ATHENS, Ohio — At its Jan. 13 meeting, in addition to discussions around housing projects, the city of Athens discussed local and federal legal cases, heard the disability commission’s annual report, and heard public comment relating to construction challenges.
Federal lawsuits, state utilities issue
Athens City Council passed an emergency ordinance to retain a New York law firm to represent its potential interests in the outcomes of three federal lawsuits
Two of the pending cases involve price fixing on insulin and generic drugs; the third addresses injuries and property damages from the presence of PFAS — also known as “forever chemicals” — in water.
City Law Director Lisa Eliason said she learned of the civil claims for price fixing only a week ago from Sunday Creek Horizons, a consulting firm that works with the city on numerous projects.
The ordinance authorized Mayor Steve Patterson to enter a contract with Grossman & Kelly, a New York City firm, to sue firms found liable by the federal government on the city’s behalf. Patterson said the city’s Human Resources director will review the city’s expenditures on insulin and generic drugs since 2003 to determine how much the city was overcharged.
The contract with the firm costs the city nothing up front, officials said. The city would incur legal costs only if it decides to participate in future appeals. If the firm successfully sues on the city’s behalf, the city would owe a third of the awarded judgment plus expenses incurred while filing and conducting the case.
Alan Swank, 4th Ward, and Michael Wood, 3rd Ward, raised concerns about hiring an unknown out-of-state law firm.
Wood said there were “a lot of warning bells” about the situation, adding, “It strikes me as a sales pitch.” Wood cast the lone “no” vote on the ordinance.
Swank said he would support the ordinance, given Monday’s participation deadline, but was concerned that Ohio law firms weren’t involved, as well as the expense of potential billings of law firms that now charge “for every 10 minutes,” including a phone call.
“We are being pressured,” he said.
In another emergency action, the council passed an ordinance supporting the Ohio Municipal League’s challenge of an application pending before the Public Utilities Commission of Ohio. AT&T wants the commission to let it change what it charges municipalities to relocate utilities.
The proposal would make Ohio cities where AT&T has utilities right-of-way responsible for paying all costs related to relocation of those utilities – “regardless of the reason for the relocation.”
“This is a direct contradiction of current Ohio law,” the city’s ordinance states.
Council member Jessica Thomas, At-Large, said if AT&T is successful before PUCO, it will give other utilities and entities impetus to follow with similar moves.
Council member Alan Swank, 4th Ward, said he sees AT&T’s application as more about who controls rights-of-way than about shifting costs of relocating utility lines. Mayor Steve Patterson termed it as “another effort to further erode home rule.”
Cyber-scam update
Patterson provided an update on the investigation into the November theft of nearly $722,000 in city funds through an email payment scam.
Patterson told the council that Republic Bank and Trade had recovered about $349,500 from the account where the city sent the fraudulent payment. He also said that the bank filed a motion in Athens County Common Pleas Court on Jan. 10 asking the court “to adjudicate how recovered funds are to be paid back to the city.”
“The amount recovered from the account is … approximately half of the money” that was stolen, Patterson said.
During the public comment period, Athens resident Mary Abel asked Patterson to clarify his remarks regarding the recovered funds. Abel mentioned local news stories about Republic Bank’s motion, which stated that the fraudulent account also was used to deposit funds from another scam victim — a Florida company.
“Has that already been decided and we’re going to get this $300-some thousand or does the judge have yet to rule on that?” she asked.
Patterson said that no decision has been made. “To my knowledge, the other entity doesn’t even know that they have been scammed out of money,” he said.
Disabilities commission annual report
The 11-member Athens City Commission on Disabilities, chaired by Davey McNelly, presented its 2024 annual report to council. Fellow commission members Ally Hughes, secretary, Carolyn Bailey Lewis, treasurer, and Michelle Hahn joined McNelly for the presentation.
Among its duties, the disabilities commission recommends city services for persons with disabilities to Athens city government, acts as a liaison between community members and city government, and informs the city of grant opportunities related to accessibility.
Highlights of the commission in 2024 included the sixth annual Walk, Talk and Roll event, consulting on sidewalk projects including Union Street uptown, and performing city park audits.
Where it concerns requests and opportunities, McNelly said, “As a city, we really need to fix the uptown.”
Disability commission meetings are held on the third Wednesdays of each month at 5:30 p.m. in the Athens Community Center.
Cool Digs owner says situation not cool, at all
As she did in December 2024, Cool Digs Rock Shop owner Saraquoia Bryant appeared before the council about the effect of an ongoing construction project on her business, because pedestrians have no discernable walkway into her shop.
Work on the $11 million Lostro building project at the corner of South Court Street and Union Street has repeatedly blocked the sidewalk. The problem has been a major impediment to customers since September, Bryant said.
Bryant said she is “barely hanging on” as a business, while neighboring businesses — Grub ‘n Go and Jack Neal Floral — have closed or are closing.
Bryant said that while the city installed a walkway on Jan. 4, the city partially removed that walkway less than a week later.
“Students are essentially walking on the road, again,” she said.
Bryant said that last month, city officials told her that the lack of access to sidewalks could last for another 80 days. That raised the concern of Swank, who helped her with a visual presentation to council.
Bryant has alleged that Stone and Deputy Safety Service Director Andrew Chiki have avoided communicating with her and failed to address the situation. In a Jan. 2 email, Stone told Bryant that the sidewalk closure is for the greater good.
“It is not in Athens’ interest, to include the interest of other uptown businesses, to have this building vacant for years,” he wrote in the email, which Bryant shared with the Independent. He said the city is working with the contractor to have “as little impact as possible to the traveling public while still safely being able to renovate the building.”
“I realize it creates an obstruction, but that is necessary for the renovations, which in the end will benefit everyone,” he wrote.
Athens resident Don Wirtshafter addressed the council on Bryant’s behalf, noting that the city issued a 30-day permit for the Lostro developers to close the sidewalk. When that permit expired, the city issued another one, he said — and the city has continued to issue new permits ever since.
“The city extended that without any input from the neighbors,” he said. “That corner is going to be a mess for years to come.”
Council adjourned the meeting without responding to Bryant or Wirtshafter.
Bryant has organized a town hall meeting to discuss business challenges. The event is scheduled for Jan. 22 at 5:30 p.m. in the Athens Community Center.
In other business, the council held first reading of an ordinance authorizing East State Street traffic signal improvements, and directing the auditor to make a related interfund transfer. The city received almost $430,000 for the project through the Ohio Department of Transportation’s Small Cities Congestion Mitigation Grant.
Athens City Council’s next regular meeting will be at 7 p.m. on Tuesday, Jan. 21, in Athens City Hall, Council Chambers, third floor, 8 E. Washington St. Meetings are also available online. Regular sessions are on the first and third Mondays of the month; committee meetings are on the second and fourth Mondays.
