Alaska Business Monthly April 2016

A L A S K A’ S 10 0 L A R G E S T E M P LOY ER S

April 2016

C O R P O R AT E

Digital Edition

LEADER In All We Do Oil Field Services Government Contracting Natural Resources Tourism

WWW.DOYON.COM

The well-being of our shareholders— and a respect for our history in this place—is topmost in mind as we continually enhance our strong financial position.

April 2016 TAB LE

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DEPARTMENTS From the Editor ������������������������������������ 7 Inside Alaska Business ������������������� 133 Right Moves ������������������������������������� 136 Eat, Shop, Play, Stay �����������������������140 Events Calendar �������������������������������145 Business Events �������������������������������146 Alaska Trends �����������������������������������147 Ad Index ������������������������������������������� 152

CONTENTS ABOUT THE COVER Alaska Business Monthly’s 2016 Corporate 100 is revamped this year to present readers with the top 100 businesses ranked by the most Alaska employees. As with all our surveys, those numbers are self-reported and we only include companies that return our surveys, which we began sending out in January this year for the Corporate 100.

Cover Design: David Geiger

ARTICLES Bambino’s Baby Food CEO and founder Zoi Maroudas shows off some of the fresh ingredients used in her nutritionally balanced products.

Expanded in Digital Edition

Construction

48 | Sitka’s Blue Lake Expansion Project Wins Grand Award for Best Construction Project of 2015 AGC of America

Manufacturing

52 | Bambino’s Baby Food is Alaska Grown from Farm to Freezer Manufacturing start-up expands production, plans dedicated facility

By Heather A. Resz

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Education

56 | Career Advancement Courses Alaska universities offer professional development

By Kailee Wallis

DIGITAL EXCLUSIVES 138 | Accolades Compiled by Tasha Anderson 150 | Wells Fargo Celebrating 100 years of banking in Alaska

Correction Corrections and clarifications to the ABC of Alaska section of “Construction Workforce Training: Providing skilled workers throughout Alaska” published in March 2016: ABC of Alaska President Amy Nibert’s name was misspelled. Nibert has led the organization for the last four years, not five. ABC apprentices obtain instruction through self-study, not classroom instruction. Some applicants who apply for the program come in with experience and some with little to no experience.

Employers play a major role in guiding the apprentices as they advance through the program, knowing where their skill level is at and relaying that information to the journeyman and apprentice. John Moss, a completed apprentice now studying for his journeyman’s test, initially found work as an apprentice with Samson Electric not Samsung Electric.

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Workforce Training

58 | Alaska Forum Trains Environmental Technicians Apprenticeship program seeks employers for summer fieldwork recruits

By Rindi White

Energy

60 | Renewable Energy in Alaska State’s investments generate big returns

By Heather A. Resz

Expanded in Digital Edition

Photo courtesy of Peter Luchsinger/ Pal Photography

Financial Services

75 | A Layoff? Don’t Let Your 401(k) Languish Why you might want to take it with you when you go

By Lori McCaffrey, KeyBank Alaska Market President

Real Estate

92 | Lease Termination Tips for Commercial Tenants Numerous options are available

By Jeff Grandfield and Dale Willerton

Alaska Native Corporations Healthcare 64 | Developing Rural Alaska ANCs address energy crisis and infrastructure needs

By Russ Slaten

Financial Services

72 | Mergers and Acquisitions Help Alaska Companies Expanding markets and enhancing services

By Tracy Barbour

93 | Workforce Testing ‘Improves the bottom line’

By Russ Slaten

Expanded in Digital Edition

Construction

96 | Designing Open Concept Offices in Anchorage Stantec showcases interaction at CIRI’s Fireweed Business Center

By Rindi White

Alaska Business Monthly | April 2016 www.akbizmag.com

We believe in Alaska business In Alaska, there’s no such thing as “business as usual.”

From permafrost to daunting logistics and a changing economy, Alaska businesses face unique challenges.

Hard work, commitment, innovation. These are the hallmarks of Alaska business.

First National Bank Alaska began as a small community business. We’re local bankers who understand your business and what it takes to succeed.

Jenny Mahlen Vice President

FNBAlaska.com

Learn how local knowledge and experience make the difference. Call 907-777-4362 or 1-800-856-4362.

April 2016 TAB LE

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CONTENTS

special section

special section

Corporate 100

Mining

8 | Corporate 100 Executive Summary

By Tasha Anderson

104 | Alaska Mining Industry Outlook—2016 Still an attractive investment in bull market

By Curtis J. Freeman

36 | Corporate 100 Breakdown by Industry 38 | Alaska Business Monthly’s 2016 Corporate 100 Facts & Figures 42 | CONAM Construction Company Diversification proves successful

By Tasha Anderson 44 | Watterson Construction Maintaining quality relationships

By Tasha Anderson 46 | Alaska USA Federal Credit Union Working to eliminate obstacles

By Tasha Anderson

106 | Pogo Mine’s Tenth Anniversary First leg of a long journey

By Julie Stricker 110 | Innovations in Arctic Mining Engineers address challenges

By Russ Slaten 114 | Good News Abounds for Alaska’s Clean-Burning Coal Industry Usibelli is well-positioned and dedicated

By Bill Brophy

Engineering

118 | 3D Scanning Offers Solutions Modern surveying tools can also design

By Julie Stricker

Conventions & Meetings

Expanded in Digital Edition

76 | Maximizing the Value of Conferences to Communities ‘Bleisure Travel’ and ‘Bizcations’ emerge with social media boosts

By Karen Zak

86 | Alaska Is a Growing Global Convention Destination Attracting and planning international meetings

By Russ Slaten 88 | Secrets of Successful Meetings Collaboration, bandwidth, and social media

By Susan Harrington 6

Bornite drill cores shown by a local employee of the Upper Kobuk region in September 2012.

ARTICLES

special section

78 | Attracting Corporate Air Travelers in Alaska Airlines offer improved amenities and fleets

By Vanessa Orr

Courtesy of NovaCopper, Inc.

11 | 2016 Corporate 100 Directory

110

Oil & Gas

120 | Industry Players Weigh Cook Inlet Incentives Facing uncertainty with costs, benefits, taxes, and credits

By Heather A. Resz

Photo courtesy of United Way of Anchorage

129

ConocoPhillips employees volunteered at the Alaska Botanical Gardens during United Way of Anchorage’s 2015 Day of Caring.

Technology

102 | Fairbanks Fodar is ‘Ideal for Mapping Changes’ UAF scientist develops airborne measurement system

By Julie Stricker

129 | Corporate Philanthropy in the Alaska Oil and Gas Industry Millions of dollars and thousands of hours donated

By Tom Anderson

Legal Speak

132 | When the Music Stops— Will the Seat Still Be Empty?

The justices and decisions of the US Supreme Court

By Renea I. Saade

Alaska Business Monthly | April 2016 www.akbizmag.com

FROM THE EDITOR Follow us on and

Volume 32, Number 4 Published by Alaska Business Publishing Co. Anchorage, Alaska Jim Martin, Publisher 1989~2014

EDITORIAL STAFF

Managing Editor Associate Editor Art Director Art Production Photo Contributor

Susan Harrington Tasha Anderson David Geiger Linda Shogren Judy Patrick

BUSINESS STAFF President Billie Martin VP & General Manager Jason Martin VP Sales & Marketing Charles Bell Senior Account Mgr. Anne Tompkins Senior Account Mgr. Bill Morris

Account Mgr. Janis J. Plume

Accountant Ana Lavagnino 501 W. Northern Lights Boulevard, Suite 100 Anchorage, Alaska 99503-2577 (907) 276-4373 Outside Anchorage: 1-800-770-4373 Fax: (907) 279-2900 www.akbizmag.com Editorial email: editor@akbizmag.com ALASKA BUSINESS PUBLISHING CO., INC. ALASKA BUSINESS MONTHLY (ISSN 8756-4092) is published monthly by Alaska Business Publishing Co., Inc., 501 W. Northern Lights Boulevard, Suite 100, Anchorage, Alaska 99503-2577; Telephone: (907) 276-4373; Fax: (907) 279-2900, ©2016, Alaska Business Publishing Co. All rights reserved. Subscription Rates: $39.95 a year. Single issues of the Power List are $15 each. Single issues of Alaska Business Monthly are $3.95 each; $4.95 for October, and back issues are $5 each. Send subscription orders and address changes to the Circulation Department, Alaska Business Monthly, PO Box 241288, Anchorage, AK 99524. Please supply both old and new addresses and allow six weeks for change, or update online at www.akbizmag.com. Manuscripts: Send query letter to the Editor. Alaska Business Monthly is not responsible for unsolicited materials. Photocopies: Where necessary, permission is granted by the copyright owner for libraries and others registered with Copyright Clearance Center to photocopy any article herein for $1.35 per copy. Send payments to CCC, 27 Congress Street, Salem, MA 01970. Copying done for other than personal or internal reference use without the expressed permission of Alaska Business Publishing Co., Inc. is prohibited. Address requests for specific permission to Managing Editor, Alaska Business Publishing. Online: Alaska Business Monthly is available at www.akbizmag.com/Digital-Archives, www.thefreelibrary.com/Alaska+Business+Monthly-p2643 and from Thomson Gale. Microfilm: Alaska Business Monthly is available on microfilm from University Microfilms International, 300 North Zeeb Rd., Ann Arbor, MI 48106.

www.akbizmag.com

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Alaska’s Fiscal Frontier Springs Forward

n March the Alaska Legislature passed a nearly $9 billion FY17 Operating Budget and reduced the deficit by less than half a billion dollars. As we spring forward on the fiscal frontier there’s still work to be done and consequences to comprehend.

Luckily, we have some great thinkers continuing the quest to educate and inform us. Gunnar Knapp, Mouhcine Guettabi, and Matthew Berman of the Institute of Social and Economic Research at the University of Alaska Anchorage wrote a Draft Report of the Economic Impacts of Alaska Fiscal Options. It’s required reading.

Here’s an excerpt and a chart from the report found online at iser.uaa.alaska.edu.

The relative impacts of different fiscal options would vary for different regions of Alaska because income distribution varies between regions and because the economies of different regions vary in their relative dependence on state-funded jobs and services and on the trade and service industries which would be affected by the multiplier impacts of fiscal options.

Within a few years we will have to greatly reduce the deficit. Reducing the deficit will significantly impact Alaska’s economy, regardless of how or when we do it. Fully closing the deficit in one year would have a large impact on an economy already weakened by oil industry job cuts and past cuts to state capital spending. But not making significant progress towards reducing the deficit would also have large negative impacts including increased business and consumer uncertainty, reduced private investment, and further downgrading of Alaska’s credit rating.

Our economic adjustment to lower oil revenues will be smoother if we substantially reduce the deficit this year and also clearly demonstrate to Alaskans, businesses, and investors that we will make the necessary further changes to spending, revenues, and uses of Permanent Fund earnings to achieve sustainable state finances, reduce uncertainty about future state spending and how we will pay for it, and build confidence in Alaska’s fiscal future.

Alaska’s fiscal options would impact Alaska’s economy and society in many important ways beyond the short-term economic impacts which we estimated for this study. We should base our fiscal choices not only on their short-term economic impacts but also on their longer-term impacts on Alaska’s economy and society over time.

Summary of Fiscal Options & Estimated Impacts per $100 Million of Deficit Reductions

Note: The numbers shown for income and job impacts represent low and high estimates of impact based on different assumptions about how households and markets would react to changes in disposable income.

The folks at ISER have packed a wealth of information into the report, and we’ve packed a wealth of information into the April issue. The team at Alaska Business Monthly has put together another really great magazine—enjoy!

—Susan Harrington, Managing Editor

April 2016 | Alaska Business Monthly

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ALASKA BUSINESS MONTHLY | 2016 CORPORATE 100 | EXECUTIVE SUMMARY

C O R P O R AT E

Executive Summary

By Tasha Anderson

W

elcome to Alaska Business Monthly’s revamped Corporate 100.

For more than thirty years we’ve had the pleasure of honoring our Top 49ers, business that are at least 51 percent Alaskanowned ranked by revenue; over the years we’ve “lost” companies as they’ve expanded beyond those qualifications, often demonstrating their value as they’re purchased by international companies or transition to have national or even international shareholders.

Alaska’s economy is a big picture, and our Corporate 100 has been designed to capture yet another view. This year our Corporate 100 is comprised of any company that has at least one physical Alaska location and is willing to divulge their number of Alaska employees, the only criteria by which they are ranked.

A few notes on our data: All of the employee numbers enclosed here are self-reported.

Because the number of employees that any company has, especially large companies, can be fluid and because many of the largest industries in Alaska are seasonal by nature, employee counts can fluctuate drastically depending on the time of year—to level the playing field as much as possible, Alaska Business Monthly asked these organizations to report their peak number of employees.

If companies tied by number of Alaska Em-

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ployees, their rank in the list was then determined by year established in Alaska.

Top Employers

For the 2016 Corporate 100, our number one slot goes to NANA Regional Corporation, Inc., which reported 5,000 Alaska employees. That’s one third of their worldwide total of 15,000 employees. NANA has ten subsidiaries in Alaska, and many more outside in the Lower 48 and in Australia, which provide the gamut of support services in various industries including the federal government.

Alaska Native organizations are also the largest industry sector represented in the Corporate 100, with 13,739 Alaska employees between the twelve regional and village organizations represented here. This represents approximately 25 percent of their worldwide workforce of 53,203. Altogether they employ 20.3 percent of our Corporate 100 list. While the Alaska Native organizations are treated in the Corporate 100 (and in the Top 49ers) as their own sector of industry, in reality they provide almost every kind of service in Alaska, ranging from healthcare to travel to natural resource extraction support services.

The next business sector is Retail/Wholesale trade, accounting for 15.2 percent of Alaska employees. In total these ten companies report 10,259 employees. However, it’s a very different picture looking at worldwide percentages, as this is only approximately 3 percent of their worldwide reported total of 307,667; as a note, Carrs/Safeway, which

completed a merger with Albertsons in January 2015, reported 36,000, a figure for its Seattle division, not a worldwide number.

On the other hand, two companies in this category, Alaska Sales & Service and Alaska Commercial Co., report a 100 percent Alaskan workforce.

Following closely is the Transportation industry. Transportation has the largest number of organizations represented, with eighteen making the list, reporting all together 9,528 Alaska employees and 632,018 worldwide employees; if we were ranking by worldwide employees, that would qualify this sector as the largest. Alaska employees are a mere 1.5 percent of that total. Transportation includes two of our recent Top 49 “graduates”: Carlile, which was acquired by Saltchuk Resources in 2013, and Ravn, acquired by JFLCO in July 2015.

After Transportation is Health & Wellness at 13.6 percent, the industry with the highest projection of growth in terms of new jobs from 2012-2022 according to the Alaska Department of Labor and Workforce Development, Research and Analysis Section. This sector reported 9,163 Alaska employees, approximately 7 percent of the 119,589 employees reported worldwide.

While six of the nine reporting organizations are hospitals, this sector also includes The Alaska Club, a gym; Geneva Woods, which is a pharmacy; and Beacon, which provides occupational health services such as drug and workplace fitness testing.

Industrial Services is the next highest sector, with 8 percent of the Alaska employees reported. In total, the twelve companies in this sector reported 5,398 Alaska employees and 412,065 worldwide employees.

Alaska employees count for 1.3 percent of the worldwide figure. Four of the companies here report a 100 percent Alaskan workforce: Offshore Systems, Inc.; Construction Machinery Industrial; Alcan Electrical & Engineering, Inc.; and Colville, Inc. The five Telecommunications sector companies report 247,279 worldwide employees, of which 9,528 are Alaskan, which is 1.5 percent. Only one company in this sector didn’t grow out of the great need in Alaska to innovate methods of communication across vast spaces and harsh conditions throughout the years—AT&T. The other four, GCI, MTA, Alaska Communications, and Microcom, are Alaska born and bred companies. Telecommunications represent 5.7 percent of the Alaska Employees reported for the 2016 Corporate 100.

The Oil and Gas industry accounts for 5.7 percent of the list; this may seem intuitively low as oil and gas has been and continues to be such a massive economic driver for Alaska, but many “oil and gas industry” employ-

Alaska Business Monthly | April 2016 www.akbizmag.com

ALASKA BUSINESS MONTHLY | 2016 CORPORATE 100 | COMPANY PROFILE

ees are in support service positions, and here we have included only three oil and gas explorers and producers and Alyeska Pipeline Service Co. The total number of Alaska employees for this group is 3,868, 3.4 percent of a worldwide reported total of 112,700.

Eight companies represent the Financial Services sector, seven banks/credit unions and BDO USA, which provides accounting, tax, audit, and consulting services. This sector represents 5.6 percent of Alaska employees reported, or 3,793 employees, 1.3 percent of worldwide employees, reported at 287,274.

Travel and Tourism comes in next, reporting 3,089 employees, 4.6 percent of the list total. This sector also reports 3,089 worldwide employees, the first of two sectors to report a 100 percent Alaska workforce, although all of these companies do have parent companies with employees outside of the state.

Following is Mining, accounting for 3.4 percent. The mining industry reports 2,328 Alaskan employees and 22,610 worldwide employees, meaning the Alaska employees account for approximately 10 percent of the worldwide picture, though this figure is high in part because Hecla Greens Creek Mining Co. did not report a number of worldwide employees.

Construction is next, reporting 1,097 Alaska employees, 1.6 percent of the list total. However, this figure is 44 percent of the worldwide total reported, 2,470. The Construction sector is comprised of five companies, two of which have 100 percent Alaskan employee pools. Price Gregory International and CONAM Construction Co. are in fact sister companies, both owned by a Houston-based parent company.

Five energy utilities represent the Utility sector, four electric companies and ENSTAR natural gas. These five reported 1,082 Alaska employees, and this is the other sector with a 100 percent Alaskan workforce.

The smallest sector included in the 2016 Corporate 100 is Manufacturing, both in terms of Alaska employees and number of participating companies, comprise of just two: Builders Choice, Inc. and Franz Bakery.

The two companies report 310 employees, just 0.5 percent of the total list. Worldwide, they have 4,250 employees, so Alaska houses approximately 7 percent of their employees.

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Alaska Economy

An economy isn’t just businesses and money; an economy is people. Alaska Business Monthly is excited to celebrate the businesses that employ Alaskans—the Alaskans that one by one manage the pieces that make Alaska living a real life, from telecommunications to bakeries; from accounting to flying; from healthcare to banking to getting the mail out.

R www.akbizmag.com

April 2016 | Alaska Business Monthly

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NANA Regional Corporation, Inc. PO Box 49 Kotzebue, AK 99503 907-442-3301

A

laska Business Monthly is proud to present this year’s Corporate 100—with a change-up this year.

We’ve ranked the list by number of Alaska employees. What we’ve found in past years is that all our Corporate 100 denizens are top corporate citizens—their leadership and employees exemplify philanthropy and community involvement while operating ethically and embracing environmental stewardship.

In addition, the Corporate 100 continuously support the Alaska economy by providing jobs and taking care of their employees. Alaska Business Monthly has showcased the Corporate 100 since 1993, and in these changing economic times we wanted to showcase the top employers in the state.

We are still considering a Corporate 100 event—maybe next year we’ll be gathering at the Dena’ina for an awards banquet with a charity fundraiser to celebrate the next group of one hundred businesses that make up the annual list. For this year we’ll use the pages of the magazine to celebrate the Alaska Business Monthly 2016 Corporate 100—Alaska’s Top Employers.

nana.com/regional | news@nana.com

Year Founded: 1972

Natural resource development, land management, oil and gas sector, commercial sector, federal sector.

Alaska Employees: 5,000

Wayne Westlake, President/CEO

Worldwide Employees: 15,000

NATIVE ORGANIZATION

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Arctic Slope Regional Corporation PO Box 129 Barrow, AK 99723 907-852-8633 Rex A. Rock Sr., President/CEO

asrc.com | twitter.com/ASRC_AK

Year Founded: 1972

ASRC is the largest Alaskan-owned and operated company and has six major business segments: petroleum refining and marketing, energy support services, construction, government services, industrial services and resource development.

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Providence Health & Services Alaska 3760 Piper St., Suite 2021 Anchorage, AK 99508 907-212-3145 Bruce Lamoureux, Chief Executive

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alaska.providence.org | info.phsa@providence.org

Providence Health & Services - Renton, WA

Fred Meyer

www.fredmeyer.com Retail food and department store.

www.akbizmag.com

Estab. in Alaska: 1902 Alaska Employees: 4,115 Worldwide Employees: 68,500

Year Founded: 1922 Estab. in Alaska: 1975 Alaska Employees: 3,196

Greg Parker, District Manager RETAIL/WHOLESALE TRADE

Alaska Employees: 4,580

Year Founded: 1902

Healthcare, serves Alaskans in six communities: Anchorage, Eagle River, Matanuska-Susitna Valley, Kodiak Island, Seward and Valdez.

State’s largest private employer. PH&SA includes Providence Alaska Medical Center.

HEALTH & WELLNESS

20000 West Dimond Blvd Anchorage, AK 99515 907-267-6778

Estab. in Alaska: 1972

Worldwide Employees: 10,697

NATIVE ORGANIZATION

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Estab. in Alaska: 1972

The Kroger Co. - Cincinatti, OH | NYSE: KR

Worldwide Employees: 35000 April 2016 | Alaska Business Monthly

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ALASKA BUSINESS MONTHLY | 2016 CORPORATE 100 | DIRECTORY

C O R P O R AT E

ALASKA BUSINESS MONTHLY | 2016 CORPORATE 100 | DIRECTORY

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Carrs Safeway 5600 Debarr Rd., Suite 100 Anchorage, AK 99504 907-339-7704

safeway.com Retail food, drug and fuel.

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RETAIL/WHOLESALE TRADE

Safeway / Albertsons - Boise, ID

CH2M

ch2m.com/alaska | Terry.Bailey@ch2m.com

949 E. 36th Ave., Suite 500 Anchorage, AK 99508 907-762-1500

Premier Alaskan oil & gas contractor with planning, siting, engineering, procurement, logistics, sealift/truckable modules fabrication, piping, construction, program & construction management, operations & maintenance, supporting oil, gas, transportation, environmental, water, mining & government.

Terry Bailey, Sr. VP/AK Reg. Mgr.

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INDUSTRIAL SERVICES

CH2M HILL Companies, Ltd. - Englewood, CO

GCI

gci.com | facebook.com/gciak

2550 Denali St., Suite 1000 Anchorage, AK 99503 907-265-5600 Ron Duncan, CEO

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NYSE: GNCMA

BP Exploration (Alaska), Inc.

alaska.bp.com | @BP_Alaska

Janet Weiss, Reg. President

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Integrated communications provider offering facilities-based local and long distance telephone services, Internet and TV services, statewide wireless service, data, video conferencing, tele-health, enterprise network design and IT professional services support.

TELECOMMUNICATIONS

PO Box 196612 Anchorage, AK 99515-6612 907-561-5111

In Alaska BP operates nine North Slope oilfields in the Greater Prudhoe Bay area and owns significant interests in six producing fields operated by others. BP also owns significant non-operating interests in the Point Thomson development project and the Liberty prospect.

OIL & GAS

BP PLC - London England | NYSE: BP

Alaska Airlines

alaskaair.com

4750 Old Int’l Airport Rd. Anchorage, AK 99502 907-266-7200

Alaska Airlines and its sister carrier, Horizon Air, together, provide passenger and cargo service to more than 100 destinations in Alaska, Canada, Mexico, Hawaii, Costa Rica, and the Lower 48.

Marilyn Romano, Reg. VP AK TRANSPORTATION

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Bay 10 Bristol Native Corporation 111 W. 16th Ave., Suite 400 Anchorage, AK 99501 907-278-3602

Alaska Air Group Inc. - Seattle, WA | NYSE: ALK bbnc.net | info@bbnc.net Construction, Government Services, Oilfield and Industrial Services, Petroleum Distribution and Tourism.

1650 Cowles St. Fairbanks, AK 99701 907-452-8181

fmhdc.com | kelly.atlee@bannerhealth.com General medical and surgical hospital, home care, hospice, behavioral health, cancer center, pain clinic, sleep disorders lab, cardiology, medical imaging center, rehabilitation, and long-term care.

Gregory Johnson, Dr. HEALTH & WELLNESS

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USA 12 Alaska Federal Credit Union PO Box 196613 Anchorage, AK 99519-6613 907-563-4567 William Eckhardt, President FINANCIAL SERVICES

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Year Founded: 1946 Estab. in Alaska: 1962 Alaska Employees: 2,285 Worldwide Employees: 22,007

Year Founded: 1979 Estab. in Alaska: 1979 Alaska Employees: 2,145 Worldwide Employees: 2,359

Year Founded: 1959 Estab. in Alaska: 1959 Alaska Employees: 1,900 Worldwide Employees: 20,000

Year Founded: 1932 Estab. in Alaska: 1932 Alaska Employees: 1,825 Worldwide Employees: 15,200

Year Founded: 1972 Estab. in Alaska: 1972

Worldwide Employees: 4,520

NATIVE ORGANIZATION

11 Fairbanks Memorial Hospital

Worldwide Employees: Seattle Division – 36,000

Alaska Employees: 1,359

Jason Metrokin, President/CEO

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Estab. in Alaska: 1950 Alaska Employees: 2,800

Stephanie Kennedy, District Manager

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Year Founded: 1901

Banner Health - Phoenix, AZ alaskausa.org | facebook.com/alaskausafcu Financial services including: checking, savings, and loans for members and their businesses, as well as mortgage and real estate loans, insurance, investments and financial planning services.

Year Founded: 1972 Estab. in Alaska: 1972 Alaska Employees: 1,300 Worldwide Employees: 47,000

Year Founded: 1948 Estab. in Alaska: 1948 Alaska Employees: 1,291 Worldwide Employees: 1,772

Alaska Business Monthly | April 2016 www.akbizmag.com

ALASKA BUSINESS MONTHLY | 2016 CORPORATE 100 | DIRECTORY

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13 Princess Alaska Lodges several Several, AK 99755 800-426-0500 Charlie Ball, President TRAVEL & TOURISM

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Marine 14 Alaska Highway System 7995 N. Tongass Hwy. Ketchikan, AK 99901 800-642-0066 John Falvey, Captain

facebook.com/princesslodges | aklodges@princess.com Princess welcomes the independent traveler with unmatched comfort in the midst of the grand Alaska wilderness. Awaken your sense of wonder and adventure by booking one of five Princess Lodges or a Rail Tour from Anchorage or Fairbanks to renowned Denali National Park.

Carnival Corp. - Miami, FL | NYSE: CCL ferryalaska.com | dot.ask.amhs@alaska.gov Providing marine transportation for passengers and vehicles to over 30 Alaska coastal communities. No pre-set itineraries. Amenities available include staterooms, dining, movie theatres, and viewing lounges.

15 ConocoPhillips Alaska, Inc. PO Box 100360 Anchorage, AK 99510 907-276-1215

conocophillipsalaska.com | COPAlaskaInfo@ConocoPhillips.com An independent exploration and production company. www. conocophillipsalaska.com; https://twitter.com/COP_Alaska; https:// www.facebook.com/conocophillip

Joe Marushack, Alaska President OIL & GAS

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Alaska Club 16 The 1400 W. Northern Lights Blvd.

Anchorage, AK 99503 907-337-9550 Robert Brewster, President HEALTH & WELLNESS

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Commercial Co. 17 Alaska 550 W. 64th Ave. Anchorage, AK 99518 907-273-4600

ConocoPhillips Company - Houston, TX | NYSE: COP thealaskaclub.com The Alaska Club has a network of statewide clubs offering a variety of classes, amenities, state-of-the-art equipment for adults and children.

Providing a variety of fitness options so our members stay motivated and engaged – we enable them to achieve their fitness goals.

Partnership Capital Growth - San Francisco, CA alaskacommercial.com | rwilhelm@northwest.ca Rural Alaska’s largest retailer of food, apparel, and general merchandise with continuous service since 1867.

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Inc. 18 Lynden, 6441 S. Airpark Pl. Anchorage, AK 99502 907-245-1544 Jim Jansen, Chairman

The North West Co. - Winnipeg, MB Canada | NYSE: NWF.UN lynden.com | information@lynden.com Lynden is a family of transportation companies with capabilities including truckload & less-than-truckload service, scheduled & charter barges, rail barges, intermodal bulk chemical hauls, scheduled & chartered air freighters, domestic & international air/ocean forwarding, and multi-modal logistics.

TRANSPORTATION

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Alaska 19 Ravn 4700 Old International Airport Rd. Anchorage, AK 99502 907-266-8394

flyravn.com | sales@flyravn.com Transportation; Scheduled passenger service, scheduled cargo and charter service.

20 Schlumberger Oilfield Services

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6411 A St. Anchorage, AK 99518 907-273-1700

J.F. Lehman & Company - New York, NY schlumberger.com | randerson2@slb.com Oilfield Services.

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Year Founded: 1963 Estab. in Alaska: 1963 Alaska Employees: 1,100

Year Founded: 1952 Estab. in Alaska: 1952 Alaska Employees: 1,000 Worldwide Employees: 16,900

Year Founded: 1986 Estab. in Alaska: 1986 Alaska Employees: 1,000 Worldwide Employees: 1,000

Year Founded: 1867 Estab. in Alaska: 1867

Worldwide Employees: 998

Year Founded: 1906 Estab. in Alaska: 1954 Alaska Employees: 910 Worldwide Employees: 2,800

Year Founded: 1948 Estab. in Alaska: 1948

Worldwide Employees: 900

Year Founded: 1956 Estab. in Alaska: 1956 Alaska Employees: 850

Christine Resler, GeoMarket Mgr. INDUSTRIAL SERVICES

Worldwide Employees: 1,143

Alaska Employees: 900

Bob Hajdukovich, CEO TRANSPORTATION

Alaska Employees: 1,143

Alaska Employees: 998

Rex Wilhelm, Vice Chairman RETAIL/WHOLESALE TRADE

Estab. in Alaska: 1972

Worldwide Employees: 1,100

TRANSPORTATION

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Year Founded: 1972

Schlumberger - Houston, TX | NYSE: SLB

Worldwide Employees: 100,000

Alaska Business Monthly | April 2016 www.akbizmag.com

ALASKA BUSINESS MONTHLY | 2016 CORPORATE 100 | DIRECTORY

Fargo Bank N.A. 21 Wells 301 W. Northern Lights Blvd.

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Anchorage, AK 99503 907-265-2730 Joe Everhart, Alaska Region President FINANCIAL SERVICES

Pipeline 22 Alyeska Service Co.

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PO Box 196660, MS 542 Anchorage, AK 99519-6660 907-787-8700 Thomas Barrett, President

wellsfargoworks.com | twitter.com/DavidJKennedyWF Diversified financial services company, providing businesses of all sizes with checking and savings products, insurance, retirement planning, payroll services, merchant services, loans, credit cards and online tips and tools for building a successful business at wellsfargoworks.com.

Wells Fargo & Company - San Francisco, CA | NYSE: WFC alyeska-pipe.com | facebook.com/alyeskapipeline Alyeska Pipeline Service Company has operated the Trans Alaska Pipeline System since 1977, and has delivered more than 17 billion barrels of oil. Focused on safe and flawless operations and sustainability, Alyeska’s employees are working to manage the challenges of declining throughput.

OIL & GAS

Wholesale 23 Costco Corporation

#

4125 DeBarr Rd. Anchorage, AK 99508 800-774-2678 W. Craig Jelinek, CEO RETAIL/WHOLESALE TRADE

Hotels 24 Westmark several

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several, AK 99501 800-544-0970 Charlie Ball, President TRAVEL & TOURISM

Resort 25 Alyeska PO Box 249

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Girdwood, AK 99587 907-754-1111 Mark Weakland, VP/Hotel GM

costco.com | customerservice@costco.com Costco is a membership warehouse club, dedicated to bringing our members the best possible prices on quality, brand-name merchandise. With hundreds of locations worldwide, Costco provides a wide selection of merchandise, plus the convenience of specialty departments and exclusive member services.

Costco Wholesale Corporation - Issaquah, WA | NYSE: COST westmarkhotels.com | info@westmarkhotels.com Located throughout Alaska and the Yukon, Westmark Hotels feature comfortable rooms, superior service and inviting restaurants and lounges.

Carnival Corp. - Miami, FL USA | NYSE: CCL alyeskaresort.com | info@alyeskaresort.com Alyeska Resort is Alaska’s premier year-round destination. Just 40 miles from Anchorage, it’s a great base camp for summer and winter activities. Featuring the 301 room Hote Alyeska, ski resort served by 7 lifts, 7 restaurants, a full service spa, and banquet and meeting facilities.

TRAVEL & TOURISM

Alaska 26 Chugach Corporation

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3800 Centerpoint Dr., Suite 1200 Anchorage, AK 99503-4396 907-563-8866 Gabriel Kompkoff, CEO

chugach.com | communications@chugach.com Chugach provides wide-ranging services for federal, municipal and commercial clients including facilities management and maintenance, construction and engineering, technical and information technology, education and oil and gas services.

Railroad 27 Alaska Corporation PO Box 107500 Anchorage, AK 99510-7500 907-265-2300

alaskarailroad.com | corpinfo@akrr.com Freight rail transportation, passenger rail transportation, and real estate land leasing and permitting. Year-round employees 575-585; Seasonal (summer) employees 125-135; Total employees 700-720.

Bill O’Leary, President/CEO

28 SEARHC 3100 Channel Dr., Suite 300 Juneau, AK 99801 907-463-4000 Charles Clement, President/CEO HEALTH & WELLNESS

16

Alaska Employees: 800 Worldwide Employees: 265,000

Year Founded: 1970 Estab. in Alaska: 1970 Alaska Employees: 800 Worldwide Employees: 800

Year Founded: 1976 Estab. in Alaska: 1984 Alaska Employees: 800 Worldwide Employees: 205,000

Year Founded: 1987 Estab. in Alaska: 1987 Alaska Employees: 796 Worldwide Employees: 796

Year Founded: 1959 Estab. in Alaska: 1959 Alaska Employees: 750 Worldwide Employees: 750

Year Founded: 1972 Estab. in Alaska: 1972 Alaska Employees: 750

Year Founded: 1914 Estab. in Alaska: 1914 Alaska Employees: 717 Worldwide Employees: 719

TRANSPORTATION

#

Estab. in Alaska: 1916

Worldwide Employees: 5,450

NATIVE ORGANIZATION

#

Year Founded: 1852

searhc.org | facebook.com/SouthEastAlaskaRegionalHealthConsortium SouthEast Alaska Regional Health Consortium provides the highest quality health services in partnership with Native people to improve their health, prevention and awareness to the highest possible level.

We serve 18 communities throughout the S.E. Alaska archipelago.

Year Founded: 1975 Estab. in Alaska: 1975 Alaska Employees: 700 Worldwide Employees: 700

Alaska Business Monthly | April 2016 www.akbizmag.com

ALASKA BUSINESS MONTHLY | 2016 CORPORATE 100 | DIRECTORY

National 29 First Bank Alaska

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PO Box 100720 Anchorage, AK 99510-0720 907-777-4362 Betsy Lawer, Chair and President FINANCIAL SERVICES

30 Alaska Communications

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600 Telephone Ave. Anchorage, AK 99503 907-297-3000

FNBAlaska.com | marketing@FNBAlaska.com Friendly, knowledgeable Alaskans offering the convenience, service and value of a full range of deposit, lending, trust, and investment management services, online, and mobile banking. With 30 branches in 18 communities and assets of more than $3.5 billion, we believe in Alaska and have since 1922.

NYSE: FBAK alaskacommunications.com | letsbetteralaska@acsalaska.com Alaska’s leading provider of IT services, Internet, data networking and voice communications.

Regional 31 Mat-Su Medical Center

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PO Box 1687 Palmer, AK 99645 907-861-6000 John Lee, CEO HEALTH & WELLNESS

32 Kinross Fort Knox

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PO Box 73726 Fairbanks, AK 99707 907-490-2218

NYSE: ALSK matsuregional.com | a.craft@msrmc.com Mat-Su Regional Medical Center is a state-of-the-art healthcare facility; providing advanced surgical service, including robotics, the area’s only birthing center, emergency services, diagnostic imaging, a sleep lab and a convenient Urgent Care Center in Wasilla.

Community Health Systems - Nashville, TN | NYSE: CYH kinross.com | anna.atchison@kinross.com Gold producer.

Chrysler Jeep Dodge 33 Lithia Ram of Anchorage

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9600 Old Seward Highway Anchorage, AK 99515 907-868-9300

Kinross Gold Corp. - Toronto, ON Canada | NYSE: KGC lithiachrysleranchorage.com | facebook.com/LithiaMotors/ Visit Lithia Chrysler Jeep Dodge of South Anchorage for a new or used car, service repairs & maintenance, or parts.

Builders 34 Spenard Supply, Inc.

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300 E. 54th Ave., Suite 201 Anchorage, AK 99518 907-261-9105

Lithia Motors - Medford, OR | NYSE: LAD sbsalaska.com | facebook.com/SpenardBuildersSupply Provides a full line of building materials and home-improvement products to fill the needs of residential DIYers and commercial contractors.

Ed Waite, Senior VP RETAIL/WHOLESALE TRADE

Express 35 FedEx 6050 Rockwell Ave.

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Anchorage, AK 99502 800-463-3339

Builders FirstSource - Dallas, TX | NYSE: BLDR fedex.com Air cargo and express-package services.

36 Bartlett Regional Hospital

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3260 Hospital Dr. Juneau, AK 99801 907-796-8900 Chuck Bill, CEO HEALTH & WELLNESS 18

Year Founded: 1999 Estab. in Alaska: 1999

Worldwide Employees: 696

Year Founded: 1935 Estab. in Alaska: 1935 Alaska Employees: 670 Worldwide Employees: 670

Year Founded: 1995 Estab. in Alaska: 1995

Worldwide Employees: 8,000

Year Founded: 1946 Estab. in Alaska: 2001

Worldwide Employees: 8,827

Year Founded: 1952 Estab. in Alaska: 1952 Alaska Employees: 600 Worldwide Employees: 8,000

Year Founded: 1973 Estab. in Alaska: 1988 Alaska Employees: 552

Dale Shaw, Managing Dir. TRANSPORTATION

Worldwide Employees: 681

Alaska Employees: 655

Troy Jarvis, General Manager RETAIL & WHOLES TRADE

Alaska Employees: 681

Alaska Employees: 660

Eric Hill, GM MINING

Estab. in Alaska: 1922

Alaska Employees: 673

Anand Vadapalli, President/CEO TELECOMMUNICATIONS

Year Founded: 1922

FedEx Corp. - Memphis, TN | NYSE: FDX bartletthospital.org | facebook.com/BartlettRegionalHospital Emergency services; diagnostic imaging; critical care; cardiac & pulmonary rehab; speech, infusion, respiratory, occupational & physical therapy; behavioral health; birthing center; lab services; inpatient & same day surgery; critical care; comprehensive medical & surgical care.

Worldwide Employees: 165,000

Year Founded: 1885 Estab. in Alaska: 1885 Alaska Employees: 520 Worldwide Employees: 520

Alaska Business Monthly | April 2016 www.akbizmag.com

ALASKA BUSINESS MONTHLY | 2016 CORPORATE 100 | DIRECTORY

Parcel Service 37 United 6200 Lockheed Ave.

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Anchorage, AK 99502 907-249-6242 Scott DePaepe, AK Div. Mgr. TRANSPORTATION

38 AT&T 505 E. Bluff Dr.

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Anchorage, AK 99501 800-478-9000 Bob Bass, President Alaska TELECOMMUNICATIONS

Support 39 ESS Services Worldwide

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201 Post Rd. Anchorage, AK 99501 907-865-9818 Larry Weihs, COO INDUSTRIAL SERVICES

Bears 40 Three Alaska, Inc.

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445 N. Pittman Rd., Suite B Wasilla, AK 99623 907-357-4311

ups.com UPS is a global company with one of the most recognized and admired brands in the world. We have become the world’s largest package delivery company and a leading global provider of specialized transportation and logistics services.

United Parcel Service - Atlanta, GA | NYSE: UPS att.com, facebook.com/ATT | @ATTCustomerCare AT&T helps millions connect with leading entertainment, pay TV, mobile, high speed Internet and voice services. We help businesses worldwide with our mobility and secure cloud solutions. AT&T’s U.S. wireless network offers the nation’s strongest LTE signal and the most reliable 4G LTE network.

AT&T - Dallas, TX | NYSE: T essalaska.com | lweihs@ess-worldwide.com Restaurants, lounges, and espresso operations. Catering services: small to large remote site facilities for short- or long-term projects, including offshore drilling platforms, employee staffing and leasing, in-flight services, governmental agency support services and Impressions Catering.

Compass Group - Chertsey, UK threebearsalaska.com | steve@threebearsalaska.com Retail grocery, general merchandise, sporting goods (hunting, fishing & camping), pharmacy, package stores (beer, wine & spirits), and fuel.

201 Arctic Slope Ave. Anchorage, AK 99518 907-777-5505 Bruce Harland, VP TRANSPORTATION

42 PenAir 6100 Boeing Ave.

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Anchorage, AK 99502 800-446-4228 Danny Seybert, CEO

crowley.com Crowley Solutions was formed in 2010 to provide increased support services to the oil and gas industry including turnkey project management solutions, ocean towing, heavy lift transportation services, spill response services, tank farm and fuel management services.

Crowley Maritme Corporation - Jacksonville, FL penair.com | missy.roberts@penair.com Passenger Transportation throughout SW Alaska, with hubs in the lower 48 in Portland, OR and Boston, MA. Also specializing in Charters and Freight service.

Alaska43 Teck Red Dog Mine 3105 Lakeshore Dr., Bldg. A, Suite 101 | Anchorage, AK 99517 907-754-5116

reddogalaska.com | reddog.info@teck.com One of the world’s largest producers of zinc concentrates.

Odom 44 The Corporation

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240 W. First Ave. Anchorage, AK 99501 907-272-8511

Teck Resources Limited - Vancouver, BC Canada | NYSE: TCK odomcorp.com Licensed Wholesale Alcoholic Beverage Distributor. Franchised Soft Drink Distributor.

20

Estab. in Alaska: 1971 Alaska Employees: 500 Worldwide Employees: 243,620

Year Founded: 1986 Estab. in Alaska: 1986 Alaska Employees: 500 Worldwide Employees: 500,000

Year Founded: 1980 Estab. in Alaska: 1980

Year Founded: 1892 Estab. in Alaska: 1953 Alaska Employees: 450 Worldwide Employees: 5,500

Year Founded: 1955 Estab. in Alaska: 1955 Alaska Employees: 450

Year Founded: 1989 Estab. in Alaska: 1989

Worldwide Employees: 12,000

Year Founded: 1934 Estab. in Alaska: 1934 Alaska Employees: 433

John Odom, President/CEO RETAIL/WHOLESALE TRADE

Year Founded: 1876

Alaska Employees: 450

Henri Letient, GM MINING

Worldwide Employees: 435,000

Worldwide Employees: 550

TRANSPORTATION

#

Alaska Employees: 505

Worldwide Employees: 504

RETAIL/WHOLESALE TRADE

41 Crowley Solutions, Inc.

Estab. in Alaska: 1985

Alaska Employees: 457

David Weisz, President/CEO

#

Year Founded: 1907

The Odom Corporation - Bellevue, WA

Worldwide Employees: 1,118

Alaska Business Monthly | April 2016 www.akbizmag.com

Of All the Things We Build, Relationships Are the Most Important Lots of firms talk about providing a more comprehensive, boutique style service. It's the same thought we had...30 years ago. During that time we have built one of the largest independent Registered Investment Advisors providing a comprehensive set of financial services to affluent individuals. We provide unbiased, personal, attentive and transparent service to those we have the honor of calling our clients.

We are Cornerstone Advisors and we are wealth and life builders.

BuildB eyo nd.com l info@ b uil db eyon d .co m l ( 8 8 8 ) 762-14 42

ALASKA BUSINESS MONTHLY | 2016 CORPORATE 100 | DIRECTORY

Inupiat 45 Ukpeagvik Corporation (UIC)

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PO Box 890 Barrow, AK 99723 907-852-4460 Anthony Edwardsen, President/CEO

uicalaska.com | info@uicalaska.com UIC provides services to clients in a variety of industries, including operations in Barrow, construction, architecture and engineering, regulatory consulting, information technology, marine operations, logistics, and maintenance and manufacturing.

46 Carlile 1800 E. First Ave. Anchorage, AK 99501-1833 907-276-7797

carlile.biz Transportation and logistics company offering multi-model trucking as well as project logistic services across Alaska and North America.

Greens Creek 47 Hecla Mining Co.

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PO Box 32199 Juneau, AK 99803 907-789-8114

Saltchuk Resources, Inc. - Seattle, WA hecla-mining.com Hecla’s 100%-owned and operated Greens Creek mine in southeast Alaska is one of the largest and lowest-cost primary silver mines in the world.

Scott Hartman, GM MINING

Captain Cook 48 Hotel 939 W. Fifth Ave.

#

Anchorage, AK 99501-2019 907-276-6000 Walter Hickel Jr., Chairman/CEO

Hecla Mining Co. - Coer d’Alene, ID captaincook.com | info@captaincook.com The Hotel Captain Cook is a 546 room luxury hotel with 4 restaurants and an athletic club. Centrally located in Downtown Anchorage, Alaska, we are the last large family owned hotel in Anchorage, and with our sister hotel, the Voyager inn are the only two members of Preferred Hotels in Alaska.

TRAVEL & TOURISM

Union 1 49 Credit 1941 Abbott Rd.

#

Anchorage, AK 99507 907-339-9485 Tom Newins, President/CEO

cu1.org | service@cu1.org Credit Union 1 values responsible, accessible lending as one of our most vital community services. We’re proud to offer versatile accounts and quality loans to match our members’ unique needs and lifestyle, and our many electronic services represent the cutting edge of personal money management.

FINANCIAL SERVICES

Stevens 50 Ted Anchorage Int’l Airport

#

PO Box 196960 Anchorage, AK 99519-6960 907-266-2119

anchorageairport.com | dot.aia.ancinfo@alaska.gov World class cargo airport, largest passenger airport in Alaska and the world’s busiest float-plane base.

184 E. 53rd Ave. Anchorage, AK 99518-1222 907-344-1577

udelhoven.com | rfrontdesk@udelhoven.com Oilfield Services, Construction Management, Electrical & Mechanical Construction.

Palmer, AK 99645 907-745-3211 Michael Burke, CEO TELECOMMUNICATIONS 22

Year Founded: 1988 Estab. in Alaska: 1988 Alaska Employees: 415 Worldwide Employees: -

Year Founded: 1964 Estab. in Alaska: 1965 Alaska Employees: 400 Worldwide Employees: 400

Year Founded: 1952 Estab. in Alaska: 1952 Alaska Employees: 384 Worldwide Employees: 390

Year Founded: 1951 Estab. in Alaska: 1951

Year Founded: 1970 Estab. in Alaska: 1970

Worldwide Employees: 576

INDUSTRIAL SERVICES

Inc. 52 MTA, 1740 S. Chugach St.

Worldwide Employees: 600

Alaska Employees: 371

Jim Udelhoven, CEO

#

Estab. in Alaska: 1980

Worldwide Employees: 383

TRANSPORTATION

Oilfield 51 Udelhoven System Services

Year Founded: 1980

Alaska Employees: 383

John Parrott, Airport Mgr.

#

Alaska Employees: 420

Alaska Employees: 420

Terry Howard, President TRANSPORTATION

Estab. in Alaska: 1973

Worldwide Employees: 2,835

NATIVE ORGANIZATION

#

Year Founded: 1973

mtasolutions.com | facebook.com/MatanuskaTelephone MTA, an Alaskan owned company, delivers advanced communications products using state of the art technology: Broadband/High Speed Internet, IT/Business Solutions, HD digital TV, Local & LD, Online Directory, and Directory & Television advertising. The only company to offer Rolling Gigs.

Year Founded: 1953 Estab. in Alaska: 1953 Alaska Employees: 354 Worldwide Employees: 354

Alaska Business Monthly | April 2016 www.akbizmag.com

Commercial Insurance Employee Benefits Personal Insurance Risk Management Surety

ALASKA BUSINESS MONTHLY | 2016 CORPORATE 100 | DIRECTORY

Straits 53 Bering Native Corporation

#

4600 DeBarr Rd., Suite 200 Anchorage, AK 99508 907-563-3788 Gail R. Schubert, President/CEO

beringstraits.com | media@beringstraits.com Bering Straits was established by ANCSA in 1971. It is owned by more than 7,100 Alaska Native shareholders and actively pursues responsible development of resources and other business opportunities. The Company serves the federal government and commercial customers throughout the BSNC region.

NATIVE ORGANIZATION

Occupational 54 Beacon Health & Safety Services

#

800 Cordova St. Anchorage, AK 99501 907-222-7612

beaconohss.com | info@beaconohss.com On-site medical staffing, safety staffing, full service third-party administration drug and alcohol testing, occupational medicine, and work related injury and illness management, and training.

Holly Hylen, President/CEO

Alaska, Inc. 55 Coeur 3031 Clinton Dr., Suite 202 Juneau, AK 99801 907-523-3300 Wayne Zigarlick, VP/GM MINING

Corporation 56 Chenega 3000 C St., Suite 301

#

Anchorage, AK 99503-3975 907-277-5706 Charles W. Totemoff, President & CEO

coeur.com | jtrigg@coeur.com The Kensington underground gold mine and associated milling facilities are located in the Berners Bay Mining District on the east side of Lynn Canal about 45 miles northwest of Juneau, Alaska. The project is owned and operated by Coeur Alaska, Inc., a wholly owned subsidiary of Coeur Mining.

Coeur Mining - Chicago, IL | NYSE: CDE chenega.com | info@chenega.com Professional services contracting for the federal government, including technical & installation services, military, intelligence & operations support, environmental, healthcare & facilities mgt., information technology, electrical, telecommunications and power generation services.

NATIVE ORGANIZATION

Inc. 57 Ahtna, PO Box 649

#

Glennallen, AK 99588 907-822-3476 Michelle Anderson, President

ahtna-inc.com | news@ahtna.net Ahtna’s participates in diverse industry sectors including construction and environmental, facilities management, engineering, government contracting, professional/support services, real estate, and oil and gas.

Metal 58 Sumitomo Mining Pogo LLC PO Box 145 Delta Junction, AK 99737 907-895-2841

pogominealaska.com Pogo continues to operate as the top producing underground gold mine in Alaska. The company invests heavily in exploration and is working to extend the life of the mine.

Chris Kennedy, GM MINING

Electric 59 Chugach Association, Inc.

#

5601 Electron Dr. Anchorage, AK 99518 907-563-7494

Sumitomo Corp. - Tokyo, Japan chugachelectric.com | info@chugachelectric.com Electric utility.

301 W. Northern Lights Blvd., Suite 300 | Anchorage, AK 99503 907-278-4400

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

24

Estab. in Alaska: 1999 Alaska Employees: 329

Year Founded: 1987 Estab. in Alaska: 1987 Alaska Employees: 328 Worldwide Employees: 2,100

Year Founded: 1974 Estab. in Alaska: 1974 Alaska Employees: 326 Worldwide Employees: 5,566

Year Founded: 1972 Estab. in Alaska: 1972 Alaska Employees: 323

Year Founded: 2005 Estab. in Alaska: 2005 Alaska Employees: 320 Worldwide Employees: 320

Year Founded: 1948 Estab. in Alaska: 1948

Year Founded: 1974 Estab. in Alaska: 1974 Alaska Employees: 300

Robert Stinson, Sr. VP CONSTRUCTION

Year Founded: 1999

Worldwide Employees: 301

UTILITY

Gregory 60 Price International

Worldwide Employees: 1,348

Alaska Employees: 301

Bradley Evans, CEO

#

Alaska Employees: 329

Worldwide Employees: 1,325

NATIVE ORGANIZATION

#

Estab. in Alaska: 1972

Worldwide Employees: 351

HEALTH & WELLNESS

#

Year Founded: 1972

Quanta Services - Houston, TX | NYSE: PWR

Worldwide Employees: 1,500

Alaska Business Monthly | April 2016 www.akbizmag.com

Shipping with aloha.

Now serving a port near you.

At Matson, we’re bringing our on-time performance and award-winning customer service to Alaska and Tacoma. Our fleet is equipped with computerized tracking, supported by experienced teams in all specialties, including transporting fragile and refrigerated items. If you’re looking for a solid U.S. shipping company with over 130 years of experience in the Pacific, including Hawaii, Guam, Micronesia and China, we’re here for you.

For more information, call our Alaska Support Center at 1-877-678-SHIP or visit matson.com/Alaska

ALASKA BUSINESS MONTHLY | 2016 CORPORATE 100 | DIRECTORY

Bank 61 Northrim PO Box 241489

#

Anchorage, AK 99524 907-562-0062 Joseph Beedle, Chairman FINANCIAL SERVICES

Construction, Inc. 62 Cruz 7000 E. Palmer Wasilla Hwy.

#

Palmer , AK 99645 907-746-3144

northrim.com | marketing@nrim.com

Year Founded: 1990

Northrim Bank is an Alaskan-based community bank, headquartered in Anchorage with 14 branches statewide and serving 90% of Alaska’s population. Northrim is committed to providing Customer First Service to businesses, professionals, and individual Alaskans.

cruzconstruct.com | info@cruzconstruct.com

Year Founded: 1981

Experts in resource development and heavy civil construction.

501 W. Int’l Airport Rd., Suite 1A Anchorage, AK 99518 907-565-6100 Dan Afrasiabi, President/CEO

Worldwide Employees: 450

genevawoods.com | info@genevawoods.com

Year Founded: 1977

With locations in Alaska and the Pacific Northwest, our infusion team provides IV therapy both in our infusion suites, and patients’ homes.

Our GO Tech team delivers compliance packaged medications and Home medical supplies to patient homes and care facilities. We help you stay healthy at home.

HEALTH & WELLNESS

Air Cargo 64 Everts PO Box 61680

#

Fairbanks, AK 99706 907-450-2300 Robert Everts, President/CEO TRANSPORTATION

Estab. in Alaska: 1981 Alaska Employees: 278

CONSTRUCTION

Woods 63 Geneva Pharmacy, Inc.

Alaska Employees: 290 Worldwide Employees: 300

NYSE: NRIM

Dave Cruz, President

#

Estab. in Alaska: 1990

evertsair.com | info@evertsair.com

Estab. in Alaska: 1977 Alaska Employees: 269 Worldwide Employees: 588

Year Founded: 1995

Everts Air Cargo is an Alaskan owned and operated air carrier that provides scheduled freight service to 12 rural communities in Alaska and charter service throughout Central and North America.

Estab. in Alaska: 1995 Alaska Employees: 265 Worldwide Employees: 255

Tatonduk Outfitters Ltd. - Fairbanks, AK USA

“We’re bringing in BDO. The partner’s already on it.”

People who know, know BDO.SM

BDO provides assurance, tax, financial advisory and consulting services to a wide range of publicly traded and privately held companies. We offer a sophisticated array of services and the global capabilities of the world’s fifth largest accounting and consulting network, combined with the personal attention of experienced professionals.

BDO 3601 C Street, Suite 600, Anchorage, AK 99503 907-278-8878 Accountants and Consultants www.bdo.com © 2014 BDO USA, LLP. All rights reserved.

26

Alaska Business Monthly | April 2016 www.akbizmag.com

PO Box 29 Barrow, AK 99723-0029 907-852-4611

arcticslope.org

Year Founded: 1964

24-hour emergency room, outpatient and inpatient service, lab, X-ray, ultrasound and dental services.

Alaska Employees: 260

Richard Hall, Hospital Administrator HEALTH & WELLNESS

Machinery 66 N6450CArctic Blvd.

#

Anchorage, AK 99518 907-786-7500 John Harnish, President/CEO INDUSTRIAL SERVICES

67 CONAM Construction Co.

#

301 W. Northern Lights Blvd., Suite 300 | Anchorage, AK 99503 907-278-6600

Worldwide Employees: 260

Arctic Slope Native Association - Barrow, AK ncmachinery.com | sfield@ncmachinery.com

Year Founded: 1776

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

Inc. 68 Matson, 1717 Tidewater Rd.

#

Anchorage, AK 99501-1036 907-274-2671 Kenny Gill, VP, Alaska TRANSPORTATION

Estab. in Alaska: 1926 Alaska Employees: 257 Worldwide Employees: 1,192

Harnish Group Inc. - Tukwilla, WA conamco.com

Year Founded: 1984

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

Estab. in Alaska: 1984 Alaska Employees: 250

Dale Kissee, President CONSTRUCTION

Estab. in Alaska: 1964

Worldwide Employees: 250

Quanta Services - Houston, TX | NYSE: PWR matson.com

Year Founded: 1882

Containership service between Tacoma, WA, and Anchorage, Kodiak, and Dutch Harbor, AK. Delivery services to the Alaska Railbelt.

Connecting carrier service to other water, air, and land carriers.

Estab. in Alaska: 1964 Alaska Employees: 245 Worldwide Employees: 2,000

Matson, Inc. - Honolulu, HI | NYSE: MATX

Persistence. Perspective.

Position.

Greens Creek is one of the world’s largest and lowestcost primary silver mines, and it continues to drive Hecla’s strong, consistent production performance.

Greens Creek has produced approximately 200 million ounces of silver and 1.5 million ounces of gold since its startup in 1989.

These are the values that drive Hecla forward.

Persistence, perspective, and position are the characteristics that will ensure continued longevity and will enable us to grow, evolve, and prosper even more in the next century. www.akbizmag.com

www.hecla-mining.com

April 2016 | Alaska Business Monthly

27

ALASKA BUSINESS MONTHLY | 2016 CORPORATE 100 | DIRECTORY

Simmonds 65 Samuel Memorial Hospital

#

ALASKA BUSINESS MONTHLY | 2016 CORPORATE 100 | DIRECTORY

69 Goldbelt, Incorporated

#

3025 Clinton Dr. | Juneau, AK 99801 907-790-4990

goldbelt.com | media@goldbelt.com Tourism, hospitality, transportation, security services, 8(a) government contracting.

Worldwide Employees: 1,151

NATIVE ORGANIZATION

70 Municipal Light & Power 1200 E. First Ave. Anchorage, AK 99501 907-279-7671 Mark Johnston, GM

mlandp.com | askmlp@muni.org ML&P provides safe, affordable and reliable electric service to 30,000+ residential & commercial customers in Anchorage, including the downtown & university-medical districts and JBER. @MLandP or www.facebook.com/mlandp

Supply 71 Advanced Chain International LLC 3201 C St., Suite 308 Anchorage, AK 99503 907-345-2724

ascillc.com | sales@ascillc.com Supply chain management specializing in asset intensive resource industries.

1300 E. Fifth Ave. Anchorage, AK 99501 907-265-7535 Diana Pfeiffer, President RETAIL/WHOLESALE TRADE

28

Alaska Employees: 234

Year Founded: 1999 Estab. in Alaska: 1999

Worldwide Employees: 255

INDUSTRIAL SERVICES

Sales 72 Alaska and Service

Estab. in Alaska: 1932

Alaska Employees: 230

Scott Hawkins, Pres & CEO

#

Year Founded: 1932

Worldwide Employees: 234

UTILITY

#

Estab. in Alaska: 1974 Alaska Employees: 235

Elliott Wimberly, Interim President/CEO

#

Year Founded: 1974

aksales.com | richardd@aksales.com Full Line General Motors Automobile and Truck lines (Chevrolet, Buick, GMC, & Cadillac) with GM Parts and Service.

Year Founded: 1944 Estab. in Alaska: 1944 Alaska Employees: 220 Worldwide Employees: 220

Alaska Business Monthly | April 2016 www.akbizmag.com

PO Box 190288 Anchorage, AK 99519 907-277-5551 Jared Green, President UTILITY

74 AECOM 700 G St., Suite 500

#

Anchorage, AK 99501 907-562-3366 Joe Hegna, Alaska Operations Manager

enstarnaturalgas.com | info@enstarnaturalgas.com Alaskans have relied on ENSTAR to serve their homes and businesses with clean burning and efficient natural gas for 54 years. ENSTAR is a regulated public utility that delivers natural gas to over 140,000 residential, commercial & industrial customers in and around Southcentral.

Aviation 75 Grant 4451 Aircraft Dr. Anchorage, AK 99502 888-359-4726 Bruce McGlasson, President

aecom.com

Inc. 76 Colville, Pouch 340012 Prudhoe Bay, AK 99734 907-659-3198 Eric Helzer, President/CEO

flygrant.com | res@flygrant.com

Estab. in Alaska: 1948 Alaska Employees: 200 Worldwide Employees: 85,000

Year Founded: 1971

Scheduled commuter air carrier that provides scheduled passenger, cargo, mail and freight services to most villages throughout Alaska.

Bethel hub air ambulance services, plus 32 aircraft fleet: Cessna 207, 208 Grand Caravans, Piper Chieftain Navajos, Beechcraft 200 King Airs and GippsAero GA8.

colvilleinc.com | info@colvilleinc.com

Estab. in Alaska: 1971 Alaska Employees: 200 Worldwide Employees: 200

Year Founded: 1981

Colville’s group of oilfield companies provide a full compliment of Arctic Logistics capabilities. Our services include fuel, aviation, waste management, transport, industrial supply and camp services.

INDUSTRIAL SERVICES

Alaska Employees: 220

Year Founded: 1904

AECOM Alaska is a team of over 200 engineers, scientists, planners & support staff providing arctic-smart engineering & environmental services for the complete project life-cycle from permitting for air, water, soils & solid waste, to planning, design & construction through production & site closure

TRANSPORTATION

#

Estab. in Alaska: 1961

Worldwide Employees: 220

AltaGas Ltd. - Calgary, AB Canada | NYSE: ALA

INDUSTRIAL SERVICES

#

Year Founded: 1961

Estab. in Alaska: 1981 Alaska Employees: 200 Worldwide Employees: 200

Only one company puts it all together.

From permitting to production, ASRC Energy Services has the right team for the job.

www.asrcenergy.com Engineering l Fabrication & Construction l Pipeline Construction l Marine Services Operations & Maintenance l Response Operations l Exploration, Drilling Support & Geosciences Regulatory & Technical Services l Quality, Health, Safety, Environmental & Training www.akbizmag.com

April 2016 | Alaska Business Monthly

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ALASKA BUSINESS MONTHLY | 2016 CORPORATE 100 | DIRECTORY

73 ENSTAR Natural Gas Co.

#

ALASKA BUSINESS MONTHLY | 2016 CORPORATE 100 | DIRECTORY

77 Microcom 129 W. 53rd Ave.

microcom.tv | jbeiser@microcom.tv

#

Anchorage, AK 99518-2353 907-264-0007

Worldwide Employees: 250

TELECOMMUNICATIONS

Choice, Inc. 78 Builders 351 E. 104th Ave.

#

Anchorage, AK 99515 907-522-3214

builderschoice.us.com | sandi@builderschoice.us.com

Year Founded: 1996

Manufacturer of modular buildings, wood and steel floor and roof trusses, full service lumber yard.

Estab. in Alaska: 1996 Alaska Employees: 200

Mark Larson, President

Worldwide Employees: 250

MANUFACTURING

Electric 79 Matanuska Association, Inc.

#

163 E. Industrial Way Palmer, AK 99645 907-761-9300 Tony Izzo, General Manager

mea.coop | facebook.com/matanuska.electric

80 Sourdough Express, Inc.

Year Founded: 1941

A member-owned electric cooperative that serves over 50,000 members across more than 4,200 miles of power lines in the Mat-Su and Eagle River-Chugiak areas. MEA’s mission is to ensure that our members have reliable, sustainable and affordable electricity.

Estab. in Alaska: 1941 Alaska Employees: 190 Worldwide Employees: 190

UTILITY sourdoughexpress.com | sourdoughtransfer.com

#

Year Founded: 1898

Freight-transportation services, moving and storage services. Steel Connex Container Sales/Lease.

600 Driveways St. Fairbanks, AK 99701 907-452-1181

Estab. in Alaska: 1902 Alaska Employees: 186

Jeff Gregory, President/CEO

Worldwide Employees: 186

TRANSPORTATION

r! a e Y 29

Estab. in Alaska: 1984 Alaska Employees: 200

Sandra Blinstrubas, President

th

Year Founded: 1984

Satellite communications, satellite delivered Internet, television and telephone communications.

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For more information or to ask about sponsorship opportunities please call (907) 344-0101 or fteo@ja-alaska.org 30

Alaska Business Monthly | April 2016 www.akbizmag.com

Ketchikan, AK 99901 907-228-5302 Adam Beck, President INDUSTRIAL SERVICES

82 ExxonMobil PO Box 196601

#

Anchorage, AK 99519 907-561-5331 Cory Quarles, AK Production Mgr. OIL & GAS

83 Usibelli Coal Mine, Inc.

#

PO Box 1000 Healy, AK 99743 907-452-2625

vigoralaska | info@akship.com Vigor is the largest marine industrial service company in the AK/PNW Region focused on shipbuilding and repair. Alaska operations include AIDEA’s Ketchikan Shipyard and the Seward Shipyard. Our mobile workforce travels throughout Alaska providing marine and shore side businesses rapid response.

exxonmobil.com ExxonMobil is the largest holder of discovered gas resources on the North Slope and the largest interest owner of the Prudhoe Bay unit.

The company is currently constructing the Point Thomson Project on the North Slope, a natural gas condensate development expected to begin production in 2016.

300 Alimaq Dr. Kodiak , AK 99615 907-486-6014 Greg Hambright, President/CEO NATIVE ORGANIZATION

www.akbizmag.com

Alaska Employees: 185

Year Founded: 1870 Estab. in Alaska: 1954 Alaska Employees: 168 Worldwide Employees: 75,000

Exxon Mobil Corporation - Irving, TX | NYSE: XOM usibelli.com | info@usibelli.com

Year Founded: 1943

Coal Mine and affiliate companies.

Estab. in Alaska: 1943 Alaska Employees: 155 Worldwide Employees: 190

MINING

Native 84 Afognak Corporation / Alutiiq LLC

Estab. in Alaska: 1994

Worldwide Employees: 2,500

Vigor Industrial - Portland, OR

Joseph E. Usibelli Jr., President

#

Year Founded: 1994

afognak.com | info@alutiiq.com

Year Founded: 1977

Afognak Native Corporation, Alutiiq, LLC and its subsidiaries operate government and commercial contracts in the following sectors: leasing, security services, IT, logistics/operations/maintenance, youth services, and timber services.

Estab. in Alaska: 1977 Alaska Employees: 155 Worldwide Employees: 4,112

April 2016 | Alaska Business Monthly

31

ALASKA BUSINESS MONTHLY | 2016 CORPORATE 100 | DIRECTORY

Alaska 81 Vigor 3801 Tongass Ave.

#

ALASKA BUSINESS MONTHLY | 2016 CORPORATE 100 | DIRECTORY

85 Era Helicopters LLC

#

6160 Carl Brady Dr., Hangar 2 Anchorage, AK 99502 907-550-8600 Elliott Neal, VP AK TRANSPORTATION

86 Pruhs Construction

#

2193 Viking Dr. Anchorage, AK 99501 907-279-1020

erahelicopters.com Founded in Alaska in 1948, Era not only serves the oil and gas industry in Alaska, but provides services for state and government business, executive charter services, flight-seeing tours, environmental surveys, utility and construction work.

Era Group Inc. - Houston, TX | NYSE: ERA pruhscorp.com | dana@pruhscorp.com Heavy civil contractor, roads, airports, site work, underground utilities, industrial.

5025 Van Buren St. Anchorage, AK 99517 907-248-5548 Ron Moore, AK Sales Manager TRANSPORTATION

88 Olgoonik Corporation

#

3201 C St., Suite 700 Anchorage, AK 99503 907-562-8728 Hugh Patkotak, Sr. , President/CEO

Alaska Employees: 150 Worldwide Employees: 1,000

Year Founded: 1958 Estab. in Alaska: 1958

Worldwide Employees: 150

CONSTRUCTION

87 American Fast Freight, Inc.

Estab. in Alaska: 1948

Alaska Employees: 150

Dana Pruhs, CEO

#

Year Founded: 1948

americanfast.com | alaska@americanfast.com Ocean freight forwarding, freight consolidation of all kinds, LTL/ LCL, full loads & single shipments, temperature protected, dry vans, specialized equipment, heavy haul, project logistics, barge, steamship, intra-state trucking, warehousing, distribution, household goods, military shipments & more!

AFF, Inc. - Fife, WA olgoonik.com | communications@olgoonik.com Worldwide Government Contracting and Commercial Services: Construction, Oilfield and Science Program Support, Logistics, Environmental Remediation, Facility Operations and Maintenance, Professional Administrative Support, and Security.

NATIVE ORGANIZATION

Year Founded: 1984 Estab. in Alaska: 1984 Alaska Employees: 145 Worldwide Employees: 375

Year Founded: 1973 Estab. in Alaska: 1973 Alaska Employees: 142 Worldwide Employees: 1,077

People are our business

At Chugach Alaska Corporation, we believe our traditional values will guide our future success. For our shareholders and for our communities. www.chugach.com 32

Alaska Business Monthly | April 2016 www.akbizmag.com

3977 Lake St. Homer, AK 99603 907-235-8551 Bradley Janorschke, GM

homerelectric.com | contact_us@homerelectric.com Homer Electric Association is a member-owned electric cooperative serving over 22,892 members on the western Kenai Peninsula from Soldotna, Kenai, Homer and remote communities across Kachemak Bay.

Valley 90 Matanuska Federal Credit Union 1020 S. Bailey St. Palmer, AK 99645-6924 907-745-4891

mvfcu.coop | facebook.com/mvfcu.coop

2040 E. 79th Ave. Anchorage, AK 99501 253-395-7726 Tom Souply, President TRANSPORTATION

Native 92 Bethel Corporation

#

PO Box 719 Bethel, AK 99559 907-543-2124 Anastasia Hoffman, President/CEO

Estab. in Alaska: 1948 Alaska Employees: 135 Worldwide Employees: 141

FINANCIAL SERVICES

Alaska 91 Span Transportation, Inc.

Alaska Employees: 137

Year Founded: 1948

Building better financial futures for people who live, work or worship in the Mat-Su Borough or Anchorage Municipality. MVFCU offers a full range of financial services to all eligible members.

Al Strawn, CEO

#

Estab. in Alaska: 1945

Worldwide Employees: 137

UTILITY

#

Year Founded: 1945

spanalaska.com | billm@spanalaska.com

Year Founded: 1978

Freight transportation services to and from Alaska, less-than-truckload and truckload. Steamship and barge service to Railbelt area of Alaska.

Barge service to Juneau and Southeast Alaska. Overnight service from Anchorage to Fairbanks and the Kenai Peninsula.

Alaska Employees: 125 Worldwide Employees: 250

Evergreen Pacific Partners - Seattle, WA bethelnativecorp.org | ahoffman@bncak.com

Year Founded: 1973

Bethel’s companies engage in many diverse lines of business including government contracting, construction, logistical support, environmental remediation and commercial real estate, with offices in Bethel, Anchorage and the Lower 48.

NATIVE ORGANIZATION

Estab. in Alaska: 1978

Estab. in Alaska: 1973 Alaska Employees: 120 Worldwide Employees: 122

NOT JUST BIGGER. EVEN BETTER. THE POWER OF TWO Span Alaska has acquired Pacific Alaska Freightways, and that means more warehouses, more equipment, and more manpower dedicated to shipping to, from, and within Alaska.

Span Alaska now ships more freight than any other carrier to Alaska. But it’s not just about size. Expanded services, new hubs, and broader expertise mean we can serve you even better. And that’s always our goal.

Shipping to Alaska?

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1.800.257.7726 • www.spanalaska.com April 2016 | Alaska Business Monthly

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ALASKA BUSINESS MONTHLY | 2016 CORPORATE 100 | DIRECTORY

Electric 89 Homer Association, Inc.

#

ALASKA BUSINESS MONTHLY | 2016 CORPORATE 100 | DIRECTORY

93

#

Watterson Construction Co. 6500 Interstate Cir. Anchorage, AK 99518 907-563-7441 Bill Watterson, President

wattersonconstruction.com | info@wattersonsconstruction.com Kodiak High School; Nuka Building for Southcentral Foundation; Mech/Elec Bldg - Ft. Greely; AVTEC Additon - Seward; Rabbit Creek and Airport Heights School Renovations/Additions; Irving Repurposing - UAF. Specializing in Design/Build projects.

94

Alcan Electrical & Engineering, Inc. 6670 Arctic Spur Rd. Anchorage, AK 99518 907-563-3787

alcanelectric.com | sbringmann@alcanelectric.com Electrical & Telecommunications, Security, CCTV, Outside Line Construction, Oil Production Modules, Hazardous Electrical Installation, and 508A Control Panel Fabrication.

Construction Machinery Industrial 5400 Homer Dr. Anchorage, AK 99518 907-563-3822

cmiak.com | o.prestwick@cmiak.com Construction and mining equipment sales, rentals, service, and parts.

Franz Bakery 2248 Spenard Rd. Anchorage, AK 99503 907-375-8800 Larry Brandt, GM Alaska Division MANUFACTURING

34

Year Founded: 1985 Estab. in Alaska: 1985

Worldwide Employees: 110

INDUSTRIAL SERVICES

96

Estab. in Alaska: 1971

Alaska Employees: 110

Ken Gerondale, President/CEO

#

Year Founded: 1971

Worldwide Employees: 110

INDUSTRIAL SERVICES

95

Alaska Employees: 119

Alaska Employees: 110

Scott Bringmann, President

#

Estab. in Alaska: 1981

Worldwide Employees: 120

CONSTRUCTION

#

Year Founded: 1981

franzbakery.com | facebook.com/franzbakery Franz Bakery is a fourth generation family owned baking company based out of Portland, Oregon. Since 1906 Franz has been providing communities with fresh bread, buns, bagels and cookies, using the highest quality ingredients. Today, we deliver fresh baked goods daily to our customers.

Year Founded: 1906 Estab. in Alaska: 2013 Alaska Employees: 110 Worldwide Employees: 4,000

Alaska Business Monthly | April 2016 www.akbizmag.com

BDO USA, LLP

bdo.com | landersen@bdo.com

3601 C St., Suite 600 Anchorage, AK 99503 907-278-8878

Year Founded: 1910

Tax planning and prep, auditing, compliance audits, financial statement prep, business valuation, litigation support, personal financial planning, estate planning, fraud and forensic accounting, business consulting, audits of medicaid providers, internal controls and Sarbanes Oxley compliance.

James Hasle, Office Mng. Ptnr.

FINANCIAL SERVICES

98

KeyBank

#

key.com

101 W. Benson Blvd., Suite 400 Anchorage, AK 99503 907-562-6100 Lori McCaffrey, Alaska Market Pesident

99

REI

REI.com | @REI

1200 W. Northern Lights Blvd., Suite A Anchorage, AK 99503 907-272-4565

Alaska Employees: 105 Worldwide Employees: 13,590

Alaska Employees: 100 Worldwide Employees: 12,000+

offshoresystemsinc.com

Year Founded: 1983

Dock facilities in Nikiski, Dutch Harbor, and Adak servicing the oil and fishing industries. Services include dock space, warehousing, cold storage, stevedoring services, heavy equipment, and fuel.

2410 E. 88th Ave. Anchorage, AK 99507 800-733-6434

Estab. in Alaska: 1985

Estab. in Alaska: 1979

RETAIL/WHOLESALE TRADE

100 Offshore Systems, Inc.

Worldwide Employees: 5,400

Year Founded: 1938

National specialty outdoor retailer.

Jerry Stritzke, CEO and President

#

Alaska Employees: 107

Year Founded: 1825

Key provides deposit, lending, cash management and investment services to individuals and small and mid-sized businesses in 12 states under the name KeyBank National Association. Key also provides a broad range of sophisticated corporate and investment banking products.

FINANCIAL SERVICES

#

Estab. in Alaska: 1977

Jeff Savage, General Manager

Estab. in Alaska: 1983 Alaska Employees: 100 Worldwide Employees: 115

INDUSTRIAL SERVICES

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April 2016 | Alaska Business Monthly

35

ALASKA BUSINESS MONTHLY | 2016 CORPORATE 100 | DIRECTORY

97

#

Industrial Services 8.0%

Retail / Wholesale Trade 15.2%

Telecommunications 5.8%

Native Organizations 20.3%

ALASKA BUSINESS MONTHLY | 2016 CORPORATE 100 | BREAKDOWN BY INDUSTRY

Financial Services 5.6%

36

Alaska Business Monthly | April 2016 www.akbizmag.com

Oil & Gas 5.7%

ALASKA BUSINESS MONTHLY | 2016 CORPORATE 100 | BREAKDOWN BY INDUSTRY

Health & Wellness 13.6%

Construction 1.6% Transportation 14.1% Utility 1.6%

Manufacturing 0.5% Travel & Tourism 4.6%

Mining 3.4% www.akbizmag.com

April 2016 | Alaska Business Monthly

37

ALASKA BUSINESS MONTHLY | 2016 CORPORATE 100 | FACTS & FIGURES

ABM’s 2016 Corporate 100 Business Classification Native Organization Retail/Wholesale Trade Transportation Health & Wellness Industrial Services Telecommunications Oil & Gas Financial Services Travel & Tourism Mining Construction Utility Manufacturing Total Alaska Employees

Native Organization NANA Regional Corporation, Inc. 5,000 Arctic Slope Regional 4,580 Corporation Bristol Bay Native Corporation 1,359 Chugach Alaska Corporation 750 Ukpeagvik Inupiat 420 Corporation (UIC) Bering Straits Native Corporation 329 Chenega Corporation 326 Ahtna, Inc. 323 Goldbelt, Incorporated 235 Afognak Native Corporation / 155 Alutiiq LLC Olgoonik Corporation 142 Bethel Native Corporation 120 Native Organization Total 13,739

Retail/Wholesale Trade Fred Meyer 3,196 Carrs Safeway 2,800 Alaska Commercial Co. 998 Costco Wholesale Corp.

800 Lithia Chrysler Jeep Dodge Ram 655 of Anchorage Spenard Builders Supply, Inc. 600 Three Bears Alaska, Inc. 457 38

Alaska Employees 13,739 10,259 9,528 9,163 5,398 3,872 3,868 3,793 3,089 2,328 1,097 1,082 310 67,526

Percent of Corporate 100 20.3 15.2 14.1 13.6 8.0 5.7 5.7 5.6 4.6 3.4 1.6 1.6 0.5

The Odom Corporation Alaska Sales and Service REI Retail/Wholesale Trade Total

Transportation Alaska Airlines Alaska Marine Highway System Lynden, Inc. Ravn Alaska Alaska Railroad Corp.

FedEx Express United Parcel Service Crowley Solutions, Inc. PenAir Carlile Ted Stevens Anchorage Int’l Airport Everts Air Cargo Matson, Inc. Grant Aviation Sourdough Express, Inc. Era Helicopters LLC American Fast Freight, Inc. Span Alaska Transportation, Inc. Transportation Total

433 220 100 10,259

1,825 1,100 910 900 717 552 505 450 450 420 383 265 245 200 186 150 145 125 9,528

Would your company have qualified for this year’s list?

Please email surveys@akbizmag.com or call us at 907-276-4373 to be a part of the 2017 Corporate 100.

Health & Wellness Providence Health & Services Alaska The Alaska Club SEARHC Mat-Su Regional Medical Center Bartlett Regional Hospital Beacon Occupational Health & Safety Services Geneva Woods Pharmacy, Inc. Samuel Simmonds Memorial Hospital Fairbanks Memorial Hospital Health & Wellness Total

Industrial Services CH2M Schlumberger Oilfield Services ESS Support Services Worldwide Udelhoven Oilfield System Services N C Machinery Advanced Supply Chain International LLC Colville, Inc. AECOM Vigor Alaska Alcan Electrical & Engineering, Inc. Construction Machinery Industrial Offshore Systems, Inc. Industrial Services Total

Telecommunications GCI Alaska Communications AT&T MTA, Inc. Microcom Telecommunications Total

Oil & Gas BP Exploration (Alaska), Inc. ConocoPhillips Alaska, Inc. Alyeska Pipeline Service Co. ExxonMobil Oil & Gas Total

4,115 1,000 700 670 520 329 269 260 1,300 9,163

2,285 850 500 371 257 230 200 200 185 110 110 100 5,398

2,145 673 500 354 200 3,872

1,900 1,000 800 168 3,868

Alaska Business Monthly | April 2016 www.akbizmag.com

www.akbizmag.com

1,291 800 681 384 290 135 107 105 3,793

1,143 796 400 750 3,089

660 450 415 328 320 155 2,328

300 278 250 150 119 1,097

STAND

OUT

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PR

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301

SOLSTICEADVERTISING.COM

234 220 190 137 1,082

200 110 310

April 2016 | Alaska Business Monthly

39

ALASKA BUSINESS MONTHLY | 2016 CORPORATE 100 | FACTS & FIGURES

Financial Services Alaska USA Federal Credit Union Wells Fargo Bank N.A. First National Bank Alaska Credit Union 1 Northrim Bank Matanuska Valley Federal Credit Union BDO USA, LLP KeyBank Financial Services Total

Travel & Tourism Princess Alaska Lodges Westmark Hotels Hotel Captain Cook Alyeska Resort Travel & Tourism Total

Mining Kinross Fort Knox Teck Alaska-Red Dog Mine Hecla Greens Creek Mining Co. Coeur Alaska, Inc. Sumitomo Metal Mining Pogo LLC Usibelli Coal Mine, Inc. Mining Total

Construction Price Gregory International Cruz Construction, Inc. CONAM Construction Co. Pruhs Construction Watterson Construction Co. Construction Total

Utility Chugach Electric Association, Inc. Municipal Light & Power ENSTAR Natural Gas Co. Matanuska Electric Association, Inc. Homer Electric Association, Inc. Utility Total

Manufacturing Builders Choice, Inc. Franz Bakery Manufacturing Total

ALASKA BUSINESS MONTHLY | 2016 CORPORATE 100 | FACTS & FIGURES

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40

2016 Corporate 100 Alphabetical Listing Business Advanced Supply Chain International LLC AECOM Afognak Native Corporation / Alutiiq LLC Ahtna, Inc. Alaska Airlines Alaska Commercial Co. Alaska Communications Alaska Marine Highway System Alaska Railroad Corp.

Alaska Sales and Service Alaska USA Federal Credit Union Alcan Electrical & Engineering, Inc. Alyeska Pipeline Service Co. Alyeska Resort American Fast Freight, Inc. Arctic Slope Regional Corporation AT&T Bartlett Regional Hospital BDO USA, LLP Beacon Occupational Health & Safety Services Bering Straits Native Corporation Bethel Native Corporation BP Exploration (Alaska), Inc. Bristol Bay Native Corporation Builders Choice, Inc. Carlile Carrs Safeway CH2M Chenega Corporation Chugach Alaska Corporation Chugach Electric Association, Inc. Coeur Alaska, Inc. Colville, Inc. CONAM Construction Co. ConocoPhillips Alaska, Inc. Construction Machinery Industrial Costco Wholesale Corp.

Credit Union 1 Crowley Solutions, Inc. Cruz Construction, Inc. ENSTAR Natural Gas Co. Era Helicopters LLC ESS Support Services Worldwide Everts Air Cargo ExxonMobil Fairbanks Memorial Hospital FedEx Express First National Bank Alaska Franz Bakery

Rank 71 74 84 57 9 17 30 14 27 72 12 94 22 25 87 2 38 36 97 54 53 92 8 10 78 46 5 6 56 26 59 55 76 67 15 95 23 49 41 62 73 85 39 64 82 11 35 29 96

Alaska Business Monthly | April 2016 www.akbizmag.com

www.akbizmag.com

4 7 63 69 75 47 89 48 98 32 33 18 79 90 68 31 77 52 70 66 1 61 100 88 42 60 13 3 86 19 99 65 20 28 80 91 34 58 43 50 16 44 40 51 45 37 83 81 93 21 24 R

ALASKA BUSINESS MONTHLY | 2016 CORPORATE 100 | FACTS & FIGURES

Fred Meyer GCI Geneva Woods Pharmacy, Inc. Goldbelt, Incorporated Grant Aviation Hecla Greens Creek Mining Co. Homer Electric Association, Inc. Hotel Captain Cook KeyBank Kinross Fort Knox Lithia Chrysler Jeep Dodge Ram of Anchorage Lynden, Inc. Matanuska Electric Association, Inc. Matanuska Valley Federal Credit Union Matson, Inc. Mat-Su Regional Medical Center Microcom MTA, Inc. Municipal Light & Power N C Machinery NANA Regional Corporation, Inc. Northrim Bank Offshore Systems, Inc. Olgoonik Corporation PenAir Price Gregory International Princess Alaska Lodges Providence Health & Services Alaska Pruhs Construction Ravn Alaska REI Samuel Simmonds Memorial Hospital Schlumberger Oilfield Services SEARHC Sourdough Express, Inc. Span Alaska Transportation, Inc. Spenard Builders Supply, Inc. Sumitomo Metal Mining Pogo LLC Teck Alaska-Red Dog Mine Ted Stevens Anchorage Int’l Airport The Alaska Club The Odom Corporation Three Bears Alaska, Inc. Udelhoven Oilfield System Services Ukpeagvik Inupiat Corporation (UIC) United Parcel Service Usibelli Coal Mine, Inc. Vigor Alaska Watterson Construction Co. Wells Fargo Bank N.A. Westmark Hotels

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• • • • • •

Jeanne Anderson, MD Dennis Beckworth, MD Ellen Chirichella, MD Shannon Smiley, MD Carl Tahn, MD Dale Webb, MD

247 N Fireweed St, Ste B Soldotna, AK 99669

3851 Piper Street, U340 Anchorage, AK 99508

April 2016 | Alaska Business Monthly

41

Photo courtesy of CONAM Construction

ALASKA BUSINESS MONTHLY | 2016 CORPORATE 100 | COMPANY PROFILE

CONAM Construction Company

Diversification proves successful

By Tasha Anderson

C

ONAM Construction Company began operations in Alaska in 1984 primarily to support oil and gas clients with an open shop alternative performing construction services on major projects on the North Slope. According to CONAM President Dale Kissee, CONAM has diversified since then and continues to make efforts to do so. CONAM, along with its sister corporation, Price Gregory International was purchased in 2009 by Houston-based Quanta Services, Inc., an S&P 500 company (PWR).

CONAM’s Business

“Our core business, our bread and butter, has been supporting the oil and gas industry throughout Alaska. Last year we were lucky to have had project work for ConocoPhillips, BP, and Hilcorp on the Slope,” Kissee says. “In 1996 we diversified our operations by forming a JV relationship with Tikigaq Corporation of Point Hope known as Tikigaq/CONAM to pursue work within the North Slope Borough.”

42

Aerial view of Furie Operating Alaska’s Kitchen Lights project, recently completed

by CONAM.

of their North Slope operations The first major project perfacility. formed was the Point Hope WaCONAM’s history started on ter & Sewer project building the the North Slope, but today the water and sewer treatment infracompany has expanded to prostructure and distribution system vide services across the state. In throughout the village. “Since addition to its Anchorage headformation of this relationship, quarters and a facility in DeadTikigaq/CONAM has performed horse, CONAM has a shop office numerous projects throughout complex in Kenai and recently the North Slope Borough having Dale Kissee completed the Kitchen Lights worked in every North Slope Village,” Kissee says. Tikigaq/CONAM is cur- project, an onshore gas process facility, for rently working for the North Slope Borough Furie Operating Alaska, a Cook Inlet oil and under a five year contract providing opera- gas exploration and production company. tions and maintenance services for the Bar“We’re pretty diversified; we do lots of difrow Gas Fields and for the Nuiqsut Gas Line. ferent types of work, and that’s helped us sur“Last year CONAM made a concentrated vive over the years of the ups and downs of the effort to expand our construction services oil industry. So we’ve been fortunate there, to the mining industry in Alaska, resulting and we’re really fortunate to have the work in completed projects throughout the state that we have right now, with what’s going on in to include work at Red Dog, Kensington, the state,” he says, adding, “CONAM’s diverFort Knox, and Pogo mines which includ- sity and success is attributable to my manageed electrical, civil, and mechanical work” ment team that includes Bill Binford, North Kissee says. “The mines have been good; Slope Area Manager; Mike Sheppard, Kenai/ they’re good to work with—great clients— Cook Inlet Area Manager; Ben Eaton, Mining so we’re pretty excited about the opportu- Division Manager; Frank Veith, North Slope nities that we see there going forward.”

Borough Area Manager; and Randy Wandler, In addition, the company provides North Slope Equipment Manager.”

Looking forward, Kissee says that he has equipment maintenance services, running Ford and Peterbilt warranty services out deep concerns over where the oil and gas in-

Alaska Business Monthly | April 2016 www.akbizmag.com

Safety and Satisfaction

Kissee says that no matter the job, CONAM’s top priority is safety, followed immediately by customer satisfaction. “Safety is number one, but we also have to perform and do our best to bring jobs in on budget and on schedule.” He continues on to say that much of his personal satisfaction in his work comes from providing clients with the best service possible. “Most of our clients are private sector, so it’s important that we satisfy them or they won’t have us back… When you get repeat business with your clients, it’s a big deal.”

Kissee himself has had a long history in Alaska’s oil and gas industry. While originally from Oklahoma, Kissee came to work in Alaska in 1976, right in the middle of Prudhoe Bay’s construction later moving to Alaska in 1980. When he moved to Alaska, he was working for H C Price, but over the course of his career transferred to CONAM, having been with the organization for thirty-six years. “I started out in the field as a Project Engineer with Price working pipeline projects, then became estimating manager responsible for all the estimates for a period of time, and then was construction manager and operations manager.”

A little more than two years ago CONAM reorganized, at which time Kissee took over as the company’s president, now using his extensive expertise to the benefit of CONAM’s clients. In addition to his work experience, Kissee is an outdoorsman and pilot.

He’s flown in Alaska for over thirty years, through which he’s gained an up-close insight into the challenges of Alaska’s remote areas and occasionally harsh conditions.

Employing Alaskans For the most part, CONAM’s current work is project based, so their workload fluctuates seasonally. “We’d love to be more in the maintenance side of things, it would provide more year-round consistency,” Kissee says, which benefits the company and its employees. He says that in the last few years CONAM has had projects that have continued into the winter—such as the Furie project and work in the gas fields in Barrow—which has been a boon. “Having that year-round work has helped us a lot in retaining our people. We’re hoping that we can get more into the maintenance side of things,” he says.

Kissee says that whenever possible CONAM focuses on local hire. “There was a www.akbizmag.com

time a few years back when the oil industry was poppin’ and hoppin’ and it was tough finding, particularly, good welders and electricians and good, high quality staff.”

He says that once CONAM has brought in an employee, the company does it’s best to treat them well, providing competitive benefits, 401k plans, health plans, etc.

He continues that CONAM’s management works hard to promote a good relationship with all 250 CONAM employees starting at the very top. “I get out in the field as much as possible to visit with our employees and check up on the work,” Kissee says. “We have an open-door policy, and we encourage

people to be comfortable with us.”

CONAM’s management checks in regularly with employees to go over the work and discuss concerns that employees may have. “I think if you ask some of the guys that’ve been with us a long time, they’d say, ‘Yeah, these guys are easy to approach, they’re easy to talk too, they care about us’—and we hope they say we’re great to work for,” Kissee laughs. “I think a lot of them really do believe that.”

R Tasha Anderson is an Associate Editor at Alaska Business Monthly.

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ALASKA BUSINESS MONTHLY | 2016 CORPORATE 100 | COMPANY PROFILE

dustry in Alaska is headed with low oil prices and the fiscal uncertainty of tax changes currently being discussed. “We need to be looking at ways to encourage oil and gas development which creates jobs and keeps oil flowing down the pipeline rather than discouraging investments,” Kissee says.

ALASKA BUSINESS MONTHLY | 2016 CORPORATE 100 | COMPANY PROFILE

Watterson Construction Maintaining quality relationships

By Tasha Anderson

W

atterson Construction has been providing construction services to Alaska since 1981, when it was opened by Watterson Construction President Bill Watterson and his wife, who has since sold her shares in the company. Watterson now shares ownership of the company with five other shareholders.

Employing Alaskans

Many Alaska companies see the wisdom in local hire, and Watterson is no different.

Not only does the company focus on hiring Alaskans to do work in Alaska, but it makes an effort to employ people from the region in which the work will be performed. “We’ve had a job up at Fort Greely for a little over a year now,” Watterson says. “We hired about twelve or thirteen people from the Delta area, good quality people. That community has its own culture, and [our employees] that live there love it. Most of the people who go there from somewhere else don’t like it at all,” he laughs. “But [local hire] is good for us, and it’s good for the community.”

As another example, a superof their employees, one of Watintendent and foremen were sent terson’s site safety personnel, to work on a project in Seward; is taking an extended leave for the remainder of the employees health reasons. To find someone needed for the project were hired to fill in for him, the company out of Seward. One hire stood “started calling around and out: “He’s really good; we knew leaving messages and found right away,” Watterson says. At a former employee that had the initiation of the second part worked with us until about a of the project, this employee was Bill Watterson year ago, and she said yes, she promoted to superintendent. wants to come back,” Watterson Watterson says that employees hired in this says. “I called the current employee to make fashion can have opportunities to move to sure he knew he wasn’t going to get laid off, other sites, if there’s work available and they that he would be able to work when he can.” are interested.

That kind of communication, Watterson Watterson also hires locally for their staff says, is one of the important ways that the positions in their Anchorage headquarters. company maintains quality relationships be“Fortunately we have low turnover,” Wat- tween all of its employees. The most important terson says, but it’s inevitable to need some thing, he says with a smile, is to have fun. But new employees over the years. Watterson’s other things are important: “I always say that brother Jim is on the advisory board for the everybody needs to work on their vocabulary: Construction Management program at the they need to learn to say ‘we’ and ‘our’ and ‘us,’ University of Alaska Anchorage, and so far because ‘I’ don’t get the job done,” Watterson Watterson has hired five employees from says. He says he also makes a point of giving that program, and three employees have employees appropriate credit for their good come from the University of Alaska Fair- work. All of Watterson’s 119 employees are banks campus, one of which is Watterson now Alaskans, with the company’s last out-ofhimself. state employee recently selling his shares.

“We had one gal stop in cold and I interKey Considerations viewed her and twenty minutes later I said: I think we better talk to her a little longer. And Watterson does construction in various so we hired her,” he says. Just recently, one areas of the state, though not on the North

Kodiak High School, renovated and expanded by Watterson Construction.

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Alaska Business Monthly | April 2016 www.akbizmag.com

cal building for the missile field there. “It’s got concrete walls twenty-six inches thick; the floors are three feet thick; and the concrete roof is eighteen inches thick.”

He says the building needs to be built to withstand the possibility of a missile accidentally exploding, a mishap that actually occurred at the Kodiak Launch Complex in 2014. “The missiles don’t have any warheads in them, they’re contact missiles,” Watterson explains. “What blows up is the propellant.”

In addition to the building itself, other modification are necessary for the field to function properly and safely. For example, all of the manholes are fitted with lids that are

designed to not come off because of the vacuum created if a missile explodes. Most of the 10,000-square-foot building has steel shielding to protect the controls from radiation.

While this project is particularly interesting, no matter what the project is, Watterson, and his employees, are passionate about the work that Watterson Construction does: “I wouldn’t do anything else,” Watterson says. “We have a lot of people that think that way.”

R Tasha Anderson is an Associate Editor at Alaska Business Monthly.

Ongoing Projects

Watterson says 2015 was a record year for the company, but he says in 2016 Watterson may not reach $100 million in work, which has been their approximate revenue for several years. The many projects that Watterson took on are being finished, and nothing new is currently scheduled to start in the spring.

But the company still has ongoing projects. “The one we’re doing at Fort Greely is one-of-a-kind,” Watterson says. The company is constructing a mechanical and electri-

Photo by Rick Parkhurst / Courtesy of Watterson Construction

www.akbizmag.com

April 2016 | Alaska Business Monthly

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ALASKA BUSINESS MONTHLY | 2016 CORPORATE 100 | COMPANY PROFILE

Slope. The company does have an office in North Pole, staffed by four employees, including one shareholder. “He went up there in 1989 for one job,” Watterson laughs.

“And now he’s been there for a long time.

We just keep getting more work.”

This may be due in part to Watterson’s commitment to provide quality on every job for every client. “We like to think that at the end of the job the client thinks they got their money’s worth,” Watterson says.

Their key considerations are quality and safety. Watterson Construction hasn’t had a lost-time accident in nine years, and is the only AK CHASE Gold level participant.

(The CHASE program is a partnership between Alaska contractors and Alaska Occupational Safety and Health to reduce construction injuries, illnesses, and fatalities in Alaska.) “We want our clients to know they’re going to get a top quality job and nobody gets hurt,” Watterson says.

ALASKA BUSINESS MONTHLY | 2016 CORPORATE 100 | COMPANY PROFILE

Alaska USA Federal Credit Union Working to eliminate obstacles

By Tasha Anderson

A

laska USA Federal Credit Union has been providing financial services in Alaska since before Alaska was a state, having been chartered in 1948. According to the company, “The fifteen founding members felt that local financial institutions were not adequately meeting the credit needs of the federal civil service personnel who had been recently transferred to Alaska. … Accordingly, the credit union was founded and members began pooling their savings and extending credit to one another, while volunteering their time to operate the credit union.” The Alaska USA Board hired its first employee in 1959, the same year that Alaska became a state, and since then the company has expanded its services, service areas, and employees.

Employing Alaskans

According to Alaska USA President and CEO William Eckhardt, Alaska USA’s strategy to finding and keeping a quality workforce is to offer “employees a professional workplace 46

Alaska USA’s C Street building in Anchorage.

Photo courtesy of Alaska USA Federal Credit Union

the functions individuals perform and articulates to them the value of those functions; recognizes the achievements of each employee; makes every effort to contribute to each employee’s development and knowledge through on-the-job training and education; and finally, establishes a structure where employees have a vested interest in the success of the organization achieving its service objectives.”

with competitive pay and a comprehensive benefits package, as well as a wide variety of career, advancement, and training opportunities in communities across Alaska.” Alaska USA reports that they have a worldwide total of 1,772 employees; of those 1,291— Involved Leadership more than 70 percent—are Alaskans, a clear Eckhardt himself has a long history with testament to the credit union’s commitment Alaska USA, as he’s been the president and to serve the state in which it formed.

CEO of the company since 1979. Currently he “Accomplishing Alaska USA’s objectives serves the credit union in many capacities, requires adherence to superior standards as he is chairman of Alaska USA Insurance of performance at every level. Accordingly, Agency, chairman/CEO of Alaska USA Trust each employee is an important member of Company, and serves on the board of Alaska the Alaska USA team,” Eckhardt USA Mortgage Company. Ecksays. It naturally follows that hardt says that the aspect of his Alaska USA is deeply invested in work he is most passionate about maintaining a positive relationis “providing members with sership with all of its employees. vice, value, and convenience conEckhardt says that maintaining sistent with Alaska USA’s charter this relationship is multifaceted: and cooperative principles.”

“Alaska USA is concerned for emIn addition to his purely busiployees as individuals who have ness endeavors, Eckhardt is the personal as well as professional president of the Alaska USA lives; demonstrates an interest in Bill Eckhardt Foundation, an “independent

Alaska Business Monthly | April 2016 www.akbizmag.com

Growing and Growing In addition to building philanthropic efforts, Alaska USA has grown well beyond its humble beginnings in terms of services, members, and geography. Today it has nearly 600,000 members worldwide and $6.2 billion in assets. According to the company, “Alaska USA operates seventy-five branches, six financial centers, sixteen mortgage lending offices, and seven insurance agency offices in forty-two communities in Alaska, Washington, California, and Arizona.”

The credit union’s services range from checking, savings, and loans for individual members or their businesses to mortgage and real estate loans, insurance, investments, and financial planning services. According to Eckhardt, Alaska USA top priorities in providing those services are: “exceptional service responsive to member needs; real value in terms of the best loan and deposit rates and low fees with many services provided free; and convenience in terms of physical and electronic access and availability.”

For example, Alaska USA has a comprehensive range of electronic services, and was even a frontrunner in this field, being the first financial institution in Alaska to offer account access via personal computer. Other conveniences include “a branch network with most branches open seven days a week, a call center staffed by member service representatives that is available 24/7/365, and a surcharge-free network of over fifty-five thousand ATMs,” Eckhardt says.

ditionally high-risk industries are in many ways the backbone of Alaska’s economy: oil and gas, mining, construction, transportation, and fisheries.

As Alaska business owners and operators are well aware, there’s no substitute for genuine Alaska experience. “Alaska USA works closely with business members to understand their specific needs and tailor services to fulfill those needs,” Eckhardt says, and the credit union’s physical, in-state presence and long Alaska history contributes to their ability to aid Alaska’s businesses.

Further, Alaska USA works to eliminate obstacles that businesses may stumble into

when looking for financial services. Eckhardt says, “Alaska USA responds to loan requests quickly and stands by the terms approved with no last minute changes that are often experienced by borrowers at other commercial lending institutions. Business owners appreciate this approach so they can focus on their core business and not be adversely impacted by long approval times and changing terms.”

R Tasha Anderson is an Associate Editor at Alaska Business Monthly.

Business in Alaska

While Alaska USA may have started providing credit to individuals, it has grown to successfully provide quality financial services to Alaska’s business community.

Eckhardt says that this success is “is a result of the focus on developing and offering a simple, straightforward, and easy to understand commercial loan and deposit services platform and comprehensive commercial insurance options as well as risk management services.”

Insurance and risk management options are of particular importance in Alaska’s business community, considering how trawww.akbizmag.com

April 2016 | Alaska Business Monthly

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ALASKA BUSINESS MONTHLY | 2016 CORPORATE 100 | COMPANY PROFILE

philanthropic organization providing financial support to children’s organizations and those supporting veterans and active duty members of the armed services,” according to the company. The Foundation is sincere in its effort to accomplish its mission. In February the Alaska USA foundation hosted the 21st annual appreciation breakfast to honor Alaska’s military, and at the Alaska USA Foundation’s 2015 annual food drive, credit union members raised more than $76,300 to support community food banks.

CONSTRUCTION

Sitka’s Blue Lake Expansion Project Wins Grand Award for Best Construction Project of 2015 48

Alaska Business Monthly | April 2016 www.akbizmag.com

S

itka’s Blue Lake Expansion Project was the most impressive construction project of 2015, the Associated General Contractors of America announced March 10. As a result, the project’s contractor, Barnard Construction Company, was the Alliant Build America Grand Award winner and best Federal and Heavy Renovation project. This project was one of twenty-three winners to receive an award and one of nine to receive a Merit Award.

Photo by Derik Olsen © AGC of America

www.akbizmag.com

April 2016 | Alaska Business Monthly

49

Sitka students on a field trip to the $92 million Blue Lake Expansion Project job site (far left). In March the project won the Grand Award for Best Construction Project of 2015 along with two other awards at the AGC of America’s Alliant Build America conference.

Photos by Derik Olsen © AGC of America

50

“The contractors working on these projects stood out among their peers by demonstrating the finest traits of our industry: skill, dedication, and ingenuity,” said Charles Greco, the association’s president and chairman of San Antonio-based Linbeck Group. “This is the kind of project that inspires other contractors to push even harder as they work to improve our built environment.”

Barnard Construction Company raised the then-145-foot-tall Blue Lake Dam by 83 feet to its maximum geotechnical height and built a 15.9 megawatt powerhouse.

Construction was undertaken on a fasttrack schedule under the intense scrutiny

Alaska Business Monthly | April 2016 www.akbizmag.com

of a heavily-invested public, reliant on the dam for power and on Blue Lake for drinking water. The team successfully completed construction in difficult conditions including the dam’s remote island location in one of the rainiest locations in the United States. Throughout construction, there were no interruptions to the city’s drinking water and the team was mindful of the natural fish barrier just below the dam, using construction methods that allowed salmon to spawn downstream of the dam.

“Celebrating these well-deserved accomplishments promotes continued creativity and excellence among peers and showcases the dedication and inspiration that the con-

struction industry offers,” said Peter Arkley, Senior Managing Director, Alliant Insurance Services. “Alliant is proud to be a longtime sponsor of the Build America Awards.”

The association also released a new report analyzing the elements that made the winning projects so successful. The report found that contractors are most likely to succeed when they rely on a mix of planning ahead, ensuring safe work environments, performing quality workmanship and overcoming unexpected challenges.

The association is distributing the report to its members so other firms can benefit from the lessons these projects and their contractors have to offer.

The Alliant Build America Awards highlight the nation’s most significant construction projects. A panel of judges, representing all areas of construction, evaluated an impressive number of submissions this year, assessing each project’s complexity, use of innovative construction techniques and client satisfaction, among other criteria. The awards, which were announced during the association’s annual convention in San Antonio, are considered by many to be the most prestigious recognition of construction accomplishments in the United States.

SOURCE: AGC of America

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51

MANUFACTURING

Courtesy of Peter Luchsinger/Pal Photography

Bambino’s Baby Food CEO and founder Zoi Maroudas with a plate of molded star-shaped meals from her new line of nutritionally balanced frozen baby foods.

Bambino’s Baby Food is Alaska Grown from Farm to Freezer

Courtesy of Peter Luchsinger/Pal Photography

Manufacturing start-up expands production, plans dedicated facility

By Heather A. Resz

D

r. William Campbell watched Zoi Maroudas growing up working in her family’s Anchorage restaurant.

These days, he’s watching with interest as she creates her own business out of giving baby food a nutritious and delicious makeover.

As a psychiatrist, he says he’s fascinated

by Maroudas’ effort to introduce tasty food that is good for babies early in life.

“The fact that this baby food tastes really good is a huge step,” Campbell says.

52

Bambino’s Baby Food CEO and founder Zoi Maroudas with her mom and daughter in the kitchen at Pizza Olympia in Anchorage.

Alaska Business Monthly | April 2016 www.akbizmag.com

Bambino’s Baby Food line—including Yummy Yams, Googly Carrots, Hungry Munchkin, Salmon Basket, and Happy Peas—is formulated to be nutritionally balanced and to introduce babies to a variety of vegetables, grains, fish, and peanuts during their first year of life, Maroudas says.

But beyond its nutritional benefits, Campbell says there also is a real benefit to families in reducing the food-related struggles between parents and children.

“I’ve actually eaten it myself and it tastes really good,” he says.

Campbell and his wife are godparents to Maroudas’ daughter. He says he was surprised to learn the hors d’oeuvres served at the child’s christening in January was actually Hali Halibut—an item from Maroudas’ line of frozen baby foods.

Hali Halibut tasted very much like a seafood bisque he’d spent hours making a few weeks prior, Campbell says.

The Alaska salmon and halibut in the meals also provide natural omega-3s, which are important to brain development and social interactions, he says.

Anchorage allergist Dr. Teresa A. Neeno says when researchers began looking at the science about ten years ago, they discovered the advice pediatricians had given parents for decades to delay feeding certain foods to children was wrong.

“We used to take whatever what was on the plate, chew it up, and feed it to the baby,” Neeno says. “In this case, the grandmas were right.”

Founder and CEO of Bambino’s Baby Food and Zoi Food For Life, Maroudas was four when she moved from Greece to Alaska with her family. The food in both of her product lines reflects the Mediterranean diet that continues to nourish generations of her family in Greece, Italy, and the United States, she says.

Although Maroudas grew up in the kitchen, it was an internship in geriatrics after graduating pre-med from Baylor University that led her to carefully consider the importance of nutritious diet in personal health.

When her plans to continue training at Baylor College of Medicine in Houston, Texas, were truncated, Maroudas returned home to Alaska and refocused her energy on helping the people in her own state.

‘Bambino’s Fed’

For the last three years, Maroudas has used Pizza Olympia’s kitchen from Midnight to 10 a.m. to develop and certify her line of nutritionally balanced baby food with the Food and Drug Administration and US Department of Agriculture.

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Bambino’s Baby Food Wins Alaska Symphony of Seafood Awards

W

SOURCE: Alaska Fisheries Development Foundation

Courtesy of Zoi Maroudas

hen Alaska Fisheries Development Foundation unveiled the winners of the Alaska Symphony of Seafood during the Awards Ceremony on Friday, February 19, Bambino’s Baby Food emerged as the winner of several contests.

First place in Retail, the Juneau People’s Choice, and the Grand Prize all went to Bambino’s Baby Food’s Hali Halibut.

The Symphony is an annual contest for new products made from Alaska seafood. The goal of the Alaska Symphony of Seafood is to increase the value of Alaska’s seafood resource by encouraging value-added manufacturing.

“I am beyond words and truly grateful for the overwhelming support from all the voters of the Alaska Symphony of Seafood. I look forward to scaling up our business, helping the Alaskan economy, and helping grow healthy, active generations to come,” said Zoi Maroudos, owner and president of Bambino’s Baby Food at the event.

The first place winners from each category and the grand prize winner will receive booth space at the distinguished Seafood Expo North America in March, as well as airfare to and from the show provided by sponsor Alaska Airlines.

The Alaska Symphony of Seafood kicked off on February 10 in Seattle. The competition enlists chefs and industry experts to pick the best new seafood products each year. In Seattle, the judges tasted, deliberated, and selected their favorite products.

Evaluations were based on the products’ packaging and presentation, overall eating experience, price, and potential for commercial success.

R

transported from certified organic Alaska farms to the Spenard kitchen where the ingredients are added to the cook pot at precise intervals during the process to retain maximum nutrients and vitamins, Maroudas says.

Then the food is placed in star-shaped molds and flash frozen, which results in meals with seven to ten times the nutrients of typical grocery store baby food, she says.

“Both of my babies are Bambino’s fed,” Maroudas says of her children Constantine, six, and Athina, one.

The day before her daughter was born, Neeno sent her a copy of a study published in the New England Journal of Medicine investigating peanut allergies in children.

A few weeks later, Maroudas had created her special Peanut Mani Cookies as a way to introduce kids to peanuts.

Neeno says it’s an easy way to introduce children to peanuts in a controlled way and reduce their likelihood of developing the allergy.

Pediatricians now advise parents to start feeding babies small amounts of fruits, vegetables, grains, eggs, milk, fish, and peanut protein as soon as infants are developmentally ready—can sit up straight, respond to the spoon, etc., she says.

“There is a significant difference in peanut allergy in kids who were eating peanuts regularly,” Neeno says.

Dedicated Production Facility to Open Bambino’s Baby Food sells three thousand to four thousand units per month through its website bambinosbabyfood.com and at New Sagaya grocery stores in Anchorage, and, in the summer, at Anchorage’s Southside Market and at Shell gas stations in Soldotna, Kenai, Nikiski, and Homer.

The company offers three-, six-, and twelvemonth subscriptions for gluten free, vegetarian, vegan, combo, and pescatarian diets.

Each resealable pouch has fourteen shaped cubes, equivalent to four or five standard baby food jars. To serve, remove the desired amount of food and warm the frozen stars.

Maroudas says production has nearly reached capacity at Pizza Olympia. To take her business to the next level, she has invested in equipment to prepare, shape, and flash freeze the food at a new dedicated production facility set to open mid-summer.

She says the Anchorage facility will include Bambino’s Baby Food’s Salmon Basket is made with sockeye salmon from Alaska.

Courtesy of Zoi Maroudas

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Alaska Business Monthly | April 2016 www.akbizmag.com

Courtesy of Zoi Maroudas

Daily passenger, charter and freight service to more than 100 Alaska communities.

Bambino’s Baby Food’s Happy Peas are nutritionally balanced for babies four months and older.

a retail store with an observation window so visitors can see the preparation process.

The expansion is partly in response to interest in the product line from Albertsons, the second largest supermarket chain in North America, Maroudas says.

Building the Bambino’s Baby Food brand while caring for her two young children has added to the challenges of starting a business, but it also means she knows firsthand a mother’s struggle to feed her kids a nutritious diet on a businesswoman’s harried schedule.

“Any person who starts their company starts small, and it can be challenging,” Maroudas says. “I often had found the hours intolerable,” she says. “I would create product all night and continue the day with meetings, calls, and daily business day tasks to help grow the company.”

When she feels overwhelmed by the pressures of motherhood and business, Maroudas says she reminds herself of the goal: “How are you going to help the community?”

She sees potential to grow Bambino’s Baby Food into a national baby food brand created, locally sourced, and produced in Alaska.

It’s not about the profit, Maroudas says.

The real reward is seeing children and families enjoy her products. Plus, proper nutrition is a good investment in personal health for families, states, and for the nation, she says, adding: “It’s a feel good product with a good return.”

R Heather A. Resz lives in Wasilla.

She’s told Alaska’s stories for nearly twenty years. www.akbizmag.com

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April 2016 | Alaska Business Monthly

55

EDUCATION

Career Advancement Courses Alaska universities offer professional development

By Kailee Wallis

T

he days when people clocked in and out at the same company for years (and years) are over—no one expects that anymore. So what if, while climbing the career ladder, the next job is slightly out of reach? The pursuer might need a technical skill they don’t possess, he might want to explore a career in a different field, and she might need her Master’s degree. Seeking career advancement options while mid-career can be daunting, seemingly impossible. “It’s only going to benefit you,” says Tiffany Casey, a marketing coordinator at DOWL, an Anchorage consulting firm.

Casey, who balances her classes with her full-time workload, is taking two graphic design classes at the University of Alaska Anchorage (UAA). Casey describes her steady balance of her career and school projects, trying to meet work deadlines while in the middle of class critiques and due dates. “The good thing is that I’ve already received comments on improved document design by coworkers and management, so the fruits are ripening. It’s definitely worth it.”

Whether the goal is to fluff the resume for the next big job opening or improve the work that is in front of them, career advancement tools are available. In Alaska, there are several universities that offer everything ranging from seminars to certificates to occupational credit to a degree—with career-minded adults in mind.

For instance, Alaska Pacific University (APU) has a whole program set within the parameters of the working professional. Additionally, the University of Alaska system has a wide array of different studies available to take in the evenings or online, whether through the University of Alaska Fairbanks, University of Alaska Southeast, or UAA. Finding the right balance between a career and additional education can be difficult, so it is best to explore the options before beginning the venture.

APU

APU features a unique Professional Studies program, designed around students who wants to begin or continue their education while working full time. The university refers to these programs as their “Accelerated Degrees.” These select degrees offer a nontraditional combination of night, weekend, and online classes to achieve three business related degrees: an Associate of Arts in Business Administration; a Bachelor of Arts in Business Administration and Management; and an Accelerated Bachelor of Arts in Business Administration and Management/Master of Business Administration.

Stephanie Morgan, PhD, assistant professor and director of business administration and management at APU, says they base the programs around adults already mid-career. “Because we cater to working adults, we value their experiences in the workplace. Our classrooms are dynamic, and it is always exciting from a pedagogical standpoint to hear students share having observed a concept or theory in play at work since the last class. It keeps students very engaged,” says Morgan.

Nearly one hundred students are enrolled in these accelerated programs this semester, and Morgan says almost all their students 56

“Because we cater to working adults, we value their experiences in the workplace.

Our classrooms are dynamic, and it is always exciting from a pedagogical standpoint to hear students share having observed a concept or theory in play at work since the last class. It keeps students very engaged.”

—Stephanie Morgan, PhD Assistant Professor and Director of Business Administration and Management, APU

enrolled in the accelerated program hold full-time jobs. Because these classes are tailored to a working professional, all the courses are offered in the evenings or through online classes. Many of their MBA programs offer those online classes as well, combined with on-campus intensives. Morgan says most students enrolled in APU’s MBA courses tend to be working adults as well.

“The accessibility of online courses has led students to flock to them,” says Morgan. The ease of accessibility and flexibility of commitment has made e-learning the wave of the future for working adults, and many find their course load to be much easier with the help of technology.

“Students can be travelling for work or live outside of Anchorage and still complete their degrees,” comments Morgan, noting that students do not need to interrupt their careers to complete or further their education. “We follow up with our alumni, who remain steadfast in their beliefs that their education here was worth it and has propelled them professionally,” says Morgan.

Hands-On, Immersed Training

UAA has a Community & Technical College (CTC) campus, which focuses on hands-on, immersed training for its students. CTC teams up with industry partners to ensure that they offer the most relevant teachings to the employers in automotive, aviation, construction, hospitality, technology, occupational safety, and oil and gas. CTC is a “college within a college” according to Dana Thorp Patterson, the continuing education director at CTC. She describes CTC as a community college-oriented environment, serving as a “point of entry” for the public. It’s difficult to stay relevant in a world that is constantly evolving—CTC offers non-credit courses that serve as “refreshers” for those who need a better understanding of the advancing world. Some classes that CTC offers to non-degree seeking students include focused classes on Microsoft programs, accounting, Adobe designing software, and customer service skills.

These courses do not require the typical daunting two-hour registration process that requires digging up college transcripts

Alaska Business Monthly | April 2016 www.akbizmag.com

from the past. Designed with someone who graduated college many years ago in mind, the registration process is simple for nondegree seeking students that do not want to deal with the fuss.

Bonnie Mygard, interim dean of UAA’s CTC, describes the school’s close relationship with industry partners as a fundamental piece of their workforce training.

Across sixteen different advisory boards, industry partners in aviation, oil and gas, and other major Alaska industries come in and advise CTC on the characteristics and skills they look for in potential employees.

Industry leaders are eager to give back and educate the future workforce, says Mygard, because they want to give back to where their own education got them. “Their education led them to where they are,” says Mygard. They return the favor by “serving our industries,” by providing them with compatible and successful students, says Mygard. In partnering with those industry partners, CTC is able to offer students hands-on feedback from potential employers through career fairs and industry days.

Continuing professional development can start with a weekend class or emerging in one of CTC’s many industrial departments to close that gap between technician to manager. “Our students leave here with the knowledge to be leaders in their field, not just fill a job,” says Mygard.

ACHIEVE MORE

Of all the numbers we work with this is the most important 91

Number of Northrim Business Bankers

907

›8,500

Number of small business loans since Northrim opened

Dr. Krislyn DeLeon

Mt. McKinley Animal Hospital Fairbanks, Alaska Customer since 2010

Certificate Programs

UAA offers thirty-nine certificate programs, which range in length from six-months to two-years and lead to an Occupational Endorsement Certificate, Undergraduate Certificate, or Graduate Certificate. According to Eric Pedersen, associate vice chancellor for enrollment services at UAA, 48 percent of UAA’s student body is made up of non-traditional students.

These students may be enrolled in certificate programs, working to complete an unfinished degree, or non-degree seeking.

Last fall nearly seven hundred courses were offered online, and just fewer than nine hundred courses were offered after 4 p.m., according to Pedersen.

However, he advises people to really evaluate their schedules before deciding to look for additional schooling. “The first thing a potential student needs to do is make a firm commitment to the time and energy returning to school will take,” Pedersen says. “Doing well and benefiting from a return to school takes a commitment of time, money, and energy.”

R Kailee Wallis is a freelance journalist living in Anchorage. www.akbizmag.com

INVESTING IN ALASKA BUSINESS Like you, we’re here for the long run. We’re here to help you and your business get to the next level. With Northrim’s expert, local advice we can map out a plan so even now, you can Achieve More.

Call us and let’s get started.

907-455-1111 | 1-800-478-2265

northrim.com April 2016 | Alaska Business Monthly

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WORKFORCE TRAINING

Alaska Forum Trains Environmental Technicians Apprenticeship program seeks employers for summer fieldwork recruits

By Rindi White

A

relatively recent addition to Alaska’s pool of apprenticeship programs is assisting companies in project development, mining, reclamation, and other fields in finding reliable environmental technicians.

Alaska Forum, Inc. is a federal nonprofit formed to support the annual Alaska Forum on the Environment, a conference held to talk about a variety of environmental topics including climate change, energy, sustainability, solid waste and recycling, marine debris, hazardous waste cleanup, hazardous materials management, pollution prevention, and other issues that affect Alaska.

The Forum has since expanded to operate an Environmental Technician Apprenticeship program, the Green Star environmental conservation and pollution prevention program, and to provide solid waste training and other online courses.

Local Technicians Needed

Apprenticeship Director Karen Kroon says the Environmental Technician Apprenticeship program began because oilfield operator ConocoPhillips brought forward a request for more Alaska-trained environmental technicians.

“Conoco was saying they were hiring contractors who were bringing people to come up from out of state and they were bringing families up here, then [the employees] realize it’s dark and cold and they’d move back south,” Kroon says. The company said they would prefer to see their contractors hire Alaskans, who are familiar with the realities of living in this state, but couldn’t find enough trained local technicians to meet their needs.

Environmental technicians need to be able to collect soil, water, air, and other samples while meeting very high standards for sample integrity.

“Maybe they’re going out into a field for a new project, or a pipeline project, or for 58

“The employers would receive a pre-screened and interviewed applicant who is ready to go to work. The program is really sound, and we always get a lot of good candidates for it.”

—Karen Kroon Apprenticeship Director

cleanup of a site, where they’re sampling soil and air and water quality,” Kroon says.

ConocoPhillips has provided some financial support in the past and helped to create the program, Kroon says. They and other employers donate their time and expertise on an Advisory Board for the program.

Focus Is on Employer Participation Although trained environmental technicians are a recognized need in the state, Kroon says she works hard to help employers understand the value of their program and to be willing to participate with the apprenticeship.

Ten employers currently work with Alaska Forum on the program: ConocoPhillips; CH2M Hill; Environmental Management, Inc. (EMI); Environmental Resources Management (ERM); Exp Global, Inc.; UMIAQ; the Knik tribe; Weston Solutions, Inc.; SGS North America, Alaska Division; and TTT Environmental.

“The job market has been a little bit of an uphill battle these last few years,” Kroon says.

With more employers, Kroon says, there would be space for more apprentices. Currently, the program has eight apprentices enrolled. This spring, Alaska Forum will be accepting twenty-five people to go through the initial three hundred hours of training it offers.

Kroon says applications are accepted through mid-May and training starts at the

end of May. After applicants go through the Alaska Forum training, they may get a job with a partner employer. After four thousand hours of work, they are eligible for certification through the Alaska Department of Environmental Conservation.

That’s two years of full-time employment, Kroon adds, though for most apprentices it takes longer—generally three years or more—because the work is often seasonal.

Not all the applicants who go through the initial training will get a job with a participating employer, Kroon says. Since the program began in 2010, forty-four people have been enrolled in the training. Of those, about thirty have left the program for other employment or did not successfully complete the apprenticeship, she says.

“A lot of people move on and get jobs on their own. We feel that’s a success too,” Kroon says. “The thirty who did not continue [with the apprenticeship], several of them moved on, got a promotion, or moved on to a field that interests them more.”

Alaska Forum relies on investment from the state and federal government to pay for the program. The value of the training is roughly $10,000 per apprentice, she says, but the training is provided to them for free. That’s where the value for participating employers comes in, she says.

“The employers would receive a prescreened and interviewed applicant who is ready to go to work. The program is really sound, and we always get a lot of good candidates for it,” Kroon says.

Alaska Business Monthly | April 2016 www.akbizmag.com

‘A Great Deal’

Cory Hinds is a project manager with CH2M’s Environment and Nuclear Business Group. He says the company has been involved in the apprenticeship from the beginning and sees a huge benefit to participation.

“We have hired three right now and we’re looking to hire more this year,” he says of the apprentices. “It’s really a great deal for us. We get these apprentices that are all trained up; they already know how to start collecting environmental samples. They get a lot of good on-the-job training from us and they come up to speed very quickly.”

The apprentices at CH2M are generally hired as flexible employees who do fieldwork in the summer and into the fall. In some cases, the employees are able to go to the Lower 48 to work on CH2M projects there.

“That’s a really good opportunity for them. They come back with additional experience they’ve gained from those projects. Some of our techs have been at high levels of responsibility, like being a team lead [while working Outside],” he says.

Wages Grow with Training

Like most apprenticeships, Alaska Forum’s program specifies a certain wage scale be paid to apprentices who have just completed initial training. It typically starts at $15 an hour. Wages increase according to how many hours of work and training the apprentice completes, ramping up to $25 an hour by the end of the apprenticeship.

“But as soon as they complete the program and are hired by CH2M, they would step into higher salary grades,” Hinds says.

As an employer, the company checks to be sure apprentices are filling out the necessary paperwork to complete their training, Hinds says, but most of the work falls to the apprentice, not to his or her supervisors.

“We put the responsibility for completing that squarely on our apprentices and technicians,” he says.

It can be a little challenging to make sure the apprentice is given the opportunity to complete the range of duties required by the apprenticeship—each skill level requires a certain number of hours be spent doing different kinds of tasks.

Hinds says finding duties to fit the skills needed to be gained can be challenging, but not impossible. “We’ve been successful in finding them pieces of work that fit,” he says. “It’s generally feasible to do and it’s not really an inordinate amount of work to keep up with that paperwork.”

The apprentice’s salary is the only cost to the company for participation, Hinds says, www.akbizmag.com

adding: “Frankly, I see it as a very good deal for CH2M. I don’t know why other consultants don’t do this more,” he says.

Recent Graduate Excited about Long-Term Career Westley Hendley is the most recent graduate of the apprenticeship program, having received his certification in February. He says he’s the first in his family to get into the environmental sciences field. He went that route because he loves the outdoors, he says.

“I spend a lot of time outdoors,” he says.

“I felt like it would fit me and my personality.”

Hendley learned about the apprenticeship program while searching online for jobs in the environmental field. He got into the program in 2012 and, after just more than three years, is fully certified and working for UMIAQ. Hendley says his apprenticeship didn’t follow the typical path—he interviewed with a few different employers when trying to get into the program and got an immediate job offer. Instead of completing his training first, he worked on it after hours and completed it when his seasonal position was over.

After the initial job was done, he says he called potential employers one by one, telling them he was an apprentice and looking to continue in the field. He got hired with TTT Environmental, a participating employer.

“They hired me pretty much on the spot.

They were really supportive in my efforts to go through the program,” he says.

Now Hendley is with UMIAQ, a subsidiary of Barrow-based Alaska Native corporation Ukpeaġvik Iñupiat Corporation.

“They were also a sponsor in the program, and I was looking for more opportunities to do outdoor sampling activities,” he says.

Hendley says he was able to travel to remote villages to do some of the work with UMIAQ, a part of the job he has really enjoyed. And he’s been able to complete all of the skills training he needed to achieve his certification—in part thanks to his work at three different companies.

“Bouncing around from company to company that specialized in different work scopes helped me to fulfill all the on-thejob training requirements. There were a lot of requirements that were hard for me to complete—they weren’t in my general work scope,” he says. “I had a lot of help along the way.”

R Rindi White is a freelance journalist living in Palmer.

April 2016 | Alaska Business Monthly

59

ENERGY

Renewable Energy in Alaska State’s investments generate big returns

By Heather A. Resz

D

espite Alaska’s vast energy resources—renewable and oil and gas—Alaskans pay nearly twice the US average of 9.8 cents per kilowatthour for electricity. Only Hawaiians—at 34 cents per kilowatt-hour—pay higher average costs than Alaska, where some rural communities pay upward of 50 cents per kilowatt-hour, according to the US Energy Information Administration.

When Alaska’s energy costs and oil prices peaked about a decade ago, the Legislature passed several bills aimed at reducing energy costs for households and businesses by increasing conservation, energy efficiency, and the use of renewable energy. At the same time, the state also was enjoying record oil profits and had capital to invest in retooling Alaska’s far flung energy systems.

Many of these investments will continue paying by generating savings on Alaskan’s 60

electrical and heating costs for the next fifty to one hundred years, according to Sean Skaling, programs and evaluation director for Alaska Energy Authority (AEA).

For instance, the Renewable Energy Fund has invested $257 million in resource assessment and the development of renewable energy projects across Alaska since 2008. The result is fifty-four new projects that will save Alaskans an estimated $60 million in electric and heating costs this year alone, according to the “2015 Status Report and Round IX Recommendations” released in late January by the AEA, which manages the fund.

Multiplied over the lives of the projects, that equals billions of dollars in savings for Alaskans in avoided fuel costs.

AEA staff recommended grants for another thirty-nine projects this year, but the Governor’s budget only includes $5 million

for the program—enough to fund the top seven projects.

Micro-Grid Working Laboratory

Statewide renewable energy makes up 25 percent of the electricity pie. But in some rural Alaska communities, renewable resources supply 100 percent of electricity, Skaling says.

“Alaska communities are seeing big economic benefits from integrating renewable energy with existing diesel systems,” he says.

He highlighted the success of Kodiak Electric Association, which uses a one-ofa-kind integrated hydro, wind, battery, flywheel system to reduce its diesel use by 99.7 percent.

Alaska has working hands-on knowledge with more than fifty integrated microgrid systems in operation, Skaling says.

Alaska Business Monthly | April 2016 www.akbizmag.com

The wind turbines on Fire Island across Turnagain Arm from Anchorage, shown in January 2013, represent the initial phase of a much larger planned renewable energy project by CIRI’s Fire Island Wind LLC. © Doug Lindstrand / AlaskaStock.com

Extreme challenges call for creative solutions.

For proven experience, call on Crowley.

“We’ve learned so much—the state, AEA staff and power-plant operators in rural Alaska, and contractors,” he says. “We’re getting much better at it.”

Working with the community of St. George taught AEA staff more about integrating wind with small diesel systems and the value of designing integrated community heating and power systems. Located on the most southern of the Pribilof Islands, the community of 160 was powered by one diesel generator when it applied for grant funds in 2011 to pursue more stable and affordable power to help grow the commercial fishing operation on the island.

The community was slated to receive multiple grants for several individual projects through the Rural Powerhouse Systems Upgrade programs, Denali Commission funds, and the Renewable Energy Fund, according to AEA’s 2014 annual report.

Instead, AEA staff worked with St. George to navigate the multiple funding systems and design and construct a new energy-efficient modular powerhouse, waste heat recovery system, integrated controls with remote monitoring, and wind turbine power distribution as one integrated system. www.akbizmag.com

THE PROJECT:

Installation of a natural gas production platform, 16 miles of underwater pipeline and an onshore production facility in Cook Inlet, Alaska.

THE CHALLENGE:

Infamous tides, extreme currents, harsh conditions and a short season.

THE SOLUTION:

Crowley provided installation engineering and project management services, acquired specialized marine assets, and built and managed a team of 300 experts from around the world.

THE RESULT:

Incident-free project successfully completed on schedule.

907.891.8241 Crowley.com/MarineSolutions

April 2016 | Alaska Business Monthly

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This whole-system approach saved St. George more than $1 million in costs, and the project was completed eight months early.

“The improvements brought on by our partnership with AEA strengthened St. George’s place in the regional fishery economy and help to stabilize our community,” St. George Mayor Patrick Pletnikoff said in AEA’s 2014 annual report.

Since diesel electricity generation produces heat, heat recovery projects also are eligible for the renewable energy fund program, Skaling says. About half of this year’s top recommended grant applications are heat recovery projects.

“There is value in renewable heat and in renewable electricity,” he says.

50 Percent Renewables by 2025

Alaska’s history using renewable energy traces back to a small, water-powered sawmill built at Sitka in 1840 during the Russian colonial era. Alaska was a world leader in hydropower installations by 1908 with at least thirty installations of varying sizes providing electricity for mining, canning, and sawmill businesses, according to John Whitehead’s 1983 report “Hydroelectric Power in Twentieth Century Alaska: Anchorage, Juneau, Ketchikan and Sitka.”

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Today, there are about seventy integrated micro-grid electrical systems operating mostly in rural Alaska, Skaling says. And every day they operate, they also generate valuable new information about hybrid diesel systems, he says.

Since Chris Rose formed the Renewable Energy Alaska Project in 2004, the seventymember coalition has helped craft a string of energy bills creating such programs as the Emerging Energy Technology Fund and the Renewable Energy Grant Fund.

And, in turn, those investments have helped generate an emerging knowledgebased economy related to hybrid renewable systems, he says.

“We are considered world leaders in wind-diesel hybrids,” Rose says.

In 2016, renewable resources—hydro and wind mostly—produce about 25 percent of the state’s electrical generation.

That’s half the goal set in a 2010 state energy policy that aims to boost Alaska’s renewable electricity generation to 50 percent by 2025 and reduce per capita energy consumption 15 percent statewide by 2020.

One of the oldest renewable projects in the Railbelt region is the hydroelectric plant at Eklutna, which has provided renewable energy to Southcentral Alaska since businessman Frank Reed’s Anchor-

age Light and Power company powered on the plant October 8, 1929.

Although the 47 megawatt dam and hydro plant has been rebuilt and expanded several times since then, Eklutna Lake has continued to generate a portion of the power that Anchorage Municipal Light and Power, Chugach Electric Association, and Matanuska Electric Association sell to their customers.

Operating since 1991, AEA owns the 126 megawatt Bradley Lake Hydroelectric Project near Homer, which provides about 10 percent of power to customers along the Railbelt. Some industry watchers say Bradley Lake’s potential to reduce costs is constrained by an inadequate and outdated transmission system that is owned variously by AEA, Chugach Electric Association, City of Seward Electric, Golden Valley Electric Association, Homer Electric Association, Matanuska Electric Association, and Municipal Light and Power.

Reducing Railbelt Use and Costs

Could a single system operator reduce Railbelt use and costs?

Whereas the Lower 48 is a network of interconnected power grids, Alaska has more than 150 standalone electrical grids, including six major electric operators in

Alaska Business Monthly | April 2016 www.akbizmag.com

the Railbelt region that collectively own billions of dollars in interconnected generation and transmission assets that deliver electricity to customers across a span stretching from Homer on the Kenai Peninsula to Fairbanks in the Interior.

Reaching the 50 percent renewable energy goal set by the Legislature in 2010 will likely require a single system operator to oversee the economic dispatch of electrical power across the grid, Rose says. The state also may need to update its transmission system and its rules to allow access to the grid for independent power producers, he says.

Rose uses Fire Island Wind’s currently stalled $50 million project to add eleven wind turbines to its existing 17.6 megawatts installation near Anchorage as an example of the need to update the state’s transmission tariff structure and rules for independent power producers.

In 2015, Golden Valley expressed interest in buying power from the CIRI subsidiary at the 6.2 cents a kilowatt-hour asking price, but with the multiple transmission tariffs that had to be paid along the way, the price rocketed to more than 20 cents per kilowatt-hour—killing the deal, Rose says.

The Regulatory Commission of Alaska (RCA) is expected to adopt new rules in April that change the way the target price is calculated for independent power producers who wish to sell renewable energy into the grid. The new rules should make it easier for producers to sell into the grid, Rose says.

The retooling effort could also include the formation of an independent for-profit electric transmission company to consolidate ownership of transmission assets that are now owned by seven different entities.

Several area utilities began this effort January 7, 2011, when they formed the Alaska Railbelt Cooperative Transmission and Energy Company. The companies signed a nonbinding memorandum of understanding with American Transmission Company in December 2014 to examine the formation of a transmission company to finance upgrades and maintain the whole system as efficiently as possible.

Separately, the 2014 Alaska Legislature directed RCA to review “whether creating an independent system operator, or similar structure in the Railbelt area, is the best option for effective and efficient electrical transmission.”

Efficiency Effort Includes Voluntary Reorganization Dr. Antony Scott of the Alaska Center for Energy and Power completed that review, and the RCA sent a letter to the Alaska Legwww.akbizmag.com

islature June 30, 2015, that included a list of five findings and recommendations regarding grid restructuring and a warning, should the utilities fail to comply.

Southcentral utility companies invested $1.5 billion in new Railbelt electrical generation over the past five years, but there is no plan and no funding mechanism to finance needed upgrades to the transmission system to deliver maximum benefits to ratepayers. The report says, “to realize the maximum benefit from this investment the Railbelt electrical transmission system and generation must be operated in the most effective and efficient manner possible.”

The recommendations include creation of an independent transmission company; system-wide merit order economic dispatch; and enforceable and consistent Railbelt operating and reliability standards.

Efforts to achieve cost savings by consolidating electric utilities in the region date back forty years or so, the RCA wrote.

If this voluntary reorganization effort fails, the letter says the RCA will “work with the Legislature and the administration to develop and implement specific action steps to institutionalize system-wide merit order dispatch.”

“If the Railbelt electrical system were a blank slate today and the current institutional facts on the ground didn’t exist, a single utility owning and operating all of the generation, transmission, and distribution assets would probably be the most efficient and effective system. That is not the situation we have today,” the RCA wrote.

Leaving nothing to chance, in 2015 the House Special Committee on Energy also introduced House Bill 187, which calls for the RCA to establish the Railbelt Electrical Transmission Authority to develop “a reasonable plan to manage the electric transmission system of the Railbelt area; determining, objectively and unbiasedly, the optimal output of electrical generation facilities to meet the system load, at the lowest possible cost, subject to transmission and operational constraints of the Railbelt area; and consolidating operations and tariffs.”

Rose says instead of “feel-good” energy benchmarks, Alaska needs a long-term, forward thinking energy policy.

“Energy is the life-blood of any economy,” Rose says. “Without affordable energy, it is very difficult for businesses to develop within a community—or for a person to develop their full potential.”

R Heather A. Resz lives in Wasilla.

She’s told Alaska’s stories for nearly twenty years.

April 2016 | Alaska Business Monthly

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ALASKA NATIVE CORPORATIONS

The City of Old Harbor and Old Harbor Native Corporation work together to realize a shared overall goal of building infrastructure to support a fish plant for economic development.

Photo by Cynthia R. Berns/ Courtesy of Old Harbor Native Corporation

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Alaska Business Monthly | April 2016

www.akbizmag.com

Developing Rural Alaska ANCs address energy crisis and infrastructure needs

By Russ Slaten

H

igh energy costs and infrastructure needs are a common theme in rural communities across Alaska. As state and federal funding has continued to decrease, some Alaska Native corporations have become integral in finding energy and infrastructure solutions for villages in their region.

Whether through renewal energy projects or infrastructure improvements, these corporations aim to reduce the outmigration of residents in their communities and to answer the needs of the people back home. www.akbizmag.com

April 2016 | Alaska Business Monthly

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Old Harbor Native Corporation

Photo by Melissa Berns/Courtesy of Old Harbor Village Corporation

Old Harbor Native Corporation has worked with the City of Old Harbor and the Alutiiq Tribe of Old Harbor since 2006 to develop a community plan that included many of the infrastructure improvement projects the community has been working on to date.

Old Harbor Native Corporation, in collaboration with the City of Old Harbor, has successfully completed the Boat Harbor Replacement Project and the City Dock Replacement Project and is currently overseeing the ongoing Old Harbor Airport Safety & Expansion Project, says Cynthia Berns, vice president of administration and external affairs at Old Harbor Native Corporation.

The community is in the process of permitting a hydroelectric project with AVEC, the electric provider for the community, she says.

“The corporation has been involved in the development of Old Harbor by providing the backbone to keeping these projects moving forward,” Berns says. “We provide a lot of support to the city and tribe for pursuing funding that makes these projects

Old Harbor community potluck for IRT Team.

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Alaska Business Monthly | April 2016 www.akbizmag.com

Old Harbor IRT team during demobilization.

Photo by Cynthia R. Berns/Courtesy of Old Harbor Village Corporation

Old Harbor IRT construction team.

Photo by Cynthia R. Berns/ Courtesy of Old Harbor Village Corporation

www.akbizmag.com

April 2016 | Alaska Business Monthly

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viable and ultimately to be completed. The corporation provides in-kind project management to the city and tribe for various projects from inception to completion.”

In 2010 the City of Old Harbor and Old Harbor Native Corporation completed the replacement of the small boat inner harbor facility, which provides a safer facility for commercial fishermen, sports fishing businesses, and subsistence activities in the village, Berns says.

In 2011 the corporation completed the construction of a new dock facility, which was required in order to maintain fuel delivery service to the community, Berns says.

It also provided ferry service, economic development prospects, and an overall safer facility for public use.

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“Although not all our shareholders are in the village, there’s an understanding that Old Harbor is our home, and this is where we’re all from,” Berns says. “There’s such a huge rural to urban outmigration, and the concern arises when the school reaches less than ten students and closes which can ultimately shut down a community, and we don’t want our community to die. Having a board of directors who really believes in supporting our community has helped our village thrive and continue to do well into the future.”

The city and corporation began the Old Harbor Airport Safety & Expansion Project in 2012, which is ongoing due to budget constraints, Berns says. The two thousandfoot airport expansion project is a partnership between the corporation, the city, the

state, and the federal government. The goal of the project will be to level out the slopes along the edge of the runway, a safety concern for pilots, while extending the runway to accommodate larger aircraft and provide economic development opportunities.

The project is about 50 percent complete through work with a contractor and the Innovative Readiness Training program with the US Department of Defense, she says.

“The Innovative Readiness Training program provides support to projects across the nation and they bring all their own equipment, temporary housing, and personnel,” Berns says. “The corporation was able to leverage the program with the Marines picking up the project and providing support from 2013 forward.”

Alaska Business Monthly | April 2016 www.akbizmag.com

IRT team with construction equipment for Old Harbor project.

Photo by Cynthia R. Berns/ Courtesy of Old Harbor Village Corporation

This year 320 reservists and 32 Alaska Army National Guard members, with about 47 personnel at a time, will help build the airport extension from late-April to July.

The goal of the infrastructure projects is ultimately to build a fish processing plant in Old Harbor, Berns says. A fish processing plant would provide direct jobs, create a fish tax for the city, increase ex-vessel fish prices, and provide value-added prospects and all support businesses that go along with a fish processing plant.

Ahtna, Inc.

The regional corporation of Ahtna, Inc., based in Glennallen, is answering the energy crisis in two fronts窶馬atural gas and renewable energy. www.akbizmag.com

April 2016 | Alaska Business Monthly

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Ahtna’s Tolsona natural gas project was scheduled to begin drilling on state-owned lands in April. Located about ten miles west of Glennallen, Ahtna began by completing an access road and drill pad in January, mobilizing a drill rig in February, and drilling an expected new well to a depth of about five thousand feet, says Joe Bovee, vice president of land and resources at Ahtna.

“We started the Tolsona Oil and Gas project about six years ago in the application process,” Bovee says. “At that time we had a fair idea of the size of the field out here. Knowing that it’s not going to be a Cook Inlet or Point Thomson sized gas field, we were moving forward even five years ago with the assumption that if we get enough local gas up here it would be a game changer for the local economy.”

Even if the Tolsona Oil and Gas project is successful, Ahtna must still find a solution for distribution.

Out of four independent utilities companies in the region—Golden Valley Electric, Alaska Power & Telephone, Copper Valley Electric, and Chitina Electric—none of the utilities are tied together, Bovee says; however, there are nearly a thousand miles of electrical transmission and distribution lines in the area.

Bovee says to look at this in the bigger picture, if the state of Alaska tied the utilities together, there would not only be a market for the gas, but it would also save the state millions of dollars a year in what the companies pay in PCEs (power cost equalizations) to cover the additional surcharge in diesel fuel that most of them use.

“The Ahtna region uses about 4.5 million gallons of diesel fuel in a year,” Bovee says.

“If you put a number to that of $3 a gallon, [and diesel is] currently a little less than that, that’s $6 billion that goes into people’s pockets in Houston or London. So the more we can do with renewable energy—which keeps the dollars local—is going to help. Every dollar we can save here will stay here.”

Ahtna is looking to assist in multiple renewable energy projects within its region, but the closest to coming online is a pellet mill biomass project in Gulkana expected to open in early spring, Bovee says. The Gulkana pellet mill is expected to displace about 380,000 gallons of fossil fuel annually.

The Native Village of Gulkana is developing and managing the mill, with Ahtna providing technical support, grant writing, and the timber resources to the pellet mill.

“Rural Alaska has been in the midst of this energy crisis for decades,” says Michelle Anderson, president of Ahtna.

“There has been no statewide solution, no regional solution, and really it’s come down to the local residents in each region to come up with the solutions. This should

Alaska Business Monthly | April 2016 www.akbizmag.com

be a growing concern for the state though.

Communities are coming up with solutions that fit them, but not necessarily fit together as you branch out farther and farther.”

NANA Regional Corporation

In 2008, leaders from NANA Regional Corporation and Northwest Alaska recognized the need to address the energy crisis in rural Alaska caused by the high cost of energy, so the region developed an energy plan, and its efforts continue today.

According to Sonny Adams, director of energy at NANA, the energy plan began by analyzing each regional community to see which renewable resource would best fit that particular village, whether it be biomass, hydro, solar, or wind projects.

“The plan was not based on the regional corporation’s or an external organization’s decision regarding energy solutions for each community. It was NANA and partnering agencies listening to each community and what that community wanted,” Adams says.

NANA began with energy efficiency and spent $1.9 million in funding for RurAL CAP to implement the EnergyWise program in the NANA region. Crews of four to ten people per village conducted basic energy efficiency upgrades in homes across NANA’s eleven communities. Residents were given

cost-free energy saving devices like power strips and winterization materials. The project was a win/win, lowering energy bills for regional consumers and creating local hire opportunities to winterize homes.

Recent larger-scale renewable energy plan accomplishments in the NANA region include the final commissioning of wind projects in the villages of Deering and Buckland this past summer. The challenge for these projects now is optimizing circuits for wind generation that were made for diesel power generation. Kotzebue Electric Association and the Northwest Arctic Borough have taken the lead in final commissioning for these two wind systems.

Kotzebue Electric is also currently working on commissioning a new battery system for the longstanding wind farm in Kotzebue.

The new system will maximize the renewable energy potential of the wind resource.

A future renewable energy project with some promise in the NANA region is the potential for solar power in the village of Shungnak, located about 10 miles downstream from the village of Kobuk and 150 air miles east of Kotzebue.

Shungnak was selected last May to receive technical assistance through the US Department of Energy Strategic Technical Assistance Response Team Program. The

program helps communities develop strategic energy plans, conduct energy awareness and training programs, and pursue new renewable energy and energy efficiency opportunities. A recent wind study was also completed in Shungnak, and NANA is partnering with Shungnak IRA to apply for renewable energy funding from the Alaska Energy Authority, Adams says.

As NANA looks at renewable energy projects in its region, Adams says the corporation must keep all of its connections with partnering and funding organizations to continue to face the ongoing energy crisis across rural Alaska for the good of the economy of the region and the state.

“It’s important to maintain the sense of urgency that things need to change in rural Alaska,” Adams says. “We need to keep the rural energy crisis front and center in the minds of policymakers. We can’t keep starting back a zero when administrations or department heads change. Rural Alaska is a key player in the emerging Arctic Alaska economy. It is in all of our best interest to solve rural energy obstacles so we can full participate in the economic opportunities of an American Arctic.”

R Russ Slaten is an Alaskan writer.

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FINANCIAL SERVICES

Mergers and Acquisitions Help Alaska Companies Expanding markets and enhancing services

By Tracy Barbour

I

n recent months, a number of Alaska companies have engaged in mergers and acquisitions to enhance their market, expertise, and competitive position.

Two of the largest private employee benefits firms in Alaska and the Puget Sound region combined forces. An Anchoragebased engineering company expanded its statewide presence with the acquisition of a Southeast civil, structural, and geotechnical engineering firm. And a Montana corporation announced its agreement to purchase nearly forty mining claims near Fairbanks.

Here is a summary of these merger-acquisition activities and what they mean for Alaska’s business community.

The Wilson Agency and Albers & Company Merge On August 31, 2015, The Wilson Agency

“The combination of Albers & Company’s expertise with that of our staff will provide our clients with a deeper and broader support system for their employee benefit programs. The Wilson-Albers merger means we can give our clients the depth and breadth of costeffective traditional products and the innovative services they need to succeed, which are critical in today’s competitive world.”

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LLC of Anchorage and Albers & Company, Inc. of Tacoma, Washington, announced a “definitive merger agreement” to expand their service offerings to Alaska and Washington business owners.

The deal has attributes of a merger and acquisition for the complementary entities, both of which are employee benefits advisory firms. As part of the agreement, The Wilson Agency acquired Albers & Company’s stock, and the firms combined their financial services and retirement plan businesses. “Functionally-speaking, we are merging operational,” says Lon Wilson, president and CEO of The Wilson Agency.

“From a transactional perspective, there are elements of equity, cash, and debt that were used to put the transaction together.”

The acquisition of Albers & Company enables The Wilson Agency to gain more of the employee benefits, financial ser-

—Lon Wilson President and CEO, The Wilson Agency

vices, and individual insurance market.

“The combination of Albers & Company’s expertise with that of our staff will provide our clients with a deeper and broader support system for their employee benefit programs,” Wilson explains. “The WilsonAlbers merger means we can give our clients the depth and breadth of cost-effective traditional products and the innovative services they need to succeed, which are critical in today’s competitive world.”

The merger has resulted in the establishment of Wilson Albers and Company LLC, a holding company for three subsidiaries: The Wilson Agency, Albers & Company, and ConnectHR, a human resources consulting and administrative services firm launched in May 2015. Today, the newlyformed Wilson Albers and Company represents three service lines: health and welfare services; retirement plan and financial services; and human resources services.

In terms of personnel, The Wilson Agency currently has twenty-two employees, while Albers & Company has a staff of thirteen.

ConnectHR has four full-time employees.

Now that the merger-acquisition has been undertaken, it’s essentially business as usual for both companies. The Wilson Agency and Albers & Company will continue to operate under the same names in their respective markets. Likewise, the companies’ personnel will remain unchanged. “Our clients will continue to work with the same faces and people they’ve always worked with,” Wilson says.

But, of course, a considerable amount of integration is taking place behind the scenes. The companies’ accounting, financing, and human resources are being combined, along with their technology systems.

“We’ll be on the same platform, which will allow us to scale all of our teams,” Wilson says. “We can leverage expertise and personnel whether they’re in Tacoma or Alaska.”

The merger is also prompting The Wil-

Alaska Business Monthly | April 2016 www.akbizmag.com

son Agency to add employment in Alaska.

For instance, the company recently hired a support services manager, who is assisting with the integration of their technology systems. Additional finance and human resources personnel have also been employed in the Alaska market.

In regard to management-related role changes, Wilson is the managing member for Wilson Albers and Company. Jeff Albers continues to function as the retirement plan and financial services director for Albers & Company and now The Wilson Agency. Jennifer Bundy-Cobb is serving as the director of health and welfare services for both companies.

The merger affords The Wilson Agency an opportunity to expand into a larger, similar market. From a population perspective, the city of Tacoma is not too dissimilar to Anchorage, Wilson says. In Tacoma, there are some fairly dominate features of the economic landscape that are similar to Alaska, such as the port and extensive military community (via Joint Base Lewis-McChord). Tacoma also has a strong economic development board and a chamber presence. “For us, Alaska is a finite market, and Tacoma allows us to expand into a broader market,” Wilson says. “Economically, that marketplace [Tacoma] is growing.”

He adds: “It was really a strategic play for us.

It’s giving us additional resources and greater access to a pool of qualified professionals.”

For Albers & Company, the union brings about the execution of a business succession plan Wilson had discussed with its late founder, Steve Albers, several years ago. “The merger allowed his wife to retire from the organization and the business to continue,” he explains.

Wilson and Steve Albers (Jeff Albers’ brother) had been colleagues and friends through their involvement with United Benefit Advisors, a national alliance of independent benefits firms. They had often discussed business and intimate details about their companies. “I knew their culture and how they were structured,” Wilson says.

“And I knew the merger would be a good fit.”

Both companies feel that the current environment supports a merger that remains local, independent, and resourceful. “We feel strongly that joining forces with Albers & Company will allow us to realize these strategic goals,” Wilson says.

PDC Inc. Engineers Acquires Juneau Firm This year instituted significant growth in the corporate footprint of PDC Inc. Engineers. The full-service planning, engineering, and survey firm acquired R&M Engineering Juneau on January 1, leveraging an www.akbizmag.com

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“Part of the acquisition was that we have a commitment from the previous owners that they plan on staying and continuing to work for the company. It’s important for the community to know that Mike and Mark are staying.”

—Royce Conlon President, PDC Inc. Engineers

important market expansion opportunity.

As part of the agreement, PDC Inc. Engineers acquired the assets and intellectual property of R&M Juneau. PDC also acquired the company’s name, which was important because of its ties to the community, according to President Royce Conlon.

“We’re continuing to use the R&M name through the transition,” Conlon says.

PDC is also retaining R&M Juneau’s seventeen employees, who will continue working in their same roles. Structural Principal Michael Story and Civil Principal Mark Pusich will maintain their leadership positions at R&M Juneau’s office at 6205 Glacier Highway. “Part of the acquisition was that we have a commitment from the previous owners that they plan on staying and continuing to work for the company,” Conlon says. “It’s important for the community to know that Mike and Mark are staying.”

With approximately 104 employees, PDC has been serving the Arctic for more than fifty years. Besides its new Juneau location, the 100 percent employee owned company also has offices in Anchorage, Fairbanks, Palmer, and Soldotna. R&M Juneau has 74

been providing comprehensive services to clients since 1969, and its acquisition will enable PDC to more effectively service projects in Southeast Alaska. In addition, R&M Juneau’s location will help strengthen the company’s existing relationships and support the infrastructure needs of the communities within the region. “It’s part of our plan to serve all of Alaska,” Conlon says.

PDC’s clients will benefit from R&M’s experienced staff and geographic location, as well as its capabilities in geotechnical engineering, materials testing (soils, concrete, and asphalt pavement), and special inspection services, according to Conlon.

The transportation group at PDC has a significant amount of airport and utilities experience to augment R&M’s Juneau’s Southeast experience in these sectors.

In addition, PDC’s staff has considerable street and highway experience for many similarly-sized communities as Juneau.

Conlon emphasizes that planning and design is about serving communities—not just producing construction documents. “Service is best provided when we have an in-depth knowledge of our clients and their challenges,” she says. “This kind of knowledge isn’t acquired from a distance, and the R&M JuneauPDC integration will provide our client’s with local knowledge leveraged with a full-service, multi-disciplined, one-stop shop.”

Southeast Alaska has always been an underserved market, Conlon says. And the addition of R&M Juneau will give the area’s business members access to an experienced, single source for complete design services. “PDC’s broader range and depth of engineering design solutions will translate into more efficiency and coordinated design for our clients,” she says.

Conlon—who feels strongly about staying all-Alaskan—is thrilled about adding R&M Juneau to PDC’s corporate family. “We don’t want to dilute who we are by going outside of Alaska,” she says. “We’re here with our Alaska clients’ best interests in mind.”

Story and Pusich are equally excited about joining PDC. “By joining forces, R&M Juneau’s clients will have the benefit of PDC’s additional capabilities with mechanical, electrical, fire protection, and environmental engineering; commissioning; sustainability; and planning/GIS,” says Story. “This is in addition to substantially increasing staff capacity in our traditional disciplines of civil and structural engineering, as well as land survey. PDC airport planning and design, along with their urban transportation expertise, will also be an added benefit for our Southeast clients and teaming partners. We have received nothing but positive feedback about R&M Juneau joining forces with PDC. Several of

our clients were excited about the additional services we could now offer.”

Pusich adds: “Our two firms have a long history of teaming together and will continue to build on our solid working relationship to benefit our clients. Over the past two years alone, we have jointly completed design and construction administration services for several notable projects.”

Recent collaborative projects between the companies include the University of Alaska Southeast’s Freshmen Dormitory, the US Forest Service’s Pacific Northwest Research Station, and Sealaska Heritage Institute’s Walter Soboleff Building.

At this juncture, there is no set target date for completing the integration of R&M Juneau into PDC. However, PDC is committed to ensuring a seamless transition. The company is working diligently to understand R&M Juneau’s system and operating procedures so that it can incorporate the best aspects of these elements into its operations. Currently, PDC is completing important system changeovers. “We made some investments and updated their IT, so we can share projects and drives,” Conlon explains.

“We’ll continue those investments so that we can work efficiently between offices.”

Gold Reserve Purchases Certain Raven Mining Claims Gold Reserve, Inc. recently announced that its wholly-owned Montana subsidiary, Gold Reserve Corporation, has entered into a purchase and sale agreement with Raven Gold Alaska, Inc., according to a January 13 news release. Raven, a whollyowned subsidiary of Corvus Gold, Inc., is selling certain wholly-held Alaska mining claims—the LMS Gold Project—along with personal property. The transaction is fully arm’s length and is subject to the approval of the TSX Venture Exchange.

The agreement provides for an all-cash acquisition in which the company will pay Raven $350,000. The agreement also stipulates under what circumstances Raven will retain a royalty interest with respect to “precious metals” and “base metals” produced and recovered from the property.

The property, which is at an early stage of exploration, is comprised of thirty-six adjoining state of Alaska mining claims in the Goodpaster Mining District located about sixteen miles north of Delta Junction and seventy-eight miles southeast of Fairbanks.

The acquisition is expected to close as soon as the TSX Venture Exchange grants final approval.

R Freelance writer Tracy Barbour is a former Alaskan.

Alaska Business Monthly | April 2016 www.akbizmag.com

FINANCIAL SERVICES

A Layoff? Don’t Let Your 401(k) Languish Why you might want to take it with you when you go

By Lori McCaffrey, KeyBank Alaska Market President

A

layoff can throw anyone into a tail spin. But after securing your immediate job-related needs, such as reinvigorating your network, dusting off your resume, and launching your job search, many employees wonder what to do about the 401(k) and other retirement accounts they have left at their former place of business.

Here in Alaska, we have two local specialists, Lara Shogren and Jeff Strike of our investment affiliate Key Investment Services, who frequently work with clients unaware that they can move their retirement plans to another financial professional— and that there are many savvy financial reasons to do so.

Here are five reasons that Shogren and Strike shared about why you might consider moving your retirement plans:  You will benefit from guidance. Most employees who come to us, even if they were pleased with the performance of their plan, wondered if they were getting the best value they could. Most companysponsored retirement accounts offer a mere handful of options, and it’s not unusual for many people never to have met or talked with a professional about their investment strategy. “Most people we talk to don’t even know details of the overall performance of their employersponsored plan, compared to indexes,” Strike says. A professional can help you maximize your performance with the appropriate allocations.

 You will receive a holistic review. Your financial picture is much more than just one account. A professional financial advisor will help develop a complete profile, delving into your income, tax situation, and college and retirement needs.

They will also assess your risk tolerance to make sure that recommendations match your goals and won’t keep you up at night.

And when you have an advisor looking at your complete financial picture, they may help you find other potential savings. By looking at your mortgage, for example, they may observe that your rates are higher than they should be and refer you to a mortgage specialist, or they can compare whole life and term rates to potentially find less expensive products or more appropriate life insurance vehicles.  You will have many more options. Many companies offer their 401(k) options through their paycheck processing vendor, and the solutions tend to be very vanilla. A firm, on the other hand, can offer you literally thousands of different investment options that are balanced for your time horizon, age, and risk tolerance.  You will have more control. Upon reaching seventy years and six months of age, most people need to begin their Required Minimum Distributions, which is the amount they must withdraw from retirement accounts by law. If you have both IRAs and 401(k) accounts, separate withdrawals must be taken from each

account. However, if you have all your funds in IRAs, you can add the balances together and take the required amount from any one of your IRAs, offering more control over which accounts you would like to liquidate.  You will have an advocate. “When the market swings wildly, it can be hard to stay the course,” says Strike. That’s what an advisor is there for, to talk you through the rough spots and help you avoid panic selling. People who have an advisor typically perform better than those who don’t because someone is watching out for you and helping you make smart decisions.

Take it With You

For most people, their 401(k)s and other employer-sponsored accounts are their main retirement vehicles. That’s why, in most cases, the best course of action when leaving a job is to take it with you and put it in the hands of a financial advisor who can help you make savvy decisions for your financial future.

R Lori McCaffrey is market president for KeyBank Alaska.

Contact her at 907-564-0340 or Lori_S_McCaffrey@ KeyBank.com.

Key Investment Services LLC, a FINRA registered broker/dealer, supports Community Banking clients with dedicated financial advisors across Key’s geographies. Through KIS, Key ensures that clients are aligned more closely with the proper delivery channels, offering a comprehensive set of investment and insurance solutions.

Investment products are offered through Key Investment Services LLC (KIS), member FINRA/SIPC. Insurance products are offered through KeyCorp Insurance Agency USA, Inc. (KIA). KIS and KIA are affiliated with KeyBank National Association (KeyBank).

Investment and insurance products made available through KIS and KIA are: NOT FDIC INSURED | NOT BANK GUARANTEED | MAY LOSE VALUE | NOT A DEPOSIT |NOT INSURED BY ANY FEDERAL OR STATE GOVERNMENT AGENCY KIS, KIA and KeyBank are separate entities, and when you buy or sell securities and insurance products you are doing business with KIS and/or KIA, and not KeyBank. KIS and its representatives do not provide tax advice. Individuals should consult their personal tax advisor before making any tax-related investment decisions.

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April 2016 | Alaska Business Monthly

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special section

Conventions & Meetings

© Kevin G. Smith/AlaskaStock.com

Combining leisure travel with conference and business travel is an increasing trend. Here, a family is running and playing on Bishop’s Beach in Homer on the Kenai Peninsula in Southcentral Alaska, an example of the nature of “Bleisure Travel” or “Bizcations” that is taking hold.

Maximizing the Value of Conferences to Communities ‘Bleisure Travel’ and ‘Bizcations’ emerge with social media boosts

By Karen Zak

I

t is well recognized that conferences stimulate economic growth in communities, but how do communities ensure they are receiving the maximum value?

Preparation prior to the event, professional execution during the event, and assessment after the event is essential. The benefits will be felt long after the conference ends by optimizing social media marketing, engaging the community and local businesses, and encouraging participants to extend their stays beyond the conference dates.

Combining Leisure Travel

More than ever, participants are combining leisure travel with conference and business travel, so much so that a new word 76

has emerged to describe this increasing trend, “Bleisure Travel,” or “Bizcations.” As leisure time and vacations decline, more frequent, shorter trips and family accompanied trips are filling the gap.

Location and area activities are a key decision factor when choosing to attend a conference, especially when accompanied by family members. This provides Alaska with a distinct advantage given the allure of the destination, diverse array of recreation opportunities, and people’s desire for a cultural exchange and interaction with nature. Travel and leisure experiences shared on social media now define social status more than material goods. Needless to say, a typical bizcation is rife with social media activity.

Take Full Advantage

So how does a community take full advantage of conferences to achieve the optimum value locally? Most communities measure the economic impact of participants’ spending within in the community at businesses such as lodging, restaurants, retail stores, entertainment, transportation, and venues.

Less recognized is the long-term global attention the conference brings to the community through social media marketing, world-of-mouth, and repeat visitors.

Promotion is the first step to ensure the organizer achieves the desired participation. With its limitless options—everything from Tweets, Instagram, Linkedin, Facebook, Pinterest, and YouTube—tech-

Alaska Business Monthly | April 2016 www.akbizmag.com

nology provides the best solutions. Whatever one’s comfort zone, adequate and continuous promotion is vital to generating the buzz surrounding the event, making it the most talked about and highly anticipated upcoming event. In today’s “always online” culture, social media weaves through each phase, amplifying the economic impact on the local economy in ways only personal referrals can.

Conventional Marketing

Of course there is still a place for conventional marketing too. Writing press releases for potential conference media coverage, utilizing local radio talk shows, and speaking at related events can help reach a traditional audience. An old-fashioned personal phone call to a person of influence may even garner a key contact for a monetary contribution. Reach out and extend community hospitality to an organizer by offering to write an official welcome letter for the conference program or to a dignitary to provide a personal welcome for the opening session or special event. Encourage extended stays by educating participants about all the opportunities available before and after the conference dates. This is especially important in the off-season when the perception may be that activities are limited. Ask

the organizer to add a link on the conference registration website to the Chamber of Commerce and Visitor Bureau website calendar of events and area activities. Each time conference attendees add recreational activities to their schedule along with family members, they circulate more dollars in the community.

Cultural Enrichment

Community engagement during the conference can also be culturally enriching to our communities, offering local volunteers and professionals exposure to event-related information that is not always available in their community. Many conferences extend open invitations to trade shows or events that may offer community members a one-time opportunity to experience.

Volunteerism, community hospitality, and sponsorship establish good will with the conference organizers and may ensure repeat commitments year after year to hold the event in a community.

A perfect example of a successful conference where volunteerism and community involvement was at its best is the GoWest Summit this past February in Anchorage.

Visit Anchorage ensured that the international tour operator delegates had every opportunity to see and experience Alaska

by coordinating with regional organizations to facilitate familiarization trips prior to the conference. It is difficult to gage the value of global social media exposure garnered by hundreds of professionals flaunting selfies of their Alaska experiences around the world, aiding the goal of bringing return visitors to Alaska.

Long-Term Benefits

Once the conference departs, how can a community reap the benefits long-term?

First seek valuable feedback from the organizer and how to improve the participant’s experience. Engage on Facebook sites by asking participants to share their experiences and photos. Don’t forget to extend an invitation to organizers to discuss the conference returning and getting a commitment in advance. Most of all, ensure the participants are eager to return by providing an experience they cannot get anywhere else.

R Karen Zak is the Executive Director of the Homer Chamber of Commerce & Visitor Center. Zak was previously the General Manager of Visions Meeting & Event Management for sixteen years in Anchorage.

TRAVELING TO A MEETING OR CONVENTION? SHARE YOUR LEAD WITH OUR TEAM.

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special section

Conventions & Meetings

Attracting Corporate Air Travelers in Alaska Airlines offer improved amenities and fleets

By Vanessa Orr

O

ne of the trending topics in the business world today is the “customer experience,” and it’s no different in corporate air travel, where airline businesses are vying to attract clients who travel throughout the state or to the Lower 48 on business. When sending company executives or employees to meetings, to on-site inspections, or to collaborate with other business partners, there are a number of things that those who book travel must keep in mind.

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Safety is paramount, of course, especially in a state where treacherous terrain and changing weather can hamper travel efforts.

The fact is that many businesses have facilities based in remote locations or locations that require specially configured aircraft to carry equipment or to land on a shorter runway, especially when heading to the North Slope or Bush communities. And comfort is always key, whether employees are taking a “short jaunt” from Anchorage to Fairbanks

to attend a conference or are heading to the fishing grounds of Bristol Bay.

You Can Get There from Here

Unlike most places in the nation, where it’s fairly easy to hop a plane, fly into a hub city, and then either transfer to another plane or take an alternative form of transportation to a destination, it sometimes takes a little more work when traveling in the Last Frontier. For this reason, many

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of Alaska’s air carriers offer a range of options, including scheduled and charter service, and a wide variety of routes.

“It all depends on what a client needs; we have regularly scheduled departures throughout the state with between eightyseven and ninety flights leaving every day—more so in seasonal or peak times,” said Michael N. Wien, vice president of marketing, sales, and public relations for Ravn Air. “We also offer charter service, www.akbizmag.com

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which allows us to be more flexible when working with corporate accounts. Between scheduled flights and charter flights, Ravn travels to well over one hundred different communities in Alaska.

“As Alaska’s largest interior regional airline, we are very proud of our network,” adds Wien, who says that the airline serves a wide variety of business clients from Alaska, the Lower 48, and around the world in fields ranging from the military and government to oil and gas, tourism, and seafood. “For example, I just finished working with a charter group that wanted to see as much of Alaska as they could by aircraft; through our network, we can give them that flexibility,” Wien says.

As one of the only carriers in Alaska that covers the entire state with a fleet of all twin-engine aircraft, Security Aviation provides about 1,400 flights a year to clients wanting to travel from the tip of the Aleutians to the North Slope, Southeast, Central Alaska, Canada, and even the Lower 48.

“We operate this fleet specifically due to the requirements of our customers, many of whose safety regulations require twin engines and two pilots,” explains Jason Ward, vice president of sales and marketing, Security Aviation. “Because of this, and the fact that we can access some very remote

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Courtesy of Fairweather LLC

The Deadhorse Aviation Center with a Shared Services’ jet disembarking passengers (prior to the installation of the heated jetway).

areas, we are an approved carrier for just about every state and federal agency on the books from the Department of Defense to the Army Corps of Engineers, as well as Native corporations, mining companies, and major oil and gas companies.”

While the airline does not provide scheduled service, clients can work on a contract basis to schedule charters to outlying project areas for such things as personnel changes and delivery of essential parts. “We have two Piper Navajos for

Alaska Business Monthly | April 2016 www.akbizmag.com

closer flights and five twin-engine turbo prop Cessna Conquests, one of which is set up with a unique cargo door configuration for larger equipment,” says Ward. “Three of the Cessnas are in a regular passenger configuration and one is in an executive configuration, though all of them can be used for executive travel.”

According to Ward, while some companies used to balk at the idea of chartering a plane for employee travel, many are now realizing the cost-effective nature of air charter. “Chartering a plan was traditionally associated with high costs, but when you look at the expense in time and money in taking six executive-level personnel on a trip—having them spend two hours in an airport, going through a TSA check, flying into a hub city and sitting there for three hours before getting on a connecting flight to their ultimate destination—you realize that it is far more cost-effective to charter a plane.

“Passengers can come to our facility fifteen minutes before take-off, get a direct flight to their destination, and return just as quickly,” he continues. “The beauty of the charter business is in those efficiencies.”

Individual and Corporate Booking

While many corporations used to have entire travel departments dedicated to book-

ing trips or worked through travel agencies, as budgets have been cut and Internet use has grown, times have changed. “In the last fifteen years, we’ve seen travel agencies consolidate until there are only a few left in the state of Alaska,” explains Scott Habberstad, director of sales and community marketing in Alaska for Alaska Airlines, “and most of these are focused on larger customers who do millions of dollars in travel.”

To this end, Alaska Airlines introduced EasyBiz, which is designed to let individuals or companies book and track employee travel. “EasyBiz allows companies to manage travel instead of having a third party do it,” says Habberstad, adding that three thousand corporate customers in Alaska use the program, which is available anywhere that Alaska Airlines flies.

“The name in and of itself explains the program,” he adds. “It’s EasyBiz. You sign up just by using your mileage plan number.”

As a participating EasyBiz company, companies earn one Mileage Plan Mile for every dollar spent on base fares. These miles are accrued on top of the miles that are already earned by the traveler on their own personal Mileage Plan account “It’s a win-win situation,” says Habberstad. “A company employee who travels on a $500 flight from Anchorage to Seattle earns the

company five hundred miles, while earning themselves almost 3,000 miles for the roundtrip.”

All travel is also easily tracked through the program, making it easy for company administrators to monitor who traveled when, what it cost, credits applied if trips were not taken, and more. EasyBiz also offers a price guarantee by request if ticket prices go down after fares are booked.

“I can’t really say that any one industry sector uses it more than another; it depends on the company,” Habberstad explains.

“The sweet spot is companies with twenty to thirty people traveling; when they have more than fifty people traveling, it gets more complex so they may use a travel agency. That said, we have customers with thousands of employees who use EasyBiz.”

Amenities for Working or Relaxing In addition to EasyBiz, Alaska Airlines offers its corporate travelers lots of amenities not only on its own flights, but through its other airline partners. “Our mileage plan program is rated among the best in the industry,” says Habberstad, “and we not only travel to one hundred destinations in North America, but through our partners, such as Emirates, Icelandair, and British Airways,

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you can use the miles you earn with us to travel the world.” Mileage can also be earned through non-airline partnerships, such as by spending money with GCI, Carrs/Safeway, and 1-800-Flowers.com.

As part of its brand refresh announced in January, the airline has also made updates in the past year to its cabins, including free entertainment and premium, justreleased movies; Tom Douglas signature onboard entrees; and seatback power. Its boardrooms in Seattle and Anchorage are now evolving to become lounges, and the company has also refreshed its website and mobile app. “We’re working hard to make travel easier,” says Habberstad.

While airlines are striving to make corporate passengers more comfortable, they are also working to provide a place where business can be conducted as well. “We provide our passengers with a high-end private facility that features custom leather furniture, a coffee/tea bar, and flat-screen TVs,” says Ward. “We can also provide separate meeting rooms if clients want to set up a conference prior to their flight.

“For example, a lot of times, when a state organization is collaborating with federal folks or private industry, it may be the first time that they are all meeting before getting on a flight,” he continues. “It’s not

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Courtesy of Fairweather LLC

Fairweather designed and built the first state-of-the-art heated jetway in the Arctic to keep passengers out of the elements.

unusual for them to want a space where they can sit down, do some introductions and look at overviews or a project, or have a safety briefing before they fly out.”

Security also prides itself on its attention to detail and always being available to clients. “That is our hallmark as a 24/7 carrier; clients who call us can talk to someone

in management personally, 24 hours a day,” Ward says. “They don’t get an answering service or voice mail—we are here to help them. That’s been very important to us over the years, and it continues to be.”

While all of the airlines are extremely safety conscious, Security Aviation also offers its customers an added incentive in

Alaska Business Monthly | April 2016 www.akbizmag.com

that it provides $50 million of liability insurance with no seat limits—the highest available in the state. “We are able to do this because of our outstanding safety record,” says Ward.

At Deadhorse Aviation Center, Fairweather LLC provides numerous amenities to help make corporate travelers’ trips easier. “We basically serve as a fixed-base operator for planes that work on the North Slope, including private planes and military work,” says Tim Cudney, director, Deadhorse Aviation Center. The company contracts with Shared Services Aviation, which is a co-venture between ConocoPhillips and BP and transports more than twenty thousand employees and contract workers every month between Anchorage, Fairbanks, and the North Slope. Alaska Airlines provides similar services to Exxon, Hilcorp, and smaller gas and oil company employees.

“We’re probably one of more unique facilities anchored toward delivering a large number of passengers to and from the slope,” Cudney adds. According to ConocoPhillips’ website, Shared Services is responsible for approximately twenty-four flights per week, crewed by eighteen pilots and twenty-five flight attendants, though Cudney says that the aviation center has seen a decrease in the number of flights lately as a result of the downturn in the oil and gas market.

“On an average day, pre-drop in oil prices, we’d see about 1,100 passengers through a day,” he says of the operation that caters to roughly 300,000 passengers a year.

According to its website, the facility itself includes accommodations for up to fortyeight tenants, including leasing tenants’ staff and transient personnel, and features private baths and satellite TV, along with a sixty-seat dining facility, exercise room, laundry room, and common areas. Additional facilities include private office suites, training and meeting rooms, and a cuttingedge telecom system that provides phone, high-speed Internet, Wi-Fi, VoIP, and video conferencing. Fairweather also provides ground transportation for personnel, logistics and expediting services, and equipment rental, including vehicles, forklifts, survival suits, and other marine and offshore gear.

Because these passengers are so important to the company, in cooperation with ConocoPhillips and BP, Fairweather designed and built the first state-of-the-art jetway in the Arctic this past September. “It was safety and customer-driven,” says Cudney of the heated passage that allows travelers to disembark into the aviation center. “We didn’t want passengers to have to depart on a regular stairway and walk across the tarmac where they would be out in the elements. www.akbizmag.com

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“Our goal is to mitigate any types of slips and falls that could happen as a result of the harsh environment,” he adds. “Like everything else on the North Slope, safety is paramount. Not only can a slip and fall cause an injury, but it can cost companies financially through lost time. Any way we can help to reduce that type of risk, we do it.”

PenAir, one of the oldest family owned airlines in the United States and one of the largest regional airlines in Alaska and the Northeast United States, recently made a huge commitment toward serving its corporate and commercial customers. The company invested $27 million into revamping its fleet, replacing its thirty-passenger aircraft with five forty-five-passenger aircraft that will get travelers to their destinations 30 percent faster.

“Last year, we provided sixteen thousand flights from Anchorage to Dutch Harbor to support the seafood industry and the people living there, and this year we expect to cut that number to nine hundred flights because our airplanes will be so much more efficient,” explains PenAir CEO Danny Seybert. “Instead of it taking three hours from Anchorage to Dutch Harbor—four hours if we needed to stop for fuel—it will take two hours. The new aircraft will shave off one-third of the flight time without the need to refuel.”

The new fleet, made up of Saab 2000s, began transporting passengers to Dutch Harbor, Dillingham/King Salmon, Sand Point, Cold Bay, the Pribilof Islands, Aniak, McGrath, and Unalakleet in March.

“We have tremendous faith in the seafood industry here,” says Seybert of the company’s decision to invest so much into the airline at a turbulent economic time.

“I don’t believe the economic downturn in our region will be as bad as in the rest of the state, especially in the areas that depend on the oil industry.

“I was born and raised in Bristol Bay and lived here my whole life, and my father, who started the airline, was also raised here,” he adds. “We understand the region and understand the business environment, and we believe that the area is solid enough with the seafood industry to provide a viable economy for years to come.”

While there are many challenges facing those flying for business in Alaska, the good news is that the airlines transporting them are always striving to provide a better customer experience. Not only can you get there from here, but you can do it safely in comfort and style.

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Freelance writer Vanessa Orr is a former Alaskan.

Alaska Business Monthly | April 2016 www.akbizmag.com

special section

Conventions & Meetings

Alaska Is a Growing Global Convention Destination Attracting and planning international meetings

By Russ Slaten

O

ver the past several years Visit Anchorage has seen an increase in international meetings taking place in the state’s business center of Anchorage. About 11 percent of Visit Anchorage’s convention business is international, with the goal to raise that to about 15 percent in the next three years. National conventions groups consist of about 29 percent of the meetings in Anchorage, with statewide groups making up 60 percent of the pie, according to Julie Dodds, director of convention sales at Visit Anchorage.

A team member working on a piece of the multi-block “Hunting Dragons” ice sculpture that won the Artist’s Choice Award at the 2013 World Ice Art Championships in Fairbanks. Team members were Steve Brice, Heather Brice, Steve Cox, and Justin Cox.

Targeting International Meetings With the uncertainty of the local economy, Visit Anchorage has taken steps to attract groups outside the state and increase Alaska’s profile through successful meetings in Anchorage.

Tourism and meetings are great economic drivers in times of uncertainty, Dodds says.

“Tourism and conventions create a lot of income for the state that wasn’t here before,” Dodds says. “It’s not just you and me passing it around, it’s brand new money that visitors leave here after they’ve gone, so it’s helpful to the economy.”

About 95 percent of Visit Anchorage business is aimed at associations, Dodds says. Visit Anchorage joined the International Congress and Convention Association nearly ten years ago, which is made up of convention and visitor bureaus from across the globe. It provides a large database of meetings that move around the world, and as a member, Visit Anchorage gets access to all of the international groups along with attendee numbers, where they’ve been, and the type of rotation for visiting cities.

“This past year we added about ninetyseven new potential international accounts,” Dodds says. “That means the meetings would fit here. It doesn’t mean all groups are bringing their meetings here; we have to start pitching Anchorage as a destination for those accounts.”

The main difference Dodds sees in the tourism side of Visit Anchorage versus

Photo by Sherman Hogue / Courtesy of Explore Fairbanks

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the conventions side of the business is the time frames that people book their trips.

Tour operators book trips for visitors in the same year or the next, while national associations typically book three to five years in advance, and international associations can plan five to eight years ahead, she says.

“International groups are a little different from national groups in that they really don’t mind to travel,” Dodds says. “Whereas Americans might say, ‘Wow, it’s going to take a whole day to get there,’ you have to overcome that barrier. But international groups travel all over the world, so travel time is not an issue with them.”

International groups typically expect newer, state of the art locations for meetings, with reliable Wi-Fi and all of the bells and whistles, Dodds says. Additionally, they look to incorporate tour packages for attendees before or after the event to experience the location.

International associations also operate differently from national groups when choosing a destination, she says.

“International meetings typically will not return to the same country less than ten years apart,” Dodds says. “So if Boston gets a meeting, then all of a sudden we have to wait probably ten years before we can consider bidding on it again—it’s just an interesting way that they do it. Whereas one national group has been to Anchorage

about three times since I’ve been here.”

Planning Support

State-based meetings in Fairbanks make up about 60 percent of the meetings, and 20 percent of meetings through Explore Fairbanks are international meetings—many of which come in connection through the University of Alaska Fairbanks, according to Helen Renfrew, director of meetings and conventions at Explore Fairbanks.

As the destination marketing organization in Fairbanks, Explore Fairbanks works with local groups in the very beginning, inviting international associations to come to Fairbanks, Renfrew says. Explore Fairbanks assists in putting together bid packets, presentation materials, and will sometimes accompany the local representative to present the bid to an international organization.

“The first hurdle with all meetings is having the space and guestrooms available for attendees,” Renfrew says. “Once we’ve ensured the space and additional needs are met for the meeting, we basically start talking about the visitor attractions because meeting planners want attendees to have a positive meeting experience.”

Explore Fairbanks continues to support the local planning group by acting as a resource, she says. The planners with the organizing committee communicate with Ex-

Alaska Business Monthly | April 2016 www.akbizmag.com

plore Fairbanks to make sure it incorporates all the activities that fit that particular group.

As the meeting commences in town, Explore Fairbanks aids in a community-wide promotion of the meeting through welcome signs across town. Through its Golden Heart Greeter network, volunteers can provide assistance to the local organizing groups by putting together welcome bags, assisting in registration, and by staffing Fairbanks information booths connecting attendees to activities, attractions, restaurants, and other opportunities in town, Renfrew says.

“We market to those attendees and we want them to know about the vibrant cultural opportunities available to them,” Renfrew says. “The Northern Lights are a big hit—even with visitors from Scandinavian countries because we tend to have fewer clouds in Fairbanks. Dog mushing, snow machine riding, and the Ice Art Championships are also huge draws.”

Explore Fairbanks’ level of involvement is based on the needs of the hosting organization, Renfrew says. Sometimes the organizer only needs help with promoting the activities in Fairbanks, but for smaller groups a greater need can include coordinating with venues and hotels for meeting space and guestrooms and being available throughout the whole meetings process.

“One of the reasons that Fairbanks is such a great place to have a meeting is the fact that stakeholder groups in our community work so well together, and it’s often a collaborative effort,” Renfrew says. “We want to do everything we can to help our planners and to make sure that our attendees have a fantastic experience while they’re here. It increases the possibility that they’ll be coming back or that our meeting planners will bring another group to Fairbanks.”

Hosting a Conference

Known as OCEANS ’17 MTS/IEEE Anchorage, the North American OCEANS Conference is cosponsored by the Marine Technology Society (MTS) and the Institute of Electrical and Electronics Engineers Oceanic Engineering Society (IEEE OES) through a local organizing committee. Bob Seitz is the general chair for the OCEANS conference taking place in Anchorage September 18-22, 2017.

The goal of the conference is to recognize, encourage, and support greater international participation in OCEANS conferences and to address issues faced by oceans in Alaska like climate change, diminishing Arctic ice pack, ocean acidification, and increased vessel traffic in Arctic waters. Next year marks the organizations’ first time to hold the event in Alaska, Seitz says.

Seitz has attended OCEANS conferences www.akbizmag.com

since the ‘70s, but this is his first time hosting and chairing an event to this scale, and he expects about one thousand attendees.

“When I began attending OCEANS conferences I was not attending them with the idea that I would be hosting a conference in the future, but you do gain an appreciation for the number of volunteers and the amount of organization that goes in to putting on a large conference like this—there are lots of parts and pieces,” Seitz says.

MTS/IEEE sponsors two OCEANS Conferences each year, one in the Americas in the fall and one international meeting in the summer. A well-organized group like the MTS/IEEE provides its chairs and hosting committees with an operational policy manual titled “How to Propose, Host and Conduct an OCEANS Conference.”

“The plan has proven to work and most of it is just filling in the blanks, but the primary thing to do next is to make it particular for the location,” Seitz says. “Then we need to find some patrons to help finance some of the planning and organizing efforts, which much be done before the first attendee can register.”

In order to allow IEEE OES to accept Anchorage as a destination for the event, Seitz first had to sell Anchorage as a tourist destination at an earlier conference with the help of Visit Anchorage.

“We had to sell the city as an attractive place to come to with plenty of activities and entertainment, and also to sell the fact that there’s enough ocean activity to build interest and bring the technical people here,” Seitz says.

Seitz took the approach to say that activity in Alaska’s waters is increasing, therefore providing promise of great interest in Arctic and sub-Arctic oceans in 2017. The OCEANS ’17 MTS/IEEE Anchorage conference will cover fishing, offshore energy production, oceanographic research, ocean acidification, and remote sensing, among others.

Meeting Benefits

The idea for an international meeting— along with any kind of meeting—is to bring together people on a shared topic and create a dialogue that will last long after the event is over, which is something that cannot be replicated in a teleconference, Renfrew says.

“Some of the things you get from any face-to-face meeting are the connections made, the networking, the brainstorming, the problem solving, and just the human connections where people can be together in a room face-to-face discussing relevant topics,” Renfrew says. “That type of a meetings-based brainstorming opportunity can really benefit the attendees as well as the focus of the meeting through honest and sincere discussion.”

R

Makeyour Meeting free

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special section

Conventions & Meetings

via Flickr Š Electronic_Frontier_Foundation (CC BY 2.0)

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Alaska Business Monthly | April 2016 www.akbizmag.com

Make Every Event

Secrets of Successful Meetings

Impressive with

Collaboration, bandwidth, and social media

By Susan Harrington

“C

ollaboration is the secret to successful meetings,” says Explore Fairbanks President and CEO Deb Hickok, adding: “It takes the whole community.” Fairbanks is a busy place with statewide, national, and international draw.

Explore Fairbanks is a catalyst for groups planning and hosting events in the city.

People continuously arrive in Fairbanks all winter long for the robust winter tourism and meetings season—the BP World Ice Art Championships; the international Arctic Science Summit; the North American Basketball Tournament; Doyon, Limited Annual Meeting of Shareholders; the GCI Open North American Sled Dog Race—to name a few of the events in March attended by thousands of people. Nearly every bed in town was booked— hotels, motels, B&Bs, lodges, cabins, spare rooms, dorm rooms.

And all those people need food, transportation, and event facilities amenities as well. It does take a community.

This month Fairbanks is host to the Alaska Rural Energy Conference and a few other events, left with maybe a tiny wedge of a shoulder season to regroup for the onslaught of more than a million summer visitors who will be arriving for both business and leisure.

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Number one secret to making it all work—collaboration. www.akbizmag.com

April 2016 | Alaska Business Monthly

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Connectivity Another secret to successful meeting is in the facilities themselves—connectivity in particular. The explosion of social media (another secret to success) coupled with the propensity for attendees and presenters alike to use multiple devices and platforms during meetings of all kinds has resulted in the need for greater WiFi bandwidth and carrier signal capacity.

How much bandwidth is available? Does the facility have the right wiring to accommodate big bandwidth? How big is that pipe? Gigabits? Terabits!? Is there redundancy? How many carriers are boosting signals at the event via rooftop portable towers or other IT marvels such as mobile hotspots for WiFi offloading? Is there a distributed antennae system? How many access points are scattered through the facility? What capacity is included with the facility fee and is it possible to pay more and get more?

How many phones, tablets, and laptops can be used simultaneously to watch videos, text, check emails, project PowerPoints and other prepared presentations, Skype speakers, teleconference, Google, engage in social media, upload, download, and otherwise connect before the system basically says, “Hey, you, get off of my cloud” and crashes.

Number two secret to successful meetings—connectivity.

Great events start with an amazing venue...

Valdez Convention and Civic Center Located in the heart of beautiful Valdez, Alaska, the Valdez Convention and Civic Center is the destination for meetings, conventions and gatherings. Come for business, but take pleasure in our hiking and skiing trails, all rich with wildlife. Often considered “ the best view in town,” the huge windows of the Center’s main hall overlook the Port of Valdez, a place where the mouintains meet the sea.

• 6,400 sq. ft. of Ballrooms • Conference Room • WiFi & High Speed Internet • Digital Theatre Complex • Commercial Catering Kitchen • Meeting Accessories

Our ballrooms elegantly decorated for a wedding–photo courtesy of Seed Media.

To discuss your meeting or convention needs, call Jennifer James, the Facility Manager at (907) 835-4440 or email at jjames@ci.valdez.ak.us

www.ci.valdez.ak.us/CivicCenter 90

Alaska Business Monthly | April 2016 www.akbizmag.com

Social Media

Another significant secret to successful meetings is social media.

Various social media channels are used to create buzz before the event; inform about local activities and amenities; register and check-in attendees; show off the event while it’s happening; engage audience participation during events; and generally share before, during, and after meetings and conventions of all sorts.

Twitter, Facebook, and YouTube are probably the most widely used social media avenues for events at this point in time; however, watch them losing market share to Gen Z and younger Millennials whose preferences (for now) are Instagram and Snapchat. This could be due to shorter attention spans and easier photo and video loading, plus greater user choice when it comes to content and ads. What is for certain, though, is social media is a fluid and evolving macrocosm of communications.

Number three secret to successful meetings—social media.

Successful Meetings

Get it together for those business get-togethers. Incorporate the secrets to successful meetings—collaborate with the community, get the right amount of connectivity, and use social media.

R Susan Harrington is the Managing Editor at Alaska Business Monthly.

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there is an element of fun.”

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Find big mountains and big ideas when you meet in the Mat-Su Valley.

Just 35 miles north of Anchorage. www.alaskavisit.com www.akbizmag.com

April 2016 | Alaska Business Monthly

91

REAL ESTATE

Lease Termination Tips for Commercial Tenants Numerous options are available

By Jeff Grandfield and Dale Willerton

C

onsidering where the Alaska economy is headed with the price of oil, you may be faced with terminating your own commercial lease. This process can be accomplished and it doesn’t have to be a nightmare for commercial tenants, although you could face numerous roadblocks.

Understand that, as business owners themselves, commercial landlords need good rent-paying tenants to fill their buildings.

Empty commercial units do not generate any income for a landlord. Therefore, negotiating that initial lease should come quite easily. Should you need to terminate your lease, however, things may not be quite as smooth.

As The Lease Coach, we have been coaching and consulting with independent and franchise tenants since 1993. Over the years, tenants have frequently asked us how to “break a lease.” Should the tenant continue to lose money? No. You have numerous options available that may or may not help you to terminate—perhaps with limited personal loss and damage. In no particular order, our professional recommendations are as follows:  Understand the language. In reading this so far, you will have likely noticed we have spoken of “terminating a lease” rather than “breaking a lease.” In the real estate industry, the term “terminating a lease” is preferred over “breaking a lease.” In the latter case, this suggests that you, the commercial tenant, are doing something which is both legally and ethically wrong. A tenant’s words, in fact, can set the tone for success or failure. We think of a quote from motivational speaker, Zig Ziglar who once said, “You can call your wife a kitten or you can call your wife a cat … you’ll get a different response.”  Talk to your landlord. The Lease Coach has been very successful in persuading the commercial landlord to take back the commercial space when the present tenant is struggling. The landlord can then re-lease the space. It is, in fact, to the landlord’s advantage to precipitate a vacancy by working in advance to find a replacement tenant. This allows the landlord to maintain cash flow. Instead of a conspicuous “Going Out of Business Sale” sign in a tenant’s window or a “For Lease” notice on the outside of the property, the public will see signage welcoming a new tenant into the property. A “Coming Soon!” or a “Grand Opening” sign is far more attractive.  Find a replacement tenant. Commercial landlords are more likely to be cooperative terminating your lease if a replacement tenant can be found for your space. The existing tenant will surrender the Lease Agreement and location back to the landlord. Commercial 92

tenants signing a Surrender Agreement can vacate the premises immediately or keep occupying the space until a new tenant is found. A new Formal Lease is drafted for the new tenant. The new tenant signs the new Lease Agreement and begins paying the rent.  Assign your Lease Agreement. Essentially, this means finding another prospective tenant to agree to take over your commercial space and current lease terms. If the person taking an assignment of your lease agreement has also purchased your business this is more acceptable to the landlord than if the Permitted Use is completely changing to a different industry. In this case, a secondary or replacement Formal Lease is not required; usually, a two or three-page Lease Assignment, prepared by the landlord, will be all the documentation required to get the job done.  Consider other vacant space within the same rental property.

Is there something more appropriate for your needs? Are you faced with excessive space? Can you downsize your operation?

With commercial rents being charged by the square foot, commercial tenants leasing less space typically will find the rent more affordable. A commercial landlord can be willing to free you from one leasing obligation should you remain in the landlord’s property. Downsizing is a common solution for a business owner struggling with paying too much rent. The problem, frequently, is that the business owner is not paying too much in rent but he/she has leased too much square footage.

Overall, commercial tenants should carefully consider these various options as well as their own situations prior to attempting to terminate a lease. Taking initial precautions prior to signing a lease are often best (such as having a Lease Consultant review the document for your own protection). If you have never gone through this before, it is reasonable to expect that you will need some help. R

Dale Willerton and Jeff Grandfield—The Lease Coach— are Commercial Lease Consultants who work exclusively for tenants. Willerton and Grandfield are professional speakers and co-authors of “Negotiating Commercial Leases & Renewals for Dummies” (Wiley, 2013).

Contact Willerton and Grandfield at 800-738-9202, dalewillerton@theleasecoach.com, or visit theleasecoach. com. For a complimentary copy of Willerton and Grandfield’s CD, Leasing Do’s & Don’ts for Commercial Tenants, email dalewillerton@theleasecoach.com.

Alaska Business Monthly | April 2016 www.akbizmag.com

Workforce Testing

HEALTHCARE

‘Improves the bottom line’

By Russ Slaten

M

edical-based occupational testing runs the gamut of healthcare management for industries as wide as oil and gas and transportation to fisheries and retail. Companies across the state offer onboarding exams, functional capacity evaluations, drug and alcohol testing, and federally-mandated exams like respirator fit tests and audiograms.

Alaska’s safety-sensitive industries like construction, oil and gas, mining, and transportation are heavily involved with workforce testing due to the nature of the work and regulations from federal entities like the Department of Transportation and the Occupational Safety and Health Administration.

Growth in Safety

Concerns for employee health and safety have grown beyond the safety-sensitive industries like mining and oil and gas to affect nearly all industries, in part due to a return on investment through properly addressing worker safety and health, says Dennis Spencer, director of medical services at Fairweather LLC. Fairweather LLC, an Edison Chouest Offshore Company, has provided medical support to the state’s natural resource industry for nearly forty years and currently provides services on the North Slope through the Fairweather Deadhorse Medical Clinic.

Making money and generating revenue is core to business, and utilizing an effective health and safety plan that includes workforce testing is a value-added approach to workplace efficiency, Spencer says.

“Incidents in the workplace and injured employees are expensive—exposing companies to liability along with the emotional and psychological costs for the employee and the employer,” Spencer says. “Companies have come around over the last few decades in seeing the value of taking a proactive role in ensuring their employees are healthy and safe before beginning work with post-offer exams, drug testing, or a mix of the two as well as periodic screenwww.akbizmag.com

Courtesy of Fairweather LLC

The Fairweather ambulance leaving the medical clinic ambulance bay at the Deadhorse Aviation Center.

ing of the workforce. Workforce screening—medical as well as drug and alcohol testing—improves the bottom line.”

Beyond simply identifying employees that may be unsafe in a specific job function prior to placement, good programs offer other benefits as well. For example, good drug and alcohol policies and procedures allow leaders to evaluate employees that may self-identify as needing help with addiction, and the policy would not only answer how to handle this disclosure but how to handle post-treatment surveillance.

This saves the most valuable resource most companies have, the people.

Identify Needs

Occupational health and safety firms provide medical and safety screening for companies in most all industries, and some even provide consulting services in the implementation of a new or updated health and safety plan.

Before establishing pre-placement or fit to work screening protocols, employers should know exactly what the physical requirements of the employee’s job tasks are and then be able to communicate that to the firm performing the medical evaluations, Spencer says.

He says employers can find value in examining the tasks performed by employees: “I know we’re going to produce a widget at the end of the day, but what does my employee have to do to get there? Does he have to lift a lot of boxes and heavy weights and

turn his body in strange positions?” These questions are basic to occupational health professionals, but Spencer says the process of evaluating an employer’s expectations and aligning those with specific process tasks can affect all aspects of administering an effective policy. Whether the screening is driven by company policy or regulatory guidance, it is important for employers to know what their goal is for testing.

Anchorage-based Beacon Occupational Health and Safety Services began providing services to Alaska companies seventeen years ago. Today the company provides health and safety testing and training for industries affecting most of Alaska, says Mark Hylen, vice president at Beacon.

The needs of each company are different based on the goals of the company, he says.

“The evolution of occupational health and drug and alcohol testing is really prevalent through almost all employers,” Hylen says. “Employers in the oil and gas industry will cover most all the testing, but I can’t think of one industry that is not doing at least some minimal level of testing, whether it’s just a drug test or a combination or drug test with physical.”

Occupational health pre-employment and annual screenings are typically driven by the employer through best practice, contractually-driven, or regulatory-driven standards, Hylen says.

Some businesses create a best practice screening panel to maintain a certain level of standards, for example many of the oil and April 2016 | Alaska Business Monthly

93

Courtesy of Fairweather LLC

Fairweather medical personnel administering a respiratory fit test at the Fairweather Medical Clinic in Deadhorse.

gas operators on the North Slope. Oil producers instill a large panel of tests for many of their workers to ensure a safe work environment and prevent unfit workers from being unnecessarily exposed to undue risk.

“Many companies ensure some level of screening because they’ve recognized over

94

the years that with no screening they may hire people screened out by other companies due to gross health conditions, failed drug tests, or any other reason,” Hylen says.

Subcontractors of the oil producers are contractually obligated to undergo testing to meet the requirements of working

for that oil company. In order to meet the requirements of the contract, the subcontractor employees may have to go through TB testing, a physical, other tests, and the panel of drug screen testing required by the contracting company, Hylen says.

Finally, federally-mandated testing covers the spectrum of OSHA’s asbestos physicals, HAZWOPER physicals, respirator mask fit testing, and audiograms; the US Coast Guard’s Merchant Marine physical; and the Department of Transportation’s CDL-related and aviation-related medical exams, Hylen says.

“The Department of Transportation and other federal entities have very specific drug testing requirements, so individuals have to be tested very stringently,” he says.

Over the years, Hylen says, Beacon has been able to tie-in occupational health, drug and alcohol testing, and Fit-for-Duty exams.

“We have three facilities in Anchorage,” Hylen says. “Individuals start with a drug screen, a physical exam with a provider, and then go to our Fit-for-Duty testing location where we provide one-on-one workplace simulation functional testing with a physical therapist.”

Incorporating those three aspects of testing allows employers to effectively screen for employees, he says.

Alaska Business Monthly | April 2016 www.akbizmag.com

“You need to remember some businesses are large, and then a whole lot of businesses are small and they just need guidance,” Hylen says. “We provide policy templates and guidance based on the outcomes they’re trying to achieve—federal requirements, new contract compliance, or best practices—we guide them based on their needs.”

Transparent Policies

Renee Schofield, CEO of TSS, Inc., or the Safety Specialists, began business more than fifteen years ago in Ketchikan. TSS began operations with federally-mandated workplace drug testing and has expanded to supply workplace drug test solutions that affect many of Alaska’s industries.

One aspect affecting all Alaska businesses is the legalization of marijuana. Although marijuana will begin to be sold in a retail setting, under the Department of Transportation federal guidelines, employers must adhere to a zero tolerance policy.

Non-Department of Transportation regulated companies also have certain protections and rights to ban the use of marijuana in the workplace.

Schofield says, no matter the case, a company should clearly inform employees of its policy regarding the use of marijuana to al-

low workers to understand the company’s expectations.

“It’s critical that everyone’s on the same page and knows what’s happening,” Schofield says. “The number one thing for an employer when a new regulation is introduced is first that you have a policy and that you’ve communicated it to your people—which can be as simple as bringing everyone in for a safety meeting and having them sign that they’ve received a copy of the policy.”

Transparency in an employer’s drug screening plan can help create a healthy discussion and understanding between the employer and employee, Schofield says.

Employees should understand the types of testing the company may deploy, in what types of instances testing will take place, and for which types of drugs the company is undergoing testing.

“In the event that the company ends up in a lawsuit, being able to say the company was transparent and vocal with its policy really shows that it went the extra mile to allow its people to understand the expectations [of a drug test policy],” Schofield says. “It’s also fair for the employees to be able to say, ‘I want to know where you stand on this,’ because employees may make different choices depending on the company’s policy.”

Beyond the clarity of a drug test policy, an effective policy should emphasize a safe work environment in which employees can work safely and return to their families without worry, Schofield says. The operation of a forklift or any heavier equipment affects more than just the driver, and it is essential for everyone in the same workspace not to be exposed to any undue risk.

Additionally, random drug testing programs allow employees to acknowledge when there may be problems and receive assistance, Schofield says. A company with an employee assistance plan allows an employee to self-report and receive the help or treatment needed to return to the workplace.

“We take care of people and that’s what we’re all here for; and formulating a perfect policy allows us to educate people to be their best selves.” Schofield says. “Most of us have good relationships with the ones we are around daily, and a well-placed plan provides an opportunity for someone to say, ‘I need some support and I hope that I can get it here.’ It may allow a person to get into treatment when they may not otherwise have access or provide an avenue of where to go next.”

R Russ Slaten is an Alaskan writer.

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April 2016 | Alaska Business Monthly

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CONSTRUCTION

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Alaska Business Monthly | April 2016 www.akbizmag.com

Designing Open Concept Offices in Anchorage Stantec showcases interaction at CIRI’s Fireweed Business Center

By Rindi White

C

reating a comfortable and efficient workspace that fosters creativity, embraces natural light, and reflects a company’s mission is no easy task. But the potential payoff—more opportunities for in-office collaboration, better employee retention rates, and the ability to attract motivated new workers—may be worth it.

Stantec senior principal Tim Vig, PE, and principal Lydia Griffey in the firm’s new office within the Fireweed Business Center. Stantec’s offices are on the second floor of the eight-story CIRI-owned building, with a view to the lobby.

Photos courtesy of Stantec / Chris Arend Photography

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April 2016 | Alaska Business Monthly

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Photo courtesy of Stantec / Chris Arend Photography

The new Stantec Anchorage office includes multiple collaboration spaces and three conference rooms, including one near the reception area, Q’Eylu Conference Room, where Emma Kelly, left, and Cheryl Jemar are meeting. The conference rooms are named after birch, willow, and spruce trees in the Dena’ina language.

According to a December 18, 2015, story in “Fast Company,” a business magazine that focuses on technology, business, and design, top trends in office design include: bringing the outdoors in; using design tools to hide electronic wires and “declutter” a space; getting rid of offices and assigned desks in favor of multi-purpose space useful for deskwork and meetings; designated lounge areas that allow workers to move to a more comfortable environment for some tasks; organizing offices with pops of color; utilizing community tables that encourage collaborative workspace; using a mix of textures in floors, walls, and ceilings; and building flexibility into the floor plan by using modular components.

“Workspaces should flex to provide a variety of spaces and destinations for workers to inhabit that promote movement throughout the day,” states Joan Blumenfeld, a principal at national design firm Perkins + Will in the Fast Company article.

Engineering and design firm Stantec hit all of those markers when creating its new space at Cook Inlet Region, Inc.’s (CIRI) Fireweed Business Center.

First Tenant

Stantec senior architect Dale Smythe, right, and environmental engineer in training Owen Haskell discuss a project at the coffee bar in the new Stantec office in the Fireweed Business Center, 725 East Fireweed Lane. The coffee bar is one of several collaboration spaces that Stantec designed into its new office.

Photo courtesy of Stantec/ Chris Arend Photography

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Stantec in January moved into the second floor of the new office building at 725 East Fireweed Lane, the location of the former Fireweed Theater. Stantec is CIRI’s first tenant in the eight-story, 110,000-square-foot building. CIRI offices occupy the majority of the top three floors of the building.

Stantec, which merged in 2014 with USKH, was formerly located about seven blocks away at 2515 A Street. Jessica Cederberg, a senior architect with Stantec and the lead designer on the new office space, says the company wanted to stay in Midtown, but wanted to update its space.

“The Fireweed Business Center was raw space that we could design to reflect Stantec’s standards, such as more opportunities for collaboration, promote healthy, active lifestyles, and [bring in more] natural daylight. The views of the six mountain ranges are an added bonus,” Cederberg says.

Tim Vig, senior principal at Stantec, says moving is costly when including the cost of new furniture and the process of moving itself. But he’s already seeing benefits.

“We’ve only been in the new space for a few weeks, and in that time we’ve seen people working together more and collaborating on their projects. The brighter and more modern space will also help us in recruiting and retaining the best talent as we work to grow our business,” he says.

Smaller Is Better Here

Stantec spent two months in design and four months building its new office space,

Alaska Business Monthly | April 2016 www.akbizmag.com

Photo courtesy of Stantec/Chris Arend Photography

From left, Stantec principal Steve Kari, senior design technician Marilyn Hidalgo, and GIS technician Cindi Pannone consult on a transportation project in the civil engineering “neighborhood� of the new Stantec office. The office has an open floor plan, and the neighborhood design eliminates the sea of cubicles common in many offices.

www.akbizmag.com

April 2016 | Alaska Business Monthly

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using Davis Constructors & Engineers, Inc. and a design/build process. Vig says the target move-in date never changed from the original plan set in fall 2015.

Stantec’s former office space was about 18,500 square feet. The CIRI building is about 5,000 square feet smaller, but it’s all on one floor. That’s important, Cederberg and Vig say.

“Being on a single, 13,500-square foot floor in the new space was an important factor in choosing this building,” Vig says.

“We wanted to avoid internal stairwells and not duplicate functions that are required when occupying multiple smaller floors.”

Cederberg says the new space also has fewer corridors, copy rooms, and break rooms. In designing the space, she says she wanted to not only better utilize the square footage, but wanted to purposefully create “collision zones.”

“These are spaces that encourage ‘driveby’ meetings such as our new coffee bar with a café booth. One example of the value of these ‘casual’ meeting spaces is in the design of our rural school projects, which requires all disciplines to interact on a regular basis. Instead of only formal meetings, we have the ability to have a quick conversation about the project when we run into a

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colleague in the library or at the coffee bar,” Cederberg says.

The company also took a step toward encouraging healthy, active lifestyles by providing shower facilities with small locker rooms, she says. The Fireweed Business Center is near the Chester Creek Trail, so employees can get out at lunchtime or use the trail to travel to and from work, for example.

The office space includes height-adjustable work surfaces, so an employee can stand or sit as they choose throughout the day. All interior partitions are kept to forty-two inches high to allow natural light to filter into the core of the office space. CIRI designed the building with dynamic windows that tint automatically to reduce glare and improve energy efficiency.

“The large windows that allow natural light into the space are one of the best features of the new space,” Vig says. “Being able to control the amount of light by controlling the tint on the windows gives us the best of both worlds.”

The few private offices in the space are located in the center of the building. Aside from the few enclosed offices, workstations are divided into work “neighborhoods,” a modern alternative to fields of cubicles.

Each neighborhood has a coat closet, collaboration table with built-in storage, and sound masking, Cederberg says.

“Our new space offers an open floor plan, which we believe will make our coordination much more efficient. It will truly benefit our employees and ultimately our clients,” Vig says. “However, minimizing noise distractions in this space was important.”

The company uses sound masking—or background white nose—to raise the level of ambient noise and thereby decrease awareness of distracting noises in the office environment.

Stantec also included two “private phone enclaves,” small rooms with lounge seating and small tables, where employees can make a more private phone call. Small meeting rooms provide another privacy alternative for client meetings or team meetings.

Style and color are a part of any design, and Cederberg says she designed the space to be timeless and to reflect the company’s talents. Stantec’s corporate colors are orange and red, so while grey is a common color throughout the floor, chair backs, lounge areas, and other seating include pops of red, tangerine, and lime. The team included wood ceiling accents to reflect wood accents used in the lobby of the building and finished its locker rooms in identical tile and flooring to that used in the rest of the building.

“The design of the new office represents Stantec’s image and brand, and it also represents the company’s commitment to Anchorage and the communities we serve,” says Vig. “We’re including a ‘legacy wall’ of items like

Alaska Business Monthly | April 2016 www.akbizmag.com

The new Stantec office in the Fireweed Business Center was designed with collaboration in mind. Interior partitions are limited to forty-two inches high to allow natural light to filter to the core of the building. Architect Jessica Cederberg (standing) consults with office coordinator Josh Huettl and project administrators Chelle Trexler (seated left) and Judy Crampton.

photographs and awards in the new space to help remind our staff and our clients of our past as we look forward to the future.”

Design Fits Building Theme

Chad Nugent, CIRI’s vice president of real estate, says as a landlord, CIRI generally stipulates design guidelines for office tenants. But since Stantec works in the design field, “we let them do their own work and just made sure it fit within that design,” he says.

The company used Davis Constructors to do the construction needed. Davis also built the building, so sourcing items like doorknobs and flooring to match the rest of the building was simple. Nugent says the process of setting Stantec’s offices up was pretty easy. That’s not always the case, he says.

“Normally, when you build out a building, you give tenant allowances, as an owner. Everybody has an interest as far as what’s happening in a building. If anyone in a building wants to modify the space, they have to come through us,” he says. “It was nice to have a tenant that really understands the process.”

Stantec worked with Capital Office to design the space and find quality office furniture to meet the company’s needs. Devon Matricardi, a workplace consultant with Capital Office, worked on the project. She says while Stantec came to her with clear ideas and goals, Capital

Photo courtesy of Stantec/ Chris Arend Photography

works with many clients who aren’t naturally design-minded to come up with efficient floor plans and appealing office furniture.

Matricardi says Capital works to design office space with the client present, so the customer is part of the collaborative process. It cuts down on sending floor plans back and forth via email, she says.

Some key ideas the company touches on when talking with clients about office design include attracting and retaining employees by creating workspaces that people want to be part of and giving employees power and options, such as exchanging a private office for a more public office space that has better features. Real estate optimization, or getting the most out of a company’s office space, is another key point when

designing or redesigning an office, she says.

With the current trend toward open concept offices, Matricardi says team collaboration is a clear benefit, but her firm also works to include private spaces such as those Stantec uses—phone booths, small meeting rooms, and one-person work lounges designed to create a distraction-free, comfortable space for a single employee to work.

“There is that need for people to be able to do focused work in an open floorplan, but the savings and attraction of a younger workforce [through open-concept design] is better,” Matricardi says.

R Rindi White is a freelance journalist living in Palmer.

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TECHNOLOGY

UAF scientist develops airborne measurement system

© Dr. Matt Nolan

Fairbanks Fodar is ‘Ideal for Mapping Changes’ Kit DesLauriers led an effort to directly measure the elevation of Mount Isto and Mount Chamberlin using GPS. Dr. Matt Nolan led the effort to map these same peaks within a few days of the climbs using airborne fodar. This image shows the climbing team’s GPS tracks overlaid onto a 3D visualization of fodar data of Mount Isto.

K

measurement. Then Nolan climbed into his small airplane and flew over the mountains, taking pictures with a Nikon camera mounted on the bottom of the plane, which is also hooked up to a professional-grade GPS. When he returned to the ground, he compared his readings to those taken by DesLauriers. They matched to within a few centimeters, showing Mount Isto is the highest peak in Alaska’s Arctic at 8,975 feet.

While waiting for a flight in Coldfoot, DesLauriers bumped into Matt Nolan, a UAF (University of Alaska Fairbanks) scientist who has been studying the Brooks Range glaciers since 2003. She told him about the USGS discrepancy and they hatched a plan to solve the puzzle.

Nolan is a camera buff who has experimented with various types of large-format photography and other methods to measure the volume of McCall Glacier over time. The year before DesLauriers brought the IstoChamberlin discrepancy to his attention, he had started developing an airborne measurement system. Solving the peak problem would be a good test of the efficiency and accuracy of his system, and it would add to the scientific knowledge of the Brooks Range.

DesLauriers climbed both mountains with a GPS receiver to serve as a ground

To measure the peaks, Nolan used an innovative remote-sensing program he calls fodar, a compound of “foto” and “lidar.” (It’s not an acronym and it’s not capitalized, he says.) Nolan created it as a way to inexpensively and accurately map such things as snow depth, glacial volume, erosion, and infrastructure. He uses the system to create topographic maps that he can then layer and compare to note changes in the landscape as small as five to fifteen centimeters.

It’s similar to Lidar, which uses lasers to measure distance, he says, but it’s much less expensive and the results are equally accurate. And, it generates actual photos of the area being mapped, which are also useful for comparisons.

Here’s how it works: Nolan mounts a professional-grade digital single-lens reflex Nikon camera to the bottom of his plane, pointing toward the ground. The camera is attached to a device that takes a photo at set intervals. It is also hooked up to the GPS. Every time the shutter is triggered, it puts a marker on the GPS so Nolan knows exactly where and when the photo was taken in all three dimensions. He runs an overlapping grid pattern over the area he’s mapping so

By Julie Stricker it DesLauriers had a problem.

The adventurer, known for being the first person to ski down the highest summits on all seven continents, wanted to ski the highest peak in the western Brooks Range, but she wasn’t sure which mountain was tallest. In the 1950s USGS (United States Geological Survey) made two maps of the region with different scales. One showed Mount Isto was the tallest; the other pointed to Mount Chamberlin. The difference was about fifty feet.

Puzzle Solving

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Innovative Remote-Sensing

each photo has several points of reference with the adjoining pictures.

When he gets back on the ground, he runs the data cloud generated by the images through a program that includes a structurefrom-motion (SfM) algorithm, which renders them into 3D topographic maps or digital elevation models and orthoimages. The result is survey-grade SfM photogrammetry. Using the SfM program allows him to adjust for a whole range of values, in 3D, a step forward over traditional still-image photogrammetry.

“It’s ideal for mapping changes over time, especially natural changes,” he says. Lidar is often used for the same thing, but with a substantially higher price tag. Nolan says he can photograph a site and process the data at a fraction of the cost and much faster than Lidar because his system doesn’t require specialized gear.

“Everything is off-the-shelf,” Nolan says, although he says he did have to write some additional software code. Lidar uses specialized machinery that alone can cost upwards of a million dollars.

Processing Accuracy

Rendering the photos takes an enormous amount of processing power, Nolan says, opening a drawer in his home office a few miles from the UAF campus and pulling out a couple of hard drives that each hold several terabytes of storage. At his feet, two tall black and silver servers hum softly and emit waves of warm air as they process another recent project. “I have to keep the windows cracked, even in winter, because it gets so hot in here,” he says.

In an attempt to show fodar’s accuracy, Nolan started photographing the airstrip at

Alaska Business Monthly | April 2016 www.akbizmag.com

The Kongiganak drape is a visualization of the image draped over the terrain in real color. It’s called an orthophoto. It’s created from data put into a spreadsheet with cell values representing the color of the terrain.

It differs from a regular photo in that the perspective of every pixel in the orthophoto is as if the airplane was directly over it—thus you should not see the sides of buildings in an orthophoto, only the top of them. In this way, the relationship between the physical distance and cell distance at any point in the orthophoto is constant, and this constant is called the map scale.

The Kongiganak slice is a Digital Elevation Model that uses essentially the same data, but it’s colorized to show the elevation of the objects on the ground using color instead of contour lines. Kongiganak is in Southwest Alaska on Kuskokwim Bay. Photos © Dr. Matt Nolan

the East Ramp of Fairbanks International Airport that the small airplanes use. He figured the airstrip would be stable and he would be able to stack the photos on top of each other and detect any differences. He estimated a five-centimeter difference, at most.

It didn’t quite work out as planned. “What it showed me was that everything is moving,” he says. The result instead is an uncannily clear view of the bumps, dips, and cracks in the airstrip.

“See this little bump here,” he says, pointing to a spot at the far side of the runway that measurements show is a few centimeters high. “I always try to take off when I reach it.” Other measurements show how a patch of darker pavement moves differently from the lighter portions in response to sunlight and air temperatures. He can even measure the height of a patch of snow.

While he has taken off and landed from East Ramp dozens of times, Nolan has only been a pilot for three years.

“I got my pilot’s license because I had these projects to do,” he says. “I went out and got my license and went ahead and got my commercial rating, bought a plane, and drilled a hole in it for the camera.”

Mapping Villages Last summer, Nolan mapped twenty-nine www.akbizmag.com

villages along Alaska’s Bering Sea coast for the state of Alaska.

“The last time the coast was mapped was before statehood,” he says. “We’re so far out of compliance with FEMA regulations for such things as planning for storm surges or tsunamis.” He spent forty days mapping the coast between Wales and Bethel, flying 14,262 miles, taking 128,502 photographs, and mapping 94 percent of the coastline.

Bad weather kept him from finishing the last few areas, which he plans to do this summer.

Photos from the survey show the layouts of the villages, the relative elevations of the nearby landscape, even the driftwood on the beaches.

While waiting out bad weather one weekend in Unalakleet, he devised a program that showed what would happen if a storm surge up to four meters high hit the town, one of the largest communities in the region with a population of about seven hundred. A onemeter surge showed little impact. A threemeter surge flooded low-lying areas of town, but major roads and the airport were still dry.

“You can tell they’ve planned for that,” Nolan says. Other villages aren’t as fortunate. Shaktoolik, which sprawls along a narrow spit only a few feet above sea level with Norton Sound on side and a river on the other, would be inundated.

State and federal officials need to know this kind of information so they can plan in the event of storms and climate change, he says.

Mapping Climate Change

Fodar is also a useful tool to map long-term effects of climate change—such as shrubby growth in the Arctic, the development of thermokarsts in the Noatak Valley, and coastal erosion—and their effects on Alaska’s infrastructure.

This summer, Nolan plans to use fodar to map the Denali Park Road, paying particular attention to an area that is prone to landslides. He will also map the Dalton Highway and Sag River on the North Slope, the site of disastrous flooding in 2015. Fodar is also a critical tool in Nolan’s continuing work with McCall Glacier in the Brooks Range. He is using fodar to measure how much volume the glaciers are losing, as well as the effects that loss is having on north-running rivers, which support fish and migratory birds.

At the end of her Brooks Range expedition, DesLauriers wrote in a blog post that she asked Nolan if the age of exploration was over.

He answered, “It’s only just beginning.” R Julie Stricker is a journalist living near Fairbanks.

April 2016 | Alaska Business Monthly

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special section

Mining

Alaska Mining Industry Outlook—2016 Still an attractive investment in bull market

By Curtis J. Freeman

S

ome years back I heard Alaska Mining Hall of Famer Ernie Wolf say that a pessimist was an optimist with experience.

Unfortunately, “experienced optimists” are in over-supply in the mining industry right now, both worldwide and here in Alaska, as the global mining industry enters its fifth consecutive year of depressed commodities prices, lackluster corporate financial performances, and a disinterested investment climate. Experienced optimists from all over the world suggest 2016 will be much like the last few years, with SNL Metals & Mining’s Mark Fellows going a step further, suggesting the current bear market for metals has another two years to run its course.

Fellows compared the 1997-2004 mining sector crash to our current crash, which started down in earnest in 2012. He found that for the current crash, annual total sustaining and expansion capital expenditure declined by 30 percent by the end of 2015.

Perhaps more bothersome, metal prices have fallen 12 percent more than they did during the 1997-2004 cycle, and, with few exceptions, that down trend does not look like it has any intention of stopping in the near term. Even counting gold’s admirable $150 rise so far in 2016, all of the metals that contribute toward Alaska’s more than $3 billion gross metal value, including zinc, lead, gold, and silver, are languishing at or near multi-year lows.

An Imminent Correction

Until 2015, the gloomy picture painted in the previous paragraph appeared to be at odds with mine production figures from around the world which indicated that total metal mine production levels remained at or near all-time highs. This apparent dichotomy was just that: total mine production had slowly ramped up as part of a decade-long mine expansion period.

This increased capacity was designed to supply a long-term China-centric metals bull market sometimes referred to as the “Super Cycle.” When the super cycle turned out to be anything but “super,” mining operations found themselves producing at dramatically expanded levels but selling at progressively lower commodities prices.

A correction was imminent, and by early 2015 the mining industry had started to respond with mine shut-downs or reductions, either voluntary or forced by market conditions, in order to adjust to both falling commodities prices and sinking demand.

Alaska’s Mineral Industry

What does all this mean for Alaska’s mineral industry over the next year? For starters it means that in the short term we should expect little or no interest coming our way for projects that are more expensive to explore and/or mine because of challenging access or 104

infrastructure, unfavorable environmental settings, difficult metallurgical processes, or low average metal concentrations, among other things. It also means that in this buyer’s market, sellers may have to lower their front sights a bit in order to attract new investment capital to the Alaska mining sector. In addition, with over three-quarters of Alaska’s historic exploration funding originating in Canada, Alaska projects need to be significantly more attractive than their Canadian counterparts to counteract the dismal Canadian dollar exchange rate and the substantial tax incentives offered to Canadian investors that invest in Canadian projects.

An Attractive Investment

In the face of these headwinds, Alaska remains an attractive investment destination for the mining industry. Perhaps most important, Alaska’s mineral endowment is both enormous and varied, ranging from precious metals like gold, silver, platinum, and palladium, through base metals like copper, lead, zinc, and molybdenum, to critical and strategic metals like dysprosium, graphite, tin, tantalum, and cobalt.

Alaska also is undisputed elephant country, a place where world-class mineral deposits are being discovered, mined, and developed. And Alaska is embarrassingly underexplored; it is more likely to find an unattended elephant here than most other places on the planet.

Alaska has a stable, pro-development government that manages about 100 million acres of prospective state lands. The Alaska Native Claims Settlement Act was signed into law more than forty years ago, allowing indigenous land owners and the mineral industry to develop an envious working relationship on an additional 44 million acres of private land, a mutually beneficial relationship that few other jurisdictions enjoy.

Putting it all on the balance, it is easy to be optimistic about the future of Alaska’s mineral industry, even if you are experienced. R

Curtis J. Freeman, CPG #6901, is head of Avalon Development Corporation, PO Box 80268, Fairbanks, AK 99708.

Phone: 907-457-5159.

Fax: 907-455-8069. He can also be contacted by email at avalon@alaska.net or found online at avalonalaska.com.

Alaska Business Monthly | April 2016 www.akbizmag.com

MOTION & FLOW CONTROL PRODUCTS INC. Passionate about solving customers’ problems

M

otion & Flow Control Products (MFCP) may be a relatively new name in Alaska, but the brand represents decades of local expertise.

When MFCP acquired Jackovich Industrial and Construction Supply in October 2013, it gained four Alaska locations— two in Anchorage, one in Wasilla and one in Fairbanks—and an experienced staff with the same product lines and mindset. Jackovich, a full-service distributor of Parker hydraulic hose and fittings, construction equipment and Stihl products, had been serving Alaskans for more than 40 years.

“We know what it takes to make equipment function in 50-below weather,” says Dennis Thies, a long-time problem solver who had worked for Jackovich for 31 years and currently manages MFCP’s Fairbanks location. “We’ve been keeping our customers’ equipment up and running in Alaska’s harsh environment since 1969.”

EXTENSIVE RESOURCES The extensive experience combined with the broad knowledge and technology skills of Littleton, Colorado-based MFCP gives Alaska’s mining, military, logging, commercial fishing, and oil and gas industries access to vast expertise, capabilities and products from leading manufacturers like Parker-Hannifi n and Dixon Valve. MFCP offers one-stop shopping for hydraulic and pneumatic products from more than 100 manufacturers at 27 locations

in the United States. Its products include hydraulic and pneumatic connectors and valves, hoses, hose fittings and hose assemblies, sealing products, instrumentation fittings and valves, hydraulic and pneumatic components, lubrication products, and hydraulic filters.

Additionally, MFCP offers a full engineering staff, design and building services and a hydraulic repair facility in Colorado.

With more than 280 employees, MFCP represents the consolidation of six firstgeneration, family-held businesses in the same product lines and with the same winning attitude and vital regional bestin-class brands.

KEYS TO SUCCESS Expansion has been integral to MFCP’s success, according to Marketing Manager Peter Grimes. The company has been able to capitalize on its size and niche expertise to be able to offer the best depth, breadth and competitive pricing to customers across many industries. “Our size alone gives us such leverage to buy so many great brands and at a competitive pricing structure,” Grimes explains. “We are not a catalog house; we know the specifics of every one of our 87,000 SKUS.” MFCP’s size also enables it to remain on the cutting-edge of IT, providing aboveand-beyond service, electronic invoices, and communication tailored to customers’ needs.

–

PA I D

A DV E R T I SE M E N T

–

MFCP is a customer-focused industrial supplier that leverages its products, knowledge and services to solve various problems related to fluid power. The company’s commitment to customer service is deeply rooted in the six family businesses that shaped MFCP. In most cases, the expertise, knowledge and first-generation ownership of these individual companies is still actively at work in MFCP today, with Grimes—whose company was acquired by MFCP—being a prime example.

“It’s my unrivaled passion to solve customers’ problems,” Grimes says. “That ideal is the core value of the company.”

To better serve Alaskans, MFCP has refurbished its retail stores, warehouses and expanded inventory. MFCP will continue to grow and improve on the current facilities and capabilities to further enhance the value it provides customers. Future plans also include expanding ISO 9001 certification beyond its Littleton headquarters. “We are looking to expand ISO 9001 across all other branches of the company,” Grimes says.

MOTION & FLOW CONTROL PRODUCTS INC.

MFCP Anchorage Jay Higgins, Post Road Manager 1716 Post Road Anchorage, Alaska 99501 907-277-1406 mfcpinc.com

special section

Mining

Pogo Mine’s Tenth Anniversary First leg of a long journey

By Julie Stricker

O

n February 12, hundreds of Fairbanks residents who stopped at a local coffee stand got a surprise: free coffee. Specifically, 891 people received the treat, courtesy of Pogo Gold Mine. The date and number are significant: February 12 is the tenth anniversary of the date Pogo poured its first bar of gold. It weighed 891 ounces.

The coffee was a way to say thank you to the community, says Pogo External Affairs Manager Lorna Shaw.

“It was a big hit,” Shaw says. “We didn’t advertise it beforehand. What we were hop-

106

ing to do was have a nice surprise, a thank you. There’s no way Pogo could be in production today without the support of Fairbanks and the other communities, like Delta.”

In return, Pogo employees have donated nearly a million dollars to community organizations, and the mine has spent hundreds of millions of dollars on operations and exploration over the past decade. It employs about 320 workers year-round, in addition to more than 100 full-time contractors.

First Milestone

The 2006 gold pour was the first milestone in what was estimated to be a ten-year journey for the underground mine northeast of Delta Junction. As it turns out, it was just the first leg of a journey that shows no sign of coming to an end any time soon, Shaw says.

“Originally, the life of the mine was only about ten years, but we’ve got a long future in front of us,” Shaw says. “Our permits only go through 2019, but both of the last two years we’ve spent $15 million per year on exploration. The geologists, well, they’ve struck gold.”

Since that first pour, Pogo has produced more than 3 million ounces of gold. The mine, owned by Japan-based Sumitomo Metal Mining and Sumitomo Corporation, is located thirty-eight miles northeast of Delta and eighty-five miles east southeast of Fairbanks in the Goodpaster River valley. It’s an area that saw little mining before exploration in the 1980s uncovered rich mineralization zones. Further mapping has expanded those resources even more, Shaw says.

“They’ve had an incredible few years,” she says. “We’ve got a large land block that

Alaska Business Monthly | April 2016 www.akbizmag.com

Dave Brottem, underground miner and Pogo Pioneer, has been with the company working on the underground construction crew since 2006.

Courtesy of Pogo Gold Mine

An underground loader, also called a mucker, moves material underground.

Muckers load fiftyton underground haul trucks with ore to be taken to the ore bin for transportation by conveyor in the blue tube to the surface for processing in the mill.

Courtesy of Pogo Gold Mine

we can explore, but they’re focusing on areas right near the mine and they’ve struck gold nearly every time.”

The new finds don’t mean Sumitomo is in a hurry to enlarge the mine and work force, Shaw says.

“The Japanese culture in general takes a much longer view of things,” she says.

“We’re not nearly as reactive to the price of gold as North American company would be.

Not that the price of gold doesn’t matter, but North American companies may be more likely to buy more trucks and expand operations to convert that gold into assets faster.”

Sumitomo takes a long view on investing in the mine, Shaw says. “As they’re making investment decisions, it’s less about today’s price of gold than about the long term.

When we do budgets, we do three-year budgets.”

It’s a perspective Pogo workers appreciate. www.akbizmag.com

April 2016 | Alaska Business Monthly

107

Pogo Pioneers

“One thing that I think is really incredible is of the 320 people, 55 have been there since 2006 or earlier,” Shaw says. “I’m calling these folks our Pogo pioneers.” One of those pioneers is Chris Kennedy, who started eleven years ago as a maintenance manager and has worked in nearly every department at the mine. Today he is general manager.

“I learn something new every day,” he says in a short video commemorating Pogo’s tenth anniversary. Over time, the workers have become family, he says. Because the mine is so remote, workers have rotating multi-day shifts and live in a camp on the property. And because they’re like family, keeping each other safe is a high priority.

“It’s like a little city out there,” Shaw says. In addition to the mining and mill operations, Pogo has housing and food for workers, a water treatment plant, a fire department, and medical services.

“The focus on safety is incredible,” Shaw says. “When folks are at work, that’s really their family. That’s the person they’re going to have dinner with. Everyone is always looking out for each other. We all take care to make sure everyone stays safe.”

In 2015, Pogo achieved two years and forty-five days of work without a lost-time injury, which is an exceptional achievement for an underground mine, Shaw says.

“Then there was an ankle injury and we had to start the clock again.”

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Exploration to date has identified five mineral deposits: Liese Zone, North Zone, East Deep, South Pogo, and 4021. The Liese Zone was the first to be mined and is still in production. Two years ago, East Deep also came online. It’s proven to be a high-grade deposit, with between 0.35 and 0.45 ounces of gold per ton of ore. By comparison, Kinross’s Fort Knox gold mine near Fairbanks averages about 0.025 ounces per ton.

“Even our low grade is pretty highgrade,” Shaw says.

The mine includes more than nine hundred miles of underground roads, some as deep as one thousand feet. Workers drill or blast to release the ore, load it into trucks, and drive it underground to an underground ore bin. A conveyor belt transports it to an aboveground bin, where it is moved to the mill, which can process 3,500 tons of ore daily.

The ore is high in sulfides, which requires a multi-step milling process, Shaw says.

The ore is first ground into fine particles. Then about a quarter of the gold is recovered the old-fashioned way, by grav-

Alaska Business Monthly | April 2016 www.akbizmag.com

Chris Kennedy, Pogo General Manager.

ity. Think of an oversized sluicebox or gold pan.

The rest is recovered using flotation methods in which chemicals are used to separate the gold, which is then recovered via a leach circuit or a carbon-in-pulp process.

Pogo separates its tailings. Those that haven’t been exposed to cyanide are dried and trucked to the dry stack tailings area.

The rest are put through a process to destroy the cyanide, then mixed with cement and used to fill in areas that have already been mined, Shaw says.

New Challenges

The passage of time brings some new challenges. Since the mine facilities were designed with a ten-year lifespan in mind, Shaw says Sumitomo is taking a close look at the infrastructure.

“I think you will see some investments,” she says. “The mine was built for a ten-year mine life and we’ve achieved ten years, so we’re looking at some of our infrastructure.

It’s lasted ten years; will it last another ten years or do we need to make some changes?”

Treating water at the mine is a big project, Shaw says. All water used in the mining process, as well as all the rain and snow

Courtesy of Pogo Gold Mine

that falls on the mine site, must be treated before it can be released. Some very rainy summers have left Pogo with an overabundance of water, much of which was diverted underground until it can be treated, Shaw says. Roughly a third of the mine is full of water.

Currently, Pogo is discharging about six hundred gallons of treated water per minute and is seeking permits to raise that to eight hundred gallons per minute. Pogo recently built a third water treatment plant at a cost of $18 million.

“There’s a lot of clean, high-grade ore in the Liese Zone that’s underwater right

now,” she says. “We have about 48 million gallons of water underground that we still need to treat. That’s going to take years for us to be able to treat and discharge.”

In the meantime, mining at Pogo will continue, as will exploration to help delineate the reserves. Shaw says Pogo has a $7 million exploration budget this year.

“We’d like to be able to fill in some more and convert some of those resources to reserves,” she says.

R Julie Stricker is a journalist living near Fairbanks.

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16-02-26 April 2016 | Alaska Business Monthly

5:18 PM 109

special section

Mining

Innovations in Arctic Mining

Courtesy of NovaCopper, Inc.

Engineers address challenges

By Russ Slaten

T

he Arctic is often described as unforgiving, remote, frozen, and extreme.

Weather conditions present a particular set of challenges when it comes to working in the Arctic, but with engineering innovations some of those challenges have been addressed to bring opportunities to Alaska’s mining industry.

Quality to Outset Costs

Arctic geology, particularly in Alaska, is structurally complex, says Richard Hughes, a principal at H2T Mine Engineering Services LLP. “It hosts a lot of measured deposits like Red Dog, the Ambler copper districts, and the Fairbanks gold districts,” Hughes says.

“Alaska in fact has one of the largest coal resources in the world. It has more energy stored in coal—which probably won’t be mined for a long time—than almost the entire Lower 48.”

Although there is an abundance of minerals in Alaska, Hughes says Alaska is a difficult place to conduct exploration and to understand geology.

110

NovaCopper’s Bornite camp in September 2012. Bornite is a copper deposit with cobalt and silver in the Ambler mining district. Bornite is one of two Upper Kobuk Mineral Projects and is on land owned by NANA Regional Corporation.

“The state is covered by a wind-blown silt called loess,” Hughes says. “It masks a lot of the surface geology and makes it very difficult to do geologic mapping to find and clearly understand the mineral occurrences.

Companies have to rely on geophysical and geochemical techniques which oftentimes provide an expression of potential mineral activity and environmental occurrences.”

The challenge of exploring for mining opportunities—along with the geology— is the remoteness, Hughes says. Air travel in the summertime is sometimes the only viable means of transportation due to the lack of a road system in the Arctic.

Hughes says Alaska coal is cleaner than coal in the Lower 48. Low sulfur content limits the emissions of sulfur dioxide into the atmosphere, he says. Additionally Alaska mines are typically at a higher grade than most mines in the Lower 48.

“Higher grade deposits make the cost per unit of metal production lower, which is not necessarily an attribute of the Arctic environment, but it takes a higher-grade deposit in a difficult environment to develop an area like Alaska to support a viable project,” Hughes says. “There really is nothing unique about mining in the Arctic,

it’s just the extremes of conditions that the Arctic miner must deal with.”

Ambler Mining District

The Upper Kobuk Mineral Projects are a consolidation of the mineral interests of NovaCopper, Inc. and NANA Regional Corporation in the Ambler mining district just north of the Arctic Circle. The Upper Kobuk Mineral Projects consist of the Arctic deposit located on state of Alaska mining claims owned by NovaCopper and the Bornite deposit located sixteen miles southwest of the Arctic deposit on NANA-owned lands. Arctic is a polymetallic deposit made up of highgrade copper-zinc-gold-silver while Bornite is primarily a high-grade copper deposit with minor cobalt and silver as well.

“The two projects are quite synergistic in that they may be able to share infrastructure, which is certainly something that is part of our long-term vision,” says Rick Van Nieuwenhuyse, president and CEO of NovaCopper. “We are well financed, although the downturn in the market has led us to take a focused approach by moving forward with the Arctic deposit first, the higher grade of the two deposits—which is a 6 percent copper-equivalent deposit.”

Alaska Business Monthly | April 2016 www.akbizmag.com

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111

NovaCopper’s Arctic deposit from Riley Ridge in June 2010. Arctic is a polymetallic deposit with copper, zinc, gold, and silver and is one of two Upper Kobuk Mineral Projects in the Ambler mining district. Arctic is on state-owned land.

Courtesy of NovaCopper, Inc

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Arctic cold creates a range of issues to be addressed in the development of a mine in the region.

In the case of a surface mine which drains water from a well, that water would freeze in the Arctic if operators did not insulate the pipes, Ganguli says. Ground water and surface water can be used in mineral processing, which is significantly colder in an Arctic environment.

“You can have the same geology and same processing technology as a mining operation outside the Arctic, but just because the water you’re bringing in is colder the chemistry will be slower in the processing plant,” Ganguli says. “It would be less vigorous, and therefore your recoveries would be lower.”

An Arctic challenge that affects deep open pit mines is air inversion. A layer of warmer air known as the inversion layer traps cooler air beneath it, trapping pollution along with it, Ganguli says. Valley inversion can increase from surrounding slopes like that of an open pit mine.

“In deep open pit mines inversion will cause air quality issues so much so that the mine will have to stop operating because it violates the health codes,” Ganguli says.

Although many of the currently proposed and potential Arctic mines typically have a high concentration of minerals to offset the costs of production, Ganguli says one future solution to transportation issues is the use of the Northwest Passage along Alaska’s western and northern coast.

The Northwest Passage is a sea route connecting the northern Atlantic and Pacific Oceans through the Arctic Ocean led along the coast of North America.

“A few mines have been talked about for development in the Arctic,” Ganguli says.

“Although if the Northwest Passage opens up with more and more ice free days available for shipping, it will open up deposits along the coast of Northwest Alaska. Many of these deposits will suddenly become economical.”

BHP Billiton, one of the world’s largest mining companies based in Australia, assessed the vast, high-quality coal deposits on lands owned by Arctic Slope Regional Corporation in Northwest Alaska about ten years ago, Ganguli says. The project went undeveloped because the deposits were located near the northwest coast along the Chukchi Sea more than 160 miles north of DeLong Mountain Terminal Port, which is connected to the Red Dog mine by a 52-mile gravel road.

“One reason they couldn’t make it work is because you would have to ship that large volume of coal to the Red Dog port—either by pipeline or another means—making it very unfeasible,” Ganguli says. “If they could ship it off from where they planned on mining, the whole area would open up for mining.” R

Alaska Business Monthly | April 2016 www.akbizmag.com

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special section

Mining

Courtesy of Usibelli Coal Mine, Inc.

University of Alaska Central Heat and Power Plant in Fairbanks, constructed in 1964, operates two stoker boilers and three steam turbines with 13 megawatts electricity capability and has a full-stream baghouse. The plant also provides space heat and air conditioning on campus.

Good News Abounds for Alaska’s Clean-Burning Coal Industry Aurora Energy LLC operates a coal fired power plant on the banks of the Chena River in downtown Fairbanks. The plant provides wholesale electricity to the local utility and provides district heat to approximately two hundred customers.

Courtesy of Usibelli Coal Mine, Inc.

Usibelli is well-positioned and dedicated

By Bill Brophy

U

sibelli Coal Mine (UCM) has provided affordable fuel to power plants in interior Alaska since 1943—more than seventy-three years and going strong!

The future of UCM looks bright, as major consumers of coal in Interior Alaska are making sizable investments in modernizing and expanding facilities that rely on coal to produce electric power and space heating.

Major Consumers of Coal

One major consumer of coal is the University of Alaska Fairbanks. The electrical, 114

Alaska Business Monthly | April 2016 www.akbizmag.com

Courtesy of Usibelli Coal Mine, Inc.

Named “Ace-in-the-Hole� by Healy school children, the dragline is the largest land mobile machine in Alaska.

heating, and air conditioning requirements of the UAF campus will continue to be met by coal for many decades in the future when the Central Heat and Power Plant upgrade is completed. The upgrade project includes a new, state-of-the-art boiler and a much larger turbine generator sized at 17 megawatts.

Another major consumer of coal is Eielson Air Force Base. The Eielson central heat and power plant has removed and replaced one boiler, is progressing on schedule with another boiler upgrade this winter, and programmed for a third boiler to be replaced in the near term.

Golden Valley Electric Association made tremendous progress last year to bring an additional 50 megawatts of coal-fired energy online in Healy. The plant, formerly known as the Healy Clean Coal Project, is now referred to as Healy Unit #2. When combined with Healy Unit #1 and Aurora Energy LLC in downtown Fairbanks, it will yield 100 megawatts of low-cost energy for Fairbanks-area consumers.

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Well-Positioned to Meet Needs

Usibelli Coal Mine is well-positioned to meet the fuel requirements for these customers and others. Two Bull Ridge Mine continues to be the primary mining area, but future demand for coal will also be met with a new mine seven miles to the northeast, the Jumbo Dome Mine. The coal seams at Jumbo Dome are approximately thirty to forty feet in thickness and extend for many miles. More than 700 million tons of surface mineable coal has been identified on current UCM leased property, which is enough coal to supply current demand for more than 350 years.

UCM coal has the lowest sulfur content of any coal mined in the United States and www.akbizmag.com

April 2016 | Alaska Business Monthly

115

Courtesy of Usibelli Coal Mine, Inc.

Dedicated to Employees

Usibelli’s electric-powered dragline “Ace-in-the-Hole” is at work where it can move 24,000 yards of dirt in a 24-hour period, leaving a strip of uncovered coal 145 feet or more wide. The size of the dragline comes into perspective when realizing the pickup truck in the foreground and the bulldozer in the background.

one of the lowest on the globe. This feature makes the coal very attractive for customers seeking to meet targets for lower emissions.

Anyone who has visited the mine will clearly walk away with a comfortable feeling that the Usibelli family is serious about protect-

ing the environment. UCM established an environmental stewardship program well before the government required mines to conduct reclamation and restoration procedures. The mine has a proven reputation for taking good care of the land, air, and water.

UCM leadership believes that the most important ingredient in its environment are the People. As of February 10, more than 115 UCM employees have achieved 575 continuous days without a single lost time injury. That includes the entire calendar year of 2015. This is a considerable accomplishment while operating and maintaining heavy equipment in tough and challenging conditions, including adverse weather.

Joe Usibelli Jr., President of UCM, is dedicated to taking care of company employees and their families, with a focus on good, stable wages and benefits, a safe work environment, proper training, and career progression. Joe believes supporting the community is part of taking care of the mine employees. He supports and advocates for a vibrant and healthy local school system, sports programs, artistic endeavors, community library, child care facilities, and recreational activities to mention a few.

Joe Usibelli, Chairman of the Board of Directors, once said: “Nepotism—it is a good thing if you keep it in the family.” Perhaps he said this with a humorous tone, but the reality is that 36 percent of the current workforce is second, third, or fourth generation employees. It is a testament to the highquality work environment at the mine that

FORT KNOX Responsible stewardship isn’t just a business practice – it’s our way of life.

It is an honor to be entrusted with protecting something precious. At Fort Knox, we have the privilege of safeguarding some of Alaska’s most valued resources – and that’s not referring to the gold we produce. The people we employ and the land we mine are highly valued both within our organization and within the community.

kinross.com 116

Fairbanks Gold Mining Inc. A Kinross company

Alaska Business Monthly | April 2016 www.akbizmag.com

Courtesy of Usibelli Coal Mine, Inc.

The Caterpillar 785 dump truck is capable of hauling 150 tons of cargo while the O & K RH170 track mounted excavator is capable of loading a truck in approximately four passes of 26 cubic yards each.

so many children of employees feel privileged to follow in their parents’ footsteps.

UCM employees look forward to coming to work each day, to be challenged with a tough job and make a positive contribution, providing a quality product, on budget and on schedule. They are proud to do that, day after day. Usibelli Coal Mine is a great place to live, work, and raise a family.

R Bill Brophy is Vice President, Customer Relations at Usibelli Coal Mine and is the Executive Director of The Usibelli Foundation.

Contact him at 907-452-0232 or bill@usibelli.com.

www.akbizmag.com

The Alaska Railroad delivers coal northbound to Interior Alaska coalfired power plants; approximately four trains per week, each train with approximately forty-five hopper cars.

Courtesy of Usibelli Coal Mine, Inc.

April 2016 | Alaska Business Monthly

117

ENGINEERING

Mobile LiDAR

Modern surveying tools can also design

A

By Julie Stricker

long-delayed road construction project in Fairbanks finally looked like it was getting back on track this past September for PDC Inc. Engineers. The $50 million project would widen a 2.1 mile section of University Avenue, adding a 19-foot median and other safety improvements. It’s one of Fairbanks’ busiest roads, with more than twenty-one thousand vehicles traveling along it daily and a high accident rate, says Matt Stone, a civil engineer with PDC. When engineers started looking at the data, however, they found some problems.

Courtesy of PDC Inc. Engineers

3D Scanning Offers Solutions PDC Inc. Engineers opted to use a truck-mounted lidar scanner to survey a road project in Fairbanks.

would probably have to be done at night.

There were a lot of issues.”

Instead, the company opted to use a truck-mounted lidar scanner.

“It’s pretty small but pretty expensive,” Stone says. “But using this machine, we were able to drive that road at traffic speed.

We had to drive it several times, but in the course of about two hours, we were able to collect the data we needed.”

Measuring Distance with Light

Lidar is a survey technique that uses light to measure distance. The term is a com-

adjoining areas, Bogren says.

For the University Avenue project, for instance, workers will need to relocate utilities extending from the public roadway to dozens of homes and businesses alongside.

“It allows you to collect data from private yards and businesses alongside the road,” he says. “It allows you to capture, for instance, the overhead phone lines that travel from the telephone pole to the house.”

“One benefit is that it also looks straight up, scanning in a 360 degree field,” Stone says. “It’s been really, really valuable on this project in that there’s an overhead transmis-

“A typical survey just wasn’t going to be feasible. There would be safety issues with the surveyors on the road. It would probably have to be done at night. There were a lot of issues.”

—Matt Stone Civil Engineer, PDC

“This project is many, many years old,” Stone says. “Some of the data was kind of patched together from many years of data collection. It all got kind of puzzle-pieced together. It was very outdated. There were a lot of features on the road that weren’t actually shown on our topographical map.”

A new survey was necessary, but time was of the essence. It was already late September and snow was forecast in the next few days.

A few years ago, this kind of project and deadline would have posed some pretty big obstacles for PDC Inc. Engineers, but technology offers a solution.

“A typical survey just wasn’t going to be feasible,” Stone says. “There would be safety issues with the surveyors on the road. It 118

bination of light and radar and is also an acronym for Light Detection and Ranging.

Although lidar has been around for years, only in the past four or five years has it become a standard for airborne, ground, and mobile mapping applications, says Dennis Bogren, vice president and principal surveyor for PDC Inc. “It’s a very unobstructive and safe way of collecting large amounts of data,” Bogren says.

Lidar sends out a swathe of laser signals that reflect off objects, similar to the way bats and dolphins use echolocation. The lasers measure every point in three dimensions, resulting in a cloud of data that can be used to create 3D model of a project and

sion line along University Avenue. The point cloud was able to create every single wire that was overhead.”

Having all of that information at hand means that if an engineer has to put a traffic signal six feet to the left of where it was originally planned, he can see if there’s an obstacle there without having to re-measure everything on site.

One of the downfalls of lidar is that the radar won’t reflect off water, Stone says. “So if it’s just rained and your surface is all wet, you get a hole in your data collection. It’s really interesting. In a couple of places you could see where someone had driven through a puddle.

You could see those tracks out on the road essentially as speckled holes in the surface.

Alaska Business Monthly | April 2016 www.akbizmag.com

3D Design

3D Design

Courtesy of PDC Inc. Engineers

“You have to plan the lidar,” he adds.

“You can have the [human] surveyor out in the rain or the snow, but the lidar has to be planned for dry conditions. It can be done at night. You don’t need light, but you need dry.”

Another restriction is the lidar doesn’t penetrate thick stands of brush or trees, Bogren notes.

The price tag can be pretty hefty. Bogren estimates the mobile lidar unit that was mounted on the truck cost about a million dollars. Terrestrial lidar units that are mounted on tripods and moved manually are much less expensive. Mapping a large swathe of land from a plane using lidar can also cost hundreds of thousands of dollars.

The advantage, besides speed, is it allows surveyors the ability to scan areas that would be dangerous to map in traditional ways, such as a bridge over railroad tracks, another project PDC Inc. accomplished with lidar.

A New Design Tool

It is also increasingly used as a design tool for engineers and architects, says Chris Burt, a civil engineer with Bell, formerly F. Robert Bell & Associates and CMH Consultants.

“The data is in such detail that you can easily fabricate complex objects,” says Burt, who has been using 3D scanning techniques since 2002. “Conventionally, it’s very difficult to measure how a pipe is bending, but with laser scanning, you’ve got the whole thing scanned. They can get really exact pieces. You’re getting so much detail on even really complex shapes that you can copycat shapes precisely.”

When Burt started working with laser scanning, most of the applications were in the oil and gas fields.

“In these facilities, they often need to replace or repair parts, but they can’t shut it down and let everything cool off,” he says.

“With a laser scanner, it lets you get all those measurements from a safe distance without shutting anything down. Then they go and design the part. Then you only have to shut down once to replace it.”

Other times, it’s not possible to safely access the area, whether it’s a super-hot piece of moving machinery or a fragile piece of architecture, he says.

A few years ago, “back when we still got snow in the winter,” he says, he was called to measure an old trestle at Hatcher Pass that was starting to collapse under the weight of heavy snow.

“They needed us to do a historical asbuilt survey,” Burt says. “They weren’t sure if it was going to last another winter. It was on the side of a hilltop and falling apart. We were able to go and scan from all around it from the surrounding hillsides. We made www.akbizmag.com

a list of materials for them and measured things, like what size the corner bracing was, without having to go and touch the trestle.”

The amount of data generated by the scans is staggering, Burt says. That’s one of the reasons it has taken years to be accepted for more mainstream uses, but today more software companies are making their programs more streamlined and intuitive.

Depending on the density of the scans, each one can create from 30 million to 150 million data points. But what used to require a supercomputer can now be done on a laptop.

“Each one of these points has a unique x, y, z point data, so it’s collecting data at a massive rate,” he says. Setting up common points to tie multiple scans together can create a 3D rendering of an object. Using a CAD program to create a model, a scan can be used to create almost a Google Streetview view of a project.

“It makes it a pretty powerful tool,” Burt says. “If you’re just turning around and looking at that 3D data, you can make a pretty powerful presentation tool, and it eliminates a lot of confusion for the design team. It’s got all the electrical and pipes and structural information together, and now they can all look at the same thing.”

R

Examples of 3D design using data collected by PDC Inc. Engineers using mobile lidar.

Julie Stricker is a journalist living near Fairbanks.

April 2016 | Alaska Business Monthly

119

OIL & GAS

Industry Players Weigh Cook Inlet Incentives

120

Alaska Business Monthly | April 2016 www.akbizmag.com

High pressure separator, heat treater, heat exchanger, and control building on site at the BlueCrest Energy facility near Anchor Point in February.

The equipment is to be used in the production of Cook Inlet Cosmopolitan Unit oil.

Courtesy of BlueCrest Energy

Facing uncertainty with costs, benefits, taxes, and credits

By Heather A. Resz

D

eveloping the Cosmopolitan oil and gas project in Cook Inlet is a big play for BlueCrest Energy, one of a group of smaller-sized independent producers and explorers lured north in recent years by the state’s Cook Inlet petroleum incentives.

www.akbizmag.com

April 2016 | Alaska Business Monthly

121

STATE OF ALASKA, DEPARTMENT OF NATURAL RESOURCES, DIVISION OF OIL AND GAS, AS OF SEPTEMBER 2015

COOK INLET UNITS AND FIELDS

Lewis River Unit

Otter Unit

Pretty Creek Gas Storage Lease Three Mile Creek Field

Stump Lake Unit

Ivan River Unit

Pretty Creek Unit

Ivan River Gas Storage Lease

Beluga River Unit

Lone Creek Unit

North Cook Inlet Unit

X Moquawkie Unit Nicolai Creek Unit

Granite Point Field

X X X X

X X West McArthur River Unit

X

X

North Trading Bay

X

North Middle Ground Shoal Field

Kitchen Lights Unit

Trading Bay Unit

X X

Birch Hill Unit

X

X X X

Swanson River Unit

X Tiger Eye Unit

X

West Foreland Field

X

Kustatan X Field

Middle Ground Shoal Field

X

South Middle Ground Shoal Unit

X Redoubt Unit

Swanson/Kenai Gas Storage 1 Lease

X

Swanson/Kenai Gas Storage 3 Lease

XX

Beaver Creek Unit

Wolf Lake Field

X X Kenai Loop Field

X

CINGSA Gas Storage Lease

Kenai Pool 6 Gas Storage Lease

X

X

West Fork Field

Sterling Unit

Cannery Loop Unit

X Kenai Unit

Kasilof Unit

X

X

Cook Inlet

Ninilchik Unit X

X

Non-Producing

Field

State Unit

Gas Storage Lease

Federal/State Unit

X

Pipeline

Federal Unit

X

Native Unit

Deep Creek Unit

Platforms and Pads Alaska Seaward Boundary

(Outer Continental Shelf Boundary)

State/Native Unit

Cosmopolitan Leases

X

X

X

Nikolaevsk Unit

$

North Fork Unit

This map was created, edited, and published by the State of Alaska, Department of Natural Resources, Division of Oil and Gas, and is for informational purposes only.

The information displayed is for graphic illustration only. The

official public recordremain for additional source documents the officialinformation. record. Consult the DNR Division of Oil and Gas Unit files, Lease files, and Land

Map Location

0

2.5

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Discrepancies boundary are comprising the AdministrationinSystem (LAS),alignments or other sources the official public record for additional information. result of merging multiple data sets from a number of different sources.

Discrepancies in boundary alignments are the result of merging multiple data sets from a number of different sources

MAP PUBLISHED MAY 2013 10 Map Published September 2015 Miles

This map contains data from various sources and DNR holds no responsibility to the accuracy of the data displayed on this map.

122

Alaska Business Monthly | April 2016 www.akbizmag.com

“What we really have a concern with is the timing of the changes. All of the plans and all of the spending obligations have already been entered into for this year.”

—Benjamin Johnson President and CEO, BlueCrest Energy

The privately-held Texas company—sole owner of one of the largest undeveloped fields in the Cook Inlet basin—will soon take delivery of a specially commissioned $44 million, three thousand horsepower drilling rig that will sit on the bluff and reach out three miles and down seven thousand feet to bring the oil to the surface, according to Benjamin Johnson, president and CEO, BlueCrest Energy. Oil production from an existing well will begin in April at the new $84 million, thirtyeight-acre site in Anchor Point, he says.

BlueCrest also has plans to use the new rig to drill two new oil wells in the last half of this year, Johnson says.

The Cosmopolitan project also includes a large natural gas deposit located in more shallow zones directly above the deeper oil.

A jack-up rig will be used to drill wells offshore to reach the gas, Johnson says. That gas would be produced into two offshore gas platforms and piped to the existing onshore Cosmopolitan facility for processing.

However, if passed as introduced by the governor, HB 247 (House Bill 247) would have significant financial impacts for the company’s plans this summer and for years into the future, Johnson says.

As written, HB 247 would terminate key tax credits—AS43.55.023(a) Production Tax Credits: Qualified CapEx Credits and AS43.55.022(I) Production Tax Credits: Well Lease Expenditure credit—in July.

“What we really have a concern with is the timing of the changes,” Johnson says. “All of the plans and all of the spending obligations have already been entered into for this year.

“That’s what we’ve based all of our funding on—the assumption that the laws would continue as is—at least for the rest of 2016 and into early 2017. We’ve already spent large amounts of our investments getting the oil facility ready to accept the oil from the new wells, and we have already committed to contracts for drilling the new wells that cannot even be started until the last half of 2016. If the tax credits expire in July, that would eliminate a large portion of the funding we had planned to use for drilling those new wells.” www.akbizmag.com

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April 2016 | Alaska Business Monthly

123

STATE OF ALASKA, DEPARTMENT OF NATURAL RESOURCES, DIVISION OF OIL AND GAS, AS OF NOVEMBER 2015

COOK INLET OIL AND GAS ACTIVITY 124

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Division of Oil and Gas Issued a call information Nancy Nafor ncnew y Lake L ake State Stfor atCook e Inlet Areawide and Alaska Peninsula Areawide oil and gas lease sale Recreation Area for Spring 2016. areas. Lease sale tentatively scheduled

Susitna V Expl License

Aurora Exploration LLC Permitting two gas exploration wells in Susitna Flats State Refuge in area previously known as the Hanna prospect. Plan to drill Theodore River #2 Fall 2015 and drill Chedatna Lakes #1 Winter 2016.

An email list is now available for leasing announcements, e e Sus S us for more information and to join the list visit http://list.state.ak.us/soalists/DOG.Leasing/jl.htm Knik K nik

Aurora Gas Planning to explore six other prospects in Cook Inlet with nine potential drilling locations and up to 11 potential exploration wells.

Susitna Flats State

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Purchased ~600 acres in Nikiski for LNG plant and marine terminal. Working on marine facility design and operations.

Continuing geotechnical assessments.

Design and testing of pipeline materials in progress.

Furie Operating Alaska Completed installation of monopod platform, onshore gas facilities and pipeline. Gas production anticipated January 2016 with initial production rate of 85 mcf/day. KLU #3 certfied as discovery well. Royalty reduced from 12.5% to 5% for first 10 years from discovery for three zones.

KITCHEN CHEN HEN LIGHTS LIGHT TS 5

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SAExploration Permitted lower and upper Cook Inlet 3-D marine seismic surveys; application for OCS waters approved by BOEM.

ConocoPhillips Alaska Inc. Marketing its producing assets in Cook Inlet including North Cook Inlet Unit and interest in Beluga River Unit. Also considering 2017 workover campaign.

Nicolai Creek

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AIDEA Completed purchase of Pentex Alaska Natural Gas Co. and now owns Fairbanks Natural Gas.

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Division of Oil and Gas Released year-end 2014 Cook Inlet gas reserves update, estimating 1,183 bcf proved and probable reserves remaining in existing producing oil and gas pools.

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Kasilof Tustumena Lake

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Ninilchik N

! FRANCES 1 ( BlueCrest Energy Formation of Cosmopolitan Unit partially approved. Includes leases overlying Hemlock S NE E8 DIONNE and Starichkof reservoirs. Constructing ! SUSAN ( PAXTON XTON 5 onshore facilities at Cosmopolitan Unit. Rig expected to arrive in November with first oil N Ninilchik inilc chik April 2016.

AIDEA Approved BlueCrest Energy Inc.’s loan for an onshore drilling rig for Cosmopolitan Unit.

la

Cook Inlet

Cook Inlet Energy Relinquished 14 leases in Cook Inlet.

Most leases were set to expire in 2023.

Hilcorp Planning to construct gravel pad and pipeline to support development at Ninilchik Unit.

Hilcorp Alaska LLC Permitting new drilling pad and gravel road to support two exploratory gas wells. Plan to construct pad late 2015 and drill first well Winter 2016.

Possibly drill 2nd well Spring 2015.

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North Fork

Alaska Seaward Boundary

Cook Inlet Energy Signed agreement with Enstar to continue supply of natural gas from North Fork field.

Hom H om Map Location

0

4.5

9 Miles

Homer Electric Association Signed natural gas sale and purchase agreement with Furie Operating Alaska starting April 2016.

The accuracy of this map is subject to pending decisions currently on appeal and other administrative actions.

Please visit http://dog.dnr.alaska.gov/GIS/ActivityMaps.htm to see our most current maps.

Alaska Business Monthly | April 2016 www.akbizmag.com

HB 247 was scheduled for hearings in the House Resources and Finance committees before heading to the Senate for consideration.

Johnson said 023(a) and 022(I) are the two main credits BlueCrest uses. BlueCrest has received about $24 million in tax credits to date and filed for an additional $33 million for investments made in 2015, he says.

“We have been hit pretty hard by the governor’s proposal.”

For now, BlueCrest’s plans to drill new offshore gas wells are on hold, pending the Legislature’s action, he says.

“We were ready to go this year, but then the tax credits changed,” Johnson says. “It works with the tax credits; it doesn’t work without the tax credits.”

There is only one offshore drilling rig in Cook Inlet right now BlueCrest can hire for that work this summer, he says. “If we can’t hire them this year, they can’t afford to keep the rig here.”

BlueCrest had planned to begin drilling for gas in 2016 and begin production in 2018, Johnson says. The company says it planned to invest more than $500 million on the project through 2019.

Tax Credit Talk Yields ‘Uncertainty’ The conversation around the state’s tax credit programs began in January 2015 after Leg-

www.akbizmag.com

islative Budget and Audit consultants Janak Mayer and Nikos Tsafos of energy data research firm enalytica suggested the state might not be getting its money’s worth from oil and gas incentives.

“Since the state does not levy a profitbased production tax in Cook Inlet, these [tax credits] essentially constitute a subsidy to Cook Inlet producers rather than an investment in future tax revenue [and production],” Mayer and Tsafos wrote in their analysis.

For the first time in 2015, the state spent more reimbursed—$101.4 million more— in tax credits than it collected in revenue through the oil and gas production tax, according to Department of Revenue data.

While the state struggles with a $3.8 billion budget deficit and the program’s annual credit obligations of up to $700 million, a thirty-seven-page report issued in December 2015 by the Oil and Gas Tax Credit Working Group urges caution when considering deep cuts to the program. Drastically cutting the tax credits to directly save money “could cause additional retraction of private investment in Alaska’s basins,” the report says.

Over the last eight years the state has paid out $7.4 billion in credits, Tax Division Director Ken Alper said at an October 2015 working group meeting. Cook Inlet compa-

nies received $1 billion of that—$900 million was refunded in cash and $100 million taken against tax liability, he said.

Some gas credits are set to expire or degrade in July, and, effective January 2022, Cook Inlet oil will be subject to the 35 percent tax rate established in Senate Bill 21.

“We’d like to see the tax credits continue through the end of this year and the beginning of next year,” he says. “It’s just not reasonable for the state to expect industry to make plans, sign contracts, and then have the laws changed after the work has already started.”

Cook Inlet incentives

Demand for natural gas in Southcentral Alaska for heat and electrical generation threatened to outpace Cook Inlet’s declining natural gas production in 2009, recalled MEA (Matanuska Electric Association) General Manager and CEO Tony Izzo. And Cook Inlet utilities were on the verge of importing natural gas in specially fitted tankers in 2010 when the Legislature approved the Cook Inlet Recovery Act, which included new incentives for the Cook Inlet oil and gas industry and language clearing the way for Alaska’s first natural gas commercial storage facility, he says.

“In 2009, I was lucky to get a gas contract for a percentage of what we might need,” Izzo says.

April 2016 | Alaska Business Monthly

125

Courtesy of BlueCrest Energy

BlueCrest Energy’s installed upper spreader bar assembly at the Anchor Point facility in February.

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Alaska Business Monthly | April 2016 www.akbizmag.com

“Let’s not create a circumstance where the investment goes away when we are so close to seeing those new reserves become commercially available.”

—Tony Izzo General Manager & CEO, MEA

Historic low natural gas production levels also ended operations for Cook Inlet’s two large industrial users, the Agrium fertilizer plant and the ConocoPhillips LNG (liquefied natural gas) export facility.

Since Cook Inlet fields began production in the 1950s, they have produced 8,308 billion cubic feet of gas and could produce another 1,183 billion cubic feet from remaining “proven and probable” reserves in legacy fields, according to September 2015 Alaska Division of Oil and Gas estimates.

A resource assessment report issued in 2011 by the US Geological Survey pegs the “technically recoverable” oil and gas remaining in Cook Inlet at 19 trillion cubic feet of undiscovered gas and 600 million barrels of undiscovered oil.

“They certainly feel like there is oil and gas to be discovered in the basin,” says Alaska Division of Oil and Gas Petroleum Geologist Paul L. Decker.

Since the incentives were implemented in 2010, seventy-five new oil and gas wells have been drilled, which has led to a corresponding increase in production, from nine thousand barrels per day in 2010 to more than sixteen thousand barrels per day in 2014, according to the Alaska Department of Revenue 2014 Revenue Source Book.

“The basin is in better shape overall than maybe we would have guessed seven or eight years ago,” Decker says.

For guys like Izzo, that should means it is easier to negotiate contracts than when the MEA inked a three-year deal with Cook Inlet newcomer Hilcorp Alaska in 2013 for its new Eklutna Generation Station.

However, due to uncertainty about the future of Cook Inlet oil and gas incentives, that’s not the case, Izzo says.

After months of negotiations, MEA and another utility were very close to signing a deal to negotiate a natural gas contract together when Governor Bill Walker announced he would delay payment of $200 million in scheduled reimbursements.

“The deal evaporated,” Izzo says.

While fuel supplies in Cook Inlet are strong now, after about 2022, uncertainty clouds the horizon, Izzo says.

“I would hate to see us unintentionally create a situation where we have five, maybe ten years, of supply available and then we are right back in the same boat as the preincentive era,” he says. “Let’s not create a circumstance where the investment goes away www.akbizmag.com

when we are so close to seeing those new reserves become commercially available.”

Incentives Entice New Players

Hilcorp Alaska is part of a corps of new businesses like BlueCrest, SAExploration, and Furie Operating Alaska LLC drawn to Cook Inlet by the incentive program.

Since joining Alaska’s oil and gas industry in 2011, the company has purchased Chevron/Union and Marathon’s assets, plus two offshore platforms, as well as a tank facility and offices in Nikiski on the Kenai Peninsula from ConocoPhillips Alaska.

Hilcorp performed eighty-eight well workovers and drilled twenty-two new

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April 2016 | Alaska Business Monthly

127

wells in 2014, according to an Alaska Oil and Gas Association fact sheet about Cook Inlet.

Its investments have yielded new production from legacy fields and netted the company contracts to supply gas to MEA, Chugach Electric Association, and ENSTAR. Whereas Hilcorp has invested in producing oil from existing fields through investments and new technology, Furie’s Kitchen Lights field is new gas in the line. Homer Electric Association’s agreement to purchase gas from Furie began April 1. Also of note is the price set for the gas: at $6.50 per thousand cubic feet (mcf), the price for the initial base load gas price is 12 percent cheaper than the $7.42 per mcf price in the

2012 Consent Decree agreed to by Hilcorp Alaska and the Department of Law. Izzo says one of Hilcorp’s core competencies is increasing production from mature fields. “They’ve really saved us at this point.”

To stabilize the Cook Inlet long-term, Izzo says the state needs a ten-year investment plan for the market that includes incentives and new markets for gas producers to sell that product.

“No one is going to come in and spend hundreds of millions of dollars to develop gas if they can’t sell it,” Izzo says.

Alaska LNG Project

With Southcentral utilities’ demand for natural gas averaging 65 billion cubic feet per year (BCF/yr) to 70 BCF/yr, the timely development of proved and probable reserves in Cook Inlet would be sufficient to meet that demand for seventeen to eighteen years, according to Decker, who is responsible for a September 2015 review of Cook Inlet Gas Reserves.

But with more natural gas available in Cook Inlet, there also is renewed interest in the resource from industrial users, Izzo says. Proposed projects include restarting the ConocoPhillips LNG export facility (up to 88 BCF/yr) and Agrium fertilizer plant (up to 55 BCF/yr), new exports to Japan

by Resources Energy, Inc. (49 BCF/yr), a gas pipeline from Cook Inlet to the Donlin Gold project near McGrath (13 BCF/yr), and delivering LNG by rail to the greater Fairbanks area (approximately 5 to 10 BCF/yr).

Adding in those new industrial users increases demand to around 285 BCF/year and would burn through Cook Inlet’s 1,183 BCF of proved and probable reserves in about four years.

While all of these proposed uses are unlikely to come online, ConocoPhillips has received approval from the US Department of Energy for a two-year license to start export of about 40 BCF of natural gas from its Kenai LNG export terminal in February.

The Alaska LNG Project also could deliver new natural gas to Cook Inlet, Decker says. The project was on a timeline to begin moving gas by 2025, he says. But low oil prices and the need for voters to consider the issue on the 2018 ballot have pushed plans back, Walker said in a February 17 press conference.

Decker says there is a lot of uncertainty surrounding when or if the project will deliver gas, and at what price. “It’s a balancing act.”

R Heather Resz lives in Wasilla. She’s told Alaska’s stories for nearly twenty years.

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Alaska Business Monthly | April 2016 www.akbizmag.com

OIL & GAS

Corporate Philanthropy in the Alaska Oil and Gas Industry Millions of dollars and thousands of hours donated

By Tom Anderson

I

f you have owned or managed a business, you’re likely aware of the pressure to increase income while making payroll and ensuring your bills are paid.

Alaska has a full spectrum of commerce and businesses that struggle with profit and loss flows every year. The oil and gas industry, while employing and profiting more than any other commerce sector in the state, faces the same challenge of fiscal responsibility and stewardship to shareholders, employees, and the communities in which its companies operate and profit.

Philanthropy and sharing the earnings with nonprofit organizations particularly in the healthcare, education, and emergency response worlds makes demonstrable difference. Charitable efforts now face an even greater struggle to secure funding from private sources considering the state’s fiscal deficit.

As capital budget, revenue sharing, and municipal assistance opportunities drain away, oil and gas industry members are stepping up and serving as a last bastion for financial support of critical nonprofit services and infrastructure.

Commitment to Community

Scott Odell grew up in Alaska. He worked his way up the corporate ladder with Halliburton, becoming the state’s district manager last year, overseeing oil fields services and product distribution.

In the business world, particularly the oil and gas industry, economics and science are the driving forces from which profits are seen www.akbizmag.com

or lost. This is to be expected. Fortunately, sometimes a business and its management take an extra step, above and beyond the call of corporate duty, to evaluate and redistribute profits back into the communities from which its employees, clients, and customers reside.

Odell and Halliburton follow this altruistic model to the benefit of Alaskans.

“When I was reassigned back to Alaska last year as District Manager for Halliburton, and I reviewed how extensive the company’s philanthropy extends statewide, it reinforced the importance of giving back to the community,” says Odell. “Our goal, at a charitable level, is to offer volunteer time and donations to the places where our employees live and raise their families.”

Halliburton has committed to and sponsored nearly $43,000 in community-based causes in 2015 and for 2016, in addition to donating employee time through volunteer efforts.

Odell says the company’s range of charitable commitments impacts everything from safety—through the American Red Cross Home Fire Preparedness Campaign and the purchase of smoke detectors for installation in Alaskan homes—to supporting public safety resources like the Anchorage Police Department Auxiliary Search Team, Crime Stoppers Tips Line phone system, and the Fraternal Order of Alaska State Troopers in its distribution of Safety Bear reflectors at regional detachments and in the Alaska Law Enforcement Museum.

Halliburton has made contributions to Bean’s Café and its Children’s Lunchbox nutrition program for those impoverished Alaskans in need of a warm meal. Odell adds that the company has an outstanding program called Giving Choices that allocates a percentage of matching funds for donations, made by individual employees, to their choice of charitable causes.

“Halliburton participates in many of the local industry sponsored events where funds are typically used for scholarships and advancing STEM programs to give Alaskan students the opportunity to advance in their future careers,” says Odell.

“Along with these opportunities to provide financial support, the local Halliburton employees stay busy with time and material commitments supporting the Food Bank, and most recently, setting up a campaign for an upcoming blood donation drive.

Whether lending a helping hand to Habitat for Humanity or donating items to ReStore, our employees stay engaged with the actions that make an impact on the lives of fellow Alaskans,” he says.

Support That’s Making an Impact on Lives The gamut of donations and charitable support by large oil companies creates more than just a ripple effect in the economy; it actually improves and saves lives.

Take for example ConocoPhillips. The company’s charitable culture has permeated communities throughout the state to the benefit of residents and visitors, with foundational level support and continuing contributions to keep programs afloat.

Natalie Lowman, the company’s Director of Communications for Alaska, notes its employees donate millions of dollars and thousands of hours annually in the state.

On June 4, 2015, ConocoPhillips Alaska announced its donation of $1 million to the Blood Bank of Alaska, totaling $2 million contributed for the nonprofits’ new facility construction. The company also supports numerous blood drives hosted at its corporate headquarters in Anchorage where employees have donated over 1,200 units of blood, helping as many as 3,500 Alaskan patients.

“Our employees are neighbors, teachers, and coaches, and they volunteer for organizations like the Downtown Soup Kitchen, Boy Scouts of America, and the Alaska Zoo,” Lowman adds. “In all, ConocoPhillips donated nearly $5 million to 320 nonprofit groups in 2015. Since 2000, we’ve donated about $125 million in support of social services, education, civic, arts, environmental, and health and safety initiatives statewide.”

In July of 2015 the company donated $500,000 to help complete the fourth floor of the UAF (University of Alaska Fairbanks) new engineering building, which will be home to the UAF Alaska Center for Energy and Power. The ConocoPhillips media release noted the financial support “brings the company’s total donations to UAF to more than $2.2 million,” with more than $35 million donated to the statewide University of Alaska system.

Big Bucks from Big Hearts

BP donates about $5 million annually, supporting approximately eight hundred nonprofit community groups across Alaska.

The company has a particular interest in supporting workforce development and education. For twenty-one years the celebrated “BP Teacher of Excellence” program has recognized more than 650 Alaska teachers. This honor has become a reputable, respected recognition for educators, with nominations coming from across the state. Colleagues, parents, students, and staff recommend their favorite educators. The winners receive stateApril 2016 | Alaska Business Monthly

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United Way and the Oil Industry Partnering for a better Anchorage

SOURCE: United Way of Anchorage

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ajor oil companies and oil industry support businesses have been partnering with United Way of Anchorage for decades, with BP Alaska and ConocoPhillips Alaska, Inc., or their corporate heritage companies, participating in United Way’s Workplace Campaign since 1966. These key partnerships, and donations from their employees, company matches, and corporate gifts, help to support community-wide efforts ensuring that kids are prepared for school and graduate, our residents have access to healthcare, and our families are housed and financially stable.

Contributions made to United Way are different from major endowments and building funds in that they support the collaborative efforts of United Way in bringing many organizations, government, and nonprofit agencies and community volunteers together to solve some of our city’s complex social issues.

In the past five years, employees and companies in this sector have contributed more than $12 million to United Way of An-

chorage (in addition to donations given to other United Way organizations in Alaska).

Because of their support and the work of community partnerships, United Way and 90% by 2020 are successfully working to raise the high school graduation rate. It has increased more than nine points since 2010 to a high of 80.2 percent today.

In 2015, of the top twelve contributors raising more than $100,000 (not counting Alaska Native Corporations with subsidiaries in the oil industry) five are from major oil industry companies:  Alyeska Pipeline Service Company  BP Alaska  Caelus Energy Alaska, Inc.  ConocoPhillips Alaska, Inc.  ExxonMobil Major oil companies and oil industry support businesses comprised 35 percent of the $5.8 million raised via Workplace Campaign this past fall. While this amount is

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down 12 percent from 2014 due to turnover and the economy, it is still a substantial and critical amount contributing to crucial efforts and needed supports being provided throughout Anchorage.

In addition to their generous contributions, individuals from these companies provide thousands of hours of volunteer support to many integral events, activities, and partnership efforts throughout the year. Thanks to volunteers, their time, commitment, and participation in Days of Action, Days of Caring, and the Day of Caring Food Drives, so many of our neighbors are being helped.

Dedicated volunteers and community partnerships are the reason the Emergency Cold Weather Shelter System has reported no children spending the night outside during our coldest months for the past three winters in a row and Anchorage residents in need are receiving much needed free tax prep support.

Engagement and support of the oil industry has been and continues to be essential to building a better Anchorage for everyone. R

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wide publicity, along with a $500 personal grant and $500 to their respective school.

Higher learning institutions are at the top of BP’s list for support and recognition, with the company having donated more than $30 million to the University of Alaska, Alaska Pacific University, and Iḷisaġvik College programs since 2001. These programs include the College of Engineering and Mines at UAF, the Alaska Native Science and Engineering program at the University of Alaska Anchorage (UAA), the BP Asset Integrity and Corrosion Lab at UAA, and the most recently the Alaska Center for Energy and Power at the University of Alaska Fairbanks (UAF). In addition to providing financial support, the company partners with UAF on research projects, provides mentors and internships for students, and employs graduates.

On February 15, UAF announced a $1 million gift from BP, which doubles the amount initially raised, to complete the fourth floor of the new Center for Energy and Power program to develop and test alternative energy systems throughout the state and provide rural communities access to efficient energy technologies and future development opportunities.

The Alaska Center for Energy and Power initiative will provide state-of-the-art space

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at UAF to allow researchers and students the ability to tackle complex energy challenges facing the state, the nation, and the world.

Another unique and convenient support element offered by BP to the community and nonprofits is the BP Energy Center that provides free meeting space to more than four hundred community and education groups annually. More than 155,000 visitors and meeting attendees have used the Center since it’s opening in 2002.

Every Bit Counts

Ultimately, a donation or contribution to any charity or person in need is positive for Alaskans. As is said with every nonprofit’s core goals, when it comes to giving, any amount helps.

Dowland-Bach, an oil field service design and manufacturing company, has been supporting Alaskans and their communities since 1975.

“Our company’s employees are local Alaskans living in either Anchorage or the Valley, so when I am asked about the company giving to the community, my first thought is ‘We are the community,’” says Reed Chistensen, Dowland-Bach president.

“Dowland-Bach considers itself very much a part of the local community. We live here, our kids go to school here, and we participate

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in the community in a variety of ways,” he adds. “Out of our twenty-nine employees, we have a youth soccer coach, a scout master, a hockey mentor, a VFW volunteer, an Army veteran, Navy veteran, and an adjunct professor at the University of Alaska Anchorage.”

Christensen says the company’s preference is actual hands-on involvement in the community in which its employees reside.

Most recent 2015 donations include $1,500 to the Blood Bank of Alaska, $2,500 to the American Cancer Society, and another $2,500 to the American Red Cross, among myriad other contributions of time, products, services, and direct financial aid to local nonprofits.

Economy and the fiscal climate also matter. For any oil and gas company in Alaska, overly burdensome taxes, fees, regulations, and delays in operations equate to a strained ability to support charities and communities through philanthropy.

“Looking at next year, we are being forced to scale back as we struggle through the current ‘low oil’ environment and will need to reduce the amount of cash donations by at least 50 percent or more,” notes Christensen.

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Legal Speak By Renea I. Saade

When the Music Stops—Will the Seat Still Be Empty?

The justices and decisions of the US Supreme Court

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ithout any doubt, the cases recently heard by the Supreme Court of the United States (SCOTUS) and scheduled to be heard this year are some of the most controversial and politically charged. SCOTUS has heard or has agreed to hear cases involving: the constitutionality of considering race in college admissions, the constitutionality of stateimposed restrictions on abortion, whether state employees who choose not to join a union can still be required to pay a share of union dues to cover contract negotiations and other benefits, whether the President of the United States can defer the deportation of unauthorized immigrants, and the conflict between claims of religious freedom and women’s access to contraception.

With the recent death of Justice Antonin Scalia, the status and outcome of these cases are unnervingly uncertain because Justice Scalia was commonly regarded as the “swing vote” that determined the outcome of cases divided between the “conservative” and “liberal” members of the Court.

Many legal commentators and scholars expect that if the remaining eight justices were to vote on many of the cases currently pending before the Court, it would result in a four-to-four tie. When there is a tie, the opinion of the lower court stands for the state or federal circuit that was affected and there is no change in law for that jurisdiction or the rest of the country. In other words, unless and until a new justice is appointed, the law on these controversial legal issues will likely not change and the Court’s time spent to date, and in the future, could very well be for naught.

History of Supreme Court

SCOTUS was established in 1789 pursuant to Article III of the US Constitution.

For a case to be heard before SCOTUS, one or more of the following conditions must be met: (1) diversity of citizenship among the parties to the case (parties are citizens 132

of different states or countries and the amount in controversy exceeds $75,000); (2) the case involves a question or issue of federal law (arises under the Constitution, laws, or treaties of the United States); and/ or (3) one of the parties is the US government (or agency, including the US Post Office). The Court is usually composed of a Chief Justice (currently John Roberts) and eight Associate Justices who were nominated by the President, vetted by the Senate Judiciary Committee, and confirmed by a vote of the entire Senate. Although there are multiple steps to the appointment process, since 1975 the process has only taken an average sixty-seven days.

The US Constitution does not specify any mandatory qualifications, but typically (at least in recent years) nominees have been well-regarded legal scholars and/or experienced jurists (individuals who have served as judges at federal or state courts). The appointment is for life unless the justice resigns, retires, takes senior status, or is impeached (which has never happened). The Chief Justice receives $223,500 a year, and Associate Justices receive $213,900 a year.

The retired justices’ pension is never less than their last salary rate. Therefore, not only is the position one of prestige, it also pays quite well.

of time for the appointment process, as well as sufficient time to substantially move forward on the cases pending before the Court. And, it is anyone’s guess whether the political affiliations of those involved in the appointment process will even change after the election. Yet, public and private debates will likely continue. It is hard not to wonder whether the seat will remain empty or if the Court will remain divested of any real power even after the music stops.

The composition of the current Court, and the corresponding nominating President, is John Roberts (G.W. Bush), Anthony Kennedy (R. Reagan), Clarence Thomas (G.H. Bush), Ruth Bader Ginsburg (affectionately known by her fans as “Notorious RBG”) (W. Clinton), Stephen Breyer (W. Clinton), Samuel Alito (G.W. Bush), Sonia Sotomayor (B. Obama), and Elena Kagan (B. Obama). More information on SCOTUS and the Senate Judiciary Committee can be found at: www.supremecourt.gov/ and www.judiciary.senate.gov/. Contact information for Alaska’s Senators is available at www.contactsenators.com/alaska/lisamurkowski (Senator Lisa Murkowski) and www.contactsenators.com/alaska/dan-sullivan (Senator Dan Sullivan).

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Replacing a Justice

Renea I. Saade is a partner with the Anchorage office of Stoel Rives LLP. Saade regularly assists companies with their commercial business and employment law needs. Contact her at renea.saade@stoel.com or 907-263-8412. This article is provided for educational purposes only. It is not a substitute for legal counsel.

Immediately upon Justice Scalia’s passing, legal scholars, commentators, journalists, and politicians alike shared their opinions on whether Justice Scalia should be replaced in the normal course or if the Senate Judiciary Committee and/or the full Senate should refuse to consider any nominees or stall the process (through filibustering or other efforts) until after a new President has taken office (which would be after the Presidential inauguration in January 2017).

At the time of Justice Scalia’s death, President Obama had more than 330 days left in office. Needless to say, there is still plenty

Alaska Business Monthly | April 2016 www.akbizmag.com

Inside

Alaska Business April 2016 HECLA MINING COMPANY ecla Mining Company reported the results from another successful year of exploration, achieving record silver reserves despite the use of significantly reduced metals prices for the calculation, and net of 2015 silver production. Greens Creek in Southeast Alaska had proven and reliable reserves of 88,733,000 ounces silver and 677,000 ounces gold. Drilling in the fourth quarter at Greens Creek continued to define new high-grade resources along recently identified and established mineralization trends.

Greens Creek milled 814,397 tons containing nearly 11 million ounces of silver and 90,398 ounces of gold. hecla-mining.com

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CONSTANTINE METAL RESOURCES LTD. onstantine Metal Resources Ltd. received the fourth $250,000 option payment from Dowa Metals & Mining Co., Ltd. totaling $1.25 million to date. Dowa completed year three of an option and JV agreement in which it can earn 49 percent in Constantine’s Palmer Project by making aggregate expenditures of $22 million. The Palmer Project is a resource expansion stage, high-grade volcanogenic massive sulphide (copper, zinc, gold, silver) project located in Southeast Alaska, with road ac-

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Compiled by ABM Staff cess to the edge of the property and within thirty-seven miles of the year-round deep sea port of Haines. constantinemetals.com NOVAGOLD RESOURCES INC. ovagold Resources, Inc. released its year-end financial results and project update for its flagship 50 percent-owned Donlin Gold project in Western Alaska. In 2016, NovaGold expects to spend about $9 million to fund its share of expenditures at the Donlin Gold project and $1 million for its share of joint Donlin Gold studies with Barrick. Novagold will continue to advance the Donlin Gold project toward a construction/production decision. novagold.com

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WASH MULTIFAMILY LAUNDRY SYSTEMS ASH Multifamily Laundry Systems, North America’s leading laundry facilities management service company, has partnered with Harold’s Commercial Laundry, a distributor of commercial and coinoperated laundry appliances and services in Anchorage. The newly formed partnership will enhance the breadth of services available to both companies’ customers throughout Alaska. As WASH continues to grow nationally so will WASH’s market presence in Alaska. washlaundry.com

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RESOURCE DATA, INC. esource Data, Inc., a custom software development, GIS, and IT consulting firm, has acquired Finsight LLC, a company that specializes in developing IT solutions for the fisheries industry. The acquisition brought new talent to Resource Data, Inc. and positioned the company to expand its fisheries work in Alaska and the Pacific Northwest with added staff in Juneau and Portland. Resource Data, Inc. and Finsight have partnered on projects in recent years, including developing a comprehensive website for commercial fishermen along the West Coast to report their catches. resdat.com

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AHTNA, INCORPORATED htna, Incorporated recently acquired AAA Valley Gravel LLC, a sand and gravel mining, trucking, and asphalt operation, strategically located to support transportation projects in the Matanuska-Susitna Valley. AAA Valley Gravel LLC is headed

by David O’Donnell, who is also president of Ahtna Construction and Primary Products, Inc. and is headquartered in Palmer. ahtna-inc.com

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ALASKA COMMUNICATIONS yrusOne, a global data center provider, and Alaska Communications, a broad-

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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.

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INSIDE ALASKA BUSINESS band and IT solutions provider, signed an agreement to benefit customers of both companies. Alaska Communications will now provide enterprise businesses and government agencies secure and reliable connectivity with offsite data storage at CyrusOne’s advanced, highly secure Houston data center campus. CyrusOne, which operates thirtyone carrier-neutral facilities across the United States, Europe, and Asia, can now serve customers with secure, reliable connectivity to Alaska on Alaska Communications’ network. alaskacommunications.com COOK INLET REGION, INC. laskaNativeHire.com, developed and launched by CIRI, was designed to increase hiring of the state’s entire Alaska Native population. AlaskaNativeHire.com offers job seekers the opportunity to create an online employment profile which generates a virtual resume highlighting their skills, talents, and experience. In addition, job seekers will be notified of open positions for which they are qualified. Profiles on AlaskaNativeHire.com are free for job seekers. During the three-month introductory phase of the website, employers can use the service for their recruiting needs at no cost. alaskanativehire.com

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BLOOD BANK OF ALASKA lood Bank of Alaska opened its new headquarters at 1215 Airport Heights in Anchorage. The Blood Bank collects blood to service over twenty-one hospitals across the state including Alaska Native hospitals and military facilities. The new building project began in 2008 when the current laboratory facility was found to be insufficient for the future needs of patients in Alaska.

One in three Alaskans will need blood in their lifetime, and there is no substitute for

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blood, it is a vital part of the health system and irreplaceable in many surgeries and treatments plans. bloodbankofalaska.org ALASKA VISITOR STATISTICS he Alaska Visitor Statistics Program VI Interim Visitor Volume Report (Summer 2015), prepared for the state by McDowell Group, found Alaska received 1.78 million out-of-state visitors between May and September 2015. This visitor volume is the highest on record since tracking began in 1985. Details of the 7 percent increase over 2014 attribute it to transportation market increases: air (13%), cruise ship (3%), and highway/ferry (14%). Other findings are exit mode statistics: air (49%), cruise (46%), highway (4%), and ferry (<1%); and total transportation market statistics: cruise (56%), air (39%), and highway/ferry (4%). commerce.alaska.gov/web/DED

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RASMUSON FOUNDATION laska Philanthropy Advisors is a new service that will provide assistance to Alaskans seeking to use their wealth to make positive change. It will fill the need for individuals, companies, or families in helping to define and articulate philanthropy goals, identifying partners or grantees, and investing in programs that achieve the donor’s desired impact. Rasmuson Foundation is underwriting the start-up costs of Alaska Philanthropy Advisors for the first year to allow interested donors to interview the service. In the future, the service will be supported by user fees. rasmuson.org

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VOICE OF THE ARCTIC IÑUPIAT new nonprofit corporation has taken shape on the North Slope, bringing together the leadership of some twenty organizations from the region with the goal of

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providing a unified front on topics ranging from engagement and advocacy to legislative outreach. Voice of the Arctic Iñupiat held its first annual meeting to launch the corporation and set its long-term agenda.

Goals include addressing and participating in legislation, increasing communication and information-sharing among all Iñupiat organizations of the North Slope, promoting Iñupiat stewardship of the region, and to provide local advocacy and engagement for the Iñupiat to local, state, federal, and international forums. asrc.com MOUNTAIN VIEW JOB CENTER he Alaska Department of Labor and Workforce Development and the Municipality of Anchorage partnered to expand Job Center services in Mountain View, with the goal of reducing unemployment and supporting continued neighborhood revitalization. State Job Center staff will offer regular courses on job training at the Mountain View Library, including courses on preparing résumés, practicing for interviews, and computer and financial literacy. labor.alaska.gov

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CALIBER WEALTH DEVELOPMENT aliber The Wealth Development Company closed on Salmon Falls Resort and Edgewater Inn Restaurant & Marina in Ketchikan for a combined price of $11 million.

They are the company’s first acquisitions in Alaska and will undergo new marketing and operations efforts including a new online reservation system. Salmon Falls Resort will be upgrade with a remodel to guest rooms, restaurant, bar, office, registration, exterior, common areas, and the addition of a small day spa. Properties were acquired with partners Leslie Hospitality Consulting and Heav-

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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.

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Compiled by ABM Staff lin Management Company, which will manage day-to-day operations. caliberco.com ANCHORAGE PUBLIC LIBRARY nchorage Public Library is committed to strengthening early literacy by encouraging parents and caregivers to read 1,000 books to their pre-K children before kindergarten. The Loussac Library hosted the “1,000 Books before Kindergarten” program launch. Parents can sign up for the 1,000 book challenge. Children will receive logs to track how many books they read. At 1,000 books, they receive an Alaska-themed picture book. Sharing books before school begins is an excellent way to ensure children are successful in reading and schoolwork. Alaska Northwest Books and the Friends of the Library are sponsors.

AnchorageLibrary.org

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U-HAUL AND SMART GROCERY mart Grocery & Dollar Store has signed on as a neighborhood U-Haul dealer at 6311 Debarr Road, Suite M, in Anchorage.

Trucks, trailers, towing equipment, and support rental items are available from 8 a.m. to 10 p.m. every day and can be reserved by calling 907-332-0230. Every U-Haul truck placed in a community helps keep nineteen personally owned largecapacity vehicles, pickups, SUVs, and vans off the road. Become U-Haul famous by taking a selfie in front of a U-Haul product, send it in, and you could be on the side of a U-Haul truck. uhaulfamous.com

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RESOURCE DATA, INC. esource Data, Inc., a custom software development, GIS, and IT consulting firm, acquired Finsight LLC, a company that specializes in developing IT solutions for the fisheries industry. The acquisition brought

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new talent to Resource Data, Inc. and positioned the company to expand its fisheries work in Alaska and the Pacific Northwest with added staff in Juneau and Portland.

Resource Data, Inc. and Finsight have partnered on projects in recent years, including developing a comprehensive website for commercial fishermen along the West Coast to report their catches. resdat.com RAVEN’S ROOST COHOUSING onstruction is underway on the innovative Raven’s Roost Cohousing project located on over six acres off Abbott Road in Anchorage. The planned thirty-five home housing development is 5-star plus energy rated. It is being built in phases by The Petersen Group.

A construction loan was secured last August from First National Bank Alaska. Although all one and four bedroom homes are reserved in Phase 1 there are still two and three bedroom homes available for investment. Anticipated move-in is this summer or fall. The cohousing project conceptualized for Anchorage in September 2011. abbottcoho.org

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ALASKA INTRASTATE GAS COMPANY laska Intrastate Gas Company and AECOM entered into an agreement to provide engineering and associated services that will provide an opportunity to bring piped propane gas mixed with air to seventeen Alaska communities. AECOM was picked to spearhead the project that will include building and operating gas supply infrastructure as a public utility in communities that use diesel fuel for heating, industrial process, and power generation needs.

Alaska Intrastate holds certificates of Public Convenience and Necessity to provide gas to Juneau, Ketchikan, Sitka, Cordova, Kodiak, Valdez, Angoon, Craig, Haines, Kake,

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Klawock, Klukwan, Metlakatla, Petersburg, Skagway, Wrangell, and Yakutat. aecom.com AHFC laska Housing Finance Corporation closed the waitlist to new participants in the Home Energy Rebate program. To date, 40,010 families received an initial rating measuring the performance of their home.

Of those, 24,560 families completed improvements and received rebates averaging $6,463. An additional 3,248 families built new construction and received rebates up to $10,000 for building to the highest efficiency level recognized—currently, six stars.

The Home Energy Rebate and New Home Rebate programs are entirely funded by the state through the capital budget. In total, it has contributed $252.5 million. ahfc.us

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ASTAC rctic Slope Telephone Cooperative Association teamed with AT&T and North Slope Telecom, Inc. to provide ice road crews and other workers superior connectivity in one of the most remote areas of the state. Ice road construction to a development project in the Greater Mooses Tooth Unit of the National Petroleum ReserveAlaska began in January. ASTAC and the team erected a temporary eighty-foot tower midway along the road to which ASTAC attached its cell site. The result—4G cell service for the more than 150 camp workers who otherwise would only have been R using hand held radios. astac.net

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RIGHT MOVES NANA Management Services

NANA Management Services hires new managers to its operations.

Myron Fanning joins NMS Security as Security Manager. He retired from the Anchorage Police Department as deputy chief of Police after twenty-three years. Fanning Fanning earned a BS in Criminal Justice from University of North Alabama and has served almost ten years in the US Army.

Laura Rogers joins NMS Staffing as Direct Hire Manager. She has recruited talent in engineering, science, construction, project Rogers management, IT, and technical field support for employee placement businesses and corporate sourcing entities.

Dan Javes was named Director of Operations for NMS Food & Facilities Management. Javes was director of operations for Javes Gate Gourmet at San Francisco International Airport. He also has fifteen years of experience with Sodexo/Marriott.

Anchorage Chamber of Commerce

Lisa Noland joins the Anchorage Chamber of Commerce as the Director of Marketing and Business Development. She was the chief marketing officer at the Arc of Noland Anchorage. Noland also worked with Community Connections, Inc. in Ketchikan and has owned and managed two successful small businesses. She earned a bachelor’s in Social Work from Pacific Union College and an MPA from Walden University.

Calista Corporation

Alice Crow and Cody Troseth join Calista to lead the new shareholder enrollment effort.

Crow joins as the Shareholder Enrollment Director. She has worked with small, rural, and urban Alaska businesses and multinational companies, as well as with regional and statewide Tribal-focused entities. Crow earned an MBA

Compiled by Russ Slaten from the University of Alaska Fairbanks and an MFA from the Institute of American Indian Arts in Santa Fe, New Mexico.

Troseth joins as the ANCSA Stock Enrollment Project Manager. He has experience in project management and worked on the Shell Alaska Exploration project in the Chukchi Sea. Troseth earned a BS in mathematics and an MS in project management from the University of Alaska Anchorage.

Alaska Support Industry Alliance

Hans Rodvik joins the Alaska Support Industry Alliance as External Affairs Coordinator. He was a legislative intern for Alaska Senate Majority Leader Senator Rodvik John Coghill. Rodvik has worked with Americans for Prosperity Alaska as field director. He earned a BA in Political Science from the University of Alaska Anchorage.

Alaska Gasline Development Corporation

Dave Cruz was elected Chairman of the Board for the Alaska Gasline Development Corporation. Cruz was serving dual roles as acting board chair and president since Cruz November.

Leslie “Fritz” Krusen was appointed Interim President of the corporation. He joined as vice president of Alaska LNG. Krusen has a thirty-six-year career in the oil and gas industry where he Krusen held a variety of engineering, technical, and project management positions both domestically and internationally.

First National Bank Alaska

Tom Tougas joins the First National Bank Alaska Board of Directors. He started in Alaska with the tourism industry as a tour bus driver in the Tougas 1970s. Today Tougas owns Seward-

Fowlis

Estrada

Sikorski

based businesses Major Marine Tours and the ninetyroom Harbor 360 Hotel and has helped manage numerous companies throughout the years.

Syl Fowlis was promoted to Branch Manager of First National Bank Alaska’s Eastchester Branch.

Fowlis has worked in banking for more than a decade with roles as a teller, personal banker, business development officer, and branch manager.

Krissi Estrada was appointed as Branch Manager at the Federal Branch in downtown Anchorage.

Estrada is a fifteen-year banking veteran.

Adam Sikorski joins as a new officer in First National’s Trust Department with twelve years of investing experience.

Goldbelt Incorporated

Elliot “Chuck” Wimberly was appointed as the Interim President and CEO of Goldbelt Incorporated.

Wimberly was a senior vice president at Goldbelt since 2010, and was the interim president and CEO in 2011. Wimberly has ten years of Wimberly experience as a senior executive with Alaska Native Corporations. Additionally, Wimberly has more than twenty years of experience in government service.

Rasmuson Foundation

Jason Metrokin was elected to the Rasmuson Foundation Board of Directors. He is president and CEO of Bristol Bay Native Corporation and chairs the ANCSA Regional Association. Metrokin has served on a number of corporate and Metrokin nonprofit boards of directors including BBNC subsidiary companies, United Way of Anchorage, the Alaska Community Foundation, Alaska Regional Hospital, Alaska Pacific University, and the Alaska Native Professional Association.

Deborah Bitney joins Rasmuson Foundation

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RIGHT MOVES

Compiled by Russ Slaten

as Vice President and Chief Administrative Officer. She has thirty years of experience as an administrator in a wide range of sectors. Bitney was administrative services director for the Alaska Gasline Development Corporation Bitney and was director of the Alaska Permanent Fund Dividend Division.

Stoel Rives LLP

James E. Torgerson was appointed firm-wide Managing Partner of US business law firm Stoel Rives LLP. Torgerson joined the firm as a founder and managing partner of the Anchorage office in 2008. Torgerson He also has served on the firm’s executive committee since 2012. Torgerson has helped to grow the Anchorage office to fifteen attorneys representing many Alaska Native corporations.

Parker, Smith & Feek

Colleen Savoie, Principal and Employee Benefits Executive at Parker, Smith & Feek, was elected to the firm’s Board of Directors.

Todd Wheeler, an Account Executive and Vice President of Savoie Parker, Smith & Feek, was recently elected as a shareholder. He is recognized as a skilled negotiator and innovative advisor.

Matt Thon has been hired as an Account Executive in Parker, Smith & Feek’s Commercial Insurance Wheeler Department.

R&M Consultants, Inc.

Information Modeling implementation. Shackleford earned a Bachelor of Architecture from Virginia Tech.

played an important role in implementing the firm’s operational structure since 2002.

Bret Coburn was named Chief Financial Officer of R&M and Vice President of the Board of Directors. He served as R&M’s CEO Coburn with responsibility for oversight of the firm’s administrative and financial functions from 2002 to 2014. Coburn will continue to be responsible for financial matters at the firm and providing oversight of the firm’s accounting and administrative staff.

Northrim Bank

Veronica Pillans was promoted to AVP Loan Officer—Small Business Center at Northrim Bank. Pillans has more than ten years of banking and lending experience. She began her banking career at First National Bank Pillans Alaska in 2005 and joined Northrim in 2012. Pillans earned a Small Business Degree from UAA and completed the Banking and Finance program through American Bankers Association.

Bruce Tretzen joins Northrim Bank as VP Relationship Manager— Northrim Funding Services. Tretzen has seventeen years of commercial lending experience, nine of which in the asset based lending industry.

He is a former business owner who Tretzen studied accounting and business at Edmonds College and the University of Washington.

Alaska Chamber of Commerce

Crystal Norman joins the Alaska Chamber of Commerce as Executive Administrative Assistant.

She worked in ConocoPhillips Alaska’s Philanthropy and Community Services for the past four years. Norman’s background Norman includes finance and administration in both philanthropy and nonprofit organizations.

She earned a BFA from Abilene Christian University.

Anchorage Downtown Partnership, Ltd.

Waste Management, Inc.

Jamie Boring joins Anchorage Downtown Partnership, Ltd. as the new Executive Director.

Boring has been a business owner in the Anchorage Downtown Improvement District and board member of Anchorage Downtown Boring Partnership. Boring has a strong background in construction, development, and finance and has served in the US Marine Corps.

Keith Gehring joins Waste Management Sustainability Services as Business Development Manager for the Pacific Northwest/ Alaska. Gehring has more than twenty-five years of experience in the environmental services Gehring industry in the Pacific Northwest and will help bring Waste Management’s broad array of environmental services to Alaska.

Len Story, PLS, was named the new CEO of R&M Consultants, Inc. and President of the Board of Directors.

Story joined R&M in 1979 as a survey technician. Over the past thirty-seven years, he has worked Story as party chief, senior land surveyor, surveying and mapping department manager, vice president, and chief operating officer. Story offers leadership and operational knowledge and has

Thompson & Co. Public Relations

McCool Carlson Green

Liz Baker was promoted to Vice President at Anchoragebased Thompson & Co. Public Relations and leads the new Gulf Coast office in Houston, Texas. Baker joined the agency as a senior account manager in Baker 2012 after moving to Anchorage with agency experience from her home state of South Carolina. She brings expertise in account planning and business development.

R

Mollie Shackleford was appointed Architectural Business Information Modeling Specialist at McCool Carlson Green. For the past five years Shackleford has focused in construction technology, having worked for two large general Shackleford contractors, including DPR Construction. She has taught Revit with an Autodesk reseller and consulting with architects in Business

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April 2016 | Alaska Business Monthly

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Accolades

Compiled by Tasha Anderson The Association of Fundraising Professionals Alaska Chapter is proud to announce the 2015 Outstanding Professional in Philanthropy, Beth Johnson, CFRE, and the 2015 Outstanding Philanthropist Diane Moxness. afpalaska.afpnet.org

Photo courtesy of Foss Maritime

The Alaska Marine Conservation Council was one of six winners overall and one of two winners in the growth-stage category for their Alaska Community Seafood Hub concept at a global seafood innovation competition, Fish 2.0, winning a $5,000 cash prize. akmarine.org

Foss recognized at Chamber of Shipping of America (left to right) Bruce Fernie, CSA Chair; Susan Hayman, Foss; Rear Admiral Paul Thomas; Kathy Metcalf, CSA President and CEO.

Spawn Ideas has been named #4 on Outside magazine’s Best Places to Work 2015. Each year, Outside recognizes the top 100 companies in the United States that help their employees strike the ideal balance between work and play. These companies encourage employees to lead an active lifestyle, are eco-conscious, and prioritize giving back to the community. spawnak.com

F

Coastal Villages Region Fund issues $500,000 in matching funds to help residents purchase critical village equipment during PFD Season, completing the fourth round of the People Propel program, which has made it possible for hundreds of residents in western Alaska to purchase new outboard motors, boats, snow machines, all-terrain vehicles, fishing nets, and commercial fishing permits since its launch in 2013. coastalvillages.org The following Alaska realtors were awarded the Graduate, Realtor Institute designation by the Alaska Association of Realtors, having completed more than sixty-seven hours of classroom instructions and examinations covering subjects such as contract law, professional standards, sales and marketing, finance, and risk reduction: Christina Ashton, Amy Bacon, Becki Baird, Kelci Boe, Kelsey Brewer, Patty Gapinski, Carmi Gubser, Benjamin Heaverley, Zinna Heavener, Lane Rau, Douglas Rudd, Steve Sharp, and Lindsay Sizemore. alaskarealtors.com

NEW!

Photo courtesy of Alaska USA Foundation

oss Maritime With a combined 858 years without an incident, seventy-eight Foss Maritime and subsidiary companies’ tugs and tank barges have been recognized by the Chamber of Shipping of America for Foss Maritime’s environmental safety records. Foss and its sister companies have thirty-eight vessels with ten or more years without an environmental incident, with twelve of those vessels achieving twenty-plus years of environmental excellence. foss.com

Alaska USA Fairbanks employees present a check to Ann (far right) a representative from the Fairbanks Community Food Bank, one of seventeen community food banks benefiting from the Alaska USA Cash for Cans food drive.

Alaska USA Federal Credit Union members contributed $76,300 to support their community food banks during the annual Cash for Cans food drive. Alaska branches collected $53,500, which will benefit Food Bank of Alaska in Anchorage, Fairbanks Food Bank, Palmer Food Bank, Kenai Peninsula Food Bank, Kodiak Island Food Bank, Mat-Su Food Bank, Homer Food Pantry, Southeast Alaska Food Bank in Juneau, and the Salvation Army in Bethel and Ketchikan. alaskausafoundation.org

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The National Center for American Indian Enterprise Development hass announced its 2015 class of “Native American 40 Under 40” award recipients. Matt Carle, who is Haida and an Anchorage resident, is among the 40 under 40 award winners that were honored during the 40th Annual Indian Progress in Business Awards Gala. res.ncaied.org

this year for this esteemed honor and received a $5,000 prize at an award ceremony and reception held in New York City, hosted by Carnegie Corporation of New York. ilovelibraries.org/lovemylibrarian

Four projects of twenty-nine proposals have been chosen to receive grants from the ConocoPhillips Arctic Science and Engineering Fund, for a total of $280,000 for fiscal year 2016: Accelerated Corrosion Under Insulation Test Apparatus, Matt Cullin; The Impacts of Plastic on Western Aleutian Islands Seabirds: Detection of Phthalates in Muscle and Embryonic Tissues, Doug Causey and Aaron Dotson; Snow Cover in AK: Comprehensive Review, Gennady Gienko, Scott Hamel, and Rob Lang; Petroleum Geology at UAA: Geophysics Faculty and ConocoPhillips Subsurface Laboratory Support, Jens Munk, Jennifer Aschoff, Matt Reeves, and Erin Shea. conocophillips.com Doyon, Limited has donated $250,000 to the Troth Yeddha’ Legacy project at the University of Alaska Fairbanks. The twophase Troth Yeddha’ Legacy initiative will develop a park and build an indigenous studies center on the Fairbanks campus. doyon.com Smart Growth America—a national nonprofit that advocates for better cities, towns, and neighborhoods—announced that the Municipality of Anchorage is among seven winning communities that will receive a free technical assistance workshop in 2016.

Through the program, Anchorage will receive hands-on assistance from national experts to plan for the economic and fiscal health of our community. muni.org Alaska Communications was recently recognized for having the highest level of customer satisfaction and most advanced unified communications solutions when it earned Midmarket Unified Communications - Silver Level Partner status from Avaya, a worldwide leader in premise-based telephony and unified communications. Alaska Communications’ upgraded status with Avaya reflects ongoing investments in its network, training and customer service. alaskacommunications.com Dona J. Helmer, librarian at the College Gate Elementary School library in Anchorage, received the I Love My Librarian Award for her outstanding public service to the community and ongoing commitment to transforming lives through education and lifelong learning. Helmer was one of only ten librarians within the United States recognized

Photo courtesy of Sitka Local Foods Network

Chad Hufford, a PlanMember advisor with Veritas Wealth Management in Anchorage, has been nominated as a semifinalist for the third Elite Advisor Award, an annual recognition of excellence in the 403(b) and 457(b) retirement industry. veritasalaska.com

A few Sitka Local Foods Network board members and supporters at St. Peter’s Fellowship Farm communal garden, which supplies most of the local produce sold at the Sitka Farmers Markets during the summer. (Front row from left) Michelle Putz, Muriel Sadleir-Hart, Lisa Sadleir-Hart, and Kathy Jones; (back row from left) Matthew Jackson, Jonathan Adler, Peter Gorman, Jud Kirkness, Brandie Cheatham, Mary Therese Thomson, and Laura Schmidt.

Tom’s of Maine announced that the Sitka Local Foods Network has been selected as one of fifty-two winners from across the country in its seventh annual “50 States for Good” communitygiving program. The Sitka Local Foods Network will receive $20,000 to fund important community projects and services in its mission to increase the amount of locally produced and harvested food in the diets of Southeast Alaskans. sitkalocalfoodsnetwork.org Chugach Electric Association, Matanuska Electric Association, Municipal Light & Power, and Renewable Energy Alaska Project held the 2015 Power Pledge Challenge for middle school students in the Anchorage School District and the Matanuska-Susitna Borough School District. The winning classes were Anchorage School District: Hanshew Middle School – Lauren O’Connor (teacher), 4th period science class; Matanuska-Susitna Borough School District and Eagle River Winner: Palmer Jr. Middle School – Robin Mullican (teacher), 4th period science class; and the Grand Prize Winner: Romig Middle School – Ben Walker (teacher), 3rd period science class. The grand prize-winning class was presented with an ice cream party with Alaska First Lady Donna Walker.

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April 2016 | Alaska Business Monthly

139

BIRDING

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SHOP

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STAY

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he willow ptarmigan was named Alaska’s state bird in 1955, but Alaska has a fantastic variety of birds, many of which reside in Alaska year-round. Throughout Alaska, communities have festivals to celebrate birds as they gather or return for the summer, including the Bald Eagle Festival in Haines, the Hummingbird Festival in Sitka, the Stikine River Birding Festival in Wrangell, a Spring Migration celebration in Fairbanks, the Kenai Birding Festival, and the Yakutat Tern Festival.

In addition, there is a growing flock of birding tour operators appealing to birders the world over to quietly adventure into the most remote and far-flung locations to catch a glimpse of some of the nearly five hundred species of birds found in Alaska.

Common murres nesting on a cliff at St. Paul, Pribilof Islands. © NOAA Photo Library by Allen Shimada NOAA/NMFS/OST/AMD

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Top three businesses in each category will be revealed in the July issue, featuring the Best of Alaska Business.

SOUTHCENTRAL

EAT

SHOP

PLAY

STAY By Tasha AndersonBy Tasha Anderson

S

outhcentral Alaska includes the Anchorage Bowl, Cook Inlet, the Kenai Peninsula, Prince William Sound, the Matanuska-Susitna Valley, and the Copper River Valley and is home to more than half of Alaska’s population. The region features the mountains, rivers, forests, and coastline of the rural portions of Alaska, but with the convenience of wellmaintained roads, trails, and the Alaska Railroad.

Between adventures on the road, in the air, or by sea, guests have numerous options to catch some rest, ranging from campgrounds to locally owned bed and breakfasts to nationally recognized luxury hotels.

© Michael Jones / AlaskaStock.com

AvisAlaska.com

Rent. Lease. Buy. STATEWIDE LOCATIONS

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Anchorage Sitka

Fairbanks Juneau

Kenai Skagway

Kodiak Haines

Petersburg Whittier

Alaska Business Monthly | April 2016 www.akbizmag.com

By Tasha Anderson

SHOP

PLAY

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ome may envision brunch as a group of friends gathered on a casual Sunday; but brunch can also be an opportunity during the week for meetings, events, and conferences. Bakeries, bistros, and cafes across the state can provide brunch staples, as well as Alaska’s many event venues, including cultural centers and hotels.

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April 2016 | Alaska Business Monthly

143

BRUNCH

EAT 

BOATS

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By Tasha Anderson

PLAY

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laska has more than twelve thousand rivers; more than 3 million lakes; and 6,640 miles of general coastline; all in all, it’s pretty handy to have a boat in the Last Frontier. Many parts of Alaska are still only accessible by boat or by plane. Whether by raft, canoe, kayak, or a motorized river- or oceanworthy vessel, any boat is an opportunity to fish, hunt, or view Alaska in a new light.

Commercial fishing boats moored in the harbor at King Cove on the Alaska Peninsula. © Scott Dickerson/AlaskaStock.com

Modern Boutique.

CLASSIC CHARM.

Exquisitely restored in the heart of downtown, the Historic Anchorage Hotel offers superior service and luxury accommodations in a boutique setting – at a price you can afford.

Its remodeled banquet spaces can accommodate 150.

330 E Street, Anchorage, Alaska 99501 | 907-272-4553 • 800-544-0988

www.HistoricAnchorageHotel.com 144

Alaska Business Monthly | April 2016 www.akbizmag.com

HIS012 ABM Print Ad_V7.indd 1

8/30/12 1:38 PM

PLAY 

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Anchorage

7

APR

The increasingly tense relationship between law enforcement and the public is seen through the eyes of someone who’s been on both sides: a former sheriff who established Utah’s first SWAT team, only to see the same unit kill his son-in-law in a controversial standoff thirty years later. Now a private investigator, Dub seeks the truth in this case and other officer-involved shootings. Rasmuson Hall, 7 p.m. to 9 p.m. alaskapublic.org/ indie-lens

8-10

The pre-concert lecture begins an hour before the show. Davis Concert Hall, Friday 8 p.m. and Sunday 4 p.m. fairbankssymphony.org

Fairbanks APR

Fairbanks Outdoor Show

22-24 More from 140 vendors

7

Annual Symphony of Wines

This is a fundraising event to benefit the Anchorage Symphony Orchestra and includes a silent auction, wine tasting, music, and appetizers.

Hotel Captain Cook, 7 p.m. to 9:30 p.m. anchoragesymphony.org

APR

from Alaska and the Lower 48 gather to present fishing charters, hunting expeditions, boats, ATVs, trailers, rafting, kayaking, outdoor dear, fishing and hunting supplies, camping supplies, taxidermy services, and more.

Carlson Center: Friday 2 p.m. to 8 p.m.; Saturday 10 a.m. to 6 p.m.; Sunday 11 a.m. to 5 p.m. carlson-center.com APR-MAY

Turnadot

Eduard Zilberkant conducts the Fairbanks Symphony Orchestra the Fairbanks Symphony Chorus, and the Northland Youth Choir with Teresa Eickel, Michael Morrow, Jaunelle Celaire, Kenneth Kellogg, and others to be announced.

29-1

Juneau APR

Alaska Folk Festival

Juneau emerges from winter with the state’s largest annual gathering of musicians from Alaska and beyond for a week of musical performances, workshops, dances and just plain jamming. The best part: it’s free and open to the public. Centennial Hall. akfolkfest.org

4-10

APR

Blessing of the Fleet

APR

The annual blessing of Petersburg’s fishing fleet, visit with and hear tales of the various boats and old time fishermen and women.

Coffee and pastries served after, sponsored by the Sons of Norway Lodge. Open to the community and broadcast on radio.

Fisherman Memorial Park. petersburg.org

24

Valdez Dala

APR

Juno nominees and winners of the 2010 Canadian Folk Music Award for Vocal Group of the Year, Amanda Walther and Sheila Carabine of Dala write and sing in harmony. Valdez Civic Center, 8 p.m. valdezalaska.org

20

Wasilla APR

15-23

On Golden Pond

APR

Clink!

a glass in cheers and 5 Raise clink to the success of arts in Juneau. There’s a panoply of wines from around the world. Juneau Arts & Culture Center, 5 p.m. facebook.com/ events/490469197799063

Juneau

Alaska Heart Run

All money raised at the Heart Run benefits the American Heart Association and will fund research and community programs that help to right cardiovascular diseases and stroke. Alaska Airlines Center: timed run 9:30 a.m.; untimed run 10 a.m. heartrun.kintera.org

23

www.akbizmag.com

Robert Louis Stevenson’s Treasure Island

Treasure Island brings to life this boy’s thrilling adventure—as reflected upon by his adult self—in search of buried treasure on a distant and mysterious island. This classic coming of age story is complete with stolen map, pirates, swashbuckling battles, betrayal and the infamous Long John Silver, who just may be the “devil himself.” Glenn Massay Theater, evening and matinee shows. glennmassaytheater.com This is the love story of Ethel and Norman Thayer, who return to their summer home on Golden Pond for the forty-eighth year. This is a wonderful story of hope, enduring love, and what it means to be family with enough laughter to warm the heart even more. Valley Performing Arts, Fridays and Saturdays 7 p.m.; Sundays 2 p.m. valleyperformingarts.org

1-17

Wrangell

NYO Games Alaska

than five hundred 21-23 More athletes from across Alaska will compete in the 46th Annual NYO Games Alaska at the Alaska Airlines Center on the UAA campus.

NYO Games celebrates Alaska’s rich diversity and is open to students of all backgrounds. Athletic events include the kneel jump, wrist carry, stick pull, toe kick, one-hand reach, two-foot high kick, one-foot high kick, Alaska high kick, and seal hop. Additional activities include musical and dance performances, the Pilot Bread recipe contest, and the Opportunities Expo. citci.org/event-programs/nyo-games APR

Alyeska Spring Carnival and Slush Cup

Spring Carnival takes advantage of the long days with extended hours of lift operations, great spring-skiing conditions, and Alyeska’s largest and most popular winter event, Slush Cup, where competitors dressed in zany costumes attempt to skim across a ninety-foot long pool of freezing water. Other activities include the KWHL costume party, Idiot Swim, Dummy Downhill, XTRATUF Pull tug-of-war, live music, and more. alyeskaresort.com

Anchorage

APR

Petersburg

Girdwood

‘Peace Officer’ Screening

APR

STAY

Compiled by Tasha Anderson

APR-MAY

APR

23

Alaska Robotics Mini-Con

This event is for the community to meet artists, get sketches, and have books signed. Juneau Arts & Culture Center. minicon.alaskarobotics.com

Stikine River Birding Festival

28-1 This festival is a week-long celebration of spring in Wrangell and annual spring Eagle migration and shorebird migration on the Stikine River.

Activities include a golf tournament, fish fry, art workshops, and speakers. stikinebirding.org R Ketchikan APR

Hummingbird Festival

Through the month of April, this festival celebrates the return of migratory birds back to Alaska.

The most notable bird at this festival is the Rufous hummingbird, who begins arriving in Ketchikan in mid-March.

The festival includes guided hikes, art shows, activities for children, and many other birding events. alaskacenters.gov/ketchikan.cfm

1-30

April 2016 | Alaska Business Monthly

145

EVENTS CALENDAR APRIL 2016

EAT

Business Events APRIL

APR

Alaska Young Professionals Summit

Dena’ina Center, Anchorage: The Young Professionals Group is hosting the first annual statewide summit for young professionals in Alaska. The theme is “Innovative Leadership” and the summit offers two full days of extensive networking opportunities and fast paced, intensive training to prepare and motivate young professionals to be better, more productive leaders and employees.

1-2

APR

4-9

AMA 25th Biennial Mining Conference

Carlson Conference Center, Fairbanks: The Alaska Miners Association spring convention will highlight innovation and research surrounding Arctic environments with technical sessions and practical courses for mining professionals. There will also be a Trade Show and field trips to local mines and projects.

APR

6-7

Governor’s Safety and Health Conference

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

APR

8-9

ASRT Annual Meeting and Educational Conference

Westmark Fairbanks Hotel: This annual event offers a single location for companies as well as Imaging Specialists from all modalities to network with the largest captive audience in Alaska. aksrt.com

APR

AKHIMA Annual Meeting

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

13-15

APR

AKMGMA Annual Conference

This is the 30th anniversary of the Medical Group Management Association Alaska conference, and the theme for 2016 is “Rock Stars of Practice Management.” akmgma.org

14-16 APR

Alaska Native Studies Conference

University of Alaska Anchorage: This year’s theme is “Wellness & Healing: Indigenous Innovations & Alaska Native Research.” alaskanativestudies.org

15-16 APR

18-21

AWWMA Annual Statewide Conference

Anchorage: This is a venue to bring information, technology, expertise, curiosity, hunger, and thirst (for refreshment and knowledge) to the Water and Wastewater Industry Professionals in Alaska. awwma.org 146

Compiled by Tasha Anderson APR

NEA Alaska Spring Conference

NEA Alaska, an affiliate of the National Education Association, is an organization with over twelve thousand members who work in Alaska’s public schools. neaalaska.org

22-24 APR

25-27

AWRA Spring Specialty Conference: Water-Energy-Environment

Sheraton Anchorage: Topics include energy-oil and gas, energy-coal, energyhydropower, water supply and energy management, environment, and communications. awra.org/meetings/Anchorage2016

APR

Alaska Rural Energy Conference

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

26-28 APR

26-28

Alaska Annual Behavioral Health Conference

BP Energy Center, Anchorage: Topics for this year’s conference include care and coordination of discharge planning, State of Alaska behavioral health initiatives update, and unique and diverse Alaska cultural considerations. qualishealth.org

MAY

MAY

8-11

Alaska Bar Convention

Dena’ina Center, Anchorage: This conference provides opportunities to complete CLE requirements as well as an opening reception, several luncheons, and an awards reception and Dinner for 25, 50, and 60 year recognition. alaskabar.org

11-13 MAY

ACUL Annual Meeting

Westmark Fairbanks Hotel: The Alaska Credit Union League’s annual meeting is an opportunity to gather, network, and learn. alaskacreditunions.org/events.html

19-21

JUNE

JUN

2-5

12-16

Alaska Optometric Association Summer CE Conference

Land’s End Resort, Homer: AKOA’s mission is to influence the future of eye care by ensuring the welfare of Alaskans and promoting continued development of the profession of optometry. akoa.org

International Conference on Bear Research & Management

Dena’ina Center, Anchorage: An opportunity for bear professionals to present current research and management and conservation efforts. The theme is “Learning from our past to inform our future.” bearbiology.com

JUN

CSTE Annual Conference

Anchorage: The conference connects more than 1,400 public health epidemiologists from across the country and will include workshops, plenary sessions with leaders in the field of public health, oral breakout sessions, roundtable discussions, and poster presentations. csteconference.org/2016

19-23

JUN

20-24

Southcentral Foundation Alaska Conference

Anchorage: Southcentral Foundation’s mission is to work with the Native Community to achieve wellness through health and related services. southcentralfoundation.com

JULY

JUL

Alaska Business Week

Alaska Pacific University, Anchorage: Alaska Business Week is a one-week summer program teaching the basic principles of private sector business to Alaskan high school students. alaskachamber.com

16-23

International Green Energy Conference

Hilton Anchorage: The International Association for Green Energy is holding its 11th annual conference with sessions planned for all relevant green energy disciplinary areas from new concept, theory, modeling and simulation to experimental. The conference is being held in cooperation with the University of Alaska Anchorage, the Canadian Society for Mechanical Engineering, and the Alaska Geotourism Collaboration.

MAY

JUN

AUGUST

AUG

ICETECH 16

AUG

Aleutian Life Forum

AUG

AML Annual Summer Conference

Hotel Captain Cook, Anchorage: The Arctic Section of the Society of Naval Architects and Marine Engineers together with Alaska’s Institute of the North is now well on the way to staging the premier international conference on ships and structures in ice. icetech16.org

15-18

Unalaska: Aleutian Life Forum is a conference gathering of national, state, and regional scientists; industry stakeholders; community leaders; and local knowledge to promote resilient coastal communities. aleutianlifeforum.com

16-20

Anchorage: The AML Board of Directors, Alaska Conference of Mayors, Alaska Municipal Management Association, and Legislative Committee meet to work on AML policies and platform and to conduct business for each group. akml.org

17-19 AUG

21-23

NTCA Northwest Regional Conference

Hilton Anchorage: NTCA–The Rural Broadband Association is the premier association representing nearly nine hundred independent, community-based telecommunications companies that are leading innovation in rural and R small-town America. ntca.org

Alaska Business Monthly | April 2016 www.akbizmag.com

ALASKA TRENDS

By Khristian Viray

National Defense to the Rescue?

Alaska economy benefits from military spending

S

ince World War II, the military’s economic impact on Alaska has risen and fallen, but one thing is certain: it has remained one of the state’s economic backbones, particularly in construction.

The construction of the Alaska Highway, along with many other roads, airfields, and military bases, was conducted by the military—directly impacting Alaska’s transportation infrastructure and economy. In 2016, national defense construction spending in Alaska is projected by ISER to increase 27 percent over last year, bringing about $552 million into the state. The increase is a break in the downward trend of defense construction spending and of public construction spending as a whole.

The sliding value of construction spending is attributed to the rapid decrease of oil prices and the resulting cuts to state government.

Eielson AFB in Spotlight

The effects of the swift drop in the price of oil over the last eighteen months have been felt throughout Alaska industries. Specifically, the construction industry spending

in 2016 will be 18 percent lower than 2015 spending, according ISER. As in the past, defense spending has increased thanks in part to Alaska’s strategic geographical location. Eielson Air Force Base is the prime choice for the new F-35 squadrons; a decision will be made later this year. The F-35 is a fifth generation fighter and is the most technologically advanced multi-role fighter in the world. Eielson is the gateway to the world’s largest joint air, land, sea, subsea, space, and electromagnetic training assets—Joint Pacific Alaska Range Complex (JPARC), which has about 65,000 miles of available airspace; 2,490 square miles of land space with 1.5 million acres of maneuver land; and 42,000 square nautical miles of sea and airspace.

Increased Spending

In addition to the F-35 projects, the initial phase for the $1 billion expansion project for missile defense in Fort Greely and Clear Air Force Base will be in progress this year.

Also, other Corps of Engineers MILCON project spending is included in the $552 million defense forecast for 2016.

Benefits to State Economy

The increase in defense spending will benefit the state economy and the Corporate 100 in the near future, partially offsetting the weakness in other sectors. Opportunities will be expected for employment, contractors, service sector jobs, and others due to the projects, and Alaska Native Corporations especially will benefit from this activity because of their subcontractor subsidiaries. Currently, Eielson employs one civilian for every four service members. According to alaskaf35s.com, an estimated 1,959 military personnel and their dependents will be added to the Alaska population if two squadrons of F-35s are based in Eielson. Two squadrons will bring in approximately $1.3 billion annual revenue to the Interior, helping add a measure of stability in the region as oil prices remain low.

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

SOURCES: 2016 Alaska-Construction Spending Forecast for the Associated General Contractors of Alaska and the Construction Industry Progress Fund

by Scott Goldsmith and Pamela Cravez, Institute of Social and Economic Research, University of Alaska Anchorage alaskaf35s.com | jber.af.mil/shared/media/document/AFD-120214-039.pdf

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147

ALASKA TRENDS

Indicator

By Khristian Viray

Units

GENERAL Per Capita Personal Income—Alaska US $ Per Capita Personal Income—United States US $ Consumer Prices—Anchorage 1982-1984 = 100 Consumer Prices—United States 1982-1984 = 100 Bankruptcies Alaska Total Number Filed Anchorage Total Number Filed Fairbanks Total Number Filed Labor Force in Alaska Thousands Unemployment Rate Alaska Percent United States Percent Employment Alaska Thousands Anchorage/Mat-Su Region Thousands Anchorage, Municipality Thousands Interior Region Thousands Fairbanks North Star Borough Thousands Southeast Thousands Juneau, City and Borough Thousands Northern Region Thousands Gulf Coast Thousands Southwest Region Thousands Sectorial Distribution—Alaska Total Nonfarm Thousands Goods-Producing Thousands Mining and Logging Thousands Mining Thousands Oil & Gas Thousands Construction Thousands Manufacturing Thousands Seafood Processing Thousands Service-Providing Thousands Trade, Transportation, Utilities Thousands Wholesale Trade Thousands Retail Trade Thousands Food & Beverage Stores Thousands General Merchandise Stores Thousands Trans/Warehouse/Utilities Thousands Air Transportation Thousands Information Thousands Telecommunications Thousands Financial Activities Thousands Professional & Business Svcs Thousands Educational & Health Services Thousands Health Care Thousands Leisure & Hospitality Thousands Accommodation Thousands Food Svcs & Drinking Places Thousands Other Services Thousands Government Thousands Federal Government Thousands State Government Thousands State Education Thousands Local Government Thousands Local Education Thousands Tribal Government Thousands PETROLEUM/MINING Crude Oil Production—Alaska 148

Millions of Barrels

Period

Latest Report Period

Previous Report Period (revised)

Year Ago Period

Year Over Year Change

3rdQ15 3rdQ15 2ndH15 2ndH15

56,768.0 48,051.0 216.7 237.7

56,422.0 47,537.0 217.1 236.2

54,169.0 46,255.0 216.8 237.0

4.8% 3.9% -0.0% 0.3%

February February February January

31.0 25.0 2.0 357.0

17.0 13.0 1.0 360.0

28.0 17.0 8.0 360.1

10.7% 47.1% -75.0% -0.9%

January January

7.3 4.9

6.7 5.0

7.2 5.7

1.4% -14.0%

January January January January January January January January January January

330.8 190.2 149.1 42.3 42.3 32.1 16.0 10.1 33.5 17.7

335.9 195.7 153.5 48.8 43.8 32.8 16.0 10.4 33.6 14.5

334.1 191.4 150.0 47.9 42.9 32.6 16.2 10.4 34.1 17.7

-1.0% -0.6% -0.6% -11.8% -1.4% -1.6% -1.4% -3.1% -1.6% 0.1%

January January January January January January January January January January January January January January January January January January January January January January January January January January January January January January January January January

322.1 41.2 15.8 15.7 12.9 14.0 11.4 8.0 280.9 63.7 6.3 37.6 6.1 10.8 19.8 5.4 6.2 4.2 12.1 27.8 47.9 35.1 30.1 6.1 20.1 11.7 81.4 14.5 24.9 7.7 42.0 23.7 3.7

325.0 40.2 16.6 16.5 13.5 16.7 6.9 3.1 284.8 66.9 6.4 38.9 6.4 10.5 21.6 5.7 6.2 4.4 11.9 26.9 48.6 34.5 30.3 7.1 19.0 12.3 81.7 14.4 25.1 8.1 42.2 23.8 3.7

323.0 43.6 17.2 17.1 14.7 15.1 11.3 7.4 279.4 62.6 6.1 36.1 6.0 9.8 20.4 5.6 6.2 4.2 11.9 28.1 47.2 34.1 29.9 7.8 18.3 11.6 81.9 14.2 26.3 8.2 41.4 23.5 3.4

-0.3% -5.5% -8.1% -8.2% -12.2% -7.3% 0.9% 8.1% 0.5% 1.8% 3.3% 4.2% 1.7% 10.2% -2.9% -3.6% 0.0% 0.0% 1.7% -1.1% 1.5% 2.9% 0.7% -21.8% 9.8% 0.9% -0.6% 2.1% -5.3% -6.1% 1.4% 0.9% 8.8%

January

15.9

16.1

15.5

2.6%

Alaska Business Monthly | April 2016 www.akbizmag.com

ALASKA TRENDS

Indicator

By Khristian Viray

Units

Natural Gas Field Production—Alaska Billions of Cubic Ft. ANS West Coast Average Spot Price $ per Barrel Hughes Rig Count Alaska Active Rigs United States Active Rigs Gold Prices $ Per Troy Oz. Silver Prices $ Per Troy Oz. Zinc Prices $ Per tonn

Period

Latest Report Period

Previous Report Period (revised)

Year Ago Period

Year Over Year Change

January 7.9 8.5 8.9 January 30.2 37.1 48.8 January January 13.0 11.0 10.0 January 619.0 698.0 1,543.0 February 1,234.5 1,112.4 1,229.2 February 15.3 14.9 17.7 February 1,709.9 1,527.8 2,097.8

-11.2% -38.1%

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

January January January January

15.1 3.1 6.2 5.6

50.1 14.5 32.3 3.1

34.2 7.7 14.7 11.6

-56.0% -59.7% -57.8%

Dollars Dollars Dollars

3rdQ15 3rdQ15 3rdQ15

287,606.0 190,451.0 458,177.0

287,989.0 184,829.0 481,798.0

275,533.0 181,196.0 416,167.0

4.4% 5.1% 10.1%

Dollars Dollars

3rdQ15 3rdQ15

229,493.0 149,952.0

233,422.0 163,474.0

225,858.0 168,485.0

1.6% -11.0%

Units Units Units

3rdQ15 3rdQ15 3rdQ15

186.0 19.0 97.0

228.0 67.0 120.0

220.0 37.0 237.0

-15.5% -48.6% -59.1%

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

Thousands Thousands

December December

197.6 42.6

365.4 76.3

389.14 76.53

-49.2% -44.3%

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

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

January January January January January January January

50,087.4 51,199.4 53.8 -1,724.7 45.2 -19.6 -1,301.3

51,793.0 52,295.0 595.3 -850.2 -82.7 -6.9 -491.5

52,358.4 53,396.3 161.1 -32.8 196.1 142.8 -244.6

-4.3% -4.1% -66.6% 5158.2% -77.0% -113.7% -432.0%

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

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

3rdQ15 3rdQ15 3rdQ15 3rdQ15 3rdQ15 3rdQ15 3rdQ15 3rdQ15 3rdQ15

6,340.2 378.4 148.2 2,970.6 20.4 5,515.1 4,717.2 2,097.1 2,620.1

6,340.2 378.4 148.2 2,970.6 20.4 5,515.1 4,717.2 2,097.1 2,620.1

5,781.7 299.4 146.7 2,742.9 18.0 5,002.3 4,346.6 1,830.3 2,516.3

9.7% 26.4% 1.0% 8.3% 13.5% 10.3% 8.5% 14.6% 4.1%

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

February February February February February

113.4 1.4 0.7 0.9 6.5

120.3 1.4 0.7 0.9 6.6

118.65 1.25 0.65 0.88 6.15

-4.4% 8.0% 2.5% 4.4% 6.3%

REAL ESTATE Anchorage Building Permit Valuations Total Residential Commercial Government Average Loan in Housing Market Statewide Single-Family Condominium Multi-Family Refinance Average Loan Statewide Single-Family Condominium New Housing Built Statewide Single-Family Mobile Home Multi-Family

30.0% -59.9% 0.4% -13.2% -18.5%

NOTES: 1. Banking data has been updated to include Alaska State Banks and Alaska’s sole federally chartered, Alaska-based bank, First National Bank Alaska.

2. Information oh housing is retrieved from AHFC website. 3. Silver Prices via Bloomberg

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April 2016 | Alaska Business Monthly

149

FINANCIAL SERVICES

Courtesy of Wells Fargo

Courtesy of Wells Fargo

An early twentieth century gathering of men at the Bank of Alaska in Anchorage.

Bank of Alaska opened for business on March 20, 1916, in Skagway at a temporary location.

150

Courtesy of Wells Fargo

Courtesy of Wells Fargo

The permanent Bank of Alaska office in Skagway opened on March 20, 1917, exactly one year after the bank first debuted.

Wells Fargo has maintained its Skagway office in its original state, including historic Gold Rush-era relics.

First Anchorage office, 4th Avenue, circa 1915.

Alaska Business Monthly | April 2016 www.akbizmag.com

Wells Fargo Celebrating 100 years of banking in Alaska

Courtesy of Wells Fargo

I

Celebrating 100 years of banking in Alaska

Original invitation to the grand opening of Bank of Alaska’s first office in Skagway.

Courtesy of Wells Fargo

n Alaska’s mining camps, local traders and merchants often served as bankers by buying gold dust, offering credit and loans, and creating local currency. These merchant banks and unregulated private financial institutions opened and closed with alarming regularity.

Wells Fargo & Company helped solve the problem by providing financial services such as money orders and reliable transportation of mail, gold, fish, furs, fruit and other valuables via boat, rail, stagecoach, and even dogsleds.

From 1911 to 1918, Wells Fargo operated 40 express delivery and banking offices across the state. With the onset of World War I, the U.S. government took over the nation’s express companies, ending Wells Fargo’s service in Alaska for more than eight decades.

After Alaska gained territorial status in 1912, its new legislature passed a banking act to regulate the industry and allow branch banking, paving the way for the Bank of Alaska to open offices in Skagway, Wrangell, and Anchorage in 1916. The bank struggled during the turbulent years of World War I, then Swedish immigrant, minister, and attorney E.A. Rasmuson took the helm in 1919 and helped right the ship. Over the next 80 years, the Rasmuson family guided the bank through statehood, the Good Friday Earthquake, dozens of bank mergers and acquisitions, oil boom, bust, and economic recovery.

In 2000, the famous Concord stagecoach rode into Alaska once again as National Bank of Alaska merged with Wells Fargo. R

Courtesy of Wells Fargo

National Bank of Alaska, Northern Lights Boulevard office in Anchorage, circa 1979.

An urban moose rests in the snow at Wells Fargo’s Alaska headquarters building at 301 West Northern Lights Boulevard in Anchorage. www.akbizmag.com

SOURCE: Wells Fargo Bank

April 2016 | Alaska Business Monthly

151

ADVERTISERS INDEX Ahtna Inc..........................................................15 Alaska Forum.................................................59 Alaska Logistics...........................................126 Alaska Mergers & Acquisitions LLC..........71 Alaska Miners Association........................115 Alaska Railroad Real Estate Division........51 Alaska USA Federal Credit Union...........153 Alaska USA Insurance Brokers..................95 American Marine / Penco........................147 American Track Truck Inc........................108 Anchorage Messenger Service................ 70 Arctic Office Products................................62 ASRC Energy..................................................29 Avis Rent-A-Car...........................................142 BDO..................................................................26 Best Western Kodiak Inn & Convention Center.............................79 C & R Pipe and Steel Inc.............................69 Calista Corp....................................................39 Carlile Transportation Systems..................13 Catalyst Marine Engineering.....................63 Chugach Alaska Corp..................................32 CIRI Alaska Tourism.................................... 84 Colonial Life - Whitfield Benefit Solutions..40 Colville Inc.....................................................40 Construction Machinery Industrial...........2

Cornerstone Advisors.................................. 21 Craig Taylor Equipment...............................99 Crowley Alaska Inc....................................... 61 Cruz Companies Alaska Aggregate Products................117 Diamond Airport Parking............................71 Diamond Gold Corp....................................111 Donlin Gold...................................................115 Doyon Limited................................................. 3 ESS Support Services Worldwide Impressions Catering.............................89 Explore Fairbanks.........................................81 Fairbanks Memorial Hospital....................28 Fairweather LLC.......................................... 112 First National Bank Alaska........................... 5 Foss Maritime................................................ 41 Fountainhead Hotels...................................79 GCI.........................................................123, 154 Global Services Inc......................................131 Great Originals Inc......................................... 9 Greater Sitka Chamber of Commerce.... 84 Hecla Greens Creek Mining Co................27 Historic Anchorage Hotel........................ 144 Hotel Captain Cook...................................... 35 JP Construction/ Alaska Concrete Polishing................. 101

Judy Patrick Photography.........................151 Juneau Convention & Visitors Bureau....87 Junior Achievement of Alaska.................. 30 Katmai Onocology Group.......................... 41 Kinross Fort Knox....................................... 116 Land’s End Resort.........................................83 Lynden Inc...................................................... 10 Matanuska-Susitna Convention & Visitors Bureau............91 Matson Inc......................................................25 Medical Park Family Care Inc....................94 MFCP Motion & Flow Control Products Inc.......................... 105 Microcom....................................................100 N C Machinery............................................... 19 Nature Conservancy.................................... 53 NCB.................................................................. 73 NMS Food & Facilities, Muse....................83 Northern Air Cargo............................136, 137 Northrim Bank............................................... 57 Northrim Benefits Group...........................43 Novagold Resources Inc............................113 Oxford Assaying & Refining Inc............108 Pacific Pile & Marine.................133, 134, 135 Parker Smith & Feek....................................23 PenAir.............................................................80

Personnel Plus.............................................142 Pogo Mine.................................................... 107 Princess Lodges - Westmark Hotels......... 9 Ravn Alaska.................................................... 55 Ritchie Brothers Auctioneers.................109 Samson Tug & Barge....................................69 Seekins Ford Lincoln Mercury Fleet.....125 Seward Convention & Visitors Bureau...82 Span Alaska Transportation Inc................ 33 Stellar Designs Inc..................................... 144 The Odom Corp............................................47 Think Office.................................................. 70 TOTE Maritime Alaska.................................17 Truckwell of Alaska....................................123 Tulalip Casino Resort...................................85 Turnagain Marine Construction............ 130 Ukpeagvik Inupiat Corp...............................31 United Way of Alaska..................................45 Usibelli Coal Mine.........................................39 Valdez Convention & Civic Center.........90 Vigor Alaska.................................................. 127 Visit Anchorage............................................. 77 Voyager Inn..................................................... 73 Washington Crane & Hoist........................34 Waste Management...................................128

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152

Alaska Business Monthly | April 2016 www.akbizmag.com

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