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FY2010-16 Urging The North Pacific Fishery Management Council To Retain The Intent Of The Current Inshore/Offshore Regulations In The Gulf Of Alaska Quota Allocation Decisions1 Introduced by: Mayor Selby 2 Requested by: Mayor Selby 3 Drafted by: Mayor Selby Introduced on: 11/05/2009 4 Adopted on: 11/05/2009 5 6 KODIAK ISLAND BOROUGH 7 RESOLUTION NO. FY 2010 -16 8 9 A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 10 URGING THE NORTH PACIFIC FISHERY MANAGEMENT COUNCIL TO RETAIN 11 THE INTENT OF THE CURRENT INSHORE /OFFSHORE REGULATIONS 12 IN THE GULF OF ALASKA QUOTA ALLOCATION DECISIONS 13 14 WHEREAS, the North Pacific Fishery Management Council (NPFMC) is considering allocating 15 Pacific cod quotas in the Western and Central Gulf of Alaska (GOA) amongst gear types; and 16 17 WHEREAS, the NPFMC is considering allowing mobile offshore processors options that will 18 supersede the current inshore /offshore processing sector coastal community protections, 19 effectively undoing the present inshore /offshore regulations; and 20 21 WHEREAS, motherships are mobile offshore vessels that catch and process their own catch 22 as well as receive deliveries from catcher vessels and process this catch at sea; and 23 24 WHEREAS, there has been no mobile mothership processing of Federal groundfish harvests 25 in the Central GOA and limited mobile mothership processing in the Western GOA since 2000; 26 and 27 28 WHEREAS, allowing increased mobile mothership processing activity in the GOA groundfish 29 fisheries would create alternative fishery markets, but would not represent historical mothership 30 activity or consider coastal community dependence; and 31 32 WHEREAS, Kodiak is a processing hub with multiple processors that process fishery 33 resources year round. Year round processing jobs are possible because of the large volume of 34 fish delivered into the Port of Kodiak. These processing workers are residents of and contributors 35 to the overall Kodiak economy; and 36 37 WHEREAS, the community of Kodiak depends on deliveries of multispecies groundfish 38 including Flatfish and Pacific cod to maintain our year round residential processor work force; 39 and 40 41 WHEREAS, sufficient inshore processing markets currently exist and can increase or improve 42 under the present inshore /offshore rules by adding or improving shorebased processors and 43 stationary mothership floating processors that operate in a single geographical location; and 44 45 WHEREAS, setting public policy that encourages increased mobile offshore processing will 46 create unfair competition for catcher vessel harvests with more efficient and cost effective 47 processing platforms across the GOA that could erode Kodiak's and other GOA Coastal 48 communities groundfish landings; and 49 50 WHEREAS, certain trawl catcher - processors operating in the rationalized groundfish harvests 51 in the BSAI Amendment 80 fisheries have already received great benefits from the NPFMC Kodiak Island Borough Resolution No. FY2010 - 16 Page 1 of 3 52 allowing those vessels to form extremely efficient harvesting cooperatives which will allow the 53 vessels with excess capacity to unfairly take processing opportunities from the groundfish 54 dependent processors operating in Kodiak and other GOA coastal communities; and 55 56 WHEREAS, certain long -line catcher processors operating within the much larger BSAI cod 57 fisheries have an allocation of Pacific cod and are seeking legislative protection to allow them 58 individual catch shares for cooperative harvesting and will utilize any excess capacity to unfairly 59 take processing opportunities from the groundfish dependent processors operating in Kodiak and 60 other GOA coastal communities; and 61 62 WHEREAS, Kodiak processing plants employ 1,158 employees with a combined payroll of 63 over $54 million annually; and 64 65 WHEREAS, Kodiak processing plants, harvesters, and support businesses help generate raw 66 fish taxes, severance taxes, sales taxes, and property taxes that support both the City of Kodiak 67 and the Kodiak Island Borough community infrastructures; and 68 69 WHEREAS, the City of Kodiak infrastructure has been built to support the Kodiak harvesting 70 and processing sectors including water, sewage, electricity, transportation, boat harbors, and the 71 large vessel boat lift. These services depend on user fees to cover infrastructure costs; and 72 73 WHEREAS, those sectors of the Kodiak economy not directly engaged in fishing consist 74 largely of support services for those involved directly or indirectly in the fishing industry; and 75 76 WHEREAS, regulatory changes that result in fish currently being processed in dependent 77 coastal communities moving to mobile offshore processors will erode community stability and 78 cause the loss of revenue and jobs to Alaskans and their communities, and cause irreparable 79 economic damage; and 80 81 WHEREAS, the NPFMC alternative to allow increased mobile offshore processors within 82 certain geographic boundaries is flawed because the revenues associated with mothership 83 processing activity within a community boundary may not be comparable to revenues associated 84 with shoreside processing activity in another community and is a direct re- allocation of the limited 85 fishery resource across coastal communities; and 86 87 WHEREAS, some CQE communities may benefit from limited operations of stationary floating 88 processors that purchase groundfish from limited locations within the municipal boundaries of 89 said CQE communities so long as their mobility is limited and they comply with all regulations 90 that cover shore -based processors operating in the coastal communities of the Gulf of Alaska; 91 and 92 93 NOW, THEREFORE, BE IT RESOLVED BY the Kodiak Island Borough that the NPFMC should 94 set policy to preserve present participation of coastal fishing communities by regulating inshore 95 and offshore floater processors as they are now regulated. 96 97 BE IT FURTHER RESOLVED THAT the Kodiak Island Borough endorses the no mothership 98 processing option in the Central GOA and Western GOA for all federal groundfish species. 99 100 BE IT FURTHER RESOLVED THAT the Kodiak Island Borough endorses the provision for a 101 stationary floating processor to operate in up to three geographical locations but cannot operate 102 as a catcher processor in the same calendar year. These stationary floating processors should Kodiak Island Borough Resolution No. FY2010 -16 Page 2 of 3 103 be required to operate inside city municipal boundaries for the CQE communities listed in the 104 motion with an annual quota cap on total volume processed applied. 105 106 BE IT FURTHER RESOLVED THAT any change of allocation away from inshore processing 107 should be subjected to extensive analysis of economic impact to coastal communities prior to 108 adoption to assure that there is no negative impact to coastal communities. 109 110 111 112 113 114 115 116 117 118 119 ATTEST: 120 121 122 123 U dl_ ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS FIFTH DAY OF NOVEMBER, 2009 iiW i t Nova M. Javier, M C orough Clerk KODIAK ISLAND BOROUGH Je ome M. Selby, Bor Kodiak Island Borough Resolution No. FY2010 -16 Page 3 of 3