Prince William
Sound Aquaculture Corporation was incorporated December 30, 1974 in Alaska as a
nonprofit corporation. It was designated to be tax exempt by the Internal
Revenue under Code 501(c)(3). The State of Alaska has recognized this
corporation as a qualified regional association under the terms of Chapter 161
of the 1976 Session Laws.
Origins
of the Alaska Hatchery System
From its origin, the hatchery system was intended to protect the fisheries from cyclical weaknesses in the wild salmon returns. During the 1970’s, salmon runs were in decline throughout the state. In Prince William Sound, seining did not open at all in 1972 and 1974 because the wild returns were so low.
Under the leadership of Governor Egan and Governor Hammond from 1974 to 1982 - the State of Alaska began a major effort to restore the state’s salmon fisheries. The Fisheries Rehabilitation & Enhancement Division (FRED) was created in the Department of Fish and Game in 1971. A constitutional amendment provided the basis for Limited Entry legislation for commercial salmon fisheries, and for passage of the private, non-profit Hatchery Act in 1974.
The state adopted the user-group structure in a 1976 amendment to the private non-profit hatchery statutes. Today, five regional aquaculture associations from Southeast Alaska to Kodiak produce salmon via ocean ranching for common property fisheries.
Alaska statues provide that hatcheries may only be non-profit. By design, the hatcheries are allowed to recover operating and capital expenses, and costs for research and development and expansion of the production system, including wild stock rehabilitation work. The system is designed to provide benefits to the common property resource users. These private, non-profit (PNP) corporations have no stock-holders, owners or members.
Board
of Directors
The board is made up of 45 seats. Area E salmon permit holders have 27 seats: 13 drift gillnet seats, 13 seine seats and 1 set gillnet seat (60% of the total membership). These permit holder representatives are elected by ballot of all Area E salmon permit holders for 3-year terms.
There are 18 seats (40%) for designated representatives from native associations, municipalities, processors, personal use fisheries, sport fisheries, and subsistence users. They are appointed for 3-year terms.
The full board meets twice a year, usually in September and March. During the September meeting, the Board of Directors elects a chairman, vice-chairman, secretary/treasurer from their ranks. During the March meeting, the Board of Directors review the goals of the upcoming season and vote on the budget for the next fiscal year.
The Executive Committee of the Board of Directors has seven members. This committee is charged with overseeing and supporting management, and assuring that the mission, goals and operational plans of the full Board are achieved. The Executive Committee holds 12 regularly scheduled meetings per year. The Executive Committee fulfills all the major responsibilities of the Board and has full Board powers with the exception of making amendments to the bylaws or administrative policies, appointing the General Manager, revising the mission or long-range plan of the corporation, or changing the annual operational plan.
Other Board committees include: a Finance Committee, a Production Planning Committee, a Nomination Committee and an ad hoc Cost Recovery Committee.
Articles
of Incorporation
- The Articles are brief and have been amended only a few times since the
inception of the Corporation.
Bylaws
- The bylaws are reviewed and adopted annually.
The last amendment was made September 6, 2003.
Board
Administrative Policies
-
These were adopted
on June 3, 1989 and have been amended as recently as September 6, 2003.
Management
Team
David Reggiani was hired as General Manager by the PWSAC Board in September 2001. Dave came to PWSAC in 1988 beginning his career as a Fisheries Technician. His work experience advanced through all the culturist and hatchery management positions in a short tenure; then he served as Operations Manager. Now, as the General Manager he works closely with the Hatchery Managers in all aspects of the facilities operations. The five Hatchery Managers and the Hatchery Support Manager meet for a full week in the Cordova office in the spring and late fall to go over all management and budget issues.
The Finance Department has been fine-tuned, with better utilization of the computer and communications technology now available. The corporation utilizes a consistent budget process since the Board of Directors voted to accept the first ever balanced budget March 1997.
Between the Cordova office, Anchorage support warehouse, and the five hatcheries there are 42 regular employees. Seasonal hires average about 80 people throughout the year. PWSAC has several people return over the seasons.
Hatchery
Sites and Administration Sites
Armin
F. Koernig Hatchery (AFK)
This
was the first hatchery started by PWSAC in 1975.
This is 17 acres of patented land in Sawmill Bay, Evans Island, Prince
William Sound. The corporation owns
the land and buildings on this site which is in Sawmill Bay, Evans Island in the
southwestern district of the Sound. AFK
produces pink salmon, and has the responsibility of the Port Chalmers chum
salmon remote release operations.
Wally
Noerenberg Hatchery (WNH)
This
hatchery was completed in 1985, located in Lake Bay on the southern tip of
Esther Island in the northern district of the Sound.
PWSAC occupies the site under a State Park Special Use Permit.
The corporation owns the buildings; and the land belongs to the State.
This site produces pink, chum and coho salmon.
Cannery
Creek Hatchery (CCH)
Cannery
Creek Hatchery is owned by the State. PWSAC
funds and operates the pink salmon facility under a 20-year contract with
ADF&G. This site is located on
the eastern shore of Unakwik Inlet in the northern area of the Sound. This
contract began July 1, 1988.
Main
Bay Hatchery (MBH)
Main
Bay Hatchery is owned by the State, and is situated on USFS land in Main Bay on
the western shore of the Sound. This
is a sockeye salmon facility; PWSAC took over operation and management on July 1, 1991.
Gulkana
Hatchery (GH)
The
Gulkana Hatchery, near Paxson, is owned by the State, and is situated on State
lands. This is a sockeye salmon facility;
PWSAC took over production and management under a contract which began July 1, 1993.
Cordova
Office
The
administration office space is located at 500 First Street.
PWSAC purchased this building in September 2000.
It was completely renovated; and the office was moved in December 2000.
Anchorage
Warehouse
The
Anchorage Warehouse was leased in May, 1995.
The warehouse is used to consolidate and expedite supplies to and from
the remote hatchery sites via Whittier.
Regional
Aquaculture Associations Revenue Sources
Fish Sales: PNP hatcheries may harvest and sell a portion of their returning adult salmon for cost recovery. At PWSAC, the management policy is to define target revenue goals for each site to meet their annual budget needs. Annual Management Plans stating how many fish will be harvested to meet those revenue goals are submitted to the Alaska Commissioner of Fish and Game for approval. Salmon harvested by the hatcheries for sales are caught in the hatchery terminal areas by seine boats under contract to the corporation. The live fish are valuable to the processors because of their absolute freshness and dependable availability.
Enhancement Tax: is available only to those PNP’s that are classed as regional aquaculture associations. By state law, salmon permit holders in their regional area can vote in an enhancement tax of 1%, 2% or 3%. In March 1985 a written ballot election was conducted by the Department of Commerce & Economic Development. This election voted in a 2% salmon enhancement tax for the Area E salmon permit holders. Every salmon permit holder at that time was mailed a ballot. The enhancement tax was voted in with 73% of the voters in favor of the tax. The tax is levied on the gross income from salmon deliveries in the region. The tax is collected by the processors, submitted to the Department of Revenue, allocated to the Department of Commerce by legislative action, then disbursed to the corporation on an annual basis after July 1 each year. Last year $741,000 was received from enhancement tax revenues.
Revolving Loan Funds: corporations are eligible to apply for loans from a state Fisheries Enhancement Revolving Loan Fund, which can provide funds for capital construction and start-up operations. PWSAC has made use of these loans primarily for hatchery construction.
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