2002 Annual Report

Page 1



PURPOSE To be successful in the fishing industry so that we can promote economic development in the CVRF Region.


Message from the President


Message from the Executive Director


Strategic Initiatives


Coastal Villages Seafoods


Map of Communities


Coastal Villages Companies


Coastal Villages Programs


Community Outreach Plan


2002 Community Outreach Efforts


2002 Highlights


2002 Financial Overview


CVRF Board of Directors


CVRF Staff

Coastal Villages Region Fund is a Community Development Quota (CDQ) organization with 20 member communities from Scammon Bay to Platinum. CVRF’s fisheries resources, which are allocated by the Magnuson-Stevens Act, are a share of the rich Bering Sea fishery.

C O R E VA LU E S From our history to date, and from the commitments that we all share now about the future, we have defined the values that should guide all of our activities and staff in the years to come. They are listed in order of importance. These are our core values: ~ Maximum return on allocation ~ Positive leadership ~ Respect for and support of the people in our Region ~ Teamwork ~ Protecting our way of life OUR VISION Become a key player in the Bering Sea Fisheries and human resource development so there is sustainable economic and commercial development of the local resources in the CVRF Region.

Coastal Villages Region Fund Investing in Our Communities

In 2002, Coastal Villages Region Fund was busy investing in our fisheries resources to benefit our most important resource… our people. Coastal Villages Region Fund is dedicated to serving our 20 member community’s economic development needs. 2002 was another successful year for our company. Net assets were up 10% from the previous year, our investments yielded high returns, and two new halibut plants were completed in Kipnuk and Hooper Bay. In 2002, CVRF and its subsidiaries directly employed 300 of our region residents and injected millions of dollars into its member communities.


We have 20 voting Board members proudly representing each community in important business discussions. The Board’s support is truly the backbone of Coastal Villages and their collective wisdom is the light that guides us. I want to personally thank each and every Board member for their hard work. The management team at Coastal Villages should also be commended for their fine work. In 2002, they received the highest score on the State’s scorecard of all CDQ groups for management effectiveness as well as the highest overall score. Congratulations to Morgen Crow and the rest of the management team.


But by far, the group I am most proud of is our residents. They have shown great support for our programs as witnessed by the hundreds who showed up to be part of the grand openings for our new halibut plants in Kipnuk and Hooper Bay. Many of our communities have waited 10 years to see the benefits that the CDQ program can provide. We truly appreciate both the support and patience our member communities have shown since the inception of this program in 1992. The company has learned from its mistakes from the early years when Coastal Villages Region Fund was known as the Coastal Villages Fishing Cooperative (CVFC). Since reorganizing as CVRF, the turnaround in the company has been truly amazing. The communities in Coastal Villages Region Fund are now the largest shareholder in the most productive company in the Bering Sea. CVRF is generating the financial strength to make a difference in our communities. Coastal Villages will be looking for community support to embark on an ambitious development plan that includes dozens of projects in the next several years, ranging from a fish processing plant to a fishery support center. We look forward to working with all of the communities to help make this happen.

Howard Amos, President

Real community development, at its core, has one ultimate outcome – the hope that our young people feel as a result. This hope is created by new opportunities to earn an honest day’s pay for an honest day’s work. This hope is sustained by sound investments into the Bering Sea, a well-managed resource of vast proportions that is becoming the economic engine for western Alaska. The idea has taken root in each of our communities that real, sustainable economic activity is possible. It is now an expectation of the community development quota (CDQ) program. One of our partners reminded me recently about the perceived benefits to the region from a company the size of Coastal Villages. Coastal Villages is the majority shareholder of American Seafoods, owner of the largest fleet of at-sea processors in the Bering Sea pollock fishery, and one of the top seafood producers in the country. 2002 was a year of unprecedented growth as we increased our ownership in American Seafoods, purchased additional interests in longliners, and made plans to further diversify our holdings in the Pacific cod and crab sectors.


Coastal Villages continues to balance the need to continue to expand our investments in the resources of the Bering Sea with the needs in our communities for economic activity and development of fisheries-related infrastructure. As we continue to report our financial growth back to our member communities, expectations to deliver the benefits of the program back to the region have matched that growth.


What is the future of community and economic development activities in our region? Ideally, the answer to this question is “WHATEVER THE COMMUNITIES WANT!” CDQ operations have been largely limited to fisheries related operations by State and federal regulations. As these regulations are gradually relaxed to include additional types of economic development, our investment parameters are expanding to meet the needs of our communities. Soon, Coastal Villages will be allowed to invest in enterprises outside of the Bering Sea and be subjected to the same risks and rewards that all investors in America face. Allowable investments in non-fisheries related economic development (NFRED) operations have already been approved and will soon be underway. Hope in our youth began when our recruiters made the rounds and posted announcements for job opportunities in the Bering Sea. Hope grew when we posted announcements for job opportunities in local Coastal Villages fishing operations. In 2002, after construction of new processing facilities, the first real economic development in the region in decades, hope has become a driving force that will guide the company into the future. We will continue forward with that hope in mind.

Morgen Crow, Executive Director



The CDQ Program Beginning in 1992, the Community Development Quota (CDQ) program was awarded 7.5% of the Bering Sea Pollock harvest (about 225 million pounds annually) for direct allocation to disadvantaged coastal communities in Western Alaska. In 1996, the CDQ program was granted in perpetuity under the Magnuson-Stevens Act authorized by the U.S. Congress. It also expanded the CDQ program to include a percentage of Total Allowable Catch (TAC) of the Bering Sea/Aleutian Island (BS/AI) groundfish and crab species into the CDQ allocations. The CDQ program gets 7.5% of most multi-species and crab fisheries in the BS/AI region. In 1998, the American Fisheries Act (AFA) increased the Pollock quota to 10% “off the top� of the Bering Sea/Aleutian Island TAC. The CDQ communities near the Bering Sea coastline comprise one of the most economically depressed areas in the United States. A major goal of the CDQ program is to allow these communities to accumulate sufficient capital from fishing activities in the Bering Sea to generate sustainable long-term fishery-related local economic activity. The CDQ program has given western Alaskan communities the ability to invest in the Bering Sea industry and to pursue many fisheries-related projects, including vessel acquisitions, community-based economic development projects, employment and training programs.

COASTAL VILLAGES SEAFOODS (CVS) In 2002, CVS purchased approximately 1,500,000 pounds of halibut and salmon from local fishermen. 445 halibut and salmon fishermen received over $480,000 dollars for their catch. CVS also sponsored a herring program in conjunction with NorQuest and Icicle Seafoods that provided a market for over 191 fishermen in 5 herring districts. If it had not been for CVS’s efforts in the five herring districts, it is highly likely that a herring fishery would have been non-existent in 2002. In addition, CVS employed 301 people during 2002. Over $1,1,00,000 was paid in wages by CVS, nearly all of it to region residents.


In 2002, two additional halibut plants were built in Hooper Bay and Kipnuk. These two plants will be fully operational for the 2003 season. Looking ahead to the future, more exciting projects are being planned. Mekoryuk and Toksook Bay are scheduled to have new facilities built during 2003, and feasibility work is currently conducted for an additional upgrade of the halibut plant in Tununak, a major upgrade of the salmon plant in Quinhagak, as well as a salmon plant in Goodnews Bay.


Looking into the very near future, CVRF and CVS plan to build infrastructure to support the local in-shore fishery. CVRF has contributed to the expansion of the airport at Quinhagak to assist in developing vital infrastructure for the commercial fishery operation in the region. Fishery Support Centers are currently being designed and examined for feasibility in all of our communities. CVS has plans in 2003 to begin cataloging new species for possible commercialization. CVS is dedicated to developing the in-shore fisheries for our 20 communities. CVS feels it is vital to preserve, maintain, and expand the culture, history, and tradition of harvesting resources from the ocean, rivers, and lakes. Despite these difficult times surrounding many of the fisheries in Alaska, CVS will continue to focus and expend it’s resources to develop this bounty from nature in order to assist growth in our most vital resource… our people.


Arctic Ocean





Chukchi Sea






ALASKA Bering Sea

Coastal Villages Region Fund is a Community Development Quota (CDQ) organization with 20 member communities from Scammon Bay to Platinum. CVRF’s fisheries resources, which are allocated by the MagnusonStevens Act, are a share of the rich Bering Sea fishery. Among the fish harvested are salmon, cod, pollock, halibut and crab.


It is the vision of Coastal Villages Region Fund to become a key player in the Bering Sea Fisheries and human resource development so there is sustainable economic and commercial development of the local resources in the CVRF Region.

Gulf of Alaska Bristol Bay

Pacific Ocean


Coastal Villages Crab (CVC)

Coastal Villages Pollock (CVP)

Coastal Villages Crab, LLC (CVC), a wholly owned subsidiary of CVRF, was established in 1998 as a holding company for investments in the crab sector. CVC owns 50% of Silver Spray Seafoods, LLC, which owns the F/V Silver Spray. The F/V Silver Spray harvests crab and Pacific cod. Recently, CVC acquired 50% ownership in the Sanko Fisheries, LLC and Karin Lynn Fisheries, LLC, which collectively own the F/V Alaskan Enterprise and F/V Karin Lynn. These partnerships provide employment and training opportunities for members of our community.

Coastal Villages Pollock, LLC (CVP), a wholly owned subsidiary of CVRF, was established in 2000 as a holding company for investments in the pollock sector. During 2002, CVP increased its ownership in American Seafoods, LP from approximately 22% to approximately 39%.

Coastal Villages Longline (CVL) Coastal Villages Longline, LLC (CVL), a wholly owned subsidiary of CVRF, was established in 1997 as a holding company for investments in the Pacific-cod and sablefish sectors. In the beginning of 2002, CVL owned 20% of Ocean Prowler, LLC, which owns the F/V Ocean Prowler, a longline vessel that harvests mainly Pacific cod, and 45% of Kokopelli Fisheries, LLC, which owns the F/V Ocean Harvester, a longline vessel that harvests mainly sablefish and halibut. During 2002, CVL acquired 20% ownership in Prowler, LLC, which owns the F/V Prowler and F/V Bering Prowler, longline vessels that harvest Pacific cod. These partnerships provide employment and training opportunities for members of our community.

AMERICAN SEAFOODS GROUP As a global leader in the harvesting, processing and supply of quality seafood, American Seafoods Group is one of Alaska’s most progressive seafood companies. American Seafoods Group is headquartered in Seattle, WA with sales offices in Japan and Europe. American Seafoods’ fleet is comprised of seven catcher-processors that fish in the Bering Sea and three freezer longliners which fish in the Gulf of Alaska, Aleutian Islands and the Bering Sea. In addition to our vessel operations, the company operates HACCPapproved production facilities in New Bedford, MA, Demopolis, AL and Greensboro, AL that specifically tailors products that are distributed under a variety of American Seafoods and private label brands. Due to their production capabilities, American Seafoods Group is able to provide the highest quality and freshest seafood possible to its customers.

Coastal Villages Seafoods (CVS) Coastal Villages Seafoods, LLC (CVS), a wholly owned subsidiary of CVRF, was established in 1999 to operate fish plants in the region. CVS operates a salmon processing facility in Quinhagak and six halibut plants in Toksook, Mekoryuk, Tununak, Hooper Bay, Kipnuk and Chefornak. CVS also implemented a herring incentive program to ensure that there is a market for the Herring fishermen. During 2002, the Quinhagak processing facility processed all the harvest from the Kuskokwim and Goodnews Bay fisheries.

Coastal Villages Region Fund 501(c)(4)

Coastal Villages Angler (CVA)


Coastal Villages Angler, LLC (CVA), a wholly owned subsidiary of CVRF, was established in 2000 as a holding company for investments in sport fishing. CVA owns 33.33% of Arolik River Sportfishing, LLC, which owns a fishing lodge in Quinhagak. This investment provides additional opportunities in the region and helps diversify the region from the salmon industry. Coastal Villages Groundfish (CVG) Coastal Villages Groundfish, LLC (CVG), a wholly owned subsidiary of CVRF, was established in 2001 as a holding company for investments in the groundfish sector, including flathead and yellowfin sole. CVG owns 20.09% of Cape Horn Fisheries, LLC, which owns the F/V Cape Horn, a factory trawler that harvests and processes bottom fish. This investment was the first investment by any CDQ group in this sector.

Coastal Villages Pollock, LLC

American Seafoods, LP (38.95%)

Pacific Longline Company, LLC (31.16%)

Coastal Villages Angler, LLC

Coastal Villages Longline, LLC

Coastal Villages Seafoods, LLC

Coastal Villages Crab, LLC

Arolik River Sportfishing, LLC (33.3%)

Kokopelli Fisheries, LLC (45%)

Coastal Villages Groundfish, LLC

Cape Horn Fisheries, LLC (20.09%)

Prowler, LLC (20%)

Ocean Prowler, LLC (20%) Silver Spray Seafood, LLC (50%)

Sanko Fisheries, LLC (50%)

Karin Lynn Fisheries, LLC (50%)




The Scholarship program allows students to choose the institution of their choice. CVRF has assisted students in going to flight school, vocational schools and universities such as UAA. There were 38 awards made totaling $90,608 in 2002.

Fishermen may apply for loans to upgrade their equipment, or to start fishery-related businesses. Fishermen can also purchase IFQs in the halibut and sablefish fisheries. Another area of this program is to provide technical assistance and access to capital for businesses that serve the fishing industry. Over $257,000 was loaned to our area fishermen in 2002.

The Internship program offers opportunities at the CVRF operated fish processing plants, off shore fishing vessels and at the corporate office in Anchorage. In 2002, there were 13 individuals offered internships and the opportunity to enhance their work skills while earning over $72,000 in wages.

Fuel Delivery

The Training program offers residents the opportunity to get training in skills required for the fishing industry. 102 people were trained through various programs offered by CVRF and subsidiaries. The Employment facilitation program’s main purpose is to recruit and assist individuals in acquiring jobs with our partners, at our processing plants or in our offices. There were 53 offshore employment contracts made with our partners, CVS employed 312 people in the plants bringing over $1 million into the region and CVRF employed 40 to deliver its programs. Over 400 people received wages from CVRF and subsidiaries in 2002.

Fisheries By participating in the region’s commercial fisheries, Coastal Villages Seafoods (CVS) is able to provide region fishermen with direct cash payments and a market for their fish. In 2002, salmon and halibut fishermen earned $479,000 and herring fishermen earned $211,000.

Junior Achievement

Assistance is available to facilitate early spring fuel deliveries and/or reserves to ensure that local fishermen will have necessary fuel for fishing season. Two communities applied to CVRF in 2002 for assistance.

Tax and Permit Assistance This program provides tax preparation assistance to fishermen, so that permits and the right to fish are not lost due to action by the Internal Revenue Service. This program helped bring $902,086 in individual tax refunds back into the region. Technical assistance is also available to fishermen to ensure that permits remain in the region.

Marine Safety Project Targeted to teach fishermen the dangers of fishing and how to mitigate these dangers, the program will educate fishermen about precautionary measures and practices to engage in prior to traveling on the water.

Project Management This program is designed to assist communities in finding the expertise required to write grants, do feasibility studies, and analyze considered projects. In addition to this program, residents or organizations may obtain assistance in starting a local business that supports commercial fisheries through the loans and other technical services.

This program is aimed at teaching children from K-8th grade how economics affect their family, their community and the world. Outreach


This program provides the opportunity for our region’s youth to develop leadership skills.

Developed as an initiative to promote communication between CVRF and it’s member communities, this program presents opportunities and other information to our members through various formats such as media, company newsletters and potlatches.

Rural Education Adult Development (READ)

CVRF Development Project

The READ program encourages individuals who have not completed high school to raise their educational skill levels by offering them the opportunity to achieve a General Education Diploma (GED). Scholarships are available year-round for this effort.

To maintain continuous improvement in all operations of the Board of Directors, Management and the 4-SITE program components, to ensure that all individuals representing CVRF are aware of the goals and mission of the company, and that programs continue to be delivered which are beneficial to the communities.

Coastal Villages Youth Leadership


2002 OUTREACH EFFORTS An integral part of CVRF’s community development agenda is to increase the capacity of the member communities, to find and mobilize their internal resources, and bring the residents into the community planning process. CVRF, as the trustee of the region’s CDQ resources, makes the following three simple commitments to ensure that the community planning effort is a process in which the communities become stronger and more self-reliant. The focus of this outreach plan is to implement activities that will facilitate each of the following commitments: EXCHANGE INFORMATION Information is power. CVRF understands that it is very important to locate all of those places and circumstances within the communities where communication of a public nature already takes place. In creating an outreach communication strategy, CVRF addresses how the current places of information exchange might be validated, strengthened and expanded. COMBINE PLANNING AND PROBLEM SOLVING CVRF recognizes that a community development planning process can sometimes disconnect from the reality of everyday life in the villages, becoming a totally future-oriented, abstract exercise. CVRF’s community planning contains, at its core, a commitment to problem solving in the “here and now”. This commitment strives to ensure that the longer range strategizing will remain connected to the present and the residents will experience concrete results from their participation. To maintain relevancy, CVRF’s planning process involves the broadest possible array of community participants to build consensus and move community-directed agendas forward. As a result, villages realize tangible products (e.g. new business ventures, increase in employment, new school programs, etc.), which lend a sense of concrete progress to the larger community planning process, and give CVRF the needed credibility to act effectively as their CDQ program trustee.

One way that CVRF took the outreach and development initiative to the next level was to invite one delegate from each of our twenty communities to a workshop hosted by the company in May 2002. Information was presented on the CDQ program and CVRF’s role in the industry and as caretaker for this important program for our region. The delegates also participated with members of our Board of Directors in a training program on Board Roles and Responsibilities. CVRF takes it role as caretaker of this resource very seriously so it was important to allow the invited delegate to experience first hand just how seriously we take our roles within the company. The community leaders also participated in a special meeting of the Board of Directors. The community leaders were each given time during the meeting to speak on behalf of their communities – to present their community’s concerns – and were encouraged to offer suggestions on how we could make improvements to CVRF’s community programs. Following the meeting they were invited to evaluate the meeting and provide their input on how we can improve in this important area. This special event opened the door to enhanced communication between CVRF and our member communities. Inviting our communities to take part in our programs allows us to improve upon our knowledge and performance at the Board and staff levels. Other ways CVRF commits to a positive exchange of information are: • • • • • •


SHAPE POSITIVE IMAGES To sustain community development efforts, CVRF must set a tone filled with promise and potential. Through CVRF’s promotion of the positive accomplishments of village residents, a new set of expectations will take root for increased responsibility and self-direction. CVRF believes that public demonstrations and acknowledgement of local achievements and competencies can only multiply and regenerate our communities’ power. These goals are accomplished through a series of activities, partnerships with region, tribal, state, federal and private service agencies, facilitation of village involvement in CVRF program improvements and media outreach. At the core, the outreach project initiatives provide an opportunity to build good working relationships among many people. In this way – establishing a deeper sense of shared responsibility for our future.

• • •

Produce and distribute quarterly newsletters and an annual report Utilize the media to promote programs and available positions within CVRF and the seafood industry Sponsor potlatches in communities Implement and administer programs for the residents in our member communities Staff a Community Liaison in each of the member villages in addition to the Board members Host a monthly show highlighting issues impacting the development of Southwest Alaska Conduct presentations in the village schools for students attending grades 6 -12 Maintain a CVRF Home Page that is available through the Internet Develop a visual media presentation which will communicate CVRF’s history, achievements, future plans, and encourage individuals to get involved in our programs Provide communities with the opportunity for improved communication concerning each community’s development and economic needs Participate in gatherings of human resources representatives from the five other CDQ groups and the seafood industry partner companies and attend job fairs Continue recruiting efforts in communities throughout the year for placement in seafood industry positions.


The CVRF loan committee authorized a total of twelve loans for fishermen of the region. The total authorized was $112,000, to be disbursed during the 2nd quarter.

Twenty-five individuals from the region were trained in technical skills related to careers in the fishing industry. These skill areas included fillet production and HACCP training.

CVRF disbursed $39,981 for twenty-one scholarships for the spring 2002 semester.

CVRF sponsored ten region residents to attend the YukonKuskokwim Regional Economic Development conference.

CVS has secured a grant to help fund the new plant in Kipnuk.

Two residents from Mekoryuk were provided the opportunity to attend a payroll seminar to support and operate small businesses.

CVS has received many applications for the incentive-pricing herring program, and has given out almost $40,000 in advances to the fishermen for the purchase of herring nets.

CVRF employment staff visited all twenty communities to advertise and solicit applications for the seafood industry.

CVS successfully completed the price-incentive program for herring, which ensured markets in each district and provided maximum value from the fishery to the local fishermen.

While on vacation to her home community, a CVRF employee took her job skills back to the local City office and volunteered to assist them with accounting procedures.

CVRF loaned a total of $188,910 to Tom Amos for halibut IFQ’s in January 2002.

CVRF completed installation of a water sanitation system in the Quinhagak plant aimed at improving fish quality.

CVS sent twelve people to Indian Valley for quality control training in fish processing during March 2002. CVS received funding from a STEP grant for this training program.

CVRF implemented a mandatory slush ice program, requiring ice on fish from the time they leave the ocean until delivery to the plant.

CVRF’s staff conducted an internal program evaluation to determine cost/benefit of each of the old and new programs.

During the recapitalization of American Seafoods, CVRF participated in the process of syndicating bank debt. Through the recapitalization process, CVRF received the largest distribution in CDQ history.

The first CVRF segment on “Heartbeat Alaska” aired, and work began on future segment productions. •

During the 2nd quarter, CVRF received two distributions from our investment in Cape Horn Fisheries. These distributions are the first investment returns from this sector of the BSAI fisheries in CDQ history.

The audit of CVRF’s consolidated financial statements was completed in April 2002. KPMG did not propose any adjusting journal entries and they had no management letter comments.

18 •

Four Coastal Villages region residents were recruited and placed to work in the CVRF corporate office.

Ten interns and apprentices were placed to work with CVRF affiliated CDQ business partners in positions in human resources/travel, accounting, engineering apprenticeships, administrative assistance, and quality assurance apprenticeships.


CVRF finished construction of two new halibut plants in Kipnuk and Hooper Bay during the middle of August. CVRF staff and Board members attended the grand opening ceremonies for the Kipnuk and Hooper Bay halibut plants. Over 500 community residents participated in the ceremonies. CVS donated fish for the opening ceremonies that were held in the communities.

CVS produced over 170,000 lbs. of value-added salmon products during the summer fishing season, over three times what was produced the previous year.

CVS hosted representatives from a German baby food company and a Colorado-based natural foods grocery chain as it works to develop markets for its value-added production.

Halibut prices raised $.15 per pound for CV fishermen.

LBMS committee awarded 26 applicants with $47,677 for Fall 2002 semester.

Allocation results came out in September. CVRF gained a point in Pacific cod.

CVRF supported our salmon and halibut operations by providing human resources and recruitment services for efficient employment and crew replacement in Quinhagak, Chefornak, Mekoryuk, Toksook Bay, Tununak, Kipnuk, and Hooper Bay. Efforts of recruitment placed approximately 290 seafood processors in CVRF affiliated operations and business partners.

20 •

Coastal Villages invested in a 20% ownership of the Prowler, LLC, which owes two freezer longline vessels, the Prowler and the Bering Prowler.

CVP acquired an additional 143,801 units of American Seafoods that resulted in an increase ownership to 38.95%.

CVS plant in Quinhagak received Dish Network so they may communicate through the Internet.

CVRF provided airfare for twenty UAF Rural Development students to travel to Quinhagak to experience rural life and to meet with local elders, participate in a community potluck and tour the CVS processing facilities.

Elections for Board representatives took place in seven communities – Quinhagak, Platinum, Napaskiak, Tuntutuliak, Tununak, Newtok and Kwigillingok. Three communities elected new members to the Board.

The Scholarship Committee met in October to discuss an increase in the scholarship budget and improvements in the application guidelines.

The Loan Committee met in November to determine the new loan recipients for the first round of 2003.

The CVRF Anchorage office was expanded and remodeled in November and December in order to accommodate the growing staff.

CVRF signed its 2003 pollock and sablefish royalty contracts in December, and entered into a partnership with BBEDC, CBSFA, YDFDA, and US Seafoods for the harvesting of other multispecies.

CVRF worked in conjunction with Northern Management and the Native Village of Kwinhagak in researching the feasibility of an airport expansion in Quinhagak and in applying for a grant for the project. The airport expansion is anticipated to cut CVS fish freight costs. CVRF has committed to making a matching payment for the grant if it is received.

2 0 0 2 F I N A N C I A L OV E RV I EW Coastal Villages Region Fund (CVRF) has enjoyed strong financial growth over the last several years. CVRF has increased its net assets from $6.7 million in 1998 to $36.3 million in 2002, an average increase of $7.4 million a year. This growth is primarily due to CVRF’s investment strategies, increased involvement in the Bering Sea, and favorable terms negotiated into royalty contracts for pollock and other species. CVRF’s royalty rates are some of the highest rates in the CDQ program. In addition to the growth of CVRF’s net worth, company assets have also grown considerably, from $7.5 million in 1998 to $46.7 in 2002.


Consolidated Royalties as of December 31, 2002

Strategy for the Future: CVRF’s short term strategy is the growth of the company. To accomplish these goals, CVRF has invested in several fishing companies that will provide strong cash flow streams now and in the future. CVRF continues to seek out new investment opportunities to grow and diversify our holdings. Achieving our short term goal will facilitate the long-term goal: building and sustaining a foundation for the future by becoming a key participant in Bering Sea fisheries. Several years from now, it is anticipated that the cash flow from our investments will allow us to provide even greater benefits to our communities, and rely less on revenue received from CDQ royalties. Summary of Direct Financial Benefit to Communities: During 2002, CVRF invested $8.4 million into its communities through employment opportunities, scholarships, training programs, loans, payments to fishermen, construction projects, and other programs. CVRF employed a total of 365 individuals, of which 340 (93%) were from the CVRF region and neighboring communities. CVRF served a total of 636 fishermen through its salmon, halibut and herring operations.

In 2002, to further diversify holdings in the Bering Sea, CVRF has increased its investments in the pollock, Pacific cod and crab sectors. POLLOCK - CVRF increased its investment in American Seafoods from 22% to 39%. This increase in ownership made CVRF the majority owner of the largest offshore fleet in the Bering Sea. PACIFIC COD - CVRF tripled its investments in this sector by acquiring 20% stakes in two freezer longliners. CRAB - CVRF signed a letter of intent to acquire 50% of a crab catcher/processor and a crab catcher vessel. This transaction closed in April of 2003. CVRF has expanded its involvement in the Bering Sea from two vessels in 1998 to nineteen vessels in 2002. The strategy for 2003 is to continue to expand ownership of Bering Sea harvesting and processing capacity in order to build a strong company for future generations.


Consolidated Assets

Matt Tisher, Finance Director

1) Quinhagak $2,648,000 2) Hooper Bay 1,306,000 3) Kipnuk 819,000 4) Toksook Bay 805,000 5) Mekoryuk 718,000 6) Chevak 466,000 7) Tununak 312,000 8) Scammon Bay 273,000 9) Napaskiak 255,000 10) Chefornak 193,000

11) Goodnews Bay 12) Eek 13) Kwigillingok 14) Nightmute 15) Tuntutuliak 16) Newtok 17) Napakiak 18) Platinum 19) Kongiganak 20) Oscarville

$113,000 108,000 97,000 67,000 52,000 50,000 41,000 33,000 25,000 2,000

In 2002, CVRF made substantial investments in the region by constructing two halibut plants, one in Hooper Bay and another in Kipnuk. The plan for 2003 is to build additional halibut plants in Mekoryuk and Toksook Bay, and to make significant improvements to the halibut plant in Tununak and the salmon and halibut processing facilities in Quinhagak. CVRF is also working on a design for a fisheries support center in Scammon Bay.

Pollock 90.69%

Other Flatfish 0.04% Atka Mackeral 0.05%

Pacific Cod 3.06% Sablefish 0.63% Crab 4.89% Crab Processing 0.64%

Consolidated Expenses as of December 31, 2002 Salmon, Halibut & Herring Operations 49.26%

General & Administration 18.63%

Program 32.12%

Percentage of Employees by Location CVRF Region & Neighboring Communities 93%

Other Alaskan 5%

Non-Alaskan 2%


Mr. Howard Amos President Mekoryuk

Mr. Simeon John Vice President Toksook Bay

Mr. Johnny Hawk Eek

Mr. John Pingayak Chevak

Mr. Tim Samson Treasurer Kipnuk

Ms. Helen Kaganak Secretary Napaskiak

Mr. Jack Stewart Goodnews Bay

Mr. Peter John Newtok

Mr. Wassilie Bavilla At Large Executive Board Quinhagak

Mr. Paul Tulik At Large Executive Board Nightmute

Mr. Henry Williams Platinum

Mr. John Erik Chefornak


Mr. Oscar Evon At Large Executive Board Kwigillingok

Mr. Ralph Kiunya Kongiganak



Mr. Morgen Crow Executive Director

Ms. Selma Davis 4-Site Coordinator

Mr. Matt Tisher Finance Director

Mr. Joe Hall Senior Accountant

Ms. Angie Pinnsoneault Controller

Ms. Jenny Keonig General Accountant

Mr. Robert Williams Business Development Director

Ms. Catherine Jumbo Payroll Clerk

Mr. Ruichi “Rudy” Tsukada Business Development Specialist

Ms. Cheryl Dahl AP Clerk

Ms. Lynn Wallona Business Development Administrator

Ms. Sandra Guest Accounting Clerk

Mr. Neil Rodriguez Business Development Specialist

Ms. Verla Mojin Employment Coordinator

Mr. Gabriel Olick Tuntutuliak

Mr. Aloysius Aguchak, Sr. Scammon Bay

Mr. Andy Charlie, Tununak

Mr. Frank Berezkin Napaskiak

Mr. Eric Olson, Sr. Hooper Bay

Mr. Nicholas Paul Napakiak


Mr. David Bill, Sr. Honorary Board Member Toksook Bay

C V R F S TA F F COMMUNITY LIASIONS HOOPER BAY Mr. Bernard Murran Ms. Janet George Administrative Assistant

Ms. Haidee Canete Finance Secretary

MEKORYUK Ms. Mona David TOKSOOK BAY Ms. Vanessa Lincoln

Mr. Casey Weber Expeditor

CHEVAK Ms. Charlotte Nayagak

QUINHAGAK Mr. Kelly Welch Salmon Operations Manager

KONGIGANAK Mr. Zacharias Ivon TUNTUTULIAK Mr. Nick David, Jr.

Ms. Marlene McCormack Travel Coordinator

SCAMMON BAY Mr. John Utteryuk NEWTOK Mr. David Albert NAPASKIAK Mr. Timothy Jacob

Mr. Moses Tulim Community Program Manager Chevak

Mr. Gregory Slats, Jr. Community Program Manager Chevak


Mr. Byron Ulak Community Program Manager Scammon Bay


CHEFORNAK Ms. Brenda Burnett

CHEFORNAK Ms. Dora Mathew Plant Manager Mr. Gregory Tom Assistant Manager MEKORYUK Mr. David David Plant Manager Mr. Gerald Ernest Assistant Plant Manager

our fisheries resources to benefit our most important

TOKSOOK BAY Mr. Nick Chanar Superintendent


EEK Ms. Stella Alexie

Mr. Billy Lincoln, Jr. Assistant

our people.

NAPAKIAK Mr. Lloyd Black

TUNUNAK Mr. Robert Angaiak Plant Manager

QUINHAGAK Ms. Lucille Cleveland

OSCARVILLE Mr. Jimmy Larson

Mr. Gregory Angaiak Assistant Plant Manager KIPNUK Mr. Albert John Plant Manager HOOPER BAY Mr. Lester Wilde Plant Manager

Ms. Valerie Maxie Rural Recruiter Napaskiak

Investing in

Mr. Gerald Hunt Assistant Plant Manager

ANCHORAGE OFFICE 711 H Street, Suite 200 Anchorage, AK 99501 Tel: (907) 278-5151 TF: (888) 795-5151 Fax: (907) 278-5150 CHEVAK OFFICE P.O. Box 213 Tel: (907) 858-7250 TF: (800) 560-7250 Fax: (907) 858-7692 SCAMMON BAY OFFICE P.O. Box 101 Scammon Bay, AK 99662 Tel: (907) 558-5523 TF: (877) 558-5523 Fax: (907) 558-4424 NAPASKIAK OFFICE P.O. Box 6096 Napaskiak, AK 99559 Tel: (907) 737-7396 Fax: (907) 737-7398

COMMUNITY LIASIONS HOOPER BAY P.O. Box 289 Hooper Bay, AK 99604 tel: (907) 758-4330/4062 fax: (907) 758-4331 MEKORYUK P.O. Box 82 Mekoryuk, AK 99630 tel: (907) 827-8138 fax: (907) 827-8133 TOKSOOK BAY P.O. Box 37146 Toksook Bay, AK 99637 tel: (907) 427-7812 fax: (907) 427-7207 CHEVAK P.O. Box 213 Chevak, AK 99563 tel: (907) 858-7859 KONGIGANAK P.O. Box 5110 Kongiganak, AK 99559 tel: (907) 557-5300 fax: (907) 557-5301

TUNTUTULIAK General Delivery Tuntutuliak, AK 99680 tel: (907) 256-2200 fax: (907) 256-2201

SCAMMON BAY P.O. Box 101 Scammon Bay, AK 99662 tel: (907) 558-5523 fax: (907) 558-5524 NEWTOK P.O. Box WWT Newtok, AK 99559 tel: (907) 237-2300 fax: (907) 237-2301 NAPASKIAK P.O. Box 6096 Napaskiak, AK 99559 tel: (907) 737-7301 fax: (907) 737-7398

QUINHAGAK General Delivery Quinhagak, AK 99655 tel: (907) 556-8167 fax: (907) 556-8520 EEK P.O. Box 70 Eek, AK 99578 tel: (907) 536-5301 fax: (907) 536-5302 NAPAKIAK P.O. Box 34109 Napakiak, AK 99634 tel: (907) 589-2611 fax: (907) 589-2612 OSCARVILLE P.O. Box 6129 Napaskiak, AK 99559

CHEFORNAK P.O. Box 98 Chefornak, AK 99561 tel: (907) 867-8303 fax: (907) 867-8304

Historic photos © Jesuit Oregon Province Archives, Gonzaga University. All other photos © Coastal Villages Region Fund.

Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.