Issue 109 – An Issue Of Accountability

Issue 109 is an Emergency Levy of 9 mills for 10 years. The mailer from the Euclid School Board read, “We need Issue 109… to improve the quality of education for our children and our city.” History has shown that passage of 109 will not improve our schools.

Before I explain, let me say this. The vast majority of the parents and guardians of our students love their children. They want the best education and learning environment possible for them.

In contrast, the Euclid Schools have too long practiced the soft bigotry of low expectations. They operate under the assumptions that if you come from a single parent household or if you’re low income or if you’re African American you cannot be expected to learn. These assumptions are false. They discourage our youth and insult the adults who raise them. They perpetuate failure and weaken our neighborhoods.

Broken Promises: In 2008 the Schools promised that if voters passed a 6.9mill levy, schools would improve. Voters trusted the leadership and a $100,000 home saw its taxes increase $241.50 a year. Schools did not improve.

In 2009-10 Euclid Schools met only 4 of 26 standards – 10^th Grade Writing, 11^th Grade repeat tests Reading & Writing and Attendance. Adequate Yearly Progress was Not Met.

In 2010-11 Euclid Schools met 5 of 26 standards – 10^th Grade Reading & Writing, 11^th Grade repeat tests Reading & Writing and Attendance. Adequate Yearly Progress was Not Met. Graduation Rate 62.4%.

In 2011-12 Euclid Schools met 5 of 24 standards - 10^th Grade Writing, 11^th Grade repeat tests Reading, Writing, Math & Social Science. Adequate Yearly Progress Not Met. Graduation Rate 66.5%. 

Euclid Schools rank 3^rd from the bottom, above Cleveland and East Cleveland.

New Schools-New Names-Clean Slate: In 2009 the Euclid Schools asked for 3.5mills to raise $40 million to build 4 new schools. Voters were told new schools would cut operating costs about $1 million a year and scores would improve. Voters trusted the leadership and a $100,000 home saw its taxes increase $122.50 a year.

The first step in improving scores was to wipe the slate clean. Euclid Schools closed Indian Hills, Lincoln and Memorial schools. They re-named the new schools Arbor (Roosevelt), Shoreview (Upson), Bluestone (Thomas Jefferson) and Chardon Hills (Glenbrook). This move accomplished three things. It eliminated 3 failing schools. It wiped out previous years’ report cards. It cut off vouchers for students attending private schools. After this year, those students will be forced to return to the failing system to hopefully improve the district’s progress. When times are tough, you do what you gotta do.

Issue 109: If passed, the 9mill levy will cost the owner of a $100,000 home an additional $315 a year. This is on top of the net loss to homeowners whose values plunged but whose taxes will remain basically the same (see my HR920 Post) and the increase in shared income tax revenues. To justify the tax increase, the Euclid School Board lists 8 things the levy will accomplish.  

- Insure all students read at grade level by end of 3^rd grade. 

- Increase tests scores and graduation rates; and Improve college and workforce readiness.  

- Improve behavior and create a positive learning environment.   

- Ensure high quality instruction; Increase technology in the classroom; Work with local businesses to offer real world experience.  

- Efficiently and effectively manage district resources.

The net cost on an average home is .40 a day ($146/yr increase)

The mailer, signed by every Board member, reveals the following sad facts:

- Our kids are being passed to the next grade before they’ve mastered their subject matter

- Overall, their behavior is bad

- The quality of instruction is inadequate

- The district’s handling of resources is inefficient and ineffective

- The average home in Euclid is now worth only $47,000.

By the Board’s own admission, Euclid Schools are failing our students and their guardians and the tax payers who support them.

If you really want to improve our schools, here’s what you can do:

-        Vote No on 109. Give the schools one year to show taxpayers that the new schools and new leadership are living up to their promises of improved scores, a positive learning environment and better behavior.

-        Hold the schools accountable for their past promises and for the trust voters have placed in them. If there is improvement, then come back and ask for money. They will have earned it.

-        In Nov 2013 replace the current Board that has by its own admission, overseen the inefficient and ineffective use of district resources; and has failed to implement policies that improve student behavior, academic achievement and graduation rates.

It’s time to raise our expectations and our standards for the Schools, for the students and for the teachers. It’s time for accountability.   

HR920 and Your Property Taxes

Most homeowners in Euclid saw their property values go down significantly. Mine went down 40%. Don’t expect to see a corresponding drop in your property taxes, though. Only inside millage which tops out at 10 mills and the Street Lights assessment adjust up or down with property values. All voted millage is held to the dollars the levy at the time of passage was designed to generate. That’s because of a state law HR920. The purpose of HR920 was two-fold:

-       - To protect property owners during higher value/inflationary times from paying more than voters approved

     - To protect the entity during down times from receiving less than voters approved

How HR920 Works: Let’s use the Rec Dept as an example. In 1976 two charter levies were passed totaling 2mills. The value was about $300,000. The $300,000 was guaranteed and fixed. Over the next 35 years, as property values rose, the Rec Dept income remained fixed at $300,000 in order to protect property owners. In 2011, those 2mills residential effective rate had dropped to .513341 mills. That was the millage required to meet the $300,000.

HR920 applies to the following funds. The voted millage is followed by 2011 effective residential millage in parentheses. County Jail: .17m (.17) expires 2012; Mental Health: 3.9m (3.841628); County Health: 2.9m (2.856595); Health & Welfare: 4.8m (4.8) expired 2011; Metro Parks: 1.8m (1.818768); Library Operating: 4m (4); TriC: 3.1m (3.082039); Port Authority: .13m (.103340).

Euclid Schools is made up of the 1995 Library Bond, Permanent levies from ’76, ’79, ’85, ’88, ’92, ’99 and ‘05, a 2008 Emergency 10yr levy, and the 2009 New Schools Bond. Added up, they total 88.4m (53.314689).

This is the part of your property tax that does not change with property values. The grand total of millage impacted by HR920 is 122.850 voted mills. The 2011 residential effective rate based on the value of Euclid is 80.3619. After the Owner Occupancy and Residential Rollbacks, the effective rate drops to 71.59 mills. The devaluation of Euclid will likely raise the effective rate to insure funds voters approved at the time of passage. It should not raise your dollars paid though.

Thanks to HR920 property owners have been protected for the last 35 years. Now the tables have turned to protect the funds approved by voters. As a result, don’t expect your property tax to drop by much more than a few bucks. You can find a breakdown of voted millage by visiting the Cuyahoga County Fiscal Officer’s website. Under Schools and Local Govt Data, open the documents DTE 515 and DTE 27.

Follow the Money

Thanks to Council questions and the public's concern, an Executive meeting has been called for Mon Aug 27 at 7pm to discuss the purchase price of Miles Carter's LLC's parcel, the old Alexanders. After reviewing public documents leading up to the purchase for $900,000, I can’t help thinking I’m watching a Cups and Balls magic trick. In the famous trick, there are 3 balls and 3 cups. Eventually all 3 balls end up in one cup. The secret to the trick is one cup has an extra ball that the audience does not see. Without the extra ball, the trick can’t work – check it out in the Secret to Cups and Balls.

Before I explain, I encourage you to read Councilman Langman’s latest post on Wd 7 Blog to understand how the purchase process normally works. 

Ready for the trick now? Here's what Law Dir. Frey, CS&ED Dir Pietravoia and Mayor Cervenik focused Council’s attention on (keep your eyes on the balls, now):

BALL #1- McDonalds: In the fall of 2011, rumors surfaced that McDonald’s was moving to the Alexanders parcel. A set of plans was to be presented at the Nov 2011 Planning & Zoning meeting. The Development Dept was working with McD to get the project plans in front of P&Z asap. By then the City had an idea it might need the parcel, but still thought it could improve the Wastewater Treatment Plant (WWTP) without Alexanders.

BALL #2-the EPA: In January of 2012, the City presented a plan at the Jan 18 Service Committee meeting. That’s when it was revealed to Council that the residential properties abutting WWTP would have to be acquired. A furor erupted. By the time the Mayor met with affected residents on Feb 23 a whole new plan was in place. This new brilliant plan would not only save their homes, but in the long run, it would reduce the City’s expenses. Of course, it would be a lot more expensive to implement and now the City would need the Alexanders parcel. Focus shifted from City siezure to EPA approval.

BALL #3-the Appraisal: Sometime early this month, Council heard from the City that EPA approved the new plan. The City’s need for Alexanders caused Carter’s deal with McDonalds to fall through. Just prior to the Aug 8 meeting, Council learned that two appraisals had been done – one for the vacant parcel ($715,000) and one for the land assuming a McDonalds lease was in place ($900,000). In short, because McDs was ready to move on a lease/purchase, Frey told Council that Carter should be recompensed $900,000.  

Now I told you at the beginning that the success of the trick requires a 4^th ball that the trickster hides from the audience. Here’s what an examination of public documents shows:

BALL #4- The Inside Track: The first discussion of the City’s need for the Alexander’s parcel was in late 2009-early 2010 prior to the March 2010 submittal of a plan to the EPA. The Alexander’s parcel was not part of the submission, but the City was prepared to go that route. In Dec 2010, Miles Carter’s LLC purchased the Alexanders parcel for $600,000. Three months later in March 2011, Carter contributed $1,000 to Mayor Bill Cervenik’s re-election. Prior to that the last donation I could find from Carter to Cervenik was $50 in 2003.

By Summer 2011 the City knew the EPA would not accept the City’s original plan. It also knew it would have to acquire the Alexander’s parcel. In Sept 2011 Carter contributed another $500 to Mayor Cervenik’s re-election. Through Dec of 2011 the City continued the pretense that McDonalds was a done deal. It continued the pretense that EPA was leaving the City in the dark. Late in 2011 the City hired an appraiser. At this point, Carter probably knew more about the City’s plans than Council did.   

Now remember, for the trick to work, attention must be focused on the three visible balls while all the while, the fourth ball is controlling the outcome.

EXECUTION: At the Aug 8 Special Council Meeting, Law Dir Chris Frey did his magic trick before seven Council members. He kept Council focused on McDonalds, the EPA and the Appraisals they had not seen. Four Councilpersons applauded the trick by voting YES to the $900,000 price – President Holzheimer-Gail, Wd 1 Caviness, Wd 5 McLaughlin and Wd 6 O’Hare. But three Councilpersons wanted a closer look at the Cups and Balls trick and voted NO – Wd 2 Scarniench, Wd 3 Jones and Wd 7 Langman. 

Dir. Frey’s Cups & Balls trick would have been a complete success had Wd 8’s VanHo not left the meeting prior to the vote. With no super-majority, that forced the legislation to go from an ‘emergency’, executed immediately, to a 30-day wait before the Mayor could sign off and the purchase agreement be executed. There’s still time for Council to put legislation on the Sept. 4^th agenda, rescind its vote and put the purchase price on hold. Should Miles Carter be fairly compensated for the Alexanders parcel? Absolutely. Should the price be more than he paid? Absolutely. But Council owes it to the rate payers who are financing this deal to honor the process and negotiate the best deal on their behalf. Hope to see you Monday night in Council chambers. 

Oh What a Web Frey Wove

On August 8, Council approved paying $900,000 for the old Alexanders parcel to be used for the Wastewater Treatment Plant improvements required by the EPA. The legislation will go into effect 30 days from passage unless Council rescinds its vote.

First, a correction to the original post Pay To Play – It was Wd 7 Councilman Langman, not Council President Holzheimer-Gail who fronted the idea to put off a vote until Council had more info. That idea was voted down and the price approved by a narrow 4-3 vote (see Pay To Play post).

In the 12 days since the legislation passed, there have been a number of interesting developments:

- It was Wd Councilman O'Hare that pushed to end the debate and vote. The day after he voted FOR the purchase at $900,000, O’Hare drew up a list of questions for Law Director Frey relating to the appraisals which Council received after the vote and the MacDonald’s lease. Too little too late Councilman.

- Some members of Council have asked for a follow up meeting to review the purchase based on new info received. In response, Council President Holzheimer-Gail sent out an email on Aug 13 saying she would hold an Executive Committee meeting, but would like it coupled with a Service Committee meeting. That meeting has yet to be scheduled. The issue though is not whether Council should approve purchase of the property. The issue is whether Council should pay almost $200,000 more than the property was appraised at. Given the 30 day window on the legislation, this matter should be considered as soon as possible.

- Regarding the appraisal that was the basis for the $900,000 offer, the Jan 6 supplemental appraisal assumed, “that the lease between 36907 Westminster Road LLC and MacDonalds USA LLC has been fully executed (signed) and was effective January 6, 2012.”  The assumption was wrong. In an email to Council Dir. Frey admitted that, “The McDonalds lease was never completed…”.  The price also reimburses Miles Carter’s LLC (the Seller) for demolition of Alexanders and carrying costs.

- The second and lower appraisal was submitted twenty days later on Jan 26, 2012 and valued the parcel at $715,000.

- Despite Director Frey’s insistence that commercial values in Euclid won’t change that much, the Plain Dealer reported Aug 20^th that in fact, commercial properties in Eucld DID go down.  

Councilperson Scarniench and Langman made a good point when they asked Law Dir. Frey why Council had not received the appraisals for their review. Frey’s response was to admit that it would have been better for Council to have appraisals, but since no one asked for the appraisal, he didn’t bother to send them. Well, given the fact that the appraisals were 7 months old and the higher appraisal was based on a faulty assumption, I can see why Frey was loathe to provide Council with the info. Council should have done its due diligence though. It should have asked for the appraisals before voting.

Councilpersons Caviness and McLaughlin are on record as saying that even if they saw the appraisals, they would probably go along with the price based on the Law Director’s argument. I wonder if they still feel that way.

In reviewing the discussion, it should be pointed out that the reason for the rush was so the City could apply for a loan from the OH Water Development Authority (OWDA) to buy the property in time for its August meeting. The loan will be financed with the sewer rate increases. The parcel will be used for the Headworks and Sludge Force Main which have EPA approval. Engineering studies need to start.  It’s a 6 year project. Why couldn’t Council wait One More Week before voting?

The fact that Caviness, McLaughlin, O’Hare and Holzheimer-Gail approved the purchase price without enough information to make an informed decision does not speak well to the council members’ judgment.  Councilman McLaughlin even went so far as to say that while every dollar counts, he shrugged off opposing Council members’ concerns by saying this is only .1% of the total project cost. This logic for overpaying by nearly $200,000 is unsettling at best and irresponsible at worst.

Council’s approval of the $900,000 purchase price was based on 1) A faulty assumption; 2) a 7-month old appraisal and 3) the need to apply to OWDA for a loan in time for its August meeting. The irony is that OWDA meets every month. By stripping the ‘emergency’ out of the legislation, the City can’t meet the August date anyway.

New sewer rate increases are coming as early as next month. If you’ve got 49 minutes, I encourage you to watch the meeting on ECTV Video On Demand. Discussion on the purchase begins two hours and four minutes into the meeting. If after watching it, you’re as uncomfortable as I am with the way 4 members of Council neglected their due diligence duty I encourage you to contact your council person and urge them to call a meeting to review this decision. Then attend the meeting and voice your concerns. It’s your money they’re spending.

Pay To Play – Euclid Style

Last March Council voted to raise the sewer rates some 32% to cover the cost of WasteWater operations, waterlines and to begin bringing the City into compliance with the EPA.  



Despite a $715,000 appraisal, on Aug 8
Council approved purchaseing
 Alexanders for $900,000 4 to 3



A key element of implementation of the long term plan is the old Alexanders Restaurant property. An underground retention basin will use the current City-owned land plus part of Alexander’s to hold excess storm water until the plant can process it properly. That’s the simple version. The City can acquire the private parcel thru a negotiated purchase or thru use of eminent domain for a public purpose. That being said, the property is pretty useless to the current owner Miles Carter who incorporated 36097 Westminister Road, LLC in November 2008.

Last night Council narrowly approved the purchase of Alexanders for $900,000. The parcel is 53,057sq.ft - a little over one acre. By comparison, in 2010 the City purchased St. Roberts’ 8 acres for $675,000.

Carter’s LLC bought the parcel in Dec 2010 for $600,000. The LLC spent much of 2011 maneuvering a deal to get McDonalds in there.

Miles Carter is a smart businessman. He owns the shopping area across the street. Carter probably knew the City was in negotiation with the EPA regarding improvements to the Wastewater Treatment Plant. So why did he purchase a property that was potentially worthless depending on what the EPA and the City settled? Why did he pursue MacDonalds to buy the parcel for $1.1 million? To my way of thinking, there are 3 possibilities.

1- The City never informed Carter of the risk. 2- Carter knew the risk, but hoped to dump the land and make a cool half million before MacDonalds learned of the risk. 3- There was a tit for tat agreement between the Mayor and Carter.   

In 2010 when Carter was negotiating for the Alexander’s property, the Development Dept had to know about it. If the Administration knowingly let Carter buy the land and pursue a MacDonalds deal without informing him that the City might need it for public use – well, that doesn’t look good for the City.

On the other hand, if the City did inform Carter of the potential seizure and Carter lured MacDonalds in without informing Corporate so he could up the value of the land, well, that doesn’t look good for Carter.

On the third hand, if the Mayor struck a deal with Carter to increase his profits in exchange for a contribution, well that doesn’t look good for the Mayor. It’s also possible that after years of watching the Mayor reward contributors like CT Consultants, K&D, Spies and Mavec with huge profits and sweet deals at taxpayer’s expense, maybe Carter decided to try his hand at Euclid’s particular form of Play to Play.

In 2011 Miles Carter made two contributions to Bill Cervenik’s campaign totaling $1,500. Not a big deal except that Carter hadn’t contributed anything more than $50 to Cervenik for years. That $1,500 donation very well could have gotten Carter an extra $150,000 profit. 

The City had two appraisals done on the Alexander’s property. The first came in at $715,000. The second appraisal came in at $1.1 million and was based on MacDonalds’ moving in. The City offered Carter $900,000 to compensate for MacDonalds, demolition of Alexanders and carrying costs. But MacDonalds had pulled out at the City’s recommendation back in December of 2011. 

No buyer, no property value – Carter was stuck. So why didn’t the City negotiate for the lower price?

Well anyway, enough questions were raised last night that Holzheimer-Gail suggested a second meeting 8/13. Wd 5 McLaughlin - a guaranteed vote for the Mayor - though, wouldn’t be able to make the meeting. Without McLaughlin to hold his hand, no one was sure how Wd 6 O’Hare would vote. It was a risk the Council Prez could not take. A ‘compromise’ to change the legislation from an ‘emergency’ where the Mayor could enact it immediately to a simple ordinance that required a 30 day wait before signing was offered. But Council would have to vote on it right away. It passed 4 (Caviness, McLaughlin, O’Hare, Holzheimer-Gail) to 3 (Scarniench, Jones, Langman). Lynch is still in India and Van Ho had left early.

When I asked Wd 1 Councilwoman Caviness why she cast the game-changing vote instead of insisting on trying to negotiate a lower price, her response was that by changing it from emergency to a general ordinance, the City could spend the next 30 days negotiating a lower price. The woman has no clue how legislation works. Pretty scary.

When I asked Wd 6 Councilman O’Hare why he didn’t ask if the City had tried to get the parcel for less, he said there was no point because of the MacDonalds $1.1million deal. Not as scary, but definitely shameful.

So, in 30 days unless something changes, Miles Carter’s LLC will have turned a 50%, $300,000 profit on a parcel in a little over a year and a half, in a market that’s not moving much, for land that cannot be developed. Financing for the million dollar loan will be made with the money raised from the recent sewer increases. 

It’s Gonna Be A Long Winter

Last night’s (8/8) Special Council Meeting had 11 items on the Agenda. There were no Administration communications. No Council comments after. No public comments after. There were 8 council people present and about six folks who spoke to the Agenda. And the meeting still lasted three hours. And people wonder why we still don't have a Dog Park....

An American Nightmare

So you want to be an entrepreneur. Good luck. If your enterprise poses a threat to big business with strong lobbies, you don’t stand a chance. Just ask Phil Accordino of Roll Your Own Tobacco.

If you don’t know what I’m talking about, on Friday July 6, Obama signed into law the $105 billion Highway Bill. The law will effectively destroy the RYO industry. It’s been in the news from The Plain Dealer to The Wall Street Journal to The Huffington Post. It’s produced more outrage than Fast & Furious.

THE AMERICAN DREAM: In 2009, Congress raised the tax on roll-your-own cigarette tobacco from $1.0969/pound to $24.78/pound. Pipe tobacco increased from $1.0969 to $2.8311/pound. Big difference and RYO shops across the country saw an opportunity to save smokers a lot of money while making money for themselves. They switched to pipe tobacco.   

The pipe tobacco didn’t come from the Big Boys, though. In large part, it came from U.S. Flue-Cured Tobacco Growers Inc. The Raleigh, North Carolina-based group is a cooperative of farmers.

Meanwhile, Accordino’s 42 employee company located outside of Youngstown saw an opportunity as well. RYO manufactured and sold rolling machines across the country for about $32,000 a machine. Prior to the Highway Bill, there were about 1,000 RYO shops around the country employing about 5,000 people.

Cigarette smokers saw their costs go from $52/carton down to $23/carton, much needed money that could be used to pay bills or buy food.

All parties were living the American dream. And then the lobbyists came. Altria, parent company of Philip Morris, American Cancer Society and the National Association of Convenience Stores cried foul and demanded RYO be taxed at the higher rates. Caving under pressure – it is an election year and these guys need cash you know – Congress rolled over. Since Congress couldn’t mandate the type of tobacco sold, it found its own loophole. It re-classified the retail outlets as manufacturers. Now RYO not only will have to charge the same as retail stores – about $52 a carton, but stores can no longer operate in zoned retail districts without a variance.

Checkmate!

FOLLOW THE MONEY:  RYOs have denied the U.S. $1.3 billion in potential taxes since 2009. They’ve cut into Convenience Stores profits and there’s no telling what they’ve cost Altria and Liggett the two biggest cigarette manufacturers. But it must be a lot. Altria makes one of every two cigarettes sold in the U.S. Their shipments are down 4%.

So Big Tobacco spent millions of dollars and sent nearly a hundred lobbyists to Capitol Hill over the last few months. They went to their pal Democrat Sen. Max Baucus of MT and cashed in one of their markers. Baucus cleverly inserted the amendment into the Highway Bill… along with $400 million in funding for his state.  

Locally, Reps LaTourette and Fudge, and Sen. Sherrod Brown voted FOR the bill. Sen Rob Portman voted AGAINST the bill. Pres. Obama SIGNED the bill.

Whether you’re a smoker or not, this is heart breaking. It’s a classic case of Big Govt and Big Business teaming up to enrich themselves. Its maliciousness is sickening. Its consequences are devastating. Two competitors destroyed – RYO and the Farmers’ Co-op. An industry ruined. Thousands left unemployed.

It’s an American Nightmare.

America’s Pariah

Last week smokers took another hit when Congress and Pres. Obama approved the Highway Bill. I’m sure some of you out are saying ‘Good!’ In your mind smokers are nasty and they’re dirty. They contribute nothing to society and they cost the taxpayers a bundle. Society is better off without them. Well, let me give you some background on just how much smokers ‘cost’ you.

For starters, less than 20% of the population smokes cigarettes. The majority of smokers are low income. And yet this small segment of the population that can least afford it have improved the quality of life for millions of non-smoking Americans. Don’t believe me?

Every pack of cigarettes sold in Cuyahoga County carries $2.65 of taxes which benefit primarily non-smokers. As far as I could find, little if any, of these taxes go to ‘Stop Smoking Programs’.

The first tax paid is the Federal Excise tax of $1.01. This tax is used to fund S-Chip the State Children's Health Insurance Program. It’s for parents who make too much money to qualify for Medicaid.   

Next is the Ohio Excise tax of $1.25 that goes into the state’s General Fund where it can be used for whatever nifty program the state chooses to spend it on.  

Now comes Cuyahoga County. Voters in 1990 imposed a $.045 tax on smokers to help build Gund Arena, Progressive Field and Browns Stadium. God forbid that the multi-million dollar franchises actually pay for the facilities themselves. Why, they might have to pass those costs along to the people who enjoy the facilities. Can’t have that.

Then in 2006, County voters forced another tax on smokers – $.345 to assist Arts & Culture organizations. Since 2007, smokers have paid over $80 million into this fund. According to Cuyahoga Arts & Culture Annual Report, the money it took from smokers in 2010 (over $17 million) was used to fund organizations that:

Ÿ employed a workforce of 8,710;

Ÿ reached 1,220,884 children thru various programs;

Ÿ and served 6,459,243 residents and visitors.

How much you wanna bet most of the smokers who paid the tax have never enjoyed one of those Arts & Culture institutions they funded?

Okay, so now the smoker is at the register. Guess what happens next. The pack of cigarettes gets hit with a sales tax of 7.75%. Unbelievable – OH and the County are taxing the tax!    

Still not convinced the smoker is enhancing your quality of life? Okay, let’s move closer to home. In 1998 Ohio got $5.5 billion of Tobacco Settlement money to fund Anti-Smoking programs and offset the Medicaid costs of smoke-related health issues. That money is not coming out of the big tobacco companies. It’s coming from smokers to the tune of about $.57 a pack. You didn’t really think the tobacco companies would eat that $5 billion paid to Ohio, did you? In 2007, Gov. Strickland reneged on the deal and marked the money for new schools. I think there’s a lawsuit over this in the works.

In 2010 Euclid voters approved the funding of 4 new schools. The promise was that 41% of the cost would be picked up by the state’s Tobacco Settlement money. $25 million of our new schools is being paid for by smokers.   

Notice that not one of these taxes is going to stop smoking. The ugly truth is that Government doesn’t want to stop smokers. Good grief, why would they want to kill the goose laying the golden eggs? A pack a day smoker pays over $25 a week to fund public projects that for the most part, they’ll never enjoy. But nobody cares because smokers are the American Pariahs of society – the lowest of the low.

The Tax Foundation projects that, “The burden on the lowest-earning 20 percent of households from a cigarette tax is 37 times heavier than if the government raised the money with the federal income tax.”

Folks, just because a program (like Browns Stadium or Playhouse Square) is politically popular doesn’t make it right to fund it on the back of a politically unpopular minority like cigarette smokers. In fact, it’s downright unethical.

But it’s all about greed, getting something for nothing. Government and the non-smoking voters who impose the taxes are equally guilty. The irony of the whole thing is that every cigarette tax increase results in a smaller tax base. Eventually the goose will be cooked and everybody will have to put up. I can hardly wait.

Can You Help Fill An Empty Shelf?

If you’re like me, you know what it’s like to be hungry. So you go to your refrigerator or your cupboard, open the door – and find yourself staring at an empty shelf. After a long minute, you slowly close the door and sit back down, still hungry. Then you get up, go out and buy some food.

There are a lot of people who face empty shelves every day. Unlike you and me though, they can’t just go to the grocery store. They don’t have the money. Their shelves are consistently empty. A lot of those people live here in Euclid. There’s a good chance you know them. You just don’t know they’re hungry.

If you knew how to help them, would you? Well, here’s your chance. On Thursday, June 14 the Euclid Hunger Center is having a fundraiser at Briardale Greens. It’s a great opportunity for a great cause - filling an empty shelf to feed a hungry person or family.

Before I give you the details, let me give you some stats on Euclid that emphasize the need that the Euclid Hunger Center addresses on a daily basis:

- In Euclid, approx 7,400 people live in poverty

- In Euclid, approx 3,800 Euclid Schools students are at or below the poverty level

- In Euclid, approx 6,100 households are headed by single parents

- In Euclid, roughly 2,200 working age adults are unemployed

- In Euclid, there are approx 7,800 Seniors living on fixed incomes

Now let me give you some stats on the Hunger Center. EHC is located inside Shore Cultural Centre and has been helping Euclid residents for over ten years. Every week volunteers bag food either donated by or purchased with donations from caring, concerned folks like you. Every month they distribute those bags to over 1,200 of our neighbors and friends.

And here’s a little known fact - Every $1 the Hunger Center raises provides 10 meals. Those volunteers know how to stretch a buck.

The Euclid Hunger Center helps everyone it can who needs help. It could be an elderly senior with little left over after paying bills. It could be a single mom making minimum wage while raising two kids. It could be your neighbor who’s been out of work for two years or a friend facing foreclosure and bankruptcy because of medical bills. 

Now if you’re willing and if you’re able, there are several ways you can help the Hunger Center fill a bag to fill an empty shelf. You can send a donation to EHC, POB 23446, Euclid OH 44123 or you can donate online by visiting their website here. You can also drop off your papers in the Abitibi bins behind Shore. Proceeds go directly to the Hunger Center.

And if you want to help AND have fun at the same time, you can join other supporters of EHC on Thursday June 14 at The Pavilion at Briardale Greens off Babbitt. The summer fundraiser is from 6-9pm, and for just $20 ($25 at the door), you can enjoy Food, Live Music and Prizes. All proceeds benefit the Euclid Hunger Center. 

The summer fundraiser is just two weeks away, so before you forget – call the Euclid Hunger Center today at (216)731-3329 and reserve a ticket (or two).

There’s almost nothing more disheartening then facing an empty shelf on an empty stomach and knowing it won’t be filled any time soon.

The Euclid Hunger Center’s mission is to help fill those shelves, but it can’t fill them with good intentions.  It needs your help. Whichever route you choose, your donation is appreciated by both the Hunger Center and by the people the Hunger Center helps.

Thanks for your time. I hope you can make the summer fundraiser on Thursday, June 14 between 6pm and 9pm at the Pavilion at Briardale Greens. It should be fun.

E.185 Alive, Jail on Hold, Speed Cameras Tabled & Farmers Market

Lots of little news to spread this week. For starters, Sat May 19 is E.185 Alive put on by Cleveland’s Northeast Shores Development Corp. Parade starts at Neff at 11am and ends up at VA/SJ. There will be sidewalk sales and activities throughout the day till 5pm. Abby Ave by Old World Meats and BG’s Old World Tavern is holding a one day street-garage sale from 9am-5pm with about 10 households participating. Should be a great time.

***

Last month in a surprise move, Mayor Cervenik announced at the Safety Committee meeting that the County recommended he put his $3MM new jail on hold. They wouldn’t/couldn’t commit to giving the City county prisoners – a revenue source the Mayor was counting on to justify the new building. In light of the news, the Mayor & Council should cut our losses by closing the jail except for a few holding cells. Such a move could save the City anywhere from $500k to $1MM. Then take the $3.2MM the Mayor was planning on borrowing and put it into a breakwall. Such a move would send a strong message to K&D that Euclid really is committed to lakefront development. Maybe strong enough to finally get a marina going.
***

Kudos to the south side advocates who came to the April 25 Safety Committee to speak out against speed cameras in school zones. At the April 4 meeting, the Mayor had admitted to the Committee he would use the money to shore up the depleted Workman’s Comp and Self Insurance Funds, and that he’d like to set up a fund for Retiree payouts. In other words, the cameras were to be a revenue source. Thanks in large part to the residents, the plan died in committee.
***

Ward 1 Councilman David Gilliham announced his resignation effective July 1. Council will have to pick a replacement. Any Ward 1 resident interested in representing the southwest corner of the City until the Nov '13 elections should contact City Council at 289-8123 for info.
***
Starting Fri May 25th from 4-7pm, the Farmers Market returns to Shore each Friday. The Farmers Market is a great use of public space that benefits everybody (see my Sustainable Culture page to find out why)

While Euclid Goes Green, the Administration Stays Gray

Last month Council narrowly passed the Administration’s sewer rate increases 5-4. The increases will show up on June water bills and are intended to:

- offset OM&R increases

- prop up the mandatory 60 day reserve fund the Administration depleted

- eliminate SSOs (Sanitary Sewer Overflows)

- recoup the 2mill levy dollars voters rejected in 2010 to fund Maintenance, Operations, Management (MOM) EPA requirements

- further fund the Peterson Sewer Line fund

- further fund the Waterline fund

- raise money for an as yet to be approved plan to eliminate CSOs (Combined Sewer Overflows)

- begin raising money for an as yet to be approved plan to increase the Wastewater Treatment Plant’s capacity and efficacy.

Green streets divert water out of sewers &
into the ground



Interestingly, the Administration had no provision for introducing green technology to divert water out of the sewer system. Wd 7 Councilman Daryl Langman has been researching cities around the country in the same EPA predicament as Euclid, which have incorporated a combination of gray and green technology. At his urging, Council introduced and passed a resolution “supporting the development of green solutions to the control of storm water and infiltration into the sanitary sewer collection system as an integral part of the overall wastewater improvement project and authorizing the Administration to develop requests for proposals for qualified firms to partner with the project engineers in the development of a comprehensive plan.”

Green technology covers so much that rather than explain it here, I recommend you read Councilman Langman’s Post Going Green: A Stormwater Alternative Plan.

My own research has uncovered a very comprehensive Milwaukee Plan - Fresh Coast: Green Solutions - a 28 page pamphlet that is successfully combining Gray & Green Technology. By combining the two technologies, cities are saving money in capital expenditures while at the same time diverting water out of the sewer system.

It’s been almost a month now and there is no word on the Administration’s progress in going out for ‘Green’ proposals to partner with its ‘Gray’ engineering firm CT Consultants.

Workshops invest people into
the Rain Barrel concept - Slow it down,
spread it out, soak it in!



Meanwhile, last Sat Apr 21^st saw the 4^th Annual Rain Barrel Sale on the south side of town at the Euclid Historical Museum. Despite the cold and overcast skies, between 50 and 60 people showed up between 9:30-10am to assemble their purchased rain barrels, learn about rain gardens and composting, join Friends of Euclid Creek and inquire into the Community Garden. 3 Councilpersons showed up – Council President Holzheimer-Gail, Wd 2 Councilwoman Scarniench and Wd 7 Councilman Langman. While they have shown up every year, to my knowledge not one member of the Administration has taken the time to even make an appearance. They don’t know what they’re missing.

There was a Worm Farm with instructions, a battery backup Solar Fountain that was cheerfully working throughout the overcast morning and container-grown lettuce. There were also copies of the City’s Rain Barrel, Compost Piles and Downspout Disconnect Legislation that Council passed in the last 4 years to bring the City into the 21^st century and up to speed with Green Thinking.

Now I'll bet you didn't know you could legally disconnect your downspouts. Not surprising, since the City is loathe to promote it. Chicago, Shaker Heights, even CMHA has all but mandated downspout disconnect in order to divert water out of their sewer systems and encourage an eco-friendly environment. Meanwhile, Euclid hides its legislation under a bushel.

Over the past 4 years, 287 people have either put together or purchased 215 barrels at the sale. The Euclid Rain Barrel Sale accounts for over 30% of all Rain Barrels we know of  that have been installed in the Euclid Creek Watershed’s 9 cities. Way to go Euclid! The folks out there get it. But that’s not surprising. The private sector usually drives the public sector. Just how long it will take for Euclid officials to find the gas pedal and actively promote Green Technology is anybody’s guess. If and when Council sees proposals for qualified firms to partner with the project engineers in the development of a comprehensive sewer plan, then I’ll know the Administration’s foot is at least on the pedal. But unless Council stays on top of the Administration, I’m not holding my breath.

Council Splits on Sewer Rate Increase and Admin Thumbs Nose at Voters

Monday night (Mar 26) Council approved 3 separate increases to the sewer rates. The vote was close – 5 FOR the increases (Lynch-4, M cLaughlin-5, OHare-6, VanHo-8, Holzheimer-Gail-P) and 4 AGAINST the increases (Gilliham-1, Scarniench-2, Jones-3, Langman-7). Total increase will be $12/mcf (approx. 7,500 gallons).

There is no question OM&R rates had to go up. The Waste Water Treatment Plant is broke. It cannot fund operations, maintenance and repairs. It for sure can’t fund the 60 day Reserves requirement. Rates will increase $5/mcf (from $19.60 to $24.60/mcf).

Capital funds are used to finance debt and fund improvements. That rate will go up $4/mcf (from $4.08 to $8.08/mcf). An additional increase of .50 will occur in 2014, ‘16, ‘18 and ’19. $2 of the increase is to fund a new membrane technology system for WWTP. Sometime down the road, the EPA will approve a plan to bring Euclid into compliance with the Clean Water Act. The City is counting on membrane tech approval, but that hasn’t happened yet.

Peterson funds finance sewer line repairs. That rate will increase $2/mcf (from $11.88 to $13.88/mcf). An additional increase of $2 will occur in 2013. In 2008, Council approved $2/mcf/year for 5 years increases to replace CSOs (Combined Sewer Overflows). The CSO improvements were never EPA authorized, so the Administration diverted those funds to sewer maintenance.

Waterline funds are used to re-pave the half street left behind when Cleveland Water replaces a waterline and paves the half side affected. That fund is going up $1/mcf (from $9 to $10/mcf).

It all looks reasonable. The City must come into compliance with the EPA. It will cost millions to implement. So why did 4 council members vote NO? The four dissenting Council members were not comfortable with the increases because the EPA has not signed off on any proposals put forward by the City. They wanted to increase rates for the immediate needs of the City – Operations, Debt Service, Cash Reserves and Sewer Line repair/replacement. But without a written okay from the EPA, they wanted to wait on funding a plan that might not be approved. You can link to Ward 7 Councilman Langman’s blog on this page for his take. Additionally, Ward 2 Councilwoman Scarniench offered an amendment lowering Capital charges by $2/mcf. It was defeated 5-4.

For my part, I would like to have seen Council go even further by eliminating the $2-$3/mcf increase that covers the cost of the 2 mill levy that Euclid voted down in 2010. When I asked Law Director Frey for the rationale in slipping it in to OM&R and Peterson, he responded, “Yes, the Two Mil Sewer Levy was defeated at the ballot. We nonetheless have the requirement that we maintain our sewer lines, our storm and our sanitary sewer lines. We’ve built into this rate the cost of maintaining those storm and sanitary sewer lines. That’s what the MOM [Maintenance, Operation, Management] program is. It requires us to maintain the local collection system, that’s being charged to Peterson. It requires us to maintain the trunk system and that’s being charged to the overall plant system so the outside communities pay their portion. That is a requirement of the Consent Decree, the MOM program is a requirement of the Consent Decree and we have to fund it. It is part of the overall rate structure.”

This kind of logic pains me. The premise for the Law Director’s logic is that the government entity takes precedence over the individual. Using that logic, the government has the right to use whatever means necessary to do whatever it wants any time it wants.  

But that premise is false. In America, the individual takes precedence over the government entity. The government is there to protect the individual. When the people vote, government must honor that vote. The City Administration with Council approval did not do that. Instead, in direct opposition to the will of the people, it will collect the lost funds and maybe more by burrying the funding in the OM&R and Peterson rate increases. This is the second time since 2003, a vote of the people was thrown out. The first instance was around 2005. The people of Euclid rejected a Council re-zoning of Hillandale for residential and church use. Their vote was thrown out and the land was re-zoned anyway.

It’s bad enough the City mandated and is still collecting Garbage & Lighting fees that were supposed to be temporary. Ignoring a vote though, is worse. It is in my mind anyway.

Last Chance to Slow Down the Sewer Rate Increases



On the increase in viable waste water
treatment, Membrane Technology
 incorporates controlled biomass retention



The Service Committee will meet tomorrow (Wed Mar 21) at 6:30 one last time before Council votes on the sewer rate increases. The Administration hopes to have Council approve the increases at a Special Council Meeting Mon Mar 26 – in time to collect them for the 2^nd quarter. Many questions raised still remain unanswered.   

The Administration has asked Council to approve a 32% increase effective April 1^st in large part to fund anticipated changes required by the EPA to bring the City into compliance with the Clean Water Act. If approved, residential users will see rates increase $12/mcf (approx 7,500 gallons). To get an idea what it would cost you, check your water bill usage. Multiply that by $12 and then again by 4 (quarters). The total is your annual increase. These rate increases also are not final. More increases are due come fall.

But questions remain. Included in the increases is enough to make up for the 2mill levy voters rejected in 2010. What part of “NO” does the Administration not understand and respect even less?

In 2008 Mayor Cervenik came to Council requesting an increase of $2/mcf per year for the Peterson Fund for 5 years. The estimated $5million raised would replace the City’s 17 CSOs (Combined Sewer Overflows). Council approved the increases.

At the Mar 12 Executive Finance Committee Meeting on the new Membrane Technology, the Administration shocked some by admitting that 3 years later, no CSOs had been replaced because EPA had yet to authorize the plan. And that even if there had been authorization, there just wasn’t enough money. Consumption was down. The money raised to replace CSOs was spent on other sewer repairs.

Membrane Technology does seem a good way to go. But, while fairly confident of EPA approval, CT Consultants - the City's engineering firm - could not guarantee the EPA would approve the plan. Until it does, slow down. Find a way to offset the increases. Councilwoman Scarniench has suggested eliminating the Street Lighting Fee in exchange. Great idea except the Mayor told Council he needs that fee for cash reserves. Then get rid of the Garbage Tax. By the Mayor’s own admission, tax revenues are ahead of projections and the City is solvent thru 2013.

Lastly, the Administration has no plan for doing anything that can divert storm water out of the sewers - something the EPA highly encourages and that Councilman Langman’s research has shown will save money at the front and back ends.

Council is being asked to vote for an increase of $12/mcf to fund a plan the EPA has not authorized. Is that ethical? Council is being asked to approve a plan that does nothing to lessen the amount of storm water that goes into the system. Is that smart? Council is being asked to sidestep the voter’s NO to Issue 2. Is that good representation?

Now if you’re okay with all this, fine. But if you’ve got concerns, tomorrow may be your last opportunity to influence Council to wait until the City has something in writing from the EPA. How sad it would be if after the City invested $11 million in engineering fees, $1.5million into the Old Alexander’s property, and another $100 million or so into Membrane Technology, and $20 million or so into sewer line replacements, the EPA said, “Sorry, not good enough. There’s no green infrastructure here.”

Tomorrow night's meeting is at 6:30 in Council Chambers. The ball is in your court. 

Citizen Asks Council to Vote "No" on Increases

After the March 12 Executive Finance Committee meeting on Membrane Technology for the Euclid Wastewater Treatment Plant, and further discussion on proposed sewer rate increases, Mr. Jeffrey Beck sent the following email to City Council:

Subject: Sewer rate Increase
After attending 2 meetings and asking questions at both I am against the sewer rate increase at this time for the following reasons
1) The city has not done their due diligence in investigating the MBR technology.
        -Have we spoken with multiple cities that use this technology? Especially those cities who discharge into a major lake such as Erie.
        -Have we spoken with cities that looked at this technology and decided on something else?
        -I understand that we had the opportunity to visit the wastewater site in Canton that utilizes MBR and passed. Why?
2) Too many questions were raised by Council and myself that were not answered.
        -Basic questions such as size of these membranes could not be answered by CT Consultants. This showed a lack of basic knowledge on this technology.
        -I asked about the membrane degradation. If these units have an 8 year life span what is the water flow after 3 years? 4 years? 5 years? An internet article states that this is an issue. If we get 66M gallons per day capacity on day one does this become 33M gallons per day after 4 years (50% life span)? The only answer I received was from
         Councilman McLaughlin who stated that these membranes have a tendency to rip causing more water flow. What? This would also allow sewage to enter the lake and doesn't give me a warm and fuzzy feeling. The CT person stated that they do degrade but never answered my question. Yes, I know he said they self clean but that will only take them so far.
        -The CT person stated that they have never worked with the US EPA and that it is much more difficult than the Ohio EPA. I asked why we weren't employing an engineering firm with US EPA experience. My question was deftly deflected by Chris Frey who spoke about a Columbus lawyer we have consulted.
3) Negotiations with the EPA seemed to be going nowhere. The city stated that they have presented 18 plans that were not approved. They also stated that there was a $200M plan that the EPA would approve. If we are looking to save the taxpayers money we seemed to be lost as to how to do it. Presenting 18 plans sounds to me like a muddled mess.
4) As Councilman Langman pointed out Council authorized a rate increase in 2008 to the Peterson fund work work on the CSO's. The money was taken from the taxpayers but the work was never done. The reason stated was that the EPA did not give approval for the work. So, once before Council approved a rate increase with only partial information from the administration.

It is for these reasons why I am against voting a rate increase at this time. We do not have approval from the EPA yet and it doesn't look as if we will anytime soon. If partial approval on correcting the SSO's does come down then the cost of just that should be approved. We cannot collect monies from the taxpayers in anticipation of anything. You can see what happened in 2008. We clearly have an administration that does not concern themselves with being forthcoming on providing information. We have an administration that only provides just enough information to gain council approval. It is only later that you find out the "rest of the story".  Please do not let  what happened in 2008 happen again. Do your due diligence on this issue, get straight answers to ALL the questions that have been raised, demand an engineering firm that has the experience to resolve the issue with the US EPA, get that EPA resolution and THEN vote to increase the sewer rates as needed. This is a $70M immediate issue and a $136M long term issue. If you rush this through you will be doing a big disservice to the residents of this city. We demand better.