Siletz news II., January 01, 1990, Page 10, Image 10

page 10
Siletz News II
January, 1990
(Task Force, continued from page 9)
Comments: The Committee was concerned about the
contract with Caffall Brothers Forest Products. It ap­
pears that a considerable amount of interest is paid to
Caffall Brothers.
The Mill Creek Contract, Page 2, Paragraph 5,
states that STEDCO will pay a prime plus 2 percent on
all direct costs paid (e.g. stumpage, logging, yard, etc.).
The income statement for the Mill Creek Sale shows
logging costs of $281,476.00. If Caffall Broths paid and
charged interest on those costs, STEDCO would pay
Caffall Brothers approximately $36,000.00 in interest.
Placing STEDCO funds in CD's, etc., at 6-8%
interest while paying Caffall Brothers 12-12 3/4% inter­
est does not make good business sense.
The Committee asked for the total interest paid to
Caffall Brothers from the Long Sam sale to date.
The Evergreen Enterprise has approximately
$180,00 in moss warehoused. When sold, will change
their net loss to a $151,000.00 profit.
The Salmon Enterprise has had it's problems and is
showing a $66,569.00loss. Their financial statement for
9/1/89 shows total sales of $7,921.00. Their total sala­
ries were $33,942.00. Salaries exceeded sales by
$26,021.00.
Annual salaries for the current Salmon Enterprise
staff is $57,740.00. Tom Staggs received a $7,500.00
salary increase 10/1/89. The Committee feels that pro­
duction hosts, salaries, and general expenses (estimated
at approximately $100,000.00) makes creating a profit
questionable.
There was no report for the investment with
LeBeaux. It seemed to be just written off as a loss.
Basedon the contract, LeBeaux equipment and inven­
tory now belongs to STEDCO.
M & M dentures was an $8,000 CD set up at
Cashmere Valley Bank for Mr. Moody. S'l'EDCO will
profit only from the interest on the CD.
17. Actual Cost of Swan Avenue Road.
Quade Construction $62,271.00. Engineering
Costs $4,000.00. Attorney Fees to Date $1,548.00.
Total $67,819.00.
18. Petitions Being Circulated?
No-one has seen any.
19. Personnel Problems?
There are a lot of rumors about Personnel prob­
lems in STEDCO. The Committee just did not have the
time to look into all of them. There was definitely
personnel problems in the Salmon Enterprise. The
Committee concentrated on the S almon Enterprise prob-
lems/rumors. [The report cited four specific rumours
and the Task Force responses. The first three established
that Royce Strong was fired by Tom Staggs, that "there
is no documentation in Royce's personnel record to
support his suspension on 10/26/89 or his termination on
11/1/89," and that Delores Pigsley was not involved in
Royce's firing. The fourth satement suggested that per­
sonal relationships between two STEDCO employees
resulted in workplace favoritism.]
20.
Management Problem?
There are management problems in STEDCO.
The Committee did not concentrate on discovering
management problems. Problems in management sur­
faced during the 2 1/2 days of interviewing staff, review­
ing records and financial reports, contracts and actual
financial status of STEDCO enterprises.
A.
Salmon Enterprise.
1)
The Salmon Enterprise has been mis-managed
since it’s inception January 31,1989.
2)
Bad Fish was purchased and thrown in the garbage
as far back as March 1989.
3)
$41,503.00 worth of fish purchased. Only
$7,921.00 in sales.
4)
Freezer inventory starts with June and goes to
August 18th. No others are available.
5)
Tom Staggs has been supervisor since June 1989,
but is not aware of the financial status of the Enterprise.
[One sentence deleted]. Tom stated that he was aware of
problems in September, but took no corrective action
other than to tell Ted.
6)
Personnel problems in the enterprise.
7)
Management did not take advantage of the 6
months training agreement with ORPAC-LOX.
8)
Nothing has been done to investigate or determine
suspected theft of fish.
9)
Inventories are submitted to management bi­
monthly, but they are not used by management
10) All staff are given fish to take home.