by German Lopez
Posted In: News
at 10:08 AM | Permalink
Messer Construction asks for less than $500,000 more; easily covered by contingency fund
Messer Construction says it needs nearly $500,000 more than the original $71 million it asked for to
do construction work for the streetcar project, but the extra money is
easily covered by the project’s $10 million contingency fund that the
city established in case of further cost overruns.In June, City Council approved an extra $17.4 million and
accountability measures for the streetcar project, which require the city manager to publicly update council with a timeline of key milestones, performance measures, an
operating plan, staffing assessments and monthly progress reports. During discussions for
the funding and accountability proposals, some council members, particularly Councilman P.G.
Sittenfeld, raised concerns that Messer would require more money than
the city could afford. Sittenfeld said he was especially concerned Messer would have all the leverage going forward, considering the city supposedly needed the lower construction bid to keep the project within its new budget.Messer was the lowest bidder for the project’s
construction work, but even that bid came $26 million higher than
the city’s original estimates, forcing the city to close a budget gap if
the project was to continue.
With the construction bids taken care of, the only known
funding concern for the streetcar is who has to pay $15 million for moving utility
lines to accommodate for streetcar tracks. Duke Energy argues the cost burden is on
the city, while the city says the energy company has to pay up. The
issue is currently being decided in court.Ever since Cincinnati began pursuing the streetcar
project, it’s been mired in misrepresentations and political
controversy, which CityBeat covered in further detail in this week’s cover story.