NSRAA | - Full Board Convenes at 9 a.m....NSRAA Annual Board of Director’s Meeting March 5 & 6,...

NSRAA Annual Board of Director’s Meeting March 5 & 6, 2013

Sitka, Alaska

Agenda Tuesday March 5, 2013 Full Board Convenes at 9 a.m.

9:00 a.m. Ω Call to Order Ω Roll Call Ω Establish Quorum Ω Approve Agenda Ω Approve Minutes of November 13 & 14, 2012 Meeting Ω Election Committee Report Ω Certify Election Results & Seat New Board Members Ω Election of Officers- President, Vice President, Secretary/Treasurer Ω Conflict of Interest Statements

9:30 a.m. General Manager’s Report

9:45 a.m. Operations Manager’s Report

10:00 a.m. Operation Plans & Project Update Ω Hidden Falls Hatchery – Adam Olson, Hatchery Manager (Tab 5)

10:15 a.m. to 10:30 Break Ω Coho Lake Rearing – Carrington Gorman, Project Leader (Tab 6)

Ω Medvejie Hatchery – Scott Wagner, (Tab 4)

Ω Haines Projects – Scott Wagner (Tab 7)

11:15 a.m. Hidden Falls & Mist Cove Closure Lines for Broodstock & Economic Harvest

11:30 a.m. Electronic Board meetings – Cost, Convenience, Efficiency

12:00 Noon Lunch

1:30 p.m. DIPAC Funding – Eric Prestegard, Executive Director

2:00 p.m. Deep Inlet Harvest Plan

4:30 p.m. Sitka Sound Science Center – Lisa Busch

4:45 p.m. Harvest & Cost Recovery Plans – Ω Hidden Falls Chum – Tax Assessment 20% Ω Deep Inlet/Medvejie Chum – Bid April ’13; Chinook – Need Bid for ‘13 Ω Mist Cove & Hidden Falls Coho Trident Multi-year Ω Carcasses All Facilities – Trident/HF & Silver Bay/Medvejie Multi-year

5:00 p.m. Adjourn until Wednesday @ 9 a.m. 5:10 p.m. Budget Committee Meeting 5:30 p.m. Allocation Plan Meeting

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Wednesday March 6, 2013 9:00 a.m. Reserve Accounts & Financial Snapshot – Update & Review

9:15 a.m. Budget & Income Plan for FY’14 – General Manager

9:30 a.m. Budget Committee Report and Recommendation – Deborah Lyons

Ω FY’14 Operational Budget Approval $5,897,186.00 Ω FY’14 Capital Budget Approval $389,454.00

$6,286,640.00

10:30 a.m. Break

11:00 a.m. General Manager Evaluation – Kevin McDougall

11:15 a.m. Pelican Representative – Norm Carson

12:00 Noon Lunch

1:30 a.m. Benefit Cost Analysis – Chip Blair

2:00 p.m NSRAA Scholarship

2:15 p.m. Committee Vacancies – Investment & New Facilities

3:30 p.m. Break

3:45 p.m UFA Report – Richie Davis

4:45 p.m. Set Fall Meeting Date

5:00 p.m Adjourn

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NSRAA BOARD ROSTER March 2013

*1. Alan Andersen F/V Sea Haven

*2. Brad Badger F/V Osprey

(’14) At-Large Power Troll

(’14) Haines Gillnet

1939 Dodge Circle Sitka, AK 99835

PO Box 684 Haines, AK 99827

907-738-0244

907-766-2235

*3. John Barry-VP F/V Pillar Bay

4. Will Bergman

(’14) At-Large Seine

(’15) Conservation

3944 N.Cottonwood Pl.Buckeye, AZ 85396

623

PO Box 130 Petersburg, AK 99833

-640-1167

541-740-7085

5. John Blankenship

6. Marlene Campbell

(’14) Subsistence

(’14) Municipality

PO Box 2765 Sitka, AK 99835

100 Lincoln St Sitka, AK 99835

907-747-3240

907-747-1855

*7. John Carle F/V Pacific Fisher

(’14) At-Large Seine PO Box 1 Hydaburg, AK 99922

907-723-2508 cell

*8. Richie Davis F/V West Bank

(’16) At-Large Troll 2347 Kevin Court Juneau, AK 99801

907-789-2696 907-321-1219 cell

*9. Mitch Eide F/V Rose Lee

(’15) At-Large Seine 7224 78th Ave SE Mercer Island, WA 98040

206-790-8815 cell

*10. George Eliason F/V Tammy Lin

(’15) Sitka Power Troll 102 Kuhnle Drive Sitka, AK 99835

907-747-6817

*11. Richard Eliason, Jr. F/V Laurel C

(’15) At-Large Gillnet 709 Sirstad St. Sitka, AK 99835

907-747-8111

12. Mike Forbush (’16) Processor Ocean Beauty 1100 W. Ewing Seattle, WA 98119

206-218-8199 cell

*13. Dean Haltiner F/V Island Pride

(’16) At-Large Seine PO Box 443 Petersburg, AK 99833

907-518-1167 cell

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14. Carl Johnson (’15) Interested Person PO Box 793 Lake Stevens, WA 98258

425-334-3464

*15. Eric Jordan F/V I Gotta

(’16) At-Large Power Troll 103 Gibson Place Sitka, AK 99835

907-747-6743

16. Deborah Lyons Secretary/Treasurer

(’15) Crew Member PO Box 379 Sitka, AK 99835

907-747-0629-H 907-738-3362 cell

17. Wade Martin (’16) Native Organization PO BOX 722 Hoonah, AK 99829

907-738-1470

18. Brian Massey (’15) Sports PO Box 2324 Sitka, AK 99835

907-747-3139

*19. Kevin McDougall-Pres. F/V Quicksilver

(’15) Juneau Gillnet PO Box 240714 Douglas, AK 99824

907-364-2273 907-209-4959 cell

20. Dave Moore (’14) Interested Person PO Box 2943 Sitka, AK 99835

907-747-5534

*21. James Moore F/V Aljac

(’15) Rural Troll PO Box 770 Haines, AK 99827

907-723-9060

*22. Mike Nilsen F/V Carol Louise

*23. Dan Pardee F/V Sentry

(’16) At-Large Gillnet

(’14) At-Large Gillnet

PO Box 2069 Petersburg, AK 99833

2223 Fritz Cove Rd. Juneau, AK 99801

907-518-1901

907-463-3365 907-957-2848 cell 907-463-4617 work

*24. Sven Stroosma F/V Voyager

(’16) At-Large Seine 18273 W Big Lake Blvd Mt. Vernon, WA 98274

360-202-7173

25. Karle Wolfe (’16) Interested Person 213 Lakeview Dr. Sitka, AK 99835

907-738-0367

* Permit Holders

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E-MAIL ADDRESSES

Name

NSRAA

or staff

Alan Andersen

Brad Badger

John Barry

Will Bergman

John Blankenship

John Carle

Marlene Campbell

Richie Davis

Mitch Eide

George Eliason

Richard Eliason, Jr.

Mike Forbush

Dean Haltiner

Carl Johnson

Eric Jordan

Debra Lyons

Address

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

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mailto:[email protected]

















Wade Martin

Brian Massey

Kevin McDougall

Dave Moore

James Moore

Mike Nilsen

Dan Pardee

Sven Stroosma

Karle Wolfe

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

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EXECUTIVE COMMITTEE

Kevin McDougall, Pres. John Barry, VP Deborah Lyons, Sec/Treasurer Richie Davis Mitch Eide George Eliason Richard Eliason, Jr.

BUDGET COMMITTEE

Kevin McDougall Deborah Lyons-Chairman Alan Andersen Mitch Eide Richard Eliason, Jr.

UFA REPRESENTATIVE

Deborah Lyons Steve Reifenstuhl

NEW FACILITIES & PRODUCTION COMMITTEE

Eric Jordan Sven Stroosma

AUDIT COMMITTEE

Kevin McDougall Deborah Lyons Richie Davis George Eliason & Interested Members

INVESTMENT COMMITTEE

Kevin McDougall Deborah Lyons Paul Webber Steve Reifenstuhl

EVALUATION COMMITTEE

Kevin McDougall Deborah Lyons George Eliason Carl Johnson

NSRAA BOARD COMMITTEES

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NSRAA REGIONAL PLANNING TEAM March 2013

Mitch Eide,NSRAA Board member representing seiners, 206-790-8815 6812 Woodlawn Ave N Voting Member Seattle, WA 98115

Alan Andersen, NSRAA Board member representing power trollers, 747-8747 PO Box 99, Sitka, AK 99835 Voting Member

Kevin McDougall, NSRAA Board member representing gillnetters, 283-3649 PO Box 240714, Douglas AK 99824 Voting Member

Steve Reifenstuhl, Northern Southeast Regional Aquaculture, 747-6850 1308 SMC Rd., Sitka, AK 99835

Brian Frenette, Regional Supervisor, Division of Sport Fish, 465-4270 ADFG, PO Box 20, Douglas, AK 99824 Voting Member

Flip Pryor, Commercial Fisheries Management and Development Div., 465-4250 ADFG, PO Box 20, Douglas, AK 99824

Scott Kelley, Commercial Fisheries Management and Development Div., 465-4250 ADFG, PO Box 20, Douglas, AK 99824 Voting Member

Andy Macaulay, Loan Examiner, Division of Investments, 465-2510 Dept. Of Commerce, PO Box D, Juneau, AK 99811-0800

Ron Josephson, Section Chief, 465-4088 ADFG, Division of Commercial Fisheries Voting Member PO Box 115526, Juneau, AK 99811-5526

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NSRAA Board of Director’s Meeting Minutes ~Fall 2012 November 13-14, 2012 1308 SMC Rd., Sitka, Alaska

Tuesday November 13, 2008

Call to Order: Vice President John Barry called the meeting to order at 9:00. Everyone in the room introduced themselves. The audit committee had met from 8:00 - 8:45 AM.

Roll Call: Secretary/Treasurer Lyons called the roll: Gillnetters present: Brad Badger, Richard (Botso) Eliason, Jr. Seiners present: John Barry, John Carle, Mitch Eide, and Sven Stroosma. Trollers present: Alan Andersen, Richie Davis, Bob Riggs for George Eliason, Eric Jordan and James Moore. Other Board members present: John Blankenship-Interested Person, Marlene Campbell-Municipality, Mike Forbush-Processor, Carl Johnson – Interested Person, Deborah Lyons-Crew, Brian Massey-Sport, and Dave Moore – Interested Person. Absent excused: George Eliason and Doug Chilton, Native Org. Late (Delayed inJuneau): Kevin McDougall-Gillnet, Dean Haltiner-Seine and Dan Pardee-Gillnet. Conservation seat is unfilled, Bob Ellis resigned. Interested person Paul Johnson resigned. Cheyne Blough Gillnet resigned. Others Present : Joel Hanson-The Boat Company, John Oliva-Kake Non Profit Fisheries Corp. and Eric Prestegard – DIPAC. NSRAA staff: Steve Reifenstuhl, Jean Myer, Scott Wagner, Bill Lyden, Bill Colthorp, Adam Olson, and Carrington Gorman. Trollers: Tad Fujioka, Carl Petersen, and Mary Ann Petersen.

Quorum: Established – NSRAA board bylaws state that a quorum is established if at least 8 gear group directors and 5 other directors are present.

Amend Agenda: Motion 11/13/12(a) Move appointed seats to 1:30 after Haines report M/S Mitch/Brian Approve agenda as amended. A Board member mentioned that the members arriving late due to the plane delay should be given a chance to suggest changes to the agenda. MCWOO

Approve Minutes: Motion 11/13/12(b) M/S Mitch/Brian Approve minutes from 3-14-12 to 3-16 -12 Board meeting. MCWOO

Conflict of Interest Statements- Board members are instructed to fill them out and return them.

Announcements: Board members were directed to submit for travel and reimbursement to Office Manager Jean Myer today and to submit nominations for the Board election ballot by 5 PM today.

General Manager Report - Steve Reifenstuhl Steve had submitted a written report to the Board with the Board book materials. Highlights from his oral presentation to the Board included.

• NSRAA building looks great with new hardy-plank and soffits and the new sign in place.• The Board had asked to streamline the meetings and get all business conducted in two days

instead of three. This required more preparation time of the staff. Steve complimented the staffand the changes made to make meeting more efficient.

• NSRAA experienced a clean audit with no management concerns. He thanked Jean and the staffand our consultant Vicki. It took NSRAA seven years of working with our accounting firm to getto this point.

• Fish returns: This was a better year than last, with $11million dollars in total salmon valuereturning to the common property fisheries. Chum survivals increased, and returns at HiddenFalls were above the forecast levels.

• The Hidden Falls Tax Assessment program went well in its first year.

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• NSRAA made egg take goals and production of fry and smolt goals. NSRAA is a little short oncoho eggs needed for the program at the Sawmill Creek hatchery.

• In FY 12 the Board took $500,000 from reserves and also $227,000 for capital improvements forGunnuk Creek. The operating and capital reserves stand at $8.8 million presently.

• The Alaska State loan for $656,000 was closed out. It paid for a barge and roof repairs.• The new chum program at Gunnuk Creek is moving ahead with a signed agreement for cost

recovery. The agreement defines sampling and payment procedures.• The new barge was diverted from Mist Cove to SE Cove (Gunnuk Creek) for crew housing and

feed storage.• The problem of the extra territorial jurisdiction petition to shut down fisheries in Chatham is

ongoing. Steve attended two meetings. The Feds want to see progress at the Federal SubsistenceBoard level and at the Regional Advisory Committee levels. NSRAA testified with offers to helpwith possible fry stocking, and barrier analysis. NSRAA staff can assist to increase understandingof the impediments to increasing the return size and productivity of the sockeye system. We doknow that 50% of sockeye returning died at the base of the falls this year. A complete lifecycle ofa sockeye salmon is 4-5 years, so any positive change made today will take 4-5 years to beobserved in the population. The current expectations for rapid improvement to the sockeye returnlevels by the Secretaries of Interior and Agriculture may be erroneous when that fact is taken intoconsideration. Staff will continue to visit the area and offer help.

• The chum and pink salmon straying study is moving forward and has been funded by the State. Aparallel study on chinook salmon in Idaho was done recently and published in Molecular BiologyJournal. “There was no lowering of fitness in two generations of Chinook on the Salmon Riverbetween H-H crosses and H-W salmon crosses compared to W-W crosses.” It was a rigorousstudy. The Alaska study will track changes over two life cycles of the studied species and willtake ten years.

Hidden Falls Operation Mangers Report – Scott Wagner Scott opened his report with a nice aerial photo of fishing at Hidden Falls. NSRAA used aerial photos as part of the new technique for monitoring participation in the fishery as part of the tax assessment program.

NSRAA staff at Hidden Falls was very busy with their monitoring responsibilities. There was one possible misreporting out of 400 landings. That represented a great effort by the fleet in the first year of the program. Cost recovery management was eliminated and there was no complete closure of the Terminal Harvest Area to fishing; two important beneficial changes which resulted from the program. Some modification of the lines occurred for brood stock returns. Overall broodstock management was simplified. ADFG also had to work out a few bugs. The new E tickets were not communicating with the older ticket software, but it is getting worked out. Scott concluded that the monitoring took a lot of staff time but it was possible to collect the information needed.

Brood stock collection was simplified because cost recovery was eliminated. Seven boats volunteered and collected 148 thousand broodstock in seven days, largest ever. Staff added another 15,000 additional chum by volitional entry. Later they realized they had underestimated the seine broodstock capture by 15% but they were making their best calculation at the time.

Scott reported on his efforts to completely update the ways in which NSRAA manages the hatchery permit data base. Digital copies of all permits are now available. All projects now have complete Operation Books with BMPs etc. Everything the managers need on a day-today basis. He has created a filterable/searchable file which is very useful. The new system will prevent permits from expiring and keeps track of lease expiration dates.

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All NSRAA hatchery activities take place on leased lands. Scott did a complete review of the projects and made some important corrections. NSRAA has leases and permits with ADOT, USFS and City and Borough of Sitka. He is also applying for water rights where needed.

Scott has also improved the NSRAA Safety Program. Each project will have a designated safety officer and monthly site training with NSRAA incident forms.

NSRAA is currently managing six capital grants worth $4.5 million dollars. The maintenance staff are doing an excellent job with the added projects. Scott said the next two-three years will be very busy.

Scott briefly reviewed the SE Cove Kake Gunnuk Creek Hatchery partnership project. Currently 10 million eggs are incubating at Hidden Falls. The barge which had been destined for Mist Cove is now in Kake Harbor. The net pens are on the way and staff and logistics details are being finalized.

The Pelican project is still in development. The summer temperature probes were recovered. Scott is planning to meet with the Pelican community to discuss the Management Feasibility Analysis received from the State ADFG and to discuss their options based on the conclusions of that report.

Scott explained that opening the new Sawmill Creek hatchery had experienced problems with water being shut off by city staff due to a valve failure. NSRAA and city staff worked out an agreement that will prevent these problems in the future. It took a lot of time and effort. The future Blue Lake dam project will also interrupt water flow to the facility. NSRAA staff is hoping to finally have the fish currently held at Medvejie on site at Sawmill Creek next week.

The Hidden Falls hatchery received the ACOE permit for the new pier project. Staff is only waiting for USFS permit to go ahead with capital construction.

Scott summarized the Medvejie facility highlights for the past season. 2012 saw the largest eggtake of chum and coho in project history. A $900,000 grant was received through the State Legislature for deferred maintenance and will be used to improve water delivery, building condition and housing.

The Deer Lake project site has been reorganized and cleaned up. The project experienced the best net pen and lake survivals and largest release, over 2 million, in its history.

Scott has begun regular meetings of all project leaders to prepare for Board meeting, review production goals, work site policies, staffing needs permit status etc. The meetings are important prior to development of the Annual Management Plans.

Scott updated the Board on staffing changes and asked the Board for feedback on the new format for the staff reports.

Steve added some remarks about dealing with the City and thanked Marlene Campbell, the Municipal Representative, for her role. She has been a huge help.

Eric asked if it was necessary to have new facilities and production meeting tonight. Scott recommended that they discuss new the information in committee before coming to the Board.

A board member asked if changes in the State legislature will affect grants. Steve explained that current grants are intact but future grants will be much more difficult to obtain.

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2012 Salmon Season Recap and 2013 Forecast - Chip Blair, NSRAA Data Analyst This report is located under Tab 8 and Tab 3 in the Board book and is also posted on the NSRAA website.

Chip opened his report by stating that he would concentrate on an overview of commercial ex vessel harvest value for the season and the allocation implications of the catch distribution.

2012 broke all previous records for value in the Southeast region and the $65 million dollar ex vessel value far exceeded the previous record of $45 million dollars, set in 2011. SSRAA and DIPAC had huge years with chum and NSRAA improved from 2011. The all-gear value was greatly increased. Record values were experienced for seine ($32M) and gillnet ($25M) and were the 2nd highest for the trollers ($8M). The value of the harvest of the enhanced salmon represented 50% of the total value of the catch in Southeast Alaska

The Board members discussed the 5 year rolling average chart with Chip. For 2012 the Gillnet harvest of 42% of the total value was above the target range of 24%-29%. The Seine harvest of 42.4% is below the target range of 44%-49%. The troll harvest of 15.6% is below the range of 27%-32%.

Chip switched from a region-wide perspective and focused solely on NSRAA. The 2012 NSRAA enhanced production commercial harvest value is estimated at $11.4 million, up from 2011 value of $7.9 million. By species; chums increased in value and the absence of fish having to have been taken for cost recovery contributed to the overall value of the common property harvest. Chinook value remained close to the five year average.

The commercial value of enhanced coho was low, less than $300,000, because the coho adult returns were quite poor, similar to the low return of wild stocks. The exception was Deer Lake, where survival was estimated at 6%. At Hidden Falls coho survival was 1.1 % and at Medvejie/Deep Inlet, 2.5%.

Chip made his projections for the 2013 returns. For Deep Inlet 1,370,000 chum salmon are predicted to return, double what returned in 2012. The Hidden Falls return should be similar in size to 2012 at 1,315,000. Haines chum should arrive at 30,000, up 10,000 from 2012.

The Medvejie chinook return is predicted at 12,300, 4,000 fish higher than 2012. The Hidden Falls chinook projection of 12,300 is 3,000 fish higher than 2012.

The Deer Lake coho return projection of 124,000 fish is 3 times higher than the 39,372 fish that returned there in 2012. 154,000 coho are expected to return to Hidden Falls. This is 4.5 times greater than the 2012 return of 34,171 fish. The Medvejie/Deep Inlet coho return projection is for 10,000 fish, up by 4,000 from 2012.

Board members discussed the sizes of the returning fish. A troller noted how far below the range of allocation percentages that the fleet is.

Medvejie Hatchery - Bill Coltharp, Hatchery Manager This report is located under Tab 4 in the Board book and is also posted on the NSRAA website.

Bill characterized 2012 as a calm year, with good things happening, and no disasters. The hatchery had lots of water when they normally don’t need water, then experienced a very dry October. Now the water situation is back to normal. There are no disease issues at Deep Inlet or Medvejie and they are experiencing good growth on chum rearing.

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Medvejie chum achieved the 4 gram size goal. The Vibrio oral vaccine was successful and staff has tailored a vaccine regimen for next year. Mortality is extremely low. The fish pen with two treatments did better. Chinook were also treated with oral vaccine. Plankton levels at Medvejie are the highest at release in 12 years.

Bill said 2012 did bring some challenges. Chum growth during the first three weeks of fish culture is critical. He noticed the young fish weren’t feeding well. Staff switched feed and the fish took to it better and they were able to meet the 4 gram at release (May 30) size for broodyear 11 fish. The brood year 10 fish were released at 2.2 grams May 2.

Bill plans to try to tighten up the egg take and get 5-6 million eggs in a shorter period of time which should help to keep the release consistent.

Because Medvejie got chum broodstock at the hatchery staff did not have to tow pens from Deep Inlet. Seeding numbers are higher than estimated. Bill had a great spawning crew, good hard workers. He is proud of his whole crew.

Bill gave a detailed account of the 65 million eyed eggs that are in the incubators. 22 million Hidden Falls and 15.2 million Deep Inlet chum eggs are in the regular rearing program. Other eggs are for Medvejie broodstock, and the 4.0 gram at release program.

The Broodyear 2010 chinooks have had very little disease in both the freshwater over wintering (FWOW) program and the saltwater overwintering program (SWOW). The underwater lights made a positive difference. The fish size is more uniform and small fish catch up. The light help illuminate holes in the pens. This year the actual release numbers matched the book (calculated) numbers.

Chinook were out-planted to the Halibut Point Marine pens for the first time this year. The FWOW fish released there did very well. Fish grew 2 grams in 16 days. Fish went into saltwater with no issues. The Broodyear 11 FWOW are healthy and on track.

Medvejie chinook enumeration was a bit tricky because staff had to adjust equipment for accuracy. The chinook releases went well. 2012 chinook eggtakes survival from green eggs to eyed eggs was approximately 95.4%. 3.8 million chinook eggs were taken. There was very little bacterial kidney disease, BKD. Chinook from the freshwater overwintering program; 400,000 are scheduled for release at Halibut Point and 150,000 at Medvejie. 3,000,000 salt water overwintering chinook are to be released from Medvejie.

There are approximately 213,000 Salmon Lake stock coho on hand. 50,000 of these will be released in May at Medvejie for broodstock and the rest at Deep Inlet. With 443,000 green coho eggs taken we are slightly below the goal of 500,000 eggs. During 2012 50,000 coho were released a Bear Cove, size was 26 grams. 116,000 coho were released at Deep Inlet at 30 gram size. These are the largest coho ever released by the Medvejie hatchery.

Bill also enumerated upcoming maintenance tasks which included expanding and improving the chum eggtake area, new water sources, improvements to the raceways, building and housing improvements and engineering work on the water intake at the pit.

Sawmill Creek Hatchery- Scott Wagner This report is located under Tab 4 in the Board book and is also posted on the NSRAA website.

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There are no fish in the new hatchery yet. Scott described the work done with the city to come up with a reliable water source and we now have a line that comes directly from the penstock. Referring to the water interruption that occurred earlier this year, Scott said the valve that failed was old infrastructure from the mill. NSRAA realized there was a problem that really needed solving when water to the new hatchery was turned off by city staff because of the valve failure, without consulting or informing NSRAA staff. Scott worked very hard to resolve the problem and to come up with an agreement where all parties understood their roles. He showed a series of slides that showed the Board where the NSRAA water line originates from the City system and explained that now there is a line that can be opened and closed and controlled by NSRAA staff. NSRAA requires 10 cfs for the hatchery. The city staff did not understand that once the fish are in the hatchery there can be no interruptions to the water flow. Fish will be moved from the hatchery for two months when this is required by the Blue Lake dam construction project. Once the Blue Lake project is complete the Sawmill Cove hatchery will have all new water lines. Steve said the electric department was awesome to work with. An additional $60,000 will be needed over what was previously budgeted to pay for costs associated with this work on the water system.

Salmon Lake Coho-Scott Wagner This report is located under Tab 4 in the Board book and is also posted on the NSRAA website.

NSRAA is required to man the ADFG weir in Salmon Lake Creek. During the winter a tree fell on part of the weir that stored on land. Staff embarked on a project to rebuild the weir themselves which required a lot of ingenuity. The new supplies were destroyed in route and had to be reordered, but Jeff and the crew did a fantastic job responding to the challenges presented. Once in place, the weir allowed the staff to enumerate 890 adult coho past the weir. ADFG allowed NSRAA to take an additional 23 females for broodstock at the lake. Two NSRAA fish were found at the weir site. NSRAA production goals for Sawmill Creek coho will only be allowed to increase if the straying rate stays below 2% of the return The Board members discussed the issue of straying and a Board member complimented the staff for the forward thinking involved in commissioning the pink and chum study to get real answers on the straying issue. A Board member asked about rates of predation on chums at Bear Cove and Deep Inlet and if the otolith marks could help verify the difference in survival rates. He is concerned about predation at Deep Inlet and the large numbers of cormorants and whales there. Steve said staff is already making plans to move the Deep Inlet chums next spring to lower predation rates.

Hidden Falls Hatchery-Adam Olson Hatchery Manager This report is located under Tab 5 in the Board book and is also posted on the NSRAA website.

Adam said he would focus his talk on points not in the Board books. He said this year the fish were the healthiest ever released by the program. As a general goal staff is making it a high priority to ensure good marine survival by continuing to analyze release strategy. After a review of data they are making the following changes:

• Staff will advance the chum release timing to increase survival• Staff will closely monitor whales in the area which are still increasing in population. The general

strategy is to avoid them, don’t attract them.• The coho release strategy has also been modified for early, middle and late entry. Staff will still

tow some out and evaluate survival. Fish are allowed to acclimate in salt water before release.• Chinook trial update: 25% of the chinooks that are being held for release are unaccounted for, and

cannibalism is suspected. Staff is responding by feeding the fish more to reduce their appetite.The goal is to increase marine survivals. It is still reasonably cost/beneficial 1/3.8 to spend moreto feed more, if the result is increased survival rates.

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2012 chum spawning went extremely well. Staff took 140 million eggs in 20 days. This was possible because 52% of the returning fish were females with high fecundity and the crew worked extremely hard. The new front round pond feed shed built with grant funds will drastically improve the quality of the feed.

The 12” high pressure water line ruptured, the hydro plant spun down and tripped breakers. Staff shut down the hydro, isolated the line and dug it up and found a four foot crack in pipe. New pipe was installed and rebedded. It may be necessary to replace the whole line. Adam also reported on a Coast Guard rescue of injured fisherman and on bear issues at the Hidden Falls facility.

Coho Lake Rearing Project –Carrington Gorman, Project Manager This report is located under Tab 6 in the Board book and is also posted on the NSRAA website.

Spring camp opened with 12 feet of snow and a frozen lake. The Wavemaster pens were frozen and submerged and they withstood this well. Staff shoveled the weir area (3 days) and hooked it to the live box. The pipeline took two weeks of shoveling. The lake stayed frozen one month. All gear was hiked in with backpacks. The helicopter arrived on time (early May) and flew all bulk items and feed in. Emigration started and the 2,071,481outmigrants is the highest emigration in project history, with the best survival rate. Fish were 19.2 grams average size and there were a lot of age two’s 355,000. Carrington said that staff decided to change the location of the lake release (further from the outlet) and after the lake turnover helped the fish stay in the lake. Staff has also changed the manner of over wintering the net pens. They have sewn tops on properly and the nets are submerged at a shallower depth. 186,000 were released from the overwinter pen. Staff reduced mortality from 16% to 8%. Over two days and 14 flights, staff accomplished a fry transfer of 2.8 M coho fry at .8 grams from the Hidden Falls hatchery. This is the largest transfer ever into the lake. The new fry entering the lake took awhile to get used to cold temps but by the end of July/beginning of August they took off and hit 18 grams in October. They are now on a maintenance diet. 2.76 M fish at 18.9 grams. NSRAA staff at Deer Lake did lots of reconstruction of lake floats and trail work this year, and also passed a surprise USFS inspection. They also built a new feed float and reconstructed the old float. They totally cleaned up the site. This winter, staff will move the 4 overwinter pens to the west basin and will cover and submerge the pens. An additional four pens of fry will be released to overwinter in the lake. Steve summarized by thanking Board for sticking with the project while staff worked through challenges of rearing at this site. A Board member asked a question about costs at site like Deer Lake compared to Hidden Falls. Steve explained it’s not a really fair comparison. The cost is less at a facility like Hidden Falls, which is also producing other species and spreads overhead across programs. He is very optimistic about Deer Lake and predicted within a few years it will be very productive. A Board member asked if another lake rearing program was possible. Steve suggested Kalinin Bay/Surprise Lake area for investigation.

Break for lunch. Reconvene 1:35PM. Chairman Kevin McDougall calls to order

Haines Projects – Scott Wagner, Operations Manager This report is located under Tab 6 in the Board book and is also posted on the NSRAA website.

A legislative grant sponsored by Bill Thomas provided $600,000 for spawning channels. Staff is looking at Haines projects in a more comprehensive manner. Staff is making changes to improve otolith marking with different incubation location and monitoring plan. The only hang up is working with ADFG on monitoring of the commercial fisheries. Staff will work on incubation locations. Herman Creek performed well, and all needed eggs were taken there and at 31 mile. Chilkat River had high water levels, then very low levels, then froze, so egg take was incomplete at 17 mile. NSRAA staff was asked not to go into critical habitat area for eagle preserve so they had to hike 2 miles to find fish.

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NSRAA staff will address being asked not to collect eggs in Herman Creek in annual operating plan and working with Eagle Preserve and ADFG. The NSRAA building was damaged from last year’s snow loads, with ice damage and carpenter ants damage. The community of Klukwan might be interested in a spawning channel.

IRS Update – Steve Reifenstuhl, General Manager A message was left on the phone of the NSRAA attorneys that the IRS Supervisor reviewing the NSRAA file has passed off on the case. NSRAA should be cautiously optimistic.

Appointed Seats Board Discussion

Conservation Seat: Staff read letters of interest in the seat that had been received from Karl Wolfe - experienced, Floyd Tompkins-Past President Sitka Conservation Society and Kim Elliott- Advisory Committee Harbor Dept and Sac Roe. Wade Martin - Former Board member. Motion 11/13/12(c) M/S Eric/Mitch. The NRSAA Board will not appoint people to appointed seats who have a commercial salmon permit or are the spouse of a permit holder. The motion failed with none in favor. Board members discussed the merits of candidates and the purpose originally of the conservation seat. A suggestion was made to eliminate the two seats and reduce the size of the Board Motion 11/13/12(d) M/S Botso/Mitch. Table both seats for nomination. 13 in favor, 6 opposed.

Scholarships Policy and Guidelines Steve developed a draft Scholarship Policy to reflect current Board practices in awarding the three scholarships. The policy clarifies that a gap year is allowed and clarifies that any full-time NSRAA employee’s child can apply in addition to any dependent child of a commercial fisheries salmon permit holder who pays enhancement tax to NSRAA. Motion 11/13/12(e) M/S Eric/Ritchie Adopt the draft Scholarship Policy and guidelines 17 in favor 2 opposed 2 abstain.

Break till 2:45

Hidden Falls Tax Assessment, Steve Reifenstuhl Steve said the assessment program was very successful and went well. Monitoring went well. ADFG did cross checking and fine tuned their system. NSRAA should collect $1.3 million dollars in July 2013, $547,000 beyond goal of $100,000 for Cost Recovery and $600,000 for the Hidden Falls Chum Assessment Contingency Account. Chip will clarify Board choices as how to apply the funds to the coming year’s budget. None of these funds are in hand; they will come next year in July from the Department of Revenue. The Board needs to pass an annual resolution for next year, clarifying NSRAA’s intention to employ a tax assessment as required annually by the legislation that established the assessment program. Chip’s hand out was reviewed by the Board. The 2012 Cost Recovery goal was $193,000. $1.54 million is the goal for Cost Recovery at Hidden Falls for next year. And the Deep Inlet goal is $1.61 million by staff’s best guess at this time. A seiner said he prefers to keep assessment at 20% for next year and then adjust the rate in future years. “Our (the seiners) reason for wanting 20% again to generate funds that can smooth out variables in future years.” NSRAA also will be beginning to be paying back loans. Current legislation says AK Department of Revenue sets the rate, but takes into account the NSRAA Board recommendation. Fishermen want to build reserve so they can take a risk on a lower assessment when they need to, in the example of a year of a predicted poor return of chums. The Board realized in their comments to Chip that he has to take a number of variables into account; the estimate of the size of the return, the estimate of the price that will be paid, and the budget estimate… etc.

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Motion 11/13/12(f) M/S Eric/ John Barry Implement the assessment at Hidden Falls for 2013 and prepare a resolution of the Board. MCWOO The Assessment Program is working well. It has maintained regular fishery openings, made it easier to achieve broodstock and decreased NSRAA management time spent in the cost recovery operation.

Motion 11/13/12(g) M/S Alan/Brian Massey Set the Assessment Rate for 2013 at 20% for the reasons previously stated MCWOO

Motion 11/13/12(h) M/S Eric/Jim Moore Direct staff to pursue moving from a percent value assessment to flat rate assessment at Hidden Falls Chum Assessment Program. MCWOO A Seiner said thank you. The whole fleet appreciates the support of NSRAA Board and staff. Many compliments were made to Steve by the Board members. Board discussion occurred on a percent rate as preferable. There is general support from the Board for a percent value approach and recognition that it would require legislation.

Gillnet Representative to Regional Plan Team Cheyne’s spot on the RPT needs to be filled. Kevin offered to go for December meeting. No objection.

IRS Update II Steve and Kevin felt because so much was at risk to the communities and fishermen who depend on these programs that they had to show up in person to the meeting between the Attorneys and the IRS. That trip cost $25,000 in attorney’s fees plus room and board. It also gave Steve and Kevin a chance to see our attorney’s at work. They did a good job. Kevin wanted to be present so there would be a fisherman’s voice

Financial Snapshot October 31, 2012 – Steve Reifenstuhl NSRAA has $12.5 million total in liquid assets. There is $4.2 million on hand to cover the budgeted expenses for the remainder of the year. The remaining reserve balance is $8.34 million. The account was reduced this past year by $277,000 withdrawals for SE Cove and $500,000 withdrawal to reduce cost recovery. The reserves are invested 31% in fixed income, 13% in equities and 56% liquid short term funds. NSRAA current policy has $5.5 M in operating and $2.5 M in capital, which needs to be changed. Steve is recommending pulling out the “New Facilities Fund” from the reserve policy to allow more flexibility; this will be discussed more later on the agenda. The Treasurer mentioned that the NSRAA accountant Max made some recommendations about the reserves, the way they are reconciled, etc. This will be discussed more thoroughly during the NSRAA audit topic, later on the agenda.

Southeast Cove Update - John Olivia John gave a brief summary about what happened at this past season at SE Cove. They took eggs and got net pens in.

Baranof Warm Springs Proposal – Steve Reifenstuhl This topic is on the agenda because it will be taken up at the RPT in December. Steve reported that no pro forma has been supplied for analysis, despite his helpful input to the proponent. The project has 20csf of water rights, which are under appeal. The proposal will tap Baranof Lake for water at an estimated $10 million dollar cost. Board members discussed the proposal. Motion 11/13/12(i) Mitch/Jim The NSRAA Board opposes the Sustainable Salmon Institute Hatchery at Warm Springs proposal because of potential negative impacts to existing hatchery and wild stock fisheries. The proposal also lacks clearly demonstrated benefits to fisheries and does not appear to be financially sustainable. Motion carried unanimously and without objection.

Announcements:

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The Interested Person, Processor and Native Organization seats are also up for appointment, in addition to the Conservation seat. A Board member said he would like to see the best possible people appointed and would like to see 2/3 of the Board be in favor of the appointments. That would reflect a feeling by the Board that the very best candidate was selected. The President said Troll and Seine seat nominations were lacking candidates and close at 5:00 PM today.

Correspondence: Letter from Mr. Svenson, a fisherman. The Board discussed a letter which had been received by some of the Board members. It criticizes the Board, the General Manager, and complains about declining returns. Board members stated the individual has never discussed these issues with the commercial fisheries representatives on the Board so that a dialogue and mutual exchange of information could occur. Board members felt the negative statements against the General Manager were unjustified. Board members stated that Mr. Reifenstuhl’s involvement in other forums protects commercial fisheries, his conduct is exemplary, and is in the best interests of commercial fishermen. A Board member thought it was more of a personality issue.

Mitch, Botso and Jon Barry will stay for a meeting of the new facilities committee. The Board is dismissed at 4:30 PM and will reconvene at 9 AM tomorrow.

Nov 14, 2012 Call to order @ 9:00 AM. Roll was taken. Members of the public signed in. The President recognizes people from Pelican who were in attendance.

Pelican & Excursion Inlet-Chum Salmon – Eric Jordan, Committee Chair Eric Jordan distributed the New Fisheries Development Committee report to the Board and distributed the handout. Eric reported that last night’s committee was well-attended and the ADFG Management Feasibility Analysis for a Pelican Hatchery was discussed. There is support from the community of Pelican and the possible involvement of DIPAC was considered. Three consensus recommendations are presented to the Board:

1. To approach the DIPAC Board about a cooperative project to release up to 30 million earlychums at Excursion Inlet or elsewhere in Northern SE Alaska to benefit all tree gear groups.

2. To “back burner” development of Pelican hatchery by NSRAA while focusing on a quicker startwith DIPAC.

3. To continue to aggressively explore any and all opportunities for hatchery development releasesites or lake rearing in Northern SE.

The Committee stated that they had learned that to do 30 million chum eggs at Pelican would take 2 years minimum through NSRAA. However, through DIPAC it could happen as early as next year, which would be more beneficial to the community and the fisheries. DIPAC may be a more feasible source of broodstock. They would have to apply for PAR. DIPAC has a production/allocation/research committee that could review a proposal letter from NSRAA. They (DIPAC) could approve the chum production by the April RPT meeting. Once approved at the RPT, the mechanics after that would be to capture additional broodstock. DIPAC has some options for housing additional eggs, Sheep Creek facility or McCauley Hatchery. DIPAC would need new incubators, lately they have been difficult to obtain. That would have to be figured out.

ADFG is opposed to the Excursion Inlet location for chum release because of sockeye returning into Neva Lake and timing of the chum run. Steve thinks a harvest area a mile north of Neva Creek could be considered. This would allow sockeye and chum to segregate. That is a warm stream. Summer spawners entering in August will emerge in December/January and will die and the fall run will spawn over them. Eric thinks the presence of the sockeyes in Neva Creek (small 3 lb size) which are used by Hoonah and Gustavus and residents of Excursion Inlet would be a problem. A specific gillnet mesh size could pass the sockeyes through. Steve said he is committed to dedicating a lot of energy to try to work through the

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concerns of ADFG to these two projects and to try very hard to turn the last few years of work on the projects into on-the- ground projects that will return fish to the area. A Board member asked if coho for trollers were considered by the committee. The President explained reasons why the committee discussion revolved primarily around chum fisheries. Steve explained the best coho culture technique would be lake stocking but all the lakes in that area (Pelican) are in wilderness areas. Also Pelican was evaluated by staff for Chinook, Coho and Chum and staff concluded chum was most suitable and expeditious. Motion 11/13/12(j) M/S Eric/Jim Moore NSRAA Board endorses the recommendations of the NFDC report. Motion carried on a roll call vote with 20 in favor and no opposed

Deep Inlet Chum- Sumer vs Fall run performance-Chip Blair Staff is evaluating the difference in survival between the Medvejie and Hidden Falls chum stocks released at Deep Inlet. There is a clear difference in marine survival. Chip presented the report and it was also posted on the website. During the years 1989 through 2011 the Medvejie Hatchery released 380 million or 36.6 % Hidden Falls chum and 658 million or 63.4% Medvejie fall stock chums. However the fish returning to Deep Inlet show the Medvejie stock average survival at is 5.6% at Deep Inlet; somewhat better than the Hidden Falls stock average survival of 3.1% at Deep Inlet. For comparison Hidden Falls chum returning to the Hidden Falls hatchery show a 4.7% survival rate. When Chip looked at the performance of the returns 76% of the return was Medvejie stock and 23.6% of the return was Hidden Falls stock. The stocks differ in return timing. The Hidden Falls stock returns earlier, late June to mid August, peaking in mid July. The Medvejie stock returns later, from 3rd week of July to 3rd week of September and peaks in mid August Chip’s Cost Benefit Analysis showed: Commercial Value Commercial Value and Cost recovery HF 6.9 to 1 8.5:1 Med 12.2 to 1 15.3:1 HF @ HF 7.1 to 1 9.3:1

Chip said the Hidden Falls stock provides more early-season opportunity for gillnet and seine and the HF stock provides more cost recovery options. Staff looked at switching to all Med and eliminating HF component. This could increase total production but may not translate to similar performance. There would be possible changes to the Chinook net harvest in spring. 50% more Medvejie broodstock would be needed and that brings along management issues and fisheries restrictions. On the positive side there would be less need to take broodstock at HF if they were phased out at Deep Inlet. Board Discussion: A Board member asked if this could be done at all once, or phased in over time? (to avoid harvest restrictions) Steve answered NSRAA can shift 10 M without a permit change. A question about data ended in 2007? Chip explained these are brood years. Marine survivals of 9%-13% were tremendous. Then we had average years, and then the years we held on to fish longer in colder springs. Some other methods like the 4 gram fish at release are being tried to change the declining returns. 98-2003 survivals picked up to 4% but haven’t been that great lately. Chip said predators are a problem. NSRAA is trying different release strategies. A fisherman said if you eliminate the early Hidden Falls what about all the fishermen who fish at that time? A board member asked if another early run chum stock is available. Steve said he is not aware that one is available. Building a new summer run stock is very difficult and takes time. In response to a board question staff said the Hidden Falls chum will now be released outside the Inlet. A Board member asked how survival rates of early run compared to DIPAC survivals. The DIPAC representative said they see similar trends with varying survival rates. A seiner said there seems to be no net gain by changing the stocks, the really problem is the overall low survivals. A troller asked, “If we did switch, it would be 22 million fry, how many dollars would that be if they survived at a similar rate?”

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Staff said if it was 2.5 % increase in survival with an 8lb average at 75 cents/pound, it could be an increase of $3 million in value. A gillnetter said, “Let’s look at our recent survival rates 2.5% seems awfully optimistic.” Chip agreed, but pointed out the stocks still survive at different rates. A crew member said the diversity of the releases has saved the organization in the past maybe we should keep them as is. A gillnetter said there is a value to diversifying to the fleet. The early gillnet fishery is really important to the fishermen. A troller said the organization is making a big investment to provide this early opportunity to a few gillnetters. Trollers mainly benefit from the fall fishery for the trollers. It actually does not make economic sense in his mind. Staff pointed out that the Medvejie return has been increased by 10 million last year. A seiner said there would be tremendous economic loss to the community if the seine fleet stopped coming here in July to fish the Hidden Falls stock. Steve thanked the Board for the discussion and said, “All the DI stocks will be towed out this year for the release. We do seem to be coming out of our lowest point in marine survival. We should see results in three years. NSRAA normally releases in the evening and hits the highest zooplankton timing window.” Steve discussed the tow release strategies with a fisherman in attendance that had questions and was very concerned about the predation by rockfish along the Deep Inlet area shoreline.

Break

Appointed Seats-Board Discussion The President recommended that the Board finish the appointed seats discussion and actions.

Motion 11/13/12(k) M/S Richie/Deb Take the Board Appointments Agenda Item from the Table. Motion carried with 15 in favor, 3 opposed.

Processor Seat: Motion 11/13/12(l) M/S Eric/Mitch nominate Mike Forbush for Processor seat. Motion 11/13/12(m) Closed Eric/Botso. Mike Forbush is appointed to the Processor Seat and approved by unanimous consent. MCWOO

Native Organization Seat: Motion 11/13/12(n) M/S Eric/John Barry. Nominate Wade Martin for Native Organization. Motion 11/13/12(o) M/S Deb/James. Nominate Doug Chilton for Native Organization. Motion 11/13/12(p) Eric/ John Barry. Move to close nomination. MCWOO. During the nomination discussion the Board discussed a new way to endorse the candidates by holding a second vote to endorse the highest vote getter.

Motion 11/13/12(q) M/S John Barry/ Alan Andersen. The NSRAA Board will request a 2/3 majority vote by secret ballot to fill appointed seats. The Board has the option to vote twice. The Board would vote Yes or No on the highest vote getter. A Board member said he would like to see a 2/3 vote to endorse a possible Board member especially if they are a permit holder. The motion carried with 15 in favor and 2 opposed.

The Board returned to process of selecting the Native Organization seat. The President asked the Board to vote for the nominees. Vote by Ballot indicated 7 for Chilton and 14 for Martin. On the first vote a 2/3 majority was not attained, so the Board exercised the option for a second vote. A runoff vote to endorse Wade Martin was held and the Board members were instructed to vote Yes or No for Wade. The vote was 12 yes and 6 no. Wade Martin is appointed to the Native Organization Seat.

Conservation Seat:

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Motion 11/13/12(r) M/S Deb/Alan. Nominate the slate of Candidates: Floyd Tompkins, Karl Wolf, John Jensen, Will Bergman, Kim Elliot. MCWOO

Board members expressed their opinions about the candidates, with all speaking in favor of Mr. Bergman’s reputation, detailed knowledge of fisheries stocks throughout SE Alaska, and strong conservation ethic. The Board voted by ballot. The result of the vote was 17 for Will and 2 for Karl. Will Bergman is appointed to the Conservation Seat.

Interested Person Seat: Motion 11/13/12(s) Accept the slate of candidates. M/S Brian/Richie Rafe Allensworth, Cheyne Blough, Kelly Chapman, John Jensen, Kim Elliot, Karl Wolfe. MCWOO

A vote by ballot was held. A run-off vote occurred between the two highest vote getters, Karl Wolf and John Jensen with 12 for Karl and 7 for John Jensen. The final vote endorsed 15 yes for Karl Wolfe. Karl Wolfe is appointed to the Interested Person Seat.

Review of Grants, Loans and Treaty Mitigation funded projects.Scott Wagner Operations Manager The report is posted on the website. Scott gave a very detailed report on the past and current grants to NSRAA. They have been a tremendous help to the organization and have paid for many needed capital improvements. NSRAA has received state legislative grants for the Hidden Falls hatchery deferred maintenance (3 grants) and one Hidden Falls grant for new construction. Medvejie has received grants for deferred maintenance and new construction. Haines has received a grant for new construction and Representative Thomas added additional funds for Skagway. Another grant has helped fund Coho and Chum program expansion. NSRAA has recently closed out chinook mitigation grants that paid for Deer Lake Expansion, Green Lake expansion and Medvejie lights.

Scott said $885,766 of grant funds were expended through September 2012 bringing the original balance from $5.2 million to $4.3 million. There are six open grants remaining. Scott filled in more details on all the work being done and what the status of the grant for the work is. The $900,000 grant for maintenance at Medvejie that came through Senator Stedman is accomplishing a lot of very much needed improvements to the buildings and raceways as well as getting engineering done to help improve water quality into the hatchery. NSRAA has received a total of $13.56 million in grants over the years. NSRAA staff plans to make an additional request to the Legislature this year. NSRAA usually does not take an administrative fee in order to get the maximum funding on the ground and to the projects.

HF Coho survival – Steve Reifenstuhl and Scott Wagner Dramatically poor survival of the Hidden Falls coho return prompted this informational report to the Board. Scott passed out a hand out titled “NSRAA 2012 Coho”. Staff reviewed the whole coho life cycle and release schedule and compared years to see if there was anything that the staff did that could account for the poor survivals. Deer Lake survival was better than HF. The staff also looked over data on whale predation; it turned out none of the HF release groups for this brood year survived well. The SWOW group had been performing poorly, but last year, did the best. Coho at Deep Inlet and Bear Cove release locations are surviving better than HF. Fry densities in the pens were high in the early rearing phases of some groups but that issue has been addressed. Region wide the wild coho survivals were poor. At least the broodstock goal at HF was met.

Motion 11/13/12(t) M/S Deborah/Brad. Approve the NSRAA Board of Directors Election Ballot MCWOO At Large Gillnet - Mike Nilsen F/V Carol Louise, and Evans Sparks Sr. F/V Samantha Dawn At Large Seine - Dean Haltiner F/V Island Pride At Large Seine - Sven Stroosma F/V Voyager

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At Large Power Troll - Eric Jordan F/V I Gotta At Large Troll - Richie Davis F/V West Bank Break for Lunch Reconvene at 1:30 PM

General Manager Evaluation The new General Manager Evaluation forms were distributed and filled out by the Board members. The President will go through all the evaluations and meet with the General Manager to discuss them. This is a new process for the Board and one that has been in development for five years.

Audit Report _ Deborah Lyons, Secretary Treasurer Deborah reported that the Audit Committee met in teleconference with Max Mertz of Elgee Rehfeld Mertz, LLC and Steve the General Manager, yesterday before the Board meeting began and that Max said the Audit went very smoothly. This is the first time that NSRAA has received a completely clean audit with no items to note in the letter to management and correction of an ongoing deficiency that had to do with NSRAA’s lack of technical ability to do the year end close. Now all balance sheet accounts are reconciled each month and there are quarterly closes and updates to the inventory. This is a wonderful milestone for the organization. This is the result of the accounting changes made by Steve and the staff with the help of Vicky of NP Solutions on the quarterly and year end reconciliations. Max pointed out some difficulties they have reconciling the reserve funds as currently structured and how they are treated in the Financial Statements. Max was recommending creating the Reserve funds, funding them and inflation proofing them at a specific account and then leaving them alone. The grants also complicate the accounting. Steve took over the discussion at this point and reviewed the Reserve Policy 2002-1(amended March 2011) in the Board book and explained that he had drafted a new policy for the Board to consider. Deborah said in her mind the Operational and Capital Reserve funds are dedicated at a certain level and the left over that had been put into the “New facilities and Production account” is more discretionary, does not have to kept at a certain level, is not inflation proofed, and is to be spent at the discretion of the Board. Steve recommends deleting the New or Increased Production Fund from the 2002-1 (as amended March 2011) Policy. Steve distributed the new draft policy NSRAA New Facilities & Production Policy 2012-2.

Motion 11/13/12(u) M/S Eric/Brian. To amend the Reserve Fund Policy 2002-1 as proposed by the General Manager. Motion carried with 19 in favor on a roll call vote.

Motion 11/13/12(v) M/S Eric/John. Adopt the New Facilities & Production Policy 2012-2 as recommended by the General Manager and as amended Section II. (1.) Change “or” to “and/or”. The Treasurer made the comment that the Board might be becoming too restrictive in defining what the funds are to be used for. The President said the Contingency account is available for discretionary items. Board member said the Board never gives up its discretion to spend funds from meeting to meeting. A Board member said he wanted to be able to point to the fund in order to communicate to fishermen that NSRAA is seriously pursuing new production. The motion carried on a roll call vote 18 in favor, 1 opposed and 1 abstention.

UFA Report, Steve Reifenstuhl Julianne Curry is the New Executive Director/Lobbyist for UFA. Mark Vinsel will stay as the office manager. The UFA office is in the fisherman’s building, a big blue building next to the State legislature. A NOAA official from WA DC was at the meeting, so UFA members visited the $100 million dollar fish hatchery. It is very high tech, automated and computerized. 95% of the water is recycled. They produce a lot of fish with a small amount of water. It is similar to what is done in Chilean fish farms. The cost of this single facility equals the entire cost of all the Alaska hatcheries combined. They have captive broodstock, which is not allowed elsewhere. These fish (rainbow) are either heat shocked or physically shocked so they can’t reproduce and put them into lakes. The operational cost is low now but may be significant in the future.

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ADFG Commissioner Cora Campbell and Stephanie Moreland, the Governor’s Fisheries advisor, were there and Steve asked about the ETJ issue. ADFG and the State are trying to communicate with Angoon and sampled the fishery for sockeye and took samples from other small sockeye systems. ADF&G are trying to determine which sockeye stocks are represented in the HF seine fishery.

Break 3:00 PM

Executive Session Motion 11/13/12(w) M/S Eric /Dave Moore Go into Executive Session for financial matters and personnel. MCWOO

Motion 11/13/12(x) M/S Sven/Botso. Out of Executive Session

Annual Bonus Motion 11/13/12(y) M/S Alan/Brian - Fund the staff bonuses at $84,000 with $12,000 to Steve and the rest to staff. The Board lauded staff for the clean audit, the safety improvements, the increased communications, updating the permits and all the work at the facilities, etc. The motion carried on a roll call vote with 19 in favor.

The Board set the spring meeting dates for March 5th and 6th

Letter from Don Byrd The President allowed a fisherman, Don Byrd, to address the Board about his letter and to discuss his concern about trolling behind the net at Hidden Falls. The Board gave him quite a bit of time to speak and asked questions to fully understand his concerns. During the discussion several misunderstandings he had about the staff were cleared up. The problem is, if too many boats, both commercial and charter are behind the net fishing, it is very difficult to obtain broodstock. NSRAA wants to provide fish to fishermen but our obligation is first to see that enough broodstock are taken to ensure future generations. The Board asked the staff to look into options to improve the situation

Spring Meeting Agenda Items Board members suggested items for the spring agenda

• Hidden Falls Coho Area – Resolve the issue of cost recovery/broodstock area access to handtrollers and sport charter.

• Troll access to increase share of hatchery salmon

Adjourn at 4:40 PM

___________________________ Deborah A. Lyons

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NSRAA Board of Director’s Meeting ~Fall 2012 SUMMARY OF BOARD ACTIONS

November 13-14, 2012 1308 SMC Rd., Sitka, Alaska

Motion 11/13/12(a) Move appointed seats to 1:30 after Haines report M/S Mitch/Brian Approve agenda as amended. A Board member mentioned that the members arriving late due to the plane delay should be given a chance to suggest changes to the agenda. MCWOO

Motion 11/13/12(b) M/S Mitch/Brian Approve minutes from 3-14-12 to3-16 -12 Board meeting. MCWOO

Motion 11/13/12(c) M/S Eric/Mitch. The NRSAA Board will not appoint people to appointed seats who have a commercial salmon permit or are the spouse of a permit holder. The motion failed with none in favor. Board members discussed the merits of candidates and the purpose originally of the conservation seat. A suggestion was made to eliminate the two seats and reduce the size of the Board Motion 11/13/12(d) M/S Botso/Mitch. Table both seats for nomination. 13 in favor, 6 opposed.

Motion 11/13/12(e) M/S Eric/Ritchie Adopt the draft Scholarship Policy and guidelines 17 in favor 2 opposed 2 abstain.

Motion 11/13/12(f) M/S Eric/John Barry Implement the assessment at Hidden Falls for 2013 and prepare a resolution of the Board. MCWOO The Assessment Program is working well. It has maintained regular fishery openings, made it easier to achieve broodstock and decreased NSRAA management time spent in the cost recovery operation.

Motion 11/13/12(g) M/S Alan/Brian Massey Set the Assessment Rate for 2013 at 20% for the reasons previously stated MCWOO

Motion 11/13/12(h) M/S Eric/Jim Moore Direct staff to pursue moving from a percent value assessment to flat rate assessment at Hidden Falls Chum Assessment Program. MCWOO

Motion 11/13/12(i) Mitch/Jim The NSRAA Board opposes the Sustainable Salmon Institute Hatchery at Warm Springs proposal because of potential negative impacts to existing hatchery and wild stock fisheries. The proposal also lacks clearly demonstrated benefits to fisheries and does not appear to be financially sustainable. Motion carried unanimously and without objection.

Motion 11/13/12(j) M/S Eric/Jim Moore NSRAA Board endorses the recommendations of the New Fisheries and Development Committee report. Motion carried on a roll call vote with 20 in favor and no opposed

Motion 11/13/12(k) M/S Richie/Deb Take the Board Appointments Agenda Item from the Table. Motion carried with 15 in favor, 3 opposed.

Processor Seat: Motion 11/13/12(l) M/S Eric/Mitch nominate Mike Forbush for Processor seat. Motion 11/13/12(m) Closed Eric/Botso. Mike Forbush is appointed to the Processor Seat and approved by unanimous consent. MCWOO

Native Organization Seat: Motion 11/13/12(n) M/S Eric/John Barry. Nominate Wade Martin for Native Organization.

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Motion 11/13/12(o) M/S Deb/James. Nominate Doug Chilton for Native Organization. Motion 11/13/12(p) Eric/ John Barry. Move to close nomination. MCWOO. During the nomination discussion the Board discussed a new way to endorse the candidates by holding a second vote to endorse the highest vote getter.

Motion 11/13/12(q) M/S John Barry/ Alan Andersen. The NSRAA Board will request a 2/3 majority vote by secret ballot to fill appointed seats. The Board has the option to vote twice. The Board would vote Yes or No on the highest vote getter. A Board member said he would like to see a 2/3 vote to endorse a possible Board member especially if they are a permit holder. The motion carried with 15 in favor and 2 opposed.

The Board returned to process of selecting the Native Organization seat. The President asked the Board to vote for the nominees. Vote by Ballot indicated 7 for Chilton and 14 for Martin. On the first vote a 2/3 majority was not attained, so the Board exercised the option for a second vote. A runoff vote to endorse Wade Martin was held and the Board members were instructed to vote Yes or No for Wade. The vote was 12 yes and 6 no. Wade Martin is appointed to the Native Organization Seat.

Conservation Seat: Motion 11/13/12(r) M/S Deb/Alan. Nominate the slate of Candidates: Floyd Tompkins, Karl Wolf, John Jensen, Will Bergman, Kim Elliot. MCWOO. Board members expressed their opinions about the candidates, with all speaking in favor of Mr. Bergman’s reputation, detailed knowledge of fisheries stocks throughout SE Alaska, and strong conservation ethic. The Board voted by ballot. The result of the vote was 17 for Will and 2 for Karl. Will Bergman is appointed to the Conservation Seat.

Interested Person Seat: Motion 11/13/12(s) Accept the slate of candidates. M/S Brian/Richie Rafe Allensworth, Cheyne Blough, Kelly Chapman, John Jensen, Kim Elliot, Karl Wolfe. MCWOO A vote by ballot was held. A run-off vote occurred between the two highest vote getters, Karl Wolf and John Jensen with 12 for Karl and 7 for John Jensen. The final vote endorsed 15 yes for Karl Wolfe. Karl Wolfe is appointed to the Interested Person Seat.

Motion 11/13/12(t) M/S Deborah/Brad. Approve the NSRAA Board of Directors Election Ballot MCWOO At Large Gillnet - Mike Nilsen F/V Carol Louise, and Evans Sparks Sr. F/V Samantha Dawn At Large Seine - Dean Haltiner F/V Island Pride At Large Seine - Sven Stroosma F/V Voyager At Large Power Troll - Eric Jordan F/V I Gotta At Large Troll - Richie Davis F/V West Bank

Motion 11/13/12(u) M/S Eric/Brian. To amend the Reserve Fund Policy 2002-1 as proposed by the General Manager. Motion carried with 19 in favor on a roll call vote.

Motion 11/13/12(v) M/S Eric/John. Adopt the New Facilities & Production Policy 2012-2 as recommended by the General Manager and as amended Section II. (1.) Change “or” to “and/or”.

Motion 11/13/12(w) M/S Eric /Dave Moore Go into Executive Session for financial matters and personnel. MCWOO Motion 11/13/12(x) M/S Sven/Botso. Out of Executive Session Motion 11/13/12(y) M/S Alan/Brian - Fund the staff bonuses at $84,000 with $12,000 to Steve and the rest to staff.

The Board set the spring meeting dates for March 5th and 6th

25

CONTENTS

Mission Statement……………….……………………..……..Page 28

Conflict of Interest Policy…………………………....….Pages 29-30

NSRAA Reserve Policy 2002-1 ……….……..…….....Pages 31 - 32

The Audit & Budget Committee Charters………......... Pages 33- 37

Cost Recovery Policies………………………………..……. .Page 38

Resolution 11-14-2012………………………………….........Page 39

Board Per Diem Rate……………………………..……...Pages 40-41

Organization Chart…………………………………...………..Page 42

Project Map……………………………………………........….Page 43

Spring 2013 Production Goals………………….……...……. Page 44

27

Mission Statement For The Northern Southeast Regional Aquaculture Association

The Northern Southeast Regional Aquaculture Association (NSRAA) is a private non-profit corporation created to assist in the restoration and rehabilitation of Alaska’s salmon stocks, and to supplement the fisheries of Alaska by utilizing artificial propagation to enhance the availability of salmon to all common property users, without adversely affecting wild salmon stocks. NSRAA is committed to promoting the wise use of Alaska’s salmon resources through education, sustainable harvest management, the maintenance, protection and promotion of high quality fish habitat, and the utilization of the highest scientific standards, in carrying out its mission.

28

Policy A: Conflict-of-Interest Policy

Statement of Policy

No board member of NSRAA shall use his or her position, or the knowledge gained there from, in such a manner that a conflict between the interest of the organization or any of its affiliates and his or her personal interests arises.

Each board member has a duty to place the interest of the organization foremost in any dealings with the organization and has a continuing responsibility to comply with the requirements of this policy.

The conduct of personal business between any board or committee member and the organization shall be disclosed.

Board or committee members may not obtain for themselves, their relatives, or their friends a material interest of any kind from their association with the organization (except under the NSRAA scholarship program).

If a board member has an interest in a proposed transaction with the organization in the form of a significant personal financial interest in the transaction or in any organization involved in the transaction, or holds a position as trustee, director, or officer in any such organization, he or she must make full disclosure of such interest before any discussion or negotiation of such transaction.

Any board or committee member who is aware of a potential conflict of interest with respect to any matter coming before the board or committee shall not participate in any discussion of or vote in connection with the matter.

Conflict-of-Interest Statement

I have read the statement of policy regarding conflicts of interest.

To the best of my knowledge and belief, except as disclosed herewith, neither I nor any person with whom I have or have had a personal or business relationship is engaged in any transaction or activity or has any relationship that may represent a potential competing or conflicting interest, as defined in the statement of policy.

Further, to the best of my knowledge and belief, except as disclosed herewith, neither I nor any person with whom I have or have had a personal, business, or compensated professional relationship intends to engage in any transaction, to acquire any interest in any organization or entity, or to become the recipient of any substantial gifts or favors that might be covered by the statement of policy regarding conflicts of interest.

29

(A) Without exception

(B) Except as described in the attached statement

Date:

Signature:

Print Name:__________________________________

30

Reserve Fund Policy Amended November 2012

NSRAA Reserve Policy 2002- #1 (Amended November 2012)

Goals and Objectives

The goals and objectives of Reserve Policy 2002-1 are:

I. To provide a long term funding mechanism to supplement the yearly operational budget income requirements and thereby make more fish available for the common property fisheries,

II. To fully fund the following Board established accounts (Accounts):

1. Operational Reserve Fund

2. Capital Improvement Fund

Implementation Strategy

I. Initially, all of the investment earnings from the Accounts shall be re-deposited to the Accounts and in the order shown below. Other excess funds may be deposited to the Accounts as the board determines appropriate. This shall continue until the Accounts are fully funded. Fully funded shall mean maintaining the Accounts at the following levels.

1. Operational Reserve Fund $5,500,000.00 dollars

2. Capital Improvement Fund $2,000,000 dollars

II. When the Accounts are fully funded the entire investment earnings ofthe Accounts and other excess funds shall be used to reduce the next year’s operational budget income requirements.

III. If the Accounts values fall below the fully funded target levels, theAccounts shall be restored to their target levels in accordance with Section I.

31

Reserve Fund Policy Amended November 2012

IV. The Board shall periodically adjust the target values as it deemsnecessary to inflation proof the Accounts.

V. Changes to this policy shall only be made in a manner consistent with the By-Laws of the Association.

32

THE AUDIT COMMITTEE CHARTER

OBJECTIVE

The objective for the Audit Committee is to assist the full Board of Directors in fulfilling its fiduciary responsibilities. Members of the Audit Committee should evaluate NSRAA’s compliance with laws, regulations, policies and procedures, and determine that NSRAA has adequate administrative, and operating and internal accounting controls. In addition, the Audit Committee should seek to give reasonable assurance regarding the integrity of financial and other data based on NSRAA activities, used by the Board of Directors, Association members, NSRAA staff, and the State of Alaska.

RESPONSIBILITES

The Audit Committee is responsible for:

• Choosing a firm to do the audit, discussing with the auditor any pre auditissues, and will review the financial statement and letter to themanagement making sure the items are addressed by the staff thenpresenting it in summary form to the board at the fall meeting.

• Receiving and reviewing the annual report from NSRAA’s externalauditors for accuracy, timeliness, and appropriate financial statementdisclosures.

• Reporting to the full Board at the first meeting following Audit completion.

• Reviewing the adequacy and effectiveness of key accounting and financialpolicies and any significant changes thereof.

• Determining that no restrictions are imposed upon audit scope.

• Evaluating management’s timely written response to audit findings andreports ensuring they have included a written plan to correct alldeficiencies noted in the audit report.

• Following up on implementation by management of auditrecommendations.

• Serving as a communication channel between the Board of Directors andNSRAA’s auditors.

• Reporting all significant items to the full Board on a timely basis.

33

The above responsibilities of the Audit Committee will be discharged though review of the audit reports and discussions with the auditors and NSRAA management.

COMMITTEE MEMBERSHIP

The Audit Committee shall consist of six directors. The President of the Board shall select the Chairman of the Committee. In determining the membership of the Audit Committee, the Board of Directors should provide for continuity of service.

COMMITTEE MEETINGS

The Audit Committee shall meet at least once annually with the Auditor. This meeting may be in person or via Teleconference. Written minutes shall be prepared for each meeting. The minutes shall include acknowledgement of receipt of audit reports, a discussion of the audit report findings, and ratification of recommendations. The Audit Committee shall make reports to the full Board on a no less than annual basis.

OTHER

The Charter of the Audit Committee shall be reviewed and approved at least once every two years by the Audit Committee and Board of Directors, respectively.

34

NSRAA Budget Committee Charter

1. PurposeThe Northern Southeast Regional Aquaculture Association (Association) BudgetCommittee (Committee) will assist the Board of Directors in its oversight responsibilitiesrelating to fiscal management. In furtherance thereof, the Committee will work with theGeneral Manager to:

1. Annually perform a detailed review of expense items and income projections;

2. Recommend approval of an annual operating budget;

3. Ensure the maintenance of an appropriate capital structure;

4. Review budgeted to actual figures; and,

In addition, in order to assist the organization in the proper and prudent management of its financial resources, the Committee will ensure that management employs personnel and systems capable of providing timely and accurate financial information to key decision-makers.

2. Committee MembershipThe Committee will be composed of the General Manager, the Board President, theSecretary/Treasurer (chair) and appointed members of the Board and public. Gear groupswill be equally represented on the Committee. It is anticipated that the Committee willalways include some members who possess skills in the disciplines of accounting,investment management, and capital structure/finance. It is also anticipated that based onthose skills, Committee members will be assigned areas of focus to ensure that importantfinancial topics are reviewed in sufficient depth by Board members. Ad-hocsubcommittees may also be appointed to inform the Committee.

3. Key ResponsibilitiesTo fulfill its purposes, the Committee shall:

1. Review and Approval of an Annual Operating Budget:Annually, the Committee will review the proposed annual operating budget for theensuing fiscal year as presented by Association management. After review andamendment, if necessary, the Committee will recommend a final operating budgetto the full Board of Directors for approval. The approved operating budget formallyconfers spending authority for operating costs to management, subject to thepolicies and procedures adopted by the Association. The approved operatingbudget may be amended, as appropriate, as long as funding for the amendment isalso dedicated at the time.

2. Review of the Financial Results:Annually, members of the Committee will receive and review financial statementsconsisting of the then current year-to-date: 1) statement of financial position, 2)income statement, 3) operating statement; and 4) key financial performance

35

benchmarks that the Committee deems relevant from time-to-time. These financial statements will be accompanied by a narrative from management highlighting any financial issues and, where necessary, management actions related thereto. The investment committee will report to the budget committee. The Investment committee oversees the management of organization-wide financial assets.

In addition, at its regularly scheduled fall meeting, the Committee will also perform an in-season review the status of the budgeted to actual income and expense projections, and will discuss issues that emerge from the review.

3. Maintenance of an Appropriate Capital Structure:From time-to-time, the Committee will direct management to undertake longer term financial planning to evaluate future financial needs. The Committee will review the underlying analyses and as sumptions, as well as the methodology utilized. The Committee will then recommend a capital expense budget to the Board.

4. Timely/Accurate Financial Information:The Committee will continually review and advise management regarding the form, content and frequency of financial information necessary for it to fulfill its responsibilities described herein. Further, to the extent necessary to inform decision-makers, the Committee may advise management regarding key financial information and performance indicators necessary to evaluate the various internal business units throughout the organization.

36

What’s The Difference?

Audit Committee vs. Budget Committee SHARED

AUDIT COMMITTEE RESPONSIBILITIES BUDGET COMMITTEE

The audit committee is The finance committee ensures The finance committee shall

authorized to consider matters that budgets and financial oversee the preparation of the

related to (a) the financial statements are prepared; the annual budget and financial

statements of the organization audit committee has oversight statements.

and other official financial for ensuring that reports are

information provided to the received, monitored, and

public; disseminated appropriately.

(b) the systems of internal The finance committee monitors The finance committee shall

controls, including overseeing financial transactions; the audit oversee the administration,

compliance by management committee makes sure things are collection, and disbursement of

with applicable policies and done according to policy and the financial resources of the

procedures and risk management with adequate controls. organization.

(e.g., for organizations that are

part of a national network,

annually reviewing whether the

organization meets the re

chartering requirements of its

national organization);

and (c) the annual independent The finance committee provides The finance committee shall

audit process, including the guidance about what can be advise the board with respect to

recommended engagement of done; the audit committee making significant financial

and receiving of all reports from ensures that independent decisions.

the independent certified public oversight occurs.

accountants. The audit

committee shall have such other

authority and perform such other

duties as may be delegated to it

by the board.

37

COST RECOVERY POLICIES March 2011

(Amended From November 2005)

NSRAA Policy #11-18-05C. NSRAA Board of Directors establishes this policy to deal with cost recovery income in excess of budgeted income goals. 50% of excess cost recovery income will go to reducing the following year’s cost recovery goal and 50% will go to reserve funds. Motion carried. 13 yes, 4 no. The intention with respect to reducing cost recovery is to use the formula percentage that split the cost recovery goal between HF & DI. Funds can go into either the operational or capital reserve.

Rescinded Spring 2011, NSRAA Board Policy #11-18-05A. The NSRAA Board creates a Hidden Falls chum cost recovery reserve policy. The purpose of the policy is to allow the NSRAA staff more flexibility in achieving cost recovery goals while balancing the need to generate revenues with the desire to provide for fishing opportunity. The budget committee will determine the schedule of repayment for any funds used from the cost recovery reserve. The motion carried. 15 yes, 3 no

Rescinded Spring 2011, NSRAA Board Policy #11-18-05B. The NSRAA Board creates a Deep Inlet chum cost recovery reserve policy. The purpose of the policy is to allow the NSRAA staff more flexibility in achieving cost recovery goals while balancing the need to generate revenues with the desire to provide for fishing opportunity. The budget committee will determine the schedule of repayment for any funds used from the cost recovery reserve. The motion carried. 15 yes, 3 no.

38

MAXIMUM PER DIEM RATES OUTSIDE THE CONTINENTAL UNITED STATES TRAVEL PER DIEM ALLOWANCES

COUNTRY/STATE: A L A S K A

PUBLICATION DATE (MM DD YY): 0 2 -0 1- 1 3

NOTES

1. Use the OTHER rate if neither the LOCATION nor MILITARY INSTALLATION is listed.

2. For other allowances that are based on per diem rates (e.g., TLE, TLA, TQSE, TQSA),see the appropriate rulesfor those allowances regarding what per diem rate to use.

3. The standard ONBASE INCIDENTAL RATE is $3.50 OCONUS wide.

4. When Government meals are directed, the appropriate Government meal rate, asprescribed in Appendix A, is applicable.

5. Per Diem Rate = Max Lodging + Meals (Local Meals, Proportional, or Government) +Incidental Rate (Local or OnBase)

Locality Seasons

(Beg-End)

Maximum Lodging

LocalMeals

ProportionalMeals

Local Incidental Footnote Footnote

Rate Maximum Per Diem

EffectiveDate

SITKA-MT. EDGECUMBE

05/01-09/30 209 94 53 23 326 01/01/2013

SITKA-MT. EDGECUMBE

10/01-04/30 169 90 51 23 282 01/01/2013

40

Travel Reimbursements

Per diems: better know the rules. A new IRS ruling holds a reimbursement program to be "abusive" when it routinely pays allowances above the per diem ceiling, does not have a process to track excess reimbursements, and does not include excess payments in the employee's income. If a reimbursement arrangement is abusive, all payments made under it, including valid ones, are subject to income and employment taxes.

Used properly, per diems for travel and related expenses let an employer treat

expense reimbursements as properly substantiated without requiring added information from

employees. The employer can deduct the payments as a business expense and exclude

them from employees' compensation for both income and employment taxes. To qualify for

the per diem rule, the reimbursements must not exceed the federal government's per diem

reimbursement rates.

When reimbursements exceed per diem rates, an employer has several options:

1. Include the excess in the employee 's gross income or,

2. Require the employee to either return the excess; or,

3. Provide full substantiation of the expense.

The following reimbursement program illustrates failure to comply.

Example: FreightCo employs long-haul truck drivers. Their wages and reimbursements for

meals and incidental expenses are both paid on a cents-per- mile basis for each day a driver

is away from home on business. The company had projected that, based on average daily

miles driven, reimbursements should not exceed the federal per diem rate.

The allowances actually paid drivers, however, routinely exceeded per diem rates. FreightCo did not require drivers to return excess reimbursements, did not have a process for tracking reimbursements or for knowing whether reimbursements exceeded per diem rates, and did not treat excess reimbursements as wages.

Held: All payments made under the reimbursement arrangement-including payments not in excess of per diems rates-are treated as made under a no accountable plan and included in gross income for both income and employment taxes.

The ruling is effective immediately.

Employers have time to set up proper procedures: IRS employees have been instructed not to enforce the ruling for periods ending on or before Dec. 2006, unless there is intentional noncompliance. [Rev. Rul.2006-56; 2006-46 IRB 874]

41

Northern Southeast Regional Aquaculture Association

Steve ReifenstuhlGeneral Manager

Chip BlairData Analyst

Scott WagnerOperations Manager

Jean MyerOffice Manager

Shirley WomackFacilitator

Carrington Gorman Project Manager

Coho Lake Rearing

Woody Cyr

Ilona MayoSecretary

Angie BowersInterim

Hatchery Manager

Roger VallionHatchery Projects

Coordinator

Ritch PhillipsAssistant Hatchery

Bill LydenSMC

Manager

TaggingSalmon Lake Weir

Adam OlsonHatchery Manager

Hidden Falls

Dan DemersAssistant Hatchery

Organization Chart FY'14Blake ConawayFish Culturist

Shirley WomackFacilitator Woody Cyr

Assistant Project Leader/Fish Tech

Travis BlakemoreMaintenance

Engineer

Ritch PhillipsAssistant Hatchery

Manager

Mike PountneyMaintenanceSupervisor

Matt Golden Project Leader

Bill ColtharpFish Culturist

Mike MartelloMaintenance

Engineer

Jason DagenhartMaintenance

Engineer

Tagging Crew

Salmon Lake Weir Crew

Dan DemersAssistant Hatchery

Manager

Benji Burbank Fish Culturist

Rebecca Olson Fish Culturist

Jess EllerFish Culturist

Fish Culturist Unfilled

Kenneth GrayMaintenance/

Fish Tech

42

XX

X

X

X

X

X

X

X

X

X

Incubation Boxes:Herman Creek17 Mile31 Mile

Lutak Inlet

Hobart Bay

Tuya LakeStikine River

Tahltan Lake

Limestone Inlet

Crescent LakeSweetheart Lake

Snettisham HatcherySpeel Lake

Gilbert Bay

Tatsamenie LakeTaku River

Trapper Lake

Boat Harbor

Port CamdenDeer Lake / Mist Cove

Plotnikof Lake /Port Banks

Shamrock Bay

Hidden FallsTakatz BayBaranof Lake

Medvejie, Deep InletSawmill Cove, Green Lake, Salmon Lake

Spawning Channels:Herman Creek24 MileConfluence Cannel

Chilkat Lake Chilkoot Lake

Gunnuk Creek HatcherySoutheast Cove

Sitka

Haines

Juneau

Wrangell

Ketchikan

Petersburg

Kake

Angoon

HoonahPelican

Excursion Inlet

.0 10 20 30 405

Miles

NSRAA Project Locations and Sites of Interest

Southeast_2006b © NSRAA43

(FY13) (FY14)

Eggtake Hatchery Release Site Species 2012 2013 Medvejie Bear Cove Chinook 2,829,000 1,729,000

Chum (Fed fry) 20,000,000 20,000,000 Coho 65,000 100,000 Pink (Un-Fed fry) 300,000 300,000

Deep Inlet Chum (Fed fry) 57,002,000 57,002,000 Coho 700,000 1,400,000

Hidden Falls Bear Cove Chinook 1,100,000 2,200,000 Kasnyku Chinook 888,000 900,000

Chum (Fed fry) 45,500,000 45,500,000 Coho 4,600,000 4,600,000

Mist Cove Coho 3,100,000 3,100,000 SE Cove Chum (Fed fry) 10,000,000 10,000,000 Takatz Chum (Fed fry) 55,500,000 55,500,000

Haines-Inc Box only 3,600,000 3,600,000 Grand Total 205,184,000 205,931,000

(FY13) (FY14)

Hatchery Site Species 2013 2014Medvejie Bear Cove Chinook 3,050,000 3,050,000

Chum (Fed fry) 18,331,880 18,331,880 Coho 50,000 50,896 Pink (Un-Fed fry) 285,000 285,000

Deep Inlet Chum (Fed fry) 52,247,602 52,247,602 Coho 215,000 515,872

Medvejie Total 74,179,482 74,481,250 Hidden Falls Kasnyku Chinook 650,000 650,000

Chum (Fed fry) 41,279,466 41,279,466 Coho 3,500,000 3,533,904

Mist Cove Coho 2,100,000 2,098,080 SE Cove Chum (Fed fry) 9,072,410 9,072,410 Takatz Chum (Fed fry) 50,351,876 50,351,876

Hidden Falls Total 106,953,751 106,985,735 Haines-Incubation Box only Chum (Un-Fed fry) 3,420,000 3,420,000

Grand Total 184,553,233 184,886,985

NSRAA Egg Take Goals

NSRAA Release GoalsRelease Year

Brood Year

SPRING 2013 PRODUCTION GOALS

44

1

Medvejie Hatchery Spring Project Plan 2013 Interim Hatchery Manager, Angie Bowers

Personnel 2013 Assistant Manager: Ritch Phillips Maintenance

Supervisor: Mike Pountney Maintenance Engineer: Mike Martello, Kenny Gray Fish Culturists: Matt Golden, Bill Lyden, Bill Coltharp, Blake Conaway

Medvejie Hatchery

Return Projections 2013 Chum 1,370,000 Chinook 30,000Coho

Bear Cove 3,000 Deep Inlet 7,000

45

Overview Weather conditions at Medvejie this year have been very mild so far. Water temperatures have been warmer by about 1.5 C in both fresh and salt water. Chum incubation survival is similar to last year. Losses are just under a million and fish are developing normally. Brood Year 12 Chinook incubation was very successful with no fungus issues and minimal losses. At present 3.6 million Chinook are being reared for the BY 12 Chinook programs. Salt water rearing of the BY11 Chinook has been challenging with smaller fish dropping out, but no major disease issues. Mortality to date is around 8.6% and fish are on schedule for a release size of 60g. The fish culture crew continues to work diligently to maintain good incubation and rearing practices while maintenance is always busy keeping equipment running and making improvements to facilities and equipment.

Programs:

Chum Deep Inlet will have a total of 51.8 million chums: 21.3 million Hidden Falls stock

and 30.4 million Medvejie stock. 18.2 million Chum salmon will be reared at Medvejie for brood stock 4.6 million of the 18 million broodstock will be reared as Late large Total number of fish to be released from Bear Cove and Deep Inlet is 70 million.

Chinook 2.9 million Chinook will be reared at Green Lake as yearlings 550k Chinook will be reared at Medvejie in fresh water throughout the winter:

400K released at the McGraw dock and 150K released at Medvejie. Total Chinook released from Medvejie 2.6 million

Coho 50k held and released at Bear Cove for brood stock. Total number of BY12 Coho eggs is 470k with a projected remote release

number of 395k, and brood stock for Bear Cove at 50k.

Facility & Maintenance Plans/Issues Continue to improve on eggtake upgrades Replace the siding on the Chum and Coho building. Construction of a duplex to increase on site housing. Utilize instream collector to increase water during high use times. Repair and recoat all rearing and brood stock raceways.

46

Overview Weather conditions at Medvejie this year have been very mild so far. Water temperatures have been warmer by about 1.5 C in both fresh and salt water. Chum incubation survival is similar to last year. Losses are just under a million and fish are developing normally. Brood Year 12 Chinook incubation was very successful with no fungus issues and minimal losses. At present 3.6 million Chinook are being reared for the BY 12 Chinook programs. Salt water rearing of the BY11 Chinook has been challenging with smaller fish dropping out, but no major disease issues. Mortality to date is around 8.6% and fish are on schedule for a release size of 60g. The fish culture crew continues to work diligently to maintain good incubation and rearing practices while maintenance is always busy keeping equipment running and making improvements to facilities and equipment.

Programs:

Chum Deep Inlet will have a total of 51.8 million chums: 21.3 million Hidden Falls stock

and 30.4 million Medvejie stock. 18.2 million Chum salmon will be reared at Medvejie for brood stock 4.6 million of the 18 million broodstock will be reared as Late large Total number of fish to be released from Bear Cove and Deep Inlet is 70 million.

Chinook 2.9 million Chinook will be reared at Green Lake as yearlings 550k Chinook will be reared at Medvejie in fresh water throughout the winter:

400K released at the McGraw dock and 150K released at Medvejie. Total Chinook released from Medvejie 2.6 million

Coho 50k held and released at Bear Cove for brood stock. Total number of BY12 Coho eggs is 470k with a projected remote release

number of 395k, and brood stock for Bear Cove at 50k.

Facility & Maintenance Plans/Issues Continue to improve on eggtake upgrades Replace the siding on the Chum and Coho building. Construction of a duplex to increase on site housing. Utilize instream collector to increase water during high use times. Repair and recoat all rearing and brood stock raceways.

47

MEDVEJIE HATCHERY BUDGET FY '14

ACCOUNT TITLE Subtotal FY '14 Subtotal FY '13 DIFF.

7001-7016 PAYROLL/BENEFITS/TAXES 722,544 $663,644 58,900

7019/200 CONTRACT LABOR 41,000 33,000 8,000transfer chum eggs from hf 4,000 4,000transfer chum fry to di - 20 @ $620/trip 12,400 10,400tow barge to Deep Inlet & return 2 * $2000 4,000 3,000load feed on barge 1,800 1,800transfer netpen complex to/from di 2 * $2500 5,000 3,600sand green lk. rd. (contingency) - $150/.5 mile 900 900transfer food & pens to/from GL 900 800green lake smolt to MCIF 5,500 5,500tansfer pens/fish to Halibut Point Marine 6,500 3,000

7023/200 SUPPLIES 56,112 64,757 (8,645)drugs 6,775 13,815vaccine (see details) 12,116 15,610chemicals (includes liquid O2) (see details) 6,849 6,467lab chemicals 600 600NOPAD filters 200 200office supplies 1,000 800lumber inventory 1,500 1,500polyethylene inventory 1,500 1,500PVC inventory 1,700 1,700aluminum stock 2,500 2,500fastners 1,250 1,250rigging/ net weight replacement (ropes & shackles etc.) 2,000 2,000hoses & fittings 1,000 1,000tools 800 500eggtake/releases 5,800 5,800DI an GL Per Diem 7,723 6,715general hatchery 2,400 2,400evaluation 400 400

7024/200 POSTAGE 1,000 1,000 01,000 1,000

7025/200 FISH FOOD 831,952 805,476 26,476medvejie chinook 44,055 45,129green lake chinook (includes TM200 ) 340,327 324,912medvejie & DI LL 106,778 106,066medvejie & DI chum 241,095 239,0479 million SJC chum 41,096 40,746coho (broodstock only) 3,466 3,246shipping 55,135 46,329

7026/200 EQUIPMENT RENTAL 1,000 1,000 01,000 1,000

7027/200 FACILITY AND EQUIPMENT REPAIR 17,500 17,500 0equipment repair 10,000 10,000facility repairs 4,000 4,000home repairs 1,500 1,500tires for hatchery trucks and hatchery equipment 2,000 2,000

7031/200 UTILITIES 88,519 74,953 13,566 electricity (see comments) 55,000 48,000 heating oil (homes) 5,400 3,600 diesel fuel (gen. Trucks and forklift) 12,766 11,978 diesel fuel for DI aeration - 600 gal. 1,800 1,800 gasoline ( boats, feeders,ect) 12,078 7,500 lubricants 875 875 dump Fees 600 1,200

48

MEDVEJIE HATCHERY BUDGET FY '14


7032/200 TELEPHONE 4,200 4,200 0 phone service (land line) 720 720 cell phones 1,800 1,800 starband service 1,680 1,680

7041/200 INSURANCE 24,000 24,000 024,000 24,000

7046/200 DUES, FEES, SUBSCRIPTIONS, PERMITS 13,685 13,685 0 tide lands 4,700 4,700 city lease 2,700 2,700 deep inlet 4,000 4,000 vehicle license and moorage fees 600 600 other 500 500 discharge permit 390 390 seafood processing fee 795 795

7066/200 TRAVEL/CONFERENCE 1,500 1,500 0 1 conference 1,500 1,500

7080/200 EQUIPMENT 20,000 17,500 2,500 misc. equip. as needed 3,500 $2,500 replacement nets annually 8,500 $8,500

Two chum ponding RW liners 2,500 $4,000Honda SS 2" and High PSI pumps 2,000 $2,000Kicker for New Boat 3,500 $500

TOTAL MEDVEJIE OPERATING BUDGET $1,823,012 $1,722,215 $100,798

8200 CAPITAL PROJECTS 133,000 125,000 8,000Green Lake nets (5) 22,500Vaki Macro counter 62,000Work skiff boat trailer 6,500Back-up, stand alone diesel water pump 42,000

TOTAL MEDVEJIE BUDGET W/CIP $1,956,012 $1,847,215 $108,798

49

Medvejie Eggtakes FY14

Species Brood Year Eggtake Date ProgramEggtake

(millions) Total (millions)

Deep Inlet 24.00

Deep Inlet-SSSC 9.00

Bear Cove 20.00Pink BY13 Sep-13 Bear Cove 0.30 0.30

Bear Cove 0.10

Sawmill Creek 1.40

Green Lk Yrlng 2.95

Medvejie Yrlng 0.65Total 58.40

Medvejie Releases FY14

Species Broodyear Program LocationRelease

(millions)Total per location

Size @ release

DI - from MCIF Deep Inlet 28.41

From HF Deep Inlet-HF 21.01

MCIF Brood Bear Cove 18.30 18.30

Total 67.72

Pink BY13 MCIF Bear Cove 0.27 0.27 0.3 grams

GL Yrlng Bear Cove 2.51 2.51 65 grams

MCIF Yrlng Bear Cove 0.15 0.15

MCIF Yrlng HPM 0.40 0.40Total 3.06

2/4 grams

22 grams

49.42Chum

Chinook

Coho

BY13

BY12

BY12

SCH Broodstock Bear Cove 0.05 0.05

45 grams

Sep-13

Aug-13 3.60

Chum

Chinook

53.00BY13

BY13

Coho Nov-13 1.50BY13

53.0

0.3

1.5 3.6

Medvejie Eggtakes (millions)

Chum Pink Coho Chinook

42%

31%

27%

Chum Release

Deep Inlet Deep Inlet-HF Bear Cove

82%

5% 13%

Chinook Release

GL Yrlng MCIF Yrlng HPM

50

1

Sawmill Creek Hatchery Spring Project Plan 2013 Hatchery Manager, Bill Lyden

Personnel 2013

Manager: Bill Lyden

Fish Culturist/Maintenance: Blake Conaway, Kenny Gray

51

Overview: Brood year 2011 parr were transferred in two installments to Sawmill Creek Hatchery on December 11, & 17. Fish health is excellent and fish continue to meet/exceed projection despite the constant 2.4 degreewater. These fish were approximately 18.5g at their most recent sample weight.

Brood Year 2012 eggs were transferred in 3 installments to Sawmill Creek January 11, 23, & 31. Egg survival was excellent. Hatch is anticipated to begin late February, and ponding is projected to be early to mid May.

A recent assessment of the dolphin pilings at SCH determined that they can be used for short term moorage. We will borrow the HDPE ponding line and fish pump from Medvejie to load the transport vessel in May.

The expectation is that the BY12 fry will take advantage of natural compensatory growth patterns this spring/summer; however, there is money in the FY14 budget to install incubation heaters. Heaters will allow earlier ponding and in turn, supplementary spring growth for the BY13 eggs. Heaters are also a necessary component to otolith marking.

All six start tanks have been installed in the warehouse. The tanks should work well, however the floor drain is not large enough to clean or to maintain the raceways at optimum flow. This is a serious limiting factor in the holding capacity/rearing capabilities of the tanks.

Phase 1 of the backup water connection project is complete. HDR Engineering is currently specking out a pressure relief valve to complete the project. These funds will also be available in FY14.

The maintenance department has done an exceptional job and continues to be quite creative in assisting staff with the development of new ideas and fish culture techniques.

Fish Culture:

159,120 BY11 Salmon Lake stock parr on site.o Scheduled for transport/release to Deep Inlet May 2013.

395,705 BY12 eyed eggs currently on site. BY13 egg-take goal: 600,000 green eggs.

Looking Ahead:

We are going to be creative with how we clean the start tanks this year, but may need to considera catchment vault similar to that of the Medvejie “R Ponds” moving forward.

The condition of the outdoor raceways remains the same, and will need to be addressed. There will be money in the FY14 budget to complete a ponding line at SCH for next year. We are researching the possibility of an aeration system to supplement rearing and grow out

ponds with ambient air. This is a system that has proven effective in Canadian facilities, andcould be a cost effective approach to supplemental oxygen as Sawmill Creek advances tomaximum holding capacity.

We are considering several rearing and incubation possibilities for the 2014 Blue Lake Hydro shutdown. Some of which include, production shift to Medvejie and an in-stream diesel pump atSawmill Creek.

Complete backup water connection project.

52

SAWMILL CREEK HATCHERY BUDGET FY '14


7001-7016 PAYROLL/BENEFITS/TAXES $136,435 $88,723 $47,712

7019/285 CONTRACT LABOR 3,600 620 2,980 transfer coho fry to di - 4 @1,500 + fuel 3,500 520

supplemental feed to di - 0

transfer netpen complex to/from di - 0

transport adult coho to MCIF from DI/SL 100 100

7023/285 SUPPLIES 20,809 13,373 7,436

7024/285 POSTAGE 200 200 200 200 0

7025/285 FISH FOOD 24,423 12,086 12,337 coho - BY12 for Deep Inlet 17,128 8,811

coho - BY13 for Deep Inlet 3,883 1,923

shipping 3,413 1,352

7026/285 EQUIPMENT RENTAL 500 500 500 500 0

7027/285 FACILITY AND EQUIPMENT REPAIR 3,500 1,000 2,500 equipment repair - Salmon Lk 1,000 1,000

facility repairs 2,500 500

7031/285 UTILITIES 4,360 4,360 0 electricity (see comments) 3,600 3,600

heating oil - 0

gasoline & fuel (truck, boats, equipment) 760 760

7032/285 TELEPHONE 1,200 1,200 0 phone service 400 400

DSL 800 800

7041/285 INSURANCE 6,200 6,200 06,200 6,200

7046/285 DUES, FEES, SUBSCRIPTIONS, PERMITS 1,800 1,800 0 tide lands - 0

city lease 1,000 1,000

deep inlet - 0

salmon lake National Forest Special Use Permit 800 800

7066/285 TRAVEL/CONFERENCE 1,000 1,000 0 1 conference 1,000 1,000

evaluation - 0

7080/285 EQUIPMENT 15,945 7,450 8,495

TOTAL SAWMILL CREEK OPERATING BUDGET $219,972 $138,513 $81,459

8285 CAPITAL PROJECTS 104,000 14,000 90,000JM8 pick machine (shared with Medvejie) 14,000

PRV project 90,000

TOTAL SAWMILL CREEK BUDGET W/CIP 323,972 - 152,513 171,459

53

Sawmill Creek Eggtakes FY14 (taken at MCIF)

Species Brood YearEggtake

Date ProgramEggtake

(millions)Coho BY13 Sep-13 Deep Inlet 1.40

Sawmill Creek Hatchery Coho Releases FY14

Species BroodyearRelease

Date Location Release Size @ releaseCoho BY12 May-14 Deep Inlet 380,000 20 grams

54

Sawmill Creek Hatchery/Salmon Lake Weir

Overview Salmon Lake weir will continue to be operated to assess the straying rate of Medvejie and Sawmill Creek Hatchery released coho of Salmon Lake stock. In 2012 less than 0.2% of the Salmon Lake return through the weir was of hatchery origin. Salmon Lake will operate as a backup source of brood stock for Medvejie Hatchery.

FY14 Mark/Recapture Operations Operate weir

o Install weir and setup camp starting July 23rdo Operate weir August 1st -Oct. 31st

o Count all fish passing through weiro Each coho at the weir will be counted, marked and have various biological

parameters recorded Recapture coho in-lake using beach sein or hook & line methods to estimate true

escapement number Close camp and break down weir November 1st-7th

Capture and tag wild emigrating coho smolts spring of 2014

Site Projects Rebuild portions of cabin to better accommodate the project Install water system Rebuild sampling station Change weir float panel system to a rear adjustment system

55

Hidden Falls Hatchery Spring Project Plan 2013 Hatchery Manager: Adam Olson

Personnel 2013 Assistant Manager: Dan Demers

Maintenance Engineers: Jason Dagenhart, Travis Blakemore

Fish Culturists: Rebecca Olson, Benji Burbank, Jessica Eller

Hidden Falls Hatchery

Return Projections 2013 Chum 1,315,000 Chinook 12,300 Coho 135,000

57

Overview Hidden Falls has enjoyed a relatively mild first three months of winter. Less than 7 feet of snow has

fallen thus far, giving staff hopes for an early spring. The staffs’ diligence with last season’s eggtakes has produced great quality eggs and fry for all species. Both Chinook and Coho saw unprecedented survivals of over 95%, and with the best survival to fry for Chum in the last 7 years, Hidden Falls staff will be putting over 100 million fry to saltwater this spring. Saltwater overwinter rearing has had its ups and downs this year. The Chinook are performing well and are at the largest size to date in the history of the program. However, the experimental SWOW Coho program has experienced significant mortality due to Bacterial Kidney Disease (BKD). The disease was most likely passed onto the fish from the adult broodstock and is exacerbated by the stresses of overwintering in saltwater. The disease is difficult to treat and there is no cure. During BY13 egg takes staff plans to screen the broodstock for this group to eliminate any vertical transmission of the disease. Thankfully for the broodyear 2012 SWOW Coho, the instance of infected broodstock was only 1.7%. Despite the challenges faced with this program, the smolts are still at the largest size in the history of the project.

Programs:

Chum Advanced development schedule utilized for all groups of Chum. Hidden Falls 4.0 fry were ponded

on Feb 7th, the earliest date since 2003. Hidden Falls regulars ponded Feb 12-17 New netpens for the Southeast Cove project were assembled in mid January. The fry will be

transferred from Hidden Falls in late February Takatz will receive just under 50 million fry this year, the largest fry stocking to date

Chinook BY12 Chinook incubation went smoothly, the fry were ponded on February 1st

The overwintering BY11 Chinook are at the largest size in the history of the program at 44g 2/3 of the Chinook are being fed daily to mimic the feed trial conducted last year. If the results are

similar we should be releasing 60,000 more smolt this spring.

Coho Incubating 7.4 million BY12 Coho, 2.8 million will be transferred to Deer Lake next May Due to the use of the heated recirculation system, the SWOW group will be ponded mid February,

the Deer Lake group in mid March, and the HF group early April BKD issues are a challenge with the BY11 SWOW Coho; mortality is 4X higher than the historical

average at this time. Overwinter losses have been low for the BY11 FWOW Coho and the fish areat a good size to enter the spring.

Facility & Maintenance Plans/Issues Work is scheduled to begin on the pier/dock project as early as March with the removal of the

bulkhead and installation of the concrete tide ramp. New concrete dock floats and a 3Ton cranehave been purchased and are currently being fabricated.

Persistent leaks in the hydro building roof have prompted a new design and construction to becompleted this spring.

Front round ponds will be fully integrated into the alarm system with new wiring and sensors A new bubbler system, modeled off of the MCIF design, will be plumbed and installed this spring

for the Kasnyku Chum rearing complex

58

HIDDEN FALLS BUDGET FY '14FY '14 FY '13


7001-7016 PAYROLL-BENEFITS-TAXES $724,086 $694,714 $29,372

7019/600 CONTRACT LABOR 42,080 36,280 5,800 2 Tender/boat transfers @ $5000 ea 10,000 10,000 2 Takatz barge/pen tow @ $3000 6,000 6,000

18 fry trans to Takatz @ $560, 2 HFtoSIT @ $1000 12,080 8,280 Barrier seine in & out 14,000 12,000

7023/600 SUPPLIES 82,390 75,295 7,095 Office 2,000 2,000 Hatchery 25,115 21,130 3,985 Formalin (16 barrels @ $325 + $360 shipping) 5,560 5,560 Argentyne (1 @ $790 barrel + $90 shipping) 880 880 Virkon Aquatic (4 10# tubs) 350 350 n ets,gloves,towels,blades 2,000 2,000 chinook vibrio vaccine (25 @ $75/ltr+$200 shipping) 2,075 1,950 swow coho vibrio vaccine (30 @ $75/ltr+$200 shipping 2,450 0 chum 4.0 vibrio vaccine (80L @ $75/ltr+$200 shipping) 6,200 5,240 coho erythromycin misc. fish culture supplies 3,000 3,000 Bunkhouse supplies 1,500 1,100 Roe shed supplies 300 300 Domestic Water supplies 300 250 Wastewater monitoring: 500 500 domestic 0 0 hatchery 0 0 Equipment and Operation 28,925 26,463 2,462 gas (2,500gal @ $4.30/gal) 10,750 10,625 diesel (3,250 gal @ $4.30/gal) 13,975 11,688 pr opane (700lbs @ $1.00/lb) 700 650 l ubricants and filters: 2,000 2,000 Ash disposal/Landfill 1,500 1,500 Hardware and tools 5,500 5,500 Evaluation 0 0 Materials: 12,750 12,750 aluminum/steel 4,000 4,000 lumber 3,000 3,000 pvc 2,000 2,000 HDPE 750 750 paint 500 500 r ope & wire rope 1,500 1,500 electrical 1,000 1,000 Employee Food 6,100 5,452 648 Misc 2,000 2,000

7024/600 POSTAGE 900 900 0 Office 200 200 Pathology samples; 400 400 fish heads-tag lab 300 300

59

HIDDEN FALLS BUDGET FY '14FY '14 FY '13


7025/600 FISH FOOD 878,333 785,222 93,111All chum, coho & chinook 878,333 785,222 chum (51 million fish @ 2 grams) - Takatz 233,964 220,825

chum (42 million fish @ 2 grams) - HF 209,520 195,250

coho (3.5million @ 21g and 24g, 2.9million @ 1g) 230,089 191,169

chinook (650k fish @ 70 grams) 115,108 82,551

4.0 chum (12.25 million fish 2 to 4g) - Takatz 53,502 61,265

4.0 chum (7.5 million fish 2 to 4g) - HF 36,150 34,163

7026/600 EQUIPMENT RENT/LEASE 3,000 3,000 03,000 3,000

7027/600 FACILITY REPAIR/MAINT 36,000 36,000 036,000 36,000

7031/600 UTILITIES 2,200 1,200 1,0002,200 1,200

7032/600 TELEPHONE 5,000 5,000 05,000 5,000

7036/600 PRINTING AND ADVERTISING 750 750 0750 750

7041/600 INSURANCE 39,000 39,000 039,000 39,000

7046/600 DUES, FEES, SUBSCRIPTIONS 2,250 2,000 2502,250 2,000

7066/600 EMPLOYEE TRAVEL 63,680 58,690 4,99063,680 58,690

7080/600 EQUIPMENT 15,800 16,400 (600)Acoustic Bird Deterrent System 750 2,500Plasma Cutter 4,500 4,900Transfer Hose Replacement (HDPE,flex) 3,000 2,500Airline Refit SW Pen Mort System 1,000 4,300HDPE Butt Fusion Machine (DL split) 4,500TH255 Pallet Fork Replacement (HD) 800Material Handling (pallet jack, hand truck) 1,250

TOTAL HIDDEN FALLS OPERATING BUDGET $1,895,469 $1,754,451 $141,018

8600 CAPITAL BUDGET 104,000 90,000 $14,000John Deere Diesel UTV 14,000Electroanethesia Unit replacement 40,000New Lagoon Barrier Net 7,00050hp 4 stroke Yamaha for Tub 7,500Poor Cond. 1/8" Chum Net Replacement (6) 30,000Electric Pallet Jack (barge replacement/inc backup) 5,500

TOTAL HF CAPITAL/OPERATING BUDGET $1,999,469 $1,844,451 $155,018

60

Hidden Falls Eggtakes FY14

Species BroodyearEggtake

Date ProgramEggtake

(millions) Total (millions)

Kasnyku 45.50

Deep Inlet 24.00

Takatz 55.50

SE Cove 10.00

Hidden Falls 4.60

Deer Lk 3.10BY13 Aug-13 Hidden Falls 0.90BY13 Aug-13 MCIF 2.20

Total 145.80

Hidden Falls Releases FY14


Date ProgramRelease

(millions) Size @ release

Kasnyku 41.30

Takatz 50.40

SE Cove 9.07 4 grams

Total 100.77

Coho BY12 May-14 Hidden Falls 3.50 22 grams

Chinook BY12 May-14 Hidden Falls 0.65 50 gramsTotal 4.15

135.00

Chum BY13 May-14

7.70

2/4 grams

Nov-13BY13

3.10

Chum

Coho

BY13 Jul-13

Chinook

45.5

24.0 55.5

10.0

Hidden Falls Chum Eggtakes (millions)

Kasnyku Deep Inlet Takatz

41% 50%

9%

Chum Release

Kasnyku Takatz SE Cove

4.6 3.1

Hidden Falls Coho Eggtakes (millions)

Hidden Falls Deer Lk

61

Coho Lake Rearing Spring Project Plan 2013 Carrington Gorman, Project Manager

Personnel 2013 Assistant Project Manager: Woody Cyr

Seasonal Fish Culturist: Jeff Serio

Deer Lake/Mist Cove

Return Projections 2013 Coho 124,000

63

Overview Crew at Deer Lake had a much less stressful winter than the previous year. The winter lake release occurred on the 9th of December, over a month earlier than the previous year due to earlier freeze over the majority of the lake. The release went very smoothly with only twenty-two of the ~1.95 million fingerlings trying to out-migrate. The other ~800,000 fingerlings are currently being held between four submerged low-density pens with cover nets in the same fashion as the previous year. There have been three monitoring trips where the pens have been raised, fed, sampled, and checked for morts. The fingerlings in the pens are currently looking healthy with low mortality rates.

Over-Winter Rearing 2012-13 Stayed at Deer Lake until December 17th, freezing temps and medium

snow ~1.95 million fingerlings released into lake at a size of 19.85 grams ~800,000 held over between four submerged pens at 19.85 grams

2013 Smolt Outmigration Plans Install weir early April to maximize lake emigration interception Pump remaining smolts 3rd week in May Hold and feed emigrant groups for ~1 week before “trickle” release in Mist

Cove

2013 Fry Transports ~2.8 million fry at a size of ~.9 grams will be transported from Hidden Falls

at the end of May using Ward Airs Turbine Otter

Summer and Fall Rearing Two groups of fry; one group at low density for overwinter in net pens,

second group for December/January lake release Rear BY12 fry for optimal growth with a goal of 18 grams by Nov.

Over-Winter Plans Remain at Deer Lake year round or until lake freeze-up is anticipated Release approximately 58% of fingerlings into lake for over winter Post release split net pen populations to increase the number of over-

winter net pens from four pens to six, still holding ~200,000 per pen (1.2million total).

Site Projects Emigration pipeline improvement Weir reinforcement

64


7001-7016 PAYROLL-BENEFITS-TAXES 192,079 $189,882 2,197

7019/400 CONTRACT LABOR 64,308 72,572 (8,264) Fry stocking flights 27,563 26,250 Helicopter sling supplies to Deer Lake 18,689 26,250 Fish food, fuel and freight shipping to Mist Cove 18,056 20,072

7023/400 SUPPLIES 31,925 31,500 425 Camp food 15,000 15,000 Gear and supplies 8,000 8,000 Petroleum products 8,925 8,500

7024/400 POSTAGE 1,000 1,000 0

7025/400 FISH FOOD for 2.8 million 146,721 134,381 12,340

7027/400 EQUIPMENT REPAIR/MAINTENANCE 4,000 3,000 1,000

7031/400 UTILITIES 1,200 1,200 0 Starband satellite internet 1,000 1,000 misc., dump, etc. 200 200

7032/400 TELEPHONE 2,000 3,500 (1,500)

7041/400 INSURANCE 5,500 5,500 0

7046/400 PERMITS, DUES, FEES, AND SUBSCRIPTIONS 5,000 12,000 (7,000)

7066/400 TRAVEL - EMPLOYEE 27,690 27,025 665 Air travel to and from field site, 42 trips 26,690 26,025 Conferences/meetings/training/Costco 1,000 1,000

7080/400 EQUIPMENT 12,980 3,000 9,980water pump 1,000 1,000Transfer tote 2,831 1,200Underwater monitoring camera 3,085 800gas powered air compressor/mort suckers 2,359Batter bank replacement for treehouse 600Deep water temperature gage 2,155Sampling scales 950

TOTAL COHO LAKE REARING OPERATING BUDGET $494,404 $484,560 $9,844

8400 CAPITAL PROJECTS 39,754 7,900 31,854Netting 23,786Pipeline improvement 11,200Butt Fusion Welder(split w/Hidden Falls) 4,768

TOTAL COHO LAKE REARING CAPITAL & OPERATING BUDGET $534,157 $492,460 $41,697

COHO LAKE REARING BUDGET FY '14

65

Deer Lake Coho Releases FY14


Date Age Release Size @ releaseBY11 Age II 80,000 35 grams

BY12 Age I 2,100,000 20 grams

Total Smolt Production 2,180,000

Coho May-14

4%

96%

Coho Release

Age II Age I

66

CONTENTS

Haines Project……………………………………...…...Pages 69-72

Tagging……………………………………………………....…Page 73

Diving………………………………………………………....…Page 74

67

Haines Spring Project Plan 2013

Personnel 2013 Project Culturist: Benji Burbank

Return Projections 2013 Chum 20,000

69

Overview The focus in Haines will be to continue to attain the eggtake goals for Herman Creek, 31-mile and 17-mile streamside incubators. In addition staff will collect otolith samples from returning adult chum to look for marks from fry produced at the 17-mile site. Spawning channels will be intensively managed for maximum utilization and survival.

Streamside Incubation Collect 1.6 million chum eggs and seed into Herman Creek incubators. Collect 800,000 chum eggs and seed into 31-mile Creek incubators. Collect 1.2 million chum eggs and seed into 17-mile incubators.

Spawning Channel Management Restrict and manage access to the Herman Creek and New Herman

Creek spawning channels to provide optimum utilization without redd superimposition.

Site Projects Evaluate potential new spawning channel locations using grant funds Evaluate condition of roof of office building due to carpenter ant

infestation.

70

HAINES BUDGET FY '14

ACCOUNT TITLE Subtotal FY '14 FY '13 Diff.

7001-7016 PAYROLL-BENEFITS-TAXES 31,261$ $26,684 $4,577

7019/500 CONTRACTUAL 1,900 1,700 200Winter Caretaker 1,400Snow Removal 500

7023/500 SUPPLIES 4,750 4,580 170 miscellaneous supplies 1,000 camp food 1,500 fuel/oil 1,500 vehicle/boat upkeep 750

7024/500 POSTAGE AND FREIGHT 150 150 0

7026/500 EQUIPMENT RENT/ LEASE 0 0 0

7027/500 EQUIPMENT REPAIR / MAINTENANCE 500 500 0

7031/500 UTILITIES 3,900 3,900 0

7032/500 TELEPHONE / INTERNET 1,600 1,600 0

7041/500 INSURANCE 6,600 6,600 0

7046/500 DUES AND FEES 1,000 1,000 0

7047/500 PROPERTY TAX 1,620 1,620 0

7066/500 TRAVEL 3,680 2,800 880Sitka-Haines-Sitka,8 @ $460 3,680

7080/500 EQUIPMENT 300 300 0

TOTAL HAINES/CHILKAT OPERATIONS BUDGET 57,261$ $51,434 $5,827

8500 CAPITAL PROJECTS 10,000 0 10,000Roof-Evaluation, Ant extermination 10,000

TOTAL HAINES/CHILKAT CAPITAL/OPERATIONS BUDGET $67,261 $51,434 $15,827

71

Haines Eggtakes FY14

Species BroodyearEggtake

Date Program Eggtake Total (millions)

Herman Ck 1,600,000

31-mile 800,000

17-mile 1,200,000

Haines Releases FY14


Date Program Fry Release Size @ release

Herman Ck 1,520,000

31-mile 760,000

17-mile 1,140,000

Herman Ck 400,000

New Herman Ck 800,000

24-mile 800,000Total 5,420,000

Chum Incubation Boxes

BY13 Oct-12 3,600,000

Chum Spawning Channels

BY13 Mar-14 0.3

Chum Incubation Boxes

BY13 Mar-14 0.3

45%

22%

33%

Haines Chum Eggtakes

Herman Ck 31-mile 17-mile

63%

37%

Chum Releases

Chum Incubation Boxes Chum Spawning Channels

72

TAGGING BUDGET FY '14FY '14 FY '13


7011-7016 PAYROLL - TAXES $40,931 $33,065 $7,866

7023/150 SUPPLIES 64,850 60,100 4,750 Tags: 500K @ 100/1000 50,000 50,000 scissors (fin clipping) 350 350Salmon Lk. field gear 1,500 500 5 pr. tag injector drive rollers 1,000 1,000 m isc. 3,000 1,500 food: HDN / Deer Lk./ Salmon Lk. 3,000 3,000 wire tag cutter( 1) 2,000 2,000Stock aluminum (fabrication) 2,000 250 boat fuel to / from HDN , Deer Lk. & Salmon Lk. 2,000 1,500

7066/150 TRAVEL 5,500 6,700 (1,200)

Flights to HDN 3,000 4,000Flights to / from Deer Lk. 1,500 1,500Tag meeting / conference 1,000 1,200

TOTAL TAGGING OPERATING BUDGET $111,281 $99,865 $11,416

8150 CAPITAL PROJECTS $0 $0 0

Total Tagging Operating & Capital Budget 111,281$ 99,865$ $0

73

DIVING BUDGET FY '14


7019/170 CONTRACT LABOR $5,200 $5,092 $108 dive physicals10@ $250 2,500 2,500 annual inspections regulators 18@ $100 1,800 1,800 tanks, visual 12 @ $25 ea. 300 192 hydro 3 @ $50 150 150 compressor air sampling 450 450

7023/170 SUPPLIES 5,300 5,440 -1400 140

compressor filters 300 300 misc.(general) 1,500 1,500 training 2,500 2,500 Dry Suit Repairs 1,000 1,000

7080/170 Equipment 3,400 2,000 0Gloves,knives, hoods, masks, fins,gauges 1,500 2,000

Underwater drop camera 1,5001 Bouyancy Compensator 400

TOTAL DIVING OPERATING BUDGET $13,900 $12,532 $1,368

8170 CAPITAL EQUIPMENT 1,700 11,700 (10,000)1 Dry Suit & undersuit 1,700

TOTAL DIVING BUDGET $15,600 $24,232 ($8,632)

74

Evaluation Project Plan 2013

Leader: Chip Blair

Overview

NSRAA’s evaluation program is responsible for the collection and analysis of various fishery data, including coded-wire-tag (CWT), otolith, and fish scale data. The program deals largely with adult returns and tracks and analyses a variety of information; provides information for making contribution estimates, forecasting future returns and as feedback for evaluating various rearing and release strategies. The program also maintains several databases relating to NSRAA’s salmon releases, returns and economic value of commercial and cost recovery harvests.

These databases are used both for historical record-keeping and a variety of ongoing analysis. Examples of these are cost-benefit analysis and allocation tracking.

2013 CWT Collection & Analysis

• Conduct a coded-wire tag (CWT) sampling program for NSRAAChinook and coho cost recovery and rack returns per ADF&G andNSRAA requirements.

• Collect associated catch, size, sex and broodstock data• Ship CWT heads and data to ADF&G for processing• Provide analysis and reporting of results

2013 Chum Scale Collection & Analysis

• Conduct a scale sample program for NSRAA chum fisheries(commercial, cost recovery and rack returns); samples are generallycollected on a weekly schedule for each catch type.

• Collect associated catch, size, sex and broodstock data• Prepare and age scales• Provide analysis and reporting of results

75

2013 Otolith Collection & Analysis

• Conduct an otolith sampling program for NSRAA Deep Inlet, HiddenFalls and Haines chum fisheries

• Collect associated catch, size, sex and broodstock data• Prepare and read otoliths (Some or all of the otolith reading will be

contracted out to DIPAC’s otolith lab.)• Provide analysis and reporting of results, with primary emphasis on

evaluating the success of the late-large chum rearing strategies atDeep Inlet and Hidden Falls.

2013 Database Work

• We are in the process of an over-haul of our record-keeping system:converting much of our data from Excel spreadsheets to Access, andmaking improvements to existing Access databases.

• This process should result in a much higher level of efficiency inrecord-keeping, reporting and data analysis.

76

EVALUATION BUDGET FY '14

ACCOUNTTITLE Subtotal FY '14 Subtotal FY '13 Diff.

7001-7016 PAYROLL-BENEFITS-TAXES $17,307 $44,033 ($26,726)

7019/900 CONTRACT LABOR 4,500 0 4,500Otolith reading 4,500 0

7023/900 SUPPLIES 1,470 1,470 0Scale / CWT sampling supplies 300 300Otolith Lab supplies 1,170 1,170

7024/900 POSTAGE AND FREIGHT 1,650 1,650 0CWT 1,200 1,200OT - ship heads to Sitka (contingency) 200 200

Otolith Lab 250 250

7027/900 EQUIPMENT REPAIR 0 0 0Otolith Lab 0 0

7032/900 TELEPHONE 500 500 0

7046/900 PERMITS, DUES, FEES 0 0 0

7066/900 TRAVEL 5,500 3,000 2,500From Sitka to coho CR processor (2 trips @ $7 1,500 1,500Travel for OT sampling 4,000 1,500

7080/900 EQUIPMENT 0 0 0

Otolith Lab Equipment 0 0

TOTAL EVALUATION BUDGET $30,927 $50,653 ($19,726)

77

ADMINISTRATION BUDGET FY '14FY '14 FY '13

ACCOUNT TITLE Subtotal FY '14 Subtotal FY '13 Diff.

7001/001 PAYROLL-BENEFITS-TAXES 592,490$ 583,132$ $9,359

7017/001 ACCOUNTANT FEES 40,000 45,000 (5,000)

7019/001 CONTRACT LABOR 3,900 5,500 (1,600) office 1,500 2,500 Fish Rap 2,400 3,000

7020/001 ATTORNEYS 2,500 50,000 (47,500)

7022/001 OFFICE REPAIRS/MAINTENANCE 5,550 7,150 (1,600) maintain apartment 250 250 offices 1,500 3,200 carpets 1,500 1,400fluids, lubricants, expendables, general maintenance 2,300 2,300

7023/001 SUPPLIES 23,600 23,100 500 office 18,000 18,000 shop (Pallet Jack, gravel for back of warehouse & building Misc.) 2,700 2,700 vehicles (oils, filters, wipers, antifreeze, etc. tires) 1,800 1,000 boats ( marine lubricants filters, safety gear) 500 1,000 apartment 600 400

7024/001 POSTAGE 6,335 6,335 0 fish rap 1,630 1,630 nomination petions 820 820 ballots 820 820 bulk mailing fees 1,735 1,735 stamps 1,070 1,070 board books 260 260

7027/001 EQUIPMENT REPAIR/MAINTENANCE 7,100 7,100 0 maintenance & support MIP 5,500 5,500 maintenance & supplies copier 1,600 1,600

7031/001 UTILITIES 19,000 20,000 (1,000) office 17,000 16,000 apartment 2,000 4,000

7032/001 TELEPHONE 9,000 8,000 1,000 office 8,500 7,500 apartment 500 500

7036/001 PRINTING/ADVERTISING 4,550 4,500 50 fish rap 1,000 850 petitions & ballots 2,200 2,100 envelopes 500 500 calendars 450 450 misc 400 600

7041/001 INSURANCE 25,000 25,000 0

7046/001 DUES, FEES, SUBSCRIPTIONS, PERMITS 7,000 9,000 (2,000)

7047/001 PROPERTY TAX 3,000 2,000 1,000

7051/001 BANK/CHARGES & FEES 200 500 (300)

7052/001 INVESTMENT FEES 22,000 12,000 10,000

7066/001 TRAVEL/EMPLOYEE 30,000 30,000 0

7071/001 TRAVEL & EXPENSES/BOARD 37,000 37,000 0

7073/001 PROFESSIONAL DEVL FUND 4,000 4,000 0

79

ADMINISTRATION BUDGET FY '14FY '14 FY '13

ACCOUNT TITLE Subtotal FY '14 Subtotal FY '13 Diff.

7080/001 FURNITURE & EQUIPMENT 1,250 1,850 (600) apartment misc. pcs 250 250 pressure washer - shop 1,000 1,000

7097 NEW FACILITIES 5,000 10,000 (5,000)

7098 SCHOLARSHIPS 7,500 7,500 0

7091/001 MISCELLANEOUS 1,000 1,000 0

7095/001 DONATIONS/COMMUNITIES 500 500 0

TOTAL ADMIN OPERATING BUDGET $857,475 $900,167 ($42,691)

8001 CAPITAL PROJECTS 0 - $0

TOTAL ADMINISTRATION OPERATING & CAPITAL BUDGET $857,475 900,167$ ($42,691)

80

COMPUTER BUDGET FY '14

ACCOUNT TITLE FY '14 Subtotal FY '14 FY '13

Subtotal FY '13 DIFF.

7079/010 SOFTWARE $3,284 $3,104 180Syncplicity Server Software 540 1,200 Cloud- Backup Software 840Anti-Virus / Anti-Spyware 904 904

Software Upgrades 1,000 1,000

7078/010 HARDWARE $9,850 $13,350 (3,500)Monitors (2) 650 650 Workstations (4) 6,000 6,000 Laptops (2) 3,200 3,200 New Server - 3,500

7077/010 OTHER $1,500 $1,500 0Backup - Portable HDs 500 500

- - Hostway Web Hosting Fee 250 250 Misc. 750 750

7019/010 CONTRACT LABOR $10,644 $13,944 (3,300)ATM annual service contrac 4,644 4,644 ATM annual on-site visi 6,000 6,000 Server installation - 3,300

TOTAL COMPUTER BUDGET $25,278 $31,898 -$6,620

81

CONTENTS

Steve’s CR/Projected Income Worksheet………………......Page 85

FY’14 Budget Summary……………………………………....Page 86

FY’14 Capital Budget Summary………………….......….…..Page 87

Long Term Capital Expenses Summary………………….....Page 88

NSRAA Benefit to Cost Update………………….……...……Page 89

83

NSRAA COST RECOVERY / INCOME PLANNING2013 SEASON (FY14 and Forward-Funding for FY15 BUDGET) 2/15/2013 16:33

Projected Income - FY14 Projected Expenses - FY14 Projected Income - FY15Year Income Source Amount To Reserves Expense Source Amount Year Income Source Amount

2012 Enhancement tax $1,512,846 Operational Budget $5,897,186.00 2013 Enhancement tax2013 Chum Cost Recovery $2,161,731 Capital Budget $392,454.00 Chum Cost Recovery

From Reserves $0 Contingency $0.00 From Reserves2012 100% Excess CR'12 91,073.74 2013 50% Excess CR'122012 FY14 Revenues - coho, chin $464,863.11 Southeast Cove Operations $0.00 2013 FY13 Revenues - coho, chin $1,371,300.002012 FY14 Revenues - incidentals $5,656.81 Southeast Cove CIP $0.00 2013 FY13 Revenues - incidentals2012 FY14 Revenues - roe $122,056.26 2013 FY13 Revenues - roe $10,000.002012 FY14 Revenues - carcass $224,513.62 HF Chum Assessment Contingency Act. $0.00 2013 FY13 Revenues - carcass $350,000.00

RESERVES Facilities & New Production Acct. $0.00 2013 Tours2012 Rental Income $40,500.00 2013 Rental Income $42,000.002012 Investment Earnings (net of fees) $166,399.68 2013 Other

NSE account $1,500,000.00Total $6,289,640.00 $0.00 Total $6,289,640.00 Total $1,773,300.00

Forward Funding for FY15

Income Snapshot - FY 14 Budget 2013 Chum ReturnIncome Source Amount Percent Site Hidden Falls Deep Inlet TotalEnhancement Tax $1,512,846 24% Forecast 1,315,000 1,370,000 2,685,000 Forward Funding $908,164 14% CR Required $1,793,000 $1,868,000 $3,661,000 (Prior to NSE Funds)Other Income $206,900 3% CR Split 49% 51% 100%NSE account $1,500,000 NSE Funds $1,500,000 $1,500,000Chum $2,161,731 34% CR Required (ADJ) $1,793,000 368,000$ $2,161,000Total $6,289,640 76% CR fish (approx) - 36,800 36,800

CR % (approx) NA 3%

Steve 2013CR worksheet pre-season with mark-up.xlsx 2/15/2013

Brood Required 160,000 70,000 230,000 Brood % (approx) 12% 5% 9%Seine Acct Estimate 1,193,361$ Beginning Balance Est

From Seine Acct 440,650$ *TBDSeine Acct Balance 752,711$ *TBD Ending BalanceADJ CR Required 1,352,350$ *TBD

Assessment 20.00% NA *TBDChum SN Price Estimate 0.75$ *TBD

*TBD = to be determinedCurrent values are placeholders

Enhancement Tax, $1,512,846

Forward Funding, $908,164

Other Income, $206,900

NSE account, $1,500,000

Chum, $2,161,731

Income Snapshot ‐ FY 14 Budget

Enhancement Tax

Forward Funding

Other Income

NSE account

Chum

Steve 2013CR worksheet pre-season with mark-up.xlsx 2/15/2013

85

BUDGET SUMMARY FY '14

Code Project FY 2014 Operations CIP Total FY 2013 Operations CIP Total

001 Administration $857,475 $0 $857,475 $914,167 $0 $914,167010 Computer $25,278 $0 $25,278 $31,898 $0 $31,898150 Tagging $111,281 $0 $111,281 $99,865 $0 $99,865170 Diving $13,900 $1,700 $15,600 $12,532 $11,700 $24,232200 Medvejie $1,823,012 $133,000 $1,956,012 $1,722,215 $125,000 $1,847,215250 SS Smolt Studies $0 $0 $0 $0 $0 $0285 Sawmill Creek Hatchery $219,972 $104,000 $323,972 $134,356 $14,000 $148,356400 Coho L.Rearing $494,404 $39,754 $534,158 $484,560 $7,900 $492,460500 Haines $57,261 $10,000 $67,261 $51,434 $0 $51,434600 Hidden Falls $1,895,469 $104,000 $1,999,469 $1,751,922 $90,000 $1,841,922615 Whale Studies $0 $0 $0 $8,630 $0 $8,630616 SE Cove $168,206 $0 $168,206 $125,392 $277,400 $402,792900 Evaluation $30,927 $0 $30,927 $50,653 $0 $50,653350 SJ Hatchery $100,000 $0 $100,000 $100,000 $0 $100,000

9000 Fisherman Services $100,000 $0 $100,000 $100,000 $0 $100,000

Sub-total $5,897,186 $392,454 $6,289,640 $5,587,623 $526,000 $6,113,623

FY'14 Operational Budget $5,897,186FY'13 Operational Budget $5,587,623

Difference w/o capital 309,563$ 5.5% Increase

Project Difference in Ops % Change001 Administration ($56,691) -6.2%010 Computer ($6,620) -20.8%150 Tagging $11,416 11.4%170 Diving $1,368 10.9%200 Medvejie $100,798 5.9%250 SS Smolt Studies $0 0.0%285 Sawmill Creek Hatchery $85,616 63.7%400 Coho L.Rearing $9,844 2.0%500 Haines $5,827 11.3%600 Hidden Falls $143,547 8.2%615 Whale Studies ($8,630) -100.0%616 SE Cove $42,814 34.1%900 Evaluation ($19,726) -38.9%350 SJ Hatchery $0 0.0%

9000 Fisherman Services $0 0.0%$309,563 5.5%

86

Project Item Estimated Cost Project subtotalHidden Falls

John Deere Diesel UTV 14,000$ 104,000$ Electroanethesia Unit replacement 40,000$

New Lagoon Barrier Net 7,000$

50hp 4 stroke Yamaha for Tub 7,500$

Poor Cond. 1/8" Chum Net Replacement (6) (8=40k) 30,000$ Electric Pallet Jack (barge replacement/inc backup) 5,500$

MedvejieGreen Lake nets (5) 22,500$ 133,000$ Vaki Macro counter 62,000$ Work skiff boat trailer 6,500$ Back-up, stand alone diesel water pump 42,000$

Deer Lake 39,754$ Netting(starter nets/net tops/rearing barrier net) 23,786$ Smolt Ramp/Pipeline Improvement 11,200$ Generator 5Kw/Butt fusion welder(split w/HF) 4,768$

Haines 10,000$ Roof Repair 10,000$

SMC Hat/Salmon Lake 104,000$ JM8 pick machine (shared with all sites) 14,000$ PRV project 90,000$

Dive 1,700$ 1 Dry Suit & undersuit 1,700$

Total 392,454$

NSRAA Capital Needs Summary FY2014

87

NSRAA Long Term Capital Expense Summary

AllocatedProject Estimated Cost FY07 Through FY14* Balance*

Hidden Falls 4,112,046$ 1,554,046$ 2,558,000$ Medvejie 2,044,702$ 1,467,702$ 577,000$ SMC 90,000$ 118,000$ (28,000)$ Haines 32,500$ 27,500$ 5,000$ Deer Lake 732,500$ 462,754$ 269,746$ NSRAA HQ office 240,000$ 199,000$ 41,000$ Tagging 71,100$ 71,100$ -$ Diving 13,400$ 13,400$ -$

Total All Projects 7,336,248$ 3,913,502$ 3,422,746$

*Includes NSRAA and Grant Funding

Capital Expense Summary FY14.xlsx 2/15/2013

NSRAA Capital Spending FY14: 392,454$

Capital Expense Summary FY14.xlsx 2/15/201388

NSRAA Benefit:Cost Using Commercial Value as Benefit and 3% Tax as Cost:

Enhancement (3%) Tax paid by fishermen 1980-2007: $ 29,730,374 This amount funds returns through 2012

Enhancement (3%) Tax paid by fishermen 1980-2012: $ 39,469,950 This amount funds returns through 2017

Commercial Value of NSRAA Salmon 1984-2012: $ 213,126,204

Benefit : Cost Ratio = 7.2 : 1

Comparison of Commercial Value of NSRAA Production to Enhancement Tax

$0$20$40$60$80

$100$120$140$160$180$200$220$240

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3% Tax - Portion of tax invested with adult returns.3% Tax - Portion of tax invested with most adult returns yet to come.Value of Catch

NSRAA Benefit : Cost Update Spring 2013

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