HomeMy WebLinkAbout04/26/1985April 26, 1985
The Council of the City of Waterloo, Iowa, met in Special Session at
City Hall Council Chambers, Waterloo, Iowa at 4:00 p.m. on April
26, 1985. Mayor Bowers in the Chair. Roll call: Klinger, Penaluna,
Getty, Seeber, and Wright. Absent: Lichty and Dowie.
87316 - Moved by Getty, seconded by Wright
that the Agenda, as amended for the Special Session of April 26,
1985, at 4:00 p.m., be accepted and approved.
Motion carried.
87317 - Gailen Gran representing Herman M. Brown gave a slide presentation of
the FMC Vanguard 3000 Street Sweeper. The City of Waterloo is
currently advertising for bids for a sweeper. They are due on May 1,
1985.
Councilperson Seeber now present.
DOCUMENTS
Moved by Getty, seconded by Penaluna
that communication from City Planner transmitting the Traffic
Operation Evaluation for the proposed Sager Avenue north
alternate/Hackett Road Bypass Intersection Design together with
recommendation for approval of Alternate 4 be received, placed on
file and "Resolution approving Alternate 4 for the proposed Sager
Avenue north Alternate/Hackett Road ByPass Intersection Design", be
adopted. Ayes: Five. Absent: Lichty and Dowie.
Resolution adopted and upon approval by Mayor assigned No. 1985-186.
87318 - Moved by Seeber, seconded by Wright
that communication from City Planner transmitting proposed agreement
with the Iowa Department of Transportation (Agreement No. 84-F-070)
for 5th/6th Streets, IX -6653(3)--79-07 from Washington Street to
Jefferson Street and Mulberry Street to Franklin Street with said
agreements for the reimbursement of construction costs and
construction engineering costs on said project, together with
recommendation of approval be received, placed on file and
"Resolution approving said agreements", be adopted and Mayor and
Clerk/Auditor authorized to execute same. Ayes: Five. Absent:
Lichty and Dowie.
Resolution adopted and upon approval by Mayor assigned No. 1985-187.
87319 - Moved by Getty, seconded by Klinger
that communication from City Planner transmitting the proposed
Addendum No. 85-A-177 to Agreement 83-3-159 with the Iowa Department
of Transportation for Relocated Highway U.S. 20 and transfer of
access roads south to and adjacent to said highway (Project No.
IX -520-6(8) and 28--3P-07) together with recommendation of approval
be received, placed on file and "Resolution approving said
Agreements", be adopted and Mayor and Clerk/Auditor authorized to
execute same. Ayes: Five. Absent: Dowie and Lichty.
Resolution adopted and upon approval by Mayor assigned No. 1985-188.
April 26, 1985 Page Two
DOCUMENTS CONTINUED
87320 - Don Temeyer, Planning and Development Director, indicated that the
Park Department and Planning, Programming and Zoning Staffs have
reviewed the proposed abandonment of the Chicago Northwestern Railway
between Iowa Highway 63 and the west corporate limits of the City.
Should this right of way be purchased for public use, it would
tie into the proposed plans for Shaulis Road Bikeway and the eventual
construction of bikeways north along Hackett ByPass and across to
George Wyth Park. Proposed cost of the right of way purchase is
between $15,000 and $20,000 for this parcel. Should the Council
approve this concept it does not commit the City in any way to its
purchase. It only authorizes staff to forward this recommendation to
the Interstate Commerce Commission for their consideration and
approval.
Bob Brooks, Park's Director, indicated his staff's review and
concurrence in the purchase of this property.
Moved by Getty, seconded by Wright
that communication from City Planner transmitting recommendation on
proposed abandonment of the Chicago Northwestern Railroad Track from
Shaulis Road to downtown Cedar Falls together with the approval of
Planning, Programming and Zoning Staff and Park Department, and
Transportation Policy Board with use of said right of way for
conversion to public use/utility corridor, hiking, bikeway, be
received, placed on file and "Resolution approving the
City of Waterloo's desire to begin a first option to acquire a
portion of the Chicago Northwestern Railway for public use proposed
to be abandoned rail line lying within in the City of Waterloo, Black
Hawk County, Iowa", be adopted. Ayes: Five. Absent: Lichty and
Dowie.
Resolution adopted and upon approval by Mayor assigned No. 1985-189.
PETITIONS FROM PUBLIC
87321 - Vernon E. Weems, Jr. representing "A Nation United, Inc." presented a
plan for the reorganization of Rath Packing Company. In essence, the
agreement would be to purchase Rath Packing Company and bring it out
of Chapter 11 simultaneously and would also require a 50%
buyout of the City's lien on the building and equipment at Rath. The
plan was subject to the Bankruptcy Court's approval but does not
address the iter of unclassified claims and does not count the
$300,000 that the City has paid since February 14, 1985 for the
securing of the building and equipment. .He proposed the following
offer:
CLAIMANT PAYOFF
Security Pacific
City of Waterloo
Black Hawk Economic Development
Trade Creditors and Unsecured Creditors
Wage Claims
Employee Claims
Retirees (Closed Class)
Equity Holders up to 80% of stock
with an option for the remaining 20% $0.5 MM
(The above are immediate cash payoffs and subject to acceptance by
the creditors and dollar adjustments after negotiations. There will
be slight changes in payoff figures.)
He stated that ownership of the company would remain local and that
management of the new company would be with himself as Chairperson of
the corporation. At this time he could not reveal any of the other
officers of the company. The Black Hawk County Economic Development
Committee has reviewed the proposal as stated above but he was
unaware of their decision. He has also attempted to contact the
Employees Reorganization Committee of Rath Packing Company of his
plan.
$1.3 MM (Total Payoff)
$2.3 MM
$1.5 MM
$1.0 MM
5% of the next 5 yrs.
pre-tax profit
$1.0 MM
Insurance
April 26, 1985 Page Three
PETITIONS FRI PUBLIC CONTINUED
Don Temeyer, Planning and Development Director, indicated that the
Economic Development Committee had voted to accept payment of 50
cents on $1.00 for anyone who could pay cash.
Vern Petrie of the Employees Reorganization Committee indicated that
he did not know Rath was for sale and if he had, his cammitee would
have purchased it.
W. David Tyler, City Attorney, clarified the situation by indicating
the City has a lien on the property and does not have ownership of
the property and that the bankruptcy judge will do the actual sale of
the property.
Mr. Weems indicated that in buying the City's lien position the City
would realize $2.6 million in cash but would not be guaranteed its
$4.6 million investment in the company.
Councilperson Penaluna stated that without knowing Mr. Weems proposed
management team and startup procedures, he was not able to make a
decision on his reorganization plan. Again, Mr. Weems indicated that
this was not a item that the Council needed to discuss.
Councilperson Penalauna suggested that the Council meet in Executive
Session so that Mr. Weems could apraise them of his management team;
however, Mr. Weems that he was not willing to do this.
Councilperson Seeber indicated that all other plans discussed by the
City have been totally reviewed by the Council. He indicated that
there was no guarantee of who or in what order the employees would be
coming back to work. Mr. Seeber also stated that his concern was
with local employees and putting them back to work.
Mayor Bowers indicated that they did not oppose Mr. Weems
reorganization plan but the Council could not make a determination on
the terms of his agreement.
Moved by Getty, seconded by Penaluna
that the request of Vernon E. Weems for payment to the City of
Waterloo of 50 cents on the $1.00 for the Reorganization of Rath
Packing Company be denied. Ayes: Klinger, Penaluna, Getty, Seeber.
Nays: Wright. Absent: Lichty and Dowie.
Motion carried.
ADJOURNMENT
87322 - Moved by Getty, seconded by Seeber
that the Council adjourn.
Motion carried.
Larry P. Burger
City Clerk/Auditor