Policy Changes: One Pool, Advances, Loan Account, Capital Requirement, Minimum Delivery + Software Changes

Dear SPC Owners,

Loan Account
There is no maximum limit on the loan account currently.  There will be a limit of $80,000 effective November 1, 2019.  The current interest rate is 3.5% annualized set from July 1 thru September 30.  It is subject to change at the beginning of each quarter.  Owners that have used this benefit find they enjoy the convenience of not having to keep track of checks during the busy fishing season plus pick up some interest at the same time.  It is a “demand account” so you can transfer funds from your loan account simply by contacting Sitka office.
As per the “Office Updates” Cooperator that went out on 7/24/19, Loan Account Withdrawals are now processed through the Sitka office.

Please forward all loan and gear account requests to Stacey Messerer in the Sitka Office. (907) 747-5811. Stacey’s email is smesserer@spcsales.com.
One major benefit of the big change is that tasks previously requiring a call to Bellingham can now be accomplished in the Sitka office. This includes:
•             Check loan account Balances
•             Write checks or Initiate ACH transfer from loan account
•             Check gear account balance
•             Pay off gear account with loan account funds
•             Receive payments on gear account
•             Reprint fish tickets and statements
•             Setup auto deposit of fish ticket checks
•             Email settlements instead of paper copies

Minimum Delivery Fee          
Each owner is required to deliver 5,000 pounds of product each year. This minimum can be reached with either pool or cash pounds.  The fee for not meeting this requirement is 10 cents per pound for each pound that is short of the 5,000-pound requirement.  Owners who have received the Golden Halibut Award are exempt from this requirement.

Minimum Capital Investment Requirement. 
Each owner has an annual minimum capital investment obligation of $500.  There is a maximum capital investment obligation equal to 10% of their gross pool production with a maximum of $2000. There currently is a cap of $15,000.  This requirement is deducted from second advances and the final settlement.  You will receive a bill in April if there are not enough funds to make this deduction from settlements.

Owners can sell for cash or pool during the summer troll season.  The only exception to this is FAS salmon, they are required to pool. Winter and spring kings must be sold for cash. 

One Pool
Pool production is settled on a percentage of dock method.  All pooled fish will end up with the same percentage of the dock price that is listed on your ticket when you deliver.  For instance, if the settlement price for the pool works out to 10% over dock then everyone in the pool will end up with 10% over the dock price on their fish ticket.  Below is a hypothetical table to demonstrate this.

Date of delivery   Dock price    % over dock    Final Price   Amount over Dock
March 20                     $5.00               10%       $5.50              $.50
April 30                        $6.00               10%        $6.60              $.60

Advance Increase changes
When you deliver and pool you now receive 80% of the dock price.  It used to be 70%. 
In January second advances will be 90% of expected final settlement, up from 85% previously.

Software change
The beginning of this fiscal year we updated our software.  It is a big change for all of us in the company.  Thank you for your patience and understanding as the staff learns the software.

Jerry Smith and Tamara Snyder