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2009-05-28 Work SessionKodiak Island Borough Assembly Work Session Thursday, May 28, 2009, 7:30 p.m., Borough Conference Room Work Sessions are informal meetings of the Assembly where Assembly members review the upcoming regular meeting agenda packet and seek or receive information from staff. Although additional items not listed on the work session agenda are discussed when introduced by the Mayor, Assembly, or staff, no formal action is taken at work sessions and items that require formal Assembly action are placed on regular Assembly meeting agenda. Citizen's comments at work sessions are NOT considered part of the official record. Citizen's comments intended for the "official record" should be made at a regular Assembly meeting. CITIZENS' COMMENTS (Limited to Three Minutes per Speaker) AGENDA ITEMS: 1. Gulf of Alaska LLP Cod Endorsement Recency - Letter to Secretary of Commerce PACKET REVIEW PUBLIC HEARING State of Alaska Alcoholic Beverage Control Board Kodiak Inn, Inc. Request for Transfer of Controlling Interest; Applicants: Judith E. Johnson, John R. Johnson, and Douglas L. Johnson. Ordinance No. FY2010 -01 Levying Taxes on All Taxable Real and Personal Property Within the Kodiak Island Borough for the Expenses and Liabilities of the Kodiak Island Borough for the Fiscal year Commencing on the First Day of July 2009 and Ending on the Thirtieth Day of June 2010 (Fiscal Year 2010 Budget). CONTRACTS Contract No. FY2009 -19 Between the Kodiak Island Borough and the Kodiak Chamber of Commerce for Economic Planning and Project Development Within the Kodiak Island Borough for FY2010. Contract No. FY2009 -20 Between the Kodiak Island Borough and Kodiak Island Convention and Visitors Bureau for Destination Marketing and Tourism Development Services for FY2010. RESOLUTIONS Resolution No. FY2009 -35 Authorizing the Borough Manager to Apply for and Receive Funds From the U.S. Department of Energy, Energy Efficiency and Conservation Block Grant. ORDINANCES FOR INTRODUCTION Ordinance No. FY2009- 2009 -01E Amending Ordinance No. FY2009 -01 Fiscal Year 2009 Budget by Amending Budgets to Account for Various Revenues That are Over Budget, Provide for Additional Expenditures, and Moving Funds Between Projects. OTHER ITEMS Confirmation of Assembly Appointment to the Womens Bay Service Area Board. EXECUTIVE SESSION Borough Clerk's Performance Evaluation. MANAGER'S COMMENTS CLERK'S COMMENTS MAYOR'S COMMENTS ASSEMBLY MEMBERS COMMENTS May 28, 2009 r - ` Honorable Gary Locke, U.S. Secretary of CommerMoDIAK ISLAND BOROUC +. Washington, D.C. CLERK'S OFFICE CIED TO: ASSEMBLY MAYOR Dear Mr. Secretary, MANAGERJZOTHER DRAFT....DRAFT.... DRAFT....DRAFT.... DRAFT....DRAFT.... DRAFT....DRAFT We elected officials serving on the Kodiak Island Borough Assem concerned that the Gulf of Alaska cod fishery permit reduction program proposed by the North Pacific Fishery Management Council (NPFMC) will result in economic harm to Kodiak and other coastal communities in the Central and Western Gulf of Alaska. We are writing you today to explain our concerns and seek your help. We understand that the NPFMC has recommended that you, Mr. Secretary, sign into law the Limited License Permit (LLP) Cod Recency program, which would permanently remove 790 permits from the fixed (pot and longline) gear cod fishery in the Gulf of Alaska (GOA). We also understand that many Kodiak residents who are stakeholders on both sides of the issue have long been engaged in the tedious Council process involving the LLP cod permit reduction program. However, it is not the interest of the Kodiak Island Borough Assembly who among the stakeholders benefits from this proposal. Our concern is this: the proposed permit reduction program substantially reduces access to the cod fishery by permanently removing 70% of the fixed gear cod permits in the Gulf of Alaska without a thorough socio- economic analysis of the impacts on the future of Kodiak and its coastal neighbors. Therefore, we ask that you refrain from signing the LLP Cod Endorsement Recency program into law unless an independent socio- economic study demonstrates that this permit reduction proposal will not negatively impact Kodiak and the coastal communities in the Central and Western Gulf of Alaska. As you know, Kodiak is a major economic hub in the North Pacific and has been for hundreds of years. Kodiak, which consistently ranks among the top three fishing ports in the nation, is homeport to the largest and most diversified fishing fleet in the U.S. It is a key player in the commercial fishing industry, which is the largest private sector employer in the State of Alaska. The Gulf of Alaska cod fishery is an essential part of our region's robust fisheries and is vital to the economy of Kodiak and our coastal neighbors. Currently, the fixed gear cod fishery includes 1,147 permits. The federal fixed gear cod fishery in the Gulf of Alaska already has been rationalized: It is a limited entry fishery, currently open to the 1,147 fishermen who hold cod permits. The LLP permit reduction proposal would further limit entry to the cod fishery by giving 360 permit holders the right to fish cod with fixed gear in the federal waters of the Gulf of Alaska. Limiting access to the cod fishery to this degree is of great concern to us because it may not be in the best interest of the Kodiak community and its coastal neighbors. Of the nearly 790 fishermen who would lose access to the cod fishery under the proposal, 600 are active in other GOA fisheries and often harvest several species to balance their fishing operations. Under the permit reduction proposal, these 600 MAY 272009 fishermen, as well as future generations of Kodiak fishermen, would need to purchase an LLP cod permit from the small pool of 360 permits that would remain in the LLP fixed gear cod fishery as proposed. Like most businesses, most commercial vessels fishing out of Kodiak and other coastal communities regularly adapt to a changing marketplace by diversifying -- in this case, by harvesting -- more than one species of fish throughout the year. Permanently removing 70% of the cod permits from the Gulf of Alaska cod fishery begs the question: How would this affect fishermen needing to diversify their business, and how would this ultimately affect the economies of Kodiak and coastal communities in the Central and Western Gulf of Alaska? The sheer number of permits that would be removed from the cod fishery under the LLP proposal would significantly reduce future fishing opportunities in our back yard. This gives us pause. Could substantially less access to the cod fishery result in less boats gearing up for the season, less boats delivering their catches to fish processing plants in Kodiak, and less boats providing fishing opportunities for young people wanting to participate in the industry that is the mainstay of our economy? Could the proposed removal of permits result in an out - migration of Kodiak residents? Could less access to the cod fishery make it significantly more difficult for Kodiak fishermen to diversify their fishing business and more difficult for the future fishermen of Kodiak and the coastal communities of the Central and Western Gulf of Alaska to make a living at sea? We as policy makers for Kodiak Island do not know the answers to these questions and are concerned that haste in moving this program forward will damage the economic viability of our community. Thus, it is our responsibility to seek answers to questions concerning the socio- economic impacts of this permit reduction proposal. As you know, Mr. Secretary, this proposal did not arise from an existing biological crisis in the cod fishery. We believe, then, that careful consideration should be given to Kodiak, a major fishing port, and its neighboring coastal communities before signing into law a fisheries program of such magnitude as this cod permit reduction proposal. Therefore, we respectfully urge you to ignore the sense of urgency and emotional rhetoric that typically surrounds fishing allocation issues such as this one and, instead, make sure the time is taken to study the full impact of the LLP permit reduction proposal on Kodiak and the coastal communities of the Central and Western Gulf of Alaska. We ask you to seek answers on our behalf, Mr. Secretary, by sending this LLP proposal back to the NPFMC for a socio- economic impact study before it is adopted. In doing so, we will we be assured that the Department of Commerce has done its best to ensure Kodiak and the coastal communities of the Central and Western Gulf of Alaska remain vibrant, healthy, prosperous fishing communities. Thank you for your consideration, Sincerely, KIB Jerome Selby, Mayor, Kodiak Island Borough Members, Kodiak Island Borough Assembly United Fishermen's Marketing Association, Inc. PO Box 2917, Kodiak, AK 99615 Tel: 907 - 486 -3453; fax: 907 - 486 -8364 May 28, 2009 Dear Mayor Selby and Members of the Assembly, t(ODLYK ISLAND BOROUGH CLE CO ASSEMBLY : MANAGER v OTHER Re: Letter Proposed By MB Assembly Member Susan Jeffrey To U.S. Secretary of Commerce On The April 2009 NPFMC Action on GOA Fixed Gear Recency Endorsements We respectfully submit the following comments as you consider the letter that has been proposed by KIB Assembly member Susan Jeffrey to be sent to the U.S. Secretary of Commerce (Secretary) objecting to the recent April 2004 action by the North Pacific Fishery Management Council (Council) recommending the implementation of "Endorsements" in the Gulf of Alaska (GOA) fixed gear p. cod fisheries ( "GOA Fixed Gear Endorsements "). The motion that the Council adopted on this issue ( "April 3, 2009- Anchorage, Alaska North Pacific Fishery Management Council Motion- Final Action") is found at <http: / /www.fakr.noaa.gov /npfmc /current issues/ pcod/ FixedGearRecencyMotion409.pdf>. The documentation that largely provided the Council with a compilation and analysis of the data and the social and economic issues and impacts of the Alternatives and Options that were available to the Council to address the significant problems that exist in the GOA fixed gear p. cod fishery is entitled "PUBLIC REVIEW DRAFT; ENVIRONMENTAL ASSESSMENT/REGULATORY IMPACT REVIEW/INITIAL REGULATORY FLEXIBILITY ANALYSIS for a Proposed Amendment to the Fishery Management Plan for Groundfish of the GOA Management Area to ADD PACIFIC COD ENDORSEMENTS TO WESTERN AND CENTRAL GOA FIXED GEAR LLP; March 3, 2009" ( "EA/RIR/IRFA ", 129 pages), and is found at < http: / /www.fakr.noaa.gov /npfmc /current issues /pcod/fixedgearrecency309.pdf >. The subject Council action is based on complex and multidimensional informational and analytical elements that are complex, intricate, data - intense and difficult. We respectfully recommend, prior to taking action on the letter that is proposed by Assembly member Jeffrey, that it is essential for Assembly members to have made a sincere and thorough effort to review and understand the details of the Council action on GOA Fixed Gear Endorsements, including the actual elements of the Motion that the Council adopted on this issue, the associated EA/RIR/IRFA, and the other analytical and data intense informational background of such action. We would like to point out a few reference points that form the basis of our perspectives on the recent Council action on GOA Fixed Gear Endorsements: 1. The License Limitation Permits (LLPs) that were the subject of the recent Council action were determined and effectively awarded in 1995. These LLPs were based on (1) a General Qualification Period (GQP) that reached back to 1988 history (21 years ago), (2) an Endorsement Qualification Period (EQP) that reached back to 1992 (17 years ago), and (3) minimal qualification and landings criteria. Therefore, the LLPs that were the subject of the recent April 2009 Council action were Page 1 of 3 OFFICE IED TO: MAYOR based on Council action in 1995, and were created as a result of history that essentially occurred between 21 and 19 years ago. The subject Council action used this pool of LLPs to establish qualification criteria that is generally similar to qualification criteria that is used to establish License Limitation (i.e., Limited Entry Permits) in the Alaska salmon, crab, herring and other fisheries. The GOA p. cod fishery has been operating under the LLP management regime for 9 years. 2. There were approximately 883 fixed gear catcher vessel LLPs issued for the Central GOA (CGOA). 702 of these CGOA LLPs were issues for use on vessels <60 LOA. 3. The 10 metric ton (mt) "threshold" that the Council adopted for <60' vessels requires that a <60' vessel must have delivered approximately 22,040 pounds over a 7 year period; this amounts to an approximate average landing of 3,149 lbs. per year over a 7 year period. At a theoretical average price per pound of $.35 per pound, the approximate value of 22,040 lbs over a 7 -year period is $7,714.00, or, an approximate average value of $1,102.00 per year over a 7 -year period. We believe, given the circumstances that exist in the CGOA fixed gear p. cod fishery, that an approximate average annual catch of 3,149 lbs. per year over a 7 year period, or an approximate average annual landed value of $1,102.00 per year over a 7 year period, is a lenient and reasonable threshold. 4. The 50 metric ton (mt) "threshold" that the Council adopted for >60' vessels requires that a >60' vessel must have delivered approximately 110,200 pounds over a 7 year period; this amounts to an approximate average landing of 15,743 lbs. per year over a 7 year period. At a theoretical average price per pound of $.35 per pound, the approximate value of 110,200 lbs over a 7 -year period is $38,570.00, or, an approximate average annual value of $5,510.00 per year over a 7 -year period. We believe, given the circumstances that exist in the CGOA fixed gear p. cod fishery, that an approximate average annual catch of 15,743 lbs. per year over a 7 year period, or an approximate average annual landed value of $5,510.00 per year over a 7 year period, is a lenient and reasonable threshold. 5. 25% of the entire federal Total Allowable Catch (TAC) is reserved for a "State Waters Fishery" that is available only to jig gear and pot gear (the "State Waters Fishery" harvest occurs within State of Alaska waters, and is exclusively managed by the State of Alaska; the harvest that occurs in the "State Waters Fishery" is different from, and in addition to, the harvest that occurs in the "Parallel Waters Federal Fishery", and the harvest that occurs in the "Federal Waters Federal Fishery"). 6. A significant portion of the 75% of the federal TAC that is not reserved for the "State Waters Fishery" is taken in the "Parallel Waters Federal Fishery" (the "Parallel Waters Federal Fishery" occurs within State of Alaska Waters during the "Federal Fishery"; the harvest that occurs in the "Parallel Waters Federal Fishery" is different from, and in addition to, the harvest that occurs within State of Alaska Waters during the "State Waters Fishery", and the harvest that occurs in the "Federal Waters Federal Fishery"). 7. Harvesters who wish to harvest GOA p. cod with fixed gear in the "State Waters Fishery" and in the "Parallel Waters Federal Fishery" are not restricted from doing so by the subject Council action. The "State Waters Fishery" and the "Parallel Waters Federal Fishery" represent a significant quantity of p. cod that is available to harvesters who do not meet the minimal and reasonable qualification criteria that were established by the subject Council action. 8. Harvesters who wish to harvest GOA p. cod with jig gear in the "State Waters Fishery", in the "Parallel Waters Federal Fishery" and in the "Federal Waters Federal Fishery" are not restricted at Page 2 of 3 all from doing so by the subject Council action, and are exempt from the minimal and reasonable qualification criteria that were established by the subject Council action. 9. Increasing the pool of LLPs in the GOA fixed gear p. cod fishery does not guarantee that more Kodiak harvesters will participate in this fishery. In fact, Kodiak harvesters are likely to continue to be disadvantaged and displaced by non - Kodiak harvesters if the Council action is delayed. The EA/RIR/IRFA for the Council action on GOA Fixed Gear Endorsements was required by the National Environmental Policy Act (NEPA) and other federal law. The EA/RIR/IRFA for the subject action represents a respectable quality work product and analysis that largely identifies the broad and diverse range of social, cultural and economic impacts, effects, considerations and issues that are central and relevant to the Council action on GOA Fixed Gear Endorsements. This document has undergone intense scrutiny from the public, federal agencies, state agencies, stakeholders and others during the years that it has been under development. It would be helpful for the Assembly to point out any errors, discrepancies or shortcomings that you may identify in the social and economic analyses, in the data, in the Alternatives and Options that were available to the Council, or in other elements of the subject EA/RIR/IRFA. We understand and respect that members of the public may not agree with the Council decision on GOA Fixed Gear Endorsements. We further understand and respect that the Assembly may choose to submit comments in opposition to, or in support of, any Council action. While we do not necessarily agree with all elements of the subject Council action on GOA Fixed Gear Endorsements, on balance, we conclude that such action is (1) justified, warranted and reasonable, and (2) supported by (a) the economic and social analyses that formed the basis of the subject Council action, (b) the circumstances that have been developing over many years, that are currently evident, and that portend to worsen in the GOA fixed gear p. cod fishery, (c) the obvious, proven and ongoing degradation of the economic, social and cultural underpinnings and stability of Kodiak and other Alaskan coastal community residents, fishermen, stakeholders, support businesses and others as a result of such circumstances, (d) the proven absence of other reasonable or realistic solutions to address such circumstances, and (e) the public testimony that has been submitted to the Council in past years on this matter. We respect and appreciate the concern, sincerity and intentions of Assembly member Susan Jeffrey with respect to the letter and associated list of issues that she has proposed. Nevertheless, we respectfully submit that a letter to the Secretary that follows the arguments that have been proposed by Assembly member Jeffrey is not in the best interest of the Kodiak community, the economic, social and cultural underpinnings and stability of Kodiak, the Kodiak citizenry, or the fishermen, processing sector employees, stakeholders, support businesses and others that rely on a healthy fishery, and, specifically, on a healthy Kodiak based fixed gear p. cod fleet. Thank you for your consideration of our comments with respect to this issue. Sincerely, Jeffrey R. Stephan Page 3 of 3 Jessica Kilborn Subject: All, Jerry Bongen 907 - 486 -6245 hm 702 - 308 -1654 cell FW: Please make pap& From: Jerry Bongen [mailto:jbongen @mac.com] Sent: Thursday, May 28, 2009 8:44 AM To: scokinc @ak.net; jnifulp @gci.net; chrislynch @acsalaska.net; jerome .selby @assembly.kodiakak.us; Rick Gifford Subject: If you have any concerns, comments, or questions, please contact me. City and Borough Letter to Secretary of Commerce t`)(AK ISLAND BOROUGH CI,k RRK'S OFFICE COPE ru: MAYOR A OTHER 1. Letter to Secretary of Commerce was not vetted thru KFAC. Many active participants in cod fishery are not aware of City and Borough intent to send a letter to Secretary of Commerce. 2. No specifics on what City and Borough want analyzed. Cod Recency Action analysis contains economic analysis of the Action. The analysis does an extensive social / economic review of the KIB villages which resulted in 21 CGOA licenses being allocated to KIB villages. City of Kodiak residents will receive more fixed gear licenses endorsements than any other community in the GOA. 3. 2009 "A" season average pot boat gross $42,000, average crew share $2,300. Cod fishery lasted 27 days. 4. Action does not consolidate # of active participants. Like salmon and herring limited entry the Cod Recency Action set minimum landing requirements for participation. Action does not award ownership of the resource to participants, only the right to participate. 5. Action provides for increase of 200% over # of active participants. ( Includes endorsements awarded to CQE communities. ) 6. Action provides better and much needed tools for addressing sustainability, race for fish, bycatch, and ESA issues. 7. Provides modest means for stabilizing the P. cod fishery. Look to New England area where tools such as trip limits, weekly catch limits, and days fished limits have had significant adverse economic impacts on the fishing industry. 8. The pot cod fishery is not an entry level fishery. The cost of entry includes significant investments in gear and vessel. A range of investment in vessel and gear range from $200,000 to $2,000,000. Typically new entrant vessels are from out of the state of Alaska who have access to large amounts of capital. 9. Jig fishery component of the Cod Recency Action provides entry level opportunities. The jig fishery component is truely an entry level oppotunity - low capital to enter, Alaska based fishery, slow paced fishery. 10. Vast majority of the 883 groundfish licenses were generated through required landing of P. cod as bycatch in other directed fisheries. Licenses were generated without directly participating in the P. cod fishery. License holders have had 7 years to become active 1 in the p. cod fishery, but have not. 11. The Magnuson- Stevens Fishery Conservation and Management Act requires Councils to consider ( for allocation) current and historical harvests, employment in the harvesting and processing sectors, investments in, and dependancy upon, and the current and historical participation of fishing communities. 12. In April of 2008, a technical report submitted to Congress by NOAA Fisheries on behalf of the Secretary, concluded that the GOA Pacific cod fisheries were overcapacity based on the 2004 performance of the fishery. 13. Bullets for letter to Secretary contain significant inaccuracies. Nova Javier From: Rick Gifford Sent: Thursday, May 28, 2009 2:48 PM To: Nova Javier Subject: FW: FYI Rick Gifford Borough Manager Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 Phone: 907 - 486 -9301 Fax: 907 - 486 -9374 Email: rgiffordPkodiakak.us Web site: http: / /www.kodiakak.us PUBLIC RECORDS LAW DISCLOSURE: This e-mail and responses to this e-mail are subject to provisions of the Alaska Statutes and may be made available to the public upon request. Original Message From: Jerry Bongen [mailto:jbongen@mac.com] Sent: Thursday, May 28, 2009 2:23 PM To: scokinc @ak.net; jnifulp@gci.net; krd @ak.net; jfriend @alaska.com; chrislynch @acsalaska.net; jerome.selby @assembly.kodiakak.us Cc: Rick Gifford Subject: All, I have a correction to make on bullet #5. The number of pot endorsed licenses generated by the Cod Recency Action is an approximate increase of 100% or double the the number of active participants. Sorry for the mistake. Jerry Bongen 1 May 28, 2009 Dear Members of the Borough Assembly: Sincerely, Kristine Harder Box 1706 1124 E. Rezanof Kodiak, AK 99615 486 - 3448/723 -8095 KODIAK ISLAND BOROUGH CLERK'S FFICE COP D TO: ASSEMBLY MAYOR V , MANAGER OTHER :4 epv ,oz itcyt Skae p-•60•5 t - Arw I'm sorry that a prior commitment will keep me from attending the meeting tonight. Although I was raised in Kodiak and visited yearly since moving away, three years ago I began spending half my time here. I was shocked and horrified when I realized how Kodiak's economy has faltered, and learned of the loss of jobs due to privatization of the industry. I simply did not understand how the town could allow this to happen. Because I live in SE Alaska the other half of the year, I have watched how other communities deal with hot button issues. It isn't ever easy, yet if a town chooses to stand up for the cause that does the greatest good for the greatest number of people, that is the best you can do. Imagine if one day processors decided to ship their fish to Sand Point plants for processing. Perhaps they were going to save a lot of money by consolidating their plants. Wouldn't the town speak up and protest the loss of jobs for our cannery workers? Wouldn't we be appalled and concerned and fight to keep their jobs here? Yet our city leaders only wrote a letter with weak caveats when rationalization first reared its ugly head. Perhaps they thought the issue was "too complicated" and it was easier to let the lobbyists break down the issues more simply. Unfortunately the people who stood to benefit the most are those who have the money to hire lobbyists, and buy the plane tickets and hotel rooms to attend week long NPFMC meetings. No matter what those same individuals may tell you, there is a growing body of research proving that rationalization is a lazy form of fisheries management with steep economic casualties for coastal communities. (See "Enclosing the Fisheries: People, Places & Power" by Carothers and Lowe.) I would like to strongly encourage each of you to read the attached paper by Dr. Bromley. Although it may be difficult academic reading in some places: if a ma tertia challenged person (such as me) can digest it, I'm sure you can as well. I urge you to pu a stop to the continuance of irrational fisheries management, and correct the wrongs that happened in the past. Jessica Kilborn From: Nova Javier Sent: Wednesday, May 27, 2009 3:38 PM To: Rick Gifford Subject: FW: Letter on LLP Recency We totally oppose the political bodies getting involved in this matter. 1 i:ODIAK ISLAND BOROUGH CLERK'S FFICE COPI TO: ASSEMBLY MAYOR MANAGER V OTHER MAY 2 2009 �J From: pomega @gci.net [mailto:pomega @gci.net] Sent: Thursday, May 21, 2009 4:02 PM To: pat.branson @assembly.kodiakak.us; jerrol .friend @assembly.kodiakak.us; judy.fulp @assembly.kodiakak.us; sue.jeffrey @assembly.kodiakak.us; david .kaplan @assembly.kodiakak.us; chris .lynch @assembly.kodiakak.us; louise.stutes @assembly.kodiakak.us; Nova Javier Subject: Letter on LLP Recency My name is Chris Holland. My husband Ken and I own and operate our 72ft fishing vessel POINT OMEGA exclusively out of Kodiak. We live in Kodiak and our fish come across the docks here and the borough collects fish tax on our deliveries. We live in Kodiak and our kids and their kids as well as our crew lives in Kodiak. We do our shipyard work here and we use the businesses in town to maintain and keep our operation afloat. We are totally dependent on our fishing efforts for one hundred percent of our income. It has come to our attention that while we were away on a fishing trip the Borough Assembly has brought up a joint City / Borough letter being written to the Secretary of Commerce about the recent action at the council that took on fixed gear LLP recency. We have been fishing cod with pots out of Kodiak since 1987; this fishery makes up about a third of our yearly fishing income. This year the Federal "A" season was just about as short as anytime in our history of cod fishing. We figured that the average gross for a cod pot boat this year was about $37,000 and that is approximately $2100.00 for a crewman. Since the cod season was short and we also had a short State water cod fishery that meant our next fishery wasn't until mid March when we could do IFQ halibut and I don't know about you but when your paycheck is only a couple of thousand bucks and it has to last you for several months you might find yourself way behind on the rent by the time you get back to fishing. The price was down and the effort was up and it was not a good combination during unsettled times. We have been going to the NPFMC meeting for the lasts several years because of the problems we have been seeing in the cod fishery around Kodiak. We needed to have some sort of stabilization in this fishery that we have long term dependence on. Finally we have a sort of compromise position that will reduce the number of LLP's in the GOA fishery. It sounds like a big reduction when you use the numbers in your bullet point letter (1,147 boats down to 360 boats) but you need to consider that this is not a rationalization like what happened in the Bering Sea where 250 boats actually fished and there are only maybe 90 left. Here the boats aren't going away unless they are already gone; they are just doing other things and have no dependence on cod. Of the 360 boats that are left only about a third of them participate and a goodly number of those only started when they heard that there was a chance that they might not get an endorsement. There are still way more permits than the fishery can handle. For people like us who are dependent on cod this is a blow to our income and if you promote leaving this a wide open entry fishery because you some how think it is a social injustice, then you are really saying lets just destabilize this fishery until the people who are dependent on it can go broke with everyone else and your tax base is not going to look so good around here. If you are asking for another costly study to be done then I wonder who's pocket you are planning to take it out of as ours is being tapped pretty heavily already and in a down turn in the economy like we are in right now I don't think we can afford it. If you do have a study done then it needs to be carefully thought through so that we get meaningful information and not just guesstimates out of it. Please don't get in the middle of a fisheries fight or muddy up the waters for those of us who have had to spend our own money and time to try and keep our business in Kodiak viable during these changing times. I might add that you have the KFAC group and if they can't come to a consensus then maybe it isn't a matter for the borough. There is a 129 page document that the NPFMC has on this issue and probably unless you have time for all your members to read and understand this issue it might not be fair for you to get into it. Thanks for taking the time to listen to our concerns and for taking on the unenviable position of being an elected official. 2 RE: C -1 GOA Groundfish Management — Revision of License Limitation Program Final action: Fixed Gear recency to add P.Cod endorsement to WGOA & CGOA licenses. Public Comment of: Walter F. Sargent, Jr. F/V Major Kodiak, AK 99615 192nd Plenary Session North Pacific Fishery Management Council April 1 — April 7, 2009 Hilton Hotel — Anchorage, Alaska For the Official Record Mr. Secretary, Chairman Olson & NPFMC Council Members: My name is Walter Sargent of Kodiak, and I have been fishing in the Gulf of Alaska since before statehood. I hold LLPs for Southeastern Outside, GOA, and the Western GOA. I am opposed to the removal of LLPs and to the implementation of P.Cod endorsement requirements. In some areas, I've held LLPs since their inception and in other areas have purchased them. Like all of my licenses for fishing privileges, I consider my LLPs to be part of my legacy in Alaskan fisheries. When earned or purchased, an LLP is an investment backed by sound business reasoning — and it is absurd to have them arbitrarily removed by the Council. Fishermen need the operational options that they provide, in order to move from area -to -area according to operating and seasonal schedules. To have these privileges deliberately removed or restricted in order to create more super - concentrated, privatized and tradable assets will simply make for more of the same economic hindrances and problems of other irrational management schemes this Council has already erred in creating. So far, it is clear that the continued consolidation of our fisheries has not been good for coastal communities like King Cove, Sand Point, and even Dutch Harbor — where many small businesses have closed. Further consolidation will be no different in the harms it will bring to GOA communities. And no different in the fact that it only hurts Alaska — because more consolidation will mean more revenue flight, as there is no reason GOA privatization will be any different. Individual fishermen already share a responsibility for the resource, and they do not need to be privatized to make good stewardship and management possible. Just because a person has fished r' one area for a long time is not a reason for an assignment of ownership rights – it still remains a privilege only. And that is a privilege which must be maintained for future generations, along with the ability for fishermen to become more innovative and efficient of their own choice. Contrary to those goals, the Purpose and Need Statement clearly states "the intent of the proposed amendment is to prevent the future entry or re -entry of latent fixed gear groundfish capacity that has not been utilized in recent years into the Pacific cod fisheries, and to preserve the traditional vessel operational efficiencies within the fisheries." Likewise, that flawed and unsound Purpose and Need statement alludes to increased market value and intense competition. The Council is fully aware of dropping prices; and may I ask, "What is wrong with good old fashioned competition ?" I wholly disagree that "the possible future entry of latent effort and disproportionate vessel efficiency would have detrimental effects on LLP holders." As a long -term participant, I do not "need protection from those who have little or no recent history." As a long -term fishing business manager, I also do not need regulatory theories about how to attain efficiency forced upon my operations. Don't be fooled. Fewer options are not good for management or for free and open markets. And processor linkages are certain to be coming along with this. There are already enough hindrances to good business practices and too few opportunities. Alaskans need no more privatization of the Public Commons. Again, I oppose the removal of LLPs and this new ploy of requiring P.Cod endorsements as a means of attaining the same harmful consolidation. Walter F. Sargent; Jr. Submitted by fax to NPFMC: 907 - 271 -2817 — Tuesday, March 24, 2009 2:15 p.m. Borough Assembly Work Session May 14, 2009 Agenda Item: Letter to the Secretary of Commerce re: Gulf of Alaska LLP cod endorsement Recency •The North Pacific Fishery Management Council took action at its April meeting that reduces the total number of longline and pot cod Limited License Permit (LLP) holders in the GOA from 1,147 boats to about 360. •Roughly 790 LLP holders will be removed from the cod fishery because they did not fish cod during the qualifying years established by the Council. The majority of the LLP holders removed from the cod fishery, about 600, are active in other Gulf of Alaska fisheries and most of them are Alaska fishermen. •The federal cod fishery in the Gulf of Alaska is already a limited entry fishery. The Council's April decision significantly reduces the number of participants in the GOA limited entry cod fishery by 70 %, creating a nearly exclusive cod fishery for 360 longline and pot cod boat owners. •Most commercial fishing vessels in Kodiak, like most businesses, regularly adapt to a changing marketplace by diversifying -- in this case, by harvesting -- more than one species of fish throughout the year. By permanently removing the ability of nearly 790 LLP holders from the cod fishery, the Council will hinder the ability of a large class of Alaska commercial fishermen to diversify their businesses in the future. • The Gulf of Alaska cod fishery is very important to Kodiak and all GOA coastal communities. The permanent removal of 790 LLP holders from the cod fishery will close the GOA's healthy cod fishery to most new entries, which will hamper the ability of the next generation of Alaska fishermen to make a living at sea. • The Kodiak Fisheries Advisory Committee failed to reach consensus on LLP Cod Endorsement Recency. Thus, it is up to the Assembly to consider whether the North Pacific Fishery Management Council's action that dramatically reduces the cod fishing rights in the Gulf of Alaska by 70% is beneficial to the Kodiak Island Borough. • I think it is in Kodiak's best interest for the Borough Assembly to urge the Secretary of Commerce NOT to sign off on the LLP Recency recommendation from the North Pacific Fishery Management Council. Instead, the Assembly should request that the Secretary of Commerce require the NPFMC to conduct a thorough socio- economic impact study BEFORE establishing a management program that would significantly reduce the number of fishermen currently allowed to fish cod in the Gulf of Alaska. • In summary, I think the Assembly should resist the sense of urgency that typically surrounds fishing issues and, instead, take the time that is necessary to understand the full impact of LLP Recency on the Kodiak community and the smaller coastal communities in the Kodiak Island Borough. LLP Recency has not been triggered by a biological crisis in the cod fishery. There is no rush, no need to embrace a new fisheries management program without first analyzing the socio- economic impact on the future of the Kodiak Island Borough and its people. a so" 114.acA4) g„,fi cuattsit 47) 3 US. 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