Alaska Business September 2018 by Alaska Business

ALASKA NATIVE CORPORATIONS SPECIAL EDITION September 2018 Digital Edition

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September 2018 Digital Edition TA BLE OF CONTENTS

DEPARTMENTS

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

ABOUT THE COVER: Each year in September we take a look at the ever-growing activities of the Regional and Village Corporations established by the 1971 Alaska Native Claims Settlement Act. And fortunately for us, there is always exciting news to cover, from changes in leadership to acquisitions to new business lines to developing partnerships across almost every industry and throughout the world. If you ask the leaders of these corporations where their strength lies (and we do, quite often), they will tell you that the foundation of their success is their people—those who have come before, those hard at work today, and those on the horizon, preparing for a bright future. This year our cover features Alaska Native shareholders from seven of the twelve regional corporations who generously shared their time to represent their land, their people, and their traditions. As these corporations continue to grow, their strength bolsters the entire state; we are all stronger together.

7 118 120 122 123 126 128 130

Cover photo © Judy Patrick Photography / Design by David Geiger

ARTICLES

Geologist Joanna Lipske takes notes on rock formations in southwest Alaska.

Northrim Bank

Joel Rotert

8 Northrim Bank’s 2017 pancake feed at Mat-Su Career Tech High School, featuring its mascot, Peri, the moose.

FINANCE

8 | Cash for Community

Financial organizations provide money, time, and passion By Tracy Barbour

PROFESSIONAL SERVICES 16 | Contracted

Accounting Services

Tailormade bookkeeping options By Tracy Barbour

HEALTHCARE

20 | Responsible Pain Management

Physicians look beyond pills to help chronic pain patients By Isaac Stone Simonelli

TELECOM & TECH

26 | Digitized Trucking Enhancing efficiency, safety, and customer service By Tracy Barbour

TRANSPORTATION

52 | Customized Shipping LTL, LCL, and add-on services By O’Hara Shipe

MINING

60 | Rock Steady

Support services keep mining in motion By O’Hara Shipe

TOURISM

114 | Indoor Winter Tourism Education and entertainment without the winter coat By Judy Mottl

NIT

114 NIT students perform a pre-trip inspection on a Kenworth T680.

A new interactive exhibit in the recently renovated underwater viewing area at Alaska SeaLife includes the Octo Grotto, home to a giant Pacific octopus. Alaska SeaLife Center

Alaska Business | September 2018 www.akbizmag.com

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

We Believe in Alaska

September 2018 Digital Edition TA B L E

O F

C O N T E N T S

Building Alaska Special Section INTERIOR

34 | Constructing Optimism, Momentum, and History

Military might contributes billions of dollars to Interior projects By Isaac Stone Simonelli

PERMAFROST

38 | Building on Permafrost

Changing climate is just another challenge for builders keeping it cool in the Arctic By Isaac Stone Simonelli

HEAVY EQUIPMENT 47 | Heavy Lifting

US Air Force Captain Jake Impellizzeri, the Pacific Air Forces’ F-16 Demonstration Team pilot, executes an aerobatic maneuver during a demonstration practice for Arctic Thunder 2018, a biennial event providing an opportunity to share aspects of military life and operations with Anchorage and the greater Alaskan community.

Powerful machines, practical methods By Vanessa Orr

Yukon Equipment

Senior Airman Sadie Colbert

Charles Klever, President, Yukon Equipment

Alaska Native Special Section 2017 IN PERSPECTIVE

66 | Alaska Native Regional Corporation Review Reaching for the future where “opportunity abounds” By Julie Stricker

Olgoonik team in Barrow, 2016. Olgoonik

OIL & GAS

76 | Alaska Native Corporations Work at Home

Serving the North Slope By Tasha Anderson

DIRECTORIES

86 | Alaska Business 2018

Alaska Native Regional Corporation Directory

94 | ANCSA Village Corporations

SMALL BUSINESS

100 | Shareholder Entrepreneurs

Building up small businesses in communities statewide By Judy Mottl

INTERNATIONAL OPERATIONS

106 | Goldbelt Rising on a Global Scale Federal contracting spells local success By Tasha Anderson

TOURISM

110 | Alaska Natives Share Culture, History

Corporations diversify into visitor industry By Isaac Stone Simonelli

Alaska Business | September 2018 www.akbizmag.com

FROM THE EDITOR VOLUME 34, NUMBER 9 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 Specialist 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 Senior Advertising Account Manager Janis J. Plume 257-2917 janis@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.

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Standing for Business

everal weeks ago Jason Martin, Alaska Business vice president and general manager, strolled into my office with a handful of brochures, asked me to take a look them, and let him know what I think. Being the stellar worker bee I am, I picked up what I thought would be new marketing material or an interesting conference on the horizon, only to find they were all about Ballot Measure 1 (aka Stand for Salmon). This request was surprising to me because, in the world of journalism as I’ve experienced it, it’s rare for a media outlet to take a public stance on a political issue. But as I read through the material, I became increasingly concerned and decided more research was in order. Fast forward to today and I understand why Jason wanted me to look at this ballot measure. Because it is far more than a political issue, it’s a business issue, and that makes it an Alaska Business issue. Our mission is to provide a positive voice for business while championing economic growth through expert insight on businessrelated topics. We are proponents of Alaska’s business community, which is why the more I read about Ballot Measure 1 the clearer it is that, in order for Alaska Business to continue to fulfill our mission, we must take a stand against this initiative. The group that brought the “Stand for Salmon” initiative to life is hoping to sway Alaskans to vote for a law change that would require the Department of Fish and Game Commissioner to deny permit applications for development in salmon habitat if the development is deemed to have a “significant adverse effect” on salmon and/or its habitat. The group opposed to Ballot Measure 1—Stand for Alaska—is adamant that “Alaska needs tough policies that protect our environment, fish, and wildlife today and far into the future. And that’s why Alaskans are proud to have one of the most robust and comprehensive permitting systems in the world, as well as world-class fisheries management.” Both sides agree salmon—a vital part of Alaska living—is valuable, and you’d be hard pressed to find Alaskans who don’t care about the state of salmon habitats. Including the Alaska government. “Alaska’s laws include a section entirely dedicated to protecting one of our most important resources—fish. Since statehood in 1959, over eighteen new federal and state policies have been enacted to strengthen fish habitat protections. In addition, Alaska has added numerous regional protections that are unique to habitats and species, allowing for sophisticated policies that address the demands of each environment specifically. Every year, new bodies of water are added to the State’s protected fish habitat listing. Many regard ‘the Alaska model’ for fishery management laws and regulations among the strongest of all fifty states,” says the Stand for Alaska website. Dave Marquez, former Alaska Attorney General, says, “If this initiative passes, it will impact any permit or permit renewal near fresh water on the assumption that all waters in Alaska are anadromous fish habitat.” The tie to business? Ballot Measure 1 will make it more time consuming, costly, and (in some cases) impossible to acquire and renew the many permits needed to build and operate essential facilities such as airports, water treatment facilities, roads, bridges, docks, hydroelectric facilities, and other projects that already require extensive permitting from state and federal authorities. Ballot Measure 1 is a business issue, a quality of life issue, and, could determine whether some Alaskans can even continue to make a living in Alaska. I haven’t met a single person who believes Alaska companies should extract natural resources at any cost to the environment. Alaskans, whether they’re in the business of resource development or retail, have a deep love for this land and the wildlife that resides here. They also have the experience and knowledge to conduct business in an environmentally conscious manner—without Outside interests telling them how to do it. In early August, the Alaska Supreme Court ruled that Ballot Measure 1 can appear on the ballot in November once its unconstitutional provisions are removed; even with certain rhetoric removed, this measure is unreasonable and unnecessary. That is why Alaska Business is Standing for Business by saying no to Ballot Measure 1. —Kathryn Mackenzie Managing Editor, Alaska Business September 2018 | Alaska Business

FINANCE Volunteering in action. KeyBank employees give the Eagle River VFW a thorough spring cleaning. KeyBank

Cash for Community Financial organizations provide money, time, and passion

By Tracy Barbour

hilanthropy is a crucial part of the culture at Alaska’s banks and credit unions. Financial institutions such as Alaska USA Federal Credit Union (FCU), First National Bank Alaska, KeyBank, Northrim Bank, and Wells Fargo donate millions of dollars, thousands of volunteer hours, and manifold in-kind gifts annually.

Alaska USA Alaska USA FCU donates to many organizations through its community grant program, which supplies grants up to $1,000 to nonprofit organizations providing needs-based services 8

to areas in which it operates. “This allows us to provide funding to smaller organizations,” says Dan McCue, senior vice president of corporate relations. “We also give as a part of nonprofit sponsorships or because of employee giving initiatives.” Alaska USA and its employees also work to make a difference by donating their time to various organizations. These entities include Alaska Business Week, state and local chambers of commerce, Habitat for Humanity, The United Way, Armed Services YMCA, and the Financial Reality Foundation, which facilitates the Get Real Financial Reality Fairs. The credit union’s volunteer activities also extend to other areas. “Employees at Alaska USA are also involved with local boards and committees for a variety of nonprofit organizations, and Alaska USA does its best to support those organizations where our employees serve,” McCue says. “In addition to the more traditional volunteer

“The military community is very important to all of us in Alaska, and being afforded the opportunity to give back [is] meaningful in so many ways to our entire team.”

—Lori McCaffrey Alaska Market President, KeyBank

efforts, Alaska USA employees help to manage, run, and fundraise for the Alaska USA Foundation, a nonprofit organization founded in 2003 that gives back 99.9 percent of all income it receives to local nonprofit organizations.” Like other financial institutions, Alaska USA is selective about where it lends its support. Following its motto of “People Helping People,”

Alaska Business | September 2018 www.akbizmag.com

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Wells Fargo

Wells Fargo employees on Go Blue Day 2018, an annual event organized by the Alaska Children’s Trust. Participants dress in and decorate with blue to show support for the prevention of child abuse and neglect.

the credit union chooses to align with organizations that best match its mission, values, and brand as well as those that help the communities in which it serves. “This means that, as a whole, Alaska USA makes every attempt to donate time or money to organizations with a focus on financial education, active duty military, veterans, or children,” McCue says. He adds: “Our organization believes in supporting the communities in which we serve and, more importantly, our employees and members within those communities. Because our history is with the military, our organization aligns with those that support active duty members of the armed forces and veterans.” As part of its funding process, the credit union’s corporate relations department manages the requests it receives for support from community and nonprofit organizations. Funding determinations are based on the alignment of the request to Alaska USA’s focus areas, its membership base, the groups it has historically served, and its roots. “Depending on the type of request, the approvals for donations run through specific departments and sometimes go all the way to the president,” McCue says. Alaska USA determines the budget for philanthropic efforts on an annual basis, and each year the organization’s charitable giving tends to fluctuate. “In 2017, Alaska USA Federal Credit Union donated more than $600,000 to organizations in all of the areas it serves, reaching more than ninety Alaska-based organizations,” McCue says. “The level of contribution is directly related to the number of organizations that request funding in any given year.”

First National Bank Alaska First National Bank Alaska believes in Alaska and in giving back. It does this through volunteerism on the part of its staff and financial support in the form of charitable contributions, including bank donations and 10

community sponsorships. Giving back is essential to the success of Alaska’s communities, and the bank remains steadfast in its commitment to helping Alaskans’ dreams grow, says Community Reinvestment Act Officer Natasha Pope. “For nearly a century, First National Bank Alaska has been committed to Alaska and Alaskans and to their economic and cultural growth,” Pope says. In the past twelve months, First National has donated more than $1.8 million to a variety of Alaska organizations and causes. And since July 2013 it has contributed $5.89 million

throughout Alaska. “The bank’s annual cash budget for donations and community investment in recent years has remained relatively consistent at or just over $1 million dollars,” Pope says. “As a local community bank, we are proud of our level of investment as this nearly mirrors that of some of our market’s largest competitors.” First National’s cash donations over the past twelve months have gone to more than 150 nonprofits statewide. Nonprofits focused on providing youth, education, and basic emergency services receive the greatest amount of bank funding. Outside of these focus areas, additional organizations or causes of interest are economic and community development, arts and humanities, health, seniors and the disabled, and military or veteran services. For example, First National is proud of its leadership role helping the state’s youth succeed through significant support of the Alaska School Activities Association (ASAA) for nearly thirty years. The bank remains a longtime supporter of Alaska Public Radio Network news and cultural programs broadcast in communities across the state. And First National has supported United Way since its beginning in 1956 here in the state. First National’s staff volunteer in support of a number of nonprofit organizations and causes each year. In any given year, First National employees serve on an average of 130 nonprofit boards across the state. In addition to volunteering as nonprofit board members, bank staff volunteer in support of numerous community events. For example, employees teach financial literacy for Junior Achievement, dress bears for the Salvation Army’s Teddy Bear Tea, serve as cashiers at the Boys & Girls Club Annual Gala, wrap bowls

Wells Fargo employees volunteering for Fairbanks Clean Up Day. Wells Fargo

Alaska Business | September 2018 www.akbizmag.com

“Creating tomorrow’s workforce

starts with us. When we support the work of United Way of Anchorage and the 90% by 2020 Partnership to raise graduation rates, we all benefit. I encourage you to get involved.”

Reaching the goal depends on you!

Thomas Barrett

President Alyeska Pipeline Service Company 2018 United Way Campaign Chair

UNITED WE FIGHT. UNITED WE WIN. LIVE UNITED

Graduation is key to a successful start in life and in business. Businesses working together, encouraging kids, and supporting families sends the message to students that our community cares and is expecting great things from them. Business Partners for Lasting Impact Join us!

United Way of Anchorage

Reaching a 90% graduation rate by the year 2020 will take all of us, working together. We need YOU!

Donate. Volunteer.

KeyBank presents a check to United Way. KeyBank

at the Bean’s Café Empty Bowl Project, spruce things up during United Way’s Day of Caring, Paint the Town alongside NeighborWorks, and hand out awards at ASAA competitions, among countless other service commitments. The bank’s annual charitable contribution budget is developed in conjunction with annual forecasting and budgeting for the bank each year and must be approved by executive management and the board of directors. In addition, requests for donations and community support are primarily received from nonprofit organizations working in the eighteen communities in which the bank operates branch offices. Each branch manager has the authority to make community sponsorships to local community organizations and events. Philanthropy is engrained in First National Bank Alaska’s culture. “Locally owned and operated since 1922, our bank is committed to serving Alaska communities where we do business,” Pope says. “Bank officers, directors, and employees take great pride in the generous contributions made by our bank in support of their volunteer service and its impact to our communities. This helps grow employee satisfaction and enthusiasm to help improve lives and strengthen communities.”

KeyBank Alaska KeyBank Alaska’s giving strategy is based on four pillars: neighbors, workforce, education, and service focused. In addition to being guided by these pillars, the bank also places a special importance on financial wellness. “Our purpose is to help our clients and communities thrive,” says Lori McCaffrey, KeyBank’s Alaska market president. “Through lending, investing, grants, and volunteerism, we balance mission and margin to participate in the growth and revitalization in the communities we call home.” In 2017, KeyBank in Alaska invested approximately $200,000 in grants, sponsorships, 12

matching gifts, and in-kind donations. And more than 50 percent of its Alaska employees donated more than 400 hours of volunteer service. In the past five years, KeyBank has contributed approximately $1 million in Alaska, excluding all matched and in-kind gifts. KeyBank’s benevolence impacts dozens of organizations in Alaska, including many long-standing partners such as Anchorage Economic Development Corporation, Calista Education and Culture, Chugach Heritage Foundation, Doyon Foundation, Junior Achievement, and Tanana Chiefs Conference. The bank also provides financial and volunteer support to organizations that foster safe and stable communities like Covenant House, United Way, NeighborWorks, and Cook Inlet Housing Authority. One of the signature ways KeyBank helps communities thrive across its entire footprint— from Maine to Alaska—is through Neighbor’s Make the Difference Day. On May 23, KeyBank closed several of its branches, and employees spent the afternoon volunteering at various organizations and community service projects. Included in that effort was an outreach project for the VFW in Eagle River. “Led by Alaska’s Retail Leader Vicki Myers, it was truly an impactful and rewarding experience,” McCaffrey says. “The military community is very important to all of us in Alaska, and being afforded the opportunity to give back was meaningful in so many ways to our entire team.” Community and board service are also important to KeyBank, which encourages employees to volunteer at different levels. For instance, McCaffrey’s board service includes the Governor’s Prayer Breakfast and the American Heart Association. In fact, next year she will serve as Chair for the Anchorage American Heart Association’s Go Red for Women initiative. With a family history of heart disease, McCaffrey feels it’s

important to motivate women to take action against cardiovascular disease. McCaffrey says corporate responsibility is part of KeyBank’s DNA, underscoring the importance of giving back to the community. KeyBank does this by addressing the needs of underserved communities and low to moderate income individuals, as well as aligning business strategies with community development. Recently, KeyBank announced a five-year National Community Benefits Plan that calls for the bank to invest $16.5 billion in lending and philanthropy nationwide. As a testament to its efforts, KeyBank has received nine consecutive “Outstanding” ratings under the Community Reinvestment Act from the Office of the Comptroller of the Currency. “It’s a very proud moment for all of us at KeyBank, being the only top-twenty US bank to earn this accolade for exceeding the terms of the Community Reinvestment Act,” McCaffrey says. “And we are very excited to see the outreach efforts unfold in our Alaska communities.”

Northrim Bank Northrim Bank was founded on the principle of providing excellent local customer service. Giving back to the community is one of the ways it accomplishes this, according to Community and Public Relations Officer Katie Bender. Northrim provides cash donations to a variety of organizations, particularly those that provide support for lowincome individuals and promote community development. Beneficiaries of Northrim’s philanthropy include Toys for Tots, Camp Fire Alaska, and The Salvation Army’s McKinnell House, which provides emergency shelter for homeless families with children. Northrim also donates money to University of Alaska and maintains partnerships with elementary, middle, and high schools throughout the state. In Anchorage, the bank partners with

Alaska Business | September 2018 www.akbizmag.com

“

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Wells Fargo

Luke and Mary Connally receive a new home near downtown Palmer thanks to a mortgage-free donation resulting from a partnership between Wells Fargo and the Military Warriors Support Foundation.

Fairview Elementary, funding T-shirts for certain events, extra gym shirts for students, and turkeys for families during the holidays. “We’re proud to support organizations that help our most vulnerable neighbors and those that help our communities grow,” Bender says. Northrim strives to support organizations holistically. Many of its more than 300 employees serve on boards and committees as well as volunteer at the same organizations that receive financial donations from the bank. “We want to do more than hand a check over once a year,” she says. Employees are paid for the time they spend volunteering during business hours for a banksupported event. “Employees are encouraged to volunteer at events that are near and dear to their hearts,” Bender explains. “We try to be very flexible with our employees, so they are able to volunteer at organizations that are meaningful for them.” Northrim encourages its employees to suggest community service projects that personally interest them. Junior Achievement is a favorite nonprofit for many employees. So is NeighborWorks Alaska. “We always have one or two teams for their Paint the Town program,” Bender says. Northrim Bank also prioritizes participating in professional industry organizations, such as chambers of commerce, economic development groups, the Resource Development Council, and the Alaska Support Industry Alliance. “These are organizations that our customers are part of,” Bender explains. “These are organizations and industries that drive our economy, so it’s important for us to be engaged in them as well.” When choosing organizations to support, Northrim considers two basic groups: charitable organizations and business entities. Each year, the organization is required to submit a request for funding for the upcoming year. Bender says: 14

“We really look at what they’re asking for and what the need is. We also look at whether there has been strong engagement with this organization in the past and if there are opportunities for our employees to be involved. If there is a strong match for our focus areas, we are likely able to fund the request.” In 2017, Northrim contributed more than $572,000 to Alaska organizations, and its employees provided 2,064 volunteer hours. Over the last five years, the bank has donated $3.3 million, and it has contributed $9.6 million during its twenty seven-plus years of existence. “To put this into perspective,” Bender says, “when the bank was founded, we had an initial capital of over $8 million. So we’ve given back to the community more than we had in our initial capital raise.” “We are members of our community just as our customers are,” she says. “We believe a strong community is good for everyone, and we are proud to be a part of our community and we help wherever we can.”

Wells Fargo Corporate citizenship and philanthropy are essential to Wells Fargo. As a national company, Wells Fargo is able to leverage multiple initiatives and pools of funding for communities across the country. In every state, Wells Fargo conducts a community needs assessment that involves surveying nonprofits statewide. “We ask the ones who are in the field doing the work what they see that the community needs,” says Alaska Community Relations Manager Judith Crotty. “We distill that information and come up with local market priorities. In Alaska, that helps us drive where we invest.” Wells Fargo’s local market priorities in Alaska focus on investing in affordable housing, homelessness, education, workforce development, and promoting healthy communities,

which entails ensuring access to food, affordable healthcare, day care, and other necessities. “When we are looking at our strategic giving, we have a lens of empowering our lowto moderate-income and underserved com munity,” she says. Affordable housing is generally a need across all communities in Alaska, Crotty says. For military veteran Luke Connally and his wife, Mary, that need was met when they received a house as a mortgage-free donation. The home, located in Palmer, was donated in June through the partnership of Wells Fargo and the Military Warriors Support Foundation. Since 2012, Wells Fargo has donated more than 350 homes, valued at more than $55 million, to veterans in all fifty states. In 2017, Wells Fargo invested $1.3 million through donations and sponsorships to support hundreds of nonprofit organizations in Alaska. The bank’s 700 team members in Alaska also volunteered a record 13,000 hours with nonprofits, schools, and community organizations and personally donated $242,000 through the company’s annual Community Support Campaign last September. Wells Fargo serves as a “cornerstone” investor for many organizations, providing generous and long-term funding. It has been investing in a number of organizations for five or ten years, including Food Bank of Alaska, Covenant House Alaska, Cook Inlet Tribal Council, and the University of Alaska Fairbanks Rural Alaska Honors Institute. The bank also engages in place-based philanthropy. For example, in its ten years of investing in Anchorage’s Mountain View neighborhood, Wells Fargo has provided approximately $70 million to $80 million in donations and tax credit investments, Crotty says. Volunteerism, Crotty says, is extremely important to Wells Fargo. Every team member who works full time can receive sixteen hours of paid time off to volunteer. “That’s a huge commitment of Wells Fargo, underscoring the importance of having our team members engaged in areas where they are passionate,” she says. “When you have team members engaged outside the company, they are more apt to be happy employees.” Nationally, Wells Fargo donated $286.5 million to more than 14,500 nonprofits in 2017. Team members across the company volunteered 2 million hours last year, including 183,528 hours of service on 3,679 nonprofit boards. And Wells Fargo has plans to increase its corporate giving. The company has vowed to give $400 million in cash to nonprofits in 2018, representing a 40 percent potential increase in its corporate philanthropy compared to last year. And starting in 2019, the bank is planning to spend 2 percent of its after-tax dollars on corporate philanthropy. 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 | September 2018 www.akbizmag.com

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PROFESSIONAL SERVICES

Contracted Accounting Services Tailormade bookkeeping options By Tracy Barbour

Becoming Accountable BDO USA’s Anchorage office, for instance, provides a wide array of accounting, auditing, and tax services. The firm’s bookkeeping department offers full-service accounting and assists many clients with payroll tax returns, including end of year W-2s and 1099s. “We do full general ledger accounting to help clients produce a more accurate financial representation of their business,” says Senior Tax Associate Brittney Flowers, CPA. “Our auditing department offers compilations, reviews, and audits for more assurance related to financial statements. Our tax department prepares a wide variety of tax returns including for profit, notfor-profit, individual, foreign, estate, and gift tax returns.” At Altman, Rogers & Co., clients are offered “cradle to grave” services from the initial account set up through the final tax return filing and all of the services in between. The firm offers services on an à la carte basis, allowing clients to specify what they need. From that, the firm can determine if there are any gaps in what clients are requesting to ensure all aspects of their accounting needs are addressed. “Some clients only utilize us for payroll, while other clients use us for their day-to-day accounting, financial statement preparation, and tax return processing,” says Firm Administrator Heather Savery, who manages contract accounting services for the company. Smaller companies tend to engage contract accountants more often than larger organizations. These are the entities that are not so small that the business owner wants to do the accounting to keep costs down but are not so large as to need one or more employees in-house dedicated to the accounting function. “Reasons for contracting can include having a need for some accounting assistance without having enough day-to-day accounting needs to warrant hiring an employee to perform those functions; the desire to have an expert handle 16

“By having an experienced accounting consultant, it can save the business money and time. It also allows the business many more resources, as contracting accounting services tend to have a bigger network to help with client needs.”

—Brittney Flowers Senior Tax Associate, BDO USA

the accounting; or it’s a matter of not having the time or resources to oversee that function, thus allowing an outside firm or individual to have that responsibility instead,” Savery says. Companies employ various tactics when it comes to using contracted accounting. Some businesses outsource everything to contract accountants while others adopt a more limited approach. “Some will bring in all their records to their tax preparer at the end of the year and allow that person to piece together the year’s financial situation,” Savery says. “The benefit to using a CPA firm is that it offers a one-stop shop for small business owners’ accounting and tax preparation needs, fulfilled with the added benefit—depending on the firm—of business advisory services.”

Weighing the Pros and Cons Contracted accounting is suitable for businesses of all types and sizes. However, these services may not be the best option for companies that are in a complex or specialized industry because it may be difficult for them to find an accountant with the appropriate expertise, says Shane Baird, CPA. Before going the contract accounting route, businesses should carefully consider their reasons for outsourcing, their precise needs, the problem they’re trying to solve, and the potential benefit. “Don’t just outsource because everyone else is doing it,” says Baird, director in training with Thomas, Head & Greisen. Essentially, companies should consider the advantages and disadvantages of a contract

BDO USA

ontracted accounting is a viable— and oftentimes indispensable—option for organizations that lack the appropriate expertise in-house to meet ongoing or specialized accounting needs. Contract accounting services are wide and varied, and fortunately providers are willing and able to tailor their services to meet clients’ individual requirements.

Brittney Flowers Senior Tax Associate, BDO USA

accounting arrangement. A favorable aspect of contracted accounting is that it allows businesses to avoid the payroll, benefits, and other expenses of maintaining someone with this expertise in-house. “It gives you an opportunity to allocate more of your resources to activities that directly add to your core sources of business and to the success of your company,” Baird says. Contract accountants can lend broad experience and an outside perspective that can be beneficial for clients. They can apply an objective view and identify opportunities for improvement. Plus, an experienced outside accountant can provide clients with access to timely and accurate information, which is crucial for good decision making. “Old, stale information is just not useful,” he says. Also, when working work with a contract accountant, clients are often given access to additional services—services they might not know they wanted or needed and may be affordable when bundled together. Baird explains, “If you bundle all your services with one provider, you’ll usually get a better deal.” However, a disadvantage of contracted accounting involves potential limitations on control and other areas. Clients tend to have less control over the timeliness of financial reporting. There also may be limitations over

Alaska Business | September 2018 www.akbizmag.com

the specificity or customization of reporting—especially if a client uses very specialized software. Of course, contract accountants can easily adapt their services, but this can end up costing clients more in the long run. “If you want someone to be more customized and more adaptive, it will be more costly to get this with an outside accounting partner,” Baird says. Limitations may also extend to communication. Baird explains: “I think you will have less control and less ability to communicate with someone outside the company. From a day-to-day standpoint, you might not have the same amount of responsiveness as with someone onsite.” Another potential downside for some clients is sharing company data with an outside party. But if this is a major concern, clients can ask their accounting partner to sign a nondisclosure agreement, although this is not typical. Flowers says flexibility is just one positive aspect of contracted accounting. Businesses that do not have the need for a full-time accountant have the flexibility to hire an experienced bookkeeper for only a few hours a month or when the need arises. What’s more, her firm can help business owners learn how to keep their own books and help with periodic problems or special projects. “By having an experienced accounting consultant, it can save the business money and time,” Flowers says. “It also allows the business many more resources, as contracting accounting services tend to have a bigger network to help with client needs.” Savery says it’s difficult to say what the pros and cons are to contracted accounting services because these concepts depend on the organizations. So she sums it up this way: “Having an in-house, full-time accountant means having direct control over the accounting function, while outsourcing is trusting that the contract accountant is taking care of what needs to be done. Some business owners want to retain that control, while others are happy to have the accounting

“You want to have a relationship with [an accountant] throughout the year. You don’t want to just talk to them when it’s tax time… You want to have someone you’re comfortable asking questions to. A lot of times we don’t bill for those questions here and there because we want them to ask questions before they make a bad decision or buy equipment they don’t need.”

—Kelly Ward Co-owner, Robinson & Ward

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“Reasons for contracting can include having a need for some accounting assistance without having enough day-to-day accounting needs to warrant hiring an employee to perform those functions; the desire to have an expert handle the accounting; or it’s a matter of not having the time or resources to oversee that function, thus allowing an outside firm or individual to have that responsibility instead.”

Altman, Rogers & Co.

—Heather Savery Firm Administrator, Altman, Rogers & Co.

Heather Savery Senior Tax Associate, Altman, Rogers & Co.

function be ‘out of sight, out of mind.’ It can also be easier to pay an outside accountant one hourly rate, whereas hiring an employee includes the payroll, benefits, and human resource administration and costs associated with that employee.” Using contracted accounting services often boils down to cost versus need, says Kelly Ward, CPA, CGMA. Many of Alaska’s smaller and seasonal businesses cannot

afford to have a full-time accountant on staff. However, those that are able to hire an outside accountant can reap significant benefits. “CPAs, in general, have to have continuing education, so you’ve got someone staying up on the tax reform accounting… A lot of times they have multiple staff, so if your normal accountant goes out of town, you have somebody else on staff who can pick up,” says Ward, co-owner of Robinson & Ward in Fairbanks.

Hiring an Accounting Firm When hiring a contract accountant, Ward says, business owners should look for the obvious: those who are experienced and knowledgeable about their particular industry. It’s also important to find someone they trust and feel comfortable with discussing their needs. Ward says: “You want to have a

relationship with them throughout the year. You don’t want to just talk to them when it’s tax time… You want to have someone you’re comfortable asking questions to. A lot of times we don’t bill for those questions here and there because we want them to ask questions before they make a bad decision or buy equipment they don’t need.” Flowers recommends getting referrals from other business associates before retaining a contract accountant. Anyone can advertise themselves well, but word of mouth is always a great indicator, she says. Like Ward, Flowers advises business owners to search for someone who is responsive and can answer their questions. “They may not know all of the answers to your questions right away, but they should be able to find the answers,” she says.

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Alaska Business | September 2018 www.akbizmag.com

She also advocates checking in regularly with the contract accounting firm to see how things are going. “I recommend a follow up once a week to begin with,” she says. “Once the firm is more familiar with your company, it can be less often. The more communication you have up front and the more prompt you are to follow up, the more accurate everything will be.” Baird says the needs of the client should drive the hiring decision for a contract accountant. Education, credentials, and specialization are all crucial requirements, but capacity, accountability, and reliability are also important. “Are they going to meet your deadlines,” he says. It’s essential to define expectations to ensure the client and contract accountant are on the same page about the scope of work and everyone’s responsibilities. But at the end of the day, Baird says, the business owner and manager are ultimately responsible for financial reporting.

urgent matter. But there’s no guarantee of their availability, as some periods of the year are busier than others. “Rush jobs can also mean higher rates than normal to compensate for pushing off scheduled work,” Flowers says. Smaller businesses often retain a CPA for year-end accounting and reconciliation, which gives them the benefit of knowing their needs are being handled by a certified professional. For these companies, it can be helpful to have an outside CPA ensuring their financial statements are accurate or advising them periodically as matters arise. It’s entirely feasible to use contracted accounting services for ongoing, emergency, or periodic needs. The “nuts and bolts of accounting” is transactional, so it’s fairly easy for an outside provider to step in and provide

assistance, Ward says. “If you know the [client’s] software, it’s pretty easy to jump in,” she says. However, with spontaneous requests, clients should enter the engagement with tempered expectations, Savery says. “If the urgency is due to years’ worth of compiled issues, a company should not assume that a contract accountant can address those issues in a short period of time. It is always a priority to assist clients quickly—but more importantly, efficiently and accurately.” 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.

Engagement Letters and Contracts It’s always good to have a written agreement or engagement letter to outline the scope of the work being contracted, Baird says. This can help avoid surprises and ensure everyone’s expectations are met. Engagement letters, however, can be general or specific in nature, depending on the client’s needs. Engagement letters are generally created annually, with accounting firms often billing for work as it is completed. Billing for ongoing services is typically done monthly or quarterly and usually coincides with a deliverable. Sometimes accounting firms require a retainer for certain requested services. BDO requires yearly engagement letters for its clients. These cover the year following the date of the engagement letter. However, as different needs for the client arise, the firm can change the services they are providing the client within the year. “We can bill by the hour or by the project at a set fee, and we send out invoices on a monthly basis,” Flowers says. “All fees are agreed to up front and contained in our engagement letters.” Contracts are also useful instruments to have in place when dealing with outside accountants. Most contracts will run annually, though it’s not unusual to have three-year contracts, Ward says. A lot of businesses are moving to value billing for services, instead of using an hourly rate. “I think those are a great option, then you really have the full understanding of the engagement,” Ward says. Value billing allows clients to have a better understanding of their costs and avoid surprises. It also lets them avoid the tedium of tracking their hourly costs in the traditional six-minute increments. Ultimately, clients are better able to budget for the work that’s being done. Contract types tend to vary based on the size of the contractor and even the discretion of the contracted firm, Savery says. Sole proprietors will typically charge hourly, while larger firms will contract for monthly or quarterly engagements. “Most of the clients our firm engages with, however, are billed on an hourly basis, so those clients are only paying for the actual time worked,” she says. Some companies may need to hire outside accountants on short notice to address an www.akbizmag.com

September 2018 | Alaska Business

HEALTHCARE

Responsible Pain Management Physicians look beyond pills to help chronic pain patients By Isaac Stone Simonelli

s the opioid crisis deepens in Alaska and the nation, a growing amount of misinformation about the laws, regulations, and recommendations impacting primary physicians and pain management specialists abounds. 20

“There’s a lot of misunderstanding and misconception—even at the level of physicians— as to what is legislated and what is suggested,” explains Heath McAnally, MD, MSPH, a boardcertified anesthesiologist, pain physician, and addictionologist at Northern Anesthesia and Pain Medicine in Eagle River. McAnally also co-authored the 2017 American Society of Interventional Pain Physicians opioid clinical practice guidelines and wrote a textbook on the subject for Springer Nature, a research, educational, and professional publisher. “We’ve got this dual epidemic going on in this country right now with Institute of

Medicine telling us that 100 million Americans suffer with chronic pain. Well, that number is increasing and so is the number of people on opioids,” McAnally says. “Clearly, if you just look at it just from a prevalence of disease standpoint, we haven’t helped.”

State and Federal Legislation In Alaska, the most recent legislative attempt to combat opioid addiction came last year when Governor Bill Walker signed into law HB159, which passed both the house and senate with sweeping, bipartisan support. “I introduced this legislation as a part of

Alaska Business | September 2018 www.akbizmag.com

Your mission. Our specialized solutions. “We always consider all treatment options for each patient’s needs. Prescription medications are only one possible option in our toolbox.”

—Aaron Wollrich Marketing Director, AA Spine & Pain Clinic

our multi-pronged effort to fight the opioid epidemic facing Alaska, and I’m incredibly pleased to be able to sign it today,” Walker said at the signing. “One death resulting from opioid abuse or misuse is too many, and we must tackle this issue head-on as Alaskans. HB159 is an example of healthcare providers, legislators, and Alaskans pulling together to build a safer state as a community.” In February 2017, Walker declared a public health crisis in order to combat the state’s opioid epidemic. www.akbizmag.com

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“I actually left the OR and went into full-time pain management because I perceived, had been perceiving for several years, that we’re having a problem here with how we’re managing pain. And that we’re getting people hooked on opioids. And their pain isn’t getting any better.”

—Heath McAnally MD, Northern Anesthesia and Pain Medicine

“This disaster declaration is an important first step in addressing our public health crisis, which has devastated too many Alaskan families,” Walker said. The declaration established a statewide Overdose Response Program, enabling wide distribution of the life-saving drug naloxone, a medication designed to rapidly reverse opioid overdose. In addition to strengthening reporting and educational requirements for healthcare providers, HB159 limits first-time opioid prescriptions to a seven-day supply, though exceptions can be made if there are circumstances where it’s unreasonable to ask a patient to return in a week to refill a subscription. In much of the Lower 48, this possible loophole for abusing the law would be minimal. However, the rural nature of Alaska presents plenty of reasonable exceptions to the prescription limit. On the federal level, since the Harold Rogers Prescription Drug Monitoring Program (PDMP) mandate (which provides funds to

states that establish PDMP systems, though it does not specify any action that must be carried out based on information collected) went into effect, there has been very little legislative action, McAnally notes. However, physicians’ practices are governed by more than federal and state law. “Most of what is happening at a national level is advisory oversight,” McAnally says. “Professional societies and even some governmental organizations, such as the Center for Disease Control and Prevention [CDC], put out a big statement in 2016 saying we have a huge problem.” The CDC guidelines provide recommendations for primary care clinicians who are prescribing opioids for chronic pain outside of active cancer treatment, palliative care, and end-of-life care. Information from the CDC addresses when to initiate or continue opioids for chronic pain; opioid selection, dosage, duration,

follow-up, and discontinuation; as well as assessing risk and addressing the harm of opioid use. The CDC has been tracking chronic pain issues and opioid abuse for decades. The 2016 guidelines, which are not law, note that an estimated 20 percent of patients with non-cancer pain symptoms or pain-related diagnoses receive an opioid prescription. “In 2012, healthcare providers wrote 259 million prescriptions for opioid pain medication, enough for every adult in the United States to have a bottle of pills,” the guidelines state. To create the guidelines, the CDC basically distilled a consensus from experts throughout the nation, McAnally explains. “The guidelines are basically saying: This is how we feel chronic opioid therapy should be used. But that’s not law, it’s expert opinion. “Having said that, we as physicians are also judged in accordance with what is called standard of care. And we do our best to police ourselves as well. Just because something isn’t law doesn’t mean it isn’t important. These guidelines are all important.” Aside from legislation and clinical guidelines, there is also public sentiment. “The pendulum has swung quite a bit over the last ten to fifteen years where prescribing opioids is kind of taboo behavior right now,” says McAnally, who considers himself a conservative when it comes to issuing prescriptions.

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that have managed pain for over half a century. In other words, you’ve got physical therapists and chiropractors; you’ve got acupuncturists and naturopaths; you’ve got pain psychologists.” Among physician specialty pain management practices, McAnally says that traditionally they fall into one of two categories known colloquially as “pill mills” or “block shops.” Pill mills have ended up in the limelight due to their tendency to lean on opioid prescriptions in an attempt to manage chronic pain. Block shops, on the other hand, are practices that essentially minimize the use of prescribed medication. These practices rely more on injections and other medical procedures to manage pain. McAnally denounces the pill mill approach, pointing out that some 90 million Americans received an opioid prescription last year; 10 million to 15 million are misusing opioids; and at least 5 million are addicted. However, he also suggests that the block shop approach hasn’t done much to mitigate the problem either, with the federal government reporting one out of three Americans suffering with chronic pain. “This isn’t working. First of all, just from a disease standpoint, but secondly, from an economic standpoint,” he says. Health economists from Johns Hopkins University have reported that the annual cost of chronic pain is as high as $635 billion a year. That number, however, includes economic costs, such as lost productivity. “Our leaders are recognizing that we’re going to bankrupt the healthcare system, if not the nation, if we don’t change how we manage pain,” McAnally says. However, attempting to limit opioid prescription to minimize the risk of abuse, addiction, and overdosing does not mean that general practitioners and pain management clinics are unable to help patients suffering from acute or chronic pain. Opioids are simply one tool in their ever-growing toolbox. In fact, the Alaska Native Medical Center Pain Management Clinic doesn’t prescribe opioids at all. “So in general, pain medications for chronic pain should be handled through a primary care provider that has a relationship with the patient and understands their full health picture, not via our pain management clinic,” says Fiona Brosnan, the director of marketing and communications at the Alaska Native Tribal Health Consortium. Others practices, such as AA Spine & Pain Clinic, which serves Fairbanks and Anchorage, consider opioid prescriptions as just one option in its pain management arsenal. “We always consider all treatment options for each patient’s needs. Prescription medications are only one possible option in our toolbox,” says Aaron Wollrich, the marketing director for AA Spine & Pain Clinic. “Pain specialists have the ability to utilize a multitude of treatments, such as regenerative therapies, epidural injections, facet injections, nerve root blocks, cryo- or radio frequency nerve ablation, neuro stimulators, and pain pumps. Our providers always weigh the risk and benefits of all applicable treatment options.” The introduction of HB159 has had a

Alaska Business | September 2018 www.akbizmag.com

minimal effect on the majority of patients treated at AA Spine & Pain Clinic, Wollrich says. “We prefer to offer non-opioid treatments where they will be effective for our patients. Certain patients who have extreme conditions, such as multiple failed back surgeries or massive traumatic injuries, may be offered a neuro stimulator or pain pump as a treatment option,” he says. “We work with each patient to achieve a manageable pain plan.” As AA Spine & Pain Clinic doesn’t make any money from prescribing medications, the changes have had no impact on their bottom line, Wollrich says. McAnally says the changes have also had a minimal impact on his business. In fact, if anything, there has been a slight uptick in referrals from general practitioners who are becoming increasingly wary of prescribing opioids.

Educating Doctors, Patients, and the Public “I’m very restrictive on how I prescribe opioids, and I was doing this before. It’s not that I’m reading the weather vane and changing my practice,” McAnally says. “I actually left the OR and went into full-time pain management because I perceived, had been perceiving for several years, that we’re having a problem here with how we’re managing pain. And that we’re getting people hooked on opioids. And their pain isn’t getting any better.” McAnally points toward the National Institute of Health’s National Pain Strategy, which was commissioned by the US Department of Health and Human Services. “It’s still in a research and development stage. Implementation hasn’t started at a national level. But, some of the key points of this national pain strategy—what we’re being told we need to do—involves a ton of education,” he says. “We’re being charged with educating not only patients but also providers because a lot of frontline clinicians in primary care have absolutely no idea. There is a reason that we have pain specialists—it’s so complicated. Just like cardiology or neurosurgery isn’t in the purview of primary care. Chronic pain isn’t really either.” Part of that education for clinicians and the public is taking a holistic approach to treating pain through the biopsychosocial model, which attributes medical issues to the intricate, variable interaction of biological factors, psychological factors, and social factors, McAnally explains. “For example, there is excellent evidence out there that stress leads to coronary diseases and can even cause cancer. There are so many examples of this,” McAnally says. “What I’ve learned in fifteen-plus years of doing this is that if I do not address someone’s psychosocial components, their emotions, everything, there is no way I’m going to be able to help their physical complaint.” Another component of the National Pain Strategy is focusing on preventative medicine: a refocus on changing lifestyles to prevent pain from happening rather than trying to react to it. This comes down to helping patients create healthy eating, sleeping, and exercise habits. www.akbizmag.com

However, for some patients opioids might still be the best solution. Nonetheless, a bigger picture must be established before prescribing, notes McAnally. “When we’re talking about drugs with high-abuse liability like opioids, we, as physicians, have to be thinking beyond just this individual patient. We’ve got to be thinking from a public health standpoint. And there’s a huge problem with diversion of these drugs,” he says. Whether further restrictions on opioids are handled through federal or state legislation, the original source of their popularity—pain— isn’t going away. So neither are pain management clinics, though the way pain is managed continues to evolve.

Looking ahead, Wollrich says there is potential in the development of regenerative therapies, such as platelet rich plasma and stem cell treatments. “Unfortunately, they are relatively expensive and are not typically covered by insurance companies,” Wollrich says. Still, he says the move toward regenerative and alternative therapies in Alaska is quite strong. “As regenerative therapies further develop, they will likely be a huge part of treating pain in the near future.” R Isaac Stone Simonelli is a freelance journalist and former managing editor for the Phuket Gazette.

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TELECOM & TECH

Digitized Trucking Enhancing efficiency, safety, and customer service By Tracy Barbour

n the trucking industry technological innovations—also referred to as “digitized trucking”—include everything from systems designed to detect and wake tired drivers to semi-autonomous operations to kinetic energy recovery systems, predictive GPS, and electronic log devices. “In some ways, it is a Wild West landscape of the next best thing,” says Paul Carpenter, director of the Heavy Truck and Heavy Construction Equipment Program at Northern Industrial Training (NIT). NIT provides training and safety services, as well as business support, to industry partners throughout Alaska. 26

Digitized trucking is an evolving concept that means different things to different people, according to Carpenter, who has been involved in logistics leadership for more than twenty years as a speaker, trainer, manager, and truck driver. He explains: “To the driver, digitized trucking means that an app on their phone can find them a safe parking space for the night, a shower in the morning, and the world’s best coffee. It also means getting better directions, GPS-based speed and truck routing information, and not having to worry as much about log book violations.” He continues: “To the carrier, technology delivers an enterprise wide impact. Intelligent transportation workflows maximize driver and equipment utilization efficiency and increase accuracy of maintenance schedules and route plans. To the customer, transportation technology equals transparency. Knowing where your freight is and ‘when’ your freight is. Combine that with a great user interface

and real-time updates, and the customer has an experience likely to drive repeat partnering.” Innovations in digitized trucking are steadily improving safety, efficiency, fleet and driver management, and customer service. All of this translates into benefits for Alaska and the nation as a whole. In Alaska, many communities depend exclusively on trucks to move their goods, and trucks transport about 70 percent of the nation’s freight by volume, according to the Alaska Trucking Association. Alex McKallor, executive vice president and chief operating officer of Lynden, says the basics of moving freight via highway have not changed considerably. But what has changed is information flow between trucks, customers, and operations. This information being tied to strong systems has greatly improved planning and execution. Lynden is not limiting its focus on innovation to just trucking but is concentrating on all areas of its transportation services. “We have

Alaska Business | September 2018 www.akbizmag.com

Lynden’s trucking operations use many technologies to improve safety, productivity, and customer service. Lynden

and continue to leverage available technologies to improve safety, environment, efficiency, and our customer experience,” McKallor says. “Whether freight moves via water, highway, or air, we see the available technologies evolving at an increasingly rapid rate, so this is definitely a moving target—but always toward improving safety and service.” Competition is also a motivating factor for Lynden’s penchant for leveraging technology. “At Lynden, improving safety, environment, and regulatory compliance is non-negotiable, but everyone knows transportation is a competitive business, and competition certainly drives us toward all the things that improve efficiency and customer experience,” he says.

Enhancing Safety Electronic logging devices, commonly called ELDs, play a major role in the area of safety in the trucking industry. In December 2017, the Federal Motor Carrier Safety Administration www.akbizmag.com

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“By far, most [incidents that trigger recording devices] are not caused by our drivers or other professional drivers but, rather, other vehicles on the road doing dangerous activities like cutting off trucks in traffic… This technology serves as a good tool for training and provides a valuable reference should any issues occur.”

—Jered Post, Vice President of Operations, Lynden Transport

began requiring some interstate drivers to use electronic recording devices as part of their efforts to enforce hours-of-service regulations and reduce driver fatigue and paperwork for motor carriers and drivers. But not everyone is obligated to use ELDs. Only fleets and drivers who are required to complete paper logs must adopt compliant ELDs—unless they’re currently using automatic onboard recording devices that are grandfathered or unless they meet some other exemption. However, there is growing confusion around the application of ELDs, including choosing the proper hardware/software, connectivity issues, and concerns about how the devices are supposed to work at the roadside. “When it comes to selecting a reliable, compliant device—that will remain compliant and continue to offer reliable maintenance and service—you may as well be buying a TV from an online retailer,” Carpenter says. “We’re still very reliant on peer reviews and peer experience.” For these reasons, NIT is orienting its students to equipment

Lynden has equipped its trucks, including those of Lynden company Alaska West Express, with on-board event recorders that automatically record video when triggered by events such as sudden breaking. Lynden

Alaska Business | September 2018 www.akbizmag.com

intelligence and continuing to train on how to properly complete paper logs and navigate with a paper map book. “Fundamentals are crucial to know. As amazing as technology is, we continue to see fines or downed trucks if ELDs malfunction,” he says. “We also see trucks going down the wrong road or getting lost off route if GPS is inaccurate or malfunctioning. It is always the driver’s responsibility to be on appropriate routes, not exceed hour requirements, and understand what’s required for their vehicle height, weight, and cargo. Those fundamentals do not change much.” Carpenter points out that ELDs have been in use for decades. Werner Enterprises, a Nebraskabased freight carrier and transportation and logistics company, pioneered the use of

electronic logs in 1994. And the industry has followed suit. “Industry confidence and legislative support took twenty years to catch up to what was once a visionary’s strategic plan,” he says. Technology is an incredible tool. And as technology evolves, NIT evolves with it. “Truck operation may become plug-andplay, but trucks currently require skilled operators to successfully deliver mile after mile,” Carpenter says. “The role of the truck driver is changing in some ways, but truck driving professionals continue to require high degrees of specialized skill sets to safely move a rig down the road.” Technological developments have made entry into the industry more accessible than in

the past. Better creature comforts and increased ease of use are helping to attract new population segments into the industry. “With the technological and operational advances, driving a truck is even more pleasurable than ever,” Carpenter says. Driving a truck is also much safer now than in the past. Today, some motor carriers are taking advantage of other functions that can be combined in the ELD to leverage communication and vehicle tracking capabilities, says Aves Thompson, executive director of the Alaska Trucking Association. For example, they’re implementing event recorders to detect hard braking, hard turns, and other potentially dangerous driving habits, which provides valuable information to the

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Students prepare to couple a tractor to a trailer at NIT’s eightyacre training range. Courtesy of NIT

“Construction sites, mines, and ports are finding automated technology to be incredibly useful where consistent, predictable, and repeatable functions are required… Generally, humans are pretty unpredictable, so those types of automated functions can only reliably occur where people aren’t… so far.”

—Paul Carpenter, Director of the Heavy Truck and Heavy Construction Equipment Program, NIT driver and motor carriers. Motor carriers are also employing multi-use devices for fleet management. A few examples include forward- and back-facing cameras that provide factual information for accident investigations as well as driver behavior and the installation of radio-frequency identification technology on trailers and tractors to track the land-based travel of their equipment. “Shippers also use this technology to give them advance notice when a trailer has arrived at a certain check point, such as the warehouse gate, to alert them of an inbound shipment,” Thompson says. “Satellite tracking is required for Department of Defense contractors while carrying Department of Defense cargo. There are new applications becoming available almost daily to improve the safe operation of commercial vehicles.” Lynden’s trucking operations use many technologies to improve safety, environment, productivity, and customer experience. For 30

many years the company has designed its equipment to include integrated safety features. Early on, Lynden set its trucks so they could not speed and installed on-board computers that monitor vehicle and driver performance with regard to speed, fuel economy braking, idle time, and rapid braking, according to Jered Post, vice president of operations for Lynden Transport. “More recently, we have added collision avoidance systems that employ radar, lane departure sensing, and auto-braking along with anti-rollover systems,” he says. “Lynden also employs technology that anticipates mechanical issues before they become more serious risks down the road.” Over the last few years, Lynden has equipped its trucks with onboard event recorders that automatically record video facing forward and inside the cab when a triggering event occurs, such as sudden braking. The company reviews all of the videos and

proactively coaches drivers if needed. “However, by far most of the triggering events are not caused by our drivers or other professional drivers but, rather, other vehicles on the road doing dangerous activities like cutting off trucks in traffic,” Post says. “This technology serves as a good tool for training and provides a valuable reference should any issues occur.”

Improving Efficiency Trucking has become “intelligent” trucking, Thompson says. And with that progression, there are applications to help improve overall efficiency. There are applications that monitor driving habits to help enhance fuel efficiency, as well as applications to automate maintenance scheduling. “As you can imagine, hand recording maintenance records for a large fleet can be labor intensive, time consuming, and downright boring sometimes,” he says. There are also programs that allow for weigh station by-pass, providing great opportunities for compliant drivers and motor carriers. However, participation in these voluntary programs requires a good safety record as a driver or motor carrier. Thompson explains: “If the record is good and the weight is okay, the driver is given the green light to by-pass the weigh station without stopping. This is a great time-saver, as the average weigh station stop can be anywhere from about three to five minutes on a cursory inspection to forty to fifty minutes for a complete driver vehicle inspection.” In addition, systems are currently being developed that will allow an enforcement agency to conduct a full systems analysis of

Alaska Business | September 2018 www.akbizmag.com

“We have and continue to leverage available technologies to improve safety, environment, efficiency, and our customer experience. Whether freight moves via water, highway, or air, we see the available technologies evolving at an increasingly rapid rate, so this is definitely a moving target—but always toward improving safety and service.”

—Alex McKallor, Executive Vice President and COO, Lynden

the operation of a commercial vehicle while it is traveling at highway speed. Computer systems on the trucks are able to communicate with roadside or portable computer systems in an enforcement vehicle to facilitate such an inspection. Thanks to these and other innovations, a connected digital supply chain is steadily evolving. Some years ago there was a movement from the onsite warehousing of freight to a “just in time” delivery, according to Thompson. “This changed the way stores are built,” he says. “No longer does a big box store need onsite warehousing space because the commercial trailer is now the warehouse.” One of the current issues with logistics, Thompson says, is the delays at loading and unloading points because of a backup of trucks. This causes delays which may require

the driver to stop on the way home because he or she is “out of hours.” “Digitizing the exchange of manifests and bills of lading can expedite this process,” he says. “It will also help for scheduling purposes, so drivers are not unduly delayed while waiting to pick up or deliver a load. Some drivers’ compensation is determined by the mile and, of course, when the wheels aren’t tuning, the driver ain’t earning.” Enhancing fleet efficiency is also being addressed by technology. Large fleets specifically are appropriately concerned with optimization across hundreds or thousands of pieces of equipment, Carpenter says. “For instance, when you consider optimizing 500 or 1,000 power units to gain 1/100th of one gallon of fuel per mile, investments in optimization technology begin to make overwhelming

fiscal sense,” he says. “Conversely, if we’re talking about optimizing a fleet of ten trucks, the current cost of technology required would most likely be financially disruptive.” Currently, the industry is seeing Uber-like technology and Internet load boards being widely used to match loads with capacity, reducing overall market empty miles, Post says. “This has had a positive impact, but has not had any major displacement of established operators as was seen in the taxi business,” he says. “In our estimation this is because the constraints found in the taxi business do not exist in the trucking industry where capacity and flexibility to enter and exit markets is unconstrained.” In locations where it makes sense, Lynden uses route optimization software that greatly reduces miles while providing customers an estimated time of delivery as their freight is on a delivery route, Post says. The optimization systems take into account customer locations as well as available receiving hours, the type of delivery location, and the equipment needed. Lynden, which moves a substantial amount of temperature control freight, also has remote monitoring of its refrigerated equipment as it is moving goods on the highway or on a barge in the ocean. This helps the company to ensure temperatures always stay within a safe range for perishable items such as seafood, produce, and other groceries.

Future Innovation In terms of the future of digitized trucking, autonomous or self-driving vehicles are highly

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“Given the projected driver shortages over the next few years, these autonomous vehicles may help to reduce the problem of driver shortage. Full implementation of this technology will take a few years, but it is coming.”

—Aves Thompson, Executive Director, Alaska Trucking Association

anticipated. Many companies are testing selfdriving vehicles, and there is no question that someday the technology will be ready, McKallor says. But perhaps a bigger challenge than the technology will be the regulatory and public acceptance, beginning with passenger vehicles. “We anticipate self-driving commercial vehicles will be even farther in the future,” he says. “Even as technology advances, there is— and will continue to be—a high demand for safe, professional drivers in the industry.” He adds: “As the world moves toward selfdriving vehicles there will be steps in-between that will add greatly to safety and efficiency. 32

One example would be the electronic coupling of two or more vehicles on the highway where they can reduce separation and aerodynamic drag, boosting fuel economy about 10 percent. This technology has a lot of promise and will come way ahead of self-driving vehicles.” Thompson says the technology related to autonomous vehicles is developing much more rapidly than many expected. But he thinks the current emphasis is on “assisted driving” rather than driverless. This means that while the vehicle can operate by itself on the highway— for the short term—there will be a driver in the seat to ensure safe operation and for

the purpose of getting from the terminal or warehouse to the highway on both ends of the trip. “Given the projected driver shortages over the next few years, these autonomous vehicles may help to reduce the problem of driver shortage,” he says. “Full implementation of this technology will take a few years, but it is coming.” The technology involving self-driving vehicles is definitely on the horizon, but it has a long way to go before it can be reasonably safe for widespread use among the general public, Carpenter says. In general, he sees the technology emerging more in areas off of the public roadways. “Construction sites, mines, and ports are finding automated technology to be incredibly useful where consistent, predictable, and repeatable functions are required,” he says. “Generally, humans are pretty unpredictable, so those types of automated functions can only reliably occur where people aren’t… so far.” Overall, it’s an exciting time to be involved in the world of trucking, Carpenter says. “For

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An Alaska West Express truck at the Port of Alaska. Lynden

a long time, there was only minimal change in the industry. Someone would make a lighter component or a tire with less rolling resistance. And while those advancements were important, nobody fully cracked code that would unlock streamlined utilization until recently. Now that we’ve all got access to how to maximize fleet and enterprise efficiency, it’s exciting to see how it is being used to fuel the economy and how the economy is driving innovation.” He adds: “An exciting symbiosis is happening right now where high technology meets old school hard skills. And this symbiosis requires a special group of individuals to support our economy in the exciting and evolving world of truck driving and supply chain logistics.” 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. www.akbizmag.com

September 2018 | Alaska Business

SPECIAL SECTION

Building Alaska

John Budnik On June 5, Lucian Niemeyer and representatives for the Missile Defense Agency, Air Force, US Army Corps of Engineers, and construction contractors gathered for a groundbreaking ceremony at Fort Greely near Delta Junction. The event celebrated the start of construction for the $200 million Missile Field Four.

Constructing Optimism, Momentum, and History Military contributes billions of dollars to Interior projects By Isaac Stone Simonelli

ilitary modernization and Alaska’s strategic importance in the world are bringing more than a billion dollars of construction projects to the Interior. Construction in the area was bolstered when the military and veteran affairs budget for federal Fiscal Year 2019 cleared the Senate Appropriations Committee in June with approvals for continued investment in Alaska military installation and programs. “This funding bill is critical to providing the resources that we need to grow the military’s strategic presence in Alaska,” Senator Lisa Murkowski said in a statement. “The Air Force has identified Eielson’s new F-35 mission as one of its top funding priorities, and I am pleased to see that they are putting substantial investments toward that mission.” Ahead of the approval, Lucian Niemeyer, assistant secretary of defense for energy,

installations, and environment, toured military construction projects in the Last Frontier. “Because of the magnitude of the investments we are spending in the Fairbanks area, I felt it was important to come up here and get a first-hand look at what we are delivering to the warfighter and in time to meet their timeline,” Niemeyer said.

MF4 at Fort Greely During his June visit, Niemeyer took part in the groundbreaking ceremony of the Missile Field Four (MF4) construction project at Fort Greely, near Delta Junction. Construction on MF4 is underway to add twenty new Ground Based Interceptors (GBIs), which would bring the total deployed GBIs at Fort Greely to sixty by 2023, Fort Greely public affairs officer Chris Maestas says. “The FY2018 Defense Appropriations Bill allocated $568 million to initiate the expansion of MF4 and $393 million above the request to accelerate the development and fielding of twenty GBIs with a modern kill vehicle/new missile field at Fort Greely,” Maestas says, noting that not all the funds will be going to Fort Greely. Watterson Construction Company, headquartered in Anchorage, secured nearly $29

million of the budget for the construction of MF4’s mechanical electrical building. “The Corps selects contractors based on the proposal that provides the best value to the federal government in accordance with the Federal Acquisition Regulation,” says John Budnik, public affairs specialist USACEAlaska District. In addition to Watterson Construction, three other contractors are prequalified to complete the MF4 work: Bechtel National, Davis Constructors and Engineers, and Neeser Construction. As of early August, “Other MF4 infrastructure has not been awarded yet. However, it is my understanding that it will be awarded before the end of the calendar year,” Budnik says. Maestas points out that Fort Greely will have additional contractors that will utilize goods and services within the Fort Greely/Delta Junction community during the construction phase. However, an estimate of the economic impact within the local area has not been determined. Additionally, Maestas notes that the number of employees, warfighters, and security forces to maintain, operate, and secure the system once it is completed is still being determined.

Alaska Business | September 2018 www.akbizmag.com

John Budnik

F-35A Squadron at Eielson Watterson Construction also landed a contract—working with Fairbanks-based Callahan Construction—that is part of the buildup at Eielson Air Force Base in preparation for F-35A squadron. The joint venture was most recently awarded a contract worth about $19.1 million to build a consolidated munitions administration facility. Previously the companies secured a $7.8 million contract to build six munitions storage igloos. Already in Watterson’s portfolio is a $58 million contract to design and build a hangar for one of the two F-35 squadrons. “There are several construction projects associated with the F-35s arriving which include a flight simulator building, maintenance hangars, and weather shelters, as well as maintenance, administrative, and support facilities,” Eielson Air Force Base Chief of Public Affairs Captain Kay Nissen says. “In total, there are eighteen military construction projects and twenty-one facility renovation projects connected to the F-35 arrival at Eielson Air Force Base.” The projected cost of the construction and renovation projects is about $576 million. A number of construction projects on the base, such as the flight simulator building, are on schedule to be completed this construction season, while others aren’t scheduled for completion until 2020, Nissen says. “This project will change the history and trajectory of Eielson Air Force Base,” Nissen says. “The 354th Fighter Wing will be supporting a new mission with the most advanced fighter aircraft in the world. In addition, the base will be welcoming additional military members and their families, with an approximate 50 percent increase of the total base population.” The arrival of the F-35 squadrons will bring about 1,390 Air Force employees and www.akbizmag.com

September 2018 | Alaska Business

BUILDING ALASKA SPECIAL SECTION | INTERIOR

Since 1999, the Missile Defense Agency and the Corps’ Alaska District have collaborated to design and construct infrastructure to bolster the nation’s defense posture against foreignlaunched missile systems. The two agencies’ combined efforts to date have resulted in the design and construction of missile defense facilities in Alaska valued at about $1.26 billion.

BUILDING ALASKA SPECIAL SECTION | INTERIOR

seventy contractors to the North Pole area, resulting in an estimated 3,500 new people, including military family members. Each of the thirty-nine projects at the air force base was awarded independently, resulting in many different contractors supporting the construction and renovation, Nissen says. Among the companies awarded contracts are Watterson Construction, Unit-Bethel JV, Silver Mountain, Callahan-Watterson JV, Haskell-Davis JV, ALCAN Builders, Eklutna Construction, Bristol Design-Build Services, Arctic Slope Regional Corporation, Osborne Construction, and ASRC Builders. “Many of the larger military construction projects are contracted through the US Army Corps of Engineers, while smaller renovation contracts are handled through the local contracting office,” Nissen notes. According to the Fairbanks Economic Development Corporation, Department of Defense operations inject about $1.2 billion into the local economy. The military industry is the largest single contributor for the local economy and generates 20 percent of all jobs in the Fairbanks North Star Borough. Eielson Air Force Base is responsible for about 4,300 of the 16,000 jobs created by the Department of Defense in Fairbanks. Four induced or community jobs are created for every $1 million Eielson Air Force Base or Fort Wainwright bring into Fairbanks, Nissen says. Nissen says, given that the F-35 beddown is a consuming, multi-year effort, the air force base doesn’t see any other major construction projects on the horizon.

LRDR Phase II at Clear However, Eielson and Fort Greely are not the only military facilities in the Interior awarding multi-million dollar projects. Included in the military and veteran affairs budget

for federal Fiscal Year 2019 are funds tagged for the Long Range Discrimination Radar (LRDR) Phase II at Clear Air Force Station. The $174 million for LRDR Phase II brings the total construction investment at Clear Air Force Station since Fiscal Year 2017 to $329 million. In February, Anchorage-based STG Pacific was awarded a $24.3 million contract to reinforce the concrete foundation for the new LRDR system. The project to build a mission control facility with operations and maintenance space, utilities for the radar system, and environmentally controlled equipment areas was awarded in April. A joint venture between Unit Company and ASRC Builders secured the $122.9 million contract and began preparing the site in July. The LRDR equipment shelter foundation is expected to be awarded this year with a projected value of between $5 million and $10 million. Two other projects for the LRDR site are projected to be awarded next year. The LRDR power plant, valued at $120 million to $140 million, is expected to come through in March, while the LRDR maintenance facility, with a projected value of $9 million to $14 million, should be awarded in October. “I think that if you listen to what your own congressional delegation—Senator [Dan] Sullivan, Congressman [Don] Young, Senator Murkowski, and others—as they talk about Alaska and its importance to the nation, Ballistic Missile Defense is an important part of that,” Fairbanks Chamber of Commerce Director of Businesses Development Richard Hagy said in March. “You’ve got Fort Greely and its role in that. As soon as the LRDR is built and in place, we will also have a critical role in the Ballistic Missile Defense system in contributing to making that system as effective as possible.”

Economic Windfall Overall, government support both at the state and federal levels has poured out for the military buildup in Alaska. In June, US Defense Secretary Jim Mattis praised the work being done at Interior military facilities during a tour with Sullivan. Mattis described the interceptor missiles as a cornerstone of US defense, praising Eielson Air Force base for its preparation for the F-35s. “Notice we’re talking about how we’re going to incorporate it, we’re not talking about if it’s coming, and it’s coming,” according to Mattis. These construction projects provide a major boon to commercial construction in Interior Alaska, Nissen says. This is particularly true with regard to the North Pole area. According to North Pole City Services Director Bill Butler, the number of active building permits in North Pole has nearly doubled in recent years. There is now speculation that with military families arriving with the F-35 beddown and the increase in housing projects in North Pole, there could be enough demand to support an immediate-care medical facility as well as a megastore, such as Walmart. Non-Military Interior Construction Not every multi-million dollar project happening in the Interior is military. “There are several highway upgrade projects, all of which are largely funded with federal funds. Highway work was funded in last year’s state capital budget at the match requirement to sustain that program,” says Meg Nordale, president of GHEMM Company. “Private projects include the Interior Gas Utility off loading facility, Costco’s renovation of the existing Sam’s Club building, and several smaller deferred maintenance projects the [Fairbanks North Star Borough], school district, and University of Alaska Fairbanks are doing.” US Air Force Airmen with the Pacific Air Forces’ F-16 Demonstration Team and Eielson Air Force Base watch an aerobatic practice prior to Arctic Thunder 2018 at Joint Base ElmendorfRichardson. The PACAF Demo Team worked hand-in-hand with Eielson AFB to perform at the air show. Senior Airman Sadie Colbert

Alaska Business | September 2018 www.akbizmag.com

Senior Airman Sadie Colbert

GHEMM was part of the subcontractor team that Exclusive Paving, a Colaska company, put together to bid the North Pole water expansion project; the project was awarded to Exclusive Paving in December 2017. “GHEMM’s portions of work are in three locations: upgrades to the existing Highway Park pump station building; construction of a new pump station building on Peridot Street [and] supply and installation of a reservoir water tank at that same location; [and] we have put an addition onto the existing water treatment plant in North Pole and will supply and install equipment to expand the city’s treated water supply capacity,” Nordale says. GHEMM is also tapping into the growth of Alaska’s tourism industry. The company was hired by Holland America to build a new hotel at Denali Park as part of Holland America’s Alaska expansion of cruise travel.

The hotel is slated to be complete in time for the 2019 visitor season. “Interior Alaska is definitely experiencing a larger volume of work than other areas of the state,” Nordale says. The impact of large projects on communities in the Interior is resulting in the “creation of momentum, optimism, especially in light of military expansion in our area,” Nordale says. More than $1 billion of military contracts, in addition to other major government and non-government construction projects, is more than enough reason for those in the Interior to be optimistic about the region’s future. R

Isaac Stone Simonelli is a freelance journalist and former managing editor for the Phuket Gazette.

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US Air Force Pacific Air Forces’ F-16 Demonstration Team and contractors prepare two F-16 Fighting Falcons from Eielson Air Force Base for an aerobatic practice at Joint Base Elmendorf-Richardson. Senior Airman Sadie Colbert

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BUILDING ALASKA SPECIAL SECTION | INTERIOR

US Air Force Captain Jake Impellizzeri, the Pacific Air Forces’ F-16 Demonstration Team pilot, blasts off into the sky for an Arctic Thunder 2018 demonstration practice.

SPECIAL SECTION

Building Alaska

Building on Permafrost Changing climate is just another challenge for builders keeping it cool in the Arctic By Isaac Stone Simonelli

hen constructing in the Arctic or near-Arctic regions of the world where permafrost dominates, the adage “If it’s frozen, keep it frozen; if it’s thawed keep it thawed” provides a strong foundation. Doing this, however, is one of the greatest challenges for engineers and construction companies that specialize in building in some of the coldest places on Earth.

Frozen Foundations “The design of the foundation, which is the interface between permafrost and the building, can be directly related to the success of or failure of a building on frozen ground,” explains Bruno C. Grunau, chief programs officer at the Cold Climate Housing Research Center (CCHRC). CCHRC is an industry-based, private, nonprofit corporation with the mission to promote and advance the development of healthy, durable, and sustainable shelter for Alaskans and other circumpolar people. “Once the permafrost thaws, the foundation can sink, damaging the building it supports. The key to successfully building on frozen ground in the North is to maintain a nearconstant subsurface thermal regime where the foundation bears on the soil.” A poorly designed or poorly maintained heated structure can be the catalyst for repeated thawing and freezing cycles of the ground, causing it to heave, slough, and even creep— usually to the detriment of the building. “There are a myriad of things to consider when looking at a project on permafrost. I always first consider the importance of the project and the consequences of a failure,” Arctic Foundations President Ed Yarmak says. “And then, of course, there’s the budget, which turns into the usual constraint for many public projects. Budget and service life are the main drivers. Sometimes there’s trade-offs… and service life is compromised.” An early step in the design process of a project is to get good site data. Ideally, a team would be able to obtain the vertical temperature distribution down into the permafrost over the course of a year. “We hardly ever get that data because of schedules or budgets,” Yarmak says. “Engineers can make estimates, but then, that’s just another 38

Alaska Business | September 2018 www.akbizmag.com

BUILDING ALASKA SPECIAL SECTION | PERMAFROST The ASRC Vehicle Maintenance Shop in Deadhorse was designed with thermosiphon condenser risers. Architects Alaska

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September 2018 | Alaska Business

BUILDING ALASKA SPECIAL SECTION | PERMAFROST

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uncertainty in the design that needs to be taken into account.” What data they are able to collect allows a team to—among other things—determine if the site is thaw stable, which is generally a factor of how much ice is in the permafrost material. “If it is thaw stable, then standard construction techniques utilized for non-permafrost sites in cold regions can generally be used,” Yarmak says. “If it is not thaw stable, then engineers either design the structure using specialized materials and construction techniques to keep the heat balance negative or build the structure in a way that it can be maintained as the permafrost thaws and settles.”

Permafrost Permutations Though many think of permafrost as permanently frozen soil, it can be more broadly defined as any earth materials (granite bedrock in the mountains to silty soil on

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BUILDING ALASKA SPECIAL SECTION | PERMAFROST

the Tundra) that remain below 32 degrees Fahrenheit for at least two consecutive years. These back-to-back years of freezing temperatures are caused by a negative heat balance, meaning that more heat leaves the ground during the winter than is absorbed via geothermal heating and the summer sun. Two years, of course, is just a minimum requirement. Some of the permafrost in Alaska has been around since the Pleistocene Epoch (during which the Ice Age occurred), which is why there are areas on the North Slope where it’s 2,000 feet thick. “The ground surface will freeze and thaw every year over permafrost. That zone of surface freeze-thaw is the active layer,” Yarmak explains. “When the winter cooling is not sufficient to freeze the active layer to the top of the permafrost, a talik [a layer of unfrozen ground in a permafrost area] will be formed between the base of the active layer and the top of permafrost. Existence of a talik www.akbizmag.com

like this is generally an indicator that the heat balance has moved from negative to positive and that the permafrost is degrading.” The degradation of permafrost can happen both through climate warming and the construction of man-made structures on top of it. However, Arctic engineers have a number of methods to prevent permafrost from thawing below buildings.

Active and Passive Temp Control “There are many approaches to designing and building in a permafrost location,” Principal Architect for Architects Alaska Michael Henricks says. “Depending on functional, scheduling, and budgetary requirements for a project, one may employ a combination of approaches, almost all of them passive in their methods for keeping a structure’s heat out of the ground.” Passive approaches do not rely on electricity; they function either by elevating the structure

“The climate has been shown by scientists to be changing, becoming warmer—a situation that also has been observed by indigenous people living continuously in Arctic climates and deeply attuned to the environment. The planet is getting warmer, and thus permafrost regions are being impacted greatly.”

—Michael Henricks Principal Architect, Architects Alaska

September 2018 | Alaska Business

BUILDING ALASKA SPECIAL SECTION | PERMAFROST

“When it comes to saving money [and energy] to heat your home, the most cost effective approaches are generally increasing insulation in the building envelope and tightening the building envelope by air-sealing. At the same time, having a functioning ventilation system is critical to the health and safety of the occupants, as well as the well-being of the building structure.”

—Bruno Grunau Chief Programs Officer Cold Climate Housing Research Center

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above ground or through the use of refrigeration systems that employ fluids that have physical properties that change from liquid to gas at temperatures above and below 32 degrees, Henricks explains. As the gas rises, it releases heat above ground. As it does so, the gas condenses into a liquid, which falls back to the bottom of the system, where it again can collect heat, expand, and rise to release heat above the surface. The two primary forms of passive cooling systems are thermopiles (heat-syphoning stilts) and thermosyphons. “Thermosyphons are long, sealed tubes that are installed into the ground beneath the structure and the top is exposed to the cold winter air,” Grunau explains. “A phase changing substance within the pipe pulls the heat from the ground and releases it into the cold winter air. This system has no moving parts and requires no power to operate.” Whether thermopiles or thermosyphons are used in a project is the result of many factors, including functional requirements of the building. If stairs or ramps are going to hamper a building’s function, designers are forced to rule out using thermopiles, using thermosyphons instead. Thermosyphons are also preferred for buildings with a heavy floor load, since a slabon-grade system is generally more economic than a structurally supported floor. “On permafrost, a slab-on-grade with a system of non-frost susceptible gravel, insulation, and Thermoprobes (our trade name for nonload bearing thermosyphons) is usually more economic than a pile supported structural floor,” Yarmak says. “It’s also a bit more convenient to drive into compared with pile supported structures. If there is no non-frost susceptible gravel available, then the economics may change.” However, if the goal is to have the least impact on the landscape, leaving it in its natural

Alaska Business | September 2018 www.akbizmag.com

Architects Alaska

Aerial view of the Fairweather Deadhorse Aviation Center, built on permafrost.

technology, Yarmak points out that Arctic Foundations’ products are improved and that the company’s product line is currently larger than any other thermosyphon manufacturer in the world. “These devices are used to ensure a negative heat balance in the permafrost, thus keeping it from warming and losing strength,” Yarmak says. “Typically, insulation is also

used to minimize the heat gain into the permafrost, but not always. We believe that there will be an increase in the need for thermosyphons as the climate warms.”

Other Considerations Yarmak notes that the company is also seeing more applications for adding active refrigeration capabilities to passive thermosyphons to

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BUILDING ALASKA SPECIAL SECTION | PERMAFROST

state, piles or thermopiles are the best option, Henricks explains. “One wouldn’t want to bury the landscape surrounding the structure under a gravel pad if that is the driving force of the design,” Henricks says. “Residential related projects may often want to take this approach or eco-tourism lodges and the like.” Piles and thermopiles remain the most popular way to prevent thawing. Simple piling structures provide a certain level of protection to permafrost as they create a separation between the heat source and the frozen ground, providing a shadowing effect on the ground below the building and helping to block ground insulating snow from building up on the ground beneath, which leaves it exposed to extreme cold winter temperatures. “Erv Long, working for the US Army Corp of Engineers, developed the thermopile in the 1960s,” Henricks says. The thermopile is a passively refrigerated piling system that combines a pile foundation approach with passive refrigeration technology, enabling a thermal transfer process action to draw heat from the ground surrounding the pile. “There are now more than 900 installations of this and similar technological approaches in use today, and many more in design as we speak,” Henricks says. “Today, companies such as Arctic Foundations offer a variety of configurations of passive refrigeration technology approaches for the foundation design of structures over permafrost.” Though the thermopile isn’t exactly new

BUILDING ALASKA SPECIAL SECTION | PERMAFROST

“It’s difficult for some to understand that this material [permafrost] that seems to be as hard as concrete or stone is as fragile as a ripe peach on the surface. And surface disturbance can lead to much more than just eyesores—it can cause permafrost degradation, erosion, thaw slumps, and a multitude of other issues that can come back to cause problems with the structure.”

—Ed Yarmak, President, Arctic Foundations

reduce thermal impact on the permafrost and accelerate construction. Ground source heat pump technology is also rapidly expanding and becoming more and more efficient. “In this situation, one would install several hundred feet of plastic piping beneath a foundation,” Grunau explains. “A ground source heat pump circulates a fluid through those pipes and uses a refrigeration process to pull heat from the fluid and deposit that heat to the building as a heat source.” Another factor considered when preserving permafrost is a construction company’s approach to ground disturbance, as the natural state of the ground helps to protect permafrost. “It’s difficult for some to understand that this material [permafrost] that seems to be as hard as concrete or stone is as fragile as a ripe peach on the surface,” Yarmak says. “And

surface disturbance can lead to much more than just eyesores—it can cause permafrost degradation, erosion, thaw slumps, and a multitude of other issues that can come back to cause problems with the structure.” Whether it is desirable or necessary to build a compacted gravel pad over undisturbed ground surface is really a question of a building’s function or structural requirements and if the project owner wants the building site to be left in as much of a natural state as possible, Henricks notes. Though the right foundation is essential to building in Arctic and near-Arctic regions, there are two other major challenges to rural housing in the coldest parts of the world: ventilation and heating. “When it comes to saving money [and energy] to heat your home, the most cost effective approaches are generally increasing insulation

in the building envelope and tightening the building envelope by air-sealing,” Grunau says. “At the same time, having a functioning ventilation system is critical to the health and safety of the occupants, as well as the wellbeing of the building structure.” In homes with high humidity, moisture can condense on walls and create and environment for mold to grow. This mold can affect the respiratory health of families living in that home. Additionally, some molds can cause rot, which could undermine the strength of the building structure, he says. The best way to alleviate poor indoor air quality is to dilute indoor air with cleaner outside air. “Experts suggest changing the air inside your home on a regular basis, between onethird to one-half complete air changes per hour. That means moving all the air out of your house and replacing it with outside air every two to three hours. Often houses do this in the form of a bathroom fan, range hood, or heat recovery ventilator,” Grunau says. To help address both issues—high energy costs and poor ventilation—CCHRC developed the BrHEAThe system in 2011. “BrHEAThe combines heating and ventilation into one distribution system to provide fresh air and space heating to homes,” Grunau says. “Since development, it has been installed in homes in Anaktuvuk Pass, Fairbanks, Galena, Buckland, Point Lay, Brevig Mission, Minto, Bethel, and Tanana.”

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BUILDING ALASKA SPECIAL SECTION | PERMAFROST

Climate Change The challenges of construction in the north will continue to grow with the increasing effects of climate change. “The climate has been shown by scientists to be changing, becoming warmer—a situation that also has been observed by indigenous people living continuously in Arctic climates and deeply attuned to the environment,” Henricks says. “The planet is getting warmer, and thus permafrost regions are being impacted greatly.” Some structures built over permafrost decades ago, even elevated on traditional piles, are failing due to the warming climate, Henricks notes. However, not all degraded structures built on permafrost are victims of warming; many have simply outlived their design life, not been maintained properly, or were not designed properly, Yarmak points out. Nonetheless, Yarmak recognizes rapid changes in the Arctic. “With climate warming, the access road that was put in thirty years ago may not be suited for another thirty years of service. Things change, and they change rapidly when ice melts because water has no shear strength. More ponded water in low places absorbs more heat in summer and adds to the heat balance,” Yarmak says. In many places the increased heat is not enough to shift the balance of the permafrost, but it will increase the depth of the active layer, and if there was ice-rich material at the base of the active layer, there will be surface subsidence. “That soils investigation that was performed twenty-five years ago may not be valid for a new design at the site because of increased ground temperatures, perhaps the formation of a talik, or other issues. The active layer is going to be deeper because of the warmer temperatures,” Yarmak says, noting that on sloped sites with an active layer increasing in thickness there is greater possibility for development of an active layer detachment slide. Engineers struggling to get accurate estimates of what the climate will be like in twentyfive to thirty-five years as global warming rapidly increases compounds the issue. “We can use estimates from the climate modelers for this, but there is a huge variability in what the various models say,” Yarmak says. “Still, it’s better than a crystal ball. And then, there’s the weather.” Without a doubt, one way that climate change will impact Arctic construction is that it will drive up costs. “Piles need to be deeper or larger in diameter, insulation needs to be thicker or over a larger area, gravel pads and roadways need to be more robust, and the ice road season for tundra work will get shorter,” Yarmak says. However, where there is change there is a chance for growth, development, and innovation. “The flip side is that climate change offers economic opportunity to companies such as Arctic Foundations,” Henricks points out. R

SPECIAL SECTION

Building Alaska

The Bobcat of Juneau dealership offers customers the option to rent, lease, or buy. Bobcat of Juneau

Alaska Business | September 2018 www.akbizmag.com

By Vanessa Orr

t takes a lot of equipment to tame the Last Frontier—from bulldozers and skid loaders to excavators and forklifts, there is no lack of demand for construction equipment. For the companies that provide the machines for these jobs, it also takes a mastery of logistics and a lot of careful planning to make sure that the equipment that drives Alaska is ready and available for work. “When you’re talking to people down south, they really don’t get it—I’ll tell someone that our equipment is out on an island, and they’ll say, ‘Why don’t you just drive over and get it?’” laughs Colter Boehm, who co-owns Bobcat of Juneau with his father, Jeff Boehm. “Or they see that something is in stock in Anchorage and ask me to just run up there and grab it. They don’t understand the logistics of getting the equipment here and then out to the customer.”

Get There from Here No matter where in Alaska equipment is going, it almost always takes some ingenuity to get it there, especially when moving a twenty-fiveton excavator, for example. But the challenges start before the order even comes in, as heavy equipment and material handling dealerships have to figure out how to get stock into the state in time for construction, fishing, or even budget seasons. “Generally, we stock an array of the machines that we know we sell continuously so that our floor plan is sufficient with construction equipment like compactors and wheel loaders and material handling equipment like forklifts and pallet jacks related to the season,” explains Wayne Dick, president and sales manager at Independent Lift Truck of Alaska (ILTA). “But we also place industry specific orders as needed; prior to the fishing season, for example, we’ll bring extra machines in because we know that once the season starts, we’ll need what customers want right here, right now. “We also have to be prepared for the big run at the end of the year, when people realize that they need to spend the rest of their capital budgets,” he adds. “And when a new fiscal year starts in January, we work with our customers to make plans for spring deliveries.” ILTA has been serving the state since 1982 from its headquarters in Anchorage and locations on the Kenai Peninsula and Kodiak Island. Its primary customers include those in the fishing industry and the oil and gas industry. The company also provides construction equipment for building supply chains throughout Alaska. “We’ve been a Mitsubishi dealer for the past thirty-four years and a Caterpillar dealer for twenty-eight years,” says Dick, adding that the company also carries Jungheinrich, Manitou/GEHL, and Wacker Neuson products, among others. Equipment coming from American manufacturers and from countries including China and Germany is either shipped direct from the factories or staged at ILTA’s depot in Fife, www.akbizmag.com

September 2018 | Alaska Business

BUILDING ALASKA SPECIAL SECTION | HEAVY EQUIPMENT

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BUILDING ALASKA SPECIAL SECTION | HEAVY EQUIPMENT

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Washington, before being shipped to Alaska. The carriers used depend on each customer’s need and urgency of delivery. “You need to make sure that you have equipment in the pipeline because getting equipment from the manufacturers can take time—for example, you need to order a standard forklift fifteen to sixteen weeks out,” says Dick. “This is why it’s so important to continually be in touch with the customer, especially at the end of the year when they’re looking at the next year’s budget,” adds ILTA’s Director of IT & Communications Wendy Whitten. Getting the product to Alaska is only half the battle. Once it is rented or sold, it needs to be transported to the customer’s site, which could be quite remote. “Our equipment coming into Juneau arrives on a barge, but going out might require a mix of using the ferry, a barge, or flying smaller items,” says Boehm. “In Southeast, we have a landing craft on hire to help us do local moves. “For example, we chartered a landing craft to deliver five or six pieces of equipment to a project on a remote island in the Gulf of Alaska,” he adds. “The equipment ended up being gone for a month, even though they only needed it for three or four days. But when a customer needs it right now, you have to figure out how to get it there. Some companies may deliver in three to five days, but we’re very open-minded when our customers need something ASAP—even if that means chartering a plane to deliver it that day.”

Alaska Business | September 2018 www.akbizmag.com

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President and Sales Manager Wayne Dick (left) and Vice President and Operations Manager Gerry Dick (right) of Independent Lift Truck of Alaska. ILTA

September 2018 | Alaska Business

BUILDING ALASKA SPECIAL SECTION | HEAVY EQUIPMENT

Yukon Equipment Inc.’s fleet/logistics manager is in charge of making sure that inventory arrives in Alaska on time and then makes it to where it needs to go. “We bring up at least a piece a week on the barge line from Seattle or Tacoma, and then truck it in-state or take it to meet barges to outside communities,” explains Charles Klever, president of Yukon Equipment. “For example, we might truck a piece of equipment to West Dock in Prudhoe Bay and then send it to more northern points on a barge that only runs once a year. If it’s going out west, we might use Alaska Marine Lines, Sampson Transport, or the Alaska Marine Highway; for example, we’re sending a machine to Kodiak this week on the Whittier ferry, which makes it less expensive for our customer. “Next week, we’re taking a rock crusher in a Herc and delivering it to Anaktuvuk Pass,” he continues. “We do everything from putting it in the back of our pick-up to flying in a Herc to shipping by barge or truck. And our logistics manager has been doing this long enough that she knows the places to go to get the best freight rates.” While cost is important, timing is everything when it comes to shipping machines across the state. “In mid-September, the barges quit running, so if you miss the barge out west, you have to take machines apart to put them on planes and fly them out,” says Dick. “Customers can’t wait until the last minute to order equipment because those last barges are full—and good luck getting a spot.”

BUILDING ALASKA SPECIAL SECTION | HEAVY EQUIPMENT

“In mid-September, the barges quit running, so if you miss the barge out west, you have to take machines apart to put them on planes and fly them out. Customers can’t wait until the last minute to order equipment because those last barges are full—and good luck getting a spot.”

—Wayne Dick President and Sales Manager Independent Lift Truck of Alaska

“Still it happens every year, so we restock to be ready for the hit that comes when everyone realizes that the barges are going to shut down,” he adds. “It’s the nature of the business—you have to plan ahead.”

Sales and Service Customers have numerous options when it comes to procuring project equipment, including buying the items outright to renting what they need on a short or long-term basis. There is also the option of renting to own.

Wayne Dick | ILTA

The Independent Lift Truck of Alaska facility in Anchorage.

Yukon Equipment, which has been serving Alaska since 1945, carries more than forty products on its line card, including Case Construction equipment, Oshkosh snow products, and Elgin and Vactor industrial products. Roughly half of the company’s business comes from public entities such as the State of Alaska and its municipalities, cities, and villages, and the other half comes from road and small construction contractors. Yukon works with oil and gas companies and mining companies as well. “We offer a full range of buying, renting, and leasing programs, as well as financing available in-house,” says Klever. “Our new inventory comes from manufacturers that we are authorized dealers for, like Case Construction. We are a stocking dealer for some other manufacturers, so we keep their products on the shelves, and if we’re a non-stocking dealer for something a customer wants, we’ll order that manufacturer’s products on demand.”

Yukon does an active market in trade-in and used equipment, buying from customers within the state and from auctions and companies outside. “We try to figure out what we will need for our rental fleet, and what fits into our ‘return on asset’ criteria,” Klever says. “Our biggest challenge is pricing—keeping the margins in line,” he adds. “Certain larger dealers offer discounts not adequate for return on investment, which spoils the rental market. We can’t afford to give something away; if we can’t make an adequate return, then we can’t bring in equipment for the rental fleet.” One of the benefits of working with Yukon is that Klever makes a point of trying to provide the best deal. “Though I’m the president, I’m also involved in the negotiation of every transaction in the rental and sales portion of our existing inventory,” he says. “I have a background in finance, so I work to add value to the process. If a person wants to rent equipment with the option to buy it after a couple of months, I make sure that they get the lowest interest rate possible and the best terms.” According to Dick, roughly 80 percent of ILTA’s customers utilize financing, whether through the manufacturers or from other sources. “We work with several resources that can provide financing, and with every quote we offer financing as well as a rent-to-purchase option,” he says. “Some manufacturers, like Wacker Neuson, provide their own financing; for something like used equipment that doesn’t qualify, we work with Wells Fargo Manufacturers Group to help. If a customer

AnchorageHeartWalk.org 50

Alaska Business | September 2018 www.akbizmag.com

“The biggest opportunity I see right now is in military spending—it appears to be pretty big and this not only affects housing but infrastructure on the bases,” says Klever. “Luckily, the federal money spent will more than compensate for the dried-up state coffers. “Oil and gas is still a big question mark; I don’t know if they’ll increase the money they’re spending on investments on the Slope or not,” he adds. “The state is definitely still struggling, and I don’t know when that will change,” agrees Boehm. “But the economy is starting to pick up, and oil and gas is starting to pick up, which may present a good opportunity in the next year or two. “On a positive note, the private sector is taking off; Washington and Oregon are going

crazy, which also affects us. We’re working hard to try to capture more of the homeowner market by taking the intimidation out of visiting a dealership; it doesn’t matter what your knowledge level is, we treat every customer the same.” Providing customers with the machines they want, when they need them, takes a lot of effort on the part of Alaska equipment dealerships, and from the sound of it, they’re up to the challenge. R

Vanessa Orr is a freelance writer and former editor of the Capital City Weekly in Juneau.

Areas for Growth As Alaska’s economy continues to shift, so do the markets for equipment dealerships. www.akbizmag.com

September 2018 | Alaska Business

BUILDING ALASKA SPECIAL SECTION | HEAVY EQUIPMENT

isn’t approved for this type of financing, we might be able to do something in-house.” As a full equipment dealership, Bobcat of Juneau offers customers the option to rent, lease, or buy, and also helps customers decide exactly what they need. Now in its eleventh year, the company, which is the official dealer for Bobcat, Husqvarna, Terex and more, operates two satellite stores in Haines and Ketchikan. The company’s customer base is extremely diverse and includes everything from very heavy construction; oil and gas; and federal, state, and local municipalities to homeowners looking to clear building lots. “One of the things that makes us different is that we’re more willing to deal with the homeowner market than a lot of other dealerships,” says Boehm. “One minute I’ll be talking to a forty-year veteran construction worker about the specific type of equipment he needs and two minutes later talking to an older lady about how to run a rented excavator. “We strive to be very efficient in sales, service, and rental because there is so much carryover from one market to the next,” he adds. “You need to be able to do all three really well.” All three companies (Bobcat of Juneau, ILTA, and Yukon Equipment) hire factorytrained mechanics to make sure that they can fix whatever they sell—or even products that have been purchased elsewhere. They also take custom orders, whether through the manufacturers they represent or in-house. “We get special orders quite often, and, if we can’t provide it from our manufacturers, the dealership will accommodate adding or subtracting from equipment to fit specifications,” says Dick. “Our team has a lot of experience, so they can customize just about anything.” “We’ve had some challenging cases—for example, we worked with a disabled customer who could only move his left arm and one foot and wanted to use a Bobcat skid steer for mowing and snow removal,” says Boehm. “We worked with him to figure out how to get around the control options. We also modified an ATV for a local tour company to create extra seating capacity. “When people ask us if we can build some odd attachment, we never say no, at least until we try it,” he laughs. “There are so many different industries here, especially in Southeast, that we’re servicing a very diverse group of people with diverse needs. You never know what will walk in the door.” According to Klever, being willing to go above and beyond is one of the reasons that customers come back. “Our company is smaller in size compared to a couple of others here, so we try to make up for that by having a staff that is extremely customer serviceoriented,” he explains. “They’ll come in on weekends if need be or stay late at night so someone can bring in a piece of equipment. We do more to make up for other companies’ size advantage—we’re like Croatia in the World Cup.”

TRANSPORTATION

Customized Shipping LTL, LCL, and add-on services By O’Hara Shipe

hen shipping freight or cargo, innovation often lies within less than truckload (LTL) and less than container load (LCL) providers and the specialty add-on services that make interor intrastate shipping possible. There are several different perspectives as to what the terms LTL and LCL mean. For example,

some carriers combine the load of two to six different clients’ shipments, and since bundling shipments is LTL/LCL in the broadest sense, they advertise that they offer LTL/ LCL services. Other carriers break up larger shipments into smaller loads—typically due to weight restrictions—and call the service LTL/LCL.

LTL in Alaska In Alaska, the characterization of LTL services is not muddied by technicalities. According to Alaska Trucking Association Executive Director Aves Thompson, the definition of LTL is unambiguous. LTL refers to freight that weighs more than 150 pounds, which is the maximum limit for large-scale parcel services such as USPS, UPS, and FedEx; however, the freight from one customer cannot fill an entire truckload. Typically, shippers would contact either a carrier or a consolidator to pick up their freight. The freight would then be consolidated with other freight going in the same direction and, as Thompson puts it, “away you go.” With forty years of experience in the transportation industry, Thompson offers a wealth of knowledge. In Thompson’s opinion, there are very few downsides to taking advantage of companies that offer LTL services. “Small stores like an Anchorage hobby shop or maybe a dress shop might need to ship five or ten boxes of product that are over the 150-pound weight limit, so this is an affordable way for them to consolidate on shipping. Larger companies can also take advantage of the service if they have limited special orders from the Lower 48,” he says. He goes on to say that the shipping price per pound might seem high using an LTL option, but in the end it typically works out to being less expensive than purchasing a full container for a limited load. However, Thompson

Alaska Business | September 2018 www.akbizmag.com

notes that there may be an obstacle to taking advantage of the service. “[Small and large shippers have] the opportunity to have their freight consolidated with other freight to take advantage of some economies of scale. [But there is] a requirement that there has to be a brick-andmortar terminal and a carrier to pick up and consolidate the freight.” www.akbizmag.com

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“Small stores like an Anchorage hobby shop or maybe a dress shop might need to ship five or ten boxes of product that are over the 150-pound weight limit, so this is an affordable way for them to consolidate on shipping. Larger companies can also take advantage of the service if they have limited special orders from the Lower 48.”

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September 2018 | Alaska Business

Sourdough Express has been moving freight through Alaska for more than one hundred years. James “JimBob” Schneider

Sourdough Express In Alaska there are many companies that offer LTL services, such as Alaska’s oldest transportation company, Sourdough Express. Founded in 1898 in Canada, Sourdough Express transferred hands to the Alaskan Norum family in

1920 and has been family-owned ever since. Currently, the company is run by the Norum sisters and their brother Josh Norum, who serves as the director of operations. While Sourdough Express has been moving freight in Alaska for more than one hundred

years, it has only been a decade since the company changed the focus of its shipping services. “About ten years ago we were a full-trailer load company that focused especially on the North Slope. But now that that market has

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Alaska Business | September 2018 www.akbizmag.com

Richard Mustain

Sourdough Express truck on the Alaska road system.

begun to slow down and become more competitive, we have begun moving into the LTL market. Now we focus a lot on [shipments] between Fairbanks and Anchorage,” says Josh Norum. The demand for LTL services is immense; Norum estimates that approximately 40 percent of the company’s clients opt to use LTL. While Sourdough Express focuses on serving the Alaska market, the company also conducts business with companies from the Lower 48 that supply Alaska businesses. As a part of its dedication to an Alaskacentric business model, Sourdough Express uses an elaborate system of pick-ups and consolidation to help keep costs low. “We have routes set up for the end of the day, so we can do scheduled pick-ups based on when the customer needs the freight delivered. This helps us avoid going out to just pick up one box at a time,” Norum says. Once the freight has been picked up, it is dropped off at one of the Sourdough Express terminals to be sorted based on location and delivery date before being pallatized. To avoid duplication of work or unnecessary steps, the freight is loaded on the truck in such a way that is can be easily unloaded at each of the carrier’s carefully selected stops. “Our terminals have doors that accommodate two or three trailers at once, so our staff will start loading based on their experience. They’ll say, ‘We know this customer needs this freight at a certain time,’ so they will load it

“We have routes set up for the end of the day, so we can do scheduled pick-ups based on when the customer needs the freight delivered. This helps us avoid going out to just pick up one box at a time.”

—Josh Norum Director of Operations Sourdough Express

first or last. Or, ‘We know these customers are close to each other near Fairbanks.’ They will use that knowledge and experience to load the trailers so when it does come to Fairbanks, we can efficiently unload and deliver the freight to our customers,” says Norum. He believes that this intricate level of planning and industry experience are what set Sourdough Express apart. “It’s a pretty hands-on process, and it’s definitely not something you can just jump into and be good at,” Norum says. “Most people who ship LTL are looking for the most cost-efficient way to do it because efficiency is the only way you can make money as an LTL carrier.”

American Fast Freight Ground transportation of freight is only one part of the equation, especially for Alaska’s many communities only accessible by air or sea. This is where over-the-water LTL/LCL services like those offered by American Fast Freight (AFF) are important. Just like its ground counterpart, over-the-water services hinge on efficient consolidation of freight for multiple customers—an AFF specialty. With multiple weekly sailings and brick-and-mortar terminals in three Alaska cities, AFF has LTL/ LCL transportation down to a science. “Our customers ship everything from personal items like ATVs and cars to specialty commodities like car batteries and building supplies,” says AFF Global Logistics VP of Alaska Operations Craig Forbes. To accommodate the variety of freight they handle, AFF also offers temperature protected environments. Their 100 percent cold-chain service ensures that cargo never leaves a temperature protected environment, keeping perishable items fresh. Receiving doors are also directly connected to refrigerated environments. The company operates temperature protected terminals in California, Chicago, Hawaii, and Jacksonville, in addition to Alaska. In addition to AFF’s experience handling specialty products, the company has proven experience and presence in Jones Act markets, which include Alaska, Hawaii, Guam, and Puerto Rico. The Jones Act requires that all

Alaska Business | September 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.

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“I come from the standpoint that there aren’t any cons to using our service because there’s just so much value for our customers—we offer custom logistics programs and 100 percent temperature protected environments; we’re hazmat certified; and we’ve been servicing the Alaska market for more than thirty years.”

—Craig Forbes VP Alaska Operations, AFF Global Logistics

goods transported by water between US ports be carried on US-flagged ships that are constructed in the United States, owned by US citizens, and crewed by US citizens and US permanent residents. Some critics of the act have claimed that it drastically raised maritime shipping rates to Alaska, Hawaii, Guam, and Puerto Rico. However, changes to the act are not currently anticipated, which is why AFF has worked hard to become fully versed in the act’s intricacies. “From a service standpoint, we have all the trained personnel, equipment, experience, and established relationships with the carriers, which is a huge value-add for our customers,” Forbes says. AFF works directly with customers to offer competitive pricing. Because the cost of fuel and tariffs regularly change, AFF does not offer one-size-fits-all pricing, but Forbes says this allows AFF to provide customers with the best possible value.

As far as cons for using LCL services, Forbes doesn’t see any. “I come from the standpoint that there aren’t any cons to using our service because there’s just so much value for our customers— we offer custom logistics programs and 100 percent temperature protected environments; we’re hazmat certified; and we’ve been servicing the Alaska market for more than thirty years.”

The Right Carrier American Fast Freight and Sourdough Express are far from the only LTL/LCL options in Alaska. Lynden Transport offers expedited routes via Washington, Oregon, California, and Western Canada. Old Dominion Freight Line offers steamship service with highway connections from the Lower 48 to more than twenty Alaska cities including Anchorage, Fairbanks, Kodiak, and Prudhoe Bay. They also offer a

rate estimator online that calculates rates based on various criteria including weight, destination zip code, and add-on services. Seattle-based Estes Express ships LTL to Alaska and provides seasonal “keep from freezing” services for an additional charge. Award-winning Span Alaska, which was named the Nasstrac Carrier of the Year for Specialty LTL, is another carrier option. With more than forty years of experience in the Alaska market, Span Alaska has developed strong relationships with both maritime carriers and trucking companies to provide top-notch services to their clientele. No matter the location or cargo needs, there is a shipping company that can meet those needs whether relocating a beloved car or filling the freezers of Anchorage’s finest restaurants. R O’Hara Shipe is a freelance writer in Anchorage.

Alaska Business | September 2018 www.akbizmag.com

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MINING

Rock Steady Support services keep mining in motion By Oâ&#x20AC;&#x2122;Hara Shipe

Geologist Jackie Rowley (far right) examines a core sample. Fred Deussing

Alaska Business | September 2018 www.akbizmag.com

n Alaska there are six actively producing mines, two projects in permitting, and an additional four advanced exploration projects in play in 2018. According to a March 2018 report compiled by the McDowell Group, the total value of mineral exports accounted for 35 percent of Alaska’s total exports in 2016 at

a value of $1.5 billion. The report also indicates that there was $110 million spent on exploration and $213 million spent on mine construction and other capital investment in 2017 alone. More than stimulating the Alaska economy through an influx of cash, the mining industry provides much needed

jobs to Alaskans living in rural communities. For example, more than 50 percent of the 550 year-round jobs at Red Dog Mine are filled by NANA shareholders. And NANA is not the only Alaska Native corporation to take advantage of such partnership opportunities. Iliamna Development Corporation, Calista

“Oftentimes a client will want to have preliminary research conducted and data collected in order to justify the expense of the added permitting and regulations associated with drilling and mining.”

—Michelle Johnson Chief Operating Officer, Alaska Earth Sciences

Corporation, and the Kuskokwim Corporation have all worked to develop businesses that serve the mining sector. While their names aren’t always as well known as the mine owners and operators, there are many companies that provide vital services to keep the mining industry moving forward.

Preliminary Research and Data Collection Founded twenty-six years ago, Alaska Earth Sciences (AES) provides consulting expertise to promote, manage, and support mineral resource and exploration development in Alaska. Through a suite of service offerings including geotechnical engineering, logistics, geographic information services (GIS), permitting assistance, and equipment rental, AES can provide the background services that enable successful, efficient, and cost-effective mining. “Oftentimes a client will want to have preliminary research conducted and data collected in order to justify the expense of the added permitting and regulations associated with drilling and mining,” says Michelle Johnson, chief operating officer for AES. AES has a team of four geologists who work in the field to conduct regional scale mapping and rock sampling. The team also makes geologic observations and collects soil samples that are sent to a laboratory for analysis. Once analyzed, the information is compiled into a rudimentary geological map for AES’s clients. This service is integral to the planning process for entities interested in mining in Alaska because it gives a rough estimate of the viability of producing an active mine. If the company chooses to move forward, AES will then return to the site to collect more samples at a decreased spacing and employ their specialized geophysical tools to craft a detailed map. “There is a whole array of tools we can use, and we typically work with a geophysical www.akbizmag.com

September 2018 | Alaska Business

Three geologists traverse the Genesis copper-nickelplatinum group element project, with Mt. Sanford in the background.

Avalon Development Corp.

Geologist Jon Findlay examines copper-nickel-platinum-palladium mineralization at the Genesis copper-nickel-platinum group element project, Chugach Mountains, in Southcentral Alaska.

contractor to target the data that we want collectedâ&#x20AC;&#x201D;typically then we would progress to a drilling stage to collect core samples,â&#x20AC;? says Johnson. She emphasizes the importance of using geophysical mapping tools prior to drilling not only because of its cost effectiveness but because it also eliminates the need for ground disturbance.

Alaska Business | September 2018 www.akbizmag.com

A Culture of

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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.

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“Geophysical is a passive data collection, so you don’t do any ground disturbances and you aren’t collecting any soil, rock, or water samples. The equipment used takes readings of magnetic polarization refraction, which lets you read certain subsurface characteristics that can help you make an informed decision,” says Johnson. According to Johnson, AES clients mine for a variety of materials, including wellwww.akbizmag.com

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

September 2018 | Alaska Business

Geologist Meredith Guhl poses in front of a rock formation in Southeast Alaska.

Contracts and Commodities Based in Fairbanks, Alaskan-owned Avalon Development Corporation provides a range of services such as permit acquisition, contract management, drilling program management,

and leasing. Avalon has twelve properties that are available for acquisition, lease, or joint venture. Avalon President Curt Freeman says that the most common services rendered by the company are based on early exploration.

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known commodities in Alaska such as copper, gold, and silver, as well as less familiar end-products including graphite and industrial minerals. The company’s clients are as diverse as the minerals they mine for. Over the years, AES has worked with junior exploration companies like Constantine Metal Resources and Metallic Resources that perform work early in the exploration process, looking at historically producing mines for third-party entities. According to Johnson, there are more junior mining companies than major, but that number has been slowly shifting. When they are not working with smaller companies, AES provides services to state agencies, Alaska Native corporations, and international mining companies. “One of the biggest challenges to providing exploration services is the environment in which we are working—the literal wilderness. We don’t have a lot of infrastructure, so that’s one of the reasons AES focuses so much on the early processes, so we can be literal first boots on the ground and engage the local community while identifying what resources are there. There are significantly, significantly reduced access points as compared to the Lower 48,” says Johnson.

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“We do mostly early stage work, so some of the things that people call us about are picking up a new property and they need somebody to compile existing data and put together an exploration program to tell them what to do next,” says Freeman. Like AES, Avalon collects rock and soil samples, but more of their efforts are spent conducting first exploratory drilling to find the resources that might be available on a given project. With a wide spectrum of mineral grades and tonnage, Freeman believes planning and proper drilling for core samples can make or break a mining project. “There are a variety of things that can make a target attractive from a mining sense. There’s everything from Fort Knox, which is very low grade with less than a gram of gold per a ton of rocks, to Pogo that has 15 grams of gold in a ton of rock. On the other hand, the base metal mines tend to be 10 or 15 percent total lead or copper. So, there are different kinds of economics and it’s a pretty wide spectrum of possibilities,” explains Freeman. Regarding Fort Knox, less than a gram of gold in a ton of rock might seem unfeasible, but as Freeman explains, the mine is quite profitable because its accessible location cuts down drastically on transportation costs. This is one of the reasons that Avalon provides budgeting services to their clients. The company’s extensive knowledge of the Alaska landscape is an asset to clients when it comes to determining overall cost-effectiveness, and it is an asset Freeman has used creatively. “Back in 2001 metals were a harder sell because the value of every metal was down and the industry was sort of flat on its back. So, we came up with a system of comprehensive field exploration with a unique shared risk budget management system,” says Freeman.

Alaska Business | September 2018 www.akbizmag.com

CROWLEY FUELS

DEPENDABILITY NOT DOWNTIME

—Michelle Johnson Chief Operating Officer, Alaska Earth Sciences

The unique system counteracts those instances when the project completion incentives don’t align for the mine operating company and geologic consultants. For instance, a mining company’s primary aim is to get as much done for the best price possible, whereas from a consultant’s point of view, the longer the project takes, the more money they stand to make, says Freeman. To offer peace of mind to their mine operating clients, Avalon developed a system in which a budget for a defined scope of work is agreed upon and, if the budget goes over, Avalon pays the entirety of the overage. If Avalon comes in under their bid price, then their client pays Avalon half of the price differential. “To my knowledge, nobody offers something similar, and some days I wonder if I am completely insane for offering it, but if we run things efficiently then we benefit from that and the client is happy because their project comes way under budget,” says Freeman with a chuckle. Betting on the efficiency of his crews isn’t the only calculated challenge that Avalon faces. According to Freeman the biggest challenge the company encounters is getting the story out there that there is a whole lot more in Alaska than the old placer mines for which the state is famous. One thing that has Freeman excited is the presence of cobalt, which has gone from being a metal of little importance to being sold for $40 a pound. “[Cobalt] is a metal that is being used for car batteries and electric vehicles and that has driven its price up almost three-fold! I make sure to follow those trends on a worldwide scale because if you don’t you’re going to be missing out [and] end up behind the eight ball—so you better have that kind of industry knowledge tucked away in your back pocket for when someone needs it,” Freeman says with a smile. R

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O’Hara Shipe is a freelance writer in Anchorage. www.akbizmag.com

September 2018 | Alaska Business

SPECIAL SECTION

Alaska Native

Shareholders from seven of the twelve ANCSA Regional Corporations display traditional clothing, jewelry, and headdresses: (left to right) Francisca Demoski, Bristol Bay Native Corporation; Ana Swenson, Bering Straits Native Corporation; Elena Kosbruk, Koniag, Inc.; Tatiana Ticknor, Sealaska; Zachariah Martin, Ahtna, Inc.; Ashley Christensen, Chugach Alaska Corporation; Kally Greene-Gudmundson, NANA Regional Corporation.

Alaska Native Regional Corporation Review Reaching for the future where “opportunity abounds” By Julie Stricker

iscal year 2017 marked another year of growth for Alaska’s Native Regional Corporations, which brought in billions of dollars to the state and employ tens of thousands of Alaskans. The corporations were created under the 1971 Alaska Native Claims Settlement Act (ANCSA), which sought to answer aboriginal land claims and allow the construction of the transAlaska pipeline to proceed. Under ANCSA, Alaska’s Native peoples were given title to 44 million acres of land and $963 million. Twelve regional corporations and more than 200 village corporations were formed and tasked with dual mandates: create economic 66

opportunities through for-profit enterprises and support shareholders through educational opportunities, scholarships, elder benefits, and social and cultural programs. Today, their reach both extends around the globe and focuses on business opportunities that directly benefit shareholders within their respective regions. Some have even set up funds to invest in local businesses. Presented here are some highlights from fiscal year (as determined by each corporation) 2017.

Ahtna, Inc. Glennallen-based Ahtna, Inc. recorded another successful year in 2017. Its revenues reached $238 million, a 9 percent increase compared to 2016, and its $7 million in net income is the highest in the corporation’s forty-fiveyear history. It is owned by more than 2,000 shareholders, the majority of whom are Ahtna Athabascan. Ahtna’s subsidiaries are grouped into four industry segments: government and technical

contract services, construction and pipeline services, resource development, and real estate. Government service contracts form the bulk of Ahtna’s revenue, 82 percent. The corporation also provides services to commercial customers. Its 2017 revenue increased due to the continuation of existing contracts and additional contract rewards primarily in its government and technical sector. Ahtna continues to look for ways to diversify its portfolio, with the aim that no one sector comprises more than 50 percent of its business. One of Ahtna’s biggest local projects was the Tolsona No. 1 natural gas exploration well that it drilled near Glennallen in an effort to diversify its business activities and provide a local energy source. That effort was unsuccessful, however, and Ahtna has discontinued exploration activities. The organization’s 1.77 million acres of land remains its greatest resource. Ahtna plans to develop those lands for tourism and recreation, mineral extraction, oil and

Alaska Business | September 2018 www.akbizmag.com

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ALASKA NATIVE SPECIAL SECTION | 2017 IN PERSPECTIVE

Subsidiaries operate in several business lines: government operations, maintenance contracting, civil construction, real estate, fuel sales, gravel sales, and mechanical contracting. Contract revenues provide the largest share of revenue, with Aleut Management Services at the forefront. In FY2017, Aleut Management Services reported contract revenue of $113.6 million, about 31 percent of the corporation total. The Aleut Corporation has nearly 4,000 shareholders. The corporation made $1.163 million in donations to charitable and not-forprofit entities that benefit shareholders and descendants, including $900,000 to The Aleut Foundation. In FY2017, the Aleut Foundation awarded 198 scholarships totaling $667,417. The foundation also provides career development opportunities, internships, and leadership opportunities. The Aleut Corporation distributed more than $2.5 million in dividends and elder benefits in FY2017.

Elena Kosbruk is wearing Alutiiq/Sugpiaq regalia, representing the Koniag region.

gas development, timber, land trusts, and carbon sequestration. A forest carbon offset program would continue over the course of a century and provide job opportunities for generations. Ahtna acquired AAA Valley Gravel in 2016, which is strategically located to support transportation projects in the MatanuskaSusitna Valley. In FY2017, Ahtna reported spending $12.8 million on shareholder benefits, including $1.5 million in dividends, $8.7 million in wages and benefits, and $2.2 million for charitable contributions, burial assistance, cultural camps, and scholarships. Ahtna is also exploring the possibility of opening a year-round resort outside Denali National Park. 68

Aleut Corporation While 2016 was a good year for The Aleut Corporation, 2017 was even better. Total revenue reached $211.8 million, the highest in its history and 53 percent more than its 2015 results. The corporation, with a land base on the Alaska Peninsula and Aleutian Islands and headquartered in Anchorage, reports a net income of $11.1 million. Every Aleut Corporation was profitable in 2017, the first time since 2011. In a letter to its shareholders, CEO Matthew Fagnani says the board of directors and management met two years previously to focus on how to rebuild its subsidiaries so their management teams would be more profitable. Their focus was on increasing subsidiary operating income by improving gross margin at the project level; streamlining administrative services; and increasing business development.

Arctic Slope Regional Corporation Arctic Slope Regional Corporation (ASRC) is one of the state’s most successful businesses. The corporation, with a land base on Alaska’s North Slope and corporate offices in Utqiaġvik and Anchorage, reports total revenue of $2.6 billion in FY2017. Nearly half of ASRC’s revenue comes from government services, with petroleum refining and marketing accounting for another quarter. Energy support services, industrial services, construction, and resource development make up the rest of its diverse portfolio. In late 2017, the corporation marked another milestone by surpassing $1 billion in dividend payments to shareholders since the corporation was formed in 1972. ASRC has more than 12,000 Iñupiat shareholders. In 2017, ASRC won a long-fought victory when the coastal plain of the Arctic National Wildlife Refuge was opened to responsible oil and gas development under a provision in the Tax Cuts and Jobs Act. The corporation, along with Alaska’s congressional delegation and other key players, fought to open the coastal plain for nearly forty years. ASRC also won an Emmy Award for its long-format documentary “True North, the Story of ASRC” from the Northwest Chapter of the National Academy of Television Arts & Sciences. The documentary shares the story of the company’s early leaders, from their fight for land before statehood to the signing of the Alaska Native Claims Settlement Act to today’s planning process to expand opportunities for ASRC’s shareholders, the corporation’s president and CEO says in a news release. “In the fewer than fifty years since our incorporation, ASRC has grown into the largest locally-owned and -operated business in Alaska, and that was no accident,” says Rex A. Rock Sr., ASRC president and CEO. “This production really highlights the decisionmaking process from our early leaders, based on their Iñupiaq values, that led to our success, and I’m honored the documentary is being so well received.”

Alaska Business | September 2018 www.akbizmag.com

spouses. BSNC is also helping prepare tomorrow’s leaders for the workforce by providing paid internships and professional development training to qualified shareholder or descendant students each summer. BSNC values and supports programs and organizations that make a positive difference in the region’s communities and the lives of Alaska Native people. BSNC is a major supporter of in-region nonprofits, including the Bering Straits Foundation, NACTEC, the Bering Sea Women’s Group, and the Nome Emergency Shelter Team.

Bristol Bay Native Corporation In its 2017 annual report, Bristol Bay Native Corporation (BBNC) notes that its “Fish First” philosophy, on which its culture is based, has been a guide for the corporation’s operations. “In many ways, BBNC is still in startup mode. We’re still exploring, discovering, and identifying new opportunities. And opportunity abounds. Now that we’re a global company, we get to think globally. And the traits that have guided us from the start continue to resonate as we reach for the future.” Government contracting remains a core growth area for BBNC, which partners with village corporations in the Bristol Bay region to help them “compete and thrive” in the federal marketplace. BBNC has a diverse portfolio, including government services, petroleum distribution, construction, and tourism. It plans to further explore renewable energy prospects

in the region in an effort to lower the cost of living for residents. BBNC started with three million acres of land and $33 million and now has businesses with about $600 million in assets, 4,300 employees, and 10,000-plus shareholders. Today, the corporation has business ties to all fifty states and eleven foreign countries. Its investment portfolio’s market value is $200 million and BBNC has distributed more than $200 million in shareholder dividends. For 2017, BBNC reported $1.659 billion in corporate revenues, with net earnings of $41.1 million. It paid $18.8 million in dividends. Two subsidiaries in BBNC’s petroleum distribution sector brought in revenue of $592.7 million and its industrial services component, which services the oil and gas industry in Alaska and North Dakota, showed a loss in FY2017, in part due to the global decline in oil prices and a “fixed abandonment loss” of $8.9 million from Peak. In 2017, BBNC acquired a number of tourismrelated businesses in the Katmai region that are renowned for their world-class fishing and bear-viewing opportunities. The corporation continues to look for opportunities to grow its tourism operations in the Bristol Bay region.

Calista Corporation Over the past eight years, Bethel-based Calista Corporation has more than doubled its annual revenue, which exceeded $480 million in FY2017, slightly less than 2016. Pre-tax income was $33.4 million. The corporation

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ALASKA NATIVE SPECIAL SECTION | 2017 IN PERSPECTIVE

Bering Straits Native Corporation Nome-based Bering Straits Native Corporation (BSNC) is looking to the future and asking shareholders to establish the Bering Straits Beringia Settlement Trust this fall. The trust would allow the corporation to set aside funds for the distribution of benefits, with favorable tax treatment. “We have been fortunate that our business development and support staff have had success in securing both government and commercial work, which has allowed us to focus on shareholder hire and development, hire and retain top quality employees, and increase the benefits we provide to our shareholders and region,” President and CEO Gail R. Schubert says in a letter to shareholders. The corporation, which has an office in Anchorage, issued a record-high dividend to shareholders in FY2017, as well as a special elder dividend. BSNC has distributed $23 million in dividends to its shareholders since its inception. BSNC provides substantial financial support to the Bering Straits Foundation, which offers scholarship, fellowship, and mentorship opportunities to shareholders and descendants. For the 2017/2018 academic year, Bering Straits Foundation awarded a total of $238,650 in educational funding. Since its inception in 1991, Bering Straits Foundation has provided more than $2.8 million to BSNC shareholders and descendants for post-secondary education. BSNC extends hiring preference to qualified shareholders, descendants, and shareholder

ALASKA NATIVE SPECIAL SECTION | 2017 IN PERSPECTIVE

has thirty-five subsidiaries in military defense contracting, construction, heavy equipment sales, rental and service, real estate, environmental and natural resource development, and telecommunications. Calista is the second-largest of the twelve regional corporations, with more than 6.5 million acres that include fifty-six villages, all off the road system. In 2017, the corporation expanded its enrollment beyond those born as of 1971 when ANCSA was passed. Now, with more than 25,000 shareholders, Calista is looking for ways to maximize shareholder benefits. The corporation is asking shareholders to approve the creation of a Settlement Trust, which could save the corporation millions of dollars in federal and state taxes. In FY2017, Calista paid $8.3 million in shareholder dividends and provided $739,700 to the elders benefit program. It also provided more than $207,000 in internships and apprenticeship opportunities. Since its inception, Calista has paid $61.4 million in dividends and $4.6 million in scholarships. The majority—92 percent—of Calista’s shareholders live within the state. Calista owns the mineral rights and some surface rights on the Donlin Gold project, which could dramatically reshape the economy of Southwest Alaska if developed. Over the years, Calista has worked closely with the tribes in the Yukon-Kuskokwim region, Donlin Gold, and federal and state agencies to ensure responsible development. In a letter to shareholders in its spring Storyknife newsletter, Calista writes, “The

Ashley Christensen, wearing a beaded headdress, is a representative of the Chugach Alaska region. © Judy Patrick Photography

original Calista Board, including Chief Eddie Hoffman and others, selected this land under ANCSA to provide economic opportunities for our region while safeguarding our resources for future generations. We intend to continue to do so while providing future opportunities for our youth. We asked Donlin Gold to help us develop our land

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because we trust they will do it right. Additionally, qualified Calista shareholders and descendants will be doing much of the work—our iluqs, our neighbors, our friends.”

Chugach Alaska Corporation In FY2017, Chugach Alaska reached a pivotal point in its long-term diversification strategy,

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Alaska Business | September 2018 www.akbizmag.com

over the life of the project while maintaining the land for cultural and subsistence use. Chugach is also pursuing the development of a granite quarry in Port Gravina. In 2017, Chugach submitted permit applications related to the development of the project. The quarry development will continue this year and beyond as part of Chugach’s one-hundred-year plan for resource and regional economic development. In 2017, Chugach invested $2.6 million in shareholder programs and benefits. Over the past decade, the corporation has invested $57.6 million in benefits for its approximately 2,200 shareholders and their descendants. The corporation put $11.5 million into an endowment for its nonprofit arm, Chugach Heritage Foundation. That brings the endowment balance to $18.5 million. Chugach also has pledged an additional $12.5 million through a new trust that will allow any followon contributions to the Chugach Heritage Foundation endowment pledge to be taxdeductible. The corporation reinvested $1.2 million in 2017 toward cultural events, artifact repatriations, and regional economic development efforts. Last year also marked the 23rd anniversary of its annual Nuuciq Spirit Camp, which brings youth and elders together to rediscover the origins, history, and culture of their ancestors. Shareholders and descendants have access to a range of professional development opportunities through Chugach. The corporation has sponsored one hundred participants in

Training Without Walls, a two-year training and mentorship program designed to foster future Alaska Native leaders.

Cook Inlet Region, Inc. Anchorage-based Cook Inlet Region, Inc. (CIRI) delivered one of its strongest financial performances in a decade in 2017. The corporation has subsidiaries in real estate, oilfield and construction services, land and natural resources, energy and infrastructure, environmental services, government services, and private equity. CIRI reported total revenue of $439 billion in 2017. One notable business move was the completion of the acquisition of Portage, Inc., a former competitor to the corporation’s North Wind Group, which specializes in environmental remediation in the energy and defense sectors. In 2017, thanks to the Portage acquisition and other factors, North Wind’s revenue increased 65 percent over a one-year period, from $161.7 million in 2016 to $266.7 million in 2017. CIRI expects to pay $23.4 million in dividends. In a letter to shareholders, CIRI President and CEO Sophie Minich also noted major contract wins for subsidiaries Silver Mountain Construction and Weldin Construction; refinancing one of the Arizona multifamily properties CIRI owns in partnership with Dean Weidner; and the company’s investment securities and private equities segments, which each delivered its best performance in three years. “CIRI marked 2017 as one of its most

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ALASKA NATIVE SPECIAL SECTION | 2017 IN PERSPECTIVE

with nearly 20 percent of its contract revenue coming from sources other than federal government contracting. The corporation, with a land base in Prince William Sound and headquarters in Anchorage, has long been a leader in government contracting. Over the past several years, the corporation has leveraged its history in facilities management and maintenance work for federal contracting customers and brought its expertise to the commercial facilities services and energy services sectors. Chugach Alaska now has a diverse portfolio of operating businesses in multiple industries and regions. Chugach Alaska reports its 2017 revenue increased 9.2 percent compared to 2016 to approximately $920 million. Operating profit climbed to $35.8 million, a measurable increase of $10 million over 2016. Looking toward the future, Chugach is monetizing its ANCSA land assets. In 2016, Chugach sold the “below-ground” coal rights in the Bering River Coal Field. The transaction protects the land from coal mining development, and Chugach retains full rights to any other minerals or subsurface development in the area. Chugach is also participating in an “above-ground” carbon offset program on 115,000 acres of timberlands. Under this program, Chugach maintains and protects commercial timber on certain lands and sells carbon credits to companies looking to offset their carbon emissions under California’s capand-trade program. The project will benefit shareholders by generating significant revenue

ALASKA NATIVE SPECIAL SECTION | 2017 IN PERSPECTIVE

Francisca Demoski, a Bristol Bay Native Corporation shareholder, wears a kuspuk, headdress, and traditional jewelry of the Bristol Bay region.

terior Alaska. Doyon also contributes to the Doyon Foundation’s language revitalization program, the purpose of which is to develop a program that will ensure the cultures and languages of the Doyon region are taught, documented, and easily accessible. © Judy Patrick Photography

Tatiana Ticknor, a Sealaska Corporation shareholder, wears traditional boots; Tlingit, Haida, Unangax, and Tsimshian people live within the Sealaska region.

profitable in a decade,” according to Minich. “The challenge now is to continue the upward momentum and grow in a way that adds value to shareholders’ equity into the future. We can achieve this by identifying new opportunities and harnessing the strength CIRI has established both internally and with our expert partners.”

Doyon, Limited In fiscal year 2017, Fairbanks-based Doyon, Limited achieved its second highest income in the company’s history, despite Alaska’s challenging economic conditions. The corporation, with more than 19,000 shareholders, operates a diverse family of subsidiaries in oil field contracting, government services, utility management, information technology, real estate, and resource development. Doyon reported revenue of $290.5 million in 2017, with net income of $28.7 million. Despite the downturn in oil prices, Doyon Drilling continues to be an economic engine 72

for the corporation. Doyon invested in a new extended-reach drilling rig, Rig 26, which is under construction in Edmonton, Canada, and is expected to join Doyon Drilling’s fleet in 2020. Doyon has also been exploring the Nenana basin for commercial oil and gas potential and drilled a fourth well, Totchaket #1, in summer 2018. For the 2017-2018 school year, Doyon awarded more than 400 scholarships. Doyon also announced its 38th roustabout training program for entry-level positions on Doyon’s rigs. Hundreds of shareholders have graduated from the program. Doyon is also a major contributor for the Morris Thompson Memorial Golf Classic, which raises nearly $100,000 annually for a scholarship program in Thompson’s name. Thompson was an Alaska Native leader and Doyon head who died in a 2000 plane crash. Doyon also offers the Daaga’ Awards—grants to organizations that promote drug- and alcohol-free events in the Doyon region, which encompasses 12.5 million acres in In-

Koniag, Inc. Kodiak-based Koniag, Inc. continues to build on its success in the past several years. Koniag, which ended its 2018 fiscal year on March 31, reported total revenue of $267 million and $271 million for fiscal year 2017, with pre-tax earnings of $11.7 million and $6.5 million respectively. Koniag, which has approximately 4,000 shareholders, operates three main business lines: commercial IT services that are based in Michigan; government contracting services, based in Chantilly, Virginia; and its Alaska-based businesses, says Chairman and Interim CEO Ron Unger. “We’ve been very much focused and diligent on our organic growth strategy, which has been growing our businesses in Alaska and the Lower 48 through adding new clients, selling more to our current clients, doing good work, and managing expenses appropriately,” he says. The majority (90 percent) of Koniag’s operating revenue comes from professional services, split between its commercial IT services and government contracting. The remaining 10 percent is derived from its energy and water services sector, a Kodiak-based granite quarry, and tourism operations.

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“Our focus has been to grow benefits for our shareholders,” Unger says. “The largest percentage of our shareholders is concentrated on Kodiak and Kodiak is our homeland, so we make a concerted effort to have a strong presence on Kodiak.” Although the corporation maintains offices in Anchorage, Koniag relocated its headquarters to Kodiak in 2010. Koniag is also developing a granite quarry in Shakmanof Cove, on the northern end of Kodiak Island, and has established the Kodiak Brown Bear Center on its lands.

NANA Regional Corporation NANA Regional Corporation has been ramping up its investment in Alaska and retooling its business structure. The Kotzebue-based corporation divides its business operations into two categories: federal and commercial. The federal group, which is based in Virginia, provides a variety of services to the US government, according to a news release. The commercial group comprises all other subsidiaries, including NANA Management Services, NANA WorleyParsons, NANA Lynden, and others. With its focus on Alaska, NANA reacquired WHPacific Alaska, a company that provides transportation, facility engineering, and rural development services. It will be rebranded as Kuna Engineering. With offices in Anchorage and Utqiaġvik, the commercial group employs more than 2,500 Alaskans and more than 500 NANA shareholders, providing camp services, security, logistics, engineering and design, general construction, drilling, and other resource development support services. In FY2017, NANA reported $850 million in federal sector revenue and $206 million www.akbizmag.com

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ALASKA NATIVE SPECIAL SECTION | 2017 IN PERSPECTIVE

Kally GreeneGudmundson displays traditional kuspuk, boots, and jewelry representative of the Iñupiat people who live in the NANA region.

ALASKA NATIVE SPECIAL SECTION | 2017 IN PERSPECTIVE

in commercial sector revenue, with $77.2 million in operations. Mineral exploration continues in the region, with Trilogy Metals spending $17 million. “NANA has supported the resource development industry for over forty years, and our investment in Alaska is at an all-time high,” says Wayne Westlake, NANA president and CEO, in a news release. “Kuna Engineering and NANA Construction’s expertise and experience will help create new opportunities and employment for our shareholders and will fuel growth for Alaska’s economy.” In 2017, NANA Management Services was selected by BP to continue food services, housekeeping, facilities management, security services, and logistics on the North Slope. The BP contract continues a forty-year relation-

ship between the companies, one of the most enduring contracts on the North Slope. NANA has 14,300 Iñupiat shareholders from Northwest Alaska, many of whom work in the Red Dog zinc mine north of Kotzebue. Red Dog is run as a partnership between NANA and Teck Alaska. The mine creates more than 600 jobs in the region. NANA has received more than $1.3 billion in net proceeds from the mine, distributing more than $820 million to other regional corporations through the 7(i) resource sharing provision under ANCSA. Of the $480 million NANA retained, more than $221 million in dividends has been distributed to shareholders. In FY2017, NANA received $247 million in net proceeds from Red Dog Mine and $154.4 million was shared through 7(i). The

corporation gave $838,000 to the Aqqaluk trust, distributed $13 million in shareholder dividends, and awarded 330 scholarships.

Sealaska For Juneau-based Sealaska, 2017 was a strong year; the corporation retooled its businesses after losses in 2013 to closer align with its cultural heritage and traditional values. It is owned by approximately 22,000 shareholders of Tlingit, Haida, Tsimshian, and Unangax heritage. Its businesses are in three core areas: natural resources, government services, and foods. Sealaska acquired Independent Packers Company, a value-added seafood processor in 2016. In 2017, it invested in seafood companies Odyssey Foods and Orca Bay Seafoods. Sealaska Foods is now the corporation’s largest operational group. Sealaska also has an investment portfolio that is also showed strong returns in 2017. The corporation is working with the Cloverdale Rancheria of Pomo Indians on a project to develop a casino in Cloverdale, California. Sealaska’s operations earned revenue of $293.4 million in 2017, significantly higher than its 2016 tally of $145.5 million. Sealaska’s combined net revenue exceeded $43 million in FY2017, a significant increase compared to 2016’s $14 million. Shareholder equity rose by $35.3 million in 2017 over 2016. It has increased by $61.5 million over the past four years, a significant recovery from losses in 2013. In its 2017 annual report, CEO Anthony Mallott writes, “Our natural resource business focuses on small-scale timber harvest and creates economic value from new opportunities like carbon markets. We shifted our government contracting businesses to focus on environmental services and water-quality work. We have invested in growth areas of the seafood industry that recognize the historic tie our people have to the ocean and the ocean’s bounty. We are proud to say we operate businesses that both protect our environment and responsibly harvest.” In 2016, Sealaska initiated a carbon sequestration project on about 155,000 acres that continued in 2017. The project is part of an effort to develop long-term storage of carbon to mitigate or defer global warming. Once its carbon project application is approved, Sealaska can sell credits to buyers seeking to offset carbon emissions. Sealaska is boosting its scholarship program by $10 million, bringing its total endowment to $15.7 million. Scholarships are paid from earnings from its fund and timber revenues. To date, Sealaska has awarded about 11,000 scholarships totaling $16.4 million. The corporation also contributed $1.5 million in cash and in-kind donations to the Sealaska Heritage Institute. Since 1972, Sealaska has paid $643.1 million in shareholder dividends and ANCSA 7(i) distributions. R Julie Stricker is a journalist living near Fairbanks.

Alaska Business | September 2018 www.akbizmag.com

SPECIAL SECTION

Alaska Native

Alaska Native Corporations Work at Home

An Olgoonik team prepares a cement sack over the batch mixer in remote NPR-A, February 2018. Olgoonik

Alaska Business | September 2018 www.akbizmag.com

By Tasha Anderson

he 13th Inuit Circumpolar Council General Assembly took place in Utqiaġvik in July. During that assembly, Arctic Slope Regional Corporation CEO Rex Rock Sr. voiced his support for oil and gas development in the Arctic. “Our region is dependent upon the economy that oil and gas development brings,” he stated. Yet he was also clear to express that it is vital for Alaska Natives to have a voice in the discussion of how the oil and gas industry moves forward on the North Slope. “By having a seat at the table during the decision process, we will have the opportunity to influence projects for protection of our rights as indigenous people.” And many of the corporations established by the Alaska Native Claims Settlement Act have engagement in the oilfield beyond roles as stakeholders and resident experts of the Alaska Arctic—they participate in the oilfield through lease-holding, exploration, development, operations, and the many, many support services related to those activities. Being involved in the oil and gas industry directly is both an economic opportunity for residents of the Arctic as well as a method to ensure local knowledge and talent are used for the benefit of the operating companies, the environment, and Alaska as a whole.

Olgoonik Oilfield Services Olgoonik Corporation is headquartered in and is the corporation for Wainwright, located on the coast of the Chukchi Sea on Alaska’s north coast. The company has more than 1,300 shareholders, almost half of whom live in the area. “We are a North Slope village, so we’re trying to provide services within the North Slope,” says James Nunley, general manager of Olgoonik Oilfield Services (OOS). The company finds itself “at home in the Arctic” and provides a range of remote construction, operation, and environmental support services, including construction, demolition, and waste management; well plugging and abandonment, fuel hauling, and camp/facility management; and regulatory permitting, spill response and cleanup, and work plan preparation, just to skim the list. Nunley says that recently the company has been under contract with another North Slope corporation, hauling more than 500,000 gallons of fuel from Utqiaġvik to Atqasuk. “OOS was successful in its first year of hauling fuel, and we met the requirements of the contract, so we’re going to go back and do it for the foreseeable future,” he says. OOS has also been working on a legacy well plug and abandonment contract for the US Bureau of Land Management (BLM). In 2016 the company successfully completed three well closures that were near Utqiaġvik “just off the road system,” and in the winter of 2017 the company “launched into NPR-A 150 miles away from the road system, with complete equipment, and completed five plug and abandonments for BLM in the Legacy www.akbizmag.com

Well Program,” for a total of eight closures to date. The BLM Legacy Well Program is under an IDIQ contract, which means Indefinite Delivery, Indefinite Quantity; a government contract that allows for an undefined amount of services or work to be performed within a fixed amount of time—in this case five years, ending in 2021. The Legacy Well Program IDIQ was awarded to both Olgoonik and Marsh Creek. As BLM secures funds for the program, it publishes task orders, which the two companies then bid to complete— Olgoonik has been awarded the last two task orders, Nunley says, and they’re hoping to soon secure a third. Olgoonik Construction Services (OCS)

is also active in the Arctic, providing civil, vertical, and horizontal construction, and the company just recently added power generation to its resume, according to General Manager Dave Smith. “We’re re-doing the generators for the Barrow Gas Fields this winter; we’re putting in three new micro turbines.” That project will begin “as soon as we can get on the tundra,” says Olgoonik Vice President, Commercial Division Steve MacRae. Planning for the approximately $3 million project for the North Slope Borough began in July, with OCS acquiring materials and planning logistics, but “the onsite fieldwork will be January until April,” MacRae says, adding the project will use a crew of about six people. Olgoonik has a few projects slated for this

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Olgoonik

ALASKA NATIVE SPECIAL SECTION | OIL & GAS

Olgoonik’s ski-mounted workover rig on a well in NPR-A.

month, including building two gravel pads and assembling office space modules for a North Slope company. It’s also starting a landfill closure project in Utqiaġvik. “Whenever there’s strong wind from the east, the nearby lake picks up waves, so it’s eroding part of the landfill. So we’re going to do some erosion abatement around a portion of the landfill,” Smith says. That project should be completed by December, allowing the crew to move on to the generator/micro turbine project.

Olgoonik

Aerial view of Olgoonik’s thirty-man sleigh camp onsite in the foothills of the Brooks Range, 120 miles from the road system.

Olgoonik

Olgoonik team member Amanda Baxter in Utqiaġvik.

Olgoonik

Employees at Work Maintaining a core group of employees who work on a variety of projects one after another is one practice that sets Olgoonik apart from other oilfield service providers. “I would say we have a core group of employees that we ‘fight’ over and move around from subsidiary to subsidiary as the workload fits,” Smith says. When the project calls for additional workers, the company will bring on more people, local if possible, and other talent from around Alaska if not. Nunley explains, “We’re moving toward hiring North Slope Borough residents and, as much as possible, shareholders for the long term.” MacRae adds, “Our goal is local hire and shareholder hire. We’re one of four communities that actually reside within

Olgoonik well team checks a choke manifold on a well in Utqiaġvik.

One of Olgoonik’s Case Steigers prepares to mobilize a cement batch mixer to remote NPR-A from Deadhorse, an overland haul of 150 miles.

Alaska Business | September 2018 www.akbizmag.com

Olgoonik

Olgoonik well team installs well control equipment on a priority well in Utqiaġvik in 2016.

—Steve MacRae Vice President Commercial Division Olgoonik

A Olgoonik well team prepares to install blow out prevention equipment to a well in remote NPR-A.

NPR-A, so our focus is on North Slope employment. And, actually, it’s economic for us to do that.” Hiring locally can reduce or eliminate costs such as transportation to and from Anchorage or Fairbanks and providing housing. How Olgoonik shares employees between subsidiaries benefits the company and the employees, as work is steady throughout the year. “It’s a good mix: we have winter oilfield work and then summer time construction,” MacRae says. “We don’t really have a lull time,” Nunley adds. Smith continues, “We have guys asking us for time off opposed to us giving them time off. A typical scenario is coming up: one of the subsidiaries has an Air Force job where they’re doing some demolition. From that demolition, the same equipment and same people will move onto closing a landfill, an OCS project. Then, when that project is over, those people will get a Christmas break and then go right over to OOS for legacy wells.” The company’s focus on hiring shareholders and local talent also pays off regularly with talented and hardworking personnel. “We hired a gentleman who had absolutely no construction experience whatsoever, but he was a local shareholder. He went on the job, was a likeable fellow, and people took him under their wing and taught him, and he’s become an unbelievable asset. As a matter of fact, between OOS and OCS, as soon as January comes we’re ‘fighting’ over where he’s going because he’s such a good employee—and he’s not the only one,” MacRae says.

Ukpeaġvik Iñupiat Corporation Ukpeaġvik Iñupiat Corporation (UIC) is the village corporation of Utqiaġvik (representing 2,900 shareholders) and provides a full range of services to the oil and gas industry: camp services, remote equipment fueling, labor for contracts, environmental services oversight planning, communications support, project planning, and logistics. “It’s www.akbizmag.com

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“Our goal is local hire and shareholder hire. We’re one of four communities that actually reside within NPR-A, so our focus is on North Slope employment. And, actually, it’s economic for us to do that.”

ALASKA NATIVE SPECIAL SECTION | OIL & GAS

The Olgoonik well team assembles well equipment in Utqiaġvik. Olgoonik

total support from cradle to grave,” says UIC Program Consultant Mike Matteucci. He says that UIC’s history on the North Slope is primarily in supporting exploration and not production. They have worked across

the slope, from southwest of Utqiaġvik to the Umiat area. “Our support services have been dictated by the size of the project… we fill in a lot of the little niches and do what we do best to make it more economical for the

project owner. We fit our abilities and equipment and people into the project’s overall scope,” Matteucci says. The company’s knowledge of the North Slope—in general and through an industry

Alaska Business | September 2018 www.akbizmag.com

Olgoonik

Arctic Workhorses PistenBullys were designed for use on snow and ice and have been used worldwide for years to sculpt and groom ski slopes and trails. “They have a tendency to flow over snow and ice where other machines have to trudge through it,” Matteucci says. UIC finds it’s effective to use PistenBully machines to haul sleds and toboggans loaded with materials, equipment, and other freight in winter months when travel over the tundra is safe and approved. PistenBully vehicles have several valuable features: they’re fuel efficient, comfortable to drive, and sport advanced technology such as GPS plotters and a feature similar to traction control, making it less likely the vehicle will get stuck. The fact that they pull sleds (made of

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September 2018 | Alaska Business

ALASKA NATIVE SPECIAL SECTION | OIL & GAS

An Olgoonik well team prepares thaw out string.

lens—is a benefit for their clients and the other companies they collaborate with. “Our experience up there and the knowledge we have gained working through all the idiosyncrasies that go on up there allows us to be of great value.” A fairly recent evolution in the way UIC provides services on the North Slope is the company’s adoption and use of PistenBully vehicles, which they’ve been using since 2016. “They’re designed to run in snow and ice conditions, and these machines have proven in the last couple years that they can do the jobs of the equipment that’s presently up there, and in a lot of aspects, can do it a lot more efficiently.”

ALASKA NATIVE SPECIAL SECTION | OIL & GAS

In 2016 UIC began to utilize PistenBullys, over-tundra vehicles that are environmentally friendly and Alaska Department of Natural Resources Tundra Certified. UIC

UHMW, a high-density plastic) actually adds to their functionality: “Because of the friction [from the sled] when you’re going across, [the snow] tends to heat up a little bit and then cools right back down and freezes, so that actually forms your trail faster.” The toboggans are twelve feet wide and thirty feet long, and UIC has them specially manufactured with skis that can haul sub-

stantial loads; glide easily across the snow and ice; and throw snow off to the sides instead of back in the path of the sled, all of which produce a smoother, better path. “That’s the main reason we can pick up speed on our trails… and we have the ability to pull a load [on the first trip] with us that makes us revenue versus going out, making the trail, and then coming back and starting to make

revenue hauling loads,” Matteucci says. In 2017 UIC pioneered, built, and maintained a 214-mile snow trail between Prudhoe Bay and Atqasuk for the North Slope Borough using PistenBullys. Last year UIC also used the machines to haul materials across the Colville River, and including ice coring (checking ice thicknesses to make sure the equipment can safely move

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UIC

—Mike Matteucci Program Consultant, UIC

across), it took the team an hour and forty-five minutes to cross the river. Other companies crossing the river took two days to create a trail, which included bringing an excavator and bulldozer to the crossing site. Another time-saving feature that UIC is hoping to soon incorporate in the vehicles would allow them to measure snow depth while traveling instead of stopping to use a rod. PistenBullys only need a few inches of snow to be able to travel, but depending on the area, the state requires that there are between twelve and sixteen inches of snow to ensure a certain amount of frost depth and to protect the tundra. Measuring snow while traveling would save UIC time, a precious commodity in the short winter exploration season. “We’re trying to figure out ways to be more efficient,” Matteucci says. For example, UIC maintains a support camp at Umiat, complete with a 5,600-foot runway. For a recent project UIC flew in between 200 and 300 plane loads of materials, as well as pulled materials over the tundra. “We brought in drill pipe and drilling fluids and staged everything for [the client] at that site. As they need it they come and pick it up—it’s kind of a small, regional storage facility so they don’t have to rely on getting materials out of Deadhorse on time.” UIC also invested in cabs for the PistenBullys that can transport ten to fifteen personnel at a time. And the PistenBully can haul a sled full of freight simultaneously. “[Clients] don’t have to run their busses back and forth; they get everything all at once,” Matteucci says. UIC has found other small projects around the state that play well into their capabilities. “We’ve had a couple minor projects that were three or five days—they’re mainly in the spring when the rivers start to thaw and the State of Alaska is doing ice profiling. They’ll study the hydrology for floods and things like that.” Recently UIC hauled 200,000 pounds of structural lumber for the US Forest Service in the Wrangell-St. Elias National Park to build boardwalks.

New Work, New Optimism Both Olgoonik and UIC look forward to additional opportunities for projects in the Alaska oil and gas industry. “There’s still a lot of work going on in the North Slope www.akbizmag.com

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PistenBullys are capable of transporting personnel in cabs and equipment/materials on sleds simultaneously and can haul materials while pioneering a trail through the snow, increasing efficiency.

“Our support services have been dictated by the size of the project… we fill in a lot of the little niches and do what we do best to make it more economical for the project owner. We fit our abilities and equipment and people into the project’s overall scope.”

ALASKA NATIVE SPECIAL SECTION | OIL & GAS

Olgoonik

Olgoonik team photo in remote NPR-A, March 2018.

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right now, but they’re small crew and small jobs. It’s a matter of scale,” Matteucci says. To illustrate his point, in his experience in past years, a pickup truck would need to be reserved three or four weeks in advance of a project to ensure one was available, but today a company can rent a pickup without even making a reservation. And there’s optimism in the air about the near future, specifically starting in 2019. “I believe we’re headed for a definite pick up, just based on new horizons, looking over toward ANWR: it all starts out with a seismic base, and word on the street is that it’s lining up that way… that’s where Olgoonik wants to be to support whatever projects come out of it,” Nunley says. Smith agrees, saying, “I’m seeing an uptick. I’ve seen for eighteen months that it was coming, and it will. The question is how fast it’s going to come.” “Everybody has that feeling that 2019 is going to be better; we haven’t maybe seen the bottom yet, but we’re probably hovering on the bottom and the upswing will come,” Matteucci says. UIC is excited, as those opportunities do manifest, to have a larger presence in the oil field. “We’ve wanted to grow over the years, but it has been a very tight market. In 2019 we’re hoping for some more opportunities; we see some openings coming up.” R

Tasha Anderson is the Associate Editor for Alaska Business.

Alaska Business | September 2018 www.akbizmag.com

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ALASKA NATIVE SPECIAL SECTION | 2018 REGIONAL CORPORATION DIRECTORY

Ahtna, Incorporated AHTNA Inc.

PO Box 649, Glennallen, AK 99588 | Phone: 907-822-3476 ahtna-inc.com | news@ahtna.net | Ahtna.Inc @ahtnainc | ahtna-inc.

Alaska Employees: Worldwide Employees: Shareholders: Land Holdings: 2017 Gross Revenue: 2016 Gross Revenue:

309 1,380 2,016 1.5 million acres $ 238,000,000 $ 217,700,000

Revenue Sources: Not disclosed. Business Activities: Ahtnaâ&#x20AC;&#x2122;s principle activities include construction, engineering, environmental, facilities management, surveying, security, military training, janitorial, healthcare and medical records management, government contracting, land management and resource development, and oil and gas pipeline services. Significant Endeavors: Ahtna is dedicated to its mission of providing economic, cultural, and social benefits to its shareholders. Ahtna is Michelle currently involved in a carbon offset program in our region which Anderson complements that mission. President Subsidiaries: Ahtna Development Corp. | Ahtna Facility Services. | Ahtna Support & Training Services | Ahtna Environmental Services | Ahtna Government Services Corp. | Ahtna Construction & Primary Products Corporation | Ahtna Design Build | Ahtna Professional Services | Ahtna Environmental | Ahtna Technologies. | AKHI | Ahtna Global | Ahtna Logistics | Tolsona Oil & Gas Exploration | Ahtna Engineering Services | AAA Valley Gravel | Ahtna Netiyeâ&#x20AC;&#x2122;

Revenue Sources: Operations and maintenance contracts, 194,199,294; fuel sales, $8,030,639; rental properties, $2,654,960; natural resource, $4,244,480; investment income, $1,715,689; earnings, $760,279; other, $231,865. Business Activities: Federal contracting; O&M; instrumentation for oil and gas industry; mechanical contracting; radiological laboratory analysis; field testing; land remediation; commercial and residential real estate; fuel sales and storage; oil well testing services; Thomas Mack information technology; and construction services. President/CEO Significant Endeavors: Port of Adak development. Subsidiaries: Aleut Enterprises | Aleut Management Services | Aleut Real Estate | Alaska Instrument | C&H Testing | Patrick Mechanical | ARS International $

Aleut Corp.

4000 Old Seward Hwy., Suite 300, Anchorage, AK 99503 | Phone: 907-561-4300 aleutcorp.com | info@aleutcorp.com Aleut Corporation | @AleutCorp

Alaska Employees: Worldwide Employees: Shareholders: Land Holdings: 2017 Gross Revenue: 2016 Gross Revenue:

184 929 3,865 1.577* $ 211,837,206 $ 171,655,823

Arctic Slope Regional Corp.

PO Box 129, Barrow, AK 99723 | Phone: 907-852-8633 asrc.com | ASRCExternalAffairs@asrc.com | WeAreASRC @ASRC_AK | ArcticSlopeRegionalCorporation

Alaska Employees: Worldwide Employees: Shareholders: Land Holdings: 2017 Gross Revenue: 2016 Gross Revenue:

3,715 11,301 12,672 ~5 million acres $ 2,697,862,000 $ 2,371,164,000

Bering Straits Native Corp.

3301 C St., Suite 400, Anchorage, AK 99503 | Phone: 907-563-3788 beringstraits.com | info@beringstraits.com | GoBSNC

Alaska Employees: Worldwide Employees: Shareholders: Land Holdings: 2017 Gross Revenue: 2016 Gross Revenue: 86

337 1,447 7,902 2.1 million acres $ 357,900,000 $ 326,000,000

*1.5 million subsurface acres and 77,000 surface acres

Revenue Sources: Government services, 45.6%; petroleum refining and marketing, 24.7%; energy support services, 16.2%; industrial services, 7.3%; construction, 4.6%; resource development, 1.7%; other, 1.6%. Business Activities: Government contract services, petroleum refining and marketing, energy support services, industrial services, construction, resource development. Significant Endeavors: After nearly forty years of effort by ASRC and other key supporters, including our AK Delegation and VOICE, Rex A. Rock Sr. the Coastal Plain of the Arctic National Wildlife Refuse was opened to President/CEO responsible oil and gas development by way of a provision in the Tax Cuts and Jobs Act, signed by President Donald J. Trump. We are thankful for our leaders who have fought a long battle to unlock this portion of ANWR and allow for economic growth that will hopefully strengthen all of our North Slope communities. Subsidiaries: ASRC Construction Holding Company | Eskimos | Tundra Tours, Inc. | Alaska Growth Capital BIDCO | Little Red Services | ASRC Industrial Services | ASRC Energy Services | Petro Star, Inc. | ASRC Federal Holding Company

Revenue Sources: Base operation support services, information technology, logistics and procurement, professional support services, construction, security services, hardware retail and wholesale distribution, environmental. Business Activities: Logistics, aircraft and airfield services, base operations support services, special training and security, administrative services, IT services, communications, construction, environmental services, and distribution. Significant Endeavors: Bering Straits Native Corporation (BSNC) would like to inform its shareholders about the proposed BSNC Beringia Settlement Trust, unanimously approved by the BSNC Board of Directors. Shareholders will vote on approving the Trust at the 2018 Annual Meeting in October. A Settlement Trust Gail R. allows a Native Corporation to set aside funds for the distribution of benefits, Schubert provides tax-free dividend distributions to shareholders in future years, and President/CEO increased shareholder and descendant benefits. Subsidiaries: Inuit Services | Bering Straits Aerospace Services | Bering Straits Logistics Services | Bering Straits Information Technology | Bering Straits Technical Services | Bering Straits Aki | Eagle Eye Electric | Ayak | Global Support Services | Global Management Services | Iyabak Construction | Global Asset Technologies | Global Precision Systems | Bering Straits Development Co. | Global Technical Services | Golden Glacier | 4600 Debarr | Alaska Industrial Hardware |Paragon Professional Services | Arcticom | Alaska Gold Company | Aurora Inn & Suites | Stampede Ventures | Bering Global Solutions | Bering Straits Global Innovations | Bering Straits Professional Services | Sound Quarry

Alaska Business | September 2018 www.akbizmag.com

POWERED TO MOVE TOTE Maritime Alaska delivers the equipment and solutions twice weekly, all year long to keep projects moving in the 49th State.

Subsidiary of TOTE, one of the 2018 Worldâ&#x20AC;&#x2122;s Most Ethical Companies I Learn more at totemaritime.com

ALASKA NATIVE SPECIAL SECTION | 2018 REGIONAL CORPORATION DIRECTORY

Bristol Bay Native Corp.

111 W. 16th Ave., Suite 400, Anchorage, AK 99501 | Phone: 907-278-3602 bbnc.net | info@bbnc.net | BristolBayNativeCorporation @BristolBayToday | bristol-bay-native-corporation

Alaska Employees: Worldwide Employees: Shareholders: Land Holdings: 2017 Gross Revenue: 2016 Gross Revenue:

1,550 3,860 10,306 3,124,777 acres $ 1,659,345,000 $ 1,525,181,000

Calista Corp.

Alaska Employees: Worldwide Employees: Shareholders: Land Holdings: 2017 Gross Revenue: 2016 Gross Revenue:

800 3,000 25,600 6,500,000 acres $ 480,200,000 $ 492,200,000

Revenue Sources: Industrial services, 52.3%; construction, 28.5%; government services, 16.1%; tourism, 0.7%; investment earnings, 1.7%; natural resources, 0.6%; other, 0.1%. Business Activities: Construction, government services, industrial services, and tourism. Significant Endeavors: BBNC is focused on striking the proper balance between improved earnings and responsible management of our lands and resources to maximize benefits for our shareholders. Jason Subsidiaries: SpecPro Group | Bristol Alliance of Companies | Metrokin President/CEO CCI Alliance of Companies | SES Group | PetroCard | Bristol Bay Mission Lodge | Bristol Bay Industrial | Peak Oilfield Service Company | CCI Industrial Services | Kakivik Asset Management | Bristol Alliance Fuels | Katmailand, Inc. | Alaska Directional | Bristol Bay Shared Services

Revenue Sources: Defense contracting; construction; heavy equipment sales, rental, service; real estate; environmental services; marine transportation; oil field services; fiber optic services; logistics. Business Activities: Defense contracting; construction; heavy equipment sales, rental, service; real estate; environmental services; marine transportation; oil field services; fiber optic services. Significant Endeavors: Expanding ANCSA Shareholder enrollment to descendants and those that missed enrollment in 1971. Andrew Guy President/CEO Subsidiaries: Ookichista Drilling Services | Tunista Services | Y-Tech Services | Yulista Aviation | Yulista Management Services | Chiulista Services | Brice Incorporated | Tunista | Yukon Equipment | Brice Construction | Brice Marine | Brice Equipment | Calista Real Estate | Aulukista | Yulista Tactical Services | Qagan Lands | Calista Education & Culture | Brice Environmental Services Corp. | Alaska Crane | Futaris Fibre | E3 Environmental | STG | STG Pacific

“This is a major shift. How will it affect us?” People who know Tax Reform, know BDO. The recent tax reform will have broad implications – both on businesses and the people who lead them. From lowering corporate and individual income tax rates and eliminating deductions, to new pass-through rules and the shift to a territorial tax system, the sweeping legislation represents the biggest change to the tax code in a generation. At BDO, we’re using our deep technical experience and industry-specific knowledge to help clients identify the potential impact of the new regulation – and plan for the changes. Contact us to learn what you should be doing immediately to prepare for the new tax reform. Kevin Van Nortwick, Office Tax Managing Partner, 907-278-8878 / kvannortwick@bdo.com BDO Anchorage, 3601 C Street, Suite 600, Anchorage, AK 99503 @BDO_USA_Tax

Accountants and Advisors

www.bdo.com

Alaska Business | September 2018 www.akbizmag.com

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

On time and on budget. At Lynden, we understand that plans change but deadlines don’t. That’s why we proudly offer our exclusive Dynamic Routing system. Designed to work around your unique requirements, Dynamic Routing allows you to choose the mode of transportation – air, sea or land – to control the speed of your deliveries so they arrive just as they are needed. With Lynden you only pay for the speed you need. lynden.com | 1-888-596-3361

ALASKA NATIVE SPECIAL SECTION | 2018 REGIONAL CORPORATION DIRECTORY

Chugach Alaska Corp.

3800 Centerpoint Dr., Suite 1200, Anchorage, AK 99503-4396 | Phone: 907-563-8866 chugach.com | communications@chugach.com chugachalaskacorporation | chugach

Alaska Employees: Worldwide Employees: Shareholders: Land Holdings: 2017 Gross Revenue: 2016 Gross Revenue:

1,000 6,400 2,700 ~1 million acres* $ 920,000,000 $ 842,000,000

Cook Inlet Region Inc.

PO Box 93330, Anchorage, AK 99509-3330 | Phone: 907-274-8638 CIRI.com | info@CIRI.com CIRInews | @CIRI

Alaska Employees: Worldwide Employees: Shareholders: Land Holdings: 2017 Gross Revenue: 2016 Gross Revenue:

284 1,384 8,896 625,001.3 acres* $ 439,349,000 $ 289,048,000

Revenue Sources: Government services, facilities services, energy services, investments, land and resource development. Business Activities: Government services, facilities services, energy services, investments, land and resource development. Significant Endeavors: Chugach is monetizing ANCSA land assets for the benefit of our shareholders and region for generations to come. In 2016, Chugach sold the “below-ground” coal rights in the Bering River Coal Field, which protects the land from coal mining development, while we retain the full rights to any other subsurface development in the area. We’re also participating in an “above-ground” carbon offset program, where Chugach maintains and protects commercial timber on select lands Gabriel and sells “carbon credits.” Kompkoff Subsidiaries: Rex Electric & Technologies | Heide & Cook | All American Oilfield | CEO Chugach Alaska Services | Chugach Tuullek | Chugach Professional Oilfield Services | Chugach Commercial Holdings | Chugach Government Solutions | Chugach Investment Holdings | Chugach Government Services | Wolf Creek Federal Services | Chugach Management Services | Chugach Consolidated Solutions | Chugach Industries | Chugach World Services | Chugach Information Technology | Defense Base Services | Chugach Federal Solutions | Chugach Education Services | Chugach Technical Solutions | Chugach Training & Educational Solutions | Chugach Systems Integration *in Southcentral, including 378,000 acres of full fee estate and 550,000 acres of subsurface estate

Revenue Sources: Real estate, oilfield and construction services, land and natural resources, energy and infrastructure, environmental services, government services, and private equity. Business Activities: CIRI’s financial strength and expertise spans diverse business segments which primarily include real estate, oilfield and construction services, land and natural resources, energy and infrastructure, environmental services, government services, and private equity. Sophie Minich Significant Endeavors: Completed the acquisition of Portage, Inc., a President/CEO former competitor to North Wind Group, specializing in environmental remediation for the energy and defense sectors. Subsidiaries: CIRI Land Development Co. | North Wind Group | Fire Island Wind | Cruz Energy Services | Cruz Marine | Weldin Construction | Silver Mountain Construction | CIRI Services Corporation | ANC Research & Development | CIRI Capital Company * 1.3 acres subsurface, 625,000 acres surface

Reaching for the Future—at the Speed of Light. Quintillion’s fiber network is transforming northern Alaska communities. And that’s just the start.

From telemedicine to virtual classrooms and on-line training programs, isolated communities from Nome to Utqiagvik are starting to leverage Quintillion’s new 1,200-mile subsea fiber-optic system to the benefit of their patients, students and consumers. The first-ever submarine cable system in the North American Arctic provides access to Gig-E and higher services to telecommunications providers while reducing the cost of backhaul infrastructure compared to existing satellite and microwave technologies. Quintillion has connected these communities by building a new 500-mile terrestrial fiber system from Fairbanks to Deadhorse. And we’ve added capacity and diversity for the Prudhoe Bay oil fields. We’re not done yet. Quintillion is exploring opportunities to connect other remote Alaska communities. In the near future, we plan to extend to Europe and Asia, providing diversity for the flow of information in and out of Alaska–and creating new opportunities, including advanced systems to support our national defense and a North American Arctic data center in this fast-developing part of the world. The future is bright–and fast. And we’re just getting started.

Internet at the Speed of Light. Powered by Quintillion.

Qexpressnet.com.

Alaska Business | September 2018 www.akbizmag.com

1 Doyon Pl., Suite 300, Fairbanks, AK 99701-2941 | Phone: 888-478-4755 doyon.com | communications@doyon.com | doyonlimited @doyonlimited | 68337

Alaska Employees: Worldwide Employees: Shareholders: Land Holdings: 2017 Gross Revenue: 2016 Gross Revenue:

591 888 19,700 12.5 million acres $ 290,548,000 $ 305,412,000

Koniag Inc.

194 Alimaq Dr., Kodiak, AK 99615 | Phone: 907-486-2530 koniag.com | KoniagInc

Alaska Employees: Worldwide Employees: Shareholders: Land Holdings: 2017 Gross Revenue: 2016 Gross Revenue:

59 753 3,850 1,133,000 acres* $ 270,769,000 $ 251,588,000

Revenue Sources: For Fiscal Year ending March 31, 2017: contracting and sales revenue, $263,000,000; lease income, $607,000; natural resources revenue, $4,403,000; equity in earnings of affiliates, $193,000; interest income, $113,000; other, $197,000. Business Activities IT services, government contracting services, energy and water, tourism, natural resource development, real estate. Significant Endeavors: Koniag is always working to provide more value to our shareholders through increased benefits. This year Koniag is implementing a new Elder Benefit and increased the Youth Scholarship Ron Unger Award amount from $500 to $750 per student. Interim CEO Subsidiaries: Digitized Schematic Solutions | Frontier Systems Integrator | Koniag Development Company | Koniag Services | Professional Computing Resources | XMCO | DowlandBach Corporation | Koniag Information Security Services | Granite Cove Quarry | Koniag Technology Solutions | Nunat Holdings | Near Island Building | Karluk Wilderness Adventures, Inc. dba Kodiak Brown Bear Center and dba Karluk River Cabins | PacArctic | Open Systems Technology, DE | Arlluk Technology Solutions | Eagle Harbor Solutions | Kadiak | Tuknik Government Services | Glacier Services * 143,000 surface, 990,000 subsurface acres

STRENGTHENING

Alaska

From humble beginnings to one of Alaskaâ&#x20AC;&#x2122;s most successful corporations, Arctic Slope Regional Corporation has built lasting benefits for our shareholders while helping to power Alaskaâ&#x20AC;&#x2122;s economy since 1972.

www.akbizmag.com

September 2018 | Alaska Business

ALASKA NATIVE SPECIAL SECTION | 2018 REGIONAL CORPORATION DIRECTORY

Doyon Ltd.

Revenue Sources: Oilfield services, government contracting, lands and natural resources, tourism. Business Activities: Doyon has business lines in oil field service contracting including oil rigs, camps and services, engineering and design, and pipeline construction; government contracting including utility management, construction, and information technology; resource development; telecommunications; and laundry. Significant Endeavors: A new Extended Reach Drilling Rig (ERD) is Aaron Schutt being constructed for Doyon Drilling, Inc. (DDI). DDI is on track for the President/CEO scheduled delivery to ConocoPhillips in 2020. This new rig, Rig 26, will have the ability to directional drill to at least 33,000 feet and have the capacity to develop resources within a 125-square-mile area. Subsidiaries: Doyon Oil Field Services | Doyon Government Contracting | Doyon Natural Resources Development Corporation | Northern Laundry Services | Doyon Tourism | Northstar Manager

ALASKA NATIVE SPECIAL SECTION | 2018 REGIONAL CORPORATION DIRECTORY

NANA Regional Corp.

PO Box 49, Kotzebue, AK 99752 | Phone: 907-442-3301 nana.com | news@nana.com | nanaregionalcorporation @NANACorporation | 2853774

Alaska Employees: Worldwide Employees: Shareholders: Land Holdings: 2017 Gross Revenue: 2016 Gross Revenue:

4,796 12,251 14,300 2,280,000 acres $ 1,354,000,000 $ 1,300,000,000

Sealaska Corp.

One Sealaska Plaza, Suite 400, Juneau, AK 99801-1276 | Phone: 907-586-1512 sealaska.com | webmaster@sealaska.com | sealaskacorporation @Sealaska | sealaska-corporation

Alaska Employees: Worldwide Employees: Shareholders: Land Holdings: 2017 Gross Revenue: 2016 Gross Revenue:

50 300 22,079 360,000 acres $ 293,400,000 $ 145,500,000

Wayne Westlake President/CEO

Revenue Sources: Natural resources, marketable securities, and business units. Business Activities: NANA has operations in thirty-eight states, fifteen countries, and across five continents in our core areas of resource development/mining, federal, and commercial. Significant Endeavors: NANA has sixty-five subsidiary companies that serve federal, private, and industry clients in Alaska and around the globe. Subsidiaries: NANA Development Corporation

Revenue Sources: Water & Maritime: water monitoring and data analytic capability, IT services, general construction and design build, and environmental remediation and services. Natural Resources: sustainable timber harvest and community based food projects, forest products, and construction aggregates. Seafood & Natural Foods: seafood businesses that add value. Business Activities: Sealaska businesses are driving success and utilize the wisdom of Tlingit, Haida, and Tsimshian ancestors. We are helping Anthony solve the challenges of today and tomorrow. Sealaskaâ&#x20AC;&#x2122;s financial strength Mallott comes from three income sources. Sealaska operations include natural President/CEO resources, government services, and foods. Significant Endeavors: Professional services. Subsidiaries: Sealaska Timber Company | Alaska Coastal Aggregates | Sealaska Environmental Services | Managed Business Solutions | Sealaska Constructors | Sealaska Construction Solutions | Sealaska Government Services | Sealaska Technical Services

Alaska Business | September 2018 www.akbizmag.com

Rock solid and ready to rock.

WHY HIRE ALASKANS FOR LOCAL JOBS? BECAUSE IT’S COLD, DARK AND RAINY. PLUS, BEARS. THE LAST FRONTIER IS A TOUGH PLACE TO WORK. BUT ALASKANS ALREADY KNOW THAT – WE LIVE HERE. When you join APICC, you’re working with other employers to create a foundation of qualified, long-term employees. Hiring out-of-state people creates turnover – and that costs you money. Alaskans already love it here. Together, we can be sure they’re ready to rock your jobs.

JOIN APICC TODAY.

APICC.ORG

SPECIAL SECTION

Alaska Native ANCSA Village Corporations Afognak Native Corporation Akhiok-Kaguyak, Incorporated Akiachak Akutan Corporation Alakanuk Native Corporation Alaska Peninsula Corporation Aleknagik Natives Alexander Creek, Incorporated* Arviq, Incorporated Askinuk Corporation Atmautluak Atqasuk Corporation Atxam Corporation Ayakulik, Incorporated Azachorok, Incorporated Baan O Yeel Kon Corporation Bay View, Incorporated Bean Ridge Corporation Beaver Kwit’chin Corporation Becharof Corporation Belkofski Corporation Bethel Native Corporation Brevig Mission Native Corporation Cape Fox Corporation Caswell Native Association* Chalkyitsik Native Corporation Chaluka Corporation Chefarnrmute, Incorporated Chevak Company Chickaloon-Moose Creek Native Association, Incorporated Chignik Lagoon Native Corporation Chignik River Chinuruk, Incorporated Chitina Native Corporation Choggiung Chuloonawick Corporation Council Native Corporation Cully Corporation, Incorporated Danzhit Hanlaii Corporation Deloy ges Corporation Deloycheet, Incorporated Dineega Corporation Dinyea Corporation Dot Lake Native Corporation Eklutna, Incorporated Ekwok Natives Elim Native Corporation Emmonak Corporation Evansville, Incorporated Far West, Incorporated Gana-A’Yoo Goldbelt, Incorporated** Golovin Native Corporation Gwitchyaa Zhee Corporation Haida Corporation Healy Lake Trade Village Corporation Hee-Yea-Lingde Corporation 94

Village Corporation Highlight:

Cape Fox Corporation

ape Fox Corporation published an abundance of positive developments in its June 2018 edition of Totem Times, the corporation’s newsletter. Cape Fox Facilities Services was awarded a five-and-half-year contract to provide professional janitorial services for US Coast Guard Base Ketchikan; the contract is valued at $405,000 and runs from October through March 2024. The scope of work includes general cleaning services, maintenance tasks, ground supervision, and facility health code adherences to ensure the health and safety of military personnel. This contract may afford local shareholders opportunities to work onsite in Ketchikan. Cape Fox subsidiary Eagle Health was awarded a $9 million contract with the Defense Health Agency in Aurora, Colorado. The contract began in June and includes all personnel and supervision necessary to perform contract resource management support services, including budgeting, accounting, reporting, systems accounting, and payments. The current contract is comprised of twenty-one positions. NAVAR, a Cape Fox subsidiary that specializes in conference planning, media, communication, logistics, construction, and administrative support, has been awarded a one-year contract with the Defense Threat Reduction Agency to provide conference planning and management services. The company also secured two new task orders with the Department of Justice for conference support and one task order with the National Institute for Standards Technology for conference and AV support services. capefoxcorp.com

Village Corporation Highlight:

Chitina Native Corporation

his year Chitina Native Corporation launched a new website, chitinanative.com. Along with the new website, the company launched a new logo that features a river flowing beneath a mountain. In its Spring 2018 Newsletter the company says, “This is an ongoing effort to modernize and project CNC and its subsidiaries in a broader market in a more consistent way. Everything from color, type of font, and graphic was considered out of many ideas.” chitinanative.com

Village Corporation Highlight:

Gana-A’Yoo

n June, the Gana-A’Yoo, (which today represents the villages of Galena, Koyukuk, Nulato, and Kaltag after a 1978 merger of the four village corporations) Board of Directors appointed Dena Sommer-Pedebone as the corporation’s new CEO. Sommer-Pedebone succeeds Betty Huntington, who retired after eleven years as the company’s CEO. GanaA’Yoo President Melissa McGinty said in a release about the transition, “In Dena SommerPedebone, we selected a very strong leader Dena Sommerand communicator who will thrive in a highly Pedebone competitive market place while balancing Gana-A’Yoo growth and sustainable operations. Dena has the ability to develop people, inspire change, and connect with our shareholders, employees, customers, partners, and other business leaders.” Sommer-Pedebone has a diverse background in multiple industries such as oil and gas, healthcare, and federal housing. She received her bachelor of business administration in marketing from the University of Alaska Fairbanks. Previous to this position, she worked for five years for Alyeska Pipeline Service Company where she held management positions in contract, supplier performance, and purchasing. ganaayoo.com

Alaska Business | September 2018 www.akbizmag.com

When it comes to Donlin Gold, we agree with our neighbors in the Yukon-Kuskokwim region. That the project should be developed not only safely and responsibly, but also in a way that provides tangible benefits to everyone â&#x20AC;&#x201C; both now and well into the future. And weâ&#x20AC;&#x2122;re working together to do just that.

1.866.669.6227 | novagold.com

ALASKA NATIVE SPECIAL SECTION | VILLAGE CORPORATION DIRECTORY

Huna Totem Corporation Hungwitchin Corporation Igiugig Native Corporation Iliamna Natives Limited Inalik Native Corporation Iqfijouaq Company Isanotski Corporation Kake Tribal Corporation Kaktovik Inupiat Corporation Kasigluk, Incorporated Kavilco, Incorporated Kenai Natives Association, Incorporated** Kijik Corporation Kikiktagruk Inupiat Corporation King Island Native Corporation Klawock Heenya Corporation Klukwan, Incorporated Knikatnu, Incorporated Kokarmuit Corporation Koliganek Natives Limited Kongnikilnomuit Yuita Corporation Kootznoowoo, Incorporated Kotlik Yupik Corporation K’oyitl’ots’ina Koyuk Native Corporation Kugkaktlik Kuitsarak, Incorporated Kukulget, Incorporated*** Kuukpik Corporation Kwethluk, Incorporated Kwik Incorporated Leisnoi, Incorporated Levelock Natives Lime Village Company Litnik, Incorporated Manokotak Natives Mary’s Igloo Native Corporation Maserculiq, Incorporated Mendas Cha-ag Native Corporation Montana Creek Native Association* MTNT Napakiak Corporation Natives of Kodiak, Incorporated** Nelson Lagoon Corporation Nerklikmute Native Corporation Newtok Native Corporation Nima Corporation Ninilchik Natives Association, Incorporated Northway Natives, Incorporated Nunakauiak Yupik Corporation Nunapiglluraq Corporation Nunapitchuk Oceanside Corporation Ohog, Incorporated Old Harbor Native Corporation Olgoonik Corporation Olsonville, Incorporated* Oscarville Native Corporation Ounalashka Corporation Ouzinkie Native Corporation Paimiut Corporation Paug-Vik Incorporated 96

Village Corporation Highlight:

Kuukpik Corporation

n 2018 Kuukpik Corporation and SAExploration entered into an agreement to extend the SAExploration/Kuukpik joint venture to December 2020. The joint venture was originally formed in November 2012 to perform contracts for the acquisitions and development of geophysical and seismic data and services. Kuukpik Corporation represents the Village of Nuiqsut and administers surface rights in the Colville River Delta (including the Alpine oilfield). SAExploration is an internationally-focused oilfield services company. kuukpik.com

Village Corporation Highlight:

Ninilchik Natives Association Loren Prosser NNAI

n January Ninilchik Natives Association, Inc. (NNAI) selected Loren William Prosser as its new CEO. Prosser has experience in commercial finance, construction management, and resource development throughout Alaska. He’s a shareholder and has been a board member since 2015. “As an NNAI shareholder, it’s a great privilege and honor to have been selected by the NNAI Board of Directors for this position. Our outgoing CEO Greg Encelewski has done an outstanding job of leading NNAI towards stable, profitable operations in recent years. I look forward to continuing the collaborative efforts of Greg and the NNAI staff to advance NNAI’s businesses and lands management and to enhance the pride and equity of our shareholders,” Prosser said in a release earlier this year. nnai.net

Village Corporation Highlight:

Old Harbor Native Corporation

n 2017, wholly-owned Old Harbor Native Corporation subsidiary Gateway Ventures was awarded two Space and Naval Warfare Center Atlantic (SPAWAR Atlantic) contracts. One is a five-year, $12 million contract to provide program, financial, schedule, risk, configuration, and documentation management support to the SPAWAR Atlantic Integrated Project Team. The Integrated Project Team provides lifecycle engineering, logistics, and program management at the direction of the Marine Corps Systems Command, which supports US Marine Corps operating forces worldwide. The second contract is a five-year, $6 million contract for program support for the SPAWAR Atlantic Integration, Interoperability, and Situational Awareness Integrated Product Team. Gateway Ventures will manage cost, schedule, performance, and risk for the team. oldharbornativecorp.com

Alaska Business | September 2018 www.akbizmag.com

SOME AIRCRAFT FLY ON JET FUEL. OURS FLY ON RELATIONSHIPS. At Pilatus, you’re not a serial number, you’re family. Our global network of sales and service centers live, work and invest in the same communities that you do -- which is why they care about you, your family and your aircraft. It also explains why they’ve been rated #1 in customer service for 16 consecutive years. Relationships like that aren’t made in a factory. Pilatus Business Aircraft Ltd • Phone +1 303 465 9099 • www.pilatus-aircraft.com Western Aircraft, Inc. • Phone +1 208 385 5155 • www.westair.com

ALASKA NATIVE SPECIAL SECTION | INTERNATIONAL OPERATIONS

Pedro Bay Corporation Pilot Point Native Corporation Pilot Station, Incorporated Pitka’s Point Native Corporation Point Possession, Incorporated* Qanirtuuq, Incorporated Qemirtalek Coast Corporation Russian Mission Native Corporation Saguyak, Incorporated Salamatof Native Association, Incorporated Sanak Corporation Sea Lion Corporation Seldovia Native Association, Incorporated Seth-De-Ya-Ah Corporation Shaan-Seet, Incorporated Shaktoolik Native Corporation Shee Atika, Incorporated Shishmaref Native Corporation Shumagin Corporation Shuyak, Incorporated Sitnasuak Native Corporation Sivuqaq, Incorporated Solomon Native Corporation St. George Tanaq Corporation St. Mary’s Native Corporation St. Michael Native Corporation Stebbins Native Corporation Stuyahok Swan Lake Corporation Tanacross, Incorporated Tanadgusix Corporation Tanalian, Incorporated* Teller Native Corporation Tetlin Native Corporation The Chenega Corporation The English Bay Corporation The Eyak Corporation The King Cove Corporation The Kuskokwim Corporation The Port Graham Corporation The Tatitlek Corporation Tihteet’aii, Incorporated Tikigaq Corporation Toghotthele Corporation Togiak Natives Tozitna Tulkisarmute, Incorporated Tuntutuliak Land Tununrmiut Rinit Corporation Twin Hills Native Corporation Tyonek Native Corporation Uganik Natives, Incorporated Ukpeagvik Inupiat Corporation Unalakleet Native Corporation Unga Corporation Uyak Natives, Incorporated Wales Native Corporation White Mountain Native Corporation Yak-Tat Kwaan, Incorporated Zho-Tse, Incorporated * Group Corporation ** Urban Corporation *** Reserve Corporation

Village Corporation Highlight:

Sitnasuak Native Corporation

itnasuak subsidiary Fidelity Title Agency of Alaska opened a new branch in Fairbanks in March. This location is in addition to existing branch locations in Anchorage and Eagle River and Mat-Su Title Agency in Wasilla, which is part of the Sitnasuak family of businesses and works in partnership with Fidelity Title. Sitnasuak CEO Roberta Quintavell said of the new branch, “Sitnasuak is committed to our many customers throughout Alaska serving each with our core values of culture, character, and contribution. We are very proud of Fidelity Title Agency of Alaska’s growth into the northern Alaska market, which is an important part of our strategy to build up our family of businesses. During the past year, we’ve analyzed our businesses, prioritized new opportunities, and identified the Fairbanks market as a longterm investment to best serve both customers and shareholders. We look forward to supporting current and new customers in Fairbanks with our quality and trusted title, escrow, and insurance services.” snc.org

Village Corporation Highlight:

Toghotthele Corporation

n the Toghotthele Corporation’s June 2018 Company Update, the corporation listed several significant highlights: since January 2018, Toghotthele attained the highest revenue in the company’s history, totaling more than $5.7 million; achieved four months of consecutive net profitability; completed the largest civil project in its history through a joint venture with Midstate Equipment; substantially completed its largest design-build vertical construction project; completed projects at Clear Air Force Base and Fort Wainwright; achieved 40 percent shareholder hire with 75 percent shareholder hire for key management; finalized a joint venture with construction company UEB Builders; implemented a digital timekeeping system for efficiency, accountability, and accuracy; and placed its sawmill on a permanent foundation, making it fully functional and able to produce quality products consistently. Toghotthele was also awarded contracts with the Spokane County Pavement Removal and Replacement project ($838,072) and the Spokane County Palouse Highway Sidewalk project ($375,761), according to its website. Contracts recently completed in the company’s portfolio include the ANICA White Mountain Store project, a design build project that included significant foundation work ($1.45 million), and an ice road and gravel pad ($4 million) for Doyon. togcorp.net

Village Corporation Highlight:

Tyonek Native Corporation

hus far in 2018 Tyonek Native Corporation has announced contracts awarded to three of its subsidiaries. Tyonek Services Overhaul Facility, a subsidiary of Tyonek Services Group, was awarded a contract to provide manufacturing services and the modification of a C-130 H model aircraft with all-digital radar warning receiver in support of the Scientific Research Corporation. TFab Manufacturing, a subsidiary of Tyonek Manufacturing Group, will support the Limited Interim Missile Warning System through a $19 million contract. BAE systems won this contract using TFab as a major-subcontractor; the scope of work includes A-Kit design and manufacture as well as installation for UH-60M aircraft. And Tyonek Global Services, also a Tyonek Services Group subsidiary, has been awarded a $16 million contract to provide integrating services of the Health and Usage Monitoring System (HUMS) for UH1N aircraft. According to the company, “Engineering design and A-Kit manufacturing will be performed at Tyonek’s manufacturing facility in Madison, Alabama. Verification and validation efforts will be performed at the company’s state-of-the-art aircraft modification facility located at the Stennis International Airport in Kiln, Mississippi. Fleet modifications will be performed by Contract Field Teams at CONUS and OCONUS locations. The HUMS system is expected to provide continuous monitoring with flight data to avoid mishaps (both aircraft and repair), reduce maintenance, and ultimately provide enhanced safety and aircraft availability.” tyonek.com

Alaska Business | September 2018 www.akbizmag.com

A Vision For The Future

“Great leadership means taking action today in order to create a better tomorrow. It’s like planting a tree. The results may not be fully realized in our lifetime, but we know the potential and that we’re planting the seeds of growth. One of the fundamentals of leadership is the growth and development of people. And so my vision for the future of the Arctic begins today – by inspiring our young people to dream more, learn more, do more and become more. By teaching them to serve people with selflessness and sacrifice, and to put the common good of our region above personal success.”

– Rex A. Rock Sr.

P R E S I D E N T & C E O, A R C T I C S L O P E R E G I O N A L C O R P O R AT I O N

OUR VOICE. OUR VISION. voiceofthearcticinupiat.org @VOICE_Arctic

SPECIAL SECTION

Alaska Native

The Ashama Point Lodge, located on Kodiak Island, is operated by Denise and Robert May.

100

Alaska Business | September 2018 www.akbizmag.com

Building up small businesses in communities statewide By Judy Mottl

here are 193 miles of terrain between Robert and Denise May, who live in the village of Port Lions on Kodiak Island, and Charlotte Nicolet and son Nick Koerber, who reside in Seward—but the two families have much in common. Both are small business owners and Alaska Native corporation shareholders who have embarked on new occupational journeys with help and support from their respective Alaska Native Corporations. Both have learned more than a few lessons from launching small businesses and overcoming their share of unique hurdles and challenges. And both represent what many politicians and economic scholars have longed hailed as the “backbone of America.”

Tapping Shareholder Business Support With a bachelor’s degree in psychology and an associate degree in digital art, running a campsite in Alaska was never at the top of Charlotte Nicolet’s to-do list—or even on the list. An author and artist whose work has been showcased abroad, Nicolet was called home to Seward a few years back to help a family member and launched a search to find steady work: a tricky proposition for many in rural Alaska. When she took stock of her options, the Chugach Alaska Corporation shareholder realized she was living in the perfect place to operate a campsite and decided to pursue the business idea. In talking with other shareholders, she learned of a Chugach Alaska Corporation grant program and applied.

“While we don’t write business plans, we can point [shareholder business owners] to resources that can help. The bottom line is helping individuals get to the next step with their prosperity.” Ashama Point Lodge

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—Millie Johnson VP of Shareholder Development Chugach Alaska Corporation

September 2018 | Alaska Business

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Shareholder Entrepreneurs

The grant, which awards up to $5,000 per recipient, is available to shareholders living inside and outside of Alaska. “It’s seed money—not a lot—but enough to get an individual to the next step, to be able to move the company forward,” explains Millie Johnson, vice president of Chugach Alaska shareholder development and relations. “It’s a stepping stone for those opening a small business.” Applicants are scored on a broad spectrum of criteria, such as the business plan and budget and must have a business license. Those applying are also provided feedback on their business ideas from award judges. “They [the judges] provide meaningful comments. Going through these criteria also helps entrepreneurs in efforts where they may seek out other funding,” says Johnson. The seed money can’t be used to pay off loans and it is taxable. So far more than one hundred shareholders have been provided funding support. Interest in the program has varied through the years since it was launched in 2004. Last

year was a boom year, says Johnson, with twelve individuals applying and ten awarded funding. Overall the program has provided $375,000 in the past fourteen years. Many applicants are Alaska Native artists seeking to sell handmade products, bed and breakfast operators, or one of a full gamut of maintenance-related businesses, from plumbing to fire protection. “While we don’t write business plans, we can point them to resources that can help. The bottom line is helping individuals get to the next step with their prosperity,” says Johnson. That’s exactly what it provided to Nicolet who, along with her son Nick, opened Seagull’s Roost Campground in Seward this summer. While she was awarded the $5,000 grant in 2015, the family business was met with a slew of hurdles from the get-go that stalled campground development for several years. Hurdles that ranged from family health challenges to weather-related obstacles. The seed funding, says Nicolet, helped with the purchase of needed tools, the creation of a

Ashama Point Lodge

ALASKA NATIVE SPECIAL SECTION | SMALL BUSINESS

Overall the Chugach Alaska Corporation’s Small Business Assistance program has provided $375,000 in the past fourteen years… Applicants are scored on a broad spectrum of criteria, such as the business plan and budget and must have a business license.

Bob May, who runs Ashama Point Lodge with his wife Denise, shows off a catch during one of the lodge’s fishing excursions.

parking lot, installation of picnic tables, and even hauling rocks from the campsites. If she were to start from scratch Nicolet says she would conduct much more research into what it takes to develop a campsite and gain a deeper understanding of the permitting process. Despite facing challenges, she’s as enthusiastic and excited today as when she first conceived the small business idea. “I would say just don’t give up. Even when life throws you all sorts of challenges, don’t give up, hang in there.”

Changing Occupational Lanes That’s exactly what Denise May says when asked about her and her husband’s experience opening two lodge operations in the village of Port Lions on Kodiak Island.

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ALASKA NATIVE SPECIAL SECTION | SMALL BUSINESS

Bristol Bay Native Corporation provides grant and start-up funding via its Bristol Bay Development Fund, launched in 2014 as a $5 million equity investment fund to catalyze in-region business initiatives, survival, and growth.

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Denise May grew up in Port Lions and moved to the City of Kodiak in 1982 when she married Robert, an Oregon native, who had come to Alaska and who she met while he was working in her father’s commercial fishing operation. About a decade later, the couple, now married thirty-seven years, was facing the decline of the commercial fishery and decided to move into a new business. They opened the Whale Pass Lodge via a ninety-nine-year land lease program offered to Afognak Native Corporation shareholders. Afognak is the combination of two Alaska Native Claims Settlement Act village corporations—Natives of Afognak and the Port Lions Native Corporation—that merged in 1977. The Afognak shareholder lease program began in 1982, providing shareholders fiveacre lease parcels located in the Afognak Bay, Raspberry Straits, Port Bailey, and Kizhuyak Bay areas. Today shareholders enjoy land use privileges on more than 175 leases. After ten years of running Whale Pass Lodge, the Mays sold last year to another shareholder and opened the Ashama Point Lodge, located on the south end of Afognak Island in Afognak Bay. The project gained notoriety from the start when its construction was featured in an episode of “Building Alaska,” televised on the DIY network. The Ashama lodge, says May, is a bit smaller in terms of maintenance and closer to the river than Whale Pass, which makes fishing, hunting, and tour expeditions easier to manage. “The Whale Pass had just proved more challenging as we got older. It was more a young man’s operation,” she says. The couple initially learned of the Afognak leasing program through a shareholder newsletter. Afognak represents more than 1,000 shareholders, and, according to its website, has partnered with the Native Village of Port Lions Traditional Tribal Council on a “multifaceted planning project” designed to create jobs and empower local small businesses. “The [regional corporation] has always been extremely helpful,” says Denise May, adding that additional support included helping the couple attain bank loans and establishing credit. They’ve also benefitted from Afognak’s online business directory because it has driven guest inquiries. “[Lodge operation] been challenging but rewarding,” May says, and there are a few

Alaska Business | September 2018 www.akbizmag.com

Shareholder SMB Services Can Be Wide Ranging Alaska Native Village and Regional Corporations take different approaches to providing services to their shareholders, and while some may not provide small business services directly, many do offer some level of assistance. Bristol Bay Native Corporation (BBNC) provides grant and start-up funding via its Bristol Bay Development Fund, launched in 2014 as a $5 million equity investment fund to catalyze in-region business initiatives, survival, and growth, according to Cindy Mittlestadt, fund manager. The fund is focused on investing in BBNC businesses but can invest outside the region if the business provides clear and tangible benefits to Bristol Bay residents, she explains. Funding ranges from $1,000 to $500,000 and is built on the concept of “nurture” capital, says Mittlestadt. Prior to providing capital investments, the fund helps business owners by introducing them to experts, offering business plan advice, and personal financing coaching. This spring the fund became a membership sponsor of the Alaska Startups Ideator—an online platform for founders, startup teams, investors and mentors to engage on business ideas. Later this year, the Bristol Bay Development Fund plans to announce ways it will partner with other entities to cohost and invest in new concepts and summits that can be demonstrated or replicated in the Bristol Bay region, says Mittlestadt. BBNC intends to join other providers in the statewide entrepreneurial ecosystem “to bolster small business start-up enthusiasm and explore incentives for businesses in Alaska.” Ahtna Native Corporation provides access to business-related educational services rather than offering incentives or land lease programs. Ahtna Native Corporation’s Son’ University helps shareholders bolster their business skills and training, says Shannon Blue, Ahtna’s corporate communications director. Courses range from self-paced eLearning to in-person workshops, and the course catalog focuses on enhancing business skills and professional expertise. Additionally, Ahtna’s 2018 Employee Training Program incorporates ASU courses to assist employees with professional development. More than 450 Ahtna employees participate in this annual program. R

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things she would do differently if she and her husband were to do it all again. She recommends new small business owners “get their ducks in a row” before launching a business, meaning they should be conducting research, preparing for potential problems, and getting ready to actually run a business. “Make sure you understand the land, the permits and processes, the licensing needed,” she adds, noting that running a lodge requires nearly a half dozen permits, from fishing to transport.

SPECIAL SECTION

Alaska Native

Goldbelt Rising on a Global Scale Federal contracting spells local success

By Tasha Anderson

oldbelt, Inc. is headquartered in Juneau. It’s an urban Alaska Native Corporation that was formed in 1974, named after a 33,000-acre mineralized zone in Southeast Alaska that stretches along the mainland from Frederick Sound to Berners Bay. The company has honored its namesake, finding success to the tune of $236 million in gross revenue in 2016, ranking the company at number 15 in the 2017 Alaska Business Top 49ers. That same year, Goldbelt was the only Alaskabased company to receive the Presidential Award for Export Achievement; this “E” Certificate was awarded for “outstanding 106

contribution to the Export Expansion Program of the United States of America.” Also in 2016, Goldbelt was ranked 7 of 4,500 8(a) companies for volume of business awarded by the federal government. The following year Goldbelt was recognized as the 2017 Small Business of the Year by the US Department of State for facilitating more than fifty worldwide international meetings sponsored by the department.

Growing Up and Out While Goldbelt has deep and binding ties to Alaska, it has certainly spread its influence beyond the state’s borders. Goldbelt President and CEO Elliott Wimberly says the company’s business model in Alaska is built on tourism, marine transportation, and managing the lands awarded to Goldbelt as part of the 1971

Alaska Native Claims Settlement Act. Outside Alaska, Goldbelt is engaged primarily in federal contracting, “which constitutes about 96 percent of our revenue source,” Wimberly says. Goldbelt’s service sectors include construction, operating as a general contractor on commercial and government contracts; IT sector support; medical services; and military support, providing weapons, ammunition, and vehicles. “We have a relationship with original equipment manufacturers and then, as a broker, resell to both the US government as well as foreign governments,” Wimberly explains. While much of that work is done within the United States, Goldbelt has global operations, performing work on five continents: North America, Africa, South America, Asia, and Europe. Working internationally “is a recent development in the last ten years and an

Alaska Business | September 2018 www.akbizmag.com

Global Asset Technologies

Goldbelt

A Goldbelt employee holds the first vetting packet to start work in Afghanistan.

extension of our services that we provide to the federal government,” Wimberly says. As an urban corporation, and unlike the regional and village corporations, while Goldbelt was awarded lands as part of the Alaska Native Claims Settlement Act, it was not awarded any money. For the first ten years that Goldbelt operated, it was primarily selling hardwood harvested on the company’s land. From timber, the company evolved into tourism, operating the tram on Mount Roberts in Juneau and conducting four- or fiveday tours in Southeast Alaska. The next step in the company’s evolution came when Goldbelt partnered with Ceour Alaska, owner and operator of Kensington Mine to shuttle mine workers between Kensington and Juneau. Federal contracting started in the late nineties and held steady until approximately 2010, when Goldbelt began to expand its federal footprint to its current state. “[Through] that federal contracting footprint, we gained experience and oppor-

tunities in international sales of services and goods,” Wimberly says.

International Footprint Goldbelt has sixteen subsidiaries that perform federal contracting work—of those, five have international expertise, “but they’re not solely relegated to international sales.” Wimberly says, “You have to have capability and knowledge and all the factors that go into international sales in order to do it, but we do not have just one specific company that is strictly international.” The company’s international footprint isn’t superficial; it leases and rents facilities overseas and direct-hires personnel in foreign locales as appropriate for the work being performed. One recent, massive project that Goldbelt undertook on the international stage was facilitating more than fifty international meetings for the US Department of State. “We did all the groundwork—back office kind of work—related to venues, hotels, air and ground transportation, interpreters,

lobal Asset Technologies trainers from the Bureau of International Narcotics and Law Enforcement Affairs’ International Police Peacekeeping Operations and Support (IPPOS) Program currently work alongside numerous police contributing countries such as Senegal, Cameroon, Togo, Burkina Faso, Benin, Rwanda, and Ghana to prepare a units for deployments to United Nations missions in South Sudan, the Central African Republic, and Mali. International Narcotics and Law Enforcement Affairs’ trainers work to ensure that police officers have the essential skills needed to safely conduct their mission while deployed. With the instability in the region and the growing hunger crisis, it is important to equip officers with the expertise to patrol neighborhoods and refugee camps, protect buildings, or quickly and appropriately respond to an emergency. On their return, they will be able to apply these same skills within their home country. The IPPOS program helps build the skills and capacity of partner country police forces to face the austere environments and meet the growing demand for police in UN Peacekeeping. IPPOS has trained nearly 10,000 police for UN missions. Global Asset Technologies has been training these officers as well as implementing a Training of Trainers program since 2015. Global Asset Technologies is a Bering Straits Native Corporation subsidiary. R

meals, all of it.” One example of the services Goldbelt provided is an anti-terrorism meeting that was scheduled in Paris sponsored by the US Department of State, at which the US Secretary of State was scheduled to speak. “We facilitated that meeting and probably over 150 diplomats attended.” The contract for these meetings spanned three years with 2018 being the last. “We’re just wrapping up that contract now,” he says. Also for the US Department of State, Goldbelt operates in Europe, Africa, and Asia, providing administrative support to US embassies. “That’s a general heading,”

“When we talk to US-based decision makers, we do bring out the fact that we are working for 3,200-plus shareholders that are in Alaska and the significance of how our profits impact their lives—that’s part of our presentation.”

—Elliott Wimberly President and CEO Goldbelt

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International Highlight

ALASKA NATIVE SPECIAL SECTION | INTERNATIONAL OPERATIONS

International Highlight

Kakivik Asset Management

Goldbelt

Companies within Goldbelt’s medical and defense group provide defense and medical-related services to the public and private sectors.

Wimberly explains. “We may provide contracting personnel for visas, security assistant to the deputy chief of mission, or documentation support. We have ninety different task orders with the Department of State worldwide.” The company also operates a Washington DC warehouse for the Department of State. In that facility, Goldbelt receives office equipment—computers, printers, fax machines—that have been pre-screened, “meaning that there are no foreign chips or bugs or anything like that” in the equipment, Wimberly says. When a US embassy requires this kind of equipment, it sources it from the warehouse. Goldbelt maintains the warehouse and exports the 108

equipment to the embassy needing it under secure conditions, preventing tampering of the equipment at any stage. Related to security, Goldbelt also prescreens personnel entering the Green Zone in Kabul, Afghanistan, for the Bureau of International Narcotic and Law Enforcement Affairs. “If a person receives a job offer from the US Department of State, we do the background check before that person is cleared to work in the Green Zone.” Goldbelt just completed a cooperative venture between the Department of State and Ukraine, shipping military uniforms and gear to the Ukrainian military in Kiev. The company received a list of requirements and then sourced, consolidated, and shipped

n 2017, following the completion of an inspection project in Western Australia, wholly-owned BBNC subsidiary Kakivik headed back Down Under for a long-term contract at a LNG facility near Perth. The work is currently on hold, but is expected to pick up in the near future. According to a Kakivik press release, “The work scope includes performing Corrosion Under Insulation (CUI) inspection to ensure the integrity of the entire production facility and flagging any areas for external corrosion refurbishment. The first two phases of the scope were initially performed last spring and fall, and were deemed highly successful by key client leadership. “CUI inspection, an examination process Kakivik has advanced using a unique technique, uses real-time radiography technology to identify areas of corrosion and wet insulation through insulated piping. The process, honed and perfected on the North Slope over the last few years, gives clients an effective and cost efficient way of ensuring that the material flowing through the pipes remains in the pipes without having to manually strip the insulation to detect areas of concern. “Kakivik’s Quality and Technology Manager Ian Moreau, who will oversee the project, says, ‘We are excited to perform this inspection process utilizing new technology. We truly believe it’s an efficient early detection tool that can save our clients millions of dollars and ensure the integrity of many aging facilities around the world.’” According to the company, “Contracting in other geographic regions allows Kakivik to grow beyond Alaska and be more profitable, which in turn means increased dividends and job opportunities for BBNC shareholders.” R

the uniforms and gear, given as a grant to the Ukrainians.

Challenges are Universal Wimberly says one of the significant challenges Goldbelt faces with its international operations is geography, and while the geography of each locale is unique, the problem certainly isn’t, as Alaskans know. Rough terrain, rural locations, and an uncertain political climate in certain areas are just a few of the challenges Goldbelt must overcome to operate internationally (and domestically, for that matter). Other issues that routinely crop up are cultural differences, language, legal structures, and even sometimes

Alaska Business | September 2018 www.akbizmag.com

—Elliott Wimberly President and CEO Goldbelt

difficulties understanding Goldbelt and its structure as an Alaska Native business and established C corporation. “For example, we often have to have business licenses in countries where we operate, and in order to do that we have to explain our corporate structure, and it doesn’t necessarily fit in places that don’t understand how we are structured.” Wimberly continues, “We deal with time zones, employment issues—sometimes there are local customs that provide employees certain rights and protections that are different than US laws.” Accounting styles can vary from country to country, and Goldbelt must comply with international export controls, whether or not they’re operating under a federal contract. Software that’s sent to the Department of Defense has to meet certain certifications and compliance requirements. “And then, of course, clearances: we have to have top-secret clearances, and our personnel have to, in many cases, maintain those clearances.” All of which must be in order for any international project to proceed smoothly. But overcoming challenges such as these produces rewards. Wimberly says, “Because of all of the barriers, or the constraints, the margins are higher. There’s additional cost related to international trade, but we also are able to charge a higher margin.” For every project, Goldbelt is conscious of how it performs and delivers on the contract expectations, so higher margins don’t change the company’s ethic or dedication to a project, just where it ends up financially. Wimberly says that working internationally has the added benefit of expanding Goldbelt’s abilities and diversifies the company’s revenue sources.

diversified stream of outside money to Alaska, which directly benefits Goldbelt’s shareholders and community. Wimberly says, “When we talk to US-based decision makers, we do bring out the fact that we are working for 3,200-plus shareholders that are in Alaska and the significance of how our profits impact their lives—that’s part of our presentation.”

Which makes sense, as the company clearly states in its vision: “Goldbelt is dedicated to building a bright future for its shareholders.” R

Tasha Anderson is the Associate Editor for Alaska Business.

Ongoing Operations Goldbelt is one year into a five-year “fairly extensive” international contract with the US Department of Defense, Pacific Airforce Command (PACAF). Goldbelt designed and installed a data center in Yongsan, South Korea. While the building existed, Goldbelt amended the building, ran all applicable cable, and installed new hardware and software to create the data center. It also transitioned a data center from Daegu to Camp Humphries, both in South Korea. The remainder of the contract involves ongoing accreditation work for the PACAF under the Profile Notification Facility Program, Resource Measurement Facility Program, Contingency Command Review Team, and Certification and Accreditation Program—“all standards that are required by PACAF as a part of their data center operations,” Wimberly says. Working in international markets brings a www.akbizmag.com

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“Because of all of the barriers, or the constraints, the margins are higher. There’s additional cost related to international trade, but we also are able to charge a higher margin.”

SPECIAL SECTION

Alaska Native

Alaska Natives Share Culture, History

Natasha Panamarioff

A brown bear watches her cubs play at the Kodiak Brown Bear Center.

Corporations diversify into visitor industry By Isaac Stone Simonelli

laska Native corporations have earned positive reputations for their work with government contracting and in the oil and gas industry. However, a number of corporations have also balanced and diversified their portfolios with tourism industry assets. One strong selling point for these businesses—beyond the wild beauty of Alaska they grant access to—is the opportunity for socially conscious tourists to directly support Native groups as well as have a direct conduit to learn about the history and the traditions of the people who have a long, deep connection to the land.

St. Paul Island Tour “The blend of traditional lifestyle with modern life is very subtle, yet very distinct. We have passionate leaders on the island who work to preserve our culture, particularly for 110

the youth and generations to come,” says Ron Philemonoff, CEO of Tanadgusix Corporation, a shareholder-owned Aleut Alaska Native village corporation that owns and operates The St. Paul Island Tour. “Our island is famous for attracting worldwide birders to the island and naturalists [and] photographers seeking incredible natural beauty… to view our fur seal population, reindeer herd, and Arctic fox. On our tour we incorporate stories of our heritage [and] language in relation to all that they see.” St. Paul Island, also known as the Galapagos of the North, is the largest of the Pribilof Islands, situated in the Bering Sea far off the coast of the Alaska mainland. “Everyone in the community is a shareholder and owner of the tour program we operate. Their only wish is that we succeed and that we sustainably operate the program for the future generations,” Philemonoff says. However, Philemonoff is not confident that with the current amount of state support the company, based in the remote community of 400 people, will last. “We do our best to support marketing of our tour program with digital delivery to targeted

channels. There is never enough money to do this adequately, and we have traditionally relied on the state tourism authority to put Alaska on the map, so to speak, as a choice destination,” he says. “The future looks troubling with just what looks like barely $3 million in state marketing funds. We will seek cooperation with other like-minded natural adventure and outdoor tour operators to maybe cooperate with us in some way to bundle our tour.” Philemonoff hopes that their membership in the American Indian and Alaska Natives Travel Association will also help boost the island’s global appeal. “The future for this cultural heritage and history [tour] is huge and growing, particularly from China and Asia, [which shows] 15 percent to 20 percent growth per year,” he says. “It is worrisome that Alaska is poorly prepared to grow for tour groups, independent groups, and individual travelers that take us off the grid. “That grid [is] large hotels and infrastructure owned by cruise ship lines, which jams people through their pipeline in a short four-month season when in fact we need another million visitors visiting us year-round.” Though the high season for the island runs

Alaska Business | September 2018 www.akbizmag.com

ALASKA NATIVE SPECIAL SECTION | TOURISM

“Our Island is famous for attracting worldwide birders to the island and naturalists [and] photographers seeking incredible natural beauty… to view our fur seal population, reindeer herd, and Arctic fox. On our tour we incorporate stories of our heritage [and] language in relation to all that they see.”

—Ron Philemonoff CEO, Tanadgusix Corporation

from May 15 to September 30, the King Eider Hotel is open all year and regardless of season guests can always book a tour. In addition to birding and wildlife viewing tours, St. Paul Island Tour provides cultural context for visitors. “We offer heritage and history, and a tour of the Russian Orthodox Church, and our museum, which is rich in natural, archaeological, and cultural history. Our community of St. Paul supports the tour program with a smile and a wave in treating all visitors to the island,” Philemonoff says. “As time permits on tour, we offer visits to our senior center offering opportunity for guests visiting the island to meet our elders and hear stories of life on the island. We also have our youth on the island learning Aleut language and offering short programs with costumes and dance.”

Kantishna Roadhouse Back on the mainland, at the heart of the tourism industry in the Interior, is the Kantishna Roadhouse, one of only four small lodges inside Denali National Park and the only Alaska Native-owned and -operated lodge in the area. “All of the lodges offer similar services; however, our lodge employs Doyon shareholders and thus guests are able to meet and interact with Native people from throughout the Doyon region,” says Marie Monroe, general manager of Doyon Tourism. Located ninety-two miles inside the national park, the full-service, all-inclusive Kantishna Roadhouse is open one hundred days a year from June 4 to September 12. Aside from those dates, the Denali Park Road is not maintained or open to traffic. The roadhouse boasts thirtytwo wood cabins that can accommodate up to five people, while the family cabin can sleep up to seven. “We function very much as any remote Alaskan village; we produce our own power, operate and treat our water system, grow a lot of our vegetables in our large greenhouse, et cetera,” Monroe says. The lodge has, in fact, recently received a Gold LEED certification in acknowledgement of its efforts in conserving energy, recycling, and striving to have a minimal impact on the natural surroundings. “A big draw for guests booking a stay in Kantishna is guided hiking. Our naturalist guide staff is made up of highly trained interpreters who not only keep guests safe on their hikes but educate them as well,” Monroe says. “Our hikes and other interpretive programs often focus on the culture and history of the www.akbizmag.com

Native people of Interior Alaska and how they have lived in harmony with nature for centuries.” In addition to boarding, Kantishna Roadhouse offers a day tour—Kantishna Wilderness Trails—that leaves the entrance of Denali National Park early every morning, arriving at the Kantishna Roadhouse for lunch and activities. Monroe points out that Alaska is a “bucket list” destination for people throughout the world, which is a boon for the tourism industry. However, she believes the state can do more to showcase the wonders of Alaska to people around the world. “There has been a decline in the amount of money appropriated in the state budget for advertising tourism in Alaska over the past several years,” Monroe says. “Travelers need to be reminded that Alaska is a safe, accessible, and exciting destination.” Though the state might be falling short of expectations for promoting tourism, Monroe points out that being owned by a Native corporation provides some stability. “Being owned by Doyon is helpful in many ways. Doyon is a diverse company and has a long history and solid business reputation in many fields of endeavor,” Monroe says. “Guests are interested and intrigued by the diversity of Doyon and the other regional corporations of Alaska.”

Koyukuk River Tribal Tours Far more remote than the Kantishna Roadhouse is Koyukuk River Tribal Tours (KRTT), which differs from other Native tourism businesses in many ways—among them ownership. “We are unique amongst Alaska Nativeowned businesses because we are a triballyowned business as opposed to an ANCSA corporation subsidiary. KRTT is owned by the Hudotl’eekkaakk’e Tribe [dba Hughes Village Council],” says Edwin Bifelt, business manager of KRTT. The company offers trips off the beaten track in a region of Alaska that is rarely visited by those who live outside of the Koyukuk River area. It’s based out of Hughes, one of six Koyukon Athabascan villages located along the Koyukuk River. “The Koyukuk River spans more than 500 miles from the Brooks Range to the Yukon River. Although there are a few tour operations based out of Bettles/Evansville, we are the only tour operation in the middle Koyukuk River area,” Bifelt says. “KRTT offers guests a short glimpse into life in rural Alaska and an September 2018 | Alaska Business

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Alaska Native community from those that live in the community. The Koyukon Athabascan people have been living a subsistence life in the Alaska wilderness for thousands of years and are excited to share our stories and culture with the world.” KRTT’s services include both unguided tours and small-group, all-inclusive guided river camping tours of three days, two nights and six days, five nights. “We are also able to offer customizable trips for groups. Hughes to Huslia is approximately 200 miles by river, so if a group wants to experience a trip between villages, we can offer that,” Bifelt adds. Elder advisors join the multi-day guided tours. “They are our greatest resources when it comes to our cultural practices and Denaakk’e language [Koyukon Athabascan] and also the history of the region,” Bifelt says. The off-the-grid base for KRTT is 200 miles from Fairbanks and accessible only by plane, operating nearly year-round with summer/fall tours from June to October and winter/spring tours from February to May. “Although it has been a challenge for KRTT to build a consistent sales channel

“Starting in 2019 the KBBC will be offering its location for corporate and organizational retreats, wildlife and environmental experiential studies, and Alutiiq cultural camps. With the other services the KBBC plans to start offering in 2019, it will become pretty much a year-round operation operating on the shoulder seasons of our bear viewing.”

—Edward Ward General Manager, KBBC

with guests, we believe that in the long-term the visitor industry will become a large part of the local economy in Hughes,” Bifelt says. “As a tribally-owned business, all profits will go to increased services and for the benefit of our tribal members and community.” Despite its remoteness of the destination, KRTT and the Hughes Village Council have big plans for boosting tourism revenue. “KRTT and the Hughes Village Council are currently planning to build a visitors’ center in Hughes, with several guest cabins and also hope to have a lodge built at one of the Koyukuk River camps in the future,” Bifelt says. “Although these are long-term goals and may take several years to put together, we believe having these assets will grow our business.”

Kodiak Brown Bear Center Also remote is the Kodiak Brown Bear Center (KBBC), a wholly-owned subsidiary of Koniag, which represents the Native Alutiiq people of the Kodiak Island archipelago. Accessible only by float plane or helicopter, KBBC is situated on Camp Island on Karluk Lake on the southwest side of Kodiak Island. Despite its extremely remote location, KBBC offers all the amenities of any upscale resort with 24-hour power, full bathrooms, WiFi, and state-of-the-art power generation and communications, says Edward Ward, the general manager of KBBC.

A brown bear plays with her cub at the Kodiak Brown Bear Center on Kodiak. Natasha Panamarioff

“KBBC offers a high-end guided Kodiak Brown Bear viewing experience for the experiential traveler, wildlife photographers, and wildlife film production and documentary companies,” says Ward. KBBC has exclusive access to more than 112,000 acres of prime Kodiak Brown Bear habitat on its Native Alutiiq ancestral lands surrounding Karluk Lake and Karluk River. “KBBC’s guided Kodiak Brown Bear viewing experience includes an in-depth immersion into our rich and vibrant Native Alutiiq culture and heritage,” Ward says. “The cornerstone of our Alutiiq heritage culture is on the very same lands the KBBC sits today. Archeological digs have discovered over seventeen Alutiiq village sites and hundreds of barabaras [sod houses] around Karluk Lake and River; 75 percent of KBBC employees are of Alutiiq descent [and] are humbled knowing that they are walking on the same land and trails their ancestors did for millennia.” KBBC’s current operating season is July to October, syncing up with the run of migrating sockeye salmon reaching Karluk Lake to spawn, which attracts bears that feast on the fish to put on their winter stores of fat, Ward explains. “Starting in 2019 the KBBC will be offering its location for corporate and organizational retreats, wildlife and environmental experiential studies, and Alutiiq cultural camps,” Ward says. “With the other services the KBBC plans to start offering in 2019, it will become pretty much a year-round operation operating on the shoulder seasons of our bear viewing.” Ward points out that being part of a regional corporation is an asset with the networking, support, and knowledge base as well as common interests the regional and village corporations have with each other. “KBBC provides not only an economic benefit for the community with all the associated goods and services we use through the different businesses,” Ward says. “It also provides opportunities for our regional corporation to give back to the community with sponsorships, donations, and local employment opportunities for shareholders, descendants, and residents of the community.” R

Isaac Stone Simonelli is a freelance journalist and former managing editor for the Phuket Gazette. 112

Alaska Business | September 2018 www.akbizmag.com

TOURISM

Indoor Winter Tourism

The Discovery Touch Tank is a popular activity at the Alaska SeaLife Center. Alaska SeaLife Center.

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Alaska Business | September 2018 www.akbizmag.com

Education and entertainment without the winter coat By Judy Mottl

laska’s snowy months are a dream many lose themselves in while skiing, snowboarding, snow machining, ice fishing, dog mushing, aurora viewing, or any other number of activities for which the 49th state is exactly suited. But between trips to the slopes and the kennels, it’s nice now and then to spend time in the great indoors, and there are many options around the state to keep the mind and body active and engaged.

Get a Game On Fall and winter are prime time for Avalanche Escape Rooms, opened in Anchorage by Jim and Heather Donner in January of 2017. Avalanche Escape Rooms offers four playing experiences: adventure games in which participants enter a themed room and use clues and elements to solve riddles and puzzles to “escape” before time runs out. The games include Blitzkrieg, where four to eight players are part of an Allied Forces team and must infiltrate a vault, survive a booby-trapped bunker, and pull off a heist. Another game, The Cure (four to six players) is a race against the clock to help a doctor save his daughter.

Regularly scheduled games take place Friday, Saturday, and Sunday afternoons and evenings, and games can also be scheduled by appointment any day of the week. In particular the holiday season brings party and special event activities to Avalanche, says Jim Donner. “We host lots of holiday parties during the week [of Christmas] and are completely booked for our regular scheduled times. In fact, we double our bookings during these times,” says Donner. Avalanche Escape Rooms draws a mixed clientele from military groups to families, students, and corporate groups or parties. “Old and young alike have a great time. Our games are not meant to be physically difficult. You must think your way through, come up with ideas and try them, and work together to escape before time runs out,” Donner adds. “You won’t see the same puzzle in different games. The challenge, can you make it out, that is what people really come for.” The variety of puzzles and themes between the different games allows guests to return and have a new experience time after time. Avalanche is currently building out two new rooms to increase the opportunity for new escape room experiences. One of the new rooms is called It’s Mine, a gold mine-themed game in which players explore a lost family mine, recover hidden inheritance, and escape traps set to protect it. For a different game experience, Alaska is now home to Dave & Buster’s, a game and restaurant chain that opened its doors in the

“There are several activities that guests can take part in. They can touch a sea urchin, sea star, or sea anemone at the Discovery Touch Tank. There is an open-air sea bird aviary where guests can get an up-close look at the unique seabirds of Alaska.”

—Monique Dorsel, Marketing and Sales Coordinator, Alaska SeaLife Center

Dimond Center in Anchorage in March. Dave & Buster’s features a full-service restaurant and a sports bar; a pool/billiards space; and a gallery of arcade games and experiences. It also offers rooms that can be used for private parties or meetings. One of its newest gaming experiences is the Jurassic World Virtual Reality Expedition, an immersive experience in which dinosaurs come to life. Via VR players are able to “roll alongside raptors, battle a T-Rex, and experience 360 degree vision and sound,” according to the company. There are also classic video games including Mario Kart, Luigi’s Mansion, and Star Wars, as well as 200 arcade games.

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Ketchikan Museums

A kindergarten class visits the Totem Heritage Center.

“We offer an authentic experience and historic context, as well as contemporary pieces that celebrate the thriving culture of Ketchikan’s First Nations peoples.” Ketchikan Museums

—Ann Froeschle Program Coordinator Ketchikan Museums

A fifth and sixth grade class visits the Tongass Historical Museum.

Southeast Culture and History Alaska’s rich history and deep cultural roots are preserved and shared through the state’s many cultural centers and museums that provide a number of programs to educate locals and visitors alike. 116

One such program is the Totem Heritage Center, which opened in 1976 and is operated by the City of Ketchikan Museum Department. The center preserves and displays the world’s largest collection of original, unrestored 19th century totem poles and is on the National Historic Register of Historic Places, according to Ketchikan Museums Program Coordinator Ann Froeschle. In the winter months the center is open Monday through Friday from 1 p.m. to 5 p.m. Visits can also be arranged by appointment.

During the winter the center is a popular school field trip destination, and visitors number about 500 with an additional 100 to 120 artists (adults and youth) attending classes in Northwest Coast native arts, according to Froeschle. A winter visit makes for a more intimate experience given summer months draw more than 35,000 visitors. In the summer of 2017, guided tours were given to nearly 4,000 guests. “The demographics of who we serve vary widely. In the summer months, we greet visitors from across the globe. Seniors and adults make up the bulk of attendance from cruise ship passengers, but we also see many, many families of all ages,” says Froeschle. “In the winter, we see more youth school groups during regular open hours, and evening and weekend classes largely cater to adults.” The center offers a self-guided tour and also has knowledgeable tour guides on hand to answer questions and provide deeper insight into the rich culture and artistic traditions of the Tlingit, Haida, and Tsimshian nations. “We also offer guided tours through several tour companies including Holland America, Alaska Coach, and Road Scholar. We offer an authentic experience and historic context, as well as contemporary pieces that celebrate the

Alaska Business | September 2018 www.akbizmag.com

“Old and young alike have a great time. Our games are not meant to be physically difficult. You must think your way through, come up with ideas and try them, and work together to escape before time runs out.”

—Jim Donner Owner, Avalanche Escape Rooms

Marine Meet and Greet The winter season is a great time to visit the Alaska SeaLife Center, located in Seward. It offers scientific knowledge of Alaska’s unique marine ecosystems and is open from Noon to 5 p.m. between October 1 and February 24. This year, to mark its 20th anniversary, the center is offering monthly promotions and has curated a new exhibit showcasing its two decades of activity, says Monique Dorsel, marketing and sales coordinator. Visiting the Alaska SeaLife Center during Alaska’s colder months provides a more intimate visit given the much smaller volume of guests. In summer the Alaska SeaLife Center welcomes roughly 130,000 visitors through its doors between April and August, compared to approximately 20,000 between September and March. “We get guests from all around the world and of all ages. The SeaLife Center is a place someone can enjoy at any age,” says Dorsel. The Alaska SeaLife Center offers several tours, including encounters such as the Mammal Encounter, the Octopus Encounter, and the Puffin Encounter. In the Octopus Encounter a group of five can shake hands with a giant Pacific octopus during a feeding session and learn about the mysterious www.akbizmag.com

and intelligent invertebrates. There is also a new interactive exhibit in the recently renovated underwater viewing area focusing on the octopus. The Puffin Encounter allows a small group of four visitors to meet puffins and other resident bird species and participate in a feeding. Tour

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

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thriving culture of Ketchikan’s First Nations peoples,” says Froeschle. The center is also a big draw for local and visiting artists, she adds, noting that in the 20172018 Native Arts Studies Program class season the list of participating teachers included Haida weaver Delores Churchill, Haida weaver Holly Churchill, Tsimshian carvers Wayne Hewson and Mike Dangeli, as well as guest instructor Haida weaver Evelyn Vanderhoop and Tlingit carver Kenneth White. “These instructors are culture-bearers dedicated to perpetuating and strengthening the traditional arts by sharing their knowledge with students, and the Totem Heritage Center is proud to help foster these precious traditional art forms for future generations,” says Froeschle. The City of Ketchikan Museum Department also operates the Tongass Historical Museum, which opened in 1967. Winter hours are 1 p.m. to 5 p.m. Tuesday through Saturday and visits can also be made by appointment. “In the winter months, we host a large number of school field trips, group visits, and independent visitors, as well as offering an array of programs bringing in approximately 1,200 patrons in the winter season,” says Froeschle. “We can create activities and crafts to suit any age group, area of study, or timeframe,” says Froeschle.

participants also learn how Alaska’s extreme seasons influence puffin behavior and appearance throughout the year. “There are several activities that guests can take part in. They can touch a sea urchin, sea star, or sea anemone at the Discovery Touch Tank. There is an open-air sea bird aviary where guests can get an up-close look at the unique seabirds of Alaska,” says Dorsel. “We always offer our encounters in the winter. Also, each winter we try to have a fun educational program/event,” she adds. R

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he state’s farming community takes advantage Alaska’s short but highly productive growing season by displaying the delectable fruits (and veggies) of their labor around the state at local farmer’s markets. The Alaska Grown program provides an extensive list of farmer’s markets and stands around the state on its website (buyalaskagrown.com/ buy/farmermarkets), and below is a sample of what’s out there now—as well as the last day each is open in 2018. The season may be coming to a close, but it’s definitely not too late to visit area farmer’s markets. Treat your taste buds, buy local!

Anchorage

The Alaska Pacific University Farmer’s Market runs throughout the growing season, taking place at Alaska Pacific University’s main campus every Wednesday from 11 a.m. to 6 p.m. The final market this year is on October 18. alaskapacific.edu The Anchorage Market & Festival is the municipality’s largest open air market and is open from May through September. The market runs from

10 a.m. to 6 p.m. on Saturdays and 10 a.m. to 5 p.m. on Sunday. The final market of 2018 will be September 8-9 at its annual location near the corner of E Street and Third Avenue. anchoragemarkets.com The Anchorage Farmer’s Market is located at 15th Avenue and Cordova Street. It’s open from May through October. The final market in 2018 is being held October 13 from 9 a.m. to 2 p.m. The Anchorage Farmer’s Market takes place in the Central Lutheran Church parking lot and features easy access and free parking. anchoragefarmersmarket.org The Center Market is a year-round farmer’s market that takes place indoors at the Midtown Mall (formerly the Mall at Sears). The market runs from 10 a.m. to 6 p.m. on Wednesdays and Fridays and 10 a.m. to 4 p.m. on Saturdays. centermarketak.com This year marks the third anniversary of the Muldoon Farmer’s Market, which is open every Saturday during the summer, this year from June through September. The last day for the Muldoon Farmer’s Market in 2018

The South Anchorage Farmer’s Market operates in two locations: on Wednesdays from 10 a.m. to 4 p.m. behind the Dimond Center and in front of the Dimond Center Hotel and on Saturdays from 9 a.m. to 2 p.m. in front of the Subway/Cellular One Sports Centre. The last day for the Wednesday location this year is September 27, and the last day for the Saturday location is October 7. safm.org

The last date for the market in 2018 is September 29, a Saturday. The market is located on Ocean Drive, across from the Washboard. homerfarmersmarket.org

Kenai

The Farmer’s Fresh Market is located in the Kenai Peninsula Food Bank parking lot and takes place every Tuesday from early June to early September. The last market this year is September 11 from 3 p.m. to 6 p.m. facebook.com/FarmersFreshMarketAK

Skagway

Fairbanks

The Tanana Valley Farmer’s Market operates on the corner of College Road and Caribou Way in Fairbanks. This market has a May through September season, open on Wednesdays from 11 a.m. to 4 p.m. and Saturdays from 9 a.m. to 4 p.m. The last date of operation this year is September 15, a Saturday. tvfmarket.com

Homer From late May through late September, the Homer Farmer’s Market is open on Wednesdays from 2 p.m. to 5 p.m. and Saturdays from 10 a.m. to 3 p.m.

In Skagway the Garden City Market is held on the third Saturday of the month from May through September. The final Garden City Market is being held this year on September 15 from 3 p.m. to 6 p.m. at the Skagway Traditional Council. skagway.com

Sitka

The Sitka Farmer’s Market takes place at the Alaska Native Brotherhood Founders Hall from July through September. The market is open on Saturdays from 10 a.m. to 1 p.m., and the last opening this year is September 15. sitkalocalfoodsnetwork.org R

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FRESH VENDORS

Farmer’s Markets

is September 29 from 9 a.m. to 2 p.m. The market is located at Muldoon Town Square in Chanshtnu Muldoon Park. muldoonfarmersmarket.org

EVENTS CALENDAR SEPTEMBER 2018

EAT

Anchorage SEPT-OCT

14-7

PLAY 

SHOP

Much Ado About Nothing

One of Shakespeare’s best, this joyful play combines mistaken identities and robust merriment with honor and court politics. Benedick and Beatrice battle their love with a merry

Anchorage

war of wits, while Claudio and Hero’s romance is challenged by rumor and deceit. cyranos.org SEPT

Battle Zone Ursa

Great Alaska Quilt Show

15-16 Join the Anchorage

Log Cabin Quilters for the Great Alaska Quilt Show. Large bed-sized,

SEPT

Alaska VegFest is organized by the Alaska Vegan Society and is an opportunity to learn from experts about a plant-based diet and vegan lifestyle. This event takes place at Grant Hall at Alaska Pacific University and features guest speakers Dr. Dean Sherzai, Dr. Ayesha Sherzai, and Lani Muelrath. alaskavegfest.com

traditional, modern, applique, machine, and hand quilted quilts, as well as wearable quilt garments made by members, will be displayed

Fairbanks SEPT

Potato Festival

Local chefs prepare a magnificent, six-course meal featuring locally grown potatoes, a different variety in every dish. The Potato Festival takes place at the Festival Fairbanks Office. festivalfairbanks.org

Champagne Pops

8 The 51st Annual Champagne Pops showcases the music of Frank Sinatra. This elegant black-tie evening features intimate cabaret style seating, fine fare, a short live auction, and a Baton Drawing— one lucky guest will conduct the ASO. All proceeds benefit the Anchorage Symphony Orchestra. anchoragesymphony.org

VegFest

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Anchorage

Battle Zone Ursa is a 15-16 nonprofit, by players for players, tabletop miniature convention focusing on multiple aspects of miniature wargaming, tournament play, and painting, this year at the Egan Civic and Convention Center. Battle Zone Ursa’s goal is to annually provide the community with a space and location to come together and meet and play against new people while growing their gaming community both locally and nationally. battlezoneursa.com SEPT

SEPT

STAY

in the ConocoPhillips Atrium. anchoragelogcabinquilters.blogspot.com SEPT

Senshi Con

Senshi Con is an annual

21-23 convention that caters to enthusiasts of Asian culture, animation, graphic novels, and gaming. It is Alaska’s largest event to share fandoms, make new friends, and enjoy a nearly endless array of costumes, live events, panels, and contests and shop favorite artists and vendors, this year at the Dena’ina Civic & Convention Center. senshicon.org SEPT

Alaska Women’s Show

Vendors celebrate everything

28-30 that makes Alaska women

Alaska Business | September 2018 www.akbizmag.com

Fairbanks SEPT

Equinox Marathon

Most of the Equinox Marathon’s course is on trails that climb up and over Ester Dome, making this running event a fun challenge. The marathon has a ten-hour cutoff, so those who choose to walk instead of run can complete the course as long as they maintain a steady pace. In addition, there’s a marathon relay, allowing participants to run just one-third of the course. equinoxmarathon.org

Girdwood SEPT

Alyeska Climbathon

The Alyeska Climbathon is

10-12 an endurance event during which participants walk, hike, and run up the steep North Face Trail of Mount Alyeska and ride the Tram down as many times as possible from 9 a.m. to 7 p.m. This event is a fundraiser for women’s cancer. alyeskaresort.com

Juneau SEPT

Capital City Brewfest

Don’t miss this popular, charity fundraiser filled with fun: live music, local food vendors, and beer from across Alaska and the world. Come grab some beer samples, bust some moves, and enjoy this annual

Girdwood SEPT

21-22 & 28-29

Oktoberfest at Alyeska Resort

Celebrate German traditions, the changing of the seasons, and, of course, beer. This event spans over two weekends and features authentic Bavarian fare and festivities including a full polka band and other live performances. Open to all ages and free admission at Alyeska Resort. alyeskaresort.com

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event hosted by the Juneau Rotary Club at the Juneau Arts and Culture Center. traveljuneau.com

Petersburg SEPT

Rainforest Festival

The festival is a nonprofit event with the goal of bringing participants closer to the natural world through education, exploration, and the arts while learning more about the rainforest and the ocean that surrounds it. Events include lectures, walking tours, workshops, and visiting artists and authors. akrainforestfest.org

6-9

Skagway SEPT

Klondike Road Relay

The Klondike Road Relay commences on Friday evening; it follows the trail of the Gold Rush Stampeders over the famous White Pass, through British Columbia, and into the Yukon, finishing Saturday, along the banks of the Yukon River in Whitehorse. klondikeroadrelay.com.

7-8

Wasilla SEPT

Beau Jest

In this comedy, Sarah is a nice Jewish girl with a problem: her parents want her married to a nice Jewish boy. They have never met her boyfriend, a WASP executive. She tells them she is dating a Jewish doctor and they insist on meeting him.

7-30

Valdez SEPT

Oktoberfest & Home Brew Competition

The annual Oktoberfest & Home Brew Competition recognizes the most talented home brewers not only in Valdez but in the state of Alaska—those who continue to push boundaries and elevate the possibilities of craft beer. America’s interest in home brewing and craft beer is at an all-time high and the craft beer landscape has exploded. valdezoktoberfest.com She plans a dinner party and, over heated protests, employs an escort service to send her a Jewish date to be Dr. Steinberg. Instead, they send Bob Schroeder, an aspiring actor who agrees to perform the impersonation. Happily, he is extremely convincing in the role and Sarah’s parents are enraptured. Soon, even Sarah falls for Bob. valleyperformingarts.org R

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EVENTS CALENDAR SEPTEMBER 2018

unique. The show features financial seminars, fashion shows, jewelry, healthcare information, and more, all at the Sullivan Arena. auroraproductions.net/women.html

Business Events SEPTEMBER

Ambitions SEPT Arctic Sheraton Anchorage Hotel:

11-12

Presenters from major companies and organizations from across the Arctic and around the world focus on the challenges and opportunities they are facing as well as their vision for sustainable development of the region. In 2018, the theme of the conference is “Tradition. Technology. Transformation.” wtca.org

Association SEPT Alaska of REALTORS Convention

11-15

Hotel Captain Cook, Anchorage: The annual convention includes keynote and guest speakers and opportunities for ECE credits. alaskarealtors.com

Alaska SEPT Museums Annual Conference

12-15

Nome: This year’s conference theme is “Relationships,” addressing questions such as “As museums adapt to shifting climates, audiences, and economics, how can we build and maintain resilient relationships for both immediate and long-term success? How do we stress resourcefulness, collaboration, and engagement in our museum relationships?” museumsalaska.org

State HR Conference SEPT Alaska Anchorage Hilton: The 2018

20-21

Conference theme is “From the Class Room to the Board Room.” alaska. shrm.org/conference

Fall Conference SEPT AASG Skagway High School: The purpose

21-23

of the Alaska Association of Student Government is to provide leadership training, communication, and student voices surrounding issues at the local, state, and national levels. aasg.org

Fire Conference SEPT Alaska Kenai: Includes training, workshops,

24-28

lectures, and a firefighter competition. alaskafireconference.com

Superintendents SEPT Alaska Association Fall Conference

26-29

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

Business SEPT Alaska Top 49ers Luncheon

Anchorage Marriott Downtown: Come honor the top forty-nine Alaskanowned companies ranked by revenue at this annual luncheon. 907-276-4373 | akbizmag.com

OCTOBER

OCT

8-11

ATIA Annual Convention & Trade Show

Fairbanks: The Alaska Travel Industry Association is the leading nonprofit trade organization for the state’s tourism industry. The theme for this year’s conference is “The Great Escape.” alaskatia.org

OCT

AAHPA Annual Conference

OCT

All-Alaska Medical Conference

Seward: This is the annual conference of the Alaska Association of Harbormasters & Port Administrators. alaskaharbors.org

8-12

Alaska Native Heritage Center, Anchorage: A continuing medical education conference organized by the Alaska Academy of Physician Assistants, providing up to twenty-five CMEs. akapa.org

11-14 OCT

17-19

Alaska Forest Association Annual Convention

Hotel Captain Cook, Anchorage: The Alaska Forest Association can be characterized as a high profile industry trade association. Its members hold in common general business interests in Alaska’s timber industry. This year is the 61st annual convention. akforest.org

OCT

18-20

Alaska Federation of Natives Annual Convention

Dena’ina Center, Anchorage: The Alaska Federation of Natives Convention is the largest representative annual gathering in the United States of any Native peoples. Delegates are elected on a population formula of one representative per twenty-five Native residents in the area, and delegate participation rates at the annual convention typically exceed 95 percent. nativefederation.org

OCT

Alaska Chamber Fall Forum

Westmark Fairbanks: Open to the public, the Alaska Chamber’s Annual Conference is the state’s premier business conference. The conference draws 200 to 225 attendees and features keynote speakers, panel discussions, and breakout sessions on issues of statewide concern to Alaska business. alaskachamber.com

23-25

OCT

23-25

Alaska Recreation & Park Association Conference

Fairbanks: The focus of the conference is threefold: opportunities for continuing education and the exchange of best practices, the chance to network with other peers, and to recognize accomplishments through the ARPA Awards Ceremony. alaskarpa.org

NOVEMBER

NOV

Sitka WhaleFest

Sitka: Presented by the Sitka Sound Science Center, WhaleFest is a science festival that celebrates marine life. The core of the festival is a unique science symposium blending local knowledge and scientific inquiry concerning the rich marine environment of our northern oceans. sitkawhalefest.org

1-4

NOV

4-10

Alaska Miners Association Conference

Dena’ina Center, Anchorage: The fall convention includes technical sessions, short courses, a trade show, and networking opportunities. alaskaminers.org

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Inside

Alaska Business September 2018

REI

ECI Alaska/REI

DCRA

multi-year project to modernize the database system for processing information vital to Alaska communities—including regional taxes, demographic data, climate change, and a wealth of other information—landed the Alaska Division of Community and Regional Affairs (DCRA) a prestigious Special Achievement in GIS Award at the 2018 Esri User Conference in San Diego, California. In early 2016, the division examined its existing database, current data collection needs, and demand for access from Alaskans—the needs of Alaska had outgrown the existing system. With a focus on providing timely and meaningful data to Alaskans, as well as streamlining and gaining efficiencies from what was a time-intensive process, DCRA started revamping everything from data collection to storage. In addition, they began developing interactive maps, new downloadable datasets, and adding historical information to better serve Alaskans. This effort will culminate with the release of a new Community Database Online later this year; some features are already available at DCCED.maps.arcgis.com. The DCRA team was one of just 175 chosen from more than 100,000 Esri clients worldwide in recognition of their innovative use of GIS to collect data, extrapolate it, make informed decisions, and effect change. DCRA was also featured in the Summer 2017 edition of ArcUser, a high-profile GIS focused magazine with more than half a million copies in print and circulation across the globe. Additionally, it was named the International Association of Assessing Officer’s Member of the Month in June of 2018. commerce.alaska.gov/web/dcra

EI Co-op is moving its Anchorage store from its current location in the Northern Lights Center to a refreshed space with an open layout in the newly remodeled Midtown Mall (formerly known as the Mall at Sears) in early 2019. REI will occupy the former Carrs-Safeway location, which is being remodeled (design by ECI Alaska). The 50,000-square-foot space will continue to offer outdoor gear; a full-service bike, ski, and snowboard shop; and outdoor experiences with REI Outdoor School. In addition, the new location will offer increased parking for cars, indoor parking for bikes, and better access to the Seward Highway. The new location in Midtown will feature a dedicated space for REI Outdoor School programs, which inspire outdoor experiences and educate the public about outdoor experiences. As a national leader in outdoor experiences, more than 375,000 people across the country joined REI Outdoor School last year to paddle, bike, camp, climb, and more. rei.com

49TH STATE ANGEL FUND

our new potential partner funds received an “intent to invest” recommendation from the 49th State Angel Fund (49SAF). The four funds selected are Anchorage Opportunity Fund II,

Blue Pipeline Fund, Alaska Seed Fund, and the Set Up Shop Fund. The Municipality intends to invest between $1.75 million and $2.5 million across all four funds by 2019. To successfully launch, all funds

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INSIDE ALASKA BUSINESS

AURORA LAUNCH SERVICES

laska Aerospace launched Aurora Launch Services, a wholly-owned subsidiary, to offer low cost launch services to both commercial and government customers worldwide. Based in Anchorage, Aurora Launch Services will be the exclusive provider for launch services at the Pacific Spaceport Complex–Alaska, located in Kodiak. akaerospace.com

OFFICE OF THE GOVERNOR

overnor Walker signed Senate Bill 63 into law, which protects Alaskans by ensuring smoke-free workplaces and public places across the state. gov.alaska.gov

SPAWN IDEAS

nchorage- and Denver-based advertising agency Spawn Ideas won two Small Agency of the Year awards at the 2018 Ad Age Small Agency Awards in Los Angeles, taking home national silver recognition in the agency culture category as well as a regional silver award for Small Agency of the Year Northwest. Presented by Ad Age, a leading source of news for the marketing community, the Small Agency Awards are the premier honors saluting outstanding work created by independent shops with 150 or fewer employees. The Small Agency Awards were presented during the annual Ad Age Small Agency Conference, which brings together hundreds of marketing, advertising, design, media, and brand professionals from around the nation to explore trends and issues impacting the nation’s small advertising agencies. spawnideas.com

USCG

he Coast Guard began enforcing new towing vessel inspection regulations, effective July 20, 2018. The regulations’ history dates back to 2004, when Congress passed the Coast Guard and

SOLID WASTE SERVICES

olid Waste Services (SWS) relocated a parking area outside the Anchorage Regional Landfill gates due to increased safety concerns. In July, SWS teamed with the Alaska Department of Transportation to build a new parking lot located approximately 0.25 miles from the previous parking area off of East Eagle River Loop Road. The original area was built to provide service access to a natural gas line. The public began using it as a parking area shortly after the bike path was completed. However, the entrance to the area is located right outside of the main landfill gate. SWS transfer trucks and other large garbage trucks exit through this gate hundreds of times a day. There have been numerous near collisions with pedestrians and cars going in and out of the parking area. As a result, Solid Waste Services has identified it as a serious safety concern. The new lot will ease safety concerns, allow convenient access to bike paths, and provide parking for approximately thirty cars—more than double the capacity of the current parking area. Solid Waste Services is covering costs associated with the new parking area and providing labor and equipment for the project. Costs for fencing, signs, and a new gate will total about $18,000. The new parking lot is now open. muni.org

Marine Transportation Act of 2004, which added towing vessels to the list of inspected vessels. For more than ten years, the Coast Guard and the towing industry have worked collaboratively to develop the regulations and a plan to transition the vessels into an inspected fleet. Referred to as Subchapter M based on their location within Title 46 of the Code of Federal Regulations, the new regulations bolster the existing requirements for fire-fighting and lifesaving equipment, establish standards for construction and arrangement of newly constructed vessels, and phases in machinery and electrical standards over the next decade. Certificates of Inspection (COI) will be issued to towing vessels in phases over the next four years. Coast Guard Sector Juneau and Sector Anchorage personnel worked with towing vessel operators throughout Alaska to prepare them for the July 20 deadline and for COI issuance. uscg.mil

SOCKEYE BUSINESS SOLUTIONS

n 2016, The Bureau of Justice Assistance launched the Sexual Assault Kit Initiative to help expedite testing of the growing number of untested sexual assault kits across the country. Knowing they could provide a solution, Anchorage-based tech company Sockeye Business Solutions developed TRUULI, a sexual assault kit tracking software. Sockeye announced the launch of TRUULI in Montana; Montana’s implementation of TRUULI allows for more than 230 entities across the state to manage kits through a secure web portal. Law enforcement, case managers, attorneys, hospitals, and labs each have unique access to the information pertaining to their job. Each kit is assigned a tracking number and is barcoded. Tracking starts when kits are distributed to collection sites, primarily medical facilities. Every kit is tracked as it moves from

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Solid Waste Services

must raise an equal or greater amount of private capital and complete 49SAF’s due diligence, negotiation, and final approval processes. To date, 49SAF’s returns total $1.6 million—all sourced from the Anchorage Opportunity Fund, managed by Anchorage businessmen John Rubini, Mark Kroloff, and Jimmy Miner. 49saf.com

KEYBANK

eyCorp launched an instant payment solution with Ingo Money. Through Ingo Push, Ingo Money’s turn-key push payment platform, KeyBank business clients can disburse guaranteed funds in real-time. Ingo Money enables businesses, banks, and government agencies to meet consumer demand for instant money proceeds while saving time and money. Through Ingo Money’s platform, KeyBank commercial clients will be able to quickly and easily turn slow, expensive paper checks and ACH deposits into instant, fully guaranteed funds that are immediately available in their customers’ accounts. Ingo Money’s network reach and intelligent routing system ensure industry leading delivery rates for these commercial clients. The latest collaboration with Ingo Money exemplifies KeyBank’s model of partnering with companies whose solutions align with the broader strategy of delivering innovations that make clients’ businesses grow, avoid risk, and be profitable. key.com

GCI

CI’s enhanced, high-speed data service launched in Talkeetna, Trapper Creek, and Petersville, giving residents and visitors the capability to watch videos, listen to music, access the Internet, and use social media apps on smartphones. These upgrades mark the latest milestones in GCI’s plan to increase its wireless footprint across Alaska. Since 2014, GCI has invested more than $180 million into its wireless network, which serves more than 240 communities. More than 97 percent of Alaskans are within GCI’s network. GCI has improved or expanded service in more than twenty-five communities, so far, in 2018. gci.com

ARCTIC SOLAR VENTURES

rctic Solar Ventures (ASV) has been recognized for its contributions to a growing industry. The Anchorage-based company installed 242.7 kilowatts of solar power in 2017, earning it an overall rank of 422 on the Top Solar Contrac-

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GREAT ALASKAN HOLIDAYS

reat Alaskan Holidays was awarded the Outstanding Safety Performance Award from Republic Indemnity. Republic Indemnity’s Outstanding Safety Performance Award is based on a recipient’s ability to demonstrate and display excellence in safety performance in an injury-free work environment for an entire year running. Great Alaskan Holidays has now been elevated to a “Superior” rating by Republic Indemnity, with an accident-free, claimsfree zero loss ratio for all of 2017. The Superior rating is achieved by few organizations in Alaska. greatalaskanholidays.com

tors list. The first Alaska company to earn a place on the list, ASV also earned rankings of 232 in the residential solar category and 218 in the EPC (engineering, procurement, and construction) category. ASV has seen four straight years of year-overyear growth in the non-residential market. In 2017, growth was 28 percent, a major highlight for the company. A large uptick in commercial projects can be seen across Southcentral Alaska in communities such as Homer, Kenai, Anchorage, and Palmer. Progress has not slowed for ASV in 2018; the first quarter of this year showed 13 percent growth compared to the first quarter of last year. The Top Solar Contractors list is developed by Solar Power World magazine annually to recognize the work completed by solar contractors across the United States. arcticsolarventures.com

CONOCOPHILLIPS

onocoPhillips entered into an agreement to sell a ConocoPhillips subsidiary to BP for an undisclosed price. The subsidiary will hold a 16.5 percent interest in the BP-operated Clair Field, with ConocoPhillips retaining a 7.5 percent interest in the field. ConocoPhillips also entered into simultaneous agreements to acquire BP’s 39.2 percent interest in the Greater Kuparuk Area in Alaska and BP’s 38 percent interest in the Kuparuk Transportation Company. In addition, ConocoPhillips updated its operating plan in Alaska.

Great Alaskan Holidays

collection site, to law enforcement facilities, labs, and storage providing a full audit trail of where each kit is and has been. sockeyeconsulting.com

Of note, since 2016 ConocoPhillips has undertaken a significant and successful exploration program in Alaska. Based on the exploration results to date, the company believes it has captured 0.5 billion to 1.1 billion barrels of oil equivalent of gross discovered resource, with 75 percent of its prospective exploration acreage still to be drilled. The cost of supply of the new resource is estimated to be less than $40 per barrel. The company has a 100 percent working interest in this resource. In the Greater Willow Area, the company now estimates its 2016-2018 exploration and appraisal campaign has discovered 400 million to 750 million barrels of oil equivalent of gross resource, with undrilled resource upside. ConocoPhillips believes this resource estimate is sufficient to justify developing the area with a stand-alone hub. Preliminarily, the company estimates first oil can be achieved by 2024-2025 for approximately $2 billion to $3 billion spent over the course of four to five years after the final investment decision. In addition to exploration in the Greater Willow Area, the 2018 exploration campaign included the drilling, coring, and flow testing of the Putu and Stony Hill wells in the Narwhal trend south of Alpine. Additional appraisal is required for both discoveries, but current discovered resource is estimated to be between 100 million and 350 million barrels of oil equivalent gross. ConocoPhillips expects another active exploration and appraisal season in 2019. conocophillips.com R

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RIGHT MOVES Zenith American Solutions

Zenith American Solutions welcomed Skeet Black to its client services team in Anchorage. As part of the executive team of a large independent pharmacy and health supply chain, Black has worked in every aspect of business development from creating national sales strategies to negotiating with overseas manufacturers. Black’s most recent role was VP of client experience, and he is excited to bring his knowledge Black to Zenith American Solutions as their Client Services Executive.

AECOM

AECOM hired environmental scientist Dan Delaney. Delaney’s background includes broad-based research for government agencies as well as practical private sector experience. He holds a bachelor’s degree in physics and astronomy as well as a master’s degree in geophysics, both from the University of Pittsburgh. As part of AECOM’s Alaska operations, he is a member of AECOM’s Pacific Northwest Region Impact Assessment & Permitting team. Delaney

Stantec

Dean Cimmiyotti, PLS, joined Stantec at its Anchorage office as the firm’s Alaska Survey Manager. He has more than forty years of in-state experience serving both public and private clients. Cimmiyotti also has more than twenty-five years of project management experience, including project planning, cost estimating, quality control, and interdepartmental coordination. In addition to surveying, Cimmiyotti has extensive background in photogrammetry and lidar acquisition and mapping. He is a registered Cimmiyotti professional land surveyor in both Alaska and Florida.

R&M Consultants

Carla Baxley, PE, joined R&M Consultants as a Senior Project Engineer in the company’s Airport Engineering Group. Baxley brings seventeen years of Alaska engineering experience to the R&M team, with twelve of those years at the Alaska Department of Transportation and Public Facilities serving as a designer, project engineer, and manager on aviation and roadway projects in rural and urban Alaska. Baxley has a bachelor’s of science in civil engineering from the University of Alaska Baxley Anchorage. She is a professional civil engineer licensed in Alaska.

AWCC

The Alaska Wildlife Conservation Center promoted Dianna Whitney to Executive Director. Whitney joined the AWCC team in September of 2016 and brings more than a decade of management and operations experience to her new assignment. Whitney has an associate of arts degree from the University of Alaska. She holds certifications in outdoor emergency care, swift water rescue, Alaska Certified Erosion and Sediment Control Lead, OSHA general construction, and OSHA construction safety and health. As Executive Director, Whitney is responsible for overseeing the administration, programs, and strategic plan of the center.

Office of the Governor

Governor Bill Walker announced the appointment of Alaska’s three newest superior court judges, who will serve in Fairbanks, Juneau, and Kenai. Thomas Temple will join the Fairbanks Superior Court. He has practiced law in Alaska for more than sixteen years after serving in the Marines during the Gulf War and working his way through college and law school at George Mason University. Temple has been in private practice in Fairbanks since 2004, with a focus on criminal defense and civil litigation. He has tried cases across Alaska, from Unalaska to Utqiaġvik. Amy Mead will join the Juneau Superior Court. After graduating from Tulane University Law School, she began her career as a law clerk in Ketchikan, working her way up to become the city’s assistant district attorney. She moved to Juneau to work in private practice, spent time working on Medicaid issues for Alaska’s attorney general, and became the city’s municipal attorney in 2013, heading the second largest municipal law department in the state. Lance Joanis will serve on the Kenai Superior Court. Joanis graduated from law school at the University of Idaho College of Law and immediately moved to Bethel to take the bar. He has worked for the Alaska Department of Law as an assistant district attorney in Anchorage and Kenai, a district attorney in Bethel and Kenai, and as the assistant attorney general in Kenai’s Child Protection Section since 2011.

United Way

United Way of Anchorage announced the addition of three staff members. Dawn Griffiths joined the organization as Chief Financial Officer and will oversee all the financial activities, information technology, human resources, and general administrative needs of the organization. Griffiths most recently ran her own firm, DMG Executive Consulting, based in Mill Valley, California. She brings almost thirty Griffiths years of consulting and management experience in accounting, sales, strategic planning, business start-ups, efficiencies, and investor relations. Griffiths is a graduate of the University of Wyoming and also attended the University of Georgia and Harvard Business School. Cassandra Stalzer has been named Senior Director of Communications and Marketing. She will oversee all facets of United Way’s communications. In 2017, she founded her own communications firm, Brainspace Creative, working on client needs from sales to marketing technology. Before that, Stalzer worked for eight years in communications at the Rasmuson Foundation, two of those as vice president, where she was instrumental in developing communications Stalzer projects ranging from a campaign to raise awareness of Alaska’s budget shortfall to a journalism partnership on the costs of alcohol abuse. Stalzer holds a journalism degree from West Virginia University and is an accredited member of the Public Relations Society of America. Frank Gerjevic joined United Way as a Communications Director. Gerjevic is a veteran of almost forty years at the Anchorage Daily News, where he worked as sports editor, reporter, copy editor, columnist, and editorial writer. A graduate of Denison University, he will concentrate Gerjevic on writing, editing, and media relations.

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RurAL CAP

The Rural Alaska Community Action Program Board of Directors named Patrick Anderson as the organization’s new CEO. Anderson brings with him more than thirty years of management and executive experience leading, guiding, and supporting companies with innovative strategies for growth, quality improvement, and process efficiency. RurAL CAP’s CEO is responsible for the organization’s consistent achievement of its mission and financial objectives. Anderson graduated from Princeton University Woodrow Wilson School of Public and International Affairs in 1975 and the University of Michigan Law School in 1978.

Alaska Railroad

The Alaska Railroad promoted George Newman to Senior Director to lead the Advanced Train Control Systems (ATCS) department. Newman joined the Alaska Railroad in November 2016 as the director of ATCS. He came to ARRC by way of the Canadian Pacific Railroad, where he served as director of PTC for seven years. Newman earned an electrical engineering degree and a master of business administration degree from the University of Calgary. He is a certified project management Newman professional and professional engineer.

Sitnasuak

Sitnasuak Native Corporation (SNC) announced that Heather SpearMorris is the new Vice President of Human Resources. Based in Anchorage, she will oversee and develop human resources functions for SNC and its subsidiary companies. Spear-Morris has more than twenty-two years of experience in human resources. She recently worked fifteen years with Calista Corporation in human resource development including shareholder training and development, Spear-Morris benefits administration, collective bargaining negotiations, and supporting high performing teams to work effectively, all of which produced increased revenues across the company.

UACED

Margo Owens Fliss is stepping into a new role as Manager of Strategic Engagement at the University of Alaska Center for Economic Develop ment (CED), and Richelle Johnson is joining the team as Lead Analyst. Fliss has led a number of high profile projects at CED, most recently as co-organizer for the VOLT49 renewable energy sprint, strategic planning for the Aleutian-Pribilof region, and managing the AmeriCorps VISTA program. Her new role as manager of strategic Fliss engagement draws on her expertise in stakeholder engagement, consensus building, and action-oriented strategy. Johnson joins the CED team from the Regulatory Commission of Alaska where she helped rural communities resolve energy challenges. Prior to this, she completed an internship at the Alaska Energy Authority. As lead analyst, Johnson uses her expertise in quantitative analysis, economics, and research to advance economic development on behalf of CED’s clients. Johnson

Resource Data

Resource Data hired Jacqueline Hall as a GIS Programmer/Analyst at its Anchorage branch office. Hall has a background in data management, technical document writing, GIS, and environmental policy. Most recently she worked as an archaeologist for LSA Associates for six years. The company also hired Kathleen Hollett as the Office Assistant for its corporate office in Anchorage. Hollett has her bachelor of arts from the University of Alaska Anchorage. She has more than twenty-five years of administrative assistant experience with an emphasis on accounting and customer service. She most recently worked for five years as an administrative assistant for the Alaska Peer Support Consortium.

First National Bank

First National Bank Alaska’s Board of Directors announced Kristi Schoenleber’s appointment as Trust Officer, joining Shannon Smith, Operations Manager, as recent additions to the bank’s Investment Management and Trust Services Department. Schoenleber brings more than twenty-five years of experience in investment management and trust services to First National. Prior to joining the bank, Schoenleber was a licensed financial consultant Schoenleber at the country’s third largest bank, working with corporations, tribal governments, and high-net-worth clients. Most recently, she was an analyst for an international bank with a focus on large corporate clients, foreign currency, and wealth management. As trust officer, Schoenleber will help customers develop and grow their wealth and estate plans. Smith’s path to the department’s operations manager position was through First National’s Audit Department. She worked as an internal auditor with experience in trust operations. In her new role, Smith will serve as an additional resource for customers, in addition to their primary relationship officer. She will focus on ensuring a high Smith level of efficiency and accuracy within the workgroup.

Ravn

Mark Swearingin, a seasoned airline maintenance executive, will be joining Ravn’s new leadership team. He has thirty-seven years of experience working with major carriers and air cargo companies, with a proven track record in optimizing operations and organizational performance. Swearingin has a bachelor of science from Purdue University and credentials in leadership and core process redesign from Bellarmine University.

Museum of the North

The University of Alaska Fairbanks has chosen Patrick Druckenmiller to be the new Director of the University of Alaska Museum of the North. Druckenmiller has worked in the museum field his entire career, more than thirty years. He hopes to oversee a renovation of the museum’s flagship exhibit, the Gallery of Alaska, and to find better ways to reach out to Alaska communities. He holds a PhD from the University of Calgary in Alberta and a master’s degree from Montana Druckenmiller State University in Bozeman. R

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ALASKA TRENDS

Alaska’s Wholesale Trade Industry Wholesale not retail Unlike retailers, wholesalers sell to businesses but not usually to customers. They seldom advertise or have walk-in traffic. The lack of contact with consumers is what distinguishes a wholesaler from a retailer, so large warehouse clubs like Costco aren’t considered wholesalers even though they serve as suppliers for restaurants or other small businesses.

1,083 Employed

in Machinery, Equipment

241 Employed

in Miscellaneous Durable Goods

114 Employed

in Metal, Mineral except Petroleum

Aleutians West Kodiak 1.0% 0.7%

holesale trade is a small and relatively invisible industry—it doesn’t have regular contact with the public, unlike retail—but it’s considered a critical cog in a well-functioning economy. Retail trade, Alaska’s largest employer, depends heavily on its smaller counterpart. On a national level, the change in sales of wholesale durable goods in considered a measure of economic well-being.

348 Employed

In Professional, Commercial Equipment

210 Employed

in Motor Vehicle Parts

106 Employed

in Lumber, Other Materials

6,377

334 Employed

in Hardware, Plumbing, Heating

Wholesale Jobs

by Category, 2017

182 Employed

in Electrical, Electronic Goods

62 Employed

2,678

in Furniture, Home Furnishing

Wholesale Durable Goods Jobs

Wholesale Jobs by Area—Alaska, 2017

76% Anchorage

3.8% Kenai Peninsula

Source: Alaska Departm

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Alaska Business | September 2018 www.akbizmag.com

6,337

6,463

6,537

6,511

6,612

6,260

6,317

6,275

6,329

6,555

6,604

Wholesale lost some ground Number of Jobs, 2007 to 2017 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Alaska’s wholesalers sold $9.6 billion in goods to retailers in 2012* *most recent year available.

ANS Crude Oil Production 07/30/2018

01/01/2014 05/01/2011 09/01/2008

N/D* Employed

1,775 Employed

in Chemical, Allied Products

in Grocery, Related Products

566 Employed

in Petroleum, Petroleum Products

01/01/2006

ANS Production barrel per day 327,458 July 30, 2018

05/01/2003 09/01/2000

400,000

800,000

1,200,000

SOURCE: Alaska Department of Revenue Tax Division

ANS West Coast Crude Oil Prices 07/30/2018

N/D* Employed

511 Employed

in Apparel, Piece Goods, Notions

in Wholesale, Electronic Markets

248 Employed

*Not disclosable to protect individual employers’ data

in Beer, Wine, Distilled Beverages

09/01/2012

09/01/2008

ANS West Coast $ per barrel $76.40 July 30, 2018

09/01/2004

09/01/2000 $0

$20

$40

$60

$80 $100 $120 $140 $160

SOURCE: Alaska Department of Revenue Tax Division

3,148

148 Employed

Wholesale Nondurable Goods Jobs

108 Employed

in Drugs, Druggist Sundries

in Paper, Paper Product

Statewide Employment Figures 10/1976—6/2018 Seasonally Adjusted 06/01/2018 01/01/2010 05/01/2004 09/01/1998

Labor Force 361,257 June 2018 Employment 335,556 June 2018 Unemployment 7.1% June 2018

01/01/1993

Mat-Su 2.5%

Ketchikan 1.7%

10% Fairbanks North Star

Other 1.1%

3.1% Juneau

ment of Labor and Workforce Development, Research and Analysis Section

Wholesale pays more than retail in Alaska

05/01/1987

Wholesale trade pays considerably more on average than retail. The $356 million the industry paid in wages in 2017 averaged about $56,000 per job, which was 6 percent higher than the statewide average wage for all industries and well above retail’s average of $31,152.

01/01/1976

09/01/1981

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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September 2018 | Alaska Business

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ADVERTISERS INDEX 49th State Brewing Company........................121 Aaron Plumbing & Heating Company...........48 ABC Motorhome Rentals..................................113 Advanced Physical Therapy of Alaska..........21 Afognak Leasing LLC.............................................35 Ahtna Inc..................................................................103 Alaska Communications.........................................3 Alaska Dreams Inc..................................................49 Alaska Energy Services LLC................................77 Alaska Growth Capital..........................................70 Alaska Pacific University......................................67 Alaska Process Industry Careers Consortium (APICC)..................................................................93 Alaska Traffic Company.......................................56 Alaska USA Federal Credit Union.................102 ALSCO...........................................................................19 Altman Rogers & Co...............................................24 Alyeska Pipeline Service Co...............................81 American Fast Freight...........................................59 American Heart Association..............................50 American Marine / Penco....................128, 129 AMS Couriers............................................................. 31 Anchorage Chrysler Dodge............................119 Anchorage Museum...............................................33 Arctic Catering & Support Services................73 Arctic Chiropractic..............................................118

Arctic Foundations.................................................42 Arctic Information Technology........................18 Arctic Office Products..........................................92 Arctic Slope Regional Corp................................91 Arctic Technology Conference........................82 AT&T...............................................................................15 Avis Rent-A-Car.....................................................115 BDO................................................................................88 Bristol Bay Native Corp..................................... 131 Business Insurance Associates Inc................. 31 Calista Corp............................................................109 Cape Fox Corp.......................................................104 Carlile Transportation Systems........................55 CBI Media Group..................................................120 CIRI..............................................................................122 Conrad-Houston Insurance Agency..............37 Construction Machinery Industrial...................2 Cornerstone Advisors..............................................9 Crowley Alaska Inc.................................................65 Cruz Companies.......................................................71 Donlin Gold...............................................................33 Doyon Limited.......................................................105 Everts Air Cargo - Tatonduk Outfitters.........84 Fairbanks Memorial Hospital.............................25 Fairweather LLC.......................................................74

First National Bank Alaska.....................................5 Foss Maritime............................................................73 GCI...............................................................................132 Harley Marine............................................................53 Historic Anchorage Hotel................................118 InsulStone...................................................................43 Jim Meinel CPA P.C................................................40 Judy Patrick Photography...............................130 Landye Bennett Blumstein LLP.........................22 Lynden Inc..................................................................89 Matson Inc..................................................................57 NANA Regional Corp.............................................63 NCB.............................................................................104 Nenana Heating Services Inc..........................111 New Horizons Telecom Inc.................................51 Northern Air Cargo................................126, 127 Novagold Resources Inc.....................................95 NU FLOW Alaska......................................................80 Pacific Northwest Regional Council of Carpenters.....................................................45 Pacific Pile & Marine.................123, 124, 125 Parker Smith & Feek...............................................75 Pathfinder Aviation................................................21 PenAir...........................................................................58 Photo Emporium.....................................................27 Quality Asphalt Paving.........................................40

Quintillion Networks.............................................90 Redpath Mining Contractors and Engineers....................................................64 RISQ Consulting........................................................17 Ritchie Brothers Auctioneers............................83 Solstice Alaska Consulting Inc......................105 Span Alaska Transportation LLC......................54 Stellar Designs Inc...............................................120 Superior Group........................................................42 T. Rowe Price.............................................................13 The Megan Room Conference & Events Center................................................79 The Plans Room.......................................................45 TOTE Maritime Alaska...........................................87 Travel Juneau..........................................................117 United Way of Anchorage....................................11 University of Alaska Southeast.........................69 Vigor Alaska...............................................................29 Visit Anchorage........................................................23 Voice of the Arctic Inupiat..................................99 Wells Fargo Bank Alaska......................................85 WesternAircraft........................................................97 Westmark Hotels - HAP Alaska.........................24 Yukon Equipment Inc........................................... 44

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