Letters to the Editor for Oct. 7, 2009

Severance pay already spent

To the editor:

Are you also disgusted with this whole recall mess? It was recently suggested that the names of the three sore losers be added to the recall ballot. Now that’s mighty tempting; add those three names and then see who is left standing when the dust finally settles.

The three city councilors pushing this recall might well be surprised to find themselves ousted, while councilors Dorrah and Calder remain on the council. But the present mess is bad enough. Let’s not make it worse.

However, I do feel that the grumpy three have just spent Mr. Brocato’s severance pay, the $9,000 or so it is costing the city to run the recall election.

Pete Sundin

Baker City

Brocato helped save company

To the editor:

I refer to a letter from Mr. (Gary) Dielman raising questions about Steve Brocato.

I cannot comment on Steve’s record as Baker City manager but I worked with Steve from 1985 to 1997 and was president of the leasing division of Cronos Containers before him. Cronos was a successful company built up by its chairman/CEO and majority shareholder Stefan Palatin.

Unfortunately, he started illegally taking money out of the company. This precipitated the resignation of the auditors, an SEC investigation and the termination of the company’s banking lines. Until Palatin was arrested in Austria on related charges in 1999, the rest of the senior management lived through what was probably the worst period of their working lives, trying to enable the company to escape from the control of an inspirational CEO who had gone off the rails.

A number of senior managers including myself resigned whilst others, including Steve, stayed on and tried to rescue the company. With pressure from banks, lawyers and the SEC, it was amazing the company survived and unsurprising that the financial results were poor. However, it did survive and prospers today thanks to the commitment and determination of the senior managers who stayed on, including Steve. No accusations or charges of wrongdoing were made against Steve and he was not even interviewed by the SEC. I don’t know the source of Dielman’s information on Steve’s career at Cronos but I fear that he may have been misled by someone who has an ax to grind.  

Steve left the container leasing industry because the industry is small and there were few openings; he also wanted to spend more time with his wife and young family. I worked with Steve for 12 years and disagreed with him frequently but I would never question his integrity, commitment and honesty. I am not qualified to say what qualities are required as a city manager but I reckon these would be a pretty good start.     

I can understand why Dielman raises the questions he does. I am concerned that on the incomplete information that he has been given, he has reached the wrong conclusions.

Nigel Stribley

Bucks, England