Spring 1983

SOULÉ STEEL NEWS

"WE ARE AN EQUAL OPPORTUNITY EMPLOYER"

Volume VII — Spring 1983 Issue — Number 14

Soulé Enters the Real Estate Business

Edward L. Soulé, Sr., founder and Chairman of the Board, once stated that "Soulé Steel Company is in the steel business, not the real estate business." This statement, made early in the history of the Company, meant "Let's put the emphasis on fabricating and erecting reinforcing bars and let the real estate people worry about selling and developing land."

Today, our founder would probably be amazed by the diversification as well as the growth of the Company. Not only are we in the steel business, but we are also involved with many other products and services — including real estate.

With the tremendous leap in the price of land over the last 10-15 years, Soulé Steel Company found itself slowly becoming more and more involved in the real estate business. Where land had once been plentiful at a relatively small cost, quickly rising values placed a premium on maximizing facilities and capabilities into centralized locations. Having bought and leased land for operating purposes, the Company quickly learned how some excess properties could be converted into unexpected profits. With this realization, the evolution of Soulé Steel's involvement in the real estate business began.

It all started in the early 1970s when Soulé Steel took a hard look at some of its product lines and businesses. As a result of this analysis, several product lines and businesses were eliminated — the ones with little or no future potential. The Company redirected its efforts to those product lines which had proven to be profitable and toward other new product ideas which had great potential. As part of this product reorganization, the Company closed down its plant and facilities in San Francisco in 1974, moved its head quarters to Walnut Creek, and decided to lease its office and warehouse facilities in San Francisco. It was at that point that the Company realized it was in the real estate business.

In Ventura, where we had formerly operated a reinforcing fabricating facility, we leased the property to a good customer, Vista Steel Corporation. We also found that approximately three acres of land next to our Carson Operations Center were available for farm usage. These are now being rented out to T&F Farms for use in growing agricultural products, with a double benefit — the land is being put to good use and is producing revenues for Soulé. This piece of property is also being considered for additional industrial building for lease, which would improve our return on investment.

The Newark reinforcing-fabricating operation is currently being moved to Union City, thus making the warehouse and fabricating facilities in Newark available for other uses. It is anticipated that this property will also be sub-leased in the near future. A similar situation has arisen in Sacramento, where we are using only a portion of our fabricating facilities. The remainder of the space is being leased to another company.

(Continued next page)

*Photo: Bob Rackerby (l) and Pete Soulé*

*Photo: An aerial view of the San Francisco plant*

As Soulé Steel's involvement with leasing and other real estate ventures increased, so did its commitment. On August 26, 1980, a separate subsidiary, Soulé Properties, Inc., was set up. At the same time, an outside real estate consultant, Donald J. Bruzzone of California Development, Inc., was brought in to provide professional advice in relation to our total real estate involvement.

Soulé Properties, Inc. initially got its feet wet in the real estate business by entering into a joint venture with another company to form a new enterprise, Trinity Development. Trinity is in the process of developing [illegible] for resale in Marin County, adjacent to the Marin County [illegible].

At this point, it was felt that the Company had to consolidate its real estate ventures to produce maximum profitability. Lowell Carstensen, Executive Vice President–Operations and Development, was put in charge of all property and real estate development. Bob Rackerby, Supervisor and Operations Analyst, Property Management, was assigned to work with Lowell. Peter Soulé, Property Manager–San Francisco, supervises leasing and operation of the major facility in that city. This team is working hard to ensure that the Company has a cohesive strategy with regard to its real estate ventures at the various sites.

To date, Soulé Steel Company is leasing approximately one million square feet of office, plant and land area to outside tenants. Currently, the largest leasing operation is where the San Francisco plant used to be. An area of 174,975 square feet of plant, yard and office space is available for leasing. At the present time, between 80% and 90% of the plant facilities and between 20% and 30% of the office space have been leased out.

Overseeing this vast leasing project keeps Pete Soulé in constant contact with real estate brokers in order to attain one hundred percent occupancy.

Situated at Third and Army Street in the Potrero Hill District of San Francisco, this site is proving to be a good income source. With just a small amount of guttering and roof renovation, the buildings were ready for occupancy by a variety of lessees. The largest tenant is Frederick Meiswinkel, Inc., producers of stucco and metal facades for buildings. Many of the other lessees use their areas for storage, including Crocker National Bank, who store their portable offices. Ohbayashi-Gumi, Ltd., who were the General Contractors with Soulé Steel as a sub-contractor on the Westside Transport Project, lease yard space in which to store their equipment. Another large tenant is James A. Nelson Co., who are leasing plant and office space, including a blueprint room.

There is no question that the basic business of the Soulé Steel Company is the fabrication and utilization of steel. However, the foregoing certainly demonstrates that Soulé Steel has undergone a great change in its philosophies and operations in recent years. Although our name and primary business will always remain the same, it would appear that Soulé Steel Company is definitely in the real estate business to stay!

*Photo: Bob Rackerby (l) surveys some of the 81,738 sq. feet of the San Francisco plant being leased to Frederick Meiswinkel, Inc.*

*Photo: Yard space in San Francisco being leased by Ohbayashi-Gumi, Ltd. to store their equipment*

*Photo: Part of the office space in San Francisco being leased to James A. Nelson Co.*

John Richardson Joins Soulé Buildings

John Richardson has been appointed as Supervisor of Estimating for Soulé Buildings. He will be responsible for the general supervision of the Estimating Department, along with continually updating the pricing structure and instigating new pricing policies.

John has over 25 years' experience in the metal building industry, working previously with Pascoe Building Systems and Butler Manufacturing. He has a Bachelor of Science degree from Oregon State University and is a resident of Claremont, California.

Jon Ecklund Appointed Manager-District Sales

Soulé Buildings has appointed Jon Ecklund as Manager, District Sales. He will be responsible for marketing the Company's products and programs in the Central California district.

Jon has extensive construction industry experience, most recently operating his own company as a planning consultant. Previous to that, he was a sales representative for a metal building general contractor and also a city planner. He resides in the San Luis Obispo area.

Jim Rountree Promoted to Manager-Dealer Sales

Soulé Buildings has announced the promotion of Jim Rountree to the position of Manager, Dealer Sales. His area of responsibility will be the domestic dealer organization covering the eleven Western States.

Jim, who joined Soulé in June 1981, has extensive experience in the metal building industry. Most recently, he was Manager, District Sales for Southern California. He is a resident of Diamond Bar, California.

Introducing . . .

*Photo: JIM FARRELL, Chairman of Saf-Loc Systems, Inc., Soulé's new Colorado subsidiary. Members of the Saf-Loc crew were introduced in the Winter 1982 issue of the Soulé Steel News. Unfortunately, Jim's photograph was not available for inclusion in that issue. Our apologies for this omission.*

Steel Buildings Relocate Sales Office

On December 1, 1982, Soulé Steel Buildings Division relocated their San Francisco sales office. Their new address is located at the Sales Mart, 1485 Bayshore Boulevard, San Francisco.

*Photo: Pictured in their new offices are (l to r): George Woods, consultant; Pete Heineman, Otis Gravem, and Kay Low.*

20-Year Service Award

*Photo: Joe Martinez, Maintenance Mechanic, Carson Steel Mill*

15-Year Service Award

*Photo: Carlos Figueroa, Furnace Heater, Carson Steel Mill*

Welcome Back

*Photo: Mai Cong Pham, Detailer, Steel Buildings, Carson (one year previous service)*

5-Year Service Award

Not pictured Donald Weathers Mold Operator Carson Steel Mill

Welcome Aboard

*Photo: Brad Cole, Operations Manager, Salt Lake City*

*Photo: Nita Erwin, Engineering Clerk, Salt Lake City*

*Photo: Richard S. Burns, Estimating Supervisor, Newark*

10-Year Service Awards

*Photo: Otis Gravem, National Accounts Representative, Steel Buildings, San Francisco*

*Photo: Ernest Walker, Jr., Experienced Helper, Steel Buildings, Los Angeles*

*Photo: Samuel Contreras, Experienced Helper, Steel Buildings, Los Angeles*

*Photo: Pat Cutrone, Payroll Clerk, Accounting, Carson*

*Photo: Clarence Mackey, Punch Press Operator, Steel Buildings, Los Angeles*

*Photo: Delores M. Engelberg, Plant Secretary, Production Control Dept., Los Angeles*

*Photo: Shirley Orsborn, Supervisor-General Ledger, Accounting, Carson*

*Photo: Ron Wilberger, Shop Lead Man, Reinforcing, Salt Lake City*

*Photo: Jeffrey Penick, Bender Operator & Truck Driver, Sacramento*

*Photo: Leonard Favors, Experienced Helper, Carson Fence Posts*

*Photo: Roy Weaver, Fabrication Shop Leadman, Phoenix*

*Photo: Michael Newcomb, Working Foreman, Sacramento*

Birth of 400-ton Club

*Photo: Members of the 400-ton Club from the Melt Shop; standing (l to r): Jim Thacker, General Foreman; Anthony Rankin, Furnace Operator; Jim Abel, Superintendent; John Minech, Melter; and Eric Bonzer, Furnace Operator; kneeling: Stoney May, Melter; and Rudy Vasquez, Furnace Operator.*

November 19, 1982, was an auspicious day for the crews in the Melt Shop at the Carson Mill — they set a new record. For the first time, one furnace was used to melt more than 400 tons in a 24-hour period.

This accomplishment was made possible by using the new Nikko Jet Arc System. The new machinery was installed, along with a major renovation of the continuous casting machine, when Soulé made a large capital investment in the melt shop during 1982. The new equipment can produce as much metal with one furnace as was previously produced by two. In addition, the electricity consumption has been reduced by between 20% and 25%, resulting in another major cost saving.

During preparations for the start-up of the new equipment, Jim Abel, Melt Superintendent, and George Leitner, Project Manager, issued a challenge to the melt shop crews and supervisors: If 400 tons of billets could be produced from one furnace in one 24-hour period, special Soulé Steel jackets would be presented to all mill employees. In addition, all melt shop employees would be made charter members of the "400-ton Club" with special patches on their jackets and a commemorative plaque for the furnace control room.

The challenge was met much sooner than expected. Congratulations to all responsible for this new record.

Richard Williams "Drafter of the Year"

Soulé Buildings Division, Drafting Department, began a new Achievements Awards Program in January 1982. This awards program recognizes outstanding work performed by individual drafters.

The award is based on an evaluation of the work performance covering the period January through November. The work performance of all the drafters that were eligible (employed before January 1) was rated by their group supervisor. The rating system is based upon such factors as accuracy, speed, product knowledge, etc.

This year's winner, Richard Williams, was presented with a gold pen set by Dick Graf, Supervisor of Drafting. The drafting room was also presented with an awards plaque with name plates for adding future winners.

This year's awards were presented during a luncheon held at the Ramada Inn, Carson, on December 16. In addition to the drafting department, engineering personnel Andy Carter, Steve Hardwick and John Kaskavalciyan attended the luncheon.

*Photo: Larry Heffner (far left), President of the Buildings Division and Andy Carter (far right), Manager, Engineering, congratulating Richard Williams (center) as "Drafter of the Year."*

News Items

Carson

Soulé Buildings Division Announces:

Effective September 1, 1982, the Estimating and Sales Service Departments of the Buildings Division were combined into the Contracts Services Department. Gene Hopcus is the new Manager of Contract Services, and Marvin DePriest has been transferred to the new department as Order Entry Supervisor.

Effective September 15, 1982, personnel changes were made in the Engineering Department.

Ron Peterson was promoted to Supervisor—Product Development, replacing Gene Hopcus. Nick Cladinos was promoted to Group Supervisor—Detailing, replacing Ron Peterson.

John Kaskavalciyan joined the Carson team from the San Francisco Operations Office. John, a Soulé employee for 19 years, brings a lot of experience and technical expertise to the Sales and Engineering Department at Carson. In his new position as Chief Engineer, John will report to Andy Carter and have the responsibility for job engineering and drafting.

Steve Hardwick assumed the position of Manager–Research and Development. He will be directly responsible for the development of Carson's Engineering Computer Systems, Interactive Graphics Program, and Design Standards.

Effective January 16, 1983, Wallace Gettman was appointed Manager—Engineering, Steel Mill Operations. He will be responsible for all engineering and project related work. This appointment follows the assignment of Ron Lee to the position of Superintendent–Maintenance.

"A Hole in One"

On December 18, 1982, Bill Furst, Supervisor of Materials at the Carson Mill, made a hole in one on the twelfth green of the Los Amigos Country Club in Downey. This is a feat every golfer wishes for. CONGRATULATIONS, BILL!

Fresno

Richard Miller, Fresno Fabrication Shop, has had an unusual hobby for the last nine years. Richard takes such items as bolts, shovels, gears, old bicycle parts, old tractor parts, wagon wheels, mesh, and — the most important ingredient — REBAR to add beauty as well as creativity to his yard. Out of these items, he has created such wonders as a dinosaur, spider's web gate, and a wagon.

Richard's yard is definitely an improvement to any neighborhood.

Manny Regalado, Fresno detailer, and Linda Price of Fresno were married on December 4, 1982 in Reno, Nevada. The bride and groom met at the Soulé Carson office open house in November 1981.

Enjoying another new experience, Manny and Linda left Fresno by AmTrak on the Zephyr for Reno. They stayed at the MGM Grand in the bridal suite and plan a March honeymoon in Acapulco, Mexico.

Walnut Creek

"Cost-cut Winner"

Dona Davis, Executive Secretary to the President and the Financial Officers at Soulé's headquarters, is the winner of a weekend for two at the Marriott Hotel of her choice. Dona submitted the following suggestions to a publication called Travel Smart for Business:

"We have found taxicabs to be sometimes less expensive than renting a car for the entire day. If the traveller plans to go to an office and stay there — and does not require transportation during the day — a round-trip taxi ride can work out less than the cost of a car rental."

Los Angeles

Thirty-eight Soulé Employees at the Los Angeles Plant, Carson Operations Center and Carson Steel Mill have been certified in Basic Cardio-Pulmonary Resuscitation. Classes were held throughout 1982. Each employee was required to attend a four-hour class, which included a film and manikin practice.

Mona Doyle, LVN, the Los Angeles Plant Nurse, instructed the classes in conjunction with the American Heart Association. Further classes are anticipated in 1983, along with first aid classes for plant, mill, and field workers.

Double congratulations are in order for Earl and Lou Rhodes. They have a new granddaughter, Lindsy Marie Rhodes, born December 6, 1982, and they celebrated 38 years of marriage on December 9, 1982.

Congratulations to Eddie and Anna Marie Perez who have just had their fourth son, Robert Edward, born on December 2, 1982. Robert weighed in at 7 lbs. 2 ozs. and was 21" long.

Unique Building Design Prevents Livestock Loss

*Photo: The building being used by Creekside Farms in Sonoma is 42 feet wide by 125 feet long by 8 feet high.*

Soulé Buildings in Carson, California, is now offering a new design in steel storage buildings for livestock which can significantly reduce the death rate of young calves. The building, specially adapted from a standard mini-storage steel building, is used to house calves for the veal market.

One such building has recently been completed by Western Building Systems, Inc., a Soulé dealer, for the use by Creekside Farms in Sonoma. Prior to moving their calves from a wood-frame building to the new steel structure, Creekside had experienced a death rate of 4%. After completion of the new building, the death rate decreased to 1%.

The unique aspect of this steel building is the insulation and ventilation system, which cannot be duplicated in traditional wood-frame construction. The system maintains a constant temperature and air flow which reduces loss of young calves due to diseases.

This new building design is available through Michael Q. Jones, General Contractor, also a Soulé dealer. It will be featured at the Stockton Agricultural Exposition in January and the California Farm Equipment Show and International Exposition in February in Tulare.

SPRING 1983 ISSUE

SOULÉ NEWS

Published Quarterly by the SOULÉ STEEL COMPANY 1910 Olympic Boulevard, Suite 151 Walnut Creek, California 94596

HOWARD SOULÉ Editor in Chief

DARLEEN HUCKINS, Editor — South BARBARA BURNHAM, Carson CARLEY SMITH, Walnut Creek CAROL RAMIREZ, Fresno JOHN ROGACHENKO, Roving Reporter JANET NEUBERT, Newark PAT ROUNTREE, Carson LYNN LABER, Sacramento DEE ENGELBERG, LA Reporter PETER SOULÉ, San Francisco FURMAN DAVIS, Phoenix LINDA LAMOTHE, Carson Reporter LORRIE BURTON, Salt Lake City SHERRY ARROYO, Helper MARIE HAYWARD, Denver