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Draft Minutes - Nov. 7 Fish Committee Teleconference Meeting
Bristol Bay Native Association
1:30 p.m. BBNA Conference Room

Call to Order and Introductions: The meeting was called to order by Chairman Fritz Johnson at 1:32 p.m. He asked those on line to introduce themselves, then introduced those present in Dillingham.

Participants: Fritz Johnson, Robert Heyano, Robin Samuelsen, Barbara Belknap, Johnny Lind, Jon Saarhiem, Stan Small, Bruce Twomley, Chris Mitchell, Gunnar Knapp, Andy Golia, Glenn Haight, Quentin Fong, Trefon Angasan, Kevin, Adams, Adelhied Herrmann, Peter Andrew, Hans Nicholson and Shirley Kelly.

Chairman Fritz then asked for a moment of silence for Johnny Christensen of Port Heiden (Fish Committee member) who passed away on Oct. 10 in a plane crash, and for the recent passing of Hjalmer Olson's daughter.

Approval of Agenda: Robin Samuelson moved to accept the agenda as presented. Seconded by Stan Small. Motion carried.

Approval of Sept. 20, 2001 Meeting Minutes: Robert Heyano moved to accept the minutes as written. Seconded by Robin Samuelson. Bruce Twomley said there a statement attributed to him on page 4, paragraph 7 should be corrected to say that an optimum numbers study is not an issue if a buy back is occurring in a federally managed fishery, but that it is in state-managed fisheries, even if the buy-back is federally funded. Motion was carried to accept the minutes as corrected.

Marketing Alaska Salmon: Barbara Belknap, Executive Director of the Alaska Seafood Marketing Institute (ASMI), said if the State Legislature approved a $10 million grant to promote Alaska salmon, ASMI would spent $5 million on promoting domestic market sales, and the rest on export sales, with promotional programs tailored to specific markets, including Japan, which continues to be "the biggest customer of Alaska seafood." (See attached "Draft Marketing Strategy," ASMI, Nov. 7, 2001)

Belknap said ASMI's staff prepared the draft marketing strategy based on comments from Governor Knowles during his trip to Dillingham last July that $10 million should be requested from Alaska's State Legislature to help the salmon industry.

Robin Samuelson said he doesn't know if the $10 million request will be included in the Governor's proposed budget, or if a new bill will be submitted.

Re: Regional marketing, Belknap said ASMI's board has discussed the concept and is concerned that a big push for regional marketing could overwhelm ASMI with requests for assistance from each region in the state.

Fritz Johnson asked Barbara if she felt $10 million was enough, and Belknap said that marketing is expensive.

Stan Small said that Norman VanVactor of Peter Pan Seafoods told him that Peter Pan can't promote their salmon sales as "Wild Salmon from Alaska" (Stan may have misconstrued this issue because the U. S. Department of Agriculture does not recognize wild Alaskan salmon as being "organic").

Trefon Angasan said that ADF&G is forecasting a total return of 15 to 18 million sockeye for Bristol Bay in 2002, and expect a harvest of 6 to 8 million. He said this will have a huge impact on ASMI's budget, and asked Belknap if ASMI was looking at other ways to raise money.

Belknap said that last year ASMI received an EDA trade assistance grant, and although it looks grim, Alaska has a beautiful salmon, and people value our fish, and we've got to find those markets. She said we've got to "win it through quality and marketing."

Trefon then asked if ASMI was doing any work to receive money from the Exxon Valdez oil spill settlement for marketing. Belknap said this was a long shot, and would more than likely not happen.

The University of Alaska's Role in Buy Back Studies: Gunnar Knapp of the University of Alaska's Institute of Social and Economic Research (ISER) explained that part of a university fund available to study economic development and diversification in the state - provided through an annual $5 million contribution from British Petroleum -- is available to study issues relating to Alaska's salmon industry. Newspaper accounts that a buy-back study of Cook Inlet salmon permits is underway were inaccurate, however, Knapp said. "Options for Restructuring the Alaska Salmon Industry" is one potential study, he said (See "University of Alaska Economic Research Initiative" attached, ISER, UAA). One area of research might be buyback studies for Bristol Bay or other regions, Knapp said. ISER is now soliciting feedback on what ought to be done but won't begin this effort in earnest until after the first of the year. He said the University may travel to communities to hold workshops, and is now inviting suggestions on different types of options such as co-operative ideas, permit buybacks, or fleet consolidation (such as putting two permit holders on one boat). He said if anyone has questions or comments, he can be contacted at (907) 786-7717, or email at afgpk@uaa.alaska.edu.

Robert Heyano said he felt the University should provide funding to each region to conduct their own studies, to find out if common goals exist.

Barbara Belknap said she felt there's a need for a central site to track what other regions are doing, so that people don't reinvent the wheel, and spend money without some type of coordination.

Andy Golia said he felt the University was doing the right thing especially in light of Alaska's troubled salmon industry.

Robin Samuelson said the Bristol Bay Economic Development Corporation will more than likely have the Bristol Bay Science and Research Institute complete a white paper on buyback options, and if they need any help, they'll contact ISER.

Gear Reduction Options for the 2002 Fishing Season: Kevin Adams said he's in favor of reducing gear through permit consolidation.

Stan Small said gear restrictions would hurt everyone and create a bigger mess. He said the problem we have with our fishery is that we've changed the rules too much. He spoke about how we've eliminated the mesh size, set up allocations, and changed this fishery for the worse, and we don't need any more changes.

Robin Samuelson said he felt he's not in the position to make any recommendation on any gear reduction option, and that there's 3,000 permit holders who need to be involved with making these types of decisions. He said we need to spend more time flushing out the options, and asked if BBNA was going to attend the Fish Expo to explain the options.

Fritz Johnson said the committee has power to do anything, and with an 8 million harvest amounting to a $20 million ex-vessel value, it means fishermen will make $2,800 to $7,000 which means we're looking at a pretty skinny season.

Robert Heyano said the committee is acting in lieu of a regional fishing association, and that we need to weigh the consequences of doing nothing. He said marketing is a long-term solution. In the short run, Heyano said he favors permit stacking and allowing fishermen who have two permit holders on their boat to use 200 fathoms of gear. He said financing issues also need to be addressed.

Bruce Twomley said that Pat Martin is planning to have an UFA restructuring meeting during the upcoming Fish Expo in Seattle, and asked if Robert had any comments on UFA's restructuring meeting recently held in Petersburg.

Robert Heyano said he attended the meeting, and that there was agreement for a voluntary buyback program. He also said there was a good suggestion that regional organizations be formed to buy back permits and hold them.

Glenn Haight said that UFA is planning to request $1 million from the state to look at restructuring options for salmon fisheries throughout the state.

Adelhied Herrmann said she felt that the Fish Committee should offer a meeting with just Bristol Bay fishermen to sort out what needs to be done to our fishery. She said that UFA is preparing a legislative package, and we need our own brainstorming session with fishermen to identify short-term goals.

Robin Samuelson said that he recently read in the Anchorage Daily News that the Alaska Seafood International plant in Anchorage was planning to process farmed salmon and this shouldn't happen, especially when the state of Alaska financed the plant to get it started. Barbara Belknap said she's sure the state legislature will have something to say about that.

Robert Heyano said that we can't afford to have any in-region fighting, with processors or among ourselves. He said the tourism and oil and gas industries are collective in their lobbying efforts, and that's why they're so effective in Juneau.

New Business: Fritz Johnson said there is nothing to prevent Bristol Bay fishermen from meeting on our own. He than asked the committee for direction. Adelhied Herrmann suggested that perhaps the fisheries issues that Bristol Bay fishermen face be addressed at BBNC's Village Leadership workshop in early December.

Robert Heyano suggested that a stronger effort be made to get more fishermen involved with the committee meetings.

Robert then asked if Jon Saarhiem was willing to elaborate on his proposed labeling requirements. Jon said he'd like to see the U. S. require labeling of salmon showing: 1. Country of origin, 2.) Species, and 3.) If the salmon is wild, farmed, or hatchery raised.

Barbara Belknap said that in Europe salmon are labeled showing origin, and in Japan, salmon must be labeled showing whether they are farmed or wild salmon. She said she felt the lobby against labeling requirements will be strong, and that while processors may have heartburn over labeling requirements, it's likely that the U.S. will eventually follow the lead of the European Union in providing more information on labels.

Jon Saarhiem said there have been 122 studies on the benefits of Omega 3 oils, and none of them showed any downsides. He said he felt that consumers have to be educated on what they're buying.

Barbara Belknap said that while labels can indicate salmon is a natural source of Omega 3, they can't claim its good for the heart, according to FDA regulations.

In other new business, Robert Heyano said he recently has seen an agreement with the Division of Investments and a borrower that extends the client's fishing loan for 10 years.He said in the agreement, the first five years in payments will be used to lower the principal, and the accrued interest for the first five years will be deferred. After that, payments will be increased to pay off the principal and accrued interest. He said we've got to convince the state that this type of modification should be made available to Bristol Bay fishermen.

Peter Andrew said he's currently negotiating with DOI, and DOI is asking for more collateral with his loan.

It was agreed that Greg Winegar of DOI be invited to attend the next Fish Committee meeting to elaborate on the super modification agreement, and that both Bernice Heyano and Jerry Liboff be invited to participate.

Robert Heyano said he's also aware that the hatchery people are currently negotiating with the state on lowering their interest rates, and we should get the same breaks as fishermen.

Hans Nicholson said he knows of fishermen who can't make their payments, and are ready to default on their loans or declaring bankruptcy.

Johnny Lind then said that fishermen in the Chignik area are organizing into a cooperative and have submitted a proposal to the Alaska Board of Fish requesting an allocation, and the fishermen are still working on the details. Robert Heyano asked if the fishermen were planning to obtain support from the local Fish and Game Advisory Committee. Johnny said there's some fishermen who don't like the proposal, however if they stand to benefit from the proposal, then they would favor it.

Time and Place of Next Meeting: Robin Samuelson suggested the next meeting be left up to the call of the chair. There were no objections.

Adjournment: The meeting was adjourned at 3:50 p.m.

Respectfully submitted

Andy Golia,
Nov. 9, 2001

Draft Minutes - Sept. 20 Fish Committee Teleconference Meeting
Bristol Bay Native Association

Called to order by Chairman Andy Golia at 1:00 p.m. who asked participants to introduce themselves.

Participants: Andy Golia, Glenn Haight, Jim Browning, Myra Olson, Leroy Wallona, Robert Heyano, Peter Andrew, Fritz Johnson, Gunnar Knapp, Robin Samuelsen, Lt. Gov. Fran Ulmer, Hjalmar Olson, Mike Davis, Rose Heyano, Tim Sands (ADF&G), Norm vanVactor, [Division of Investments representative]), Barbara Belknap (ASMI), Terry Gardiner (Norquest), Mark Herman, Michael Link(?), Ralph Andersen, Hans Nicholson, John Christensen [et al.]

Robin Samuelsen thanked Lt. Gov. Ulmer for attending, noting she has kept apprised of developments in Bristol Bay fisheries since it became apparent 2001 would be a poor season. Summarizing the economic disaster to the region, he added that the problems facing Bristol Bay are endemic to the salmon industry statewide and is not a short term situation. "This problem is so big we can't take care of it ourselves. We need to reinvent the Alaska salmon industry."

Lt. Gov. Ulmer thanked Samuelsen for the introduction and said she commends everyone involved in making the effort to try "to puzzle out what the options are." Ulmer said she has been talking with industry stakeholders statewide and agrees the problems aren't going to go away. "The problem is about market conditions that seem to be beyond our control," she said. "We need short, mid and long term solutions." The governor's disaster resolution is an immediate response, but the bigger question is "what do we do in the long term." Job and economic summits are being planned. In recent days Ulmer said she has met with the Alaska Seafood Marketing Institute's directors and fishers from "all over the state" representing "a wide variety of gear groups and attitudes." What she has found is "a willingness to go beyond regional differences." There's not one solution, she said - what works in Bristol Bay may not necessarily be the solution elsewhere.

One thing state can do is promote participation with all those involved and continue a dialog aimed at finding solutions.

Second she said the state can be a willing and supportive partner after local people have sorted through their options. This can't be a "top down solution," it has to come from the local level.

Third, she said the state can continue to work with regions on economic diversification. "We've got to look to other options."

Glenn Haight has been taking notes at all meetings Ulmer has attended and it was suggested that there may be a spot on state web page to share thinking on the problems. She asked for list of Bristol Bay recommendations.

Andy Golia thanked Ulmer for coming, affirmed that "we've got a big job ahead of us" and asked if there were questions for the Lt. Gov.

[New joiners: BBNA's Terry Hoefferle and DeeDee Bennis, Jody Seitz (KDLG), Adelheid Herrmann, Kevin Adams…]

Chairman called for approval of the agenda, Robin Samuelsen so moved, seconded by Terry Hoefferle. The chairman requested a change under new business to add an update on crop insurance for fishermen by Chuck Hamel, UAF research associate, and the revised agenda was approved without objection.

John Christensen of Port Heiden moved to approve the minutes of the July 26 meeting; Hjamlar Olson seconded. With a verbiage correction requested by Glenn Haight, the minutes were approved.

Under Old Business, the Chairman Golia asked Gunnar Knapp for a report on a permit buy-back study being undertaken by the University of Alaska. Knapp was temporarily absent, but Robin Samuelsen said he had questions about the University study. Reports from Cook Inlet fishermen are that they are nervous about the study, fearing it won't be objective and may favor sports fishing to the detriment of commercial fishing.

Myra Olson agreed, saying without local participation in developing the study "it would a top down rather than a ground up solution."

Robert Heyano agreed, but added that while there seemed to be a consensus that a buy back ought to be looked at, information from the CFEC suggests that a buy back may not be a good idea.

G. Haight said he'd spoken with Gunnar Knapp who indicated the Cook Inlet study is not yet firmed up. But money has been set aside for salmon studies, Haight said.

Chairman Golia agreed that any optimum permit number study, for example - must be a credible one.

ADF&G's Jim Browning, referencing CFEC material, said it indicated 1650 would be ideal for Bristol Bay and there are now around 1950 due to litigation, etc. Is there a mechanism to return to the original optimum number?

Andy Golia noted Don Nielsen has said an optimum number study would likely be challenged in court, and asked CFEC Chairman Bruce Twomley to elaborate

B. Twomley said there has been no optimum number determination for Bristol Bay - the 1650 was a maximum based on historic participation. He stressed that CFEC has proposed to do an optimum numbers study, but added that buy back provisions in the state's Limited Entry legislation is legally flawed. But since there are federal provisions for buy backs, he added it seems appropriate that we continue with an optimum numbers study in light of those possibilities. Such a study could aid fishermen's deliberations. A buy back would require a vote of 2/3's of permit holders. To R. Heyano, Twomley said he was sorry if CFEC material seemed negative to the idea. That wasn't the intention but CFEC wanted to outline the risks involved, specifically the danger that money fishermen use for a buy back could it be lost through litigation.

Browning: The 1650 number, that was the original maximum set?

Twomley: No. The original number - 1528 - simply an historic number we were required to identify by statute. Various lawsuits intervened. The framers of limited entry recognized we'd probably go over. [Something] would trigger a state buy back - that's broken - taxing fishermen to 7% to fund. Now "optimum numbers" only mechanism -

Asked specifically if CFEC was embarked on an optimum numbers study, Twomley said the staff is directed to determine what's needed to do it and "we plan to undertake one unless we're persuaded not to."

Samuelsen asked how long such a study would take, in light of the federal Magnuson Act's reauthorization timeline, approx. 15 months away. A previous study in a smaller fishery took two years to complete, Twomley said.

Ulmer said two years is not realistic "considering just how quickly people are going bankrupt around the state." In other regions fishermen are considering other options, and she asked if that was the case in Bristol Bay.

Twomley said CFEC is happy to work with Bristol Bay residents on any options that might seem attractive, such as more than one permit per boat, or A and B type registration options, that could operating costs.

R. Heyano said while an optimum numbers study may be part of a long-term solution, the current number is too many and "we need the study." There are other things we can do quickly though.

Hjalmar Olsen asked who pays for study, and if anyone knew what a buy back would cost, since fishermen pay for it?

R. Heyano asked if a buy back is required if a study is done?

Twomley said no the study is just used to defend a buy-back in court and to determine if it would be functional to the fishery.

T. Hoefferle said his informal calculations indicated, assuming 500 permits bought at $50,000 each and a 20 million fish harvest, if those remaining in the fishery assessed themselves 5 cents a pound they could pay back a federal loan in eight years.

R. Samuelsen noted there are precedents in other fisheries but added that a window of opportunity that may disappear with changes in Congresional leadership. "We've got to move fast on a number of fronts," he said.

Terry Gardiner asked why two years?

Twomley said the study has to be professionally done so as to be defensible in court. The ultimate controlling factor is the Alaska Constitution. The state Supreme Court has said limited entry is Constitutional only if it impinges as little as possible on the open to entry provisions.

Ulmer asked who did optimum numbers study for the crab and trawler buy backs, to which Twomley said such studies were not an issue if a buy back is federally funded.

Ulmer asked about a "dual track operation," pursuing a federal buy back while beginning an optimum numbers study to cover possible legal contingencies.

Hoefferle asked if an optimum number study would require apportioning permits according to their historic geographical distribution.

Twomley said no but expressed the concern that under a buy back more watershed residents might opt to sell out.

Chairman asked if the committee would like to begin considering draft recommendations.

Re: the question of overcapitalization, Robert Heyano said "Like Fran said, let's do the study and seek federal money at the same time."

Jim Browning asked if funding could be sought before a study was done. And would reducing the number of permits by some as yet to be determined amount actually "give the individual permit holders the relief from what we saw in problems this year? If not, what's the bigger fix?"

Ulmer said that's an important point. "You've got to reduce the number of boats - but that's probably not adequate to fix the whole problem." You've got to look at several tracks reducing the number of boats is a part of it. An optimum numbers study is really about defending that reduction.

Glenn Haight: Whether an optimum numbers study is pursued or not there are a lot of other options.

Hoefferle said if an optimum numbers question considers the income likely to be realized, the requirements of watershed residents are probably different from non-residents.

Samuelsen said that "30 years ago a 20 million sockeye run would have been great but today 20 million sockeye at 65 cents barely sustains this community. We need to look at other models on buybacks," then approach our Congressional delegation with suggestions for an overall comprehensive plan. Citing work by the North Pacific Fisheries Management Council, he suggested that a study could be completed more quickly.

Twomley reiterated "there's a lot of work involved. It's not that anyone's dawdling. It's a very complex task, and it has to be defendable in court."

Golia: "We're going to need input from fishermen."

Twomley: a study could end up frustrating local goals. of encouraging goal study could frustrate local goals

Browning asked is a private corporation could buy up and retire permits.

Twomley: An individual can buy permit and let it expire. It's feasible. The question remains, who's going to sell out?

Golia: "We've already lost 400 plus resident permits," and half are now owned by non Alaskans. A revolving loan program could encourage local permit ownership. But it's a double-edged sword.

H. Olson: If we had 500 less permits, would that fix things? I want to earn more for my salmon. Is a buy-back our priority?

Golia: I think we all want a buy back.

R. Heyano: It's just one thing to consider. As Fran said, there is no one solution. In my opinion, it's the number one priority - reducing participants. The revolving loan fund idea took me by surprise. If the committee thinks it's important we ought to discuss it independently.

Myra Olson: A buy back is long term and ought to be pursued separately from other issues. Communities are dying. Schools are closing, stores are closing - in the next few years we're going to see some serious problems in this regard. How do people on the grounds feel about this? We need to deal with immediate concerns. What's do-able? And what protections can we put in place to prevent out migration of permits while this is going on?

Samuelsen: Trying to incorporate social engineering into a buy back program will destroy it. Permit holders are business people. Those that stay in the fishery under a buy back will benefit. We've got to set goals and objectives, and there are different phases - it's going to be pretty complicated and could disenfranchise a lot of people. There are constitutional questions and real legal problems. The problem of keeping permits local is another goal.

This is not a short term thing, Samuelsen emphasized. If a salmon fishery opened today, no one would pay 40 cents a pound for sockeye. Farmed fish prices are rock bottom. The number of fish buyers in the Bay has dropped by more than half in 20 years. We need to be realists. We need a multi-faceted approach.

H. Olson: We need to be cautious about the interpretation of a buy back. "AIFMA sees it as a retirment program for their fishermen." He cited squabbling over the disposition of Exxon oil spill settlement funds as an example of how greed can corrupt efforts to be fair.

Golia: Let's move on. A buy back won't happen soon. We're looking at a couple tough seasons

Re: the idea of fish traps, Golia said that's "a long row to hoe." I think it's achievable, but it would take a long time. The question is, are we going to be in the same boat next year? Let's see something that we could take to the board of fish. He cited the example of San Francisco herring fishermen, who eased the problem of too much fishing effort by requiring two permits per boat. Such a change would take a Board of Fish agenda change request and may be easier said than done.

Ulmer said that at talks in Juneau, this subject also came up, to ask the Board of Fish to consider regional solutions that would change the rules region by region, and that the board ought to provide a window to consider such changes. Perhaps someone ought to propose such a window.

R. Heyano: Board regulations might prevent that.

Fritz Johnson: those regulations ought to be changed

Glenn Haight There are a number of options outlined in [CFEC's "Outline of Options for Fleet Consolidation in Alaska's Salmon Fisheries," Dec. 1998.]

R. Heyano: Lets not waste time on fish traps. Besides reducing harvesting costs, how about reducing processing costs?

T. Hoefferle: Broadening that topic, how about reducing production costs, including transportation and marketing?

Olson: We don't take good enough care of the product

Browning: I'm not a proponent of fish traps, but say we do come up with a marked reduction in the cost of production? Is a 32-foot gill-netter the most efficient method of harvest? There may be some centralized harvesting mechanism. The numbers we're looking at short and long term would seem to dictate a change is needed.

F. Johnson: Re: fish traps: never say never; an acceptable plan might evolve.

Peter Andrew: cited fishermen talks re: a permit holder combine using seiners to cut harvest costs, and asked about insurance pool.

Samuelsen described BBEDC efforts to market Togiak salmon in Europe last summer where "the transportation factor was extreme." The market was there, but transportation logistics were seriously flawed. We need infrastructure, i.e., airport improvements to provide more options for flying fish to markets. We're getting down to so few processors, they ought to have cost effective options.

Hoefferle: Absolutely. Said he's been frustrated in efforts to extend, for example, the Clarks Point airport an extra 600 feet to facilitate flying fish, even though the airport is presently undergoing improvements. More cooperation from Dept. of Transportation could remedy that.

Ulmer: "Sounds like a no brainer to me."

Terry Gardiner: If we just look at Bristol Bay we can see it isn't working. Drastic surgery is needed but that won't fix the suffering people are going to be feeling 10 months from now We need to think of these same problems in context of other fisheries statewide. Herring and crab…it's a much bigger problem than just Bristol Bay salmon. They're the same problems bringing Bristol Bay processors and fishers to their knees. We need a broader coalition of similar interests to get any attention at state and federal level.

Adelheid Herrmann brought up the question of marketing.

T. Gardner: It's macro-economic forces are that are breaking us. We shoudn't confuse those with marketing efforts. Bristol Bay sockeye are selling in Japan now for 500 yen per kilo, but Chileans are only bringing 300 yen per kilo. The herring numbers don't work either. We could always spend more in marketing. Every year (in business) you have to ask if you can produce a new and better product - that's just part of business. Marketing is a constant, but it's maybe ten percent of what we need. Eighty to ninety percent of what we need is economic reform, so people can make money again and not have to subsidize fishing.

Gardiner said he had to sign off the teleconference but would forward additional written comments.

Golia: Do we need another committee, charged with finding ways to reduce production costs?

Samuelsen agreed to Golia's suggestion that BBEDC organize the new committee

Re: extending term of state fishing loans to 30 years, Golia said he'd seen amortization figures indicating no great advantages to borrowers; payments might drop $1000 a year interest charges over the term of the loan would increase.

R. Heyano: This is both a short and long-term issue. What happens if we don't do anything? These are issues we have to explore, if just to keep folks afloat until there are other long-term solutions.

T Hoefferle agreed, saying the Finance Committee may be looking at the question in more detail. More information may be available, as the Oct. 1 due dates on loan payments nears.

R. Samuelsen: We should drop it. There was a time when permits collateralized boats. Now we've got the Bristol Bay Permit Brokerage. The main problem is borrowers who won't talk to lenders. Experience shows as long as dialogue continues lenders will try to help. People need to want to help themselves.

R. Heyano: The information shows extending loan out doesn't help, it just buys time. If the intent is to save individuals in the fishery, how do we get around that? Why wait to adjust financing until a person is in too deep?

H. Olson: Making additional loan concessions and assistance available could be making the problem worse.

Golia (moving to Page 2 of the draft recommendations, beginning with marketing): Can we consolidate some of this to (Samuelsen's) reducing production costs committee?

R. Heyano: It goes together - it's all production costs.

G. Haight: Quality is a big issue all by itself.

Golia: Ice costs $200 a ton here, $50 in Homer. We've got a problem. Even taking ice is a problem here. But fishermen, myself included, are likely to adopt it.

T. Hoefferle: Let the new committee chew on that one.

Barbara Belknap: Could I offer Randy Rice as a committee member?

Kenny Wilson: Peter Pan didn't pay an RSW bonus this year. Yet with the 4 - 6 hour openings last season, we delivered the best quality ever.

R. Heyano: This concerns ASMI. Do we need to review ASMI's regulations to make it more effective?

B. Belknap: ASMI does have constraints. The 1% for domestic marketing can't be spent elsewhere. Federal money has restrictions too - of $3 million this year only $700,000 can go to Japan. We also can't market a brand or a region.

[Glenn Haight left, saying he had to catch a plane.]

Ulmer: ASMI money comes from fishermen, when fishing fortunes are down, ASMI's budget is down. So when times area tough, marketing is even tougher.

Golia: Should I add a bullet here requesting a $10 million state appropriation to promote salmon?

R: Samuelsen: Better might be a creative way to raise money to promote sockeye.

B. Belknap: When fish tax revenue comes in, there's still some that goes to the state's general fund - that formula might be adjusted.

Golia: Perhaps the next meeting should focus on marketing.

Myra Olson: I have to go. But regarding marketing, I'd like to see some of the weighty expensive regs that inhibit direct marketing removed. [She also offered the help of the Lake and Peninsula Borough in helping disseminate information re: the committee's work.]

Golia: We are going to get into those regulations. Is Chuck Hamel here [re: crop insurance for fishermen]?

Samuelsen: Asked Belknap to propose changes to help ASMI get "the best bang for buck" for enhancing marketing statewide.

B. Belknapp agreed to be on the agenda for the next meeting.

Samuelsen said the idea of a trade delegation to Japan is being pursued.

Josh Greenburg summarized the status of the fishermen's crop insurance plan, saying many details have yet to be worked out but an initial report from UAF should be available by mid-October.

Ulmer thanked the committee and said she had to leave; Samuelsen excused himself too. (4:10 pm).

Golia: Re: a catcher seller subcommittee to look at inhibiting regulations. Called for volunteers in addition to Greg Fisk, Fritz Johnson, Andy Golia, Myra Olson, Jon Saarheim, Kevin Adams and a representative from Representative Mary Sattler's office and the Department of Environmental Conservation.

Golia then said health problems were compelling his resignation as chairman. R. Heyano nominated Fritz Johnson, seconded by H. Olson. Fritz Johnson nominated Tom Tilden to no second. R. Heyano moved nominations be closed and Fritz Johnson was named new chairman with no objection.

R. Heyano thanked Golia for his work on the committee. F. Johnson agreed to survey members as to time for the next meeting and the meeting was adjourned at 4:22 p.m.

Respectfully submitted
Fritz Johnson
21 Sept. 2001

Aug. 30, 2001 Minutes
"Moving Beyond the 2001 Commercial Fishing Season"
Teleconference at BBNA Conference Room
Dillingham, Alaska

Welcome and Introductions: The meeting was called to order at 1:30 p.m. by Chairman Terry Hoefferle, Chief of Operations, Bristol Bay Native Association (BBNA), Dillingham.

Participants Present In Dillingham: 28 sites participated and 19 were present in Dillingham. BBNA-Terry Hoefferle, Dee Dee Bennis-Audio Recorder, Fritz Johnson, Helen Chythlook-Recorder, Andy Golia, Anna Mae Miller, Brenda Akelkok and Pearl Strub. BBEDC-Dorothy Wilson and Robin Samuelsen. Aleknagik Natives,Ltd. & Ekwok Natives, Ltd.-Fred Nishimura. BBNC-Harvey Samuelsen. BBHA-Andy Anderson. BBAHC-Darrel Richardson. Choggiung, Ltd.-Tim Troll. Curyung Tribal Council-DuWayne Johnson. Ekuk Village Council-Robert Heyano. USDA-RD-Daryl Lowe. Fisherman-Thomas Tilden. Bristol BayTimes-Misty Nielsen.

Teleconference Participants: ADF&G-Commissioner Bruce Twomley, CFEC, Juneau; ASMI-Barbara Belknap; BBNC-Trefon Angasan, Sr., Inez Webb, Kevin Adams, Paul Roehl; Bristol Bay Borough-Jeff Currier; Chignik Bay Village Council-Minnie Skonberg, Roger Carlson (plus 5 participants); Chignik Lake Traditional Council-Johnny Lind; DECD-Glen Haight; Paul Ancell; DOL-Pat Freeland, Dillingham Job Center; Karl Ohls; Liz Williams; Sharon Wilson-Naknek; Janet Thompson; Division of Investments-Kelly Sharp; EDA-Wes Campbell; Ekwok Village Council-Jim Hurley; Jim Olson; Tom Hurley; Cindy Olson; Dept. HSS-Low Income Energy Assistance-Mary Riggen-Ver; Governor's Office-Bob King, Press Secretary; King Salmon Village Council-Steven Angasan; Manokotak Village Council-Moses Toyukak, Sr.; New Stuyahok Village Council-William Gumlickpuk (plus 6 participants); Newhalen Village Council-Agnes Rychnovsky; OSG-Washington, D.C.-Ken Reinfeld; Port Heiden Village Council-John Christensen; SBA-Richard Lopez; Senator Carl Moses' Office-staff-Tim; Twin Hills Village Council-John Sharp; William Ilutsik; LeRoy Wallona; Yukon Fuel-Mark Smith; Andrea Antoine.

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Terry Hoefferle gave a brief overview of Governor Knowles economic disaster declaration in the Western Alaska communities due to the poor salmon fishing season. The Governor will take five actions in response to this economic disaster: 1. Governor Knowles will write the President of the United States to make him aware of the seriousness of the situation and will request the President's assistance in marshalling federal resources and in seeking additional federal funds to assist in diversifying the economies in the affected regions. 2. The State of Alaska will seek federal transition funds to assist communities in adapting to changing economies. 3. The State of Alaska will pursue needed research which will tap the knowledge and skills of local people and organizations on the biology and science of salmon runs of Western Alaska, changing ocean conditions, and the ocean survival of Alaska salmon. 4. The State of Alaska will seek ways to improve marketing opportunities for Alaska wild salmon, including regional marketing. 5. The Department of Community & Economic Development (DCED) will organize a Coordinated Response Partnership (CRP) for all agency responses to the economic disaster. State agencies will act, through the CRP, and consistent with their existing statutory authority, to assist communities with utilizing existing state and federal assistance and with developing long-term goals and strategies for economic diversification.

BBNA and DCED will host job summits during the Fall and Winter of 2001. The Department will coordinate with the unions, Associated General Contractors, Denali Training Fund, training institutions and federal and state agencies to discuss rural construction projects and training opportunities available to the regions.

BBNA and DCED will also plan economic summits to be held in the next six months to focus on long-term issues such as fisheries industry restructuring and economic diversification, and strategies to meet regional economic development goals.

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BBNA's web page address: www.bbna.com. Minutes of Committee meetings will be posted on this web page for participant and public review. Persons interested in having their email address added to committee mailing lists can write bayweb@bbna.com.

Terry Hoefferle thanked the 20 Bristol Bay villages for submitting resolutions declaring a disaster in their communities, boroughs, tribal councils, city governments and other supporting entities.

Curyung Tribal Council thanked BBEDC and BBNA for doing the leg work in getting this moving.

Other Comments/Perspectives on Governor's Disaster Declaration:
BBNC-One of the things that the Governor mentioned was the possibility of restructuring the fisheries. Is the fishing fleet reduction going to be part of BBNA's Fisheries Committees dialogue? Another item on the agenda-Federal participation in the Bristol Bay disaster, has SBA pursued the federal government for FEMA Disaster funds?
SBA-SBA is still waiting for word from the feds. If disaster comes from the feds it will be from farmers rather than SBA. If they declare another disaster, SBA loan borrowers have to be current on their loans.
BBNA-The Bristol Bay economic disaster declaration was important to SBA to accommodating borrowers. Crop Insurance idea will be discussed by the Fisheries Committee and this may be in place by next year.
Harvey Samuelsen-The Governor should have declared a natural disaster out here. The two-year ocean fish never showed up, and it's a natural disaster by the fish not showing up.
EDA-EDA does not have any additional disaster funds. Congress needs to pass a bill for additional funds.

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Committee Reports
1. Human Needs Committee-Fred Nishimura, Chairman gave a brief report. There have been fuel barge scheduling problems, food and clothing, and financial problems in meeting payments. Concerned about community health and safety issues. This committee will deal with fuel needs and immediate human needs in the villages. Mainly working with Yukon fuels in getting fuel delivered to the Nushagak River villages. Another main concern is 200 Bristol Bay fishermen aren't able to meet their SBA, Bank CFAB or Division of Investment loan payments and other bills. The Human Needs Committee came up with an Action Plan to form subcommittees to deal with issues on fuel, financial, human well-being issues-mental health and community health issues. We need to discuss the economic development issue today.

2. Fuel/Transportation Subcommittee-Anna Mae Miller, Chairman gave a brief report. Committee identified following fuel purchases in New Stuyahok, Koliganek, Pedro Bay, Iliamna, Newhalen, and Kokhanok. Yukon Fuel designated BBNA as the fuel administrator to assist them in village home fuel delivery of fuel and home heating energy assistance. BBNA provides outreach to the villages and have received energy assistance applications from the following: Ekwok had 13 applicants; Iliamna 5 applicants; Kokhanok 23 applicants; New Stuyahok 71 applicants, totaling 168 applications received. 10 applications were denied, 2 are pending and 156 applications were approved with $164,010 expended for energy/heating fuel assistance. Energy assistance program starts accepting applications September 2, 2001 and they should be available in tribal council offices early next week.

Mary Rigger-Ver, State's Low Income Home Energy Assistance Program (LIHEAP) -The whole Western Alaska has been declared a disaster area and we have put a special system so these communities will have priority processing.

3. Financial Subcommittee-Andy Golia gave a brief overview. He said Bernice Heyano, Bristol Bay Permit Brokerage was instrumental in combining financial institutions and IRS travel to villages to assist fishermen with financial difficulties in meeting their financial obligations, such as boat and permit payment problems.

Golia asked Bernice Heyano for information on status of Bristol Bay fishermen loans. He said the Division of Investments has 166 loans and CFAB 30 plus loans. SBA loans currently exist in Bristol Bay, and sold their loans at a loss to private investors.

Dorothy Wilson said the Financial Subcommittee met on August 5th. CFAB, BBNA, Curyung Tribal Council, SBA, IRS and fishermen participated. Identified how many loans financial lending institutions have in effect in Bristol Bay: CFAB has 33 loans in 18 Bristol Bay villages; Division of Investment has 163 loans; SBA didn't have any report available to the subcommittee. BBEDC hosted these entities the past three weeks, who contacted clients, and filled out loan extensions when the financial lending representatives traveled to villages. They are having difficulty contacting some clients in communities. September 1st is the loan due date. BBEDC did plead some leniency for clients due to the hunting season and now loans will be due October 1, 2001. The Financial Subcommittee will meet on September 15, 2001. BBEDC is the liaison for Bristol Bay loans in contacting lending institutions to get loans processed before they become delinquent. Once loans become delinquent the lending institutions can't do anything.

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Discussion:
SBA sold some Bristol Bay loans to private lenders at a loss and fishermen must now make payment to them. Dennis Andrew of New Stuyahok indicated that his SBA loan was sold to a private lender and he doesn't know who they are and doesn't know how to get a hold of them.

New Stuyahok energy assistance ranges between $400-$800 and this won't cover village fuel costs and the homeowners will have fuel shortage problems. New Stuyahok mentioned Jim Sanders and IRS came, but would like SBA representatives to assist residents with delinquent small business loans.

SBA contact person: Terry Moore or Richard Lopez at 1-800-755-7034. SBA is limited on what they can do and cannot refinance old debts. The last week of July they sent notices to lenders stating their loans were on the active sales list. Sales 6- 110 loans guaranteed from various sales from the disaster.

Twin Hills resident commented he won't be able to meet his loan payments. He contacted SBA offices, and the representative treated him rudely and didn't give him a chance to discuss his financial loan problems.

Division of Investments- Individuals need to contact their office early. Now that a disaster has been declared, they are going to waive the $100 application fee for the extension. They are aware of financial problems fishermen have and are going to be helpful to those who contact them early before their loans become delinquent. They will look at each account on an individual basis situation.

Robert Heyano-Ekuk-Has there been any discussion on restructuring these loans on economic down turn, rather than skipping a year loan institutions should look at long term solutions. Home mortgage loans are for 30 years at reasonable rates.

Andy Golia mentioned that issue was discussed. Dennis Andrew of New Stuyahok indicated he felt outstanding loan terms be extended from 15 years to 30 years. Ed Crane indicated if a $15,000 loan term was extended for 20 years, the savings would only amount to $1,000.

Terry Hoefferle asked financial lending institutions such as CFAB, DOI to provide figures of how many people in Bristol Bay have loans and to provide loan status figures.

Trefon Angasan commented on discussion of changing the face of loan suspensions, loan forgiveness that wouldn't put borrowers deeper into debt. It takes years to recover. He was concerned about Nushagak River village fishermen and LeRoy Wallona of Twin Hills who won't be able to pay off their loans from last year and from this disaster.

Tom Tilden mentioned if financial subcommittee is looking at restructuring loans they need to look at additional costs of doing it.

Harvey Samuelsen, Sr. -Village people who provide small business services need to be included too. I would like to see some help for the village stores, air taxi services and other services in the villages. Look at how our fisheries are doing. The State-runned fish hatcheries in S.E. Alaska; the State created problems when it started selling hatchery fish. There isn't any salmon all they way from Bristol Bay North. We are going to have disaster after disaster from this area.

Jim Hurley asked if people wrote letters to Congress asking if they can get forgiveness on their SBA loans as farmers do. SBA replied that was a possibility but they are far and in between.

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4. Public Health & Safety Sub-Committee. There wasn't any sub committee formed at the time of this meeting. Darrel Richardson, BBAHC gave a brief overview of issues that need to be reviewed by the sub-committee due to the possibility of increased: alcohol, substance abuse, domestic violence, and mental health problems. Possible action plans would be to identify these problems and what can be done in dealing with them. Need to identify village needs because village service needs may be different than what BBAHC has been delivering.

Brenda Akelkok (BBNA) is interested in looking into personal hygiene grants for these issues. If people have financial problems, they would be more eligible for Medicaid and Denali Commission Kid Care. She is concerned people will postpone primary health care needs until they become an emergency. BBAHC and BBNA should consolidate and regionalize jobs to make available to communities.

Public Health & Safety Committee (Interested Participants):
Brenda Akelkok, BBNA; SAFE, Dillingham; Tom Tilden, Dillingham
Agnes Rychnovsky, Newhalen; Johnny Lind, Chignik Lake; Minnie Skonberg, Chignik Bay; William Gumlickpuk, New Stuyahok.

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5. Fish Committee. Chairman Golia gave a brief report. The committee was assigned to come up with both short-term and long-term recommendations to restructure Bristol Bay commercial salmon fishery for the survivability of fishermen and processors.

The committee is working on rough draft recommendations on: a). addressing overcapitalization by taking a look at the economics of a buyback program for the drift fleet; b). improving the market of Bristol Bay salmon which would encourage a Bristol Bay fishermen trade delegation to meet with Japanese salmon buyers to mend existing relationship; c). make recommendations to conduct salmon research in all districts in Bristol Bay; d). education-encourage the National Marine Fisheries Service to come to Bristol Bay and host meetings about their federal buy back programs administered by them.

On September 20, 2001, Lt. Governor Fran Ulmer will be participating at its next meeting in BBNA Conference Room at 1:00 p.m.

Discussion:
Harvey Samuelsen -The Chilean government and the Norwegians are selling farm fish on the market, has this been addressed?

Chairman Golia response was Glen Haight recommend Section 201 of the Trade Act to impose restrictions of salmon farmed fish.

Agnes Rychnovsky was concerned about what happened a few years ago during the break out session, ADF&G was using their catch boats to test for salmon figures which came up to 300 pounds. Does anyone know the fish test boat figures for this year?

DuWayne Johnson wants to know where the bulk of the fish came from this year.

Timothy Wonhola-concern about this fishing season although he medical transferred his fishing permit. The low salmon .40cents per pound prices can't make his financial ends meet. Division of Investment was in New Stuyahok and told Tim Wonhola he was going to lose his permit. He was wondering if he could borrow from CFAB, SBA or from other financial lender. Each September he usually meets his boat/permit payments, but with the bad disasters he hasn't been able to meet his payments.

Tom Tilden-Likes the idea of Fish Committee looking at fish prices. Togiak paid .40 cents per pound for chum salmon while Nushagak paid .10 cents per pound. Look at Kodiak and see what they did to get .60 cents a pound.

Chignik area-We get left out and we are involved with Bristol Bay. We've got problems ourselves. 30% of fishing permits are from local year round fishermen and the rest are from outsiders. Minnie Skonberg commented she agrees with John Lind's comments.

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6. Economic Development: (create a committee?)
This committee would deal with economic diversification and other elements of economic recovery.

Discussion:
Agnes Rychnovsky- ADF&G closed down Lake Iliamna last two years to sports fishing. The sports fishing bag limit was 2 fish a day. Tourism level was low and had an impact on our community this year. Local small businesses such as air taxis and convenient stores didn't do very well this year. Basically, our entire community revolves around fish.

Tom Tilden-With Governor's declaration, we should diversify our economy and the fish committee, financial and economic subcommittees should look at these areas.

Barb Belknap-was in Sand Point recently for an economic, fish, and marketing meeting. Topic was "How Can we Diversify Our Economy, and How Can We Better Our fish Economy."

Daryl Lowe-USRDA-Rural Development; phone: (907)-842-3921; web site: www.rurdev.usda.gov. -USDA is in limbo due to end of fiscal year. New fiscal year starts October 1st and there will be funds for new projects. We have funds for community facility projects such as fire stations, community centers and others that provide construction jobs locally. $50 million funds Nationwide. Alaska gets $20 plus million funds.

Bristol Bay Enterprise Grant-nonprofit to benefit local business or entrepreneur. Lake & Peninsula Borough received grants to provide technical assistance to local businesses. There aren't any short term funds.

Ken Reinfeld- Public Law 102477 gives authority to integrate all appointment -related services and agencies can use 25% of budget for economic development purposes.
Glen Haight, DCED-Economic Development Division has a grant from EDA for diversification. Mitch Clause plans to give EDA ideas on where to put monies.

Karl Ohls, DOL-There is an economic development project potential coming into the region, but skilled local workforce is needed for any jobs that become available. There are training programs that identifies potential employment locations are and are willing to prepare local people for these jobs by providing job training.

Liz Williams, DOL-Toll Free Contact Telephone: 1-888-478-5872 or contact Sharon Wilson at 1-877-246-3925. Ms. Williams is the main contact person in region for job training. Rapid Response Job Training of Anchorage provides short term training for long term employment such as construction training for local project jobs. Other areas include health care, education as well as office skills training. Job training outreach occurs in September, October, and November.

Job and Economic Summit-BBNA along with DCED will conduct a Job and Economic Summit on November 15-17, 2001. Eventually, the Job and Economic Summit will be brought closer to the villages who are looking for work and economic opportunities.

Economic Development Committee: Agnes Rychnovsky, Newhalen; John Lind, Chignik Lake; Darrel Richardson, BBAHC, Dillingham; Fred Nishimura, Dillingham.

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Discussion/Comments:

Robert Heyano- It will be a challenge to create economic development alternatives without providing adverse impact on the fishery resource.

Robin Samuelsen-We need key players represented in this committee from Lake & Peninsula Borough, Bristol Bay Borough, BBEDC, and BBNA. Short and long term planning needs to take place. We need to work out an overall economic development plan of an economic redevelopment in Bristol Bay. What is the Governor's definition of this? What kinds of funds are there?

Agnes Rychnovsky agreed with Robin Samuelsen. She would be interested in being on this committee for planning purposes and affecting change within granting agencies in economic resource. In fishing what impact would it have on granting agencies. We need to see what needs to be done.

Tom Tilden- AFN's implementation study looked at some issues in health, subsistence, economic, employment and other issues. Got funded $18 million for health issues. Senator Stevens wants to fund on economic issues. AFN traveled to communities to get economic development planning ideas.

Tim Troll suggested using the OEDP as a working document.

Ken Reinfeld-suggested bring needs from committee of resources that are available.
BBEDC will be conducting regional strategic planning session with their grant writer and scientist. It was suggested BBNC bring in oil and gas perspective to the committee.

Where We Need To Go From Here-Bristol Bay Fisheries (General Discussion):
Terry Hoefferle invited group participants including Robin Samuelsen, Adelheid Herrmann and others for their input.

Participants suggested tribes, city governments, and boroughs participate in solving these issues. The tribes could work with BBNA to get a comprehensive package together for funding. Farm aid packages are tied to social security. BBNC Village Leadership Workshop should also discuss these issues.

Dorothy Wilson-Two years ago, BBEDC hired an engineer to conduct infrastructure condition and ownership in 17 BBEDC communities. This information was prioritized by BBEDC Board. Ms. Wilson asked organizations to compile similar information to avoid duplication of services already available in communities.

(DOL)-commented on how to get maximum benefit of public construction programs coming to the Bristol Bay region. Department of Labor is willing to work as a resource for workforce issues. A training subcommittee in economics would be helpful.

Darrel Richardson (BBAHC)-Coordinate area for purchases. For example, what does BBAHC buy from outside region for xerox and boiler repair technicians. Organizations should hire locals for office equipment repairs and other services that we request for outside the region.

Tom Tilden-Have different organizations know what our economic development plan is, what about the fishermen? In economy we want to diversify the resources individual fishermen have. They can utilize their fishing boats for freight hauling. In the economic development plan the committee can include the individual fishermen's economic resources they can utilize when they put the plan together.

USDA-Daryl Lowe-In the business enterprise grant, the priority is for non-profit organizations. These grant funds don't include private individual businesses, but USDA can guarantee loan, for example bank loans to obtain ice machines. USDA has funds for organizations planning to assist villages in developing overall strategic plans. Denali Commission requires some grantee to have completed an overall planning guide before they can obtain grant funding.

Moses Toyukak, Sr. (Manokotak)-suggested that the economic development plan be a long term plan rather than a short term plan.

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Economic Development Committee -The planning body needs to be inclusive. BBNA will get letter out to various entities on-line-BBEDC, BBNC, boroughs and tribes to suggest idea of economic planning and get their input of putting together this plan in a manner of not excluding anyone.

Robin Samuelsen suggested a simple handbook be compiled including definition of a disaster, and programs available for public resource information. Robin also recommended the fish and subcommittees give a presentation to Lt. Fran Ulmer during the September 20, 2001 Fish Committee Meeting at BBNA.

Jim Hurley (Ekwok)-In economic development, we have to have renewable resources. For example, fish resource is directed to market in providing jobs. The sports fishing is affecting commercial fishing.

Robert Heyano-Good process for committees is to get a well-rounded representation of individuals and agencies.

Meeting adjourned at 4:15 p.m.

July 26 Fish Committee Teleconference
BBNA Board Room - Dillingham, AK


I. Welcome and Introductions: The teleconference operator confirmed participants online announced Dorthea Jewell’s cancellation and noted that Donald Nielsen and Johnny Lind were both unavailable. Terry Hoefferle, Chief of Operations, BBNA, Dillingham called to order at 9:05 a.m.

Participants in Dillingham:
Terry Hoefferle – COO, BBNA William Johnson – Fisherman
Robert Heyano – Fisherman Tom Tilden – Fisherman
Robin Samuelsen – Fisherman/BBEDC Jim Browning – ADF&G
Norman VanVactor – Peter Pan Seafoods Inc.
BBNA Staff Present:
Andy Golia – Economic Development Program Manager
Jennifer Nicholson – Temp. Subsistence Coord./Recording Secretary
Pearl Strub – Workforce Development Director
Teleconference Participants:
Glenn Haight – DCED Johnny Christensen – Port Heiden
Hjalmar Olson – BBNC/Fisherman Barbara Belknap – ASMI
Leroy Wallona – Twin Hills, Fisherman Hazel Nelson - Lake & Peninsula
Bob King – Governor’s Office, Juneau Adelheid Hermann – Bering Sea Fishermen’s Assoc.

II. Election of Chair: Terry Hoefferle began the meeting with the first order of business, electing a Chair for the committee. Robin Samuelsen nominated Andy Golia as Chair of the 2001 Fish Committee. Robert Heyano seconded the motion and William Johnson called for unanimous consent. Andy Golia was elected Chair and the meeting proceeded with the agenda items, the first of which being item IV. Establishing an Agenda. Andy asked if there were any comments on the purpose and goals of the committee.

Robert Heyano stated that he though the purpose and goals were set out at the last meeting and that it would probably be unanimous consent that the current situation is totally unacceptable and the purpose of today is to try and find long-term solutions.

Glenn Haight said that his vision importantly, was to determine what types of changes the people of Bristol Bay might be interested and then to explore those options. And then see how those types of things fit into a statewide view of issues.

Jim Browning added that as Robert stated, the committee should be thinking about what was stated at the last teleconference. He added that there should be more explicit goals and paramenters would be helpful. He said we have to talk about things that are very different from the current situation.

Norman VanVactor added that it is time to “think outside of the box.” It is time to put everything on the table and discuss broad perimeters.

William Johnson stated that doing nothing is not acceptable, that a generic list of acceptable changes needed to be made. As an addition he said we should delve into a marketing association, something we do not have anymore. He said we should look at the over-escapement issue and suggest changes to it. He also suggested that we look at the state processing regulations and recommend regulations so that fishermen can market their own salmon.

Hazel Nelson explained that she thought our most obvious problem was overcapitalization. She thought we should tackle more difficult solutions that would lead to buyback etc.

Robert Heyano claimed that the committee should look for provided information to decide if buyback is something that we want to pursue. He thought the first thing that needing to be accomplished was finding a study to decide if the optimum number of permits with financing and economics would be a viable option. He said that it is time because of the competition of farmed salmon, to form a partnership between harvestors and processors (we cannot afford an adversary role) and that it would be the key to establish new markets and that a higher value would come as a result. He said that if we can also improve quality, then new markets will come about and the value will come up next. Lastly, he explained that there never enough research dollars – regardless to where you fish, from Togiak to Ugashik, we all feel the impact of Kvichak, and to date, no one has an answer as to why it’s failing.

Barbara Belknap, Executive Director of the Alaska Seafood Marketing Institute, reporting on a recent trip to Japan, explained how important and appropriate Robert’s comments were. She said there is a market for sockeye. Japan was wondering what was going on in Bristol Bay and wanted increased communication between market and fishermen/processors. She stated that it would be a good thing to have a processor on the committee.

Norman VanVactor, Bristol Bay Manager of Peter Pan Seafoods, said he is willing to participate and do anything he could. He encouraged broader participation and offered to recruit other processors in order to have additional sets of opinions at the table.

Terry Hoefferle agreed that processor involvement was very appropriate and that the more people brought to the table, the more we will have a wide range of things considered from science to marketing. As we move more forward, we will be able to form committees and involve more people as subcommittee members.

Norman VanVactor reminded the committee of Moses Kritz’s comment at the last teleconference and said that he thought the time was right for a healing and putting a delegation together in conjunction with ASMI and some of the major marketing processors.

Barbara Belknap reminded the committee that Japan is a huge and loyal market. She also stated that as she attended meetings in Japan last week, there were major buyers present who had not been there for the past three years. Previously they had been upset with Alaska and they are now showing interest again. She said she had a video from them that she could give to Andy for buyers and what they wanted to see. Barbara stated that she would be willing to work on a marketing subcommittee and stressed that it was important to work with Bristol Bay marketing.

Adelhied Hermann, from Bering Sea Fisherman’s Association, commented on Bristol Bay and ASMI represented and stressed the need of communication as to what ASMI is doing so that fishermen are more aware of what is going on.

Robin Samuelsen who said he is also trying to adjust to the shock of the season, explained how he has spent much time lately on the Internet and found cites on Chilian and Atlantic salmon. The concern of increased farmed fish production is not just a problem to Bristol Bay, but is a problem to Canada and to every other fishery in the U.S. He stated that we are looking at a very long-term problem and that we now need to reinvent ourselves. He agreed with Robert that the processors along with the fishermen are a big component and that we need to develop a friendlier working-relationship, fully understanding our bounds. He said we have allowed fish farmers to basically take the fish market by storm. He went on to explain that ASMI has done all in their limited budget to work with Japan but like when we go to the grocery store in search of the ‘best buy’ they do likewise. He said we need to look down the road for and to future fishermen and then stated the question of ‘How do we make Bristol Bay a viable industry?’ He thought we needed to research the Kvichak river system and how when it is sick, the entire Bristol Bay system is sick. He said we have to develop an overall framework with the realization that farm fish is here to stay and that they are our competitor. He added that he was concerned with the possibility that the sports industry may have surpassed the commercial fishing industry this year. Nevertheless, he pointed out the need for short and long term plans.

Glenn Haight from DCED responded to Robin’s comments and said that he was right on with his observations. He said that as he understood it, Bristol Bay now has 30% of the world’s production of salmon and that we are looking at less and less market share each year. He said we need to consider Alaska salmon and develop a business plan and start operating accordingly. A well thought-out business plan will help to reduce costs over diminishing price.

(Virginia Aleck of Chignik Lake then joined via teleconference)

Jim Browning suggested that we invite Bruce Twomley of the Alaska Commercial Fisheries Entry Commission to participate in our meetings because he understands the legal process involved with the buyback program.

Terry Hoefferle said he attended a Fish Expo in Seattle a couple of years ago addressing the overcapitalization of the fishery, and the concern about the increased loss of permits of a buyback program is established. He said the region has lost about 40% of its resident permits over the years, and there’s a need to get young people into the fishery, otherwise they’ll end up on the beach watching the fishery.

Robert Heyano said he felt that young people will get into the fishery once the fishery becomes viable again, and right now he’s having problems finding local residents to work as crew members on his boat.

Tom Tilden said he’s concerned about fishermen getting a fair price for their fish, and that Chignik and Kodiak fishermen got $.65 per pound for their sockeye salmon, while Bristol Bay fishermen only got 30% of that. He said he’ll like the fishery establish a free trade zone, and copies of the disaster resolutions being passed by area communities should be mailed to Japan.

Glenn Haight said the committee should take on each issue, brainstorm, perhaps assign someone or a committee to work on specific issues, the