2017 - nsedcprovided with brokerage services, matching up buyers and sellers of boats and permits....
TRANSCRIPT
Annual ReportNorton Sound Economic Development Corporation
2017
MESSAGE FROM THE CHAIRMAN
2017 was another banner year for Norton Sound Economic Development Corporation (NSEDC). We are proud and humbled to present the year’s annual report that reflects accomplishments, activity and the ways in which our board and staff have worked to fulfill our mission. With another record commercial fishing season, the christening of the new vessel T/V
St. Lawrence, the development of the Growing Our Own Teachers initiatives, the extraordinary $2 million donation toward Norton Sound Health Corporation’s wellness and training center, and the countless other ways NSEDC has made a positive and significant impact in our member communities. I’m proud and happy to present this report that details the programs and projects through which NSEDC benefits the region and communities we call home.And that’s what we are most proud of. This report does not simply show the money coming in from the ownership of resources in the Bering Sea/Aleutian Islands fisheries and the money then invested into Norton Sound communities. Each page reflects decisions and action from individuals who are passionate and work hard to see that this organization provides benefit and meaningful devel-opment in our member communities.
In our Norton Sound Seafood Product (NSSP) operations, we strive every year to provide the infrastructure and pro-cessing capacity for eager, hard-work-ing fishers to take their gear and harvest from our rich waters. We strive every year to improve operations to maximize benefits to those fishers. While there can always be improvements —and we listen to fishers to improve operations—the results are there. NSSP and fishers alike celebrated another record harvest and payout. In 2017, $6.5 million was paid to salmon, crab, halibut and bait fishers compared to $1.7 million paid just 10
years ago. The past few years have proven that if NSSP provides the means, the infrastructure and processing capac-ity—and the fish runs are strong—fishers will work hard for meaningful income.
And the benefits and growth continue throughout NSEDC and each depart-ment. More than $7.8 million was distributed from the Community Ben-efits department through our various programs and grants in 2017. Some of these programs benefited each home in the region, like the $1.55 million paid toward member community house-holds’ electricity bills. The Consolidated Bulk Fuel program helps lower the cost of heating fuel and gasoline.
In our Education, Employment & Train-ing department, the board approved the Growing Our Own Teachers discretion-ary grant, along with a loan repayment program for residents who return to the region as educators. This decision shows that while NSEDC has celebrated profits and success, we remain commit-
ted to finding creative ways to promote healthy communities through employ-ment, education and empowerment.
While we are proud —and while I am happy to present this report—this is not a time to simply rest on our success and revel in accomplishment. We present this report knowing we must remain com-mitted to strengthening the economies in the region, whether it’s through commer-cial fisheries, empowering youth through scholarships, providing funding for infrastructure, or simply giving opportu-nity for a 4th grader to gain confidence on the basketball court. NSEDC has seen success through hard work and commitment, and we will continue to take responsibility to ensure benefits and positive results continue in each of our member communities.
Dan Harrelson Chairman of the Board
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Norton Sound Economic Development Corporation (NSEDC) is one of six Community Development Quota (CDQ) groups in western Alaska. Representing more than 8,700 residents in the Norton Sound region, NSEDC’s mission is to pro-vide economic development through edu-cation, employment, training and financial assistance to our member communities.
Through participation in the Bering Sea/Aleutian Islands fisheries, NSEDC fulfills our mission by reinvesting earnings into the Norton Sound region. These invest-ments are directed by a 15-member board, with each director representing one of the member communities.
These investments are conducted through our Norton Sound Seafood Products (NSSP); Norton Sound Fisher-ies Research and Development (NS-FR&D); Education, Employment and Training (EET); and Community Benefits programs that provide member commu-nities with economic development and financial assistance.
NSEDC has offices located in Anchor-age, Nome and Unalakleet, with a large majority of full-time staff located and working directly in the region. Every summer, hundreds of residents are em-ployed during the busy fishing and field seasons. These residents either work in processing plants, on tender vessels, at
buying stations, salmon enumeration camps, or as office assistants.
This report highlights the work accomplished in the various NSEDC operations and departments in 2017.
MISSION: NSEDC will participate in the Bering Sea fisheries to provide economic development through education, employment, training and financial assistance to our member communities.
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CONTENTS03 MESSAGE FROM THE CHAIRMAN06 ABOUT NSEDC07 CONTENTS08 NORTON SOUND SEAFOOD PRODUCTS 10 Processing Plants Buying Stations Vessel Fleet Commercial Fisheries Norton Sound Red King Crab Norton Sound Halibut Norton Sound Salmon Norton Sound Bait11 NSSP Harvest by Community13 NSSP Loan Programs Revolving Loans Large Vessel Loans14 COMMUNITY BENEFITS16 Shoreside Infrastructure Improvement Healthy Communities Outside Entity Funding17 Large Infrastructure Funding Community Benefit Share Small Business Initiative19 Energy Programs20 EDUCATION, EMPLOYMENT & TRAINING22 Training Scholarships23 Employment Opportunities Employment Statistics NSSP NSFR&D Partner Hire Community Employment Program24 NORTON SOUND FISHERIES RESEARCH & DEVELOPMENT26 Enumeration Projects Salmon Restoration and Salmon Incubation Salmon Lake Fertilization27 Clean Waters Crab Research30 QUOTA MANAGEMENT32 SIU ALASKA CORPORATION34 2017 NSEDC Board of Directors35 2017 NSEDC Staff36 2017 Community Highlights46 2017 Financials
ABOUT NSEDC
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NORTON SOUND SEAFOOD PRODUCTS
In 2017, more than $6.5 million was paid to Norton Sound salmon, crab, halibut, miscellaneous finfish and herring fishers, and nearly $2.4 mil-lion paid to 251 seasonal employees working in plants and on vessels. With another record commercial fishing season in 2017, Norton Sound Sea-food Products (NSSP) remains the strongest driver in NSEDC’s efforts to provide economic benefits to the region’s residents.
With processing plants in Nome, Un-alakleet and Savoonga; buying sta-tions in Shaktoolik, Golovin, Moses Point (Elim) and Koyuk; and a fleet of tender vessels —NSEDC remains committed to provide meaningful employment for hard-working men and women in the Norton Sound through NSSP operations and our in-region fisheries.
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BUYING STATIONSIn 2017 NSEDC operated fish buying stations in Shaktoolik, Golovin, Koyuk and Moses Point (Elim). These stations allow fishers to sell salmon close to home and also permit flexibility by eliminating the need to schedule pulls and sets based on a tender’s arrival. In 2017, 23 residents from member communi-ties were employed at buying stations, with $295,417 paid in wages.
VESSEL FLEETIn 2017, 23 seasonal employees were hired for NSEDC’s vessel operations with $595,507 in crew wages earned. NSEDC operated six vessels in the region to support Norton Sound fisheries operations. These vessels purchase crab and salmon directly from fishers and transport product to the processing facilities in Nome and Unalakleet.
PROCESSING PLANTSNSEDC operates processing plants in Unal-akleet, Nome and Savoonga. In 2017, nearly $1.5 million in wages was paid to 205 seasonal employees at the seafood processing plants (not including NSSP administration).
NSSP provides a housing stipend to provide oppor-tunity to individuals who live in member communities outside of Nome and Unalakleet. These individuals also have their travel paid so they can benefit from the employment opportunities created during the summer fishing season.
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SALMONNorton Sound salmon has long been an import-ant resource for Norton Sound residents, and it remains so in the commercial fishery. While Coho is the strongest source of income for salmon fishers, round-the-clock processing of all species provided for the opportunity of the record payout in 2017. In a quick 83-day fishery, 139 hard-working fishers delivered a record harvest of more than 2.5 million pounds of Norton Sound Chinook, sockeye, Coho, chum and pink salmon with an ex-vessel value of more than $2.79 million.
RED KING CRABThe Norton Sound red king crab fishers are provided two seasons for harvest and delivery to NSSP. In the 2017 open-access summer fishery, 36 fishers deliv-ered a total harvest of 409,374 pounds of red king crab with an ex-vessel value of more than $2.5 mil-lion. In the 2017 open-access winter crab fishery, 42 fishers delivered a total harvest of 36,583 pounds of red king crab with an ex-vessel value of $275,111. The 2017 CDQ red king crab fishery took place during the winter season and 45 fishers delivered a total harvest of 34,999 pounds with an ex-vessel value of $206,620.
HALIBUTThe Norton Sound Pacific halibut fishery has been highly valuable for the residents who have partic-ipated since the fishery opened in 1994. Fished off of St. Lawrence Island and outside of Nome, 121,676 pounds of halibut, with an ex-vessel value of $699,432, were delivered in 2017 by 20 fishers.
BAIT To support commercial crab and halibut fishing in the Norton Sound, NSSP purchases bait fish from member community residents throughout the year. Although small, the fishery allows residents to par-ticipate and make deliveries with little investment. In 2017, 16 fishers delivered either tomcod, Dolly Varden or herring to NSSP, earning $39,252.
2017 NSSP Harvest by CommunityCommunity* Pounds
Salmon CDQ Crab
O/A Sum-mer Crab
O/A Winter Crab
HalibutMisc. Finfish
HerringChinook Sockeye Coho Chum Pink
Elim 360 2,769 125,019 113,582 10,696 1,081 4,053 852 - - -Golovin 23 439 22,780 51,430 681 182 22,597 536 - 295 -Koyuk 618 1,544 34,443 196,228 13,349 - 4,314 - - - -Nome 81 2,912 40,779 46,767 355 31,152 251,038 35,073 96,863 7,464 -Savoonga - - - - - - - - 24,813 - -Shaktoolik 195 2,667 330,146 295,576 5,918 217 59,859 - - - 45,240Unalakleet 1,022 6,237 755,708 458,719 40,747 124 45,491 - - 1,591 63,799Stebbins - - - - - 399 - 57 - - -White Mountain - - - - - 1,844 22,022 601 - - -
Totals 2,299 16,568 1,308,875 1,162,302 71,746 34,999 409,374 37,119 121,676 9,350 109,039* ”Community“ refers to where a fisher resided, not necessarily where he or she fished.
During 2017, Norton Sound Seafood Products purchased four species of salmon, Norton Sound red king crab, Pacif-ic halibut, and bait fish, including Dolly Varden, herring and tomcod. Hard working regional fishers (and their crew, who are not reflected in the figures below) and strong local fisheries resources allowed NSEDC to again break a record and pay out more than $6.57 million to resident fishers for their harvest.
OPERATIONS
COMMERCIAL FISHERIES • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Since1993, NSEDC has offered loan services to Norton Sound residents, helping resident fishers participate and become more competitive in the Norton Sound commercial fisheries. Loans are available for Norton Sound fishers targeting catches that include herring, salmon, red king crab, halibut and bait fish. Residents are also provided with brokerage services, matching up buyers and sellers of boats and permits.
REVOLVING LOANSLow-interest loans are provided with minimal down payments to residents for vessel and equipment upgrades, and for purchasing vessels, fishing gear, outboard motors, Norton Sound salmon permits, Norton Sound herring per-mits, and Norton Sound red king crab License Limitation Program (LLP) permits.
In 2017, NSEDC made 27 loans totaling $280,734 to residents in the communities of Elim, Nome, Shaktoolik, Koyuk, and Unalakleet.
Revolving Loan Terms:• $25,000 maximum for commercial permit holders
• Up to 7-year payback terms
• 10% minimum down payment
• Credit check and 90-day delinquency limit
• 0% interest for three years
• 2% interest commencing in fourth year of loan
LARGE VESSEL LOANSThe Large Vessel Loan program provides further assis-tance to local fishers in acquiring suitable vessels, vessel upgrades, and vessel re-powers for participation in the Norton Sound red king crab and 4D/4E halibut com-mercial fisheries. NSEDC designed the Large Vessel Loan Program to maximize benefits to fishers at minimal cost. In 2017, NSEDC provided one large vessel loan for a vessel purchase and 10 loans for vessel repowering, upgrades, and insurance, totaling $239,745. These 11 loans were to residents in Nome, Shaktoolik, Unalakleet, and Golovin.
Large Vessel Loan Terms:• $100,000 maximum for LLP holders & $75,000 maximum for non-LLP holders
• Up to 10-year payback terms
• 10% minimum down payment
• Credit check and 90-day delinquency limit
• 0% interest for three years
• 2% interest commencing in fourth year of loan
LOAN PROGRAMS
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COMMUNITY BENEFITS
NSEDC understands that residents best know the needs of their community and invests in projects and programs allowing municipalities, tribal organizations and local nonprofits to apply millions of dollars in NSEDC funding to their specific needs. Investments also happen on a smaller scale, offering direct assistance to families or providing donations for fundraising efforts.
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OUTSIDE ENTITY FUNDING NSEDC annually sets aside money to contribute to regional efforts to fund programs, proj-ects and activities that benefit member communities.
In 2017, NSEDC awarded $814,288 toward Outside Enti-ty Funding projects. Each com-munity was allocated $60,000 for projects and/or programs identified as a priority. A Community Review Committee (consisting of each respective community’s NSEDC Director and at least two appointed residents) prioritized the com-munity’s funding requests. Those recommendations are reviewed by the full board for approval.
Communities that do not allocate their full amount of OEF funds are able to carry the remaining balance forward to
2018. An additional $100,000 is reserved each year for propos-als that have a regional impact.
Regional proposals are reviewed by NSEDC’s full board.
COMMUNITY INVESTMENTS
SMALL BUSINESS INITIATIVENSEDC rewards innovation through the Small Business Initiative (SBI) pro-gram. In 2017, NSEDC sponsored the 10th SBI, supporting entrepreneurs in developing or expanding their businesses.
In 2017, the competitive grant process allocated $160,000, with a $50,000 maximum, to be awarded among proposals. In 2017, NSEDC received 19 SBI applications, and a panel of independent judges selected three recipients. Since the SBI’s inception in 2008, NSEDC has awarded nearly $1.2 million to 43 small business owners in the region.
COMMUNITY BENEFIT SHARENSEDC has invested directly into the region through the 17-year history of the Community Benefit Share, with $28.2 million allocated in total to our 15 member communities since 1999. In 2017, the NSEDC Board of Directors dedicated $2.25 million to the program, equating to $150,000 for each community.
NSEDC provides this monetary distribution for communities to use as they determine. The effectiveness of this approach stems from the program’s guidelines created in 1999. Through a public meeting process, residents and leaders in each community decide how the Community Benefit Share will best be utilized for the community’s needs.
2017 Small Business Initiative Grant Recipients
Business Owner Descrip-tion
Community Award
JB Rentals, LLC Jesse Blandford Equipment Rental
Nome $34,028
Farley Mobile Sales & Repair
Howard Farley, Jr. Auto Service
Nome $50,000
Sea Laundry Colby Engstrom Laundro-mat
Nome $50,000
Total 2017 grant funding $134,02816
SHORESIDE INFRASTRUCTURE IMPROVEMENTSince 1993, NSEDC has invested in shoreside infrastructure in the region and remains committed to developing projects that support NSEDC’s mission with an emphasis in projects that support the region’s fisheries. The Shoreside Infrastruc-ture Improvement program provides funding for renovation and construction of fish processing facilities, dock or harbor facilities, or other infrastructure within NSEDC operations.
2017 Outside Entity Funding Grants
Organization Project Title AmountBrevig Mission School Healthy Hearts, Healthy Hands, Healthy Habits $46,693
Native Village of Brevig Mission Teen Center Grant $17,819
Native Village of Diomede Portable Waste Disposal Unit $60,000
City of Elim Community Sanitation Project $8,830
City of Elim Backhoe Purchase $67,486
Native Village of Elim Elim Trails Project $92,336
Native Village of Elim Quak Point Quarry Project $15,189
Gambell Presbyterian Church Church and Community Center Project $99,000
Gambell Schools High School Sports $16,500
Nome Community Center Van Replacement $31,284
Nome Northstar Swim Team 2017-2018 Swim Season $10,000
Native Village of Savoonga Elders’ Nutrition Program $36,000
Paul F. Asicksik, Sr. School Nauruq Educational/Cultural Exchange Trip $16,001
Native Village of Unalakleet Energy Efficiency Improvements $25,750
City of Unalakleet Unalakleet Solid Waste Facility Renovation $25,400
Unalakleet Schools Unalakleet School Basketball Travel $6,000
Native Village of Wales Kingikmiut Dance Festival $60,000
Regional GrantsCovenant Youth of Alaska Covenant Bible Camp Warm Cabins Initiative $20,000
KNOM Radio Mission KNOM AM Transmitter Replacement Project $60,000
Norton Sound Health Corp. Bering Strait Health Consortium Nursing Degree Program $100,000
Total $814,288
LARGE INFRASTRUCTURE NSEDC’s Large Infrastructure Program (LIP), introduced in 2015, addresses municipal and civic infrastructure needs within the Norton Sound region. The program allocates an overall total of $1 million per member community, with an additional $1 million reserved for regional infrastructure needs. Facilities constructed or renovated with NSEDC funding must serve all members of a community.
In 2017, NSEDC approved the contribution of $2,586,595 in LIP grants. Recognizing the tremendous need for sup-port and treatment services related to substance abuse, NSEDC made an extraordinary $2 million donation toward NSHC’s Wellness and Training Center.
2017 Large Infrastructure Grant Recipients
Organization Description Award
Norton Sound Health Corporation
Wellness and Training Center
$2,000,000
Native Village of St. Michael
Water & Sewer System Recovery
$300,000
Native Village of Diomede
Solid Waste Management
$156,200
Native Village of Teller
Teller IRA Building Renovation
$39,870
Native Village of Savoonga
Savoonga Lodge and Snack Shop
$90,525
Total 2017 grant funding $2,586,595
HEALTHY COMMUNITIESWhile NSEDC contributes to the economies of our commu-nities, we also take pride in supporting healthy activities in a variety of ways. NSEDC supports the youth in the region through the Little Dribblers Program and Middle School Activities by donating $6,000 to each school’s youth basketball program and $6,000 to various middle school activities in each regional school. NSEDC also provides $25,000 grants to each member community for organizations or programs that focus on substance and alcohol abuse prevention activities. NSEDC board members help direct this funding in their respective community.
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ENERGY PROGRAMSENERGY SUBSIDYSince 2008, the NSEDC Board of Directors has issued a total of $8.49 million to resident house-holds in the Norton Sound region through energy subsidies. In 2017, NSEDC paid a total of $1.55 million toward member community residents’ electric utility accounts.
COMMUNITY ENERGY FUNDThe Community Energy Fund was established in 2009 to promote the development of safe and reliable energy infrastructure in our mem-ber communities. The primary goal is to reduce energy costs for households, community facilities, and to help stabilize community-wide power and heating costs. The funding must reduce the costs or improve energy efficiency for all community households and/or provide an ongoing ener-gy-related benefit for the entire community.
Awards in 2017 included $155,460 to the Native Village of Diomede for the community’s Power Plant Renovation Phase II project to pro-vide consistent electrical power.
CONSOLIDATED BULK FUELFuel is one of the largest expenses for house-holds, municipalities and businesses in rural Alas-ka. Through the Consolidated Bulk Fuel program, NSEDC groups orders and negotiates fuel prices for participants in member communities, which ultimately results in lower fuel prices.
On behalf of the participants, NSEDC acts as a fuel purchasing agent and charges no interest or fees for administering the program, giving true benefit to the participants. NSEDC pays the fuel supplier directly, offering participants a one-year payment plan, payable to NSEDC.
In 2017, Crowley Marine Services completed the third of a three-year contract and delivered 1.6 million gallons of diesel and 482,000 gallons of gasoline worth more than $5.5 million to 26 participating vendors and entities.
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EDUCATION, EMPLOYMENT & TRAINING
NSEDC’s commitment to supporting education, employ-ment and training for the residents in our 15 member com-munities ties directly to our mission statement. We invest in residents’ educational and career goals, understanding that empowering individuals with skills and knowledge strengthens our communities.
Our Education, Employment & Training (EET) department has a sharp focus on supporting college and vocational students, on providing training for residents to gain em-ployment in Alaska fisheries, and on providing funding for regional training opportunities.
In 2017, NSEDC invested more than $1 million in residents who were seeking training and higher education.
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2017 Employment Statistics People Wages
Management/AdministrativeNSEDC 42 $2,918,806NSSP / Vessel Management 10 $892,852
Total Management/Administrative 52 $3,811,658
Bering Sea Partner Employment* 13 $483,360
NSSP Employment 228 $1,781,276
Regional Vessel Employment 23 $595,507
Other NSEDC Employment 24 $75,393
Fishing
Winter Open-Access Norton Sound Red King Crab 42 $275,112Summer Open-Access Norton Sound Red King Crab 36 $2,558,588NSEDC CDQ Red King Crab 45 $206,620Norton Sound Salmon 139 $2,790,544NSEDC CDQ Halibut 20 $699,432Bait 10 $6,541Herring 6 $32,711
Total Fishing** 212 $6,569,548
NSEDC Community Outreach Liaisons 13 $80,012
NSEDC Community Employment Program 11 $106,300
Fishery Technicians
NSEDC Salmon Rehabilitation 27 $387,728NSEDC Fisheries Development 4 $50,394
ADF&G Fishery Technician Interns (NSEDC funded) 5 $83,409
Total Technicians 36 $521,531
TOTAL EMPLOYMENT* 612* $14,024,585* “Total Employment” in this chart refers to those directly employed by NSEDC and those earning money through NSEDC-supported fisheries activities. ** Fishers are counted in each fishery they participate in, but only once for the total.
EMPLOYMENT OPPORTUNITIES
There is no doubt that in the Norton Sound, the summer season brings opportunity. NSEDC works very hard to ensure that op-portunity is provided to Norton Sound residents seeking employment. Whether it’s seasonal work at NSSP’s processing plants or buying stations, in the field at one of NSFR&D’s projects, in a tribal administration office through the Community Employment Program, or on a crabbing boat with our partners in the Bering Sea, NSEDC works diligently to create meaningful employment for residents in our 15 member communities.
NSFR&DIn 2017, 36 fisheries technicians were hired for NSFR&D and the Alaska Department of Fish & Game (ADF&G) salmon enumeration and other field projects with $521,531 in wages paid by NSEDC.More about NSFR&D employment on 23-25
NSSPNSSP paid out nearly $1.8 million to 228 residents who worked as seafood processors and fish buyers in 2017. Another $595,507 was paid to 23 individuals hired as crew for the summer tender vessel fleet. More about NSSP employment on 9-11.
PARTNER HIRENSEDC assists member community residents gain employment with our fishing and processing partners. In 2017, 10 residents worked with Glacier Fish Company, earning $246,658. Three additional residents worked with other NSEDC partners, earning more than $235,000. These individuals work on a catcher processor or a crabbing vessel, and have a unique opportunity for em-ployment throughout the year. Some turn the opportunity into a full-time career.
COMMUNITY EMPLOYMENT PROGRAMNSEDC implemented the Community Employment Program to support residents seeking further education. The program gives individuals employment experience and an opportunity to defray the cost of education by providing funding for communities’ city or tribal offices to hire college students as interns during their summer break. While the program is prioritized for scholarship recipients, it is also open to other member community residents. In 2017, 11 employees were hired through the Community Employment Program, earning $106,300 in wages.
Since 1992, NSEDC has distributed more than $10 million through our scholarship program to Norton Sound residents seeking educa-tion beyond high school. In 2017, more than $840,000 was invested in 273 individuals enrolled at an accredited college, university or vocational school. In 2017, full-time post-sec-ondary education and vocational training stu-dents received $2,500 per semester or session.
2017 NSEDC Education & Training Statistics
Scholarships Individuals Scholarships Expenditures
Post-Secondary 264 378 $818,335
Vocational 9 9 $22,500
Total Scholarships 273 387 $840,835
Training Trainings* Expenditures
Fisheries Related 33 $67,968
Other 307 $111,106
Total Training 340 $179,074
Total 727 $951,941
* Individuals may be counted more than once if they avail themselves of multiple NSEDC-supported training opportunities.
SCHOLARSHIPS
NSEDC is dedicated to providing Norton Sound residents the opportunity to equip them-selves with the necessary vocational experi-ence to enter the workforce. Courses include everything from seafood processing and mas-ter mate licensing to boiler maintenance and traditional crafts workshops. In 2017, NSEDC invested more than $111,000 in training op-portunities for Norton Sound residents, outside our scholarship program.
NSEDC also places value in training and building on the strengths of current full-time employees, largely in support of our regional seafood operations. NSEDC sponsored or trained many NSSP employees in leadership development, heavy equipment, safety, mari-time operations and repair.
TRAINING
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NORTON SOUND FISHERIES RESEARCH & DEVELOPMENT
Sustainable fisheries resources have long been a value shared by resi-dents in the Norton Sound region, and that value remains important today. The Norton Sound Fisheries Research & Development (NSFR&D) Department’s top three priorities are to help maintain sustainable popula-tions of some the region’s most prized species: king salmon, red salmon and red king crab. This work is done through a network of enumeration projects, numerous salmon resto-ration and enhancement projects, and a broad array of survey and research work.
With sustainability comes environ-mental stewardship. NSFR&D also administers environmental projects including a marine debris clean-up program and a water sampling pro-gram. NSFR&D additionally works as an advocate for regional interests.
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CLEAN WATERSNSEDC began beach clean-up projects in 2006. Since that year, clean-up projects have taken place in each of our 15 member communities, some more than once. In 2017, crews were hired in Elim, White Mountain and Savoonga to conduct clean ups. An additional amount of debris was removed in Unalakleet by the North River Tower crew while counting operations were suspended because of high water. Over the life of NSEDC’s Clean Waters program, 1,030,558 pounds of debris have been removed from Norton Sound beaches and flood plains.
CRAB RESEARCHRed king crab continues to be one of the most important resources in our region for both subsistence and commercial fishers. In spite of this impor-tance, there are gaps in what is known about the life cycle and migration patterns of Norton Sound red king crab. NSFR&D continues work to further understand the resource. NSFR&D and ADF&G partner on crab research projects, such as sending observers out on commercial Norton Sound red king crab vessels to collect data.
Another NSFR&D/ADF&G project looked into the impact of handling crab that are ultimately released back to the water during the winter commercial fishery. With an increase in commercial winter crabbing seen over the past few years, it is important to know the potential impacts on the overall stock. The results of the winter study indicated that there is minimal impact to the crab if they are released quickly in normal winter harvesting conditions. The possibility of crab mortality due to winter han-dling increases as air temperatures decrease and wind speeds increase. NSFR&D and ADF&G plan to continue to cooperate in conducting crab research within Norton Sound.
SALMON RESTORATION AND INCUBATIONIn 2017, NSEDC completed a transition to using heath trays to incubate salmon eggs in our Nome operations. The use of heath trays allows the program to raise and release the salmon as fry instead of planting them at the eyed-egg stage. NSFR&D plans to transition Unalakleet operations over to heath tray incubators in 2018. Spring 2017 fry releases went well. All Solomon River chum, Snake River chum and Snake River Coho eggs collected in 2017 were held to the fry stage and
released in May 2018. Fish River Coho and South River Chinook continue to be planted as eyed-eggs. Instead of Chinook, Fish River Coho were collected due to the poor Chinook return to the river system. These stocks will be transitioned to be planted as fry after logistical hurdles are overcome, hopefully in 2019.
NSFR&D works to restore Coho, chum and Chinook runs in various rivers in the region. Fisheries biologists and technicians take eggs from salmon that are ready to spawn, and fertilize and incubate them. The ability to raise fish to the fry stage may allow NSFR&D to expand the location at which restoration efforts can take place. The main challenge involved in this process is maintaining water quality with a limited water source. NSFR&D staff are actively pursuing improvements to the program’s water quality and recirculation capabilities by using biofilters while investigating other means.
2017 Incubation Programs
Snake River - chum & Coho
Solomon River - chumSouth River - Chinook
Fish River - Chinook/Coho2017 Clean Waters Programs
CommunityPounds of debris
removed
Elim 6,853
White Mountain 11,500
Savoonga 24,450
Unalakleet 3,00026
SALMON LAKE FERTILIZATION The Salmon Lake fertilization program aims to provide for stable sockeye salmon runs that meet the area’s subsistence and escapement needs. Smolt feed on zooplankton, which feed on phytoplankton, which feed on nitrogen and phosphorus. By adding nitrogen and phosphorus to Salmon Lake, where the Pilgrim River sockeye spawn, the NSFR&D team helps to ensure there is enough food for smolt to feed on before their migration to sea. Every year, NSFR&D tracks the smolt as they migrate out of the lake and through the Pilgrim River. The number, and more importantly, the size and age of the smolt give an indication of how successful fertilization has been and what can be expected in future returns. To analyze the effect of the fertilization program, water samples are collect-ed and analyzed from Salmon Lake multiple times each summer to track zooplankton levels and other important water chemistry parameters.
2017 NSFR&D Projects
Savoonga Marine Debris Clean-UpElim Marine Debris Clean-Up
Nome area Chum and Coho salmon rehabilitation; Salmon Lake fertil-ization; Pilgrim River sockeye smolt monitoring; Pilgrim River adult salmon counting weir; Eldorado River adult salmon counting weir; Snake River adult salmon counting weir; win-ter crab handling study
Koyuk Inglutalik River adult salmon counting tower
Shaktoolik Shaktoolik River adult salmon counting tower
Unalakleet Chinook salmon rehabilitation; North River adult salmon counting tower; herring monitoring; Marine Debris Clean-Up
White Mountain Fish River adult salmon counting tower; Chinook salmon rehabilitation (assisted Native Village of White Mountain); Marine Debris Clean-Up
Enumeration Projects
Snake River WeirPilgrim River Weir
Inglutalik River TowerShaktoolik River TowerEldorado River WeirNorth River TowerFish River TowersNome River Weir
Kwiniuk River TowerUnalakleet River Weir
SALMON ENUMERATION As salmon return to their spawning grounds each summer, NSFR&D is busy operating salm-on enumeration projects throughout the region through counting towers and weirs on area riv-ers. NSEDC also provides funding for the Alas-ka Department of Fish and Game (ADF&G) to hire fisheries technicians for their enumeration projects. The data collected at these stations is integral for sound management decisions for regional commercial and subsistence fisher-ies. Technicians providing this valuable data spend their summers in remote camps, gaining employment and field experience.
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QUOTA MANAGEMENT
NSEDC owns fishing rights allocated through the Community Development Quota (CDQ) program, and most of our revenue comes directly from this ownership in the pollock, cod, crab and ground-fish fisheries. However, it isn’t just CDQ allocated to NSEDC through federal law that provide this fishery income. NSEDC has purchased Individual Fishing Quotas (IFQs), which can be bought and sold on the open market, and translates to addi-tional revenue from Bering Sea/Aleutian Islands fisheries.
Over the years, NSEDC has made careful investments in IFQs to diversify our fishery holdings and provide financial stability. To harvest our CDQ and IFQ resources, NSEDC enters into agreements with har-vesters and processors to share in revenue from those harvests and the eventual sale of related products. NSEDC benefits from these arrangements through royalties or lease fees, profit-sharing, and distributions from ownership interests, as well as the em-ployment opportunities created for Norton Sound residents.
NSEDC enjoys long-standing relationships with most of these harvesters and has an ownership interest in some, including Gla-cier Fish Company and Siku Holdings, LLC, through our wholly owned subsidiary, Siu Alaska Corporation.
In 2017, NSEDC participated in 27 differ-ent fisheries between our CDQ and IFQ activity. Another strong year of harvests generated net revenues of more than $17.7 million from CDQ activity and nearly $5.2 million through IFQ activity.
CDQ Fishery Target Harvest Harvester
POLLOCK 29,590 mt F/T Alaska Ocean, F/T Pacific Glacier (Glacier Fish Company)
BERING SEA PACIFIC COD 4,276 mt F/V Bristol Leader, F/V Northern Leader (Alaskan Leader Fisheries); F/V Aleutian Sable (Arctic Sablefish, LLC), F/V Northern Glacier (Glacier Fish Company)
ALEUTIAN ISLANDS PACIFIC COD
300 mt F/V Courageous (Doug Wells); F/V Northern Glacier (Glacier Fish Company)
CRAB
E. Aleutian Is. golden king 69,510 lbs F/V Patricia Lee (Siku Holdings, LLC)
Bristol Bay red king 118,818 lbs F/V Tempo Sea (Tempo Sea, LLC)
Bering Sea opilio 388,260 lbs F/V Patricia Lee (Siku Holdings, LLC)
Western Bering Sea bairdi 45,004 lbs F/V Polar Sea (Arctic Hunter, LLC)
Norton Sound red king 38,790 lbs Norton Sound resident fishers
OTHER GROUNDFISH
Atka mackerel 1020 mt F/V Northern Glacier (Glacier Fish Company)
Pacific Ocean perch (POP) 440 mt F/V Northern Glacier (Glacier Fish Company)
Yellowfin sole 1,170 mt F/V Northern Glacier (Glacier Fish Company)
Rock sole 529 mt F/V Northern Glacier (Glacier Fish Company)
Flathead sole 221 mt F/V Northern Glacier (Glacier Fish Company)
Arrowtooth flounder 140 mt F/V Northern Glacier (Glacier Fish Company)
Greenland halibut 77 mt F/V Northern Glacier (Glacier Fish Company)
SABLEFISH
Bering Sea 23 mt F/V Ballyhoo (Diamondback Seafoods); F/V Pacific Mariner (BBEDC)
Aleutian Islands 60 mt F/V Ballyhoo (HAT, LLC); F/V Cerulean, F/V Cynosure (Far West Fisheries, LLC); F/V Blue Ballard (Blue North Fisheries, LLC)
HALIBUT
Bering Sea (Area 4D) 67,680 lbs Norton Sound resident fishers; F/V Oracle (Oracle, LLC); F/V Aleutian Sable (Arctic Sablefish, LLC)
IFQ FISHERY Target Harvest Harvester
SABLEFISH
Central Gulf of Alaska 124,263 lbs F/V Provider, F/V Alaskan Legacy (Wild Alaskan Seafoods, Inc.)
Western Gulf of Alaska 38,689 lbs F/V Provider, F/V Alaskan Legacy (Wild Alaskan Seafoods, Inc.)
Bering Sea 950 lbs F/V Ballyhoo (HAT, LLC)
Aleutian Islands 40,781 lbs F/V Ballyhoo (HAT, LLC)
HALIBUT
Gulf of Alaska (Area 3B) 8,586 lbs F/V Alaskan Legacy (Wild Alaskan Seafoods, Inc.)
CRAB
E. Aleutian Is. golden king 577,918 lbs F/V Patricia Lee (Siku Holdings, LLC)
W. Aleutian Is. golden king 892,233 lbs F/V Aleutian No. 1 (Siku Holdings, LLC)
Bristol Bay red king 113,505 lbs F/V Tempo Sea (F/V Tempo Sea, LLC); F/V Polar Sea (Arctic Hunter, LLC)
Bering Sea opilio 426,588 lbs F/V Patricia Lee (Siku Holdings, LLC), F/V Tempo Sea (F/V Tempo Sea, LLC)
SIU ALASKA CORPORATIONSiu Alaska Corporation (Siu) is NSEDC’s wholly-owned for-profit subsidiary. Created in 2009, Siu manages NSEDC’s for-profit investments. Siu is invested in four major fishing ventures in the Bering Sea and Aleutian Islands, and its operations are directed by a seven-member board whose members are appointed by the NSEDC Board of Directors.
GLACIER FISH COMPANYSiu is the largest owner of Glacier Fish Company (GFC), which owns and operates three catcher processor vessels: the Alaska Ocean, the Pacific Glacier, and the Northern Glacier. Using these vessels, GFC harvests and processes NSEDC’s CDQ pollock and flatfish allocations along with other quota. In 2017, GFC con-tinued successful harvesting and processing operations in the pollock and whiting fisheries with the Alaska Ocean and Pacific Glacier, and in flatfish fisheries with the Northern Glacier. Numerous regional residents have been employed on GFC’s vessels over the years.
GFC also owns an interest in and manages the operations of North Star Fishing Company (formerly Iquique U.S., LLC), a company that has four trawl vessels: Arica, Unimak, Rebecca Irene, and Cape Horn that harvest flatfish and groundfish in the Bering Sea and Aleutian Islands. In 2017, North Star Fishing Company continued construction of the North Star, a new, state-of-the-art vessel that will be used for multi-species flatfish and groundfish harvesting and processing. Construction of the North Star is expect-ed to be complete in 2018.
BSAI PARTNERSBSAI Partners is owned by Siu and Coastal Villages Region Fund. Together with minority owner Maru-ha, BSAI Partners owns six pollock trawl catcher vessels and the associated pollock quota. Five of these vessels, the Alaska Rose, Bering Rose, Sea Wolf, Destination, and Great Pacific actively participated in the Bering Sea pollock fishery in 2017. The vessels fish as part of the Unalaska Fleet Cooperative and deliver their catch to the Alyeska Seafoods plant in Dutch Harbor. The plant produces roe, surimi, and other products from this versatile fish. Combined, the five vessels harvested 118 million pounds of pollock in 2017, fishing from January to April and again from June to September. This company had another very successful year in 2017.
PACIFIC COD, LLPSince 2010, Siu has owned a Bering Sea Pacific cod catcher-processor permit with associated fishing rights. In 2017, Clipper Seafoods harvested 6.6 million pounds of cod for Siu.
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SIKU HOLDINGS Through Siku Holdings, Siu owns 50% of two crab harvesting vessels—the Aleutian No. 1 and the Patricia Lee. These vessels are owned in partnership with BAT Fisheries and Edward Poulsen, both long-time crab industry participants.
The Patricia Lee fishes for Eastern Aleutian Islands golden king crab and opilio crab. The Aleutian No. 1 fishes for Western Aleutian Islands golden king crab. Together, the two boats harvested nearly 3.2 million pounds of crab in the Bering Sea and Aleutian Islands in 2017.
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2017 NSEDC Board of Directors
Joel JamesP.O. Box 157Gambell, AK 99742(2014-2017)
Sara Seetot P.O. Box 85033Brevig Mission, AK 99785(2016-2019)
Frances OzennaP.O. Box 7046Diomede, AK 99762(2016-2019)
Oscar Takak, Sr.P.O. Box 39021Elim, AK 99739(2015-2018)
Truman KavaP.O. Box 154Savoonga, AK 99769(2015-2018)
Dean PetersonP.O. Box 62032Golovin, AK 99762 (2014-2017)
Leo CharlesP.O. Box 53047Koyuk, AK 99753(2014-2017)
Pat JohansonP.O. Box 743Nome, AK 99762(2015-2018)
Joseph GarnieP.O. Box 582Teller, AK 99778(2015-2018)
Milton CheemukP.O. Box 7St. Michael, AK 99659(2015-2018)
Harvey SookiayakP.O. Box 13Shaktoolik, AK 99771(2016-2019)
Daphne Katcheak P.O. Box 71048Stebbins, AK 99671(2014-2017)
Frank KatchatagP.O. Box 59Unalakleet, AK 99684 (2016-2019)
Sean Komonaseak, Jr.P.O. Box 524Wales, AK 99783(2016-2017)
Dan HarrelsonP.O. Box 190White Mountain, AK 99784 (2016-2019)
2017 NSEDC StaffADMINISTRATIONJanis IvanoffPresident & Chief Executive Officer
Simon KinneenVice President & Quota & Acquisitions Manager
Richard WalickiTreasurer & Chief Financial Officer
Tyler RhodesChief Operating Officer
Katie PetersonGeneral Counsel
Kathy WheelehanCorporate Secretary & Executive Assistant
Zara Ivanoff Human Resources Specialist
Laureli Ivanoff Communications Director
Banner Romenesko Safety Manager
John BakerSpecial Projects Coordinator
Scott Kent Quota & Acquisitions Analyst
Virginia NashalookSenior Accountant
Matt CoatesSenior Accountant
Teresa MartinAccountant
Heather KarmunPayroll Specialist
Hazel FreytagAccounts Payable Clerk
Darlene DeweyAccounting Assistant
Pearl DotomainAdministrative Assistant
Tommy Harrel Jr.Office Assistant
Albert JohnsonAdministrative Assistant
Delia OozevaseukCustodian
Charice JohnsonAdministrative Assistant
EDUCATION, EMPLOYMENT & TRAININGNiaomi BrunetteEET Director
COMMUNITY BENEFITSPaul Ivanoff IIICommunity Benefits Director
Sterling GologergenCommunity Development Coordinator
Kerilee IvanoffCommunity Development Coordinator
Stanley Pearson Community Benefits Specialist
NORTON SOUND SEAFOOD PRODUCTSWilliam JohnsonNSSP Operations Manager
Josh OsborneNo. NSSP Plant Manager
Justin NoffskerNo. NSSP Assistant Plant Manager
Frank DotySo. NSSP Plant Manager
Marcus Pedro So. NSSP Assistant Plant Manager
Rochelle FerryNo. NSSP Office Manager
Sherilee FooteSo. NSSP Office Manager
Karl EricksonVessel Manager
Brian Johnson Vessel Mechanic
Dawson KauerRefrigeration Technician (No. NSSP)
Richard Takak NSSP Sales & Support/Expeditor
Orville ToolieSavoonga Plant Manager
Justina NoongwookOffice Manager (Savoonga)
Dean PetersonGolovin Buying Station Manager
Russell SaccheusElim Buying Station Manager
Kyle Sagoonick Koyuk Buying Station Manager
Brian SavetilikShaktoolik Buying Station Manager
Harold MuktoyukSupervisor (No. NSSP)
Valerie AnagickSupervisor (So. NSSP)
Ed AnasogakQuality Control Coordinator (No. NSSP)
Nicole OttonQuality Control Coordinator (So. NSSP)
FISHERIES RESEARCH & DEVELOPMENTWes JonesNSFR&D Director
Charlie Lean NSFR&D Advisor
Kevin KeithFisheries Biologist
Renae IvanoffFisheries Biologist
Ashley DunkerFisheries Biologist
Rhonda Sparks Fisheries Biologist
Jacob IvanoffSenior Crew Leader
Kevin KnowltonSenior Crew Leader
Fred Jay IvanoffSenior Crew Leader
NSEDC COMMUNITY OUTREACH LIAISONSHelen Seetot Brevig Mission
Jolene Soolook Little Diomede
Emily Murray Elim
Megan Apassingok Gambell
Kirstie Ione Golovin
Jenna Homekingkeo Koyuk
Charlotte Kava Savoonga
Hannah Sookiayak Shaktoolik
Mary Long St. Michael
Joan Nashoanak Stebbins
Jazzlyn Garnie Teller
Joanne Keyes Wales
Yvonne Gregg White Mountain
BREVIG MISSION•Sara Seetot served as Board Member•Helena Seetot served as Community Outreach Liaison•The City of Brevig Mission was awarded $150,000 through the Community Benefit Share program•The Brevig Mission School was awarded $46,693 in Outside Entity Funding for the Healthy Hearts, Healthy Hands, Healthy Habits program•The Native Village of Brevig Mission was awarded $17,819 for the Teen Center•88 households received a total of $50,600 in utility subsidies from NSEDC•The community’s substance and alcohol abuse prevention grant provided a total of $11,363 to the Brevig Mission School and $13,637 to the Native Village of Brevig Mis-sion for various healthy activity programming.•NSEDC contributed $6,000 to the Brevig Mission School for the Little Dribblers Program•NSEDC contributed $6,000 to the Brevig Mission School for Middle School Activities•Eight residents received NSEDC scholar-ships throughout the year•One resident attended NSEDC-sponsored Tender Vessel Crew training•NSEDC made a $1,000 donation to the City of Brevig Mission’s Community Spring Cleanup•NSEDC made a donation to the City of Bre-vig Mission’s Community SAR Volunteer event and the Brevig Mission Ladies’ Basketball Team
LITTLE DIOMEDE•Frances Ozenna served as Board Member•Jolene Soolook served as Community Outreach Liaison•The City of Diomede was awarded $150,000 through the Community Benefit Share program• The Native Village of Diomede was award-ed $156,200 in Large Infrastructure funding for its solid waste management project•The Native Village of Diomede was awarded $60,000 in Outside Entity Funding for the Portable Waste Disposal Unit•38 households received a total of $21,850 in utility subsidies from NSEDC•NSEDC contributed $6,000 to the Dio-mede School for the Little Dribblers Program•NSEDC contributed $6,000 to the Dio-mede School for Middle School Activities•NSEDC made a donation to the City of Diomede’s 4th of July festivities
ELIM•Oscar Takak Sr. served as Board Member•Emily Murray served as Community Out-reach Liaison•The City of Elim was awarded $150,000
through the Community Benefit Share program•The City of Elim was awarded $8,830 in Outside Entity Funding for the Community Sanitation Project•The City of Elim was awarded $67,486 in Outside Entity Funding for a backhoe purchase•The Native Village of Elim was awarded $92,336 in Outside Entity Funding for the Elim Trails Project•The Native Village of Elim was awarded $15,189 in Outside Entity Funding for the Quak Point Quarry Project•93 households received a total of $53,473 in utility subsidies from NSEDC•The community’s substance and alcohol abuse prevention grant provided $22,000 to the Aniguiin School for School Activities and $3,000 the School’s Campus Life program.•NSEDC contributed $6,000 to the Anigui-in School for the Little Dribblers Program•NSEDC contributed $6,000 to the Aniguiin School for Middle School Activities•NSEDC’s Clean Waters program conduct-ed a marine debris cleanup in Elim•Eight residents received NSEDC scholar-ships throughout the year •Three residents completed NSEDC-spon-sored Buying Station training •Two residents completed NSEDC-spon-sored Tender Vessel training•21 fishers delivered salmon to NSSP during the year, earning more than $270,417•Two fishers delivered summer and winter crab to NSSP during the year, earning more than $38,332•One fisher delivered 295 pounds of finfish to NSSP during the year
GAMBELL•Joel James served as Board Member•Megan Apassingok served as Community Outreach Liaison•The City of Gambell was awarded $150,000 through the Community Benefit Share program•The Gambell Presbyterian Church was awarded $99,000 in Outside Entity Funding for the Church and Community Center Project•The Gambell School was awarded $16,500 in Outside Entity Funding for High School sports•166 households received a total of $95,450 in utility subsidies from NSEDC•The community’s substance and alcohol abuse prevention grant provided a total of $5,000 to the community’s Village Based Counselor and $20,000 to the John Apan-galook School for Sports Travel, School Activities and the Yupik Days Events.•NSEDC contributed $6,000 to the Hugo T. Apatiki Elementary School for the Little Dribblers Program
•NSEDC contributed $6,000 to the John Apan-galook School for Middle School Activities •Five residents received NSEDC scholar-ships throughout the year•Five residents attended an NSEDC-spon-sored Fisheries Safety Orientation Class•14 residents took an NSEDC-sponsored Traditional Regalia (qupaks) class•The City of Gambell participated in NSEDC’s Community Employment Pro-gram by employing an NSEDC scholarship recipient, or a resident of their choice if no recipient was available, during the summer•Glacier Fish Co. employed two residents as a crew members on the Alaska Ocean•NSEDC made a donation to Sivuqaq Incor-porated for the Annual Shareholders Meeting
GOLOVIN•Dean Peterson served as Board Member •Kirstie Ione served as Community Out-reach Liaisons•The City of Golovin was awarded $150,000 through the Community Benefit Share program•50 households received a total of $28,750 in utility subsidies from NSEDC•The community’s substance and alcohol abuse prevention grant provided a total of $10,000 to the Martin L. Olson School and $10,000 to the Chinik Traditional Council for student activities and projects and $5,000 to the Chinik Eskimo Community for Education-al Materials•Four residents received NSEDC scholar-ships throughout the year•One resident completed NSEDC-spon-sored Buying Station training •10 residents participated in an NSEDC-sponsored Women’s Parka Sewing course•10 fishers delivered salmon to NSSP during the year, earning more than $73,734•Three fishers delivered summer crab to NSSP during the year, earning more than $141,231•One fisher delivered winter crab to NSSP during the year•NSEDC made a donation to the Golovin Na-tive Corporation’s Annual Shareholders Meeting
KOYUK•Leo Charles served as Board Member•Jenna Homekingkeo served as Communi-ty Outreach Liaison•The City of Koyuk was awarded $150,000 through the Community Benefit Share program•93 households received a total of $53,475 in utility subsidies from NSEDC•The community’s substance and alcohol
Community Highlights
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abuse prevention grant provided a total of $2,142 to the Koyuk Covenant Church, $11,300 to the Native Village of Koyuk and $11,558 to the Koyuk Malimiut School for various healthy activity programming.•NSEDC contributed $6,000 to the Koyuk School for the Little Dribblers Program•NSEDC contributed $6,000 to the Koyuk School for Middle School Activities•Nine residents received NSEDC scholar-ships throughout the year•Three residents completed NSEDC-spon-sored Buying Station training•The City of Koyuk participated in NSEDC’s Community Employment Program by em-ploying an NSEDC scholarship recipient, or a resident of their choice if no recipient was available, during the summer•One fisher delivered summer crab to NSSP during the year•13 fishers delivered salmon to NSSP during the year, earning more than $208,941•NSEDC made a $1,000 donation for the Native Village of Koyuk’s Community Spring Cleanup
NOME•Pat Johanson served as Board Member•The City of Nome was awarded $150,000 through the Community Benefit Share program•The Nome Community Center was award-ed $31,284 in Outside Entity Funding for a van replacement•The Nome Northstar Swim Team was awarded $10,000 in Outside Entity Funding for the 2017-2018 Swim Season•Three residents were awarded a total of $134,028 through the 2017 Small Business Initiative grant program•The community’s substance and alcohol abuse prevention grant provided a total of $25,000 to the Nome Community Center, Nome Covenant Church, Nome Public Schools, Nome Preschool Association, Nome Volunteer Fire Department and to the Nome Winter Sports program.•1,278 households received a total of $734,850 in utility subsidies from NSEDC•NSEDC contributed $6,000 to the Nome Elementary School for the Little Dribblers Program•NSEDC contributed $6,000 to the Nome Public Schools for Middle School Activities• 144 residents received NSEDC scholar-ships throughout the year•Five residents attended NSEDC-spon-sored CPR & First Aid training•238 residents participated in Northwest Campus classes/trainings at a reduced tuition rate•Two residents attended an NSEDC-spon-sored Fisheries Safety Orientation Class•One resident attended Tender Vessel training
•The City of Nome participated in NSEDC’s Community Employment Program by em-ploying an NSEDC scholarship recipient, or a resident of their choice if no recipient was available, during the summer•Glacier Fish Co. employed three residents as crew members on the Alaska Ocean & Pacific Glacier•Siku Holdings, LLC employed one resident as a crew member on board the Patricia Lee•Six fishers delivered salmon to NSSP during the year earning $98,830•19 fishers delivered summer crab to NSSP during the year, earning more than $1.56 million•42 fishers delivered winter crab to NSSP during the year, earning more than $447,500•Eight fishers delivered halibut to NSSP during the year, earning more than $556,900•Five fishers delivered finfish to NSSP during the year•NSEDC made a $1,000 donation to the City of Nome’s Community Spring Cleanup and a $1,000 donation for the Community Fall Cleanup•Throughout the year NSEDC made do-nations for: Nome Community Center new vehicle fundraiser, Arctic Native Brother-hood Community Easter Egg Hunt, UAF/NWCC Kids to Campus Day Lunch, Nome Youth Softball, Nome Basketball Camp, Arctic Pinkies fundraiser, Nome Preschool’s Breakfast With Santa, Nome Pool Associa-tion’s Iditarod Pool Championships, Nome Covenant Church auction
SAVOONGA•Truman Kava served as Board Member•Charlotte Kava served as Community Outreach Liaison•The City of Savoonga was awarded $150,000 through the Community Benefit Share program•The Native Village of Savoonga was awarded $36,000 in Outside Entity Funding for the Elders Nutrition Program•The Native Village of Savoonga was awarded $90,525 in Large Infrastructure funding for its lodge and snack shop project•165 households received a total of $94,875 in utility subsidies from NSEDC•The community’s substance and alcohol abuse prevention grant provided $25,000 to the City of Savoonga for the community’s Holiday Celebration for Christmas and New Year’s activities.•NSEDC contributed $6,000 to the Hoga-rth Kingeekuk Memorial School for the Little Dribblers Program•NSEDC contributed $6,000 to the Hog-arth Kingeekuk Memorial School for Middle School Activities•Four residents received NSEDC scholar-ships throughout the year
•The Native Village of Savoonga partici-pated in NSEDC’s Community Employment Program by employing an NSEDC scholar-ship recipient, or a resident of their choice if no recipient was available, during the summer•12 fishers delivered halibut to NSSP during the year, earning $142,470•NSEDC’s Clean Waters program conduct-ed a marine debris cleanup in Savoonga•NSEDC made a $1,000 donation to the City of Savoonga’s Community Spring Cleanup and $1,000 for the Community Fall Cleanup•Throughout the year NSEDC made dona-tions for the Hogarth Kingeekuk Sr. Memo-rial School’s Teacher Appreciation Day, the Native Village of Savoonga’s Annual Mem-bership meeting, Kukulget, Inc.’s Community Whaling Celebration
SHAKTOOLIK•Harvey Sookiayak served as Board Member•Hannah Sookiayak served as Community Outreach Liaison•The City of Shaktoolik was awarded $150,000 through the Community Benefit Share program•The Paul F Asicksik, Sr. School was award-ed $16,001 in Outside Entity Funding for the Nauruq Educational/Cultural Exchange Trip•75 households received a total of $43,125 in utility subsidies from NSEDC•The community’s substance and alcohol abuse prevention grant provided a total of $25,000 to the Bering Strait School District, City of Shaktoolik, Paul F. Asicksik, Sr. School, Native Village of Shaktoolik, and to the Shaktoolik Native Store for various healthy activity programming.•NSEDC contributed $6,000 to the Shak-toolik School for the Little Dribblers Program•NSEDC contributed $6,000 to the Shak-toolik School for Middle School Activities•Four residents received NSEDC scholar-ships throughout the year•Four residents attended NSEDC-spon-sored Medic First Aid training •Seven residents attended an NSEDC-sponsored Off-Highway Driver License workshop•One resident attended NSEDC-sponsored Tender Vessel Crew training•The City of Shaktoolik participated in NSEDC’s Community Employment Program by employing an NSEDC scholarship recipi-ent, or a resident of their choice if no recipient was available, during the summer•25 fishers delivered salmon to NSSP during the year, earning $702,741•Five fishers delivered summer crab to NSSP during the year, earning $374,119 •One fisher delivered winter crab to NSSP during the year
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•Two fishers delivered herring to NSSP during the year•NSEDC made a $1,000 donation to the Native Village of Shaktoolik’s Community Spring Cleanup and $1,000 to the Commu-nity Fall Cleanup•NSEDC made a donation for the Commu-nity Easter Egg Hunt
ST. MICHAEL•Milton Cheemuk served as Board Member•Mary Long served as Community Out-reach Liaison•The City of St. Michael was awarded $150,000 through the Community Benefit Share program• The Native Village of St. Michael was awarded $300,000 in Large Infrastructure funding for its water and sewer recovery project•97 households received a total of $55,775 in utility subsidies from NSEDC•NSEDC contributed $6,000 to the Antho-ny A. Andrews School for the Little Dribblers Program•NSEDC contributed $6,000 to the Anthony A. Andrews School for Middle School Activities•Eight residents received NSEDC scholar-ships throughout the year•Two residents attended NSEDC-sponsored Tender Vessel Crew training •The City of St. Michael participated in NSEDC’s Community Employment Program by employing an NSEDC scholarship recipi-ent, or a resident of their choice if no recipient was available, during the summer•Glacier Fish Co. employed two residents aboard the Alaska Ocean•NSEDC made a $1,000 donation to the City of St. Michael for the Steve Otten Memorial Basketball Tournament•NSEDC made a $1,000 donation to the Native Village of St. Michael’s Community Spring Cleanup and a $1,000 donation to the City of St. Michael’s Community Fall Cleanup
STEBBINS•Daphne Katcheak served as Board Member•Joan Nashoanak served as Community Outreach Liaison•The City of Stebbins was awarded $150,000 through the Community Benefit Share program•The community’s substance and alcohol abuse prevention grant provided a total of $25,000 to the Stebbins Community Association, Stebbins Rural Cap Headstart program, Stebbins Native Store, and the Tukurngailnguq School. •120 households received a total of $69,000 in utility subsidies from NSEDC•NSEDC contributed $6,000 to the Tukurngailnguq School for the Little Dribblers Program•NSEDC contributed $6,000 to the Tukurn-
gailnguq School for Middle School Activities•One resident received NSEDC scholar-ships throughout the year•One resident attended an NSEDC-spon-sored Fisheries Safety Orientation Class at AVTEC in Seward•The Stebbins Community Association par-ticipated in NSEDC’s Community Employment Program by employing an NSEDC scholarship recipient, or a resident of their choice if no recipient was available, during the summer•One fisher delivered winter crab to NSSP during the year•NSEDC made a $1,000 donation to the Stebbins Community Association for the Community Spring Clean Up
TELLER•Joe Garnie served as Board Member•Jazzlyn Garnie served as Community Outreach Liaison•The City of Teller was awarded $150,000 through the Community Benefit Share program• The Native Village of Teller was awarded $39,870 in Large Infrastructure funding for its building renovation project•The community’s substance and alcohol abuse prevention grant provided $25,000 to the James C. Isabell School, Mary’s Igloo Traditional Council, Teller Traditional Council and Ravn Alaska for various healthy activity programming.•72 households received a total of $41,400 in utility subsidies from NSEDC•NSEDC contributed $6,000 to the James C. Isabell School for the Little Dribblers Program•NSEDC contributed $6,000 to the James C. Isabell School for Middle School Activities•Four residents received NSEDC scholar-ships throughout the year•One resident attended NSEDC-sponsored Tender Vessel Crew training•Eight residents participated in an NSEDC-sponsored Toyo Repair course•Nine residents participated in an NSEDC-sponsored Women’s Parka Mak-ing course•The City of Teller participated in NSEDC’s Community Employment Program by em-ploying an NSEDC scholarship recipient, or a resident of their choice if no recipient was available, during the summer•NSEDC made a $1,000 donation for the City of Teller’s Community Spring Clean-up and a $1,000 donation for the City of Teller’s Community Fall Cleanup•NSEDC made a donation for the Teller Traditional Council’s Cultural Festival and Mary’s Igloo Traditional Council’s Environ-mental Committee
UNALAKLEET•Frank Katchatag served as Board Member•The City of Unalakleet was awarded $150,000 through the Community Benefit
Share program•The Native Village of Unalakleet was awarded $25,400 in Outside Entity Fund-ing for the Unalakleet Solid Waste Facility Renovation•Unalakleet Schools was awarded $6,000 in Outside Entity Funding for Unalakleet School Basketball Travel•The community’s substance and alcohol abuse prevention grant provided a total of $5,000 to the Native Village of Unalakleet and $20,000 to the Unalakleet Schools for the Basketball Travel, Cross Country Skiing program, and the Spring Dance.•246 households received a total of $141,450 in utility subsidies from NSEDC•NSEDC contributed $6,000 to Unalakleet Schools for the Little Dribblers Program•NSEDC contributed $6,000 to Unalakleet Schools for Middle School Activities•49 residents received NSEDC scholarships throughout the year•Four residents participated in an NSEDC-sponsored Medic First Aid/CPR course•One resident attended the Alaska Sea-food Processing Leadership Institute •One resident completed NSEDC-sponsored Master Mate training at AVTEC in Seward•The City of Unalakleet and Native Village of Unalakleet participated in NSEDC’s Community Employment Program by em-ploying an NSEDC scholarship recipient, or a resident of their choice if no recipient was available, during the summer•Glacier Fish Co. employed three residents as crew members on board the Pacific Gla-cier and Alaska Ocean•Siku Holdings, LLC employed two residents as crew members on board the Patricia Lee•64 fishers delivered salmon to NSSP during the year, earning more than $1.4 million•Six fishers delivered summer crab to NSSP during the year, earning more than $284,300•Two fishers delivered winter crab to NSSP during the year•Four fishers delivered finfish to NSSP during the year•Four fishers delivered herring to NSSP during the year, earning $19,140•NSEDC’s Clean Waters program conduct-ed a marine debris cleanup in Unalakleet•NSEDC made a $1,000 donation to the City of Unalakleet’s Community Spring Cleanup•NSEDC made a $1,000 donation for the Unalakleet January Jamboree•Throughout the year, NSEDC made dona-tions for: Community Easter Egg Hunt, NYO Fundraiser, Sewing Circle Auction, the Native Village of Unalakleet’s Annual Meeting, Down Under Sports travel fundraiser, ASAA Senior All-Star Basketball travel fundraiser
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WALES•Sean Komonaseak, Jr. served as Board Member •Joanne Keyes served as Community Out-reach Liaison•The City of Wales was awarded $150,000 through the Community Benefit Share program•The Native Village of Wales was award-ed $60,000 in Outside Entity Funding for Kingikmiut Dance Festival•The community’s substance and alcohol abuse prevention grant provided a total of $19,109 to the City of Wales, Kingik-miut School, Native Village of Wales, and the Wales Native Corporation for various healthy activity programming•52 households received a total of $29,900 in utility subsidies from NSEDC•NSEDC contributed $6,000 to the Wales School for the Little Dribblers Program•NSEDC contributed $6,000 to the Wales School for Middle School Activities•12 residents participated in a 40-hour Hazardous Waste Worker course•NSEDC made a donation to the City of Wales’ 4th of July festivities and the Native Village of Wales’ Annual Meeting
WHITE MOUNTAIN•Dan Harrelson served as Board Member•Yvonne Gregg served as Community Outreach Liaison•The City of White Mountain was awarded $150,000 through the Community Benefit Share program•The community’s substance and alcohol abuse prevention grant provided a total of $3,500 to the White Mountain Covenant Church, $9,500 to the White Mountain School and $12,000 to the Native Village of White Mountain for various healthy activity programming•67 households received a total of $38,525 in utility subsidies from NSEDC•NSEDC contributed $6,000 to the White Mountain School for the Little Dribblers Program•NSEDC contributed $6,000 to the White Mountain School for Middle School Activities•10 residents received NSEDC scholarships throughout the year•Nine residents participated in an NSEDC-sponsored Off-Highway Driver License workshop•One fisher delivered summer crab to NSSP during the year•Two fishers delivered winter crab to NSSP during the year•NSEDC’s Clean Waters program conducted a marine debris cleanup in White Mountain•NSEDC made a $1,000 donation for the 32nd Annual Robert “Putto” Charles Basket-ball Tournament•NSEDC made a donation to the City of White Mountain for the 4th of July festivities
REGION-WIDE•NSEDC issued through its Community Benefit Share program $150,000 per member com-munity, dedicating $2.25 million in total in 2017•Crowley completed deliveries of fuel from NSEDC’s Bulk Fuel Program, distributing 1.6 million gallons of diesel fuel and 482,000 gallons of unleaded fuel to 26 participating vendors and entities for a total of $5.5 million•NSEDC paid a total of more than $1.55 million in utility subsidies to 2,700 resident households•NSEDC donated a total of $46,604 to families in member communities that experi-enced hardship•Covenant Youth of Alaska was awarded $20,000 in regional Outside Entity Fund-ing for the Covenant Bible Camp’s Warm Cabins Initiative•KNOM Radio Mission, Inc. was awarded $60,000 in regional Outside Entity Funding for the AM Transmitter Replacement Project•Norton Sound Health Corporation was awarded $100,000 in regional Outside Entity Funding for the Bering Strait Health Consortium Nursing Degree Program•NSEDC awarded $134,028 to three Small Business Initiative grant recipients•NSEDC’s Community Employment Program employed 11 residents over the summer, providing opportunity for scholar-ship recipients and other member community residents as well as resources for regional municipalities and entities •13 residents earned $483,360 working with NSEDC’s harvesting and processing partners in the Bering Sea•NSEDC contributed $5,100 in total dona-tions to Nome Public Schools and Bering Strait
School District for student travel to state compe-tition for Alaska Academic Decathlon, ASAA State Basketball, Alaska Science & Engineering Fair, Alaska State Spelling Bee, Yup’ik Spell-ing Bee, ASAA Cross Country Running State Championships, 2A Volleyball State Champi-onships, Alaska Wrestling State Championships•NSEDC made $5,000 contributions to KNOM, KICY and KNSA•NSEDC made $1,000 contributions for city league basketball tournaments•NSEDC made a $2,000 contribution to the LOIBC tournament•NSEDC made available $2,000 for each community for spring and fall community cleanups•NSEDC made donations for Kawerak’s Katirvik Indigenous Day and the Employee Christmas Potluck, Kawerak Leadership Summit and Bering Straits Regional Hous-ing Authority rental equipment
SHISHMAREF•14 residents received NSEDC scholarships throughout the year•The Shishmaref School received $6,000 for Middle School ActivitiesThe Shishmaref School received $6,000 for the Little Dribblers Program•NSEDC made a $1,000 donation to the Shishmaref Dog Mushers Association’s Spring Carnival•NSEDC made a $1,000 donation to the Shishmaref Environmental Program for the Community Spring Cleanup•NSEDC made a donation to the Shishmaref Wellness Coalition’s Wellness Picnic, City of Shishmaref’s 4th of July festivities, Shishmaref School’s Boys Basketball fundraiser
43
Schedule of General and Administrative Expenses Year Ended December 31, 2017
* The amounts shown on this statement reflect the combined expenses for NSEDC and Siu Alaska Corp. The amounts shown on this statement also only reflect the salaries, benefits and payroll taxes of NSEDC and Siu Alaska Corp.’s administration. The totals for all of NSEDC’s salaries, benefits and payroll taxes are $6,581,595; $1,684,112; and $607,413, respectively.
BOARD EXPENSES:Stipends/Honorarium $ 256,225 Transportation 114,599 Per Diem 208,177 Meetings Space, Catering & Meals 98,339 Insurance 12,262
STAFF:Salaries 1,657,302 Benefits 771,668 Payroll Taxes 140,731
TRAVEL/PER DIEM:Staff 168,819 Meals and Entertainment 1,707
TRAINING:Staff 2,920
OTHER:Audit/Accounting 113,873 Legal Fees 63,017 Meetings Space, Catering & Meal Expenses 4,705 Contract Services 1,208,551 Rent 191,721 Utilities 64,774 Supplies and Equipment 127,029 Postage/Freight 55,313 Communications 45,146 Insurance 508,043 Dues and Subscriptions 16,111 Equipment Repairs and Maintenance 7,311 Equipment/Storage Rentals 19,902 Advertising/Brokerage 5,681 Taxes 9,433 Fees and Licenses 67,036 Miscellaneous 3,406 Fisheries Tax Credit (200,000)Donations and Contributions 52,714 Discretionary Grants 318,468 Depreciation 155,097 Other Income and Expense 1,315,635Administrative and Management Fee 234,121 Total General & Administrative: $ 7,819,836
Norton Sound Economic Development Corporation
46
Consolidated Statements of Financial PositionDecember 31, 2017 and 2016
Assets 2017 2016
Current assets:Cash and cash equivalents $ 18,319,529 12,446,602 Designated cash and cash equivalents 518,782 22,435 Investments in marketable securities, short term 73,182,010 67,639,518 Accounts receivable 13,620,895 13,391,897 Interest receivable 14,513 12,635 Inventory at cost 1,367,622 1,417,848 Prepaid expenses and other assets 456,695 413,813 Assets held for resale 540,481 2,262,500 Short-term notes receivable 2,656,018 2,193,218
Total current assets 110,676,545 99,800,466
Notes receivable, net allowance of $845,918 and $872,457, in 2017 and 2016, respectively 1,919,364 3,168,918
Investments:Restricted cash equivalents 337,856 337,856 Investments in marketable securities 60,000 69,780 Designated investments in marketable securities 19,448,348 17,259,375 Investments in Glacier Fish Company, LLC 62,881,577 61,142,949 Investments in Unaatuq, LLC 472,217 453,896 Investments in BSAI Partners, LLC 4,760,972 4,709,727 Investments in Bering Select, LLC - 308,061 Investments in Marine Therapeutics, LLC - 116,333 Investments in quota share units 50,336,728 50,336,728
Total investments 138,297,698 134,734,705
Property, plant and equipment, net of accumulated depreciation of $18,959,304 in 2017 and $15,844,212 in 2016 20,470,788 19,541,465
Prepaid leases, net of accumulated amortization of $516,483 in 2017 and $481,627 in 2016 588,618 623,474Non-current deferred tax asset 2,197,741 2,123,922
Total assets $ 274,150,754 259,992,950
Liabilities and Net Assets
Current liabilities: Accounts payable and accrued expenses 9,178,935 10,270,197 Current portion, notes payable 3,624,591 3,648,591
Total current liabilities 12,803,526 13,918,788
Noncurrent liabilities:Notes payable 26,002,306 28,446,811 Total liabilities 38,805,832 42,365,599
Net assets:Controlling interests:
Unrestricted net assets:Undesignated 213,354,975 198,979,931 Designated 19,967,130 17,281,810
Non-controlling interests 2,022,817 1,365,610 Total net assets 235,344,922 217,627,351
Total liabilities and net assets$ 274,150,754 259,992,950
47
2017 2016Changes in unrestricted net assets:
Revenues, gains and other support: Harvesting revenue $ 21,650,764 25,489,500 Crab revenue 21,273,766 13,612,542 Fishing and fish processing 8,328,330 8,139,298 Investment income, net 11,357,969 5,351,606 Grant revenue 50,879 28,173 (Loss) gain on disposal 244,677 (3,000)Other income 317,458 368,070 Revolving loan income 35,338 29,245
Total unrestricted revenues, gains and support 63,259,181 53,015,434
Expenses and losses: Program services:
CDQ harvest management 4,177,237 1,185,254 Fisheries development 556,132 635,428 Salmon rehabilitation and enhancement 1,235,749 1,265,189 Training and scholarships 1,413,638 1,341,713 Revolving loan program (45,205) 80,984 Shoreside improvements 823,437 1,119,741 Community benefits 2,328,833 2,334,394 Bulk fuel 87,650 90,186 Energy subsidy utility payments 1,561,679 1,549,665 Small business initiative 190,798 215,999 Community outreach 1,392,236 1,969,853 Community energy fund 1,244,007 1,191,058 Tender vessel management 2,769,092 3,232,210
Total program services 17,735,283 16,211,674
Supporting services:Fishing and fish processing 14,094,346 14,084,375 Administrative expenses 5,284,478 4,319,007 Administrative expenses - Siu Alaska Corporation 1,021,959 420,206 Interest expense - NSEDC quota loan 105,689 106,234 Interest expense - Siu LOC, GB quota loan 333,257 281,293 Interest expense - KDS, Inc. 432,034 382,593 Siku Holdings, LLC expenses 12,710 5,103 Patricia Lee, LLC expenses 7,545,325 9,144,082 Aleutian No. 1, LLC expenses 3,673,667 2,944,332 Boat impairment - 131,252
Total supporting services 32,503,465 31,818,477
Total expenses 50,238,748 48,030,151
Equity in earnings of limited liability companies 6,688,096 8,518,101
Increase (decrease) in unrestricted net assets from operations, before taxes and non-controlling interests 19,708,529 13,503,384
Income tax (expense) benefit from: Deferred tax benefit 73,819 576,280 Operations (77,834) (70,800) Total income tax (expense) benefit (4,015) 505,480
Increase (decrease) in unrestricted net assets before discontinued operations and non-controlling interests 19,704,514 14,008,864
(Increase) decrease in unrestricted net assets attributable to non-controlling interest (957,207) (481,849)
Income (decrease) from discontinued operations, net of taxes (1,686,943) (3,211,181)
Increase (decrease) in unrestricted net assets $ 17,060,364 10,315,834
Consolidated Statements of ActivitiesDecember 31, 2017 and 2016
48
Supplementary Consolidating Schedule of Financial PositionDecember 31, 2017
Assets Siu Consolidated KDS NSEDC Eliminations
NSEDC Consolidated
Current Assets:Cash and cash equivalents $ 12,162,608 1,753,732 4,403,189 - 18,319,529Designated cash and cash equivalents - - 518,782 - 518,782Investments in marketable securities, short-term - - 73,182,010 - 73,182,010Accounts receivable, net 6,924,420 1,097,035 11,172,947 (5,573,507) 13,620,895 Interest receivable - - 14,513 - 14,513Inventory - - 1,367,622 - 1,367,622Prepaid expenses and other assets 419,546 - 37,149 - 456,695 Assets held for sale 475,000 - 65,481 - 540,481Net due to from intercompany 8,508 - 2,761,697 (2,770,205) - Short-term notes receivable - - 2,656,018 - 2,656,018
Total current assets 19,990,082 2,850,767 96,179,408 (8,343,712) 110,676,545
Notes receivable, net allowance of $872,457 - - 1,919,364 - 1,919,364
Investments:Restricted cash equivalents - - 337,856 - 337,856 Investments in marketable securities - - 60,000 - 60,000Designated investments in marketable securities - - 19,448,348 - 19,448,348Investments in Glacier Fish Company, LLC 62,881,577 - - - 62,881,577Investments in Unaatuq, LLC - - 472,217 - 472,217Investments in KDS, Inc. - - 9,851,070 (9,581,070) - Investments in Siu Alaska Corporation - - 81,387,733 (81,387,733) - Investments in BSAI Partners, LLC 4,760,972 - - - 4,760,972Investments in quota share units 6,811,750 24,000,000 19,524,978 - 50,336,728
Total investments 74,454,299 24,000,000 130,812,202 (90,968,803) 138,297,698
Property, plant and equipment, net of accumulated depreciation 3,987,857 - 16,482,931 - 20,470,788 Prepaid leases, net - - 588,618 - 588,618Non-current deferred tax asset 2,197,741 - - - 2,197,741
Total assets $ 100,629,979 26,850,767 245,982,523 (99,312,515) 274,150,754
Liabilities and Net Assets
Current liabilities: Accounts payable and accrued expenses 5,541,260 162,305 9,048,877 (5,573,507) 9,178,935Current portion, note payable 1,017,667 1,400,000 1,206,924 - 3,624,591Due to intercompany - 2,770,205 - ( 2,770,205) -
Total current liabilities 6,558,927 4,332,510 10,255,801 (8,343,712) 12,803,526
Non-current liabilities:Notes payable 10,660,502 12,937,187 2,404,617 - 26,002,306 Total liabilities 17,219,429 17,269,697 12,660,418 (8,343,712) 38,805,832
Net assets:Controlling interests:
Unrestricted net assets:Undesignated 41,467,240 9,581,070 213,354,975 (51,048,310) 213,354,975 Designated - - 19,967,130 - 19,967,130
Contributed Capital 39,920,493 - - (39,920,493) -Non-controlling interests: 2,022,817 - - - 2,022,817
Total net assets 83,410,550 9,581,070 233,322,105 (90,968,803) 235,344,922
Total liabilities and net assets $ 100,629,979 26,850,767 245,982,523 (99,312,515) 274,150,754
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Norton Sound Economic Development Corporation
Siu Consolidated KDS NSEDC Eliminations
NSEDC Consolidated
Changes in unrestricted net assets:Revenues, gains and support:
Harvesting revenue $ 1,327,706 1,128,404 23,413,015 (4,218,361) 21,650,764 Crab revenue 17,193,501 2,890,787 8,104,222 (6,914,744) 21,273,766 Fishing and fish processing - - 8,328,330 - 8,328,330 Investment income, net - - 11,357,969 - 11,357,969 Grant revenue - - 50,879 - 50,879 Gain (loss) on disposal 233,667 - 11,010 - 244,677 Other income 2,565 - 432,783 (117,890) 317,458 Revolving loan income - - 35,338 - 35,338
Total unrestricted revenues gains and other support 18,757,439 4,019,191 51,733,546 (11,250,995) 63,259,181
Expenses and losses: Program services:
CDQ harvest management - - 9,696,479 (5,519,242) 4,177,237 Fisheries development - - 556,132 - 556,132 Salmon rehabilitation and enhancement - - 1,235,749 - 1,235,749 Training and scholarships - - 1,413,638 - 1,413,638 Revolving loan program - - (45,205) - (45,205)Shoreside improvements - - 823,437 - 823,437 Community benefits - - 2,328,833 - 2,328,833 Bulk fuel - - 87,650 - 87,650 Energy subsidy utility payments - - 1,561,679 - 1,561,679 Small business initiative - - 190,798 - 190,798 Community outreach - - 1,392,236 - 1,392,236 Community energy fund - - 1,244,007 - 1,244,007 Tender vessel management - - 2,769,092 - 2,769,092
Total program services: - - 23,254,525 (5,519,242) 17,735,283
Supporting services:Fishing and fish processing - - 14,094,346 - 14,094,346 Administrative expenses - 1,879,553 4,800,427 (1,395,502) 5,284,478 Administrative expenses Siu Alaska Corporation 1,139,849 - - (117,890) 1,021,959 Interest expense - NSEDC quota loan - - 105,689 - 105,689 Interest expense - Siu LOC, GB quota loan 333,257 - - - 333,257 Interest expense - KDS, Inc. - 432,034 - - 432,034 Siku Holdings, LLC expenses 12,710 - - - 12,710 Patricia Lee, LLC expenses 10,185,914 - - (2,640,589) 7,545,325 Aleutian No. 1, LLC expenses 5,251,439 - - (1,577,772) 3,673,667
Total supporting services 16,923,169 2,311,587 19,000,462 (5,731,753) 32,503,465
Total expenses 16,923,169 2,311,587 42,254,987 (11,250,995) 50,238,748
Equity in earnings of limited liability companies 6,715,937 - 7,581,805 (7,609,646) 6,688,096
Increase in unrestricted net assets from operations, before taxes and non-controlling interests 8,550,207 1,707,604 17,060,364 (7,609,646) 19,708,529
Income tax (expense) benefit from: Deferred tax benefit 73,819 - - - 73,819 Operations (77,834) - - - (77,834)
Total income (expense) benefit (4,015) - - - (4,015)
Increase in unrestricted net assets before discontinued operations and non-controlling interests 8,546,192 1,707,604 17,060,364 (7,609,646) 19,704,514
(Increase) decreases in unrestricted net assets attributable to non-con-trolling interest (957,207) - - - (957,207)
Discontinued operations:Income (loss) from discontinued operations, net of taxes (1,686,943) - - - (1,686,943)
Increase in unrestricted net assets $ 5,902,042 1,707,604 17,060,364 (7,609,646) 17,060,364
Supplementary Consolidating Schedule of ActivitiesYear Ended December 31, 2017
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Financial Disclosure Information
Description of compensation policy for directors: Per diem and honorarium are paid to NSEDC and Siu Alaska Cor-poration directors for each day meetings are attended. The rate of per diem is $350 per day. Honorarium is paid at the rate of $300 per day. An additional $50 is paid to the Chairman of the Board for each Board meeting. NSEDC Board members also receive a month-ly stipend of $750 for NSEDC-related work between meetings. Total amount paid to directors: Compensation for NSEDC’s eighteen directors (fifteen current and three whose terms ended in 2017) was $322,400 in 2017.
Compensation for Siu Alaska Corporation’s eight directors (seven current and one whose term ended in 2017) was $21,749. Employee Compensation: Top five highest paid personnel within NSEDC and the majori-ty-owned subsidiaries
President and Chief Executive Officer Janis Ivanoff earned $217,310; Treasurer and Chief Financial Officer Rick Walicki earned $184,492; Siu Alaska Corporation President and Chief Executive Officer Cora Campbell earned $177,718; Vice President and Quo-ta and Acquisitions Manager Simon Kinneen earned $167,278; Chief Operating Officer Tyler Rhodes earned $156,290. Related Party Transactions: Description of any transactions over the amount of $20,000 with any director or their family members, include:
• None Legal proceedings involving directors: Description of any legal proceedings in which a director has an in-terest adverse to the CDQ Entity, including the name of the director.
• None Professional fees: List of totals*
Legal.............................$63,106Consulting....................$31,212Accounting...................$112,073Lobbying......................$0
*Includes those professional fees incurred as General and Administra-tive Expenses and those incurred as non-administrative expenses.
Auditor Relationship Auditor is Altman, Rogers & Co.
Description of any disagreement by the CDQ Entity with any auditor in the past two years:
• There were no disagreements with Altman, Rogers & Co. for 2017 and 2016.
Description of any non-audit services supplied by the auditor with disclosure of the fees paid for the non-audit services as a percentage of the total fees paid to the auditor:
• Non-audit service was for tax services related to the preparation of corporate tax returns. Total fees for non-audit services amounted to $31,129 or approxi-mately 29% of total fees paid to Altman, Rogers & Co.
CommitteesNomination or compensation functions, including a description of the committee’s functions and dates of any meetings held by the committee:
• Executive Committee
The Executive Committee members for 2017 were Dan Harrelson, Chairman; Dean Peterson, Vice-Chairman; Harvey Sookiayak, Sergeant-at-Arms; Pat Johanson; and Leo Charles.
The Executive Committee is responsible for planning the work of the full Board, setting meeting schedules and agendas, ensuring accountability of operations of the Corporation, setting guidelines between regular meet-ings, clarifying policy, and referring work or issues to other committees. The Executive Committee may exercise all of the authority of the full Board in the management of the Corporation, except where action of the Board of Directors is otherwise specified by statute, regulation, the bylaws, or the articles of incorporation.
The committee held meetings on February 8, May 3, August 7, and November 27, 2017.
• Compensation Committee
The Compensation Committee members for 2017 were Dan Harrelson, Frances Ozenna, Dean Peterson, and Harvey Sookiayak.
The Compensation Committee is responsible for reviewing requests by NSEDC management for increases in pay or annual bonuses for NSEDC officers and staff, and shall recommend approval or denial of such requests to the Board of Directors. The committee did not meet in 2017.
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Norton Sound Economic Development Corporation