Abm dec 2013 4 web by Alaska Business

AIR CARGO AT TSAIA | ARCTIC POLICY | POINT THOMSON | URBAN ENERGY

December 2013

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Moving on up ANC Subsidiary Growth— Integrating and innovating business models Page 24

Special Sections Top Business News of 2013

Page 34

Conventions & Corporate Travel Alaska’s Abundant Venues Page 68 Conventions & Corporate Travel Directory Page 72

December 2013 TA BLE OF CONTENTS ABOUT THE COVER

DEPARTMENTS From the Editor. . . . . . . . . . . . . . . . . .Online Inside Alaska Business . . . . . . . . . . . . . . . . . 6 Right Moves . . . . . . . . . . . . . . . . . . . . . . . . . . .66 Alaska This Month . . . . . . . . . . . . . . . . . . . .81 Events Calendar . . . . . . . . . . . . . . . . . . . . . . .84 Market Squares . . . . . . . . . . . . . . . . . . . . . . .86 Alaska Trends. . . . . . . . . . . . . . . . . . . . . . . . . .87 Ad Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .90

Bowhead Transport Company General Manager Jim Dwight oversees a barge load on the docks. The company, a subsidiary of Ukpeagvik Inupiat Corporation, is considered a leader in marine industries and logistical hub support for the Arctic and is one of several Alaska Native Corporation subsidiaries featured this month in “ANC Subsidiary Growth: Integrating and innovating business models,” which starts on page 24. © Chris Arend Photography

ARTICLES

special section

VIEW FROM THE TOP

10 | Toni Walker, President Logistics, LLC By Mari Gallion

ENVIRONMENTAL SERVICES

ENERGY

16 | Urban Energy Efficiency Efforts Saving with retrofits and new designs By Eliza Evans

ARCTIC POLICY

20 | Arctic Decisions Made at National and International Levels Alaska has limited role as a state, some Alaskans can have influence By Shehla Anjum

ALASKA NATIVE CORPORATIONS

24 | ANC Subsidiary Growth Integrating and innovating business models By Tom Anderson

FINANCIAL SERVICES

30 | Direct Deposit vs. Checks Payment platforms evolve with technology By Tracy Barbour

AGC 2013 CONSTRUCTION AWARDS 40 | Associated General Contractors Name 2013 Award Winners Top construction projects and safety recognized

34 | Top Business News of 2013 Compiled by Mari Gallion special section

Photo courtesy of Cruz Construction, Inc.

Cruz Construction altered a CAT 730 Rock truck, adding wider tires, a winch, and a fi fth wheel plate to create an LGP vehicle and mounted a heated sleeper unit for crew safety.

HR MATTERS

45 | Developing People That Impact Your Bottom Line (In a Good Way) By Kevin M. Dee

OIL & GAS

46 | Maintaining the Chilled Way Tending to ice road infrastructure protects capital investments and the tundra By Judy Griffin

Conventions & Corporate Travel 68 | Alaska’s Abundant Meeting and Convention Venues Wide range of options for getting people together By Susan Sommer 72 | 2013 Directory for Conventions & Corporate Travel

50 | Point Thomson Construction Proceeding on schedule By Mike Bradner 54 | Tanker Escorts for Valdez and Cook Inlet Strikingly different measures in place By Rindi White

TRANSPORTATION

58 | Air Cargo Services at Ted Stevens Anchorage International Airport Providing benefits across Alaska and globally By Vanessa Orr

Alaska Business Monthly | December 2013

Photo courtesy of ACF

12 | Urban Water & Wastewater Matanuska-Susitna Borough By Rindi White

Top Stories of 2013

Mrs. Thatch’s ﬁrst grade class shows off books from the Anchorage Schools Foundation.

PHILANTHROPY

62 | The Alaska Community Foundation Developing permanent assets and growing philanthropy By Laurie Evans-Dinneen www.akbizmag.com

Volume 29, Number 12 Published by Alaska Business Publishing Co. Anchorage, Alaska Vern C. McCorkle, Publisher 1991~2009

EDITORIAL STAFF

Managing Editor Associate Editor Editorial Assistant Art Director Art Production Photo Consultant Photo Contributor

Susan Harrington Mari Gallion Tasha Anderson David Geiger Linda Shogren Chris Arend Judy Patrick

IN CHICAGO, THEY CALL IT

A BLIZZARD. IN ALASKA, WE CALL IT

A BREAK

IN THE WEATHER.

BUSINESS STAFF

President VP Sales & Mktg. Senior Account Mgr. Account Mgr. Survey Administrator Accountant & Circulation

Jim Martin Charles Bell Anne Campbell Bill Morris Tasha Anderson Melinda Schwab

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. . AL ASK A S I E IONWIDE M T A A N N R S I U O VICE OUR SER

December 2013 | Alaska Business Monthly

INSIDE ALASKA BUSINESS

Judy Patrick

laska photographer Judy Patrick’s new book “Arctic Oil: Photographs of Alaska’s North Slope” introduces readers to a remote region north of the Arctic Circle. The area is familiar to Native peoples who have lived there for centuries and more recently a small workforce that keeps Alaska’s mammoth oil fields producing. Judy Patrick’s photographs now bring this little-seen corner of the world to the public eye. Images of ice roads and ice islands built for winter exploration lie next to images of year-round production complexes hauled north by barge, and page turns reveal the faces of roughnecks on drill rigs. Patrick melds pristine Alaska and modern industry in each image, making “Arctic Oil” a unique and intriguing compilation. This hardbound coffee table style book showcases nearly two decades of photographs from Patrick’s extensive library of images of oil exploration and production in Alaska’s Arctic. Distribution is set for January 2014 and all pre-ordered books will be delivered signed by the photographer. Taken over two decades, these photographs showcase Alaska’s North Slope oil industry from the massive Prudhoe Bay field to the National Petroleum ReserveAlaska and beyond. Few people who

Compiled by Mari Gallion

don’t work there get to see what Alaska’s oil industry looks like, but Patrick brings the oil fields and surrounding region to life for those who will never make the trek north. Unlike Texas, North Dakota, and other oil producing regions in the Lower 48, Alaska’s oil is found north of the Arctic Circle hundreds of miles from major population centers. An unpaved, five hundred-mile single lane highway connects Alaska’s North Slope oil fields to the rest of the state. The remote location means that few people know what conditions there are like, except for the “Slopers” who travel there by air and work a two-week or longer hitch and then return home. Revenues from the oil industry make up nearly 90 percent of Alaska’s yearly state budget. State residents, regardless of age, receive an annual cash payout from the earnings of the oilwealth account, called the Permanent Fund, established decades ago when oil was fi rst discovered. In Patrick’s work the vast Arctic and industry’s presence is accurately portrayed. Readers will come away with an appreciation for the people and the science that protect an environment both pristine and rich in natural energy resources. Pre-order “Arctic Oil: Photographs of Alaska’s North Slope” at judypatrickphotography.com.

Vigor Alaska

igor Industrial renamed two of the company’s subsidiaries. US Fab, Vigor’s fabrication and shipbuilding subsidiary, is now Vigor Fab. Alaska Ship and Drydock, which operates the Ketchikan shipyard, is now Vigor Alaska, and the F/V Arctic Prowler, the first large commercial fishing vessel built in Alaska, was christened there in October. The 136 foot freezer longliner vessel, built by Vigor Alaska for Alaska Longline Company, is also the first vessel to be con-

structed in the Ketchikan shipyard’s new seventy-thousand-square-foot assembly and production hall. All types of vessels are built and serviced at the Ketchikan shipyard with a primary focus on vessels operating in Alaska waters—the shipyard also serves as the primary maintenance facility for the Alaska Marine Highway System.

Bristol Bay Native Corporation

ristol Bay Native Corporation has announced the signing of a definitive agreement with Nabors Alaska Services Corporation, a subsidiary of Nabors Industries, Ltd., to acquire a 100 percent ownership interest in its subsidiary, Peak Oilfield Service Company, LLC. Peak Oilfield Services Company, LLC is a leading Alaska energy support services company, with a unique and diverse set of capabilities that allow it to support the needs of its customers located primarily on the North Slope, Cook Inlet, Valdez, and North Dakota. Bristol Bay Native Corporation is a diversified Alaska Native Corporation with subsidiaries currently operating in the oilfield and industrial services, construction, government services, petroleum distribution, and tourism industries.

Motion and Flow Control Products, Inc.

otion and Flow Control Products, Inc., a leading distributor of fluid connectors, fluid power equipment, instrumentation products, and seals, has acquired the assets of Jackovich Industrial and Construction Supply, Inc. of Fairbanks, Alaska. The acquisition gives Motion and Flow Control Products four new locations in Alaska, including two

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Alaska Business Monthly | December 2013

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INSIDE ALASKA BUSINESS locations in Anchorage, one in Wasilla, and the Fairbanks headquarters location. The company is an industrial distributor representing leading industrial lines like Parker Hannifin, Stihl chain saws, and other key products that service the Alaska industries. In addition, Jackovich operates Parker and Stihl retail stores servicing the local needs of its locations. With the sale of the assets, sole owner Buz Jackovich is retiring from the industry. Motion and Flow Control Products will hire the company’s remaining thirtyfive employees at all four locations.

Tulugaq, LLC

ollowing the recent acquisition of VDOS, a worldwide leader in airborne remote sensing operations, Fairweather, LLC has announced the formation of subsidiary Tulugaq, LLC—the result of a partnership between Fairweather, LLC, Olgoonik Corporation, and Kaktovik Iñupiat Corporation. Tulugaq (pronounced “too-lu-gak”) is the Native Alaskan word for “raven.” The company was formed to provide specialized airborne support to further Fairweather’s remote sensing and real-time scientific data collection capabilities and offer greater efficiency to oil and gas exploration and production efforts through the ability to share assets and programming costs between projects.

Wolf Creek Federal Services, Inc.

ASA has selected Wolf Creek Federal Services, Inc. of Anchorage to provide facilities operations and repair and maintenance services at the agency’s Glenn Research Center in Cleveland, Ohio. Wolf Creek is a subsidiary of Chugach Alaska Corporation. The award is a five-year and four-month firm-fi xed price contract with an indefi-

Compiled by Mari Gallion

nite-delivery, indefinite-quantity portion to allow task orders for additional work. The base value is $40.9 million. The potential maximum value with task orders is $70.9 million. Wolf Creek Federal Services will provide preventive and reliability-centered maintenance; respond to emergency, urgent, and routine trouble calls for repairs; operate a centralized steam plant and systems for high-voltage electrical distribution, fire, security, and safety alarms and heating, ventilation, and air conditioning; and perform structural maintenance including repairs and minor modifications.

StormGeo

tormGeo, a global weather services company, has opened its first office in Alaska. With staff provided by ImpactWeather, its Houston subsidiary, StormGeo will begin operating out of Anchorage in order to better serve its Alaska clientele and optimize its growth in the Arctic Circle. Already possessing extensive experience in Greenland and the North Sea, StormGeo believes this is a critical chance to expand its service to oil and gas clients in Alaska. Aside from supporting the exploration and production operations conducted by Shell, StormGeo will also provide their Alaska clients with offshore environmental monitoring tools and onshore and offshore forecasts that are site-specific and access to meteorologists around the clock.

Harrington Industrial Plastics

This facility is equipped to make local deliveries from their fully stocked warehouse. Alaska customers will be able to take advantage of Harrington’s vast and expansive product offering that is now locally available.

Elliott Bay Design Group

lliott Bay Design Group (EBDG), the naval architecture and marine engineering firm based in Seattle, Washington, and New Orleans, Louisiana, has established an office in Ketchikan to meet growing customer demand in that region. EBDG is the preferred service provider for a number of Alaska-based companies with which it shares longstanding relationships. EBDG is a proud member of the Ketchikan Marine Industry Council and shares that body’s commitment to expanding Ketchikan’s marine industrial capacity. The Council’s diverse membership represents a cross section of Ketchikan’s business and civic leaders and highlights the city’s many strengths and capabilities. The new office is located in Ketchikan’s Ward Cove community at 7559 North Tongass Highway and will serve as EBDG’s base of operations within the state. This recent move represents months of strategic planning and occurs in alignment with the company’s stated goals to provide support to clients operating within Alaska and to serve as a regional resource for quick reaction field engineering.

The Aleut Corporation

arrington Industrial Plastics opened a branch in Anchorage at 2340 Azurite Court, Suite A. For more than thirty years Harrington has supported the Alaska market out of their Seattle location.

he Aleut Corporation has announced that its subsidiary, Aleut Fisheries, LLC, has entered into a twenty-year lease agreement with Adak Cod Cooperative, LLC to operate its Adak seafood processing facility. The lease includes the struc-

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From critical lifts to platform support, PPM is sufficiently resourced to deliver a wide range of construction services. 620B East Whitney Road I Anchorage, AK 99501 December 2013 | Alaska Business Monthly

INSIDE ALASKA BUSINESS ture containing the processing equipment, lay-down space, thirty-eight housing units, dock frontage, and fueling services. The Aleut Corporation is one of the twelve Regional Alaska Native Corporations based in Anchorage. The Aleut family of companies offers extensive product and service capabilities—including IT, communications, base operations support, mechanical contracting and construction, oil field services, and water testing—to a range of customers and government agencies.

Anchorage 5th Avenue Mall

nchorage 5th Avenue Mall, the premier shopping destination in Anchorage and its surrounding areas, has grown considerably over the past year with fourteen store openings, renovations and relocations. The 5th Avenue Mall will continue to flourish in 2014, adding a batch of new stores that will be brand new to Alaska. Fift h Avenue Mall has welcomed a wellrounded roster of international, national and local retailers in the past year. Some new names include Michael Kors, Sephora, Pandora, and Starbucks. Supporting local franchises and businesses provides shoppers a unique experience that is unrivaled in Alaska. Anchorage 5th Avenue Mall’s list of new, Alaskan-owned businesses include Apricot Lane Boutique, Oil & Vinegar, Peachwave Yogurt, Cracked Wireless, GrassRoots Fair Trade, 1 Stop Beauty, and Creative Chaos. Relocated shops include Claire’s, Payless ShoeSource and Mad Hatter.

GCI

he TERRA network is being honored with the 2013 Community Broadband Wireless Network of the Year award from The National Association of Telecommu-

Compiled by Mari Gallion

nications Officers and Advisors. TERRA is GCI’s vision to build a hybrid terrestrial fiber-optic and microwave network to serve Alaska’s remote and rural regions. TERRA Southwest, completed in 2012, brought four hundred miles of new fiber optic cable and thirteen new microwave towers constructed, providing the first terrestrial broadband network and Internet to homes in sixty-five communities in Southwest Alaska. TERRA Northwest will make broadband available to households and businesses in Nome by 2013 through a direct, land-based connection to Anchorage, the global fiber optic backbone and the Internet. Phase 1 was completed in 2012, connecting Grayling to Unalakleet and Unalakleet to Shaktoolik. Phase II to connect Shaktoolik to Nome is underway and expected to be completed this year. Phase III, extending the network to Kotzebue, is expected to be completed next year. TERRA is being honored by the National Association of Telecommunications Officers and Advisors for extending broadband to some of the most remote areas of Alaska and providing affordable service to some of the state’s least served regions and citizens.

Cook Inlet Region, Inc.

ook Inlet Region, Inc. announced the development of the first office tower in what will become the Fireweed Business Center. Once the site of the Fireweed Theater, the now vacant 8.35-acre site at the corner of Fireweed Lane and the New Seward Highway will soon be home to CIRI’s corporate offices, as well as upscale commercial office space available for lease. With panoramic views sweeping from the Chugach Mountains to Cook Inlet, the Fireweed Business Center will be Anchorage’s newest available commercial space. The office tower, centrally located

in midtown Anchorage, offers easy access to major thoroughfares, convenient parking, and state-of-the-art energy efficiency and will feature one of the most extensive collections of Alaska Native art. CIRI Land Development Company is leading the project with RIM Architects and Davis Constructors & Engineers, Inc. The 110,000-square-foot, eight-story building is being designed with the input of CIRI shareholders and employees to reflect the cultural values of sustainability, diversity, and a respect for the land. The building is projected to be completed in the winter 2014.

The Alaska Department of Fish and Game

he Alaska Department of Fish and Game has completed compilation of preliminary values for the 2013 commercial salmon fishery. Powered by a record pink salmon harvest of 219 million fish, this year’s harvest ranks as the second most valuable on record. At $691.1 million, 2013 is only exceeded by the 1988 harvest value of $724 million. In addition to setting a record for pink salmon, the total number of salmon harvested also set a new record at 272 million fish. Sockeye salmon narrowly held onto its position as the most valuable salmon species harvested in Alaska’s commercial salmon fisheries, with a statewide value of $284 million. Almost half of this came from Bristol Bay, where the price was up even though the harvest was modest. Pink salmon, riding a huge wave of production across multiple fishing areas, brought in $277 million. Chum, coho, and chinook salmon, respectively, filled the remainder of the ranks.  Send Items for Inside Alaska Business to press@akbizmag.com

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Alaska Business Monthly | December 2013

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View from the Top

Compiled by Mari Gallion

Toni Walker, President Logistics, LLC

HALF AN IDEA? When I was going to school in Illinois, I really had no idea what I wanted to do. I knew I wanted to be in the travel industry, but back in those days—especially where I came from—the travel industry meant more of a travel agency or working for the airlines. But when I got up to Alaska—I think it was just one of those things that was meant to be—I found my niche. PUTTING IN TIME: While I was getting my two degrees, I worked eighty hours a week while going to school and eighty hours a week in the tourism industry during the summer. My first Alaska job was working for Phillips Cruises and Tours doing specialized itineraries and selling glacier cruises, and I also worked in a restaurant as a hostess-maître d’: I got my feet wet a little bit in the industry that way. After getting out of college, I went to work for the Anchorage Hilton Hotel as an assistant and then was promoted up to a sales manager and worked there for five years in addition to working at different restaurants and bars, getting more experience in those areas. After five years of working for a big corporation, which was a great experience, I realized that if I was going to work so hard I might as well work for myself as opposed to working for a major company. PUSHING IT TO THE LIMIT: Our biggest market, the incentives market, always pushes us to the limits. The customers have very 10

Alaska Business Monthly | December 2013

oni Walker grew up in the Midwest on a small farm outside of Peoria, Illinois. Walker left her college in Champaign, Illinois, to follow her high school sweetheart who was stationed in Anchorage. Walker got married and went to school at Alaska Pacifi c University where she earned one Bachelor of Arts in Hotel Food Service Management and another in Tour and Travel. Eighteen years ago, after putting in many hours at various local hotels and tour companies, Walker partnered with two co-workers to found Logistics, LLC, a conference and destination management company based in Anchorage, of which Walker has been the sole owner for twelve years.

high expectations. They definitely are willing to pay the money, but they expect things to be perfect and to do something that hasn’t been done before. Our ability to figure out how that needs to be done provides the challenges that I enjoy. We’ve done things like airlift tents, tables, and chairs to the top of a glacier for a dinner; we’ve brought helicopters and physically lifted rafts and guides into the middle of nowhere, and then airlifted the guests to go rafting and then brought them back. Many years ago we did a large event: the largest train the railroad had ever pulled, which required thirty-three cars for just over two thousand people. We also did one of the largest events that Alaska Native Heritage Center had ever seen. It’s a challenge to see how we can make it work to accommodate something that has never been done before. POKER FACE: We’re in a business that sometimes doesn’t allow us many days of sleep. Sometimes we have worked twenty to twenty-two hour days, three weeks straight. Doing this, you learn that you cannot stress about things, that you have to be able to think on your feet and fi x things when they come about. Honestly, as long as you can think on your feet and fi x it, the client will never know that there was an issue, and that’s what’s most important: not to run around looking stressed out but to stay calm.  www.akbizmag.com

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ENVIRONMENTAL SERVICES

Urban Water & Wastewater: Matanuska-Susitna Borough Rendering of a proposed Mat-Su Borough regional wastewater treatment facility — estimated cost $119 million to $132 million. Photo courtesy of Mat-Su Borough

Part two in a series

By Rindi White

n the Mat-Su Borough, most households indirectly rely on the Municipality of Anchorage for wastewater treatment, so called septage treatment for the waste pumped from septic tanks. It’s a situation that some in the borough would like to see changed. One solution, a new septage treatment facility, is costly—$17 million for a system recommended recently by Mat-Su Borough engineering contractor HDR Alaska. Meanwhile, the Valley’s two main municipal wastewater treatment facilities, located in Palmer and Wasilla, are both operating with provisional permits while each tries to address disposal problems.

Mat-Su’s Wastewater Secret According to information from the Mat-Su Borough, more than 90 percent of households in Mat-Su process their wastewater using septic tanks. Septage haulers pump the tanks and transport the eﬄuent to Anchorage for discharge. Although the cities of Wasilla and Palmer have wastewater treatment facilities, neither is set up to receive septic waste. “Mat-Su septage haulers travel approximately five hundred thousand miles annually on the Glenn Highway to dispose of borough wastewater, and estimate each trip to the An12

chorage receiving station costs $229, of which $179 is allocated to travel time, fuel operations, and maintenance of the haul trucks. The remaining amount, $50, is paid to Anchorage Water and Wastewater Utility to offset the maintenance and operational costs associated with the receipt, pre-treatment, and disposal of septage in their wastewater system,” borough officials stated in a funding request to Govenor Sean Parnell earlier this year. The borough is seeking funding for land and engineering. Earlier this year, $100,000 was set aside by the Assembly for land acquisition, but Mat-Su Borough Environmental Engineer and Project Manager Mike Campfield says more would likely be needed. The borough is seeking a minimum of forty acres for the facility, and they’d like to put it near the intersection of the Parks and Glenn highways. Campfield says having the Mat-Su Borough Assembly set aside money for land for the facility is a big step, along with permission from the body to pursue additional funding from the state. While people in the wastewater treatment industry might be familiar with the problem, most residents are not even aware their waste goes to Anchorage. “Most people don’t know where their septic waste goes. They pay the septic hauler and it’s gone,” Campfield says. Then there’s the question of how long Anchorage will continue serving as MatSu’s de facto wastewater treatment facility.

Alaska Business Monthly | December 2013

Some in the Mat-Su, like longtime regional septic facility advocate Helen Munoz, say even if Anchorage allowed Mat-Su pumpers to oﬄoad waste there indefinitely, MatSu should step up and take responsibility for the waste its residents generate and not ship it to another municipality.

Existing Facilities Overloaded As part of a regional wastewater study that borough engineering contractor Hattenburg Dilley and Linnell (HDL) did in 2010, the possibility of hauling septic waste to the city of Palmer’s wastewater treatment plant was examined. But Palmer Public Works director Tom Healy, also chairman of the advisory board, says while the city might have the capacity to take septic waste, doing so doesn’t make sense. The Palmer Wastewater Treatment Plant is located near farm and residential land off Springer Road. Adding significant truck traffic would be disruptive to existing residents, Healy says. And treating septic waste, which is highly concentrated compared to the rest of the waste treated at the facility, requires special equipment, Healy says. The city is already dealing with ammonia levels that are higher than its operational permit allows; adding more waste could make the problem worse. “Our job is to operate a collection and treatment system for those connected to our collection system, not to accept waste www.akbizmag.com

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from all over the borough,” Healy says. The city operates a treatment system that handles about 1 million gallons of waste each day. As it flows into the facility, raw sewage flows through a screening process before being sent to aerated lagoons for treatment. After aeration and settling, the treated liquid is sent through an ultraviolet chamber that further disinfects the water without the use of chlorine, a move aimed at improving the quality of the eﬄuent before it is released. Since the 1980s, when the Matanuska River shifted to the Butte side of the floodplain, Palmer’s treated wastewater discharges into a side channel of the river, which is home to spawning salmon. The federal government recently lowered the acceptable level of ammonia at the outfall site and the city has had trouble meeting the new, lower permissible level. Its lagoon ponds were covered with white bubble-like fabric in an effort to increase the lagoon temperatures and speed waste processing. But Healy says the covers haven’t significantly improved treatment— the covers help keep the pond warm at the beginning of winter but Healy says they also keep the ponds cool as spring warms the soil, delaying the warm-up under the bubbles. The city is getting ready to update its facility master plan and Healy says the issue will be tackled as part of the new plan. It’s too early to say what solutions will come from the effort. But incorporating a new regional septic facility to the city’s existing treatment plant is not likely to be an option, Healy says.

Wasilla Not an Option Either Wasilla’s treatment facility, which processes about four hundred thousand gallons a day, is too small to be an option for septic pumpers to use. And, like Palmer, the city is facing compliance issues. Wasilla’s system is a hybrid of septic systems and collective waste treatment. About eight hundred properties in the city have

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city-owned collection tanks, similar to septic tanks, at the property. Liquids are routed to the city treatment plant while solids are collected and pumped every few years. The liquid is run through screens and then drained into aerated treatment lagoons, then pushed to one of nine drain fields. The fields act similarly to leach fields in private septic systems. Solids are put into an on-site aerated digester and then spread over the drain fields. Wasilla’s system is somewhat unique because it does not discharge into a local waterway. The treated water is absorbed into the ground instead, and the city must monitor its quality by testing water in wells one hundred feet from the discharge site. The offsite water regularly has too-high nitrate levels, so the city is out of compliance with its state permit. The city has requested state and federal funding to engineer a solution to reduce nitrate levels. A regional wastewater treatment facility that could help address issues both cities are facing is being considered as part of the long-term regional plan. That solution would be roughly $100 million more than a simpler septic waste facility—the cost is estimated at between $119 million and $132 million for a facility that could process 4 million gallons per day, depending on the location chosen, according to the 2010 HDL study. In 2012, the borough assembly adopted a resolution to continue planning for a regional facility and acquiring land for it. Healy says Palmer supports both a regional wastewater treatment facility and a local septage treatment facility. The cities of Wasilla and Houston have also passed resolutions supporting setting aside land for a septage and regional wastewater treatment facility, Campfield says.  Rindi White is a freelance journalist living in Palmer.

December 2013 | Alaska Business Monthly

ENERGY

Urban Energy Efficiency Efforts

Photo courtesy of the Juneau Airport

Juneau Airport renovation includes energy effi ciency measures.

Saving with retroﬁts and new designs By Eliza Evans

nergy efficiency efforts in Alaska’s urban areas are saving money and energy. Select schools in Anchorage, a library in Homer, a health center in Fairbanks, and the airport in Juneau are a few public success stories where savings are being realized through energy efficiency programs for new and existing infrastructure.

Anchorage Schools Historically, energy costs have been a huge expense for the Anchorage School District (ASD)—second only to the cost of personnel. “In an environment where energy costs are increasing, while at the same time available revenue to run critical programs is in question, it is important to administer resources to maximum efficiency,” says Andre Camara, Resource Conservation Manager (Energy 16

“As the project began, airport staff and design consultants focused on the goal of reducing operating costs at the airport. Energy efficiency measures can, and in my opinion, should be applied everywhere and in all buildings in Alaska. It is now understood that energy is a valuable resource that critically influences many short- and long-term decisions that communities and individuals face.” —Catherine Fritz, Airport Architect

& Waste Management) for Anchorage School District. “The US Environmental Protection Agency estimates that most organizations can reduce energy usage by 20 percent through reasonable resource-conservation efforts. Th rough basic changes in operations, maintenance, and individual behavior, it is expected that the ASD can achieve substantial reductions in energy use.”

Alaska Business Monthly | December 2013

In five years, 2007-2012, according to Camara, ASD energy efficiency projects saved the district around $944,000. n 2007-2008: Eight ASD schools participated in a Pilot Energy Conservation Program that centered on low to no-cost energy effi ciency measures. These measures included steps like turning lights off, closing blinds at the www.akbizmag.com

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“Many Homer residents are interested in self-sufficiency, resource conservation, and wise use of natural resources. This building was a chance to put those values into practice, and as such, make a statement about community values.” —Ann Dixon, Director of Homer Public Library

end of the day, and ensuring arctic entry doors were kept closed. These efforts saved $114,000 in energy costs in one year. n 2009 -2010: ASD measured and tracked the energy usage of its schools in order to benchmark energy usage and determine which schools had the highest energy consumption. The twenty-seven schools with the highest energy usage were selected for an intensive energy efficiency program. According to Camara, over the nine months following the implementation of this intensive program, these schools decreased energy usage by over $300,000. n 2010-2011: ASD introduced an incentive program that allowed some schools to receive 25 percent of their energy savings back. Fiftytwo schools participated by implementing low or no-cost measures, saving a total of $530,000. n 2011-2012: Alaska Housing Finance Corporation assisted twenty-six ASD schools to participate in Investment Grade Audits through funding from the federal American Recovery and Reinvestment Act. These reports are now being used to determine ASD’s future energy efficiency measures. ASD also facilitates a series of resource conservation projects to decrease energy consumption demand and cost. These include an energy optimization project that reduces electricity demand by reprogramming the automation systems that run ASD facilities and replacing inefficient lighting fixtures with light-emitting diode (LED) automation lighting.

Homer Library The Homer Public Library was the culmination of years of planning that included a series of workshops to gather input from residents; input that stated again and again the desire for a library that reflected the community’s values of sustainability. Ann 18

Dixon, director of Homer Public Library, says, “Many Homer residents are interested in self-sufficiency, resource conservation, and wise use of natural resources. This building was a chance to put those values into practice, and as such, make a statement about community values.” These community workshops led to the decision to pursue Leadership in Energy and Environmental Design (LEED) certification for the new library. “At the time LEED standards were getting a lot of attention. It was a no-brainer that a new public building should be energy-efficient and be built for the future, with low operation and maintenance costs for the city,” says Homer resident and artist Nancy Lord, who was very involved in the planning of the new library. The passive solar building takes full advantage of the local climate; its walls, floors, and windows were designed to gather, store, and distribute solar energy to heat the library in the winter and reject solar heat in the summer. Special attention was given to window placement and glazing types, shading, and thermal insulation. Using window placement, passive solar techniques also take full advantage of natural light, reducing the need for electric lighting. It uses occupancy and daylight sensors to control electric lighting and ensure it is used only as needed. Dixon says the energy efficiency measures have been effective. “The most obvious benefit is of course monetary savings in operations. Until this fall, Homer has relied on expensive oil heat, so energy efficient construction only makes sense. While it hasn’t been inexpensive to heat the library, the cost has been reasonable in terms of the size and quality of the facility, as well as the heavy use by the public.”

Fairbanks Health Center With some of the highest utility costs in the nation, energy efficiency is becoming increasingly important in Fairbanks. The Tanana Chiefs Conference (TCC) Chief Andrew Isaac Health Center is a model building in energy efficient construction and environmental building systems. This

Alaska Business Monthly | December 2013

facility, constructed under a Joint Venture Construction Program between the TCC and the federal Indian Health Service (IHS), is the first LEED Gold certified health center in Alaska. Initially LEED Silver certification was planned. Arcadis Project Manager Glen Kravitz wrote in an email that “IHS funding required LEED Silver certification and TCC leadership asked the question: ‘What would it take to achieve LEED Gold?’ After being presented with the additional LEED requirements and probable costs, TCC said ‘go for it.’ With the owner fully committed to achieving a higher standard of energy efficiency beyond what was required, the owner, design team, contractor, city, and borough… and all of us at Arcadis got together and worked collaboratively to make it happen.” This collaborative design team also included Bettisworth North Architects and Planners (Prime Architects and landscape architects), NBBJ (medical planners, design architects, and LEED consultants), Jones and Jones (cultural design advisors and landscape architects), Design Alaska (mechanical engineers), Martha Hanlon (medical facility and equipment planner), and PDC Inc. Engineers (civil, structural, electrical engineers). Ghemm Company was the general contractor. The Chief Andrew Isaac Health Center includes an abundance of energy efficiency measures. The building is heated by waste hot water from the local power plant using variable speed pumps to match building heating demand loads. The exterior walls and roof system have high thermal resistance rating. Low-flow plumbing fixtures conserve water. Variable air volume air-handlers reduce energy used for ventilation, heating, and cooling the building. An energy efficient heat recovery ventilation system provides fresh air and improved climate control. Energy efficient light fixtures and a lighting control system are used throughout the building to optimize lighting with less electricity use.

Juneau Airport In 2008, the City and Borough of Juneau began the Airport Terminal Renovation www.akbizmag.com

and Expansion Project, a multi-phase project, with help from the Alaska Energy Authority. “As the project began, airport staff and design consultants focused on the goal of reducing operating costs at the airport,” says Catherine Fritz, airport architect. “Energy efficiency measures can, and in my opinion, should be applied everywhere and in all buildings in Alaska. It is now understood that energy is a valuable resource that critically influences many short- and long-term decisions that communities and individuals face.” The airport’s energy efficiency efforts include a system that is programmed to the use patterns of the facility, allowing heat pumps to respond to the specific cooling and heating needs of smaller areas within the terminal, rather than maintaining one temperature. Other efforts include new energy efficient lighting systems, new windows to improve weatherization, and a light refracting awning. “Areas of new construction have a modern thermal envelope that includes high performance glass and roof insulation of approximately R-50,” Fritz says. “Existing building areas were upgraded with con-

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temporary lighting [including LEDs], light shelves in the southern facing departure lounge, improved efficiency plumbing fi xtures, as well as the geothermal electric heat pump system throughout the areas affected by construction to date.” The Juneau Airport ground source heat pump transfers geothermal energy into a liquid-filled piping loop which provides the energy necessary to heat and cool the facilities, provide hot water, and maintain an ice-melt system in the sidewalks. “A primary benefit at the airport has been the reduction of fuel costs, which has allowed operating funds to be used for other important uses,” Fritz says, adding that the annual operational cost savings are approximately $100,000. “We have gained significant confidence in trying new systems, understanding more about the total picture of energy usage in our building.”

Public Retrofits Alaska Housing Finance Corporation (AHFC) is a public corporation in Alaska that provides finance, housing, and energy programs throughout the state. AHFC’s programs include a series of programs focused on improving energy efficiency in

public buildings throughout Alaska. According to John Anderson, AHFC operations officer, Research and Rural Development, the corporation began providing energy efficiency programs in the early 1990s, beginning with a federal Department of Energy weatherization program. “Our key philosophy is that energy efficiency is the foundation to energy supply,” Anderson says. “Regardless of the source, using less energy saves money, extends supply, and has shown to be a motivating factor for energy efficient improvements due to the cost of energy.” The Alaska Energy Efficiency Revolving Loan Fund (AEERLP) is one of AHFC’s energy efficiency programs and focuses on publically owned buildings. AEERLP pays for retrofits to improve the energy efficiency of these buildings. Anderson says AEERLP “provides financing for permanent energy-efficient improvements to buildings owned by regional educational attendance areas, the University of Alaska, the state, or municipalities in the state.”  Eliza Evans is an Alaskan author.

December 2013 | Alaska Business Monthly

ARCTIC POLICY

Arctic Decisions Made at National and International Levels Alaska has limited role as a state, some Alaskans can have inﬂuence By Shehla Anjum Third and final part of a series

©Steven Kazlowski/AlaskaStock.com

An adult polar bear, the iconic symbol of the Arctic, stands upright on hind feet in search of seals to eat on sea ice ﬂ oating off the coast of Svalbard, Norway.

he Arctic is opening, posing opportunities as well as risks. Some see the potential for oil and gas exploration and new shipping routes as positives. Others see dire consequences from severe storms, wildlife effects, coastal erosion, and melting permafrost. As the nation’s only Arctic state, Alaska will feel the effects first, for better or worse. But it is unclear how much Alaskans can influence key Arctic policy decisions. Those decisions are made far from the state on the national and international levels, and Alaska’s role is limited. Nations that share the Arctic, and even nations far from the north, like China, Singapore, and India, are now part of a multinational group, the Arctic Council. Alaska is not part of this. 20

Alaskans must work through the channels they have, which are several, to influence the US delegation to the Arctic Council. Eight nations that are considered “Arctic” formed the Arctic Council in 1996 and are its permanent members. They include Canada, Denmark (which includes Greenland and the Faroe Islands), Finland, Iceland, Norway, Russia, Sweden, and the United States, because of Alaska. However, the member states are not bound by a treaty and the Council has no legal authority on its own. Nations rotate the chairmanship at two-year intervals. Sweden has completed its turn, and Canada is now the chair. The United States will take over as chair in 2015. In 2017 the United States turns the chairmanship over to Finland. Though its

Alaska Business Monthly | December 2013

status is informal, the Council does now have a full-time Secretariat, or staff office, that is located in Stockholm. Every two years, when the chairmanship rotates, the council meets in a ministerial-level session and issues a formal, but non-binding “declaration” that reviews past work and outlines future projects. The Council’s agreements are those of its members, which pledge themselves to enforce the agreements. Two agreements have been adopted now: an emergency response agreement in 2011 and an oil spill response agreement reached this year. These do commit member states to pool resources in responses. Further agreements are likely. One being discussed is sharing research and providing access to members’ Arctic continental shelves for www.akbizmag.com

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research. This may be a touchy subject for some members, however, such as Russia and possibly Canada, who are sensitive to territorial sovereignty. So how does Alaska fit into the Council’s work? Procedurally, Alaska must work through the US delegates, which are headed by the US State Department. Formally, the US Secretary of State is the actual council member along with other members’ counterparts of equal rank, although day-to-day matters are handled by subordinate officials, in the United States’s case by Julie Gourley, the US State Department’s senior Arctic official. An interesting development is that, with climate change, the Arctic, and the Arctic Council, are now getting more attention from senior officials in the US government. Then Secretary of State Hillary Clinton attended the Council ministerial meeting in Nuk, Greenland, two years ago, and John Kerry, the current Secretary of State, attended the 2013 meeting in Kiruna, Sweden earlier this year. The presence of a US cabinet member at the meeting attracted widespread attention and substantially elevated interest in Arctic matters and the international status of the Arctic Council. Alaska has no formal role at the Council meetings. However, state officials can be, and have been, members of the council’s various working groups. For example, Larry Dietrick, former state oil spill response director, was a member and an active participant in the Council’s Emergency Prevention, Preparedness, and Response working group. This is important because it is at the working group level that the heavy-lifting staff work gets done on policy initiatives. In addition to the eight member states, several other entities and countries are involved at different levels in the Council. One unique feature of the Arctic Council is that it is one of few multinational bodies that grant a special status to indigenous groups. Six indigenous groups are “permanent participants” and play an active role in the Council’s deliberations and participate in its negotiations and discussions. What’s also important is that Alaska Natives are leading several groups like the Inuit Circumpolar Conference, one of the Council’s six permanent participants. Permanent participants are allowed to attend and participate in Council meet22

ings, which gives Alaska Natives direct access to top-level officials of the member nations. Permanent participants can also engage in the working groups and can even chair working groups. There is also the Indigenous Peoples Secretariat, a staff group that works with the Council’s Secretariat in Sweden. Finally, there are “permanent observers,” nations or even organizations that are given official recognition to attend Council meetings to observe, but not participate. Great Britain, for example, has long had observer status. In 2013, the council, cognizant of increasing global competition for the Arctic’s resources, added six more permanent observers at its biannual meeting, doubling the number from six to twelve. Five of the six new permanent observers are Asian (China, India, South Korea, Japan, Singapore) and one is European (Italy). That move attracted a lot of attention. But it is clear that although they are far from the Arctic these nations are interested in Arctic resources and shipping routes and want to at least be near the policy table if not at it. Alaska’s Lieutenant Governor Mead Treadwell, who has long been involved in Arctic policy matters, takes the position that it is better to include these nations as observers rather than try and exclude them. “It’s better to include them, because you don’t them going off to form their own group,” Treadwell says. Observers are not without status, however. They can participate in the Council’s working groups. Some close observers of the Arctic Council such as Patricia Cochran, executive director of the Alaska Native Science Commission, are critical of the Council for not better defining the roles of the observers. “The status of the observers is not well defined, and I think this is one of the failures of the Arctic Council,” she says. Cochran is originally from Nome and was involved for several years in Arctic Council matters, representing the Inuit Circumpolar Council from 2006 to 2009. (Jimmie Stotts, from Barrow, now heads the ICC.) Cochran also served as chair of the Indigenous Peoples’ Secretariat to the Arctic Council. Cochran’s concern is that observer nations with financial clout, like China, may be able to wield outsized influence in the working groups, particularly since all Arc-

Alaska Business Monthly | December 2013

tic nations, including the United States, have few financial resources to commit to Arctic projects like infrastructure. Also, although observers cannot participate at full Council meetings on their own initiative, they can be invited to participate at the meetings by member nations, Cochran says. For example, Denmark, which represents Greenland, may be one Council member that China can rely on. Chinese mining companies are making heavy investments in Greenland in joint-ventures with Australian firms. Cochran’s real concern, however, is that as observer nations accumulate more influence in the working groups, and indirectly on the Council, the influence of indigenous groups, their formal recognition notwithstanding, will be diluted. “Some of these newly-recognized observers have terrible human rights records, and we’re now expecting them to be respectful of Arctic indigenous peoples? It’s a little frightening,” Cochran says. Cochran has reason to be concerned. The spate of news about what other farflung nations want in the Arctic keeps growing. There are even hints of conflicts—Russia recently flexed its muscles and reopened an abandoned naval base off its Arctic Coast. That reopening was interpreted as “an apparent bid to protect the new northern shipping route to Asia, as well as to secure the region’s vast energy resources,” according to the Economy Watch news site. There is some talk of devising a global regime for the Arctic under the auspices of the United Nations. Shyam Saran, a former Indian Foreign Secretary, proposed that idea a few months ago. Saran, writing in The Hindu newspaper, considered the “global commons” character of the Arctic and suggested that the UN set up its own Arctic body. Such a body would “provide the international community the capacity to monitor what is happening in the region, draw up strict norms for activities, taking into account, and put in place a credible and effective compliance mechanism.” Without a hint of irony, Saran goes on to say, “India could certainly push for such a global regime without violating its role of Observer at the Arctic Council.” There are other bodies engaged in Arctic matters that are outside the Arctic Council. One is the US Arctic Research Commission (ARC), a body of citizens and scienwww.akbizmag.com

tists appointed by the president, which advises US government agencies on Arctic research priorities. Several Alaskans are members of the commission, and its chair is Fran Ulmer, a former lieutenant governor. Treadwell was the previous chair of the ARC. That two of the commission’s five priorities deal with indigenous peoples (human health and cultural preservation) and a third deals with community infrastructure impacts from climate change demonstrates the Alaska influence on the commission. Two other ARC priorities are observing and understanding environmental changes and understanding natural resources. The principle way of strengthening indigenous culture, interestingly, is to help preserve Native languages, a priority for the federal commission Treadwell established during his tenure as ARC chair, and that has been continued by Ulmer. Indigenous languages are important because a great deal of traditional knowledge important to scientists is stored and expressed through local languages, Treadwell says. If the federal research commission’s goals reflect Alaska influence, the federal government’s Arctic “strategy,” as it is emerging, seems not to. The strategy, which is meant to prepare for the US turn as chair of the Arctic Council, was released earlier this year and emphasizes security and environmental concerns with, so far, no mention of the economic opportunities in the Arctic, like oil and gas and shipping, or real environmental risks like oil spills from shipping. Canada’s priorities during its current tenure as chair of the Council, in stark contrast to US strategy, emphasize responsible resource development, safe shipping, and sustainable communities through local jobs and business development. Local jobs and business development are of prime interest to Alaskans, too, and so is marine safety in the Arctic and in congested waters like the Bering Strait. The Bering Strait is getting a lot of attention. Oil tankers and freighters are using Russia’s Northern Sea Route in increasing numbers. This summer the Yong Sheng, a Chinese cargo ship received international attention as it journeyed through Russian Northern Sea Route, which shortens the voyage between China and Europe by thousands of miles. Alaskans worry about the lack of rewww.akbizmag.com

quirements for the shipping companies to have spill contingency plans, unlike shipping in Alaska waters. In fact, there are not even “rules of the road” and traffic lanes agreed on between Russia and the United States for vessels in the Bering Strait, a matter of real concern to the US Coast Guard. Another group engaged in Arctic issues that will address marine safety, is the International Maritime Organization, a body that establishes rules for international shipping. Recognizing the increased shipping in the Arctic the International

Maritime Organization is now working on a special “Polar Code” of guidelines for ships that transit the Arctic. These are expected to be finalized in 2015. Developments in the Arctic will continue at a frenetic pace. Alaskans have a role to play in the discussions about the Arctic’s future and they have to prepare for the big changes that await an area whose riches are coveted by many.  Shehla Anjum is an Anchorage-based writer.

December 2013 | Alaska Business Monthly

ALASKA NATIVE CORPORATIONS

ANC Subsidiary Growth

ANC Subsidiary Integrating and innovating business models

Bowhead Transport Company barges loaded with cargo for the Arctic.

rom sea to land to sky, Alaska Native Corporation subsidiaries are integrating the latest technologies, most innovative business models, and talented managers to achieve notable success despite a struggling state and national economy.

They Deliver, Ice or no Ice Bowhead Transport Company Ukpeaġvik Iñupiat Corporation When the subject of development in the Arctic surfaces in legislative committees and international forums held in Alaska and abroad, an integral facet of the deliberation is transportation within such a harsh and fickle environment. Bowhead Transport Company is a subsidiary of Ukpeaġvik Iñupiat Corporation (UIC) within its marine services division. Bowhead, named after the behemoth Arctic whale that is culturally and geographically tethered to subsistence (and second in size only to the blue whale), is a marine company that delivers to and ships from Alaska’s Arctic region. It was in 1973 that UIC, the Barrow village corporation, officially incorporated. From stores to construction to insurance, by 1982 the thriving corporation targeted much needed Arctic barging services by forming Bowhead for operations in the Chukchi and Beaufort Seas. Considered a leader in marine industries and logistical hub support, Bowhead transports general and sensitive cargo. Bowhead continues to grow in a burgeoning market, most recently forming a joint-venture with Crowley Marine Services (UIC Bowhead-Crowley), centering on oil and gas development, specifically from Point Thomson to Wainwright. Bowhead owns or charters ocean-going 24

and lighterage vessels of all sizes. Bowhead has nine administrative employees year round and up to thirty-two employees in the summer, including UIC shareholders, for terminal and cargo operations and the marine crews during the open water season. A salient feature to its delivery service is in August and September when back-hauling hazardous waste, contaminated soils, scrapped steel, and demobilized equipment out of Alaska. Over the last three years, between two thousand and four thousand tons of waste materials have been removed from Alaska by Bowhead and facilitated through remediation companies. In the last year, Bowhead crews found that in some areas of delivery the loss of ice and erosion is phenomenal. Approximately one hundred feet of beach recently disappeared between Camp Lonely and Point Lonely that used to be a shallow approach but is now a cliff. That means one hundred feet of waterfront is gone because of the higher sea state. In the Arctic shipping industry, shippers either acclimate to changing conditions or moor their vessels and close shop. Bowhead is meeting environmental challenges by building a new 150-foot landing craft aimed at being the backbone of its lighterage operations, launching it in 2014. The launch of a new and re-designed website will also help to modernize the company’s digital and online information and messaging.

Just Around the Corner Eklutna Real Estate Services Eklutna, Inc. When one hears the name Eklutna, either the potable glacial lake in Chugach State

Alaska Business Monthly | December 2013

By Tom Anderson Park, or the new Eklutna Generation Station under construction by Matanuska Electric Association might come to mind, but for the most part Eklutna Village Dena’ina and its village corporation Eklutna, Inc. are the synonymous namesakes for the culture and people that bear the name. An expanding subsidiary of Eklutna, Inc. is Eklutna Real Estate Services, LLC (ERES). Led by Greg McDonald, the broker and general manager, ERES oversees property management and leasing of the commercial properties Eklutna owns and asset manages the Eklutna ground leases throughout the Municipality of Anchorage. Many Alaskans don’t realize how many properties are owned and leased by Eklutna. Eklutna owns the Centerfield building in Eagle River; the FBI Annex on Fifth Avenue and A Street; the ground that the FBI headquarters and Office Depot are on between Fifth and Sixth Avenues in downtown Anchorage; and the office building at 3335 Arctic Boulevard. The company also owns the ground the Spenard Builders Supply store sits on in Eagle River (lease land) and the Spenard Builders Supply truss plant in Birchwood and has plans to broaden its commercial real estate holdings in the Chugiak and Eagle River communities. A new project recently announced is a Three Bears Alaska store, planned for construction on a property at the North Birchwood exit, which will include in its fift y-thousand-square-foot building: a full line of groceries, household goods, sporting goods, outdoor equipment, a liquor store, pharmacy, and gas station. There’s no lack of momentum for the company. Some of the other projects ERES www.akbizmag.com

Going smokefree was the right decision for us, and business couldn’t be better. We’ve seen a huge increase in customers. — Jay Ramras Pike’s Landing, Fairbanks

Good for health. Great for business. Smokefree policies have been shown to not only improve the health and productivity of employees, but also decrease business costs for insurance, cleaning and maintenance. Research shows that smokefree laws are routinely positive or neutral in their economic impact.*

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Aerial of Eklutna’s Powder Ridge residential subdivision that is adjacent to the site of Phase 1 of Power Reserve, another development of homes. Photo courtesy of Eklutna, Inc.

is currently pursuing include Eklutna Plaza, which is a seventy-thousand-squarefoot mixed-use (office, medical, retail, and restaurants) development located at the intersection of the Old Glenn Highway and Northgate Road in Eagle River. Designs are currently being drawn by an architect, with groundbreaking targeted for spring 2014. Another new project is the Birchwood Industrial Park that is on a 160-acre site. Final grading should be completed by year’s end, with the last three years requiring gravel removal to create a flat parcel. This development is adjacent to the Alaska Railroad Satellite Yard and Birchwood Airport. ERES will start leasing

over the winter and into next spring. The industrial park is in a foreign trade zone (similar to the Ted Stevens International Airport and Port of Anchorage). McDonald says the foreign trade zone designation means there is a tremendous opportunity for companies to manufacture goods and then ship internationally, taking advantage of tax and tariff implications. The list goes on for this busy subsidiary with diverse and thriving properties scattered across the municipality. There is a five-acre light industrial commercial development on Artillery Road and Mausel in Eagle River. There is land for planned development adjacent the Matanuska Elec-

tric Association Eklutna Generation Station, east of the Village of Eklutna, recently approved by Municipality of Anchorage’s Planning and Zoning Commission to rezone for light and heavy industrial services. The company is also starting Phase 1 of Powder Reserve, which is a residential development that has already sold out.

From Fuel to Water, Keeping the Machine Moving NOSI—NANA Oilfield Services, Inc. NANA When it comes to Alaska Native corporation subsidiaries, age is relative. Some subsidiaries are fledgling and barely past their genesis, while others are decades old and still blossoming. On the senior end of the spectrum, in 1975 the NANA Regional Corporation subsidiary NANA Development Corporation subsidiary NANA Oilfield Services, Inc. (NOSI) was established. Offering a menu of support services to oil exploration and development companies on the North Slope, its primary capabilities are bulk fuels, potable water, Chevron lubricants, and long haul trucking. Led by its president, Brad Osborne, who has been with NANA for more than

Integrated Design-Build Solutions for 35 years ARCTIC EXPERTS | GENERAL CONTRACTING | INDUSTRIAL MECHANICAL | CONSTRUCTION MANAGEMENT

Alaska Business Monthly | December 2013

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fourteen years and has been president of NOSI for two years, the subsidiary has an 11.1 acre operations facility in Deadhorse along with a 1.2 million gallon tank farm and offers in-state full tanker load delivery. The operations facility was completed in 2010 and expanded in 2012. The 140-by80-foot facility houses six bays. NOSI’s niche is bulk fuels, marketing diesel, ultra-low-sulfur diesel, and unleaded gasoline. Its access is 24-hour/365-day-ayear availability. Critical to camps and exploration sites, the fact that the company delivers across the North Slope is of importance to clients. Aviation fuels, methanol, and remote fuel tank set up are additional customer incentives highlighted in its branding. NOSI just opened a new trucking division out of Fairbanks, which transports fuel from Fairbanks to Deadhorse. Those who have heard of ice road truckers and the popular reality show with the same name are acquainted with NOSI’s “bread and butter.” A typical workday for a NOSI trucker begins in Fairbanks driving a semi-truck and pulling a ten thousand gallon tanker to a refinery in North Pole. Once the ultra-lowsulfur diesel is loaded, it’s a twelve to fourteen hour journey on the Dalton Highway,

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Bob Johnson at GeoNorth works on a map. Photo courtesy of GeoNorth, LLC

depending on road conditions and Mother Nature, to the Deadhorse tank farm. As customers need the fuel, NOSI dispenses from its tank farm and via line haul trucks. NOSI previously relied on third-party contractors for some of its services but now handles all functions effectively in-house. Osborne adds that consolidation of services is an example of the substantial support NOSI, as a subsidiary, receives from its parent company NANA Development. Those in the Arctic who enjoy drinking and using water for daily living can attribute access to this basic necessity to NOSI and its water trucks. The company supplies

millions of gallons of water each year to the camps run by companies like Arctic Slope Energy, Afognak Leasing, and State of Alaska facilities around the Deadhorse vicinity.

Shooting for the Stars GeoNorth—Tatitlek All Alaska Native corporation subsidiaries don’t stay rooted to the ground. When it comes to Geographical Information Systems (think GoogleEarth) and web application integration, GeoNorth, LLC is eponymous in Alaska, and it’s looking to the sky for expansion. It was in 1994 when Brian Minster and two partners

December 2013 | Alaska Business Monthly

formed GeoNorth, a company providing GIS, database management, web design and development, and mobile applications. As a full-service software provider, for almost twenty years GeoNorth has witnessed and benefitted from the evolution of geomapping technology. In September 2010 The Tatitlek Corporation, a corporation for the Village of Tatitlek located in northeastern Prince Williams Sound and thirty miles south of Valdez, purchased the company. A year later, GeoNorth acquired Motznik Informaton Services. Motznik opened in 1974 and has been the signature political and marketing data information provider in the state ever since, recently expanding services into national background-checks and Alaska public records searches. GeoNorth has more than two hundred employees with more than 25 percent based in Alaska. Its headquarters is in Anchorage, with offices in Portland, Oregon; Orlando, Florida; Arlington, Virginia; and a new office opening in Fairbanks in 2014. In light of hundreds of GIS assessments already completed, and an abundance of GIS systems architecture development on its resume, GeoNorth is particularly proud of designing and implementing its own webbased mapping solution called MapOptix. To add to the success, on September 12 GeoNorth announced the launch of a new business line focusing on remote sensing services. Partnering with Astrium Services, GEO-Information Services and the Alaska Satellite Facility at the University of Alaska Fairbanks, GeoNorth will be establishing a Direct Receiving Station for optical and radar satellite imagery. GeoNorth will handle tasking and downlinking of optical and radar telemetry for Astrium satellite constellations including SPOT, Pleiades, and TerraSAR.

Bottom Line As integral as Alaska Native parent corporations are to the state’s economy, there’s no doubt that the hundreds of dynamic subsidiaries sprinkled throughout Alaska and nationally are making an equally positive impact in services, products, and modern technology offered to customers. From sea to land to sky, these remarkable subsidiaries are ensuring the state’s vibrant business climate continues and Alaskans are the benefactors.  Tom Anderson freelances from Alaska. 28

Alaska Business Monthly | December 2013

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CHECKS

Payment platforms evolve with technology By Tracy Barbour

anks and credit unions in Alaska offer an array of solutions that businesses can use to send payments to employees, suppliers, and other entities. Credit cards, ACH (commonly referred to as direct deposit), and wire transfers are some of the most commonly-used electronic options. Credit cards come in a variety of forms to facilitate different requirements for payment processing. For example, companies can use a traditional credit card to make purchases in person, as well as over the telephone. Another option is a nonplastic “ghost” card that vendors keep on file and simply punch in the card number whenever a purchase is made. However, some companies are uncomfortable with the potential liability of having their card number kept on file. That’s when a singleuse card number can be useful. “The customer still has to go through the invoice process, approving that invoice and having that payment approved to be paid,” says Jason Kim, a Wells Fargo treasury management consultant based in Anchorage. “Then Wells Fargo facilitates a payment to that vendor using a secured email.” As a built-in safety measure, the singleuse number can only go through for the exact amount the customer specifies, and the customer receives an email with all the pertinent details about the invoice that was paid. Businesses can use credit cards to capitalize on a wide range of benefits. A smaller company might take advantage of consumer-style credit card that offers rewards and allows the customer to carry a monthly balance. A corporate purchase card, on the other hand, can be a great tool for companies with multiple employeeusers, but it normally doesn’t come with a rewards program. However, it enables customers to enhance the way they pay their suppliers. They can use the card to purchase goods and services, except there’s no roll-over balance. At the end of the month, the cus30

tomer has a certain number of days to pay the balance due. Credit cards give corporate buyers leverage to make timely purchases and take advantage of lower costs. Alan Dablemont

ACH Options First National Some suppliers prefer Bank Alaska to avoid paying the extra fees associated with accepting credit cards, so they opt to use ACH. However, there are inherent risks associated with ACH. The vendor can get paid as a nextday settlement, but there is always the potential of a return. In addition to being used to pay vendors, ACH is often used for direct depositing payroll, tax payments, employee reimbursements, and employee child support payments. Over the years, ACH has evolved to include debits to utility companies, fitness centers, and any other vendor that requires regular payment. Many banks, including KeyBank, offer payroll cards. Companies can issue pre-loaded cards to employees as a payroll direct deposit option. They can access their earnings at any KeyBank branch and ATM, among other places. The payroll card is a growing option for employers, and it’s an ideal solution for companies with a significant number of temporary employees, such as workers in the fishing industry. For most employers, issuing payroll cards is cheaper than cutting checks. The ultimate goal for a company, Kim says, is to get all employees on direct deposit to avoid the time and expense of cutting checks. But that’s not always going to be the case. “If you’re at an 80 percent direct deposit rate, you’re successful,” Kim says. Wells Fargo also offers reloadable payroll cards that employees can use as a Visa or debit card. This allows companies to include all employees in their automated

Alaska Business Monthly | December 2013

Katie Bates Northrim Bank

Tammy Stewart KeyBank

payroll payment system. The employees are happy because they can avoid check cashing fees and even use their payroll card to shop online.

Faster Funds Businesses that need a faster alternative than ACH can use wire transfers. Though more costly than ACH, wiring funds can be done almost immediately to provide same-day payments. Northrim Bank offers several services for sending wire payments. Businesses can sign up and be approved for online wire services or a wire agreement that allows customers to fax or call in a wire. “It comes down to the business and what its needs are,” says Katie Bates, Northrim’s electronic channel delivery manager. Northrim also has a cash concentrations and disbursements (CCD) service that permits authorized individuals to transfer funds back and forth between other banks and their Northrim business account. For example, if businesses use banks in the Lower 48, they could make deposits to those institutions and pull the funds in and concentrate them in their Northrim account. “CCD debits their account there and credits their account here,” Bates says. “It helps customers manage their funds more effectively with the bank.” Northrim and other financial institutions also offer a business Visa check card that multiple employees can use to make payments on behalf of the business. Bill pay continues to be a viable option for smaller companies that want a convenient www.akbizmag.com

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and cost-effective way to pay vendors electronically. They can set up the service to schedule single or recurring payments according to due dates, which can help control cash flow.

Saving Resources Electronic payments can help businesses conserve a considerable amount of time and money. “It gives them more time to spend on their business,” Bates says. “They can put those resources to better use.” As another benefit, credit cards, ACH, and wire transfers allow companies to make payments with precise timing, according to Alan Dablemont, a vice president of deposit services at First National Bank Alaska. The predictability factor may allow them to take advantage of trade discounts, as well as avoid late fees. In addition, he says, corporate cards have a wide acceptance and provide an online expense management system that may allow the business to automate reconcilement by tying in with their general ledger system. Payment Trends in Alaska Financial experts are seeing a number of trends play out with the use of payment

platforms in Alaska. While check volumes have diminished over the years, ACH and corporate cards are still very viable products and continue to grow as more companies pay electronically. Wire transfer volumes are also still strong, but there are less expensive alternatives, such as ACH. “We continue to see growth in the use of ACH for direct deposit of payroll, vendor payments, and taxes as more businesses in Alaska take advantage of the convenience, security, and cost savings of these services,” Dablemont says. Corporate ACH payments, Dablemont says, offer buyers the flexibility to pay how they need and when they want—without the associated risks of checks. The ability to send and receive supplemental information electronically via the ACH network is a huge benefit for large businesses in terms of paperwork reduction and freeing up staff time for things more important to the actual operation of the business. In addition, corporate credit cards provide a significant benefit to large businesses, allowing them to make payments using a revolving line that’s paid off every thirty days with no interest. “Corporate cards allow the business to control expenditures by cardholder with

dollar limits, cash limits, and by merchant type. Additionally, substantial transaction volumes may provide an opportunity for revenue sharing with the bank,” Dablemont says. The economy may also be a factor in businesses trending toward electronic payment platforms. Evolutions in computer technology make it easier to handle ACH and wire transfers online and with smartphones and tablets instead of having to call an eight hundred number or walk into a branch, according to Wells Fargo Alaska Treasury Management consultant Jennifer Snodgrass. That represents a major benefit to businesses, especially those in rural Alaska villages with limited access to financial services. “We’re seeing more of our businesses going toward electronic payment methods,” she says. Tammy Stewart, a KeyBank senior cash management advisor in Anchorage, is seeing the same trend unfold. However, she says, while companies may be writing fewer paper checks to vendors and employees, checks are not going away any time soon. Since Alaska is a small network of businesses, companies are focused on making payments based on supplier pref-

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Alaska Business Monthly | December 2013

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erences. Consequently, Alaska businesses continue to use a combination of check, ACH, and wire payments. Establishing an electronic payment system isn’t always the top priority. “Although they recognize that there are efficiencies to be gained from automation, finding the time and resources to start the process is often the biggest challenge,” Stewart says. Stewart has also noticed that Alaska businesses are using a bigger variety of card solutions. Historically, card use has been limited to travel and expense, she says. Now more businesses are paying attention to newer offerings like purchase and prepaid cards.

Finding the Right Option With all the payment options available, how can a business decide which one to use? The answer: It depends on their needs. Often businesses prefer to incorporate multiple methods to meet their accounts payable needs. That’s the approach AHTNA Netiye Inc. has adopted. The company uses KeyBank’s ACH payment processing service to direct deposit payroll for hundreds of employees. “It’s more productive and less costly,” says Corporate Controller Jun Labio. AHTNA Netiye also uses wire transfers to settle up with new vendors who require immediate payment. “New vendors want to establish a relationship first [before extending credit],” Labio says. Wells Fargo works closely with customers to create a strategy on how to pay vendors. Representatives of the bank conduct a detailed business process review that includes spending up to a day at the business to see exactly how staff process payments. It’s like a bring-your-banker-to-work day. “We create a work flow, and we show them each step,” Snodgrass explains. “It gives them the benefit of seeing what they’re doing. We can shine a light on where they can be more effective.” The bank’s consultative role often includes using the customer’s financials to show a working capital benefit of using a particular payment platform such as a commercial card, which essentially offers access to an unsecured line of credit. Northrim Bank meets face-to-face with customers to conduct a needs assessment. The goal, Bates says, is not to approach the meeting with preconceptions about the company’s needs. “We really try to go in with an open mind and determine what really fits them best,” she says. www.akbizmag.com

Sometimes customers may be using the right suite of products, but simply need to optimize their processes to ensure they’re using them as effectively as possible.

Security a Key Issue Security is an important issue with all payment platforms. Each option has unique risks, with electronic payments generally being safer than checks. Dablemont says First National maintains a full staff of cash management professionals to assist Alaska businesses in reviewing their processes to help them take advantage of electronic payment services, as

well as to discuss their internal security controls. The bank also provides periodic seminars—sometimes featuring FBI representatives—to help make customers more aware of ways they can protect themselves from fraud, both with check acceptance and in the establishment and maintenance of online services. “We believe the educational component that comes with providing these services is critical,” Dablemont says.  Former Alaskan Tracy Barbour writes from Tennessee.

FOR

growth rEgIoNAL ANC CORPORATIONS

THE CALISTA CORPORATION FAMILY OF COMPANIES

Yulista Management Services, Inc. • Y-Tech Services, Inc. • Yulista Aviation, Inc. Brice Companies • Tunista Services, LLC • Tunista, Inc. • Tunista Construction, LLC Yukon Equipment, Inc. • Brice Environmental • E3 Environmental • Futaris Sequestered Solutions • Chiulista Services, Inc. • Solstice Advertising Calista Real Estate • Calista Heritage Foundation Statistics from Alaska Business Monthly October 2012

December 2013 | Alaska Business Monthly

special section

Top Stories of 2013

Top Business News of 2013 Compiled by Mari Gallion

n December 21, 2012, imagine that rather than the much-anticipated floods and quakes, the date had instead yielded a group of prophetic aliens from a faraway galaxy to colonize Alaska. “Of all the places on Earth,” you might ask, “why have you chosen Alaska?” “Our answer is simple,” they respond. “Alaska is the site of great change and innovation. As your state government is soon to demonstrate, Alaska has your country’s best site for launching our spaceships and communication satellites. Secondly, the innovative people in the Alaska transportation industry will find a way to make the best of the Federal government’s two-way radio communication mandate, which will allow us to legally operate our own earth-compatible two-way radios without overcrowding the band. You will break through all the red tape and finally make some headway in getting your LNG to the world market and to those Alaskans who need it most. And finally—probably most importantly—we are hoping to replace Northern Dynasty’s upcoming vacancy from the Pebble Project and use our advanced technology to prove to the EPA and the people of Alaska that we can access the site’s rich gold and copper deposits without harming your salmon.” Would you have believed that our business world would change so much in one year? After all, it seems far less of a stretch to believe in prophetic aliens than to anticipate what would become some of the year’s biggest Alaska business news. As unbelievable as a lot of it may have been one year ago—the innovations, the acquisitions, and the dramatic exits—the unbelievable future has arrived. Welcome to December of 2013.

FCC Narrowbanding Mandate The Federal Communications Commission (FCC) issued a rule that all VHF radios be narrow banded by January 1, 2013. 34

“This [narrowbanding solution] is an excellent example of private and public sector problem solving.” —Aves Thompson ATA Executive Director

This was an effort to provide more communication bands as the existing wide band frequencies were getting very crowded. This rule essentially doubled the number of frequencies available for transmitting and receiving voice communications. The trucking industry in Alaska responded to this rule by beginning to narrow band all their radios and during that process realized that many of the radios in use also had cross frequency or pirate frequency problems. A VHF radio can only be used on a frequency or frequencies authorized by license from the FCC or by a written agreement with an FCC license holder for that frequency or frequencies. Since there are many trucking companies that operate in Alaska that are properly licensed to operate their own company frequencies, the prospect of entering into individual written agreements between all these companies seemed to be an insurmountable task. Looking for a better way, the Alaska Trucking Association (ATA) and its member companies began to talk with ProComm, one of the largest radio communication companies in Alaska, to figure out how the industry might best deal with this issue. The ATA decided to apply for a license to operate up to twelve channels. Recently, FCC approved the license application, and, with that license in hand, ATA announced its plan to operate an ATA Alert channel, an ATA Hail channel, and ten ATA Chat or Talk channels on the business band portion of the VHF frequency range. This plan provides ATA member companies, as well as other truck operators willing to participate in this plan, with a channel to communicate an emergency or other road

Alaska Business Monthly | December 2013

hazard and a channel to “hail” another driver and direct the other driver to one of the ten ATA Chat channels. ATA consulted with the Alaska State Troopers and State of Alaska Transportation and Public Facilities, Administration, and Public Safety departments as well as with the Transportation Communications Coordinator at the American Association of State Highway Transportation Officials. Each of these agencies was helpful in advising ATA and helping with license applications and other operational advice. As a result of this early coordination, the State of Alaska agreed to be a co-licensee on the ATA Alert Channel enabling emergency and hazard communication with the Alaska State Troopers, Alaska DOT&PF/Commercial Vehicle Enforcement Unit, and other agencies that can assist in an emergency or have need to know of a hazard on the highway. Plan participant drivers can also report hazard notifications to other drivers along the way. ATA Executive Director Aves Thompson said, “This is an excellent example of private and public sector problem solving. We had an idea and State and Federal agencies assisted to help us make it happen. For that we are grateful. We believe this plan will provide a legal way for truck drivers to fill a communication gap that will help to achieve one of ATA’s top goals of promoting highway and driver safety.”

Alaska Aerospace Corporation Kodiak Launch Complex In February, Lieutenant Governor Mead Treadwell told a US Chamber of Commerce/Space Foundation forum that an www.akbizmag.com

“I really feel this is a match made in heaven. Saltchuk is family owned, as we are, and we share like values.” —Harry McDonald CEO and co-founder, Carlile

America that recognizes the value of Alaska’s location would take greater advantage of the Alaska Aerospace Corporation Kodiak Launch Complex. “If the US understands the value of what it bought in 1867, it will use the Kodiak Launch Complex more. Polar launches from Alaska cover the earth for remote sensing and telecommunications or GPS,” Treadwell said at the event. “The Alaska Aerospace Corporation operates one of the premier launch facilities in the nation, with sixteen successful launches to date. Our university system has been involved in aerospace research and development since the 1920s, and our aviation safety records are improving with the use of technology tested in our own skies,” Treadwell said. In April, Treadwell continued to sell Alaska aerospace at the national space symposium, in conjunction with the annual business meeting of the Aerospace

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States Association, which he chairs. At this event, the lieutenant governor invited the aerospace community to consider Alaska, and particularly the Kodiak Launch Complex, as a strategic resource for the nation. By August, the industry was listening. On August 29, Governor Sean Parnell announced the signing of a Memorandum of Understanding with Virginia Governor Bob McDonnell establishing a formal operating relationship between the Alaska Aerospace Corporation and the Virginia Commercial Spaceflight Authority. “With this agreement, we will be creating opportunities for the commercial space industry to secure cost-effective and reliable launch operations from both the east and west coasts,” Parnell said. “Both Alaska and Virginia will benefit with greater investment and job opportunities as leaders in the burgeoning commercial space industry.” The Memorandum of Understanding defines the intent of the State of Alaska

and the Commonwealth of Virginia to initiate a collaborative and cooperative partnership for spaceport operations. “The Commonwealth’s partnership with Alaska will further this new era of commercial aerospace activity throughout the Commonwealth,” McDonnell said. “As the US space program increases its reliance on the commercial sector, these types of partnerships will not only help keep America competitive in the space industry, but will help create much-needed jobs and economic development.”

Saltchuk Buys Carlile In May, Carlile Transportation Systems, one of the largest trucking and logistics companies in Alaska, was acquired by Saltchuk Resources, a Seattle-based holding company with diversified transportation and petroleum distribution companies. “Our relationship with Saltchuk is twenty years long, already having been friends, vendors, and customers,” said Carlile CEO and co-founder Harry McDonald. “I really feel this is a match made in heaven. Saltchuk is family owned, as we are, and we share like values. Carlile’s management and employees are excited about the

December 2013 | Alaska Business Monthly

new opportunities and benefits we will be able to offer our customers.” Carlile will remain a standalone company headquartered in Anchorage. “As with all of the Saltchuk companies, we will reinvest in Carlile’s assets, pursue growth opportunities, and build on the very strong foundation the McDonald family has built for the future,” said Mark Tabbutt of Saltchuk. Carlile’s 700 employees will join Saltchuk’s national team of 5,500 persons. “Carlile’s strong safety culture was one of the driving factors in our interest,” said Tim Engle of Saltchuk. “There is a lot of similarity between Carlile and our other operations—we have people often exposed to harsh environments and working around and relying on heavy machinery. Getting everyone home safe to their families is our number one priority,” Engle said. Through its family of companies, Saltchuk has invested significantly in Alaska over the last thirty years. Other Saltchuk Alaska companies include Totem Ocean Trailer Express, Delta Western, Northern Air Cargo, Inlet Petroleum, and Cook Inlet Tug & Barge.

“The addition of Carlile to the TOTE, Inc. transportation and logistics network further enhances the already broad service offerings we have available to our respected client relationships. We are honored to have Carlile become an integral member of our team” stated Anthony Chiarello, president and CEO of TOTE, Inc. Carlile will become a part of Tote Logistics, significantly increasing Saltchuk’s presence in cargo consolidation, warehousing, trucking, and other logistics in North America.

Calista Buys STG In September, Calista Corporation announced the acquisition of STG Incorporated. In the last twenty years STG has earned a solid reputation while operating throughout Alaska, from hot and sunny summer days to frigid winter nights. STG has installed approximately 80 percent of the utility-scale wind projects currently in operation across the state, including crane support for the Fire Island Wind project near Anchorage and in rural communities throughout Alaska. They also completed the thirty-four-site tower

Alaska Business Monthly | December 2013

and control buildings for the massive DeltaNet Project for United Utilities, Inc. in Southwest Alaska. STG is also the premier pile foundations contractor for Western and Interior Alaska. Additionally, the team at STG provides deep experience with diesel power generation projects, bulk fuel systems, and other renewable energy projects. “STG stands out in Alaska as a proven company with dedicated employees, led by Jim and Sandy St. George,” said Calista Corporation president and CEO Andrew Guy. “Calista continues to strengthen and grow with complementary acquisitions. That is one of our key obligations to our shareholders.” “When we first founded the company in Kotzebue, known then as St. George Construction, our focus was operating as true Alaskans—with honesty, hard work, and solutions to any challenge,” said STG President Jim St. George. “Our team is excited to join Calista’s operations. We are tasked with continuing our strong Alaska Native hire rates while positively contributing to Calista’s revenues.” The acquisition also includes Alaska Crane, Ltd., Terra Foundations, Inc., and

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Gambell Properties, LLC. Alaska Crane provides crane equipment and operators for nearly any sized project. Their equipment includes the largest crane in Alaska, currently working on the Blue Lake Hydroelectric project in Sitka.

Anglo American Pulls Out of Pebble In September, Northern Dynasty Minerals Ltd. reported that Anglo American Pebble LLC, a wholly owned US subsidiary of Anglo American plc, gave notice under the Pebble Limited Partnership agreement that it withdrew from the Pebble copper project in Alaska. Mark Cutifani, Anglo American CEO, said, “Despite our belief that Pebble is a deposit of rare magnitude and quality, we have taken the decision to withdraw following a thorough assessment of Anglo American’s extensive pipeline of long-dated project options. Our focus has been to prioritize capital to projects with the highest value and lowest risks within our portfolio, and reduce the capital required to sustain such projects during the pre-approval phases of development as part of a more effective, value-driven capital allocation model.”

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Low transportation costs are key to getting minerals to market. As of June 30 this year, Anglo American had funded more than half a billion dollars on the Pebble project. Northern Dynasty CEO Ron Thiessen commented, “Northern Dynasty will again own 100 percent of one of the world’s most important copper and gold resources and will have the benefit of $541 million worth of expenditures, which opens the door to a number of exciting possibilities for Northern Dynasty and its shareholders and the Pebble project and its stakeholders. Northern Dynasty and the Pebble partnership have both the expertise and resources necessary to advance the Pebble project.”

Port MacKenzie Rail Project Prevails In October, the US 9th Circuit Court of Appeals denied a request to stop construction on the Port MacKenzie Rail Extension after the US Army Corps of Engineers permit that allows work in the wetlands was challenged in federal court for a third time.

Contracts were awarded to three construction companies and work is begun on $88 million in construction projects for three segments of the Port MacKenzie Rail Extension. Bristol Construction will continue its work on Segment 1, the first five miles of the rail embankment. Granite Construction was awarded the contract for Segment 6 near Houston. Segment 6 is 1.8 miles long. It will create a new “Y” rail connection on the north-eastern end of the project as well as a new siding adjacent to the Alaska Railroad mainline to Fairbanks. The “Y” will enable freight service between Port MacKenzie and Fairbanks to the north and Anchorage/Kenai areas to the south. Quality Asphalt Paving was awarded the contract for Segment 3. The segment is 6.5 miles long and will run from Ayrshire Road to Papoose Twins Road near Susitna Parkway. Segment 4, approximately 7.4 miles from Papoose Twins Road to north of Horseshoe Lake, was awarded in late sum-

December 2013 | Alaska Business Monthly

mer. State general obligation bonds are funding the project. The 32-mile rail project will connect the mainline of the Alaska Railroad near Houston to the deep draft dock at Port MacKenzie. The Borough has secured $116 million in State legislative appropriations, and state voters have approved $30 million for a General Obligation bond for the project in November 2012. The project is expected to be completed by 2016. Low transportation costs are key to getting minerals to market. When the rail is in place, Port Mackenzie will be 141 miles closer to the natural resources of the Interior than any other Alaska deepwater port.

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BBNC Buys Peak Oilfield Services, Inc. In October, Bristol Bay Native Corporation (BBNC) announced that it signed a definitive agreement with Nabors Alaska Services Corporation, a subsidiary of Nabors Industries Ltd., to acquire a 100 percent ownership interest in its subsidiary, Peak Oilfield Service Company, LLC. The acquisition is subject to customary closing conditions. Peak is a leading Alaska energy support services company, with a unique and diverse set of capabilities that allow it to support the needs of its customers located primarily on the North Slope, Cook Inlet, Valdez, and North Dakota. BBNC is a diversified Alaska Native Corporation, with subsidiaries currently operating in the oilfield and industrial services, construction, government services, petroleum distribution, and tourism industries. A statement of Jason Metrokin, president and CEO of BBNC, said, “BBNC is pleased to announce the acquisition of Peak Oilfield Service Company. Peak is a longstanding and respected business employing hardworking Alaskans. It is an industry leader in safety and environmental performance. Peak’s commitment to providing the highest quality professional services fits well with BBNC’s longterm strategic objectives. Peak’s business model enhances BBNC’s ability to accomplish our core mission of enriching our shareholders’ Native way of life. We look forward to the opportunities this acquisition will bring to our corporation and shareholders.” Wells Fargo Securities, LLC acted as financial advisor to BBNC, and Davis Wright Tremaine acted as legal counsel. www.akbizmag.com

Nikiski Chosen for LNG Plant and Terminal In October, ExxonMobil, BP, ConocoPhillips, and TransCanada selected a site in the Nikiski area on the Kenai Peninsula as the lead site for the proposed Alaska LNG project’s natural gas liquefaction plant and terminal. More than twenty locations were evaluated based on conditions related to the environment, socioeconomics, cost, and other project and technical issues. “This is a step forward for the Alaska LNG project and shows continued progress toward building Alaska’s energy future,” said Steve Butt, ExxonMobil senior project manager. “The work that we have put into the site selection process gives us confidence that the Nikiski site is the lead location for the LNG plant and terminal. The Nikiski site also results in a pipeline route that provides an access opportunity to North Slope natural gas by the major population centers in Fairbanks, Mat-Su Valley, Anchorage and the Kenai Peninsula.” A number of engineering, technical, regulatory, fiscal, commercial, and permitting issues still need to be resolved as work progresses on the project with a potential $65 billion price tag. While Nikiski is the lead site, the project team continues to consider other secondary locations. Pipeline routing definition work also continues based on the project summer field work activities, which will be extended south of Livengood. The companies are continuing to refine the agreed project concept that includes a gas treatment plant located on the North Slope, an eight hundred-mile, forty-twoinch pipeline with up to eight compression stations and at least five off-take points for in-state gas delivery, and a liquefaction plant and terminal. The teams are currently preparing for more detailed engineering and design work, consistent with previously released plan phases. A competitive, predictable, and durable oil and gas fiscal environment will be required for a project of this unprecedented scale, complexity, and cost to compete in global energy markets. The companies remain committed to working with the state to responsibly develop North Slope resources. A successful project could provide a host of economic benefits to Alaskans including state revenues, new job opportunities, and access to decades of domestically-produced natural gas for homes and businesses.  www.akbizmag.com

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©Ken Graham Photography.com/Courtesy of Davis Constructors & Engineers, Inc.

AGC 2013 CONS T RUC T ION AWA R DS

Buildings over $15 million—Davis Constructors & Engineers, Inc., Anchorage, JBER Housing Privatization Phase III Design/Build

Associated General Contractors Name 2013 Award Winners Top construction projects and safety recognized

■ The Hard Hat Award, given annually to an AGC member who has demonstrated exemplary service to the Association, the community, and the industry, was awarded to Traci Johnson, assistant general manager of Spenard Builders Supply in Anchorage.

■ Buildings over $15 million: Davis Constructors & Engineers, Inc., Anchorage, JBER Housing Privatization Phase III Design/Build ■ Transportation, Marine, Heavy, Earthmoving over $15 million: QAP, Anchorage, Seward Highway Reconstruction In the Parker, Smith & Feek-sponsored Ex- ■ Transportation, Marine, Heavy, Earthmoving cellence in Construction Awards the followbetween $5 million and $15 million: Brice, ing firms won: Inc., Fairbanks, Eva Creek Wind Farm ■ Buildings between $5 million and $15 ■ Transportation, Marine, Heavy, Earthmoving million: Davis Constructors & Engineers, under $5 million: Secon Construction, The Hard Hat Award—Traci Johnson, asInc., Anchorage, Providence Generations Juneau, Petersburg Road Improvements sistant general manager of Spenard BuildSurgery Center ■ Specialty Contractor Transportation, ers Supply in Anchorage 40

Alaska Business Monthly | December 2013

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Photo courtesy of AGC of Alaska

he Associated General Contractors of Alaska (AGC), the state’s largest construction organization, named its top construction projects and safety awards winners and recognized individuals at the association’s annual conference in Anchorage, November 13-16.

AGC 2013 CONS T RUC T ION AWA R DS

Kodiak Direct Pacific Alaska Freightways has

acquired Southern Alaska Freightways, Inc., bringing fast, dependable and seamless transit to and from Kodiak.

©Ken Graham Photography.com/Courtesy of Davis Constructors & Engineers, Inc.

Buildings between $5 million and $15 million—Davis Constructors & Engineers, Inc., Anchorage, Providence Generations Surgery Center

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December 2013 | Alaska Business Monthly

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Photo courtesy of Brice, Inc.

Transportation, Marine, Heavy, Earthmoving between $5 million and $15 million— Brice, Inc., Fairbanks, Eva Creek Wind Farm

Photo courtesy of Secon Construction

Above: Transportation, Marine, Heavy, Earthmoving under $5 million—Secon Construction, Juneau, Petersburg Road Improvements Right: Specialty Contractor Transportation, Marine, Heavy, Earthmoving with contractor as prime contractor—Northern Powerline Constructors, Inc., Anchorage, Fire Island Transmission Line

Marine, Heavy, Earthmoving with contractor as prime contractor: Northern Powerline Constructors, Inc., Anchorage, Fire Island Transmission Line ■ Specialty Contractor Vertical Construction with specialty contractor as sub-contractor: Superior Plumbing and Heating, Anchorage, Providence Alaska Cottages ■ Sustainability in Construction Award: GHEMM Company, Inc., Fairbanks, Tanana Chiefs Conference, Chief Andrew Isaac Health Care Center www.akbizmag.com

Photo courtesy of Northern Powerline Constructors, Inc.

December 2013 | Alaska Business Monthly

AGC 2013 CONS T RUC T ION AWA R DS

Sustainability in Construction Award— GHEMM Company, Inc., Fairbanks, Tanana Chiefs Conference, Chief Andrew Isaac Health Care Center

500

2010

Top 2011 Remodelers 2012

In the Marsh and McLennan Insurancesponsored Excellence in Safety Awards the following won top honors: ■ Small Contractor: American Marine Corporation ■ Medium Contractor: Kiewit Infrastructure West Co. ■ Large Contractor: Granite Construction Company ■ Associate: Davis Block Company, Inc. ■ Individual: Steve Rowe, Cornerstone General Contractors, Inc. AGC also announced the following other winners: ■ Stan Smith Volunteer of the Year: Molly Marler, American Fast Freight, Anchorage ■ Supplier of the Year: Richard Green, Spenard Builders Supply, Fairbanks ■ Associate of the Year: Northrim Bank The Associated General Contractors of Alaska is a 650 member statewide association for companies in the construction/ contracting business including building, highways/utilities, heavy industrial, and specialty areas. Construction is the third largest industry in Alaska, contributing more than $8.3 billion to the Alaska economy and paying the second highest wages with more than twenty-one thousand in the workforce. AGC is headquartered in Anchorage with an office in Fairbanks. 

Alaska Business Monthly | December 2013

www.akbizmag.com

HR Matters

By Kevin M. Dee

Developing people that impact your bottom line (in a good way)

ost organizations realize that their employees are the biggest factor in delivering a robust bottom line. You need people out on the front lines interacting with customers in a positive way that builds loyalty or delivers a great product or service. Without those folks, you might as well give up and take up knitting full time. You can’t build a prosperous business without a motivated and prepared team delivering the right results in a timely way. Many organizations think they are on that path. They invest in employee development by sending employees off to some workshops or classes that someone saw in a mailer or heard about from someone else. These workshops or seminars usually last one or two days and are given by some speaker of known—or unknown—repute. The employees return to work afterwards and the workshop may or may not get discussed at the next staff meeting. If you’re a lucky employee, you may even go to a convention in some nice place if you’re chosen by the powers that be. But that’s usually the extent of the process, until the same thing happens next year. Frankly, most of the time it’s a waste of company money! There is a better way to invest in people and at the same time measure the bottom line impact. High performing organizations know this and that is why they stay high performing over the long run. There are three steps to making this happen in any company and the recipe is simple—though not always the easiest to achieve. STEP ONE is alignment and commitment to a set of strategic goals and outcomes where everyone knows their roles and responsibilities in achieving the plan. From the janitor on up, everyone knows the big picture goal and their individual role in achieving their part of it. When these goals and outcomes are developed in a manner inclusive of input from employees, alignment and commitment occurs naturally.

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more easily implemented. Success Factors comes in a close second and both have dashboards that allow all managers to see live status of progress on individual and company goals at any level.

Kevin M. Dee

STEP TWO is a disciplined performance management culture where hard data on progress towards company goals is communicated and apparent at every level. This type of rigorous performance management is one of the biggest opportunities for human resources and accounting. Together they can work as the gas gauge and speedometer of the company, measuring the trajectory toward plans and goals. Too often departments and employees only receive bad news when the journey is off course—or receive data so late or infrequently so as to render it useless (think annual performance reviews). You wouldn’t drive a car five hundred miles and only look at the speedometer and gas gauge once during the trip, yet many organizations act like this. I hear the excuses, “we’re just too busy,” or “we’ve never communicated that,” or “they wouldn’t understand.” Fortunately, there are software performance management tools that help greatly in measuring performance and aligning it to the strategic goals of your company. Halogen software is my favorite, as it is scalable to any organization and is

STEP THREE can only be achieved after steps one and two are underway. During step two, an organization that is measuring and communicating performance to teams and individuals will begin to see gaps and needs within the company that can increase efficiency and performance. Every team can then look at its individual strengths and needs. Conversations that identify personal development needs start to occur on all levels and development plans that will impact team performance happen. As a result, Individual development plans (IDP) can be formed. Good IDPs have specific goals that are always tied to a clear and concise benefit to the company. They outline competencies and skills needed for an individual to grow and advance and how that will benefit both the company and the person. The best IDPs include hard skills such as “software skills” and soft skills such as “communication and leadership development.” Best practice ties achievement of personal IDP goals directly to compensation. Oftentimes mentors and coaching are involved to support achievement of the IDP. Investing in these steps and in the ongoing development of employees results in a culture of disciplined thought, disciplined people, and disciplined action. In the end, that’s what will have the greatest impact on your bottom line.  Kevin M. Dee has a master’s degree from Vanderbilt University and is the president of KMD Services & Consulting. He has more than twenty-eight years of experience providing leadership development, organizational development, and human resources services in Alaska and internationally. Contact him at mail@kmdconsulting.biz.

December 2013 | Alaska Business Monthly

OIL & GAS

Maintaining the Chilled Way Tending to ice road infrastructure protects capital investments and the tundra By Judy Griffin

Above: Looking through the windshield of a Cruz Construction winch tractor, a grader leads the set, creating wind rows for more efﬁcient snow blowing and is followed by a snow blower. Right: A Cruz Construction engineer watches as a mechanic uses a hand auger to test for frost depths. A thermistor that monitors temperatures below grade will be set in the auger hole. Photos courtesy of Cruz Construction, Inc.

Alaska Business Monthly | December 2013

n ice road infrastructure, there is no low-maintenance option. But be assured there is rest for the weary maintenance operator. Accommodations can be found far from drilling pads and camps; they are a safety necessity for long hauls. Crews of Cruz Construction, Inc. who ply ice roads to haul loads or operate maintenance equipment can find a bed in the selfheated sleeper units added to vehicles and in stationary shelters placed at intervals. “Having a sleeper is critical for front-line construction,” says Craig Thompson, general manager of oil field operations for Cruz Construction and a logistics specialist. “We’ve used them for equipment failures and during Phase II or Phase III blows.” He explains that Phase II conditions are identified by the ability to see ahead to only one road delineator, and when a whiteout with near-zero visibility occurs, Phase III prevails. From Milepost 359 on the Dalton Highway, Cruz Construction built a road to haul www.akbizmag.com

drilling equipment for an independent exploration company to Umiat near the Colville River in the foothills of the Brooks Range. The road was used from November 1, 2012, to May 10, 2013. “On that 101-mile snow trail, crews performed 375 transits with loads for a total of 37,000 miles in one drill season,” says Thompson. Shelters were spaced about 25 miles apart to permit operators who might work on a transit for as long as twenty-one hours to rest, in addition to being available for emergency conditions. Remote sites such as Umiat, for which the access road is extremely long, are often served by a type of ice road called a snow trail. Constructed by compacting snow without the substantial addition of water from lakes required to form the more load-worthy ice roads, these routes offer less cushioning of the tundra from traffic. Wheeled vehicles can travel on ice roads, but only low-ground-pressure vehicles designed to reduce the contact pressure, such as those with tracks or large flotation tires, can travel on snow trails. At the end of every snow trail or ice road, an ice pad with a frozen surface at least six inches deep must be established to accommodate the displaced weight of parked vehicles and load handling. “If exploration is in a highly remote area for which the distance from the maintained road is long, it’s more economical to use a snow trail,” says Thompson. One reason costs are lower for a snow trail is that permitting for use of lake water to haul for road-building is greatly reduced. “During planning, we’re able to minimize travel over areas with water,” he notes. The ravines crossed tend to be deep and narrow. For those locations and lower-lying areas, snow is harvested from areas with greater snow depths, a practice called snow farming. An ice cap is poured to float on the snow bed, and water is added during maintenance of the road surface, which is the practice for ice roads, too. The biggest constraint of a snow trail is that integrated drilling rigs, which may weigh more than 2 million pounds, cannot be moved over a snow trail, Thompson explains. A rig has to be broken down into multiple loads to travel on a snow trail. The loads do break the road surface, which will self-heal if undisturbed. According to Thompson, maintenance is a continuous process. No fewer than two vehicles travel on snow trails as a safety prewww.akbizmag.com

A Cruz Construction Water Buffalo truck spreads water for maintenance of the ice road surface, and more distant, a grader surfaces the road. Photo courtesy of Cruz Construction, Inc.

December 2013 | Alaska Business Monthly

Experienced for High Activity Peak Oilfield Service Company, for which an agreement has been signed for acquisition by Bristol Bay Native Corporation from Nabors Industries, LTD, has been developing ice roads since the 1980s. Project Manager Eric Wieman says his firm has several projects for the major oil companies this year. “Activity on the North Slope will be pretty high,” he adds. Wieman explains that ice road infrastructure on the North Slope serves three main purposes. One reason is resupply of an existing facility not connected by an allseason gravel road. The Alpine field, for example, receives drilling supplies and building materials needed for general operations by an approximately twenty-four-mile ice road from the Kuparuk oil field each year. Another ice road use is to support construction activities such as installation of piling or building pipelines. The third purpose identified by Wieman is specifically for exploration activities. “A road can be extended off an existing pad ten to twenty miles or farther to reach a particular area,” he says. From that location, a Rolligon or ATV allows crews to mobilize to remote areas in support of drilling operations. Several variables affect the time required to plan an ice road. For work in a new season in areas with known lakes and for which a company has current Alaska Department of Natural Resources (DNR) temporary water use permits and Alaska Department of Fish and Game fish habitat permits, the data collection and permitting steps can be completed within in a few months. “For a full-blown exploration project in a new area, without existing lake information, the planning process starts in spring to complete lake studies, fly routes, look at topography, and get lake studies done,” he says. Depending on the scale of the project 48

Photo courtesy of Peak Oilfield Service Company

caution to avoid stranding crews in case of equipment failure. The last vehicle, the trail set, pulls a drag that is a groomer or compactor. To allow the surface to harden, subsequent sets are delayed a minimum of four to six hours. Cruz Construction of Anchorage, which has built ice roads for more than thirty years, is currently serving independent exploration companies, according to Thompson. He estimates that about 35 percent of the company’s eight hundred units of equipment are used for ice road and snow trail services.

A Peak articulated water truck is ﬁlled from a pump house at a North Slope lake during ice road construction.

and knowledge about the area, planning may occur for years before ice road construction starts. According to Melissa Head of DNR, manager for the Northern Oil and Gas Team in the Division of Mining, Land and Water, North Slope monitoring stations measure ground temperatures to identify when it is frozen to minus twenty-three degrees Fahrenheit at the twelve-inch depth. In addition to the frozen ground depth requirement, snow cover must be six inches deep in coastal areas and nine inches deep in the foothills before the region is pronounced open for ice road use. Companies can prepack snow before the opening, Head explains. “So if the snow is four inches deep and reasonably good packing snow, they can take lowimpact vehicles and pack the snow down. Packing between tussocks and microtopographic features decreases the insulation factor of the snow. That allows the ground to freeze faster.” Peak and other ice road constructors also use ice chips from lake surfaces to add density during ice road construction. Throughout life of a constructed ice road, maintenance is continuous. Graders and snow blowers are used to clear drifting snow. “When there is no blowing snow and the ice road is clear, water is continuously put on the road,” Wieman says. The water cap has several benefits. By increasing the thickness of road over the course of the winter, the added ice depth

Alaska Business Monthly | December 2013

helps the road last longer in spring. The water also fills in cracks in the road that result from shrinking and cracking of the ice. “Otherwise, with really cold temperatures and high volumes of traffic, the road could be damaged. The maintenance keeps the road intact, and the smooth surface allows most of the snow to blow across,” Wieman notes.

Improving Smoothness Thompson of Cruz Construction explains that blading after adding water and removing snow improves the smoothness of the road and eliminates the pocks created by uneven freezing. Not only do the resulting ice properties contribute to the longevity of the road, but the smoother surface reduces vibrations that damage springs and cause other excessive equipment wear. Most important, however, is the ability to provide a protective layer that avoids tundra damage. “In terms of route planning, you want the ice road to be near water sources, but you want to stay away from areas that have tussocks or are really rough,” Wieman remarks. As part of permitting compliance, ice road operators are required to report tundra disturbances to DNR within seventytwo hours. “If tussocks are not protected adequately, they can break off, be crushed, or be scalped,” says Head. She explains that a tussock takes hundreds of years to form. DNR records the GPS locations of affected areas and uses that information www.akbizmag.com

Space Ship. Photo courtesy of Peak Oilfield Service Company

A Peak vehicle creates ice chips for use in ice road construction.

to help ensure subsequent routes are offset to avoid the damaged area. The seasonal failure of an ice road, when the surface begins to deteriorate, shifts loads to more costly aircraft or helicopter transit at some locations. The calendar and weather conditions must be closely observed. “Generally speaking, the end of the ice road season has been fairly consistent over the course of the years,” says Wieman. “Between April 15 and May 1 is about when roads closed. That really hasn’t changed over any number of years.” He notes that it’s possible to increase length of the season on the front end with the practices of prepacking snow and adding water. Those activities can allow earlier use of an ice road by as much as a couple of weeks. “The length of time that an ice road is usable depends on when we can get started, how much ice needs to be built, and how long it takes to construct the road,” Wieman says. Head calls ice road construction on the North Slope during the 2012-2013 season “pretty typical.” She reports that about 200 miles of ice roads and 180 to 200 miles of snow trails were provided and expects similar activity in the 2013-2014 season. Thompson believes the near-term prospect for ice road activities is promising, assuming a stable taxation climate. He points to opportunities anticipated because of the opening of the National Petroleum Reserve-Alaska. As the oil companies expand and go west, they’ll be moving deeper into undeveloped areas. Says Thompson, “Because it’s not cost effective to put in a gravel road, they’ll need more ice roads and snow trails to access exploration sites.”  Judy Grifﬁn is a freelance writer in Anchorage. www.akbizmag.com

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OIL & GAS

Point Thomson Construction © Exxon Mobil Corp.

Doyon Ltd. is building the twenty-mile pipeline that will connect Point Thomson to the existing Badami ﬁeld pipeline. Doyon installed about 2,200 vertical support members for the pipeline last winter and Doyon will install the pipe this winter, again.

Proceeding on schedule

By Mike Bradner

onstruction at the big Point Thomson field project east of Prudhoe Bay is proceeding on schedule. Work started last winter on civil infrastructure, including roads and the airfield and installation of the operations camp. Telecommunications and power supply facilities were completed this last summer, as well as bulk fuel storage tanks. ExxonMobil Corporation is the project operator at Point Thomson, and holds State-owned oil and gas leases along with BP Exploration Alaska, Inc., ConocoPhillips Alaska, Inc., and a number of small interest owners. Point Thomson construction is expected to be complete in the winter of 2015-2016 with the first liquid condensates to be shipped to the Trans Alaska Pipeline System in May 2016. The project will produce ten thousand barrels per day of liquids, although the pipeline is being built to be able to transport as much as seventy thousand barrels per day, which will allow for growth of production.

Point Thomson’s resources are well established. There are reserves of about 8 trillion cubic feet of natural gas and 200 million barrels of liquid condensates, a natural gas liquid, in the main reservoir of the field. There are additional conventional crude oil resources in the area although it is not known whether those are economic to produce. In terms of the gas, the reserves at Point Thomson amount to about one quarter of the known gas reserves on the North Slope, which means the project is very important to any future natural gas pipeline. For now, Point Thomson is providing a big boost for the North Slope service and support industry. It is the only significant North Slope construction project currently underway. About 1,100 people from sixty-five companies were employed in the summer phase of work, with over six hundred at the site at any given time. The project achieved rates of 85 percent Alaska hire last sum-

Alaska Business Monthly | December 2013

mer, ExxonMobil’s Alaska manager, Karen Haledon, told the Resource Development Council in a briefing in late September. The airfield became fully operational in early fall, which means the project now has year-around access to larger aircraft for logistics support. The roster of contractors is a “Who’s Who” list of the Alaska support industry. Alaska Frontier Constructors built the roads, site airport, and a permanent service pier for barge support. Doyon Ltd. is building the twenty-mile pipeline that will connect Point Thomson to the existing Badami field pipeline. Doyon installed about 2,200 vertical support members for the pipeline last winter and Doyon will install the pipe this winter, again. Builders Choice of Anchorage built the permanent camp at Point Thomson, which is now fully operational, providing housing and meals to about 550 workers on site last summer. Worley Parsons Group Inc. is the main www.akbizmag.com

engineering, procurement, and construction management contractor for the project, and WPG recently let a major subcontract to CH2M Hill for the installation of the large process modules that are significant parts of the plant facilities needed at Point Thomson. CH2M Hill will work with two other Alaska companies, Delta Constructors and ASRC Energy Services, on the module installation. CH2M Hill was also awarded a contract to build a standby power generation module, which will be installed in 2014. This is to provide backup power for facilities at Point Thomson. Meanwhile, ExxonMobil has hired the first group of eleven operators for the project, mostly recent university graduates recruited in Alaska. Those are now in Texas undergoing training, Haledon told the Resource Development Council. A second group of operators is also being recruited, with the focus on hiring workers with experience, she said.

Unique Aspects Point Thomson has a number of unique aspects that make it unusually challenging for the companies developing it. It is a gas “cycling” project, which means that the gas itself is produced and then injected

back underground, or cycled. When the gas is produced, however, it is very “wet” with the condensate liquids that are entrained in it. At the process plant to be built at Point Thomson, the liquids will be stripped out of the wet gas, so that it will be injected back underground as dry gas, or mostly methane, the main component of natural gas. The liquid condensates that are separated out of the gas are shipped off Prudhoe Bay through the liquids pipeline. The current plan is for about 300 million cubic feet of gas to be produced daily, with about ten thousand barrels per day of liquids extracted for sale. Meanwhile, the injected gas winds up being produced again. When it is injected dry it migrates through the reservoir rock toward the production well, which is a point of low pressure, and it reacquires more condensate liquids (becomes wet again) as it moves through the saturated reservoir rocks. The gas is produced again; the liquids are stripped off and are again injected so the cycling process repeats itself. What is unknown at Point Thomson is how efficiently this process will really work; in fact there are opinions by technical experts within the companies that

it won’t work. For example, there are also concerns that undetected faults and shale layers may be present that could impede the flow of the gas through the reservoir. The field has not had production before so the performance of the reservoir is an unknown. These questions can’t be resolved by drilling and really can’t be answered until the project starts up in 2016 and there is some production history and documentation that the fluids are moving as expected through the reservoir rocks. Because of those unknowns, and despite its size, Point Thomson is still a kind of pilot project, albeit an expensive one at several billion dollars of capital cost. If the reservoir and cycling operation perform well, the condensate production could be scaled up, possibly to about thirty thousand barrels per day. If it does not perform, the project facilities could be converted to conventional gas production (they were designed with that possibility in mind). Conversion to conventional gas production is probably in Point Thomson’s future at some point because if a gas pipeline is built the gas at Point Thomson will be needed for that. However, a large pipeline is well in the future and is still uncertain in any event, so

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December 2013 | Alaska Business Monthly

production of liquids is a way of commercializing at least some of the resources for several years before a gas pipeline is built. Another possibility, if the condensate production does not work as well as expected and the large gas pipeline is delayed substantially or not built, is that Point Thomson gas could be shipped by pipeline to Prudhoe Bay (another pipeline would be needed) and injected into that field to repressurize the reservoir and produce more oil.

Technical Challenges There are also other technical challenges faced at Point Thomson, although ExxonMobil believes it can overcome them. A major one is that the pressure of the underground reservoir is very high, about ten thousand pounds per square inch. This is much higher than other fields on the North Slope. At Prudhoe Bay, for example, the reservoir pressure at the start of its production was about half of the pressure at Point Thomson. The complications caused by high reservoir pressure are that drillers must be extremely careful when drilling into the pressurized formation so that a gas “blowout,” or an uncontrolled flow of gas, does not happen.

They do that by circulating a heavy drilling fluid through the well to keep the pressure at the bottom of the hole being drilled greater than the external reservoir pressure. That keeps gas or oil fluids in the reservoir rock and prevents them from entering the well. A second complication is that the gas being injected back underground from the surface must be at a pressure greater than the reservoir. That means the gas must be compressed to a pressure greater than ten thousand pounds per square inch. Doing that was beyond the capability of compression equipment a few years ago but now the technology is advanced to the point that it can be done. However, besides using leading-edge technology, everything in the process plant must be big, with very thick steel. That costs money, of course. ExxonMobil and its partners have been reserved about discussing the cost of the project other than it is “several billion” dollars. Other sources who are familiar with the project, however, say that its costs are in the range of $4 billion and may wind up being higher. There have been many comments that a project producing only ten thousand barrels per day and built at such high costs appears hopelessly uneco-

nomic. That may explain why the companies were so reluctant to do the project and had to be goaded by the state, which owns the lands. In fact, there was litigation and a substantial controversy before the companies agreed, in a settlement of the lawsuits, to the current project. The poor initial economics may also explain why Chevron Corporation pulled out of the project and sold its interests to ExxonMobil.

Something Larger Despite the past controversy, ExxonMobil is certainty now being aggressive in pursuing the project. However, Point Thomson development appears to make sense only if the initial project is seen as a first phase of something larger, which ExxonMobil and BP acknowledge that it is. One option, if the gas cycling works as expected, is for the condensate production to be expanded. There is certainly room in the liquids pipeline being built. Ultimately, the companies hope a large natural gas pipeline will be built and Point Thomson will become a conventional gas field supplying the pipeline. Clearly, the companies now see the current project as a first phase of something much larger.

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Alaska Business Monthly | December 2013

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However, one other uncertainty, assuming the large gas pipeline is built, is whether the Alaska Oil and Gas Conservation Commission (AOGCC) will allow the gas to be produced if that will result in some of the liquid condensates being lost. By law the state conservation commission must approve a field “offtake” rate that maximizes the overall physical recovery of both oil and gas fluids. An important point is that economics does not enter into this. The state law refers to maximum physical production, or recovery, of the hydrocarbons. This is a major consideration because there are concerns that if gas offtake from Point Thomson to a pipeline is not done properly it could result in less production of the liquids, and the AOGCC’s responsibility is to ensure that this doesn’t happen. The same problem exists in the Prudhoe Bay field where gas production, and a lowering of the reservoir pressure, could result in some loss of oil. Given this, it’s quite possible that the AOGCC could order ExxonMobil and BP, the owners at Point Thomson, to delay the taking of gas until enough condensate liquids are produced that their physical recovery will not be jeopardized. However, if it turns out the gas cycling project does not work well, the AOGCC may accept that the option to expand it is uneconomic. That would clear the way for conventional gas production to supply a gas pipeline, if it is built, or to supply the gas to Prudhoe Bay to support more oil production. No matter what happens, the extension of pipeline infrastructure to the eastern North Slope will allow for development of other oil and gas deposits in the area, some that are known. Without a pipeline these are likely uneconomic, but having the pipeline available, and with spare capacity, make it more probable that more development will occur. Also, Shell’s exploration targets in the eastern Beaufort Sea, where its Kulluk drill vessel began a well in 2012, are in an area a few miles north of Point Thomson. If Shell makes discoveries, and if they are economic, a pipeline to shore could be built to connect with the new onshore infrastructure. Meanwhile, the construction of the field and the extension of pipeline infrastructure to the eastern North Slope are of huge strategic importance to the state.  Mike Bradner is publisher of the Alaska Legislative Digest. www.akbizmag.com

December 2013 | Alaska Business Monthly

OIL & GAS

TANKER ESCORTS FOR VALDEZ AND COOK I NLET Strikingly different measures in place By Rindi White

The Crowley tanker escort tug Nanuo near Valdez.

housands of gallons of fuel flow up Cook Inlet for use in Alaska’s population center and communities beyond each year, while many thousand more of crude oil are carried from the trans Alaska pipeline terminus in Prince William Sound to refineries in Alaska, Washington, California, and Hawaii. No Alaska oil has been exported out of the country since 2004. On each end, safety is paramount, but the safety measures in place are strikingly different. In Prince William Sound, seventy training drills and exercises happen each year, with cooperation from more than four hundred private fishing vessels and 1,500 fishing crew members. Laden oil tankers are escorted and monitored by two tugs based in Valdez for the sixty-mile journey from Alyeska terminal out of the Sound. In Cook Inlet, tankers travel to and from Nikiski twice or more a week to haul crude from Alyeska to Tesoro’s oil refinery at Nikiski or take its refined products south, and an average of one or more vessels—either tankers or integrated tug/barge vessels— arrive in Anchorage each week to offload fuel. An integrated tug-and-barge system is 54

one in which a tug is affixed to or built on to a fuel-laden barge. The ITB, as they are often called, gets a tug escort from Kenai to Anchorage during the icy winter months. Although the vessel response system for a spill in Cook Inlet is not nearly as well funded and robust as the response system in Valdez, Cook Inlet Spill Prevention and Response (CISPRI) is ready to move if a spill happens or a fuel-laden vessel needs assistance. According to its website, CISPRI is a member-owned nonprofit founded by fuel shippers that provides oil spill planning, training, and response services throughout Cook Inlet. Members range from drillers such as Apache Alaska Corporation and Buccaneer Alaska Operations to shippers like Tesoro and Conoco/Phillips. The Kenai Peninsula Borough and the Municipality of Anchorage are also members. The company sponsors regular training events and holds larger drills periodically in Cook Inlet.

Top Response System in the World Alyeska’s Ship Escort/Response Vessel System, or SERVS, was created as part of the federal Oil Pollution Act of 1990, passed

Alaska Business Monthly | December 2013

in response to the Exxon Valdez oil tanker spill the year before. Out of the spill came perhaps the most rigorous oil spill response system in the world. Tanker shipping lanes are continually monitored by the US Coast Guard’s Vessel Traffic Service to allow for safe travel through Prince William Sound. Laden tankers are escorted outbound by two tugs carrying fuel spill response equipment from Alyeska Terminal to Cape Hinchinbrook where an ocean towing tug is on standby until the vessels are seventeen nautical miles off. Inbound, unladen tankers are not required to have escorts but instead are assigned a sentential tug during the transit through Prince William Sound. All aspects of the program must be able to deploy almost immediately and be able to clean 12.6 million gallons of crude oil within the first seventy-two hours after a spill. The Crowley escort tugs shepherded 281 tankers last year. The ice monitoring system has radars that can detect ice as small as an office chair. But Crowley relies on additional on-the-scene reports to confirm the radar picture. Before a tanker heads through the www.akbizmag.com

shipping lanes most frequently impacted by the Columbia Glacier, the lanes must be physically inspected for ice. At some points of the year shipping lane travel is restricted to one direction, daylight only, or even closed completely to prevent icerelated problems. SERVS contracts with Crowley Marine Services to provide ship escort services, ship assist services, and oil spill recovery services. Crowley operates twelve tugs and nine oil recovery barges. Combined, Crowley and SERVS stand ready to deploy 108 portable oil skimmers and nearly fift y miles of boom to contain oil. The equipment is stationed around Prince William Sound, ready for a fast response. The equipment is state-of-the art, says Andrés Morales, director of the SERVS program in Valdez. Powered by either twin Azimuthing drives (an eggbeaterlike propeller in a housing that can spin 360 degrees) or twin Voith Schneider propellers (a cycloidal drive driven by vertical blades), the tugs can spin on a dime. “The enhanced tractor boats [powered by Voith Schneider propellers] are stateof-the-art escort tugs. They are some of the largest operating in the world. They’re unique because their specialty is to be secured as an escort tug on a line off the stern of a tanker as the tanker is leaving,” says Charlie Nalen, vice president of Crowley’s Valdez operations. “Besides the raw power of the two engines, over ten thousand horsepower, they can turn sideways to expose their large skeg [or center-line rudder] and act as a brake. It can more quickly stop a tanker as well as direct the stern if there is a problem with the tanker,” he says. The other three tugs use controllable-pitch propellers with twin azimuthing drives. “They create huge forces in the water. They run escort alongside the tanker and, if it’s disabled in any way, they can maneuver to the front and hook up a tow package and tow the vessel,” Nalen says. Nalen says each laden tanker is assigned a lead escort tug, which is tethered to the tanker during the critical passage through Valdez Narrows, and a secondary escort tug acting as close escort. The two tugs remain with the tanker throughout the transit to the open ocean beyond Cake Hinchinbrook, south of Valdez. Then a sentinel tug remains stationed offshore until the tanker clears a safety zone well offshore. www.akbizmag.com

About 250 Crowley employees are on hand for the SERVS program, Nalen says. Of those, about 230 are mariners, he says, and about half of those are working at any time. Mariners work month-on, monthoff schedules, Nalen says. Morales says another 38-40 people are employed by Alyeska/SERVS. Workforce contractor TCC LLC and other contractors provide about another one hundred employees, bringing the total number of people employed under the SERVS umbrella to almost four hundred. Tanker escorts are only part of the

complex SERVS program. Perhaps one of the most unique aspects of it is the buyin from local fishermen. More than 450 fishing vessels are ready to respond if an emergency happens, along with more than 1,500 crewmembers. The crewmembers are required to attend yearly training sessions. The volunteer vessels are arranged in several tiers, with some tiers required to be able to respond within an hour of a spill and others within twenty-four hours or at other times. In return for the training and being on call, private vessel owners get a modest stipend.

Northland Services: Consider it done. Since 1977, Northland has provided reliable freight transportation between Seattle, Alaska and Hawaii. With more than 140 sailings annually, Northland delivers cargo to more destinations in the 49th and 50th states than any other marine carrier. Heavy equipment, construction materials, seafood or supplies to remote villages; you name it, Northland delivers. So next time, ship with confidence. Ship with Northland.

December 2013 | Alaska Business Monthly

“Having these fishing vessel owners bought into this is a critical component of our ability to respond. We need their knowledge. This is their livelihood. They bring an ownership you can’t get elsewhere,” Morales says. The safety measures are not without cost—the Ship Escort/Response Vessel System costs more than $90 million to run each year, a cost that is split between the oil shippers: Conoco/Phillips, BP, Exxon, and Tesoro. Morales says the response system is likely the most redundant system in the world. It’s worth it, he says. “There’s a quote out there—we want to be the best prepared and the least utilized response system in the world,” Morales says. “Our mandate is to protect Prince William Sound, first by preventing oil spills. We do everything possible to be sure a release of oil doesn’t happen in Prince William Sound. And if the worst does happen, we have to be able to respond to a catastrophic oil release.”

The Crowley Attentive escorts laden oil tankers out of Prince William Sound as one of two tugs for each outbound journey.

Fewer Escorts but Responders Stand By In Cook Inlet, tankers often go unguided to their destination. The Tesoro plant in Nikiski only recently began using tugs

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Alaska Business Monthly | December 2013

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when tankers dock. But as the tankers and fuel-laden integrated tug-barge systems reach Anchorage, in upper Cook Inlet, tugs from Cook Inlet Tug and Barge usually guide them to their destination. ITB’s and tugs with fuel barges are generally only escorted from Fire Island to the Port of Anchorage, Cook Inlet Tug Captain Dan Butts says. In the winter, tugs often guide the integrated tug-barges from the Kenai Peninsula and break ice for their journey, he says. The tug will generally stay one hundred feet ahead of the tugbarge to break a path for it. If ice builds up around the tug-barge, the Cook Inlet tug will circle it and break up the ice, he says. Cook Inlet Tug and Barge operates two ice-breaking tugs, the Glacier Wind and Stellar Wind, along with several other pieces of equipment. Crews live on the boat a week at a time, providing twenty-fourhour coverage. “We assist almost everything coming into and out of the Port of Anchorage,” Butts says. “That’s because of our local knowledge of the port, the speed of our boats, and the speed at which we can get things done.” Port of Anchorage operations director Stuart Greydanus says after fuel barges or

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tankers arrive at the port, Emerald Alaska takes over the loading and discharging of petroleum products. The company has emergency shutdown devices in place so if any spills happen, the loading or unloading process can be quickly stopped. Butts said the SERVS program in Valdez is unique but Cook Inlet contains its own hazards—drilling rigs, extreme tides, and significant ice. “It’s a slalom course through Nikiski Bay. It’s really, really challenging,” he says. “Then you get to Fire Island and there’s Fire Island shoal, and you have to stay away from that unless it’s during certain parts of the tide.” Cook Inlet is home to some of the most extreme tides in the United States and has a mean tidal fluctuation of thirty-six feet. All of that does make for a challenging course, but Southwest Pilots Association pilot Captain Ron Ward says Cook Inlet is relatively shallow, so anchoring a tanker that has lost power is practical and prudent seamanship. In Prince William Sound, vessels have trouble anchoring if they’ve lost power because the Sound is in many areas too deep for the anchor to reach the bottom or, if it does reach bot-

tom, lacks the chain weight needed to hold the vessel in place. The Southwest Alaska Pilots guide cargo ships, cruise ships, and tankers traveling in Cook Inlet as well as all tanker traffic in and out of Valdez through Prince William Sound. Their abundant local knowledge allows the ships to be safely piloted. It’s a practice that has been going on for centuries; Ward jokes that having vessels piloted by mariners with knowledge of the local hydrography is the world’s second-oldest profession. Ward says, in his opinion, tanker escorts of the type used in Prince William Sound aren’t required to mitigate the risk of navigating the shallower hydrography of Cook Inlet where anchoring is feasible. “The reason in my mind, as a pilot, that we don’t have escorts in Cook Inlet is, we transit the inlet in the ice, in lots of current which limits the effectiveness of escorts. And the depths along our routes allow us to utilize the anchors in an emergency, which is not an option in Prince William Sound,” Ward says.  Rindi White is a freelance journalist living in Palmer.

December 2013 | Alaska Business Monthly

TRANSPORTATION

Photo by Mark Smith / Courtesy of Northern Air Cargo

Northern Air Cargo workers loading freight in the Alaska darkness.

Air Cargo Services at Ted Stevens Anchorage International Airport

t is hard to overestimate the importance of air cargo services in Alaska. Unlike cities in the Lower 48 that rely on vast transportation infrastructures that enable them to receive goods from around the world by truck, barge, railroad, or plane, many of the 49th state’s rural communities are extremely limited in how they can receive the day-to-day goods they need to survive. Air cargo services at Ted Stevens Anchorage International Airport and the Fairbanks International Airport—both members of the Alaska International Airport System—also provide huge economic benefits to the state. “The airport’s economic impact is huge—15,500 jobs or one in ten jobs in Anchorage,” says John Parrott, airport manager, Ted Stevens Anchorage International Airport (TSAIA). “That equates to about $562 million in direct annual payroll and about $288 million in annual payroll for community jobs.” While feeling some effects of the recession, TSAIA is holding its own. “We are ranked the second most active cargo airport in the United States behind Memphis, Tennessee, and the fift h busiest airport in the world for cargo throughput,” Parrott says. “Being ranked in the top five in the world behind Hong Kong, Memphis, Shanghai, and Inchon, Korea, is heady company for a little airport in Alaska.” According to Parrott, landing weights are down about 25 percent from the airport’s heyday of 2007, primarily as a result of the global economy. “North America is 58

Providing beneﬁts across Alaska and globally By Vanessa Orr

not buying as much, so China is not making as much, which means there’s no need to ship as much,” he explains. “While we have seen some modal shifts, such as companies shifting to surface transport, the simple fact is that the sluggish global economy has decreased the amount of cargo being shipped.”

Advantages of Flying through Alaska For many carriers, especially those overseas, TSAIA is the most logical place to land. “It’s all about location, location, location,” Parrott says. “We’re within nine and a half hours of 90 percent of the industrialized world. “A single wide-body aircraft is able to carry one hundred thousand pounds more cargo by landing in Alaska,” he continues. “To overfly us, a carrier would need to load up on fuel and take cargo off, and no one pays to fly fuel. If a company is able to put one hundred thousand more pounds of cargo on a plane, it goes directly to their bottom line.” The fact that Fairbanks International Airport is extremely close is also advantageous to carriers. “Over its fifty-year history, other than on 9/11, the Anchorage and Fairbanks airports have never been closed at the same time,” Parrott says. “They are separated by two hundred miles and different weather patterns, which virtually guarantees that another airport is always close by and available. And it’s easy for carriers because they’re dealing with the same fees, costs, and infrastructure routes.

Alaska Business Monthly | December 2013

“An air carrier that flies nine and a half hours over the Pacific Ocean to Anchorage for a technical stop or to offload cargo needs a safe and efficient place to land,” he adds. “Despite our best efforts, sometimes weather events like snow, fog, or even an active volcano can close the airport. Without Fairbanks, the next closest place to land is in Seattle, which is three more hours ‘down the road.’” The Alaska International Airport System also offers the most liberalized air cargo transfer rights in the United States. Since January 2004, air cargo to or from a foreign country is allowed to be transferred to another airline in Alaska without being considered to have broken its international journey. “Our liberal cargo transfer program enables foreign flagged airlines to be more efficient,” Parrott says. “Instead of keeping cargo on the same aircraft that then has to fly to the Lower 48 to offload its cargo to other carriers to distribute across the country, they can distribute everything in Alaska to the route structure that flies closest to that cargo’s final destination.” Several foreign-flagged carriers have taken advantage of this policy, including airlines from Japan, Korea, and China. “This program is unique and unusual enough that many foreign airlines are not familiar with it, so they are not doing it to the scope and scale that they could,” Parrott says. “We go to Asia every year or so to talk to the decision-makers; like many companies, air carriers and airports have www.akbizmag.com

Types of Cargo According to Parrott, much of the cargo that comes through TSAIA is high-value items like electronics that are not very heavy, but command higher prices. “Whatever the ‘device of the day’ is—that’s their real bread and butter,” he says of carriers transporting smartphones and electronics. “It seems counter-intuitive, but they also carry auto parts between factories in Asia and factories in the Lower 48,” he says and adds that clothing is also a timesensitive item. This year, Alaska Air Cargo will process over 80 million pounds of cargo at TSAIA, including inbound and outbound mail and freight. According to Joe Samudovsky, director, Alaska Air Cargo Sales and Marketing, this places the Anchorage airport “neck and neck” with Alaska Air Cargo’s Seattle station which will process a similar amount. www.akbizmag.com

Bringing

Alaskans Together

“ Get cargo in days instead of weeks.

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a fair amount of turnover, so it is a constant education process.” In addition to visiting Asia, the airport also hosts the Alaska International Air Cargo Summit, open to North American and Asian air carriers and cargo industry players. “The summit is an opportunity for us to engage with cargo partners, in particular, Asian carriers and domestic cargo partners,” says Steven Hatter, deputy commissioner, Alaska DOT and Public Facilities and executive director of the Alaska International Airport System. “It gives us a chance to update carriers on business opportunities and demonstrate what we can provide. “Anchorage and Fairbanks offer unique capabilities that other US airports don’t have,” Hatter continues. “For example, a foreign flagged carrier can have smaller foreign flagged gauge aircraft at Ted Stevens International, which enables them to fly into our airport and transfer their cargo to smaller jets that can then fly to other US sites from Anchorage. And the same can be done in reverse. That option is not permitted in any other states than Alaska and Hawaii.” While the majority of outreach efforts have been made to Asian carriers, the state is looking at other audiences as well. “There is an opportunity, if you’re looking geographically, to make South American connections,” Hatter says. “We are reviewing time, distance, and market opportunities to see where Anchorage fits in as a stopover point as other countries look to expand their business models.”

Bringing Alaskans Together Some services are provided by other airlines in the Era Alaska family.

flyera.com

December 2013 | Alaska Business Monthly

Photo courtesy of Alaska Air Cargo

Alaska Airlines and the Alaska Seafood Marketing Institute teamed up to paint the Salmon-Thirty-Salmon II because a signiﬁcant portion of the airline’s cargo business is in wild Alaska seafood.

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Alaska Business Monthly | December 2013

AFFinABM.com

According to Samudovsky, cargo numbers are up slightly this year, fueled by a very strong seafood season. “It did get off to a late start; in late May and most of June, the seafood numbers were disappointing,” he says. “But July, August, and September more than made up for the late start.” Fresh seafood is a huge component of Alaska Air Cargo’s business, with the majority of seafood transiting from Southeast Alaska into Anchorage and then to the Lower 48. Alaska Air Cargo also serves eighteen different communities throughout the state, transporting consumer goods, US mail, and oilfield equipment and supplies, among other items. “We carry pharmaceuticals and life science products including blood, diagnostics, and medical equipment along with a lot of perishables,” Samudovsky explains. “We transport fresh produce out of Anchorage that is barged in from the Lower 48 or flown in by us from the Lower 48 to outlying communities.” As Alaska has gained more connectivity, the demand for products from outside has increased. “In the last several years in particular, telecom companies like GCI have expanded in rural Alaska, which has resulted in e-commerce really taking off,” says Samudovsky of the growth in the business-to-consumer industry, fueled by companies like Amazon and the Home Shopping Network. Samudovsky believes that the air cargo industry also benefitted from the federal infusion of money for construction work within the state. “Even while the economy was slumping, carriers benefited from increased construction activity, and our rich natural resources, including oil, gas, and the seafood industries, kept business actively flowing,” he says. Northern Air Cargo has seen its cargo volume decrease by about 3 percent, though its numbers for transporting nonpriority bypass mail has remained static. “A lot of it has to do with the economy— folks have less disposable income right now for shipping freight, so they aren’t shipping as much as they typically do,” explains David Squier, vice-president of Cargo Services, Northern Air Cargo. “However, most items that they need on a daily basis, such as food and groceries, are shipped through bypass mail, which is why that number remains static.” Squier says Northern Air Cargo ships about 18.5 million pounds of cargo per year out of Anchorage (not including bypass mail), which is essential to those who live www.akbizmag.com

in outlying communities. “Because of the uniqueness of the state of Alaska, air cargo service is critical here,” he says. “Anywhere else, there are other options like roads or rail, but there is no rail service or roads other than in Anchorage and Fairbanks, and there is limited barge service to spots along the coast and no barge service inland. A disruption in air service can have catastrophic effects in rural Alaska, where they may only have a two-to-three-day stockpile of food.” While much of what carriers transport is needed for day-to-day survival, they are also able to transport special deliveries that can help improve communities’ quality of life. “Within the last couple of years, we have been very fortunate to be able to give back,” Samudovsky says. “Last year, Alaska Air Cargo assisted in transporting infant cribs for Thread Alaska to help replace cribs that had been deemed obsolete and unsafe. Recently, we partnered with the International Association of Firefighters and Operation Warm Coat to transport new donated winter coats for children in Alaska. And within the last couple of weeks, we shipped thousands of pounds of children’s books on behalf of First Book Alaska. While cargo is an important part of our business, we also see it as an opportunity to give back to the communities we serve.”

Slope,” Samudovsky says. “The way the seafood industry and fisheries are managed within the state, which, in my opinion, are managed extremely well, also gives us a longterm sustainable resource for years to come. “Another area for growth is health care,” he adds. “In rural Alaska, with the poor transportation infrastructure, getting health care-related shipments to market is not unlike the challenges seen in Third World countries. Key medical products—such as vaccines, lifesaving drugs and cord blood—have a limited shelf life and need to move by air. Health care will

continue to be a growing and important aspect of our business.” No matter what type of cargo needs to be shipped, the Alaska International Airport System is ready to deliver. “I’m not sure if people really think a lot about the value of these airports, but we are blessed in this state to have this airport system,” Hatter says. “It’s important to everything that we do.”  Vanessa Orr is the former editor of the Capital City Weekly in Juneau.

The Future of Air Cargo in Alaska As the economy continues to improve, so will the opportunities for air cargo carriers in the state. This will benefit not only the communities the carriers serve, but the state as a whole. “The airport is responsible for or supports more than fifteen thousand jobs, and a significant portion of that is supported by the air cargo industry,” Parrott says. “Cargo operations provide over half of airline revenue through landing fees and fuel loading fees, which is a significant part of the economic engine of the airport, the city, and the region.” Ted Stevens Anchorage International Airport is currently in the process of completing a master plan with the goal of meeting the state’s future needs. “The future will be demand-dependent; our goal is to be able to expand the airport as needed, as well as to continue working with Fairbanks to maximize the efficiencies of the Alaska International Airport System,” Parrott says. “Looking forward, we anticipate that cargo volume will pick up as a result of Senate Bill 21 that provided oil tax reform, which will result in increased activity on the North www.akbizmag.com

December 2013 | Alaska Business Monthly

PHILANTHROPY

The Alaska Community Foundation Developing permanent assets and growing philanthropy By Laurie Evans-Dinneen

n the threshold of its 20th anniversary of giving in 2015, The Alaska Community Foundation (ACF) has plenty to celebrate. As the central organization for donor advised funds, affiliate funds, nonprofit organizational funds, and field of interest funds, it represents the best of Alaska’s shared value of giving back to its communities, changing lives for the better. Growing its corpus to $62 million, ACF has 297 different funds and grants close to $6 million annually to communities across Alaska through its many affi liates, partners, and donor funds. Gifts of kindness come to ACF in many forms—donations, bequests, property, life insurance, closely held stock, and other assets. When the money is pooled into invested funds, that money grows and becomes the nuggets of various funds that then provide grants based on specific charitable interests. As a funding agency itself, ACF’s purpose is, “to connect people who care with causes that matter by encouraging and nurturing philanthropy.” Established in 1995, it was intended to assist individuals and organizations in creating charitable funds. “Rather than setting up a private foundation,” states Candace Winkler, president and CEO, “individual donors can set up a family fund through ACF reducing the burden of infrastructure, legalities, and other complexities. There is also a better tax benefit to the donor because the IRS enables the donors to deduct up to 50 percent of annual adjusted gross income for gifts to a donor advised fund at a community foundation versus only 30 percent for gifts given to a private foundation.” Many Alaskans are familiar with the Rasmuson Foundation, which is a private family foundation that has grown to nearly half a billion dollars. However, many other longtime pioneering Alaska families have all taken advantage of the secure services of ACF to develop their family legacies through donor advised funds, including the Hickel, NortonCruz, Kaplan-Sather, and Eliason families.

The Alaska Community Foundation President and CEO Candace Winkler speaking to senators in Washington, DC. Photo courtesy of ACF

Many of these funds are endowed, which allows for continuing in perpetuity because the grants given will never dip into the principal. “Private foundations are obligated to give a minimum of 5 percent in charitable grants,” Winkler explains. “Under ACF, the family funds are not obligated to give at all in any given year if they choose instead to grow the assets. In normal years, these funds will give away 4 to 5 percent in grants.” To ensure checks and balances, the ACF Board is responsible for setting the spending amounts to keep the fund endowed forever. Susan Foley, attorney and partner at Foley & Foley, PC, has been on the ACF board of directors for eight years and served as chair in 2011 and 2012. At work, she counsels clients who want to leave a legacy. “I help them determine and attain their philanthropic and estate planning goals,” Foley says. Therefore, with the ACF board, she takes her role very seriously because she understands the donor’s view. “Endowments challenge us to balance Alaska’s future needs with a desire to work toward a better present. Donors to an endowment are, literally, ‘paying it forward.’ An endowment is intended to be a source of continuing income forever. ACF board members are entrusted with determining what should be disbursed now and what should be invested to make income for the future.”

Alaska Business Monthly | December 2013

Whether an individual, a family, a corporation, or another nonprofit, having a charitable fund with ACF takes advantage of economies of scale because the funds are comingled for investment purposes which provides for more growth potential and proceeds are allocated back out to each individual fund for the purpose of grant making, thereby ensuring the donors’ intent. Winkler says, “If an individual donor makes a gift to ACF, they still get the tax benefit, and they retain the ability to advise on the type of grant to give or charities to fund. This gives the donor’s money a life of years rather than a one-time donation to a group or cause.” These are called donor advised funds, and an ACF program officer will work with the donor on selecting charities and projects, while the board ensures that grants are in keeping with the original intent of the donor.

Various Funds and Grant Projects As noted, ACF is the steward of 297 different funds. A great example is the Anchorage Schools Foundation (ASF), a field of interest fund at ACF, set up by founder and board chair Karin Wanamaker. ASF was set up at ACF and is in its fift h year. Being under ACF allows the fund to meet its mission of serving the unique needs of teachers in the Anchorage School www.akbizmag.com

Alaska Native Heritage Center

An Alaska Native Heritage Center intern dances on stage.

Elder Marge Nakak teaches the art of beading.

A Dynamic Part of the Community

The Alaska Native Heritage Center preserves and strengthens the traditions, languages, and art of Alaska’s Native People through statewide collaboration, celebration, and education.

ince 1999 the Alaska Native Heritage Center has been a dynamic part of the Alaskan community as the sole organization that shares culture and art from all Alaska Native people. For many residents and visitors, ANHC is their only resource for Alaska Native cultural experiences. Our newly-adopted mission statement affirms our responsibility to remain at the forefront of Alaska Native arts and culture preservation and revitalization and to represent all Alaska Native peoples equally. Strengthening Alaska Native Identity Our nationally-award winning High School Program and Walking in Two Worlds, our program for at-risk middle school students, connect youth to their culture through instruction in Native dance, games, and art. Both programs foster personal growth by instilling self-pride and teaching responsible behaviors to help participants succeed as adults—ultimately strengthening Alaska’s future. In the 2012-13 school year, 86% of our high school students graduated on time, and 100% of our middle school students advanced to the next grade. ANHC was awarded one of 10 Robert Wood Johnson Foundation grants nationwide to fund a pilot project expanding our

afterschool programming to at-risk young men in McLaughlin Youth Center, Benny Benson School REACH program, and the SAVE II program. Students in our afterschool programs can also participate in the summer internship program—gaining skills in public speaking, customer service, and performance. Caroline Wiseman (Iñupiaq) 2013 intern says, “The Alaska Native Heritage Center has helped me accept and be proud of my culture, which has become one of the most important aspects of my life.” ANHC is committed to strengthening Alaska Native languages. During the summer of 2013 we coordinated language immersion camps and hosted Yup’ik, Tsimshian, Tlingit, and Inupiaq language circles that are open to anyone who wants to learn. Our plans include increased language learning opportunities for this vital element of Alaska Native cultures. Celebrating 15 Years ANHC celebrates our 15th Anniversary in 2014 and the new year promises to be our most exciting yet! Summer 2014 will bring an explosion of Alaska Native arts with tradition bearers working alongside artist apprentices producing works such as qayaks, — PAID ADVERTISEMENT —

totem poles, and regalia. Over the next 10 years we will be celebrating the 10 Universal Alaska Native Values. Selected by a committee of elders, tradition bearers, and educators from all regions of Alaska, these values represent the shared values of Native cultures. The importance of these values to Alaska Native cultures is expressed by Annette Evans Smith, CEO and President of ANHC, “Alaska Native values uniquely define Alaska as a place with 10,000 years of human history. They represent the fundamental building blocks that support and define our way of life and worldview. That is why for our 15th anniversary our deeply held values will serve as the cornerstone for our artistic plan.”

A L A SKA NAT I V E H E R I TAG E CENTER A nonprofit organization We invite you to get involved, learn more, volunteer, or donate to Alaska Native Heritage Center. To learn more please contact us at 907-330-8000 or 800-315-6608 www.alaskanative.net

District without the foundation needing to be big enough to support a staff and office overhead. Wanamker is delighted with the arrangement. “ACF has successfully managed the fund and our grant making work so that the board could focus on our mission of enhancing the educational experience of students in Anchorage,” she says. The grant making is significant because the application process is handled completely by ACF. ASF recommends the grants to fund and is independent of the school district. ACF distributes the check and receives the grant reports. Sample projects include hydroponic gardening supplies for basil growing at Airport Heights Elementary; Yupik books for the library at Taku Elementary; math manipulatives for higher level math at West High; fabric and sewing supplies to create Kuspuks for the Native Charter School; and a rice cooker for providing food all day for hungry students in a classroom. “Our job is to give money to teachers who are doing great things,” says Wanamaker. “Three years ago we created an emergency fund, a project fund at ACF. Through this fund, we are able to meet emergency needs of students at six pilot schools in our community.”

Affiliates and Partners Alaska has several local community foundations that have developed over the years, and nine of those groups have made the decision to become an affiliate of ACF, which means they have local leadership and presence without having to create their own costly legal infrastructure. “We all know Alaskans who have done well and have retired out of state, taking their money with them and giving it to charities Outside,” Winkler says. “Having a local community foundation fund allows for the conversations to begin locally, with neighbors asking neighbors to give back to the community they both love.” ACF adheres to the best practices of the National Council on Foundations—financial management, legal and IRS compliance, and infrastructure—but each affiliate determines the needs, priorities, and goals of their local community. The Affiliate program began in 2008 with generous support from the Rasmuson Foundation. The Community Asset Building Initiative provided an incentive for community members to consider local donations with a match by the Rasmuson Foundation. The idea was, and is, to build local resources, local community foundations that then fund 64

future community needs. The combined efforts allow for the permanence of local funds and community sustainability. Affiliates of ACF include Chilkat Valley Community Foundation, the Jessica Stevens Community Foundation, Kenai Peninsula Foundation, Petersburg Community Foundation, the Seward Community Foundation, the Golden Heart Community Foundation, Greater Sitka Legacy Fund, Ketchikan Community Foundation, and the Kodiak Community Foundation. ACF also collaborates with and provides some support to three partner community foundations that legally have their own infrastructure and manage their own endowments but have some of their funds held at ACF: Juneau Community Foundation, Homer Foundation, and Arctic Slope Community Foundation. “Because there are several local people who have done well, they come to find this as the best way to leave their money to their community,” Winkler says. “It is expensive to start a foundation on your own, but under the affiliate structure, donors can be assured that local voices will set community goals and funding priorities while the statewide structure ensures compliance and efficiency of resources.” For the Seward Community Foundation, Board member Kim Reierson states, “In 2008 I attended a reception where the idea of creating the Seward Community Foundation was introduced to the community. I knew immediately that this was a good thing for our town. I had never heard of a community foundation before and the idea of creating a permanent endowment for our citizens was an exceptional idea.” This is the can-do forward thinking that is necessary to do the work. The Seward Community Foundation raised the $25,000 necessary in 2008 to receive the Rasmuson match, and in 2009, under a second match, the Foundation grew to $150,000 from the generous gifts and donations from residents in Seward and Moose Pass. Reierson says, “Along the way, the Seward Community Foundation received operational support from ACF. They gave us training and technical assistance and provided the administrative and financial infrastructure that we needed to operate. These services continue to be provided to us.” It is ACF’s “strategy of using profits from investments to fund charity,” as stated in the Report to Alaskans, that appealed to one major donor. A long-time Seward resident, Tony Rollo, passed away and left the Seward Community Foundation a $1.9 million bequest.

Alaska Business Monthly | December 2013

Reierson says that Tony was a well-known local, often seen at the grocery store riding his electric cart and eating ice-cream. He looked like a typical old-time Alaskan. “His financial advisor had told him about the Seward Community Foundation and how by bequeathing his estate to the foundation, he could give to his community forever. His response was, ‘That makes sense!’ Tony’s gift has changed Seward evermore,” Reierson says. This bequest has assisted the Seward Community Foundation to truly be able to support its community and citizens for years into the future. With the help of ACF, it is in a position that would normally take years for a foundation to achieve. One of the project highlights listed is called “Senior Surf Camp 101,” a grant of $1,800 to the Seward Senior Center assists its residents in computer and Internet skills and has opened up a whole new world of connectivity for isolated seniors, some reconnecting with families Outside. Another example of what Seward Community Foundation funding means to nonprofits, Reierson says, is the Seward Boys & Girls Club’s summer DaVinci camp. “This is a four-week summer program for elementary school children that combines the arts and sciences to help them learn about the world around them during summer break. While the director of the Boys & Girls Club does an excellent job, this camp would not be possible without Seward Community Foundation funding.”

The Philanthropy Hub In its new offices on the ground floor of the Calais I Building in Midtown Anchorage, ACF has developed the Philanthropy Hub, a space for ACF and other funders to be housed together, again, combining resources and making efficiency of infrastructure. The Hub was the brainchild of Winkler when it became obvious ACF had outgrown its office in Downtown Anchorage. As the anchor organization in the Philanthropy Hub, ACF provides physical and technology infrastructure, conference space, and reception services to other groups and then charges rent to cover a portion of the shared expenses thereby reducing some of its own costs and that of the other groups. Thus more resources can go into the mission critical components of grant making. Almost all of the furniture and office components were donated by Conoco Philips and Alyeska Pipeline Service Company, and the Rasmuson Foundation invested in the space to help bring down the rent. www.akbizmag.com

“The Philanthropy Hub is an important and growing resource for the community that ACF serves: our state of Alaska,” Foley says. “It’s a place where Alaskans can work together for a better future. That’s a legacy of hope; an experience that’s all too rare.” The Anchorage Park Foundation is part of the Hub. It started as a project fund at ACF in conjunction with the Municipality of Anchorage, but as donations increased, the grants increased, so they found themselves requiring more staff, and eventually it grew into its own nonprofit. “We joined the Philanthropy Hub to be a part of growing philanthropy in Alaska. Though we focus on parks and trails with our investments, the essence of our work is community building. We came to the right shared space—working with other community leaders sparks a natural synergy for creating a culture of giving,” says Beth Nordlund, executive director of the Anchorage Park Foundation. The Hub also houses Pick.Click.Give., the Pride Foundation, the Alaska Children’s Trust, Alaska Kidney Foundation, and two consultants that work with nonprofits, Denali Daniels and Associates and Rider Consulting. When the ACF was looking for space, Winkler says, they were also looking

40th year of empowering young people to own their economic success

to accommodate a large conference room. As an incubator of many unique projects, ACF hosts “Conversations About Causes That Matter” out of its offices and larger local venues. “We want people to engage in their community, to make their community stronger,” Winkler says. “Conversations are another way to get topics to an informed community, to give back to the community, to get groups connected.” Topics have included healthcare, early childhood education, family philanthropy, teen suicide, and the intersection of art and health. ACF has also hosted several of the Ted-talk speakers in the past several years. After receiving a Knight Foundation grant to start Town Square 49, which ACF helped to frame and shape in partnership with Alaska Public Media, ACF received additional funding from the Knight Foundation to work with the local newspaper for a year to produce more data driven reporting. Using the Recover Alaska topic, ACF is funding a reporter and a photographer to cover substance abuse for one year. Winkler says this would give people an ability to understand the issue of alcoholism and substance abuse on both a statewide and a local level.

The community-minded Conversations About Causes program invites the general community to attend. The talks vary in structure and facilitation, Winkler notes, sometimes hosting a panel or a single speaker. Locally, thirty to sixty people usually attend, and ACF will videoconference or make pod casts. The idea is to get experts and knowledgeable perspectives on the topics. About a year ago, ACF hosted a Community Building Event with 150 people from fifteen different communities where facilitator Louise Van Rhyn helped participants see how they could uniquely contribute to the shared community of Alaska. The idea is to connect with everyone to recognize what they contribute to their community and how to do more. Foley points out philanthropy stems from two Greek words: philos (love) and anthropos (mankind). “Philanthropy is, literally, the love of mankind,” she says. “As the culture of philanthropy becomes more and more prevalent, I hope philanthropy hubs will be established in communities throughout our state.”  Laurie Evans-Dinneen writes from Anchorage.

Celebrate Junior Achievement’s Business Hall of Fame Laureates Dena’ina Center - January 30, 2014 5:30 p.m. reception, dinner/ceremony 6:30 p.m.

Honorees Walter J. Hickel Jr. – Hickel Investment Company/Hotel Captain Cook Martin Pihl – Alaska Timber Insurance Exchange The Doyle Family – Weaver Brothers The Helmerick Family – Colville Brooks Range Supply

Chris von Imhof – Alyeska Resort

Call Flora Teo at (907) 344-0101 to reserve a table at this prestigious event or go to http://alaska.ja.org for more information www.akbizmag.com

Sponsorship opportunities for the gala induction ceremony on Jan. 30 at the Dena’ina Center. Platinum Sponsorship – $4,000 Gold Sponsorship – $3,000 Silver Sponsorship – $2,500 Table – $1,500

December 2013 | Alaska Business Monthly

RIGHT MOVES Denali Alaskan Federal Credit Union

Compiled by Mari Gallion UMIAQ

as Copywriter. Ellison holds a Bachelor of Fine Arts in Graphic Design from Mesa State College in Grand Junction, Colorado. Bodry holds a Master of Arts in English Literature from the University of Alaska Anchorage and has taught English at the university level.

WHPacific, Inc.

Melton

Felix

Sarah E. Melton has been hired as In-House Counsel and AVP of Compliance at Denali Alaskan Federal Credit Union. Melton graduated from the Northwestern School of Law at Lewis & Clark College in Portland, Oregon. She received her bachelor’s degree from the University of Colorado at Boulder, graduating summa cum laude and a member of Phi Beta Kappa. She is also currently enrolled in the Executive MBA in Strategic Leadership program at Alaska Pacific University. Michelle Felix was promoted to Senior Marketing Officer. Felix is a University of Alaska Southeast graduate with a Master of Business Administration and a Bachelor of Arts in English from the University of Alaska Fairbanks.

Doyon Anvil

Werner Plagge will serve as Doyon Anvil’s President and General Manager. Plagge has worked for Anvil Corporation for twenty years and led the strategic alliance effort to merge with Doyon Emerald.

EPA

The US Environmental Protection Agency announces that Jim Woods, of the Makah Tribe in Neah Bay, Washington, will continue as the region’s Senior Tribal Policy Advisor for an additional twoyear term. Woods will focus on promoting effective and meaningful government-to-government interaction with tribes in Alaska, Idaho, Oregon, and Washington.

Solstice Advertising

Solstice Advertising announces the hire of Casey Ellison as Graphic Designer and Catherine Bodry

WHPacific, Inc. announces the addition of Nathan Bosch as Environmental Scientist I to the company’s Anchorage office. Bosch has a Bachelor of Arts in Geography from Calvin College and is currently pursuing a Master of Science in Environmental Science at Alaska Pacific University.

NeighborWorks Anchorage

Harcharek

Shake

Nagruk Harcharek has been named UMIAQ Science Logistics Manager. Harcharek earned his Bachelor of Science in Aeronautical Science from Embry Riddle Aeronautical University and his Associate of Science in Small Vessel Fabrication and Repair from Honolulu Community College. Cindy Shake has joined their team as Marketing and Communications Manager. Shake earned her Bachelor of Arts in Liberal Studies and graduated Summa Cum Laude from Alaska Pacific University.

Credit Union 1 Gilbert

Kropke

Ryan Gilbert has been hired as the Director of Operations at NeighborWorks Anchorage. Gilbert is also Managing Partner of Alaska Consulting Group. Matt Kropke was hired as Director of Real Estate Development. Kropke recently completed the Master of Public Administration at University of Alaska Anchorage.

University of Alaska

Mary K. Hughes of Anchorage, the University of Alaska’s longest-serving member on its Board of Regents, has been appointed to the Association of Governing Boards of Universities and Colleges, the country’s premier authority on higher-education governance. Hughes graduated from the University of Alaska with a Bachelor of Business Administration in Management in 1971 and earned her juris doctorate from Willamette University College of Law in 1974. She is the first Alaskan to serve on this national board.

Ellis

Newins

Credit Union 1’s President and CEO, Leslie Ellis, will retire at the end of this year after a thirty-year career at the helm. Chief Operating Officer Tom Newins will replace her as President and CEO. Newins holds a Bachelor of Science in Accounting and graduated this summer from Western CUNA Management School.

Matanuska-Susitna Borough

Colonel Terrance “Terry” Dolan has joined the Matanuska-Susitna Borough as Public Works Director. Dolan received a Master of Science

SLED DOGS & SOFAS & MILK

OH MY!

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Alaska Business Monthly | December 2013

www.akbizmag.com

RIGHT MOVES in Management from the University of Central Michigan and a Master of Science in Strategic Security Studies from the National Defense University. Dolan comes to the Borough after a career of more than twenty-nine years with the US Army at bases around the world. He has been awarded the Bronze Star Medal four times for service in combat between 1991 and 2013.

Alaska Communications

Alaska Communications announces that Randy M. Ritter will join its management team as Senior Vice President, managed services. He brings to the company more than twenty years telecommunications experience.

Northwest Strategies

Northwest Strategies announces the addition of Rachel Kenshalo, Account Supervisor, to their account team. Kenshalo is a graduate of the Journalism and Public Communications program at the University of Alaska Anchorage.

Rasmuson Foundation

Compiled by Mari Gallion as a Communications Associate. Bokar has a degree in public policy and social change with a concentration in technology from Bentley University. Claudia Maria-Mateo has joined the staff as an Administrative Assistant overseeing front desk operations. Maria-Mateo has a degree in organizational management with a concentration in security from the University of Phoenix. RasmusonFoundationalsowelcomes RonWilmot, a program intern, as he pursues a master’s degree in social work at the University of Alaska Anchorage.

CONAM Construction Company

Bill Binford, PE, PMP has join e d CO N A M Construction Company as North Slope Area Manager. Binford has more than thirty years of experience in con- Binford struction and project management and more than thirteen years of Alaska North Slope project experience.

NANA Construction, LLC.

Bass

Bokar

Rasmuson Foundation announces the addition of three new staff members and welcomes a new intern. Emily Bass has returned to Rasmuson Foundation as a Program Assistant. Bass holds a Master of Arts in Social Work from University of Maria-Mateo Alaska Anchorage with a focus on policy and positive community change. Emily Bokar has joined Rasmuson Foundation

Sagen Juliussen is NANA Construction, LLC’s new President. Juliussen brings more than twenty-eight years of experience to the position, including work as a Vice President, Owner Representative, Contractor and Craftsman. He has been involved in many major projects in the oil and gas, petrochemical, power generation, and mining industries.

Alaska Heart and Vascular Institute

The Alaska Heart and Vascular Institute has added six new mid-level providers to its team of highly skilled cardiovascular experts, including Susan Morrow, ANP; Even Evanson, PA-C; Marianne Hoosier, PA-C; Tina Smith, PA-C; Cora Bosshart, PA-C; and Denise Valentine, ANP. Hoosier earned her Master of Medical Science from Emory University School of Medicine. Morrow earned her Master of Science in Nursing from the University of South Florida.

Smith received her Bachelor of Science from the University of Nebraska Medical Center. Evanson has worked in the medical field for more than eight years and graduated from the University of Washington physician assistant program. Bosshart graduated from Oregon Health and Science University with a Master of Science in Biomedical Informatics. Valentine received her Master of Science in Nursing from the University of Alaska Anchorage.

Crowley

Crowley’s petroleum distribution group in Alaska has appointed Tom “TC” Craig as General Manager, Southeast Alaska, and charged him with leadership of a new business group created by the recent acquisitions of local fuel distributors Anderes Oil in Ketchikan and Taku Oil Sales in Juneau. The company has also named Jim Fowler as Sales Manager and Tom Erickson as Operations Manager for Southeast Alaska. All three men bring a wealth of knowledge and experience to the Crowley team.

American Fast Freight, Inc.

American Fast Freight, Inc. has promoted Ron Moore as their new company Sales Manager for the state of Alaska. Moore received a Bachelor of Business Administration from Transylvania University in Lexington, Kentucky.

Salvation Army

The Salvation Army, Alaska Division is pleased to announce the appointment of Ivy Spohnholz, CFRE as the Divisional Director of Development. Spohnholz earned her Bachelor of Arts in Political Science from the University of Washington.

Denali Alaskan Home Loans

Laurie Lyons joins Denali Alaskan Home Loans as a Senior Loan Originator. Lyons has more than eight years of experience in the mortgage industry.  Lyons

W W W. N AC . A E R O • ( 8 0 0 ) 7 27 - 214 1 • www.akbizmag.com

December 2013 | Alaska Business Monthly

special section

Conventions & Corporate Travel

Photo courtesy of Juneau CVB

Centennial Hall Civic Center in Juneau.

Alaska’s Abundant Meeting and Convention Venues Wide range of options for getting people together By Susan Sommer

lanning a meeting or convention in Alaska? Rest assured, there are plenty of venues to choose from. The largest facilities are, predictably, located in the population centers of Anchorage and Fairbanks and include industry standard audio-visual technology, professional planning assistance, and catering services. These include Anchorage’s Dena’ina and Egan Centers as well as the Carlson Center in Fairbanks. Numerous other communities offer smaller spaces that range from modern convention centers such as the Valdez Convention and Civic Center with its port view of oil tankers coming and going to intimate historical structures like the restored St. Joseph’s Church in Nome.

Southcentral The Dena’ina Civic and Convention Center in downtown Anchorage is the state’s newest and largest facility of its kind. With almost 200,000 square feet of flexible event space, “the Dena’ina,” as locals refer to it, 68

comes with state-of-the art kitchen facilities plus views of the Chugach Mountains to the city’s east. The center, which opened in 2008, is named for the Dena’ina Athabaskan Native culture of the region. The Dena’ina welcomes groups for conventions, trade shows, corporate meetings, award banquets, weddings, auctions, and seminars as well as for unique annual events such as the Oxygen & Octane Expo. Billed as “Alaska’s largest winter adventure show,” the expo attracts hundreds of attendees shopping for everything from snowboards to snow machines to big trucks with snow plows. Large objects arrive in the Dena’ina’s event space via loading docks and huge elevators, one of which is large enough to hold an African elephant. Three main types of rooms are available at the Dena’ina. All are named in honor of the Athabaskan language. The Idlughet (Eklutna) Exhibit Hall on the ground floor is 47,400 square feet. It can be used for booths or banquets or as a classroom or theater

Alaska Business Monthly | December 2013

space. As a theater space, it can accommodate 5,000 people. On the Dena’ina’s second floor are three distinct meeting rooms that can be configured into additional rooms for a total of 11,000 square feet. Each room has automatic screens to control room temperature and lighting. On the third and final level of the center is the Tikahtnu (Cook Inlet) Ballroom, typically used for company holiday parties, charity balls, keynote convention speeches, and the like. It offers floor-to ceiling windows and a heated outdoor terrace with mountain views. With nearly 25,000 square feet of meeting space plus 15,000 square feet of lobby space, this is a favorite venue for both Alaskans and visitors. The ballroom can accommodate up to 1,812 people in a banquet format. Also in downtown Anchorage is the William A. Egan Civic and Convention Center with more than 45,000 square feet for meetings and events. Upgraded in 2009, the Egan Center offers the 19,306-squarefoot Explorers Hall at street level and the 11,228-square-foot Summit Hall on the www.akbizmag.com

Alaska Railroad Depot at the Ted Stevens Anchorage International Airport, Alaska Aviation Heritage Museum, O’Malleys on the Green, Campbell Creek Science Center, Hilltop Ski Area, and Kincaid Park Chalet. The Sullivan Arena, for example, has a total square footage, with all telescoping seats retracted, of about 32,000 square feet. The facility holds 220 trade show booths with concert seating for 8,700. It is best known for hosting sports events such as Alaska Aces hockey games and specialty sporting events like the Carrs/Safeway Great Alaska Shootout basketball tournament. The Sullivan is also the location of the annual Alaska Women’s Show as well as the annual Make it Alaskan Festival. Ample parking is adjacent to the facility. In nearby Palmer, just a forty-five minute drive north of Anchorage, the Alaska State Fair offers rental space for conventions, trade shows, and smaller gatherings such as board retreats. The grounds also have outdoor electrical power and expansive lawns for outside activities. Gun collector shows and holiday bazaars are commonly booked here. Wasilla’s Curtis D. Menard Memorial Sports Center is available for large events

such as conferences, trade shows, banquets, sporting events, and concerts. Facility Manager and Events Coordinator Joan Klapperich says that depending on the timing and size of an event, space can be reserved right over the phone and doesn’t require a long lead time. A number of resort properties in Wasilla also have meeting space for rent, including the Best Western Lake Lucille Inn and Settlers Bay Lodge. Accessible by road or plane from Anchorage, Valdez has its own Convention and Civic Center perched at the edge of Prince William Sound. Built in 1982, this spacious facility offers a ballroom of more than 6,400 square feet capable of holding 903 people in its reception formation. Its theater can seat 450 people. Kodiak is another Southcentral location to consider for a uniquely Alaskan experience. Visitors not only get the thrill of approaching the Kodiak Benny Benson State Airport over Gulf of Alaska waters and arriving on a mountainous island known for the world’s largest brown bears, but they’ll also find themselves welcomed to the Kodiak Harbor Convention Center at the Best Western Kodiak Inn. The center’s largest room is 3,200 square feet and can fit up to

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lower level. Each hall can be configured into additional smaller spaces. Explorers Hall can seat 2,540 people as a theater, while Summit Hall can seat 1,400. Beer festivals, boxing, concerts, comedy shows, and dog shows are common occurrences at the Egan Center, as are more traditional meetings, expos, and conventions. Many hotels around Anchorage also rent meeting and convention space. Julie Dodds, director of conventions sales for Visit Anchorage, says the five main convention properties are the Hilton Anchorage, Hotel Captain Cook, Anchorage Marriott Downtown, Sheraton Anchorage Hotel and Spa, and Alyeska Resort. “They all have between 15,000 and 23,000 square feet of versatile meeting space,” Dodds says. The large hotel meeting spaces require two to three years advance notice for bookings. “We have a few groups that booked 2017 in 2013,” Dodds says. Many of Anchorage’s smaller hotels have meeting space also. Dodds also points out unique meeting spaces in the Anchorage area. These include the Anchorage Museum at Rasmuson Center, Sullivan Arena, Alaska Center for the Performing Arts, Alaska Native Heritage Center, Bill Sheffield

Alyeska Resort is Alaska’s favorite place to meet. Just 40 miles south of Anchorage, Alyeska offers an unmatched meeting experience without leaving home. With a 304-room luxury hotel, over 13,000 square feet of function space and dedicated catering and conference services team, Alyeska Resort will leave you inspired.

Alyeska invites corporate meeting planners for a personal property site tour. Please contact the Sales team for details at 907-754-2213.

alyeskaresort.com 800-880-3880

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December 2013 | Alaska Business Monthly

450 people. Additional space is available, as is food and beverage service catered by the Best Western Kodiak Inn. Another seaside community to schedule meetings in is Seward. The Dale Lindsey Seward Intermodal Facility is available for rent mid-September to mid-May, when it is not in use to support passenger train operations. It was remodeled in 2003 and features a 25-foot ceiling and heated concrete floors. It can hold more than 1,000 people. Other spaces for rent in Seward include the Alaska Sealife Center, the middle and high schools, and Seward Windsong Lodge, its Glacier Room accommodates up to 200 people at a time. Land’s End Resort at the end of the Homer Spit is another Alaskan favorite for conventions and other meetings. Situated right on the beach, its Quarter Deck has excellent views of Kachemak Bay for as many as 250 guests. The resort is also considered Homer’s finest accommodations. The annual Kachemak Bay Writer’s Conference is held here. Also on the Kenai Peninsula is the Kenai Visitors & Cultural Center. It has 2,700 square feet of meeting space for weddings, staff retreats, business meetings,

fundraising events, film festivals, special event parties, and board meetings. Kenai’s history of Alaska Native and Russian artifacts, educational wildlife displays, and original art by Alaskans add value to the center as a meeting venue.

Interior Fairbanks is interior Alaska’s largest city. Several modern meeting venues can be found in this historic gold rush town. Meeting facilities without lodging include the Carlson Center, nestled on the banks of the Chena River. It offers event coordination, catering, and decorating as well as technical production services and equipment. Meeting rooms total 10,000 square feet while an event arena totals 35,000 square feet. The Carlson Center advertises itself as having capabilities that “range from hockey games to concerts, trade shows to circuses, and conventions to basketball camps.” Maximum seating for a concert is more than 6,500 people. Parking is free. Additional event venues in Fairbanks without lodging include Pioneer Park, which has several meeting spaces for rent that total nearly 16,000 square feet, including an exhibit hall, a pioneer hall, and a

Alaska Business Monthly | December 2013

theater. This is Alaska’s only pioneer theme park. The Morris Thompson Cultural and Visitors Center in downtown rents its lobby, theater, classroom, conference room, and elders’ hall to those seeking meeting arrangements. Maximum capacity for the lobby, the largest space, is 200 people. The University of Alaska Museum of the North also has rental space available. Fairbanks meeting space with lodging includes 10,000 square feet at the Wedgewood Resort plus an additional 30,000 square feet at the Fountainhead Antique Auto Museum. This unique museum can cater up to 600 guests. The Westmark Fairbanks Hotel and Conference Center has 17,000 square feet of event space, including a 5,400-square-foot ballroom. The ballroom can accommodate 500 people for a reception. Other hotels offer meeting space, too, but the most unique is Chena Hot Springs Resort, sixty miles from Fairbanks and accessible by road. Besides the allure of its healing waters and aurora viewing opportunities in winter, conference attendees can visit its ice museum and eat fresh produce from its geothermal-powered greenhouse. Chena’s Activitorium can hold up to 300 people.

Southeast As the state’s capital, Juneau is no stranger to meetings. Centennial Hall Convention Center hosts everything from the usual array of conferences and corporate meetings to film festivals, fashion shows, roller derbies, and training symposia. Its combined ballrooms are over 12,000 square feet, while several meeting rooms fill out its rental options. Harrigan Centennial Hall in Sitka is a civic, convention, and visitor center that can hold 700 people in its auditorium. Additional rooms and exhibit halls can accommodate from 50 to 200 at a time. The hall is home to the Sitka Summer Music Festival and the New Archangel Dancers, a local folk dance troupe that performs Russian heritage dances live during the summer tourist season in honor of Sitka’s Russian past. For musical or dramatic events, the Sitka Performing Arts Center has seating for over 600 people and includes an adjacent room for receptions. Ketchikan’s Ted Ferry Civic Center has a 4,500-square-foot ballroom that can be reconfigured into three distinct rooms with individual sound systems and lighting controls. The center comes equipped with a www.akbizmag.com

professional kitchen, executive boardroom, and state-of-the-art technology services. Staff can assist in conference planning, too. Haines has meeting and conference space for rent at its Alaska Native Brotherhood and Alaska Native Sisterhood Hall, with reception seating for 200. The American Legion Hall in Haines has as a yearround banquet and conference facility with reception seating for 250. The American Bald Eagle Foundation Hall offers the same for 300. The community’s Chilkat Center for the Arts as well as Harriett Hall at the Southeast Alaska State Fair grounds also rent meeting and conference space. The James & Elsie Nolan Center in Wrangell offers two meeting rooms, a spacious Civic Center room and a small theater for rent. The lobby, museum, kitchen, and visitor center can also be rented for meetings, conferences, festival, retreats, and the like.

Northwest The town of Nome doesn’t typically pop up on the radar as a first choice for holding a conference, perched as it is on the far reaches of Alaska’s Seward Peninsula. It is more than five hundred air miles from Anchorage. Yet Nome does rent space for conferences, including Old St. Joe’s Hall in a refurbished church that’s on the National Register of Historic Places. In 2009, Nome’s Pioneer Hall was the chosen location for about 100 researchers to attend the Western Alaska Interdisciplinary Science Conference. Nome also has a mini convention center. Aleutians Even farther from Anchorage—about eight hundred miles—is Unalaska/Dutch Harbor on the Aleutian Chain. Yet even in this remote outpost are options for conference and meeting rentals. The Grand Aleutian Hotel has over 2,500 square feet of banquet space, and onsite catering is available. Two conference rooms, the Makushin and the Shishaldin, can each accommodate nearly 200 people for a reception. The rooms are named after nearby active volcanoes. Holding a conference, convention, meeting, or retreat in Alaska is a matter of planning ahead, making phone calls, and being flexible.  Susan Sommer writes from Eagle River. www.akbizmag.com

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2013 DIRECTORY FOR CONVENTIONS & CORPORATE TRAVEL CHAMBERS OF COMMERCE AND CONVENTION & VISITORS BUREAUS Company Company

TopExecutive Executive Top

Alaska Chamber 471 W. 36th Ave., Suite 201 Anchorage, AK 99501 Phone: 907-278-2722 Fax: 907-278-6643

Rachael Petro, Pres./CEO

Anchorage Chamber of Commerce 1016 W. Sixth Ave., Suite 303 Anchorage, AK 99501 Phone: 907-272-2401 Fax: 907-272-4117

J.J. Harrier, VP

Bethel Chamber of Commerce PO Box 329 Bethel, AK 99559 Phone: 907-543-2911 Fax: 907-543-2255

Carol Ann Willard, Pres.

Centennial Hall Convention Center 101 Egan Dr. Juneau, AK 99801 Phone: 907-586-5283 Fax: 907-586-1135

Steven Pfister, Facility Mgr.

Chugiak-Eagle River Chamber 12001 Business Blvd., Suite 108 Eagle River, AK 99577 Phone: 907-694-4702 Fax: 907-694-1205

Susan Gorski, Exec. Dir.

Cooper Landing Chamber & CVB P.O. Box 809 Cooper Landing, AK 99572 Phone: 907-595-8888 Fax: 907-595-8888

Jen Harpe

Cordova Chamber & Visitor Center PO Box 99 Cordova, AK 99574 Phone: 907-424-7260 Fax: 907-424-7259

Christa Hoover, Project Mgr.

Discover Kodiak 100 E. Marine Way, Suite 200 Kodiak, AK 99615 Phone: 907-486-4782 Fax: 907-486-6545

Chastity Starrett, Exec. Dir.

Fairbanks Convention & Visitors Bureau 101 Dunkel St., Suite 111 Fairbanks, AK 99701-4806 Phone: 907-459-3765 Fax: 907-459-3787

Deb Hickok, Pres./CEO

Greater Wasilla Chamber & CVB 415 E. Railroad Ave. Wasilla, AK 99654 Phone: 907-376-1299 Fax: 907-373-2560

Lyn Carden , CEO

GuestHouse Anchorage Inn 321 E. Fifth Ave. Anchorage, AK 99501-2632 Phone: 907-276-7226 Fax: 907-265-5164

Tammy Wanner, Gen. Mgr.

Juneau Convention & Visitors Bureau 800 Glacier Ave., Suite 201 Juneau, AK 99801 Phone: 907-586-1737 Fax: 907-586-6304

Nancy Woizeschke, Pres./CEO

Ketchikan Visitors Bureau 50 Front St., Suite 203 Ketchikan, AK 99901 Phone: 907-225-6166 Fax: 907-225-4250

Patti Mackey, Pres./CEO

King Salmon Visitor Center PO Box 298 King Salmon, AK 99613 Phone: 907-246-4250 Fax: 907-246-8550

Julia Pinnix, Visitor Services Mgr.

AK AK Estab. Estab. Empls. Empls.

Services Services

1952

We are the "Voice of Alaska" and we are here to promote a positive business environment for the entire state of Alaska, big and small businesses are all welcome.

1915

The Anchorage Chamber of Commerce is a non-profit, member-driven business organization with nearly 1,100 members representing 60,000 employees. The Anchorage Chamber serves as a resource to gain business knowledge, insight and strength as business professionals.

1987

Promoting business and supporting the community in Bethel.

1983

Established in 1983, our facility and staff cater to any meeting planners' needs. Centennial Hall Convention Center, located in downtown Juneau, is a perfect location for your next event. Whether you are looking for a facility to host a concert, convention, meeting, trade show or a festival, Centennial Hall can accommodate you!

1984

Committed to quality growth and development of the Chugiak-Eagle River Community. CER sponsorship includes the annual Bear Paw Festival (www.bearpawfestival.org). Ongoing projects include the Chief Alex Park, Town Clock, Downtown Beautification Banners and Urban Revitalization.

2002

The Cooper Landing Chamber of Commerce and Visitor Center is located next to Wildman's on the Sterling Highway as you are passing through Cooper Landing. Stop in and check out our visitor center. Whether you are looking for information on lodging, restaurants, or local activities, we can help you out!

1909

Business trade association, destination marketing, business development and transportation planning.

1984

Discover Kodiak provides destination marketing for the development of sustainable tourism on Kodiak Island and provides convention support and services for businesses and organizations choosing Kodiak for their meetings.

1977

Requests for proposal, assistance and bid presentations, familiarization trips and site visits, promotional and welcome materials, online registration and convention support services.

1976

GWCC/Business advocacy, network opportunities, printed business directory, online business directory, multiple on-line opportunities for advertising, lead referral system. WCVB: Leaders in the community are quality and quantity of services provided to our members. Your voice of the community and your partners in success.

1984

GuestHouse Anchorage Inn Conference Center is 3,000 sq. ft., perfect for business meetings & special events. At our downtown location you can expect personal service, quality accommodations & affordable rates. GuestHouse Anchorage Inn offers 130 guest rooms decorated with furnishing & amenities that you deserve.

1985

Our Convention Services Department is an invaluable liaison between meeting planners and the products and services available to them in Juneau. Visit us at www.traveljuneau.com for additional information about the products and services available through our convention sales department.

1976

Supporting the visitor industry in Ketchikan.

1986

We provide information about the surrounding region, from charter flight companies and lodges to maps. We have exhibits in the visitor center and can show a wide variety of educational films on demand. An Alaska Geographic bookstore is also on site.

facebook.com/AlaskaChamber alaskachamber.com

info@anchoragechamber.org anchoragechamber.org

bethelchamber1@alaska.com bethelakchamber.org

centennial_hall@ci.juneau.ak.us juneau.org/centennial

info@cer.org cer.org

info@cooperlandingchamber.com cooperlandingchamber.com

visitcordova@ak.net cordovachamber.com

visit@kodiak.org www.kodiak.org

info@explorefairbanks.com explorefairbanks.com

contact@wasillachamber.org wasillachamber.org

info@ghalaska.com ghalaska.com

meetinginfo@traveljuneau.com traveljuneau.com

info@meetinalaska.com meetinalaska.com

becharof@fws.gov alaskapeninsula.fws.gov

Alaska Business Monthly | December 2013

www.akbizmag.com

Company Company

Top TopExecutive Executive

Kodiak Chamber of Commerce 100 E. Marine Way, Suite 300 Kodiak, AK 99615 Phone: 907-486-5557 Fax: 907-486-7605

Trevor Brown, Exec. Dir.

Matanuska-Susitna CVB 7744 E. Visitors View Ct. Palmer, AK 99645 Phone: 907-746-5000 Fax: 907-746-2688

Bonnie Quill, Exec. Dir.

AK Estab. Empls. Empls. Estab.

Services Services

1940

The Kodiak Chamber of Commerce is a non-profit, economic development corporation dedicated to the future growth and expansion of our Kodiak Island community. The Chamber promotes development of a strong and diverse economy for the Kodiak region through active leadership and opportunities for membership involvement.

1986

We provide visitor information and meeting planner assistance in the Mat-Su Valley. Visitor center is open May through September at Mile 35.5 Parks Highway.

Morris Thompson Cultural & Visitors Center Cindy Schumaker, Exec. Dir. 101 Dunkel St., Suite 210 Fairbanks, AK 99701 info@morristhompsoncenter.org Phone: 907-459-3700 Fax: 907-459-3702 morristhompsoncenter.org

2008

Along the Chena River in Downtown Fairbanks, the Center can accommodate a variety of events. World-class exhibits, cultural and natural history films in 100 seat hi-definition theatre, Alaska Native music, dance, storytelling, artist demonstrations and "Taste of Alaska" meals add a unique flair to meetings or receptions.

Nome Chamber of Commerce PO Box 250 Nome, AK 99762 Phone: 907-443-3879 Fax: 907-443-5832

Barb Nickels, Exec. Dir.

1981

The Nome Chamber of Commerce Meetings and Conventions Division offer services for a fee to statewide organizations wishing to host their events in Nome. Services available range from invitations, set up, catering, promotion, public relations, venue selection, budget development, and airline and lodging reservations.

Petersburg Chamber of Commerce PO Box 649 Petersburg, AK 99833 Phone: 907-772-3646 Fax: 907-772-2453

Sally Dwyer, Exec. Dir.

1930

Can assist in arranging your conference or visit information in Petersburg, the heart of the Tongas National Rainforest. Come frolic with the whales or share a dance with a Viking.

Prince of Wales Island Chamber PO Box 490 Klawock, AK 99925 Phone: 907-755-2626 Fax: 907-755-2627

Janice Bush, Pres.

1988

Working for businesses to improve regional economic vitality, for citizens to improve quality of life, and for visitors to enhance experiences.

Seward Chamber & CVB PO Box 749 Seward, AK 99664 Phone: 907-224-8051 Fax: 907-224-5353

Cindy Clock, Exec. Dir.

1951

The Seward Chamber operates Seward's year-round Visitor Center and provides event and meeting support to organizations and planners.

Sitka Convention & Visitors Bureau 303 Lincoln St., Suite 4 Sitka, AK 99835 Phone: 907-747-5940 Fax: 907-747-3739

Tonia Rioux, Exec. Dir.

1980

Meeting planning assistance, liaison between local businesses, service providers and event planners. Promotional assistance.

Skagway Convention & Visitors Bureau PO Box 1029 Skagway, AK 99840 Phone: 907-983-2854 Fax: 907-983-3854

Buckwheat Donahue, Exec. Dir.

1981

The CVB of Skagway does the marketing for the municipality, is its media representative and manages the town's Visitor Center. We can easily accommodate up to 100 people for conventions etc. year round.

Soldotna Chamber & Visitor Center 44790 Sterling Hwy. Soldotna, AK 99669 Phone: 907-262-9814 Fax: 907-262-3566

Michelle Glaves, Exec. Dir.

1959

Soldotna Chamber of Commerce and Visitor Information Center. Our mission is to provide enhanced success of our membership and serve as a driver in developing Soldotna's future.

Talkeetna Chamber of Commerce PO Box 334 Talkeetna, AK 99676 Phone: 907-733-2330 Fax: 907-733-3940

Beth Valentine, Pres.

1970

All-volunteer nonprofit with 80 members. Supporting businesses and promoting activities in the Upper Susitna Valley. Virtual website with business directory, calendar of events, activities, visitor information, history, maps, and more.

Ted Ferry Civic Center 888 Venetia Ave. Ketchikan, AK 99901 Phone: 907-228-5655 Fax: 247-3414

Rhonda Bolling, Facility Manager

1994

Premier meeting and events facility in Ketchikan.

Tok Chamber of Commerce PO Box 389 Tok, AK 99780 Phone: 907-883-5775 Fax: 907-883-5773

John Rusyniak, Pres.

1980

Help the traveling public with information about Alaska and Canada. Direct them to member businesses. Obtain the latest road and weather information for travelers and help them make reservations around the state and the Yukon.

Valdez Convention & Civic Center PO Box 1849 Valdez, AK 99686 Phone: 907-835-4440 Fax: 907-835-2472

Pamela Lunt, Facility Mgr.

1982

Ballroom, conference room and performing arts theater available for rent. The theater is also the community movie theater, playing current movies in digital and digital 3D.

Visit Anchorage 524 W. Fourth Ave. Anchorage, AK 99501 Phone: 907-276-4118 Fax: 907-278-5559

Julie Saupe, Pres./CEO

1975

Attracts and serves visitors to Anchorage, connecting travelers, meeting planners and convention delegates with attractions, services, amenities, and Alaska businesses. Dedicated to community growth through strategic development.

Wrangell Convention & Visitor Bureau PO Box 1350 Wrangell, AK 99929 Phone: 907-874-2829 Fax: 907-874-3952

Carol Rushmore, Econ. Dev. Dir.

1985

Wrangell CVB provides information about the community, the Tongass National Forest, and all the things to see and do when visiting the Wrangell area. Stop by the Visitor Center, located in the Nolan Center which also houses the Wrangell Museum, for brochures and information while in town.

www.akbizmag.com

chamber@kodiak.org kodiakchamber.org

info@alaskavisit.com alaskavisit.com

director@nomechamber.com visitnomealaska.com

pcoc@alaska.com petersburg.org

info@princeofwalescoc.org princeofwalescoc.org

chamber@seward.net seward.com

scvb@sitka.org sitka.org

info@skagway.com skagway.com

info@soldotnachamber.com soldotnachamber.com

info@talkeetnachamber.org talkeetnachamber.org

tfcc@city.ketchikan.ak.us city.ketchikan.ak.us

info@tokalaskainfo.com tokalaskainfo.com

plunt@ci.valdez.ak.us ci.valdez.ak.us

info@anchorage.net Anchorage.net

wrangell@wrangell.com wrangellalaska.org

December 2013 | Alaska Business Monthly

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013 DIRECTORY FOR CONVENTIONS & CORPORATE TRAVEL

CHAMBERS OF COMMERCE AND CONVENTION & VISITORS BUREAUS

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013

DIRECTORY FOR CONVENTIONS & CORPORATE TRAVEL HOTELS, LODGING & VENUES Company Company

TopExecutive Executive Top

Alaska Aviation Heritage Museum 4721 Aircraft Dr. Anchorage, AK 99502 Phone: 907-248-5325 Fax: 907-248-6391

Nicole Schuh, Ops Mgr.

Alaska Native Heritage Center 8800 Heritage Center Dr. Anchorage, AK 99504 Phone: 907-330-8000 Fax: 907-330-8030

Annette Evans Smith, VP

Alaska SeaLife Center PO Box 1329 Seward, AK 99664 Phone: 907-224-6300 Fax: 907-224-6320

Tara Riemer Jones, Ph.D., Pres./CEO

Alaska Sunset View Resort PO Box 521402 Big Lake, AK 99652 Phone: 907-892-8885 Fax: 907-892-8887

Kathleen Glines, Owner/Mgr.

Alaska's Capital Inn 113 W. Fifth St. Juneau, AK 99801 Phone: 907-586-6507 Fax: 907-586-6508

Linda Wendeborn, Owner/Innkeeper

Alex Hotel & Suites 4615 Spenard Rd. Anchorage, AK 99517 Phone: 907-243-3131 Fax: 907-249-4917

Myung Won, Gen. Mgr.

Alta House Vacation Rentals & Gifts PO Box 1303 Girdwood, AK 99587 Phone: 907-770-0482 Fax: 907-783-9033

Tanya Lee, Owner

Alyeska Resort PO Box 249 Girdwood, AK 99587 Phone: 907-754-1111 Fax: 907-754-2290

Mark Weakland, VP/Hotel GM

Anchorage Golf Course 9138 Arlon St., Suite A3-152 Anchorage, AK 99507 Phone: 907-522-3363 Fax: 907-522-3326

Rich Sayers, Gen. Mgr.

Anchorage Historic Hotel 330 E St. Anchorage, AK 99501 Phone: 907-272-4553 Fax: 907-277-4483

Terri Russi, Gen. Mgr.

Aspen Hotel Soldotna 326 Binkley Cir. Soldotna, AK 99669 Phone: 907-260-7736 Fax: 907-260-7786

Pat Wallace, VP

Aspen Suites Hotel Anchorage 100 E. Tudor Rd. Anchorage, AK 99503 Phone: 907-770-3400 Fax: 907-770-3425

Pat Wallace, VP

Aspen Suites Hotel Juneau 8400 Airport Blvd. Juneau, AK 99801 Phone: 907-500-7700 Fax: 907-500-7733

Pat Wallace, VP

Aspen Suites Hotel Kenai 10431 Kenai Spur Hwy. Kenai, AK 99611 Phone: 907-283-2272 Fax: 907-283-2278

Pat Wallace, VP

Aurora Inn PO Box 1008 Nome, AK 99762 Phone: 907-443-3838 Fax: 907-443-6380

Tim Towarak, Pres.

Bear Lodge 325 Wedgewood Dr. Fairbanks, AK 99701 Phone: 907-450-2142 Fax: 907-451-6376

Shane Arnold, Gen. Mgr.

AK AK Estab. Estab. Empls. Empls.

Services Services

1988

Museum available for tours, school groups and available to rent for private events. Rental of 737 Jet for events. Flight simulator included with admission. Two theaters, gift store, over 20 vintage aircraft in four hangars plus restoration hangar. Can have the caterer of your choice. Great space for meetings.

1999

The Alaska Native Heritage Center offers a unique and quiet atmosphere to host a business meeting, conference, luncheon or dinner reception. Guests can experience Alaska's indigenous culture with visits to the Hall of Cultures, tours of six traditional village sites, and native dance or games performances.

1998

While primarily a marine research and wildlife rehabilitation facility, the ASLC operates the only major aquarium in Alaska. Businesses and individuals always enjoy this unique venue for events and meetings, and our staff members are dedicated to providing excellent service and assistance.

1997

Lakefront Resort with "Boathouse Restaurant" on site. Unique, private accommodations to make your business retreat, family vacation, reunion, or wedding a special affair to remember for a lifetime. Big Lake Alaska's Year Round Play Ground. Open year-round.

2001

Restored gold rush era home offering the finest overnight accommodations and an elegant bed and breakfast experience in historic downtown Juneau.

1982

122 completely renovated non-smoking rooms. 24 hour airport shuttle, (also serves railroad station and shopping in downtown area and midtown upon availability). Complimentary hot continental breakfast, Free WiFi, Business center, walk in freezer, and Free Park and Fly.

2003

A great hotel alternative for the business traveler, Alta House Vacation Rentals offers a variety of casual yet sophisticated accommodations with full kitchens, saunas and private hot tubs. The second largest inventory in Girdwood, we have cozy cabins, colorful condos and private chalets and houses. Also offering free concierge services.

1959

650

Located 40 miles from Anchorage, Alyeska Resort, featuring the 304 room Hotel Alyeska, is your luxury base camp for summer and winter. Alyeska Resort stands out during ski season with 650" of average snowfall annually and the longest continuous double black diamond ski run in North America.

1987

100

Anchorage Golf Course is the most attractive destination for golf in Alaska. The 18 hole course is challenging and beautiful with 6,600 yards of rolling, tree-lined fairways, to well-guarded undulating greens. Anchorage Golf Course is a public course that offers putting and chipping greens, as well as the only grass driving range in Anchorage.

1916

Classic Charm, Modern Boutique. Tucked in the heart of downtown is a gem of a hotel that has welcomed its guests with grace and elegance for 100 years. Exquisitely restored, the Historic Anchorage Hotel offers superior service and luxury accommodations in a boutique setting-at a price you can afford.

2002

Aspen Hotel Soldotna offers 63 beautifully appointed guest rooms and suites. Conference room, wireless Internet, business E-center, indoor swimming pool and spa, fitness room, continental breakfast, access to the Kenai River, Alaska Air miles with every stay. Stay with us, you will be glad that you did.

2012

All rooms have full kitchenette. With every stay you receive Alaska Airline Miles, you will be amazed by the size of our rooms. We are located in midtown Anchorage, next to Starbucks. The longer you stay the less you pay, stay a night, a month or longer.

2011

In-room microwave, refrigerator, coffee maker and DVD player, guest laundry room, wireless Internet, fitness room, E-center, conference & meeting room, Alaska Airlines miles with every stay, all rooms have a nice kitchenette, you will be amazed by the size of our rooms. Our hotel is located near the airport; stay with us you will be glad you did.

2008

Aspen Suites Hotel offers 78 roomy guest suites, all that feature a kitchen complete with everything you will need to create a meal. Wireless Internet, business E-center, fitness room, Alaska Air Miles with every stay. Located just 1/4 mile from Kenai Airport, close to shopping and restaurants.

1999

Full-service hotel.

1996

For quiet, comfort & beauty, escape to Bear Lodge situated on a 105 acre resort between a 75 acre wildlife reserve & 2,000 acre waterfowl refuge with spacious guestrooms & exceptional guest service. Guests enjoy the inviting atmosphere at the restaurant, lounge & the Internet Cafe.Complimentary internet access & airport shuttle.

info@alaskaairmuseum.org alaskaairmuseum.org

info@alaskanative.net alaskanative.net

visitaslc@alaskasealife.org alaskasealife.org

glines@alaskasunsetviewresort.com alaskasunsetviewresort.com

innkeeper@alaskacapitalinn.com alaskacapitalinn.com

info@alexhotelalaska.com alexhotelalaska.com

tanya@thealtahouse.com AltaHouseVacations.com

info@alyeskaresort.com alyeskaresort.com

golf@anchoragegolfcourse.com anchoragegolfcourse.com

anchoragehotel@alaska.com historicanchoragehotel.com

info@aspenhotelsak.com aspenhotelsak.com

info@alaskahotelsak.com aspenhotelsak.com

info@aspenhotelsak.com aspenhotelsak.com

aurorainn@gci.net aurorainnome.com

hotels@fdifairbanks.com FountainheadHotels.com

Alaska Business Monthly | December 2013

www.akbizmag.com

AK Estab. Empls. Empls. Estab.

Company Company

Top TopExecutive Executive

Best Western Kodiak Inn & Conv. Cntr. 236 W. Rezanof Dr. Kodiak, AK 99615 Phone: 907-486-5712 Fax: 907-486-3430

John Johnson, Pres./Owner

Best Western Lake Lucille Inn 1300 W. Lake Lucille Dr. Wasilla, AK 99654 Phone: 907-373-1776 Fax: 907-376-6199

Carolyn Albersen, Gen. Mgr.

Best Western PLUS Landing Hotel 3434 Tongass Ave. Ketchikan, AK 99901 Phone: 907-225-5166 Fax: 907-225-6900

Linda Peters, Gen. Mgr.

Bridgewater Hotel 723 First Ave. Fairbanks, AK 99701 Phone: 907-456-3642 Fax: 907-451-6376

Buzzy Chui, Gen. Mgr.

Centennial Hall Convention Center 101 Egan Dr. Juneau, AK 99801 Phone: 907-586-5283 Fax: 907-586-1135

Steven Pfister, Facility Mgr.

Clarion Suites Downtown 1110 W. Eighth Ave. Anchorage, AK 99501 Phone: 907-222-5005 Fax: 907-929-6493

Barbara Swenson, Gen. Mgr.

Copper River Princess Wilderness Lodge 1 Brenwick Craig Rd. Copper Center, AK 99573 Phone: 907-822-4000 Fax: 907-822-4044

Charlie Ball, Pres.

Courtyard Anchorage Airport 4901 Spenard Rd. Anchorage, AK 99517 Phone: 907-245-0322 Fax: 907-248-1886

Myrna Green, Gen. Mgr.

Services Services

1997

The Best Western Kodiak Inn & Convention Center with Chart Room Restaurant & Lounge on site. The Kodiak Harbor Convention Center has three rooms, the largest holding up to 400 people. Full food and liquor catering is available. Hotel guest amenities include a free hot breakfast, free WiFi, a fitness center and hot tub.

2000

Hotels and motels.

1986

Hotel, restaurant, lounge and catering facility. Luxurious north court expansion with banquet facilities. Complimentary shuttle service within city limits, to and from airport ferry terminal (KTN side) and Alaska Marine Hwy. Terminal directly across from the hotel, 6 a.m. to 10 p.m. Exercise facility, guest laundry, free Wi-Fi, pet friendly.

1992

Alaska's genuine northern hospitality can be found at Bridgewater Hotel. In the heart of downtown Fairbanks overlooking the Chena River-from the hearty breakfast buffet to the exceptional guest service, business travelers like the Bridgewater's comfortable atmosphere-complimentary wireless internet & airport shuttle service-perfect!

1983

1999

All-suite hotel, free shuttle, complimentary breakfast buffet, free parking and free wireless Internet.

2002

Featuring spectacular mountain views and breathtaking scenery of Wrangell-St. Elias National Park, the Copper River Princess Wilderness Lodge is the ideal location for your next Alaska stay!

1997

Redesigned lobby with coffee and cocktail bar and media pods. The Courtyard makes it easier to be on the road with a microwave, mini-fridge, coffee-maker, pool, whirlpool, exercise room, a well lit desk, ergonomic chair and wireless; plus it's close to the airport. Choose one king or two double beds. Complimentary airport shuttle.

info@kodiakinn.com kodiakinn.com

info@bestwesternlakelucilleinn.com bestwesternlakelucilleinn.com

bwlanding@kpunet.net landinghotel.com

hotels@fdifairbanks.com fountainheadhotels.com

centennial_hall@ci.juneau.ak.us juneau.org/centennial

clarionsales@chenegahotels.com clarionsuitesak.com

aklodges@princesstours.com princesslodges.com

hotelreservations@nmsusa.com marriott.com/anccy

BREAKFAST

CONNECTION

ake the Hotel Captain Cook a part of your Anchorage tradition and take pleasure in an upscale experience for less than you might think. Ask for the Breakfast Connection and enjoy a deluxe room, full access to our exclusive athletic club, a daily $20 CafĂŠ breakfast credit, complimentary in-room Wi-Fi and free onsite self-parking.

captaincook.com

www.akbizmag.com

| 939 W. 5 t h a v e . | R e s e RRvat i o n s

800.843.1950

December 2013 | Alaska Business Monthly

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013 DIRECTORY FOR CONVENTIONS & CORPORATE TRAVEL

HOTELS, LODGING & VENUES

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013

DIRECTORY FOR CONVENTIONS & CORPORATE TRAVEL HOTELS, LODGING & VENUES Company Company

Top TopExecutive Executive

Dena'ina Civic and Convention Center 600 W. Seventh Ave. Anchorage, AK 99501 Phone: 907-263-2850 Fax: 907-644-2842

Greg Spears, Gen. Mgr.

Denali Princess Wilderness Lodge Mile 238.5 George Parks Hwy. Denali National Park, AK 99755 Phone: 907-683-2282 Fax: 907-683-2545

Charlie Ball, Pres.

Dimond Center Hotel 700 E. Dimond Blvd. Anchorage, AK 99515 Phone: 907-770-5000 Fax: 907-770-5001

Joe Merrill, Gen. Mgr.

Driftwood Lodge 435 Willoughby Ave. Juneau, AK 99801 Phone: 907-586-2280 Fax: 907-586-1034

Frederick Kasnick, Pres.

Egan Civic & Convention Center 555 W. Fifth Ave. Anchorage, AK 99501 Phone: 907-263-2800 Fax: 907-263-2858

Greg Spears, Gen. Mgr.

Embassy Suites 600 E. Benson Blvd. Anchorage, AK 99503 Phone: 907-332-7000 Fax: 907-332-7001

Bill Remmer, Gen. Mgr.

Fairbanks Princess Riverside Lodge 4477 Pikes Landing Rd. Fairbanks, AK 99709 Phone: 907-455-4477 Fax: 907-455-4476

Charlie Ball, Pres.

Fairfield Inn & Suites 5060 A St. Anchorage, AK 99503 Phone: 907-222-9000 Fax: 907-222-7611

Diane Bates, Gen. Mgr.

Fountainhead Hotels Fairbanks 1501 Queens Way HQ Fairbanks, AK 99701 Phone: 907-456-3642 Fax: 907-451-6376

Becky Kunkle, Reservations Mgr.

Goldbelt Hotel Juneau 51 Egan Dr. Juneau, AK 99801 Phone: 907-586-6900 Fax: 907-463-3567

David Malone, Mgr.

GuestHouse Anchorage Inn 321 E. Fifth Ave. Anchorage, AK 99501-2632 Phone: 907-276-7226 Fax: 907-265-5164

Tammy Wanner, Gen. Mgr.

Hampton Inn 4301 Credit Union Dr. Anchorage, AK 99503 Phone: 907-550-7000 Fax: 907-561-7330

Andrew Farrar, Gen. Mgr.

Harrigan Centennial Hall 330 Harbor Dr. Sitka, AK 99835 Phone: 907-747-3225 Fax: 907-747-8495

Don Kluting, Bldg. Admin.

Hilton Anchorage 500 W. Third Ave. Anchorage, AK 99501 Phone: 907-272-7411 Fax: 907-265-7175

Scott Doonan, Gen. Mgr.

Hilton Garden Inn 4555 Union Square Dr. Anchorage, AK 99503 Phone: 907-729-7000 Fax: 907-729-8000

Erik Mendoza, Gen. Mgr.

Holiday Inn Express Anchorage 4411 Spenard Rd. Anchorage, AK 99517 Phone: 907-248-8848 Fax: 907-248-8847

Tia Lewis, Gen. Mgr.

AK AK Estab. Estab. Empls. Empls.

Services Services

2008

Rental space for luncheons, dinners, breakfasts, conventions, meetings, seminars, trade shows, sporting events - and weddings! In-house catering by Savor Alaska and our own Executive Chef. Choose an existing menu or work with our experts to develop your own. State-of-the-art A/V, dance floors, outdoor Terrace & stunning Chugach Mountain views.

2000

487

Located one mile from the entrance to Denali National Park, Denali Princess Wilderness Lodge is the ideal spot to relax and savor the exquisite Denali landscape.

2002

The Dimond Center Hotel provides a unique luxury and competitive pricing . Owned and managed by the Seldovia Native Association we understand the importance of good hospitality and making our guest feel comfortable and a part of our family.

1962

Hotel.

1984

Rental space for luncheons, dinners, breakfasts, conventions, meetings, seminars, trade shows, exhibits, sporting events. In-house catering by Savor Alaska featuring our own Executive Chef and expert Culinary team. Choose a menu or have Chef develop one with you. State-of-the-art A/V, stages, dance floors, flexible, affordable and convenient.

2008

Deluxe full service all suites hotel, Pi Restaurant and Bar, Pi Market and 2,500 square feet of meeting space. Beautiful pool area with hot tub, and workout facility. Offers shuttle services for all guests.

1993

260

Located minutes from the airport, Fairbanks Princess Riverside Lodge offers a free airport shuttle, free wireless Internet access, space for large events, and great dining options. Landscaped grounds and a deck extending to the water's edge take advantage of the Lodge's Chena River setting.

2004

Hotel accommodations.

1979

200

Four distinct Fairbanks hotels-Wedgewood Resort offers 1 & 2 bedroom residential-style suites. Bear Lodge is ideal for summer lodging. Bridgewater Hotel is downtown & is within walking distance to restaurants, shopping & the visitor's center. Sophie Station Suites is known for exceptional service, spacious suites & ideal location.

info@anchorageconventioncenters.com anchorageconventioncenters.com

aklodges@princesstours.com princesslodges.com

reservations@dimondcenterhotel.com dimondcenterhotel.com

driftwood@gci.net driftwoodalaska.com

info@anchorageconventioncenters.com anchorageconventioncenters.com

Mike.Lessley@hilton.com embassysuitesanchorage.com

aklodges@princesstours.com princesslodges.com

dbates@thehotelgroup.com fairfieldinnanchorage.com

hotels@fdifairbanks.com fountainheadhotels.com 1997

mackenzie.byrd@goldbelt.com goldbelthotel.com

2,050 Juneau's premier downtown waterfront hotel. Newly renovated with complimentary airport transportation, Wi-Fi, exercise facility & parking. Meeting/hospitality rooms up to 50 people, restaurant & business center. Next door to Centennial Hall, short walk to State capital, museums, cruise docks, restaurants & shopping.

1984

Services: Whether traveling for business or pleasure you can expect personal service, quality accommodations and affordable rates. The Downtown Anchorage Days Inn offers 130 rooms, each decorated with furnishing and amenities you expect from expensive lodging chains.

1997

Conveniently located in Midtown with complimentary parking and shuttle service. The Hampton Inn also offers catering options as well as special guest-room rates, meeting rooms and catering options are available on site.

1967

Ocean-front location with breathtaking view, centrally located. Harrigan Centennial Hall is an 18,000 sq. ft. Civic, Convention, and Visitor Center. Experienced in conventions, symposiums, conferences, and professional meetings. Independent caterers available to work in our commercial on-site kitchen.

1927

150

In-room safe, 24-hour business center, Starbuck's coffee kiosk, and complimentary health spa.

2003

125 guest rooms with over 2,000 square feet of flexible meeting space. Full-service restaurant and bar, fitness center, and pool. We provide guests with a business center, complimentary high speed Internet service throughout the hotel. Local complimentary shuttle service from airport and 3-mile radius.

1999

Hotel accommodations.

info@ghalaska.com ghalaska.com

mike.lessley@hilton.com hamptonanchorage.com

donk@cityofsitka.com cityofsitka.com

hiltonanchorage.com

deedee.lewis@hilton.com anchoragehgi.com

reservations@hieanchorage.com hieanchorage.com

Alaska Business Monthly | December 2013

www.akbizmag.com

Company Company

TopExecutive Executive Top

Homewood Suites by Hilton 101 W. 48th Ave. Anchorage, AK 99503 Phone: 907-762-7000 Fax: 907-762-8000

Tracy Brown, Gen. Mgr.

Hotel Captain Cook 939 W. Fifth Ave. Anchorage, AK 99501-2019 Phone: 907-276-6000 Fax: 907-343-2298

Walter Hickel Jr., Pres.

Hotel North Pole 449 N. Santa Claus Ln. North Pole, AK 99705 Phone: 907-488-4800 Fax: 907-488-4816

Wanda Rubio, Mgr.

Hotel Seward & Ms Gene's Place PO Box 2288 Seward, AK 99664-2288 Phone: 907-224-8001 Fax: 907-224-3112

Mary Kulstad, Innkeeper

Inlet Tower Hotel 1200 L St. Anchorage, AK 99501 Phone: 907-276-0110 Fax: 907-222-8760

Scott Lee, Gen. Mgr.

Inn at Whittier PO Box 773 Whittier, AK 99693 Phone: 907-472-3200 Fax: 907-472-3201

Seth Cottrell, Gen. Mgr.

James & Elsie Nolan Center PO Box 1050 Wrangell, AK 99929 Phone: 907-874-3699 Fax: 907-874-3785

Terri Henson, Dir. of Conventions

Juneau Airport Travelodge Hotel 9200 Glacier Hwy. Juneau, AK 99801-9315 Phone: 907-789-9700 Fax: 907-789-1969

Lynda Foreman, Gen. Mgr.

www.akbizmag.com

AK AK Estab. Estab. Empls. Empls.

Services Services

2004

All suites, complimentary breakfast daily, evening manager reception M-TH, complimentary airport shuttle, free parking, 1800 square-foot meeting space.

1964

350

Private athletic club, four restaurants and coffee bar, 10,000-bottle wine cellar, fourdiamond dining, 546 rooms including 96 suites.

2009

We offer lodging for meetings and or social events or for any occasion.

1988

Alaskan family owned & operated boutique hotel & restaurant. Book a Wes's Fishing adventure; warm & friendly staff help with your travel needs, making your stay a memorable one! In historic downtown Seward, adjacent to the Alaska SeaLife Center. Pillowtop beds, cozy comforters, great views, unique wildlife & history display.

1959

Hotels, motels and apartments.

2004

The Inn at Whittier is a beautiful building sitting right on the waters edge in Whittier, Alaska. It is a great place for retreats and meetings. We have 25 guest rooms, a restaurant and bar as well as a meeting room overlooking the water. Catering is available for your group and we do offer discounts on rooms for large groups.

2004

We are a full service waterfront meeting facility that gives personalized service to any size meeting. We work directly with the visitors bureau and local businesses to cover all your needs before, during and after the meeting. Make it more than a meeting, make it a memory.

1986

Full service non-smoking hotel, restaurant and lounge.

Mike.Lessley@hilton.com homewoodanchorage.com

info@captaincook.com captaincook.com

info@hotelnorthpole.com hotelnorthpole.com

hotelseward@gci.net hotelsewardalaska.com

manager@inlettower.com inlettower.com

info@innatwhittier.com innatwhittier.com

nolancenter@wrangellalaska.org wrangellalaska.org

gmtravelodge@gci.net travelodge.com/hotel/09476

December 2013 | Alaska Business Monthly

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013 DIRECTORY FOR CONVENTIONS & CORPORATE TRAVEL

HOTELS, LODGING & VENUES

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013

DIRECTORY FOR CONVENTIONS & CORPORATE TRAVEL HOTELS, LODGING & VENUES Company Company

TopExecutive Executive Top

Kenai Princess Wilderness Lodge 17245 Frontier Cir. Cooper Landing, AK 99572 Phone: 907-595-1425 Fax: 907-595-1424

Charlie Ball, Pres.

Kennicott Glacier Lodge No. 15 Millsite Kennicott, AK 99588 Phone: 907-258-2350 Fax: 907-248-7975

Richard Kirkwood, Pres.

Land's End Resort 4786 Homer Spit Rd. Homer, AK 99603 Phone: 907-235-0400 Fax: 907-235-0420

Mike Dye, CEO

Long House Alaskan Hotel 4335 Wisconsin St. Anchorage, AK 99517 Phone: 907-243-2133 Fax: 907-243-6060

Terry Latham, Owner

Ma Johnson Hotel/McCarthy Lodge Box MXY McCarthy, AK 99588 Phone: 907-554-4402

Neil Darish, COO

Microtel Inn & Suites 5205 Northwood Dr. Anchorage, AK 99517 Phone: 907-245-5002 Fax: 907-245-5030

Teresa Peterson, Gen. Mgr.

Millennium Alaskan Hotel 4800 Spenard Rd. Anchorage, AK 99517-3236 Phone: 907-243-2300 Fax: 907-243-8815

Carol Fraser, Gen. Mgr.

Motel 6 5000 A St. Anchorage, AK 99503 Phone: 907-677-8000 Fax: 907-677-8640

Claudia Abrams

Mt. McKinley Princess Wilderness Lodge Mile 133 Parks Hwy. Denali State Park, AK 99683 Phone: 907-733-2900 Fax: 907-733-2922

Charlie Ball, Pres.

Nullagvik Hotel PO Box 336 Kotzebue, AK 99752 Phone: 907-442-3331 Fax: 907-442-3340

Lisa Wright, Gen. Mgr.

O'Malley's on the Green 9138 Arlon St., Suite A-3-152 Anchorage, AK 99507 Phone: 907-522-3324 Fax: 907-522-3326

Rich Sayers, Gen. Mgr.

Parkwood Inn 4455 Juneau St. Anchorage, AK 99503 Phone: 907-563-3590 Fax: 907-563-5560

Randy Comer, Managing Partner

Pike's Waterfront Lodge 1850 Hoselton Rd. Fairbanks, AK 99709 Phone: 907-456-4500 Fax: 907-456-4515

Patty Weaver, Gen. Mgr.

Quality Suites Convention Center 325 W. Eighth Ave. Anchorage, AK 99501 Phone: 907-274-1000 Fax: 907-274-3016

Barbara Swenson, Gen. Mgr.

Residence Inn Anchorage Midtown 1025 E. 35th Ave. Anchorage, AK 99508 Phone: 907-563-9844 Fax: 907-563-9636

Melinda Calderon, Gen. Mgr.

Settlers Bay Lodge Inc. PO Box 877868 Wasilla, AK 99687 Phone: 907-357-5678 Fax: 907-357-5708

Hans & Sony Schibalski, Owners

AK AK Estab. Estab. Empls. Empls.

Services Services

1999

110

1986

Full-service wilderness lodge and restaurant in the Wrangell-St. Elias National Park.

1958

Oceanfront resort, spa, restaurant and special events.

1996

Offering the traveling public quality and comfort. Airport location, complimentary continental breakfast, walk in freezer, complimentary Wi-Fi, courtesy shuttle.

2001

Hotels and motels; food and beverage; retail stores.

1997

Hotel accommodations.

1986

149

A wilderness lodge in the heart of the city, newly remodeled with 6255 sq. ft. of event space and a restaurant, bar, and deck overlooking scenic Lake Spenard. 248 deluxe guest rooms with fitness center, tour desk, shuttle service, and more. One mile from airport, 10 minutes from downtown Anchorage.

2004

Hotel accommodations.

1997

292

This comfy Alaska lodge invites the ultimate relaxation experience. Each of the guest rooms is nestled peacefully on a hillside in this wilderness getaway. Relax in comfort with amenities like three restaurants, bar and lounge, complimentary wireless internet and knowledgeable tour desk.

2011

Experience the Arctic in comfort and style at the new Nullagvik Hotel in Kotzebue. Located 26 miles north of the Arctic Circle, the hotel features fresh design, comfortable guest rooms, modern observation and exercise rooms, a cultural tour and a full-service restaurant that offers delicious food and fantastic views of the Sound.

1987

100

We are a full service establishment operating as a seasonal restaurant and bar from May to October and hosting special events and meetings year round. During the golf season we operate a snack shop and beverage carts for the golf course.

1972

Hotel accommodations with 50 studio suites, fully-functional kitchens, pets welcome with room availability, competitive rates, near hospitals and university.

2000

Continental breakfast included off-season. Aveda amenities, individual room air conditioning and heating, coin-operated laundry and free business center. Free Wi-Fi. Flat screen television, newly remodeled rooms; green program.

1997

All suites non-smoking, downtown hotel. Known for our free amenities like airport shuttle, full breakfast, Internet, parking, fitness center, and pool. This is the perfect spot to stay if you are taking in events at the convention center or PAC.

1999

Newly redesigned lobby, studios and eating areas. Choose from studio, one and two bedroom suites with fully equipped kitchens (microwave, stove, dishwasher and refrigerator), desk, pull-out sofa bed, wireless, and voice mail. Enjoy complimentary breakfast buffet and guest reception (M-TH), exercise room, pool and spa. Pets OK.

2008

Fine dining restaurant and lounge with banquet facilities for 250 people. Specialized in weddings becoming a wedding destination facility.

aklodges@princesstours.com princesslodges.com

Kenai Princess Wilderness Lodge was designed for the utmost in comfort and relaxation. Vaulted ceilings, cozy sitting areas with wood-burning stoves and private porches help make any occasion memorable. The perfect mix of tranquility and adventure characterizes your experience at this Alaska Lodge.

info@kennicottlodge.com kennicottlodge.com

lesales@alaska.net lands-end-resort.com

tlathamlonghousehotel@gci.net longhousehotel.com

help@mccarthylodge.com mccarthylodge.com

MICROTELanchorage.com

anchorage@millenniumhotels.com millenniumhotels.com/anchorage

reservations@motel6anchorage.com motel6anchorage.com

aklodges@princesstours.com princesslodges.com

hotelreservations@nmsusa.com nullagvikhotel.com

clewis@anchoragegolfcourse.com omalleysonthegreen.com

reservations@parkwoodinn.net parkwoodinn.webs.com

info@pikeslodge.com pikeslodge.com

clarionsales@chenegahotels.com qualitysuitesak.com

hotelreservations@nmsusa.com marriott.com/ancri

contact@settlersbaylodge.com settlersbaylodge.com

Alaska Business Monthly | December 2013

www.akbizmag.com

Company Company

TopExecutive Executive Top

Seward Windsong Lodge 509 W. Fourth Ave. Anchorage, AK 99501 Phone: 877-258-6877 Fax: 907-224-7118

Nick Hammond, Gen. Mgr.

Sheraton Anchorage Hotel & Spa 401 E. Sixth Ave. Anchorage, AK 99501 Phone: 907-276-8700 Fax: 907-343-3145

Jon Kranock, Gen. Mgr.

Sophie Station Suites 1717 University Ave. S. Fairbanks, AK 99709 Phone: 907-479-3650 Fax: 907-479-7951

Cathy Schultz, Gen. Mgr.

SpringHill Suites Anchorage Midtown 3401 A St. Anchorage, AK 99503 Phone: 907-562-3247 Fax: 907-562-3250

Pam Morgan, Gen. Mgr.

SpringHill Suites Fairbanks 575 First Ave. Fairbanks, AK 99701 Phone: 907-451-6552 Fax: 907-451-6553

Karren Pearson, Gen. Mgr.

SpringHill Suites University Lake 4050 University Lake Dr. Anchorage, AK 99508 Phone: 907-751-6300 Fax: 907-751-6399

Lawana Johnson, Gen. Mgr.

Talkeetna Alaskan Lodge PO Box 727 Talkeetna, AK 99676 Phone: 877-258-6877 Fax: 907-733-9545

Chris Scheffer, Gen. Mgr.

Ted Ferry Civic Center 888 Venetia Ave. Ketchikan, AK 99901 Phone: 907-228-5655 Fax: 247-3414

Rhonda Bolling, Facility Manager

www.akbizmag.com

AK AK Estab. Estab. Empls. Empls.

Services Services

1997

114

Seward Windsong Lodge can serve as the perfect location for your next meeting event. Our glacier valley setting will fuel creativity, encourage team building and inspire ideas. Offering on-site Internet access, fine meal service and a professional staff eager to help your event succeed.

1979

150

Authentic Alaskan Hotel, crisp comfortable rooms, 42-inch TVs, mini refrigerators. Luxurious day spa, meeting space, catering services, event planning, weddings. Museum Quality Alaskan Native Art.

1984

Sophie Station Suites-Where you want to be in Fairbanks! A full service hotel with spacious suites, restaurant, lounge & meeting spaces. Offering complimentary internet access, large workspaces with data ports, room service, a 24-hour fitness room, on-site laundry facilities & airport shuttle service. Where the staff treats you like you matter!

1998

Located in midtown, walking distance to shopping and entertainment. Featuring separate areas for sleeping, eating and working, SpringHill Suites provides guests with a microwave, mini-fridge, desk and pull-out sofa bed. Enjoy complimentary continental breakfast and airport shuttle, as well as pool, whirlpool, exercise room and wireless.

2001

Come stay in downtown Fairbanks next to the Chena River. Featuring separate areas for sleeping, eating and working, SpringHill Suites provides guests with a microwave, minifridge, desk and pull-out sofa bed. Enjoy complimentary continental breakfast buffet and airport shuttle, as well as pool, whirlpool, exercise room and wireless.

2009

Beautiful lakefront lodging with mountain views, in town. Featuring separate areas for sleeping, eating and working, SpringHill Suites provides guests with a microwave, minifridge, desk and pull-out sofa bed. Enjoy complimentary continental breakfast and airport shuttle, as well as pool, whirlpool, exercise room and wireless.

1999

184

Only two hours north of Anchorage, full-service lodge offers spectacular views of Denali and the Alaska Range. With 212 guest rooms, two restaurants, a lounge, a gift shop and a tour desk for local activities, the spectacular view is only the first course. Enjoy friendly, Alaska hospitality. Group meal programs, banquet menus.

1994

Premier meeting and events facility in Ketchikan.

info@sewardwindsong.com sewardwindsong.com

info@sheratonanchorage.com sheraton.com/anchorage

cathy@fdifairbanks.com fountainheadhotels.com

hotelreservations@nmsusa.com marriott.com/ancsh

hotelreservations@nmsusa.com marriott.com/faish

hotelreservations@nmsusa.com marriott.com/ancum

info@talkeetnalodge.com talkeetnalodge.com

tfcc@city.ketchikan.ak.us city.ketchikan.ak.us

December 2013 | Alaska Business Monthly

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013 DIRECTORY FOR CONVENTIONS & CORPORATE TRAVEL

HOTELS, LODGING & VENUES

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013

DIRECTORY FOR CONVENTIONS & CORPORATE TRAVEL HOTELS, LODGING & VENUES Company Company

TopExecutive Executive Top

The Regency Fairbanks Hotel 95 Tenth Ave. Fairbanks, AK 99701 Phone: 907-459-2700 Fax: 907-459-2720

Dustin Adams, Gen. Mgr.

Tikchik Lodge PO Box 220507 Anchorage, AK 99522 Phone: 907-243-8450

Bud Hodson, Pres.

Wedgewood Resort 212 Wedgewood Dr. Fairbanks, AK 99701 Phone: 907-452-1442 Fax: 907-451-8184

Shane Arnold, Gen. Mgr.

Westmark Anchorage Hotel 720 W. Fifth Ave. Anchorage, AK 99501-2198 Phone: 907-276-7676 Fax: 907-276-3615

Charlie Ball, Pres.

Westmark Baranof Hotel 127 N. Franklin St. Juneau, AK 99801 Phone: 907-586-2660 Fax: 907-586-8315

Charlie Ball, Pres.

Westmark Fairbanks Hotel & Center 813 Noble St. Fairbanks, AK 99701-4977 Phone: 907-456-7722 Fax: 907-451-7478

Charlie Ball, Pres.

Westmark Hotels Inc. 800 Fifth Ave., Suite 2600 Seattle, WA 98104 Phone: 206-336-6000 Fax: 206-336-6100

Charlie Ball, Pres.

Westmark Inn Skagway PO Box 515 Skagway, AK 99840 Phone: 907-983-6000 Fax: 907-983-6100

Charlie Ball, Pres.

Westmark Sitka 330 Seward St. Sitka, AK 99835 Phone: 907-747-6241 Fax: 907-747-5486

Ron Hauck, Gen. Mgr.

AK AK Estab. Estab. Empls. Empls.

Services Services

1985

Our 128 guest rooms include a mix of traditional rooms, exec. whirlpool suites & family rooms. Kitchenettes & dual burner cook tops, microwave, large sink & full size refrigerator in select rooms. Fitness center, continental breakfast, on-site restaurant, 24 hr front desk, business center, laundrymat & compimentary airport shuttle.

1986

Guided flyout, sportfishing and accommodations.

1979

125

Wedgewood Resort is the perfect destination in Fairbanks for business travelers & families. Offering expansive 1 & 2 bedroom residential-style suites w/ fully-appointed kitchens. Featuring nature trails, activities & the acclaimed Fountainhead Antique Auto Museum. Seemingly miles from everything, yet minutes to shopping & attractions.

1987

112

Westmark Anchorage Hotel is located in the heart of downtown Anchorage. With 198 rooms and suites each with a private balcony, free wireless Internet, fitness center and a full service Solstice Restaurant & Bar on the first floor.

1939

The Baranof Hotel is a full service hotel located downtown within walking distance of the Capitol, cruise docks, shops and state offices. A gourmet dining experience awaits at the famous Gold Room restaurant or try a relaxing beverage in the Bubble Room Lounge.

1954

177

Westmark Fairbanks Hotel and Conference Center has 400 guest rooms, 13 conference/ breakout rooms, over 17,000 sq ft of conference space, Northern Latitudes restaurant (seasonal), Red Lantern restaurant (year round), fitness center, laundry service and coin operated facility, free WiFi, free Parking.

1987

750

For Yukon and Alaska hotels, look no further than the Westmark collection. Westmark offers an assortment of full service Alaska and Yukon hotels that are perfect places to kick your feet up during a business trip or vacation up north. With five year-round and two seasonal hotels, Westmark Hotels welcomes you with Northern Hospitality!

1950

The Inn's 151 guest rooms accommodate travelers in turn of the century style while guests looking for a special dining experience will enjoy the Chilkoot Dining Room where you can find friendly service and fine food for breakfast or dinner.

1978

Full service hotel located in downtown Sitka within easy walking distance to the Harrigan Centennial Hall, St. Michael's the Russian Orthodox Church, the Shee"Ka Kwaan Naa Kahidi Community House, the picturesque boat harbor, great fishing, shopping and "Totem Park".

info@regencyfairbankshotel.com regencyfairbankshotel.com

info@tikchik.com Facebook Tikchik lodge

wedgewood@fdifairbanks.com fountainheadhotels.com

info@westmarkhotels.com westmarkhotels.com

PASSENGER AIRLINES Company Company

Top TopExecutive Executive

Air Canada 7373 CA'te-Vertu Blvd. W. Saint-Laurent, QC H4S 1Z3 Phone: 888-247-2262 Fax: 514-422-6488

Calin Rovinescu, Pres./CEO

Alaska Airlines 4750 Old Int'l Airport Rd. Anchorage, AK 99502 Phone: 907-266-7200 Fax: 907-266-7229

Marilyn Romano, Reg. VP Alaska

Era Alaska 4700 Old Int'l Airport Rd. Anchorage, AK 99502 Phone: 907-266-8394 Fax: 907-266-8391

Bob Hajdukovich, CEO

JetBlue Airways Corp. 27-01 Queens Plaza N. Long Island City, NY 11101 Phone: 800-538-2583

David Barger, Pres./CEO

PenAir 6100 Boeing Ave. Anchorage, AK 99502 Phone: 907-771-2500 Fax: 907-334-5763

Danny Seybert, CEO

Security Aviation 6121 S. Airpark Pl. Anchorage, AK 99502 Phone: 907-248-2677 Fax: 907-248-6911

Stephen "Joe" Kapper, Pres.

AK Estab. Empls. Empls. Estab. 1937

@AirCanada aircanada.com 1932

alaskaair.com

Services Services Canada's largest full-service airline and the largest provider of scheduled passenger services for flights within Canada, between Canada and the U.S, and to every major international destination. (Seasonal service) South Terminal passenger operations at Ted Stevens Anchorage International Airport. facebook.com/aircanada.

1,650 Alaska Airlines and its sister carrier, Horizon Air, together provide passenger and cargo service to 98 cities in Alaska, Canada, Mexico, Hawaii and the Lower 48.

1948

960

Transportation

1999

1955

423

Passenger Transportation throughout SW Alaska. Take an extra day and enjoy some bear watching!

1985

Twenty-four/seven on-demand air charter. Approved carrier for State and Federal Agencies. Executive travel, crew changes, and "HOT" cargo.

PR@flyera.com flyera.com

@jetblue jetblue.com

missy.roberts@penair.com penair.com

sales@securityaviaition.biz securityaviation.biz

Alaska Business Monthly | December 2013

(Seasonal) South Terminal passenger operations at Ted Stevens Anchorage International Airport.

www.akbizmag.com

ALASKA THIS MONTH By Tasha Anderson

dining

Fruit Arrangements by Design

reat loved ones with a fresh gift from Fruit Arrangements by Design. The company is owned by Richelle Calvin, an Alaskan born in Juneau and raised in Anchorage. It all started as she was flying home in 2005: “I was flipping through one of those airplane magazines and I saw a picture of one [of the fruit arrangements]… and I thought, ‘We have to have one of these!’” Two years later, that mid-flight thought had become a reality, and Calvin runs the family business with help from her oldest son and some of her cousins. The fruit arrangement can be purchase individual or as packages, which may include balloons, sparkling cider, and unique containers and can be modified to fit the client’s needs. Calvin says, “If you see an arrangement and don’t like one of the fruits and want to add some of something else, we can do that.” The berries and fruits can be unadorned, but many of the selections are dipped in chocolate. “We use milk chocolate, generally, but if people ask for white or dark chocolate, we have both of those as well as sugar-free chocolate,” Calving says. “We also use peanut butter toppings, such as peanut butter dipped bananas or apples.” Currently, “we don’t have a physical storefront,” Calvin says. “We rent a kitchen space, and so at the moment we’re delivery only.” But, Fruit Arrangements by Design does deliveries throughout Alaska, including to Eagle River, Chugiak, the MatSu Valley, and delivers through GoldStreak to select cities in Alaska. For the coming season, be sure to check out the seasonal arrangements that include stars, angels, and gingerbread men. fruitbydesignak.com R www.akbizmag.com

Ask about our Custom Corporate Rates Around the State 1 (907) 249-8224 • b2b@AvisAlaska.com

December 2013 | Alaska Business Monthly

ALASKA THIS MONTH By Tasha Anderson

trAvel

Merry Merchant Munch

Fairbanks

Kenai

Skagway

Anchorage

Whittier Kodiak

Juneau

Sitka

Haines

Petersburg

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Alaska Business Monthly | December 2013

or those that have opted to stay in-state for the holidays, take a quick trip to downtown Eagle River for the Merry Merchant Munch. “It’s a festive open house for one to two days,” says Susan Gorski, executive director of the Chugiak Eagle River Chamber of Commerce. “Businesses, organizations, and offices decorate for the holidays and set out munchies, which is why we call it the Merry Merchant Munch.” Teams of judges will visit each participating location, enjoy a munchie, and award ribbons and plaques in such categories as Home Town Elegance and Festivus Favorite. In addition, either the Chugiak or Eagle River high school choir visits each participating location and sings. On Friday night at 5:30 p.m., the celebration centers in Eagle River’s Town Square Park (11924 Business Boulevard) for Winter Wonderland. “It’s a huge event,” Gorski says. “This year we have all eight elementary school choirs singing. Santa and his real reindeer will come at 7 p.m. with a torch parade, and he will help light the Christmas tree.” Some of our organizations set up tables with free goodies like hot chocolate and glove warmers. There will be a warming tent and there’s a sledding hill. “It’s an old fashioned event,” Gorski says. “We encourage families to bring canned goods and gifts as an opportunity to give back,” she continues. “The whole idea of this event is it’s an opportunity for philanthropy, for people and businesses to get involved in the community, and for businesses to kick off their holiday happenings.” Gorski says approximately sixty businesses participate each year. “We have one that just shuts down and has a party,” Gorski laughs. “They just put out food and celebrate.” Merry Merchant Munch is December 6, 2 p.m. to 6 p.m. and December 7, 11 a.m. to 4 p.m. cer.org/m/events/view/Merry-Merchant R www.akbizmag.com

ALASKA THIS MONTH By Tasha Anderson

entertAinment

Anchorage International Film Festival

ast year approximately eleven thousand people attended the Anchorage International Film Festival (AIFF), the only multi-genre international film event in the state. AIFF is the product of the hard work of Jim Parker, program director, who finds, screens, and selects the films; Theresa Scott, festival director, who organizes the many facets of the festival; and Tony Sheppard, founder and film enthusiast. According to Sheppard, AIFF brings “creative, cultural, and entertainment value” to the Alaska community. “About the same time that we started the film festival, the digital age of film making started to take off,” he says, so AIFF has been “a little bit of an inspiration or catalyst for local filmmakers.” This year, AIFF will take that to a new level as it initiates the Great Alaskan Short Film Contest. Local Alaskan filmmakers have the opportunity to create short films, fifteen to twenty minutes long, filmed entirely in Alaska. The four finalists will be shown together, with the winner being announced at the end of the screening. In total, $5,000 in cash prizes will be given out. “This is an opportunity for locals to have a bit more incentive and for us to build excitement for the festival,” Sheppard says. AIFF will open with a screening of ICEBOUND, produced and directed by Academy Award Nominated filmmaker Danile Anker, a feature length documentary about the 1925 Serum Run to Nome, which premiered at the International Documentary Festival in Amsterdam. While those raised in Alaska may be familiar with the story of Balto, ICEBOUND inspects the layered and complicated history surrounding the event. The AIFF selected ninety feature narratives, documentaries, shorts, super shorts, and animation films for screening this year. Thirty-six of the films were selected for competition and will go through the award jury process. AIFF passes are available for $100 online, while single tickets are $8 and can be purchased through individual venues for the festival, which runs December 6 through 15. anchoragefilmfestival.org R

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Anchorage • Fairbanks • Kenai • Juneau • Sitka • Kodiak • Petersburg Whittier • Haines • Skagway

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December 2013 | Alaska Business Monthly

EVENTS CALENDAR Anchorage 21

Christmas Village

This is the sixth year of the arts and crafts show that allows both Alaskan-made and imported crafts. Dena’ina Civic and Convention Center, various times. anchoragemarkets.com

Latin, and pop/rock in four part harmonies. Fairbanks Concert Association, 8 p.m. fairbanksconcert.org

Girdwood 31 New Year’s Even Torchlight Parade & Fireworks Display

Skiers and snowboarders hike up the slopes of Mount Alyeska 31 Fire & Ice New Year’s Eve Celebration with torches attached to bamboo poles, lighting the mountain. Sponsored by NECA/IBEW, this celebration features fire jugglers, After the parade is one of the largest firework displays in Alaska. silk acrobats, a light show, and live music. Town Square, begins at Alyeska Resort, 8 p.m. alyeskaresort.com 5 p.m. with fireworks at 8 p.m. anchoragedowntown.org

Eagle River 21

Annual Lantern Walk

Haines

Historic Fort William H. Seward Lights and Parade

The Snow Dragon Parade starts on Main Street. At 5 p.m. sharp a great cannon goes off, the fort lights up, and then participants can follow the luminaries into the parade grounds for a Nativity tableau followed by a bonfire and weenie roast. Main Street. haines.ak.us

This traditional candle-lit procession celebrates winter solstice. Participants bring finger foods or desserts to share and can bring or borrow and lantern. There will be a bonfire and heated yurt to warm up. Children can register for classes that will take place December 14 and 21 to make lanterns for the walk. Eagle River 13-14 Community Christmas Celebration Nature Center, walk is at 6 p.m. Activities include a candy/cookie contest, letter writing to and pictures with Santa, Mrs. Clause at the library for stories and Fairbanks songs, and holiday shopping. Various locations and times. 6-7 Holiday Art Bazaar haineschamber.org This annual bazaar features local artists and their works which Homer relate to Alaska, its lands, its people, and its history. Morris Thompson Cultural and Visitors Center, Friday 5 p.m. to 8 p.m. 6-7 Sugar Plum Holiday Fair and Saturday 10 a.m. to 4 p.m. alaskacenters.gov This holiday gathering benefits the South Peninsula Special 13 The Manhattan Transfer Olympics and includes food and handcrafts vendors and activities This Grammy-winning vocal group performs doo-wop, jazz, for children such as face painting or balloon tying. Homer United Methodist Church, Friday 10 a.m. to 6 p.m. and Saturday 10 a.m. to 5 p.m. homeralaska.org

Juneau 6-8

Annual Gallery Walk

Explore Juneau’s many galleries, shops, and museums. Featured artists are available to demonstrate or answer questions about their work. Downtown Juneau, various times. downtownjuneau.com

Skate City: Family Roller Skating

This is an opportunity for the whole family to go roller skating together presented by Centennial Hall in partnership with Taku Rollersports. Only roller blades and roller skates are allowed, no skateboards. Centennial Hall, 3 p.m. to 6 p.m. juneau.org

Ketchikan 7

Enchanted Forest Gala and Auction

This is the Ketchikan Chamber of Commerce’s primary annual fundraiser; attendees bid on tree adorned with gifts and other treasures. The evening includes dinner and the tree auction. Ted Ferry Civic Center, 6:30 p.m., auction begins at 8 p.m. city.ketchikan.ak.us

Kodiak 6-8

The Nutcracker

This Kodiak holiday tradition features both visiting artists and local dancers of all ages. Gerald C. Wilson Auditorium, Friday at 7 p.m.; Saturday at 2 p.m. and 7 p.m.; Sunday at 2 p.m. kodiakartscouncil.org

Nome 7

Fireman’s Carnival

This is the annual fundraiser for the volunteer fire department. Activities include games, concession stands, bingo, cake walks, and raffle prizes. Nome Recreation Center, 7 p.m. visitnomealaska.com 84

Alaska Business Monthly | December 2013

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Compiled by Tasha Anderson Palmer 13-15

Colony Christmas

This is an old-fashioned country Christmas celebration. Events include five craft fairs with nearly two hundred vendors, horsedrawn and reindeer sleigh rides, pictures with Santa, fireworks, a parade on Saturday, and a triathlon. Downtown Palmer, various times. palmerchamber.net

Petersburg 20

Holiday Open House

This annual celebration brings together holiday art, music, and food. Clausen Memorial Museum, 3 p.m. petersburgak.org

Sitka 6-8

Sitka Artisans Market

Expecting to draw over two thousand shoppers and managed by the Sitka Arts Council, this juried artisans market is a communityenhancing retail fair that gives local artists the opportunity to showcase original and distinctive quality wares before the holidays. Harrigan Centennial Hall, various times. sitkaarts.org

Talkeetna 7

Wilderness Woman Contest and Bachelor Auction

Starting at 1 p.m., women compete to prove their wilderness skills. Later that evening at 8 p.m., brave bachelors put themselves on the block hoping to fetch a high price. Following the auction is a ball, which runs until midnight and during which the Wilderness Woman is crowned. After the ball the Talkeetna lodge opens for breakfast, which is then served until 2 p.m. the following day. Sheldon Community Arts Hangar. bachelorsoftalkeetna.org

Valdez 8

Community Christmas Program

Friends and neighbors perform holiday inspired song, dance, and poetry on stage. The event is free, but a donation of canned goods for the Valdez Food Bank is encouraged. Valdez Civic Center, 4 p.m. valdezartscouncil.org

Wrangell 20-22

Jolly Shopping

Shoppers pick up a rewards card at any participating business and receive one stamp for every $10 spent. Five stamps make shoppers eligible to enter a $500 drawing. The winning ticket will be drawn at noon on Monday, December 23. Various locations and times. wrangellchamber.org R

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December 2013 | Alaska Business Monthly

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Alaska Business Monthly | December 2013

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ALASKA TRENDS

By Michael Malone

Alaska Oil Production Continues its Decline as US Oil Production Increases

Alaska Trends, an outline of significant statewide statistics, is provided by the University of Alaska Center for Economic Development.

he US Energy Information Administration 10,000 U.S. Field (EIA) says that field production of crude oil is Production 8,000 of Crude Oil on the rise in the United States, while produc1980-2012 6,000 tion continues to decline in Alaska. The EIA is part of Thousand Barrels 4,000 the US Department of Energy (DOE), and was created per Day 2,000 in 1977 as the single federal government authority for energy information. DOE gave EIA independence 0 from the rest of DOE with respect to data collection— and from the whole government with respect to the Alaska Field 2,500 content of EIA reports—and incorporated all the proProduction 2,000 visions of the Office of Energy Information and Analof Crude Oil 1980-2012 1,500 ysis. EIA is highly respected by those within governThousand Barrels 1,000 ment and by the world’s leading energy companies for per Day providing the most accurate and relevant energy re500 source information. EIA data shows that field produc0 tion of crude oil in the United States peaked in 1970 at 9.637 million barrels per day, and Alaska’s production 536 thousand barrels per day and Alaska was next at 526 thoupeaked in 1988 at 2.017 million barrels per day. The top chart shows that, since the US field production of crude sand barrels per day in 2012. The bottom chart shows Alaska has experienced a steady deoil fell to a level of 5 million barrels per day in 2008, production has trended upward reaching 6.488 million barrels per day in cline in production since 1988 except for a short pause in the de2012. EIA data indicates most of the nation’s gain in production cline of production from 2000-2003 when production remained was attributed to an almost doubling of output since 2007 in at nearly 1 million barrels per day. The EIA data shows that in Texas with just less than 2 million barrels per day in 2012, and 1988 Alaska’s daily production represented approximately 25 the quadrupling of production in North Dakota where produc- percent of the nations’ total field production of crude oil, and in tion reached 663 thousand barrels per day in 2012. California 2012 Alaska’s production represented just 8 percent of field proR ranked third for production nationally in the United States at duction of crude oil nationwide. 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Source: U.S. Energy Information Administration

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

1989

1988

1987

1986

1985

1984

1983

1982

1981

1980

Source: U.S. Energy Information Administration

SOURCE: US Energy Information Administration

ALASKA TRENDS HAS BEEN BROUGHT TO YOU THIS MONTH COURTESY OF AMERICAN MARINE/PENCO AMERICAN MARINE • Marine Construction/Dredging • Subsea Cable Installation & Maintenance • Commercial Diving • Platform & Pipeline Construction, Installation, Repair & Decommissioning • Underwater Certified Welding • Marine Salvage • NDT Services • ROV Services • Vessel Support Services PENCO • Environmental Response/Containment • Site Support Technicians/Maintenance • Waste Management/Environmental Monitoring • Tank Cleaning/Inspection • Petroleum Facility Maintenance & Repair • Logistics Support • 24-Hour Response

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ALASKA TRENDS

Indicator

GENERAL Personal Income—Alaska Personal Income—United States Consumer Prices—Anchorage Consumer Prices—United States Bankruptcies Alaska Total Anchorage Total Fairbanks Total

By Michael Malone

Units

Period

Latest Report Period

Previous Report Period (revised)

US $ US $ 1982-1984 = 100 1982-1984 = 100

2ndQ13 2ndQ13 1st H13 1st H13

36,642 14,006,152 210.85 232.37

36,441 13,872,543 206.62 230.34

35,977 13,639,239 205.22 228.85

1.85% 2.69% 2.74% 1.54%

Number Filed Number Filed Number Filed

August August August

47 24 6

49 28 4

74 59 11

-36.49% -59.32% -45.45%

EMPLOYMENT Alaska Thousands Anchorage & Mat-Su Thousands Fairbanks Thousands Southeast Thousands Gulf Coast Thousands Sectorial Distribution—Alaska Total Nonfarm Thousands Goods Producing Thousands Services Providing Thousands Mining and Logging Thousands Mining Thousands Oil & Gas Thousands Construction Thousands Manufacturing Thousands Seafood Processing Thousands Trade/Transportation/Utilities Thousands Wholesale Trade Thousands Retail Trade Thousands Food & Beverage Stores Thousands General Merchandise Stores Thousands Trans/Warehouse/Utilities Thousands Air Transportation Thousands Information Thousands Telecommunications Thousands Financial Activities Thousands Professional & Business Svcs Thousands Educational & Health Services Thousands Health Care Thousands Leisure & Hospitality Thousands Accommodation Thousands Food Svcs & Drinking Places Thousands Other Services Thousands Government Thousands Federal Government Thousands State Government Thousands State Education Thousands Local Government Thousands Local Education Thousands Tribal Government Thousands Labor Force Alaska Thousands Anchorage & Mat-Su Thousands Fairbanks Thousands Southeast Thousands Gulf Coast Thousands Unemployment Rate Alaska Percent Anchorage & Mat-Su Percent Fairbanks Percent 88

Alaska Business Monthly | December 2013

Year Ago Period

Year Over Year Change

August 332.20 332.60 334.00 August 184.40 184.90 184.20 August 41.40 41.10 40.90 August 43.70 42.85 41.10 August 36.45 36.55 35.30 August August 355.2 356.8 357.1 August 58.6 60.3 59.1 August 296.6 296.5 298.0 August 18.9 18.7 18.2 August 18.2 18.0 17.8 August 14.8 14.7 14.3 August 21.5 20.7 20.1 August 18.2 20.9 20.8 August 14.0 16.7 16.8 August 69.2 69.5 68.6 August 6.2 6.3 6.5 August 37.9 38.2 37.4 August 6.4 6.4 6.5 August 10.3 10.3 10.1 August 25.1 25.0 24.7 August 6.4 6.4 6.4 August 6.1 6.1 6.2 August 4.0 4.0 4.2 August 14.2 13.9 14.0 August 29.3 29.5 30.2 August 46.7 47.0 46.4 August 33.8 34.1 33.2 August 40.2 40.3 40.5 August 11.5 11.3 11.3 August 22.9 23.1 22.8 August 12.1 12.2 11.8 August 78.8 77.6 80.3 August 15.2 15.4 16.8 August 25.5 25.1 25.6 August 6.7 6.0 6.7 August 38.1 37.1 37.9 August 18.7 17.5 19.2 August 3.6 3.7 4.1

-0.54% 0.11% 1.22% 6.33% 3.26% -0.53% -0.85% -0.47% 3.85% 2.25% 3.50% 6.97% -12.50% -16.67% 0.87% -4.62% 1.34% -1.54% 1.98% 1.62% 0.00% -1.61% -4.76% 1.43% -2.98% 0.65% 1.81% -0.74% 1.77% 0.44% 2.54% -1.87% -9.52% -0.39% 0.00% 0.53% -2.60% -12.20%

August August August August August

369.28 195.28 45.97 43.77 42.66

373.52 198.15 46.24 43.46 43.28

369.82 196.75 46.33 43.15 42.71

-0.14% -0.75% -0.79% 1.44% -0.12%

August August August

6.5 5.1 5.1

6.3 5.3 5.2

7 5.6 5.5

-7.14% -8.93% -7.27% www.akbizmag.com

ALASKA TRENDS

By Michael Malone

Units

Period

Latest Report Period

Previous Report Period (revised)

Percent Percent Percent

August August August

4.7 5.7 7.3

5 5.9 7.4

5.3 6.4 8.1

-11.32% -10.94% -9.88%

Millions of Barrels Billions of Cubic Ft. $ per Barrel

August August August

13.27 6.32 110.57

15.28 5.53 111.61

12.54 8.23 110.79

5.82% -23.21% -0.20%

Active Rigs Active Rigs $ Per Troy Oz. $ Per Troy Oz. Per Pound

August August August August August

13 1781 1345.05 21.84 0.93

9 1766 1285.54 19.71 0.92

6 1913 1,667.25 28.69 0.91

116.67% -6.90% -19.33% -23.88% 2.20%

Millions of $ Millions of $ Millions of $

August August August

26.14 15.12 11.02

35.91 18.72 17.19

29.67 17.09 12.58

-11.90% -11.53% -12.40%

Total Deeds Total Deeds

August August

1063* 304

1153 327

1461* *GeoNorth 452

-27.24% -32.74%

VISITOR INDUSTRY Total Air Passenger Traffic—Anchorage Total Air Passenger Traffic—Fairbanks

Thousands Thousands

August August

640.65 120.45

664.87 122.07

590.55 119.20

8.48% 1.05%

ALASKA PERMANENT FUND Equity Assets Net Income Net Income—Year to Date Marketable Debt Securities Real Estate Investments Preferred and Common Stock

Millions of $ Millions of $ Millions of $ Millions of $ Millions of $ Millions of $ Millions of $

August August August August August August August

45,568.70 46,222.30 221.9 334.4 -85.7 -31.0 -496.6

46,018.30 46,803.90 112.5 112.5 34.9 2.6 949.8

41,450.80 42,130.80 251.9 316.4 -1.2 0.7 374.3

9.93% 9.71% -11.91% 5.69% 7041.67% -4528.57% -232.67%

BANKING (excludes interstate branches) Total Bank Assets—Alaska Cash & Balances Due Securities Net Loans and Leases Other Real Estate Owned Total Liabilities Total Bank Deposits—Alaska Noninterest-bearing deposits Interest- bearing deposits

Millions of $ Millions of $ Millions of $ Millions of $ Millions of $ Millions of $ Millions of $ Millions of $ Millions of $

2ndQ13 2ndQ13 2ndQ13 2ndQ13 2ndQ13 2ndQ13 2ndQ13 2ndQ13 2ndQ13

2,186.18 47.55 133.58 1,185.98 6.38 1,907.74 1,852.29 588.36 1,263.92

2,163.28 45.15 135.91 1,201.04 7.31 1,894.70 1,837.36 567.54 1,269.82

2,100.47 55.74 163.91 1,153.64 8.21 1,832.07 1,787.23 527.08 1,260.16

4.08% -14.69% -18.50% 2.80% -22.29% 4.13% 3.64% 11.63% 0.30%

FOREIGN TRADE Value of the Dollar In Japanese Yen In Canadian Dollars In British Pounds In European Monetary Unit In Chinese Yuan

Yen Canadian $ Pounds Euro Yuan

August August August August August

97.82 1.04 0.65 0.75 6.16

99.76 1.04 0.66 0.77 6.18

78.68 0.99 0.64 0.81 6.33

24.33% 5.05% 1.56% -7.41% -2.69%

Indicator

Southeast Gulf Coast United States PETROLEUM/MINING Crude Oil Production—Alaska Natural Gas Field Production—Alaska ANS West Cost Average Spot Price Hughes Rig Count Alaska United States Gold Prices Silver Prices Zinc Prices REAL ESTATE Anchorage Building Permit Valuations Total Residential Commercial Deeds of Trust Recorded Anchorage--Recording District Fairbanks--Recording District

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Year Ago Period

Year Over Year Change

December 2013 | Alaska Business Monthly

Advertisers indeX Alaska Air Cargo ................................................................................ 5 Alaska Air Transit .......................................................................... 84 Alaska Chamber ............................................................................. 36 Alaska Native Heritage Center ............................................. 63 Alaska Small Business Development Center...............86 Alaska Tobacco Control Alliance .........................................25 Alaska USA Federal Credit Union ....................................... 32 Alyeska Resort .................................................................................69 American Fast Freight................................................................60 American Marine / PENCO .....................................................87 Anchorage Opera........................................................................... 81 Arctic Office Products (Machines)......................................53 AT&T ....................................................................................................... 11 Avis.........................................................................................81, 82, 83 BDO USA ..............................................................................................31 Blood Bank of Alaska ....................................................................17 Business Insurance Associates Inc. ....................................44 Calista Corp. ......................................................................................33 Carlile Transportation Systems ............................................29 Chris Arend Photography........................................................90 Ciri Alaska Tourism ........................................................................71 Construction Machinery Industrial LLC ............................2 Cruz Construction Inc. ................................................................51 Dinoâ&#x20AC;&#x2122;s Donuts Inc...........................................................................86

Donlin Gold ........................................................................................38 Dowland-Bach Corp. ................................................................... 47 ERA ALASKA ............................................................................39, 59 ERA Helicopters..............................................................................49 Fairbanks Convention and Visitors Bureau...................77 Fairweather LLC .............................................................................23 Fountainhead Hotels ...................................................................49 GCI ..................................................................................................53, 91 Granite Construction .................................................................. 43 Great Originals Inc. .......................................................................28 Historic Anchorage Hotel.........................................................85 Horizon Lines .....................................................................................27 Hotel Captain Cook .......................................................................75 Implus Footware LLC / ICETrekkers ..................................15 Island Air Express...........................................................................83 James & Elsie Nolan Center .....................................................71 Judy Patrick Photography ........................................................38 Junior Achievement ..................................................................... 65 Lynden Inc. ..........................................................................................14 NANA Construction LLC ..........................................................52 NCB .........................................................................................................28 New York Life.......................................................................................9 Northern Air Cargo .............................................................66, 67 Northland Services ........................................................................55

Alaska Business Monthly | December 2013

Oxford Assaying & Refining Inc. ..........................................85 Pacific Alaska Freightways .......................................................41 Pacific Pile & Marine ...........................................................6, 7, 8 Paramount Supply .........................................................................86 Parker, Smith & Feek .....................................................................13 Pen Air ...................................................................................................61 Personnel Plus..................................................................................82 Rotary District 5010 ....................................................................85 Scan Office ..........................................................................................35 Seward Chamber and CVB ...................................................... 79 Span Alaska Consolidators .......................................................37 Spenard Builders Supply ...........................................................42 Stellar Designs Inc. ........................................................................86 Teck Alaska, Inc. / Red Dog Mine............................................ 3 Trailboss Solutions.........................................................................44 Trailercraft Inc. Freightliner of Alaska ............................. 56 UIC Construction Services ......................................................26 URS Corp. .............................................................................................15 Valdez CVB..........................................................................................57 Vigor Alaska ........................................................................................21 Washington Crane & Hoist.......................................................19 Wells Fargo ........................................................................................92 Westmark Hotels - HAP Alaska............................................70

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