2018 annual r eport

BBEDCP. O. Box 1464Dillingham, AK 99576

PRSRT STDUS Postage

PAIDAnchorage, AK

Permit #69

Bristol Bay Economic Development Corporation

Front cover photo courtesy of Misty Nielsen | Back cover courtesy of Tiera Schroeder.

P.O. Box 1464 Dillingham, AK 99576 | www.bbedc.com

2 0 1 8 A N N U A L R E P O R T

“Providing Opportunities... Accept the Challenge” “Providing Opportunities - Accept the Challenge”

Massa Pat, Economic Dev. /Brokerage [email protected]

Gary Cline, Regional Fisheries Director [email protected]

Anthony Zoch, Regional Fisheries [email protected]

Pearl Strub, Education, E/T [email protected]

Laticia Swift, Education, E/T [email protected]

Meg Schroeder, Accounting [email protected]

Marilyn Wilson, Accounting Technician [email protected]

Heather Nudlash, Administrative Assistant [email protected]

Marie Tinker, [email protected]

Norman Van Vactor, President/[email protected]

Helen Smeaton, Chief Operating O�[email protected]

Staci Fieser, Chief Financial O�[email protected]

Paul Peyton, Seafood Investment O�[email protected]

Chris Napoli, Chief Administrative O�[email protected]

Keggie Tubbs, Finance O�[email protected]

Matthew Robinson, Fisheries Quota [email protected]

Michael Link, BBSRI Executive [email protected]

Alice Ruby, Economic Dev./Brokerage [email protected]

BBEDC STAFF MEMBERS

BBEDC COMMITTEE MEMBERSBBEDC BOARD MEMBERSName Title CommunityH. Robin Samuelsen, Jr. Chairman DillinghamFred T. Angasan, Sr. Vice Chairman South NaknekRobert Heyano Director/Treasurer EkukHattie Albecker Director/Secretary UgashikLouie Alakayak, Sr. Director ManokotakMargie Aloysius Director AleknagikJustin Alto Director EgegikMark Angasan Director King SalmonJimmy Coopchiak Director TogiakPaul Hansen, Sr. Director NaknekKenneth Jensen Director EkwokMary Ann K. Johnson Director Portage CreekGerda Kosbruk Director Port HeidenVictor Seybert Director Pilot PointFritz Sharp Director Twin HillsAlexander Tallekpalek Director LevelockHarry Wassily, Sr. Director Clarks Point

Executive Committee H. Robin Samuelsen, Jr., ChairFred T. Angasan, Sr., Vice-ChairHattie Albecker, SecretaryRobert Heyano, TreasurerVictor SeybertGerda KosbrukMary Ann K. Johnson

Finance & Budget CommitteeRobert Heyano, ChairVictor SeybertFred T. Angasan, Sr.Hattie AlbeckerGerda Kosbruk

Audit CommitteeH. Robin Samuelsen, Jr., ChairMark Angasan

Regional Fisheries CommitteeRobert Heyano, ChairVictor SeybertMark AngasanHattie AlbeckerJimmy CoopchiakFred T. Angasan, Sr.

E&T/Education CommitteeMary Ann K. Johnson, ChairLouie Alakayak, Sr.Fritz SharpKenneth JensenMargie Aloysius

Policy CommitteeFred T. Angasan, Sr., ChairMark AngasanFritz SharpMargie Aloysius

Economic Development/BrokerageCommitteeExecutive Committee

Permit & Vessel Loan CommitteeRobert Heyano, ChairHattie AlbeckerLouie Alakayak, Sr.Alexander TallekpalekMark Angasan

Bristol Bay Science and Research InstituteExecutive Committee

Harvey Samuelsen Scholarship TrusteesMary Ann K. Johnson, PresidentFritz Sharp, Vice-PresidentKenneth Jensen, SecretaryGerda Kosbruk, TreasurerPaul Hansen, Sr.

Bristol Bay Ice, LLCH. Robin Samuelsen, Jr., ChairRobert HeyanoHattie AlbeckerMark Angasan

Mission Statement“It is the purpose of the Bristol Bay Economic Development Corporation to promote economic growth and opportunities for residents of its member communities through sustainable use of the Bering Sea resources.”

BBEDC DillinghamP. O. Box 1464Dillingham, Alaska 99576(907) 842-4370 / Fax: (907) 842-4336Toll free: 1 (800) 478-4370www.bbedc.com

BBEDC Anchorage8427 Laviento Drive, Ste. 101Anchorage, Alaska 99515(907) 644-8640Fax: (907) 644-8647

Aleknagik

Portage CreekNaknek

King SalmonSouth Naknek

Egegik

Pilot Pt.

Ugashik

Port Heiden

Ekuk

DillinghamTwin Hills

Manokotak

Togiak

EkwokClarks Pt.

Levelock

“Providing Opportunities... Accept the Challenge”

“Providing Opportunities... Accept the Challenge”2 “Providing Opportunities... Accept the Challenge”

Message from the President/CEOGreetings!On behalf of BBEDC staff, it is with great pleasure that we share with you our 2018 Annual Report. Given the scope and breadth of our programs, the pages that follow provide a good snapshot of activities and will hopefully impart an understanding of our work. While challenging at times, the support and opportunities we try to help facilitate for the residents of our communities and region are significant and rewarding.

And how about Bristol Bay Salmon Season 2018! Sockeye came roaring back to our rivers setting a new all-time run record of 62.3 million. The Nushagak District set a new all-time record for single district harvest with 24.1 million fish caught. Just based upon advanced fish prices it came to over $281 million in ex-vessel value. Bristol Bay alone produced over 50% of the world’s sockeye salmon in 2018. Those are just some of the amazing statistics for which we are so grateful for. It also reinforces why we continue to work so hard to protect this incredible resource and our region from incompatible forms of nonrenewable resource extraction.

In an effort to enhance the entire fishery, the BBEDC Board expanded the Vessel Upgrade Program to encompass the Bristol Bay Watershed this year. Now qualifying watershed residents can benefit from up to a $35,000.00 grant to upgrade their fishing vessel or up to $17,500.00 for set net operations. Good stuff and it IS helping make a difference.

We would be remiss if we didn’t thank our seafood partners at Arctic Storm, Alaskan Leader Fisheries, Dona Martita, Mariner Group, and Ocean Beauty for helping make all of this happen. At any one-time employees are out on a platform pitching fish in the dark and cold of the Bering Sea, or filleting a sockeye salmon at a shore-based plant. This is where it all starts and enables everything else that follows.

Probably the single biggest piece of news in 2018 amongst our partners was the start of construction of the new F/V Arctic Fjord. When complete in 2021, she will be the most state of the art pollock factory trawler in the world.

Norm Van Vactor andgrandaugher Freya

F/V Arctic Fjord currently under construction

“Providing Opportunities... Accept the Challenge” “Providing Opportunities... Accept the Challenge” 3“Providing Opportunities... Accept the Challenge”

Message from the Chairman of the BoardCamai!It’s hard to believe another year has already gone by. BBEDC investments in both quota and partnerships are doing well. Although it looks like the Bristol Bay King Crab quota will be down in 2020, our crab fleet is second to none with great boats and crew. Both our inshore and offshore pollock partners had a good year fishing and plans for construction of the new Arctic Storm Holding Company vessel are moving along. Alaskan Leader continues to harvest cod and introduce excellent value added products into the market. If you shop at Costco, try some of the delicious Alaskan Leader brand cod items in the freezer!

BBEDC has many opportunities for its residents and communities,I encourage you to take advantage of every one of them. Education is very important and residents are stepping up to the plate and using these funds. It sure makes the BBEDC Board and I proud to see people who take advantage of those programs graduate, it is a great first step to a bright future.

I would like to thank the staff at BBEDC, these folks do not hear “thank you” enough.” They work very hard for the corporation as well as the communities and residents we service. Keep up the good work!

Finally, on behalf of the Board of Directors, we want to thank you, our community members, for continuing to provide valuable input about BBEDC and its programs. BBEDC will continue to grow in the future and we promise to do the best job we can for our communities and region.

Sincerely,H. Robin Samuelsen, Jr.Board Chairman

H. Robin Samuelsen, Jr.

As for this year’s photo, I thought I’d share some space with Freya. Freya is the youngest girl of our six awesome grandkids. No question that she’s going to be a Bristol Bay Fisherwoman and Aviator. While much of what we do at BBEDC may be reacting to the moment, we also strategize, helping to build and ensure a positive future. Yes, for our kids, their kids, and all the generations to follow. Yes, dividends and financial returns today are critically important to supporting our programs but reinvesting and growing our position in the renewable resources of the Bering Sea and our region are our future.

BBEDC and staff are here for our communities and because of our communities. We are committed to the pursuit of our mission. Please stop by any time and get caught up on the latest. The coffee is always on!

All Our Best,Norm Van VactorPresident/CEO


Youth Employment and EducationArctic Tern Grant Program

The Arctic Tern Grant Program continues to provide funds to address the challenge of limited opportunities for employment and educational

activities for youth under the age of 17 in BBEDC communities. Grants of up to $6,000.00 were made available to each BBEDC community and 10

communities were awarded grants in 2018 for a cumulative total of $58,275.00.

Grant projects included student travel to the AFN Elders and Youth Conference, employment at local stores, visits to educational institutes in Alaska for career/

education exploration, student positions at a village owned farm, community clean-up, and painting/refurbishing local community buildings and roads.

Clockwise from top: Ekuk-Dillingham AFN trip; Port Heiden Farm; Naknek student trip; Ugashik Clean-up; ManokotakClean-up.

4 “Providing Opportunities... Accept the Challenge”

“Providing Opportunities... Accept the Challenge” “Providing Opportunities... Accept the Challenge”

OutreachCommunity Liaison ProgramCommunity Liaison grants of $48,000.00 were awarded to each of 16 community applicants for a total investment of $768,000.00 in 2018. The grants are available to each CDQ community (city or tribal organization) to fund a liaison for delivery of BBEDC program services. The individual is an employee of the grant recipient and in most cases provides additional support to the employing organization with other tasks such as preparation and/or management of grants, preparation of newsletters, coordinating community events, supervising youth workers, accounting, records management and much more. In 2018, BBEDC Community Liaisons reported 1,392 individual contacts with residents to provide information and assistance. The current BBEDC Community Liaisons are:

Aleknagik: Shellie Aloysius ............ (907) 842-2856

Clarks Point: Sandra Olsen ............ (907) 236-1479

Dillingham: Bernadine Dull ........... (907) 842-2384

Egegik: Roberta Alto ..................... (907) 233-2211

Ekuk: Sabrina Savo ........................ (907) 842-3842

Ekwok: Sophie Kaleak ................... (907) 464-3349

King Salmon: Joni O’Domin .......... (907) 246-3553

Levelock: Deserae Wassillie .......... (907) 287-3167

Naknek: Ann Forthofer .................. (907) 246-4210

Manokotak: Carla Moore............... (907) 289-1429

Pilot Point: Sophie Abyo ............... (907) 797-4144

Port Heiden: John Christensen, Jr. (907) 837-2296

South Naknek: Karl Rawson........... (907) 469-0369

Togiak: Joe Alexie ......................... (907) 493-5003

Twin Hills: Debbie Snyder ............. (907) 493-2520

Ugashik: Mike Enright ................... (907) 797-2400

Community Liaison TrainingIn March, BBEDC hosted the Community Liaison Training in Dillingham; an annual event designed to assure that Community Liaisons are kept current on all BBEDC programs and services. Community Liaisons, their supervisors, as well as City and Tribal Administrators, attended the 2-day event where participants gained important information on existing, new or changing BBEDC programs. The event also provides an opportunity for Community Liaisons and Administrators to exchange ideas and information among themselves and with BBEDC staff.

5“Providing Opportunities... Accept the Challenge”

Roberta Alto - Egegik

Debbie Snyder- Twin Hills

Shellie Aloysius - Aleknagik

John Christensen, Jr.- Port Heiden


Economic DevelopmentBBEDC Community Block Grant ProgramIn 2018, an allocation of $500,000.00 per community was available through the Community Block Grant Program which provides BBEDC communities the opportunity to accomplish projects that promote sustainable community and regional economic development. Optionally, communities may choose to use the grant funds to assist eligible resident households in the respective BBEDC communities to purchase home heating fuel and/or electricity. To be eligible, resident households must meet income requirements and assistance is limited. Communities can also use the funding for operations and maintenance (O&M) of infrastructure and ice machines to which the community owns title. The following were awarded:

Aleknagik $500,000Multipurpose Building Design Land SurveyHeating Fuel/Electricity AssistanceAleknagik Traditional Council Facility O&M

Clarks Point $233,750.80Heating Fuel/Electricity AssistanceClarks Point Old School Renovation Project

Dillingham $500,000Fish Processing Facility; Construction and Equipment

Egegik $500,000Bulldozer PurchaseDuplex Construction Project

Ekuk $500,000Phase V Construction of Ekuk to Clarks Point Road

Ekwok $500,000Warm Storage/Firehouse Building ConstructionEnvironmental Review of Dillingham Boat Harbor Lease Parcel

Levelock $500,000Fish Processing Plant Design and EngineeringHeating Fuel/Electricity AssistanceVillage Council Building & Clinic O&M

Manokotak $500,000Purchase Dump Truck and TractorHeating Fuel/Electricity Assistance

Naknek $500,000Upgrade/Repair M/V Seahorse Phase III BDolly’s Hall, Clinic, Boys & Girls Club O&M

Pilot Point $500,000Seafood Processing Plant Final DesignHeating Fuel/Electricity AssistanceHeavy Equipment Building Construction

Port Heiden $500,000Heating Fuel/Electricity AssistanceCommunity Center RenovationUpgrade/Repair and Fencing for Farm BuildingFishermen Shop Building UpgradeMeshik Seafood Processing Plant

Portage Creek $500,000Housing Feasibility & Business PlanPurchase Building for Village Council Office

South Naknek $499,636.40Heating Fuel/Electricity AssistanceLand Purchase for Boat Shop, Phase 1Boat Shop Construction Phase IIItinerate Housing Rehabilitation ProjectVillage Council Building, Greenhouse, Clinic O&M

Togiak $500,000Community Development Marine Outfall Line Construction

Twin Hills $500,000Landfill Relocation Construction & CloseoutElectrical Powerline Extension & Streetlight Construction ProjectHeating Fuel/Electricity AssistanceVillage Council and Clinic O&MWater Distribution System UpgradeWater/Wastewater System Repair Project

Ugashik $500,000Cannery, Clinic and Equipment Buildings Improvement ProjectHeating Fuel/Electricity AssistanceCommunity Ice Machine O&MVillage Council Building O&M



Economic DevelopmentBBEDC Community Block Grant Projects1. Ekwok Warm Storage/Firehouse Building2. Ugashik Cannery Roofing Project3. Egegik Bulldozer Purchase4. Ugashik Hybrid Energy System5. Levelock Processing Plant

1

3

2

4

5



Permit Services and AssistanceEmergency Transfer Grant ProgramBBEDC invested $167,500.00 and provided an opportunity for 25 resident fishers to acquire a permit under an emergency transfer in 2018. Increasing resident ownership of limited entry permits is a continuing goal of BBEDC. Lack of access to a limited entry permit because of cost or limited supply of permits can become a barrier to future ownership and ultimately entry into the fishery by residents. The Emergency Transfer Grant Program helps residents obtain a temporary permit under a CFEC approved Emergency Transfer. A temporary permit transfer provides an opportunity to explore commercial fishing as a feasible income generating activity, earn funds for the down payment necessary to purchase a permit, and enhance a person’s knowledge of the fishing industry.

Pamela Murphy, 2018 Emergency Transfer Grant Recipient


Bristol Bay Permit BrokerageThe Bristol Bay Permit Brokerage continues the effort to retain resident ownership of permits by providing technical assistance/services designed to enhance resident success and inhibit or reverse the migration of limited entry salmon permits out of the Bristol Bay region. Assistance is provided with crew contracts, emergency transfers, permanent transfers, regulatory requirements relative to permit and vessel ownership and reporting requirements associated with the Commercial Fishing Entry Commission and the U.S. Coast Guard. This program also assists with completing loan applications for purchasing or upgrading fishing operations. In 2018, more than 119 individuals were assisted with fishing related transactions.

Business of Fish WorkshopsBBEDC’s annual Business of Fish workshops provide a forum for learning and informationexchange for participants of BBEDC’s Permit Loan and Vessel Acquisition programs as wellas current and future Bristol Bay fishers. Workshops were coordinated in Dillingham as astand-alone event and in Naknek in conjunction with the Bristol Bay Fish Expo. In 2018,partner organizations that provided financial, staff and other resources included the SeaGrant Marine Advisory Program, UAF Bristol Bay Campus, Naknek Native Village Council,Bristol Bay Fish Expo, Alaska Department of Fish and Game, Alaska Department of NaturalResources, Alaska Division of Economic Development, Alaska Commercial Fishing andAgriculture Bank, US Coast Guard, Money Management International and the AlaskaBusiness Development Center.

Interest Rate Assistance ProgramAccess to capital (loans/financing) is necessary for any business operation to assure productive and competitive assets (boats, fishing gear, limited entry permit). The Interest Rate Assistance (IRA) Program assists resident fishers with a portion of the interest on loans specifically for the purchase of a limited entry permit, a commercial fishing boat, or commercial fishing gear. Resident fishers reported that the savings gained from the IRA were invested in new gear, further improvements to their vessels and provided an incentive to seek financing to purchase new vessels which enhanced their ability to become more competitive. In 2018, BBEDC assisted 21 resident fishers by paying $40,604.06 in interest on their behalf.


Permit Services and AssistanceVessel Acquisition ProgramIn 2018, the Vessel Acquistion Program saw the entry of four resident drift fishers and one resident set fisher, bringing the total number of participants to 14. The cumulative investment was $165,936.09 for down payment grants, annual “sweat” equity and interest subsidies. Two participants successfully completed their obligations under the program and exited previously.

The program can provide a down payment grant, interest subsidy, equity assistance, training and technical business counseling. An RSW incentive was added to the program which increases the potential amounts available for down payment or equity assistance if the vessel being purchased has an operating RSW system. Applicants must be able to obtain a loan through one of BBEDC’s partner lenders (CFAB or DED) or any established lending institute that can be considered under this program.

Anna Hoover’s “acquisition” F/V MYUDA

Anna Hoover,2018 Vessel Acquisition

Program Recipient



Permit Services and AssistanceShore Fish Lease Grant ProgramA shore fishery lease gives the leaseholder priority to use a shore fishery site for commercial salmon set net fishing on state-owned tidelands. This “first priority” applies only when the leaseholder is personally fishing the site. A shore fishery lease is not required for set net fishing; however, many individuals choose to obtain a shore fishery lease because it guarantees they will be able to fish in the same location each year. The Shore Fish Lease Grant Program provides financial assistance and incentive in the form of a grant of up to $800.00 for resident set net permit holders to navigate the complex and cost prohibitive process of gaining a shore fishery lease. One grant of $800.00 was awarded in 2018.

Permit Loan ProgramRetaining and returning limited entry permits to the region continues to be a BBEDC priority. The Permit Loan Program enhances residents’ ability to purchase and successfully operate a limited entry salmon permit through a menu of financial and technical services including loan guarantee, down payment grant, interest assistance, principal reduction assistance, technical assistance and/or training to successful applicants. Participants are selected through an evaluative process. This program is unique in that it is available to residents of all the 25 Bristol Bay watershed communities. BBEDC added ten new residents (3 set net fishers and 7 drift fishers) to the program; bringing the total active participants to 51 by the end of 2018. The total does not include participants that have exited the program. In 2018, a total of $414,868.10 was paid out for down payment grants, previously committed equity assistance (sweat equity) and interest subsidy which are critical for assuring that residents can gain the financing necessary to secure drift or set permits.

Nushagak District- Photo courtesy of Misty Nielsen



Economic Development Program ServicesTechnical Assistance ProgramBBEDC feels that entrepreneurs are an asset to be cultivated, motivated and rewarded to the greatest extent possible. Small businesses that are created by our region’s entrepreneurs will generate a substantial amount of jobs held by residents. Commercial fishing operations are considered small businesses and are major seasonal employers in our region. BBEDC’s Technical Assistance Program promotes solid business planning and development whether it is a commercial fishing operation or other small business enterprise. Through a partnership with the Alaska Business Development Center, resident entrepreneurs, community (city, tribe, etc.) administrators, nonprofit administrators, and private citizens are provided with professional business advisors and consultants. The business consultants will counsel, coach, mentor and assist clients in business or project planning including feasibility assessments, business planning, identifying financial needs, identifying sources for financial assistance, loan applications, grant applications, preparing and understanding financial reports and other tasks upon request. In 2018, over $59,000.00 of consulting time was invested in resident entrepreneurs. Over 300 hours of consultant time was devoted specifically to Permit Loan Program and Vessel Acquisition Program participants for application assessment, annual business planning and counseling.

Grant Writing Assistance ProgramBristol Bay communities rely heavily on grants for the development and replacement of critical community infrastructure as well as economic development to create income generating opportunities for residents. Some communities have limited staff and experience in seeking grant opportunities or preparing proposals. BBEDC’s Grant Writing Assistance Program provides the services of selected grant-writing consultants for funding searches, proposal pre-development, pre-applications, proposal development, proposal follow-up and proposal review. In 2018, $35,948.42 was invested in professional preparation of proposals submitted by BBEDC communities to granting agencies.

Economic Development Program Services continued on next page

BBEDCBBEDCBristol Bay EconomicDevelopment Corporation

Grant E-NewsletterBBEDC celebrated the 10th year of publication of the quarterly Funding Opportunities E-Newsletter in 2018. The e-newsletter is produced by Agnew::Beck Consulting as a part of the contract with BBEDC for grant writing assistance. The newsletter provides information about current government and private grants with an emphasis on resources of interest to BBEDC communities. The E-newsletter is distributed to all BBEDC communities through direct email and posted on the BBEDC website www.bbedc.com.



Economic Development Program ServicesTax Preparation ProgramTo encourage the filing of accurate and current year tax returns, BBEDC offers the Tax Preparation Program. In 2018, participating tax preparers, William Scheid and Jerry Liboff produced 1,091 tax returns for a total cost savings to residents of $136,853.16. The program paid approved tax preparers up to $125.00 toward the preparation of individual resident tax returns. Many BBEDC residents are commercial fishers or generate income through related small business activities and various forms of financial assistance for resident fishers and small businesses such as loans and grants which are dependent upon being able to produce copies of current tax returns.

Jerry Liboff,Tax PreparerJerry Liboff operates Jerry’s Tax Service from his home office in Dillingham and has participated as an approved tax preparer in the BBEDC Tax Preparation Program since its inception in 2004. Jerry first came to Bristol Bay in 1969 as a Vista volunteer and was drawn to commercial fishing within the first year. Jerry often found himself assisting neighbors, friends, other residents, fishers and small businesses with a variety of paperwork, sometimes including tax returns. The demand for his assistance grew until it eventually bloomed into a business enterprise and he became an IRS certified tax preparer. Jerry learned to speak Yupik and combines that with his experience as a small business owner and a Bristol Bay commercial fisherman of 40+ years to serve his clients; fishers and non-fishers alike. Jerry is often a willing volunteer presenter at workshops and forums providing information and education to resident commercial fishers.

Personal Finance/Education ProgramPersonal credit and debt are the greatest challenges for residents that want to obtain a limited entry permit or fishing vessel. BBEDC partners with the non-profit firm, Money Management International (MMI), to act as a resource and to provide a regular presence in the region. The staff of MMI counsel residents on a one-on-one basis, lead workshops that provide financial education to groups of residents and students on an informal basis and register individual clients for debt repayment plans. MMI staff are present in the region on a quarterly basis and are otherwise available via telephone and e-mail. BBEDC invested $16,689.19 in this program in 2018. Most notable is that more than half of MMI staff time was devoted to Personal Financial Counseling for Emergency Transfer Grant recipients and credit review/counseling for potential Permit Loan Program and Vessel Acquisition Program candidates.



Regional Fisheries4E CDQ Halibut FisheryThe 2018 Bristol Bay CDQ resident halibut harvest was 58,862 lbs., which was 12% less than the total catch in 2017. Twenty-one fishers participated in the halibut fishery, four of which were new entrants eager to earn some extra income before the salmon season. Roughly 66% of the total harvest was delivered to processors in Togiak with a price range from $3.75 to $4.25 per pound. The remaining 34% of the catch was landed in the Dillingham and Naknek ports, where local consumers could purchase the delectable fish.

Pounds of Halibut Harvested

0

50,000

100,000

150,000

200,000

250,000

20002001

20022003

20042005

20062007

20082009

20102011

20122013

20142015

20162017

2018

Pounds Harvested Linear (Pounds Harvested)

Kyle Zimin, resident of South Naknek, showing someof his gear and freshly caught halibut.



Regional FisheriesQuality Improvement ProductsEx-vessel values of Bristol Bay salmon saw an average base price of $1.26 per pound in 2018, and fishers who chilled their catch received additional chilling bonuses. On top of that, there were record-breaking harvests and an incredible abundance of salmon that returned home to their pristine habitat of Bristol Bay. Outstanding chilling efforts across the bay have helped increase and maintain the ex-vessel value of Bristol Bay salmon, and with any luck, will continue to do so. BBEDC spent $44,799.07 to supply thirty resident fishers with insulated fish totes, slush bags, flexible sheet foam insulation, and padded deck mats. In the years to come, BBEDC will continue to be a strong advocate of chilling at the point of harvest to increase the ex-vessel value among Bristol Bay’s fishing fleet.

Pre-Season AdvanceEvery successful Bristol Bay fishing operation requires nets, insurance, groceries, fuel, permit renewals, and more. BBEDC’s Pre-Season Advance Program can help with just that. Resident fishers who hold a commercial fishing permit and need assistance getting ready for the season can qualify for a loan to help with pre-season expenses. In 2018, forty-three fishers received $211,975.00 in advances to help them effectively participate in the fishery.

Naknek7%

Newhalen10%

Dillingham67%

King Salmon7%

Iliamna6%

Egegik 3%

Quality Improvement ProductsParticipants by Community

Naknek7%

Aleknagik 5%

Dillingham49%

King Salmon 2%Ekwok 2%

Pilot Point5%

Togiak 23%

Pre-Season Advance ProgramParticipants by Community

Manokotak 5%

Twin Hills 2%



Regional FisheriesRSW Purchase ProgramCommercial fishers that utilize RSW systems to chill their catch relish the financial benefits through chilling bonuses, but also enjoy the freedom of becoming more self-sufficient as they do not have to rely on the supply of ice. Specifically, fishers do not have to purchase or locate ice before each opener, which can add some extra zzzz’s of rest. However, the additional bonuses come at a hefty price, as the cost to purchase and install an RSW unit can range from $30,000.00 to $80,000.00. In an attempt to help fishers install RSW units, BBEDC offers financial assistance of up to $22,000.00 to CDQ resident fishers for the purchase of RSW systems. In 2018, ten residents were awarded a total of $219,512.50.

Clint Reigh of Dillingham utilized the RSW Purchase Program in conjunction with the Vessel Upgrade Grant to improve his hydraulic system and pay for the installation costs.


Dillingham40%

Aleknagik 30%Manokotak 10%

Naknek 10%

Clarks Point10%

RSW Purchase ProgramCommunity Participation


Regional FisheriesRSW Support ProgramEach year, BBEDC offers grants of up to $1,000.00 to help fishers start-up, maintain, and winterize their RSW systems. Having the peace of mind that an RSW system is running properly before the season and correctly stored away before winter can be a big factor after making such a large investment. RSW Support funds can also help cover travel costs for fishers who need to fly a technician to their community to service a unit. In 2018, seventeen residents utilized the program for a total of $11,961.82.

Vessel Upgrade Grant ProgramIt is critical for fishers to maintain their vessels to preserve the longevity of their boats, and to effectively participate in the Bristol Bay commercial salmon fishery. The Vessel Upgrade Grant provides a unique opportunity for watershed resident fishers to maintain, repair, and modernize their fishing vessels. BBEDC offers grants to drift vessel owners up to $35,000.00 and set net operators up to $17,500.00. In 2018, BBEDC spent roughly $1.05 million dollars to assist sixty-eight watershed resident fishers.

Naknek 12%

Manokotak 6%

King Salmon 6%

Port Heiden 6%

Dillingham70%

RSW Support ProgramParticipants by Community

Igiugig resident, Randolph Alvarez, utilized the Vessel Upgrade Grant for a variety of improvements that include; installing a bow thruster, an anchor winch, upgrading the hydraulic system, and modifying the hatch covers.



Fisheries Habitat Protection GrantIn an attempt to protect the habitat that sustains the Bristol Bay fisheries, specifically from large scale metallic mining, BBEDC granted approximately $150,000.00 to United Tribes of Bristol Bay and Nunamta Aulukestai. These funds supported their efforts to mobilize local residents, technical experts, and tribal governments to engage with federal and state agencies throughout the permitting process of the proposed Pebble Mine. This is one of the most concerning issues currently facing watershed residents, and it remains a top priority for BBEDC to help ensure our fisheries remain vibrant.


Regional FisheriesIn-Season Emergency ProvisionThe In-Season Emergency Provision offers grants of up to $17,500.00 for set gillnet operations, and up to $35,000.00 for drift boat operations. This funding is shared with the Vessel Upgrade Grant Program, so applicants who have not received the full amount through the Vessel Upgrade Grant are eligible. In 2018, one resident fisher experienced a catastrophic engine/drive train specific breakdown that nearly ended his season. BBEDC spent $10,555.83 through the In-Season Emergency Provision to help that captain get back on the fish. Helping resident fishers in their time of need has been a worthwhile and meaningful experience for BBEDC.

Dillingham

Aleknagik

Manokotak

Naknek

Clarks Point

Vessel Upgrade / In-Season Emergency ProvisionCommunity Participation

Egegik

IgiugigIliamna

King SalmonKoliganek

New Stuyahok

Newhalen

NondaltonPilot PointPort Heiden

TogiakTwin Hills

Dillingham Harbor


Regional FisheriesBristol Bay Ice, LLC (BBIce)In an effort to improve the quality of salmon harvested and the ex-vessel value, BBEDC’s two ice barges, the Bristol Maid and the Bristol Lady distributed ice to Bristol Bay fishers.With 2018’s historic Bristol Bay salmon run, BBIce’s mission “To increase the quality and value of the catch for watershed residents through chilling,” was a top priority. BBIce is a subsidiary of BBEDC, and is proud to have assisted the fleet in their chilling efforts during this abundant year.

Stationed off Clarks Point in 2018, the Bristol Maid sold 869,730 lbs. of ice to Bristol Bay fishers, a 23% increase from 2017.

The Bristol Lady, stationed in the Naknek/Kvichak district in 2018, sold a total of 749,300 lbs. of ice to Bristol Bay fishers, a significant decrease from 2017 sales. The decrease can be partially attributed to the Nushagak and Wood Rivers’ exceptionally large run, prompting traditional Naknek/Kvichak fishers to try their luck in the Nushagak district.

Photo courtesy of Jennifer Bennis


Ice Sales - Bristol Maid

YEAR20082009201020112012201320142015201620172018

936,9251,092,450

833,556685,550526,500239,100

1,048,670904,520775,360707,420869,730

LBS. SOLD

Ice Sales - Bristol Lady

YEAR20082009201020112012201320142015201620172018

1,030,0001,372,0001,062,000

417,550551,300370,000

1,281,5001,249,5001,382,9401,184,500

749,300

LBS. SOLD


EducationSalmon CampIn 2018, BBEDC held three sessions of Salmon Camp, encompassing grades 6-12 over the course of three weeks. The participating students were able to literally and figuratively dip their toes into a variety of cultural, economic, and scientific activities focused on salmon and their significance to the region.

continued on next page



EducationSalmon Camp (continued)Younger students collected juvenile salmon from spawning creeks, canned salmon, tied flies, counted salmon from the Wood River towers, learned traditional Yupik woodcarving techniques, and dabbled in Dutch oven cooking, among more traditional camp activities like sport fishing and canoeing.

Advanced students attended the camp for college credit, learning how to collect a variety of water quality measurements, dissecting and comparing the anatomy of different salmonids, assessing rocks for signs of ancient geologic activity, and tackling the intricacies of scientific presentations.

In total, fifteen students participated in Salmon Camp this year, fourteen from Dillingham and one from Egegik.

Salmon Camp Director - Chuy Ramirez“I started working at Salmon Camp in 2012 after just a year of moving to Dillingham from San Jose, CA. 2018 is my 7th year as Camp Director, and I’ve enjoyed every year. It’s always an adventure! Working for the Dillingham City School District, I continually see former campers throughout the school year, and they start asking me in the spring if I am doing Salmon Camp again. That is what gets me to return, the feeling they’ve enjoyed themselves and would like me back. Every year I learn something different and get to meet new kids. Even though I’ve done it for so long, I am still astounded at what an amazing place we live in… the land, the wildlife, the salmon. Here’s to future years and adventures that await.” – Chuy Ramirez

Fisheries Education InitiativeLike other career pathways, BBEDC recognizes the need to expose the young people of the region to the fishing career opportunities through short-term intensive classes in hopes of stimulating future interest in the fisheries. Unlike previous generations, many of the youth in our communities do not have the opportunity to learn fishing through family operations due to the loss of local limited entry permits. Some haven’t grown up fishing like many did years ago and therefore lack the experience to step into crewmember jobs. In 2018, the Bristol Bay Borough District offered fisheries-related classes like Maritime Basic Training through the Regional Career and Technical Education Program and BBEDC provided $57,337.45 to support these classes.

Students exploring the ins and outs of a commercial fishing vessel and a locally made slush bag.



EducationNursing Program SupportThe Bristol Bay Campus partners with the University of Alaska Anchorage School of Nursing to make it possible for students in Bristol Bay to earn an AAS Degree in nursing. Instructional methods include distance delivered lectures by interactive video from instructors across the state. A local nursing instructor teaches hands-on skills learning in the Nursing Lab and sets up opportunities for clinical experience off site. In 2018, BBEDC provided $10,000.00 to the Bristol Bay Campus to support the local nursing program.

Angel Venua, AAS Nursing

Program Recipients Mathew and Jesse Rogers“Matt and I are working full-time as accountants. BBEDC has great programs and incentives for watershed residents, but not enough people take advantage of those programs. Dillingham is an awesome place to live with all the outdoor and year-round subsistence activities. We finished our third year in the workforce as of this summer, Matt is currently the longest-tenured employee at BBAHC finance department, and I have been at SWRSD business office since January 2018. We were both able to obtain our bachelor degrees with minimal debt thanks to the generosity of BBEDC and other local and institutional scholarships and grants. For student debt we did incur, BBEDC’s Student Loan Forgiveness Program is helping us pay that off. Matt and I are appreciative of the educational/employment opportunities in the region thanks to organizations like BBEDC and grateful to be recipients of the Harvey Samuelsen Scholarship Trust from 2012-2016, and currently the Student Loan Forgiveness Program.” – Jesse Rogers

Student Loan ForgivenessTuition and fees at public and private schools rose at roughly three times the rate of inflation between 2007 and 2018, according to a College Board survey, forcing some resident students to take out student loans to pay for education expenses. The BBEDC Student Loan Forgiveness Program provides up to $20,000.00 of student loan repayment over five years to residents who return to a CDQ community and obtain full-time employment after receiving their degree. During 2018, seven residents (Dillingham-5, Naknek-1, Twin Hills- 1) participated in the program with $20,614.45 paid towards student loan debt.


Matt and Jesse Rogers, HSST recipients and Student Loan Forgiveness Program participants.


EducationAdult Basic Education/GED Program SupportBBEDC contributed $40,000.00 to the Bristol Bay Campus Adult Education Program whose primary objective is to provide support to adults who need to strengthen and develop academic skills that relate directly to employment opportunities. In addition, they provide instruction to those individuals seeking a GED diploma. In 2018, the program had ten GED graduates.

GED Graduates Veronica Phillips ..................................... Dillingham Andrew Radmer ..................................... Dillingham Rachel Hanson ................................ New Stuyahok Amara Decker .......................................... Dillingham Charity Andrews ..............................................Togiak Almarae Naomoff .................................. Dillingham Alec Naomoff ........................................... Dillingham Frank Nicholson ...................................... Dillingham Jacinto George ........................................ Dillingham Josh Ingram ............................................... Dillingham

GED Graduate, Frank Nicholson


ScholarshipsHarvey Samuelsen Scholarship TrustThere were 72 scholarships awarded during 2018 totaling $445,126.66. Students that applied for scholarships for the full academic year received $7,000.00 each to assist with their academic expenses. Other awards were pro-rated depending on the academic term. Many students have shared their appreciation for this contribution to their education. After receiving their scholarship award notifications, Trey Swain, a college Freshman from King Salmon and fellow HSST Scholarship recipient, Kaila Coopchiak of Togiak, wrote thank you letters that included the following:

HSST Recipient, Trey Swain“I am so grateful to have received the Harvey Samuelsen Trust Scholarship from BBEDC. It will make such a difference because I no longer need to be as concerned with the looming debt the cost of education creates. The scholarship will help me pay for necessities such as books and tuition. It gives me the opportunity to pursue a degree I love and will use for the rest of my life without as many financial worries. You have made an impact on my future. I thank you sincerely.”

HSST Graduate, Kaila Coopchiak“I want to give my sincerest thank you for financially supporting me throughout my time at Alaska Christian College (ACC). This scholarship has played a huge part in helping me reach my goal of graduating college and for that I am eternally grateful! As of December 2018, I am a graduate with an Associates of Arts in Christian Ministry and currently employed at ACC. Again, a big thank you for giving me the opportunity to become a first-generation college graduate!”


Scholarships

S. Naknek - 1Port Heiden - 1

Togiak - 4

Naknek - 10

Manokotak - 4

King Salmon - 6

Ekwok - 1

Dillingham - 45

# Scholarships by Community

2018-2019 HSST GraduatesAssociate of ArtsKaila Coopchiak Christian Ministry Alaska Christian College Togiak

Associate of Applied ScienceChelsea Ayers Nursing U of A Anchorage DillinghamAngeli Venua Nursing U of A Anchorage DillinghamCaden Smeaton Construction Technology U of A Southeast Dillingham

Associate of ScienceSydney Dray Recreation & Fitness Haskell Indian Nations Dillingham Management University

Bachelor of ArtsKvichak Aspelund Justice U of A Anchorage Naknek Minor SociologyAshley Bales Early Childhood Education U of A Anchorage NaknekMiles King Inclusive Elementary University of Colorado Naknek Education Colorado SpringsAnthony Reynolds Liberal Arts Wyoming Catholic Dillingham College

Bachelor of Business AdministrationCole Schlagel Business Administration Colorado Mesa University Dillingham Management

Bachelor of ScienceAmelia Giordano Biological Sciences U of A Anchorage DillinghamMarshall Johnson Mathematics U of A Southeast DillinghamCody Miller Wildlife and Wetlands Brigham Young University Dillingham Conservation

Master of ScienceGabriel Fulton Civil Engineering U of A Fairbanks Dillingham

Juris DoctorFrancesca Sutton Law Western Michigan University Togiak Thomas M. Cooley Law School


2018 GraduatesMaster of EducationJosh Bullock Educational Leadership U of A Southeast DillinghamDiana Schollmeier Educational Leadership U of A Anchorage Dillingham

Master of Business AdministrationRachel Bobbitt Business Administration U of A Fairbanks Dillingham

Associate of Applied ScienceGermaine Eningowak Applied Business UAF Bristol Bay Campus Togiak

High School Dual Credit Classes Funded • Business • Justice • Writing • Library Science • Math • Computer Science • Healthcare

Naknek 14%Togiak 6% Aleknagik 3%

Manokotak 5%

King Salmon 7%

Ekwok 1%

Dillingham64%

College Development FundParticipants by Community

College Development FundSome of our residents pursue higher education and earn degrees while taking distance delivered courses on a part-time basis. These students stay in their community, can maintain employment, and eventually become more equipped to qualify for positions requiring advanced employment skills and education. High school students who utilize the program for dual credit get a jump start on their college degree before graduating from high school. In 2018, BBEDC provided $113,812.52 in College Development Fund scholarships to 86 residents.


Scholarships


Program RecipientsMark SchwantesMark graduated from the Bristol Bay Campus after taking the first full- semester welding class in the spring of 2018. Mark immediately applied this new knowledge and flush-decked his boat, the F/V Yukon Jerry, before the commercial fishing season. The following winter he took a welding job with Northline Seafoods, gaining experience and learning fabrication. Mark now operates a local welding business, employing others in the Bristol Bay region and providing more potential for year-round welding services locally.

Ann Cornell-Forthofer“Successful professionals regularly sharpen their skills. My job is multi-faceted and changing. New citizen demands, legal changes and new technologies increase the pace of my work, requiring me to plan and expedite many tasks at once. Often I am a citizen’s first point of contact, and my council members count on me to make sure public meetings, records, elections and other special projects operate smoothly. The job of Clerk/Administrator is not getting any easier and I understand the importance of keeping abreast of the latest issues and trends. The best way to do just that is by investing in continuing education and attending the Northwest Clerks Institute. This educational opportunity provides a comprehensive curriculum in public administration management, technical skills, and professional/personal development. It has made a difference in my organization, career and future. I would like to thank BBEDC and the Naknek Native Village Council for giving me the opportunity to attend, I am very grateful.” – Ann Cornell-Forthofer, Lead Tribal Administrator/ BBEDC Liaison - Naknek Native Village Council

TrainingVocational/Technical Training ProgramBuilding a qualified local workforce is critical when it comes to building a healthy economy for the region. Many residents either earn new credentials or gain additional job skills necessary to advance within the companies they are employed.

In 2018, BBEDC provided $227,952.00 in training scholarships for 97 residents seeking to improve and enhance their work skills for employment opportunities.


Naknek 5

Manokotak 7

Levelock 2

Port Heiden 4Togiak 9

Dillingham 57

Twin Hills 2 Aleknagik 3Clarks Point 1

King Salmon 6

Ekwok 1

Vocational Training Participants by Community


TrainingCommunity/Group Training ProgramThe Community/Group Training Program is offered to BBEDC village, city and borough governments and accredited or known training providers to provide training opportunities that are fisheries related or deemed capacity building for BBEDC CDQ residents. Many of the trainings supported through the program occur within the local communities. During 2018, BBEDC supported 23 trainings for a total of $136,445.05.

Additionally, the program sponsored two regional career fairs held in the Dillingham and Bristol Bay schools. This is a great opportunity for students to gain exposure to a variety of career pathways and meet with representatives from post-secondary institutions. The cost to support the two fairs totaled $5,788.33.

Dillingham Career Fair • 188 High School/Middle School Students • 33 Elementary Students • 38 Vendors

Naknek Career Fair • 58 High School/Middle School Students • 36 Elementary Students • 39 Vendors • 19 Community Members

020406080

100120140160

Dillingham

Aleknag

ik

EgegikEkw

okKing Salm

onLe

velock

Manoko

takNak

nekS. N

aknek

Twin H

ills

Togiak

Port H

eiden

Other

Watersh

ed

5 1 1 3 251019 20 14 19 22

94

137

Community / Group TrainingParticipants by Community

Bristol Bay Campus Bear Safety Class



TrainingSouthwest Alaska Vocational Education Center(SAVEC) TrainingsSAVEC was provided funding for 14 classes with 193 participants totaling $197,723.97.The training facility has the unique ability to coordinate and provide short intensive training for the residents of Bristol Bay by offering a full dormitory to house residents flying in from neighboring communities. By having this training center located within our CDQ area, BBEDC can support classes closer to home for many residents.

SAVEC hosted RSW Class (funded by BBEDC Regional Fisheries Program)

SAVEC hosted Quickbooks Class (EET funded. Speaker of the House Bryce Edgmon

was visiting)


AFTER

01020304050607080

DillinghamEkw

okKing Salm

onLe

velock

Manoko

takNak

nekPilo

t Point

S. Nak

nek

Twin H

ills

Togiak

Other

Watersh

ed

6 6 6 62

1421

1 17

5667

SAVEC TrainingParticipants by Community


InternshipsYouth Internship ProgramThe BBEDC Youth Internship Program provides much more than a paycheck. A first job can give a boost in self-confidence, help one to envision a career path, and experiences that will help inspire accomplishments. This program would not be possible without the partnerships with employers who work with youth to identify job skills necessary for the position and provide constructive feedback for intern growth. During 2018, twenty youth ages 14-17, gained valuable experience while earning $74,551.94 in wages and benefits.

2018 Youth Intern Employers by CommunityAleknagikAleknagik Traditional Council (2)

DillinghamCity of Dillingham (4)Curyung Tribal CouncilDillingham City Schools - KDLG (2)SAFEUSFW

EgegikCity of Egegik

King SalmonKing Salmon Ground, LLC (2)

ManokotakCity of Manokotak

NaknekCamai Community Health CenterD&D Restaurant

Port HeidenNative Village of Port Heiden

TogiakCity of TogiakTraditional Council of Togiak

Dillingham Public Library“We are thankful for the great staff that we have to serve our patrons. Lotus Becker was hired as a part-time Library Aide/Clerk I. She works everyday after school at the library, as well as Saturday. Both she and Lane Ito are community success stories, as they had been BBEDC youth interns for the past two summers. They each now are 14-hour-a-week employees with the City of Dillingham. We are thankful to BBEDC for providing this training and job opportunity for many in our community.”

Sonja Marx, Librarian – City of Dillingham

In-Region Internship ProgramThere is value to participating in internships. Not only does it expose someone to a career that matches their academic and personal interests, it provides job skills gained through practical experience that will make them more valuable to future employers. The duration of internships can be arranged for up to six months with the possibility of an advanced opportunity for an additional six months. BBEDC hired seven residents for various In-Region Internships within four of BBEDC’s CDQ communities in 2018. While honing their skills, interns earned $63,032.36 in wages and benefits.

Wayne Kapotak, Land Use Agent Intern– Choggiung, Ltd.

Lotus Becker youth intern



EmploymentBering Sea EmploymentFor those interested, the Bering Sea can provide many employment opportunities through BBEDC seafood partners both on and offshore throughout the year. Watershed residents employed by these companies during the winter months, can still participate in the Bristol Bay salmon fishery during the summer, making it an attractive opportunity. The jobs can be difficult with long hours but can result in a very lucrative payday. In 2018, our partners reported that earnings for the nine residents hired were $283,803.32. Of the nine, three hailed from Togiak and six from Manokotak. Five residents were also provided with pre-employment screening and travel assistance totaling $3,742.35.

Seasonal Employment Opportunties ProgramDuring 2018, BBEDC supported 38 employment positions within 14 of our CDQ communities. Businesses and organizations have an opportunity to apply for entry-level employment positions throughout the year to help them gear up for the busy summer season or to tackle a special project that requires extra hands. Twenty-two businesses and organizations participated in the program during the year, and the residents employed earned $294,436.24 in wages and benefits.

0

5

10

15

20

2

Aleknagik Clarks Point Dillingham Egegik EkukNaknekManokotak

Ugashik LevelockTwin Hills

King SalmonSouth Naknek

EkwokPort Heiden

12

2 31 1 1 1

6 5

1 1 1 1

Seasonal Employment OpportunitiesPositions by Community

Kellen Halford was hired as a painter forthe Dillingham City School District


Bristol Bay Science & Research Institute (BBSRI)BBSRI is a non-profit research entity and subsidiary of BBEDC that has been involved in local fisheries research and monitoring over the past 19 years.

BBSRI continued an active role in 2018 conducting fishery research, monitoring, and policy analyses associated with the Bristol Bay fisheries. BBSRI’s leadership helped mitigate the impacts of the state’s fiscal crisis on fisheries management in the Bay by organizing and financially supporting the Bristol Bay Fisheries Collaborative (BBFC). BBSRI also operated the Port Moller Test Fishery and continued its salmon smolt enumeration program which identified ongoing changes in smolt size and age, and smolt abundance from nursery lakes in the Kvichak and Ugashik watersheds.

Port Moller Test FisheryThis was the 15th year that BBSRI operated the Port Moller Test Fishery (PMTF) providing in-season information about the destination and abundance of the annual sockeye salmon run for fishery managers, fishers, and processors. In 2018, we worked with industry deploying a second vessel for eight days (F/V Icelander) to capture fish well offshore of the traditional test fishing stations. The work of the Icelander helped to detect the extremely large (32 million fish) run to the Nushagak District. Subsequent single-boat effort was influenced by the results from the Icelander and assisted in identifying an extremely large tail to the run in July.

Overall, the test fishery accurately predicted a late, and what turned out to be the largest salmon return to Bristol Bay since records began in 1893 (62.3 million fish). Our work helped managers and industry prosecute a fishery that captured the second highest harvest of sockeye salmon on record (41.3 million fish), while allowing 21 million fish to reach the spawning grounds.

Crews from the two Port Moller Test Boats prepare to transfer data and genetic samples from the F/V Icelander to the R/V Pandalus 150 miles offshore in the Bering Sea.

Photo courtesy of David Knight


Bristol Bay Science & Research Institute (BBSRI)Bristol Bay Fisheries Collaborative (BBFC)

BBSRI worked with the fishing industry, local boroughs, cities, and villages in 2018 to raise nearly $750,000.00 to support a world-class management program of Bristol Bay salmon. BBSRI matched contributions from organizations (and individuals) on a 1:1 basis and through the process of defining a world-class management program, sent a clear message to the State Legislature and Administration of the value of good fisheries management in Bristol Bay. A four-person technical team from BBSRI and ADF&G defines the scope of what keeps the fishery management world-class. BBFC funds supported nine assessment projects used by fishery managers and eliminated the unpopular State-sponsored fishing to raise money for management (i.e., “cost recovery fishing”). BBFC is a good example of BBSRI’s innovative leadership taking on a difficult challenge facing the fishery and the Bristol Bay region. More details are available at the BBFC webpage: www.bbsri.org/bbfc.

Chart comparing the daily Port Moller Test Fishery indexes to the inshore sockeye salmon catches by fishing district in 2018. The test fishery detected the largest ever Nushagak District run and predicted a large and late tail to the run driven largely by the Naknek-Kvichak district. This information assisted managers, fishermen, and processors to capitalize and capture the second highest harvest on record since 1893 (41.3 million fish).

4

3

2

1

0

80

100

60

40

20

0

Run timing = 3 – 4 days lateTotal run = 62 M

Catc

h +

Esca

pem

ent (

mill

ions

)

Dai

ly P

MTF

Cat

ch In

dex

Nushagak/Wood

Naknek/Kvichak

Egegik

Ugashik

Stns2-18 Index

Stns2-10 Index

6/10

6/12

6/14

6/16

6/18

6/20

6/22

6/24

6/26

6/28

6/30

7/02

7/04

7/06

7/08

7/10

7/12

7/14

7/16

7/18

7/20

7/22

7/24

7/26


CDQ/IFQ Harvesting ActivityBBEDC generates royalties by contracting with harvesting vessels and processors for a share of the revenue generated in the harvest and sale of CDQ and IFQ allocations. These royalties help support BBEDC programs. Additionally, contractual arrangements with these harvesters and processors typically provide employment opportunities for local residents.

Each year BBEDC receives CDQ allocations of Bering Sea and Aleutian Islands groundfish, crab and halibut. The diverse allocation portfolio provides for the harvest of valuable target species, which requires both the allocation of target and non-target species; target species (e.g. pollock and Pacific cod) are commercially valuable and specifically targeted by harvesters while non-target species are generally incidentally harvested in pursuit of the target species. Allocations of some species, like Pacific cod, have a large component dedicated to the directed (target) fishery but require some portion to be used for bycatch (incidental harvest) in other targets. Maximizing the benefits of these allocations requires a balance of target fisheries and gear types.

BBEDC Harvesting Partners for 2018CDQ Fishery Gear Type Harvesting VesselsPollock pelagic trawl Arctic Fjord | Arctic StormPacific cod hook and line Bristol Leader | Northern LeaderAtka mackerel pelagic trawl Seafreeze Alaska | Alaska ProviderPacific Ocean perch pelagic trawl Seafreeze AlaskaYellowfin sole bottom trawl Seafreeze Alaska | Seafreeze America | Alaska Endeavor, Alaska Beauty | Alaska Knight | Alaska Provider | LegacyRock sole bottom trawl Seafreeze Alaska | Seafreeze America | Alaska Endeavor, Alaska Beauty | Alaska Knight | Alaska Provider | LegacyFlathead sole bottom trawl Seafreeze Alaska | Seafreeze America | Alaska Endeavor | Alaska Beauty | Alaska Knight | Alaska Provider | LegacyBS sablefish pots Western MarinerAI sablefish hook and line Blue Ballard4D halibut hook and line Allstar

CDQ CrabEAI golden king crab pots Erla-NBB red king crab pots Aleutian Mariner | Bristol MarinerOpilio crab pots Aleutian Mariner | Bristol Mariner Tanner crab pots Western Mariner

IFQ Fishery3A halibut hook and line Bold Pacific | Compromise3B halibut hook and line Allstar | Bold Pacific | Katie Jean4B halibut hook and line Deliverance | Selah4D halibut hook and line Soul MateAI sablefish hook and line N/A BS sablefish pots Western MarinerCG sablefish hook and line Allstar | Resurrection | Soul Mate | Southern SeasWG sablefish hook and line Allstar | Deliverance | RoyalPacific cod hook and line Alaskan Leader | Bristol Leader | Northern Leader

IFQ CrabBB red king crab pots Alaska Spirit | Arctic Mariner | Nordic Mariner | Pacific Mariner Opilio crab pots Arctic Mariner | Cascade Mariner | Nordic Mariner, Western MarinerTanner crab pots Western Mariner


CDQ/IFQ Harvesting Activity

Mill

ions

of D

olla

rs

Years

CDQ Royalties

2 0

4 6 8

10 12 14 16 18

1992 93 94 95 96 97 98 99 2000 01 02 03 04 05 06 08 09 2010 11 12 13 14 15 16 17 201807

Mill

ions

of D

olla

rs

Years

IFQ Royalties

1992 93 94 95 96 97 98 99 2000 01 02 03 04 05 06 08 09 2010 11 12 13 14 15 16 17 201807 0

.5

1.0

1.5

2.0

2.5

3.0

3.5

Perc

ent H

arve

st

IFQ Target Species

Percent of IFQ Target Harvested, 2018

0%

20%

40%

60%

80%

100%

120%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

CDQ Target Species

Percent of CDQ Target Harvested, 2018

Perc

ent H

arve

st



Organizational Investment Chart


Bristol Bay Economic Development Corporation501(c)(4) Non Profit Corporation

Bristol Bay Ice, LLC100%Arctic Wind Fisheries

Permits and associatedrights

Distribution DivisionRenton, Portland, Dallas,Astoria, Spokane, Helena,

Boise, Salt Lake

Harvey SamuelsenScholarship Trust

501 (c) (3), 100%

Bristol Bay Science andResearch Institute

501 (c) (3), 100%

Legend (as of 12/31/18)

Crab OperationsPollock OperationsLongline Operations(Cod, Halibut, Sablefish)

Salmon & Value-addedOperationsIn-Region OperationsNon-Profit AffiliatesChanges in 2018

Ocean BeautySeafoods, LLC

50%

AK/WA DivisionNaknek, Kodiak, Alitak,

Cordova, Excursion Inlet, Petersburg, Seattle

Specialty (Smoked) Div.Monroe, WA

OB Fishmeal LLC24.7% interest in Kodiak FM

Bristol Mariner, LLC125’ crab and cod

catcher vessel & IFQs45%

Arctic Mariner, LLC125’ crab and cod


Nordic Mariner, LLC121’ crab and cod


Northern Mariner, LLCCrab IFQs andpot cod license

45%

Western Mariner, LLC108’ crab catcher

vessel & IFQs45%

Cascade Mariner, LLC101’ crab/pot blackcodcatcher vessel & IFQs

50%

Western Mariner, LLC108’ crab/pot black

cod catcher vessel & IFQs50%

Pacific Mariner, LLC125’ crab and cod


Crab Quota SharesBBR, BSS, SMB, EBT

and WBT100%

Alaskan Mariner, LLCCrab IFQs

50%

Aleutian Mariner, LLC118’ crab & cod


Dona MartitaFisheries, LLC

50%

Neahkahnie, LLC110’ offshore pollock

catcher vessel, AFA, hake rights

Sea Storm, LP125’ offshore pollock catcher

vessel, AFA, hake rights

Arctic StormManagement Group, LLC

Fjord Seafoods, LLCpollock block sales

Arctic Storm, Inc.334’ offshore pollock surimiand fillet, YFS trawler, AFA

rights, hake mothership

Arctic Fjord, Inc.275’ offshore pollock surimi

Alaskan Defender172’ inshore pollock

catcher vessel, AFA rights

Bering Defender174’ inshore pollock


Defender (new)170’ inshore pollock


Defender (old)195’ inshore pollock

catcher vessel

Morning Star148’ inshore pollock


Alaskan LeaderFisheries, LLCManagement Co.

50%

Alaskan LeaderSeafoods, LLC

Sales Co.50%

Alaskan LeaderVessel, LLC

150’ freezer longliner50%

Halibut IFQsSablefish IFQs

100%

Bering LeaderFisheries, LLC


Bristol LeaderFisheries, LLC


KodiakFisheries, LLC

LLG2112 BSAI FLLCodLicense

LLG 4004 WGOA FLLCod Licenses 100%

Northern Leader Fisheries, LLC


Washington LandmarkHoldings, LLC

Martinac Shipyard50%

Aleutian LeaderFisheries, LLC

50%

A-Tech Services, LLCMetal Fabrication

50%

Premium Acquatics, LLC

~8.125 %

Arctic Storm Holding Co.18.3 %

Changes for 2018• ALF sold the Martinac Shipyard.• Ocean Beauty moved their hot smoked and Seattle distribution operation to a new location in Renton, WA. The corporate office remains at Ewing Street in Seattle.• DMFLLC invested in startup Premium Aquatics, LLC which will build and operate a kelp and oyster farm in SE.


What Keeps Us Afloat


This fleet of vessels serves our entire BBEDCfamily, ensuring its prosperity now and in the future.

F/V Bering Leader

F/V Bristol Leader F/V Neahkahnie

F/ V Aleutian Mariner, Arctic Mariner, Western Mariner

F/V Morning Star

F/V Arctic Fjord

F/V Nordic Mariner

F/V Alaskan Defender

F/V Northern Leader

F/V Arctic Storm

F/ V Pacific Mariner

F/V Bering Defender F/V Bristol Mariner

F/V Alaskan Leader

F/V Cascade Mariner

F/V Sea Storm


Consolidated Statements of Financial Position


Bristol Bay Economic Development Corporation and SubsidiariesConsolidated Statements of Financial Position - December 31, 2018and 2017 2018 2017Assets: Current assets: Cash and cash equivalents $27,128,367 $20,175,890 Investments in marketable securities 662,105 337,430 Trade receivables, net 7,456,169 6,265,284 Income taxes receivable 52,970 609,834 Insurance claim receivable – 464,344 Accrued interest 178,126 315,850 Prepaid expenses and other assets 156,321 1,260,601

Total current assets 35,634,058 29,429,233

Long-term assets: Investments in marketable securities 94,178,654 101,374,335 Investments in unconsolidated affiliates 110,189,539 107,194,139 Investment in individual fishing quotas 26,967,693 27,147,325 Investment in fishing rights 2,650,000 2,650,000 Deferred taxes 132,268 215,170 Property, plant and equipment, net 1,672,722 1,775,184

Total long-term assets 235,790,876 240,356,153 Total assets $271,424.934 $269,785,386

Liabilities and Net Assets: Current liabilities: Accounts payable and accrued expenses $1,828,630 $1,595,463 Income taxes payable 2,617 260 Deferred revenue 137,000 198,427 Community & business development fund awards 16,620,472 17,579,981

Total current liabilities 18,588,719 19,374,131

Total liabilities 18,588,719 19,374,131

Net assets Without donor restrictions: Undesignated 252,836,215 250,411,255 Total net assets 252,836,215 250,411,255

Commitments and contingencies

Total liabilities and net assets $271,424,934 $269,785,386

Excerpt of Financial Statements Audited by KPMG, LLP


Consolidated Statements of Activities


Bristol Bay Economic Development Corporation and SubsidiariesConsolidated Statements of Activities - Years Ended December 31, 2018 and 2017 2018 2017Changes in net assets without donor restrictions: Revenues, gains and losses: Program revenue $15,451,189 $13,894,290 Investment return, net (6,799,629) 9,703,090 IFQ investment income 1,952,743 2,454,543 Fishing rights investment income 77,675 322,266 Grant revenue 26,641 185,658 Equity in earnings of unconsolidated affiliates 9,862,580 10,488,592 Other 1,037,487 1,406,238

Total revenues, gains, and losses without 21,608,686 38,454,677 donor restrictions Expenses: Program 16,465,554 23,706,081 Finance and administration 2,718,172 2,783,340

Total expenses 19,183,726 26,489,421 Increase in net assets without donor restrictions 2,424,960 11,965,256

Net assets without donor restrictionsat beginning of year 250,411,255 238,445,999

Net assets without donor restrictionsat end of year $252,836,215 $250,411,255


1992 93 94 95 96 97 98 99 2000 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 2018

50

0

100

150

200

250

300Total Net Assets without Donor Restrictions

Mill

ions

of D

olla

rs

Years


Schedule of Finance and Administration Expenses



Bristol Bay Economic Development Corporation and SubsidiariesSchedule of Finance and Administration ExpensesYears Ended December 31, 2018 and 2017 2018 2017

Salaries $1,089,964 $1,013,857Benefits and payroll taxes 393,326 434,378Professional fees 210,109 198,347Travel and per diem 193,830 221,418Audit, tax and accounting fees 187,143 207,111Board fees 170,250 150,581Depreciation and amortization 86,041 69,299Insurance 66,379 60,885Communications 50,023 49,491Office expense 49,898 46,728Utilities 38,949 34,328Legal fees 36,334 107,986Information systems 31,017 27,487Donations and contributions 22,073 41,529Janitorial 17,743 17,904Licenses and registration 11,792 3,369Advertising 11,615 13,397Staff training 9,937 8,509Rent and storage fees 7,360 2,395Postage 6,568 4,727Repairs and maintenance 4,189 6,380Dues and subscriptions 4,097 12,797Bank fees 3,290 5,058Vehicle expense 916 1,648Board development - 9,449Loss on disposition of assets - 7,642Miscellaneous 36,924 50,991Administrative overhead (21,595) (24,351)

$2,718,172 $2,783,340


Transparency Report


Director Compensation PolicyBBEDC compensates its Directors who attend board and committee meetings with a meeting fee and travel/per diem. BBEDC Directors receive a flat $500.00 per day meeting fee. BBEDC Directors are appointed by community resolution for up to a three year term and may be replaced in accordance with BBEDC By-Laws.

Related Party TransactionsBBEDC reports any transactions over the amount of $20,000.00 with any director or their family members. In 2018, there was one related party who participated in BBEDC’s Vessel Upgrade Grant Program and received benefits in excess of the $20,000.00 threshold. Justin Alto, Board Member, qualified and received program benefits of $35,000.00.

There was one related party who participated in BBEDC’s RSW Purchase Program and received benefits in excess of the $20,000.00 threshold. Henry Wassily, Sr., brother-in-law of Board Member Betty Gardiner, qualified and received program benefits of $22,000.00.

Legal Proceedings Involving DirectorsBBEDC reports any pending litigation between itself and any Directors. There is no such litigation for 2018.

Auditor RelationshipBBEDC has had no disagreements with their auditor, KPMG, LLP, during the past two years. In addition to audit services, KPMG, LLP also provides tax and tax consulting services to BBEDC.

CommitteesThe BBEDC Board of Directors has the authority to create and dissolve committees and appoint persons to serve on committees. The Finance & Budget Committee is responsible for the budget, financial statement review, and monitoring of the performance of the investment funds. The Finance & Budget Committee met on January 15, February 12, March 7, April 11, May 15 and 30, September 4 and 5, October 4, and November 7. Current members include: Robert Heyano, Chair; Hattie Albecker; Fred Angasan, Sr.; Gerda Kosbruk and Victor Seybert. The Audit Committee is responsible for the oversight of the annual audit and other issues governing corporate governance, disclosure, and responsibility. The Audit Committee met on September 5. Current members include: Robin Samuelsen, Chair and Mark Angasan.

Transparency Report

40

Compensation for Board of Directors | 2018 $221,500.002018 Professional Fees

Legal Fees 107,276.00Lobbying 122,297.17Consultants 498,626.61

Total Professional Fees: $ 728,199.78

Accounting Fees $ 206,014.50Audit 45.4% 93,634.50 Tax Prep 30.8% 63,450.00Consulting 23.8% 48,930.00

224,404.9725,500.00

249,904.97

177,267.91

144,739.36

120,449.71

120,193.76

Top 5 Employee Compensation | 2018

Name/TitleNorman Van Vactor, President/CEO Bonus Dillingham, AK

Paul Peyton, Seafood Industry Investment O�cer Greenbank, WA

Michael Link, BBSRI Executive Director Anchorage, AK

Helen Smeaton, Chief Operating O�cer Dillingham, AK

Staci Fieser, Chief Financial O�cer Palmer, AK

“Providing Opportunities... Accept the Challenge” “Providing Opportunities - Accept the Challenge”

Massa Pat, Economic Dev. /Brokerage [email protected]

Gary Cline, Regional Fisheries Director [email protected]

Anthony Zoch, Regional Fisheries [email protected]

Pearl Strub, Education, E/T [email protected]

Laticia Swift, Education, E/T [email protected]

Meg Schroeder, Accounting [email protected]

Marilyn Wilson, Accounting Technician [email protected]

Heather Nudlash, Administrative Assistant [email protected]

Marie Tinker, [email protected]

Norman Van Vactor, President/[email protected]

Helen Smeaton, Chief Operating O�[email protected]

Staci Fieser, Chief Financial O�[email protected]

Paul Peyton, Seafood Investment O�[email protected]

Chris Napoli, Chief Administrative O�[email protected]

Keggie Tubbs, Finance O�[email protected]

Matthew Robinson, Fisheries Quota [email protected]

Michael Link, BBSRI Executive [email protected]

Alice Ruby, Economic Dev./Brokerage [email protected]

BBEDC STAFF MEMBERS

BBEDC COMMITTEE MEMBERSBBEDC BOARD MEMBERSName Title CommunityH. Robin Samuelsen, Jr. Chairman DillinghamFred T. Angasan, Sr. Vice Chairman South NaknekRobert Heyano Director/Treasurer EkukHattie Albecker Director/Secretary UgashikLouie Alakayak, Sr. Director ManokotakMargie Aloysius Director AleknagikJustin Alto Director EgegikMark Angasan Director King SalmonJimmy Coopchiak Director TogiakPaul Hansen, Sr. Director NaknekKenneth Jensen Director EkwokMary Ann K. Johnson Director Portage CreekGerda Kosbruk Director Port HeidenVictor Seybert Director Pilot PointFritz Sharp Director Twin HillsAlexander Tallekpalek Director LevelockHarry Wassily, Sr. Director Clarks Point

Executive Committee H. Robin Samuelsen, Jr., ChairFred T. Angasan, Sr., Vice-ChairHattie Albecker, SecretaryRobert Heyano, TreasurerVictor SeybertGerda KosbrukMary Ann K. Johnson

Finance & Budget CommitteeRobert Heyano, ChairVictor SeybertFred T. Angasan, Sr.Hattie AlbeckerGerda Kosbruk

Audit CommitteeH. Robin Samuelsen, Jr., ChairMark Angasan

Regional Fisheries CommitteeRobert Heyano, ChairVictor SeybertMark AngasanHattie AlbeckerJimmy CoopchiakFred T. Angasan, Sr.

E&T/Education CommitteeMary Ann K. Johnson, ChairLouie Alakayak, Sr.Fritz SharpKenneth JensenMargie Aloysius

Policy CommitteeFred T. Angasan, Sr., ChairMark AngasanFritz SharpMargie Aloysius

Economic Development/BrokerageCommitteeExecutive Committee

Permit & Vessel Loan CommitteeRobert Heyano, ChairHattie AlbeckerLouie Alakayak, Sr.Alexander TallekpalekMark Angasan

Bristol Bay Science and Research InstituteExecutive Committee

Harvey Samuelsen Scholarship TrusteesMary Ann K. Johnson, PresidentFritz Sharp, Vice-PresidentKenneth Jensen, SecretaryGerda Kosbruk, TreasurerPaul Hansen, Sr.

Bristol Bay Ice, LLCH. Robin Samuelsen, Jr., ChairRobert HeyanoHattie AlbeckerMark Angasan

BBEDCP. O. Box 1464Dillingham, AK 99576

PRSRT STDUS Postage

PAIDAnchorage, AK

Permit #69

Bristol Bay Economic Development Corporation

Front cover photo courtesy of Misty Nielsen | Back cover courtesy of Tiera Schroeder.

P.O. Box 1464 Dillingham, AK 99576 | www.bbedc.com

2 0 1 8 A N N U A L R E P O R T

2018 annual r eport

Documents