SJ Hatchery Collaboration Metting

Sheldon Jackson Hatchery Collaboration Meeting
April 1-2, 2008 Final Report

Purpose: The University of Alaska Southeast Ketchikan campus organized and sponsored a collaborative meeting in Sitka on April 1 – 2, 2008 to explore potential future operation and functions of the Sheldon Jackson Hatchery facility.
The desired outcome of the day and a half meeting was to offer a thorough assessment of legitimate capacities, resources and interest(s) of participating organizations in SJ Hatchery operation, use & management.
Attendees: Representatives from a wide variety of agencies and organizations were present at the meeting. Please see Appendix A for attendance roster details.
Assessment of Capacities:
The group reviewed past capacity and was given a tour of the hatchery. The possibilities for the facility were discussed at length, both in small break out groups and as a whole. The general consensus was that the facility would be most effective as:
Education/Training facility
Production facility
Research facility
Within each of the three major categories, a wider variety of options were expressed for potential income, use, and staffing of the facility in best case scenarios. Appendix B outlines the full list of potential uses.
Assessment of Resources:
Financial
The issue of financial resources was a critical discussion during the entire meeting. Currently, the Sitka Sound Science Center (SSSC) organization has a short-term contract from Chilkat Services to run the hatchery. Chilkat Services represents Alaska Growth Capital (AGC is the primary debtor owned money by SJ College) and is coordinating the management of SJ assets and real property. SSSC, in turn, has contracted with Dan Goodness, former SJ hatchery manager, to maintain the current hatchery stock and manage the hatchery. All other uses, including the touch tanks/aquarium have ceased to operate.
The SSSC is a new 501(c)3 with a board of seven directors. Keith Cox, former SJ Science faculty chair, is acting SSSC Executive Director and is working for NOAA as a researcher. SSSC does not have a business plan developed for the continued operation of the hatchery. Currently, the board is limited in resources. There is some hope for funding from the State, but short-term stop-gap funding is scheduled to run out April 30, 2008.
One primary issue limiting the SSSC ability to seek funding sources is the continued uncertainty of Sheldon Jackson College debt, attachment of this debt to the hatchery and surrounding grounds and the commitment by the Board of Trustees to retain the hatchery and surrounding property.
Through the meeting process, Chilkat Services assured the group there is no intention of selling the hatchery or surrounding property. In addition, both the President of Sheldon Jackson

David Dobler and Board of Trustee Gary Paxton reasserted the college’s intention to keep the hatchery and facilitate uses of it that best suit the community.
With that noted, financial resources are critical to the continuation of the hatchery. Long-term areas of potential revenue included:
· Increase the number of Deep Creek Chum salmon on the permit as a way to increase revenue (10 million chum?) – can increase SJ revenue to about $150K/year, increase commercial harvest, increase NSRAA cost recovery – about 6 years to see return
· Make full use of the building to generate revenue – touch tanks, classes, services, gift shop, use of building as part of overall business plan
· Assess viability of a shellfish nursery – is the industry willing to pay?
· Fish Tag Lottery as fund raiser
· Consider membership fees in SSSC
· Power generation as a possible income source
· Assess costs associated with different species of salmon, raise the number of fish needed to maintain broodstock
· How to get return from sport fishermen – they contribute $30 million year to local economy but no contribution to the SJ Hatchery or NSRAA
· Contact State Revolving Loan Fund Program – request extension on outstanding debt (about $180K) and/or ask for additional loan.
· Consider an Economic Development Loan from City or asking for some of the head tax or fish box tax income
· Pursue state and federal requests
· Follow up on EDA $$ and pursue match for it (Alaska Growth Capital loan for match as a way to increase their assets?)
Management
Management of the hatchery was discussed at length. In addition to the hatchery, the Sage Building itself presents management challenges including, but not limited to, maintenance and repair, heating, public access and classroom rental or other usage.
The SSSC was seen as the de facto organization to continue management of the facility. The board needs some assistance, but in general, it was perceived by the group that the SSSC’s mission best matched that of the hatchery’s purpose. The permit for the hatchery remains with Sheldon Jackson College, but management can be delegated to anyone Sheldon Jackson deems appropriate.
The bigger issue is establishment of a long-term lease with Chilkat Services for the hatchery, Sage Building and surrounding property. Currently there is a 90-day lease with Chilkat Services. Key issues to resolve for management success included:
Long term lease with Chilkat for building/grounds/hatchery use
Long term commitment for Chum production with NSRAA
Strengthened SSSC organizational structure
Business plan for financial success
Seasoned management team to manage facility/grounds/hatchery

Interest(s):
The overall interest of participating organizations was strengthened over the course of the day and a half of meetings. The group generally agreed that major players including Sheldon Jackson, Chilkat Services, NSRAA, SSSC, and the community of Sitka were committed to keeping the hatchery operational and the Sage Building a functioning educational/training facility for fisheries/mariculture/aquaculture interests.
The group agreed that through concerted effort, the SSSC could forge partnerships with other organizations to provide a variety of services/functions/components to keep the hatchery functioning.
Some of these organizations included:
· Alaska Department of Fish and Game (ADFG)
· National Oceanographic & Atmospheric Administration (NOAA)
· City & Borough of Sitka
· University of Alaska
· Northern Southeast Regional Aquaculture Association
· Education Consortium of Sitka
· Other non-profit organizations in Sitka
· High Schools in Sitka/Region
· Alaska Native Tribal Organizations
· Commercial/Sport Fishing Organizations
A full list of organizations and suggested partnership components are listed in Appendix C.
Recommendations & Next Steps:
At the conclusion of the meeting, the group agreed that with a determined effort on the part of the SSSC board of directors, the future of the Sheldon Jackson Hatchery has promise. To that end, the group offered a list of specific tasks, both short and long term, for SSSC to be successful in its endeavor to keep the hatchery producing. Recommendations were made by participants with 20 plus years of fisheries management, state agency management, educational and research experience with the goal for SSSC to be successful.
Immediate Short Term Steps:
1. Clarify Roles: Can Chilkat Services make a long term (10 years +) lease to SSSC? Is there any problem with SJ giving SSSC long term management authority to operate the hatchery/facility? (Gary Paxton, Keith Cox, Russ Thorpe will clarify and investigate that and have that information available to Board of Trustees meeting on May 1).
2. Board of SSSC meets on April 7th. At that time, SSSC should vote to add and diversify its board membership through recruitment of new members immediately. (Keith, Kitty)
The following individuals volunteered to join the board: Steve Reifenstuhl, NSRAA; Gary Paxton, Sitka Economic Dev Assoc; Bill Smoker, UAF Fisheries, UAF; Karen Schmitt, UAS Dean of School of Management and School of Career Education.
John Stein, City of Sitka was volunteered. Other names suggested included: Seafood Processors – Rick; Sitka Tribe – Director; Educational Consortium of Sitka – Karen; a tourism/charter representative. Commercial fishing rep – Eric Jordan? Cruise Ship rep? Recommended Ex-Officio members include: NOAA – Doug Mecum and Doug DeMaster should be recruited; Chilkat Services, Russ Thorpe; ADF&G; USFS; National Park Service.
3. Create a short needs statement & facility development proposal describing the management approach planned by the SSSC to make the hatchery a sustaining facility/resource for the City/Borough. (Keith, Dave and others)
4. A press release/media kit will be developed by UAS Ketchikan for SSSC use outlining the meeting and plans to move forward. SSSC will send out the information to the media before the May 1 Sheldon Jackson Board of Trustees meeting. (Cathy LeCompte, UAS Ketchikan Campus Director will have this developed, Keith will send it out).
5. The SSSC should ask the City of Sitka for financial assistance – particularly for these next few months. Provide the Council members with the short proposal mentioned above. (Russ will check on timeline to approach City; Gary and Keith will work on how/when to approach them).
Recommended Long Term Steps:
Develop a 10-year business plan for the hatchery, Sage Building and surrounding grounds. Contact UA Marine Advisory Program Business Specialist Glenn Haight for help with Business Plan development or ask Rasmuson for Tier 1 grant to develop Business Plan.
Make sure any outstanding debt is understood by all parties, how each is affected and how debt will be dealt with long term.
SSSC should pursue Board of Director training, possibly from the Foracker Group.
SSSC should hire a strong executive director/business manager/coordinator with proven experience and skills in creating partnerships and raising funds.
The SSSC should remain autonomous from Sheldon Jackson College/Foundation so they are able to apply for funding and build a program without concern by funders that SJ’s issues will be part of the SSSC.