Alaska Business March 2018 by Alaska Business

BUILDING ALASKA | MINING | HEALTHCARE | PROFESSIONAL SERVICES March 2018 Digital Edition

50 YEARS OF QUALITY: RAIN PROOF ROOFING CELEBRATES MANY PARTNERSHIPS

April & Patrick Reilly of Rain Proof Roofing Â© Judy Patrick Photography

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“Our businesses are successful when our community is successful. Let’s work together with United Way to make sure every Anchorage family is financially healthy.

Joe Everhart

Creating a stable financial path forward. 7

EVP, Business Banking Manager for Alaska, Oregon, Washington Wells Fargo

Every business relies upon the financial vitality of customers, suppliers, contractors and employees. Building that foundation for your business and for our community’s economic well-being starts with ensuring that every Anchorage family is financially stable and has the opportunity to thrive.

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March 2018 Digital Edition TA BLE OF CONTENTS

DEPARTMENTS

FROM THE EDITOR EAT, SHOP, PLAY, STAY EVENTS CALENDAR RIGHT MOVES BUSINESS EVENTS INSIDE ALASKA BUSINESS ALASKA TRENDS AD INDEX

ABOUT THE COVER: Every March Alaska Business features a Building Alaska special section, honoring, celebrating, and exploring Alaska’s third largest industry: construction. This year we’re pleased to feature on our cover Patrick and April Reilly, who own and have operated Rain Proof Roofing for years. Rain Proof Roofing was founded by April’s father, Jack Markley, in 1962, and the Reillys took the reins as owners and operators in 1983. The two are now looking at taking a step back and handing over management to a new team comprised of Brion Hines, who will be the company’s president; Misty Stoddard; Chris Reilly; and Jason Dial, all of whom are current shareholders. The transition officially takes place April 1 as Rain Proof Roofing looks forward to another fifty years of safety, quality, and service.

7 112 113 114 116 117 120 122

Cover photo: © Judy Patrick Photography

Image courtesy of Diversified Construction

ARTICLES

18 Lounge completed by general contractor Diversified Construction for the University of Alaska Anchorage.

8 | Social Media Branding Tactics

Think you’re in control of your brand? Think again. By Tracy Barbour

FINANCE

12 | Financing Big-Ticket Construction Equipment Funding options help businesses own rather than rent By Tracy Barbour

INSURANCE

18 | Surety Bonds ‘Invaluable’ Active broker-surety relationship facilitates bonding and business growth By Tracy Barbour

PROFESSIONAL SERVICES 24 | Workspaces Morph from ‘Me’ to ‘We’

Retooling the office to increase efficiency, employee collaboration, and cost-efficiency By Judy Mottl

ENVIRONMENTAL

30 | Sustainable Design

TRANSPORTATION

84 | Keeping Alaska Fueled Up Fuel delivery via truck, ship, and even a rolling drum By Vanessa Orr

Thoughtful planning benefits owners and community By Tasha Anderson

OIL & GAS

78 | Unconventional but Not Impossible

Technological advances increase access to oil By O’Hara Shipe Crowley Fuels has been servicing Alaskans statewide since 1953.

Alaska Business | March 2018 www.akbizmag.com

Image courtesy of Crowley Maritime Corporation

TELECOM & TECH

ONE BANK SHARED MY VISION

One bank believed in me. When Dr. Christopher Gay wanted to start his own practice, he looked for a local expert who would go the extra mile to learn about his business and understand his dreams. He found Melissa Reiser, a First National community banker who took time to understand his business and help him succeed. We believe banking is more than a series of transactions. From business startups and home loans to lines-of-credit and online banking, talk to a First National community banker and discover how you can get the most out of life in the Last Frontier. For us, banking has always been about people and helping Alaskans succeed. For the rest of Dr. Gayâ&#x20AC;&#x2122;s story, visit FNBAlaska.com

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Dr. Christopher Gay, owner Alaska Center for Pain Relief

www.akbizmag.com

We Believe in Alaska March 2018 | Alaska Business

March 2018 Digital Edition TAB LE OF CONTENTS

Building Alaska Special Section A section of the New Seward Highway between Dowling Road and Dimond Boulevard during the summer 2017 construction season. During 2018, crews plan to complete most of this section of highway. A final wave of Seward Highway widening (from Dimond south to O’Malley Road) is expected to commence in 2021.

Image courtesy of David Song, Assistant Project Engineer, Alaska DOT&PF

48 | Alaska Builds Second Six-Lane Highway

The leadership team of Rain Proof Roofing in front a truck painted the company’s signature orange.

Anchorage mega-project in second of three stages By Sam Friedman

54 | Serving Anchorage’s

Inner Child

Construction on Alaska’s only Dave & Buster’s nearly complete; hiring underway By Vanessa Orr

60 | Alaska Business 2018

42 34 | 2018 Alaska

Construction Spending Forecast

ARTICLES ENERGY

90 | Hydro, Solar, and Acquisitions Energy utilities seek to expand renewables and reduce costs By Tasha Anderson

HEALTHCARE

108 | Alaska Ill Prepared for

Growing Elderly Population State faces shortage of senior services programs, funding, healthcare workers By Judy Mottl

Spring Construction Round-Up New, ongoing, and planned projects statewide By Kathryn Mackenzie

42 | Rain Proof Roofing An Alaskan Success Story By Tasha Anderson

66 | The Alaska Business

2018 Construction Directory

Mining Special Section 94 | Mining Remains

Workers at Pebble from several summers ago.

a Cornerstone of Alaska’s Economy

Entire nation benefits from responsible resource development By Marleanna Hall

98 | Ongoing Activity at Arctic and Bornite Trilogy Metals advances its major Alaska deposits By Tasha Anderson

104

Image courtesy of Pebble Limited Partnership

104 | Pebble Project Moves Forward

How far forward debatable By Tom Anderson

Alaska Business | March 2018 www.akbizmag.com

FROM THE EDITOR VOLUME 34, NUMBER 3 Published by Alaska Business Publishing Co. Anchorage, Alaska EDITORIAL STAFF Managing Editor Kathryn Mackenzie 257-2907 editor@akbizmag.com

Associate Editor Tasha Anderson 257-2902 tanderson@akbizmag.com Digital and Social Media Strategist Arie Henry 257-2906 ahenry@akbizmag.com Art Director David Geiger 257-2916 design@akbizmag.com Art Production Linda Shogren 257-2912 production@akbizmag.com Photo Contributor Judy Patrick BUSINESS STAFF President Billie Martin VP & General Manager Jason Martin 257-2905 jason@akbizmag.com VP Sales & Marketing Charles Bell 257-2909 cbell@akbizmag.com Advertising Account Manager Janis J. Plume 257-2917 janis@akbizmag.com Advertising Account Manager Holly Parsons 257-2910 hparsons@akbizmag.com Advertising Account Manager Christine Merki 257-2911 cmerki@akbizmag.com Accounting Manager Ana Lavagnino 257-2901 accounts@akbizmag.com Customer Service Representative Emily Olsen 257-2914 emily@akbizmag.com 501 W. Northern Lights Boulevard, Suite 100 Anchorage, Alaska 99503-2577 (907) 276-4373 | Toll Free: 1-800-770-4373 Fax: (907) 279-2900 www.akbizmag.com Editorial email: editor@akbizmag.com ALASKA BUSINESS PUBLISHING CO., INC. Alaska Business (ISSN 8756-4092) is published monthly by Alaska Business Publishing Co., Inc., 501 W. Northern Lights Boulevard, Suite 100, Anchorage, Alaska 99503-2577; Telephone: (907) 276-4373; © 2018 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 $3.95 each; $4.95 for the October issue. Send subscription orders and address changes to circulation@akbizmag.com. To order back issues ($8.95 each including postage) visit www.akbizmag.com/store.

A “

laska has a long mining history and can attribute much of its infrastructure to early explorers and miners… Alaska contains strategic minerals important to national security and the economy. The continued development and production of these resources by the mining industry is vitally important.” This sentiment from Resource Development Council for Alaska Executive Director Marleanna Hall is echoed by members of the mining industry throughout the state. This month in the Alaska Business Mining Special Section, we are fortunate to feature Hall’s outlook on the mining industry for the coming year. There are currently six major operating mines in Alaska primarily producing silver, zinc, gold, lead, and coal; materials that, as Hall points out, are used to make the products we use every day. From technology to housing, mining is inextricably linked to our daily needs. Which makes it none too surprising that the industry is responsible for more than 4,350 direct jobs in Alaska; $675 million in total direct and indirect payroll; $111 million in payments to Alaska Native corporations; and $81 million in state government-related revenues through rents, royalties, fees, and taxes, according to the Alaska Miners Association. Along with looking forward at the potential for mining in Alaska, in this issue we explore updates to the Pebble Project and an take a look at the work Trilogy Metals is conducting in the Ambler Mining District. We also present a very special edition of Building Alaska in which the Construction Industry Progress Fund and the Associated General Contractors of Alaska offer the Alaska Construction Spending Forecast as a guideline to construction activity and its effect on the 49th State in the year ahead. Spoiler alert: the industry will see some increases. And what is the commencement of spring without the Alaska Business Spring Construction Round-Up? Contractors, engineers, architects, and builders from around the state have provided us with their latest and greatest projects to keep you up to date on all the construction happenings in Alaska. Thank you to everyone who contributed their time and effort to this exciting issue packed full of all that is Alaska Business.

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—Kathryn Mackenzie Managing Editor, Alaska Business March 2018 | Alaska Business

TELECOM & TECH

Social Media Branding Tactics

Think you’re in control of your brand? Think again.

Although most businesses have SEO Revolves around Google a website, a surprising number of SEO, which is designed to improve them don’t have a mobile-responthe way content is ranked in unsive site, according to Jennifer paid search results, has evolved Christensen, co-founder of Beaover the years. But it’s as vital tocon Media + Marketing. Responday as it was when the dominant sive sites are designed to properly search engines encompassed more By Tracy Barbour display content on a variety of than Google and Bing. “When you think about SEO, it’s about a oday, most companies know it’s im- devices and screen sizes, which customer finding you,” says Kathy portant to have some sort of online is important since smartphones, and social media presence to remain tablets, and other mobile devices Jennifer Christensen Norford, Spawn’s Denver-based media director. “With social, it’s competitive. But implementing an effec- generate most online traffic. “As a Co-founder Beacon Media + you finding your customer.” tive strategy in these areas can be challeng- business owner, I have a lot of emMarketing Essentially, SEO uses various ing and sometimes downright intimidating pathy for business owners because for businesses. The landscape is constantly sometimes you get so busy and Image courtesy of Beacon techniques to enhance the online Media + Marketing visibility of online content. This changing in the digital world, making it dif- you don’t notice until the phone can include everything from straficult for even the most technology-oriented stops ringing,” Christensen says. companies to keep up with the latest online “And then you tend to call for help. You need tegically embedding keywords within a web platforms. But businesses can use simple tac- someone you can trust to make sure your on- page, online press release, or blog article to tagging photos, using Meta tags, and mobile tics plus enlist the help of industry experts to line presence and social media are updated.” A company’s online presence is constantly optimization. “With SEO, it’s the things you enhance their web, search engine optimization (SEO), and social media strategies. Ei- changing and should be checked on at least can do on the back end of your website to ther way, they should take a holistic approach weekly, Christensen says. This can easily be align with how Google will help people find to their social media strategies to ensure they done by setting up a Google Alert to see if you,” Hirt says. Hirt emphasizes that keywords are gerare targeting the right audience in the right anyone has mentioned the business in a review, blog post, or news article. When cre- mane to social media and search engine marlocation and with the right message. ating an online presence, it’s better to start keting (SEM). For example, with SEM—which slowly and build momentum than to try to primarily equates to Google AdWords—it’s Web Design Strategies do everything at once. “If you important to employ the most appropriate A website is still the most imporstart an online presence and stop keywords. “If you know what words are most tant digital property a business it, people may think your compa- important to your business, you will want to can have, says Julie Hirt, director ny went out of business,” she says. use them throughout your website and social of account management at Spawn Christensen says a website is a media properties,” she says. Ideas, an Anchorage-based adverfoundational part of any online With SEO, the key is to keep it simple and tising agency. “A website is the hub and social media presence. Con- cover the basics, Hirt says. Sometimes SEO can of the digital ecosystem,” she says. sequently, the first step she takes be as simplistic as making a personnel invest“Anything else you do on the web when assisting clients is to review ment. “Many website platforms that you can use drives [people] to the website.” the content on their site to see if it to build a simple site come with SEO and steps A company’s online and social “rings true” with the audience they for you to follow,” she says. “You can start small media strategy can be as simple are trying to attract. She considers and simple and go from there. You don’t have to as having a one-page website and Julie Hirt one social media platform. The Director of Account a host of questions: Is the design at- be everywhere, but you have to be concise [and Management tractive? Does the site load quick- have focused and targeted messaging].” simpler the strategy, the better Spawn Ideas ly? Can people find what they’re For Christensen, SEO entails the technibecause it will take less time and looking for? Does it have the right cal side and content. The technical aspect inmoney to maintain it. Image courtesy of Spawn Ideas keywords? volves ensuring a website has all the elements When it comes to the design of a “Then we do ongoing con- required by Google’s ever-changing algocorporate website, user experience is a major consideration, Hirt says. The design tent development and SEO to drive traffic rithm or formula for ranking web content. Content is critical because it’s one of the should ensure that the content is organized through Google,” she says. “Lastly we drive so people can find what they need, how they most of the leads through Facebook and key components Google analyzes when evalneed it, and when they need it. “It’s also about Google AdWords. We’re driving the traffic uating websites. Therefore, a company’s conyour brand, which is not just a logo or tagline,” with an advertisement to the website, and tent needs to accurately reflect what people she says. “It’s the experience. For example, if I then we use a call-to-action to get people to are actually searching for online. “You need to have very detailed explanations of what come to your site and it doesn’t work well, it’s respond.” hard to find information, and it loads slowly, I Christensen adds: “Sixty-seven percent of services you provide and how you can help will have a bad feeling about your company.” the time people are making decisions about people,” Christensen says. “The more deIn addition to having a user-friendly de- doing business with you based on your on- tailed and precise, the better chance you have sign, it’s important for a website to be trans- line presence. It’s not just about cold calling of having your site pull up in Google.” Companies also need to constantly add conactional in nature. It should enable people anymore.” to do something like register for an event, In terms of the cost of web design, compa- tent to their website. Blogging is a great way to request information, or place an order. It’s nies can create a rudimentary web presence accomplish this because it allows content to be also imperative to keep in mind who will be by investing just a few dollars and hours of kept alive and relevant. Christensen also recreading the web content. “If your audience is their time. They can buy a 99 cent domain ommends using strategic link building tactics. younger, make sure your messaging reflects from Go Daddy and set up a template-based “You want to make sure your site shows up on that,” Hirt says. “If they are older, be cog- WordPress site with hosting for $9 a month. the internet in as many places as possible that nizant of how they are trying to access that However, they can expect to pay considerably [are] relevant to you, such as in directories like Google Places,” she says. “Google does look at information.” more for professional website development.

Alaska Business | March 2018 www.akbizmag.com

“Sixty-seven percent of the time people are making decisions about doing business with you based on your online presence. It’s not just about cold calling anymore.”

—Jennifer Christensen Co-founder, Beacon Media + Marketing

how many other web pages are linking to you. The more you can have people link to your site, all that will help your SEO.” An effective SEO strategy requires a combination of integrated tactics; the cost for implementing SEO varies from agency to agency.

Simple Social Media People have a growing interest in social media, with a strong penchant for Facebook, Twitter, and Instagram. Every day there’s a new social media outlet or platform being introduced to an audience of hundreds of millions of people. It can be overwhelming, but companies shouldn’t get distracted by it. Hirt says, “While you need to be aware of the platforms, you have to be aware of where your audience plays.” Companies should choose a platform they feel would be used by most of their existing or potential customers. Nine times out of ten that would be Facebook, Hirt says. It’s important to create clear and concise talking points, along with imagery and videos. It’s also good to post items frequently on Facebook. “Post something short and simple at least once a day,” Hirt says. “Also, take a look at paying to boost your posts on Facebook [to reach a broader audience].” Today, organic reach through tactics such as SEO and social media is not sufficient for an effective web presence, Norford says. Companies need to add paid advertising to the mix. Although Facebook is a massive channel, it has aged significantly. “What we do for clients is we’re looking at each platform and seeing how far that organic reach is getting you and whether it can be augmented with a paid schedule [advertising]. The changes to Facebook’s newsfeed algorithm announced in mid-January putting the focus on friends and family interactions over those of brands increases the need to complement organic reach with paid placement.” Social media solutions can be very simple and cost-effective for companies to implement, Hirt says. This is particularly true if they limit themselves to a single platform like Facebook. As an advertising channel, Facebook is currently underpriced, Christensen says. And this makes it a good investment for companies that want to enhance their social media strategy. “It’s still very undervalued,” she says. “Most of the Fortune 500 companies are using Facebook. That makes sense because anybody who wants to have a profitable business and wants to have the best return on investment would consider Facebook advertising.” Christensen also feels that almost all companies need a social presence—but not on www.akbizmag.com

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March 2018 | Alaska Business

every platform. “It’s no longer an option for most companies to not “The changes to Facebook’s newsfeed algorithm have that social media presence,” announced in mid-January putting the focus on friends she says. “That’s where people are spending their time, so you need and family interactions over those of brands increases to meet them where they are. One the need to complement organic reach with paid out of every four people in the world is on Facebook.” placement.” Also, Facebook offers big data —Kathy Norford, Media Director, Spawn Ideas on all the people that companies want to reach. “You can target Kathy Norford, exactly who you want to reach Media Director, Spawn Ideas engage with your fans, you can equipped to assist clients with a wide array with your message,” Christensen have a big impact with consumers of needs. “We certainly offer a lot of servicsays. “For example, if I want to Image courtesy being loyal to your brand. Now es, but we always couch it in a larger brand reach chief financial officers at of Spawn Ideas customer service on your social and content strategy,” Hirt says. “We want insurance companies, I can tarto understand what problem you are trying get those exact people… Another piece of the accounts becomes part of your sales cycle.” to solve… and then craft what your brand big data they have is that Facebook is not just stands for in regard to that problem.” pulling data from Facebook, but from everyGetting Professional Help Spawn helps clients take a holistic apwhere. It’s unbelievable.” Developing an integrated web, SEO, and We are living in a very unique time, Chris- social media strategy can be a complex un- proach to digital media by balancing clienttensen says. Thirty years ago, advertisers and dertaking. A lot of it appears simple in that it owned and paid assets. The client’s own asbusinesses were in charge of their own brand can be a self-service platform, but the answer sets could include their website and social and messaging. “Now it’s more of the con- can be complex because companies need to media platforms, while paid assets could be sumers being in control, and they are actu- consider all of their own communication and Google AdWords and Bing advertising. Beacon Media + Marketing has an entire ally telling the brand who they are,” she says. the other communication out there, Norford Traditional advertising is becoming less says. Therefore, she recommends businesses web and SEO department in house, which is influential, as consumers focus less on radio get professional help. “When you ultimately somewhat unusual since many agencies are and television. Eighty-seven percent of con- want to get that communication solution, it’s outsourcing some of these pieces. However, Beacon and its twelve-member team don’t try sumers don’t believe ads anymore, and 92 important to use experts,” she says. percent hate ads, Christensen says. “You have That’s where agencies such as Spawn Ideas to be everything to everyone. “We focus on a whole generation coming up who are doing come in. Spawn—named the Small Agency five verticals: health and wellness, nonprofit, ad blocking,” she says. “What’s replaced that of the Year Northwest by Advertising Age— Native, service, and tourism,” says Chrisis your online connections and reviews. But is a fully-integrated advertising agency. The tensen, who was named Alaska Marketer of if you’re willing to be courageous and really company’s team of forty employee-owners is the Year by the American Marketing Asso-

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Alaska Business | March 2018 www.akbizmag.com

ciation of Alaska. “This allows us to keep our training time down to ten hours a week.” Everything is changing every three to six months, whether it’s Facebook or Instagram or Google AdWords. Because of those constant changes, Christensen created Beacon Marketing Academy to help companies stay ahead of the curve. “Our first mission is to educate and provide good resources for our clients,” she says. “I think that, specifically in Alaska, the more educated businesses can be on the subject, the more we can sell [goods and services] out of state.”

General Advice about the Wide World of Social Media As a word of general advice, Christensen says companies may need to consider employing multiple providers to meet their web, SEO, and social media needs. “Digital agencies tend to focus on Facebook so you may need another company for SEO and Google AdWords,” she says. Companies, particularly those in the start-up position, need to educate themselves about creating an online presence and adding a social media strategy to their marketing plans. Then they can decide if they are capable of meeting their needs internally. “If it’s not something you enjoy doing or feel confident about, you should consider outsourcing,” Christensen says. Businesses are focusing more on using analytics and data to enhance their messages and better reach consumers. This involves

personalizing messages according to people’s preferences. For example, millennials generally prefer to communicate through a device and they don’t like to wait. “We are going to have to be mindful, as we sell products, about how we should interact with people,” Hirt says. As the web, SEO, and social media continue to shift, Norford advocates being authentic, engaging—and keeping it simple. “Don’t try to dazzle the user,” she says. “You want to focus on giving the answer that the user is seeking.” Hirt also recommends maintaining a simple approach. She says: “You can’t be everywhere for everyone. Really focus on what’s the most important thing to do, and do it well. Maybe it’s a one-page website and one social media platform.” However, Hirt emphasizes that the trend is not for companies to choose web design over SEO or social media but to combine all three to ensure they’re in the places people can find them. “There’s a lot you can do for little money on all three fronts,” she says. Every day there’s something new, and there’s a new way to reach people. “It’s an exciting frontier,” Hirt says, “and it’s going to continue to evolve.” R

Fishing Fishing for for just just the the right right candidate? candidate?

Tracy Barbour has been an Alaska Business contributor since 1999. As a former Alaskan, she is uniquely positioned to offer in-depth insight and enjoys writing about a variety of topics.

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FINANCE

Financing Big-Ticket Construction Equipment Funding options help businesses own rather than rent

By Tracy Barbour

onstruction is a capital-intensive industry that requires business owners to invest in expensive equipment, machinery, and other assets. Thankfully, there are a number of construction equipment financing options available to make it easier for owners to buy or lease the items they need. Traditional financial institutions can be a viable funding source for owners who can’t afford to purchase outright needed construction equipment. For instance, First National Bank Alaska offers a variety of term financing for equipment purchases. Generally, the bank likes to keep its equipment financing term from one to ten years, according to Zac Hays, vice president of the corporate lending division at First National. Most of its equipment loans are shorter in length, but a tenyear term could be provided for something such as a commercial fishing vessel or other equipment with a very long, useable life. Typically, the life of the equipment is factored into the loan term. “Often it’s wise to tie the term of the loan to the length of time you can depreciate that equipment,” Hays says. “Obviously you want something where the loan balance is in tune with the value of the equipment.” Construction equipment is somewhat of a specialized type of asset. So the financing for such an item will have different considerations than standard commercial funding. When underwriting, the bank considers the purpose of the loan and how it can impact the business. “Generally speaking, companies buy equipment because it will help them perform a task, and that task produces cash flow,” Hays says. However, First National looks at every deal on a case-by-case basis, Hays says. Loans are generally collateralized by the equipment— assuming it’s something the bank wants and there is enough equity to meet the loan-tovalue requirements. For example, First National may not be interested in collateralizing a loan with a very specialized piece of equipment or equipment that would be located somewhere in a very remote area. In that case, there are other options. “We can always use something in addition to or instead of the equipment, such as real estate, cash, and equipment other than the equipment being financed,” he says. Often the business owner is the borrower 12

so the bank considers factors on nance a higher loan-to-value,” says a “global basis” for underwriting Floyd, who is based in Anchorage. purposes. “We look at the income Wells Fargo offers fixed-rate of the business or borrower on a and variable-rate loan options stand-alone basis to make sure with monthly payments. It also the business/borrower can afford can provide financing to accomthe payment. We also look at the modate seasonal or annual paynet worth and the credit history ments, which can be helpful for of the borrower,” says Hays. many of Alaska’s resource-based The owner would be a guarbusinesses. “If we can, we will antor on the loan so personal structure the loan to match their Zac Hays income, personal net worth, and cash flow,” Floyd says. Vice President credit history would also be evalAs with any other commerCorporate Lending uated as part of the lending procial financing product, obtainFirst National Bank cess. Of course, if the business is ing a construction equipment Alaska owned by shareholders, then only loan comes down to several key Image courtesy of First its corporate information would elements: having an established National Bank Alaska be assessed. business, debt coverage, and cash From a typical interest-rate flow. Like most financial institustandpoint, First National employs risk- tions, Wells Fargo also factors in personal asbased pricing for its construction equipment sets and creditworthiness if the borrower is loans, Hays says. It looks at loan-to-value, an individual or small business. down payment, years in business, and credit, Clients are securing loans to purchase a vaamong other factors, to determine the inter- riety of equipment, including loaders, dump est rate. trucks, excavators, and side dumps. However, First National does not do any type of in- some businesses have short-term needs, spehouse lease financing for construction equip- cific tax-related strategies, and other considment. But it does provide short-term working erations that are better addressed through capital that business owners can use to lease leasing. Floyd explains: “It depends on if they equipment. This type of financing is generally ultimately want to own the asset. They may secured by something other than the equip- want to return it to the equipment finance ment being leased. “Sometimes it makes company. A lot of the time, the lease is tied to more sense for a business to rent equipment a specific contract where they can get reimthan buy it,” Hays says. “It’s cheaper to pay bursed for those lease payments.” a higher monthly fee for two months, when Conventional loans represent the majorthe equipment is generating revenue for your ity of Wells Fargo’s construction equipment company, than to have it sit there unused for financing. But Clyde Markey, Seattle-based the rest of the year.” territory manager at Wells Fargo Equipment Finance, has conducted a significant number Loans and Leasing of track leases on title equipWells Fargo offers a diversity of ment. He’s also done some fairloans and leases to help Alaska market-value leases that are business owners fund the acquiuniquely designed to meet the sition of construction equipment. short-term needs of businesses. The bank’s typical construction “Customers get a lower payment equipment loan entails a three- to and can turn that asset in when five-year term that matches the they’re done with it,” he says. life of the equipment, says Wells The process for getting construcFargo Equipment Finance Alaska Darin Floyd tion equipment financing varTerritory Manager Darin Floyd. Equipment Finance ies from customer to customer. Even though equipment financAlaska Territory Some customers prefer to secure ing typically involves a shorter Manager Wells Fargo financing before they go shopping term, sometimes exceptions can for equipment, while others will be made. “There are times where, Image courtesy make financing arrangements if the equipment is new, we can fiof Wells Fargo

Alaska Business | March 2018 www.akbizmag.com

What’s Your Business HealthIQ?

hile all businesses share some characteristics, the unique nature of each organization is what matters, including a company’s goals, culture, challenges, and even risks. Joshua Weinstein, President of RISQ Consulting Employee Benefits & Employer Services, says one common thread among businesses is that they tend to spend money unnecessarily. RISQ Consulting strives to prevent this by providing risk management, customized insurance programs, and comprehensive employer services. “We help organizations find the areas where they’re spending money that they don’t need. Typically, we even discover areas of risk or exposure that the business was not aware of before,” Weinstein says. Weinstein goes on to explain a proprietary process used to identify risks within a business: “We’ve created a process called the Business HealthIQ™, or BHIQ, which allows us to methodically and systematically understand a business’ needs and risks. At the end of the day, the more we know about an organization’s people, mission, and values, the better we can align all our resources and products to best work for our clients.”

RISQ Consulting is a new organization, officially operating under the RISQ Consulting name as of January 1, 2018. However, the company’s two main components have a long history in the Last Frontier: Insurance Brokers of Alaska has been operating here since 1986, and Northrim Benefits Group has Alaskan roots going back to the 1970s before partnering with Northrim Bank in 2005. Acrisure, a Michigan-based company, purchased the commercial and employee benefits business of Insurance Brokers of Alaska in December 2016. Northrim Benefits Group was acquired in August 2017. Tim Maudsley, President of Commercial Lines for RISQ Consulting says, “Yes, this is a new name, but that doesn’t mean it’s a new team. Our clients will still work with the same dedicated professionals in both departments (employee benefits, property and casualty) as they always have. Our expertise is intact.” In addition to their significant experience in Alaska, the RISQ Consulting team offers access to Acrisure’s nationally-recognized resources and capabilities. Weinstein says, “We now can provide our clients with a local presence in addition to a national backdrop of resources. Acrisure has back-office – PA I D A D V E R T I S E M E N T –

efficiencies that allow our staff to fully focus on being with our clients and helping them solve their organizational challenges in order to achieve success.” Weinstein explains that Acrisure is a relatively new company—founded in 2004—but in those fourteen years has grown to be the tenth largest brokerage firm in the United States. Acrisure’s exceptional growth is primarily attributed to the acquisition of specialized insurance agencies nationwide. Maudsley says, “The success of Acrisure’s model is that each agency really understands their community, local markets, and regional economy.” He continues, “We are bringing national-level resources to our clients in Alaska. Our devoted staff now has the ability to deliver a national scope of services to our clients.” RISQ Consulting operates out of three offices, two in Anchorage and one in Fairbanks, with more than sixty employees to meet the needs of any Alaska business: large or small, new or well-established.

RISQConsulting.com I 888-910-6667

©Judy Patrick Photography

“I see more companies putting off their purchasing decision. I think it’s because the cost of rental has gone down so much. Plus, people are worried about what the economy will do next year.” afterward. Markey says that most of the time, customers will call and advise him of what they are looking to do several months in advance. Some customers request loans because they need to order new equipment, while others want to purchase an item they are already renting. Wells Fargo also works with a number of dealer networks to assist their customers. In this case, the bank serves as a “captive” finance company, offering special lending programs for different manufacturers. “Wells Fargo has close to twenty plans [financing options],” Markey says. “We’re very committed to the construction industry. I believe we’re one of the highest financers of equipment next to some of the larger captives like John Deere or Caterpillar.” However, Markey says, sometimes a captive finance company’s cost of funds can be higher, which can make it more advantageous for borrowers to work directly with Wells Fargo. Regardless of the type of financing customers use, the loan processing time will vary. It could take a few hours or a few

days, depending on the customer’s relationship with the bank, financial information required, and other factors. For instance, Jeff Hamilton, president of Hamilton Construction, has been a Wells Fargo customer since 1992. The Skagwaybased business, with projects that include bridges, remote rock quarries, and armored breakwaters, recently used the bank’s financing to purchase some large Hitachi excavators and a larger concrete portable batch plant. Over the years, Hamilton has relied on the bank to finance different equipment with five year notes that range from $1 million to $5 million. “I appreciate how quickly they respond,” Hamilton says. “I can literally have a request and loan documents in three or four days. And it’s closed within a week.”

Dealer Financing Options Dealer financing is another viable source of funding for business owners needing construction equipment. Yukon Equipment— one of the oldest heavy equipment dealers in Alaska—is a prime example. A subsidiary of

Image courtesy of Yukon Equipment

—Charlie Klever, President, Yukon Equipment

Charlie Klever, President, Yukon Equipment

Calista Corporation, Yukon carries dozens of brands, including a complete line of Case construction equipment. The company sells crawler tractors, front-end loaders, and excavators as well as asphalt distributors, chip spreaders, and other construction equipment. It also carries other kinds of heavy equipment, ranging from street sweepers and industrial vacuum trucks to equipment trailers and airport and road snow blowers. Yukon offers various equipment financing alternatives, including captive financing,

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partnering funding sources, direct thirdparty lending, credit-challenged funding sources, and in-house financing. The most frequently-used option is captive financing, which offers different programs to incentivize and facilitate the sale of a manufacturer’s product line, according to Charlie Klever, president of Yukon Equipment. The captive finance company—which is typically owned by the manufacturer—knows the value of the equipment and is predisposed to help dealers sell their products. “Since they built it, they know what it is worth and are much more apt to finance it for collateral than a funding source that doesn’t understand the equipment as well,” Klever says. “They have a greater incentive because it’s not just the interest rate they are making, and their manufacturer is making money on the sale of the collateral.” With Yukon’s partnering funding sources, smaller manufacturers join forces with an established funding source, such as a bank like Wells Fargo, to provide financing alternatives for the dealer’s customers. “These funding source programs are product-specific, and the manufacturer may subsidize interest rates to meet the demands of the marketplace,” Klever says. Direct third-party lending allows banks, leasing companies, and other funding sources to provide the dealership with alternatives for customer financing needs. This normally happens when the equipment falls out of the criteria of the captive funding requirements. The equipment could be another brand, too old, or something other than what the customer would like to buy through captive financing programs. “Most third-party lenders will approve financing with the application only to a certain dollar amount,” Klever says. Credit-challenged funding sources are available to provide financing and leasing alternatives when a customer is unable to qualify for a major lending source. With these lenders, additional credit information and strengtheners to the transaction are usually necessary to obtain equipment financing. More collateral and higher interest rates also may be required with these funding sources. In some cases, in-house financing may be available through the dealership. This alternative is usually short-term in nature. And it could be constructed as an extension to a rental period or other arrangement until a piece of equipment is purchased or refinanced elsewhere. Klever explains: “If you have someone who has rented a piece of equipment and wants to buy it and you cannot arrange financing, the customer continues to rent the machine until you can find financing. So it becomes a long-term rental period.” With Yukon’s financing options, the equipment being purchased is always taken for collateral. In 100 percent of the cases, a purchase-money security interest—which allows the dealer to repossess and sell the equipment if the borrower defaults—is used to collateralize the loan. An evaluation of the customer’s credit is a key factor for loan approval. “If you have a good credit score, a

good down payment, and standard collateral, the deal will get approved with just your application,” Klever says. So how long does it take for customers to secure financing at Yukon? Financing approval is relatively quick for someone who completes a one page application, can make at least a 10 percent down payment, and has an acceptable credit score. “Somebody can literally walk in here and walk out an hour later with a signed loan and piece of equipment,” Klever says.

Construction Equipment Financing Trends In terms of trends, Klever has noticed more people choosing to start out renting equipment. They will often rent the equipment for a job, wait until they get more work, and turn the rental into a purchase. “I see more companies putting off their purchasing decision,” he says. “I think it’s because the cost of rental has gone down so much. Plus, people are worried about what the economy will do next year.” Additionally, there’s a strong availability of equipment in Alaska, so it’s fairly easy for companies to find equipment to buy later, should a company decide to rent for a longer period of time. At Wells Fargo, Floyd has also noticed a level of restraint when acquiring construction equipment. “Most people are being very cautious and thoughtful about their purchases,” he says. “Some folks are putting off expenditures until they are a little more sure of what they are going to have in the future.” Even as Alaska’s economy continues to struggle its way back, Hays of First National is still seeing heavy equipment being purchased for road construction and oil field development. He’s also detecting diversification with the bank’s equipment financing clients. “Tourism is doing well,” he says. “We have had a few clients expand, whether it’s buying a larger boat or retrofitting boats. Some companies are doing a brewery.” Hays points out that while overall construction equipment volume has declined somewhat, he thinks businesses and banks in Alaska are “cautiously optimistic.” “We are absolutely lending money, but we do loans that make sense both for the borrower and the bank.” The bank’s chief goal, Hays says, is to do what is right for the business. This involves asking a lot of questions, listening to clients, and helping them make an educated decision. “We don’t want to lend money to someone if we know it will put them in a bad spot down the road. Your success is our success. If you succeed, then we’ve done our job well.” R

Tracy Barbour has been an Alaska Business contributor since 1999. As a former Alaskan, she is uniquely positioned to offer in-depth insight and enjoys writing about a variety of topics.

Alaska Business | March 2018 www.akbizmag.com

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Images courtesy of Diversified Construction

INSURANCE

Pharmacy classroom completed by Diversified Construction for the University of Alaska Anchorage.

Surety Bonds ‘Invaluable’ Active broker-surety relationship facilitates bonding and business growth

By Tracy Barbour

hen Pete and Rachel Ridge started Diversified Construction in 2010, they owned a truck, a tool box, and just a few other assets. The couple, who previously worked for Watterson Construction, slowly built their assets and surety bonding capabilities. Now the commercial general contracting business has completed jobs all around Alaska, including a pharmacy classroom for University Alaska Anchorage, two fire stations in Willow, and a string of tenantimprovement projects. Recently, Diversified Construction landed its largest job ever—a $1.6 million project with the Matanuska-Susitna Borough. This spring, the company will begin making improvements to the ice-skating rinks at the Willow

and Talkeetna elementary schools. To win the contract, Diversified Construction had to submit several surety bonds. Having ongoing access to surety bonds has been vital to the success of the business, Rachel says. “As we’ve grown, our bonding capacity has grown,” she says. “And it’s solely because we’ve stayed in contact with our surety company and broker.”

Essential for Business Surety bonds are an indispensable part of doing business for many companies offering services in the public and private sectors. Primarily used in the public arena—and increasingly for private-sector projects— they’re designed to ensure that projects are fulfilled according to the terms of a contract. More specifically, a surety bond is a threeparty agreement in which a surety or bonding company promises to pay an obligee if a principal does not satisfy their obligation. The state of Alaska requires surety bonds on all contracts that are sizeable in cost or long in duration, according to Scott Jordan, director of the Alaska Department of Administration’s Division of Risk Management. He considers surety bonds to be an invalu-

able protective instrument. “Surety bonds guarantee a project will be completed or compensated for if the contractor in unable or unwilling to complete the project,” he says. Although surety bonds are often considered to be a type of insurance, they are distinctly different. Unlike insurance—which compensates the insured against unexpected adverse events—a bond is designed help the obligee or project owner manage risk by preventing loss. “If a project initially fails to be completed and the obligee submits a claim against the bond, the bonding company will work with the contractor to try and complete the project without paying out the bond,” Jordan says. “If all efforts fail, the bonding agency will pay out the bond to the obligee; however, they have indemnification agreements with the principal regarding recovery from their assets.” Bonding serves an important function in contracting, especially with public projects, according to Christopher Pobieglo, CIC, CRIS, president of Business Insurance Associates. “The ultimate goal of all of this is to protect tax-payer dollars,” says Anchorage-based Pobieglo. “When the government funds a road in your neighborhood, they are requiring bonds

Alaska Business | March 2018 www.akbizmag.com

Image courtesy of Diversified Construction

to make sure they get their value and they don’t have contractors walking out on work.” Surety bonds fall into two basic categories: contract and commercial. Contract bonds— which represent the majority of the bonds being used in Alaska—are often referred to as construction bonds. They include bid, performance, and payment bonds, which are aptly named for their function. A bid bond assures that the bid is submitted in good faith and that the contractor will enter into the agreement at the price specified. A performance bond promises the owner that the contractor is capable and qualified to perform the contract. And a payment bond guarantees the contractor will pay specified subcontractors, laborers, and suppliers associated with the project. Commercial bonds fall into a variety of categories: license and permit, fidelity, fiduciary, public official, and court bonds. These surety bonds are normally secured by companies and working professionals who require bonding for reasons unrelated to legal issues, construction projects, or other contracted work. Commercial bonds are typically used to support laws such as license and permit regulations. Commercial bonds fall into a variety of classifications: workers’ comp self-insurance obligations, license and permit, public official, and court bonds. These bonds are generally secured by entities that require bonding due to legal issues, government regulations, or requirements that may take the place of insurance or letters of credit. Regardless of type, surety bonds provide a

This fire station was completed by Diversified Construction on Crystal Lake Road in Willow.

mechanism for ensuring a project gets completed if a principal goes out of business, declares bankruptcy, or fails to deliver for any other reason. They guarantee the surety company will step in if the principal doesn’t satisfy the terms of the contract.

Underwriting Requirements and Costs A surety bond is a function of credit extension, according to Travis Remick, vice president of underwriting for Liberty Mutual Insurance Company, one of the largest providers of surety

in the world. As such, the underwriter will generally assess what the surety industry refers to as the “3 Cs”: capital, capacity, and character. Capital includes a contractor’s financial wherewithal, liquidity, debt, and profitability metrics. Capacity involves a contractor’s experience and capabilities. It entails looking at the company’s type, volume, and location of projects as well as its key managers, internal job cost controls, software, business plan, and future outlook. Character, unlike capital and capacity, is a subjective call by the underwriter. It focuses

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March 2018 | Alaska Business

The Bonding Process By Tracy Barbour

he process of securing a surety bond is shaped by a variety of factors. While there are an increasing number of alternative procurement methods, the most common is a standard design-bid-build project, according to Travis Remick, vice president of underwriting for Liberty Mutual Surety, one of the largest providers of surety in world. Using this procurement method as an example, the project owner will work with an architect or engineer to develop the scope of the project and then release a set of plans to the public for bids. Contractors who want to pursue the project will need to submit a bid, which the project owner will require to be secured with a bid bond. The contractor will then submit a bid request to his or her surety agent, who will forward it to the surety partner for review and underwriting. The underwriting process can range from simple to fairly extensive, depending on the size of the request and how usual or unusual the project is for the contractor, Remick says. For more routine job requests, the underwriter may simply want to confirm that the scope, size, on the contractor’s reputation. “We’re trying to assess what kind of people we are working with,” says Seattle-based Remick. “Do they have a good relationship with owners, subcontractors, and suppliers? How important

and location are within the contractor’s ongoing experience and capabilities. For a relatively small percentage of projects that involve larger and/or unusual jobs, the bonding process can be much more involved. The surety company will want to understand as much as possible about the contractor and project, including the contractor’s interest in the project; an overall project breakdown; key risks; primary mitigating factors; key cash flow considerations; who will manage the job and their experience with the scope; how much additional work the contractor wants to pursue if successful; and any unusual contract provisions. The in-depth assessment is entirely appropriate, given the exposure the surety company assumes when issuing a bond. “No one is going to issue that type of guarantee without doing their due diligence,” Remick says. Once the surety company approves the bid bond, the contractor would submit the project, along with the bid security. After the project is awarded, the contractor will be required to post a performance and payment bond. This effectively guarantees all of the contractor’s obligations under the contract for an amount equal to the contract amount. Typically the underwriter is their surety relationship to them, and how will they treat their surety from a communication and partnering standpoint?” The documents required for bonding will vary somewhat between surety companies. But

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will review the bid results in between the bid date and project award. Then assuming everything is in order, performance and payment bonds will be approved and issued. So how long does the bonding process take for a contract bond? It can take less than a day for an account with an established surety relationship and ongoing surety needs. “This assumes there is an active relationship and active communication between the contractor, the surety agent, and the surety company,” Remick says. However, the process can take longer for a contractor who needs a bond for the first time or does not have an active surety relationship. To properly underwrite an account, the surety company will need various documents and information. If the contractor has the information readily available, the process can take less than a week. But it could take much longer if some of the information needs to be prepared, if there are any underwriting challenges, or if the surety requires an in-person meeting prior to providing a final determination. Ultimately, the relationship between the contractor, surety agent, and surety company will have a significant impact on the bonding process. R typically, an individual can expect to provide a contractor’s questionnaire; three years of CPAprepared, fiscal year-end financial statements; and a current personal financial statement. Other key requirements might include a bank reference letter and/or a copy of the company’s bank line of credit agreement, ownership information, succession planning information, and an organization chart to include key leadership and key project managers. For commercial surety bonds, getting bonded generally has simpler documentation requirements and starts with an application. “If they were getting a licensed bond, it could be a one-page application with the contractor’s basic information,” Pobieglo says. “They underwrite the credit based on the personal credit of the owners.” In terms of the fees involved, a bid bond doesn’t cost a contractor anything. “The bid bond is provided as security to the project owner to guarantee the contractor will honor their bid, sign the contract, and provide final bonds,” Pobieglo says. “The penal value on the bid bond, if they didn’t, is 5 percent of their bid, and the owner could claim that as damages.” The payment and performance bonds are usually written together as a single bond number, with the cost covering both of them. For big contractors who use bonding frequently, the cost for these bonds is typically 0.5 percent to 1.5 percent of the contract value. But for small contractors who rarely use bonds, the rate is 2.5 to 3 percent. But contractors don’t always have to get bonded for the full amount of the contract. For example, the Alaska Department of Transportation (DOT) has a requirement that contractors only have to secure 50 percent of the cost of the contract on a performance and payment bond. So the maximum loss the surety is exposed to is cut in half, but the contractor will

Alaska Business | March 2018 www.akbizmag.com

The Miller Act mandates that federal contracts in excess of $100,000 require contractors to post performance/payment bonds to protect tax-payer dollars. Many state and city governments have adopted similar requirements. It’s fairly common for the $100,000 threshold to be used as the point of whether performance/payment bonds are required. still be charged for the bond based on the full contract value, and it is underwritten based on the full contract value. “Most of the time, if you have a bond claim on a construction project, it’s not going to be the full amount,” he says. “Most of the time, if you have a loss, it’s going to be a partial loss. For example, on a $1 million project with DOT, your bond would have $500,000 on it.” A prime example of this type of scenario is an undertaking that involved the construction of several Alaska-class ferries. The project was for approximately $104 million to build two of the ferries. “We negotiated with the ship builder, Vigor, to bond the project at $50 million, as there would never really be $104 million at risk at any one time,” Jordan explains. “The risk was one vessel at a time.” However, various entities have different bonding requirements, depending on the type and size of the project. The Miller Act mandates that federal contracts in excess of $100,000 require contractors to post performance/payment bonds to protect tax-payer dollars, according to Pobieglo. Many state and city governments have adopted similar requirements. It’s fairly common for the $100,000 threshold to be used as the point of whether performance/payment bonds are required. But some private entities require performance/payment bonds on almost any size contract—even one as small as $25,000.

Bonding Trends There are a number of interesting trends unfolding in Alaska involving the use of bonds. For instance, bonding is relatively easy to get now for qualified contractors, according to Pobieglo. The market is very soft and very competitive among bonding companies. “They are being pretty aggressive with their rates and the capacity [amount of bonding they are willing to give],” he says. “Part of it is that the surety companies have gotten very efficient at underwriting and mitigating losses. At least here in Alaska, the pool of potential good, well-run construction companies is not big. The surety companies want to work with those guys; they’re profitable for them.” Pobieglo has also noticed an increase in subcontractor bonds. More general contractors have subcontractor bonding policies, which is typically not something that is required by the project owners. “It looks good to their bonding company, and it also mitigates the risk of subcontractor failure— which could put the general contactor’s job at jeopardy,” he says. Like Pobieglo, Remick says the surety industry has been profitable in recent years and market conditions are doing very well now. “The surety market is strong, and there is ample capacity available for qualified contractors,” he says. www.akbizmag.com

As another trend, the demand for surety credit has lessened with the overall slowing of Alaska’s economy. Still, Remick says he sees a slight uptick in demand for surety bonds in private work; one that could be driven by project owners who want security in a more challenging market as well as the lending requirements of banks.

There has also been a trend of evolving alternative procurement methods in the industry, including design/build, government set-aside work, request for proposal/ short-list, and public-private partnership. “Surety companies have adapted to the changing conditions in the market and are generally prepared to underwrite any or all

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RISQ Consulting has over 60 years of combined experience providing custom insurance solutions for Alaskan businesses. Our consultants help businesses grow through RISQ’s proprietary Business HealthIQ™process, ensuring you spend time, money, and energy only on areas of your business which add value. March 2018 | Alaska Business

of these procurement methods for the right accounts.”

Working with an Agent and Bonding Company There are a number of surety companies that underwrite bonds in Alaska. Contractors can connect with a surety through an agent or broker who will have relationships with and access to the available surety markets. “If a contractor is looking for surety credit for the first time, a good agent will ask them a lot of questions to understand who they are and what their appetite is and will work to match them up with who they think is the best surety for their particular company,” Remick says. “A good surety agent will have a lot of experience and expertise and will act as a business consultant.”

A good agent will also be able to prepare the client for what information is needed, what questions the bonding company may have, and what concerns or challenges there may be in securing the desired surety credit. “They will be able to walk you through the process and give you a realistic idea of what to expect,” Remick says. That’s the role Pobieglo tries to fill for clients at Business Insurance Associates, where surety bonding comprises a significant portion of the business. Pobieglo strives to gain a thorough understanding of clients to facilitate their relationship with surety companies. “You have to know the company inside and out and be fully transparent to the bonding companies,” he says. “A lot of this is very relationship-driven, where the bonding com-

pany becomes more familiar with you over time and will extend greater limits to you.” This is the scenario that’s been playing out with Diversified Construction. The Ridges maintain close contact with Pobieglo, communicating with him almost daily. “He guides us and helps facilitate the relationship we have with the surety company,” Rachel says. “He is knowledgeable about the surety company and what they are looking for.” In addition to having a solid surety relationship, Pobieglo says contractors must have a strong commitment to their company to enhance their chance of getting bonded. He explains: “You have to be willing to stand behind your company. Bonding companies like to see contractors doing profitable work where they can grow the equity in the company and have cash on hand. They don’t want to see owners constantly pulling money out of the company.” It’s also important for contractors to have an in-house accounting system that is credible, dependable, and allows them to track the financial management of their company, Pobieglo says. Construction accounting is very unique, and there is often a long window of delay between when contractors perform the work and when they get paid for it. “Being able to appropriately manage your finances is critical to understanding where your company is,” he says. Remick advises business owners to surround themselves with quality partners who specialize in working with contractors—especially those in the construction industry. “This includes your surety agent, surety underwriter, legal representation, banker, and CPA firm,” he says. “Construction is a specialized and complicated business, but there is a significant amount of expertise and counsel available in the industry if you find the right people to work with.” It’s critical that contractors be open and candid with their communication and dealings with their surety and business partners. And they should do their best not to surprise them. “If there is bad news to share, be open and timely with the information,” Remick says. “In short, treat your surety as a partner. Most sureties appreciate and value their relationships with their accounts.” Remick emphasizes that while there’s a great deal of data and financial metrics used by surety underwriters, there is also a lot of subjective information that is factored into a surety’s decision making process. Hence, contractors must develop a strong and longterm relationship with their surety providers to put themselves in the best position to receive surety credit. “Being proactive and having a strong relationship will maximize the credit available to individual contractors,” Remick says. R

Tracy Barbour has been an Alaska Business contributor since 1999. As a former Alaskan, she is uniquely positioned to offer in-depth insight and enjoys writing about a variety of topics. 22

Alaska Business | March 2018 www.akbizmag.com

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ary Reimann does it again. The Anchorage reflexologist was key to booking the Reflexology Association of America’s 2016 meeting. Now she’s helped make all the points for the 2019 International Council of Reflexologists to convene in Anchorage as well. Mary’s love of Alaska and advocacy for Anchorage meetings makes the business case for our community, and brings visitors to town.

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Alaska Business | March 2018 www.akbizmag.com

Workspaces Morph from ‘Me’ to ‘We’

Retooling the office to increase efficiency, employee collaboration, and cost-efficiency

By Judy Mottl

he once-typical office landscape composed of cubicle mazes, closed spaces, and those coveted “executive” corner offices are becoming a thing of the past as companies look to increase collaboration, improve workflow, and create cost-efficiencies through open-space floor plans, say design experts.

Design Trends in Play A top trend is the replacement of the “Me” work environment with a “We” work environment, says Alisha Weiss, design director at Capital Office in Anchorage. Alaska companies are facing higher real estate costs as well as increasing construction costs and operational costs, so there

The administration office at the Anchorage Museum. Image courtesy of McCool Carlson Green/ © Keven G Smith Photography

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March 2018 | Alaska Business

But Me to We space isn’t the only trend taking place. Not only are companies opening up areas to save money and boost collaboration, they’re also taking advantage of the decreasing need for paper and document space: there are fewer file cabinets and less shelving and desk space needed, which means workstations can be smaller. According to Dana Nunn, interior design director for Bettisworth North, “We also see more benching solutions as telecommuting becomes more common than ever before; work zones are complemented with a variety of space types to support the many ways folks work alone, as well as in small or large teams, and often only part-time in the office with the balance on project sites or from home.” Today’s office landscape is dotted with a wide variety of work areas, from small meeting rooms and semi-private alcoves to flexible meeting rooms that support everything from large staff meetings to technology teleconferences and training programs. The workspaces are supporting several generations of workers, notes Melissa Pribyl, an interior designer at McCool Carlson Green in Anchorage. There are shifts in workplace dynamics, she explains, such as employee engagement playing a more critical role and employees having a greater say in the workplace setup.

The administration office at the Anchorage Museum. Image courtesy of McCool Carlson Green/ © Keven G Smith Photography

is a greater push to be more efficient, she explains. Technology use, employee retention, and attraction of new employee talent are also impacting workplace design. “Me space is considered an employee’s home base, their dedicated work area, and square foot allocation has been greatly reduced for individual work space,” says Weiss, as companies strive to reduce expenses and free up floor space to lease to more tenants. “When individual workspaces are reduced in size, more We space, as an amenity, can be provided for employees,” she says, adding that We spaces include work lounges, living rooms, coffee bars, phone booths, and collaboration areas. “These areas are considered work area options for employees to have a choice when considering how they need to accomplish their tasks,” says Weiss, who notes that having a choice in the workplace “allows people to change their posture throughout the day and encourages interaction with their peers to exchange knowledge or an impromptu meeting.” 26

That is enticing to the young workforce generation—who want as much mobility in their work environment as they have when it comes to social connectivity. Natasha Schmidt, principal at RIM Design in Anchorage, is also seeing the transformation from Me to We, especially within companies where collaboration and knowledge sharing are valuable assets. “A deeper look is taken to determine the needs for each space based on type of work being done, type of space, and other factors,” explains Schmidt, who serves as communications director for the Alaska Chapter of American Society of Interior Designers. “When individual workspaces are appropriately sized, shared spaces such as conference rooms, breakout or collaboration areas, respite rooms, phone enclaves, [and] fitness or lounge-style break areas can be added and utilized by everyone. This approach maximizes the usable space, allowing for more staff and a variety of amenities,” she says.

Immersive Planning Invites Interaction, Collaboration These shifts, Pribyl says, are driving “immersive planning” when it comes to interior design. Employees want privacy and to be free from distractions when necessary yet have access to collaborative and community spaces. “These changes are starting to define the workspaces by individual’s actions rather than their job function by providing immersive planning techniques that create spaces that invite interaction, collaboration, and private heads-down work,” Pribyl says. Nunn says her firm is hearing requests for amenities such as coffee bars, expanded breakrooms, shower and dressing spaces, storage areas for gear such as bicycles or cross country skis, and more casual drop-in meeting areas. Pribyl notes there is a trend showcasing hospitality and residential influences. “However, as Alaskans, we love our connection to nature and inviting, warm environments,” she says. Weiss says clients want their space to relate to their brand or culture. “Companies are asking their staff to not personalize their own space. Companies want their work environment to reflect the company not the individual. The result is a professional, less cluttered work environment that reflects the company mission and values,” she says. A New Look for Private Office Spaces Though the walled office is fast disappearing, there remains a need for private and secured spaces, says Pribyl. Providing privacy and security can be done in multiple ways, and one approach is the private room. “We often call these focus rooms, group rooms, or writing rooms. While the main

Alaska Business | March 2018 www.akbizmag.com

Image courtesy of RIM Design/by Brendan Stanley

The Alaska Communications Business Technology Center, where Alaska businesses and technology are brought together.

Image courtesy of RIM Design/ © Ken Graham Photography

“These changes are starting to define the workspaces by individual’s actions rather than their job function by providing immersive planning techniques that create spaces that invite interaction, collaboration, and private heads-down work.”

—Melissa Pribyl, Interior Designer, McCool Carlson Green

workstations may be in a more open environment, there are ways of implementing privacy with mobile partitions, sound masking systems, privacy screens, and orientations of desks,” she says. Designers also acknowledge certain job roles and positions require a more secure workspace, such as the Human Relations department. “In this scenario we could recommend an enclosed room for those individuals to share that is supplied with an additional private room to share for focus work and private meetings,” says Pribyl. On the security side, Nunn says lock and access control systems are a good approach, adding that the increasing “paperless office” is easing office security needs since documents are protected by logins and passwords rather than locked file drawers. In fact, a secured office space often isn’t necessary. “Of course, no industry has gone completely paperless, and some businesses still rely heavily on paper for the type of work they do. In that case, lockable storage [keyed, keypad, or card key] helps secure the smaller items in open workstations. For larger secure storage needs, www.akbizmag.com

which often tend to be team-based, access-control locks on designated small ‘team rooms’ can supplement the open workspace,” Nunn says. Privacy, despite the push toward a collaborative and open room work space, remains important, say designers, who note that putting employees in a private room with a door does not necessarily provide true privacy. Nunn says that without appropriate ceiling treatments, door hardware and gasketing, and treatment of the walls (including over the wall), conversations in a “private” office may actually be more easily heard and understood than amongst open workstations, where the din of daily activity helps to disguise the content of a conversation. The first consideration when establishing a private space is speech intelligibility, says Nunn. If an employee can hear the murmur of the phone conversation at the station or office next to them, but cannot discern what is being discussed, the noise is not distracting and the discussion can be considered private. Designers rely on appropriate acoustical surface treatments on ceilings and walls and smaller panels between workstations—

Interior of the Davis office building, designed by RIM Design.

as well as technology solutions like sound masking systems—to ensure an open work area supports the needs of the employee.

Critical Lighting While lighting is critical in any interior design, it takes on a greater importance in Alaska given seasonal characteristics. Alaska’s northern daylight conditions impact energy efficiency, employee health and well-being, comfort, and aesthetics. “We design in flexibility with the use of dimmable light fixtures, grouping lights together on common switches for daytime and nighttime settings [more commonly known here as summer and winter], and providing task lighting to the individuals of the space to supplement when needed for those heads down focus tasks,” she explains. Nunn says her firm’s interior designers prioritize access to views and daylight for occupied spaces, which directly impacts space planning. March 2018 | Alaska Business

A JOURNEY TO INSPIRE.

A work environment designed to support the way we interact to deliver innovation and solutions.

CMY

Image by KPB Architects

MOBILE STORAGE

HOME BASE

OPEN LEADERS

PRIVACY HUB

The leadership team is part of the open studio.

A small conference room for concentrated work.

Portable storage for working anywhere.

CONCEPT

Positioning teammates face to face creates engagement. An adjustable surface allows the individual to change postures throughout the day.

A cafe in the open workspace provides a gathering place for staff to socialize.

A welcoming touchdown area t greet guests and casual conversati A crossroad and gateway to privat meeting spaces.

Transparency fosters a natural mentorship and knowledge-sharing with the team, and promotes direct and efficient communication.

Providing quiet and private space supports focused work.

BENEFIT

Visual connection stimuliates the team environment while a palette of postures makes for a healthier, more engaged employee.

Go with the flow. Mobile personal storage provides flexibility for team members.

Encourages staff to come together; generates the sharing of ideas.

Informal contact a interaction encou impromptu cross-pollinations ideas.

“We also see more benching solutions as telecommuting becomes more common than ever before; work zones are complemented with a variety of space types to support the many ways folks work alone, as well as in small or large teams, and often only part-time in the office with the balance on project sites or from home.”

—Dana Nunn Interior Design Director Bettisworth North

LIVING ROOM

SOCIAL HUB

“The one aspect of northern light that Alaskans are quite sensitive to is the color of the light. Daylight shifts color through the day, and at our northern latitude the shift is exaggerated,” Nunn explains, adding daylight in Alaska is distinctly cool and blue in nature in the winter months, when residents are most often indoors. One trend relating to lighting is the integration of automated circadian lighting systems. “So much of our health and well-being, outlook and mood, efficiency and effectiveness, both in personal lives and at work, is impacted by our circadian rhythm. Artificial circadian lighting, which varies in intensity

Alaska Business | March 2018 www.akbizmag.com

“I” SPACE

“WE” SPACE

Individualized work areas that are task oriented, flexible, and efficient.

Areas of collaboration, team learning, and the “ah ha” moment in project delivery.

to host ions.

s of

Image courtesy of Steelcase

“When individual workspaces are appropriately sized, shared spaces such as conference rooms, breakout or collaboration areas, respite rooms, phone enclaves, [and] fitness or lounge style break areas can be added and utilized by everyone. This approach maximizes the usable space, allowing for more staff and a variety of amenities.”

—Natasha Schmidt, Principal, RIM Design in Anchorage

and promotes employee well-being,” she says.

PROJECT ROOM

LAB

A large gathering space provides the opportunity to visualize and problem solve.

Lounge furniture and shared resources foster the integration of people and information.

Technology provides unlimited global access to support project goals.

A quiet space for discovery generates positive results.

and urages

An example of We space, which promotes collaboration.

and color through the course of the day, can entrain an individual’s circadian rhythm, thereby restoring natural cycles, resulting in improved health, wellbeing, and performance,” Nunn says. Schmidt says her goal in relation to lighting design is to provide everyone in the workspace regular access to natural lighting through strategic placement of enclosed spaces and use of interior windows. “This facilitates deeper penetration of natural light into the building. We all know how Alaskans love the sun; a well-planned space with plenty of access to natural lighting supports a healthy working environment www.akbizmag.com

Embarking on Design Designers advise clients to not jump into changing wall colors and rearranging furniture, instead recommending they map out a full strategy before any decisions are made. That’s where the experience of a professional interior design expert will prove valuable as most company leaders are not knowledgeable in all the aspects that come into play. In fact, many companies view an interior designer as being an interior decorator, notes Weiss, and that’s not accurate. “Designers hold a National Council for Interior Design Qualification and are included in the beginning, starting with the programming phase and moving through space planning as well as construction documents, permitting, and construction administration,” she explains. “They coordinate with mechanical engineers and electrical engineers. It is important to hire the designer that will successfully meet your project goals and vision.” A good first step, says Weiss, is to identify what triggered the project and investigating project goals, vision, schedule, and budget. “Clients should share business goals with the design team. Design impacts employee well-being, recruitment, and retention as well as the energy shared by the staff,” she says. Pribyl recommends taking a holistic approach to design, considering both the bottom line of the company and the return on investment the company will receive by sup-

porting their employees with a healthy, happy place to work. “Spaces that are designed with health and wellness in mind increase productivity, improve staff retention, decrease absenteeism, and reduce healthcare costs to name a few [benefits]. These cost [reductions] can dramatically increase your return on your investment,” she says. A big part of a design effort is cost, and providing pricing insight is dependent on dozens of variables, say the design experts. Weiss recommends sharing the budget with the design team at the very start so the team can work “into the budget,” thereby saving on design costs through fewer redesigns. Pribyl concurs, noting costs are rapidly changing today to reflect the unique Alaska environment. “Assigning a number is very hard to do without knowing the construction type and the existing conditions, if any,” she explains. Additionally, company leaders should involve staff and employees since they’ll be working in the redesigned space, notes Weiss. “It is always important for leadership to communicate with the staff by identifying the vision, goals, and schedule of the project,” she says. “Keeping a positive outlook and building excitement is important for a successful project.” R

Judy Mottl writes about important issues country-wide with an affinity for Alaska. March 2018 | Alaska Business

ENVIRONMENTAL

Photo by Tamás Deák

KPB Architects designed the Nursery Greenhouse for the Alaska Botanical Garden, which has several sustainable features.

Sustainable Design Thoughtful planning benefits owners and community

By Tasha Anderson

’ve had the distinct pleasure of interviewing many professionals that build and design Alaska’s infrastructure, and in those meetings I’ve learned two interesting facts: engineers always bring notes to an interview and when building a thing—bridge, runway, port, colosseum—whether or not it can be done in strictly practical terms is generally a non-issue. Modern construction is a marvel, with new innovation and technologies pushing forward what “can” be done almost daily. No, what limits every project in the real world is how much money is available. Even massive projects, such as the proposed Alaska LNG line, currently estimated to cost $40 billion to construct, will work within the constraints of a budget, or possibly may not be constructed at all for that exact issue. This changes the question from what can be done to what should be done: which aspects of the project are most important, where do compromises need to be made, and what choices best suit the owner, the community, the infrastructure itself, and the 30

environment. This fundamental question of design, what should be done, is the essential jumping off point when looking at sustainable design. What can be done? Almost anything. So what are we choosing to do? Tamás Deák, a principal at KPB Architects, describes sustainability as “the acknowledgement of the responsibility of being good stewards of the land and communities,” and sustainable design then includes “doing everything you can in any project to try to use your best means, methods, technology, and design, and in my case ecological systems, to make that project as sustainable as possible within its context. Context is everything; every building context is different and therefore the expression of sustainability is different.” Significant to Deák is the idea that every project can have elements of sustainability, whether or not it includes sustainable check-box items such as alternative energy sources or sustainable materials. Deák says, “The funny thing about sustainability that somehow we only perceive something as sustainable when we see it. When we have our buildings with the solar photovoltaic panels

on top, then everyone says, ‘By golly, we have sustained ourselves to the hilt!’ But that’s just one aspect of many.” He resists the notion that there is non-sustainable and sustainable work. “Sustainability is not necessarily a separate thing—good designers practice sustainability innately and not as a feature that is added to the design services requested from a client.” Deák has worked with Cook Inlet Housing Authority (CIHA) on several projects that have a range of sustainable sensibilities. CIHA’s mission is to promote independence through housing, and that goal informs every decision the organization makes about how its infrastructure should be designed, built, and maintained. CIHA Vice President of Project Management & Construction Mark Fineman says part of what he enjoys about his job “is that we get to push the envelope in a lot of different areas, including alternative energy and sustainability. Our mission drives us to be responsible developers in the sense that we create and make sure [our projects] match the environment.” Fineman uses 3600 Spenard, one of CIHA’s recently completed projects, as an example. It’s

Alaska Business | March 2018 www.akbizmag.com

Photo by Tamás Deák

The south entrance of the Z.J. Loussac Community Building at Loussac Place, a development by Cook Inlet Housing Authority. One of the building’s sustainable features is a LED lighting package, which was uncommon when it was designed.

a mixed use property on the corner of Spenard and 36th Avenue, with retail spaces for lease on the first floor and residential apartments on the second and third floors. Deák worked on the building, which sits on a lot Fineman describes as “a really difficult site shaped like a slice of pie.” Instead of fighting the odd shape, “they [KPB Architects] designed it following the curve of Spenard, included a lot of windows, and were very thoughtful on how they placed the building on the site and designed the units.” Deák says that one aspect of sustainable design is simply making sure a project fits its surroundings, which can often be done at little or no cost. “With my skill set, I’ll sit down and I can work up a better plan, in terms of sustainability, within probably the same parameters… If you have a mountain on one side of the building, it’s fairly silly to have solid walls put against it, because you just diminished one aspect of being happy in the unit, which is looking at a beautiful mountain. How hard can it be to move the window [while designing]?” Beyond alternative energy, using a resource, which can be the building itself, to its full potential is a way of thinking sustainably. Adam Wilson is a senior mechanical engineer with RSA Engineering. He divides common ideas of sustainability into a narrow view—what it takes to operate a facility longterm—and a broad view of how the building has a full life, it’s impact on the community, what resources are being used, and how they’re being sourced. “Is the building pulling in so many resources that it’s causing stress to the community around it? Are there other entities in need of those same resources? What’s the general feel of the building, what are people’s interactions within it, do they want to be there, and are they proud to have a building like this in the community,” he asks. Moving a window just to take advantage of a scenic view rests firmly within the broader picture, but for those using the www.akbizmag.com

building, that simple change has vastly improved the facility’s value. As a mechanical engineer, Wilson is generally involved in what he would call the more narrow view, the long-term operations of a building, which means he is often looking at what one may traditionally consider sustainable aspects such as alternative energy sources or high efficiency building systems. He says, “Some owners are becoming more savvy about sustainability, understanding that it may cost a little more right now, but for the next twenty or thirty years the cost of operations will be less, freeing up money that can be put toward another project.” Wilson says he primarily works on commercial projects. One large project he’s working on with significant sustainable elements is the Paul John Calricaraq project in Bethel, which includes construction of a new clinic building as well as renovation of the current hospital, and both buildings must be certified LEED silver. Funding for the project comes in part from Indian Health Services, which requires the certification. “They want

to show they’ve done their due diligence and are being responsible for the projects they’re supporting,” Wilson says. He continues that this is perhaps the largest project requiring LEED certification that RSA Engineering has worked on, providing design and documentation services for HVAC, plumbing, light and power systems, data, and telecom. “Building a sustainable building is not difficult,” Wilson says. “You just need to know ahead of time that’s what you’re doing and what your goal is and have some clear criteria.” As a mechanical engineer he works primarily with energy sources and systems, but, he says, “I’ve been in this industry long enough and have been involved with sustainable designs to enough of an extent to understand that the building envelope is really the first line of defense. If you can start strong there, a lot of other pieces fall into place.” With a strong building envelope, Wilson can then source smaller, more efficient, or alternative systems to keep the building comfortable and functional. “So it’s not difficult. There are a lot of details to pay attention to, but they pay off.” CIHA’s Fineman says the housing organization looks at many levels of sustainability, but one that is critical to their mission is at that focused, narrow level of what can be done to minimize operational costs. “From an operational perspective we’ll put on siding that requires low maintenance [metal siding instead of T1-11, for example] or we’ll use carpet tile and vinyl tile instead of a sheet product, so if something happens we don’t have to remove the whole floor,” and CIHA regularly integrates alternative energy into their buildings. 3600 Spenard features photovoltaic panels that power the building’s common area lighting as well as other common systems. That property also uses ground source heat pumps to heat the building and cool the units in the summer. “It means not only less cost for us, from an operational perspective, but also more electricity available to others and less power that needs to be generated,” Fineman explains. Sezy Gerow-Hanson, CIHA’s director of public and resident relations, says, “Minimizing all those operational costs is great as an owner/landlord, but it also allows us to help keep those rent costs down. If we don’t have to pay so much to light common hallways and light the parking lot, we A recently constructed pedestrian bridge that completed the restoration of Chester Creek at Muldoon Road; made of wood and steel, the bridge helps provide recreational opportunities to local residents, contributing to local health and well-being. Photo by Tamás Deák

March 2018 | Alaska Business

3600 Spenard, located at the corner of Spenard Road and 36th Avenue, is a mixed-use retail and residential building. The large windows face the mountains, providing residents stunning, natural views.

don’t have to pass through that cost or increase.” She explains that supplementing with alternative energy also helps keep utility bills more stable from month to month, which is important for the clients CIHA serves. In the broad community and environmental view, CIHA has a strong history of revitalizing properties. “We like to say sometimes that we buy the properties and develop properties that no one else will,” Fineman says. CIHA will buy residential or commercial properties that require building demolition or even remediate contaminated sites, sourcing funds that will specifically allow them to turn damaged, unwanted lots into beautiful residential or community spaces. “We don’t just look at the site,” Fineman continues. “We and our designers look at what’s around the site and then we try to design to that, to use the land and to design something that goes with the surrounding property and the property itself.” Gerow-Hanson agrees, calling it “an evolved holistic view,” as CIHA carefully considers how development will impact the site, their neighbors, and the community at large. “We [also] think about how our properties and parking relate to one another… and as we try to build more densely that becomes more important.” Buildings that are busy during different times of the day or week may be able to use the same parking lot instead of building two, for example. CIHA’s attention to the big picture fits well with Deák’s personal passion for broad-view sustainable development. “With the environmental impacts of building, sustainability is extremely important for the practitioners of the design professions that shape our environment. I tend to think that sustainability has to be approached from an ecological point of view.” To him one of the most important environmental aspects to consider is water. “What do you do with water coming from above, going off the property (or not), and how that affects anything downstream? Does it pollute creeks, 32

does it flood the neighbor, does it dry out a wetland, [or] did I just ruin a cultural landscape by putting some atrocious thing in the middle of it?” At 3600 Spenard, for example, surface runoff is directed to rain garden areas that absorb and filtrate the water instead of being discharged into the storm water system. Wilson says, “The creativity and the experience of architects in Alaska lends itself well to systems and designs—having to work in Arctic environments were the wind is blowing six months out of the year in zero degrees or less and really knowing how to build a structure so it’s going to retain its heat… There have been major gains that have been made in great building techniques.” Wilson, in addition to his mechanical engineering work, finds the broad implications of sustainable design intriguing. “I’ve spent a lot of time over the last couple years doing work in Alaska, seeing how buildings are designed and how they’re maintained; if I could be so crass and really practical in the right now, we spend a lot of money on building and maintaining facilities that I don’t fully believe we need to be spending all this money on.” He has seen examples of infrastructure that are built beautifully, work well, and meet their purpose, but have design aspects that turn into a long-term costs for the community or utilize resources that could have been put to another project. “It’s really nice to have a beautiful building, and we want to create buildings that are inviting and comfortable, but we need to make sure that we’re doing it in a way that’s also being responsible with the resource that same community is going to have to apply to maintaining the structure. There’s a responsibility on us as designers to make sure we’re thinking of those things for our clients.” He explains that RSA Engineering has a set of in-house standards it applies to every project, ensuring their clients receive all the benefits of their expertise when looking at issues such as these.

Wilson says, “I’m really encouraged at the direction that Alaska is heading when it comes to sustainable design. We’ve hit this tipping point where people are seeing the benefits of using, specifically, alternative energy sources. It’s really not as crazy expensive as we thought it would be to put those in, or it’s not as difficult to maintain and operate these things as we thought that it would be. There are a lot of people that are just intrinsically motivated as well as those that are financially motivated, and there are opportunities now to consider other ways of sourcing energy. I’m encouraged, I think it’s cool and there are a lot of opportunities for innovation.” Deák says that sustainable design can absolutely benefit the owner financially, but he says the savings aren’t in design fees: “sustainable design can save tremendous amounts of money if measured on a life-cycle cost basis… The question consistently is initial development cost versus life cycle cost when evaluating sustainably designed projects over conventional ones.” For CIHA, the investment in focusing on several levels of sustainability has proven valuable. Fineman says, “We continue to evolve… When we put in a ground source heat pump system down in Seldovia, we were realizing tens of thousands of dollars in savings from not having to use the fuel oil, and the payback for installing that system was just a couple of years. It was really an easy decision and it was nice that it was validated—what we had seen on paper ended up being true in real life. And I think we see that across the board in the measures that we’re taking. Some of them are really easy, some of them do take some capital funds to do, but some of them don’t. And it just helps us longterm to continue on with our mission.” R Tasha Anderson is the Associate Editor for Alaska Business.

Alaska Business | March 2018 www.akbizmag.com

John Schweiker TITLE: Account Executive LOCATION: Anchorage, Alaska DATE HIRED: June 12, 1984 NOTES: A 2016 Presidential Award winner. Active in the Big Brothers Big Sisters of Alaska. Big Brother to 2nd Lieutenant ~ a, USAF, since he was 8 years old. Lives happily Pedro Pen with his wife Nancy and their cats, Princess and Abby.

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

SPECIAL SECTION

Building Alaska

2018 Alaska Construction Spending Forecast

Dear Alaskans, The Construction Industry Progress Fund (CIPF) and the Associated General Contractors of Alaska (AGC) proudly offer the Alaska Construction Spending Forecast as a guideline to construction activity and its effect on the 49th State in the year ahead. Under a special arrangement with the Institute of Social and Economic Research (ISER) at the University of Alaska Anchorage, Scott Goldsmith and Linda Leask have again compiled and written the forecast. The Alaska Construction Spending Forecast reviews construction activity, projects, and spending by both the public and private sectors for 2018. CIPF and AGC are proud to make this publication available annually and are confident it provides useful information for many of you. We recognize in these times of economic uncertainty there is a likelihood of reduced construction activity, and some of this information contained herein may change. The construction trade is Alaska’s third largest industry, paying the third highest wages, employing more than 15,000 workers and contributes $6.6 billion to Alaska’s economy. The construction industry reflects the pulse of the economy, and when it is vigorous so is the state’s economy. Therefore, it is imperative to keep building and repairing necessary infrastructure laying the groundwork for the future. AGC is a nonprofit, full service construction association for commercial and industrial contractors, subcontractors, and associates. CIPF is organized to advance the interests of the construction industry throughout the State of Alaska through a management and labor partnership.

Larry Bell CIPF Chairman

Dalton Highway reconstruction, MP 379-397. Image by Cruz Construction

The total value of construction spending “on the street” in Alaska in 2018 will be $6.6 billion, up 4% from 2017.1, 2, 3 The increase is due to a recovery in Petroleum sector spending which will grow 15% to $2.6 billion from its low of $2.2 billion last year. All other construction spending will be $4 billion, a decline of 2% from $4.1 billion last year. Private spending, excluding petroleum, will be about $1.5 billion, down 5% from $1.6 billion last year—while public spending will decline 1% to $2.5 billion. Wage and salary employment in construction will decline 3% to 14,500.4

fter falling by half in the last two years, spending by the petroleum industry will start to recover because of the rise in the price of oil and more support for the industry from the federal and state governments. Civilian federal spending in Alaska, most of which funnels through state and local government, fluctuates little from year to year and thus tends to stabilize the size of the construction budget. Military-related spending is more variable, and in recent years has been growing, largely due to the Missile Defense program and most recently the assignment of two F-35 fighter plane squadrons to Eielson Air Force Base outside Fairbanks. Local and state government spending— particularly state—will continue to contract. But since the state capital budget now consists almost entirely of the match required for the state to get federal transportation funds, it is close to bottoming out. The unexpended funds from prior year capital appropriations are almost entirely gone. By contrast, local government spending remains relatively stable. GCI Terra Ring closure. Image by STG Inc.

The non-petroleum basic sectors of mining, tourism, seafood, and air cargo are expanding, thanks to the strength of the national economy, and that growth will be reflected in modest increases in construction spending in these sectors. Construction in the rest of the private economy will suffer another year of contraction because of the continued poor performance of the state economy. Alaska’s population declined in 2017, and the current recession is expected to continue into 2018. As in past years, some firms are reluctant to reveal their investment plans, because they don’t want to alert competitors; also, some have not completed their 2018 planning. Large projects often span two or more years, so estimating “cash on the street” in any year is always difficult—because the construction pipeline never flows in a completely predictable fashion. Tracing the path of federal spending coming into Alaska without double counting is also a challenge, and because of the complexity of the state capital budget, it is always difficult to follow all the flows of state money into the economy.

2018 Alaska Construction Spending Change TOTAL $6,567,000,000 4% TOTAL EXCLUDING PETROLEUM $4,012,000,000 -2% PRIVATE $4,068,000,000 7% Petroleum $2,555,000,000 15% PRIVATE EXCLUDING PETROLEUM $1,513,000,000 -5% Mining $239,000,000 6% Other Basic $110,000,000 10% Utilities* $539,000,000 4% Hospitals/ Health Care* $275,000,000 -14% Other Commercial $125,000,000 -17% Residential $225,000,000 -17% PUBLIC $2,499,000,000 -1% National Defense $630,000,000 11% Highways and Roads $667,000,000 6% Airports, Ports, and Harbors $387,000,000 3% Education $235,000,000 -20% Other Federal $270,000,000 -2% Other State and Local $310,000,000 -16% *Many projects in these categories are supported by public funds. Percent change based on revised 2017 estimates. Source: Institute of Social and Economic Research, UAA.

We are confident in the overall pattern of the forecast—but as always, some surprises can be expected as the year progresses.

Privately Financed Construction Petroleum: $2.56 Billion The outlook for petroleum-related construction spending in 2018 is brighter than in

Finishing edge concrete at the Klatt Road Roundabout. Image by QAP Our revised projection for 2017 was $6.3 billion, lower than the original estimate of $6.4. This revision is primarily the result of lower than anticipated oil and gas spending. We define construction spending broadly to include not only the construction industry as defined by the U.S. Department of Commerce and the Alaska Department of Labor, but also other activities. Specifically, our construction-spending figure encompasses all the spending associated with construction occupations (including repair and renovation), regardless of the type of business where the spending occurs. For example, we include the capital budget of the oil and gas and mining industries in our figure, except for large, identifiable equipment purchases such as new oil tankers. Furthermore, we account for construction activity in government (like the carpenter who works for the school district) and other private industries. The value of construction is the most comprehensive measure of construction activity across the entire economy. 3 “On the street” is a measure of the level of activity anticipated during the year. It differs from a measure of new contracts, because many projects span more than a single year. 4 Alaska Department of Labor 1 2

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March 2018 | Alaska Business

BUILDING ALASKA SPECIAL SECTION | CONSTRUCTION SPENDING FORECAST

OVERVIEW

BUILDING ALASKA SPECIAL SECTION | CONSTRUCTION SPENDING FORECAST

Riverview at the Bluffs-Denali. Image by KLEBS Mechanical

the last two years. There will be an upturn toward the end of 2018, during the winter season, due to a number of factors. Those include favorable federal and state policy, recent discoveries, a large inventory of projects, price recovery, and cost-cutting. Perhaps the most significant recent federal policy change affecting Alaska is the decision to open the 1002 region of the Arctic National Wildlife Refuge to exploration. That decision—along with the opening of federal offshore lands (OCS) to leasing—will not immediately lead to spending, but it does demonstrate a renewed federal interest in the petroleum industry in Alaska. Of more immediate effect is the possibility that the area within the National Petroleum ReserveAlaska (NPR-A) open to exploration will increase. Production has already begun there, and a new report from the US Geological Survey concludes there may be much more recoverable oil in NPR-A than previously thought. Exploratory work is proceeding at three North Slope sites where potentially huge discoveries in the Nanushuk formation have recently been announced. If these prospects prove economic, they will result in billions of new capital investments in the coming years. The largest, but most challenging because of its remote location, is a discovery by Caelus at Smith Bay. Repsol, in partnership with Armstrong (and Oil Search), is investigating a large discovery at its Pikka unit. And ConocoPhillips will be studying a 2017 discovery called Willow, west of its existing projects in NPR-A. When the price of oil collapsed in 2014, a number of North Slope projects under development were postponed as producers waited for improved market conditions. Now that the oil price has increased and costs in the oil 5

patch have fallen—estimates for the North Slope range up to 40 percent for oil production—producers will be moving forward with some of these projects. (For example, Eni recently received a federal permit to drill offshore in the federal OCS at Nikaitchuq North, and Brooks Range Petroleum is moving forward to develop the Mustang field.) In addition, in the last few years a number of firms, particularly those active in Cook Inlet, came to depend on receiving cash from the state government’s tax credits. But the fiscal situation of the state slowed the payment of those credits, and some of these companies (Furie in the Kitchen Lights unit and Blue Crest Energy in the Cosmopolitan unit) were forced to suspend operations for lack of funds. The state has now proposed a bond sale to pay the $900 million of outstanding credits this year. If that happens, it will pro-

vide a boost, particularly in Cook Inlet. Finally, production has increased for the last three years (fiscal years) in a row. That may partly be the result of the new state production tax. But cost-cutting and the introduction of new technologies—particularly at the legacy fields at Prudhoe Bay, Kuparuk, and Alpine—have also been important factors. Of the three major leaseholders ConocoPhillips will continue to be the most active, both at Kuparuk and its new projects at Greater Mooses Tooth. BP is not exploring but rather concentrating on operating efficiency to maintain production at Prudhoe Bay. ExxonMobil will begin to expand its development at Point Thomson. Hilcorp will be active at Northstar, Milne Point, and Endicott. In addition, it is working on a plan for developing the Liberty prospect. Other smaller producers and operators on the North Slope include Accumulate Energy Alaska, Great Bear, Glacier-Savant, and the North Slope Borough. Spending in Cook Inlet will be less this year as explorers wait for the state’s decision on paying tax credits. Expenditures will again be dominated by Hilcorp, which will be concentrating on new production wells, repairs, workovers, and replacing facilities. Other lease owners and operators in Cook Inlet, like the Municipality of Anchorage and ConocoPhillips, will continue to spend on investments to optimize production. Elsewhere in the state, Doyon Limited will continue to explore for gas at its site near Nenana, and Ahtna will be looking for gas for the local market at a site near Glennallen. Pipeline-related expenditures will include maintenance and upgrades by Alyeska, as well as construction of an oil pipeline across Cook Inlet by Hilcorp to allow retirement of the Drift River Oil Terminal.

Mining: $239 Million Spending by the mining industry—on exploration and development5, as well as maintaining and upgrading existing mines—will

St. Paul Breakwater repair and maintenance dredging. Image by Kiewit Infrastructure West Co.

Excluding exploration and development costs associated with environmental studies, community outreach, and engineering.

Alaska Business | March 2018 www.akbizmag.com

Image by GHEMM Company

Alaska Airlines will continue its $100 million program, upgrading its terminal facilities throughout the state and completing construction of its new hangar in Anchorage.

Utilities: $539 Million6 Utility spending will be up slightly this year. Although there are no new large projects anticipated for the major electric utilities, they continue to spend on maintenance and upgrades of existing facilities. GVEA (Golden Valley Electric Association) is finishing up work on its Healy 2 unit. Utility spending on renewable-energy projects continues. Upgrades to the Terror Lake project in Kodiak and Bradley Lake are ongoing, but the expansion of the Fire Island wind farm near Anchorage is on hold. Other smaller projects around the state are

Image by F & W Construction Co.

Other Basic Industries: $110 Million Alaska’s other important basic industries— tourism, seafood, air cargo, and timber—are generally healthy and expanding. As a result, their spending on construction will be higher this year. Spending on new hotels, including several in Anchorage, will be in response to the continued growth in the number of tourists visiting the state, although the boom in construction may be winding down. At least two replacement or expansion seafood processing plants have been announced for this year for Southwest Alaska. Several infrastructure improvements will also be made to deal with problems stemming from the unexpected huge salmon runs in 2017.

Fairbanks Memorial Hospital surgery room.

Alaska Regional Hospital Imaging suite improvement.

still funded by the state Renewable Energy Fund, but no new money is being added to that program. No significant expenditure related to gas utilities is projected as development of the gas distribution system for Fairbanks awaits a final financing plan from AIDEA. Telecommunications spending will be a little higher this year, as firms make expenditures to improve the quality of service. This sector’s spending in Alaska benefits from funds generated by the Universal Service Funds, which channel revenues collected from services provided in other locations to help pay for needs in Alaska.

Hospitals & Healthcare: $275 million Hospitals and healthcare facilities will continue to spend on expansions and upgrades this year but at a slower rate as some large projects are completed. No new large projects have been announced for the large public or private hospitals in the state. Some hospitals are expanding facilities for drug-related health problems. Work is also continuing on the new YKHC (Yukon Kuskokwim Health Corporation) hospital and outpatient clinic in Bethel, which have a total price tag of $287 million. Healthcare facilities continue to proliferate as the population ages and federal funds for healthcare grow. Other Commercial: $125 Million Commercial construction spending consists primarily of office buildings, retail space, and warehousing.7 The level of spending from year to year can be influenced by a few large projects, like an office tower or warehouse, as well as the current and projected health of the economy. Market indicators like vacancy rates and turnover are relatively healthy, but the outlook is fragile.

Although we include utilities and hospitals/health care spending in private spending, there is a significant amount of public spending for some projects in these categories. Our commercial construction figure is not comparable to the published value of commercial building permits reported by Anchorage and other communities. Municipal reports of the value of construction permits may include government-funded construction, which we capture elsewhere in this report. We have also excluded hospitals, utilities, and hotels, from commercial construction, so we can provide more detail about those types of spending.

6 7

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March 2018 | Alaska Business

BUILDING ALASKA SPECIAL SECTION | CONSTRUCTION SPENDING FORECAST

be higher than last year, as the industry worldwide continues to rebound from several years of low activity. Spending by the six major mines currently in operation will be about the same as last year as producers make new investments to increase efficiency and to develop new reserves to extend mine life. For example, Teck Cominco, buoyed by the rise in the price of zinc, is exploring a new deposit at the Red Dog mine, one of the world’s largest zinc producers. Spending for drilling and other site work will be higher this year at the several large prospects under various stages of development, including the upper Kobuk mineral prospect and the Bokan rare-metals prospect in Southeast. The three largest prospects (Donlin Creek, Pebble, and Livengood) are still in various stages of pre-construction work. Spending on other prospects will be higher this year, thanks to an improved outlook in the mining industry worldwide.

Residential: $225 Million In spite of the Alaska recession, the residential market is relatively healthy, as measured by prices and loan activity. Part of that is because less new stock has been added to the market in the last several years. Due to the continued drop in employment and out-migration of population, we expect residential construction this year to again be lower than last year. Projects with public funding will be less sensitive to these economic trends. The strongest market will continue to be the Mat-Su Borough, since it is the only area continuing to see population growth. An increase in population is anticipated for the Fairbanks area, associated with the deployment of two F-35 squadrons to Eielson Air Force Base, but deployment will not begin until the end of the year. In addition, potential private housing developers are adopting a cautious investment approach, in part due to recent Congressional attempts to close the base. The changing composition of the population is affecting the demand for housing as well. Growth of both the senior and millennial populations is increasing the demand for smaller housing units.

Image by Brice Inc.

BUILDING ALASKA SPECIAL SECTION | CONSTRUCTION SPENDING FORECAST

We expect the pace of commercial construction will slow again this year, primarily because of weakness in the economy. That weakness is reflected in the continued decline in employment (forecast at 0.5 percent for 2018), more people leaving Alaska than moving in, and flat personal income. Also compounding the situation is uncertainty about the state governmentâ&#x20AC;&#x2122;s ability to successfully deal with the deficit. One large project currently under development is a new $40 million warehouse for Odom, near the airport in Anchorage.

Dalton Highway Reconstruction MP 401-414.

Publicly Financed Construction National Defense: $630 Million Defense spending will again be higher in 2018, fueled by spending for infrastructure for the F-35 bed-down and the Missile Defense System. Most of the Corps of Engineers budget for MILCON (military spending for facilities on bases) will be allocated toward these two activities. The F-35 bed-down involves several large projects totaling about $500 million, construction of many of which will get underway this year. With ongoing projects, this is likely to be the biggest year for work at Eiel-

son Air Force Base near Fairbanks, where the F-35s will be located. Missile defense work will be split between two sites at Fort Greely and Clear. Fort Greely is where the Mission Control Facility is under construction. Clear is where the Long-Range Discriminant Radar facility will be located. Congress recently approved the addition of another field of missile silos at Fort Greely, but that will not be under construction for several years. MILCON spending also includes sustainment, restoration, and modernization work at all the military bases.

Glenn Highway Chickaloon Bridge replacement. Image by Hamilton Construction Alaska Co.

Alaska Business | March 2018 www.akbizmag.com

Image by Orion Marine Group

Spending on the civilian and other interagency programs of the Corps of Engineers will be similar to that of past years. This spending typically funds Corps of Engineer projects for other federal agencies like NOAA, FAA, and the BLM and projects done in cooperation with Alaska communities, such as harbor improvements. The environmental program budget of the Corps of Engineers, including Formerly Used Defense Sites, varies from year to year but is expected to be somewhat higher this year. This program includes cleanup of hazardous substances and contaminants at former defense sites, as well as on current Army and Air Force installations.

Transportation—Highways and Roads: $667 Million A majority of funding for highways (including the Marine Highway System) comes as grants from the federal government under a program known as the Fixing America’s Surface Transportation Act, which became law at the end of 2015. This law requires a state match for receipt of the federal funds. Some federal funds also go directly to Alaska Native tribal organization for transportation projects. In addition, the state augments federal funds for highway and road construction with an annual capital appropriation to the Department of Transportation and Public Facilities. Also, in some years the state Department of Commerce, Community, and Economic Development (DCCED) distributes grants to local governments for road construction, but little has been appropriated for grants through DCCED since 2013. Finally, the state also periodically sells general obligation bonds to support road construction as well as other infrastructure projects. The most recent bond package was approved in 2012. It can take considerable time for transportation appropriations to become cash on the street, so state funds from past capital budgets and bond sales are still contributing to current spending. Consequently, the level of spending this year will be a little higher than last. Also contributing to the increase is the re-obligation and repurposing of some previously unexpended funds. These funds will pay for major projects throughout the state on the Sterling, Seward, Parks, and Glenn highways, as well as many www.akbizmag.com

other projects. Local governments also spend on road construction and maintenance. Anchorage has a small bond issue for road construction each year and other communities also bond for road improvements on a regular basis.

Transportation—Airports, Ports and Harbors, Railroad: $387 Million Federal funds, mainly from the Federal Aviation Administration’s Airport Improvement Program, provide the bulk of funding for airport improvements both at the large international airports in Anchorage and Fairbanks and the many smaller state-owned airports across the state. This continues to be a stable source of funding that is augmented by revenue bonds and other local sources. A runway improvement project is scheduled for Anchorage and other smaller projects are scattered throughout the state. Spending related to ports and harbors will also be about the same as last year. Work on the redevelopment of the Port of Anchorage will be slow, and there will be no money to continue development of the Point McKenzie rail extension. Spending from a combination of federal funding, state general funds, the transpor-

tation bond package, tourist-related fees, and local sources will underwrite projects throughout the state, including significant activity at Dutch Harbor, Skagway, Valdez, Juneau, and Wrangell. The Alaska Railroad’s capital budget will be significantly higher this year, funded through a combination of federal grants, cash flow, and revenue bonds. The railroad is moving forward with the Positive Train Control system, mandated by the federal government.

Education: $235 Million Spending for education comes mostly from state government, and it will again be lower this year. Direct state funding of urban and rural schools will be about the same as last year but consist of renovations and upgrades without any new schools under construction. A number of rural schools are still awaiting construction, but they are unlikely to move forward this year. The legislature’s moratorium continues on the decades-old practice of reimbursing municipalities for a share of the debt they incur to build new and repair existing schools. That has more than doubled the price of new

UAA Engineering and Industry Building skybridge, constructed by Neeser Construction Inc.

March 2018 | Alaska Business

BUILDING ALASKA SPECIAL SECTION | CONSTRUCTION SPENDING FORECAST

Unalakleet Revetment Phase III.

Image by QAP

BUILDING ALASKA SPECIAL SECTION | CONSTRUCTION SPENDING FORECAST

Spenard Road Reconstruction Phase II.

schools for urban school districts. This extra cost, combined with the absence of population growth, has meant no urban districts are building new schools. Funding for schools also comes from the proceeds of local bonds in urban areas like Anchorage, Mat-Su, and the North Slope Borough. This source of funds is relatively stable and pays mostly for renovations and upgrades to existing facilities. There will be little University of Alaska construction spending on buildings on either main campus this year. The only large project will be completion of the new power plant in Fairbanks; the new engineering building there is now complete.

Other Federal: $270 Million Although the largest categories of federal construction spending in Alaska are trans-

portation grants (highways and airports) and national defense, there are several other sources of federal spending that contribute to construction activity. The largest of these is a series of grants that support housing and safe water programs in the state—and because these grants have been stable over the years, other federal spending has tended to be constant from year to year, as will be the case in 2018. Most of the funding for the state-administered Village Safe Water program for rural sanitation comes from federal sources, including the Environmental Protection Agency and the Indian Health Service. With the state contribution, it is expected to be constant this year. Other types of federal grants to the state fund armories and veterans’ facilities, among other things. The federal government also provides con-

Cornerstone General Contractors was the contractor for the Wasilla Public Library.

Alaska Business | March 2018 www.akbizmag.com

it also includes other construction such as buildings, libraries, museums, recreational facilities, and solid waste facilities.

Construction in the Overall Economy Construction spending is one of the important contributors to overall economic activity in Alaska. Annual wage and salary employment in the construction industry in 2017 was about 15,000 workers, with average annual pay of $75,000, exceeded only by petroleum and mining. But that figure doesn’t include the “hidden” construction workers employed in other industries like oil and gas, mining, utilities, and government (force account workers). In addition, it does not account for the large number of self-employed

construction workers—estimated to be about 9,000 in 2011. Construction spending generates activity in many industries that supply inputs to the construction process. These “backward linkages” include, for example, sand and gravel purchases (mining), equipment purchase and leasing (wholesale trade), design and administration (business services), and construction finance and management (finance). The payrolls and profits from this construction activity support businesses in every community in the state. As this income is spent and circulates through local economies, it generates jobs in businesses as diverse as restaurants, dentist’s offices, and furniture stores. R

Other State & Local: $310 Million State and local government capital spending—excluding transportation (roads, airports, ports, and railroad), education, health, and energy—will again be lower this year. Many projects have been funded in recent years through grants from the Department of Commerce, Community, and Economic Development to local governments and nonprofits throughout the state. These funds have mostly been expended. The state capital budget now consists mainly of the match necessary for federal transportation funding for roads and airports. It also has a small amount for facilities maintenance, but the backlog of deferred maintenance, roughly estimated at $1.8 billion (primarily buildings and including the University of Alaska), continues to grow. The governor has proposed to augment the regular capital budget for the next three years with a special appropriation funded by a temporary payroll tax (the Alaska Economic Recovery Act). It is estimated this tax would provide $800 million over a three-year period that would leverage a total of $1.4 billion in capital spending to be used primarily for deferred maintenance. Because funding this program would require a new, although temporary tax, its implementation cannot be assured. And if it were implemented, the construction spending it produced would only begin to hit the street toward the end of this year. Local government capital spending, from general funds and bonds as well as enterprise funds, direct federal grants, and foundations, tends to be stable from year to year. A large share of this spending is for water and sewer facilities, which this year will include a new water treatment facility at North Pole, but Federal spending on health care projects for the Alaska Native community funneled to Alaska Native organizations is included in the Hospital/Health Care section of this report.

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March 2018 | Alaska Business

BUILDING ALASKA SPECIAL SECTION | CONSTRUCTION SPENDING FORECAST

struction grants to Alaska tribes, nonprofit organizations, and local governments across the state.8 Alaska Native nonprofit corporations, housing authorities, and healthcare providers receive most of this money. The largest of these programs in Alaska is the Native American Housing Assistance and Self-Determination Act, which provides assistance for housing construction in Alaska Native communities through grants to federally recognized tribes and Alaska Native housing authorities statewide. Direct procurement by federal agencies like the Department of the Interior (National Park Service, US Fish and Wildlife Service, and Bureau of Land Management), the Postal Service, the Department of Agriculture, and the National Oceanic and Atmospheric Administration also provides funding for construction each year. The Denali Commission—a federal-state partnership Congress created in 1998 to more efficiently direct federal capital spending to rural infrastructure needs—continues to have a small annual budget.

SPECIAL SECTION

Building Alaska

Pat Reilly, majority owner of Rain Proof Roofing. Â© Judy Patrick Photography

Alaska Business | March 2018 www.akbizmag.com

BUILDING ALASKA SPECIAL SECTION | EXECUTIVE PROFILE

Rain Proof Roofing An Alaskan Success Story By Tasha Anderson

atrick Reilly is a lifelong Alaskan. When he graduated from West High School in the early seventies he was “working odd jobs in construction” while dating April Markley, who would later become his wife and business partner. April’s father, Jack Markley, then-owner of Rain Proof Roofing, needed short term help in September 1973 and asked Reilly to be a laborer on one of his crews for a couple of weeks. “I didn’t really want to do it,” Reilly laughs, “But I did it, and ‘the rest is history.’ I didn’t really want to work for him because I was dating his daughter, but it worked out. It’s worked out.” Reilly knows the business from top to bottom, which makes sense because he worked his way from the bottom up. “I started as a laborer on one of the crews, [moving on] to shoveling gravel, then to shingling, and then running a crew, and when my father-in-law decided he wanted to retire he turned the business over to me and my brother-in-law,” Reilly says. Markley founded Rain Proof Roofing in 1962; in 1978 Reilly began running the company and in 1983 the Reilly’s bought out Markley and Pat became Rain Proof Roofing’s president. The company has grown in almost every aspect since ’62, when it primarily provided residential roofing services. As just one indicator, when Reilly began work in ’73 the company had six trucks, when he took over as president it had fifteen, and today it has about fifty.

On the Business of Roofing Rain Proof Roofing provides residential and commercial roofing services. “We cut our teeth in the residential market and the new construction market back in the sixties and seventies when it was booming,” Reilly says. Shortly thereafter “we had that big surge of construction in the seventies and then again in the eighties,” and as opportunities presented themselves Rain Proof Roofing expanded into the commercial market. At present approximately one-third of the company’s business is residential and two-thirds is commercial. “About half the residential is new construction and half is reroof,” he clarifies. The average lifespan of a roof is about twenty or twenty-five years, Reilly says, so www.akbizmag.com

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there’s a steady supply of roofs needing to be repaired or replaced. On a day-to-day basis one of the first things Reilly does is check the weather, which has a significant effect on the company’s workflow. Rain Proof Roofing’s work is highly seasonal. “We don’t do reroofs in the winter; it’s not cost-effective and you don’t get the same [quality of] job as you do in the summer. Roofing doesn’t perform well in the cold.” Typically the roofing season kicks off in May and runs until the snow begins to fall. “Halloween, Thanksgiving, somewhere in there is our big push, and then between the darkness, the cold, and the snow, it forces you to slow down,” he says. Winter work at the company generally includes some new construction, finishing up jobs that can’t be halted, or performing emergency repairs or maintenance. The business scales down in winter to approximately sixty employees, building up to about one hundred in the summer months, Reilly says. Once summer hits, even with an expanded crew, the company works long hours and employees clock in quite a bit of overtime. “The crews are working six or sometimes seven days a week up to ten or fourteen hours a day when we can.” Even with this yearly fluctuation, Rain Proof Roofing has a good number of longterm employees, which can be unusual for the industry. Reilly says retaining quality employees often boils down to just treating them well. “We offer health insurance, and we’ve always been a company that pays a fair wage. We have developed a lot of good, loyal employees and we treat them fair.” It helps that Rain Proof Roofing does have continuous work throughout the year, allowing the company to retain a good number of employees outside of the busy season. Reilly’s philosophy of leadership contributes to the company’s ability to retain quality workers. “[As a leader] you have to lead by example. I’m an old-fashioned guy: you just be polite, treat people with respect, and don’t ask them to do something you wouldn’t do or haven’t done.” He says there are three essential qualities that Rain Proof Roofing values in their employees: they’re honest, they “show up,” and they’re engaged. “You have to take pride in what you do. If you don’t take pride in what you do, you’re not going to do a good job,” he says. “Roofing is not the most glamorous career in the world, but I always tell everybody, ‘Hey, without us, everybody would be miserable because they would be wet.’ Wet and cold,” he laughs. Rain Proof Roofing maintains their own sheet metal fabrication shop at their Anchorage facility, fashioning all their own sheet metal in addition to providing services to contracting customers and walk-in clients. The shop primarily fabricates metal roofing panels, flashing, or trim but can construct custom pieces. The company’s primary location is the Anchorage facility, but they also have an office in Wasilla, as well as yard facilities in Soldotna and Fairbanks. Rain Proof Roofing has worked across the state for thirty years. “We’ll chase

Alaska Business | March 2018 www.akbizmag.com

—Patrick Reilly, President, Rain Proof Roofing

private work, new construction, reroof, military work, and we have a service and maintenance division that does service work, roof repairs, and emergency callout,” Reilly says. As part of their repair and emergency services, Rain Proof Roofing is a member of Roof Connect, a nationwide provider of commercial roofing services. The company’s membership means that when Roof Connect contracts with a commercial client in Alaska, Rain Proof Roofing may be dispatched to fulfill that contract. Reilly says that Outside corporations often are unaware of the unique challenges associated with working in Alaska, and it’s necessary to communicate why their expectation may not be appropriate for a job in the Last Frontier. “We’re just different up here, and we do things differently, and they don’t understand the logistics of trying to do something in Alaska.” He uses an example of a retail chain on Kodiak, which may call up with a roof leak and ask for a Rain Proof Roofing crew to be onsite in two hours and to accept a standard service deal of $500. “But there’s a plane ticket and transportation, and here’s the other thing: with the weather, they just might not get there. Or they might get there and not get out,” Reilly says.

On Working with Clients Reilly says the amount of design work that Rain Proof Roofing performs varies significantly from project to project. However, for residential new construction work, the roof is generally already designed by the time the roofing company is brought on board, though Rain Proof Roofing will work with homeowners on color choices or grade of the shingle. “We do work with builders, if they have a complicated roof, on how to make sure that it performs properly so there isn’t snow or ice build-up or drainage problems and to make sure we get the right product in the right area.” For example, on the Hillside in Anchorage, two significant risks to a home’s structure are high winds and the potential for fire damage, so Rain Proof Roofing would suggest a high wind-rated roof that’s at least Class-A firerated or better. Rain Proof Roofing has adapted as materials change and shares that knowledge with their clients: “Years ago we used to do a lot of hand-split cedar shake roofs, but we don’t do that much anymore because they are flammable.” He continues, “Flat roofs have evolved from what you would know as a typical built-up tar roof to a single-ply roof today, which is a membrane roof that’s either glued or heat welded together.” For commercial clients, he says, Rain Proof Roofing’s participation in design runs the gamut from bidding on designed projects to being approached by a client looking for roofing options on a new strip mall. Whatwww.akbizmag.com

ever the job, “We make sure it performs to the expectation that they have,” Reilly says.

On Longevity and Awards Rain Proof Roofing has been operating—and expanding—in Alaska for more than half a century. “I think what’s made our company successful is the fact that we’re diversified. I tell everybody we do everything from a dog house to an industrial building.”

Reilly says he always keeps an eye out for good opportunities for the business. “I’m one of those people that just never says no,” he explains. “If you’re not looking for opportunities, then you’re going backwards. I’m always looking for what’s next, what’s a trend.” But more than offering a wide range of services, Rain Proof Roofing values their clients and industry relationships. Reilly says, “Treat everybody fair and with respect, and do a

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BUILDING ALASKA SPECIAL SECTION | EXECUTIVE PROFILE

“I think what’s made our company successful is the fact that we’re diversified. I tell everybody we do everything from a dog house to an industrial building.”

BUILDING ALASKA SPECIAL SECTION | EXECUTIVE PROFILE

Starting April 1, (from left to right) Chris Reilly, Jason Dial, Misty Stoddard, and Brion Hines will be operating Rain Proof Roofing, with Hines serving as the company’s president.

good job, stand behind what you do, and give them what you’re telling them you’re going to give them, and it all seems to work out.” Following this philosophy of customer service and integrity, Rain Proof Roofing has been able to weather Alaska’s tumultuous business climate, including the highs of population influx and infrastructure booms as well as the lows associated with the state’s economic challenges, including the current down economy. “We’ve been pretty fortunate over the years that we’ve survived, and we’ve not overextended at any one time.” Rain Proof Roofing has been recognized for their work routinely through the years, both through commercial manufacturers as well as industry awards. The company won the Parker Smith & Feek Excellence in Construction Award in 2014 and 2016; it was recognized in 2012 with the ConocoPhillips HSE Excellence Safety Award, and in 2014 with the Wells Fargo Excellence in Safety Award. This year Rain Proof Roofing was named a Firestone Master Contractor, in recognition of the company’s high-quality workmanship and commitment to long-term roofing system performance, an honor Rain Proof Roofing also received in 2000, 2004, and 2014. In 2015 Rain Proof Roofing achieved the Carlisle “500” Hall of Fame, recognizing the company had completed 500 consistently perfect roof installations. The company also received the Carlisle Perfection Award in 2014 and 2017, which celebrates roofers “whose exceptional installation quality results in a warranty claim 46

performance that ranks in the top 5 percent of all US and Canadian roofing applicators.” Reilly himself has been involved in the Alaska construction community for decades. He was the president of AGC of Alaska in 1999 and was honored with that association’s Hard Hat Award in 2000, which recognizes an individual “who has demonstrated outstanding contributions to the Alaska construction industry,” according to the organization.

On a Lifelong Partnership Reilly attributes the company’s long-term success in large part to his wife and business partner, April. “She always kept me in check,” he says. “She was the brains and the beauty and kept things going. I’d go do the physical work, but she did everything else.” In the early days when Reilly stepped in to run the business, he’d be in the field all day while she was in the office, and they communicated primarily through two-way radios. “I would go out and find the work and get the work done and she’d make sure the bills were paid. She’s always been an important part of our organization, and she kept the money in the bank.” April is semi-retired, working one day a week to keep an eye on the overall picture. On New Leadership Starting April 1, Rain Proof Roofing will move forward with its current leadership team comprised of family members Misty Stoddard (Reilly’s niece) and Chris Reilly (Reilly’s son) as well as Brion Hines and Ja-

son Dial, who are not blood relatives but have strong ties to the company. Reilly, who is and will remain the company’s majority shareholder, will step back, transitioning from president to chairman of the board, handing over the reins of day-to-day operations to its current leadership, with Brion Hines serving as the company’s president. “I will be the ‘big picture’ guy helping them be successful, but it’s time for April and I to move on,” says Reilly. The best part of his job, says Reilly, has been meeting good people and the satisfaction of getting the job done well and on time—“making the deal and getting [our clients] taken care of. And they know that they can pick up the phone and call us if there’s a problem and we’ll come fix it.” He takes pride in having built up and expanded the family business, as well as being engaged in the community by supporting a plethora of projects, primarily to benefit Alaska’s youth. “We’ve roofed a lot of dugouts on Little League fields,” he says. “I also believe in being politically active. You have to stay engaged in everything about the community, be involved, get out there and say your piece.” Reilly summarizes: “I’m proud of being Alaskan, I’m proud of being successful, I’m proud of my operation, and I’m proud of my crew.” R Tasha Anderson is the Associate Editor for Alaska Business.

Alaska Business | March 2018 www.akbizmag.com

SPECIAL SECTION

Building Alaska

Alaska Builds Second Six-Lane Highway Anchorage mega-project in second of three stages By Sam Friedman

A section of the New Seward Highway between Dowling Road and Dimond Boulevard during the summer 2017 construction season. During 2018, crews plan to complete most of this section of highway. A final wave of Seward Highway widening (from Dimond south to Oâ&#x20AC;&#x2122;Malley Road) is expected to commence in 2021. Image courtesy of David Song, Assistant Project Engineer, Alaska Department of Transportation and Public Facilities.

Alaska Business | March 2018 www.akbizmag.com

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Key Corridor As it enters Anchorage from the south, the Seward Highway passes near Dimond Center (Alaska’s largest shopping mall), midtown Anchorage, the University of Alaska Anchorage, and Providence Alaska Medical Center (Alaska’s largest hospital) before ending at 5th Avenue in downtown Anchorage. The original Seward Highway was built in 1952. The then two-lane highway connected Seward on the Kenai Peninsula with downtown Anchorage, along a path that sometimes parallels the Alaska Railroad tracks. The city of Anchorage itself had grown out of

a railroad construction camp established at Ship Creek in 1915. In 1952, Anchorage had recently overtaken Fairbanks as the largest city in the Territory of Alaska, but Anchorage was a much smaller city than today. Along the Seward Highway corridor, the hospital and university in the Goose Lake area didn’t open until 1962 and 1970, respectively. The Dimond Center, originally a small shopping center, opened in 1977, and the BP high rise that towers over midtown Anchorage wasn’t built until 1985. Anchorage’s population at the 1950 census was 11,254 and the city hadn’t yet swallowed

March 2018 | Alaska Business

BUILDING ALASKA SPECIAL SECTION | SEWARD HIGHWAY UPDATE

project to transform Anchorage’s major north-south highway into a six-lane road is almost two-thirds done. This summer, contractor QAP plans to finish construction on the second of three main phases to widen and improve the Seward Highway between Tudor Road and O’Malley Road. The third stage of the project is now being designed, with plans for construction to start around 2021. For more than a decade planners have been working on the busy four miles between Tudor and O’Malley, transforming the stretch of roadway into the second six-lane highway in the state.

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what is today the neighborhood of Mountain View (which had a 1950 population of 2,880). The Seward Highway remains a two-lane highway south of Anchorage, the only road from Anchorage to Girdwood, Whittier, and the Kenai Peninsula. Inside urban Anchorage, the original two-lane highway is known is the Old Seward Highway and parallels the path of the current highway. Construction of the four-lane New Seward Highway was completed in 1971, with a series of interchange expansions occurring over the next two decades. The current highway between south and midtown Anchorage is a modern “controlled access” freeway, which means drivers can only get on and leave it at a limited number of designated entrances and exits. According to a 2016 traffic study, the Seward Highway had busier sections of highway than any other road in Alaska except for the Glenn Highway. The busiest section of the Seward Highway was in midtown just north of 36th Avenue, where average daily traffic was 56,990 vehicles a day. The next busiest section was between Dowling Road and Dimond Boulevard, where traffic averaged 56,837 vehicles per day. For reference, Anchorage’s total population in 2016 was just less than 300,000 people. The busiest highway section of the state, on the Glenn Highway, averaged 65,172 vehicles per day to the east of the Muldoon Road intersection.

A Decade of Planning Planning to make the Seward Highway a sixlane highway began more than a decade ago with public meetings and an environmental assessment that was written between 2001 and 2007. The project has three main goals, says Project Manager Sean Baski, PE, with the Alaska Department of Transportation: to improve safety, to improve congestion, and to improve cross corridor connectivity, the flow of traffic on the east-west streets around the highway. The project adds two main highway bridges that will allow traffic to pass below. One is located where 76th Avenue meets Lore Road on the section of highway under construction this year. Another is where the newlyrenamed Scooter Drive will meet Academy Drive under a yet-to-be-built highway bridge. The Scooter/Academy Drive intersection is part of the final third of the project. The 2007 environmental document for the Seward Highway project covers a large section of highway from 36th Avenue on the north end to Rabbit Creek Road to the south. But the Department of Transportation focused on the middle section, from Tudor Road south to O’Malley Road. For the southern end of the corridor, the project planners decided the highway didn’t have enough traffic between Rabbit Creek and O’Malley Road to merit widening from four lanes to six. The northern end of the corridor was wrapped into a different road improvement project called the Midtown Congestion Relief project, which extends north to 20th Avenue. North of Tudor Road, the Seward Highway transitions from a freeway to a busy arterial

city street. This part of the highway is actually the busiest section. According to the project website (http://midtowncongestionrelief. com), the midtown part of the corridor also has a “long history of unfinished projects that similarly sought to address traffic congestion issues.” Work on the midtown part of the Seward Highway is in a pre-design phase. The next step is a PEL, or planning and environmental linkages, study. An open house to discuss the project was held in January.

Introducing the ‘Diverging Diamond’ and a Street Named for a Cat The new Seward Highway expansion plans call for a style of interchange that’s relatively new to Alaska, the “diverging diamond.” In this style of interchange, drivers make a figure eight type path, temporarily switching to the left of the oncoming lane as they cross over or under a highway bridge. The advantage of this intersection style is that it’s easier to make easier left turns onto the highway, because it doesn’t require crossing oncoming traffic. Additionally, it’s a relatively inexpensive interchange that can be built with budget similar to traditional diamond-shaped interchanges and in about the same space. The first diverging diamond interchange in the United States was built in Springfield, Missouri in 2009. Alaska’s first diverging diamond recently went up where Muldoon Road passes over the Glenn Highway, and drivers have been figuring it out, Baski says. “The word is things are going well,” he says. “As with any interchange, there are things to learn about it. The thing about diverging diamonds is they’re pretty intuitive. Even though you’re crossing to the other side of the highway, some people don’t even notice they’re doing anything different. You get in the left lane if you want to turn left, you get in the right lane if you want to turn right.” The next section of the Seward Highway project calls for diverging diamonds where the highway crosses over Dimond Boulevard/Abbott Road and where it crosses over O’Malley Road. The new highway will also feature a new raised section that will allow traffic to pass underneath. South of Dimond Boulevard and north of O’Malley Road is Academy Drive, a street that dead-ends at a Seward Highway access road. In this section, the Seward Highway separates Independence Park, a large neighborhood, from the Dimond Center shopping mall. There’s not currently a convenient way to cross the highway at this location, but pedestrians found a way despite fences intended to discourage them. “There are a lot of youth who cross the highway. The state has fences along this stretch and for a long time youth have gone out and clipped all of the fences on that stretch and our maintenance crews have gone out and fixed it,” Baski says. “There’s an obvious need for crosscorridor connectivity on the pedestrian front, getting across the highway. The main attractant is obviously Dimond Center mall.” When the highway project is complete, both pedestrians and drivers will be able to

Alaska Business | March 2018 www.akbizmag.com

BUILDING ALASKA SPECIAL SECTION | SEWARD HIGHWAY UPDATE

cross Academy Drive under the highway. On the west side of the highway, a short street previously known as Abbott Road has been renamed because it didn’t connect to Anchorage’s bigger Abbott Road. The new name is Scooter Drive, after a family’s cat that lived on this street. Instead of diverging diamonds, the new Scooter/Academy interchange will move traffic under the highway with a pair of roundabouts. A similar traffic pattern was built this summer to create more cross corridor connectivity where 76th Avenue and Lore Road meet under the Seward Highway. There is a pair of roundabouts and a new road under the newly-raised highway.

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Breaking Ground Construction on the northern third of the project, from Tudor Road to Dowling Road, was completed in 2013. The second third, between Dowling and Dimond, started in 2017. That section should be substantially completed by the end of the 2018 construction season, Baski says. Some landscaping and finish work may take place in 2019. To minimize traffic backup during construction during the previous two stages of construction, work crews rebuilt frontage roads along the highway first and then directed traffic down the frontage roads while working on the main stem of the highway, Baski says. The final third of the project will be more difficult because there’s no frontage road on the west side of the highway, he says. During construction, workers will build a new frontage road on the west side of the Seward Highway from Dimond Boulevard to Scooter Drive, in front of the recently-shuttered Sam’s Club store. There won’t be an access road on the west side of the highway south of Scooter Drive because the area is a residential subdivision which is accessed from the east side, on Old Seward Highway. The first two construction contracts have gone to QAP, a subsidiary of the French COLAS Group. The design contract for all three stages of the project was won by Colorado engineering firm CH2M, which was purchased by Dallasbased Jacobs Engineering Group in December. Combined, the total project cost for the three highway sections is expected to be about $280 million. The total project cost includes construction as well as design and the expense of purchasing right-of-way from landowners and relocating utilities like water pipes and electricity wires. Under a formula common with highway construction projects, the federal government will pay for 90 percent of the cost, with the state covering the remainder. State funding for the final third hasn’t yet been approved. For additional information, the website for the Seward Highway construction project is sewardhighway.info. The website for the future construction project along the corridor in midtown is midtowncongestionrelief.com. R Sam Friedman is a freelance writer in Fairbanks.

Alaska Business | March 2018 www.akbizmag.com

SPECIAL SECTION

Building Alaska

A rendering of the south entrance to Dave & Buster’s, which plans to open this month at the Dimond Mall in Anchorage.

Serving Anchorage’s Inner Child Construction on Alaska’s only Dave & Buster’s nearly complete; hiring underway By Vanessa Orr

onstruction is almost finished on the new Dave & Buster’s at the Dimond Center in Anchorage, and people are getting excited about its March opening. The first entertainment complex of its kind in the state, it not only took the vision from the mall’s owners but the cooperation of the Alaska Legislature and the efforts of a lot of skilled craftsmen to bring this project to fruition. “Alaska has been so opening and welcoming to us; it’s overwhelming how many people helped us pull this off,” says Oso Adams, 54

general manager of the Anchorage Dave & Buster’s, which will be one of the company’s largest facilities in the country.

Embracing the Vision About five years ago, Hugh Ashlock, partner and second generation owner of Dimond Center, attended a shopping center conference where he watched Dave & Buster’s CEO Stephen M. King unveil a prototype of a new company concept. “What I saw was a sports bar on steroids with a great restaurant, lots of private dining, and more experiential retail—it was a wonderful transformation of the Dave & Buster’s concept,” says Ashlock. Visiting Dallas the next day, Ashlock toured the prototype and expressed interest in bringing it to the 49th state. Roughly seven months later, the company started looking at expanding into Alaska, but there were challenges that first needed to be overcome. “We had to get the law changed in respect to gaming for prizes,” says Ashlock. “While

games of skill, like skee-ball, were no problem, any type of game that involved chance, like a Spin to Win, was considered gambling and was therefore illegal.” Senate Bill 157, an act defining arcadestyle amusement devices that was introduced by Senator Lesil McGuire, passed unanimously by the Alaska Senate and House and was signed by Governor Bill Walker, paving the way for construction on the new Dave & Buster’s to begin. But the project’s challenges didn’t stop there. “We had to figure out how to shoehorn a 50,000–square-foot addition into our shopping center,” says Ashlock. “So we decided to raise 25,000 square feet of roof on our second floor to create the arcade and midway.”

Raising the Roof While architects, engineers, and construction companies are used to dealing with the unique issues that working in Alaska presents, it’s not often that they get involved in actually raising the roof of a mall.

Alaska Business | March 2018 www.akbizmag.com

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“Customers will really appreciate the fact that we have roughly 50,000 square feet of the latest and greatest technology. We’ll have a beautiful dining room, sports lounge with HDTVs every direction you look, and hundreds of the latest arcade games for both kids and adults.”

—Oso Adams General Manager Anchorage Dave & Buster’s

“The biggest part of this project involved raising the roof about six feet to get the clearances that Dave & Buster’s needed,” explains Dennis L. Berry, PE, senior principal of BBFM Engineers, Inc. “We’ve never done anything like this before.” Berry and Greg Latreille, PE, worked on the design, using CAD technology to create www.akbizmag.com

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March 2018 | Alaska Business

BUILDING ALASKA SPECIAL SECTION | DAVE & BUSTER’S

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“For our work for Dimond Center, we used a computerized building information modeling system that allowed us to create a three-dimensional model of the building. We were able to raise the roof in the model and look at all of the other issues we needed to deal with to make the addition structurally sound.”

—Dennis L. Berry Senior Principal BBFM Engineers, Inc.

Alaska Business | March 2018 www.akbizmag.com

Rendering by Jerome Daksiewicz/ courtesy of Dimond Center

the plans. “When you think of drawings, you normally think of two-dimensional plans,” says Berry. “For our work for Dimond Center, we used a computerized building information modeling system that allowed us to create a three-dimensional model of the building. We were able to raise the roof in the model and look at all of the other issues we needed to deal with to make the addition structurally sound.” In addition to raising the roof, the columns needed to be extended and the old lateral system had to be replaced. “We also had to design temporary bracing so that we could disconnect the permanent lateral system while putting in the new one,” says Berry. Rooflifters, a company based out of Miami and Toronto, came in to raise the roof, and the project was completed in roughly twelve hours. “It all went very smoothly,” says Berry. “The work was done when the mall was closed and was all accomplished from rewww.akbizmag.com

moval of the lateral bracing, lifting of the roof in several stages, and installation of the temporary lateral bracing prior to the opening of the mall on Monday.” “It was really slick,” adds Ashlock, who goes on to say the mall only had a three-week window in which Rooflifters could work on the project. In addition to BBFM, six other Alaska businesses were involved in the renovation project, including architectural firm WB Architecture; general contractor MCN Construction; steel fabricators Allied Steel Construction; Independent Steel Erectors; RSA Engineering; and Meyer Engineering. Before raising the roof could be scheduled, other demolition needed to be done, including removing the escalator and original stairs. Renovations included putting in new stairs, floors, walls, and elevators, as well as overhauling the mechanical and electrical systems. Numerous other improvements

“It was more than just gutting the space; we actually had to rearrange space within Dimond Center so that it would work for the tenants and the city.”

—Mark Nystuen, President MCN Construction, Inc.

were also taking place at the same time, including the creation of a north entrance in the shopping center to provide direct outside access to Dave & Buster’s and renovating the south entrance. “It was more than just gutting the space; we actually had to rearrange space within March 2018 | Alaska Business

BUILDING ALASKA SPECIAL SECTION | DAVE & BUSTER’S

A rendering of the north entrance to Dave & Buster’s, the first to be built in Alaska.

BUILDING ALASKA SPECIAL SECTION | DAVE & BUSTER’S

Dimond Center so that it would work for the tenants and the city,” says Mark Nystuen, president of MCN Construction. The general contractor was involved in both phases of the project, working first on core and shell improvements for Dimond Center and then on tenant improvements with the Dave & Buster’s team. According to Nystuen, roughly thirty to sixty people were working onsite on any given day, finding solutions to the challenge presented by the logistics of trying to demolish and build sections of a building in a working mall. “There were times when we had to start and stop because it was too noisy, but I have to say that both Dimond Center and Dave & Buster’s were really good to work with—they were very accommodating,” says Nystuen. “It was a real team effort to make this project happen.” “We’ve made a lot of improvements, including cleaning up the design and improving traffic flow,” says Ashlock. “We’re developing the mall in a larger context, adding additional square feet and re-tiling and relighting the common areas. Our goal is to provide a more attractive destination for customers where they want to come and have a nice dinner, glass of wine, maybe see a movie or go for yogurt; we want to lengthen their stays as well as increase the number of visits a year.” According to Ashlock, the improvements totaled about $20 million, with both Dimond Center and Dave & Buster’s paying roughly equal amounts.

Why Anchorage? Why Now? Despite the many claims that “malls are dead,” Ashlock takes a very different view. “We had 12 million visits last year, making us the highest-traffic facility in Alaska,” he notes. “Alaska can be cold and dark, and people want to find a way to be entertained, which is why the idea of experiential retail—having hands-on experiences like visiting a restaurant or a theater— is key to a successful shopping center.” According to the US Census Bureau, Anchorage ranked second—behind New York and ahead of San Francisco—for money spent on food. “Half of the Anchorage population lives in south Anchorage where there are hardly any restaurants,” says Ashlock. “We’re looking at populations with average household incomes of $120,000, and they’re looking for somewhere to come to eat and be entertained.” In addition to food and games, one added attraction of Dave & Buster’s is its ability to offer private dining options, something that is sorely lacking in the area. “Now places like Alyeska and Providence Hospital will be able to have somewhere to hold employee appreciation nights or team building activities,” says Ashlock. “The Boardroom, which is located off of the restaurant, will have a PA system, TVs, and more so that pharmaceutical companies, for example, can hold product launches. It’s a really cool concept that translates to a lot of different audiences.” “Customers will really appreciate the fact that we have roughly 50,000 square feet of the latest and greatest technology,” says Adams of

the center’s attractions. “We’ll have a beautiful dining room, sports lounge with HDTVs every direction you look, and hundreds of the latest arcade games for both kids and adults.” Not only will Dave & Buster’s provide fun for the whole family, it will create jobs as well, with the company expecting to hire approximately 250 people before opening day. “It takes a lot of happy hands to keep a building that size running,” says Adams, who suggests that job-seekers visit the company’s online site to apply. “We know that we’re new to people here and new to Alaska, so the site helps clarify the positions that people are applying for.” Adams says that they are currently cycling through applications and will set up interviews in mid-March at a hiring site in the Crowne Plaza in midtown Anchorage. They will also have a store for hiring in the mall. As things continue to come together, an official opening day will be set, which is expected to occur this month. The company will also probably hold a couple of soft openings to make sure that everything is running as expected. “As soon as all of the construction is done and we get the go-ahead, we’ll roll out our protocol,” says Adams. “We are really excited to be bringing this level of fun and entertainment to Anchorage.” R Vanessa Orr is a freelance writer and former editor of the Capital City Weekly in Juneau.

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Alaska Business 2018 Spring Construction Round-Up New, ongoing, and planned projects statewide By Kathryn Mackenzie

nfrastructure improvements and everevolving design innovations keep Alaskaâ&#x20AC;&#x2122;s engineers, architects, contractors, and sub-contractors busy year-round. The stateâ&#x20AC;&#x2122;s climate, unique road systems, and resource development industries call for nearly-constant upkeep meaning there are always renovations, upgrades, and new builds happening statewide. The numerous projects (planned, in progress, or recently completed) in Alaska are presented in this Alaska Business Spring Construction Round-Up. The projects, submitted to Alaska Business by contractors, engineers, architects, and designers include infrastructure upgrades, housing developments, municipal improvements, and much more.

Cornerstone General Contractors West High/Romig Middle School IMC Wing Renovation

Image courtesy of Roger Hickel Contracting

SPECIAL SECTION

Building Alaska

Image courtesy of Cornerstone General Contractors

Siding is installed at the West High/Romig Middle School IMC Wing Renovation.

The West High/Romig Middle School IMC Wing Renovation project was undertaken in response to a seismic event a few years back that revealed the need for structural upgrades at the shared library of West High School and Romig Middle School. The project consists of selective demolition throughout the structure to allow for the installation of additional foundation and footings, as well as additional steel bracing. The existing counseling center had to be relocated within the administrative area over the summer so school operations would not be disrupted. Temporary libraries were also constructed in both schools. As a result of the construction, the floor plan was altered to add additional Americans with Disabilities Act accessibility, 60

Rebar is set at the City of Palmer wastewater treatment facility.

and the space was reconfigured to add learning areas. New mechanical and electrical upgrades were added to reduce maintenance and operational costs. The total project footprint encompasses approximately 25,000 square feet. The project adds an additional 2,500 square feet of space and also included significant abatement of hazardous materials, strengthening of the roof diaphragm, a new membrane roofing system, and a new exterior envelope for improved energy efficiency. The project commenced in May 2017

and is scheduled for completion this spring. Subcontractors and suppliers include JR Heritage; Alaska Abatement Corporation; Wired AK; Circle Plumbing and Heating; Alaska Sheet Metal; Siemens; Spenard Builders Supply, Alaska Specialized Constructors; Door Systems of Alaska, and many others.

Roger Hickel Contracting City of Palmer: Waste Water Treatment Facility Improvements Meanwhile in Palmer, Roger Hickel is work-

Alaska Business | March 2018 www.akbizmag.com

BUILDING ALASKA SPECIAL SECTION | CONSTRUCTION ROUND-UP

Image courtesy of Roger Hickel Contracting

A Roger Hickel Contracting crew works on the new control building at the wastewater treatment facility in Palmer.

ing on Waste Water Treatment Facility improvements totaling $9,514,000. The project began in June 2017 and is scheduled for completion in November of this year. Improvements include the addition of a twostory 6,000-square-foot control building and a new Moving Bed Bioreactor System. Involved parties include the project’s owner, which is the City of Palmer; the architect/engineer HDR; general contractor Roger Hickel Contracting; electrical sub Quality Electric; TEC PRO; and mechanical work by Superior Plumbing & Heating.

Image courtesy of Roger Hickel Contracting

Eagle River Waste Water Treatment Facility Rehabilitation Phase 2

The AWWU Eagle River wastewater treatment facility awaits the installation of additional siding and other finishing work.

In the same region, Roger Hickel is the general contractor for the Municipality of Anchorage—Anchorage Water and Wastewater Facility (AWWU) Eagle River Waste Water Treatment Facility Rehabilitation Phase 2 in Eagle River. The project cost is $12,096,919 with a start date of June 2017 and scheduled end date of November 2018. Work includes modification and upgrades to the treatment facility. Involved parties include owner AWWU; architect/engineer Quincy Engineering; electrical subcontractor www.akbizmag.com

March 2018 | Alaska Business

Ship Creek Water Treatment Facility Rehabilitation Phase 2

Image courtesy of Roger Hickel Contracting

The Ship Creek water treatment facility is being rehabilitated; the project started in 2017 and will be completed in 2019.

In Anchorage, Roger Hickel Contracting is the general contractor for the Municipality of Anchorage—AWWU Ship Creek Water Treatment Facility Rehabilitation Phase 2. The project cost is $8,970,369 with a start date of July 2017 and completion set for January 2019. The project includes modification and upgrades to the 38,000-square-foot Ship Creek Treatment Facility. The project owner is AWWU, the architect/engineer is CDM Smith; electrical sub is Quality Electric; and mechanical work is being done by Norcoast.

West High School Gym & Auditorium HVAC Upgrades/Chugiak High School HVAC Upgrades Area B Also in Anchorage, Roger Hickel is the general contractor making upgrades to the West High School Gym & Auditorium HVAC systems. The project cost is $3,548,050 with a start date of May of this year and scheduled completion date of September 2019. The project owner is the Anchorage School District and the architect and engineer are McCool Carlson Green and PDC Engineering. Chugiak High School in Chugiak is undergoing HVAC renovations to Area B. The project is set to start in May and scheduled for completion in August at a cost of $1,031,531. The project owner is Anchorage School District, the architect and engineer are Bezek Durst Seiser and MBA Consulting Engineers, the general contractor is Roger Hickel Contracting. Bicycle Plan Implementation: Eagle River and Peterkin Avenue Meyer to N. Bunn The company is also installing bike lane signing, striping, and upgrades to sidewalks and curbs in Eagle River. The State of Alaska— DOT&PF project, AMATS: Bicycle Plan Implementation starts in June and is set to be complete in July. It runs from Peterkin Avenue Meyer to North Bunn at a cost of $745,846. Project owner is the State of Alaska DOT&PF. The engineer is CRW Engineering Group; the general contractor is Roger Hickel Contracting; and the pavement markings and rumble strip sub is Pacific Asphalt.

“Commitment to Quality Through Pride of Employee Ownership.” The Superior Group is committed to becoming the best mechanical and electrical contractor in Alaska... to do this we pledge to meet and exceed our customers’ requirements every time by providing services of the highest quality.

Superior Plumbing and Heating 349.6572 Alaska Sheet Metal 279.6009 Haakenson Electric 346.3043 Superior Mechanical Service 349.6550 Support Services of Alaska 278.8212 ©Ken Graham Photography

907.344.5011

www.superiorpnh.com • P.O. Box 230387 • Anchorage, Alaska 99523 62

RH Development Sunset Meadows

Sunset Meadows is a residential development in Juneau comprised of thirty-three housing units.

Images courtesy of RH Development

BUILDING ALASKA SPECIAL SECTION | CONSTRUCTION ROUND-UP

Quality Electric; and mechanical subcontractor Superior Plumbing & Heating.

The units at Sunset Meadows will have 1,450 square feet of space and feature three bedrooms and 2.5 baths, as well as many energy efficient features.

RH Development is developing a neighborhood with thirty-three units called Sunset Meadows in Juneau. The project owner is Harris Homes and the houses, when complete in summer 2019, will be available for purchase starting in the mid-$300,000 range. Sunset Meadows is located within walking distance to Juneau’s Mendenhall Mall Shopping Center, grocery stores, coffee shops, restaurants, and fitness centers. As Juneau’s newest housing development, Sunset Meadows consists of modern homes within the Mendenhall Valley. The current floor plans are 1,450 square feet with three bedrooms and two-and-a-half baths. Each home features energy construction throughout with Daiken heat pumps, LED lighting, and a 5-Star Plus energy rating.

Stantec North Pole Water System Expansion Stantec is the engineer for the $52 million North Pole Water System Expansion in North Pole. The project commenced in February and is set to be complete in February 2019. The project will construct 181,000 feet—more than thirty-four miles—of insulated water mains to extend the public water supply to more than 650 properties within and surrounding the city of North Pole. The North Pole Water System Expansion project includes enlargement of the existing water treatment plant, a new 750,000-gallon water reservoir, and a new water system pump house. The project contractor is Exclusive Paving.

Alaska Business | March 2018 www.akbizmag.com

inside of the existing airport snow removal equipment building. The airport also will receive a new segmented circle and lighted wind cone, rotating beacon, tie downs, and fencing. The $6,895,530 million project is owned by DOT&PF and is scheduled for start and completion this year. Knik Construction is the project’s contractor.

Kwethluk K-12 School In Kwethluk, Bethel Services Inc. completed construction on the new two-story K-12 school in January, with classes beginning in the 48,500-square-foot facility the same month. Stantec provided the architectural and engineering design services on the $32.8

Image courtesy of Stantec

An interior shot of the K-12 Kwethluk school, completed in January.

Ted Stevens Anchorage International Airport: Gates B1, B3, and B5 Reconstruction At Ted Stevens Anchorage International Airport, Stantec is the engineer for the reconstruction of Gates B1, B3, and B5. The $6.9 million Stantec-designed project includes 14,000 square yards of concrete apron and 4,000 square yards of asphalt replacement as well as utility upgrades at each gate. Concourse B serves a variety of air carriers and the gates are heavily utilized during peak season (mid-May through September). Only one gate can be closed at a time, and all gates must be open during peak season. Additionally, only one gate can be constructed each year, and construction must start in March— prior to the normal pavement-construction season—and be completed by early summer. Gate B1 was completed in 2017, and construction starts on Gate B3 this month. The project began in 2017 and set to be wrapped up in 2019. Its owner is DOT&PF and the contractor is Roger Hickel Contracting. Bethel Airport Improvements In more airport news, the Stantec aviation design team provided design for Bethel Airport improvements that will replace two aprons and adjacent taxi lanes and taxiways, expand a separate apron, improve perimeter security fencing, access controls to various gates, and install electric outlets at tie-downs at the main Southwest Alaska air hub. Construction field work is scheduled to begin in May. The $6.9 million project encompasses 764,200 square feet of airfield pavement. The project owner is DOT&PF and the contractor is Knik Construction. Gambell Airport Pavement Rehabilitation and Lighting Replacement In Gambell, Stantec is the engineer for the Gambell Airport Pavement Rehabilitation and Lighting Replacement. The Stantecdesigned project will renovate the existing runway, taxiway, and apron and replace with four inches of hot mix asphalt for the sole transportation access for the remote village of Gambell on St. Lawrence Island. The airport lighting systems will be replaced with the new lighting controls that will be moved www.akbizmag.com

March 2018 | Alaska Business

BUILDING ALASKA SPECIAL SECTION | CONSTRUCTION ROUND-UP

Aniak Airport Runway Shift Also on Stantec’s project roster is the $39.9 million Aniak Airport Runway Shift. This Stantec-designed project will shift the entire 6,000-foot-long runway 260 feet laterally to comply with FAA safety requirements. Construction begins this spring, is set to be complete in 2020, and will include a new runway and new runway safety area; new taxiways; apron reconstruction; removal of obstacles and obstructions, including multiple buildings; relocation of 1,900 feet of road; a new maintenance building; design support of FAA NAVAIDS; drainage improvements; utility relocates; security fencing; and contaminated soil remediation. The project owner is DOT&PF and the contractor is Knik Construction.

Image courtesy of Stantec

The exterior of the K-12 Kwethluk replacement school, a $38.2 million project that sits on driven piles eleven feet above the ground.

million replacement school, which sits on driven piles that put the first floor nearly eleven feet above ground and provide separation from potential flooding in the community. Once breakup occurs, final site grading and completion of the outdoor play decks will take place. The project owner for the Kwethluk school is Lower Kuskokwim School District and the contractor was Bethel Services. The project commenced in 2015 and was complete in 2018.

Nightmute K-12 Renovation/Addition UIC Construction LLC continues construction on the 30,000-square-foot Nightmute K-12 school, providing building enclosure and roofing installation. The school was designed by the multi-discipline team from Stantec and is expected to be complete in spring 2019. The $30 million renovation to the school in Nightmute is owned by the Lower Kuskokwim School District, the ar-

Image courtesy of Stantec

Exterior shot of the K-12 school in Nightmute, for which construction is slated for completion in spring 2019.

chitect/engineer is Stantec, and the contractor is UIC Construction LLC.

Glacier Highway Reconstruction—Fritz Cove Road to Seaview Avenue, Juneau This Stantec-designed project reconstructs about one mile of Glacier Highway from the Fritz Cove Road intersection to the intersection of Seaview Avenue in Auke Bay. Work on the $13.8 million project is set to be complete in August and will improve sightlines and reduce conflicting turning patterns, while also improving the roadway’s shoulders and pedestrian crossings near Auke Bay Elementary School. The project includes roadway subbase improvement, widening, curve realignment, and surfacing. Pedestrian facilities, retaining walls, lighting, drainage, and guardrail are all part of the design. Construction progress in 2017 included curve realignment, subbase replacement, construction of multiple retain-

100th Avenue Extension, Phase IIB— Minnesota Drive to C Street The second phase of the 100th Avenue connection between Minnesota Drive and C Street, designed and engineered by Stantec, resumes in May. The project, set for completion in August, includes two roundabouts at the Minnesota Drive interchange (constructed last summer) and construction of the roadway between Minnesota Drive and C Street. This minor arterial roadway will have three lanes, 5-foot shoulders, separated multiuse pathways on both sides of the road, and continuous LED lighting over its length (about three-quarters of a mile). The $5 million to $10 million project is owned by the Municipality of Anchorage and the contractor is Mass Excavation. Turnagain Marine Construction City of Unalaska UMC Dock Position III & IV Replacement Work on the Unalaska UMC Dock Position III and IV Replacement continues in Dutch Harbor. The project includes the installation of twenty-two open cell sheet pile structures, including 72,000 cubic yards of fill; an eleven panel fender system; water, sewer, storm, and fuel systems; 715 feet of added container

ANCHORA G

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BUILDING ALASKA SPECIAL SECTION | CONSTRUCTION ROUND-UP

ing walls, a new waterline, and utility relocations. A second phase, from the Back Loop Road roundabout to Seaview Avenue, will begin this spring. The project owner is Alaska DOT&PF; the contractor is Secon; and the engineer, Stantec.

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crane rail; and 105,000 square feet of concrete pavers. To date work has been completed with little to no interruption of day-today port operations. Turnagain is currently finishing up Season 1, after meeting all of its February 1, 2018 milestones. Turnagain will begin Season 2 work this month. The $35 million project was awarded to Turnagain in March 2017, construction be-

gan in June 2017, and the anticipated finish date is October of this year.

Gary Paxton Industrial Park Multi‐ Purpose Dock The Gary Paxton Industrial Park Facility (GPIP) was long-awaited by the City and Borough of Sitka. This design‐build project presented unique challenges in order to provide

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BUILDING ALASKA SPECIAL SECTION | CONSTRUCTION ROUND-UP

Aerial photo taken by drone of the City of Unalaska UMC Dock Position III and IV Replacement project with a projected completion date in October.

the owner with all necessary design criteria, Turnagain says. Two floating dock options were analyzed with a final decision to provide the city with a 19,000-square-foot retrofitted ABS Class barge as the basis of the design. The barge was dry‐docked and inspected to achieve a fifty‐year design life with minimal maintenance. It was also retrofitted with a new coating system, full anode replacement, and a high capacity wear deck with the ability to handle a 260 kip axel load. Turnagain designed and constructed large pile dolphins caps, reducing the amount of falsework. Onsite construction of the GPIP Facility included the installation of two 48‐inch diameter, 160 feet in length plumb pile with rock anchors and four 30‐inch diameter, 140 feet in length batter pile. Batter pile were rock anchored into bedrock. Each pile was installed using a vibratory hammer in combination with a D-46 impact hammer. A 19-foot-wide by 82-foot transfer span weighing 110 tons, cast‐in‐place concrete abutment, shore side concrete approach apron, a dry fire line, and an electrical distribution and lighting system were installed to complete the dock facility. The $6.9 million project was completed in a highly sensitive environment with strict environmental oversight between September and December 2017. R

SPECIAL SECTION

Building Alaska The Alaska Business

2018 Construction Directory

COMMERCIAL, INDUSTRIAL SUPPLIERS COMPANY TOP EXECUTIVE

Aaron Plumbing & Heating Company 2143 Standard Ave. Fairbanks, AK 99701 Phone: 907-452-3463 Fax: 907-456-1315 ABC, Inc. 401 Driveway St. Fairbanks, AK 99701 Phone: 907-457-2221 Fax: 907-457-5045 Ace Supply, Inc. 2425 E. Fifth Ave. Anchorage, AK 99501 Phone: 907-277-4113 Fax: 907-277-4112

YEAR FOUNDED / ESTABLISHED IN ALASKA

WORLDWIDE / ALASKA EMPLOYEES

Tom Fisher, Pres./GM tomfisher@aaronak.com aaronak.com Susan Ellison, Pres. info@akabc.com akabc.com Erick Smith, Pres. Erick@akpetro.com

BUSINESS DESCRIPTION

1982 1982

14 14

Mechanical Contractor providing Mechanical Systems for the Vertical Construction Industry within Alaska. Also specialize in the provision of Utilities, fuel systems and rural Alaska Scope and DoD projects. Commercial and industrial, design build and bid build projects.

1995 1995

15 15

General contractor specializing in energy efficient remodeling and product sales. Seamless siding and gutters, windows, doors, all remodeling. Material Sales include: Commercial doors, windows, store front, metal siding, metal flashing, door hardware, window wells.

1962 1962

4 4

Petroleum handling equipment for Commercial, Industrial and Aviation Industries. Pumps, Meters, Reels, Filters, Tank Monitors as well as Fuel Testing Equipment.

Alaska Business | March 2018 www.akbizmag.com

YEAR FOUNDED / ESTABLISHED IN ALASKA

WORLDWIDE / ALASKA EMPLOYEES

BUSINESS DESCRIPTION

Rick Lafferty, VP/Region Mgr. rlafferty@wsminc.biz airsidesolutionsinc.com Dave Hanna, Mng. Member alaskaconcretecasting@gci.net

1978 1988

9 0

AirSide Solutions is a full line provider of Airfield and Heliport Lighted Navigation systems, Technical Services, and logistics support to the aviation market in Alaska.

2004 2004

4 4

Precast concrete supplier, furnishing utility, traffic and retaining wall products as well as custom casting, building panels and foundation systems. Rebar fabrication and supply house stocking 20’ and 40’ bar. Detailing, bending and cage tying services. Custom rubber form liner fabrication.

1994 1994

30 30

Design, sales and construction of fabric covered structures and pre-engineered metal buildings.

2003 2003

5 5

1981 1981

121 62

1978 1978

30 30

We are the number one supplier of FRC Apparel, to include our very own Korbana Protective Apparel, in Alaska and North Dakota, and around the world. With a highly trained sales staff we make customer service and quality control our priorities.

1982 1982

22 22

Heating, ventilation, air conditioning, plumbing, sheet metal, appliance, and refrigeration contracting & service company.

Meini Huser, Pres. sales@alaskadreamsinc.com alaskadreamsinc.com Luis Suarez, Owner/Partner apekich@alaska.net akclosets.com Janeece Higgins, CEO info@alaskarubber.com alaskarubber.com Clif Burnette, Pres. info@alaskatextiles.com alaskatextiles.com; korbana.com David Bridges, Pres./GM dbridges@altrolinc.com altrolinc.com Chris Taylor, Pres. anchsand@anchsand.com anchsand.com Tim Craig anchoragehardware@truevalue.net truevalue.com Jennifer Mattingly, AHC/Pres. Jennifer@archialaska.com

COMPANIES

1938 1938

As space transformation specialists we provide residential and commercial custom storage solutions ranging from closets to wine rooms to garages. We specialize in retail displays, medical and business offices. We also sell Swisstrax modular flooring system useful in unlimited applications. Alaska’s largest supplier of hydraulic & industrial hose assemblies & associated products; specialize in fabrication/testing of wire rope, chain & synthetic slings for overhead lifting & rigging; supply & service fueling, lubrication & pressure washing equipment, hydraulic pumps, motors, cylinders & valves.

Anchorage Sand & Gravel has been supplying building materials to Alaska since 1938. We 100+ specialize in building materials relating to concrete and aggregates, including landscaping 100 products, rebar, block, and precast. Our showroom off of Klatt Road in south Anchorage is open to the public.

1949 1949

20 20

Traditional retail hardware store with core departments: tools, hardware, plumbing, electrical, paint and seasonal products.

1977 1977

8 8

Supplier of Division 8 & 10-commercial doors, frames, hardware, toilet partitions, and toilet accessories.

BUILDING ALASKA FOR MORE THAN MARINE LLC

ENERGY SERVICES LLC A CIRI COMPANY

A CIRI COMPANY

s r a e y 7 3

BUILDING ALASKA SPECIAL SECTION | CONSTRUCTION DIRECTORY

COMPANY TOP EXECUTIVE

AirSide Solutions, Inc. 2222 W. Valley Hwy. N., Suite 140 Auburn, WA 98001 Phone: 253-833-6434 Fax: 253-833-6825 Alaska Concrete Casting 5761 Concrete Way Juneau, AK 99801 Phone: 907-780-4225 Fax: 907-780-4230 Alaska Dreams, Inc. 2081 Van Horn Rd., #2 Fairbanks, AK 99701 Phone: 907-455-7712 Fax: 907-455-7713 Alaska Premier Closets 507 E. Ship Creek Ave. Anchorage, AK 99501 Phone: 907-278-2288 Fax: 907-278-2330 Alaska Rubber & Rigging Supply 5811 Old Seward Hwy. Anchorage, AK 99518-1479 Phone: 907-562-2200 Fax: 907-561-7600 Alaska Textiles 620 W. Fireweed Ln. Anchorage, AK 99503 Phone: 907-265-4880 Fax: 907-265-4850 Altrol Heating, Cooling & Plumbing 2295 Van Horn Rd. Fairbanks, AK 99701 Phone: 907-452-8680 Fax: 907-452-6778 Anchorage Sand & Gravel 1040 O’Malley Rd. Anchorage, AK 99515 Phone: 907-349-3333 Fax: 907-344-2844 Anchorage True Value Hardware 9001 Jewel Lake Rd., #5 Anchorage, AK 99502 Phone: 907-248-9211 Fax: 907-248-6976 Architectural Supply Co., Inc. 3699 Springer St. Anchorage, AK 99503 Phone: 907-561-1919 Fax: 907-562-5540

ENER

Experts in Resource Development and Heavy Civil Construction

CONTRUCTION, INC

Cruz Construction | Specialized Transport & Rigging Alaska Interstate Construction | Cruz Energy Services | Cruz Marine A CIRI Company

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Original March 2018 | Alaska Business

BUILDING ALASKA SPECIAL SECTION | CONSTRUCTION DIRECTORY

COMPANY TOP EXECUTIVE

Arctic Solar Ventures 745 W. Fourth Ave., Suite 101 Anchorage, AK 99501 Phone: 907-268-4188 ATCO Structures & Logistics Ltd. 425 G St. Anchorage, AK 99501 Phone: 907-677-6983 Fax: 907-677-6984 Bering Shai Rock & Gravel PO Box 196 Unalaska, AK 99685 Phone: 907-581-1409 Fax: 907-581-3409 Brown’s Electric 1415 Spar Ave. Anchorage, AK 99501 Phone: 907-272-2259 Fax: 907-279-7495 C & R Pipe and Steel, Inc. 401 E. Van Horn Rd. Fairbanks, AK 99701 Phone: 907-456-8386 Cabinet Fever, Inc. 8220 Petersburg St., Suite 1 Anchorage, AK 99507 Phone: 907-349-4871 Fax: 907-349-4891 Carberry Associates PO Box 242563 Anchorage, AK 99524 Phone: 907-227-1598 Fax: 907-345-2497 Central Plumbing & Heating, Inc. 212 E. Int’l Airport Rd. Anchorage, AK 99518 Phone: 907-562-2511 Fax: 907-562-2519 Delta Leasing 8101 Dimond Hook Dr. Anchorage, AK 99507 Phone: 907-771-1300 Fax: 907-771-1380 Door Systems of Alaska, Inc. 18727 Old Glenn Hwy. Chugiak, AK 99567 Phone: 907-688-3367 Fax: 907-688-3378 DXP| Alaska Pump & Supply 8401 Brayton Dr. Anchorage, AK 99507 Phone: 907-563-3424 Fax: 907-562-5449 Equipment Source, Inc. 1919 Van Horn Rd. Fairbanks, AK 99701 Phone: 888-868-9049 Fax: 907-458-7180 Giant Don’s Flooring America 7725 Old Seward Hwy. Anchorage, AK 99518 Phone: 907-522-5775 Fax: 907-522-7425 Graybar 5501 A St. Anchorage, AK 99518 Phone: 907-562-2214 Haltness Equipment 205 Meals Ave. Valdez, AK 99686 Phone: 907-835-5418 Fax: 907-835-3694 Hayden Electric Motors, Inc. 4191 Old Seward Hwy. Anchorage, AK 99503 Phone: 907-561-1073 Fax: 907-561-5867 Juneau Electric 2770 Sherwood Ln., #J Juneau, AK 99801 Phone: 907-789-0811 Fax: 907-789-0457 K&H Civil Constructors PO Box 877037 Wasilla, AK 99687 Phone: 907-373-4133 Fax: 907-373-3136 Lifewater Engineering Company 1963 Donald Ave. Fairbanks, AK 99701 Phone: 907-458-7024 Fax: 907-458-7025 Long Building Technologies, Inc. 5660 B St. Anchorage, AK 99518 Phone: 907-561-3044 Fax: 907-561-4225 Magic Metals, Inc. 530 E. Steel Lp. Palmer, AK 99645 Phone: 907-746-7800 Fax: 907-746-7802

YEAR FOUNDED / ESTABLISHED IN ALASKA

Stephen Trimble, Founder/CEO company@arcticsolarventures.com arcticsolarventures.com Steve Lockwood, Pres. atco@atcosl.com atcosl.com Diane Shaishnikoff, Owner/Mgr. Dianeshai@gmail.com beringshairock.com Chip Brown, Pres. chipb@brownselectric.com Brownselectric.com Dennis Wilfer, Pres. sales@crpipe.net crpipenadsteel.com Kurt Echols, Pres. kurt@cabinetfever.net cabinetfever.net Tom Carberry, Owner carberryassociates@acsalaska.net Jeffery Cooper, Pres. info@thewarmguys.com thewarmguys.com Rudi von Imhof, Pres. info@deltaleasing.com deltaleasing.com Beth Bergh, Owner beth@doorsystemsak.com doorsystemsak.com Robert Cambron, GM sales@alaskapump.com alaskapump.com; dxpe.com Nick Ferree, GM NickF@equipsrc.com equipmentsourceinc.com Dave Heafer, Owner facebook.com/Giantdons/ giantdons.com Jud Napier, Branch Mgr. graybar.com

WORLDWIDE / ALASKA EMPLOYEES

BUSINESS DESCRIPTION

Arctic Solar Ventures is a fully integrated design/ build solar company located in Anchor2015 6 age, Alaska. We serve residential and commercial markets with grid-direct solar PV and 2015 6 solar thermal systems. We are committed to the best quality, service, and safety in the industry. ATCO Structures & Logistics offers complete infrastructure solutions to customers 1947 1,000 worldwide, including remote work force housing, portable offices and trailers, innovative 2009 2 modular facilities, construction, site support services, operations support, catering and noise reduction technologies. Native owned and operated business specializing in the production and placement of 2004 17 high-quality rock materials, as well as providing heavy equipment rentals and services for 2004 17 any type of small or large construction project, including airports, boat harbors and road building projects. 1959 1959

50 50

1992 1992

50 50

1999 1999

5 5

1994 1994

1 1

For all electrical and lighting needs. We offer new and used pipe (1/2”-60”), structural pipe, pilings, well casing pipe, bollards, steel posts, culverts and more! C & R Pipe and Steel in Fairbanks, is the largest pipe distributor in Alaska. When you choose us, you gain access to over 7,500 tons of steel pipe in our inventory. Commercial & residential custom cabinet shop producing high-end custom kitchen cabinets, counter tops & installation as well as custom furniture, entertainment centers, reception desks, medical, dental & retail casework, store fixtures. Also carry two lines of manufactured residential cabinets. Manufacturer’s Representative for specialty commercial building products.

Central Plumbing & Heating is an Alaskan family owned and operated company since 1959. Visit our Kitchen & Bath Showroom, our Fireplace & Heating Showroom, our DIY Parts Counter, or schedule an appointment with our Service Department. We can help you with, “Everything AND the kitchen sink.” Specialized leasing of fleet trucks, SUVs, vans, & shuttle buses, as well as construction 2002 40 & mining equipment, oil & gas equipment. GM, Dodge & International warranty repair 2002 40 center. Alaskan-owned. Deadline driven. Results oriented. Anchorage/Kenai/Prudhoe Bay/ Fairbanks/Remote Alaska. Commercial/industrial/architectural doors. Modernfold Flat wall partitions & Accordion 2000 13 Partitions, Skyfold vertical partitions. Rolling doors, grills, shutters. Fire-rated rolling doors. 2000 13 McGuire dock equipment. EPD/Renlita Hangar doors & Blast-resistant doors. MAXDoor Fabric Hangar Doors. Serving industrial, municipal and commercial customers, DXP | Alaska Pump & Supply is 1908 2,400 at the leading edge of technology providing the best rotating equipment, bearing and PT, 1978 20 MROP, safety products, expert service and engineered solutions from skids to complete modules. Field services are available. ESI designs, develops, & builds quality, innovative worksite products for the oil, mining, 2000 45 construction, & agriculture industries. All of our products are BUILT ARCTIC TOUGH, built 2000 30 to last, & tested in challenging environments. We also specialize in Kubota Tractors. SalesService-Parts-Rentals. 1959 1959

28 28

1975 1975

18 18

Carpet, Hardwood, Luxury Vinyl, Laminate, Tile, Cork, Window Fashions, Cabinets, Countertops. Giant Don’s Flooring America has been owned and operated in Alaska by Alaskans for more than 40 years. We have Alaskans needs in our hearts!

Graybar, a Fortune 500 corporation and one of the largest employee-owned companies 1928 8,000+ in North America, is a leader in the distribution of high quality electrical, communications 1973 36 and data networking products, and specializes in related supply chain management and logistics services.

Erik Haltness, Mgr. sales@haltness.com haltness.com Roger Saunders, VP/GM ask@hayden-ak.com hayden-ak.com William Byouer, Owner/Treasurer billb@juneauelectric.com juneauelectric.com Matthew Ketchum, Owner/Mng. Member

1987 1987

10 10

Equipment Rentals and Sales.

1959 1959

10 10

Sales, service and rewinding of electric motors and generators and associated equipment. On-site service calls. Re-certification of explosion-proof motors.

1938 1965

8 8

We are a full service electrical contractor, residential/commercial, fire alarms, data, phone.

2016 2016

15 15

Public works civil General Contractor (Mat-Su Borough) and construction aggregate supplier within the city limits of Wasilla (commercial and retail sales).

1998 1998

10 10

Design and manufacture of: Sewage treatment plants for man camps, homes, and lodges in the most extreme environments and remote places. We also Custom Fabricate Plastic tanks and products for many purposes. For the Rough Duty Boats, visit Class5Boatworks. com.

1965 2014

380 35

Building Automation & System Integration, Equipment Sales, Mechanical Solutions, Security Solutions, LONG PartsPros.

1981 1981

9 9

matt@khcivil.com Bob Tsigonis, Pres., PE Bob@LifewaterEngineering.com LifewaterEngineering.com Brian Miller, VP alaskadispatch@LONG.com LONG.com Joan Tolstrup, Pres. magicmetals@mtaonline.net magicmetalsinc.com

Magic Metals, Inc. manufactures a variety of roofing and architectural metal products as well as custom trim and accessories. We are open to retail and wholesale customers and offer great customer service and quick turnaround. Perforation on panels and trim is available.

Alaska Business | March 2018 www.akbizmag.com

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YEAR FOUNDED / ESTABLISHED IN ALASKA

WORLDWIDE / ALASKA EMPLOYEES

Stacy Stoltenow, VP office@mthousing.net mthousing.net Matt Bailey, Anch. Branch Mgr. MiMarketing@MotionIndustries.com MotionIndustries.com Matt Bailey, Kenai Branch Mgr. MiMarketing@MotionIndustries.com MotionIndustries.com Nick Morgan, Fbx. Branch Mgr. MiMarketing@MotionIndustries.com MotionIndustries.com John Harnish, Pres./CEO jstubben@ncmachinery.com ncmachinery.com Jason Knoles, Pres. sales@northlandwood.com northlandwood.com James Enochs, Anch. Mgr. northlandwood@acsalaska.net northlandwood.com Scott English, AK Div. Mgr. senglish@pspipe.com pugetpipe.com John Lake, CEO rharris@rainforrent.com rainforrent.com Doug Scherzer, GM doug@riverswoodproducts.com riverswoodproducts.com

1995 2005

10-50 1-5

1970 6,500+ 2010 4

1926 1926

1965 1965

BUSINESS DESCRIPTION

Mining/logging camps, construction camps, construction offices, jobsite engineering units, industrial facilities, laboratories, field offices, dormitory buildings, office buildings, urban housing, shower and locker room facilities, medical buildings, exercise buildings, classrooms, survival units. A leading distributor of industrial maintenance, repair and operations (MRO) replacement parts (over 7 million parts), including bearings, power transmission, hydraulic/pneumatic components, linear, hydraulic/industrial hose, industrial & safety supplies, process pumps, seals & material handling. A leading distributor of industrial maintenance, repair and operation (MRO) replacement parts (over 7 million parts), including bearings, power transmission, hydraulic/pneumatic components, linear, hydraulic/industrial hose, industrial and safety supplies, seals, process pumps & material handling. A leading distributor of industrial maintenance, repair and operations (MRO) replacement parts (over 7 million parts), including bearings, power transmission, hydraulic/pneumatic components, linear, hydraulic/industrial hose, industrial & safety supplies, process pumps, seals & material handling.

Cat® machine sales, parts, service, and rental. Cat® engines for marine, power genera1,025 tion, truck, petroleum, and industrial applications. Sales and rental of Cat® and other 195 preferred brands of rental equipment and construction supplies. 35 35

Building supplier. Produces WWPA-graded surfaced lumber, rough lumber, large timbers and house logs. Stocks materials to fulfill all building needs.

Building supplier. Produce WWPA-graded surfaced lumber, rough lumber, large timber 1965 30-40 and house logs. Stocks materials to fulfill all building needs from the foundation piers to 1965 30-40 the roof screws. 1917 1984

1934 2002

1984 1984

150 30

Alaska’s largest supplier of pipe, valves and fittings to Alaska oil and gas markets. Two locations in Alaska: Anchorage and Kenai.

1,600 Pump, Tank, Pipe, Filtration Solutions for Environmental, Construction and Oilfield Opera4 tions.

5 5

Specialty siding, decking, and railing lumberyard. We supply contractors with stainless steel braided wire rope that we make in our facility that puts Alaskans to work. We sell Alaska Cedar and Western Red Cedar for siding. We have the largest stock in Alaska for Vinyl siding and composite decking.

March 2018 | Alaska Business

BUILDING ALASKA SPECIAL SECTION | CONSTRUCTION DIRECTORY

COMPANY TOP EXECUTIVE

Modular Transportable Housing 3116 Commercial Dr. Anchorage, AK 99501 Phone: 877-929-9902 Motion Industries, Inc. 611 E. Int. Airport Rd. Anchorage, AK 99518 Phone: 907-563-5565 Fax: 907-563-5536 Motion Industries, Inc. 53341 Sandy Ln., #A Kenai, AK 99611 Phone: 907-283-4452 Fax: 907-283-5230 Motion Industries, Inc. 1895 Van Horn Rd., Unit A Fairbanks, AK 99701 Phone: 907-452-4488 Fax: 907-456-8840 N C Machinery 6450 Arctic Blvd. Anchorage, AK 99518 Phone: 907-786-7500 Fax: 907-786-7580 Northland Wood Products 4000 S. Cushman St. Fairbanks, AK 99701 Phone: 907-452-4000 Fax: 907-452-1391 Northland Wood Products 6841 Brayton Dr. Anchorage, AK 99507 Phone: 907-452-4000 Fax: 907-452-1391 Puget Sound Pipe & Supply Co. 2120 Spar Ave. Anchorage, AK 99501 Phone: 907-277-7473 Fax: 907-277-9656 Rain for Rent 53325 Henley Ave. Kenai, AK 99611 Phone: 907-283-4487 Rivers Wood Products 1780 Richardson Hwy. North Pole, AK 99705 Phone: 907-488-0888 Fax: 907-488-1543

BUILDING ALASKA SPECIAL SECTION | CONSTRUCTION DIRECTORY

COMPANY TOP EXECUTIVE

Sherwin-Williams 35444 Kenai Spur Hwy. Soldotna, AK 99669 Phone: 907-262-4674 Fax: 907-262-4497 Spenard Builders Supply, Inc. 300 E. 54th Ave., Suite 201 Anchorage, AK 99518 Phone: 907-261-9105 Fax: 907-261-9142 Stusser Electric Company 411 E. 54th Ave. Anchorage, AK 99518 Phone: 907-561-1061 Fax: 907-561-0203 Surveyors Exchange Co. 3630 Springer St. Anchorage, AK 99503 Phone: 907-561-6501 Fax: 907-561-6525 Swagelok Alaska 341 E. 56th Ave. Anchorage, AK 99518 Phone: 907-563-5630 Fax: 907-563-4721 The Plans Room 4831Old Seward Hwy., Suite 202 Anchorage, AK 99503 Phone: 907-563-2029 Truckwell of Alaska, Inc. 5801 Silverado Way Anchorage, AK 99519-1659 Phone: 907-349-8845 Fax: 907-344-0644 West-Mark Service Center-Fairbanks 3050 Van Horn Rd. Fairbanks, AK 99709 Phone: 907-451-8265 Fax: 907-451-8273 Yukon Fire Protection Services 5601 Silverado Way Anchorage, AK 99518 Phone: 907-563-3608

YEAR FOUNDED / ESTABLISHED IN ALASKA

WORLDWIDE / ALASKA EMPLOYEES

BUSINESS DESCRIPTION

John Morikis, CEO sw1749@sherwin.com sherwin-williams.com Ed Waite, Sr. VP facebook.com/SpenardBuildersSupply sbsalaska.com David Lockwood, Mgr. dlockwood@stusserak.com

1896 89,000+ Paint and coating supplies. From home to boat, we have it all! 1978 56

1952 14,000 Provides a full line of building materials and home-improvement products to fill the needs 1952 600 of residential DIYers and commercial contractors.

1957 5,000+ Electrical Wholesale products and supplies. 1980 22

David Wilmarth, Owner garza@tse-ak.com satellitephonesak.com Tarek Sheira, Mgr. AK Sales/Ops info@alaska.swagelok.com alaska.swagelok.com mail@theplansroom.com theplansroom.com

1969 1969

15 15

Satellite phone sales and rentals, auto-desk software, surveying instruments, sales, rentals and service.

1965 40,000 Instrumentation and fluid system components. Authorized Swagelok distributor for Alaska. 1965 10

1982 1982

4 4

Alaskaâ&#x20AC;&#x2122;s number one Online Information Center for the Construction Industry.

1989 1989

19 19

Truck equipment and custom fabrication specializing in harsh environments and oil field support.

1967 2009

215 8

Liquid transportation tank trailer repair.

1978 1978

34 34

Fire and gas detection and suppression system design, supply, installation and service. Alaskaâ&#x20AC;&#x2122;s only representative of Detector Electronics. Kidde Fire Systems, Marioff Hi-Fog, Ansul, Tyco Fire Protection Products, CWSI Wireless Fire Alarm, Foam Suppression, Marine Systems, compliance inspections.

Kris Swanson, Owner info@truckwell.com truckwell.com Scott Vincent, CEO wwalker@west-mark.com west-mark.com Matt Atkins, GM/VP matkins@yukonfire.com yukonfire.com

ELECTRICAL CONTRACTORS COMPANY TOP EXECUTIVE

Arctic Energy, Inc. PO Box 220110 Anchorage, AK 99522 Phone: 907-382-7772 Arctic Solar Ventures 745 W. Fourth Ave., Suite 101 Anchorage, AK 99501 Phone: 907-268-4188 Delta Constructors 3000 C St., Suite 202 Anchorage, AK 99503 Phone: 907-771-5800 Fax: 907-771-5911 HotWire 5451 Laona Dr. Anchorage, AK 99518 Phone: 907-792-2400 Fax: 907-278-8769 Juneau Electric 2770 Sherwood Ln., #J Juneau, AK 99801 Phone: 907-789-0811 Fax: 907-789-0457 Little Susitna Construction Co. 821 N St., Suite 207 Anchorage, AK 99501 Phone: 907-274-7571 Fax: 907-277-3300 New Horizons Telecom, Inc. 901 Cope Industrial Way Palmer, AK 99645 Phone: 907-761-6000 Fax: 907-761-6001 Raven Electric, Inc. 8015 Schoon St. Anchorage, AK 99518 Phone: 907-349-9668 Fax: 907-522-3995 Siemens Industry, Inc. 5333 Fairbanks St., Unit B Anchorage, AK 99518 Phone: 907-563-2242 Fax: 907-563-6139 TDX Government Services 3601 C St., Suite 1000 Anchorage, AK 99503 Phone: 907-278-2312 The Superior Group, Inc. PO Box 230387 Anchorage, AK 99523 Phone: 907-344-5011 Fax: 907-344-5094

YEAR FOUNDED / ESTABLISHED IN ALASKA

WORLDWIDE / ALASKA EMPLOYEES

BUSINESS DESCRIPTION

Greg Porter, Pres. gporter@arcticenergyalaska.com arcticenergyalaska.com Stephen Trimble, Founder/CEO company@arcticsolarventures.com arcticsolarventures.com Ed Gohr, CEO info@deltaconstructors.net deltaconstructors.net Gundar Clemeson, GM info@hotwirellc.com hotwirellc.com William Byouer, Owner/Treasurer billb@juneauelectric.com juneauelectric.com Dominic Lee, Owner littlesu@ak.net littlesu.com Leighton Lee, CEO info@nhtiusa.com nhtiusa.com Dave House, Pres. ravenelectricinc.com Leverette Hoover, GM AK/Pacific Rim leverette.hoover@siemens.com siemens.com Benjamin English, Pres. benglish@tdxservices.com tdxservices.com Teri Mentzer, Pres. tmentzer@corp-tsgi.com superiorpnh.com

2012 2012

5 4

2015 2015

6 6

2007 2007

350 50

1960 1960

100 100

1938 1965

8 8

We are a full service electrical contractor, residential/commercial, fire alarms, data, phone.

1980 1980

5-20 5-20

A general, mechanical and electrical contractor. Architects, civil, mechanical and electrical engineers, licensed in twelve states. Construction project management. Importer, exporter and global project consultation.

1978 1978

81 75

General, Electrical and Engineering Contractor with emphasis in Telecommunications. In-house engineering, installation and project management services for urban and remote communications facilities, OSP and ISP cabling as well as electrical and communications equipment installation and integration.

1978 1978

26 26

Full service electrical company, residential commercial, industrial and generators. Data, telecommunications and security. 24-hour service.

Founded in 2012, Arctic Energy Inc. provides Combined Heat and Power energy solutions and Distributed Generation throughout Alaska and the Pacific Northwest. Arctic Solar Ventures is a fully integrated design/ build solar company located in Anchorage, Alaska. We serve residential and commercial markets with grid-direct solar PV and solar thermal systems. We are committed to the best quality, service, and safety in the industry. Delta Constructors specializes in Construction Management (estimating, planning, scheduling and project execution) and direct hire construction for structural, piping, mechanical, electrical and instrumentation disciplines in support of Up & Mid-Stream Oil and Gas development. Full service electric and communications contracting, including outside electric, inside electric and communications solutions for industrial, commercial, and institutional markets. Pre-construction, general contracting, specialty sub-contracting, and maintenance services provided throughout Alaska.

Energy Services Company (ESCO)/Total Building Integrator: to include Building Automa1849 400,000+ tion/Energy Management control systems, fire alarm, HVAC mechanical systems, security 1982 75 (card access, CCTV, intrusion, etc.), audio, video solutions, mass notification systems, electrical distribution and more. 1973 1973

95 20

Construction, Remote Power O&M, Controls & Switchgear Manufacturing/Install, Fuel Sales and Distribution.

1964 1964

150 150

Alaska Business | March 2018 www.akbizmag.com

COMPANY TOP EXECUTIVE

360 General 5400 Eielson St. Anchorage, AK 99518 Phone: 907-868-8880 Aaron Plumbing & Heating Company 2143 Standard Ave. Fairbanks, AK 99701 Phone: 907-452-3463 Fax: 907-456-1315 ABC, Inc. 401 Driveway St. Fairbanks, AK 99701 Phone: 907-457-2221 Fax: 907-457-5045 Ahtna Construction 110 W. 38th Ave., Suite 100 Anchorage, AK 99503 Phone: 907-929-5612 Fax: 907-929-5713 Alaska Concrete Casting 5761 Concrete Way Juneau, AK 99801 Phone: 907-780-4225 Fax: 907-780-4230 Alaska Dreams, Inc. 2081 Van Horn Rd., #2 Fairbanks, AK 99701 Phone: 907-455-7712 Fax: 907-455-7713 Alaska Frontier Constructors, Inc. PO Box 224889 Anchorage, AK 99522 Phone: 907-562-5303 Fax: 907-562-5309 Alaska Interstate Construction 2525 C St., Suite 305 Anchorage, AK 99503 Phone: 907-562-2792 Fax: 907-562-4179 Alaska Quality Builders PO Box 674 Willow, AK 99688 Phone: 907-495-6200 Fax: 907-495-6200

YEAR FOUNDED / ESTABLISHED IN ALASKA

WORLDWIDE / ALASKA EMPLOYEES

BUSINESS DESCRIPTION

Tyler Loken info@360general.com 360general.com Tom Fisher, Pres./GM tomfisher@aaronak.com aaronak.com Susan Ellison, Pres. info@akabc.com akabc.com David O’Donnell, Pres. info@ahtnaconstruction.com ahtnaconstructioncom Dave Hanna, Mng. Member alaskaconcretecasting@gci.net

2015 2015

3 3

General contractor.

1982 1982

14 14

1995 1995

15 15

1974 1974

100+ Pipeline and ROW maintenance, street and highway construction, electrical and mechani100+ cal services, rock and gravel processing and water/sewer line installation.

2004 2004

4 4

1994 1994

30 30

Design, sales and construction of fabric covered structures and pre-engineered metal buildings.

Meini Huser, Pres. sales@alaskadreamsinc.com alaskadreamsinc.com John Ellsworth, Pres. info@akfrontier.com akfrontier.com Dave Cruz, Pres. info@aicllc.com aicllc.com Karrol Johnson, Pres. akqual@mtaonline.net alaskaqualitybuilders.com

2005 2005

300+ Heavy Civil Construction. 300+

1995 1995

50 50

Alaska Interstate Construction, LLC is an Alaska company providing heavy civil construction services to private industry, as well as local, state and federal government agencies in the oil and gas, mining and public works sectors throughout Alaska-from the Aleutian chain to the North Slope.

1994 1994

5-10 5-10

Residential and commercial construction: home building, warehouses & shops (any size), additions, remodels, garages, decks, docks, and, of course, custom homes. “We Build Dreams.”

40 Years. Countless Miles. Span Alaska provides expert freight handling to the Last Frontier.

Alaska’s Premier Freight Provider Since 1978 www.akbizmag.com

1.800.257.7726 rate@spanalaska.com www.spanalaska.com March 2018 | Alaska Business

BUILDING ALASKA SPECIAL SECTION | CONSTRUCTION DIRECTORY

GENERAL CONTRACTORS

BUILDING ALASKA SPECIAL SECTION | CONSTRUCTION DIRECTORY

COMPANY TOP EXECUTIVE

Alaska Road Boring Co 8123 Hartzell Rd. Anchorage, AK 99507 Phone: 907-344-6895 Fax: 907-344-4489 Alborn Construction, Inc. 118 E. International Airport Rd. Anchorage, AK 99518 Phone: 907-276-4400 Fax: 907-276-4401 Arctic Solar Ventures 745 W. Fourth Ave., Suite 101 Anchorage, AK 99501 Phone: 907-268-4188 ASRC SKW Eskimos, Inc. 3900 C St., Suite 308 Anchorage, AK 99503 Phone: 907-339-6700 Fax: 907-339-6745 BC Excavating 2251 Cinnabar Lp. Anchorage, AK 99507 Phone: 907-344-4492 Blueprint North, Inc. 2825 Rose St., #202 Anchorage, AK 99507 Phone: 907-268-0073 Fax: 907-268-3062 Brice Environmental Services Corp. PO Box 73520 Fairbanks, AK 99707 Phone: 907-456-1955 Fax: 907-452-1067 Bristol Construction Services 111 W. 16th Ave., Third Floor Anchorage, AK 99501 Phone: 907-563-0013 Fax: 907-563-6713 Bristol Design Build Services 111 W. 16th Ave., Third Floor Anchorage, AK 99501 Phone: 907-563-0013 Fax: 907-563-6713 C & R Pipe and Steel, Inc. 401 E. Van Horn Rd. Fairbanks, AK 99701 Phone: 907-456-8386 CDF General Contractors, Inc. PO Box 211586 Anchorage, AK 99521 Phone: 907-337-7600 Fax: 907-272-2209 CH2M 949 E. 36th Ave., Suite 500 Anchorage, AK 99508 Phone: 907-762-1500 Fax: 907-762-1600 ChemTrack Alaska, Inc. 11711 S. Gambell St. Anchorage, AK 99515 Phone: 907-349-2511 Fax: 907-522-3150 CONAM Construction Co. 301 W. Northern Lights Blvd., Suite 300 Anchorage, AK 99503 Phone: 907-278-6600 Fax: 907-278-4401 Cornerstone General Contractors, Inc. 4040 B St., Suite 200 Anchorage, AK 99503 Phone: 907-561-1993 Fax: 907-561-7899 Cruz Companies Alaska 7000 E. Palmer Wasilla Hwy. Palmer, AK 99645 Phone: 907-746-3144 Fax: 907-746-5557 Davis Constructors & Engineers, Inc. 6591 A St., Suite 300 Anchorage, AK 99518 Phone: 907-562-2336 Fax: 907-561-3620 Delta Constructors 3000 C St., Suite 202 Anchorage, AK 99503 Phone: 907-771-5800 Fax: 907-771-5911 Door Systems of Alaska, Inc. 18727 Old Glenn Hwy. Chugiak, AK 99567 Phone: 907-688-3367 Fax: 907-688-3378 Doyon Associated, LLC 615 Bidwell Ave., Suite 100 Fairbanks, AK 99701 Phone: 907-374-9130 Fluor Alaska, Inc. 4300 B St., Suite 210 Anchorage, AK 99503 Phone: 907-865-2000 Fax: 907-865-2023

YEAR FOUNDED / ESTABLISHED IN ALASKA

Jay Frawner, Pres. arbcalaska.com

WORLDWIDE / ALASKA EMPLOYEES

BUSINESS DESCRIPTION

1982 1982

5 5

Horizontal/Directional drilling.

2001 2001

6 6

Full service commercial and residential General Contracting. Specializing in tenant improvements, building modifications, home additions and renovations.

2015 2015

6 6

1974 1974

200 200

1982 1982

40 40

Complete hauling and excavation services, environmental, water, sewer and storm utilities, site work, hydro excavation, GPS Site Mapping and fabrication.

2016 2016

12 12

We are a general contractor dealing with rough and finished carpentry/framing, trim work, doors/windows, insulation, interior and exterior painting, drywall repair and installation, and plumbing.

1991 1991

39 28

Brice is an ANC 8(a) and proud Calista subsidiary with a long history of performing environmental remediation/consulting, design-build, engineering, and construction in Alaska, nationwide, and the Pacific.

2003 2003

19 9

Heavy and civil construction, site restoration/development, highway, street and bridge construction.

2004 2004

9 4

1992 1992

50 50

1983 1983

4 4

Adam Alborn, Pres. info@albornconstruction.com albornconstruction.com Stephen Trimble, Founder/CEO company@arcticsolarventures.com arcticsolarventures.com Brady Strahl, Pres. info@achc.asrc.com asrcconstruction.com Gordon Bartel, Pres. admin@bcxllc.net bcxllc.net Skip Myers, Pres./CEO skip@blueprintnorth.com blueprintnorth.com Craig Jones, Pres. craigj@briceenvironmental.com briceenvironmental.com Travis Woods, CEO/Pres. info@bristol-companies.com bristol-companies.com Mark Morgan, GM info@bristol-companies.com bdbs.bristol-companies.com Dennis Wilfer, Pres. sales@crpipe.net crpipenadsteel.com Gary Murphy, Pres. cdfinc@alaska.net cdfincak.com Terry Bailey, Sr. VP/AK Reg. Mgr. Terry.Bailey@ch2m.com ch2m.com/alaska Carrie Jokiel, Pres. info@chemtrack.net chemtrack.net Dale Kissee, Pres. conamco.com

info@cruzconstruct.com cruzconstruct.com Josh Pepperd, Pres./CEO jenithf@davisconstructors.com davisconstructors.com Ed Gohr, CEO info@deltaconstructors.net deltaconstructors.net Beth Bergh, Owner beth@doorsystemsak.com doorsystemsak.com Warren Christian, Pres. doyonassociated.com Wyche Ford, AK GM fluor.alaska@fluor.com fluor.com

We provide professional design build management and vertical construction services. We offer clients a unique approach to efficiently and effectively manage complex projects from concept to completion. A full suite of capabilities enables us to successfully construct a wide array of building types. We offer new and used pipe (1/2”-60”), structural pipe, pilings, well casing pipe, bollards, steel posts, culverts and more. C & R Pipe and Steel in Fairbanks, is the largest pipe distributor in Alaska. When you choose us, you gain access to over 7,500 tons of steel pipe in our inventory. Tenant improvements, commercial, residential, renovation and repair of damaged buildings, new construction, commercial, elevator installation and general contracting. Focused on Green building practices. Another service we offer is construction consulting.

Large firm with Alaskan environmental work in site investigations & remediation, spill plan1946 19,462 ning, permitting, facility design; skill in complex field investigation, real-time evaluation, 1962 1,242 field labs and field screening methods, and in-field GIS/CAD for wastewater, hazardous waste and vapor intrusion. 1973 1973

5-15 5-15

Please check out our Statement of Qualifications at chemtrack.net/about_us.htm.

1984 1984

250 250

General construction contractor specializing in design and construction of oil and gas facilities and pipelines, mining facilities, water and sewer facilities, and other remote infrastructure projects.

1993 1993

25 25

General contracting utilizing collaborative project delivery methods for new commercial construction and the precision renovation of existing facilities for Alaska leading academic, civic, industrial, medical, nonprofit, oil and gas, and private development organizations.

1981 1981

226 170

Experts in resource development and heavy civil construction.

1976 1976

104 104

2007 2007

350 50

2000 2000

13 13

2006 2006

200 200

Joe Jolley, Pres. jjolley@cornerstoneak.com cornerstoneak.com Dave Cruz, Pres.

Arctic Solar Ventures is a fully integrated design/ build solar company located in Anchorage, Alaska. We serve residential and commercial markets with grid-direct solar PV and solar thermal systems. We are committed to the best quality, service, and safety in the industry. General contractor, wholly owned by ASRC Construction Holding Company. Providing commercial and government clients with turnkey construction services, including heavy civil, industrial water/wastewater treatment, building construction, renovation/modernization and utilities work throughout Alaska.

Davis brings a “full service” approach to projects, tailoring services to meet the specific needs of each client from design inception to project completion. Davis brings over 30 years of experience in Design/Build project delivery, representing over 3.5 million square feet of construction. Delta Constructors specializes in Construction Management (estimating, planning, scheduling and project execution) and direct hire construction for structural, piping, mechanical, electrical and instrumentation disciplines in support of Up & Mid-Stream Oil and Gas development. Commercial/industrial/architectural doors. Modernfold Flat wall partitions & Accordion Partitions, Skyfold vertical partitions. Rolling doors, grills, shutters. Fire-rated rolling doors. McGuire dock equipment. EPD/Renlita Hangar doors & Blast-resistant doors. MAXDoor Fabric Hangar Doors. Doyon Associated, LLC (DAL) specializes in arctic pipeline construction and associated infrastructure. DAL has an established presence in Alaska with offices in Fairbanks and Anchorage, and shop/yard facilities in Fairbanks and Deadhorse.

Fluor provides integrated engineering, procurement, fabrication, construction, main1912 61,551 tenance & project management solutions to clients globally. Our integrated solutions 1954 2 approach spans the entire project life cycle–improving the certainty of cost and schedule delivery with safe work performance.

Alaska Business | March 2018 www.akbizmag.com

YEAR FOUNDED / ESTABLISHED IN ALASKA

WORLDWIDE / ALASKA EMPLOYEES

Devon Grennan, CEO/Pres. info@gdiving.com gdiving.com Daniel Cope, GM dcope@jaybrant.com jaybrant.com George Flumerfelt, Pres./CEO

1979 1979

300 75

1983 1983

50 50

Public works, military, and commercial construction.

1962 1991

jason.morrison@redpathmining.com redpathmining.com; Facebook Dale Kaercher, Pres. knwinteriors@alaska.net k-winteriors.com Matthew Ketchum, Owner/Mng. Member

Underground Mining Contractor. SMM Pogo Mine: Mine Development and Production. 3,000 Coeur Alaska Kensington Mine: Mine Development. Chugach Electric: Access Tunnel. Cop140 per Valley Electric: Allison Lake—Access Tunnel. Sitka Blue Lake.

1985 1985

18+ 18+

K&W Interiors is a family owned business, providing Alaskans with fine quality interior finishes for over 30 years. K&W was selected as one of the top 500 Remodelers in the nation by Qualified Remodeler magazine. From Design to Installation your Satisfaction is our Guarantee.

2016 2016

15 15

Public works civil General Contractor (Mat-Su Borough) and construction aggregate supplier within the city limits of Wasilla (commercial and retail sales).

1974 1974

102 77

Knik Construction specializes in complex, logistically challenging projects in hard-toreach places. We’ve been building highways, roads, bridges, airstrips, breakwaters and more for more than forty years.

1980 1980

5-20 5-20

2003 2003

25 25

2004 2004

35 35

2017 2017

4 4

matt@khcivil.com Steve Jansen, Pres. knikinformation@lynden.com lynden.com/knik Dominic Lee, Owner littlesu@ak.net littlesu.com Tyler Loken info@lokenconstructionak.com lokenconstructionak.com Josh Pepperd, Pres. admin@massexcavation.com massexcavation.com Arthur Stevens, Founder/CEO arthur@nativeconstructionak.com nativeconstructionak.com

BUSINESS DESCRIPTION

Global is a leader in the marine services industry. With more than 35 years of experience in commercial diving, marine construction, marine casualty response, environmental services, and topside and subsea inspection and testing services, we offer safe, effective solutions to complex problems.

Framing, steel, solar, and siding contractor. Mass Excavation, Inc. was born out of a need for a responsive civil contractor capable of meeting the diverse range of services from large project development to more intricate building site improvement details. Mass X provides residential, commercial, and industrial site development. Commercial General Contractor providing services to help make your construction project reality. Our experience and commitment to delivering successfully completed projects is due to a highly disciplined implementation of services that include Design/Build, New Construction, Remodels, & Consulting.

COMMITTED TO SERVING ALASKA FOR OVER 70 YEARS

O L E S .CO M

We all have a job to do to keep Alaska’s economy strong. Our clients are the ones improving state transportation infrastructure, expanding military facilities and building new commercial and residential buildings. As a law ﬁrm, our job is simple – help our clients ﬁnd solutions to legal issues that arise at all stages of the construction process so the job can get done and our state can thrive. ALASK A

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March 2018 | Alaska Business

BUILDING ALASKA SPECIAL SECTION | CONSTRUCTION DIRECTORY

COMPANY TOP EXECUTIVE

Global Diving & Salvage, Inc. 5304 Eielson St. Anchorage, AK 99518 Phone: 907-563-9060 Fax: 907-563-9061 Jay-Brant General Contractors 460 Grubstake Ave. Homer, AK 99603 Phone: 907-235-8400 Fax: 907-235-8731 JS Redpath Corporation 16345 Lena Loop Rd. Juneau, AK 99801 Phone: 907-789-3752 K & W Interiors 9300 Old Seward Hwy. Anchorage, AK 99515 Phone: 907-344-3080 Fax: 907-349-5373 K&H Civil Constructors PO Box 877037 Wasilla, AK 99687 Phone: 907-373-4133 Fax: 907-373-3136 Knik Construction 6400 S. Airpark Pl. Anchorage, AK 99502-1809 Phone: 907-249-0208 Fax: 907-245-1744 Little Susitna Construction Co. 821 N St., Suite 207 Anchorage, AK 99501 Phone: 907-274-7571 Fax: 907-277-3300 Loken Construction 5400 Eielson St. Anchorage, AK 99518 Phone: 907-868-8880 Mass Excavation, Inc. PO Box 241093 Anchorage, AK 99524 Phone: 907-771-9272 Fax: 907-770-7752 Native Construction Management, Inc. 905 Richardson Vista Rd., #134 Anchorage, AK 99501 Phone: 907-885-4270

BUILDING ALASKA SPECIAL SECTION | CONSTRUCTION DIRECTORY

COMPANY TOP EXECUTIVE

New Horizons Telecom, Inc. 901 Cope Industrial Way Palmer, AK 99645 Phone: 907-761-6000 Fax: 907-761-6001 North Country Builders of Alaska 3435 N. Daisy Petal Cir. Wasilla, AK 99654 Phone: 907-373-7060 Olgoonik Construction Services 3201 C St., Suite 700 Anchorage, AK 99503 Phone: 907-375-4749 Osborne Construction Company PO Box 97010 Kirkland, WA 98083 Phone: 425-827-4221 Fax: 425-828-4314 Pacific Pile & Marine 700 S. Riverside Dr. Seattle, WA 98108 Phone: 206-331-3873 Fax: 206-774-5958 Paragon Interior Construction 11524 Tulin Park Loop Anchorage, AK 99516 Phone: 907-440-1424 Paug-Vik Development Corp. PO Box 429 Naknek, AK 99633 Phone: 907-258-1345 Fax: 907-222-1188 Price Gregory International 301 W. Northern Lights Blvd., Suite 300 Anchorage, AK 99503 Phone: 907-278-4400 Fax: 907-278-3255 PRL Logistics, Inc. PO Box 222029 Anchorage, AK 99522 Phone: 907-261-9440 Fax: 907-261-9441 Pruhs Construction 2193 Viking Dr. Anchorage, AK 99501 Phone: 907-279-1020 Fax: 907-279-1028 Quality Asphalt Paving 240 W. 68th Ave. Anchorage, AK 99518 Phone: 907-522-2211 Rain Proof Roofing 2201 E. 84th Ct. Anchorage, AK 99507 Phone: 907-344-5545 Fax: 907-349-3386 Ridge Contracting, Inc. 9600 Vangaurd Dr. Anchorage, AK 99507 Phone: 907-222-7518 Fax: 907-272-2290 Roger Hickel Contracting, Inc. 11001 Calaska Cir. Anchorage, AK 99515 Phone: 907-279-1400 Fax: 907-279-1405 Southeast Road Builders, Inc. HC 60 Box 4800 Haines, AK 99827 Phone: 907-766-2833 Fax: 907-766-2832 Spinell Homes, Inc. 1900 W. Northern Lights Blvd., Suite 200 Anchorage, AK 99517 Phone: 907-344-5678 Fax: 907-344-1976 STG Incorporated 11710 S. Gambell St. Anchorage, AK 99515 Phone: 907-644-4664 Fax: 907-644-4666 Taylored Business Solutions 6925 Big Mountain Dr. Anchorage, AK 99516 Phone: 907-223-3098 Fax: 800-469-8002 TDX Government Services 3601 C St., Suite 1000 Anchorage, AK 99503 Phone: 907-278-2312 The Superior Group, Inc. PO Box 230387 Anchorage, AK 99523 Phone: 907-344-5011 Fax: 907-344-5094 Turnagain Marine Construction 8241 Dimond Hook Dr., Unit A Anchorage, AK 99507 Phone: 907-261-8960 Fax: 866-383-0060

YEAR FOUNDED / ESTABLISHED IN ALASKA

WORLDWIDE / ALASKA EMPLOYEES

Leighton Lee, CEO info@nhtiusa.com nhtiusa.com Thomas Smith, Pres. tsmith@northcountrybuilders.com northcountrybuilders.com Steve MacRae, VP olgoonikconstructionservices.com

BUSINESS DESCRIPTION

1978 1978

81 75

1998 1998

3 3

Commercial and residential general contractor for new, remodel and all phases of construction.

2014 2014

23 23

Full service contractor: well P&A, general contracting, design/build, site preparation, demolition and waste management, personnel camp logistics, remodel and renovation, regulatory compliance, logistics and deployment, North Slope heavy equipment fleet.

1987 1987

42 8

General contractor focusing on commercial, industrial or residential buildings, designbuild, civil, site development, utilities and engineering work.

2008 2009

100 20

Pacific Pile & Marine is a heavy civil marine contractor. Our portfolio includes waterfront structures such as marinas and breakwaters; dredging and capping; sheet pile shoring; cofferdams; rock sockets and anchors; drilling; marine demolition; driven and drilled pile; and a host of other services.

2005 2005

12 12

Paragon Interior Construction is distinguished as the leader in prefab manufactured interior construction. Paragon is the Alaska and Washington Partner for DIRTT â&#x20AC;&#x153;Doing It Right This Timeâ&#x20AC;?, the leading manufacturer of prefab interior construction in North America.

1996 1996

10 10

Rural general contracting and environmental services.

George Osborne Jr., Pres. occ@osborne.cc osborne.cc Wil Clark, CEO info@pacificpile.com pacificpile.com Ken Prestegard, Partner ken@akdirtt.com akdirtt.com Maurice Labrecque, GM info@pdcnaknek.com pdcnaknek.com Robert Stinson, Sr. VP pricegregory.com

1974 1974

1,500 Pipeline, power, heavy industrial construction, EPC and consulting services. Infrastructure 300 construction services provider.

Ron Hyde, Pres./CEO info@pacrimlog.com pacrimlog.com Dana Pruhs, CEO dana@pruhscorp.com pruhscorp.com Todd Porter, GM colaska.com

2002 2002

40 40

PRL is Alaska-Owned and Operated with a high commitment to Safety. From expediting to your most complex, remote logistics challenges, PRL provides scalable logistics solutions worldwide to meet your logistics needs and ensure project success. We specialize in Alaska, the Lower 48, and beyond.

1958 1958

140 140

Heavy civil contractor, roads, airports, site work, underground utilities, industrial.

1971 1971

500 500

Highway, road, and airport runway construction throughout the State of Alaska.

1962 1962

110 110

Specializing in residential & commercial roofing & waterproofing. Re-roofs, new construction, shingles, shakes, metal, built-up roofing as well as single-ply. We have a year-round dedicated repair & maintenance division, as well as an onsite sheet metal shop. We provide service to the entire state.

2000 2000

5-45 5-45

Heavy civil, rural airport construction, road construction, fuel system installation and removal, contaminated sites clean up and remediation, demolition, underground construction, and remote work throughout Alaska.

1995 1995

80 65

General contractor; commercial construction vertical and civil work.

1996 1996

49 49

Road construction, bridge work and excavation.

1987 1987

26 26

General contractor-residential and light commercial construction.

1991 1991

105 105

Rural infrastructure construction, renewable energy systems, tower construction, power generation and distribution facilities, pile foundations, bulk-fuel systems, waterfront projects, and telecommunications.

2013 2013

1 1

Interior renovations with conventional and/or manufactured interior construction. Providing excellent project management, contract administration, project control, change organizational management needed to get projects started efficiently and effectively.

1973 1973

95 20

Construction, Remote Power O&M, Controls & Switchgear Manufacturing/Install, Fuel Sales and Distribution.

1964 1964

150 150

2014 2014

30 30

Pat Reilly, Pres. info@rainproofroofing.com rainproofroofing.com Drew McLaughlin, Pres. drew@ridgecontracting.org ridgecontracting.org Mike Shaw, Pres. contact@rhcak.com rogerhickelcontracting.com Roger Schnabel, Pres. Charles Spinelli, Pres. spinell@spinellhomes.com spinellhomes.com Brennan Walsh, Pres. info@stgincorporated.com stgincorporated.com Tamie Taylor, Mng. Member ttaylor@tbsak.com tbsak.com Benjamin English, Pres. benglish@tdxservices.com tdxservices.com Teri Mentzer, Pres. tmentzer@corp-tsgi.com superiorpnh.com Jason Davis, Pres. jdavis@turnagain.build turnagain.build

The Superior Group, Inc. serves general contractors and building owners as a full service mechanical and electrical contractor, whose work is backed by our long-standing quality and experience. We field an all-pro team with extensive credentials and a proven history of on-time completion. Turnagain Marine specializes in complex heavy marine construction projects, including large diameter socketing, rock anchors, offshore mooring and heavy lift requirements. Over the last decade, their management team has delivered more than fifty design-build and hard bid projects from Ketchikan to Nome.

Alaska Business | March 2018 www.akbizmag.com

YEAR FOUNDED / ESTABLISHED IN ALASKA

WORLDWIDE / ALASKA EMPLOYEES

BUSINESS DESCRIPTION

Amie Sommer, Member amie@tutkallc.com tutkallc.com Clayton Arterburn, GM

1999 1999

1978 Clayton.Arterburn@UICConstructionAK.com 1978 uicconstructionak.com Michael Fall, Pres. 1977 info@unitcompany.com 1977 unitcompany.com Bill Watterson, Pres. 1981 info@wccak.com 1981 wattersonconstruction.com

10-50 General Contractor (roads, bridges, culverts, site work), environmental cleanup and 10-50 consulting. WBE/DBE, HUBZone.

95 95

Commercial building and civil general contractor focusing primarily on Arctic construction through hard-dollar bid, design/build turn-key, and construction management. Services include pre-construction and planning, cost estimating, remote logistics, scheduling, and best-value engineering.

45 45

Commercial General Contractor involved in all types of building construction including design-build, construction management and design-assist.

75 75

Watterson Construction Co. is a commercial and light industrial general contractor. Based in Anchorage and working exclusively in Alaska, Watterson specializes in Pre-Construction Services and Alternate Delivery Methods including Design/Build, CM@Risk, and Best Value projects.

HEAVY EQUIPMENT DEALERS COMPANY TOP EXECUTIVE

Airport Equipment Rentals 1285 Van Horn Rd. Fairbanks, AK 99707 Phone: 907-456-2000 Fax: 907-457-7609 Alaska Crane 11900 S. Gambell St. Anchorage, AK 99515 Phone: 907-522-9004 Fax: 907-522-9047 Construction Machinery Industrial 5400 Homer Dr. Anchorage, AK 99518 Phone: 907-563-3822 Fax: 907-563-1381 Craig Taylor Equipment 733 Whitney Rd. Anchorage, AK 99501 Phone: 907-276-5050 Equipment Direct, Inc. PO Box 425 Willow, AK 99688 Phone: 907-696-7375 Fax: 907-696-7375

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YEAR FOUNDED / ESTABLISHED IN ALASKA

WORLDWIDE / ALASKA EMPLOYEES

BUSINESS DESCRIPTION

Jerry Sadler, Owner/Pres. aerinc4@alaska.net airportequipmentrentals.com Brennan Walsh, Pres. Info@alaskacrane.net alaskacrane.net Ken Gerondale, Pres./CEO o.prestwick@cmiak.com cmiak.com Chris Devine, Pres./CEO facebook.com/craigtaylorequipment craigtaylorequipment.com L. Butera, Pres. sales@eqdirect.com eqdirect.com

1986 1986

100 100

Largest Industrial/Construction heavy equipment rental company in Alaska. Providing rentals, sales, and service for the construction and oil & gas industries.

2001 2001

21 21

Operated Crane Services, Lift Planning, and Heavy Lift Specialists.

1985 1985

105 105

Construction and mining equipment sales, rentals, service, and parts.

1954 1954

55 55

Factory authorized dealer for: Doosan large excavators, loaders & articulated trucks; Bobcat mini-loaders & excavators; Dynapac compaction rollers; Fecom land clearing attachments & carriers. Providing sales, rentals, parts, and service. Alaskan owned and operated for more than sixty years.

1985 1985

2 1

Construction equipment sales, parts, rentals. Morooka all-terrain dump carriers specialty, 14K GWV tilt trailers, Japan origin machine parts.

March 2018 | Alaska Business

BUILDING ALASKA SPECIAL SECTION | CONSTRUCTION DIRECTORY

COMPANY TOP EXECUTIVE

Tutka 2485 E. Zak Cir., Suite A Wasilla, AK 99654 Phone: 907-357-2238 Fax: 907-357-2215 UIC Construction 6700 Arctic Spur Rd. Anchorage, AK 99518 Phone: 907-762-0123 Fax: 907-762-0131 UNIT COMPANY 620 E. Whitney Rd. Anchorage, AK 99501 Phone: 907-349-6666 Fax: 907-522-3464 Watterson Construction Co. 6500 Interstate Cir. Anchorage, AK 99518 Phone: 907-563-7441 Fax: 907-563-7222

BUILDING ALASKA SPECIAL SECTION | CONSTRUCTION DIRECTORY

COMPANY TOP EXECUTIVE

Equipment Source, Inc. 1919 Van Horn Rd. Fairbanks, AK 99701 Phone: 888-868-9049 Fax: 907-458-7180 Haltness Equipment 205 Meals Ave. Valdez, AK 99686 Phone: 907-835-5418 Fax: 907-835-3694 Loken Crane, Rigging, & Transport 5400 Eielson St. Anchorage, AK 99518 Phone: 907-868-8880 N C Machinery 6450 Arctic Blvd. Anchorage, AK 99518 Phone: 907-786-7500 Fax: 907-786-7580 North Star Equipment Services 790 Ocean Dock Rd. Anchorage, AK 99501 Phone: 907-272-7537 Fax: 907-272-8927 North Star Terminal & Stevedore Co. 790 Ocean Dock Rd. Anchorage, AK 99501 Phone: 907-263-0120 Fax: 907-272-8927 TrailerCraft | Freightliner of Alaska 222 W. 92nd Ave. Anchorage, AK 99515 Phone: 907-563-3238 Fax: 907-561-4995 Washington Crane & Hoist 651 E. 100th Ave., Unit B Anchorage, AK 99515 Phone: 907-336-6661 Fax: 907-336-6667 West-Mark Service Center-Fairbanks 3050 Van Horn Rd. Fairbanks, AK 99709 Phone: 907-451-8265 Fax: 907-451-8273 Yukon Equipment, Inc. 2020 E. Third Ave. Anchorage, AK 99501 Phone: 800-478-1541 Fax: 907-258-0169

YEAR FOUNDED / ESTABLISHED IN ALASKA

WORLDWIDE / ALASKA EMPLOYEES

Nick Ferree, GM NickF@equipsrc.com equipmentsourceinc.com Erik Haltness, Mgr. sales@haltness.com haltness.com Tyler Loken info@lokencrane.com lokencrane.com John Harnish, Pres./CEO jstubben@ncmachinery.com ncmachinery.com Jeff Bentz, Pres. facebook.com/nsts.nses northstarak.com Jeff Bentz, Pres. facebook.com/nsts.nses northstarak.com Lee McKenzie, Pres./Owner Facebook, Instagram and Twitter trailercraft.com Mike Currie, VP SDick@washingtoncrane.com washingtoncrane.com Scott Vincent, CEO wwalker@west-mark.com west-mark.com Charles Klever, Pres. info@yukoneq.com yukoneq.com

BUSINESS DESCRIPTION

2000 2000

45 30

ESI designs, develops, & builds quality, innovative worksite products for the oil, mining, construction, & agriculture industries. All of our products are BUILT ARCTIC TOUGH, built to last, & tested in challenging environments. We also specialize in Kubota Tractors. SalesService-Parts-Rentals.

1987 1987

10 10

Equipment Rentals and Sales.

2014 2014

4 4

Full service mobile crane, rigging, and transport operations.

1926 1926

1950 1950

25 25

We provide crane and equipment solutions. We have state of the art ABI Mobilram machines, for large diameter drilling, with vibratory and hammer attachments, built for driving pile. We are DOT approved for bridge foundations.

1950 1950

20 20

Stevedore, Marine logistics, specializing in providing crane and equipment solutions. We have state of the art ABI Mobilram machines, for large diameter drilling, with vibratory and hammer attachments, built for driving pile. We are DOT approved for bridge foundation.

1969 1969

50 50

Parts, sales and service for trucks, tractors, trailers, Sprinters, transport equipment, snow plows, and sanders.

1975 2008

35 8

Crane builders, crane design, new crane sales, new hoist sales, lifting equipment design and sales. Material handling solutions for industry, hoists, job cranes, work stations, chain falls, lever hoists, crane upgrades, crane maintenance, crane inspection, crane repair, hoist repair, and crane parts.

1967 2009

215 8

Liquid transportation tank trailer repair.

1945 1945

38 38

Sales, service, parts, rental and lease equipment, including Case, Trail King, Elgin, Vactor, Oshkosh, Etnyre, Monroe, Trackless, and Snow Dragon. Anchorage, Fairbanks, and Wasilla locations. A subsidiary of Calista Corp.

Alaska Business | March 2018 www.akbizmag.com

Only pay for the speed you need... Dynamic Routing! SM

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OIL & GAS

Unconventional but Not Impossible Technological advances increase access to oil By O’Hara Shipe

The Hugo Stolte A2 well in South Texas’ Live Oak County at sunset. Photo by Patrick Currey/ courtesy of ConocoPhillips

Alaska Business | March 2018 www.akbizmag.com

nthony F. Lucas ushered in the “oil age” in 1901 in Beaumont, Texas, drilling a well that blew oil 150 feet into the air at a rate of 100,000 barrels of oil per day. After one hundred years of operations, the US oil and gas industry found itself uncomfortably situated between increasingly obsolete drilling methods and the fear that oil production might soon reach its natural limit. “If you look back probably to 2005—where we were as an industry within North America—it was a pretty dismal outlook. Total oil production was declining rapidly, and we were thinking we were going to be so reliant on importing hydrocarbons, both gas and liquids, from other countries to sustain our energy needs,” explains ConocoPhillips’ Di-

rector of Unconventional Reservoirs Excellence Nathan McMahan. Instead of simply moving out or moving on, the US oil industry rose to the challenge of developing more affordable and efficient ways of extracting oil. And the industry succeeded, both in the United States and worldwide. Additional availability of oil, combined with a decline in worldwide demand, contributed to oil prices crashing from $100 per a barrel to $50 in 2015. Again the industry adjusted by finding or creating efficiencies and improved technology in the new low-price environment. Innovation takes substantial technological investments that are not guaranteed to work, and as such for some organizations the focus continues to be on operating costs rather than enhancement.

A leading service provider to Alaska’s natural resource industry since 1976, Fairweather is uniquely equipped to support operations in the remotest of regions. Fairweather is committed to providing a comprehensive remote service package with a focus on safety.

WE’ VE GOT YOU COVERED ON THE NORTH SLOPE AND BEYOND

F a i r w e a t h e r, L L C | A n c h o r a g e , A l a s k a | w w w. f a i r w e a t h e r. c o m

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March 2018 | Alaska Business

According to McMahan, the outlook for the industry has completely changed from a limited resource in the early 2000s to a “big abundance resource” in the last few years. McMahan believes that this change can largely be attributed to a paradigm shift in thinking. “Somebody believed there might be enough hydrocarbons down there to still be extracted and they asked the question, ‘Why haven’t we tried combining existing technologies?’”

Advancing Drilling Techniques An early technology aimed at accessing unconventional oil resources was hydraulic fracturing, developed around the 1950s. In the 1980s, horizontal drilling began to see large-scale use. More commonly referred to as fracking, hydraulic fracturing is a well stimulation technique in which rock is fractured by a pressurized liquid to create cracks in the deep-rock formations through which natural gas, petroleum, and brine flow more freely. Another technology, horizontal drilling, is a process of drilling a well from the surface to a subsurface location just above the target oil or gas reservoir and then deviating the well bore from the vertical plane around a curve to intersect the reservoir with a near-horizontal inclination. As most oil and gas reservoirs are much more extensive in their horizontal dimensions than in their vertical dimensions, horizontal drilling exposes significantly more reservoir rock to the wellbore than would be the case with a conventional vertical well. Simply put, when more reservoir is exposed to the wellbore, one is able to

achieve more reservoir contact, increasing flow rates as well as ultimate expected recovery. The ancillary benefits of the combined technologies are three-fold. First, operators are often able to develop a reservoir with a significantly smaller number of wells, as each horizontal well can drain a larger rock volume than a vertical well could. Second, a horizontal well can significantly delay the onset of production problems that engender low production rates and premature well abandonment. Third and finally, horizontal drilling can enable a well to produce during drilling operations, preventing much of the formation damage that normally occurs with traditional horizontal drilling techniques. Although they have proven successful, horizontal drilling and fracking are only two of the innovations revitalizing domestic oil production. According to McMahan, today the oil industry is talking about drilling increasingly longer laterals, or superlaterals. Superlateral drilling gives developers access to hard-to-reach wells such as those situated under a town, lake, or difficult-to-drill rock formation. The longest onshore lateral ever drilled in the United States belongs to Pennsylvania-based Eclipse Resources Corporation’s Purple Hayes well, which has a measured depth of 27,048 feet (5.1 miles) and lateral spans of 18,544 feet (3.5 miles). Remarkably, new technology enabled the site to be drilled in only 17.6 days. To help illustrate the rapid improvements in lateral drilling technology, one need only compare Eclipse’s initial horizontal plays in 2014 to their recent successes. Over

the past three years, the company has steadily increased lateral lengths from approximately 6,000 feet in their first well to an average of 7,000 feet in 2014 and 9,000 feet in 2015. Additionally, their longest superlateral took 15 percent less time to drill than their 2015 plays. Of course, superlateral drilling would not have been possible without reimagining the drill bit. According to Schlumberger, an international “provider of technology for reservoir characterization, drilling, production, and processing to the oil and gas industry,” the five-blade, 8.5-inch bit used at Purple Hayes was designed specifically for drilling extended lateral sections. The improved drill bit was designed for “optimal performance and improved cleaning using modeling solutions, integrated dynamic design, and computational fluid dynamics,” states the company. Another game changing innovation that has developed alongside superlaterals is multilateral wells. With several wellbores radiating from one main borehole, multilateral wells have the potential to optimize the extraction of oil from areas where subsurface productive intervals lie atop one another. Another way to visualize these intervals is to think of them like a stacked parfait in which each layer contains its own oil producing wells. While there is no guarantee that each interval will be productive, this strategy enables developers to extract more oil and gas from a given acre than they could in a single-zone scenario. “We were finding that these horizontal wells don’t drain the full height of the reservoir be-

It’s here!

The Alaskan Arctic is now connected with 21st century communications. The Quintillion fiber system is bringing high speed internet to northern Alaska communities from Nome to Prudhoe Bay. Introduction of high-speed internet capacity to Quintillion’s markets is improving health and education services, helping to spur economic development, empowering local businesses, and allowing consumers access to video and other high-speed applications.

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

Alaska Business | March 2018 www.akbizmag.com

cause we took the conventional well from being vertical to horizontal. Then we discovered that we can access more layers of our horizontal wells to help drain some of these thicker reservoirs. Some of our assets have two-layer developments all the way up to potentially a four-layer development plan, depending on the thickness of the reservoir,” says McMahan of ConocoPhillips’ multilateral wells. “It’s an innovation we’re quite proud of and one that we’ve been on the top edge of developing.” While the technology has many advantages, superlateral drilling has been met with opposition from smaller vertical producers who claim that expanding horizontal drilling could interfere with their wells and production. A handful of lawsuits in the Lower 48 have even been filed alleging “well bashing,” or that horizontal producers are encroaching on the existing production of vertical wells. Drilling longer, more complicated wells also poses the challenge of striking a balance between keeping a well simple and standardized and advancing technology to improve the costs and recovery for the well’s life cycle. Other concerns include the use of fracking, which many fear may cause climate change, water contamination, extensive land use, increased earthquakes, noise pollution, and adverse health effects on humans, just to name a few. Developers are also combating resistance to change within their own industry. As innovations are being aided by the use of computer simulations, technology is developing at such a rapid rate that traditional research

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and development techniques are giving way to experimentation. “We see that the progression is just rapidly taking off, but the learning curve is still there. We’re still exploring, trying to figure out the mechanism of why some of these trends work and others don’t. Really the drill bit has been leading our learning as an industry, and techniques and technologies to actually study and understand why are lagging and trying to catch up. So, a lot of experimentation has been taking place to account for that gap in learning,” explains McMahan.

MAPS As a market that is well-known for conventional vertical drilling, Alaska has been measured when it comes to adopting Lower 48 techniques to approaching unconventional resources. Many unconventional drilling techniques rely heavily on supportive infrastructure—in particular, the size of the land lease and its accompanying pad—that may be lacking in the 49th State. Additionally, while unconventional plays were being developed in the Lower 48, Alaska’s conventional plays were still running a high-yield and weren’t in a position that required innovation. Now that oil prices have plummeted, an investment in the experimentation of new unconventional techniques seems like too high of a financial risk for many Alaska oil and gas developers, and of course some Alaskans share similar concerns about the use of fracking and horizontal drilling.

“MAPS allows developers to explore without the fear of what happens if their well doesn’t produce. They can use our system to test the reservoir before building some huge, expensive facility and finding out it doesn’t produce.”

—Craig Morrison, President NANA WorleyParsons

Even with the risks and state-specific challenges, there is one Alaska company determined to bring exploration innovation to the Last Frontier. Kairos, a subsidiary of NANA WorleyParsons, announced in November 2017 that they patented the Mobile Arctic Production System (MAPS). Named after the ancient Greek word meaning the right, critical, or opportune moment, Kairos believes that its system can not only increase production but also leave a smaller environmental footprint, all while saving money. As its name implies, MAPS is a mobile production system that stands in sharp contrast to the expensive, more permanent facilities already established on the North Slope. Operating on a “design once, build many” approach, MAPS can be configured to do anything from

March 2018 | Alaska Business

Photo by O’Hara Shipe

separating gas from produced liquid to producing sales-quality crude oil. With its leased based system, MAPS reduces the initial capital investment that goes hand-in-hand with building a facility, allowing developers to incur a higher return on their investment while also minimizing their decommissioning costs. “Ultimately, MAPS allows developers to explore without the fear of what happens if their well doesn’t produce. They can use our system to test the reservoir before building some huge, expensive facility and finding out it doesn’t produce,” explains NANA WorleyParsons President Craig Morrison. “Additionally, once commissioned, we can have a site built within twelve to eighteen months, which enables developers to quickly pivot and accommodate changes in drilling strategies.” Although MAPS shows promise, Kairos has yet to build and install its first operational unit. Citing hesitation on the part of developers who have a “tried and true” mentality, Kairos may be facing an uphill battle, but they are confident all it will take is the investment of one developer to get MAPS off the ground. While they hope to attract large developers, Morrison understands that their first takers may be smaller operations that want to try and make one last play on their existing wells. If history is any indicator of the future, it very well may be the risk-takers that reignite the Alaska oil market. R

Craig Morrison, President, Nana WorleyParsons (left) and Lori O’Malia, Business Solutions Manager for Kairos LLC, pose in front of a Mobile Arctic Production System (MAPS) display.

O’Hara Shipe is a freelance writer in Alaska.

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Alaska Business | March 2018 www.akbizmag.com

“

It’s easy. You give your employees an added benefit. I get a college savings plan.

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Give your employees a benefit upgrade today. Enroll in the Payroll Deduction Option offered by the University of Alaska College Savings Plan. The Payroll Deduction Option is an easy, no-cost employer benefit program that adds value to your benefits package while contributing to the overall financial well-being and college savings goals of your employees.

UACollegeSavings.com

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If you are not an Alaska resident, you should compare this Plan with any 529 college savings plan offered by your home state or your beneficiary’s home state and consider, before investing, any state tax or other state benefits, such as financial aid, scholarship funds, and protection from creditors that are only available for investments in the home state’s plan. You can also visit our website or call the phone number to request a Plan Disclosure Document, which includes investment objectives, risks, fees, charges and expenses, and other information that you should read and consider carefully before investing. Offered by the Education Trust of Alaska. T. Rowe Price Investment Services, Inc., Distributor/Underwriter. C3UZDFVTG 201711-312746

TRANSPORTATION

Keeping Alaska Fueled Up Fuel delivery via truck, ship, and even a rolling drum By Vanessa Orr

hile many Alaskans are daydreaming of warmer days ahead, those who deliver fuel to the state’s residents remain knee-deep winter work until temperatures rise regardless of the calendar date. Trying to keep customers warm and companies running in temperatures that can sometimes reach 50 below is challenging— especially in a business in which margins are small and competition fierce. “We fuel Alaska, whether a customer uses one hundred gallons a year or millions of gallons a year,” explains Jasper Hall, vice president of Crowley Fuels, which has been serving the state since 1953. “Our customers are both residential and commercial and include construction, mining, fishing, logging, aviation, utilities, retail fueling stations, and the federal, state, and local government. And we serve them regardless of size or requirements.”

Where Does the Fuel Come From? A family-owned business, Crowley operates out of offices in twenty-one Alaska cities

from Kotzebue to Ketchikan to Hooper Bay. “Historically, we look at markets as either highway-served or marine-served,” says Hall. “Cities, towns, and villages on the road system are served by our linehaul fleet, which includes 35 power units and roughly 200 pieces of equipment including trailers. We use the highway system to transport fuel from the three refineries in the state to serve Anchorage, Fairbanks, and all points in between.” In southcentral Alaska, for example, Crowley transports fuel from Petro Star and Tesoro terminals in Anchorage to areas including Palmer and Wasilla, where it is stored in terminals for use by smaller end users served by the company’s local delivery fleet of about ninety trucks. Southeast cities are slightly different, as their fuel supply is transported over water to local terminals. Delta Western, which provides jet fuel, diesel, heating oil, and aviation gas to Anchorage, Juneau, Fairbanks, Ketchikan, and Sitka, buys fuel at truck racks or in Kenai or Valdez to serve Anchorage and Fairbanks.

“For our other locations, particularly southeast, we pull from the Pacific Northwest and transport fuel via barge,” says Kirk Payne, vice president of supply and terminals. Petro Star is a little different from other fuel delivery services in that it both produces and distributes its own fuel. “From its beginnings in North Pole with only one small refinery, Petro Star and ASRC [its parent company] understood that vertical integration—being able to deliver and sell its own products directly to consumers—was key to its success,” explains Doug Chapados, president and CEO of Petro Star Inc. “Through its thirty-four-year history, Petro Star has grown via vertical integration and acquisition, expanding sales and operations into the Aleutians, Kodiak, and southcentral Alaska through its marine distribution division, North Pacific Fuel, as well as its Interior heating oil division, Sourdough Fuel.” Most of Petro Star’s fuel sales are produced at its North Pole and Valdez refineries, and it delivers fuel to residential, commercial, and

Most of Petro Star’s fuel sales are produced at its North Pole and Valdez refineries and it delivers fuel to residential, commercial, and military consumers via pipeline, barge, and truck. Here a fuel barge loads in Valdez. Image courtey of Petro Star, Inc.

Alaska Business | March 2018 www.akbizmag.com

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Customers on the road system are served by Crowley’s linehaul fleet, which includes 35 power units and roughly 200 pieces of equipment, including trailers. Image courtesy of Crowley Maritime Corporation

military consumers via pipeline, barge, and truck. The company operates divisions in Fairbanks, Anchorage, Kodiak, Valdez, and Unalaska/Dutch Harbor. According to Chapados, residential deliveries in the Interior areas are delivered by truck directly to customers’ tanks, as well as via bulk fuel deliveries to Petro Star’s bulk plant facility in Fairbanks. Military deliveries include barge deliveries to Defense Logistics Agency storage in Anchorage/JBER and pipeline deliveries to Eielson Air Force Base. “Road accessible installations are served by truck, and our commercial deliveries can be picked up directly from truck racks located at both refineries and several terminals, via barge or via truck,” he adds. Alaska Fuel Services also provides home heating oil to locations in Fairbanks and North Pole, as well as occasional deliveries to Delta, Nenana, and a few other outlying communities. “The majority of our fuel comes from the refinery in North Pole, though if the season is going well and a lot of fuel is being used, we might also start sending A trains (fifty-three-foot tankers with thirty-foot pumps that can carry 13,000 gallons) to Anchorage or Valdez,” according to Ben Wilker, owner and operational manager. He continues, “When it’s 40 below in Fairbanks, you’re sucking down a lot of fuel; Interior prices go up while coastal prices remain the same, so if the margins hit a certain number, we send trucks that way.” www.akbizmag.com

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Crowley is an official sponsor of Iron Dog, “The world’s longest, toughest snomobile race,” and routinely participates in other sponsorhip opportunities in the communities it serves. Image courtesy of Crowley Maritime Corporation

Alaska Business | March 2018 www.akbizmag.com

Delivering in Alaska In addition to the effort that it takes and the distances involved just to get trucks loaded, fuel companies face many other challenges as well—some of which may be unexpected. “Of course we face weather and road conditions; for example, the road to Valdez may be closed due to avalanches, so we constantly monitor weather conditions which dictate where we go and how we can do it safely,” says Hall. “Believe it or not, traffic is also a problem,” he laughs. “In the Anchorage bowl, traffic is a consideration in summer or winter. An incident on the Glenn Highway impacts our ability to schedule deliveries, and a tourist in the middle of the road taking pictures of wildlife can also slow us down.” “Alaska weather is unpredictable and often extreme, both on the land and seas,” agrees Chapados. “Wintertime storms can generate

Image courtesy of Alaska Aerofuel

Alaska Aerofuel, which serves North Star Borough areas within one hundred miles of Fairbanks and is also contracted for remote site work, gets its fuel from Petro Star Refinery and Flint Hills Tank Farm in North Pole. “We pick up via tanker truck from both of those locations; when reloading, we will travel to those locations or load product at our own facility,” says Paul Gibson, president and CEO, adding that the company has its own tanks for storage. “The reasoning for this is that time is money, and it helps with congestion at the load racks.”

A home fuel delivery in progress.

mountainous waves and heavy icing conditions that pose serious safety concerns for Petro Star’s two ocean-going charter barges, and Cook Inlet ice formations can at times be so severe that the US Coast Guard actually closes the Port of Alaska to barge traffic. “Icy roads are routine obstacles for Petro Star’s heating oil delivery drivers, regardless of where they are located. While delivering fuel, the Interior’s negative 50 degree cold snaps are equally hard on drivers and their

equipment,” he adds. Delivering fuel in northern Alaska can be especially grueling, not only because of plunging temperatures but because even the more “urban” areas are not really urban. “Fairbanks proper is about 30,000 people; more people live out of town than in town,” says Gibson. “You have five miles of city congestion and the amenities of a big city—and five miles later you can be in the middle of nowhere.

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March 2018 | Alaska Business

Alaska Aerofuel serves North Star Borough areas within one hundred miles of Fairbanks and is also contracted for remote site work. Here the company refuels a corporate jet. Image courtesy of Alaska Aerofuel

“Sometimes you’re delivering to cabins on the side of mountains, so you drive up as far as you can drive, unload fuel into a drum, and roll it down the trail where it’s hand-pumped from the barrel into the tank at the house,” says Gibson, who has even delivered fuel by following a frozen snow machine trail. “This is for a smaller percentage of customers, but it’s definitely still happening today.” “It can be tough, even when you make it to the house,” agrees Wilker. “Some houses are marked and near the street, and that’s great. Other times, you’re dealing with steep

driveways that aren’t plowed and stuff piled in front of tanks. It takes a lot of manpower to drag a 1.5 inch hose full of fuel around.” Intense temperatures can wreak havoc not just for drivers but for the equipment as well. “When you’re dealing with a ten-day long cold spurt, there are environmental concerns like leaking valves,” says Gibson. “A duck pond—a neoprene tarp surrounded by foam—is used under suspect areas while pumping to ensure that we capture every drop. When you’re making equipment to deal with conditions from 90 above to 60 be-

low, there’s no way to create something useable across this temperature zone without exceptions.” Other challenges facing Alaska’s fuel suppliers don’t have anything to do with the weather. “Regulatory burdens placed on refiners throughout the US, as well as the special regulatory requirements found only in Alaska, can present unique hurdles to producing and delivering fuel,” says Chapados. “As new regulations are developed and implemented, whether in DC or Juneau, Petro Star must continuously invest in additional processes

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and personnel to first understand and then work to mitigate impacts to its customers. “The speed with which the new regulations come out can be daunting; for example, new AQ regulations in the Interior are being developed right now with plans for implementation by 2019,” he adds. “These new regulations could require a change in our home heating oil specifications, making it necessary to transport more fuel from our Valdez refinery rather than produce it locally in North Pole. These types of changes can have serious ramifications across Petro Star’s operations and can add significantly to fuel prices, harming consumers.”

Giving Back While fuel providers are most appreciated during Alaska’s long, cold winters, they contribute to the state’s well-being year-round. “We employ more than 300 people across Alaska in good-paying jobs with good benefits; these are people who live in the communities where they work,” says Hall. “Our team members take part in hundreds of hours of volunteer efforts, doing community cleanups, charity runs, serving on nonprofit boards, working with youth in sports, and more. On the corporate level, we support events across Alaska including the Iron Dog, Kuskokwim 300, military appreciation events, fishing derbies, and the Iditarod.” In 2010, the company established the Thomas B. Crowley Sr. Memorial Scholarship that provides four scholarships annually to the University of Alaska Fairbanks College of Fish and Ocean Sciences. “For the past five years, we’ve also provided an Alaska Air Carriers Association scholarship for students earning degrees or certifications in aviation maintenance, administration, or professional piloting, which is our way of supporting the future of aviation in Alaska,” says Hall. Through the Crowley Cares Foundation, employees can also set aside a certain amount of money to be designated to a charity each pay period with Crowley matching it 100 percent. Petro Star also supports the communities where it does business either monetarily or through employee support/volunteerism. Groups helped over the past few years include the Arctic Education Foundation, Arctic Slope Community Foundation, Boys & Girls Clubs-Alaska, Coast Guard Foundation, Covenant House Alaska, Food Bank of Alaska, and United Way of Alaska, among others. Alaska Fuel Services sponsors kids’ sports and also provides discounts to military families and seniors. Through its Community Rewards Program, customers can save money and also give to their favorite organizations. “Families whose children go to Fairbanks Montessori School, for example, receive a 10 percent discount on fuel, and we add that discount up and write a check every month to the school,” explains Wilker. “We do this for several organizations in town, with some checks totaling more than $1,000.” “We’re a 100 percent local business, and we believe in keeping the money in town,” he www.akbizmag.com

adds. “Everything we make, we put back into the community.” Delta Western also supports the communities it serves, with the majority of its philanthropic donations revolving around youth development and secondary education. “These causes are very important to us, which is why every year we provide one $10,000 scholarship to a graduating high school senior in every community where we operate,” says Payne. Alaska Aerofuel provides discount rates to specific groups of customers, as well as contributes to community organizations. “We are very engaged but would rather give silently,” says Gibson. “We have a widow rate for example, and we are also regular contrib-

utors to the local food bank, as well as several humanitarian outlets like Love INC and the Fairbanks Rescue Mission in addition to Explore Fairbanks, the Chamber of Commerce, and more.” While it’s not an easy job, fuel suppliers are essential to the operation of the state. “You have to make sure that you’ve done everything you can, and that the customer is happy,” says Wilker. “You have to go that extra mile.” R Vanessa Orr is a freelance writer and former editor of the Capital City Weekly in Juneau.

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ENERGY

Hydro, Solar, and Acquisitions Energy utilities seek to expand renewables and reduce costs By Tasha Anderson

nergy is an ongoing issue for all of Alaska as rural communities struggle to reduce heating costs and the state’s population centers look for affordable solutions to address the cost of living and working in the Last Frontier. Energy projects are often multi-year endeavors requiring varied funding sources, but routine progress is being made.

Battle Creek Diversion In December 2017 the Alaska Energy Authority (AEA) Board announced it had authorized “the issuance, sale, and delivery of power revenue bonds of up to approximately $47 million for the construction of the West Fork Upper Battle Creek Diversion project.” This project would divert water from Battle Creek into Bradley Lake for the purpose of increasing energy output at the existing Bradley Lake hydroelectric plant by an average of 37,000 megawatt hours per year. Bradley Lake, which is owned by the state, currently has a capacity of 120 megawatts. Six electric utilities purchased shares in hydroelectric plant including Municipal Light & Power (ML&P), Chugach Electric Association, Homer Electric Association, Matanuska Electric Association, Seward Electric Utility, and Golden Valley Electric Association. Bradley Lake is located twenty-seven miles south of Homer on the Kenai Peninsula.

“The Battle Creek Diversion project is a perfect example of efficient, practical development of local renewable energy resources that will reduce ratepayer energy costs.”

—Russel Dick Board Chair, Alaska Energy Authority

The Battle Creek Diversion project will include construction of four miles of road, two miles of canal to carry the water to Bradley Lake, and a concrete diversion dam. The announced authorization followed approval of a financing package for the project by the Bradley Project Management Committee. The AEA release states, “In October, AEA received $40 million in New Clean Renewable Energy Bonds allocations from the IRS for the Battle Creek Diversion Project. Additionally, AEA will apply approximately $1.2 90

million of Qualified Energy Conservation Bond allocation received from the State of Alaska to the financing package. These interest subsidies will substantially reduce the net interest cost for the project, lowering the cost of energy from the power the project will produce when completed.” It’s estimated the diversion will cost $47 million and require three years of construction. In December, according to the release, contractor selection was already underway, anticipating construction might begin this spring. AEA Board Chair Russel Dick said, “The Battle Creek Diversion project is a perfect example of efficient, practical development of local renewable energy resources that will reduce ratepayer energy costs.”

Community Solar Chugach announced that, in response to member interest and the utility’s sustainable business philosophy, the company is proceeding with the Chugach Community Solar Project. The project will be installed east of Minnesota Drive and south of International Airport Road on Electron Road. It’s designed to include approximately 1,700 solar panels that will generate 600 megawatt hours per year. Chugach will offer shares of the project to retail members as a premium renewable energy product, with an option to pay upfront or subscribe monthly to the service. Buying shares will increase members’ bills slightly but not significantly, likely an easy cost for those invested in promoting alternative and renewable energy resources. Chugach has estimated the project will cost approximately $2 million. The company states, “Continued development is contingent upon receiving favorable financing, pre-subscribing 80 percent of the available shares, and receiving necessary approvals from the Regulatory Commission of Alaska.” The Acquisition Taking a different tactic to help reduce electric rates, next month Anchorage residents will vote on whether or not Chugach will have an opportunity to acquire ML&P. On January 23 Chugach gave a presentation to the Anchorage Assembly about the proposal, asserting substantial benefits to residents, businesses, and the municipality. Chugach’s offer to buy ML&P is approximately $882 million with an additional $142 million in payments in lieu of taxes (which will be placed under the tax cap to prevent any increases in property taxes as a result of the sale), totaling just over $1 billion. Of the $882 million, $542 million would pay off ML&P debt and the remainder will be placed in the Municipality of Anchorage’s (MOA) trust fund or pay down additional city debt,

according to the office of Anchorage Mayor Ethan Berkowitz. Chugach CEO Lee Thibert says, “Chugach has pledged there will be no job losses at either utility as a result of the sale. Chugach expects to adjust the size of its workforce through attrition,” and the company says it will continue to ensure its employees receive competitive wages. The utility has also promised that electric rates will not increase to pay for the acquisition. According to Thibert, “Chugach expects to utilize its historical funding sources which have included the capital markets and/or cooperative lenders” to finance the deal, citing the company’s twenty-five years of experience in capital markets and it’s strong credit ratings in the A range. Chugach’s presentation emphasized the potential of this unique opportunity to “combine two utilities that have adjacent service territories and natural synergies” and that “permanent cost savings will be realized through time and reflected in electric rates.” According to Thibert, “With low interest rates, the time to make this transaction is now. The hundreds of millions of dollars that would be saved from combining the two utilities and reducing duplication make it a winwin for the Anchorage community. Combining power utilities will streamline services and resources, saving hundreds of millions of dollars over time. The savings will lead to lower long-term electric rates for residents and businesses across the community.” The idea of merging ML&P and Chugach certainly isn’t new, having been passed around Anchorage for decades. In 2016, at the urging of the business community, the Anchorage Economic Development Corporation (AEDC) conceptualized a working group comprised of local business leaders concerned about paying high electric rates. Ten organizations that “brought with them significant experience and knowledge of the role and impacts electric utilities have in both the business sector and the economy at large” formed the group in March 2017. According to an April 2017 memo released by AEDC, “The AEDC Electric Utilities Working Group met in four sessions to better understand the current facts and circumstances of the electric utility marketplace in Anchorage.” The result was a recommendation from the group to once again revisit the option of merging ML&P and Chugach. According to Chugach, the electric entities already have a clear relationship: “The two utilities are already co-owners of the Southcentral Power Project and have ownership interests in the Beluga River gas field and the Eklutna Hydro Power Plant. Chugach and ML&P are also working together in power-

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“With low interest rates, the time to make this transaction is now. The hundreds of millions of dollars that would be saved from combining the two utilities and reducing duplication make it a win-win for the Anchorage community. Combining power utilities will streamline services and resources, saving hundreds of millions of dollars over time. The savings will lead to lower longterm electric rates for residents and businesses across the community.”

—Lee Thibert, CEO, Chugach Electric Association

pooling. Consolidation is the logical next step.” The working group expressed concern that there are inherent inefficiencies for the two companies as they operate separately that are increasing electric costs for the relatively small population of less than 300,000 they serve. In the April 2017 memo, the group stated the following as contributing to those inefficacies: a complex system of separate grids with separate system strategies that are difficult to align; duplicative infrastructure; separate service areas make it difficult to integrate new renewables and micro-grid sourced generation; and divergent ownership structures, organizational purposes, and strategies for generation and major infrastructure investments result in excess capacity and cost, among others. Addressing these and other concerns, in June 2017 the Anchorage Assembly passed a resolution asking ML&P and Chugach to look at ways to save ratepayers money. Thi-

bert says, “Those actions prompted the utilities to begin discussions about unification and how it can work for the entire Anchorage community. It has been widely recognized that having two electric utilities is not the most efficient way to serve customers in the Anchorage Bowl and that significant cost savings can be realized through consolidation for the benefit of the customer.”

Concerns and Uncertainties This is a significant proposal, not just in terms of money but in how it may affect the Anchorage community. Many government and business organizations have expressed their support of the acquisition, but there are details of the acquisition that have not been determined or have not been made public. One concern that’s been expressed to the Office of the Mayor is that this acquisition will form a monopoly. The office explains that “ML&P and Chugach currently serve separate and distinct areas and are already

regulated monopolies [and] the RCA will still oversee the regulation of the combined utility.” Additionally, Thibert explains, “Chugach is a not-for-profit, member-owned cooperative owned and controlled by the people who use its services. We have a seven-member board of directors elected by the members. Electric co-ops also pay dividends to members in the form of capital credits. If the two utilities combine, all current ML&P customers would be members of the Chugach electric co-op.” The amount of money proposed for the acquisition is likely accurate, according to the Mayor’s office, but may change slightly: “The overall value of the transaction should remain the same, but if the proposed sale is approved by voters in April, due diligence may adjust the final numbers.” Exactly how duplicative infrastructure and facilities will be reduced has not yet been determined, according to Chugach.

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Susitna-Watana Hydroelectric Project Final Update

hile other projects move forward, the Susitna-Watana Hydroelectric project has officially ground to a halt. The “Susitna-Watana Hydro Report to the Legislature 2017” was issued in mid-January and begins with the succinct “All work on the SusitnaWatana Hydroelectric Project had come to a full stop by the end of calendar year 2017.” Janet Reiser, Alaska Energy Authority (AEA) executive director, explained that “AEA closed out the project in a way that preserved the value of the state’s investments and maintained the public value of the data collected through careful, thorough archiving.” If in the future the state determines to relaunch the project, a Study Plan Determination (SPD) issued by the Federal Energy Regulatory Commission has already been received that provides clarity on what the state would need to proceed. The SPD also “validated the quality and integrity of work completed to date.” The introduction to the report emphasizes that while the project will not move forward, the data gathered during the planning phases has immense value and includes information about the Susitna basin, local indigenous cultures, fisheries, wildlife, and landscape. The information, having been catalogued and stored online, is available to the public. Licensing efforts for the Susitna-Watana Hydroelectric project began in 2011, and it was estimated in 2014 dollars that it would cost approximately $5.7 billion to construct. In June 2017, Governor Bill Walker issued a directive ordering the project be shut down in response to the state’s fiscal crisis. Expenditures to date and encumbered and committed funds are about $192 million. It’s estimated the unobligated balance of funds after June 30, 2018, will be approximately $1.9 million. Reiser concluded, “Alaska Energy Authority is proud of the work done to date to advance the Susitna-Watana Hydroelectric Project. This effort yielded significant benefit in terms of the volume of knowledge produced and shared and in terms of better understanding the potential of this resource to provide stable, low-cost power to Alaskans over the 100-year life of the project should it ever be restarted.” R

“We know there are significant cost savings through combining infrastructure and resources, but those final details will be worked out if voters authorize a sale in April,” the company states. The timeline of the due diligence process leading up to the final deal is estimated to take several months, and “a transition plan combining the two utilities would likely play out over several years.” The company does say that common infrastructure such as headquarters buildings and dispatch centers will be streamlined, though the details of that are not set. R Tasha Anderson is the Associate Editor for Alaska Business. www.akbizmag.com

March 2018 | Alaska Business

SPECIAL SECTION

Mining

Mining Remains a Cornerstone of Alaskaâ&#x20AC;&#x2122;s Economy Entire nation benefits from responsible resource development By Marleanna Hall

laska has a long mining history and can attribute much of its infrastructure to early explorers and miners. However, it comes as no surprise Alaskaâ&#x20AC;&#x2122;s mining industry continues to face harsh attacks from Outside interests, while Alaskans continue to applaud the success stories. Alaska contains strategic minerals important to national security and the economy. The continued development and production of these resources by the mining industry is vitally important. 94

Reframing the Conversation Mining in Alaska is, and has been for more than 125 years, an important part of our economy. Earlier mining was not regulated like it is today, and unfortunately, anti-development groups use this important aspect of history as a tool to stop projects, or at a minimum, introduce significant uncertainty and delay. What these anti-development groups fail to recognize is that in Alaska we take environmental stewardship very seriously. Projects in Alaska must meet some of the most stringent permitting standards in the world. Often people donâ&#x20AC;&#x2122;t recognize the importance of the mined resources Alaska produces while protecting the environment and providing for everyday way of life. Zinc, for example, is mined

in Northwest Alaska. It is used to galvanize steel for important community projects such as infrastructure and is used in the vehicles we drive. Silver, currently mined in Southeast Alaska, is used in everything from medical devices to currency. Gold can be found responsibly mined all across Alaska, but it is large scale developed in the Interior and Southeast and is vital for improving technology from a cell phone to a car. The resource deposits that are currently being explored around Alaska contain minerals and rare earth elements including copper, gold, graphite, and more. Each of these resources could be used to build power plants, windmills, fishing boats, and even tricycles, all improving the Alaskan, and American, way of life.

Alaska Business | March 2018 www.akbizmag.com

MINING SPECIAL SECTION | INDUSTRY OUTLOOK

Large scale metal mining in Alaska is a young industry, and all five of Alaska’s large metals mines were permitted since the passage of the National Environmental Protection Act and the Clean Water Act.

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Marleanna Hall Executive Director Resource Development Council for Alaska, Inc.

And fortunately, technology is improving the way we mine these materials. For the reader who may be using a smartphone or tablet, it took more than forty mined minerals, including copper, silver, gold, and tin, to make that technology possible. Everyday life benefits, such as recreation, are improved by mining. Whether you’re harnessing the power of a sled dog team to cross vast areas of Alaska or using an iron dog to get from place to place, it is mined materials that make all of those activities possible. If you have a road bicycle, fat bike, or dirt bike, it came from mined materials. Large scale metal mining in Alaska is a young industry, and all five of Alaska’s large metals mines were permitted since the passage of the National Environmental Protection Act and the Clean Water Act. In addition to Alaska’s metal mines, the state is home to significant coal resources. Reliable electric generation powering much of the Interior is thanks to coal from a family-owned mine that has been around for more than seventy-five years. Alaska has several more projects in either the exploration or permitting phase. Each of these is subject to a rigorous permitting process. www.akbizmag.com

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It is fundamental for the state to have a rigorous permitting process, one that is stable. It is important not only for predictability but also to protect the environment, including communities, subsistence, and wildlife. A fair permitting process will help strengthen Alaska’s economy, whether in mining, oil and gas, forestry, or any other permit-reliant industry.

Educating Youth on the Importance of Mined Materials Identifying ways to educate youth is vital, and it starts with a simple conversation: it’s not an either/or option, it’s all of the above. Responsible resource development can and does exist. We can all work together toward a common good. Teaching youngsters that mined materials are important to everyday life and are used in everything from safety equipment and electricity to household goods such as toothpaste is imperative. The daily tools Americans use including cars, cell phones, and faucets are depended on by all ages from Millennials to Baby Boomers and all are produced from mining. These mined materials are going to come from somewhere, why not here? As the cornerstone of Alaska’s remote infrastructure, mining can continue to help meet some of Alaska’s basic infrastructure needs. From indoor plumbing to galvanized guardrail, we can improve the infrastructure around our state, particularly in rural Alaska. We have the opportunity to increase Alaskan prosperity through the responsible development of our state’s vast mineral resources. Alaska, if it were its own country, would rank in the top ten for coal, copper, lead, gold, zinc, and silver. Alaska’s minerals, much like the seafood it exports, are highly valuable and could be marketable around the world. The state also contains many Rare Earth Elements, a much-needed resource for the nation. From rural to urban Alaska, the financial benefits of mining are seen from family wage jobs to dividends received by Alaska Native shareholders. Mining pays taxes at every level, including state and local, and is sometimes the largest taxpayer. Even one new large mine would be significantly beneficial to Alaska. To sustain our economy, Alaska needs to encourage new investment, jobs, and production across all resource sectors, including mining. With more mines, there is the potential for more jobs, increased state revenue, more royalties to Native corporations, and more community investments. Mining in Alaska is more than promising. It is a part of our rich history and we are excited to be part of it, because in Alaska, we do it right. R Marleanna Hall is the Executive Director for the Resource Development Council for Alaska, Inc., a membership-funded organization comprised of individuals and companies from Alaska’s oil and gas, mining, timber, fishing, forestry, and tourism industries, as well as all twelve land-owning Alaska Native Corporations. For more information visit akrdc.org.

Alaska Business | March 2018 www.akbizmag.com

A Culture of

Commitment

Northwest Alaska’s Iñupiaq were the first people to manage the responsible development of NANA’s lands – 10,000 years later we’re still doing that as active partners, participants and stewards. NANA stands as a model of consensus, cooperation and mutual respect between a mining company and indigenous people.

Together, let’s develop Alaska’s potential.

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SPECIAL SECTION

Mining

The Alaska assets of Trilogy Metals, known as the Upper Kobuk Mineral Projects, include the Arctic and Bornite deposits; above a driller performs work on a rig in the Ambler Mining District.

Ongoing Activity at Arctic and Bornite Trilogy Metals advances its major Alaska deposits By Tasha Anderson 98

ast year held several positive developments for Trilogy Metals (formerly NovaCopper), which has holdings and conducts mineral exploration in the Ambler Mining District. In April 2017 Trilogy Metals announced it signed an agreement with South32 Limited, which invest in, mines, and produces com-

modities. The agreement granted South32 an option to form a 50/50 joint venture in regard to Trilogy Metal’s Alaska assets, listed as “the Upper Kobuk Mineral Projects, which includes the Arctic and Bornite Projects; the Exploration and Option to Lease Agreement with NANA Regional Corporation, Inc.; and the remainder of Trilogy’s state mining claims

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along the 100km volcanogenic massive sulphide belt,” in the April 2017 Trilogy release. To keep this joint venture option in good standing, South32 must contribute a minimum of $10 million each year for a maximum of three years. South32 can choose at any time to enter into the 50/50 joint venture with a minimum contribution of $150 million. In 2017 Trilogy used the first round $10 million investment to conduct exploration at Bornite, a high-grade copper deposit (in April 2016 it was estimated to hold 5.5 billion pounds of copper inferred resources at a grade of 2.26 percent Cu and 913 million pounds of copper indicated resource at a grade of 1.02 percent Cu), launching their exploration program in June. The company contracted with Tuuq Drilling (a NANA subsidiary) and Major Drilling International to execute the planned nine-hole, 12,000 meter exploration www.akbizmag.com

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MINING SPECIAL SECTION | TRILOGY METALS

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MINING SPECIAL SECTION | TRILOGY METALS

Andy West, exploration manager for Trilogy Metals, looks at an outcrop. Image courtesy Trilogy Metals Inc.

drilling program. The drilling contractors used three diamond core rigs capable of drilling to depths of 1,400 meters. Last year’s exploration at Bornite was “focused on drilling the extensions of mineralization last drilled by [Trilogy] in 2013,” the company stated.

In September the company announced initial results from the first three holes (totaling 3,083 meters) at Bornite, saying “the initial three drill holes show thick and continuous intervals of copper mineralization and represent up to 300 meter off-sets from the

company’s last round of drill holes completed in 2013, which shows that the Bornite mineralized system continues to significantly expand.” Specifically, at a cutoff grade of 0.5 percent copper, hole RC17-234 intersected three mineralized intervals totaling 83.3 me-

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Image courtesy Trilogy Metals Inc.

Trilogy Metals Environmental Manager Cal Craig monitors water flows in the field.

percent copper; and RC17-240 intersected one mineralized interval totaling 25.1 meters averaging 0.96 percent copper. Van Nieuwenhuyse said that with this completed program, “We have essentially doubled the size of the mineralized footprint with an overall Bornite system now measuring 1,500 meters by 2,500 meters defined by a 50 meter x % copper—that is 50 meters averaging at least 1 percent copper or better. In particular, the grade x thickness map suggests northwest and northwest oriented controls on higher

grade mineralization. Structural studies are ongoing with the voluminous amount of 3D structural data collected over the course of the summer drill program.” He also gave additional comment on the cobalt mineralization, saying the company will conduct testing to determine if the cobalt observed at the deposit can be concentrated into a saleable product. “If it is determined that it can, then cobalt will be added to the resource base as a potentially valuable metal which could enhance the value of Bornite.”

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MINING SPECIAL SECTION | TRILOGY METALS

ters averaging 1.1 percent copper; hole RC17235W intersected two mineralized intervals totaling 33 meters averaging 0.9 percent copper; and hole RC17-236 intersected two mineralized intervals totaling 116.4 meters averaging 1.06 percent copper. Trilogy Metals President and CEO Rick Van Nieuwenhuyse explained that in addition to copper, the company saw “significant cobalt mineralization” and that “more geochemical and metallurgical work is planned for the cobalt.” The company announced additional results of the 2017 summer exploration program in early December. While all nine anticipated holes were drilled, two (RC17-241 and RC17-242) were halted before reaching their target depth because of inclement weather, meaning seven were drilled to completion. The two stopped holes were cemented in preparation for re-entry during the company’s 2018 drilling program. The four completed holes comprised 4,321 meters and were 300 to 400 meter offsets from the initial three holes of the season. The release states these four “continue to show significant intervals of high-grade copper. This year’s drilling is also showing strong northwest and northeast mineralization not previously recognized.” For those four holes, at a cutoff grade of 0.5 percent copper, RC17-237 intersected two mineralized intervals totaling 30.5 meters averaging 0.73 percent copper; RC17-238W intersected four mineralized intervals totaling 32.4 meters averaging 1.03 percent copper; RC17-239 intersected three mineralized intervals totaling 50.6 meters averaging 1.36

MINING SPECIAL SECTION | TRILOGY METALS

Image courtesy of Triology Metals

The Bornite Camp, located in the Ambler Mining District and operated by Trilogy Metals.

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OUR VALUES REMAIN THE SAME

During the past 75 years, we’ve grown from a small mining operation to one of Alaska’s leading businesses. Yet with all our progress, some things haven’t changed. Usibelli Coal Mine remains a family-owned and -operated company. We are still committed to producing affordable energy, while protecting the safety of our workers and the quality of our environment. Our future looks bright, thanks to the legacy we’ve been building since 1943.

www.usibelli.com 102

Shortly after in December the company was able to announce that South32 had committed to a second year of funding, providing $10 million for the 2018 program and budget for Bornite, which will include in-fill and offset drilling “to better define and expand the high grade copper resources.” Van Nieuwenhuyse stated in December that one component of the 2018 program at Bornite will be a seismic program, to be completed this spring before the ground thaws. Just before the end of the year, Trilogy Metals announced that South32 had become a new “significant shareholder,” owning approximately 6.5 million common shares or about 6 percent of the outstanding common shares. Van Nieuwenhuyse increases his shareholdings as well by approximately 1.7 million shares; the South32 and Van Nieuwenhuyse purchased their shares from a previous shareholder. While much of the company’s exploration effort took place at Bornite, work also progressed at the Arctic deposit, a polymetallic volcanogenic massive sulphide deposit containing copper, zinc, lead, gold, and silver. According to Trilogy Metals, “Arctic is one of the highest-grade, open-pittable copper deposits known in the world with an average grade of 5 percent copper equivalent.” According to the company’s Year End Results Report published in February, the 2017 summer program at the Arctic deposit geared toward gathering data for a pre-feasibility study was conducted in July and included 274 meters of geotechnical drilling and 26 test pits for the purpose of determining site facility locations and mine design. Other summer activity at the deposit for the study included baseline data collection on aquatic and avian resources, water quality, hydrology, and meteorology. “The water quality program was expanded in 2017 to include additional sample locations and increased sample frequency,” the company stated. Van Nieuwenhuyse said, “We expect the pre-feasibility study will demonstrate that Arctic is one of the highest grade, open-pittable copper deposits in the world. And it is located in a mining friendly jurisdiction in the United States where both our shareholders and stakeholders will be able to reap the benefits of our efforts.” In September, Trilogy Metals completed work at Arctic including five holes and 785.2 meters of diamond drilling with the goal of collecting two tons of material for bulk ore sorting studies; in February the bulk ore had been crushed and was being transported to begin the next phase of the ore study. While Trilogy Metals moves steadily forward with their Upper Kobuk Mineral Projects, progress is also being made on Ambler Access industrial road, an ongoing project owned and managed by the Alaska Industrial Development and Export Authority (AIDEA) that wrapped scoping comments on its EIS at the end of January. The EIS for the road is expected to be fully complete in December 2019 with an anticipated record of decision by January 2020. R

Alaska Business | March 2018 www.akbizmag.com

SPECIAL SECTION

Mining

Pebble Project Moves Forward How far forward debatable By Tom Anderson

ebble Mine, the burgeoning copper and gold project in the Bristol Bay region of Southwest Alaska, has for the first time in years taken steps forward, which may be attributed in part to the current federal political climate that is generally in favor of natural resource development. But politics are just one factor; the highly polarizing Pebble prospect is the largest undeveloped copper ore body discovered to date—not just in Alaska but globally—and such significant potential can create its own forward momentum. Cominco Alaska Exploration (which subsequently became Teck Resources) staked the initial claim at the Pebble Mine site in 1987. Pebble ownership has transferred between several companies over the past thirty years. In mid-December 2017, current owner Northern Dynasty Minerals entered into a framework agreement with First Quantum Minerals targeting an ownership position of the Pebble Limited Partnership (PLP) through a $37.5 million contribution to the project. Northern Dynasty Minerals is a mineral exploration and development company based in Vancouver and led by President and CEO Ronald Thiessen; its principal asset through PLP is a contiguous block of 2,402 mineral claims that include the Pebble deposit. New partner First Quantum Minerals, also headquartered in Vancouver, is a metals and mining company operating seven mines and one copper smelter in six nations worldwide. The company primarily produces copper, gold, nickel, and zinc.

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In a December media release, PLP announced the company would initiate the permitting and review process “with a much smaller and more environmentally sensitive plan for a mine,” adding that the influx of financial support from partner First Quantum Minerals is a critical component of the business development process. PLP CEO Tom Collier and his team emphasized that the Pebble Project will benefit Alaskans and build sustainable communities in this pristine region while balancing protection of fish, wildlife, and ecosystems affected by geological alterations. First Quantum Minerals Chairman and CEO Philip Pascall said in a release: “The option agreement is an important opportunity to carry out a detailed assessment of the Pebble Project which is widely acknowledged to be one of the outstanding unmined copper projects in the world.” At present the Pebble deposit is estimated to contain 26 million tons of copper, 70 million ounces of gold, and 1.5 million tons of molybdenum. Molybdenum is an alloying agent used in stainless and structural steels because it is resistant to corrosion and able to withstand high temperatures. It is also used to make certain electrical filaments, as well as missile and aircraft parts.

An Updated Plan for Pebble In early January, USACE published a notification of acceptance of PLP’s permit application, submitted in late December. PLP responded with a news release outlining many aspects of the re-envisioned Pebble Mine, including a smaller environmental footprint that is less than half the size of the previously proposed project; consolidation of most major site infrastructure into a single draining; a more conservative tailings storage facility; inclusion of flatter slope angles; enhanced buttresses and improved safety; no perma-

nent waste rock piles; and no cyanide use. “These are very substantial improvements that we have made over the past few years in response to issues and concerns raised by project stakeholders,” Collier said in the release, stating the company’s belief that these changes will increase support for the project. “The important part about the permitting process is the opportunity to have all of our work and assumptions objectively vetted by the regulatory agencies,” says Mike Heatwole, PLP vice president of public affairs. “Getting to construction means successfully getting through permitting. Once we secure a permit, we move to construction—a multi-year, multi-billion-dollar undertaking. We have to construct mine facilities, a transportation corridor, an ice-breaking ferry, a power plant, a pipeline, and a port. We’ll put several thousand people to work in this window,” he adds. Jobs are one of the many potential benefits to the State of Alaska, according to the project’s owners because this development “could generate hundreds of millions in annual eco-

A Pebble Limited Parntership drill crew performs maintenance and repair on an old drill hole as part of the company’s 2017 field work. Image courtesy of Pebble Limited Partnership/by Orzel Photoraphy

Alaska Business | March 2018 www.akbizmag.com

Image courtesy of Pebble Limited Partnership/by Orzel Photography

nomic activity for Alaska as well as generating revenues for state and local governments. It will also create high-wage, year-round jobs and training opportunities in Southwest Alaska, and supply service contracts for local businesses,” according to PLP. Heatwole says that following four years of construction, the intent is to operate the mine for up to twenty years, which includes fourteen years of conventional drill-blastshovel mining technology operations followed by six years of milling from a lowgrade ore stockpile. A total of 1.2 billion tons of material will be mined. The mine site will include an open pit, tailings storage facility, low-grade ore stockpile, overburden stockpiles, quarry sites, water management ponds, milling and processing facilities, and supporting infrastructure including a power plant, water treatment facilities, and camp and storage facilities. PLP has proposed an eighty-three-mile transportation corridor from the mine site

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to a port site on the west side of Cook Inlet. “The proposed road corridor has been designed to minimize impact on wetlands, minimize stream crossings, and avoid areas of known subsistence and recreational use,” according to the company. The corridor will include a thirty-mile, thirty-foot wide private gravel road from the south shore of Iliamna Lake to the port site at Amakdedori (a permanent, year-round port on the west side of Cook Inlet constructed for this project), with spur roads connecting to the nearby villages of Iliamna, Newhalen, and Kokhanok. Transporting concentrate, equipment, and supplies will require up to thirty-five round trips by truck daily, as well as one round trip by ferry. The Pebble project information release says a “230 megawatt power plant utilizing a high-efficiency combustion turbine or reciprocating engine generators operating in a combined-cycle configuration will be built at

Pebble,” and the plant’s daily energy release will heat buildings on the property as well as “supply process heat to water treatment plants.” Heatwole says the mine site power plants, along with smaller generation facilities, will be supplied by a 188-mile pipeline connecting with existing natural gas supplies near Happy Valley on the Kenai Peninsula.

Industry Perspective Resource Development Council (RDC) of Alaska Executive Director Marleanna Hall says the companies’ announcement that the Pebble Project has entered the permitting process is positive news for the investment future in Alaska, not only for mining but for the communities that will benefit from potential development. “RDC firmly believes that every project, no matter its size or location, must be allowed to

March 2018 | Alaska Business

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MINING SPECIAL SECTION | PEBBLE UPDATE

The supply depot at the Pebble site temporarily stores materials on pallets that are necessary for onsite field work.

MINING SPECIAL SECTION | PEBBLE UPDATE

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go through the permitting process,” she says. “The opportunities a project like Pebble bring include benefits to the state, the mining support sector, [and] family-owned businesses, local communities, transportation sector, and so much more.” Hall adds that it’s important for Alaskans to remember that this state has some of the most rigorous permitting and regulatory practices in the world. “Allowing Pebble to go through the process is good for attracting the future investment Alaska needs to grow its economy and improve the quality of life for Alaskans, especially those living in Southwest Alaska,” she says. “It is positive that Pebble has started the permitting and review process so their actual plans can be carefully evaluated,” says Karen Matthias, the executive director of the Council of Alaska Producers, a statewide, nonprofit trade association representing Alaska’s large metal mining industry with the mission “to help Alaskans not only gain a better understanding of what mining contributes to our state’s economy but also how Alaska’s modern mines operate in an environmentally safe and responsible manner,” according to the association’s website. Matthias says the Council of Alaska Producers strongly believes that development of the state’s natural resources should be accomplished through a permitting and regulatory framework that is rigorous, science based, transparent, and predictable. She adds that this translates to allowing permits to be filed, evaluating a specific plan of operation, providing opportunities for public input and involvement, measuring impacts, and assessing options for mitigation and protection. “Mining can play an increasing and valuable role in Alaska’s economy so a fair and objective regulatory process is equally important.”

Objections and Obstacles Facing Pebble While PLP initiating the permitting process is a definitive step forward for the Pebble Project, it remains highly debatable whether or not the project will ever be constructed. In late January, the Environmental Protection Agency (EPA) announced that it is suspending the process to withdraw proposed restrictions that prevented the Pebble Project from moving forward; those restrictions hindering Pebble are being left in place while the EPA “receives more information on the potential mine’s impact on the region’s worldclass fisheries and natural resources,” the EPA announced. EPA Administrator Scott Pruitt said, “Based on that review, it is my judgment at this time that any mining projects in the region likely pose a risk to the abundant natural resources that exist there. Until we know the full extent of that risk, those natural resources and world-class fisheries deserve the utmost protection.” While the EPA’s news release specifies that this change in attitude in no way “deters or derails” the permit application process for PLP and the company will “continue to enjoy the protection of due

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MINING SPECIAL SECTION | PEBBLE UPDATE

process and the right to proceed,” it does continue to say, “However, their permit application must clear a high bar, because EPA believes the risk to Bristol Bay may be unacceptable.” This is a welcome move on the behalf of the federal agency for the mine’s opponents. The United Tribes of Bristol Bay, an organization whose mission is to “protect the lands and waters that support the traditional way of life of the indigenous people of Bristol Bay by advocating against unsustainable largescale hard rock mines like the Pebble Project,” issued its own release celebrating this development from the EPA. United Tribes of Bristol Bay President Robert Heyano said, “[This] announcement marks another milestone for Bristol Bay. It shows us that the power of local people, speaking together in a united voice, can still be heard above the noise of today’s partisan politics…The fight to protect our watershed from Pebble is far from finished. But, today’s decision, and all those who worked so tirelessly to get us here, will be celebrated.” Governor Bill Walker, Speaker of the Alaska House of Representatives Bryce Edgmon, CEO of Bristol Bay Economic Development Corporation Norm Van Vactor, President and CEO of Bristol Bay Native Corporation Jason Metrokin, President and CEO of Bristol Bay Native Association Ralph Andersen, and Interim Executive Director for Nunamta Aulukestai Myrtice Evalt praised the EPA for taking this step to protect one of Alaska’s richest fisheries. Van Vactor said, “Alaskans know the Pebble Mine is the wrong mine in the wrong place because they trust independent science and have spent years publicly debating its cost and benefits. We cannot put at risk the thousands of American fishing jobs supported by Bristol Bay’s waters by allowing a foreign-owned company to build a massive mine at the bay’s headwaters.” Many Alaskans fall to one side or the other of the Pebble Project conversation, either strongly supporting or just as strongly opposing the mine’s development. As the permitting process inches forward, all those with a stake in the project will benefit from additional studies, more information, and clarity. US Senator Lisa Murkowski has said of the project’s potential, “Administrator Pruitt is taking a balanced approach by allowing Pebble to enter the permitting process, while noting EPA’s duty to fully protect the region’s world-class fisheries. With the company now having filed its application, I expect that a fair, rigorous, and transparent process will soon begin so that Alaskans can understand the impacts and risks, as well as the potential benefits associated with this project.” Murkowski previously worked with the EPA to extend the comment period on the proposed withdrawal of restrictions by ninety days, ensuring all Alaska stakeholders had the opportunity to weigh in. R

HEALTHCARE

Image courtesy of Senior Citizens of Kodiak

The Island Cove Day Program, run by the Senior Citizens of Kodiak.

Alaska Ill Prepared for Growing Elderly Population State faces shortage of senior services programs, funding, healthcare workers

By Judy Mottl

laskans close to retirement are in good company as the state’s senior population is experiencing the fastest growth rate of any state in the nation. As of 2015, for example, there were 120,444 Alaska residents age sixty and older, according to the Alaska Department of Labor, with an average annual growth rate of 5 percent for those sixty-five years and older. By 2027 the number of seniors age sixty or older is expected to hit 175,000 or roughly one-quarter of the state’s total population. But while the senior demographic is growing, the number of senior services and pro108

grams is not keeping pace for a slew of reasons: stagnant funding, Alaska’s economic climate, and decreasing senior services occupations. The shortage of workers to help run senior programs and provide services is partially related to the state’s declining population. As of mid-2017, Alaska’s population was 737,080, a dip from a year prior when the population was 739,709, according to an Alaska Department of Labor and Workforce Development report. In a nutshell, Alaska’s fastest growing population—the senior citizen—is heading into retirement at a time when services, programs, housing, and healthcare support for the aging are facing great challenges—espe-

cially for elders in need of living assistance and those who live in remote regions.

State Services, Government Support Funding for senior services and programs is a mixed bag of state taxes, grant funding, and money from programs such as the federal Older Americans Act. State grant-funded programs run the gamut from adult day care services to case management, meals, transportation, and disease prevention services. There is also family caregiver support, information, and training regarding health issues such as Alzheimer’s, independent living services, housing accommodations, and other services,

Alaska Business | March 2018 www.akbizmag.com

Image courtesy of Alzheimer’s Resource

Art Links, a program run by Alzheimer’s Resource of Alaska, promotes engagement for persons living with dementia and other at-risk seniors through artistic expression.

according to Alaska’s Department of Health and Social Services (DHSS). An Alaskan resident must be sixty years or older to receive services. Those under sixty dealing with a severe disability may receive an exemption to obtain needed services. State services are provided on a sliding fee scale dependent upon income, according to DHSS. But while the range of services and programs is long, money is falling short. “Funding for home and community based services for seniors has remained relatively flat for the past decade while the senior population has increased,” says Lisa Morley, manager in the DHSS Grants Unit. But money is just one challenge facing the senior population. “It is very difficult to provide senior services statewide due to distance and workforce capability. Services are spare or nonexistent in many rural areas,” Morley says. In fact, in terms of challenges, Morley views the shortage of qualified senior services professionals as the biggest obstacle to seniors receiving needed services, followed by “a lack of adequate housing for seniors, cultural considerations, and funding.”

Senior Services, Program in Play Despite the fact that financial support is stagnant and it’s getting harder to recruit and hire qualified workers, Alaska is still home to dozens and dozens of senior service programs throughout the state, from urban areas including Juneau and Anchorage to outlying remote communities. One such program is Southeast Senior Services (SSS) in Juneau. Founded in 1974, SSS initially opened senior centers in Angoon, Juneau, Ketchikan, and Sitka and is now the largest senior services provider in Southeast Alaska, serving more than 2,500 individuals each year. Today the program boasts twelve senior centers serving fifteen Southeast communities: Angoon, Craig/Klawock, Haines/Klukwan, Hoonah, Juneau/Douglas, Kake, Ketchikan/ Saxman, Sitka, Skagway, Wrangell, and Yakutat. Each of these communities is only accessible by boat or plane, making it challenging to 110

integrate new senior services programs. SSS centers offer congregate and home-delivered meals and transportation, along with various support services needed by community residents. For example, in Ketchikan, Sitka, and Juneau, paratransit services for persons with disabilities has grown out of the senior center programs, according to Marianne Mills, SSS program director. “Over the years, SSS has steadily widened its focus to include special programs designed to help older adults remain in their homes despite multiple challenges or disabilities,” Mills explains. “SSS has since developed case management services in Juneau, Ketchikan, and outlying communities, in-home counseling in Juneau, and family caregiver support programs throughout the region,” she says. The program, which is a division of Catholic Community Service, is viewed as a leader in Alaska for developing the services designed to meet the needs of the state’s growing senior population. “SSS focuses on industry best practices and evidence-based interventions which have been proven to help older adults maintain their health, safety, and independence living,” Mills says, noting that in 2004 SSS started Juneau’s Gatekeeper Program, a watchdog system for identifying isolated, at-risk, older adults and linking them to vital services. “In 2013, we began offering Tai Chi for Fall Prevention for seniors. Our primary goal through the years has been to promote the health, safety, and quality of life of older Alaskans, enabling seniors to live in their own homes and communities of choice for as long as possible,” says Mills.

Aging, Alaska, and Alzheimer’s Back in 1985, the center’s “The Bridge” adult day program began offering therapeutic services to seniors coping with Alzheimer’s disease, recovering from strokes, and dealing with other debilitating illnesses, as well as providing respite for their caregivers. Services for those coping with Alzheimer’s have increased as a response to the growing

numbers of seniors with the disease. Alaska has the unfortunate distinction of being home to the fastest growth rate of Alzheimer’s patients in the nation, according to the Alzheimer’s Resource of Alaska program. It makes sense that Alaska is seeing growth in Alzheimer’s patients since the number one risk factor for developing Alzheimer’s is advanced age. According to SSS, one in nine people aged sixty-five or older develop the disease, and the number spikes to one in three for those eighty-five years or older. Alaskans with Alzheimer’s disease and related dementia is projected to increase from 9,000 in 2018 to more than 14,000 by the year 2025. A primary service organization for those with Alzheimer’s disease is the state’s Home and Community Based Services (HCBS), which offers health services, personal care assistance, adult day services, transportation to doctors, and programs such as Meals on Wheels. The HCBS, says Karl Garber, executive director of Alzheimer’s Resource of Alaska, provides “substantial value” for seniors and is helping prevent or delay high cost hospitalization and nursing home stays while improving quality of life for seniors. But HCBS, he notes, like every other senior-focused support initiative, is facing financial challenges. “While our HCBS system is strong and adds real value, it is a challenge to find funding to serve our rapidly growing senior population’s needs,” says Garber. HCBS has been in existence for thirty-four years and provides support to those affected by Alzheimer’s, related dementia, and other disabilities to ensure a better quality of life for Alaska’s elderly population. In 2017 the program provided service in eighty Alaska communities for more than 3,500 people through its offices in Anchorage, Fairbanks, Juneau, and the Mat-Su Valley. Funding challenges also play a role in keeping seniors from attaining affordable healthcare, says Garber. “The cost of healthcare is high in Alaska. Additionally, many physicians do not accept Medicare. The costs associated with travel to remote areas are significant, and even in those areas where broadband services might bring services to seniors, their technological proficiency cannot be reasonably presumed,” he explains. Along with caring for the patients the HCBS program also provides services to caretakers and family members of those suffering from Alzheimer’s. “We provide our services to individuals concerned about memory loss, those with known dementia symptoms, and family care partners and professional care givers, whether in the home, assisted living, or nursing homes,” he says, noting family care partners provide more than 80 percent of the care for their loved ones, friends, and neighbors with Alzheimer’s who are living in at home. The organization’s education and support services include confidential consultations, coaching, and classes on caregiving and facilitated support groups. These services are free for individuals and their family care partners. “Care coordination connects people who have disabilities to the vast array of services

Alaska Business | March 2018 www.akbizmag.com

they need to maximize their independence and live safely in the home of their choice. Our staff has specialized knowledge and experience,” says Garber. “Alzheimer’s is a challenging disease to live with; however, with the right supports people can have joy and purpose in their lives and continue to live safely in their homes for as long as possible.”

Challenges in Remote Regions While most if not all of Alaska’s senior services programs grapple with stagnant funding and a shortage of workers, those most affected are the seniors and their families living in far-flung regions statewide. Some remote areas lack basic senior services are due to transportation challenges since many of these locations are accessible only by plane or boat. Kodiak Island is a good example of this, but it has one big advantage—the Senior Citizens of Kodiak (SCOK). Launched in 1973, the program has been providing services to seniors and families for almost forty-five years. Despite its decades of work, there still are not enough services for seniors in the bush areas, says Pat Branson, SCOK executive director. “It is difficult to keep up with needed services with the state and local municipal budgets. Some funding for meals and transportation [comes] through the Older Americans Act. Other funds for seniors in home and adult day services are funded directly from the general fund at the state level, and though grants for these two services has been maintained, with the increased demand for services and cost for

services those services become more limited,” says Branson. “More home and community-based services are needed to keep seniors in their own homes and communities,” she adds, noting that transportation “has service gaps almost everywhere in the state.” SCOK provides congregate meals, homedelivered meals seven days a week, an adult day program seven days a week, respite, and lifeline and information and referrals. It also offers residents an equipment loan closet and chore services. It is the lead agency for the Kodiak Area Transit System, which serves the public and nonprofits, says Branson. In addition, SCOK is the first and only senior center in Alaska to be nationally accredited through the National Council on Aging & National Institute of Senior Centers and is in the process of earning its fourth national accreditation this spring. “The cost of doing business increases each day but the funding is stable, so we are losing out on what agencies can do and provide,” says Branson, reiterating the state and many local municipalities are in a budget crisis. “How to pay for the needed increased services with increased senior population and their living longer is the biggest challenge. It’s a continual stretch. For Kodiak Island, we are remote and the cost of doing business here is more than the more urban areas—not just at the Senior Citizens of Kodiak but also healthcare, food, et cetera—and the workforce issue is always present,” she says.

The Chugiak-Eagle River Senior Center, which has been operating for forty-plus years, is facing the same challenges as the SCOK, and one of its most pressing issues for serving seniors is access to healthcare and healthcare financial support. “As you may imagine we have fewer doctors per capita than larger cities,” says Linda Hendrickson, executive director, noting that there are even fewer doctors willing to take Medicare, let alone Medicaid. “So, finding a doctor is very challenging to most seniors,” she says. The Chugiak-Eagle River Senior Center provides eighty-three apartments for seniors and twenty-one assisted living apartments, as well as Meals on Wheels and adult day services. Residents have access to a Native hospital and health services which serves a large portion of that population, she says, with no access to a nursing home environment. Seniors who need nursing home-type services are taken care of in small assisted living homes. One reason there is a shortage of medical care providers is that it’s difficult for medical practitioners to stay in business due to the cost of service and remuneration received. “Medicare and Medicaid have not gone up in Alaska for five years. Most of the costs have all gone up but providers are expected to not only take less than half but do it with no increase,” Hendrickson concludes. R Judy Mottl writes about important issues country-wide with an affinity for Alaska.

Local Loving, In-Home Care for Seniors in Alaska

Keeping the Comforts of Home We offer a full range of services Whether it’s for a short 6 hour respite, coming home from the hospital, a vacation or for long term companionship. You can count on them to be there for you. Comfort Keepers helps make their clients lives brighter, safer and more enjoyable. Keeping the Comforts of Home.

907.334.3000 anchorage-401.comfortkeepers.com www.akbizmag.com

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THE GREAT INDOORS

EAT

SHOP

PLAY

STAY 

Cabins

amping in a cabin is a fantastic lodging option, offering more privacy than a lodge or hotel, less work than putting up a tent, and a front row seat to Alaska’s stunning wilderness. Several state and federal agencies maintain and rent cabins for public use at a range of prices—some of them free. Alaska.org points out that there are more than 300 public use cabins statewide, generally with similar accommodations: a heating stove, bunks or sleeping platforms, table and chairs, and an outhouse. Below are just a few private cabin rental options. Denali Cabins offers forty-six cedar cabins for rental just eight miles south of the entrance to Denali National Park from late May to mid-September. The cabins are heated and feature private baths and blackout curtains so those who aren’t acclimated to the midnight sun can rest well. alaskacollection.com/lodging/denali-cabins/ Sheep Mountain Lodge offers classic and premier cabin options just minutes away from Matanuska Glacier. Classic cabins are available year round, at a discount rate in the winter, and offer a queen bed (and usually an additional twin), private bathroom (in the summer), dining area, and some kitchen amenities. Premier cabins provide visitors with two queen beds, a full kitchen, and private bathroom year-round. All of SheepMountain Lodge’s cabins feature stunning mountain views. sheepmountain.com Arctic Getaway has three cozy, furnished private cabins, each with a kitchenette. Guests are invited to attend a home-cooked breakfast each morning in the nearby 1910 gold rush dance hall. One of the cabins sleeps two, while the others sleep up to four and are both two stories. The

Arctic Getaway cabins are in Wiseman, which is north of Coldfoot. arcticgetaway.com

freezers onsite to store the day’s catch and a community fire pit for evening get-togethers. acabinbythepond.com

Orca Island Cabins is located on a private island in Humpy Cove in Resurrection Bay, which is just southeast of Seward. Privately-owned and -operated, Orca Island Cabins offers guests overnight stays in yurt cabins that sleep two to four on a queen bed and futon. Linens are provided, and each yurt has a kitchen, dining and living area, propane fireplace, private bathroom, and private deck with grill. orcaislandcabins.com

Millane’s Serenity by the Sea Cabins is located in Lowell Point, two miles south of Seward. At Millane’s Serenity by the Sea, guests will find three cabins tucked away in an oldgrowth Sitka spruce forest. Two of the cabins sleep four, the third sleeps six, and they all have a kitchen area, private bath, and access to communal fire pit and seating areas. serenitybytheseacabins.com

Talkeetna Cabins is home to three cabins with Denali views. Travelers from inside Alaska and out can choose from cabins that range in size from sleeping at least two to those that sleep up to eight. Each cabin is two stories and boasts kitchenettes, private baths, various sleeping space configurations, and private decks with stunning views. The cabins are set on twenty acres of land five miles from the historic town site of Talkeetna. traleika.com

Alyeska Hideaway Log Cabins in Girdwood boasts three cabin options and has been welcoming guests since 2002. Two of their cabins sleep four and the third sleeps six. Each fully-furnished cabin has its own personality in addition to a stocked kitchen. The cabins are two miles from the slopes and on the shuttle route. alyeskahideaway.com

Kenai Lodging & Cabins has seven cabins for rent that are within walking distance to a no-fee, public fishing area on the Kenai River. The cabins can accommodate groups or families of up to eight. Kenai Lodging & Cabins provides

Alaska Creekside Cabins is located in the Matanuska Valley and rents three waterfront cabins in Palmer and Wasilla. Each cabin has a private deck that overlooks either Cottonwood Creek or Wasilla Creek, providing beautiful views of Alaska wildlife. The cabins are available for rent year-round. alaskacreeksidecabins.com R

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SHOP

Anchorage MAR

Iditarod Start

“The Last Great Race” has its official start 10 a.m. at 4th Avenue and D Street in Downtown Anchorage. The Re-start takes place the following day (March 4) at 10 a.m. on the lake at the Willow Community Center in Willow, and the Awards Banquet takes place at the Nome Rec Center on March 18. iditarod.com

MAR

Family Concert

The Young Person’s Guide to the Orchestra is a stunning showpiece for orchestra and has been a family favorite in the concert hall for more than seventy years. Benjamin Britten was asked to write the score for a 1946 documentary film, Instruments of the Orchestra, designed to acquaint young people with the characteristics of various instruments. The piece was later adapted for the concert hall for orchestra and narration. This listening adventure for kids of all ages showcases each instrument of the orchestra separately before uniting them all together for an unforgettable ending. anchoragesymphony.org

MAR

This is the annual spring fund raiser for Bean’s Café, a not-for-profit organization with the mission to feed the hungry and shelter the homeless, takes place from 11 a.m. to 2 p.m. at the Dena’ina Center. Purchasing a ticket allows the attendee to select one locally made and donated bowl to take home, as well as enjoy soup and cornbread. beanscafe.org

Alaska Aviation Hall of Fame Gala

The annual Alaska Aviation Hall of Fame Gala will be held at the Egan Center in downtown Anchorage from 6 p.m. to 8 p.m. The Alaska Aviation Hall of Fame is a celebration of the men and women who shaped Alaska’s aviation history and thus the history of our state. The Hall of Fame also serves as the primary fundraiser for the museum, providing support for exhibits, educational programs, and public programs. alaskaairmuseum.org MAR

Ski Train

The Alaska Railroad, polka music, and skiing: The ski train to Curry is a must for cross country skiers. The special train departs Anchorage early in the morning filled with good times. When it arrives in Curry, skiers have this special, snowy spot all to themselves for the day. Party cars, polka cars, quiet cars, and others on the train means a fun ride no matter how you roll. NSAA membership is required to purchase Ski Train tickets, and all passengers, including the ticket purchaser, must be NSAA members. alaskarailroad.com

Fairbanks

Empty Bowl

PLAY 

MAR

Festival of Native Arts

The 45th Annual Festival of Native Arts, hosted at the University of Alaska Fairbanks, provides cultural education and sharing through traditional Native dance, music, and arts. fna.community.uaf.edu

1-3

MAR

KTVF Interior Wedding Showcase

This bridal show features more than sixty vendors ready, willing, and able to

STAY

help couples plan every detail of this special time, from pre-wedding events and showers to the honeymoon and, most importantly, the big day itself, all at the Westmark Hotel and Conference Center from 11 a.m. to 4 p.m. westmarkhotels.com/destinations/ fairbanks-hotel MAR

St. Patty’s Day Social Dance

Find a friendly Leprechaun; search for that pot o’ gold; save a jug of punch and share a tale. Irish or not, everyone’s invited to kick up their heels at the Ballroom Dance Club of Fairbanks’ St. Patty’s Day Social Dance. Be sure to wear green, or you may get a visit from a friendly Leprechaun. No experience or partner necessary, but please bring clean, nonmarking shoes to the dance that runs from 8:30 p.m. to 11 p.m. ballroomfairbanks.org

MAR

Owl Program

Meet live owls and enjoy kids’ crafts, artifacts, and presentations with Friends of Creamer’s Field at the Morris Thompson Cultural and Visitors Center. creamersfield.org

Homer MAR

Annual Homer Winter King Salmon Tournament

24 The Annual Homer Winter King Salmon Tournament is sponsored by the Homer Chamber of Commerce and takes place from 9 a.m. to 6 p.m. homeralaska.org Thompson Pass MAR-APR

30-8

Tailgate Alaska

Tailgate Alaska began in a single tent on Thompson Pass

with a handful of professional athletes, media veterans, six cases of beer, and a few dedicated recreational riders. What happened that first year would change snowboarding forever. It launched a new model to market the sport—one which puts inclusion, experience, and participation above everything else. Simply put, everyone who has attended Tailgate Alaska has been a participant—nobody comes to watch. tailgateak.com

Wasilla MAR

Mat-Su Outdoorsman Show

Mat-Su Outdoorsman Show 23-25 The features a gun show, a free archery range for kids, a laser shooting range for all ages, 176 vendors, seminars and demonstrations, and book signings by Alaska outdoor authors, all at the Menard Sports Center, Friday Noon to 6 p.m.; Saturday 10 a.m. to 6 p.m.; and Sunday 10 a.m. to 5 p.m. chinookshows.com MAR-APR

Mary Poppins

of the most popular Disney 30-22 One movies of all time is capturing hearts in a whole new way: as a practically perfect musical based on the books by P.L. Travers and the classic Walt Disney film. Disney and Cameron Mackintosh’s Mary Poppins delighted Broadway audiences at more than 2,500 performances and received nominations for nine Olivier and seven Tony Awards, including Best Musical. Performances are at the Glenn Massay Theatre on Fridays and Saturdays at 7 p.m. and Sundays at 2 p.m. valleyperformingarts.org R

Barrow

Kotzebue Fairbanks

Nome

Delta Junction

Mat-Su Anchorage Valdez Soldotna

Bethel Dillingham

Juneau Sitka

Kodiak Ketchikan Unalaska/Dutch Harbor

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EVENTS CALENDAR MARCH 2018

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RIGHT MOVES Great Alaskan Holidays

Great Alaskan Holidays added a new, full-time key employee to their already growing team of dedicated professionals. Jacob Helming recently relocated to Anchorage from Skagway where he was employed with Holland America Princess as a diesel technician Helming for the past few years. Helming joins a long list of highly skilled technicians inspecting, servicing, and maintaining Great Alaskan Holidays’ extensive fleet of motor homes.

Chugach Electric

Lo n g t i m e m e m b e r a n d re ce nt Chugach volunteer Rachel Morse has been appointed to fill a vacancy on the Chugach Electric Association Board of Directors. Most recently, Morse was Assistant Vice Chancellor for Alumni Relations at the University Alaska Anchorage (UAA). She has also Morse served as development director for the Rural Alaska Community Action Program and executive director at the Bird Treatment and Learning Center. Morse has a MBA from UAA. Morse has been a Chugach member for more than seventeen years and served on the Nominating Committee for the past three years.

PFD Board

Governor Bill Walker appointed Craig Richards to the Alaska Permanent Fund Corporation Board of Trustees. The governor-appointed board is composed of six trustees who manage the corporation’s policies. The board includes four public members, the Commissioner of Revenue, and an additional cabinet member of the governor’s choosing. Richards is currently vice president and general counsel for Bering Straits Native Corporation. He served as attorney general from 2014 to 2016, during which time he played a key role developing the concepts which underpin the Permanent Fund Protection Act, a proposal now being considered by the Legislature that would ensure the longevity of the dividend program while leveraging the state’s wealth to help pay for government services. Richards holds an undergraduate finance degree from the University of Virginia, a master in business administration from Duke University, and a juris doctor from Washington & Lee University.

Stantec

Ross Timm, AIA, NCARB, LEED AP, joined Stantec in its Anchorage office, bolstering the firm’s buildings practice. He has more than a dozen years of instate industry experience serving both public and private clients. Timm In his new position, Timm provides senior design leadership for a variety of building projects. Since joining Stantec, Timm has focused on healthcare facility renovations, commercial multi-family residential, and Alaska Court System building envelope upgrades. He has project experience across Alaska from Anchorage to the Aleutians and the North Slope. His experience includes projects of a variety of scopes and sizes, including schools, fire stations, multiple projects for the Federal Aviation Administration, and medical office buildings. In addition to his Alaska experience, Timm has worked on projects in Washington, Oregon, and Arizona. He is a member of the American Institute of Architects and a LEED Accredited Professional. He earned a master’s degree from Arizona State University and a bachelor’s degree from Northern Arizona University.

Tlingit & Haida

The Central Council of Tlingit and Haida Indian Tribes of Alaska (Tlingit & Haida) promoted Amber Frommherz to Head Start Director. Frommherz first joined Tlingit & Haida in 2014 as a co-lead teacher for Head Start, which is a free federal Frommherz program that provides comprehensive early childhood education to eligible children ages three to five and their families. As the Head Start director, Frommherz’s main duties are to ensure the program meets all performance standards, review and improve service delivery in partnership with Head Start’s Parent Policy Council, complete all grant reporting requirements, and oversee the supervision of all Head Start employees. Frommherz holds a bachelor’s degree in American Studies–North American Indigenous Studies and a master’s degree in Educational Studies from Tufts University.

Coastal Villages Region Fund

Coastal Villages Region Fund (CVRF) hired Michelle Humphrey as the company’s first-ever Outreach Manager. Humphrey will coordinate CVRF’s internal and external communication efforts.

In her new role, Humphrey will work to raise CVRF’s overall brand awareness and strengthen the company’s community organizing and issue-advocacy capacity. Humphrey holds a bachelor’s degree in marketing from Northern Arizona University and a master’s degree in global supply chain management from the University of Alaska Anchorage.

Alaska Peninsula Corporation

The Alaska Peninsula Corporation (APC) announced the promotion of Brad Angasan to VP Corporate Affairs. Angasan is an APC shareholder and has been with the family of companies for more than eleven years. He attended Western State College Angasan of Colorado and University of Alaska Fairbanks, School of Management. Angasan’s career began with APC as a project manager at Wētaviq LTD, a wholly owned subsidiary. Since then, he has served at various executive management levels at other APC subsidiaries involved in government contracting for transportation management and construction services. Angasan has twenty years management experience in both the nonprofit and for-profit sectors. As Vice President of Corporate Affairs, Angasan oversees executive direction of corporate business development, land resources management, and shareholder relations.

Morris Thompson Cultural and Visitors Center

The Morris Thompson Cultural and Visitors Center announced Sara Harriger is the new Executive Director for the Center. In her new position Harriger is charged with managing and promoting the Center’s facility, which is home to Explore Fairbanks, the Alaska Public Lands Information Center, Denakkanaaga, and the Tanana Chiefs Conference Cultural Programs. She Harriger also oversees fundraising to build the Center’s cultural endowment. Harriger brings to the position extensive experience in public diplomacy, management of multi-stakeholder projects, and cross-cultural collaboration. A graduate of the University of Alaska Fairbanks, she previously served as a Foreign Service Officer and speaks French, Japanese, and Arabic.

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GCI

GCI announced the promotion of Jason Tomberlin to Director of GCI Education, within the company’s Government, Healthcare & Education team. In his new role, Tomberlin is responsible for the GCI Education Tomberlin program, providing strategic management, operational execution, revenue growth, and marketing efforts associated with the education market segment. Tomberlin has been with the GCI Education team for more than ten years, serving in a variety of capacities, ranging from the designing of school networks to the creation of innovative solutions specific to Alaska’s education needs.

Alaska USA Federal Credit Union

Alaska USA Federal Credit Union appointed five individuals to executive level positions. Rachel Norman has been selected for the new position of Chief Administration Officer. Norman has been with Alaska USA for more than twenty-four years, most recently as senior vice president, Human Norman Resources. Norman holds a bachelor’s degree from the University of North Texas. Brenda Lind has been promoted to the position of Vice President, Personnel. Lind has been with Alaska USA for more than twenty-seven years, most recently as manager, Personnel. Lind Clinton Hess has been selected to fill the position of Vice President, Financial Analysis. Hess has been with Alaska USA for more than twelve years, most recently as manager, Financial Analysis. Hess holds a bachelor’s degree from the University of Alaska and a master’s degree in business Hess administration from Alaska Pacific University. Athar Nazir has been promoted to the new position of Vice President, Special Credits Operations. Nazir has been with Alaska USA for six years, most recently as manager, Special Credits Operations and Administration. Nazir

Nazir holds a bachelor’s degree in economics and master’s degree in finance. Leisa DeYarmon has been selected to fill the new position of Vice President, Special Credits Collections. DeYarmon has been with Alaska USA for five years, most recently as Special DeYarmon Credits operations manager. “As Alaska USA grows, the credit union looks towards individuals that can maintain the high standard we set for member service and employee management,” said Geoff Lundfelt, President and CEO. “Alaska USA prides itself in developing as many of those individuals as possible inhouse. Not only have these executives proven themselves to be consummate professionals, but they bring an indepth knowledge of Alaska USA and the necessary skills to make the credit union even better moving forward.”

Landye Bennett Blumstein

The law firm of Landye Bennett Blumstein announced that Leslie R. Need has become a partner in the firm. Need works in the firm’s Anchorage office. Need previously clerked for US Magistrate Judge John D. Roberts and Alaska Superior Court Judge Vanessa Need White and worked at the Alaska Attorney General’s Office in the Child Protection Section. Need focuses her practice on municipal, Alaska Native, environmental, and natural resources law. She represents business and individual clients in litigation, both plaintiff and defense. Need received her BS from Kansas State University and her juris doctor from the University of Tulsa College of Law. She is a member of the Alaska Bar Association, American Bar Association, and Anchorage Bar Association. Need serves on the planning committee for the Alaska Bar Association’s Martin Luther King, Jr. Day of Service and previously served as the New Lawyer Liaison to the Alaska Bar Association Board of Governors.

Resource Data

Resource Data hired Chad Millen as Senior Programmer/ Analyst to its Juneau branch. Millen recently relocated from New York to Juneau. He has his BS in electrical engineering from Ohio State University and his MBA from The State University of New York at Buffalo. For the past sixteen years he worked for HSBC Bank USA as consultant and Millen

project manager. He has experience leading front-end development teams and in digital channels solutions including web, Internet banking, ATMs, and mobile applications.

ASEA/AFSCNE Local 52

Jake Metcalfe was named Executive Director of ASEA/ AFSCME Local 52, the largest union in Alaska. Metcalfe is a fourth-generation Alaskan born and raised in Juneau and brings a wide range of workplace representation to his new position. For the past twenty years, Metcalfe has served and represented Alaska Metcalfe workers. From 1997 to 2008 he served as associate and general counsel for IBEW Local 1547. Most recently, he represented Alaska state and municipal police employees as executive director of the Public Safety Employees’ Association Local 803.

Reid Middleton

Reid Middleton, Inc. announced the addition of two new employees: Kelly Poston joined Reid Middleton as Marketing/Project Coordinator and Jonathan Kent joined as Revit Drafter. Poston has more than twenty years of technical writing experience and holds an MBA in business management from the University of Alaska Anchorage and a BBA in management information systems from the University of Alaska Anchorage. Kent has four years of professional experience with Revit and ten years with CAD. Kent also has six years of experience in construction design and building information management. Kent is near completion of his degree in the architecture and engineering technology program at the University of Alaska Anchorage.

Alaska Mental Health Trust

The Alaska Mental Health Trust Authority hired Wyn Menefee as Executive Director of the Trust Land Office. Menefee has been serving as the acting executive director since September 1, 2017. In FY17, the Trust Land Office produced nearly $12 million in revenue. The revenue generated by the land office is then reinvested or available for the Trust to use for grants. In fiscal year 2018, the Trust anticipates granting nearly $18 million to state agencies, nonprofits, tribal organizations, providers, and individual beneficiaries across Alaska. R

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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Business Events MARCH

MAR

1-2

Alaska Forest Association Spring Meeting

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

MAR

SWAMC Annual Conference

Hotel Captain Cook, Anchorage: The Southwest Alaska Municipal Conference advocates for its region by “providing accurate research and information, developing regional consensus on issues, and conveying local and regional priorities to government agencies, the Southwest Alaska Legislative Delegation, and the Alaska Congressional Delegation.” swamc.org

1-2

MAR

8-11

Alaska Library Association Annual Conference

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

MAR

9-11

Alaska Academy of Family Physicians Winter Update

Hotel Alyeska, Girdwood: This is the 20th annual Winter Update and opportunity for fifteen CME. alaskaafp.org/

MAR

Mat-Su Employer Expo

Mat-Su College, Palmer: The Expo estimates that more than one hundred companies will have representatives present, meeting with potential employees for entry-level, technical, and professional positions. Job seekers can also meet with career counselors and attend career workshops. jobs.alaska.gov

MAR

21-24

Alaska Anthropological Association Annual Meeting

Egan Center, Anchorage: The annual meeting includes workshops, an evening

reception for information and registration, paper presentations, and an awards banquet, business meeting, and the Belzoni meeting. alaskaanthropology.org

MAR

22-24

Career and Technical Student Organization Conference

Downtown Anchorage Hilton Hotel: CTSO is the connection to Career and Technical Student Organization, the Performance Based Assessment Conference where students participate in leadership training, conduct organizational business, and showcase themselves in competitive events. ctsoalaska.org

MAR

ComFish Alaska

Kodiak Convention Center: ComFish is the largest commercial fishing show in Alaska and the longest running fisheries trade show in the state, now in its 38th year, according to the organization’s website. kodiakchamber.org/comfish

22-24 MAR

TWS Alaska Chapter Annual Meeting

Alaska Pacific University: This is the annual meeting of the Alaska Chapter of The Wildlife Society and brings together wildlife researchers, managers, educators, students, and administrators. twsalaskameeting.com

26-29 MAR

27-29

Copper River Delta Science Symposium

Cordova Community Center: To better integrate current knowledge and plan future research efforts, the Copper River Delta Science Symposium will focus on the delta as a system, covering topics from hydrology and geomorphology to avian nesting ecology and trophic relationships. seagrant.uaf.edu

MAR

28-30

Western Alaska Interdisciplinary Science Conference and Forum

Nome: The annual Western Alaska Interdisciplinary Science Conference (WAISC) aims to bring together local and indigenous knowledge of subsistence–based communities and other scientific research relevant to the Bering Strait region, including environmental and health issues important to rural communities. seagrant.uaf.edu/events/waisc/2018/

APRIL

APR

4-5

Governor’s Safety and Health Conference

Egan Center, Anchorage: The Alaska Safety Advisory Council works with organizations to promote safety so that resources can be marshaled and used to reduce the menace of accidental death and injury. akgshc.com

APR

AKANA Annual Meeting

APR

Alaska Rural Energy Conference

APR

Alaska Native Studies Conference

Sheraton Anchorage Hotel & Spa: The annual meeting of the Alaska Association of Nurse Anesthetists is an opportunity for networking and education. alaskacrna.com

7-8

Westmark Fairbanks Hotel, Fairbanks: The Alaska Rural Energy Conference is a three day event offering a large variety of technical sessions covering new and ongoing energy projects in Alaska, as well as new technologies and needs for Alaska’s remote communities. akruralenergy.org

10-12

This year’s Alaska Native Studies Conference theme is: Past, Present, Future—Working Together. alaskanativestudies.org

13-15 APR

AFCCA Annual Child Care Conference

BP Energy Center, Anchorage: The conference includes seven hours of training, and lunch is provided. alaskafcca.org

APR

23-24

AKHIMA Annual Meeting & Education Conference

BP Energy Center, Anchorage: The Alaska Health Information Management Association is a state organization affiliated with the national organization American Health Information Management Association, an association of health information management professionals worldwide. akhima.org R

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Inside

Alaska Business March 2018

RAIN PROOF ROOFING

arlisle SynTec Systems, a leading manufacturer of single-ply roofing materials, recently honored Rain Proof Roofing with its 2017 Perfection Award. Each year, Carlisle presents this award to a small percentage of its top contractors. Perfection Award winners are selected based on a history of exceptional installation quality and excellent warranty claim performance. To qualify, contractors must complete a minimum amount of warranted work and number of jobs per year. Recipients are then selected based on installation quality and warranty claim performance. rainproofroofing.com

STANTEC, EARL KORYNTA

tantec’s Earl Korynta, PE, was recently selected as the Northwest Legacy Award winner by Engineering News Record magazine, the nation’s largest industry journal for contractors and design firms. The Legacy Awards are handed out across several regions in the United States and acknowledge the winner’s contributions to the industry. The Northwest region includes Alaska, Washington, and Oregon. Korynta, who co-founded USKH Inc. in the early 1970s, has worked in Alaska for nearly half a century. Stantec acquired USKH in 2014. Korynta, a private pilot with thousands of hours of flying experience, has worked on airport projects across Alaska, from Barrow to Ketchikan and Unalaska to Kotzebue. stantec.com

THE ALASKA COMMUNITY FOUNDATION

he Alaska Community Foundation selected Baird as its new investment consultant to advise the foundation on its $76 million investment portfolio. The Alaska Community Foundation was seeking a

firm to help analyze and hire external managers, review investment policy, strategy, portfolio mix, and consult on its asset allocation model. Baird is an employee-owned, international wealth management, capital markets, private equity, and asset management firm. Established in 1919, Baird has more than 3,400 associates serving the needs of individual, corporate, institutional, and municipal clients. Baird has $171 billion in client assets under management. Baird’s team, consisting of Joseph Hoon, Patrick Cronin, and John Fitzgibbons said, “We are honored that The Alaska Community Foundation has selected Baird, and Baird looks forward to building a partnership with the Foundation and the communities it serves.” Baird recently opened an office in Anchorage. alaskacf.org

MT. EDGECUMBE HOSPITAL

s part of Mt. Edgecumbe Hospital’s (MEH) overarching goal to provide the best care possible to individuals receiving medical care at MEH, the Hospital Nutrition staff, in partnership with food service contractor NMS, recently made traditional food options available to inpatients. New food options include local game, seafood, plants, and berries. Adding traditional foods to the hospital’s menu required coordination with more than one Alaska State agency including the Department of Environmental Conservation and the Department of Fish and Game. “As a team, we truly believe that the food we serve, and the hospitality we provide aid in the healing process. NMS is proud to prepare traditional foods that bring comfort to Mt. Edgecumbe patients, and we are committed to doing so,” said Lexie Smith, NMS Chef Manager at Mt. Edgecumbe Hospital. “The menu is meant to engage our guests, honor tradition, and respect the land. The

venison stew, in particular, is a recipe calling for fresh vegetables, herbs, and Sitka venison (as supplies are available). The stew is a popular menu option that many guests relate to and feel comforted by. Our Traditional Foods Policy allows the public to make donations of indigenous foods as long as it has been properly handled,” she added. “Patient-centered medical care is a critical component of the way we deliver healthcare at SEARHC. Our Traditional Foods policy is an example of that and an enhancement to our vision of promoting a healthy balance of mind, body, and spirit,” said SouthEast Alaska Regional Health Consortium President & CEO, Charles Clement. searhc.org

OFFICE OF THE GOVERNOR

overnor Bill Walker signed Administrative Order No. 292, establishing the Governor’s Commuter Rail Advisory Task Force. The nine-member group is being formed to determine the feasibility of a commuter rail service connecting Anchorage and the MatanuskaSusitna Valley. Right now, an average of 50,000 drivers commute daily on the lone ground transportation link that connects the two communities. “Anyone who drives on the Glenn Highway knows all too well that we need an alternative way to move between Alaska’s two largest population centers,” Governor Walker said. “This new group will make sure our rail system is reaching its full potential.” Results of the study will determine estimates of initial and ongoing capital costs, expected operating costs, potential ridership, a recommended governance structure, and economic benefits of a commuter rail such as saving on road maintenance and lowering emissions, among other details. Initial findings are due to the governor no later than May 31. gov.alaska.gov

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DEPARTMENT OF LABOR & WORKFORCE

Image courtesy of Alaska Airlines

opulation estimates for 2017 are now online at http://live.laborstats.alaska.gov/pop/. In addition to an estimate of the state’s population, the release includes estimates for each borough, census area, city, census designated place, school district, census tract, and Alaska Native Regional Corporation. Estimates by age and sex for each borough, census area, and place with a population of 1,000 or more are also included. Alaska’s population decreased by 2,629 people—about one-third of 1 percent—from July 2016 to July 2017, based on these most recent population estimates. Net migration—in-migration minus out-migration—accounted for a loss of 8,885 people while natural increase, or births minus deaths, added 6,256 people. This was the fifth straight year of net migration losses, the longest stretch on record, but natural increase more than offset those losses. labor.alaska.gov

I A

laska Airlines received a single operating certificate from the Federal Aviation Administration in January for Alaska Airlines and Virgin America, marking another significant milestone in the integration of the two airlines. The receipt of a single operating certificate will not result in any immediate differences for guests flying with Alaska or Virgin America. For now, guests will still use respective Alaska and Virgin America mobile apps, websites, and airport terminals when traveling. But when Alaska and Virgin America move to a single reservations system in late April, they can expect a more streamlined travel experience, with the Alaska mobile app and website serving their travel needs. Also in January, Alaska Airlines and fashion designer Luly Yang debuted a modern, West Coast-inspired, custom-designed uniform collection in January. The design, which was more than two years in the making, will clad 19,000 Alaska, Virgin America, and Horizon Air uniformed employees starting in late 2019. Alaska Airlines began the project by surveying thousands of uniformed employees; following up with focus groups and work site visits to understand the features different workgroups wanted to see in their new uniforms. Overwhelmingly, the top requests from employees were more pockets and designs that look great on all body shapes and sizes, as well as performance over a range of climates. The collection is designed to be layered so that employees can self-regulate comfort while working in the freezing temperatures of Alaska to the balmier weather of Mexico. Using the research and information she gathered from face-to-face interactions with employees across the system, Yang spent two years designing and creating a signature silhouette for the Alaska program. Her focus on fit and function enabled additional touches including water resistant materials, active wear fabrics, longer shirt tails that don’t untuck from skirts and trousers, and flexible textiles that move with the body. alaskaair.com

GCI

n January GCI announced the completion of . a wireless service upgrade in Utqiagvik that increases mobile data speeds for residents of Alaska’s northern-most city. The upgrade enhances voice and messaging. capabilities for GCI wireless customers in Utqiagvik and enables users to more easily browse the Internet and stream music and watch videos. This improvement is the latest milestone in GCI’s commitment to increase its wireless footprint across Alaska and provide improved service for customers statewide. Since 2014, GCI has invested more than $150 million in its wireless network which serves more than 240 communities. GCI’s wireless network is the largest in Alaska, with more than 97 percent of Alaskans living within GCI’s wireless footprint. The company plans to roll out wireless service upgrades in several other rural Alaska communities in coming months. gci.com

TANAINA CHILD DEVELOPMENT CENTER

he Tanaina Child Development Center at Alaska Regional Hospital is celebrating its grand opening. The new facility is 9,000 square feet and serves eighty-nine families.

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The center was operating in a temporary space at Alaska Regional Hospital after moving from St. Mary’s Episcopal in 2016 and after leaving its original location on the UAA campus in 2015, where the center opened in 1979. Tanaina operates its all-day program for children twelve months to five years old. In January Tanaina launched its new capital campaign for an infant care space and kitchen. Tanaina hopes to raise $150,000 by May 1 to begin construction. tanainacdc.org

CCI GROUP

CI Group, a subsidiary of Bristol Bay Native Corporation and a DOE-qualified Energy Service Company, was recently awarded a GSA (General Service Administration) Schedule 84 contract. This multiple-award contract supports energy performance contracting through the DOE ENABLE contracting program. The DOE ENABLE Program provides an expedited contracting mechanism for energy services and construction projects affecting any commercial, public, federal, or Department of Defense facilities that utilize the GSA Schedule 84. Contracts awarded under GSA Schedule 84 and DOE ENABLE generally encompass all energy resilience, security, and sustainability requirements and generally range in value between $200,000 and $15 million, though there is no established minimum or maximum contract size. The program also allows CCI Group to directly support customers as a prime contractor. This ultimately saves customers money and ensures an expedited process. CCI Group has more than a decade of energy services and performance contracting experience. One of the larger energy services contracts awarded to CCI Group included a 2016 $23 million Utility Energy Services Contract with Alabama Power Company that is modernizing the energy infrastructure at Anniston Army Depot in Alabama. cci-alliance.com

DEPARTMENT OF THE INTERIOR

S Secretary of the Interior Ryan Zinke signed an agreement with the Alaska Native King Cove Native Corporation, which is made up of tribal members from the local Agdaagux and Belkofski tribes, to build a life-saving road between the Native village and the nearby all-weather

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airport in Cold Bay. There have been eighteen deaths attributed to the lack of road access, either in plane crashes or the inability to receive timely medical treatment. In a community with no hospital or doctor, King Cove residents must fly 600 miles to Anchorage for most medical procedures. The agreement begins a process between the US Department of the Interior and the King Cove Native Corp. of identifying land of equal value needed for a single lane, restricted-access road. doi.gov

EXPLORE FAIRBANKS

xplore Fairbanks unveiled the Aurora and Midnight Sun Tracker, an addition to the Explore Fairbanks website. The Aurora Tracker gives realtime and three-day forecasts of northern lights data correlated to six different locations. The Midnight Sun Tracker calculates the number of daylight hours any time of year for three different locations. The Aurora Tracker uses three data streams to predict aurora viewing opportunities. Users can toggle between viewing locations, to see viewing chances change for different days and time of day. The six Aurora Tracker locations include Fairbanks, North Pole, Cleary Summit, Murphy Dome, Chena State Recreation Area, and Coldfoot. explorefairbanks.com

ALASKA HOUSING FINANCE CORPORATION

oday’s challenges to housing in Alaska include affordability, old or inadequate construction, and inefficient use of energy. Tomorrow’s challenges include more aging Alaskans and a transient population that is impacting communities—this according to a 2018 housing assessment completed for Alaska Housing Finance Corporation (AHFC), the state’s housing financing agency. The assessment captured available housing data and findings and will be used to prioritize AHFC’s work based on its mission of promoting safe, quality, and affordable housing. The 2018 Housing Assessment, including analysis by regional and census areas, is available on AHFC’s website. ahfc.us

ALASKA SEA GRANT

laska Sea Grant selected six research projects for funding during 2018-2020, with the

majority of the work getting underway in February. Titles of the funded projects and researchers involved are: “Integrating local ecological knowledge and survey data to improve assessment and management of rockfishes in Alaska”; “Kelp reproduction and harvest rebound in Kachemak Bay, Alaska”; “Metabolic and growth physiology of early life history stages of the northern spot shrimp, Pandalus platyceros”; “Potential for resilience—examining the effects of ocean acidification on native Alaska bivalves”; “Arctic Risk Management Network: Linking regional practitioners and researchers to improve mitigation through participatory action research by community monitors about erosion, surges, and nearshore sea ice loss as mutual priorities”; and “Assessing the resilience of Southeast Alaska salmon to a shifting freshwater environment.” The researchers will receive $1.3 million to study this diverse range of topics intended to help Alaskans understand, conserve, and sustainably use the state’s rich marine and coastal resources. seagrant.uaf.edu

FAIRBANKS NORTH STAR BOROUGH

airbanks North Star Borough Mayor Karl W. Kassel confirmed that senior representatives from Costco visited Fairbanks and the former Sam’s Club facility in January. Costco representatives met with Kassel and the borough’s community planning department and entered into an agreement to occupy the former Sam’s Club facility. Costco emphasized that they are in the early stages of evaluating the property; however, they were optimistic that they could conduct due diligence on the property in order to receive the necessary approvals quickly. Kassel said, “Our community and the outlying rural areas have a demonstrated need for this type of vendor. Costco has a long proven record of providing high quality products and service at their two locations in Anchorage and one in Juneau. I am more than pleased we can assist Costco in coming to Fairbanks soon.” The former Sam’s Club facility is located at 48 College Road in Fairbanks and sits on an approximately 12.4 acre parcel with a building size of almost 161,000 square feet. The building is zoned GU-1 and is considered a large scale development. ci.fairbanks.ak.us R

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ALASKA TRENDS

Alaska’s Top Ten Places to Retire

t seems the days of retiring at age sixty-five are long gone for many of today’s workers. A plethora of factors go into deciding when and where to retire. Most importantly perhaps is to consider the type of lifestyle one plans to lead once free from the nine-to-five grind. Whether intending to travel the world or stay home and catchup on decades of books and movies, Alaska is an ideal place to spend one’s Golden Years. While some costs will decrease in retirement (commuting costs, work wardrobe, that daily latte), others may go up (a ‘round the globe trip, for example). As for daily costs, retirees can expect to see increased healthcare costs at the bare minimum. The data presented here and compiled by SmartAsset lists the top ten locations in Alaska to retire taking into consideration state and local taxes, availability and cost of healthcare, and recreational opportunities for seniors.

3 2 6 1

WORSE

BETTER

Best Places to Retire in Alaska Rank 1 2 3 4 5 6 7 8 9 10

City Anchorage Wasilla Palmer Fairbanks Sterling Sitka Bethel Juneau Kenai Ketchikan Alaska

Retirement Centers per 1,000 people 0.4 0.0 0.0 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.1

% of Seniors 8.9% 11.7% 9.1% 7.6% 18.0% 13.2% 5.8% 10.4% 12.1% 13.4% 10.2%

Best Place to Retire Index 47.81 41.47 40.53 39.99 35.09 27.59 26.67 26.58 24.31 23.33

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Best Medical Care in Alaska Doctors’ Offices per Medical Rank City 1,000 People Care Index 1 Bethel 1.7 5.24 2 Anchorage 1.7 5.07 3 Wasilla 0.0 0.00 4 Palmer 0.0 0.00 5 Fairbanks 0.0 0.00 6 Sterling 0.0 0.00 7 Sitka 0.0 0.00 8 Juneau 0.0 0.00 9 Kenai 0.0 0.00 10 Ketchikan 0.0 0.00 AK 0.7

4 3 7 2

ANS Crude Oil Production 02/01/2018 05/01/2015 01/01/2014 09/01/2012 05/01/2011 01/01/2010 09/01/2008 05/01/2007 01/01/2006

ANS Production per barrel per day 566,074 Feb. 1, 2018

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

400,000

800,000

1,200,000

SOURCE: Alaska Department of Revenue Tax Division

ANS West Coast Crude Oil Prices

02/01/2018

WORSE

09/01/2014

BETTER

09/01/2012 10

09/01/2010 09/01/2008

Best Recreation & Social Opportunities in Alaska Recreation Recreation Centers per & Social Rank City 1,000 People Index 1 Anchorage 0.4 18.61 2 Sterling 0.0 14.53 3 Homer 0.0 13.64 4 Ketchikan 0.0 10.80 5 Sitka 0.0 10.63 6 Bethel 0.3 9.82 7 Kenai 0.0 9.74 8 Wasilla 0.0 9.42 9 Kodiak 0.0 8.52 10 Juneau 0.0 8.36 AK 1.6

5 8 1

6 3 2 7

ANS West Coast $ per barrel $71.02 Feb. 1, 2018

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

$20

$40

$60

$80 $100 $120 $140 $160

SOURCE: Alaska Department of Revenue Tax Division

Statewide Employment Figures 10/1976—11/2017 Seasonally Adjusted 12/01/2017 11/01/2012 01/01/2010 03/01/2007 05/01/2004 07/01/2001 09/01/1998

Labor Force 363,230 Dec. 2017 Employment 336,869 Dec. 2017 Unemployment 7.3% Dec. 2017

11/01/1995

09/01/2006 09/01/2004

01/01/1993 03/01/1990

WORSE

BETTER

05/01/1987 4

07/01/1984 09/01/1981 11/01/1978 01/01/1976

Source: SmartAsset (smartasset.com/retirement/)

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

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ADVERTISERS INDEX Aaron Plumbing & Heating Company...........65 ABC Motorhome Rentals..................................123 Advanced Dental Solutions................................92 Advanced Physical Therapy of Alaska........111 Afognak Leasing LLC.............................................41 Alaska Communications (ACS).........................91 Alaska Crane Ltd......................................................56 Alaska Dreams Inc..................................................76 Alaska Logistics........................................................88 Alaska PTAC.............................................................. 44 Alaska Railroad.........................................................52 Alaska Regional Council Carpenters.............55 Alaska Satellite Internet (ASI)............................96 Alaska Traffic Company.......................................40 Alaska USA Federal Credit Union....................75 ALSCO...........................................................................22 Altman Rogers & Co............................................106 American Fast Freight...........................................53 American Heart Association..............................10 American Marine / Penco....................120, 121 Anchorage Chrysler Dodge...............................19 Anchorage Sand & Gravel...................................64 Arctic Chiropractic..............................................113 Avis Rent-A-Car.....................................................112

Beacon Media & Marketing..................................11 Bowhead Transport Company LLC.................69 Bradison Management Group (BMG).............11 Bureau Veritas........................................................107 Business Insurance Associates Inc.................64 Calista Corp...............................................................96 Carlile Transportation Systems.....................109 CIRI..............................................................................116 Comfort Keepers...................................................111 Conam Construction Co......................................50 Conrad-Houston Insurance Agency..............14 Construction Machinery Industrial (CMI).......2 Copper Valley Telecom........................................16 Cornerstone Advisors...........................................15 Cruz Companies......................................................67 Davis Constructors & Engineers Inc..............61 Deadhorse Aviation Center/ Fairweather LLC................................................79 Donlin Gold...............................................................95 First National Bank Alaska.....................................5 GCI...............................................................................124 Holmes Weddle & Barcott...................................43 JENNMAR.................................................................106 Jim Meinel CPA P.C................................................20

Judy Patrick Photography...............................122 Kinross Fort Knox.................................................100 Land’s End Resort....................................................17 Landye Bennett Blumstein LLP.........................99 Lynden Inc..................................................................77 Matson Inc..................................................................33 MCN Construction..................................................56 MFCP, Motion & Flow Control Products Inc.....................................99 N C Machinery..........................................................59 Nana Regional Corp...............................................97 NCB................................................................................14 New Horizons Telecom Inc................................63 Nortech Environmental & Engineering........58 Northern Air Cargo.................................114, 115 Northrim Bank.............................................................9 Novagold Resources Inc..................................103 Oles Morrison Rinker & Baker LLP..................73 Olympic Tug & Barge............................................85 Orica..............................................................................95 Oxford Assaying & Refining Inc....................107 Pacific Coast Maritime..........................................85 Pacific Pile & Marine...................117, 118, 119 Parker Smith & Feek...............................................47

PenAir...........................................................................86 Petro Marine..............................................................89 Petrotechnical Resources Alaska (PRA).......82 Port of Alaska.............................................................51 Quality Asphalt Paving........................................ 44 Quintillion Networks.............................................80 Ravn Alaska................................................................93 Risq Consulting...............................................13, 21 Samson Tug & Barge..............................................61 Seatac Marine Service...........................................85 Shoreside Petroleum.............................................87 Span Alaska Transportation LLC.......................71 Stellar Designs Inc...............................................113 Sumitomo Metal Mining – Pogo LLC..........101 Superior Group........................................................62 T. Rowe Price.............................................................83 The Plans Room.......................................................52 Tutka LLC.....................................................................43 United Way of Anchorage......................................3 Usibelli Coal Mine................................................102 Vigor Alaska...............................................................45 Visit Anchorage........................................................23 Washington Crane & Hoist..................................81 Yukon Equipment Inc............................................55

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