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HomeMy WebLinkAbout01022019 PACAB Packet City of Seward Port and Commerce Advisory Regular Board Meeting H-A P Pisr Argt, ,4tT,1?1, N; E ' YEAR' *milt .suIPA 41) % r• "16 7441#4. o'V'4 f P Of SeNt Ze4ct -71 January 2, 2019 ThP City of cPxxiarrl A lacka SEWARD PORT AND COMMERCE ADVISORY BOARD • 4L4Sy`P JANUARY 2,2019 12:00 PM Council Chambers REGULAR MEETING Christy Terry 1. CALL TO ORDER Chair Term Expires 07/2019 2. PLEDGE OF ALLEGIANCE Bruce Jaffa Vice Chair 3. ROLL CALL Term Expires 07/2021 Carl Hughes 4. Citizens' comments on any subject except those items Board Member scheduled for public hearing. [Those who have signed in Term Expires 07/2020 will be given the first opportunity to speak. Time is limited to 2 minutes per speaker and 30 minutes total time for this Colby Lawrence agenda item] Board Member Term Expires 07/2019 5. Approval of agenda and consent agenda [Approval of Laura Schneider Consent Agenda passes all routine items indicated by Board Member asterisk (*). Consent Agenda items are not considered Term Expires 07/2020 separately unless a Board Member so requests. In the Lynda Paquette event of such a request, the item is returned to the Regular Board Member Agenda.] Term Expires 07/2021 6. SPECIAL ORDERS, PRESENTATIONS AND Erin Lemas REPORTS Board Member Term Expires 07/2021 A. AKRR- Christy Terry Page 3 Jeff Bridges B. Chamber Report - Cindy Clock Interim City Manager C. Harbormaster Report—Norm Regis Page 4 D. Administration—Brennan Hickok Brennan Hickok Assistant City Manager Norm Regis Harbor Master GeNeil Flaherty Executive Liaison City of Seward, Alaska PACAB Agenda January 2, 2019 Page 1 P1 7. UNFINISHED BUSINESS—None. 8. NEW BUSINESS *A. December 19, 2018 Minutes B. Approve Resolution 2019-01 —A RESOLUTION OF THE SEWARD PORT AND COMMERCE ADVISORY BOARD (PACAB) RECOMMENDING COUNCIL APPROVAL OF PACAB PRIORITIES FROM FEBRUARY 2019 to FEBRUARY 2020 Page 5 C. Approve Resolution 2019-02 - A RESOLUTION OF THE SEWARD PORT AND COMMERCE ADVISORY BOARD (PACAB) RECOMMENDING COUNCIL AUTHORIZE AND PROCEED WITH A WATER AND SEWER RATE STUDY Page 7 D. Motion to approve Annual Review updates to the Seward Marine Industrial Development Plan Page 9 E. Review PACAB Annual Report to Council Page 13 9. INFORMATIONAL ITEMS AND REPORTS A. PACAB Goals 2019 calendar Page 14 B. Copy of The Western Alaska Community Development Quota Program (2018 CDQ) Page 16 C. Joint Work Session - PACAB with P&Z Notice for January 22, 2019 6PM Page 51 10. BOARD COMMENTS 11. CITIZEN COMMENTS [5minutes per individual—Each individual has one opportunity to speak] 12. BOARD AND ADMINISTRATIVE RESPONSE TO CITIZEN'S COMMENTS 13. ADJOURNMENT City of Seward, Alaska PACAB Agenda January 2, 2019 Page 2 P2 ALASKA RAILROAD January 2, 2019 Port and Commerce Advisory Board Port of Seward City of Seward TEL 907.265.2209 Report to the Port and Commerce Advisory Board 2018 Vessel Traffic- • 166 large vessels including USCG; Fuel and Freight Barges; Research and Fishing Vessels; Landing Crafts and Tugs; long term dockings for maintenance and repairs • 69 Cruise Ships with a total of 236,909 passengers. November and Upcoming Events at the Cruise Ship Terminal- • City of Seward started Archery Sessions Wednesday nights from 6-9PM. • Marathon Wrestling will utilize the Cruise Ship Terminal for their practices. • Seward Safety Ball February 23, 2018 • Marathon Wrestling Tournament March 1 and 2, 2018 Other Items- • Global Diving started piling repairs on the Cruise Ship Dock. This is our annual Cruise Ship Dock maintenance and will continue through the winter. • Real Estate Senior Team meeting with Cruise Ship Companies in Miami this January. • I don't normally share our Monthly Financial updates, but quite often the ARRC Port of Seward's revenue exceeds our projections for example a note from our Finance Director for November: Passenger revenue and Real Estate revenue both also outperformed revised budget, contributing another $0.3 million to the net income variance. Activity at the freight dock in Seward and lease and permitting activity drove the variance in Real Estate revenue while higher than budgeted ridership drove the variance for Passenger revenue. ChristyTerry, CPE Seward Port Manager terrycakrr.com 907.265.2209 office I 907.422.7071 mobile mailing: PO Box 95, Seward, AK 99664-0095 physical: 913 Port Avenue, Seward,Alaska web: www.AlaskaRailroad.com -ALASKA RAILROAD I'3 PACAB HARBOR 1. Conducted construction meetings with Hamilton Construction and R&M for the Breakwater project on 12-20-18 they are on a Christmas break. 2. The 330 ton will require a two day shut down when we pave the front of the lift pit. 3. The new fisherman float is in place, electrical and water are 99% done. 4. The harbor has 4 sites that will supply year round water, the end of F-float, the beginning of Z-float, the T-dock and on the upland trestle of F-float for local citizens. 5. Conducted construction meeting with PND and Hamilton Construction on 12-18-18 the concrete planks are being formed and made at Anchorage Sand and Gravel for South Harbor Launch Ramp 6. The South Harbor Launch Ramp is closed for the construction phase; the completion date is May 2019. 7. The South harbor launch ramp utility phase is complete. 8. The Nordic Viking has been raised and is in the SMIC yard being disassembled. 9. Polar Bear jump off is January 26`h P4 Sponsored by: PACAB CITY OF SEWARD,ALASKA PORT AND COMMERCE ADVISORY BOARD RESOLUTION 2019-01 A RESOLUTION OF THE SEWARD PORT AND COMMERCE ADVISORY BOARD (PACAB) RECOMMENDING COUNCIL APPROVAL OF PACAB PRIORITIES FROM FEBRUARY 2019 to FEBRUARY 2020 WHEREAS, the PACAB's responsibilities are listed in SCC§ 2.30.325 Powers and Duties; and WHEREAS, City Council and the PACAB held a joint work session on March 27, 2018 to review and update the current Priorities List; and WHEREAS,at its December 19, 2018 Regular Meeting the PACAB reviewed and refined the Priorities List. NOW, THEREFORE, BE IT RESOLVED by the Port and Commerce Advisory Board that: Section 1. The following List of Priorities through February 2020 is hereby approved by the Board and recommended to Council for their approval: PRIORITIES • Review taxes, especially vessel property tax • Review the Harbor Tariff as needed • Work to support industries to Seward including the Community Development Quota (CDQ) fleets and related industries, oil &gas related industries,transportation, vessel maintenance and repair facilities and commercial fishing • Help lead Seward Marine Industrial Center (SMIC) development • Prioritize City, State and Federal Priorities for Port&Commerce Initiatives(October) • Continue exploration of energy alternatives, sponsor energy fair and/or other continuing community education, develop a Seward Renewable Energy Plan, review Title 15 including process and procedures for alternative energy connection to city infrastructure • Continue to send a board member to the Alaska Municipal League (AML) annual conference • Create a Climate Action Plan(2020) • Support the Blue Pipeline Initiative • Review utility infrastructure for future growth and development PS Port and Commerce Advisory Board Resolution 2019-01 Section 2. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the Port and Commerce Advisory Board of the City of Seward,Alaska this 2nd day of January, 2019. THE CITY OF SEWARD, ALASKA Christy Terry, Chair AYES: NOES: ABSENT: ABSTAIN: VACANT: ATTEST: Brenda J. Ballou, MMC City Clerk (City Seal) P6 Sponsored by: PACAB CITY OF SEWARD,ALASKA PORT AND COMMERCE ADVISORY BOARD RESOLUTION 2019-002 A RESOLUTION OF THE SEWARD PORT AND COMMERCE ADVISORY BOARD (PACAB) RECOMMENDING COUNCIL AUTHORIZE AND PROCEED WITH A WATER AND SEWER RATE STUDY WHEREAS, PACAB's responsibilities are listed in SCC§ 2.30.325 Powers and Duties and includes providing input to the Seward City Council on policy and procedural matters involving the establishment and continuance of commercial activity, improving the quality of life and protecting the public's best interest; and WHEREAS,the last classification and rate study completed for the Water and Sewer Rates was in 1993, before that, 1983; and WHEREAS, since 1993 the City experienced significant growth and changing consumption patterns; and WHEREAS, City Staff reviewed with recommendations and the Seward City Council adjusted rates in subsequent years to the best of their ability; and WHEREAS,additional growth and needed expansion for both of these utilities is expected in upcoming years; and WHEREAS, a comprehensive rate study should at a minimum include an analysis of 1) Revenue Requirements, 2) Cost of Service, 3) Rate Design; and WHEREAS, prior to implementation public should have opportunity to comment on the recommended rates including the level of rate increases, impact on individual and groups of customers, and questions in regards to the methodology; and WHEREAS,the PACAB could be used as the forum for the rate study public process prior to final Seward City Council approval of new rates. NOW, THEREFORE,BE IT RESOLVED by the Port and Commerce Advisory Board that: Section 1. the PACAB recommends Council authorize and proceed with a Water and Sewer Rate Study in 2019. Section 2. This resolution shall take effect immediately upon its adoption. P7 Port and Commerce Advisory Board Resolution 2019-02 PASSED AND APPROVED by the Port and Commerce Advisory Board of the City of Seward, Alaska this 2nd day of January, 2019. THE CITY OF SEWARD,ALASKA Christy Terry,Chair AYES: NOES: ABSENT: ABSTAIN: VACANT: ATTEST: Brenda J. Ballou, MMC City Clerk (City Seal) P8 2018 SMIC Development Plan Review Action Item Status Responsible Party Monitor and repair South Breakwater anodes as needed Shiplift Lessee Yearly inspection. Report provided to harbor. Construct a north-south dock approximately 315' to Completed in 2018. increase moorage within the basin Harbor Surface the North Dock and staging areas with concrete, Completed in 2018. asphalt,crushed rock, or Roto-Mill (crushed asphalt) Harbor including the installation of drainage pipes Determine if the Barge Ramp is necessary Harbor Deemed necessary and repaired in 2018. If the Barge Ramp is deemed unnecessary, delete it to Strike from plan. create additional dock face Harbor Maintain the Fisheries Dock per lease agreement Fisheries Dock See lease for details. Lessee Repair or replace Syncrolift dock ladders, bumpering Ladders last replaced in 2013. Unknown date of system and corrosion control of the pipe piling in the Shiplift Lessee last protective coating application. splash zone by application of a protective coating Monitor maintenance of the Shiplift Dock per M&O Harbor receives Lloyd's inspection reports. agreement for the useful life of the facility Harbor Expand existing water and electrical systems in the boat Possible funding available for expansion in 2019 storage area Harbor from leftover grant funding. Encourage the development of full-service work stations Pad poured and construction started on heated for major maintenance/construction projects on vessels in washdown building in 2018. Projected completion order to limit the degree of maintenance allowed in the Harbor in 2019. storage area Provide additional restrooms as needed Two portable toilets provided during periods of Harbor peak usage. Consider clause in long term leases that includes fee for restroom maintenance. Provide engineer-designed drainage on the Uplands Harbor No engineer designs in place. Fill and grade the storage area to the correct elevation for Ongoing. the continued improvement of drainage Harbor Add to Article 18 of all new leases,under Maintenance, Completed in 2018. "Do not push snow into ditches." Harbor Seek a rate of return from the use of public facilities, land Continue to evaluate lease rates. assets, and equipment that will adequately cover deferred Harbor maintenance and replacement costs Examine electric rate method of calculating charges to Ongoing. users Finance Examine credit card rate method of calculating charges to Ongoing. users Finance Continue to review the Upland Boat Work Policy and Best Ongoing. Needs to be reviewed in 2019. Management Practices to ensure compliance with the Clean Water Act and Local, State,and Federal laws and Harbor regulations where they apply Ensure that the facility and uses are consistent with the Strike "Facility Use Plan" and replace with requirements of the Maritime Security Act of 2002 "Facility Security Plan". $250,000 for security 33.CFR 104.105 and maintain the Facility Use Plan Harbor infrastructure included in 2019 City Legislative Priorities. P9 Maintain an accurate map through survey and plat Community Ongoing. amendments for all current and future leases Development Adjust the annual rental payment every five years. The Adjustment due in 2020. Harbor looking at adjusted annual rental payment shall be the appraised fair historical increases for 2020/2021 budget. market rental value of the leased land at the highest and Harbor best use of the leased land Increase the annual rental payment every year in an Occurs in July per state calendar year. amount that reflects the increase, if any, in the cost of living for the previous year as stated in the Consumer Price Index, All Urban Consumers, Anchorage, Alaska Finance Area,All Items 1967=100("CPI'),as published by the United States Department of Labor, Bureau of Labor Statistics Review Table 15.10.225 to ensure the uses listed are Strike "Table 15.10.225" and replace with"Table compatible with the overall intent of the SMIC area Community 15.10.226". Joint work session with planning and Development zoning and PACAB scheduled for January 2019. Maintain access from Nash Road to the mouth of Spring Two more signs installed. Camping area will Creek and provide a camping area, and include signage of Harbor/Parks and become paid in 2019. the access route Recreation Maintain separation between the campground and Chain link fence installed in 2018. industrial uses. A chain link fence will be installed to Harbor separate the North Dock from the Campground Maintain a sign along Nash Road and central to the SMIC Updated 11/19/2018. area showing what lands are available for lease Harbor Maintain a fair market value base line from which leases Ongoing. will be negotiated Harbor Continue to encourage multiple users All Departments Ongoing. Evaluate utility rates to encourage more usage while Ongoing. ensuring a fair return to the public utility system Electric Continue to support the Seward Chamber of Commerce as Marine Services List needs updating. the marketing arm of the City of Seward All Departments Postpone paving interior SMIC streets until site and utility Ongoing. developments are completed Public Works Ensure that all lease sites include adequate area to comply Ongoing. with parking requirements set forth in the zoning code, Community and that lessees provide on-site parking for employees and Development customers Maintain signage in parking areas in support of the public Signs will be installed by North Dock when work docks Harbor is complete. Continue to work with the Alaska Department of Airport improvement project moving forward. Transportation and Public Facilities to improve airport Administration Additional $8.1 million requested for runway facilities and protect it from river flooding and erosion extension in 2019 Federal Legislative Priorities. Include construction of an additional public Or encourage construction by a leaseholder. restroom/shower facility in the City's Capital Project Plan Harbor/ Administration Improve paving, fill, fencing, and storm water drainage Two storm water projects included in 2019 City collection and treatment infrastructure as development Harbor Legislative Priorities. occurs P10 Evaluate each new development as to its impact on fire Ongoing. and police services Building Complete water system to loop all lines or upsize all cross- Ongoing. feeder lines and provide additional fire hydrants as needed Public Works Identify and reserve a site for a fire station to serve the Fire/Community Possible site identified. Fourth of July Valley area Development Include a separate fire station in Capital Project Plan,to Ongoing. accommodate more and/or larger equipment and supplies to support increased industrial development. Possibly Administration include a joint small office for Seward Police Explore possible cooperative arrangements with Spring Co-use agreement in place. Creek Correctional Facility staff to provide initial fire or Fire/Harbor other public safety needs Improve the water and electrical systems in areas Ongoing. associated with the 315 ton Travelift to accommodate Harbor increased public use Include in City capital planning the extension of electrical, Ongoing. sewer,and water throughout the industrial area Harbor/ Administration Support updating Seward City Code to facilitate utility Community Planning and Zoning Commission began extension development Development consideration of assessment districts in 2019. Continue to place all electric utilities below ground Electric Ongoing. Require compliance with all rules and regulations of the Required in lease language. Environmental Protection Agency and the Alaska Harbor Department of Environmental Conservation Maintain policies and procedures for monitoring and Ongoing. ensuring vessel storage/repair site clean-up Harbor Maintain and distribute use guidelines to lessees, Ongoing. operators,and users of the area for ship repair—including minor repairs,sand blasting, and painting Harbor Continue implementation and improvements of a program Ongoing. to control the separation,collection,recycling, and disposal of waste generated at the industrial center in accordance with established environmental policies and Harbor regulations/requirements of the KPB solid waste facility Continue to improve used oil collection procedures and Signs installed in 2018 instructing users to disposal facilities to meet the demands of user groups and Harbor contact harbor office for used oil disposal. to ensure a clean environment Improve methods to monitor waste material disposal to Ongoing. control and reduce the costs associated with the collection Harbor of solid and liquid waste materials Maintain a Storm Water Pollution Prevention Plan Ongoing. (SWPPP) Harbor Where possible, reduce scrap metal storage,trash, and Required by City Code. other materials that may be considered offensive to the Harbor casual observer P11 Ensure that all businesses comply with City codes Ongoing. regarding the collection and disposal of trash Harbor/Community Development Review public signing to ensure that it is adequate to the Community Ongoing. needs of the public and the City - Development Ensure private signing meets Seward City Code Community Review of all businesses occurred in 2019. Development Maintain a sign along Nash Road identifying and Ongoing. welcoming visitors to the Seward Marine Industrial Center Harbor Maintain a sign denoting lands for lease with contact Ongoing. information Harbor Support north and southbound directional signage to Chamber is actively working on this. SMIC at the corner of the Seward Highway and Nash road Harbor/ Administration Recognize that current zoning codes could limit necessary Community Ongoing. and appropriate development Development Support variance requests for height and set-back Ongoing. requirements as approved by the Planning and Zoning Community Commission Development Ensure that all structures, permanent or temporary,are Ongoing. constructed to adopted building and fire code standards Building • • • P12 Seward Port and Commerce Advisory Board 2018 Annual Report PACAB held 9 Business meetings 2018, and additional work sessions. No meetings were scheduled June through August during our annual Summer Hiatus. We had two Board Members leave- long time Chair Darryl Schaefermeyer and Board Member Brooke Andrews. New Members appointed by Council in 2018 are Erin Lemus and Linda Paquette. PACAB studied and recommended Project Priorities for February 2018- February 2019 project priorities: 1. Review taxes, especially vessel property tax. 2. Review the Harbor Tariff. 3. Work to recruit industries to Seward including the CDQ fleets and related industries, Oil & gas related industries, transportation, and commercial fishing. 4. Help lead Seward Marine Industrial Center (SMIC) development. 5. Prioritize Federal and State Priorities for Port& Commerce Initiatives 6. Explore energy alternatives (Wind, Solar, Geothermal and Hydroelectric, etc.) and alternatives to energy(BIO fuel, LNG etc.). We are excited about our proposed 2019 priorities including(will add general updated information prior to meeting but after approved by PACAB at the January 2nd Meeting). The Board was quite industrious in 2018 approving 4 Resolutions- PACAB priorities, Updated SMIC Development Plan, recommending buying into more shares of Bradley Lake Power and recommending moving forward with the feasibility study for Hydroelectric Power with Lowell Creek. In addition, Board Member Schneider spear headed the communities SMIC Grand Reopening and Ribbon Cutting at SMIC and the Board participated sponsoring the event. Other items Administration utilized the Board for public pretentions and comments included the South Harbor Launch Ramp plans and initial reviews of the Water and Sewer Tariffs during work session. The Board looks forward to a successful year in 2019 being useful to the Community, Administration and providing beneficial recommendations to Council. 1 P13 PACAB Goals Calendar 2019 Meeting Schedule Regular Meeting Work session REGULAR MEETING SUGGESTED AGENDA ITEMS January 2 • Review and discuss RES 2019-01 PACAB priorities • Review and discuss RES 2019-02 Seward Rate Study January 22 • Joint work session with P&Z commission February 6 February 20 March 6 March 20 April 3 April 17 May 1 May 15—End of • HIATUS - MEET AS NEEDED August September 4 September 18 October 2 October 16 November 6 November 27 December 4 December 18 P14 PACAB Goals Calendar 2018 Meeting Schedule Regular Meeting Work session REGULAR MEETING SUGGESTED AGENDA ITEMS January 3 • Review, discuss, approve Annual Report to Council January 17 • Energy Alternatives February 7 • Energy Alternatives February 21 • South Harbor Launch Ramp Discussion with PND March 7 • Energy Alternatives • PACAB 2018 Goals • Review 2018 Meeting Schedule March 21 • Review Water/Sewer Tariff April 4 • Presentation on Lowell Creek Hydroelectric Potential by Andy Baker, YourCleanEnergy • PACAB 2018 Goals April 18 • Review 2018 Meeting Schedule May 2 • PACAB 2018 Goals • Set 2018 Meeting Schedule May 16—End of • HIATUS August • MEET AS NEEDED September 5 • Review US Coast Guard Housing and Utilities • Look at Seward Airport workgroup • Sewer and Water Utilities update September 19 • Field Trip to SMIC—moved to OCTOBER October 3 • SMIC operations/review the SMIC plan • Sewer and Water Utilities update October 17 • Tour of SMIC November 7 • Vessel Property Tax • Sewer and Water Utilities update • Review the SMIC/ARCADIS plan • Review US Coast Guard Housing and Utilities November 28 • Review SMIC/ARCADIS priority list • Review City, State and Federal legislative priorities December 5 • Discuss and revise Annual Priorities Regular meeting will be • Sewer and Water Utilities update on the 19th and there will not be a work session this month December 19 P15 0 ATMOSP �G yF9i0 6, noRR O‘ Z z sO4)::,ARTMENT OF G00 NOAH The Western Alaska FISHERIES Community Development Sustainable Fisheries Quota Program October 2018 .. .4,.i \ 4 .;),,, , /1\ ,, .,,,ottowit c. . '. / ., •.. .. ‘ Aii ,,,,i . , .. I 1 4 01, A.,- . _ ,,:-.4v- .,- ..-.;4,......,,itti ,.. r ' 77: '1111%.. . .4$ . • i' , _'J '+ �. ` ' i*. N1 ir alk �/J,y.. - ' T j/,'[�t�`j"'.j///+y, 0„,Atmosp„oits ( ORA \ %104, ,p�MENt O< O" 40 NOAA FISHERIES The Western Alaska Sustainable Fisheries CommunityDevelopment Program Abstract: The western Alaska Community Development Quota Program(CDQ Program)provides western Alaska villages with the opportunity to participate and invest in fisheries in the Bering Sea and Aleutian Islands fisheries. Six non-profit corporations represent 65 communities with the purpose of economic development in western Alaska and goals to alleviate poverty,provide economic and social benefits to residents,and achieve sustainable local economies. Legislative action under Section 305(ix1)(C)of the Magnuson-Stevens Fishery Conservation and Management Act enabled allocation to CDQ groups of groundfish,halibut,crab,and bycatch species and a decennial review allows for program and allocation adjustments.The allocations were implemented in 1992 for pollock, 1995 for halibut and sablefish,and 1998 for multispecies groundfish. In 2016,the CDQ groups harvested 249,538 mt of seafood worth$120 million. In the same year,the CDQ groups processed 196,037 mt in seafood volume worth$213.9 million.This report reviews the regulatory landscape,allocative process,and changes in CDQ investments. October 2018 For More Information: NMFS Alaska Region Sustainable Fisheries Division Juneau,AK https://alaskafisheries.noaa.gov/fisheries/cdq P17 Accessibility of this Document: Every effort has been made to make this document accessible to individuals of all abilities and compliant with Section 508 of the Rehabilitation Act.The complexity of this document may make access difficult for some.If you encounter information that you cannot access or use,please email us at Alaska.webmaster@noaa.gov or call us at 907-586-7228 so that we may assist you. Page 2 P18 Table of Contents The Western Alaska Community Development Program 1 Introduction 5 CDQ Group Profiles 7 APICDA 7 BBEDC 8 CBSFA 8 CVRF 9 NSEDC 9 YDFDA 10 History of the CDQ Program 10 Magnuson Stevens Act 11 1996 Magnuson-Stevens Act Reauthorization 11 2006 Magnuson-Stevens Act Reauthorization 11 Al locations 14 Small Boat Halibut Fishery 19 CDQ Cost Recovery 21 Royalties and Revenue 22 Revenue from Investments 23 Vessel Ownership and Subsidiary Investments 26 Economic Development and Public Welfare 30 Benefits of the CDQ Program to Member Communities 31 References 32 Page 3 P19 List of Figures Figure 1 Western Alaska CDQ communities and groups 5 Figure 2. CDQ Group Revenue by Species,Average 2012-2016 14 Figure 3. IFQ and CDQ Halibut Fishery Allocations by Area 19 List of Tables Table 1. Overview of CDQ Communities 7 Table 2. Initial Pollock Allocations to CDQ Groups 14 Table 3. 2017 Groundfish Species CDQ and allocation percentages 17 Table 4. 2017 Prohibited Species CDQ and allocation percentages 18 Table 5. 2017 CDQ halibut and allocation percentages 18 Table 6. 2017 Crab CDQ and allocation percentages 18 Table 7. Annual halibut CDQ allocation by regulatory area,(2010-2017) 20 Table 8. 2017 Costs Recovery Fees 21 Table 9. Ex-Vessel and First Wholesale Volume and Value for CDQ Groups,(2007-2016) 22 Table 10. Wholly-owned and partially-owned subsidiaries of CDQ groups 23 Table 11. Direct investments in fisheries companies and vessels,by CDQ group as of 2018 26 Page 4 P20 Introduction The Western Alaska Community Development Quota(CDQ)Program is an economic development program associated with federally managed fisheries in the Bering Sea and Aleutian Islands(BSAI). The purpose of the program is to provide these 65 western Alaska communities the opportunity to participate and invest in BSAI fisheries,to support economic development in western Alaska,to alleviate poverty,and provide economic and social benefits for residents of western Alaska,and to achieve sustainable and diversified local economies in western Alaska. Figure 1 shows the geographic area of the CDQ groups and their communities. Figure 1 Western Alaska CDQ communities and groups Ua ss4.� - •� - ! Norton Sound Economic sus Mission Development Corporation Teiler.� I , White Mountein� k • Gimbel• SavoOnpaNome '- oot&i EMIT Shaktoolie i Unaiaklset• Stebbins• Saint Michdet Yukon Delta Fisheriesalca l' ".�Kon'k • Development Association Numani ._-.. '� r�eyi nq (Sheldon oni Scammon Bax kAountain Vtitape Her Ser' 6hevak NeWtok.J Tununek _'Netpluak Coastal hl to lie Fund T he�pNa a 1rntutulO Kipnu tek • K itkn®ar rah oak 11! Goodness Say Nem g platinum, Top;akawlnk ills stock Central Bering Sea anokatak ' Fishermen's Association clat,AticPk ant-)c*'�aia�. :creek Salmon Sam(Paul•' Qepk` . - i 'Saint George Pilot Point - { Port Heider. • Nelson Lagoon Aleutian Pribilof Island Community Development Association U False,Pass x - Jw in ' Bristol Bay Economic •" ; ! Development Corporation Source:NOAA Alaska Fisheries Science Center. Page 5 P21 The Magnuson-Stevens Fishery Conservation and Management Act(MSA)allocates a portion of the annual catch limit for each directed fishery of the Bering Sea and Aleutian Islands management area among six entities representing 65 western Alaska villages) The six entities(CDQ groups)and the villages associated with each of those entities are specifically named in in the MSA. The CDQ groups include the Aleutian Pribilof Island Community Development Association(APICDA),the Bristol Bay Economic Development Corporation(BBEDC),the Central Bering Sea Fishermen's Association(CBSFA),the Coastal Villages Region Fund(CVRF),the Norton Sound Economic Development Corporation(NSEDC),and the Yukon Delta Fisheries Development Association (YDFDA). The CDQ groups are nonprofit corporations whose board of directors and staff manage and administer CDQ allocations,investments,and economic development projects. CDQ groups use . the revenue derived from the harvest of their fisheries allocations to fund economic development activities and provide employment opportunities. The groundfish and halibut CDQ fisheries are managed by NMFS and the CDQ crab fisheries are managed by NMFS and the State of Alaska. Federal reporting requirements for management of CDQ fisheries are incorporated into standard reporting requirements for the groundfish,halibut,and crab fisheries. These include observer coverage requirements,equipment and operational requirements,permitting requirements,the use of observer data to manage allocations, and logbook and landings reports. The MSA addresses annual reporting requirements for the CDQ Program. Section 305(i)(1)(E) requires that each CDQ group submit an annual"Statement of Compliance"that summarizes the purposes for which it made investment during the preceding year.The CDQ groups submit statements of compliance each year,NMFS acknowledges receipt of those statements and posts them on the Alaska Region website at http://alaskafisheries.noaa.gov/cdq/msa.htm. This document serves to provide an overview of the CDQ Program for the interested public and for policymakers. Most of the information,data,and historical records are from the NMFS Alaska Region,which manages the CDQ Program. Data used are from the most recent sources. Since 2005 when the CDQ Annual Reports to NMFS was discontinued,NMFS has relied on information from the CDQ groups' publically available annual reports prepared primarily for residents of the member communities.These data are presented in various formats and species groupings;therefore, comparable data are not available across all CDQ groups or in all years. Section 305(i)(1)of the MSA Page 6 P2 2 CDQ Group Profiles The following section is an overview of each CDQ group, including any recent investments, successes,and leadership. Since the CDQ groups were formed in 1992,they have diversified their assets,set economic and educational priorities,and encountered challenges that were unique to their region. For more information on reporting requirements under the MSA, please see 2006 Magnuson- Stevens Act Reauthorization section. Table 1. Overview of CDQ Communities %Change Region Name of #of CDQ Population Population in Population CDQ Group Region of Alaska Communities in 1990 in 2016 Population in 2016 APICDA Aleutians East and 6 986 1,257 27% 8,514 Aleutians West Boroughs BBEDC Bristol Bay and 17 5,224 5,380 3% 7,457 Lake and Peninsula Boroughs,and Dillingham Census Area CBSFA Saint Paul Island 1 763 397 -48% 397 CVRF Kuskokwim River 20 6,484 9,429 45% 18,594 and Delta(Bethel Census Area plus Takotna, McGrath, and Nikolai) NSEDC Norton Sound 15 7,621 9,310 22% 9,483 (Nome Census Area,excluding Shishmaref) YDFDA Yukon River and 6 2,638 3,434 30% 13,200 Delta(Kusilvak and Yukon- Koyukuk Census Areas,excluding Takotna, McGrath, and Nikolai) Source:Alaska Department of Commerce,Community,and Economic Development Community Database. APICDA Aleutian Pribilof Island Community Development Association represents 6 communities: commuN,,,, Akutan,Atka, False Pass,Nelson Lagoon,Nikolski, St.George,and Unalaska. The region p N APIC A (�. APICDA encompasses is along the remote Aleutian Chain and St. George Island of the •- z Pribilof Islands. The total population represented by APICDA is 1,257,which represents 15% of the region's population. • 0 '3,` : APICDA's for-profit subsidiary is APICDA Joint Ventures,which manages the majority of their partnerships and assets.APICDA owns three processing companies,Atka Pride Seafoods,Bering Pacific Seafoods, and Cannon Fish Company. The pollock trawl catcher/processor Starbound was recently lengthened in 2016 to install a fish meal plant in its factory.The Starbound harvests and processes 80%of APICDA's CDQ quota. Royalties in 2016 were reported at$10.7 million. Luke Fanning is the CEO of APICDA. For more information on APICDA's operations,please follow this link to their 2016 Annual Report: https://indd.adobe.com/view/1968ca3c-78ea-407c-9393-d29462fff911 Page 7 P23 BBEDC ���,OPPpRT Bristol Bay Economic Development Corporation represents 17 communities in the Bristol `p L Vti Bay watershed: Aleknagik, Clark's Point,Dillingham, Egegik,Ekuk, Ekwok,King 044 `. .1,, Salmon,Levelock, Manokotak,Naknek, Pilot Point, Port Heiden,Portage Creek, South 4i Naknek,Togiak,Twin Hills,and Ugashik.The major hub is Dillingham. The total • '•: `Sq,• • population represented by BBEDC is 5,380,which represents 72%of the region's y Am••-40p IV population. PO y,4 rfE CNP.' The region is known for its sockeye salmon runs in its expansive watershed and BBEDC uses its royalties to provide several finance programs to their fishing fleet, including a vessel upgrade grant and refrigerated sea water(RSW)support. BBEDC had 20 fishermen participate in its small boat halibut fishery in 2016,harvesting 77,306 lbs. Bristol Bay Science and Research Institute is a non-profit research entity and subsidiary of BBEDC that conducts fisheries research and monitoring for the region. BBEDC engages in several partnerships to harvest and process its CDQ quota.The Defender,a 195' American Fisheries Act(AFA)vessel,was converted and upgraded in 2016 and began fishing in 2016.BBEDC owns 50%of Ocean Beauty Seafoods, one of the largest seafood buyers in Alaska. In 2016, BBEDC-contracted vessels harvested 87 million lbs. of CDQ allocations.They received $15.0 million in CDQ allocation royalties in 2016 and an additional $3.1 million in IFQ program royalties.Norm Van Vactor is the president/CEO. For more information on BBEDC's operations, please follow this link to their 2016 Annual Report:http://www.bbedc.com/wp- content/uploads/2017/09/BBEDC-AR-2016-WEB-9 28 17.pdf CBSFA Central Bering Sea Fishermen's Association represents the Pribilof Island community of St. Paul in the Bering Sea.The total population of 397 residents inhabit the island which is 43 square miles. _pm!IF 11101 aim CBSFA's primary fishing subsidiary is St.Paul Fishing Company(SPFC),with ownership interest in seven fishing vessels and quota in pollock, Pacific cod,halibut and A;111111111/ most crab species. In fact,CBSFA/SPFC receives 85%of the annual CDQ allocation -got 1s\., for Area 4C and it operates the fishery with Trident Seafoods,which has a crab processing plant in St. Paul. In 2016, SPFC entered into a new business venture with Unisea and the Mezich family and purchased a catcher/processor with pot gear endorsements in the Bering Sea. SPFC owns 50%of the permit and are currently considering building a new 124' vessel to process cod. It is estimated that their fishing and processing rights were worth$84.3 million in 2016. Phillip Lestenkof is the president of CBSFA. For more information on CBSFA's operations,please follow this link to their 2016 Annual Report: http://www.cbsfa.com/pdf/2016 report.pdf • Page 8 P2 4 CVRF • Coastal Villages Region Fund represents 20 communities: Chefornak,Chevak, Eek, eqhil Goodnews Bay,Hooper Bay, Kipnuk,Kongiganak,Kwigillingok, Mekoryuk,Napakiak, P�, ' V� Napaskiak,Newtok,Nightmute,Oscarville,Platinum,Quinhagak, Scammon Bay, '< <� Toksook Bay,Tuntutuliak,and Tununak. CVRF communities are in the Kuskokwim o' ��� qC River Delta and on Nelson Island. The total population represented by CVRF is 9,429 in Cr moi!` 2016,which represents 51%of the region's population. H Coastal Alaska Premier Seafods,owns 6 vessels and RK FISH �Q� harvestedrand processed The fr-pofit subsidiaryX126 million pounds of seafood in 2016. In a combined single platform since 2014,the fleet harvests pollock,crab,and cod with vessels that are wholly-owned by CVRF.CVRF was the first CDQ group to catch its pollock, crab, and cod CDQ allocation aboard vessels that they own and operate. In 2001,CVRF entered in to a partnership with NSEDC and Maruha Nichiro Corporation to form BSAI Partners to manage five in-shore pollock catcher vessels and their quota. In 2016, 126 million lbs of seafood were caught and/or processed by CVRF subsidiaries.Gross profit was reported at$52.2 million in 2016 and Bering Sea operations totaled $29.8 million. Morgen Crow is the Executive Director. For more information on CVRF's operations, please follow this link to their 2016 Annual Report: http://www.coastalvillages.org/sites/www.coastalvillages.org/files/documents/2016 annual report.p df NSEDC /\ The most northern CDQ group,Norton Sound Economic Development Corporation (NSEDC),represents 15 communities:Brevig Mission, Diomede,Elim,Gambell, Wirt Golovin,Koyuk,Nome,Savoonga, Shaktoolik, St. Michael, Stebbins,Teller,Unalakleet, Wales,and White Mountain.Communities in NSEDC stretch as far north as Diomede Island and as far south as Stebbins in the Norton Sound region. The major hub is Nome. The 2016 total population represented by NSEDC is 9,310,which represents 98%of the region's population. NSEDC receives 50%of the Norton Sound Red King Crab CDQ allocation,and opens the fishery to its residents.NSEDC provides a loan program to residents of Norton Sound.Norton Sound Seafood Products,a processing subsidiary with plants in Nome,Unalakleet,and Savoonga, purchases salmon,crab,halibut, and herring from the resident fleet. Crab and salmon were worth $5.7 million in 2016 for local residents.NSEDC created Siu Alaska Corporation in 2009 to manage its fishing-related ventures and fishing partnerships.NSEDC owns a 37.5%stake in BSAI Partners, a fishing company venture jointly owned with CVRF and Maruha.NSEDC owns outright or has a stake in 14 vessels, listed in Table 11. With the revenues received from their CDQ and IFQ royalties,NSEDC received$17.7 million in CDQ revenues in 2016 and an additional $6.9 million in IFQ fishing revenues.Janis Ivanoff is the president/CEO of NSEDC.For more information on NSEDC's operations, please follow this link to their 2016 Annual Report: http://www.nsedc.com/wp-content/uploads/2016-NSEDC-Annual- Report-Final-lr.pdf Page 9 P2_5 YDFDA Yukon Delta Fisheries Development Association represents six communities located along the Yukon River delta: Alakanuk, Emmonak,Grayling, Kotlik, Mountain Village,and Nunam Iqua. The total population represented by YDFDA is 3,434,which represents 26%of the qPM region's population. " ' Boats built by YDFDA's subsidiary,Yukon Marine Manufacturing,located in Emmonak,are �T sold to residents for fishing operations. Kwik'pak Fisheries,a seafood processing subsidiary YylcO1 V located on the Lower Yukon,is the single buyer of Yukon River salmon for resident ( l''be"f`' commercial fishermen and 2016 was the 14th year it was in operation. Kwik'pak produces .'"r,"' fresh fish fillets as well has frozen salmon products.490 fishermen delivered 8.3 million lbs. of salmon in 2016,in addition to purchasing lamprey and cisco from local fishermen. Yukon River Towing began operations in 2010 hauling gravel and rock through the region and has expanded to construction projects. In 2016,40 residents worked onboard their commercial fishing vessels accruing$525,568 in wages. YDFDA owns 6 vessels(see Table 11),including a stake in the mothership MN Golden Alaska. With the revenues received from their CDQ and IFQ royalties,YDFDA received$19.6 million in revenues in 2016 and an additional$17.7 million in fish sales. Ragnar Alstrom is the executive director of YDFDA.For more information on YDFDA's operations,please follow this link to their 2016 Annual Report:http://www.ydfda.org/assets/Uploads/documents/YDFDA-2016-Annual- Report.pdf History of the CDQ Program The communities in the CDQ program are predominantly Alaska Native villages that are remote, isolated settlements with strong ties to nearshore fishing and few natural assets with which to develop and sustain a diversified economic base. Basic community and social infrastructure is under-developed or lacking,and transportation and energy costs are high.The cash economy present in the region consists of seasonal fishing activity, local government,and healthcare. Historically,regional economic opportunities have been few and unemployment rates have been chronically high. While the CDQ communities border very productive fishing grounds,they were unable to exploit this proximity as the domestic BSAI groundfish fisheries developed between 1976 and 1990. The very high capital investment required to compete in these fisheries precluded small communities from participating in them. The inception of the CDQ Program sought to ameliorate some of these circumstances by extending an opportunity to qualifying communities to directly benefit from the productive harvest and use of these publicly owned resources.Through its allocation of valuable BSAI fishery resources,the CDQ Program provides a means for western Alaska communities to directly benefit from the productive harvest and use of these publicly owned resources. Advocates of the CDQ program came from local representatives that recognized the potential of inclusion and non-local politicians that used their influence in the decision making process to implement the CDQ program into regulations.The first proposal presented to the North Pacific Fishery Management Council(Council) in 1988 is from Paul Fuhs, former mayor of Unalaska and addressed concerns that the benefits of rapid development of the domestic groundfish fisheries off Alaska would not be realized in the small communities located adjacent to these fisheries,and that any opportunity to participate in these fisheries in the future would be foreclosed by the limited access programs that were under discussion at the time. The CDQ proposal requested direct Page 10 P2 6 allocations to western Alaska communities of 10%of the total allowable catch(TAC) for any Bering Sea groundfish included in a future limited access program. Walter J. Nickel was the State of Alaska governor in 1992 when the CDQ Program was put into motion. His administration,with support from the Alaska Department of Commerce and Economic Development and the Department of Fish and Game,recommended pollock allocations based on each CDQ group's proposals,public hearings,and consultations with the Council. The CDQ Program structure was initially developed as a component of the BSAI pollock allocations. In June 1989,the allocation of pollock in the BSAI management area between the inshore and offshore processing sectors began to emerge as a Council priority. Public comment and proposals to the Council included requests to analyze allocations of BSAI pollock to Western Alaska communities though a community development quota.The Council first implemented CDQ allocations to communities through the inshore/offshore allocations of pollock under Amendment 18 to the Fishery Management Plan for Groundfish of the BSAI management area.2 Meanwhile,the Council continued to further develop alternatives for management of the fixed gear halibut and sablefish fisheries.Allocations of halibut and fixed gear sablefish were made to the CDQ Program as part of the IFQ Program(58 FR 59375,November 9, 1993)in 1993. Magnuson Stevens Act Amendments to the MSA are intended to promote the ability of CDQ groups to responsibly manage their allocations similar to the quota share allocations provided by NMFS to other participants in the BSAI fisheries,while promoting the goals of the CDQ Program. 1996 Magnuson-Stevens Act Reauthorization In 1996,the CDQ Program was added to the MSA through the Sustainable Fisheries Act.3 Section 305(i)(1)of the MSA includes statutes authorizing the Western Alaska CDQ Program to receive allocations of each Bering Sea fishery. The MSA eligibility requirements for communities to participate in the CDQ Program include they: (1)must be located 50-miles from shore,(2)must be certified under the Alaska Native Claims Settlement Act,(3)must comply with State of Alaska criteria approved by Secretary of Commerce, and(4)must consist of residents who conduct more than one-half of their commercial or subsistence fishing in the BSAI.The Sustainable Fisheries Act also established a moratorium on any increases in CDQ allocations or new CDQ allocations through 2001. 2006 Magnuson-Stevens Act Reauthorization In 2006,Congress amended the CDQ Program,based on the recommendations of the Blue Ribbon Committee comprised of panel members appointed by the Governor of Alaska to review the CDQ Program.The report recommended changes that gave CDQ groups and their communities greater autonomy.These amendments were intended to address a variety of oversight and management issues associated with the CDQ Program, including conferring a higher level of self-governance to CDQ groups through the creation of a CDQ"administrative panel." On July 1,2006,the President signed the Coast Guard and Maritime Transportation Act of 2006 (the Coast Guard Act). Section 416(a)of the Coast Guard Act revised section 305(i)(1)of the MSA by replacing all of the existing language in this section with new language that included significant 2 The Council's final action on Amendment 18 occurred at its June 1991 meeting and the final rule implementing the inshore/offshore/CDQ pollock allocations was published on June 3, 1992(57 FR 23322). 3 Sustainable Fisheries Act P.L. 104-297 Page 11 P2 7 changes to the management and oversight of the CDQ Program. Subparagraph(A)revised the fundamental purposes of CDQ program as follows: A)IN GENERAL.—There is established the western Alaska community development quota program in order— to provide eligible western Alaska villages with the opportunity to participate and invest in fisheries in the Bering Sea and Aleutian Islands Management Area; to support economic development in western Alaska; to alleviate poverty and provide economic and social benefits for residents of western Alaska;and to achieve sustainable and diversified local economies in western Alaska. Moreover,the amendments mandate the continuation of allocations to the CDQ program at current levels and with no sunset date,except that,(A)multi-species groundfish CDQ will increase to 10.7%once/if quotas or sector allocations are implemented,and(B)the CDQ program will get 10.7%of any new directed fisheries established in the BSAI.Congress mandated a 10-year cycle for the allocations among the six CDQ groups,with the first review in 2012. The next decennial review is scheduled for 2022 from the State of Alaska. The Congress specifically listed all 65 eligible communities and all six CDQ groups that are currently eligible to participate in the program in the MSA reauthorization.The amendments require the following with respect to each CDQ group:(A)75%of the fishermen on CDQ boards,and at least one board member from each community; (B)each CDQ group must elect a representative to serve on the CDQ Panel;(C)up to 20%of CDQ group's investments can be non-fishery,with the other 80%either fishery-related;(D)each group must submit an annual written statement of compliance to the State of Alaska and Secretary about its investments;(E)each group must be in compliance with any requirements established by CDQ Panel. Annually until 2005,NMFS received detailed data for each CDQ group;however,these data are no longer available to NMFS because the CDQ groups are no longer required to submit reports to the State of Alaska or NMFS.The MSA does not authorize NMFS to require annual reports from the CDQ groups. Section 305(i)(1)(F)(ii)requires each CDQ group to"comply with State of Alaska law requiring annual reports to the entity's member villages summarizing financial operations for the previous calendar year,including general and administrative costs and compensation levels of the top 5 highest paid personnel." Although the State of Alaska does not have such a law,each of the CDQ groups have prepared publically available annual reports prepared primarily for residents of the member communities. These annual reports are available on the websites for the individual CDQ groups. Under the statute language in the 2006 MSA reauthorization,Federal government oversight of how the CDQ groups used the CDQ allocations to provide benefits to the eligible communities was suspended.NMFS suspended the enforcement of regulations that were no longer consistent with the revised section 305(i)(1)(I)of the MSA including regulations(1)that required the submission, review, and approval of proposed Community Development Plans;(2)regulations that required the submission and approval of an annual budget report; (3)regulations that required the submission of the annual budget reconciliation report;and(4)regulations that required the submission,review, and approval of substantial and technical amendments. WACDA The 2006 MSA reauthorization required the establishment of a CDQ Administrative Panel comprised of one member from each of the six CDQ groups to administer many aspects of the program.The Western Alaska Community Development Association(WACDA)was incorporated Page 12 P28 as a nonprofit corporation on September 6,2006 and its Board of Directors serves as the CDQ Administrative Panel. The MSA authorized the administrative panel to: • consist of 6 members with each CDQ group selecting one member of the panel; • action only by unanimous vote of all 6 members of the panel; • administer those aspects of the program not otherwise addressed in the MSA either through private contractual arrangement or through recommendations to the Council,the Secretary, or the State of Alaska,as the case may be;and • coordinate and facilitate activities of the entities under the program. Although there are limits to its authority established in other sections of the MSA,the WACDA Panel has largely replaced the Governor of Alaska and the Secretary of Commerce(NMFS)as the body responsible for managing the CDQ program. In 2017,the member board consists of the following: • Larry Cotter,APICDA • Simon Kinneen,NSEDC • Ragnar Alstrom,YDFDA • Phillip Lestenkof,CBSFA • Florence Kargi,CVRF • Robin Samuelsen, BBEDC The WACDA panel must unanimously pass motions required in their decision making. WACDA issued its last annual report in 2011,when WACDA could not come to a unanimous vote to renew the Annual Reports requirement. Without a unanimous vote between the six CDQ groups since 2011,the WACDA panel's administrative duties have been stalled and the panel has been inactive in CDQ program management. WACDA prepared annual reports on the CDQ Program from 2007 through 2011. These annual reports are available on WACDA's website(www.wacda.org). Page 13 P29 Allocations Under the CDQ Program,a portion of the federal TAC for commercially important BSAI species— including pollock,crab,halibut,and various groundfish in the Bering Sea—is allocated to participants in the CDQ Program. Figure 2 represents the total ex-vessel and first wholesale value of the CDQ allocation by species(average of 2012-2016). In the last five years,the CDQ groups collectively earned$322.4 million in ex-vessel and first wholesale value from their allocations(not accounting for royalty payments). Figure 2. CDQ Group Revenue by Species, Average 2012-2016 Crab/Other, $26 Sablefish/Halibut, $42.9 Rockfish/Atka Mackerel, $12.8 Flatfish, $21.3 IPPIIIIII""- Pollock, $199.3 01 1,4600. The initial CDQ proposal requested direct allocations to western Alaska communities of 10%of the TAC for any Bering Sea groundfish included in a future limited access program. In 1992, CDQ groups received their initial allocations of pollock based on population,quality of proposed economic development plans,and dependence on fisheries.Table 2 shows the 1992 initial pollock allocations to each of the communities,with CVFC receiving the greatest percentage(27%)and YDFDA receiving the least(5%). Table 2. Initial Pollock Allocations to CDQ Groups 1992 Initial Pollock Percent of CDQ Allocation Reserve APICDA 18,260 mt 18% BBEDC 20,289 mt 20% CBSFA 10,144 mt 10% CVFC 27,390 mt 27% NSFDA 20,289 mt 20% YDFDA 5,073 mt 5% Source:57 FR 23321. The CDQ Program's current groundfish fishery management objectives were developed,during a 1998 expansion of the CDQ Program,to strictly limit catch in the CDQ fishery to the CDQ reserve amounts allocated to the program. These objectives include not allowing catch under the program to accrue against non-CDQ portions of the TAC and prohibited species catch limits,managing target and non-target species allocations to the CDQ groups with the same level of strict quota Page 14 P30 accountability, and holding each CDQ group responsible to not exceed any of its groundfish CDQ allocations or its halibut prohibited species quota(PSQ)allocations. The CDQ Program was implemented by the Council and NMFS in 1992 with allocations of 7.5%of the pollock TAC.Allocations of halibut and sablefish were added to the program in 1995. In 1996, authorization for the CDQ Program was added to the Magnuson-Stevens Act by the U.S.Congress. In 1998,the Council expanded the CDQ Program by adding allocations of the remaining groundfish species,prohibited species,and crab.Allocations for these species are distributed throughout the BSAI management area. BSAI pollock allocations to the CDQ program were increased,as part of the 1998 American Fisheries Act. Section 206(a)of the AFA authorized the CDQ allocation of BSAI pollock be increased to 10%of the annual catch(up from 7.5%)with additional pollock to be provided to the CDQ program for pollock incidental catch in other CDQ groundfish fisheries. Since 1992,the CDQ Program has expanded several times and now includes allocations of pollock, halibut,sablefish,crab,all of the remaining groundfish species(cod,Atka mackerel, flatfish,and rockfish),and prohibited species catch(i.e.,as bycatch allowances for salmon, halibut, and crab). CDQ Program allocations vary by species. While originally set at 7.5%,Congress increased the pollock CDQ allocation to 10%in 1998 as part of the AFA.The percentage of other catch limits allocated to the CDQ Program(as CDQ reserves)is determined by:the BSAI Crab Rationalization Program(10%of crab species,except for Norton Sound red king crab,which is 7.5%;the BSAI Fishery Management Plan for all other groundfish and prohibited species(7.5%,except 20%for fixed gear sablefish);and, 50 CFR part 679 for halibut(20%to 100%,depending on IFQ management area). The percentage of each annual BSAI catch limit allocated to the CDQ Program varies by species and management area.Currently,the CDQ Program is allocated approximately 10.7%of the groundfish directed fisheries(See Table 3-Table 6). NMFS allocated pollock, other groundfish, crab,and prohibited species quota among the six CDQ groups based on recommendations made by the State of Alaska in 2006 and those percentage allocations have remained fixed.' Harvest specifications for the federal groundfish fisheries in the BSAI are set annually.These TAC specifications define upper catch limits for each subject calendar year. The setting of harvest specifications includes a review of the most recent BSAI Stock Assessment and Fishery Evaluation Reports(SAFE)report by the Council and its advising committees,as well as recommendations from the public. The process involves considerations of biological,economic,and social factors associated with the BSAI groundfish fisheries. For more information,please reference the NMFS SAFE Reports.Establishment of the annual groundfish CDQ reserves is an extension of the groundfish harvest specifications process. Once annual BSAI species categories and TAC amounts are established,an initial TAC amount of 85%of the aggregated BSAI TACs is calculated for all species,except pollock and fixed gear sablefish. The remaining 15%of annual TAC is equally split between the CDQ Program and a non- specified groundfish reserve.This is the basis for the annual 10.7%groundfish CDQ reserve,which is then apportioned back among the TAC categories in place for a given year, based on the °The 2006 revisions to the MSA fixed the percentage allocations for each fishery at the 2006 levels. Section 305(i)(1)(H) of the MSA requires a decennial review of the CDQ Program to determine if an adjustment of entity allocations is required. The MSA requires that during calendar year 2012 and every 10 years thereafter,the State of Alaska shall evaluate the performance of each entity participating in the CDQ Program.Under section 305(i)(1)(H),NMFS has no role in the evaluation and determination stages of the decennial review. NMFS would have a role in the allocation adjustment process if the State submitted to NMFS a recommendation for an allocation adjustment. Page 15 P31 proportion each TAC category contributes to the aggregate BSAI TAC limit.A parallel process is used to allocate 10.7%of most BSAI prohibited species catch limits to the CDQ Program as prohibited species quota(PSQ).Annual groundfish CDQ and PSQ reserves and allocations for 1998 to 2005 are available at the NMFS web site. Page 16 P3 2 I;:l 3. 2017 Croundfish Species CDQ and allocation percentages Groundfish Species 2017 TAC Program CDQ APICDA BBEDC CBSFA CVRF NSEDC YDFDA (mt) allocations Reserve(mt) BS Pollock 1,345,000 10.0% 134,500 14% 21% 5°A 24% 22% 14% Al Pollock 19,000 10.0% 1,900 14% 21% 5% 24% 22% 14% BS FG Sablefish 637 20.0% 127 15% 20% 16% 0% 18% 31% Al FG Sablefish 1,301 20.0% 260 14% 19% 3% 27% 23% 14% BS Sablefish 637 7.5% 48 21% 22% 9% 13% 13% 22% Al Sablefish 434 7.5% 33 26% 20% 8% 13% 12% 21% BS Pacific cod 223,704 10.7% 23,936 15% 21% 9% 18% 18% 19% Al Pacific cod 15,695 10.7% 1,679 15% 21% 9% 18% 18% 19% WAI Atka Mackerel 12,500 10.7% 1,338 30% 15% 8% 15% 14% 18% CAI Atka Mackerel 18,000 10.7% 1,926 30% 15% 8% 15% 14% 18% EAI/BS Atka Mackerel 34,500 10.7% 3,692 30% 15% 8% 15% 14% 18% Yellowfin Sole 154,000 10.7% 16,478 28% 24% 8% 6% 7% 27% Yellowfin Sole ABC reserves 106,800 10.7% 11,428 28% 24% 8% 6% 7% 27% Rock Sole 47,100 10.7% 5,040 24% 23% 8% 11% 11% 23% Rock Sole ABC reserves 108,000 10.7% 11,556 24% 23% 8% 11% 11% 23% BS Greenland Turbot 4,375 10.7% 468 16% 20% 8% 17% 19% 20% Arrowtooth Flounder 14,000 10.7% 1,498 22% 22% 9% 13% 12% 22% Flathead Sole 14,500 10.7% 1,552 20% 21% 9% 15% 15% 20% Flathead Sole ABC reserves 53,778 10.7% 5,754 20% 21% 9% 15% 15% 20% WAI Pacific Ocean Perch 9,000 10.7% 963 30% 15% 8% 15% 14% 18% CAI Pacific Ocean Perch 7,000 10.7% 749 30% 15% 8% 15% 14% 18% EAI Pacific Ocean Perch 7,900 10.7% 845 30% 15% 8% 15% 14% 18% Totals(in mt) 2,197,861 225,770 39,577 47,984 14,261 43,792 41,223 38,931 P33 • Table 4. 2017 Prohibited Species CDQ and allocation percentages Prohibited Species in 1 2017 TAC Program CDQ Groundfish Fisheries (numbers) allocations Reserve APICDA BBEDC CBSFA CVRF NSEDC YDFDA (numbers) Zone 1 Red King Crab 97,000 10.7% 10,379 24% 21% 8% 12% 12% 23% Zone 1 Bairdi Tanner Crab 830,000 10.7% 88,810 26% 24% 8% 8% 8% 26% Zone 2 Bairdi Tanner Crab 2,070,000 10.7% 221,490 24% 23% 8% 11% 10% 24% COBLZ Opilio Tanner Crab 9,105,477 10.7% 974,286 25% 24% 8% 10% 8% 25% Pacific Halibut 2,805 varies 315 22% 22% 9% 12% 12% 23% BS Chinook Salmon(A 42,000 9.3% 3,906 14% 21% 5% 24% 22% 14% Season) BS Chinook Salmon(B 18,000 5.5% 990 14% 21% 5% 24% 22% 14% Season) BS Chinook Salmon(Total) 60,000 8.2% 4,896 14% 21% 5% 24% 22% 14% Al Chinook Salmon 700 7.5% 53 14% 21% 5% 24% 22% 14% Non-Chinook Salmon 42,000 10.7% 4,494 14% 21% 5% 24% 22% 14% Table 5. 2(117('DQ halibut and allocation percentages 2017 TAC Program CDQ Reserve Halibut CDQ (pounds) allocations (pounds) APICDA BBEDC CBSFA CVRF NSEDC YDFDA Halibut 4B 1,140,000 20% 228,000 _ 100% 0% 0% 0% 0% 0% Halibut 4C 752,000 50% 376,000 15% 0% 85% 0% 0% 0% Halibut 4D 752,000 30% 225,600 0% 26% 0% 24% 30% 20% Halibut 4E 196,000 100% 196,000 0% 30% 0% 70% 0% 0% Total(pounds) 2,840,000 1,025,600 284,400 117,456 319,600 191,344 67,680 45,120 I ahlc b. 2017 Grab CDQ and allocation percentages 2017 TAC Program CDQ Reserve Crab (pounds) allocations (pounds) APICDA BBEDC CBSFA CVRF NSEDC YDFDA Norton Sound Red King 496,800 7.5% 37,260 0% 0% 0% 0% 50% 50% Crab Totals(pounds) 18,630 18,630 Source:https:"alaskafisheries.noaa.gov/sites/defauldfiles/reports/annualmatrir20I7 pdf Page 18 N3 4 Small Boat Halibut Fishery Each CDQ group was allocated a portion of the halibut catch limit and from that allocation,a small boat halibut fishery operates nearshore.This was intended to provide economic opportunity to local fishermen in CDQ communities. Of the total 2017 TAC for Areas 4BCDE, CDQ groups were allocated 36.1%(see Figure 3). Depending on the catch limits and their allocations,CDQ groups can opt to open it to local fishermen or lease it to fishing companies if it is not large enough for a directed fishery. Figure 3. IFQ and CDQ Halibut Fishery Allocations by Area VIROMIPPIP YDFD , 0% NSEDC,30%- APICDA, 100% CBSFA,85% CVRF,24% CVRF,70% BBEDC,26% APICDA, 15% IFQ,80% IFQ,70% ° IQ,50% BBEDC,30% MM. MORMINI— Area 4B Area 4C Area 4D Area 4E IFQ APICDA BBEDC •CBSFA •CVRF •NSEDC •YDFDA Source:NMFS SFD P3 5 Table 7. Annual halibut CDQ allocation by regulatory area, (2010-2017) Area Year TAC Program APICDA BBEDC CBSFA CVRF NSEDC YDFDA Allocations 2010 2,160,000 432,000 0 0 0 0 0 2011 2,180,000 436,000 0 0 0 0 0 2012 1,869,000 373,800 0 0 0 0 0 4B 2013 1,450,000 20% 290,000 0 0 0 0 0 2014 1,140,000 228,000 0 0 0 0 0 2015 1,140,000 228,000 0 0 0 0 0 2016 1,140,000 228,000 0 0 0 0 0 2017 1,140,000 228,000 0 0 0 0 0 2010 1,625,000 121,875 0 690,625 0 0 0 2011 1,690,000 126,750 0 718,250 0 0 0 2012 1,107,356 83,052 0 470,626 0 0 0 4C 2013 859,000 50% 64,425 0 365,075 0 0 0 2014 596,600 44,745 0 253,555 0 0 0 2015 596,600 44,745 0 253,555 0 0 0 2016 733,600 55,020 0 311,780 0 0 0 2017 752,000 56,400 0 319,600 0 0 0 2010 1,625,000 0 126,750 0 117,000 146,250 97,500 2011 1,690,000 0 131,820 0 121,680 152,100 101,400 2012 1,107,356 0 86,374 0 79,730 99,662 66,441 4D 2013 859,000 30% 0 67,002 0 61,848 77,310 51,540 2014 596,600 0 46,535 0 42,955 53,694 35,796 2015 596,600 0 46,535 0 42,955 53,694 35,796 2016 733,600 0 57,221 0 52,819 66,024 44,016 2017 752,000 0 58,656 0 54,144 67,680 45,120 2010 330,000 0 99,000 0 231,000 0 0 2011 340,000 0 102,000 0 238,000 0 0 2012 250,290 0 75,087 0 175,203 0 0 4E 2013 212,000 100% 0 63,600 0 148,400 0 0 2014 91,800 0 27,540 0 64,260 0 0 2015 91,800 0 27,540 0 64,260 0 0 2016 192,800 0 57,840 0 134,960 0 0 2017 196,000 0 58,800 0 137,200 0 0 2010 3,580,000 121,875 225,750 690,625 348,000 146,250 97,500 2011 3,720,000 126,750 233,820 718,250 359,680 152,100 101,400 2012 2,465,002 83,052 161,461 470,626 254,933 99,662 66,441 4CDE 2013 1,930,000 64,425 130,602 365,075 210,248 77,310 51,540 2014 1,285,000 44,745 74,075 253,555 107,215 53,694 35,796 2015 1,285,000 44,745 74,075 253,555 107,215 53,694 35,796 2016 1,660,000 55,020 115,061 311,780 187,779 66,024 44,016 2017 1,700,000 56,400 117,456 319,600 191,344 67,680 45,120 Note:All units in headed and gutted pounds. Source:CDQ program quota categories,target and non-target CDQ reserves,allocation percentages,and group quotas (2010 through 2017):https://alaskafisheries.noaa.gov/sites/default/files/reports/annualmatrix2016.pdf Page 20 P36 CDQ Cost Recovery On January 5,2016,NMFS published a final rule to implement cost recovery for the CDQ program (81 FR 150).The CDQ Program allocates a portion of the TACs of BSAI groundfish species and halibut to CDQ groups.The CDQ groups are responsible for paying the fee for fish landed under the CDQ Program, due on December 31 of the year in which the landings were made.Cost recovery requirements for the CDQ groups are at 50 CFR 679.33. The total dollar amount of the fee due is determined by multiplying the NMFS published fee percentage by the ex-vessel value of all landings under the program made during the fishing year. Direct program costs are calculated by determining the incremental management costs of the CDQ Program,that is,costs that would not have been incurred but for the CDQ Program.These costs cover the management,data collection,and enforcement of the CDQ Program by NMFS and ADF&G.The NFMS management units that incur direct program costs are:the Sustainable Fisheries Division(SFD),Office of Law Enforcement(OLE),the Restricted Access Management Division(RAM),the Operations and Management Division(OMD),and the Information Systems Division(ISD). In 2017,the direct program cost for the CDQ Program was$447,580,which was 0.55%of the total fishery. Table 8. 2017 Costs Recovery Fees OMD RAM SFD ISD OLE AFSC ADFG Personnel $2,500 $6,800 $32,000 $27,900 $180,284 $35,713 $56,577 Costs Personnel $800 $3,000 $10,700 $10,500 - - - Benefits Travel $200 - $3,700 - - $76 $1,232 Transportation - - - - - - - Printing - - - - - - $150 Contracts/ _ _ Training - $884 Supplies - - - $1,600 - - - Equipment - - $200 - - - - Rent/Utilities $600 $1,524 $5,508 $5,108 $48,292 - - Other - - - - - $11,732 - Total $4,100 $11,324 $52,108 $45,108 $228,576 $47,521 $58,843 Source:haps://alaskafisheries.noaa.gov/sites/default/files/cdq_cost_recovery_fee_report_2017.pdf Page 21 P37 Royalties and Revenue Annual CDQ allocations provide a revenue stream for CDQ groups through various channels, including the direct catch and sale of some species and the leasing of quota to various harvesting partners. CDQ groups receive royalty payments on each allocation harvested by a partnering firm. Since the CDQ Program was implemented, individual groups have used royalty revenue to support the goals of the CDQ Program. Royalty revenues support CDQ projects,which encourage sustainable fishery-based economic development in the region or promote the social development of a community or group of communities that are participating in a CDQ Program(e.g., infrastructure development,employment,and training programs). Annually until 2005,NMFS received information about royalties paid,by species or species group, for the CDQ allocations. Detailed royalty data for each CDQ group are no longer available to NMFS because the CDQ groups are no longer required to submit to the State or NMFS the reports through which the royalty data previously was collected. Therefore, information about total annual royalties by species for each CDQ group has not been publically available. Since 2005,NMFS has relied on information from the CDQ groups' publically available annual reports prepared primarily for residents of the member communities. Some CDQ groups have chosen to present royalty information by species or royalty type. These data are presented in various formats and species groupings;therefore,comparable royalty data are not available across all CDQ groups or in all years. Since CDQ groups are no longer required to report their annual royalties,NMFS does not have information on royalty revenues. Instead,Table 9 shows the ex-vessel and first wholesale volume and value for the last ten years(2007-2016)for the CDQ groups combined. In 2016,the CDQ groups harvested 249,538 mt of seafood worth$120 million. In the same year,the CDQ groups processed 196,037 mt in first wholesale volume worth$213.9 million. Table 9. Ex-Vessel and First Wholesale Volume and Value for CDQ Groups, (2007- 2016) Year Ex-Vessel Volume Ex-Vessel Value Wholesale Volume Wholesale Value (MT) ($Millions) (MT) ($Millions) 2007 95,031 $39.6 174,387 $182.8 2008 63,613 $49.1 139,361 $198.7 2009 117,975 $50.8 115,453 $142.3 2010 136,562 $72.2 116,867 $155.8 2011 216,434 $95.1 171,784 $215.1 2012 221,208 $111.8 178,753 $221.6 2013 217,253 $106.0 184,929 $189.5 2014 235,243 $92.2 185,729 $199.9 2015 249,853 $125.0 190,848 $203.7 2016 249,538 $120.0 196,037 $213.9 Note:Values are nominal. Source:AKFIN. Page 22 P3 8 Revenue from Investments Although all participants in the CDQ Program are non-profit corporations, earnings are derived from investments distributions in subsidiary companies and vessels. Since the implementation of the CDQ Program, individual groups have made large capital investments in vessels, infrastructure, processing capacity,and specialized gear. Local programs purchase limited access privileges in a fishery and acquire equity position in existing fishery businesses including halibut, sablefish,and crab. Revenue from such investments has exceeded royalty income since 2004,with direct income accounting for a greater portion of the total revenue in most years,ranging from 55 to 84% annually. CDQ groups have invested in peripheral projects that directly or indirectly support commercial fishing for halibut, salmon,and other nearshore species.These projects include seafood branding and marketing,quality control training,safety and survival training,construction and staffing of equipment maintenance and repair facilities, and assistance with bulk fuel procurement and distribution. In 2011,the six CDQ groups held approximately$938 million in assets and they invested more than$176 million in CDQ communities and in fisheries activities,down from a peak of$251 million in 2010(WACDA 2011 &2012).After 2011,there is not a centralized report that summarized CDQ assets. Table 10 shows the diversification in the CDQ group subsidiary companies. Table 10. Wholly-owned and partially-owned subsidiaries of CDQ groups CDQ Group Name of Company Type of Company APICDA APICDA Joint Ventures Primary subsidiary APICDA APICDA Vessels, Inc. Tourism operations APICDA Atka Pride Seafoods, Inc. Processing company APICDA FN Barbara J, LLC Fishing vessel APICDA Bering Pacific Seafoods, LLC Processing company APICDA False Pass Fuel Company Fuel APICDA FN Exceller Fishing vessel APICDA FN Farwest Leader, LLC Fishing vessel APICDA FN Golden Dawn, LLC Fishing vessel APICDA Alaska Longline, LLC Fishing company APICDA Starbound, LLC Fishing company APICDA Cannon Fish Company Processing company BBEDC Alaskan Mariner, LLC Fishing vessel BBEDC Aleutian Mariner, LLC Fishing vessel BBEDC Arctic Mariner, LLC Fishing vessel BBEDC Bristol Mariner, LLC Fishing vessel BBEDC Cascade Mariner, LLC Fishing vessel BBEDC Nordic Mariner, LLC Fishing vessel BBEDC Northern Mariner, LLC Fishing vessel BBEDC Pacific Mariner, LLC Fishing vessel BBEDC Western Mariner, LLC Fishing vessel BBEDC Dona Martita, LLC Fishing company BBEDC Arctic Fjord, Inc. Fishing vessel Page 23 P3 9 CDQ Group Name of Company Type of Company BBEDC Neahkahnie, LLC Fishing vessel BBEDC Alaskan Leader Fisheries, LLC Fishing company BBEDC Alaskan Leader Seafoods, LLC Fishing company BBEDC Alaskan Leader Vessel, LLC. Fishing vessel BBEDC Aleutian Leader Fisheries, LLC Fishing company BBEDC A-Tech Services Metal fabrication BBEDC Bering Leader Fisheries, LLC Fishing vessel BBEDC Bristol Leader Fisheries, LLC Fishing vessel BBEDC Kodiak Leader Fisheries, LLC Fishing company BBEDC Northern Leader, LLC Fishing vessel BBEDC Ocean Beauty Seafoods, LLC Processing company BBEDC Washington Landmark Holdings(Martinac Shipyard Shipyard) BBEDC Ocean Beauty Seafoods Fishmeal/Kodiak Fishmeal processing Fishmeal Co CBSFA 57 Degrees North, LLC Processing company CBSFA 170 Degrees West, LLC Processing company CBSFA Village Cove Seafoods, LLC Fishing company CBSFA Central Bering Sea Holdings, LLC Fishing company CBSFA St. Paul Fishing Company, LLC Fishing company CBSFA Star Partners, LLC Fishing company CBSFA Central Bering Sea Fishermen's Corporation Fishing company CBSFA Central Bering Sea Vessels, LLC Fishing company CBSFA Bering Sea Partners, Inc. Fishing company CBSFA Royal Aleutian Seafoods, Inc. Processing company CBSFA Saint Boats, LLC. Fishing company CBSFA Adventure, LLC Fishing vessel CBSFA American Seafoods Fishing company CBSFA Misty Islands Seafoods, LLC Processing company CVRF Coastal Alaska Premier Seafoods Fishing company CVRF Coastal Villages Pollock, LLC Fishing company CVRF Coastal Villages Crab, LLC Fishing company CVRF BSAI Partners, LLC Fishing company CVRF Coastal Villages Holdings LLC Fishing company CVRF Coastal Villages Enterprises Inc. Subsidiary NSEDC BSAI Partners, LLC Fishing company NSEDC Norton Sound Seafood Partners Processing company NSEDC Glacier Fish Company Fishing company NSEDC Arctic Packer, LLC Processing company NSEDC Siku Holdings, LLC Fishing company NSEDC Iquique US Fishing company NSEDC Siu Alaska Corporation Fishing company Page 24 P4 0 CDQ Group Name of Company Type of Company NSEDC Bering Select Fishmeal company NSEDC KDS, Inc. Subsidiary YDFDA Kwik'Pak Fisheries LLC Processing company YDFDA Yukon Delta Fisheries Inc Fishing company YDFDA Akulurak LLC Fishing vessel YDFDA Romanzof Fishing Company LLC Fishing vessel YDFDA Golden Alaska Mothership YDFDA Ocean Leader Fishing vessel YDFDA American Beauty Fishing vessel Source:NMFS 2015a and CDQ group annual reports. Page 25 P4 I Vessel Ownership and Subsidiary Investments The accumulation of capital assets,such as commercial fishing vessels, is one way CDQ groups attempt to meet the economic and social goals of the CDQ Program. Investments by individual CDQ groups include ownership interest in the at-sea processing sector and in catcher vessels and are made with the expectation of financial gain or expanding equity in the fishing fleet. Investments in subsidiaries,such as limited liability corporations,allow CDQ groups to wholly or partially own vessels directly related to fisheries. These vessels provide revenue through the direct catch and sale of target species and, in some cases,vessel ownership increases a subsidiary's holdings of quota in fisheries,such as BS pollock. In addition, investments in harvesting and processing capacity provide revenue through profit sharing,contractual agreements to harvest other CDQ groups' quota,and chartering commercial fishing vessels to government agencies conducting stock assessment surveys. Vessel ownership varies by CDQ group,target species, and affiliation with subsidiary corporations (Table 11). Approximately 20%of vessels over 60 feet active in BSAI or GOA fisheries are owned in full or in part by one of the CDQ groups. About half of the freezer longline fleet has some level of CDQ ownership and two of the three recent builds in this fleet have CDQ ownership(McDowell Group, 2016). In the last few years,many CDQ groups have continued to invest in new vessels or upgrade operating vessels. In 2016,CVRF replaced Deep Pacific with Flicka,a 140' longline vessel built in 1998 to harvest their allocations of cod.NSEDC has an ownership stake in Iquique via an investment by the Glacier Fish Company,which finished construction on a new 261 ft. vessel in 2018 named the North Star to add to their existing Amendment 80 fleet. Table 11. Direct investments in fisheries companies and vessels, by CDQ group as of 2018 CDQ Group Name of Company CDQ MLOA Vessel Name Vessel Target Ownership Type species APICDA APICDA Vessels 100.0% 35 AleutianlPribilof CV Various APICDA APICDA Vessels 100.0% 35 Aleutian Pribilof CV Various APICDA APICDA Vessels 100.0% 55 Taty Z CV Various APICDA APICDA Vessels 100.0% 53 Atka Pride CV Various APICDA APICDA Vessels 100.0% 58 Exceller CV Various APICDA APICDA Vessels 100.0% 58 Konrad I CV Various APICDA APICDA Vessels 100.0% 46 Nightrider CV Various APICDA APICDA Vessels 100.0% 32 Pogo CV Various APICDA APICDA Vessels 100.0% 42 Nikka D CV Various APICDA Barbara J 50.0% 109 Barbara J CV Crab,cod APICDA Farwest Leader 50.0% 105 Farwest Leader CV Crab,cod APICDA Golden Dawn 50.0% 148 Golden Dawn CV Pollock,crab, cod APICDA Alaska Longline 25.0% 114 Prowler CP Cod, sablefish APICDA Alaska Longline 25.0% 115 Kjevolja CP Cod, sablefish APICDA Alaska Longline 25.0% 124 Bering Prowler FLL Cod, sablefish Page 26 P4 2 Vesse Taret CDQ Group Name of Company Ownership MLOA Vessel Name Type I species Cod, APICDA Alaska Longline 25.0% 155 Ocean Prowler FLL sablefish APICDA Alaska Longline 25.0% 135 Arctic Prowler FLL Cod, sablefish APICDA Alaska Longline 25.0% 98 Gulf Prowler FLL Cod, sablefish APICDA Alaska Longline 25.0% 124 Zenith FLL Cod, sablefish APICDA Starbound 20.0% 240 Starbound CP Pollock BBEDC Dona Martita 50.0% 165 Western CV Pollock Venture BBEDC Dona Martita 50.0% 172 Alaskan CV Pollock Defender BBEDC Dona Martita 50.0% 195 Defender CV Pollock BBEDC Dona Martita 50.0% 174 Bering CV Pollock Defender BBEDC Dona Martita 50.0% 148 Morning Star CV Pollock BBEDC Arctic Fjord 30.0% 275 Arctic Fjord CP Pollock BBEDC Neahkahnie 30.0% 110 Neahkahnie CV Pollock BBEDC Aleutian Mariner 40.0% 118 Aleutian CV Crab, cod Mariner BBEDC Arctic Mariner 50.0% 125 Arctic Mariner CV Crab, cod BBEDC Bristol Mariner 45.0% 125 Bristol Mariner CV Crab,cod BBEDC Nordic Mariner 45.0% 121 Nordic Mariner CV Crab, cod BBEDC Pacific Mariner 40.0% 125 Pacific Mariner CV Crab, cod BBEDC Western Mariner 50.0% 108 Western CV Crab, Mariner sablefish BBEDC Cascade Mariner 50.0% 101 Cascade CV Crab, Mariner sablefish Alaskan Leader Halibut, BBEDC Vessel 50.0% 150 Alaskan Leader CP sablefish, cod Bering Leader o Halibut, BBEDC Fisheries 50.0/0 124 Bering Leader CP sablefish, cod Bristol Leader Halibut, BBEDC Fisheries 50.0% 167 Bristol Leader CP sablefish, cod Northern Halibut, BBEDC Northern Leader 50.0% 183 Leader CP sablefish, cod St. Paul Fishing o Halibut, CBSFA Company 100.0% 58 St. Paul CV sablefish, cod St. Paul Fishing o Halibut, CBSFA Company 100.0% 58 St. Peter CV sablefish, cod Page 27 P43 CDQ Group Name of Company CDQ MLOA Vessel Name Vessel Target Ownership Type species CBSFA St. Paul Fishing 75.0% 123 Starlite CV Pollock Company CBSFA St. Paul Fishing 75.0% 123 Starward CV Pollock Company CBSFA St. Paul Fishing 50.0% 108 Early Dawn CV Crab Company CBSFA St. Paul Fishing 30.0% 166 Fierce CV Pollock. crab, Company Allegiance cod CBSFA American Seafoods 9.9% 272 American CP Pollock, Dynasty flatfish CBSFA American Seafoods 9.9% 285 American CP Pollock, Triumph flatfish CBSFA American Seafoods 9.9% 341 Northern Eagle CP Pollock, flatfish CBSFA American Seafoods 9.9% 336 Northern CP Pollock, Jaeger flatfish CBSFA American Seafoods 9.9% 256 Ocean Rover CP Pollock, flatfish CBSFA American Seafoods 9.9% 295 Katie Ann CP Pollock, cod, flatfish CBSFA St. Paul Fishing 100.0% 81 Adventure CV Crab Company CVRF Coastal Alaska 100.0% 341 Northern Hawk CP Pollock, Premier Seafoods flatfish CVRF Coastal Alaska 100.0% 140 Flicka CP Cod Premier Seafoods CVRF Coastal Alaska 100.0% 141 Lilli Ann CP Cod Premier Seafoods CVRF Coastal Alaska 100.0% 125 North Cape CP Cod Premier Seafoods CVRF Coastal Alaska 100.0% 135 Arctic Sea CV Crab Premier Seafoods CVRF Coastal Alaska 100.0% 110 Bering Sea CV Crab Premier Seafoods CVRF Coastal Alaska 100.0% 126 North Sea CV Crab Premier Seafoods CVRF/ NSEDC BSAI Partners 37.5% 124 Alaska Rose CV Pollock CVRF/ NSEDC BSAI Partners 37.5% 124 Bering Rose CV Pollock CVRF/ NSEDC BSAI Partners 37.5% 180 Destination CV Pollock CVRF/ NSEDC BSAI Partners 37.5% 124 Great Pacific CV Pollock CVRF/ NSEDC BSAI Partners 37.5% 142 Sea Wolf CV Pollock NSEDC Aleutian No. 1 50.0% 105 Aleutian No. 1 CV Crab Page 28 P4 4 CDQ Vessel I Target CDQ Group Name of Company MLOA Vessel Name Ownership Type species NSEDC Glacier Bay 100.0% 154 Glacier Bay CP Cod Fisheries NSEDC Siu Corporation 100.0% 130 Patricia Lee CV Crab NSEDC Glacier Fish 37.5% 376 Alaska Ocean CP Pollock Company NSEDC Glacier Fish 37.5% 276 Pacific Glacier CP Pollock Company Glacier Fish Northern NSEDC Company 37.5% 201 Glacier CP Flatfish YDFDA Akukurak Fisheries 85.0% 180 Courageous CP Crab, cod, sablefish YDFDA Alakanuk Beauty 75.0% 123 American CV Pollock Beauty YDFDA Emmonak Leader 75.0% 120 Ocean Leader CV Pollock YDFDA Kiska Sea Northern 45.0% 125 Kiska Sea CV Crab Crab,YDFDA Romanzof Fisheries 41.0% 182 Baranof CP sablefish YDFDA Golden Alaska 26.3% 305 Golden Alaska MS Pollock Note:MS=Mothership,CP=Catcher/Processor,CV=Catcher Vessel. Source:NPFMC and NMFS 2016b with updates from CDQ group annual reports for 2016. Page 29 IN Economic Development and Public Welfare CDQ groups expend revenue on projects that fulfill the statutory mandate of the program to provide eligible villages with an opportunity to participate and invest in Bering Sea fisheries, support economic development in the region,alleviate poverty,provide economic and social benefits to western Alaska residents,and achieve sustainable and diversified local economies intended to support economic development and improve public welfare within the communities in their region. CDQ groups have invested in inshore processing plants for halibut,salmon,Pacific cod, and other species. In addition,each CDQ group funds region-specific projects including infrastructure, local fishery development and management,training and scholarship programs,grant programs,and social services. In most cases,these projects are completely funded with earnings from investments in the BSAI fisheries. Each CDQ group is a non-profit corporation that receives revenue from its for-profit subsidiaries. For example,APICDA owns processing plants in False Pass and Atka,BBEDC holds 50% ownership in Ocean Beauty Seafoods,CVRF owns Coastal Villages Seafoods' salmon and halibut processing plants,NSEDC's Norton Sound Seafood Products operates processing plants and purchasing stations throughout the region,and YDFDA owns Kwik'pak Fisheries and has provided funding for the Emmonak Tribal Council's fish processing plant.Capital investments in processing equipment have allowed plants to produce processed seafood products for sale in global seafood markets. Section 305(i)(1)(E)(iii)of the Magnuson-Stevens Act states that CDQ groups may make up to 20%of their annual investments in non-fishery related projects within the region. Individual CDQ groups invest in community capital projects such as village infrastructure projects,medical clinics, and environmental programs and projects. Regional investments by CDQ groups have expanded the state and local tax base. CDQ groups have invested in financial services that support small-scale operations targeting salmon,herring,halibut,or other species typically found in the near shore. CDQ revenue supports permit brokerages and revolving loan programs that build and sustain fisheries development within their regions. Such programs are intended to retain limited entry salmon permits within CDQ communities,providing the financing necessary for resident fishermen to purchase new boats and gear, and supporting market development for locally-harvested seafood products. Page 30 P4 6 Benefits of the CDQ Program to Member Communities Earnings from royalties and investments enable the CDQ projects to distribute benefits directly to western Alaska communities.One of the most tangible direct benefits of the CDQ Program has been employment opportunities for western Alaska village residents. CDQ groups have created career track employment for many residents of qualifying communities and have opened opportunities for non-CDQ Alaskan residents,as well.Jobs generated by the CDQ groups include work on a wide range of fishing vessels, internships with the business partners or government agencies, employment at processing plants,and administrative positions. Many of the jobs generated by the CDQ Program are associated with shoreside fisheries development projects in CDQ communities.These projects consist of a wide range of ventures, including those directly related to commercial fishing. Examples include building or improving seafood processing facilities,purchasing ice machines,purchasing and building fishing vessels,gear improvements,and construction of fish handling infrastructure. Another way CDQ groups benefit the region is through expenditures that support targeted vocational training and provide post-secondary educational scholarship opportunities to residents. Each CDQ group provides training and scholarship opportunities for eligible community members. CDQ and non-CDQ villages benefit from a trained workforce well-suited for sustaining local employment in a fisheries-based economy. While the CDQ Program is intended to support economic and social development activities in eligible communities,many non-CDQ communities in western Alaska benefit from the economic development projects. Fishermen and community members from non-CDQ villages utilize the infrastructure,including maintenance and repair facilities,and training available as a result of CDQ revenues. In addition, non-member fishermen contribute catch to CDQ processing plants and residents of non-member communities gain employment in CDQ-related projects. Several CDQ groups support salmon assessment and enhancement projects intended to benefit salmon runs throughout western Alaska.Although CDQ communities derive revenue from pollock and other BSAI fisheries,salmon fishing is a key component of fishing activities for many of the CDQ stakeholders and residents of western Alaska. Many communities depend on sustainable salmon runs for subsistence,commercial, cultural,and spiritual practices. Data summarizing these efforts were last reported in 2011 by WACDA. Since 2011,each CDQ group provides highlights of the work completed in its member communities but the information varies by CDQ group. Page 31 P4 7 References APICDA. (2016).Annual Report. Retrieved from https://indd.adobe.com/view/1968ca3c-78ea- 407c-9393-d29462fff9 11 BBEDC. (2016).Annual Report. Retrieved from http://www.bbedc.com/wp- content/uploads/2017/09/BBEDC-AR-2016-WEB-9_28_17.pdf Blue Ribbon Committee Members. (2005). Blue Ribbon Committee on the Western Alaska CDQ Program:Report to the Governor State of Alaska. Retrieved from http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.164.5902&rep=rep I&type=pdf CBSFA. (2016).Annual Report. Retrieved from https://www.cbsfa.com/pd02016_report.pdf CVRF.(2016).Annual Report. Retrieved from http://www.coastalvillages.org/sites/www.coastalvi llages.org/files/documents/2016_annual _report.pdf (2007).Magnuson-Stevens Fishery Conservation and Management Act. Retrieved from https://www.fisheries.noaa.gov/resource/document/magnuson-stevens-fishery-conservation- and-management-act McDowell Group.(2016).Modernization of the North Pacific Fishing Fleet: Economic Opportunity Analysis. Retrieved from http://www.edc-seaking.org/uploads/pdf/fleet-modernization- final-11_l l.pdf Northern Economics.(2002).An Assessment of the Socioeconomic Impacts of the Western Alaska Community Development Program. Alaska Department of Community and Economic Development. Anchorage,AK. Retrieved from http://citeseerx.ist.psu.edu/viewdoc/download;j sessionid=075936BC78ECAC26I A702655 CFA65A84?doi=10.1.1.170.1057&rep=rep 1&type=pdf NSEDC. (2016).Annual Report. Retrieved from http://www.nsedc.com/wp-content/uploads/2016- NSEDC-Annual-Report-Final-lr.pdf YDFDA.(2016).Annual Report. Retrieved from http://www.ydfda.org/assets/Uploads/documents/YDFDA-2016-Annual-Report.pdf Page 32 P4 8 EiiOF6_0,N �u p, r < a * 4 '? Q l -4,;,...,, ��• a 4,Q STAt£s-,0 ,---- U.S.Secretary of Commerce Wilbur Ross Assistant Secretary of Commerce for Oceans and Atmosphere and Acting Under Secretary of Commerce for Oceans and Atmosphere RDML Tim Gallaudet,USN Ret. Assistant Administrator for Fisheries Chris Oliver October 2018 www.alaskafisheries.noaa.gov OFFICIAL BUSINESS National Marine Fisheries Service NMFS Alaska Region Sustainable Fisheries Division Juneau,AK 99801 I' • ' Memorandum ,4 Date: December 17, 2018 4tAsKP,� To: Port and Commerce Advisory Board From: Jackie Wilde, Community Development Plan r i Subject: Joint Work session BACKGROUND&JUSTIFICATION: The Planning and Zoning Commission has scheduled a Joint Work Session with the Port and Commerce Advisory Board on January 22, 2019 at 6:00 PM to discuss "Title 15: Development Requirements and Land Uses" Community Development Staff is requesting the PACAB Chair poll the Board for availability on January 22,2019 if possible. 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