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Economic Development and Advocacy for Southwest Alaska
September 2011  
Greetings!
Hello again and welcome to the latest monthly edition of SWAMC's e-newsletter for members and friends of the Southwest region. This month we'll explore salmon figures, a visit from the FCC Chairman, and say farewell to a longtime Board member. Make sure to note some of the relevant regional events and dates to remember at the end of this newsletter. Enjoy your September, and let us know if there's anything we can do for you, your community, or your business. Thanks for reading
Senator Begich and FCC Chairman Visit Southwest Alaska 
Begich FCC

Toward the end of August, Senator Begich and  FCC Chairman Julius Genachowski traveled to Dillingham and New Stuyahok to see first-hand the $88 million TERRA-SW project which will bring middle mile broadband service to 65 communities in Southwest Alaska. Along with the USDA, they were part of a ribbon cutting ceremony hosted by GCI to recognize the progress of the project thus far (ahead of schedule) and the significance it will have for the Bristol Bay region. The two also held a roundtable discussion in Anchorage with the Statewide Broadband Task Force to discuss the value high-speed broadband brings to medicine, education and the overall economy, especially in rural areas. Chairman Genachowski described how the group's goals fit into the broader nationwide goals of bringing broadband internet speeds to every American.

More Regarding Transportation Planning

Last month weDOT told you about the Department of Transportation and Public Facilities' plans for the Southwest Alaska Transportation Plan Update. An important aspect of future development in Southwest Alaska is federal funding, and the Statewide Transportation Improvement Program (STIP) is a document that outlines how the state plans to spend those funds. The new draft STIP for 2012-2015 is on the streets for public review, and the comment period closes September 18. You can view the STIP here. DOT is seeking comments from communities on specific projects, and according to the Department, "it is just as important to comment positively on projects that are in there, as well as note those that seem to be missing." There are four projects from House District 36 and six projects from District 37 in the current iteration of the STIP.  

Energy Awareness a Priority for October AKEE ad

Earlier this month, Governor Sean Parnell signed a proclamation recognizing October as Energy Awareness Month in Alaska. This action is but one step in the Administration's efforts to help Alaskans realize a 15% increase in energy efficiency over the next ten years, a goal that was set forth in HB306 (last year's State Energy Policy). Much like a wind turbine or a gallon of fuel, energy efficiency and conservation are important sources of heat and electricity; after all, the cheapest and most efficient barrel of oil is the one you don't use. However, before we start to implement measures to reduce our usage, it is important to know our starting point by becoming "energy aware."   

 

As we enter the fall season and winter fast approaches, cities as varied as Sitka, Fairbanks, Anchorage and others are taking steps to recognize the importance of energy awareness in their homes and businesses. If your community would like to encourage energy awareness and join others in making energy efficiency measures a priority, consider passing a resolution proclaiming October as Energy Awareness Month. It's Common $ense!     

Changes at the Aleutians East Borough
Over at the Aleutians East Borough, Beth Stewart finished her time as Natural Resources Director at the end of August. She was replaced by Ernest Weiss, who was the Borough's Community Development Coordinator for the past year. In addition to being a former City Manager of Pilot Point and Mayor of King Cove, Mr. Weiss is also a past Director of the SWAMC Board. SWAMC has already spotted Ernie at Steller Sea Lion BiOp review meetings and a House Fisheries Committee hearing on the proposed halibut allocation plan put forth by the National Marine Fisheries Service. We look forward to working with Ernie and the Borough on these and other important natural resource topics.
Fare Thee Well to a Long Time SWAMC Supporter kara
Speaking of changes, last month we learned that Kara Sandvik is leaving the SWAMC Board of Directors as she makes a move out of state. As a commercial banker with Wells Fargo, Kara has done business with Southwest Alaskans for many years and has been a friend to the region during her time on the Board, beginning her service to SWAMC in the early 1990's. The At-Large seat that she occupied will be up for election at SWAMC's Annual Membership Meeting next February in Anchorage. So long Kara, and thanks for your many wonderful years of contribution to the organization and region!

Southwest Alaska Monthly Indicator - 2011 Salmon Recap

Over the past few months salmon fisheries have been an important subject for the SWAMC region. Reports often aggregate statewide harvest into a single value; however, with thousands of permit holders and crew and an indirect impact on many more processing and service operators at the local level, the community value is very localized and holds vastly different perspectives. One scenario that will likely develop in post analysis of the 2011 salmon season is that the outstanding prices and a strong sockeye run in Cook Inlet and pinks in Southeast could be enough to distort the wider picture of weak runs in an otherwise healthy industry. The subjective assessment of run strength is too abstract to assign a definitive good or bad rating. Generally speaking, high prices ensured that most districts recorded acceptable value for the 2011 salmon season, while realizing lower than expected harvest numbers. Chignik stands out as the only district in the region to record stellar harvests, by subjective standards.

 

A more easily measurable analysis of run strength is comparing the forecast with the actual harvest. Accurately estimating actual run strength is not necessarily an indicator that a run will be considered good or bad, but it does have an effect on the expected earnings that the industry may plan for going into the season. As the chart below shows, the districts of Bristol Bay, The Alaska Peninsula (Area M) and Kodiak recorded actual harvests below the preseason forecasts, while Chignik harvests reached 178% of preseason forecast. Just as the Statewide aggregate picture can distort regional circumstances, aggregated data by district distorts the species harvests and especially the toils of individual fishermen. Chignik fared better than the all-species harvest alludes to, due to a strong sockeye run (high value) and below forecast pink salmon (lower value). Intercept fisheries of the Alaska Peninsula and Kodiak also likely benefited from the abundant sockeye traveling to Chignik, distorting potential weakness in those districts local stock. Pinks also failed to materialize in Kodiak and the Southern Alaska Peninsula, at 56% and 50% of forecast, respectively. In the Northern Alaska Peninsula sockeye harvests were only 42% of the forecast. In Bristol Bay, the Naknek-Kvichak and Togiak sockeye harvests reached or exceeded preseason forecasts, while the other districts fell short. The entire region only harvested 78% of the preseason forecast. (Note: 2011 Salmon season is not finished, but it is close.) 

 

Poor harvests for the 2011 salmon season do not paint the dreary picture that was emerging during the early 2000's as prices were hitting rock bottom. Booms and busts are part of the natural cycle, and while human intervention is attempting to smooth the curve, natural cycles will likely bounce back in all species and all districts. Furthermore, demand for Wild Alaskan salmon is strong and growing, insulating the industry from strong downward price pressures. This fisherman sees a bright future.  

2011 Southwest Salmon Actual v. Forecast

SW 2011 Salmon
Click image to enlarge

In This Issue...
Begich & FCC Chair in SW
DOT Seeking STIP Comments
Energy Aware in Oct.
AEB Changes
Au Revoir Ms. Sandvik
SW Monthly Indicator
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Some of Our Partners

EDA

DCCED

USDA RD

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Thanks to Our FY2012 Members!

ABS Alaskan, Inc. 

Adak, City of    

AHFC 

AIDEA  

Akutan, City of 

Alaska Energy Authority 

Alaska Groundfish Data Bank

Alaska Seafood Marketing Institute 

Alaska Village Electric Coop Aleknagik, City of   

 The Aleut Corp.  

Aleutians East Borough  

Aleutian Housing Auth.  

Alyeska Seafoods 

APICDA  

At-Sea Processors Association   

Becharof Corporation

Boyd, Chandler & Falconer 

Bristol Bay Borough  

Bristol Bay Economic Development Corporation 

Bristol Bay Housing Auth. 

Bristol Bay Native Assoc. 

Chignik, City of  

Commercial Fishing & Agriculture Bank 

Crowley Petroleum, Inc.   

 Dillingham, City of  

Egegik, City of 

False Pass, City of  

First National Bank of Alaska  

HDR Engineering, Inc.  

Icicle Seafoods 

Katmailand 

Key Bank 

King Cove, City of 

Kodiak, City of  

Kodiak Inn -- Best Western  

Kodiak Island Borough 

Koniag, Inc. 

Lake & Peninsula Borough 

Larsen Bay, City of

Magone Marine 

Marine Advisory Program 

Marine Stewardship Council 

McDowell Group  

Mundt MacGregor, LLP  

Northern Economics  

Nushagak Cooperative 

Ouzinkie, City of 

Pacific Seafood Processors Association  

Pedro Bay Corporation 

Petro Star   

Port Lions, City of  

Qagan Tayagungin Tribe  

Saint Paul, City of

Sand Point, City of  

SAVEC 

Shumagin Corporation  

UAF- Bristol Bay Campus 

Unalaska, City of  

UniSea 

WACDA 

 Wells Fargo Alaska 

Westward Seafoods  


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Upcoming Events & Dates to Remember
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