City of Olney City Council met Monday, July 27.
Here is the minutes provided by the council:
AGENDA #1 “CALL TO ORDER” The meeting of the Olney City Council was called to order at 7:00 p.m. in the Council Chambers of the Olney City Hall located at 300 S. Whittle Avenue, Olney, Illinois, with Mayor Mark Lambird presiding.
AGENDA #2 “PLEDGE OF ALLEGIANCE TO THE FLAG-PRAYER” Council members and visitors joined in the pledge of allegiance to the flag. Mayor Lambird led the group in prayer.
AGENDA #3 “ROLL CALL” The following Council members were present: Mark Lambird, John McLaughlin, Belinda Henton, Morgan Fehrenbacher, and Greg Eyer. Also present were City Manager Allen Barker, City Treasurer Jane Guinn, City Clerk Kelsie Sterchi, City Engineer Mike Bridges, and City Attorney Bart Zuber.
AGENDA #4 “PRESENTATION OF CONSENT AGENDA”
4-A “Approve Minutes of Council Meeting on July 13, 2020”
4-B “Approve and Authorize Payment of Accounts Payable July 28, 2020” Pooled Cash $93,839.32, Manual Pooled Cash $4,013.64, Utility Refunds $1,391.29, Unemployment $865.91
4-C “Appointments to the Library Board: Brandan Michels and Michelle Simpson”
4-D “Resolution: Amended Agreement with the Rotary Club of Olney and the Rotary Club of Richland County for the Addition of Dusk-to-Dawn Lighting Services at Rotary Park” 2020-R-50
AGENDA #5 “REMOVAL OF ITEMS FROM CONSENT AGENDA” No items were requested for removal from the consent agenda.
AGENDA #6 “CONSIDERATION OF CONSENT AGENDA” Councilwoman Fehrenbacher moved to approve the items on the consent agenda, seconded by Councilman McLaughlin. A majority affirmative voice vote was received to approve the items on the consent agenda.
AGENDA #7 “CONSIDERATION OF ITEMS REMOVED FROM CONSENT AGENDA” No consideration was necessary since no items were removed from the consent agenda.
AGENDA #8 “PRESENTATION OF ORDINANCES, RESOLUTIONS, ETC.”
8-A “Discussion/Possible Action: Small Business Utility Relief Program” The Council was provided with a general overview of a City of Olney COVID-19 Business Utility Relief Program, a proposed application for the program, and a copy of a COVID-19 Q2 2020 Economic Impact Survey sent out by the Chamber of Commerce. The Council was also provided with a listing of Commercial Account Categories, account totals, and February 28, 2020, billing totals.
Referencing the listing of Commercial Account Categories, Mayor Lambird said that he did not feel that all account categories would qualify for the program. Listed account categories included banks, commercial, church, church outside City limits, clubs, commercial outside City limits, government, health care facilities, hotels, nursing homes, restaurants, residential group homes, schools, schools outside City limits, and utilities.
Councilwoman Fehrenbacher wondered why such a program was needed when the City had waived late fees, a few disconnections, and offered flexible deferred payment plan options for a few months due to COVID-19. Those actions applied to all accounts. According to the City Clerk’s Office, there were no problems with commercial accounts falling behind on their utility bill. Because of this, she did not believe there was a large problem that needed addressed.
She clarified that she was more than willing to help if there was a need, but she did not see a need in this circumstance.
The Councilwoman then questioned if commercial accounts such as churches would be qualified as a business to receive an abatement as they did not pay sales tax. Mayor Lambird felt that would be up to the Council to decide.
Looking at the listing of Commercial Account Categories, Councilwoman Fehrenbacher pointed out that the total dollar amount for all 456 accounts during the February 18, 2020, billing totaled $50,162.31 for one month. Mayor Lambird believed that a truer number would be about $20,000.00 to $26,000.00 if the City removed listed accounts that would not qualify for the program.
Councilwoman Fehrenbacher continued by expressing concern that it would not be fair to not offer the proposed program to all commercial accounts. Mayor Lambird replied that the program would be offered to all, but applications would only be approved based on if certain qualifications were met.
Councilwoman Henton questioned if home-occupied businesses would qualify. The Council pointed out that the proposal suggested that eligible businesses would be brick and mortar only; no businesses inside of their own residence.
Mayor Lambird stated his same concern from the meeting prior that he felt as if other cities had done far more than Olney had for local businesses. He felt that such a relief program was the least that the City could do.
Councilwoman Fehrenbacher stated that the City was also affected by COVID-19. The Council had been having discussions on monitoring its finances even more so due to the current state of affairs. She felt that if business owners were truly struggling to pay their utility bill, then they would have been asking for help. She did not feel that abating their utility bill for three months was a wise decision on the part of the City, and she felt that the Council needed to run the City as a business in that manner.
Mayor Lambird countered that if a business closed, it would also be detrimental to the City’s budget. He felt it was wise to stimulate economic activity that would serve as a dividend to the City.
Councilman Eyer asked Mrs. Sterchi if she felt that businesses were struggling with payments. Mrs. Sterchi replied that all her office had to go on was whether or not payments were being made. At this time, there was not a problem with commercial payments.
Councilman McLaughlin asked how the City’s water budget was coming along. Mrs. Guinn replied that so far, the budget had not really been too hurt by COVID-19.
Councilman McLaughlin then stated that he was inclined to be in favor of the proposal.
He felt the City should do something to help businesses because the loss due to the COVID-19 was so extreme. He was not sure that there was any other way the City could help such businesses.
Councilwoman Fehrenbacher then asked Mr. Zuber if the City would be crossing the line by not offering abatement to everyone. Mr. Zuber replied that it would only be unconstitutional if the City discriminated against a protected class. Based on this evening’s discussion, Mr. Zuber believed that the program would be offered to all, but an application could fail depending on certain program requirements. The answers submitted on the application would need to be truthful because the City did not have appropriate staff to investigate the information to be provided.
Mayor Lambird offered that a certified letter from an accountant should vouch for the validity of the application. Mr. Zuber agreed, but pointed out that some businesses may not even apply if that was required due to the cost of paying an accountant to do so.
Councilwoman Fehrenbacher wondered who would be going through all of the applications if it was likely that hundreds would be submitted. She felt the proposal would be stirring up a lot of work for those that already had a lot of work on the table. Mayor Lambird felt that was the City’s duty as public servants.
Councilwoman Henton commented that a loss of revenue lower than 50% should not be considered.
RCDC Executive Director Courtney Yockey wished to share some information.
According to research, 17 local businesses had acquired a PPP loan of $150,000.00 or more and 238 businesses had received a PPP loan of up to $150,000.00. Some, all, or none of those loan funds could be forgiven, depending on certain factors. None of the businesses yet knew if any their loans would be forgiven.
Councilwoman Henton felt that the PPP loan funds should be counted as revenue for businesses because it helped those businesses in paying bills and meeting their bottom line.
Mayor Lambird and Councilman McLaughlin disagreed because the income was not from taxable sales.
Councilwoman Fehrnebacher asked for information regarding the results of the COVID19 Q2 2020 Economic Impact Survey. Mr. Yockey replied that 380 people had been e-mailed the survey through the Chamber’s contact list. Of that amount, 180 individuals opened the email, and 40 responded. According to respondents, 68% of them had lost more than 25% in revenue for Q2.
https://www.ci.olney.il.us/cc%20July%2027%202020.pdf
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