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HomeMy WebLinkAbout04272026 City Council Laydown - JaffaBruce Jaffa PO Box 107 Moose Pass, Alaska 99631 907-288-3175 Bruce@JaffaConstruction.com Bruce Jaffa Outside the City. This is likely my last opportunity to brief Council on the activities of our Board. Most people identify Seward as a Commercial Fishing Town in a State that counts fisheries as a major revenue stream. PACAB recently invited speakers to discuss commercial fishing and understand if and why Seward is losing business to other ports. Participants say Sewards role has been in decline in recent years. Abby Fredrick of Silver Bay Seafoods spoke of the effort to revitalize the former Seward Fish after years of neglect and reduced activity. She was optimistic about the efforts to improve capacity which in turn should attract interest by the harvest fleet. The facility has significant value and as it occupies prime docking space is critical to the success of the harbor. Eddie Wilbur of Copper River Seafoods wrote of challenges, including, filling needs from the few local maintenance and supply business. Even the simple access to unloading docks or buying of required ice is problematic. We heard about how long -discussed projects such as accessible commercial docks, with cranes for loading, unloading and maintenance. These have been studied, approved and placed in the legislative priority list but never built. A drive down dock, found at other ports, is recognized as vital to an active commercial harbor. Moorage at dock spaces by inactive & dormant boats reduces active use and availability, thus forcing boats to other harbors. We were informed that the Harbor Master is aware of some of the issue and will work to improve management. What PACAB learned is these problems are not strictly related to climate change or high seas trawl. Harvest deliveries are being made to other ports due to available facilities and management. A corrective strategy is within the control of this City Council. This is not new information but, the Council and the Administration have been remiss in addressing this while seemingly, focusing on issues related to tourism. I know the current and past harbormasters tried to deal with these issues but they need the encouragement, direction and authorization from Council. The value of commercial fishing jobs is not the exclusive benefit of a strong harbor. The character of Seward is tied to the ocean. Even tourists come to Seward to see a coastal town. Commercial Fishing is an important part. Page iof2 Speakers and contributors: • Abby Fredrick, VP External Affairs, Silver Bay Seafoods. • Kit Durnil, E&E Foods, Regional Fleet manager • Rhonda Hubbard, General Manager of Seafood Sales and Fisheries Compliance- J&R Fisheries & Kruzof Fisheries, LLC • Jim Hubbard, Managing Owner and Captain of Kruzof Fisheries, LLC - Catcher Processor/Freezer Longliner Kruzof. • Andy Wilder, Owner Operator of F/V Claire Oceana-- Harvester and Tender. • Mark Clemmins, Copper River Seafoods, Nathan Straubinger, Bob Linville City Engineer vs outsourcing everything: • South Uplands design work. There are many voices being raised as to the absurdity of the parking pattern, lease spaces and obscuring the boat harbor from easy view. Design issues such as heating, architecture, decks, should not be left solely in the hands of consultant engineers. The City of Seward has rushed headlong into costly outsourcing of planning, management for too many things. The reliance on outsourced design consultant/ engineers is not in the Cities best interest. For instance the apparent less than positive views on efficient, modern, alternate or renewable heat source is disheartening and short sighted. A building design that uses valuable ground and poor architectural choices for a windswept waterfront has been presented and should be re considered using local input. Sincerely, Bruce Jaffa Moose Pass Alaska Page 2 of 2 1' Seward Port & Commerce Advisory Board (PACAB) City of Seward, AK P.O. Box 167 410 Adams Street Seward, AK 99664 April 1, 2026 Dear Members of the Seward Port & Commerce Advisory Board, Thank you for the opportunity to provide information in support of PACAB's effort to better understand and report on commercial fishing conditions in the Seward region. Copper River Seafoods has purchased fish in Seward over the last 15-20 years, and we view Seward as an important port for supporting commercial fishing activity in Resurrection Bay and the Gulf of Alaska. In response to the topics outlined in your inquiry, we offer the following observations from our company's perspective. Current conditions of the industry Seward continues to play an important role in commercial fishing activity tied to Gulf of Alaska fisheries, including salmon, Pacific cod, halibut, and sablefish. For Copper River Seafoods, Seward is a strategic landing point for our fleet and we are growing our operations in the community to support fleet demand. All seafood purchased by our company in Seward is iced, packed in totes, and transported to our year-round manufacturing facility and cold storage operations in Anchorage, helping keep seafood handling, food manufacturing, and value-added work in Alaska. As our operations in Seward grow, our current 2026 operational goal is to land approximately 5 to 7 million pounds of seafood in Seward. At that level, we would expect to employ approximately 7 to 10 local workers in the first year of expanded operations. In addition to direct employment, seafood activity also supports vessel services, freight, fuel, supplies, maintenance, and other local business activity. Projections that would consider increases or decreases in the catch Commercial fishing activity in Seward has the potential to grow when resource availability, markets, and infrastructure align. From our standpoint, we see an opportunity for increased landings in Seward, particularly as fleets look for dependable buyers and efficient landing points for Gulf of Alaska fisheries. At the same time, catch levels and value can fluctuate significantly from year to year depending on both biological and economic conditions. Alaska sablefish abundance and growing domestic demand will likely benefit the Port of Seward, as it is a strategic offload location for this species. Possible reasons for any changes in catch quantity or value There are many factors that can influence changes in catch volume or value. These include stock abundance, changing ocean conditions, fishery management decisions, weather, fuel costs, labor 1 availability, freight costs, and market demand. Price and value are also shaped by broader seafood market conditions, including competition from imports, consumer demand, and the cost of moving product through the supply chain. What options might be available to address changes Many of the biggest drivers affecting catch quantity are outside the control of any one business or community. However, the industry is more resilient when ports have reliable working waterfront infrastructure, efficient offloading capability, predictable access, and room for seafood businesses to operate consistently. A functional public -use crane, power, and water are essential working waterfront infrastructure for commercial fishery operations in Seward. At present, in Seward, Copper River Seafoods is offloading with a boom truck, which is not an ideal or efficient long-term solution. Access to a public -use crane, power, and water would better support both the fleet and seafood buyers operating in the harbor. What can Seward do to help the industry From our perspective, Seward can help the industry by continuing to support a strong working waterfront and maintaining the infrastructure needed for commercial fishing activity. Functional equipment, dependable harbor access, and operational space all matter to seafood businesses and fishing fleets. In particular, a reliable public -use crane, power, and water would materially strengthen Seward's ability to support commercial landings and modern fishery operations. These practical conditions help determine whether a port is efficient, competitive, and attractive for Tong -term fishing activity. Conditions that make Seward an important port for fishing activities Seward is important because of its location, harbor access, and connection to productive Gulf of Alaska fisheries. It serves as a key point where fish can be offloaded and moved into the Alaska seafood supply chain, and access to the road system into Anchorage makes the port more attractive. For Copper River Seafoods, our efforts to build a stronger presence in Seward are tied to the needs of our growing fleet, many of whom have expressed interest in seeing us more firmly rooted there. We believe a stronger buyer presence benefits the fleet by creating additional market competition, which can improve pricing opportunities for fishermen, while also increasing local economic activity and landing tax contributions to the community. We appreciate PACAB's effort to gather information from across the fishing sector and are glad to contribute our perspective. Please feel free to reach out if additional information would be helpful. Sincerely, Copper River Seafoods 2 FEBRUARY 2026 i :onomic Value of ALASKA'S SEAFOOD Alaska's annual wild seafood harvest of 5 billion pounds produces significant economic benefits for Alaska communities, businesses and thousands of Alaskans. " • lotent„,„,_). Alaska comprised 63% of the U.S. commercial harvest and 1% of global seafood production wulu„c‘ on average in 2022 and 2023. Alaska's commercial fisheries employed 19,200 fishermen, 58% of whom were Alaska residents. l ishermen were paid $1.5 billion for the harvest Processing companies employed 21,000 workers and accounted for 62% of manufacturing employment in Alaska. Processors produced $4.2 billion worth of seafood products (rust wholesale value`. The seafood industry directly employed 41,800 people and created an additional 7,400 jobs in the state. Bering Sea Et Aleutian Islands 12,125 $2.5 billion WORKERS VALUE ADDED REGIONAL ECONOMIC IMPACTS Arctic-Yukon-Kuskokwim 875 $18 million WORKERS VALUE ADDED Southcentral 9,450 $774 million WORKERS VALUE ADDED Bristol Bay 13,575 $651 million WORKERS VALUE ADDED Kodiak 4,425 $537 million WORKERS VALUE ADDED Southeast 8,300 $746 million WORKERS VALUE ADDED IMPACTS OF ALASKA'S SEAFOOD INDUSTRY 5.2 billion Total economic value added to ,Alaska's economy by the seafood industry. $125 million $1.9 billion Total annual state, municipal, and federal taxes, fees and self -assessments paid by commercial fishermen and seafood processors in 2024. Annual tabor income generated by the seafood industry in Alaska. AU data represent annual average for 2023 and 2024 unless otherwise stated. MID info.request@alaskaseafood.org www.alaskaseafood.org PSPA admin@pspafish.net PACIFIC SEAFOOD www.pspafish.net rw,cc..w. .swo.no., director@ufa-hsh.org ufafish.org - SEAFOOD BEGINS TO REBOUND The Alaska seafood industry's 2024 ex -vessel value was the lowest recorded since 2000. However, 2025 ex -vessel value estimates project a 25% improvement from 2024. Salmon appears to have driven most of the gain. Alaska pollock held its value due to a combination of tight supply, steady consumer demand and generally low U.S. inventory. Slight increases in harvest limits, along with higher prices drove an increase for crab. Halibut and sablefish showed more modest increases in value, while Pacific cod prices improved but overall value declined due to lower harvests. MARKET TAILWINDS AMID STRUCTURAL PRESSURES Solid global demand for nutritious protein, slowing inflation, the U.S. ban on Russian seafood imports and tighter global inventories could continue to improve conditions in 2026. Yet the industry still faces headwinds: High operating costs (labor, fuel, energy, bycatch avoidance, regulatory compliance) erode profitability for both harvesters and processors. • Less fishing participation and processing activity reduces employment, labor income and economic benefits for Alaska coastal communities. • Alaska seafood depends on U.S. and global markets. Trade and tariff volatility disrupts markets and supply chains and increases costs for Alaska seafood suppliers. • Global competition from rival seafood -producing nations is intensifying, particularly from Russia as it seeks to expand non-U.S. market share following the U.S. import ban. UNITING TO PROTECT THE ALASKA PREMIUM Alaska seafood's premium reputation is the result of decades of strategic marketing, industry collaboration, commitment to quality and responsible management. The industry continues to innovate in product development to meet both U.S. and global demand. Working together to strengthen Alaska's market advantage protects Alaskan fishermen, processors, support businesses, communities and the state's long-term economic stability. For many coastal Alaska communities, the seafood industry is the Largest source of employment, wages and tax revenue. Learn more about the economic impact of Alaska's seafood industry Data are provided by McKinley Research Group for the Alaska Seafood Marketing Institute, January 2026. Al data represent annual average for 2023 and 2024 unless otherwise stated. EX -VESSEL VALt1E OF ALASKA SEAFOOD HARVEST 2015-2024 and 2025 Estimate ALASKA SEAFOOD HARVEST VALUE AND VOLUME BY SPECIES 29% Alas!, a Pollock 31% Salmon 2% Other Species 10% Halibut b Sablefish 10% Crab 1 9% Pacific Cod 9% Flatfish, Rockfish (including Atka MackereU Percent of Ex -Vessel Value 4) 60% Alaska Pollock 1% Other Species 1% Halibut & Sablefish <1% Crab 7% Pacific Cod 17% Flatfish, Rockfish (including Atka Mackerel) Percent of Volume 2025 v End Year Tax Collections for FY 2025 S r.11 :her tax called vns $68 million $55 8 million $43.6 million $31.4 million $19 2 million $7 million 2022 Fisheries Business Tax Annual Report Data Fisheries Business Tax Tax Collections from FY 2022 - FY 2025 2023 Collections Summary Established Shore -Based Established Floating Established Cannery Developing Prepayments Penalties and Interest License Fees 2024 2025 2025 2024 2023 2022 $25,067,115 $24,050,985 $42,773,621 $42,799,405 1,722,365 1,979,710 38 706,455 922,901 12,926 1,480,845 3,271,611 757 186,489 199,224 12,900 2,731,224 5,603,139 20,678 884,820 535,434 12,299 3,461,765 7,596,996 230 223,089 575,706 13,042 Total Tax General Fund Shared with Municipalities DCCED Municipal Allocation Filing Information Number of Returns Number of Taxpayers $30,411,510 $29,202,812 $52,561,215 $54,670,234 13,758,273 12,717,952 26,038,980 26,808,936 16,170,845 16,176,290 25,879,963 25,968,329 482,392 308,570 642,272 1,892,969 2025 1,087 440 2024 1,283 454 2023 1,119 437 2022 1,239 444