Alaska Business July 2019 by Alaska Business

FOURTH ANNUAL BEST OF ALASKA BUSINESS AWARDS

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CONTENTS JULY 2019 | VOLUME 35 | NUMBER 7 | AKBIZMAG.COM

BEST OF ALASKA BUSINESS SPECIAL SECTION 40 Video Production Company 42 Information Technology Provider 44 Office Furniture Store

54 Business Lunch 55 Brewery 56 Sushi Spot 58 Coffee Shop 59 Grocery Store

46 Commercial Real Estate Firm

60 Gym

48 Hospital

61 Hair Salon

50 Health Clinic

62 Fundraising Endeavor

52 Florist

64 Corporate Citizen

53 Catering/Delivery

ABOUT THE COVER 28 Welcome to the 2019 Best of Alaska Business Awards 29 Place to Work 1-250 Employees 30 Place to Work 250+ Employees

32 H otel for Coporate Travel 34 Air Charter Service 36 Event Venue 38 Swag Supplier

It’s awesome, right? Jontue Hollingsworth, owner of Hollingsworth Design Co., took our less-than-stellar “something about business and Alaska” direction and delivered exactly the cover that we wanted—but didn’t know how to ask for. The organizations we celebrate in our annual Best of Alaska Business special section know how to keep an eye on both tradition and technology; when to be bold and when to wait it out; and how to always be true to themselves while learning from those around them. They are a moose in flannel, with an ear gauge, sporting a knit cap (we can only assume was) made by his grandmother. To all our winners: be you. We like it. Cover Art by Jontue Hollingsworth

FE AT UR E S 8 RETAIL

18 I NSURANCE

66 EDUCATION

78 ENVIRONMENTAL

How four boutiques sell Alaskan style

Insurance and risk management best practices

Businesses supporting education

Reclamation facilities turn contaminated soil into clean material

‘Hustlin’ My Hoodies’ By Cheyenne Mathews

Risky Business

Those Who Can Do Teach By Vanessa Orr

By Tracy Barbour

12 TELECOM & TECH The Internet of Things

Simplifying life by connecting devices, people, and businesses By Tracy Barbour

Cooking Dirt By Vanessa Orr

72 OIL & GAS

22 HEALTHCARE Pros and CON

The ins and outs of the Certificate of Need program By Isaac Stone Simonelli

Oil & Gas Legislative Update Federal policies in the spotlight in 2019 By Tasha Anderson

84 ENERGY

Energy Efficiencies Combat Costs The surprising ways businesses can reduce energy consumption By Isaac Stone Simonelli

DEPARTMENTS 6 FROM THE EDITOR 87 EAT, SHOP, PLAY, STAY 4 | July 2019

88 EVENTS CALENDAR

90 INSIDE ALASKA BUSINESS

89 BUSINESS EVENTS

92 R IGHT MOVES

94 OFF THE CUFF 96 ALASKA TRENDS

Alaska Business www.akbizmag.com

FROM THE EDITOR

The Best of the Best

Published by Alaska Business Publishing Co. Anchorage, Alaska

EDITORIAL STAFF Managing Editor

Kathryn Mackenzie 257-2907 editor@akbizmag.com Associate/Web Editor

Tasha Anderson 257-2902 tanderson@akbizmag.com Digital and Social Media Specialist

Arie Henry 257-2906 ahenry@akbizmag.com Art Director

t’s hard to believe that we’re finally presenting the fourth annual Best of Alaska Business Awards. After months (and months) of planning, promoting, data collection, analyzing survey results, and so much more… it’s finally here. What could be better? It’s summer, it’s sunny, and we get to celebrate by honoring your favorite Alaska businesses in this month’s special section and in less than two weeks on the rooftop of 49th State Brewing Co. We hope you’re as excited as we are about the many new companies you’ll see this year, as well as the companies you’ve chosen year after year as best in their field. And while the Best of Alaska Business Awards have taken a lot of our time and attention over the past year, this issue contains a number of articles we’re just as enthusiastic about. We shine a spotlight on small business with a flair for art in this month’s retail-focused article Hustlin’ My Hoodies that features the work of four local boutiques created and operated by artists with a passion for the Alaska lifestyle. Each business owner offers aspiring entrepreneurs insight into how to get started, which organizations can and will help with planning and funding, and how to overcome some of the most common problems related to starting up your own company. On another note, have you heard of the Internet of Things (IoT)? Probably. But if you haven’t, we break it down in the aptly named The Internet of Things. Oftentimes when we think of smart devices and their many uses, those uses have to do with making our personal lives easier or safer: a personal assistant to remind us of upcoming appointments; a home security system that alerts a smart phone when someone approaches the door; and even devices that keep us apprised of when our loved ones take their medication and alert us if they miss a dose or take too much. But the world of interconnected devices is far bigger than our personal lives, and Tracy Barbour does an excellent job of explaining the ways IoT is being used to create efficiencies, cut costs, and save time in a variety of industries, including oil and gas and healthcare. The July issue of Alaska Business is near and dear to our hearts because we get to show our love of Alaska’s business community throughout the month in a number of ways. Starting with our cover, which each year features a local artist doing what he or she does best, throughout the special section in which we have the opportunity to celebrate your favorite businesses, and culminating in the party of the summer (if we do say so ourselves)—whether you’re a Best of Alaska Business winner, a voter, or both—this month is all about you. 6 | July 2019

VOLUME 35, #7

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 Senior Account Manager

Janis J. Plume

Kathryn Mackenzie Managing Editor, Alaska Business

257-2917 janis@akbizmag.com Advertising Account Manager

Christine Merki 257-2911 cmerki@akbizmag.com Accounting Manager

Ana Lavagnino

The July issue of Alaska Business is near and

257-2901 accounts@akbizmag.com Customer Service Representative

Emily Olsen 257-2914 emily@akbizmag.com

dear to our hearts

501 W. Northern Lights Boulevard,Suite 100 Anchorage, Alaska 99503-2577 Toll Free: 1-800-770-4373 (907) 276-4373 www.akbizmag.com Press releases: press@akbizmag.com

because we get to show

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our love of Alaska’s business community throughout the month in a number of ways.

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; © 2019 Alaska Business Publishing Co. All rights reserved. No part of this publication may be reproduced without written permission from the publisher. Alaska Business accepts no responsibility for unsolicited materials; they will not be returned unless accompanied by a stamped, self addressed envelope. One-year subscription is $39.95 and includes twelve issues (print + digital) and the annual Power List. Single issues of the Power List are $15 each. Single issues of Alaska Business are $4.99 each; $5.99 for the July & October issues. Send subscription orders and address changes to circulation@akbizmag.com. To order back issues ($9.99 each including postage) visit simplecirc.com/back_issues/ alaska-business. AKBusinessMonth AKBusinessMonth alaska-business-monthly

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R E TA I L

Salmon Sisters co-creators Claire Neaton and Emma Laukitis were inspired to start a company that reflects their experiences as commercial fisherwomen. Emma Laukitis © Carmin Dengel

‘Hustlin’ My Hoodies’

How four boutiques sell Alaskan style

By Cheyenne Mathews

8 | July 2019

laska boutiques have found a fashion niche using images of local flora and fauna to convey the spirit of the state. The summer season is one of the busiest times of year for local boutiques as their style captivates both locals and the surge of tourists looking for that local experience. Alaska Business spoke with four Alaskan artisans who are taking their incredible talent and combining

it with savvy business sense in a way that adds to the local economy and gives tourists and residents alike the opportunity to buy amazing—wearable—works of art.

The Boutiques Sina Sena is the creative genius behind the designs of Crab Terror Island, which has one brick-and-mortar store in Anchorage and a strong online

Alaska Business www.akbizmag.com

“I knew I wanted to start creating collections beyond what I was already creating at AK Starfish—and what I created, I really wanted to celebrate women and the ocean.” —Marci Nelson Owner, AK Starfish Co.

presence. In establishing her business, Sena has created a community of “islanders” who both enjoy and help bolster the experience of her store. “‘Island’ means community to me, and I really focus my business on building that community,” Sena says. Sena’s inspiration for the name of her boutique stems from her childhood experience growing up in Dutch Harbor, where her mom ran the local television and radio station Channel 8, which often broadcast locallyproduced movies. “The community would get together and make these soap operas or little movies and one of them was called Crab Terror, about this giant crab that was sinking the boats in the harbor,” Sena says. “And I thought, gosh how fun, we’ll put a crab on a shirt and call it Crab Terror.” Marci Nelson’s first career was as an English teacher at Dimond High School, but after eighteen years there she decided to devote her time to her passion for art, founding AK Starfish Co., one of the larger boutiques in Alaska with six stores located from Anchorage to Homer. After twelve years of success with AK Starfish Co., Nelson founded Mermaid Co. Boutique. “I knew I wanted to start creating collections beyond what I was already creating at AK Starfish—and what I created, I really wanted to celebrate women and the ocean,” Nelson says. While the two began as separate boutiques, they are now merged under one LLC and oftentimes share the same space. Also operating as a pair, Salmon Sisters co-founders Claire Neaton and Emma Laukitis opened an Etsy shop for Salmon Sisters in 2012. Both women split their time between Salmon Sisters and commercial fishing. It is that immersion in the world of fisherwomen that inspires their designs. www.akbizmag.com

“[Our style is] Alaskan, which means practical, comfortable, durable, strong— yet feminine and delightful,” Laukitis says. “We focus on products that hold up well over time, in the elements, and can be worn in, worn out, worked in, moved in, and made better with time.” Salmon Sisters has three seasonal brick-and-mortar locations that are managed by an all-women team while Laukitis and Neaton spend their summers fishing. Shara Dorris moved to Alaska in 2003 and is the owner and artist of Octopus Ink, which she founded while she was in college as a way to cover tuition. “The fashion of Octopus Ink is strongly rooted in eco-friendly and sustainable materials,” Dorris says. “I feel good about the products that I sell and I want my customers to feel good about what they buy from me.”

Making it to Market Sena calls it a hustle, and Nelson calls it hard work. But for both boutique owners, making it to summer markets was the foundation that eventually allowed them to invest in brick-and-mortar locations. “I worked all the time—I have three kids, I’m married—but every weekend I would be down at one of the markets during the summer, as I say, ‘hustlin’ my hoodies,’” Sena explains. AK Starfish Co. also got its start in a ten-by-ten-foot tent at weekend markets; over fourteen years what started as one tent turned into four tents and has now become a successful multi-city business. Along the way, AK Starfish Co. found some success making house calls and holding chocolate parties, where people would schedule a time to come to Nelson’s home to shop before she had a storefront. While Dorris was in college, she would sell her clothes at summer and winter Alaska Business

markets. She saved her profits from market sales to purchase a storefront for Octopus Ink in 2009 in Anchorage, which is now open year-round. Even with Alaska’s small population, Sena says there’s a market for every designer interested in joining the ranks of Alaskan boutique owners. “Anybody right now that’s kind of struggling… there’s plenty of business out there,” Sena says. “There are billions of people. You just have to know your market and you have to be prepared to put in the time and the energy and the money it’s going to take to find those people to buy from you.”

Networks and Mentors Finding the right market—especially for artisan-created products—requires building relationships with the community. Nelson’s history as a thirdgeneration Alaskan and her career as a teacher gave her a solid background to start a business, but her relationship building didn’t end there. “I think service is so huge, and I think that I built my business with relationships in teaching,” Nelson says. “I already had a connection to so many people, and it was a connection that wasn’t even business related, it was about service.” AK Starfish Co. was able to weather the 2008 recession and other economic downturns in the state due in part, Nelson says, to the loyalty of Alaskans to local companies. Even after the November 30 earthquake, Nelson picked up dented Hydroflasks, swept glass from the floor,

“We focus on products that hold up well over time, in the elements, and can be worn in, worn out, worked in, moved in, and made better with time.” —Emma Laukitis Co-owner, Salmon Sisters

July 2019 | 9

Crab Terror Island founder Sina Sena stands in front of her store, named for a locally-produced soap opera based in Dutch Harbor.

“There are billions of people. You just have

Sina Sena

to know your market and you have to be prepared to put in the time and the energy and the money it’s going to take to find those people to buy from you.” —Sina Sena Owner Crab Island Terror

and was open for business the next day: “The entire community, it felt, turned out,” Nelson says. “We were slammed. We had standing room only in the store and people pouring in to come and purchase things and offer their support.” The success of Octopus Ink’s brick and mortar store is impacted by the health of downtown Anchorage, so establishing a clientele that continues to visit the area is essential to Dorris’ business. “The decline in locals visiting our downtown area, combined with the closing or relocation of many neighboring small businesses, has changed the landscape in the past few years,” Dorris says. “Luckily, we have cultivated relationships with customers around the world, giving us the opportunity to use

our online presence to balance out the changes we are feeling in Alaska.” Other professional relationships are also critical for small business owners. Sena attributes her success in forming Crab Terror Island to finding a mentor who could help her with the basics of business. The Alaska Small Business Administration offers tools and classes for boutique owners that speak to particular problems they are facing. Salmon Sisters reached out to the Alaska Small Business Development Center in 2018 for resources and advice on managing cash flow, inventory, and organizational structure. “Use resources in your community to build a business plan; use free resources available to you through your

e-commerce platform [and] email marketing; and use them during your day to day operations,” Laukitis says. “We’ve used AK Small Business Development Center, Shopify, and MailChimp.”

For Women, by Women These and other local boutiques are run by women, many of whom have found ways to support other emerging female artists. Nelson likes to represent women in her newest collections for Mermaid Co. Boutique, and many of the eightysix other artists featured in her stores are female. Sena’s clientele is women in their thirties to fifties, and she says they like to see female-forward comradery in the community.

“Money can quickly become a major stress… If you budget well and have money set aside to cover the unexpected expenses and slow times, you can minimize the stress when it comes up.” —Shara Dorris Owner, Octopus Ink

10 | July 2019

Alaska Business www.akbizmag.com

“One of the reasons I really started a business is because I was always known as: I was a wife, I was a mom, I was an employee,” Sena says. “And when I was a little girl, I was an artist. I had all these hopes and dreams—and not that I didn’t like the direction my life was going, I love my family—but I wanted something that was kind of just for me.” Each of these boutique owners began as artists with a passion for Alaska design and found ways to turn that passion into a career. Nelson says she has always let her philosophy guide her choices instead of a business plan. Her advice to others: “My advice would be maybe for folks to reach out to experts in certain aspects of their business where they don’t tend to have those same strengths, and then they can focus their time on the things they want to spend their time doing.” As a larger boutique in the state, AK Starfish Co. has encountered difficulties with point of sale systems that can span the distance of their six stores, but Nelson says it’s important to make sure such a system is in place. “Systems are key to making things efficient and to run smoothly, and I’ve been willing, like I said, to do it the hard way and the more laborious paper tracking methods. They get the job done, it’s just that they take more time and energy,” Nelson says. “Money can quickly become a major stress,” Dorris says, especially for boutiques that cater to seasonal dollars. “If you budget well and have money set aside to cover the unexpected expenses and slow times, you can minimize the stress when it comes up.”

“We have a cookbook launching in spring 2020, and we’re excited to be building our seafood program with additional frozen and shelf-stable wild Alaska seafood options available in store and to our web customers,” Laukitis says. “Our short term focus is empowering our growing team with commercial fishing knowledge, seafood knowledge, and to prepare for our summer.” Sena’s growth plan for Crab Island Terror includes expanding into a community center with an art space and coffee shop alongside the boutique.

AK Starfish Co. has six stores throughout the state with seasonal storefronts in Homer and Seward. Marci Nelson

No End in Sight As artists and business owners, the women who run Alaska’s boutiques work continuously to add new designs and products, including unique collections and styles in anticipation of the peak summer season this year. “I’ve spent the last few months in my studio working on a project that I’m hoping to debut this summer,” Dorris says. “I have a feeling that this current stream of inspiration will lead to something fun down the road, but I’m still in the discovery stage and not quite ready to put words to it.” Neaton and Laukitis are continuing to expand the scope of their boutique from clothing retailer to the ultimate authority on Alaska salmon. www.akbizmag.com

Alaska Business

July 2019 | 11

TELECOM & TECH

The Internet of Things 12 | July 2019

Simplifying life by connecting devices, people, and businesses

By Tracy Barbour

he Internet of Things (IoT) is a somewhat nebulous term associated with a plethora of technological advancements that are helping enhance the lives of consumers and business operations. IoT is essentially a computing concept that encompasses the idea of everyday physical objectsâ&#x20AC;&#x201D;devices, vehicles, buildings, and other

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www.akbizmag.com

Alaska Business

July 2019 | 13

items—being connected to the internet small when it comes to IoT. “The path to and being able to identify themselves a Jetsons-like future will be paved with to other devices. These interconnected humble services, like those designed to objects, which have unique identifiers, monitor small children or pets, if you’re have the distinct capability of collecting a consumer, or remote machinery or and transferring data over a network vehicles if you’re an enterprise,” he says. The beauty of the IoT model is that it without requiring human-to-human or eliminates a lot of the grunt work from human-to-computer interaction. To Josh Lonn, GCI’s vice president everyday tasks. A prime example of this of wireless products, IoT represents the is how Apple and Google democratized “ability to enable virtually anything to smart phones for the masses a decade connect to the rest of the world over ago. “In much the same way, pioneers the internet.” Many people think of IoT in the IoT space are finding ways to as smart refrigerators or self-driving automate and simplify traditionally manAlaskaBusiness_2019.pdf 1 4/15/19 10:41 AM cars, but he encourages people to think ual, time-consuming tasks,” Lonn says.

“Delivering this sort of smarts allows businesses to focus their precious human resources on more strategic or impactful tasks. And for consumers, it just plain makes life easier.” Jim Gutcher of Alaska Communications also appreciates the utility of IoT. While IoT got its start in the manufacturing industry, it has evolved to the consumer space to include many things people use in their daily lives, says Gutcher, senior director of product management, marketing, and pricing. With IoT, interrelated devices collect data and/or perform a function. The devices are connected to the internet, controlled by an application, and have a repository for the data they gather. For example, a fitness monitor collects data, while a smart light bulb takes an action. Regardless of function, a system of interrelated computing devices clearly enhances people’s lives. “Connected devices enable us to track our daily habits, monitor our health, manage our home energy use and security, and much more,” Gutcher says. “This data gives us the opportunity to make informed decisions in ways not possible in the past.”

IoT Requirements A variety of technologies and devices converge to allow the functionality of IoT. A crucial element in the equation is the network—which can be wired or wireless—that is used to communicate between devices of an IoT installation. A device, obviously, is another common IoT component. Every device needs a sensor or sensors, a modem to communicate what it's sensing back to the network, some sort of an embedded subscriber identification module (SIM), and a battery or power source. “The good news is that battery life has improved tremendously,” Lonn says. “In many cases, these things [devices] can live without being touched by a human for a very long time.” The other important aspect of an IoT product is some sort of interface that aggregates—and converts into a usable format—collected data. Developers also need to think about if there is a software aspect, which is typical with IoT. Lonn says: “Developers need to think about the user experience they want to deliver and whether that involves the use of, say, a smartphone application or a desktop workstation… On the industrial side, there needs to be a way for a front-line

CMY

14 | July 2019

Alaska Business www.akbizmag.com

employee to review the work and all the data.” Over the years, the cost of the components required to facilitate IoT have been decreasing with technological advancements. And this makes implementing IoT more feasible for companies of all types and sizes. “The cost of accelerometers, barometers, and thermometers have fallen off a cliff due to advances in miniaturization, and radio module costs continue to drop as well, meaning you don’t necessarily need to be a large-cap company to launch an IoT product,” Lonn says. Today, companies are increasingly placing sensors on devices to capitalize on IoT. At this year’s Consumer Electronics Show in Las Vegas, for example, companies were intent on putting connected sensors into pretty much everything, Lonn says. “From smart parking spaces to skin patches that admonish you if you’ve had too much sun, the sky truly is the limit.” However, the winners in the IoT space will be the companies that think carefully about what is most meaningful to users. Just because something is possible doesn’t mean there is a good business case behind it. Consequently, GCI is focused on delivering the best IoT access to customers in ways that benefit them the most. “That means we are looking at ways to harness our LTE wireless network and our world-class, hybrid fiber-coax plant to benefit Alaska’s consumer and enterprise markets in game-changing ways,” Lonn says.

How Companies Can Benefit from IoT IoT can benefit a wide range of organizations. Manufacturing companies can place IoT sensors on equipment to measure factors such as voltage fluctuations, temperature, and vibration. The data can be fed into a platform for real-time monitoring, analytics, and alerts, which can expose hidden problems before they cause equipment failure. Gas and utility companies can use IoT-enhanced technology to support a smart grid that allows power meters to be read remotely and then analyze the data to prevent and respond to outages. These automated reporting processes can help simplify reporting tasks as well as improve decision making. IoT can also be used by retail stores www.akbizmag.com

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July 2019 | 15

precipitation, and wiper frequency, among other data. Azure’s cloud computing solution facilitates the process. With IoT, DOT&PF gains insight to make better ground-level decisions, saving lives and reducing road maintenance costs. In addition to Microsoft Azure, there are a number of third-party solutions that organizations can use to capture the benefits of IoT. They include Cisco Kinetic IoT Platform, Intel IoT Platform, and Splunk Industrial Asset Intelligence.

IoT Evolution

to improve inventory management, preventing lost sales and enhancing customer satisfaction. And educational institutions can enhance safety by using connected video cameras and facial recognition to identify visitors in real-time. State and local government agencies can use IoT and analytics to gain insights in a variety of areas. For example, LEDenabled traffic lights can save considerable energy and, in the future, connected traffic lights will be able to automatically dispatch public safety personnel to motor vehicle accidents.

Application of IoT in Alaska Like the rest of the nation, consumers and businesses in Alaska are capitalizing on IoT to make their lives easier. Consumer usage of IoT in Alaska is no different than anywhere else. “Alaskans enjoy the conveniences of smart watches and digital assistants as much as the next person,” Gutcher says. “Alaskans love to travel, and in some cases, live somewhere warmer for part of the year. Being able to check in on our homes while we’re away is an example of the value the IoT provides.” The application of IoT in industrial, commercial, and infrastructure spaces is also becoming more prevalent in Alaska. In the industrial and manufacturing industries, IoT sensors connected to the internet have enabled a set of analytics that was not previously possible. “The IoT is transforming industries by enabling them to optimize operations, implement predictive processes, collect and analyze data, and make real-time decisions,” Gutcher says. 16 | July 2019

At GCI, Lonn is also seeing growing use of IoT in Alaska. For instance, he’s noticed a healthy demand for remote site monitoring and electronic control of work. That’s not surprising, given Alaska’s expansive geography. “Considering the sheer size of our state, services that enable our enterprise customers to reduce windshield time or low-payoff manual activities are those that have garnered the most near-term interest,” he says. Industrial applications for IoT are also increasing in Alaska, primarily driven by the need to reduce costs and improve safety. “From mining, oil and gas, seafood, and transportation, we are seeing a growing demand for these services,” Lonn says. A simple example of the application of IoT in the 49 th State is the North Slope’s delivery of potable water and sewage removal. Water on the North Slope is expensive to harvest, treat, and deliver. “The use of sensors can help conserve water and better manage the delivery and removal, ensuring that it doesn’t run out or fill up,” Lonn explains. IoT is being employed by state government agencies as well. For example, the Alaska Department of Transportation and Public Facilities (DOT&PF) is using Microsoft Azure IoT and the Fathym WeatherCloud solution to enhance its decision making about deploying road crews. WeatherCloud relies on mobile sensors placed on the interior windshield and bumper of maintenance vehicles. The sensors track road temperatures, humidity,

IoT is constantly evolving. And the convergence of different technologies, real-time analytics, artificial intelligence (AI) machine learning, commodity sensors, and embedded systems is accelerating its evolution. This is where things get “very exciting,” says Lonn, referring to the impact of the merging of different technologies and devices. As more sensors are deployed gathering more information, both human and machine learning make sense of aggregated data, which in turn makes the services more relevant and, therefore, used more and more frequently. “We have seen this network effect on the consumer side, as Google, Apple, Amazon, and Microsoft race to integrate their respective AI into everything from phones to portable speakers,” he says. Lonn is fascinated by the evolution of the digital personal assistant—manifest in products like Amazon’s Alexa and Google’s Home—and how it is taking advantage of a diverse and increasinglyprevalent network of embedded sensors. “The more customers allow these sensors into every aspect of their daily lives, manual and machine learning allow them to grow ever more adept, and, thus, more useful,” he says. “It’s a virtual cycle that is advancing the state-of-the-art in ways that continue to delight those that embrace the technology. Alongside the benefits of these advances, developers have increased their focus on protecting personal privacy and data security.” On the industrial side, IoT allows for smart maintenance—which can have a significant impact. Rather than replacing parts on a manufacturer’s recommended schedule, operators have the ability to replace them when needed or just-intime. “Tiny trends can be spotted by

Alaska Business www.akbizmag.com

the analytics and give better predictive knowledge,” Lonn says. “This reduces costs and improves uptime.” From a trend-oriented standpoint, Gutcher anticipates the continued evolution and popularity of IoT. And this will enhance people’s reliance on broadband technology. “The foundation for the IoT is flexible, secure, and reliable broadband networks,” he says. “The demand for broadband will continue to increase as the IoT becomes a greater part of our everyday lives. There are four significant tech trends you may recognize in which broadband is the foundation: big data/storage, analytics and artificial intelligence, the internet of things, and mobility.”

Future Growth So, what future developments can we expect with IoT? The sky is the limit, according to Gutcher. People are just scratching the surface of what can be connected through IoT. “As the IoT grows, the technology is not going to be the limitation,” he says. “The limitation will be the human factor, for example—security, privacy, user experience, and governance.” However, IoT will continue to push advances in security, an increase in bandwidth needs, continued reliability, and reduced latency. And Alaska Communications is poised to address these areas, according to Gutcher. “With leading IT capabilities and a network built for reliability, the Alaska Communications network extends across the state to the Lower 48, bringing the highest level of technology, reliability, and security to Alaskans,” he explains. The deployment of technology, however, must be strategic and driven by carefully-considered needs. That’s why GCI has a guiding principle to never deploy technology just for the sake of technology. “Many early instances of IoT fell into that trap,” Lonn explains. “Refrigerators that automatically warn you when the milk is about to go sour sound cool in concept, but are most consumers going to pay a premium for that type of intelligence?” The companies that are going to win in the IoT space, Lonn says, are those that put customer benefit first. “As the cost of sensors and modems continues to drop, consumer and industrial use cases will continue to become more affordable, which means more people will be willing to give them a try,” he says. www.akbizmag.com

the Lifeof the

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INSUR ANCE

Risky Business

Insurance and risk management best practices

By Tracy Barbour

isk management—the process of identifying, assessing, and prioritizing the different types of risk an organization might encounter—is essential to the success of any business. However, companies can employ various insurance products and prudent practices to minimize their exposure in the workplace. Generally, risk management involves avoiding or eliminating the vast number of events that could have an adverse impact on a business. The events could negatively affect everything from personnel safety and wellness to a company’s day-to-day

18 | July 2019

operations and overall financial perfor- come to work and be happy to be there. mance. More specifically, risk manage- I want it to be comfortable and a place ment entails identifying hazards (some- that they’re glad to come to every day.” thing with the potential to cause harm), assessing the associated risk (the likeliEmployees, an hood of that potential harm happening), Essential Element minimizing any risk deemed unaccept- Regardless of the industry or work enviable, and then controlling the situation to ronment, all businesses are exposed to mitigate any remaining hazards. varying levels of risk. And risk assessment To Jana Smith, the managing is an integral part of managing partner in Parker, Smith & Feek’s that exposure. While there are Anchorage office, risk manno set rules on conducting a agement is a culture that risk assessment, the process companies create from the often includes determining top down. “It’s overall propotential hazards, analyzing viding a safe environment for what could happen if a hazard your employees to grow and occurs, and defining effective have a positive experience in control measures. the workplace while at the While assessing risk is an same time achieve work-life important component of the Jana Smith balance,” says Smith, CPCU, risk management process, Managing Partner Parker, Smith & Feek ARM, CIC. “At the end of the businesses should start by listday, I want my employees to ing every potential risk, says Parker, Smith & Feek Alaska Business www.akbizmag.com

from the CEO down to the Chris Pobieglo, president of janitor,” Pobieglo says. “It’s reBusiness Insurance Associates. ally important that businesses Then they can get into a deeppromote that culture with their er level of assessing each risk staff.” and looking at how likely it is to Paul Houston, president of happen and its impact. “Then Conrad-Houston Insurance, you’ll have to make decisions agrees. He thinks people are about prioritizing where you the most important element want to put your resources in the risk management equaand time,” he says. Chris Pobieglo tion. He explains: “You can do It’s critical that risk assessPresident ment be consistent, system- Business Insurance Associates everything possible to make a atic, and conducted in the Business Insurance Associates workplace safe, but if people don’t follow best practices, correct context. In addition, all potential hazards should be docu- they are still going to get hurt. You have mented—no matter how improbable and to hire good people and train them to low-risk they are. Ultimately, risk assess- follow best practices.” ment—when done effectively—can give businesses a valuable tool for deciding Addressing Workplace Issues which risks they are prepared to accept Risk management involves addressing a based on their policies and standards. wide range of issues in the work environThe most impactful factor in managing ment, with a primary area being safety. risk in the workplace is employees—not Depending on the business operation, the environment, according to Pobieglo. there may be risk associated with the Businesses can manage their environ- type of work employees are performing, mental risk, but it takes people to identify says Smith, who works with clients to when there are deficiencies and to resolve create dynamic and responsive insurance those deficiencies. And it’s essential for all and risk management programs. She employees to be part of that process. “Ev- explains: “Does your employee who’s siteryone in the company is a risk manager, ting at a desk have the proper ergonomic

“You can do everything possible to make a workplace safe, but if people don’t follow best practices, they are still going to get hurt. You have to hire good people and train them to follow best practices.” —Paul Houston President Conrad-Houston Insurance

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environment? It might be that they are working out in the field and have a job that requires heavy equipment. Or in the healthcare industry, they may be lifting patients. And that’s just in the area of physical safety.” Another significant area of risk management is health and wellness, which companies can address directly through benefits packages. Employers should have programs that encourage wellness, healthy practices, and safety. Parker, Smith & Feek, for example, gives employees access to nutritional information and time off to participate in health activities. The company also has a wellness website staff can log into and receive credit for engaging in healthy practices like getting a physical, supporting a community fundraiser, donating to a charity, competing in a race, losing weight, sleeping eight hours a night, and even drinking eight glasses of water a day. “You get points and when you get to certain levels, you might get a Fitbit or something else,” Smith says. Another vital aspect of managing risk is promoting mental health wellness. Many companies can offer an employee assistance program as part of their benefits package. “It provides assistance for whatever personal issues workers are dealing with,” Smith says. “That way, employees have the ability to speak 20 | July 2019

with a professional counselor.” Any business—regardless of its size— can implement risk-mitigating health and wellness programs. Doing so benefits the company in the long run, but the employer has to make the investment. “The cost benefit will depend on your goals and objectives, but workplace safety reduces the cost of your workers’ compensation insurance,” she says. Workers’ comp insurance, which is required by the state, is a primary instrument for addressing employee safety. Under the Alaska Workers’ Compensation Act, all employers with one or more full- or part-time employees are obligated to purchase and maintain workers’ comp insurance policies. Workers’ comp insurance is designed to protect workers and employers from some of the losses caused by on-thejob accidents and job-related illnesses. It covers medical expenses and a portion of lost wages for employees who become injured or ill on the job as well as employee rehabilitation and death benefits. For employers, workers’ comp offers protection from lawsuits stemming from workplace injuries. That’s because in exchange for their compensation, injured workers lose the right to sue their employer for negligence. Workers’ comp insurance fills a substantial void as health

insurance policies typically exclude coverage for work-related injuries. And health insurance policies generally don’t cover lost wages or reemployment benefits for serious work-related injuries that prevent an employee from working for an extended period of time. In addition to workers’ comp insurance, companies can use their benefits package to promote health and wellness among their employees. They often provide medical/disability insurance, vacation, and sick leave as basic benefits. Increasingly, companies offer paid time off (PTO) that employees can use however they wish. “PTO is a great thing, but employees need to be responsible in using it to make sure they do not use up all their time for vacation and have to come to work sick,” Smith says.

Insurance for Managing Risk While human resource strategies can help businesses minimize risk management problems, insurance can help companies protect themselves, Houston says. It’s sort of a risk transfer and protection approach. “Most businesses want to do the right thing, and they buy insurance for the things they can’t stand happening to them [as a worst-case scenario],” he says. There is an array of insurance products available to help businesses deal with the

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diverse range of exposure they face. An important option is professional liability insurance, which helps companies make sure they are documenting and doing the right thing for their customers. Also known as errors and omissions insurance, it protects a business from claims of negligence related to providing a professional service or giving advice. Another common product is employment practices liability insurance, which protects employers but also is a tool for employees to bring claims for a wrongful work environment. Employment practices liability insurance (EPLI) includes coverage for defense costs and damages related to various employment-related claims, including allegations of wrongful termination, discrimination, workplace harassment, and retaliation. EPLI also provides coverage for many situations that general liability insurance does not. Houston says he’s seeing more people becoming aware of EPLI claims. It’s important for companies to properly train their managers to keep them from running afoul of the law, but exercising common decency can obviate many problems. “A lot of it is being a decent person,” he says. “That takes care of most of your claims. It doesn’t stop you from getting sued, but it can prevent you from doing something wrong.” Pobieglo also views EPLI as a necessary facet of managing HR exposure. “On one hand, you’re wanting to protect your employees and the general public,” he explains. “On the other hand, you want to protect yourself from employees and former employees.” In many cases, Pobieglo says, it’s former employees who will bring a lawsuit. And it doesn’t have to be a legitimate complaint for an employer to rack up significant expenses, given that the average employment practices liability claim is $625,000. “You can do everything right, and you can still have defense costs,” he says. “We’d like to see people carry $1 million. Even a $100,000 policy is better than nothing, and it can cover the typical frivolous lawsuit.” Depending on the size of the company, the annual premium for EPLI ranges from $200 to $300. But if businesses go to court, they have a strong chance of losing as about 70 percent of employers do not win their cases. “The courts are heavily tilted toward employees,” Pobieglo says. A cyber liability policy can also help companies manage risk. Cyber liability www.akbizmag.com

insurance, which is becoming commonplace, can protect businesses against lawsuits filed by customers or other parties as a result of security or privacy breaches. They can cover claims that allege that the business failed to protect sensitive information stored on its computer system. About 80 percent of claims relating to cybersecurity involve phishing emails, which are becoming more prevalent and more costly to mitigate. This makes cyber liability insurance, coupled with employee training, crucial for companies. “As a business owner, you can’t control every keystroke your employees do,” Pobieglo says. “It’s really important to have policies and procedures in place that govern the use of technology and make sure people stick with those policies.” Businesses in almost every industry have cyber exposures, according to Pobieglo. Recently, Business Insurance Associates developed a seven-question tool to help businesses assess their cyber security risk.

resources like free legal advice. “Insurance brokers sell insurance policies, but today’s insurance brokers are a lot more sophisticated and bring much more to the table,” Pobieglo says. “We’re really risk consultants… We can tailor what we do to the client’s needs.”

Non-Insurance Related Tactics Companies can also mitigate risk using non-insurance tactics and helpful resources. For example, they can implement internal measures to reduce safety violations, including having workers wear safety gear, installing safety mechanisms on equipment, and enhancing safety training. Businesses can use training programs on various topics to ensure employees— including managers and supervisors— are educated about how to conduct themselves in a way that supports effective risk management. And they can leverage an employee handbook

“The cost benefit will depend on your goals and objectives, but workplace safety reduces the cost of your workers’ compensation insurance.” —Jana Smith, Managing Partner, Parker, Smith & Feek

Clients can use the company’s Cyber Risk Audit tool to address important questions:  What type of information do you collect?  What type of data do you have and where is it located?  Do you limit access to the data?  How do you dispose of your data and information when it is no longer needed? It’s imperative that businesses make their insurance purchasing decisions based on their exposure—and not just according to state regulations or contractual obligations. “They need to identify and assess their own exposure and then make insurance purchases based on that,” Pobieglo says. If companies lack internal risk management expertise, insurance brokers and other partners can offer broad assistance. They can perform safety and HR audits; advise clients about policies, procedures, and tools that can help them manage risk; and provide access to value-added carrier Alaska Business

to reduce incidents related to sexual harassment, discrimination and hostility, and other behavioral issues. “Employers should have an employee handbook that provides information on all of those topics,” Smith says. Companies can also capitalize on external insurance-related tools to enhance their risk management efforts. Clients of Conrad-Houston Insurance, for example, can take advantage of a new risk management product called ThinkHR. The resource provides training videos and information about important topics, including OSHA standards, how to build a good employee manual, and the proper way to terminate employees. “There are an awful lot of rules that small businesses have to comply with, and many of them don’t have anyone in place to keep up with them,” Houston says. “With this product, they will be able to pick up the phone and talk to someone, live chat, email, and visit the website.” July 2019 | 21

H E A LT H C A R E

Pros and CON The ins and outs of the Certificate of Need program By Isaac Stone Simonelli

ertain essential services arguably exist outside of the sphere of free market forces. One such set of services is provided by hospitals, which are required to provide care, often at a loss, in some cases under the Emergency Medical Treatment and Labor Act (EMTALA), for example, a 22 | July 2019

federal law that requires anyone who seeks help at an emergency department be stabilized and treated, regardless of insurance status or ability to pay. It is the (often necessary for underserved patients) overuse of expensive emergency room services combined with defunding of certain programs that have contributed to the adoption of the Certificate of Need (CON) Program in Alaska. The CON Program is a review process designed to promote responsive healthcare facility and service development, rational health planning, healthcare quality, access to healthcare, and

healthcare cost containment. With the Last Frontier’s coffers tapped for Medicaid, Alaska is incentivized to find ways to meet the need for public services; promote transparency; and avoid excessive, unnecessary, or duplicative development of facilities or services, explains Becky Hultberg of the Alaska State Hospital and Nursing Home Association (ASHNHA). Nonetheless, even advocates for the program believe the CON program—in its current state—has some shortcomings. “Nearly two years ago, Alaska Regional went through the Certificate of Need application process. The program definitely has some issues that should be addressed,” Alaska Regional Hospital CEO Julie Taylor says. “ASHNHA provided feedback to DHSS regarding opportunities to improve the program. The CON Program

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FROM HERE TO THERE? NO PROBLEM. plays a key role in containing costs, especially for the Medicaid program.” The CON program requires hospitals, nursing homes, and other facilities to prove the need for an expansion of services and infrastructure costing above $1.5 million. “The expenditure threshold for CON was $1 million for many years; however, beginning on July 1, 2005, the expenditure threshold increased to $1,050,000 and increased by $50,000 annually on July 1 through 2013. It is now capped at $1.5 million,” explains CON Program Coordinator Alexandria Hicks. Healthcare facilities subject to the CON process include “a private, municipal, state, or federal hospital, psychiatric hospital, independent diagnostic testing facility, residential treatment center, tuberculosis hospital, skilled nursing facility, kidney disease treatment center (including www.akbizmag.com

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“The CON Program plays a key role in containing costs, especially for the Medicaid program.” —Julie Taylor CEO, Alaska Regional Hospital

freestanding hemodialysis units), intermediate care facility, and ambulatory surgical facility.”

Unprofitable (but Vital) Services ASHNHA Senior VP Jeannie Monk argued in her April testimony against a senate bill to repeal the program that such a move would threaten the sustainability of community hospitals, which must continue to provide 24-hour emergency services to all in the community regardless of a person’s ability to pay. “Hospitals prepare for and respond to emergencies that impact the public’s health such as flu epidemics, earthquakes, and other natural disasters. Because of the community responsibility to provide 24-hour emergency medical services and other essential services, hospitals have significant fixed and operating costs that must be covered,” Monk says. “Not all services in a facility are profitable. In fact, many operate at a loss and the facility relies on profitable services to maintain operations. Without reasonable CON standards, healthcare providers with purely economic motives can cherry-pick profitable service lines which will threaten a hospital’s ability to provide the full range of care to a community.” Hospitals—unlike concierge, singlespecialty, and niche providers—provide stabilizing treatment to anyone who comes to the door and maintain critical emergency preparedness infrastructure, she explains. Emergency services, trauma care, and perinatal services are all services that lose money for hospitals because of the resources required to support them. However, such services are vital to all Alaskans. Monk argues that at the very least, 24 | July 2019

Alaska should conduct a study to understand potential impacts before considering a bill that would repeal the program. Her thoughts are echoed by Taylor: “Changes to or elimination of the CON program should be carefully analyzed to make certain the desired outcome is achieved and unintended consequences avoided while ensuring Alaskans have access to quality healthcare.” Unlike oil or seafood, because of federal laws and regulations such as EMTALA, as well as the significant proportion of public payment for healthcare, the healthcare market must be thought of differently. “CON repeal is based upon a flawed assumption that the healthcare market functions as a normal free market and that [repeals of] CON will reduce costs,” Taylor says. The absence of the CON program would lead to an increased cost of Medicaid, explains Hultberg. “Some services, like skilled nursing facilities, are more than 75 percent Medicaid-funded. Without CON, unchecked growth of these services would

Office have shown that, in healthcare markets, “supply creates demand.” A large part of this is thought to be the way insurance impacts client decisions, as there is significantly less “shopping around” for the best deal when it comes to many medical procedures. According to Mark Mack, manager of the Government Finance Officers Association’s Research and Consulting Center, there are seven primary reasons for rising healthcare costs. They include a fee-for-service system, which rewards volume of procedures, incentivizing overtreatment; prescription drugs; new medical technology and use of new medical technology; an aging population; unhealthy lifestyles; high administrative costs; and service provider consolidation, which is one factor that does not play a significant role in Alaska. Proponents of the CON Program argue that excess capacity in the form of overbuilding results in healthcare price inflation. “Supply tends to create its own demand. Assets must be paid for and the only way they can be paid for is through increased

“Without reasonable CON standards, healthcare providers with purely economic motives can cherry-pick profitable service lines which will threaten a hospital’s ability to provide the full range of care to a community.” —Jeannie Monk, Senior VP, ASHNHA

directly result in increased state Medicaid costs. In addition, competition in healthcare does not always bring down prices.”

CON and Competition Hultberg points out that Anchorage has a significant number of outpatient surgery centers that either received a CON or did not fall under the program guidelines. “If competition in healthcare always reduced prices, surgery prices would have decreased significantly in the Anchorage market. They haven’t,” she says. Studies conducted by Blue Cross Blue Shield and the federal General Accounting

rates or utilization,” Hicks explains. For example, a new MRI means statistically more MRIs are ordered, even for the same size population. Similarly, more service providers don’t lead to more competition. “Providers have no direct incentives to lower charges or utilization,” Hicks says. “In an area where the population is stable and no new services are offered, new providers simply take services away from existing providers or, at worse, increase use by performing unneeded tests and treatments. Mid-size and larger hospitals are likely to have to raise rates to maintain financial stability if profitable cost centers are reduced or eliminated by unbridled

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development of freestanding facilities.” Despite the CON Program there is still a certain level of free-market competition for some services, as there are exceptions for certain healthcare service providers. If a service is offered from the private office of physicians or dentists, they do not need to be assessed via the CON Program. However, the business and all business assets must be 100 percent owned by one or more physicians or dentists; the office cannot otherwise be a healthcare facility; the business must provide assessment, diagnosis, and treatment to patients on an ongoing basis; and the business must hold a valid business license.

CON Program Standards If a facility does not qualify for exception, it is required to go through the CON Program and will be assessed on six primary standards. The company must show a need for the project by the population served or to

be served. This can include the needs of “rural populations in areas having distinct or unique geographic, socioeconomic, cultural, transportation, and other barriers to care.” The applicant needs to provide a longrange development plan that is integrated with community and health planning at all regulatory levels. “A demonstration under this standard should show that the applicant has checked with the department regarding any relevant state plan, with appropriate federal agencies for relevant federal plans, and with appropriate communities regarding community or regional plans,” according to the Department of Health and Social Services. The applicant must demonstrate evidence of stakeholder participation in planning for the project and in the design and execution of services; that they have assessed alternative methods of providing the proposed services; and

that the proposed services are the most suitable approach. The organization seeking a CON is also required to describe the anticipated impact on existing healthcare systems within the project’s service area that serve the target population and the anticipated impact on the statewide healthcare system. Finally, applicants must demonstrate “that the project’s location is accessible to patients and clients, their immediate and extended families and community members, and to ancillary services. This includes the relocation of existing services or facilities.” Additionally, the program requires healthcare organizations to describe their services not only with regard to the general population but underserved groups and those without the ability to pay for services. In states that do not have CON Programs—Alaska is one of thirtyfive states that does—some healthcare providers reduce services to rural, high/ special needs areas. Instead, they tend to locate services in more affluent, profitable areas. The impacts of such a migration (if it were to occur in the Last Frontier) on the state’s many rural communities could be devastating and costly.

CON Applications Because of the complex nature of construction, financing, and the services offered in a hospital, CON applications are lengthy documents, explains Hicks. “Much of the information that is included is standard for anyone developing a plan of action to make a prudent business decision,” Hicks says. “The application must be submitted to the CON Program for review, and it has twenty days to review the document for completeness.” After the application is declared complete, the review process takes no more than ninety days unless extended under certain criteria, which could increase the time to about six months if no hearing is requested. “For those agencies who plan appropriately, completing the CON process imposes no significant financial burden or time delay. The process is similar to planning and zoning and fire marshall reviews of plans,” Hicks says. 26 | July 2019

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Hicks points out that one of the many advantages of the program is that it is an open and transparent process for applicants and the public at-large, ensuring the necessary public accountability to implement and maintain it. “CON promotes access to care for all Alaskans by promoting effective stewardship of healthcare resources. By imposing market entry regulation, which is grounded in community-based planning, CON ensures appropriate allocation of healthcare resources, assures access to care, maintains quality, and assists in controlling healthcare capital spending,” Hicks says.

Improving the CON Despite a multitude of advantages of the CON Program in Alaska, Hicks says regulatory change is necessary to make the CON Program current. “In Alaska, the regulations governing the CON Program have not been updated since 2009. Another update is necessary and is currently underway,” Hicks says. “A series of public meetings were held to obtain comment from CON providers and other members of the public affected by [the] CON. As a result of the public meetings or ‘listening sessions,’ a regulation change package was completed and will soon be presented back to the public for additional comment or feedback before it is finalized.” As part of the updates to the CON Program, Hicks says there will be a re-evaluation of the Service Specific Methodologies used to determine need. The changes will be designed to “more accurately capture existing provision of services and utilization, forecast need, and include service specific factors per service specific methodology or calculation.” The revisions will also include the public in the process, says Hicks. Though the federal requirement for a CON was eliminated in 1987, its mission continues to resonate with many healthcare providers. Nonetheless, nearly all agree that improvements are necessary to allow it to better serve Alaskans “We agree that problems exist within the current CON program and we encourage the Department of Health and Social Services to move forward with a regulatory review of the program to ensure that it is accomplishing its intent and meeting the needs of Alaskans,” Monk says. www.akbizmag.com

Alaska

HEALTHY ENVIRONMENT. HEALTHY ECONOMY.

The Nature Conservancy in Alaska thanks our Corporate Council on the Environment. These business leaders know that Alaska’s natural health is the cornerstone of its wealth. To join us visit nature.org/alaska natureconservancyalaska nature_ak 715 L Street, Suite 100 Anchorage, Alaska 99501 907-865-5700 Photos: Erika Nortemann (top) Bethany Goodrich (bottom)

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THE BEST OF ALASKA BUSINESS AWARDS 2019

The 2019 Best of Alaska Business Awards: All your votes, dozens of businesses, and tons of local talent

elcome to the fourth annual Best of Alaska Business Awards! As part of our continuing mission to support Alaska’s business communities, each year we look to you, our readers, to tell us which businesses excel in a range of diverse categories. For the 2019 Best of Alaska Business Awards we presented twenty-three categories: some of them are fan favorites from previous years and several are brand new. How do we determine the categories you ask? Good question. Each year the editorial team analyzes survey results from the previous year, looking at which categories connected with our readers and which (if any) were regularly skipped; we combine those results with your feedback and suggestions for new categories, and voila! A Best of Alaska Business Awards series of questions is born. This year we added a number of new categories that saw great response, including Best Grocery Store, Best Gym, and Best Florist, to name a few. And as always we saw amazing engagement for Best to Place to Work, Best Coffee Shop, and Best Brewery. Beyond great content (thanks again for voting!), an important part of the Best of Alaska Business Awards special section is the artwork. Each year we find 28 | July 2019

an Alaskan artist and give that person free reign to pursue a design that he or she thinks best represents Alaska, the business community, and the categories you’re voting on that year. This year we are fortunate to feature the work of Jontue Hollingsworth (check out Off the Cuff to learn all about this talented entrepreneur). Hollingsworth’s incredible design skills, combined with the work of local, talented photographers and your participation, made this year’s section one for the books. We’re thrilled to be given the opportunity to recognize so many new names in 2019 and to celebrate those businesses that have been voted best in their field year after year. One significant and exciting change is to the Corporate Citizen category. Because there are so many exceptional companies and employees donating their time, money, and hearts to important philanthropic causes, we’ve published all of the companies you voted for in this category with three editor’s picks, in no particular order, that work tirelessly to improve Alaska’s communities in unique ways. Thank you to everyone who participated in the survey and congratulations to the 2019 Best of Alaska Business Award winners.

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Covenant House Alaska covenanthouse.org/homeless-shelters/anchorage-alaska Covenant House Alaska’s mission to provide services to homeless, trafficked, and runaway youth demands employees who will invest in others—so Covenant House Alaska invests in turn in its employees, who are both talented and motivated to make a difference for the 2,331 youth the organization serves annually.

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Alaskan-owned and –operated, full service accounting and tax firm Altman, Rogers & Co. invests in talented people, providing “the culture, resources, and support” that employees need to develop as professionals and find success. Altman Rogers also builds Alaska’s workforce through internship and job shadowing opportunities at its Anchorage, Soldotna, and Juneau offices.

“Career growth is nurtured at PDC,” 100 percent employee-owned engineering firm PDC Engineers states. In addition to generous health insurance, leave, and retirement benefits, the company also offers tuition reimbursement, society memberships, and professional development support, as well as one-on-one mentoring at all career levels.

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THE BEST OF ALASKA BUSINESS AWARDS 2019

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fnbalaska.com First National Bank Alaska has swept this category for the fourth consecutive year. Board Chair and CEO Betsy Lawer says, “It’s all about our employees,” which the bank demonstrates through competitive salaries, training and development opportunities, generous leave, healthcare plan choices, a 401(k)/profit sharing plan, and opportunities for career advancement.

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“At GCI our employees are our most valuable resource,” GCI states, and to keep that resource happy and productive the company provides a competitive 401(k); paid leave and holidays; and medical, dental, vision, and life insurance options. GCI seeks out professionals who exemplify leadership, are connected to the industry, and seek to build up Alaska’s communities.

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Credit Union 1 cu1.org According to financial institution Credit Union 1, “One of the biggest benefits of working at Credit Union 1 is the true opportunity to help others. We encourage our employees to participate in community service programs and volunteer their time to the causes they care about.” Other benefits include insurance, tuition assistance, and paid leave and holidays.

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THE BEST OF ALASKA BUSINESS AWARDS 2019

GCI

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THE BEST OF ALASKA BUSINESS AWARDS 2019

BEST HOTEL FOR CORPORATE TRAVEL

Hilton Anchorage hilton.com For the convenience of its business travelers, the Hilton Anchorage offers A/V equipment rental, complimentary printing services, express mail, meeting rooms, video conferencing, video messaging, and a business center, as well as a fitness room and pool and onsite bar and café—all combined with the hotel’s warm, inviting guest rooms.

ST. ELIAS

The Hotel Captain Cook

Anchorage Marriott Downtown

captaincook.com

marriott.com

The Hotel Captain Cook offers top-notch service and meticulous attention to detail to guests in every one of its 546 rooms, which includes 96 suites. Located in downtown Anchorage, the hotel is particularly advantageous for corporate travelers, featuring four onsite dining options and several athletic facilities open every day.

The Anchorage Marriott Downtown is located close to the Anchorage Museum, Egan Center, and Anchorage Cruise Port. Whether visiting the pool and fitness center or taking advantage of the hotel’s meeting rooms and business center, the Marriott is a welcoming home-base for any corporate traveler.

DENALI

32 | July 2019

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Alaska Business www.akbizmag.com

Lee Fisher POSITION: Manager, Gatehouse & Equipment Control LOCATION: Anchorage, Alaska DATE HIRED: May 21, 2003 NOTES: Deep experience, familiar with all Alaska ports. Goes the extra mile to get the job done. A hard core road and fat bike racer that can be found on two wheels more often than two feet. Rides for fun and local charities, logging more than 3,500 miles last year.

Matsonâ&#x20AC;&#x2122;s people are more than Alaska shipping experts. They are part of what makes our community unique. Visit Matson.com

THE BEST OF ALASKA BUSINESS AWARDS 2019

BEST AIR CHARTER SERVICE

Rust’s Flying Service flyrusts.com Owned and operated by the Rust family, Rust’s Flying Service is the oldest and largest seaplane operation based at Lake Hood. Having purchased sister company K2 Aviation in 1996, the two airlines now have a fleet of twenty-two aircraft between them and are poised and ready to get Alaska's travelers where they need to go.

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Ravn Alaska flyravn.com Ravn Alaska provides air transportation to more than 115 towns and communities throughout Alaska, as well as into Canada and the Lower 48. Business travelers, tour companies, oilfield crews, athletic teams, and other parties with specific travel needs have taken advantage of Ravn’s well-equipped fleet and expert pilots for decades.

DENALI

Security Aviation securityaviation.biz Billing itself as “Alaska’s premier air charter company,” Security Aviation specializes in 24/7, full service, on-demand twin engine and jet charters. The company’s entire fleet is IFR-rated and equipped with GPS tracking, and all of the aircraft can be crewed with one or two pilots to fit a client’s safety requirements.

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34 | July 2019

Alaska Business www.akbizmag.com

CATERING OR DELIVERY

DENALI AWARD

of Alaska

Business

THE BEST OF ALASKA BUSINESS AWARDS 2019

Be inspired by the light of the Aurora Borealis. Renew your energy under the Midnight Sun. Experience the warmth of Fairbanks—Alaska’s Golden Heart—and the gateway to Denali, Interior and Arctic Alaska. Call 1-877-551-1728 x3765 for your free Meeting Planner Guide. Explore your Alaskan meeting opportunities at meetfairbanks.com.

36 | July 2019

Alaska Business www.akbizmag.com

BEST EVENT VENUE

captaincook.com With fourteen meeting and conference rooms including a library with a fireplace and a ballroom, The Hotel Captain Cook has the space to make any event a memorable one. The venue can accommodate meetings of “every size, from small board meetings to large-scale international conferences.”

ST. ELIAS

Dena’ina Civic and Convention Center

49th State Brewing Company

anchorageconventioncenters.com/denaina-center

49statebrewing.com

The Dena’ina Civic and Convention Center has everything any business needs to host an incredible event. With its modern design, stunning views, technology and professional services, and multiple meeting rooms and halls, the Dena’ina has the unique distinction of being both beautiful and functional.

It has a rooftop deck, plenty of outdoor seating, and two theaters that can host a range of events from live music and comedy to business seminars and meetings—with all that and great food and drinks, too, it’s no wonder 49th State Brewing Company is a multi-year, multi-category Best of Alaska Business award winner.

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FORAKER

Winner of the 2019 Alaska Business Monthly Foraker Award, small business category for

Best Places to Work Challenging & Rewarding Work Benefits Beyond PTO & 401(k) Family Friendly Offices Our vision is to “be the firm where everyone wants to work” and we do that by providing ample opportunity for advancement, promote career development, and most importantly keep you enjoying what you do. Take your career to the next level and join our family. We look forward to growing with you.

Apply Online

www.PDCENG.com/open-positions An Equal Opportunity Employer. All qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, gender identity, national origin, or protected veteran status and will not be discriminated against on the basis of disability. (EEO: the Law – EEO is the Law Poster Supplement). Photos © KenGrahamPhotography.com, © Kevin G. Smith Photography, and © Seed Media.

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Alaska Business

GROW WITH US

100% Employee Owned

Patrick Cotter, AICP

July 2019 | 37

THE BEST OF ALASKA BUSINESS AWARDS 2019

The Hotel Captain Cook

THE BEST OF ALASKA BUSINESS AWARDS 2019

BEST SWAG SUPPLIER

Stellar Designs stellar-designs.com Stellar Designs offers a full range of sportswear and promotional products, stating “Promoting your business is our business.” The company was established in 1981 and refreshes its website daily with the newest, on-trend products ranging from apparel and bags to drinkware, office tools, tech gadgets, and wellness items.

ST. ELIAS

Alaska Serigraphics

Klondike Promotions

akserigraphics.com

klondikepromotions.com

According to Alaska Serigraphics, “It’s all about image—your image—and how to promote it.” Alaska Serigraphics opened in 1981 and has grown from a small t-shirt printer to a multi-disciplined promotional company. The company provides clients an opportunity to see, feel, and try the products they supply at their extensive showroom.

Klondike Promotions bills itself as “Alaska’s source for promotional products and corporate apparel.” While the company has been serving the Alaska market for more than thirty-five years, in 2018 it updated its brand to Klondike Promotions to “better reflect the services” it offers to its more than 400 accounts country-wide.

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38 | July 2019

Alaska Business www.akbizmag.com

Let Your Dreams Take Flight Financially, you know where you want to be in the next ten, twenty, or thirty years. At Cornerstone, we can help you structure your wealth in a way that lets you pursue your passions and enjoy the fruits of your labor. From strategic wealth and estate planning, to more abstract ideas like planning family vacations, we simplify time-consuming tasks so you can live the life youâ&#x20AC;&#x2122;ve earned. Invest a little time now to get more back later by calling Cornerstone Advisors.

BuildBeyond.com l info@buildbeyond.com l (907) 770-0658 l Anchorage, AK

THE BEST OF ALASKA BUSINESS AWARDS 2019

BEST VIDEO PRODUCTION COMPANY Brilliant Media Strategies

“We are a full service creative production company,” states Upper One Studios, which provides media production for graphic design, web development, and social media marketing in addition to video. “Upper One Studios can provide anything from a simple logo resolve or complex visual effects compositing to technical 3D animations.”

ST. ELIAS

goyuit.com

Brilliant Media Strategies reached a milestone last year when it celebrated serving Alaska’s marketing needs for more than fifty years. Having opened in 1968, the company says it was Alaska’s first advertising agency, and today it continues to “produce innovative marketing and communications tools” that target the client’s audience to reach them “at home, work, and play.”

40 | July 2019

upperonestudiosinc.com

Yuit Comms

brilliantak.com

DENALI

Upper One Studios

“We listen. Connect. Respect. Deliver.” is Yuit Comms’ holistic approach to communications. The company prides itself on foregoing “traditional agency silos [and] the moat between creative and client services.” Whether working on annual reports or a video campaign, Yuit is one team with many voices providing “creative and strategy that sing.”

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Alaska Business www.akbizmag.com

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Alaska Business

July 2019 | 41

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Alaska Business www.akbizmag.com

alasconnect.com

AlasConnect offers its clients managed IT services, business broadband, security and compliance, and business technology consulting. According to the company, “What sets us apart from everyone else is the strength of our relationships with our customers. We are there when you need us the most.”

Alaska Communications

GCI gci.com

alaskacommunications.com

Throughout forty years of providing services to the state, GCI has spent $3 billion investing in its comprehensive communications network: “We’ve partnered with businesses and organizations of all sizes, in a broad spectrum of categories, helping them fulfill their potential and reach even greater goals… We continue to innovate and expand an extraordinary Alaska network.”

DENALI

TRICARE® approved facility

“A trusted partner for businesses, Alaska Communications provides an extensive, secure, and reliable network for cloud-enabled IT services statewide,” the company says. Alaska Communications offers IT solutions to businesses supported by quality products, state-of-the-art technology, and decades of industry expertise. According to the telecommunications company, “With Business Internet you can expect more.”

FORAKER

Reaching Across Alaska, Helping Children, Supporting Families, & Touching Lives

A part of North Star Behavioral Health

Developing resilience & cultivating healthy futures

MISSION STRENGTH, RESILIENCY & HEALING

a part of North Star Behavioral Health

Arctic Recovery is an Intensive Holistic Treatment Program dedicated to individuals 18 and older in need of psychiatric treatment, detoxification and/or rehabilitation for substance abuse.

An inpatient treatment program for service members, veterans, service member dependents 18 years and older, and first responders.

• No Cost Assessment • Individual and Family Therapy • Recreational/Activity Therapy • Psychological Testing • Medical Care and Detoxification • 24 Hour Nursing and Medical Care • Medication Management and Education • Dietary Services and Nutritional Classes • Psychiatry • Group Therapy

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Arctic

1650 S. Bragaw Anchorage, AK 99508 TRICARE® approved facility

Alaska Business

July 2019 | 43

THE BEST OF ALASKA BUSINESS AWARDS 2019

BEST AlasConnect INFORMATION TECHNOLOGY ST. ELIAS PROVIDER

BUSINESS AWARDS 2019

Â© Upper One Studios | Jim Dorondo

44 | July 2019

Alaska Business www.akbizmag.com

Arctic Office Products arcticoffice.com Launched in 1946 as a small business, Arctic Office Products today boasts more than eighty-five associates who provide Alaska with office furnishings and supplies. “When you need to upgrade or replace the furniture in your office, count on our expertise to create a beautiful office space that inspires a functional workplace environment,” the company states.

ST. ELIAS

Bailey’s Furniture

Scan Home

baileysfurniture.com

scanhome.com

In addition to an expansive selection of home furnishings, Bailey’s Furniture offers a range of solutions to meet the needs of any business, including desks, tables, chairs, shelves, cabinets, hospitality seating, and more. Bailey’s also caters to businesses in rural Alaska through an exclusive partnership with Everts Air Cargo to reduce shipping costs.

Established in 1983, Scan Home’s founders shared a dream of bringing Scandinavian furniture to the Alaska market. Today the company’s mission is to bring contemporary furniture from around the world to Alaskan customers—including Alaska’s businesses through supplying bookcases, conference tables, desks, chairs, file cabinets, and other office furnishings.

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Alaska Business

July 2019 | 45

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BEST OFFICE FURNITURE STORE

THE BEST OF ALASKA BUSINESS AWARDS 2019

BSI BEST COMMERCIAL REAL ESTATE ST. ELIAS FIRM

bsialaska.com

Baker Spoerhase Investments (BSI) has built a name based on “client satisfaction and loyalty,” the company states. BSI works with clients from beginning to end, including site selection, negotiations, acquisition, and closing. The company also provides business consulting in addition to commercial real estate sales and leasing and property management.

Keller Williams Jack White Commercial kwalaskagroup.com jackwhitecommercial.com

Jack White Commercial offers commercial, commercial lease, business operations, and land listings to help Alaska’s businesses find the right property. “Our growth and evolution is a testimony to our success with satisfying the needs of our customers… giving exceptional service and creating customers for life.”

DENALI

The Keller Williams vision is “to be the real estate company of choice.” The company’s belief system is built on integrity, commitment, communication, creativity, teamwork, trust, success, putting customers first, and making sure every deal is win/win—or there’s no deal at all.

FORAKER

46 | July 2019

Alaska Business www.akbizmag.com

THE BEST OF ALASKA BUSINESS AWARDS 2019

Alaska Regional Hospital alaskaregional.com

BEST HOSPITAL

Alaska Regional Hospital saw its start in Downtown Anchorage in 1963, moving to its current location in 1976. “For more than fifty years Alaska Regional has been fulfilling the medical needs of Alaskans, continually improving the scope of services and skills available within the state,” including pet therapy, surgical robots, and programs to treat drug-dependent newborns.

ST. ELIAS

Providence Alaska Medical Center

Alaska Native Medical Center

alaska.providence.org

anmc.org

Providence’s roots in Alaska were planted in Nome in 1902 during the Gold Rush. “This pioneering spirit set the standard for modern healthcare in Alaska and formed the foundation for Providence’s growth as the state’s leading healthcare provider.” Today Providence provides healthcare to Alaskans in Anchorage, Eagle River, Kodiak, the Matanuska-Susitna Valley, Seward, and Valdez.

The Alaska Native Medical Center was established in 1953 as the Anchorage Medical Center to care for Alaska Natives suffering from tuberculosis; in 1998 ownership of the facility was transferred to the Alaska Native Tribal Health Consortium and Southcentral Foundation. Today the Alaska Native Medical Center “has become a world leader in healthcare where advanced technology meets human caring.”

DENALI

48 | July 2019

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THE BEST OF ALASKA BUSINESS AWARDS 2019

A Heartfelt Thank You! www.akbizmag.com

Alaska Business

July 2019 | 49

THE BEST OF ALASKA BUSINESS AWARDS 2019

Primary Care Associates

BEST HEALTH CLINIC

primarycareak.com The practitioners at Primary Care Associates have received more than fifty-eight awards for care and community service. According to the organization, “One of the most important relationships you will ever develop will be with a primary care physician you trust.” Primary Care Associates has strived to earn that trust over three decades of service in Alaska.

ST. ELIAS

Medical Park Family Care

Independence Park Medical Services

mpfcak.com Medical Park Family Care is locally- and doctor-owned and takes “great pride in bringing the finest medical services necessary for a high level of care for our patients.” The organization’s twenty-three care providers offer services such as a diabetes care center, physical and massage therapy, occupational health, sleep studies, and behavioral health.

DENALI

ipmsak.com The team of medical providers at Independence Park Medical Services specialize in family practice and minor emergencies; women’s health, obstetrics, and gynecology; and physical and sports therapy. “At Independence Park Medical Services, you and your family are our first priority… we are here to offer you continuity of care for your entire family.”

FORAKER

AVAILABLE NOW! A COFFEE TABLE PHOTO BOOK OF ALASKA’S NORTH SLOPE OIL PATCH

PICK UP YOUR COPY TODAY! 511 W. 41st Ave, Suite 101, Anchorage, AK 99503 (907) 258-4704 judypatrickphotography.com Also available in bulk quantities!

50 | July 2019

Alaska Business www.akbizmag.com

THE BEST OF ALASKA BUSINESS AWARDS 2019

ALASKA EXECUTIVE SEARCH

ALASKA EXECUTIVE SEARCH STAFFING AND RECRUITMENT

It is our mission to provide you with a candidate that embodies quality, integrity, and leads the vision of your company.

Let us help you! Call today 907-276-5707 | akexec.com

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Alaska Business

July 2019 | 51

THE BEST OF ALASKA BUSINESS AWARDS 2019

BEST FLORIST Bagoy’s Florist & Home bagoys.com To the Bagoy’s staff, the “floral business is one that creates a connection between people.” What began in 1922 as a backyard greenhouse supplying John and Marie Bagoy’s family with vegetables has flourished into an award-winning florist that provides “bright blooms, cheerful baskets, colorful balloons, and more.”

DENALI

Hummel’s Flowers anchorage-ak-hummelsflowersinc.quickflora.com Hummel’s Flowers offers businesses and individuals alike “only the freshest, highest quality flowers and creative floral designs that spark your imagination.” The company delivers arrangements for virtually any occasion with the pledge to go beyond every client’s expectations.

ST. ELIAS

Oopsie Daisy oopsiedaisyalaska.com Bright blooms, exotic arrangements, and gourmet gift baskets are a few of the offerings from Eagle River-based Oopsie Daisy. The familyowned and –operated business has been in operation for more than twenty years providing in-store options and deliveries to Eagle River, Chugiak, and parts of Anchorage.

FORAKER

Images © O'Hara Shipe

52 | July 2019

Alaska Business www.akbizmag.com

Peppercini’s Deli & Catering alaskadeli.com Peppercini’s Deli & Catering has been providing Anchorage’s business community with “fast, fresh, and affordable” lunch options since 2007. The company philosophy is “working hard and treating people right.” Peppercini’s gives back through partnerships with the American Diabetes Association, the American Red Cross of Alaska, the Anchorage Jingle Bell Run/Walk, and Hope Community Resources.

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BEST CATERING/ DELIVERY Sweet Caribou sweetcaribou.com Sweet Caribou is an Alaskan family patisserie. The company prides itself on using high quality, locally-sourced ingredients to create artisan desserts and lunch bowls from scratch. The company says, “We believe in top-shelf service to our clients and community. We donate to local organizations addressing causes such as childhood hunger and poverty.”

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Dianne’s Wild Fork Catering cateringanchoragealaska.com The team of professionals at Dianne’s Wild Fork Catering serves “fresh, delicious, and creatively displayed feel good food” to corporate clients, open houses, and life celebrations throughout Anchorage. Whether for a breakfast meeting or an upscale after-work light appetizer, Dianne’s delivers and sets up everything needed for a successful catered event.

ST. ELIAS

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Alaska Business

July 2019 | 53

THE BEST OF ALASKA BUSINESS AWARDS 2019

BEST BUSINESS LUNCH

Kinley’s Restaurant kinleysrestaurant.com Kinley’s Restaurant offers corporate clients a luxurious lunch experience. James Beard Award nominee, certified sommelier, chef, and owner Brett Knipmeyer’s menu is filled with delectable delicacies guaranteed to impress even the most sophisticated palate.

ST. ELIAS

Moose’s Tooth Pub & Pizzeria

Spenard Roadhouse spenardroadhouse.com

moosestooth.net Moose’s Tooth Pub & Pizzeria’s goal is to “offer a truly gourmet pizza experience, focusing on creative, high-quality food in a casual environment.” It’s a goal that the beloved Anchorage pizzeria meets over and over again according to reviews from its huge fan base and the many awards it’s garnered over the years.

DENALI

Spenard Roadhouse serves contemporary comfort food in a “casual, eclectic” setting. Billed as a neighborhood gathering place, the restaurant welcomes families and friends to come by and enjoy its food, local beers on draft, and perhaps even a flight of small batch bourbon, among other delights.

FORAKER

54 | July 2019

Alaska Business www.akbizmag.com

49th State Brewing Company 49statebrewing.com If it’s beer you’re after, 49th State Brewing Company is the place to be. 49th State enjoys a long tradition of brewing, producing award winning beer. It’s the ideal spot to choose a craft beer on tap and enjoy an appetizer made from freshly sourced Alaska products while relaxing on the rooftop patio overlooking Cook Inlet.

DENALI

Broken Tooth Brewing brokentoothbrewing.net As Broken Tooth Brewing says, “Variety is the name of the game, and the brewers of Broken Tooth do not disappoint.” In 2016 alone the company made seventy-three different craft beers. The actual brewery is located in the Ship Creek port and has earned two gold and six bronze medals from the Brewers Association’s Great American Beer Festival, as well as silver and bronze medals from the World Beer Cup.

ST. ELIAS

Midnight Sun Brewing Co. midnightsunbrewing.com Midnight Sun Brewing is world renowned for its barrel-aged stouts and barley wines, beers that are appropriate for Alaska’s less-thantemperate climate and long dark winter nights, the company says. Its core brands include IPAs and Belgian ales for the rest of the year when it seems the sun never sets.

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Alaska Business

July 2019 | 55

THE BEST OF ALASKA BUSINESS AWARDS 2019

BEST BREWERY

THE BEST OF ALASKA BUSINESS AWARDS 2019

WHEN IT COMES TO

COMMERCIAL

LENDING NOBODY KNOWS ALASKA BUSINESSES

BETTER Find the tools to succeed at go.alaskausa.org/business

56 | July 2019

Alaska Business www.akbizmag.com

Sushi Ya aksushiya.com Sushi Ya offers sushi and Japanese cuisine “the way it should be,” the restaurant says. From the delicious Delicato Roll to S.M.T. (Scallop. Mayo. Tobiko) and toro—marbled tuna that “melts in your mouth”—Sushi Ya serves fresh, original delicacies designed to satisfy the most discerning sushi lovers.

ST. ELIAS

Sushi & Sushi

Ronnie Sushi

sushiandsushiak.com

ronniesushi.com

Sushi & Sushi caters to sushi connoisseurs seeking a “superior upscale dining experience with an emphasis on quality sushi and customer service.” Diners enjoy a wide selection of sushi and sake from traditional Japanese sushi and dinner entrees to creative and delicious sushi rolls.

DENALI

TOP 49ERS

Ronnie Sushi offers Alaskan sushi lovers a modern dining experience with a family atmosphere. Owner and head sushi chef Ronnie Lee can be found at the sushi bar making his unique creations. Using his artistic background, Lee strives to make beautiful, aesthetically pleasing, delicious dishes. And based on customer reviews, he’s succeeding.

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July 2019 | 57

THE BEST OF ALASKA BUSINESS AWARDS 2019

BEST SUSHI SPOT

THE BEST OF ALASKA BUSINESS AWARDS 2019

BEST COFFEE SHOP Kaladi Brothers Coffee kaladi.com Since 1984 Kaladi Brothers Coffee has been helping Alaska wake up with high-grade beans and roasts. Kaladi Brothers stays true to its motto, “Made in Alaska, by Alaskans, for Alaskans,” by being a “catalyst for community” through contributing time and resources to the community and providing meeting places for people to come together, share ideas, and build relationships.

DENALI

SteamDot steamdot.com SteamDot is all about making great coffee. The company says it strives to deliver the freshest coffee possible by roasting nearly every day and “never, ever allowing coffee to sit out exposed to the elements.” SteamDot’s premier cafés in south Anchorage feature Alaska’s only “Slow Bar” with single cup, artisan coffee preparations.

ST. ELIAS

Black Cup blackcupak.com “Extraordinary Coffee. Best Served Black.” That’s how Black Cup describes its perfect cup of coffee. Black Cup’s mission is to place more emphasis on farm to cup transparency, roasting to promote origin characteristics, coffee education, and to deliver some of the world’s finest coffees to Alaskans. Job well done.

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58 | July 2019

Alaska Business www.akbizmag.com

BEST GROCERY STORE

carrsqc.com A staple for grocery shoppers, the Carrs/ Safeway chain of stores provides a wide selection of groceries, service delis and fresh bakeries, soup and salad bars, and seasonless produce including tomatoes from Israel and raspberries from New Zealand, thanks in large part to operating its own, and Alaska’s only, full-line food distribution center.

ST. ELIAS

Fred Meyer

Costco Wholesale

fredmeyer.com

costco.com

Fred G. Meyer founded his namesake store in 1922 with the vision of “giving his customers more reasons to shop in his store than in any other.” Thousands of customers and decades later, Meyer’s vision is still intact. Today, Fred Meyer stores offer some 225,000 items, all chosen to “help customers get more shopping done in one stop than at any other store.”

Costco may have started out in Southern California, but it’s found a huge fan base in Alaska. For more than forty years the company’s philosophy has remained the same: “Keep costs down and pass the savings on to our members.” For those in the market for groceries, beauty products, even clothes and furniture, Costco offers it all.

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July 2019 | 59

THE BEST OF ALASKA BUSINESS AWARDS 2019

Carrs/Safeway

THE BEST OF ALASKA BUSINESS AWARDS 2019

Planet Fitness

BEST GYM

planetfitness.com “It’s our goal to provide a clean, safe, welcoming environment for anyone who walks through our door, and all the equipment, amenities, and support you need once you’re here,” is how Planet Fitness explains its philosophy. With multiple membership options, Planet Fitness has a plan to help its members meet their fitness goals in a “Judgement Free Zone.”

ST. ELIAS

The Alaska Club

Body Renew Fitness

thealaskaclub.com When it comes to fitness and wellness, The Alaska Club offers it all: personal training, swimming, group fitness, spa amenities (including massage and skin treatments), and free child care. Fitness fans of weight training, yoga, or cardio will find what they need (including trainers of three experience levels—advanced, expert, and master) at The Alaska Club.

DENALI

60 | July 2019

bodyrenewalaska.com Body Renew Alaska’s goal is to “help each person who comes through our doors be successful in reaching their health, weight loss, and fitness goals.” Body Renew offers personal training, group classes, and all the equipment needed to help its members get their blood pumping.

FORAKER

Alaska Business www.akbizmag.com

hairplayak.com

BEST HAIR SALON

Hairplay Salon’s mission is to provide services and products that make its clients feel and look their best, while making every visit a memorable experience for each guest with “passion and professionalism.” Hairplay Salon’s professional team of stylists offer a wide variety of hair services from “traditional to funky.”

ST. ELIAS

Allure Day Spa & Hair Design

The Loft Hair Design theloftak9220.com

allurehairdesign.com Along with being a Best of Alaska Business winner, Allure Day Spa & Hair Design was also voted a Top Five Salon in America by Salon Today. Its highly trained, professional staff provide a full range of salon and spa services with the goal of giving every client a “wow” experience.

DENALI

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Owned and operated by its “Lofties,” aka the stylists, The Loft Hair Design is dedicated to taking care of its clients from the moment they step through the door until the minute they leave. Promising to “leave you feeling beautiful,” the Loft’s stylists will “transform you into your very best self.”

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Alaska Business

July 2019 | 61

THE BEST OF ALASKA BUSINESS AWARDS 2019

Hairplay Salon

THE BEST OF ALASKA BUSINESS AWARDS 2019

BEST FUNDRAISING ENDEAVOR Covenant House: Fire & Ice Ball covenanthouse.org Covenant House has been offering sanctuary, services, and support to Alaskan youth for the past thirty years. The organization’s annual Fire & Ice Ball is an opportunity to don a gorgeous gown or tailored tux for a great cause. As Covenant House says, “Covenant House Alaska’s Fire & Ice Ball is an elegant black-tie event filled with glamour, fun, and philanthropy.”

DENALI

Bean’s Café: Empty Bowl Project beanscafe.org The Bean’s Café mission is to “provide a warm place where those in need can find comfort, warmth, and a helping hand.” To further that mission, every year Bean’s Café hosts the Empty Bowl Project, during which event-goers have the chance to support an incredible cause while enjoying homemade bean soup from a wide variety of chefs out of handcrafted bowls.

ST. ELIAS

The American Heart Association: Go Red for Women heart.org/en/affiliates/alaska/anchorage “It’s no longer just about wearing red; it’s no longer just about sharing heart health facts. It’s about all women making a commitment to stand together with Go Red and taking charge of their own heart health,” says the American Heart Association about its signature women’s initiative, the Go Red for Women luncheon and community movement.

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62 | July 2019

Alaska Business

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Ti c k et s $ 35 P ur c ha s e O nl i n e at a k bi zma g.c o m/ BOA B20 19

BEST CORPORATE CITIZEN

Thank You Tastee Freez has been operating in Alaska for more than sixty years, and for sixty years the eatery and treat shop has built up the community it serves, including beautifying the neighborhood and raising funds when a fire destroyed the homes of the company’s residential neighbors. In 2014, ConocoPhillips Alaska donated $6 million to 400 nonprofit groups in the Last Frontier, and the corporation’s employees donated more than 6,000 hours of their time to support their fellow Alaskans.

No matter the scale, when businesses get involved, it matters: It matters to every child who gets to play a sport, all the students who can pursue their educational dreams, and every neighbor to whom a hand was extended in a time of need. Our readers voted for the companies they see giving back to their communities day in and day out, and in the end the counts were too close to call. The Alaska Business editorial team selected, in no particular order, three standouts based on our knowledge of their efforts in corporate citizenship and the feedback of our readers. We also included here a list of every organization our readers voted for—whether it was one vote or hundreds, your work is noticed.

Images © O'Hara Shipe

64 | July 2019

Alaska Business

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FROM OUR READERS:

bp.com

“Though a global powerhouse… [Alaska Airlines] still are the first to donate to a charity and support Alaskans. I have never received a, ‘No, we can't do that this year.’ And it is so inspiring.“

More than 700 community and educational organizations benefit from BP’s employee contributions, as well as more than 230 youth teams in Alaska. BP supports its workers in these efforts through matching donations, volunteer hours, and fundraising. Last year, BP provided upwards of $3.5 million to support Alaska communities. BP supports teachers and students through scholarships and its BP Teachers of Excellence program, which recognizes the outstanding teachers at elementary, junior, and senior high school levels.

EDITOR’S

PICK

Credit Union 1 cu1.org Through its #CU1LUV campaign Credit Union 1 is leading change, uplifting others, and valuing people. The bank offers several initiatives to build communities statewide, including GoodCoin through which people give back to local charities through an online donation; Leading Change Fund, the proceeds of which directly benefit Alaska; Uplifting Others Fund, which donates to Alaskans in need when clients finance a loan; and the Valuing People Volunteer Program, through which Credit Union 1 organizes employee volunteer opportunities.

EDITOR’S

PICK

GCI gci.com GCI has provided more than $10 million in cash, in-kind donations, scholarships, and grants to Alaska organizations over the past five years. GCI is passionate about addressing Alaska’s high suicide rate, which is more than twice the national average. The GCI Suicide Prevention Fund, with the help of the Alaska Community Foundation, awarded a combined total of $100,000 to nine recipients in 2017. Due to its success in 2017, GCI continued the program in 2018, contributing another $100,000.

EDITOR’S

PICK

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“[Alaska Regional Hospital] involves themselves in community events and offers free health clinics and services to the community.” [Arctic Slope Regional Corporation] provides thousands of jobs in Alaska, supports local causes, and maintains connections to their lands and culture.” “[ConocoPhillips Alaska] continues to invest and reinvest in our community in a very responsible way. They are also very generous.”

“[MTA’s] involvement in the community has contributed to economic development in STEM all over Alaska.“ “Parker, Smith & Feek has always been a frontrunner for philanthropy and charitable contributions and promotes a culture of honesty and respect.” “[Subway of Alaska] donates to just about every event and company and has five School Business Partnerships in Anchorage.” “Upper One Studios makes professional marketing services available to local Alaska businesses that wouldn't normally be able to afford them.”

HONORABLE MENTIONS: • 49th State Brewing Company • Anchorage Economic Development Corporation • Advanced Physical Therapy • Ahtna • Alaska Airlines • Alaska Communications • Alaska Executive Search • Alaska Mill Feed and Garden Center • Alaska Regional Hospital • Alaska Women’s Environmental Network • Anchorage Chamber of Commerce

Alaska Business

• Arctic Slope Regional Corporation • Behavior Matters • Brilliant Media Strategies • Champ Martial Arts • ConocoPhillips Alaska • First National Bank Alaska • Fred Meyer • Grace Christian School • Hilcorp Alaska • Kaladi Brother's Coffee • Littler Mendelson • Matson • MTA • Northrim Bank

• Parker, Smith & Feek • PDC Engineers • Peppercini’s Deli & Catering • Rotary Club • Siemens Building Technologies • Sitnasuak Native Corporation • Skinny Raven Sports • Southcentral Foundation • Stantec • Tastee Freez • United Way of Anchorage • Upper One Studios

July 2019 | 65

THE BEST OF ALASKA BUSINESS AWARDS 2019

BP Alaska

E D U C AT I O N

MTA partnered with Eagle River Robotics to create an engaging Tech Day at the 2018 Alaska State Fair. MTA

Those Who Can Do Teach Businesses supporting education By Vanessa Orr

hether Alaskan students want a career in coding, to run high-tech mining equipment, work as a bank administrator, or transport goods across the country, having the proper education can play a huge part in their success. And considering that many of these students will stay in Alaska and work for local companies, it makes good business sense for these organizations to take part in the learning process. This support can take a number of forms, from mentoring and internship opportunities to financial donations that establish scholarships and programs to 66 | July 2019

Journeymen Lloyd Nieman gives a fiber demonstration at Snowshoe Elementary PTAâ&#x20AC;&#x2122;s STEM and Soup Expo. MTA

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MTA participating at the WHS Tech Expo showcasing e-sports in a learning environment. MTA

“By getting involved

Tech finds opportunities. Alaskans fill the pipeline.

with students and empowering them with the technology they need, it creates more customers for us in the future and the opportunity to recruit really talented people from our own community.”

A state-of-the-art 3D seismic survey will support the production of the next 1 billion barrels of oil at BP’s Prudhoe Bay—extending the life of the field and bringing more opportunities to Alaskans.

CMY

—Jessica Gilbert Marketing Specialist, MTA

facilitating classroom lectures. No matter how a business chooses to participate, schools value the partnerships that help them prepare the workforce of the future. And businesses also benefit from their involvement. “We get as much out of our relationship with the Mat-Su School District as they get from us,” says MTA Marketing Specialist Jessica Gilbert. “The staff provides a lot of great ideas, and it enables us to have a dialog with community members. By getting involved with students and empowering them with the www.akbizmag.com

Alaska Business

July 2019 | 67

“Students often find that what they’ve read in books doesn’t always work in the real world; it’s good to hear from people who have been in the trenches. Partnering with the business community does this.” —Ray Rose VP of Institutional Advancement, Alaska Bible College

Drew Bryant, an Alaska Bible College graduate, prepping for take-off in a Kingdom Air Corps aircraft. Alaska Bible College

technology they need, it creates more customers for us in the future and the opportunity to recruit really talented people from our own community.” While there are many positives associated with book learning, having industry experts come into the classroom gives students real-life perspectives. At Alaska Bible College located in Palmer, for example, members of the business community visit classes about once a month to share their experiences. “We’ve had state senators come in to

Drew Bryant stands in front of a Kingdom Air Corps aircraft that he used for flight training. Alaska Bible College

68 | July 2019

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talk about politics, as well as financial leaders sharing insights on church management,” says Ray Rose, vice president of Institutional Advancement at Alaska Bible College. “I believe that you need to have real-world people teaching students and not just academics. “When you have teachers who have been there and done that, you get a totally different perspective,” he adds. “Students often find that what they’ve read in books doesn’t always work in the real world; it’s good to hear from people who have been in the trenches. Partnering with the business community does this.”

Creating a Curriculum In many cases, businesses work not just with students but with school administrators to guarantee that every young scholar learns real-life business skills. “We are highly connected to industry and partner with all sorts of businesses on the North Slope, including Arctic Slope Regional Corporation [ASRC] and Ukpeaġvik Iñupiat Corporation [UIC] in Barrow, as well as the North Slope Borough and forty-five other agencies,” says Arth Brown III, dean of Vocational Education and Workforce Development,

Il·isaġvik students completing the Class A CDL course. Il·isaġvik College

Il·isaġvik College. “They help direct and support our programs and take part in a roundtable industry advisory board to make sure that our needs align. “We want to know what these industries require, because we don’t want to offer trainings that won’t get

our students employed,” he adds. “Their influence and participation in the education system ensures that our students are ready to go to work. They don’t have to retrain them starting on day one.” As Alaska’s only tribal college, Il·isaġvik’s mission is rooted in Iñupiaq values and it

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Students set up containment bags while earning their Asbestos Worker Certification at Il·isaġvik College. Il·isaġvik College

serves the workforce needs of the region and the state, offering multiple associate degrees as well as a bachelor’s degree in business management. The college provides workforce training to approximately 2,000 students each year. “ASRC offers support in so many ways, including helping to fund our drivers’ licensing in the villages project that helps students get their restricted off-system drivers’ licenses in the village before coming to campus to earn their full, unrestricted commercial licenses,” says Brown. “We completely restructured our CDL program because of their influence.” Instead of a six-week course, Il·isaġvik now offers the CDL class in one-, two-, and then three-week sections so that nontraditional students can attend with no disruption to family and community commitments. The University of Alaska Southeast (UAS) also works in partnership with different industries to make sure that its professors are teaching what businesses need. “We don’t want to be providing antiquated information that businesses don’t use anymore; for example, it’s 70 | July 2019

important that students in our mine training program understand robotic technology because the industry has become much more automated than in the past,” says UAS Provost Karen Carey. “We want businesses to help us as we develop our curriculum so that in the end, they will be hiring our students. “While some students come to college to get an education, most students today come to school to get a job,” she says. “We want to make sure that when they graduate, they are prepared for the career they want.” In addition to providing UAS with $300,000 for three years to train students in its Pathway to Mining Careers program, staff from Hecla Mining Company’s Greens Creek Mine visit classes to help with student training, and the company offers job shadowing opportunities. “A presenter might give a lecture on safety or the newest equipment or what to expect when a person first comes to work,” says Carey. “A lot of students are interested in hearing about what the work is really like from someone who is actively in the field.” No matter what degree or certification

a student is pursuing, there are usually businesses willing to help. UAS works with companies ranging from Vigor Alaska and Northrim Bank to the US Coast Guard and NOAA. “In our outdoor studies program, students can intern as guides during the tourist season and, once they graduate, apply for full-time jobs,” says Carey. “We have a partnership with the Alaska Marine Highway System [AMHS] where we offer training in all things maritime on our Ketchikan campus, and AMHS hires our students to run ferries and other vessels. We also have a great relationship with the Coast Guard; there are numerous opportunities available to students, depending on what they want. Since the Coast Guard is a major employer in Southeast, this is a huge advantage.”

Monetary Gifts and In-Kind Services While many businesses support schools monetarily, others offer discounts or inkind services that can provide students with opportunities they otherwise couldn’t afford. “About 54 percent of our student

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Jaeleen Kookesh, Sealaska VP of Policy and Legal Affairs, speaks at the Student Alumni Association Business Etiquette dinner at the University of Alaska Southeast.

Ashley Snooks from Spruce Root speaks at the Student Alumni Association Business Etiquette dinner at the University of Alaska Southeast.

UAS

tuition comes from scholarships, grants, and gifts, and roughly 60 percent of that is provided primarily by successful business owners,” says Rose of Alaska Bible College’s benefactors. For example, the college partners with Kingdom Air, which donates most of the airtime the school uses for training pilots. “Typically, teaching someone to fly a plane runs around $175 to $225 an hour; Kingdom trains our student pilots for the cost of gas, or about $50 an hour,” says Rose. “Students can train to be private or IFR-rated pilots at a very low cost,” he adds. “We do the ground school and Kingdom does the air portion, and our students get real-world experience that allows them to fly anywhere in the world.” MTA Solutions has been partnering with schools since it opened its doors in the 1950s but is now working more strategically to align its participation with its mission of being tech-forward. “We have created partnerships with every school in our service area whether through formal outreach programs like the MTA Coding Academy at Wasilla Middle School or through less formal means like providing internet safety presentations at Sherrod Elementary School,” says Gilbert. “We’ve even worked with some schools out of our service area—we recently partnered with Apple to do a presentation on coding in Wasilla and Juneau, and we’re planning another presentation in Fairbanks.” MTA established its Coding Academy at Wasilla Middle School in 2015 with the goal of teaching students about coding and building computers. “It’s a very exciting program; every student has the chance to take part in the Coding Academy, whether they are www.akbizmag.com

“While some students come to college to get an education, most students today come to school to get a job. We want to make sure that when they graduate, they are prepared for the career they want.” —Karen Carey Provost, University of Alaska Southeast

already passionate about technology or want to explore their interest,” says Gilbert, adding that MTA is in the process of expanding the academy throughout the Mat-Su School District this year and expanding to other school districts in 2020. MTA also partners with schools as part of their eUnlimited brand, providing consulting services to high schools and colleges, such as the University of Alaska, that want to ramp up their e-sports efforts. “We are currently consulting with schools to share our experience and to help them to get organized, and this has resulted in all of the schools that we work with getting ASAA [Alaska Student Athletic Association]-sanctioned,” says Gilbert. The company runs an eUnlimited Alaska Business

gaming series throughout the year, culminating in a family-friendly tournament where students can compete for cash and prizes. “We partner with schools to take part in speaking engagements to talk about what e-sports is doing for the community,” says Gilbert. “And the tournament is a great networking activity that lets young gamers engage with those making a career out of e-sports, as well as communicate with our sponsors.” In order to make sure that everyone has equal access to technology, MTA established Education Unlimited a few years ago to offer the Mat-Su School District and Eagle River school students and staff their products at lower prices. “In this digital age, all homework is done online, so we wanted to make sure that they had access to great broadband,” says Gilbert. The company has also provided scholarships for a number of years, including ones focused on students pursuing STEM and young women pursuing an education in technology. “One of our youth coding initiatives, Girls Who Code, is a national program that we sponsor as a summer camp in the Valley,” says Gilbert. “This year, a lot of different women who work at MTA will be sharing their stories of how they use coding at work.” By becoming involved with students who want to explore technology long before they enter the workforce, MTA says it is providing opportunities as well as priming the future workforce. “We want to keep good students in Alaska and hire them at local companies, including MTA,” says Gilbert. “We know that it works; many of our interns have stayed with MTA for their entire careers and continue to be leaders in the company.” July 2019 | 71

OIL & GAS

Oil & Gas Legislative Update

Federal policies in the spotlight in 2019 By Tasha Anderson

hile in past years oil and gas legislation has dominated discussions in the Alaska Senate and House of Representatives, for the 72 | July 2019

2019-2020 session Alaskans have dialed in on our legislators wrestling primarily with how to handle the Permanent Fund Dividend, rising crime rates, and a long-overdue resolution and plan of action for the state’s budget, among other issues. Although oil and gas tax policy conversations aren’t making headlines in Alaska this year, they’re ongoing. According to an op-ed by Alaska Oil and Gas Association (AOGA) President and CEO Kara Moriarty, “Given the tough budget conversation

underway in our state, it’s not surprising that some people are once again trying to put oil taxes in the spotlight.” Alaska has seen more than seven oil and gas tax policy changes in the last fourteen years, and under the ACES tax regime oil production declined by approximately 169,000 barrels per day. With the passage of SB21 in 2014 and a relatively unchanging tax environment since, oil production stabilized and even increased, despite the plummet of oil prices during the same time

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period. According to Moriarty, “Thanks to significant investment focused on more production, North Slope production actually produced 518,000 barrels per day for fiscal 2018, an increase of 75,000 barrels per day over what had been predicted [in the fall of 2012]. More production means more revenue for the Permanent Fund and key essential services—a win for all Alaskans. “We understand oil tax policy is complex and hard for even seasoned experts www.akbizmag.com

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Arctic OCS In a disappointing turn of events for those interested in offshore exploration, in March US District Judge Sharon Gleason issued a ruling that President Donald Trump’s Executive Order 13795—an attempt to revoke then-President Barack Obama’s decision in 2015 and 2016 to withdraw 125 million acres in the Beaufort and Chukchi Seas from oil and gas leasing—was unlawful, reinstating Obama’s orders. According to Alaska District Court Sets Aside Rulings Under New Administration’s EO 13795 by Anthony B. Cavender,

The 1002 area of ANWR. The US Department of the Interior anticipates holding an ANWR lease sale in 2019.

Governor Mike Dunleavy voiced his disappointment at the ruling, stating, “Alaska’s potential offshore oil and gas deposits, if given the opportunity to be safely and responsibly developed, can create jobs, revenue, and economic opportunity for decades. One president should not have the power to lock up Alaska’s resources in perpetuity.” This sentiment was echoed by US Senator Lisa Murkowski, who said: “I strongly disagree with this ruling, which asserts that past presidents can bind their successors and only Congress can overturn those decisions… That is not the correct interpretation of the Outer Continental Shelf Lands Act and could

USGS

to understand. But the key takeaway is that our current tax structure is performing. While the state has huge issues to resolve this year, the standard oil tax fallback isn’t the answer.” Fortunately Alaska’s legislators aren’t currently pushing oil and gas tax initiatives, but recent policies affecting the Alaska oil and gas industry have instead originated at the federal level, stirring both optimism and frustration regarding oil and gas exploration activities in the Last Frontier.

handed us a decision that has really compromised our ability to bring a lot of new resources to the table here in Alaska,” Balash said. “Taking the entire Chukchi [Sea] Planning Area off the table means the bang-for-the-buck here in the Alaska region is not what we had really been counting on… We have a lot of work in front of us before we’re going to know exactly what the future holds here for the Arctic OCS,” he stated. What’s particularly disheartening is that the potential for oil and gas development in offshore Alaska is both known and significant. In an editorial roundtable discussion with American Petroleum Institute President and CEO Mike Sommers,

“We understand oil tax policy is complex and hard for even seasoned experts to understand. But the key takeaway is that our current tax structure is performing. While the state has huge issues to resolve this year, the standard oil tax fallback isn’t the answer.” —Kara Moriarty, President and CEO, Alaska Oil and Gas Association

“Section 12 (a) of the OCSLA states that: ‘The President of the United States may, from time to time, withdraw from any disposition any of the unleased lands of the Outer Continental Shelf.’ However, there is no provision in the OCSLA that mentions revoking an earlier withdrawal. The District Court believed the language to be clear on its face, but since there may be some ambiguity in the law because of the use of the phrase, ‘from time to time,’ the District Court reviewed other laws, rulings made by the attorney general over the years, and the Act’s legislative history, and concluded that the president was without authority to revoke these earlier presidential actions, which perforce, ‘will remain in full force and effect unless and until revoked by Congress.’” 74 | July 2019

have catastrophic impacts for offshore development, which creates jobs, generates revenues, and strengthens our national security. I expect this decision to be appealed and ultimately overturned—if not by the Ninth Circuit, then by the Supreme Court.” Joe Balash, assistant secretary for land and minerals management for the US Department of the Interior, stated during a presentation at the AOGA Conference in late May that an appeal of the ruling was filed and legal briefs were being prepared. According to Balash, the ruling impedes an “ambitious” five-year plan to make more of the Outer Continental Shelf (OCS) available for leasing countrywide. “Unfortunately, Judge Gleason

he explained, “One of the things that we know through all the testing that’s already been done in the Beaufort and Chukchi Seas is that resource is tremendous, and we actually would expect, once those resources are developed, that it’s going to be more oil in that area than we’ve seen in the Atlantic or Pacific combined.” According to the US Department of the Interior, the Beaufort Sea and Chukchi Sea together contain an estimated 23.6 billion barrels of oil and more than 104 trillion cubic feet of natural gas. According to a release from Murkowski’s office, “Responsible development in the Arctic could also help states such as California reduce their foreign imports, which have grown significantly as Alaska production has declined.”

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Sommers continued on to say that this decision about OCS exploration in Alaska also has a direct effect on oil and gas exploration in the Lower 48, delaying work on the Trump Administration’s fiveyear plan for the Gulf of Mexico and the Atlantic until the issue has been resolved in court. “We’re hopeful that the appeal is successful and we can get that issue behind us and start continuing to provide the energy security that American consumers expect,” Sommers stated.

ANWR On the other end of the spectrum, at the end of 2017 a decades-long struggle to open the Arctic National Wildlife Refuge (ANWR) for oil and gas development came to fruition as 1.5 million acres in the 1002 area along the coast were made available for leasing for energy exploration, spurring optimism in the industry. And though that was a significant milestone capping the hard work of many Alaskans, it was just the beginning of the process for development in ANWR. During his presentation at the AOGA Conference, Balash explained that the opening of ANWR coincided with his confirmation to his current position.

“And the reward for that was the Secretary sitting me down on my second day and saying, ‘Guess what? Congress has given the department a new job, and it is now your personal responsibility to make sure we have a lease sale.’” So far Balash is succeeding in moving the process forward, as the US Department of the Interior published a Draft Environmental Impact Statement (EIS) in December and completed gathering public feedback and comments on that document in March. “We received more than a million comments” regarding the issue, and “after going through and coding the comments, there were about 2,500 specific issues that were raised in those comments that we have to address,” Balash reported. In May, Balash spoke with Canadian government officials to address their concerns about the Porcupine Caribou herd—protected by a US/Canada treaty, the herd migrates more than 1,500 miles every year between their winter range and calving grounds, spanning from the north coast of Alaska to the Yukon in northwest Canada—meeting an obligation on the department’s part to consult with the Canadian government about the herd.

Balash anticipates a final EIS, which will include any necessary changes stemming from public and key stakeholder feedback, will be published by the end of this summer. “Once we have a final EIS, we’ll be in a position to issue a record of decision and notice of lease sale, and that lease sale will happen in 2019,” Balash announced to a round of applause. “A number of people in this room spent time traipsing back to Washington DC to testify and support and try to convince people that yes, [ANWR] is a place that we can develop oil and gas and we can do it without upsetting the balance of wildlife that many people depend on,” Balash said. “I can tell you from the work that I do in other states with other delegations, even when there’s a unified perspective on the question of development, there’s not always a unified voice: there are competing agendas, competing voices as to how we should go about doing things. [But] when it comes to Alaska, there’s no daylight between our members, and that makes all the difference in the world when we’re trying to advance things that further Alaska’s future.”

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E N V I R O N M E N TA L

Cooking Dirt Reclamation facilities turn contaminated soil into clean material

By Vanessa Orr here’s no doubt that cleaning up Alaska’s contaminated soil is good for the environment. But

78 | July 2019

perhaps what’s even more interesting is that the process, and the resulting recycled materials, lessen the effects of air and water pollution and contribute to a more pristine state. While there are many ways in which property in Alaska can become contaminated, according to the Alaska Department of Environmental Conservation (DEC), the most common include home heating oil tanks; commercial and industrial operations releases including fuel handling and delivery; current and former dry cleaning businesses and other processes that use harsh chemicals;

current and former military bases; contaminants spilled during transportation; and releases from underground and aboveground fuel storage tanks. While soil that contains hazardous waste must be shipped out of state for treatment, soil that is contaminated with non-hazardous petroleum products can be treated either on-site in Alaska or at specialized treatment facilities. “No one in Alaska is certified to treat metals or PCBs or more nefarious chemicals that can be found in soils, so those materials are shipped to the Lower 48—usually to landfills in Washington or

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Oregon that can accept hazardous waste,” explains Kris Shippen, environmental coordinator for Alaska Soil Recycling (ASR), a division of Anchorage Sand and Gravel that has been treating petroleum-contaminated soils since the mid-1990s. “We are responsible for everything from treating soil brought in by a homeowner who spilled diesel in his backyard to contaminated soils caused by oil and gas industry operations.”

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provide that record to the department on a monthly basis. Spills may be cleaned up immediately or transferred to the Contaminated Sites Program for further review. Once a plan is in place, individuals and companies with petroleum-contaminated soils can transport them to approved facilities that provide thermal remediation to remove the contaminant and return the soil to a usable state. “It’s important to note that the soils we receive are treated through a thermal desorption unit and not an incinerator,” says Shippen, adding that this is a common misconception. “The process heats the soil to remove the contaminants but does not incinerate it, thus using much less fuel than incinerating technology.” Before soil can be accepted into a DEC-approved facility, it must first be tested to determine what it contains. Clients are required to certify that petroleumcontaminated materials are non-RCRA (US Resource Conservation and Recovery Act) or RCRA-exempt. “Before we even talk about bringing a load into the yard, we need to see the pre-characterization report to know what we’re dealing with—we know what we don’t want as well as what we can treat,” says Shippen. “We also need to know the size of the job; we take anything from five

“No one in Alaska is certified to treat metals or PCBs or more nefarious chemicals that can be found in soils, so those materials are shipped to the Lower 48—usually to landfills in Washington or Oregon that can accept hazardous waste.” —Kris Shippen Environmental Coordinator, Alaska Soil Recycling

gallons to a thousand tons or more.” According to Mark Sanford, manager of thermal remediation for OIT/NRC in Fairbanks, contaminated soil comes from all over the state. “Military bases and the oil industry are the main sources, but it can come from anywhere. We’ve cleaned soils that resulted from a truck tipping over to spills caused by a bullet hole in Alyeska’s trans-Alaska pipeline.” Organic Incineration Technology (OIT), acquired by NRC in mid-May, has been working with petroleum-contaminated soils for more than twenty-nine years. In that time, the company has remediated more than 1.5 million tons of soil,

absorbent pads, and sludge and treated a laundry list of items including absorbent booms and pads; used antifreeze and antifreeze absorbents; contaminated fuel; on-spec used fuel; POL paraffin, gravel, rust, soil, and water; rail cars and roll on/offs; supersacks; fish totes; drain sludge; non-asbestos POL insulation; wash bay soil; drums; POL sand trap sand; and more. Once clients test their soil and verify that it does not contain unacceptable materials, it can be brought to OIT/ NRC, or the company will send trucks to transport it. The material is weighed on a certified truck scale before being placed Alaska Soil Recycling’s mobile thermal desorption unit is designed to be operated by as few as two people. ASR

80 | July 2019

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Oversized materials are screened out of the soil prior to treatment. ASR

on a membrane liner in a two-acre storage and treatment area, part of OIT/ NRC’s sixty-acre facility, where it sits until processing. A six-foot chain link fence secures the area from animals and unauthorized personnel, and OIT/NRC also established a series of aquifer monitoring wells and implemented a comprehensive well testing program to ensure that the water table remains unaffected. Depending on the size of the job, clients may bring contaminated soil to ASR or the

company may go to them. “We have the only mobile unit in the state, so if the job is large enough to make it financially feasible, we can take everything from our site, put it on trucks, and drive it to a client’s location,” says Shippen, giving the example of a large Superfund clean-up site with thousands of tons of contaminated soil. “There are a lot of mitigating factors involved, including the time of year and also if the job would require us to be on-site for a couple months or more.”

“We’ve mobilized before, though it’s not something that we’ve really marketed,” adds Anchorage Sand & Gravel Vice President and General Manager Ryan Zins. “It’s based upon demand, and like any construction company, we look at our backlog and crew availability; we don’t [mobilize] to take care of a heating oil spill in someone’s backyard.”

Remediating Damage The most efficient way to treat petroleumcontaminated soil is to heat it. At OIT/NRC,

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Alaska Business

July 2019 | 81

Alaska Soil Recycling’s mobile thermal desorption unit. ASR

“Military bases and the oil industry are the main sources, but it can come from anywhere. We’ve cleaned soils that resulted from a truck tipping over to spills caused by a bullet hole in Alyeska’s trans-Alaska pipeline.” —Mark Sanford Thermal Remediation Manager OIT/NRC

soil is put into a high-temperature thermal oxidizer that is 50 feet long with an 8-foot diameter drum. Temperatures are kept between 900 and 1,500 degrees Fahrenheit in the primary chamber and between 1,700 and 2,100 degrees Fahrenheit in the secondary chamber to burn off the gas. “Unfortunately, landfarming like they do in the Lower 48 won’t work up here,” Sanford explains. “While New Mexico and 82 | July 2019

California can let materials bake away in the desert, that’s not going to work with Tanana silts. In Alaska, the season is also a real player in what we can do.” According to Sanford, the oxidizer remediates any level of hydrocarbon contamination while providing clean-up levels with air quality nearly five times cleaner than ADEC regulations. “Alaska Source Testing comes in once a year to test to make sure we are meeting all reg-

ulations,” he adds. In April, OIT/NRC became the first facility permitted to burn PFAs (per- and polyfluoroalkyl substances), which are used in industrial and residential applications and are found in a wide range of consumer products such as carpet treatments, non-stick cookware, waterresistant fabrics, food packaging materials, and personal care products. “PFAs are also found in the fire retardants used all over the country,” says Sanford, who added that the company received its first such materials from Eielson Air Force Base in May and expects to receive similar contaminants from Fairbanks International Airport and the City of Fairbanks, among other clients. Depending on the material, it can take anywhere from a few days to process contaminated soil to much longer. “In perfect conditions, you could treat 1,000 tons of soil in a few days,” says Shippen of ASR’s system, which pre-treats the soil at about 600 degrees and destroys the volatized vapors at approximately 1,600 degrees in a thermal oxidizer. “But if it’s really wet, it can take a lot longer

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because you have to heat the water before you can volatize the contaminants.” “Gravel runs better than sand, sand runs better than silt—and clay is the worst,” says Sanford. “Organics may also slow running time. The deciding factor on price is the moisture content and contamination level—the higher those are, the longer residence time in the kiln and the more it costs.” Moisture content definitely makes a difference—wash bay soil, which results from places like truck shops and fire stations washing their vehicles—can cost three times as much because there is so much water in the soil. “We can run three tons an hour if it’s wet, or eighteen tons an hour if it’s perfect material,” says Sanford. Depending on the time of year, there can also be a backlog, delaying how long it takes for a load of soil to be fully recycled. “Soil that comes in today will be processed six weeks from now because of what’s in front of it,” says Sanford. “Sometimes it takes a week or two depending on backlog.” Once it’s fired up, the OIT/NRC plant runs 24/7 for six to eight weeks, then shuts down for two days for maintenance. The

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season runs from May 1 to October 30. “We are limited by what we can do in winter because the material is frozen, which makes it very difficult to deal with,” says Sanford, adding that most maintenance is performed during colder months. “While we can run year-round, it is definitely more labor-intensive in the winter months, so we tend to stockpile material during that time of year and start burning it again in spring,” adds Zins.

The Finished Product After the soil has been remediated, it needs to be tested before getting the all clear. “We have a third party test our piles every week, and the information is shared with the state,” says Sanford. “Once it is certified as clean, you can do almost anything you want with it, short of using it in wetlands.” The company uses gravel to make sewer rock and adds clean peat to make topsoil or garden soil. “We sometimes get rocks the size of Volkswagens that we crush to make D1; anything three inches and up, we screen it, wash it, and sell it,” says Sanford of the recycled material.

Alaska Business

The company prides itself in taking a leadership role in protecting the environment, and even uses recycled fuel in the burning process. “We use about 2,000 gallons a day, and we purchase fuel from NRC made of used oil combined with virgin diesel in an 80/20 mix,” says Sanford. “We’re reusing a waste product to burn the contaminants out.” ASR also uses a third-party impartial consultant to test its finished product, and once given the go-ahead, sells or provides it free-of-charge to the construction industry as well as other buyers. “At that point, it has met Alaska’s most stringent criteria, so it is available for basically unrestricted use,” says Shippen. “The soils we generate are 95 percent compactable fill, which can be used in a variety of situations including for topsoil or for road projects.” “By offering a way to treat contaminated soils in-state, we’re lowering our carbon footprint because we don’t have to ship it out,” says Zins. “We’re creating a clean, recycled product that can be used in berms, building projects, for soil stabilization on hillsides, and more.”

July 2019 | 83

ENERGY

Energy Efficiencies Combat Costs

The surprising ways businesses can reduce energy consumption

By Isaac Stone Simonelli

t is a basic tenet of business that the cost of goods and services passed along to consumers, commercial or otherwise, is driven by operating costs and profit margin. As it does in so many other ways, Alaska deviates from this simplistic economic principle. Especially when it comes to energy. “Alaska has some of the highest costs of living in the country, particularly in rural Alaska. In the SBDC’s [Small Business Development Center's] annual survey of small businesses, operating costs were one of the top three barriers to business,” Alaska SBDC Executive Director Jon 84 | July 2019

Bittner says. “In smaller communities, that is driven largely by energy and the cost of transporting goods.” Bittner points out that, when energy costs more than $0.20 per kWh, it has a huge impact on what a business must charge its clients to break even, much less make a profit.

Costs Across Alaska For most of the more than 100 Alaska communities that are not directly connected to the rest of the state via road or rail, the cost of energy is significantly higher than in the state’s “urban” communities, as fuel must be brought in by airplane or barge. One major exception in Alaska is Anchorage, which primarily relies on natural gas for heat and power. “They use the Cook Inlet natural gas deposit. Their energy costs—per million BTUs—are actually below the median national cost,” says Nathan Wiltse, policy program manager and building energy

economist for the Cold Climate Housing Research Center. “There was an effective subsidy on natural gas for Anchorage with a production tax rate of 1 percent and additional credits. Between 2005 and 2015, their cost per million BTUs was half of the median national cost of energy per million BTUs. During that period the cost of energy in Fairbanks was between three and four times [depending on specific fuel mix] the cost of energy in Anchorage. Rural Alaska was two to three times the cost of Fairbanks.” Another exemption to a community reliance on fuel for power is in Kodiak, which is powered by renewable energy resources via the nonprofit Kodiak Electric Association (KEA). However, even Anchorage and Kodiak businesses still need to deal with the cost of keeping light and warm during the Last Frontier’s long winters. “Alaska is located in Climate Zones 6, 7, and 8. We have actually got a statedesignated Climate Zone 9 for things

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“Alaska is located in Climate Zones 6, 7, and 8. We have actually got a state-designated Climate Zone 9 for things north of the Brooks Range—it is just that cold.” —Nathan Wiltse Policy Program Manager and Building Energy Economist, Cold Climate Housing Research Center

north of the Brooks Range—it is just that cold,” Wiltse says. “With the heating season lasting eight months, Fairbanks has about 14,000 heating degree days. Communities north of the Brooks Range have about 20,000. Anchorage averages more than 10,000 heating degree days. Meanwhile, the coldest counties in the coldest states in the Lower 48 rarely get beyond 8,000 heating degree days and have a shorter winter.” The generally higher costs of energy, mixed with longer heating seasons, add significantly to overhead for businesses operating in Alaska. But such costs can be minimized through energy efficiencies.

Finding Information and Support “In places where the energy costs are the highest, obviously there is a much larger focus on bringing costs down. The difficulty is in getting the businesses and individuals in those communities the information and resources they need to understand what their options are,” Bittner says. Such resources include the Renewable Energy Alaska Project, the Division of Community and Regional Affairs, and the Alaska Energy Authority (AEA). “[They] and many others do a fantastic job of collecting and distributing information and resources across the state,” Bittner says. “That being said, Alaska is a huge area with a wide variety of needs, so it can be a challenge making sure that everyone is taking advantage of all of the opportunities available to them.” SBDC also provides a variety of support to businesses interested in exploring energy efficiency. “We can help with the cash flow modeling, provide information about a variety of state and federal programs, help businesses put together application packages www.akbizmag.com

for financing, and many other services,” Bittner says. He notes that the first step toward making energy efficiency gains is for businesses to understand the long term financial benefits of energy efficiency upgrades. “In some regions of the state, the easiest way to bring costs down is to focus on increasing efficiency. Elsewhere, using renewable energy systems or improving the local power system may make more sense,” Bittner says.

Energy Audit The next step for most businesses is getting an energy audit. The Cold Climate Housing Research Center launched a pilot project with the Denali Commission, Rasmuson Foundation, and Rural Community Assistance Corporation in 2014 with the goal of learning how to implement a self-sustained energy efficiency program that would provide comprehensive energy retrofits for buildings statewide. The project, which ended in 2017, provided energy audits and access to low-interest loan financing to encourage energy efficient retrofitting. “It went both really well and really poorly depending on how you look at it,” says Vanessa Stevens, a researcher with the Cold Climate Housing Research Center. The project was unable to establish the self-sustaining element of the pilot program (which would have come from interest on loans), mostly due to financial restrictions faced by the participating nonprofits. “Funding situations [for nonprofits] tend to be more tenuous than a business. Nonprofits have a lot of additional hurdles to taking out a loan—a lot of their boards turn over every three to five years. So, [often] the current board didn’t want Alaska Business

to take on a ten year loan and saddle future boards to pay for that loan,” Stevens says. “It was really a successful project [in other ways]. All the nonprofits either had imminent plans to act on their retrofit or they acted on the retrofit—and that is fairly unheard of Alaska.” One of the reasons for the high success rate of nonprofits acting on their energy audit—which is fairly technical and thirty to fifty pages long—was that the program provided technical assistance in understanding the audit and guidance on how to proceed once it was finished. “One huge hurdle that everyone in Alaska is trying to deal with—residential, commercial, and nonprofit buildings— is when you do the energy audit… but then the energy audit sits on the shelf,” Stevens says. “There’s a big hurdle there because you have to find the money to do the retrofit, whether it’s a loan or self-funding. Then you actually have to get the contractors to do the work, schedule them, and get the work done.” Stevens says that most auditors find time to work with business owners who want to understand the audit, as they don’t want the audit to sit on a shelf. “They’ll sit down with them and walk them through it, but you kind of need to ask,” Stevens says, recommending an in-person meeting or a post-audit walkthrough, if possible. The output of an energy audit will provide the building owner with actionable recommendations, as well as estimated costs and the payback period based on estimated savings. “Some can be paid back in less than one year, especially if you’re on really old lighting technology on your building,” Stevens says. “Typically, a really good payback is under five years; five to fifteen years it’s usually worth doing. Past fifteen years, you’re kind of looking at, do you want to do it? Does it have any additional advantages, such as prolonging the life of the building?”

Prioritizing Improvements In general, most businesses looking to cut costs and increase energy efficiency focus on lighting and ventilation. “There are major savings from these areas in electrical loads and possibly demand cost savings. Adding control systems— occupancy, daylight, scheduling—to these systems is also another area of major savings,” Wiltse says. “Lighting and July 2019 | 85

control systems are the two easiest for a business to do, even if they are a tenant in a leased space. Sometimes they can also do ventilation.” For businesses in standalone buildings, heating is often a large energy load. “Determining the best mix of shell improvements—[such as] insulation and air tightening—and heating system upgrades [like] scheduling, outdoor offset, higher efficiency, [and] fuel switching can depend on many factors including the location of the business, cost of materials, and access to maintenance personnel,” Wiltse says. “If I owned the space, then I would probably look at lighting, ventilation, and controls, and then look at my heating and envelope options after. I might add air sealing from the envelope improvements options at the time of ventilation changes.” Wiltse notes that businesses wanting to engage in energy efficiencies need to have a certain amount of disposable

Municipality of Anchorage,” Wiltse says. “Juneau’s Economic Development Corporation has a small business loan for up to $300,000, which I believe is not restricted from being used on energy efficiency.”

Utilizing Utilities Alaska utility companies have also taken it upon themselves in some cases to help businesses cut their energy consumption and costs. “Chugach is pleased to have an online tool to help both residential and commercial members find ways to reduce their electrical consumption and electric bills,” says Julie Hasquet, senior manager of corporate communications at Chugach Electric Association. Hasquet explains that a key component to reducing consumption and cost for large commercial businesses is to understand electrical demand, which is the rate at which electricity is used at any

“The My Account portal allows [our] members to identify when their demand peaks occur, which assists with scheduling and potentially lowering their total bill,” Hasquet says. In Kodiak, electric costs are lower than most of the state. And while heating costs are higher than along the Railbelt, they are lower than in more remote Alaska communities, explains KEA President and CEO Darron Scott. “The main way that we have worked to reduce their costs is to reduce ours. We are a not for profit cooperative, so our costs are theirs,” Scott says. “We have been very successful in this as we have not had a rate increase since the ‘90s.” KEA’s primary focus has been to move to a fully renewable electric system. “This has allowed us to not have to pass on the cost of diesel to our consumers, so it keeps their costs down,” Scott says. “One other area that we have worked on with the borough and the school

“In some regions of the state, the easiest way to bring costs down is to focus on increasing efficiency. Elsewhere, using renewable energy systems or improving the local power system may make more sense.” —Jon Bittner Executive Director, Alaska SBDC

income or access to loans at low enough rates that they pencil out based on anticipated savings. “You also need to be able to either close your business while work is going on or have sufficient space to section off the areas receiving work,” Wiltse says. “This also assumes they own the space and are not leasing. If they are leasing, they have no say in this and often the owner is passing the costs for energy straight on to the lessor, so the owners have no incentive to improve their building until they can no longer find someone willing to be a tenant.” For building owners who do want to make energy efficiency improvements, the USDA offers grant and loan options for areas outside the Municipality of Anchorage. “For example, AEA has a USDA-funded Commercial Building Energy Audit program for commercially owned buildings located in rural Alaska—outside of the 86 | July 2019

one given time, as opposed to energy, which reflects the amount of electricity that is consumed over time. “The purpose of the demand charge is to recover the cost of having the facilities available to provide the maximum amount of electricity customers may require. It is both the rate and the quantity at which members consume electrical energy that affects how much it costs the utility to produce and deliver power,” Hasquet says. “Given this, it is clear that there is more to managing electricity than just using less of it. While most conservation programs will reduce your energy costs and may affect demand, a deliberate effort to control demand can have a significant impact on reducing bills. These efforts that focus on lowering demand is known as load management.” Businesses can manage demand costs by running machinery that requires more power during times of the day when their electric usage is lowest.

district—and we are in talks with others— is to utilize our excess renewable energy. They can use that power at a lower cost for heating than their oil costs for heating. It provides a win-win for our community.” Though businesses throughout the state face the highest energy costs in the nation—creating a barrier that can put a drag on local economies—they are also the benefactors of a wave of research and development in the energy efficiency, renewable energy, and microgrid industries. “Alaska isn’t the only place that has these kind of issues: large geographic area, underdeveloped energy infrastructure, high costs, and small populations,” Bittner says. “If we can solve our own energy problems, I believe that we will be creating marketable products and services that we can export outside of the state to our overall economic benefit.”

Alaska Business www.akbizmag.com

EAT

SHOP

PLAY

STAY

City Sights W

Flat Top Scenic Overlook, which provides stunning views of the city of Anchorage and Chugach Mountains. knightlytours.com

hile Alaska’s far-flung, hard-to-reach places are well worth the effort and the time to visit, the state’s population hubs also house unique experiences that often complement travel plans on a boat, in a plane, or by rail. Many of the state’s cities provide day tours with information on their history, food, and culture. Following (from north to south) are a few urban tours offered around the Last Frontier. Northern Alaska Tour Company provides guided tours of Utqiaġvik, the northernmost city in the United States. While in Utqiaġvik, guests visit the residential and commercial areas of the community as well as the Arctic Ocean coast, including enjoying a cultural program by local volunteers that may feature ceremonial song and dance, traditional games, or a demonstration of local native crafts. northernalaska.com

agriculture industry. alaskafarmtours.com

The Alaska Railroad offers the Historic Fairbanks City Tour, which gives guests the opportunity to learn more about the Golden Heart City from the comfort of an air conditioned motorcoach. Running from May through September, the tour includes stops at TAPS, Pioneer Park, the Morris Thompson Cultural and Visitor Center, and the University of Alaska Museum of the North. alaskarailroad.com

Alaska Photo Treks exposes guests to Anchorage’s history and unique landmarks while advancing their photography skills. The Anchorage PhotoWalk covers a two-mile loop beginning and ending in Anchorage’s historic city center at the log cabin Visitor Information Center at 4th Avenue and F Street and is guided by a local, professional photographer. alaskaphototreks.com

Alaska Farm Tours tells the story of what Alaskans grow and how they eat, exposing guests to the unique food and farm culture in Alaska. Tour options include Talkeetna Farm & Food, Palmer Farm & Brew, and Palmer Farm & Food. A portion of all ticket sales are provided to the farms visited and local agricultural organizations to support the

In its Scenic City Tour of Anchorage, Knightly Tours starts at the Ship Creek area where Anchorage was born and teaches tour-goers about the city’s pioneer history; from there the tour moves to Bootleggers Cove, Earthquake Park, and Lake Hood (the busiest seaplane base in the world) before wrapping up at the Chugach Mountains at the

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URBAN TOURS

The Anchorage Trolley offers a narrated Scenic City Tour. The one hour, fifteen mile tour features a lively, informative Alaskan guide sharing the history of Alaska’s largest city from within a heated trolley. Highlights include Earthquake Park, Westchester Lagoon, Anchorage’s historic neighborhoods, and Lake Hood. anchoragetrolley.com

Starting at 3:15 p.m. daily from June 1 through midSeptember, rangers from the National Park Service provide free Public Lands Walking Tours from the Alaska Public Lands Information Center in Anchorage. The tours are approximately fortyfive minutes and include information about Alaska culture, animals, and the history of public lands. alaskacenters.gov From mid-May through early September, Ghost Tours of Anchorage walks guests through downtown Anchorage and educates them on many of the city’s infamously haunted properties, including the 4th Avenue Theater, the Historic Anchorage Hotel, and the alley in which the first Anchorage chief of police was murdered. ghosttoursofanchorage.com The National Park Service provides free, ranger-led walking tours through Skagway’s Historic District. There are three tour options: Gold Rush 101 looks at several buildings downtown and ends at Moore Homestead Museum, a restored frontier family home; Untold Stories looks at specific topics like women’s history, Alaska Native people, or immigration; and the Buffalo Soldiers of Skagway tour is about the men of the 24th Infantry, an all African American Unit, that maintained law and order in frontier Skagway. nps.gov/klgo/planyourvisit/ walking-tours.htm

Alaska Business

The Skagway Street Car Tour has been operating since 1923; Martin Itjen gave Alaska’s first motorized sightseeing tour to Warren G. Harding in 1923 in a painted coal truck he called his “street car.” The tour lives on today with behind-the-scenes tales and stories about smalltown Alaska from a costumed conductor on a yellow, 1927 sightseeing bus. skagwaystreetcar.com During a leisurely walk, guests on one of Juneau Food Tours’ excursions gain insight into the history of Alaska’s capital city and enjoy delicious treats that feature locally sourced ingredients and talent. The tours range from just over an hour to six hours and include a Tour with Taste, Juneau Bites & Booze, Taste of Nature, and Juneau Afternoon Delights. juneaufoodtours.com Juneau Guided Tours provides participants with three walking tour options within the city: Ghosts & Gold, Capital City Sights, or a private walking tour tailored to a group’s preferences. The tours range from two to three hours and generally are conducted in groups of fewer than ten. The tours operate rain or shine and usually span three to four miles with occasional breaks. juneauguidedtours.com Kawanti Adventures offers a naturalist-guided walk within the Alaska Rainforest Sanctuary, a 40-acre private preserve of temperate rainforest that borders the Tongass National Forest at Ketchikan. Stops on the tour include a historic sawmill, totem park, and the Alaska Raptor Center Ketchikan exhibit. kawanti.com July 2019 | 87

EAT

SHOP

PLAY

STAY

Taste of Cordova Salmon Cook-off, all at Mt. Eyak Ski Hill. salmonjam.org

WRANGELL

JUL Bearfest 24-28 This festival celebrating the bears of Alaska takes place at the James and Elsie Nolan Center and includes street games, a Salmon Bake, jam sessions, bear symposium, bear country workshops, live music, a photo contest, wildlife photography workshops, a golf tournament, a marathon, and community market. wrangell.com

ANCHORAGE

JUL Beer & 27 Bacon Festival The Beer & Bacon Festival, held at the Lakefront Anchorage, features a bacon eating contest, bacon creations from twenty local chefs, and libations from fifteen Alaska breweries. The beer and bacon booths are open from 1 p.m. to 6 p.m. the-lakefront-anchorage. ticketleap.com

JUL Alaska 28 Aviation Festival Celebrate Alaska’s rich aviation history

EVENTS CALENDAR

at the Alaska Aviation Museum with live music, a food vendor carnival, adult refreshments, child and family activities, information booths, book author signings, and low-level aircraft fly-bys from 10 a.m. to 4 p.m. alaskaairmuseum.org

CORDOVA

JUL Copper River 12-13 Salmon Jam Celebrate salmon and promote the health and sustainability of local salmon runs through art, music, road races, educational activities, and the

EAGLE RIVER

JUL Bear Paw Festival 10-14 Events at this annual festival include the Slippery Salmon Olympics, the Running of the Bears, human foosball, Teddy Bear Picnic, classic car show, parade, carnival rides, and the I-Did-A-Duck race at various locations around Eagle River. bearpawfestival.org

FAIRBANKS

JUL Golden Days 13-21 Celebrate Fairbanks’ gold rush history with a parade, historic reenactments, rubber ducky race, and more. Golden Days also includes a parade, street fair, comedy night, barbeque championships, and a river regatta which is not a river race, but a flotilla where winners are judged on creativity and integration of the Golden Day’s theme “Picks, Pokes, and Golden Folks.” fairbankschamber.org/golden-days JUL Fairbanks Summer 14-28 Arts Festival Sing, play, dance, paint, cook, learn, listen, relax, write, stretch, and watch at this multi-discipline study performance festival at the University of Alaska Fairbanks. The event includes workshops, master classes, and performances. fsaf.org

JUL World Eskimo17-20 Indian Olympics Athletes compete in traditional games and celebrate through pageants, dances, and Native arts and crafts at the Carlson Center. weio.org

GIRDWOOD

JUL Girdwood 5-7 Forest Fair

The fair features hand-crafted items, exotic foods, and entertainers from all over Alaska, along with the annual Forest Fair Parade at 10 a.m. on Saturday. Limited parking is available at the Alyeska Resort Daylodge with shuttle service provided to the Girdwood Fairgrounds located 88 | July 2019

at Mile 2.2 Alyeska Highway. girdwoodforestfair.com

HAINES

JUL Southeast Alaska 25-28 State Fair The fair includes a parade, exhibits, a logging show, live music, horseshoe tournament, fun-run, kids’ stage, amusement rides, vendors, food, entertainment, live animals, and puppet shows. Some of this year’s headliners at the Southeast Alaska Fairgrounds include Sitka Cirque, Ozomatli, Arietta Ward & the Voices of Greatness, Rastasaurus, Smoke N Bones, and The Sweet Lillies. seakfair.org

PALMER

JUL Palmer 13 Garden & Art

Midsummer Faire Rain or shine, the Palmer Midsummer Garden and Art Faire is a celebration of local art, gardening, food, and music in Downtown Palmer. This annual event showcases the best of what the Mat-Su has to offer, including a Topihairy Challenge, a no-holds-barred styling competition among local stylists for the best garden art themed hairstyle. palmergardenandart.org

SEWARD

JUL Mount Marathon 4 From its start as a bet between two locals in 1915, the Mount Marathon race has become iconic. Competitors race from downtown to the top of Mount Marathon and back in both open and junior divisions. This year the Junior Race is at 9 a.m., the Women’s Race begins at 11 a.m., and the Men’s Race begins at 2 p.m. mmr.seward.com

SOLDOTNA

JUL Soldotna 26-28 Progress Days Soldotna Progress Days is a community event that includes a parade, family activities, Dutch oven competition, the Sawfest Chainsaw Carving Competition, food and craft vendors, live music, and a free community picnic at Soldotna Creek Park. visitsoldotna.com

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BUSINESS EVENTS JULY JULY 11

Best of Alaska Business 49th State Brewing Co., Anchorage: Alaska Business honors more than sixty companies selected by our readers as leaders in their field, ranging from breweries and sushi restaurants to web designers and swag providers. The event is awesome—and space is limited. akbizmag.com/boab JULY 8-12 & 22-26

Alaska Business Week Alaska Business Week is a oneweek summer program teaching the basic principles of private sector business to Alaskan high school students. The Anchorage program runs July 8-12 at Romig Middle School and the Mat-Su program runs July 22-26 at Colony High School in Palmer. alaskabusinessweek.com

discussions, pop-ups, and poster presentations about climatic controls on continental erosion and sediment transport. blogs.egu.eu/divisions/gm/

Anchorage: The Uniform Law Commission provides states with non-partisan, well-conceived, and well-drafted legislation that brings clarity and stability to critical areas of state statutory law. uniformlaws.org AUGUST AUGUST 4-8

KDD 2019 Dena’ina and Egan Centers, Anchorage: The annual KDD conference is the premier interdisciplinary conference bringing together researchers and practitioners from data science, data mining, knowledge discovery, large-scale data analytics, and big data. kdd.org/kdd2019/

AML Summer Legislative Meeting Soldotna: 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 AUGUST 18-20

NHA Alaska Regional Meeting

Museums Alaska Annual Conference

OCTOBER 17-19

Kodiak: This year’s conference theme is “Critical Conversations: Diversity, Equity, Accessibility, and Inclusion,” as “the museum field is currently engaging in critical conversations regarding how our institutions can evolve to become more equitable, inclusive, diverse, and accessible.” museumsalaska.org/Conference

Fairbanks: The Alaska Federation of Natives (AFN) Convention is the largest representative annual gathering in the United States of any Native peoples. Delegates are elected on a population formula of one representative per twentyfive Native residents in the area, and delegate participation rates at the annual convention typically exceed 95 percent. nativefederation.org

SEPTEMBER 26-28

Baranof Downtown, Juneau: The National Hydropower Association (NHA) is a nonprofit association dedicated exclusively to promoting the growth of clean, renewable hydropower and marine energy. hydro.org/event/20357-2/ AUGUST 21-23

APA Annual Meeting Centennial Hall, Juneau: The Alaska Power Association’s 68th Annual Meeting and ARECA Insurance Exchange Annual Meeting, hosted by Alaska Electric Light & Power and Inside Passage Electric Cooperative, brings together APA’s statewide membership for three days of association business, general sessions, speakers, and networking. alaskapower.org SEPTEMBER SEPTEMBER 23-27

Alaska Fire Conference Ketchikan: The conference includes training, workshops, lectures, and a firefighter competition. alaskafireconference.com

ASA Fall Conference Fairbanks: The Alaska Council of School Administrators’ unifying purpose is to support educational leaders through professional forums, provide a voice that champions possibilities for all students, and purposeful advocacy for public education. alaskaacsa.org

AFN

OCTOBER 25-27

Alaska Cross Content Conference Anchorage: T he mission of the Alaska State Literacy Association is to empower educators, inspire students, and encourage leaders with the resources they need to make literacy accessible for all. akliteracy.org

SEPTEMBER 27

Alaska Business Top 49ers Luncheon Anchorage Marriott Downtown: Come honor the top forty-nine Alaska companies ranked by revenue at our annual luncheon. 907-276-4373 | akbizmag.com SEPTEMBER 30 – OCTOBER 4

AAHPA Annual Conference Juneau: This is the annual conference of the Alaska Association of Harbormasters & Port Administrators. alaskaharbors.org OCTOBER OCTOBER 7-10

GSA Penrose Conference

SEPTEMBER 23-27

IAWP 2019 Conference

ATIA Annual Convention & Trade Show

Juneau: This year’s meeting includes talks, roundtable

Dena’ina Center, Anchorage: The theme for the 2019 conference of

Centennial Hall, Juneau: The Alaska Travel Industry Association

AUGUST 4-10

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is the leading nonprofit trade organization for the state’s tourism industry. The theme for this year’s conference is “Legend of Alaska.” alaskatia.org

SEPTEMBER 25-28 AUGUST 13-15

JULY 12-18

Uniform Law Commission Annual Meeting

the International Association of Women Police is “Mentoring the Next Generation.” iawp2019.womenpoliceofalaska.org

Alaska Business

OCTOBER 26-28

Alaska Principals’ Conference Sheraton Anchorage: Keynote presenters at this year’s conference are Tom Murray and Lissa Pijanowski. alaskaprincipal.org/2019-alaskaprincipals-conference OCTOBER 28-30

Alaska Chamber Fall Forum Hotel Alyeska, Girdwood: Open to the public, the Alaska Chamber’s Annual Conference is the state’s premier business conference. The conference draws 200 to 225 attendees and features keynote speakers, panel discussions, and breakout sessions on issues of statewide concern to Alaska business. alaskachamber.com July 2019 | 89

INSIDE ALASKA BUSINESS Pick.Click.Give. After several years of steady but flat giving through Alaska’s premiere charitable giving campaign, Pick. Click.Give. is experiencing an increase in overall pledged totals as well as the amount pledged per donor. By the end of March, the total amount pledged by Alaskans was $2.9 million, the average pledge per donor is $113.88, and the average pledge per gift (each gift represents the amount a donor gifts per nonprofit organization) is approximately $62.53. The current average pledge per donor increased nearly $9 over last year and is a record for the program. pickclickgive.org

Travel Juneau Travel Juneau released its 2018-2019 Convention Survey and 2018 Visitor Survey, both conducted by McDowell Group. Economic impacts of Juneau conventions and meetings revealed total direct spending for meetings at $2.7 million and a total of $3.6 million in indirect and induced economic impacts. Meetings held from 20172018 generated approximately $113,000 in sales tax to the City and Borough of Juneau. The survey also highlighted satisfaction for Juneau’s friendliness as a community and Travel Juneau’s services to planners. Both survey reports can be found on the Travel Juneau website: traveljuneau.com/about-travel-juneau.

Northrim Bank Northrim Bank opened its newest branch, the Soldotna Financial Center, located at 44384 Sterling Highway, Suite 101 in the Peninsula Center Mall. The new location is the newest iteration of Northrim’s “branch of the future” blueprint used in the design of its Lake Otis Community Branch, opened in 2015, and its Eastside Community Branch, opened late last year. The focus of the new branches is on customer interaction in a more efficient footprint. The Soldotna Financial Center brings 90 | July 2019

Northrim Bank to sixteen branches throughout Alaska and expands its reach onto the Kenai Peninsula, a new market area for the bank. northrim.com

MTA MTA Fiber Holdings, a subsidiary of MTA, is building Alaska’s “first and only” all-terrestrial fiber network connecting Alaska to the Lower 48. Construction on AlCan ONE (Alaska Canada Overland Network) has commenced in North Pole with a projected completion date of mid2020. The network will run along the Alcan to the Canadian border where it will interconnect with fiber optic infrastructure being built by Canadian carriers. AlCan ONE will allow for more geographic diversity, increased bandwidth, and protect against underwater incidents that could disrupt submarine cables. mtasolutions.com

EDA The US Department of Commerce’s Economic Development Administration (EDA) is investing to help the Native Village of Napaimute acquire vital equipment needed to spur economic growth in the wood products sector. The $589,000 EDA grant will help Napaimute acquire a waterborne landing craft that will aid the transport of harvested wood products. The addition of the waterborne landing craft will help increase economic transactions and foster conditions that will be conducive to the creation of business and employment opportunities. eda.gov

Sitka Food Business Innovation Contest This year’s winners of the second annual Sitka Food Business Innovation Contest are Brittany Dumag and her food cart, Castaway, in the start-up business category (younger than two years); Tamara Kyle of Sitka Sauers in the established business division; and Abigail Ward, age twelve, who won a special youth business award. The

Sitka Food Business Innovation Contest awarded a $1,500 prize each to Dumag and Kyle, while Ward won $250. The contest is sponsored by the Sitka Local Foods Network as a way to encourage Sitka entrepreneurs to start businesses using food from Sitka or Alaska. It also is meant to promote better food security with more locally made food products. sitkalocalfoodsnetwork.org

UIC Ukpeaġvik Iñupiat Corporation (UIC) intends to enter into a new relationship to operate the local grocery store in Utqiaġvik. Following a Request for Proposal process, UIC is now in negotiations with Begich Capital Partners and their partnership with JB Gottstein team as the new store tenant and operator. The team has strong Alaska roots, a commitment to the local community, and a vision to efficiently and effectively deliver fresher and more affordable groceries to the community. Current negotiations have Begich Capital Partners and JB Gottstein taking over the grocery store in November. uicalaska.com

DNR The Division of Oil and Gas will offer Special Alaska Lease Sale Area (SALSA) blocks in conjunction with the Fall 2019 oil and gas lease sale. The Harrison Bay, Storms, and Gwydyr Bay lease sale blocks will be offered again in 2019 with the same or similar terms and conditions as were offered in the Fall 2018 sale. Each lease sale block has 3D seismic data acquired through the State of Alaska Tax Credit Program, which are available through the Department of Natural Resources. The bid opening for the Fall 2019 lease sale is tentatively set for 9 a.m. on Wednesday, December 11, 2019, in Anchorage. An updated version of the SALSA data guide is posted on the DNR website to prepare potential bidders for the Fall 2019 lease sale. dnr.alaska.gov

Alaska Business www.akbizmag.com

RIGHT MOVES Key Bank  Scott Rowley has joined KeyBank as Vice President and Senior Payments Advisor with the Enterprise Commercial Payments Rowley Group at KeyBank. In this role, Rowley works with a collaborative team of product managers, analysts, and implementation specialists to ensure his clients have access to KeyBank’s extensive resources. He holds an MBA in international business from Regis University in Denver.

ML&P  Anna Henderson has been appointed to the position of General Manager for Municipal Light & Power (ML&P). Henderson has Henderson experience managing gas supply operations, leading negotiations in purchase and sales agreements, and leading the development and approval of utility rates for ML&P. Henderson holds a bachelor’s degree in business administration from the University of Alaska Anchorage.

Alaska Chamber  The Alaska Chamber hired Kati Capozzi as President and CEO. In her new role, Capozzi will develop and implement Capozzi plans to accomplish the priorities of the Chamber. She will

also lead advocacy efforts to ensure that priorities of Alaska’s businesses are known and properly considered in creation of policy and regulations and act as the organization’s primary spokesperson.

McCool Carlson Green  Cara Rude has been promoted to Principal at McCool Carlson Green. She is the first female principal shareholder in the company’s forty-plus years. Rude Rude was educated at The Art Institute of Portland where she earned a bachelor of science in interior design.

BSNC  Bering Straits Native Corporation (BSNC) promoted Karla Grumman to Chief Human Resources Officer/Associate Vice President. Grumman joined Grumman BSNC in 2017 after serving in senior HR roles at other Alaska Native corporations and commercial companies. Grumman has twenty-seven years of experience successfully aligning HR with business strategy and goals. She leads the overall strategy and administration of HR services.

APCM  Alaska Permanent Capital Management (APCM) hired Meghan Carson as Associate Financial Advisor.

Carson interned at APCM in 2016 while attending UAA, where she graduated with a bachelor’s degree in economics and a bachelor Carson of business administration in accounting. In her new role as associate financial advisor, Carson will use her accounting skills to provide support for financial planning and investment management.

Alaska Communications  Alaska Communications promoted William H. Bishop to Senior Vice President and COO. Bishop will assume responsibility for business Bishop operations including revenue across all market segments, customer service, network, and IT. Bishop joined Alaska Communications in 2004 and has served in several leadership roles in consumer and business sales and operations. He brings more than twenty-five years of telecom and business leadership experience to this role.

Northrim Northrim Bank promoted a number of employees throughout the bank.  Mark Edwards, promoted to EVP-Chief Credit Officer and Bank Economist, has been with Northrim Bank since 2007. A lifelong Edwards Alaskan, Edwards has an

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MBA from Alaska Pacific University and a master’s degree from Thunderbird Graduate School of International Management.  Kari Skinner, promoted to SVP-Marketing & Communications Director, joined Northrim in 2017 with more than fifteen years Skinner of sales and marketing experience. She holds an MBA from the University of Utah.  Marc Guevarra, promoted to VPCommercial Loan Officer, has worked in banking since 2001. He has been Guevarra with Northrim since 2014. He holds a BBA in accounting from the University of Alaska Anchorage.  Tammy Kosa, promoted to VP-Regional Market Manager, has been with Northrim for fifteen years. She is a graduate Kosa of the University of Alaska Fairbanks and has been awarded the Northrim Way Award, Customer First Service Award, and President’s Award.  Gerlie Monta-Guevarra, promoted to VP-Branch Manager, started her career in banking in 2000 and has been with Monta-Guevarra Northrim since 2014. Monta-Guevarra was born and raised in the Philippines and migrated to the United States in 1996.  Aili Peyton-Jalbert, promoted to VPCommercial Cash Management Officer, Peyton-Jalbert joined Northrim Bank in 2018 with eight years of banking experience. She holds a master’s

degree in communications from the University of Hawaii.  Josie Thayer, promoted to VP-Commercial Cash Management Officer, has been with Northrim for more than thirteen years Thayer and has twenty years of cash management experience. She holds a bachelor’s in international business from the University of Alaska.  Bill Simpson, promoted to VP-Collections Supervisor, joined Northrim in 2007 as part of the bank’s acquisition of Alaska Simpson First Bank & Trust. He has more than thirty years of experience in banking. Simpson holds a BBA with an emphasis in finance from Boise State University.  Katie Bender, promoted to AVP-Community & Public Relations Manager, has been with Northrim since 2013 and has more Bender than fifteen years of experience in communications and public relations. She holds a masters of public administration from the University of Alaska Anchorage.

Alaska USA Federal Credit Union Alaska USA Federal Credit Union selected three individuals to fill executive level positions.  Elizabeth Rense Pavlas has been promoted to Executive Director, Retail Financial Services. Pavlas brings a wealth of experience to the position, earning positions of increased responsibility throughout her ten-year career with the credit union. She has a bachelor of

business management and a master of business administration from the University of Alaska Anchorage and is in her final year of Western CUNA Management School.  Robert McNaughton has been selected for the position of Executive Director, Business and Commercial Services. McNaughton has worked at Alaska USA for fifteen years, most recently as vice president, business and commercial lending. He has more than thirty years of commercial lending experience, including portfolio management, credit underwriting, and small business banking.  Jeff Gregg has been selected for the position of Vice President, Business and Commercial Lending. Gregg has worked for Alaska USA for the last three years, most recently as regional vice president, commercial lending, Pacific Northwest. He has more than twenty-eight years of commercial lending experience and has a bachelor of business administration from Central Washington University.

Tlingit & Haida  Central Council of the Tlingit & Haida Indian Tribes of Alaska promoted Melissa Jensen to Manager of the Tribe’s Sacred Jensen Grounds Café. Jensen joined the Sacred Grounds team in 2018. In her new position, Jensen will work toward establishing a drive-thru location, developing an inventory management system, expanding food service and menu options, and providing training and employment opportunities.

Gillnets. Crab pots. Catch of the Day. Whatever you need, we deliver. Connect with us / 800.727.2141 / www.nac.aero /

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Alaska Business

July 2019 | 93

AT A GLANCE What book is on your nightstand? Rise and Grind: Outperform, Outwork, and Outhustle Your Way to a More Successful and Rewarding Life by Daymond John; it goes over his philosophy, what he does day-to-day, how he started and developed his daily routine… It makes me feel really lazy [he laughs]. What movie do you recommend to everyone? To everyone? The Goonies. One of my favorite movies, which is more specific in taste, is Annihilation. What’s the first thing you do after work? I work out. If you couldn’t live in Alaska, where would you live? I’ve always been drawn to Central Europe, around Scandinavia or Poland. I love the amount of history there. If you could domesticate a wild animal, what animal would it be? I have to go with the lion… just having a huge, cuddly friend—it would be perfect.

Photographer credit here

94 | July 2019

Alaska Business www.akbizmag.com

OFF THE CUFF

Jontue Hollingsworth J

I came back it was really humbling to be in the airport and all of my possessions were right by my side. I didn’t have a house or a car—my key chain was actually empty, I just had the key ring [he laughs].

ontue Hollingsworth is the founder and top executive (and only employee) of

Hollingsworth Design Co., which specializes in brand development and design. He is the exceptional local artist who designed our cover this month. In our annual search to find an artist for our July issue, we were drawn to the humor and high energy of Hollingsworth’s modern, graphic, yet grounded work. Hollingsworth has a passion for exercising his creativity, whether that’s developing a traditional media campaign or branching out into sculpture, sewing, or woodworking. Alaska Business: What do you do in your free time? Jontue Hollingsworth: I’m always trying to learn or build something; playing video games is probably the only mindless sort of thing I do, just for pure enjoyment. [Recently he’s been playing Red Dead Redemption.] AB: Is there a skill you’re currently developing or have always wanted to learn? Hollingsworth: I’d like to someday learn to speak another language. I had a go at learning Spanish and Polish, and I can pick out a few words in conversation, but it would be amazing if I could speak fluently.

AB: Dead or alive, who would you like to most see perform live in concert? Hollingsworth: The Wu-Tang Clan, right around the release of their first album, Enter the Wu-Tang (36 Chambers). AB: What’s your greatest extravagance? Hollingsworth: That’s pretty tough—I’m kind of a cheap guy. Well, not cheap, I like to say thrifty… but I recently did my taxes, and I found out that I spent a lot more than I thought on coffee. AB: What is your best attribute and your worst attribute? Hollingsworth: I like learning things, and I always keep an open mind: that’s my best. My worst is probably time management. I’m always working, which works out for my clients, but for the other people in my life, not so much.

AB: What is your go-to comfort food? Hollingsworth: Baked macaroni from the Bahamas—like my mom makes—with a side of ribs. AB: Other than your current career, if you were a child today, what would your dream job be? Hollingsworth: Definitely an astronaut. AB: What’s your favorite way to exercise? Hollingsworth: P90X is always a staple for me, and I like lifting weights, but I also love to get outside for a run or walk on the [Tony Knowles] Coastal Trail. AB: What’s the most daring thing that you’ve ever done? Hollingsworth: When I sold everything and moved to Alaska; I didn’t have a job, I was just moving up here hoping to get a job. And I was here for not even a year and I did the same thing and moved to Australia for about a year. When www.akbizmag.com

Alaska Business

July 2019 | 95

ALASKA TRENDS

Alaska SBDC Reports on State's Small Business in Alaska Small $228,929,000 Businesses In 2016, Alaska small businesses received 7,594 loans totalling

to help build their businesses and boost the economy.**

n 2018, the Alaska Small Business Development Center (SBDC) conducted the second annual Alaska Small Business Survey. According to Alaska SBDC Executive Director Jon Bittner, “As an organization with over thirty-five years of experience working with and for Alaska’s small business sector, the Alaska SBDC is in a unique position to see, first-hand, the profound impacts our clients have on Alaska and our economy. This survey was created as a way to help quantify and share some of those insights, and to uncover important trends driving Alaska’s economic engine in the future.” We have included just some of the information the comprehensive survey provides. The full report can be found at aksbdc.org. SOURCE: 2018 Alaska Small Business Survey by Alaska SBDC

+99.1% of all Alaska businesses fall under the SBA definition of “small business”.*

+71,841

small businesses in Alaska, from Ketchikan to Utquiagvik.*

+142,448

Alaskans are employeed by a small business.* * Source: U.S. Small Business Administration, Office of Advocacy, 2018 Small Business Profile **Source: ffiec.gov (most recent available)

Alaska Jobs

2019 Plans for Hiring The majority of small businesses surveyed indicated they were planning to maintain (56%) or increase (41%) their workforce in 2018. Only 3% planned on reducing staff in the coming year.

41%

56%

Maintaining Hiring Reducing

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Capital Infusion Amount of capital small business reported receiving in the past twelve months:

ANS Crude Oil Production

10%

$0 - $9,999

6/02/2019

20%

$10K - $24,999

05/01/2011

$25K - $49,999

09/01/2008

22%

$50K - $99,999

14%

$100K - $499,999

16%

$500K - $1M 0

01/01/2014

10 12

01/01/2006

ANS Production barrel per day 503,936 Jun. 2, 2019

05/01/2003 09/01/2000

400,000

800,000

1,200,000

SOURCE: Alaska Department of Revenue Tax Division

ANS West Coast Crude Oil Prices 5/30/2019

TOP FIVE

Economic Health

56%

09/01/2008

of survey respondents reported their 2018 revenues were about the same or higher compared to 2017.

Greatest Challenges Facing Small Business:

09/01/2012

ANS West Coast $ per barrel $66.39 May 30, 2019

09/01/2004

09/01/2000 $0

$20

$40

$60

$80 $100 $120 $140 $160

SOURCE: Alaska Department of Revenue Tax Division

Statewide Employment Figures 01/1976—04/2019 Seasonally Adjusted

1. Operating costs 2. Finding funding 3. Shipping costs 4. Finding qualified employees 5. Economy

65% of small businesses surveyed reported it was either very difficult or somewhat difficult to hire new employees for their business. This represents a 7% increase over 2017 survey data.

Labor Force 353,953 Apr. 2019 Employment 331,059 Apr. 2019 Unemployment 6.5% Apr. 2019

01/01/2010 05/01/2004

100 Number of respondents

Hiring is a Tough Part of the Job

4/01/2019

09/01/1998

38%

80 60

Very Difficult

27%

23%

40 20 0

12%

Somewhat difficult

01/01/1993 05/01/1987 09/01/1981

Not Difficult

01/01/1976 0

Unsure

100,000

200,000

300,000

400,000

SOURCE: Alaska Department of Labor and Workforce Development, Research & Analysis Section

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ADVERTISERS INDEX Alaska Communications............... 3 acsalaska.com Alaska Executive Search (AES)...51 akexec.com Alaska Native Tribal Health Consortium.................................100 anthc.org Alaska Regional Hospital........... 49 alaskaregional.com Alaska USA Federal Credit Union....................56 alaskausa.org ALSCO.............................................. 11 alsco.com American Heart Association..... 48 heart.org/en/affiliates/alaska/anchorage Arctic Information Technology... 7 arcticit.com Arctic Office Products.................45 arcticoffice.com AT&T..................................................25 att.com Bailey's Furniture.......................... 44 baileysfurniture.com BP......................................................67 bp.com BSI Commercial Real Estate..... 42 bsialaska.com Business Insurance Associates Inc.....................................................19 businessinsuranceassociates.com Central Environmental Inc. (CEI)..........................................81 cei-alaska.com Conrad-Houston Insurance Agency.........................19 chialaska.com

Construction Machinery Industrial (CMI)................................ 2 cmiak.com

NRC Alaska.....................................83 nrcc.com

Cornerstone Advisors..................39 buildbeyond.com

Oxford Assaying & Refining Inc.....................................73 oxfordmetals.com

Cruz Companies...........................76 cruzconstruct.com

Parker Smith & Feek.....................47 psfinc.com

Denali - a division of Nuvision Credit Union...................................57 denalifcu.org

PDC Inc. Engineers......................37 pdceng.com

Environmental Management Inc...........................79 emi-alaska.com Explore Fairbanks..........................36 explorefairbanks.com First National Bank Alaska............ 5 fnbalaska.com Foss Maritime.................................23 foss.com Fountainhead Hotels...................73 fdialaska.com Judy Patrick Photography......... 50 judypatrickphotography.com

Peppercini's Deli & Catering......35 alaskadeli.com Photo Emporium...........................17 photoemporiumak.com PIP Marketing Signs Print............31 pip.com Span Alaska Transportation LLC.......................30 spanalaska.com Stellar Designs Inc....................... 88 stellar-designs.com T. Rowe Price................................ 99 uacollegesavings.com

Landye Bennett Blumstein LLP... 23 lbblawyers.com

The Megan Room Conference & Events Center.............................53 themeganroom.com

Leonardo DRS................................75 LeonardoDRS.com

The Nature Conservancy...........27 nature.org/en-us/

Lynden Inc......................................77 lynden.com

Tutka LLC.........................................79 tutkallc.com

Matson Inc......................................33 matson.com

Westmark Hotels.......................... 40 westmarkhotels.com

Microcom........................................15 microcom.tv

Wostmann Associates Inc..........15 wostmann.com

New Horizons Telecom Inc.......14 nhtiusa.com

Yuit Communications..................41 yuitcomms.com

North Star Behavioral Health.....43 northstarbehavioral.com

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Alaska Business July 2019

Articles inside

Those Who Can Do Teach

Pros and Con

Risky Business

The Internet of Things

'Huslin' My Hoodies'