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Show 7- - 40 expires 1ZU31ZI8S HOflG & SONS BOOKBI NDERY, INC. R s 127 RAILROAD STREET SPRINGPORT MI 4384 Report pessimistic about chances for Geneva opening April 24 by the Geneva Advisory Board. The board was formed last year when USX, then U.S. Steel, announced the Orem steel works would probably be closed in 1989. Since then, USX has announced they plan to close the plant in July of this year. A market report compiled by Wall street steel anyalysts Peter F. Marcus and Donald F. Barnett S questions the viability of USX's Geneva Works. In spite of the pessimistic outlook of the survey, one group who is studying the purchase of the steel plant, says they aren't affected by it. Robert J. Grow, of the law firm Kimball, Parr, Crockett and h Waddoups and legal council for Basic Manufacturing and Technology of Utah. Inc., said the N group has been aware of the Marcus llt report for some period of time but lt'1 are doing their own feasibility study much attention to so are not paying tt 'Basic Manufacturing and Technology of Utah, Inc. is one of two groups who have been looking into possible purchase or of the steel plant. S'i: "We have been aware of what's in it (the Marcus report) for several weeks but are continuining to in- - vestigate and do our own feasibility and marketing study," Grow said. He said the group is also con- - tinuing discussions with USX on the ""I possibility of purchasing the steel vj plant. I The Marcus report was released edited sensitive business data from the $40,000 report. McDougall said Friday he doesn't believe Geneva's future is as "gloomy" as the report indicates, however. Although he agrees the report appears basically pessimistic, he says the report lists as many pros as cons. The summary report says the viability of the Geneva plant is "very questionable" and only when granting a series of "best case" and "possibly even heroic assumptions" does it appear that the plant is a viable entity. - and even then, possibly only for awhile. The best case assumptions include paring operating costs by a further $50 a ton: labor productivity per ton of d temper-rolle- d band rises from 3 to 3.05 manhours per ton shipped, and for plate from 4.7 to 4.75 per ton despite a precipitious decline in volume. To achieve this, the hourly workforce would have to be reduced by 47 percent from 1,800 to 960 and the salaried workers by 52 percent from 343 to 165 people. No barriers to flexibility in work practices could exisit. Employment costs per hour, in cluding benefits, would have to be sharply cut from just about $25 prior to the USX (including significant overtime payments) to abour $17; and sizable concessions would have to received from suppliers of all services and materials, including coal, iron ore and electricity. Moreover, the work force would have to be highly dedicated to the success of the plant; shipments to the 'trade' (customers other than USS-POSC- boosted to about 680,000 tons per annum; and prices would have to hold at the level they were in June of 1986. Many key Geneva managers would also have to remain at the plant. Substantial loans would also have to be available from either the state or other sources which would greatly reduce the equity con-tribution of any new investor group. The report estimates at least $40 million would be necessary to restart the plant, plus the price at which USX sells the facility. "Granted these assumptions, many of which could be difficult to achieve, it appears that the plant might earn an operating profit before interest expenses," it goes on. Risks to profitability were also outlined. The report points out once the $50 per ton of cost cuts were achieved, the plant would have less op-portunity to reduce costs than many other facilities in industry; major capital improvements would be needed with expenditures on the blast furnaces alone during the next eight years estimated at about $23 million; and interest expenses would probably be at least $7 million, 'The company needs massive cost cuts, a substantial share of the plate market, minor start-u- p costs, substantial infusions of government money, very skilled workers, good breaks on pricing and an entrepreneurial group to take the risks.' depending on the price that USX asks for the plant. If the plant were to be restarted and profits prove satisfactory, substantial earnings would need to be retained in order to add to the survival odds over the long term. The analyists didn't give the plant a chance for a long life, even if re-started. They said major problems include the remoteness of the markets, the old equipment, the sub-pa- r product quality, below-averag- e cost reduction opportunities after the initial decline, and the need to upgrade product mix. "Without major investments, including the replacement of steel-makin- g facilities, a new continuous caster and the upgrading of the combination hot strip-plat- e mill, the plant seems to have a limited life," the report said. "All in all. there is very little, if any margin of error at the plant. A large number of optimistic assumptions need to come about for profit levels to be moderate. The company needs massive cost cuts, a substantial share of the plate market, minor start-u- p costs, substantial infusions of government money, very skilled workers, good breaks on pricing and an en-trepreneurial group to take the risks." the report summary con-cludes. The viability of the Geneva plant is 'very questionable' . . . only when granting a series of 'best case' and 'possibly even heroic assumptions' does it appear a viable entity. The advisory board retained Marcus, a vice president of Paine-Webb- Inc., and Barnett to determine if potential markets for Geneva made steel currently exists. Robert McDougall, chairman of the advisory board, said the ap-proximately report was delivered to the Geneva Advisory board about two weeks ago. It wasn't released to the public until a special had Vol. 9, No. 16 Wednesday, April 29, 1987 50 cents a single copy 13 i Liedoii to have new zip code 22 Dick Woolums, Pleasant Grove Post Master, has announced that U( Lindon City will have its own zip "J codebeginningJulyl. The new zip code will be 84042. r However, residents may begin using the zip code right now, Mr. Woolums noted. In fact, the Post L Office officials urge Lindon residents to begin notifying all those who correspond with them, billing k departments, magazines, etc., of y their change of address as soon as possible. They should list their name, street number, with Lindon as the city rather than Pleasant Grove, and then the new zip code. Change of address cards are available at the Pleasant Grove Post Office, Mr. Woolums stated. Because of Lindon having the same zip code as Pleasant Grove, many addresses, especially those printed on computer, come through with Pleasant Grove listed as the city. This has caused duplication of street numbers and therefore lots of confusion, making the change necessary. The Post Master thanked the people of Lindon for their patience with them as they have often had to hand sort the mail which has sometimes slowed delivery. The Post Office has been working on this change for two years. The Lindon City Administrator, A. Ray Brown, under the direction of the city council, had asked Congressman Howard C. Nielsen to see if they could get a separate zip code. Mr. Woolums said this change will save the Post Office a great deal of time. The Lindon residents will be receiving a letter very soon ex-plaining the change, he added. Alpine and Mapleton will also be getting new numbers. Alpine's will be 84004 and Mapleton 's will be 84664. ... J - .,ftt,.- - ' 'i$ - '111-- - i r 1 lit-- 11.1 i pis V V iiK:v Tina Story is the reigning Strawberry Days Queen. Pageant will crown new city queen throughout Utah County this sum-mer and during the coming year. Contestants this year are Lisa Hollis, first runnerup last year; Shellie Eggett, Miss Congeniality last year; Nicole Wadley; Michelle Palmer; Tammy Bird; Michelle Austin; Shalaine Grimshaw; Susan Southam; Robyn Richards; and Kimberly Lamoreaux. Shari Card was the second run-nerup last year. Marlene Simmons is chairwoman for the pageant. She is assisted by Linda Kelly; Karen Smith, contestants; Donna Ruf, judges; Linda Giles, publicity and tickets; Bobbie Beagley, programs; Liz Curtis, special arrangements; and LaMay Gudmundson, promotions. The Strawberry Days Queen Scholarship Pageant will be held Saturday, May 2, at 7:30 p.m. in the Pleasant Grove High School Auditorium. Tickets are available from any contestant or at the door for $3.50 or $12 per family. The theme for the pageant is "America Celebrates," in honor of the 200th anniversary of the U. S. Constitution. Tina Story, last year's queen, will crown the new Miss Pleasant Grove at the conclusion of the evening's activities which will include a production number by all of the contestants, talent numbers and evening gown competition. The new queen will reign over Strawberry Days and represent the city at other community events d Insightt to provide - calble TV to LieddDH "Insight Communications" returned to Lindon City Council April 21 where they received ap-proval to provide cable service to Lindon City. Construction will be underway within 45 days and the system should be completed before fall. 9 Insight Communications provides service to the neighboring cities, Pleasant Grove and Orem. The service will include the new "Festival," a family movie channel where the only "R" rated movies shown are rated because of Installation fees will be waived as the initial service is hooked up in the city. 1 Mayor McMillan reported on a J meeting attending with the other I county mayhors. He voiced a negative opinion to the conducting of a study for landfills meeting EPA requirements. Each city would be required to pay $1500. Lindon has just gone through the zoning and purchase of land for a landfill expansion. He felt it was not right for Lindon to pay the same fee as Provo and it is not necessary at this time. The fees at the landfill will be increased from $10 to $17.50 a ton on July 1. The south end of the county is in trouble, but the north end has made plans for the future with the recent expansion. The wind is the biggest enemy at the landfill. Double charges have been racking up but more and more loads are covered. The landfill is , experimenting with new blow fences. The mayor reported the Utah Risk Management Association fees will increase, but the cities who presented multiple claims will have higher fees. Lindon City will receive its own zip code in about 30 days. It was noted Lindon had a post office before Pleasant Grove did, but for a long time Lindon residents have received their mail with the Pleasant Grove zip code. Letters will be sent to dog owners to purchase dog licenses. The city will expect payment within 10 days. The brochure for the secondary water system will soon arrive in Lindon homes. Whether or not the project is undertaken will be determined by an election following public hearings. Two injured in mishaps A man received a possible broken leg when he apparently walked out into the roadway at 411 E. State Road on April 25 where he was struck by a car. According to Officer Jay Thorn-ton, the pedestrian was intoxicated at the time. He was taken by Pleasant Grove ambulance to American Fork Hospital for treatment. There was no damage to the car that hit him. The name of the driver of the car was not released. In the other accident, a five-year-o-ld got into a car at her home, turned on the engine and drove the car across a sidewalk where it struck a child and then ran into trees and shrubs. The injured child, Kenneth H. Gordon, was transported by private vehicle to American Fork Hospital where he was treated for scrapes and bruises to his back and legs. Officer Lonnie Wilson in-vestigated. Firemen's Breakfast Saturday a Saturday, May 2, will be the j annual Firemen's Breakfast in f I Pleasant Grove. The event will be held at the Fire Station at Main and f Center Streets from 6 to 11 a.m. t Ham, eggs, hash browns, pan-cakes and a beverage will be ser- - : ved. The cost is $2 for adults and $1.50 for children. Proceeds will be used to purchase fire fighting equipment and to help with other civic projects. Smokey the Bear will be in at tendance for the benefit of the children. Fire engines will be on display as usual. This event is sponsored by the Firemen's Auxiliary. The firemen do the cooking. Everyone is invited to attend. ' - - "fc. - " - I i v. u r I V i.ii.'. i i n i , -- ..I Jreparing for the annual Firemen's Breakfast May 2 are, L--R, Fred Keetch, Ford West, .lyman Smith, Don Fenton, Bill Robbins and Calvin Mills. Garden Club annual sale The Pleasant Grove Garden Club will hold its annual bedding plant sale on Saturday, May 2, from 7 a.m. to 11 a.m. in front of Radmall's Hardware, 15 S. Main Street. The sale is held each year in conjunction with the Firemen's Breakfast. Customers are invited to visit the flower sale before or after they attend the breakfast. A variety of plants will be for sale at reasonable prices. The plants have been grown and cultivated by members of the Garden Club. Proceeds from the sale are used to sponsor civic projects. Mutual Dell opens doors An open house will be held at Mutual Dell Camp facilities in the South Fork of American Fork Canyon on Saturday, May 2. and again on Saturday, May 9. The facilities will be open for viewing between 9 a.m. and 12 noon each of the Saturdays. Purpose of the open house is to let members of the nine LDS stakes who support the facility to view the newly remodeled facilities. A $600,000 building project was completed at the site in the fall of 1986. These facilities are now available for the scheduled use of the 68 wards in American Fork, Alpine, Highland, Cedar Hills and Pleasant Grove who pay for its maintenance. The project includes the lodge which is equipped with a kitchen, restrooms, space for dining and programs for 250 people; and the ward camp with its covered pavillion and tables for 200, charcoal grills, nine eight-perso- n family camp units and space for recreational vehicle camping. The 50 person group picnic area has seven eight-foo- t tables, charcoal grills, lighting and electrical hook-ups; and the youth camp has eight camp units, eith with three eight-foo- t tables, a fire circle, charcoal grills and lantern post. A 'arge activity circle with a fire pit md bench seating for 96 is available for campfire programs. There is also an amphitheater with stage and seating for 300 people. New sod has been laid on the Softball field, and a new volleyball court and horseshoe pits have been constructed. Also part of the project were new restroom facilities with paved paths and lighting; a new water system and storage tanks; parking facilities and a caretakers cabin. Participating stakes are American Fork, American Fork East, American Fork North, Alpine, Highland, Manila, Pleasant Grove, Pleasant Grove East and |