2018
ANNUAL REPORT
MAKING THE DREAM REALITY
TA B L E O F C O N T E N T S
Table of Contents Table of Contents
2
Mission Statement
3
Chief Executive Director’s Report 4 The Bering Sea 6 Community Assets
8
Employment
9
2
Education & Training Programs 10
Essentials
14
Community Service Centers
18
Advocacy & Community Engagement
20
Housing
22
Financial Disclosures
23
Board of Directors
28
Message from the Chairman
31
C O A S TA L V I L L A G E S RE G I O N F U N D
M I S S I O N S TAT E M E N T
Strategic Intent (Vision) Continuous focus on balancing growth in commercial fishing and sustainable development of Coastal Villages Region Fund communities.
Scammon Bay Hooper Bay
Strategic Mission
Newtok
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.
Mekoryuk
Tununak Toksook Bay Nightmute Chefornak Kipnuk
Core Values • • • • • • •
Chevak
Napakiak
Oscarville Napaskiak
Tuntutuliak Eek Kongiganak
Kwigillingok
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 Resources Growth and Sustainability through Maximum Return on Capital Industrious People + Job Opportunities = Self Determination
Quinhagak
Goodnews Bay Platinum
Core Competencies • Balance the needs, wants and expectations of all-now and seven 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
Member Communities Scammon Bay
Mekoryuk
Kwigillingok
Oscarville
Hooper Bay
Toksook Bay
Kongiganak
Eek
Chevak
Nightmute
Tuntutuliak
Quinhagak
Newtok
Chefornak
Napakiak
Goodnews Bay
Tununak
Kipnuk
Napaskiak
Platinum
ANNUAL REPORT 2 018
3
CHIEF E XECUTIVE DIRECTOR’S MESSAGE
Report from the Chief Executive Director It is my great honor to report that 2018 was one of the best years in our financial history. In 2018, we earned over $83 million in sales, and after taking into account our Bering Sea fishing costs, G&A costs and community benefit spending, we achieved over $8.2 million in net income. We are operating like a well-oiled machine and continue to accelerate up the learning curve effectively and efficiently.
MORGEN CROW CHIEF EXECUTIVE DIRECTOR
POPULATIONS, JOBS, VOTES AND CDQ ALLOCATIONS MUST REMAIN LINKED SO THAT THE RICHES FROM THE BERING SEA HAVE THE BEST CHANCE OF HELPING REAL PEOPLE.” MORGEN CROW CHIEF EXECUTIVE DIRECTOR
In 2018 we finalized our cod boat refit, and we are proud to report that our new vessel is already breaking catch records. Fish on, Flicka! We also expanded the Community Service Center (CSC) in Eek and built our first house that will go to an Eek resident in 2019. We will continue these building projects in 2019, with plans to construct up to seven residential housing units. But this is only a small snapshot of what we could do. If Congress allocated CDQ resources fairly, our construction list could be much longer. We are seeing further indications that our dream of an honest CDQ program that fits into a healthy Bering Sea fishing industry is on the verge of becoming a reality. We are cutting through the old games of hiding the CDQ program for fear that ‘someone’ will take it away. We are no longer distracted by unfounded and emotion-driven arguments around bycatch, compensation and ownership limitations. We are shining a light on the real issue that exists and people are starting to take note. Coastal Villages does not hide from the issues, even the hard ones – we face them head on and put the spotlight on them until a solution is found, vetted and implemented. The Alaskan delegation can no longer ignore the injustice that directly impacts our residents and the voters. Looking ahead to 2019, we have approved an $18 million community benefit spending plan. Fix the allocations, and we can sustainably spend closer to $30 million per year on benefits for our region. That is the only truth that I see, and any other message is only an attempt to distract from this simple truth. This is what I know to be true: populations, jobs, votes and CDQ allocations must remain linked so that the riches from the Bering Sea have the best chance of helping real people. Those in Congress who honor real people with real quota can expect to get votes. In 2019, we look forward to residents in Kwigillingok, Napaskiak, Newtok, Platinum, Quinhagak, Tuntutuliak and Tununak getting out to vote for their democratically elected representative on CVRF’s Board of Directors. In the years to come, we look forward to all CVRF residents electing who will represent them in Washington DC and support fair treatment of all CDQ residents. We have been loudly raising hell about the CDQ allocations since 2012 and still not one single pound of quota has shifted. Our CVRF elected officials are holding Alaska’s congressional delegation accountable and encouraged voters not to vote for those who do not support fair treatment of all CDQ residents by a federal program that was created for their benefit. We are losing more than $10 million dollars each year because of the inequity in the CDQ allocations, and it only gets worse as the years go by. Where is that money going? Does anyone care? I care. Our elected Board of Directors cares. Our region residents care. And Congress must care! Change is inevitable, and the CDQ program must adapt and improve. Exercise your right. Send a message with your vote!
4
C O A S TA L V I L L A G E S RE G I O N F U N D
CHIEF E XECUTIVE DIRECTOR’S MESSAGE
People
Jobs 1,043
806
YTW aged youth
Youth to Work employees
158
2,315
2012 8,927
2015 9,441
2018 9,517
Our residents are our greatest asset, and the CVRF region continues to grow.1
Households
In-region employees & Interns
6,060
$4.6 million In earned wages
Adults over age 18
Votes
Residents advocating for themselves By voting, our residents speak up about the issues that are important to them and impact the CVRF region.
Voter Turnout by Community*
Approximately 2,681 votes were cast in the 2018 general election, which is the largest number in recent history!2 Seven communities had a turnout over 50%. Over 45% of all 5,964 registered voters in CVRF communities participated in the election. *Data for Platinum and Oscarville is not available because they do not have local voting precincts. 1. State of Alaska Permanent Fund Division. (2018). Revenue Permanent Fund Information System dataset for 2018 Dividend year (PFD). 2. State of Alaska, Division of Elections. (2018). 2018 General Election Official Results.
ANNUAL REPORT 2 018
5
THE BERING SE A
What is the CDQ Program?
65
CDQ
Community Development Quota
Eligible communities within 50 nautical miles of the Bering Sea Coast Formed into 6 CDQ groups
1992
Year of CDQ program creation
10%
Of the total allowable catch from all major federal groundfish fisheries in the Magnuson Stevens Bering Sea and Aleutian Islands (BSAI) Fishery Conservation allocated to 6 CDQ groups and Management Act turned the CDQ program into law3
MSA
Program goals stated by Congress
◆ ◆ Provide eligible western Alaska villages with the opportunity to participate and invest in BSAI fisheries, ◆ ◆ Support economic development in western Alaska, ◆ ◆ Alleviate poverty and provide economic and social benefits for residents of western Alaska, and ◆ ◆ Achieve sustainable and diversified local economies in western Alaska. Learn more about the CDQ program: https://alaskafisheries.noaa.gov/fisheries/CDQ
CVRF’s Bering Sea operations yield earnings for investing in CVRF communities The Community Development Quota Program (CDQ) allows CVRF to participate and invest in Bering Sea commercial fishing for pollock, cod, crab and other fish species. Commercial fishing activities and the resulting sales of seafood products drive company earnings and provide Coastal Villages region residents and communities with programs like Youth to Work, Ciuneq, People Propel®, Pollock Provides® Heating Oil Program and many others. CVRF does not rely on grants or donations; instead, money for our communities is earned through the hard work of fishing fleet employees and crew who work on CVRF vessels in the Bering Sea. When CVRF started in the 1990s, the company leased its CDQ quota to other fishing companies. By 2010, CVRF had acquired full ownership of crab, pollock and cod boats, and additional quota. CVRF is the only CDQ group that wholly owns and operates vessels in all three of these fisheries, and with that ownership comes a voice in the industry as a member of vessel owner associations.
Investing in the fleet to keep operations efficient, safe and profitable CVRF has owned vessels and successfully operated its Bering Sea fishing fleet for nearly ten years. Coastal Alaska Premier Seafoods (CAPS) is the platform for CVRF’s commercial Bering Sea fishing operations. The company continues to invest in the fishing fleet to maintain successful operations and be in the best position to generate income for our 20 member communities. The new, electric winch system on the Northern Hawk is one example of an investment in the fishing operation. Transitioning from a hydraulic to an electric winch system has resulted in a vessel that is safer, more efficient and more environmentally sustainable. The new winches save time for crew members and increase time spent fishing, which generates more profits that can be driven back into programs and projects for CVRF communities. Without profitable fishing in the Bering Sea and the hard work of staff from CAPS and its subsidiaries, CVRF would not be able to provide programs for our residents. Thank you, staff and crew! 3. Photo courtesy of the Ted Stevens Foundation.
6
C O A S TA L V I L L A G E S RE G I O N F U N D
THE BERING SE A
A modern fleet: F/V Flicka sets sail In 2018, CVRF successfully finished the conversion of its new fishing vessel, F/V Flicka, into a cod longliner that replaced F/V Deep Pacific. It is a modern vessel that will be able to catch and process Pacific cod for decades. The refit is a milestone for CVRF as it is a major undertaking to overhaul a vessel, and the company readily accepted the challenge. The leadership and staff of CVRF are pleased with the results.
A beautiful new vessel This new vessel will allow CVRF to focus on catching Pacific cod in the Bering Sea; not on spending time and money to maintain an older vessel which required increasingly costly repairs and maintenance. The vessel also has a larger freezer hold than F/V Deep Pacific did, which means fewer trips back and forth to port to offload fish. The investment in F/V Flicka ultimately enables CVRF to maximize its resources and generate sustainable funding for projects and programs in its 20 villages. In 2018, F/V Flicka sailed on five trips and caught more than three million pounds of Pacific cod.
F/V FLICKA: 2018 B SEASON NUMBERS
5 trips over 112 days
21 3million
crew members
pounds of cod caught
ANNUAL REPORT 2 018
7
COMMUNITY ASSETS
Realizing the potential of our region’s most important asset: Our people Every day, CVRF staff members in the communities, corporate offices and Bering Sea work hard to reach the goal of creating opportunities for individuals to achieve and maintain financial security. To realize this goal, CVRF directly invests in the most important asset of our region: our people.
CVRF is dedicated to supporting youth on the pathway from their first job in high school to identifying their desired career or vocation, reaching their career goals and accessing the funding they need to complete their education or training. These programs provide critical support for individuals working toward financial security.
CVRF’s projects and programs are designed to support region residents through job opportunities with real expectations that promote real achievements; educational and training opportunities to help develop people’s workforce skills; and support for essential needs to help residents with the expensive cost of living in rural Alaska.
CVRF also understands that living in rural Alaska is expensive and that residents appreciate having support for the essentials like heating oil, transportation, home appliances and tax preparation. These programs help reduce the overall cost of living in CVRF’s remote and rural communities off the Bering Sea coast.
Across the Coastal Villages region, Community Service Representatives (CSRs) help residents access CVRF’s many programs and apply for jobs and other career development opportunities. Mechanic/Welders (M/Ws) provide discounted shop services. CVRF’s presence in every community means jobs for region residents and staff available to assist residents. CVRF is proud to have created sustainable and meaningful local jobs for residents.
All 9,517 permanent residents of CVRF’s 20 communities are eligible for CVRF programs.1 However, to participate in most programs, residents need to verify their permanent residency. For more information, residents can talk with their local CSR or visit WORKFISHHOPE.COASTALVILLAGES.ORG.
James George of Nightmute filling his heating oil drum through the Pollock Provides® Elder Program.
8
C O A S TA L V I L L A G E S RE G I O N F U N D
EMPLOYMENT
Bering Sea earnings fuel economic development Cod
Pollock
99.47 million lbs caught
15.86 million lbs caught
Crab
1.71 million lbs sold
$15 MILLION INVESTED IN CVRF COMMUNITIES IN 2018 Direct Employment
Pathways to Success
Creating Sustainable Jobs 139 staff & Board in 20 communities $4.6 million earned wages $228,500 in employee benefits
Supporting Youth for Career Success 825 Youth to Workers and Interns 80 Ciuneq participants 144 scholarship recipients
Community Essentials
Providing Essentials 2,170 households and 722 elders received 109,000 gallons of heating oil 2,200 tax returns completed
Earning income and making the dream reality Resident Employees & Board Paid Positions Full and Part-Time Positions
Number of Paid Positions
Gross Wages
Bering Sea Fishing
3
$104,719
Board of Directors
21
$606,964
Community Service Centers
54
$1,853,219
Mechanic/Welder Services
59
$2,048,037
Security Services
2
$24,000
139
$4,636,939
Summer Employment for Career Development Youth to Work Interns Total Paid Positions & Wages In-Region
Number of Paid Positions
CVRF provides paid work opportunities to motivated, hard-working individuals living in the Coastal Villages region. Job opportunities exist at all 20 CVRF community offices, as well as on the crab boats, longline vessels, catcher/processor vessel and in the corporate offices. We take pride in hiring the best and the brightest from CVRF communities for these true Alaskan jobs. In 2018, CVRF employed 964 individuals across the region, in full- and part-time positions, as well as in summer employment for career development. These individuals collectively earned nearly $5.5 million.
Gross Wages
806
$709,938
19
$118,548
825
$828,486
964
$5,465,425
ANNUAL REPORT 2 018
9
E D U C AT I O N & T R A I N I N G P R O G R A M S
YTW employee Romauld Hooper works on a net mending project in Tununak. Instructor Patrick Whitman provides guidance.
Creating a pathway to the future
Youth to Work: Gaining a positive first work experience The Youth to Work (YTW) program provides a positive first work experience for young adults, ages 14-19 in the Coastal Villages region. Applicants go through the full job cycle: applying online, meeting expectations for coming to work on time every day, performing their job duties and earning a paycheck. This program is designed to prepare youth to work in CVRF communities in the future. YTW supports participants in developing cultural skills and knowledge; gaining job experience by shadowing at local stores and governing bodies and helping their communities through service activities. Youth can also cultivate their leadership skills in the Team Lead position. To qualify for the Team Lead position, applicants must have at least a 2.5 GPA and have completed two seasons of YTW or have equivalent leadership experience. In 2018, 806 youth participants earned roughly $610,000 in summer wages. Nearly 80 percent of participants also qualified for a discretionary, performance-based bonus ranging between 13 to 25 percent of their summer pay. The bonus pool totaled $100,000.
YOUTH TO WORK IS ABOUT MENTORING, GUIDING AND PREPARING YOUTH FOR THEIR FUTURE JOBS AND CAREERS. BY REWARDING PERFORMANCE IN A YOUTH EMPLOYMENT PROGRAM, WE PROVIDE A STEPPING STONE FOR YOUTH WHO WANT TO DEVELOP THEIR WORK ETHIC AND TO BUILD GREAT LEADERSHIP SKILLS.�
10
LOUISE PAUL COMMUNITY SERVICE REPRESENTIVE KIPNUK
77%
$750
$975
Percentage of youth population that completed YTW1
Average earnings for YTW Team Member
Average earnings for YTW Team Lead
C O A S TA L V I L L A G E S RE G I O N F U N D
E D U C AT I O N & T R A I N I N G P R O G R A M S
Ciuneq - Looking forward: Exposure to education and career options The Ciuneq program is designed to help youth participants better understand the different career pathways available in Alaska, Washington and the Bering Sea. CVRF exposes youth to a variety of educational and career development opportunities that are available to high performing, motivated high school students.
9th grade experience:
10th grade experience:
•
•
Where: Anchorage and Seward - AVTEC, Alaska Pacific University, University of Alaska, Anchorage
•
What: 40 ninth graders from 17 CVRF communities - Met faculty and staff - Learned what it takes to reach the careers they want - Planned high school course work and gained understanding of grades required for acceptance into college and trade school - 4-day program
•
•
•
Who: Minimum program requirements - Recognizing hard work: 2.5 GPA during 8th grade, on track to pass Algebra 2, statement of interest
Where: Anchorage and Seattle - Coastal Alaska Premier Seafoods, Boeing Factory, Foss Maritime, Seattle Maritime Academy, University of Washington
3.64
What: 40 tenth graders from 16 CVRF communities - Learned about career and educational opportunities in the maritime industry Average GPA of 9thfor entrance - Developed strategies for preparing into college and participants trade school grade - Gained hands on experience - Practiced taking the ACT college entrance test - 7-day program
Who: Minimum program requirements - Recognizing hard work: 2.5 GPA during 9th grade, on track to pass Algebra 2, statement of interest
3.58
3.50
Average GPA of 9th grade participants
Average GPA of 10th grade participants
ANNUAL REPORT 2 018
11
E D U C AT I O N & T R A I N I N G P R O G R A M S
Kayla Kugtsun completed her second summer internship with CVRF’s accounting department in 2018, after completing four summers of YTW. Through these career development programs, Kayla has gained progressively challenging experience, coupled with new insights each year. In her initial work experiences, she learned the importance of coming to work on time, and more recently she developed an understanding of the business ramifications of meeting deadlines. These job experiences have not only prepared Kayla to be a better employee, but they also have aided her studies. When she returned to her Accounting classes at UAF after completing her second CVRF accounting internship, she felt more familiar with the course content, noting that it “felt like review.” Kayla expects to complete her bachelor’s degree in Accounting from UAF in 2022 and hopes to find an accounting job back in her village of Kwigillingok.
THERE ARE NOT MANY PLACES THAT OFFER YOUTH WORKFORCE DEVELOPMENT PROGRAMS LIKE CVRF DOES, ESPECIALLY ONES TAILORED TO THE YOUNGER GENERATION, LIKE YTW AND INTERNSHIPS. I’D ENCOURAGE STUDENTS WHO ARE ENROLLED IN COLLEGE TO APPLY FOR THE INTERNSHIP. TAKE ADVANTAGE OF THESE INTERNSHIPS AND TRY TO TAKE THE MOST OUT OF THEM – THEY CAN HELP WITH COLLEGE OR TRAINING AFTER HIGH SCHOOL.” KAYLA KUGTSUN 2018 ACCOUNTING INTERN KWIGILLINGOK 12
C O A S TA L V I L L A G E S RE G I O N F U N D
E D U C AT I O N & T R A I N I N G P R O G R A M S
Post-high school programs: Developing skills and gaining experience Internships with CVRF provide an important platform for developing professional skills and acquiring knowledge, thereby preparing students to thrive in any work environment. In addition to their work tasks, interns receive focused career coaching and the chance to travel to other CVRF villages, Seattle and Dutch Harbor to increase their understanding of CVRF operations. In 2018, 19 interns from 12 different CVRF communities worked in Anchorage or a CVRF community and earned nearly $119,000. Interns working within their home communities gain valuable work experience while having the chance to live at home between the spring and fall semesters of college. To qualify for the internship program, a resident must be currently enrolled in college or vocational school.
Scholarships: Key financial support for higher education and vocational training CVRF supports region residents in pursuit of their career goals. After high school, those residents who want to expand the number and types of job opportunities available to them can attend vocational school,
college or university. The Louis Bunyan Memorial Scholarship Fund enables residents pursuing higher education or certificate programs to receive money for tuition, room and board, books and required fees. The training assistance program provides tuition assistance to residents attending short-term training programs from two days to twelve weeks. 2018 scholarship recipients attended the University of Alaska, Anchorage, Fairbanks and Kuskokwim campuses, AVTEC and other institutions. Training award recipients attended Pro-Flight Aviation and other training programs. CVRF is committed to hiring from our communities for jobs located in our communities, the corporate office and in the Bering Sea fleet. Higher education and training can be great preparation for those jobs. In 2018, 144 individuals received scholarships and training awards totaling roughly $490,000. Residents currently enrolled in college or vocational school or those who plan to attend should apply for the Louis Bunyan Memorial Scholarship. The minimum GPA requirement to qualify is 2.0. The higher the applicant’s GPA, the greater chance they have to qualify for the maximum funding available–$4,000 per semester.
Kyle Kanuk has worked as a CVRF intern for three summers, after completing four summers of Youth to Work. In 2018, he worked at the Kongiganak CSC and supported CSRs and M/Ws in carrying out YTW program activities. Kyle appreciates the skills he learned while working for CVRF, especially the importance of listening carefully and respecting everyone around him. Kyle is majoring in Yup’ik Language at UAF with an Occupational Endorsement for entry-level welding and expects to finish his degree in 2021. After finishing his coursework, he plans to work as a Yup’ik Language teacher in the Lower Kuskokwim School District (LKSD). ANNUAL REPORT 2 018
13
ESSENTIALS
Providing goods and services necessary for daily life in the communities Living in rural Alaska is expensive. CVRF supports residents in purchasing equipment necessary for living in rural Alaska, and by facilitating tax preparation services and making funds available to other local organizations. With these goods and services, CVRF helps residents save money, which can support them in the future.
People Propel®
$1,550
The People Propel® Program was created in 2012 and has grown to be one of CVRF’s most popular and well-known programs. In 2018, CVRF paid 30 percent of the price of equipment, helping residents purchase ATVs, appliances, outboards, snow machines, heating systems, boats and more. This program helps lower the cost of equipment critical to village life and supports people in accumulating assets, a component of economic development. In 2018, CVRF accepted 735 applications and provided roughly $1.48 million in support, which helped residents purchase over $4.93 million in equipment. Since the program’s inception, People Propel® has assisted residents with purchasing nearly $23 million worth of equipment.
Average tax refund received by CVRF residents who participated in the Tax Assistance Program
Tax Assistance Program
I AM VERY GRATEFUL
CVRF again partnered with the Alaska Business Development Center volunteer tax and loan program to provide free tax return assistance to residents of our region. CVRF provides funding for volunteer tax preparers to travel to CVRF communities and help people prepare and file their tax returns. CVRF’s local staff help to coordinate the volunteers’ stay in the communities. For the 2017 tax year, the program resulted in roughly $3.4 million in refunds for more than 2,200 completed returns. Since the program’s inception in 2006, residents have received more than $33 million in tax refunds.
Pollock Provides® Heating Oil Program The Heating Oil Program provides residents an important break from the hefty costs of heating their homes during the cold months of the year. In 2018, CVRF expended more than $383,000 on the program and provided 2,170 households with 35 gallons of heating oil each.
Pollock Provides Elder Program ®
Each winter, CVRF distributes much-needed heating oil and other necessities to elders living in the region as part of its longstanding Elder Program. CVRF distributed 46 gallons of heating oil and 60 pounds of high-quality meat from an Alaskan butcher shop to more than 720 elders in the communities. The value of these items per person totals roughly $548, and CVRF spent about $396,000 on the Elder Program in 2018.
Designated Fund In 2018, CVRF awarded more than $385,000 in funding to local organizations that submitted approved project plans for community and economic development projects that largely contributed to community safety efforts.
Funeral and Burial Assistance CVRF helps alleviate the burden of funeral costs for region residents burying family members in one of the 20 CVRF communities. Families may receive up to $500 for assistance with purchasing food and necessities for the funeral feast, and up to $500 for burial assistance. Burial assistance can help with casket purchase, air freight of the casket or materials for local casket building. In 2018, CVRF contributed more than $50,000 for assistance with 51 funerals. 14
C O A S TA L V I L L A G E S RE G I O N F U N D
FOR CVRF FOR HELPING OUR COMMUNITIES IN THEIR TIME OF NEED, ESPECIALLY THE RECENT PROGRAM FOR ELDERS. I HAVE NEVER SEEN A COMPANY LIKE CVRF IN MY TIME OF LIVING.” MARIA OAKS RESIDENT OF HOOPER BAY
$177 Average savings on heating oil per household, thanks to the Pollock Provides® Heating Oil Program
ESSENTIALS
The Nayagak family receives 35 gallons of heating oil from CVRF through the 2018 Pollock ProvidesÂŽ Heating Oil Program. Back row: Victor Nayagak, Charlotte Nayagak and Nick Levi Jr. Front row: Canon Nayagak ANNUAL REPORT 2 018
15
WHEN I THINK BACK TO HOW WE USED TO OPERATE TO WHERE WE ARE NOW, I AM PROUD OF THE DECISIONS WE HAVE MADE AND APPRECIATE THE RISKS WE TOOK TO GET HERE. I FEEL LIKE WE HAVE GROWN UP, STEPPED UP TO THE NEXT LEVEL AND WE KEEP PUSHING FORWARD.” RICHARD JUNG CVRF BOARD CHAIRMAN NAPAKIAK
16
C O A S TA L V I L L A G E S RE G I O N F U N D
ANNUAL REPORT 2 018
17
COMMUNITY SERVICE CENTERS
A community space to access CVRF programs and services CSC community services and staff
Eek CSC expansion
CVRF has Community Service Centers (CSCs) and staff in 20 communities, where 54 dedicated community service staff members serve CVRF residents and listen to their needs. The CSCs are open to the public and offer a variety of services including meeting room rental, shop space rental, shop services, internet access and information about CVRF programs. Staff are available to assist with residency verification applications, job searches and applications for CVRF programs.
In 2018, CVRF expanded the Eek CSC. This much-needed expansion creates more meeting room and YTW space and improves services for the community and within the shop. The project created jobs and provided additional wages in the community while local hires brought a depth of construction experience and relevant local knowledge. Five local hires worked on the expansion project.
CVRF shop services CVRF’s talented team of 59 Mechanic/Welders (M/Ws) work across 18 communities to perform routine maintenance on ATVs, snow machines, outboard motors and Toyo stoves and heaters. They can also repair and customize aluminum boats and work on other custom projects for residents. Service Writers (SWs) provide support to M/Ws and help maintain a smooth and efficient service shop by assisting with diagnosing problems, creating work orders and clearly communicating estimated costs and completion times to customers.
Eek’s CSC building expansion, the second project of its kind, highlights the M/W team’s diverse set of skills. M/Ws typically focus on shopbased services and repairs; the CSC expansion, however, required the M/Ws to apply their technical knowledge to building construction and to gain new skills in Structured Insulated Panel (SIP) building techniques. The success of the Eek CSC expansion in 2018 and the Scammon Bay CSC expansion in 2017 demonstrates the diverse skill set that the M/W team brings to each CVRF community and reveals the depth of knowledge they possess. CVRF communities will be able to draw upon the team’s experience in construction for future building and weatherization projects.
WE WORKED TOGETHER AS A TEAM TO ACHIEVE THE PROJECT’S GOAL OF SAFELY EXPANDING THE CSC BUILDING ON TIME AND WITHIN BUDGET. OVER THE LAST FOUR YEARS, WE’VE SEEN A 144 PERCENT INCREASE IN WORK ORDERS, AND THE EXPANDED CSC SHOP WILL ALLOW US TO PROVIDE A GREATER NUMBER OF SERVICES AND MEET INCREASING DEMAND.”
THEODORE BROWN MECHANIC/WELDER REGIONAL MANAGER EEK
The Eek CSC had been one floor prior to the expansion. Now, the CSC spans two floors and has a larger footprint.
18
C O A S TA L V I L L A G E S RE G I O N F U N D
COMMUNITY SERVICE CENTERS
Mechanic/Welders and Service Writers attend trainings and enhance services M/Ws and SWs participate in a variety of training programs each year to stay up-to-date with professional standards and to better meet the needs of CVRF residents. Every two years, most M/Ws attend a welding training. To complete the training, they have to pass standard weld tests and receive a welding card, thus meeting the industry standard for aluminum and steel welding. In 2018, 26 M/Ws completed the training, passed their steel and aluminum tests and built a sled to show their competence in welding. In 2017, CVRF began sending M/Ws and SWs to All Seasons Honda in Homer to deepen their knowledge. M/Ws shadow experts and learn best practices for repair of four-wheelers and snow machines. SWs work at the front of the shop to learn best practices for writing service orders, providing excellent customer service and supporting the mechanics working on customer vehicles. These one-on-one trainings ultimately improve services for residents. In 2018, four staff members from shop services attended two weeks of training.
Jason Akerelrea, a SW based in Scammon Bay, found the training in Homer immensely valuable. Seeing the All Seasons work order system inspired Akerelrea to update Scammon Bay’s paper-based work order system to an electronic one. Akerelrea developed the new system using Adobe and Microsoft Excel. In Adobe, he created a form for quotes and work orders that resulted in an easier and more accurate process: Standard rates auto-fill by using a drop-down menu and formulas autocalculate the total costs. He also developed an Excel sheet that allows SWs to quickly identify customers by their membership number, and another that keeps a running tabulation of services provided, hours and total charges. Finally, Akerelrea observed the service writers at All Seasons pulling up customer history and sharing it with the mechanics. Inspired by his observation, Akerelrea adapted what he saw in Homer and created a filing system that allows everyone at the shop to easily pull customer history. Having this information helps mechanics better understand the work history for the vehicle and provides the M/W and SW team with context before diagnosing and repairing it. Systems like this allow the shop services team to better serve CVRF’s customers: region residents.
CVRF M/Ws participating in the 2018 welding training.
ANNUAL REPORT 2 018
19
ADVOCACY & COMMUNITY ENGAGEMENT
Working to make the dream a reality For more than 25 years, earnings through the western Alaska CDQ program have enabled the six CDQ groups to spend more than a billion dollars on economic development programs and projects in 65 Bering Sea coastal communities.4 Without the CDQ program, it is unlikely that these communities would reap the same level of economic benefits from the federal fisheries that exist in the Bering Sea. As the CDQ program has matured, the unfair distribution of benefits within the program has become more apparent, and residents of a few small villages have the ability to receive significantly more just by virtue of where they live. All 26,700 residents who live in the 65 CDQ communities1 deserve to be treated equally. However, as it currently stands, more than 9,500 residents of the CVRF region are not able to access the same level of benefits as residents from other CDQ groups. Unfair resource allocations established in the early days of the program remain locked in place, while the population in the larger and less advantaged groups continues to grow. For the continued success of the program, Congress should restore fairness and remove perceptions of political influence by instituting a formula-based system for allocating quota.
Connecting with the dreams of CVRF residents Members of the CVRF Board visited seven member communities in the summer of 2018. We are grateful for the hospitality that over 400 attendees extended to the Board members who visited their communities. At each stop, residents shared their thoughts, and Board members provided updates on CVRF’s activities, including their vision for the future of the company and CVRF’s efforts to ensure fair and equitable treatment for all CDQ residents. The discussions at these meetings made clear that we all need to keep the future of our communities and the CDQ program in mind during every election.
CSRs Alice Matchian-Gump and James Joe of Hooper Bay distribute voter information materials to community residents prior to the 2018 elections.
Let’s fix the allocation situation! To learn more visit: www.beringseabalance.com
The Executive Board looks forward to continuing these discussions in more CVRF communities during the summer of 2019.
Contact your representatives to support fair and equitable CDQ allocations! SENATOR LISA MURKOWSKI Washington, DC Office 522 Hart Senate Office Building Washington, DC 20510 Phone: (202) 224-6665 Fax: (202) 224-5301 www.murkowski.senate.gov/contact/email
SENATOR DAN SULLIVAN Washington, DC Office 302 Hart Senate Office Building Washington, DC 20510 Phone: (202) 224-3004 Fax: (202) 224-6501 www.sullivan.senate.gov/contact/email
4. CVRF compilation of annual report data from six CDQ groups. (2007 – 2017).
20
C O A S TA L V I L L A G E S RE G I O N F U N D
REPRESENTATIVE DON YOUNG Washington, DC Office 2314 Rayburn House Office Building Washington, DC 20515 Phone: (202) 225-5765 Fax: (202) 225-0425 donyoung.house.gov/contact/
ADVOCACY & COMMUNITY ENGAGEMENT
Giving our dreams a voice CVRF is a community-based organization that believes it is important for residents to make their voices heard through their votes. In the weeks before the November 2018 elections, CVRF’s Board of Directors led a collaborative effort aimed at increasing voter turnout in all 20 communities. Board members, CSRs, M/Ws and Anchorage staff worked together to provide residents information about election dates and polling locations in their individual communities. CVRF also wanted to support the nearly 6,000 registered voters across the Coastal Villages region to make informed decisions on election day. To do that, the outreach team asked candidates running for Alaska Governor and U.S. House of Representatives about issues that directly affect voters in the Yukon-Kuskokwim Delta. We shared the candidates’ responses with residents. This information helped people vote for the candidates that they felt best represented them and their priorities.
Votes shape reality During the general election in November 2018, over 2,680 votes were counted in CVRF communities: The highest number of votes from the Coastal Villages region recorded in recent history! Nearly 45 percent of registered voters in CVRF’s 20 communities cast a ballot and made their voices heard in the general election. CVRF recorded both the largest number of votes and highest voter turnout rate of any CDQ group.
To read the voter guide visit:
CSRs Priscilla Jimmie and Josephine Uttereyuk of Scammon Bay help residents make a plan to vote in the November 2018 elections.
Quyana to all the voters who made their voices heard in 2018!
https://tinyurl.com/CVRFvotes
Largest number of CDQ votes came from CVRF communities2
2,681
7
45%
Votes cast in 2018 general election
CVRF communities with higher voter turnout rates than the statewide average
Of registered voters in CVRF communities participated in the election
ANNUAL REPORT 2 018
21
HOUSING
M/W Richard Brown and two local hires construct the walls for the housing pilot project in Eek.
CVRF responds to community survey with housing pilot CVRF’s 2018 community survey revealed that nearly 30 percent of respondents living in CVRF communities identified housing as the biggest challenge they are facing. With this new knowledge, CVRF prioritized housing as a focus area and rolled out a pilot (test) project in fall 2018 to address the critical need for housing in the Coastal Villages region. For the test project, CVRF constructed a “tiny house” in Eek: An affordable and energy efficient option for a single person or small family. It is made of polyurethane foam core structural insulated panels (SIP), a highly energy efficient alternative to the more traditional stick-built construction. Local labor and CVRF staff acted as the principal builders of the tiny house. CVRF considered different financing mechanisms for the test project. Mortgages are a mechanism that CVRF had prioritized, in part because they involve participants as active buyers in the home acquisition process. Home mortgage loans can also reduce reliance on federal funding programs by spreading the cost of the home beyond just one group. For the test project, CVRF is working with the Bureau of Indian Affairs (BIA) and Association of Village Council Presidents (AVCP) to finance the home and to ensure that an Eek resident in need of a new home can move in by 2019. For future housing activities, CVRF intends to use a financing model that draws on both grant funding and buyer participation. Grant funding will cover 60 percent of home costs while the remaining 40 percent will be the resident’s responsibility and covered through a low interest rate mortgage loan, through either the US Department of Agriculture’s (USDA) 502 direct program or a US Department of Housing and Urban Development (HUD) 184 approved lender. BIA Housing Improvement Program (HIP) Category D funds will cover 30 percent of total costs and CVRF’s People Propel® program will cover the remaining 30 percent. This financing model will allow CVRF to build more than one home at a time because the costs are spread across three different funding groups: the buyer, CVRF People Propel® and BIA. The housing test project would not have been possible without close cooperation from several collaborating organizations. CVRF thanks staff members from the Native Village of Eek and the City of Eek for the time and effort devoted to the pilot project. CVRF is also grateful for the time, cooperation, dedication and creativity of staff members from AVCP, BIA, HUD and USDA.
22
C O A S TA L V I L L A G E S RE G I O N F U N D
OUR GOAL IS TO BRING ANOTHER APPROACH TO GETTING HOUSING TO THE RESIDENTS OF CVRF, AND TO DO IT IN THE MOST AFFORDABLE, COST EFFECTIVE AND ENERGY EFFICIENT WAY POSSIBLE.” BOB MARQUEZ PRODUCTS AND SERVICES MANAGER
FINANCIAL DISCLOSURES
Committees and committee meetings The CVRF Bylaws create an Executive Committee consisting of seven Board members who are elected by the full Board of Directors: the Chairman, Vice Chairman, Secretary, Treasurer and three at-large Executive Committee members. CVRF’s Bylaws authorize the Executive Committee to exercise all authority of the full Board in managing CVRF, except for the election of officers and Executive Committee members. The CVRF Bylaws also authorize the Chairman, with affirmation from the Board of Directors, to appoint other committees with such functions, powers and duties as determined by the Chairman and Board. Using this authority, CVRF has established several committees comprised of members of the Board of Directors: A Policy/Compensation Committee to make recommendations to the Board on CVRF policies, a Finance Committee to advise the Board on budgeting and financial matters, a Regulatory and Legislative Committee to provide the Board with information about issues of interest to CVRF, an Election Committee to advise the company on policies and procedures related to community Board member elections and a Disciplinary Committee to make recommendations to the Board on a myriad of topics related to Board member dynamics. For CVRF’s six subsidiaries, (Coastal Alaska Premier Seafoods [CAPS], Coastal Villages Pollock [CVP], Coastal Villages Crab [CVC], Coastal Villages Longline [CVL], Coastal Villages Enterprises [CVE] and Coastal Villages Seafoods [CVS]) CVRF has established subsidiary Boards. CVRF committees and subsidiary Boards are comprised of members of the Board of Directors, and met either in person or via teleconference as appropriate throughout 2018: • • • • • •
The CVRF Executive Committee met six times: January 3, January 12, February 12, March 19-20, March 22 and October 17 The six subsidiary Boards (CAPS, CVP, CVC, CVL, CVE and CVS) intended to meet in early December for their annual meetings, but postponed them to January 2019 due to the November 30, 2018 earthquake The Disciplinary Committee met two times: January 2 and October 17 The Finance Committee met on December 12 The Election Committee met on May 15 An ad hoc committee on the People Propel® Program met on January 17
Financial disclosures Auditor and auditor relationship KPMG, LLP performed the audit and prepared the audit report on the financial statements, upon which the financial information presented in this annual report is based. CVRF has not had any disagreements with its auditors (KPMG) in any year, including 2017 and 2018. CVRF received nonaudit services from its auditor (KPMG) in 2018, and paid KPMG $50,800 for tax services.
Compensation to key CVRF personnel and related party transactions CVRF fully discloses the compensation of its top personnel in each annual report to its residents. The federal CDQ statute specifically requires each CDQ group to disclose the “compensation levels of the top 5 highest paid personnel” (16 U.S.C. § 1855(i)(1)(F)(ii)). Until 2012, there was also a CDQ Panel rule requiring the disclosure of the “total amount…received by each such individual.” CVRF believes that its residents have a fundamental right to more information than what is currently required by the statute and that providing full and fair disclosure is the best way to ensure strong self-governance, the key to the long-term success of any enterprise. The company considers this approach to be in the best interest of its communities, the CDQ program as a whole and the industry over the long term. In the spirit of full disclosure, CVRF has always disclosed the total amount paid to the company’s top five personnel, whether they are office staff or crew members. Starting with the 2012 annual report, CVRF expanded its disclosure to include the company’s top 10 personnel. The CVRF Board of Directors sets aggressive goals and objectives for the Company and is pleased with the results that the personnel in the company have helped deliver to our communities. CVRF maintains its commitment to hiring and retaining the best personnel available to bring the vision of the Board of Directors to life and create exceptional returns for stakeholders and residents of CVRF communities for generations to come.
ANNUAL REPORT 2 018
23
FINANCIAL DISCLOSURES The Board follows IRS Rebuttable Presumption of Reasonableness guidelines in determining the compensation for its Chief Executive Director and top executives, a process conducted by an independent contractor which includes comparisons with compensation levels at other similar companies. The Chief Executive Director receives an annual $10,000 life insurance benefit, in addition to cash compensation. In 2018, the top 10 highest paid personnel earned the following wages: Chief Executive Director (base salary: $510,000; bonus $425,000); Director of Business Development (base salary: $312,000; bonus: $80,000); North Sea Captain (fishing compensation: $349,434); Bering Sea Operations General Manager (base salary: $294,000; bonus: $48,400); Chief Operations Officer (base salary: $222,500; bonus: $80,000); Deputy Director (base salary: $221,000; bonus: $58,400); Northern Hawk Fishmaster (fishing compensation: $273,289); Northern Hawk Captain (fishing compensation: $257,122); Finance Manager (base salary: $196,708; bonus: $45,400); Flicka Captain (fishing compensation: $232,393).
Board compensation policy and 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. CVRF’s Board compensation policy was adopted in June 2004 after consultation with independent experts. The policy stipulates that any changes must be approved by an independent body. The policy was updated in January 2011 and approved by the independent authorized body comprised of an independent member of each community. The CVRF Board compensation policy is in full compliance with IRS Rebuttable Presumption of Reasonableness guidelines. During 2018, CVRF paid its Board members $628,652 in salaries, stipends and benefits.
Related party transactions CVRF goes above and beyond the required related party disclosures in its reporting of material employment and business relationships. None of CVRF’s employees or Board members have a financial relationship with any partners who lease or harvest CVRF’s quotas. Related party transactions with Board members include: daughter-in-law, CSR ($42,908); father-in-law, M/W Manager ($131,497); self, Winter Watchman ($12,000); sister-in-law, CSR ($46,427); daughter, Accounting Specialist ($53,692); daughter, Community Benefits Associate, Accounting ($64,276).
Legal proceedings involving directors CVRF was not engaged in any litigation with any of its directors during 2018.
Professional fees In 2018, CVRF paid the following fees for professional services: (1) $186,235 in legal fees; (2) $640,913 in consulting fees; (3) $184,905 in accounting fees; and (4) $173,572 in lobbying fees.
F/V Northern Hawk crew offloading pollock products in Dutch Harbor. Sources 1. State of Alaska Permanent Fund Division. (2018). Revenue Permanent Fund Information System dataset for 2018 Dividend year (PFD). 2. State of Alaska, Division of Elections. (2018). 2018 General Election Official Results. 3. Photo courtesy of the Ted Stevens Foundation. 4. CVRF compilation of annual report data from six CDQ groups. (2007 – 2017).
24
C O A S TA L V I L L A G E S RE G I O N F U N D
FINANCIAL DISCLOSURES OF FINANCIAL POSITION Consolidated statements ofCONSOLIDATED financialSTATEMENT position (balance sheet) (Balance Sheet)
Assets
2018
2017
51,313,031 401,190
40,743,666 —
6,867,602 93,012 174,301 3,832,680 3,302,290 75,000
6,876,560 — 250,561 5,374,307 3,815,060 —
Total current assets
66,059,106
57,060,154
Assets held-for-sale Restricted certificates of deposit Refundable income taxes Deposits Notes receivable, excluding current portion Property, plant, vessels, and equipment, net Investments in fishing rights Investments in unconsolidated fishing affiliate
325,230 235,000 82,573 8,336 281,127 85,616,306 121,405,130 5,965,645
365,000 636,190 103,972 239,001 564,400 88,666,054 121,405,130 4,760,969
$
279,978,453
273,800,870
$
2,574,797 2,928,020 2,681 12,959 — 15,478
4,218,383 2,708,844 — 567,536 111,319 29,826
5,533,935
7,635,908
7,810
—
Current assets: Cash and cash equivalents Restricted certificates of deposit Trade accounts receivable, less allowance for doubtful accounts of $240,146 and $303,409 in 2018 and 2017, respectively Refundable income taxes Notes receivable, current portion, net Inventories Prepaid expenses Other assets
Total assets
$
Liabilities and Net Assets Current liabilities: Accounts payable and accrued expenses Accrued payroll liabilities Capital lease, current portion Deferred revenue Income taxes payable Security deposits Total current liabilities Capital lease, excluding current portion Total liabilities Net assets, without donor restriction Total liabilities and net assets
$
5,541,745
7,635,908
274,436,708
266,164,962
279,978,453
273,800,870
General and administrative expenses 2018 Advertising Bad debt expense
$1,245
Internet fees
82,252
8,526 Meals & food expenses
Bank & finance charges
19,706
Computer & software expense
76,947 Payroll
Contract labor
31,648 Per diem
79,244
Depreciation expense
99,393
18,246
Drug screening & preemployment expenses Dues, permits, taxes & licenses Employee benefits Employee education assistance Freight Fuel Insurace Interest expense
Miscellaneous expenses
84,716
Printing & production costs
280 Professional fees & services 4,771 266,801
1,344 6,576,008
Rental expenses Repairs & maintenance
8,742 Supplies
892,942 6,130 100 97,214
19,657 Training
13,664
633 Transportation & parking 433,404 Travel expenses
22,293 326,637
145 Total G&A expenses
$9,172,688
ANNUAL REPORT 2 018
25
FINANCIAL DISCLOSURES
CONSOLIDATED STATEMENT OF ACTIVITIES (Income Statement)
Consolidated statements of activites (income statement) 2018 Programs and Projects, General and Administrative
Programs and Projects, General and Administrative
Total
Bering Sea Fishing Operations
$ 83,320,882
—
83,320,882
76,503,264
—
76,503,264
29,954,618
—
29,954,618
26,746,952
—
26,746,952
53,366,264
—
53,366,264
49,756,312
—
49,756,312
Bering Sea Fishing Operations Seafood sales
2017
Cost of sales Gross profit Other revenues, gains, losses, and other support: Lease and profit share income Interest income Community service centers Rent Loss on asset impairment Gain (loss) on disposal of assets Other
Total
1,811,786 — — — (65,000) 4,000 163,356
2,358,057 36,614 610,128 236,677 (655,267) (43,901) 136,133
4,169,843 36,614 610,128 236,677 (720,267) (39,901) 299,489
2,337,125 121 — — (3,622,181) 295,045 479,350
2,118,872 35,964 501,991 315,874 (313,058) 92,427 27,837
4,455,997 36,085 501,991 315,874 (3,935,239) 387,472 507,187
1,914,142
2,678,441
4,592,583
(510,540)
2,779,907
2,269,367
85,235,024
2,678,441
87,913,465
75,992,724
2,779,907
78,772,631
— 27,859,498 910,348 —
14,914,814 55,341 8,262,340 761,344
14,914,814 27,914,839 9,172,688 761,344
— 28,608,683 1,337,099 —
14,425,380 180,673 8,672,376 852,976
14,425,380 28,789,356 10,009,475 852,976
Total indirect expenses
28,769,846
23,993,839
52,763,685
29,945,782
24,131,405
54,077,187
Total expenses
58,724,464
23,993,839
82,718,303
56,692,734
24,131,405
80,824,139
Change in net assets before equity in income of fishing affiliates
26,510,560
(21,315,398)
5,195,162
19,299,990
(21,351,498)
(2,051,508)
3,079,676
2,266,242
Total other revenues, gains, losses, and other support Total revenues, gains, losses, and other support Indirect expenses: Programs and projects Other operating expenses General and administrative Property management
Equity in income of unconsolidated fishing affiliate
3,079,676 —
Income tax expense Change in net assets
29,590,236
— (3,092)
(3,092)
(21,318,490)
8,271,746
Net assets at beginning of the year Net assets at end of the year
$
Adjusted EBITDA
$ 37,545,395
(19,931,262)
— 21,566,232
—
2,266,242
(7,347)
(7,347)
(21,358,845)
207,387
266,164,962
265,957,575
274,436,708
266,164,962
17,614,133
32,385,527
(19,309,481)
13,076,046
Cumulative revenues
January 1997 through December 2018 $1,600,000 $1,400,000
In Thousands
$1,200,000 $1,000,000 $800,000
$600,000 $400,000
$200,000 $0
26
C O A S TA L V I L L A G E S RE G I O N F U N D
CVRF has earned over $1.3 billion in 22 years of operation. Average annual revenue considerably increased in 2010, when the company acquired its own fishing fleet.
FINANCIAL DISCLOSURES
CVRF harvests pollock, cod and crab in the Bering Sea and sells fish products across the globe: Four continents and fourteen countries in 2018
Pollock drives CVRF fish sales
Provides important income source for CVRF projects and programs
Pollock drives CVRF fish sales
2018 sales by species ($) 12% Crab
70% Pollock
18% Cod
ANNUAL REPORT 2 018
27
BOARD OF DIRECTORS
Governance with a local perspective The Board of Directors plays an essential role at CVRF, serving as the governing body that steers the vision, mission, values and policies of the organization. Most importantly, members of the Board provide a critical link between community members and CVRF.
The role and functions of the Board CVRF’s Board of Directors is responsible for governing CVRF’s affairs. The Board makes broad policy decisions and sets organizational goals that the staff carry out. The primary functions of the Board are to act in the best interests of the company and the Coastal Villages region. These functions enable the organization to achieve its purpose of providing the means for development by creating sensible, tangible, long-term solutions for the residents of CVRF’s 20 member communities. The Board makes decisions that balance growth in commercial fishing and sustainable development in CVRF communities. The Board accomplishes this oversight by staying up-to-date about CVRF’s activities and communicating appropriate information to residents. In 2018, the Board of Directors hosted meetings in seven CVRF member communities to share the organization’s goals and financial performance with residents. The Board of Directors also hosted a community meeting in Nome to share information with CDQ residents living outside of the Coastal Villages region. They presented materials on CVRF and the inequities that exist in the CDQ program. The Board looks forward to expanding its engagement efforts in 2019, hosting additional community meetings and increasing its engagement with all 20 member communities.
THEY ARE US AND WE ARE THEM. WE ARE HONORED THAT THESE RESIDENTS ELECTED US TO REPRESENT THEM AND EXCITED TO SHARE SOME OF THE COMPANY’S ACCOMPLISHMENTS OVER THE PAST YEAR WITH THEM.” STEPHEN MAXIE, JR. CVRF BOARD VICE CHAIRMAN NAPASKIAK
CVRF’s Board of Directors and Chief Executive Director. 28
C O A S TA L V I L L A G E S RE G I O N F U N D
BOARD OF DIRECTORS
Architects of the dream CVRF would like to remember community leaders who have served on the company’s Board of Directors and are no longer with us. These individuals helped shape CVRF with their leadership, action and wisdom. CVRF is grateful for their many contributions while serving on the Board.
JONATHAN LEWIS
JOSEPH PANIYAK
JOHNNY HAWK
STEVEN WHITE
CHARLEY CHINGLIAK
LOUIS BUNYAN
CHARLIE SPUD, SR.
HULTMAN “IKE” KIOKUN
CARL MOTGIN
FRITZ WILLIE
NAPAKIAK
NAPAKIAK
PETER JOHN
HENRY “SMOOLAQ” WILLIAMS
WASSILIE BAVILLA
ALOYSIUS AGUCHAK
SEBASTIAN KASAYULI
PETER JOSEPH
CHEFORNAK
EEK
GOODNEWS BAY
MEKORYUK
NEWTOK
QUINHAGAK
SCAMMON BAY
CHEVAK
EEK
HOOPER BAY
MEKORYUK
PLATINUM
I HOPE THAT WHEN PEOPLE VISIT THE JONATHAN LEWIS MEMORIAL CSC, THEY REMEMBER THE MAN WHO ALWAYS STRIVED FOR BIGGER AND BETTER THINGS FOR CVRF AND ITS RESIDENTS.” JANET ERIK COMMUNICATIONS SPECIALIST CHEFORNAK
SCAMMON BAY
TUNTUTULIAK
ANDY CHARLIE, SR. TUNUNAK
Shaping the future CVRF would also like to acknowledge the contributions that sitting Board members made in 2018. Board members provided valuable guidance and oversight that helped move CVRF closer to achieving some of its long-term goals. CVRF staff thanks the Board for their leadership in CVRF’s Get Out the Vote efforts during the 2018 elections and for hosting community meetings that took place throughout our region in 2018.
ANNUAL REPORT 2 018
29
BOARD OF DIRECTORS
Community elections CVRF’s Board of Directors is comprised of democratically elected representatives from each of our 20 member communities. Board members serve six-year terms, and elections take place every two years. All Board members must be permanently domiciled residents of the communities they are representing, meaning that the Board member must have permanent residency and an intent to remain a resident. Elections are run under a standardized democratic process designed to give fair voice to all residents of each community. CVRF welcomed Alfred Ulroan of Chevak to the Board in 2018 and is excited for the eight elections that will take place in 2019. For more information about the upcoming elections, please contact your local CSR.
Communities with elections in 2019: • Hooper Bay • Kwigillingok
• Napaskiak • Newtok
• Platinum • Quinhagak
• Tuntutuliak • Tununak
Board of Directors RICHARD JUNG
STEPHEN MAXIE, JR.
JOHN SAMUEL
GABRIEL OLICK
CHAIRMAN NAPAKIAK
VICE CHAIRMAN NAPASKIAK
SECRETARY PLATINUM
TREASURER TUNTUTULIAK
2016-2021
2014-2019
2014-2019
2014-2019
CARLIE BEEBE EXECUTIVE COMMITTEE EEK
2018-2023
EDWARD KINEGAK
EXECUTIVE COMMITTEE SCAMMON BAY
CHEFORNAK
2016-2021
2016-2021
2016-2021
VACANT HOOPER BAY
GEORGE CHUCKWUK
JERRY IVON
CHEVAK
KIPNUK
KONGIGANAK
2018-2021
2018-2023
2018-2023
2018-2023
ALFRED ULROAN
ROLAND LEWIS
ALBERT WILLIAMS
JOHN ANDY
CLEMENT P. GEORGE
MEKORYUK
NEWTOK
NIGHTMUTE
2014-2019
2017-2021
2014-2019
2018-2021
NICHOLAI STEVEN
DARREN CLEVELAND
CLARENCE DULL
PHILLIP KUSAYAK
OSCARVILLE
QUINHAGAK
TOKSOOK BAY
TUNUNAK
2018-2023
2014-2019
2018-2023
2016-2019
KWIGILLINGOK
30
LARSON HUNTER
EXECUTIVE COMMITTEE GOODNEWS BAY
EVAN S. EVAN
C O A S TA L V I L L A G E S RE G I O N F U N D
MESSAGE FROM THE CHAIRMAN
A message from the Chairman It is easy to be so focused and excited about where this company is headed that we can forget to celebrate how far we have come. During my time on the Board of CVRF, I have seen so much change and growth. We really have come a long way. When I first became involved with CVRF, we used to lease our quota to other companies. We had very little say in what went on in the Bering Sea fishery or decisions made by the companies fishing our quota. Now, we have our own fleet. We have gained control over the assets that allow CVRF to maximize the resources available to our residents. We have become more independent.
RICHARD JUNG CVRF BOARD CHAIRMAN NAPAKIAK
Just yesterday, the Executive Committee and I reviewed information about the Bering Sea fishery, CVRF’s operations, changes in the industry and how everything fits together. No other CDQ group is having meetings like these. No other CDQ board must learn and familiarize themselves with this kind of information because nobody else fishes their own quota like we do. When I think back to how we used to operate to where we are now, I am proud of the decisions we have made and appreciate the risks we took to get here. I feel like we have grown up, stepped up to the next level and we keep pushing forward. To get to that next level CVRF will need to grow and get bigger so that we can do more to help our communities. In 2018, we continued to expand CVRF’s programs and projects to help address some of the biggest issues facing our communities. We built a tiny house in Eek in response to a community survey that highlighted the dire need for housing in our communities. In the coming year we hope to find ways to positively affect other issues facing our communities. Issues like public safety that impact individuals, families and communities across our region. In my community of Napakiak, we recently faced a tragedy that brought to light some of the many flaws that exist in the current public safety system. Our hearts and prayers go out to the victims and families impacted by this painful incident. As long as I serve as the Board Chairman, I intend to stand up for the residents of our 20 communities and will continue to push to grow the organization so that we can address issues like public safety and housing. I remain committed to fighting for fair and equitable CDQ allocations, which would allow us to grow and provide the level of benefits that our residents need and deserve. Progress might be slow, but I refuse to quit fighting because I know we are right, and I know our residents deserve more. Last November, CVRF residents sent a clear and united message to decisionmakers by casting a record number of votes. It was great to see everyone working together, strengthening our collective voice. We have an obligation to stand up for what is best for our communities. Our votes show government decisionmakers that we care about our future and should be taken seriously. I am proud of everyone who made time to make their voices heard in 2018 and I am already looking forward to the next elections in 2020!
PROGRESS MIGHT BE SLOW, BUT I REFUSE TO QUIT FIGHTING BECAUSE I KNOW WE ARE RIGHT, AND I KNOW OUR RESIDENTS DESERVE MORE.” RICHARD JUNG
CVRF BOARD CHAIRMAN NAPAKIAK
The CVRF Board of Directors is more engaged than ever before. I am looking forward to the upcoming community meetings, CVRF Board elections and supporting my fellow Board members in our tireless effort to provide sensible, tangible and long-term opportunities for residents.
ANNUAL REPORT 2 018
31
Anchorage interns and staff on a tour of the Northern Hawk with Factory Manager, Terje Gjerde, in Dutch Harbor. Front row: Jordan Kashatok, Denae Ulak. Second row: Kayla Kugtsun, Brittney Jimmie, Elton Chanar, Terje Gjerde. Back row: Timothy Sherman, Kenyon Paul.
Follow us on Facebook to see highlights from around the region and from the company. We update our Facebook page weekly, and we love hearing from you!
@CoastalVillagesRegionFund https://www.youtube.com/user/coastalvillages1
711 H St. #200 Anchorage, AK 99501 Toll Free #: 888-795-5151