Sunday, December 25, 2011

Cincinnati Business Courier covers Streetcar Utility Relocation Cost issue exceptionally well

The Cincinnati Streetcar project is bad for all kinds of reasons: It's impractical, serving no transportation need, it is expensive, far more expensive than any benefit obtained, and, most importantly, Cincinnati cannot afford it, especially right now.

Further, what will inevitably unfold over the coming months is that Cincinnati politicians, bureaucrats and taxpayers will be overwhelmed with predicted and unpredicted cost overruns from the Streetcar project.

Because our local politicians and bureaucrats are committed to proceeding with this project despite all practical reality -- and are willing to saddle taxpayers with the adverse consequences of those decisions -- the role of the "fourth estate," the media, in exposing their misdeeds and holding them accountable is utterly critical.

Thus, COAST has been appreciative of the willingness of Lucy May and Dan Monk at the Cincinnati Business Courier to expose the failings in Streetcar planning, despite a secretive City Hall that refuses to address the problems head on.

As background, City planners to date have willfully ignored the costs of utility relocation in their streetcar budgeting.  How can they do that, when someone has to pay these costs?  City planners apparently either (a) intend to start construction and spring the "surprise" cost overruns on taxpayers when it is "too late" to say "no" or (b) have Duke Energy, MSD, Water Works, Cincinnati Bell and others pass the costs onto ratepayers, a hidden Streetcar tax hike.

Well, after the Cincinnati Business Courier exposed this flaw in Streetcar planning this summer, County Commissioner Chris Monzel introduced a motion to prevent spending MSD funds on relocating utilities for the Streetcar project (Commissioners control the MSD budget, although the City runs MSD day-to-day).  The resolution passed unanimously.

This action by Commissioners basically check-mated Mayor Mallory's carefully laid plans, as no rational planner would build the Streetcar on top of existing sewer lines, and the City can't afford to move then without shifting the costs to MSD ratepayers.

Well, City planning went from bad to worse, with the entirely irresponsible decision to actually do that -- build the Streetcar on top of sewer lines, many of them more than 120 years old and constructed of brick. 

Then MSD engineers did a "what if" study -- what if MSD did pay the cost of utility relocation to accommodate the Streetcar?  Lo and behold, the cost came in at $7.9 million, 31% higher than the previous $6 million estimate and 260% above the $3 million the City is willing to put towards the cost.

And that's just the MSD portion of the utility relocation cost equation.

Duke Energy says the cost just for their lines will range from $9 to $15 million more than the City has budgeted, Cincinnati Bell's numbers range between a $3 and $8 million overrun, and the folks at Water Works (controlled entirely by the City) have already agreed to pass onto ratepayers $6 million in cost overruns.  So far, Duke Energy has joined with MSD in saying "over our dead body," in terms of willingly passing these expenses on to ratepayers.

Thus, the utility relocation cost component of the project is turning into a $20 million+ disaster for the City's taxpayers, and construction has not even started.  It is also an engineering catastrophe of significant importance that the City has planned.

The Cincinnati Business Courier has been on top of all of these developments that have mostly been ignored by the rest of Cincinnati media.  (WXIX recently covered a portion of this developing story as well.) 

Cincinnati taxpayers and utility ratepayers throughout the region stay tuned for developments in this saga.

COAST Top 10 best acts of 2011

On the topic of naughty and nice, COAST also wants to celebrate the nice deeds of voters and our elected officials in 2011.  Warm "presents" of thanks for their vision and leadership:

10)  Governnor Kasich's cutting $52 million in fund for the streetcar.  Great way to start the year.

9)  Senator Shannon Jones bold legislation to prevent all state funding for the Cincinnati Streetcar boondoggle.  The legislation passed the House and Senate and was signed into law by the Governor.

8)  Commissioner Chris Monzel for his resolution modifying the MSD budget to stop ratepayers from footing the bill for sewer relocaiton costs associated witht he Streetcar project.

7)  Cincinnati City Council for preserving the property tax rollback, at least for one more year.

6)  Cincinnati voters for outlawing a trash tax by the passage of this year's Issue 47.

5)  Judge Steve Martin for stopping Laure Quinlivan in her tracks from spending tax dollars for her re-election campaign.

4)  The Cincinnati Business Courier for their dogged coverage of the Streetcar boondoggle.

3)  Ohio voters for their passage of Issue 3, our State's resounding rejection of ObamaCare.

2)  The Ohio legislature's passage of an historic repeal of the Ohio Estate Tax, and the leadership of Dan Regenold, Ron Alban and Jack Boyle that made it happen.

And the number one "gift" of thanks goes to....

drum roll please.....

1)  The thousands of activists throughout Ohio who have participated in these and other battles for limited government, COASTers, Tea Partiers, 912ers, those from Americans for Prosperity, Americans for Tax Reform, Freedom Works and dozens of other groups that are stopping the hoards of "occupiers" in Congress, our statehouses, Court Houses and City Halls across the nation from further enslaving us to their big-government agenda.

Merry Christmas everyone!

COAST's Top 10 Naughty Acts by politicians and voters in 2011

As Santa delivers presents on Christmas Day, we hope he takes into account the naughty acts by politicians and voters throughout the year. For your reading pleasure, COAST has assembled its Top 10 instances of foolish excesses of the voters and politicians in 2011:

10) The voters electing to Cincinnati City Council a liberal, left-wing, big-spending cabal led by Roxanne Qualls, and including big-spending newcomers of P.G. Sittenfeld, Chris Seelbach and Yvette Simpson. Council's more rational members, Wayne Lippert, Amy Murray, Chris Bortz, and Leslie Ghiz were sent packing.

9) The City Manager and Mayor trying for the third time to implement a trash tax. This expense is already included in your property tax and earnings tax...a little case of double dipping by Dohoney and Mallory. Not only did the Council not approve it, but the voters in November added a Charter Amendment outlawing this form of taxation.

8) The City Manager and Mayor trying for the fourth time to repeal the City's Property Tax Rollback. Tsk, tsk, tsk. This cash grab from homeowners trying desperately to avoid foreclosure in this depressed economy failed to pass Council.

7) City Council and Mayor Mallory failing for the sixth year of the Mallory mayor-ship to seriously cut spending at City Hall or implement a structurally balanced budget. As we have seen nationally and internationally, debt comes back to bite you. Someday soon, the day of reckoning is coming.

6) Mayor Mark Mallory taking home $500 per month for a car allowance for his Lincoln Towne Car that was never approved by the Council. COASTer Mark Miller has a suit pending in front of Judge Marsh on the topic.

5) The Hamilton County Commissioners for reducing the property tax rollback that was promised as a part of the stadium tax deal cut in 1996.

(To clarify: the 2010 Commission on a 2-1 vote reduced the promised rollback for tax year 2011. In recent weeks, the 2011 Commission maintained the rollback on a 2-1 vote for tax year 2012)

4) Council member Laure Quinlivan using her office staff and equipment to run her Council re-election campaign. Thanks to a COAST taxpayer action, Judge Martin has ordered her to pay back the City $1,500 for stealing City resources and enjoined her from ever doing it again.


3) The approval by City Council of $4.1 million to enclose the atrium at City Hall. COAST will explore this boondoggle further, but suffice it to say they pissed this money away.

2) Spending by Mayor Mark Mallory of $8 million this year from for streetcar planning and engineering. Even worse, it's bad engineering, calling for the 40-ton leviathons to rumble ON TOP of 100-year old brick sewer lines. Freaking brilliant!

Drum roll, please.....

And the single, number one foolish act of 2011 belongs to ....

1) The voters who rejected Senate Bill 5 at the polls, the one proposal that could have righted state government and brought into control union contracts for the State of Ohio and thousands of local government units throughout the state.

So, big lumps of coal for Mayor Mark Mallory, City Manager Milton Dohoney, and Laure Quinlivan for abusing their offices shamelessly. Smaller lumps of coal for the voters, who did a few good things this past year as well.