Qualls: "Port Authority is a creature of the city... Revamped for purpose of
econ development & econ vitality, not destroying it"
City spokeswoman: city never saw bonds 1st for Fountain Square or convention center projects, either. City not bond-holder here, Port is.
Dohoney: "we're not asking council to vote blindly. We're asking council to let this go thru the proper steps to get to the final step."
Winburn asks Dohoney how pkg plan would solve longer term budget problems.
Dohoney says pkg plan would "accelerate growth" in city; "the situation we're in requires we accelerate growth right now, not later"
Dohoney: trying to balance cuts w/ disruption it would cause to city administration & people who would lose jobs; striving not to do layoffs
Winburn: could citizens do referendum? Dohoney: "you can't undo the bond deal once it's gone."
Dohoney: "we have a limited amount of time to do this."
Seelbach is asking questions about ACS/ Xerox Services.
Dohoney: "it's a period of pre-Xerox & post-Xerox. None of the allegations that have been made are specific to Xerox."
David Cummins, Xerox: 2007 audit "was discredited by the city."
Cummins: Wish media had spoken to DC officials. (In fact, several attempts made, no one returned calls despite promises to contrary)
Cummins did not address question that same president & many of same staffers still hold positions w/ company.
Current president has been with ACS/Xerox since 1996; was made president in November 2006, about 4 yrs before bought by Xerox
Under pkg deal, city gets $3M in annual payment for 1st yr; increases to $7M by 2020.
Cecil Thonas: Dohoney presented a structurally balanced budget proposal in 2009, but council made chgs & it became unbalanced again.
Dohoney re: using scare tactics on cuts: "some of the things we've done in the budget process run counter to how city managers are trained."
Dohoney: budget processes has been "a daily Excedrin moment."
Dohoney: "we have routinely used reserve accounts to balance the budget ... The ratings agencies have noticed."
Dohoney: If pkg deal is rejected, "I've essentially got 2 months to give you a balanced budget." Fiscal Year begins July 1.
Dohoney: City has valuable assets, like the railroad, "but is anyone willing to pay for them" if city tries to sell them.
BTW, although Xerox official say DC audit was "discredited," company made changes there based on its findings.
Dohoney: Provision of lease that could've hampered future rail projects has been deleted.
Lawyer hired by city: Meters could not be sold to a third party.
Laure Quinlivan disappointed that Port can't give more assurances that new jobs under deal will go to city residents.
Port's Laura Brunner: "We're starting to track local hiring through our work."
Xerox pledged to hire 40 local residents, but Quinlivan noted there will be hundreds of construction jobs, too.
Quinlivan: Some of pkg $ should be used to solve long-term budget problems. "It is clear the best way to do this is have a long-term plan."
Even if pkg plan approved, city still has $10m deficit on 2014, $15.5m deficit in 2015 & $20m deficit in 2016.
Quinlivan: Maybe ask CEOs @ Cinti Business Committee for advice on solving shortfalls.
Dohoney: "We asked you once again not to do the rollback & you're doing it ... We're limited to what we can do" to solve shortfalls.
Dohoney 2 council: "I'm trying not to do this job in a closet. I'm trying to listen 2 the direction you've given me & given me repeatedly."
Quinlivan: start "embracing attrition & shared services." Not just pkg or layoffs: "Those aren't the only 2 options."
Smitherman: annual payments "based on assumptions. If those assumptions don't play out, the city would not get $3M a year per the lease."
Lawyer: some risk exists, but "there is a very clear pattern & history on the revenues this system has generated."
Smitherman: doesn't like "consistent lack of transparency around the deal ... Particularly for a deal of this magnitude."
Meters have $12.3M annually in revenue this year, which would jump to $15.5M under 1st year of deal.
Dohoney agreed that pkg proposal isn't the only option to deal with the budget deficit.
Smitherman asked if budget plan included reducing Dohoney's salary. Dohoney: "It could."
Dohoney: Detail of budget plan hasn't gotten to that level of detail yet.