HomeMy WebLinkAboutMinutes - April 13, 1999 SMLODI CITY COUNCIL
SPECIAL CITY COUNCIL MEETING
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, APRIL 13, 1999
7:00 A.M.
1. ROLL CALL
Present: Council Members — Hitchcock, Nakanishi, Pennino and Land (Mayor)
Absent: Council Members — Mann
Also Present: City Manager Flynn, Deputy City Manager Keeter, Economic Development
Coordinator Goehring, Public Works Director Prima, Community Development
Director Bartlam, Finance Director McAthie, Police Chief Hansen, Fire Chief
Kenley, Parks and Recreation Director Williamson, Library Services Coordinator
Martinez, City Attorney Hays and City Clerk Reimche
2. REGULAR CALENDAR
Agenda item #13-1 entitled, "Recommendation that Council accept Landucci's offer of settlement"
Finance Director McAthie presented the following report.
Landucci, Inc. presently owes the City of Lodi $33,819.18 for electricity, $144.77 for sewage,
$264.77 for refuse and $428.98 for water, representing a total of $34,657.70. Landucci, Inc. has
ceased operation.
Through their Counsel, Landucci, Inc. has offered to pay the City of Lodi slightly in excess of
one-third of their debt to the City. If all creditors of Landucci, Inc. do not accept this settlement
proposal, Landucci, Inc. will be filing a Chapter 7 Petition in Bankruptcy. A filing in Chapter 7
would result in a liquidation of the Debtor's assets with payments made to Creditors from the
liquidation proceeds. We do not have a complete understanding of the debts nor the assets of the
Debtor. Therefore, we do not know if the City would secure more or less through a Chapter 7
filing.
Following a brief discussion, the City Council, on motion of Mayor Land, Nakanishi second,
accepted the request from Landucci, Inc. to compromise a debt and directed staff to advise
Counsel for Landucci, Inc. of that decision on or before April 15, 1999 by the following vote:
Ayes: Council Members — Hitchcock, Nakanishi, Pennino and Land (Mayor)
Noes: Council Members — None
Absent: Council Members — Mann
ADJOURNMENT
There being no further business to come before the City Council, Mayor Land adjourned the
meeting at approximately 7:10 a.m.
ATTEST:
Alice M. Reimche
City Clerk