A Cincinnati-based company and one of its top executives have pleaded guilty to circumventing Ohio’s competitive bid process, a move the state’s top lawyer said cheated taxpayers out of tens of thousands of dollars.
Attorney General Mike DeWine announced on Tuesday that Quattro Inc. pleaded guilty to two felonies while sales manager Timothy O’Brien pleaded guilty to three misdemeanors. The pleas were made in exchange for cooperation with the investigation.
The company was charged with submitting multiple bids on road jobs under different company names, creating the illusion of a competitive process while really manipulating the price they’d be paid. They were supposed to provide traffic control devices, such as arrow signs, orange barrels and cones.
The company pleaded guilty to one count of entering into an unlawful combination contract, and one count of attempting to engage in a pattern of corrupt behavior. It agreed to pay $42,796 in penalties and restitution.
O’Brien pleaded guilty to three counts of engaging in a conspiracy against trade and agreed to pay $5,872 in penalties and restitution.
The charges were the first in almost three decades brought under Ohio’s antitrust statute, the Valentine Act.
Former Ohio governor Ted Strickland, who rose to the governorship with the help of the National Rifle Association, says gun rights and gun control can co-exist. The claim is in light of the massacre at Sandy Hook Elementary School in Newtown, Conn., which killed 20 children and six adults. Many have called for stricter gun control in light of the past year’s bouts of gun violence, but Republicans are typically opposed to such proposals. A recent poll from The Washington Post and ABC News found 59 percent of Americans support banning high-capacity ammunition clips, much like the ones used in the Newtown shooting. Another 52 percent back the ban of semi-automatic handguns.
Still, Gov. John Kasich isn’t changing his mind on the Second Amendment. He says he will sign a bill that allows guns in the Ohio Statehouse parking garage. The bill will also change the definition of an unloaded gun, allowing gun owners to carry loaded clips in their vehicles as long as they are in a separate compartment from the gun, and make concealed carry permits from other states easier to validate in Ohio.
Despite denials from city officials, mayoral candidate John Cranley and Councilman Chris Smitherman insist city government is trying to use the transit fund to fund the streetcar. But Mayor Mark Mallory in an op-ed for The Cincinnati Enquirer said it will not happen. Mallory said the dispute dates back to a lawsuit filed by Southwest Ohio Regional Transit Authority (SORTA), which runs the Metro bus system. The lawsuit demands transit funds be solely dedicated to SORTA.
Cincinnati’s U.S. Rep. Steve Chabot has vowed to continue trying to kill the streetcar. Even though voters have approved of the streetcar twice, Chabot, who also represents Warren County in district boundaries that were redrawn by Republicans, says he would rather focus federal funding on other projects, like the Brent Spence Bridge.
A conservative northern Kentucky lawmaker is supporting a bill that expands prisoners’ rights to DNA testing. The bill would allow a Cincinnati man to push for DNA testing that he claims will exonerate him of a 1987 rape and murder in Newport. Ky. Sen. John Schickel argued, “If DNA testing is good enough to send you to prison it should be good enough to get you out of prison.”
Cincinnati-based Fifth Third Bank bought another $100 million in stock from Credit Suisse International. The deal is part of a larger program to buy back 100 million shares.
Cincinnati State is in line to obtain $123,000 from the state government. The funding could create 51 new or expanded co-op jobs.
The United Way of Greater Cincinnati announced $50.7 million in investments for 2013, a slight increase from 2012. The increase will help boost funding to prepare children for kindergarten by 5 percent. It will also fund 288 programs at 146 agencies, with seven becoming new United Way agency partners.
The Prince Hall Shriners, which describes itself as “the world’s oldest African-American fraternal organization,” is returning to Cincinnati in 2015. The convention was in Cincinnati in 2011.
Duke Energy’s local management is being shaken up. Jim Henning will take over as president for Duke Energy Ohio and Kentucky.
Ohio Board of Regents Chancellor Jim Petro is retiring.
Did you know our solar system is sort of like a phoenix? It apparently rose from the cumulative ashes of countless stars, not one supernova.
By now, most of you have heard there was another horrible mass shooting, this time in Newtown, Conn., that resulted in the death of 20 children and six adults. While everyone is hoping this is the last time the nation has to deal with an event of unspeakable horror, it is only a possibility if we agree to do something about it. That means remembering the heroes who risked their lives and, in some cases, died that day. That means not letting the media and public drop the issue, as has been the case in the past. That means looking at more than just gun control, including mental health services. The Washington Post analyzed what “meaningful” action on gun control would look like, and the newspaper also disproved the idea Switzerland and Israel are “gun-toting utopias.” President Barack Obama also spoke on the issue at a vigil Sunday, calling for the nation to do more to protect people, particularly children, from violence. The full speech can be watched here.
City Council approved its 2013 budget plan Friday. The budget relies on the privatization of city parking assets to help plug a $34 million deficit and avoid 344 layoffs. The budget also nixed the elimination of a tax reciprocity for people who lived in Cincinnati but worked elsewhere and paid income tax in both cities, and it continued funding the police department’s mounted unit. As a separate issue, City Council voted to increase the property tax by about 24 percent, reversing a move from conservatives in 2011. CityBeat wrote about budgets at all levels of government and how they affect jobs here.
Michelle Dillingham, who was an aide to former city councilman David Crowley, will seek Democratic support in a run for City Council. Dillingham promises to tackle “industry issues of mutual interest" to business and labor and “transportation funding, family-supporting wages and workforce development.”
At a recent public hearing, mayoral candidate John Cranley proposed a “very easy” plan for the city budget. Only problem: His plan doesn’t work. In an email, Cranley said he stands by his ideas, but he added he was working with limited information and his statements were part of a two-minute speech, which “requires brevity.” He also claimed there are cost-cutting measures that can be sought out without privatizing the city’s parking assets and gave modified versions of his ideas regarding casino and parking meter revenue.
Judge Robert Lyons, the Butler County judge who sealed the Miami rape flyer case, is standing by his decision.
The Greater Cincinnati area is near the top for private-sector growth.
Jedson Engineering is moving from Clermont County to downtown Cincinnati, thanks in part to an incentive package from City Council that includes a 45 percent tax credit based on employees earnings taxes over the next five years and a $300,000 grant for capital improvements. The company was a Business Courier Fast 55 finalist in 2008 and 2009 due to its high revenue growth.
Gov. John Kasich’s Ohio Turnpike plan is getting some support from Toledo Mayor Mike Bell, but others are weary. They fear the plan, which leverages the turnpike through bonds for state infrastructure projects, will move turnpike revenues out of northern Ohio. But Kasich vows to keep more than 90 percent of projects in northern Ohio.
Gas prices are still falling in Ohio.
U.S. House Speaker John Boehner is making some concessions in fiscal talks. In his latest budget, he proposed raising taxes on those who make more than $1 million a year.
One beagle can diagnose diseases by sniffing stool samples.
Cincinnati City Council on Friday approved a budget that relies on parking privatization as a means to plug a $34 million budget deficit while also raising property taxes in 2014.
Mayor Mark Mallory opened up the council meeting with a moment of silent prayer for the 27 students and adults killed at an elementary school in Connecticut.
“I want us all to take a moment and put into perspective what we’re doing today,” he said.
Council voted to increase the property tax by about 24 percent, from 4.6 mills (a mill is equal to one-tenth of a cent) to 5.71 mills. That means Cincinnatians would pay an additional $34 for every $100,000 of their home’s value.
The vote reverses a move made last year by conservatives on council, who reduced property taxes.
Council also passed a budget that relies on $21 million from a proposed lease of the city’s parking facilities — a deal that is expected to be voted on in March. Of the proposals submitted to the city so far, Cincinnati stands to gain $100 million to $150 million in an upfront payment and a share of the profits over the 30-year lease.
“My concern about balancing this budget with a onetime revenue source by selling our parking system seems to be ill advised,” said Independent Councilman Chris Smitherman. “We don’t know how council will vote in March … but we have tied not only the budget to this one time revenue source, but we have also tied reciprocity.”
Council nixed a plan to eliminate tax reciprocity for people who lived in Cincinnati but worked elsewhere and paid income tax in both cities.
Though the budget doesn’t mention parking privatization, council hasn’t mentioned other options to close the budget deficit.
If opponents of parking privatization want to keep facilities under city control, they would have to come up with $21 million in revenue elsewhere or make $21 million in cuts.
Councilman P.G. Sittenfeld suggested using casino revenue, cutting travel expenses, downsizing the ratio of managers to workers, sharing services with nearby jurisdictions and downsizing the city’s fleet as ways to cut down the budget.
Councilwoman Laure Quinlivan, long an advocate of downsizing the police and fire departments, voted against the property tax increase in protest of what she said was bloated spending on departments that were outpacing population growth.
The budget also requires Cincinnati to accept police and fire recruit classes in 2014, regardless of whether the city gets a federal grant to fund the classes.
The budget also restores the Cincinnati Police Department’s mounted patrol, which patrols downtown on horseback. The city will use $105,000 from off-duty detail fees from businesses that hire off-duty officers. Council also voted to start charging those businesses an extra $1.64 on top of the off-duty pay.
Council also voted to shift $50,000 for repairs and upgrades to the Contemporary Arts Center to pay for maintenance and beautification at Washington Park, which is operated by 3CDC.
Area 1 Court Judge Robert Lyons ordered all case records sealed Nov. 8 after the student pleaded guilty to disorderly conduct and agreed to pay an undisclosed fine. Six days later the Cincinnati Enquirer sued Lyons in the Ohio Supreme Court, arguing that the case file is a public record.
Lyons, represented by Butler County Prosecuting Attorney Mike Gmoser, filed his answer Thursday. He denied violating the Enquirer’s claim of a constitutional right to a hearing where it could have argued against secrecy.
That Lyons is
standing his ground comes as no surprise, but his answer contains one
head-scratching statement. He — that is, Gmoser — wrote that “there was no
plea” in the case. Yet in a first-person account of the case in the Miami
University Student on Nov. 8, Gmoser
wrote that the defendant pleaded guilty. The court’s own schedule for Nov. 8
says the case was up for the entry of a guilty plea.
Former Democratic city council member John Cranley is kicking off his 2013 mayoral campaign by getting involved in budget talks. In a public hearing at City Hall last week, Cranley tried to provide an alternative to privatizing the city’s parking assets, which City Manager Milton Dohoney has suggested to pay for $21 million of the city’s $34 million deficit.
“It’s not the citizen’s job to balance the budget, but let me make it very easy for you,” Cranley said. “You have $12 million in casino money that can be used but is currently being used on pet projects, like street sculptures. The parking meters themselves produce $7 million a year. That’s $19 million. And $5 million for garbage cans. That’s $24 million. You only need ($21 million) to cancel the parking privatization plan, so I got you $3 extra million to spare.”
In short, Cranley's alternative to parking privatization is using $12 million from casino revenue, $7 million from keeping parking meters under city ownership and $5 million saved from not purchasing trash carts.
So how viable are Cranley’s ideas? In a memo, Dohoney’s
office responded. The memo points out that casino revenue is currently
estimated at $7.2 million, not $12 million, and $1.3 million is already
included in the budget for Focus 52, a neighborhood redevelopment project. That leaves casino revenues $6.1 million short of what Cranley proposed.
Regarding parking meters, Dohoney’s office says revenue
from parking meters is restricted to fund “operations and maintenance in
the right-of-way.” The memo says City Council could authorize using the money to plug the deficit, but it would then have to find
alternatives for funding operations and maintenance.
Even the trash cart proposal doesn’t work. Not buying trash carts would only save $4.7 million, not $5 million. And the plan, which is part of the city’s effort to semi-automate trash collection, is in the general capital budget, not the general fund operating budget that’s being debated. The memo concludes, “If the trash carts are not purchased, the funds would not be available to close the gap because this is a capital budget expenditure and resources supporting the capital budget cannot be used in the operating budget.”
In other words, Cranley’s “very easy” budget plan isn’t just difficult; it’s a mix of inadequate and impossible. If CityBeat was PolitiFact, Cranley’s suggestions would probably get him a “Pants on Fire” label.
It’s official: Gov. John Kasich won’t privatize
the Ohio Turnpike. Instead, the Republican governor wants to increase
tolls at the rate of inflation and issue bonds backed by the turnpike’s
profits to raise an estimated $3 billion for infrastructure projects — more than 90 percent of which will be in northern Ohio, where the turnpike is located. To
ease the short-term burden of the plan, tolls for local passenger trips
using E-ZPasses will be frozen at current levels for 10 years. In a video
unveiling the announcement, Kasich says the projects could generate an
estimated 75,000 jobs. To most, the plan, which will require approval
from the legislature, probably seems like a fairly liberal proposal: use
a public asset to leverage revenue, then use the revenue on a large,
statewide stimulus program. But Democrats are criticizing the plan
because they say the toll hike will hurt individuals, families and businesses
that use the Ohio Turnpike. Let the eye-rolling at blatant politicking begin!
City Council is getting ready to approve the budget today. The final plan has made a few tweaks to City Manager Milton Dohoney’s proposal. Parking privatization will remain, but the budget will provide a one-year stopgap in funding for Media Bridges. Previously, all of Media Bridges’ funding was being cut, which CityBeat wrote about here. The plan will also keep the mounted patrol unit, maintain income tax reciprocity and restore funding for human services and arts grants.
Will Cincinnati-based Kroger soon own Twinkies? It’s possible. The grocery store giant is considering buying Hostess brands in the aftermath of Hostess’ bankruptcy. CityBeat previously wrote about the Hostess bankruptcy here.
A study found a gap in Hamilton County’s housing stock. The report suggests the county doesn’t need any more housing than it already has; instead, it should build on current properties. The report also found vacant housing that isn’t for sale and serves no purpose has increased by 107 percent.
The Cincinnati/Northern Kentucky International Airport has unveiled a new master plan. It’s proposing $450 million in projects.
The Hamilton County recorder’s office will remain open on Fridays. The office was previously planning to close every Friday due to funding cuts, but restored funds have made staying open possible.
In its last session of the year, the Ohio Senate approved redistricting reform 32-1. The House could not take up the measure before the end of the lame-duck session, but the vast bipartisan support could be a good sign for next year’s legislative session. Redistricting is widely used by politicians to redraw district boundaries in politically beneficial ways. The First Congressional District, which includes Cincinnati, was redrawn during the Republican-controlled process to include Republican-leaning Warren County, effectively diluting Cincinnati’s Democratic-leaning urban vote in the district.
Ohio lost more residents than it gained last year, but the trend might be reversed by a growing economy. Economic improvements have already slowed down what Dayton Daily News calls an “exodus.”
A new Ohio law would increase the amount of auto insurance motorists are required to carry.
A drop in gas prices lowered U.S. consumer prices by 0.3 percent.
NASA discovered the largest river ever seen on another world. The river is on Titan, Saturn’s largest moon, and it is made up of hydrocarbons. The river is still unnamed, so I encourage everyone to email NASA to name the river the German Lopez River here.
Climate change isn’t just bad for humans. It will also hurt cuddly land mammals.
The FTC says it wants $37.5 million from Trudeau to compensate consumers of another diet book he authored. It was a best seller called Natural Cures “They” Don’t Want You Know About. Trudeau says he doesn’t have the money to pay the fine and court documents describe him as being hounded by the government. In Cincinnati federal court, Global Information Network, which goes by the acronym GIN, contends its assets should not be targeted by the subpoena because Trudeau “is not, and never has been, an owner, manager, officer or director of GIN.” But the judge said the bank records were “relevant to determining whether Trudeau has used GIN to conceal his assets.”
The FTC said there is evidence showing that the offshore company has significant financial ties with Trudeau and his wife. It cited emails and money transfers, including $261,000 in checks from GIN that went into accounts controlled by Trudeau. The government said they were Fifth Third bank accounts.
Trudeau was banned from doing infomercials that made false claims in 2004. He settled charges he misrepresented a product called “Coral Calcium Supreme,” which was based on Japanese coral and could cure cancer, heart disease, high blood pressure, lupus and other illnesses. The FTC called him a “prolific marketer” who specialized in health benefit infomercials. When he settled the case, Trudeau did not admit guilt. “This ban is meant to shut down an infomercial empire that has misled America n consumers for years. Other habitual false advertisers should take a lesson, mend your ways or face serious consequences.”
In her decision, Dlott said the Fifth Third accounts were needed in the government’s quest for the $37.5 million Trudeau owes for the consumer fraud fine: “The FTC has provided sufficient evidence establishing GIN’s bank account records are relevant to its investigation into Trudeau’s undisclosed assets and are sought for good cause.”
School report card reform is about to head to Gov. John Kasich, who is likely to sign it. The bill, which places higher grading standards on schools, passed the Ohio Senate yesterday with some minor tweaks. The Ohio House is expected to approve the bill again, and then Kasich will need to sign it for it to become law. In an early simulation of tougher report card standards in May, Cincinnati Public Schools dropped from the second-best rating of “Effective” under the current system to a D-, with 23 schools flunking and Walnut Hills High School retaining its top mark with an A.
The governors of Ohio and Kentucky agree tolls will be necessary to fund the Brent Spence Bridge project. The governors also said there will be a financing plan by next summer and construction will begin in 2014. Kasich and Ky. Gov. Steve Beshear met yesterday with U.S. Secretary of Transportation Ray LaHood to discuss funding for the bridge project.
Sewer rates in Hamilton County will go up next year, but not as much as expected.
Cincinnati has 1,300 properties awaiting demolition.
With same-sex marriage likely coming on the ballot in 2013, a Quinnipiac University poll found Ohio voters thinly oppose its legalization 47 percent to 45 percent, but it’s within the margin of error of 2.9 percent. A Washington Post poll in September found Ohioans support same-sex marriage 52 percent to 37 percent — well outside of the poll’s margin of error of 4.5 percent. CityBeat recently wrote about the same-sex marriage legalization in Ohio here.
The same poll found Ohio voters deadlocked on whether marijuana should be legalized with 47 percent for it and 47 percent against it. The results are slightly more conservative than the rest of the nation. Washington state recently legalized marijuana and same-sex marriage in the same day, and the world didn’t end.
Ohio gained approval on a coordinated Medicare-Medicaid initiative that will change funding for low-income seniors who qualify for both public health programs. With the go-ahead from the federal government, the plan will push forward in coordinating Medicare and Medicaid more efficiently to cut costs.
But on the topic of a Medicaid expansion, Ohio will not make a final decision until February. As part of Obamacare, states are encouraged to expand their Medicaid plans to 133 percent of the federal poverty level. If they do it, the federal government will pick up 100 percent of the tab through 2016. After that, federal funding drops annually, eventually reaching 90 percent for 2020 and beyond. Previous studies found states that expanded Medicaid improved lives. Another study found Obamacare’s Medicaid expansion saves states money in the long term by reducing the amount of uncompensated health care.
Cleveland's The Plain Dealer says Gov. Kasich will not privatize the Ohio Turnpike, but he will ask for a toll hike to help finance new projects. Kasich will officially announce his plans later today.
With opposition from law enforcement, a Senate committee is pushing ahead with a bill that lessens restrictions on gun-carrying laws.
Redistricting reform will soon be taken up by the Ohio Senate. The measure passed committee in an 8-1 vote. Redistricting is often used by politicians to redraw district borders in politically beneficial ways.
Gov. Kasich signed into law a measure that cracks down on dog breeders in Ohio. The measure has long been pushed by animal advocates, who say lax regulations for puppy mills have made the state a breeding ground for bad practices. CityBeat previously wrote about how these bad practices lead to abusive dog auctions in Ohio.
Homosexuality may not be in our genes, but it may be in the molecules that regulate genes.
The Ohio Turnpike will remain a public asset, according to The Columbus Dispatch. Many Ohioans have been worried Gov. John Kasich would attempt to privatize the Turnpike in order to pay for transportation projects; instead, the governor will try to generate revenue for state infrastructure projects elsewhere, perhaps by using the Turnpike’s tolls. Kasich will unveil his full plans Thursday and Friday.
The asbestos lawsuit bill is heading to Kasich to be signed. The bill attempts to curb duplicate lawsuits over on-the-job asbestos exposure. Supporters of the bill say it will prevent double-dipping by victims, but opponents say the bill will impede legitimate cases. Ohio has one of the largest backlogs of on-the-job asbestos exposure cases.
City Manager Milton Dohoney has released some of the potential bids for the city’s parking services, and one bidder is offering $100 to $150 million. Dohoney says the budget can only be balanced if parking services are privatized or the city lays off 344 employees. But Councilman P.G. Sittenfeld is speaking out against the privatization of the city’s parking services. In a statement, Sittenfeld said, “Outsourcing our parking system robs the city of future revenue, and also will mean higher parking rates, longer hours of enforcement, and more parking tickets.”
LGBT rights are becoming “the new normal,” but not for Western & Southern or American Financial Group. In the 2012 Corporate Equality Index, the Human Rights Campaign gave 252 companies a 100-percent score for LGBT rights. Cincinnati-based Procter & Gamble got a 90 percent, Macy’s got a 90 percent, Kroger got an 85 percent, Fifth Third Bank got an 85 percent, Omnicare got a 15 percent, American Financial Group got a 0 percent and Western & Southern got a 0 percent. The rankings, dubbed a “Buyer’s Guide,” can be found here.
The Sierra Club says Cincinnati has some of the best and worst transportation projects. In its annual report, the environmental group praised the Cincinnati streetcar, claiming the transportation project will attract residents and business owners. But the organization slammed the Eastern Corridor Highway project because of its negative impact on the Little Miami River and the small village of Newtown. The Sierra Club says the purpose of the report is to shed light on the more than $200 billion spent on transportation projects every year.
University of Cincinnati President Santa Ono is getting a 10-year contract.
The disease-carrying Walnut Twig Beetle has been discovered in southwest Ohio. The beetle is known for carrying Thousand Cankers Disease, which threatens the health of walnut trees. So far, no trees have been determined to be infected.
Ohio Gov. Kasich, Ky. Gov. Steve Beshear and U.S. Secretary of Transportation Ray LaHood will meet today to discuss funding for the Brent Spence Bridge project. If the bridge project starts in 2014, northern Kentucky and Cincinnati could save $18 billion in fuel and congestion costs, according to the Build Our New Bridge Now Coalition.
Following the defeat of Issue 2, the Ohio Senate is taking on redistricting reform, but opponents in the House say there isn’t enough time to tackle the issue. The current redistricting system is widely abused by politicians on both sides of the aisle in a process called “gerrymandering,” which involves politicians redrawing district lines in politically beneficial ways. The First Congressional District, which includes Cincinnati, was redrawn during the Republican-controlled process to include Republican-leaning Warren County, heavily diluting the impact of Cincinnati’s Democratic-leaning urban vote.
Ohio employers are more aware of wellness than employers in other states, a new survey found. Wellness programs are one way employers can bring down health-care expenditures as cost shifting feels the pinch of diminishing returns.
However, Ohio ranked No. 35 in a nationwide health survey.
Ohio district didn't win federal Race to the Top education funds in the latest competition.
Internet cafe legislation is dead for the year. Ohio Senate President Tom Niehaus announced the legislation, which essentially puts Internet cafes and sweepstakes parlors out of business. State officials, including Attorney General Mike DeWine, have been pushing for regulations or a ban on the businesses because they see them as a breeding ground for criminal activity.
The final 2011-2012 school report cards will not be available until 2013. The report cards were originally delayed due to an investigation into fraudulent attendance reports.
Michigan may have approved its anti-union right-to-work law, but Ohio is not eager to follow. State Democrats are already preparing for a possible battle over the issue, but even Republican Gov. John Kasich says he’s not currently interested in a right-to-work law.
The Ohio Environmental Protection Agency is loosening hazardous waste reporting requirements for companies. If the rules go into effect, regulated facilities will report on hazardous waste once every two years instead of once a year. The rule changes will get a public hearing on Dec. 19 in Columbus.
In a question-and-answer session Monday, U.S. Supreme Court Justice Antonin Scalia asked, “If we cannot have moral feelings against homosexuality, can we have it against murder? Can we have it against other things?” (Hint: The answer to both questions is yes.) The Supreme Court recently agreed to tackle the same-sex marriage issue. CityBeat wrote about same-sex marriage in Ohio here.