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2018-03-29 Special Meeting Kodiak Island Borough Assembly Special Meeting Agenda Thursday, March 29, 2018, School District Conference Room Immediately Following The Assembly Work Session This meeting was called by the Assembly. Page 1.ROLL CALL 2.CITIZENS COMMENTS (Limited to Three Minutes per Speaker) 3.CONSIDERATION OF MATTERS IN THE CALL FOR THE SPECIAL MEETING 2-4A.Approval Of A Letter Regarding Chinook Salmon PSC Cap Adjustments For The Gulf Of Alaska (GOA) Catcher Vessel (CV) Non-PollockTrawl Sector. 2018-03-29 NPFMC Chinook Letter 5B.Approval Of A Letter Addressed To the City of Kodiak Mayor And Council Regarding Consolidation. 2018-03-22 Consolidation Letter to the City 4.ADJOURNMENT Visit our website at www.facebook.com/Kodiakislandborough@KodiakBorough www.kodiakak.us Page 1 of 5 AGENDA ITEM #3.A. Kodiak Island BoroughCity of Kodiak 710 Mill Bay Road, Rm. 101710 Mill Bay Road, Rm. 220 Kodiak, AK 99615Kodiak, AK 99615 907.486.9310907.486.8636 March 30, 2018 Chairman Dan HullMarch 29, 2018 North Pacific Fishery Management Council Kodiak Alaska 605 West 4th, Suite 306 Anchorage, AK 99501-2252 comments.npfmc.org Re:Chinook (Oncorhynchus tshawytscha) salmon PSC cap adjustments for the Gulf of Alaska (GOA) catcher vessel (CV) non-pollock trawl sector Dear Chairman Hull, Kodiak is highly dependent on our diverse fisheries with the majority of the seafood industry 1 economic activity derived from groundfish. The near year-round operation ofthe groundfish trawl fleet fills critical gaps in economic activity allowing multiple processors to operate year-round. These processors, in turn, support diverse seasonal fisheries such as salmon, crab, herring, halibut and groundfish. Groundfish deliveries by trawl vessels represent 60% of the fish that crosses Kodiak’s docks annually. Groundfish, combined with the other seasonal fisheries, enables the community to support a permanent residential processing work force that would otherwise be filled by a transient workforce. Kodiak's social fabric, culture, economy and character, is in large part, determined by our diverse population. The Council is presently considering adjustments to the Chinook salmon PSC caps for the GOA CV non-pollock trawl fisheries.An adjustment to the Chinook salmon PSC cap would help prevent premature trawl fishery closures while preserving these important year- round fisheries. We support the Council’s effort in this regard. Alaska's fiscal crisis has been exacerbated in Kodiak because it remains highly dependent on fish landings for tax revenue to support local government. In the past 10 years, the Kodiak Island Borough has derived roughly 50% of its General Fund revenue fromfisheries taxes. The Borough's School District has a $1.5 million budget deficit and has asked that property taxes be raised to fill this gap. The City of Kodiak has historically depended on local sales tax to fund 55% of governmental activities. With thedecline in state revenue contributions, that percentage has grown to 65% of revenue from sales tax to fund the services provided by the City. In FY 2018 the City of Kodiak was faced with a $2.8 million deficit and has raised the sales tax cap in response to this Page 2 of 5 Approval Of A Letter Regarding Chinook Salmon PSC Cap Adjustments For Th... AGENDA ITEM #3.A. NPFMC Page2of 3 March 30, 2018 budget gap. The need for a stable workforce is critical to maintaining the follow-on economic activity that funds government that provides the infrastructure to allow the operation of our seafood industry. Over the past several years, declines inallowable fishery harvests have directly impacted the ability of local government to serve residents and maintain infrastructure on which our fisheries economy depends. Recently we have seen an 80% reduction in Pacific cod quotas, a 20% reduction for pollock, and a 25% reduction for arrowtooth flounder. These combined with lower halibut quotas, a commercial fishery disaster for pink salmon in 2016 (and as a consequence, a low pink forecast in 2018) means fewer landings, less income for residents, and lowertax revenues to support governmental operations of the community. We continue to strongly support the Council’s efforts to balance National Standard (NS) 1 – achieving optimum yield, NS 8 –taking into account the importance of fishery resources to fishing communities and NS 9 –minimize bycatch to the extent practicable. We appreciate the Council’s decision in Dec. 2016 to evaluate other regulatory actions to help deal with fishery management problems in the Gulf. We support adjusting the Chinook salmon PSC caps for the GOA CV non- pollock trawl sectors to reduce the risk of fishery closures and provide stability and flexibility both to the GOA trawl fleet as well as the shore-based processors that will benefit our community. Since the Council establishedthese caps in 2013, new information has become available that warrants their re-evaluation. Increased observer coverage in the Western Gulf trawl fisheries revealed significantly higher salmon bycatch in their trawl cod fishery than originally estimated. The WGOA Chinook PSC for 2003-2011, averaged 72Chinook per year. Observer data now available from the previously unobserved vessels of less than 60 feet indicate an average bycatch of 554 Chinook per year from 2013 to 2017, with a high of 1,686 Chinook in2017. This bycatch data from a significant sector of the Gulf trawl fleet at the time of final action was lacking. Now that those data are available, it warrants a re-evaluation to ensure the policy is a reasonable standard for the fishery. This clearly is not a request to modify bycatch limits simply because the bycatch limits are constraining. The current Chinook cap of 2,700 fish is an annual limit shared by both the trawl fleets in the WGOA (Sand Point King Cove) and the CGOA (Kodiak). The WGOA fleet only fishes non-pollock trawl targets in the first quarter of the year, while the CGOA trawl fleet fishes non-pollock targets all year long. If the cap is reached and provokes a management closure of the trawl fisheries, it impacts CGOA participants, support sectors and communities disproportionately since the cap must support Kodiak non-pollock non-rockfish trawl landings throughout the calendar year. This occurred in May 2015 when the trawl fishery for cod and flatfish closed after hitting the Gulf wide 2,700 2 salmon cap. According to NMFS, the revenue losses due to that closure were estimated at $4.6 million in ex-vessel and $11.3 million in gross first wholesale, in addition to indirect impacts on local employment, support services, and fish related public funds impacting the community of Kodiak. That year, a one-time emergency rule allowed the fishery to reopen in August. Page 3 of 5 Approval Of A Letter Regarding Chinook Salmon PSC Cap Adjustments For Th... AGENDA ITEM #3.A. NPFMC Page3of 3 March 30, 2018 Other new information is the recent and consistent Chinook salmon genetic data that suggests more than 95% of the Chinook salmon caught as bycatch in the Gulf trawl fisheries are from Southeast Alaska, British Columbia and the Pacific Northwest. Hatcheries in these regions released very large numbers of fingerling Chinook, an average of 239 million annually over the years 2010- 34 2016. The most recent data available from the 2016 Gulf pollock fisheriesshows that only about 1.2% of Gulf Chinook bycatch are from the northwest Gulf streams (Alaska's south central mainland, Alaska Peninsula, Kenai Peninsula and Kodiak Island). The benefitsof adjusting the salmon bycatch caps are meaningful to the community of Kodiak. Adjusting the Chinook salmon cap even slightly will help provide more flexibility for the Kodiak trawl industry to operate and reduce economic impacts to our communities from premature trawl fishery closures. The initial Council analysis did not indicate any identifiable harm in providing this kind of adjustment, because its impacts will be diffuse across many communities and thousands of miles of coastline without affecting any one community disproportionately. We encourage the Council to provide flexibility to the Kodiak trawl fleet by adjusting the Chinook PSC caps in the non-pollock trawl groundfish fisheries to help prevent more economically damaging fishery closures. Allof the options for new limits proposed under this action will keep the total Chinook PSC limits well below the ESA 40,000 Chinook salmon cap, and the analysis notes that none of the alternatives will cause significant adverse impacts to Chinook salmon stocks. Sincerely, Dan Rohrer, Mayor Pat Branson, Mayor Kodiak Island Borough City of Kodiak 1. McDowell Group, Economic Impact of the Seafood Industry on the Kodiak Island Borough (May 2016) p.6 2. NMFS Emergency Rule: Apportion additional Chinook Salmon PSC to Non-Rockfish Trawl CVs Regulatory Impact Review – June 2015 p 34-35 3. North Pacific Fishery Management Council (NPFMC). January 2018. Initial Review Draft Chinook Salmon Prohibited Species Catch in the Gulf of Alaska Non-Pollock trawl Fisheries page 63 table 21. Available: www.npmfc.org 4. Genetic Stock Composition Analysis of the Chinook Salmon Bycatch Samples from the 2016 Gulf of Alaska Trawl Fisheries, NOAA Technical Memorandum NMFS-AFSC-370 Feb 2018 Page 4 of 5 Approval Of A Letter Regarding Chinook Salmon PSC Cap Adjustments For Th... AGENDA ITEM #3.B. 710 Mill Bay Road Kodiak, Alaska 99615 Phone (907) 486-9310 Fax (907) 486-9391 March 22, 2018 City of Kodiak Mayor and City of Kodiak Council 710 Mill Bay Road, Room 219 Kodiak, Alaska 99615 Dear Mayor Branson and Council Members, The Kodiak Island Borough (KIB)formally invites the City of Kodiak to engage and collaborate regarding discussions pertaining to government reorganization (consolidation, merger, unification, and annexation).The KIB looks forward to scheduling a joint KIB/City community forum for the purpose of hearing from the State’s Local BoundaryCommission. As you know, the KIB has an RFP that is out for research and analysis for consolidation of the Borough and the City and the proposals will be accepted until 3 p.m. on April 13. We will keep you apprised of the results and we look forward to sharing the information with you. Respectfully, Daniel A.Rohrer Kodiak Island Borough Mayor Page 5 of 5 Approval Of A Letter Addressed To the City of Kodiak Mayor And Council R... Kodiak Island Borough Assembly Special Meeting Guidelines March 29, 2018, Borough Assembly Chambers Immediately Following The Work Session 1. ROLL CALL KIBC 2.25.070.... the Chair shall cause the record to reflect the absence of the member, the REASON for the absence, and whether the absence is excused by the Assembly. Recommended motion: Move to excuse any Assembly member Schroeder who is absent due to personal leave. VOICE VOTE ON MOTION. 2. CITIZENS' COMMENTS (These are limited to three minutes per speaker.) ASK SPEAKERS TO SIGN IN AND STATE THEIR NAME FOR THE RECORD. 3. CONSIDERATION OF MATTERS IN THE CALL FOR THE SPECIAL MEETING A. Approval Of A Letter Regarding Chinook Salmon PSC Cap Adjustments For The Gulf Of Alaska (GOA) Catcher Vessel (CV) Non -Pollock Trawl Sector. Recommended motion: Move to approve the letter regarding Chinook Salmon PSC Cap adjustments for the Gulf of Alaska (GOA) Catcher Vessel (CV) Non -Pollock Trawl Sector. Staff Report — Assembly Member Smiley, KFWG Chair. Assembly discussion. ROLL CALL VOTE ON MOTION. B. Approval Of A Letter Addressed To the City of Kodiak Mayor And Council Regarding Consolidation. Recommended motion: Move to approve a letter addressed to the City of Kodiak Mayor and Council regarding consolidation. Staff Report — Manager Powers. Assembly discussion. ROLL CALL VOTE ON MOTION. 4. ADJOURNMENT Recommended motion: Move to adjourn the meeting. VOICE VOTE ON MOTION. Kodiak Island Borough Assembly Guidelines March 29. 2018 Paoe 1 G too v N C C 0 U N W N N N G) U _J (7 v z z > W N N L ` Cc cL)T O N 0c L Z V p U > Y Y U U) EE v) > W F J o o Of 0. m v) 2 2 2 0 F- d 2 y 4 Z LL W 1w • d 4)) \ Tr N Z U .d a O j c ` c T C O E O I- L 0 p 3 (J m Y c a� (E U) W J Q o ° o U m v) ui vi oo F c �� T z Z Q o. `m � J T a Lu Cn } U m P \ z m O' m ' a) N c E O cc o> �. LLJ > m 'c - o 0 Of 0 U U N Y E to T to N > J N E °, m cn F E 2 O z W C7 Z N 'E -� = o m w P O 3 m N c O W Y ccu N Z 3 E o Z D c o Of U m U Y U) In (% > O Q � � `o m U) Q Ix O Z ? m O O c N Ym E G L :3•p c o C aa) E N � o N V 3 U Y U) U) cn U) > m U) (7 v KODIAK ISLAND BOROUGH Meeting Type: i4�xklb(Y Sl CC4k11 11 "5 Date: b3 (-�al y P1lealsePRINT your name legibly Please PRINT your name legibly View our website: www.kodiakak.us Visit our Facebook page: www.facebook.com/KodiakIslandBorough Follow us on Twitter: @KodiakBorough Kodiak Island Borough Assembly Newsletter Vol. FY2018, No. 20 March 30, 2018 At Its Special Meeting Of March 29, 2018, The Kodiak Island Borough Assembly Took The Following Actions. The Next Regular Meeting Of The Borough Assembly Is Scheduled On Thursday, April 5, 2018, At 6:30 p.m. In The Borough Assembly Chambers. APPROVED A Letter Regarding Chinook Salmon PSC Cap Adjustments For The Gulf Of Alaska (GOA) Catcher Vessel (CV) Non-Pollock Trawl Sector. APPROVED A Letter Addressed To the City of Kodiak Mayor And Council Regarding Consolidation.