Alaska Business December 2017 by Alaska Business

TOP BUSINESS STORIES OF THE YEAR December 2017 Digital Edition

December 2017

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December 2017 Digit al Edition TA BLE OF CONTENTS

DEPARTMENTS

ABOUT THE COVER: The Last Frontier is an exciting conglomerate of different voices, cultures, and ideas. Our legislature is tasked with listening to all of those concerns and crafting policies that best serve Alaskans as they live, work, and play in the 49th State. While the “snow” vote is perhaps not particularly strong, many sectors of local business do routinely express their concerns and suggestions to our governing body to ensure Alaska’s economic future remains bright. We encourage all Alaskans to know who their representatives are and to communicate clearly their needs as citizens and members of the Alaska business community.

FROM THE EDITOR 7 EAT, SHOP, PLAY, STAY 78 EVENTS CALENDAR 80 BUSINESS EVENTS 82 INSIDE ALASKA BUSINESS 83 RIGHT MOVES 86 ALASKA TRENDS 88 AD INDEX 90

Cover Design: Art Director David Geiger

ARTICLES YEAR IN REVIEW

Pieces made at the Alaska Native Heritage Center, supported in part by a project grant from The CIRI Foundation.

8 | Top Business Stories 2017 Compiled by Alaska Business Staff

Healthcare Special Section

Images courtesy of the Alaska Native Heritage Center

22 | Extreme Arctic

Winters Pose Risks to Community Health

Icy roads, sidewalks, lack of sunshine, extreme cold lead to illness and death every winter By Judy Mottl

28 | Protect Employee

Health, Finances, and Future with Ancillary Insurance

When it comes to employer-offered insurance, medical care is just the beginning By Tracy Barbour

34 | Skin Deep

Beneath the surface of Alaska skin conditions By Heidi Bohi

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12 ALASKA NATIVE BUSINESS 12 | Education and Empowerment

Alaska Native scholarships and training advance culture, heritage, future By Heidi Bohi

FINANCIAL SERVICES 16 | Meticulous Records,

Professional Accounting Offer Help Ahead of Proposed Tax Law Changes Preparing for efficient year-end closeout processes By Tracy Barbour

ENGINEERING

50 | Engineers Imagine Alaska: Year-Round Road Accessibility & Sustainable Energy

Engineering wish lists offer solutions to Alaska’s transportation, energy, public health challenges By Judy Mottl

SMALL BUSINESS

54 | SBA Administrator: Small

Businesses Form ‘Backbone’ of Alaska’s Communities

Organization provides tools entrepreneurs need to grow small businesses By Tasha Anderson

Alaska Business | December 2017 www.akbizmag.com

ONE BANK SHARED MY VISION

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We Believe in Alaska

December 2017 Digit al Edition TAB LE OF CONTENTS

Building Alaska Special Section

Image courtesy of AGC of Alaska

KLEBS Mechanical served as mechanical subcontractor for Riverview at The Bluffs, a four-building, sixty-nine room lodge situated on the lower slopes of Sugarloaf Mountain in Denali.

36 | AGC of Alaska Honors

2017 Award Winners at Annual Convention Winners include congressman, contractors, engineers, and construction projects By Kathryn Mackenzie

38 | Mat-Su Valley Expansion

Projects Show Valley is ‘Open for Business’ New builds, remodels, infrastructure modernizations help meet growing demand By Tom Anderson

42 | Alaska Business

Construction Round-Up

State’s third-largest industry stays busy with marine, transportation, facilities projects By Heidi Bohi

ARTICLES SMALL BUSINESS

58 | Caring for More than Just the Bottom Line

Small businesses giving back By Tracy Barbour

OIL & GAS

62 | Oil and Gas Legislative

Priorities: Stability and Certainty Uncertain tax credit future, potential changes to tax structure chills projects By Julie Stricker

66 | Oil Companies Cut Costs, Increase Efficiency, Push Discovery Efforts

Such moves could lead to brighter days for oilfield services companies By Julie Stricker

TELECOM & TECH

74 | Staying Ahead of the Pack with Tech

Advanced technology allows businesses to do more with less By Tom Anderson

TRANSPORTATION

70 | Trucks in the Tundra

Alaska’s multi-generational, family-owned transportation companies By Tasha Anderson

Alaska Business | December 2017 www.akbizmag.com

FROM THE EDITOR VOLUME 33, NUMBER 12 Published by Alaska Business Publishing Co. Anchorage, Alaska EDITORIAL STAFF Managing Editor Kathryn Mackenzie 257-2907 editor@akbizmag.com

Associate Editor Tasha Anderson 257-2902 tanderson@akbizmag.com Art Director David Geiger 257-2916 design@akbizmag.com Art Production Linda Shogren 257-2912 production@akbizmag.com Photo Contributor Judy Patrick BUSINESS STAFF President Billie Martin VP & General Manager Jason Martin 257-2905 jason@akbizmag.com VP Sales & Marketing Charles Bell 257-2909 cbell@akbizmag.com Advertising Account Manager Janis J. Plume 257-2917 janis@akbizmag.com Advertising Account Manager Holly Parsons 257-2910 hparsons@akbizmag.com Advertising Account Manager Christine Merki 257-2911 cmerki@akbizmag.com Accounting Manager Ana Lavagnino 257-2901 accounts@akbizmag.com Customer Service Representative Emily Olsen 257-2914 emily@akbizmag.com 501 W. Northern Lights Boulevard, Suite 100 Anchorage, Alaska 99503-2577 (907) 276-4373 | Toll Free: 1-800-770-4373 Fax: (907) 279-2900 www.akbizmag.com Editorial email: editor@akbizmag.com ALASKA BUSINESS PUBLISHING CO., INC. Alaska Business (ISSN 8756-4092) is published monthly by Alaska Business Publishing Co., Inc., 501 W. Northern Lights Boulevard, Suite 100, Anchorage, Alaska 99503-2577; Telephone: (907) 276-4373; Fax: (907) 279-2900, ©2017, Alaska Business Publishing Co. All rights reserved. Subscription Rates: $39.95 a year. Single issues of the Power List are $15 each. Single issues of Alaska Business are $3.95 each; $4.95 for October, and back issues are $5 each. Send subscription orders and address changes to the Circulation Department, Alaska Business, 501 W. Northern Lights Boulevard, Suite 100, Anchorage, Alaska 99503-2577. Please supply both old and new addresses and allow six weeks for change, or update online at www.akbizmag.com. Manuscripts: Email query letter to editor@akbizmag.com. Alaska Business is not responsible for unsolicited materials. Photocopies: Where necessary, permission is granted by the copyright owner for libraries and others registered with Copyright Clearance Center to photocopy any article herein for $1.35 per copy. Send payments to CCC, 27 Congress Street, Salem, MA 01970. Copying done for other than personal or internal reference use without the expressed permission of Alaska Business Publishing Co., Inc. is prohibited. Email specific requests to editor@akbizmag.com. Online: Alaska Business is available at www.akbizmag.com/ Digital-Archives, www.thefreelibrary.com/Alaska+Business+Monthly-p2643 and from Thomson Gale. Microfilm: Alaska Business is available on microfilm from University Microfilms International, 300 North Zeeb Rd., Ann Arbor, MI 48106.

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Saying Good-Bye to a Turbulent 2017… Looking Forward to a Prosperous 2018

o many thrilling changes occurred in Alaska in 2017. The oil and gas industry received exciting news in May when US Secretary of the Interior Ryan Zinke signed a secretarial order to advance exploration efforts in the National Petroleum Reserve—Alaska and to update resource assessment for certain areas of the North Slope, specifically in the Arctic National Wildlife Refuge (ANWR). The 1.5 million acre coastal plain of the 19 million acre ANWR is the largest unexplored, potentially productive geologic onshore basin in the United States, according to the Department of the Interior. Later in the year, the EPA and Pebble Mine settled their respective lawsuits allowing Pebble’s owners to move forward with planning and pre-permitting. And then there was the $43 billion landmark LNG (liquid natural gas) agreement made last month when Alaska Gasline Development Corporation, the State of Alaska, Sinopec, China Investment Corporation, and the Bank of China signed a memorandum of understanding to advance the LNG pipeline in Alaska. The longdebated project could create 12,000 jobs and reduce the trade deficit between the United States and Asia by $10 billion a year, according to Governor Bill Walker’s office. “Because Alaskans need well-paying jobs and affordable energy to power our homes, schools, and businesses, this Alaska LNG project is critical,” Walker said in a statement. For those of us who work or live in midtown Anchorage, another not-to-be-missed story in 2017 was the demolition of the old Northern Lights Hotel. First opened in 1965 as the Gold Rush Motor Lodge, the Northern Lights Hotel was rebuilt five years later after a fire, identified as arson, killed five guests. The Northern Lights Hotel was closed for good by the Anchorage Fire Department in 2002 after responders found more than sixty fire code violations. After sitting vacant for fifteen years, the treacherous (and some say haunted) building was finally laid to rest in late summer. Today, as I gaze out my window at the icy snow and cement blocks surrounding the now-vacant lot, I can only imagine what’s next for 598 West Northern Lights Boulevard. Multiple landmark projects and legislative changes took place this year, including changes to oil tax credits, the initial formation of a multi-billion dollar LNG international trade agreement, and Quintillion’s announcement that it installed the final section of subsea fiberoptic cable in Arctic Alaska, completing the Alaska portion of a project that brings high-speed broadband access to several rural areas that previously had none. It will be exciting to see how the addition of Internet access connects area such as Utqiaġvik, Wainwright, Point Hope, and Kotzebue in a way never seen before. Our hope for the coming year is that Alaska continues this forward trajectory and all of our industries, from oil and gas and resource development to fisheries, tourism, and technology, keep discovering new and innovative ways of not just succeeding, but thriving, despite an uncertain economy ahead. In this, our final issue of the year, we present the biggest stories of 2017; provide an update on the continuous expansion in the MatSu Valley (bowling, anyone?); and, since we’re rushing headlong into winter’s depths, medical experts offer tips on how to stay healthy and happy through the long, dark months ahead. We hope you enjoy reading this issue as much as we enjoyed creating it. Happy Winter, friends!

—Kathryn Mackenzie, Managing Editor, Alaska Business December 2017 | Alaska Business

YEAR IN REVIEW

Top Business Stories 2017 Compiled by Alaska Business Staff

espite significant challenges, many of Alaska’s businesses, associations, nonprofits, and other economic drivers—from colossal industry players to oneemployee entrepreneurial operations—kept a steady keel as they navigated tough terrain in 2017. Alaska Business has pulled together a few news highlights from 2017 in celebration of the drive, innovation, longevity, and commitment each of these operations.

Alaska LNG In November Alaska Governor Bill Walker signed the five-party joint development agreement for the Alaska liquefied natural gas (Alaska LNG) project. This historic signing is the most significant step toward finally monetizing Alaska’s vast resources of natural gas. President Donald Trump and President Xi Jinping were present for the signing ceremony at the Great Hall of the People, underscoring the international importance of the agreement. Chugach | ML&P | MEA Three of Alaska’s Railbelt electric utilities signed an agreement to collectively utilize their generation and transmission assets to benefit tens of thousands of customers. The Power Pooling and Joint Dispatch Agreement, signed by Chugach Electric Association, Municipal Light & Power, the Municipality of Anchorage, and Matanuska Electric Association, was filed with the Regulatory Commission of Alaska. Vigor | Maritime Works Vigor and Maritime Works jointly announced an innovative training program aimed at developing an advanced manufacturing workforce comprised of Alaska residents. Advancing Alaskan Workers is essential to combatting the high turnover rates seen at the Ketchikan shipyard and elsewhere that result when non-Alaskans are recruited to fill critical skills gaps in state, the companies say. The Advancing Alaskan Workers project offers structured on-the-job training, leading to industry-recognized credentials and family wage careers. 8

Image courtesy of Ahtna

Ahtna Ahtna concluded operations on the Tolsona No. 1 gas exploration well after completion of the initial flow testing. All personnel, equipment, and materials were successfully demobilized from the drilling site, the well was suspended and all that remains is the well head. Alaska Aces The ownership group of the Alaska Aces professional hockey organization ceased operations after fifteen seasons and three Kelly Cup championships. Aces management said as a result of the economic downturn, sponsorships were down $600,000, season ticket sales were down $262,000, and attendance was down about 1,500 spectators per game from

just a couple of seasons ago. The organization lost more money in its final season than in the past two seasons combined and the team expected the downward trend to continue.

Repsol | Armstrong Repsol and partner Armstrong Energy made the largest US onshore conventional hydrocarbons discovery in Alaska in thirty years. The Horseshoe-1 and -1A wells drilled during the 2016-2017 winter campaign confirm the Nanushuk play as a significant emerging play in Alaska’s North Slope. The contingent resources identified with the existing data in Repsol and Armstrong Energy’s blocks in the Nanushuk play in Alaska could amount to approximately 1.2 billion barrels of recoverable light oil.

Alaska Business | December 2017 www.akbizmag.com

Chugach Alaska Corporation Chugach Alaska Corporation sold its Bering River coal rights to New Forests, a sustainable forestry and conservation investment manager. New Forests will retire those rights by transferring them to The Nature Conservancy and the local Native Conservancy land trust, while generating revenue through the California cap-and-trade carbon market.

â&#x20AC;&#x153;By supporting the efforts of

United Way we are a part of the long term solution to affordable housing. What part can you play?â&#x20AC;?

Arctic Slope Telephone Association Cooperative Arctic Slope Telephone Association Cooperative turned up 4G service in Kaktovik in 2017, finishing the conversion in all eight of the villages it serves as well as expansive Prudhoe Bay coverage. The conversion from 2G to 4G, in collaboration with AT&T, brought the first HSPA+ high-speed data service to the region. The new service extends miles out to sea and onto the tundra.

Joe Schierhorn President & CEO Northrim Bank

GCI

Ensuring our neighbors are warm, housed and fed helps build a strong economic foundation for us all. Image courtesy of GCI

This work takes the committed cooperation of businesses, agencies, government and community members to achieve these goals. GCI made significant advances developing statewide infrastructure, including a new wireless tower near Coldfoot, which brought the first voice and high-speed data service to Dalton Highway traffic. GCI also celebrated the completion of the heavy construction phase of the Terrestrial for Every Rural Region (TERRA) high speed Internet project in 2017. TERRA is a massive Alaska infrastructure project that connects eighty-four rural communities to modern technology with high-speed terrestrial broadband. www.akbizmag.com

TRANSFORMATION TAKES A TEAM. JOIN US! AND MAKE A DIFFERENCE.

United Way of Anchorage

December 2017 | Alaska Business

Image courtesy of Foss Maritime

Chukchi Sea OCS President Donald Trump signed an order reopening the Chukchi Sea OCS and portions of the Beaufort Sea for potential exploration. The prior administration withdrew the entire Chukchi OCS and the vast majority of the Beaufort OCS from the Department of Interior’s 2016 Five-Year Offshore Leasing Plan. Eni The Bureau of Ocean Energy Management conditionally approved a Beaufort Sea exploration plan it received from Eni US Operating Co. In its plan, Eni describes its intent to drill four exploration wells into the federal submerged lands of the Beaufort Sea from its Spy Island Drillsite, a pre-existing facility located in Alaska state waters. Drilling will be conducted during the winter months only and is scheduled to begin this month. PenAir PenAir filed for Chapter 11 reorganization with the State of Alaska. “The steps we are taking today will allow PenAir to emerge as a stronger airline while continuing our focus on safe operations,” said PenAir CEO and Chairman Danny Seybert. “We will be working with a restructuring officer to present a reorganization plan that will allow the management team to focus on our employees, safe operations, retiring debt, and taking care of our customers.” Office of the Governor Governor Bill Walker signed into law SB30, which is expected to generate between $22 million and $27 million in revenue to the state. The legislation, which the governor introduced, approves a four-year contract in which the State of Alaska will sell royalty oil to Petro Star Inc. 10

Foss The final of three state-of-the-art Arctic Class tugs, the Nicole Foss, was christened in June at the Foss Waterway Seaport in Tacoma, Washington. The Nicole Foss is designed to operate in the extreme conditions of the far north, and entered service in the summer of 2017. The first of the three Arctic tugs, the Michele Foss, debuted in 2015 and in her first year of operation led the way in safely pioneering a new route across the North Slope. Lyft and Uber Governor Bill Walker signed a bill into law allowing ridesharing companies such as Lyft and Uber to operate in Alaska. Under HB132, drivers working for ridesharing companies are labeled as independent contractors and must be insured. HB132 passed the Alaska State Legislature in 2017 with strong bipartisan support. NOVAGOLD NOVAGOLD and its partner Barrick Gold Corporation announced that Donlin Gold LLC, the co-owned operating company advancing the Donlin Gold project in Alaska, approved a drill program designed to further optimize the project. The partners approved an $8 million budget for a drill program that collected geologic and geotechnical data in 2017. Tesoro | Petro Star Tesoro Alaska Petroleum Company entered a purchase and sale agreement that transferred ownership of Tesoro’s Terminal 1 at the Port of Anchorage to Petro Star Inc. The State of Alaska required the sale of Terminal 1 in order to preserve competition in Alaska’s fuel market. The state imposed the requirement as part of a consent decree between Alaska

and Tesoro when Tesoro sought to purchase most of Flint Hill’s fuel storage assets in Anchorage and Fairbanks.

Pebble Partnership The Pebble Limited Partnership announced an agreement to resolve the long-standing preemptive actions by the US Environmental Protection Agency against the project. The resolution effectively ended the litigation and established a clear path for the Pebble Project to initiate permitting under the Clean Water Act and the National Environmental Policy Act. Cash Tax Credits The state will stop offering cash tax credits to oil companies at the end of 2017, following a Senate vote in May. HB111 eliminates the state’s cash exposure by ending the program of refundable oil and gas tax credits while protecting the basic components of the tax regime in place today. The current tax regime boosted production and investment, drawing royalties and tax revenues to Alaska’s treasury and supplying thousands of jobs to Alaska workers. ConocoPhillips ConocoPhillips announced plans in January to sell its Kenai LNG plant. The plant, which processes gas from Cook Inlet, includes a dock and loading facility to transport LNG. For fifty years the Kenai LNG plant was the only export facility of domestic LNG in North America. Though still functional, the plant has not exported gas since 2015 due to market conditions. Unable to find a suitable buyer, the company plans to scale back and potentially shut down the plant. AOGA At the second AOGA Annual Conference, US Interior Secretary Ryan Zinke delivered

Alaska Business | December 2017 www.akbizmag.com

Photo by ABM Staff

the keynote address during which he signed a secretarial order directing Interior agencies to review management and leasing of the North Slope NPR-A and to conduct a new oil and gas assessment of the coastal plain of the Arctic Wildlife Refuge coastal plain.

 Bristol Bay Industrial purchased Alaska Directional.

Mergers/Acquisitions Mergers and acquisitions are ongoing among the companies that operate in the Last Frontier; Alaska Business has compiled some of the notable mergers and acquisitions from 2017.

 Tesoro acquired Western Refining; following the acquisition, Tesoro changed its name to Andeavor.

 Chugach Alaska Corporation acquired Rex Electric and Technologies.  Northern Lights Media, operator of Anchorage-based KTUU-TV and Channel 2 News, acquired local NBC (KTVF) and CBS (KXD) televison affiliates.  Idaho-based Kendall Auto Group bought Cal Worthington Ford and Lincoln of Anchorage and Mercedes Benz of Anchorage.  Alaska USA Insurance Brokers sold its commercial insurance and employee benefits books of business to Acrisure.  Alaska Air Group Inc. acquired Virgin America.

 GCI and Liberty Interactive Corporation merged certain assets and liabilities to form GCI Liberty.

 The new Clare Swan Early Head Start Center opened in Anchorage at 800 Northway Drive. It provides eligible Alaska Native and American Indian families a safe and supportive learning environment for children six weeks to three years of age.  Brooke Sandoval-Banker launched FIRM 49, a digital marketing firm, in Anchorage.

 Avitus Group merged with The Growth Company.

 The Anchorage School Board established the Anchorage School District’s first STEM elementary school at Campbell Elementary.

 Northrim Benefits Group sold substantially all of its assets to Michigan-based Acrisure.

 Global Diving & Salvage added a new office in Juneau at 13395 Glacier Highway.

 Solitario Exploration & Royalty Corporation acquired Zazu Metals Corporation.

 Hyatt House Anchorage opened the first Hyatt Hotel in Alaska, located at 5141 Business Park Boulevard.

 Jacobs Engineering Group Inc. acquired CH2M HILL.

New Businesses/Locations Throughout Alaska, new businesses have been founded, new-to-Alaska franchises have been established, and new locations and branches of existing companies have been built.

 The Surgery Center of Wasilla opened on the rapidly expanding Meridian Park Medical Campus at 3190 E. Meridian Park Loop in Wasilla.  The Salvation Army established a new 24,000-square-foot Family Store in Eagle River at 12001 Business Boulevard Unit 3.

 Delta Leasing purchased substantial North Slope assets from MagTec Alaska.

 Alaska Regional Hospital opened a clinic, the Alaska Regional Community Health Clinic, at 3701 Mountain View Drive in Anchorage.

 RIVR, a new online radio station, launched in Alaska providing 24 hours of daily streaming content.

 Hub International Limited acquired the assets of Denali Alaskan Insurance, a wholly-owned subsidiary of Denali Federal Credit Union.

 New company EVENT! Alaska, a professional meeting and event planning company, opened at 110 Seward Street in Juneau.

 A Subway restaurant opened in Utiaġvik at 1611 Okpik Street.

 SouthEast Alaska Regional Health Consortium merged services with Alaska Island Community Services.

 Orangetheory Fitness, a personal training, interval fitness franchise, opened its first studio at 345 West 104th Avenue in Anchorage.

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 Southside Garden Supply, owned by locals Rob and Julie Martin, opened a new superstore in Anchorage at 2809 Arctic Boulevard. R December 2017 | Alaska Business

ALASKA NATIVE BUSINESS

Education and Empowerment

Image courtesy of TKC

TKC, Donlin Gold, and the Association of Village Council Presidents team up to bring a heavy equipment training and certification to Aniak to help TKC Shareholders obtain the employability skills they need in preparation for the Aniak Airport Project set to start in 2018.

Alaska Native scholarships and training advance culture, heritage, future

By Heidi Bohi

self-described geek, Blake Beatty was always a solid student. Even in his free time, he was more likely to play computer games with his other academic friends than hang out in one of the local Kenai parking lots. “It’s who I was,” he says. When a near-fatal car accident left him with a broken back and other health complications, Beatty was forced to drop out of Kenai High School his freshman year; he earned his GED a year after his classmates graduated and began working in Soldotna. He was ashamed of not graduating with his class, and the ensuing series of odd jobs were doing nothing to build his selfesteem as he bounced from pizza and furniture delivery to big box retail, all while watching as his friends began graduating from college. “I have to move on,” he remembers saying to himself one day. “I have to do something more.” 12

Not knowing about scholarships and training programs, Beatty never thought he would be able to afford a four-year degree. He registered for school full-time at Kenai Peninsula College and bartended at night to pay for his classes. But it had been years since he had been in a classroom. Terrified, and with no other financial or emotional support, his self-fulfilling prophecy was realized and he dropped the computer electronics class that was going to be the springboard for his career in computer electronics.

The CIRI Foundation “Always ask for help. If you feel like you are floundering, not understanding, stuck—ask someone. You aren’t in this educational journey alone.” As President and CEO for The CIRI Foundation (TCF), Susan Anderson has been offering this advice to TCF shareholders and direct lineal descendants like Beatty for eighteen of the organization’s thirty-five years. Established by Cook Inlet Region, Inc. (CIRI), one of Alaska’s twelve Alaska Native regional corporations with more than 8,800 shareholders, TCF is one of several programs offered through Alaska Native Corporations (ANCs) and other Alaska Native entities that provide educational and

training scholarships to high school graduates. Anderson, who has a master’s degree in education, is a program alumnus herself, as are all TCF staff. She likens her job to being a “fairy godmother every day” as she connects individuals and organizations to both raise and distribute TCF money. In addition to creating jobs for shareholders, one of the long-term goals of many ANCs is to be Alaska Native-managed. To help meet this goal, all twelve of the regional corporations and many of the other ANCs have some form of trust like the foundation, though CIRI’s $60 million endowment, which funds the foundation, is the largest and one of the oldest. Last year, TCF distributed $2.1 million to scholarship applicants, and this year it is expected to award just over this amount. Since CIRI’s inception, it has awarded more than $30 million in 16,000 awards to individuals, organizations, and businesses that advance Alaska Native people. “Education is the best dividend you can pay anybody,” Anderson says of the original thinking behind the program’s development. “It is one of the most lasting benefits for individuals because nobody can ever take that away from you—and it changes your personal and family trajectory.”

Alaska Business | December 2017 www.akbizmag.com

Money is just part of the story, though. Aside from contributing to economic selfsufficiency through education, the complementary—and no less important—part of the foundation’s mission is to help develop and maintain pride in the culture and heritage of their shareholders. Beatty, who is a direct lineal descendant and Dena’ina Athabascan from his mother’s side, is the perfect case study of how TCF and its sister organizations would like their scholarship programs to work. Academically, Beatty, now twenty-nine with regained confidence, decided on a professional path when he discovered an interest in accounting; in 2015 he graduated from the University of Alaska Anchorage with a bachelor’s degree in that field. Raised in a poor household with little structure, Beatty says that without scholarships from TCF and other programs that offer Alaska Natives academic support, college would not have been possible for him. To date, he has received a total of about $50,000 from TCF, the Kenaitze Indian Tribe, Ninilchik Native Association, and Alyeska Pipeline. Today he is a general ledger accountant for Cook Inlet Tribal Council and participates in their apprenticeship program and the Alaska Native Executive Leadership Program, all in preparation for transitioning into Alaska Pacific University’s MBA program next year. From there, he would like to get his CPA license and eventually go on to become an executive leader for an ANC.

The Kuskokwim Corporation Most scholarship programs like TCF that are geared toward advancing the Alaska Native population are for general tuition support, though recently several are becoming available that fund academic or vocational training programs in specific disciplines. The Kuskokwim Corporation (TKC), representing ten villages along the Middle Kuskokwim River region, established the Kuskokwim Educational Foundation, which provides scholarships to shareholders in the Middle Kuskokwim River region for college and vocational training. It has awarded more than $600,000 to date. Maver Carey, president and CEO of TKC, was one of the program’s first recipients, along with many TKC Board Members. The Donlin Gold Kuskokwim Education Foundation, for the first time this year, is making $50,000 a year available to TKC shareholders in scholarship education and vocational training funds related to workforce development opportunities resulting from the potential development of the Donlin Gold mine project. Once the mine becomes operational, funding levels will increase. In addition to a separate track for heavy equipment operation and safety training, the foundation will support vocational and professional opportunities needed to support a mining operation. The cooperative program between TKC and Donlin Gold was developed as a way for Donlin Gold to give back to the Southwest Region in which it will operate by helping create jobs in these communities and to ensure a well-trained labor pool for the proposed project, currently in the permitting phase, which www.akbizmag.com

would have an estimated twenty-seven year mine life once constructed.

GCI Hollywood Program A fellowship program to help promote Alaska Natives in Hollywood was recently launched by GCI and will send two selected content creators—including directors, producers, and playwrights—to the Hollywood Creative Forum in Los Angeles this February. The goal of the $10,000, statewide pilot program is to help students make connections that further their professional careers in the television, film, and digital industry, while promoting Alaska Native culture and content. “As an Alaska-born and-raised company, GCI works to support and promote Alaska Native culture, whether it’s through the programs

and services we offer or by advocating for more diverse representation in our industry,” Heather Handyside, senior director of corporate communications at GCI, says of the GCIWalter Kaitz Fellowship Program. Collaborating with the Walter Kaitz Foundation, a nonprofit that advances diversity within the cable industry and specifically the contributions of women and multi-ethnic cable professionals, the GCI-Walter Kaitz Fellowship serves as a catalyst for increasing diversity in the cable industry’s workforce, supplier base, and programming. Finalists are judged, in part, on content creation and industry experience, creativity, their biographies, cover letters, artistic statements, and ability to explain how the forum will help them further their careers. While applicants must have

Late 70s - early 80s VANguard Industries, Inc., a NANA joint venture, constructed rigs designed for the extreme conditions of Prudhoe Bay. These were the first arctic drilling rigs constructed entirely in Alaska.

Proven

Commitment

For almost four decades, NANA has delivered essential products and services to Alaska’s resource development industry. From engineering, design and construction, to fabrication, logistics and camp services – we’ve been there for our clients on the Slope and beyond. NANA companies’ expertise has helped shape our state, and we’re looking forward to the future.

NANA.com | P.O. Box 49, Kotzebue, Alaska 99752 | 800.478.3301

December 2017 | Alaska Business

The CIRI Foundation team celebrates TCF’s 35th Anniversary (left to right: Ginger Miles, Stacey Lucason, Tiana Walters, Tim Lucason, Rinnah Andrew, Kyla Morris, Eric Van Thiel, and Susan Anderson). Photo by Richard Perry

some experience with content creation, the review committee looks for applicants who capture authentic, uniquely Alaskan voices and present unusual storylines, Handyside says. The 2017 submission deadline has passed; however, Handyside is hopeful that this year’s pilot program is a success and will be continued again in the fall of 2018. This year’s finalists will be announced at the Anchorage Film festival early this month. In addition to the Hollywood fellowship, GCI has other programs that also target Alaska Natives and students in rural communities. Over the past decade, the GCI Scholarship Program awarded more than $2 million to college students in the Lower Kuskokwim Region. A different paid internship program helps students gain real-world experience and offers exposure to cutting-edge telecommunications technology while working at GCI. Entering its third year, the GCI Externship Program, part of its Workforce Development Project, recruits and trains Alaska teachers to participate in a two-week intensive training from GCI’s Anchorage and Bethel facilities so they can incorporate science, technology, engineering, and mathematics (STEM) education using an applied approach into their curriculum in rural classrooms.

Cultural Heritage as the Key to Success, Survival In addition to offering financial backing, many of the scholarship and training programs available through ANCs and other Alaska Native entities include support that focuses on cultural heritage appreciation, preservation, and advancement. While less tangible than a scholarship check, this component is no less important for succeeding in both the workplace and life. “We know from research that the more grounded a person is, the better they will do in all areas of their lives,” Anderson says of TCF and other scholarship programs that focus on cultural knowledge and appreciation. “Knowing who they are culturally gives them resilience and the confidence to do other things—connecting education, culture, and heritage is key.” Beatty did not realize how detached he was from his heritage and culture until, through the help of TCF and Anderson, he found what he had always been looking for: his personal identity. When he was eight, he and his family moved to Kenai from Olympia, Washington. Coming from a city, he had not grown up subsistence 14

hunting and was not immersed in Alaska Native traditions and cultural ways. If it weren’t for his close relationship with his grandmother, Bobbie Oskolkoff, who is responsible for telling him about TCF scholarship opportunities, he may not have realized the significance of what it means to be an Alaska Native. “I went from feeling like an imposter to being part of it—to being accepted for who I am: I am an Athabascan. I am a CIRI descendant from the Ninilchik area. I am an Alaska Native.” It is this sense of pride and passion, combined with his education and professional experiences, he says, that have completely changed his life. It is why he wants to give back by inspiring others who need support through TCF alumni outreach, and by eventually being part of the next generation of ANC leaders. In October he was a speaker for Indigenous Peoples’ Day, and he has spoken to various youth groups. “I have an obligation to make sure Native corporations grow and prosper for as long as they can, just because of what they represent,” Beatty says. When Beatty was an apprentice for Cook Inlet Tribal Council, he was able to choose a mentor at TCF. He requested Anderson and she agreed. Her door has been open to him since. They discuss everything from how to communicate in the workplace to management styles, professional development, self-identity, and how to support the next generation of Alaska Natives and to help them understand the opportunities available through the CIRI family. “She pushes me outside of my comfort zone,” he says. “She has made me stretch.” “We are not just a funder,” Anderson says. “For many people, we are their only connection, and their only source of encouragement. We are not counselors, but we have had a lot of these conversations over the years and can help them make decisions. We are a trusted source.”

Progress for the Next 10,000 Years First Alaskans Institute (FAI), a nonprofit dedicated to advancing Alaska Natives, approaches this ever-evolving undertaking through more traditional learning models, focusing on developing capacities of people and communities that are built on indigenous methodologies that elevate collective wisdom, rather than “expert-to-student” styles of learning, recognizing that indigenous education follows a continuum that requires community engagement, information and research, collaboration, and leadership development. “We think of it as developing characteristics, not titles,” Jorie Ayyu

Paoli, vice president and Indigenous Operations director, says. “Leadership is something you do—not something you are.” “Because we don’t consider ourselves the experts, we convene and create space to share knowledge more broadly, trying to tap into the collective wisdom in any given room.” Everything FAI does falls into four areas. The Alaska Native Policy Center advocates for catalyzing Alaska Natives and allies to advance self-determination through dialogue that informs policy-making at all levels and by supporting thriving communities and governance. They advance dialogue throughout Alaska on topics that include racial equity and decolonization, rethinking access and management systems impacting salmon and people, assessing and reimagining how the scientific community engages with indigenous peoples, and discussing and visioning a post-oil economy. The Indigenous Leadership Continuum recognizes the inherent leadership of indigenous people throughout their lifetimes and intersects with the community at these different life stages. They host the Elders & Youth Conference, held in conjunction with the annual Alaska Federation of Natives Conference, encouraging youth and elders to utilize traditional Native values and practices as the foundation for defining and advancing success for Native communities. Their summer internship program places Alaska Native graduate and undergraduate students in “partnering organizations” that provide management-level work experience while immersing in cohort-based indigenous learning that taps into the wisdom of their cultures as the foundation for leadership. The public policy fellowship program places interested young Alaska Native leaders in legislative offices in Juneau to give participants hands-on experience working with the legislative and political process. FAI endeavors to “indigenize” their internal operations through the third operational area: Indigenous Operations. Paoli says, “We recognize that as indigenous peoples working with a vision of progress for the next 10,000 years, we have a much higher standard than most 501(c) (3) nonprofit organizations. As such, we tap into the wisdom that has sustained our cultures for thousands of years to operationalize them into our work, every single day.” Community engagement, the fourth component, is dedicated to being good relatives who contribute to healthy and thriving communities. This includes publishing the First Alaskans magazine to share the diaspora of Alaska Native perspectives and voices of Native peoples, communities and ways of life, and supporting activities that stand in solidarity and reciprocity with Native peoples and the expression, exertion, evolution, and exercise of their voice. “Alaska Native people know best what is best for Alaska Native people,” is an operating truth and principle behind everything FAI advances, Paoli says. R

Heidi Bohi is a freelance writer who has written stories about Alaska since 1988.

Alaska Business | December 2017 www.akbizmag.com

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Meticulous Records, Professional Accounting Offer Help Ahead of Proposed Tax Law Changes Preparing for efficient year-end closeout processes

“Any balance that hasn’t changed from last year should be investigated if the reason is not obvious on the surface. Inventory balances should be adjusted to the physical inventory count or perpetual inventory records. Depreciation should be calculated and recorded.”

By Tracy Barbour

t’s that time of year again, full of holiday office parties and gift giving—and yearend accounting. Year-end—the closing adjustment period of a company’s accounting year—is important because it generates financial statements that will be used for tax preparation, future reference, and critical decision making. And if businesses take the time and necessary steps to ensure their year-end accounting is properly completed, they can step into 2018 with reliable balances and peace of mind.

Preparing for an Internal Closeout Year-end procedures for businesses involve two phases. The first phase takes place before yearend and typically includes year-end tax planning and preparation for an orderly closing of the books. “For very active businesses, tax planning is often the primary motivator for getting the accounting in good enough shape to estimate net income for the year and to do it early enough to allow for implementing late-year tax planning strategies,” says Gerald Haugeberg, managing partner of Cook & Haugeberg of Fairbanks. “Management is usually very involved in this aspect of the work, so you have the advantage of their direct participation.” The second phase of year-end preparation happens after the year has closed. This next step in the process entails adjusting and reconciling accounting records to give to outside accountants for tax return and/or financial statement preparation. All of the asset and liability accounts should be reviewed and reconciled or adjusted, as needed, to ensure ending balances are shown correctly. The amount of year-end work actually conducted by the business, as opposed to an outside accountant or tax preparer, varies considerably. In general, a company’s internal accounting capability depends on the background and experience of its people, Haugeberg says. For instance, a small operation may only be able to maintain 16

—Gerald Haugeberg Managing Partner, Cook & Haugeberg

Image courtesy of Cook & Haugeberg

Gerald Haugeberg, Managing Partner Cook & Haugeberg

some form of electronic check register. “In cases like that, the outside accountant is expected to provide the year-end accounting necessary to get the records ready for a tax return,” Haugeberg says. “In other cases, the company may have a well-staffed, experienced accounting group fully capable of getting the year-end accounting ready for tax return preparation.” When closing out the books internally, the company’s in-house accountant should review the preliminary year-end balance sheet closely, Haugeberg says. All accounts with thirdparty statements, such as bank accounts, loan balances, and credit card balances, should be reconciled with the statements and adjusted as necessary. The review should also look for anything that seems unusual. “Any balance that hasn’t changed from last year should be investigated if the reason is not obvious on the surface,” he says. “Inventory balances should be adjusted to the physical inventory count or perpetual inventory records. Depreciation

should be calculated and recorded.” Haugeberg points out that the type of business and its specific accounting needs determine what the basic year-end procedures should be and what priority specific accounts should be given. For example, a retail business selling merchandise will be oriented toward inventory and inventory control, sales and cost of goods sold, and other accounts directly related to the selling process. A service business may be more focused on the billing and collection cycles. And construction contractors will want their job cost records to be as complete and as accurate as practical. “Most businesses share common accounting issues with some degree of complexity, but the relevance will depend on the importance of them to the specific business,” he says. It’s a good idea for companies to take the time to review their prior-year tax documents, says Joseph Moore, CPA, principal of Altman Rogers & Co., which has offices in Anchorage, Juneau, and Soldotna, because there may have been unexpected issues that arose last year that will likely come up again during the current year. The accounting staff for the business should begin to hone in on the usual time-consuming reconciliations that will be needed for year-end. New activities, asset acquisitions or dispositions, and ownership changes should all be documented. “Preparing a current set of financial

Alaska Business | December 2017 www.akbizmag.com

“If the year-end tax return or financial statements are ultimately prepared by a CPA, the CPA will perform procedures to confirm that the year-end close out was or will be done correctly. It’s not rare for additional adjustments to be made and given to the client post-closing.”

—Joseph Moore, CPA, Principal, Altman Rogers & Co.

the year-end tax return or financial statements are ultimately prepared by a CPA, the CPA will perform procedures to confirm that the yearend close out was or will be done correctly,” he says. “It’s not rare for additional adjustments to be made and given to the client post-closing.” BDO Tax Partner Chad Estes, CPA, says recording all the transactions is a good place to start when preparing for an internal closeImage courtesy of Altman Rogers & Co.

statements and a list of non-recurring items and questions, along with scheduling a meeting with your CPA early in the fourth quarter, is highly recommended,” he says. Moore says that he doesn’t see the need for companies to take any special steps at year-end as long as their in-house accounting staff have adequate accounting skills and are comfortable reaching out for assistance if needed. “If

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Joseph Moore, CPA, Principal Altman Rogers & Co

out of the books. And if businesses have done monthly or at least quarterly closes, it makes year-end much simpler. “You have fewer transactions to deal with,” he says. “You’ve got a lot of your work already done for you.” Once the accounting staff ensures all transactions are recorded and obtains year-end balances from third parties, it’s time to perform a two-year comparison. The goal is to see if everything lines up, something Estes calls the “Make Sense” test. “It’s a great way to see if things look like they should,” he says. “If they don’t, you’ve got a red flag, and you need to dig a little bit.” The two-year books comparison is essential. And it’s vital that if conducted internally, there is a second set of eyes—such as a manager or business owner—available to facilitate the process. “The business owners know their business the best,” he says. For some companies, another step in the year-end close-out is to take inventory. Businesses must count or measure items such as property, goods in stock, and building contents to fully reconcile their year-end accounts.

Prepping to Close Using an Outside Accountant When an outside accounting firm is involved with closing out the books at year-end, Estes says, communication is a fundamental requirement. The CPA firm needs to know the client’s deadline for completing everything, and this deadline must be made clear early in the process—at least thirty days in advance of the due date. “We want to start reaching out to make sure they have everything scheduled to ensure we can take care of them in the proper manner,” he says. “Obviously, the

Alaska Business | December 2017 www.akbizmag.com

“In this day and age, there are lots of secure file exchanges and portals where you can upload things securely. Or they can bring in hard copies, and we’ll convert them to electronic data. Having all the documents and getting them to us in a timely manner is key.”

Chad Estes, CPA, Tax Partner, BDO

more lead [time] we can get the better.” The accounting firm requires the same third-party documents used by the company

when it closes out internally; these documents include credit card statements, bank statements, loan statements, and inventory sheets. The best and preferred way to obtain this kind of information from clients is electronically, Estes says. “In this day and age, there are lots of secure file exchanges and portals where you can upload things securely,” he says. “Or they can bring in hard copies, and we’ll convert them to electronic data. Having all the documents and getting them to us in a timely manner is key.” When companies outsource or delegate year-end closing to a third party, it’s a totally different ball game, says Shane Baird, CPA. “[Contractors] will want good information in order for them to do what they have been delegated to do,” says Baird, a director (partner) in training with Anchorage-based Thomas, Head & Greisen. “There will be user controls that they will expect the business to do.” Clients of outside accounting firms can delegate as much of the year-end closeout

Image courtesy of Thomas, Head & Greisen

Image courtesy of BDO

—Chad Estes, CPA, Tax Partner, BDO

Shane Baird, Director (Partner) in Training, Thomas, Head & Greisen

process as they want, but they can never delegate their responsibilities. “You still have a fiduciary responsibility to monitor and oversight those,” he says. Therefore, clients should conduct an evaluation of the services and processes involved to ensure their needs are being addressed. “The client is still responsible for year-end reporting, it’s just now the roles and goals

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—Shane Baird Director (Partner) in Training Thomas, Head & Greisen

have changed,” Baird says. “Instead of being a preparer, they are more of a reviewer.” Baird says that before outsourcing year-end preparation, clients should properly vet any potential outside accounting firm by requesting references, scrutinizing the company’s reputation, and considering whether the firm has a history of providing high quality services.

Other Important Strategies Whether businesses close out their books with an in-house or third-party accountant, there are some general strategies they can apply to make the process easier. For example, Baird recommends that companies get all the facts and circumstances and maintain adequate documentation for all of their transactions. “Each transaction is a tax position that is subject to an audit or other scrutiny,” he says. “As CPAs, we tend to be on the conservative side. We want to make sure that all their tax positions are substantiated and defendable.”

will self-populate transactions. This can speed up closings, making the whole process easier. It’s also important for businesses to use good descriptions when recording items. For instance, instead of listing a purchase as simply “equipment,” they could describe it as “a Ford 150 truck.” Estes says: “You should take the time when you’re recording transactions throughout the year to provide enough information for the future. Then you don’t have to remember what you did eleven months ago.” Haugeberg encourages companies to do as much as they can in-house to prepare for yearend accounting. This way, they can review the preliminary trial balance for accounts that need adjustment or just look wrong on the surface. “Company personnel and management can spot problems quickly if they have the time to give it a good look,” he says. While they should do what they can inhouse, businesses should also know their limits. “In many cases, the added fees for professional help with year-end accounting is less expensive than the added salary cost of more qualified company personnel would be,” Haugeberg says. Moore, like Baird, also advocates getting an early start on year-end preparations. Businesses need to give themselves enough time to accomplish what needs to be done to get fully prepared. “Depending on the size of the business and its number of locations, plenty of time should be allotted for year-end work,” he says. Allowing ample time for year-end preparation is especially important given some of the tax law changes and tax filing deadlines. This year, for instance, tighter filing deadlines are still in effect that enable pass-through entities to file and report tax information prior to the owners’ filing deadlines. The Section 179 expensing of capital assets ($500,000 limit)

“You should take the time when you’re recording transactions throughout the year to provide enough information for the future. Then you don’t have to remember what you did eleven months ago.”

—Chad Estes CPA, Tax Partner, BDO

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People need to gain access to real-time information, online accounts, online statements, and to possess the ability to work within the cloud, Baird says. If companies want to stay on the cutting edge, they need to jump on board with technology. “Become paperless,” Baird says. “There’s no need for treasure hunting for documents. When you’re paperless, it’s all in one spot.” Baird also emphasizes the need for timely and clean closeouts. He encourages businesses to have good systems, a good team, start early, and be proactive. “Consult with professionals,” he says. “If you consult with your CPA quarterly, there will be less surprises, everybody will be on the same page, and it will make everything more efficient and smooth.” Estes also urges companies to use technology to their benefit. For example, small businesses can use QuickBooks and other tools that

was made permanent in 2015. And bonus depreciation, which allows businesses to claim additional first-year depreciation, remains in place until 2019 with phase out provisions. Also, as of October, the White House and Congress began touting significant tax law changes. According to Moore, crucial changes could affect small business tax rates, a repatriation tax holiday for US companies, the immediate expensing of a business investment, and the repeal of the alternative minimum tax. “Any change to the tax law will require cooperation from both the White House and Congress,” he says. “Stay tuned, as any changes could also be retroactive until the beginning of the year.” R

Tracy Barbour is a former Alaskan.

Alaska Business | December 2017 www.akbizmag.com

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Healthcare

Extreme Arctic Winters Pose Risks to Community Health Icy roads, sidewalks, lack of sunshine, extreme cold lead to illness and death every winter

By Judy Mottl

eeks and weeks and weeks of fifteento twenty-four hour sunlit days make Alaska a wonderful place to explore—in the summer. But such an opportunity also comes with a big caveat: months and months of darkness and a frigid, deep cold settle over the state in the winter. Fairbanks, among other areas of the state, experienced temperatures of -50 degrees Fahrenheit in early 2017. Few other locales (if any) in the United States can lay claim to such unique seasonal attributes and everyday living conditions. These seasonal extremes also present a wide set of health and safety risks for the state’s nearly 740,000 residents. 22

SAD Extensive periods of darkness—from October to January in some regions of the state— contribute significantly to Alaska’s inordinately large segment of residents suffering from Seasonal Affective Disorder (SAD). A reported 9.2 percent of Fairbanks’ population is afflicted each year, according to research led by Dr. Norman Rosenthal, in contrast to 1.4 percent in Sarasota, Florida, and 4.7 percent in New York City. A pamphlet from South Peninsula Hospital in Homer puts the population affected by SAD at 10 percent. SAD is marked by feelings of lethargy, increased appetite, and irritability, and its prevalence in northern latitudes worldwide is estimated to be between 10 and 20 percent. Most times those who experience severe SAD

typically don’t last more than a few seasons in the climate, says Dr. Gandis Mažeika, a physician with the Alaska Sleep Clinic, which has four locations in Alaska including in Anchorage and Fairbanks. Mažeika, citing a US National Library of Medicine and National Institutes of Health study on SAD prevalence in Alaska, says SAD tends to occur more often in women and is less common among residents who are forty years old or older. “I don’t believe that SAD is necessarily a rite of passage for all newcomers to Alaska,” says Mažeika, adding that most people have relatively low sensitivity to long nights. “Only a relatively small percentage of people have enhanced sensitivity to ambient light levels, but these individuals can be quite impacted.”

Alaska Business | December 2017 www.akbizmag.com

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While SAD may affect more Alaskans than US residents in other locations, treatment options remain the same. Mažeika says new LED visors that provide more light exposure than stationary lights and mood remedies for mild cases may be effective. “For those who are able, a trip south to Hawaii, California, or Mexico can be powerfully restorative and recharge the mood and energy batteries.” At South Peninsula Hospital, employees are encouraged to use SAD remedy lights, which are a part of the employee wellness reimbursement program. The hospital also provides education on SAD through bulletin boards and brochures, the latter of which is shared through community locations. A hospital physician even led a community SAD presentation during a winter carnival event. The seasonal disorder, which is often called the winter blues or cabin fever, is just one of several extreme winter related health issues and potential dangers prompting many Alaskans to seek out medical help.

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Winter Dangers: Recreational Injuries, Frostbite, and Falls On the list of winter dangers, along with SAD, are hypothermia, frostbite, injuries from snow-related recreational activities such as snowboarding and skiing, boating accidents, and even wildlife attacks. The Alaska Department of Health and Social Services doesn’t track SAD cases, as the seasonal affliction falls within mental issues reporting and many SAD patients are typically treated by private behavioral health providers, according to Clinton Bennett, the department’s media relations manager. But the agency does track other extreme winter-related treatments and traumas at the state’s medical centers and hospitals. Between 2012 and 2016 there was an annual average of thirty-seven hypothermia and frostbite cases, twenty-seven ski and snowboarding injuries, eight sledding-related injuries, and more than seventy snow machine related injuries. Not on that data list, however, is one of the most common winter-related issues treated by emergency room physicians—injuries due to falls and slips on icy walkways and roadways. “Winter in Alaska is cold, dark, and usually covered with ice and snow. For our patients, this increases the risk of slips and falls,” says Sean Murphy, emergency management specialist/EMS liaison at Alaska Regional Hospital, based in Anchorage. The potential for injury due to falls is something the hospital’s staff deals with regularly during extreme winters, says Murphy. “Our facilities, security, and contracted maintenance work diligently to stay ahead of winter-related hazards but cannot eliminate all risks as we endure a winter season that can last nearly half the year. In addition to maintaining the grounds, our facilities department offers free ice cleats to all hospital staff.” Murphy says many of the hospital’s ER visits are due to treacherous highways and streets that residents deal with on a daily basis during winter. “The roads are usually

Alaska Business | December 2017 www.akbizmag.com

—Sean Murphy Emergency Management Specialist/EMS Liaison, Alaska Regional Hospital

covered with several inches of ice all winter, we can see freeze and thaw patterns that increase the travel risk, and, not least of all, there is only one road into Anchorage, both north and south, from surrounding towns,” explains Murphy. As a result, the risk of a winter accident is significant. Murphy says Alaska Regional Hospital, aware of the potential for its employees to be stranded or trapped on icy roads, provides staff with a winter preparedness primer during job orientation. “This includes instructions to keep winter clothes, boots, blankets, and signaling devices in their cars through the winter months,” Murphy says.

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At South Peninsula Hospital, ice-related falls come in second to cases of viral respiratory infections. The Homer hospital also provides staff members with cleats to help employees avoid landing in their own ER, according to a spokesperson. The months of icy cold weather can also lead to increased risk of carbon monoxide poisoning from the use of what Murphy calls “alternative” heating sources, and there is great potential for hypothermia and frostbite for those who may not have a suitable heated environment. The noxious poisoning falls under the state’s data reporting of unintentional injuries, which have increased 11.1 percent since 2007.

“This time of year brings an increased risk of house fires from wood stoves and space heaters, as well as an increased number of cases of carbon monoxide poisoning from non-traditional heat sources, such as unsound wood stoves and oil/kerosene space heaters,” says Murphy, who adds winter is especially hard on the state’s homeless population, many of whom choose not to stay at shelters and instead walk the streets and sleep in homeless camps. “This leads to a yearly spike in exposurerelated afflictions such as hypothermia and frostbite. Sadly, there are usually a number of exposure-related deaths each winter among the homeless population. Often their bodies are only found as they are uncovered by the melting snow come spring,” says Murphy, recalling that the year 2010 recorded a particularly cold winter and the hospital saw thirty exposure-related homeless deaths. The Alaska Department of Health and Social Services reports thirteen deaths due to exposure in 2016, down from eighteen in 2015. In 2011 there were twenty exposure deaths and nineteen in 2007, according to the “Health Analytics and Vital Records” report issued by the department’s division of public health. Alaska Regional Hospital conducts clothing drives each year to help the underserved and homeless in need of proper winter clothing. It participated in The Clothesline Project this year, which gave away clothing and school supplies to more than 500 children in need.

December 2017 | Alaska Business

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“Both the inpatient units and our emergency department keep supplies of both new and gently used warm clothing to assure that patients leave the hospital appropriately dressed,” says Murphy, who adds the state’s economic downturn may make such issues even more ubiquitous. “I’m guessing here, but I believe this winter will bring the unfortunate combination of more people and fewer resources to help them,” he says.

Boosting Winter Safety Just like Alaska Regional Hospital, Providence Alaska Medical Center, based in Anchorage, reports that fall-related injuries because of icy walkways and roadways is the top reason patients over the age of thirty visit the facility’s emergency department. In fact, 43.3 percent of injuries during the winter are due to slips and falls, according to a hospital spokesperson, and 24.5 percent of winter falls are related to ice and or snow. That’s a principal reason Providence initiated an Injury Prevention Outreach program in 2014 that provides ice cleat education, distribution, and a cleat fitting program in the Anchorage community. In 2016 the hospital provided ice cleat fitting and safe winter walking education to the Faith Community Nurses and Anchorage Literacy Project Peer Leader Navigators. The nurses, representing twenty-five different faith communities, were given 200 pairs of ice cleats for congregation members. Another 140 were given to the navigators, who serve as health liaisons to ethnically diverse communities. This past October a total of 404 pairs of ice cleats and safety education outreach were made available to both groups for the upcoming winter season. The hospital’s Injury Prevention Outreach program also includes a coordinated reflector distribution effort in Anchorage, which started in 2000. The program focuses on both adult and pediatric populations. “Given Alaska’s seasonal low-light wintertime conditions, making reflective zipper-pulls and adhesive reflective material available to community members, especially those who are frequent pedestrians and bicyclists, is a priority,” states an information sheet on the program. In 2016, 400 clip-on and reflective materials were provided to the Faith Community Nurses and Navigators and a homeless teen shelter received 200 reflectors. In addition, 3,650 reflective tape strips and 1,940 reflective zipper-pulls were given to elementary school children in Anchorage. Most recently the outreach program received a donation of 10,000 brilliant reflective strip packets and plans to expand distribution to more faith communities, schools, and emergency shelters this winter season, all in the hope that the community will be warmer, safer, and protected against Alaska’s seemingly interminable winters. R Judy Mottl writes about important issues country-wide with an affinity for Alaska.

Alaska Business | December 2017 www.akbizmag.com

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Healthcare

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annual maximum benefit of $2,000. ployers of all sizes. In Alaska, it caters With Denali’s vision insurance, to small groups with fewer than fifty employees can receive an annual employees, medium groups with exam for glasses with standard lensfifty-one to one hundred workers, es at no cost and an allowance of up and large groups of more than one to $150 for a frame or contact lenses. hundred employees. “SupplemenDenali FCU also offers critical tal insurance is very common in illness, accident, and cancer insurAlaska,” says Jim Grazko, president ance through American Fidelity. of Premera Blue Cross Blue Shield of By Tracy Barbour Employees pay 100 percent of the Alaska. “And voluntary insurance, Jim Grazko President, Premera oday, there are a variety of ancillary premium, which is based on genwhere the employee pays for it, is ofBlue Cross Blue or supplemental health and wellness der, age, and level of coverage, and ten offered [by employers].” Shield of Alaska insurance options that employees can receive cash benefits for claims. Dental coverage is usually added Image courtesy of take advantage of to protect themselves, their However, starting in 2018, the credit on as supplemental insurance. In Premera Blue Cross families, and their finances. This additional union will no longer provide group fact, about 75 percent of Premera’s Blue Shield Alaska coverage gives added peace of mind and is in- dental and vision coverage with its employer groups purchase dental creasingly being used to augment traditional health insurance. Employees will insurance from the company, says health coverage in workers’ benefits packages. have the option to purchase them Anchorage-based Grazko. Hearing The most common types of supplemental separately as a stand-alone option. and vision insurance are also cominsurance are dental, vision, life, short-term “So if employees don’t need health mon add-ons for employers. disability, accident, critical care, hospital insurance, they can select our vision There’s a cross-section of comconfinement, and long-term care. These in- and/or dental insurance,” Alinen panies offering supplemental insursurance products are available in Alaska says. “It will provide flexibility for ance to their employees. Manufacfrom many companies: among them are Pre- our employees to select the benefits turing plants and union shops, in mera Blue Cross Blue Shield Alaska, Colonial they ultimately need.” particular, are more likely to extend Matt McLaughlin Life & Accident Insurance Company, and Incidentally, Denali provides this perk. Employers’ contribution Ancillary Product New York Life Insurance Company. health insurance for all of its emtoward the cost of supplemental inManager, Blue Cross Alaska employers often provide ancillary ployees who work at least thirty Blue Shield of Alaska surance varies, with most paying 75 insurance options as an extension of their hours a week. Health insurance covpercent of the premium for employImage courtesy of health insurance coverage. They think of erage for eligible employees kicks in ees and zero percent for dependents. Premera Blue Cross Blue Shield Alaska these products as valuable enhancements to the first month following sixty days In its group dental market, Preemployee health and wellness benefits. De- of employment. The company self-funds its mera features a “high, medium, and low senali Federal Credit Union is a prime example. health insurance and uses a third-party ad- lection” of products to provide flexibility to As part of its health insurance, Denali FCU ministrator to process claims. “We have two employers, according to Matt McLaughlin, includes dental and vision insurance. The different health plans: a standard PPO plan ancillary product manager of Blue Cross Blue credit union’s employee benefits package also with a $1,000 deductible with $30 copays and a Shield Alaska. Premera offers plans that cover features long-term disability coverage, which high-deductible health plan with a $2,600 de- the basics (like routine office visits) and also has takes effect after a ninety-day waiting period ductible that can be paired with a health sav- broader plans that cover oral surgery, bridges, and covers up to $6,000 a month, according to ings account,” Alinen says. and implants, for example. With all of Premera’s Assistant Vice President of Human Resources Health insurance, Alinen says, is an im- plans, there is typically a member cost share for T.J. Alinen, SHRM-SCP, SPHR. The company portant component of an employee benefits services such as root canals and crowns. pays approximately 90 percent of the cost for package. “It’s part of their compensation… Most of Premera’s popular dental insurance its employees’ health insurance and 75 percent and it makes a difference to employees,” he plans with employers cover preventive servicfor their dependents. says. “If you can provide good benefits to em- es in full. Plan maximums—the total amount Denali offers a typical amount of coverage ployees, you can make a measurable differ- that the insurance will pay—can range from with its life, dental, and vision insurence in their day-to-day lives.” $1,000 to 2,000, with the most common plan ance options. It provides group term maximum being $1,500. Employer groups of life insurance—which also includes The Importance of Premera can choose to cover in- and out-ofaccidental death and dismemberFlexible Coverage for network providers in different ways. ment benefits—at an amount that Groups of All Sizes This year, the company launched a core is twice the employee’s annual pay Premera Blue Cross Blue Shield of dental plan in the small group market. “It covup to $300,000. (Group term life is Alaska sells a range of supplemen- ers more common services like preventive visprovided to all eligible employees, retal dental, vision, and hearing plans its, periodontal care, and some minor restorgardless of whether they elect health to businesses and individuals. Pre- ative procedures such as fillings,” McLaughlin insurance.) The company’s dental mera and the Blue Cross Blue Shield says. “But it leaves out some of the major serinsurance covers preventative care Association also offer free identity vices such as implants.” This core dental plan T.J. Alinen SHRM-SCP, SPHR, (cleanings and an annual exam) at protection service benefits to new gives employers more flexibility to meet their Assistant Vice 100 percent, routine services (such as and existing customers of self- budgetary and benefit goals. President Human fillings) at 80 percent, and major serfunded groups. Companies looking to cover a broader set of Resources, Denali vices (crowns, bridges, and oral sur- Federal Credit Union Typically, Premera works through services may consider offering one of Premera’s gery) at 50 percent. Coverage outside Image courtesy of Denali producers or brokers to sell its sup- more comprehensive dental packages. They of preventative care is subject to an plemental insurance products to em- could add orthodontics, an option that comes Federal Credit Union

Alaska Business | December 2017 www.akbizmag.com

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HEALTHCARE SPECIAL SECTION | HEALTH INSURANCE

with most of Premera’s dental insurance. Premera voluntary plans are another viable option for employers with a limited budget. “If they can’t afford to offer a full benefit plan for dental,” he says, “they can choose to offer a voluntary plan in a group-type setting.” As part of its product design, Premera strives to present different flavors of products to help employers manage their overall benefit costs. This approach is something the company will continue to build on in the future, McLaughlin says. Premera is very intentional about developing products to satisfy clients’ supplemental insurance needs, Grazko says. He elaborates: “We don’t just design our products for ancillary benefits in a vacuum. We go out to our employers and producers to see what people are interested in… We watch what people are buying then we adjust how we design our plans.” The company also works with employers to help modify their insurance coverage to meet their changing requirements. “One of the things Premera is good at is working with employers and providing different ways for how they can adjust their insurance options for employees,” Grazko says. “Employers look at us as a trusted advisor, and we are happy to consult with them.”

2/21/17 3:09 PM

December 2017 | Alaska Business

HEALTHCARE SPECIAL SECTION | HEALTH INSURANCE

they were to purchase insurance outside of the workplace. There’s also minimal underwriting involved—which means fewer health-related questions are required for workers to qualify. And depending on the size of the organization, coverage may be available on a “guaranteed issue” basis during enrollment. “Even with an account with as few as ten employees, we can often provide guaranteed issue for disability, critical illness, and life insurance policies,” Whitfield says. “It means every employee can qualify for coverage… regardless of their age or health situation.” In addition, some types of voluntary insurance are “guaranteed renewable.” This allows employees to purchase a plan and continue to receive coverage as long as the pre-

mium is paid on time. Individual voluntary coverage is also portable, meaning employees can keep their coverage even if they change jobs or retire. Many employees choose supplemental insurance, in part, because the benefits from covered claims are paid directly to them. “Employees want and buy these plans because the cash comes directly to them to use however they need,” Whitfield says. Employers generally choose to offer voluntary insurance to give all their employees the opportunity to purchase different types and amounts of insurance at affordable rates. Offering voluntary insurance also helps companies attract and retain highquality employees, Whitfield says. The kind

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of Alaska businesses that offer voluntary insurance vary, ranging from companies with five employees to those with hundreds and thousands of workers. “We all need quality employees to grow our business and remain profitable. Besides, if you are a caring employer, offering insurance is a way to make a major impact on employees’ lives.” In terms of how much coverage employees are choosing with Colonial Life’s plans, coverage for voluntary life insurance tends to be in the $100,000-to-$200,000 range. This is significantly more than the group coverage many employers provide and adds much-needed protection for families that are often underinsured, according to Whitfield. The most common disability coverage amount employees opt for is $3,000 a month, with the maximum coverage amount being $6,500 a month. Critical illness insurance plans are available in many levels, with $20,000 worth of coverage being a popular amount. Whitfield is passionate about promoting the benefits of Colonial Life’s critical illness insurance. Alaska has the highest healthcare costs in the country, and a cancer diagnosis, heart attack, or stroke can come out of the blue, she says. Critical illness coverage can provide extra money and peace of mind to weather a health-related storm. “It’s like a living life insurance policy,” Whitfield says. For this reason, she feels it is vital for employers to consider offering a critical illness plan in addition to health coverage. Even the best medical insurance won’t cover all costs, especially when combating a major illness. In addition to copayments and deductibles— which can be several thousand dollars with today’s high-deductible health plans—a family could face many other non-covered expenses, such as travel for treatment, child care, and lost wages. “When employees aren’t worried about paying the bills,” Whitfield says, “they can recover quicker and get back to work sooner.” Colonial Life’s dental and life insurance products are also common add-ons with employers in Alaska. Identity theft, legal, and telemedicine plans are also becoming increasing popular with consumers of all demographics, Whitfield says.

Many Supplemental Insurance Options New York Life also offers an array of supplemental insurance products to meet the varied needs of consumers. Its life insurance options include term life, which is for a specific time; whole life, which provides lifetime coverage and builds cash value; and universal, a flexible cash-building option. Most companies that provide benefits include group life insurance with the health insurance plans they offer employees, according to Linda Hulbert, a Fairbanks-based independent agent for New York Life Insurance Company. Life insurance can be one of the products an employer offers at its discretion. Employees may be able to purchase extra coverage and have the premium deducted from their paychecks. “In today’s competitive economy, employers are increasingly making life insurance available to their employees as

Alaska Business | December 2017 www.akbizmag.com

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an extra benefit,” Hulbert says. Life insurance is an important part of estate and retirement planning for people of all ages. The death benefit proceeds from a life insurance policy are generally tax free. “It’s available to take care of medical bills, to fly family members in to attend a funeral, and to give peace of mind to survivors,” Hulbert says. “It’s money that enables you to catch your breath and reorient your life.” Hulbert says it’s essential for people to plan ahead and purchase life insurance when they’re young and healthy. “You can’t always depend on being able to get life insurance because your health can change in Linda Hulbert a heartbeat,” she says. Independent Agent, New York Life “It’s really important to get life insurance when Insurance Company Image courtesy of you’re healthy to keep New York Life your rates as low as possible. Some of my clients may only have a shortterm need for life insurance and can benefit from purchasing term insurance for a limited period of time. Others prefer to have long-term insurance coverage and find whole life and universal life coverage to be better options.” Life insurance can also be an effective way for individuals to pass on assets to someone or something they care about. Hulbert says, “How do you want to be remembered and by whom do you want to be remembered? Life insurance can be a legacy for your children, community, or a favored charitable organization.” Unfortunately, most people underestimate the amount of life insurance they actually need. If they have children, for example, they should consider their ages, whether their spouse can work, and what it will take to maintain their family after they die. “I suggest that they evaluate what they think they will need and what they want for their spouse and children,” Hulbert says. “Do they want them to be able to stay in the house? Do they want to be able to provide for their kids’ education?” In addition to life insurance, New York Life also offers employer disability and longterm care plans. Disability is important coverage, Hulbert says, but it’s a type of insurance that many people don’t have and may not be offered by their employer. Nevertheless, it’s valuable protection to help replace lost income, should an employee have an accident or suffer from a serious illness. Extended care planning also can be a critical element in a person’s retirement plan, especially for workers who are looking to retire sooner rather than later. “People are living longer life spans and may face very costly care needs in their later years,” Hulbert says. “Some may spend their assets down and have to go on Medicaid. That’s an unfortunate occurrence. Planning for long-term care takes a lot of forethought, but it is an important part of a retirement plan.” R Tracy Barbour is a former Alaskan.

Alaska Business | December 2017 www.akbizmag.com

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Skin Deep Beneath the surface of Alaska skin conditions

hen Jenny Vanderbilt was first diagnosed with eczema at the age of ten, the clinic nurse in Seward told her mother not to worry about the red, flaky patches on her beautiful daughter’s face and recommended an over-the-counter topical lotion for the dryness and itching. For years, the chronic skin irritation was a reminder to Vanderbilt that another harsh Alaska winter was on its way. Although the condition never got worse, she says, over time, what started as a winter reoccurrence became a yearround frustration, with the chronic condition showing up at varying times and in different spots including her neck and back. When she moved to Anchorage, where winters are colder and dryer than in Seward, Vanderbilt’s condition worsened. She quit mentioning it at doctor appointments because her condition never changed. “It’s not that big of a deal,” Vanderbilt has been told over the years. Changing seasons and the environment could be contributing to the condition, dust and increased pollen levels are often an irritant, it could also be hereditary—these are some of the explanations she has been offered by nurses and physicians over the years. Now twenty-eight, she subscribes to one of the most common explanations: “And it doesn’t help that you live in Alaska.” In the meantime, Vanderbilt continues to try a different assortment of soaps and drugstore hydrating and anti-itch creams for flair ups, doing what she can to drink water and eat more fruits and vegetables to counteract her condition.

From the Inside Out About 82 million Americans experience some form of dry, itchy, or scaly skin during the winter months. Of these, almost half are affected by eczema, also known as atopic der-

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Healthcare

matitis, which is one of several common, inflammatory skin conditions that the Alaska medical community sees regularly. While cold, dry weather conditions such as those that exist in Alaska can irritate the skin and contribute to chronic skin con-

“Skin is like the tip of an iceberg—putting lotion on is just holding the symptoms down, but under the water is something bigger that you’re not seeing. Symptoms should be seen as an opportunity to identify chronic conditions underneath that, once treated, can change life for the better. It is easy to get in the habit of using topical treatments, not realizing we are hiding clues to improve our health and core diet, because it temporarily gives us relief.”

—Robert Torrey Smith Naturopathic Doctor

ditions, the healthcare community barely mentions topical creams when it comes to recommended treatments. Instead, providers agree, prevention and treatment begin from within; whatever is going on externally mirrors what’s going on in the body internally. “Skin is like the tip of an iceberg—putting lotion on is just holding the symptoms down, but under the water is something bigger that you’re not seeing,” says Robert Torrey Smith, an Anchorage naturopathic doctor. “Symptoms should be seen as an opportunity to identify chronic conditions underneath that, once treated, can change life for the better. It is easy to get in the habit of using topical treatments, not realizing we are hiding clues to improve our health and core diet, because it temporarily gives us relief.” As a naturopathic doctor, Smith treats a wide variety of medical problems using natural means, including skin problems such as eczema, aging skin, acne, scarring, and nonhealing skin ulcers. He also treats those that are often a result of the Alaska environment

Alaska Business | December 2017 www.akbizmag.com

Nutrition or Bust Although Alaska weather tends to get the blame for residents’ chronic skin conditions, there are other causes that can only be treated through appropriate diagnosis. For example, Smith says, low thyroid function can be a cause of dry skin. Physical and emotional stress can be a source of cracked finger tips and slowhealing extremities as the body shuttles blood to the core of the body to protect the heart and vital organs. Skin conditions are often the first sign that a person has diabetes, which causes many skin problems that resemble less serious conditions but when left undiagnosed and untreated can be very serious. Experts on caring for and repairing skin conditions, regardless of the climate and environment, will likely have different approaches to treating the same problem; however, healthcare disciplines agree on one core principle when it comes to prevention. “Healthy skin, no matter the climate in which one lives, is dependent on nutrition,” regardless of external and internal factors, says Joanna Bryant, a registered, licensed dietitian for the Alaska Regional Hospital Health Management Center. What is the proper diet for maintaining well-nourished, attractive skin? While Bryant recognizes that the discussion can be complicated, she recommends a diet that includes whole grains, fruits, vegetables, beans, yogurt, nuts, olive oil, and fish and seafood. Eating a wide variety of fruits, vegetables, proteins, and fats like these—all rich in antioxidants, omega-3 fatty acids, beta-carotene, www.akbizmag.com

and vitamins A, C, and E—are proven to protect the skin against free radicals that may lessen the inflammatory response in the skin, damage skin cells, and cause signs of aging, as well as advance the progression of cancer, cardiovascular, and age-related diseases. Combined with adequate sleep, exercise, sunscreen use, and dietary changes, at any age, skin surface, texture, color, and overall health may be noticeably improved. “You’re just getting old, get used to it and deal with it—this is not a phrase I use,” Smith says of his commitment to helping Alaskans of all ages improve or reverse skin vulnerabilities. “If you are compliant with a regenerative-based treatment plan, you can improve your skin and health at any age.” R

Joanna Bryant Registered/ Licensed Dietitian, Alaska Regional Hospital Health Management Center Photo by Kelly Ott

Heidi Bohi is a freelance writer who has written stories about Alaska since 1988.

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December 2017 | Alaska Business

HEALTHCARE SPECIAL SECTION | SKIN CONDITIONS

such as dry skin, rashes, insect bites, and sunburn. Certain plants, such as cow parsnip or Pushki (poosh-kee) stalks, similar to poison ivy and poison oak, often result in large blisters, redness or darkened pigmentation, and increased susceptibility to exposure. To prevent sunburn, Smith increases patients’ vitamin D levels before exposure by prescribing consumption of certain foods including blueberries and raspberries. High levels of ellagic acid and supplements that contain astaxanthin pigment—the same plankton that sockeye salmon eat—may also help protect the skin from sun damage and rashes. Treatment of skin problems depends on the diagnosis and cause, though increasing hydration is one of Smith’s first recommendations. The skin contains almost two-thirds water, so preventing dehydration by drinking water is critical. From there, rather than prescribing drugs immediately, he develops a treatment plan that identifies the condition’s cause and helps the body repair faster by using the right combination of nutrients and herbs to support the healing process. Formulas that help the kidneys regulate fluid balance and bolster the adrenals are good for the skin conditions for which Alaskans commonly seek treatment, and this is especially true for the older population. “As we age, it weakens our ability to ‘hang onto essence,’ which often means we sweat easier and urinate more frequently, resulting in chronic dehydration and exhaustion.” All of these factors contribute to unhealthy skin, especially in an Arctic climate like Alaska’s.

SPECIAL SECTION

Building Alaska

AGC of Alaska Honors 2017 Award Winners at Annual Convention Winners include congressman, contractors, engineers, and construction projects By Kathryn Mackenzie

he Associated General Contractors (AGC) of Alaska is the state’s largest construction trade association representing more than 650 general and specialty contractors, suppliers, manufacturers, and businesses participating in one of Alaska’s largest economic sectors. The organization honored the individuals, construction contractors, projects, and safety programs that help make this industry one of the most important in the state. The following awards were given out at AGC’s annual convention in November.

Hard Hat Award  Congressman Don Young is AGC of Alaska’s 2017 Hard Hat Award winner. Now known as “Hard Hat Don,” Young is the Dean of the House Republicans and second longest serving member of the US House of Representatives, according to AGC. “Young proudly serves as the ‘Congressman for All Alaska,’ and after nearly forty-five years in office his vision remains ‘to provide citizens with the opportunity for a better life, not just for today, but the future.’” Stan Smith Volunteer of the Year  Xavier Schlee, Alaska Basic Industries Parker, Smith & Feek Excellence in Construction Awards: Meeting the Challenge of a Job Under $3 million—Vertical Construction  Roger Hickel Contracting—Asplund WWTF Screens Rehabilitation and Hot Water Upgrades The scope of the project consisted of upgrades to Anchorage’s Asplund Sewage Treatment Plant and work involved removing and refurbishing the existing influent screens, relining the influent channels, and process upgrades to modernize the plant and make it more energy efficient. This project was particularly complex due to the need to maintain the plant in operation at all times. Between $3 million and $8 million—Vertical Construction  Cornerstone General Contractors—Alaska Airlines Kodiak Airport Upgrades Cornerstone completed a major renewal of Alaska Airlines’ Kodiak Airport Terminal, 36

a 12,500-square-foot facility and the first of nineteen stations to be upgraded through the airline’s Alaska Facilities Reinvestment program. Work included demolition, systems upgrades, and reconfiguration of interior and spaces (ticketing; TSA passenger and baggage screening; restrooms; lobby; and administrative offices) and exterior improvements. Over $8 million—Vertical Construction  Davis Constructors & Engineers—Anchorage Museum Expansion The Anchorage Museum is the cultural cornerstone of Anchorage providing the foundation of Alaska’s cultural heritage, community identity, education, and outreach. This expansion project provided 30,000 square feet of gallery space, temporary gallery space, a patron’s lounge, administrative offices, informal galleries, and a remodeled atrium. It also included a stunning addition to the second floor. Under $3 million—Transportation, Marine, Heavy, Earthmoving  Turnagain Marine Construction—Kodiak Channel Transient Float Of all the bidders for this project, Turnagain Marine Construction was the only company to submit a design-build proposal unconditionally waiving any claim for geotechnical impacts, relying on its experience installing deep marine foundations and its unique fleet of crane barges custom-built for Alaska conditions. Turnagain finished a week before schedule. Between $3 million and $8 million— Transportation, Marine, Heavy, Earthmoving  Tutka LLC—Roche Moutonnee Creek Bridge # 1519 Replacement - Dalton Highway MP 265 Tutka completed replacement of the Roche Moutonnee Creek Bridge at MP 265 of the Dalton Highway in September 2017, reaching substantial completion within the brief summer window afforded by Alaska’s northern latitudes. Tutka met the challenges of remote location work and completed the final 120-foot long concrete bulb-tee girder bridge including onsite mixing of concrete for the substructure through careful planning and effective use of nearby resources. Over $8 million—Transportation, Marine, Heavy, Earthmoving  QAP—Spenard Road Reconstruction Phase II Spenard Road Reconstruction Phase II–Hillcrest Drive to Benson Boulevard consists of complete reconstruction of Spenard Road, extensive site improvements, storm and sewer manhole replacements, installing new storm drain piping, lining existing storm drain with Cured in Place Pipe, installing a new LED illumination system, installation of nine transit stops, eight-foot sidewalks and curb ramps to meet Americans

with Disabilities Act criteria, traffic signalization at three major intersections (Benson Boulevard, Northern Lights Boulevard, and Fireweed), and construction of a Municipal Light and Power vault and duct system.

Excellence in Construction Award for a Specialty Contractor—Vertical Construction  KLEBS Mechanical Inc.—Riverview at the Bluffs (Design/Build) KLEBS Mechanical served as mechanical subcontractor for Riverview at The Bluffs, a four-building, sixty-nine room lodge situated on the lower slopes of Sugarloaf Mountain in Denali. This $10 million design/build development featured $1 million in mechanical work. During the design phase, KLEBS proposed an alternative central hot water plant for the complex located in a single mechanical space that provides hot water above the design requirements and reduces energy usage and fuel costs by 52 percent compared to the original design. KLEBS’ innovative approach reduced up-front project costs and long-term operation and maintenance costs. Award for a Specialty Contractor— Transportation, Marine, Heavy, Earthmoving  STG Inc.—GCI TERRA Ring Closure The Terrestrial for Every Rural Region in Alaska (TERRA) project is GCI’s vision to bring a next-generation communications network to some of the most remote stretches of land in Alaska. STG helped make this vision reality for more than 45,000 Alaskans with 3,300 miles of fiber-optic network. Seven years in the making, the TERRA infrastructure now provides eightyfour villages access to high-speed terrestrial broadband service through one of the largest fiber-microwave networks in the country.

Sustainability in Construction Award  Orion Marine Group—UniSea Seafood Waste Dredging Orion Marine joined the Floyd Snider and UniSea team to finalize a waste remediation plan and perform dredging work to remove contaminated seafood waste in Dutch Harbor. Orion worked with Floyd Snider to develop work plans, schedules, and drawings for seawater filtration on the dump scow to complete reporting to the EPA. ConocoPhillips Excellence in Safety Awards Building Division  Cornerstone General Contractors Inc. Safety culture begins with leadership and Cornerstone’s President Joe Jolley and Vice President Mike Quirk have committed the firm to the philosophy that safety comes above all

Alaska Business | December 2017 www.akbizmag.com

BUILDING ALASKA SPECIAL SECTION | AGC AWARDS

else. Cornerstone firmly believes in its team and places the highest value on sending each and every team member home safely to their family each night. As part of the company’s top-notch safety program, the safety manager works closely with project managers, superintendents, and field staff to develop site specific safety plans during pre-construction and then oversee implementation of those safety plans during construction. The safety manager, project manager and site superintendent jointly develop traffic control plans, engineering controls, and phase the jobs to build safety into every project. Heavy Division  Kiewit Infrastructure West Co. (KIWC) KIWC is committed to providing a safe workplace for its employees. KIWC’s safety program is focused on behavior in conjunction with rules and regulations, which is why an industry-leading safety program was developed with buy-in and participation from all levels of the company. KIWC encourages and promotes many different competencies on all jobsites including authority, accountability, professionalism, and innovation. These competencies are the cornerstone of the KIWC safety program and contribute to the company’s overall goal of “Nobody gets hurt.” Specialty Division  American Marine Corporation (AMC) Despite extreme hazards, high-risks, and logistical challenges faced on a routine basis, AMC constantly strives for operational and safety performance excellence, and for more than fifteen years has not experienced an injury, dive-related emergency, or occupational illness during a diving operation. Since 2008, AMC has a perfect safety record with no OSHA reportable or recordable incidents and no occupation illnesses or injuries. AMC is well on its way to achieving another perfect year in 2017 with no occupational illnesses or injuries to date. Highway Division  Brice Inc. While safety continues to be a prominent issue in the construction industry, Brice strives to be proactive with its Safety Program and not just be content with mere regulatory compliance. This philosophy begins at the corporate level with both upper and project management teams fully supporting funding and implementation of new and existing safety programs. This up and down management thinking affords Brice’s employees the safest working conditions. Individual  Tom Ulrich, AMC Ulrich ushered AMC’s personnel into a safety culture unparalleled in the organization’s history by working to improve systems and processes as well as provide training opportunities for all employees. Ulrich’s top down approach is a shining example for all team members to emulate, as is his open-door policy which helps generate conversation and dialogue to breed new, innovative ideas from front-line team members and administrative staff. R www.akbizmag.com

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Building Alaska

Mat-Su Valley Expansion Projects Show Valley is ‘Open for Business’ New builds, remodels, infrastructure modernizations help meet growing demand

By Tom Anderson

he Matanuska-Susitna Borough is the second most populated region in Alaska with 104,365 residents based on July 2016 US Census data. The same data numbers indicate a sizable population growth of more than 17 percent between 2010 and 2016. There’s no slowing in sight for 2018 as new homes and commercial projects abound with expansion both in the Borough’s three cities of Palmer, Wasilla, and Houston and in outlying unincorporated communities that comprise the Borough’s 25,258 square miles of land. John Moosey, Mat-Su Borough manager, is eager to see new and continuing projects successfully completed in 2018. Under his watch since May 2011, a variety of commercial and residential projects have been built to accommodate the area’s growing population. “Mat-Su Borough’s capital projects will be slightly over $51 million-worth of planned or ongoing construction projects for 2018/2019,” says Moosey. He adds that the three largest projects are Fire Station 7-3 ($10.2 million), Fire Station 6-2 ($12.5 million), and swimming pool upgrades ($12.83 million). “The break out totals $44.6 million in vertical construction and $6.55 million in horizontal construction,” he says. When complete, Fire Station 7-3 will be a 39,000-square-foot facility in the West Lakes Fire Service Area. The project replaces the existing station and adds space for both administration and fleet maintenance. The new station will also feature 24/7 staff which means area residents can expect to see faster response times. The Fire Station 6-3 Central design plan 38

calls for a 38,000-square-foot facility at the intersection of Knik Goose Bay Road and Vine Road. The new station replaces the old station in the same location. That station will be converted into the Mat-Su Training Center. Moosey says the 6-3 projects are comprehensive, including building a 200,000 gallon water storage tank, burn tower, residential quarters, training areas, apparatus bays, warehouse, and administrative space. Design of the 6-2 Fire Station was at 35 percent in late October, and in November the project advertised for a construction manager/general contractor to participate in completing the design and construction, which is anticipated to begin in spring 2018 and will take approximately one year to complete. The Palmer High School and Wasilla High School swimming pool improvements, slated for 2018, will offer educational and recreational benefits to students and their families. Palmer will receive upgraded locker rooms with a new vestibule addition and renovations to the pool to allow for lap swimming and competition space. In Wasilla, the pool will be upgraded to a six-lane competition pool. There will also be a 1,600-squarefoot recreation pool added for family and community use. Both male and female locker rooms will be renovated.

Palmer’s Economic Growth Steadily Increasing Nestled in an agricultural haven of verdant pastures, sprinkled with new and old farms and the iconic Alaska State Fairgrounds, the

City of Palmer is only forty-two miles north of Anchorage. Surrounded by the Talkeetna Mountains and Chugach Range, the city has grown to more than 6,000 residents dispersed over roughly five square miles. As the population increases, so have commerce and infrastructure projects. “The Mat-Su Borough’s population and construction are clearly increasing,” says Nate Wallace, Palmer’s City Manager. “As a result, transportation and commercial expansion have to concurrently keep up with the growth in the Valley, and we’re definitely seeing this in Palmer.” Both Wallace and Palmer Mayor Edna DeVries say primary projects for 2018 involve wastewater treatment, air travel, and highway transportation. “The Palmer Wastewater Treatment Plant upgrades were started in 2017 and should be completed in the summer of 2018,” says Wallace. The project cost is $12 million, funded by grants and loans from the US Department of Agriculture, the State of Alaska, and through utility fees. The project was initiated to maintain compliance with Environmental Protection Agency regulations because treated water is discharged into the Matanuska River. The primary contractor is Roger Hickel Contracting and the engineering firm in charge of design and construction is HDR. Another project started in 2017 that will be complete in the spring of 2018 is repaving the Palmer Municipal Airport’s Runway 16-34, the largest landing strip at the airport. The project is nearly complete; the final stage of

Alaska Business | December 2017 www.akbizmag.com

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December 2017 | Alaska Business

BUILDING ALASKA SPECIAL SECTION | VALLEY PROJECTS

Mat-Suâ&#x20AC;&#x2122;s newest gaming option is Big Valley Bingo.

BUILDING ALASKA SPECIAL SECTION | VALLEY PROJECTS

Big Valley Bingo is betting on Mat-Su patronage in 2018. Photo by Tom Anderson

resurfacing will take place in early 2018 after the snow and ice melt. The $7 million project, funded by a grant from the Federal Aviation Administration, also entails a safety component including tree removal and berms along its periphery and borders. Pruhs Construction Company is the primary contractor, and HDL Engineering Consultants is overseeing the design elements. Wallace says another anticipated 2018 project is the long-awaited Glenn Highway expansion which goes to bid in early 2018 and is scheduled to begin construction this

spring. The first phase of the project is widening the highway to four lanes from the intersection of Palmer’s Bogard Road and the Glenn Highway to just beyond the Alaska State Fairgrounds and includes the addition of frontage roads near the Fairgrounds and a bike lane from Kepler Lakes into Palmer. The second phase will extend the four-lane highway expansion from the Fairgrounds to the Glenn-Parks Highway interchange. “We’ve seen older commercial buildings being remodeled across the city from late 2017 into 2018, as well as the potential for the

old Fred Meyer building to be sold or leased,” says Wallace. “The City of Palmer is demonstrating that it’s open for business through our new built, remodeling, and infrastructure modernization, and this will continue in 2018.” From the Greater Palmer Chamber of Commerce perspective, construction growth in 2018 and beyond is imminent. “I foresee continued responsible development in and around the Greater Palmer area,” says Executive Director Ralph Renzi. “Palmer has always been known as a ‘walking community.’ That is what makes our city so unique. Ease of pedestrian access continues to be a focal point of future projects including new and improved pathways, accessible sidewalks, and improved signage and street markings.” Renzi says the Board of Economic Development is developing a walking map of the city. “Our brick and mortar businesses will continue to benefit from the continued improvements. Due to the tireless work of our Parks, Recreation, and Cultural Resources Advisory Board, residents can look forward to improvements in our parks and playgrounds so families will have a variety of unique places to enjoy their time together.”

Wasilla: A Hub for Investment and Opportunity “In spite of a downturn in Alaska’s overall economy, the Mat-Su Valley has been able to remain, for the most part, pretty stable,” says Ina Mueller, executive director of The Great-

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Existing Fire Station 6-2.

er Wasilla Chamber of Commerce. “Business licenses and building permits continue to increase and our medical and assisted living related businesses continue to grow,” she adds. New residential and apartment complex construction as well as the continuing phases of work at Mat-Su Regional Hospital are all expected to continue in 2018. In 2017, the addition of new restaurants Ginger Basil and Smash Burger along with the newly-remodeled Mat-Su Resort added additional dining options to the community, Mueller says. Three Bears Alaska and Valley Bingo also completed developments in 2017 and Mueller is encouraged that 2018 will be just as successful with the right research and investment. “Several developers have been investigating options for building another hotel in the Wasilla area as our tourism numbers continue to increase, and improvements con-

Houston is ‘Open for Business’ The City of Houston has approximately 2,035 residents, says Mayor Virgie Thompson. In 2017 the city added an addition for its residents when Three Bears Alaska opened downtown complete with a full-service gas station, growler bar, and convenience store. Thompson is hopeful the same level of building momentum occurs during the next year to make shopping more convenient for area residents and visitors and to add employment opportunities to the area. Thompson says in 2018 the State Department of Transportation will begin work on Phase 3 of the Parks Highway lane expansion, transitioning from Meadow Lakes to an endpoint within the Houston city boundaries. “The most exciting feature of this project will be a new stop light at Big Lake Road. There have been many fatal accidents at that intersection we’d like to see an end to.” Thompson says Houston has a total of 296 business licenses, 50 percent of which are shops or offices located within city boundaries. Half of those licensed businesses also

provide services in the city. “We encourage new and expanding businesses because of a growing, engaged population that’s sure to buy products and services,” she adds. “Our message to Alaskans is that Houston is open for business and our consumer base is ready to spend money with the right business investment in 2018.”

Development Welcome in 2018 Judging from mayor and city management responses across the Mat-Su Borough, the construction and economic development in 2016 and 2017 would be a welcome trend for 2018. Whether that occurs depends on the vision and goals of businesses that value an expanding region of the state with massive land availability and attentive consumers. “The Mat-Su Borough has been very fortunate over the last five years to benefit from many state-participated construction projects,” says Moosey. “We’re eager to continue on with this heightened level of development in 2018 because robust construction meets the needs of the community members and visitors we serve while ensuring our construction industry workforce remains employed.” R

Tom Anderson is a lifelong Alaskan freelance writer for local and national publications and owns a public relations firm.

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BUILDING ALASKA SPECIAL SECTION | VALLEY PROJECTS

tinue every year at our Wasilla Airport,” says Mueller. “Confidence in the economy has also been reflected in the growth of membership in The Greater Wasilla Chamber of Commerce. In my first full year as executive director, our membership has grown by over forty-eight new members. The Mat-Su Valley is truly the place to live in Alaska, especially during today’s economy.”

SPECIAL SECTION

Building Alaska

Alaska Business Construction Round-Up

Image courtesy of R&M Consultants

Valdez New Harbor - Phase 2 Uplands substantial completion.

Stateâ&#x20AC;&#x2122;s third-largest industry stays busy with marine, transportation, facilities projects

By Heidi Bohi

onstruction is the stateâ&#x20AC;&#x2122;s third largest industry and accounts for approximately 20 percent of Alaskaâ&#x20AC;&#x2122;s economy; like many others, the industry is feeling the pain of several years of low oil prices; however, spending on federal, tourism, fishing, air cargo, and transportation projects is projected to hold steady as construction projects continue statewide. Still, the industry faces challenges of its own that it must take into consideration with every project: maintaining sustainable development, being environmentally and culturally sensitive, and, as the fiscal environment remains unstable, taking into consideration increased stakeholder engagement. Included in this construction round-up are projects ready to commence, under construction, or recently completed. 42

New Harbor Development Phase I & II Working with the City of Valdez, R&M Consultants is the design engineer of record for the $25 million, multi-phase Valdez Harbor Development project, a long-term waterfront development plan that optimizes the old and new harbor facilities to meet current and long-term development needs. Phase 1 construction was complete in 2016 and included rock removal from Hotel Hill on South Harbor Drive and offshore fill and armor stone protection to create a ten-acre uplands area including access roads, drainage, pedestrian walkways and boardwalks, high mast lighting, and utilities services. Phase 2 is under construction and includes the Upland and Inner Harbor Facilities. The work, which has been ongoing in 2017 and will continue into 2018, includes a 51,000-squarefoot, 150-slip vessel moorage float system for 40-foot to 100-foot vessels; a 90-foot by 90foot drive-down float, and 117-foot by 17-foot transfer bridge; and upland facilities, including a harbor maintenance building with office space, restrooms, and laundry facilities. Other upland improvements include a restroom building, a bilge water treatment facility, pic-

nic areas, pedestrian amenities, and landscaping features. Pacific Pile and Marine is the general contractor for this phase of the New Harbor Development project.

Seward Marine Industrial Center Harbor Improvements R&M Consultants is the design engineer for harbor improvements associated with the Seward Marine Industrial Center. Phase 1 includes a 1,000-foot breakwater, turning dolphin, channel dredging, shoreline erosion protection, and sewer and seafood outfall relocations. Phase 2 is in the design stages and includes repairs and improvements to a cellular sheet pile dock, expansion and widening of the travel lift dock, and a new heavyduty moorage float. Phase 3 includes a new pile-supported dock, berthing dolphins, and other support facilities. Hamilton Construction is the general contractor of the $16 million Seward Marine Industrial Center Harbor Improvements project. Biorka Island Dock Replacement R&M Consultants provided design and permitting for the replacement of a 1950s-era dock owned by the Federal Aviation Administration

Alaska Business | December 2017 www.akbizmag.com

Image courtesy of Davis Constructors & Engineers

The first Anchorage Barefoot Mile, which advocates and raises funds to end human trafficking, took place in May 2017, attracted 358 walkers, and raised more than $203,000.

avis Constructors & Engineers partnered earlier this year with Joy International, Priceless, MyHouse, and Covenant House for the first Anchorage Barefoot Mile fundraiser, which took place in late May. The Barefoot Mile is a one-mile barefoot walk to raise awareness of and funds to combat human trafficking, “walking in solidarity with children in poverty, who are the most vulnerable to trafficking,” the company states. “The Barefoot

Mile can remind us of how effective our community can be when we join for a common goal, which is the safety of innocent individuals.” Davis dove in to coordinating the Anchorage Barefoot Mile and accompanying events, including hosting a wine tasting and silent auction (attended by more than fifteen volunteers from First National Bank Alaska). The company reports that it recruited more than forty-eight volunteers at the Saturday walk, and the company spent more

than 500 employee hours planning, setting-up, and taking-down the event. Davis reached out to its contacts and community, and more than forty of the company’s subcontracting partners donated more than $35,000 to help the company reach its goal. In total, the first Anchorage Barefoot Mile raised more than $203,000 from 266 unique donors, drawing 358 walkers. Davis Constructors & Engineers will host the event again in May 2018. R

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BUILDING ALASKA SPECIAL SECTION | CONSTRUCTION ROUND-UP

Philanthropy in Construction: Davis Constructors & Engineers

Image courtesy of R&M Consultants

BUILDING ALASKA SPECIAL SECTION | CONSTRUCTION ROUND-UP

Seward Marine Industrial Center Harbor improvements reflect input from private and public user groups.

on Biorka Island near Sitka. The work includes conceptual planning and an alternatives analysis; wind and wave analyses; upland and bathymetric surveys; geotechnical explorations; structural, mechanical, and electrical design; and environmental permitting. Due to the remote location and lack of construction resources, the pier will be a steel pile-supported structure with precast concrete deck elements. A 250-foot by 50-foot floating dock and 80-footlong access gangway will be provided for personnel access via small craft. A fuel header, utility building, and eight ton pedestal crane will also be provided. Construction of the $981,202 project is scheduled for 2018.

Gary Paxton Industrial Multi-Purpose Dock This new multi-purpose, 250-foot floating dock and drive-down ramp will incorporate a lightly-used barge as the main docking facility, along with mooring dolphin structures and a transfer bridge to provide access to several different types of vessels in various industries including freight, fishing, bulk water, fuel, and tourism. R&M Consultants is providing civil design for the $6.8 million project and Turnagain Marine Construction is designing and constructing the dock, located at the Gary Paxton Industrial Park, for the City and Borough of Sitka. The dock is scheduled to be substantially completed in January 2018. Water Street Viaduct The Ketchikan Water Street Viaduct project is under construction and scheduled for completion in summer 2018. The $24 million, 1,000-foot hybrid bridge structure replaces the state-owned Ketchikan Water Street Viaduct, situated on a steep hillside above Tongass Avenue. R&M Consultants is the project engineer, Dawson Construction is the gener44

al contractor, and Seattle-based Shearer Design is providing all aspects of bridge design.

scheduled to begin this summer. R&M Consultants is the project engineer.

Mill, Mission, and Stedman Streets Reconstruction Pedestrian traffic is a major challenge along Ketchikan’s main pedestrian corridor due to the high volume of summer cruise ship traffic. This highly-traveled segment of the South Tongass Highway—locally known as Front, Mill, and Stedman Streets—will be reconstructed to increase the capacity of pedestrian facilities and upgrades to meet current Americans with Disabilities Act requirements. Improvements to the 3,229 feet of roadway will cost $10 million and are

Galena Campion Road Beaver Creek Culvert This 144-foot diameter steel Galena Campion Road Beaver Creek culvert crossing was damaged four years ago when the roadway was overtopped by Yukon River ice jam flooding and is scheduled to be replaced during the summer of 2018. Construction of the steel fish passage includes a 48-inch diameter overflow pipe and will simulate a stream channel with a low-flow condition, allowing fish to pass through while maintaining large hydraulic capacity. The design includes construction of prefabricated aluminum headwalls and wing walls, placement of riprap for erosion protection, and road reconstruction. Construction of the $122 million state project will be overseen by Cruz Interstate Construction. R&M Consultants is the project engineer.

Image courtesy of R&M Consultants

This new multi-purpose dock in Sitka will serve vessels in some of Alaska’s largest industries.

Cold Bay Airport Crosswind Runway Improvements Built during World War II, Cold Bay Airport serves as the Alaska Peninsula hub for the communities of Cold Bay, Sand Point, King Cove, False Pass, and Nelson Lagoon. It is known for having the state’s fifth largest runway, which underwent $3.7 million in improvements this past fall. Removing 1,000 feet of runway and adding 300 feet, shifting the crosswind runways to clear existing runway visibility zone obstructions, adding a new runway safety area and pavement markings, and repairing the runway edge are some improvements included in the Cold Bay Airport Crosswind Runway project. Knik Construction is the general contractor, and R&M Consultants is the engineer of record.

Alaska Business | December 2017 www.akbizmag.com

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BUILDING ALASKA SPECIAL SECTION | CONSTRUCTION ROUND-UP

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amily-owned Watterson Construction routinely contributes to projects in the community. Within the last year, “Watterson [Construction] and shareholders made a significant contribution to the replacement of the gym floor at the [Anchorage Community] YMCA,” says President Bill Watterson. The Anchorage Community YMCA is the only YMCA in the state, and “Despite our name, the Y is not just young people, not just for men, and not just for Christians,” the organization states. The nonprofit is committed to building community through youth development, healthy living, and social responsibility. During the University of Alaska Fairbanks Centennial Celebration, Watterson made a contribution to the University of Alaska Fairbanks Engineering Facility, a project comprised of building 119,000 gross square feet of new space and renovating about 23,000 gross square feet of existing space in the Duckering Building. Construction on this project began in September 2016 and was substantially complete in September this year, with first classes scheduled in the new facility in January 2018. Watterson Construction also donated to the Polar Bear Exhibit at the Alaska Zoo, which plans to triple the size of the exhibit, including building maternity dens. R

Yakutat Culvert and Fish Passage Maintaining open fish passage and avoiding impact to fish in the creek presented just some of the challenges that Ahtna Environmental faced while renovating a fish passage under the Yakutat Highway. Rain caused rapid surges in the creek during construction, dismantling fish fences and pumps and impacting excavation areas. To maintain road traffic safety, Ahtna built a bypass road and diverted the creek with two six-inch pumps—all while leaving one lane of traffic open. The $600,000, fast-track project was complete in August, three weeks ahead of schedule.

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Philanthropy in Construction: Watterson Construction

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Glacier Bay Lodge roof improvements were made with red cedar shake, in keeping with Alaska State Historic Preservation Office requirements.

Alaska Business | December 2017 www.akbizmag.com

The Mat-Su Health Foundation Building features sustainably-harvested wood siding, and energy-efficient mehanical systems use LED lighting throughout the facility.

Glacier Bay Lodge Seismic Upgrade and Roof Replacement The Glacier Bay Lodge Seismic Upgrade and Roof Replacement was completed for Glacier Bay National Park and Preserve by Ahtna Environmental in May. After removing the ice-damaged roof and installing seismic protection with added layers of insulation and strapping at load points, other roof buildup improvements included installing polyisocyanurate insulation board, plywood cover board, and water barrier underlayment over the cover sheathing and a new cedar shake system. Because the lodge is eligible for the National Register of Historic Places, improvements had to be made in accordance with Alaska State Historic Preservation Office requirements to maintain historic integrity of the building and restore the original appearance of the lodge with appropriate materials such as American-made red cedar shakes. Mat-Su Health Foundation Building The Mat-Su Health Foundation is constructing a $9 million, 46,000-square-foot, multitenant facility in Wasilla. In addition to housing foundation staff, the project dedicates space to programmatic uses, including the creation of a Community Resource Center Network, where Mat-Su residents can seek support, information, and referrals for local services. It will also house programs such as the Aging and Disability Resource Center, www.akbizmag.com

LINKS Mat-Su, a parent resource center, and Raising Our Children with Kindness (ROCK Mat-Su). The design requires several unique architectural features, including sustainablyharvested and low-maintenance Accoya acetylated wood siding. Interior and exterior finishes reflect the surrounding natural environment to mimic the year-round colors found in the Mat-Su Valley, and the facility is situated to maximize daylight exposure and space for public gathering areas. Mechanical systems are designed to be energy efficient and include the use of LED lighting throughout the facility. The scheduled completion date is April 2018. The Mat-Su Health Foundation Building project manager is F-E Contracting. Other contractors working on the project include Architects Alaska, RSA Engineering, and PND Engineers.

Eielson Air Force Base Projects Funded by military construction appropriations, this $44.9 million project will support the bed down of F-35A fighters by providing a 20,796-square-foot, two-bay aircraft hangar; a 4,004-square-foot propulsion maintenance facility; and a 9,128-square-foot corrosion control dispatch facility at Eielson Air Force Base, all compatible with Department of Defense, Air Force, and base design standards. The facility will be able to withstand wind loads, seismic effects, and Arctic con-

Rendering by U.S. Army Corps of Engineers - Alaska District

F-35A Aircraft Hangar, Propulsion Maintenance, Corrosion Control Dispatch Facility at Eielson Air Force Base.

ditions as prescribed in applicable codes and design guides. Construction on the Eielson Air Force Base F-35A Aircraft Hangar, Propulsion Maintenance, Corrosion Control Dispatch Facility began in Octoberâ&#x20AC;&#x201D;focusing first on earthwork and ground thawing. It is set to be complete in July 2019 and KPB Architects-Coffman Engineers JV is the project designer. It is being constructed by Bethel Federal Services.

Turnagain Elementary School Renewal The recent comprehensive addition and renovation to Turnagain Elementary School, built on a nine-acre site in 1956, increased the two-story facility to twenty-four classrooms and 56,775 square feet, which includes four portable classrooms to serve the student population. Completed in August, the $13 million project included relocating the administrative offices to improve security, upgrading site circulation and parking lots, improving December 2017 | Alaska Business

BUILDING ALASKA SPECIAL SECTION | CONSTRUCTION ROUND-UP

Images courtesy of Architects Alaska

BUILDING ALASKA SPECIAL SECTION | CONSTRUCTION ROUND-UP

Philanthropy in Construction: Arcadis

Gage Hoffman stands in front of the Dr. Paul John Calricaraq project’s new clinic construction site.

rcadis is an engineering design and consultancy company. In the summer of 2017 the company created a summer student internship to support the $300 million-plus Dr. Paul John Calricaraq project in Bethel, which comprises renovating an existing 105,000-square-foot hospital as well as construction of a new 175,000-square-foot clinic. Additionally a fifty-four unit apartment building will be built on the twenty-three acre site in Bethel for employee housing. Arcadis is serving as the project’s manager. Gage Hoffman was selected for the internship program; he was born and raised in Bethel and is now a sophomore at Stanford University. For the internship, Hoffman completed a detailed inventory of Yukon-Kuskokwim Health Corporation’s art collection and supported the Call for Photography. The company says, “The cost of the internship program was donated by Arcadis to provide an opportunity for a local student to enhance classroom learning with valuable on-the-job skills.” R

Image courtesy of Davis Constructors & Engineers

A ribbon cutting ceremony was held to rededicate their newly remodeled school. (From left to right) Davis Superintendent Shawn Cleary, Superintendent of ASD Dr. Deena Bishop, and Davis Project Manager Andy King.

the playground, replacing worn exterior doors and windows, seismic retrofitting, library renovations, and improvements to the thermal performance of the exterior walls. Nvision Architecture developed a Project Analysis Report providing details and options for the comprehensive renewal project and Davis Constructors & Engineers is the project contractor. DanbyWembley truck trial. Image courtesy of R&M Consultants

Image courtesy of Yukon-Kuskokwim Health Corporation

Dr. Paul John Calricaraq Project: Yukon-Kuskokwim Health Corporation Hospital One of the largest projects in Alaska this year, the 185,000-square-foot, $300-plus million Dr. Paul John Calricaraq Project, named after the late visionary Elder Dr. Paul John, a Yup’ik Elder and cultural mentor, includes a new clinic and renovation of the Yukon-Kuskokwim Health Corporation Hospital in Bethel. Structural steel erection began in early summer. Exterior walls and the roof are complete and the building was fully enclosed by the end of November. Interior renovations of the existing hospital are scheduled to begin in May 2018 and continue on as occupancy levels and staff relocations permit. The first and third floors will be finished in July 2019, with the second floor following a few months later in November 2019. Final completion of the last phase is scheduled for February 2021. The general contractor for the Dr. Paul John Calricaraq Project: Yukon-Kuskokwim Health Corporation Hospital is ASKW-Davis, a team comprised of Davis Constructors & Engineers and ASRC SWK Eskimos, an Arctic Slope Regional Corporation subsidiary. The

Image courtesy of Davis Constructors & Engineers

The Yukon-Kuskokwim Health Corporation Hospital in Bethel reflects Yup’ik, Cup’ik, and Athabascan cultures.

project team includes the architectural firms Bettisworth North, ZGF, and Jones & Jones, which worked with the YKHC group and area residents to develop a cultural design for the project that embodies the area’s Alaska Native culture and values.

Aleknagik Wood River Bridge Phase III—Paving This $5.4 million project will complete construction of the road from Dillingham-Aleknagik Road to Peter Krause Sr. Drive in the Village of Aleknagik. Knik Construction Company will pave the new two-lane road, which is scheduled to be complete by fall 2018. The engineering firm of record is R&M Consultants. Dillingham Runway Rehabilitation This asphalt pavement surface rehabilitation project is under construction and will improve 6,400 feet of runway at the Dillingham Airport. QAP is the general contractor and R&M Consultants is providing engineering design services. The Dillingham Runway Rehabilitation project is scheduled for completion in the fall of 2018. R Heidi Bohi is a freelance writer who has written about Alaska since 1988.

Alaska Business | December 2017 www.akbizmag.com

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ENGINEERING

Engineers Imagine Alaska: Year-Round Road Accessibility & Sustainable Energy Engineering wish lists offer solutions to Alaska’s transportation, energy, public health challenges By Judy Mottl

magine being an engineer. Now imagine being an engineer with an unlimited budget and the ability to fulfill even the wild-

est engineering dream. What projects top the wish lists of Alaska’s engineering community? From sustainability and accessibility to advancing Alaska’s potential through public health improvements, Alaskan engineers offer insight into their dream projects. As one might expect, these projects tend to focus on improvements designed to make everyday living in Alaska even better through upgrades to the transportation and public health systems as well as increased sustainable energy options.

More Roads and Less Ice Doug Kenley’s “magic wand” engineering project is roads “to provide better access to all

of Alaska.” Kenley’s dream project increases access statewide, ultimately driving industry development. “More roads would spur a host of economic benefits for other industries,” says Kenley, vice president and principal of PND Engineers. The main hurdles to expanding Alaska’s road system, he says, are permitting rules. Kenley’s vision is shared by Terry Bailey, senior vice president and regional director with CH2M, and Matt Lund, an electrical engineer with CRW Engineering Group. “One of the most important things to consider when thinking about engineering in Alaska is transportation,” says Lund. “The

Alaska Business | December 2017 www.akbizmag.com

“Alaska does not receive very many hours of sunlight in the winter months when the highway heating is needed, so some kind of energy storage would need to be designed to capture the sunlight in the summer time and store that energy until winter. Heated highways may or may not be the most practical solution to icy roadways, but it is something that should be researched and looked into more thoroughly.”

—Matt Lund Electrical Engineer, CRW Engineering Group

Leader In All We Do rn

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cost and time of transporting people and freight safely is always a huge factor in any Alaskan design since many villages are very remote and hard to access.” He notes safety is always the first priority for an engineer, and one aspect of working in Alaska that constantly challenges safety is icy road conditions on state highways. “There are many vehicle accidents on Alaskan highways each year due to ice and snow, and road salt and sand just aren’t cutting it in some areas,” Lund says. Roadways and infrastructure are a focus for Bailey because Alaska is still a relatively young state in terms of infrastructure development. “Connecting more of the state via upgraded and new roads and airports with advanced technology would allow easier access overall,” says Bailey, who goes on to say many remote areas still have basic unmet needs, www.akbizmag.com

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The community watering point in Wales in September 2017. The water is diverted from a creek near this location. There is no treatment of the water before residents fill containers to haul water to their homes.

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December 2017 | Alaska Business

Image courtesy of CRW Engineering

Tracy McKeon’s double-award winning design for a heat recovery loop in Quinhagak.

such as potable water and sustainable wastewater systems, and those needs could more easily be met with new or better transportation access. “We have the needed energy resources that can help make this happen, we just need to tap those resources to benefit the state residents that make Alaska the great place to live that it is. In fact, affordable, reliable, and sustainable energy can make many other important infrastructure improvement projects possible,” says Bailey, comparing infrastructure to the foundation of a home. “If you design the foundation to support the house you plan to build along with any future expansions to the house you may need, you have a good starting point,” he says, continuing that, as with a house, a weak foundation will not meet the original design intent and will eventually have to be rebuilt to avoid decay. Bailey agrees with Kenley’s viewpoint that permitting is big challenge and adds that funding and a lack of technology are obstacles as well. “Not only the funding from an initial capital investment standpoint but also the ongoing sustaining costs of maintenance and periodic renewal,” says Bailey. “Again, using a house analogy, once the house is built and paid for, you still need to paint the exterior periodically, replace aging appliances, and repair leaks in the roof and such to ensure and extend its performance lifetime.” If Lund had a limitless budget to design new infrastructure, he would like to investi52

gate the potential of heating highways with glycol loops installed under the pavement. “This would keep the roads clear of ice and make them much safer, but this has some very obvious downsides including energy and maintenance costs,” says Lund, acknowledging it would be “a great engineering challenge” to keep the glycol heated over long stretches of road. That’s why he’s also interested in smart highway/solar road technology as a potential solution. Such technologies use photovoltaic pavement, which has solar panels. The solution could eliminate energy costs and reduce some maintenance costs. It would also support another of his wish list items—installing electric vehicle charging stations throughout Alaska. But again, every new technology comes with its own specific challenges. “Alaska does not receive very many hours of sunlight in the winter months when the highway heating is needed,” Lund says, “so some kind of energy storage would need to be designed to capture the sunlight in the summer time and store that energy until winter. Heated highways may or may not be the most practical solution to icy roadways, but it is something that should be researched and looked into more thoroughly.”

Cheap Energy a Critical ‘Puzzle Piece’ to State’s Success Energy—from cost-effective resources to a statewide electrical grid—lands at the top of engineering design wish lists for engineers

Danny Rauchenstein and Tony SlatonBarker. Rauchenstein, a principal/facilities group leader at PDC Engineers, would develop a cheap energy option for the entire state because he believes it’s the last remaining “puzzle piece” to build a successful future for Alaskans. Potential designs, he says, could range from a state-spanning gas line to a large North Slope power plant with a high voltage direct current line running down through the center of Alaska. “Other more sustainable options would be great as well, such as wind farms similar to Fire Island or exploring the geothermal potential of Mount Spurr, but these projects are often very localized without a statewide benefit,” says Rauchenstein. The need is significant because cheap energy benefits the state in a multitude of ways and reduces financial burdens for every Alaskan. “It would reduce urban migration, greatly reducing the cultural and intellectual drain happening in rural Alaska,” Rauchenstein says. “Cheap energy would also attract industries to Alaska that could take advantage of our technical knowledge, our geographic location, and our potentially beneficial climate [Alaska’s cold temperatures are a boon for technology or industry that requires cooling].” The big challenge, he believes, lies within the politics of undertaking such a project. “Whether [through] third-party investors or tapping into the Alaska Permanent Fund, we have the financial capital available to accomplish such a project, we just need the political will to move it forward for the benefit of Alaskans.” While politics is the big hurdle for Rauchenstein’s wish list quest, financing is the top obstacle for SlatonBarker’s design dream. The principal engineer for energy and sustainability at Coffman Engineers, SlatonBarker tops his wish list with a statewide Alaska electrical grid. He says his ideal grid would run north from the existing end of the Railbelt grid near Fairbanks, west across North Slope, south along the West Coast to loop back to the west side of Cook Inlet, and then along the Southern Coast, looping back into the Railbelt. “Then all the individual locations with renewable energy options could tie into this grid and sell power throughout the state,” says SlatonBarker, noting the grid could be comprised of hydro, wind, geothermal, and tidal energy. “Currently Iceland is almost all on a single power grid system with some very large remote power facilities powering the majority of the country,” he says. SlatonBarker explains a base load option from the North Slope-powered natural gas could provide stability and maintain the grid when renewables can’t provide enough power. “This [grid] would allow economic development in remote regions,” SlatonBarker adds, and provide more reliable and cheaper power: a direct benefit to residents. “Expensive power limits security of people, increases costs to access areas, and raises costs for remote businesses and private basic

Alaska Business | December 2017 www.akbizmag.com

needs,” he says. “If we can lower power costs around the state, many more opportunities for economic development would open up and poverty could be reduced as well.” He says it’s a technically viable option given there are similar power plants and power girds already located on the North Slope. “It is just extending them and connecting the power system up. All the individual village power systems have microgrids, so if the main line went down all the towns would still have basic power with full backup,” he says.

Reduce Carbon Footprint, Improve Public Health System Alaska’s carbon footprint and improved sewer service top two other engineers’ design wish lists. Civil Engineer Rebecca Venot of CRW Engineering Group would focus on projects providing homes with potable water and sewer service to Alaska communities. As many as 20 percent of rural homes don’t have in-home piped water and rely on honey bucket toilet systems. “Many more rely on hauling water from a community watering point, which may utilize aged or outdated infrastructure that provides water that does not meet current drinking water regulations,” says Venot, adding that lack of available water reduces the ability of households to meet basic hygiene needs including hand washing, waste disposal, and laundry. This project tops her wish list because she views public health as vital to the development of any community. “If kids can’t go to school because they are sick from a waterborne illness, they miss out on education and opportunities. Adults who are ill are unable to work or participate in subsistence activities, negatively impacting the wellbeing of the whole household. Research shows in-home water and a sewer system reduces instances of disease by up to 40 percent,” she says, citing an Alaska Native Tribal Health Consortium study published in February 2016. But there are more than a few challenges to her ideal design projects she concedes, and most are tied to economic drivers. Many communities lack residents with the skills and knowledge needed to operate advanced water treatment or robust sewage systems, and attaining such skills requires training and education. On top of that, such jobs don’t pay all that well, Venot says. On the technical side, the availability and cost of energy also factor into the equation since heating the water for these systems is critical for reliable operation. Another major hurdle is the uncertain future of climate change, she says. “Many communities are in areas with increasing flooding and erosion and are likely to be inundated with sea level rise. Furthermore, there are changes in water quality that impact the treatment system design and operation… Costly engineered solutions to mitigate the risk of change, relocating an entire community, or doing nothing and providing disaster relief when there is a catastrophe, has an extraordinary cost,” says Venot. Tracy McKeon, senior mechanical engineer www.akbizmag.com

at CRW, says the top of her wish list would focus on designing a net zero community home or building that is cost effective to build and ship. “It would include a self-sustaining means of producing electricity and heat,” she says, and the design would be “diverse adaptable” in that it could utilize community energy resources whether wind, solar, geothermal, or biomass. Such a quest, McKeon says, is tied to the reasons she chose the engineering field. “My driving passion when I became an engineer was to help others. Large impacts can be seen from reducing dependency on fossil fuels that have to be delivered at large expenses to the community whether by air travel or barge,” she says.

“The means and technology to create the homes and buildings exists, but the training and infrastructure need to be created to allow the technicians and owners to maintain the technology and equipment,” she explains. “These systems would help reduce a community’s carbon footprint and provide energy security to address the rapidly changing climate in Alaska. Reduced carbon emissions would reduce environmental impacts and improve health in all communities.” R

Judy Mottl writes about important issues country-wide with an affinity for Alaska.

December 2017 | Alaska Business

SMALL BUSINESS

SBA Administrator: Small Businesses Form ‘Backbone’ of Alaska’s Communities

Photo by Tasha Anderson

During her visit to Alaska on her nationwide Ignite Tour, SBA Administrator Linda McMahon visited several small businesses in Alaska including Wild Scoops, owned by Elissa Brown and Chris Pike.

Organization provides tools entrepreneurs need to grow small businesses

By Tasha Anderson

ne of Anchorage’s newest restaurants opened in late July at 1450 East Tudor Road: locally-owned Bread and Brew is a “modern day sandwich shop that specializes 54

in grilled cheese,” the company states. Bread and Brew Managing Partner Craig McCarty says, “We’ve been a family of business owners and entrepreneurs for more than thirty years.” Bread and Brew operates a rather unique business model. During the day the restaurant opens a garage door and lunch customers stand in line to place an order with the option of dining in or carrying out. “People are in a hurry for lunch; they want to get in and get out. We call it ‘the queue.’” But, at 4 p.m. the queue closes, and the ordering lane becomes a dinner service server station. “At night it slows down, we dim the lights, the

music turns up a little more, our servers come out, and it’s a nice dining experience,” he says. McCarty is unaware of any other Alaska restaurants with a similar practice. He says the decision to switch dining modes came after studying the market. “We are new to the restaurant business, so when we decided to get in we observed and did a case study on how restaurants function and who is successful.” Their research indicated that many restaurants found success providing lunch to a line of customers, rather than serving them. “We thought we could service more guests

Alaska Business | December 2017 www.akbizmag.com

“We just wanted to create a nice product for the locals and support other local businesses, like the brewers and growers. We’re really pleased with the results.”

—Craig McCarty, Managing Partner, Bread and Brew

by doing that,” he says. In contrast, at dinner “people are off work—they want to relax and unwind, have a beer or glass of wine, and they want someone to wait on them.” Bread and Brew caters to both sets of expectations. In addition to the change in service, menu options change after 4 p.m., with more dishes added including roasted goat or margarita flatbread, pulled pork tacos on flatbread, truffle fries, or a pretzel with cheese. Throughout the day Bread and Brew’s menu features soups and salads, imaginative grilled cheese and other sandwiches, and a selection of beer and wine. The original idea for the restaurant was a sandwich shop, and the owners anticipated their customers would appreciate local beer with their meal. What began as a plan for eight beers on tap grew to the restaurant offering more than twenty beer choices in addition to a variety of wines. The restaurant is also uncommon in its cooking methods. Bread and Brew’s stateof-the-art kitchen doesn’t have any fryers or traditional cook tops. Instead the restaurant uses panini presses for many of their sandwiches and computerized Ovention Shuttle ovens for other menu items. “All of our food, for the most part, is baked,” McCarty says. He continues that, since opening, “we’ve really created something, and people are enjoying the food and atmosphere, and we’re gaining a nice local following.” Before opening, the owners needed to renovate the location that was constructed in 2004 by locally-owned general contractor H. Watt & Scott, founded in Anchorage in 1986. “They’re a fantastic contractor,” McCarty says. Renovations on the building began in December of 2016 and were completed in late May of this year under the direction Project Manager Tim Deland. “We were so impressed when they built the building in 2004, we did not hesitate to call them again,” McCarty says.

“Without small business our economy would not be growing. Two out of three net new jobs are from small businesses. There are 29 million small businesses in our country and more than 50 percent of the population is either employed in a small business or owns a small business.”

—Linda McMahon Administrator, US SBA

www.akbizmag.com

Whether designing the menu or deciding how to renovate the building, “we just wanted to create a nice product for the locals and support other local businesses, like the brewers and growers,” McCarty explains. “We’re really pleased with the results.”

Ignite Tour Small businesses such as Bread and Brew are the building blocks of every economy

and community, without exception. During her July 2017 visit to Alaska, US Small Business Administration (SBA) Administrator Linda McMahon explained, “Without small business our economy would not be growing. Two out of three net new jobs are from small businesses. There are 29 million small businesses in our country and more than 50 percent of the population is either employed in a small business or owns a small business.”

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To join us or to learn more visit www.wtcanc.org or call 907-278-7233 December 2017 | Alaska Business

Locallyowned Bread & Brew recently opened in Anchorage on Tudor road. Image courtesy of Bread & Brew

McMahon began her service as SBA Administrator in 2017 and is relatively new to the role; however, she has a long history with business and is a seasoned business executive. She said that in her role advocating for small businesses she will use her experience growing and building businesses to make sure SBA provides the tools that are most helpful to small businesses. “[Small businesses] absolutely need access to capital,” first and foremost, she said. “You can’t start or grow without capital.” But capital isn’t everything, and she said many new small businesses owners don’t always know how to structure or market a business. To that end, SBA provides many tools to entrepreneurs and small business owners such as the Small Business Development Center (SBDC); in Alaska there are six SBDC offices in Anchorage, Fairbanks, Juneau, Ketchikan,

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Soldotna, and Wasilla. SBDC in Alaska also has three business partners that provide services to small business owners: BuyAlaska, which helps with free online marketing; the Procurement Technical Assistance Center, which provides information on how to conduct business with government; and the Technology and Research Development Center, which provides information on grant opportunities, registering trademarks, patents, and copyrights. McMahon visited Alaska as part of her Ignite Tour, a national outreach campaign to equip small businesses with tools and resources. She said, “I want to listen; I want to educate small businesses and the general public on what SBA has to offer, and I will advocate in Washington for small business—I want to drive those businesses to succeed and grow our economy.” While in Anchorage she visited several small businesses including 49th State Brewing Co., Kaladi Brothers Coffee, The Ulu Factory, Heather’s Choice meals, and Wild Scoops. “They are incredibly enthusiastic,” McMahon said of Alaska’s small business owners. “They are innovative… Entrepreneurs globally are passionate about what they’re doing because they have to be; there must be some part of entrepreneur that means risk because you are taking risks and you have to not be afraid of failure. You find that in all entrepreneurs and I certainly have found that in the folks who started their business here in Alaska, from breweries to bake shops to ice cream shops to manufacturing companies. It’s incredible to see because it’s that vitality of a small business that not only is the backbone and the engine of our economy but the backbone of our community.”

Wild Scoops While on her tour McMahon visited Wild Scoops, a purveyor of handcrafted ice cream in Alaska owned by Elissa Brown and Chris Pike. In July Wild Scoops had just finished outfitting their new test kitchen located at 636 East 15th Avenue, where the company manufactures all of their ice cream creations. Brown says it took approximately a year and a half to finish the space: “It started out as a shell and we had to bring in the equipment and freezers and everything specific to the ice cream business.” At the time Wild Scoops had been operating for approximately two years and rented kitchen space to meet their ice cream-making needs. “It’s been really exciting to get our own kitchen space and our own little scoop shop, as well,” she says, referring to the Scoop Shop in downtown Anchorage that opened this summer and served up Alaska ice cream, freshlymade waffle cones, baked Alaska toppings, and Wild Scoops’ “famous” frozen nachos. Every Thursday the test kitchen opens from 4 p.m. to 6:30 p.m. and anyone can sample whatever ice cream Wild Scoops has made up, “plus if we have any experiments we’ve been playing around with, they can sample those.” Customers can then buy ice cream by the pint. Wild Scoops started out with just Brown, and as of July she had twenty employees; she says a small business “is hard to do alone—it’s all about people to help fill in your weak spots.” Brown says Wild Scoops secured an SBA loan

Alaska Business | December 2017 www.akbizmag.com

which was incredibly helpful for the company’s growth: “That was what enabled us to purchase a lot of the equipment in the test kitchen.” She says Wild Scoops also took advantage of SBDC services provided at the University of Alaska Anchorage. “They were really helpful.” From the beginning, Brown saw the importance of building relationships and connections with other small, locally-owned businesses. In its early days Wild Scoops sold ice cream at local farmer’s markets, and Brown would peruse other stalls to see what the Alaskan vendors had to offer, ranging from beets to thyme. “As we grow, more people approach us because they know we love to collaborate; that’s something that’s always been a part of who we are. As we look down our [ingredient] list almost everything is sourced locally or uses local baked goods or beers.” She says Anchorage is an ecosystem and each small business has to figure out how it fits and how it works with other businesses in the community. “It’s finding connections and finding ways to fit into the bigger picture.” McMahon said, “Small businesses are putting people to work; they are then spending that money in their communities [and] they are being taxed, so that money goes into state and federal coffers. Small businesses are key to the growth of communities and our economy as a whole.” R Tasha Anderson is the Associate Editor for Alaska Business.

www.akbizmag.com

December 2017 | Alaska Business

SMALL BUSINESS

The Wilson Agency at Revolutions: Spinning for Health Care, the annual fundraiser for Anchorage Project Access.

Caring for More than Just the Bottom Line M

Small businesses giving back By Tracy Barbour

any small businesses are donating their time and money in manifold ways to support communities throughout Alaska. For these companies, charitable giving is essentialâ&#x20AC;&#x201D;even in challenging economic times. Altruism adds tremendous value to recipients and brings gratification to donors. Corporate philanthropy not only benefits Alaskans today but well into the future.

The following short profiles are just a few illustrations of how small enterprises are engaging in philanthropy across the state.

The Wilson Agency The Wilson Agency has been a fixture in Alaska since 1964. As part of a family of companies that includes Albers & Company and ConnectHR, it strives to provide complete

Alaska Business | December 2017 www.akbizmag.com

Images courtesy of The Wilson Agency

“It’s incumbent upon us to lift us all up. It’s important to give back to the community that gives to you so we look for ways to try to make our community a better place to live for everybody.”

—Lon Wilson President/CEO, The Wilson Agency

solutions for clients through its health, welfare, retirement, and HR advisory services. Over the last several years, The Wilson Agency worked hard to fill its service offering to focus on a suite of employment/employer services, from employee benefits to retirement plans to HR-related services, according to President and CEO Lon Wilson. “We can meet the employer’s needs—no matter what size and stage—to help them develop a recruitment retention plan,” Wilson says. The Wilson Agency’s mission is to empower people to lead a life of significance. That sums up the impetus behind its approach to philanthropy. The company supports a diversity of organizations in Anchorage, Fairbanks, Palmer, and Wasilla. For instance, it contributes time and money to healthcarerelated organizations from Covenant House Alaska to Providence Alaska Medical Center. www.akbizmag.com

The agency also donates to worthwhile causes that are important to its clients. “For example, one client supports Food Bank of Alaska, and every year they design a structure and build it, and we’ll provide a cash donation to Food Bank through that program,” Wilson says. The Wilson Agency also provides support to various projects to which its employees actively volunteer their time. In addition, it maintains a matching gift program where it will match an employee’s contribution five to one, up to $1,000. Each year, The Wilson Agency awards more than $25,000 to charities at the corporate level. Employees of the firm also volunteer through United Way’s annual Day of Caring, participate in blood drives, and other periodic charitable activities. Recently, for example, the agency stepped outside its regular giving to make a significant contribution to the capital campaign to build a new neighborhood health center in Midtown Anchorage. Under another major initiative, The Wilson Agency adopted Anchorage Project Access about three years ago. As part its 50th anniversary celebration, the company raised in excess of $50,000 for the nonprofit, which coordinates donated healthcare for low-income patients. Supporting different charities and causes is a core value for The Wilson Agency. “It’s incumbent upon us to lift us all up,” Wilson

says. “It’s important to give back to the community that gives to you so we look for ways to try to make our community a better place to live for everybody.”

The Chariot Group The Chariot Group is an audiovisual communications company that specializes in improving communication by connecting people and ideas through collaborative technology. But philanthropy is equally important to the Anchorage-based firm, which takes a multi-faceted approach to practicing benevolence. The majority of the firm’s charitable giving is done through in-kind contributions, primarily by donating the use of its conference center to outside organizations. The center is typically used as a venue for meetings by groups such as the Anchorage Economic Development Corporation, the Society for Marketing Professional Services, and the Alaska Superintendents Association, says President and CEO Rick Thomas. The Chariot Group also makes cash contributions to various organizations, including the Alaska Community Foundation, the Anchorage Downtown Rotary Club, and Anchorage Senior Center. It also donates services to support technology for a variety of community events. The small firm and its sister company, The Strive Group, contribute generously to the December 2017 | Alaska Business

community. For example, The Chariot Group donates about $22,000 annually to the Alaska Council of School Administrators and has contributed $25,000 to Covenant House Alaska over the past five years. “Our trade amount approaches $75,000 a year for all of our charitable giving,” Thomas says. In fact, philanthropy is part of The Chariot Group’s value system and corporate culture, with employees from top to bottom involved in a variety of community-centric organizations from the humanities to professional organizations such as Special Olympics; Alaska Run for Women; Abused Women’s Aid in Crisis (AWAIC); Skinny Raven Red, White & Blue; Boys & Girls Club; Bean’s Café; Victims for Justice; and United Way. The range of statewide nonprofit groups reflect individual employee interests and a deep collective commitment to making a difference. Their volunteerism is essential to Thomas. “I don’t want to work with a bunch of people who only care about the economics,” he says. “It’s required that everyone who works for us care for more than just the bottom line.” That philanthropic culture not only benefits the community but it also translates into tremendous employee retention for the company. Thomas says: “Almost a third of our

nonprofit associations and charitable causes. They donate funding and/or volunteer hours to the Civil Air Patrol, Alaska Dance Theater, Alaska Center for the Environment, Renewable Energy Alaska Project, Alaska Museum of Natural History, the Ron Jones Scholarship Fund at the University of Alaska Anchorage, Zonta Club of Anchorage, and One Family Community Birth Center. This summer, Business Insurance Associates’ staff participated in the Barefoot Mile, an event held in Anchorage by JOY International to raise money for awareness and prevention of human trafficking. “Our staff raised $600 and walked barefoot for one mile through downtown Anchorage with Dr. Jeff Brodsky, the founder of JOY International,” says Chris Pobieglo, president of Business Insurance Associates. “The event, which was hosted by Davis Constructors and Engineers, raised over $200,000 for JOY International.” Business Insurance Associates averages one hundred hours of annual community service, and its annual charitable giving ranges from $25,000 to $30,000. Those are pretty impressive numbers, considering that the company has a small office and a staff of seven, Pobieglo says. “This also doesn’t include additional charitable acts our employees do on

Image courtesy of The Wilson Agency

The Wilson Agency at the American Heart Association | American Stroke Association Heart Walk.

Yukon Equipment Established in 1945, Yukon Equipment is one of the oldest heavy equipment dealers in the state. The company’s extensive product line includes crawler tractors, front-end loaders, excavators, and compaction equipment and attachments for residential and commercial projects. “We have sold equipment into every remote location throughout Alaska,” says President Charles Klever. “Our parts and

“Our staff raised $600 and walked barefoot for one mile through downtown Anchorage with Dr. Jeff Brodsky, the founder of JOY International. The event, which was hosted by Davis Constructors & Engineers, raised over $200,000 for JOY International.” —Chris Pobieglo President, Business Insurance Associates employees have been here ten years. Serving the community is one of the things that has helped us retain employees because they feel their contributions matter and are helping to build a positive sense of place.” Thomas advocates charitable giving as an ongoing practice—even in tough economic times. He feels that cutting back on acts of kindness and caring for the less fortunate in times of financial uncertainty can be a tremendous mistake in the long run. Thomas’ penchant for philanthropy is driven by altruism: “It’s critical that we all give back and support our friends and neighbors,” he says. “If we don’t take care of our community, we won’t like the end results.”

Business Insurance Associates Business Insurance Associates was established in 1995 as an independent commercial insurance, surety, and risk management brokerage serving customers across Alaska as well as the Pacific Northwest. Licensed in seventeen states, the Anchorage-based firm brokers a host of commercial insurance solutions, including general liability, workers compensation, property, commercial auto, directors and officers’ liability, professional liability, surety bonds, and pre-paid legal plans. The owners and staff at Business Insurance Associates are heavily involved in supporting 60

their own,” he says. “We’ve made being a part of the community an important part of our culture.” In addition to its planned giving, Business Insurance Associates’ staff members keep bags in their vehicles to randomly hand out to homeless individuals in and around Anchorage. The bags—stuffed with socks, toothbrushes, toothpaste, hand warmers, sanitizer, band aids, and other useful items—are a simple way to help homeless people and remind them they are a valued part of the community. “If you see an orange bag, it’s probably one of ours,” Pobieglo says. There are many different organizations that provide vital services and support for people in the community, Pobieglo says. And at a time when funding is tight, it’s even more important for the private sector to step to the forefront and play a philanthropic role. “If you’re a proponent of free markets, capitalism, less regulation, and smaller government, as many in the Alaska business community are, then you have to support nonprofit and charitable organizations,” he says. Everyone should give, whether it’s $5 or $500, Pobieglo says. “It all adds up, and it changes people’s lives, even if you don’t directly see it every day,” he says. “I am thankful to all the volunteers out there who give their time— often behind the scenes and without fanfare— to support these groups and organizations.”

services employees take care of customers’ needs year-round in every part of Alaska.” Yukon Equipment, a subsidiary of Calista Corporation, serves customers out of three branches it operates in Anchorage, Fairbanks, and Wasilla. The company provides charitable support to a variety of organizations and community projects. It donates cash as well as in-kind and other services to select 501(c) (3)s and other charities. Yukon Equipment’s in-kind and volunteer projects provide equipment both bare and operated to help projects with construction equipment needs. The company contributes money, products, and services to organizations ranging from Calista Education Foundation, CIRI Foundation, and Healthy Alaska Natives Foundation to Anchorage Sports Association, Greater Alaska Boy Scouts, and Barrow Utilities and Electric Cooperative. “We feel it is good business to give back to the community,” Klever says. “Our employees feel strongly about giving to organizations in need. Our donations to Native-based organizations both directly and through our parent Native corporation continue ongoing.”

Spawn Ideas As a full-service advertising agency, Spawn Ideas strives to exemplify its name through its brand development, social media, web design, and other services. The Anchorage firm

Alaska Business | December 2017 www.akbizmag.com

“Alaska is at its best when we provide meaningful educational opportunities for our people. Education grows our workforce. Education enables us to solve the scientific and cultural challenges of today and the future. It’s the best investment we can make in Alaska.”

—Cary S. Keller Founder, Sportsmedicine Fairbanks

says: “So this year, if a for-profit we ask makes a $10,000 donation to a breast cancer cause, we’ll offer $20,000 in Spawn time and talent to the donor. If they donate $25,000, we’ll give them $50,000 of our time. We call it Dream Stream after the Dream Stream section of the South Platte River in Colorado [a place where fish live and breed]. Spawn’s Dream Stream cause-related effort is a place where ideas live and breed.” Although volunteerism is important, King says, Spawn doesn’t focus on keeping a running total of its community service hours. “This is meaningful work that we simple believe in doing,” she says. “I can estimate that last year alone, the agency likely spent 1,800plus hours. Our pro bono client last year was The Nature Conservancy [in Alaska and Colorado]. That effort, along with individual volunteerism, likely totaled those hours.”

Image courtesy of Spawn Ideas

“So this year, if a forprofit we ask makes a $10,000 donation to a breast cancer cause, we’ll offer $20,000 in Spawn time and talent to the donor. If they donate $25,000, we’ll give them $50,000 of our time. We call it Dream Stream after the Dream Stream section of the South Platte River in Colorado [a place where fish live and breed]. Spawn’s Dream Stream causerelated effort is a place where ideas live and breed.” —Karen King President and CEO of Spawn Ideas www.akbizmag.com

King says she is always impressed by the Spawn team that works on the agency’s pro bono efforts—especially when a new or refreshed passion for the cause emerges. “Like the modeling of volunteerism and board service, doing work for or on behalf of nonprofits inspires more of the same,” she says. Anchorage is a small community that delivers an incredible lifestyle, from people and places to culture, King says. Philanthropy helps Spawn Ideas demonstrate its appreciation for and commitment to the community. “Giving back is our way to demonstrate gratitude and do our part to ensure that everyone who lives here benefits from the experience of living in this great community,” she says.

Sportsmedicine Fairbanks Cary S. Keller, MD, FACSM, is the founder of Sportsmedicine Fairbanks, which offers comprehensive surgical and conservative treatment sports medicine and orthopedic injuries. He has worked for thirty-four years in Fairbanks and Sitka and traveled the state widely, providing teaching and consultation. Keller is committed to giving back to the people of Alaska, and philanthropy is core to his personal philosophy. For decades, he has been a steadfast supporter of the University of Alaska and the Fairbanks North Star Borough School District, establishing and maintaining academic scholarships and supporting athletic teams and events at all levels. “Alaska is at its best when we provide meaningful educational opportunities for our people,” Keller says. “Education grows our workforce. Education enables us to solve the scientific and cultural challenges of today and the future. It’s the best investment we can make in Alaska.” Aside from financial gifts, Keller generously donates his time, talent, and experience. He introduced certified athletic trainers to state high schools in 1984 and has served pro bono since then as team physician for district high schools, University of Alaska Fairbanks teams, Arctic Winter Games, Eclipse Soccer, the Northstar Ballet, the Alaska Smokejumpers, the Chena River Run, and the Midnight Sun 10K. Keller also chairs the Sports Medicine Advisory Committee to the Alaska School Activities Association and is passionate about providing sports concussion education for schools and health providers throughout the state at his own expense. R Tracy Barbour is a former Alaskan. December 2017 | Alaska Business

Image courtesy of Sportsmedicine Fairbanks

is as creative in its philanthropic undertakings as it is with its core services. “First, we mentor community service,” says President and CEO Karen King. “Agency leaders have always been very involved in the community, volunteering, serving on boards, etc. Many younger staff follow this modeled behavior.” Spawn Ideas—formerly named the Nerland Agency—is community-minded. The company purchases tables at local fundraising events and is a significant donor to Special Olympics Alaska, an organization that’s become near and dear to the agency. Spawn Ideas also matches United Way contributions of its employee-owners each year, up to $10,000. “That effort has made us a significant United Way donor for years and years, especially for a small business,” King says. Traditionally, Spawn offers a pro bono program each year. The company selects a single nonprofit and treats it like a paying client, offering agency time and talent to address a challenge or opportunity. “Annually, that pro bono client receives services valued at $75,000 to $100,000—at no cost to them,” she says. For 2017, Spawn Ideas modified its approach to community service. Now it plans to raise funds and new donors for a nonprofit cause each year. For this year, the agency chose breast cancer prevention and is encouraging for-profit companies to donate to the cause. Those that do will receive Spawn services totaling double their donation. King

OIL & GAS

Oil and Gas Legislative Priorities: Stability and Certainty Uncertain tax credit future, potential changes to tax structure chills projects By Julie Stricker

Alaska Business | December 2017 www.akbizmag.com

ust east of the Colville River on Alaska’s North Slope, winter winds whip over a lonely twenty-two-acre, L-shaped gravel pad. The pad—the site of Caelus Energy’s Nuna project—was expected to be home to hundreds of Alaskan oil workers this winter, but instead it remains barren and desolate. Caelus Energy is a privately-held independent exploration and production company headquartered in Dallas. It operates the Oooguruk field a few miles from Nuna and planned to bring Nuna online in 2017. Caelus shelved those plans last year when the fiscally-challenged state stopped paying out tax credits already promised to oil companies as a way to increase oil production. “It’s a shovel-ready project,” says Caelus spokesperson Casey Sullivan. “It will employ 300 Alaskans almost immediately and in a very short time it will produce 25,000 barrels [a day] of new oil for Alaska.” If Alaska indicated the payments would be resumed, Sullivan says, Caelus would be able to finish the work at the site and ramp up production as soon as late 2019. “It is literally one of those that’s on a platter. It’s ready for Alaskans,” he says. “We’ve lost thousands of jobs in the oil service sector. It could easily restart a little spark of our economy, get these people back to work and put more oil in the pipe very, very quickly.” Oil is more than important to Alaska; it is our economic foundation, historically

contributing nearly 90 percent of the state’s general fund revenues. Even with the current sluggishness in oil prices, which have hit state coffers hard, the oil industry still provides two-thirds of the state’s unrestricted funds and supports one-third of the economy, according to the Resource Development Council. But the uncertainties of the future of tax credits and potential changes to the tax structure put a chill on the Nuna project. It’s a refrain heard throughout the resource development industry in Alaska: fiscal uncertainty is stalling projects and delaying investments. Stabilizing the tax structure is the foremost priority the industry is taking to the Alaska Legislature in 2018. “We’re not advocating for any piece of legislation,” says Kara Moriarty, president and CEO of the Alaska Oil and Gas Association (AOGA). “We’re not trying to get anything changed. We’re just trying to maintain and keep a stable environment. The only thing that we would specifically be wanting is for the state to develop a better payment plan for the $600 [million] to $700 hundred million in tax credits.” What it comes down to is how Alaska can preserve a business climate that’s attractive and business friendly, she says. “The industry, as we continue to stay in the lower-for-longer price range, it just emphasizes the need for the government to send a signal that Alaska is a good place to do business, because right now I think the state has a reputation issue because there [have] been seven changes in twelve years on the tax side,” Moriarty continues. “Companies aren’t getting their credits paid, and it’s a low-price environment, and we’ve had to lay off people. How do we continue to weather the storm and how can Alaska change its reputation?

For us, enough is enough and we just need some stability and certainty.” A spokesperson for BP Alaska says the company supports AOGA’s efforts and ConocoPhillips’ spokesperson Natalie Lowman says, “We are not seeking any changes to the existing fiscal framework on oil taxes. What we are seeking is stability in the fiscal framework—we’ve seen a lot of instability in the last few years with frequent tax changes, and that creates uncertainty with our investment decisions.”

RDC: Keeping it Simple Resource Development Council for Alaska (RDC) chose to streamline its policy positions to focus on the need for a long-term fiscal plan rather than a laundry list of specific provisions, says Executive Director Marleanna Hall. “We don’t believe the economy can grow and add more jobs if the state continually turns to industry for taxes and doesn’t offer stability,” she says. The council won’t finalize its 2018 priorities until December, but Hall says she expects them to be similar to 2017’s, which advocate (1) to limit unrestricted general fund [which includes the operating and capital budget and statewide obligations but not the deferral of liabilities] spending to a sustainable level of $4.1 billion or less, and (2) for tax policy and regulatory stability that enhances the State of Alaska’s competitiveness for all industries to attract new investments and grow the economy. “Alaska’s budget policy should focus first on reversing the unsustainable budget by finding efficiencies and focusing on a series of annual reductions,” RDC says. “It must include framework to use the Permanent Fund earnings to support essential services. Finally, after reducing the UGF to sustainable levels, additional, broad-based revenue options should be considered.” RDC has advocated for a long-term fiscal plan for more than twenty years. In its talking points on the topic, the group notes that 2013 oil tax legislation sparked more than $5 billion in new projects. Oil production increased in both 2016 and 2017. Caelus, ConocoPhillips, and Armstrong all have announced new

The Oooguruk field a few miles from Nuna. Nuna was originally slated to come online in 2017, but development has been delayed, in part because of the uncertaintly of Alaska oil tax law. Image courtesy of Caelus Energy

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December 2017 | Alaska Business

oil finds that could add 550,000 barrels of oil per day into the pipeline. But in 2016, House Bill 247 phased out tax credits in Cook Inlet and sunsetted exploration credits on the North Slope. “Alaska cannot control the price of oil, but it can control what kind of business climate we create here: one that encourages continued investment and more oil for TAPS,” according to RDC. Backtracking on the tax credits has an immediate impact on oil company plans in the state. In late 2017, Furie Operating Alaska, an oil and gas company operating in Cook Inlet, told the state it was putting its exploration plans in its Kitchen Lights unit on hold because of “the lack of any meaningful appropriation to the oil and gas tax credit fund for the purchase of Alaska oil and gas production tax credit certificates.”

Projects Being Stalled in Wake of Tax Nonpayment BlueCrest Energy also initially said it would stop its Cook Inlet drilling program because of nonpayment of tax credits, but later announced it would drill at least one well in 2018. “The liabilities sitting out there because of the lack of significant payment of those credits is really impacting the companies’ ability to either keep investing in Alaska or attract capital to Alaska,” AOGA’s Moriarty says. “So if we were going to be advocating for anything, it’s a payment plan that’s more

than the minimum payment that the state’s currently been paying because at this rate, it’s going to take them twenty-some years to get those credits paid off. And that’s money that’s been spent, sunk, and gone, and now companies are scrambling.” The oil industry cannot endure another change in taxes, Moriarty says. “Enough is enough,” she says. No more changes to the tax system and a significant portion outstanding tax credits need to be paid. “It all boils down to how can Alaska send a message that they’re a good business partner, because I just think the state has a reputation issue that need to be improved,” she says. The Alaska Legislature can do a couple things to address its reputation in business circles, says Caelus’ Sullivan. “First and foremost is a substantive appropriation via the governor in his proposed budget,” he says. “By substantive, I mean a couple hundred million dollars to get those refunds off the books.” It’s the right time to do this, he says. The financial industry outside Alaska needs a strong signal that Alaska is open for business because right now it feels as though it’s not. In addition, the Legislature needs to finalize regulations around House Bill 111 (HB111) to ensure the viability of a secondary market for the tax credits. Right now, Sullivan says, companies can sell them to other entities in the state that can use them to offset their tax liabilities, but there are restrictions. HB111 sought to ease those restrictions.

Meanwhile, Caelus’ plans for 2018 hinge on the Legislature’s actions. Although Nuna is on the shelf for now, Caelus will continue to produce oil at its Oooguruk field. But another project faces more uncertainty. In late 2016, Caelus made a massive discovery near Smith Bay. The field is estimated to contain 6 billion to 10 billion barrels of oil, enough to boost the amount of oil in the transAlaska pipeline by 40 percent. Caelus planned to drill another well at the site this winter to further delineate its commercial viability. “But again, sort of the combo of the price and the policy, we’ve delayed that project; we’ve delayed that opportunity because it’s a super long-lead item,” Sullivan says. “You’ve got to get lots of people up and running well in advance and we just didn’t even know what the rules were because we’re still deliberating HB111, we didn’t know what the budget looked like, so that is delayed yet another year if not more.” Sullivan says the company has a lot of respect for the governor and the Legislature and understands the state’s focus isn’t just Caelus. “We really believe Caelus can be a great part of the solution and our projects will be an integral part of [Alaska’s] budget and fiscal solution for decades to come,” Sullivan says. “So we’re excited to get after it as soon as we can.” R Julie Stricker is a journalist living near Fairbanks.

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OIL & GAS

Alaska Business | December 2017 www.akbizmag.com

Oil Companies Cut Costs, Increase Efficiency, Push Discovery Efforts Such moves could lead to brighter days for oilfield services companies

By Julie Stricker

ate last year, Arctic Slope Regional Corporation announced it would close its Nikiski Fabrication Plant. Operated by subsidiary ASRC Energy Services, the facility’s forty workers serviced oil and gas platforms in Cook Inlet, making structural pipe and steel and installing electronics. Some of the facility’s equipment and workers were moved to another fabrication facility in Anchorage or to ASRC’s North Slope operations. Others lost their jobs. The consolidation was necessary as plummeting oil prices sent the industry, as well as Alaska’s economy, into a tailspin beginning in late 2014. According to a news release from ASRC spokesman Ty Hardt, the company needed to “streamline its operations” in order to remain competitive. It’s a story that has been repeated over and over in Alaska since oil prices took a nosedive from $100-plus per barrel in August 2014. Thousands of workers in the oil fields were laid off and the Alaska economy was decimated. The oil companies are supported by a multitude of companies that provide food, fuel, transportation, engineering, security, bear guards, housekeeping, and dozens of other vital services. Other businesses such as restaurants and hotels are also feeling the repercussions of continued low prices.

The sun sets over the Nuna exploration site. Image courtesy of Caelus Energy

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December 2017 | Alaska Business

More than three years later, oil prices are still hovering in the $50 to $60 per barrel range, with no change expected anytime soon. Oil services companies are in for the long haul, but it’s not an easy task in the oil industry’s “slower for longer” environment. The companies are slimming down, says Rebecca Logan, CEO of the Alaska Support Industry Alliance. The alliance is a nonprofit trade industry of more than 500 members that provide more than 50,000 jobs related to the Alaska oil, gas, and mining industries. As early as 2015, businesses tried to manage by restructuring, looking for efficiencies, or reducing employees’ salaries and benefits, but many were forced to lay off workers. According to the Alaska Department of Labor, the oil and gas industry had a workforce of about 11,100 in 2016, well below the monthly average of 14,100 in 2015. A 2017 McDowell Group report estimated that for each job in Alaska’s oil industry, there are twenty additional jobs in the Alaska economy connected to the industry.

Large, Medium, or Small, Lower-forLonger Oil Causes Cuts Everywhere Even the large oil companies are making adjustments. “Alaska must compete at this lower-for-longer oil price,” says a statement from Janet Weiss, president of BP’s Alaska region. “Prudhoe Bay has repeatedly defied the odds and remains a major contributor to US energy security and to the state’s economy. But it will take improved efficiencies and

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An aerial view of the Caelus Nuna project, currently on hold as the company awaits tax credit fate. Photo by James Helmericks/ Image courtesy of Caelus Energy

technologies and sound fiscal policies to keep the Alaska oil and gas industry competitive.” ConocoPhillips Alaska President Joe Marushack says the company has streamlined operations both in the office and in the oilfields. He estimates the company reduced operating costs by about 20 percent since oil prices tanked. ConocoPhillips lowered its capital costs by working closely with contractors to renegotiate contracts that were signed when oil prices were higher but are no longer sustainable. The company also reduced its workforce, forming a “stronger, leaner” operation than before the price crash. Several of the Alaska Native regional and village corporations, such as ASRC, Doyon, Calista, CIRI, and Chugach Alaska, have major subsidiaries in the oil services industry. Josie Hickel, senior vice president of Energy and Resources and Chugach Commercial Holdings, says the company is prepared to weather industry fluctuations, and sometimes cutting jobs is necessary. “The oil and gas industry and our state’s economy are both facing volatility, which can create uncertainty and dampen investment,” Hickel says. “As a service provider, we are always subject to fluctuations based on impacts to our clients’ operations.” When projects are forced to shut down early, which happened a couple of times in 2017, it can lead to workforce reductions. “Chugach as an organization remains very stable,” she says. “In an industry with plenty of competition and out-of-state players, our energy service companies are more agile and competitive in the local market because our focus is on Alaska and we know how to perform well in this unique environment. “Yet the fact remains that the trickle-down effects of the current economy will continue to drive costs lower and [lead to] fiercer competition. We have to remain nimble and focus on leveraging innovation, greater efficiencies, and creating more meaningful value for customers.” Chugach Alaska is a prime example of a healthy and diverse corporation that has weathered severe economic storms in the past. “Chugach is experienced at enduring tough cycles,” Hickel says. “Although the current oil and gas environment presents challenges, our corporation has multiple revenue streams that help offset risk in any one industry. From government services and facilities services operations to land development projects and an investment portfolio,

Chugach is in a position to ride out shortterm financial impacts of low prices.” The corporation is also focused on creating more meaningful value for customers in order to differentiate itself in the Alaska market, she says. “All of our energy services companies are agile, with low overhead expenses,” Hickel says. “This allows us to offer better value to customers and to adapt quickly to address business challenges our customers are facing. Our customer service philosophy also involves choosing customers who see us as trusted partners that are in it for the long haul. For instance, Chugach Alaska Services has provided staffing and oil spill responses on the transAlaska pipeline for twenty-four years. Enduring relationships like this allow us to provide superior operational and cost efficiencies.”

Technology, New Discoveries Keep Oil Patches Active Changes in technology also contribute to an atmosphere of “doing more with less” in Alaska’s oil patch. New drilling techniques such as directional drilling and new methods of oil recovery, such as fracking, are keeping Alaska’s oilfields productive even in a low-price environment. Coiled tubed drilling is one technique that is noted for its short rig-up times, small footprint, and low risk of spills. It can reduce drilling time by half, in some cases. Oil companies are looking for ways to boost production in existing fields, as well as focusing on their most productive assets. Caelus Energy spent much of 2017 conducting a multi-million-dollar project to fix equipment and clean out older wells that will help improve their performance, says spokesman Casey Sullivan. “We’re pretty excited about that program,” he says. “That was a big step for us given the condition of the commodity market and what’s going on with tax credits. We thought that was the right thing to do to keep our production up.” Despite the drop in workforce, production is up on the North Slope and it’s expected to rise again in 2018, according to the Alaska Department of Natural Resources. Although oil prices are forecast to remain flat for the time being, some big finds on the North Slope are evidence that oil service companies will have plenty of opportunities in the coming years.

Alaska Business | December 2017 www.akbizmag.com

“In 2018 we will continue to strengthen Chugach’s energy services companies by leveraging our industry expertise and knowledge in the unique Alaska environment. As an Alaska Native corporation, we have extensive experience working in Alaska, and we have strong ties and relationships that help us navigate the business and political challenges that our state faces today. We are committed to a strong Alaska economy for our corporation, shareholders, and customers—as well as all Alaskans. We believe we have a role to play in working with our legislators in Alaska and DC to make sure we are pursuing fiscally sound policies and long-term solutions that encourage responsible resource development for the state.”

—Josie Hickel, Senior Vice President of Energy and Resources and Chugach Commercial Holdings, Chugach Alaska

ConocoPhillips plans to drill five exploration wells on the North Slope this winter, if permitting goes through, according to Marushack. Three of the wells will be drilled near its Willow prospect in the Greater Mooses Tooth unit in the National Petroleum Reserve-Alaska. Willow could hold 300 million barrels of oil. Glacier Oil and Gas plans an exploration well, Starfish, adjacent to the Badami field this winter. The company owns processing facilities nearby that make the cost of new development viable. Caelus Energy’s Smith Bay discovery, which it announced in 2016, contains an estimated 6 billion to 10 billion barrels of oil. Although development plans are on hold for now, the company remains excited by the res-

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ervoir’s potential, Sullivan says. In March, Spanish oil giant Repsol and partner Armstrong Energy discovered 1.2 billion barrels of recoverable oil in the Nanushuk play in an area known as Pikka. They called it the biggest onshore oil discovery in the United States in thirty years. In late fall/ early winter, Armstrong sold its share of the Nanushuk prospect to Oil Search, a New Guinea-based company. Chugach Alaska’s Hickel says its energy services companies are ready for 2018 and are looking into the long-term future. “In 2018 we will continue to strengthen Chugach’s energy services companies by leveraging our industry expertise and knowledge in the unique Alaska environment,”

Hickel says. “As an Alaska Native corporation, we have extensive experience working in Alaska, and we have strong ties and relationships that help us navigate the business and political challenges that our state faces today. We are committed to a strong Alaska economy for our corporation, shareholders, and customers—as well as all Alaskans. We believe we have a role to play in working with our legislators in Alaska and DC to make sure we are pursuing fiscally sound policies and long-term solutions that encourage responsible resource development for the state,” she concludes. R Julie Stricker is a journalist living near Fairbanks.

December 2017 | Alaska Business

TRANSPORTATION

Photo by Sourdough Express employee

In 2011 Sourdough Express transported equipment, including planes, from Kulis Air National Guard Base to Elmendorf Air Force Base, a process that took several months.

Trucks in the Tundra Alaska’s multi-generational, family-owned transportation companies By Tasha Anderson

laska is all about transportation. It’s a factor in every potential resource development project; it’s a key component of building safe, functional communities; it’s the means by which Alaskan’s have access to oranges, candy canes, and Christmas trees. As Alaska’s industries have advanced and innovated new programs and techniques, the transportation industry has matured to transport whatever materials those programs and techniques require. Fortunately for Alaskans, many of the transportation companies servicing the state are home-grown: Carlile, now a member of the Saltchuk family of companies, was founded in 1980 in Alaska with two tractors. Lynden was established in Alaska in 1954 and has grown in to a multi-modal transportation organization comprised of more than fifteen companies. 70

Sourdough Express and Sourdough Transfer While Lynden and Carlile both have extensive histories and a significant presence in Alaska, there are few companies—in any industry—that can boast a longer history in the Last Frontier than Sourdough, which was established in 1898 and continues to this day, under the same name, to be family owned and operated. Sourdough has two main lines: Sourdough Express primarily deals in freight (including bulk freight, less-than-truckload (LTL), temperature control, and trans-loading) while Sourdough Transfer provides moving and storage services. The company has offices in Fairbanks and Anchorage. Bob Ellis started Sourdough in 1898 using dogsleds in the winter and horse-drawn wagons in the summer to move prospectors’ gear to mining camps. Today, the company has 130 full-time employees and operates 75 power units and about 250 trailer units, ac-

cording to Jeff Gregory, president of Sourdough Express and Sourdough Transfer. Gregory shares ownership of the company with his sisters: Debra Norum, VP of finance, and Karen Conover, VP of sales for the moving and storage division. The company states, “In the last twenty years, the Sourdough companies have seen continuous, controlled growth. This is due to the dedication, loyalty, and hard work of each and every employee.” Gregory says he officially started working at the company in 1975 when he was fourteen years old doing “anything they wanted me to do: shovel snow, shovel coal, clean floors, wash trucks. The yard boy was my title.” As he grew up, “I did about every position you can think of—mover, expediter, truck driver, mechanic.” Gregory was the one who moved

“We’re proud that we are still here, and we’re proud that we’re here for the long term and that we’re truly Alaskan.”

—Jeff Gregory President Sourdough Express and Sourdough Transport

Alaska Business | December 2017 www.akbizmag.com

“We’ve been here a long time, and we’re one of a handful of companies that built the trans-Alaska pipeline that are still owned and operated by the same family and under the same name.”

—Jeff Gregory President, Sourdough Express and Sourdough Transport

to Anchorage in 1987 to open the company’s first terminal there. In 1994 he moved back to Fairbanks and persuaded his two sisters to join him in purchasing the businesses, which took place over about five years starting in 1995. He says that what he enjoys most about his position is “watching people succeed, watching people grow, [and] seeing a lot of employee and customer relationships evolve into life-long relationships.” Gregory and his sisters mark the fourth generation in his family to run and operate Sourdough, and a fifth generation is already working in the family business; Gregory’s nephew Josh worked at the company on and off since he was twelve, “consistently for the last ten years,” Gregory says. His 10th anniversary at the company took place November 12, and he’s currently the vice president of Sourdough Transfer and director of operations for Sourdough Express. Sourdough’s long history in Alaska has given them a front-row seat to much of the state’s growth. “We’ve been here a long time, and we’re one of a handful of companies

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that built the trans-Alaska pipeline that are still owned and operated by the same family and under the same name,” he says. The company also managed to pull through the oil price crash in the 1980s; however, he says the most recent crash of oil prices was difficult. “Alaska’s economy and the price of oil significantly reduced capital spending on the North Slope and reduced the amount of projects out there. We’re an asset-based company that had just gone through years of growth, so we saw a drastic reduction in revenue,” explains Gregory. For the last three years the company has shrunk. “It’s been a challenging task, but we’ve been successful [at right-sizing] and we think it’s hit the bottom and we’ll start to see investment on the North Slope is returning. We think we’ve survived another downtown.” One particular bright spot the company sees is an increase in military-related activity in the interior, including increasing activity to host two F-35 Lightning II squadrons at Eielson Air Force Base. “Alaska is a significant place for the military and Department

of Defense,” and Sourdough Transfer caters its services to military families. He says Sourdough Express has already seen an uptick in moving freight for the military for projects at Clear Air Force Base and Fort Greely. Sourdough has been moving freight and families for the military for fifty years; both Sourdough Transfer and Sourdough Express were tapped by the military to move goods and equipment for the 176th Wing of the Alaska Air National Guard to Elmendorf Air Force Base from Kulis Air National Guard Base in 2011. “It took several months,” Gregory explains. “We moved the whole base, building after building, following their timeline.” In addition to furniture and household goods moved by Sourdough Transfer, Sourdough Express transported the planes, some of which were placed on flatbeds while others were towed behind trucks, primarily at night and occasionally with police escort. “It was unique, seeing that pass through town.” The company states that Sourdough has a simple vision, which is to be the best transportation company in Alaska. “We’re proud that we are still here, and we’re proud that we’re here for the long term and that we’re truly Alaskan,” Gregory says.

Air Land Transport Air Land Transport was founded in 1976 by brothers John and Jim Snead and has been family-owned and operated since. “Air Land is a well-rounded trucking company,” says

December 2017 | Alaska Business

Air Land Transport is owned and operated by the Snead family. From left to right: John G. Snead, Monique Snead, Johnclaude (JC) Snead. Photo by Saadia Snead

General Manager Johnclaude (JC) Snead, who stepped into the position in the summer of 2017. “We have daily line haul to and from our three terminal locations in Anchorage, Kenai, and Fairbanks. Full load, LTL, and expedited freight services are our specialties.” From the two brothers Air Land has grown to sixty-three employees, all of which reside and work in Alaska. The company utilizes a fleet of sixty power units and more than one hundred trailers. Snead says the company’s growth was possible because of its focus on developing lasting relationships with its customers. Air Land has built relationships through quality service, and one of the options they offer to meet their customers’ needs is “Hot Shot” shipments, which “basically means a driver drops what they’re doing and focuses on one customer’s freight as quickly as possible.” He says that Air Land has requests for this service a dozen or more times in a year, mostly to transport perishables and materials for the oil industry—“if the freight has an expiration date or the customer needs a part for a piece of equipment.”

“It’s always an option to venture out and try other markets, but for now we’re an in-state carrier and we’re focusing on our in-state customer base.”

—Johnclaude Snead General Manager Air Land Transport

One of the shipments that’s always time sensitive is radioactive material, which Air Land moves for a healthcare company. “The shelf life isn’t very long, so we have to get it and go,” Snead says. All of Air Land’s drivers are hazmat certified and DOT and TSA compliant, enabling them to truck material quickly, no matter what it may be. Snead himself has driven trucks for Air Land, and he’s been a part of the family business since his youth. “I was put to work at a young age; I was the first grandson in the family, so when it came to doing the dirty work I was the one cleaning the bathrooms and/or equipment.” He says he grew up in transportation, riding in his father’s truck as an infant. As a teenager he worked in the warehouse, doing whatever tasks were needed, and he first started driving a truck during the summers when he was in high school, though “it was just a one-ton box truck, almost a van,” doing local deliveries in Anchorage. Snead was a scholarship athlete and played basketball at Northeastern State University for four years, graduating with a business degree. “I was debating whether to come back [to Alaska] or not and my Grandfather said, ‘Get your butt back here and work,’” Snead laughs. So he did. Immediately after school he drove a truck until his grandfather, who was the company’s owner and president at the time, promoted him to account development executive. Snead was in this role for more than three years before moving into a leadership position at the company. Air Land is a family-operated company: Snead’s grandfather, who founded the company, was the owner and president until he passed away in the summer of 2017. Snead’s father, John, worked at the company for

“I was put to work at a young age; I was the first grandson in the family, so when it came to doing the dirty work I was the one cleaning the bathrooms or equipment.”

—Johnclaude Snead General Manager Air Land Transport

twelve years until he switched careers to teaching; he remains active in the business and is a co-owner. Snead’s aunt Monique grew up in the company as well and has performed many jobs for Air Land; today she remains active in the company and has a leadership role. Snead is excited about his new role: “It’s going great and I’m having fun. It’s an easy transition with the supporting cast here at Air land.” Moving forward, he plans to update Air Land’s operations to utilize more modern technology such as online bills of lading, freight tracking, and potentially implementing a computerized dispatch system. He also would like to see the company continue its growth in Alaska. “It’s always an option to venture out and try new markets, but for now we’re an in-state carrier and we’re focusing on our in-state customer base.” R

Tasha Anderson is the Associate Editor for Alaska Business.

Alaska Business | December 2017 www.akbizmag.com

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TELECOM & TECH

Staying Ahead of the Pack with Tech Advanced technology allows businesses to do more with less By Tom Anderson

ew Research Center reported earlier this year that more than three-quarters of US adults (77 percent) own a smartphone, an increase of 35 percent compared to 2011. Approximately 84 percent of American households contain at least one smartphone, according to a fall 2016 Pew survey. For many, smartphones are a significant part of their online experience: 51 percent of adults use their phones for online purchases, and 12 percent of adults report being “smartphone-only” Internet users. At home 80 percent of US households have a desktop computer or laptop, and 68 percent of households have at least one electronic tablet—altogether 90 percent of US households report having at least one smartphone, desktop or laptop computer, tablet, or streaming media device. Smart products and advanced technology are ubiquitous in the daily lives of the majority of people; in the corporate world, communication-based technology is not “nice to have,” it’s a requirement. 74

Business executives have their fair share of choices when it comes to new and cutting-edge technology. Apple operates a popular outlet in the 5th Avenue Mall in Anchorage for phones, tablets, computers, and anything and everything remotely related. National technology outlets such as Best Buy offer diverse inventory, while chains including Office Depot and Office Max serve business needs from stores scattered throughout the state. GCI, Verizon, and AT&T, among other telephony companies, operate offices and retail storefronts statewide, offering full lines of phones and accompanying devices and equipment.

Technology in the Advertising World Mike Robbins has been in the advertising and communications industry in Alaska for more than thirty years. As the owner/president of Alaska Integrated Media, he oversees the operation of four radio stations and a staff of nineteen in Anchorage. Robbins is also the owner/ CEO of The Robbins Agency, a full-service advertising and marketing firm operating in Southcentral Alaska since 1991. His latest venture is T2W, a mobile marketing company. “Staying current in technology is vital in all three of my businesses,” says Robbins. “Between our three companies, and other business investments I’m involved with,

we’re employing over forty people. Across the spectrum of staff and employees, all of them rely on electronic tablets, computers, and a personal smartphone.” It can get expensive, Robbins says. He acknowledges that staying technologically current is integral to his annual budgeting and ultimate success. Cost, sophistication, and utility are part and parcel to his trade, so staying on the cuttingedge of technology in all three of his industries is a foundation of his business model. To do so, Robbins assigns staff members to monitor news and announcements on evolving equipment, gleaning information from manufacturers, consumer reports, or other reliable sources. “In the realm of radio broadcasting, remote technology is imperative because we’re often at off-site locations but still want in-studio sound quality,” he says. “We’re using the latest in software and attachments to our smartphones and tablets, primarily Apple manufactured, while our sales staff has moved to Apple’s iCloud computing so they can use their iPads in the field with file-share promotions, contracts, rate cards, and statistical presentations, all of which shortens the selling cycle.” Additionally, in 2018 Robbins is expanding into a comprehensive touch-screen suite of computers, embracing the new technology to better serve his employees and clients.

Alaska Business | December 2017 www.akbizmag.com

Photo by Clayton Wade

Michael Miller (left), owner of Out of a Jam Solutions, works with Savannah Evans, the company’s operations manager.

A Tech Company’s Perspective Michael Miller is the owner of Out of a Jam Solutions, an Apple consultancy that’s been assisting business owners since 2000 in the Mat-Su Valley and Anchorage. Miller’s technical support team offers onsite services at businesses including training, repairs, and monitoring. Miller says new computer-related technology for a business tends to fall into two catego-

ries: products that CEOs and executives value because they make operations more efficient and cost-effective and new equipment and software that IT departments can incorporate to make operations more efficient or secure. For the latter, security is the foremost concern. “With the move to cloud services and users leveraging their personal devices to access company data, the nature of security has completely shifted,” says Miller. “Encryption—

poorly understood and often inadequately implemented—must become nearly ubiquitous to stop both state actors and malicious hackers from causing massive data loss.” Advancing technology can provide innovative security solutions; for example managing a multitude of complex passwords on a regular basis without being “that” person who tapes passwords to the side of a monitor is an issue for many computer users. Miller says that new technology can reduce password reliance, using alternative means of authentication such as fingerprints, facial recognition, and smart watches, all of which are burgeoning technologies on corporate wish lists. “We’re finding savvy CEOs have already started to integrate the Apple Watch for existing applications like the popular Salesforce CRM,” says Miller. “This is the tip of the iceberg as custom apps are beginning to hit the scene. Users can unlock company assets, check in and out of locations, or spend allotted funding all from their wrist.” Miller says his personal favorite and “coolest” upcoming revolution, from both the IT and CEO perspective, is “machine learning,” by which technology advances in such a way that computers “learn” to perform functions without explicit programming. He says that, thanks to the cloud, available computing power is skyrocketing. Increased data capability allows everyday tasks to be analyzed and improved in real time. Google and other tech companies are already using machine learning to prevent mistyped emails from

It’s here!

The Alaskan Arctic is now connected with 21st century communications. The Quintillion fiber system is complete and in service, bringing high speed internet to northern Alaska communities from Nome to Prudhoe Bay. Introduction of high-speed internet to Quintillion’s markets will enable improved health and education services, help spur economic development, empower local businesses, and allow consumers access to video and other high-speed applications.

Internet at the Speed of Light. Powered by Quintillion. To learn more and see what's next, go to www.Qexpressnet.com

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December 2017 | Alaska Business

being lost in cyberspace, while virtual assistants provide personalized information such as alerts to traffic and weather conditions that could affect the user’s commute. “These technologies are finally becoming available for regular companies to customize without having to reinvent the wheel; that helps the bottom line,” adds Miller. Miller has a bright prediction for technology in business: “The future just around the corner is one where an email is sent to a company and the system recognizes it as a client that frequently communicates with a staff member. That employee receives a notification of the query on his watch, and with a single tap sends an email that memorializes an appointment. Phishing emails, in the meantime, are ignored because a user is never requested to reset their passwords as long as they have their fingerprint or wearable device. It’s efficiency at its best.” Miller says a complete spectrum of nextgeneration technology including laptops, desktops, tablets, and smartphones will be released in 2018 and beyond, thanks to continuing corporate demand for new and improved devices. “Augmented reality and 3D printing will completely change our lives and business as we know it, but there are a few years before those technologies start to mature.”

Technology in Sales Nick Olzenak is the vice president and general manager of employee-owned Alaska Mining & Diving Supply, which specializes in marine and power sports equipment as well as recreational mining supplies. Olzenak says he and his staff use HP computers and a mix of Apple and Android smartphones. He also uses ASUS wireless laptops throughout the dealership and remotely on service calls to provide direct connectivity to OEM (original equipment manufacturer) websites where software and firmware are constantly being updated. “The key to our business remains stellar customer service in concert with cuttingedge services and products,” says Olzenak. 76

“That means we try to use the most modern, fastest operating computers and Internet speed for research, ordering, delivery, and sales. It all has to run smooth, from inventory programs to our smartphone apps and eCommerce website platforms. Smartphone connectivity is just important.” Olzenak adds that with the growing importance of social media, the smartphone is his tool of choice for taking photos of new products, editing, posting, and promoting on social media platforms, all from one device. He says his smartphone saves time and expedites putting products in front of the customer. He adds that some CEOs and business managers are not tech-savvy, but he and his management team make a concerted effort to remain educated on the newest updates in operating systems, computers, smartphones, and programs so they don’t fall behind in customer service.

Keeping Technology Relevant Kristie Babcock is the owner of a State Farm Insurance agency in Kenai. Babcock special-

Meeting Tech Expectations People rely both on technological tools and the service providers that keep them running. “Over the past ten years, we’ve come from not having Internet on our phones to having the world at our fingertips,” says Greg Klimek, vice president of Wireless Marketing

“The reality is our clients increasingly seek self-sufficiency in transactions— and whether it’s midnight or on a Sunday afternoon, they want to use their own devices to do business. State Farm wants to afford customers easy access to information and eCommerce, and that comes through functioning apps and web access through phones and computers.”

—Kristie Babcock Owner, Kenai-based State Farm Agency

Alaska Business | December 2017 www.akbizmag.com

Photo by Narrow Roads Productions

Photo by Michael Miller

Out of a Jam Solutions is an Apple consultancy, owned by Michael Miller; his business partner Heidi Weiland (left) collaborates with the company’s operations manager, Savannah Evans (right).

izes in auto, home, disability, and small business insurance. Babcock’s insurance team uses technology hardware and software uniformly selected by her corporate partners. She says the real challenge is preparing for a customer to connect seamlessly across all available mediums. “The reality is our clients increasingly seek self-sufficiency in transactions—and whether it’s midnight or on a Sunday afternoon, they want to use their own devices to do business,” she says. “State Farm wants to afford customers easy access to information and eCommerce, and that comes through functioning apps and web access through phones and computers.” State Farm’s apps, such as Pocket Agent, enable clients to quickly access their accounts and communicate with an agent. “A client may start a transaction online but then require assistance, so our company’s priority, in the ‘tech sense,’ is to maintain platforms that are in sync with updated and new smartphones, tablets, and computers. That takes research and monitoring of products and upgrades as they occur monthly. We owe modern communication to our client.” Babcock sees the insurance industry as maturing in online presence and technological advancements. She says her team takes a two-pronged approach to service: educate clients on smartphone app options for ease of access and payments and equip her agents and staff with the best-performing devices and computers to deliver services. “My personal favorite technology is the Apple iPad Mini,” says Babcock. She adds that in 2018 any tech purchases by her agency will be based on new product utility that complements current services. “We don’t upgrade needlessly, but we do want to help people manage their risks with the best technology available for that purpose.”

for GCI. “Now we can be on Facebook one second then answering an important work email the next—technology has made our life a blend of business and personal that we’re constantly transitioning between throughout the day. We’ve become more and more accessible.” Alaska-grown GCI provides access to modern technology for its clients, customers, and employees. Klimek says the Apple iPhone 8 smartphone launch has been very successful for GCI, and the iPhone X is looking like it will be equally popular. The recent Samsung Note 8 launch was particularly successful because it’s the first time GCI was able to launch that device with national carriers. “Now, demand for the Note 8 remains strong as we await our next shipment,” says Klimek. GCI also offers the ultra-rugged Cat S60 smartphone which is waterproof, dustproof, and built to military standards. It works in extremely warm and extremely cold conditions—handy for many Alaskans. The company predicts this phone to grow in popularity and sales in 2018, especially with management and staff in the building trades. Klimek says, aside from smartphones, tablets are also extremely popular with executives and CEOs, particularly the iPad Pro series because of its ease of use and efficient platform designed to answer emails, write documents, and perform other businessrelated tasks. “Manufacturers, like Apple and Samsung, are very competitive and will continue to make

NEVER MAKE ANOTHER COLD CALL

strong enhancements to their products based on customer feedback and requests in 2018, which is great news for everyone,” says Klimek. “Devices just keep getting better and better through increased capacity, faster processors, higher screen resolution, [and] better cameras… these improvements make for a continually improving customer experience that business executives target.” Alaska has challenging travel logistics, so the ability to communicate while traveling to remote locations is important for employees, managers, and owners alike. Klimek says, “Our wireless network is the largest in the state, covering 97 percent of Alaska’s population.” He adds that a strong partnership with T-Mobile, which covers 99 percent of the Lower 48’s population, also gives GCI customers strong wireless service when they travel. Even with extensive coverage, executives will continue to face hectic schedules no matter how far technology advances. “Part of busy executive life is a schedule that is always changing,” says Kate Slyker, chief marketing officer with GCI. Slyker says GCI offers Apple TV and Roku devices in its stores, with a field service team that will set up systems in customers’ offices or homes. While traditionally marketed for home use, Slyker says that since introducing these devices business customers are asking for more and more “Internet of Things” products, which GCI delivers. “This holiday season GCI will be adding Google Home and Nest thermostats to our product line-

up, based on customer demand,” says Slyker. “Our customers have come to depend on our Internet connectivity, and we are excited to be able to provide them with these new items on their ‘tech wish list.’”

Tech in 2018 As 2018 approaches, businesses continue to seek higher performance and added advantage over their competition. “Cellular phone and computer technology changes so rapidly that a CEO needs to actively answer what technology is needed, when it’s going to be available, and how much will it cost,” says Alaska Integrated Media’s Robbins. “2018 will be a big and bold year for computer advancements because it’s becoming more of a priority than ever before globally,” he adds. “If your staff has the most optimum functionality, and the newest smartphones and computers in sync with clients and B2B transactions, you’re on par with the competition. A little research and due diligence on 2018 tech options and you’ll be ahead of the pack. Technology matters for both performance and delivery. It also keeps you in business.” R Tom Anderson is a lifelong Alaskan freelance writer for local and national publications and owns a public relations firm.

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December 2017 | Alaska Business

CORPORATE GIVING

EAT

SHOP  Compiled by Tasha Anderson

Gift Baskets

oliday gift baskets always go over well; they’re several gifts all wrapped up in one shiny package, perfect for a single person to indulge or for a group to share. Many Alaska companies spend thoughtful hours designing gift baskets that are tailored to be an exact fit for the gift-giving needs of corporate clients, customers, coworkers, and peers. Below is a selection of Alaska companies that feature gift baskets comprised of Alaska products: a fantastic taste-of-home for Alaska connections or a unique treat for national or international associations. Alaska Artisanal Alaska Artisanal “Gives the Gift of Alaska.” The company scours local farmers’ markets, unique shops, and small marketplaces to source “wholesome, gourmetquality Alaskan products grown and made by skilled Alaskan artisans.” Once Alaska Artisanal has found their quality selection, they curate unique Alaskanmade products into gift baskets for any occasion. Online Alaska Artisanal allows shoppers to browse for pre-made baskets; additionally, Alaska Artisanal creates custom gift boxes for corporate gifting. “As with all of our gift boxes, our custom corporate boxes are filled with unique 100 percent Alaskan-made small batch specialty foods and also include: customization to meet a wide range of prices; free shipping or batch delivery to one location in Anchorage or Girdwood; and gift wrapping and gift note cards, as well as information about each artisan and a map of their locations throughout Alaska.” alaskaartisanal.com Indian Valley Meats Doug Drum founded Indian Valley Meats next to his cedar home in Indian, Alaska, to suit his outdoors lifestyle. The company offers four gift box options, including 78

PLAY

STAY

Emily Olsen ticks every box on the Alaska Business Customer Service Representative checklist:

 Attention to detail  Communicates clearly  Invests in customers  Christmas Elf

©Judy Patrick Photography

the Alaskan Favorite, which is shelf-stable, and Arctic Sun Melody, Midnight Sun Special, and the Alaskan Sampler, which require overnight shipping. The gift packages include many Alaska meats and fish including salmon, caribou, reindeer, or musk ox, among others. According to the company, “All of our products reflect our Alaskan surroundings.” indianvalleymeats.com

Mylords Floral Mylords Floral provides an array of flowers, plants, and gifts for the holiday season. Included in their offerings are three gift basket arrangements: A Whole Latte Fun, Fruitful Fancies, and the Fruit & Gourmet basket. The company says, “Gift baskets are appreciated by both men and women alike, so let Mylords Floral help you express your feelings in a wonderful way. A gift basket is perfect for groups since they offer a little something for everyone to enjoy, but at the same time you can spoil someone with a basket all to themselves.” Mylords Floral offers same-day delivery in Anchorage. mylordsfloral.com The Gifted Basket The Gifted Basket offers “designs of distinction,” includ-

ing Alaska-themed and holiday and occasion themed baskets (which can be hand-delivered in Anchorage or shipped nationwide), in addition to baskets specifically designed to be shipped. The company says, “We do not stock pre-made gifts. All of our gift baskets are made fresh to order, not mass-produced and placed on a pallet in some big warehouse somewhere to collect dust. When it comes to our commitment to quality, excellence, and personal touch—we enjoy serving you with our very, very best.” The Gifted Basket’s Alaskathemed baskets feature an assortment of products made by Alaskans and are available at a range of prices, making them a great option for friends, family, clients, or other business associates. giftedbasketonline.com

Alaska Wild Berry Products Alaska Wild Berry is an Alaska icon for visitors and locals alike. They have approximately twenty-five different pre-arranged gift pack and gift basket options, which can be quickly and conveniently browsed on their gift basket quick comparison page, which includes pricing. Those interested can also contact Alaska Wild Berry to create a customized gift basket or package. The company states: “Our berries come from all corners of the

Alaska Business | December 2017 www.akbizmag.com

to share their products and we are here to make sure they get to you. The crates themselves are also handcrafted here in Alaska. You can order one of our pre-filled crates or build your own crate from our list of products.” apieceofalaska.com

Alaska Sausage and Seafood Alaska Sausage and Seafood specializes in all-Alaskan gift packages that features wild Alaska smoked salmon and gourmet reindeer sausages. Their eleven curated gift packages are perfect for Alaska clients and/or associates or for business connections in the Lower 48 that appreciate quality Alaska meats and fish. Alaska Sausage and Seafood gift packages are shipped in a box with gel ice to ensure their freshness and quality upon delivery. The company says, “Alaska Sausage and Seafood is known for our smoked seafood, including our line of delicious smoked salmon, as well as our gourmet Alaskan sausages with reindeer meat. Let your friends, family, or clients ‘taste the best’ of these Alaskan treats with one of our gourmet gift packages.” alaskasausage.com

Muffy’s Flowers & Gifts In addition to an array of flower arrangements and add-on gifts such as plush animals, balloons, chocolate, and body lotion, Muffy’s Flowers & Gifts offers a cookie bouquet gift basket, described as “a basket full of yummy goodness—in your choice of vanilla chocolate chunk or a baker’s assortment of three to four different flavors.” Muffy’s Flowers & Gifts delivers same-day in Anchorage and JBERElmendorf and JBER-Richardson. The company has been family-owned and -operated for twenty years. muffysflowers.com

A Piece of Alaska Alaskan artists are always featured in all of the crates that A Piece of Alaska curates; the company offers three- and six-month crate subscriptions as well as themed crates such as Bears and More Bears, Alaskan Ornament, Alaskan Cook’s, Holiday Matanuska, and more. The locally-owned company says, “We offer Gift Crates filled with products made by Alaskan artists, crafts people, and small businesses… Alaska has so many talented artists that are eager

Alaska Wild Harvest Locally-owned Alaska Wild Harvest offers a range of products including birch syrup, birch water, Chaga tea and extract, wild fruit creations, salmon, and soaps. The company thoughtfully arranges many gift basket options featuring their Alaskan-grown products. “Our Wild Harvest Gift Crates are beautifully packaged in a locally-crafted cottonwood crate and branded with our logo. Our gift baskets are All Alaskan and All Awesome. Choose from our readyto-go crates and baskets or design your own,” the company says. Customers can also choose to add a locally-crafted tin ornament for a festive touch. The Large Alaska Wild Office basket is particularly suited

to treat a corporate group, designed for twelve to twenty people to share. alaskabirchsyrup.com

Trapper’s Creek Located in Anchorage, Trapper’s Creek has been in the smoked salmon business for more than twenty years. One of their brands is Alaska’s Best Wild Salmon Jerky, available in four gift basket options that can be shipped throughout Alaska or to the Lower 48. The company says, “Our Smoked Salmon Jerky is made from wild salmon caught fresh from the icy clean waters of Alaska. Each salmon is hand filleted, carefully seasoned, and slow smoked over cherry and alder wood for over twenty-four hours. This salmon is perfect for a healthy, easy, and delicious snack.” alaskasbestsalmonjerky.com Hunnibee Gift Solutions Hunnibee Gift Solutions specializes in gift baskets and candy bouquets and is owned and operated by Alaskan Melissa Rogers in Wasilla. Hunnibee Gifts options include coffees, teas, spices, biscotti, sausage, syrup, jam, candy, glacier water, ceramic mugs, art, skincare products, and more. Rogers says, “Here at Hunnibee Gifts I’ve created hundreds of one-of-a-kind gift creations for numerous occasions. From premade gifts to custom orders, each gift is carefully assembled and wrapped by hand. No two people are alike, thus no two baskets are alike… I specialize in creating individual orders and large corporate orders [and] no job is too big or too small.” hunnibeegifts.com R

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OOMINGMAK

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December 2017 | Alaska Business

CORPORATE GIVING

state and our goal remains the same: to bring the taste of delicious and wild Alaskan berries to as many people as possible… So sit back and marvel at the magnificent gifts that Alaska has to offer then share them with everyone you know.” alaskawildberryproducts.com

EVENTS CALENDAR DECEMBER 2017

EAT

SHOP

Anchorage

PLAY 

Compiled by Tasha Anderson

Anchorage DEC

STAY

Fairbanks

Alaska Railroad Holiday Train

2-16 Recurring weekly on Saturday at 10 a.m. and 3 p.m., special Alaska Railroad holiday departures are a wonderful way for the entire family to get into the spirit of the holidays. There is an exciting assortment of fun and games to be had aboard the Holiday Train including a coloring contest, holiday carolers, a magician, door prizes, and even a visit from Santa Claus. alaskarailroad.com DEC

4-21

Christmas in Spenard

“Christmas in Spenard” is two hours of satirical Alaska musical comedy, a live band, singers and dancers, a spectacular high definition multi-media presentation, and approximately three minutes of sentimental holiday fluff. There is no show like “Christmas in Spenard,” which stars Mr. Whitekeys and an all-star cast. Attendees must be age twenty-one or older with valid ID to attend the twelve showings at the Hard Rock Café in downtown Anchorage. anchorage.net

DEC

Fancy Nancy

Based on the popular children’s book series by Jane O’Connor, Fancy Nancy and her friends are going to perform in their very first show. Nancy is positive (that’s fancy for 100 percent sure) that she will be picked for the coveted role of mermaid. When another girl wins the role instead, Nancy is stuck playing a dreary, dull tree. Can Nancy bring fancy flair to her role, even though it isn’t what she wanted? Written in 2012 and directed by Colby Bleicher. cyranos.org

2-17

DEC

Solstice Tree Tour

Nordic Skiing 17 The Association of Anchorage presents the annual Solstice Tree Tour—a uniquely Alaskan celebration of Winter Solstice and the return of longer

DEC

Design Alaska Holiday Concert

The Design Alaska Holiday Concert, which sells out every year, features Eduard Zilberkant conducting the Fairbanks Symphony Orchestra, the Fairbanks Symphony Chorus, and the Northland Youth Choir. Guests will be treated to traditional holiday favorites at the C.W. Davis Concert Hall on the UAF Campus. The holiday market opens at 3 p.m. and the concert begins at 4 p.m. fairbankssymphony.org

days. This event encourages members of Alaska’s northern community of all ages and abilities to get outside and celebrate the winter solstice. The Solstice Tree Tour will showcase the trees along the first 2.5 k of the Mize Loop. Local businesses sponsor trees along the route and decorate them to create a winter wonderland along one of the most well-loved trails at Kincaid.

Admission to the tour, which takes place from 4 p.m. to 7 p.m., is free. anchoragenordicski.com

Eagle River DEC

Winter Solstice Celebration

16 The Nature Center hosts their annual celebration of the winter

RENTALS. LEASING. CAR SALES.

AVISALASKA.COM | 907-249-8260

Alaska Business | December 2017 www.akbizmag.com

1-17

Celebration of Lights Fireworks

Celebrate the sun’s slow return with fireworks launched from the Chena River downtown, presented by the Downtown Association of Fairbanks. downtownfairbanks.com

solstice, the shortest day of the year. Guests can bring their own lantern or borrow one from the Center. Dress for being outdoors, and follow the lantern-lit path along the Rodak Trail to the big bonfire anytime between 6 p.m. and 8 p.m. Parking will be allowed on the west side of Eagle River Road for this special event. Allow time to park and walk to the trailhead. Please bring non-perishable food items to be donated to the Eagle River Food Bank. ernc.org

Fairbanks DEC

DEC

This is Ebenezer Scrooge’s journey from an embittered, ungenerous creature into a giving, caring human being at the hands of three spirits, who, one fateful Christmas Eve, show him the true meaning of life. The full spirit of the book, as well as those of Christmases Past, Present, and Yet To Come, are brought to life onstage in this beloved Christmas classic. fairbanksdrama.org DEC

DEC

A Christmas Carol

Mushing Madness

Starting at 10:30 a.m. and sponsored by the Junior Dog Mushers of Interior Alaska, Mushing Madness takes place at the Jeff Studdert Race Grounds and is an informal opportunity for young mushers ages two through eighteen to enjoy dog mushing without the pressure of racing. juniordogmushers.com

New Year’s Sparktacular

Brilliant fireworks are launched from UAF’s West Ridge at 8 p.m. Celebrate the New Year and kick off UAF’s centennial with cocoa and cookies at the University of Alaska Museum of the North. explorefairbanks.com

Juneau DEC

Steel Magnolias

1-31 Perseverance Theater presents Steel Magnolias, a story of love, friendship, and hair products, by Robert Harling and directed by Carolyn Howarth. Longtime friends in a small southern town fill Truvy’s hair salon with laughter, gossip, and tears. As hair is dried, dyed, and styled, women’s lives unfold and show the meaning of true friendship. ptalaska.org

Holiday Pops

off the holiday season 16-17 Kick with friends and family at the Annual Holiday Pops Concert. Bring the whole family to enjoy an evening of favorite holidays songs performed by friends, family, and neighbors at the UAS Egan Library on December 16 at 7 p.m. and at the Juneau Arts & Culture Center at 4 p.m. on December 17. jahc.org

Wasilla DEC

Mat-Su Concert Band Holiday Concert

16-17 The Mat-Su Concert Band is the largest and oldest musical organization in the Mat-Su Borough and provides adult musicians from across the Valley and surrounding areas in Alaska the opportunity for musical expression and enjoyment beyond high school and college, promoting artistic enrichment in concerts and preserving the rich repertoire and cultural history of the wind band. Their Holiday Concert is performed at the Glenn Massay Theater. glennmassaytheater.com Palmer DEC

Colony Christmas

Colony Christmas is an old-fashioned country Christmas celebration with craft fairs, horse-drawn and reindeer sleigh rides, pictures with Santa, fireworks, and a parade, all in Downtown Palmer. palmerchamber.org R

8-10

Barrow

Kotzebue Fairbanks

Nome

Delta Junction

Mat-Su Anchorage Valdez Soldotna

Bethel Dillingham

Juneau Sitka

Kodiak Ketchikan Unalaska/Dutch Harbor

www.akbizmag.com

December 2017 | Alaska Business

EVENTS CALENDAR DECEMBER 2017

DEC

Fairbanks

Business Events DECEMBER

DEC

ALASBO Annual Conference

3-6

Anchorage: Annual conference of the Alaska Association of School Business Officials. alasbo.org

DEC

2017 Alaska Young Fishermen’s Summit

6-8

Dena’ina Center, Anchorage: AYFS is designed to provide training, information, and networking opportunities for commercial fishermen early in their careers. This year’s summit focuses on building leadership and networking capacity in the Alaska commercial fishing industry through three days of intensive training. seagrant.uaf.edu

DEC

ASGA Conference

Cape Fox Lodge, Ketchikan: The annual conference of the Alaska Shellfish Growers Association includes technology transfer sessions, shellfish gear demonstrations, a general membership meeting, regulator updates, and panel discussion. alaskashellfish.org

7-9

JANUARY 2018

JAN

35th Annual Health Summit

Hotel Captain Cook, Anchorage: The 2018 summit theme is “Finding Our Way Forward” and the conference focuses on building public health system capacity, health promotion, health protection and security, public health research and evaluation, and emerging issues. alaskapublichealth.org

16-18

JAN

Alaska Marine Science Symposium

Hotel Captain Cook, Anchorage: Scientists, researchers, and students from Alaska, the Pacific Northwest, and beyond come together to communicate research activities in the marine regions of Alaska. amss.nprb.org

22-26 JAN

Junior Achievement of Alaska Awards Banquet

Dena’ina Center, Anchorage: Four new Alaskans will be inducted and recognized with this prestigious award. Attended

Compiled by Tasha Anderson by more than 400 business representatives, the program consists of a networking reception, dinner, and awards ceremony. www.juniorachievement.org/ web/ja-alaska

JAN

25-27

Anchorage AEYC Early Childhood Conference

Hilton Anchorage: The 2018 theme is “Big or Small, Success for ALL: Supporting the Leaders of Tomorrow.” Join other early childhood community members to learn new strategies, hear about the latest research, try out a few practical techniques, and discover new tools and resources to help face any challenge related to working with young children. anchorageaeyc.org

JAN

Alaska RTI Conference

Dena’ina Center, Anchorage: Invited presenters this year include Michael Horn and Heather Staker, authors of Blended; Dr. Doug Fisher and Anita Archer, who will focus on using explicit instruction and lessons from Visible Learning for Literacy; math and RTI experts Dr. Doug Clements and Dr. Karen Karp; and more. More than 1,000 educators from thirtyseven districts attended the conference last year. asdn.org/school-year-conferences-and-institutes

27-28

FEB

12-16

3-9

Alaska Statewide Special Education Conference

Hilton Anchorage Hotel: The Alaska Statewide Special Education Conference (ASSEC) is committed to providing high quality professional development relevant to the cultural, rural, and remote characteristics of Alaska. Join national recognized speakers, as well as knowledgeable local experts for three days of conference workshops and credit courses. assec.org

FEB

7-10

Alaska Optometric Association CE Conference

Centennial Hall, Juneau: The mission of the AKOA is to influence the future of eye care by ensuring the welfare of Alaskans and promoting the continued development of the profession of optometry. akoa.org

Anchorage: This is the 52nd annual conference. aksmc.org

FEB

Alaska Forum on the Environment

FEB

ASTE Annual Conference

FEB

AML Winter Legislative Meeting

Dena’ina Center, Anchorage: The Alaska Forum on the Environment is Alaska’s largest statewide gathering of environmental professionals from government agencies, nonprofit and for-profit businesses, community leaders, Alaskan youth, conservationists, biologists, and community elders. akforum.com

12-16

Hotel Captain Cook, Anchorage: This is the educational technology conference of the Alaska Society for Technology in Education. This years’ theme: Personalize Your Playlist. aste.org

17-20

Juneau: The Alaska Municipal League is a voluntary, nonprofit, nonpartisan, statewide organization of 162 cities, boroughs, and unified municipalities, representing more than 97 percent of Alaska’s residents. akml.org

20-22

MARCH

FEBRUARY

FEB

Alaska Surveying & Mapping Conference

MAR

1-2

Alaska Forest Association Spring Meeting

Baranof Hotel, Juneau: The Alaska Forest Association can be characterized as a high profile industry trade association. Its members hold in common general business interests in the timber industry of Alaska. akforest.org

MAR

8-11

Alaska Library Association Annual Conference

Den’aina Center, Anchorage: AkLA is a nonprofit professional organization for the employees, volunteers, and advocates at academic, public, school, and special libraries of all sizes in Alaska, as well as library products and services vendors. This year’s theme is “Bridging the Gaps.” akla.org R

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Inside

Alaska Business December 2017

ALASKAN BREWING

he limited edition 2017 vintage of Alaskan Brewing Co.’s Alaskan Smoked Porter was released in October, just weeks after the previous year’s vintage brew received a Gold Award for Strong Smoke Beer at the European Beer Star Awards. Smoked beers have gained popularity in the United States over the past several decades, but were virtually unheard of prior to the late ‘80s. First brewed by Alaskan in 1988, Smoked Porter is a pioneer of the American smoked beer movement. Alaskan Smoked Porter is made in limited vintages each autumn and can be aged in the bottle, much like wine. The Smoked Porter is available on draft and in 22-ounce bottles in the twenty states in which Alaskan beer is sold. Alaskan’s Smoked Porter is the most awardwinning beer in the history of the Great American Beer Festival. alaskanbeer.com

ANCHORAGE POLICE DEPARTMENT

he Anchorage Police Department put in place a new crime suppression initiative to address violent crime and drug activity in Anchorage. The plan is composed of three components: 1. The VICE team moved from the Detective Division to the Crime Suppression Division. This move places CAP and VICE under one chain of command for drug investigations. Simplifying this structure means the units will work more closely together and increase efficiency. 2. An APD detective assigned as liaison with the Alaska Information Analysis Center moved to the Crime Suppression Division as a dedicated Task Force Officer. The detective is housed with the APD crime analysis unit to add a layer of intelligence to data exploration. This intel-

Compiled by Tasha Anderson

ligence sharing with law enforcement partners helps APD determine trends, hot spots, and better connects suspects to crime. A detective has also been added to both the Homicide Unit and Robbery/Assault Unit to assist with violent crime investigations. 3. Finally, an Investigative Support Unit is being created to assist detectives and patrol. This unit consists of eight officers and a sergeant who are not tied to calls for service. This enables them to assist detectives serving search warrants, run surveillance, locate witnesses, conduct long term investigations, provide targeted high intensity patrol enforcement, and react to major incidents. This crime suppression initiative took effect in mid-October. muni.org

USACE

he US Army Corps of Engineers–Alaska District published the Operational Draft Regional Guidebook for the Rapid Assessment of Wetlands in the North Slope Region of Alaska. It now is available for use by all permit applicants proposing projects within the Arctic Foothills and Arctic Coastal Plain region. Also known as the North Slope Rapid Assessment, the tool eliminates the need for the region’s permit applicants to develop independent methods for assessing project impacts. The document is designed to be used with the Alaska District’s Credit-Debit Methodology. This system allows applicants to calculate debits from project impacts as well as credits for proposed mitigation. The report uses established approaches to characterize regional wetlands, provides the rationale used to determine assessment scores, describes assessment variables used, outlines the

developed assessment equations, and provides a step-by-step protocol for applying results. The region’s remote nature and short growing season limits the time period during which onsite data can be collected. As a result, the rapid assessment method allows for a tiered approach using offsite remotely gathered data and desktop resources or a combination of onsite and offsite data collection. Onsite data collection may be required at the discretion of the Corps. The North Slope Rapid Assessment is available online. https://erdc-library.erdc.dren.mil/xmlui/ handle/11681/23955

GCI

CI will partner with Rackspace, a global leader in cloud computing services, to create innovative new service offerings to serve Alaska customers and expand into new nationwide markets. “GCI is redefining what it means to be a managed service provider and our relationship with Rackspace will advance our capabilities to get us there,” said Martin Cary, senior vice president and general manager of GCI Business Services. Rackspace’s core competencies include managed cloud services, enterprise application services, including Oracle and SAP ERP, managed security, email hosting, managed databases, eCommerce solutions, and website hosting. The company brings key partnerships with VMware, Amazon Web Services, Microsoft Azure, Google Cloud Platform, and OpenStack Cloud. GCI’s customers now have access to Rackspace’s approximately 3,000 professional cloud engineers to help customers in Alaska and nationwide design, scale, and properly manage cloud environments for maximum effectiveness. gci.com

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December 2017 | Alaska Business

INSIDE ALASKA BUSINESS SEARHC

he Southeast Alaska Regional Health Consortium (SEARHC) Children’s Dental Clinic now provides state-of-the-art laser surgery using the LightScalpel CO2 laser for oral surgery procedures. The laser replaces instruments that bruise or crush tissue causing lengthy, uncomfortable recovery periods, as well as scarring. The FDAapproved, American-made LightScalpel is for soft-tissue surgical procedures like tongue- and lip-tie revisions, gum re-contouring, and biopsies. Its many benefits to SEARHC pediatric patients include little or no bleeding, less postoperative swelling and discomfort, less scarring, a lower risk of infection, shortened procedure times, and a smooth recovery. In fact, nursing mothers are able to breastfeed their baby immediately after the child’s tongue- and lip-tie revision procedure, which illustrates the gentleness of the LightScalpel laser on the most sensitive mouths. Beginning in February 2018 SEARHC will introduce a Diabetes Self-Management Program. The program is available at no cost to all Sitka community members with Type 2 diabetes. Developed by Stanford University, the evidence-based program helps participants deal with diabetes symptoms, including fatigue, pain, and emotional issues. Those who participate in the program receive guidelines about how to eat and sleep better, manage dayto-day activities, and create an action plan. Topics introduced during the program include techniques to deal with the symptoms of diabetes such as fatigue, pain, hyper/hypoglycemia, stress, and emotional issues including depression, anger, fear, and frustration. The workshops also provide exercises for maintaining and improving strength and endurance; healthy eating; the importance of taking medications as prescribed, tools to help keep track of them; and ways to work effectively with healthcare providers. searhc.org

THREE BEARS

hree Bears Alaska announced the grand opening this month of its newest store in Healy. “This is going to be a large and state-of-the-art grocery store and commercial complex that we’re eager to launch,” says Jim Kolb, Three Bears Alaska’s statewide Marketing Director. “The store will be approximately 37,000 square feet in size and we anticipate hiring local residents first and foremost, with about twenty-five staff members

in the winter and forty in the summer, mixed between part-time and full-time positions.” Kolb says the store will be a conventional grocery store with a “warehouse flare.” The new Healy location will also house an Ace Hardware store, a full line of sporting goods (guns, hunting, fishing, camping, apparel, and hunting and fishing licensure), a liquor store with growler bar, pet food, a Shell fuel station, full retail propane, home heating oil, hi-flow diesel pumps for bus and semi-truck rigs, and free delivery in the summer months to local businesses. “Three Bears Alaska’s new Healy store will boost the local economy through employment, sales, and service in a time when Alaska needs sustainable growth,” says Kolb. “We’re proud to be part of growing Alaska’s economy and it’s thanks to our valued customers that we can.” ThreeBearsAlaska.com

QUINTILLION

Image courtesy Quintillion

rews aboard the Alcatel Submarine Networks C/V Ile de Batz have installed the last segment of cable beneath the ocean floor, completing physical installation of the Alaska portion of the international Quintillion Subsea Cable System. The system is on schedule to be in service this month. The Alaska portion will deliver gigabit and higher bandwidth services on a 1,400-mile subsea and terrestrial fiber optic network, including a subsea trunk line from Prudhoe Bay to Nome with branching lines to Utqiaġvik, Wainwright, Point Hope, and Kotzebue. The three phase Quintillion Subsea Cable System is ultimately intended to connect Asia to Western Europe via the southern portion of the Northwest Passage through the Alaska and Canadian Arctic.

The Quintillion system will provide access to high speed broadband capacity for telecommunication service providers at lower wholesale cost and improved quality of service than existing satellite and microwave options. Introduction of high-speed Internet to Quintillion’s markets will enable improved health and education services, help spur economic development, empower local businesses, and allow consumers access to video and other high-speed applications. qexpressnet.com

ASD

he Anchorage School District (ASD) settled a third employment contract. These contracts account for more than 1,775 ASD employees. ASD is a large and progressive public school district with many needs and challenges and, as the state’s largest public school district, is an economic driver in the Municipality of Anchorage. In August, the School Board approved the three-year contract agreement with the Anchorage Principals’ Association, with 134 members, which extends through June 30, 2020. On October 23 the Board approved a new three-year agreement with Public Employees Local 71, AFL-CIO, extending through June 30, 2020. Local 71 has 315 members serving in a variety of custodial positons. A tentative agreement, pending School Board approval, has been reached with TOTEM Association of Education Support Personnel and its 1,294 employees, extending until June 30, 2021. asdk12.org

UAF ARCTIC INNOVATION COMPETITION

he University of Alaska Fairbanks School of Management awarded $30,000 in cash prizes on October 21 after the final round of presentations in the 2017 Arctic Innovation Competition. The competition, now in its ninth year, invites innovators to propose new, feasible, and potentially profitable ideas for solving real-life problems and challenges. The top prize of $10,000 in the main division was awarded to Piper Foster Wilder for 60Hertz Microgrids. The company is developing maintenance management software for microgrids, or small electricity networks, in remote Arctic communities.

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Compiled by ABM Staff With a record number of fifty-five junior division entries from youth ages thirteen to seventeen years—up from only five submissions last year—the competition was fierce. Travis Brase took home the first prize of $1,000 for his idea, the Water Tank Depth Sensor, an ultrasonic sensor that uses sound waves to measure the amount of water in a holding tank. In the cub division for youth ages twelve and under, Erin Wallace won first place and $500 for her idea, Easy Voter, a handheld device that allows US citizens to vote from any location on Election Day. arcticinno.com

AKDOL

laska Labor Commissioner Heidi Drygas and US Department of Labor Office of Apprenticeship Alaska Director John Hakala joined Alaska Native Tribal Health Consortium (ANTHC) CEO Roald Helgesen to sign standards of apprenticeship for the behavioral health aide (BHA) occupation. ANTHC, the State of Alaska, and the US Department of Labor worked together for two years to build the curriculum and coordinate with regional Tribal health providers to establish this new registered apprenticeship. The BHA apprenticeship combines on-the-job learning with classroom instruction. Experienced mentors will work with the apprentices. ANTHC designed BHA-specific curriculum and learning materials and will continue to provide training support and coordination for tribal health organizations participating in the program. The Alaska Department of Labor and Workforce Development supported development of the apprenticeship with funding from the American Apprenticeship Initiative of the US Department of Labor. Over the past year, Alaska employers created approximately 200 new apprenticeships, including in the healthcare, aviation, and maritime sectors. labor.state.ak.us

KETCHIKAN READY-MIX & QUARRY

he US Forest Service nominated, and the USDA selected, Ketchikan Ready-Mix & Quarry (KRMQ) as the USDA HUBZone Contractor of the Year for 2017. The USDA award program celebrates the accomplishments of small businesses, individuals, and groups. The program encourages economic development in

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historically utilized business zones—of which Ketchikan is one. Located in Ketchikan, KRMQ is owned by the Enright family and has been in the business of performing construction, concrete, and gravel services in Southeast Alaska since 1994. Among other active contracts, KRMQ is currently working on a Forest Service project to replace or relocate nine bridges along with other road maintenance on the Hoonah Road system.

METAL SUPERMARKETS

etal Supermarkets opened its 88th store in late fall in Anchorage. At Metal Supermarkets Anchorage customers have access to any size, shape, or grade of metal, cut to size and with no minimum order quantity. Metal Supermarkets Anchorage serves a wide variety of businesses and customers across the state including tool and die shops, manufacturers, machinists, maintenance managers, fabricators, machine shops, contractors, construction companies, fisheries, military, healthcare, education, and other government departments, as well as hobbyists and home owners. Metal Supermarkets stores stock a diverse selection of metal types including hot-rolled steel, cold-rolled steel, stainless steel, and aluminum in a wide variety of shapes including bar, tube, sheet, plate, and more. The new store also offers value-added services such as production sawcutting, shearing, and same-day delivery. Metal Supermarkets Anchorage is owned and operated by franchisee and Anchorage resident Terry Fisher. metalsupermarkets.com/anchorage/

UNIVERSITY OF ALASKA

he University of Alaska launched Career Coach, a web-based tool to help Alaskans explore career and higher education opportunities. Developed in cooperation with Emsi, users are able to easily browse current Alaska job postings, learn about workforce training and educational opportunities, and access current Alaska labor market and wage data using simple online tools. Career Coach is designed to be used by individuals at varying career stages, from high school students to adults looking to begin a new career. The university plans to train campus career services employees to assist students with Ca-

reer Coach and collaborate with the Alaska Department of Labor & Workforce Development, K-12 school districts, libraries, and other organizations to promote Career Coach throughout the state. alaska.emsicc.com

COEUR MINING

oeur Mining announced in its Third Quarter 2017 Financial Results that initial development ore was mined from the Julian deposit during the quarter, “marking an important milestone following two years of underground development.” During Q3 of 2017, a total of 172,038 tons of material was milled at Kensington Mine and 27,541 ounces of gold was produced. coeur.com

ALASKA SEA GRANT

laska Sea Grant has received funding to help marine aquaculture businesses in the state find good locations, obtain geoduck seeds, and avoid shutdowns after heavy rains. The three Alaska projects received about $400,000. Alaska Sea Grant, a partnership between NOAA and the University of Alaska Fairbanks College of Fisheries and Ocean Sciences, will award the funding to three nonprofit organizations to conduct the research. The Alaska Fisheries Development Foundation will develop a geographic information system tool to help investors identify appropriate mariculture sites in Alaska, using methods developed in Maine. The grant provides about $140,000. OceansAlaska, with $150,000, will develop geoduck seeds for farmers, who are constrained by inconsistent supply. The project aims to improve geoduck spawning and increase knowledge of hatchery procedures. Pacific Shellfish Institute, with $95,000, will study the relationship between rainfall and water quality in remote areas. Heavy rain can wash coliform bacteria into the ocean near shellfish growing operations, prompting closures. However, shellfish grow several feet underwater, where coliform concentrations may be lower. Since 1988 when Alaska lawmakers gave their approval, the industry has grown from a single farmer to some sixty-five aquatic farms, seven shellfish nurseries, and two shellfish hatcheries. alaskaseagrant.org R

December 2017 | Alaska Business

RIGHT MOVES First National Bank Alaska

First National Bank Alaska appointed five Alaskans to new branch manager roles. All five banking experts are responsible for consumer loans, branch operations, customer service, and business development. Julie Aloysius returns to First National more than twenty years after starting her career as a teller at the bank. She was appointed Branch Manager at the Dimond Branch in South Anchorage. Aloysius has worked in the financial industry for twentyseven years. Five years into his banking career, Ryan Bargelski was appointed Branch Manager at the North Star Branch on Joint Base Elmendorf-Richardson. He’s worked for First National as a teller, branch support representative, and operations supervisor. Jason Brown takes over at the Kuskokwim Branch in Bethel. His connection to rural Alaska runs deep. Growing up, he lived all around the state while his father worked as a banker in various Alaska communities. Almost three years after helping open the bank’s U-Med Branch, Kippy Lane will now manage the South Center Branch in midtown Anchorage. She has worked for the bank for more than twenty-six years, including time in Anchorage, Bethel, and Kenai. With more than nine years of banking experience, Danielle Nicklos made the move to the Muldoon Branch from the North Star Branch. Nicklos previously worked as a teller, customer service representative, personal banker, and operations supervisor.

long service to the program as volunteer, mentor, and board member lends an understanding that will help the entrepreneurial program to thrive and grow.

Anchorage District Court

Aloysius

Bargelski

Brown

Governor Bill Walker announced two new appointments to the Anchorage District Court, Michael Franciosi and Kari McCrea. Franciosi currently serves as Glennallen magistrate judge and superior court master, where he has provided coverage for Valdez, Cordova, and other areas in the Third Judicial District since 2014. Prior to that, he was in a private general Franciosi practice for twenty-three years, which included both criminal and civil law. Franciosi graduated from Creighton University School of Law in 1991. McCrea has practiced law for more than fifteen years and currently serves as a Magistrate Judge/Standing Master in Anchorage Superior Court. She graduated from Mitchell Hamline School of Law in 2001 and clerked for US District Court Magistrate Judge John M. Mason before taking a position McCrea with the Minnesota State Board of Public Defense. Prior to her current position, McCrea worked for nine years as a trial lawyer with the Alaska Public Defender Agency in Bethel, where she also served as a supervising attorney.

Ravn

Lane

Nicklos

Alaska Business Week

Alaska Business Week selected Andy Rogers as the program’s Executive Director. Rogers is a lifelong Alaska entrepreneur. He founded the Anchorage-based technology firm PangoMedia. Today, he and his wife Zuzana are co-owners of Advanced Physical Therapy with clinics in many Alaska communities. Rogers served on the Alaska Chamber Board of Directors when ABW was created. His

Ravn Air Group reorganized its senior management team. Steve Jackson, Chief Financial Officer, is a licensed CPA with extensive experience in the aviation industry and has held CFO roles at four different airlines including Mesa Air Group, Reno Air, Hawaiian Jackson Airlines, and ERA Aviation, which later became a part of Ravn. George Snyder, Acting Chief Operating Officer & Executive Vice President of Safety, is a highly experienced airline pilot and airline safety executive who worked for US Airways, Korean Airlines, and a number of other airlines around the world. His Snyder specialties in the airline industry are in operations, safety, quality assurance, and regulatory compliance. Prior to joining Ravn, Snyder was Chairman

and CEO of the GHS Aviation Group, one of only seven IATA accredited airline safety auditing teams in the world. Len Sloper, Senior Vice President of Airports, Cargo, and Real Estate, grew up in Juneau and brings to Ravn more than twenty-five years of aviation operations experience and has worked for major carriers and airports such as Alaska Airlines, Virgin America, and Fiji Airways. Before leaving Alaska Airlines, Sloper Sloper was the general manager of its Los Angeles station, the company’s second largest operation. George Nichols, Chief Information Officer, has nearly thirty years’ experience in information technology, infrastructure, and operations, the last ten of which were at companies such as American Airlines, Envoy, Brinks, Cadbury Schwepps, and, Nichols most recently, as vice president of Information Technology at Hawaii Island Air, the whollyowned airline of Larry Ellison, founder of Oracle. Wendy Yow, Vice President of Human Resources, is a seven-year veteran of Ravn. Yow has more than twenty years of experience as an HR professional at different companies in Alaska. She earned both a bachelor’s degree and an MBA with a focus in HR Yow management. She also has CHRM and CELS certifications.

Alaska Mental Health Trust Authority

The Alaska Mental Health Trust Authority named Mike Abbott as CEO. Abbott is a long-time Alaskan with a distinguished public service career. Abbott will oversee both the Trust Land Office and the Mental Health Trust Authority office in his role as CEO.

Office of the Governor

Governor Bill Walker appointed Leslie Ridle as Commissioner of the Department of Administration. Ridle previously served as the department’s Deputy Commissioner and has been Acting Commissioner since former Commissioner Sheldon Fisher transitioned to the Department of Revenue. Ridle is a lifelong Alaskan who grew up in Douglas and Anchorage. Her professional background includes teaching, as well as government service in Anchorage, Washington, DC, and Juneau.

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Compiled by Tasha Anderson Walker appointed outgoing Kenai Peninsula Borough Mayor Mike Navarre as the Commissioner of the Department of Commerce, Community, and Economic Development; he will start at DCCED when his current term as mayor ends in November. Navarre has more than thirty years of business experience in restaurant and retail operations throughout Alaska. He holds a bachelor’s degree in government with a minor in economics from Eastern Washington University.

Municipality of Anchorage

Mayor Ethan Berkowitz announced that William (Bill) D. Falsey became Municipal Manager for the Municipality of Anchorage on November 1. A long-time Alaskan, Falsey is a graduate of Dimond High School, Stanford University, and Yale University Law School. He most recently served as Municipal Attorney. Prior to that appointment, Falsey was a partner at Sedor, Wendlandt, Evans & Filippi, served as principal at FOXKISER, and was the deputy Chief of Staff for the Bureau of Land Management, US Department of the Interior. Berkowitz also announced Becky Windt Pearson accepted the position of Municipal Attorney for the Municipality of Anchorage. Most recently, Windt Pearson worked as corporate and land use counsel for GCI. Windt Pearson previously worked as a teacher, travel writer, and on local planning and land use issues. She earned her AB in sociology from Harvard University and her JD from Yale Law School. Attorney General Jahna Lindemuth appointed Richard Allen to the position of Anchorage District Attorney. Allen began his career in Alaska as an assistant district attorney for the Palmer District Attorney’s Office in 2004. He spent seven years prosecuting serious, violent cases in the Matanuska-Susitna valley. In 2011, Allen was appointed to director of the Office of Public Advocacy within the Department of Administration, where he oversaw fifteen sections covering elder fraud prosecution, child protection representation, public guardianship, and criminal defense.

Pebble Partnership

The Pebble Partnership announced that Stephen Hodgson will join the project as Senior Vice President of Engineering & Project Director and James Fueg will join the project as Vice President of Permitting. Hodgson is a professional engineer with more than forty years of experience in consulting, project management, feasibility-level design and Hodgson

implementation, and mine operations at some of the most significant mineral development projects in the world—including the Pine Point zinc mine in northern Canada, the Red Dog zinc mine in Alaska, Antamina in Peru, and the Oyu Tolgoi project in Mongolia. Fueg is a geologist and a geophysicist with more than twenty-five years of experience in mineral exploration and resource development, including more than twenty years working in Alaska. He was most recently seconded from Barrick Gold Corporation to serve as technical services manager for the Donlin Gold Project in western Alaska, where he played a leadership role managing the EIS and NEPA permitting process for a project expected to receive a final Record of Decision in 2018.

Manley & Brautigam

Manley & Brautigam announced that F. Steven Mahoney became a shareholder in early 2017. An attorney since 1986 and with the Manley & Brautigam firm Of Counsel for the past ten years, Mahoney holds an accounting degree and is a certified public accountant. His practice focuses on income tax Mahoney and property tax controversy resolution, nonprofit law, entity formation/governance, limited liability companies, partnerships, and corporations.

Denali Home Loans

Kimberly A. Zeren joined Denali Federal Credit Union’s Home Loans department as a Senior Mortgage Loan Originator responsible for guiding her clients through the transaction, from prequalification to the close of sale. Zeren has been in the mortgage field Zeren for more than twenty-five years, part of that time at Wells Fargo Mortgage as well as operating her own mortgage business in Scottsdale, Arizona, for ten years. Denali Home Loans promoted Jeffrey Hase to Production Manager after serving as senior mortgage loan originator since 2009. In this new position, Hase oversees all MLO origination as well as processing. Hase will continue to originate loans while Hase also filling the Production Manager position. Hase has been a mortgage loan originator in Alaska since 2003. He previously worked for retail, correspondent, and wholesale lending with other lenders,

including Liberty Financial Group, Countrywide, and Bank of America. Aileen Dimmick joined the Denali Home Loans staff as a Senior Mortgage Loan Originator. Dimmick is responsible for guiding her clients through the transaction, from prequalification to the close of sale. Prior to Dimmick’s employment with Denali, she worked Dimmick in Residential Mortgage as a mortgage loan originator and a loan processor. She also worked for Alaska USA’s mortgage department as an originator assistant. In total, Dimmick has fifteen years in the mortgage lending industry.

Alutiiq Museum

The Alutiiq Museum promoted Lauren McCausland to the position of Project Specialist. Her duties include managing the museum’s traveling educational boxes, assisting with the development of publications, and supporting Alutiiq language documentation projects. McCausland is pursuing a bachelor’s degree in elementary education at Kodiak College.

McCausland

Ahtna

Ahtna Inc. promoted Timothy F. Gould, PE, to President of subsidiary Ahtna Engineering Services. Gould served as vice president of Ahtna Engineering Services and Ahtna Environmental Inc. since 2014. Gould’s experience spans twenty-seven years in the consulting Gould and construction markets with responsibilities nationwide and in the Pacific region. He earned a master’s degree in civil engineering from the University of Maine and a bachelor’s degree in chemistry from the University of Alaska Fairbanks.

Northrim BanCorp

Northrim BanCorp, Inc. announced that Joe Beedle is retiring from his position as Chairman of the Board of Northrim Bank and Northrim BanCorp, Inc. effective January 2, 2018, and will be succeeded by Joe Schierhorn as Chairman of the Board and the bank and the company. Life-long Alaskan Schierhorn Schierhorn has been with Northrim since 1990. R

Nail guns. Air compressors. Generators. Whatever you need, we deliver. Connect with us / 800.727.2141 / www.nac.aero /

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December 2017 | Alaska Business

ALASKA TRENDS

Alaska Vital Statistics 2016 Annual Report

s its many wanderers, explorers, travelers, homesteaders, and entrepreneurs know, Alaska is the ideal location for individuals and families who want to make their own way in the world. The state has a diverse, distinctive population. Boasting more than 586,400 square miles of land and a 2016 state population of about 740,000, or 1.3 people per square mile, Alaska is ideal for those in search of some space between themselves and their neighbors. Though city dwellers can

2016 Births

certainly get their fill of art, culture, fine dining, and a multitude of business opportunities in the state’s metropolitan areas including Anchorage, Fairbanks, and Juneau, those looking to raise their families away from the hustle and bustle city life have nearly endless choices when it comes to where and how to live in Alaska. The Alaska Vital Statistics 2016 Annual Report released this fall by the Alaska Division of Public Health offers an inside look at the diverse population that calls Alaska home.

2016 Marriages/Separations/Divorces

• Alaska mothers gave birth to 11,213 babies.

• There were 5,272 marriages in Alaska in 2016, including approximately 81 same-sex marriages.

• The month of June had the most births (982), while February had the fewest (840).

• The month of June had the most marriages at 731.

• The median age of mothers was 28 years and the median age of fathers was 30 years.

• There were 2,942 separations in Alaska, including 1,579 divorces in 2016.

• The median age at marriage was 28 years for women and 30 years for men. • The median age at separation was 36 for women and 38 for men.

• The youngest mother was 13 years old, and the youngest father was 14 years old. • The oldest mother was 51 years old and the oldest father was 73 years old. • Emma was the most popular girl’s name and William was the most popular boy’s name.

2016 Adoptions • There were 570 adoptions recorded in Alaska. • 421 adoptions took place through the Alaska state court system. • 23 adoptions took place through the Alaska Native tribal court system. • The median age at adoption was 4 years old.

Data courtesy of State of Alaska Department of Health and Social Services http://dhss.alaska.gov/dph/VitalStats/Documents/PDFs/VitalStatistics_AnnualReport_2016.pdf

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Compiled by Alaska Business Staff

nother report, released in late fall by the Annie E. Casey Foundation, found similar results to those compiled by the Alaska Division of Public Health.

The 2017 Race for Results: Building a Path to Opportunity for All Children reports

ANS Crude Oil Production 10/31/2017 05/01/2015 01/01/2014 09/01/2012 05/01/2011

Approximately 12,000 babies are born in Alaska each year. Babies born at normal birthweight start life with one foot forward and 94 percent of Alaska’s babies are born at normal birthweight, exceeding the national average of 92 percent. Alaska’s healthy birth rates are shared across the racial and ethnic continuum.

Ninety-five percent of women between the ages of 15–19 years delay pregnancy until adulthood.

The majority of Alaska’s children, 92 percent, live in a household with at least one adult with a high school degree. Alaska’s overall rate is above the national average of 86 percent. However, when broken down by race and ethnicity, only 69 percent of Asian and Pacific Islander children live in such households.

EARLY CHILDHOOD Early childhood development is key to a child’s success in life. Only 51 percent of Alaska’s children between the ages of 3-5 years are enrolled in nursery school, preschool, or kindergarten. Alaska Native/ American Indians are the only group that exceeds the national average of 60 percent by having 64 percent of their children in formal early childhood development programs. All fourth graders in Alaska are struggling to read on grade-level, according to the report. Only 42 percent of white fourth graders are proficient readers and the rates decline from there. Twenty eight percent of Latino, 25 percent of African American, 23 percent of Asian Pacific Islanders, and 11 percent of Alaska Native/American Indians could read proficiently in 2015. Seventy-eight percent of white children live in families with incomes more than 200 percent of the federal poverty level, whereas 47 percent of African-American and Alaska Native/American Indian, 51 percent of Asian and Pacific Islanders, and 66 percent of Hispanic/Latino children fall into that same category. High school graduation rates show some of the greatest disparities between the different races. Asian/ Pacific Islanders (83 percent) and White (80 percent) are closest to the national average of 83 percent. Alaska Native (64 percent), African-American (71 percent), Hispanic (72 percent) all fall below the national average.

01/01/2010 09/01/2008 05/01/2007 01/01/2006

ANS Production per barrel per day 546,306 Oct. 31, 2017

09/01/2004 05/01/2003 01/01/2002 09/01/2000

0 400,000 800,000 1,200,000 SOURCE: Alaska Department of Revenue Tax Division

ANS West Coast Crude Oil Prices 10/31/2017 09/01/2014 09/01/2012 09/01/2010 09/01/2008 09/01/2006

ANS West Coast $ per barrel $61.13 Oct. 31, 2017

09/01/2004 09/01/2002 09/01/2000 $0

$20

$40

$60

$80 $100 $120 $140 $160

SOURCE: Alaska Department of Revenue Tax Division

Statewide Employment Figures 10/1976—9/2017 Seasonally Adjusted 09/01/2017 11/01/2012 01/01/2010 03/01/2007 05/01/2004 07/01/2001 09/01/1998

Labor Force 364,007 Sept. 2017 Employment 337,765 Sept. 2017 Unemployment 7.2% Sept. 2017

11/01/1995 01/01/1993 03/01/1990 05/01/1987 07/01/1984 09/01/1981 11/01/1978 01/01/1976

Data courtesy of The Annie E. Casey Foundation and Alaska Children’s Trust. More information can be found at www.aecf.org/raceforresults. Additional information is available at www.aecf.org/

0 100,000 200,000 300,000 400,000 SOURCE: Alaska Department of Labor and Workforce Development, Research & Analysis Section; and US BLS

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December 2017 | Alaska Business

ADVERTISERS INDEX Advanced Dental Solutions..............................................32 Advanced Physical Therapy of Alaska.........................24 Alaska Center For Dermatology.....................................24 Alaska Communications (ACS)...........................................3 Alaska Mergers & Acquisitions LLC...............................20 Alaska USA Federal Credit Union....................................19 ALSCO........................................................................................25 American Heart Assoc........................................................ 35 American Marine / Penco.......................................88, 89 AMS Couriers...........................................................................31 AS&G / Dimond Fabricators..............................................37 Arctic Chiropractic................................................................81 AT&T............................................................................................45 Avis Rent-A-Car.....................................................................80 C & R Pipe and Steel Inc....................................................43 Calista Corp..............................................................................18 Carlile Transportation Systems.............................21, 33 CIRI..............................................................................................82 Conrad-Houston Insurance Agency............................20 Construction Machinery Industrial (CMI)......................2

Cornerstone Advisors..........................................................17 Delta Leasing LLC.................................................................39 Doyon Limited.........................................................................51 Enviromental Contracting Solutions...........................40 Fairbanks Memorial Hospital...........................................30 First National Bank Alaska....................................................5 GCI...............................................................................................92 Great Originals Inc...............................................................32 Historic Anchorage Hotel................................................. 79 Insurance Brokers of Alaska............................................56 Judy Patrick Photography................................................90 LONG Building Technologies...........................................37 Lynden Inc...............................................................................65 Matson Inc................................................................................73 Medical Park Family Care Inc..........................................29 Microcom..................................................................................77 N C Machinery.......................................................................49 Nana Regional Corp.............................................................13 New Horizons Telecom Inc.............................................. 53 Nortech Environmental & Engineering......................46

North Star Behavioral Health..........................................29 Northern Air Cargo.....................................................86, 87 Oomingmak Musk Ox Producers Coop...................... 79 Pacific Pile & Marine.........................................83, 84, 85 Parker Smith & Feek.............................................................23 PenAir..........................................................................................71 Petrotechnical Resources Alaska (PRA)......................64 Providence Health & Services Alaska...........................27 Quality Asphalt Paving (QAP)..........................................46 Quintillion Networks...........................................................75 Ravn Alaska..............................................................................57 Stellar Designs Inc.................................................................81 T. Rowe Price...........................................................................15 UA Local 367 Plumbers & Steamfitters........................41 United Way of Anchorage.....................................................9 Vera Whole Health...............................................................26 Washington Crane & Hoist...............................................69 Wells Fargo Bank Alaska.....................................................91 World Trade Center Anchorage..................................... 55

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