2017-09-07 RM MinutesKodiak Fisheries Development Association
September 7, 2017
Minutes I SEP 18 2017
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I. Call to Order
President Bongen called the meeting to order at 9:05 am in the Kodiak Island Borough
Conference Room.
II. Roll Call/Approval of Agenda
The following directors were present: Jerry Bongen (President), Jeff Stephan (Vice -
President), Linda Freed (Secretary/Treasurer), Stosh Anderson, Tuck Bonney and Tyler
Schmeil.
It was moved by Anderson and seconded by Schmeil to approve the agenda. The motion
was approved by unanimous consent.
III. Approval of Previous Minutes
It was moved by Stephan and seconded by Bonney to approve the minutes of the September
14, 2016 meeting. The motion was approved by unanimous consent.
W. Old Business
• Current Membership (City Processor Seat Vacancy) - A possible candidate for this
seat is Paul Lumstem (Trident). Freed will get a City Board application to Anderson, so
he can get it to Lumstem.
• Update on ROFR Status and Discussion of GOA and/or other PQ Acquisition —The
Board reviewed an e-mail from McIntosh (Attorney) regarding the need to complete a
ROFR agreement with Deep Creek. KFDA is still interested in acquiring additional PQ,
if available from the Gulf Alaska, for which KFDA has ROFR's, or from other sources.
V. New Business
• Election of Officers:
A. President — Jerry Bongen
B. Vice -President — Jeff Stephan
C. Secretary/Treasurer — Linda Freed
It was moved by Schmeil and seconded by Anderson to nominate and confirm the
current officers to serve during the upcoming year. The motion was approved by
unanimous voice vote.
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KFDA Minutes
September 7, 2017
2017 — 2018 Review of Proposals and Approval of IPQ lease(s) -The Board reviewed
the proposals received to lease KFDA's IPQ for the 2017 — 2018 season.
Upon completion of the discussion of the non -Bristol Bay Red King Crab (BBRKC)
proposals:
It was moved by Schmeil and seconded by Bonney to accept the proposal from
Royal Aleutian Seafoods to lease KFDA's Bering Sea Opilio crab IPQ, KFDA's Eastern
Bering Sea Tanner Crab and KFDA's Western Bering Sea Tanner Crab based on a
margin sharing agreement similar to the last two years. The motion was approved by
unanimous voice vote.
In making the decision, the Board noted that the revenue received from Royal
Aleutian for the past two years has amounted to more per pound than the amount
offered by Trident Seafoods in response to this year's RFP.
Bonney left the meeting at 9:35 am.
The remaining Directors discussed the RPF responses for KFDA's BBRKC in detail.
Upon completion of the discussion:
It was Moved by Anderson and seconded by Schmeil to accept the proposal
from North Pacific Seafoods to lease KFDA's Bristol Bay Red King Crab (BBRKC) for
the following amounts: one lot for $.41/pound, one lot for $.36/pound, one lot for
$.31/pound, and one lot for $.281/pound. The motion was approved by unanimous
voice vote of the Directors present.
In making the decision, the Board noted that North Pacific Seafoods stated that
they would "pay $.26/pound minimum or $.021 over any competing bids for the same
lot". KFDA received a competing bid for a lot of KFDA's BBRKC and so has accepted
the larger dollar amount for this lot of BBRKC from North Pacific Seafoods.
Bonney returned to the meeting at 9:50 am.
Annual Financial Review - Freed reviewed the information contained in the annual,
written secretary/treasurer's report (attached). Freed will check with the City and
Borough clerks to find out if the Borough Assembly and City Council still want a
presentation about KFDA at a joint work session later this year.
VI. Public Comments
There were no public comments.
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KFDA Minutes
September 7, 2017
VII. Director Comments
The Director's discussed the possible use of KFDA's funds to support educational
opportunities, in the fishing industry, for youth in the community. It was noted that to maintain
KFDA's financial viability it is important that KFDA continue to work to acquire PQ. The
benefit to the community is additional processing in Kodiak and/or harvesting of the matching
IFQ by Kodiak harvesters. This will continue to be a topic of conversation in the future.
VIII. Date of Next Meeting/Items of Discussion
It was determined that additional meetings would only be needed if KFDA were presented
with an opportunity to accept/purchase PQ
IX. Adjournment
It was moved by Bongen and seconded by Schmeil to adjourn the meeting at 10:35 am. The
motion was approved by unanimous consent.
Kodiak Fisheries Development Association (KFDA)
Annual Secretary/Treasurer Report
September 7, 2017
All of the financial assets of KFDA were transferred from the City of Kodiak to KFDA
and placed in a high yield savings account with checking privileges at Wells Fargo
Bank on January 9, 2015. The starting balance was: $241,654.00. The signatories on
the account are: Jerry Bongen, President, Jeff Stephan, Vice -President and Linda
Freed, Secretary/Treasurer. The Secretary/Treasurer has maintained the account
since its inception.
2. The current balance in the account is: $335,663.93. Remaining financial activities this
year are: billing KFDA lessees (2) for their portion of the 2016 - 2017 ACPAO
expenses and KFDA's lease payment to Ocean Beauty (approx. $45,000). The
advertising cost for the RFP and the meeting have not yet been billed and paid. There
may also be some on-going legal expenses.
3. KFDA's income for the 2016 — 2017 year was: Royal Aleutian $4,110.06, Trident
$39,880.25 (plus $2,500 deposit) and APS $41,123.40 (plus $2,500 deposit). A total
of: $90,113.71. The prior year's income was: $112,112.49.
4. Application was made for KFDA's 2017 - 2018 IPQ in early June.
5. The biennial report was filed with the State of Alaska. KFDA is in good standing until
7/2/2019. Updates were made to KFDA's corporate records by removing Mike
Woodruff as a Director and changing the organization's mailing address to that of the
Secretary/Treasurer (3295 Woody Way Loop, Kodiak, AK 99615).
6. The 2017 - 2018 RFP for lease of KFDA's IPQ was revised, issued and advertised.
New ROFRr's have been executed in compliance with revised federal regulations,
except for one (Deep Creek Fisheries).
8. The 2016 — 2017 tax return has been completed.
The annual meeting date and location was established and advertised. The meeting
packet was developed and distributed.
10. Directors Freed and Schmeil were reappointed by the City Council and the Borough
Assembly to terms ending in July 2020 and Director Stephan was reappointed by the
City Council to a term ending in July 2020. Freed attended the Borough Assembly
meeting on July 20, 2017 to provide information about KFDA, prior to the
reappointments. Freed has been asked to attend a joint work session of the City
Council and Borough Assembly in December to provide an update about KFDA.