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March
22 , 2002 Economic Development Committee Teleconference Those present included: Glenn Haight,
Fisheries Development Specialist, AK DCED 1. Terry Hoefferle called the meeting to order at 1:45 p.m. because some of the Committee members had problems accessing the teleconference. He asked those on line to introduce themselves and introduced those present in Dillingham. 2. Approval of agenda: Under old business, Hoefferle said he'd like to add a recap of the March 1 televised Jobs Summit to the agenda. He also asked that Fritz Johnson to give an update on work of the BBNA's Fish Committee; Johnny Lind give an update the new Chignik fishing co-op; and Lynda Billmyer give an update on SWAMC's Winter Meeting in Anchorage. Under new business, Adelhied Herrmann asked if she could talk about her letter to Governor Knowles, and Glenn Haight said he could speak briefly about the Salmon Summit set for April 4, 2002 in Kodiak. The agenda was approved as amended. 3. Approval of minutes: Hearing no objections, the Dec. 20, 2001 meeting minutes were accepted as written. The minutes for the Economic Development Committee meetings are posted on BBNA's website at www.bbna.com. 4. Old Business: A. Jobs Summit: Hoefferle recapped the Jobs Summit aired March 1 by KTOO-TV in Juneau, which described the $270 million in projects scheduled for Southwest Alaska over next 3 years, the projects' job potential and ways to network workers with training and jobs. He complimented DCED for organizing the event, and participants from the State Department of Transportation, Division of Energy, the Bristol Bay Housing Authority and others who described their various projects expected in each sub-region in Bristol Bay, and what skills workers will needed to work on the projects. Videotapes of the program are available. Fritz Johnson agreed that some of the PowerPoint presentations might be posted at BBNA's website. Adelhied Herrmann asked if information on training opportunities was provided. Affirmative, Hoefferle said, from the Alaska Vocational Technical Center, the State Department of Labor, and BBNA's Workforce Development Office. B. BBNA's Fish Committee: Fritz Johnson, Chair of BBNA's Fish Committee, reported on the status of the BBNA's Fish Committee, saying the committee has been relatively inactive since BBNA's Executive Committee's decision that the Fish Committee lacks regional input and should stay out of fishery issues. Johnson said he felt that BBEDC's recently announced restructuring study would continue on the work of the committee with broad public input. Hoefferle elaborated, saying BBEDC has named a Study Group to examine possibilities for restructuring Bristol Bay's salmon fishery, from cutting harvesting costs, to overcapitalization, cost of production, lowering harvesting costs, improving quality, advertising various products, and transportation barriers. The study is scheduled for completion by Jan. 2003. Hoefferle went on to say that BBNA's Board had recently instructed BBNA staff to remain involved in advocating on behalf of our membership within the fishing industry; and that a board committee will define areas in which BBNA will continue fisheries work. C. Chignik Salmon Cooperative Report: Johnny Lind of Chignik Lake said that to date the Chignik co-op had 61 members signed up, who will have a first meeting April 4, 2002. He said a buyer has hinted at paying $1 a pound for co-op fish; 50 cents on delivery, 25 cents in December, and 25 cents in March. He said too that Chignik Pride will not operate in Chignik this summer and the plant is up for sale, and that Norquest Seafoods plans to offer the going Kodiak grounds price for salmon this summer. D. SWAMC's Winter Meeting: Lynda Billmyer said that SWAMC's Winter meeting Jan. 31-Feb. 2, 2002 focused on putting together a consortium for greater intra-regional cooperation, and revitalizing SWAMC's committee process. She said participants supported funding for the Southwest Alaska Municipal Conference, the King Salmon tower, Alaska's Marine Highway Ferry System, airport improvements at St. Paul; involvement in crab rationalization; and the development of the BeringSea.com website. 5. New Business: A. Economic Summit: Hoefferle said BBHA's Dave McClure suggested that the Regional Economic Summit under discussion for this spring be presented via webcast, and made available over the Internet to village participants in schools and homes. A webcast would allow various workshops to be held simultaneously, with, for instance, Ethel Adcox talking about how to start a bed and breakfast from her home in Iliamna, and another workshop on how to set up anemometers to gauge the potential for wind power. Reading from a memo prepared by Fritz Johnson, Hoefferle said hardware and software for a very modest level of videoconferencing could be purchased for about $5,000. There was some general discussion of time constraints and unforeseen connectivity problems. Fred Nishimura said he felt there a need to run a pilot program with 24 communities to make sure the system runs right. B. Salmon Summit: Because Glenn Haight had to leave for another meeting, he gave a brief report on the April 4 Salmon Summit in Kodiak. Haight said that Senator Ted Stevens and Governor Tony Knowles are planning a facilitated discussion of the salmon industry similar to the Subsistence Summit held last fall in Anchorage. Gunnar Knapp and others will facilitate discussions on rationalization, quality, and community assistance. He said he hoped the Salmon Summit would cover broad areas - with clear "marching orders" as the result. Bob King and the Governor's staff are drafting the agenda. Discussion returned to Economic Summit web cast: Terry Hoefferle said that BBAHC plans to have a system that could facilitate videoconferencing on line by April 15. Andy Golia said any videoconferencing system should be tested first with larger villages like Togiak and New Stuyahok, one or two health clinics, and perhaps private homes just to make sure it works. Lynda Billmyer suggested multi-model conference using TV, Internet, instant messaging, etc. "If you're going to do it, do it right," she said. C. Letter to Governor Tony Knowles: Adelhied Herrmann said a virtual communications component should be part of the region's economic development plan. She said she had written to Governor Knowles requesting assist from Rapid Response to develop community economic development plans in the region. Hoefferle said he has talked to Janet Thompson, who has some good ideas on how to engage local community planners, and suggested that Andy Golia contact her. Hoefferle went on to say that BBNA has prepared a draft economic recovery plan, based on consensus of plans from various organizations, including BBNA's Board. He thanked SWAMC and others that have provided information. He said that BBNA would forward a copy of the draft plan to Committee members. In closing, Fritz Johnson said that he wanted to emphasize that the $5,000 figure for webcasting equipment was the bare minimum; for more money, consultants could be hired to put such a program together. 6. Time and Place of Next Meeting: No discussion on this. The time and place will be the call of the chair. 7. Adjournment:
The meeting adjourned at about 3:15 p.m. Dec.
20, 2001 Economic Development Committee Teleconference 1. Call to Order, Welcome, and Introductions: Terry Hoefferle, Chair of BBNA's Economic Development Committee (EDC), called the meeting to order at 8:36 a.m., introduced those present in Dillingham, and asked those on via teleconference to introduce themselves. Present in Dillingham were Terry Hoefferle, Dave McClure, Fred Nishimura, Fritz Johnson, Andy Golia, and Hjalmar Olson. Those present on line included Arne Erickson, Johnny Lind, Erie Johnson, Paul Ansell, Mark Earnest, Adelhied Herrmann, Sharon Wilson, and Janet Thompson. Hoefferle thanked everyone for joining, noting that the committee hasn't met since before the tragic plane accident in Dillingham Oct. 10. 2. Approval of Agenda: Adelhied Herrmann moved to approve the agenda as presented. Seconded by Fred Nishimura. Herrmann then asked that "Action Plans" be added to the agenda under new business. Amended agenda approved unanimously. 3. Approval of Minutes: Nishimura moved to approve the Sept. 26, 2001 minutes. Seconded by Dave McClure. Motion carried. 4. Old Business - Review of Rough Draft Recommendations: Hoefferle said he felt the best way to handle this part of the agenda was to read through the rough draft recommendations and ask for comments. In regard to item number 3 of the "generally agrees" section, Hoefferle said he had not written to the Denali Commission specifying that the Commission is not being responsive enough to the region's fishing disaster, although he and Jeff Currier had met with the Commission's Jeff Staser. Erie Johnson said he also met with Jeff Staser and discussed problems in light of the Southwest Alaska Vocational Technical Center, asking how the Commission might help with training funds; he received no commitment from the Denali Commission. Hoefferle asked if a letter to the Commission might better be delivered in person. Nishimura suggested inviting the Denali Commission to the next meeting of the EDC. Dave McClure agreed. And citing the Commission's recent Annual Report, he noted two barriers to overcome. One relates to the Planning Process and the other to Sustainability. He said a full-time economic development planner is needed to work with area villages on developing plans. Paul Ansell said he understands the Denali Commission's training funds are a separate fund than grant money. Janet Thompson suggested that training funds, combined with Pam Middaugh's Fast Track Program, might be used to help communities with the planning process. Adelhied Herrmann asked if there was money to hire a planner for a region-wide action plan. Janet said she felt the program was more community-oriented but promised to look at the language. She said under the Workforce Investment Act, they can assist villages develop a coordinated response partnership. Paul Ansell said that DCED was opening an office in Dillingham, and has hired Tim Troll who may be able to assist with this type of work. Hoefferle said Troll's job would include planning for a regional Jobs Summit and Economic Summit, as result of the Governor's disaster declaration. Under Restructuring Bristol Bay's Commercial Salmon Fishery - Summarizing the Fishery Committee's work, Fritz Johnson said the Committee is not developing hurried plans for the next fishing season and is working on non-divisive issues. Salmon quality is an important issue, and cited Commercial Fisheries Entry Commission optimum numbers study for Bristol Bay's drift fleet. The study will take into account historic participation figures for the fishery, efficiency of the fleet, projected harvests and salmon prices. Hoefferle added that the study would consider the biology, management and economics of the fishery, and cited a clause in the state constitution that prohibits fisheries from becoming "too exclusive." Fishery Committee meeting minutes of the Fish Committee meetings are posted at www.bbna.com. A. Herrmann said she felt there ought to be a number "2" in this section pertaining to the State fishery business tax to allow distressed communities to receive a larger share of raw fish taxes. She said she would explore the idea and work on proposed legislative language. Mark Earnest offered to help. Johnny Lind gave an update on Chignik's efforts to form a salmon fishers cooperative and secure an allocation from the Alaska Board of Fisheries. He said there are some 52 interested parties. Questions have arisen concerning the loss of crewmember jobs, high-liners wanting shares based on "historical averages" rather than equal shares; the contentious issues are still being ironed out. Hoefferle said that BBNA's Ralph Anderson and Hans Nicholson will attend the fish board meeting to assist Chignik's efforts. Under Item B. 2. - Addressing the region's high-energy costs: Hoefferle said BBNA's Executive Committee passed a resolution requesting Alaska's Congressional Delegation to provide economic incentives to explore for natural gas in the region, and that AFN had taken similar action. Under B. 3. - Wind generation: Hoefferle cited a recent National Indian News article describing a wind generator installed in South Dakota producing substantial benefit; there the tribe is seeking financing to install more wind generators. He added that perhaps the language needed to be strengthened to make it an action plan item, and asked if the Lake & Pen Borough had any wind power studies underway. Golia said the borough may have assisted with Pilot Point's efforts to obtain wind generators. He said two wind generators in that community now provide electricity for four families. Dave McClure said the Alaska Energy Authority recently put out an RFP for a demonstration project on re-lamping with fluorescent lights. Hoefferle said Levelock is saving energy costs by installing modern energy efficient appliances and lights; savings may be as high as 20 to 40 percent. Golia said he recently replaced bulbs in his home with fluorescents and he anticipates savings. The irony, Hjalmer Olson said, is that while residents are cutting down on electric use, partly because of the poor fishing seasons, the local utility is raising rates because it's not selling enough electricity. Hoefferle said that perhaps there's a need to convene the local power producers to discuss that situation. Fred Nishimura agreed, adding that it's time for another meeting of the Bristol Bay Alternative Energy Task Force. Mark Earnest said that SWAMC is conducting a survey of value-added salmon products in the region; response from communities has not been good and he's looking for help. In regards to D., Addressing Economic Diversification, A. Herrmann suggested that references to "subsistence foods" be removed and replaced with "value added products." Hoefferle suggested a new #3 under this section pertaining to mineral development. Herrmann agreed, urging greater public awareness of what's being identified in the region. McClure suggested that oil and gas development also be included. Hjalmar Olson said BBNC has had several discussions with mineral development companies. He said mineral development here is expensive; Pebble Copper and Shotgun Hills won't be developed until copper and gold prices increase. Exploratory wells are also very expensive, that oil companies have shown no recent interest here, and that BBNC can't explore for hydrocarbons on its own. Paul Ansell asked about possible shellfish farming. Hoefferle said there's potential to market pumice rocks, and other small cottage type industries. Re: rock quarry development, Hjalmar Olson said a quarry in the Chignik area may be too expensive to develop, especially when Sand Point currently has an existing quarry. He said that BBNC and Choggiung Limited spent $250,000 to $300,000 to develop the Snake Lake Road quarry, but it did so because of an immediate market for rock for Dillingham's beach erosion project. Generally, Olson said although diversification is long-term goal, fish will remain important. But given the state of the economy, he questioned the ability to maintain "some big beasts" like the municipalities, citing Dillingham's $1 million police budget. "If we can't make a living fishing, how can we pay the taxes to support that?" and what if Dillingham become a second class city? McClure suggested the consolidation of school districts - and perhaps non-profits as well. Arne Erickson said that the Bristol Bay Borough has been making major cuts, and residents much decide what they are willing to give up. Taxes are up, service demands are up, the borough is looking at a $3 million deficit, and fishing revenues are inadequate. Hoefferle cited the tax issues that the Bristol Bay Borough and City of Dillingham had last fall. McClure said drops in revenue sharing also affect unincorporated villages. Hoefferle said it's getting harder for governments to provide services. Mark Earnest said that communities have to identify their existing costs to provide necessary services, then figure out how to address them. A. Herrmann suggested a number 4, to look at ways to get higher paying jobs into the hands of local people. Hoefferle said he hoped to address this under Training and Education Needs. In regards to item E. 3., Hoefferle said he sees a red flag in taxation. McClure said he'd like to remain, to capture revenue from non-residents. Herrmann questioned the establishment of special harvest areas. Fritz Johnson said the idea would be to enable fishermen to catch tourists, using a limited amount of salmon gear within sight of town, taking clients out to catch a few salmon, pack them, and take them home. Arne Erickson supported the idea, suggesting perhaps a one-day license for tourists. M. Ernest questioned the "taxation" phrasing and intent of number 4. Nishimura said most tourist operations in the region are consumptive, and we should be encouraging locals to buy them out. He also said lodges are expensive, and conversion will not be easy. Hoefferle said the most pressure in the region is on moose, caribou and fish; a better course would be to develop cultural and ecotourism. . Ernest said that SWAMC's web site has space available for free community promotion. Hoefferle said as an action item funds be sought for Togiak, Iliamna, Dillingham, and King Salmon to be developed as "hub and spoke" communities, and as number 5, the need for cultural facilities. Hjalmar Olson suggested promoting winter tourism activities, noting that hotel and airline rates are cheaper then. In section F, under Addressing the region's education and training needs, Hoefferle suggested adding a number 4: promoting local hire. Herrmann suggested a number 5: encouraging local school districts to incorporate fisheries education in school curriculums like the Bristol Bay Borough School District. Erie Johnson expressed frustration over training people, however he's not convinced all companies are serious about local hire. Hoefferle said he felt the Vocational Technical Board needs to seriously consider this issue. McClure cited housing experiences - he said villages want local hire and it becomes a political issue. H. Olson said that fishing still robs workers seasonally, as CCI has experienced. He said Nondalton residents are doing a good job staying for work rather than fishing, and both Egegik and Iguigig set good examples for local hire on local projects. McClure said he's had similar experiences with BBHA workers, and there should be ways to easily compare carpenter wages verses fishermen's incomes with low salmon prices. Janet Thompson said entrepreneurial training is needed. Golia cited Lois Sorensen's village tourism development workshops teaching how to start bed and breakfast businesses. Nishimura said that many young village people are intimidated by idea of relocating to Anchorage, and there has to be some way to help make the transition easier. Hoefferle suggested partnering with Cook Inlet Tribal Council on that issue. Janet Thompson said she discussed the issue with CITC, and follow up is needed. Paul Ansell said he's done the same, and CITC has a "jobs club." Dave McClure said he'd do the same with the Cook Inlet Housing Authority. Herrmann asked if there was any STEP money to help. Hoefferle asked if Erie Johnson was planning to prepare a STEP grant application? Erie said he knew the grant was available, and he hasn't applied, total funding is $300,000. Janet Thompson said information on STEP grants is on the state's web page. She added that Peer Outreach proposals and projects are pending for fishery impacted areas. New Business - 5. A. - Compiling Economic Development Efforts in the Bristol Bay region: Andy Golia said he compiled the list of current economic development efforts underway by various organizations to share existing plan. He said this information would be provided to BBNA's Economic Recovery Planner, if and when the position is funded. Hoefferle suggested the list be emailed to BBNA's Economic Development Committee for review. New Business - 5 B. - Update on Bristol Bay Jobs & Economic Summits: Hoefferle said the Jobs fair will be held in Feb. 2002 and the Economic Summit in March 2002. He said GCI will provide bandwidth to 25 communities and UAA technical assistance for an electronic town meeting, both at no cost. A content person is still needed. He said he anticipates help from Tim Troll at DCED and DOL assistance for a video loop for the jobs fair to be televised on the Legislative Information channel. Dave McClure said that in Feb. 2002, the Alaska Mental Health Trust Fund is planning to meet in Bristol Bay and urged the EDC to meet with that group to discuss the impacts of the poor fishing seasons. A question arose about who will provide village technical assistance for the electronic carnival. Hoefferle said he's talking to school officials, hoping to get student participation, and that he expects the schools will play a key part. He said the germ of the Economic Summit should be to provide information on how to get a job, start small businesses, wind energy generation, value-added salmon processing, etc. He said moving from talk to action is the missing link, but at present no one seems to have any money to hire coordinators for the summits. McClure suggested this type of information should be provided on the Internet. Janet Thompson said that Rapid Response money could help compile economic development plans. New Business - 5.C. - Action plans: Adelhied Herrmann asked if it wasn't time to develop a local coordinated response. Janet Thompson urged discussion on what a local Coordinated Response Partnership will be, including the local contribution. Hoefferle agreed that the various regional economic development plans need to be coordinated. Then, saying he had to leave for another meeting, and asked if Golia could take over as Chair, which hearing no objections he did. Time and Place of Next Meeting: It was agreed that scheduling the next meeting be left to the call of the chair. Golia said it would likely be in mid-February when the Mental Health Trust Board meets in Dillingham. Mark Earnest announced that SWAMC will have its winter meeting Jan. 31-Feb. 2, 2002 at the Marriott Hotel in Anchorage, and next fall SWAMC will meet in the Bristol Bay area. The meeting adjourned at 11:10 a.m. Respectfully
submitted Dec. 27, 2001, Dec. 20, 2001 Recommendations of the Economic Development Committee: The committee generally agrees that: 1. Achieving an economic recovery plan for the Bristol Bay region cannot be accomplished by any one organization. Existing economic development planning, data and proposals developed by local, state and federal agencies need to be shared in order to maximize benefits to the region. A mechanism should be created whereby entities such as the Southwest Alaska Municipal Conference, Bristol Bay Economic Development Corporation, the Lake and Peninsula Borough, Southwest Alaska Vocational Technical Center, the Bureau of Indian Affairs, Denali Commission, Alaska Department of Transportation, the State RAPIDS database and the Bristol Bay Native Association, its Workforce and Employment Programs, can share development efforts and identify commonalties and areas where collective efforts can be undertaken. 2. The Denali
Commission is not being responsive enough to communities affected by fishing A. Restructuring Bristol Bay's Commercial Salmon Fishery: 1. There's a need to examine overcapitalization; promote Bristol Bay wild salmon sales, expand value-added salmon processing, continue efforts to improve the quality of Bristol Bay salmon; and lower transportation costs, such as constructing airports capable of accommodating larger aircraft to carry local salmon to markets. 2. In depressed fisheries, communities that generate revenue through the Alaska's fisheries business tax should receive a greater share of the revenues generated. 3. If a majority of Chignik salmon fishermen are in favor or forming a cooperative, their efforts to secure an allocation from the Alaska Board of Fisheries should be supported. B. Addressing the region's high energy costs: 1. High transportation and energy costs are the two most depressive elements in the region's economic development efforts. Lowering these costs would stimulate economic development and reduce the region's high cost of living. 2. There's a need to secure federal funds to examine the natural gas potential in the region. 3. Wind data for Bristol Bay communities ought to be compiled and examined in light of recent advances in wind generation technology. 4. Local electric cooperatives in the Bristol Bay region should work together to identify ways to lower electric power costs. C. Addressing the region's high transportation costs: 1. Rep. Don Young's assistance is needed to secure federal funds to complete a feasibility study for surface transportation improvements (including roads and railroads) between Bristol Bay and Anchorage. 2. Airports of at least 6000' in the major fishing hubs of the region are needed to allow fish to be flown out to markets. 3. State DOT airport maintenance contracts are insufficient and should be increased.. D. Addressing economic diversification: 1. The potential
for wild berry, wild meats, and promoting arts and crafts businesses via
an Internet 2. Other remote work scenarios, such as government contracts that can be fulfilled and administered from home, should be pursued. 3. BBNC's Land Department should summarize and make available to the region's family of BB's information on potential mineral development sites in the Bristol Bay region. 4. Efforts should continue to get more local people to take over the higher paying jobs available in the region, instead of importing workers from outside. E. Addressing tourism development: 1. Ecotourism and Native cultural tourism activities should be promoted over consumptive tourism in the region, and we must convince our children and ourselves that tourists are good for us. 2. Cultural facilities and museums need to be funded and constructed to attract tourists to the region's hub communities and surrounding villages. 3. Tourism can provide income to local Native dance groups, and increase arts and craft sales. 4. Over the long-term, the transfer of ownership of tourism businesses in the region to local ownership should be encouraged. 5. Commercial fishing special-harvest areas should be established to enable tourists to watch area residents harvest salmon with limited gear. 6. The region's winter tourism potential should be developed. F. Addressing the region's education and training needs: 1. Efforts to train local villagers for local construction projects and getting local people hired for local positions must continue. 2. An efficient telecommunications system in every village is overdue. 3. The State of Alaska and federal government should fund rural vocational technical centers for post-secondary education with an aggressiveness similar to the school construction mandates that followed the Molly Hooch lawsuit. 4. Schools in the region should universally adopt the fisheries education program developed and offered by the Bristol Bay Borough School District. G. Bristol Bay Jobs & Economic Summit: 1. The Jobs and Economic Summits must be delivered electronically to area villages. 2. The Jobs Summit should feature booths for jobs on Bering Sea on-shore and off-shore employment opportunities. 3. The Economic Summit should focus on an overall economic recovery plan for the region. 4. The Economic Summit should offer information on how area villagers can get a job on factory trawlers; Alyeska and the North Slope; startup a small business (repair shop, tourism operation, bed and breakfast, etc.); develop village tour packages; prepare business plans; obtain their U. S. Coast Guard 6-pak licenses; get into value-added salmon processing; etc. 5. A full-time Economic Summit Planner and Assistant Planner are needed. Economic
Development Committee Teleconference Draft Minutes
The meeting began at 1:32 p.m. with Terry Hoefferle welcoming everyone to the meeting. He introduced those present in Dillingham, then asked those on line to introduce themselves. Andy Golia, chair pro tem, said the first order was to elect a chairman. Dave McClure nominated Golia, seconded by Robert Clark. Andy declined for personal and health reasons. Robert Clark nominated Terry Hoefferle, 2nd by Dave McClure. Andy asked if there were any additional nominations. Hoefferle nominated Tom Hawkins, who said he doubted it would be practical for him to chair the meetings from Anchorage. Fred Nishimura moved to close nominations, 2nd by Hjalmar Olson. Hearing no objections, Hoefferle was elected chair. Hoefferle: First item of new business was discussion of purpose of this committee. What should we set out for ourselves to do? He cited discussions with Sen. Ted Stevens in recent months in which Stevens indicated his ability is running out to garner yet another aid package for Alaska communities hit by fishing troubles, and that it's time for communities to come together to find a solution to chronic troubles. Hoefferle said once that is done, the Senator indicated he would do what he can to help. The bottom line is there may be limited resources to engage in economic restructuring - etc. - and the best way to get the greatest good for the greatest number is to work together. Robert Clark said defense budget considerations are putting additional constraints on federal funding for agencies, and political sympathy for southwest Alaska's troubles pales in comparison to recent events in New York and Washington. He hoped the region could take advantage of existing aid programs. Golia: In
re: email from Lake and Peninsula Borough Manager Walt Wrede, in which
Wrede indicated the borough had no intention of subordinating its own
economic development plan, Golia said he "wanted to let folks know
that this email is good…we shouldn't try to infringe on each other"
and emphasized that -the purpose of this committee is to look broadly
at economic development needs in the region, and focus on those areas
that affect us all, such as high transportation and energy costs, for
example. Hoefferle asked if SWAMC could share its blueprint "to provide fodder for ideas?" Earnest said yes he could, adding that he's heard the same message Hoefferle cited earlier, that help from Congress "is going to be less on responding to the disaster and more on how to promote economic development." He said SWAMC has some experience in this process and would like to work with all of you. [Adelhied Herrmann joins by teleconference]. Hoefferle: "Are there other visions?" Robin Samuelsen: "In Bristol Bay fishing drives everything, and with "back to back disasters" we've seen "the demise of fishermen, local economies, borough governments." He predicted the situation would get worse before it gets better. Farmed salmon is the cause, and we're looking at a problem that's not going to go away. He said BBEDC has done infrastructure surveys of its communities and is willing to work with any interested parties, but it's important to remember subsistence is a priority and any changes will undoubtedly impact subsistence. He cited a diminishing window of opportunity in re: Congressional assistance, and that we ought to use that window to build infrastructure, esp. airports and energy costs, to encourage investment in the region. He said he looks forward to working with everybody here. Adelhied Herrmann said she'd like to see an action plan attached to any recommendations developed. Hoefferle said it was an excellent idea, and he stressed this meeting is just a starting point at trying to draw together SWAMC plans, BBEDC, BBNA's, Lake and Pen Borough's plans, and others "trying to put together as many ideas as we can and find ways that we might be mutually supportive." Dave McClure suggested that the group might want to consider some common conduit for whatever funding might be realized, perhaps the Denali Commission. T. Richards said Julie Kitka indicated at a recent Denali Commission meeting that the commission was not being responsive enough to communities effected by fishing disasters, and that it ought to set money aside for that. Some follow up communication might be useful to that end. Hoefferle: There area a number of groups who have development plans already: What other plans exist that ought to be shared? Erie Johnson: The Southwest Alaska Vocational Technical Center (SAVEC) ought to be brought in. Hoefferle: Workforce development and employment ought to be major components of any economic development plans. Herrmann: SAVEC curriculum ought to be built around those plans as well. McClure said the state's RAPIDS database for public funding should be part of the plans. Hoefferle: Are there other plans we should be aware of, those of the state DOT, Denali commission, others, that ought to be brought together? T. Richards: At Denali Commission meeting this morning with EDA, HUD and various agencies, there was intent expressed to make available all plans on line and in hard copy in the interest of "one stop shopping." Hoefferle: How soon? Richards: An agreement by December and 6 months to get it up and running. Earnest: Said he hoped SWAMC wasn't perceived as an outside organization; its purpose is to promote development in the region. SWAMC has earned $.5 million from $30 million put in an investment account. How can we partner in putting together a collaborative effort? He said SWAMC is working to become more of a regional development organization, and wants to put together a regional development plan. Hoefferle: Was that an offer of staff assistance? Earnest: We're a limited staff but we have some resources. Looking to add a staff person to focus on this as their primary responsibility. I'll send what we've got - maybe we can find a way to merge our efforts. Hoefferle: I still thought I heard an offer of staff in that. Moving on - any more on collaboration, or our purpose? Tom Hawkins said DOT and BIA transportation improvement plans ought to be incorporated, and Bristol Environmental Services could provide summaries of those plans. Hjalmer Olson: Said while fishing is the big economic engine, it's limited by its seasonality. Asked what kind of development is there that's year round? How do we attract processors to add value to fish? Said he'd heard Dillingham's new dock project is being stalled by ADF&G fears it could change fish migration patterns. Hoefferle: Our economy is unique and we all share high-energy costs and transportation costs. The challenge is to find things that compliment what we have. Its easier to re-align what we have rather than start over. There are some things we could be working on to help the transition -- using local labor on state projects helps but its surely not enough. Adding value to our product might be a way to extend the year. Golia: Said he expects the next two years fishing to be bad. People are looking for ways to survive. BBEDC's trying with value added. But we're in big trouble. We've got to promote BB wild salmon. I think everybody's wondering what's the future of our economy. There is a need to restructure. Olson: BBHA frames up houses in the summer and finishes them in winter. BBEDC provides 100 to 200 jobs on the Bering Sea. Bristol Environmental offers jobs. McClure: SAVEC Phase II was a house panel plant in Naknek -- a winter thing. Hoefferle: Before we go on to restructuring the fishery…are there other areas? Anything to add? McClure: Add an item 7: "other". Hoefferle: Re: restructuring: there is a committee that's talking a look at the commercial fishery now: cost of production, overcapitalization, marketing, diversification - we need to incorporate that work into whatever we do here. Samuelsen: Cited BBEDC's involvement with Capilano Pacific Seafoods, and this year's $200,000 European promotion. Biggest problem, especially from Togiak, was transportation costs. We talked with a European company who did 1500 tons of farmed salmon portion packs. We need lower and transportation costs - the state built airports need to be capable of DC6 traffic. Our barge service is cumbersome; the best transport is Japanese transport - and there are restrictions on what U.S. processors can carry. Customers are willing to pay more for wild fish. If we bring in a big company that has capital that can partner with our communities I think we can do it. All these points need to be addressed. Suggested a Baader (fish filleting machine) tech program for SAVEC. "When Detroit went dead, those folks had to retool and learn how to do more with less. If we don't turn this thing around it's nobody's fault but our own." It's too big for BBEDC; it's too big for any one organization. An infusion of new capital is needed. We can't survive on 40 cents. Brenda Akelkok: Since we're talking about improving efficiencies - why not seiners? R. Samuelsen: Past experience says Bristol Bay won't support it. Fritz Johnson: Lets not discount the idea entirely. R. Samuelsen: Said CFEC has information that with permit prices so low, speculators are buying. Ultimately to buy or sell is an individual fisherman's business decision - when it comes to the hard business decisions it's up for each of them to decide. H. Olson: Robin mentioned high transportation costs; other restrictions on shipping makes many products artificially more expensive. McClure:
the King Salmon tribal council requested Rep. Don Young to do a study
of surface transportation in Bay; perhaps a railroad. Hoefferle: 6000 feet is enough to fly fish out. In talks with DOT, officials said winter maintenance costs are what keeps airports short. You could leave part of it unplowed in the winter. We've been talking about these same things for years. We need an action plan, as Adelhied said to translate 8-9 years worth of talk into action. Dorothy Larson: We've got resources available we can use. Suggested potential for wild berry, wild meats, arts and crafts businesses via an Internet marketing system. A change in regulations might allow value-added subsistence foods to be sold. Hoefferle: Internet marketing for village crafts and other e-business comes to mind. I understand there are subcontracts available from DOD and elsewhere that folks can be doing at home. F. Johnson: Suggested commercial fishing special harvest area for tourists. A. Golia spoke about the alternative energy task force work: the high cost of energy precludes a lot: But might natural gas be available for local consumption? Hoefferle: Transport and energy costs are the two most depressive elements in economic development - bring those costs down could fix a lot of problems. McClure: And reduce the cost of living generally. Hoefferle:
cited advances in wind generation technology. D. Larson asked why in an oil-producing state, no oil was refined for local consumption. Hoefferle: Or to supplement Power Cost Equalization. Herrmann: Citing WAVE, asked if there might be value in cooperative purchasing. Hoefferle: Let's talk about tourism development? R. Clark praised the work of Chris Beck and the Bristol Bay Visitors Council, but said eco-tours ought to be encouraged over consumptive tourism. The region has attractions, he said, such as Katmai and Round Island, but we need to convince our children and ourselves that tourists are good for us. H. Olson: Said the region ought to promote what we have more aggressively, citing local dance group's lodge performances, arts and crafts - it's all part of econ development. Hoefferle: cited summer craft sales in Togiak that brought in upwards of $20,000. Olson: Tourists don't want to just fish all day, they want entertainment too. McClure suggested making a long-term goal to a encourage transfer of ownership, thru taxation perhaps, to local people. More general
tourism discussion followed. Nishimura: A real constraint is telecommunications; can't do any of this without an efficient system. The information age is here, we ought to take advantage of it. Herrmann: I'd like to talk more about fish - jobs not just in harvesting McClure: Re: voc-ed: we need to get the State of Alaska interested - on the scale of Molly Hooch -- for post-secondary. E. Johnson: Industry is on board here - a move toward thinking that working is alright - other state's support voc-ed as a separate board - some recognize this is be a good idea. "Classical academics" quite a bit different in how you train people for occupations. Hoefferle: Re: Economic Summit Nov 15-17 proposed by state. DCED and AK Dept of Labor are trying to determine the logistics of having the regional meeting. BBNA has asked them to refine the objective of the summit. McClure: What's new in it for village residents? Anything we haven't talked about for years? Is this something that's part of an overall economic recovery plan that's pending? Nishimura: Folks I've talked to share the same concern; it would be expensive for village residents to attend, and money is very tight. H. Olson: There'd be booths recruiting for jobs on Bering Sea or other employers? Golia: Karl Ohls said there might be money to bring village people in. Hoefferle: I don't know that there's enough money to do that. One idea - we might spend a day talking about what projects and jobs are coming up - to develop trainings and TERO plans - then we could hold other meetings in other places to share information. Herrmann: Cited the Bristol Bay Education Summit as a good example of getting villages involved in the process, building empowerment. T. Richards: I've been to a number of economic summits - some good, some not. They can be effective but unless folks have projects thought out - you can't do a grant application in an hour. Golia: Gov. Knowles suggested the summit. Economic summit to follow job summit. Not much time left. We need money to pull it off. I think people will be showing up. There's grave concern out here about the future of our region's economy. There's a tremendous amount of concern. Olson: Timing for job summit is right - trawlers will be recruiting for the January pollock season. Wouldn't people spend $200 to get here if they had a 50-50 chance of getting a job? Nishimura: What about during the 2001 Village Leadership Workshops in early December, and have that in Dillingham? Clark: Said he's encouraged BBAHC's board to hold its meetings in the region, but facilities are limited and board members don't always feel welcome - no encouragement from the Chamber of Commerce, for instance. His full board meeting costs $60,000, money that could stay in the region, "but that's the board's decision." He added that what he hears from the Denali Commission is that village plans ought to mesh with regional plans - and planning can't be overemphasized. "I don't mind looking at different ideas - but we need consensus - what's good for me may not be good for the family, the village. How to enhance the greater good needs to get enough people involved. If you want meaningful input - you could spend $50-$100,000 or more. And what is presented needs better graphics to explain the options. Hoefferle: If this is the issue that's going to be driving our plans for the next few years, maybe it's worth trying to raise money for it, to make it grass roots? Clark: We need to walk in the shoes of our people - we've got to try to do it here. It could be catered. Nishimura: It could be done but not by Nov. 15 M. Earnest said he had to sign off but he wanted to make a plea for thinking outside the box - otherwise we'll face a perpetual disaster in the economy. We shouldn't wait for an outside disaster declaration - let's take the blinders off and deal with it - put everything on the table. McClure: An electronic carnival? Hoefferle: The expense of bringing everyone together via airplanes will beggar us. Just our last teleconference cost $1700. Hermann: Cited past Peer Outreach program as very useful. Earnest: We need to be positive and proactive. Richards: cited video-conferencing efforts in Nome - if you have good access to technology it doesn't matter where you are. Hoefferle: To do a summit by Nov. 15 would take a full-time planner. McClure asked about leasing the state's TV channel, in concert with Starband Internet hookups. Paul Ansell: Karl Ohls may be able to help. He said he would inquire. Hoefferle: Let's keep talking about it and keep everyone posted. Olson: If not in November, maybe in the spring, when folks are considering their fishing options. Sharon Wilson: It should happen before jobs begin in case training is needed. Hoefferle: The chair will decide the time for the next meeting and I promise not to let the grass grow under my feet. Please send us your email address if we don't have it. F. Johnson: And don't forget the BayWeb bulletin board at www.bbna.com. Meeting adjourned approx. 4:35 p.m. Respectfully
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