2000 Annual Report

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A

Statement of

Strength

2000 Year in Review Coastal Villages Region Fund

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Scammon Bay Hooper Bay Chevak Newtok Mekoryuk

Chefornak Kipnuk

Oscarville Tununak Napakiak Toksook Bay Napaskiak Nightmute Tuntutuliak Kongiganak Kwigillingok

Eek Quinhagak

Goodnews Bay Platinum

Coastal Villages Region Fund is a community development quota organization, 20 communities strong.

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A Statement of Strength Coastal Villages Region Fund is a thriving Community Development Quota organization.

We are one of six western Alaska groups guaranteed a share of the rich Bering Sea fishery through the unique CDQ program.

CVRF is a membership organization, twenty communities strong.

We are paid a royalty fee for our quota shares by industry partners who harvest the fish.

Royalty fees and our own purposeful investments fund the many economic and human resource development programs being delivered today in the CVRF region.

Extracting a benefit from abundant offshore fisheries for nearby coastal communities is the heart and soul of the CDQ program.

Elsie Chanar, CVS, Toksook Bay

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Dedication The 2000 Year in Review is dedicated to the people of the Coastal Villages region who have been patient with and supportive of the Coastal Villages Region Fund Board and staff as we worked hard to become a key player in the Bering Sea fisheries.

This important goal has now been achieved. Your support helped make it happen. CVRF’s new prominence in the industry, investment success, and investment protection is all for the single purpose of benefiting our membership.

Thank you for letting CVRF be your CDQ program representative.

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© Dean Swope

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© Dean Swope

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2000 Coastal Villages Region Fund Board of Directors Back row, left to right: Clifford Kaganak, Sr., Oscar Wassillie, Paul Tulik, Simeon John, Abraham David, Edgar Hoelscher, Peter Joseph, Peter Boyscout, Ignati Jacob, Fritz Willie; Front row, left to right: Fred K. Phillip, Peter John, Henry Williams, Carl Dock, Wassilie Bavilla, Andy Charlie, Sr., Steven White, Charlie Chingliak, John Phillip, Sr. (Not pictured, Carl Maxie, Sr.)

Our Purpose To be successful in the fishing industry so that we can promote economic development in the CVRF region.

Our Vision To be a key player in the Bering Sea fisheries and human resource development so that there is sustainable economic and commercial development of the local resources in the CVRF region.

How We Get There • 4-SITE Program • Bering Sea fisheries • Joint ventures with fishing companies • Community development projects

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soul Soul of Success

In the context of an organization, "soul" is something to which we contribute our own meaning. Meaning created through our values. The most successful strategies are essentially sets of values. At Coastal Villages, our core values provide an ethical foundation for the work of the organization. They provide direction and inspire commitment.

Our Core Values Positive Leadership To be successful, Coastal Villages' leadership has faced two difficult tasks. First, in order for the organization to thrive, CV has had to manage both stability and change. To know when to reinforce the routine and when to encourage innovation.

Š Dean Swope

Second, employees want to be both effective as individuals and to find meaning in their lives at work. Our positive leadership has navigated Coastal Villages through competing priorities and accelerated expectations to achieve organizational viability and encourage employee contribution.

Top left: Simeon John (Toksook Bay), CVRF Board Member Top right: Wassilie Bavilla (Quinhagak), CVRF Board Member Bottom Right: J.B. Crow (Bethel)

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soul of su Maximum Return on Allocation This is the starting point. The challenge of balancing our efforts in which neither the individual village nor the corporation dominates, and which both the village and the organization view themselves as part of a bigger whole. It is all about being responsible for profitable relationships within industry partnerships, as well as accountable for visible benefits to the communities.

Protecting Our Way of Life Our culture helps us to understand and appreciate the past and has the ability to bring meaning to the present. It reminds us of what is essential and relevant based on traditional values.

Top: At sea processor working on Pollock fillets.

Bottom: Warren Jones, CVS Salmon Operations Manager and John Henry (Quinhagak)

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success Teamwork Meeting today’s challenges cannot be done by any one person single-handedly. Coastal Villages works to develop a community of people who willingly provide their talents and insights to address increasingly complex issues.

Respect for and Support of the People in the Region The importance of the work we do is only as great as our connection to our members. The level of commitment and loyalty of all the people in our villages in large part determines the effectiveness of our strategy. Answers reside in all of us, to benefit all of us.

Top: CVRF Board Members Simeon John (Toksook Bay) and Howard Amos (Mekoryuk) with Mary Oslin (Anchorage), CVRF Staff Bottom: Jolene John (Anchorage) CVRF Staff with Steven White and Simeon John, CVRF Board Members

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heart The Heart of the Matter

Fishing Investments Profit CVRF

CVRF’s bold investment in American Seafoods, LP completed in January, 2000 was a major accomplishment this year, making it possible to achieve our goal of becoming a key player in the Bering Sea fisheries.

Provisions in the American Fisheries Act required foreign ownership to divest itself of 75% of American Seafoods, opening the door for Coastal Villages to first purchase 20% of American Seafoods and another 2% in October. American Seafoods is the largest offshore fisheries company in the Bering Sea, and so at the 22% level, Coastal Villages became the CDQ group with the largest stake in the Bering Sea fisheries.

The important American Seafoods investment met another CVRF goal of bringing the value from the Bering Sea fisheries into the CVRF region. Over time, distributions from American Seafoods operations will provide funding to create a self-sustaining fisheries economy in CVRF member communities.

Top left: Eric Phillip (Kongiganak) Top right: Pollock Processor Bottom : American Seafoods Company Factory Trawler

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heart of th Other Fisheries CVRF’s other Bering Sea coastal, nearshore, and in-river fisheries are at a mix of strong and weak levels. Bering Sea pollock has shown steady growth, and harvests are up. But the Kuskokwim River salmon fishery experienced another disastrous season, and summer 2000 harvests were down.

In the fisheries that are strong, the industry is doing well. American Seafoods, which harvests pollock and is owned 22% by Coastal Villages, had a very successful year. Earnings were greater than forecasted. For Pacific cod, Aleutian Islands sablefish, and opilio and red king crab, our partners had good, if not record breaking seasons. In Kuskokwim Bay, the salmon fishery experienced an average year,

Top: Adrian Kailukiak (Toksook Bay) CVS Halibut Plant Middle: Surimi being off loaded Bottom: John Sharp (Quinhagak)

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he matter but ex-vessel prices to fishermen went lower as competition from foreign farm raised salmon continued to eat into traditional Alaskan salmon markets. Halibut remains stable, and strong markets supported the highest prices paid to fishermen in recent years.

CVRF keeps up with new developments that may threaten its success in the fishing industry. In the pollock fishery, threats include the protection of Steller sea lion critical habitat, bycatch of salmon in the trawl fisheries; and the surimi market in Japan. In the crab fishery, the Alaska Department of Fish and Game has warned that two major fisheries – Bristol Bay red king crab and opilio tanner crab – will be shut down due to low abundance.

Top: Billy Lincoln Jr., CVS Toksook Bay Plant Bottom: Bob Smith, CVS Quinhagak Salmon Plant

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heart

In 2000, CVRF and partners successfully kept up with the changes. Industry adjusted to new fishing areas with less fishing time, and switched to different products for different markets. In Japan, a slowed economy reduced demand for surimi, but in Europe, the foot and mouth disease problem caused an increased demand for pollock, striking an important balance.

Just as CVRF responds to changes in the fishing industry, we also respond to changing circumstances within the region. For salmon, this means developing niche markets and value-added products. We cannot rely on the traditional Japanese market to survive. For halibut, farmed halibut is coming, and while not yet a problem, it could be. To survive, and succeed in the fishing industry, we must look to the future and make needed adjustments today.

Top: Gregory Tom, CVS Chefornak Plant Bottom: Salmon Fishermen delivering to CVS tender

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mind The Plan in Mind

Plans Guide CVRF

A Community Development Plan (CDP) is CVRF’s workplan for each CDQ allocation period. It is a forward-looking document, prepared one year for use the next year, and describes what the company plans to do. The project and program ideas come from board members, member communities and the staff. A CDP requires several months to prepare and it is a unique feature of CDQ organizations.

CVRF’s 2000 CDP called for fishing industry investments that were satisfied with the well-reported purchase of American Seafoods, the Ocean Prowler, and investments in our halibut and salmon plants.

In 2000, Ciunerkam Tangruarutii (CT)- “Looking Towards the Future”- a CVRF led planning effort, produced ideas for the 2001-02 CDP. Included are eleven programs and twenty projects, covering current and proposed larger investments in the fishing industry, human resources programs, outreach, CDQ quota and contract management, and administration.

The 2001-02 CDP also supports infrastructure development, more employment opportunities in the region, starting up new businesses, and entering into agency partnerships to get more benefit to communities than can be obtained from CVRF alone.

Top: CVRF Leadership Team April 2000 Bottom : John Amik and CVRF Board member Carl Dock (Kipnuk)

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the plan in A new loan program for fishermen is a noteworthy project listed in the 2001 - 02 CDP. It is an example of how CVRF is using its investments in the fishing industry, along with its own community grant program, to provide direct benefits to member communities.

Ciunerkam Tangruarutii – “Looking Towards the Future” In 2000, CVRF’s major, long term planning initiative, Ciunerkam Tangruarutii (CT), "Looking Towards the Future," identified local priorities in our twenty member communities. Our effort was strengthened by the participation of local steering committees.

Top: Phillip Kusayak (Newtok) Bottom: speaking, CVRF Board member John Phillip Sr. (Kongiganak); seated, Julius Pleasant (Bethel) and CVRF Board member Steven White (Eek)

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in mind At well-attended meetings, concerned residents shared their ideas of improving community life. This grassroots input, along with that of local leaders, identified priorities as they relate to community and economic development, health, safety, employment, training, elders, youth and technology.

Later, at a large Funding Summit event, top community priorities were detailed in fundseeking proposals, and possible funding sources were identified.

CT started with a plan. Its purpose, strategy, structure, people, process and timeline of events was developed by CVRF staff. There was a high expectation for community accountability and participation.

Bottom: Mike "Jack" Stewart (Goodnews Bay)

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mind

Project sustainability was also an issue.

CVRF staff prepared materials, traveled in teams to talk about the CDQ program, led visioning sessions, and listened.

CT shows CVRF’s commitment to provide benefits from the CDQ program to its members, to obtain community direction on its programs and priorities, and to have the management structure in place to be able to do a credible job.

Top: Patrick Cleveland (Eek) Bottom: Oscar Evon (Kwigillingok) center, with Funding Summit Participants

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body Our Body of Work

Subsidiaries and 4-SITE Are Active

Two thousand was a successful year for CVRF’s five subsidiary companies which own all, or a portion of, Coastal Villages investments in the fishing industry.

In 2000, three new investments in American Seafoods, the Ocean Prowler and the Arolik River Guiding Service proved highly successful, returning cash distributions to the subsidiary based upon operations.

Three existing businesses, Coastal Villages Seafoods (CVS), the Silver Spray, and the Ocean Harvester, also had successful years. Of the five subsidiaries, CVS has the most visibility within the CVRF region, as it hires employees, and buys and processes fish locally.

Coastal Villages Seafoods (CVS) CVS operates salmon and halibut plants in five communities. In 2000, the newest halibut plant opened in Chefornak, joining Toksook Bay, Tununak, and Mekoryuk. A halibut operation was also added to the plant in Quinhagak. The halibut plants processed the entire Area 4E halibut quota of 273,000 pounds, nearly 100,000 pounds over what had ever been caught and processed before. In Quinhagak, CVS purchased over 1.7 million pounds of salmon and processed over 500,000 pounds of it on site. The remainder was shipped to Bethel for custom processing. Upgrades at the Quinhagak plant will allow future processing of the entire catch.

Top: Staff model CVS style Bottom: Value adding at CVS Quinhagak Plant

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our body o Coastal Villages Pollock (CVP)

CVP owns Coastal Villages’ 22% interest in American Seafoods. CVP was created in January 2000 to manage the American Seafoods investment and monitor its operations.

Coastal Villages Longline (CVL) CVL was established in 1997 to own Coastal Villages’ interest in the longline vessel, the Ocean Harvester. CVL owns 45% of this catcher boat, which harvests halibut and sablefish in the Gulf of Alaska and Bering Sea. In 2000, CVL purchased a 20% interest in a second longline vessel, the Ocean Prowler.

This vessel fishes primarily for Pacific cod in the Bering Sea. In 2000, each vessel had successful fishing seasons.

Top: Ocean Harvester Bottom: Crab Pot Landing

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y of work Coastal Villages Angler (CVA)

CVA is a subsidiary created to own a 33% interest in the Arolik River Guiding Service.

Operation strengths are a managing partner with a long history in sport fish lodges and guiding, investment by the Quinhagak village corporation, and unparalleled sport fish values on the Arolik River. Remarkably, this business made a profit in 2000, its first year of operation.

Coastal Villages Crab (CVC) CVC owns a 50% interest in a crab vessel, the Silver Spray. The vessel also harvests Pacific cod using pots and processes the cod onboard.

CVC primarily monitors vessel operations and assists in recruiting crew members for the crab and cod fisheries. In 2000, the Silver Spray was profitable despite continued low abundance of crab.

Top: Bob Smith and John Henry ready to ship out product, at CVS, Quinhagak Bottom: Eric Phillip (Kongiganak) shows off catch

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our body o 4-SITE Makes a Difference

Investments in people continued in 2000, too. The 4-SITE program maintained service to our members as the centerpiece goal and delivered benefits and opportunities in key areas of scholarship, internship, training and employment.

Scholarship In 2000, the Louis Bunyan Memorial Scholarship (LBMS) committee awarded $62,716 to 39 students attending universities and vocational technical schools. More scholarships were awarded in 2000 as a result of an increase in applicants responding to additional outreach efforts promoting the LBMS. To show its commitment to education, the scholarship committee has increased the budget, and now offers funds at any time to those seeking a GED certificate through the University of Alaska - Fairbanks, Kuskokwim Campus. For other applicants, funding deadlines of May 31 and October 31 apply.

CVRF encourages those who have been, or are, residents of member communities to seek support from the LBMS for education. Your development efforts can lead to sustainable employment in the future.

Top: Caroline Nevak, (Toksook Bay) recent scholarship recipient for Graphic Design.

Bottom: Jimmy Larsen, Jr. (Chefornak) recent scholarship recipient for Aviation

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y of work Internship

An effective way to build work skills is through an internship. In 2000, CVRF placed interns in positions including: Human Resources and Rural Recruiter with American Seafoods; Administrative Assistant, Human Resources, and Personnel Assistant with Icicle Seafoods; Engineering and Deck Hand apprentice with Westward Seafoods; and Administrative Assistant in-house with CVRF. CVRF’s ability to offer an in-house internship at our Anchorage office is a new development in 2000, and speaks of our own growth and maturity. In the past, we sent interns to Seattle to work with partner companies.

Offering another choice improves our program, and allows CVRF to be more involved in an intern’s development and experience. We urge residents to start or continue their personal employment history with an internship.

Top: Desiree Moses (Toksook Bay/Anchorage) former Corporate Communications Intern Bottom: Mary Charlie-Smith (Toksook Bay/ Bethel) successful star of the 4-Site Program

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our body o Training

CVRF is committed to staff development and training in the workforce to meet a growing demand for employees created by our own business ventures. Training individuals for work within the region at CVRF subsidiary ventures is a positive undertaking. It boosts local employment and brings new skills into the region. In 2000, CVRF for the first time brought a group of key salmon and halibut plant workers into Anchorage for specialized production training.

CVRF promotes staff development to maximize internal talent in management and to assure top program delivery to our member communities. Staff development in 2000 included: alcohol awareness, drug screening, participation in regional economic development efforts, workforce investment, customer service representation, accounting procedures, and human resource management.

Top: Bernard Murran (Hooper Bay) early in CVRF career Bottom: CVS Quinhagak fish grading operation

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y of work Employment

CVRF’s Employment Department had a make-over during 2000, but our purpose of hiring people to work in the fishing industry remains unchanged. Gone are the coaches who shared scholarship, internship, training, and employment information. They were replaced by Rural Recruiters who focus on hiring seafood workers.

In 2000, CVRF helped 244 residents find work in the fishing industry. They earned $944,000 in wages. CVRF’s halibut and salmon plants have created new local employment opportunities, and we have noticed a growing trend of individuals choosing to work in the region, and not outside of it.

In 2000, Coaches and/or Rural Recruiters: attended LKSD’s Career Days and AFN’s Human Resources Job Fair; organized and held the 2nd Annual CVRF Recruitment Day; joined with the YK Delta Rapid Response Team; assisted with Ciunerkam Tangruarutii; and taught Junior Achievement classes.

Top: Jessica Bavilla and Tina Johnson – happy CVS, Quinhagak workers Bottom: Warren William George Jones, CVS Salmon Operations Manager checks shipout

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body

Community Economic Development Community economic development is an ongoing effort in the Coastal Villages region as we seek opportunities to improve the quality of life for the benefit of our members. We see the community helping itself, investing in itself, involving community interests founded on the development of a long-term plan and the commitment of community resources.

For this purpose, CVRF’s Economic Development Department concentrated in 2000 on completing the Chefornak Halibut Processing Plant, preparing the Scammon Bay Aluminum Welding Shop proposal, start-up of the value-added operation of Coastal Villages Seafoods, LLC, and the on-going development of the Regional Port and Kipnuk Processing Plant proposals.

Residents setting community priorities during Ciunerkam Tangruarutii process

These economic development initiatives were fueled by the energy, perserverance and the belief of many that they would lead to positive community growth. Throughout 2000, Coastal Villages and local residents worked to create the foundation of a common vision to improve the economies of families and their communities.

The core of our work comes to life when members unite to make development happen.

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spirit The Spirit of Community

Unity Through Common Purpose

CVRF seeks to create a sense of unity and connection, to bring many together for one purpose. How do we bring life to our common purpose? How do we harness the strengths and talents of our membership to work for the greater good of everyone?

In 2000, CVRF sought a place within each community to touch the lives of people by reawakening the human spirit and revitalizing the communities through communication, collaboration, and celebrations of unity.

Communication CVRF takes "talking the walk" very seriously. We find creative ways to exchange information about the industry, the work of our organization and the interests of our members. CVRF’s multi-media communication approach reaches out to draw into our circle of community a wide audience of residents, partners, and regional supporters.

We share ideas and activities through our quarterly newsletter, "Neqsurtet Nepiit.”

Included are topics such as CDQ allocation news, industry partnerships, village seafood plants, new in-region businesses and profiles of interns, apprentices, staff and Board members.

We sponsor and host a monthly television show on ARCS called “Alaska Rural Development 2000.”

Top left: CVRF Board Members John Phillip Sr., Steven White, Carl Dock, and Andy Charlie Sr. Top right: Colton and Tony Crow in high spirits Bottom: Students at a CT rally

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spirit of co It explores issues of regional concern and raises awareness on strategies being employed to address the challenges of rural development.

In 2000, some of our shows highlighted the regional strategic planning effort, a funding summit connecting communities with government and private funding sources, and a discussion of Best Practices in community-based economic and human resources development.

Collaboration CVRF strongly believes in creating partnerships as a vital force in the successful development of our region. There are new ideas about partnership and shared responsibility at the community level. It is an approach meant to support active, adaptive communities.

Top Left: Moses Tulim (Chevak) CVRF staff, Patrick Tall (Chevak), and Byron Ulak (Scammon Bay) CVRF staff Bottom: Bosco Olson, Myron Naneng, Ole Lake, and Edgar Hoelscher, representatives of Hooper Bay

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ommunity Ciunerkam Tangruarutii (CT)- “Looking Towards the Future" - was an extensive CVRF outreach initiative in 2000, and is a powerful model of partnership and collaboration. The initiative was conducted in collaboration with a local steering committee to integrate value identification, project planning and community involvement. It was pivotal in identifying the residents’ priority interests in six community development areas: employment, training and education; youth and elders; fisheries related projects; safety and health; and information technology. CVRF then facilitated a number of CT follow up activities (such as the funding summit, and regional port feasibility study) to maintain momentum for top community projects to move forward.

Top: Fred K. Phillip, 2000 CVRF Board of Directors President Bottom: Elementary students engaged in Junior Achievement activity

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spirit of co Other Regional Initiatives

CVRF participates as a representative on the Local Advisory Council of the Workforce Investment Board to identify employment, education, and training and economic development activities in the YK region.

AVCP and CVRF collaborate on a joint project to implement a community-based drug-screening program for CVRF and AVCP clients who are applying for positions in the fishing industry Department of Labor and CVRF’s employment staff work closely together to screen and refer candidates to potential employers.

Top: John Sharp (Quinhagak) Bottom: Louie Johnson (Quinhagak) assists new CVS employee

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ommunity CVRF staff is frequently asked to speak at DOL functions on the CVRF rural recruitment model and is working with the Office of the Commissioner on a strategic plan.

The YK school districts continue to work with CVRF to bring Junior Achievement of Alaska classes to our communities. Junior Achievement’s purpose is to educate and inspire young people to value free enterprise, business, and economics to improve the quality of their lives. In 2000, CVRF staff served as classroom consultants in nine member communities, touching the lives of hundreds of students.

CVRF is a key player and founding member of the regional leadership group guiding the design and development of the Yuut Elitnaurviat, "The Peoples’ Learning Center".

With the commitment of CVRF, regional non-profits, area school districts, the University of Alaska, and the regional health corporation, Yuut Elitnaurviat, will realize a vision of a regional alternative school and vocational training center.

Top: Cheryl Beaver and Stacy Atti feast on crab at CVRF potluck in Kwigillingok.

Bottom: CVRF Board member Peter Boyscout with fellow potluck guests.

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spirit

Celebrations Rituals of passage, celebrations of achievement, and ceremonies of healthy lifestyles are important threads that weave through the fiber of our communities – they intertwine the joys, sorrows and challenges of our lives to create a strong foundation of support, determination, and hope for a better future.

In 2000, CVRF joined with the communities to celebrate seasons, graduations, sobriety, and community partnership. We brought to the table our CDQ harvest of fish and crab and a commitment to support community projects and events that contribute to the well-being of our membership.

Top: Mrs. Atti volunteers at potluck Bottom: CVRF Board members John Phillip Sr. (Kongiganak) and Peter Joseph (Tuntutuliak) digging in at CVRF potluck

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strength Our Strength in Resources

Finances and People Shape CVRF’s Future Coastal Villages Region Fund is operating from a position of strength and diversity.

In recent years, our important asset base has consistently doubled. Consolidated assets show a steep climb on the growth curve, as shown below, and topped 26 million dollars at the end of 2000.

Coastal Villages sees many opportunities in the industry, and the asset base will continue to increase. However, such a significant doubling trend will be difficult to sustain as a growth objective. As the growth curve levels, the impressive asset foundation now in place will serve us well. It is an excellent basis for sustained economic activity to generate cash needed to benefit CVRF member communities.

In 2000, another major focus was on financial stability through diversification of CVRF’s income base.

30,000,000 25,000,000

Coastal Villages is moving away from total dependence on the CDQ royalty as a revenue source. Our dependence on the Bering Sea continues, but we are investing across the sectors, and we are generating value from different species, too.

20,000,000 15,000,000 10,000,000 5,000,000 0 1996

Top: Moses Tulim (Chevak) CVRF staff

1997

1998

1999

2000

Coastal Villages Region Fund Consolidated Assets

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strength in Halibut 0.57% Crab 7.75%

Pacific Cod Multispecies 5.60% 0.46% Sable Fish 0.18%

Pollock 85.44%

Diversification is evident within the species as well. An investment in the Pacific Cod industry has allowed CVRF to supplement pollock, the main sector. The crab sector also offers an opportunity away from pollock.

Coastal Villages Region Fund Consolidated 2000 Royalities

Equity in LLC 7% Seafood Sales 17%

In 1999, more than 80% of our consolidated revenue came from royalties. This was reduced to 73% in 2000. Fully 17% of our consolidated revenue came from seafood sales in 2000, up from just over 9% in 1999. Seven percent of Coastal Villages’ consolidated income in 2000 came from Bering Sea investments compared to 3% the year before.

Royalties 73%

The CVRF Board has worked tirelessly, and is enthusiastic about the financial growth of the company. The Board strongly supports a continued focus on financial stability that leads to sustainable development in our region.

1,200,000

Other 3%

1,000,000 800,000 600,000

Coastal Villages Region Fund Consolidated 2000 Total Revenue

400,000 200,000 0 (200,000)

1997

1998

1999

2000

Coastal Villages Region Fund Consolidated Net Earnings from Equity Investments 32

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n resources Human Talent

CVRF knows that an organization’s most valuable resource is its intellectual capital: its employees. It is committed employees, not projections and controls, that make an organization fast and flexible enough to maintain a competitive advantage.

In 2000, our employees met many challenges.

There were new expectations about the work, and new ways of working together. Coastal Villages sought to infuse the changes with staff’s personal initiative, creativity and compassion to develop a work environment that supports learning and leadership at all levels.

As the task before CVRF continues to magnify, we will continue to support our employees to develop their full talents. Talented individuals who give their all is Coastal Villages’ most valuable resource in its on-going discovery of greatness.

Top: Bernard Murran (Hooper Bay) CVRF staff Bottom: Jolene John (Anchorage) CVRF staff

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Understanding Our Place A Letter from the Executive Director Coastal Villages Region Fund’s consolidated net assets topped 26 million dollars by the end of fiscal 2000, an amount more than double that of the previous year.

Revenues increased by over 40% or more than 13.8 million dollars in 2000 compared to the 1999 level. By virtue of holding the largest control of quota by a CDQ in the Bering Sea and the best investments in the industry, the outlook for the coming year is even more exciting. Although it is easy to point to financial indicators to ground our picture of growth and maturity, there are other very important indicators that show our understanding of our place in the industry, the CDQ program, and the region.

During the year 2000, every sector in the Alaska fishing industry held on for dear life in the face of a finding of jeopardy for the western stock of Steller sea lions under the provisions of the Endangered Species Act. Although abundance of pollock and cod stocks were well documented at healthy levels, theories of nutritional deprivation and food depletion convinced a federal judge to issue an injunction containing fishing measures that dramatically hindered the harvest of these otherwise healthy stocks. In response, the National Marine Fisheries Service released a biological opinion that detailed measures that were even more restrictive on the fishing industry. While Coastal Villages also is concerned with the conservation of the sea lions, we firmly believe that the pollock and cod fisheries cannot be a significant cause of the decline. Seeing the impacts of the injunction and the biological opinion on the fishing industry, Coastal Villages, together with many other industry members, worked hard to obtain short-term relief while the scientists continue to study the problem. Coastal Villages was a key participant in obtaining the breathing room necessary to continue fishing, focusing not only on the protection of our own investments, but also the rest of the fishing interests in Alaska. Also at this time, the Governor of Alaska appointed Coastal Villages to his Sea Lion Restoration Team to further address the issue. This involvement with the other fishing interests led Coastal Villages to be a founding member of the new Marine Conservation Alliance, a group of fishing interests agreeing to work together as one strong voice, rather than be only one of many arguing about what should be done to address this important conservation issue. We understand our place in this political arena both now and in the future.

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During a recent Coastal Villages Board meeting, comments by several Board Members reflect the trusting relationship between Board and the staff, but more importantly, an understanding of the industry and the region. One gentleman, during a discussion of a lucrative investment, reminded his fellow directors that if Coastal Villages did not seize the opportunity, others would.

"Someone is going to make money.” Another gentleman observed that the rate of return of a potential investment could be high enough to overcome the lack of employment opportunities in the sector. "There are a lot of ways that it can indirectly benefit our region here,” he said. Steven White, our director from Eek, summarized the layers of regulation, the sector in question, the status of the negotiations, and how "this investment can bring funds to our program with a low risk to our people and with low cost to this company." He demonstrates a complete understanding of the process of investing for the benefit of our communities. Several visioning sessions have facilitated the Coastal Villages Board’s understanding of our place in the fishing industry.

They value the continued monitoring of our current partnerships, but also value the careful fit of new partnerships into our investment mix.

As the largest producer of salmon and halibut in western Alaska, our involvement in the region as an investor and employer has brought us to the table with the region’s largest entities. Coastal Villages has a balanced approach to the industry and to the region that has led to an effective connection between the two. We will continue to develop that understanding of our place in the region’s economy for the season that we are planning for, and many seasons to come.

The meshing of old ideas to new creative ideas provides Coastal Villages the unique ability to utilize our position in the industry to bring benefits back to our communities. The staff and Board of Coastal Villages Region Fund have come a long way in a short time, but we understand our place in the two worlds in which we operate. I consider it an honor to work for people who direct me based on an experienced understanding of our place in the process of bringing benefits to our communities.

C. Morgan Crow Executive Director 2000 Year in Review – A Statement of Strength

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2001 CVRF Board of Directors Simeon John, President Toksook Bay

Jolene Nukusuk Hooper Bay

Howard Amos, Vice-President Mekoryuk

John Phillip Sr. Kongiganak

Clifford Kaganak Sr., Secretary Scammon Bay

Fred Phillip Kwigillingok

Wassilie Bavilla, Treasurer Quinhagak

Helen Kaganak Napaskiak

Carl Dock, At Large Executive Board Kipnuk

Peter John Newtok

Fritz Willie, At Large Executive Board Napakiak

Paul Tulik Nightmute

Steven White, At Large Executive Board Eek

Vacant Oscarville

Oscar Wassillie Chefornak

Henry Williams Platinum

Peter Boyscout Chevak

Peter Joseph Tuntutuliak

Mike “Jack” Stewart Goodnews Bay

Andy Charlie Tununak

Others who served on the board in 2000 included: Ignati Jacob- Oscarville, Charlie Chingliak – Goodnews Bay, Edward Fox – Platinum, Edgar Hoelscher- Hooper Bay, Carl Maxie, Sr.- Napaskiak, Abraham David - Mekoryuk

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CVRF Offices Corporate Headquarters 711 H Street, Suite 200 Anchorage, AK 99501 907.278.5151 phone 907.278.5150 fax

Hooper Bay P.O. Box 289 Hooper Bay, AK 99604 907.758.4330 phone 907.758.4331 fax

Bethel BNC Complex, Suite 113 P.O. Box 1166 Bethel, AK 99559 907.543.3813 phone 907.543.3814 fax

Scammon Bay P.O. Box 101 Scammon Bay, AK 99662 907.558.5523 phone 907.558.5524 fax

Chevak P.O. Box 109 Chevak, AK 99563 907.858.7250 phone 907.858.7692 fax Mekoryuk P.O. Box 16 Mekoryuk, AK 99630 907.827.8141 phone 907.827.8142 fax

Juneau 204 N. Franklin Street, Suite 1 Juneau, AK 99801 907.586.2360 phone 907.586.2331 fax

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Coastal Villages Region Fund 711 H Street, Suite 200 Anchorage, AK 99501