Vice Mayor Roxanne Qualls responded to Rep. Steve Chabot’s Wednesday attempt to block federal funding for Cincinnati’s streetcar construction by calling it “an outrageous interference in local government decision-making.” The Enquirer today recapped the situation, which involves Chabot adding the following amendment to a massive federal transportation bill: “None of the funds made available by this Act may be used to design, construct, or operate a fixed guideway project located in Cincinnati, Ohio.” The amendment has little chance at being included in the final passage of the bill, as the Senate and President Obama would both have to approve and sign it.
A parody video of a Western & Southern PR representative explaining why the insurance company should build condos at the site of the century-old women’s shelter has earned a response from W&S. The company’s VP of public relations told The Enquirer: “Whoever created the video, we think it’s unfortunate that they’ve taken this approach,” he said. “We think it’s a distraction from finding a win-win for all involved.” The video is no longer available on YouTube, however, due to “a copyright claim by Canipre inc.”
Speaking of funny videos, MSNBC posted this video of Rep.
Jean Shmidt apparently reacting to someone incorrectly telling her that
President Obama’s health care law had been struck down. Schmidt can be
seen twisting around and making strange screaming sounds.
Here are two ways to report the latest news regarding potential Duke Energy rate hike connected to streetcar construction:
• From The Enquirer: “Duke customers could face streetcar tab”
• From The Business Courier: “Cincinnati, Duke making progress on moving utility lines”
A 15-year-old girl was killed in Over-the-Rhine around 11 p.m. last night. She was reportedly standing with a group of people, though Police haven’t released any details about the shooter.
A new poll shows support for President Obama’s shift on
More Asians are immigrating to the U.S. than Hispanics these days.
Adult humans are 16.5 million tons overweight, which
researchers say will threaten the world’s food security and environmental
Approximately half of all new AIDS cases are occurring in the South, and the region is severely short on HIV specialists.
Attorneys for the Penn State football coach who showered with a bunch of boys are starting their defense by painting him in a positive light.
Spotify will stop charging $10 per month for use on mobile devices. Free now.
Facebook acquires Face.com. Ha.
Former baseball player Roger Clemens was acquitted of perjury charges, the latest in a bunch of wasted time by the federal government investigating athletes who can afford really good lawyers.
Cincinnati would save just $7.8-$52.6 million in capital costs if it incurs tens of millions in additional expenditures to cancel the $132.8 million streetcar project, according to an audit from consulting firm KPMG released Wednesday.
By showing the potentially high costs of cancellation, the numbers could throw a lifeline to the streetcar project just one day before City Council decides whether to restart construction or permanently halt the project.
But Mayor John Cranley appears undeterred in his commitment to cancel the streetcar project. By accounting for the annual costs to operate the streetcar, Cranley estimates the city will actually save $102 million if it cancels the project.
The city already spent roughly $34 million on the project, according to the audit. Cancellation would add $16.3-$46.1 million in close-out costs, bringing the total costs of cancellation and money spent so far to $50.3-$80.1 million.
Completing the project would add $68.9 million in costs, after deducting $40.9 million in remaining federal grants, the audit found.
But the completion estimate assumes the city will need to pay $15 million in utility work — a cost that is currently being debated in court. If the city wins its case against Duke Energy, the utility company would be required to pay the $15 million and bring down the total completion costs to $53.9 million.
The audit also put the costs of operating the streetcar at $3.13-$3.54 million a year, lower than the previous $3.4-$4.5 million estimate. After revenues from fares, sponsorships and other sources, the city would need to pay $1.88-$2.44 million to operate the streetcar, according to the audit.
The reduced estimate for operating costs could become particularly important in deciding the project's fate as private contributors attempt to get the cost off the city's operating budget.
Delaying the streetcar project while KPMG conducted its audit also added $1.7-$2.8 million in costs, according to the audit. The city allocated another $250,000 to pay KPMG for its work.
The audit did not account for the potential costs of litigation if contractors and investors along the planned streetcar line sue the city to recoup costs.
City Council paused the streetcar project on Dec. 4 to obtain the cost estimates of completion, cancellation and annual operations. The full body of council will decide whether to restart the project on Thursday, before a Friday deadline set by the Federal Transit Administration for federal grants.
Read the full audit:
This post was updated at 12:59 p.m. with more information and details.
The Cincinnati Enquirer reports the Cincinnati streetcar is being delayed until 2016. The streetcar has been delayed time and time again, much to the cheer of opponents. Some opponents have taken the delay as yet another chance to take shots at the streetcar, but the city says a lot of the delays have been due to factors out of the city’s control, including ballot initiatives, the state pulling out a massive $52 million in funding and a dispute with Duke Energy.The U.S. unemployment rate remained at 7.8 percent in December, with November’s rate being revised upward to 7.8 percent as well. Employers reported adding about 155,000 jobs last month, but about 192,000 entered the labor force, meaning the amount of people joining the labor force outmatched the newly employed. The unemployment rate looks at the amount of unemployed people in the civilian labor force, which includes anyone working or looking for work.
U.S. Speaker John Boehner was re-elected U.S. House speaker. Just moments after securing the top House seat, Boehner said he will make the U.S. debt a top priority. But continuing to make the debt and deficit top issues could hurt the economy, as the fiscal cliff and recent developments in Europe have shown.
Uncle Sam is helping out Cincinnati firefighters. The Cincinnati Fire Department will be getting $6 million in federal grant money to hire 40 additional firefighters. The money will be enough to fund salaries for two years.
Cincinnati’s biggest cable provider dropped Current TV after it was sold to Qatar-based Al Jazeera. The Pan-Arab news network has had a difficult time establishing a foothold in American markets, largely because of the perception that it’s anti-American. But Al Jazeera has put out some great news stories, and some of the stories won awards in 2012.
If anyone is planning a trip through New York City’s LaGuardia Airport, Dayton International Airport now has that covered.
A small town in Ohio is being accused of covering up an alleged gang rape to protect a local football team. But KnightSec, a hacking group affiliated with the organization Anonymous, is fighting back by releasing evidence related to the case.
Despite a solved fiscal cliff deal extending emergency unemployment benefits, Ohio’s unemployed will soon be getting less aid. The decrease was automatically triggered by the state’s declining unemployment rate.
Ohio’s universities are adopting more uniform standards for remedial classes.
The newest Congress is a little more diverse.
In what might be the worst news of the century, the Blue Wisp Jazz Club could close down. The club, which has the greatest spinach-and-artichoke dip in the universe, is facing financial problems.
People who recently obtained gift cards for Rave Motion Pictures may want to get a move on. The theater is being sold to AMC Theatres.
A new theory suggest Earth should have been a snowball in its early days, but it wasn’t due to greenhouse gases.
A Purcell Marian High School administrator was fired for declaring his public support for same-sex marriage. Mike Moroski, who was the assistant principal at the Catholic school, wrote about his support for LGBT equality on his personal blog. Following the blog post, Moroski claims he was given an ultimatum by the Archdiocese of Cincinnati to resign or recant his statements. CityBeat covered same-sex marriage and the amendment that could bring marriage equality to Ohio here.
A board vote failed to remove State Board of Education President Debe Terhar from her position. In response, Ohio Democrats filed a lawsuit seeking access to her cell phone and other records. Terhar has been receiving heavy criticism for a Facebook post that compared President Barack Obama to Adolf Hitler. CityBeat wrote about Terhar’s ridiculous Facebook post here.
Cincinnati Public Schools and Winton Woods City Schools were among nine city school districts found to be scrubbing attendance data by the state auditor. The school districts claim most the errors were simple mistakes, not intentional manipulation of data. Both the auditor and schools agree state policy is too confusing and must change.
The city of Cincinnati is beginning the process of sorting through construction bids for the streetcar. Three bids ranging from $71 million to $87 million have already come to light, according to The Cincinnati Enquirer. The bids could push up the price tag on the streetcar, but Meg Olberding, city spokesperson, cautions the process is barely starting. CityBeat covered the streetcar and how it relates to the mayor’s race here.
Cincinnati is speeding up the demolitions of condemned buildings this year, particularly buildings near schools and family zones.
A new report from the Ohio Department of Job and Family Services found employment in the shale industry was up 17 percent in the first quarter of 2012. Critics caution the jobs aren’t worth the risks — pointing to a number of environmental and health concerns related to hydraulic fracturing, or “fracking.” CityBeat wrote about fracking and its extensive problems here.
One in 25 students in Columbus schools are restrained or secluded. The state’s lax seclusion policies have been under heavy criticism in the past year following the discovery that school staff were using seclusion for convenience, not just to restrain students.
On Wednesday, Metro staff will be holding a security exercise meant to gauge counterterrorism capabilities. Metro bus service will not be affected.
The Horseshoe Casino pays homage to Liuzhou, China — Cincinnati’s sister city of 25 years.
The chief curator resigned from the Cincinnati Art Museum.
A Cincinnati woman was charged with helping her daughter beat up a student during a classroom brawl.
Curiosity is officially the first robot to drill another planet.
The latest batch of bad streetcar news provoked a harsh memo to the city manager’s office from Vice Mayor Roxanne Qualls, a Democrat who has long supported the $125 million transit project. In the memo, Qualls wrote about “serious concerns” regarding the project’s costs and timetable.
“Whether people support or oppose the streetcar project, everyone has a vested interest in getting the most for our public dollars and in having the highest confidence in the management of the project,” Qualls wrote. “While a council majority has continued to support the project, council has not given the administration a ‘blank check.’”
The memo suggested putting the streetcar project through “intensive value engineering” to bring the project’s budget and timetable back in line — preferably in time for the 2015 Major League Baseball All-Star Game.
The memo is in response to streetcar construction bids coming in $26 million to $43 million over
budget. Meg Olberding, city spokesperson, says the bids leave the city with
two options: The city could take up the current bids, which could have their costs brought down upon further review, or the city could reject the
bids and rebid the project, which would cause delays. But Olberding also cautions that the administration is still working on fully reviewing the bids — a process that could take weeks or longer.
Qualls is running for mayor against John Cranley, a former Democratic council member. Cranley has been a vocal opponent of the streetcar project — creating a strong contrast between the two candidates that has placed the streetcar in the center of the 2013 mayoral race.
Earlier today, Cranley held a press conference asking the city to halt the streetcar project. In a statement, he argued it is “irresponsible” to continue work on the streetcar in light of the higher costs.
CityBeat previously covered the streetcar and how it relates to the race between Qualls and Cranley (“Back on the Ballot,” issue of Jan. 23).
The streetcar project remains on track following today's votes by City Council's Budget and Finance Committee, which approved increased capital funding and accountability measures that aim to keep the public informed on the project's progress.
The increased funding was previously proposed by City Manager Milton Dohoney to fix a $17.4 million budget gap. The money will come from more issued debt and pulled funding from various capital projects, including infrastructure improvements around the Horseshoe Casino. Under state law, none of the capital funding could be used for operating budget expenses, such as police and fire.
The accountability measures also require the city administration to report to City Council on the streetcar's progress with a timeline of key milestones, performance measures, an operating plan, staffing assessments and monthly progress reports.
"The progress reports should be easy-to-understand and made available online to ensure transparency and accountability to City Council and to citizens," the motion reads.
Council members Roxanne Qualls, Laure Quinlivan, Chris Seelbach, Yvette Simpson and Wendell Young voted for the measures. Council members P.G. Sittenfeld, Chris Smitherman and Charlie Winburn voted against both. Councilwoman Pam Thomas voted against the funding ordinance, but she abstained from voting on the motion imposing accountability measures.
Qualls, who revealed the accountability measures in a press conference prior to today's committee meeting, said the measures will move the streetcar forward and help keep the public informed.
"I will vote today to continue the streetcar project because we need to continue moving Cincinnati forward," she said. "At the same time, while I remain a supporter, it is with the recognition that it is time for a reboot on the project to instill public confidence in its management."
Smitherman did not seem convinced.
"I believe the administration will be back asking for more money on the streetcar," he claimed, pointing to pending litigation with Duke Energy over who is legally obligated to pay for moving utility lines to accommodate the project.
Smitherman and Sittenfeld also criticized their colleagues for not bringing the accountability measures to a vote earlier in the process.
"You would think seven years ago there would have been a motion like this in front of us," Smitherman said, referencing when City Council first approved the streetcar project.
Among the accountability motion's items is an operating plan, which streetcar critics have long demanded.
The city administration estimates operating the streetcar will cost about $3.5 million a year, indicating in the past that casino tax revenue would be used to pay for the costs.
Supporters say those costs will be outweighed by the city's estimated three-to-one return on investment for the streetcar project — an estimate backed by studies from advising company HDR and the University of Cincinnati.
Simpson in particular argued the costs will be made up through increased revenue as the streetcar brings in more businesses and residents to Cincinnati.
Still, Simpson says those estimates don't matter to streetcar opponents.
"If it was $5, there would be individuals who don't support this project," she said.
Winburn responded by saying he supports the streetcar as a concept, which roused laughter from streetcar supporters in the audience. Throughout the project's many hearings, opponents of the streetcar have often said they support streetcars as a concept — at least until they have to put their support to a vote or commit funding.
Still, Winburn added, "Even if you all are wrong, I want to commend you for fighting for what you believe in."
The streetcar project's $17.4 million budget gap is a result of construction bids coming in $26 million to $43 million over budget — a result of "errors in bid documents," according to Qualls.
Besides increasing funding, the city is also hiring John Deatrick, project manager of The Banks, to head the streetcar project. Multiple city officials, including Qualls and Quinlivan, have praised Deatrick for his ability to bring down project costs and put large projects on track.
The funding currently set for the streetcar will only go to the first phase of the project. The final plan calls for tracks stretching from The Banks to the Cincinnati Zoo.
"If the intent of the streetcar would only be to go from The Banks to just north of Findlay Market, then I never would have said it's a project worth doing," Dohoney previously told City Council. "The intention has always been to connect the two major employment centers of the city and go beyond that."
But Smitherman says talk of another phase is financially irresponsible: "I want to indicate to the public that they (the city administration) don't have a budget for the second leg."
The funding ordinance and accountability motion must now be approved by a full session of City Council, which has the same voting make-up as the Budget and Finance Committee.
If it's approved, the federal government has committed another $5 million to the streetcar that will help restore certain aspects of the project previously cut because of budget concerns.
Vice Mayor Roxanne Qualls is asking the city administration to complete construction of the streetcar in time for the 2015 Major League Baseball All-Star Game, which will be hosted in Cincinnati. A letter from Qualls to City Manager Milton Dohoney and Mayor Mark Mallory explains her reasoning: “This may present a challenge, but it is one I am sure the administration is capable of meeting. The streetcar will serve a critical role in efficiently and effectively moving visitors to and from Great American Ballpark and allowing them to conveniently visit other venues such as Fountain Square, Horseshoe Casino, Over-the-Rhine, Washington Park, etc.” CityBeat covered the streetcar’s delays and how the project relates to the 2013 mayor’s race here.
Gov. John Kasich will reveal his plan for funding Ohio schools today. The plan is expected to include a $300 million “innovation fund” to support school initiatives that improve teaching and learning. In a previous interview, Rob Nichols, Kasich’s spokesperson, explained the troubles of establishing a plan: “Many governors have tried before. Many states have been sued over their formulas. It’s something we have to take our time with and get it done right.”
City Council passed a resolution urging Kasich to expand Medicaid. Qualls explained the need for the resolution: “Expanding Medicaid will create a net savings to the state over time, allow the City’s health department to improve access to health services at lower costs, and most importantly, provide health care coverage for thousands of Cincinnati residents who need it most.” A study from the Health Policy Institute of Ohio found a Medicaid expansion would save the state money for the first few years. Previous studies also found correlations between improved health results in states and a Medicaid expansion, and a study from the Arkansas Department of Human Services claimed Arkansas would save $378 million by 2025 with the Medicaid expansion.
A new report found poverty is increasing in Ohio. About one in six Ohioans are below the federal poverty line, according to the Ohio Association of Community Action Agencies report.
About $100 million in development downtown is kicking off today. City officials and business leaders are gathering for the groundbreaking this morning of a lot at Fifth and Race streets that has idled for nearly 30 years. The lot will host the new four-story headquarters for DunnhumbyUSA.
Kasich says Ohio will continue taking Ky. jobs in the future. The rough words are Kasich's interesting approach to encouraging Ky. legislators to support the Brent Spence Bridge project.
Ohio Attorney General Mike DeWine issued a scam alert telling businesses to be wary of emails claiming to be from the Federal Trade Commission or FTC.
Miami University broke its application record.
A Wright State professor saved Cincinnati-based Kroger more than $170 million with his work on more accurate pharmaceutical predictions. The professor, Xinhui Zhang, is now one of the six finalists worldwide for the Franz Edelman Award.
Ohioans now have a phone number to report cases of child abuse or neglect: 855-O-H-CHILD, or 855-642-4453. Reports can be anonymous.
Humanity is one step closer to the inevitable robot apocalypse. GE's hospital robot can sort scalpels, sterilize tools and prepare operating rooms for surgery.
Councilman P.G. Sittenfeld on Monday announced he will vote to continue the $132.8 million streetcar project.
Sittenfeld’s support for the project means the incoming City Council might not have the six votes required for an emergency clause that would immediately halt the project and make a cancellation vote insusceptible to referendum.
If streetcar supporters successfully put a cancellation vote to referendum, the project would be forced to continue until the streetcar once again appears on the ballot in November 2014. The continuation would sink more costs into the project as construction is forced to progress for nearly a year.
Sittenfeld’s announcement preceded a vote from the outgoing City Council to officially write the streetcar project into law, which means Mayor-elect John Cranley, a streetcar opponent, won’t be able to take administrative action to halt the project and instead must bring the project to a City Council vote after he and other newly elected officials take office on Sunday.
The two remaining swing votes in the incoming council — David Mann, who Cranley on Monday named as his choice for vice mayor, and Kevin Flynn — previously discussed delaying the project as council analyzes whether it should permanently cancel or continue with currently ongoing construction.
But Sittenfeld equated a delay to total cancellation after warnings from the federal government made it clear that the city could lose federal funds for the project even if it only delayed progress.
If either Flynn or Mann move to support the streetcar project, streetcar proponents would gain a five-vote majority on the nine-member council to continue the project and preclude a referendum.
Sittenfeld characterized his decision as the better of “two bad choices.”
“We can pursue a project that has never earned broad public consensus and that has yet to offer a viable and sustainable budget,” he said at a press conference, “or we can scrub the project and throw away tens of millions of dollars in taxpayer money, forgo a massive federal investment and have nothing to show for the enormous effort and expense.”
To explain his decision, Sittenfeld cited concerns about how much money has been dedicated to the project at this point, including $32.8 million in sunk costs through November and a potential range of $30.6-$47.6 million in close-out costs, according to estimates from the city. Sittenfeld noted that, at the very least, half of the city’s $87.9 million share of the project will be spent even if the city pulls the plug now.
Sittenfeld also voiced concerns that pulling back from the project and effectively forfeiting $44.9 million in allocated federal funds would damage Cincinnati’s reputation with the federal government. That could hamper projects he sees as much more important, such as the $2.5 billion Brent Spence Bridge project.
“I did my part to avoid getting us into this reality, but it cannot be wished away,” Sittenfeld said.
There was one major caveat to Sittenfeld’s decision: the operating costs for the streetcar, which the city estimates at $3.4-$4.5 million a year.
Sittenfeld said the cost must not hit Cincinnati’s already-strained operating budget and instead must be paid through fares, sponsorships, private contributions and a special improvement district that would raise property taxes near the streetcar line.
A special improvement district would require a petitioning process in which property owners holding at least 60 percent of property frontage near the streetcar line would have to sign in favor of taking on higher property taxes to pay for the streetcar.
“Ultimately, that’s a decision for the citizens,” Sittenfeld said.
If the special improvement district doesn’t come to fruition, Sittenfeld cautioned that the streetcar project would be more difficult to support going forward.
Asked whether Sittenfeld thinks some of the people who voted for him will see his decision as a betrayal, he responded that his conclusion shows the “thoughtfulness and carefulness” people expect of him when it comes to taxpayer dollars, given the costs of cancellation.
City Manager Milton Dohoney Jr. released a memo yesterday detailing how the streetcar project's $17.4 million budget gap could be fixed by pulling funds from various capital projects and issuing more debt, upholding a promise he made at a contentious City Council meeting Monday.
The five-page memo says none of the proposed capital funding sources can be used to balance the city's $35 million operating budget deficit because of limits established in state law, which means the streetcar project is not being saved at the expense of cops, firefighters and other city employees being laid off to balance the operating budget.
"Neither Capital nor TIF funds can be used to help with the operating budget deficit that the City is facing," the memo reads. "They are separate sources of funds and by State Law, cannot be used for operating expenses like police and fire personnel."
At least $5.4 million would be temporarily pulled from the $10.6 million planned for the Music Hall renovation project, but the redirected Music Hall funds would eventually come back in capital budgets for fiscal years 2017, 2018 and 2019. City spokesperson Meg Olberding explained in an email that moving funds around would not hinder the Music Hall project.
"The use of $5.4 million of Funds set aside for Music Hall this year is money currently sitting in a fund for this year that will not be needed this year," she wrote. "Funds for Music Hall will not be needed until 2016, the agreed upon deadline for fundraising for the Music Hall renovation with the Music Hall Revitalization Company. Therefore, the City is still keeping its commitment to Music Hall, while also advancing the streetcar project."
About $6.5 million would be taken from infrastructure projects surrounding the Horseshoe Casino, including funds that would otherwise go to lighting the trees along Reading Road and a study that would look at adding a turn lane from Reading Road. The memo acknowledges the trade-off, but it also justifies the redirected spending: "However, since the Streetcar passes within two blocks of the Casino Site, it is a project within the Casino Area that both benefits the TIF District and the Casino."
The memo also recommends pulling $400,000 that was originally set for traffic signal replacement, which would be used for the traffic replacement component of the streetcar project.
Another $500,000 would come from funding currently set for water main relocation and replacement. The memo says the water main funding is simply Water Works' share: "Of the $21.7 million cost overrun for the Streetcar project, approximately $1 million was for water main relocation (and) replacement work. Water Works' share of this is $0.5 million."
The remaining $4.6 million would come from the city issuing general capital debt, which would be paid back through a small portion of the income tax that is established in the City Charter for permanent improvement purposes. The memo acknowledges this would cost other economic development and housing projects $340,000 a year over the next 20 years, but it claims the funding is justified because the streetcar project is a permanent improvement project.
The memo outlines other vague capital funding options that could be used to balance the budget, but Dohoney does not explicitly recommend them.
The memo also leaves open the possibility of future sources of funding, including $15 million that could be opened up if the city prevails in court against Duke Energy over who has to pay for moving utility lines to accommodate streetcar tracks — but this was money that was originally supposed to go to neighborhood development projects — and the sale of remaining city-owned land at the Blue Ash Airport.
City Council still has to consider and approve the memo's recommendations for them to become law.