PAUG-VIK INC. LTD. (PVIL)
P.O. Box 61
Naknek, Alaska 99633
ANNUAL PAUG-VIK SHAREHOLDERS MEETING
October 8, 2016
- INTRODUCTION: William “Bill” Hill welcomed everyone to the 43rd Annual Meeting. Registration was from 10:00 am to 1:00.
- INVOCATION BY DAN O’HARA AND POTLUCK: Dan O’Hara gave the blessing for the food and the meeting.
- MOMENT OF SILENCE FOR DEPARTED SHAREHOLDERS: We observed a moment of silence for our departed shareholders.
- EARLY BIRD PRIZE DRAWINGS: Our Early Bird Prize winners were:
$300 Dorena Angasan
$100 Michelle Myer
$50 Everett Thompson
$50 Joyce Anderson
- CALL TO ORDER: President Bill Hill called the meeting to order at 1: 30PM.
- ROLL CALL: Present was Chad Anderson, Paula Monsen, Guy Groat, Eddie Clark and Bill Hill. Richard Wilson and Paul Hansen were absent. Lucy Goode, General Manager and Maurice Labrecque, Paug-Vik Development Manager were also present to give their report.
- SECRETARY’S REPORT: Paula presented the Shareholder’s list and the affidavit of shareholder’s packets that were mailed out by Bristol Bay Corporate Services.
- OATH OF INSPECTOR OF ELECTIONS: Bill asked Bikky Shrestha to accept the Oath of Inspector of Elections, Mr. Shrestha accepted the Oath.
- INTRODUCTION OF DIRECTORS, STAFF AND PROFESSIONALS: Mr. Hill introduced the Board Members: Chad Anderson, Paula Monsen, Guy Groat, Eddie Clark and Bill Hill also present. Bill then introduced the staff of General Manager, Lucy Goode, Linda Halverson, Judy Jo Matson (who is helping out), Joyce Anderson and Paula Monsen.
- CLOSE OF REGISTRATION: Mr. Hill closed the registration.
- INSPECTOR’S QUORUM REPORT AND COMMENCEMENT OF MEETING: Quorum report, by Bikky Shrestha and are at 47.86% which meets the quorum. Last year Pvil Shareholders voted to lower the required quorum to 1/3 percent = 33.333%.
- APPROVAL OF AGENDA FOR 43rd ANNUAL MEETING: Judy Matson moved to approve agenda and Pamela Riddle seconded the motion which Passed.
- APPROVAL OF MINUTES FOR 42nd ANNUAL MEETING: Judy Matson moved to approve minutes and Pamela Riddle seconded the motion that Passed.
- NOMINATION OF DIRECTOR CANDIDATES AND SPEECHES: Linda Halverson nominated incumbents Richard J. Wilson and Eddie Clark. Paula seconded. The motion passed. Allan Aspelund Sr. moved to close nominations. Dan O’Hara seconded the motion and it passed.
- Eddie Clark commented that he enjoys serving on the Paug-Vik Board of Directors. He has served on the Paug-Vik board for many years. He shared that even though the board members may have differences of opinions sometimes, in the end they all vote together as the team to support the Board decisions. Eddie asked for support in re-electing him back to Paug-Vik Inc. Ltd. Board. Eddie has worked together with the board members well and commented that it is good to have Lucy as the General Manager. She has been very protective of Paug-Vik and he likes working with her. Eddie would like to be re-elected to the board.
- Richard Wilson was stuck in Kokhanok due to the windy weather and is also running for Board term again.
- MANAGEMENT REPORTS:
- President Hill gave his report to the shareholders. A shareholder asked if Pvil had any more long term debt. Bill reported that we did but are doing a final payment on November 1st of $16000 for a Home Mortgage loan that was taken out in 2000 for a $1.5 million loan for the purchase of Fox Creek Units. A couple of years ago, Pvil made a decision to make larger principal payments to save money on the long term interest. PVIL has done a good job of reducing the debt and we are happy Pvil will have this loan paid off. President Bill spoke about the State of Alaska Commissioner’s meeting at the BBB High School last Thursday. He came out with Bryce Edgmon to discuss the States financial crisis, the SOA budget deficit this year and how it is impacting rural programs in Alaska. Shareholder Dan O’Hara reported that he had attended a Mayor’s Conference in Bethel a few years back and that the Mayors of communities up in the Yukon, and that area spoke to him about the need for gravel as a resource since they have little to none, in the area. Native Allotments that had gravel were purchased by big contractors in from the Anchorage area and they don’t sell the gravel material to the local entities but instead use it for their own projects that they bid on in rural Alaska. He commented that it would something to look into since all you would need to do is import the gravel to the area. Levelock also needs gravel so would be good for economic development.
- Pvil General Manager Report: Lucy Goode reported Copper River Seafoods was approved for a Sheet Pile Project to stop erosion at the dock. PDC was working with CRS to submit bids for other expansion projects with Copper River for a mess hall, Facility expansion and a new bunk house. Not a lot of gravel was sold in the past year but this fiscal season it has improved with a few projects happening in the community. Lucy also met with Russel Phelps Land Resource Manager BBNC and a new Drone company called K2 Dronotics, did a Drone Fly over of the King Salmon North and South Gravel pits. When they got back to Anchorage they sent out a PowerPoint report of the drone check of the gravel pit. Lucy shared for Pvil Shareholders 99 year land leases have a deadline of October 31st, 2017. Lucy reported the Pvil policies across the board are being updated in November with the Foraker Group who is helping Pvil. We also have plans to create an investment policy for the shareholders dividend fund. It has 1.7 million in trust funt currently in CDs. Last year the dividend was reduced to $1.00 share dollars until we reach one million in the Trust Fund account. When Pvil transferred 14C (3) Lands to the BBB, Pvil was able to receive a tax credit and received $1,566,308 in tax credits from doing a land appraisal for the transfer. This year Pvil donated from gravel fun and 7i funds totaled $107, 861.80 to the Trust Fund. The Pvil subsidiaries reported a loss this year and did not have a contribution to give.
- Pvil Subsidiaries General Operations Manager: Maurice Labrecque gave a report on the history of the Pvil Subsidiaries, PDC, PVC and shared about the new construction firm that was just formed. He spoke about the bidding history in comparison to know how competitive it has gotten due to the economic crisis the country is having and how it has impacted, how the companies bids are awarded. PDC is finishing up a project, IDIQ, work with Norton Sound and recently submitted a bid to Alaska Airlines for terminal building renovation work in several villages and was awarded the bid. Mike Laufenberger recently retired from PDC after seventeen years of work and is relocating to Carmel, California. Mike will be missed with his service to the corporation. Mike was a good Construction Manager. PDC is being retired because its 8A status has exceeded its time. This Spring, PDC filed a new 8A application to start a brand new construction company as PDC. Paug-Vik Environmental and PVS are still active. 8A companies can serve nine years after that it’s mandated that the corporation is closed out per Federal Regulations. It’s a rigorous application to start another 8A company. It must be approved the the SAB and is a long process. Eddie Clark commented that Pvil has a shareholder, Heidi Hammond working for PVS environments. Shareholder, Dan O’Hara asked Maurice what the percentage of 8A projects and Maurice reported that 10-50 projects are 8A. Dan commented that when he served on the BBNC board, he also served on the committees for the 8A companies. He though that the 8A companies were not good to do and wants to see Pvil get away from 8A projects.
- Auditors Financial Statements by Accounting Firm: Bikky Shrestha gave a report on the Audit for FY 15/16. He has been with PVIL for 12 Years. The balance sheet shows we have 11 Million dollars. Liability of 853 thousand, will be paid off through the tax credit Pvil received. We have $1,566308 left to use going forward as a Net operating loss, can be used fr Pvil and all its subsidiaries. He pointed out Pvil has a clean audit. Both Pvil General Manager Lucy Goode and PDC PVS, General Manger Maurice Labrecque has signed off on the audit.
- CLOSE OF BALLOT BOX: President Bill Hill called for the close of the ballot box.
- INSPECTOR’S REPORT ON BALLOTING: Bikky reported that Election results are Eddie Clark – 13, 829.28 and Richard Wilson – 14,871.28. Congratulations to both being reelected onto the Pvil Board of Directors for another 3-year term.
- SHAREHOLDER QUESTIONS AND ANSWERS:
Questions were asked about PDC and bill replied that the shareholders will have an opportunity to listed to Maurice give his report late and ask him questions directly. Shareholder Mr. Aspelund commented about the fuel situation here as an opportunity that Pvil could look as a partnership. He said that BB Alliance Company General Manager Tiel Smith, was here over the weekend doing home surveys with local residents about the fuel cost here. He said that since BBNC Bristol Alliance purchased the Fuel Company in Dillingham, the community has had a drop in the gallon prices to two dollars per gallon. He suggested that since Paug-Vik owns the land down by the beach area and there is a need for land location, to offer a partnership with Bristol Alliance expansion over here into the fuel business and to contact Tiel Smith to explore that idea. Shareholder Sylvia Alford asked about the Laundromat large dryers. She said they are not working and the new washers are breaking down too and need maintenance. She suggested Pvil invest in big washers. Bill answered and said that originally the Laundromat was intended for the Cedar Village tenants to use. However, it ended up being a community Laundromat and it runs as a loss every year. Plus we had a fisherman who had been coming up to Naknek to commercial fish, he was caught staying at the laundromat the last weekend and the cops had called the General Manager over the weekend to let her know that they had arrested him. Bill said we need to look at new income streams and this year has been a leaner year for the budget and the machines are very expensive. Brand new dryers are $17000. Bill then encouraged if there is younger people interested in running the board, his term is up next year. Pvil has done a good job of reducing the debt.
- PRIZE DRAWINGS were held for in-house prizes.
- ADJOURNMENT: Sylvia Alford moved to adjourn at 2:58 p.m. and Judy Jo Matson seconded the Motion that passed.
|Paula Monsen, Secretary||Bill Hill, President|