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2017-09-07 RM MinutesKodiak Fisheries Development Association September 7, 2017 Minutes I SEP 18 2017 (a 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. Page 2 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. Page 3 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.