A Statement of Strength - Coastal Villages · 2000 Year in Review – A Statement of Strength 1 Coastal Villages Region Fund is a thriving Community Development Quota organization.

A Statement

ofStrength

2000 Year in ReviewCoastal Villages Region Fund

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Coastal Villages Region Fund is a community development quota

organization, 20 communities strong.

Hooper BayScammon Bay

Chevak

TununakToksook Bay

Newtok

Mekoryuk

Nightmute

ChefornakKipnuk

Kwigillingok

Goodnews BayPlatinum

Quinhagak

Kongiganak

Eek

Tuntutuliak

OscarvilleNapakiakNapaskiak


2000 Year in Review – A Statement of Strength 1

Coastal Villages Region Fund is a thriving Community Development Quota organization.

We are one of six western Alaska groups guaranteed a share of the rich Bering Sea fisherythrough the unique CDQ program.

CVRF is a membership organization, twenty communities strong.

We are paid a royalty fee for our quota shares by industry partners who harvest the fish.

Royalty fees and our own purposeful investments fund the many economic and humanresource development programs being delivered today in the CVRF region.

Extracting a benefit from abundant offshore fisheries for nearby coastal communities is theheart and soul of the CDQ program.

A Statement of Strength

Elsie Chanar, CVS, Toksook Bay

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2 Coastal Villages Region Fund



Dedication

The 2000 Year in Review is dedicated to the people of theCoastal Villages region who have been patient with and supportive of the Coastal Villages Region Fund Board andstaff as we worked hard to become a key player in the BeringSea fisheries.

This important goal has now been achieved. Your supporthelped make it happen. CVRF’s new prominence in the industry, investment success, and investment protection isall for the single purpose of benefiting our membership.

Thank you for letting CVRF be your CDQ programrepresentative.

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Our PurposeTo be successful in the fishing industry so that we can promote economic

development in the CVRF region.

Our VisionTo be a key player in the Bering Sea fisheries and human resource development

so that there is sustainable economic and commercial development of the localresources in the CVRF region.

How We Get There• 4-SITE Program• Bering Sea fisheries• Joint ventures with fishing companies• Community development projects

2000 Coastal Villages Region Fund Board of DirectorsBack row, left to right: Clifford Kaganak, Sr., Oscar Wassillie, Paul Tulik,Simeon John, Abraham David, Edgar Hoelscher, Peter Joseph, Peter Boyscout,Ignati Jacob, Fritz Willie; Front row, left to right: Fred K. Phillip, Peter John,Henry Williams, Carl Dock, Wassilie Bavilla, Andy Charlie, Sr., Steven White,Charlie Chingliak, John Phillip, Sr. (Not pictured, Carl Maxie, Sr.)

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In the context of an organization, "soul" is something to which we contribute ourown meaning. Meaning created through our values. The most successful strategiesare essentially sets of values. At Coastal Villages, our core values provide an ethicalfoundation for the work of the organization. They provide direction and inspire commitment.

Our Core ValuesPositive Leadership

To be successful, Coastal Villages' leadershiphas faced two difficult tasks. First, in order forthe organization to thrive, CV has had to manage both stability and change. To knowwhen to reinforce the routine and when toencourage innovation.

Second, employees want to be both effectiveas individuals and to find meaning in their livesat work. Our positive leadership has navigatedCoastal Villages through competing priorities andaccelerated expectations to achieve organizationalviability and encourage employee contribution.

soulSoul of Success

Top left: Simeon John (Toksook Bay), CVRF Board Member Top right: Wassilie Bavilla (Quinhagak), CVRF Board Member Bottom Right: J.B. Crow (Bethel) ©

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soul of su


Maximum Return on AllocationThis is the starting point. The challenge

of balancing our efforts in which neither the individual village nor the corporationdominates, and which both the village and the organization view themselves as part of abigger whole. It is all about being responsiblefor profitable relationships within industrypartnerships, as well as accountable for visiblebenefits to the communities.

Protecting Our Way of LifeOur culture helps us to understand and

appreciate the past and has the ability to bringmeaning to the present. It reminds us of what isessential and relevant based on traditional values.

Top: At sea processorworking on Pollock fillets.Bottom: Warren Jones,CVS Salmon OperationsManager and John Henry(Quinhagak)


success


TeamworkMeeting today’s challenges cannot be done

by any one person single-handedly. CoastalVillages works to develop a community ofpeople who willingly provide their talents andinsights to address increasingly complex issues.

Respect for and Support of the People in the Region

The importance of the work we do is only asgreat as our connection to our members. Thelevel of commitment and loyalty of all the people in our villages in large part determinesthe effectiveness of our strategy. Answers residein all of us, to benefit all of us.

Top: CVRF Board MembersSimeon John (Toksook Bay)and Howard Amos (Mekoryuk)with Mary Oslin (Anchorage),CVRF Staff Bottom: Jolene John(Anchorage) CVRF Staff withSteven White and SimeonJohn, CVRF Board Members


1 Coastal Villages Region



Fishing Investments Profit CVRFCVRF’s bold investment in American Seafoods, LP completed in January, 2000 was

a major accomplishment this year, making it possible to achieve our goal of becominga key player in the Bering Sea fisheries.

Provisions in the American Fisheries Act required foreign ownership to divest itselfof 75% of American Seafoods, opening the door for Coastal Villages to first purchase20% of American Seafoods and another 2% in October. American Seafoods is thelargest offshore fisheries company in the Bering Sea, and so at the 22% level, CoastalVillages became the CDQ group with the largest stake in the Bering Sea fisheries.

The important American Seafoods investment met another CVRF goal of bringingthe value from the BeringSea fisheries into theCVRF region. Over time,distributions from AmericanSeafoods operations willprovide funding to create aself-sustaining fisherieseconomy in CVRF membercommunities.

heartThe Heart of the Matter

Top left: Eric Phillip (Kongiganak)Top right: Pollock ProcessorBottom : American Seafoods CompanyFactory Trawler



Other FisheriesCVRF’s other Bering Sea coastal, nearshore,

and in-river fisheries are at a mix of strong andweak levels. Bering Sea pollock has shownsteady growth, and harvests are up. But theKuskokwim River salmon fishery experiencedanother disastrous season, and summer 2000harvests were down.

In the fisheries that are strong, the industryis doing well. American Seafoods, which harvests pollock and is owned 22% by CoastalVillages, had a very successful year. Earningswere greater than forecasted. For Pacific cod,Aleutian Islands sablefish, and opilio and redking crab, our partners had good, if not recordbreaking seasons. In Kuskokwim Bay, thesalmon fishery experienced an average year,

heart of th

Top: Adrian Kailukiak (Toksook Bay) CVSHalibut PlantMiddle: Surimi being off loadedBottom: John Sharp(Quinhagak)



but ex-vessel prices to fishermen went lower ascompetition from foreign farm raised salmoncontinued to eat into traditional Alaskansalmon markets. Halibut remains stable, andstrong markets supported the highest pricespaid to fishermen in recent years.

CVRF keeps up with new developments that may threaten its success in the fishingindustry. In the pollock fishery, threats includethe protection of Steller sea lion critical habitat, bycatch of salmon in the trawl fisheries; and the surimi market in Japan. Inthe crab fishery, the Alaska Department ofFish and Game has warned that two majorfisheries – Bristol Bay red king crab and opiliotanner crab – will be shut down due to lowabundance.

he matter

Top: Billy Lincoln Jr., CVS Toksook Bay PlantBottom: Bob Smith, CVSQuinhagak Salmon Plant



heartIn 2000, CVRF and partners successfully

kept up with the changes. Industry adjustedto new fishing areas with less fishing time, andswitched to different products for differentmarkets. In Japan, a slowed economy reduceddemand for surimi, but in Europe, the footand mouth disease problem caused anincreased demand for pollock, striking animportant balance.

Just as CVRF responds to changes in the fishing industry, we also respond to changingcircumstances within the region. For salmon,this means developing niche markets and value-added products. We cannot rely on thetraditional Japanese market to survive. For halibut, farmed halibut is coming, and whilenot yet a problem, it could be. To survive, and succeed in the fishing industry, we must look to the future and make neededadjustments today.

Top: Gregory Tom, CVS Chefornak PlantBottom: Salmon Fishermen delivering to CVS tender



Plans Guide CVRFA Community Development Plan (CDP) is CVRF’s workplan for each CDQ

allocation period. It is a forward-looking document, prepared one year for use the nextyear, and describes what the company plans to do. The project and program ideascome from board members, member communities and the staff. A CDP requires several months to prepare and it is a unique feature of CDQ organizations.

CVRF’s 2000 CDP called for fishing industry investments that were satisfied withthe well-reported purchase of American Seafoods, the Ocean Prowler, and investmentsin our halibut and salmon plants.

In 2000, Ciunerkam Tangruarutii (CT)- “Looking Towards the Future”- a CVRFled planning effort, produced ideas for the2001-02 CDP. Included are eleven programsand twenty projects, covering current and proposed larger investments in the fishingindustry, human resources programs, outreach,CDQ quota and contract management, andadministration.

The 2001-02 CDP also supports infrastructuredevelopment, more employment opportunitiesin the region, starting up new businesses, andentering into agency partnerships to get morebenefit to communities than can be obtainedfrom CVRF alone.

mindThe Plan in Mind

Top: CVRF Leadership Team April 2000Bottom : John Amik and CVRF Board member Carl Dock (Kipnuk)



A new loan program for fishermen is a noteworthy project listed in the 2001 - 02 CDP.It is an example of how CVRF is using itsinvestments in the fishing industry, along withits own community grant program, to providedirect benefits to member communities.

Ciunerkam Tangruarutii –“Looking Towards the Future”

In 2000, CVRF’s major, long term planning initiative, Ciunerkam Tangruarutii(CT), "Looking Towards the Future," identified local priorities in our twenty member communities. Our effort wasstrengthened by the participation of localsteering committees.

Top: Phillip Kusayak(Newtok)Bottom: speaking, CVRFBoard member JohnPhillip Sr. (Kongiganak);seated, Julius Pleasant(Bethel) and CVRF Boardmember Steven White(Eek)

the plan inCVRF Text Pages.qxp 9/23/02 10:46 AM Page 14


At well-attended meetings, concerned residents shared their ideas of improving community life. This grassroots input, alongwith that of local leaders, identified prioritiesas they relate to community and economicdevelopment, health, safety, employment,training, elders, youth and technology. Later, at a large Funding Summit event, topcommunity priorities were detailed in fund-seeking proposals, and possible fundingsources were identified.

CT started with a plan. Its purpose, strategy,structure, people, process and timeline ofevents was developed by CVRF staff. Therewas a high expectation for communityaccountability and participation.

Bottom: Mike "Jack"Stewart (Goodnews Bay)

in mindCVRF Text Pages.qxp 9/23/02 10:46 AM Page 15

mind


Project sustainability was also an issue.CVRF staff prepared materials, traveled inteams to talk about the CDQ program, ledvisioning sessions, and listened.

CT shows CVRF’s commitment to provide benefits from the CDQ program to its members, to obtain community direction onits programs and priorities, and to have themanagement structure in place to be able todo a credible job.

Top: Patrick Cleveland(Eek) Bottom: Oscar Evon(Kwigillingok) center,with Funding SummitParticipants



bodyOur Body of Work

Subsidiaries and 4-SITE Are ActiveTwo thousand was a successful year for CVRF’s five subsidiary companies which

own all, or a portion of, Coastal Villages investments in the fishing industry.

In 2000, three new investments in American Seafoods, the Ocean Prowler and theArolik River Guiding Service proved highly successful, returning cash distributions tothe subsidiary based upon operations.

Three existing businesses, Coastal Villages Seafoods (CVS), the Silver Spray, and theOcean Harvester, also had successful years. Of the five subsidiaries, CVS has the mostvisibility within the CVRF region, as it hires employees, and buys and processes fish locally.

Coastal Villages Seafoods (CVS)CVS operates salmon and halibut plants in five communities. In 2000, the newest

halibut plant opened in Chefornak, joiningToksook Bay, Tununak, and Mekoryuk. A halibut operation was also added to the plant inQuinhagak. The halibut plants processed theentire Area 4E halibut quota of 273,000 pounds,nearly 100,000 pounds over what had ever beencaught and processed before. In Quinhagak,CVS purchased over 1.7 million pounds ofsalmon and processed over 500,000 pounds of iton site. The remainder was shipped to Bethelfor custom processing. Upgrades at theQuinhagak plant will allow future processing ofthe entire catch.Top: Staff model CVS styleBottom: Value adding at CVS Quinhagak Plant



our body o

Top: Ocean HarvesterBottom: Crab Pot Landing

Coastal Villages Pollock (CVP)CVP owns Coastal Villages’ 22% interest in

American Seafoods. CVP was created inJanuary 2000 to manage the AmericanSeafoods investment and monitor its operations.

Coastal Villages Longline (CVL)CVL was established in 1997 to own Coastal

Villages’ interest in the longline vessel, theOcean Harvester. CVL owns 45% of thiscatcher boat, which harvests halibut and sablefish in the Gulf of Alaska and Bering Sea.In 2000, CVL purchased a 20% interest in a second longline vessel, the Ocean Prowler.This vessel fishes primarily for Pacific cod inthe Bering Sea. In 2000, each vessel had successful fishing seasons.



y of work

Top: Bob Smith andJohn Henry ready toship out product, at CVS, QuinhagakBottom: Eric Phillip(Kongiganak) shows off catch

Coastal Villages Angler (CVA)CVA is a subsidiary created to own a 33%

interest in the Arolik River Guiding Service.Operation strengths are a managing partnerwith a long history in sport fish lodges andguiding, investment by the Quinhagak villagecorporation, and unparalleled sport fish valueson the Arolik River. Remarkably, this businessmade a profit in 2000, its first year of operation.

Coastal Villages Crab (CVC)CVC owns a 50% interest in a crab vessel,

the Silver Spray. The vessel also harvests Pacificcod using pots and processes the cod onboard.CVC primarily monitors vessel operations andassists in recruiting crew members for the crab and cod fisheries. In 2000, the SilverSpray was profitable despite continued lowabundance of crab.


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4-SITE Makes a DifferenceInvestments in people continued in 2000,

too. The 4-SITE program maintained serviceto our members as the centerpiece goal anddelivered benefits and opportunities in keyareas of scholarship, internship, training andemployment.

ScholarshipIn 2000, the Louis Bunyan Memorial

Scholarship (LBMS) committee awarded$62,716 to 39 students attending universities andvocational technical schools. More scholarshipswere awarded in 2000 as a result of an increase inapplicants responding to additional outreachefforts promoting the LBMS.

To show its commitment to education, the scholarship committee has increased the budget, and now offers funds at any time tothose seeking a GED certificate through theUniversity of Alaska - Fairbanks, KuskokwimCampus. For other applicants, funding deadlines of May 31 and October 31 apply.

CVRF encourages those who have been, orare, residents of member communities to seeksupport from the LBMS for education. Yourdevelopment efforts can lead to sustainableemployment in the future.

Top: Caroline Nevak, (Toksook Bay) recent scholarship recipient for Graphic Design.Bottom: Jimmy Larsen, Jr. (Chefornak) recent scholarship recipientfor Aviation


y of work


InternshipAn effective way to build work skills is

through an internship. In 2000, CVRF placed interns in positions including: HumanResources and Rural Recruiter with AmericanSeafoods; Administrative Assistant, HumanResources, and Personnel Assistant with IcicleSeafoods; Engineering and Deck Handapprentice with Westward Seafoods; andAdministrative Assistant in-house with CVRF.

CVRF’s ability to offer an in-house intern-ship at our Anchorage office is a new develop-ment in 2000, and speaks of our own growthand maturity. In the past, we sent interns toSeattle to work with partner companies.Offering another choice improves our program, and allows CVRF to be moreinvolved in an intern’s development and experience. We urge residents to start or continue their personal employment historywith an internship.

Top: Desiree Moses (Toksook Bay/Anchorage) former CorporateCommunications InternBottom: Mary Charlie-Smith (Toksook Bay/ Bethel) successful starof the 4-Site Program



Top: Bernard Murran(Hooper Bay) early inCVRF careerBottom: CVS Quinhagakfish grading operation

our body oTraining

CVRF is committed to staff developmentand training in the workforce to meet a grow-ing demand for employees created by our ownbusiness ventures. Training individuals forwork within the region at CVRF subsidiaryventures is a positive undertaking. It boostslocal employment and brings new skills intothe region. In 2000, CVRF for the first timebrought a group of key salmon and halibutplant workers into Anchorage for specializedproduction training.

CVRF promotes staff development to maximize internal talent in management and toassure top program delivery to our membercommunities. Staff development in 2000included: alcohol awareness, drug screening,participation in regional economic developmentefforts, workforce investment, customer servicerepresentation, accounting procedures, andhuman resource management.



Top: Jessica Bavilla and Tina Johnson – happy CVS, Quinhagak workersBottom: Warren William George Jones, CVS Salmon OperationsManager checks shipout

y of workEmployment

CVRF’s Employment Department had amake-over during 2000, but our purpose ofhiring people to work in the fishing industryremains unchanged. Gone are the coacheswho shared scholarship, internship, training,and employment information. They werereplaced by Rural Recruiters who focus on hiring seafood workers.

In 2000, CVRF helped 244 residents findwork in the fishing industry. They earned$944,000 in wages. CVRF’s halibut andsalmon plants have created new local employ-ment opportunities, and we have noticed agrowing trend of individuals choosing to workin the region, and not outside of it.

In 2000, Coaches and/or Rural Recruiters:attended LKSD’s Career Days and AFN’sHuman Resources Job Fair; organized andheld the 2nd Annual CVRF Recruitment Day;joined with the YK Delta Rapid ResponseTeam; assisted with Ciunerkam Tangruarutii;and taught Junior Achievement classes.


body


Community Economic DevelopmentCommunity economic development is an

ongoing effort in the Coastal Villages region aswe seek opportunities to improve the qualityof life for the benefit of our members. We seethe community helping itself, investing initself, involving community interests foundedon the development of a long-term plan andthe commitment of community resources.

For this purpose, CVRF’s EconomicDevelopment Department concentrated in2000 on completing the Chefornak HalibutProcessing Plant, preparing the Scammon BayAluminum Welding Shop proposal, start-upof the value-added operation of CoastalVillages Seafoods, LLC, and the on-goingdevelopment of the Regional Port and KipnukProcessing Plant proposals.

These economic development initiativeswere fueled by the energy, perserverance andthe belief of many that they would lead to positive community growth. Throughout 2000,Coastal Villages and local residents worked tocreate the foundation of a common vision toimprove the economies of families and theircommunities.

The core of our work comes to life whenmembers unite to make development happen.

Residents setting community priorities duringCiunerkam Tangruarutii process



spiritThe Spirit of Community

Unity Through Common PurposeCVRF seeks to create a sense of unity and connection, to bring many together for

one purpose. How do we bring life to our common purpose? How do we harness thestrengths and talents of our membership to work for the greater good of everyone? In 2000, CVRF sought a place within each community to touch the lives of people by reawakening the human spirit and revitalizing the communities throughcommunication, collaboration, and celebrations of unity.

CommunicationCVRF takes "talking the walk" very seriously. We find creative ways to exchange

information about the industry, the work of our organization and the interests of our members. CVRF’s multi-media communication approach reaches out to draw intoour circle of community a wide audience of residents, partners, and regional supporters.

We share ideas and activities through our quarterly newsletter, "Neqsurtet Nepiit.”Included are topics such as CDQ allocationnews, industry partnerships, village seafoodplants, new in-region businesses and profiles ofinterns, apprentices, staff and Board members.We sponsor and host a monthly television showon ARCS called “Alaska Rural Development2000.” Top left: CVRF Board Members John Phillip Sr., Steven White,Carl Dock, and Andy Charlie Sr.Top right: Colton and Tony Crow in high spiritsBottom: Students at a CT rally


spirit of co


It explores issues of regional concern and raises awareness on strategies being employedto address the challenges of rural development.In 2000, some of our shows highlighted theregional strategic planning effort, a fundingsummit connecting communities with govern-ment and private funding sources, and a discussion of Best Practices in community-basedeconomic and human resources development.

CollaborationCVRF strongly believes in creating

partnerships as a vital force in the successfuldevelopment of our region. There are new ideas about partnership and sharedresponsibility at the community level. It is anapproach meant to support active, adaptivecommunities.

Top Left: Moses Tulim(Chevak) CVRF staff,Patrick Tall (Chevak), andByron Ulak (ScammonBay) CVRF staff Bottom: Bosco Olson, Myron Naneng, Ole Lake, and Edgar Hoelscher, representatives of Hooper Bay


ommunity


Ciunerkam Tangruarutii (CT)- “LookingTowards the Future" - was an extensive CVRFoutreach initiative in 2000, and is a powerfulmodel of partnership and collaboration. Theinitiative was conducted in collaboration witha local steering committee to integrate valueidentification, project planning and communityinvolvement. It was pivotal in identifying theresidents’ priority interests in six communitydevelopment areas: employment, training andeducation; youth and elders; fisheries relatedprojects; safety and health; and informationtechnology. CVRF then facilitated a number ofCT follow up activities (such as the fundingsummit, and regional port feasibility study) tomaintain momentum for top communityprojects to move forward.

Top: Fred K. Phillip, 2000 CVRFBoard of Directors PresidentBottom: Elementary studentsengaged in Junior Achievementactivity


spirit of co


Top: John Sharp (Quinhagak)Bottom: Louie Johnson(Quinhagak) assists new CVS employee

Other Regional Initiatives

CVRF participates as a representative on theLocal Advisory Council of the WorkforceInvestment Board to identify employment,education, and training and economic development activities in the YK region.

AVCP and CVRF collaborate on a joint project to implement a community-baseddrug-screening program for CVRF and AVCPclients who are applying for positions in thefishing industry

Department of Labor and CVRF’s employ-ment staff work closely together to screen andrefer candidates to potential employers.


ommunity


CVRF staff is frequently asked to speak at DOL functions on the CVRF rural recruitment model and is working with theOffice of the Commissioner on a strategic plan.

The YK school districts continue to workwith CVRF to bring Junior Achievement ofAlaska classes to our communities. JuniorAchievement’s purpose is to educate andinspire young people to value free enterprise,business, and economics to improve the quality of their lives. In 2000, CVRF staffserved as classroom consultants in nine member communities, touching the lives ofhundreds of students.

CVRF is a key player and founding member of the regional leadership group guiding the design and development of theYuut Elitnaurviat, "The Peoples’ LearningCenter".

With the commitment of CVRF, regionalnon-profits, area school districts, theUniversity of Alaska, and the regional healthcorporation, Yuut Elitnaurviat, will realize avision of a regional alternative school andvocational training center.

Top: Cheryl Beaver and Stacy Atti feast on crab at CVRF potluck inKwigillingok.Bottom: CVRF Board member Peter Boyscout with fellow potluckguests.


spirit


CelebrationsRituals of passage, celebrations of achievement,

and ceremonies of healthy lifestyles are impor-tant threads that weave through the fiber ofour communities – they intertwine the joys,sorrows and challenges of our lives to create astrong foundation of support, determination,and hope for a better future.

In 2000, CVRF joined with the communitiesto celebrate seasons, graduations, sobriety, andcommunity partnership. We brought to thetable our CDQ harvest of fish and crab and acommitment to support community projectsand events that contribute to the well-being ofour membership.

Top: Mrs. Atti volunteers at potluckBottom: CVRF Board membersJohn Phillip Sr. (Kongiganak) andPeter Joseph (Tuntutuliak) diggingin at CVRF potluck


strength


Finances and People Shape CVRF’s FutureCoastal Villages Region Fund is operating from a position of strength and diversity.

In recent years, our important asset base has consistently doubled. Consolidatedassets show a steep climb on the growth curve, as shown below, and topped 26 million dollars at the end of 2000.

Coastal Villages sees many opportunities in the industry, and the asset base will continue to increase. However, such a significant doubling trend will be difficult tosustain as a growth objective. As the growth curve levels, the impressive asset foundationnow in place will serve us well. It is an excellent basis for sustained economic activityto generate cash needed to benefit CVRF member communities.

In 2000, another major focus was onfinancial stability through diversificationof CVRF’s income base.

Coastal Villages is moving away fromtotal dependence on the CDQ royalty as arevenue source. Our dependence on theBering Sea continues, but we are investingacross the sectors, and we are generatingvalue from different species, too.

Our Strength in Resources

Coastal Villages Region FundConsolidated Assets

30,000,000

25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

0

1996 1997 1998 1999 2000

Top: Moses Tulim (Chevak) CVRF staff


strength in


In 1999, more than 80% of our consolidatedrevenue came from royalties. This was reducedto 73% in 2000. Fully 17% of our consolidatedrevenue came from seafood sales in 2000, upfrom just over 9% in 1999. Seven percent ofCoastal Villages’ consolidated income in 2000came from Bering Sea investments comparedto 3% the year before.

Diversification is evident within the speciesas well. An investment in the Pacific Codindustry has allowed CVRF to supplementpollock, the main sector. The crab sector alsooffers an opportunity away from pollock.

The CVRF Board has worked tirelessly, andis enthusiastic about the financial growth ofthe company. The Board strongly supports acontinued focus on financial stability thatleads to sustainable development in our region.

Coastal Villages Region FundConsolidated 2000 Royalities

Pollock85.44%

Sable Fish0.18%Crab

7.75%

Halibut0.57%

Pacific Cod5.60% Multispecies

0.46%

Coastal Villages Region FundConsolidated 2000 Total Revenue

Equity inLLC

7%

Royalties73%

SeafoodSales

17%

Other3%

1,200,000

1,000,000

800,000

600,000

400,000

200,000

0

(200,000)1997 1998 1999 2000

Coastal Villages Region FundConsolidated Net Earnings from Equity Investments



n resourcesHuman Talent

CVRF knows that an organization’s mostvaluable resource is its intellectual capital: its employees. It is committed employees, not projections and controls, that make anorganization fast and flexible enough to maintain a competitive advantage.

In 2000, our employees met many challenges.There were new expectations about the work,and new ways of working together. CoastalVillages sought to infuse the changes with staff ’spersonal initiative, creativity and compassion todevelop a work environment that supportslearning and leadership at all levels.

As the task before CVRF continues to magnify,we will continue to support our employees todevelop their full talents. Talented individualswho give their all is Coastal Villages’ most valuableresource in its on-going discovery of greatness.

Top: Bernard Murran(Hooper Bay) CVRF staff Bottom: Jolene John(Anchorage) CVRF staff



Understanding Our Place

A Letter from the Executive DirectorCoastal Villages Region Fund’s consolidated net assets

topped 26 million dollars by the end of fiscal 2000, anamount more than double that of the previous year.Revenues increased by over 40% or more than 13.8 million dollars in 2000 compared to the 1999 level. Byvirtue of holding the largest control of quota by a CDQ

in the Bering Sea and the best investments in the industry, the outlook for thecoming year is even more exciting. Although it is easy to point to financialindicators to ground our picture of growth and maturity, there are other veryimportant indicators that show our understanding of our place in the industry,the CDQ program, and the region.

During the year 2000, every sector in the Alaska fishing industry held on fordear life in the face of a finding of jeopardy for the western stock of Steller sealions under the provisions of the Endangered Species Act. Although abundance of pollock and cod stocks were well documented at healthy levels,theories of nutritional deprivation and food depletion convinced a federaljudge to issue an injunction containing fishing measures that dramatically hindered the harvest of these otherwise healthy stocks. In response, theNational Marine Fisheries Service released a biological opinion that detailedmeasures that were even more restrictive on the fishing industry. While CoastalVillages also is concerned with the conservation of the sea lions, we firmlybelieve that the pollock and cod fisheries cannot be a significant cause of thedecline. Seeing the impacts of the injunction and the biological opinion on thefishing industry, Coastal Villages, together with many other industry members,worked hard to obtain short-term relief while the scientists continue to studythe problem. Coastal Villages was a key participant in obtaining the breathingroom necessary to continue fishing, focusing not only on the protection of ourown investments, but also the rest of the fishing interests in Alaska. Also at thistime, the Governor of Alaska appointed Coastal Villages to his Sea LionRestoration Team to further address the issue. This involvement with the otherfishing interests led Coastal Villages to be a founding member of the newMarine Conservation Alliance, a group of fishing interests agreeing to worktogether as one strong voice, rather than be only one of many arguing aboutwhat should be done to address this important conservation issue. We understand our place in this political arena both now and in the future.

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During a recent Coastal Villages Board meeting, comments by several BoardMembers reflect the trusting relationship between Board and the staff, butmore importantly, an understanding of the industry and the region. One gentleman, during a discussion of a lucrative investment, reminded his fellowdirectors that if Coastal Villages did not seize the opportunity, others would."Someone is going to make money.” Another gentleman observed that the rateof return of a potential investment could be high enough to overcome the lackof employment opportunities in the sector. "There are a lot of ways that it canindirectly benefit our region here,” he said. Steven White, our director fromEek, summarized the layers of regulation, the sector in question, the status ofthe negotiations, and how "this investment can bring funds to our programwith a low risk to our people and with low cost to this company." He demonstrates a complete understanding of the process of investing for the benefit of our communities. Several visioning sessions have facilitated theCoastal Villages Board’s understanding of our place in the fishing industry.They value the continued monitoring of our current partnerships, but alsovalue the careful fit of new partnerships into our investment mix.

As the largest producer of salmon and halibut in western Alaska, our involve-ment in the region as an investor and employer has brought us to the table withthe region’s largest entities. Coastal Villages has a balanced approach to the industry and to the region that has led to an effective connection between thetwo. We will continue to develop that understanding of our place in the region’seconomy for the season that we are planning for, and many seasons to come.

The meshing of old ideas to new creative ideas provides Coastal Villages theunique ability to utilize our position in the industry to bring benefits back toour communities. The staff and Board of Coastal Villages Region Fund havecome a long way in a short time, but we understand our place in the two worldsin which we operate. I consider it an honor to work for people who direct mebased on an experienced understanding of our place in the process of bringingbenefits to our communities.

C. Morgan CrowExecutive Director

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Simeon John, PresidentToksook Bay

Howard Amos, Vice-PresidentMekoryuk

Clifford Kaganak Sr., SecretaryScammon Bay

Wassilie Bavilla, TreasurerQuinhagak

Carl Dock, At Large Executive BoardKipnuk

Fritz Willie, At Large Executive BoardNapakiak

Steven White, At Large Executive BoardEek

Oscar WassillieChefornak

Peter BoyscoutChevak

Mike “Jack” StewartGoodnews Bay

Jolene NukusukHooper Bay

John Phillip Sr.Kongiganak

Fred PhillipKwigillingok

Helen KaganakNapaskiak

Peter JohnNewtok

Paul TulikNightmute

VacantOscarville

Henry WilliamsPlatinum

Peter JosephTuntutuliak

Andy CharlieTununak

2001 CVRF Board of Directors

Others who served on the board in 2000 included:Ignati Jacob- Oscarville, Charlie Chingliak – Goodnews Bay, Edward Fox – Platinum, Edgar Hoelscher- Hooper Bay, Carl Maxie, Sr.- Napaskiak, Abraham David - Mekoryuk


Corporate Headquarters711 H Street, Suite 200Anchorage, AK 99501907.278.5151 phone907.278.5150 fax

BethelBNC Complex, Suite 113P.O. Box 1166Bethel, AK 99559907.543.3813 phone907.543.3814 fax

ChevakP.O. Box 109Chevak, AK 99563907.858.7250 phone907.858.7692 fax

MekoryukP.O. Box 16Mekoryuk, AK 99630907.827.8141 phone907.827.8142 fax

Hooper BayP.O. Box 289Hooper Bay, AK 99604907.758.4330 phone907.758.4331 fax

Scammon BayP.O. Box 101Scammon Bay, AK 99662907.558.5523 phone907.558.5524 fax

Juneau204 N. Franklin Street, Suite 1Juneau, AK 99801907.586.2360 phone907.586.2331 fax

CVRF Offices


Coastal Villages Region Fund711 H Street, Suite 200Anchorage, AK 99501


A Statement of Strength - Coastal Villages · 2000 Year in Review – A Statement of Strength 1 Coastal Villages Region Fund is a thriving Community Development Quota organization.

Documents