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Council Rejects Compromise on Sewer Projects

0 Comments · Wednesday, June 26, 2013
City Council on June 24 turned down a compromise between Cincinnati and Hamilton County that would have ended the county’s funding hold on sewer projects, which would have allowed the projects to move forward.   
by German Lopez 06.24.2013
Posted In: News, Streetcar, Economy, City Council, Commissioners at 08:53 AM | Permalink | Comments (0)
 
 
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Morning News and Stuff

Streetcar vote today, sewer project compromise reached, "megadeals" fail expectations

The federal government is committing another $5 million to Cincinnati’s streetcar project, but the city must first close the budget gap that has recently put the project in danger. The U.S. Department of Transportation is also asking the city to restore certain aspects of the project, including a passenger information system and a screen or wall that would block power substations from public view. City Council’s Budget and Finance Committee is expected to vote on the project’s $17.4 million budget gap today. The latest proposed fixes from the city manager would pull funding from multiple capital projects, including improvements around the Horseshoe Casino, and issue more debt. Cincinnati and Hamilton County announced a compromise Friday that will end the county's funding hold on sewer projects. As a result, the city will be required to rework its “responsible bidder” ordinance and repeal the “local hire” and “local preference” laws that incited county commissioners into passing the funding hold in the first place. The city says its responsible bidder law creates local jobs and encourages job training, but the county argues that law’s rules favor unions and push up costs on Metropolitan Sewer District projects. CityBeat covered the city-county conflict in further detail here. Ohio is No. 3 in the nation for “megadeals” — massive government subsidies to corporations that are meant to encourage in-state job creation — but a new report found many of the deals rarely produce the kind of jobs initially touted by public officials. For Cincinnati, the risks of megadeals are nothing new: In 2011, the city’s $196.4 million megadeal with Convergys collapsed when the company failed to keep downtown employment at or above 1,450, and the company agreed to pay a $14 million reimbursement to the city. As of Friday, Cincinnati is officially leasing its parking meters, lots and garages to the Greater Cincinnati Port Authority. The Port announced it had signed the lease Friday, putting an end to a four-day controversy over whether the agency was going to sign the lease at all. The city will get a $92 million lump sum and at least $3 million a year from the deal, according to city estimates. Current plans call for using the money to help balance city budgets and fund economic development projects, including the I-71/MLK Interchange. The prison company that owns and operates a northeastern Ohio prison lost four contracts around the nation in June, according to the American Civil Liberties Union (ACLU). In May, CityBeat released an in-depth report looking at the Corrections Corporation of America’s handling of the Lake Erie Correctional Institution, finding evidence of rising violence and unsanitary conditions. About one in three Ohio children live in a home where neither parent has a full-time, year-round job, and a quarter now live in poverty. Although Ohio’s overall ranking improved in Annie E. Casey Foundation’s annual report card on the well-being of children, the state worsened in three out of four economic indicators. President Barack Obama will make a speech tomorrow unveiling sweeping plans for climate change. The president is expected to impose a series of regulations, particularly on power plants, with executive powers, which means the plans won’t require congressional action. Ohio gas prices are still coming down this week. Plants apparently do math to get through the night. Some diseases, including some types of cancer, are now being diagnosed by smell.Got questions for CityBeat about anything related to Cincinnati? Today is the last day to submit your questions here. We’ll try to get back to you in our first Answers Issue. CityBeat is looking to talk to convicted drug offenders from Ohio for an upcoming cover story. If you’d like to participate or know anyone willing to participate, email glopez@citybeat.com.
 
 
by German Lopez 06.21.2013
Posted In: News, County Commission, City Council at 03:18 PM | Permalink | Comments (0)
 
 
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City, County Work Out Compromise on Sewer Projects

Council to rework "responsible bidder" ordinance

Cincinnati and Hamilton County today announced a compromise that will end the county's funding hold on sewer projects, allowing the projects to move forward. As a condition, the city will have to rework and repeal the controversial laws that incited county commissioners into approving the hold in the first place.As part of the deal, Commissioner Chris Monzel will ask the Hamilton County Board of Commissioners to immediately repeal a hold on Metropolitan Sewer District (MSD) projects.On the city's side, Councilman Chris Seelbach will ask City Council to immediately repeal so-called "local hire" and "local preference" rules, which require a certain percentage of contractors' workforce be local residents.The city, county and their partners will then work on changing the city's responsible bidder ordinance before new rules are officially implemented on Aug. 1.In May, City Council modified the responsible bidder ordinance originally passed in June 2012. The changes were supposed to trigger in August, but the compromise may alter those changes altogether. Under the current language, the ordinance forces MSD contractors to establish specifically accredited apprenticeship programs and put money — based on labor costs — toward a pre-apprenticeship fund.The city argued the programs will help create local jobs and train local workers, but the county criticized the rules for supposedly favoring unions and imposing extra costs on MSD projects.Meanwhile, MSD is facing pressure from the federal government to comply with a mandate to retrofit and replace Cincinnati's sewers. MSD estimates the project will cost $3.2 billion over 15 to 20 years, making it one of the largest infrastructure projects in Cincinnati's history.But the project was effectively halted by the county commissioners' funding hold, which forced the city and county to hastily work out a compromise.CityBeat covered the county-city conflict in further detail here.
 
 

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