How P.G. Sittenfeld found himself at the center of the city’s parking plan drama
2 Comments · Wednesday, July 24, 2013
Cincinnati Councilman P.G. Sittenfeld was
one of the first to find out about a memo that’s spurred renewed calls
to halt the city’s plans to lease its parking meters, lots and garages
to the Greater Cincinnati Port Authority.
by German Lopez
Ohio’s jobless rate unchanged, Port patches parking lease, anti-abortion bill returns
Ohio’s unemployment rate remained at 7.2 percent in July, unchanged from June, according to new data from the Ohio Department of Job and Family Services.
The amount of employed Ohioans went up by 5,300 from month-to-month and
37,700 year-over-year, showing stronger signs of job growth than earlier in the year. But the amount of jobless Ohioans still looking for jobs went up by
3,000 between June and July. In the past year, the private
service-providing sector, education and health services and leisure and
hospitality have gained the most jobs, while local government and
construction jobs have plummeted.
The Port Authority of Greater Cincinnati proposed keeping neighborhood parking meter hours the same under a lease agreement with Cincinnati in which the city is handing over control of its parking meters, lots and garages to the Port and the agency is tasking private companies with operating the assets. Keeping the meter hours
the same as today, instead of expanding them as previously suggested,
would lower Cincinnati’s upfront lease revenue from $92 million
to $88.3 million and reduce annual payments, which were originally
projected at $3 million but estimated to go up over the life of the
lease. Still, the move would satisfy neighborhood residents and businesses who were worried the expanded hours would quickly become a financial hassle. CityBeat covered the parking lease and the controversy surrounding it in further detail here.
Republican legislators are reintroducing a bill that would ban abortions in Ohio as early as six weeks after conception,
even though questions remain about the proposal’s constitutionality.
The bill has been dubbed the “heartbeat bill” because it prohibits
abortions after a fetal heartbeat is detected. A federal judge on July
22 blocked a similar law in North Dakota after deeming it
unconstitutional. “The United States Supreme Court has unequivocally
said that no state may deprive a woman of the choice to terminate her
pregnancy at a point prior to viability,” wrote U.S. District Judge
Daniel Hovland, who was appointed to the District of North Dakota seat
by former President George W. Bush in 2002. Health experts generally
agree viability is not reached until 24 weeks into the pregnancy.
Part of the Cincinnati streetcar route could be operational in late 2015, much earlier than the Sept. 15, 2016 date the city previously announced for the entire track.
The Ohio Ethics Commission won’t investigate Gov. John Kasich’s relationship with a company
that received $619,000 in tax credits from JobsOhio because Kasich
supposedly made a clean break from the company upon taking office.
JobsOhio, the privatized development agency established by Kasich and
Republican legislators, has been mired in controversy in the past few
weeks for providing state aid to companies that have direct financial
ties to JobsOhio board members and the governor.
Meanwhile, Kasich is fueling speculation that he will run for president in 2016.
Cincinnati mayoral candidate and ex-Councilman John Cranley on Thursday unveiled an innovation plan
that he says will boost government transparency and help foster
Cincinnati’s newly gained reputation as a tech startup hub. The plan
would take $5 million in capital funds over four years and ask local
startup incubators Cintrifuse, The Brandery and CincyTech where they
would like to see the money going. It would also call for hiring a chief
innovation officer (CIO) and creating “CincyData,” a transparency
initiative that would gather and publish city data to create “a more
efficient, effective and user-friendly City government.” Under the plan,
both the CIO position and CincyData would be leveraged to find new ways
to carry out city services in the hopes of running the local government
Cincinnati Public Schools’ ratings are likely to dip
as the school district transitions into Common Core standards and a
new state report card system. Superintendent Mary Ronan says the
district is doing well but needs to work on getting kids’ reading scores
up to grade level. CityBeat originally covered the ratings drop here and some of the hurdles faced by CPS in the past few years here.
New data show the growth of health care costs is slowing down in the Cincinnati area.
Ohio will come up with a new plan to execute condemned inmates
no later than Oct. 4 to deal with the state’s expiring supply of drugs
used to carry out capital punishments. Specifics were not detailed in
Procter & Gamble is recalling dog and cat food because some of the product may be contaminated with Salmonella.
Science confirmed pulling out is a bad way to avoid pregnancy.
by German Lopez
City mulling disparity study, Medicaid expansion bill underway, parking hours criticized
City Council could use leftover revenue from the previous budget cycle and money from the parking lease
to fund a disparity study that would gauge whether minority- and
women-owned businesses should be favorably targeted by the city’s
contracting policies. The study could cost between $500,000 to $1 million, according to city officials. Because of a U.S. Supreme Court case, the city must carry out the study before it can impose policies that favorably target minorities or women with business contracts. Since the city's last race- and gender-based program was dismantled in 1999, contract participation rates for
minority-owned businesses dropped from a high of 22.4 percent in 1997 to
a low of 2.7 percent in 2007, but rates for women-owned businesses have remained relatively unchanged. But the numbers could be understating how many minority-owned businesses there are because classifying as one is now voluntary, while it was mandatory in the 1990s.State Rep. Ron Amstutz, chairman of the Ohio House Finance and Appropriations Committee, says he wants to move on a package of bills that would include the Medicaid expansion by early October. The bills will also tackle other issues, such as how to deal with growing concerns about opiate addiction in Ohio. The Health Policy Institute of Ohio says the federally funded Medicaid expansion would insure nearly half a million Ohioans and generate roughly $1.8 billion for the state in the next year. But Republican legislators in the General Assembly say they're concerned the federal government won't be able to uphold its commitment to the expansion. Recent polling found about 63 percent of Ohioans support expanding Medicaid.East side residents pleaded with Greater Cincinnati Port Authority officials yesterday to reduce enforcement hours for parking meters under the city's controversial parking lease. The plan allows for enforcement until 9 p.m., but residents say it should only go to 6 p.m. to avoid hurting local businesses that might rely on free parking during the evening. The city is leasing its parking meters, lots and garages to the Port Authority, which will then manage the assets through private operators from around the country. The city administration estimates the deal will produce $92 million up front and at least $3 million a year afterward for Cincinnati, which officials plan to use for development projects and to help close budget gaps.Meanwhile, opponents of the parking lease appealed their legal challenge to the Ohio Supreme Court. Opponents argue the lease should be susceptible to voter referendum. The city claims Cincinnati's emergency clause powers allow council members to expedite laws and remove the possibility of referendum altogether. The legal challenge was initially successful in a lower court, but the appeals court ultimately sided with the city. It's unclear whether the Ohio Supreme Court will hear the challenge.Legal experts say it's unclear which, if any, of Ohio's new abortion restrictions could survive a court battle. The anti-abortion measures, which were passed in the state budget by Republican legislators and Gov. John Kasich, impose a series of regulatory hurdles that require extra medical procedures prior to getting an abortion and could be used to shut down abortion clinics.An internal Environmental Protection Agency (EPA) report suggests that fracking, an oil- and gas-extraction process, can contaminate underground drinking water. The findings could have implications for Ohio, which is currently undergoing a fracking boom as companies rush to tap into oil and gas reserves in northeastern parts of the state. CityBeat covered Ohio’s fracking boom in further detail here.Councilwoman Pam Thomas and ex-Councilman Cecil Thomas want everyone to know that they have not endorsed anyone for mayor.Ryan Widmer's mother, who gained notoriety for defending Widmer during his three trials, was found dead yesterday. There were no obvious signs of trauma or foul play. Widmer is currently serving 15 years for drowning his wife in a bathtub in 2008.Scientists may have to genetically modify oranges to save them from a deadly disease.
by German Lopez
Behind the parking plan drama, state budget cuts local funding, bridge to get federal bump
Being one of the first to discover a critical memo put Cincinnati Councilman P.G. Sittenfeld at the center of an ongoing drama
regarding the city’s plans to lease its parking meters, lots and
garages to the Greater Cincinnati Port Authority. The memo criticized
the financial details of the lease, but it was kept from the Port, City
Council and the public for nearly a month. Ever since the controversial
parking plan passed City Council and was upheld in court, concerned
citizens, business leaders and critics like Sittenfeld have been calling
on the city and Port to rework or halt the deal. So far, the city and
Port have stuck to their support. The city will get a $92 million lump
sum and at least $3 million a year from the lease, which it currently
plans to use to help balance city budgets and fund development projects,
such as the I-71/MLK Interchange.
The latest state budget secured more cuts to city and county governments,
putting local governments at a $1.5 billion shortfall in the next two
years compared to 2010 and 2011, according to a new report from
progressive think tank Policy Matters Ohio.
Republican Gov. John Kasich and Republican legislators slashed local
government funding in 2011 to help fix an $8 billion budget hole. But
the latest state budget, which Kasich signed into law in June, was awash
in extra revenues because of Ohio’s economic recovery — so much so that
legislators passed $2.7 billion in tax cuts. For Cincinnati, the
original cuts cost the city more than $22 million in revenue.
The Brent Spence Bridge was bumped up in a federal funding priority list
through a successful amendment from Sen. Rob Portman, an Ohio
Republican. The amendment prioritized $500 million for obsolete and
structurally unsound bridges, but it’s so far unclear how much of the
money will go to the Brent Spence Bridge project, which state officials
estimate will cost $2.7 billion. Currently, Ohio and Kentucky officials
plan to pay for the bridge project by enacting tolls.
Vice Mayor Roxanne Qualls, who’s running for mayor this
year, is calling on the city manager to produce a plan that would
structurally balance Cincinnati’s operating budget by 2016. “To build on
the momentum Cincinnati is now experiencing, we must set a course now
for a fiscally sustainable future,” Qualls said in a statement. “That’s
why I’m urging that we have a plan to reach structural balance by 2016,
restore reserves and increase the city’s pension contribution, minimize
using the parking lease payment to restore budget cuts and continue to
invest in neighborhoods and jobs to grow revenue.” The announcement
comes more than one week after Moody’s, the credit rating agency, downgraded Cincinnati’s bond rating
and criticized the city for its exposure to unsustainable pension
liabilities and reliance on one-time sources to fix budget gaps.
Ex-Councilman John Cranley, who’s also running for mayor,
is rolling out his jobs plan today. The initiative will provide a job
training program for individuals facing long-term unemployment or
underemployment, which the Cranley campaign estimates will result in 379
individuals per year obtaining full-time, permanent jobs. The
program will be mainly paid for by pulling funds from the city’s Office of
Environmental Quality, Department of Finance, travel and the state
lobbyist. “My deepest conviction is that there is dignity in work. I
believe all able-bodied adults should work and be self-sufficient. And I
believe society has an obligation to ensure the opportunity to work
exists,” Cranley said in a statement.On Second Thought: “Facts vs. Perceptions in Trayvon Martin Coverage.”
Police yesterday shot and killed
Roger Ramundo, an allegedly armed Clifton resident. Officers had
been called to the area of Clifton and Ludlow avenues by a mental health
provider, who said there was a person with mental health issues armed with a gun, according to interim Cincinnati Police Chief Paul
Humphries. Police said they tried to first subdue Ramundo with Tasers
during an ensuing struggle, but they were unsuccessful and the man
pulled out his gun and fired a shot. That’s when one officer fired two
shots that hit Ramundo, who was then taken to University Hospital, where
he was pronounced dead.
Gov. Kasich isn’t providing clemency
to a Cleveland killer who stabbed his victim 17 times, overruling a
rare plea for mercy from prosecutors but siding with a majority of the
state parole board. Billy Slagle will be executed on Aug. 7.
Ohio will take a hands-off approach
to promoting Obamacare, even though outreach will be crucial for the controversial
health care law. President Barack Obama’s administration estimates it
will have to enroll millions of young adults into health care plans to turn the law into a success.
Meanwhile, Hamilton County is investigating if Obamacare could result in lower property taxes by allowing the county to shift costs to the federal government.
A Cincinnati money manager is being accused of running an “elaborate Ponzi scheme”
that cost investors “tens if not hundreds of millions of dollars,”
according to a July 20 complaint filed in the Hamilton County Common
The average price of a flight from Cincinnati/Northern Kentucky International Airport dropped, but the airport is still the second-most expensive in the nation.
CityBeat gave Internet cat-celebrity Lil Bub an in-depth look in this week’s issue. Find it online here.
Want to maximize your tan? Here is how close you could get to the sun and survive.
0 Comments · Wednesday, July 24, 2013
A conservative organization is
threatening more legal action to stop the city’s plans to lease its
parking meters, lots and garages to the Greater Cincinnati Port
by German Lopez
Port wants parking lease money, Ohio No. 2 for job losses, Kasich plans more tax cuts
New documents acquired by The Cincinnati Enquirer show the Greater Cincinnati Port Authority wants $27 million of the city’s $92 million parking lease.
The Port Authority, a city-funded development agency, says it would use
the money for various projects around the city. The request, which has
been supported by Vice Mayor Roxanne Qualls, may explain why the Port
Authority inexplicably took four days to sign its lease agreement with the city:
It wanted some of the money for itself. The city is leasing its parking
meters, lots and garages to the Port Authority, which will then hire
various private operators from around the country to manage the assets.
The deal will provide $92 million up front and at least $3 million a
year afterward, which the city plans to use for development projects and
to plug budget gaps.
Ohio lost the No. 2 most jobs in the nation last month, according to the U.S. Bureau of Labor Statistics. That pushed the state unemployment rate to 7.2 percent in June, up from 7 percent in May, the Ohio Department of Job and Family Services
found. The state lost 12,500 jobs in June, with the private sector
showing losses across the board. The month’s big losses mean the state
has only added 15,000 jobs in the past year, even though the state
actually topped job growth in May with more than 32,000 new jobs. In
June, Pew Charitable Trusts found Ohio was the No. 46 state for job growth between April 2012 and April this year.
Gov. John Kasich says he wants to further cut state taxes to reduce the bracket for the wealthiest Ohioans
to less than 5 percent. Such a cut could require raising regressive
taxes that put more of a burden on the state’s poorest, such as the
sales tax. The latest two-year state budget, which Kasich signed into
law, did just that, as CityBeat previously covered:
It cut income taxes in a way that favored the wealthy, then it raised
sales taxes in a way that forced the lowest-income Ohioans to pay more.
A report released yesterday suggests Ohio taxpayers could be on the hook for costs
if something goes wrong at an oil and gas drilling operation. The
Environment Ohio report finds the state’s regulations on “fracking,” an
oil and gas extraction process, require too little financial assurance
from drilling companies to dissuade dangerous risks. In Ohio, fracking
well operators are required to secure $5,000 in upfront bonds per well, but even those payments can be avoided through regulatory
loopholes. At the same time, damage caused by fracking can cost
communities and the state millions of dollars, and simply reclaiming the
well and its property can cost hundreds of thousands.
Hamilton County Prosecutor Joe Deters says he wouldn’t have prosecuted George Zimmerman,
the man who shot and killed an unarmed black 17-year-old last year in
Florida. Zimmerman was found not guilty of manslaughter and
second-degree murder by a jury on July 13 after he claimed self-defense.
A lack of local access to healthy foods was linked to higher obesity rates
in a study released yesterday. That could be troubling news for
Avondale and other Cincinnati neighborhoods that are deemed “food
deserts,” areas that don’t have reasonable access to healthy foods. CityBeat covered the efforts of some city officials, including Councilwoman Laure Quinlivan, to end food deserts here.
Cincinnati is looking for feedback on local bike projects.
The American Civil Liberties Union is asking Ohio to avoid shutting off electricity in state prisons,
calling the practice “dangerous” as temperatures approach 100
degrees. Ohio’s prisons have already shut down electricity twice in the
afternoon this week and relied on backup generators. The shutdowns are commonly deployed as part of a power
agreement that’s generated $1.3 million for the state since 2010.
Harris Teeter Supermarkets shareholders are suing to stop a planned acquisition from Kroger.
Detroit yesterday became the biggest city in U.S. history to file for bankruptcy.
An “invisibility wetsuit” hides people from sharks.
by German Lopez
Parking lease facing legal dispute, critical memo dismissed, mayor to attend streetcar social
In a letter to the city solicitor, a conservative organization is threatening more legal action
to stop the city’s plans to lease its parking meters, lots and garages
to the Greater Cincinnati Port Authority. The Coalition Opposed to
Additional Spending and Taxes (COAST) claims the city manager exceeded his authority when he
made two “significant and material” changes to the lease agreement after
City Council approved the deal in March. If the city solicitor doesn’t
take up the legal challenge, COAST could sue the city by itself.
Supporters of the parking lease argue it’s necessary to fund development
projects in the city and modernize the city’s parking services, but
opponents say it gives up too much control over the city’s parking
meters, lots and garages and will hurt businesses downtown.
The Business Courier reports that a critical parking memo was supposed to provide a “strike point” for negotiations between the Port Authority and Xerox,
which will manage the city’s parking meters under a lease agreement.
But the city administration didn’t begin sharing the June 20 memo with
anyone else, including the Port Authority, until July 12, after council
members and media outlets began asking the city administration about it.
The memo suggested the city is getting a bad deal from the parking lease agreement and overpaying Xerox. Port and city officials argue the memo relied on outdated information and made technical errors.
Mayor Mark Mallory will today join fellow streetcar supporters
at Rhinegeist Brewery to discuss the streetcar project’s latest news
and future. The city on July 15 set an opening date of Sept. 15, 2016
after finalizing a construction contract with Messer Construction, Prus
Construction and Delta Railroad, which was made possible after City Council closed a $17.4 million budget gap in June. CityBeat recently debunked some of the misrepresentations surrounding the streetcar project here.
Commentary: “Zimmerman Reactions Overlook Broader Racial Issues in America.”
Public access media organization Media Bridges is shutting down
following city and state funding cuts. The organization’s demise is a
great loss to producers like Rufus Johnson, who used its resources for years. The city picked up Media Bridges’ funding after the
state eliminated a fund that was provided by Time Warner Cable, but even the local funding was fully cut in the budget passed in May. City officials
have justified the cuts by pointing to citizen surveys that ranked Media
Bridges poorly in terms of budgetary importance, but a CityBeat
analysis found the surveys were skewed against the low-income
Cincinnatians that benefit the most from public access programs like
State Rep. Peter Beck, a Republican from Mason, is facing multiple felony charges
related to securities fraud. A lawsuit filed in Hamilton County by
investors alleges that money invested at the request of Beck and others
was used for personal gain — specifically, Beck’s campaign — instead of a
business investment as originally intended. Beck has been in power
since 2009, and his current term is set to expire in 2014.
A former poll worker was sentenced to five years for voter fraud after she voted twice for herself and three times for her sister, who’s been in a coma since 2003.
The driver who last August accidentally hit and killed a local cyclist is awaiting his sentence.
Local bike advocacy groups are asking courts to give the maximum
penalty to the driver, who’s facing at most six months in jail and a
The local housing market is rapidly recovering in a
continuing good sign for the economy, with single-family home permits up
48 percent in June compared to the year before, according to the Home
Builders Association of Greater Cincinnati.
Cincinnati Reds games are No. 3 for local TV ratings in all of Major League Baseball, behind only the Detroit Tigers and St. Louis Cardinals.
Xavier University is laying off 31 employees and cutting 20 currently vacant positions.
A Miami University student is getting an astronaut scholarship, making him one of 28 students nationwide to receive the honor.
Entrepreneur says Cincinnati is an “unexpected hub for tech startups.”
A new self-aiming rifle would outshoot human snipers.
Popular Science has a guide for arguing against anti-vaccine crazies here.
by German Lopez
Posted In: News
at 08:58 PM | Permalink
Conservative group claims city manager exceeded authority with changes
In a letter to the city solicitor, a conservative organization is threatening more legal action to stop the city’s plans to lease its parking meters, lots and garages to the Greater Cincinnati Port Authority.The Coalition Opposed to Additional Spending and Taxes (COAST) claims the city manager made “significant and material” changes to the lease agreement after City Council approved the deal in March. That, the letter states, exceeds the city manager’s authority.The two changes in question: First, the city changed the original June 30 deadline for issuing bonds that will finance the deal to a less specific 90-day period that will kick in once the agreement is in full effect. Second, the city added sections that allow the Port to review and potentially terminate the lease within 75 days.The changes were made after another legal challenge delayed the lease’s implementation.The letter asks City Solicitor John Curp to review the allegations and sue the city. If he doesn’t, COAST would gain the legal standing necessary under Ohio law to sue the city by itself.“The law requires that before a lawyer can sue the city and ask taxpayers to pay his fees he must send a letter of this type,” Curp explained in an email.Curp also wrote that the city will review the allegations and respond within a month.“Today’s letter is an attempt to comply with part of the legal process that would allow the authors to claim attorneys fees from taxpayers,” he wrote. “The Law Department will review the issues raised, attempt to engage the authors constructively and respond appropriately. The policy of the Law Department is to defend aggressively against claims from lawyers that seek taxpayers dollars to fund their litigation against the City of Cincinnati.”COAST is pursuing the legal challenge as a longtime critic of the parking lease. The organization supported the previous lawsuit against the lease, which an appeals court struck down. The letter comes in the middle of another controversy over a June 20 memo that the city administration kept from the public, Port Authority and City Council for three-plus weeks, until council members and media outlets enquired about it. The
memo suggested the city is getting a bad deal from the lease agreement.
Port and city officials argue the memo made technical errors and used
outdated information.Under the parking lease, the city will receive a $92 million lump sum and at least $3 million in annual payments, according to city estimates.Supporters of the parking lease argue it’s needed to raise funds for development projects and modernize the city’s parking services. Opponents say the lease gives up too much control over the city’s parking meters, lots and garages and will hurt businesses downtown by causing meter rates and operation hours to go up.
by German Lopez
City debt outlook worsens, Port apologizes for email about parking memo, fracking tax fails
It may become more expensive for the city to issue debt after Moody’s downgraded the city’s bond rating.
The credit rating agency pinned the blame on the city’s exposure to
local and state retirement systems, as well as the city’s reliance since
2001 on one-time sources to balance the operating budget. Still,
Moody’s does give the city some credit for its economically diverse
population and recently stabilized earnings tax, despite docking the city for bad socioeconomic indicators, particularly resident income levels and historical unemployment rates.
The Greater Cincinnati Port Authority’s CEO Laura Brunner is apologizing to the public and council members
following the exposure of an email that implied she was trying to keep a
critical parking memo away from public sight. Brunner says she was just trying
to buy time so she could directly show the memo to the Port Authority’s
board before it was reported by news outlets, but she acknowledges that
her email was ill-conceived and came off as an attempt to stifle
transparency. The memo suggests Cincinnati is getting a bad deal from its parking lease agreement with the Port Authority and several private operators, but the Port Authority and city officials argue the memo is outdated and full of technical errors.
The Cincinnati Enquirer has a report detailing political contributions from oil and gas companies
that may have helped bring down a state “fracking tax,” which was supposed to
raise state revenue from Ohio’s ongoing oil and gas boom. Apparently,
many of the Republican legislators who staunchly opposed the oil and gas
severance tax also took in a lot of money from the same companies who
would have to pay up. The tax proposal was effectively dead on arrival,
even with the hyperbolic support of Republican Gov. John Kasich. Fracking is an
extraction technique that pumps millions of gallons of water underground
to free up oil and gas. CityBeat covered its effects on Ohio in further detail here.
Water utility leaders are meeting in Cincinnati this week to discuss sustainable business models.
In Cincinnati, water usage has dropped while expenses to treat water
and waste water have escalated, causing the Metropolitan Sewer District
to take in less money. The conference will discuss models that can
adjust around this trend while keeping rates low for customers.
The owners of The Hanke Exchange, a collection of buildings in Over-the-Rhine, say occupancy is going up
as a result of the promise of the Cincinnati streetcar. The property is
now at 84 percent occupancy rate, up from 28 percent three years ago.
Dayton and Cincinnati will hold rallies Saturday showing support for Trayvon Martin,
the unarmed black 17-year-old who was killed by George Zimmerman last
year. Zimmerman was acquitted of murder by a jury last Saturday.
Richard Cordray, the former Ohio attorney general, was confirmed to direct the federal Consumer Financial Protection Bureau, the top agency that will regulate the financial institutions that played a role in causing the Great Recession.
The Hamilton County Young Democrats are hosting a free event
today to meet Democratic State Sen. Nina Turner, who’s also running for
secretary of state next year against Republican incumbent Jon Husted.
If the sun suddenly went out, humanity could take a few weeks to die out and perhaps live in Iceland.
by German Lopez
Posted In: News
at 10:52 AM | Permalink
Previously unreleased memo spurs renewed calls to reject parking lease
The city administration today disputed the findings of a June 20 memo that suggested the city is getting a bad deal from its parking lease agreement with the Greater Cincinnati Port Authority, but it has not said why the memo wasn't passed along to City Council members and Port Authority during the three-plus weeks since the administration received the memo. In its own memo released today, the city claims that the June 20 memo, which was first reported by WCPO yesterday, is outdated and makes a few technical errors.The June 20 memo from Walker Parking Cosultants, a parking consultant hired by the city, found it will be 257 percent more expensive for the new private parking operator to run the city’s
on-street parking services in comparison to what the city currently spends. It also
concludes the city isn’t getting as much revenue as other cities got
under their own parking leases.
“The on-street operating expenses shown in the model are
projected to grow at a faster rate than operating revenues,” the June 20 memo
claims. “The city should expect a private operator to run the parking
system more cost effectively than the current operation, not less
effectively. Therefore, revenues should be expected to increase at a
rate faster than expenses, not slower.”
The memo’s numbers come through estimates provided by
ParkCincy, the operating team set to take over the city’s parking meters, lots and garages
following a decades-long lease agreement between the city and the Port
In particular, the memo highlights what it claims are
extraordinary payments requested by Xerox under the deal: The private
parking operator is asking for a $627,063 fee in 2013, putting about
14.6 percent of projected net operating income to management fees.
That’s far higher than the typical 2.1 percent to 2.3 percent found in
similar parking deals in other cities, according to the memo.
The city disputed the findings in its own memo this morning.
“The information that Walker used was from an early point
in time; the deal was subsequently negotiated from that point to improve
the deal,” wrote City Manager Milton Dohoney in his own memo. “For
example, the profit margin used was based on different parking deals in
other cities that are not the same as ours. As we know, the Cincinnati
model is unique in many ways.”One such trait: Cincinnati’s parking deal includes modernizing the city’s parking meters to accept credit cards and mobile payment.
The city cited a letter from the Port Authority sent to
City Solicitor John Curp during an email exchange on July 12, the same day the Port Authority was given the June 20 memo. The letter contradicted what Port Authority CEO Laura Brunner claims are inaccuracies.
“In its memo, Walker Consulting bases its comparisons on
price, yet doesn’t qualify the information with what level of service
capabilities are included in the price,” the Port Authority’s letter
reads. “The Port Authority is basing its purchasing decisions on price,
but also level of enhancement to the on-street system that mirrors the
City’s desire to modernize these vital assets and position them to
enhance economic development opportunities downtown and in City
Besides this “‘apples to oranges’ comparison,” the Port
Authority’s letter disputes many of the technical details behind
the June 20 memo, particularly questioning some of the measurements
used and comparisons that don’t account for differences between Cincinnati’s parking lease and other cities’ agreements. It also emphasizes that contracts with Xerox and other companies
are not finalized yet.
Much of the focus is now on why the June 20 memo
was kept from City Council, the Port Authority and the public for nearly a month, given the
memo’s controversial findings about a controversial deal.
“The city administration misled the public for months on
the need for the deal, saying it was needed to avoid laying off cops and
firefighters and then they don’t do it. Now it’s keeping vital
information from the public and council. It’s a violation of the public
trust of the highest order,” Democratic mayoral candidate John Cranley said in a statement. “I am urging the
Port to reject this deal that is bad for the City.”
Cranley and other city officials, including several City
Council candidates and council members P.G. Sittenfeld, Christopher
Smitherman and Charlie Winburn, signed a letter to the Port Authority
asking the city-funded agency to reject its agreement with Xerox.
The city manager’s office couldn’t be immediately reached for comment. This story will be updated if further comments
The parking lease was finally signed by the city and Port
Authority in June after months of political and court battles. The
deal was signed even though a majority of City Council now opposes the
lease after the city managed to balance its budget without the parking
deal and without laying off cops and firefighters.City Council approved the parking lease on March 6, more than three months before the June 20 memo was given to the city administration.
In return for the lease, Cincinnati is getting a $92
million lump sum and at least $3 million in annual payments, according
to city estimates. The city plans to use that money to pay down future
budget gaps and fund development projects, including the I-71/MLK
Interchange.Update: Clarified Port Authority didn’t receive the memo until July 12.