Winter 2015 Advancing Anchorage MAG

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2014-2015

board of directors 2014-2015 Elected (15 Required; 3 year terms; can serve up to 3 terms) Janelle Pfleiger, associate broker, RE/MAX Properties (chair) Julie Anderson, health, safety, environment & stakeholder manager, Alaska Energy Authority (chair-elect) J.R. Wilcox, president, Cook Inlet Energy (vice chair) Bruce Bustamante, vice president of community & public affairs, Princess Cruises Chris Clifford, vice president & principal business relationship manager, Wells Fargo Mike Hayhurst, office managing partner, KPMG Susan Jensen, manager, Bayshore Clubhouse Greg Mattson, vice president of drilling/ completions, BP Bill O’Leary, CEO, Alaska Railroad (secretary-treasurer) Melissa Reiser, vice president of commercial lending, First National Bank Alaska Tim Thompson, manager of public affairs, Alaska Airlines Joy Merriner, audit director, BDO USA, LLP Andy MacLeod, general manager, KTUU-TV Randy Cunningham, sales supervisor, KLEBS Mechanical

Appointees (Up to 12, Optional; 1-year terms; can serve up to 3 terms as appointed) Sandra Heffern, owner, EHD Enterprises (past chair) Art Clark, associate broker Dr. Michael Acarregui, CMO, Providence Alaska Medical Center Jan Seglem, operations technical manager, ExxonMobil Matt Thiel, corporate controller, Hickel Investment Company Richard Watts, district manager, Safeway Brian Franklin, CEO, Frontier Tutoring Jana Hayenga, owner, Cabin Fever Nick Brorson, Sockeye Business Solutions Ben Hemmila, The Wilson Agency Scott Torrison, Bristol Bay Native Corporation Jim Costka, GCI

1016 W. Sixth Ave., Suite 303 Anchorage, AK 99501 phone (907) 272-2401 fax (907) 272-4117 info@anchoragechamber.org Anchoragechamber.org President Andrew Halcro Editor/Publisher Corey Hester Photos submitted will not be returned unless accompanied by a self-addressed, stamped envelope. The Anchorage Chamber reserves the right to edit all information submitted for publication.

Published by

Ex-Officios 301 Arctic Slope Ave. Suite 350 Anchorage, Alaska 99518 (907) 561-4772 Publisher Rona Johnson Managing Editor Andrew Jensen Production Manager Maree Shogren Graphic Artist Nadya Gilmore Cover Photographer Michael Dinneen Account Executives Jada Nowling: jada.nowling@morris.com Ken Hanni: ken.hanni@morris.com Joy Bunde: joy.bunde@morris.com Photo/Dan Joling/AP

Col. Bruckbauer, Commander, U.S. Air Force, Elmendorf Ed Graff, superintendent, Anchorage School District Bill Popp, president/ CEO, Anchorage Economic Development Corporation Rashmi Prasad, dean, College of Business and Public Policy at UAA Julie Saupe, president/ CEO, Visit Anchorage Christopher Schutte, executive director, Anchorage Downtown Partnership, Ltd. George Vakalis, city manager, Municipality of Anchorage

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A DVO C AC Y

TO U R I S M

C A L E N DA R

L E T T E R F RO M T H E P R E S I D E N T 7 A L L A B OA R D ? 8 HOLLAND AMERICA PRINCESS, A L A S K A R A I L ROA D G R E W U P TO G E T H E R 1 4 C H A M B E R A DVO C AC Y 1 6 TO U R I S M 1 8 M E M B E R S P OT L I G H T 2 0 I N D U S T RY U P DAT E 2 2 H E A LT H & W E L L N E S S 2 4 S C H O O L B U S I N E S S PA RT N E R S H I P 2 6 ON THE COVER Photo/Michael Dinneen/Michael Dinneen Photography An Alaska Railroad employee walks the yard as sunrise nears last fall in Anchorage. The railroad requires more than $20 million in state funding to meet a federal deadline for installing Positive Train Control safety infrastructure.

FINANCE 29 MEMBER BENEFITS 30 NEW MEMBERS 30 A M B A S S A D O R O F T H E Q UA RT E R 3 1 CHAMBER EVENTS 33 A RO U N D TOW N C A L E N DA R 3 4

Thank you to our 2015 renewing Executive Level Members

Anchorage Chamber of Commerce | 5


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letter from the president

Ringing in our centennial year

Photo/File/The Milepost

Andrew Halcro President & CEO Anchorage Chamber of Commerce Happy New Year and welcome to the Anchorage Chamber of Commerce’s first issue of Advancing Anchorage Magazine for 2015. Our winter issue highlights our legislative public policy agenda for the coming year, just in time as the Alaska State Legislature returns into what will be a very demanding legislative session. With the State of Alaska facing multi-billion dollar budget deficits, the budget decisions made over the next 90 days in Juneau will have dramatic effects on Anchorage and its economy. Our cover story this month is on the significant financial pressure the Alaska Railroad Corp. is under as a result of a costly unfunded federal mandate. In 2008 Congress passed the U.S. Rail Safety Improvement Act after a deadly train collision in California. The legislation requires the installation of additional safety technology to prevent on track collisions, called Positive Train Control. The timing of this mandate couldn’t be

more problematic for Alaska’s iconic railroad, as the corporation is already facing a revenue pinch from lower freight revenues. To complicate matters, if the railroad does not continue to show progress towards meeting the federal timelines, their ability to carry over 500,000 passengers a year will be threatened. The loss of passenger service would have far reaching economic consequences for tourism around the entire state. This issue we also introduce our 2015 legislative priorities. These are determined by detailed surveys, which ask Anchorage Chamber members to identify what they believe the chamber should be advocating for this year. Issue such as stable energy supply, mitigating health care costs and rule changes, workforce development and affordable housing have all risen to the top of our member’s responses. In our tourism outlook, Visit Anchorage checks in to dispel the myth that the winter is the slow season. In fact, while winter might be the low season with regards to the number of tourists visiting Anchorage, it definitely isn’t the slow season for our local tourism officials. This is the time of year where the great folks at Visit Anchorage are working their hardest to make sure hotels, car rentals and conference rooms are all booked for the coming summer season. In addition, Holland America Princess writes about their long and storied history with the Alaska Railroad in growing tourism in Alaska. The member spotlight turns to Automated Laundry Systems & Supply, who for 34 years has been providing Anchorage

with state of the art commercial and industrial laundry technology. Verizon Wireless, the new telecom kid on the block in Anchorage, gives us an update on how their entrance into the market is progressing, and Alaska Regional Hospital addresses how they are helping meet the growing challenges in health care. The school business partnership feature this issue is on the major role the Alaska Railroad has played in the program over the last 30 years. Since 1991, the railroad has been big supporter Government Hill Elementary School, and their contributions to students and teachers have been well noted. Our friends at Denali Alaskan Federal Credit Union give you five steps to organizing your finances, and not one of those steps suggests you use a shoebox to organize your receipts. In the member benefits section you can learn how to improve your investment in your Anchorage Chamber membership, and we invite you to read about our Ambassador of the Quarter, Roberta Collier. Finally, check out the chamber events and around town calendar, as they’ll keep you up to date on what is happening at the Anchorage Chamber and around our great city. In 2015, both the Anchorage Chamber of Commerce and the City of Anchorage turn 100 years old. This coming year we look forward to celebrating our shared centennial with the community and we’re proud to kick off the year with what we feel is a great issue of Advancing Anchorage Magazine. Happy New Year and happy reading! Anchorage Chamber of Commerce | 7


Empty passenger cars on the Alaska Railroad could become a reality if funding isn’t provided to complete the federally mandated Positive Train Control safety system.

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All ? d r Aboa By Corey Hester Editor

Left Photo/Michael Dinneen/Michael Dinneen Photography

Right Photo/Courtesy/Alaska Railroad Corp.

An Iconic Alaskan Imprint Alaska’s iconic state-owned railroad hauls five million tons of freight and transports well over 400,000 passengers to dozens of diverse communities throughout the railbelt. Now, one of Alaska’s most critical transportation links could be severed if the state legislature doesn’t appropriate funds for safety upgrades mandated by the federal railroad administration through a program called Positive Train Control, or PTC. Although railroad revenues and federal grants have funded many of the upgrade costs, additional funding is essential. Without this funding, the support the railroad provides for tourism, industries and communities could be abruptly de-railed. Support for state funding is growing as more and more Alaskans come to recognize the railway’s importance to the state’s economy. Tour operators, freight haulers, oil field services companies and everyday Alaskans are rallying around the reliable workhorse as it chugs from tidewater, over scenic mountain ranges and plateaus, to cities and towns where most of the state’s residents live. “The Alaska Railroad provides a wonderful option for Alaska’s visitors in filling a transportation need with a great, and unique, experience,” says Julie Saupe, President/CEO of Visit Anchorage. The Alaska Railroad is easily one of the state’s largest, most unique attractions. Operating since 1914, its historical imprint throughout Alaska is significant. Aside from being an iconic symbol, the railroad

Railroad funding critical to maintain passenger service

impacts Alaskans in a variety of subtle, yet powerful ways as it shuttles hundreds of thousands of tourists and tens of thousands of locals to numerous communities across the state. As one of the state’s larger employers with nearly 600 jobs, the railroad also has an overwhelmingly positive economic impact across more than 500 miles — more than half the state. The annual spending by visitors to Alaska via the railroad alone is an impressive $100 million surplus, and it won’t stop there. The railroad increased its passengers from about 400,000 in 2010, to nearly 500,000 by 2013. This was an increase in passenger-generated revenue of about $20 million in 2010, to just under $26 million in 2013. It’s evident the interest in using rail is growing rapidly. The federal government owned the Alaska Railroad for over 60 years after its completion in 1923. In 1985, Governor Sheffield and the State of Alaska boldly purchased the railroad for a mere $22.3 million. The vision of positive economic growth and a fruitful relationship between the railroad and the state was widespread. According to Alaska Journal of Commerce business writer Tim Bradner, this strengthened the “backbone of strategic transportation infrastructure for Alaska.” As Alaska continues to expand internally, the railroad has seen great potential in extending lines to meet the demand for services. Within the last two decades, the railroad has modernized and expanded its port facilities in Seward, Whittier and

PTC technology must be fully installed and operational by the end of 2015, and additional upgrades are required in 2017 and 2018.

Anchorage with plans to implement the federally mandated PTC.

Obstacles on the Track In 2008, the U.S. Rail Safety Improvement Act was passed in response to the collision of a freight and passenger train in California that resulted in the deaths of 25 passengers and injured 135. The bill sailed through Congress and was signed by President George W. Bush in less than two months. Consequently, all passenger railroads Anchorage Chamber of Commerce | 9


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The Alaska Railroad made Nenana what it is today By Miles Martin Past President of the former Nenana Valley Chamber of Commerce

Photo/File/AP

within the United States are now re- spending, direct and indirect employquired to completely integrate PTC tech- ment, lodging and increased highway nology by Dec. 31, 2015, albeit in incre- traffic is enormous. In 2012 alone, the mental steps, to eliminate human errors railroad had 415,700 paying passengers that could lead to dangerous conditions who contributed almost 20 percent of the for workers and passengers. railroad’s total revenue. The other numPTC is an elaborately complex and ex- bers are also huge: direct and indirect pensive task. It requires dual-path back- employees were paid over $30 million; haul network communication at some direct, indirect, and non-payroll spendof the 34 communication sites requiring ing was over $10 million; and annual upgrades across the state. It also needs to non-resident passenger spending in 10 be integrated into 54 of the locomotives years was closing in on $1 billion dollars. and cab control equipment operated by Without passenger service by rail, travthe Alaska Railroad Corp., or ARRC. el by bus and car would be the only alterARRC receives federal formula natives, resulting in congestion at Denali funding for critiNational Park Figure 1 cal maintenance and other railPositive Train Control and debt service served tourist Funding 1997 - 2018 based on passendestinations. ger service. As Julie Discontinuing Saupe points Unfunded 2017 & 2018 need passenger service out, there’s also $31,700,000 would have an a more practienormously negacal level that ARRC & Federal Funding 1997 - 2015 $68,900,000* tive effect on the we benefit from FY2016 State Budget railroad’s ability with Alaska Request for 2016 $21,800,000 to allocate fundRailroad’s pasing toward proper senger service. FY2015 maintenance of “It’s an efficient State Funding FY2014 $15,000,000 State Funding the train, track means to trans$19,100,000 and facilities. port visitors. In Simply put, if Graph does not include $5 million to $7 million on-going 2013, roughly 20 the Alaska Rail- annual operational and maintenance cost of PTC that will percent of Alasroad does not be funded by ARRC. ka’s visitors, over receive requisite *Includes $5.1 million allocated by ARRC 390,000 people, Board of Directors for 2015 funding from the include rail travel state legislature, it cannot implement in their itinerary,” says Saupe. “If these same the safety requirements. visitors were instead on our road system, that According to Bill O’Leary, ARRC could mean another 8,000 motor coaches or President and CEO, the state’s life- in excess of 150,000 cars [assuming an averline faces fines of up to $25,000 a day age party size of 2.5 people] traveling Alasand service curtailment if it does not ka’s roadways.” show satisfactory progress in meeting Discontinuing passenger service the safety measures by New Year’s Eve would have an adverse domino effect in 2015. with the loss of hundreds of local jobs The ARRC has already invested $68.9 and millions of dollars in passenger million of the nearly $160 million develop- spending. The railroad would also lose ment and implementation costs since 1997 millions of dollars from Federal Transit [figure 1], 21 years before it was even man- Administration grants if passenger serdated. With the decline in key lines of busi- vice were discontinued. nesses, including refined petroleum prodOver 2,000 jobs in 275 businesses are ucts and exported coal, and significant cuts connected to passenger service, pumping to the federal budget, the ARRC no longer approximately $50 million into the local has the financial resources to fund PTC economy [figure 2] and generating sales tax improvements that will limit human error, revenues for Seward, Wasilla, Palmer and and yet it must adhere to federal mandates. other rail hub cities. Consequently, the loss of visitors to The Crushing Domino Effect communities will impact local governThe railroad’s economic impact on ment revenues since the sales tax is an im-

Without the railroad, Nenana would be a very different and probably much smaller community. In 1914, the railroad between Fairbanks and Anchorage stopped at the Tanana River. The place was Nenana, Alaska, a small native village without a lot going on. The railroad set up a camp to take care of railroad workers and build a bridge. Log cabins got built, a new Nenana was formed, with a rail and industrial presence. The bridge that got built is unique, being the second longest single span railroad bridge across a river. At the time there was concern with what might happen to cement in the frigid Alaska winter and river current, along with ice, and its jams. The decision was to support the bridge from both banks, with no pillars in the river. President Harding was impressed, and on hand to drive a ceremonial gold spike to commemorate big event of the river crossing. No one knows where this gold spike ended up! Darn! Nenana was the end of the rail line for a long time. As far North as the rail went! During the diphtheria epidemic in the 1920s, Eskimos up in Nome were without the cure the rest of us had, and were in a desperate straight. It was the railroad that carried the serum as far as it could as fast as it could to Nenana. In Nenana the serum had to be transferred to dog sled and a relay from trapper to trapper took place all the way to Nome. This saved many people, and has been commemorated by the Iditarod dog sled race. The railroad played a very big part in this heroic effort, working with Nenana at the end of the line.


In more modern times, there is a train supplies, because there is no road. Withstation in Nenana, and is how many supout the ability to carry heavy amounts plies and passengers arrived over a lot of cheaply that the rail system offers, the years. Coal going between the Healy mines barge line and Nenana would have a much and the Fairbanks power plant passes harder, maybe impossible time. through Nenana on a daily basis. It is the railroad that can be counted on The passenger train all summer takes to donate to causes for the Chamber of tourists to Denali Park, and between Commerce. Over the years a lot of supFairbanks and Anchorage, with a flag stop port has come from the railroad. Like in Nenana these days. The original train prizes of free train trips we in turn offer station is now a museum, selling many to help a worthy cause in the communirailroad related memorabilia. Tour buses ty. There was new carpeting in the civic stop and drop off busloads of tourists at center one year! Sometimes in winter the the railroad museum. Old train trip storailroad offers a trip to Nenana for one of ries and railroad events are told by old our events like tripod days, so Fairbanks timers. Several locals have been lifetime people can get out of the big city and enrailroad employees. joy dog races, a bazaar, and the chance to State homestead land opened along the buy ice classic tickets, for $2.50, worth a rail right of way. Many of these homepotential $300,000! steaders still depend on flag stops to drop In many of the Ice Classic posters, the them off with a winter’s worth of supplies train bridge is shown. The train posters are from the big city. Tourists stare out the window wondering why the train stopped in the middle of nowhere! “The center of everything you mean!” an old crusty trapper grins, stepping off the train. Tourists click pictures of a world not seen in the lower states. I’m a senior, maybe character myself. The railroad offers a discounted trip to us seniors at the end of each season. A group of a dozen or President Warren G. Harding was on hand to drive the golden spike so seniors from Nein Nenana at the completion of the Alaska Railro ad crossing over nana each year take the Tanana River. the wonderful trip between Fairbanks and Denali. It never gets old! Wow what a view very popular in the Nenana gift shops, as of the wilds! well as painted railroad spikes with various Looking down into those gorges, spotscenes on them as souvenirs. ting moose, seeing hawks and eagles is very Nenana looks at other communities special. This bargain trip each year is apnot on the rail system who are suffering preciated by those of us who do not get far more than we are. We feel lucky to be away anymore, living on social security. along the rail route and part of the railThe barge line in Nenana receives road community! In fact Nenana means much of its downriver supplies from the “A great place to catch the train” What? It railroad. A crane lifts entire containers doesn’t? Oh that’s right, Nenana is a great of supplies off the flatbed train, and sets place to camp between two rivers. And them on the barge. This is the only way where the train begins and ends. Well! some downriver villagers can get heavy So some of us think!

portant mainstay of local budgets that fund basic services. The loss of revenues could result in municipalities cutting services or finding other sources by, for example, increasing property taxes or other service fees. Over 373,700 non-residents traveled on the Alaska Railroad in 2012 and spent approximately $100 million in the railbelt. This figure does not include over 40,000 Alaskans who also traveled on the railroad from Seward to Fairbanks and everywhere in between. A non-resident spends an average of $171 in Anchorage, $164 in Denali, $106 in Fairbanks, $90 in Talkeetna and $79 in Seward [figure 3]. Replacing the popular, scenic, and income-generating rail service would be challenging for businesses and would have negative impacts on municipalities from the potential loss of visitor spending in the region. The loss of passenger service would have irreparable effects on state employment statistics. The 65 year-round and 114 seasonal workers in passenger service earn $11 million in wages and benefits and spending within the ARRC in support of passenger operations amounts to $7.8 million. The loss of 270 directly or indirectly employed workers would result in a loss of $15.4 million in wages to Alaska workers. Additionally, an estimated 800 workers have an annual payroll of $15 million in the ARRC’s visitor industry partnerships. The railroad’s estimated budget for PTC technology implementation is $150 million. For FY 2016, the state budget request is $21.8 million, leaving a remaining unfunded request of $31.7 million for FY 2017 and FY 2018 combined. PTC funding would cover safety upgrades to the signals and switches; monitoring; integration and management; and locomotive, communications and office segments. Although much of the PTC software must be installed and operational by December 31, 2015, ARRC’s plan for full PTC implementation of all the hardware for wayside device monitoring and communications is December 2018. ARRC CEO Bill O’Leary refers to PTC as the “mother of all unfunded mandates.” As the state faces declining Anchorage Chamber of Commerce | 11


oil revenues with the drop in the price of oil, the railroad is looking to increase revenues. The railroad is now one-third smaller than it was in 2008, when there were declines in freight hauling. The biggest contributing factor to the decrease in size was the closure of Flint Hill Resources’ North Pole Refinery last summer. According to O’Leary, the corporation has since undergone significant restructuring in personnel, cutting an immense amount of non-personnel costs. According to O’Leary in the July 2014 Alaska Business Monthly, “If there is a mantra I’m trying to push right now, it’s that we’re going to grow our way out of the situation.” Indeed, the ARRC is reviewing several options. In addition to cost cutting and applying for federal grants, the ARRC is looking at all of its resources to increase revenues. The corporation owns roughly 36,000 acres along the railroad, with significant holdings in Anchorage, Seward and Fairbanks. The Municipality of Anchorage has suggested using some of the land along Ship Creek for public use, extending downtown, tapping into the area’s recreational and economic features, and focusing on increasing pedestrian use of the area. The railroad is also encouraged by the increase in freight business. Rail barge traffic is up 15 to 20 percent from last year. O’Leary attributed much of the increase to ramped-up production activities on the oil field because of the Senate Bill 21 oil tax revisions that were passed by the 2013 Legislature (ABM, July 2014). Even with these opportunities, if the state legislature fails to appropriate the funding for the required federal safety upgrades, the impact will be disastrous for the already burdened railroad. Everything along the railroad, including individuals and small businesses, will be affected in both the private and public sectors.

Figure 2

ARRC Passenger ServicesRelated Employment, 2012 900 jobs 800 jobs

270 jobs

ARRC Passenger Services

Passenger Services Non-Resident Partners Passenger Spending

ARRC Passenger Services-Related Labor Income, 2012

TOTAL LABOR INCOME: $50 MILLION

Whittier: The Railroad Town By Kelly Bender President, Greater Whittier Chamber of Commerce; co-owner of Lazy Otter Charters Inc Whittier is a railroad town. Oh sure, we are a port town, a tourist town, and a fishing town, but FIRST we are a railroad town. After all, that’s how Whittier got started. The tunnels were built in 1941 to connect the railroad with Whittier’s ice-free port and Anchorage.

At first it was for the war effort but today the trains continue to supply Anchorage and the rest of northern Alaska with freight and supplies. The moment you enter Whittier you know it’s a railroad town. The tracks run right through the middle of the city. Looking to the west end of Whittier you can see stacks of containers waiting to be loaded onto train cars heading north or onto the hydro train (a barge that train cars can directly roll on an off ) and head south to Vancouver, B.C., or Seattle. We even have a pedestrian tunnel, built by the railroad, that passes under the tracks so residents and visitors can travel between uptown and downtown safely. Whittier residents and the Alaska Railroad have a special relationship.

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Remember, the only way you could get to Whittier was by train until 2000 when the tunnel opened to vehicle traffic. Some of us miss that 40 minute jaunt on the train. But in 2009 we got to experience that trip again when the Alaska Railroad came to the rescue on April 11 after a massive rockslide on the Portage Highway. The rockslide, over 30 feet high and 300 feet long, closed road access to Whittier. People and vehicles were stuck on either side of the tunnel. The Alaska Railroad immediately stepped up moving vehicles on rail cars and adding the passenger car back into service from Portage. For over a month the railroad provided transport to residents and businesses who were getting ready for

Photo/Courtesy/AK on the Go

Source: McDowell Passenger Impact Study 2014


No “I” in Team

The Alaska government and the Alaska Railroad have a long, positive history of working together. “The working relationship between the Alaska Department of Transportation and Public Facilities and the Alaska Railroad has greatly improved over the last few years,” says DOTPF Commissioner Patrick Kemp. “O’Leary and I recognize that we are partners in Alaska’s transportation network and are willing to help one another whenever possible. Collaborative efforts such as this will ensure Alaskans and businesses are receiving the best service possible to build Alaska.” Recently, the state legislature has recognized the importance the railroads passenger service and the urgency of the PTC issue by appropriating $19.1 million for PTC in 2014, and $15 million in 2015. The railroad needs a small boost up to $21.8 million in 2016. However, the railroad looks to mitigate its request to a comparatively small average of $16 million a year for 2017 and 2018 to finish PTC implementation. Bipartisan support of railroad funding crosses political and social divides, bridging the state’s traditional, cultural, and economic diversity. Local merchants and billion-dollar corporations alike recognize the value of the railroad to Alaska’s economic and financial wellbeing. All the communities along Alaska’s backbone are economically interconnected

through this freight and passenger traffic. O’Leary is pushing for positive and consistent progress so that the railroad can Riding the Alaska Railroad is an incredcontinue beyond Dec. 31, 2015. ible experience that is not easily duplicated. If progress and milestones are met With unparalleled scenery that, in some inO’Leary says, the federal government will stances, is unreachable by vehicle, the comlikely not take munities and Figure 3 any drastic actowns along the Alaska Railroad Non-Resident tion that could way have a sym- Passenger Spending by biotic relation- Community (Average per-person) curtail service. Alaska has ship with the certainly faced its railroad. Anchorage $171 In the face of share of rough these challenges, times. During terDenali $164 smart leadership ritorial days and and strategic, inearly statehood $106 novative imple- Fairbanks years, Alaskans mentations help always banded $90 drive the ARRC. Talkeetna together and perDespite ARRC severed, to make Seward $79 having underdo with what was gone major coravailable and to porate restrucsupport the state’s Source: McDowell Passenger Impact Study 2014 turing to address essential needs. their difficult financial situation, the railroad The Alaska Railroad has served as a stable, looks to adapt and innovate the rail system. connecting link to what Alaska was and what The railroad is continuing to add new Alaska will be. Its benefits are just as real tothemed train rides to strengthen the re- day as they were when President Harding lationship between the business com- drove the spike in 1923. munity and the railroad, creating a large, The railroad is essential to the state on so unique draw for Alaskans and tourists. many levels. As O’Leary puts it, they are comAdditionally, the railroad has provided mitted to striving forward and will tactically new services to their pull customers in- navigate through these difficult times. cluding direct to Denali trips from AnThere’s a light at the end of the tunnel chorage for Holland-America Princess as the Alaska Railroad’s steady momencustomers allowing for more freedom in tum gathers broad support, so for now, full continuing up to Fairbanks. steam ahead.

a busy summer season and the first cruise ship of the year. Although freight is a yearround operation in Whittier for the railroad, summer is when service really ramps up with daily passenger service. The Glacier Discovery train brings visitors into Whittier where they can access Prince William Sound via tour boat, fishing charter or kayak. In 2014, the Alaska Railroad reports transporting Whittier is a tourist town and a fishing town, over 19,300 guests on that but first and forem ost it is a railroad town. route, a 3.9 percent increase over 2013. That number represents independent visitors on that scheduled service and doesn’t The cruise train is a special service, pulled account for the “cruise train” passengers. by Alaska Railroad engines, transport-

ing cruise ship passengers into Whittier. Princess Tours reports over 50,000 passengers in and out of Whittier via cruise train this summer. There is no doubt that Whittier is a railroad town. The Alaska Railroad owns much of the land our town sits upon. They own and share a tunnel as the entrance to our town. We rely on the goods and services they bring to our town, and the Alaska Railroad employees, who live and work in our community, are a vital part of our economy and way of life. Anchorage Chamber of Commerce | 13


By Allison L. Hovanec

In 1984, Princess Cruises pioneered the concept of luxury rail service in Alaska with the purchase of four original Super Dome rail cars. Four years later they introduced the largest guest rail cars in the world, the Ultra Dome Series. As the Alaska travel industry grew, Holland America Line followed suit, also purchasing branded rail cars. By the late-1980s contracts were finalized: the Alaska Railroad agreed to use their engines to pull the private rail cars, and promote both cruise brands on the rail car exteriors with decorative logos. Eventually, the Holland America and Princess rail fleets were combined into a single collab-

John Crews, Superintendent of Rail and Marine Maintenance who has worked for Holland America Princess Alaska-Yukon, or HAP Alaska, since the mid-1990s. “Learning to operate the Dome cars was an enormous undertaking and learning experience for the company. Railroad employees would come over to help us perform maintenance, solve problems, and talk shop. It’s a close, almost sibling like relationship that has spanned decades.” Today, HAP Alaska manages a fleet of 20 Colorado-built, two-level dome rail cars, including 10 of the largest domed passenger railcars in the world, each with a capacity of 88 passengers. Every Saturday and alternating Wednesdays there are two northbound departures, two southbound departures, and a train traveling from Whittier to Talkeetna.

orative land operation. Traveling in Alaska by rail is considered a rite of passage for many of our cruise customers who take advantage of what are affectionately called cruisetours, which give travelers the opportunity to combine a Gulf of Alaska cruise with a tour of interior Alaska in comfort and style. “We’ve grown up with the railroad,” said

More than 155,000 HAP Alaska guests travel by rail as far north as Fairbanks and as far south as Whittier. But they aren’t the only ones traveling the rail system; the Alaska Railroad shares the tracks while operating their passenger cars and freight trains. This makes collaboration between the two companies crucial during the busy summer tourism season.

Public Affairs Specialist, Holland America Princess Alaska-Yukon

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“There’s only one set of tracks between Anchorage and Fairbanks,” said Crews,“and that means we have to work together.” For most cruise passengers, traveling to Alaska is the trip of a lifetime. While the cruise itself provides magnificent views of wildlife and the beautiful coastlines, getting the most out of an Alaskan vacation requires stepping off the ship and into the wilderness. Cruisetours provide the opportunity to pack two trips into a single dream vacation — allowing passengers to travel through three diverse areas of Alaska: Southeast, Southcentral, and into the Interior. One of the most popular cruisetours weaves passengers hundreds of miles through the Matanuska Valley and into Denali National Park, where more than 500,000 visitors come each year to view the majestic Mt. McKinley and the abundance of wildlife that call the park home. Using the rail as our main transportation hub is not only key to the success of our logistics and transportation operations, it is also an essential component to our uniquely Alaska customer experience. There are many benefits to using the railway as a mode of transportation in Alaska. The total upper level seating for ten Ultra Dome cars is 880. Motorcoaches rely on the heavily traveled road system, and only have the capacity to hold 50 guests. Train passengers have the freedom to be mobile. They can stand outside on the observation platforms, enjoy food and drink, or mingle with other passengers. “The energy level on the train is much higher than a motorcoach,” said Crews. “There is an excitement in the air. If we weren’t able to traverse this long distance by rail it would not be as efficient, and we would lose the romanticism that only travel by rail can provide. It’s how we market land tours in Alaska.” It’s this romanticism, with a generous helping of rustic charm that connects our guests to the real Alaska. The train conductors,

Photos/Courtesy/Holland America Princess Alaska-Yukon

Holland America Princess, Alaska Railroad grew up together


Traveling in Alaska by rail is considered a rite of passage for many of our cruise customers who take advantage of what are affectionately called cruisetours, which give travelers the opportunity to combine a Gulf of Alaska cruise with a tour of Interior Alaska in comfort and style.

dressed in traditional railway company uniforms, take time to meet and talk with passengers — much like the captains on Princess and Holland America cruise ships do. Iditarod musher and fan favorite Aliy Zirkle welcomes guests to Alaska on the Denali Wilderness Express train, which travels from Whittier to Denali National Park. Along a remote stretch of rail, surrounded by dense Alaskan birch and spruce forest, the train picks up passengers like Shannon Cartwright, who live off the grid and count on one of the last whistle stops in the country to access their homesteads and cabins. Cartwright sells her Alaska children’s books and chats with guests about her pioneer lifestyle on the way into Denali. Tour guides narrate the excursion, which takes the route less traveled: tracks cutting through wilderness, low mountains and over glacially fed rivers. Demand continues to grow for HAP Alaska cruisetour excursions, and the future of land operations in Alaska looks bright. 2014 marked HAP Alaska’s first year operating a daily rail service on a charter basis rather than being pulled behind the Alaska Railroad’s daily Anchorage to

Fairbanks scheduled service. Several refurbishment projects are ramping up, including work on converting the seating configuration in several cars from a shared table of four to rows of two seats, all forward facing. Princess Cruises and Holland America Line offer dozens of cruisetour excursions to fit each travelers schedule, budget, and interests. “Travel by rail is an important piece to our guests Alaska cruisetour vacation,”

said Bruce Bustamante, Vice President of Community and Public Affairs for Princess Cruises. “Our partnership with the Alaska Railroad is ongoing and remains critically important to HAP Alaska operations.” The maintenance and expansion of the rail is one of HAP Alaska’s top priorities, and its preservation is vital to keep tourism growing in the Last Frontier as visitors continue to explore this great land by sea and rail.

Anchorage Chamber of Commerce | 15


chamber advocacy

2015

LEGISLATIVE PRIORITIES natural gas, hydroelectric and wind,” Erkmann said. Last year’s member priorities included successful efforts to protect oil tax reform legislation and reducing long term liabilities such as the state’s $12 billion unfunded pension shortfall. During the 2014 legislative session, Gov. Sean Parnell paid down the amount by $3 billion, and in August the voters in Alaska supported keeping the current oil tax reform policies in place. Below are the Anchorage Chamber of Commerce member priorities for 2015:

Stable Energy Supplies:

Anchorage needs a stable supply of diverse energy sources.

With SB 21 (oil tax reform) now the wish of Alaskans, the oil and gas industry has exploded with activity on the North Slope. Over 90 percent of Alaska’s budget comes from oil production that has been declining dramatically. Already, over $10 billion in additional investments have been announced, and more is expected. In April of 2014, the Anchorage Chamber’s Cook Inlet Energy sub-committee released the first comprehensive study on Cook Inlet natural gas usage and the cost implications of alternative energy sources. “What we are seeing is that there is no better consumer cost option than the continued production of natural gas from Cook Inlet,” stated J.R. Wilcox who chaired the sub-committee. Meanwhile projects like the Alaska LNG, Port of Anchorage, the Susitna-Watana Dam along with repairing existing roads

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and transportation corridors have emerged as favored business community priorities.

Health Care/Cost Changes: State lawmakers need to take substantive measure to limit the uncertainty and rising costs of health care to business.

Since the passage of the Affordable Care Act in 2009, businesses have consistently struggled with the changing regulations, deadlines and cost implications. In a private briefing to Anchorage Chamber members, Jeff Lundgren, the chief health care lobbyists with the U.S. Chamber of Commerce, laid out his predictions for attempts to amend the ACA. There will be no major changes to ACA in the next two years but there might be some bi-partisan movement on repealing the medical device tax and the Cadillac tax that is scheduled to begin in 2018. The Cadillac tax on premium health plans is worrisome, because it does not take into consideration of high cost states like Alaska where many plans are already close to exceeding the threshold, which would mean an additional tax of 40 percent. Lundgren said that 2016 presidential politics will begin to envelope the health care debate. Republicans considered possible presidential candidates are still trying to come up with their health care proposal. “They have the repeal part down, just not the replace part,” Lundgren told a room full of chamber members. There are also a lot of concerns are surfacing from business about the reporting re-

Photo/Courtesy/Anchorage Chamber of Commerce

Each fall, the Anchorage Chamber of Commerce surveys its members to determine their legislative priorities and their top infrastructure projects. In September, 250 companies responded to our survey and the Anchorage Chamber’s legislative committee has adopted their top five priorities, and issued statements of support to inform policy makers of how these issues impact the Anchorage business community. “This year we saw a shift in some of our member’s priorities,” said Randy Cunningham of Kleb’s Heating and Mechanical, and the legislative committee chair. “Our members are showing a growing concern over the costs and changes associated with health care reform, and they would like the focus of infrastructure improvements to be centered on repairing and maintaining our existing roads and bridges.” The yearly legislative priorities as identified by Anchorage Chamber members are folded into the chamber’s legislative advocacy program. These issues become the foundation on which the legislative committee build’s its advocacy efforts around in meetings and testimony with lawmakers. Committee Vice-Chair Sarah Erkmann of the Alaska Oil & Gas Association noted the change in how chamber members view energy priorities since Alaskan voters have formally blessed oil tax reform legislation. “Historically Anchorage Chamber members have identified declining production as their top energy priority, but now that oil tax reform working, they want a broader more stable supply of energy which includes


The Anchorage Chamber’s Legislative Committee has adopted the top five priorities of the more than 250 member companies who responded to our survey, and issued statements of support to inform policy makers of how these issues impact the Anchorage business community

quirements and meeting the mandates. IRS reporting forms for health care rules are still in draft, creating significant uncertainty. Employers are worried that due to the way the data must be reported, they could be liable at the end of the year for a “true up,” cost, if there employees have received increases in pay, therefore pushing them over the income threshold to qualify for subsidies. One of the biggest hopes for the business community is the possible change of the definition of what is considered full time equivalent (FTE). Currently employees who work 30 hours a week or more are now considered FTE’s for the purpose of determining who falls under the ACA requirements. In response to the confusion the ACA is causing, plans called “Skinny Plans,” are emerging as a favorite of employers, which are inexpensive but only cover preventative care. These are made possible through a loophole in the current ACA legislation, but Lundgren stated there is consensus the loophole will be closed in the near future. In 2014 the Anchorage Chamber of Commerce board of directors passed a resolution supporting the expansion of Medicaid, based on data that shows it would increase access to health care and mitigate cost shifts to private employers.

Workforce Development/ Education:

State lawmakers should use relevant data and industry input in determining how to improve workforce/education outcomes.

Over the last two years the Anchorage Chamber has made workforce development and education a top priority. During that time, the committee has done groundbreaking work to determine the skills necessary to make sure every student is college or career

ready when they graduate high school. As a key participant in the 90% by 2020 initiative, the Anchorage Chamber has been a leader in promoting better Anchorage public school outcomes. In January 2014, the Anchorage Chamber in partnership with the National Education Association and the United Way released the first comprehensive study of student learning and performance challenges. The study surveyed 1,200 educators throughout Alaska and 750 Alaskan households to chart their feelings on the current state of education in Alaska. Many of the suggestions that have emerged from the Anchorage Chamber’s education work include education officials sharing data and promoting community solutions. The Department of Education and Early Development (DEED) should be oriented to incent and develop the 90% by 2020 approach in communities throughout the state. DEED’s role in helping set the overall benchmarks for achievement and then facilitating the processes to get there rather than just setting standards and administer grants, would improve student outcomes. DEED should focus on establishing goals to measure success while leveraging the good work being accomplished by education non-profits.

Affordable Housing:

Local and state agencies should collaborate with local non-profits to address the significant housing shortage in Anchorage.

In a recent survey, 58 percent of businesses polled said the price and quality of Anchorage’s housing affected their ability to recruit or retain employees. The averagepriced single-family home in Anchorage is $347,000. To afford that, a household must earn at least $85,000 per year. Between 2008-2012, median household income for Anchorage renters increased by 4.7 percent. In that same period, the median cost for an Anchorage rental increased by 13.7 percent. One-half of Anchorage renters spend 30 percent of their income on housing. One in five spends 50 percent. This means many families may not have enough money for food, childcare, transportation, utilities or other purchases that help grow the economy.

Workers in 21 of the 25 most common jobs in Anchorage cannot afford a twobedroom apartment. Workers in 18 of these jobs cannot afford a one-bedroom rental apartment. Builders and developers face a 25 percent to 50 percent gap in what it costs to develop multi-family housing compared to what the majority of Anchorage renters can afford to pay. To break the current housing gridlock in Anchorage, Housing Anchorage, a broad set of cross-sector partners, have come together to strategically spur the development/redevelopment of market-based housing stock affordable to Anchorage’s current and future workforce. To bolster this effort, local and state governments need to assist in the goal of increasing housing stock by leveraging the tools state agencies like Alaska Housing Finance have at their disposal, and adopting locally driven tax incentives for developers to lower construction costs.

Sustainable Budgeting:

State lawmakers should adopt sensible spending adjustments to promote a balanced and sustainable budget.

The State of Alaska depends on oil revenues to pay for over 90 percent of the state’s annual budget. Oil revenues pay for everything from courts and corrections, to transportation and education. On July 1, the beginning of the current fiscal year, Alaska North Slope crude sold for about $111 per barrel. By Dec. 1, the price of oil had dropped to $75 per barrel, a decrease of over 30%. The dramatic shift in the price of oil on Alaska’s revenue picture is comparable to North Slope production dropping 40% since the beginning of the fiscal year. This year the legislature projects to spend roughly $6 billion on government services. If the price of oil maintains its current price per barrel range, the state’s expected revenue will cover only half of the state’s budgeted obligations. While the state has over $10 billion in savings, a long term depression of oil prices could mean the state’s savings would be liquidated in less than five years. State lawmakers should begin work on a long range fiscal plan that protects core government services, and provides a blueprint for Alaska’s fiscal future. Anchorage Chamber of Commerce | 17


tourism Visit Anchorage’s Tania Hancock assists Jono Archer with the final details on Alaska itineraries. Archer’s U.K. based tour company is developing six Alaska departures for 2015 – five summer arrivals and a brand new winter tour that will coincide with the start of the Iditarod. Hancock and Archer met in October at the World Travel Mart in London.

‘Quiet’ Months Ensure ‘Alaska’ is the Word Travelers Hear Visit Anchorage

Ahhh, the easy life. Now that all the summer travelers are gone, those of us in tourism have a chance to kick back and enjoy a few months of quiet… Oh, if only it was true! I always chuckle when someone remarks about how calm it must be in the “off season.” For many of us in tourism, fall and winter are just as busy, or in some cases busier, than summer.

Conventions Fill the Shoulder Season While the bulk of leisure visitation is concentrated in the summer months, there’s another type of traveler that plays a very important role outside of summer: the convention delegate. Meetings and conventions fill hotels, keep the convention centers busy and infuse cash into hundreds of other businesses in the shoulder season. In recent months, we’ve hosted large groups including the Alaska Federation of Natives, the National Indian Education Association and the Scoliosis Research Society, not to mention many, many other state and local meetings. The smaller in-state meetings don’t always draw a lot of attention, but they do provide a significant portion of our city’s convention business. Regardless of size, there is a ton of work that goes into attracting a meeting to our city in the first place. It’s really the culmination of a long-term partnership between meeting planners, the staff here at Visit Anchorage,

and business partners such as hotels and the convention centers. Even after the busiest of the fall convention season ebbs, coordinating the details for groups with meetings in the next year is going full bore. We’re also vetting the meeting planners and organizations we’ll pursue for future years. You can say with confidence a handshake that happens in the next few months will be the first touch that leads to a meeting we welcome to town in 2019.

Trade Development We also spend the first months of the year introducing Southcentral Alaska to a new crop of travel agents, tour operators and consumers. In an average year, we train nearly 6,000 agents and operators on Southcentral Alaska travel product. Half of these agents are trained in the first three months of the year. It’s important to get in front of these agents early, before they enter the busy season when many of their own clients will be booking travel. These agent training sessions often occur in the free hours surrounding consumer travel expos in key markets and around the alphabet soup of trade shows. The American Bus Association, National Tour Association and IPW all bring days packed full of appointments with tour operators considering new Alaska product or exploring options for expanding existing offerings in Southcentral Alaska. Mix all these consumer, agent and tour operator events together in a big market for Alaska travel, and you can see we call

18 | advancing anchorage magazine | Winter 2015

them sales blitzes for a reason.

Guide Fulfillment Copies of our 2015 Official Guide to Anchorage are speeding to potential travelers. You can pick up the visitor guide around town, but most of these guides are sent straight to consumers during the planning season as part of our direct mail program or are distributed at travel shows. Some wouldbe travelers request the guide from us, and many more guides are sent to qualified potential visitors identified through the state of Alaska’s own tourism marketing efforts. Why the emphasis on advanced fulfilment? People spend a surprising amount of time reading the guide, and some even bring it with them when they do visit. It can lead a traveler to spend more time in Anchorage than was initially planned, or add activities they didn’t know about. According to research conducted by Destination Analysts, every guide sent to a qualified traveler results in a $66 return on investment. Tourism doesn’t ever really stop, though we do shift gears. You may not see as many visitors on the streets right now, but the work to get them to Anchorage this summer is already in full swing. It’s easy to imagine that a place as special as Alaska sells itself. And while we’re certainly lucky live here and share our home with potential travelers, a tremendous amount of time and energy go into these “quiet” months to make sure tours, ships, hotels and restaurants are busy for another year.

Photo/Courtesy/Visit Anchorage

By Jack Bonney


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member spotlight

An Energy Conservation Company Oct. 1 marked Automated Laundry Systems & Supply’s 34th year in business. When owner Dick Wells founded the company in 1980, his vision was to provide “Complete Laundry Room Solutions” throughout the state of Alaska. As a full line distributor, representing industryleading manufacturers and technologies, he has accomplished that goal. Along with his partners Kim Foust and Kalvin Young, the company has reached beyond Alaska’s borders and built a team of knowledgeable professionals that serve the commercial and industrial laundry industries, coin-operated laundries and dry cleaners. Over the years, ALS&S has expanded products and services to include facility design and consultation, laundry and dry cle aning equipment, energy-saving ozone and reclamation equipment, parts, service, supplies, and Cointronics; a shared revenue program. When you think about it, laundry is everywhere. They have found that “laundry” is something folks take for granted and they work hard each day to provide value to their many customers. Clients include businesses from the hospitality, healthcare, education and natural resources sectors, just to name a few. In 2008, ALS&S brought ozone tech-

Automated Laundry Systems & Supply was founded by Dick Wells, center, in 1980. Behind him are his business partners Kim Foust and Kalvin Young. The company now has nine employees and 179 years of combined industry experience.

Keeping Al aska Green & Clean nology to the commercial laundry industry with Articlean. As a natural oxidizer, bleach is eliminated from the wash cycle. The way it works is during the wash process: ozone is injected in the wash cylinder, where it cleans and sanitizes in cold water, reducing hot water consumption by as much as 95 percent, lowering energy costs, and improving the quality of the finished products. To date, the company has installed more than 70 ozone laundry systems statewide. As a company dedicated to providing GREEN solutions, Automated Laundry Systems & Supply offers chemical-free cleaning with the Tersano ozone technology and unique CPI microfiber cleaning systems. The patented Lotus® PRO High Capacity Unit (Hi-Cap Unit) turns ordinary tap water into the world’s most effective chemical-free sanitizing and cleaning system by infusing the water with ozone. Liquefied ozone created by the Hi-Cap Unit is completely safe, reverting back to plain oxygen and water in 4 – 8 hours. O₃ kills viruses and bacteria on contact, eliminates odors, stains, mold, mildew, and other contaminates on any hard or soft surface. Not only does the Hi-Cap Unit reduce the exposure of harsh chemicals to your em-

20 | advancing anchorage magazine | Winter 2015

ployees, liquefied ozone can be used in your existing auto scrubbers, mop buckets, spray bottles, and carpet extractors. Another unique service Automated Laundry Systems & Supply provides is Cointronics: a shared revenue program that allows companies to utilize state-of-the-art coin laundry equipment with no upfront cost or long-term service commitment. Cointronics provides “laundry equipment” peace of mind for businesses such as apartments and hotel guest laundries. ALS&S is a Veteran-Owned Small Business with 19 employees and 179 years of combined industry experience. As an Alaskan owned business with cold climate experience, they know what it takes to do business statewide. From the Beaufort Sea to the Gulf of Alaska, they are familiar with the limited resources, cold environment, and installation challenges some communities face. The company’s seven factorytrained service technicians are willing to travel by float plane, snow machine and dog sled, whatever it takes to get to the jobsite. Speaking of reaching beyond our borders, they provide technical support for the cruise line industry in Alaskan waters, the Caribbean Sea and the Atlantic Ocean. The com-

Photos/Courtesy/Automated Laundry Systems & Supply

Automated Laundry Systems & Supply


pany is currently providing laundry equipment, parts and, support in the Antarctic, as well. From their headquarters in Anchorage, the company provides sales, technical support, warehousing, shipping and receiving, integrated computerized accounting, and inventory control. In 2006, they purchased a new facility with 3,200 square feet of professional office space and 5,500 square feet of high-cube warehouse space. As a collector of vintage irons, Dick welcomes you to stop by and see how ironing used to be done. Inspired by Providence Hospital in the early 1980s, Automated Laundry Systems & Supply

began their involvement in community giving. They know the importance of being a good neighbor and strive each day to make a difference in the lives they touch. Throughout the years, the company has gained national, statewide and local recognition, and many industry, community, safety, and environmental awards. They are the recipient of the 2012 ALPAR Business Recycler of the Year and in 2011, earned their Green Star Award certification. The company is a proud supporter of the Anchorage Chamber of Commerce, and works each day to make Anchorage a great place to live, work and play.

ECONOMIC ENGINE Ted Stevens Anchorage International Airport (ANC) is an important contributor to Alaska’s economy and a critical link between Alaska communities, U.S. and international destinations. • 1:10 Anchorage jobs is directly or indirectly related to ANC

• Less than 9.5 hours from 90% of the industrialized world

• $8 of every $10 spent with Alaska’s private sector

• #2 in the country for landed cargo weight

265 operating businesses

• World’s busiest and largest seaplane base

Ted Stevens Anchorage International Airport | (907) 266-2119 | www.AnchorageAirport.com

13-ANC-0788 PRINT-Economic Engine-Anchorage Chamber Directory_3B_bc.indd 1

Anchorage Chamber of3/17/14 Commerce | 21 10:40 AM


industry update

etting G Connected

Demian Volies, Alaska Vice President for Sales and Operations with his family at Verizon Center’s grand opening.

Listening and Hearing

Never before have Alaskans relied so much on their mobile devices. Whether it’s navigating to a favorite fishing spot, texting photos of a school performance, or calling friends and family to catch up, wireless networks connect Alaskans every day in ways that were unthinkable just a few short years before. The telecommunications industry in Alaska has made great strides over the last decade, investing in upgrades and adaptations to keep up with the evolving technology. Alaska’s rugged terrain, extreme weather, and remote locations can mean high costs. Alaska is now home to two national wireless carriers, along with a handful of local companies. As competition increases, companies are seeking innovative ways to improve service and set themselves apart. Often a few years behind on the technology curve, Alaska is now leading the way. With the Verizon rollout, Alaska has the first network in the nation to feature 100 percent advanced calling. This new technology provides high-definition voice clarity, along with seamless video chatting that doesn’t require Wi-Fi, allowing users to move between voice and video with a single tap.

“We heard you, Alaska.” It is a refrain at the end of the Verizon Wireless commercial announcing cell service in the Anchorage and Alaska market. It is also a message that the wireless and technology leader has used while developing its voice in the Last Frontier. Verizon listened to Alaskans before opening its stores, and that is a key component in every aspect of the wireless giant’s introduction to the 49th state. “We opened our ears and took notes in Alaska for more than three years before our network went live,” said Scott Charlston of Verizon’s public relations and philanthropy team. “It became really clear that this place is different, and that we needed a unique Alaska approach.”

A Block Party The Verizon launch on Sept. 19, 2014, coincided with the release of Apple’s iPhone 6 and 6 Plus, and several locations opened their doors with plenty of Alaska spirit. The Anchorage store at Tikahtnu Commons took the celebration into the parking lot with food trucks and a coffee

22 | advancing anchorage magazine | Winter 2015

cart, entertainment and a heated technology tent. Along with an in-house DJ, photo booth, face painting and balloon artist, the tent featured NFL Mobile, Verizon’s exclusive NFL streaming service, workout equipment that syncs with Verizon products and the latest Xbox games. “It was really important that we offered everyone a one-on-one experience with a Verizon team member in the store, but we knew that might require long wait times. No one likes to wait, so we made sure to keep customers fed, warm and caffeinated,” said Demian Volies, Alaska vice president for sales and operations. A ribbon cutting ceremony, comments from Anchorage Chamber President Andrew Halcro and Mayor Dan Sullivan, and Athabascan dancers from the Alaska Native Heritage Center kicked off the first day, along with a big thank you from Verizon Pacific NW/Alaska region President Bobby Morrison.

Building Community “Alaskans want more than a storefront — they want a company investing in their community,” said Charlston. “Being a good

Photos/Courtesy/Verizon

By Verizon Wireless


corporate citizen means sharing our success locally to make a real difference.” At a few pre-launch store tours, Verizon continued its work to curb domestic violence by donating $10,000 to Abused Women’s Aid in Crisis, an Anchorage women’s shelter. Verizon’s HopeLine program turns used cell phone donations into tangible support for domestic violence shelters nationwide. In Alaska, HopeLine will help address one of state’s biggest social problems. Verizon also works to keep students involved in science, technology, engineering and math. Central Middle School in Anchorage received a $50,000 Verizon Innovative Learning Schools grant to educate teachers on how to use new technology in the classroom. Alaska middle and high schools are eligible for the Innovative App Challenge grant competition, plus a new technology opportunity for schools in underserved areas.

A Network Engineered for Reliability Verizon spent more than three years investing in infrastructure to prepare for the launch. “Having our own network in Alaska allows us to control two things that are very important to us — quality and reliability,” said Voiles. “We’re committed to having the most reliable network nationwide, and we heard from employees and customers who travel to Alaska and roam on other networks that they weren’t getting the quality they’d come to expect. We are now delivering on that promise to Alaskans.” Verizon engineered an all-new network with Alaska’s unique challenges in mind. “We build our network facilities and our towers to withstand power outages, blizzards and wind storms,” said Voiles. “Extreme weather means it’s even more important that the network has back-up

generators and batteries at nearly every cell site. Preparing for the worst puts us in a better position during a power outage.” The Anchorage network also features what Verizon calls the most advanced mobile switch center in the nation. The “brain” of the wireless network is located in Midtown Anchorage. This command center is designed to handle storms, quakes and heavy wireless traffic. “It’s a contrast to many of the aging wireless switch facilities that exist in the state,” said Voiles. Early returns on Verizon’s investment in Alaska have been significant. Stores are busy and sales are exceeding expectations. “We’ve been working hard to bring this network to life. This has been home to me and my family for more than three years, and I am proud to be a part of Verizon’s launch in this great state,” said Voiles.“To finally see customers using Verizon phones on a Verizon network — well, my grin was pretty big.”

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Anchorage Chamber of Commerce | 23


health & wellness By Julie Taylor CEO, Alaska Regional Hospital Most health care conversations start with the challenges: a rapidly changing market, the daunting task of preparing for the future, steadily increasing numbers of uninsured, an aging population that is placing pressure on the health care system, managing chronic diseases, escalating costs of treatment, and lack of access to preventative care, to name a few. This is a short list — especially in Alaska. Alaska ranks almost last in the nation for the ratio of health care providers to patients needing care, further complicated by the fact that most of these providers are in Anchorage and Fairbanks, not in remote

locations where many Alaskans reside. Recruitment and retention can also be problematic, so filling the void will be a challenge for years to come. Added to the list is the small number of health insurance companies willing to provide coverage here. The overall population is strong, though once Medicare, Medicaid and Alaska Native Medical Center patients are removed from the total, the risk pool is small compared to larger markets, which drives up the cost of insurance premiums. Surviving in the industry during this time of unprecedented change requires creativity and a new way of looking at things. Providers must figure out how to do more with less without reducing quality or negatively impacting health outcomes. Striking a balance between cost containment efforts and value enhancement strategies becomes a daily exercise for all health care executives.

Different Solutions for Different Needs Between the growing number of uninsured and underinsured, and the everincreasing cost of health care, many Alaskans struggle to find affordable insurance plans. Even our senior population, who are insured, find themselves on the outside of primary health care services because of the limited number of providers willing to accept Medicare reimbursement. At Alaska Regional Hospital, we are demonstrating our commitment to securing services for the senior population in our community by recently acquiring the Alaska Medicare Clinic in South Anchorage. The new Alaska Regional Senior Health Clinic secures access to primary care for seniors and ensures a comprehensive approach to health and wellness for this underserved population.

Photos/Courtesy/Alaska Regional Hospital

Alaska Regional is investing $50 million in hospital renovations to prepare for the meeting the state’s growing healthcare needs.

24 | advancing anchorage magazine | Winter 2015


We are also completing a $50 million renovation, expected to be completed next year, which includes aesthetic improvements and maximizes workspace efficiency. Having access to primary care services is critical to our success in getting a handle on the cost of health care. Moving from a reactive approach to disease, toward a proactive approach, to maintaining and improving health, can save millions of dollars for the state annually and it starts with primary care.

Managed Care: To Be Or Not To Be? The lack of managed care in Alaska has pros and cons. Recipients have direct access to specialists and limited requirements for pre-authorizations for services. This freedom is a luxury rarely seen in the Lower 48 States, but it comes with a price. Without a way to provide structure around health care decisions and means of evaluating appropriateness of care, the chances of ensuring a less expensive but equally effective approach to treatment can easily be overlooked, and this drives costs up. What are we willing to pay for and what are we willing to give up in order to get a handle on costs?

ers are better positioned to support their employees’ health while reducing their overall cost of care.

Telemedicine to the Rescue In a state where shortages of primary and specialist care exist, telemedicine is coming more to the forefront as a vehicle to ensure access to health care —especially in remote locations. With 59 percent of the state’s residents in medically underserved areas, finding ways to keep patients in their home communities is critical. Transports to larger cities such as Fairbanks and Anchorage are expensive. The use of telemedicine reduces the number of unnecessary transports and supports the provision of care at home or in the local hospital.

Information Technology at Its Best Information systems that support clinical documentation and coordination of care have become a mainstay in the health care en-

vironment. New and improved versions are coming forward at record speed, and providers need to be on the leading edge of what is current, comprehensive and efficient. To ensure continuity of care and efficiency of services, Alaska Regional is installing a new clinical documentation platform called “Epic,” currently in use at Providence Medical Center. Epic is one of the leading providers of clinical documentation systems, and while it is an almost $8 million investment, it is regarded as the best program available from a hospital and patient care perspective. Imagine being given an iPad to use during your hospital stay to communicate with caregivers and monitor your care plan. This is a core component of Epic. The health care industry is working to help patients have more input into their health care decisions, which starts with education. Arming patients with the tools to make good decisions and resources to complete their own research drives engagement and commitment to following through with plans of care. Lack of follow-through is a common reason behind hospital readmissions, which also adds to the cost of care.

Empowering Patients In the meantime, the industry is looking at other ways of encouraging wellness activities and prevention efforts, and is heading to the workplace for help. According to the World Health Organization, 75 percent of health care costs can be attributed to negative health behaviors. Smoking, obesity, inactivity and poor diet are a few of the precursors that lead to health problems. Blood pressure that goes unchecked can become a stroke and blood sugar left unmanaged can easily turn into diabetes. Both of these indicators can be easily evaluated and managed in the early stages. The best way to avoid complications like these is to get in front of them early with preventative measures. Statewide, companies are offering employee wellness programs such as Alaska Regional’s Health To You (H2U) Works that incentivizes prevention. Through a combination of risk factor assessment, health screening, onsite education and aligned incentives, employ-

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school business partnership

By Cheri Spink Dating back to 1991 when Anchorage School Business Partnerships was just an idea being developed, the Alaska Railroad realized that the skill level of applicants for employment wasn’t meeting the standards they hoped for. Jim Blasingame, representing the Railroad, met with then superintendent Bob Crystal and his assistant Carol Comeau with an offer to provide support to the Anchorage School District. At the same time, Jim Utter, a retired principal, and Ernie Hall, the board chair of the Anchorage Chamber of Commerce, were in the midst of developing the Anchorage School Business Partnership program to encourage the business community to become involved in the education of Anchorage students. The Alaska Railroad jumped on board adopting Government Hill Elementary School as its partner school. There were 20 business

partnerships created that first year and has since grown to include more than 600. Comeau suggested Government Hill School as a partner because it was a Title 1 school in need of assistance and close in proximity to the railroad. After meeting with the principal, Blasingame made a promise to Comeau that the railroad would do everything possible to provide support for the education of the students at Government Hill. “We wanted to plant a seed in the young minds of these students which we wouldn’t see the benefit of what we were doing for some 20 + years when these kids graduated and became adults in the workplace and would want their company to become involved in helping a school much like they experienced as a young child,” he said. “That’s when we would know what we were doing was a success.” They have kept their promise for more than 20 years. To this day, the railroad

26 | advancing anchorage magazine | Winter 2015

sponsors the annual Government Hill back to school picnic with food and volunteers, they also provide volunteers for special events including science fairs, spelling bees and classroom help. They donate railroad tickets and posters for school fundraising. In the past they have given a train ride to the entire school during the holidays and have hosted teacher luncheons to thank the teachers and school staff for their hard work. To the delight of the railroad employees, Government Hill would send their “bell choir” to railroad headquarters and play a holiday concert. The partnership was rewarding for Blasingame who said, “I was asked and agreed to do the annual spelling bee in 2010 by calling out the words to the finalists in that event. It was one of the most rewarding events for me to do and it was one of the last official events I did prior to retiring.” Blasingame and the railroad played another important role in the education of students. As early as 1981 he was tasked to bring to fruition a Tour Guide program at the King Career Center for high school students. The idea was the brain-child of Kelly Campbell and Jackie Lindauer, who wanted to see students get training about Alaska history and then be provided an opportunity to be summer guides on the Railroad. Hiring students was no easy task as the railroad was then owned by the federal government. There were federal rules on hiring minors and a hiring freeze. Also the federal government was in negotiations with the State of Alaska over the sale of the railroad. Lindauer, Campbell and Blasingame did not give up.

Photos/Courtesy/Alaska Railroad Corp.

Alaska Railroad Plays Major Role in History of Anchorage School Business Partnerships


In 1985, when the Railroad was sold to the state, the Tour Guide program began hiring student guides and soon expanded to include Fairbanks North Star School District. Today the railroad and the King Career Center still collaborate on the longstanding Alaska Railroad Summer Youth Employment Program. The program provides on-the-job work experience and application of such curricular areas as Alaska history, cultures, geography, natural resources, flora, fauna and tourism. The railroad has fully funded the program and since the year 2000 have hired 207 students. Graduates of the program have advanced to become college-age tour supervisors, full-time baggage supervisors, managers and even locomotive engineers. It has been 20 years since the partnership with Government Hill began and more than 30 years since the Alaska Railroad Summer Youth Employment program began. They have twice won the School Business Partnership Star award for these partnerships. The railroad has been a trailblazer in education and continues to play a valuable role. The railroad has provided mentoring, resources, training and jobs and provided positive role models for young minds. Our community is the beneficiary of their corporate philosophy to invest now to build a better tomorrow.

The Alaska Railroad and the King Career Center collaborate on the longstanding Alaska Railroad Summer Youth Employment Program, which provides on-the-job work experience and education on areas such as Alaska history, cultures, geography, natural resources, flora, fauna and tourism.The railroad has fully funded the program and since the year 2000 has hired 207 students.

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STEPS to Organizing Your Finances

finance By Do you know your net worth? Or how much you spend each month, and on what? Or how much you can expect from your pension plan or Social Security in retirement? A “no” to most of these questions puts you with the majority of the population who have been too busy with life to get a handle on their finances. Here’s a fivestep action plan to help you take control of your money. 1. Set up a financial filing system either manually or online. Create a personalized filing system by labeling accordion file pockets with broad financial categories. Then label regular file folders with subcategories that fit your situation and file them into the accordion pockets. For example, create a Property & Casualty Insurance accordion file and fill it with a Vehicle Insurance regular file folder. There are also many online apps that will allow you to do all of this electronically. Ask your financial institution if it offers an aggregation service to organize your varied financial assets and liabilities. Many offer these services free as part of their online banking product. Or, you can research products such as Yodlee, Mint, Check and other online aggregation services to find the one that fits your needs best. 2. Gather records. Look through your records to identify missing information. For example, you need an estimate of your Social Security retirement benefits. To request one, visit ssa.gov or call 800-772-1213. Gather copies of your health, disability, life, homeowners, and vehicle insurance policies, and get a copy of your credit report. You can check your credit report — the summary of your credit activity that generates your credit score — from each of the three major credit reporting agencies once a year for free. Always make your requests

from the www.annualcreditreport.com website, the only site sanctioned by the Federal Trade Commission. Or, you can call 877-322-8228. 3. Size up your situation. Add the estimated current value of all assets, including your home, car, personal property, savings, investments, and retirement accounts. Next, add all liabilities, including mortgage, credit card balances, and any other outstanding debt. Then subtract liabilities from assets to figure net worth. Then, make a list of income and expenses by reviewing paycheck stubs, online checking account information or your checkbook register, and credit card statements from the past year. Finally, track spending for a month by saving all receipts or recording cash purchases in a notebook. You also can find a spending plan or money management software program that can help organize spending by category.

4. Chart a course. Set financial goals — longterm and short-term — and figure how much money you’ll need for each. Create a target saving and spending plan that meets needs using your list of income expenses. For a month or more, track actual spending to see how you’re doing, making changes as necessary. 5. Brush up on money management basics. Remember that you have a partner — probably several partners — in helping build your financial success. Ask at your financial institution, or ask a professional financial planner, to take a look at your finances and help you build a road to success. Remember: you are not alone when it comes to tips and tactics you need to achieve financial freedom. Whether you the personal touch of a trusted advisor, or enjoy scanning the web for helpful ideas, take advantage of the many tools out there so you can start answering “yes” to all of the questions posed at the start of this article.

Anchorage Chamber of Commerce | 29


member benefits

Your business just joined or renewed your Anchorage Chamber membership for the upcoming year. You have obtained the key to assist you with your businesses growth and prosperity. The question is, how do I use that key to unlock all of the opportunities I have invested in? 1. Review Your Business Listing Online: Make sure all the information is accurate, including, emails and phone numbers. Your information is placed in the online directory and on the mobile APP for all to see. 2. Get Your Employees Connected: Many times businesses only have a primary contact receiving information. Have all your employees sign up to receive email notices. This will allow your business the opportunity to take advantage of trainings and leadership development opportunities for your employees.

10 Steps to ROI from your Anchorage Chamber membership! 3. Display Membership Logo/Sticker Openly: Studies show that people view chamber membership as a sign of credibility for a business. The best way to show you are a member is to put those items in full view. Download an electronic version for your website or use in print. 4. Attend a Membership Orientation: Best advice, attend one every year. Chambers are always adding new products and services to assist their members. Find out if there is a product or service that will influence your businesses bottom line. 5. Make the Anchorage Chamber an Extension of Your Business: Are you looking for information about a business? Is there legislation that may affect your business? The Anchorage Chamber should be the first call you make when you have a question you need help with.

6. Meet One-on-One with the Anchorage Chamber’s Event Organizer: When having this meeting know what your customers demographic is. A good event organizer will be able to provide you with the best events available for exhibiting and sponsorship opportunities that will promote your business. • Best practice is to secure your participation in advance. This will help you plan each event accordingly with time and money. 7. Attend Regular Meetings: Repetition at events creates an atmosphere of trust among members. People like to do business with people they know and see. Also, remember it is not the size of the event but the relationship building opportunity. Some small events have enormous value. 8. Get to Know the Anchorage ChamContinued on page 31

new members Planet Beach Automated Spa 907-346-7727 | www.planetbeach.com GMW Fire Protection Inc 907-223-4639 | www.gmwfireprotection.com Denali FSP Fundraising Consultants 907 250-8488 | www.denalifsp.com Michelle Toohey Enterprises 907-229-7855 | mtooheyenterprises.com Smiles Dental 907-274-7691 | denalidentalcare.com UAA Center for Corporate and Professional Development 907-786-4938 | www.uaa.alaska.edu/ccpd Alaska Fitness Equipment 907-330-0113 | www.alaskafitnessequipment.com Uber 907-227-8075 | www.uber.com/anchorage Alaska SCORE 907-271-4022 | alaska.score.org

30 | advancing anchorage magazine | Winter 2015

Association of Fundraising Professionals Alaska Chapter 907-250-2530 | afpalaska.afpnet.org/index.cfm Seawolf Athletics 907-786-1211 | www.goseawolves.com YWCA Alaska 907-644-9600 | ywcaak.org Dan Shepard Photography 907-230-2231 | www.dan-shepardphotography.com Assets Printing 907-334-8605 | www.assetsprinting.org Brandy Pennington Real Estate 907-336-7653 | brandypennington.com Tiny Ptarmigan 907-929-8469 | www.tinyptarmigan.com Associated Builders and Contractors ABC of Alaska 907-565-5600 | www.abcalaska.org Estes Express Lines 907-274-0779 | www.estes-express.com


ambassador of the quarter

Advancing a Successful Business Network The Anchorage Chamber’s Ambassador Council promotes membership within the organization while developing and expanding personal business networks. Each quarter, one Ambassador is celebrated for his, or her, above and beyond service to the organization, helping the Anchorage Chamber advance a successful business climate. We are happy to present the honors to Roberta Collier from Dimond Center Hotel this quarter! Roberta Collier joined Dimond Center Hotel in 2008, and also worked briefly at Coastal Television Broadcasting since 2013. Roberta Collier was born and raised in Anchorage. In 2008, she began what was Continued from Page 30

ber Staff: These individuals meet with more business professionals than most people any given day. Knowledge of who you are and what your business provides can make you an easy referral for them. 9. Get Social: Follow Anchorage Chamber on Facebook, LinkedIn or Twitter to find out what best fits you and participate in some of the discussions. Better yet, provide information that makes you the expert in your field. These are great places to promote yourself without making a sales pitch. 10. Provide Input and Answer Surveys: The Anchorage Chamber sends out surveys throughout the year to find out information on how to best serve their members and the community. Take a moment to complete any survey. Your answers can make a difference. These 10 basic steps will make your membership in the Anchorage Chamber flourish, and squeeze all that it has to offer. It’s as easy as following these 10 simple steps, to provide you and your business with a strong return on your investment.

Roberta joined the Anchorage Chamber Ambassador Council in 2012. “The Anchorage Chamber has been my favorite organization for networking, education, and community involvement since then,” she said. “[It] has more than tripled my network since getting more involved, allowing for more meaningful referrals and business-to-business interaction. I’ve built relationships through their events that are irreplaceable.” Roberta has truly invested in her membership. She is always willing to advance the Ambassador Council as well as the Anchorage Chamber’s core values and its mission to advance a successful business climate. Congratulations, Roberta!

Roberta Collier meant to be a temporary job in hospitality and tourism at Dimond Center Hotel, only to stay for several years. “I fell in love with the company and the industry while working in both Operations, Event Coordination, and Sales.” In 2013, she began working at Coastal Television Broadcasting as an Account Executive. “Coastal Television has been an amazing experience, while learning about broadcast television and working closely with other businesses in Anchorage.”

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chamber events

Business After Hours: Thursday, January 15 5 p.m.–7 p.m. Hosted at: American Hyperbaric Center

Member Orientation Wednesday, January 28 11:30 a.m.–1 p.m. Hosted at: Anchorage Chamber of Commerce

Bowl-A-Thon Saturday, February 7 3 p.m.-6 p.m. Hosted at: Center Bowl

Chamber Academy: Dealing with Difficult Situations that Involve People Wednesday, February 11 Noon-1 p.m. Hosted at: Anchorage Chamber of Commerce

Business After Hours: Thursday, February 19 5 p.m.-7 p.m. Hosted at: Buzzbizz Studio

Extraordinary Service & Rapport: How Loyalty and a Good Rapport Ensure Long Term Success Wednesday, March 11 Noon-1 p.m. Anchorage Chamber of Commerce

ATHENA Luncheon Monday, March 30 Noon-1 p.m. Hosted at: Dena’ina Center

Telecom Engineering Project Management Two-way Radio Systems Microwave & Satellite Systems Fiber Optics & Network Cabling FCC Liscensing Tower Construction & Inspection

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Anchorage Chamber of Commerce | 33


around town calendar

Feb. 6 Check ASAA website for game times Bartlett High School 1101 N. Muldoon Road, Anchorage, AK 99504, Website: http://www.asaa.org Alaska’s top grapplers from the largeschool division meet to crown 2015 state team and individual champions. Visit ASAA.org for tournament information.

Multicultural Drumming and Dancing Feb. 14 10 a.m.-5 p.m. Alaska Native Heritage Center 8800 Heritage Center Dr., Anchorage, AK 99504-6100 Local: 907-330-8000 Email: info@alaskanative.net Website: http://www.alaskanative.net Inaugurated in 2001, this annual event brings together the importance of the drum and dance of cultures from around the world. This year, this event will be coupled with the Alaskan premier of Peter Buffet’s piece: Spirit-The 7th Fire: A Journey of Drums, Dance and Song.

Iron Dog Start Feb. 21 Big Lake to Nome to Fairbanks Website: http://www.irondograce.org/ Celebrating the Spirit of the Iditarod, this event presents the dance, story, games, films and visual art of Alaska’s first peoples. Invited guest have included great mushing legends such as George Attla and Emmit Peters.

Fur Rendezvous Feb. 27-March 8 Throughout Anchorage Website: http://www.furrondy.net More than 15 zany events and 100 other activities are found at Alaska’s largest and oldest winter festival, Anchorage Fur Rendezvous. Known locally as Fur Rondy, 2015 marks the 80th year.

Iditarod Trail Sled Dog Race Ceremonial Start March 7 10 a.m. Downtown Anchorage, Fourth Avenue Website: http://www.iditarod.com A field of world-class mushers and their dog teams mush toward the Bering Sea coast through rugged remote mountain ranges and snowcapped forests in the Last Great Race on Earth. The Iditarod’s 1,049 miles of pure adrenaline begin in downtown Anchorage the first Saturday in March.

March Madness: ASAA State Basketball Tournaments March 14 Varies, Check ASAA website for game times. Sullivan Arena and Alaska Airlines Center, 1600 Gambell St., Anchorage, AK 99501 Website: http://www.asaa.org Alaska’s best boys and girls high school basketball teams gather on the hardwood to crown multiple new champions during the ASAA 2015 March Madness Alaska! Visit www.ASAA.org for tournament information, team listing information and game brackets for the 1A, 2A, 3A and 4A tournaments. Calendar courtesy of Visit Anchorage

34 | advancing anchorage magazine | Winter 2015

Top to bottom: Photo/File/The Milepost; Photo/File/AP; Photo/File/The Milepost

ASAA State 4A Wrestling Championships


Anchorage Chamber of Commerce | 35


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