March - 2013 - Alaska Business Monthly by Alaska Business

ICE ROADS ■ OIL & GAS ■ TRAVEL MEDICINE ■ IDITAROD

March 2013

$3.95

Cranes in Construction Essential to the industry Page 72

Special Section: BUILDING ALASKA Includes annual Construction Directory Page 66

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March 2013 TA BLE OF CONTENTS dePArtments

About the cover Cranes are essential to the construction industry. On this month’s cover, STG sets a rotor for one of six turbines the company installed for Unalakleet Valley Electric Cooperative in 2009 with a Kobelco crawler. The “Importance of Cranes in Construction” begins on page 72, and is part of the Building Alaska special section, which beings on page 66.

From the Editor. . . . . . . . . . . . . . . . . . 7 Inside Alaska Business . . . . . . . . . . 8 Agenda. . . . . . . . . . . . . . . . . . . . . . . . . .43 Right Moves . . . . . . . . . . . . . . . . . . . .44 Alaska This Month. . . . . . . . . . . .114 Events Calendar . . . . . . . . . . . . . .117 Market Squares. . . . . . . . . . . . . . .118 Alaska Trends. . . . . . . . . . . . . . . . .119 Ad Index . . . . . . . . . . . . . . . . . . . . . .122

Articles

Cover photo by Jason Sellars, STG Incorporated.

special section

VIEW FROM THE TOP

Building Alaska

12 | Amie Sommer, Owner Tutka LLC Compiled by Mari Gallion

ALASKA NATIVE CORPORATIONS

14 | Sustainable Arctic Communities Securing indigenous peoples’ future in Alaska By Dimitra Lavrakas

Early morning trafﬁc southbound on the Glenn Highway.

ENERGY

20 | Interior Energy Solutions Powering the future of Alaska By Julie Stricker

FINANCIAL SERVICES

26 | Long-Term Commercial Loans Helping businesses capitalize on new opportunities By Tracy Barbour

MILITARY

30 | Alaska Veterans Succeed in Business Enterprising entrepreneurs find markets, fill needs By Joette Storm

Photo courtesy of KABATA

66 | Trends in Construction Project Delivery Morphing methods, changing times By Mari Gallion

82 | Bridge Builders Connecting Alaska with massive projects, regular maintenance By Gail West

72 | The Importance of Cranes in Construction Operating in tough conditions, enjoying the work By Rindi White

88 | Bridge Builders SIDEBAR Tanana River Bridge Steel Girder Q & A

76 | Rebuilding After Disasters

90 | Knik Arm Crossing Essential infrastructure for Alaska By Michael L. Foster 92 | Alaska Business Monthly’s 2013 Construction Directory

www.akbizmag.com • Alaska Business Monthly • March 2013

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March 2013 TA BLE OF CONTENTS Articles

HR MATTERS

32 | Great Leadership The path to great employee retention By Kevin M. Dee

TELECOM & TECHNOLOGY

OIL & GAS

56 | Incentives for Oil and Gas in Alaska Diverging views on generosity, effectiveness By Mike Bradner

TRANSPORTATION

58 | The Evolution of the Ice Road Changing regulations and new innovations minimize impact By Paula Cottrell

VISITOR INDUSTRY

34 34 | Using Data By Ed Arthur

110 | Iditarod Trail Sled Dog Racers Adapt Climate change, the bane of the dog musher By Joette Storm

Photo courtesy of Spartan Offshore Drilling

The Spartan 151 rig, wintering over at Port Graham.

HEALTH & MEDICINE 38 | Travel Medicine Preparing for a healthy trip By Nicole A. Bonham Colby

OIL & GAS

46 | Point Thomson’s Promise At long last, serious work begins on Alaska’s next great oil and gas field By Wesley Loy

OIL & GAS

50 | A Tale of Two Rigs Cook Inlet jack-up rig briefing By Mike Bradner

OIL & GAS

54 | Alaska Oil Policy ‘Maximum Benefit’ By Brad Keithley

Photo courtesy of Cruz Construction

Cruz Construction building an ice road to Badami.

110

Dallas Seavey and his team mushing to victory in Iditarod 2012. 6

www.akbizmag.com • Alaska Business Monthly • March 2013

FROM THE EDITOR Follow us on

Chickaloon

Knik Arm Crossing Vicinity Map

and

Willow

Municipality of Anchorage

Sutton

Roads Highway Minor

Houston

Matanuska-Susitna Borough Roads Major Minor Military Land Park or Refuge

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Susitna

Big Lake Knik

Miles

Vern C. McCorkle, Publisher 1991~2009

SU S ITN A ST AT E

Jim Martin Charles Bell Anne Campbell Bill Morris Tasha Anderson Mary Schreckenghost

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Eklutna

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GAME

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Knik Knik Arm Arm Crossing Crossing Project Project

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Eagle River

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RICHARDSON MIL ITAR Y BA SE

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Anchorage U N T A I N S M O

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T U R N A G A I N

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BUSINESS STAFF

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

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

Chugiak

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

Palmer

Wasilla

Highway

Map: KABATA

Volume 29, Number 3 Published by Alaska Business Publishing Co. Anchorage, Alaska

Major

Build the Bridge Already S

top writing checks for studies and plans. Start writing checks for concrete and steel. It is time for the state to build the bridge across Knik Arm. Since the bridge will be owned by the state, the state should use its own money and build it. Like Henry Springer told me about 10 years ago, “We’re just building a simple pile-supported bridge...A half-billion dollar bridge is not a world class project anymore.” Well, then it was a $500 million project, now that we’ve waited so long, probably double, including access roads. So build the bridge already before another year passes. Take a billion dollars of state money and break ground. Put thousands of people to work. Create a new north-south transportation corridor—it’s a good idea. As the bridge is built, also build a new four-lane divided highway on the Mat-Su side to create access for the thousands of daily drivers using the Glenn Highway every day. Somehow I don’t see the current two-lane blacktop out that way as an ideal roadway for commuters or truckers. Schedule delivery of the concrete and arrange extraction of the aggregates. Buy the steel, get it ordered and on its way to the ports—ship half to the Port of Anchorage and half to Port Mac. Start working from both sides and meet in the middle. Another thing, don’t just make it a two-lane bridge, do it right the ﬁrst time—four lanes, with rails. Also, it was suggested to me that when the bridge is built, it should be an innovative design with a tidal power generator incorporated—another good idea. Line up the heavy equipment and sign the project labor agreements. Make this the next great project. Do it right and do it now. Build the bridge already! Stop writing checks for studies and plans. Start writing checks for concrete and steel. —Susan Harrington, Managing Editor

www.akbizmag.com • Alaska Business Monthly • March 2013

INSIDE ALASKA BUSINESS

Alaska Archives

laska Archives, a provider of information management and data destruction services, achieved National Association for Information Destruction AAA certification for both mobile and plant-based operations. The NAID certification for Alaska Archives is endorsed for paper and printed media, computer hard drives and nonpaper media destruction. NAID is the nonprofit watchdog organization for the secure data destruction services industry. Certification is achieved and maintained through ongoing announced and unannounced audits of service operations at certified facilities and in the field. Audits are conducted by trained, independent auditors, all of whom are accredited by ASIS International as Certified Protection Professionals.

Arctic Slope Regional Corp.

n late March, ASRC’s director of communications will head to Kathmandu and attempt a climb of Mount Everest, the tallest mountain on Earth at an elevation of 29,035 feet. Identifying a need for the children of the North Slope, Ty Hardt is using the climb to raise money for the Boys & Girls Club of Barrow, as well as other clubs statewide. The Boys & Girls Club of Barrow is located inside Ipalook Elementary School and has more than 130 members, out of the more than 800 kids from Ipalook and Eben Hopson Middle School. “Our mission has always been to help enable our young people, and this unique fundraising effort will help us to extend our reach,”

Compiled by Mari Gallion

says Alana Humphrey, CEO of Boys & Girls Clubs Alaska. “We will be following Ty on every step of his Mount Everest expedition, and wish him the very best.” The expedition and fundraising effort is being called Going to Extremes.

General Communication Inc.

eneral Communication Inc. (NASDAQ:GNCMA) announces cloud computing services for business customers. Available today, GCI Cloud Services represents a new generation platform, enabling businesses to rapidly provision and deploy computing resources and access data applications anytime, anywhere. Moving into the GCI Cloud enables easy access to virtual hardware and software through an Internet connection which allows businesses to pay for their IT resources at a low monthly rate – rather than investing in IT infrastructure such as servers, hard drives and software application licenses. GCI Commercial Services recently opened a 9,000 square-foot state-of-theart data services center to support the emerging trends in virtualized servers and cloud-based systems. GCI’s Data Services Center brings data-center technologies and services together by offering space, power, and bandwidth in a redundant and secure location. GCI’s scalable data center also allows businesses to use only what they need when they need it. This highly adaptable system lets GCI provide services that can quickly and efficiently support any growing business’s needs.

Carlile Transportation Systems

arlile Transportation Systems announces the opening of its very own employee health clinic. The Carlile Transportation Systems Employee Clinic is located on the Alaska Regional Campus at 2751 DeBarr Road in Anchorage and is managed by H2U. The clinic partnership with Alaska Regional is designed to make it easier for employees to get well and stay healthy, and is dedicated to serving Carlile employees and their families who participate in the company health plan. Employees will receive personalized attention, quality care, spend less time in waiting rooms and save money with free office visits. Board certified nurse practitioners will care for employees with common illnesses such as allergies, ear infections, strep throat, minor infections and rashes. Additional services include blood pressure checks, flu diagnoses, Xrays, lab work and the administration of various vaccines. As an added convenience, employees can have prescriptions written by the nurse practitioner filled at the clinic.

The Bristol Alliance of Companies

he Bristol Alliance of Companies has announced the opening of its newest office in Golden, Colo. This central location in the Denver area will give Bristol an expanded presence in the western, Rocky Mountain and Great Plains states, and will allow both

Your Project, Our Responsibility. 24/7 Service Pacific Pile & Marine has a robust fleet of marine equipment including our recent addition of a 600-Ton 4600 Ringer.

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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

www.akbizmag.com • Alaska Business Monthly • March 2013

INSIDE ALASKA BUSINESS current and future clients in the region to experience the customer-focused client service for which Bristol is known. The office will accommodate approximately 30 employees, and will offer all of Bristol’s integrated services: civil and structural engineering, civil and vertical construction, environmental remediation, fuel systems, and range and unexploded ordnance response services. This will be the group’s seventh branch office in the United States.

Pentex Alaska Natural Gas Co.

entex Alaska Natural Gas Co. LLC and its subsidiaries, Fairbanks Natural Gas LLC and Polar LNG LLC, submitted a comprehensive response to the Alaska Industrial Development and Export Authority Request for Letters of Interest for a North Slope Liquefied Natural Gas Plant. The RFLOI issued by AIDEA and endorsed by Gov. Sean Parnell provides the opportunity for a public-private partnership between Pentex and the State of Alaska, resulting in abundant, lower cost, environmentally friendly natural gas and propane to the Interior and other areas of Alaska. Pentex’s comprehensive turnkey proposal addresses the acquisition and liquefaction of natural gas and propane on the North Slope, includes the transportation of LNG and propane to the Interior, storage and vaporization of the LNG, and the transmission and distribution of natural gas to homes, businesses and industrial users. The Pentex Proposal projects natural gas rates delivered to customers’ homes

Compiled by Mari Gallion

and businesses in Fairbanks to start at $15.98 per thousand cubic feet in 2015 and rapidly decline to $13/MCF as the natural gas distribution system expands.

Alaska Communications

laska Communications has introduced hosted Voice over Internet service for small businesses in Anchorage. The new cloud-based phone system will help businesses increase sales, reduce costs and streamline operations. Alaska Communications Voice over Internet includes business-class applications for mobile voice management and is available with broadband Internet service with unlimited data and no overage charges. By combining voice and data networks, businesses also streamline operations, reduce operating costs and increase productivity. Popular features of Alaska Communications Voice over Internet include: Alaska Voice Mobile App for smartphone, tablet and PC; customer webportal administrator for do-it-yourself changes; music on hold; premium auto attendant; simultaneous ring; visual voicemail.

Alutiiq Pacific LLC

ASA awarded a protective services follow-on contract to Alutiiq Pacific LLC of Anchorage, Alaska, which consolidates services at NASA’s Goddard Space Flight Center in Greenbelt, Md., and its three affiliated facilities in the United States. The contract, valued at about $65 million, sets a firm fi xed-price for core

services and includes an indefinite-delivery, indefinite-quantity component for additional services as needed. The phase-in period began Feb. 1 and full performance begins April 1 for Goddard; NASA’s Wallops Flight Facility on Wallops Island, Va.; and NASA’s Goddard Institute for Space Studies in New York. Performance at NASA’s Independent Verification and Validation Facility in Fairmont, W.Va., begins Oct. 1. The contractor will provide physical security and armed uniformed services, patrol operations, K-9 services, emergency medical technicians, identification management, badging and access control. Additional services include security investigations, evidence collection, emergency management, incident command and response, continuity of operations, electronic security systems, locksmith services and document control.

Alaska Airlines

laska Airlines announces new partnerships with Aeromexico and Emirates airlines. Alaska Airlines and Aeromexico, Mexico’s global airline, have announced their new frequent flier and codeshare agreement to connect each other’s networks and bring more options to travelers flying between Mexico and several cities along the West Coast and Alaska. Starting in early 2013, travelers can accrue miles when they fly on Alaska Airlines’ network across the United States, Mexico and Canada, and Aeromexico’s 80 destinations throughout Mexico, the United States, Canada, Central and South America, Europe and Asia. Miles flown on Aeromexico will count toward quali-

Your Project, Our Responsibility. 24/7 Service

Pacific Pile & Marine has a robust fleet of marine equipment including our recent addition of a 600-Ton 4600 Ringer.

www.pacificpile.com I (907) 276-3878 276-3873

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

www.akbizmag.com • Alaska Business Monthly • March 2013

INSIDE ALASKA BUSINESS fication in Alaska’s Mileage Plan MVP elite-level program. Frequent fliers will be able to redeem miles for award travel on Aeromexico beginning later in 2013. Alaska Airlines and Emirates announced enhanced frequent flier award benefits, enabling members to now redeem awards for travel in each other’s programs. Members of Alaska Airlines’ Mileage Plan and Emirates’ Skywards programs have already been able to earn miles on a reciprocal basis since the airlines’ partnership began in March 2012.

US Agriculture Department

SDA finalizes new microloan program, offering microloans up to $35,000 aiming to assist small farmers, veterans and disadvantaged producers. The program from the U.S. Department of Agriculture is designed to help small and family operations, beginning and socially disadvantaged farmers secure loans under $35,000. The new microloan program is aimed at bolstering the progress of producers through their start-up years by providing needed resources and helping to increase equity so that farmers may eventually graduate to commercial credit and expand their operations. The microloan program will also provide a less burdensome, more simplified application process in comparison to traditional farm loans. Producers can apply for a maximum of $35,000 to pay for initial start-up expenses such as hoop houses to extend the growing season, essential tools, irrigation, delivery vehicles, and annual expenses such

Compiled by Mari Gallion

as seed, fertilizer, utilities, land rents, marketing and distribution expenses. As their financing needs increase, applicants can apply for an operating loan up to the maximum amount of $300,000 or obtain financing from a commercial lender under FSA’s Guaranteed Loan Program. USDA farm loans can be used to purchase land, livestock, equipment, feed, seed, and supplies, or to construct buildings or make farm improvements. Small farmers often rely on credit cards or personal loans, which carry high interest rates and have less flexible payment schedules, to finance their operations. Producers interested in applying for a microloan may contact their local Farm Service Agency office, which can be found online at fsa.usda.gov.

SimplySocial

s SimplySocial continues its growth as a global company with roots spanning from Romania to Alaska, the company announces its new distribution relationship with Dittman Research and Communications. Founded in 1969, Dittman is one of the nation’s oldest and most successful opinion and market research firms. With a laser focus on accuracy and the right blend of art and science—they deliver winning strategies for businesses, organizations, and campaigns. SimplySocial CEO Tyler Arnold says, “We are thrilled that such an established Alaskan brand is as excited about social media as we are.” Dittman owner Matt Larkin saw a great opportunity to collaborate with SimplySocial, recognizing the company was doing many creative things in ar-

eas in which he was also interested. Organizations are now recognizing the importance of establishing themselves on social media, but most do not know where to start or how to maintain this presence. Larkin’s face lights up as he talks about Dittman’s new venture in this industry. “Over the past two years we’ve been hearing from our clients that they need help in this area and we are happy to now provide a solution for them. Creating consistent and relevant content is the biggest problem most express when describing their challenges with social media. This is why SimplySocial is such a great company to partner with,” says Larkin. There are a lot of opinions being expressed on social media. By getting involved in these conversation and having a platform to control and monitor them, Dittman will have a deeper understanding of how their clients brands are being talked about online. “Right now we are focusing on assisting our clients with building a social media presence. Once done, we can monitor how people are talking about their brands.” With this information, Larkin says, they will be able to better assist clients with brand messaging. Arnold says, “We see potential for a whole new area of communications technologies that we’re just beginning to scratch the surface of. With Dittmans’ knowledge of data and established relationships around the state we are looking forward to bringing a new era of accountability to social media that hasn’t really yet existed. SimplySocial is thrilled to have Dittman on board and we look forward to collaborating together on future projects moving forward in 2013 and beyond.” 

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www.akbizmag.com • Alaska Business Monthly • March 2013

View from the Top

Compiled by Mari Gallion

Amie Sommer, Owner Tutka LLC

utka LLC was founded in 1999 as Professional Services & Safety Instruments LLC (dba PSI Environmental & Instrumentation LLC) by two sisters, Amie Sommer and Crystal Nygard, to provide onsite gas detection installation, repair and sales to the drilling companies on the North Slope. Tutka’s revenue grew from $20,000 in their first year of business to more than $2 million in 2003. In 2011, Nygard departed the company to start other business ventures, and Amie and her husband John Sommer are now the co-owners of Tutka LLC. FROM CONCEPT TO COMPLETION: I started work in

the environmental field as a hazardous waste technician and continued my career while in college as a project manager/ environmental scientist. When I was completing my bachelor’s degree in environmental science at Alaska Pacific University, part of my senior project was to develop a business plan. That plan became Tutka LLC.

AN EMERGING PARTNER: My husband John and I were ex-

pecting our son in 2008. We had some life choices to make personally and financially. He worked for Wilder Construction for 12 years and was their Mat-Su branch manager and is a civil engineer. It was a great time for him to transition to Tutka LLC directly so he started our Construction Division. Once again, this decision allowed our family the flexibility we needed to live the lifestyle we wanted for our children. In 2011, upon Nygard’s departure, John assumed ownership in Tutka LLC. We are now life partners and business partners.

LEARNING CURVE: In the beginning, it was hard to admit that I needed help—I had to learn to hire good people, and ultimately develop enough trust to delegate, delegate and delegate... I had to learn to trust my instincts. When it comes to hiring employees, I hire based on character. If someone has the skill set for the position and great character, they will succeed. Generally you can teach anyone who wants to learn the ways of the company if they are willing to learn. Ninety percent of staffing is creating a peaceful environment for your employees to feel like they are at their second home. STRONG LINKS: At Tutka we have a trustworthy group and

rarely have turnover. We take care of our employees and they take care of us. I have spent over 15 years transitioning from a do-ityourselfer to a delegater. Once you build that trusting relationship

with your staff you can free yourself up to do what you do best: lead and grow the company.

EVOLUTION OF A COMPANY: One of the major changes in

our business since inception is that we sold our instrumentation shop and then started our Construction Division. This meant we were going to start building roads and landfi lls, installing culverts, as well as performing the actual excavation work on environmental cleanup projects. The decision was hard, as you never want to “give something up.” However, it has paid off. Once we freed up our resources (and cash that would have normally been tied up in inventory) we were able to go full speed ahead in our three niche markets: environmental, construction, and operations and maintenance of wastewater pretreatment systems.

EMBRACING CHANGE: My advice: Don’t let your emotions

get in the way of your checkbook. It’s hard to discontinue a service that you have been offering for a long time; however, in business numbers don’t lie. When you have to evaluate your energy, financial resources and prospective goals hard decisions can be made without your emotions getting in the way. 

www.akbizmag.com • Alaska Business Monthly • March 2013

AlAskA’s MArine industriAl Hub

AlAskA ship & DRYDock The largest shipbuilding and repair facility in Alaska just got better. Ketchikan Shipyard’s new state-of-the-art assembly hall and production center operated by ASD has put Alaska’s first city on the map as one of the most modern shipbuilding, modernization and repair resources in North America. ASD’s skilled workforce offers superior quality and Alaska tough results for vessels up to 500 feet.

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A k s H i p. c o M

i n f o @ A k s H i p. c o M

AlAskA nAtive corPorAtions

Photo courtesy of Cold Climate Housing Research Center

From left to right: Robert Williams (Ilisagvik College student from Anaktuvuk Pass) seated; Jack Hebert (president, CEO, CCHRC); Takpaan Weber (Ilisagvik student from Anaktuvuk Pass); Forest Kanayuuraq (Ilisagvik student from Anaktuvuk Pass) seated; Cora Morry (Ilisagvik student from Anaktuvuk Pass); Ben Hopson III (Ilisagvik student from Anaktuvuk Pass); Andrew Hopson (Ilisagvik student from Anaktuvuk Pass); Dave Shippey (building/project manager, CCHRC); John Howlett (instructor, Ilisagvik College); Dave Elbert (instructor, Ilisagvik College); Judith Grunau (project manager/architectural designer, CCHRC); Craig Bell (carpenter, Tagiugmiullu Nunamiullu Housing Authority).

Sustainable Arctic Communities Securing indigenous peoples’ future in Alaska BY DIMITRA L AVRAKAS

hile the rest of the world looks at the Arctic as a piñata of wealth close to exploding as its climate changes, indigenous people move to make sure they maintain control of the region and its resources. As the natural world changes around them, Arctic communities are proactive in finding sustainable means to continue to live in the homelands they know and love. Postponed from March of this year to late winter 2014 due to funding, a major indigenous conference to connect Native knowledge with modern technology is

planned to facilitate discussions and develop guidance for securing the sustainability and future of Arctic communities. “The idea of the conference is to make sure these communities move forward in a healthy way in physical health, cultural values and development,” says Dalee Sambo Dorough with the University of Alaska Anchorage Department of Political Science, and one of the conference organizers. The conference is Alaska-specific and is planned to be held at UAA with approximately 100 to 125 individuals

from North Slope, Northwest Arctic, Bering Straits Region and Lower Yukon Delta communities, according to the concept paper. Panel sessions will be followed by “small group working sessions where every participant would be called upon to contribute to the discussion and help to identify possible solutions to Arctic community challenges.” Workshop leaders would be those who are addressing the following issues in their communities as outlined in the concept paper: maintaining traditional

www.akbizmag.com • Alaska Business Monthly • March 2013

It’s Always Been.

“Handing down our stewardship of the land and sea to our children is a responsibility we all share. Harvesting one resource must do no harm to another.” — Carla Harris, Subsistence Fisher and BBNC Shareholder

Balance. www.bbnc.net

“CCHRC has a long-term commitment to the family and the successful performance of the home. A great deal is being learned and advanced in building science through the relationship we have with the owners and our testing of ventilation, heating, water and waste water systems.” —Jack Hebert President and CEO, Cold Climate Housing Research Center

economies of hunting, fishing, trapping, bartering and other harvesting rights yet balancing them with outside economic forces to ensure food security; utilizing effective ways and means to address the mental and physical health of Arctic indigenous peoples; pursuing economic development that is equitable and sustainable as well as consistent with the customs, practices and institutions of Alaska Native peoples; and providing cost-effective, innovative and environmentally friendly alternatives for our geographically remote, cold climate communities, including the related infrastructure. In the meantime, Arctic communities across Alaska continue to work toward sustainability. Here’s a glimpse at some of the progress being made in housing, energy and food security.

Shelter

Building in rural areas in the Far North is astronomically expensive, and conventional stick-frame buildings have not proven to be either energy efficient or long lasting, as older stick-frame buildings can often be seen in various stages of sinking into the tundra. In 2008, the Cold Climate Housing Research Center and members of rural communities around the state developed the Sustainable Northern Communities program to address the housing problem. Its slogan, “Indigenous wisdom. Twenty-first century technology,” is fulfilled by local residents participating in every project at all levels of design and construction. “Prototype Projects in 2013 are in Buckland and Atmautluak,” says Jack Hebert, president and CEO of the Cold

Climate Housing Research Center. “The prototype in Quinhagak has been occupied for two years. Quinhagak has moved the prototype with modifications in two iterations into production. At least five homes will be completed in 2013.” Construction costs vary, says Hebert. “Actual construction costs and overall costs associated with a housing project are different,” Hebert says. “Construction cost was about $220,000, but other expenses brought the project near $300,000. This reflects approximately a 50 percent reduction.” In Anaktuvuk Pass, the home is still a work in progress, he says. “The AKP prototype is owned by a local family and continues to be tested and systems refined,” Hebert says. “CCHRC has a long-term commitment to the family and the successful performance of the

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www.akbizmag.com • Alaska Business Monthly • March 2013

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home. A great deal is being learned and advanced in building science through the relationship we have with the owners and our testing of ventilation, heating, water and waste water systems.” “What all of us are learning in AKP is being applied to housing design throughout the North Slope through our relationships with TNHA (Tagiugmiullu Nunamiullu Housing Authority, the housing department for the North Slope Borough located in Barrow) and North Slope communities.” One stark difference that has been shown between stick frame and new technology housing in the Arctic is the ability to conserve energy. “Energy cost in the AKP prototype is 50 to 80 percent lower than similar sized homes,” he says. “Fuel consumption has fluctuated between 150 and 200 gallons of fuel a year depending on occupant numbers and behavior. This seems to be about what other CCHRC prototypes are using annually.”

Energy

Not every village in Alaska has the advantage that Barrow does: a gas field out their back door—so Bush villages are embracing wind power to generate electricity to light and warm their homes. Nor do many villages (except Noatak and Kivalina) have the advantage of a nearby zinc mine like Red Dog that in 2009 began a program to sell gasoline and diesel at cost to those villages. And last year, all Alaskans and certainly the rest of the world witnessed the catastrophic weather conditions and early iceups that led the Sitnasuak Native Corp. in Nome to hire a Russian-flagged ice-class tanker to cut through the ice to deliver 1.3 million gallons of gasoline and diesel fuel when supplies were dangerously low. These events have caused villages all over the state to wet their fingers and raise them to the wind. The Alaska Energy Authority and the Kotzebue Electric Association built a $10.8 million expansion to the existing wind farm system in that Northwest Arctic town. The expansion includes two EWT 900 kilowatt turbines that increased the output to 2.95 megawatts. The total system consists of 19 turbines with 15 AOC 65 kW turbines, one Vestas V-15 65 kW turbine, one Northern Power 100 kW turbine, and

www.akbizmag.com • Alaska Business Monthly • March 2013

two EWT 900 kW turbines, according to an AEA report. Turbine construction was finished in summer 2012, and a premium power flow battery will be installed this spring. Bruce Wright, senior scientist for the Aleutian Pribilof Islands Association, recently released a paper outlining wind power potential in rural Alaska. More than 120 of Alaska’s small communities operate on independent micro grids, Write reported, using fewer than 200 kW at peak capacity.

Food

“The purpose of the Reindeer Herders Association is to provide assistance in the development of a viable reindeer industry, to enhance the economic base for rural Alaska, and improve the management of the herds,” says Rose Fosdick, director of the Reindeer Herders Association in Nome. The 21 members come from the Seward Peninsula and St. Lawrence Island with two associate members (no vote). Fosdick explains that reindeer were first introduced to Alaska from Siberia in 1892 when the Rev. Sheldon Jackson, general agent of education in Alaska, imported 16 reindeer to Amaknak Island in the Aleutians from Siberia reindeer herds in 1891. In 1892 a herd was brought to the Seward Peninsula. Jackson had witnessed severe hunger when traveling in the Arctic on the U.S. Treasury Revenue Cutter The Bear with Capt. Michael Healy. It was thought that the animals would provide an easy food source. From 1892 to 1898, Siberian Chukchi Natives and Saami reindeer herders from Finland trained Alaska Native herders. Congress passed the Reindeer Act of 1937 that restricted ownership of the animals to Alaska Natives. By 1905, there were 10,000 head, which grew to an estimated 640,000 reindeer by 1937, and in 1985 there were 23,000. Today, Fosdick says, the number of ranges on the Seward Peninsula and the island is 17, with an estimated 10,000 reindeer. “Currently the majority of the herds are not active because Western Arctic Caribou Herd migration and departure have taken the reindeer with them off the ranges,” she says. The largest populated herds are located near the communities of Wales, Brevig

Mission, Teller, Nome, Stebbins, St. Michael and Savoonga (on St. Lawrence Island). Most of the harvest of red meat is for family and village food supply. “With the loss of reindeer and low populations, herders are not doing much slaughter or butchering for red meat sales, nor are they rounding up the small numbers on their range to harvest velvet,” she says. Regardless, she adds, the herders still consider themselves reindeer herders and have agreed to work on a strategic plan to revitalize reindeer herding on the Seward Peninsula.

Hope for Arctic Communities

Meeting the growing challenges of shelter, energy and food security are tantamount to the survival of Arctic communities. Although these examples don’t encompass all the elements needed in order to achieve sustainability in the Arctic, they are a good start in the right direction for the indigenous peoples of Alaska.  Long-time Alaskan journalist Dimitra Lavrakas writes from the East Coast and Alaska.

www.akbizmag.com • Alaska Business Monthly • March 2013

energY

Interior Energy Solutions Powering the future of Alaska BY JULIE STRICKER Photos courtesy of Golden Valley Electric Association

GVEA launched its Eva Creek Wind Project in 2012, shown with Mount McKinley in the background. The wind project is part of the utility’s strategy to diversify its energy sources and boost its use of renewable energy.

airbanks residents live in a state with abundant energy resources, yet they pay some of the highest utility rates in the nation. Some homeowners are facing winter fuel bills that rival their mortgage payments. Conditions in Interior Alaska’s villages are even worse, says Meera Kohler, president and CEO of the Alaska Village Energy Cooperative. “The villages are already barely surviving,” she says. “It’s not an electricity issue as much as it is a heat issue. Threequarters of what we use for our home or our business is used for heat. “Reliability is not the issue, affordability is,” Kohler adds. “If you’re spending close to 50 percent of your income on energy costs, it’s just not going to work.” Harnessing Alaska’s energy resources to resolve the energy crisis has proven to be a thorny problem. The state has some 20

big obstacles to overcome, including a small, widely scattered population, isolated power grids and a harsh environment. But if the state is to grow, it needs long-term, low-cost energy sources. Several projects, ranging broadly in cost and magnitude, are on the table for discussion, some of which have been gathering dust for decades. The question is which one, if any, can meet Interior Alaska’s energy needs 20 or 50 years down the road. Projects include: ■ A large natural gas pipeline from the North Slope that would either make a 90-degree turn into Canada at Delta Junction or continue south to an LNG plant at Valdez ■ A small-diameter “bullet line” from the North Slope that would serve Fairbanks and Interior Alaska

■ A natural gas line from Cook Inlet to Interior Alaska ■ The Susitna-Watana hydroelectric dam, which would supply energy along the Railbelt ■ A High Voltage Direct Current (HVDC) line from the North Slope to Interior Alaska called the All Alaska Energy Project ■ Various other projects, such as coal-to-liquid and underground coal-gasification plants; trucking natural gas from the North Slope to the Interior; and community solutions such as biomass and wind turbines

‘Different Attributes’

Senior economist and energy analyst Antony Scott has been studying the various projects in an attempt to figure out what the best solution would be.

www.akbizmag.com • Alaska Business Monthly • March 2013

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The bottom line, he says, is “there isn’t an answer.” “The reason is because the projects are different. They have different attributes,” Scott says. Each project has its ardent proponents, which can be a problem, according to Kohler, whose organization, the Alaska Village Energy Cooperative, is backing the HVDC All Alaska Energy Project. “We’re all at war with each other over our pet projects,” she says. The first step is to predict what will be needed in Interior Alaska in the next few decades. Cory Borgeson, CEO of Golden Valley Electric Association, says the utility forecasts fairly flat growth over the next 20 years, with one big possible exception: a major gold mine in Livengood, 70 miles north of Fairbanks. The mine project, wholly owned by International Tower Hill Mines, has identified more than 20 million ounces of recoverable gold, so far, making it one of the largest gold discoveries in the world over the past two decades. A feasibility study is expected to be completed in 2013, and ITH officials have

The Healy Clean Coal Plant can produce 50 megawatts of power. It is expected to go online in 2015. It is adjacent to the Healy 1, a 25 megawatt plant. Photo courtesy of Golden Valley Electric Association

said an economical energy source is one of the big pieces of any future mining plan. Borgeson estimates it would take almost 100 megawatts of power to operate a large-scale mine at Livengood. By comparison, Fort Knox gold mine 26 miles northeast of Fairbanks uses about 33 megawatts of power.

Currently, GVEA hits peak loads at almost 210 megawatts, Borgeson says. The utility averages about 150 megawatts of output, with usage a bit higher in the winter than in the summer. Fuel oil makes up a large chunk of GVEA’s energy resources, as well as naphtha, a lighter blend of fuel. Most of the system was established when oil

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“The cost of oil fluctuates so dramatically,” Borgeson says. “In the last four or five years we’ve seen oil as high as $140 a barrel to as low as $60 per barrel.” —Cory Borgeson CEO, Golden Valley Electric Association

prices were much lower—and recently GVEA has been looking for ways to kick the oil habit, which have resulted in some of the highest utility costs in the country. “The cost of oil fluctuates so dramatically,” Borgeson says. “In the last four or five years we’ve seen oil as high as $140 a barrel to as low as $60 per barrel.” Borgeson says GVEA buys economy power generated by natural gas from Southcentral Alaska utilities and brought up via the Northern Intertie. GVEA is also tied into the Bradley Lake hydropower project in Southcentral Alaska and in 2012 launched its Eva Creek wind power project. The Healy Clean Coal Project, which has been shuttered since 2000, is back on the drawing board. The plant, which demonstrated a technology designed to reduce emissions, was sold to GVEA

in 2012 and is tentatively slated to go online in the first quarter of 2015 after upgrades are completed, Borgeson says. The plant is designed to produce 50 megawatts of power and will dramatically lessen the utility’s dependence on fuel oil, thereby lowering costs. GVEA says it costs significantly less to produce power using coal, especially if a long-term coal contract is signed. “Coal is a more stable cost of power where we can enter five- or 10-year coal contracts and know what we’re going to be paying,” Borgeson says. Borgeson says GVEA is very interested in the Susitna-Watana hydro project, as well as the natural gas line proposals, but he’s not banking the Interior’s energy future on them. “You’ve got to plan your future on what you’ve got,” he says.

He’s also watching the High Voltage Direct Current project, calling it a “huge” project that could provide enough cheap energy for Fairbanks residents to use it to heat their homes, but one that would require extensive retooling of GVEA’s infrastructure. “The extension cord isn’t big enough for that kind of load,” he says. Borgeson also doesn’t want to rely on power generated hundreds of miles away.

North Slope Natural Gas

In the short term, he says, trucking natural gas to Fairbanks makes the most sense. The utility’s North Pole plant could be converted to natural gas, if it becomes available. Several proposals have been made by a number of entities, including GVEA. The Alaska Industrial Development and Export Authority will review the proposals. The goal is to build a natural gas liquefaction plant on the North Slope. The liquefied gas would be trucked to Fairbanks for distribution at a cost estimated to be half that of fuel oil. For Jomo Stewart of the Fairbanks Economic Development Corp., truck-

www.akbizmag.com • Alaska Business Monthly • March 2013

ing gas to Fairbanks is the first step in creating the infrastructure needed for a natural gas pipeline. Natural gas, he says, is the logical solution for Interior Alaska energy. Switching to gas will also help clear the air, literally. One of the side effects of high heating oil prices is that it’s causing a pollution problem in Fairbanks and North Pole because more people are heating with wood, Stewart says. “Wood burning used to be a lifestyle choice,” he says. “Now it’s an economic necessity.” Natural gas will be cheap enough that homeowners will be able to change over to a gas system economically, he says. Low-cost energy is also the key to growth in the state. “Energy is the fundamental underpinning of the modern economy,” he says. “It’s as important as good roads.” The gas has to come from the North Slope, Stewart says. A proposal to build a pipeline from Cook Inlet to the Interior is based on projections of gas discoveries that have yet to be tapped. Most residents in Anchorage use natural gas from wells

within 100 miles of the city to heat their homes, but reserves are running short of demand. Utility officials say supplies could fall short as early as next year. “Right now the chickens are coming home to roost in Anchorage,” Stewart says. In looking at different proposals for a natural gas pipeline, FEDC weighed factors such as affordability, availability, the timeliness and what volume it would provide at what price. In the case of a large-volume pipeline, it would be able to provide large volumes of gas for export as well as local use at a good price, Stewart says, but it wouldn’t be available until 2018 to 2020. That’s where trucking gas fits in. “It’s how we get gas here now,” he notes, although currently there are fewer than 2,000 customers for that gas. By ramping up the trucking gradually, it would enable a graduated build-out of the infrastructure needed to provide Fairbanks and North Pole residents with affordable natural gas. However, officials with TransCanada Corp. and the three major North Slope gas producers—Exxon Mobil, ConocoPhillips and BP Exploration—recently estimated the cost of building a large-scale natural

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gas line at $45 billion to $65 billion. By comparison, the Susitna-Watana hydroelectric project is forecast to cost about $5.9 billion. The dam, on the upper Susitna River, would provide about half of the Railbelt’s energy needs and would have a lifespan of about 100 years. It also would help achieve the state’s goal of producing half of the entire state’s energy using renewable resources by 2025. Under current projections, the project would begin producing energy by 2024. But where would that leave residents of Interior Alaska villages? Out in the cold, says AVEC’s Kohler. Interior Alaska’s economic future is already fragile, Kohler says. “The villages are already barely surviving. This is just not sustainable, and it’s not just rural Alaska. We just happen to be the canary in the coal mine.”

High Voltage Power Line

Every economic scenario that Kohler envisions hinges on the availability of affordable energy and the only project she sees that would address that issue is the high voltage power line from the North Slope through Interior Alaska

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and eventually to Southcentral. “It’s the only one that can be built in a relatively short time for a relatively modest cost,” she says. “It can deliver the most amount of energy the farthest, the quickest and the cheapest. “Conceivably, this could be online in four or five years,” Kohler says. “It puts all the other projects to shame.” Chief hurdles are obtaining rights of way and permitting, she says. Economist Scott is also intrigued by the project, with the caveat that he hasn’t been able to do an in-depth study and there are still many unknowns about the project. “The interesting thing about the project is that I actually think the construction cost risk is not as big as the pipeline construction risk,” Scott says. “It’s offthe-shelf technology and there’s so much less land disturbance” than a pipeline or a dam on the scale of Susitna-Watana. He estimates it would cost about $3.5 billion and could provide access to huge parts of Alaska that are now roadless as well as Alaska’s urban areas. Given Alaska’s increasingly important strategic role as the climate warms and the

The North Pole Expansion Plant can be converted to burn natural gas should it become available in the Interior. Photo courtesy of Golden Valley Electric Association

Northern Passage opens to more traffic, it makes sense to take advantage of economies of scale provided by defense and mining needs to string power lines west to Nome and Kotzebue. An HVDC project could even power the giant Red Dog mine on Alaska’s northwest coast, Scott says. Power lines also would pass through the highly mineralized Kobuk and Ambler areas. Mining companies are exploring rich copper, silver, gold and other mineral deposits in the area. An HVDC project “becomes able to unstrand a lot of stranded resources so you

can get them into the grid,” Scott says. “There’s a future in which the HVDC becomes backbone infrastructure that unlocks a huge part of these resources,” Scott says. “Roads to resources is interesting,” Scott says. “Let’s think about wires to resources. It’s cheaper, a lot more efficient. It provides what the mines with the resources really need.”  Julie Stricker is a writer living near Fairbanks.

www.akbizmag.com • Alaska Business Monthly • March 2013

FinAnciAl services

©Chris Arend Photography

Premier Alaska Tours CEO Peter Grunwaldt discusses the purchase of new rail cars with Wells Fargo Alaska Commercial Banking Manager Sam Mazzeo and Senior Business Relationship Manager Christie Watson. Wells Fargo’s long-term financing helped Premier Alaska expand its growing tourism business.

Long-Term Commercial Loans Helping businesses capitalize on new opportunities

BY TRACY BARBOUR

ast year when Premier Alaska Tours wanted to expand, it turned to Wells Fargo Bank for help. The Anchorage-based tour company needed funds to purchase Royal Celebrity Tours’ Alaska assets: four deluxe dome rail cars, a rail maintenance facility with a commercial prep kitchen for the onboard food service, 52 motor coaches and 17 support vehicles. The financing, which exceeded $10 million, encompassed six different loans with terms ranging from four to 20 years. “It was a complicated loan package involving a great team (Joe Everhart, Sam Mazzeo and Christie Watson) that found us the best solution for our specific financing needs,” says Chief Executive Officer Peter Grunwaldt.

Wells Fargo’s financing enabled Premier Alaska Tours to purchase the equipment necessary to grow its business and the infrastructure to maintain it. And perhaps more importantly, it provided structure and flexibility that was critical for the seasonal nature of the company’s tour operations. Established in 1995 with a staff of three, the tour company has a year-round staff of 42 and approximately 350 seasonal employees. Grunwaldt says: “As our banking and financing needs have grown, Wells Fargo has had the resources to not only meet our needs, but exceed our expectations.”

Where to Secure Financing

Premier Alaska Tours is among the in-

creasing number of Alaska businesses taking advantage of long-term commercial loans from banks, credit unions and other financial institutions. A longterm commercial loan is funding that’s greater than 12 months, according to Generally Accepted Accounting Principles; but what constitutes a long-term commercial loan at Alaska’s financial institutions varies by term, purpose and the assets involved. First National Bank of Alaska, for instance, classifies longer-term business loans into two categories. It offers commercial and industrial purpose loans with terms of three, five and seven years and commercial real estate loans financed for up to 15 years. Alaska’s larg-

www.akbizmag.com • Alaska Business Monthly • March 2013

est locally-owned bank, First National Bank serves the financial needs of Alaskans with ATMs and 30 branches in 18 communities throughout the state. At KeyBank, long-term debt usually involves loan terms of five years or greater. Regardless of the length involved, long-term business financing generally represents secured debt that carries a fixed maturity and interest rate. It requires monthly or quarterly repayment based on various amortization schedules, and the loan amount is often dictated by the collateral value. KeyBank provides commercial, consumer and private banking services, as well as investment and mortgage services in 17 branches in Alaska. For Wells Fargo, long-term business loans are typically those that exceed seven or 10 years. In terms of dollar amount, the bank has provided long-term commercial loans for as much as $50 million, according to Alaska Commercial Banking Manager Sam Mazzeo. However, Wells Fargo extends credit to Alaska businesses of all types and sizes. In general, borrowers with credit needs and capacity of more than $10 million work with Mazzeo’s commercial banking team. Wells Fargo has more than 40 business bankers across Alaska, including small-business banking teams and commercial banking teams that handle its largest customers. Alaska Growth Capital allows companies to finance commercial real estate loans for as long as 25 years. Loans for other purposes have an average 10-year term, with up to 15 years allowed for equipment. Alaska Growth Capital is a lending and consulting company that focuses on working with small business owners and entrepreneurs by providing professional and financial support and promoting economic growth in rural and urban areas of Alaska. Alaska’s only Business and Industrial Development Corp. (BIDCO), Alaska Growth is a subsidiary of Arctic Slope Regional Corp.

purchase and repay it over time, according to Lori McCaffrey of KeyBank. “Long term financing allows a company to free up working capital by not impacting liquidity when a capital need arises, as opposed to purchasing an asset with cash or by utilization of a line of credit,” says McCaffrey, senior vice president, commercial banking and private banking in Alaska. Some of the most common types of long-term commercial loans are used to finance equipment, commercial real estate and business acquisition. In Alaska, these loans often take on a twist,

involving aircraft, fishing vessels and even fishing rights and fishing quotas. Commercial and industrial loans at First National Bank Alaska are granted for everything from business acquisition to equipment financing. In Anchorage, these loans tend to involve large industrial clients, while about 80 percent of the longer-term loans for Mat-Su businesses are real-estate oriented, according to Senior Vice President Craig Thorn, who handles commercial loans in MatSu. “The commercial loans in Anchorage have more big industrial clients,” he says. “We don’t have the industrial base

Types of Loans

Long-term loans are standard financial products that are used by everyone from small mom-and-pops to large corporations. They comprise a large segment of the loans that many financial institutions make. Long-term commercial loans are attractive to borrowers because they allow them to finance a

www.akbizmag.com • Alaska Business Monthly • March 2013

in Mat-Su; we’re much more of a bedroom community.” First National Bank Alaska generally sets the term for equipment loans at five years, but the length of the loan ultimately depends on the specific equipment involved. “You certainly don’t want it to Mazzeo be longer than the life of the underlying asset that’s being taken as collateral,” Thorn says. The useful life of a new box van, for example, would be seven years. What determines useful life is primarily based on accounting principles, but it also depends on the actual condition of the property. “It’s up to the lender to inspect the equipment and determine its usefulness,” he says. That’s the principle that Wells Fargo applied to Premier Alaska Tours’ loan. Since the company was purchasing a variety of assets—rail cars, motor coaches and real estate—the bank employed multiple loan terms to match the useful life of the different types of property, according to Mazzeo. He explains: “Essentially, the loan amortizes or pays down over time. This assures that the loan stays inside of the value of the asset.” Alaska Growth Capital specializes in using Small Business Administration and USDA loan guaranty programs to offer longer terms than a typical commercial bank. “We can improve a borrower’s cash flow if we can ‘term’ equipment out over 10 years, versus a commercial bank that may do it over five years,” says President and Chief Executive Officer Chris McGee. “Our lending model is more closely structured to maximize the use of the loan guarantee programs versus having them as a secondary factor.” Named the SBA 2011 and 2012 Alaska Community Lender of the Year, Alaska Growth Capital often works with borrowers who need financing for equipment, working capital, acquisition and debt restructuring. Some of its clients may be in high-risk industries such as aviation, timber or tourism or located in areas without a local financial institution.

Qualifying for a Longer-Term Loan

Banks normally require three years of financial information to review a loan request, according to McCaffrey of Key28

McCaffrey

McGee

Bank. The applicant may be required to provide a business plan with a pro forma, a defined business purpose and valuation for the asset being acquired. As with most commercial loans, she says, only established businesses with a history of profitability qualify. Also, cash flow (historical and projected) generated by operations must be sufficient to service the debt. A number of considerations factor into qualifying, including: the purpose of the request, asset being financed, financial performance, ability to service the debt, management, guarantors, industry and credit history. Risk is also a major factor. “A lender carries more risk when it extends longterm financing as it increases the likelihood a borrower can experience financial distress,” McCaffrey says. “As such, the lender will require collateral—subject to acceptable loan-to-value ratios— to secure the financing of long-term debt, may require guarantors and may be subject to financial covenants.” There are risks associated with every loan, says First National Bank Senior Vice President Commercial Lending Bill Inscho. Long-term loans may necessitate more collateral, a stronger track record and other qualifying factors, but it all boils down three things: idea, capital and management. He explains: “Any business, whether it’s Starbucks or a brand new company, has to have an idea that works. You’ve got to have some money of your own to get it started and to support it. And you’ve got to have strong management. If you don’t have the management skills necessary, the chances of the business succeeding are slim.”

Positive Impact on Economy

Long-term commercial financing can have a positive on business growth as well as the state’s overall economy. It can also enhance earnings, which in turn can lead to business expansion,

acquisitions and increased shareholder returns. Having access to capital enables companies to take advantage of new opportunities, which was the case with Premier Alaska Tours. “It allowed us to capitalize on a unique opportunity transferring ownership of transportation and tourism assets to an Alaskan owned company, creating more jobs for Alaskans in Alaska,” Grunwaldt says. Long-term debt can also be a tool that can help a business manage and improve its financial performance, according to McCaffrey. But the amount of long-term debt on a company’s balance sheet is crucial, she says, and borrowers should understand that the burden of principal and interest payments could become too heavy if they borrow excessively. However, she adds, the current low-interest rate environment provides an opportunity for businesses to fi x interest rates for years to come, eliminating interest rate risk volatility.

Expert Advice

Alaska’s financial institutions offer sage advice for would-be borrowers. McGee encourages business owners to carefully consider whether a long-term loan is best for them. They should weigh whether it makes sense and how it will benefit their business. He adds, “Does it strategically fit into their long term growth plan?” Mazzeo urges businesses to develop a relationship with their banker—before they need it. “It is critical to having access to capital or lines of credit,” he says. Similarly, Thorn stresses the importance of keeping your banker fully informed. Companies should submit updated financials to their bank annually, so they can react more quickly to funding requests. Inscho encourages business owners to go visit their banker and keep them informed on how their business is going. He adds: “Let them know that you’re thinking about an investment. We can give words of advice and caution and help them make a better-informed decision.”  Former Alaskan Tracy Barbour writes from Tennessee.

www.akbizmag.com • Alaska Business Monthly • March 2013

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Photo courtesy of the U.S. Army Corps of Engineers

militArY

RMA Consulting Group is the project manager for the new small boat harbor in Akutan. The project is a partnership effort between the U.S. Army Corps of Engineers and the Aleutians East Borough.

Alaska Veterans Succeed in Business Enterprising entrepreneurs ﬁnd markets, ﬁll needs BY JOETTE STORM

here are more than 21 million veterans of the Armed Services in the United States of America, according to the 2010 Census. Statistics for the number of vets who own and operate their own businesses are tallied on a five-year cycle. The most recent survey found that about 13.5 percent of businesses nationwide are owned all or in part by veterans. Those 3.7 million businesses employ more than 8 million persons and account for $1.6 trillion in receipts. Alaska has its share of veterans, many who fell in love with the state while stationed here. They have become successful entrepreneurs in a variety of small family businesses, large-scale suppliers, and service or specialty firms: EAR Alaska is a hearing aid provider; Elizabeth Fleming of Kodiak specializes in criminal and military law. Room for Babies is a Fairbanks childcare facility. Quality Dry Cleaning, North Pacific Auctioneers and Last Frontier Design speak for themselves. The stories of two veterans illustrate how individuals move from working for others to starting their own enterprises in different sectors of the economy. In both cases, their spouses play a role in the ventures.

RMA Consulting Group

Ray Mann, a Vietnam combat veteran, is a former director of public works for the 30

Municipality of Anchorage. He had experience with the State of Alaska and several private firms before deciding to go on his own. Mann continued his education after entering civilian life earning a master’s degree in urban and regional planning from Virginia Tech. By the 1990s, he had developed many skills teaching, mentoring and shepherding projects through the complex process of permitting and execution. In 1996, when the company he worked for moved to Indiana, Mann and wife, Kathy, a former National Bank of Alaska vice president, decided to review their personal skills sets and set up their own shop, offering the coaching and business skills they liked to do best. “It is important to decide what market one will serve and really focus on filling the needs of that segment. We were urged to bid on government contracts, but decided we wanted a more personal business helping smaller organizations that don’t have all the resources and people necessary to grow,” he says. Today with three other employees, Mann offers project management to communities such as Akutan on the Aleutian Chain. They create and direct projects from design to implementation, offering grant writing, team building and contract negotiation among their services. “We do not just write reports, we have to be engaged in the project,” he says.

“We like getting to know the people we work with on a personal basis, helping them see the project through to the end.” Akutan’s project is especially exciting as it involves exploration for a geothermal energy source and the opportunity to help the Aleutian Chain community become energy independent. RMA Consulting Group continues to manage the project as it moves closer to production drilling and system development. Other projects include support for the new state-owned Akutan Airport development and various infrastructure projects around the community. Mann’s advice to any vet contemplating a business venture is to develop a written business plan. “One can find many examples and templates on the Internet. However, it requires more than just filling in the blanks. Kathy and I had many skills to draw upon so we developed our own plan,” he says. He recommends looking for a mentor in one’s family or community to help develop realistic goals and a budget. A firm dollar goal is an important motivator to shape actions necessary to achieve the goal. If you have a good idea and a sound plan, financing is available from banks or the Small Business Administration. However, it is harder that way than tapping into family to obtain the initial startup cash, he suggests.

www.akbizmag.com • Alaska Business Monthly • March 2013

Alaska Adventure Cabins

Bryan Zak, a retired Air Force officer, is also owner of Alaska Adventure Cabins, a hospitality business in Homer that offers some unusual lodging opportunities on Bay Crest Hill overlooking Kachemak Bay. In addition to traditional log lodges, the vacation rentals include a 75-foot boat, the Double Eagle, on a permanent foundation, and a restored Pullman rail car, the Moose Caboose. Zak says he was not looking to start a business when first coming to Alaska. He and his spouse, Karen, had jobs in Reston, Va. They fell in love with the beauty of the area and decided to buy a small piece of property with a fabulous view. To pay for it they decided to rent the cabins. What followed was a long process of learning about zoning codes, conditional use permits and marketing techniques while holding down full-time jobs in Anchorage. They joined the Alaska Bed and Breakfast Association and the Homer Chamber of Commerce but neither of them knew about the free services of the Small Business Development Center at the University of Alaska. Zak became director of the SBDC in 2008, a result of

networking through his role as an Alaska Performance Excellence Examiner. “Knowing what I know now, the SBDC—including the Alaska Center’s website—would be my first stop for tools, free workshops and one-on-one counseling it offers,” he says. In today’s world a business owner may not only need a great physical location but also an incredible presence in the “cloud” and on social media. The SBDC can provide counseling on such topics as well as how to write a business plan that includes projection, financing and employee management. Both the SBDC and the Small Business Administration, with offices around the state, have programs with an emphasis on helping veterans transition to the private sector. “Operation Boots to Business: From Service to Startup” offers financing, training, counseling and access to federal contracts. The program draws on a network of resource partners such as Women’s Business Centers, the Senior Corps of Retired Executives (best known as SCORE), Veterans’ Business Opportunity Centers and various universities. Sam Dickey of

the Anchorage SBA office says Alaskans are slated to see the program this year. Another program, “Entrepreneurship Boot Camp for Veterans with Disabilities,” begun at Syracuse University may also be expanded. It is targeted to help service-disabled vets who served in Iraq and Afghanistan and their family caregivers, female veterans and National Guard and Reserve members. Since 2009, 434 service-disabled veterans have participated in the program. Zak has solid advice for budding entrepreneurs. “Become involved in your community,” he says. “The more you give, the more you will get and not necessarily cash. The rewards are in building a network and helping others be successful too.” Zak practices that by serving on the Homer City Council, the Kenai Peninsula Economic Development District, the Homer Economic Development Committee and the Center for Alaskan Coastal Studies board. He is also a Malcolm Baldrige program examiner.  Author Joette Storm lives in Anchorage.

DESIGN for the

Arctic community

Fairbanks | 907.452.1241 Anchorage | 907.276.1241 www.designalaska.com

www.akbizmag.com • Alaska Business Monthly • March 2013

HR Matters

By Kevin M. Dee

Great Leadership The path to great employee retention

f your company or organization has high turnover, you may as well just take a pile of money and burn it. Various studies show high turnover costs companies on average between 60 percent to 170 percent of their annual salary for every employee a company has to replace. High turnover can be fixed—and fixing it will save lots of money. It all begins and ends with leadership and management at all levels and the actions taken to create a high-performing organization. If you are unaware of how people perceive your organization, you are flying blind. Every action of management must be in alignment with the vision and values of your company. You build trust and loyalty by walking your talk. Leadership’s responsibility is to provide the tools and resources necessary to get the job done to the people doing it. If you are not doing these things and creating buy-in to your mission at all levels, is it any wonder that people are leaving?

Setting the Direction

Great leadership sets direction. In addition to providing necessary tools and resources, leaders must also create and be the gatekeepers to a healthy culture of respect. Every individual should have the opportunity to be successful in a safe environment. You can hire great talent, but they will not stay unless you maintain an environment and culture that they can thrive in. A healthy culture is one where everyone treats everyone civilly—bad actors, hoarders, nonperformers and bullies are pressured to step up or promoted to the job market in order to keep a productive workplace for all. A high-performance workplace is where each person can say: “I know what is expected of me, I can achieve my goals and I have the support of my team.” Too often, workplaces are man32

aged by opinions, gossip and vague goals, creating a “that’s just how it’s done around here” mentality. Creating key metrics of success that are based on data and facts essential to the success of the team goes a long way towards creating high-performance. Shared goals that are measurable and that an employee has bought into foster collaboration and shared ownership. In order to ensure that your workplace is one of high-performance, measure team performance on an ongoing basis. Throw out the annual performance review systems that do not work. A recent survey by the Society for Human Resource Management indicated that 90 percent of performance reviews are not effective and are in fact detrimental to employees. Performance reviews should be ongoing, fact-based and tied directly to the success of your strategic plan.

Critical Factors

You are the gatekeepers for your healthy high-performing organization, and “who” you invite to come join your team is critical. One of our clients recently hired a brilliant engineer to join in on a great project. While technically a high performer, his abrasiveness and domineering style alienated all around him—despite coaching and counseling there was no improvement. The team’s performance suffered greatly. This could have been remedied in the hiring process if “hiring for fit” versus “hiring for skill” was used as a hiring criterion. Many companies today accomplish this by using personality assessments as one of the tools in hiring for fit. Hogan Assessments is one of my favorites and a leader in this field. Hiring for fit is critical. You can always train for skill. Involving co-workers on hiring panels also gives employees a sense of ownership in who they are inviting to join their team.

Once you’ve made a hiring decision, the next most critical aspect is how you bring that new employee into the fold. Imagine you’ve just invited someone to live in your house and (if you’re like many companies) you point to where the bedroom and the bathroom are and then tell them you expect them to do their part, obey the rules and achieve… or else! If you want people to stay with your company, ensure their success by fully investing in their training and making sure new employees clearly understand who you are as a company, what you stand for, and what is expected from them (including how to run the copier). Great practices include a buddy and/or mentor that can show the new employee the ropes. Another great practice is having the last new hire orient the next new hire. It’s not enough in today’s marketplace to have a great product or service. Hiring talented employees and creating a high performing and nurturing organization can determine who will be around for the long run and who will self-destruct and fade away. Creating a great and successful company by hiring and retaining the best people for the job is up to you.  Kevin M. Dee has a master’s degree from Vanderbilt University and is the president of KMD Services & Consulting. He has more than 28 years experience providing leadership development, organizational development and human resources services in Alaska and internationally. Contact him at mail@kmdconsulting. biz for more information.

www.akbizmag.com • Alaska Business Monthly • March 2013

ALASKA

telecom & technologY

Using Data

BY ED ARTHUR

hen I shop, when I go through a checkout stand at my local supermarket, when I use my “preferred customer” cards, things are happening behind the veil of sleek, clean machines and friendly clerks. With every swipe of a customer card, credit or debit card, with every “beep” when a

www.akbizmag.com • Alaska Business Monthly • March 2013

bar code is successfully read by a scanner, an entry is made to one or more data collectors about my buying habits. I have come to accept that all my purchases, including if and how much cash back I take or not in addition to making purchases, are recorded and stored for later use by—not humans—computer algorithms designed to extract information related to every business function.

household repair needs). Generally, I will not use unidentified sources, but a manager, John I shall call him, agreed to speak with me providing I would not identify him by name. “Store policy,” he says. After an initial conversation in which I had to convince him I merely wanted information and was not a head-hunting privacy zealot, he agreed to chat. Prior to his current employ-

…am I being tracked by name, age, address or other personal information? Are my buying habits potentially attached to other personal data, such as my driving record, employment history or hospital visits? What about information from pharmacy purchases? Is that fair game? All that Data

What is it used for? What does it determine through algorithms regarding my habits, relationship with the store and preferences? How does it affect what I get in the mail, in email and for checkstand coupons? Am I not sent some offers I might otherwise be sent? Do I get offers others do not? Is the information (data) just stored without any identifiers along with thousands of others for retail and wholesale stocking purposes? Or, as privacy advocates boisterously worry, am I being tracked by name, age, address or other personal information? Are my buying habits potentially attached to other personal data, such as my driving record, employment history or hospital visits? What about information from pharmacy purchases? Is that fair game? What goes on? How much of what I consider my private buying habits are really needed to conduct business efficiently in the 21st century? To get answers, I went to a couple of major retail sources I believed would have the answers I needed. One is a senior manager at the Alaska and Pacific northwest retail chain, Fred Meyer. The Fred Meyer chain is owned by the retail giant Kroger, whose policy on press questions is generally to direct them to corporate public affairs and legal beagles outside Alaska. Fred Meyer stores in Alaska also have just what I was looking for: frequent customer cards, pharmacies, gas stations and a wide variety of goods for sale (from food to furnishings and gardening supplies to

ment, John had worked for a building supply company and a grocery store chain, both in Alaska, where he still has friends willing to share with him and verify his facts when needed. According to the Fred Meyer manager, all the information about purchases by identifiable customers, those with membership or frequent customer cards, is not directly connected to a name, but to a number. That number is eventually attached to a name and address in a separate data base used for special offers. The same is true of customers who sign up to receive special announcements and offers by email, he says. The purchase information is sent to central processing facilities in the Lower 48 and used for a variety of benign purposes related to company logistics; ordering merchandise and tracking sale items by store, district or region, for instance. The same information minus the identifiable number is collected about other purchasers, those paying cash, collected at the point-of-sale (cash register) at each store.

Using the Data

How much information is necessary? From the business point of view, as much as it takes to maintain current customers, keep merchandise or services moving, contain costs like overstocking and stock loss due to “sell by” dates. “The biggest reason for data collection is inventory control,” Fred Meyer’s manager says. “Before the point-ofsale data collection, businesses had to

www.akbizmag.com • Alaska Business Monthly • March 2013

“Tens of thousands of companies depend on (cloud) computing centers to be up, operational and secure 100 percent of the time. Like the banks, cloud computing providers are in the business of security and invest far more than local servers to ensure that security.” — Nathaniel Gates Founder and President, Cloud49

hand-count and paper order. It was really labor intensive and expensive and slow, and less accurate. It was too easy to have mistakes. But that’s ancient history now. Thankfully, we have computers and automatic ordering and reports that are produced by our systems every hour if we want. Makes it faster and easier to order the things people want to buy and that makes their shopping more fun and better for us all.” Safeway Stores, the owner of Carrs/ Safeway stores in Alaska, does the same thing, but a little differently. Safeway purchased the warehouse side of the original owners’ holdings at the same time it bought the Carrs Quality Centers stores. Alaska ordering is done through the warehouses, but is based on sales reports and individual store orders. According to

logistics expert and former Carrs warehouse employee, Chris Perez, the data collected at the cash registers is critical to keeping supplies of wanted merchandise available for shipping to local stores on short notice. “Using the sales reports, combined with individual store orders, the warehouse management team can keep Alaskan customers supplied with what they want,” says Perez. “It also helps prevent overbuying, which costs the company and ultimately the customer real dollars as well,” he says. Both these retail giants use their own systems and storage facilities, but the computer work they do and the data they mine is the same information retailers and service providers of all sizes use to bring wanted products to consumers. Best of all, you don’t have

to be one of the big guys in Alaska to take advantage of “big data” collection. There are several services, some with big names, ready to provide cost-effective, off-site computer and data storage services right here in the Last Frontier. AT&T, General Communications Inc., Alaska Communications Systems and Cloud 49 are among the providers with customized flexible use plans and 24hour services.

Housing the Information

The benefits to using a computer server and storage off-site service are perhaps obvious: no capital investment in servers or hard drives for storage and no in-house server maintenance requirements or excessive software licensing fees. A side benefit is that a business’s IT staff has more time to concentrate on

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the company’s real needs rather than servers and storage. What about security? Isn’t our data safer under our supervision than in some cloud storage place? According to Cloud49 founder and president, Nathaniel Gates, in an article published in the May 2012 issue of Alaska Business Monthly, “Tens of thousands of companies depend on (cloud) computing centers to be up, operational and secure 100 percent of the time.” And, Gates writes, “Like the banks, cloud computing providers are in the business of security and invest far more than local servers to ensure that security.” Don’t like the idea of your data being stored in other countries? Most providers, according to Gates, “provide affidavits guaranteeing that data is not stored internationally.” Skeptics ask, what about speed and access? Well, the major companies we looked at earlier depend on speed and access as well. Unless you’re measuring response time in microseconds, having your off-site services a thousand miles away or one mile down the road will make no difference. In fact, Cloud 49 has three centers which back each other up,

located in Alaska (the main office); Bellevue, Wash., just outside Seattle; and near Los Angeles, in Valencia, Calif. Just as GCI backs up its industrial telecom services from Alaska and Texas, all reliable cloud computing service providers provide redundancy to ensure they are up 24/7/365 for their clients. With the ubiquitous Internet providing nearly all access to remote servers, access is as simple as you choose to make it. The connection is there, and your controls to access your servers and stored data are as complex or as simple as you choose to make them. The provider equipment supports your needs. Whether in-house or in a cloud, access is as simple or complex as you, the customer, choose to make it. Major cloud providers also provide access to new and current customers mostly via Internet pages. You can change your preferences, types of services, expand or contract services as your needs demand or add accounts, change accesses and the myriad of other functions you might do no matter where your servers and storage hard drives are located.

Of course, no provider has control over local events such as an isolated power outage, natural disaster-caused damage to Internet service providers or local cables. That being said, however, your data stored would not be affected by such local incidents. Local cloud providers with backup sites can boast the same protection for your data. In this new digital world, cost-effective, secure, guaranteed server and storage services, or a combination of inhouse and off-site service keeps looking better and better. With at least matching speed, access, security and service guarantees, it’s hard to argue against considering cloud computer services and storage. And now, with competitive services available right here in Alaska, there is even less to argue about. The benefits to businesses and longrange to customers in terms of savings from using big data wisely can be real. It’s up to customers and businesses to make sure things don’t go awry.  Journalist Ed Arthur writes from Anchorage.

www.akbizmag.com • Alaska Business Monthly • March 2013

heAlth & medicine

Travel Medicine

Photo courtesy of myHealthClinic

The myHealth Clinic in Anchorage is among a handful of providers around the state offering services tailored to the traveler.

Preparing for a healthy trip BY NICOLE A. BONHAM COLBY

or the business traveler, receiving an assignment to report outof-country can be the start of an exotic adventure. But before the journey ever starts, often there are medical requirements as the initial threshold to overseas deployment. Such was the case when an overseas contractor first rang me up years ago for a technical writing position in the polar regions of the southern hemisphere. Employment was dependent on first passing a strenuous battery of physical tests. The adventure travel would occur only if I were deemed physically qualified. First, I had to find a local provider in my small Southeast town who was willing to oversee the extensive physical examination requirements, perform the contract-required immunizations targeted to my job destination, and also 38

to educate me about my medical needs specific to the countries and continents across which I would eventually meander on my way home to Alaska. It was a process I would repeat another dozen times through the years as my job and penchant for travel took me away from the 49th State. In the decade since that first southern excursion, the medical industry has evolved a bit, polished its processes, and has recognized the need to provide travel-specific services as our business world becomes increasingly global. In fact, several providers in the state market themselves directly— on their websites and in advertising—as providing “travel medicine.” To the uninitiated, the term speaks of exotic ports and foreign cities. In fact, the service is a thorough suite of offerings ranging from a simple precautionary prescrip-

tion to a more comprehensive screening for CDC-recommended immunizations specific to the destination country itself. Regardless the traveler’s scope of need, Alaska offers several medical experts and clinics to make the process seamless and efficient.

Growing Trend

At the myHealth Clinic at 2105 East 88th Avenue in Anchorage, Travel medicine is among highlighted services that clinic staff provides to their clientele. Jyll Green, an advanced nurse practitioner and former flight and ER nurse at area Anchorage hospitals, founded the clinic in February 2007. When asked what prompted her to include travel medicine among her clinic offerings, she indicates that she simply observed the need.

www.akbizmag.com • Alaska Business Monthly • March 2013

Alaska WWAMI

School of Medical Education Excellence in medical education right here in Alaska Through the Alaska WWAMI School of Medical Education, students interested in a career in medicine have the opportunity to complete three of their four years of medical school right here in Alaska. WWAMI is a collaborative medical school among universities in Washington, Wyoming, Alaska, Montana and Idaho and the top ranked University of Washington School of Medicine. Classes are small so students receive individualized attention and access to faculty, research opportunities, local physicians and Alaska’s health care community.

www.uaa.alaska.edu/wwami

UAA is an EEO/AA employer and educational institution.

“myHealth Clinic is a family practice office that has always accepted walk-in clients in addition to regularly scheduled appointments,” Green says. “It was surprising how many people were coming in as a walk-in for travel vaccines, so—out of necessity and interest—I chose to get informed by attending travel medicine conferences and courses. We started offering travel medicine services in 2008. I think Alaskans really like to travel, so there is a high need for this service. It is amazing to hear about where people are traveling.” As far as processes that someone should consider when preparing for international travel, Green suggests, “It is never too early to have a pre-travel medical consultation. We do a lot of last minute travel consultations which may not allow enough time for vaccines to take full effect. At least 30 days in advance is sufficient for most travelers; however, long-term travelers to countries where their risk is higher for rabies or Japanese encephalitis would want to consult earlier than that.” Colette Lausier, a myHealth Clinic receptionist, reports that she regularly books travel-related appointments. “We probably see them at least multiple days a week—three or four days a week— new patients coming in for travel medicine,” says Lausier, who commented that she’s noticed the practice area grow through her years of employment there. “It’s mostly travel consults for people who are traveling out of country,” she says. Such pre-travel consultations—a visit with the practitioner about your intended destination, scope of potential exposure, duration of travel, and the like—may result in prescriptions, vaccinations or an emergency health plan. “Lately we’ve have been people going everywhere—a lot of Central America, the Far East, Africa—all over the place.” Patients have an opportunity to explain their travel plans when they meet with the practitioner. “During the travel medicine consultation, we discuss all types of travel hazards and risks including the expected malaria prevention and vaccines for preventable diseases,” Green says. “I think it is wise to give the traveler the ability to self-treat common medical problems that arise while traveling, so I give basic medical treatment advice and a prescription for a broad

www.akbizmag.com • Alaska Business Monthly • March 2013

spectrum antibiotic with instructions on how to use them properly.” Just because the trip has ended, that doesn’t mean the traveler won’t experience its effects for some time to come. “After travel to a country with risk for malaria, people should be aware that any fever that develops up to one year after return should be considered malaria until proven otherwise. It is very important to continue malaria medication exactly as instructed, even if you don’t think you have been bitten by a mosquito,” Green says. Green attributes the increase in travel-related medical interest to a variety of sources. “I am definitely seeing a lot more pre and post travel consultations since getting involved in the International Society of Travel medicine and moving to our new location with expanded hours,” she says. “I also think people are hearing about the resurgence of diseases, such as polio, in certain countries and are starting to take travel precautions more seriously. There are several cases of malaria in Alaska each year from overseas travel.”

The Traveler Perspective

Kent Colby of Ketchikan is one who frequently goes to “see the world,” traveling wide and far outside Alaska for business. On one winter day recently, he boarded the ferry to Gravina Island to catch an Alaska Airlines flight from Ketchikan to Seattle and on to San Francisco; and then to catch United Airlines to Sydney, Australia, toward an eventual stop in Christchurch, New Zealand, and destinations beyond. On contract for the National Renewable Energy Lab in Golden, Colo., Colby is a project manager whose work frequently takes him outside the country—not always without medical incident, he recalls. Whether it was the med-evac from our own Dutch Harbor (not foreign, but as far away from Ketchikan as one can get and still be in the state), the flu while in Toronto, or the toothache in New Zealand, Colby says his past experiences have made him cognizant that medical planning is a core part of any travel plan. For this latest trip—a short contract in Antarctica—he sought medical travel planning with his primary care provider at PeaceHealth’s Ketchikan Clinic. The clinic coordinat

“Talking to your doctor beforehand about what care is available at your destination is worth considering.” —Kent Colby of Ketchikan

ed with the contractor’s medical branch regarding necessary physical qualifications and vaccinations, ensuring Colby a timely departure to meet his contract deliverables this winter. “Perhaps the best aspect of traveling internationally for work is the adventure— and the anticipation of returning home. You want to make sure your papers are

in order for any interesting recreational travel opportunities that arise,” he says. “Plus, riding on an airplane, there are potential problems of sitting that long in a less-than-ergonomically-designed seat, exposure to a diverse set of airborne bugs, and the natural upset to your system that comes from transiting one side of the globe to the other in a matter of hours.”

From the beginning, our goal was that people living in the Interior wouldn’t have to travel to the Lower 48 to receive the best possible care and treatment. That’s why we built the J. Michael Carroll Cancer Center. Now, every year, 1,000 of our neighbors – like Becky – can be treated and recover with the support of friends and family. Which, we believe, is critical to the healing process.

community-owned fmhdc.com

www.akbizmag.com • Alaska Business Monthly • March 2013

Photo courtesy of Dr. Alex Baskous

Dr. Alex Baskous’s Anchorage practice includes a travel medicine specialty. Baskous is shown, right, conferring with Heather Garris, nationally certified medical assistant.

The concept of being medically prepared for medical needs once at your destination rang home to Colby several years ago when he survived the earthquake that destroyed much of Christchurch. While he managed to escape the bed and breakfast inn where he was staying in the city’s center, his luggage and all other belongings did not. Left with only the clothes he was wearing and his wallet in the days that followed, he realized first-hand how medicine— from access to regular prescription medications to basic emergency care— plays a role in any travel regime. “You want to make sure that you are in reasonably good physical condition when you travel. One reason is that, when you get to a foreign location— even one as lovely and civilized as New Zealand—you don’t know where to go (if you need medical care),” he says. “Talking to your doctor beforehand about what care is available at your destination is worth considering.”

A Traveling Lot

Whether it’s the seasonal jaunt to Hawaii, or a contract in the other hemisphere, Alaskans appear to be a transient lot, enjoying the occasional travel to the 42

Lower 48 and exotic locales beyond. For those seeking providers who offer the specialty of travel medicine, there are several to choose from. In addition to myHealth Clinic in Anchorage, the city also features the clinic of Dr. Alex Baskous at 2841 DeBarr Road. Baskous holds several travel-related certifications and writes eloquently on his clinic website about the benefits of adventurous travel—and the advantages of medical planning beforehand. He poses a series of travel-related questions for the patient to consider up front: any climate or altitude issues to consider, awareness of areas to potentially avoid during travel and destination-specific symptoms to monitor. “Alaskans are adventurous and frequently go to exotic places and do exiting things around the world,” says Maria Baskous, the clinic’s manager. “Medical issues for them are very different in those places and a trained specialist in this field was needed here to prepare our travelers. This specialty has been a great pleasure. We get to meet wonderful, adventurous folks. The growth of our practice has increased through word of mouth among travelers.” Baskous echoes the words of other clinic operators who recommend fol-

low-up once back in the state. “In addition to preparing for travel, don’t forget that travel related health problems can show up well after returning home,” Baskous says. “Always mention recent travels to medical professionals after travelling to other parts of the world.” Similarly, the Tanana Valley Clinic on Noble Street in Fairbanks advertises its medical travel offerings, providing a descriptive list of related services on its website—including topics of disease prevention while traveling and accident prevention. Increasingly, the concept of foreign travel is commonplace—whether for business or pleasure. What is relatively new is the proactive attention being paid to ensuring a safe and healthy trip, from a medical perspective. “Although I admit I have traveled unprepared, I wouldn’t recommend it,” says myHealth Clinic’s Green. “Sometimes, the most common, simple thing can ruin your entire holiday. We love doing group travel consultations. What could be more fun than getting vaccinated together?” Nicole A. Bonham Colby writes from Ketchikan.

www.akbizmag.com • Alaska Business Monthly • March 2013

AGENDA

Compiled By Tasha Anderson needs for Alaska’s remote communities. akruralenergy.org

March

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2013 AWRA Alaska Section Annual Conference March 4-7—BP Energy Center, Anchorage: The agenda will include oral and poster presentations on Alaska’s water management issues, the latest on scientific research and a hydrology workshop. awra.org

May

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ANILCA Seminar March 6-7—BLM Campbell Creek Science Center, Anchorage: A thorough review of the Alaska National Interest Lands Conservation Act of 1980 and an opportunity to examine and discuss current and controversial ANILCA-related issues with several subject matter experts. institutenorth.org

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Japan Business Update and Outlook March 13, 11 a.m. to 2 p.m.—Anchorage: The luncheon presents a timely update on the Japanese economy and new, or expanded, business opportunities. The importance of Japan to the United States, especially Alaska, its economic future (and implications), and commercial (trade and investment) opportunities for Alaskan and Japanese companies, will be outlined and discussed. wtcak.org

Governor’s Safety and Health Conference

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Visit Anchorage Annual Seymour Awards Banquet

Alaska Rural Energy Conference April 29-May 1—Sheraton Hotel, Anchorage: This conference is a three day event offering a large variety of technical sessions covering new and ongoing energy projects in Alaska, as well as new technologies and

ASCE 10th International Symposium on Cold Regions Development: Planning for Sustainable Cold Regions

ISOPE Arctic Materials Symposium June 30-July 5—Egan Civic & Convention Center, Anchorage: Special symposium organized to provide the scientific-industrial community an insight of new materials and technology development in the subject of Arctic Materials. arcus.org

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Institute of the North’s Week of the Arctic August 12-18—The Institute has been convening Week of the Arctic since 2011 to help Alaskans understand the critical challenges and issues at stake in the Arctic. It culminates with the Robert O. Anderson Sustainable Arctic Award, which recognizes and individual or organization for long-time achievement in balancing development of Arctic resources with respect for the environment and local benefit. institutenorth.org

Alaska Fire Conference September 23-28—Anchorage: The theme is “Today’s Visions Tomorrow’s Reality.” The conference includes training and a firefighter competition. alaskastateﬁreﬁghters.org

AAR Convention September 17-21—Hotel Captain Cook, Anchorage: The Alaska Association of Realtors 2013 Convention theme is “No Excuses,” and will be hosted by the Valley Board of Realtors. alaskarealtors.com

October

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NASBO Annual Meeting July 21-24—Hotel Captain Cook, Anchorage: The National Association of State Budget Officers, hosted by the Alaska Office of Management and Budget, meets to hear expert speakers on the economy, state revenues, healthcare reforms and more, as well as to network. nasbo.org

July 28-31—Hotel Captain Cook, Anchorage: The theme of the conference is Industry Meets Government: Impact on Energy Use and Development. This conference will address the issues, challenges, and opportunities of industry-government relations as the stakeholders strive to meet their respective goals for commerce and society. usaee.org

September

July

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USAEE/IAEE North American Conference

August

Private Sector Transportation Infrastructure and Assets: Response Capacity and Development in the Arctic Workshop

June 3-5—Dena’ina Civic & Convention Center, Anchorage: The program will include technical tracks and a timely panel discussion about Climate Change. Social events include an ice breaker reception, awards luncheon and conference banquet. Field trips to sites that demonstrate successful applications to cold regions engineering will also be scheduled. asce.org

Northwest Regional Managers Conference

April 12, 6 p.m. to 9 p.m.—Dena’ina Civic and Convention Center, Anchorage: Celebrates the industry’s successes of the past year. Special award presentations will be made to Visit Anchorage partners whose exceptional efforts have made these achievements possible. anchorage.net

May 2-3—Dena’ina Civic & Convention Center, Anchorage: Held annually, this conference brings together business, civic and government leaders from around the state, nation and the world in a strategic and educational forum to share information and ideas on moving Alaska toward a sustainable energy future. alaskarenewableenergy.org

June

April

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Business of Clean Energy in Alaska Conference

May 29-30—World Trade Center, Seattle: Follow up discussion to the Dec. 2012 Arctic Transportation Infrastructure workshop in Reykjavik; will focus on the private sector and industry response capacity, with an emphasis on assets deployed and infrastructure developed in the Arctic. institutenorth.org

March 18-20, 7 a.m. to 5 p.m.—Dena’ina Civic & Convention Center, Anchorage: This year’s theme is “$afety Pay$—at Work, Home and Play.” Labor.alaska.gov/lss/asac.html

March 19-22 —Pikes Waterfront Lodge, Fairbanks: The Northwest Regional Managers Conference is a production of the Washington, Oregon and Alaska city/borough management associations. alaskamanagers.org

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Top 49ers Luncheon October 2—Dena’ina Civic & Convention Center, Anchorage: Save the date for this annual salute to the Top 49 businesses owned and operated by Alaskans.

Alaska Coalition on Housing and Homelessness Conference October 9-11—Anchorage Marriott Downtown, Anchorage alaskahousing-homeless.org

Alaska Federation of Natives Annual Convention October 24-26—Fairbanks: The AFN Convention is the largest representative annual gathering in the U.S. of any Native peoples. nativefederation.org

www.akbizmag.com • Alaska Business Monthly • March 2013

RIGHT MOVES

Compiled by Mari Gallion

Rasmuson Foundation

Sammye Pokryfki has been promoted to Vice President of Programs. Pokryfki will oversee all programmatic strategy and staff. Cassandra Stalzer is now Communications Director. She oversees the development and implementation of the Foundation’s communications strategies and programs. Aleesha Towns-Bain has been promoted to Program Officer. Towns-Bain manages the Sabbatical Program and Recover Alaska, a joint initiative of Rasmuson Foundation, Alaska Mental Health Trust Authority, Mat-Su Health Foundation and the State of Alaska Department of Health and Social Services. Sharity Sommer will move into a Program Associate role. Previously, Sommer held the position of Communications Associate.

E3-Environmental

E3-Environmental’s newest team members are Rosetta Alcantra, General Manager, Traci Bradford and Natalie Hanson. Alcantra is a lifelong Alaskan with more than 20 years of experience in planning and consultation services for the transportation and oil and gas industries. Bradford is a Chemical and Environmental Engineer with more than 15 years of experience in project management, site assessments, sampling, environmental analyses and site remediation. Hanson is a Hydrologist and will be providing support as an Environmental Scientist for the company.

Davis Wright Tremaine LLP

The law firm of Davis Wright Tremaine LLP ann o un ce s Vane ssa Norman has joined the firm as an Associate in the Anchorage office. Norman has worked with Alaska Native tribal entities, including the federally recognized Port Norman Graham tribe, as well as with a number of Alaska Native Corporations.

Aleut Corp.

Arnaldo (Arnie) Galassi joined The Aleut Corp. as financial analyst supporting TAC’s senior management team. Galassi currently serves on the Investment Advisory Commission of the Municipality of Anchorage.

Bristol Bay Native Corp.

Optima Public Relations

Prominent South African designer and animation director Michael Clark has joined the design team at Optima Public Relations. Clark studied Information Design at the University of Pretoria.

Fechtmeyer

Clark

Bean’s Café

Bean’s Café appoints Joan Fisher Interim Executive Director after passing of long-term Executive Director, Jim Crockett. Fisher has worked in the nonprofit health care sector for more than 30 years mainly in long-term care and primary medical care.

Alaska DOT & PF

Alaska Department of Transportation and Public Facilities announces the appointment of Reuben Yost to Deputy Commissioner. He has a Bachelor of Science in Industrial Education and a Master of Science in Zoology.

US Arctic Research Commission

The Honorable Edward Saggan Itta of Barrow was appointed by President Barack Obama to the U.S. Arctic Research Commission. Itta is a respected leader who knows the Arctic through a lifetime of first-hand experience.

Alaska Division of Motor Vehicles

Amy Erickson has been selected to fill the position of Director at the Alaska Division of Motor Vehicles. Before accepting the position, Erickson worked as the Administrative Director for U.S. Senator Lisa Murkowski in Washington, D.C., and Anchorage.

Schierhorn

The Bristol Bay Native Corp. Board of Directors appointed former board member Marie Paul of Togiak to the board. Paul was first elected as a BBNC director in 2006 and served two three-year terms. She has also served as a BBNC Education Parker Foundation director since 1999 and currently serves as President. BBNC also announces the promotion of Andria Agli and the hiring of three new employees to its corporate office: Suanne Fechtmeyer, Nancy Schierhorn and Kinka Parker. Agli was promoted to Vice President, Shareholder and Corporate Relations in December 2012. Algi holds a Master of Rural Development from the University of Alaska Fairbanks. Fechtmeyer joins BBN as its Corporate Tax Manager. Fechtmeyer holds a Bachelor of Business Administration and a Master of Accounting, both from the University of Florida. Schierhorn joins BBNC as Associate General Counsel. Schierhorn holds a Bachelor of Business Administration from the University of Puget Sound and a Juris Doctorate from Williamette University. Parker joins BBNC this month as Natural Resources Specialist. Parker holds an associate degree and is currently working toward a Bachelor of Rural Development.

SLED DOGS & SOFAS & MILK

OH MY!

WE’RE OFF TO RURAL ALASKA 44

www.akbizmag.com • Alaska Business Monthly • March 2013

RIGHT MOVES ASRC Federal

Compiled by Mari Gallion BiNW

Ralph Willis is BiNW of Alaska’s new General Manager in the Anchorage office. He recently moved from Seattle after 28 years of leading BiNW’s operations in Seattle and Tacoma.

ASRC Federal has promoted Charles “Chuck” Hicks to senior vice president, finance and business operations. Hicks has a bachelor’s degree in accounting from the University of Maryland, College Park. He served six years in the Hicks U.S. Navy.

Willis

ASRC Energy Services

ASRC Energy Services has hired Joel Whitley as general counsel. He earned a bachelor’s degree in industrial and systems engineering from Georgia Tech and followed by a law degree from the University of Chicago. Whitley ASRC Energy Services also promoted Alan Growden to general manager of its E&P Technology subsidiary, which provides integrated exploration, drilling support, and geosciences services to the oil and gas industry. he will also continue as the senior business analyst for ASRC Energy Services’ professional services group which includes Regulatory and Technical Services, Engineering, E&P Technology, and Response Operations.

USKH Inc.

Adams

Amsden

Arctic Foundations Inc.

Gerondale

Dickeson

New York Life

Cindy Stevenson has been hired by the Alaska General Office of New York Life Insurance Co. as an agent for the company. Stevenson is a lifelong Juneau resident and a graduate of Juneau Douglas High School. Stevenson attended Stevenson Northern Arizona University and the University of Alaska Southeast.

The firm’s new principals are W. Dwayne Adams Jr., FASLA; Raymond Amsden, AIA; and Jacob (Jake) Gerondale, PLS. The new associates are Ursula Dickeson, Sara Lindberg and Jared VanderWeele, AIA. Adams is a Fellow with the American Society of Landscape Architects, is a graduate of Texas A&M University, and is Manager of USKH’s Landscape Architecture and Planning Division. Amsden is the Building Sciences Director and Architectural Division Operations Manager and is a graduate of the University of Oregon. Gerondale is the Manager of USKH’s Survey and GIS Division and received an associate degree from Northeast Wisconsin Technical College. Lindberg is USKH’s Environmental Services Manager. She is a graduate of Evergreen State College and received her Master of Arts from Alaska Pacific University. VanderWeele is the Assistant Fairbanks Regional Manager of Architecture . He is a graduate of the University of Detroit Mercy. Dickeson is a Technical Writer and has been with the company since 1992. She has an Ontario Diploma in Horticulture/Landscape Design from the University of Guelph in Ontario, Canada. Edward Yarmak has been named President and Eric Johnson has been named Vice President of Arctic Foundations Inc. Yarmak has been employed by AFI since 1981 and is Chief Engineer involved with estimates, design, construction and quality control. Johnson has been employed by AFI since 1981 and is Chief Engineer involved with estimates, design, construction and quality control.

PDC Inc. Engineers

Lindberg

VanderWeele

USKH Inc. has named three new principals and three new associates of the employee-owned company.

PDC Inc . Engineers announces that Colin Fay has earned his Certified Energy Auditor certification as well as his LEED-AP Operations and Maintenance certification.

Fay

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www.akbizmag.com • Alaska Business Monthly • March 2013

oil & gAs

At long last, serious work begins on Alaska’s next great oil and gas ﬁeld BY WESLEY LOY

fter 35 years of frustration, Alaska finally is on a path to achieving production from Point Thomson, one of the richest oil and gas deposits ever discovered in the state. The production level to start will be modest at 10,000 barrels per day. That barely registers against the nearly 600,000 barrels per day produced overall from Alaska’s North Slope. But make no mistake, establishing any flow at all from the remote eastern North Slope field will stand as a major victory for the state. The hope is that the inaugural project at Point Thomson, known as the “initial production system,” will lead to bigger things. Not only does it have the potential to join the likes of Prudhoe Bay, Kuparuk and Alpine as a major producing field, but Point Thomson also could spark development of other prospects in the area.

Major Construction

Coming into the winter, Point Thomson operator ExxonMobil and its contractors were launching major construction work on the ground. The activity stands in stark contrast to the years of inertia and bitter legal conflict between the state and energy giant over the dormant field. “For the first time, development of Alaska’s eastern North Slope is under way,” Gov. Sean Parnell proclaimed in 46

©ExxonMobil

Point Thomson’s Promise

ExxonMobil drilled two wells on Point Thomson’s central pad at the edge of the Beaufort Sea in 2009 and 2010. Almost everything in this July 2010 photo was temporary equipment that has since been removed. ExxonMobil is now working to prepare the pad for installation of permanent development facilities.

his Jan. 16 State of the State address to the Alaska Legislature. The Point Thomson development, he said, means billions of dollars in new investments and hundreds of jobs. It also could mean very significant tax and royalty revenue for the state. The field encompasses about 93,000 state-owned acres along the Beaufort Sea coast, next to the Arctic National Wildlife Refuge and about 60 miles east of Prudhoe Bay and the trans-Alaska oil pipeline. Point Thomson is regarded as one of the largest proven, undeveloped fields in North America. The main prize is natural gas, estimated at 8 trillion cubic feet. That’s about a quarter of all the known gas reserves on the North Slope. Gas, however, is not the first development target. Rather, ExxonMobil plans to produce a liquid hydrocarbon known as condensate. The company estimates the field holds 200 million barrels of recoverable condensate, which pays like crude oil. ExxonMobil has pledged field startup and first production no later than May 1, 2016. To make that deadline, a tremendous amount of work must be done. The project will consist of three gravel well pads, connecting roads and pipelines, a barge dock, airstrip, housing units, fuel storage tanks, and huge industrial modules to process field output.

Pipeline to Badami

ExxonMobil also will lay a new 22-mile “export pipeline” to carry the condensate to the Badami oil field to the west. There, the condensate will enter the existing North Slope oil pipeline network, ultimately flowing down the 800-mile trans-Alaska oil pipeline. Part of the above-ground Point Thomson line, which will parallel the coast, will feature a thickened steel wall to resist stray bullets from subsistence caribou hunters. The pipeline will feature a design capacity of 70,000 barrels per day, well above the 10,000 barrels per day of condensate ExxonMobil expects to produce initially. The surplus capacity will accommodate fuller Point Thomson development, and maybe production from other eastern North Slope developments. After years of effort, ExxonMobil last fall obtained the key authorizations for the field and pipeline, including a wetlands permit from the U.S. Army Corps of Engineers. During the first winter construction season, ExxonMobil plans to concentrate on building work camps, roads and pads, and the airstrip. Also, the company will install support members along the pipeline right of way. To support the construction activity, ExxonMobil is using a temporary ice road out to Point Thomson. “Depending on weather conditions, our winter construction season

www.akbizmag.com • Alaska Business Monthly • March 2013

Point Thomson Timeline

■

Development of the rich Point Thomson oil and gas field on Alaska’s North Slope has been a long time coming. Aug. 1, 1977 – Point Thomson unit formed. Sept. 30, 2005 – State holds ExxonMobil in default for failure to submit acceptable plan of development. May 8, 2009 – Fearing loss of leases, ExxonMobil begins drilling two wells at Point Thomson. March 29, 2012 – State, oil companies reach landmark legal settlement laying out development schedule. Oct. 26, 2012 – U.S. Army Corps of Engineers issues key permit for field construction. May 1, 2016 – ExxonMobil’s deadline for field startup.

■ ■ ■ ■ ■ ■

will likely run until late April or early May,” says Kim Jordan, an ExxonMobil spokeswoman in Houston. The project is hugely expensive. The budget for the pipeline alone is $253 million, and fully developing the field will cost billions.

Abundance of Contractors

About 80 contractors already have a piece of the Point Thomson action. At the top, Australian firm WorleyParsons in January 2012 announced ExxonMobil had awarded it a contract worth $115 million for engineering, procurement and construction. “WorleyParsons, working with Fluor, will provide overall project management,” WorleyParsons said. “PND Engineers, based in Anchorage, will provide infrastructure and civil design.” Lots of companies familiar to Alaskans are involved: Alaska Frontier Constructors, Lynden, Foss, NANA, Doyon, Builders Choice, Flowline Alaska and many others. ExxonMobil still had not announced who would build the major field modules, or where. Most likely, these will be fabricated Outside and transported by sealift to Point Thomson. ExxonMobil has scheduled module installation and commissioning for 2015.

Dispute Settled

Point Thomson is coming alive only be

www.akbizmag.com • Alaska Business Monthly • March 2013

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cause the state and leaseholders were able to settle a bitter legal dispute over the field. The state had anticipated production ever since ExxonMobil, in 1977, discovered oil and gas in what’s known as the Thomson Sand reservoir. Several successful wells were drilled, and ExxonMobil submitted plans of development for the field on a nearly annual basis. These never led to actual production, however, with ExxonMobil citing such impediments as the lack of a North Slope natural gas pipeline, the field’s extreme subsurface pressure and other technical challenges, and unfavorable state tax treatment. Growing increasingly impatient, the state’s former oil and gas director, Mark Myers, in September 2005 issued a landmark decision holding ExxonMobil in default, saying the company’s 22nd plan of development was unacceptable. Myers said the company’s long record of nondevelopment and delay had made a “mockery” of its obligations to the

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Major features of the planned “initial production system” at Point Thomson.

state as owner of the oil and gas estate. And he said the absence of a gas line, or the view that Point Thomson wouldn’t be profitable enough, were poor excuses for not producing at least some of the field’s riches—the hydrocarbon liquids. Three Alaska governors—Frank Murkowski, Sarah Palin and Sean Parnell—would back the position Myers staked out. The state moved to break up the Point Thomson unit and invalidate the underlying leases, with an eye toward reoffering the acreage for lease. Predictably, ExxonMobil and its partners headed to court to defend an asset worth billions. The conflict had reached the Alaska Supreme Court when the state and the oil companies, on March 29, 2012, reached a settlement that closed the case and laid out a schedule for phased development at Point Thomson. While the deal does not guarantee production, state officials say the oil companies will lose acreage at Point Thomson if they renege.

The deal also spawned a reshuﬄing of Point Thomson ownership with Chevron assigning its sizeable interest to ExxonMobil. The other major leaseholders are BP and ConocoPhillips. Dan Sullivan, the state’s natural resources commissioner, led negotiations for the settlement, heading off possibly years of further litigation. “We see this as a very important strategic investment for the state, for three principle reasons,” Sullivan said. First, extending oil and gas infrastructure eastward to Point Thomson should encourage exploration in the frontier area, he said. Second, removing the legal cloud over Point Thomson and its vast gas resource helps further the state’s longtime goal of a North Slope gas pipeline. And third, Point Thomson development is expected to generate up to 800 sustained jobs, Sullivan said. But making Point Thomson produce will be an exceptional challenge. The

www.akbizmag.com • Alaska Business Monthly • March 2013

reservoir is complex, and collecting the condensate is tricky.

An Exceptional Challenge

The field is largely offshore beneath the Beaufort Sea. Rather than build an offshore production island, ExxonMobil will drill extended-reach wells from shore. These wells will angle out to tap the reservoir. Most of the Point Thomson resources are contained in what’s known as a “retrograde condensate reservoir.” These tend to be deeper, with higher pressures and temperatures, than conventional reservoirs. The condensate is entrained in the natural gas within the reservoir. The problem is, if gas is withdrawn too quickly, reservoir pressure drops and the condensate can fall out and become trapped forever underground. ExxonMobil will use a process known as gas cycling to produce the condensate. This involves using two types of wells in tandem. Producer wells will bring up “wet” gas for processing and collection of the condensate. Injector wells will shoot the remaining dry or “lean” gas back down for storage and future sale. Because of Point Thomson’s high pressure, the wells and other facilities at Point Thomson will need to be much more brawny than the typical oil wells at Prudhoe Bay and other North Slope fields. This makes them more expensive. During the legal dispute, ExxonMobil went ahead and drilled a pair of wells on Point Thomson’s main, or central, well pad. Drilling and testing wrapped up in October 2010. Originally, the company had planned to use one of the wells as a producer and the other as an injector. But because of higher than expected levels of acidic “sour gas,” liners must be installed in the wells. While both can be used as injectors, ExxonMobil said it will need a third well to serve as the field’s initial producer. The sour gas issue could foreshadow many challenges to come. As with any new field, Point Thomson might or might not prove as productive as hoped. According to the state at the time the legal settlement was reached, the condensate project is expected to provide “critical information for the next phase of development.” 

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Journalist Wesley Loy lives in Anchorage.

www.akbizmag.com • Alaska Business Monthly • March 2013

oil & gAs

A Tale of Two Rigs Photo courtesy of Spartan Offshore Drilling

The Spartan 151 rig, wintering over at Port Graham.

Cook Inlet jack-up rig brieﬁng BY MIKE BRADNER

eologists have long believed Cook Inlet to be an underexplored hydrocarbon basin. Alaska’s first commercial oil field in modern times was discovered at Swanson River, an onshore oilfield on the Kenai Peninsula that is still producing. That led quickly to a rush of exploration nearby, including in waters of the Inlet offshore. The discoveries that resulted were to help shape Alaska, including establishment of a major industrial base for the Kenai Peninsula with its natural gasbased manufacturing. But the exploration of Cook Inlet was cut short. In 1970, just as the first Inlet oil and gas fields were being developed, the discovery of world class oil deposits on the North Slope diverted the industry’s attention. Money that ordinarily would have been spent in a second round

of Cook Inlet exploration went to the North Slope, and there has not been sustained exploration until recently.

More to be Discovered

State geologists are confident that there are more oil and gas fields to be discovered in the inlet, however. In Cook Inlet there are the handful of larger discoveries and a number of small deposits found recently, but many mediumsized finds that were expected have not been made. They are still out there. But where? Many believe the larger unfound deposits are in deeper waters of Cook Inlet. Exploration drilling with drillships in the 1960s and 1970s actually found some of these or at least indications of them. But at the time they were not large enough for the companies to pursue. However, the well logs

and other data have long been made public, and now, a new generation of oil entrepreneurs, using new exploration tools, have been working to get more exploration done. Lack of a critical technology—a jackup rig for drilling in deep water—has been a major obstacle, until recently. A jack-up rig is a floating barge that serves as a platform for a drill rig. It has large, vertical steel legs attached. Pulled into position with tugs, the rig lowers the legs to the sea bottom and literally jacks itself up from the water surface, creating a stable platform for drilling. When the well is finished, the drill platform is jacked back down, the legs raised and the unit is pulled away. There has been recent onshore exploration drilling in the Cook Inlet basin with drill rigs designed to work on

www.akbizmag.com • Alaska Business Monthly • March 2013

land, and many of these have yielded modest discoveries of natural gas. The big prize—more oil—appears to lie offshore, in the deep water.

Unlocking the Prize

Getting the Rigs to Alaska

The story of how these two rigs got to Alaska is a tale of entrepreneurship, with individuals and small companies promoting the exploration. Things have not been easy for either Furie or Buccaneer. Furie brought in the first jack-up rig, the Spartan 151. The effort to do that started in 2005 when Escopeta, a small independent, acquired Cook Inlet leases. Its president, Danny Davis, worked with geologists who believed the inlet had potential for very large gas and oil deposits at deeper than had been drilled before.

Now there are two jack-up rigs, Spartan Drilling Co.’s Spartan 151 rig and the Kenai Offshore Venture’s Endeavour rig, that will hopefully unlock this prize. Kenai Offshore Ventures is owned by Buccaneer Energy, an Australian independent that owns offshore Cook Inlet leases, and Ezion Holdings of Singapore. The State of Alaska also has a minority interest in this rig, through an investment made by the Alaska Industrial Development and Export Authority. The Endeavour was in Homer through much of the winter, where modifications and some repairs were being made, and was to be moved to its first drill location off Anchor Point in early spring. The Endeavour is a heavy rig designed for the rough weather of the North Sea. It can operate in water depths of 300 feet. The Spartan 151 arrived in Cook Inlet in fall, 2011, and partially drilled its first well for its customer, Furie Operating Alaska (formerly Escopeta Oil) before ceasing operations for the winter and moving to Port Graham, south of Homer, for winter storage. In 2012 it returned to the first well location and drilled a second nearby well. Results of the drilling are still confidential, and the Spartan rig has now been returned to Port Graham for the winter. Spartan’s rig is smaller and can operate in water depths up to 150 feet. However, it is expected to also be less expensive to operate, which means that it can explore prospects of more modest size. The jack-up rig Endeavour – Spirit of Independence.

These were too far offshore to drill with high-angle directional wells from rigs on land, so Davis started working to get a jack-up rig from the Gulf of Mexico brought to Cook Inlet. U.S. Sen. Ted Stevens helped Davis get an exemption from the U.S. Jones Act to use a foreign “heavy-lift” vessel to carry the jack-up rig, which would have to travel around the tip of South America. The Jones Act requires cargo transported between U.S. ports to be

done using American ships. In 2006 there were no U.S. vessels suitable to transport the rig. Unfortunately, Davis’ financing went sour that year and he had to postpone the project. He put the financing back together in 2010, and Davis contracted with Spartan Offshore Drilling for use of the Spartan 151 jack-up rig. However, the federal administration had changed, and Davis was denied a renewal of the Jones Act exemption.

www.akbizmag.com • Alaska Business Monthly • March 2013

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By then there was a U.S. vessel, a barge, that arguably could have carried the rig to Alaska, but Davis judged that the trip around South America too hazardous with the barge. A large heavy-lift ship was safer, although it was foreign. Davis was meanwhile running out of time on his lease terms and decided to load the rig on a foreign ship and head north in 2011, hoping to meanwhile get the exemption. That never happened, but the foreign ship dropped off the rig in Vancouver, B.C., Canada, for repairs to damage caused by storms, and U.S. tugs hauled the rig the rest of the way to Cook Inlet. The government, meanwhile, levied a $15 million fine against the company for the Jones Act violation. Davis lost his job over the issue, and new management took over Escopeta and renamed the company Furie Operating Alaska. Despite the drama, Furie was able to get the rig on its first location in fall 2011 to drill the first well. Furie announced a discovery, but no more information has been released on the well. Meanwhile Buccaneer Energy had offshore Cook Inlet leases, and in 2011 developed a plan to bring a larger jackup rig from Asia and had found a suitable rig. The company approached AIDEA, the state development corporation, to help finance the deal. At the time it seemed doubtful Escopeta would be able to get the exemption and get the Spartan 151 rig north, and state officials were anxious to get at least one rig to the inlet because of the developing shortage of natural gas in the region. AIDEA decided to invest with Buccaneer and its partners in the rig through Kenai Offshore Ventures, the company formed to own the Endeavour. As it happened, the Spartan 151 rig did get to the inlet in 2011, but the rig was committed to drill wells for Furie. Buccaneer went ahead with its plan, and the Endeavour, with AIDEA’s help, came to Cook Inlet in late 2012. Because it was coming from a foreign port there was no Jones Act issue with the use of a foreign heavy-lift vessel. The Endeavour has had its own set of problems, however. Substantial work needed to be done on the rig before it could go to work, and that had to be

www.akbizmag.com • Alaska Business Monthly • March 2013

The Spartan 151 rig at work in Cook Inlet.

done in Homer and took much longer than expected. It was good business for the City of Homer for the moorage fees paid and good wages for local welders and other workers, but it delayed the rig in drilling its intended first well in north Cook Inlet. The plan is now to drill a second target, a gas prospect offshore Anchor Point named Cosmopolitan, once the Endeavour receives its final certifications and approvals from government agencies. Once that well is drilled the plan is for the Endeavour to move to drill other prospects.

Photo courtesy of Spartan Offshore Drilling

Importance of the Two Rigs

Despite all the problems, two things are important about the jack-up rigs: First, whatever the financial fallout on the thinly capitalized independent companies, the rigs are here, and they will be drilling. Second, it is important that there are two rigs. In these days, after the 2010 Gulf of Mexico undersea blowout, it’s a good idea to have a back-up rig available for any offshore drilling, just in case. So far there is no actual requirement for this in Cook Inlet but there could

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be someday. The Alaska Oil and Gas Conservation Commission, the state’s oil and gas well safety regulatory body, briefly considered this after the Gulf of Mexico blowout, but did not make the requirement. However, the fact that small independents are involved means that the state’s regulatory agencies—the AOGCC for well safety and the Department of Environmental Conservation for oil spill

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www.akbizmag.com • Alaska Business Monthly • March 2013

oil & gAs

Alaska Oil Policy ‘Maximum Beneﬁt’ BY BRAD KEITHLEY

Millions of barrels per day

2.0

1.5

History

Decline Rate

15%

Billions of Barrels produced

1.3

3.6

7.5

1.0

0.5 Zero Investment ~ 15% decline

1990

2000

rticle VIII, Section 2 of the Alaska Constitution requires that “[t]he legislature shall provide for the utilization, development, and conservation of all natural resources belonging to the State, including land and waters, for the maximum benefit of its people.” As we have often heard during this legislative session, many read this provision as having significant relevance to the current oil tax debate, arguing that the provision requires the state to tax oil production at high rates in order to derive the “maximum benefit” from the oil for the state’s citizens. That argument overlooks an important part of the constitutional provision, however. The provision does not say “for the maximum benefit of its current people.” Instead, the provision requires that the state’s natural resources be used for the maximum benefit of its people—all of its people—both in this and future generations. That is a critically important point in the current oil tax debate. 54

2010

2020

$1 -$1.5 bn/yr ~ 6% decline

2030

Some argue that the governor’s proposed bill fails because it will result in an immediate reduction in state revenues, which may last for a few years. Admittedly, that may adversely affect some of Alaska’s current people who benefit from marginal state revenue. But that is not the relevant point. Instead, the relevant point is whether tax reform will result in a greater benefit to all Alaskans, both in this generation and the next. That is the true constitutional test.

Potential Scenarios

For me, the above graphic from the 2006 phase of the oil tax debate—yes, it has been going on that long—makes the point best. That graphic shows the potential cumulative effect over time of three different investment scenarios. Starting in 2006, the line to the left (in red) depicts the potential effect of making zero additional investment in the North Slope oil fields. That results in a 15 percent

$2 - $3 bn/yr ~ 3% decline

2040

2050

annual decline in production, with production falling roughly to 300,000 barrels per day—a potential shutdown point for the Trans Alaska Pipeline System (TAPS)—within a short timeframe. The line in the middle (in green) depicts the potential effect of continuing to maintain investment levels at the then current rate, which in 2006 was roughly $1 billion to $1.5 billion per year. Essentially, it is the status quo case. That results in a 6 percent annual decline in production and reaches the same 300,000 barrels per day point several years later, in the late 2020s. The line to the right (in blue) projects the potential effect of doubling the then current overall investment level to roughly $2 billion to $3 billion per year. That results in a projected decline rate in the range of 3 percent, and extends field life—the point at which production reaches the same 300,000 barrels per day point—to nearly 2050. Obviously, the differences between the various lines start out small. Focus-

www.akbizmag.com • Alaska Business Monthly • March 2013

ing on the middle and farthest right lines, the differences in production levels in the first few years are minor. Over time, however, the cumulative effect becomes significant. That is best shown by the circle charts in the upper right of the graphic. Those charts estimate the number of barrels which would be produced after 2006 at the different investment levels. The amounts are simply an aggregation of what is captured under each of the decline curves shown in the lower portion of the chart. The charts estimate that 1.3 billion barrels of additional oil would be produced after 2006 under the no investment case and 3.6 billion barrels of additional oil under the status quo case. The amount of additional oil, however, jumps to 7.5 billion barrels—or more than twice the “status quo” amount— by doubling the investment levels. These numbers provide an important means for understanding the potential impact of a reduction in oil taxes.

The Importance to the Tax Debate

Assume for example that the government’s (state and federal) current overall tax and royalty share of the value of oil production is 70 percent. Assume also that in order to spur the added investment contemplated by the third scenario it is necessary to reduce the government’s share to 50 percent. Charting those changes, it is easy to imagine that during the first few years, annual revenues resulting from the reduction in the government’s tax rate will fall below current revenues under the existing rate, even as production levels increase, because the production levels under both scenarios remain relatively close. Over time, however, the proposed rate will produce substantially more value for Alaskans of all generations. Assuming, for example, the net oil value against which the government’s share is assessed remains constant at $70 per barrel, the higher tax rate will produce approximately $175 billion in additional revenue to the government over the remaining production life. This is the result of taking $70 per barrel, times the tax rate of 70 percent— for an overall level of government take equal to $49 per barrel—times the 3.6

billion barrels of cumulative production anticipated by the higher tax/lower investment scenario. Using the same chart, the lower tax rate will produce approximately $260 billion in additional government revenue over the remaining production life, or nearly 50 percent more in value, notwithstanding the substantially lower tax rate. This is the result of taking the same $70 per barrel in assessed value, times the lower tax rate of 50 percent— for an overall level of government take equal to $35 per barrel—times the 7.5 billion barrels of cumulative production anticipated by the lower tax/higher investment scenario. Of course, some argue that there is no guarantee that a lower tax rate will result in increased investment. That is a misleading argument, however. Given the imperative of maximizing returns, at some rate private investors will find it appropriate to increase the level of investment they are making in Alaska. The challenge is finding the appropriate rate. Given the potential size of Alaska’s resource—and the prize Alaska could realize from increasing investment— Alaska’s policy makers have a great deal of flexibility in finding the appropriate rate. Based on the assumptions identified earlier, Alaska could reduce the government’s share all the way to 35 percent—or half the existing rate—and still come out dollars ahead over the remaining field life if that was necessary to spur the levels of investment required to achieve the higher production levels.

Tax Policy Approach

Of course, I am not suggesting that Alaska adopt the lowest tax rates it can in order to come out a little bit ahead. If increased investment—and production—can be achieved at higher rate levels, then maintaining the higher rates is likely justified. By the same token, however, Alaska’s policy makers should not be driven by an obsessive desire to keep current tax rates at a level which are designed to maintain state revenues at or near current levels. Achieving “maximum benefit” for the state means the largest cumulative benefit—not that measured only in one or two years. As demonstrated above, sometimes that means

accepting lower current revenue levels for long-run benefit. Additionally, Alaska’s policy makers should not become excessively cautious by attempting to determine—and set Alaska’s tax rates at—the precise point at which Alaska becomes competitive. The global oil and gas investment environment, like most other global business environments, is a constantly changing place. What may be marginally competitive today may become uncompetitive tomorrow as a result of the development of other investment opportunities or changes in policy elsewhere. As the graphic shows, the downside for Alaska of missing the competitive window is significant. Cutting Alaska’s current tax rates some, but not enough to make the state consistently competitive, puts at risk the recovery of the approximately 4 billion additional barrels potentially available through increased investment. This is not a time to nickel and dime the state’s response to the challenge. The potential rewards—and the potential lost opportunity costs—are sufficiently great that Alaska’s policy makers should make certain that any reform puts Alaska squarely within the zone of competitiveness and not try to play the edges. What should drive Alaska’s policy makers is the desire to identify the tax rates necessary to keep investment at the level required to achieve the greatest possible overall revenue levels from state lands on the North Slope. That is what produces the “maximum benefit” to all Alaskans, not the levels that may produce merely the greatest revenue levels in the next two, five or even 10 years.  Bradford G. Keithley is a Partner and CoHead of the Oil & Gas Practice at Perkins Coie, LLP. He maintains ofﬁces in both Anchorage and Washington, D.C., and is the publisher of the blog “Thoughts on Alaska Oil & Gas” (bgkeithley.com).

www.akbizmag.com • Alaska Business Monthly • March 2013

oil & gAs

Incentives for Oil and Gas in Alaska

laska’s incentives for oil and gas exploration and development may be some of the most generous in the world. Maybe too generous? Some think so, and the views on this are becoming sharply divergent. Some believe we’re giving away too much to the industry through tax credits on capital investments in oil projects, or at least that some of the credits can’t be seen as linked to producing new oil. Gov. Sean Parnell now holds this view, and so does Brian Butcher, the state revenue commissioner. “There’s not an apparent connection between some of our credits and new production,” Butcher says. The commissioner is speaking mainly of a 20 percent tax credit for all capital investment, whether for new oil facilities or for major maintenance. Other state tax incentives are more directly connected to new oil, such as a credit on the cost of drilling exploration wells.

Lost Revenue

However, also worrying Parnell and Butcher are the financial effects of the tax credits, in terms of cost to the state treasury, which are becoming very substantial. In Fiscal 2014, the budget year beginning in July this year, the credits will cost the state an estimated $1 billion in lost revenue. This is of real concern because state revenues are already turning down because of a decline in oil production. Parnell proposes to end the 20 percent tax credit as part of his bill to revamp the state’s oil and gas production tax, and encourage more investment. There are other views on Parnell’s proposal, however. State Sen. Berta Gardner, a Democrat from Anchorage, believes the governor’s proposal to end the 20 percent capital investment tax credit, and to change another tax credit, would hurt smaller companies hoping to develop new oil fields. 56

Diverging views on generosity, effectiveness BY MIKE BRADNER The ability to charge off one-fifth of capital investment against tax liability, or to sell the tax credits to other companies, basically helps a firm recoup capital investment faster in a project and for the project to become profitable. That’s important to all industry investors but it’s particularly important to smaller and medium-sized companies now working in Alaska. “We should be doing everything we can to encourage a new generation and diversity in our oil industry so we’re not so dependent on the major companies. The governor’s proposal pulls the rug out from under these small companies,” Gardner says.

Production Tax Overhaul

As a part of this overhaul of the state’s oil production tax Parnell proposes to end the 20 percent capital investment tax credit. While this indirectly is a tax increase on industry, the other part of the proposal is to terminate the “progressivity” formula, which hikes tax rates on oil when oil prices climb. The combined effect of these changes is to increase the front-end tax burden somewhat, by taking away the tax credit, but to give the industry opportunity for more profit in the long run by ending progressivity. The progressivity formula is mainly responsible for hiking Alaska’s taxes on oil to some of the highest levels in the world at higher oil prices, which has made the state unattractive for new oil investment. The governor believes the readjustment of the gains between the companies and the state will be greater in the longterm. The companies get the opportunity for more profit if oil prices rise. The state gives up some of its share of these gains. However, the state gains by not having the near-term liability of the tax credits hanging over state finances.

www.akbizmag.com • Alaska Business Monthly • March 2013

“We should be doing everything we can to encourage a new generation and diversity in our oil industry so we’re not so dependent on the major companies. The governor’s proposal pulls the rug out from under these small companies.” —Berta Gardner, State Sen.

These credits are a fixed obligation in the near-term, with a cost that is mounting, Butcher says. The state revenues foregone, however, are off in the distant future and may not really materialize because so many variables, including oil prices, can affect the outcome. Parnell is not proposing to change oil tax credits linked to exploration and new oil development. However, a major part, possibly more than half—the $1 billion estimated cost for Fiscal 2014—is for the 20 percent general capital investment tax credit—not the exploration credits.

Incentives Summary

Here is a summary of Alaska’s oil and gas tax incentives: For starters, there’s the 20 percent credit for industry capital investments that are qualified (the Department of Revenue approves the types of expenditures). These credits can be applied against a company’s Alaska state production tax liability. The formal name for this is the Qualified Capital Expenditures Credit, and it is found in statute AS 43.55.023(a). This is a credit, not a deduction, so it is dollar-for-dollar against taxes owed. Parnell would end this in his legislation now before the state Legislature. There is also a loss carry-forward tax credit, the Carried-Forward Annual Loss Credit, AS 43.55.023(b), that allows companies to write off 25 percent of capital investments incurred while exploring or developing an oil and gas find before production starts and income is received. These credits against taxes are spread over two years, under present law, for the North Slope and one year for activity in Cook Inlet and certain remote Interior basins. These can also be cashed out if a developer does not yet have production and tax liability against which to apply the credits. After documentation is approved by the Department of Revenue, either a certificate is issued that can be sold to another company with oil and gas production and tax liability, or the state can write a check to the company.

The governor’s proposal would end the cash-out feature of this. The expenses could still be credited but only against production tax liability. There are additional tax credits that are incentives for small producers and developments in remote, unexplored basins of Interior and western Alaska (informally termed “Middle Earth”), that are in AS 43.55.024(a) and (c). These credits cannot be sold or cashed out, and can only be applied to tax liability. One more credit is the Well Lease Expenditure Credit, in AS 43.55.023(I), that allows credits for 40 percent of capital investments in lease development, including intangible drilling and development costs, that applies only in Cook Inlet or the remote “Middle Earth” unexplored basins. These credits can be applied against production tax liability or can be “cashed out” by the state. Alaska Native Corporations pushed for the “Middle Earth” incentive because they need all the help they can get in attracting companies to explore and invest in “wildcat” test wells, which can be very expensive given the difficult logistics. There is another set of incentives that relate only to exploration. The Alternative Tax Credit for Oil and Gas Exploration, in AS43.55.025(a)(1)–(4), is a tax credit for up to 30 percent and 40 percent of qualified drilling and geophysical exploration expenses if the work is done within a certain distance from known oil deposits or producing fields. The combined effect of these tax credits, the capital investment, exploration and loss carryforward, can see as much as 50 and 60 percent of exploration costs—or more—paid for by the state.

Cook Inlet Incentives

For offshore waters of Cook Inlet there is yet another incentive. For a company bringing a jack-up rig to Cook Inlet to explore prospects in deeper waters too far from shore to reach with a land rig drilling directionally, almost all the well’s costs up to $25 million can be

paid by the state. This is known as the “Jack-Up Rig Credit” and is found in AS43.55.025(a)(5) & (I). No explorer has yet qualified for this credit–there are certain qualifications– but two jack-up rigs have been brought by companies to Cook Inlet in 2011 and 2012, partly in response to the incentives. Under this program, the first company to drill a deep test well reaching down the pre-tertiary geologic zone (which is unexplored in Cook Inlet), can get 100 percent of well costs up to $25 million; a second well can get 90 percent of costs paid, again up to $25 million, and a third well can get 80 percent of costs covered. One catch is that this special jack-up rig incentive requires all three wells to be drilled by the same drill rig but for three different oil companies. This complicates which of the jack-up rigs may actually get the incentive, and when. Additionally, the payment can go only to one of the rigs. One other catch is that if a discovery is made, half of the grant made by the state has to be repaid. Like the general exploration tax credits and the Net Loss Carry-Forwards, these credits can be cashed out, with the state writing a check. Interestingly, Buccaneer Energy, one of the two companies that brought jackup rigs to Cook Inlet, has said it doesn’t really need the jack-up incentive because the array of the state’s other tax credits are generous enough. Also, those tax credits don’t have to be repaid if the drillers are lucky and make a find. For Cook Inlet, there is also no effective state production tax on oil and gas produced in Cook Inlet, although royalty is paid to the state if the land is stateowned (if not, royalty is paid to whoever the landowner is, a private owner or the federal government). State production taxes are mostly on the North Slope.  Mike Bradner is publisher of Alaska Legislative Digest and is also a former Speaker of the state House of Representatives.

www.akbizmag.com • Alaska Business Monthly • March 2013

trAnsPortAtion

The Evolution of the Ice Road Photo courtesy of Peak Oilfield Service Co. LLC

Peak Oilﬁeld Service Co. LLC building an ice road on the North Slope.

Changing regulations and new innovations minimize impact BY PAULA COTTRELL

ce roads in Alaska date back to the 1940’s when the United States Navy began oil and gas exploration in the Arctic. By bulldozing roads directly on the tundra, they destroyed vegetation and thawed the underlying permafrost, leaving ditches that are still visible today across the landscape. Road construction techniques have improved considerably since that time as industry, researchers and agencies have learned more about the environment and how to safely build temporary roads in the winter months that won’t cause damage to Alaska’s tundra. When Dave Cruz, CEO of Cruz Construction, began constructing ice roads in 1978, standard practice for construction consisted of a conventional water truck bouncing down the road spraying water. “There was no pre-packing in those days,” says Cruz. “We just poured the water on and kept on moving.” Eric Wieman, ice road project man58

“Cat trains were initially used to pack down the snow and build roads for access without regard to tundra damage and water usage. A lot has changed just in regulations and permitting alone.” —Dave Cruz CEO, Cruz Construction

ager for Peak Oilfield Service Co. LLC relates. “Cat trains were initially used to pack down the snow and build roads for access without regard to tundra damage and water usage. A lot has changed just in regulations and permitting alone,” he says. Peak and Cruz Construction have been building ice road infrastructure on the North Slope for decades. This season, Peak has built and maintained almost 70 miles of BP and ConocoPhillips roads that include sections of the ice road to Alpine, the Colville River and Kuparuk while Cruz has been busy with Savant’s 28-mile ice road to

Badami and Linc Energy’s 100-mile snow trail to their new drilling site just outside of Umiat. Alaska Frontier Constructors, another player in North Slope ice road construction, built a road from Badami to Point Thompson for ExxonMobile as well as a few projects for Rexall and Pioneer.

Working on Nature’s Schedule

Successful ice road construction often relies on working with Mother Nature’s schedule. “Snow on the North Slope comes early—usually in September and October,” says Cruz. “There is minimal

www.akbizmag.com • Alaska Business Monthly • March 2013

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Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun.

Open Period for Tundra Travel Open Dates Unavailable Based on Foothills Restrictions

SOURCE: NOAA

1970

1980

1990

2000

Time period when roads are open for travel on the Alaska North Slope, since 1970. A longer bar indicates a longer period of time during which the roads are open for travel. (Data from Alaska Department of Natural Resources.)

ransportation on the frozen Arctic land depends on the use of ice roads. Rising temperatures are leading to a shortening of ice road transport seasons and the melting ice roads are creating transportation challenges. The opening dates for tundra roads in northern Alaska have shifted two months later from early November (pre-1991) to January (recent years), dramatically decreasing the potential work period during which ice roads can be used for transportation. It should be noted that the decrease in time of tundra travel is not only a function of warming, but also of changes in regulatory criteria.

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—Dave Cruz CEO, Cruz Construction

snowfall November through January so the task becomes a matter of preserving the snow you do get at the beginning of the season.” Because DNR regulations require six inches of snow and 12 inches of frost before an ice road can be used, it becomes a matter of “driving the frost down.” Measuring snow can be as simple as sticking a ruler in the snow and recording the data, but according to Wierman, historicaly a cone penetrometer was used to record frost depths. “A penetrometer works by counting the blows that it takes to pound a post into the ground,” he says. “The test is calibrated and used at several points along the road to gauge the integrity of the ice.” Modern times, however, have brought thermistor technology to the ice road process. “Thermistors are remote sensors that read the temperature of soil and air,” says Cruz. “The data is recorded on memory sticks and collected on laptops, but current technology allows for remote readings to be taken across the Internet.” Along the 100-mile snow trail to Umiat, Cruz estimates they have approximately 15 thermistors collecting data on ice conditions. Because oil companies operating windows are dictated by access, getting an early start on the ice road building process can add weeks to a project’s production schedule. “By capturing the snow that does fall early on, we are able to build a base sooner,” says Cruz. “Every day it takes longer to build the road is one day less it gets to be used for a drilling program or even just to provide access to a worksite.”

Summer Approved Vehicles

The earliest a contractor can begin work on an ice road tundra project is August

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www.akbizmag.com • Alaska Business Monthly • March 2013

“Rural Alaska construction projects present an array of logistical challenges, which can adversely affect the project if they are not properly managed. Experienced project managers claim rural Alaska construction is 90 percent logistics and 10 percent construction, and tedious planning was key to overcoming the never-ending logistical hurdles on this project.” —Chris Humphrey Engineering Manager QAP’s Western Alaska Division

15, and even then access is limited to summer-approved vehicles. “As additional equipment becomes approved for summer use on the North Slope, it is easier to get a jump start on pre-packing the snow,” says Wieman. Rolligons, large all-terrain vehicles, have long been the standard for packing down snow, but Tucker Sno-Cats with smooth tracks are also being used to prepack and drive the frost down, according to Wieman. Tuckers Peak has started utilizing a technique over the last few years that combines using a rolligon with a water tank that can spray water off the side of the vehicle. “We make one pass down the snow and then spray water on it at a rate that saturates the snow, but doesn’t melt it,” says Wieman. “We end up having a layer of ice about one to two inches thick that helps protect the tundra while reducing the amount of insulation provided by the snow so that the area that the tundra freeze faster than if the snow were just packed down” he adds.

Water Usage

Water, an important component to making an ice road, is collected from lakes in the area. The Alaska Department of Fish and Game is responsible for issuing water use permits that take into account the telemetry of the lake. “Lake water levels and fish species play a large part in determining whether or not you can use a lake as a water source,” says Wieman. “Calculations are made 62

www.akbizmag.com • Alaska Business Monthly • March 2013

Photo courtesy of Cruz Construction

Cruz Construction building an ice road to Badami.

to determine how much fresh water the fish need to stay oxygenated and water restrictions are based on that.” Even modern technology has improved the basic task of collecting water. “Fish screens are used to keep from sucking fish into the tank and water flow is adjusted to ensure fish are not sucked up against those screens,” Wieman says. “Before the screens, stickleback fish would end up getting sprayed and froze to the road attracting fox who wanted to feed on the frozen fish.”

Building Schedule

Cruz’s road to the Savant oil field is 35 feet wide and six inches thick. While the company can build about a mile of ice road a day, progress can be greatly slowed by the weather. “Storm events and phase three conditions can bring a project to a halt,” says Cruz. “It becomes a matter of keeping your people safe and doing the best you can with the conditions.” For the 100-mile snow trail to Umiat, Cruz worked from the first of November through January building the road until they were approved to begin hauling loads to Linc Energy’s site. “We are using 11 all-terrain vehicles to transport 250 loads to the site, which includes a 110-person mobile camp, the drilling rig and all of the drilling support equipment,” says Cruz. Transporting at this volume under such a tight work window does have it challenges. “There is a lot of coordinating involved, but Linc Energy is very experienced with winter time activities,” says Cruz. “By drawing on each

www.akbizmag.com • Alaska Business Monthly • March 2013

Photo courtesy of Peak Oilfield Service Co. LLC

Peak Oilﬁeld Service Co. LLC using a Caterpillar grader for ice road construction and maintenance.

other’s knowledge, we were able to accomplish a lot of work successfully in a small amount of time.”

Photo courtesy of QAP

Project Specific Ice Roads

QAP removed overburden from the pit area at the Cheeching Mountain quarry prior to blasting for rock, which was vesicular basalt, a volcanic rock. The overburden was ripped with a D10 and then loaded into trucks with a Hitachi 800 excavator. In some cases the overburden was pushed rather than hauled away. The rock was used for the Chefornak Airport Relocation project.

QAP also used Volvo A40 rock trucks to expedite the water hauling process for the Chefornak ice road. Extremely cold temperatures generated quick ice, which provided a watertight seal in the dump box. Photo courtesy of QAP

When the village of Chefornak needed to relocate its airport, logistical challenges required some unique solutions. “Rural Alaska construction projects present an array of logistical challenges, which can adversely affect the project if they are not properly managed,” says Chris Humphrey, engineering manager for QAP’s Western Alaska Division. “Experienced project managers claim rural Alaska construction is 90 percent logistics and 10 percent construction, and tedious planning was key to overcoming the never-ending logistical hurdles on this project,” he adds. The Chefornak Aiport Relocation project required 115,000 cubic yards of subbase and 20,000 cubic yards of CASC to be transported five and a half miles from the quarry at the base of Cheeching Mountain to the new runway site. “Because of the swampy nature of the area, the material had to be mined and hauled during the winter months when an ice road could be build,” says Humphrey. The ice road in Chefornak was constructed over tundra and several lakes using a blend of water, ice chips and snow, according to Humphrey. “The road was plowed, bladed and shaped using a road grader and bulldozer. The bladed surface was covered with several layers of water via a water truck result-

www.akbizmag.com • Alaska Business Monthly • March 2013

Photo courtesy of QAP

QAP’s exploration crew spent several days locating and pioneering a 5.5-mile-long ice road to the Cheeching Mountain quarry. The crate being pulled by the 650 dozer contains a small generator and a Hilti high powered drill. The crew drilled an abundance of test holes to locate water and determine if the ice was thick enough for safe travel. A D10 dozer requires three feet of freshwater ice for safe travel. If the water is brackish the required ice thickness doubles.

ing in a product that was a hard, drivable surface,” he says. “The ice road required more than 1.5 million gallons of water for initial construction,” says Humphrey. But building the road was just half of the battle. “A severe storm can drift the road shut in less than an hour. QAP’s ice road maintenance crews worked around the clock plowing snow and repairing ice to keep the project moving forward,” he adds. It took approximately 30 days to haul the nearly 160,000 cubic yards of material from the quarry to the runway site. “We were running against the clock and had to adhere to a tight schedule to get all of the hauling completed before spring,” says Humphrey. QAP was successful in its race against mother nature and the Chefornak Aiport Relocation was completed in the fall of 2011. “Rural Alaska communities are isolated and underdeveloped, thus mobilizing and maintaining project resources is extremely challenging,” says Humphrey. “I’m proud of our western Alaska project management staff that planned this project to a ‘T’.”  Paula Cottrell is an Alaskan author.

www.akbizmag.com • Alaska Business Monthly • March 2013

special section

Building Alaska

Trends in Construction Project Delivery

Workers perform contruction on the Kodiak Public Library, a design|assist collaborative project with Cornerstone General Contractors and MRV Architects.

Morphing methods, changing times

BY MARI GALLION

n economically challenging times, companies often need to modify the way they do business in order to stay in business—that is, they need to provide the services that the client wants, even if it’s not the way it’s always been done. In the commercial construction business, the go-to project delivery method has traditionally been design|bid|build. Mike Prozeralik, principal architect and president of kpb architects says, “For the longest time the industry was: You meet with an architect, they design the building, as the client you go out into the competitive world and you bid it, and the owner may elect to select the lowest bid, or another bid that he thinks is more qualified.” However, Prozeralik adds, when using the design|bid|build project delivery method, there’s always the potential for changes due to change 66

order and scope creep, which is where unknown factors and challenges in a project are discovered after the project has commenced. Those changes, according to Jeff Koonce of kpb architects, can add up— and in today’s economy, many clients feel that it is better to know for certain what something is going to cost rather than erroneously anticipating—and hoping— that the project will stay within budget. Additionally, as time is money, finding and following the currently available opportunities can often equate to proving a track record of good stewardship of someone else’s money—and time—in order to get their business. According to Joe Jolley, a partner at Cornerstone General Contractors, “Commercial construction has always been expensive, but in today’s economy

controlling cost and the schedule is more important than ever.” When the difference between the estimated cost and the actual cost of a project can mean millions of dollars, companies are hoping for extra assurance that they won’t be left high and dry or—at the very worst—left with a project that cannot be finished.

Cornerstone General Contractors

According to Jolley, the trend in project delivery methods in Alaska in recent years has leaned toward design assist or the construction manager|general contractor (CM|GC) method, also known as the construction manager at risk (CM@Risk) method. “This approach is different from the outset because the relationship between the

www.akbizmag.com • Alaska Business Monthly • March 2013

Alaska Court System – Boney Courthouse Phase 2 Renovation is a current design|assist collaboration between Cornerstone General Contractors and Kumin Associates Inc. © Hook LLC, courtesy of Cornerstone General Contractors

owner, design team, and general contractor are unique,” Jolley says. “In CM|GC, both the lead designer (typically the architect) and the general contractor establish individual contracts with the owner. Structurally, this gives the owner greater control over the project by reducing the stereotypical ‘oppositional’ structure of a traditional method. In this way, both the design team and the builder are serving

the owner individually, yet expected and incentivized to cooperate to find creative solutions and innovations to reduce costs and the construction schedule.” Jolley describes how the CM|GC method brings the design team and general contractor together as team members in a cooperative two-step process: The first step is called pre-construction, and during this stage the general contractor

typically joins the design team when it is 35 percent complete, and then offers its expertise with how buildings go together and which materials, methods and phasing techniques can improve a project’s overall cost and schedule. “At the conclusion of pre-construction, the building design has been completed with all parties—including the builder—on the same page, “ Jolley

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Photo by Chris Parker, courtesy of K + A Design Studio

The Nikiski Fire Station No. 2 is a recent project by K+A Design Studio.

says. “The goal is to identify as many project considerations as possible prior to this point, so that once the second step or ‘construction’ begins, most potential challenges have been brought to light, addressed and planned for. “Ultimately, this collaborative process reduces risks for the owner, design team, and the general contractor. On ‘paper’ all parties know what needs to be done, where the challenges will be, and what the cost and the schedule will be— all before actually beginning the work.” In 2007, Cornerstone made the strategic decision to focus on design assist or CM|GC project delivery, and their current workload is made up entirely of this project delivery method. Completed projects include AVTEC Culinary Arts Building (2006) with NVision Architects, UAA ConocoPhillips Integrated Science Building (2009) with ECI Hyer Inc. Architects, and UAA Health Sciences Building (2011) with Livingston Slone Architects.

kpb architects

The team at kpb architects has a slightly different experience. “Where everybody’s going is the design|assist or design|build—those are really favorable delivery methods right now not only with the state but with private industry,” says Jeff Koonce, founder and principal at kpb architects. “The one that we’re working on a couple of projects right now is called a GC|CM, general contractor construction management.” 68

According to Koonce, a good portion of kpb’s work is design|build—but unlike many other firms, kpb prefers to work collaboratively and has done so for more than 30 years. Jolley from Cornerstone provides a clear understanding of the difference between the two methods: “With design|build, the general contractor is typically the contract holder serving the owner, and they retain the architect or design team. It structures the project team in a way that puts the design team in service of the builder and can reduce the amount of control the owner has on the design.” Based on the sentiments of Koonce and Prozeralik, it seems that one of the core benefits of design|build sits squarely in the realm of recognizing time as money, and the value of knowing how much something is going to cost rather than the owner hoping for the lowest price and crossing their fingers that everything will turn out as planned. “It doesn’t necessarily make the budget lower,” Koonce says, “but it does help to compress time and reduce risk. And those are key factors that are very attractive to the market.” As for other benefits, Koonce says that using the design|build project delivery method “also helps the general contractor and the owner get their heads around the project earlier on and it also helps the architecture and engineering team focus more on a real solution—or understand alternate solutions—earlier

www.akbizmag.com • Alaska Business Monthly • March 2013

“As far as the scope goes, they’re confirming the costs as you go. So when different things come up, they help with their construction costs input, on the means and methods, how to put something together, how you make cost savings to pay for other things and they come up with a guaranteed maximum price.”

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on with real-time feedback, so there’s opportunities to use that to our advantage for design opportunities, material selections and better solutions.” This, according to Koonce, prevents the owner from “going in a direction without true feedback from what’s the availability of materials in the industry and relative and comparative costs.” Prozeralik touts the benefits of the fiscal certainty. “We work things out so the cost is the cost,” he says. According to Prozeralik, when utilizing the design|build project delivery method, “In many cases, during the course of the design, since the contractor is sitting with us—along with the client—we’re working through the design issues. As far as the scope goes, they’re confirming the costs as you go. So when different things come up, they help with their construction costs input, on the means and methods, how to put something together, how you make cost savings to pay for other things and they come up with a guaranteed maximum price. So that the owner knows, ‘Okay, I’ve got the design, I’m not going out to the competitive bid world, where it’s not bottom line and the lowest bid.’ He controls the change orders.” “We work through the construction, and then when things come up, we work jointly together and there’s no change orders or other big issues—we work those things out so that the cost is the cost.” Koonce, however, is quick to add that there’s no right or wrong method for delivering a project—it is simply a matter of what the owner feels most comfortable with. “I think the way we deliver projects are very beneficial to the client and the

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www.akbizmag.com • Alaska Business Monthly • March 2013

Cornerstone General Contractors pour concrete at the Boney Courthouse Phase 2 Renovation, which includes substantial work to several floors of the facility. © Hook LLC, courtesy of Cornerstone General Contractors

team as a whole,” he says. “the good thing about this process we control costs and turn out some very nice work.” Recent kpb architects design|build projects include the Navy Seals training complex building in Kodiak, Goose Creek Correctional Center near Point Mackenzie, and the affectionately dubbed “909,” the new NANA Regional Corp. headquarters at 909 West Ninth Avenue in Anchorage.

K + A Design Studio

Although Bill Kluge, principal architect at K + A Design Studios in Kenai says that while he agrees that there is a growing trend towards design| build in the last few years, the majority of his work still utilizes the design| bid| build approach. “Owners tend to believe that they are getting more building for their dollar utilizing design build approach,” Kluge says. “One must be careful though that the savings aren’t realized due to contractor shopping prices resulting in inferior materials used throughout the project. “The most successful projects we have done recently are from completive bid approach,” Kluge adds. “The design is fully realized with products the owner has helped select and projects have been on or under budget.” He also indicates that costs can be mitigated by minding the season. “It would be good to encourage all owners to finalize design early in the year so the projects can bid in March rather than in the middle of construction sea70

son. It is very important to optimize a construction project around our relatively short warm seasons. This results in more competitive bids and a better value for owners.” Recent K + A projects include Nikiski Fire Station No. 2 and the Davis Block and Concrete Showroom.

Around the Next Corner

There is another project delivery method that is gaining popularity around the country, but has yet to make its mark on Alaska: Integrated Project Delivery, or IPD. “Integrated Project Delivery takes collaboration to the next level by employing a tri-party agreement (contract) between the owner, designer, and contractor,” Jolley says. “In contrast to design|assist, IPD contractually binds all three parties in a way that ties each of their individual successes to the success of the project—all before design has even started. Agreements vary, but they can include clauses regarding limits of liability, cost transparency, shared risks rewards as well jointly developed project objectives.” “At the American Institute of Architects national convention, I went to a seminar on IPD—and that is a fairly sophisticated collaborative effort between a savvy owner, a savvy contractor, and a savvy architect| engineer team who all have common goals and where they are willing to share in the benefits of turning over a project,” Koonce explains. “Let’s say we did a project together and we saved $100 thousand on it. Well those benefits and those sav-

ings would be shared through predetermined mathematical formula.” “I think that’s the only part of the integrated delivery method that we don’t do—it’s the sharing of the finances,” Prozeralik says. “We put in our fees, contractor puts in his costs, you know, the savings and whatever profits that we make are pretty much ours. We hit a lot of those cylinders, but we don’t hit all of them—but I don’t necessarily think that’s a good or bad thing. I think the way that we deliver projects with design assist or design build are very beneficial.” Despite its benefits and growing popularity in the industry, many architects will not touch IPD with a ten-foot pole. After all, two’s company, and anyone who has ever tried to divide an estate between three beneficiaries knows that three’s a crowd. However, Jolley looks forward to getting his feet wet in the IPD method. “While we have not yet seen an IPD in Alaska, we are looking forward to working on one with the right client. The nature of this type of project delivery is complementary to our company’s culture,” Jolley says. 

www.akbizmag.com • Alaska Business Monthly • March 2013

Mari Gallion is Associate Editor at Alaska Business Monthly.

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special section

Building Alaska

Photo by Jason Sellars, STG Incorporated

An STG crew prepares to set a 59,000 lb. wind turbine generator atop one of the 75-meter towers the company installed for Kotzebue Electric Association in 2012.

THE ImpORtANce OF CrANES IN

Operating in tough conditions, enjoying the work BY RINDI WHITE

perating a crane is precise work. The person at the controls wields a lot of power, swinging heavy items into place while a crew on the ground assists. A small mistake could mean costly property damage and even, in a small number of cases, lost lives. In Alaska, the job is even more complicated. Operators sometimes work where there are no roads and in weather few other crane operators see—blowing snow, bristling winds, below-zero temperatures and freezing sea spray. STG Incorporated, a construction services company operating in Alaska since 1991, knows a lot about operating in tough conditions. Owner Jim St. George says the company got its start repairing failing tank farms in Alaska 72

villages. Installing tanks and driving piles in villages around Alaska are still a large part of the company’s work, jobs that are assisted by a fleet of 23 cranes.

A Handful Out of Hundreds

St. George says the company began using cranes because it made STG more competitive. In 1996, STG opened an office in Anchorage and he purchased Alaska Crane in 2001, an Anchorage-based crane services company. As STG and Alaska Crane’s workload expanded he bought more cranes, sending some to western Alaska to assist in contracts there. “Alaska Crane is more of a traditional crane service company while STG’s utilization of cranes is more geared to the

completion of construction projects requiring their use,” St. George says. Today Alaska Crane is one of the largest crane services companies in the state. But St. George says there are plenty of other cranes at work here—hundreds, perhaps. From oil field services to ports and construction sites, cranes are picking loads all over Alaska. “No one does exactly what we do, but everyone does a part of what we do,” he says. “Some people do more port (work), some do more steel, some drive more piles. We do a mix and we focus pretty hard on construction.” St. George says he’s adept at operating cranes but his most recent acquisition, a Liebherr LR1600/2 crawler crane, is more crane than he’s comfortable op-

www.akbizmag.com • Alaska Business Monthly • March 2013

Photo courtesy of STG Incorporated

erating. It’s an enormous machine, currently the largest mobile crane operating in Alaska. According to information from the German manufacturer Liebherr, the boom is geared specifically for erecting wind turbines. It can lift 660 tons and operates with a very sophisticated network of computerized sensors. It’s a big machine, but perhaps safer than older styles of crane, St. George says. “Years ago, you operated the crane by the seat of your pants and felt what it was doing. If you picked too much, it would start to tip,” he says. “The newer cranes … are much more controllable and much safer. The evolution of cranes is really toward a safer machine.”

Powering Rural and Urban Alaska

These days, another part of his business has captured St. George’s interest—installing wind turbines for utility companies around the state. “Some of us (at STG) feel pretty strongly about renewable energy, that

it’s a good thing in the long term. We like to get involved in these projects, and we feel pretty good about the wind work we’ve done,” St. George says. The company has installed around 80 percent of the utility-scale wind projects currently in operation in Alaska, St. George says. Some of the communities they’ve worked in hold the distinction of having some of the highest energy prices in the nation. Wind power is helping reduce reliance on diesel and ultimately cutting energy costs for residents who pay nearly 50 percent of their household income on energy. “It’s made a really big impact out there (in rural Alaska) and we feel pretty good about that,” he says. STG was the contractor for Kotzebue Electric Association last year when it installed two direct-drive EWT turbines, each 75 meters tall, with a 900kw generating capacity. Kotzebue Electric Association project engineer Matt Bergan says the utility has 19 turbines operating today, 17 with smaller generating capacity and

Photo courtesy of STG Incorporated

Above: Utilizing the company’s Kobelco CK2500 II crawler crane, Alaska Crane prepares to set a pedestrian bridge at Ship Creek in 2009. Right: Alaska Crane supported construction activities related to the Anchorage Museum expansion in 2009. The company supplied a Kobelco CK1600 crane rigged with a 127-foot main boom 125 feet of luffing boom along with their P&H 790 tc, a truck-mounted crane, with 190 feet of boom and jib to support the project.

the two STG helped install last year. At peak wind times, about 75 percent of the utility’s power comes from wind. He says the utility hopes to expand its wind generating capacity and displace as much fuel as possible. That job was complicated by the remote nature of the work. Kotzebue only has one dock and Bergan says due to the size and weight of the pieces, they couldn’t be hauled through town. So STG and Northland Services landed a barge on a beach

www.akbizmag.com • Alaska Business Monthly • March 2013

near the wind turbine site and oﬄoaded a crane and the turbine parts there. The challenges didn’t stop when the parts were unloaded, says project manager Brennan Walsh. STG installed the bases for the turbines in 2011, then built an ice road in spring 2012 to move the large pieces over the tundra without doing permanent damage to the ground. “The Kotzebue project was unique in the fact that you’re dealing with some pretty sensitive geotechnical issues up there, with permafrost. It’s cold permafrost but if you have any disturbance to the ground, the results are noticeable.” The ice road was wide enough for the company to walk a 250-ton Kobelco CK2500 Series 2 hydraulic crane out to the site, along with the heavy turbine parts that had been oﬄoaded onto the beach. It was time to erect the turbines, even though winter was still gripping the region. “It was pretty exciting. It was single digits (outside) and everything was cold and hard. We had to make sure all of the equipment was warmed up well in advance of any of the picks,” Walsh says. “We really had to pay attention to the weather; wind can add significant loading to the crane. And once it gets that cold and you start putting heavy weights on stuff, your rigging STG raises a blade set for one of the 11 turbines installed on Fire Island last summer, using their Liebherr LR 1600/2 crawler crane. Photo by Oscar Edwin Avellaneda, courtesy of CIRI Inc.

Above: STG’s Liebherr LR 1600/2, a 660-ton capacity crawler crane, was assembled on Fire Island last summer. Photo by Riley Hyce, Carlile Transportation Systems

Left: Alaska Crane sets bridge components for Granite Construction with a 250-ton Kobelco crawler crane on a 2009 project outside Tok. Photo courtesy of STG Incorporated

and shackles can freeze up. If you get a pick and put it into place and then try to cut the load loose, sometimes your shackles freeze.” STG worked through the challenges, Bergan says, and did such a great job he hopes to work with them again in the future. “They have a broad wealth of experience in rural logistics, winter construction, just about everything. They seek out unique solutions to difficult problems,” he says. “We have a very high opinion of them after this project.”

The company also worked with CIRI this year to install the eleven GE turbines, each with a generating capacity of 1.6 megawatts, now generating electricity on Fire Island, just off Anchorage’s shore. St. George says the company was a subcontractor to Tetra Tech, which was the general contractor on the Fire Island wind project. The company used the Liebherr LR1600/2 crawler crane along with four others on that job. The company had been talking with CIRI officials for a number of years about the project, St. George says, and was excited to be part of the team that completed the work. “There’s some gratification in being able to see a project,” St. George says. “I can see Fire Island from my home.”

A Resource for Cold-Weather Crane Use

Many of the cranes Alaska Crane and STG use are Kobelco machines. According to information from the company, it’s the largest crawler crane manufacturer in the world and is a subsidiary of Kobe Steel, a large multinational corporation. St. George has had the opportunity to visit the Kobelco headquarters in Houston, Texas, and its manufacturing facility in Japan. “They make a tough, durable crane and have been good for us. They’ve given us an advantage with their versatility,” St. George says. Jack Fendrick, president of Kobelco Cranes North America says STG has also helped Kobelco improve its machines. www.akbizmag.com • Alaska Business Monthly • March 2013

Completed in 2009, STG installed approximately 350 piles for the foundation of Barrow’s new hospital. Photo courtesy of STG Incorporated

“A crane working 500 miles from the nearest road, in sub-zero degree weather that can only be accessed by barge or plane, is a unique (once in a lifetime) situation for most contractors. This is a normal day for STG,” Fendrick says by email. “When we started working with Jim St. George to provide cranes for his multiple projects in Alaska we had no idea what a valuable resource his organization would be for our engineering, logistics and design team. The unique environment and projects that STG works in or on has provided information that makes our products better,” he says. St. George says Kobelco has been a very responsive manufacturer. When he visited the factory, he says, the company was building a larger crane and he and others who were touring the facility at the time were able to have input in the process.

“We were able to be in on the ground floor and when you see it come out a year or two later, your ideas are reality,” he says. The largest area where STG has contributed, however, has been in cold weather operations. “We’ve said we need heaters here or there, or that their computers are a little temperature sensitive. They’ve modified or dealt with that so the cold doesn’t bother them as much,” St. George says. But for him, the personal relationships he developed with Kobelco and other companies are what make being in business worthwhile. “The fun of business is, if you enjoy who you’re working with, you get something out of that, too. There’s a personal side that’s really enjoyable,” he says.  Rindi White is a freelance journalist living in Palmer.

www.akbizmag.com • Alaska Business Monthly • March 2013

special section

Building Alaska

Rebuilding after disasters

ast September, high winds and flooding damaged buildings, roads and other infrastructure in Alaska from north of Talkeetna to Seward. Emergency responders at all levels took action. Gov. Sean Parnell declared a disaster and the feds followed suit. Alaska Railroad crews worked night and day to repair storm-damaged infrastructure and deal with disruptions to operations. The high winds caused numerous and sometimes lengthy power outages— electric company crews worked around the clock as well. 76

In the Matanuska-Susitna Borough alone damage stats include: four homes destroyed, 800 buildings damaged, 70 roads damaged during the flood with 40 impassable at one time, 141 homeowners applied for aid, and 21 families required temporary housing. Going south, the Kenai Peninsula Borough also was battered as were other areas of the state. Construction projects this year will include rebuilding after the disaster. The Small Business Administration is providing Alaskans with millions of dollars of low interest loans to recover.

www.akbizmag.com • Alaska Business Monthly • March 2013

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Photo by George Hays/Mat-Su Borough Photo by George Hays / Mat-Su Borough

Little Susitna River drainage forms a moat around a house in September 2012.

Oilwell Road washout shows Matanuska-Susitna Borough compromised infrastructure in September 2012 flooding.

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September 2012 raft rescue of homeowners from a flash flood outside of Wasilla on North Marilyn Circle.

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www.akbizmag.com • Alaska Business Monthly • March 2013

In September 2012, Alaska Railroad crews installed a culvert under the track at ARRC MP 261 (about 35 miles north of Talkeetna) to divert the floodformed water channel that caused the washout.

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In September 2012, a track washout about 20 miles north of Seward was repaired with newly-installed culverts.

September 2012 ﬂooding on the south end of the track caused several small washouts, including this one about 20 miles north of Seward.

www.akbizmag.com • Alaska Business Monthly • March 2013

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special section

Building Alaska

Bridge Builders Connecting Alaska with massive projects, regular maintenance BY GAIL WEST

ridges, both large and small, are an essential part of our transportation system across the nation. They’re particularly critical in a state such as Alaska where we have mindboggling rivers, both in size and will, and even greater bodies of water that separate our “here” from our “there.” Explorers and pioneers that we are, we always want to get “there” from “here.” Case in point: the Knik Arm bridge expected to transport vehicles and people from Anchorage to the Matanuska-Susitna Borough and points north. Conceived more than 50 years ago when Alaska Railroad engineers began looking for a shortened rail line between Anchorage and Fairbanks, the bridge idea has now morphed to include the Knik Arm Bridge and Toll Authority (KABATA) and an approximate $1 billion design and construction cost. “Costs have remained fairly stable at $715 to $730 million for a bridge plus 18 miles of roadway that would cost about $300 million,” says Shannon McCarthy, government and public affairs manager for KABATA.

Fourteen of a total of 80 steel girders await bridge construction near Salcha. Carlile Trucking is hauling these 165-foot-long girders to the site. Photo by John Binkley

Knik Arm Bridge

Funding for this massive project will come from private-sector investment, McCarthy adds. “KABATA is a public-private partnership,” McCarthy says. “The private sector will put together their funding from equity investors to private activity bonds. The private-sector partner will be repaid for building, operating and maintaining the bridge through user fees in the form of tolls once the bridge is built.”

Once finished, the Knik Arm bridge would link the Port of Anchorage area with Mat-Su’s Port MacKenzie area over a 1.74-mile bridge which, with approaches, makes the total crossing 2.71 miles long. The two ports are now separated by 90 miles of road. Also included in construction plans are 18 miles of road. According to KABATA, the new bridge would support the port’s freighthandling capacity and improve regional operations serving the airport and military. Although the Alaska Railroad

www.akbizmag.com • Alaska Business Monthly • March 2013

isn’t a part of KABATA’s current project plans, the authority says “the project would be complementary to future rail crossing and would not preclude rail approach and crossing options.” “We’re actually on the cusp of going into construction now,” McCarthy says. “This idea has been discussed for decades and at this point we have applied for all the key permits and we’re nearly complete on right-of-way acquisition. We’ve already started the request-forproposal process—we did that in 2011.

We asked for a statement of qualifications and selected three consortia to compete for the formal RFP. If the legislation we need passes (to establish a project reserve fund and clarify that the project is an infrastructure project backed by the state), we’ll be going out with our RFP in May of this year.” Last October, KABATA received qualifications from six development teams and qualified three to compete in the final RFP process. Those three (Alaska Infrastructure Access

www.akbizmag.com • Alaska Business Monthly • March 2013

Above: Piers 3 and 4 under plastic tents during construction to keep inside environment warm. Below: Pier 2, the first completed pier. Note: Pilings are driven to elevation 425, tops of piers are at elevation 605, a distance of 180 feet from the bottom of pile to top of pier. Ordinary high water of the river is at elevation 590, and with top of pier at 605 the bridge will be 15 feet above the water. Photos by John Binkley

Partners, Cook Inlet Passage Partners and North Star Mobility Group) each contain a combination of Alaska and Outside interests. Alaska businesses involved in the consortia include: Quality Asphalt Paving, R&M Consultants, DOWL HKM consulting group, Alaska Interstate Construction LLC and Denali Drilling. 84

“We had a great turnout from industry,” McCarthy says, “and we were very pleased. Now, if things go as scheduled, we anticipate making an award to one of these three groups before the end of this year. Then construction would begin in earnest in 2014 and, if all goes well, the bridge would open for business in 2018.”

McCarthy acknowledges that some of the biggest issues for bridge construction still lie ahead, but once an award is made to a bidder, that bid consortium will become a private-sector partner and much of the construction and operational risk shifts to that private partner. “This public-private partnership is unique in Alaska, but it has been proven

www.akbizmag.com • Alaska Business Monthly • March 2013

effective elsewhere in the United States,” McCarthy says. “It’s a good way to build without using a lot of public funds. If we’re successful, this model could be used for other—future—projects in Alaska.”

Tanana River Crossing

The largest bridge currently under construction is far north of Knik Arm on the Tanana River near Salcha. According to Mark Peterburs, project director for the Alaska Railroad, the 3,300-foot-long bridge is the first of a four-phase project to extend the rail line 80 miles from its current terminus near Eielson Air Force Base to a spot near Delta Junction. When finished, this bridge will be the longest bridge in Alaska, Peterburs says. Under the direction of primary contractor Kiewit Infrastructure West Co. of Anchorage, bridge and levee construction began in 2011 and girders began arriving at the site in November 2012. Each of the 165-foot-long steel girders weighs in at approximately 70 tons and Carlile Trucking is hauling 80 of them from Valdez on the only three trucks in Alaska that could handle them, according to Peterburs. The river itself is presenting some of the biggest challenges, Peterburs adds. In 2012, with about 25 percent of the levee built, the Tanana ice broke up in April and flooded the area. “We survived,” Peterburs says. “Luckily, nobody had any serious property damage and there was no serious problem to the project other than the delay. Now, we have completed six of the 19 piers and another seven under construction, so we’ll see how it all holds up this spring.” Phase 2 of the railroad’s Northern Rail Extension will make the connection of the new bridge to the current rail at Eielson. Peterburs says it’s about a 13-mile rail project. Phase 3 will extend the rail about 38 miles into the Donnelly Training Area, a military Arctic training and testing ground north of Delta Junction, and Phase 4 will extend the rail the final 30 miles into Delta Junction. “One of the features of this entire project,” Peterburs says, “is that it extends local rail access so the military can get to their training ground yearround instead of relying on an ice road during the winter.”

www.akbizmag.com • Alaska Business Monthly • March 2013

Photo courtesy of Knik Arm Bridge and Toll Authority

A 1.74-mile-long bridge is scheduled to connect Anchorage to the Matanuska-Susitna Borough across Knik Arm between the Port of Anchorage and Port MacKenzie, a distance of 90 miles with current road access.

Funding for the first phase of the Northern Rail Extension, the Tanana River crossing at Salcha, consists of a $105 million federal appropriation to the U.S. Army to ease access to its training areas on the west side of the Tanana River and $83 million from the State of Alaska. Funding for Phase 2 (Moose Creek to Salcha), Phase 3 (Salcha crossing to Donnelly), and Phase 4 (Donnelly to Delta Junction) is still unknown. “We hope to complete Phase 1 by August of 2014,” Peterburs adds. “So far, it’s gone well. The Railroad used the projectmanager-general-contractor method with Kiewit winning the proposal process. After a year of working together, we all agreed on a specific price. That takes all the ambiguity out of the design and construction. We’re half-way done now and there really haven’t been any unknowns.”

The bridge over Phelan Creek near Paxson carries runoff from the Gulkana River. It is scheduled to be rebuilt at an estimated cost of $2.5 to $5 million.

More Bridges

The State of Alaska also has bridge construction under way in both urban and rural locations, according to Rich Pratt, chief bridge engineer for the Alaska Department of Transportation and Public Facilities. “Most of them are pretty routine projects,” Pratt says, “replacing highway bridges that are worn out or have fulfilled their useful life. There are some new 86

Photos courtesy of State of Alaska DOT&PF

bridges, such as the one at Broad Pass in the Cantwell area on the Parks Highway—it’s a railroad grade separation.” After completing the design several years ago, Pratt adds, the project is almost ready to begin.

Other replacement projects include bridges between mileposts 75 and 90 on the Seward Highway. His section has been asked to get started on replacing eight bridges in that span of highway, Pratt says. Most of these bridges, he points out,

www.akbizmag.com • Alaska Business Monthly • March 2013

were built right after the 1964 earthquake. “The decks have basically worn out,” Pratt says. “They’re fairly narrow with narrow shoulders, they ride rough and they carry a lot of traffic.” The preliminary cost estimate for the first phase of this job is $20 million and Pratt says he believes those bridges should be under construction in 2014. Of the 62 current bridge projects under the state’s auspices, Pratt estimates most are for replacing or rehabilitating existing bridges. Other bridges scheduled for rehab include six to 10 bridges on the Parks Highway between Healy and the developed area near the entrance to Denali Park—between mileposts 239 and 263—three in the King Salmon-Naknek area and a new bridge over the Wood River near Aleknagik, which should be bid in April. In Anchorage there will be a new bridge across the railroad and Arctic Boulevard as part of the Dowling Road extension and another, wider bridge to be built across Campbell Creek as part of the Seward Highway widening. “There’s another bridge on the Copper River Highway in Cordova that needs replacing,” Pratt says. “The river has moved, scoured the soil away from the bridge foundation, so the highway had to be closed. There’s a big opening now between the end of the bridge and the existing road. We’re anticipating that project in 2015 and it’s going to be a challenging job for someone.” Coming up on DOT&PF’s calendar are a project to replace and rehab bridges on Goldstream Road in Fairbanks (advertised in February and estimated at $10 to $20 million) and Phelan Creek bridge on the Richardson Highway (advertised in March and estimated at $2.5 to $5 million). With bridges in the planning and construction stages across the state, Alaska’s infrastructure is growing and improving—moving people and goods from one place to another. Roads and bridges need continual vigilance, though, to keep current ones in operational order and new ones on the drawing boards to meet the needs of an expanding state population. 

tutka—helping build Alaska. With two locations and a staff of professional environmental scientists, engineers, geologists, chemists, biologists and technicians, we are readily available to perform projects across the State of Alaska.

• General Contractor/ Heavy Civil Construction • Environmental Cleanup and Consulting • Operations and Maintenance of Wastewater Pre-treatment Systems

All services are streamlined to ensure the highest level of regulatory compliance and cost controls.

(907) 357-2238 www.tutkallc.com SBA Certified HUBZone & EDWOSB/WOSB • State of Alaska Certified DBE

Gail West is a freelance author living in Anchorage.

www.akbizmag.com • Alaska Business Monthly • March 2013

special section

Building Alaska

All photos courtesy of CRSBG

CRSBG Tanana River Bridge Team at the fabrication facility.

Tanana River Bridge Steel Girder Q & A

was interested in learning about the steel girders China Railway Shanhaihguan Bridge Group Co. Ltd. manufactured for the Tanana River Crossing project in Alaska that is being built by Kiewit for the Alaska Railroad Corp., so I emailed the company. My questions and the responses from Mr. Guo Shuangcai, the project manager on the CRSBG Tanana River Bridge Team, are below. CRSBG is located in Qinhuangdai City, Hebei Province, People’s Republic of China. —Susan Harrington, Managing Editor 88

How long did it take to manufacture the 80 steel I-beam bridge girders?

From the time of contract signing through detailing, steel ordering and fabrication; approximately 10 months for all girders.

How long did it take to assemble the girders once manufactured? (And to take apart for shipment?)

After a trial run, each span took about 10 working days for assemble and disassemble.

www.akbizmag.com • Alaska Business Monthly • March 2013

I am told the girders are assembled during the manufacturing process with bolts, then taken apart for shipment and reassembled at the project site and this makes me curious about the nuts and bolts. Did CRSBG also manufacture the nuts and bolts to assemble the project?

CRSBG used domestic bolts for local assembly process, which where were the same size as project required bolts. Please note the bolts used for our assembly are NOT the same bolts used for final erection.

Q: A:

How many nuts and bolts did it take to assemble the girders? Top: Girders being loaded in China.

CRSBG used approximately 7,500 nut and bolt assemblies for each span. CRSBG assembled four spans at one time, thus about 30,000 total.

Middle: Inspecting a weld in the fabrication facility.

Since arriving in Alaska, these giant pieces of steel are being trucked, one at a time, 300 miles from the port at Valdez to the project site. In comparison, how far away is the port in China from the CRSBG facility? Were there any challenges or special considerations in transporting the beams to the barge from the factory?

Bottom: Four girders assembled in the plant. All photos courtesy of CRSBG

Approximately 15 miles. The main challenges were making sure the loads were transported per project specifications, and align with local laws on when (time of day) large loads of this nature could be delivered. As an example, the loads could only be delivered during the night when there is little public traffic, and the number of loads per day were also limited.

Q: A: Q: A:

When will the ﬁnal 24 beams be shipped?

The current project plan calls for a May 2013 delivery. What kind of tools are used in the fabrication process?

CRSBG used various types of equipment with the latest technology within the fabrication process which provided the highest of product quality. This included; CNC plasma/oxy fuel plate burn tables; CNC press brake: CNC bevel mill; semi and automatic weld machines;

CNC drilling machines; radial arm drills; for inspection, there were Radiographic Testing (RT), Ultrasonic Testing (UT), Magnetic Testing (MT); laser and optical survey measuring for assembly; overhead cranes with 50 and 100 ton capacity; custom made fixtures for tack welding, finish weld, and assembly; custom made truck supports for transportation; and custom made lifting devices.

How many people worked on the project?

CRSBG dedicated a specially trained staff in U.S. codes for this project. This included 14 AWS Certified Weld Inspectors; 80 AWS Certified Welders; 20 Fabrication Operators; 20 Detail Engineers; 10 Certified Crane Operators; 14 Project Team Members: 1 full-time Technical Advisor from the U.S.

Q: A:

Where did the steel come from (or the iron ore)?

USA, Europe and China.

www.akbizmag.com • Alaska Business Monthly • March 2013

 89

special section

Building Alaska

Knik Arm Crossing

Essential infrastructure for Alaska Artist rendering courtesy of Knik Arm Bridge and Toll Authority

BY MICHAEL L. FOSTER

An artist rendering of a two-lane Knik Arm Crossing and approach from the west side of Cook Inlet looking toward Anchorage.

laska’s infrastructure shapes our lives—from where we work to where we make our homes. Alaska’s infrastructure supports our communities—allowing industry and business to flourish, providing a means of commerce, and a way home. Former U.S. Sen. Christopher Dodd said: “America’s highways, roads, bridges, are an indispensable part of our lives. They link one end of our nation to the other. We use them each and every day, for every conceivable purpose.” Alaska’s population is growing, but our infrastructure is not keeping pace. According to the U.S. Census Bureau, we are among the five fastest growing states in the nation. And the Alaska Department of Labor expects the area of the strongest growth to be the Anchorage and Mat-Su Borough region. However; despite our rapid growth, and more on the way, Alaska ranks 45 in the United States for public road miles. The Knik Arm Crossing will be an indispensable part of our lives—it is essential infrastructure that Alaskans need and it is ready to build. Our design uses conventional construc90

tion methods—pipe pile substructure for the bridge piers utilizing a drilled shaft method. This type of foundation and technology is not new and, in fact, has been used in thousands of bridge projects locally, regionally and nationally. Additionally, site conditions were considered and investigated. Extensive borings were taken along the bridge alignment to ensure that soil conditions can support the pipe pile foundation and bridge superstructure given the area’s earthquakes, ice flows, tides and other aspects of the environment. But what really sets the Knik Arm Crossing apart from other large public works projects in Alaska is the fact that the project is being delivered as a public-private partnership under a performance-based contract. The winning proposer will finance, design, build, operate and maintain the bridge for 35 years. And as a result, cost and schedule overruns will be the responsibility of the private partner. The private partner will maintain and operate the bridge to high contract standards. If it does not,

our availability payments to them will be reduced. The Knik Arm Crossing will support Alaska’s people and economy by creating a more efficient link between Anchorage and points north, lowering freight costs. The Crossing will improve access to land for commercial, industrial and residential development. It will also create a second northern link to and from Anchorage that can be used in emergencies and as an evacuation route. Quite simply, the bridge will shape our lives and become indispensable infrastructure for generations of Alaskans. To paraphrase Dodd: The bridge will be used every day for every conceivable purpose. 

www.akbizmag.com • Alaska Business Monthly • March 2013

Michael L. Foster, Chairman of KABATA, has more than 30 years of engineering and construction experience in Alaska.

Building Alaska for more than 30 years. 2012 AGC of Alaska Excellence in Construction Award 2012 DBIA National Design-Build Award 2012 ENR Northwest Best Project Award

Goose Creek Correctional Center - Wasilla

**All Photos ÂŠ Ken Graham Photography.com

State of Alaska Scientific Crime Detection Laboratory - Anchorage

Norton Sound Regional Hospital - Nome w w w. n e e s e r i n c . c o m

2 5 0 1 B l u e b e r r y Ro a d , A n c h o r a g e , A l a s k a 9 9 5 0 3 P h o n e : ( 9 0 7 ) 2 7 6 - 1 0 5 8 F a x : ( 9 0 7 ) 2 7 6 - 8 5 3 3

ALASKA BUSINESS MONTHLY’S 2013 CONSTRUCTION DIRECTORY GENERAL CONTRACTORS Company Company

Top TopExecutive Executive

Alaska Dreams Inc. 2081 Van Horn Rd., #2 Fairbanks, AK 99701 Phone: 907-455-7712 Fax: 907-455-7713

Meini Huser, Pres./CEO

Alaska Elevator Sales & Service 1220 E. 68th Ave., Suite 104 Anchorage, AK 99518 Phone: 907-561-3100 Fax: 907-569-2515

Gerry Farnich, Pres.

Alaska Frontier Constructors Inc. PO Box 224889 Anchorage, AK 99522 Phone: 907-562-5303 Fax: 907-562-5309

John Ellsworth, Pres.

Alaska Interstate Construction LLC 301 W. Northern Lights Blvd., Suite 600 Anchorage, AK 99503 Phone: 907-562-2792 Fax: 907-562-4179

Steve Percy, Pres.

Alaska Mechanical Inc. 8540 Dimond D Cir. Anchorage, AK 99515-1938 Phone: 907-349-8502 Fax: 907-349-1324

Larry Buss, Pres.

Alaska Quality Builders PO Box 674 Willow, AK 99688 Phone: 907-495-6200 Fax: 907-495-6200

Karrol Johnson, Pres.

ASRC Energy Services Inc. 3900 C St., Suite 701 Anchorage, AK 99503 Phone: 907-339-6200 Fax: 907-339-6212

Jeff Kinneeveauk, Pres./CEO

BC Excavating, LLC 2251 Cinnabar Lp. Anchorage, AK 99507 Phone: 907-344-4492 Fax: N/A

Gordon Bartel, Pres.

Brice Environmental Services Corp. PO Box 73520 Fairbanks, AK 99707 Phone: 907-456-1955 Fax: 907-452-1067

Craig Jones, Pres./Gen. Mgr.

Bristol Construction Services LLC 111 W. 16th Ave., Third Floor Anchorage, AK 99501 Phone: 907-563-0013 Fax: 907-563-6713

David O'Donnell, Gen. Mgr., Civil

Bristol General Contractors, LLC 111 W. 16th Ave., Third Floor Anchorage, AK 99501 Phone: 907-563-0013 Fax: 907-563-6713

Scott Grigg, Ops. Mgr., Vertical

CCI Automated Technologies, Inc. 5660 B St. Anchorage, AK 99517 Phone: 907-561-3044 Fax: 907-561-4225

Hank Kiefert

CDF General Contractors Inc. PO Box 211586 Anchorage, AK 99521 Phone: 907-337-7600 Fax: 907-272-2209

Gary Murphy, Pres.

Chugach Alaska Corporation 3800 Centerpoint Dr., Suite 700 Anchorage, AK 99503-4396 Phone: 907-563-8866 Fax: 907-563-8402

Sheri Buretta, Chairman

CONAM Construction Co. 301 W. Northern Lights Blvd., Suite 300 Anchorage, AK 99503 Phone: 907-339-4000 Fax: 907-339-4001

Robert Stinson, Pres.

Cornerstone General Contractors Inc. 5050 Cordova St. Anchorage, AK 99503-7222 Phone: 907-561-1993 Fax: 907-561-7899

C. John Eng, Pres.

AK Estab. Empls. Empls. Estab.

Services Services

1994

Design, sales and construction for fabric covered steel buildings and pre-engineered metal buildings.

1998

We sell, install and service home elevators, some commercial elevators, stair-lifts, wheelchair-lifts, dumbwaiters, and conveyors throughout the state of Alaska.

2005

200

Construction

1987

300

AIC provides all forms of heavy civil and arctic construction including ice and snow roads, earthworks, gravel and ice islands, bridges and culverts, structural foundations, dock facilities, dredging and more.

1975

General contractor.

1994

510

New residential and commercial construction, additions, remodels, garages, shops, saunas, insurance losses, custom homes and don't forget landscaping. "We Build Dreams."

info@alaskadreamsinc.com www.alaskadreamsinc.com

alaskaelevator@gci.net

afcinfo@ak.net akfrontier.com

info@aicllc.com www.aicllc.com

www.amialaska.com

akqual@mtaonline.net www.alaskaqualitybuilders.com 1985

info@asrcenergy.com asrcenergy.com

5,000 AES offers expertise from the earliest regulatory stage to exploration, drilling support, engineering, fabrication, construction, project management, operations and maintenance and field abandonment.

1982

Complete hauling and excavation services environmental, water, sewer and storm utilities, site work and fabrication.

1991

Brice Environmental is an 8(a) Native owned small business specializing in remediation of heavy metal contaminated soils, remote site demolition, environmental construction and remediation. Project history throughout Alaska and the lower 48 states and Hawaii.

2003

Heavy and civil construction, site restoration/development, military range design build, operational range clearance, munitions response services and rail road construction.

2010

Heavy and civil construction services; new construction projects, reconstruction, rehabilitation and repairs, water resources, marine facilities and open space improvements; an 8(a) company.

1975

Designs, installs and services HVAC systems/controls and energy and facility management systems, including fire, security, CCTV and card access systems. Energy audits, metering and monitoring, building recommissioning and energy efficiency programs.

1983

Tenant improvements, commercial, residential, renovation and repair of damaged buildings, new construction, commercial, elevator installation and general contracting. Focused on Green building practices. Another service we offer is construction consulting.

1971

649

Government Services (Base Operations and Facilities Maintenance, Construction & Construction Management, Civil Engineering, Education, Environmental/Oil Spill Response and Information Technology); Commercial Services (Oil and Gas Services, Construction and Mechanical Contracting); and Investments.

1984

General construction contractor specializing in oil and gas facilities and pipelines, mining facilities, water and sewer facilities, other remote Arctic construction and maintenance.

1993

Construction of commercial and industrial buildings and structures.

admin@bcxllc.net www.bcxllc.net

craigj@briceenvironmental.com www.briceenvironmental.com

info@bristol-companies.com www.bristol-companies.com

Hankk@controlcontractors.com controlcontractors.com

cdfinc@alaska.net

bwelty@chugach-ak.com chugach-ak.com

www.conamco.com

jmathiesen@cornerstoneak.com www.cornerstoneak.com

www.akbizmag.com • Alaska Business Monthly • March 2013

Company Company

TopExecutive Executive Top

Criterion General Inc. 2820 Commercial Dr. Anchorage, AK 99501 Phone: 907-277-3200 Fax: 907-272-8544

Dave DeRoberts, Pres.

Davis Constructors & Engineers Inc. 740 Bonanza Ave. Anchorage, AK 99518 Phone: 907-562-2336 Fax: 907-561-3620

Josh Pepperd, Pres.

Door Systems of Alaska Inc. 18727 Old Glenn Hwy. Chugiak, AK 99567 Phone: 907-688-3367 Fax: 907-688-3378

Beth Bergh, Owner

Frawner Corp. 1600 A St., Suite 302 Anchorage, AK 99501 Phone: 907-561-4044 Fax: 907-346-4797

Jay Frawner, Pres.

GeoTek Alaska, Inc. PO Box 11-1155 Anchorage, AK 99511-1155 Phone: 907-569-5900 Fax: 907-929-5762

Christopher Nettels, Pres.

Global Diving & Salvage Inc. 5304 Eielson St. Anchorage, AK 99518 Phone: 907-563-9060 Fax: 907-563-9061

Devon Grennan, Pres.

Golden Heart Construction PO Box 72728 Fairbanks, AK 99707-2728 Phone: 907-458-9193 Fax: 907-458-9173

Craig Robinson, Pres.

Granite Construction Company 11471 Lang St. Anchorage, AK 99515 Phone: 907-344-2593 Fax: 907-344-1562

Derek Betts, Region Mgr.

AK AK Estab. Estab. Empls. Empls.

Services Services

1992

Commercial building construction.

1976

190

Commercial construction and design-build. Top current projects: JBER Military Housing privatization, Providence Generations, UAF Life Sciences Teaching & Research Facility, UAF Engineering, Camp Denali Readiness Center addition and Covenant House Alaska replacement.

2000

Commercial and industrial doors, rolling doors, grilles, shutter. Fire-rated rolling door and accordion fire-rated side folding partitions. Flat wall partitions. Dock equipment. Hangar doors. Blast-resistant doors.

2002

General contractor including building construction, remodel, HVAC systems, sewer, water, storm systems and horizontal directional drilling.

2002

We specialize in the acquisition of subsurface data for both the environmental and geotechnical professional communities. If your needs involve the characterization of the subsurface for either environmental assessments or geotechnical data acquisition, we provide drilling and geophysical services.

1979

We specializes in portable mixed gas & saturation diving with capabilities to 1,000 feet & is able to provide a variety of underwater maintenance, repair, installations & inspections. Full project management services & engineering support for undertakings that require technical underwater services.

1982

Commercial and residential remodel and new construction.

1922

300

Public and private heavy civil construction, design-build, construction aggregates, recycled base, warm and hot mix asphalt, road construction, bridges, piling, mine infrastructure and reclamation, and sitework.

traciel@criteriongeneral.com www.criteriongeneral.com

admin@davisconstructors.com davisconstructors.com

beth@doorsystemsak.com www.doorsystemsak.com

frawner@frawnercorp.com frawnercorp.com

ksmith@geotekalaska.com www.geotekalaska.com

info@gdiving.com www.gdiving.com

craig@goldenheartconstruction.net

alaska.projects@gcinc.com graniteconstruction.com

www.akbizmag.com • Alaska Business Monthly • March 2013

ALASKA BUSINESS MONTHLY’S 2013 CONSTRUCTION DIRECTORY

GENERAL CONTRACTORS

ALASKA BUSINESS MONTHLY’S 2013 CONSTRUCTION DIRECTORY GENERAL CONTRACTORS Company Company

Top TopExecutive Executive

Jay-Brant General Contractors 460 Grubstake Ave. Homer, AK 99603 Phone: 907-235-8400 Fax: 907-235-8731

Robert Brant, Principal

K & W Interiors 9300 Old Seward Hwy. Anchorage, AK 99515 Phone: 907-344-3080 Fax: 907-349-5373

Dale Kaercher, Pres.

K-C Corp. 2964 Commercial Dr. Anchorage, AK 99501 Phone: 907-258-2425 Fax: 907-278-8018

Byron Kohfield, Pres.

Kautaq Construction Services 9191 E. Frontage Rd., Suite 102 Palmer, AK 99645 Phone: 907-762-0104 Fax: 907-707-1477

Thomas Antonovich, GM

Ken Brady Construction 4001 Turnagain Blvd. E. Anchorage, AK 99517 Phone: 907-243-4604 Fax: 907-248-3920

Tim Brady, Pres.

Kiewit Building Group Inc. 2000 W. Int'l Airport Rd., Suite C-6 Anchorage, AK 99502 Phone: 907-222-9350 Fax: 907-222-9380

Kevin Welker, Sr. VP/ AK Area Mgr.

Kiewit Infrastructure West Co. 2000 W. International Airport Rd. #C6 Anchorage, AK 99502 Phone: 907-222-9350 Fax: 907-222-9380

Pat Harrison, Pacific NW Area Mgr.

Knik Construction Co. Inc. 6441 S. Airpark Pl. Anchorage, AK 99502-1809 Phone: 907-245-1865 Fax: 907-245-1744

Steve Jansen, Pres.

Kuk Construction 3201 C St., Suite 700 Anchorage, AK 99503 Phone: 907-562-8708 Fax: 907-562-8751

Brooke Adkinson, GM

Little Susitna Construction Co. 821 N. St., Suite 207 Anchorage, AK 99501 Phone: 907-274-7571 Fax: 907-277-3300

Tammie Smith, Gen. Mgr.

Loken Construction, LLC 4011 Arctic Blvd. Suite 105 Anchorage, AK 99503 Phone: 907-868-8880 Fax: 907-563-8881

Tyler Loken, Pres.

Marsh Creek LLC 2000 E. 88th Ave. Anchorage, AK 99507 Phone: 907-258-0050 Fax: 907-279-5710

Mick McKay, CEO

NANA Construction LLC 1800 W. 48th Ave., Suite G Anchorage, AK 99517 Phone: 907-265-3600 Fax: 907-265-3699

Ralph McKee, Pres.

Neeser Construction Inc. 2501 Blueberry Rd. Anchorage, AK 99503 Phone: 907-276-1058 Fax: 907-276-8533

Jerry Neeser, Pres.

NORCON Inc. 949 E. 36th Ave., Suite 143 Anchorage, AK 99508 Phone: 907-349-0821 Fax: 907-275-6300

Tom Arnold, Pres.

North Country Builders of Alaska 440 S. Denali St. Wasilla, AK 99654 Phone: 907-373-7060 Fax: 907-373-7061

Thomas Smith, Pres.

AK Estab. Empls. Empls. Estab.

Services Services

1983

Public works, military and commercial construction.

1985

K&W Interiors is a family owned business serving Alaska for over 25 years. We are a full service company with Alaska's largest showroom for all types of flooring and cabinetry. We are a licensed, bonded, and insured general contractor and we do the it all from design to install.

1986

General contracting commercial/industrial. Specializing in light gage metal framing, sheetrock, taping, painting and specialty coatings.

2012

KCS specializes in diverse construction projects ranging from large commercial buildings to small home remodels throughout the Western United States.

1954

General contractor.

2005

850

Commercial and industrial building projects throughout North America. State/federal/ local government, higher education, healthcare and hospitality. Continuous Alaska operational presence since 1949.

1947

200

Heavy civil construction including transportation, marine, dams and resource development.

1973

Knik Construction is a general heavy construction company specializing in remote-site projects. Knik's experience includes heavy construction, road building, asphalt paving, foamed asphalt treated bases, airport construction and reconstruction, excavation, crushing and transportation.

1999

Provides pre-construction, construction and construction management services for government and commercial clients. KUK personnel have extensive experience with Job Order and Task Order contracts and a broad range of international experience.

cjay@jaybrant.com jaybrant.com

knwinteriors@alaska.net www.k-winteriors.com

bkohfield@kccorporation.com

Thom.Antonovich@kautaq.com

www.kenbrady.com

www.kiewit.com/building

damian.skerbeck@kiewit.com www.kiewit.com/northwest

information@lynden.com www.lynden.com/knik/

kukinfo@olgoonik.com www.kukconstruction.com 1980

littlesu@ak.net littlesu.com

1,020 General, mechanical and electrical contractor. Architects, civil, mechanical and electrical engineers, licensed in 11 states. Construction project management. Importer, exporter and global project consultation.

2003

Commercial and residential framing, steel siding, and boom truck services.

2004

100

Energy systems, environmental, construction, telecommunications.

2008

210

Full service oilfield construction, fabrication, operations and maintenance capabilities. Truckable modules, blast resistant walls and modules, remote worker' camps, offices and office complexes, Envirovacs, Tool Cribs, pipe and steel fabrication, field construction, project and construction mgmt.

1974

274

General contracting firm.

1974

415

Full service general contractor specializing in multi-craft services to the oil and gas industry and inside/outside electrical and communication services to the power generation/distribution and communication industries.

1998

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

info@lokenconstructionak.com www.lokenconstructionak.com

gina.heath@marshcreekllc.com marshcreekllc.com

sagen.juliussen@nana.com www.nanaconstruction.com

jerry_neeser@neeserinc.com neeserinc.com

Inquiries@NORCON.com www.norcon.com

tsmith@northcountrybuilders.com www.northcountrybuilders.com

www.akbizmag.com • Alaska Business Monthly • March 2013

ALASKA BUSINESS MONTHLY’S 2013 CONSTRUCTION DIRECTORY GENERAL CONTRACTORS Company Company

Top TopExecutive Executive

North Pacific Erectors PO Box 240748 Douglas, AK 99824 Phone: 907-364-3288 Fax: 907-364-3464

Jim Williams, Pres.

Northern Dame Construction PO Box 871131 Wasilla, AK 99687 Phone: 907-376-9607 Fax: 907-373-4704

Doris Coy, Owner

Northland Wood Products 1510 E. 68th Ave. Anchorage, AK 99507 Phone: 907-452-4000 Fax: 907-452-1391

James Enochs, Anchorage Mgr.

Osborne Construction Co. PO Box 97010 Kirkland, WA 98083 Phone: 425-827-4221 Fax: 425-828-4314

George Osborne Jr., Pres.

Osborne Construction Co. 3701 Braddock St. Fairbanks, AK 99701 Phone: 907-451-0079 Fax: 907-451-1146

George Osborne, Pres.

Pacific Pile & Marine 602B E. Whitney Rd. Anchorage, AK 99501 Phone: 907-276-3873 Fax: 907-278-0306

Wil Clark, Managing Partner

Paug-Vik Development Corp. PO Box 429 Naknek, AK 99633 Phone: 907-258-1345 Fax: 907-222-5423

Maurice Labrecque, Gen. Mgr.

PCL Construction Services Inc. 1400 W. Benson Blvd., Suite 510 Anchorage, AK 99503 Phone: 907-243-7252 Fax: 907-272-1905

H. Scott Ivany, Construction Mgr.

Price Gregory International 301 W. Northern Lights Blvd., Suite 300 Anchorage, AK 99503 Phone: 907-278-4400 Fax: 907-278-3255

David Matthews, VP, AK Area Mgr.

Ridge Contracting Inc. PO Box 240121 Anchorage, AK 99524 Phone: 907-222-7518 Fax: 907-272-2290

Drew V. McLaughlin, Pres.

Roger Hickel Contracting Inc. 11001 Calaska Cir. Anchorage, AK 99515 Phone: 907-279-1400 Fax: 907-279-1405

Mike Shaw, Pres.

Siemens Industry Inc. 5333 Fairbanks St., Unit B Anchorage, AK 99518 Phone: 907-563-2242 Fax: 907-563-6139

Leverette Hoover, Gen. Mgr. AK

SIKU Construction 6700 Arctic Spur Rd. Anchorage, AK 99518 Phone: 907-762-0100 Fax: N/A

Michael Campbell, Gen. Mgr.

Spinell Homes Inc. 1900 W. Northern Lights Blvd., Suite 200 Anchorage, AK 99517 Phone: 907-344-5678 Fax: 907-344-1976

Charles Spinelli, Pres.

STG Incorporated 11710 S. Gambell St. Anchorage, AK 99515 Phone: 907-644-4664 Fax: 907-644-4666

James St. George, Pres.

Toghotthele Corporation PO Box 249 Nenana, AK 99760 Phone: 907-832-5832 Fax: 907-832-5834

Jim Sackett, CEO/Pres.

AK Estab. Empls. Empls. Estab.

Services Services

1978

General contractor specializing in metal building erection. All aspects of construction from site prep to remodels. Locally owned since 1978.

1992

Traffic control services.

1965

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

1987

273

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

1987

235

General contractor with primary focus on design/build, commercial, housing, civil and utilities, industrial and military projects for state and federal agencies. Selective work in private market. Offices located in Anchorage, Fairbanks and Kirkland, WA.

2008

Pacific Pile & Marine specializes in marine construction, pile driving, dredging, and heavy civil structures. Pacific is dedicated to safety and quality. In addition to performing hard bid public works Pacific excels at meeting the unique needs of our private and design build clients.

1996

General contracting and environmental services.

1906

The PCL family of companies has a century-long tradition of excellence, hard work and a can-do attitude. They are construction leaders in buildings, civil infrastructure and heavy industrial markets.

1974

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

2000

450

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

1995

General contractor; commercial and road work.

1982

Energy Services Company (ESCO)/Total Building Integrator: to include Building Automation/Energy Management control systems, fire alarm, HVAC mechanical systems, security (card access, CCTV, intrusion, etc.), audio and video solutions and mass notification systems.

2005

SIKU's diverse portfolio encompasses government and private sector projects. Its strength involves managing complex projects from data centers to government training facilities. SIKU is also a certified SBA 8(a) company.

1987

General contractor - residential and light commercial construction.

1991

Renewable energy systems, tower construction, power generation and distribution facilities, pile foundations and bulk-fuel systems.

1973

Village Corporation - Project management, land development, fabrication services, oil field support services, road building, excavation/dirt work services, equipment rental, seed potatoes, and timber sales.

jim@northpacificerectors.com www.northpacificerectors.com

doris@northerndame.com

northlandwood@acsalaska.net northlandwood.com

occ@osborne.cc osborne.cc

occ@osborne.cc www.osborne.cc

jasond@pacificpile.com www.pacificpile.com

info@pdcnaknek.com pdcnaknek.com

alyork@pcl.com pcl.com

dmatthews@pricegregory.com www.pricegregory.com

drew@ridgecontracting.org www.ridgecontracting.org

contact@rhcak.com www.rogerhickelcontracting.com

leverette.hoover@siemens.com siemens.com

michael.campbell@ukpik.com

spinell@spinellhomes.com www.spinellhomes.com

info@stgincorporated.com stgincorporated.com

toghotthele@hotmail.com www.toghotthele.com

www.akbizmag.com • Alaska Business Monthly • March 2013

Company Company

TopExecutive Executive Top

Tutka LLC (Anchorage) 620 E. Whitney Rd., Suite B Anchorage, AK 99501 Phone: 907-272-8010 Fax: 907-272-9005

Keith Guyer, Ops Mgr.

Tutka LLC (Fairbanks) 3002 Industrial Ave., #1 Fairbanks, AK 99701 Phone: 907-452-7100 Fax: 907-452-7102

Mick Neary, Project Mgr.

Tutka LLC (Wasilla) 5825 E. Mayflower Ct., Suite B Wasilla, AK 99654 Phone: 907-357-2238 Fax: 907-357-2215

Amie Sommer, Member

UIC Construction LLC 6700 Arctic Spur Rd. Anchorage, AK 99518 Phone: 907-762-0114 Fax: 907-762-0131

Chris Phillips, Gen. Mgr.

UNIT COMPANY 620 E. Whitney Rd. Anchorage, AK 99501 Phone: 907-349-6666 Fax: 907-522-3464

Michael J. Fall, Pres.

Watterson Construction Co. 6500 Interstate Cir. Anchorage, AK 99518 Phone: 907-563-7441 Fax: 907-563-7222

Bill Watterson, Pres.

Weldin Construction LLC 561 E. Steel Lp. Palmer, AK 99645 Phone: 907-746-3200 Fax: 907-746-3237

Terry Edwards, Pres.

AK AK Estab. Estab. Empls. Empls.

Services Services

1999

WBE/DBE (DOT & PF, MOA), EDWOSB, HUBZone, CCR/ORCA registered. General Contractor, heavy civil construction, environmental cleanup and consulting, wastewater pre-treatment systems operations and maintenance services.

1999

WBE/DBE (AK DOT&PF, MOA), EDWOSB, HUBZone,CCR/ORCA registered. General Contractor, heavy civil construction, environmental cleanup and consulting, oil water separator and grease traps maintenance services.

1999

Certified DBE/WBE (ADOT&PF, MOA),EDWOSB/WOSB, HUBZone, CCR/ORCA registered. General contractor, heavy civil construction, environmental cleanup and consulting, wastewater pre-treatment systems operations and maintenance services.

keith@tutkallc.com www.tutkallc.com

mick@tutkallc.com www.tutkallc.com

amie@tutkallc.com www.tutkallc.com 1978

cphillips@ukpik.com www.ukpik.com

75,100 Commercial building and civil general contractor focusing primarily on Arctic construction through hard-dollar bid, design/build turn-key, and construction management. Services include pre-construction and planning, cost estimating, remote logistics, scheduling, and best-value engineering.

1977

Commercial general contractor.

1981

100

General building contractor. Projects include 2 helicopter hangars at Ft. Wainwright; COF at Ft. Richardson; Alaska Oncology tenant improvements; UAA Science Bldg renovation Phase 3; ANTHC tenant improvements; Doyon Utilities- Ft Wainwright.

1983

100

Commercial and military construction throughout the state of Alaska and the Pacific Rim.

info@unitcompany.com unitcompany.com

info@wattersonsconstruction.com wattersonconstruction.com

jenniew@weldin.com weldin.com

Where the road ends…

Our Work Begins

Our crews have decades of experience, and the skilled manpower to take on any task. With our tundra-approved vehicles, we can get your drill rig and project materials to any remote location, and build ice pads and ice roads. And our range of logistics support – hauling fuel and freight – has been broadened with the addition of our new marine services division.

cruzconstruct.com

Main Office (907) 746-3144 North Slope (907) 659-2866

From start to finish, we are a partner who can deliver what you need.

Anywhere you need it. Any season of the year.

tundra transport • rig moves • rig support • remote camps • ice roads • ice pads • well site trailer units • marine services

www.akbizmag.com • Alaska Business Monthly • March 2013

ALASKA BUSINESS MONTHLY’S 2013 CONSTRUCTION DIRECTORY

GENERAL CONTRACTORS

ALASKA BUSINESS MONTHLY’S 2013 CONSTRUCTION DIRECTORY ELECTRICAL CONTRACTORS Top Executive Company Company

Top Executive

Bright Electric 1410 Richardson Hwy. North Pole, AK 99705 Phone: 907-479-3321 Fax: 907-488-5033

Paul Koop, Owner/Pres.

City Electric Inc. 819 Orca St. Anchorage, AK 99501 Phone: 907-272-4531 Fax: 907-264-6491

Gabriel Marian, Pres.

Fullford Electric Inc. 303 E. Van Horn Rd. Fairbanks, AK 99701 Phone: 907-456-7356 Fax: 907-456-7288

Lael Fullford, Pres.

Little Susitna Construction Co. 821 N. St., Suite 207 Anchorage, AK 99501 Phone: 907-274-7571 Fax: 907-277-3300

Tammie Smith, Gen. Mgr.

NANA Construction LLC 1800 W. 48th Ave., Suite G Anchorage, AK 99517 Phone: 907-265-3600 Fax: 907-265-3699

Ralph McKee, Pres.

NORCON Inc. 949 E. 36th Ave., Suite 143 Anchorage, AK 99508 Phone: 907-349-0821 Fax: 907-275-6300

Tom Arnold, Pres.

Power & Light Inc. 7721 Schoon St., # 1 Anchorage, AK 99518 Phone: 907-522-5678 Fax: 907-349-5678

Todd Houston, Pres.

Redi Electric, LLC 6151 A St. Anchorage, AK 99518 Phone: 907-561-2323 Fax: 907-261-3299

Larry Rhymer, President

STG Incorporated 11710 S. Gambell St. Anchorage, AK 99515 Phone: 907-644-4664 Fax: 907-644-4666

James St. George, Pres.

The Superior Group Inc. PO Box 230387 Anchorage, AK 99523 Phone: 907-344-5011 Fax: 907-344-5094

Mark Erickson, Corporate GM/Pres.

AK Estab. Empls. AK Estab. Empls.

Services Services

1992

Full-service electrical provider.

1946

125

Electrical and communications contracting NAICS; 237130, 238210.

1975

FEI is a full service electrical and communications contractor.

bsi@alaska.net

gabrielm@cityelectricinc.com www.cityelectricinc.com

lael@fullfordelectric.com 1980

littlesu@ak.net littlesu.com

2008

210

1974

415

2004

Commercial, residential and industrial electrical installations. Automation, audio, video, CCTV security systems, fire detection and controls.

1975

A full service electrical contractor and a proven leader in AlaskaÕs electrical industry. Redi Electric is a 35-year member of NECA, the National Electrical Association and a 35-year member of the International Brotherhood of Electrical Workers (IBEW). http://hotwireelectric.com/redi_elec-home.html

1991

Renewable energy systems, tower construction, power generation and distribution facilities, pile foundations and bulk-fuel systems.

1964

125

Full service mechanical, electrical, design support and maintenance contractor.

sagen.juliussen@nana.com www.nanaconstruction.com

Inquiries@NORCON.com www.norcon.com

toddhouston@alaska.net www.Powerandlight.Biz

gporter@redielectric.com

info@stgincorporated.com stgincorporated.com

tmentzer@corp-tsgi.com www.superiorpnh.com

MECHANICAL CONTRACTORS Company Company

TopExecutive Executive Top

Air Temp Alaska 5406 Lake Otis Pkwy. Anchorage, AK 99507 Phone: 907-349-4503 Fax: 907-344-1230

Dana Bertolini, Pres.

CCI Automated Technologies, Inc. 5660 B St. Anchorage, AK 99517 Phone: 907-561-3044 Fax: 907-561-4225

Hank Kiefert

Circle Plumbing & Heating Inc 2317 Raspberry Rd. Anchorage, AK 99502 Phone: 907-243-2171 Fax: 907-248-6135

Ken Embley, Pres.

Diamond Heating Inc. 5406 Lake Otis Pkwy. Anchorage, AK 99507 Phone: 907-561-3490 Fax: 907-561-6290

Jerry Ralston, Pres.

Eayrs Plumbing & Heating 1208 Lake Shore Dr. Homer, AK 99603 Phone: 907-235-2333 Fax: 907-235-3866

Steve Eayrs, Owner

AK AK Estab. Estab. Empls. Empls.

Services Services

1991

Service, repair and maintenance of commercial and residential heating and air conditioning systems; airflow, ventilation, controls and trouble-shooting.

1975

1971

Commercial and residential plumbing and heating repairs and new construction.

1996

Commercial and residential heating and air conditioning. Remodels, tenant improvements, rooftop unit replacements, residential retrofits. All HVAC installation work.

1990

Boiler systems, radiant heat, renewable energy components, including solar, HRV systems, complete plumbing needs, commercial and residential, new construction and remodel.

dana@airtempalaska.com www.airtempalaska.com

Hankk@controlcontractors.com controlcontractors.com

circle@circleak.com www.circleplumbingandheating.com

www.diamondheatingalaska.com

www.eayrsplumbingandheating.com

www.akbizmag.com • Alaska Business Monthly • March 2013

Company Company

Top Executive Top Executive

Frawner Corp. 1600 A St., Suite 302 Anchorage, AK 99501 Phone: 907-561-4044 Fax: 907-346-4797

Jay Frawner, Pres.

Klebs Heating & Air 1107 E. 72nd Ave. Anchorage, AK 99518 Phone: 907-365-2500 Fax: 907-365-2540

Gary Klebs, Pres./CEO

Little Susitna Construction Co. 821 N. St., Suite 207 Anchorage, AK 99501 Phone: 907-274-7571 Fax: 907-277-3300

Tammie Smith, Gen. Mgr.

MacDonald Miller Alaska Inc. 3105 Lakeshore Dr., Suite B-103 Anchorage, AK 99507 Phone: 907-266-4444 Fax: 907-266-4445

Gordon V. Timmerman, Pres.

Nenana Heating Services Inc. PO Box 9 Nenana , AK 99760 Phone: 800-478-5447 Fax: 907-832-5491

Services Services

2002

General contractor including building construction, remodel, HVAC systems, sewer, water, storm systems and horizontal directional drilling.

1986

Commercial and residential HVAC and plumbing. Design build; full mechanical.

frawner@frawnercorp.com frawnercorp.com

facebook.com/klebsheating klebsheating.com 1980

littlesu@ak.net littlesu.com

1988

Staefa control, HAVC, sheet metal and control design.

1972

Offering a range of heating services, including home delivery service of oil and gasoline. Our service area includes Cantwell, Denali Park, Healy, Anderson and Nenana, and Kantishna.

1974

415

1998

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

1974

Alaska Native owned 8(a) certified general contractor, specializing in industrial mechanical work.

ncooley@macmiller.biz

nenanaheatingservices.com

NORCON Inc. 949 E. 36th Ave., Suite 143 Anchorage, AK 99508 Phone: 907-349-0821 Fax: 907-275-6300

Tom Arnold, Pres.

North Country Builders of Alaska 440 S. Denali St. Wasilla, AK 99654 Phone: 907-373-7060 Fax: 907-373-7061

Thomas Smith, Pres.

Rockford Corp. 6700 Arctic Spur Rd. Anchorage, AK 99518 Phone: 907-344-4551 Fax: 907-344-2130

Steve Schoeni, Gen. Mgr.

AK AK Estab. Estab. Empls. Empls.

Inquiries@NORCON.com www.norcon.com

tsmith@northcountrybuilders.com www.northcountrybuilders.com

info@rockfordak.com rockfordak.com

www.akbizmag.com • Alaska Business Monthly • March 2013

ALASKA BUSINESS MONTHLY’S 2013 CONSTRUCTION DIRECTORY

MECHANICAL CONTRACTORS

ALASKA BUSINESS MONTHLY’S 2013 CONSTRUCTION DIRECTORY MECHANICAL CONTRACTORS Company Company

Top TopExecutive Executive

Schmolck Mechanical Contractors Inc. 110 Jarvis St. Sitka, AK 99835 Phone: 907-747-3142 Fax: 907-747-6897

Gary R Smith, Pres.

Siemens Industry Inc. 5333 Fairbanks St., Unit B Anchorage, AK 99518 Phone: 907-563-2242 Fax: 907-563-6139

Leverette Hoover, Gen. Mgr. AK

Superior Plumbing & Heating 8861 Elim St. Anchorage, AK 99507 Phone: 907-349-6550 Fax: 907-349-3022

Mark Erickson, Gen. Mgr.

Talkeetna Mechanical HVAC-R HC 89 Box 8451 Talkeetna, AK 99676 Phone: 907-733-4850 Fax: 907-733-4851

Mark C. Smith, CEO

The Superior Group Inc. PO Box 230387 Anchorage, AK 99523 Phone: 907-344-5011 Fax: 907-344-5094

Mark Erickson, Corporate GM/Pres.

AK Estab. Empls. Empls. Estab.

Services Services

1927

Mechanical contracting - HVAC, piping and plumbing.

1982

1964

Plumbing contractors.

1994

Mechanical and heating contractors.

1964

125

gary@schmolckmechanical.com www.schmolckmechanical.com

leverette.hoover@siemens.com siemens.com

tmentzer@superiorpnh.com superiorpnh.com

talkeetnamechanical@yahoo.com Full service mechanical, electrical, design support and maintenance contractor.

tmentzer@corp-tsgi.com www.superiorpnh.com

SPECIALTY CONTRACTORS Company Company

TopExecutive Executive Top

Alaska Countertops Inc. 122 W. 92nd Ave. Anchorage, AK 99515 Phone: 907-561-9299 Fax: 907-561-9298

John Anderson, Pres.

Alaska Dreams Inc. 2081 Van Horn Rd., #2 Fairbanks, AK 99701 Phone: 907-455-7712 Fax: 907-455-7713

Meini Huser, Pres./CEO

Alaska Elevator Sales & Service 1220 E. 68th Ave., Suite 104 Anchorage, AK 99518 Phone: 907-561-3100 Fax: 907-569-2515

Gerry Farnich, Pres.

Alaska Glazing Inc 12100 Industry Way, Suite P7 Anchorage, AK 99515 Phone: 907-770-0260 Fax: 907-770-0261

Michael Merrill

Alaska Premier Closets LLC 507 E. Ship Creek Ave. Anchorage, AK 99501 Phone: 907-278-2288 Fax: 907-278-2330

Luis Suarez, Owner/Partner

Arctic Refrigeration & A/C 500 W. Potter Dr. Anchorage, AK 99518 Phone: 907-562-8856 Fax: 907-562-8857

Bobby Gordon, Pres./Owner

Aurora Glass 1025 Orca St., #N5 Anchorage, AK 99501 Phone: 907-277-1058 Fax: 907-274-2509

Anthony D. DeLucia, Owner

BC Excavating, LLC 2251 Cinnabar Lp. Anchorage, AK 99507 Phone: 907-344-4492 Fax: N/A

Gordon Bartel, Pres.

Cabinet Fever Inc. 4551 Fairbanks St., #C Anchorage, AK 99503 Phone: 907-349-4871 Fax: 907-349-4891

Kurt Vincent Echols, Pres.

Capitol Glass/Northerm Windows 2300 E. 63rd Ave. Anchorage, AK 99507 Phone: 907-272-4433 Fax: 907-272-3747

Walt Murphy, Gen. Mgr.

100

AK AK Estab. Estab. Empls. Empls. 1996

Furnish only or fabrication and installation of laminate, solid surface, quartz, and granite countertops, sills, tub/shower surrounds, fire place hearth/mantle.

1994

Design, sales and construction for fabric covered steel buildings and pre-engineered metal buildings.

1998

We sell, install and service home elevators, some commercial elevators, stair-lifts, wheelchair-lifts, dumbwaiters, and conveyors throughout the state of Alaska.

2004

Commercial storefronts and entrances, curtain walls, automatic doors, composite aluminum wall panels, translucent wall panels.

2003

As space transformation specialists we provide residential and commercial custom storage solutions ranging from closets to wine rooms to garages. We specialize in retail displays, medical and business offices. We also sell Swisstrax modular flooring system useful in unlimited applications.

1991

Sales, service and installation of commercial refrigeration equipment. Refrigeration contractor.

1991

Specializing in custom shower enclosures and mirrors; glass replacement and window replacement.

1982

Complete hauling and excavation services environmental, water, sewer and storm utilities, site work and fabrication.

1999

Commercial & residential custom cabinet shop producing high-end custom kitchen cabinets, counter tops & installation as well as custom furniture, entertainment centers, reception desks, medical, dental & retail casework, store fixtures. Also carry two lines of manufactured residential cabinets.

1951

Manufacturer of high quality vinyl windows, insulated glass units. Commercial aluminum, Skylites, shower doors. All types of glass replacement. Sliding patio doors, garden terrace door systems. Loewen window dealer.

info@alaskacountertops.com www.alaskacountertops.com

info@alaskadreamsinc.com www.alaskadreamsinc.com

alaskaelevator@gci.net

alaskaglazinginc.com

apekich@alaska.net www.akclosets.com

arcticrefrigeration@gci.net www.arcticrefrigeration.biz

auroraglass@acsalaska.net auroraglassak.com

admin@bcxllc.net www.bcxllc.net

kurt@cabinetfever.net www.cabinetfever.net

www.cgnw.com

Services Services

www.akbizmag.com • Alaska Business Monthly • March 2013

Company Company

TopExecutive Executive Top

Chinook Fire Protection 12651 Old Seward Hwy. Anchorage, AK 99515 Phone: 907-344-3473 Fax: 907-344-3411

Jeffrey Wilcheck, Pres.

City Electric Inc. 819 Orca St. Anchorage, AK 99501 Phone: 907-272-4531 Fax: 907-264-6491

Gabriel Marian, Pres.

Diamond Heating Inc. 5406 Lake Otis Pkwy. Anchorage, AK 99507 Phone: 907-561-3490 Fax: 907-561-6290

Jerry Ralston, Pres.

Door Systems of Alaska Inc. 18727 Old Glenn Hwy. Chugiak, AK 99567 Phone: 907-688-3367 Fax: 907-688-3378

Beth Bergh, Owner

Doors/Windows 43961 Kalifornsky Beach Rd., # C Soldotna, AK 99669 Phone: 907-262-9151 Fax: 907-262-6433

John Straume, Pres.

Frawner Corp. 1600 A St., Suite 302 Anchorage, AK 99501 Phone: 907-561-4044 Fax: 907-346-4797

Jay Frawner, Pres.

GeoTek Alaska, Inc. PO Box 11-1155 Anchorage, AK 99511-1155 Phone: 907-569-5900 Fax: 907-929-5762

Christopher Nettels, Pres.

Granite Construction Company 11471 Lang St. Anchorage, AK 99515 Phone: 907-344-2593 Fax: 907-344-1562

Derek Betts, Region Mgr.

AK AK Estab. Estab. Empls. Empls.

Services Services

2004

Automatic fire sprinkler systems; new installation and service of wet, dry, pre-action, and foam water based fire sprinkler systems.

1946

125

Electrical and communications contracting NAICS; 237130, 238210.

1996

Commercial and residential heating and air conditioning. Remodels, tenant improvements, rooftop unit replacements, residential retrofits. All HVAC installation work.

2000

1979

Commercial storefront, commercial overhead doors, Kawneer and commercial hardware.

2002

General contractor including building construction, remodel, HVAC systems, sewer, water, storm systems and horizontal directional drilling.

2002

1922

300

dave@chinookfire.com www.chinookfireprotection.com

gabrielm@cityelectricinc.com www.cityelectricinc.com

www.diamondheatingalaska.com

beth@doorsystemsak.com www.doorsystemsak.com

johns@doorswindows.biz

frawner@frawnercorp.com frawnercorp.com

ksmith@geotekalaska.com www.geotekalaska.com

alaska.projects@gcinc.com graniteconstruction.com

Today’s investments set the cornerstone for tomorrow’s success. Our commitment to Alaska remains as strong as ever. With significant investments in our vessels and equipment and extensive knowledge of logistics and Alaska trade, Horizon Lines remains the best choice for dependable and efficient shipping to the land of the midnight sun.

Horizon Lines vessel arriving in Tacoma May 2012 with new reefers and flats for Alaska

www.akbizmag.com • Alaska Business Monthly • March 2013

101

ALASKA BUSINESS MONTHLY’S 2013 CONSTRUCTION DIRECTORY

SPECIALTY CONTRACTORS

ALASKA BUSINESS MONTHLY’S 2013 CONSTRUCTION DIRECTORY SPECIALTY CONTRACTORS Company Company

Top TopExecutive Executive

ICRC - a subsidiary of VSE Corporation 421 W. First Ave., Suite 200 Anchorage, AK 99501 Phone: 907-561-4272 Fax: 907-561-4271

Carl Williams, CEO/Pres.

K & W Interiors 9300 Old Seward Hwy. Anchorage, AK 99515 Phone: 907-344-3080 Fax: 907-349-5373

Dale Kaercher, Pres.

K's Construction Inc. 2301 S. Knik Goose Bay Rd., Suite 4 Wasilla, AK 99654 Phone: 907-357-8453 Fax: 907-373-5471

Carrie Kay, Owner

Kuk Construction 3201 C St., Suite 700 Anchorage, AK 99503 Phone: 907-562-8708 Fax: 907-562-8751

Brooke Adkinson, GM

Little Susitna Construction Co. 821 N. St., Suite 207 Anchorage, AK 99501 Phone: 907-274-7571 Fax: 907-277-3300

Tammie Smith, Gen. Mgr.

Mac Cheyne's Carpets Plus Inc. 2060 Peger Rd. Fairbanks, AK 99709 Phone: 907-479-9193 Fax: 907-455-9193

John Mac Cheyne, Pres.

Monrean Engineering & Associates PO Box 9343 Ketchikan, AK 99901-4343 Phone: 907-247-5920 Fax: 907-247-5918

Fred D. Monrean, PE

NANA Construction LLC 1800 W. 48th Ave., Suite G Anchorage, AK 99517 Phone: 907-265-3600 Fax: 907-265-3699

Ralph McKee, Pres.

NortHeat Hearth & Home 2020 E. Dowling Rd., #4 Anchorage, AK 99507 Phone: 907-562-2249 Fax: 907-561-8348

Michael Jefferies, Pres.

Northern Dame Construction PO Box 871131 Wasilla, AK 99687 Phone: 907-376-9607 Fax: 907-373-4704

Doris Coy, Owner

Olgoonik Specialty Contractors LLC 3201 C St., Suite 700 Anchorage, AK 99503 Phone: 907-562-8712 Fax: 907-562-8751

Marty Miksch, Pres.

Prestige Stone & Tile 11221 Olive Ln. Anchorage, AK 99515 Phone: 907-929-2523 Fax: 907-349-0164

Michael James Russo Jr., Pres.

Rain Proof Roofing 2201 E. 84th Ct. Anchorage, AK 99507 Phone: 907-344-5545 Fax: 907-349-3386

Pat Reilly, Pres.

Ridge Contracting Inc. PO Box 240121 Anchorage, AK 99524 Phone: 907-222-7518 Fax: 907-272-2290

Drew V. McLaughlin, Pres.

Rino's Tile & Stone 2310 Azurite Ct. Anchorage, AK 99507 Phone: 907-743-1075 Fax: 907-743-1076

Ryan Sjostrom, Member

Statewide Door & Glass 221 E. Ship Creek Ave. Anchorage, AK 99501 Phone: 907-562-2074 Fax: 907-562-1803

Mike Hammer, Pres.

102

AK Estab. Empls. Empls. Estab.

Services Services

1983

Project management, project controls, quality inspections, SWPP plans, permitting, civil and environmental engineering, construction administration.

1985

1982

General contractors specializing in installation of ceramic, quarry, and porcelain tile; stone, slate and granite.

1999

info@ICRCsolutions.com www.ICRCsolutions.com

knwinteriors@alaska.net www.k-winteriors.com

ksconst@ak.net

kukinfo@olgoonik.com www.kukconstruction.com 1980

littlesu@ak.net littlesu.com

Commercial and residential flooring.

1997

Civil engineering, surveying, wastewater design, subdivisions, structural engineering, storm drainage design, foundation engineering, inspections, engineering reports, marine structures, permitting, etc.

2008

210

1977

Sale, installation and service of stoves, inserts and fireplaces (wood, gas, pellet, coal, oil and electric). Chimney design, sales, installation and service. Parts, supplies and accessories. Wholesale and retail.

1992

Traffic control services.

2006

Provides pre-construction, construction and construction management services for government and commercial clients. OSC has proven success with SABER, Job Order and Task Order Contracts, and is a U.S. General Services Administration MATOC contractor.

2005

Granite, marble, limestone, travertine and quartz countertops.

1962

We specialize in residential as well as commercial roofing and waterproofing, we have a full service sheet metal shop for all your metal needs. Re-roofs, new construction, shingles, shakes, metal, built-up roofing as well as single-ply. Located in Anchorage and Wasilla, we service the entire state.

2000

450

2003

Custom fabrication of granite, marble, travertine and quartz surfaces for your home or business.

1992

Commercial aluminum curtain-wall, storefront, and glass contracting. Architectural glass doors, handrails, skylights and door hardware. Installation and maintenance of automatic sliding/swinging door systems. Design, sales, and service for card reader access systems. Architectural panels.

Macsplus.Net

fmonrean@kpunet.net

sagen.juliussen@nana.com www.nanaconstruction.com

northeat@gmail.com northeat.com

doris@northerndame.com

mmiksch@olgoonik.com www.olgoonik.com

prestigestone@alaska.net www.prestigestonetile.com

info@rainproofroofing.com www.rainproofroofing.com

drew@ridgecontracting.org www.ridgecontracting.org

rinosak@yahoo.com www.rinostileandstone.com

mike.statewide@alaska.net www.Statewidedoors.com

www.akbizmag.com • Alaska Business Monthly • March 2013

Company Company

TopExecutive Executive Top

Steelfab 2132 Railroad Ave. Anchorage, AK 99501 Phone: 907-276-4303 Fax: 907-276-3448

Richard Faulkner, Pres.

STG Incorporated 11710 S. Gambell St. Anchorage, AK 99515 Phone: 907-644-4664 Fax: 907-644-4666

James St. George, Pres.

Talkeetna Mechanical HVAC-R HC 89 Box 8451 Talkeetna, AK 99676 Phone: 907-733-4850 Fax: 907-733-4851

Mark C. Smith, CEO

TecPro Ltd. 816 E. Whitney Rd. Anchorage, AK 99501 Phone: 907-348-1800 Fax: 855-348-1830

Cynthia Saunders, Pres.

The Superior Group Inc. PO Box 230387 Anchorage, AK 99523 Phone: 907-344-5011 Fax: 907-344-5094

Mark Erickson, Corporate GM/Pres.

Toghotthele Corporation PO Box 249 Nenana, AK 99760 Phone: 907-832-5832 Fax: 907-832-5834

Jim Sackett, CEO/Pres.

Washington Crane & Hoist 1200 E. 76th Ave., Suite 1202 Anchorage, AK 99518 Phone: 907-336-6661 Fax: 907-336-6667

Mike Currie, VP

Wilbur Brothers Sheet Metal 1241 Noble St. Fairbanks, AK 99701 Phone: 907-452-3838 Fax: 907-452-3321

A. Roy Wilbur, Owner

AK AK Estab. Estab. Empls. Empls.

Services Services

1988

Alaska Steel Source.

1991

Renewable energy systems, tower construction, power generation and distribution facilities, pile foundations and bulk-fuel systems.

1994

Mechanical and heating contractors.

1997

TecPro offers electrical contracting services, UL Listed industrial control system integration, and security integration services (video, access, alarm). Specialties include SCADA and PLC design, fabrication, installation and programming.

1964

125

Full service mechanical, electrical, design support and maintenance contractor.

1973

1975

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

1915

Custom fabrication, heat shields, flashing, and drip pans.

steelfabak.com

info@stgincorporated.com stgincorporated.com

talkeetnamechanical@yahoo.com

info@tecpro.com TecPro.com

tmentzer@corp-tsgi.com www.superiorpnh.com

toghotthele@hotmail.com www.toghotthele.com

www.washingtoncrane.com

Cornerstone General Contractors, Inc. 5050 Cordova Street, Anchorage, AK 99503 P (907) 561-1993 F (907) 561-7899 Photo © Hook, LLC

www.akbizmag.com • Alaska Business Monthly • March 2013

103

ALASKA BUSINESS MONTHLY’S 2013 CONSTRUCTION DIRECTORY

SPECIALTY CONTRACTORS

ALASKA BUSINESS MONTHLY’S 2013 CONSTRUCTION DIRECTORY

HEAVY EQUIPMENT DEALERS Company Company

Top Executive Top Executive

Brice Equipment LLC (Volvo Rents) 1725 Badger Rd. North Pole, AK 99705 Phone: 907-488-6422 Fax: 907-488-6423

Barry Lindquist, Gen. Mgr.

Construction Machinery Industrial 5400 Homer Dr. Anchorage, AK 99518 Phone: 907-563-3822 Fax: 907-563-1381

Ken Gerondale, Pres./CEO

Craig Taylor Equipment 733 E. Whitney Rd. Anchorage, AK 99501 Phone: 907-276-5050 Fax: 907-276-0889

Lonnie G Parker, Pres.

Equipment Direct Inc. 10421 VFW Rd., Suite 205B Eagle River, AK 99577 Phone: 907-696-7375 Fax: 907-622-5195

L. Butera

Independent Lift Truck of Alaska 1200 E. 70th Ave. Anchorage, AK 99518 Phone: 907-344-3383 Fax: 907-344-8366

Wayne Dick, Pres.

Miller Construction Equipment 2207 N. Jordan Ave. Juneau, AK 99801 Phone: 907-789-4255 Fax: 907-789-5150

Andrew Miller, Gen. Mgr.

Motion Industries, Inc. 611 E. Int'l Airport Rd. Anchorage, AK 99518 Phone: 907-563-5565 Fax: 907-563-5536

Chris Ransom, Anch. Branch Mgr.

Motion Industries, Inc. 1895 Van Horn Rd., Unit A Fairbanks, AK 99701 Phone: 907-452-4488 Fax: 907-456-8840

Brad Deweese, Fbx. Branch Mgr.

AK AK Estab. Estab. Empls. Empls.

Services Services

2006

Equipment Rental: snowblower (loader mounted), loaders, skid steers, articulated trucks, generators (6.6 - 800 kw), compressors, light plants, logsplitters, excavators, trailers, service trucks and heaters.

1985

102

CMI sells, rents and services heavy equipment.

1954

Factory authorized dealer for: Komatsu construction and mining, Bobcat loaders and excavators, John Deere commercial and lawn tractors, Dynapac compaction rollers, Fecom land clearing attachments and carriers. Providing sales, parts and service.

1985

Construction equipment sales. Murooka all-terrain dump carriers.

1982

Dealers for CAT, Mitsubishi, Manitou, Maximal and Bendi Forklifts. GEHL Construction Equipment, Skid Steer Loaders, Telehandlers and Mini Excavators. Skytrack Manlifts, Scissor Lifts and Zoom Booms. Suppliers of New and Used construction equipment, parts, sales and service all makes.

2004

Alaska Exclusive dealer for Doosan excavators, loaders, wheel excavators, log loaders, and articulated dump trucks. Also represent Yanmar mini equipment, Sakai compaction equipment, and Chicago Pneumatic full line of products.

2007

A leading distributor of industrial maintenance, repair and operation (MRO) replacement parts (over 4.8 million parts), including bearings, power transmission, hydraulic/ pneumatic components, linear, hydraulic/industrial hose, industrial and safety supplies, seals, process pumps, material handling.

1970

A leading distributor of industrial maintenance, repair and operations (MRO) replacement parts (over 4.8 million parts), including bearings, power transmission, hydraulic/pneumatic components, linear, hydraulic/industrial hose, industrial and safety supplies, process pumps, seals, material handling.

barryl@briceinc.com www.briceinc.com/brice-equipment

o.prestwick@cmiak.com cmiak.com

anc.sales@craigtaylorequipment.com craigtaylorequipment.com

sales@eqdirect.com eqdirect.com

barry.ilt@gci.net iltalaska.com

andy@mcesalaska.com www.mcesalaska.com

www.motionindustries.com

SPAN ALASKA

gives us the power to do more.

..... We needed a shipping partner that moves as fast and efficiently as we do. So we partnered with Span Alaska. Today our products are flying out the door, business is buzzing, and we’re enjoying the ride! – Jason Schweizer, Logistics Division Manager, Yamaha Motor Corporation

SHIPPING TO ALASKA? CALL. 1.800.257.7726 www.spanalaska.com

promises made, promises delivered

Josh Estes, General Manager, Performance Yamaha, Wasilla

104

www.akbizmag.com • Alaska Business Monthly • March 2013

Company Company

TopExecutive Executive Top

N C Machinery Co. 6450 Arctic Blvd. Anchorage, AK 99518 Phone: 907-786-7500 Fax: 907-786-7580

John J. Harnish, Pres./CEO

Tog Rentals LLC PO Box 249 Nenana, AK 99760 Phone: 907-832-5832 Fax: 907-832-5834

Jim Sackett, CEO/Pres.

Toghotthele Corporation PO Box 249 Nenana, AK 99760 Phone: 907-832-5832 Fax: 907-832-5834

Jim Sackett, CEO/Pres.

TrailerCraft | Freightliner of Alaska 1301 E. 64th Ave. Anchorage, AK 99518-1908 Phone: 907-563-3238 Fax: 907-562-6963

Lee McKenzie, Pres./Owner

Washington Crane & Hoist 1200 E. 76th Ave., Suite 1202 Anchorage, AK 99518 Phone: 907-336-6661 Fax: 907-336-6667

Mike Currie, VP

West-Mark Fairbanks Service Center 3050 Van Horn Rd. Fairbanks, AK 99709 Phone: 907-451-8265 Fax: 907-451-8273

Grant Smith, CEO

Yukon Equipment Inc. 2020 E. Third Ave. Anchorage, AK 99501 Phone: 907-277-1541 Fax: 907-258-0169

Roy Rank, Pres.

AK AK Estab. Estab. Empls. Empls.

Services Services

1926

230

2010

Equipment leasing and rentals.

1973

1969

Parts, sales and service for trucks, tractors, trailers and transport equipment.

1975

2009

Liquid transportation; tank repair.

1945

Sales, service, parts, rental and lease equipment, including Case, Trail King, Elgin, Vactor, Oshkosh, Etnyre, Monroe, Trackless, Bomag, Thawzall, Snow Dragon. Fairbanks location: 3511 International St.; phone: 907-457-1541; fax: 907-457-1540. Yukon became part of the Calista Corporation in 2010.

sfield@ncmachinery.com ncmachinery.com

Caterpillar machine sales, parts, service, and rental. Caterpillar engines for marine, power generation, truck, petroleum, and industrial applications. Sales and rental of Caterpillar and other preferred brands of rental equipment and construction supplies.

toghotthele@hotmail.com

toghotthele@hotmail.com www.toghotthele.com

sales@trailercraft.com www.trailercraft.com

www.washingtoncrane.com

wwalker@west-mark.com www.west-mark.com

info@yukoneq.com www.yukoneq.com

www.akbizmag.com • Alaska Business Monthly • March 2013

105

ALASKA BUSINESS MONTHLY’S 2013 CONSTRUCTION DIRECTORY

HEAVY EQUIPMENT DEALERS

ALASKA BUSINESS MONTHLY’S 2013 CONSTRUCTION DIRECTORY COMMERCIAL INDUSTRIAL SUPPLIERS Company Company

Top TopExecutive Executive

Alaska Dreams Inc. 2081 Van Horn Rd., #2 Fairbanks, AK 99701 Phone: 907-455-7712 Fax: 907-455-7713

Meini Huser, Pres./CEO

Alaska Industrial Hardware Inc. 2192 Viking Dr. Anchorage, AK 99501 Phone: 907-276-7201 Fax: 907-258-3054

Mike Kangas, Pres./Gen. Mgr.

Alaska Rubber Group 5811 Old Seward Hwy. Anchorage, AK 99518-1479 Phone: 907-562-2200 Fax: 907-561-7600

Janeece Higgins, Pres.

Alaska Steel Co. 1200 W. Dowling Rd. Anchorage, AK 99518 Phone: 907-561-1188 Fax: 907-561-2935

Maynard Gates , Pres./CEO

Alaska Valve & Fitting Co. PO Box 230127 Anchorage, AK 99523 Phone: 907-563-5630 Fax: 907-563-4721

Jim Trolinger, Pres.

Alcan Forest Products LP 430 Dock St. Ketchikan, AK 99901 Phone: 907-225-1710 Fax: 907-225-1709

Eric Nichols, Pres.

Anchorage True Value Hardware 9001 Jewel Lake Rd., # 5 Anchorage, AK 99502 Phone: 907-248-9211 Fax: 907-248-6976

Tim Craig

Arctic Controls Inc. 1120 E. 5th Ave. Anchorage, AK 99501 Phone: 907-277-7555 Fax: 907-277-9295

Scott Stewart, Pres.

Arctic Fox Steel Buildings 751 S. Reeve Circle Wasilla, AK 99654 Phone: 907-376-5443 Fax: 907-357-7663

Chuck Morris, Owner

ATCO Structures & Logistics Ltd. 425 G St. Anchorage, AK 99501 Phone: 907-677-6983 Fax: 907-677-6984

Harry Wilmot, Pres./COO

Bering Shai Rock & Gravel PO Box 196 Unalaska, AK 99685 Phone: 907-581-1409 Fax: 907-581-3409

Diane Shaishnikoff, Owner/Office Mgr.

Cabinet Fever Inc. 4551 Fairbanks St., #C Anchorage, AK 99503 Phone: 907-349-4871 Fax: 907-349-4891

Kurt Echols, Pres.

Canadian Mat Systems (Alaska) Inc. 831 Gambell St. Anchorage , AK 99501 Phone: 907-272-5766

Wadeen Hepworth , Dir. CMSI/AK Dir.

Capitol Glass/Northerm Windows 2300 E. 63rd Ave. Anchorage, AK 99507 Phone: 907-272-4433 Fax: 907-272-3747

Walt Murphy, Gen. Mgr.

Crescent Electric Supply Co 1179 Van Horn Rd. Fairbanks, AK 99701 Phone: 907-452-4544 Fax: 907-456-6146

Craig Thompson

Dibble Creek Rock 34481 North Fork Rd. Anchor Point, AK 99556 Phone: 907-235-7126 Fax: 907-235-0682

Cap Shafer, VP

106

AK Estab. Empls. Empls. Estab.

Services Services

1994

Design, sales and construction for fabric covered steel buildings and pre-engineered metal buildings.

1959

182

Retail, tools, hardware and construction supplies.

1981

Industrial and hydraulic hose and fittings, pumps, kamloks, belting, Enerpac and Landa. Hydraulic sales and repair. Certified wire rope and nylon slings with InfoChip Tracking technology. Anchorage, Fairbanks and Wasilla locations.

1982

Full line steel and aluminum distributor with a rebar fabrication division on site.

1965

Instrumentation and fluid control, Swagelok Distributor of Alaska.

2002

Timber procurement and sales.

1949

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

1985

Arctic Controls Inc. is Alaska's leading expert in valves, flow meters, actuators, instrumentation, and process controls for commercial oil, gas, and water management. Providing professional expertise for all commercial applications and can assist you with estimates and recommendations.

1985

Supply and erect pre-engineered steel buildings.

1947

ATCO Structures & Logistics offers complete infrastructure solutions to customers worldwide, including remote work force housing, portable offices and trailers, innovative modular facilities, construction, site support services, operations support, catering and noise reduction technologies.

2004

Native owned and operated business specializing in the production and placement of high-quality rock materials, as well as providing heavy equipment rentals and services for any type of small or large construction project, including airports, boat harbors and road building projects.

1999

Internationally advanced rig mat and wastewater treatment solutions. Conventional and composite Rig Matting and Interlocking Matting; temporary and permanent high capacity Composite Bridges; environmentally friendly, temporary and permanent waste water treatment and recycling.

1951

1919

Electrical supplies.

1984

We own a portable crushing plant and crush material in the bush. At our home plant on the Kenai Peninsula in Anchor Point besides crushing gravel we also operate a wash plant and produce washed gravel products and also own a batch plant and furnish ready mix.

info@alaskadreamsinc.com www.alaskadreamsinc.com

info@aih.com aih.com

info@alaskarubber.com www.alaskarubber.com

receptionist@alaskasteel.com www.alaskasteel.com

AVF@alaska.net http://www.swagelok.com/Nwus.aspx

alcantimber@kpunet.net transpacfibre.com

anchoragehardware@truevalue.net www.truevalue.Com

customerservice@arcticcouriers.com www.arcticcontrols.com

arcfox@mtaonline.net www.arcticfoxsteelbuildings.com

atco@atcosl.com www.atcosl.com

Dianeshai@hotmail.com www.beringshairock.com

kurt@cabinetfever.net www.cabinetfever.net

hepworthagency@gci.net www.hepworthagency.com

www.cgnw.com

Cesco.Com

cheryl@dibblecreekrock.com dibblecreekrock.com

www.akbizmag.com • Alaska Business Monthly • March 2013

Company Company

TopExecutive Executive Top

Door Systems of Alaska Inc. 18727 Old Glenn Hwy. Chugiak, AK 99567 Phone: 907-688-3367 Fax: 907-688-3378

Beth Bergh, Owner

Doors/Windows 43961 Kalifornsky Beach Rd., # C Soldotna, AK 99669 Phone: 907-262-9151 Fax: 907-262-6433

John Straume, Pres.

Glass Sash & Door Supply 500 E. Ship Creek Ave. Anchorage, AK 99501 Phone: 907-276-1655 Fax: 907-276-6712

Tom Dooley AHC/CDC, VP

Hayden Electric Motors Inc. 4191 Old Seward Hwy. Anchorage, AK 99503 Phone: 907-561-1073 Fax: 907-561-5867

Roger Saunders, VP/Gen. Mgr.

Hi-Tec Professional Paint 2375 E. 63rd Ave. Anchorage, AK 99507 Phone: 907-562-6567 Fax: 907-563-9601

Michael Mc Govney, SEC-TREAS

Independent Lift Truck of Alaska 1200 E. 70th Ave. Anchorage, AK 99518 Phone: 907-344-3383 Fax: 907-344-8366

Wayne Dick, Pres.

Mac Cheyne's Carpets Plus Inc. 2060 Peger Rd. Fairbanks, AK 99709 Phone: 907-479-9193 Fax: 907-455-9193

John Mac Cheyne, Pres.

Miller Construction Equipment 2207 N. Jordan Ave. Juneau, AK 99801 Phone: 907-789-4255 Fax: 907-789-5150

Andrew Miller, Gen. Mgr.

AK AK Estab. Estab. Empls. Empls.

Services Services

2000

1979

Commercial storefront, commercial overhead doors, Kawneer and commercial hardware.

1952

Builders hardware, commercial wood and steel doors and frames, toilet partitions and accessories.

1959

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

1989

Supply automotive, aircraft and industrial paint and all the related supplies.

1982

Commercial and residential flooring.

2004

beth@doorsystemsak.com www.doorsystemsak.com

johns@doorswindows.biz

info@glasssashanddoor.com www.glasssashanddoor.com

ask@hayden-ak.com www.hayden-ak.Com

mmcgovney@alaska.net www.hitecautopaint.com

barry.ilt@gci.net iltalaska.com

Macsplus.Net

andy@mcesalaska.com www.mcesalaska.com

Building Alaska and the Arctic for 34 years.

www.akbizmag.com • Alaska Business Monthly • March 2013

107

ALASKA BUSINESS MONTHLY’S 2013 CONSTRUCTION DIRECTORY

COMMERCIAL INDUSTRIAL SUPPLIERS

ALASKA BUSINESS MONTHLY’S 2013 CONSTRUCTION DIRECTORY

COMMERCIAL INDUSTRIAL SUPPLIERS Company Company

Top Executive Top Executive

Motion Industries, Inc. 1895 Van Horn Rd., Unit A Fairbanks, AK 99701 Phone: 907-452-4488 Fax: 907-456-8840

Brad Deweese, Fbx. Branch Mgr.

Motion Industries, Inc. 611 E. Int'l Airport Rd. Anchorage, AK 99518 Phone: 907-563-5565 Fax: 907-563-5536

Chris Ransom, Anch. Branch Mgr.

N C Machinery Co. 6450 Arctic Blvd. Anchorage, AK 99518 Phone: 907-786-7500 Fax: 907-786-7580

John Harnish, Pres./CEO

Northwest Ironworkers EA 10828 Gravelly Lk. Dr. #212 Lakewood, WA 98499 Phone: 253-984-0514

Ron Piksa, Co-Chair

Polar Supply Co. 300 E. 54th Ave. Anchorage, AK 99518-1230 Phone: 907-563-5000 Fax: 907-562-7001

Ed Waite, Sr. VP

Prestige Stone & Tile 11221 Olive Ln. Anchorage, AK 99515 Phone: 907-929-2523 Fax: 907-349-0164

Michael Russo Jr., Pres.

Puget Sound Pipe & Supply Co. 2120 Spar Ave. Anchorage, AK 99501 Phone: 907-277-7473 Fax: 907-277-9656

Scott English, Alaska Sales Mgr.

Rino's Tile & Stone 2310 Azurite Ct. Anchorage, AK 99507 Phone: 907-743-1075 Fax: 907-743-1076

Ryan Sjostrom, Member

AK AK Estab. Estab. Empls. Empls.

Services Services

1970

2007

1926

230

The Northwest Ironworkers Employers Association is a labor-management group that deals with common issues. Workplace safety, OSHA standards, drug-free-workplace and more.

1985

Polar Supply is Alaska's leading supplier of industrial products and construction materials. Putting customer service first, Polar has consistently delivered for clients large and small. A Division of Spenard Builders Supply with locations in Anchorage, Fairbanks and Kenai.

2005

Granite, marble, limestone, travertine and quartz countertops.

1984

Alaska's largest supplier of pipe, valves and fittings to Alaska oilfields. Two locations in Alaska: Anchorage and Kenai.

2003

Custom fabrication of granite, marble, travertine and quartz surfaces for your home or business.

www.motionindustries.com

sfield@ncmachinery.com ncmachinery.com

www.ironemployers.com

dshooner@polarsupply.com polarsupply.com

prestigestone@alaska.net www.prestigestonetile.com

senglish@pspipe.com www.pugetpipe.com

rinosak@yahoo.com www.rinostileandstone.com

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Statewide Calendar – Post your event! Read past issues in our archives.

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Fishing, tourism, forestry all part of revitalization Page 14

Great Bear Petroleum

Indie wants long-term production tests on oil shale wells Page 52

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www.akbizmag.com • Alaska Business Monthly • March 2013

Company Company

TopExecutive Executive Top

Rivers Wood Products 1780 Richardson Hwy. North Pole, AK 99705 Phone: 907-488-0888 Fax: 907-488-1543

Doug Scherzer, Gen. Mgr.

Specialty Products Inc. 1425 Spar Ave. Anchorage, AK 99501 Phone: 907-276-7932 Fax: 907-279-2749

Mike Brunke

Spenard Builders Supply Inc. 840 K St., Suite 200 Anchorage, AK 99501 Phone: 907-261-9105 Fax: 907-261-9142

Ed Waite, Senior VP

Statewide Door & Glass 221 E. Ship Creek Ave. Anchorage, AK 99501 Phone: 907-562-2074 Fax: 907-562-1803

Mike Hammer, Pres.

Surveyors Exchange Co. 3695 Springer St. Anchorage, AK 99503 Phone: 907-561-6501 Fax: 907-561-6525

David Wilmarth, Owner

Valley Sawmill 10600 Cordova St. Anchorage, AK 99515 Phone: 907-563-3436 Fax: 907-522-3980

Greg Bell, Pres.

Washington Crane & Hoist 1200 E. 76th Ave., Suite 1202 Anchorage, AK 99518 Phone: 907-336-6661 Fax: 907-336-6667

Mike Currie, VP

AK AK Estab. Estab. Empls. Empls.

Services Services

1984

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

1974

Manufacturer and distributor of polyurethane spray and pour foams, polyurea elastomer coatings, and application equipment. Solutions for: oil and gas, mining, wastewater, building insulation, marine, and many other industries. Year-round 24-7 tech support, classroom and offsite training.

1952

700

Provides a full line of building materials and home-improvement products to fill the needs of residential and commercial contractors.

1992

1969

Satellite phone and two-way radio specialists, auto-desk software, surveying instruments, sales, rentals and service.

1979

GMill heavy timbers, house logs, rough lumber. Log supply from Kodiak area.

1975

doug@riverswoodproducts.com www.riverswoodproducts.com

mikeb@specialty-products.com www.specialty-products.com

info@sbsalaska.com sbsalaska.com

mike.statewide@alaska.net www.Statewidedoors.com

garza@tse-ak.com www.tse-ak.com

valleysawmill@yahoo.com www.valleysawmill.com

www.washingtoncrane.com

N E E R G G N I D L I BU

Gain an environmentally friendly and sustainable structure by choosing AMVIC ICF as your foundation solution.  Generates as little as 1% construction waste  Comprised of over 60% recycled materials  Reduces energy consumption  Easy to install

ANCHORAGE • 563-5000 FAIRBANKS • 452-4743

www.akbizmag.com • Alaska Business Monthly • March 2013

109

ALASKA BUSINESS MONTHLY’S 2013 CONSTRUCTION DIRECTORY

COMMERCIAL INDUSTRIAL SUPPLIERS

visitor industrY

Dallas Seavey runs overland along the Bering Sea coast 8 miles from the finish line in Nome in 25 mph winds, Iditarod 2012.

Iditarod Trail Sled Dog Racers Adapt Climate change, the bane of the dog musher

“

BY JOETTE STORM

orthern Alaska was once a very warm country. Alaska was close to the sun.” So writes William Oquilluk in his book, People of Kauwerak. Oquilluk, an Iñupiat Eskimo, sought the history of his people from elders in Teller, Mary’s Igloo and other northern villages. When he would hear the same story from three sources, he would write it down to preserve the legends. Alaskans have been watching the weather and telling stories about it for as long as there have been people living in this Great Land. Some reports were for official purposes, some for passing on indigenous knowledge, and some as the topic of dinner table conversation. R. L. Goodwin, district engineer of the Alaska Road Commission, surveyed a route from Seward to Nome to open the country to resource exploration. Goodwin reported deep snows in the passes of the Chugach Mountains in 1908.

110

Newspaper accounts frequently relayed reports of unusually harsh conditions, deep snows one season and a scarcity the next. The Nome Nugget and Iditarod Pioneer published Roald Amundsen’s prediction of climate change in 1912. While in Nome, the famous explorer hypothesized that the “great ice wedge which lay between the Arctic and Atlantic oceans was constantly moving and would eventually break causing a flow into the Atlantic.” Amundsen predicted warmer Pacific waters would then flow into the Bering Sea. In 1925 when the port city of Nome was experiencing a deadly diphtheria outbreak, Wild Bill Shannon departed Nenana with the lifesaving serum in minus 43 degrees Fahrenheit weather. Winter ice had closed the port so it fell to the intrepid sled dog drivers to brave the elements and relay the serum 674 miles across tundra and frozen rivers.

Reports fi xed the wind chill on Norton Sound at minus 83 when Leonhard Seppala took the handoff. Today’s Iditarod Trail Sled Dog Race competitors and race organizers face the same variable conditions that indigenous peoples, adventurers, miners and pioneers have experienced over both ancient and modern history. Dan Seavey, who has run the Iditarod five times between 1973 and 2012, recalls ’74 being the coldest run in his memory. “Seven of us went into snow cave survival mode in Ptarmigan Pass,” he says. “When George Attla and I arrived at the Salmon River check point near McGrath, the thermometer registered minus 58 degrees.” However, a few days later upon arrival in Nome, water was standing in the streets. Seavey says there are three common race conditions: warm, cold and windy. “One must understand that the race course passes through many mini local

www.akbizmag.com • Alaska Business Monthly • March 2013

climate zones—coastal marine (warm and moist), the dry cold Interior, and Arctic coastal (warm and windy)—with a mix of transitional areas in between. So for a given race, one can expect wet, windy and snowy conditions.

the winning musher crossed the finish line. Those temperatures are a wild up and down swing—the coldest being minus 19 degrees in 1995 and the warmest 32 degrees above zero in 1974.

Climate Variability

For Iditarod Race Marshal Mark Nordman, this means the Race Committee must be prepared for anything and everything. Having competed in the race himself five times and been involved in the logistics off and on since 1989, Nordman has developed an expertise in trail conditions. “Every race is different. Last year we were dealing with record snowfall,” he says. As of January, the snow was minimal. The modern course has been rerouted more than once, just as in the 1910s when snow or lack of it forced mail and supply drivers to alter routes. A 1915 edition of the Seward Gateway blamed slow mail delivery on lack of snow: “People have not been accustomed to having so little snow and the fact is overlooked that this year is an abnormal one in that respect. The freezing over of the Arm, Mr. Eide says, enables mushers to cut out the worst part of the trail.” As recently as 2003, the sled dog race went to Fairbanks due to weather conditions. It was rerouted in burn areas after wildfires ravaged vegetation. Nordman recently had a crew in the Farewell area to clear debris. Nordman spends a lot of time traveling along the trail with his associate Andy Willis, an Iditarod veteran, pilot and snowmobiler, surveying it first-

Climate variability is one of the factors that make the Iditarod the ultrachallenge it is, says Gary Hufford, senior scientist at the National Weather Service. He has been studying weather in relation to walrus habitat since the 1980s. Observations in specific areas can indicate a pattern of change, he says. However, from year to year there can be great variability, which makes interpretation of the data difficult. In a 50-year study of mean annual temperatures for the entire state, 1976 stands out as the point in time when real change became apparent. Most of the mean annual temperatures after 1976 are above zero. However, Richard Thoman, lead forecaster for the NWS, says the last supercold outbreak in 1989 was in the midst of the 25-year warming cycle. To prove the point about localized weather, he notes that Barrow experienced the warmest February on record in ‘89. Thoman, who started his career in Nome, has 25 years of personal observations. “The temperatures are rising all across the state, particularly in winter and spring,” he says. His record of conditions in Nome shows a 51-degree difference in temperature on the days

Trail Conditions

hand. From early fall right up to race day, they fly the route and interact with the local population. “I listen to what the elders say about what the berries are like and talk to those who travel sections such as Grayling to Kaltag about conditions they encountered,” he says. That’s important because until the 1990s many communities like Shaktoolik and Koyuk did not record weather observations, says Rick Thoman. Those areas have very localized weather phenomena: blowing snow, low visibility and winds that can make the journey a fierce battle with nature. One of the conditions of concern is sea ice. Gary Hufford says sea ice changes are one obvious indication of climate change. Since 1996, he observed an 8 degree Celsius temperature increase in the Bering and Chukchi seas. “We believe this is causing early melt in spring and later formation in winter,” he says, adding that he thinks that results in early winter storms, larger waves, erosion and coastal flooding. “As always, the biggest issues for the Race in the future will be big snow storms, extreme cold and extreme warm. The portion of the Trail that will be affected first will be the section across Norton Sound. Change may affect the start of the race in March as winter shortens and spring starts earlier,” Hufford says.

Serious Support

Despite the variability, Race organizers take their work supporting the compet-

Iditarod Facts

Musher Seavey, Dallas Baker, John Mackey, Lance Mackey, Lance Mackey, Lance Mackey, Lance King, Jeff Sørlie, Robert Seavey, Mitch Sørlie, Robert Buser, Martin Swingley, Doug Swingley, Doug Swingley, Doug King, Jeff Buser, Martin King, Jeff Swingley, Doug Buser, Martin King, Jeff Buser, Martin

Time to Nome 09d 04h 29m 26s 08d 18h 46m 39s 08d 23h 59m 09s 09d 21h 38m 46s 09d 11h 46m 48s 09d 05h 08m 41s 09d 11h 11m 36s 09d 18h 39m 31s 09d 12h 20m 22s 09d 15h 47m 36s 08d 22h 46m 02s 09d 19h 55m 50s 09d 00h 58m 06s 09d 14h 31m 07s 09d 05h 52m 26s 09d 08h 30m 45s 09d 05h 43m 13s 09d 02h 42m 19s 10d 13h 02m 39s 10d 15h 38m 15s 10d 19h 17m 15s

Swenson, Rick Butcher, Susan Runyan, Joe Butcher, Susan Butcher, Susan Butcher, Susan Riddles, Libby Osmar, Dean Mackey, Rick Swenson, Rick Swenson, Rick May, Joe Swenson, Rick Mackey, Dick Swenson, Rick Riley, Gerald Peters, Emmitt Huntington, Carl Wilmarth, Dick

12d 16h 34m 39s 11d 01h 53m 23s 11d 05h 24m 34s 11d 11h 41m 40s 11d 02h 05m 13s 11d 15h 06m 00s 18d 00h 20m 17s 12d 15h 07m 33s 12d 14h 10m 44s 16d 04h 40m 10s 12d 08h 45m 02s 14d 07h 11m 51s 15d 10h 37m 47s 14d 18h 52m 24s 16d 16h 27m 13s 18d 22h 58m 17s 14d 14h 43m 45s 20d 15h 02m 07s 20d 00h 49m 41s

IDITAROD RECORDS Dallas Seavey 2012

Youngest Musher to Win

John Baker

2011

Rick Swenson Lance Mackey Mary Shields Libby Riddles Doug Swingley Robert Sørlie

Fastest Winning Time 1977-79-81-82-91 Most Times Won (5) 2007-08-09-10 Most Consecutive Wins (4) 1974 First Woman to Finish 1985 First Woman to Win 1995 First Winner from Outside Alaska 2003 First Winner from Overseas

MULTIPLE WINNERS Rick Swenson Susan Butcher Martin Buser Lance Mackey Doug Swingley Jeff King Robert Sørlie

www.akbizmag.com • Alaska Business Monthly • March 2013

5 4 4 4 4 4 2

1977-79-81-82-91 1986-87-88-90 1992-94-97-2002 2007-08-09-10 1995-99-2000-01 1993-96-98-2006 2003-05

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SOURCE: Iditarod Trail Committee iditarod.com

CHAMPIONS Year 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 1979 1978 1977 1976 1975 1974 1973

Mean Annual Temperature Departure for Alaska (1949 - 2011) )

4.5 3.5

Departure (°F)

2.5 1.5 0.5 -0.5 -1.5 -2.5 -3.5

Observe & Adapt

-4.5 1949 1954 1959 1964 1969 1974 1979 1984 1989 1994 1999 2004 2009

Total Change in Mean Seasonal and Annual Temperature (°F), 1949 - 2011 Region Arctic Interior

West Coast

Southcentral

Southeast

Location Barrow Bettles Fairbanks Big Delta McGrath Kotzebue Nome Bethel King Salmon St Paul Cold Bay Talkeetna Gulkana Anchorage Homer Kodiak Yakutat Juneau Annette Average

Winter 7.3 7.2 7.0 9.0 7.4 6.6 4.5 6.7 8.0 0.7 1.5 8.9 7.5 5.8 5.4 1.3 5.4 6.4 3.9

Spring 4.8 4.7 3.9 3.6 4.7 1.8 3.1 4.3 4.1 1.4 1.2 5.4 2.4 3.5 3.4 2.0 3.0 2.9 2.3

Summer 3.2 1.8 2.3 1.1 2.5 2.7 2.3 1.8 1.2 2.3 1.5 2.9 0.8 1.4 2.8 1.1 2.1 2.0 1.7

Autumn 4.5 1.6 0.1 0.2 1.0 1.7 0.4 -0.1 0.6 1.1 0.8 2.5 0.1 1.7 1.4 -0.5 0.7 1.3 0.2

Annual 4.9 3.9 3.3 3.4 3.9 3.2 2.5 3.2 3.4 1.4 1.2 4.9 2.7 3.2 3.4 0.9 2.8 3.1 1.9

5.8

3.3

2.0

1.0

3.0

Infographic, chart and table courtesy Alaska Climate Research Center — Geophysical Institute - UAF

112

itors seriously and try to give them as good a base trail as weather will allow. “Sometimes I think the observers don’t realize what goes on behind the scenes to support the mushers and make sure the dogs are cared for,” says Nordman. Each competitor ships between 1,500 pounds and 2,300 pounds of dog food, blankets and gear for the team to be cached along the route. As of early January there were 68 teams registered. That’s a lot of airplane trips up and down the Interior. The Race Committee will provide 1,500 bales of straw purchased from Delta farmers, 1,200 cases of HEET for providing cooking and warming fires, and 15,300 trail markers posted along the vast open stretches of tundra and river bank. Nordman characterizes the marshaling of the Iditarod as “probably the best reality show about Alaska.” This year one of the issues being discussed was whether to reroute around the infamous “Steps” between the Finger Lake and Rainy Pass checkpoints. The Steps are a series of switchbacks leading down to the Happy River. “We now have a route that allows us to bypass pass them in a low-snow year,” says Nordman. The second route, which is good in a low-snow year, is a winter access trail established as a supply route to a mining exploration site. The Iditarod Race community is always evolving to be prepared for whatever conditions they will face. Racers must train their teams to be totally rounded for any conditions. That means training them in different locales where they can become accustomed to winds like the Topkok blow hole. Competitors like Mitch and Dallas Seavey, both champions, have to travel up north to train because Southcentral Alaska winters are often warmer and creeks are not frozen enough. Dan Seavey says some mushers are breeding dogs with lighter coats due to the warming temperatures. And they all pack water repellant gear for those wet areas. Training is as much about observing and adapting to climate and conditions on the ground as it is about feeding and training the dogs.  Author Joette Storm lives in Anchorage.

www.akbizmag.com • Alaska Business Monthly • March 2013

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ALASKA THIS MONTH Compiled By Tasha Anderson

dining

Photo courtesy of Bean’s Café

Empty Bowl Fills Hearts and Community

Empty Bowl attendees selecting their bowls.

very March Bean’s Café invites the Anchorage community to invest in unique pottery, sample award winning soups and support our fellow Alaskans, all in one afternoon. Empty Bowl is a fundraising event for Bean’s Café, a local nonprofit organization that provides food and shelter for the homeless during the day. Rebecca Simcox, Bean’s Café’s event and volunteer coordinator, adds: “We also hope that in addition to raising donations, we will bring greater awareness of the basic human needs, food and shelter.” Event participants pay $25 to pick out a unique, handcrafted bowl, specially created and donated for this event. “The members of the Clay Arts Guild support the event by throwing hundreds of bowls—and donating them for no cost,” says Simcox. Other individuals from University of Alaska Anchorage, the Anchorage School District and the Arc of Anchorage also donate pottery bowls they’ve made. Since an empty bowl begs to be filled, Empty Bowl accommodates with soups specially created for the event. “These award winning soup recipes were submitted from local chefs and individuals, and the top vegetarian and top meat recipes were chosen through a soup tasting competition held early in February,” Simcox says. Empty Bowl also features a silent auction and live music, and takes place March 9 from 11 a.m. to 2 p.m. at the Egan Center. The event often sells out, so buying tickets ahead of time is recommended. beanscafe.org 

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www.akbizmag.com • Alaska Business Monthly • March 2013

ALASKA THIS MONTH Compiled By Tasha Anderson

trAvel

Photo by John Bolling / Courtesy of Northern Alaska Tour Co.

Northern Alaska Tour Co. Elevates Alaska Winter Tours

A Dalton Highway Aurora Adventure tour vista.

hose hoping to view the northern lights may have difficulty maximizing their chances to see them— unless of course they contact Northern Alaska Tour Co., which specializes in granting access to the beauty of the Alaska Arctic, particularly the auroras. “We’ve been operating for 20-plus years; the last eight years have been when we’ve gotten really heavily involved in winter tourism, and particularly aurora excursions,” says Matt Atkinson, public relations manager. “We are very well positioned on the globe for aurora viewing,” Atkinson says. “There is a phenomenon called the auroral oval, which is essentially a halo that goes around the globe at a latitude north of the Arctic Circle—that is where the auroral activity is concentrated.” Northern Alaska Tour’s base itineraries are multi-day excursions that combine ground tours, overnight aurora viewing and flights to or from Fairbanks. Guests experience traveling on the Dalton Highway, crossing the Yukon River, viewing the trans-Alaska oil pipeline, and overnighting in either Coldfoot or Wiseman. During the day, travelers may enjoy a sled dog ride or visit Atigun Pass in the Brooks Range to observe the scenery and occasional sheep or caribou. “Coldfoot is a unique experience in and of itself,” Atkinson says. “It’s a contemporary slice of life in Alaska where you have truckers, miners and pipeline workers from across the world converging.” Northern Alaska Tour Co. also provides many other tours, including day tours and polar bear tours seasonally. northernalaska.com 

www.akbizmag.com • Alaska Business Monthly • March 2013

115

ALASKA THIS MONTH Compiled By Tasha Anderson

entertAinment

Cama-i Dance Festival

Bethel Dance Group Dolls by Maria Charles.

“

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ama-i”—pronounced cha-MY—means welcome in the language of the Yup’ik Eskimo people; and the yearly Cama-i Dance Festival does exactly that, welcomes Native Alaskans and other dancers from around the world to Bethel to share culture and a love of dance. This year the Cama-i Dance Festival is March 22, 23 and 24. This festival has been an annual event for more than 20 years, and over time the desire to be a part of Cama-i has naturally grown throughout the region. Thus, participation though performance is by invitation only, an absolute necessity when one considers the number of Alaska Native dance groups throughout the state—add to that the countless number of worldwide groups expressing individuality and culture through dance that are also willing and excited to participate. Various Alaska Native groups are invited to dance and make up the majority of the performers. Each year, two individuals are chosen as Living Legends. This is to honor those who have made a significant contribution to the preservation of their culture, usually elders, and often those who have worked to preserve cultural aspects that are near extinction. Two young people are also honored as a new generation taking up the torch of the old; one young man and one young woman are selected as the Mr. and Miss Cama-i. Contestants begin with an application and essay, then move on to a personal interview and issue questions. They lend aid to elders at the elders dinner, and participate in an on-stage introduction. Another staple is the Heart of the Drum, a celebration of the drum involving all Cama-i participants that remembers those who have passed on during the year. While participating as a dancer may be by invitation only, a warm “Cama-i” is extended to anyone who wants to travel to Bethel to enjoy the dancing and learn and absorb the local culture. bethelarts.com

www.akbizmag.com • Alaska Business Monthly • March 2013



EVENTS CALENDAR

Compiled By Alaska Business Monthly Staff

Anchorage 2

22 Iditarod Start

Known as “The Last Great Race on Earth,” the Iditarod has 68 teams entered this year for Iditarod 41. Ceremonial race start and Idita-Ride begins at 10 a.m., downtown. iditarod.com

Anchorage Youth Symphony Winter Concert

Currently under the direction of Linn Weeda, each concert features the Anchorage Youth Philharmonic with debut conductor William Waag. The 150 members of the Alaska Youth Orchestras come from throughout southcentral Alaska. Alaska Center for the Performing Arts, 7 p.m. myalaskacenter.com

Avi Avital

This Grammy nominated mandolinist is one of the world’s most exciting and entrepreneurial young musicians with a deep commitment to building a fresh legacy for the mandolin through virtuosic performances and exciting new repertoire. Alaska Center for the Performing Arts, 7:30 p.m. myalaskacenter.com

Arctic Entries

In the spirit of “This American Life,” “The Moth,” and other urban storytelling events, Arctic Entries brings Alaskans to the stage to share their personal stories; at each performance, seven people each tell a seven-minute long, true story relating to the show’s theme. This month the theme is: “Do It Yourself: Stories of Homemade Concoctions, Solo Journeys, and Taking Matters Into Your Own Hands.” Snow Goose Theatre, 7:30 p.m. arcticentries.com

Raven’s Ball

BeauSoleil

This 11-time Grammy nominee group mixes Cajun, zydeco, country, blues, bluegrass, Tex-Mex and Afro-Caribbean sound. Lathrop High School, 8 p.m. fairbanksconcert.org

Homer 23

Winter King Salmon Tournament

On average, 900 anglers from all over Alaska come to fight for that winning salmon in this one-day fishing extravaganza, and no need to catch a fish to win a prize; there is a merchandise prize give away every five minutes over the vhf radio. Every angler in the tournament is automatically entered into this random drawing. Kachemak Bay, 9 a.m. to 4 p.m. homeralaska.org

Juneau 22-24

Southeast Alaska Sports & Recreation Show

Vendors from the region offer products for purchase, as well as information and workshops about travel, adventures, sports and recreational opportunities. Centennial Hall & Convention Center, various times. juneausportsandrec.com

Raptor Center Open House

Event includes the Center’s education birds, kids’ door prices, educational materials, opportunities to start or renew memberships, volunteer information and light refreshments. Nugget Mall, noon to 2 p.m. juneauraptorcenter.org

Ketchikan 16

St. Patrick’s Day Auction

This black tie affair benefits the Healthy Alaska Natives Foundation. It is hosted by celebrity guests and features dinner, auction opportunities and award recognition for the foundation’s partners. Hotel Captain Cook, 7 p.m. inspiringgoodhealth.org

Annual auction benefiting the First City Council on Cancer, including silent and live auctions as well as a raffle. Ted Ferry Civic Center, 6 p.m. firstcitycc.com

3/29-4/21

TBD

Dead Man’s Cell Phone

This comedy is a poetic fantasy about our need to connect in our technologically obsessed world and a surrealistic fantasy that happens to be populated by eccentrically real people. Cyrano’s Theatre Co., various times. cyranos.org

Chatanika 16

Chatanika Days

The gold mining community of Chatanika, 30 miles north of Fairbanks, celebrates winter with outhouse races and a snowmobile tug-of-water. Chatanika, daylong. For more information contact 907-389-2164.

Fairbanks 15

Ladysmith Black Mombazo

The voices of Ladysmith Black Mambazo marry the rhythms and harmonies of their native South African musical traditions with the sounds and sentiments of gospel music. Lathrop High School, 8 p.m. fairbanksconcert.org

Nome Iditarod Finish

Known as “The Last Great Race on Earth,” the Iditarod finish and awards banquet is in Nome. iditarod.com

Sitka 1-24

Artigras

This music and art festival celebrates incredible creative energy. Events sponsored by the Arts Council include a singer/songwriters performance, children’s concert, the annual Wearable Art Show, Tattoo as Body Art show/contest, Art Walk and Film Contest community screening, among other community events. Various locations and times. artigras.info

Willow 3

Iditarod Restart

Known as “The Last Great Race on Earth,” the Iditarod restart for the 68 teams signed up to compete is in Willow, 2.p.m. iditarod.com

www.akbizmag.com • Alaska Business Monthly • March 2013

117

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118

www.akbizmag.com • Alaska Business Monthly • March 2013

ALASKA TRENDS

By Paul Davidson

Foreign Exchange Rates CNY & CAD 2000-2011

Chinese Yuan

2011

2010

2009

2008

2007

2006

2005

Canadian Dollar

2005

2003

2002

2001

2000

USD Forex Rates

2004

he Federal Reserve Bank of New York collects records of purchases through cable transfers payable to foreign countries taking note of their exchange rates. Foreign exchange rates, also known as “Forex rates,” are 9 set by the market through free trades 8 between individuals using different currencies or by government interven7 tion, known as “pegging.” The Federal 6 Reserve’s data for Canada, the United 5 States’ largest trading partner, shows 4 the Canadian dollar (CAD) growing in value from a low of 1.5997 CAD per 3 USD for January of 2002 to the 2012 rate 2 hovering around a one-to-one trade. 1 The chart shows the Chinese Yuan 0 Renminbi at around 8.27 per USD from 2001 to 2005. The pegged currency shows gradual increases in valuation to its current rate of 6.22 per USD. The devaluing of the Yuan causes imports to the U.S. from China to be more expensive and U.S. exports to China to be less expensive. The relatively expensive (strong) U.S. Dollar policy of the early 2000s made imports to the U.S. less expensive and ben-

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

efited the U.S. retail economic sector. The USD has seen some devaluation overall since the recession of 2008, which will make importing U.S. goods and services more appealing to those using stronger currencies. 

SOURCES: Federal Reserve Bank: www.federalreserve.gov/releases/h10/hist/; U.S. Census Bureau, Center for International Research CIR Staff Paper No.69: http://www.census.gov/population/international/ﬁles/sp/SP69.pdf; U.S. Presidents Economic Report, Ch 3. Whitehouse Crisis and Recovery In the World Economy: http://www.whitehouse.gov

ALASKA TRENDS HAS BEEN BROUGHT TO YOU THIS MONTH COURTESY OF AMERICAN MARINE/PENCO

www.akbizmag.com • Alaska Business Monthly • March 2013

119

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

120

By Paul Davidson Previous Report Period (revised)

Year Ago Period

Year Over Year Change

Units

Period

Latest Report Period

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

3rd Q12 3rd Q12 1st H12 1st H12

34,050 13,397,827 205.22 228.85

33,918 13,327,797 202.58 226.28

32,574 12,953,429 200.28 223.60

4.53% 3.43% 2.47% 2.35%

Number Filed Number Filed Number Filed

November November November

52 38 10

69 53 9

72 51 11

-27.78% -25.49% -9.09%

Thousands Thousands Thousands Thousands Thousands

November November November November November

336.31 188.24 44.28 35.41 35.33

339.92 187.25 45.25 36.55 36.04

340.08 189.91 44.76 36.16 35.56

-1.11% -0.88% -1.07% -2.08% -0.65%

Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands

November November November November November November November November November November November November November November November November November November November November November November November November November November November November November November November November November

328.0 36.3 281.7 16.7 16.4 13.2 12.7 6.9 4.8 62.0 6.5 34.9 6.2 9.9 20.6 5.6 6.3 3.9 14.6 27.2 46.6 32.8 27.9 5.8 18.1 11.0 85.6 15.5 26.5 8.6 43.6 26.0 3.8

325.5 41.4 284.1 17.0 16.7 13.3 15.4 9.0 6.7 62.6 6.5 35.0 6.3 9.9 21.1 5.8 6.3 4.0 14.7 27.7 47.1 32.6 29.1 6.2 18.6 11.2 86.1 15.8 26.6 8.6 43.7 26.0 4.1

318.0 38.5 279.5 16.6 16.1 13.6 14.5 7.4 3.6 62.4 6.0 35.8 6.1 10.7 20.6 5.4 6.5 4.4 14.9 26.2 43.8 31.9 29.3 5.6 19.9 11.1 85.3 15.9 26.5 8.7 42.9 25.3 3.8

3.14% -5.71% 0.79% 0.60% 1.86% -2.94% -12.41% -6.76% 33.33% -0.64% 8.33% -2.51% 1.64% -7.48% 0.00% 3.70% -3.08% -11.36% -2.01% 3.82% 6.39% 2.82% -4.78% 3.57% -9.05% -0.90% 0.35% -2.52% 0.00% -1.15% 1.63% 2.77% 0.00%

Thousands Thousands Thousands Thousands Thousands

November November November November November

359.98 199.15 46.94 37.96 38.40

361.32 197.16 47.60 38.79 38.76

366.36 202.31 47.78 39.00 39.10

-1.74% -1.56% -1.76% -2.68% -1.78%

Percent Percent Percent

November November November

6.6 5.5 5.7

5.9 5 4.9

7.2 6.1 6.3

-8.33% -9.84% -9.52%

www.akbizmag.com • Alaska Business Monthly • March 2013

ALASKA TRENDS

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

By Paul Davidson Previous Report Period (revised)

Year Ago Period

Year Over Year Change

Units

Period

Latest Report Period

Percent Percent Percent

November November November

6.7 8 7.4

5.8 7 7.5

7.3 9 8.2

-8.22% -11.11% -9.76%

Millions of Barrels Billions of Cubic Ft. $ per Barrel

November November November

16.60 8.84 105.24

16.95 9.12 107.30

17.79 9.64 115.67

-6.73% -8.35% -9.02%

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

November November November November November

8 1809 1,746.68 32.443 0.952

9 1834 1,746.68 34.18 0.96

7 2011 1,737.48 33.08 0.96

14.29% -10.04% 0.53% -1.93% -0.59%

Millions of $ Millions of $ Millions of $

November November November

15.32 8.20 7.12

24.96 9.69 15.27

20.92 3.42 17.50

-26.77% 139.70% -59.31%

Total Deeds Total Deeds

November November

No Data 283

No Data 386

1044 No Data

N/A N/A

Thousands Thousands

November November

334.11 65.79

346.63 71.46

No Data 60.93

N/A 7.97%

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

November November November November November November November

42,978.90 43,598.90 176.2 1,568.0 5.3 1.50 239.8

42,369.00 42,994.90 127.5 1,568.0 33.7 35.90 (135.3)

38,566.00 39,069.30 105.2 (517.7) (108.3) -5.6 (462.9)

11.44% 11.59% 67.49% -402.88% -104.89% -126.79% -151.80%

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

3rd Q12 3rd Q12 3rd Q12 3rd Q12 3rd Q12 3rd Q12 3rd Q12 3rd Q12 3rd Q12

2,191.15 61.20 169.47 1,137.65 8.01 1,917.02 1,863.43 599.95 1,263.48

2,100.47 56.74 163.91 1,129.26 8.21 1,832.07 1,787.23 527.08 1,260.16

2,105.62 49.64 156.23 1,097.05 7.05 1,847.06 1,800.05 543.72 1,256.33

4.06% 23.30% 8.48% 3.70% 13.69% 3.79% 3.52% 10.34% 0.57%

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

November November November November November

80.86 1.00 0.63 0.78 6.28

78.92 0.99 0.62 0.77 6.31

77.52 1.02 0.63 0.74 6.36

4.32% -2.63% -0.87% 5.91% -1.17%

www.akbizmag.com • Alaska Business Monthly • March 2013

121

Advertisers Index Alaska Air Cargo............................................. 67 Alaska Air Transit..........................................115 Alaska Media Directory...........................118 Alaska Rubber .................................................93 Alaska Ship & Drydock Co........................13 Alaska Tobacco Control Alliance.......123 Alaska Traffic Co.............................................83 Alaska USA Federal Credit Union.......29 American Fast Freight.................................65 American Marine / PENCO...................119 Anchorage Chrysler Dodge ..................113 Anchorage Opera.........................................116 Anchorage Sand & Gravel........................78 Arctic Office Products (Machines).....36 AT&T ...................................................................... 21 Bering Shai Rock & Gravel ......................85 Bristol Bay Native Corp..............................15 Business Insurance Associates Inc.....78 Calista Corp....................................................... 77 Carlile Transportation Systems............59 Chris Arend Photography......................122 City Electric Inc...............................................99 Construction Machinery

122

Industrial LLC................................................2 Cook Inlet Tug & Barge Inc.......................53 Cornerstone General Contractors.. 103 Crowley..................................................................71 Cruz Construction Inc................................97 Delta Western.................................................80 Design Alaska....................................................31 Donlin Gold........................................................85 Dowland-Bach Corp....................................47 Eklutna Native Corp..................................105 ERA ALASKA.....................................................61 ERA Helicopters..............................................52 Fairbanks Memorial Hospital................. 41 Fairweather LLC.............................................27 First National Bank Alaska..........................5 GCI . ................................................................ 11, 52 Global Services Inc. .....................................49 Granite Construction..................................68 Historic Anchorage Hotel.......................114 Holmes Weddle & Barcott......................80 Horizon Lines.................................................101 IMPLUS Footware LLC................................35 Iron Dog Inc........................................................33

Judy Patrick Photography........................62 Kinross Ft. Knox..............................................22 Landye Bennett Blumstein LLP.............31 Lynden Inc. ...........................................................3 Medical Park Family Care........................40 Municipal Light & Power...........................24 N C Machinery.................................................89 NALCO Energy Services...........................47 Neeser Construction Inc. ........................ 91 New York Life....................................................39 Northern Air Cargo............................ 44, 45 Northrim Bank.................................................79 Oxford Assaying & Refining, Inc........116 PacArctic Logistics........................................18 Pacific Alaska Freightways.......................75 Pacific Pile & Marine.......................8, 9, 10 Pacific Rim Media/ Smart Phone Creative........................118 Paramount Supply.......................................118 Parker, Smith & Feek.....................................17 Peak Oilfield Service Co. . ........................49 Pen Air . .................................................................19 Personnel Plus................................................114

PistenBully..........................................................62 Polar Supply Co........................................... 109 Rotary District 5010...................................115 Ryan Air.................................................................37 Span Alaska Consolidators..................104 Spenard Builders Supply . ........................95 Stellar Designs Inc.......................................118 STG Inc..................................................................23 Tikchik Lodge....................................................18 Totem Ocean Trailer Express (TOTE)..63 Trailercraft Inc. Freightliner of Alaska... 60 True North FCU.............................................118 Tutka LLC.............................................................87 UIC Construction Services...................107 Ukpeagvik Iñupiat Corp..............................16 Unit Company...................................................87 University of Alaska Anchorage WWAMI.......................................................40 Vitus Marine LLC...........................................117 Washington Crane & Hoist......................25 Wells Fargo ....................................................124 Workers Compensation Commission of Alaska Inc..............................................118 Yukon Equipment...........................................69

www.akbizmag.com • Alaska Business Monthly • March 2013

579

MILLION

PER YEAR

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Cos Real

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Business Payroll Services

Get $100 and free 2013 W-2s/1099s Why switch to Business Payroll Services? When you switch your payroll processing to Wells Fargo Business Payroll Services we’ll give you a $100 gift card and waive the fees to process your first set of 2013 W-2 and 1099 forms in 2014.1 Get everything you need to process your payroll and: • Convenience. Access your banking and payroll accounts through Business Online Banking. • Flexibility. With the online payroll you can enter your payroll data anytime, anywhere. • Choice. You choose the input method best for you — online, phone, fax, email and PC.

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Free 2013 W-2s/1099s in 2014 offer and $100 Visa® Gift Card offer for Retail business customers. This offer is valid between January 1 and April 15, 2013. To qualify for the $100 gift card, paid in the form of a Visa Gift Card valued at $100, the new Business Payroll Services customer must have a first payroll processing date between January 1 and April 15, 2013. The $100 gift card will be sent within 90 days of first payroll processing. The 2013 W-2/1099 offer waives the base fee and the per active/termed employee fee for the initial set (one W-2 or one 1099 for each employee or contractor) of 2013 W-2 and 1099 forms. The waiver does not include fees for customer requested reprints of 2013 W-2s/1099s. To qualify for the W-2/1099 fee waiver, the new customer must have a first payroll processing date between January 1 and April 15, 2013 and the customer must remain active with Wells Fargo Business Payroll Services as of January 31, 2014 (the date by which the IRS requires all W-2s and 1099s to be processed and delivered for the 2013 calendar year). This offer is not valid for former Business Payroll Services customers who have ended their Business Payroll Services relationship within 180 days of their first payroll processing date under this promotion. Offer is not valid with other offers and not available to foreign customers. All other fees apply. Offer is subject to change. Gift card is subject to terms and conditions of the issuer. The value of the gift card will be reported as income to the IRS, state, and local tax authorities if required by applicable law, and the recipient is responsible for any federal, state, or local taxes due on this gift card. © 2013 Wells Fargo Bank, N.A. All rights reserved. Member FDIC. ECG-805309 1

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