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Coastal Villages Region Fund

Alaskanization

20 Year in Review

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table of contents Mission Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Message from the President . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Message from the Executive Director . . . . . . . . . . . . . . . . . . . . . . . 5 Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Highlights of 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Coastal at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

CVRF Region Benefits

Community Service Center Staff . . . . . . . . . . . . . . . . . . . . . . . . . 12 Community Service Centers . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Coastal Villages Seafoods (CVS) In-Region Tender Fleet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Salmon Fishery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Halibut Fishery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Processing Plants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Forefathers of CDQ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 CVRF Timeline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18-31 Program Services 4-SITE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Youth Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 CDQ Project Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Marine Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Outreach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Alaskan Ownership

Coastal Villages Pollock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Coastal Villages Crab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Coastal Villages Longline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Financial Reports

Importance of Pollock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Statement of Financial Position . . . . . . . . . . . . . . . . . . . . . . . . . . Statement of Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . General and Administrative Expenses . . . . . . . . . . . . . . . . . . . . . Notes to the Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . Cumulative Earnings and Benefits . . . . . . . . . . . . . . . . . . . . . . . .

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our mission Our Strategic Mission is to provide the means for development of our communities by creating sensible, tangible, and long-term opportunities that generate hope for all people who want to fish and work.

Strategic Intent (Vision)

Continuous focus on balancing growth in commercial fishing and sustainable development of CVRF communities.

Core Values • • • • • • •

Effective Strategic Leadership Trust, Integrity, and Teamwork Respect for and Understanding of all PEOPLE Active Community Participation Respect for and Understanding of the Land, Sea, and the Resource Growth and Sustainability through Maximum Return on Capital Industrious People + Job Opportunities = Self Determination

Core Competencies • • • • • •

Balance the needs, wants, and expectations of all-now, and 7 generations from now Understand risks/rewards, develop a plan of action, support it and execute on it Deliver efficient and equitable economic benefits to our communities Develop and deploy successful business models and adapt as needed for future use Support bold thinking and continuous innovation Deliver disciplined, purposeful, and sensible initiatives to sustain and stimulate new economic growth in our region

Work Fish Hope 3


Message from the President Alaskans calling the shots: WORK, FISH, HOPE We are proud to report our financial success to you with this annual report and we are proud to report to you that we did it our way, with AlaskansCVRF region residents-calling the shots. For over twelve years, Coastal Villages has enjoyed standard election procedures that give an important voice to region residents in the governance and leadership of their CDQ group, Coastal Villages. Our model of governance was in place even before the 2006 federal CDQ amendments codified certain CDQ board member selection parameters. Consistent with the “stability” theme of the 2006 amendments, Coastal’s bylaws were changed to require board member elections only every other year instead of annually. Something has been working. You can see it on Coastal’s balance sheet; you can see it throughout our region-the 1,000-plus fishing and processing jobs that Coastal is providing annually to residents in our salmon/halibut operation, the youth who can get scholarships for college or trade schools, the young adults coming back from Coastal’s Bering Sea vessels with more money, the parkas and heating oil and firewood for our Elders. The 2006 CDQ amendments were a key ingredient to our success, freeing the CDQ groups from State oversight and allocation battles, and inviting greater stability in governance. Our communities are thriving, with viable, stable populations engaged in the election of CVRF Board Members, who in turn, are successfully guiding our region’s seafood company, Coastal Villages. Our unique respect and understanding of fishing and its impact point the way to the future: region residents controlling sustainable resources for the benefit of the member communities. Our elected, authorized representatives to the Coastal Board have created and sustained our mantra: WORK, FISH, and HOPE. I would like to honor my predecessor, Wassilie Bavilla, the long-time elected representative from my village of Quinhagak. Wass’ passed away early in 2010 after a long but positive health battle. Wassilie saw many changes, and helped guide Coastal through tumultuous times. As your chairman, I can attest to the many concerns and opinions that can cloud the issues that we face. I would also like to honor Mr. Hultman “Ike” Kiokun of Mekoryuk. Ike said what needed to be said when no one else had the courage. Ike often used his less than formal leadership to help us work through tough issues. Hultman passed away during 2010, and will be remembered as one of the influential elected representatives from Mekoryuk. 2010 will always be the year that we remember losing Senator Ted Stevens, our "Uncle Ted." Senator Stevens was pivotal in how we got to where we are today-without him, the Americanization of the BSAI fisheries might not have happened, let alone the Alaskanization. The relationship between Ted and CVRF will be forever remembered as we celebrate him on Ted Stevens Day. Thank you,Ted! Change is unavoidable, and we know we must move forward. We were proud to give our new Senator, Mark Begich, a tour of one of our most important assets, the C/P Northern Hawk. We look forward to working with Senator Begich to create the next chapter in ALASKANIZATION. In many ways, building the infrastructure to support the Alaskanized fleet will be more challenging than acquiring the vessels has

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been. It will take strength and vision from a wider array of decision makers in Alaska. It will not happen overnight. We cannot do it alone. It is clear that we are the natural owners of the Bering Sea and we want to do more-always more-for our communities and our residents through WORK, FISH, and HOPE. As we approach the 20 year anniversary of the CDQ program, we are not done with our mission-it has really only just begun. Let me remind you again that we are graduating from our company’s teenage years into a new phase of maturity, learning, and growth. We are optimistic because of our sizeable balance sheet and the benefits being delivered to our villages, but we are looking keenly into the future, striving to promote more local governance, leadership, and employment. We support our young people in their quest for better education, continued learning, and real experience so that they will be prepared to operate our company fruitfully in the years ahead. As a retired teacher, it is a great honor to be part of the enterprise that is finally providing our youth with the private sector jobs to keep them in our region, even our sons and daughters who attend college and trade schools. Coastal’s democratic election and governance system is working. We are stable, successful and well-prepared to do even more for our region residents in the future-for the people, by the people.

Thank You,

John O. Mark, Chair


Message from the Executive Director Alaskanization Residents of the CVRF Region: In 2010, Alaska’s fishing community lost one of its greatest champions, U.S. Senator Ted Stevens. Senator Stevens was a vital leader in extending U.S. fisheries jurisdiction to 200 miles from shore, in creating the Alaskanmajority council to manage the fisheries, in stopping the high seas driftnet boats that used to intercept our salmon, in protecting our cultural values, in requiring bycatch to be minimized, and in “rationalizing” the pollock, crab, and cod fisheries for the benefit of the resource and participants alike. The residents of our 20 villages and of the 45 other villages in the Western Alaska Community Development Quota (CDQ) Program benefit dramatically from his work. The CDQ program would not exist, or be flourishing, without the federal laws that Ted Stevens helped write. We begin our 2010 Annual Report by remembering Senator Stevens and by expressing our deepest gratitude to his family for the profound impact he has made, and continues to make, in our lives-particularly through the CDQ Program and his work in the fisheries. Thank you, Senator Ted. The teal-color vessel paint you see behind Coastal’s new President John Mark, and Alaska’s new Senator Mark Begich, is being called “viral” in Seattle because it appears on more and more vessels each year. We were grateful for the opportunity to show Senator Begich all of our teal boats in Seattle and to discuss the infrastructure needed in our region and in Alaska's deep-water ports to enable these newly Alaskan-owned vessels to come home. We cannot fully achieve Alaskanization until we have the infrastructure in Alaska to support our new vessels. The CDQ statute requires CDQ groups to invest our earnings back into the Bering Sea by buying fishing boats, quota, and processors. This has been a fundamental tenet of CDQ all the way back to the work done in the late-1980s and early 1990s by Don Young, Steven White, Norm Cohen, Joe Paniyak, Wassilie Bavilla, Hultman Kiokun, Henry Mitchell, and Harold Sparckand all the way up through the work done in 2005 by Ed Rasmuson and the CDQ Blue Ribbon Commission, which laid the foundation for the current federal CDQ statute. Where the 200-mile limit “Americanized” the fisheries, the CDQ program has been gradually “Alaskanizing” the fisheries since 1992 by giving Alaskans both the means and the directive to buy the Seattle-based Bering Sea fishing fleet. Over the past 13 years, Coastal has done its share of Alaskanization by acquiring pollock, cod, crab, salmon, and halibut harvesting and processing assets valued at over $300 million dollars. This figure is in addition to our CDQ allocations, which are effectively worth an estimated $100 million to our region. Our wholly-owned fleet of teal vessels harvest around 175 million pounds of fish annually, and generate around $100 million in revenue. If you lined up 40-foot containers full of our finished seafood product end-to-end, they would stretch over eleven miles in one year! We incur more than $60 million in operating expenses annually for things like vessel repairs, crew wages, fuel, groceries, fishing gear, and electronics. Most of these expenditures will continue to take place outside Alaska until the harbor, dock, and other infrastructure needed to support our fleet can be completed in Alaska. Alaskanization is good not just because of the increased economic benefit, but because Coastal and the other CDQ groups are the natural owners, meaning

we have a stake in the long-term viability and stewardship of all aspects of the economic and ecological systems of the Bering Sea. Our communities depend on local resources, so we care about people being able to catch enough fish in perpetuity so they can sustain their lives. We also care about the operational and financial consequences of bycatch issues, because the incidental catching of non-targeted species is an unavoidable fact in any fishery, and we fund all of our programs from money earned in industrial fishing in the Bering Sea. Many of our residents earn cash by fishing commercially, so we care about maximizing the price they are paid for their salmon and we also care about paying our residents more-not less-to work in our plants. Alaskanization is also good because of the money, plain and simple. When I walked in the door here at Coastal Villages in 1998, I did not know what I did not know, and I am fortunate that you were all patient with me. I want to thank each of Coastal’s past and present board members, each of our 9,300 region residents, and countless staff members and business contacts. What a ride! We have posted $553 million in audited revenue since 1998 that has been converted into $304 million in total assets and $288 million in program and operations expense, with a mere $51 million in general and administrative expenses. All the fish, hope, and good, old-fashioned hard work have “Alaskanized” these massive dollar amounts for our people. The 2005 Rasmuson Blue Ribbon Commission and 2006 federal CDQ amendments stabilized the CDQ allocations, gave CDQ groups greater independence, and have helped accelerate Alaskanization. Mr. Rasmuson theorized at the time that CDQ groups could eventually own more than threequarters of the Bering Sea industrial fishery. We are on track to achieve that in the not-so-distant future. Coastal made another big step forward in 2010 by redeeming our shares in American Seafoods in exchange for the pollock catcher/processor Northern Hawk, for one percent of the directed pollock catch, for three long-liners, and for a substantial amount of cod quota. The redemption left Coastal with a significant increase in wholly-owned Bering Sea assets, and with no debt-a rarity in the industry. Alaskanization means that we must continue to bring the wealth generated in the Bering Sea home to the Alaskan communities that have stood by and watched the foreign fleet, then the Seattle fleet, rake in billions from our own front yard. As the CDQ Program approaches its 20th birthday, it is my firm belief that Steven White and Wassilie Bavilla, and most certainly, Theodore Fulton Stevens are proud of the achievements of the CDQ companies so far. I hope that they are particularly happy with Coastal’s success in 2010 as it became the first CDQ group in history to wholly-own its pollock harvesting platform, crab-harvesting platforms, and cod-harvesting platforms. Now we must look forward to 2011 and beyond to contend with the perils of activity and action. Along with our great staff, I look forward to doing more for the benefit of our 20 communities with each and every ton of fish that we kill, efficiently and sustainably: Alaska bounty helping Alaska villages in perpetuity under the premise of WORK FISH HOPE.

Thank you,

Morgen Crow, Coastal Villages

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CVRF Board Members: 1998 ‒ Present

Napakiak

Chefornak

Napaskiak

Tommy Kusaiak . . . . . . . . . . . . . . . . Dec. 1998 ‒ Dec. 2000 Oscar Wassillie . . . . . . . . . . . . . . . . . Dec. 2000 ‒ Dec. 2001 John Erik . . . . . . . . . . . . . . . . . . . . . Dec. 2001 ‒ Dec. 2002 Jonathan Lewis . . . . . . . . . . . . . . . . . Dec. 2002 ‒ Dec. 2006 Oscar Wassillie . . . . . . . . . . . . . . . . . Dec. 2006 ‒ Mar. 2008 Walter Tirchick . . . . . . . . . . . . . . . . . Mar. 2008 ‒ Nov. 2009 Joe Avugiak . . . . . . . . . . . . . . . . . . . . Dec. 2009 ‒ Present

Chevak

Peter Boyscout . . . . . . . . . . . . . . . . . John Pingayak . . . . . . . . . . . . . . . . . Earl Atchak . . . . . . . . . . . . . . . . . . . Andrew Boyscout . . . . . . . . . . . . . . . Skye Chayalkun . . . . . . . . . . . . . . . .

Eek

Steven White . . . . . . . . . . . . . . . . . . Johnny Hawk . . . . . . . . . . . . . . . . . . William Brown . . . . . . . . . . . . . . . . . Johnny Hawk . . . . . . . . . . . . . . . . . . Walter Brown . . . . . . . . . . . . . . . . . .

Dec. 1998 ‒ Dec. 2001 Dec. 2001 ‒ Dec. 2005 Dec. 2005 ‒ Dec. 2006 Dec. 2006 ‒ Nov. 2009 Dec. 2009 ‒ Present

Dec. 1998 ‒ Dec 2001 Dec. 2001 ‒ Dec. 2004 Dec. 2004 ‒ Dec. 2007 Dec. 2007 ‒ Nov. 2008 Nov. 2008 ‒ Present

Goodnews Bay

Bavilla Merritt . . . . . . . . . . . . . . . . . Dec. 1997 ‒ Dec. 1998 Charley Chingliak . . . . . . . . . . . . . . Dec. 1998 ‒ Dec. 2001 Jack Stewart . . . . . . . . . . . . . . . . . . . Dec. 2001 ‒ Feb. 2006 Evan S. Evan . . . . . . . . . . . . . . . . . . . Feb. 2006 ‒ Present

Hooper Bay

Edgar Hoelscher . . . . . . . . . . . . . . . . Jolene Nukusuk . . . . . . . . . . . . . . . . Eric Olson, Sr. . . . . . . . . . . . . . . . . . Edgar Hoelscher . . . . . . . . . . . . . . . . Eric Olson, Sr. . . . . . . . . . . . . . . . . .

Dec. 1998 ‒ Dec. 2002 Dec. 2002 ‒ Dec. 2003 Dec. 2003 ‒ Nov. 2008 Nov. 2008 ‒ Apr. 2010 May 2010 ‒ Present

Kipnuk

Carl Dock . . . . . . . . . . . . . . . . . . . . . Dec. 1998 ‒ Dec. 2001 Timothy Samson . . . . . . . . . . . . . . . Dec. 2001 ‒ Dec. 2009 George Chuckwuk . . . . . . . . . . . . . . Dec. 2009 ‒ Present

Kongiganak

John Phillip, Sr. . . . . . . . . . . . . . . . . Dec. 1998 ‒ Dec. 2001 Ralph Kiunya, Sr. . . . . . . . . . . . . . . Dec. 2001 ‒ Dec. 2007 James Lewis . . . . . . . . . . . . . . . . . . . Dec. 2007 ‒ Present

Kwigillingok

Fred K. Phillip . . . . . . . . . . . . . . . . . Dec. 1998 ‒ Dec. 2002 Oscar Evon . . . . . . . . . . . . . . . . . . . . Dec. 2002 ‒ Nov. 2009 Andrew Kiunya . . . . . . . . . . . . . . . . Nov. 2009 ‒ Present

Mekoryuk

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Abraham David . . . . . . . . . . . . . . . . Howard Amos . . . . . . . . . . . . . . . . . Hultman Kiokun . . . . . . . . . . . . . . . Daniel T. Olrun . . . . . . . . . . . . . . . . Howard Amos . . . . . . . . . . . . . . . . .

Dec. 1998 ‒ Dec. 2000 Dec. 2000 ‒ Oct. 2005 Oct. 2005 ‒ Dec. 2006 Dec. 2006 ‒ Nov. 2009 Dec. 2009 ‒ Present

Fritz Willie . . . . . . . . . . . . . . . . . . . . Carl Motgin . . . . . . . . . . . . . . . . . . . Nicholas Paul . . . . . . . . . . . . . . . . . . Richard Jung . . . . . . . . . . . . . . . . . .

Dec. 2000 ‒ Dec. 2002 Dec. 2002 ‒ Dec. 2003 Dec. 2003 ‒ Nov. 2008 Nov. 2008 ‒ Present

Carl Maxie . . . . . . . . . . . . . . . . . . . . Dec. 2000 ‒ Dec. 2001 Helen Kaganak . . . . . . . . . . . . . . . . . Dec. 2001 ‒ Present

Newtok

Peter John . . . . . . . . . . . . . . . . . . . . . Dec. 1998 ‒ Nov. 2008 John Andy . . . . . . . . . . . . . . . . . . . . Nov. 2008 ‒ Present

Nightmute

Joseph Post . . . . . . . . . . . . . . . . . . . . Paul Tulik . . . . . . . . . . . . . . . . . . . . . Jimmy George . . . . . . . . . . . . . . . . . Paul Tulik . . . . . . . . . . . . . . . . . . . . .

Platinum

Henry Williams . . . . . . . . . . . . . . . . Edward Fox . . . . . . . . . . . . . . . . . . . Henry Williams . . . . . . . . . . . . . . . . John Bright . . . . . . . . . . . . . . . . . . . . Henry Williams . . . . . . . . . . . . . . . .

Dec. 1998 ‒ Dec. 2001 Dec. 2001 ‒ Oct. 2005 Oct. 2005 ‒ Dec. 2006 Dec. 2006 ‒ Present

Dec. 1998 ‒ Dec. 1999 Dec. 1999 ‒ Dec. 2000 Dec. 2000 ‒ Dec. 2005 Dec. 2005 ‒ Nov. 2008 Nov. 2008 ‒ Present

Oscarville

Ignati Jacob . . . . . . . . . . . . . . . . . . . Dec. 1999 ‒ Dec. 2001 Frank Berezkin . . . . . . . . . . . . . . . . . Dec. 2003 ‒ Present

Quinhagak

Wassilie Bavilla . . . . . . . . . . . . . . . . . John O. Mark . . . . . . . . . . . . . . . . . . Wassilie Bavilla . . . . . . . . . . . . . . . . . John O. Mark . . . . . . . . . . . . . . . . . .

Dec. 1998 ‒ Dec. 2005 Dec. 2005 ‒ Oct. 2007 Dec. 2007 ‒ Jan. 2010 Jan. 2010 ‒ Present

Scammon Bay

George Smith . . . . . . . . . . . . . . . . . . Dec. 1998 ‒ Dec. 2000 Clifford Kaganak . . . . . . . . . . . . . . . Dec. 2000 ‒ Dec. 2002 Aloysius Aguchak . . . . . . . . . . . . . . . Dec. 2002 ‒ Dec. 2004 George Smith . . . . . . . . . . . . . . . . . . Dec. 2004 ‒ Feb. 2006 Sebastian Kasayuli . . . . . . . . . . . . . . Feb. 2006 ‒ Dec. 2006 Homer Hunter . . . . . . . . . . . . . . . . . Dec. 2006 ‒ Nov. 2008 Sanky Ulak . . . . . . . . . . . . . . . . . . . . Nov. 2008 ‒ Nov. 2009 James Akerelrea . . . . . . . . . . . . . . . . . Nov. 2009 ‒ Present

Toksook Bay

David Bill, Sr. . . . . . . . . . . . . . . . . . . Dec. 1997 ‒ Dec. 1998 Simeon John . . . . . . . . . . . . . . . . . . . Dec. 1998 ‒ Dec. 2004 David Bill, Sr. . . . . . . . . . . . . . . . . . . Dec. 2004 ‒ Dec. 2006 Willie Charlie . . . . . . . . . . . . . . . . . . Oct. 2007 ‒ Dec. 2007 Harry Tulik . . . . . . . . . . . . . . . . . . . . Dec. 2007 ‒ Present

Tuntutuliak

Peter Joseph, Sr. . . . . . . . . . . . . . . . . Dec. 1998 ‒ Dec. 2003 Gabriel Olick . . . . . . . . . . . . . . . . . . Dec. 2003 ‒ Present

Tununak

Andy Charlie, Sr. . . . . . . . . . . . . . . . James James . . . . . . . . . . . . . . . . . . . Andy Charlie, Sr. . . . . . . . . . . . . . . . Felix Albert . . . . . . . . . . . . . . . . . . . .

Dec. 1998 ‒ Dec. 2001 Dec. 2001 ‒ Dec. 2002 Dec. 2002 ‒ Dec. 2005 Dec. 2005 ‒ Present


2003

2004

2005

2006

2007

2008

2009

7 2010


2010 Board of Directors Name

Community Term

Joe Avugiak . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chefornak��������������� 2009-2015 Skye Chayalkun . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chevak������������������� 2009-2015 Walter Brown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Eek ������������������������� 2008-2011 Evan S. Evan, (Treasurer) . . . . . . . . . . . . . . . . . . . . . . . . . . . . Goodnews Bay ������� 2009-2015 Edgar Hoelscher (Vice President: 10/09-4/10) . . . . . . . . . . . . . Hooper Bay������������� 2008-2010 Eric Olson, Sr. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Hooper Bay������������� 2010-2011 Timothy Samson, (President) . . . . . . . . . . . . . . . . . . . . . . . . . . . Kipnuk ������������������� 2007-2011 James Lewis, (Executive Committee) . . . . . . . . . . . . . . . . . . . . . Kongiganak ����������� 2007-2011 Andrew Kiunya . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Kwigillingok����������� 2009-2013 Howard Amos . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mekoryuk��������������� 2009-2015 Richard Jung . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Napakiak����������������� 2009-2015 Helen Kaganak . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Napaskiak��������������� 2008-2013 John Andy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Newtok������������������� 2008-2013 Paul Tulik, (Secretary) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nightmute��������������� 2009-2015 Frank Berezkin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oscarville��������������� 2007-2011 Henry Williams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Platinum����������������� 2008-2013 Wassilie Bavilla . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Quinhagak������������� 2008-2010 John O. Mark, (Vice President: 4/10-12/10) . . . . . . . . . . . . . . . Quinhagak������������� 2010-2013 James Akerelrea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Scammon Bay��������� 2009-2015 Harry Tulik . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Toksook Bay����������� 2007-2011 Gabriel Olick, (Executive Committee) . . . . . . . . . . . . . . . . . . . . . . Tuntutuliak ����������� 2008-2013 Felix Albert, (Executive Committee) . . . . . . . . . . . . . . . . . . . . . . Tununak����������������� 2008-2013

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2010 Board of Directors Top Row (standing left - right):

Gabriel Olick Howard Amos Felix Albert Helen Kaganak Richard Jung Skye Chayalkun James Akerelrea Morgen Crow (ex-officio) Evan S. Evan John O. Mark Paul Tulik Eric Olson Sr. Harry Tulik John Andy

Bottom Row (sitting left - right):

Andrew Kiunya Timothy Samson James Lewis Frank Berezkin Henry Williams Walter Brown Joe Avugiak


Highlights of 2010 • 481 salmon permit holders delivered 3,322,528 pounds of salmon and delivered $2,610,135 ŒŒ 399 permit holders fished W1 and delivered 772,090 pounds of salmon ŒŒ 241 permit holders fished W4 and delivered 1,998,827 pounds of salmon ŒŒ 48 permit holders fished W5 and delivered 551,611 pounds of salmon • 158 halibut card holders delivered 333,162 pounds of halibut and earned $1,048,582 • 8 tenders and 2 shuttle boats provided tendering service to the salmon and halibut fleet • CVS began a program to train all of its commercial salmon fishers to become “Certified Quality Producers” as part of an on-going effort to bring higher prices for our fishers' catch, promote our brand, and preserve the quality of Kuskokwim salmon • CVS ceased operating the processing plant in Quinhagak after a decade of service • 510 CVS employees earned $2,996,390 • 12 residents earned $251,922 working on our Coastal Villages crab vessel fleet • Over 760 fishing jobs provided more than $8,200,000 in earnings • The Goodnews Bay Regional Processing Plant increased its employee housing capacity to 200 processors, up from 124 in 2009 • A vessel naming contest was held in all 20 K-12 schools for the Wassilie B (Insatiable), Hawk (Leo), Challenger (Mr. Alexie), Coastal Mist (Sunshine 10), and Double E (Sunshine 11) • The new CVRF company website was launched in May • $441,650 in scholarships were awarded to 119 residents • $114,803 in training funds were awarded to 53 residents ŒŒ $89,240 in matching funds were received from other funding organizations • 7 interns were hired from the region and earned $31,800 • $42,851 in matching funds were awarded for various youth leadership activities • 18 youth attended the 2010 AFN Elder and Youth Conference in Fairbanks • 17 youth attended the 2010 College Fair in Anchorage

• 249 youth were hired as Coastal Youth-to-Work employees and earned $56,612 ŒŒ 540 elders benefitted from this program by having YTW employees help with various chores • A total of $500,000 in CDQ Project Fund monies were distributed to all 20 CVRF governing bodies • 75 marine safety kits and 100 lifejackets were given to CVS salmon and halibut commercial fishers • Marine safety training for residents was conducted in 5 communities by certified members of CVRF's Community Service Center staff • 574 drums of heating oil were delivered to residents to warm their houses • 1,497 tax returns were completed with help from Coastal and ABDC, assisting 3,402 residents in getting $2,627,792 in tax refunds • $220,000 was committed in matching funds for various fisheries management research projects for the Kuskokwim Bay and River • 46,216 pounds of halibut, all caught by CVS fishers, were delivered to elders • Dozens of high school students were assisted at various school events • 53 funeral feast donations were made totaling $16,935 • Staple items were delivered to all communities by the freezer longliner North Cape-one of the vessels acquired by CVRF in 2010 • CVRF won the State of Alaska Governor’s North Star Award for International Excellence in September • CVRF acquired the right to own the registered trademark, “Pollock Provides,” from the United States Patent and Trademark Office • John O. Mark represented CVRF at the Coast Guard Foundation Biennial Alaska Awards dinner on August 11 • In December, the CVRF Board of Directors moved to adopt a company holiday in honor of Senator Ted Stevens • Neil Rodriguez was selected to serve on the Advisory Panel of the North Pacific Fishery Management Council-the first AP member with strong ties to our region since Harold Sparck • Coastal acquired the C/P Northern Hawk, 1 percent of the BSAI directed pollock catch, three long-liners and 7.6 percent of the Pacific cod freezer long-liner sector allocation • Coastal’s fleet is capable of harvesting 175 million pounds of seafood worth an estimated $150 million a year

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Coastal at a Glance

Coastal Villages Region Fund 20 Communities | 20 Board Members | 60+ Staff

Alaskanization: Coastal Villages’ ownership in the Bering Sea has grown, and the number of jobs we must fill has grown as well. We now employ over 500 people aboard our vessels and in our plantswhile providing salmon and halibut markets to an additional 1,000 permit holders and crew in our region.

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Coastal Villages Seafoods (CVS) 250+ Processors | 1,000+ Fishers & Crew 30+ Tender Crew | 8 Tenders

2010 Seafood Sales: $9 Million

Member Communities: Chefornak

Programs & Projects Benefits to 9,300 Residents

Chevak Eek Goodnews Bay Hooper Bay Kipnuk Kongiganak

Coastal Villages Pollock (CVP) 135 Crew Members | 1 Catcher/Processor

Expected Annual Seafood Sales: $55 Million

Kwigillingok Mekoryuk Napakiak Napaskiak Newtok

Coastal Villages Longline (CVL)

Nightmute Oscarville

60 Crew Members | 3 Vessels

Platinum

2010 Seafood Sales: $6.6 Million

Quinhagak Scammon Bay Toksook Bay

Coastal Villages Crab (CVC) 30 Crew Members | 4 Crab Vessels

Tuntutuliak Tununak

2010 Seafood Sales: $15.8 Million

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2010 Community Service Center Staff Community Service Representatives

Nellie Abraham

Abraham Rivers

Anna Wiseman

Dayna Nash

Carol Anaver

Chris Dock

Bernadette Otto

Staci Igkurak

Chefornak

Kipnuk

Lisa Charles Newtok

Scammon Bay

Kipnuk

Cathleen Jimmie Newtok

Toksook Bay

Kongiganak

Adeline Tulik

Kwigillingok

Jennifer Anthony

Nightmute

Richard Tuluk

Chevak

Nightmute

Chevak

Carla David Eek

Nastasia Larson Oscarville

Napakiak

Daphne Nicholai

Steven Stone

Fannie Steven

Laura Evan

Goodnews Bay

Marianne Williams Eleanor Miller Mekoryuk

Ruth Bright

Napaskiak

Mary Hill

Oscarville

Hooper Bay

Quinhagak

Napaskiak

Nick David Jr. Tuntutuliak

George Hooper, Jr. Tununak

Mechanic-Welders

Theodore Brown Eek

Jacob Rivers Scammon Bay

Herman Beaver Lindgren Mathlaw Kwigillingok

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Mekoryuk

Lambert Kairaiuak Norman Pingayak Chefornak

Patrick Black Napakiak

Chevak

Jackie Larson Napaskiak

Albert Toniak

David Paul Napaskiak

Goodnews Bay

Paul Joe Jr. Hooper Bay

Isadore Anthony Nightmute

Albert John

Thomas Julius Toksook Bay

Kipnuk

Joe Joseph Kongiganak

Edward Enoch Tuntutuliak

Harry Lincoln Tununak


Community Service Centers Residents who are seeking Coastal Villages’ many services are welcome to visit our Community Service Centers (CSCs) and meet our staff. Our Community Service Representatives (CSRs) provide customer service for all Coastal programs, support our Mechanic/ Welders, and handle meeting and bunk space arrangements at our CSCs. Coastal's Mechanic/Welders (M/W) are available to provide small engine repairs, welding, and carpentry services. Many of the services CVRF provides are listed in our benefits catalog, which is provided at the beginning of each year to all residents and organizations in our communities. As an added benefit to our residents, our CSCs are available for CVRF board members, governing bodies, commercial fishers, search and rescue teams, school conferences, and funeral organizers to use for free when space is available. In an effort to ensure continuous coverage, we also employ on-call CSRs who provide coverage for our regular CSRs when they are on travel or leave. Please contact your local CSR or M/W for more information about our CSCs, and about the programs and services that Coastal provides with earnings from the Bering Sea.

Chefornak

Community Service Center

Goodnews Bay

Community Service Center

Kongiganak

Community Service Center

Napakiak

Fritz Willie Memorial CSC

Nightmute

Community Service Center

CSC Ground-breaking Ceremony Coastal Villages broke ground for the new CSC in Quinhagak on July 7, 2011

Toksook Bay

Community Service Center

Chevak

Joe Paniyak Memorial CSC

Hooper Bay

Community Service Center

Kwigillingok

Community Service Center

Napaskiak

Community Service Center

Oscarville

Community Service Center

Tuntutuliak

Community Service Center

Eek

Steven White Memorial CSC

Kipnuk

Community Service Center

Mekoryuk

Community Service Center

Newtok

Community Service Center

Scammon Bay

Community Service Center

Tununak

Community Service Center

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Coastal Villages Seafoods Tender Fleet In 2010, the CVS tender fleet consisted of eight tenders and two shuttle boats. The Kelly Mae, Camai, Wassilie B, Hawk, and Challenger-all CVS owned-provided salmon tendering services in the Kuskokwim Bay and River. The Elsie M, Seagull, and Eider rounded out the tender fleet as contracted vessels.

Kelly Mae: The Kelly Mae purchased 217,410 pounds of fish in Quinhagak and on

the Kuskokwim throughout the season. Prior to tendering fish, the vessel moved freight from Quinhagak to Platinum. After the tendering season was over, the vessel took a load of food from Platinum to Chevak, Newtok, Scammon Bay, and Hooper Bay.

Camai: The Camai purchased fish in Quinhagak for the majority of the season and then finished the season on the Kuskokwim, loading a total of 1,099,577 pounds. The vessel crew mastered offloading, and was able to buy and offload a fisher’s boat in less than five minutes. The Camai also made the largest delivery-over 200,000 pounds-to Platinum.

Wassilie B: The Wassilie B was generally used as a runner boat, carrying fish from

Quinhagak and the Kuskokwim to Platinum. It purchased 116,277 pounds of fish in Quinhagak and fished for Blue King Crab in the fall/winter of 2010.

Hawk: The Hawk spent most of the summer tendering in South Nunivak as well as

working various salmon openers. The vessel purchased 47,166 pounds of salmon and wintered in Seward.

Challenger: The Challenger worked a few openers on the river, purchasing a total of 5,026 pounds of salmon. The boat wintered in Platinum.

Seagull (leased vessel): The Seagull, a contracted tender out of Bethel, purchased 160,375 pounds of salmon on the Kuskokwim.

Elsie M (leased vessel): The Elsie M, also a contracted tender out of Bethel, purchased 102,047 pounds of salmon on the Kuskokwim.

Eider (leased vessel): The Eider was a contracted tender out of Dillingham and purchased 376,548 pounds of salmon in Goodnews Bay. A vessel naming contest was held to rename some of the tenders and shuttle boats. All 20 schools from Coastal's member villages participated in the naming contest for the following vessels: • Wassilie B, formerly the Insatiable • Hawk, formerly the Leo • Challenger, formerly the Mr. Alexie • Double E, formerly the Sunshine 10 • Coastal Mist, formerly the Sunshine 11 Each of the schools that participated received $500 for their student council, and each school that had a student selected as a winner received an extra $500 for student activities.

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In 2010, Coastal's salmon and halibut operations continued to be heavily supported by our pollock, crab, and cod operations in the Bering Sea.

Salmon Fishery Thanks to the hard work of our fishers and processors, our 2010 salmon season was a great success. Coastal’s goal is to always improve the efficiency of our operations, and pass on the benefits resulting from those improvements to our fishers. Our tender fleet service improved with the addition of the Wassilie B. The market for wild salmon was at an all-time high, and the fishers reaped the rewards of high salmon prices. The success of this season would not have been possible without the help of our commercial fishers who iced and bled their fish and handled and stored their catch properly before delivering to CVS. Almost 3.3 million pounds of salmon were harvested, with a total of $2,610,135 paid to commercial fishers, and at no time were any of our fishers placed on delivery limits.

Overall Salmon Volume, All Districts King 286,618 pounds Chum 1,355,128 pounds Sockeye 1,317,467 pounds Coho 363,315 pounds Total 3,322,528 pounds

Kuskokwim River: A total of 399 commercial fishers delivered 772,090 pounds of salmon in 1,297 deliveries. There were 16 commercial fishing openers on the Kuskokwim River.

Quinhagak: 241 commercial fishers recorded landings in District 4, delivering a total of 1,998,827 pounds of salmon in 3,603 deliveries. The commercial salmon season opened on June 15. Goodnews Bay: A total of 48 commercial fishers delivered 551,611 pounds of salmon in 540 deliveries in District 5. The commercial salmon season opened on June 28. Goodnews Bay Regional Processing Plant: Our Goodnews Bay Regional Processing Plant, located in Platinum, successfully processed all of the salmon delivered by our fishers (Quinhagak was acting only as a buying station at the dock). The plant produced over 740,000 pounds of salmon fillets-the most ever produced by CVS in a season. This allowed CVS to receive a better return in the market and operate more efficiently. CVS is looking to expand its capacity to fillet more fish in 2011. The housing capacity at the Goodnews Bay Regional Processing Plant was increased to accommodate 200 processors, up from 124 the previous year. Excess recreation areas were converted into dorm rooms, three more tents were set up, and four of the dorms that were originally in Quinhagak were moved to Platinum. In the future, Coastal may need to expand further in the future to accommodate more than 200 processors.

Quyana to the Community of Quinhagak: Coastal Villages would like to thank the residents of Quinhagak for tolerating all the challenges that went along with having an operating processing plant in their community in the past years. Quinhagak’s cooperation allowed Coastal to accept and process thousands of fish deliveries for many years. We ceased the operation of the Quinhagak processing plant due to challenges of efficiency, rapid tidal changes, and compromises that potentially affected the community's health. Going forward, Coastal will operate a buying station on the Quinhagak dock, despite continued challenges presented by extreme tidal changes that provide only small windows of opportunity for shallow-draft vessels to pick-up and deliver salmon at the buying station.

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Salmon & Halibut Highliners CVS would like to recognize the top five commercial fishers in both the salmon and halibut fisheries. The salmon highliners caught 160,185 pounds of salmon worth a total of $142,759, and the halibut highliners caught 89,374 pounds of halibut worth a total of $281,230! Way to go! Salmon Highliners: Esther Fox, James Merritt, Walter Johnson, Peter Matthew, Frank Matthew Halibut Highliners: Frank Pitka, Robert Pitka, Viva Smith, David Bill Sr., Samuel Shavings

Halibut Fishery The 2010 halibut season was delayed due to ice and poor weather conditions that persisted until early July. Although it was not easy for our fishers and processors, everyone pulled together in July and made the season a success with over 330,000 pounds of halibut caught. The price paid for halibut was set at a premium of $3.15 at both the South Nunivak tender and the halibut plants. The Hawk tendered at South Nunivak Island and was making frequent trips to the Toksook Bay, Mekoryuk, and Tununak halibut plants to offload. In 2011, Coastal will improve tendering for halibut by substituting the Wassilie B for the Hawk at South Nunivak. It is expected that our halibut plants will become buying stations only, with iced halibut being tendered to Platinum for processing. With continued financial support from our Bering Sea pollock, crab, and cod operations, Coastal has enabled our halibut fisheries to become an important part of our region's economy, particularly for our more northern member villages.

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Coastal Villages Seafoods: Processing Plants

Halibut Plant Chefornak

Halibut Plant Kipnuk

Halibut Plant Toksook Bay

Quinhagak Dock Quinhagak

Leona Wiseman

Halibut Plant

Shirley Fox

Halibut Plant Mekoryuk

Mekoryuk Plant Manager

Dora Mathew

Halibut Plant

Gregory Angaiak

Pat Cleveland

Salmon Buy & Fly

Chefornak Plant Manager

Kipnuk Plant Manager

Toksook Bay Plant Manager

Quinhagak Dock Manager

Hooper Bay

Tununak

Bethel

Cheryl Nukusuk

Hooper Bay Plant Manager

Oscar Amos

Tununak Plant Manager

Nick Souza

Bethel Operations Manager

Perry Hendricks

Goodnews Bay Regional Processing Plant Manager

Coastal's regional seafood plant in Platinum.

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of the Western Alaska Community Development Quota Program, Coastal would like to remember and honor some of the people who made it happen.

The Forefathers of CDQ

As we approch the 20-year anniversary

Harold Sparck – Chevak, AK (1944-1995): Mr. Harold Sparck was a long-time resident of Bethel with strong family ties to Chevak, and a leader in the CVRF region. Harold completed a year-long stay beginning in the fall of 1983 at the University of Virginia where he studied ocean policy. He returned to Bethel believing that western Alaskans should have a share of the fisheries in the Bering Sea; at that time the Bering Sea profits were going to Seattle and Japan with very little staying in Alaska. Harold worked tirelessly for the next eight years to garner support from western Alaskans, key players in various organizations and agencies, and the Alaska Congressional Delegation. His vision became a reality in the summer of 1991 when the North Pacific Fishery Management Council (NPFMC) adopted the CDQ Program. Alaska Senator Ted Stevens said of Harold: “He was recognized as the key person that had to be contacted whenever there was an issue that might impact the west coast (Alaska) people.” In June of 1998, we dedicated our Neqsurtet Nepiit newsletter in honor of Harold. In June of 2010, we honored Harold further by homeporting the C/P Northern Hawk-the first 100 percent CDQ-owned Bering Sea pollock cather/ processor-in Chevak, Alaska. The Northern Hawk has the capacity to provide millions of dollars and many jobs each year for our region, and for many generations to come. Quyana, Harold.

1971 Alaska’s Senator Ted Stevens proposes 200-mile Exclusive Economic Zone (EEZ).

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1976 Magnuson-Stevens Act (200-Mile Law) is enacted by Congress.

1989 1977-1989 The foreign fishing fleet off Alaska gives way to U.S. vessels, primarily owned by non-Alaska interests.

Senator Stevens introduces the first CDQ bill (S. 1900) in the U.S. Congress.

1990 The pollock inshore/offshore battle reaches a boiling point.

1991 Pollock CDQ (7.5%) approved as part of the Inshore/Offshore I Agreement, which allocated the other 92.5% of the Bering Sea pollock fishery among Seattle and foreign interests.


Coastal Villages Region Fund acquired its CDQ allocation from the Coastal Villages Fishing Cooperative (CVFC) in 1998 after CVFC's investment in Imarpiqamiut Partnership (the C/P Brown's Point) was dissolved. The State of Alaska recommended dissolution in 1997 after reviewing the financial status of CVFC in 1996. If the dissolution did not take place, the CDQ allocation for the CVRF region would most likely have been terminated. After CVRF was formed, the State of Alaska rescinded its recommendation to terminate the allocation.

Back Row: William Brown, Rose Thomas, Wassilie Bavilla, Peter Lupie, John Phillip Sr., Harvey Joe, Norman Cohen, Carl Dock Middle Row: Tommy Kusiak, Fred Phillip, David Bill Sr., Charlie Spud, Joe Paniyak Front Row: Stan Simanson, Monroe Kaganak

Louis Bunyan – Hooper Bay, AK (1935-1991): Mr. Louis Bunyan of Hooper Bay was part of the group from western Alaska that played a key role in helping create the CDQ program. He joined the efforts of Harold Sparck and Joe Paniyak to push for the idea of CDQ and attended many NPFMC meetings to voice his support for western Alaskans. Louis died just six months before the NPFMC adopted the CDQ program. Louis’ legacy lives on through our scholarship program. The scholarship portion of Coastal's 4-SITE program was dubbed the “Louis Bunyan Memorial Scholarship Program” in 1993. The LBMS Program has provided millions of dollars to hundreds of residents and will continue to do so for residents who seek higher education and training. Quyana, Louis. Joe V. Paniyak – Chevak, AK (1940-1997): Mr. Joe Paniyak of Chevak was also part of the western Alaska group that fought for the CDQ program. He worked with Harold Sparck and Louis Bunyan by attending many NPFMC meetings, even while facing an illness that made him exhausted after each day. He is remembered for his invaluable vision and unwavering dedication to western Alaska. In October 2008, CVRF dedicated the CSC in Chevak as the "Joe Paniyak Memorial Community Service Center." This building benefits the residents of Chevak by providing mechanic/welder services, meeting space, and many other great CVRF services-services that would not be available without our CDQ pollock, crab, and cod. Quyana, Joe.

1992 Coastal Villages Fishing Cooperative (CVFC) is established as a for-profit corporation to represent the CVRF region.

The first CDQ pollock are harvested.

With approval from the State of Alaska, CVFC and Golden Age Fisheries form Imarpiqamiut Partnership (IP) to buy the catcher/processor Brown’s Point. Ownership is 50-50 but CVFC profit share is 35% during first 4 years.

1993 CVFC contributes its CDQ pollock to IP for credit of about $4 million (about $38 per metric ton). C/P Brown’s Point is valued at $15 million and IP assumes $11 million of debt in the deal.

1994

1993-1994 CVFC pollock CDQ continues to earn only $38 per metric ton.

1995 Multi-Species CDQ Established; Halibut and Sablefish IFQ created. CVFC pollock CDQ is reduced by 7.4% due to poor financial performance.

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Knowledge and education in our villages is very valuable to all villages. Decisions are made with no information on the potential dangers. We have been weakened by certain groups, from Greenpeace to AMCC, because of our limited knowledge. It’s hard making decisions when you have no information to go with. We have done things immaturely in the villages without the facts. -Hultman “Ike” Kiokun, Mekoryuk

Wassilie Bavilla – Quinhagak, AK (1951-2010): Mr. Wassilie Bavilla of Quinhagak is remembered for his work with Harold Sparck and others who pushed for the creation of CDQ. He played a key part in receiving a $150,000 grant from the Administration for Native Americans through the Bering Sea Fishermen’s Association. This grant paid for a scientific study that verified that Quinhagak, and other coastal communities nearby, could have a commercial fishery. Wassilie then worked with others to petition the NPFMC to allow western Alaska coastal communities to participate in the Bering Sea fisheries. Wassilie served as the CVRF board member from Quinhagak for most of CVRF's existence up until January 2010, even while dealing with illness. CVRF has honored his memory by naming one of our tender vessels, the Wassilie B, after him, and will further honor him by naming the Quinhagak Community Service Center, being built in 2011, after him. Quyana, Wass’. Steven “Angivran” White – Eek, AK (1932-2006): Mr. Steven White of Eek was one of the founding fathers of CVRF who played a key role in our turnaround in 1999. He worked hard and showed a lot of compassion for his community and the region. He was one of the few men who understood Bering Sea pollock, crab, cod, and other multi-species, and how the CDQ harvest allocation could benefit our communities. He served his community for nearly a decade, working toward finding ways to bring support to local fishers for the benefit of the people. His

1996 The CDQ Program is officially added to the Magnuson-Stevens Act, which requires CDQ in all Bering Sea fisheries, including crab. Harold Sparck is memorialized in federal statute in the title of the CDQ program.

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1997 A consultant is hired by the State of Alaska to review the financial status of CVFC’s IP and C/P Brown’s Point investment.

The State of Alaska finds that CVFC is not receiving royalties from the IP, that the credited royalties are well below the market rate, and that CVFC will not meet its 1996-1998 Community Development Plan milestones and goals.

1998 The State of Alaska recommends terminating CVFC’s CDQ allocation unless the partners and key creditors dissolve the IP.

Crab CDQ fishing begins. CVFC pollock CDQ is reduced by an additional 12% due to continuing poor financial performance.


wisdom and guidance allowed the company to grow into what it is today. CVRF honors his memory with the dedication of the Eek CSC as the "Steven 'Angivran' White Community Service Center." Quyana, Steven. Hultman “Ike” Kiokun – Mekoryuk, AK (1946 -2010): Mr. Hultman Kiokun of Mekoryuk will be remembered for his ability to provide a well-rounded and balanced perspective that helped us move forward and face challenges together. His cheerful demeanor complimented his proven communication skills and made him a valuable contributor both for the region and the company. Quyana, Ike. Senator Ted Stevens – ALASKA (1923-2010): U.S. Senator Ted Stevens shaped Alaska into what it is today. Many will remember what he did for Alaska as a state, and we will remember his work to ceate and support CDQ. He was quick to give credit back to those involved in the CDQ program who worked hard, and made his success their own success. ALASKANIZATION of the Bering Sea would not have been possible without "Uncle Ted." We honor his memory by continuing our efforts to reinvest in the Bering Sea while bringing millions of dollars in economic activity to Alaska. Quyana, Senator Ted Stevens-a true Alaskan hero.

1998 Coastal Villages Region Fund (CVRF), a non-profit organization, acquires our region’s CDQ allocations from CVFC; the State of Alaska rescinds proposal to terminate the allocation after CVFC is dissolved.

CVRF grants $1,398,468 to CVFC to bring affairs with IP to a conclusion.

The American Fisheries Act is enacted increasing the pollock CDQ allocation to 10% while awarding the other 90% of the Bering Sea pollock fishery to primarily non-Alaskan interests in the form of individual cooperative quotas and limited entry for vessels and processors. AFA also creates CDQ loan program to allow CDQ groups to buy pollock quota.

1999 CVRF chooses Tyson Seafood’s Group and Westward Seafoods as harvesting partners for the 1999-2000 pollock CDQ allocation period.

The National Academy of Sciences completes a review of the CDQ program and issues supportive recommendations. CVRF subsidiary, Coastal Villages Seafoods, LLC (CVS) is formed.

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Program Services Scholarships The Louis Bunyan Memorial Scholarship Program provides matching funds for our residents to attend universities and trade schools in the pursuit of higher education. Educating our residents helps ensure that Alaskans will continue to play an important part in managing BSAI fishery businesses. In 2010, Coastal awarded a total of $441,650 in scholarships to 119 residents. The deadline to submit applications for the fall semester (August – December) is the end of May, and the spring semester deadline (January – July) is the end of October. Residents are strongly encouraged to apply for this program. Pollock Provides for our residents who choose to seek higher education as a step toward a meaningful career-hopefully with Coastal Villages and its many subsidiaries.

Internships The internship program at Coastal Villages provides a great opportunity for residents to work in our offices and gain valuable experience in many different career fields. In 2010, seven interns worked for us, learning valuable insights into the business world, and earned $31,800. The internship program is an excellent chance to enter into the business world, and we strongly encourage people to apply for intern positions in areas complimentary to their desired career path. In 2010, two interns became fulltime employees at CVRF: Kristina Nelson of Napakiak, and Brentina Lincoln of Toksook Bay.

Training The training program provides tuition and assistance to residents to attend training programs that last from a few days up to 12 weeks. A total of 54 residents were awarded $114,803 in 2010 for training opportunities. There is no deadline to submit applications for this program. Residents and local organizations who are seeking short-term training opportunities to advance their knowledge or certifications are encouraged to apply for this program. Areas that residents attended training for in 2010 include: Construction Equipment, Hazwopper, Certified Nurse Assistant, Praxis, and Driver’s License.

1999 March 1999 The State of Alaska/NMFS add villages to the CDQ program, including Napakiak, Napaskiak, and Oscarville.

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Summer 1999 CVS operates the Quinhagak salmon plant on a limited basis with a hired tender fleet, buying 715,000 pounds of salmon.

June 1999 The first CDQ Halibut landing is made in Area 4E. Mekoryuk and Toksook Bay land about 33,000 pounds.

2000 November 1999 CVRF launches an on-going, village-based recruiting program in all 20 villages to provide work for our residents.

CVRF subsidiary, Coastal Villages Pollock, LLC (CVP) is formed. CVRF pollock CDQ is increased by 9.1% in recognition of governance and financial improvements.


2010 Employment Program Summary Company

Employment Work, Fish, Hope-these are the words that are now imprinted below our company logo, which was approved by our Board of Directors in 2010. Residents who want to work are given hope by the opportunities that CVRF has available through our multiple in-region offices, salmon and halibut processing plants, fishing tenders, freight barges, crab boats, longline vessels, and catcher/processors. These are true Alaskan jobs that we continuously aim to fill with our residents.

Employees

Earnings

CV Seafoods CV Crab CV Pollock CV Longline V-Wassilie B V-Challenger V-Camai LLC V-Hawk LLC V-Kelly Mae LLC American Seafoods Arctic Storm

510 36 77 84 7 4 14 10 21 12 1

$2,996,390 $2,594,438 $1,781,516 $1,675,676 $250,612 $32,850 $342,574 $188,290 $303,009 $224,153 $50,741

Totals

776

$10,440,250

In 2010, a total of 776 people earned $10.4 million through CVRF’s employment program-an increase from 634 people who earned $7.8 million in 2009; 580 people who earned $4.4 million in 2008; and 490 people who earned $3.4 million in 2007! The increase in the number of jobs and earnings by participants in the employment program is a testament to the ALASKANIZATION of the Bering Sea.

2000 January 2000 Morgen Crow becomes the second executive director since the inception of CVRF and the CDQ program.

CVRF replaces Tyson Seafoods with new partners: American Seafoods and Highland Light. The AFA’s U.S. ownership requirements open the door for Coastal to purchase 20% of American Seafoods.

Summer 2000 New Coastal halibut plants are opened in Kipnuk and Chefornak.

October 2000 Coastal purchases an additional 2% of American Seafoods.

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Youth Leadership Coastal Villages understands the importance of supporting and encouraging our youth. Just like any other muscle, the brain thrives with exercise. To promote a variety of youth activities and opportunities, the youth leadership program offers donations and contributions, sponsors trips to the AFN Elder and Youth Conference and to the Alaska College Fair in Anchorage, and provides the Youth-To-Work program. Below is a brief description of the opportunities available to region youngsters. Donations & Contributions: Coastal Villages believes in the importance of the healthy development of our youth. We provide matching funds for activities that engage our kids in skill- and social-building activities. Coastal Villages awarded $42,851 in Youth Leadership funds for the following: basketball camps, vessel naming contest, cultural activities, choir trips, fun festivals, and radio station sponsorship. AFN Elder and Youth Conference: Eighteen youngsters attended the 2010 AFN Elder and Youth Conference in Fairbanks. These kids interacted with elders and youth from all over the state of Alaska. They also had a chance to meet with, and thank, the full board of directors in Fairbanks. College Fair: Seventeen youth attended Coastal’s first-ever sponsored College Fair trip to Anchorage in October. Many universities and training institutions from Alaska, Hawaii and the Lower 48 set up 137 booths for young people to visit and learn more about. They also had a chance to tour the University of Alaska Anchorage, Career Academy, and Alaska Pacific University. This trip boosted the morale and experience of the youth who participated in it. Even our own chaperones from the region were inspired to consider signing up for higher education courses. The youth were encouraged to share their experiences with their parents and peers when they returned home. Some of the concepts they learned about and shared with their friends and family are: the different opportunities that are possible beyond high school; preparation for higher education starts as early as the 6th grade; it may be challenging, but it is worth it at the end; how colleges operate; the difference between public and private colleges; scholarships may not always cover all necessary expenses; and, it is never too late to start or go back to school.

2001 February 2001 20 Coastal plant managers, foremen, and leads receive training on proper fish processing and processor machinery, and receive state approval for safety and sanitation.

24

June 2001 The North Pacific Council CDQ Policy Committee issues recommendations on changes to the roles of NMFS and the State, the CDQ allocation process, and the administration of the CDQ Program.

2002 Summer 2002 The North Pacific Council recommends changes to the CDQ Program based on its review of the NAS CDQ study, the CDQ Committee report, CDQ legislation proposed by Representative Don Young, proposed State regulations, and public comments. Little of NPFMC’s motion is ever implemented. Halibut plants open in Hooper Bay and Toksook Bay. Coastal increases its ownership in American Seafoods from approximately 22% to 39%.


Coastal Villages believes in the importance of the healthy development of our youth. We provide matching funds for activities that engage our kids in skill- and social-building activities.

Youth-To-Work: The Coastal Youth-To-Work (YTW) program is aimed at providing valuable work experience for interested teenagers, ages 1419, who are in high school or who have just graduated. In 2010, a total of 249 youth were hired to the YTW program, earning a total of $56,612. Participants worked up to four weeks during the summer, delivering halibut to elders, helping with North Cape supply deliveries to the communities, and helping a total of 540 elders with household chores, repairs, and other tasks. T-shirts were given out to youth and elders who participated in the program, and were well received by all. On the last day of the four week session, the youth celebrated with a picnic for all participants.

CDQ Project Fund The CDQ Project Fund serves as an economic resource to CVRF communities by funding community development projects, and can also be used as matching funds for grants. The Fund provided $500,000 in spending overall and the rules were streamlined to allow community governing bodies more flexibility in supporting local projects. A revision was made in 2010 requiring any remaining funds not spent by the end of the year to be donated by the local governing body to either a local search and rescue group, or a local coordinated youth group.

2002 December 2002 With state approval, Coastal leases its CDQ pollock to American for $325 per metric ton. Coastal enters a partnership with BBEDC, CBSFA, YDFDA, and US Seafoods for multi-species CDQ harvesting.

2003 Fall 2003 Coastal’s Marine Safety Program is established.

Coastal provides buoys for marine safety, rescue, and prevention to 9 Communities.

2004 First quarter of 2004 Coastal fully funds a new program with the Alaska Business Development Center in all twenty villages to provide free tax preparation assistance, resulting in $1,673,000 in tax refunds.

May 2004 The Grand Opening of Scammon Bay’s Community Service Center is celebrated. It is the first of its kind in the CVRF region.

25


Marine Safety The marine safety training program provides an important service for Coastal’s community residents. A selection of Community Service Representatives are trained and certified at AVTEC in Seward, with assistance from AMSEA (Alaska Marine Safety Education Association). Our certified CSRs conduct training sessions in our communities to help prepare residents for the challenges they may face in the waters of western Alaska. Dozens of commercial halibut and salmon fishers are also given a marine safety kit and lifejacket each year. Marine Safety Training: Providing marine safety training to residents can save lives. The instructors train residents in areas such as: preparation for emergencies, cold water survival, sea survival, land survival, hypothermia treatment, risk assessment, and management. A handful of region staff conducted marine safety training in Goodnews Bay, Napaskiak, Nightmute, Chevak, and Hooper Bay. Safety Kits & PFDs: In 2010, a total of 75 safety kits and 100 lifejackets were provided to commercial salmon and halibut fishers. Each safety kit included: a first-aid kit, electronic flares, fire starters, a flashlight, a water-proof carrying case, a fire extinguisher, water-proof matches, a signaling device, and a compass.

Heating Oil In 2010, 574 drums were available to Coastal's 20 communities from January through April, and from October through December. In order for the communities to participate in the program, the governing body of the community must adopt simple rules and agree to select households who are most in need of support. In December of 2010, the CVRF Board of Directors approved an additional 637 drums of heating oil for 2011-the highest amount of drums since the Pollock Provides Heating Oil program began in 2008. This real, tangible warmth is made possible by the CDQ program and Coastal’s success in maximizing the dollars generated by our resources in the Bering Sea. Pollock Provides!

2004 June 2004 14 fishermen participate in Coastal’s CDQ halibut fishery, catching 20,322 pounds of halibut and delivering to a buying station southwest of Nunivak Island. This marks the first time halibut is “tendered” since the introduction of IFQs and CDQs.

26

2005 Summer 2004 Ciunerkam Tangruarutii (CT) meetings are held in all 20 communities, allowing CVRF to obtain community feedback on future projects, current efforts, and opportunities for improvement.

The Crab CDQ increases from 7.5% to 10% as the other 90% of the Bering Sea crab fisheries are awarded as IFQs and IPQs.

CVS is awarded $100,000 in matching grants to assist with the purchase and installation of ice machines for the 2006 season to increase salmon quality.

February 2005 The Coastal Community Service Center is Eek is completed.


Tax Assistance The tax assistance program, provided by Coastal Villages, helps thousands of our residents file their tax returns with the IRS each year. The demand for such services in rural Alaska is high, and Coastal is glad to work with the Alaska Business Development Center in this endeavor each year. In 2010, 1,497 completed returns, benefitting 3,402 of our residents, resulted in total tax refunds of $2,627,792! A total of 214 elders benefitted from this program, as well as 354 commercial fishers. The CVRF region continues to be the largest area served by ABDC in Alaska in the total amount of returns and refunds.

Collaborative Applied Research Coastal supports fisheries research projects that serve our entire region and ultimately help commercial fishers who deliver their fish to Coastal Villages. Over $220,000 was provided to support projects run by the Native Village of Kwinhagak, Kuskokwim Native Association, Takotna Tribal Council, and the State of Alaska Fish and Game division. Fish and Game uses the data from the projects for fisheries management purposes.

2005 Summer 2005 CVS salmon and halibut plants employ 368 individuals, primarily from our villages. 209,000 pounds of halibut and 2.6 million pounds of salmon are harvested. The F/V Kelly Mae is put into service tendering salmon in the Kuskokwim River, and hauling freight for Coastal during breaks in fishing.

2005 is believed to be the year that Coastal became our region’s largest private sector employer.

September 2005 The Rasmuson CDQ Blue Ribbon Committee report is delivered to Alaska’s Governor, recommending significant changes and improvements to the CDQ program, including greater autonomy for CDQ groups and a settlement of allocation disputes.

2005-2006 The CDQ Loan Program is expanded by the U.S. Congress from $25 million to $200 million in loan authority.

27


Outreach Governing Body Meeting: In February, Coastal held a meeting with the governing body leaders and administrators from our member villages. Participants were given an overview of the CDQ Program, Coastal Villages, and the CVRF programs available to our communities and residents. The Governing Body Council presidents also signed for, and received, their community’s CDQ Project Funds and resolutions for the 2010 Pollock Provides Heating Fuel program. We gathered recommendations on refining existing programs and identifying potential programs for the future. Fisheries Management: Community Service Representatives from our villages became more involved in the processes of Fisheries Management by attending the meetings of the North Pacific Fishery Management Council, the State of Alaska Board of Fisheries, and other regulatory agencies throughout the year. Voter Registration: Our Community Service Representatives helped our region residents project a larger voice in the 2010 election season by becoming State of Alaska Voter Registrars. Through this effort, CSRs helped to register 230 residents for the 2010 general elections. By the end of 2010, our communities had 4,386 registered voters. Region School Sports: Coastal Villages gave support to three region basketball teams (Napaskiak Hawks boys, Chevak Comets boys and girls) competing in the annual State Championships. An added bonus was the visit of former NBA star, Spud Webb, who met with all three teams and was given partial credit in inspiring the Napaskiak Hawk boys to win the State High School Championship. Internet Cafés: New computers were installed in our CSCs to assist region residents in accessing different social and educational services through the internet. Community Service Representatives are available to assist residents with navigating through these websites. North Cape Supplies: The freezer/longliner North Cape was dispatched to Coastal's 20 member villages with fish camp supplies such as tarps, knife sharpeners, and lumber, and with other life staples including pampers, tissue, and paper towels. The supplies were well received by young and old alike.

2006 CVRF establishes “Project Haullywood,” delivering 318 tons of spruce-beetle wood to 9 CVRF communities as an alternate heating resource. The Coastal CDQ Project Fund provides trail markers and survival shelters, allowing safer travel between Kipnuk, Kongiganak, Kwigillingok, Tuntutuliak, and Napakiak.

28

CVRF begins the planning and permitting process for the massive new Goodnews Bay Regional Processing Plant in Platinum.

Summer 2006 The Coastal CDQ Project Fund pays for clean-up projects in member villages done by local youth residents. Coastal provides for renovations to existing structures in 3 communities, boardwalk improvements in 2 communities, and financial support to extend the Quinhagak runway.

July 2006 Congress enacts major changes to the CDQ program based on the Rasmuson Blue Ribbon Report, reducing federal and state oversight and creating a CDQ panel to administer the program. The new law mandates a 10-year review of the performance of all six CDQ groups with the first Decennial Review in 2012.


Voting Power: Coastal's 20 member villages have 4,386 registered voters-these important voters helped make a crucial difference in the 2010 general election.

Vessel Naming Contest: Coastal Villages reached out to all our schools in the region by conducting a vessel naming contest for our fleet of vessels. Winning students each received a laptop computer, and their school received $500. Winning students travelled to the Anchorage office and met the Executive Board and staff of Coastal Villages. The winning students were: • Miles Hill of Quinhagak • Stephen Maxie of Napaskiak • Janelle Carl of Kipnuk • Fannie Bright of Goodnews Bay • Rhiannon Ayuluk of Chevak CVRF Website: A new and updated Coastal Villages website was launched that makes it easier for region residents to learn about the company, access newsletters, and find information about our scholarship, internship, training, and employment opportunities. CVRF Benefits Catalog: Coastal Villages released its second company benefits catalog that describes all the programs and benefits available to our region residents, and made possible by the Community Development Quota Program. The benefits catalog also provides contact information for each program and an employment application.

2006 September 2006 The new CDQ Panel meets on September 6, 2006 in Anchorage and agreement is reached to form it as a non-profit corporation with the legal name, “Western Alaska Community Development Association” (WACDA).

October 2006 CVRF sponsors 20 youth participants at the First Alaskans Institute/Alaska Federation of Natives Elders and Youth Conference.

2007 2006-2007 Coastal pays over $30 million to Seattle owners for significant crab harvesting and processing rights as well as the crab vessels Arctic Sea, North Sea, and Bering Sea

Construction of the Goodnews Bay Regional Processing Plant begins. Originally scheduled to take 5 years to complete, the CVRF board of directors pushes for an accelerated timeline of 3 years.

29


The Northern Hawk is 341 feet long, has 135 crew members, pays about $10 million a year in crew wages, harvests over 100 million pounds annually, and is the first fully Alaskan-owned pollock catcher/processor.

Time Machine: News from 2011: In early 2011, Coastal Villages acquired 50 percent of BSAI LLC, which is a 50-50 joint venture between Coastal and Siu Alaska (wholly owned by Norton Sound Economic Development Corporation). BSAI purchased inshore pollock fishing rights and vessels from Wards Cove Packing Company.

Alaskan Ownership 2010 was a year of transition for the Coastal Villages region. Already significant owners of BSAI fishing operations, Coastal made the leap from passive K-1 investor to active, managing owner in two additional fisheries. This leap has had a significant impact on the ALASKANIZATION of the Bering Sea/Aleutian Islands (BSAI) fisheries, and is increasing our ability to bring Work, fish, and hope to our region residents. We are the largest private sector employer in our region and additionally have over 250 crew positions aboard our vessels in the Bering Sea. We have moved management, accounting, HR, purchasing, legal, and regulatory jobs to our Anchorage headquarters, jobs that for decades prior were based in Seattle.

2007 Project Haullywood delivers 750 tons of wood to 16 CVRF communities. CVRF collaborates with Alaska Village Electric Cooperative (AVEC) to build 3 install turbines in Toksook Bay.

30

CVRF/CVS completes construction of a new halibut plant in Tununak. CVRF completes Community Service Centers in Mekoryuk, Chefornak, Nightmute, Tununak, Chevak, Goodnews Bay, Napaskiak, and Napakiak.

2008 CVRF provides 1,200 tons of firewood to all 20 of its communities, marking the end of Project Haullywood. The “Pollock Provides Heating Oil” program provides heating oil for residents in CVRF communities—65 households receive a drum of oil in 2008.

Coastal’s CDQ Project Fund pays for more trail survival shelters and markers, building renovations, community clean up events, dump site renovations, boardwalk construction, law enforcement team supplies, 4th of July workers, potlatches, Tribal COPS and community multi-use facility matching funds.


Coastal Villages Pollock The birth of the CDQ program had its origins in the pollock fishery. Catcher/processors, owned by people from other countries, prowled the waters off the Alaska coast, raking in millions of tons of pollock that were turned into millions of dollars. Fifteen years after Congress enacted the Magnuson-Stevens Act, and seven years BEFORE the fishery was Americanized, the CDQ program was created. Through the CDQ program, Coastal Villages has steadily increased our share of the BSAI pollock fishery. Beginning with our initial investment in American Seafoods in early 2000, and progressing through ever-growing ownership of the company, we graduated from being a partner in the pollock fishery to owning and operating our own vessel. In early 2010, Coastal Villages parted ways with American Seafoods. In exchange for the sale of our interest in the company, we acquired one percent of the BSAI directed pollock quota and the 341-foot catcher/processor, Northern Hawk, in addition to several other things (see also the section on Coastal Villages Longline). The Northern Hawk was the longest and most powerful of the American Seafoods fleet. During the summer of 2010, we put the Northern Hawk in dry dock to revamp the factory-installing new, state of the art freezers, packaging equipment, a water maker, and more. Then in January 2011, the vessel left to fish “A” season pollock. Under the new Coastal Villages pollock management team, we not only began catching our newly-acquired directed fishery quota and our own CDQ, but we also entered an agreement to harvest Yukon Delta Fisheries Development Association's pollock CDQ! And we put many of our region residents to work on the vessel! Alaskanization means that pollock can provide even more!

Salmon Bycatch In 2010, the Northern Hawk harvested a total of 304 Chinook Salmon as bycatch. Through July 2011, the vessel has only harvested a total of 171 Chinook Salmon. All Chinook salmon taken by Coastal Villages as bycatch is donated to the Prohibited Species Donation Program and is distributed to food banks throughout the United States of America.

10000 8000

5.0%

6000

Percent

4.5%

4000

4.0%

2000

3.5%

0 1990

3.0%

2000

2010

(source: US Census)

2.5%

CVRF Member Village Population

2.0% 2009

2010

2011

Year

Growth in CVRF Pollock Rights We have increased our stake in the Bering Sea pollock fishery by acquiring fishing cooperative rights.

2009 CVRF opens the Goodnews Bay Regional Processing Plant in Platinum and announces “no limits” on processing/tendering capacity for our salmon fishermen.

Coastal takes over management of its 100% owned crab fleet, moving management from Seattle to Alaska.

While rural populations elsewhere in Alaska are declining, the population in Coastal’s 20 member villages has been increasing. In fact, there were 9,373 Permanent Fund applicants from our communities in 2010, and the 2010 Census shows an increase in population of over 9 percent since the year 2000. Coastal Villages is using the resources of the Bering Sea to provide our people with hope through working and fishing. In doing so, we can also contribute to the economic viability of our communities.

2010 May 2010 Coastal redeems its stock in American Seafoods in exchange for pollock fishing rights, the pollock catcher/processor Northern Hawk, pacific cod fishing rights, and 3 cod freezer/longliners: the Lilli Ann, Deep Pacific, and North Cape.

2011 Coastal joins NSEDC in acquiring in-shore pollock quota; pollock trawlers Alaska Rose, Bering Rose, Destination, Great Pacific, Messiah, Ms Amy, and Seawolf; and the crab vessel, Bulldog from Ward’s Cove/the Brindle Family.

ALASKANIZATION Coastal will be the first Western Alaska CDQ group since the CDQ program began in 1992 to catch its pollock, crab, and cod CDQ allocations aboard vessels that we own and operate ourselves.

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Our Four crab vessels

Coastal Villages Crab

are collectively 478

Coastal's crab operation is second only to pollock in revenue generation. Coastal fully owns and operates four crab boats in the king crab, opilio, tanner, and blue crab fisheries. The Wassilie B also provides tender service to halibut and salmon fishermen in our region during the summer.

feet in length, have 32 crew members, pay around $3 million a year in crew wages, and catch almost 10% of the entire Bering

Coastal now manages our crab business from our Anchorage headquarters. Since taking over direct management in 2009, Coastal has not only made record returns, but more than tripled the number of region residents working aboard our crab vessels. During 2010, there were 12 residents from Coastal’s member villages working on our vessels. These crew members earned an average of $24,000 each, and comprised one-third of the entire crew roster aboard the four vessels.  Our crew are learning the ropes from seasoned veterans like Capt. Bob Thelen, seen in the bottom left photo during an offload with CVRF Executive Director, Morgen Crow. As crew openings occur on our crab vessels, priority goes to qualified residents from our villages, particularly residents who have completed a season aboard a tender or at our in-region seafood plants.  One advantage of owning and managing vessels is that Coastal sets the hiring policies. 

Sea king crab

Quyana to the crew members from our region who are disproving the mistaken belief in Seattle that western Alaskans are not up to the rigors of Bering Sea commercial fishing. We are not the "Deadliest Catch," we are the "Yupik-est Catch!"

and opilio crab

Pollock Provides. Crab does too.

fisheries.

Coastal Villages Crab CVRF Ownership

Length

Crew

F/V Arctic Sea

100%

135

8

Isiah Ivon, Kongiganak Nathan Lake, Chevak Brandon Nanok, Chevak Patrick Patrick, Chevak

F/V Bering Sea

100%

110

7

Lawrence Phillip, Kongiganak

F/V North Sea

100%

126

8

Bryson Agimuk, Chevak Kenneth Beaver, Kwigillingok Norman John, Toksook Bay Chris Roberts II, Chevak Darren Tomaganak, Hooper Bay

F/V Wassilie B

100%

107

8

Luther Aguchak, Scammon Bay Thomas Jones, Chevak

Vessel

32

Region Crew Members


Our Three longline vessels are collectively 391 feet in length, have 62 crew members, pay about $4 million a year in crew wages, and harvest over 26 million pounds annually.

Coastal Villages Longline Vessel F/L Lilli Ann F/L Deep Pacific F/L North Cape

CVRF Ownership

Length

Crew

100% 100% 100%

141 125 125

22 20 20

Coastal Villages Longline Our investment in American Seafoods (see also the section on Coastal Villages Pollock) included 46 percent ownership in three freezer longline vessels. As part of the redemption of our ownership in the company, we acquired 7.61 percent of the BSAI freezer longline Pacific cod allocation, and 100 percent ownership of the three freezer/longline vessels previously owned by American Seafoods. The three vessels, ranging in length from 125 feet to 141 feet, are currently operating under a management contract with Pacific Longline Company (a subsidiary of American Seafoods). As we move along in our partnership with Pacific Longline Company, we are learning the nuances of the fishery in preparation for taking over management of the vessels. This represents just one more bend in the river towards the Alaskanization of the Bering Sea/Aleutian Islands fisheries. In 2011, our longline subsidiary will have between $15 million and $20 million is sales. Cod Provides!

33


The Importance of Pollock

Community Chefornak Chevak Eek Goodnews Bay Hooper Bay Kipnuk Kongiganak Kwigillingok Mekoryuk Napakiak Napaskiak Newtok Nightmute Oscarville Platinum Quinhagak Scammon Bay Toksook Bay Tuntutuliak Tununak Grand Total

CVS Fishers 23 2 35 23 7 22 12 4 29 29 22 7 5 1 4 74 0 33 40 28 400

Coastal Employees & Crew 48 90 18 12 81 35 57 38 30 21 26 40 10 6 7 65 46 73 8 75 786

2010 Total

CVS Fisher Earnings

Coastal Employee & Crew Earnings

14 85 18 110 1 54 6 41 27 115 7 64 11 80 12 54 5 64 6 56 9 57 10 57 3 18 1 8 3 14 12 151 4 50 9 115 7 55 7 110 172 1,358

$72,346 2,350 310,732 310,181 20,031 46,190 99,098 21,129 392,003 75,647 32,514 22,173 70,255 1,277 38,434 884,282 0 370,133 212,756 53,651 $3,035,182

$172,532 408,167 125,189 102,177 223,090 236,919 335,137 197,297 248,351 121,023 128,189 159,500 86,197 27,259 102,060 304,339 239,907 343,099 58,065 210,134 $3,828,630

Scholarship & Training Recipients

Scholarship & Training Awards $41,331 79,727 1,653 9,645 98,929 21,673 56,497 36,893 8,747 14,396 18,085 26,672 8,241 650 4,801 40,967 12,113 25,949 28,700 20,783 $556,453

Employment opportunities and community programs, as seen above, are funded by earnings generated from fishing in the Bering Sea, particularly from the pollock fishery. Pollock continues to pay for the majority of Coastal's programs, including the Coastal Villages Seafoods salmon and halibut operations in our region. 34

2010 Total 286,208 490,244 437,574 422,003 342,050 304,782 490,732 255,319 649,101 211,066 204,527 208,345 164,692 3,447 145,296 1,229,588 252,020 739,181 299,521 284,568 $7,420,264


Statement of Financial Position Coastal Villages Region Fund and Subsidiaries: Consolidated Statements of Financial Position December 31, 2010 and 2009 Assets

2010

2009

23,107,086  

39,187,615  

—    

3,017,493  

3,795,688  

3,383,776  

2,846,987  

78,274  

155,329  

80,902  

1,498,870  

324,329  

889,516  

876,594  

Current assets: Cash and cash equivalents

$

Investments in marketable securities Trade accounts receivable, less allowance for doubtful accounts of $209,952 and $53,505 in 2010 and 2009, respectively Other accounts receivable Deposits Deferred operating costs and prepaid expense Inventory Notes receivable, current portion, net

13,462  

1,345,208  

32,306,938  

48,294,191  

212,000  

82,000  

31,757,526  

31,757,526  

Property, plant, and equipment, net

118,215,877  

21,410,089  

Investments in fishing rights

121,405,130  

34,610,105  

—    

(1,280,869)

$

303,897,471  

134,873,042  

$

4,491,681  

1,445,763  

2,334,277  

—    

Security deposits

29,259  

22,252  

Deferred revenue

430,144  

28,301  

Accrued payroll liabilities

768,895  

502,547  

Notes payable, current portion

134,046  

172,738  

8,188,302  

2,171,601  

42,859,099  

42,913,877  

3,979,583  

—    

—    

28,815,234  

55,026,984  

73,900,712  

248,870,487  

60,949,330  

—    

23,000  

248,870,487  

60,972,330  

303,897,471  

134,873,042  

Total current assets Restricted cash Notes receivable, excluding current portion

Investments in fishing affiliates Total assets Liabilities and Net Assets Current liabilities: Accounts payable and accrued expenses Income tax payable

Total current liabilities Notes payable, excluding current portion Deferred income taxes Accumulated distributions of fishing affiliate in excess of investment Total liabilities Net assets: Unrestricted net assets Temporarily restricted net assets Total net assets Commitments and contingencies Total liabilities and net assets

$

See accompanying notes to consolidated financial statements.

35


Statement of Activities Coastal Villages Region Fund and Subsidiaries: Consolidated Statement of Activities Years Ended December 31, 20010 and 2009

Seafood sales

$

2010

2009

Total

Total

31,134,471  

18,927,153  

17,827,365  

15,209,314  

1,839,664  

1,588,427  

Total cost of sales

19,667,029  

16,797,741  

Gross profit

11,467,442  

2,129,412  

13,351,282  

15,050,264  

IFQ lease fees

200,989  

6,367,542  

Interest income

580,973  

527,764  

Investment income

278,194  

558,772  

1,186,284  

976,938  

561,279  

424,411  

97,005  

165,638  

Landing tax contributions

—    

23,000  

Grants

—    

—    

Cost of sales: Cost of goods sold Shipping and handling costs

Other revenue, gains, and other support: CDQ royalties

Access fees Rent Community Service Centers

Gain (loss) on disposal of assets

201,698,599  

(1,306,408)

109,800  

252,981  

—    

—    

218,064,405  

23,040,902  

Programs and projects

15,881,305  

23,940,838  

Other operating expenses

12,514,626  

5,135,761  

General and administrative

7,422,997  

6,124,998  

Income tax expenses

6,313,860  

—    

42,132,788  

35,201,597  

187,399,059  

(10,031,283)

499,098  

2,363,106  

187,898,157  

(7,668,177)

60,972,330  

68,640,507  

248,870,487  

60,972,330  

Other Net assets released from restriction Total other revenue, gains, and other support Indirect expenses:

Total indirect expenses Change in net assets before equity in income of affiliates Equity in income of affiliates Change in net assets Net assets at beginning of the year Net assets at end of the year

$

See accompanying notes to consolidated financial statements.

36


General and Administrative Expenses Cash Generating Revenue CDQ Royalties 28.11%

Seafood Sales 65.55%

IFQ Lease Fees 0.42% Other 5.92%

Total Expenses Programs & Projects 25.70%

Taxes 10.22%

G&A 12.01%

Operating 20.25%

Cost of Seafood Sales 31.82%

Cost of Benefits Pollock Provides Heating Oil 0.30%

Local Fisheries 32.96%

Cost of Seafood Sales (Local) 36.73%

CSC Operations 5.16%

4-SITE 6.90% Outreach 7.02%

Coastal Villages Region Fund G&A Expenses Detail for the Twelve Months Ending December 31, 2010 Advertising Bad Debt Expense Bank charges Board stipends Board travel Computer expense Depreciation expense Donations & contributions Dues, permits, taxes & license Electric fees Employee benefits Employee education assistance Finance Charges Freight Fuel Insurance Interest expense Internet fees Lawsuit Settlement Management fee expense Marketing Meals and food expenses Misc. expense Payroll Per diem Printing and production costs Professional fees and services Rental expenses Repairs and maintenance Sewer & water Software expense Subscriptions Supplies Tax expense Telephone Training Transportation and parking Travel expenses Vehicle expense

16,536 (18,724) 102,104 152,850 276,054 115,271 147,097 34,212 6,989 27,367 472,609 19,785 1,414 98,586 (79,166) 163,000 588,199 22,835 83,122 28,799 107,252 71,359 19,813 2,711,566 109,556 32,317 942,495 354,475 37,930 816 82,440 10,465 125,359 10,662 100,423 29,563 53,815 360,485 3,267

Total Expenses

7,422,997

Fisheries Support 10.93%

37


Notes to the Financial Statement Auditor: KPMG, LLC performed the audit and prepared the audit report upon which the financial information presented in this annual report is based. Compensation to Key CVRF Employees: The CVRF Board of Directors continues to set aggressive goals and objectives for CVRF and therefore seeks to hire, retain, and motivate the highest caliber employees at every level of operation. In 2010, the top five highest paid employees earned the following in salaries: Executive Director Morgen Crow ($805,000), Operations Director Trevor McCabe ($485,500), Investments Director Richard Monroe ($458,500), North Sea Skipper Owen Kvinge ($257,305), and Arctic Sea Skipper Jorn Kvinge ($201,760). The Board follows Rebuttable Presumption of Reasonableness guidelines in determining the compensation for its Executive Director, a process which includes comparisons with compensation levels at other similar companies. Board Compensation Policy and 2010 Board Fees: CVRF board members receive a daily stipend during meetings and an additional monthly stipend for the CVRF-related work that occurs between CVRF meetings. The CVRF Board compensation policy was adopted in June of 2004 after consultation by CVRF with independent experts, and the policy stipulates that any changes must be approved by an independent body as well. The CVRF board compensation policy is consistent with Rebuttable Presumption of Reasonableness guidelines. During 2010, CVRF paid its board members a total of $554,368 in stipends and benefits. Related Party Transactions: CVRF board members disclosed the following related-party transactions in 2010:

Community Chefornak Chevak Eek Goodnews Bay Hooper Bay Hooper Bay Kipnuk Kongiganak

Board Member Joe Avugiak Skye Chayalkun Walter Brown Evan S. Evan Edgar Hoelscher Eric Olson, Sr. Timothy Samson James Lewis

Relations No No No No No No No No

Community Kwigillingok Mekoryuk Napakiak Napaskiak Newtok Nightmute Oscarville Platinum

Board Member Andrew Kiunya Howard Amos Richard Jung Helen Kaganak John Andy Paul Tulik Frank Berezkin Henry Williams

Relations No No No No No No No No

Community Quinhagak Quinhagak Scammon Bay Toksook Bay Tuntutuliak Tununak

Board Member Wassilie Bavilla John O. Mark James Akerelrea Harry Tulik Gabriel Olick Felix Albert

Relations No No No No No No

Legal Proceedings Involving Directors: CVRF was not engaged in any litigation with any of its directors during 2010. Professional Fees: In 2010, Coastal Villages paid the following fees for professional services: (1) $1,065,867 in legal fees; (2) $1,030,418 in consulting fees; and (3) $316,987 in accounting fees. Auditor Relationship: Coastal Villages did not have any disagreements with its auditors in either 2009 or 2010. CVRF received non-audit services from our auditor (KPMG) in 2010. We paid KPMG $39,865 for preparing our tax returns. Committees: The CVRF Bylaws create a CVRF executive committee consisting of seven members: the CVRF President, Vice President, Secretary, Treasurer, and three at-large CVRF board members. The CVRF executive committee is authorized in the Bylaws to exercise all authority of the full CVRF Board in managing CVRF, except for the selection of CVRF officers and executive committee members. The CVRF Bylaws also authorize the President, with approval of a majority of the CVRF board, to appoint other CVRF committees with such functions, powers, and duties as determined by the President and CVRF board. Using this authority, CVRF has established a Policy Committee to make recommendations to the board on CVRF policies, including as related to: investments, employee compensation, in-region fisheries, donations, artwork, board travel, participant eligibility, and other matters. CVRF has additionally established a Scholarship Committee (to select recipients of CVRF scholarships), a Finance Committee (to advise the board on budgeting and financial matters), and a Loan Committee (to select recipients of loans to resident fishermen for vessels and gear). For each of its active subsidiaries (CVS, CVP, CVC and CVL), CVRF has a committee that functions as a Board as well. During 2010, CVRF committees met on the following dates:

Committee CVRF Executive Committee

CVS

CVP

CVL

CVC

38

Meeting Dates March 8, 2010 March 22, 2010 March 30, 2010 June 3, 2010 June 17, 2010 September 2, 2010 September 22, 2010 November 16, 2010 December 1, 2010 December 16, 2010 April 21, 2010 May 21, 2010 November 9, 2010 December 16, 2010 March 26, 2010 April 7, 2010 May 12, 2010 September 22, 2010 October 22, 2010 December 16, 2010 April 7, 2010 May 12, 2010 June 17, 2010 December 16, 2010 December 16, 2010

Members/Attendees Timothy Samson, Edgar Hoelscher, Paul Tulik, Evan S. Evan, James Lewis, Gabriel Olick, Felix Albert Timothy Samson, Edgar Hoelscher, Paul Tulik, Evan S. Evan, James Lewis, Gabriel Olick, Felix Albert Timothy Samson, Paul Tulik, Evan S. Evan, James Lewis, Gabriel Olick, Felix Albert Timothy Samson, John O. Mark, Paul Tulik, Evan S. Evan, James Lewis, Gabriel Olick, Felix Albert Timothy Samson, John O. Mark, Evan S. Evan, Gabriel Olick, Felix Albert Oscar Evon, Timothy Samson, Gabriel Olick, Wassilie Bavilla Timothy Samson, John O. Mark, Paul Tulik, Evan S. Evan, James Lewis, Gabriel Olick, Felix Albert Timothy Samson, John O. Mark, Paul Tulik, Evan S. Evan, James Lewis, Gabriel Olick, Felix Albert Timothy Samson, John O. Mark, Paul Tulik, Evan S. Evan, James Lewis, Felix Albert Timothy Samson, John O. Mark, Paul Tulik, Evan S. Evan, James Lewis, Felix Albert Evan S. Evan, James Akerelrea, Gabriel Olick, Felix Albert, John Andy Evan S. Evan, James Akerelrea, Felix Albert Evan S. Evan, James Akerelrea, Gabriel Olick, John Andy Evan S. Evan, James Akerelrea, Felix Albert, John Andy Edgar Hoeshler, Timothy Samson, Richard Jung Timothy Samson, Richard Jung, John O. Mark Timothy Samson, Richard Jung, John O. Mark Timothy Samson, Richard Jung, John O. Mark Timothy Samson, Richard Jung, John O. Mark Timothy Samson, Richard Jung, John O. Mark Timothy Samson, John O. Mark, Paul Tulik, Evan S. Evan, James Lewis, Gabriel Olick, Felix Albert Timothy Samson, John O. Mark, Felix Albert Timothy Samson, John O. Mark, Felix Albert Timothy Samson, John O. Mark, Felix Albert Timothy Samson, Richard Jung, Paul Tulik


Cumulative Earnings and Benefits Total Assets

January 1997 through December 2010 (in millions)

350 300 250 200 150 100 50 -

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Cumulative Revenues

January 1997 through December 2010 (in millions)

600

500

400

300

200

100

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Cumulative Program & Operations Expenses January 1997 through December 2010 (in millions)

350 300 250 200 150 100 50 -

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

39


Coastal Villages Staff Community Service Representatives

Anchorage Office Staff

Nellie Abraham Chefornak Corina Abraham Chefornak Abraham Rivers Scammon Bay Marlis Ulak Scammon Bay Anna Wiseman Toksook Bay Bertha Therchik Toksook Bay Dayna Nash Chevak Guy Grancis Chevak Nadia Chayalkun Chevak Carla David Eek Leona Petluska Eek Elizabeth Andrew Eek Ruth Bright Goodnews Bay Carl Paul Jr. Goodnews Bay Steven Stone Hooper Bay Lavinna Wilson Hooper Bay Carol Anaver Kipnuk Carrie Peter Kipnuk Shannon Fox Kipnuk Bernadette Otto Kongiganak Elizabeth David Kongiganak Staci Igkurak Kwigillingok Ingrid Charlie Kwigillingok Marianne Williams Mekoryuk Hazel Peterson Mekoryuk Eleanor Miller Napakiak Linda Motgin-Bill Napakiak Jamie Jenkins Napakiak Fannie Steven Napaskiak Stephanie Maxie Napaskiak Lisa Charles Newtok Kimberly Kassauli Newtok Carol Kassauli Newtok Adeline Tulik Nightmute Anna Joe Nightmute Elena M. Anthony Nightmute Nastasia Larson Oscarville Vacant Platinum Mary Hill Quinhagak Carissa Cleveland Quinhagak Diane Britton Quinhagak Nick David Tuntutuliak Jennifer Joseph Tuntutuliak George Hooper, Jr. Tununak Maria Inakak Tununak Bessie Usugan Tununak

Oscar Evon Dawson Hoover Lloyd Black Marlene Kiokun Alita McClain Chadwick Shavings Darla Graham Janice Gloko-McDowell Mae R. Hank Brentina Lincoln Carolyn George Neil Rodriguez Nick Souza Jill Phelps Yvonne Jackson Troy Wilkinson Karen Leman Desiree Kamuyu Cynthia Jamison Elizabeth Flory Adriene Pruett Jason Bechtle Ryan Gilliam Barbara Hogan Beth Taylor Kimberly Slifer Randy Oh Janice Wassilie Eric Deakin Peter Speaks Danielle Zeedar Cathleen Jimmie Bryan O’Leary

Community Services Director Project Manager Program Coordinator Program Coordinator Media Specialist Facility Maintenance HR Generalist HR Specialist Employment Specialist Employment Specialist HR Assistant Regulatory Manager CVS General Manager Project Manager/CVS Operations CVS Employment Specialist CVS Communications Specialist Controller AP Manager GL Accountant Staff Accountant Fisheries Accounting Manager Fisheries Accountant Fisheries Accountant Payroll Specialist Payroll Specialist AP Specialist II AP Specialist AP Specialist IT Manager Network Administrator Purchasing Coordinator Purchasing Assistant Expeditor

Seattle Office Staff Bill Stokes Brooke Strommen Mike Coleman Liz Symonds Lorena Rosenberger John Brender Mike Madsen Joseph A. Eisenman Kristina Nelson

CVP General Manager HR Manager Sales Manager Purchasing Manger/Vessel Logistics Logistics Manager Senior Port Engineer Port Engineer Engineer Accounting Liaison

Mechanic/Welders Theodore Brown Eek Jacob Rivers Scammon Bay Steven Utteryuk Scammon Bay Lambert Kairaiuak Chefornak Norman Pingayak Chevak Tommy Umugak Chevak Albert Toniak Goodnews Bay Paul Joe Jr. Hooper Bay Joshua Kopanuk Hooper Bay Albert John Kipnuk Joe Joseph Kongiganak Herman Beaver Kwigillingok Lindgren Mathlaw Mekoryuk Patrick Black Napakiak Vacant Napaskiak Isadore Anthony Nightmute Thomas Julius Toksook Bay Edward Enoch Tuntutuliak Harry Lincoln Tununak

Executive Office Morgen Crow Trevor McCabe Rich Monroe Angie Pinsonneault Gretchen Williams Lenore Kairaiuak Floretta Nanalook

Executive Director Operations Director Investments Director Business Development Director Executive Administrator Administrative Assistant Administrative Assistant

Coastal Villages Region Fund 711 H Street, Suite 200 | Anchorage, Alaska 99501 Toll Free: (888) 795-5151 | Phone: (907) 278-5151 | Fax: (907) 278-5150

www.coastalvillages.org

Profile for Coastal Villages Region Fund

2010 Annual Report  

2010 Annual Report  

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