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Pollock Provides®

No Limits

Cali Pikaningnaqluta Yup'ik statement for “Striving To Do More”

Alaskanization

more

WORK

more

FISH

more

HOPE

Cali Pikaningnaqluta Striving To Do More

Coastal Villages Region Fund WORK FISH HOPE

Annual Report

2011


Table of Contents: Edward Enoch of Tuntutuliak working on the John Phillip Sr. Boardwalk in Kongiganak

Mission Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Message from the President . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Message from the Executive Director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Board of Directors Election Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

2011 Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Coastal at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

CVRF Region Benefits

Community Service Center Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Community Service Centers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Coastal Villages Seafoods (CVS)

In-Region Tender Fleet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Salmon Fishery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Halibut Fishery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Processing Plants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

CVRF Program Services

4-SITE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Youth Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Marine Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Pollock ProvidesÂŽ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Fishery Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Outreach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Program Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Bering Sea Operations Bering Sea Importance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Pollock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Crab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Cod . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Financial Reports

Statement of Financial Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Statement of Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Schedule of Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

General and Administrative Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Notes to the Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Cumulative Earnings and Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Special Addition

People Matter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36


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 Adopted June 6, 2006

WORK FISH HOPE 3


Message from the President: By all measures Coastal passed the tests we set for ourselves in the Bering Sea in 2011. We completed our first full year operating the Northern Hawk, our wholly-owned Pollock catcher/processor. We made money in pollock, catching more fish than any other boat in the Bering Sea except one, despite the fleet-wide slump in the “B” season that prevented us from fully harvesting the pollock we had leased from Yukon Delta. We made money in the first full year of ownership of our three Pacific cod longline vessels. We had record earnings in the operation of our four wholly-owned crab vessels, while providing record employment opportunities for residents. We completed the acquisition of five inshore pollock vessels and about 4% of the pollock quota with our CDQ neighbors from Norton Sound as well as an affiliate of MaruhaNichiro, the largest seafood company in the world. Our efforts to “Alaskanize” were recognized by the Alaska State Legislature in a resolution supporting the homeporting of Coastal’s fleet in Alaska. At home in our villages, we also passed the tests we set for ourselves in 2011. We provided unmatched service to our salmon and halibut fishermen in the third year operating our regional seafood plant in Platinum and operating our in-region tender vessel fleet. We provided opportunities to earn money to more than 1,000 of our residents in 2011, making Coastal the largest employer in our region and giving hope to many. We again provided millions of dollars for the Coastal scholarship, heating oil, tax assistance, project fund, salmon research, youth-to-work, marine safety, internship and training programs. Altogether, we provided over $18 million in programs and projects for our people in 2011, while increasing our net assets by $9 million. We utilized our earnings from the Bering Sea wisely. Our villages had another round of democratic elections in 2011, electing nearly one-third of the Coastal Villages Board of Directors. The people gave Coastal a strong vote of confidence -- all six board members who were elected had previously served on the CVRF board. In Yupik, the title of our 2011 Annual Report “Cali Pikaningnaqluta” means “striving to do more.” While 2011 was incredibly successful, we are still just beginning. The 2010 Census showed that our region grew by over 700 people at a time when many areas of Western Alaska are shrinking. The Census showed that our 20 villages still have among the highest rates of poverty and unemployment in Alaska as well as among the six CDQ groups. While we are making economic headway, our villages started with much less than some of the other CDQ groups and we must provide for more people than they have. Over the past 10 years our region grew by nearly as many people than the whole populations of each of the two smallest CDQ groups.

our villages by correcting the CDQ statute so that the allocations are based on population rather than favoritism or faulty decisions of the past. The CVRF Board of Directors and Congressional Delegation must ultimately answer to the voters on this topic. We do not yet have an acceptable answer, but we have respectfully started the discussion. For long-term success, our entire region must pitch in to help with Coastal’s mission. We must work together to carry forward our traditional values. We must work together to maximize the opportunity that CDQ presents for our villages and people. We must strive to do more with the tools we are given. As in 2011, I am confident we can pass these tests.

Thank You,

John O. Mark, Chair

We are hopeful the Alaska Congressional Delegation will help 4

Cali Pikaningnaqluta Striving To Do More


Message from the Executive Director: When Coastal redeemed its shares in American Seafoods in 2010 in exchange for pollock and cod quota and boats, we received a phone call from Governor Sean Parnell congratulating our company, our villages and our people. The State was no longer involved in CDQ investment decisions, but the Governor still cared about our well-being and was encouraged by our new direction, our lack of debt, and our willingness to transition from a CDQ quota holding company into a bona fide Alaskan-owned and Alaska-based seafood company. Our first full year in that transition took place in 2011. We operated the Northern Hawk, the new cod fleet and our existing crab fleet, and we sold roughly $100 million of seafood that we caught ourselves. We provided more employment in the Bering Sea for our residents. We used earnings from fishing rather than CDQ royalty payments to pay for the $18 million in 2011 program benefits that were approved by our Board and delivered to our villages and residents. We increased our net worth by $9 million. We learned a lot, quickly. Throughout the year, it seemed like everything we did increased our profile, drew attention, caused controversy, got people talking. The spouting whale gets the harpoon, they say. We were not trying to spout, but we were brusque at times in the transition to managing a company that has grown to 1,100 employees, $30 million in payroll, dozens of vessels, seafood sales around the world, 26 facilities in our region, and over $300 million on our balance sheet. Coastal’s strength comes from its people, its residents, the 9,304 souls who applied for an Alaska PFD check in 2011. The people elect Coastal’s Board and our Board carries out the will of the people. Through this process, we collectively conceived years ago to become a seafood company and we collectively continue to place immense pressure on ourselves to succeed in that regard. It was awesome that the residents of our 20 member villages chose to re-elect an entire slate of candidates in 2011 with previous experience on the Coastal Board of Directors. We accept and utilize the constructive criticism that comes from our core, our people, and we are also grateful when support is shown for our mission through the elections. Together, we can withstand the challenges that come from outside our region. Not everyone is interested in our success story, in fact some seem unwilling to believe or acknowledge it. The other CDQ groups bristle at our brashness and do not want to give up the extra CDQ fish they enjoy at our expense. Some of our own neighbors can’t register that 20 predominantly Yup’ik eskimos from the Kuskokwim coast, elected by the people, can achieve what Coastal has achieved. We were grateful in 2011 for the support that came from the State Legislature through

resolutions supporting Coastal’s effort to homeport our vessels in Alaska. It was ironic in 2011 that our success was perhaps most recognized in Seattle where they are concerned about the impact our growth may have on their economy. We value the support for our people from outside the region, whether a call from the Governor, a resolution from the State Legislature or a visit from a member of the Alaska Congressional Delegation. In 2011 we valued the expansion of our bond with Norton Sound Economic Development Corporation (NSEDC), our CDQ neighbors to the north. We’ve had crab harvesting agreements with NSEDC for years, but in 2011 we completed the joint acquisition of a major inshore pollock enterprise with them. We are equal partners, we control the venture, and we have been told it is the largest joint CDQ investment in history. We were successful in our first year of operation together. It was symbolically important as the enterprise had been owned by one of the great Seattle families from the Alaska fishing industry and it is now owned by the 18,000 people of western Alaska who elect the boards of CVRF and NSEDC. We look forward to more joint investments among the CDQ villages and entities willing to work together for the good of all, just like our member villages from the Kuskokwim chose to do back in 1992. We’ve needed to trust each other and stick together for years to arrive at the successes of 2011. We’ll need that trust and togetherness even more in the years ahead as Coastal continues to grow and provide. Thank you,

Morgen Crow, Coastal Villages

Cali Pikaningnaqluta Striving To Do More

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Residents Elected by Their Community: The following individuals were re-elected to the CVRF Board of Directors in 2011. It is a symbol of stability and community trust that all newly elected Board members this year were either the incumbent or had previously served on the CVRF Board.

Name Walter Brown Eric Olson Sr. George Chuckwuk Ralph Kiunya Sr. Frank Berezkin Harry Tulik

Community Eek Hooper Bay Kipnuk Kongiganak Oscarville Toksook Bay

Fisher? Yes Yes Yes Yes Yes Yes

Term 2011-2017 2011-2017 2011-2017 2011-2017 2011-2017 2011-2017

The CVRF Board of Directors is comprised of one elected representative from each of our 20 member communities. Every two years, one third of the Board members are up for election in their respective communities. The CVRF bylaws mandate that the elected Board member be a permanently domiciled resident of the community they are representing, during the full course of their term, and that at least 75 percent of the Board members be fishermen. Elections are run under a standardized process in each community to ensure that the election is fair and gives voice to the entire community. CVRF Election Process: 1. The governing body of the community (i.e. tribal council with the exception of Eek) selects an election date and: a. Posts notice of the election, a candidate sign-up sheet, and other general information. b. Posts the items described in (a) in at least two places a minimum of thirty days prior to the election date. 2. Candidate requirements: a. Candidates that have signed up are contacted by the governing body and given a Candidate Information Sheet to fill out. b. Each candidate’s information is available for public review at the governing body’s offices. c. Candidates are placed on the ballot. 3. Elections: a. Elections must occur at least ten days prior to the CVRF annual meeting. b. Elections may occur during the community’s general election process, and typically do. 4. Election results: a. The candidate must receive more than half of the total votes casted. If necessary, a run-off is held until a candidate is selected. b. A letter of representation from the governing body certified by the governing body official is sent to CVRF to notify CVRF of the newly elected Board member.

George Chuckwuk of Kipnuk being sworn in

Every two years, one third of the CVRF Board members are up for election in their respective communities Elections are run by the local governing bodies under a standardized process giving voice to the entire community

The CVRF bylaws require each elected Board member be a permanently domiciled resident of the community that he or she represents, and at least 75 percent of the Board members to be fishermen 6


CVRF Board of Directors: Name

Community Fisher Term

Joe Avugiak Skye Chayalkun Walter Brown Evan S. Evan Eric Olson Sr. George Chuckwuk Timothy Samson Ralph Kiunya Sr James Lewis Andrew Kiunya Howard Amos Richard Jung Helen Kaganak John Andy Paul Tulik Frank Berezkin Henry Williams John O. Mark James Akerelrea Harry Tulik Gabriel Olick Felix Albert

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

Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

2009-2015 2009-2015 2011-2017 2009-2015 2011-2017 2011-2017 2007-2011 2011-2017 2007-2011 2009-2013 2009-2015 2009-2015 2008-2013 2008-2013 2009-2015 2011-2017 2008-2013 2010-2013 2009-2015 2011-2017 2008-2013 2008-2013

The CVRF Board group photo in Hooper Bay taken in July 2011 Top left to right: Skye Chayalkun, Harry Tulik, John Andy, Andrew Kiunya, Gabriel Olick, Felix Albert, James Akerelrea, Paul Tulik, Richard Jung Bottom left to right: Helen Kaganak, Morgen Crow (ex-officio), Henry Williams, Eric Olson Sr., Evan S. Evan, John O. Mark, Frank Berezkin, Jimmy Paul (alternate for George Chuckwuk), James Lewis, Walter Brown

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

Bering Sea Operations

Community Benefits

8 Wholly Owned Vessels

20 Communities

135 million pounds of seafood caught

9,300 Residents

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

2011 Seafood Sales: $54.2 Million

Programs & Projects Benefits to 9,300 Residents

Coastal Villages Crab (CVC)

$271 million spent between 1997-2011

34 Crew Members | 4 Crab Vessels

2011 Seafood Sales: $20.0 Million

Coastal Villages Seafoods (CVS)

Coastal Villages Longline (CVL)

250+ Processors | 1,000+ Fishers & Crew 30+ Tender Crew | 6 Tenders

2011 Salmon & Halibut Payments: $3.8 million

60 Crew Members | 3 Vessels

2011 Seafood Sales: $18.1 Million

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The C/P Northern Hawk fishing in the Bering Sea for pollock Cali Pikaningnaqluta Striving To Do More


Member Communities: Chefornak Chevak Eek Goodnews Bay Hooper Bay Kipnuk Kongiganak Kwigillingok Mekoryuk Napakiak Napaskiak Newtok Nightmute Oscarville Platinum Quinhagak Scammon Bay Toksook Bay Tuntutuliak Tununak

Coastal Villages spent over $18 million in our member communities in 2011 to provide the opportunities described on pages 10-21. As we achieve greater ownership in the Bering Sea, Coastal will be able to provide even MORE benefits to our residents

Cali Pikaningnaqluta Striving To Do More

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2011 Community Service Center Staff: CVRF Community Service Representatives

Nellie Abraham

Richard Tuluk

Dayna Nash

Steven Stone

Chris Dock

Carol Anaver

Chefornak

Chevak

Kipnuk

Hooper Bay

Marianne Williams Eleanor Miller Mekoryuk

Napakiak

Nastasia Larson

Daphne Nicholai

Oscarville

Oscarville

Chevak

Carla David Eek

Ruth Bright Goodnews Bay

Bernadette Otto

Staci Igkurak

Fannie Steven

Lisa Charles

Adeline Tulik

Mary Hill

Abraham Rivers

Anna Wiseman

Kipnuk

Napaskiak

Quinhagak

Kongiganak

Newtok

Scammon Bay

Kwigillingok

Nightmute

Toksook Bay

George Hooper, Jr. Tununak

CVRF Mechanic-Welders

Theodore Brown Eek

Albert Toniak Goodnews Bay

Jacob Rivers

Lambert Kairaiuak Norman Pingayak

Scammon Bay

Paul Joe Jr. Hooper Bay

Chevak

Albert John

Joe Joseph

Patrick Black

Jackie Larson

Thomas Julius

Edward Enoch

Kipnuk

Herman Beaver Lindgren Mathlaw Kwigillingok

Mekoryuk

David Paul

Isadore Anthony

Napaskiak

Chefornak

Nightmute

Napakiak

Toksook Bay

Kongiganak

Napaskiak

Tuntutuliak

Harry Lincoln Tununak

A total of a 60 community service representative and 40 mechanic-welder positions are available year-round for our residents. The Community Service Center (CSC) staff play an important role in delivering the CDQ benefits to the Coastal region. Residents are encouraged to seek assistance from our CSC staff. Normal operating hours are Monday-Friday from 8:00 AM to 5:00 PM. CVRF CSC staff training in Chevak

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Cali Pikaningnaqluta Striving To Do More


Community Service Centers: Last year’s annual report touted the ground breaking ceremony for a new Community Service Center (CSC) in Quinhagak. This year, Coastal Villages would like to officially welcome the Wassilie B Memorial CSC to our family of CSCs. If you are in Quinhagak, please stop by and check it out. On August 19, 2011 CVRF held a dedication ceremony for the newly named Tim Samson CSC in Kipnuk in appreciation of Tim’s service as a Board member and President of CVRF. Many residents of the community stopped by to help bless the building. Coastal also dedicated the Scammon Bay CSC in honor of Maryann Sundown in 2011. Maryann was a respected elder from our region who is dearly missed. This CSC was one of the first built by CVRF, and continues to serve the residents in Scammon Bay. All of our CSCs are open to the public. Services available include: meeting room rental, bunk space rental, shop space rental, mechanic/ welding services (small engine repair, welding, carpentry), internet access, and information on CVRF’s many services. Please stop by and visit to see what CVRF and the CSCs have to offer.

Chefornak

Community Service Center

Goodnews Bay

Community Service Center

Kongiganak

Community Service Center

Chevak

Joe Paniyak Memorial CSC

Hooper Bay

Community Service Center

Kwigillingok

Community Service Center

Eek

Steven White CSC

Kipnuk

Tim Samson Community Service Center

Mekoryuk

Community Service Center

Glimpse of 2012: Newtok Shop In April 2012, CVRF invited Father Tom Provinsal to bless the new mechanic/welding shop in Newtok. Thanks in part to the efforts of several of our Mechanic/Welders (M/W), the residents of Newtok now have a warm place to work on their boats, snow machines, and ATVs.

Newtok

Shop Building

Scammon Bay

Maryann Sundown Community Service Center

Napakiak

Fritz Willie CSC

Nightmute

Community Service Center

Toksook Bay

Community Service Center

Napaskiak

Community Service Center

Oscarville

Community Service Center

Tuntutuliak

Community Service Center

Newtok

Community Service Center

Quinhagak

Wassilie Bavilla Community Service Center

Tununak

Community Service Center

Cali Pikaningnaqluta Striving To Do More

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In-Region Tenders: In 2011, seven tender vessels and two shuttle boats served our salmon and halibut fishers. The Kelly Mae, Camai, Hawk, Coastal Mist, and Double E - all CVS owned - provided salmon tendering and shuttle services in the Kuskokwim Bay and River. The Wassilie B was used to tender halibut at South Nunivak and shuttled halibut from the halibut plants to the CVRF Goodnews Bay Processing Plant in Platinum. The Elsie M, Seagull, and Eider rounded out the tender fleet as contracted vessels.

Kelly Mae: The Kelly Mae purchased 146,013 pounds of fish in Quinhagak and on the Kuskokwim throughout the season.

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 541,088 pounds.

Wassilie B: The Wassilie B was generally used as a halibut tender boat and shuttled halibut to the Goodnews Bay Regional Processing Plant in Platinum.

Hawk: The Hawk spent most of the summer tendering in Quinhagak and Eek as well as working various salmon openers. The vessel purchased 144,224 pounds of salmon and wintered in Seward.

Seagull (contract vessel): The Seagull, a contracted tender out of Bethel, purchased 81,907 pounds of salmon on the Kuskokwim.

Elsie M (contract vessel): The Elsie M, also a contracted tender out of Bethel, purchased 68,502 pounds of salmon on the Kuskokwim.

Eider (contract vessel): The Eider was a contracted tender out of Dillingham and purchased 244,943 pounds of salmon in Goodnews Bay. All of these vessels delivered their fish loads to our processing plant in Platinum. There, the fish was processed, frozen, and then shipped out for delivery to the world-wide market. Jobs on these tenders are a great starting point for residents to gain experience including to work their way onto our crab, pollock, and cod boats.

In Memory of Gilbert Kilbuck Coastal Villages honors Gilbert Kilbuck for his contibution to his region and his work as Mayor of Platinum.

Gilbert was a commercial fisher and his tragic loss at a young age was felt by our entire region in 2011. As Mayor of Platinum, Gilbert enabled Coastal Villages to build and complete a processing plant that has now served the region for several years. The Coastal plant serves hundreds of commercial fishers and their crew, and provides hundreds more fish processing employment opportunities each year. Gilbert was a strong leader for his own village and our region in helping Coastal to make this happen.

The plant provides much needed economic activity benefitting our communities and residents, and a stable fishery that fishers, crew, and processors can look forward to each year.

Gilbert also worked to improve the infrastructure such as the local solid waste services, including by helping to secure a USDA grant to fund a truck to haul waste. He also worked with Platinum’s corporation to survey a location for a future landfill site for Platinum.

In 2009, Gilbert worked with Coastal’s team in submitting a request to the Alaska State Legislature to extend the local runway to better serve Platinum and the Regional Processing Plant. This cooperative effort resulted in the approval from the State of Alaska to extend the runway.

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We thank Mayor Gilbert for this vision and partnership over the years to improve the lives of many. We continue to mourn his loss.

Cali Pikaningnaqluta Striving To Do More


CVS Salmon Season: Our in-region salmon operation is our most important program and makes us the largest private-sector employer. The operations are subsidized by our pollock, crab, and cod businesses in the Bering Sea. With our fishermen's help through icing, bleeding and quality care, we continue to increase the overall value of salmon produced from our region with the hope to someday have the salmon and halibut operations become self-sustaining.

TOP FIVE SALMON FISHERS BY COMMUNITY Community

Fisher

Pounds

Earnings

69,702

$68,325

112,288

$113,144

2,320

$2,368

36,171

$36,263

11,967

$11,951

34,991

$33,649

22,177

$20,975

13,996

$14,227

135,841

$134,298

82,278

$81,884

Wayne Brown Carlie Beebe Eek

Adolph Henry Sr Richard Mark

Kuskokwim River: A total of 423,613 pounds of salmon were delivered to CVS

Timothy White

in District W1 during 8 openers in 2011.

Esther Fox

Quinhagak: A total of 1,386,767 pounds of salmon were delivered in Distric W4 during 24 openers in 2011 - the most of the three districts in which our residents fish. Goodnews Bay: A total of 485,550 pounds of salmon were delivered to CVS in District W5 during 19 openers in 2011. Goodnews Bay Regional Processing Plant: Our Goodnews Bay Regional

Processing Plant, located in Platinum, successfully processed all of the salmon delivered by our fishers, as well as all of the halibut caught by our residents in 2011. It was the first year during which we relied on the Platinum plant to process all of our region’s commercial halibut. CVS will continue processing salmon and halibut in 2012. The housing capacity at the Goodnews Bay Regional Processing Plant was increased to accommodate 225 processors, up from 200 in 2010.

William Mark Jr Goodnews Bay

Annie Bright Jeffrey Evan James Roberts

Kipnuk

Carl Paul Timothy Samson Joseph Brown Sr Evon Azean Jr

Kongiganak

LeRoy Igkurak Sherman Igkurak Robert Otto David John

Kwigillingok

Bruce Igkurak William Igkurak

District Openers Location W1

W4

W5

Total

8

24

19

Kuskokwim River

Kuskokwim Bay (Quinhagak)

Goodnews Bay

Mark Henry

Pounds 423,613

1,386,767

Lawrence Black Napakiak

Moses Ayagalria Jr

485,550

Willie Kernak

2,295,930

Coastal Villages paid $1,951,541 to commercial salmon fishers, with bonuses in the fall totaling another $300,778. In all, 2011 salmon commercial fishers earned $2,252,319 for delivering their wild caught salmon to CVS.

Michael Black

Joseph Egoak Jackie Larson Sr Napaskiak

James Joekay Joseph Larson Harry Williams Norman James Mark Moyle

In 2011, Coastal's

Platinum

John Samuel

salmon and halibut

Randy Fox Walter Johnson

operations continued

James Merritt Quinhagak

to be heavily supported

Timothy Beebe Sr Peter Matthew Thomas Brown Jr

by our pollock, crab,

Isaac Lupie Sr Jonathan Pavila

and cod operations in the Bering Sea

Gilbert Kilbuck

Tuntutuliak

Miles Hill (left) and Frank Foster (right) sorting salmon at the Quinhagak dock

Kacy Lewis Pavila Evan David Evan Jr

Cali Pikaningnaqluta Striving To Do More

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TOP FIVE HALIBUT FISHERS BY COMMUNITY Community

CVS Halibut Season:

Fisher

Pounds

Earnings

9,450

$37,801

891

$3,564

26

$104

5,125

$20,501

7,973

$31,892

66,964

$267,856

14,918

$59,670

25,670

$102,679

3,538

$14,153

75,374

$301,497

18,478

$73,912

Timothy Kinegak Joe Avugiak

The 2011 halibut season was a success with 386,087 pounds of halibut caught and $1,544,346 paid to commercial halibut fishers. Fishers were able to deliver to nine buying stations, including the South Nunivak tender, the Quinhagak dock, and Platinum plant as well as the six halibut plants in Chefornak, Hooper Bay, Kipnuk, Mekoryuk, Toksook Bay and Tununak. The Platinum plant processed all of the halibut in 2011 allowing for a more efficient work force. In prior seasons, CVS had difficulty at the halibut plants, causing processing limits that in turn placed limits on when commercial fishers could deliver their catch. The decision to process and freeze our halibut increased quality, decreased product claims, and has enabled value-added processing into vacuum-packed fillets. CVS will run a similar operational plan for halibut in 2012.

Chefornak

Jovan Abraham Robert Panruk John Atchak Shawn Jones Chevak

Pounds 17,413 891 26 5,465 18,854 137,903 15,813 29,446 3,975 127,094 29,207 386,087

Earnings $ 69,653 $3,564 $104 $21,859 $75,416 $551,612 $63,252 $117,785 $15,898 $508,375 $116,828 $1,544,346

Norman Joe Larry Lake William Friday

Goodnews Bay

Esther R Fox Johnny Mann Luke Tall

Hooper Bay

In all, 2011 halibut commercial fishers earned $1,544,346 for delivering their wild caught halibut to CVS!

Community Chefornak Chevak Goodnews Bay Hooper Bay Kipnuk Mekoryuk Newtok Nightmute Quinhagak Toksook Bay Tununak Grand Total

Matthew Panruk

Louis Lake David Joe Diane Hale Adolph Ayaprun Joshua Paul

Kipnuk

Richard Paul Norman Anaver Andrew Dock Edward Kiokun Gary Ivanoff

Mekoryuk

Viva Smith Albert Williams Samuel Shavings Phillip Kusayak Simeon Fairbanks Jr

Newtok

John Andy Francis Flynn Moses Carl Christopher Tulik Phillip Tulik

Salmon & Halibut Highliners CVS recognizes the top five commercial fishers in the 2011 salmon and halibut fisheries. Salmon highliners caught 149,131pounds of salmon worth a total of $147,580 in 2011. Halibut highliners caught 85,786 pounds of halibut worth a total of $343,145 in 2011. Way to go!

Nightmute

Robert Anthony Clement George Peter Matthew John Mark Quinhagak

Frank Cleveland Ferdinand Cleveland

Salmon Highliners: Esther Fox, Walter Johnson, James Merritt, Timothy Beebe Sr., and Peter Matthew Halibut Highliners: Robert Pitka, Frank Pitka, Edward Kiokun, Simon Chanar, and Gary Ivanoff

Elia Tulik

James Williams Robert Pitka Sr Frank Pitka Toksook Bay

Simon Chanar Frank Chanar

If Coastal was getting its fair share of allocations, CVRF residents would be fishing for more halibut (see pages 36-39 for more information) 14

Noah Lincoln Phillip James James James Tununak

Felix Albert Theodore Angaiak

Cali Pikaningnaqluta Striving Joseph PostTo Do More


CVS Processing Plants:

Halibut Plant Chefornak

Halibut Plant Kipnuk

Halibut Plant Toksook Bay

Quinhagak Dock Quinhagak

Leona Wiseman

Halibut Plant Hooper Bay

Hooper Bay Plant Manager

Shirley Fox

Halibut Plant

Marianne Williams

Dora Mathew

Halibut Plant

George Hooper Jr.

Chefornak Plant Manager

Kipnuk Plant Manager

Toksook Bay Plant Manager

Nick Souza CVS General Manager

Mekoryuk

Tununak

Perry Hendricks

Goodnews Bay Regional Processing Plant Manager

Troy Wilkinson Fisheries Coordinator

Amy Bell-Lake

Mekoryuk Plant Manager

Tununak Plant Manager

Linda Solomon Office Manager

Coastal's regional seafood plant in Platinum, Alaska 2011 was the third full year operating our $40 million seafood processing plant in Platinum

Cali Pikaningnaqluta Striving To Do More

15


CVRF Program Services: Since 1997, Coastal Villages has provided over $270 million in community and economic development initiatives to our 20 member communities. Our goal is to provide “Work, Fish, Hope” – we want to help people have hope by giving them the opportunity to work and to fish. You can find detailed information about Coastal’s programs, projects, and initiatives in our annual Benefits Catalog. Please visit our website at www.coastalvillages.org. You can also visit your CSC to find out more.

Scholarships: • A total of 91 students were awarded $413,000 in scholarships in 2011 • Students attended: the University of Alaska Fairbanks (UAF), the University of Alaska Anchorage (UAA), the University of Alaska Southeast (UAS), Alaska Pacific University (APU), the Kuskokwim University Campus (KUC), AVTEC, Career Academy, Yuut Yaqungviat, and Land and Sea Aviation (formerly known as Take Flight Alaska) • The deadline to submit applications for fall semester (August through December) is the end of May each year • The deadline to submit applications for spring semester (January through July) is the end of October each year

Pollock Provides®

Marine Safety

Programs

Scholarships

Salmon &  Halibut  Operations Community  Service  Centers

Outreach Projects

Internships

WORK, FISH,  HOPE

Fishery Research

Training

Employment

Youth To  Work Tax  Assistance

Funeral Assistance

Community Project  Funding

Internships: • Eight interns were hired in 2011, earning over $50,000 in 2011 • Chevak – Karla Agimuk – Accounting • Chevak – Kash Ferguson – Sales/Marketing • Chevak – Lynette Pequeno – Accounting • Kongiganak – Albert Beaver – Information Technology • Kipnuk – Rea Gunlik – Administration • Kwigillingok – Deandra John – Accounting/HR • Mekoryuk – Melanie Ivanoff – Accounting • Toksook Bay – Jacquelyn Lincoln – Human Resources • The interns participated in several CVRF-sponsored activities. They traveled to Hooper Bay for the July Board of Directors meeting. They toured the Goodnews Bay Regional Processing Plant in Platinum, AVTEC facility in Seward, Northern Industrial Training center in Palmer, as well as other other academic institutions in Anchorage • Albert Beaver is now a full time regular employee in the CVRF IT Department

We want to help people have hope by giving them the opportunity to work and to fish 16

Jeremy Tuluk of Chevak with his certificate in Aviation Maintenance

CVRF Interns - (left to right) Albert Beaver, Karla Agimuk, Kash Ferguson, Melanie Ivanoff

Cali Pikaningnaqluta Striving To Do More


Training:

Charles Lake III of Hooper Bay processing salmon at the Goodnews Bay seafood processing plant in Platinum

• •

6 residents were awarded $32,000 to attend training programs CVRF training grants were matched by an additional $17,000 from other organizations, bringing the total amount of training funding to $49,000 in 2011

Employment: • Coastal Villages paid wages of over $3.8 million to 699 residents from our region in 2011 • Of those employed, 215 were Youth To Work employees. YTW employees are ages 14-19 and perform qualified duties during the summer • We also assisted region residents in finding work with other companies in the seafood industry. These companies paid $494,653 in wages to 37 region residents in 2011

2011 RESIDENT EARNINGS BY COMMUNITY COMMUNITY

Aaron Oscar (in red) of Mekoryuk working on the F/V Arctic Sea 2011 RESIDENT EMPLOYMENT EARNINGS COMPANY

EMPLOYEES

EARNINGS

CVRF

110

$1,520,178

CVRF Youth To Work

215

58,225

CVS Processing Plants

317

1,293,014

CVP Operations

28

360,065

CVC Operations

11

455,198

CVS In-Region Vessels

18

193,730

American Seafoods

33

430,962

Westward Seafoods

4

63,691

Grand Total

736

$4,375,063

EMPLOYEES

EARNINGS

Chefornak

63

$292,409

Chevak

90

621,966

Eek

19

140,484

Goodnews Bay

10

93,124

Hooper Bay

52

316,680

Kipnuk

65

194,687

Kongiganak

68

460,643

Kwigillingok

19

186,285

Mekoryuk

28

260,817

Napakiak

15

61,057

Napaskiak

29

120,352

Newtok

31

147,259

Nightmute

16

87,300

Oscarville

6

29,464

Platinum

9

77,706

Quinhagak

50

329,900

Scammon Bay

33

251,457

Toksook Bay

63

446,279

Tuntutuliak

9

72,629

Tununak

61

184,565

Grand Total

736

$4,375,063

Earnings by other Western Alaskans at Coastal Not included in the table above are 46 employees from the Kuskokwim River who earned $257,249; 18 employees from the Yukon River who earned $184,210; 2 employees from Bristol Bay who earned $30,617; and 1 employee from Norton Sound who earned $5,470 -- all working for Coastal Villages in 2011

Cali Pikaningnaqluta Striving To Do More

17


Top Left to Right - Harley Sundown, Scott Kaganak, Hubba Charlie, Shandon Rivers, Steven Utteryuk, John Hunter, Elliot Kaganak, Kobe Ayapin Middle Left to Right - John Aguchak, Justin Ulak, Larry Utteryuk Bottom Left to Right - Jerry Sundown, Marcus Kaganak, Bradly Charlie, Tyler Rivers, Fabian Akerelrea, Theodore Sundown

Youth Leadership: AFN Elders & Youth Conference: CVRF paid for 19 youth and five chaperones to participate in the 2011 AFN/FAI Elder and Youth Conference in Anchorage from October 15-20. • Katie Waska of Newtok was selected to serve as an alternate youth board member • A CVRF CSR, Mary Hill of Quinhagak, was selected to serve as an elder board member UAA College and Career Fair: A total of 20 youth and four chaperones participated in the 2011 UAA College and Career Fair in Anchorage from October 22-27. • More than 100 post-secondary educational institutions had booths at the fair • The participants from our region toured various facilities including the UAA campus, Career Academy, Anchorage Museum, and other institutions Contributions & Donations: Coastal Villages approved 20 applications and awarded over $40,000 in funding for youth leadership donations and contributions. Coastal Villages supports opportunities for youth groups to engage in activities that promote a positive and healthy lifestyle such as: • College field trips • Basketball camps • Dance festival travel • Conference travel • Festival and other community activity expenses • Special Olympics travel Youth to Work: A total of 17 villages and 215 youth, ages 14-19, participated in CVRF’s Youth to Work Program. The participants collectively earned over $58,000. • Participants are coached by the CVRF CSR from their village • This program helps our elders with household chores such as washing dishes, cleaning and mopping floors, and dumping trash • T-Shirts were given to all the youth and elder participants • The kids celebrated the completion of the summer program with a picnic party

A total of 17 villages and 215 youth, ages 14-19, participated in CVRF’s Youth to Work Program 18

Cali Pikaningnaqluta Striving To Do More


Marine Safety: • In 2011, CVRF began distributing information about the new Coast Guard commercial vessel safety requirements that will become effective for our fishermen in 2012 • 100 fishers received lifejackets and 75 commercial fishers received marine safety kits • We sent two CSRs to Sitka to become Marine Safety Training certified. Congratulations to Bernadette Otto of Kongiganak and George Hooper, Jr. of Tununak for participating • Marine Safety Training was conducted in Napaskiak, Tuntutuliak, Goodnews Bay, Quinhagak and Eek • CVRF continues to sponsor the State of Alaska’s “Kids Don’t Float!” program in our region

Ben Lupie of Kongiganak with the lifejacket and safety kit he received in 2011

Glimpse at 2012: The CVRF Board of Directors approved a

new program in 2012 to provide $300,000 of the equipment newly required by the Coast Guard to our fishermen. The equipment includes: Coast Guard approved lifejackets, PLBs, EPIRBs, immersion suits, beacons, and other items. Call your local CSR to get more information on the requirements and the assistance being provided by CVRF. It is each commercial fisherman’s responsibility to understand and comply with all applicable Coast Guard regulations. Please contact the Coast Guard representatives for any questions at 907-463-2810.

Pollock Provides® Programs: • Heating Oil: 282 drums of fuel (15,510 gallons) were

distributed to region residents. Recipients were selected by each community’s governing body • Project Frostbite: CVRF acquired a wood harvester to be used to harvest timber up the Kuskokwim River in the spring. The harvested wood will be transported downriver and distributed to region residents to help alleviate the high cost of heat resources. The new program is expected to provide more wood at a lower cost to Coastal than the previous Coastal HaullyWOOD program and is more sustainable • CDQ Project Fund: $750,000 was awarded by CVRF to our 20 communities to fund community development projects. The projects are approved by the community governing bodies and benefit each community as a whole. Funds not used by the end of the year are donated to the local search and rescue group or a local organized youth group • Community Boardwalks: Boardwalk construction was started in Kongiganak, connecting the new housing development with the school and giving kids an alternative route to the boardwalk along the runway

Delivering heating fuel to a recipient in Kipnuk

Working on the boardwalk in Kongiganak

In 2011, CVRF began distributing information about the new Coast Guard commercial vessel safety requirements that will become effective for our fishermen in 2012 Cali Pikaningnaqluta Striving To Do More

19


Tax Assistance: • CVRF again provided funds in 2011, allowing the Alaska Business Development Center (ABDC) to travel to all 20 CVRF communities to assist our residents with federal tax returns • 1,610 returns were completed, assisting 3,333 residents in receiving over $2.4 million in tax refunds

Fishery Research Projects: CVRF continues to provide financial support for fisheries research projects that serve our entire region and help both subsistence and commercial fishers, including those who deliver their fish to Coastal Villages. A total of $250,000 was authorized by CVRF in 2011 to support projects run by the Native Village of Kwinhagak, Kuskokwim Native Association, Takotna Tribal Council, and the State of Alaska’s Department of Fish and Game. Fish and Game uses the data from all of the projects for fisheries management purposes.

Outreach: • • • •

• •

State Basketball Tournament: Sweaters were provided to the Toksook Bay High School boys, Scammon Bay High School boys, and Chevak High School girls for the Alaska state basketball tournament in March of 2011 Crab Feasts: Crab feasts were held in most of our communities. Attendees learned about our crab operations and about the increasing amount of crew-members from the region who are working on our crab boats Community Governing Body Conference: We invited 54 people from the governing bodies of our communities to attend the Community Governing Body Conference in January of 2011. Attendees learned about the various programs and projects offered by Coastal Villages, providing valuable feedback to CVRF staff Community Website Links: New community links are now available on our website at www.coastalvillages.org • Community members can post photos. Each submission is reviewed for proper content before being “activated” on the website • Each community’s CSR can post upcoming events, bulletins, and photos from their community Salmon & Halibut Operations: The money used to run our in-region salmon & halibut operations is provided by our earnings in the Bering Sea pollock, crab, and cod fisheries. The salmon & halibut operations are a program providing direct work, fish, and hope to our residents. Please see pages 12-15 for more information about our salmon and halibut operations Funeral Feast Assistance: A total of $10,234 was given out for funeral feast assistance requests

Please see the annual CVRF Benefits Catalog or talk to your local CSR for more information about how CVRF can help you! http://www.coastalvillages.org

The Takotna River weir project

20

Getting ready to cook crab in Kongiganak for a local crab feast

Cali Pikaningnaqluta Striving To Do More


Dedicating the Tim Samson CSC in Kipnuk

Working at the processing plant in Platinum

Martha Bavilla breaking the ground at the Wassilie B CSC construction site

The Wassilie B CSC in Quinhagak

Jack John from Newtok with his safety equipment and children

Tununak residents working on their snow-machine at the Tununak CSC

TOTAL DOLLARS SPENT IN REGION IN 2011 Community Infrastructure $1,124,441 Community Employment/Fishing Opportunities 12,186,559 Community Development Programs 4,169,579 Community Support Programs 1,220,400 GRAND TOTAL $18,700,979

Residents learning how to prepare crab pots in Seattle

YTW employee in Kipnuk

YTW in Kipnuk Commercial Fishing in Goodnews Bay

Interns getting ready to sell king salmon and halibut from CVS in Anchorage

Cali Pikaningnaqluta Striving To Do More

21


Bering Sea Importance How Does Coastal Villages Pay For Programs and Projects for Our People? Coastal’s money comes from the Bering Sea pollock, crab, and cod fisheries. Using CDQ lease revenue, CVRF has over the years acquired its own fleet of Bering Sea vessels and additional quota to become the largest 100% Alaskan-owned seafood company in the Bering Sea. We are the first to realize the dream of the CDQ program with real Western Alaskans providing real jobs aboard real boats that we own and control for our residents. Coastal has accomplished this feat - growing to one quarter of a billion dollars in net assets - while also infusing $271 million dollars in projects and programs into our member communities. The money we make catching pollock, crab, and cod in the Bering Sea is what makes the projects and programs described in this annual report, including our salmon and halibut operations, possible. We no longer rely on CDQ royalties from others. We must catch the fish ourselves, process it, and sell it. Quality is key. It is up to everyone, from Platinum to Scammon Bay, to make sure our fleet operates efficiently so that we can continue to provide opportunities for our residents. We have over 250 jobs aboard our vessels in the Bering Sea which are available to our residents. This is where the earning begins.

Where do pollock, crab, and cod vessels fish? Pollock catcher/processors are not the boats whose lights can sometimes be seen off the coast of Western Alaska. The pollock boats fish further off-shore in the Bering Sea.  In addition, they are pelagic, meaning their nets typically trawl through the middle of the water column and not on the bottom.  Check out the map to the right to see where the fishing grounds are.

 CVRF Member Villages Area  Salmon Fishing Areas  Halibut Fishing Areas  Pollock A Season Trawling Area  Pollock B Season Trawling Area  Pacific Cod Longline  Red King Crab  Blue King Crab 22

Cali Pikaningnaqluta Striving To Do More


Coastal’s Pollock, Crab, and Cod Vessels Coastal Villages currently owns 8 Bering Sea vessels: 1 pollock catcher/processor, 4 crab vessels, and 3 cod freezer/longline vessels. Additionally, we share ownership with Norton Sound in 5 pollock catcher boats. Coastal is always looking for opportunities for more – more boats, more work, and more revenue so we can provide even more Work, Fish, and Hope Coastal’s 100% owned pollock vessel that operate in the Bering Sea

for generations to come

Coastal’s four 100% owned crab vessels that operate in the Bering Sea

Coastal’s three 100% owned cod freezer/longliner vessels that operate in the Bering Sea

Cali Pikaningnaqluta Striving To Do More

23


Pollock - Offshore CVP Operations

Crew photo from the Northern Hawk

The catcher/processor Northern Hawk is the first pollock catcher/processor wholly owned and operated by a CDQ group. CVRF acquired the vessel from American Seafoods in 2010, and started fishing with it in January 2011. Although the 2011 “B” season was considered one of the toughest pollock fishing seasons ever, Coastal Villages still made a profit aboard the Northern Hawk in our first year of operation in 2011. Pollock fishing occurs in two seasons each year. “A” season is from January through April, and “B” season is from June through October. Fishing takes place offshore in the Bering Sea, sometimes just a few miles from Russia. The fishery style is referred to as “pelagic,” meaning the nets typically trawl through the middle of the water column and not on the bottom. The map on page 22 shows where the offshore pollock fishing grounds are.

Wilson Charlie (right) of Scammon Bay working on the Northern Hawk

There are more than just financial benefits to owning vessels and quota. In early 2012, CVRF had all of the “A” season salmon bycatch incidentally caught with our pollock shipped to Anchorage and fed to people in need at Beans Café. The salmon we caught in the pollock “A” season, four months worth of pollock fishing, was not enough for one meal at Beans Café. This brought a new perspective to just how few salmon are really caught by offshore pollock boats.

C/P Northern Hawk CVRF Ownership Of Vessel(s) Sector

100.0% Offshore

Number Of Vessels

1

Inspecting fillets on the Northern Hawk 2011 Statistics: Catch in Pounds

106,059,250

Sales Value

$59,026,793

Sales Value Per Pound Chinook Bycatch - Number Of Fish Chinook Bycatch In Pounds

Pulling pollock in on the Northern Hawk

The pollock caught and processed by the Northern Hawk provided 130

$1.46 320 2,240

Pounds Of Pollock Per One Pound Of Chinook - Coastal Villages

47,348

Pounds Of Pollock Per One Pound Of Chinook - Sector Average

28,827

Chum Bycatch - Number Of Fish Chum Bycatch In Pounds

3,744 14,976

Pounds Of Pollock Per One Pound Of Chum - Coastal Villages

7,082

Pounds Of Pollock Per One Pound Of Chum - Sector Average

4,944

million meals in 2011. Coastal Villages feeds people! 24

C/P Northern Hawk

Cali Pikaningnaqluta Striving To Do More


Pollock - Inshore Historic Partnership Between CDQ Groups! In early 2011, Coastal Villages partnered with Norton Sound Economic Development Corporation (NSEDC) in the acquisition of inshore pollock quota and vessels through a new entity called BSAI Partners LLC. NSEDC is the CDQ company that represents the villages along the coast in Norton Sound, including Nome in the Western Alaska CDQ Program. The partnership, BSAI Partners LLC, purchased inshore pollock fishing rights and vessels from Wards Cove Packing Company. There are five active vessels in this fleet: the Sea Wolf, the Great Pacific, the Alaska Rose, the Bering Rose, and the Destination. An affiliate of Maruha-Nichiro, the largest seafood company in the world, is also a minority owner in the vessels. The acquisition by CVRF and NSEDC included pollock quota rights that amount to about 4% of the directed pollock fishery. This is believed to be the largest joint acquisition by two CDQ groups in the 20 year history of the CDQ program. The new venture was successful for both CVRF and NSEDC in our first year of operation. The investment also included the crab/cod vessel Bulldog.

BSAI Partners LLC ~37.5% Inshore 5 BSAI Partners LLC 111,416,465 $22,283,293 $0.20

Left to right: Morgen Crow (CVRF), Dan Harrelson (NSEDC), John Eckels (NSEDC), John O. Mark (CVRF), and Janis Ivanoff (NSEDC)

401 2,807 39,692 8,913 10,324 41,296 2,698 2,403

CVRF and NSEDC joint meeting

Cali Pikaningnaqluta Striving To Do More

25


Crab Congratulations to the 2011 Region Crab Crew

CVC Operations CVRF owns one of the largest and nicest crab fleets in the Bering Sea. Coastal Villages manages the business from our offices in Alaska. Our ownership and control have allowed us to place region residents in crew positions on the boats. In 2011, around 30 percent of the crew were from our member communities. These jobs are hard work in difficult conditions, but the rewards are worth it.

Vessel Arctic Sea & Bering Sea Arctic Sea & North Sea Arctic Sea Arctic Sea Arctic Sea Bering Sea Bering Sea Bering Sea Bering Sea Bering Sea North Sea North Sea

The Opilio (snow) crab season stretches from January to May, and the king crab season is from October to December. Region residents earned on average $35,000 in the 2011 opilio season and $34,000 in the 2011 king crab season. As crew spots come open on these boats, our goal is to fill them with qualified region residents. Priority is given to individuals who have completed a season working on board one of Coastal’s in-region tenders or at our seafood processing center in Platinum. Please contact your local CSR or our Anchorage office if you are interested in becoming a crab fisherman.

20

$600,000 $500,000  $400,000  $300,000  $200,000  $ , $100,000  $‐

Village Kongigank Chevak Toksook Bay Mekoryuk Chevak Quinhagak Kongiganak Toksook Bay Napakiak Chevak Hooper Bay Kongiganak

15 10 5 0 2009

2010

2011

Earnings of CVRF Region Crab Crew

Norman John of Toksook Bay crabbing

26

Crewmember Isiah Ivon Chris Roberts Norman John Aaron Oscar Brandon Nanok Robert Guest Vladimir Kinegak Francis Lincoln Richard Jung Kane Taniegak Glenn Joe, Jr. Lawrence Phillip

2009 2010 2011 2012 Number of CVRF Region Crab Crew

Aaron Oscar of Mekoryuk preparing crab pots in Dutch Harbor

Coastal Villages caught 5.5 million pounds of opilio and king crab in 2011. Coastal Villages feeds people!

Cali Pikaningnaqluta Striving To Do More


Pacific Cod CVL Operations CVRF acquired three cod freezer longliners and associated fishing rights in 2010 from American Seafoods. All three boats fished successfully in 2011, catching not only our CDQ cod and the boats’ directed fishing allocations, but also catching leased fish for other parties as well. The TAC (Total Allowable Catch) was particularly large in 2011 and many of the other longliners struggled to catch all of their fish. Congratulations to the crews of these three vessels for a successful first year with Coastal. Pacific cod fishing occurs in two seasons each year. “A” season is from January to April and “B” season stretches from June through December. These vessels fish offshore in the Bering Sea, catching fish on long lines with baited hooks. The cod is processed, packaged, and frozen on board. We look forward to providing cod longlining opportunities to our residents in the future. As the owner, Coastal is in a position to maximize the benefits that the three cod longliners provide to our region.

Pulling cod in on the Lilli Ann

Picking ice off of the Deep Pacific

Our cod longliners caught and processed enough cod to provide over 41 million meals in 2011! Coastal Villages feeds people!

Processing cod on the Lilli Ann

Cali Pikaningnaqluta Striving To Do More

27


Balance Sheet

Consolidated Statement of Financial Position Page 35 (of 2010 annual report)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Balance Sheet)

Consolidated Statement of Financial Position December 31, 2011 and 2010

Assets

2011

Current assets: Cash and cash equivalents Trade accounts receivable, less allowance for doubtful accounts of $133,768 and $209,952  in 2011 and 2010, respectively Other accounts receivable Income tax receivable Notes receivable, current portion, net Inventory Prepaid expenses Deposits

$

16,495,501   

23,107,086   

6,599,432    139,127    2,494,265    26,512    9,650,278    3,266,844    316,815   

3,795,688    2,846,987    —     13,462    889,516    1,498,870    155,329   

38,988,774   

32,306,938   

113,731,197    306,110    31,757,526    2,266,627    121,405,130    4,013,938   

118,215,877    212,000    31,757,526    —     121,405,130    —    

$

312,469,302   

303,897,471   

$

6,143,233    —     28,087    52,292    733,852    168,162   

4,491,681    2,334,277    29,259    430,144    768,895    134,046   

7,125,626   

8,188,302   

42,703,192    4,530,585   

42,859,099    3,979,583   

54,359,403   

55,026,984   

258,104,819    5,080   

248,870,487    —    

258,109,899   

248,870,487   

312,469,302   

303,897,471   

Total current assets Property, plant, vessels, and equipment, net Restricted cash Notes receivable, excluding current portion Interest receivable, excluding current portion Investments in fishing rights Investments in fishing affiliates Total assets

2010

Liabilities and Net Assets Current liabilities: Accounts payable and accrued expenses Income tax payable Security deposits Deferred revenue Accrued payroll liabilities Notes payable, current portion Total current liabilities Notes payable, excluding current portion Deferred taxes Total liabilities Net assets: Unrestricted net assets Temporarily restricted net assets Total net assets Commitments and contingencies Total liabilities and net assets

See notes to consolidated financial statements.

28

$

Coastal’s net assets grew by nearly $10 million in 2011 even as we spent over $18 million for jobs and opportunities in our region

Cali Pikaningnaqluta Striving To Do More


Income Statement CONSOLIDATED STATEMENT OF ACTIVITIES Consolidated Statement of Activities (Income Statement)

Years Ended December 31, 2011 and 2010

2011 Seafood sales

$

2010

99,365,213   

31,134,471   

47,904,366    7,445,221   

17,827,365    1,839,664   

Total cost of sales

55,349,587   

19,667,029   

Gross profit

44,015,626   

11,467,442   

Other revenue, gains, and other support: CDQ royalties IFQ lease fees Access fees Interest income Investment income Rent Community service centers Landing tax contribution Gain (loss) on disposal of assets Other

1,583,648    307,022    1,768,732    2,627,545    —     588,097    177,734    5,080    (205,029)   188,018   

13,351,282    200,989    1,186,284    580,973    278,194    561,279    97,005    —     201,698,599    109,800   

7,040,847   

218,064,405   

$ 106,406,060   

249,198,876   

12,847,334    21,944,513    10,845,936    (2,258,455)  

15,881,305    12,514,626    7,422,997    6,313,860   

43,379,328   

42,132,788   

7,677,145   

187,399,059   

1,562,267   

499,098   

Change in net assets

9,239,412   

187,898,157   

Net assets at beginning of the year

248,870,487   

60,972,330   

$ 258,109,899   

248,870,487   

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

Total other revenue, gains, and  other support Total revenues Indirect expenses: Programs and projects Other operating expenses General and administrative Income tax (benefit) expense Total indirect expenses Change in net assets before equity in income of affiliates Equity in income of fishing affiliates

Net assets at end of the year

See notes to consolidated financial statements.

Cali Pikaningnaqluta Striving To Do More

29


Schedule of Activities Information Income Statement Showing Breakout Between Bering Sea Fishing Operations and Projects, Programs, and G&A Years Ended December 31, 2011 and 2010

Bering Sea  Fishing  Operations Seafood sales

$

2011 Projects, Programs, &  G&A

Total

Bering Sea  Fishing  Operations

2010 Projects, Programs, &  G&A

Total

92,287,836   

7,077,377   

99,365,213   

22,359,294   

8,775,177   

31,134,471   

42,829,435    6,666,507   

5,074,931    778,714   

47,904,366    7,445,221   

10,161,181    726,802   

7,666,184    1,112,862   

17,827,365    1,839,664   

Total cost of sales

49,495,942   

5,853,645   

55,349,587   

10,887,983   

8,779,046   

19,667,029   

Gross profit

42,791,894   

1,223,732   

44,015,626   

11,471,311   

(3,869)  

11,467,442   

Other revenue, gains, and other support: CDQ royalties IFQ lease fees Access fees Interest income Investment income Rent Community service centers Landing tax contribution Gain (loss) on disposal of assets Other

—     —     1,768,732    1,807    —     —     —     —     499,417    1,109,355   

1,583,648    307,022    —     2,625,738    —     588,097    177,734    5,080    (704,446)   (921,337)  

1,583,648    307,022    1,768,732    2,627,545    —     588,097    177,734    5,080    (205,029)   188,018   

—     7,367    1,185,160    2,556    288,187    —     —     —     201,695,739    105,500   

13,351,282    13,351,282    193,622    200,989    1,124    1,186,284    578,417    580,973    (9,993)   278,194    561,279    561,279    97,005    97,005    —     —     2,860    201,698,599    4,300    109,800   

3,379,311   

3,661,536   

7,040,847   

203,284,509   

14,779,896    218,064,405   

95,667,147   

10,738,913    106,406,060   

225,643,803   

23,555,073    249,198,876   

—     21,161,075    2,582,128    (2,258,455)  

12,847,334    783,438    8,263,808    —    

12,847,334    21,944,513    10,845,936    (2,258,455)  

—     11,702,742    543,627    6,313,860   

15,881,305    811,884    6,879,370    —    

15,881,305    12,514,626    7,422,997    6,313,860   

Total indirect expenses

21,484,748   

21,894,580   

43,379,328   

18,560,229   

23,572,559   

42,132,788   

Change in net assets before equity in income of affiliates

24,686,457    (17,009,312)  

7,677,145   

196,195,591   

1,562,267   

499,098   

9,239,412   

196,694,689   

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

Total other revenue, gains, and  other support Total revenues

$

Indirect expenses: Programs and projects Other operating expenses General and administrative Income tax (benefit) expense

Equity in income of fishing affiliates

1,562,267   

Change in net assets

26,248,724    (17,009,312)  

Net assets at beginning of the year Net assets at end of the year

—    

$

(8,796,532)   187,399,059    —    

499,098   

(8,796,532)   187,898,157   

248,870,487   

60,972,330   

258,109,899   

248,870,487   

Coastal’s General & Administrative (G&A) ratio of 11% in 2011 was among the lowest of the six CDQ groups, and well below the long-term average of the CDQ groups collectively. While the dollars needed to run Coastal’s significantly expanded operations grew in 2011, we spent less on G&A per dollar than we did in 2010 - in other words, we operated even more efficiently 30

Cali Pikaningnaqluta Striving To Do More


Other Financial Information General & Administrative (G&A) Expenses December 31, 2011

Cash‐Generating Revenues Cash Generating Revenue Seafood Sales 93.20%

CDQ Royalties 1.49% Access & IFQ  Fees 1.95% Interest  Income 2.46%

Other 0.90%

Total Expenses Total Expenses

Bering Sea  Operations 68.96%

G&A 10.59% Taxes ‐2.20% Programs &  Projects 18.25%

Cost of Benefits Cost of Benefits Local Fisheries 64.07%

Fisheries Support 5.59%

Outreach 3.60% 4‐SITE 3.85% CSC Operations CSC Operations 17.27% Pollock  Provides 5.61%

Advertising Bad debt expense Bank charges Board stipends Computer expense Contract labor Depreciation expense Donations & contributions Drug screening & Pre‐Employment Dues, permits, taxes & license Electric fees Employee Benefits Employee education assistance Equipment & small tools Finance charges Freight Fuel Insurance Interest expense Internet fees Lawsuit settlement Management fee expense Meals and food expenses Miscellaneous expense Payroll Per diem Penalties Printing and production costs Professional fees and services Promotions Rental expenses Repairs and maintenance Sewer & water Software expense Subscriptions Supplies Telephone Training Transportation and parking Travel expenses Vehicle expense Total G&A Expenses

          11,914          (67,210)            53,179            93,925            69,653                 809         181,330         343,259              2,901            10,625            16,475      1,009,926            13,264              2,791              6,599            42,240              5,271         837,763         616,394            30,756              7,054         796,405            63,385              1,077      4,643,165         101,248            43,245            10,885         774,246            30,548         107,834            15,322                (238)         155,727            10,406            95,517            85,817              7,601            38,373         575,827                 628    10,845,936

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31


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 Personnel: 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 2011, the top five highest paid personnel earned the following: Executive Director Morgen Crow ($475,000), North Sea Skipper Robert Thelen ($356,582), Arctic Sea Skipper Owen Kvinge ($347,502), Operations Director Trevor McCabe ($318,263), Investments Director Richard Monroe ($303,878). 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. Fish Deliveries by CVRF Employees: During 2011, seven CVRF employees made deliveries of salmon and/or halibut to Coastal’s in-region seafood operations and received a total of $43,968 in fish ticket payments that were in addition to compensation received by the seven as CVRF employees. The highest amount received was $11,533 and the lowest amount received was $3,943. Even after the additional income from the salmon and/or halibut deliveries, none of the seven were among the top five highest paid personnel at CVRF or its subsidiaries. Board Compensation Policy and 2011 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 2011, CVRF paid its board members a total of $626,480 in stipends and benefits and paid nine of its Board members a total of $69,711 in commercial fishing fish tickets for salmon and halibut delivered to Coastal’s in-region seafood operation. The highest amountpaid to any of the nine CVRF Board members for delivery of salmon and/or halibut was $12,686. Related Party Transactions: There were no “Related Party Transactions” with CVRF Board members or their family members in 2011. Legal Proceedings Involving Directors: CVRF was not engaged in any litigation with any of its directors during 2011. Professional Fees: In 2011, Coastal Villages paid the following fees for professional services: (1) $677,597 in legal fees; (2) $659,240 in consulting fees; (3) $258,816 in accounting fees; and $115,000 in lobbying fees. Please see the table on the following page for further detail. Auditor Relationship: Coastal Villages did not have any disagreements with our auditor in 2011. CVRF received nonaudit services from our auditor (KPMG) in 2011: we paid KPMG $151,916 for tax services in 2011. 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/Compensation 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 Finance Committee to advise the board on budgeting and financial matter. For each of its active subsidiaries (CVS, CVP, CVC, CVL, and ASC Offshore), CVRF has a committee that functions as a subsidiary Board as well.

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Notes to the Financial Statement Professional Fees Consulting :

Legal:

Elliott Bay Design Group - ACSA Compliance/Stability Testing

$68,816

General Legal

$440,809

Native Village of Kwinhagak - Weir Project

$62,720

Siu Alaska Corporation - BSAI Acquisition

$236,788

Waveland Sub CDE III, LLC - Audit /Service Fees

$55,667

TOTAL Legal:

$677,597

State of Alaska (ADF&G) - Weir Camp/Maintenance

$48,629

US Dept of Commerce (NOAH) - HACCP Audit

$46,941

Accounting:

Surefish, Inc. - Water Testing/Waste Rendering

$45,697

KMPG - Tax Preparation and Strategies

$151,916

Siu Alaska Corporation - BSAI Acquisition

$44,173

KMPG - Audit Services

$106,900

Kuskokwim Native Association - Kuskokwim Sockeye Project

$36,303

TOTAL Accounting:

$258,816

Leland A Johnson and Assoc. - Quinhagak Design Services

$32,895

Sea State Inc. - CDQ Monitoring Services

$30,355

Lobbying:

John Hancock - Benefit Plan Services

$22,822

Federal and State Lobbying

$115,000

Polaris Group Limited - P&I Services

$20,359

TOTAL Lobbying:

$115,000

Background Check, Inc. - Pre-employment Services

$17,322

Bue Consulting LLC - Kuskokwim Sockeye Project

$12,100

Donegan and Associates - EPA Analysis/Audits

$11,695

Other Consulting (fees of less than $10,000 per vendor)

$102,746

TOTAL Consulting:

$659,240

During 2011, CVRF committees met on the following dates:

Committee Executive Committee

Meeting Dates April 7, 2011 June 7, 2011 August 31, 2011 September 21, 2011 December 13, 2011 December 28, 2011

Coastal Villages Pollock Coastal Villages Crab Coastal Villages Longline

June 7, 2011 August 31, 2011 December 14, 2011 December 14, 2011 December 14, 2011

Coastal Villages Seafoods

January 26, 2011 December 14, 2011

ASC Offshore Policy/Compensation Committee Finance Committee

December 14, 2011 April 7, 2011 November 29, 2011 December 12, 2011 December 14, 2011

Members/Attendees John O Mark, Richard Jung, Paul Tulik, Evan Evan, Gabriel Olick, Felix Albert John O Mark, Richard Jung, Paul Tulik, Evan Evan, Gabriel Olick, James Lewis, Felix Albert John O Mark, Richard Jung, Evan Evan, Paul Tulik, Felix Albert, Gabriel Olick, James Lewis, Joe Avugiak John O Mark, Richard Jung, Paul Tulik, Evan Evan, Felix Albert, Gabriel Olick John O Mark, Richard Jung, Paul Tulik, Evan Evan, Howard Amos, Gabriel Olick, Felix Albert John O Mark, Richard Jung, Paul Tulik, Evan Evan, Howard Amos, Gabriel Olick, Felix Albert John O Mark, Richard Jung, Joe Avugiak John O Mark, Richard Jung, Joe Avugiak John O Mark, Richard Jung, Joe Avugiak Richard Jung, Paul Tulik, John O Mark Felix Albert, Skye Chayalkun, Helen Kaganak Evan Evan, James Akerelrea, Walter Brown, Andrew Kiunya, Felix Albert, Howard Amos, Gabriel Olick Evan Evan, James Akerelrea, Walter Brown, Andrew Kiunya, Felix Albert, Howard Amos, Gabriel Olick Skye Chayalkun, Joe Avugiak, Howard Amos Howard Amos, Joe Avugiak, John O Mark Howard Amos, Joe Avugiak, John O Mark, Richard Jung Howard Amos, Joe Avugiak, John O Mark, Richard Jung Joe Avugiak, Eric Olson, Andrew Kiunya, Richard Jung

Cali Pikaningnaqluta Striving To Do More

33


Cumulative Earnings and Benefits Total Assets

January 1997 through December 2011

$350,000,000 $300,000,000  $250,000,000  $200,000,000  $150,000,000  $100 000 000 $100,000,000  $50,000,000  $0 

Cumulative Revenues

January 1997 through December 2011

$800,000,000 $700,000,000  $600,000,000  $500,000,000  $400,000,000  $300,000,000  $200,000,000  $100,000,000  $‐

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Cumulative Earnings and Benefits Cumulative Program & Operations Expenses January 1997 through December 2011

$400,000,000 $350,000,000  $300,000,000  $250,000,000  $200,000,000  $150,000,000  $100,000,000  $50,000,000  $0 

Seafood Sales vs. CDQ Royalties January 1997 through December 2011

$120,000,000 $100,000,000  $80,000,000  $60,000,000  $40,000,000 

CVRF now earns the vast majority of its CVRF now earns the vast  revenue by catching majority of its revenue  by selling  its own  and selling its own seafood CDQ Royalties Seafood Sales

$20,000,000 $0 

Cali Pikaningnaqluta Striving To Do More

35


People Matter CDQ Allocation Inequities CVRF is the largest of the six CDQ groups in population and number of member villages. CVRF residents deserve a fair share of CDQ program allocations for pollock, crab, cod and other species in the CDQ program. CVRF residents are not receiving a fair share of fish with the existing allocations. There are CDQ groups with 20 times fewer people than CVRF receiving over 100 times more CDQ fish per resident. For instance, while Coastal receives less than 40 pounds of CDQ halibut per resident each year, another CDQ group has been receiving over 1,600 pounds of halibut per resident each year. How did the CDQ allocations become so disproportionate? From 1992-2006 CDQ allocations were set based highly on subjective criteria and the respective political clout of each of the CDQ groups. In 2006, Congress amended the CDQ statute to provide stability by locking in the allocations to each of the respective CDQ groups. Congress did not make changes or corrections to the misshapen allocations. Our people are no less deserving than the people in Emmonak or Togiak or St. Paul or Atka or any of the other CDQ villages within 50 miles of the Bering Sea coast. While stability among the six CDQ groups is important, it will only last if the allocations are fair to all residents. We have no choice but to ask for fair allocations for the sake of present and future generations. The CDQ Program should be “of the people, by the people, and for the people.”

Community Development Quota Group:

 NSEDC  YDFDA  CVRF  BBEDC  APICDA  CBSFA

Norton Sound Economic Development Corporation Yukon Delta Fisheries Development Association Coastal Villages Region Fund Bristol Bay Economic Development Corporation Aleutian Pribilof Island Community Development Association Central Bering Sea Fishermen’s Association

Image courtesy of WACDA (http://www.wacda.org)

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Portage Creek


People Matter Aleutian Pribilof Island Community Development Association (APICDA)

Central Bering Sea Fishermen’s Association (CBSFA)

Bristol Bay Economic Development Corporation (BBEDC)

Norton Sound Economic Development Corporation (NSEDC)

6

1

6

17

15

20

387

425

3,341

5,411

9,070

9,304

3.7%

1.7%

25.9%

15.5%

19.4%

25.8%

12.4%

17.8%

22.8%

14.8%

24.2%

31.6%

0.0%

0.0%

77.9%

29.9%

46.3%

96.1%

$20,508

$26,198

$11,931

$16,394

$13,252

$11,602

Communities Total Population Unemployment Poverty Distressed Communities Income Per Capita

Yukon Delta Fisheries Development Association (YDFDA)

Coastal Villages Region Fund (CVRF)

CDQ Allocation Per Resident (Relative to CVRF) Pollock

14.0

4.6

1.6

1.5

0.9

1.0

Pacific Cod

20.0

10.9

2.9

2.0

1.0

1.0

Opilio Crab

11.3

25.8

2.8

2.0

1.1

1.0

Red King Crab

22.7

12.2

2.8

1.8

1.0

1.0

Yellowfin Sole

112.2

29.2

12.5

6.9

1.2

1.0

BS Sablefish

19.5

19.0

4.7

1.9

1.0

0.0

Halibut

42.4

39.9

0.7

1.1

0.4

1.0

This graph depicts how much fish per resident each group receives compared with CVRF

120 100 80 60 40 20 0 APICDA Pollock

CBSFA Pacific Cod

YDFDA

Opilio Crab

BBEDC

BB Red King Crab

NSEDC

Yellowfin Sole

Sablefish

CVRF Halibut

Coastal Villages accounts for 33% of the total CDQ population, yet receives significantly less than 33% of CDQ Program species. From 2006-2011, Coastal Villages grew by more people than each of the populations of the APICDA and CBSFA CDQ groups, causing the allocation disparity to grow even more 10,000

CVRF serves 9,304 residents and has grown by more than 500 people from 2006-2011

8,000 6,000  4,000  2,000  ‐ APICDA

CBSFA

YDFDA 2006

Sources: CDQ Allocations: NMFS 2012 CDQ Allocation Matrix (http://www.fakr.noaa.gov/cdq/allocations/annualmatrix2012.pdf) Population: 2011 PFD Applications (http://www.pfd.state.ak.us/forms/AnnualReports/2011AnnualReport.pdf) 2006 & 2011 Alaskan PFD Annual Reports (http://pfd.alaska.gov/DivisionInfo/AnnualReports)

BBEDC

NSEDC

CVRF

2011

37


People Matter The 20 member communities along the Kuskokwim coast receive among the least CDQ fish per resident, even though we have more people, a higher rate of unemployment, a higher rate of poverty, a greater number of “distressed” communities and a lower average income than other CDQ villages.

40%

$30,000

30%

$20,000

20%

$10,000

10% 0% APICDA

CBSFA

YDFDA

Unemployment

BBEDC

NSEDC

Poverty

CVRF

$‐ APICDA CBSFA YDFDA BBEDC NSEDC CVRF Income Per Capita

Additional CDQ fish that CVRF villages would receive if CDQ allocations were based on population Additional Additional CDQ fish Estimated CDQ Dollars Species that should Lease that should be going to Rate be going to CVRF CVRF Pollock (mt) 11,439 $450 $5,147,550 BB Red King Crab (lbs) 117,510 $5.00 $587,550 Opilio crab (lbs) 868,496 $1.00 $868,496 Pacific cod (mt) 3,419 $350 $1,196,650 Flatfish (mt) 7,910 $140 $1,107,400 Halibut (lbs) 524,734 $3.00 $1,574,202 Total annual earnings NOT going to CVRF $10,481,848 Over $10 million per year is going to other CDQ groups at the expense of CVRF’s residents

Our people are no less deserving than the people in Emmonak or Togiak or St. Paul or Atka or any of the other CDQ villages within 50 miles of the Bering Sea coast Unemployment: U.S. Census (http://factfinder2.census.gov/faces/nav/jsf/pages/searchresults.xhtml?refresh=t) Poverty: U.S. Census (http://censtats.census.gov/pub/Profiles.shtml, and http://factfinder2.census.gov/faces/nav/jsf/pages/searchresults.xhtml?refresh=t) Distressed Communities: Denali Commission (http://www.denali.gov/index.php?option=com_docman&Itemid=518) Income Per Capita: U.S. Census (http://factfinder2.census.gov/faces/nav/jsf/pages/searchresults.xhtml?refresh=t)

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Cali Pikaningnaqluta Striving To Do More


People Matter CURRENT ALLOCATIONS AND POPULATION Pollock CDQ Group

APICDA CBSFA YDFDA BBEDC CVRF NSEDC

Red King Crab

Percentage of population

Current Allocation

Overage/ Underage

2% 2% 12% 19% 33% 32%

14% 5% 14% 21% 24% 22%

+600% +150% +17% +11% -27% -31%

Approximately $10.9 million of CDQ pollock was unfairly allocated in 2011, including $5.1 million that should have gone to CVRF villages

Percentage of population

Current Allocation

Overage/ Underage

APICDA

2%

17%

+750%

CBSFA YDFDA BBEDC NSEDC CVRF

2% 12% 19% 32% 33%

10% 18% 19% 18% 18%

+400% +50% +0% -44% -45%

CDQ Group

Approximately $1.1 million of CDQ red king crab was unfairly allocated in 2011, including $587,000 that should have gone to CVRF villages

Opilio Crab CDQ Group

CBSFA APICDA YDFDA BBEDC NSEDC CVRF

Pacific Cod

Percentage of Population

Current Allocation

Overage/ Underage

CDQ Group

2% 2% 12% 19% 32% 33%

20% 8% 17% 20% 18% 17%

+900% +300% +42% +5% -44% -48%

APICDA CBSFA YDFDA BBEDC NSEDC CVRF

Percentage of population

Current Allocation

Overage/ Underage

2% 2% 12% 19% 32% 33%

15% 9% 19% 21% 18% 18%

+650% +350% +58% +11% -44% -45%

Approximately $1.6 million of CDQ opilio crab was unfairly allocated in 2011, including $868,000 that should have gone to CVRF villages

Approximately $2.3 million of CDQ pacific cod was unfairly allocated in 2011, including $1.2 million that should have gone to CVRF villages

Flatfish

Halibut

Percentage of Population

Current Allocation

Overage/ Underage

CDQ Group

APICDA

2%

24%

+1,100%

CBSFA

2%

8%

+300%

YDFDA

12%

23%

+92%

BBEDC

19%

23%

NSEDC

32%

CVRF

33%

CDQ Group

Percentage of Population

Current Allocation

Overage/ Underage

CBSFA

2%

26%

+1,200%

APICDA

2%

25%

+1,150%

YDFDA

12%

10%

-17%

+21%

BBEDC

19%

14%

-26%

11%

-66%

CVRF

33%

16%

-52%

11%

-67%

NSEDC

32%

9%

-72%

Approximately $2.1 million of CDQ flatfish was unfairly allocated in 2011, including $1.1 million that should have gone to CVRF villages

Approximately $4.2 million of CDQ halibut was unfairly allocated in 2011, including $1.5 million that should have gone to CVRF villages

Cali Pikaningnaqluta Striving To Do More

39


Coastal Villages Staff Community Service Center Staff Jonathan Lewis Lambert Kairaiuak Richard Tuluk Norman Pingayak Jeremy Tuluk Leona Petluska Theodore Brown Jackie Petluska Carl Paul Albert Toniak Larry Small Cheryl Smart Jessica Gump Paul Joe Joshua Kopanuk Carol Anaver Carrie Peter Shannon Fox Barry Smith Elizabeth David Deloras Lozano Joe Joseph Staci Igkurak Ingrid Charlie Herman Beaver Marianne Williams Hazel Peterson Lindgren Mathlaw Elena Miller Patrick Black Fannie Steven Regina Nicholai Jermaine Kassaiuli Jonah Ayuluk Adeline Tulik Sandra Tulik Isadore Anthony Elliot Tulik Nastasia Larson Linda Solomon Mary Hill Timothy Sherman Clarissa Brown Abraham Rivers Marlis Ulak Jacob Rivers Clifford Kaganak Florence Therchik Emil Amik Xavier Tulik Thomas Julius John White George Hooper Jr Maria Inakak Peter Post Harry Lincoln Jimmy Inakak Edward Enoch

Anchorage Office Staff

Community Service Representative Mechanic Welder Community Service Representative Mechanic/Welder On-Call Mechanic/Welder Community Service Representative Mechanic/Welder On-Call Mechanic/Welder On-Call Community Service Representative Mechanic/Welder On-Call M/W Community Service Representative Community Service Representative Mechanic/Welder On-Call Mechanic/Welder Community Service Representative On-Call Community Service Representative On-Call Community Service Representative On-Call Mechanic/Welder Community Service Representative Community Service Representative Mechanic/Welder Community Service Representative On-Call Community Service Representative Mechanic/Welder Community Service Representative On-Call Community Service Representative Mechanic/Welder Community Service Representative Mechanic/Welder Community Service Representative On-Call Community Service Representative On-Call Community Service Representative On-Call Mechanic/Welder Community Service Representative On-Call Community Service Representative Mechanic/Welder On-Call Mechanic/Welder Community Service Representative Office Manager Community Service Representative On-Call Community Service Representative On-Call Community Service Representative Community Service Representative On-Call Community Service Representative Mechanic/Welder On-Call Mechanic/Welder Community Service Representative On-Call Community Service Representative On-Call Community Service Representative Mechanic/Welder On-Call Mechanic/Welder Community Service Representative On-Call Community Service Representative On-Call Community Service Representative Mechanic/Welder On-Call Mechanic/Welder Mechanic/Welder

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

Morgen Crow Trevor McCabe Richard Monroe Angie Pinsonneault Neil Rodriguez Pamela Fitch Lenore Kairaiuak Dawson Hoover Lloyd Black Marlene Kiokun Christine Lincoln Chadwick Shavings Andrew Heater Gretchen Williams Elizabeth Lozano Carolyn George Floretta Nanalook Nick Souza Danielle Zeedar Troy Wilkinson Karen Leman Crystal McGill Desiree Kamuyu Mandy Ramsey Elizabeth Flory Jason Bechtle Kimberly Slifer Janice Wassilie Florence Mark Paul Parka Eric Deakin Peter Speaks Albert Beaver III Cathleen Jimmie Teicha Cox

Executive Director Operations Director Investments Director Business Development Director Community Benefits Director Human Resources Director Executive Administrator Project Manager Program Coordinator Program Coordinator Administrative Assistant Facilities Maintenance Safety Manager HR Specialist HR Specialist HR Assistant HR Assistant General Manager Sales & Logistics Specialist Fisheries Coordinator Controller Assistant Controller AP/Cash Manager Accounting Manager Staff Accountant Fisheries Accountant AP Specialist II AP Specialist Payroll Specialist AR Specialist IT Manager Network Administrator Technology Support Specialist Purchasing Assistant Expeditor

Seattle Office Staff Ken Tippett Brooke Strommen Mike Coleman Liz Symonds Lorena Rosenberger John Brender Mike Madsen John Saam

General Manager HR Manager Sales Manager Purchasing Manger/Vessel Logistics Logistics Manager Senior Port Engineer Port Engineer Network Engineer

Staff as of 9/7/12

Coastal Villages Region Fund 40

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

www.coastalvillages.org

Profile for Coastal Villages Region Fund

2011 Annual Report  

2011 Annual Report  

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