FY2023-11 Amending The Bylaws Of The Kodiak Fisheries Development Association1
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Introduced by: Mayor and Assembly
Drafted by: KFDA Chairperson
Introduced on: 09/01/2022
Postponed to: 10/06/2022
Amended on: 10/06/2022
Adopted on: 10/06/2022
KODIAK ISLAND BOROUGH
RESOLUTION NO. FY2023-11
A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING THE
BYLAWS OF THE KODIAK FISHERIES DEVELOPMENT ASSOCIATION
WHEREAS, the North Pacific Fishery Management Council adopted the Bering Sea/Aleutian
Islands Crab Rationalization Program as Amendments 18 and 19 to the Fishery Management
Plan for Bering Sea/Aleutian Islands King and Tanner Crabs; and
WHEREAS, under the Program, Kodiak was designated as an eligible crab community (ECC)
and in connection with such designation, the City of Kodiak and the Kodiak Island Borough have
the authority to jointly exercise certain rights of first refusal (ROFR) with respect to processor
quota shares (PQS) allocated under the Program; and
WHEREAS, to exercise the ECC ROFR, the City of Kodiak and the Kodiak Island Borough have
jointly designated the Kodiak Fisheries Development Association (KFDA) as the region's eligible
crab community entity (ECCE) having the authority to do so on their behalf; and
WHEREAS, the current bylaws were adopted by the initial KFDA directors in 2005; and
WHEREAS, the Kodiak Fisheries Development Association bylaws may only be amended
jointly by resolution of the Kodiak City Council and the Kodiak Island Borough Assembly; and
WHEREAS, the Board of Directors is recommending a number of amendments the KFDA's
bylaws; and
WHEREAS, the City of Kodiak adopted the same resolution amending the KFDA bylaws on
August 25, 2022.
NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND
BOROUGH that:
Section 1: The current bylaws are hereby rescinded. The Kodiak Fisheries Development
Association bylaws are amended as follows:
A. Article IV Section 3. C. Last sentence amended to read "... approval by a majority of the
members of the Board is required for all Board action."
Kodiak Island Borough, Alaska Resolution No. FY2023-11
Page 1 of 2
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B. Article IV Section 4. Delete the first sentence, as who appoints Directors is laid out in the P
previous section of the by-laws. C. Article IV Section 10. Amended to read "Presence of the 4/7 of the members of the Board
shall constitute a quorum for the transaction of business at all meetings."
D. Article VIII Section 2. Delete "or shareholders"
E. Article IX Section 2. Amend to read "The fiscal year of the Corporation shall be from July 1
through June 30th."
Section 2. A copy of the adopted bylaws shall be attached to this resolution as part of the
official record.
Section 3. A copy of this resolution shall be forwarded to the City of Kodiak after adoption.
Section 4. This resolution is effective upon adoption by both municipalities.
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS SIXTH DAY OCTOBER, 2022
KODIAK ISLAND BOROUGH 0
p 2 I �7 �/ ATTE T:
l j C rdyw FOP M.
-
Will aiWill m Roberts, Mayor
No . Javier, MMC, B ough Clerk
VOTES:
Ayes: Smith, Turner, Williams, Arndt, Delgado, Griffin, Smiley
Noes: None
Kodiak Island Borough, Alaska
Resolution No. FY2023-11
Page 2 of 2
PROPOSED REVISIONS September 2021
BYLAWS
OF
KODIAK FISHERIES DEVELOPMENT ASSOCIATION
ARTICLE I - NAME
The name of the organization shall be Kodiak Fisheries Development
Association (the "Corporation").
ARTICLE 11- PURPOSE
The Corporation is organized exclusively to promote the social welfare of
the City of Kodiak and the Kodiak Island Borough (together, the "Kodiak Community"),
consistent with Section 501(c)(4) of the Internal Revenue Code of the United States (as
the same may be amended, supplemented, or replaced from time to time, the "Internal
Revenue Code"). Subject to the foregoing, the specific purposes for which the
Corporation is organized are as follows:
A. To act as an Eligible Crab Community Entity ("ECCE") on behalf of
the Kodiak Community for purposes of exercising rights of first refusal in connection
with proposed transfers of processor quota shares ("PQS") and individual processor
quota ("IPQ"), pursuant to the Bering Sea/Aleutian Island ("BS/AI") crab
rationalization program regulations set forth at 50 C.F.R. part 680, as the same may be
amended from time to time (the Regulations");
B. If the Council of the City of Kodiak (the "City Council") and the
Kodiak Island Borough Assembly (the "Borough Assembly") authorize it to do so, to act
as an Eligible Crab Community Organization ("ECCO") for the Kodiak Community for
purposes of holding crab rationalization quota shares ("QS") on behalf of the Kodiak
Community and making the resulting individual fishing quota ("IFQ") available to
residents of the Kodiak Community; and
C. In general, to exercise those powers set forth in AS 10.20.005, et seq.,
as now enacted or as may hereafter be amended, and to exercise such other powers that
now are or hereafter may be conferred by law upon a corporation organized for the
purposes set forth herein or that are necessary or incidental to the powers so conferred,
subject only to such limitations that are or may be prescribed by state or federal law,
any resolution of the City Council or the Borough Assembly, these Articles of
Incorporation, and the Corporations Bylaws, including without limitation the
limitations placed on organizations exempt from taxation under Section 501(c)(4) of the
Internal Revenue Code.
ARTICLE III - MEMBERSHIP
The Corporation shall have no members.
ARTICLE IV - BOARD OF DIRECTORS
Section 1. Functions and Powers. The initial Board of Directors (the
"Initial Board") shall have the authority to adopt the Corporation's initial Bylaws, elect
its initial officers, take whatever steps may be appropriate to qualify it as an ECCE with
the National Marine Fisheries Service ("NMFS") pursuant to the Regulations, execute
right of first refusal contracts between the Corporation and PQS holders as required
under the regulations, and file affidavits of execution with NMFS. All other authority
to act as a board of directors for the Corporation shall be reserved to the Board of
Directors appointed pursuant to Article IV, Section 3, below (the "Board of Directors"
or the "Board"), provided that the authority of the Board of Directors to manage the
affairs of the Corporation; determine its policies within the limits of the Articles of
Incorporation and these Bylaws; collect, administer, and disburse the Corporation's
funds; approve projects; and otherwise actively pursue and promote the purposes of the
Corporation, shall in all cases be subject to such limits as may be jointly imposed from
time to time by the City Council and the Borough Assembly. The salaries, if any, of all
employees of the Corporation shall be determined by or under the direction of the City
Council and the Borough Assembly. The budget and funding of the Corporation shall
be as jointly approved by the City Council and Borough Assembly from time to time.
Section 2. Number. The number of directors serving on the Initial Board
shall be three (3). The number of Directors serving on the Board of Directors shall be
seven (7). The Initial Directors shall be named by the incorporators and shall remain in
office until their successors are designated and qualified in accordance with Article IV,
Section 3, below.
Section 3. Composition and Voting Rights. The Board of Directors of the
Corporation shall be appointed by the City Council and the Borough Assembly, as
follows:
A. Two (2) directors shall be appointed by the City Council;
B. Two (2) directors shall be appointed by the Borough Assembly; and
C. Three (3) directors shall be jointly appointed by the City Council
and the Borough Assembly.
At least two (2) directors shall represent the interests of Kodiak Community BS/AI crab
harvesters, and at least two (2) directors shall represent the interests of Kodiak
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Community BS/ AI crab processors. Except as otherwise provided in the Corporation's
Articles of Incorporation or these Bylaws, approval by a majority of the members of the
Board is required for all Board action.
Section 4. Appointment and Terms of Office. Appointments shall be
made annually, at July meetings of the City Council and Borough Assembly. Directors
shall have staggered three (3) year terms of office, assigned by a random selection
method at the first Board meeting, such that as close as possible to one third (1/3) of the
Board is up for appointment each year. Directors shall serve until their successors are
appointed and qualified.
Section 5. Meetings. Meetings of the Corporation's Board of Directors
shall be held at times and places designated by the Board. Special meetings of the
Board may be called by a majority of the Board or by the President. Participation in a
Board meeting by means of a telecommunications device that allows all parties to hear
each other at the same time shall be the equivalent of presence in person at a meeting.
Section 6. Public Participation at Meetings. Members of the public shall
be permitted to attend and shall be given an opportunity to be heard at all meetings of
the Corporation's Board of Directors; provided that the Board may from time to time
enter closed executive session as permissible under Alaska statutes.
Section 7. Notice of Meetings. Notice of each meeting describing the
matters to come before the Board at that meeting shall be given in writing to each
director by mail, facsimile, or electronic mail transmission, not less than three (3) days
prior to the meeting. In addition, reasonable public notice of any meeting of the
Corporations directors, which notice shall include the meeting's date, time, and place,
shall be given at least three (3) days in advance of the meeting, in accordance with A.S.
44.62.310(e).
Section 8. Waiver of Notice. A director may waive any notice required to
be given by signing a written waiver either before or after the meeting. A director may
not waive the failure to give public notice per A.S. 44.62.310(e).
Section 9. Presumption of Assent: A director who is present at a meeting of
the Board of Directors at which action on any corporate matter is taken shall be presumed
to have assented to the action taken unless:
A. The director objects at the beginning of the meeting, or promptly upon
the director's arrival, to holding the meeting or transacting business at the meeting;
B. The director's dissent or abstention from the action taken is entered in
the minutes of the meeting; or
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C. The director files a written dissent or abstention with the presiding
officer of the meeting before its adjournment or with the Corporation within a reasonable
time after adjournment of the meeting.
The right of dissent or abstention is not available to a director who votes in favor of the
action taken.
Section 10. Quorum. Presence of the 4/ 7 of the members of the Board
shall constitute a quorum for the transaction of business at all meetings.
Section 11. Action Without a Meeting. The Corporations Board of
Directors may not take action without a meeting.
Section 12. Removal. A director may be removed from the Board of
Directors at the discretion of the entity or entities that appointed such director. A
director may also be removed by the Board if he or she is absent from three (3)
consecutive Board meetings without being excused by a majority of the other directors.
Section 13. Remuneration. No salary or other remuneration shall be paid to
directors unless approved in advance by joint resolution of the City Council and the
Borough Assembly.
ARTICLE V - COMMITTEES
Section 1. Designation. The Board of Directors may appoint committees
to assist and advise the Board with those functions, powers, duties, and tenure as the
Board deems appropriate. Each committee shall consist of at least two (2) directors and
such other persons as the Board may designate who need not be members of the Board
of Directors.
Section 2. Limitation of Committee Powers. Committees shall exercise
advisory authority only, and any committee recommendation shall require subsequent
action by the Board of Directors before binding the Corporation.
ARTICLE VI - OFFICERS AND EXECUTIVE DIRECTOR
Section 1. Number and Title. The officers of the Corporation shall be a
President, a Vice President, a Secretary, and a Treasurer, all of whom shall be elected by
the Board of Directors. The Secretary and the Treasurer may be, but need not be,
members of the Board.
Section 2. Election. Officers shall be elected annually, at the first meeting
following appointment of the Board. The Initial Directors may elect interim officers,
who shall hold office only until the Board of Directors is appointed.
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Section 3. Term. Officers other than those elected by the Initial Board
shall hold office for one (1) year terms, and all officers shall serve until their respective
successors are elected and qualified.
Section 4. Resignation. Any officer of the Corporation may resign at any
time by giving written notice to the Board of Directors, or to any other officer of the
Corporation. Any such resignation is effective when the notice is delivered, unless the
notice specifies a later date, and shall be without prejudice to the contract rights, if any, of
such officer.
Section 5. Removal. The Board of Directors may remove any officer elected
by it, with or without cause. The removal shall be without prejudice to the contract rights,
if any, of the person so removed.
Section 6. Vacancies. If the office of any officer becomes vacant by any
reason, the directors may appoint a successor who shall hold office for the unexpired term.
Section 7. Remuneration.. No salary or other remuneration shall be paid to
an officer or employee of the Corporation unless approved in advance by the City Council
and the Borough Assembly.
Section 8. Executive Director. The City Council and Borough Assembly
may authorize the Corporation to retain an Executive Director, who shall be responsible
for the administration and management of the Corporation. If the City Council and
Borough Assembly authorize an Executive Director, the Executive Director shall be
appointed and may be removed as the City Council and Borough Assembly direct
ARTICLE VII - DUTIES OF OFFICERS
Section 1. President. The President shall preside at all meetings of the
Board of Directors..
Section 2. Vice President. The Vice President shall, in the absence or
disability of the President, perform the duties of the President.
Section 3. Secretary. The Secretary shall supervise the keeping of the
minutes of all meetings of the Board of Directors of the Corporation. The Secretary
shall have charge of such books and papers as the Board of Directors may direct,
including without limitation those records specified in Article VIII, below, which shall,
at all reasonable times, be open to the examination of any director upon reasonable
notice to the Secretary. The Secretary shall arrange to provide proper notice of all
meetings of the Board of Directors.
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Section 4. Treasurer. The Treasurer shall supervise the keeping of full
and accurate accounts of receipts and disbursements in books belonging to the
Corporation.
Section 5. Contract Rights. The appointment of an officer does not of itself
create any contract rights in favor of the officer.
Section 1. Books of Accounts and Minutes. The Corporation:
A. Shall keep as permanent records minutes of all meetings of its Board of
Directors and a record of all recommendations of any committee(s) of the Board of
Directors;
B. Shall maintain appropriate accounting records;
C. Shall keep a copy of the following records at its principal office:
1. The Articles or Restated Articles of Incorporation and all
amendments to them currently in effect;
2. The Bylaws or Restated Bylaws and all amendments to them
currently in effect;
3. Its financial statements for the past three (3) years, including
balance sheets showing in reasonable detail the financial condition of the Corporation as
of the close of each fiscal year, and an income statement showing the results of its
operations during each fiscal year prepared on the basis of generally accepted accounting
principles or, if not, prepared on a basis explained therein;
and officers;
4. A list of the names and business addresses of its current directors
5. Its most recent biennial report delivered to the State of Alaska;
6. Its Application to become an ECCE, and all supporting
documents, including but not limited to all right of first refusal contracts with PQS and/or
IPQ holders;
7. Records related to every right of first refusal offered to the
Corporation, its response to the same, and all related documents; and
8. All reports the Corporation may submit to the National Marine
Fisheries Service or the State of Alaska.
Section 2. Copies of Resolutions. Any person dealing with the Corporation
may rely upon a copy of any of the records of the proceedings, resolutions, or votes of the
Board of Directors, when certified by the President or Secretary.
ARTICLE IX - MISCELLANEOUS PROVISIONS
Section 1. Checks and Notes. All financial instruments of the Corporation
shall be signed by the officer or officers designated by the Board of Directors.
Section 2. Fiscal Year. The fiscal year of the Corporation shall be from
July 1 through June 30.
Section 3. Deposits. All funds of the Corporation not otherwise employed
shall be deposited in interest-bearing accounts selected by the Treasurer and approved
by a majority of the directors.
Section 4. Acceptance of Gifts, Donations, etc. No gift, donation, bequest,
or subscription to the Corporation shall be deemed to have been accepted until acted
upon affirmatively by the Board of Directors.
Section 5. Conflict of Interest. A director may be present during and
participate in discussion and action regarding any Corporation transaction with respect
to which a director has a direct or indirect material financial interest if and only if: (a)
the director discloses the material facts of his or her financial interest; (b) the Board
authorizes the conflicting interest transaction by a vote sufficient to meet the Board
action requirements of these Bylaws, without counting any interested director's vote;
and (c) the Board can demonstrate by clear and compelling evidence that the
transaction is reasonable and fair to the Corporation at the time it is authorized,
approved, or ratified. If any of the foregoing conditions are not satisfied with respect to
any transaction involving the Corporation in connection with which a director has a
direct or indirect material financial interest, such director may not be present during
and may not participate in any discussion or action with respect to such transaction.
ARTICLE X - PARLIAMENTARY PROCEDURE
The most recent edition of Robert's Rules of Order shall govern questions
of parliamentary procedure at all meetings of the Board of Directors, the Executive
Committee, or any other committee of the Corporation.
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ARTICLE XI - AMENDMENTS
These Bylaws may be amended or replaced only by a joint resolution of
the City Council and Borough Assembly.
ARTICLE XII - INDEMNIFICATION, INSURANCE, AND BONDING
Section 1. Officers and Directors. The Corporation shall indemnify and
defend all present and former directors, officers, employees, and agents of the
Corporation against any expenses of any proceeding (including by or in the right of the
Corporation) to which they are parties because they are or were directors, officers,
employees, or agents of the Corporation, all as defined and to the fullest extent
permitted by law.
Section 2. Insurance. The Corporation may purchase and maintain
insurance on behalf of any person who is or was serving at the request of the
Corporation as a director, officer, employee, or agent of another corporation,
partnership, joint venture, trust, other enterprise, or employee benefit plan against any
liability asserted against such person and incurred by such person in any such capacity
or arising out of such person's status as such, whether or not the Corporation would
have the power to indemnify such person against such liability under the provisions of
this Article.
Section 3. Bondin . The Board may require that any person authorized to
sign checks for the Corporation shall furnish, at the expense of the Corporation, a
fidelity bond in such sum as the Board shall prescribe.
ADOPTED by the initial Board of Directors on September 13, 2005.
Jerry Bongen, President
Laine O'Brien, Secretary
N.