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LEGISLATIVE PRIORITIES | MENTAL HEALTH | PORTS & HARBORS | BUILDING ALASKA | MICROFINANCE March 2017 Digital Edition

NOME

CAUSEWAY

POINT SPENCER

POINT HOPE

ARCTIC PORTS

CAPE DARBY

PORT CLARENCE

FEASIBILITY STUDY

MEKORYUK

POINT LAY MOORING BASIN

BETHEL

NORTHWEST PASSAGE

PRUDHOE BAY

MARY SACHS ENTRANCE

ARCTIC PORTS

NORTHER SEA ROUTE

CAPE DARBY

POINT LAY

BETHEL

RED DOG PORT

PORT FRANKLIN

KOTZEBUE POINT FRANKLIN

CAPE BLOSSOM

CAPE DARBY

MEKORYUK

ST. PAUL ISLAND

SUSPENDED

NOME

POINT SPENCER

WAINWRIGHT

DOCK

US CORPS OF ENGINEERS

BETHEL

NUNIVAK ISLAND

WAINWRIGHT

DREDGED MATERIAL DISPOSAL SITE

MARY SACHS ENTRANCE

UTQIAGVIK

SUSPENDED

MOORING BASIN

CAPE DARBY

ST. PAUL ISLAND

MOORING BASIN

PORT CLARENCE

NUNIVAK ISLAND

MEKORYUK

NORTHWEST PASSAGE CAPE THOMPSON

POINT LAY

CAPE DARBY

FEASIBILITY STUDY

MOORING BASIN SUSPENDED

NORTHWEST PASSAGE

CAPE BLOSSOM

UTQIAGVIK

POINT LAY

ST. PAUL ISLAND

NUNIVAK ISLAND

POINT HOPE PRUDHOE BAY

DEEP DRAFT

NOME

BETHEL

UTQIAGVIK

SUSPENDED

ARCTIC PORTS

ST. LAWRENCE

ARCTIC PORTS

ST. LAWRENCE

SUSPENDED

NOME

POINT LAY

POINT HOPE

ARCTIC PORTS US CORPS OF ENGINEERS

DEEP-DRAFT

NOME

DEEP-DRAFT

UTQIAGVIK

NORTHER SEA ROUTE

DOCK

WAINWRIGHT

NUNIVAK ISLAND

BREAKWATER

POINT SPENCER

DOCK

POINT SPENCER

KOTZEBUE

CAPE BLOSSOM

US CORPS OF ENGINEERS

KOTZEBUE

NORTHER SEA ROUTE

DOCK

ARCTIC PORTS

DOCK

MEKORYUK

POINT FRANKLIN MEKORYUK DOCK BREAKWATER

FEASIBILITY STUDY

DREDGED MATERIAL DISPOSAL SITE

NORTHERN SEA ROUTE

ST. PAUL ISLAND

BREAKWATER

KOTZEBUE

DOCK

NUNIVAK ISLAND

DOCK

SUSPENDED ST. PAUL ISLAND PORT CLARENCE

BREAKWATER

SUSPENDED

CAPE THOMPSON

NUNIVAK ISLAND

UTQIAGVIK

FEASIBILITY STUDY

RED DOG PORT MOORING BASIN

POINT FRANKLIN

WAINWRIGHT

KOTZEBUE

UTQIAGVIK

RED DOG PORT NORTHERN SEA ROUTE MEKORYUK

POINT HOPE

DEEP-DRAFT

NOME CAPE BLOSSOM

POINT SPENCER

POINT SPENCER ST. LAWRENCE PRUDHOE BAY

SUSPENDED

UTQIAGVIK

RED DOG PORT

PORT CLARENCE

SUSPENDED CAUSEWAY

CAPE BLOSSOM

CAPE BLOSSOM

POINT SPENCER

ST. LAWRENCE

DREDGED MATERIAL DISPOSAL SITE

CAUSEWAY

NOME

POINT LAY MARY SACHS ENTRANCE

POINT HOPE

BETHEL

CAUSEWAY

CAPE BLOSSOM

BREAKWATER

NOME

RED DOG PORT

RED DOG PORT

CAUSEWAY

WAINWRIGHT

ARCTIC PORTS

SUSPENDED

ST. PAUL ISLAND

POINT FRANKLIN

CAPE BLOSSOM

RED DOG PORT

DREDGED MATERIAL DISPOSAL SITE

US CORPS OF ENGINEERS

DEEP-DRAFT POINT SPENCER

PORT CLARENCE

MEKORYUK

POINT HOPE

BREAKWATER

CAPE DARBY

ST. PAUL ISLAND PRUDHOE BAY

ARCTIC PORTS FEASIBILITY STUDY

POINT FRANKLIN

NOME

NORTHERN SEA ROUTE

US CORPS OF ENGINEERS

UTQIAGVIK

NORTHERN SEA ROUTE

DEEP-DRAFT

MOORING BASIN

SUSPENDED

SUSPENDED

DOCK

PORT CLARENCE

POINT FRANKLIN FEASIBILITY STUDY

NOME

UTQIAGVIK

CAPE THOMPSON

BREAKWATER

BETHEL

PRUDHOE BAY

NOME

CAUSEWAY KOTZEBUE

US CORPS OF ENGINEERS

POINT LAY

SUSPENDED

CAPE THOMPSON

WAINWRIGHT NORTHWEST PASSAGE

NORTHWEST PASSAGE

BETHEL NUNIVAK ISLAND

ST. LAWRENCE

WAINWRIGHT

KOTZEBUE

US CORPS OF ENGINEERS

CAPE DARBY

POINT FRANKLIN

BREAKWATER

DOCK

MARY SACHS ENTRANCE


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M a rch 2 017 Digit a l Edition TA BLE OF CONTENTS

DEPARTMENTS

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

ABOUT THE COVER: Work on a feasibility study to address the need for Arctic deep-draft ports in Alaska was suspended in October 2015 after Shell pulled out of the Chukchi Sea. The February 2015 “Draft Integrated Feasibility Report, Draft Environmental Assessment (EA), and Draft Finding of No Significant Impact (FONSI) Alaska Deep-Draft Arctic Port System Study” by the US Army Corps of Engineers - Alaska District, Pacific Ocean Division inspired this month’s cover.

7 110 112 115 116 119 120 122

At this time, the recommended alternative in the study, a project to turn the Port of Nome into an Arctic port with navigational aids, channel and basin dredging, causeway extension, and local service facilities is on hold. The elements of engineering an Arctic harbor are detailed in an article by Darryl Jordan that begins on page 56. Cover Design by David Geiger, ABM Art Director

ARTICLES The main reception area for Providence Medical Group Behavioral Health, located at 3760 Piper Street in Anchorage. Courtesy of Providence Health & Services Alaska

40 Legislative Priorities Special Section 8 | Legislative Priorities for 2017

OIL & GAS

16 | Bear Safety for North Slope Workers

Training is key—for people and bears By Julie Stricker

24 | Manufacturing Oilfield Modules Locally

Keeping busy in the downturn By Susan Harrington

4

FINANCIAL SERVICES

30 | Microfinance Potential in Alaska

By Anneliese Trainer

HR MATTERS

32 | Maintaining Motivation, Employee Engagement, and Productivity in a Downturn Economy Work culture is crucial to positive approach and attitude By Kevin M. Dee

CONSULTANT’S CORNER 34 | Insuring Your Future Exit

By Mel B. Bannon

INSURANCE

36 | Commercial Insurance Essential for Business Survival Businesses need to consider their ‘appetite for risk’ By Tracy Barbour

HEALTH & WELLNESS 40 | Alaska’s Mental and

Behavioral Health Providers

Promoting Wellness for Consumers of All Ages By Tracy Barbour

TRANSPORTATION

44 | Ports and Harbors 2017 A look at waterfront construction this year By Sam Friedman

Alaska Business Monthly | March 2017www.akbizmag.com


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M a rch 2 017 Digit a l Edition TA B L E

O F

C O N T E N T S

Building Alaska Special Section

Photo courtesy of YKHC

68

YKHC President and CEO Dan Winkelman and Arcadis Senior Project Manager Kent Crandall in the men’s circle last May on a Cultural Visit to Shageluk for the Dr. Paul John Calricaraq Project in Bethel.

ARTICLES

The Peterson Group is the general contractor for CIHA’s 3600 Spenard project in in Anchorage.

56 | Engineering an Arctic Harbor is a Complex Specialty

Sedimentation, tidal fluctuations, and noise challenges abound By Darryl Jordan

60 | 2017 Alaska Construction Spending Forecast

By Scott Goldsmith and Pamela Cravez For Associated General Contractors of Alaska Construction Industry Progress Fund, January 2017.

68 | Dr. Paul John Calricaraq Project Underway in Bethel Combining culture and innovation for the healthiest people By Susan Harrington

72 | Introduction to Trades Program in Fifth Year

Teaching basic skills to become an electrician, welder, or construction worker By Julie Stricker

6

Photo by Tasha Anderson for ABM

84 76 | John Eng

A cornerstone of the construction industry By Shehla Anjum

82 | Preleasing Undeveloped Property

Pointers for commercial tenants By Jeff Grandfield and Dale Willerton

84 | Cook Inlet Housing

Authority’s 3600 Spenard Building up affordable housing and the Anchorage community By Tasha Anderson

88 | Alaska Native

Corporation Construction Subsidiaries Companies are building for the future By Tom Anderson

92 | Spring Construction Round-Up

Compiled by ABM Staff

98 | Alaska Business Monthly’s 2017 Construction Directory

Alaska Business Monthly | March 2017www.akbizmag.com


FROM THE EDITOR VOLUME 33, NUMBER 3 Published by Alaska Business Publishing Co. Anchorage, Alaska EDITORIAL STAFF Managing Editor Susan Harrington 257-2907 editor@akbizmag.com

Associate Editor Tasha Anderson 257-2902 tanderson@akbizmag.com Art Director David Geiger 257-2916 design@akbizmag.com Art Production Linda Shogren 257-2912 production@akbizmag.com Photo Contributor Judy Patrick BUSINESS STAFF President Billie Martin VP & General Manager Jason Martin 257-2905 jason@akbizmag.com VP Sales & Marketing Charles Bell 257-2909 cbell@akbizmag.com Advertising Account Manager Janis J. Plume 257-2917 janis@akbizmag.com Advertising Account Manager Holly Parsons 257-2910 hparsons@akbizmag.com Advertising Account Manager Christine Merki 257-2911 cmerki@akbizmag.com Accounting Manager Ana Lavagnino 257-2901 accounts@akbizmag.com Customer Service Representative Emily Olsen 257-2914 emily@akbizmag.com 501 W. Northern Lights Boulevard, Suite 100 Anchorage, Alaska 99503-2577 (907) 276-4373 | Toll Free: 1-800-770-4373 Fax: (907) 279-2900 www.akbizmag.com Editorial email: editor@akbizmag.com ALASKA BUSINESS PUBLISHING CO., INC. ALASKA BUSINESS 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, ©2017, 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: Email query letter to editor@akbizmag.com. 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. Email specific requests to editor@ akbizmag.com. 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.

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Legislative Priorities and Legislative Action Never the twain shall meet?

T

his legislative session in Juneau is all about money and the state’s wallet, or it should be. Just as a reminder: Revenue is In and the Budget is Out. So far, not much legislative action has been taken that would create a balanced or sustainable budget. We’ve shared top legislative priorities from leading advocacy groups as well as the long list of bills and resolutions filed through the end of January (page 8). The priorities of the Alaska business community are pretty clear about what needs to be done—what isn’t clear is any correlation between legislative action so far and the priorities. To borrow from Rudyard Kipling’s The Ballad of East and West, “Oh East is East and West is West, and never the twain shall meet.” Is this the fate of Alaska’s priorities and actions? Not listed in the long list of bills filed is House Bill 111, filed hours before going to press on February 8. It is rather long and obtuse, obstinate, and awful. Alaska business and industry leaders voiced immediate outcry. “HB 111 is yet another change to oil and gas taxes in a series of changes that creates uncertainty for national and global investors. … Businesses cannot thrive in an uncertain environment where tax policies continually change … While there is little we can do about the volatile nature of oil prices, we can control and maintain stable policies. Making and keeping Alaska competitive nationally and globally is critical to Alaska’s long-term sustainability.” —Curtis Thayer, President & CEO, Alaska Chamber “Today’s bill, if passed, would represent the seventh oil tax law change in twelve years. Combine that reality with the governor’s repeated vetoes of the earned tax credits, and Alaska looks like an unreliable, unstable, and unpredictable business partner. … We encourage committee members to view this bill through the lens of what will benefit the State the most in the long run: more oil production, more investment in Alaska’s oil fields, and more economic activity throughout the state. HB 111, as written, will not achieve any of those things and jeopardizes recent gains like the first oil production increase in fourteen years, billions of dollars of new investment in Alaska’s oil patch, and optimism about exciting new oil fields with billions of barrels of potential.” —Kara Moriarty, President & CEO, Alaska Oil and Gas Association We couldn’t agree more with Thayer and Moriarty. We challenge the Alaska Legislature to stop wasting time and get down to business. —Susan Harrington Managing Editor March 2017 | Alaska Business Monthly

7


SPECIAL SECTION

Legislative Priorities

Legislative Priorities for 2017

T

he 30th Alaska State Legislature convened on January 17. We’ve compiled legislative priorities from several Alaska industry organizations to share with readers. We encourage all to take an active part in this session by letting legislators and the governor know what’s on your mind. It’s easy to contact them all. Here’s a link to a PDF of everyone’s phone number, along with easy instructions for email addresses: http://akleg.gov/docs/pdf/800numbers.pdf. Also, directly email Governor Bill Walker at governor@alaska.gov or telephone his office in Juneau, 907-465-3500; Anchorage, 907-269-7450; or Fairbanks, 907-451-2920. Email Lieutenant Governor Byron Mallott at ltgov@alaska.gov or call his office at 907465-3520. The top priority for most organizations this year regards the budget, which comes as no surprise. Some organizations have a brief list and others have more lengthy ones. We’ve only listed the top few priorities for each organization, but readers can find the full lists of priorities and policy positions on each organization’s website.

Resource Development Council for Alaska Advocate to limit unrestricted general fund (UGF)* spending to sustainable level of $4.1 billion or less. *UGF includes: Operating budget, capital budget, statewide obligations, but does not include deferral of liabilities. Advocate for tax policy and regulatory stability that enhances the State of Alaska’s competitiveness for all industries to attract new investment and grow the economy. Alaska budget policy should focus first on reversing the unsustainable budget by finding efficiencies and focusing on a series of annual reductions. It must include framework to use the Permanent Fund earnings to support essential services. Finally, after reducing the UGF to sustainable levels, additional, broad-based revenue options should be considered. The Alaska Support Industry Alliance Lay the foundation for a sustainable long-range fiscal plan:  Limit FY 2018 unrestricted general fund (UGF) spending to $4.0 billion or less, and implement a plan to use a portion of the earnings generated by the Permanent Fund for essential government services.  Oil: DO NO HARM. Maintain or implement policies that increase production, attract investment, and encourage exploration and development.  Gas: Continue to progress a viable LNG project. 8

 Mining: Maintain permitting and tax systems that attract investment.

palities must be given the tools to provide for themselves.

 Infrastructure: Invest in necessary infrastructure that makes exploration, development, and production of our natural resources competitive with other jurisdictions.

Revenue Sharing (Community Assistance) The Alaska Municipal League realizes that the State is in a fiscal crisis. We have attempted to work with the Legislature through the decrease of Revenue Sharing by half. We cannot agree to the ending of Revenue Sharing, however. As our Revenue Sharing goes down and as the State continues to cost shift to municipalities, many local governments will find themselves in the position of closing their doors. The current $30 million is a small part of the yearly state budget. With the recent loss of Timber Receipts and the potential loss of PILT, a sustainable and predictable allocation is necessary for municipal budget purposes. This money allows for the provision of basic local services and as a means to keep taxes down.

Alaska Chamber of Commerce Support reduction of spending to sustainable levels. The Alaska Chamber supports reductions to UGF Spending to $4.5 billion or less by FY 2018. Support a series of annual reductions in the state operating budget and the creation of an endowment/sustainability model or similar framework to use Permanent Fund earnings to support essential state services and protect the PFD Program. Oppose a natural gas reserves tax. Anchorage Chamber of Commerce Develop and Implement a Sustainable Fiscal Plan: The Anchorage Chamber of Commerce strongly encourages the governor and the legislature to take immediate action to implement a sustainable, long-term solution to address Alaska’s fiscal challenges. Reduce the Budget: The Anchorage Chamber of Commerce members highly support a significant reduction in the state budget. Consider New, Broad-Based, Sustainable Revenue Sources: The Anchorage Chamber of Commerce members support a statewide sales tax, the creation of a statewide lottery, and some use of the Permanent Fund earnings. Provide Funding for Alaska’s Most Strategic Port: The Port of Anchorage, Alaska largest port, annually handles 3.5 million tons of goods bound for over 200 communities across our state. Fairbanks Chamber of Commerce #1 Priority: Support a comprehensive, long-term sustainable fiscal plan for the State of Alaska Additional Priority: Advocate for the stated goals of the Interior Energy Project. Alaska Municipal League The Alaska Municipal League supports a Legislative adoption of a sustainable budget plan that does not rely primarily on cuts but on new sources of revenues. We feel that the leaders of our State must immediately adopt changes that stop the bleeding that we are currently experiencing. Despite the cuts experienced this last year by local governments, municipalities must continue to provide basic and essential services. The Alaska Municipal League stands behind their updated FY 2017 Sustainability Plan and encourages the Legislature to quickly take action. As more responsibilities are passed down to the “political subdivisions” of the state, munici-

PERS/TRS The Alaska Municipal League recently fought back a proposal by the Alaska State Legislature that would have seen municipalities acquire a larger percentage of the PERS/TRS unfunded liability. The PERS/TRS system is the legal and moral responsibility of the State, as it is THEIR program. Municipalities simply pay an amount set by the State in order to be participants in the plan. We do not provide retirement benefits; we do not have a say in any of the fiduciary decisions. AML and its member municipalities will hold fast to the previously agreed upon 22 percent of salary towards the pay down of the unfunded liability. City of Nome  Water and Sewer Infrastructure Improvements  Design of Arctic Deep Draft Port at Nome  Full Funding Support for the Power-Cost Equalization Program

City of Fairbanks  Maintaining Current PERS Contribution Rates  Preserving Municipal Revenue Sharing  Finding New State Revenue Sources

Alaska Power Association The 2017 legislature MUST address Alaska’s fiscal shortfall:  Support for continued deployment of economically feasible renewable energy: Renewable Energy Fund and Emerging Energy Technology Fund  Support for legislation requiring state agencies to clearly define end-user costs of new regulations

Alaska Business Monthly | March 2017www.akbizmag.com


P ABR Inc. Premier environmental research and services

F

ounded in 1976 as Alaska Biological Research, ABR Inc. has been providing biological and ecological consulting services for 40 years. Now, as its founders move toward retirement, the company is passing the torch to a new generation of managers and leaders. “We are very pleased to let the business community in Alaska know that the future of ABR is in good hands as we turn over management responsibilities to three directors: Terry Schick, PhD (business development); Adrian Gall PhD (research and project management); and Janet Daley, CMA (business administration),” says President and Board Chair Steve Murphy. “In addition, the founders will be well represented on the board of directors for the foreseeable future.” HIGH-CALIBER SERVICES With offices in Fairbanks and Anchorage, ABR is an environmental services company that serves both private and public sector clients in support of development and conservation issues in Alaska and nationally. ABR provides expertise in wildlife and fisheries science, marine biology, landscape ecology, wetlands and soil science, ecological restoration, statistics, GIS mapping and remote sensing analysis, permitting support, and environmental documentation (e.g., NEPA). ABR has been engaged in most of the major development initiatives in Alaska in recent years, including Susitna-Watana Hydro, Pebble Mine,

and numerous onshore and offshore projects for the oil and gas industry. “We have 40 years’ experience in Alaska, and that includes awareness of and access to much of the data for environmental work throughout the state,” Gall says. “That familiarity translates to efficiency for our clients.”

connections in Alaska, and focus on objective science create valuable benefits for its clients. As a testament to its expertise, ABR has received a variety of honors. In 2016, it was recognized as the Outstanding Small Business in Philanthropy by the Association of Fundraising Professionals–Alaska Chapter. Also in 2016, ABR co-founder Bob Ritchie received the Pete Isleib Award in Avian Conservation, and senior scientist Bob Day was named a Fellow of the American Ornithologists’ Union. ABR is a stable company that is committed to serving Alaska for another 40 years and beyond. “As ABR develops a new generation of leaders and managers and pivots to becoming an employee-owned business, our focus on providing state-of-the-art consulting services with an unwavering commitment to quality and integrity will remain our trademark,” Murphy says.

KEYS TO SUCCESS ABR is well known for promoting rigorous and objective science within the context of its triple-bottom-line business philosophy: economic viability, environmental stewardship, and social responsibility. This has been integral to the company’s success and longevity. “Through our focus on rigorous science, we have garnered a reputation for high-quality products with industry, resource management agencies, and other stakeholders in Alaska,” Schick says. The ability to attract and maintain a highly-skilled and dedicated workforce has also been critical for ABR, which has 45 employees in Fairbanks and Anchorage. Most of ABR’s 20 senior scientists—6 with PhDs and 14 with master’s degrees—have 20-plus years of service with the firm. ABR’s dedicated Terry Schick, PhD, Director of Business Development PO Box 240268 • Anchorage, Alaska 99524 tenured staff, longstanding personal (907) 344-6777 • abrinc.com

Pai d

Adve r tis e me n t


LEGISLATIVE PRIORITIES SPECIAL SECTION

In case you’re wondering how the legislators actions are aligning with these particular priorities, here is a list of the bills, resolutions, and joint resolutions that were filed at press time, along with prime sponsors and status as of January 30. Bill HB 1 HB 2 HB 3 HB 4 HB 5 HB 6 HB 7 HB 8 HB 9 HB 10 HB 11 HB 12 HB 13 HB 14 HB 15 HB 16 HB 17 HB 18 HB 19 HB 20 HB 21 HB 22 HB 23 HB 24 HB 25 HB 26 HB 27 HB 28 HB 29 HB 30 HB 31 HB 32 HB 33 HB 34 HB 35 HB 36 HB 37 HB 38 HB 39 HB 40 HB 41 HB 42 HB 43 HB 44 HB 45 HB 46 HB 47 HB 48 HB 49 HB 50 HB 51 HB 52 HB 53 HB 54 HB 55 HB 56 HB 57 HB 58 HB 59 HB 60 HB 61

Short Title Election Registration And Voting Priv Employer Voluntary Vet Preference Natl Guard Leave/Reemployment Rights Military Facility Zones Med Ins: Depends. Of Deceased Fire/Police Jonesville Public Use Area Display Of Photos Of Marked Ballot Enforcement Of Foreign Protective Orders Pharma Bd & Employees;Drug Dist/Manufac Child In Need Of Aid/Protection; Duties Rip For Public Employees/Teachers Nonemergency Removal Of Child No St/Muni Funds: Fed Immigrat Registry Leg. Approval Of Bristol Bay Sulfide Mine Marriage & Spouses Driv. License Req; Disability:id &Training Fish & Game Conservation Program Race Classics Ban Neonicotinoid Pesticides Solemnize Marriage: Elected Officials Approp. For 2016 Pfd Supplemental Payment 2016 Pfd Supplemental Payment Ins. For Depends. Of Deceased Fire/Police List U-47700 As A Controlled Substance Insurance Coverage For Contraceptives Nursing Mothers In Workplace High-Risk Chemicals For Child Exposure Cosmetics Ingredients Disclosure Ban Sale Of Genetically Modified Fish Paid Sick Leave Sexual Assault Examination Kits Label Genetically Modified Food Establish May 31 As Katie John Day Alcohol Sales Near School/Church Safe Streets/Communities Fund/Payments Tax: Income From Non C Corp Entities Pers Credit/Workers Comp. Police & Fire Workers’ Compensation: Death Benefits Game Management Trapping Near Public Trails Joint Prime Sponsorship Of Bills Forfeiture & Seizure: Procedure; Limits New Drugs For The Terminally Ill Legislative Ethics: Voting & Conflicts Equal Pay & Minimum Wage Act Procure Ak Fish, Ag Prod.; Raw Milk Sales Municipal Pers Contributions/Interest Architects,Engineers, Surveyors: Extend Bd Extend Board Of Direct-Entry Midwives Prof. Services In State-Funded Contracts Small Vessel Wastewater Exemption Pre-Elementary School Programs/Plans Limit Flame Retardant Items/Furniture Voluntary Termination Of Life Governor: Regulation Notice To Legislature Commercial Fishing Loans Approp: Operating Budget/Loans/Funds Approp: Capital Budget Approp: Mental Health Budget Motor Fuel Tax; Transportation Maint. Fund Perm. Fund:deposits; Dividend;Earnings

Prime Sponsor(s) Current Status Representative Tuck (H) Sta Representative Tuck (H) Mlv Representative Tuck (H) Mlv Representative Thompson (H) Mlv Representative Millett (H) Fin Representative Rauscher (H) Res Representative Kreiss-Tomkins (H) Sta Representative Edgmon (H) Cra Representative Saddler (H) L&C Representative Wilson (H) Hss Representative Kawasaki (H) Sta Representative Wilson (H) Hss Representative Josephson (H) Sta Representative Josephson (H) Fsh Representative Josephson (H) Jud Representative Thompson (H) Fin Representative Josephson (H) Res Representative Ortiz (H) L&C Representative Drummond (H) Res Representative Claman (H) Sta Representative Eastman (H) Sta Representative Eastman (H) Sta Representative Josephson (H) Fin Representative Millett (H) Jud Representative Claman (H) Hss Representative Tarr (H) L&C Representative Tarr (H) Res Representative Tarr (H) Res Representative Tarr (H) Fsh Representative Tarr (H) L&C Representative Tarr (H) Sta Representative Tarr (H) Res Representative Foster (H) Cra Representative Tarr (H) Cra Representative Gara (H) Cra Representative Gara (H) L&C Representative Josephson (H) Fin Representative Josephson (H) L&C Representative Josephson (H) Res Representative Josephson (H) Res Representative Gara (H) Fin Representative Wilson (H) Jud Representative Grenn (H) Hss Representative Grenn (H) Jud Representative Tarr (H) Sta Representative Tarr (H) Sta Representative Foster (H) Cra Representative Kito (H) L&C Representative Kito (H) L&C Representative Kito (H) Sta House Transportation (H) Tra Representative Kawasaki (H) Edc Representative Drummond (H) Res Representative Drummond (H) Hss Representative Neuman (H) Sta Representative Ortiz (H) Fsh House Rules By Request Of The Governor (H) Fin House Rules By Request Of The Governor (H) Fin House Rules By Request Of The Governor (H) Fin House Rules By Request Of The Governor (H) Tra House Rules By Request Of The Governor (H) Fin

Status Date 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/27/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/23/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/20/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017

10

Alaska Business Monthly | March 2017www.akbizmag.com


Different Name. Same People and High Level of Service

I

n December 2016, Acrisure LLC acquired the commercial, small business, and employee benefits business lines of Alaska USA Insurance Brokers and began doing business as Insurance Brokers of Alaska. Michigan-based Acrisure also retained the 55 employees who were associated with the acquired lines of business. Customers of Insurance Brokers of Alaska will now have access to the strength, capabilities, and resources of Acrisure. The company has been experiencing rapid expansion nationwide, closing over 60 acquisitions in 2016 alone. With more than 2,000 employees and a presence in 26 states, Acrisure is the country’s thirteenth-largest independent insurance broker. The acquisition will mean very little adjustment for the company’s current clients. “Their service teams and contacts have not changed,” says Insurance Brokers of Alaska President Tim Maudsley. “Our team is intact, and the contacts that clients have had for years are still their contacts. And we still operate in the same locations.”

Increased Services and Benefits

With Acrisure’s recent acquisition in Alaska, clients of Insurance Brokers of Alaska will have access to additional services and other enhancements. “Acrisure has access to broader insurance markets; we will bring an expanded choice in insurance companies that may have not been available before,” Maudsley says. “Acrisure has departments that dedicate their efforts toward risk control and claims, so we can assist our clients in a proactive way to manage their claims and risk.” Insurance Brokers of Alaska also has access to a specialty cap insurance product that helps employees guard against the financial risks associated with paying high out-of-pocket medical expenses. The product—which helps people protect their income and assets—is ideal for groups with high-deductible plans and may be offered as employer-funded, employee-paid,

or a combination of the two. “Insurance Brokers of Alaska has access to a specialty division that is dedicated to handling this coverage, and we are ready to roll this out to Alaska companies,” Maudsley says. Additionally, Insurance Brokers of Alaska has another new offering for clients: specialty practices that focus on specific industries. These specialty practices can provide a high level of service and unique services for industries such as construction, transportation, and tourism. “We want to make sure that what we bring to our clients meets or exceeds what they’ve had in the past,” Maudsley says.

Plans for Further Expansion

In the future, Insurance Brokers of Alaska has plans for further expansion in Alaska through a combination of additional agency acquisitions and organic growth by offering additional value-added products and services. In the meantime, the company will build upon its 30 years of experience and history in Alaska to continue to serve its clients and dominate the insurance industry. “Insurance Brokers of Alaska provides the most comprehensive insurance service for businesses in the state of Alaska,” Maudsley says. “We are

dedicated to Alaska and provide more services and access to more markets than any other broker.”

500 West 36th Ave., Suite 310 I Anchorage, AK 99503 I (907) 365-5100 I insurancebrokersak.com –

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Insurance Brokers of Alaska


LEGISLATIVE PRIORITIES SPECIAL SECTION

Bill HB 62 HB 63 HB 64 HB 65 HB 66 HB 67 HB 68 HB 69 HB 70 HB 71 HB 72 HB 73 HB 74 HB 75 HB 76 HB 77 HB 78 HB 79 HB 80 HB 81 HB 82 HB 83 HB 84 HB 85 HB 86 HB 87 HB 88 HB 89 HB 90 HB 91 HB 92 HB 93 HCR 1 HCR 2 HCR 3 HJR 1 HJR 2 HJR 3 HJR 4 HJR 5 HJR 6 HJR 7 HJR 8 HJR 9 HR 1 HR 2 HR 3 HR 4 SB 1 SB 2 SB 3 SB 4 SB 5 SB 6 SB 7 SB 8 SB 9 SB 10 SB 11 SB 12 SB 13 SB 14 SB 15 SB 16

Short Title Adoption Of Regs; Limitations; Void Regs Transfer Duties From Dcced Reading Proficiency Task Force; Dyslexia 2016 Pfd Supplemental Payment Approp: 2016 Pfd Supplemental Payment Food Stamps:work Requirements;Time Limits Food Stamps & Child Support Services Repeal Workers’ Comp Appeals Commission Approval: Royalty Oil Sale To Petro Star No St. Employee Pay Increase For 2 Yrs Collection Of Biometric Information Name State Ferries: M/V Tazlina & Hubbard Driver’s License & Id Cards & Real Id Act Gun Violence Protective Orders Mariculture Revolving Loan Fund 2017 Revisor’s Bill Indigenous Peoples Day Omnibus Workers’ Compensation Muni Energy Improvemnt:assessmnts/Bonds Ak Energy Efficiency Loans: Eligibility Restricted Off Hwy Driver’s License Teachers & Pub Employee Retirement Plans Municipal Property Tax Exemption Municipal Land Selections: Petersburg Student Loan Default/Occ. License Renewal Conflict Of Interest: Bd Fisheries/Game Board Of Fisheries Membership Licensing Radiologic Technologists Occ. Licensing Fees; Investigation Costs Apoc Registration Fees; Lobbyist Tax Appropriation Limits Ak Railroad Rights Of Way Amend Uniform Rules: Abstain From Voting Respond To Adverse Childhood Experiences April 2017: Child Abuse Prevention Month Const. Am: Repeal Marriage Section Const Am: Appropriation Limit Const. Am: 90 Day Regular Session Support Anwr Development; Related Issues Endorsing Anwr Leasing; Related Issues Support Road: King Cove & Cold Bay Const. Am.: Appropriation Limit Ak Legally Acquired Ivory Use Exemption Canadian Mines On Transboundary Rivers H.sp.cmte: Arctic Policy/Econ Dev./Tourism House Special Committee On Energy House Special Committee On Fisheries House Special Cmte: Military/Vet Affairs Approp: 2016 Pfd Supplemental Payment 2016 Pfd Supplemental Payment Small Vessel Wastewater Exemption; 1% Art Licensure Of Non-Chemical Barbering Political Contribution Limits/Prohibition Industrial Hemp Production Museum Construction Grant Program Pfd Contributions To Tribal Governments Military Facility Zones Adult Foster Care For Disabled; Medicaid Prohibit Taking Antlerless Moose Employment Tax For Education Facilities Legislative Salary And Per Diem Transportation Network Companies E-Cigs: Sale To And Possession By Minor Fiduciary Access To Digital Assets

Prime Sponsor(s) Current Status Representative Pruitt (H) Sta Representative Pruitt (H) Sta Representative Drummond (H) Edc Representative Rauscher (H) Sta Representative Rauscher (H) Sta Representative Eastman (H) Hss Representative Eastman (H) Hss House Rules By Request Of The Governor (H) L&C House Rules By Request Of The Governor (H) Res House Rules By Request Of The Governor (H) Sta Representative Thompson (H) Jud House Rules By Request Of The Governor (H) Tra House Rules By Request Of The Governor (H) Sta Representative Tarr (H) Jud Representative Ortiz (H) Fsh House Rules By Request Of Legislative Council (H) Jud Representative Westlake (H) Cra House Rules By Request Of The Governor (H) L&C Representative Wool (H) Ene Representative Kreiss-Tomkins (H) Ene Representative Kreiss-Tomkins (H) Sta Representative Kito (H) L&C Representative Kreiss-Tomkins (H) Cra Representative Kreiss-Tomkins (H) Cra Representative Claman (H) Edc Representative Stutes (H) Fsh Representative Stutes (H) Fsh Representative Tuck (H) L&C Representative Kito (H) L&C Representative Kito (H) Sta Representative Tilton (H) Jud Representative Kopp (H) Res Representative Grenn (H) Jud Representative Tarr (H) Hss Representative Tarr (H) Hss Representative Josephson (H) Sta Representative Rauscher (H) Sta Representative Claman (H) Sta Representative Talerico (H) Aet Representative Westlake (H) Res Representative Edgmon (H) Rls Representative Tilton (H) Sta Representative Foster (H) Cra Representative Ortiz (H) Fsh House Rules Transm To Governor House Rules Transm To Governor House Rules Transm To Governor House Rules Transm To Governor Senator Dunleavy (S) Sta Senator Dunleavy (S) Sta Senator Stedman (S) Res Senator Micciche (S) L&C Senator Meyer (S) Sta Senator Hughes (S) Res Senator Stevens (S) Cra Senator Stevens (S) Sta Senator Coghill (S) Cra Senator Dunleavy (S) Hss Senator Bishop (S) Res Senator Bishop (S) L&C Senator Wielechowski (S) Sta Senator Costello (S) L&C Senator Stevens (S) L&C Senator Hughes (S) L&C

Status Date 01/18/2017 01/18/2017 01/20/2017 01/20/2017 01/20/2017 01/20/2017 01/20/2017 01/20/2017 01/20/2017 01/20/2017 01/20/2017 01/23/2017 01/23/2017 01/23/2017 01/25/2017 01/25/2017 01/25/2017 01/25/2017 01/25/2017 01/25/2017 01/25/2017 01/27/2017 01/27/2017 01/27/2017 01/27/2017 01/30/2017 01/30/2017 01/30/2017 01/30/2017 01/30/2017 01/30/2017 01/30/2017 01/20/2017 01/23/2017 01/23/2017 01/18/2017 01/18/2017 01/18/2017 01/20/2017 01/27/2017 01/30/2017 01/25/2017 01/27/2017 01/30/2017 01/24/2017 01/24/2017 01/24/2017 01/24/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017

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Alaska Business Monthly | March 2017www.akbizmag.com


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Ashbreez Boatworks LLC High quality, professional boat repair, boat building and systems installation

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hen it comes to boat repair, boat building and systems installation, three words sum up Ashbreez Boatworks’ services: versatile, professional and consistent. The family-owned business offers an array of services, including major boat repair, fiberglass repair, repainting and refinishing, electrical work, fabrication and systems installations. Ashbreez also does repowers from inboard to outboard engines, as well as large and small refits. “The only thing we don’t do is internal engine work,” says owner Chad Morse. When completing hull repairs, Ashbreez works in all the major mediums, including fiberglass, aluminum and composite wood. The company can repair virtually any type of hull damage and offers solutions for issues below the waterline, including blister repair, barrier coating and bottom painting. Internally, Ashbreez installs electronics, heaters, fuel systems, new engine controls and engine instrumentation. “We know boats and the challenges of boating,” Chad says. “We know what works and doesn’t work.” Ashbreez has been in the boating repair business for years, initially operating as a sole proprietorship and then launching as an LLC in 2011. Chad’s boating experience extends back to his youth when he took a boat back and forth to high school in Kodiak. Additionally, his son, Joel Morse—an accomplished boat builder and repairer—has a USCG 50-ton Master’s Near Coastal license and other ratings. The Morses’ expertise and penchant for boats have helped foster a successful business that is known for its fair prices, responsiveness to customers, and high-quality, prompt work. “We meet the agreed-upon deadline with our customers,” Chad says. “When your boat is in our shop, it’s being worked on.” If unexpected issues arise during repairs, Ashbreez notifies customers immediately. “Options are outlined, so they can make the decision about how far they want to go to repair something,” Chad says. “We don’t surprise them at the end.” To maintain the company’s high level of service, Chad and Joel—who serves as Ashbreez’s project manager—engage in continuing education, attending conferences and investing in ongoing training. Additionally, Ashbreez is a member of ABYC (American Boat and Yacht Council) and completes all of its work according to ABYC standards. The company is also a member of the America Boat Builders and Repairs Association and adheres to its code of ethics. Recently, Ashbreez began building aluminum boats in collaboration with Armstrong Marine Inc. of Port Angeles,

Wash. Ashbreez brings the company’s bare hull designs to its Anchorage shop, where customers can have their dream boat built to their specifications on a proven hull design. Currently, Ashbreez offers the Resurrection Series catamaran and St. Elias series monohulls in 28, 30 or 32 feet. “We wanted to make this available to Alaskans and be able to better meet their needs by letting them have direct input in the vessel they would like to create,” Chad says. Ashbreez is a multifaceted boatyard that is highly capable of completing a wide range of projects. “We are a professional, viable option for people when it comes to boat repair and boat building,” Chad says.,

Chad Morse, Owner • Joel Morse, Project Manager 801 E. 82nd, Unit C-1 • Anchorage, Alaska 99518 • (907) 529-1907 www.ashbreezboatworks.com

Adve r tis e me n t


LEGISLATIVE PRIORITIES SPECIAL SECTION

Bill SB 17 SB 18 SB 19 SB 20 SB 21 SB 22 SB 23 SB 24 SB 25 SB 26 SB 27 SB 28 SB 29 SB 30 SB 31 SB 32 SB 33 SB 34 SB 35 SB 36 SB 37 SB 38 SB 39 SB 40 SB 41 SB 42 SJR 1 SJR 2 SR 1 SR 2

Short Title Stevens/Inouye University Exchange Prog. New Class Of Borough New Drugs For The Terminally Ill List U-47700 As A Controlled Substance Permanent Fund: Income; Pomv; Dividends Approp: Operating Budget/Loans/Funds Approp: Capital Budget Approp: Mental Health Budget Motor Fuel Tax; Transportation Maint. Fund Perm. Fund: Deposits;Dividend;Earnings Reading Proficiency Task Force; Dyslexia Municipal Land Selections: Petersburg Repeal Workers’ Comp Appeals Commission Approval: Royalty Oil Sale To Petro Star No St. Employee Pay Increase For 2 Yrs Prescriptions For Biological Products Name State Ferries: M/V Tazlina & Hubbard Driver’s License & Id Cards & Real Id Act Individual Investments In Lng Project Optometry & Optometrists Pharma Bd & Employees; Drug Dist/Manufac Pharmacy Benefits Managers Muni Energy Improvemnt Assessmnts/Bonds Omnibus Workers’ Compensation List Tramadol As Iva Controlled Substance Driv. License Req; Disability:id &Training Const Am: Guarantee Perm Fund Dividend Const Am: Appropriation Limit Senate Special Committee: World Trade Senate Special Committee On The Arctic

Prime Sponsor(s) Current Status Senator Costello (S) Edc Senator Hoffman (S) Cra Senator Wielechowski (S) Hss Senator Meyer (S) Hss Senator Stedman (S) Sta Senate Rules By Request Of The Governor (S) Fin Senate Rules By Request Of The Governor (S) Fin Senate Rules By Request Of The Governor (S) Fin Senate Rules By Request Of The Governor (S) Tra Senate Rules By Request Of The Governor (S) Sta Senator Dunleavy (S) Edc Senator Stedman (S) Cra Senate Rules By Request Of The Governor (S) L&C Senate Rules By Request Of The Governor (S) Res Senate Rules By Request Of The Governor (S) Sta Senator Hughes (S) Hss Senate Rules By Request Of The Governor (S) Tra Senate Rules By Request Of The Governor (S) Sta Senator Costello (S) Res Senator Giessel (S) Hss Senator Giessel By Request (S) L&C Senator Giessel By Request (S) L&C Senator Coghill (S) Cra Senate Rules By Request Of The Governor (S) L&C Senator Giessel (S) Hss Senator Giessel (S) Sta Senator Wielechowski (S) Sta Senate State Affairs (S) Sta Senate Rules Transm To Governor Senate Rules Transm To Governor

Status Date 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/18/2017 01/20/2017 01/20/2017 01/20/2017 01/20/2017 01/20/2017 01/23/2017 01/23/2017 01/23/2017 01/25/2017 01/25/2017 01/25/2017 01/25/2017 01/25/2017 01/25/2017 01/27/2017 01/27/2017 01/18/2017 01/27/2017 01/27/2017 01/25/2017

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Alaska Business Monthly | March 2017www.akbizmag.com


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OIL & GAS

Bear Safety for North Slope Workers Training is key—for people and bears

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By Julie Stricker

orkers on the North Slope deal with a number of hazards such as the region’s remoteness and its notoriously poor weather. They also have to be on the lookout for wildlife, including grizzly and polar bears.

Bears Like Free Food In the 1980s it was not uncommon to see bears nosing around oil facilities, drawn by open dumpsters and landfills and unsecured food waste. Some workers even fed the bears. Bears, conditioned to human food sources, lost their fear of people and became a threat, says Justin Blank, senior environmental scientist at Fairweather LLC. In Deadhorse, a fence was put up around the landfill in the early 1990s and the bears were shut out.

“When they put the gate up, all those bears that were getting a free meal became real problems for the camps around there. Once a bear gets trained, gets food-conditioned, it’s hard for them to switch back to their natural diet, back to hunting. They’ll become problem bears nine times out of ten.”

—Justin Blank Senior Environmental Scientist Fairweather LLC

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A polar bear on the tundra amongst weather monitoring equipment near the trans-Alaska oil pipeline on the North Slope. Photo courtesy of Fairweather, LLC

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March 2017 | Alaska Business Monthly

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A polar bear walks along a gravel road on the North Slope. Photo courtesy of Fairweather, LLC

“When they put the gate up, all those bears that were getting a free meal became real problems for the camps around there,” Blank says. “Once a bear gets trained, gets foodconditioned, it’s hard for them to switch back to their natural diet, back to hunting. They’ll become problem bears nine times out of ten.” Officials in Deadhorse killed ten bears that had broken into buildings, according to a bear fact sheet published by ConocoPhillips. More than a dozen other bears were killed in defense of life and property. But in the early 1990s, the landfills were fenced off and stricter controls over food implemented, including the installation of bear-proof dumpsters at remote sites. Oilfield operators increased education and training efforts for workers and a Slope-wide Wildlife Avoidance and Interaction Plan was implemented.

Working in Bear Habit Much of the development on the North Slope is in grizzly bear habitat along rivers and wetlands and polar bear habitat near the ocean. It’s rare for polar bears to go more than fifty miles inland, Blank says. He estimates there are about 2,000 polar bears in Alaska. And while grizzlies were rarely seen on the North Slope before the oilfields were constructed, there are an estimated 1 to 2 bears per one hundred square miles near the coast, according to an Alaska Department of Fish and Game study, with higher densities near the Brooks Range. 18

“There are a variety of potential wildlife threats to safety [on the North Slope], just like there are in many places in Alaska. TAPS covers 800 miles through the Alaska wilderness, so the potential for human/wildlife interactions is present every day in nearly every location.”

— Bill Bailey Spokesman Alyeska Pipeline Service Company

Alyeska Pipeline Service Company spokesman Bill Bailey says there have been no sightings of polar bears at Pump Station 1 for nearly two decades. However, grizzly bears are occasionally seen nearby and all personnel are trained on bear safety. North Slope security personnel regularly patrol the road and marine systems in and around Prudhoe Bay, and TAPS security regularly patrols the pipeline right-of-way, Bailey says. The perimeter around Pump Station 1 is fenced. “There are a variety of potential wildlife threats to safety [on the North Slope], just like there are in many places in Alaska,” Bailey says. “TAPS covers 800 miles through the Alaska wilderness, so the potential for human/wildlife interactions is present every day in nearly every location.” Prevention is key, he says, and includes proper storage of food and waste, situational

awareness in areas where bears and other large mammals may be present, reporting and communicating to managers and workers if wildlife is present, and a strict policy against feeding wildlife. “All wildlife has the right-of-way, regardless of species,” Bailey says. “TAPS employees yield to animals and discontinue work that may interfere with their natural environment.” All workers have a standard protocol in bear country, Bailey says.  Check the area before leaving the safety of a building or vehicle.  Safely dispose of garbage. Do not leave food outside.  Move to, or remain in, a safe location if a bear of any kind is seen. Do not approach polar bears for any reason.

Alaska Business Monthly | March 2017www.akbizmag.com


OUR GOAL IS TO HELP YOU REACH YOURS.

 Immediately notify security and the on-site supervisor when a bear is seen and notify other workers.  Do not take any initiative to deal with a polar bear; only designated security officers and other trained personnel can deal with a polar bear.  Submit a report to the US Fish and Wildlife Service within 48 hours of an encounter with a polar bear.

Training the People Today, interactions between bears and workers are few, due to constant vigilance and training. Blank is a bear researcher who also trains people how to respond to a bear in the vicinity. Fairweather gets an annual permit that allows company personnel to haze animals that pose potential problems. All workers are required to complete wildlife safety classes. Every camp and company has its own procedure on bear safety, Blank says, although most follow a standard procedure. “They may evacuate the pad or get everyone inside,” he says. “Security will go out there and determine if a bear’s just passing through and they’ll just let it go on its way or if action needs to be taken.” Ideally, keeping a bear from being attracted is the first step, says Fairweather operations manager Guy Miyagishima. “First, the food waste bins are all locked so the bears can’t get in them,” he says. “You’re www.akbizmag.com

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A grizzly bear walks through an equipment yard on the North Slope. Photo courtesy of Fairweather, LLC

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March 2017 | Alaska Business Monthly

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not allowed to put food waste outside at all. It’s beyond bears. There’s fox and ravens.” Rabies is a serious threat on the North Slope, Bailey says, with foxes being the primary carriers. “Polar bears could be considered the most visible threat because they have no natural fear of humans,” Bailey says. “But other species of bears are potential threats as well. And large mammals such as moose and caribou can cause vehicle collisions and incidents.” All security and environmental personnel receive annual training in safe and effective techniques to prevent dangerous wildlifehuman encounters. Alyeska is permitted to haze animals that could be a threat to human safety.

Blank is one of the people who trains the bear guards that work on oilfield sites and with scientific field excursions. The daylong classes teach the bear guards how to read a bear’s body language and its usual habits. Guards also must pass a shooting test, and they must have a certificate allowing them to haze bears. Since polar bears are a protected species, that authorization comes from the US Fish and Wildlife Service. Grizzly bears are regulated by the state. “There are two different training criteria that are needed to be met,” Miyagashima says. Animal Activity Most bear activity occurs in the spring and fall. Blank says it’s difficult to tell if bear en-

A leading service provider to Alaska’s natural resource industry since 1976, Fairweather is uniquely equipped to support operations in the remotest of regions. Fairweather is committed to providing a comprehensive remote service package with a focus on safety.

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counters have gone up in recent years. But in general, bear encounters are relatively rare. “As the human footprint expands, statistics will have you coming across more bears,” Blank says. Miyagashima says they typically see more grizzlies than polar bears around facilities. The grizzlies seem to be more food-conditioned and less wary of human activities than polar bears. “They never go far away over the ice like the polar bears do, so they’re in the mix all the time,” Blank says. Wolves, caribou, and fox are also frequently seen on the North Slope. Bailey says Alyeska’s procedure is to leave them alone, even within a fenced area. They are monitored via security cameras. They will usually leave on their own, unless they find a food source. If they don’t leave, facility managers will contact Alaska wildlife personnel to discuss options. For foxes suspected of carrying rabies, security personnel follow Alaska Department of Fish and Game guidelines. “Taking the life of an animal is the measure of last resort, and only done in protection of human life or property,” Bailey says.

Training the Bears Once a bear is spotted, the first thing to do is remove the people from the equation, Miyagashima says. That may mean they have to stop work for an hour or even a full day. Then the guard must determine what to do next. Sometimes the bear is just passing through and can be left to go on its way. Sometimes, however, they need a little encouragement to move on. “You would start with noisemakers or even flashing lights—usually that kind of stuff is enough,” Blank says. “More often than not it’s enough to get the bear to leave. It just annoys them, especially if there’s no attractives out there. Visual cues. Sometimes you can get something big like a loader just kind of moving towards it, and it’ll scare the bear off.” If that’s not working, or the bear is really focused on coming at the guard, he or she can fire cracker rounds, beanbags, which usually work very well, he says. Generally, if a bear has been run off successfully, they will tend to try to avoid future human activity, Blank says. “Once the bear turns and it’s leaving, and it’s doing what you want it to do, you stop whatever your deterrent’s action is,” he says. “As soon as it’s doing what you want it do, you stop and then they’ve learned that lesson.” In a way, he says, bears can be trained. “They can be trained that if they come into camp they get a free meal,” Blank says. “Or they can be trained that if they go near the facility they get annoyed and yelled at and can be trained to stay away.”  R

Julie Stricker is a journalist living near Fairbanks.

Alaska Business Monthly | March 2017www.akbizmag.com


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OIL & GAS

Manufacturing Oilfield Modules Locally

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Alaska Business Monthly | March 2017www.akbizmag.com


Keeping busy in the downturn By Susan Harrington

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ssorted types of oilfield production modules are constantly being built in Alaska and shipped and installed to support existing facility expansion and new development. CH2M is one company keeping busy in the downturn by building, shipping, and installing truckable modules. Tucked away in an industrial section of Anchorage, CH2M’s fabrication plant manufactures modules for big players all over Alaska. They’ve been doing it for years, the count is more than

800 so far, and in February they were finishing up a blast resistant module (BRM) for one of the petroleum giants. Work starts this month on production modules for Greater Mooses Tooth 1 (GMT1) that will be shipped next year for installation northwest of Nuiqsut in the National Petroleum Reserve-Alaska.

Compact Office The five-module control room complex being manufactured in Anchorage for an existing facility will be trucked to the North Slope later this year, most likely by Carlile or STR Alaska, trucking firms CH2M uses that have specialized equipment to move the large and heavy modules. CH2M’s Anchorage Fabrication Facility Manager Mark Mobley says the BRM’s they’re

Welder at CH2M’s Anchorage Fabrication Facility working on large pipe. Photo courtesy of CH2M

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March 2017 | Alaska Business Monthly

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Shop floor at CH2M’s Anchorage Fabrication Facility. Photo courtesy of CH2M

doing are control room/office modules. The five-module complex will serve as an employee haven and, though large, Mobley says these modules are getting smaller and simpler. This one will go on an expanded gravel pad at a Prudhoe Bay separation facility on the North Slope and sit on pilings, seventy-five in all, though some will support the elevated walkway connecting the BRM to the rest of the facility. The BRM is meant “to provide a safe location for workers to perform non-operational tasks such as training, breaks, meetings, and management/administrative tasks,” per the permit application to fill about two acres of wetlands with about 15,000 cubic yards of clean gravel. Senior Proposal Manager Mary Jo Mrochinski says changes in the approach to safety are driving the manufacture of the BRM office complex. “Basically, they are having employees shelter in place in case of any kind of emergency—that is why they are shifting to that model design,” she says. “That design” is a self-contained building with an administrative support area, several private offices, a telecommunications and remote operations center with numerous large screens across the walls, individual computer stations, meeting rooms, kitchen, break room, first aid station, bathrooms, rooms to house the electrical panels and HVAC equipment, water and wastewater tanks, piping, wiring, emergency equipment, air handlers, heaters, and coolers. The modules are built 26

of steel and reinforced throughout to be blast resistant in case of a blowout or any other type of explosive event or emergency.

Specialized Boxes “Modules are essentially specialized boxes and building boxes is what we do here, right from structural all the way to making nice doorways and things like that,” Mrochinski says. “It’s a steel structure eighty-foot long, twenty-foot wide. There are steel beams inside, so you build a steel structure and put architectural elements in it. Then you put your electrical gear inside and piping and lighting,” Mobley says. The BRM modules they are working on are joined together outside in the yard at the fab shop in Anchorage, and when they send it to the North Slope, Mobley says, they’ll be taken apart to be trucked separately. And shrink-wrapped in plastic, Mrochinski adds. GMT1 Modules After progressing through the regulatory and permitting processes, ConocoPhillips Alaska announced in November 2015 that GMT1 had been approved for final funding—about $900 million as the approximate cost to develop. Construction begins this year and runs through 2018; first oil is planned late in 2018 for this Alpine satellite, estimated to peak at 30,000 barrels per day. The permit includes a 7.7-mile road, pipelines connecting to CD5, and an 11.8-acre gravel pad for the drill rig, wellheads, piperacks, a well

house, transformer platforms with insulated fuel tanks, an ENVIROVAC, and, of course, modules. CH2M is building nine modules at the Anchorage fabrication shop, one for every type of activity that will need to be done, Mobley says. The list: pigging module, fuel gas conditioning module, production heater, test separator module, emergency shut down module, remote electrical and instrumentation module, switchgear-utility room module/transformer, chemical injection module, and chemical storage (Type C flammable, corrosive liquid). Planned start date: March 4. The CH2M crew at the fab shop will work five tens (five days per week and ten hours per day) and be done this November with a peak workforce of seventy people. They began preplanning in late January, and that takes about a month during which time they have Alaska Steel deliver the steel (about forty tons per module), work on shop drawings, communicate back and forth with the client, and otherwise get geared up, including hiring more people—often previous or past employees. “We’ve got a pretty serious employee database from folks we hire and rehire as work ebbs and flows; that’s pretty typical of most construction up here. Particularly because these are the guys who have experience with this kind of construction and those are the employees you want,” Mrochinski says. Mobley says the GMT1 modules are a carbon copy of some modules CH2M built two years ago, except for a couple of new modules

Alaska Business Monthly | March 2017www.akbizmag.com


Moving the Modules As the modules are fabricated they are moved into the yard for interior finishing. Even though completion is slated for November, there are a few weeks of cushion built into the schedule for finalization while waiting for ice road construction before shipping them to the site and installing. Next February the modules will be on their way to the Arctic, leaving the CH2M yard early one morning. “It’s something that

www.akbizmag.com

Photo courtesy of CH2M

that weren’t included in the previous project. “Pretty standard,” he says, adding, “We’ve already done it once, we know the ins and outs and lessons learned.” “Mostly lessons learned tend to be once you’ve done the project everybody gets together and talks about how it went,” Mrochinski says. “Where things would be made easier; the design standpoint, to the actual transmission of how we get it through the shop, and how we actually finish it and send it out. Where can we show efficiencies, where can we do things better? It’s a supervaluable tool that we use all the time to get us set up for when the next project comes in. We know certain things are done a certain way, these kinds of project types, and how we can make it easier for them.” “This team of engineers and constructor/ fabricators is one of the best in the world,” says CH2M Vice President of Construction Craig Crawford. “They are safe and efficient, and take tremendous pride in doing excellent work.”

View of large stainless steel pipe fabrication for Point Thomson at CH2M’s Anchorage Fabrication Facility.

we load in the evening so the next day it’s ready to leave town—and not on a Monday,” Mobley says. “It’s quite an ordeal. It takes a whole fleet of trucks to go with it [on the Haul Road]. You’ll have trucks pushing it up the hill, and then they’ll swing up front and

help brake and they bump each other going downhill. So, typically, three trucks, one driving and two push trucks. Great trucks.” And the trailer? “Well, it’s a special trailer,” Mobley says. “Like a low-boy trailer you see that they haul a dozer on, except it’s

March 2017 | Alaska Business Monthly

27


Production module shrink-wrapped in plastic and preparing to load out for shipment to the North Slope at CH2M’s Anchorage Fabrication Facility. Photo courtesy of CH2M

about 120 feet long—it’s made for up to ten modules. Different trailers can hold different modules, all different loads.”

EPC is Next While CH2M is excited and enthusiastic about ramping up operations at the Anchorage Fabrication Facility, they are finding more work of a different nature. Lately, that’s been in the form of consultative work—in an advisory role— looking at preliminary approaches. Mrochinski says that includes letting clients know what they can do physically as well as everything else to develop their leases. Telling them what can be built where, and if they’re looking at a certain number of well developments then letting them know how many modules they might need to

support that. “From there, that at least gives them their basis for design and they understand what they’re looking for when they go out and hire an engineering firm to do the design work,” Mrochinski says. And even that is changing. She says now a lot of oil companies are looking at an “Engineering Procurement Construction [EPC] model, which has been very effective in the Lower 48. EPC is just another way of saying Design Build: it’s engineering and the throw-in there is procurement and then construction. And because CH2M has all three of those under one roof, a lot of times we do get sort of an initial pass through, and they say, ‘Hey, if we want to do this as an EPC team job, what do you think about it?’” While the BRMs and some stainless steel

pipe spools have kept CH2M’s fab shop open with a skeleton crew, and GMT1 modules have enabled them to rehire some workers at their Anchorage Fabrication Facility, other fab shops dot Anchorage, Big Lake, Fairbanks, and on the Kenai that are eager for more work as well. There used to be plenty of projects to keep them all busy. Mrochinski shares that most of the industry feedback they’ve gotten from companies in oil and gas exploration and development is that “everybody is looking to the Legislature to offer up some fiscal certainty. They’re asking ‘What’s our stability in terms of moving forward on tax credits for development?’ They are hesitant to invest until they know what the regulatory climate is.”  R

CH2M is the only firm in Alaska to have built every type of truckable module » » » » »

Blast-resistant Control Rooms (BRMs) Remote Electrical and Instrumentation (REIMs) Fuel Gas Conditioning Chemical Injection Emergency Shutdown (ESDs)

» » »

Production Separators Test Separators Pigging – Launchers and Receivers Metering Switchgear Generator

PR0119171106ANV

Building modules for the North Slope is just one thing we excel in – we are the team that delivers engineering, fabrication, maintenance, and construction. If you are looking for the experts in Alaska, look no further than CH2M Alaska.

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» » »

www.ch2m.com | alaska@ch2m.com

Alaska Business Monthly | March 2017www.akbizmag.com


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FINANCIAL SERVICES

Microfinance Potential in Alaska

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By Anneliese Trainer

he term “microfinance” likely elicits images of developing countries and $100 loans, but recent innovations and adaptations to the practice have brought microfinance products and services to the United States, with interesting results in the 49th State in particular. While microfinance in the developing world offers small loans to the poorest of the poor, American microfinance institutions generally provide business loans under $100,000 to those unable to secure financing from commercial banking entities. This may be due to poor/no credit history or the need for a small amount of capital, below typical lending thresholds. Microfinance programs tend to use more lenient criteria when evaluating potential borrowers than traditional financial institutions and usually offer more technical support services than commercial lenders.

Great Potential Although microfinance efforts are still relatively nascent in the 49th State, the potential is certainly here, and interest in microfinance has been growing among various organizations. A majority of the state’s microfinance activity has occurred through a unique platform called Kiva Zip. Kiva Zip is an arm of Kiva, an international microfinance nonprofit. Geared specifically toward borrowers in the United States, it provides an online crowdfunding platform for individuals to make loans directly to borrowers. Kiva Zip representative Adam Kirk explains that “Kiva’s unique crowd-funded financing is different from that of traditional financial institutions in that Kiva vets business owners on the basis of their character and not on their business data. Entrepreneurs are required to recruit a number of people from their own network before they’re able to raise money on Kiva.” Instead of credit score, net worth, or years in business, community involvement is the main metric Kiva Zip uses to assess borrower credibility and trustworthiness. Kirk states, “In Alaska, Kiva has connected twelve entrepreneurs with $75,400 in funding for their businesses, all without charging a single cent of interest or fees. These twelve business owners include people like Jenny, owner of Sipping Streams Tea Company in Fairbanks, who borrowed $10,000 to expand her wholesale capacity and grow retail revenue.” Zero Interest Loans Fairbanks Economic Development Corporation Tech-Led Development & Cold Weather Testing Project Manager Juliet Shepherd says she “would like to make a clear call to action for Alaska small businesses to consider utilizing Kiva’s 0 percent interest loan option to build cash reserves to ensure positive cash flow, while establishing or building a credit history. These crowdfunded loans can be used for any 30

legitimate business need—including operations. It is a way for small businesses that are financially excluded from conventional lending options or are creating social impact in their communities to increase resilience while directly infusing capital into Alaska’s economy.” Shepherd points out that “the Kiva program works best with businesses with strong community ties—either directly or through established social networks.” To find out more about how Kiva supports US entrepreneurs, visit borrow.kiva.org or email borrowers@kiva.org. Kiva Zip is a viable option for rural entrepreneurs who may have difficulty accessing traditional banking based on their remote location. Michelle Sparck, co-founder of the sister-run, Alaska Native cosmetics company ArXotica, has run two successful Kiva Zip campaigns and shared her insights into the Kiva experience. When asked if using the Kiva Zip program was preferable to traditional banking, Sparck responded: “So much better… These aren’t astronomical and game changing amounts, but it does provide a little breathing room and autonomy while a small start-up considers the next move. A no interest loan is rare and beneficial. Many of [Kiva’s] businesses have infrastructural inequities and challenging supply chains, Alaska isn’t so unique with that, but to have this kind of capital with the barriers we face in simply getting to the marketplace is invaluable. Traditional banks would look at all these challenges and determine it too risky; Kiva is not traditional.”

Pilot Program The Anchorage Community Land Trust (ACLT) also recently piloted a microfinance program to address gaps in business lending in the Mountain View neighborhood. ACLT Communications and Development Manager Emily Cohn shares that the goal of the program is to “offer business owners an alternative lending product that will gain them access to small, usable amounts of capital for business growth. Many small business owners resort to credit cards, pay-day advance loans, family/friend loans, and other high-risk, high cost funding options in the absence of financial mechanisms that meet the needs of their small business.” The pilot program currently seeks to serve established business owners in the Mountain View neighborhood. Cohn says, “ACLT has strong anecdotal evidence that the microloan program is needed. Small business owners, in this case minority and women-owned, have indicated that a program where they can safely acquire funds to purchase a piece of equipment to expand their food service business would be a huge assistance. The program would allow them to grow profits without having to subject their personal finances, which support their families, to the risk and high interest rates that credit cards or other options provide.” The first microloan dispensed by ACLT went to Eva’s CupCakery, a Mountain View bakery and neighborhood institution. With the small loan from ACLT, the

business was able to purchase espresso equipment and expand the shop’s offerings.

Other Microloans Entrepreneurs interested in business loans for small amounts of capital can also consider the Microloan Program available through the Alaska State Division of Commerce, Community and Economic Development. The Microloan Program lends up to $35,000 to an individual and up to $70,000 to two or more persons. While exciting developments are being made in regards to microfinance institutions throughout Alaska, there is certainly room for more lenders in the state. There are several resources available to organizations interested in taking on a microlending component. The Small Business Administration supports intermediary microfinance lenders through a program that provides grant funding and loan money to eligible nonprofits that offer microloans and technical assistance for small business owners. There are, at this time, no microloan intermediary lenders in the state of Alaska. The USDA Rural Development Office’s Rural Microentrepreneur Assistance Program (RMAP) is another Federal Program in Alaska that can assist with microfinance. “Through the RMAP, USDA partners with local Microenterprise Development Organizations who in turn invest in viable, small rural businesses that are otherwise unable to obtain the credit they need to succeed,” says Renee Johnson, business programs director at USDA Rural Development. “This program is underutilized in Alaska,” says Johnson. Under RMAP, USDA provides loans and grants to microenterprise development organizations to help microentrepreneurs access small microloans to start or develop businesses. Microenterprise development organizations use the funds to provide training and technical assistance to eligible small businesses or to establish revolving loan funds to provide loans (typically ranging from $5,000 to $50,000) to rural microentrepreneurs. For more information and how to apply, please contact Johnson at: (907) 761-7712 or renee.johnson@ak.usda.gov. At the heart of these different microfinance programs is a desire to spur community and economic development. Access to small loans and intensive technical assistance paves the way for small business owners to use small amounts of capital to its greatest potential, grow their operations, and contribute to a robust entrepreneurial ecosystem. R

Anneliese Trainer recently ended a yearlong AmeriCorps VISTA placement at the University of Alaska’s Center for Economic Development in a three-year Microfinance Initiative project. Contact UA CED for more information.

Alaska Business Monthly | March 2017www.akbizmag.com


HR Matters

By Kevin M. Dee

Maintaining Motivation, Employee Engagement, and Productivity Thein Process of Transition - Economy John Fisher, 2012 a (Fisher’s Downturn Personal Transition Curve) The Process of Transition DENIAL

At last something’s going to change

What impact will this have? How will it affect me?

Can I cope?

I’m off!! ....this isn’t for me!

This is bigger than I thought!

I can see myself in the future

MOVING FORWARD

Did I really do that? At self

GE

AN HAPPINESS

This can work and be good

DISILLUSIONMENT

At others

ANXIETY

Change? What Change?

Who am I?

R

GRADUAL ACCEPTANCE

COMPLACENCY

I’ll make this work if it kills me!!

FEAR COMPLACENCY

THREAT

GUILT

DEPRESSION

HOSTILITY

© J M Fisher 1999/2012. Free for personal and organizational development use. Not to be sold or copied for general publication. A free resource from www.businessballs.com with permission of John M Fisher. See the theory and explanation at www.businessballs.com/personalchangeprocess.htm

Work culture is crucial to positive approach and attitude

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ith an economy under duress in Alaska, many companies are struggling to keep their workforces engaged and motivated. Economic pressures are requiring organizations to run leaner than they ever have before. Downsizing (oops, I meant right-sizing) is occurring all around us. This often means salary freezes and benefits either being reduced or benefit costs shifted more onto employees. Others are pushed to reduce their workforces, resulting in more work put on the shoulders of those left behind. Often a “do or die” and survivor mode mentality sets in. Employee engagement goes down in a depressed economy. Many of the polls on workplace satisfaction and engagement have shown that employee engagement and satisfaction are joined at the hip and directly re32

lated to personal productivity and success. So how do you put on your happy face and stay engaged and motivated? Well, there are actions you and your company can take to make a difference in enhancing and maintaining engagement and motivation—even in downturn. The Gallup organization has been studying employee engagement and productivity for a long time and has surveyed 25 million workers regarding engagement and productivity. They have twelve statements they use to query workplaces on engagement, with workers answering yes or no to each.

Elements of Great Managing To identify the elements of worker engagement, Gallup conducted many thousands of interviews in all kinds of organizations, at all levels, in most industries, and in many countries. These twelve statements—the Gallup Q12—emerged from Gallup’s pioneering research as those that best predict employee and workgroup performance. 1. I know what is expected of me at work.

2. I have the materials and equipment I need to do my work right. 3. At work, I have the opportunity to do what I do best every day. 4. In the last seven days, I have received recognition or praise for doing good work. 5. My supervisor, or someone at work, seems to care about me as a person. 6. There is someone at work who encourages my development. 7. At work, my opinions seem to count. 8. The mission or purpose of my company makes me feel my job is important. 9. My associates or fellow employees are committed to doing quality work. 10. I have a best friend at work. 11. In the last six months, someone at work has talked to me about my progress. 12. This last year, I have had opportunities at work to learn and grow. © 1992-1999 The Gallup Organization, Princeton, NJ. All rights reserved.

When you look at these statements, they seem, at face value, obvious to everyone. When you ask a group to discuss these from a per-

Alaska Business Monthly | March 2017www.akbizmag.com


sonal rating point of view, meaningful discussion ensues. When you look at them all and ask how much will it cost the company to implement each one so every employee can emphatically say yes to every one, the answer is little or nothing! The cost is having managers who understand their role is to serve the people they supervise so they can be at their most productive. They can be most productive by being fully engaged. To be fully engaged they need to be connected into a workplace that values and cares about them and supports their success and protects them from people who are not playing by the rules.

Work Culture Is Crucial Do your teams like and respect each other? Do your employees know each other more than their job functions? Does everyone have a best friend at work or belong to a healthy social group? Knowing who you are working with personally and what’s important to them is a foundational piece that goes along with engagement. Sometimes the “we are all in this together” mentality can be a touchpoint to bring employees together to work closer and realize the benefits of teamwork and positive engagement. This can happen in a tight working group. Supervisors play the largest role in creating these connections between employees that can bring everyone closer and raise the commitment level. On the other hand, some groups will come together to complain and whine about how it’s harder and how bad they have it. Again, front line supervisors set the tone by what they do or don’t do for the group on whether it is complaining or uniting to get things done despite adversity. Know What You Are Facing Is your workplace nimble and adapting quickly to change or are you more like a deer caught in the headlights, stunned and paralyzed wondering what’s going on? Or maybe you are as slow as a sloth? Understanding your adaptability and how change affects people and teams is critical information. Any change in a workplace, especially in a downturn, is a loss not unlike a death in the family. When people leave or salary increases are frozen or benefits reduced, we grieve. We miss the expected and our projection of what would happen into the future. When this occurs in the workplace, all the same states of grief can manifest themselves in workplace interactions. “The Process of Transition” illustrates what occurs during organizational change. Groups need a place to talk about what is happening to them and positive support to deal with the changes. An empathetic HR department or supervisor goes a long way in supporting whatever changes you are confronted with. Without support some groups will get stuck in grieving behaviors and spiral down into all kinds of dysfunction and depression. Recognizing that change and the management of change are paramount to your organization is the best remedy. If you do not address change head on, you will likely end up with a workforce of Eeyores who are unproductive in your business. www.akbizmag.com

Many Hands Make Light Work Connecting work teams across different areas to find efficiencies and define performance expectations is a best practice in high performance teams. It is an essential practice in resource restricted teams. Focusing on what’s really important and getting things done in a “work hard, play hard” work environment will go a long way. This means that there has to be trust, commitment, and accountability in order to get commitment and results. Groups have to come together to talk about systems and workflows and hammer out who owns what. I often facilitate groups, and when we are discussing to do’s or action items we ask: “Who owns this monkey?” Every action item, problem, or incomplete becomes a monkey that needs to be owned and accountable to a person. Monkey tamers then must move their monkeys forward regardless of the obstacles they face until they are either tamed or accomplished. People start to talk to one another in order to make progress with their monkeys. Engagement increases and even a sense of fun can occur. “How’s your monkeys?” became a common greeting at one company. When a team comes together in connected workgroups and a problem is resolved or a task is accomplished, they celebrate the success of it. They also will help out any member who is having trouble managing their monkeys. It is that connection and caring and belief in practice that if one of us fails we all fail, and if one of us wins we all celebrate. Attitude and Approach Finally, approaching change in businesses in a downturned economy requires an attitude of positivity. It’s all in your attitude and approach. You can complain and pretend you have a better choice or you can smile and be thankful for the opportunity to work with others who are doing the best they can to keep their heads above water too. Groups that come together because of the hard times remember their efforts to fight the good fight. They don’t complain, they roll up their sleeves and get the job done. Our best work is when we face adversity. We come together to support one another through tough times and each other in connected meaningful ways. We are better for the common experience of it. When we temper our resolve and commitment, we are capable of great things no matter the challenge.  R Kevin M. Dee has a master’s degree from Vanderbilt University and is the president of KMD Services & Consulting. He has been providing organizational development services, human resources consulting, and leadership development since 1984 in Alaska and internationally. Contact him at mail@kmdconsulting.biz.

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March 2017 | Alaska Business Monthly

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CONSULTANT’S CORNER

Insuring Your Future Exit

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By Mel B. Bannon

usiness owners are risk-takers by nature. Interestingly, these same owners are often-times risk averse. What this means is that owners will assume risks in one area of their lives but not necessarily work to mitigate risks in other areas. The primary issue in not mitigating risks lies in the fact that, as a business owner, there are a lot of people in your world who rely on you and the decisions that you make. This article challenges the use of insurance in the singular manner of addressing a loss of life. In fact, insurance products are useful tools throughout the spectrum of advanced planning for a future exit. My intention is to discuss risk mitigation and broaden owners’ views on how and where insurance can ground and solidify your plans for a future exit (while you are still alive).

An Aleatory Business Contract Insurance policies are known as aleatory contracts. An aleatory contract is defined as “an agreement concerned with an uncertain event that provides for unequal transfer of value between the parties. Insurance policies are aleatory contracts because an insured can pay premiums for many years without sustaining a covered loss. Conversely, insureds sometimes pay relatively small premiums for a short period and then receive coverage for a substantial loss.” So the financial industry provides a marketplace to understand your business risks and allow you an opportunity to share those risks with another institution. In a limited sense it is a forecast of the future—in the case of insuring the loss of life. If the event/death that you are insuring occurs, you “win” and the insurance company pays. If the event does not occur, you don’t necessarily lose because you have some peace of mind. Insurance as an Asset Class Insuring for the loss of life is only a small part of utilizing insurance in an exit plan. However, many business owners fail to see the benefits of certain other forms of insurance. Insurance can serve as an asset class and a tool to harvest savings, share benefits, and leave assets on your company balance sheet, as well as sharing an asset with key people to more easily retain them at your company. Most business owners, when thinking about planning for their exit, fail to see insurance as a tool for many facets of a transition plan. Insurance as an Accumulation Asset for a Future Exit Some typical goals of business owners who are thinking about a future exit include: 34

 Having enough retirement income to sustain your lifestyle  Retaining key people and aligning incentives to grow the business  Having a tax efficient transfer of wealth as the business changes hands  Avoiding complex tax code provisions inside of your key person incentive plan  Providing a path for key people to potentially purchase the business interests from you, the owner  Having access to cash that is needed to run and grow the business Insurance contracts can serve as a “funding solution” for the issues listed above. The primary goal here is not to provide complex details of how this can work but rather to help to re-conceptualize the role that insurance can play in your future plans. Remember that insurance is a unique asset in many respects, not the least of which is the ability to harvest tax benefits, provide disciplined savings with your planning, and to customize an agreement that retains your key people.

Solving or Not Solving for Death As mentioned, business owners too often view the purchase of insurance only as a vehicle to deliver needed cash in the event of a death. The use of funds is often to replace business income or to fund family needs and/ or estate taxes. Many business owners hold contracts that are set to address these contingencies. However, there is another way to look at insurance: as a tax-efficient, forced savings plan for you, your company, and your key people. In this case, the purpose of insurance is not necessarily to anticipate a death and for cash to be provided at the time of death. Rather, this form of insurance is for cash accumulation, either within the company or held outside of the business. And under current tax laws, this savings is accomplished on a tax-advantaged basis, similar to a Roth IRA, but without the earned income limits affecting Roth IRAs. Overcoming Immortality One of the reasons that insurance is looked down upon as an effective tool for exit planning is because many owners have survived against insurmountable odds to grow their business. Also, there is the uncomfortable issue of dealing with death. However, when insurance is viewed in more broad terms as a

tool to accomplish many goals while you continue to grow your business and make plans for a future exit, the options and alternative uses begin to grow.

Concluding Thoughts For better or for worse, it is often said that insurance is something that is sold, not purchased. In other words, the use of insurance in an exit plan has historically required a sales process in which a purchaser of insurance needs to see a vision of what could happen to their lives without insurance. Business owners should learn about and utilize certain forms of insurance, understanding that insurance is something that is “purchased” for the benefit of you and your company and not something that needs to be “sold.” Take Action Today Call your insurance advisor and request a review of your existing policies for your business and your personal lines. Seek to learn about the different ways that insurance can serve as a catalyst and disciplined approach to advancing your plans for a future exit. You worked a lifetime to build what you have. Just as you were responsible for the success of your enterprise, you are equally responsible for seeing its succession and/or transfer, including your exit. Be sure to remember to insure your future exit. In doing so, you will advance further towards the peace of mind that comes as a result of proper planning. R

Mel B. Bannon, CLU, ChFC, RFC is a registered representative of Lincoln Financial Advisors, a broker/ dealer, member SIPC, and offers investment advisory service through Sagemark Consulting, a division of Lincoln Financial Advisors Corp., a registered investment advisor, 31111 Agoura Rd., Ste. 200, Westlake Village, CA 91361 (818) 540-6967 or (907) 522-1194 . Insurance offered through Lincoln affiliates and other fine companies. This information should not be construed as legal or tax advice. You may want to consult a tax advisor regarding this information as it relates to your personal circumstances. Exit Planning offered through unaffiliated third parties. AK Insurance License #19665 CRN1613480-100716.

Alaska Business Monthly | March 2017www.akbizmag.com


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I you are not an Alaska resident, you should compare this plan with any 529 college savings plan offered by your home state or your beneficiary's If home state and consider, before investing, any state tax or other benefits that are only available for investments in the home state’s plan. You can also visit our website or call the phone number to request a Plan Disclosure Document, which includes investment objectives, risks, fees, charges and expenses, and other information. You should read the Plan Disclosure Document carefully before investing. Offered by the Education Trust of Alaska. T. Rowe Price Associates, Inc., Investment Advisor/Program Manager. T. Rowe Price Investment Services, Inc., Distributor/Underwriter. 12/16 2016-US-22555


INSURANCE

Commercial Insurance Essential for Business Survival Businesses need to consider their ‘appetite for risk’ By Tracy Barbour

C

ommercial insurance helps businesses transfer certain known and unknown hazards to a third party, making it an essential tool for risk management. Alaska’s insurance experts say companies need to purchase the right type and level of insurance—and review their coverage regularly— to adequately protect their business. Every business activity creates some sort of risk—even something as innocuous as sending an employee to the store for staples. Of course, not all risks—particularly acts of God—are insurable. And most businesses insure only about 20 percent of their risk, according to Christopher Pobieglo, CIC, CRIS, president of Business Insurance Associates Inc. “You’re going to insure the most common risk exposures,” says Pobieglo, who has been in the insurance business for more than twenty years.

“Certainly purchasing insurance is an important piece of managing your risk, but it shouldn’t be the totality of it.”

—Christopher Pobieglo CIC, CRIS, President Business Insurance Associates Inc.

Getting insurance coverage is the only risk measure that some business owners take, but that’s not a substitute for managing risk, Pobieglo says. “Certainly purchasing insurance is an important piece of managing your risk, but it shouldn’t be the totality of it,” he says.

Types of Insurance There is a plethora of insurance products available to help companies cover the risks they may encounter during the course of doing business. Some of the most basic types are compulsory, such as state-mandated workers’ compensation for employers and commercial auto insurance. Incidentally, 36

“The biggest theft of people’s identity involves medical information.”

—Mike Dennis Vice President, Conrad-Houston Insurance

even businesses without a commercial fleet can benefit from hired and non-ownership auto liability insurance. Also, financial institutions commonly require borrowers to carry insurance coverage to protect financed property. Another common contractual requirement is general liability insurance, which protects business owners against claims of liability for bodily injury, property damage, and personal and advertising injury. Another option is excess liability insurance to cover losses that surpass the general liability policy’s dollar limit. Similarly, an umbrella policy can also provide liability coverage for exposures not covered under the primary general liability insurance policies. There’s also more specialized insurance to fit the unique exposures of certain businesses, professions, and situations. Key examples include medical malpractice insurance for physicians, tenant discrimination liability coverage for property owners, pollution liability coverage, builder’s risk coverage, crime insurance, directors’ and officers’ insurance, and professional liability/errors and omissions insurance. Professional liability/errors and omissions insurance is commonly purchased by engineers and architects. However, Pobieglo says, many consultants tend not to carry this kind of insurance—even though they have the potential to make inadvertent errors and omissions when assisting clients. But neglecting to obtain this type of coverage can be an oversight on their part. “Any time you are offering advice or consultation, there is a risk that person could act on that advice and be harmed,” he explains. In more recent years, cyber liability has become a buzz word in the insurance industry, according to Mike Dennis, vice president of Conrad-Houston Insurance. And there’s no wonder why, given that it’s such a major exposure for many companies. Today, most businesses have an online presence and/or

store electronic information on their customers. Dentists, in particular, purchase cyber liability insurance to protect their customers against potential data breaches. “The exposure is there; they have a treasure trove of medical information on clients,” Dennis says. “The biggest theft of people’s identity involves medical information.” Like Dennis, Lynne Seville, CSP, is also seeing an expanding interest in cyber liability and pollution liability insurance, as well as professional liability insurance for construction companies. Seville, a principal and account executive at Parker, Smith & Feek Inc., has also noticed that more entities are buying key person insurance and even using insurance mechanisms to help fund their business continuity and transition plans.

Choosing the Right Coverage Companies have a myriad of exposures, and it’s essential for them to obtain the right kind of coverage to protect their business. “It’s critically important because their business is on the line,” says Mike Gordon, president of Denali Alaskan Insurance. For example, building contractors tend to have property, premises liability, contractual liability, inland marine (equipment), and automobile exposures, along with auto liability and workers’ compensation. The minimum recommended coverage for construction contractors includes building personal property, employee dishonesty, builder’s risk, general liability, employee benefits liability, umbrella liability, automobile liability, and physical damage. While different industries share many of the same risks, some have their own unique exposures. Restaurants, for instance, have property exposures from substantial cooking, electrical wiring, and refrigeration units. Other risks include equipment breakdown, liquor liability, and products liability due to food poisoning and allergic reactions. Hospitals also have extensive property and equipment breakdown exposures, along with environmental impairment exposure due to the potential of improper medical waste disposal. Regardless of its type, insurance essentially reassigns risk for a known quantity. But just how much insurance coverage does a business really need to carry? The answer, in part, is in the “eye of the beholder,” Seville says. Organizations need to consider their risk appetite and if they can survive in the event of a loss. That’s what should inform their insurance buying, Seville says. They should go through the calculated process of contemplating the possible claims that could result, the probability of the claims, and other important factors. “Without that process, it’s just a guessing game,” she says.

Alaska Business Monthly | March 2017www.akbizmag.com


“I think it’s human nature to not want to think about the risk. But you need to put some science to it. Put a process to it and think about it.”

“AT&T is committed to advancing

education, strengthening communities and improving lives. By supporting United Way’s innovative efforts to ensure that homeless and at risk students graduate on time, AT&T is investing in youth who need it most.”

—Lynne Seville, CSP Principal and Account Executive Parker, Smith & Feek Inc.

The best thing clients can do is to educate themselves on the available insurance products and make sure they understand their risk. “I think it’s human nature to not want to think about the risk,” she says. “But you need to put some science to it. Put a process to it and think about it.” That process should be a collaborative one between clients and their insurance professional. “We look at loss and assign risk with numbers,” Seville explains. “You can look at everything from your own financial records to other similar entities and the kinds of losses they suffer. It helps to put numbers to it; otherwise, it’s a gut feeling.” As a broker, Gordon also strives to educate clients on the different coverages and exposures. Normally, he gives clients a quote or at least an indication of the approximate cost of the coverage being considered. Then they can discuss the details and make an informed decision. It’s often more advantageous for businesses to work with a single, trusted broker who can go out into the market and bring back multiple quotes. “As a broker, we do the shopping and leverage the carriers to get the price down to where we want them to be,” Gordon says. For Pobieglo, helping clients determine the proper amount of coverage typically involves having them consider the worst-case scenario. Expense, of course, is also a key factor. “It goes back to trying to balance cost versus coverage and finding a happy spot as well as you can,” he says. Businesses should ensure they understand the basis of their premiums, which can fluctuate according to their situation. For example, workers’ compensation insurance coverage is based on the company’s estimated payrolls for the upcoming policy period. Pobieglo recommends that companies track their business activity and have their broker make costs adjustments along the way. “That keeps you from getting those unexpected audits,” he says. Audits are designed to ensure that employers are paying for their actual exposure. When an audit is done at the end of the policy period, differences between the estimated and actual information can result in the client www.akbizmag.com

Shawn Uschmann

Director, External Affairs AT&T Alaska

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paying an additional premium or receiving a premium refund. And the payroll on the current policy could be adjusted to reflect the updated information. Insurance brokers, Pobieglo says, should partner with business owners to determine what types of risks they face and what reasonable coverage levels are necessary. For example, he advises clients to choose the maximum for general/auto liability coverage, which is usually $1 million. “Cutting limits is not a savvy cost-cutting strategy,” he says. However, people should not purchase insurance simply based on what someone else says they need, what is legally-mandated, or contractual requirements. “It should be based on the risk your business is facing,” Pobieglo says. David Adams, CIC, a senior account executive with Insurance Brokers of Alaska, agrees. While legal and contractual obligations are important considerations, he says, business owners should think more broadly. They should consider how much risk they want to assume and what could put them out of business. There are many factors to be considered when determining the right type and amount of coverage, Adams says. In many cases, there are regulatory requirements that set minimum acceptable insurance coverage limits. That’s why he recommends that businesses develop a strong working relationship with insurance professionals and rely on their expertise. “Use the services of a qualified risk management professional to provide an in-depth analysis of your exposures and risk,” Adams says.

Maintaining Adequate Protection So how often should companies review their insurance coverage to ensure they are adequately protected? Although risk management should be a daily activity, business owners should review their coverage and risk with their broker at least once a year, Pobieglo says. “Here in Alaska, we like to review a couple of times, usually seasonally: once in the spring and once in the fall,” he says. Taking a seasonal approach, Pobieglo says, allows companies to adjust coverage for the ebbs and flows of their business activities. For instance, the business may need to boost coverage when adding new equipment in

Alaska Business Monthly | March 2017www.akbizmag.com


the spring and lower coverage when payroll winds down in the fall. Seville also recommends that business owners review their coverage at least annually and upon any new undertaking. Preferably, they will advise their insurance broker about any new undertakings—before they happen. “It’s very important to get your insurance broker involved early,” she says. “There are specialized coverages, and there is a lead time. And it takes a while to get good quotes.” Discussing impending developments is especially important when the undertaking involves acquiring another business, Seville says. And if the client is dealing with nondisclosure or confidentiality agreements, their broker can also sign these agreements and be able to provide advice as early as possible in the process. Gordon feels that companies should always be reviewing their coverage and thinking about how the decisions they are making will impact their insurance needs. “Being proactive, not reactive, is the key,” he says. Adams also favors being preemptive, saying business owners should consult with their insurance professional at least once a year and prior to making any organizational changes. “Allow your insurance professional to be a strategic part of your organization,” he says. “Your professional should be a go-to resource person.” Like most brokers, Dennis also advocates an annual assessment as a bare minimum. Or a quarterly review might be warranted, depending on the size and activities of the business. He says: “How much are they growing?

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Are they acquiring assets often? If it’s a new and growing business that’s expanding rapidly, you might want to do it monthly.” The review would involve evaluating the company’s assets, exposures, and risk tolerance and then determining the available coverage and costs. “A lot of time we provide several options and then talk about what they can afford versus what they need to cover their assets,” Dennis says. But businesses can’t insure for every loss, or they’ll end up “insurance-poor,” Dennis says. “You have to balance the insurance cost versus your exposure,” he explains.

Expert Advice As a word of advice, Dennis emphasizes that insurance is an indispensable asset for business survival. “It’s a necessary evil,” he says. “You can use it to have peace of mind and as a tool to grow the business.” But the value of insurance coverage, Dennis says, is sometimes underestimated. “It’s a tool you use to keep your business working and going, so you can borrow money, hire employees, and spread the risk of losing a business in the event of a small accident,” he says. “You don’t want to leave your business exposed to a catastrophic event like a fire when you could have spent a few thousands to insure it and protect it.” Business owners also sometimes undervalue the benefit of using a local broker with knowledge of the marketplace in Alaska, Dennis says. Alaska is a unique insurance

market, and there are some risks and exposures that happen here that don’t’ happen anywhere else. “Your local broker has the knowledge to help you maintain a profitable business through hard work in getting you in the proper markets,” he says. Seville concurs. Her strongest piece of advice is: “Find a really good local partner that approaches commercial insurance in a risk management way in terms of understanding your risk and your business.” Adams encourages business owners to develop a strong relationship with a qualified insurance professional. “Invite them to become a part of your advisory/management council,” he says. He adds that businesses should also take ownership in managing risk. “The time you invest today will save you time and money in the future,” Adams says. Gordon is a stanch advocate of businesses having a strong safety culture. Employees should be looking out for clients and customers to prevent accidents, he says. This can save companies thousands of dollars in workers’ compensation and general liability claims. He advises clients to review their worker’s comp and auto insurance loss runs at least yearly. Then they can make strategic adjustments to reduce their losses. “It’s good to be informed,” Gordon says.  R Freelance writer Tracy Barbour is a former Alaskan.

March 2017 | Alaska Business Monthly

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HEALTH & WELLNESS

Alaska’s Mental and Behavioral Health Providers Photo courtesy of Providence Health & Services Alaska

The main reception area for Providence Medical Group Behavioral Health, located at 3760 Piper Street in Anchorage.

Promoting Wellness for Consumers of All Ages By Tracy Barbour

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ental illnesses have a major impact on individuals and society as a whole. The annual direct and indirect economic cost of mental illness in the United States is estimated to be in the hundreds of billions of dollars. Mental illness lowers individuals’ productivity and income; raises healthcare costs for other illnesses; and increases addiction, homelessness, and disability rates. Fortunately, many forms of mental illness are treatable, and Alaskans can find help through any of the mental health and behavioral health (relating to substance abuse and other addictions) providers and facilitators covered in this article.

Providence Health & Services Alaska Providence Health & Services Alaska, Behavioral Health offers numerous outpatient and inpatient mental health services for children, adolescents, and adults. “That continuum allows patients to feel very cared for because they know there is something for them on 40

either side [inpatient as well as outpatient],” says Renee Rafferty, MS, LPC, director of behavioral health services. Providence’s vast service lines use a trauma-informed approach that focuses on how emotional forces impact behavior. Providence specializes in treating trauma through its adolescent inpatient and residential programs. The Providence Adolescent Residential Treatment Program, for instance, provides longterm psychiatric treatment for twelve to eighteen year old girls in Anchorage and Palmer. Program participants receive group and individual care as well as treatment for their entire family. “The program allows them to heal from complex trauma,” Rafferty says. “It’s pretty amazing.” There are also mental health services available through inpatient programs within Providence Alaska Medical Center in Anchorage. For example, the Discovery Unit-Adolescent Inpatient Mental Health program is an acute program for thirteen- to eighteen-year-olds who need intensive crisis intervention, stabilization, and behavioral health treatment. The unit provides a safe and therapeutic environment for adolescents experiencing a crisis. Providence also has a crisis intervention program that provides twenty-four-hour care,

“That continuum allows patients to feel very cared for because they know there is something for them on either side [inpatient as well as outpatient].”

—Renee Rafferty, MS, LPC Director of Behavioral Health Services, Providence

along with the Providence Recovery Center in Anchorage on the Providence campus. The center—for individuals age twelve and older—is a sub-acute voluntary behavioral health facility that focuses on helping individuals effectively manage psychiatric symptoms to prevent unnecessary tragedy or frequent hospitalization. Additionally, Providence offers a range of outpatient mental health services, including

Alaska Business Monthly | March 2017www.akbizmag.com


diagnostic interviews, medication management, neuropsychological and psychological testing, and individual and group therapy. It also provides substance abuse assistance for adults at the Breakthrough program, which endorses the medical model of addiction and supports the 12 Step process of recovery. Using a team-based, client-centered approach, Breakthrough gives adults in Anchorage access to substance abuse treatment, partial hospitalization, and relapse prevention programs. Adults who need critical care in Anchorage can utilize the psychiatric emergency department within Providence Alaska Medical Center. And unlike most outpatient mental health providers, Providence treats Medicaid patients. The demand for these services is tremendous, Rafferty says. “We have expanded our services and still have not been able to meet the community need,” she adds.

Southcentral Foundation Southcentral Foundation is an Alaska Nativeowned, nonprofit healthcare organization that offers a wide range of health and wellness services for about sixty-five thousand Alaska Natives and American Indians living in Anchorage, the Matanuska-Susitna Valley, and regionally. It provides regional support to residents of fifty-five rural villages in the Anchorage Service Unit, which stretches 107,400 square miles across Southcentral Alaska. In addition to serving as the regional tribal health organization, Southcentral Foundation co-manages the Alaska Native Medical

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“Southcentral Foundation rethinks the definition of ‘primary care’ to be inclusive of both physical and behavioral wellness. All of us need a balance of physical, emotional, and mental health services.”

—April Kyle Vice President of behavioral services Southcentral Foundation

Center campus in Anchorage with the Alaska Native Tribal Health Consortium. Southcentral Foundation is CIRI’s largest nonprofit. Southcentral Foundation has a robust tribal health system that encompasses physical, mental, emotional, and spiritual wellness, according to April Kyle, vice president of behavioral services for Southcentral Foundation. Customer ownership is one of the key tenets on which the system is built. “Our healthcare system is owned by Alaska Native people,” Kyle says. “We designed our system to put Alaska Natives in the driver’s seat, informing, organizing, and driving our organization.” The goal of Southcentral Foundation is to be a partner and build a relationship between each care team member, each employee, and the family. Since relationships are at the core of how well services are delivered, the system’s primary care model includes an integrated care team typically comprised of a provider,

nurse, CMA, and master’s level therapist. In addition, Southcentral Foundation has co-located psychiatry services in the primary care system. It also offers same-day access to behaviorists. “Southcentral Foundation rethinks the definition of ‘primary care’ to be inclusive of both physical and behavioral wellness,” Kyle says. “All of us need a balance of physical, emotional, and mental health services.” The system has behaviorists available to work directly with families on a one-time basis or through a series of appointments. Behaviorists can provide brief intervention work or refer customers to an array of specialists for in-depth assistance. Services include an outpatient therapy department for children and adults; residential and outpatient substance abuse treatment programs; detox management; outpatient and residential treatment for youth; and Quanna Club house for adults. In addition to behavioral health services, Southcentral Foundation

March 2017 | Alaska Business Monthly

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The Alaska Child Trauma Center’s Little Tykes playground was built in 2015 thanks to fundraising efforts. Photo courtesy Anchorage Community Mental Health Services

offers the Family Wellness Warrior Initiative. This unique program aims to end domestic violence, abuse, and neglect by creating a space where people with shared experiences can come together and share insights. Family Wellness Warrior Initiative incorporates a concept called Learning Circles, which provide a safe, healing environment where individuals build relationships, share feelings, and learn from others who are on a similar journey. Learning Circles are walk-in sessions open to anyone who is interested—without an appointment. There are currently more than ninety Learning Circles, which cover a broad range of topics. Innovative offerings like open Learning Circles support Southcentral Foundation’s effort to make each family the owner of their own journey of wellness. “Southcentral Foundation will always be in the business of redesigning wellness by putting the customer-owner in the leadership position,” Kyle says. “We will always be rethinking and redesigning to meet the needs of our customer-owners.”

Anchorage Community Mental Health Services Anchorage Community Mental Health Services (ACMHS) has been serving the state of Alaska since 1974. ACMHS focuses on promoting recovery and wellness by providing consumerdriven behavioral healthcare services in Anchorage and Fairbanks, where it also provides twenty-four-hour emergency services. Its overriding goal is to let consumers determine their own healthcare and path to the road to recovery. “Our job is not to run people’s lives, but to give them the options and let them choose,” explains CEO Jerry Jenkins. “I should be given the options because it’s my life.” Each year, ACMHS serves about 1,600 consumers in Anchorage and 500 in Fairbanks. Children make up about a third of the individuals served. ACMHS’s services are intended to 42

focus on helping people with the direst needs. ACMHS is a trauma-informed and traumatreatment capable organization that provides therapeutic services to severely emotionallydisturbed children, adolescents, and their families. These community-based services—which range from crisis intervention and assessment to trauma treatment and psychiatric services—are designed to help children and adolescents live successively in their community. A major component of ACMHS’s services for youth is the Alaska Child Trauma Center. The center specializes in providing direct trauma-focused services to children (ages three through twelve) who have experienced a complex trauma such as child abuse, neglect, exposure to domestic violence, or sexual abuse. “We’re making sure there’s a safe place for kids,” Jenkins says. “Their basic needs are getting met and they are being connected with support services that spring board them into a productive life—not into hospitals or prisons.” For adults, ACMHS caters to helping consumers who are seriously mentally ill through its Folker team of clinicians and case managers, housing and engagement services, and institutional discharge program. Often, these adults have a history of incarceration or psychiatric inpatient care and have a difficult time functioning. ACMHS’s adult services are uniquely geared to help individuals who are involved in the Alaska Department of Corrections. It offers aggressive employment and support services, as well as sober support systems to help people get on and stay on a positive path. “We measure our success by how well they stay out of prison,” Jenkins says. However, not all the adults who use ACMHS’s services have severe mental illnesses. A small segment rely on the organization’s adult day care services for individuals with dementia and Alzheimer’s. These services are increasingly becoming more vital as more baby boomers continue to age and battle health-related issues. As a positive trend, people seem to have a greater awareness about mental health and willingness to address suicide, Jenkins says. They are becoming better educated about the topic. In part, he attributes this to resources like Mental Health First Aid, an eight-hour course that individuals and organizations can take to learn how to identify, understand, and respond to signs of mental illnesses and substance use disorders.

North Star Behavioral Health North Star Behavioral Health has been helping Alaska’s youth with life challenges since 1984. A trauma-informed care agency, North Star provides intensive therapeutic nursing, psychiatric, and spiritual treatments/interventions across the spectrum of services for acute and residential treatment. “All services within the agency use an integrative, multidisciplinary, and holistic [mind, body, and spirit] approach with an emphasis on developing and cultivating resiliency traits and characteristics,” says CEP Andrew Mayo, PhD. “This approach allows the agency as a whole to serve a wide range of needs for most populations of Alaska. We have the only acute program for children in the state.”

“Our job is not to run people’s lives, but to give them the options and let them choose. I should be given the options because it’s my life.”

—Jerry Jenkins CEO, Anchorage Community Mental Health Services

North Star has a multi-disciplinary team of professionals that offer individual, family, and group therapies; recreation and activity therapies; family support/education classes; medical and twenty-four-hour nursing care; and psychological testing and medication management. “The goal of our program is to improve patients’ overall mental health and resiliency,” Mayo says. “Our acute programs work with clients to resolve more intense symptomology that interferes with daily functioning. In our acute facilities the common conditions we treat are mood disorders, such as depression and psychosis, and trauma-related issues, such as physical and sexual abuse.” North Star serves youth through three acute and residential treatment programs: the Trail Program, Alpine Academy, and the Summit. The Trail Program serves children and teens ages four to eighteen; Alpine Academy offers treatment services to adolescent girls ages twelve through eighteen; and the Summit serves preteen and teen boys ages eleven to eighteen. Systemwide, North Star has the capacity of 140 acute beds (36 adult, 30 adolescent girls, 38 adolescent boys, 20 preteens, and 16 children). Its residential programs have the capacity for 60 total beds, with 30 beds in Palmer. North Star also offers specialized treatment for service members and veterans ages eighteen and older through the Chris Kyle Patriots Hospital. The hospital, which opened in 2015, provides a dual track treatment program for military service members and veterans who have experienced trauma and are in need of detoxification and/or rehabilitation for substance abuse. The inpatient treatment program provides intensive trauma-focused multi-disciplinary treatment, such as psychotherapy, nursing, psychiatric, and spiritual, with the goal to improve patients’ overall resiliency. “We are proud to work with this population and appreciate the collegial relationship with other providers that offer varying levels of care such as the military behavioral health units and the VA system,” Mayo says. The Chris Kyle Patriots Hospital is like no other program in the state. Most of the hospital’s staff have either served in or have family members who have served in the military, uniquely qualifying them to relate to patients. “This program allows the patients

Alaska Business Monthly | March 2017www.akbizmag.com


to feel safe with others who have served and had similar experiences,” Mayo says. “As all of the patients have at least one thing in common, the camaraderie of their experience is a crucial part of the healing process.”

Access Alaska Access Alaska is a private, nonprofit organization that provides independent living services to people who experience a disability. Its mission is to encourage and promote the total integration of people who experience a disability and Alaskan elders to live independently in the community of their choice. As an independent living center, Access Alaska offers a variety of services designed to give Alaskans with disabilities the tools and resources they need to enhance independence, self-confidence, knowledge, skills, and access to community resources. It focuses on five core areas: information and referral, independent living skills training, individual and systems advocacy, deinstitutionalization or nursing home transition, and peer counseling for mental, physical, developmental, and other disabilities. “We’re all about helping people live in the community,” says Executive Director Doug White, LCFW. Access Alaska also operates an Independent Wellness Program that serves adults with serious mental illness in the Anchorage and Fairbanks regions. The program helps participants with a wide variety of issues, including anxiety, severe depression, post-traumatic stress disorder, and traumatic brain injury. However, the Independent Wellness Program does not provide counseling or psychiatric care. Instead, it is a mental health service coordination program that offers an alternative to the traditional mental health center model. Access Alaska’s Independent Wellness Program service providers deliver case management and skill building in the community to adults who want control over the development of their treatment plan and services delivered. With offices in Anchorage, Fairbanks, Kenai, and Wasilla, Access Alaska works across disabilities to serve a broad segment of the state. It assists people of all ages, but typically works with individuals fourteen and older. Anyone with any type of physical or mental impairment that significantly impacts their ability to live independently in the home and community can use the organization’s services. And its information and referral services are available to anyone, regardless of disability status. “We work with anyone who has a significant barrier to full access in the community,” White says. Access Alaska provides consumer-directed services. This means that the individuals who use the services know what works best for them and determine the type of care they need. “We find that consumer-directed care empowers people to live their lives to their fullest,” White says. In addition to being a consumer-driven organization, Access Alaska is staffed primarily by people who experience disabilities, and its board of directors is comprised of a majority of people with disabilities. Consequently, the staff and board members have a deep, personal understanding of the challenges and barriers that www.akbizmag.com

are encountered by consumers who choose to live independently. “We are operated by and for people with disabilities,” White says.

Other Mental Health Resources There is an array of other entities available to help Alaskans address mental and behavioral health issues, including Alaska Psychiatric Institute, Akeela Inc., the Alaska Mental Health Consumer, the Alaska Native Tribal Health Consortium, and the Alaska VA Healthcare System. Additionally, Alaskans can receive help for mental illness by visiting alaska211.org or the Substance Abuse and Mental Health Services Administrations treatment services locator at findtreatment.samhsa.gov. People can also

call the Alaska Mental Health Board (888464-8920), the Alaska Peer Support Consortium (907-258-2772), or SAMHSA’s 24/7 treatment referral line (800-662-4357). Assistance is also available through carelinealaska. com, which provides confidential 24/7 crisis support and suicide intervention. Military veterans and service members can reach out to the National Veteran’s Crisis Line available by phone (800-273-8255), text (838255) or online (veteranscrisisline.net). R

Freelance writer Tracy Barbour is a former Alaskan.

March 2017 | Alaska Business Monthly

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TRANSPORTATION

Ports and Harbors 2017 A look at waterfront construction this year

© Kevin G. Smith / AlaskaStock.com

Fishing boats returning from fishing for silver salmon outside of Valdez where the work continues on a new $82 million boat harbor.

By Sam Friedman

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ore than $330 million in construction projects are scheduled for Alaska’s waterfronts this year despite a near shutdown of the state legislature’s capital projects budget that traditionally paid for this kind of work. Some of this year’s biggest port and harbor construction jobs include $127 million for the beginning of a modernization project at the Port of Anchorage and $45 million for upgraded dock infrastructure in Dutch Harbor. In Valdez this year, work continues on a new $82 million boat harbor that’s been in the works for four years. Seward plans to build a $15 million breakwater around its new boatyard. In the absence of fresh capital funding from Juneau, the projects are being financed by a mix of local bonds, federal sources like the Army Corp of Engineers, old state alloca44

tions, and one surviving fresh source of state funding, the Harbor Facility Grant program.

Valdez Valdez is the terminus of the trans-Alaska oil pipeline. It’s on Prince William Sound and is 299 road miles from Anchorage. 2017 plans: This year the city plans to continue construction of a new commercial boat harbor. The $82.6 million project is funded by the city and the Army Corps of Engineers. Port and Harbor Director: Jeremy Talbott Harbor: There are 511 slips in the small boat harbor. The new commercial boat harbor has 140 slips. Port: The City of Valdez manages a cruise ship terminal and a container terminal. The cruise ship terminal is 600 feet long. The container terminal is 700 feet long. Port traffic: The port specializes in large cargo like construction and mining equipment because there’s little traffic and no

highway overpasses between Valdez and the Interior. The city facilities average between 35,000 and 50,000 tons of freight a year over the past five years. Fish processors Silver Bay Seafoods and PeterPan Seafoods ship fish from the city port in Valdez. Last year the trans-Alaska oil pipeline transported an average of 517,500 barrels of oil to Valdez per day.

Seward Seward is the southern terminus of the Alaska Railroad. It is 126 miles from Anchorage over the Seward Highway. 2017 plans: The City of Seward plans to complete a new 960-foot, $15 million breakwater this year that will protect a new harbor to accommodate vessels larger than 70 feet. In addition, the Alaska Railroad anticipates about $1.5 million in new construction in 2017 including power upgrades in a storage yard and a widening of its freight dock.

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The Crystal Serenity at the Alaska Railroad cruise ship dock on the left and the USCG Cutter Healy at the railroad’s freight dock on the right last summer before the Crystal Serenity’s voyage to New York through the Northwest Passage. © Luke Davis Photography / Courtesy of the Seward Port

Harbor master: Norm Regis (Deputy Harbor Master Matt Chase was the source for this article). Alaska Railroad owns the railroad dock in Seward. Christy Terry is the Seward port manager for Alaska Railroad. Harbor: The city’s existing harbor is near downtown Seward and has space for 660 boats. The new breakwater is located in the Seward Marine Industrial Center, which is about six miles from Seward on the east side of Resurrection Bay. The new facility has services including storage space and boat lifts but doesn’t yet have floats for the large boats. Port: The Alaska Railroad operates three main docks, the 736-foot cruise ship dock, 46

the 620-foot freight dock, and the 1,700-foot mooring dock. The mooring dock was previously known as the coal dock when it was used to export coal. Port traffic: About 180,000 cruise ship passengers visited Seward in 2016. Seward exported coal from the Usibelli Coal Mine near Healy until this year. Fish processors Resurrection Bay Seafoods and Seward Fisheries are in Seward.

Whittier A narrow tunnel links this Prince William Sound port to the Alaska road and rail system. The harbor is home to a small fishing

fleet and a larger recreational fleet. 2017 project: The City of Whittier is trying to secure a loan to rebuild some of its harbor floats in 2017. The Alaska Railroad plans small improvements to two of its docks. Harbor Master: Andy Dennis (City of Whittier); Paul Farnsworth is the Alaska Railroad’s Director of Facilities and Energy Management. Habor: Space is tight in the Whittier Harbor. There’s a waiting list of more than three hundred people for a preferential slip. The harbor contains 358 slips. There are an additional 99 slips at the privately-owned Cliffside Marina and Yacht Club.

Alaska Business Monthly | March 2017www.akbizmag.com


©Scott Dickerson / AlaskaStock.com

The Homer Boat Harbor at the end of the Homer Spit in Kachemak Bay.

Port: The Alaska Railroad owns three dock facilities in Whittier, the main barge dock for rail freight, the Delong Dock for seafood, and a mooring facility attached to the Delong dock. Port Traffic: Whittier is the only the port in the state for rail freight, rail cars that roll directly off of barges and onto tracks. Between 2014 and 2016 an average of 465,000 tons of cargo went out over the main barge dock. Last year an additional 50,343 tons of non-rail cargo was processed over the mooring facility. The Delong Dock averages about 11,750 tons of fish, but last year was a slow year and only 5,439 tons went out over the dock. Cruise ships visit the railroad’s docks, but not nearly as many as the Railroad’s Seward facilities.

Anchorage Alaska’s largest city is home to the state’s largest cargo import terminal. 2017 plans: 2017 is scheduled to be first year of a $556 modernization project at the port. The project is expected to take five or more years. Port Director: Stephen Ribuffo Harbor: Anchorage doesn’t have a municipal marina in Cook Inlet because of the inlet’s strong tides and winter ice. www.akbizmag.com

Port: The ports has three general cargo terminals and two petroleum terminals. Port traffic: The port handles more than 3.5 millions tons of goods each year.

Homer Located in a southwest edge of the Kenai Peninsula, Homer is a fishing and tourism center. It’s about 220 miles from Anchorage over the Sterling Highway. 2017 plans: There are plans to expand the Deep Water Dock, but construction won’t start in 2017. The city recently finished a twoyear, $30 million building boom that covered twenty-five projects including renovations to the small boat launch ramp and the construction of a new harbor office. Harbor Master: Bryan Hawkins Harbor: The harbor is located at the end of the Homer Spit and has nine hundred slips over fifty acres in a single basin. The largest slips can hold vessels up to 86 feet, and there’s transient space for vessels up to 180 feet. Port: Large vessels use the Pioneer and Deep Water docks. The Pioneer Dock is 469 feet and the Deep Water Dock is 345 feet. Fishing vessels unload seafood at the fish dock inside the harbor. Port traffic: The Pioneer Dock is the terminal for fuel barges and state ferries. The Deep Water Dock is often used by tugboats

and barges that are transferring crews or doing maintenance work. Boats associated with Cook Inlet oil and gas drilling have staged at the Deep Water Dock. Two fish processors and two fish buyers use the fish dock. The port processed an average of 3,944 tons of seafood, 22,562 tons of other cargo, and 453,855 tons of fuel in 2014 and 2015, the two most recent years with data available.

Kodiak Kodiak Island is a major seafood processing center in the Gulf of Alaska. 2017 plans: The city plans to replace a four hundred-foot float for transient vessels in 2017. The project will cost about $2.2 million and was financed through the city and through the state’s harbor grant program. Harbor Master: Lon White Harbor: These is space for about six hundred boats between two harbors. Ports: There are three large city-operated piers. The ferry dock is used mostly by the Alaska Marine Highway System. Pier II, the Fisherman’s Terminal, is 1,050 feet long and is used by cruise ships and large fishing vessels. Pier III, the cargo terminal, contains a new 330-foot dock and an old 429-foot dock. The new dock was completed in 2016. The dock can move shipping containers with the newest and largest gantry crane in the state.

March 2017 | Alaska Business Monthly

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Š Jason Merculief, St. Paul Island Harbor Master

St. Paul Island small boat harbor where the City of St. Paul completed harbor-wide repairs last year.

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Cargo is also shipped through the privatelyowned LASH Marine Terminal near US Coast Guard Base Kodiak. Port traffic: The public port facilities ship an average of about 130,000 tons of goods a year. Seafood is the port’s main export.

Nome Nome is located just south of the Arctic Circle on the Seward Peninsula. For now it’s a regional hub, but the community has been planning for larger ships as more boats travel the Arctic through the Northwest passage. 2017 plans: The community is working to develop more layout storage space in 2017. Longer term, Nome continues to work with the Army Corps of Engineers on the development of a deep draft port. The project would involve dredging the harbor so that large vessels could dock there. Port director: Joy Baker Harbor: The harbor houses the fishing fleet of about twenty-five boats in addition to gold mining dredges and a small fleet of barges. There’s not much harbor space, but few transient boats travel to Nome. Some boats anchor in the Snake River, which flows into the Norton Sound in Nome. Port: There are two docks that are each about two hundred feet long. Port traffic: Nome exports rock and sand to area communities for use in construction. The community hopes to one day export graphite from a proposed graphite mining project. Between 2006 and 2016 an average of thirty-six thousand tons of freight passed through the port each year. Dutch Harbor Dutch Harbor is a major seafood processor and a large seafood exporting port. Port Director: Peggy McLaughlin 2017 plans: This year the city is working on a $45 million update to the Unalaska Marine Center project. The new construction will add about two hundred feet of gantry crane rail so that cranes will be able to unload or load more of a boat without moving the boat. www.akbizmag.com

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St. Paul St. Paul is the main community in the Pribilof Islands in the Bering Sea. It’s on the northern frontier of commercial fishing. 2017 plans: There no new construction plans for 2017. Last year the city finished completed harbor-wide repair. Harbor master: Jason Merculief Harbor: The small boat harbor has about twenty slips for boats smaller than sixty feet. The floats are pulled up at the end of the summer. Port: The city owns 100- and 200-foot docks. The Tanadgusix Corporation—the St. Paul village corporation—owns a 350-foot dock. Port traffic: Alaska Marine Lines uses the 200-foot city dock to provide freight service to the Pribilofs. Fuel barges also use this dock. Fish processor Trident Seafoods uses the Tanadgusix dock to export halibut and snow crab. The Seattle-based company describes its St. Paul processing facility as the largest crab processing facility in the world.

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A Maersk container vessel, Sea Land Charger, at Dutch Harbor in Unalaska Bay where the City of Unalaska is working on an update to the Unalaska Marine Center. © Dan Parrett / AlaskaStock.com

Harbor: The Robert Storrs International Small Boat Harbor has space for about forty slips and is used mainly by recreational boats. The Carl E. Moses Boat Harbor can hold sixtytwo vessels between 60 feet and 150 feet long. A third facility, the spit dock, can provide long or short-term moorage to vessels up to 200 feet. Port: The City of Unalaska operates several docks. The Unalaska Marine Center contains about 2,041 feet of dock face with both a thirty-ton and forty-ton crane for containerized freight. The Light Cargo Dock is made of two sheet piles. It was expanded to 2016 to create more moorage space. Shipping companies Alaska Marine Lines and American President Lines have their own freight facilities in Dutch Harbor. Port traffic: An average of 1 million tons or more of cargo is handled over the city-owned docks each year. Four fish processors operate in Unalaska or nearby in Akutan. In addition to its own seafood, Dutch Harbor is a major seafood shipper for other Alaska processors sending products to Asian markets.

Port MacKenzie Port MacKenzie is a new industrial port in the Matanuska Susitna Borough, built for export-

ing raw materials. The project needs about $125 million to complete a rail spur to the Alaska Railroad line in Houston in order to realize its full potential as a low-cost exporter. 2017 plans: For the first time in more than fifteen years, there isn’t new construction planned at Port MacKenzie for 2017. State capital project spending, a major source of construction funding, has dried up with the state’s fiscal crisis. Port Director: Marc Van Dongen Harbor: The facility is designed only for large industrial boats. There is no marina facility or boat launch. Port: The port has a 1,200-foot deep-draft dock that’s 60 feet deep and has a conveyer belt system that can load bulk commodities at 2,000 tons an hour. There’s also the bulk head barge dock, a 14.7 acre gravel pad with a 500-foot face for docking. Port Traffic: The port has imported about 8.5 tons of cement each year in recent years. Last year the port imported sixteen miles of pipeline for the Kitchen Lights Gas Platform in Cook Inlet. The port has exported products for rural communities including sand, gravel, and prefabricated homes.

Skagway Skagway is a tourism-centered community at the northern end of Southeast Alaska. It is 118 miles by highway to the territorial capital of Whitehorse, Yukon. Harbor Master: Matt O’Boyle. Tyler Rose is the spokesman for White Pass and Yukon Route Railroad.

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© Mark Kelley / AlaskaStock.com

A Juneau boat harbor at Douglas Island.

2017 plans: No major infrastructure upgrades are planned this year. Harbor: The Municipality of Skagway Borough operates a small boat harbor which has 103 slips and two thousand feet of linear moorage. There are a no fish processors in Skagway, but a handful of gillnetting boats are based there. Port: The White Pass and Yukon Route Railroad, a Toronto-based company, owns and operates three deep water docks in Skagway: the Railroad Dock, the Broadway Dock, and the Ore Dock. The company also owns a historic narrow-gauge railroad that historically serviced lead and zinc mines. It’s now a tourist attraction. The Municipality of Skagway uses the east side of the Alaska Marine Highway System’s ferry terminal. The ferry float can be used to moor motor yachts and small cruise ships. 52

Port traffic: Most cruise ship passengers use the White Pass docks. There were more than three hundred cruise ship dockings at the three docks last year. White Pass’ Ore Dock also handles fuel barges and copper concentrates that are being exported from the Minto Mine in Yukon Territory. Alaska Marine Lines leases space for its freight barges.

Juneau Alaska’s state capital is a main hub for cruise ships. It also has a modest fishing fleet. 2017 plans: Numerous major capital projects will begin or end this year in Juneau. This May work will end on a $54 million project to expand two city cruise ship docks to postPanamax size, for ships larger than the maximum size that can transit the Panama Canal.

This year the city will advertise a $4 million upgrade to floats in Aurora Harbor. Dredging begins this year on a $4.5 million project for new floats at Statter Harbor that will be used by charter fishing and whale watching ships. Port Director: Carl Uchytil Harbor: Juneau’s four small boat harbors can accommodate about 1,300 boats. Port: The City and Borough of Juneau operates two cruise ship docks that, as of 2017, will be able to serve post-Panamax size vessels. Two additional private docks can also accommodate post-Panamax ships. Alaska Marine Lines and Samson Tug and Barge provide freight service at their own facilities. Port traffic: More than 1 million cruise ship passengers came to Juneau in 2016. Fishing isn’t as important a part of the Juneau

Alaska Business Monthly | March 2017www.akbizmag.com


Photo by Ruth Carter / Courtesy of Alaska DOT&PF

Inspection of the Sitka Breakwater project by Alaska Department of Transportation & Public Facilities employees.

economy as it is in other Southeast communities, but the city nonetheless ranked as the 35th largest seafood processor in the nation.

Sitka Sitka is a principal port and harbor for the central section of Southeast Alaska. Its harbors are used by a mix of fishing and tourism businesses. 2017 plans: The city is trying to secure a grant to replace the floats in Crescent Harbor, where the oldest wooden docks were built in 1965. Harbor master: Stan Eliason Harbor: The Sitka Borough and City operates five harbors. Combined they have a total of 1,315 slips. Port: The city and borough operate the City Wall dock, which can accommodate vessels up to 300-feet long. Private transportation companies Alaska Marine Lines and Samson Tug and Barge have port facilities in Sitka. Another business, Halibut Point Marine Services, operates a dock north of town that can be used by large cruise ships, cargo ships, and fishing vessels. Port traffic: The main boats using the municipal port facilities are smaller cruise ships, seafood tenders, and boats using the City of Sitka’s boat hoist. 54

Ketchikan Located near the southern end of southeast Alaska, Ketchikan is the gateway to the inside passage marine route. Ketchikan is surpassed only by Juneau in the number of cruise ship visitors it attracts. 2017 work: The city doesn’t plan any new construction in 2017, but is competing for a state grant to make one of the ramps at Bar Harbor North handicap accessible. Senior Harbor Master: Dan Berg Harbor: The city operates six harbors and has slips for about 950 vessels. The city attracts a large fleet of pleasure boaters from the Puget Sound area, which have to stop to clear customs before continuing to other Inside Passage communities. Last year about 100 commercial fishing boats with seining gear and about 100 gillnet boats spent part of the summer fishing out of Ketchikan. Port: The city port has four berths that can each accommodate large Panamax-sized cruise ships. Alaska Marine Lines and Crowley provide freight service at their own facilities. In addition to the state marine highway system, the Inter-Island Ferry Authority provides ferry service between Ketchikan and Hollis on Prince of Wales Island. Port traffic: About 970,000 cruise ship passengers visited Ketchikan in 2016. On a busy

day seven cruise ships may visit Ketchikan in a single day, taking turns using the four city berths.

Petersburg The harbor in this small southeast Alaska town is used mainly the commercial fishing fleet and local barge service. 2017 work: No new construction is planned. In 2016 the city completed construction of a new drive-down dock, a $1.4 million project financed mostly with a grant from the state legislature. Harbor Master: Glo Wollen Harbor: The municipal harbor has 577 slips between three harbors. Port: There is an Alaska Marine Highway ferry terminal and private barge service from Alaska Marine Lines and from Samson Tug and Barge. Ties at the end of the municipal harbor floats can accommodate vessels as long at 150 feet. Port traffic: The harbor is used mostly by commercial fishing vessels. Cruise ships that hold as many as two hundred people can use the harbor floats. R Sam Friedman is a freelance reporter. He lives in Fairbanks.

Alaska Business Monthly | March 2017www.akbizmag.com


Anchorage has 1,423 wharf piles that have lost up to 75 percent of their original thickness to corrosion. Photographed April 8, 2016.

Make the Port of Anchorage Great Again The Port of Anchorage opened shortly after statehood in 1961: ● Survived the Good Friday Earthquake ● Supported earthquake recovery, oil and Alyeska pipeline development, and statewide economic growth ● Handles half of all Alaska inbound freight, half of which is distributed outside of Anchorage ● Department of Defense designated strategic seaport Age and corrosion are now sapping Anchorage dock strength and earthquake resistance and existing terminals will start closing in about ten years, regardless of seismic activity or anything else.

Port Modernization Program

Anchorage is replacing its docks and associated facilities to: ● Improve operational safety and efficiency ● Accommodate modern shipping operations ● Improve resiliency – enable facilities to survive extreme seismic events and region’s harsh marine environment for at least 75 years ● Project construction will take at least seven years and employ some 300 Alaska workers during peak phases (scheduled to begin in 2017)

Who Pays

Port modernization will benefit all Alaskans. Anchorage is moving forward to rebuild its docks before they fail. It asked State legislators to support a $298 million statewide general obligation bond referendum or other funding mechanism in 2017 to help pay for the project. All remaining project funds are either in hand or will come from other sources, including Port revenues. Who do you think should pay? Learn more at portofanc.com.

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Engineering an Arctic Harbor is a Complex Specialty Sedimentation, tidal fluctuations, and noise challenges abound By Darryl Jordan

A

laska not only lost a chance for new resource development in the Chukchi Sea when Royal Dutch Shell announced a long suspension of oil exploration activities in September 2015, but within a month the study of a new Alaska Deep-Draft Arctic Port System (Arctic Port) also ended after four years. The US Army Corps of Engineers – Alaska District, in partnership with the State of Alaska, stated the suspension of the Arctic Port study would last twelve months in lieu of immediate termination. By October 15, 2016, the time would be used to find economic justification for the port study other than the armada supporting an oil and gas operation that had just vanished. Even though the suspension time period technically lapsed five months ago, both the Corps and the State of Alaska confirmed that the status is still suspended. The good news for Alaska business is that the suspension has not yet turned into a termination for economic reasons.

Earlier Port Problems The Arctic Port would not be the first port to be terminated for economic reasons. At the end of the 19th Century, the largest port on the Cook Inlet was named Knik. It was a port that was supported by the Knik docks in the sense that a port is defined by a place where ships load or unload. Indeed, Knik, at the northern tip of the Knik Arm of Cook Inlet, was chosen by thousands of gold prospectors as their jumping off place to unload their equipment to head further North to the Alaska gold fields. There were thirty serious gold rushes to Alaska from 1880 to 1914. While the 1896 gold rush to the Canadian Klondike had numbers in the tens of thousands of miners, the numbers in Alaska were more modest but still measured in the thousands. The Nome gold rush of 1898 created the port of Nome, the river port on the Chena River was created by gold found in Fairbanks in 1902, and later gold discoveries at Iditarod in 1908 created a demand for a route into Interior Alaska. Early prospectors could use Dena’ina trails and Dena’ina guides to access the gold of Ophir. The gold rush towns of Iditarod and nearby Ophir became ghost towns when the gold played out; but Ophir is a checkpoint on the Iditarod race trail. These later gold fields created the port of Knik and the Southcentral economic center www.akbizmag.com

for trade and commerce in the early 1900s. Prospectors, once landed at Knik, purchased goods and services, all of which would also have to be shipped to Knik or procured from the local Dena’ina or other Athabaskan tribes trading at Knik. Ten days’ travel by foot (less by horse or dog sled) would provide access using the Dena’ina routes for the prospectors seeking their fortune. Getting into the 1900 Knik dock was a different problem. Sailing into the Cook Inlet with a ship large enough to cross the ocean did not allow a landing in shallow waters. Even at high tide, these vessels could not navigate the branch of the Cook Inlet, the Knik Arm. The result was a large number of lightering vessels which would journey to the Knik dock with an incoming tide to make delivery. Cook Inlet

used that ice to cross to Knik. These factors would doom the Knik dock and port as all the traffic and business moved to Anchorage.

Depth of Draft The Port of Anchorage has many of the same problems. Depth of draft is one of them, though better than the old Knik port, which was zero at low tide. A standard medium sized cargo ship is a Panamax freighter, appropriately named as it would be the largest ship that could fit through the Panama Canal. These ships have a strict limit in depth of draft of 39.5 feet. The Port of Anchorage has a published draft depth of -35 feet, eliminating full use of the standard sized medium freighter. The Corps defined a deep-draft port as having a depth greater than 35 feet. Across

“All water traffic into and out of Knik was based on the tides. They often would leave Knik at high tide and get as far as Fire Island where they would overnight and catch the next high tide out going south.”

—Coleen Mielke Matanuska Historian and Author

tides are impressive: the difference between the highest high tide level and the lowest low tide level is more than thirty-nine feet. The port of Knik was busy but had a problem. Coleen Mielke, Matanuska historian and author of The History of Knik, Alaska: A Boomtown, elaborates, “All water traffic into and out of Knik was based on the tides. They often would leave Knik at high tide and get as far as Fire Island where they would overnight and catch the next high tide out going south.” When asked if she had heard about the Knik port tidal problems leading to the creation of a new dock at a location where tides were not a factor, Mielke says, “Yes, according to the old journals, the deepwater in front of Ship Creek was called Knik-Anchorage. The name came from the necessity of the larger steamers and schooners [which needed that deepwater port in which to ‘anchor’]. The old journals use the terms ‘Ship Creek Anchorage,’ ‘Knik Anchorage,’ and ‘Fire Island Anchorage.’ Not until 1915, when the railroad camp blossomed into a town, was it named Anchorage.” Anchorage and the Port of Anchorage derive their name from an engineering problem at the Knik dock. Tides, depth of draft, and ice were problems for Knik more than one hundred years ago. In the early 1900s the Knik Arm froze over with enough ice that the original Iditarod trail, which ran from Seward to Knik before heading further north,

the Knik Arm, Port MacKenzie is a deep draft port with 60 feet of depth at low tide. It can support both Panamax and Cape-size freighters, making it the northernmost deepdraft port in Alaska. The Port of Anchorage recognizes the need to accommodate a medium sized cargo ship and has engineered plans to change the depth to -45 feet.

Sedimentation The engineering is not as simple as just building the dock out into deeper water. The Port of Anchorage Modernization Project intends to build further out, but the engineering is complex. The current dock needs to be dredged on a regular basis to maintain the -35-foot depth. Sedimentation is an engineering issue. As the Knik and Matanuska Rivers flow into the Knik Arm and pass the Port of Anchorage, one would think the sedimentation comes from these rivers, carried downstream by the tides. In reality, engineering has revealed that most of the sediment is carried into the port area by tides carrying sediment from the Susitna River. An outgoing tide can get up to speeds of fifteen feet per second and scours the western bank of the Knik Arm, making Port MacKenzie a deep-draft port. The eastern bank near Anchorage only gets an eddy current with slower outgoing waters. Modelling conducted at the Corps of Engineering Waterways Experimental Station in Little Rock, Arkansas, demonstrates that an

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incoming tide floods the Knik Arm, bringing in sediment from the Susitna River in a complex depositional manner. So complex that building the Port of Anchorage dock further into the Knik Arm may cause a new pattern to develop which may deposit even more sediments, creating less depth of draft rather than the planned -45 feet. Other Arctic ports also have sedimentation issues. The Nome dock has 22 feet of draft at the end of the dock. This draft is affected by sedimentation deposited by longshore currents. Nome is situated on a beach with prevailing winds running perpendicular to the shoreline. These waves tend to create longshore drift currents which push deposits along the beach until it runs into the dock and breakwater, potentially destroying the purpose of the dock being built out into deeper water. In this situation, the engineers have dredged a “sink” for the deposits to land into before reaching the dock structure. This solution creates a need to regularly clean out the “sink,” but does keep the port open.

Point Barrow will not have much of a problem matching the decks of the dock and ship. In other areas of the State, the dock must be able to accommodate ships, and, with a large tide height, the ship and dock vertical positions must continually change if the dock is at a fixed height. Ramps must be engineered to not only accommodate the vertical changes but horizontal distances between the dock and ship. At the height of the tidal shift the ramp needs to be 1.5 times longer than when the ship and dock start out even. The bigger problem with high tidal variation is ice loading. Obviously, tides could push an ice sheet into the dock and damage the facility and this force must be resisted by the dock. An engineer must also account for ice that can form along the entire length of the pile where each successive tide can add a new layer of ice in the tidal zone. The ice acts not only with more force due to gravity when the tide is out but acts with force in the opposite direction when the attached ice becomes buoyant when the tide is in.

High Tides The high tides bring several more problems to several Alaska ports. It is a myth that high tides are associated with increasing latitude. High tides are a function of the ocean being constricted by a land mass and not having a place to go, the same as a storm surge. Thus not all Alaska ports deal with a tide problem. Point Barrow, for example, in March will see about 0.5 feet of change in the tide height.

Corrosion Oxidation is the fancy name of the rust that forms on pilings made with iron (such as steel) or concrete piles using rebar for reinforcement. Water, particularly water with the ability to conduct electricity through electrolytes in the water (such as seawater), when combined with oxygen, will oxidize the iron. If carbon dioxide is available, a weak carbonic acid will form and speed up the process.

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For a steel pile, the tides will wet the surface every tidal cycle with sea water and then be exposed to the carbon dioxide in the air, accelerating corrosion in the wetted areas. It is totally wet below the waterline too, but the supply of nearby carbon dioxide does not get replenished as quickly. Corrosion is such a large problem for the Port of Anchorage it estimates the dock will be unusable in ten years, less if a large earthquake overloads the already weakened corroded piling. To address the problem, the Port of Anchorage is poised to replace the old piling with new forty-eight-inch diameter, one-inch-thick piling. The entire project is estimated (in 2016 dollars) at $556 million in three phases. The first phase begins in 2017, finishing the $127 million phase by the end of 2018. The modernization project is not a port expansion, but will essentially renew or rebuild the 1960s structure. With the sedimentation issues and price tag of the modernization effort, Port Director Steve Ribuffo explains why the dock won’t be moved from its current location: “We hear a lot about why we don’t build in Seward or somewhere else. I would argue that the infrastructure, paid for by private industry, would have to be convinced to move too. Since ‘64, an entire logistic hub has been built up here in Anchorage.”

Minimizing Noise The docks around Alaska built before 1972 were not required to consider the “harass-

Alaska Business Monthly | March 2017www.akbizmag.com


ment” of marine animals while driving pilings or changing the marine habitat with new structures in or along the shoreline. The same law, the Marine Mammal Protection Act, that prevents an illegal taking of a seal, sea otter, or beluga whale, also protects against harassment or endangering marine habitat. As the marine animals rely upon their underwater hearing to survive, driving a pile can cause harm to these mammals which are known to frequent Cook Inlet. A modern engineering problem is how to minimize the noise. Pile driving is an engineering science dedicated to getting energy through the piling to the pile tip to displace the soil or even rock to make room for the pile. If you drive a large nail, the size of the hammer and energy used to drive the nail goes up the further the nail is driven. The Port of Anchorage will need to drive their forty-eight-inch diameter pile hundreds of feet and the energy required will be large. Harmonics will be used to deliver as much of that energy to the pile tip as possible but much of it will escape to the sides of the pile through vibration. Above water driving a pile might be a large bang, but under water the water compression is known to kill fish adjacent to the pile and damage senses of marine mammals. As Alaska ports are generally teaming with marine mammals, engineers make considerable efforts in the planning and execution to reduce the danger. In August of 2016, engineers and scientists at CH2M Hill concluded their analysis. The analysis concluded a ten-pile indicator test program using the forty-eight-inch piling planned for future construction. Steve Ribuffo reports that the data will be used to formulate future permits, plans, and techniques. In addition to drive characteristics, effects of currents, and above ground noise levels, data was gathered to demonstrate that a bubble curtain surrounding the portion of the pile in the water effectively reduced the in-water noise transmission.

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Complex Specialty There are about one hundred harbors in Alaska, and most have been released to the local communities except for twenty-two that are still owned by the State of Alaska. As a result, Michael Lukshin, the State of Alaska Port and Harbor Engineer, does not contribute engineering on many of the harbors and docks in Alaska; however, Lukshin agrees that harbor engineering is one of the most complex specialties of the engineering disciplines, saying, “Marine structures in Alaska are different in that they must maintain their function despite high seismicity, topography, lack of information, in addition to winds, waves, currents, the corrosive effects of seawater, the sensitivity of marine life to human activities, and the changeable features of the coast which offers a unique set of challenges. It’s tough!” R Freelance writer Darryl Jordan lives in Anchorage. www.akbizmag.com

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SPECIAL SECTION

Building Alaska

2017 Alaska Construction Spending Forecast By Scott Goldsmith and Pamela Cravez For Associated General Contractors of Alaska Construction Industry Progress Fund, January 2017.

Dear Alaskans, The Construction Industry Progress Fund (CIPF) and the Associated General Contractors of Alaska (AGC) proudly offer the Alaska Construction Spending Forecast as a guideline to construction activity and its effect on the 49th State in the year ahead. Under a special arrangement with the Institute of Social and Economic Research (ISER) at the University of Alaska Anchorage, Scott Goldsmith and Pamela Cravez have again compiled and written the Forecast. The forecast reviews construction activity, projects and spending by both the public and private sectors for 2016. CIPF and AGC are proud to make this publication available annually and are confident it provides useful information for many of you. We recognize in these times of economic uncertainty there is a likelihood of reduced construction activity, and some of this information contained herein may change. The construction trade is Alaska’s third largest industry, paying the second highest wages, employing over 16,000 workers and contributes $6.5 billion to Alaska’s economy. The construction industry reflects the pulse of the economy, and when it is vigorous so is the state’s economy. Therefore, it is imperative to keep building and repairing necessary infrastructure laying the groundwork for the future.

Overview The total value of construction spending “on the street” in Alaska in 2017 will be $6.5 billion, down 10% from 2016.1, 2, 3 Oil and gas sector spending will fall 15% to $2.4 billion, from $2.9 billion last year. All other construction spending will be $4.0 billion, a decline of 7% from $4.3 billion last year. Private spending, excluding oil and gas, will be about $1.6 billion, up 2% from last year—while public spending will decline 12% to $2.5 billion. Wage and salary employment in the construction industry, which dropped by 8.5% in 2016 to 16.2 thousand, will drop another 7.4% in 2017 to 15,000, the lowest level in more than a decade.4 In 2016 the Alaska economy slipped into a recession that is expected to continue at least through 2017. Total wage and salary employment fell in 2016 by 6,800, about 2%. This year it is anticipated the decline will be 7,500, or 2.3%, which will return the economy to the 2010 level.5 Weakness in the economy is also reflected in a net outmigration of population over the last four years.

AGC is a nonprofit, full service construction association for commercial and industrial contractors, subcontractors and associates. CIPF is organized to advance the interests of the construction industry throughout the State of Alaska through a management and labor partnership.

Michael I. Shaw CIPF Chairman

T

he economic decline has been the result of the precipitous drop in the price of oil that began in the second half of 2014, after it had reached a high of $110 per barrel. By early 2015 it had fallen below $50, and after moving higher for a few months it plunged again over the next year to a low close to $25 in the spring of 2016. However, since then the price has again moved up, and it has been fluctuating around $50 as the new year begins. The outlook for the price remains unclear as the world oil market struggles to balance slow-

Our revised projection for 2016 was $7.2 billion, lower than the original estimate of $7.3. This revision is primarily the result of lower than anticipated oil and gas spending in 2016. We define construction spending broadly to include not only the construction industry as defined by the U.S. Department of Commerce and the Alaska Department of Labor, but also other activities. Specifically, our construction-spending figure encompasses all the spending associated with construction occupations (including repair and renovation), regardless of the type of business where the spending occurs. For example, we include the capital budget of the oil and gas and mining industries in our figure, except for large, identifiable equipment purchases such as new oil tankers. Furthermore, we account for construction activity in government (like the carpenter who works for the school district) and other private industries. The value of construction is the most comprehensive measure of construction activity across the entire economy. 3 “On the street” is a measure of the level of activity anticipated during the year. It differs from a measure of new contracts, because many projects span more than a single year. 4&5 Alaska Department of Labor 1 2

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BUILDING ALASKA SPECIAL SECTION

West Dowling Road Improvement, Anchorage, built by Granite Construction Company. © Danny Daniels

CROWLEY FUELS 2017 Alaska Construction Spending Million Change $6,463 -10% $4,033 -7%

TOTAL TOTAL EXCLUDING OIL AND GAS PRIVATE $4,008 -9% Oil and Gas $2,430 -15% PRIVATE EXCLUDING $1,578 2% OIL AND GAS Mining $187 4% Other Basic $130 14% Utilities* $498 -1% Hospitals/Health Care* $336 55% Other Commercial $150 -19% Residential $277 -21% PUBLIC $2,455 -12% National Defense $635 15% Highways and Roads $629 -4% Airports, Ports, and $370 -15% Harbors Alaska Railroad $22 -15% Education $212 -48% Other Federal $255 -8% Other State and Local $322 -33% *Many projects in these categories are supported by public funds. Source: Institute of Social and Economic Research, UAA. Percent change based on revised 2016 estimates.

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ly growing demand with uncertainty about future supply. Because of the importance of petroleum to the Alaska economy, this uncertainty surrounding world oil (and gas) markets is a source of concern about the underlying strength of the economy in the future. The drop in oil prices was first reflected in a decline in employment in the oil patch, and then last year—as the decline in the oil patch accelerated—construction and state government employment also started to fall. This year employment is expected to be lower in almost all sectors and regions of the state. But the decline in construction activity will be somewhat less than it was last year, for several reasons. First, federal spending will be higher because of increased spending for national defense. Federal spending not related to defense, mostly consisting of grants to the state for transportation (roads, harbors, the railroad, and the ferry system) and sanitation projects, and to non-profits for health facilities and housing. It is not sensitive to the price of oil and tends to be stable from year to year. Second, although state government spending will be lower, particularly for education, there will still be state money on the street. The drop in oil prices has resulted in huge state general fund deficits since fiscal year 2014, and the capital budget—excluding federal grants—has fallen to less than $200 million in the last three years, down from more than $2 billion in 2013. But because it takes considerable time for appropriated funds to become cash on the street, there is still money in the pipeline—although less than last year. Third, private spending excluding oil and gas will be marginally higher, mostly due to construction related to health care. Strength in that sector will offset declines in residential and commercial construction, both of which will be lower because of the weakness in the overall economy and uncertainty about the state government’s ability to deal with the deficit. Fourth, the decline in activity in the oil patch will be less than last year. Reductions in spending last year brought the level close to a “bare minimum” to maintain production from existing fields. A large share of activity for developing new reserves in existing and new fields was postponed. But now, as the oil price is showing signs of some recovery, some of those postponed projects could be resumed. As in past years, some firms are reluctant to reveal their investment plans, because they don’t want to alert competitors; and, some have not completed their 2017 planning. Large projects often span two or more years, so estimating cash on the street in any year is always difficult—because the construction pipeline never flows in a completely predictable fashion. Tracing the path of federal spending coming into Alaska without double counting is also a challenge, and because of the complexity of the state capital budget, it is always difficult to follow all the flows of state money into the economy. We are confident in the overall pattern of the forecast—but as always, we can expect some surprises as the year progresses. 62

Privately Financed Construction Oil & Gas: $2,430 Million Construction spending related to oil and gas will be lower for the second year in a row, but the decline will be less than last year. Oil and gas is always a difficult sector to forecast, because plans can and do change, and because of many factors associated with weather, logistics, the availability of contractors and supplies, the evaluation of work completed, regulatory and environmental challenges, tax policy, and other operational and strategic concerns. This year is a particular challenge because of the uncertainty surrounding the price of oil. Consequently, many companies have announced a “wait and see” attitude about moving forward with development projects. The decline last year resulted from completion of a number of massive one-time projects on the North Slope, as well as the low price of oil. The large projects completed included Exxon’s development of the technically challenging Point Thomson field east of Prudhoe Bay, ConocoPhillips’ development of the CD-5 satellite west of the Colville River, and termination of Shell’s exploration program offshore in the Chukchi Sea in northwestern Alaska. The low oil price affected the producers’ cash flow, as well as the explorers’ ability to attract funds for capital expenditures. The prospect of the lower price continuing had a negative effect on the economics of investments to enhance production. The state government’s exploration-credit program was an important, but only partial, offset to the reduced ability of companies to continue their capital expenditure programs. As the new year begins the price of oil has rebounded from its low level of last year, and forecasts for the coming years are moving higher. At the same time, the low price of the last two years has driven costs down in the oil patch. As a result, activity is beginning to stabilize, and companies will begin to consider expanding their exploration and development programs as the year progresses. On the North Slope, in spite of cutbacks last year and continued operating losses, the major leaseholders—ConocoPhillips, British Petroleum, and Exxon—will continue to invest in the largest fields at Prudhoe Bay6 and Kuparuk,6 to slow their rates of decline. Some developments have been put on hold and efforts will concentrate on reducing costs. Among the major petroleum companies, only ConocoPhillips has announced that its 2017 capital budget will be about the same as last year. ConocoPhillips operates both Kuparuk and Alpine,6 including the new CD-5 satellite within the boundary of the National Petroleum Reserve Alaska (NPRA), west of the Colville River. In addition, it is developing the Greater Mooses Tooth (GMT-1) prospect in NPRA and expanding viscous oil production at Kuparuk with the North East 6 7

West Sak (NEWS) project. A second Greater Mooses Tooth prospect (GMT-2) is in the permitting stage. The Italian firm ENI (Enti Nazionale Idrocarburi) had postponed its two-year program of well drilling to bring the Nikaitchuq6 field into full production, but recently announced it will be resuming work there. Hilcorp will concentrate activity at Northstar, Milne Point,6 and Endicott. In addition, it is working on a plan for development of the Liberty prospect. Brooks Range Petroleum is moving forward to develop the Mustang field, west of Kuparuk, with financial assistance from AIDEA (Alaska Industrial Development and Export Authority). Caelus Energy has slowed work on both the Oooguruk 6 and Nuka fields. It has two more years of drilling for total build-out of Oooguruk, and is considering expansion of the offshore island from which the field is accessed. Other companies active on the North Slope include Arctic Slope Regional Corporation, AEA88, Great Bear, and Linc Petroleum. A number of other companies, including Chevron, Anadarko, and Nordaq, have interests in various fields on the North Slope but are not operators. Their expenditures are also included in the total. Three recent announcements of potentially significant new discoveries could bode well for an upswing in capital spending on the North Slope in the coming years, although it is too soon to know. All will require additional work to determine whether they are economically viable. If development were to proceed, any one of them could add 100 thousand barrels per day to production. Caelus Energy is exploring a prospect at Smith Bay, far to the west of the existing infrastructure on the North Slope. Armstrong (Repsol) is investigating a prospect in the Pikka Unit (Nanushuk), adjacent to the Colville River Unit. It faces some challenging geology. Most recently, ConocoPhillips announced the discovery of a potentially significant field (Willow) in the Greater Mooses Tooth Unit. In Cook Inlet, activity is more sensitive to the local price of natural gas for space heating and electric power than to oil prices, and the state—through its investment tax credit programs—has also provided a funding source for exploration spending. But because the local gas market is now in balance, and the investment tax credit program is uncertain moving forward, spending in Cook Inlet will be lower this year. Hilcorp will again be the dominant player as it continues to increase production from new production wells, repairs, workovers, and replacement of infrastructure. Blue Crest Energy, which purchased the assets of Buccaneer, continues to work on development of the Cosmopolitan field near Deep Creek, from an existing onshore pad. Furie is continuing to develop the Kitchen Lights offshore field, using a new monopod platform. It has plans for two new wells this year.

Bold-face type shows the current largest producing fields on the North Slope. Excluding exploration and development costs associated with environmental studies, community outreach, and engineering.

Alaska Business Monthly | March 2017www.akbizmag.com


Mining: $187 Million Spending by the mining industry—on exploration and development,7 as well as maintaining and upgrading existing mines—will be about the same as last year, thanks partially to a slight uptick in mineral prices. Spending by the six major mines currently in operation will be a bit higher than last year, as producers make new investments to increase efficiency and to develop new prospects for future production, to extend the life of the mines. Examples include a dry-stack tailing storage facility at Greens Creek and extensive exploratory drilling at Pogo and Kensington. Spending for drilling and other site work will be low again this year at the three worldscale mine projects currently under various stages of review for potential future development (Donlin Creek, Pebble, and Livengood). Numerous smaller projects across the state, such as the Nova Copper prospect in the western Brooks Ranges, are also seeing an uptick in activity.

project outside Juneau. When complete it will also include a district-heating project to provide space heating for that community. Phase 2 of the Fire Island wind project, offshore from Anchorage, will be underway as well. There also continue to be numerous smaller scale renewable energy projects across the state, with funding assistance through the Renewable Energy programs of the state and federal governments. No significant expenditures related to gas utilities are projected, as development of the gas distribution system for Fairbanks awaits final negotiations regarding a gas supply. Telecommunications spending will be lower this year due to uncertainties about the health of the economy and resolution of the state’s fiscal problems. Telecommunications

spending in Alaska benefits from funds generated by the Universal Service Funds, that channel revenues collected from services provided in other locations to help pay for needs in Alaska.

Hospitals & Health Care: $336 million The demand for health care continues to grow as the Alaska population ages, and with that comes growth in hospitals and other facilities. Spending this year will be considerably higher than last year, primarily due to federally funded facilities to provide services to the Alaska Native community. The largest project is the new Yukon Kuskokwim Health Corporation hospital and outpatient clinic in Bethel. Southcentral Foundation also has a large expansion underway,

Other Basic Industries: $130 Million Other basic industries—tourism, seafood, air cargo, and timber—will see higher spending this year. These industries benefit from lower oil prices because they are closely linked to the strength of the national economy. The higher spending will largely be the result of a multi-year Alaska Airlines program of investments to upgrade its facilities in Alaska. That program includes a new hangar in Anchorage and upgrades to terminal facilities at several other locations around the state. The number of tourists visiting the state continues to grow, and each year several new hotels are constructed in Anchorage and Fairbanks as well as in smaller communities. Although 2016 was the second difficult year for the inshore part of the seafood industry, several small capital projects have been announced for this year. Utilities: $498 Million8 Utility spending will be about the same as last year. Large cutbacks by the telecom industry will be offset by some growth in renewable electrical energy projects. A number of large-scale conventional electric generation plants were completed in recent years, and no new plants are under construction or planned for the next few years. Most electric utility spending will be for normal maintenance of facilities. Permitting was obtained last year for development of the Sweetwater hydroelectric Although we include utilities and hospitals/health care spending in private spending, there is also a significant amount of public spending for some projects in these categories. 8

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Other lease owners and operators in Cook Inlet—including the Municipality of Anchorage—will continue to spend on investments to optimize production. Elsewhere in the state, Doyon regional corporation will continue exploration work at its site near Nenana, and Ahtna regional corporation will also be looking for gas for the local market, at a site near Glennallen.


BUILDING ALASKA SPECIAL SECTION

including a children’s clinic in Anchorage and renovation of other facilities in Southcentral Alaska. The other regional Native hospitals will also continue to invest in facility upgrades. The Alaska Native Medical Center (ANMC) hospital campus in Anchorage will also likely see a couple of new buildings this year. Most other public and private hospitals continue to expand and renovate in response to growing demands. The largest such project this year will be on the Kenai Peninsula.

Other Commercial: $150 Million Commercial construction spending consists primarily of office buildings, banks, retail space, and warehousing.9 The level of spending from year to year can be influenced by a few projects, like large office buildings or shopping malls, as well as the current and projected health of the economy. At the start of 2017 vacancy rates in Anchorage, the largest commercial market, were continuing a slow upward trend that started last year. That is expected to continue as the economy continues to contract through the year. Still, vacancy rates are below national averages, and the commercial market should continue to be stable. But the contraction of the economy, combined with uncertainty about the state’s fiscal future, should slow the pace of new commercial construction again this year.

No new large retail or office projects have been announced. The largest single project is a new warehouse in south Anchorage.

Residential: $277 Million The residential market softened considerably last year, with new construction falling off throughout the state, except in the Matanuska-Susitna Borough (Mat-Su) where both employment and population continued to grow. That statewide trend toward softening will continue because of the continued economic decline and net outmigration of population with the exception of the Mat-Su Borough. Projects with public funding will be less sensitive to these economic trends. The age of the housing stock, and the aging of the population, are both also boosting residential spending. Because a large share of the stock was put in place 30 years ago, the demand for renovations is growing. And both the senior and millennial populations are growing, increasing the demand for smaller housing units. Publicly Financed Construction National Defense: $635 Million Defense spending will be up significantly for the second year in a row, as large projects get underway at Eielson, Fort Greely and Clear, buoyed by the largest military construction budget in any state.

The Corps of Engineers budget for MILCON (military spending for facilities on bases) at Eielson Air Force Base outside Fairbanks will be driven by large projects to get the base ready for the two F-35 squadrons that will be stationed there in 2020. These include a central heat and power plant and a dormitory. The first phase of a $1 billion expansion for missile defense at Fort Greely outside Fairbanks and Clear Air Force Station near Nenana will also be underway this year. This program will add 14 interceptor missiles to the defense system at Fort Greely over the next several years, and also add the Long Range Discrimination Radar at Clear. New aircraft hangars will be added at Joint Base Elmendorf Richardson in Anchorage. Spending on the civilian and other interagency programs of the Corps of Engineers will also be substantially higher than in past years. This spending typically funds Corps of Engineer projects for other federal agencies like NOAA, FAA, and the BLM, as well as projects done in cooperation with Alaska communities, in particular harbor improvements. The environmental program budget of the Corps of Engineers, including FUDS (Formerly Used Defense Sites), will be lower than in past years. This program includes cleanup of hazardous substances and contaminants at former defense sites, as well as on current Army and Air Force installations.

Our commercial construction figure is not comparable to the published value of commercial building permits reported by Anchorage and other communities. Municipal reports of the value of construction permits may include government-funded construction, which we capture elsewhere in this report. We have also excluded hospitals, utilities, and hotels from commercial construction, so we can provide more separate detail about those types of spending. 9

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gotten underway, and there will be no money to continue development of the Point MacKenzie rail extension for the port across from Anchorage, in the Mat-Su Borough. Spending from a combination of federal funding, state general funds, the transportation bond package, tourist-related fees, and local sources will be combined to underwrite port and harbor projects throughout the state, including significant activity at Skagway, Valdez, Juneau, and Haines.

Alaska Railroad: $22 Million The core capital construction program for modernizing and upgrading the Alaska Railroad will continue at a slightly lower level than last year. This is funded through

a combination of federal grants, cash flow, and revenue bonds. The railroad is waiting for funding from the state to move forward on the PTC (Positive Train Control) system, mandated by the federal government.

Education: $212 Million Because education capital spending comes mostly from state government, it will be much lower this year than in the past. Direct state funding of rural schools will be less this year, as the new schools mandated by the Kasayulie case head toward completion. A school at Nightmute is under construction and one at Kwethluk will be finished this year. Only the Kivalina school is still waiting to move forward. Funding for

Transportation—Airports, Ports, & Harbors: $370 Million Spending on airports also tends to be stable and predictable because federal funds, mainly from the Federal Aviation Administration’s AIP (Airport Improvement Program), provide the bulk of funding for airport improvements both at the large international airports in Anchorage and Fairbanks and the many smaller state-owned airports across Alaska. That funding is augmented by revenue bonds and other local sources. Spending on airport projects throughout the state in 2017 will be almost the same as last year. Spending related to ports and harbors will be slightly lower this year. Work on the redevelopment of the Port of Anchorage has not www.akbizmag.com

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Transportation—Highways and Roads: $629 Million Spending on highways and roads tends to be stable and predictable, and 2017 is no exception, with spending expected to be only slightly lower than last year. A majority of funding for highways (including the Marine Highway System) comes as grants from the federal government under a program known as the Fixing America’s Surface Transportation Act (FAST Act), which became law at the end of 2015. This program requires a state match for receipt of the federal funds. Some federal funds also go directly to Alaska Native tribal organizations for transportation projects. In addition, the state augments federal funds for highway and road construction with an annual capital appropriation to the Department of Transportation and Public Facilities. Also, in some years the state Department of Commerce, Community, and Economic Development (DCCED) disburses grants to local governments for road construction, but little has been appropriated for grants through DCCED since 2013. Finally, the state also periodically sells general obligation bonds to support road construction and other infrastructure projects. State-funded capital appropriations for transportation have been falling as the state budget has contracted. However, it takes considerable time for transportation appropriations to become cash on the street, so state funds from past capital budgets and bond sales are still contributing to current spending. The governor has recently proposed postponing several projects funded by past state appropriations and bonds, but these cutbacks will not significantly reduce the total amount spent this year. State funds will pay for major projects throughout the state, such as the Glenn Highway and Muldoon Road Interchange project in Anchorage, and reconstruction work on the Dalton, Parks, and Seward highways. Spending will also go toward upgrades of the Alaska State Ferry facilities. Local governments also spend on road construction and maintenance. Anchorage has a small bond issue for road construction each year, and other communities also bond for road improvements on a regular basis.


BUILDING ALASKA SPECIAL SECTION

partment of Commerce, Community, and Economic Development to local governments and non-profits throughout the state. But there have been no new appropriations to fund these grants in several years. The state budget also includes the ongoing state weatherization and home energy rebate programs, which have now been expanded to include commercial buildings. The budget also funds a modest amount of deferred maintenance spread across all state departments. Local government capital spending, from general funds and bonds as well as enterprise funds, direct federal grants, and foundations, tends to be stable from year to year. A large share of this spending is for water and sewer facilities, but it also includes other construction, such as buildings, libraries, museums, recreational facilities, and solid-waste facilities. As state grant funding for local projects has fallen off, there has been some increase in direct funding and bonding, but it has not been enough to make up for the loss of the state grants. © Danny Daniels

The Kuukpik Building in Anchorage, built by Criterion General, Inc.

new projects has not been included in the state capital budget. The legislature in 2015 imposed a five-year moratorium on the decades-old practice of reimbursing municipalities for a share of the debt they incurred to build new and repair existing schools. That change has more than doubled the price of new schools for urban school districts. This year the local school districts are using only the last of the funds from debt incurred before the moratorium, augmented by local funding to do renovation and repair work. The school that recently burned in Bethel may be replaced using funds from the insurance policy. The only new large University of Alaska construction project will be the power/heating plant on the Fairbanks campus, which will start construction this year. The new engineering building in Fairbanks will also be completed. Only small projects will be undertaken at the other campuses.

Other Federal: $255 Million Although the largest categories of federal construction spending in Alaska are for transportation and national defense projects, there are several other sources of federal spending that contribute to construction spending. The largest of these are a series of grants that support housing and safe-water programs in the state—and because these grants have been stable over the years, other federal spending has tended to be constant from year to year. It will be marginally lower this year. Most of the funding for the state-administered Village Safe Water program for rural sanitation comes from federal sources, including the Environmental Protection Agency and the Indian Health Service. With the state contribution, that spending is expected 10

to be constant this year. Other types of federal grants to the state funds buildings like armories and veterans’ facilities. The federal government also provides construction grants to Alaska tribes, non-profit organizations, and local governments across the state.10 Alaska Native non-profit corporations, housing authorities, and health-care providers receive most of this money. The largest of these programs in Alaska is NAHASDA (the Native American Housing Assistance and Self-Determination Act), which provides assistance for housing construction in Alaska Native communities, through grants to federally recognized tribes and Alaska Native housing authorities statewide. Some of these funds are funneled through the Denali Commission—a federal-state partnership Congress created in 1998 to more efficiently direct federal capital spending to rural infrastructure needs. But the commission’s current budget is quite modest. Direct procurement by federal agencies like the Department of the Interior (National Park Service, U.S. Fish and Wildlife Service, and Bureau of Land Management), the Postal Service, the Department of Agriculture, and NOAA (the National Oceanic and Atmospheric Administration) also provides funding for construction each year. Finally, a small share of federal grants (as well as loans) go directly to local governments or other entities like utilities.

Other State & Local: $322 Million State and local government capital spending—excluding transportation (roads, ferries, airports, and ports), education, health, and energy—will be down considerably this year, because of less state money. When state capital budgets were large, many projects were funded through grants from the De-

What’s Driving Spending? The three primary drivers of construction spending are private basic sector investment (mainly petroleum and mining), federal spending (military and grants to state and local governments and non-profit organizations), and state capital spending (which ultimately depends on petroleum revenues), through the general fund and bond sales. These large external sources of construction funds also give a general boost to the economy—and thus add to the aggregate demand for new residential, commercial, and private infrastructure spending. Construction In The Overall Economy Construction spending is one of the important contributors to overall economic activity in Alaska. Annual wage and salary employment in the construction industry in 2016 was about 16.2 thousand workers, with average annual pay of $82 thousand, second only to mining (including petroleum). But that figure doesn’t include the “hidden” construction workers employed in other industries like oil and gas, mining, utilities, and government (force-account workers). In addition, it does not account for the large number of selfemployed construction workers—estimated to be about 9 thousand in 2011. Construction spending generates activity in many other industries that supply inputs to the construction process. These “backward linkages” include, for example, sand and gravel purchases (mining), equipment purchases and leasing (wholesale trade), design and administration (business services), and construction finance and management (finance). The payrolls and profits from this construction activity support businesses in every community in the state. As this income is spent and circulates through local economies, it generates jobs in businesses as diverse as restaurants, dentist’s offices, and furniture stores. R

Federal spending on health-care projects for the Alaska Native community, funneled to Alaska Native organizations, is included in the Hospital/Health Care section of this report.

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Building Alaska

Photo courtesy of YKHC

YKHC President and CEO Dan Winkelman, far right, and Arcadis Senior Project Manager Kent Crandall listen to an elder in Shageluk, a community northeast of Bethel on the Innoko River. Winkelman and Crandall were participating in the men’s circle at a Cultural Visit last May. Shageluk was one of several communities the YKHC leadership and design team traveled to so they could discuss the project and understand important cultural practices that would inform design.

Dr. Paul John Calricaraq Project Underway in Bethel Combining culture and innovation for the healthiest people By Susan Harrington

T

he last barge to Bethel up the Kuskokwim River brought pilings and thermocouples for one of the biggest construction projects in Alaska last fall, and the first barge this spring will bring the steel that was ordered in December. The $300-plus million Dr. Paul John Calricaraq Project (PJCP) consists of a new clinic and renovation of the Yukon Kuskokwim Health Corporation (YKHC) hospital and will improve the health of regional residents in innovative and ground-breaking ways. In fact, the entire project, from inception to financing 68

to design and engineering, is innovative and ground breaking. The project itself is named after visionary elder Dr. Paul John. According to project documents, “YKHC President and CEO Dan Winkelman mandated the inclusive cultural identity and values for the project.” Winkelman said: “It will be more than just a new building. We are merging Paul John’s inspirational teachings and stories of traditional ways of healthy living with national best practice models to provide healthcare services more efficiently and a customer-centered approach … that incorporates the region’s Yup’ik, Cup’ik, and Athabascan cultures.” A wide cross-section of people representing YKHC, including Winkelman, the Executive Board, staff, and customers determined the project’s scope and direction in line with the YKHC mission: “Working together to achieve excellent health.”

Chairman of the YKHC Board of Directors Esai Twitchell Jr. says, “The PJCP is a much needed project for our region, as we have outgrown the existing facility and it has limited our ability to provide quality care for our people. This project will have a tremendous impact and will change the way we provide service to our people. “ The project team, including the architectural firms Bettisworth North, ZGF, and Jones & Jones, worked with the YKHC group as well as area residents to develop a cultural design for the project that embodies Calricaraq and thousands of years of Yup’ik, Cup’ik, and Athabascan cultural identity and values.

Calricaraq Calricaraq is a concept adopted by YukonKuskokwim elders and the YKHC Preventative Services Department in 2012 and is the guiding principal of the project and its design.

Alaska Business Monthly | March 2017www.akbizmag.com


Rendering courtesy of Bettisworth North

The Paul John Calricaraq Clinic at night.

lion yearly payroll with 240,000 annual patient visits. It is anticipated the new facilities will create 200 to 400 new positions. Demographics for regional Yup’ik and Cup’ik include a high birth rate of 11.257 per capita, with 46 percent of the population under the age of eighteen. YKHC is creating healthcare facilities that will serve the population through the next fifty years based on the concept of Calricaraq with an enduring design. The Yukon-Kuskokwim region has a high rate of unemployment, which typically fluctuates from 17 percent to 25 percent. The five leading causes of death are cancer, heart disease, unintentional injuries, suicide,

and chronic lung disease. Of Alaska’s 4,000 households without proper water and sewer that rely on honey buckets, half are in this region—2,000 homes. Multi-generational households in small houses are typical. The Paul John Calricaraq Project is a journey to high reliability with vivid visioning for the tribes, employees, and patients and their families. The LEAN production system was selected and prioritizes core culture and identity, promoting customer-centered care, and an affordable and sustainable budget. The new clinic and the hospital renovations are designed to fulfill the YKHC vision: “Through Native self-determination

Partners throughout the construction lifecycle Arcadis is honored to be serving as the Project Manager for the Yukon-Kuskokwim Health Corporation’s Dr. Paul John Calricaraq Project. Blending traditional healing with the latest technology, this new health clinic and renovated hospital will greatly improve healthcare services for the residents of Bethel and the 58 villages in the region for generations to come. Arcadis. Improving quality of life.

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Cultural design workshop at interior village of Shageluk >

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According to project documents, Calricaraq is “a foundation based on the belief that there are important teachings and lessons that each person must learn to become strong and healthy … Genuine Yup’ik/Cup’ik teachings, values, and traditions are applied throughout the early child and adulthood developmental stages to live a healthy and balanced life. … To be productive members of a community, knowledge is instilled through healthy parenting, family, and most importantly, by elders who are skilled and knowledgeable in Yup’ik/Cup’ik ways. Collectively, these traditional responsibilities play important roles in emphasizing a healthy people, beginning at conception into adulthood and continuing through eldership.” YKHC is responsible for the health and wellbeing of some 30,000 Alaska Natives from fifty-eight tribes in more than fifty villages in the Yukon-Kuskokwim Delta and upriver. There are forty-one small village clinics and five larger sub-regional midlevel clinics with a higher level of care that includes lab, diagnostic imaging, and dentists. Community health aides staff the clinics through the Community Health Aide Program, better known as CHAP. In addition to the clinics, YKHC has its flagship regional hospital in Bethel. Healthcare needs have grown exponentially over the years. In 1990, YKHC had 220 employees with a $6 million yearly payroll with 50,000 annual patient visits. In 2016, there were 1,300 employees with a $75 mil-


BUILDING ALASKA SPECIAL SECTION

Photo courtesy of YKHC

The Dr. Paul John Calricaraq Project site in Bethel on the Yukon-Kuskokwim Health Corporation campus.

and culturally relevant health systems we strive to be the healthiest people.”

Financing The ability for YKHC to finance the $300plus million project was made possible through federal and state legislation and joint venture cooperative agreements. In 2015, US Senator Lisa Murkowski and US Senator Dan Sullivan sponsored Senate Bill 230 and US Representative Don Young sponsored House Resolution 521, which transferred ownership of the hospital from the Indian Health Service (IHS) to the YKHC. The Alaska delegation’s legislation passed and was signed into law by then President Barack Obama. Also in 2015, Alaska State Senator Lyman Hoffman sponsored Senate Bill 46 and Alaska State Representative Bob Herron sponsored companion House Bill 101, which authorized regional health organizations access to up to $205 million in low interest bonds through the Alaska Municipal Bond Bank Authority. Both bills passed and were signed into law by Governor Bill Walker. Currently, YKHC is in the process of securing $102.5 million from the Alaska Municipal Bond Bank Authority in long-term financing. Later in 2015, the US Department of Agriculture Rural Development agency committed $165 million in a low interest loan to YKHC for long-term financing of the project at a fixed interest rate of 3.625 percent. The money will be loaned after construction is complete and is the largest Community Facili70

ty loan ever made by the agency for any project in the United States. Former USDA Rural Development Alaska Director Jim Nordlund was instrumental in obtaining the commitment. In March 2016, a Joint Venture Agreement was signed by YKHC and IHS to provide more staffing to meet the healthcare needs of regional residents. This agreement is expected to more than double the amount of money IHS provides to YKHC for staffing and operations by 2025. As a result of all the legislation and agreements, YKHC is able to expand and renovate its facilities and build new staff housing in Bethel to accommodate the need for increased services. Short-term financing for construction is being provided by investment house Raymond James.

The Project The project is a renovation of the existing 105,000-square-foot hospital and new construction of a three-story, 175,000-square-foot clinic. A fifty-four unit apartment building will also be built on the YKHC’s twenty-three acre site in Bethel for employee housing. Construction of the clinic began last fall with site work, installing thermocouples, and pile driving. Structural steel erection for the clinic will commence this spring once the first barges bring those materials into Bethel. In addition to Bettisworth North, ZGF, and Jones & Jones, the construction team includes ARCADIS, project manager; CRW Engineering Group, LLC, civil engineer; RSA Engineering, Inc., mechanical and electric; BBFM Engineers,

Inc., structural; and JV ASKW/Davis, general contractor. Bethel Services Inc., a subsidiary of Bethel Native Corporation, was selected as the Design-Build contractor for the YKHC Staff Housing, and they are working with architects Livingstone Sloane. The fifty-four unit staff housing complex is expected to be completed in October this year and was required by IHS to support the larger project. There is a sense of urgency for the big project, and YKHC has been fast-tracking the design, construction, and pile driving in order to finish as soon as possible. They did not want to add another year to the timeline, so last fall they forward-funded the project and spent a few million dollars to bid out the pilings and get them shipped out of Seattle before the last barge. They bought land adjacent to the site to stage construction equipment and materials. They purchased a used man camp built of ATCO trailers to house the construction workers and brought it to the site. Gravel mined upriver is being used for the construction, a logistical advantage for compressing activities that have to take place during the short shipping season. Pile driving commenced last fall. There is no bedrock in Bethel and the piles were driven fifty-five feet into ice and allowed to freeze back all winter. As for worries about the ice melting, there is no danger in that happening for at least the next fifty years, according to the arctic engineering that went into the project. Thermocouples were installed along with the pilings and will keep an eye on temperature fluctuations.

Alaska Business Monthly | March 2017www.akbizmag.com


Photo by Susan Harrington for ABM

Structural steel erection is scheduled to begin this spring and be completed by the end of the year. The building enclosure is slated for completion by the end of the first quarter next year. The building interior work is expected to take two years, starting at the beginning of next year with completion expected by the end of 2019 for all three floors. Completion and occupancy of the first two floors of the clinic is expected by the end of June 2019. Hospital renovations will begin mid-year 2019, with completion scheduled by the end of June 2021. The project will meet LEED silver status and IHS sustainability requirements. Hospital renovations include a partial demolition and total consolidation of outpatient and inpatient services to meet four goals of care. One, it provides a single place for patients and families to go for care. Two, it simplifies patient access with a north inpatient and outpatient portal and a south emergency services portal. Three, with everything together, the integrated Patient Care model is supported for holistic medical, behavioral, and social work treatment. Four, everything reflects and reinforces regional cultural values and traditions and that encourages holiswww.akbizmag.com

tic health and well-being. The preliminary concept design listed the hospital renovation as a way to “continue to provide inpatient care, including emergency, diagnostic imaging, and surgery; behavioral health clinic decision unit located adjacent to emergency with overnight stay capability; provide logical connections between services; allow for logical renovation phasing and minimize number of relocations during renovation; clear wayfinding routes including link to new clinic building; and enhance patient experience and replace aged building systems.” The multi-year project will employ hundreds of workers across multiple trades and specialties.

Integrating Culture Winkelman told the entire team, “Integrate culture into the whole project,” and that is what they’ve done, using cultural elements of the four worlds—human, natural, animal, and spirit— throughout the interior and exterior design; layout and flow of rooms and offices; lighting, windows, and doors; placement of art; finishes used on floors, walls, and ceilings; and every other aspect of the buildings and grounds.

Susan Harrington is the Alaska Business Monthly Managing Editor.

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Close-up of two piles and a thermocouple at the YKHC project site in November 2016.

The new three-story clinic includes outpatient services on the first two floors and inpatient hospital expansion integration on the third floor. Dental care, rehabilitation services, laboratory, pharmacy, wellness center, patient financial services, and behavioral health will go on the first floor. Half a dozen spaces for primary care, specialty care, and behavioral health are designated for the second floor along with diagnostic imaging, education and group consulting space, and an employee area. Acute care, labor and delivery, surgery C-section, eye care, respiratory therapy, audiology, and infusion are planned for the third floor, which consolidates inpatient and outpatient care. The entrance to the clinic will be a gathering space and use the qasgiq, or traditional men’s house, as a cultural reference with a traditional roof and ceiling structure. It will include a cultural items display case with the fifty-eight tribes of the region and a craft selling table area on one side and cafeteria dining and table seating area on the other side. Comfortable seating groups with places for children and places for elders will take up part of the space in the center. The gathering space will include a glass screen behind an area for a speaker and stage. Each floor will have a theme that includes cultural elements for upriver, delta, and the coast from the four worlds, including water (first floor), land (second floor), and air (third floor). Natural light via high windows and translucent walls will be used throughout the clinic. Also, this will not be a museum or a sterile-looking healthcare facility. Artwork will be abundant throughout, with high wall photo panels of intergenerational images, regional landscapes and ancestors, landscape and subsistence, inspiration from creative people, healing power elements, air and birds, animals, fans, masks, drums, and the sea. Many cultural elements from the four worlds will flow throughout— guiding people on a healing journey. The entire project, from conception to construction is another journey that’s well on its way. “After getting our company in the black a year prior, partnering with the Indian Health Service to enter into a successful joint venture agreement, working with the Legislature to allow tribal health organizations access to Alaska’s Municipal Bond Bank and then Congress to transfer ownership of the hospital from the IHS to YKHC, I and my senior leaders then assembled a team of about fifty to work on the project itself,” Winkelman says. “Everyone’s enthusiasm for the project was overwhelming. We worked on project management, population and economic forecasting, architecture, engineering, and public and private financing. Everyone came to the realization that, like our customers, this project was special and would greatly improve the lives of the thirty thousand people in the YK Delta for the next fifty years! To be a small part of that team is a dream come true. After all, it’s not every day you get to build a new hospital and increase its staffing.” R


SPECIAL SECTION

Building Alaska

Introduction to Trades Program in Fifth Year

Teaching basic skills to become an electrician, welder, or construction worker

W

hen Chad Hutchinson graduated from high school in 1988, he had life all figured out. He would be a heavy equipment operator in a union apprenticeship program, work up to a journeyman position, and have a rewarding, well-paying career. It didn’t work out quite the way he had planned. “I was super-smart. Knew everything. Didn’t need any help from anybody,” Hutchinson told a group of Fairbanks high school students and parents on a frigid Monday evening in early January. “Well, when I graduated high school, I found out they look at attendance records. And I found out they look at grades and you get scored off that.” 72

By Julie Stricker Hutchinson didn’t make the cut. In fact, it took four tries before he was finally accepted into a union apprenticeship. He wants to make sure today’s students don’t fall into the same trap, he says.

Phenomenal Opportunities “The opportunities you guys have in front of you right now are phenomenal,” Hutchinson says. “We didn’t have these opportunities when we went to school.” One such opportunity is a partnership between the Fairbanks school district, local unions, and the Fairbanks Pipeline Training Center, of which Hutchinson is executive director.

The Introduction to Trades class teaches students the basic skills and techniques to become an electrician, welder, or construction worker, says Daniel Domke, Career and Technical Education director for the Fairbanks North Star School District. It’s a competitive program; only forty students are accepted, but it’s an opportunity to get a head start on a career in the trades.

Jumping-Off Point The program is in its fifth year and is a jumping-off point for the more rigorous School to Apprenticeship program, a gateway to union membership and a lifelong, well-paying career, Domke says. Last year, eleven students

Alaska Business Monthly | March 2017www.akbizmag.com


BUILDING ALASKA SPECIAL SECTION

Orientation in early January for the semester-long Introduction to Trades course, a partnership between the Fairbanks North Star School District, local unions, and the Pipeline Training Center. Photo by Mary Beth Alison

were chosen by the unions to go directly from the Introduction to Trades classes to the School to Apprenticeship program. That several of the students in the room in early January had already turned in School to Apprenticeship applications, as well as signing up for the introductory class, “speaks very highly of your initiative and shows the direction that you’re serious about going,” Domke says. “It takes commitment. It takes dedication,” Domke told students, noting that many of them would be giving up sports and other extracurricular interests their last semester in high school. “The outcome is this: You’re going to get a real-world look at some realworld occupations.” In the Introduction to Trades classes, students meet two days per week for two hours www.akbizmag.com

per session after school all semester. The program is open to seniors who have completed math or algebra and reading classes with grades of C and above, although juniors may also apply. “It’s a springboard from high school into that post-secondary world of work,” Domke says.

Fairbanks Advantage Fairbanks students considering going into the trades have several advantages over students in other areas, he says. First, the classes are held in the Fairbanks Pipeline Training Center, a multi-million dollar development that includes seven state-of-the art facilities that provide training to meet the demands of Alaska’s oil and gas industries. The faciliMarch 2017 | Alaska Business Monthly

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High school students attending the Local 375 Plumbers & Pipefitters 72-Hour Welding Course. Instructors are Brian Quackenbush and Pete Daley.

ties are located on a sixty-six-acre campus in south Fairbanks. More than 2,300 people go through the center annually, says Hutchinson, the executive director. It serves as a joint training facility for the plumbers and pipefitters, operators, teamsters, and labor unions. “This is the only place in the nation that you have four different crafts come together with this kind of training,” Hutchinson says. Workers take classes to improve their skills or complete health and safety requirements. A company working on the North Slope will often do pre-job work, such as hiring workers and going over the work plans at the center, before they head north. It is overseen by the Fairbanks Pipeline Training Center Trust board of directors, a nonprofit labor-management trust organized for educational purposes under IRS Section 501(c)(3). The Alaska Department of Labor and Workforce Development recognizes it as a Regional Training Center.

Life-Changing Semester For the students in the meeting room in January, the semester-long classes in welding, construction, and electrical trades not only get a leg up for a School to Apprenticeship program, the classes also count as high school credit. Three trade unions are involved with the program: Plumbers & Pipefitters, International Brotherhood of Electrical Workers (IBEW), and the Carpenters Union. “Consider this a semester-long job interview,” Domke says. Students will be working with the people in the unions who will have a say in who gets accepted to the School to Apprenticeship program. “So approach this with all the seriousness 74

of something you’re going to approach that really could potentially be life-changing,” Domke says. There is no tolerance for alcohol or drugs, he adds. “If you start to play in this arena, you will be required to take and pass a drug test. Look at the calendar; you’ve got three or four months before that is going to be you. A lot of teenagers in here, but take that to heart. That is one test that they will not allow you retake.” Right now is a good time for students to learn basic carpentry, electrical, and welding trades, Domke says, pointing to the $325 million set for a new power plant and missile detection radar system at Clear Air Force State over the next six years. Another $533 million is planned to accommodate the addition of two squadrons of F-35 fighters at Eielson Air Force Base in 2020.

Lucrative Careers All the classes are designed to teach students the basics. It also exposes them to people in other trades and gives them an opportunity to ask questions and try new skills. The Introduction to Electrical Trades program gives students an overview of electrical installations they might see in a typical home, as well as a glimpse into a lucrative career, says instructor Wendell Whistler. “If you’re serious about a career in trades, you’re in the right place,” Whistler says. A student who starts in the program at age eighteen can retire in forty years with a $9,000 per month retirement package, Whistler says. But today, the students should be aiming to get one of the School to Apprenticeship spots.

Alaska Business Monthly | March 2017www.akbizmag.com


That is “your Willy Wonka golden ticket,” he says. “Getting accepted to the [Schools to Apprenticeship] is like a $50,000 scholarship.” The opportunity is there, but it will take hard work, all the speakers emphasize. Hutchinson says, “I believe it’s harder to get into an apprenticeship and stay in an apprenticeship than it is to go to college,” he says. College students can skip classes, they can get a DUI, lose their license, and still graduate from college. But for an apprenticeship, students have to pass a drug test and show up every day. If they get a DUI, they’re out. “A lot of people don’t realize what it takes to get into one of the programs,” he says. Students in the Introduction to Building Trades program will cover a variety of subjects, with a “pretty heavy emphasis on carpentry,” says Wade Starke, a trades instructor at the Fairbanks Pipeline Training Center. Students may also cover workplace safety, forklift, and scissor-lift training. They will learn to build stairs and do basic wood framing. “We’ll do a lot of basic tool safety,” Whistler says. “Safety is our main emphasis. You’ll learn some basic skills and then we’ll go into some more advanced skills. It’s to kind of give you a taste of things and some of the certifications you can use in any trade.”

The Real World John Plutt is leading the welding portion, which will give students seventy-two hours of practical welding instruction over the course of the semester. Plutt, president and training director of Fairbanks’ United Association Plumbers and Steamfitters Union Local 375, says students will benefit from inwww.akbizmag.com

Julie Stricker is a journalist living near Fairbanks.

Celebrating 40 years of Excellence!

Photo by Mary Beth Alison

lines. It requires the students to put in some hard work. “We’re trying to prepare you students for the real world,” Plutt says. “What I mean is not only a job when you graduate in May, but a career.” “There are some caveats to that,” he adds. “You have to show up, every day, on time. If you can’t go to class, it’s very important that you let your instructors know. With seventytwo hours, there’s not a lot of time that can be wasted. So take advantage of that. Don’t waste it.” R

6591 A Street, Suite 300 Anchorage, AK 99518 Phone 907-562-2336 Fax 907-561-3620

www.davisconstructors.com

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structors with more than sixty years of pipeline welding experience, dating back to work on the trans-Alaska oil pipeline he says. “We’re trying to prepare you students for the real world,” Plutt says. “The instructors you’re going to be working with are going to see your attendance, going to see your desire. Then they’re going to report to their appropriate people.” While the training is specifically geared to Alaska’s needs, he says, “Wherever you go, it’s going to follow you. This is instruction you’re not going to find anywhere else in the country.” And while everyone in welding wants to work on a pipeline, Plutt says, it’s a long progression from beginning welding to pipe-


SPECIAL SECTION

Building Alaska

John Eng A cornerstone of the construction industry By Shehla Anjum

M

ost contractors pay attention to the details of impending work and evaluate specifics in advance, but few crawl

around a job site on a blustery New Year’s Day to figure out a problem months before the startup date. An exception is C. John Eng, who says projects often occupied his mind long before the work commenced. Eng, a former owner of the Anchorage construction firm Cornerstone General Contractors, remembers an occasion from the mid-1970s when he was with Kiewit in Omaha, Nebraska, working on a retrofit of an existing Kellogg cereal plant. 76

Photos Š Judy Patrick Photography Alaska Business Monthly | March 2017www.akbizmag.com


“At the time, I beat myself up a bit for not being more thorough, but later an acquaintance put it in perspective and pointed out that I had realized the situation six months before the project start on the 4th of July.”

BUILDING ALASKA

“On New Year’s Eve I suddenly woke up and realized I had not done a complete comparison to make sure that the openings in the steel roof structure matched the ductwork that penetrated the roof from the rooftop heating and cooling units,” he says.

Alaskan Products for Alaskan Projects

—John Eng

New Year’s Day saw Eng braving snow, ice, and -20 F weather, sliding beneath the equipment, checking the ductwork, and comparing the drawings. Except for one location everything matched. But, says Eng, “At the time, I beat myself up a bit for not being more thorough, but later an acquaintance put it in perspective and pointed out that I had realized the situation six months before the project start on the 4th of July.”

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Early Career Days Eng, sixty-nine, co-owner of Cornerstone for twenty years before selling his share in the company, grew up in Waco, Nebraska, a small town of less than three hundred about forty miles from Lincoln, the state capital. After high school he studied construction management, a new field of study then, at the University of Nebraska in Lincoln and graduated with a Bachelor of Science in 1970. After college, Eng went to work for Omaha-based national contractor Kiewit, then known as Peter Kiewit Sons’ Inc. Eng had some prior experience in construction from working for his father, who owned a lumberyard and a small contracting firm. Kiewit moved Eng to Seattle to serve as a project engineer and an estimator on a highway bridge. Two years later the company sent him to a ballistic missile base in Montana, but that turned out to be a short-lived assignment because President Richard M. Nixon negotiated the Anti-Ballistic Missile treaty with the then-USSR. Kiewit transferred Eng back to Omaha and later to Casper, Wyoming, where he worked on a large events center. After a decade with Kiewit, Eng decided it was time to find a new direction. Those years at Kiewit were valuable, Eng says. “I worked at the building group and became experienced www.akbizmag.com

March 2017 | Alaska Business Monthly

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in estimating and negotiating. I learned a lot about good management techniques.” The desire for new experiences led Eng to Alaska in 1980. His fascination with the state began long before that—in third grade— when he had an assignment to put together a book on Alaska, including a short history. His experience with Kiewit helped him obtain work with Coffman White Engineers, a Washington-based construction management company. He worked later for Howard S. Wright and Strand Inc., two Seattle-based construction companies with operations in Alaska. He stayed with Strand for eight years, leaving in 1993. Once again, Eng was ready for something else.

Cornerstone Construction Mark Palmatier, a former partner at Cornerstone, has known Eng since 1992. He remembers why Eng decided to form a new company. “John likes to think outside the bubble and had a vision of building a high quality construction company. He attracted bright people and succeeded.” Cornerstone was incorporated in fall 1993 and was submitting bids on jobs by spring 1994. It soon received its first contract, valued at $4 million, from the US Army Corps of Engineers to build an addition to the US Air Force headquarters building at Elmendorf Air Force Base. That first contract marked the beginning of a long relationship with the Corps and more work on military projects, Eng says. The work included hangars at Elmendorf, barracks at Elmendorf and Fort Richardson, and hangar renovations for the Coast Guard in Kodiak. It helped that Cornerstone was a local company and its owners and personnel were familiar with the state and its special challenges. Cornerstone’s success can be attributed, at least in part, to Eng’s constant curiosity about many things, including new trends in construction and ways to take advantage of them and to grow the company. He kept up with developments in business and construction by extensive reading and by attending industry conventions and seminars. Eng says he reads between forty and fifty books a year and his interests involve business, leadership, science, economics, and historical fiction. In the early 1990s Eng went to the World of Concrete convention in Las Vegas. “It was a big event with about thirty thousand and offered many seminars. One talked about coming trends in construction, noting that demographic shifts indicated new areas where the industry would find good opportunities. He mentioned the need for more medical facilities because of the aging population,” Eng says. It was a key moment in his career. “After the seminar I did some research and then I went and talked with Providence Hospital,” Eng says. The seminar speaker’s prediction was correct and the timing was right. Providence Alaska Medical Center was about to embark on an expansion of its campus. Developing Expertise In the following years Cornerstone secured several projects and developed expertise in

Alaska Business Monthly | March 2017www.akbizmag.com


BUILDING ALASKA SPECIAL SECTION

“I was fortunate to be part of the leadership of Cornerstone when we worked on projects for the University of Alaska, Providence Alaska Medical, Alaska Pacific University, and the Alaska Native Health Consortium.”

—John Eng

medical facilities. That competency acquired in that field helped the company when it jointventured with Kiewit on the construction of the new VA Hospital, a $75 million job, according to Rick Boots, the controller at Cornerstone. The expansion at Providence coincided with construction of new facilities at the University of Alaska Anchorage. The area around the two institutions came to be known as the U-Med District. In the following years Cornerstone’s name appeared on the signboards of many big projects in the area, including the Alaska Native Medical Center. By the time Eng sold his share of Cornerstone in 2013, the company had completed approximately $400 million in projects in the U-Med district. “I was fortunate to be part of the leadership of Cornerstone when we worked on projects for the University of Alaska, Providence Alaska Medical, Alaska Pacific University, and the Alaska Native Health Consortium,” Eng says. Another factor that shaped Cornerstone’s success was its ability to complete projects without cost overruns. “I have never known us to have a project that did not come in within the budget,” Palmatier notes. It is also unusual that the company did “hundreds of millions of dollars’ worth of work around Anchorage and never had to go for litigation in a court on any project,” Palmatier says. Eng’s personality and his attention to the needs of his customers helped cement the company’s relationships with clients, says Mike Quirk, a vice president at Cornerstone and one of its two current shareholders. “John is a congenial person. He is well informed and able to talk with anyone on any subject. He was in the pulse of things and was able to find out about projects well in advance,” Quirk says. Quirk praises Eng for being “a good leader” who “had a knack for figuring where to head with the company, and how to get there.” And, says Quirk, Eng was “integral” in getting work for Cornerstone, noting how Providence, for one, does not “seek proposals from just any company. You have to be on their list of approved contractors.” The facilities built by Cornerstone that define the current U-Med district include the Alaska Airlines Sports Arena, Consortium Library, ConocoPhillips Science Building, the Health Sciences Building, dormitories, and food services facilities. At Providence the company built the North Tower with www.akbizmag.com

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emergency facilities, the Children’s Hospital, and the power plant, as well as numerous other projects. “It seemed like it was our part of town at the time,” Eng says of those years.

Overcoming Challenges Sometime the jobs came with special challenges, but Cornerstone was able to overcome those. The construction of any building involves levels of difficulties. However, erecting one from the ground up is comparatively straightforward compared to creating a new facility within an existing building, especially a fully operating hospital. That is especially demanding. But Cornerstone became adept at hospital work and Eng is proud the work was done without any disruption to patients, who continued to use the hospital. “Except for the north tower and power plant at Providence, which were additions outside the main building, all our work was done inside. The hospital functioned normally and never closed for any of our projects and to my knowledge no one got sick because of any construction related problems,” Eng says. The reason for the success in the hospital work lay in Eng’s ability to listen to his customer and to figure out techniques that minimized potential health problems, especially those created from dust in the work area. “We maintained a negative air pressure in all of our work areas to prevent any air from

On complicated projects there is always a chance of something going bad or someone getting hurt. But Cornerstone avoided that, says Eng. “We had a very good safety record. I was always happy that all our workers went home safe and no one got killed, we had a very low incidence of reportables and lost time accidents during all those years of major construction.”

Moving On When Eng created Cornerstone with Jaysen Mathiesen he set himself a goal of moving on in twenty years. And he did. After selling his shares in the company he stayed on for another two years, until December 2015. The departure from Cornerstone does not mean that Eng has moved away from construction. “I continue to enjoy business, and remain active in the construction industry, as well as devoting time and other resources to a variety of other business investments,” he says. More recently Eng and his wife, Lynn Ann, began a new endeavor—they founded High Point Construction, a company licensed in South Dakota and Alaska. Eng says he “still has a desire and motivation to help customers with construction and organization needs.” The new corporation’s formation follows the start of a new project on a subdivision in Hot Springs, South Dakota. The scale is smaller than his past work, however. “It’s a new subdivision called Mount Gypsum, and

ly, throughout the United States and abroad. They travel both for pleasure and to attend shareholder meetings of the corporations in which the Engs have investments. Philanthropic work, including the Alaska Sudan Medical Project, also keeps Eng busy. He holds fundraisers for it and donates to that and other charities. The urge to help goes back to childhood. “My parents expected us to help others, if not with money then with actions.” He fondly recalls one unique experience in helping people that came when he worked for Kiewit in Omaha in the 1970s. “I donated my time to read newspapers and business magazines on the Radio Talking Books program for blind people.” He did that for a year, until his transfer to Casper, Wyoming. He still remembers how a sign on the studio wall reminded volunteers not to forget to read Ann Landers, the advice columnist. “If we forgot to read her column we would get phone calls from people complaining.” Eng believes in education and says it is important to encourage young people and give them a chance to attend school. “Each of us can probably recall being encouraged by a sibling, parent, relative, teacher, neighbor, or others that were the catalyst to helping us make a decision to take our life in a positive direction. When each person decides to encourage another person, lives can be changed for the better,” he says.

“Sometime when you have a big challenge in business, and finances are challenged, then people get creative. They face up to it and make the right decisions to achieve a sustainable turnaround.”

—John Eng

infiltrating the hospital. We also kept a close watch on stagnant water.” One Cornerstone project that Eng is most proud of, and one of the most challenging, was the Children’s Hospital at Providence, which opened in 1998. That pride is justified, says Collin Szymanski, president and owner of Mantech Mechanical Inc., an Anchorage plumbing and heating company that worked with Cornerstone. “The Children’s Hospital was a big, complicated project and it took a lot of coordination.” The Children’s Hospital was created on an existing floor of the hospital. “We had to gut and remake a floor between two floors. Below us was a fully functioning operating area, and above us were patients’ room with medical equipment, but we managed to get work done without causing any disruption. It was one of the toughest projects in my career,” Szymanski says. In a difficult job such as the Children’s Hospital friction can result between different parties. When that happened people turned to Eng, according Szymanski. “John was the ‘go-to guy.’ He was above his superintendent and we could call him and voice our concerns. John understood, and he might not sympathize every time, but he could rationalize and made necessary adjustments needed to resolve a problem. He was accommodating to our needs within the extent possible,” Szymanski says. 80

it is only six acres on which I will plan to build seven homes for professionals in the area.” Eng says he chose to begin his next work in South Dakota because of his deep connections with the state. He speaks fondly of his younger days when he spent summers on his grandfather’s ranch near Hot Springs. From his grandfather, who immigrated from Norway at age seventeen in 1910, Eng learned not only values that have guided him but also how to count, a critical skill in business. “When I was three or four, my grandfather drove me around his hay fields in his jeep and made me add up all the haystacks on his ranch.” That exercise must have “been worthwhile, because today I seem to have a cost accountant’s mentality,” Eng says. Along with honing mathematical skills on the ranch, Eng learned how to take “risks without being reckless, recognize that some endeavors can be fruitless and need to be abandoned; and be tolerant of others points of view whether it involves money, religion, or politics.”

Busy Retirement Retirement, if it could be called that, has been busy for Eng. He divides his time between Anchorage and Hot Springs. While in Anchorage he maintains his involvement with the Downtown Rotary Club, and to a lesser degree, with the Alaska World Affairs Council. He and Lynn Ann travel extensive-

A few years ago the Engs gave $25,000 to UAA to endow a scholarship fund—the C. John and Lynn Ann Eng Construction Management Scholarship. Eng also extended his charity work to his hometown of Waco, where he helped plan the Waco Community Scholarship and in 2014 made a donation of seed money. While Eng is busy with his new subdivision in South Dakota and enjoying traveling, Alaska is still his home and he is concerned about the state’s economy. He supports measures such as sales and income taxes to solve the state’s fiscal problem and would gladly pay both. He favored the governor’s decision to cut the Permanent Fund Dividend, which he says has become “a kind of welfare” for Alaskans. He has always donated his dividends and did not even apply for one last year. Unlike most, Eng sees an upside to the state’s fiscal woes. “I think this could be a big benefit to the state,” he says. He uses a business analogy to explain his reasoning. “Sometime when you have a big challenge in business, and finances are challenged, then people get creative. They face up to it and make the right decisions to achieve a sustainable turnaround.” That is what he hopes will happen in Alaska.  R Freelance writer Shehla Anjum is based in Anchorage.

Alaska Business Monthly | March 2017www.akbizmag.com


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Preleasing Undeveloped Property Pointers for commercial tenants By Jeff Grandfield and Dale Willerton

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s either a new or existing commercial tenant, you may be tempted to prelease undeveloped property (to open a new business or move your business to). As we explain in our book, Negotiating Commercial Leases & Renewals FOR DUMMIES, this is potentially the most unpredictable lease agreement for a tenant to enter into. Why? The answer is simply because you are making a long-term leasing decision based on little more than a hole in the ground and you can’t visually assess the property or physically touch the bricks and mortar.

Unilateral Changes Often in these types of deals the commercial tenant is required to make a long-term leasing decision and commitment based only on the landlord’s design drawings—which the landlord can typically unilaterally change. We remember one prelease deal where the landlord not only changed the color scheme and exterior look of the property (so as to save money), but also did so against the wishes of all the tenants who had signed up to date. Additionally, there are no existing tenants to talk to about how their business is doing within the property (as there are no tenants open for business yet). On the other hand, some of the best leasing locations are preleasing opportunities or new properties under development, especially if the physical location or land is well situated. The Lease Coach has successfully completed many prelease deals for our clients with excellent long-term results. Just keep in mind that landlords often reserve the right to make changes to your unit without tenant consent. This can affect the size, shape, physical location of the tenant’s desired premises, the building itself, or even the grouping of buildings. Traps to Avoid One trap to avoid is signing the lease agreement and then waiting months while the landlord tries to finish leasing up the property. Some landlords won’t—or can’t afford to— start construction until they hit a set percentage of done deals or leased space. The agreement with the mortgage holder may be that once the landlord gets signed lease agreements for 50 or 60 percent of the property, the funding package is approved and finalized, and 82

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Building Alaska

then (and only then) the property can be built. Ensure that you have a termination date in the event the commencement of the development is delayed beyond a reasonable timeline or your requirements. Another trap to avoid is where the landlord is going forward with the development but has only secured a handful of tenants. This will result in a more vacant property that customers will not be encouraged to visit. To be successful, a proper tenant mix and synergy is required— especially for retail plazas. Again, you can look to have a right of termination in the event that there is not a certain level of preleasing achieved by a specific date or negotiate to only have your rent commence in full once the tenancy reaches a predefined level.

Anticipating Unknowns If you’re one of the first tenants signing a prelease deal for a new development, you may be disappointed with your new neighboring tenants. The marketing material for the new commercial property may show a great mix of potential tenants; however, this is only a wish list for the landlord. If a specific anchor or other tenant fails to materialize, this obviously affects your site selection process and even the rental rate you’re willing or capable of paying at that property. As one of the first tenants in a new property, think also of the

Grandfield (left) and Willerton.

potential headaches for visiting customers—no matter how enticing your business will be, these people may not want to navigate a construction zone just to get to you. In closing, remember the biggest challenge is anticipating unknowns (timing, other tenants, the final product built) and the more you can anticipate for some of these potential hurdles through strong planning and a well negotiated lease, the better your opportunity to end up with a strong lease in a desirable new commercial property.  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 coauthors of Negotiating Commercial Leases & Renewals FOR DUMMIES (Wiley, 2013). Got a leasing question? Need help with your new lease or renewal? Call 1-800-738-9202, e-mail DaleWillerton@TheLeaseCoach.com or visit www.TheLeaseCoach.com. For a copy of our free CD, Leasing Do’s & Don’ts for Commercial Tenants, please e-mail your request to JeffGrandfield@ TheLeaseCoach.com.

Alaska Business Monthly | March 2017www.akbizmag.com


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March 2017 | Alaska Business Monthly

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Cook Inlet Housing Authority’s 3600 Spenard

Building up affordable housing and the Anchorage community By Tasha Anderson

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ook Inlet Housing Authority (CIHA) develops housing to follow their vision of “Independence through Housing.” CIHA recently completed the development of two properties in East Anchorage and has one project under development in Spenard. The completed projects are Creekview Plaza 49, located off Muldoon Road and DeBarr Road, which offers housing for those aged fifty-five and older that can live independently, and Grass Creek North I, located off of Muldoon north of the Muldoon Fred Meyer, a mixedincome development with both income restricted and unrestricted units and bedroom sizes ranging from one to four bedroom units. 3600 Spenard, which is a mixed-use building located on the corner of 36th Avenue and Spenard Road that will feature retail space and residential housing for a variety of household incomes, is currently under construction. CIHA’s Director of Public and Resident Relations Sezy Gerow-Hanson says, “All of our developments are built to address affordability, which also addresses homelessness 84

and other issues. We’re in the business of building, primarily, affordable housing.”

3600 Spenard She says that 3600 Spenard’s anticipated completion date is August of this year; they broke ground on the project in July 2016. 3600 Spenard is owned by CIHA, was designed by KPB Architects, and The Peterson Group is the project’s contractor. Construction will take fourteen months, but planning for a project like this is complex and takes much longer. First and foremost, CIHA needs to secure site control. In the case of 3600 Spenard, the property was actually two separate parcels purchased at different times. One was a parking lot for a business that previously existed on the corner, PJ’s. “We were a little bit bursting at the seams with our folks, our employees, business partners, and our clientele, so shared parking became, as we have grown, a little bit more challenging. So we bought that parking lot for our employees to overflow to,” Gerow-Hanson says. It was later, after PJ’s had been seized by the US Marshals Service and sold at auction, that CIHA purchased the second parcel, about five years ago, she says. Having secured the property, “You come up with a concept design,” Gerow-Hanson says. “You don’t go to full design, but you envision.” She says that CIHA has to consider parking

considerations, how big the building can be, what size of units, what the mix of units will be, if the property will have retail space, etc. “It’s kind of like building blocks; you’re putting on and taking away, and you’re conceptualizing. This process also involves talking to the local community councils and neighbors about the concepts that we think will best suit the site and getting their feedback.” For 3600 Spenard, “This site doesn’t feel like a family-friendly site, as far as like a large family of four or five people, but certainly one bedroom apartments seem like the fit for this site,” she says. “We feel it’s a great place to live because residents are going to have access—straight shot to downtown, straight shot to midtown—those are the hubs of employment. And so if you live here you have this great accessibility, walking, biking, driving, taking a bus—there’s a bus stop right outside of the building.” Additionally, she says that the location in midtown Anchorage seems like a good fit for retail space options for many of the same reasons that it’s beneficial for residents: “There’s nice access off of Minnesota, there’s great access off of 36th and Spenard.” She says that 3600 Spenard’s retail space will be flexible, depending on the interest of tenants. Either the entire space can be utilized by one tenant or it can be broken up into up to three smaller retail spaces.

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BUILDING ALASKA SPECIAL SECTION

General contractor The Peterson Group continues work at 3600 Spenard, a mix-used residential and retail space located on Spenard Road and 36th Avenue, in January. Photo by Tasha Anderson for ABM

Finding Funding With a solid concept, CIHA moves on to how to finance a project. 3600 Spenard has ten different funding sources, including Supplemental Grant Program funds, Alaska Housing Finance Corporation loans, CIHA loans, funds from the US Department of Housing and Urban Development, a Federal Home Loan Bank AHP Grant, Low-Income Housing Tax Credit Sale Proceeds, Alternative Energy Credit Equity, State of Alaska Demolition Grant, and a Rasmuson Foundation Grant. In total, CIHA sourced $10,339,501 for 3600 Spenard. It’s a complicated process as the different sources of funding can come with different requirements. “We have a seasoned team that has been doing this, as a team, for sixteen years now,” Gerow-Hanson says. “They look at every angle of how to make it a successful development—financially feasible, livable, desirable as a place to live. They look at the design aspects with architects, and then they look at partnerships with equity investors, public and private funds, grant money from the state, grant money from Rasmuson Founwww.akbizmag.com

March 2017 | Alaska Business Monthly

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dation, the Federal Home Loan Bank has a grant program that we’ve had access to, loans through AHFC, money from HUD, etc.” She says CIHA also has funding through NAHASDA, the Native American Self-Determination and Housing Act. She says it’s a just a part of the funding, but “each source makes or breaks the deal because you’ve got little gaps that determine whether something can be built or not. If you don’t get the $50,000, or if you don’t get the $500,000, the whole thing can collapse.” The largest portion of the funding is the Low-Income Housing Tax Credit Sale Proceeds at $6,078,703. Gerow-Hanson says, “The application for low-income housing tax credits, run through AHFC, is a long process. So you put forth your building concept and funding structure in the pre-development application and you are allowed to move on to the final round if your pre-application passes the first test. If you pass that first mark, you get to apply for an allocation of low-income housing tax credits. So you’ve got months leading up to the pre-application, and it’s competitive, and you don’t know how many other people are going to be applying for the allotment of low-income housing tax credits.” The different funding sources can have requirements for the building once it’s built. 3600 Spenard is a mix of retail space and thirty-three one-bedroom apartments that will have units for rent at both market rate and to those with household incomes less than or equal to 60 percent of Area Median Income. The application process for the apartments that aren’t rented out at market rates can be lengthy. CIHA can’t simply approve applications—a third party has to verify the applicant’s information and there’s a screening process in addition to lots of documentation. “Eligibility is a big part of what we do, compliance, all of that’s driven by the sources of funding,” Gerow-Hanson says. “They tell you the scale of eligibility based on household income; you can’t be a dollar over that and qualify for the unit. If it’s set aside for someone who’s 60 percent of area median income or below, that’s a hard line.”

Living Amenities 3600 Spenard will have an elevator for access to the second and third floors, and a key will be required for access to all of the residential areas of the building. The apartments at 3600 Spenard will have a rental range of $785 to $1,250 plus electric. Each unit is approximately 650 square feet, will have a washer and dryer in unit, and will have a small private deck or balcony. The building will have secured, covered bike storage; additional storage in the building for tenants; and a second-story deck available for all tenants “which faces the mountains; it’s an incredible view,” Gerow-Hanson says. “We’re known for building colorful properties, that’s one of our trademarks,” she says. “It’s directly related to the fact that color matters and having just a beige development, or a gray development, does not excite us, and it does not add to the community.” For 3600

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Spenard, CIHA is developing the ability to project images on the outside of the building. The projected images can feature different artists or change to match a season or theme. “It gives us the ability to bring light and playfulness during our darkest winter days and months.” Gerow-Hanson says 3600 Spenard will feature photo voltaic and geothermal alternative energy systems to offset some of the building’s utility costs. She says utilizing solar and geothermal allows CIHA to keep the rents of the apartments as low as possible. “The more we can offset the costs associated with common lighting—lighting that’s in the parking lot, lighting that’s in the common spaces— that helps keep the overall cost down which means then you don’t have to keep raising rents to make up for the fluctuation in your utilities,” she says. CIHA’s current buildings are constructed to a 6-star energy rating, Gerow-Hanson says. “That means we’re building a tight building; the buildings have to breathe but you’re doing the right insulation so that it’s operating at the highest efficiency. Utilities are generally quite low for the renters because you’ve built this nice envelope on the building.” She says that keeping rent and utilities affordable is vital for their mission of independent living, as their tenants “have money to spend at retail locations, money if they get sick, money to fix their car, all those things that are part of the cycle that can push people to homelessness—that one paycheck away from a disaster.” She continues, “Having buildings and apartments like this that allow you to put money in savings, that rainy day fund, allows you to have the opportunities when you get that hiccup that happens, it doesn’t push you to homelessness. It gives you the opportunity to move, to stabilize, and then move up and out. So that’s the continuum of housing that you want to see.”

Spenard Community Gerow-Hanson says that CIHA has purchased other parcels of land in the Spenard area in recent years, and 3600 Spenard is just the first property that the organization would like to develop. She says eventually CIHA would like to build a community/cultural center both for their residents and for the Spenard community in general. CIHA’s office is located next to 3600 Spenard, and she says some of CIHA’s staff live in the area. CIHA received a $3 million Community Development Investment program grant from ArtPlace in 2015, and Gerow-Hanson says CIHA is looking to deploy that money in Spenard. “Our aim is to be a catalyst in the neighborhood; our aim is not to do it all but to start to show other potential investors, other developers, that there’s something exciting going on and have them get interested and do other types of private development.” R Tasha Anderson is an Associate Editor for Alaska Business Monthly. www.akbizmag.com

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Building Alaska

Alaska Native Corporation Construction Subsidiaries Companies are building for the future By Tom Anderson

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laskans are facing another year of oil revenue falling far below the State’s expenditures. As the 30th Legislature deliberates in Juneau over Permanent Fund dividend reductions, whether to impose new taxes, and how commerce can be broadened to keep sectors employed in 2017, one industry niche continuing to weather the deficit storm is Alaska Native corporation subsidiaries in the construction fields with impressive success. There are twelve Alaska Native regional corporations that represent Alaskans and a 13th covering non-resident Alaska Natives. There are also more than two hundred village corporations, most of which serve a single village. Out of the twelve larger regionals, several do not have construction companies within their subsidiary umbrella, while one has a business that complements the building trades but doesn’t focus directly on construction. The majority, however, have at least one subsidiary that builds, renovates, and repairs within the state, nation, and internationally. Here is an overview of several all-stars.

CIRI Services Corporation As Big As It Gets When it comes to the definition of a well-qualified, well-managed, and successful team, Cook 88

Inlet Region, Incorporated’s (CIRI) CIRI Services Corporation (CSC) deserves the description. CEO Jared Edgar leads CSC’s success and has the top tier credentials that legitimize a company on the global playing field. Raised in Mat-Su, Edgar is a former Alaska police officer, US Navy officer, JAG attorney, and Iraq War veteran. His Masters in Project Management and experience with federal program administration made Edgar the right choice for retired founder Dick Weldin, whose eponymous name identified the company since 1991 until CIRI purchased Weldin Construction in 2012. Edgar, hired as the business manager in 2014, assumed the lead position two years later. Weldin’s legacy of success would burgeon through his protégé. Just how successful are CSC’s two signature construction companies? Their reputation and recent contract successes speak volumes.

Weldin Construction Edgar explains Weldin Construction’s 2017 projects revolve around design/build construction, project management, selfperformed electrical, mechanical, HVAC, and heavy civil concrete services, as well as specialization in military and civilian fuel systems in Alaska and the Pacific region. In particular, military base construction is a mainstay for the company, having won several five-year SABER (Simplified Acquisition of Base Engineer Requirements) contracts through a competitive bidding process. SABER contracts are structured as fixed-price indefinite-delivery/indefinite-quantity. One local Alaska contract is a five-year SABER contract with a $100 million maximum value to provide construction ser-

vices on Joint Base Elmendorf-Richardson. Services range from a myriad of remodels, renovations, repairs, and alterations, to hangar and airfield upgrades, as well as interior renovations. From new floors and bathrooms to complete office remodels and mechanical systems, the Weldin team covers the entire spectrum of construction. In 2017, Weldin will construct a $5 million physical readiness training center facility on Fort Greely near Fairbanks, with a running track and physical fitness facility for soldiers and their families. Another standout contract for 2017 is a five-year SABER task-order based contract for construction services on Nellis Air Force Base in Las Vegas, Nevada, totaling up to $35 million. In addition, Weldin recently won a seat on a $100 million maximum value contract on Offutt Air Force Base in Nebraska, home of the US Strategic Command. In 2017, Weldin is expanding its performance into Washington state with a contract won on a five-year, $100 million maximum value US Navy contract for construction services in the Pacific Northwest including naval installations in the Puget Sound area.

Silver Mountain Construction CSC’s Silver Mountain Construction is just as busy as Weldin Construction in 2017. Edgar noted Silver Mountain specializes in vertical infrastructure, military fueling, process piping, civil and underground construction projects, and is a Small Business Administration (SBA) 8(a)-certified company wholly owned by CSC. The company works integrally with the US Army Corps of Engineers, the US Air Force, the US Army, and the US Coast Guard, as well as numerous commercial entities.

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BUILDING ALASKA SPECIAL SECTION

Silver Mountain Construction designed, built, and installed helicopter refueling stations on Sitkinak Island for the US Coast Guard. The facilities will aid in search and rescue operations in Arctic and Western Alaska. Photo by CIRI Construction Services

One of the company’s largest 2017 contracts is a five-year SABER contract valued at $35 million that begins February 2017 on Eielson Air Force Base near Fairbanks. Services will include construction and renovation of infrastructure for on base housing, base commissary, exchange facilities, fuel station, road systems, and operational and administrative facilities, as well as improvements for those facilities used by the resident and visiting service members and their families. Silver Mountain joins nine other companies nationally on a $490 million contract supporting the US Army Corps of Engineers building and maintaining complex fuel systems across the United States. Uniquely, this was a specialty started by Weldin, initially in state then moving to the Pacific with projects in Guam, Wake Island, and Johnston Atoll. The Silver Mountain Team is excited to grow and expand their performance to the national level. The construction performed under this contract includes airfield refueling systems, fuel service, and storage facilities. Edgar’s strategic focus and justified excitement regarding the Department of Defense market and his company’s recent successes is evident. “With the basing of two F35 squadrons at Eielson Air Force Base and projects at Clear Air Station and Fort Greely in support of the National Missile Defense system, this is an exciting time for Alaska and Alaskans,” notes Edgar. “The next five years will offer numerous construction opportunities and CIRI Services is both honored and thrilled to be a part of the Department of Defense mission in Alaska.” www.akbizmag.com

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Koniag’s Granite Cove Quarry One Rock at a Time While some regional and village corporations completely avoid construction-related subsidiary ventures, the intuitive recognize the value in service businesses that—even if not “constructing” and renovating—can still support the construction trades. Mike Pestrikoff is the senior project manager with Koniag’s Granite Cove Quarry, LLC. The quarry is located at Shakmanof Cove on Kodiak Island. The company launched in 2012, and Pestrikoff notes the quarry is a substantive source for aggregate and armor stone, representing a significant deposit of granitic rock suitable for marine and road construction. He adds that the quarry is capable of producing armor stone, all grades of riprap, porous and gabion backfill, and crushed aggregate. Recognizing the need for offering comprehensive product with responsive delivery, the company is negotiating on multiple statewide projects in 2017. “We’re a key player in the supply chain for large construction projects throughout Alaska,” says Pestrikoff. Granite Cove is currently producing material for the Seward Harbor expansion that started in the summer of 2016 and should be complete in the late spring this year. The niche market remains supportive of marine construction, primarily breakwater and jetty formations. The rocks are typically huge, ranging from five to ten tons, and towed from the quarry by tug and barge and then offloaded at the source with a loader vehicle. The 2016 and 2017 seasons have included deliveries of the larger armor rock to Homer Spit, Port Lions, Kodiak Airport, St. Paul, and Chignik. Sealaska Corporation Building Infrastructure across the Nation Bob Wysoki is a busy man. As the general manager of Sealaska Constructors, he leads the oversight of multiple projects that are both carrying over from 2016 and new for 2017. Wysoki explains that Sealaska Constructors is a subsidiary of Sealaska and was established in 2009; the company is focusing on nationwide construction services that include design-build, vertical and structural general contracting, military and prison construction, BRAC construction, and Sensitive Compartmented Information Facilities, among numerous other projects. Under the civil and infrastructure umbrella comes construction of levees, water and wastewater treatment, underground, bridge and road construction, and airfield and runway. Sealaska has two construction businesses separated into in-state and national projects. A larger prison project started in mid-2015 will be underway all of 2017 and completed by early 2018 at Federal Correctional Institution, Danbury, Connecticut, which is a low security male facility with a satellite female camp. This comprehensive project includes building housing units and support buildings as well as upgrading the camp’s core unit that includes the law library, medical office, commissary, and visitor’s center. 90

In 2016 Sealaska Constructors was awarded a $10 million contract from the US Department of the Army to partner with the National Guard Bureau, Connecticut Army National Guard to design and construct a National Guard-ready building, approximately 23,760 square feet. Wysocki adds that the facility will feature energy and infrastructure improvements such as an emergency generator, organizational vehicle parking, heating plant, and electric power. Other 2017 construction projects include weather station solar panel and energy upgrades for NOAA in Pacific Islands region, Kodiak’s NOAA federal law enforcement quarters, an elevator replacement in Juneau, and an energy upgrade at the US Forest Service’s visitor center at Mendenhall Glacier. On Prince of Wales Island and Ketchikan the company is focusing on roofing for the US Forest Service, as well as employee housing and an administration building. Wysoki notes that in 2017 both Sealaska 8(a) construction companies are focusing on new projects in Alaska and the Pacific Northwest because shareholders reside and work in these regions, and the company’s commerce “footprint” is intended to benefit as many shareholders as possible. The nexus between localizing projects and maintaining a thriving ownership base is a worthy goal, he adds.

Ahtna Construction and Primary Products Corp. (AC&PPC) Pipelines to Pavement Ahtna Construction and Primary Products Corp. was Ahtna’s very first subsidiary, formed in 1974. Today the company specializes in civil construction, pipeline maintenance, aggregate production, emergency preparedness, and oil spill response. The company is headquartered in Anchorage, with facilities in Fairbanks and Palmer. The President of Ahtna Construction is Dave O’Donnell. O’Donnell has been in the civil construction industry in Alaska for more than thirty-five years. He spent many of those years on the North Slope, as well as on projects across the state. Initially starting his career as an equipment operator, O’Donnell progressed through the ranks to his executive position. He came to Ahtna Construction and Primary Products Corp. in March of 2015. O’Donnell explains the company’s culture is one of celebrating its heritage of the Ahtna people through commerce and employment. He adds that the company’s main focus is, and will always be, its people. The goal is to provide a safe and productive environment for all employees that aligns with expectations of the shareholder owners. The company’s primary client remains Alyeska Pipeline Service Company—a relationship ongoing for more than forty years. This year will be no different, as the company will focus on providing its core competencies for Alyeska Pipeline and civil construction opportunities throughout Alaska. Also in 2017, O’Donnell says, the company will continue with contracts established in 2016 such as the Talkeetna Airport improve-

ment project. This AKDOT project started July 2016 and is scheduled for completion September 2017. The project includes construction of new taxiways, aprons (where the aircraft is parked, refueled, boarded, and loaded), access road, and airport lighting. Also included will be resurfacing of the existing taxiways and runways. “We’re cautious of the 2017 economic forecast,” says O’Donnell. “Even though we experienced growth in 2015 and 2016, we’re being conservative in our expectation of future growth. In an effort to diversify, the company is pursuing several opportunities such as the recent purchase of AAA Valley Gravel in Palmer and federal opportunities under the Small Business Administration inside and outside of Alaska.” AAA Valley Gravel has been an aggregate supplier that contractors have depended on for thirty years in the Mat-Su, complementing ACPPC’s future goals. O’Donnell adds that “under the construction label there are many disciplines. Ahtna Construction and Primary Products provides a variety of civil Construction aspects that are equally important in building Alaska.” The spectrum of Alaska Native-owned subsidiary construction businesses remains broad and diverse. If 2016 newsletter articles, shareholder updates, and annual reports offer any indication of the current and prospective success of construction company subsidiaries, the future looks busy and bright.

Bristol Bar Native Corporation Consider Bristol Bay Native Corporation’s “Winter 2016” shareholder report, as an example. Under the category of “Major Operations,” the regional company’s construction focus is comprised of three separate company groups: the Bristol companies, the CCI companies (excluding CCI Industrial Services), and the SpecPro Environmental Services companies. The report delineates that through the first two quarters of FY2017 these businesses generated combined EBIT of $13.9 million, which is an increase from the $11 million earnings generated for the same period in FY2016. The BBNC winter report also highlighted subsidiary CCI Utility Services, LLC having recently won two competitive 2017 bid contracts, one for rehabilitation of a sanitary sewer system at Portsmouth Naval Shipyard in Kittery, Maine, for the US Navy using cured-in-place pipe lining technology and the other for the National Park Service to replace two progressive cavity grinder pumps at Fort Pickens Ranger Station’s main sewer lift station on Santa Rosa Island near Pensacola, Florida. Arctic Slope Regional Corporation Arctic Slope Regional Corporation is another regional corporation with huge assets and subsidiary diversity in the construction trades. The company’s shareholder news outreach and website information reports ASRC Construction Holding Company provides oversight and support services to three con-

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BUILDING ALASKA SPECIAL SECTION

struction companies: ASRC SKW/Eskimos, Inc., which is a commercial, industrial earthwork, and service construction company; ASRC Civil Construction serves as a civil contractor managing projects ranging from underground utilities to asphalt paving; and ASRC Builders which is a Design-Build contractor that targets heavy commercial and industrial construction and pre-engineered metal buildings statewide. Similar to BBNC, ASRC’s subsidiaries cover project and construction management, civil and vertical construction, utility and industrial construction, and renovations. The parent company’s three construction subsidiaries provided more than $150 million in services in 2016 and more than $1.4 billion in the last decade and are sure to have another profitable 2017 as more projects, from new-build and expansion efforts to repairs and renovations, are sought in Alaska and nationally.

Calista Corporation Tunista Construction, LLC is a general contractor that provides federal and commercial construction services. Comparable to other Alaska Native subsidiaries, Tunista promotes its services as broad and capable, specifically overseeing vertical construction, designbuild, civil construction, and remote site specialties. As with nearly all the larger subsidiaries, its customer base includes federal, state, municipal, and commercial clients. Scrolling through the company’s wide range of projects, new construction, repairs, and renovations are some of its signature services. Along with its corporate office in Anchorage, project locations this year include administrative services in Fairbanks, an operations center in Federal Way, Washingtonstate, and additional branch offices in Ohio, Missouri, Nebraska, Louisiana, and Texas, suggesting a prosperous and national impact in construction services. Construction Industry Grows Despite Economic Instability The magnitude of commerce and potential business that will be captured and performed by Alaska Native corporation subsidiaries scattered across the nation is impressive. Despite the downturn in Alaska’s economy, and generally nationwide, the Alaska Native subsidiaries focusing on construction and the building trades appear to be exceptionally riding high on a wave of prosperity thanks to stellar management, great track records, and decades of experience. Sift through the various company profiles and year-end reports from 2016, or scope the 2017 construction projects underway and soon to start, and shareholders can breathe easier as profits rise as fast as new buildings and projects. The continued robust construction economy will hopefully equate to another year of revenue for Native shareholders, from which all Alaskans prosper. R Tom Anderson writes from across Alaska. www.akbizmag.com

Only CASE planned for Planned Maintenance. NO CHARGE FOR CASE PARTS AND LABOR* FOR 3-YRS / 3000-HRS. Not all heavy machine support is built the same. Only CASE delivers protection with your operating costs in mind. Thanks to a single, simple, predictable payment for machine and maintenance. With the unmatched combination of warranty, telematics and planned maintenance, CASE ProCare protects more than the machine — it protects your business. Dare to compare at CaseCE.com/ProCare

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ALASKA ANCHORAGE 2020 East Third Avenue Anchorage, AK 99501 Phone: 907-277-1541 Fax: 907-276-6795 Email: info@yukoneq.com

WASILLA 7857 West Parks Hwy. Wasilla, AK 99623 Phone: 907-376-1541 Fax: 907-376-1557 Email: info@yukoneq.com

FAIRBANKS 3511 International Street Fairbanks, AK 99701 Phone: 907-457-1541 Fax: 907-457-1540 Email: info@yukoneq.com

1-800-478-1541

www.yukoneq.com

*Select factory scheduled maintenance through ProCare. See dealer for details.**See your dealer for the complete terms of CNH’s Warranty and Limitation of Liability, which contains certain limits and exclusions. ProCare is a factoryfit program available only on select 2013 and newer machines. All rights reserved. CASE is a trademark registered in the United States and many other countries, owned by or licensed to CNH Industrial N.V., its subsidiaries or affiliates.

March 2017 | Alaska Business Monthly

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SPECIAL SECTION

Building Alaska

Spring Construction Round-Up Compiled by ABM Staff

92

Alaska Business Monthly | March 2017www.akbizmag.com


Cape Lisburne Orion Marine Contractors, Inc. bid on the Cape Lisburne project in July of 2015 and

was awarded the $41 million project in September of 2015. The five-year project consists of replacing a 5,200-foot seawall that protects the runway at Cape Lisburne, a US Air Force radar site located along the coast in northwest Alaska. A total of 90,000 cubic yards of armor rock and 180,000 cubic yards of smaller rock will be mined at the existing quarry located one mile from the runway. Long reach excavators will be used to remove the existing armor rock and to build the new seawall. Project planning included procuring a twenty-man camp, equipment purchases,

LEADING PROVIDER OF REMOTE ALASKA INFRASTRUCTURE CONSTRUCTION & MAINTENANCE SERVICES SINCE 1995

Orion Marine working at the quarry near the Cape Lisburne project in Northwest Alaska on the Chukchi Sea coast. © Orion Marine Contractors, Inc.

301 W. Northern Lights Blvd., Suite 300 Anchorage, AK 99503

907-278-6600 Conamco.com www.akbizmag.com

March 2017 | Alaska Business Monthly

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BUILDING ALASKA SPECIAL SECTION

T

he spring construction round up was compiled in January when several hundreds of millions of dollars’ worth of projects were still out to bid, awaiting awards, or waiting until after break up. Plus, we’ve included several projects in standalone articles this month. Here is a sampling of some of the work Alaska contractors are currently engaged in around the state.


BUILDING ALASKA SPECIAL SECTION

work planning/sequencing, material and consumable purchases, and performing the initial quarry survey. Work completed onsite (from mobilization in July 2015 to October 2016) included initial quarry development, rock production, satellite communications, and camp setup. This year Orion will continue with rock production in the quarry and begin removing the existing seawall to construct the new seawall.

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Fairbanks HaskellDavis JV is the general contractor for the UAF (University of Alaska Fairbanks) Power Plant, designed by architect Design Alaska. The Power Plant will house two 140,000 pound/hour circulating fluidized bed boilers and a 17 megawatt steam turbine that will heat the UAF campus. The plan has an anticipated completion date of June 30, 2018. Also in Fairbanks, Davis Constructors is the general contractor for the UAF Engineering Facility, designed by architect ECI/Hyer Architecture. The four-story, 116,900-square-foot Engineering building has a projected completion date in December and cost $80 million. Watterson Construction has been awarded a $20 million project to construct a 30,000-square-foot F-35 flight simulator at Eielson Air Force Base in Fairbanks. The project will begin this spring with an anticipated completion date in the fall of 2018. Watterson anticipates that at peak construction the project will employ forty workers.

Alaska Business Monthly | March 2017www.akbizmag.com


© Orion Marine Contractors, Inc.

BUILDING ALASKA SPECIAL SECTION

Orion Marine continues to mine rock at a quarry a mile from the Cape Lisburne project to replace a 5,200-foot seawall that protects the runway.

FROM HIGHWAYS TO RUNWAYS...

Worker safety and accident prevention is the highest priority for all operations.

• Airport Runways • Roads • Highways

• Asphalt Products • Concrete Products • Pre-Stress

Quality Asphalt Paving 240 W. 68th Ave. Anchorage, AK 99518 Ph: 907-522-2211 Fax: 907-344-5798 Unalakleet Orion Marine Contractors is performing work on Unalakleet River Revetment Phase III in Unalakleet. The $5.1 million project, owned by the Corps of Engineers and the City of Unalakleet, will begin in mid-June. Phase three of the revetment program is to build a 350-foot modified diaphragm sheet pile bulkhead, which will protect the Unalaska shoreline from storm surges. Orion Marine Contractors also built Phase II, an armor stone slope (instead of sheet pile). Nightmute Work continues on the Nightmute K-12 Rennovation/Addition for the Lower Kuskokwim School District. In February UIC Construction started thermopile installation; the thermopiles will provide the foundation for the new K-12, 30,000-square-foot school, which was designed by Stantec. The project is estimated to cost $30 million and has an anticipated completion date in spring 2019. Kwethluk Bethel Services Inc. continues construction on the new two-story, 48,500-square-foot Kwethluk K-12 School for the Lower Kuskokwim School District. Stantec provided full architectural and engineering design services on the replacement school, which sits on driven piles that put the first floor nearly 11 feet above ground and provide separation from potential flooding in the community. www.akbizmag.com

March 2017 | Alaska Business Monthly

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BUILDING ALASKA SPECIAL SECTION Photo Courtesy of Stantec

Granite Construction placed more than 200,000 tons of gravel material across the North Klatt Bog over the winter in preparation for the 100th Avenue Extension, Phase IIA–Minnesota Drive to C Street project, a 0.75 mile road engineered by Stantec.

The project has a cost of $32.8 million and is scheduled for completion this fall.

Port Lions General contractor Western Marine was awarded a contract for the US Army Corps of Engineers Port Lions Harbor Project on Kodiak Island. The $8.7 million project has an anticipated start date in June. Work includes navigation improvements, primarily updating breakwaters to prevent damaging storm surges that enter the harbor and deposit sediment and debris at the city dock and its access road. According to the US Army Corps of Engineers, the new east detached breakwater will be about 700 feet long and 150 feet wide at the base and constructed directly on the sea floor, with no need to excavate or otherwise prepare the existing site; the west breakwater extension will be approximately 150 feet long and will require removing some accumulated sediment and debris. Anchorage Davis Constructors continues work on the 96

Anchorage Museum Expansion which was started in February of last year and has a completion date in June. The two-story expansion includes 31,067 square feet on top of the existing museum. Davis is the general contractor and the architect on the project is McCool Carlson Green. Davis Constructors (again with McCool Carlson Green as architect) began work on the Alaska Gallery Exhibit, also at the Anchorage Museum, in September 2016. Work continues and is scheduled for completion this month of the 15,000-square-foot remodel/addition on the Southeast side of the second floor. Also in Anchorage, Davis Constructors is the general contractor for the Turnagain Elementary School Renewal, a 56,775-squarefoot renovation of the two-story school, owned by the Anchorage School District. Nvision Architecture is the architect for the $13 million project, which began in May of 2016 and has an anticipated completion date in August. Watterson Construction has been tapped

to construct the Diamond Animal Hospital, designed by architect Spark Design. Site work began on the 8,500-square-foot building in 2016 in anticipation of spring construction. As of publication Watterson estimates construction is 5 percent complete, with completion estimated for winter of this year. Work continues on the Kendall Audi Volkswagen Porsch located at Dowling Road and the Old Seward Highway. Work began in the summer of 2016; foundation work that began in the fall is now completed, and steel erection was to begin in February. Watterson Construction, the project’s general contractor, has a projected completion of winter 2017. The 60,000-square-foot building project, designed by ECI/Hyer, will employ forty during peak construction. ARCADIS is the general contractor on the Southcentral Foundation Primary Care Clinic 2 North project, which has two phases. The design team includes McCool Carlson Green, Reid Middleton, and RSA Engineering for the 20,000-sqare-foot comprehensive renovation. Phases include renovation of the

Alaska Business Monthly | March 2017www.akbizmag.com


Kenai The Kenai Middle School is receiving several

enhancements performed by Orion Construction and designed by Stantec. It will cost $5.3 million to make enhancements to the 74,000-square-foot school for the abatement and roof replacement project. Work is comprised of the abatement of hazardous materials above the ceiling; constructing new replacement ceilings with new LED lighting throughout much of the interior; removal of existing BUR roof and replacement with new BUR roof over new rigid insulation; removal and replacement of mansard roof members; and constructing new state of the art energyefficient exterior building envelope, including adding wall insulation, air, and vapor barriers along with and new fascia and wall metal panels.

uled for this spring and will include the floating docks, drive down ramp and float, and upland buildings and paving. The breakwater construction and basin dredging is ongoing, scheduled for completion this year. Also in Valdez, Kumin is the primary architect for the Prince William Sound College Exterior Renovations (owned by the University of Alaska Southeast); other contractors include Coffman Engineers (structural, M&E), EHS-Alaska (hazardous materials abatement design), and HMS (cost estimating). Wolverine is the general contractor. The estimated cost of the 36,806-square-foot project is $346,000; the renovation project began in July 2016 and at press time was slated for completion in February.

Valdez The Valdez New Boat Harbor project is an expansion of the City of Valdez harbor facilities; the $82.6 million project’s general contractor is ARCADIS. The renovation includes floating docks, gangways, and all-season utilities with 136 wet slips ranging in length from 36 feet to 100 feet; a drive down ramp and float; fuel tank farm with associated fuel dock; state-of-the-art bilge water treatment system; breakwaters and basin dredging by the US Army Corps of Engineers; laundry, shower, and restroom facilities; harbor office and storage building; and timber boardwalk and pathways. Phase I work, which concluded in 2016, included site work and the utility installations. Phase II construction is sched-

Ketchikan Started in October 2016, work continues on the Ketchikan North Tongass Highway Illumination Upgrades project for the Alaska Department of Transportation and Public Facilities. The $4.1 million project, which includes the installation of 105 LED lights along five miles of the North Tongass Highway, was designed by Stantec. The contractor for the project is Swanson General Contractors. Stantec reports one of the major challenges to be overcome is the placement of light pole foundations where bedrock is shallow and prevalent. The project is slated for completion in August.  R

COMPANIES

BUILDING ALASKA MARINE LLC

ENERGY SERVICES LLC A CIRI COMPANY

A CIRI COMPANY

FOR MORE THAN

s r a e y 5 3

CONTRUCTION, INC Experts in Resource Development and Heavy Civil Construction

Cruz Construction | Alaska Interstate Construction | Alaska Aggregate Products Cruz Energy Services | Cruz Marine Original www.akbizmag.com

A CIRI Company

Option 1

A CIRI Company

Option 2

March 2017 | Alaska Business Monthly

97

BUILDING ALASKA SPECIAL SECTION

administrative area and telecom room at the clinic as well as renovation of the clinical areas in support of customer-owners served by Southcentral Foundation’s program. Construction will begin this spring with an anticipated completion of fall of this year. Construction started in November 2016 on 100th Avenue Extension, Phase IIA–Minnesota Drive to C Street, with Granite Construction placing more than 200,000 tons of gravel material across the North Klatt Bog to start the peat consolidation process for the future road, which is approximately 0.75 miles long and will cost $3.2 million. The surcharge process will continue for four to six months (as of press time), with completion projected for June. Stantec has and continues to provide engineering services for the project, owned by the Municipality of Anchorage. The follow-on project to construct the roadway is in the final design stage with construction funding requested on the MOA’s 2017 Road and Drainage Bond proposition on the April 2017 ballot. Kumin is the architect for a University of Alaska Anchorage project, the Weidner Classroom Remodel on the University of Alaska Anchorage campus. The project includes 1,200 square feet of classroom renovations. Hepburn Design was the interior designer for the project, which is projected for completion in August.


SPECIAL SECTION

Building Alaska

2017 Construction Directory GENERAL CONTRACTORS COMPANY TOP EXECUTIVE

360 General LLC 5400 Eielson St. Anchorage, AK 99518 Phone: 907-868-8880 ABC Inc. 401 Driveway St. Fairbanks, AK 99701 Phone: 907-457-2221 Fax: 907-457-5045 Alaska Concrete Casting 5761 Concrete Way Juneau, AK 99801 Phone: 907-780-4225 Fax: 907-780-4230 Alaska Dreams, Inc. 2081 Van Horn Rd., #2 Fairbanks, AK 99701 Phone: 907-455-7712 Fax: 907-455-7713 Alaska Interstate Construction LLC 2525 C St., Suite 305 Anchorage, AK 99503 Phone: 907-562-2792 Fax: 907-562-4179 Alborn Construction Inc. 118 E. International Airport Rd. Anchorage, AK 99518 Phone: 907-276-4400 Fax: 907-276-4401 ASRC SKW Eskimos, Inc. 3900 C St., Suite 308 Anchorage, AK 99503 Phone: 907-339-6700 Fax: 907-339-6745 BC Excavating LLC 2251 Cinnabar Lp. Anchorage, AK 99507 Phone: 907-344-4492 Builders Choice, Inc. 351 E. 104th Ave. Anchorage, AK 99515 Phone: 907-522-3214 Fax: 907-522-3216 C & R Pipe and Steel, Inc. 401 E. Van Horn Rd. Fairbanks, AK 99701 Phone: 907-456-8386 CDF General Contractors, Inc. PO Box 211586 Anchorage, AK 99521 Phone: 907-337-7600 Fax: 907-272-2209 CH2M 949 E. 36th Ave., Suite 500 Anchorage, AK 99508 Phone: 907-762-1500 Fax: 907-762-1600 ChemTrack Alaska, Inc. 11711 S. Gambell St. Anchorage, AK 99515 Phone: 907-349-2511 Fax: 907-522-3150 CONAM Construction Co. 301 W. Northern Lights Blvd., Suite 300 Anchorage, AK 99503 Phone: 907-278-6600 Fax: 907-278-4401 Cornerstone General Contractors, Inc. 4040 B St., Suite 200 Anchorage, AK 99503 Phone: 907-561-1993 Fax: 907-561-7899 Criterion General, Inc. 2820 Commercial Dr. Anchorage, AK 99501 Phone: 907-277-3200 Fax: 907-272-8544 Cruz Companies Alaska 7000 E. Palmer Wasilla Hwy. Palmer, AK 99645 Phone: 907-746-3144 Fax: 907-746-5557 Davis Constructors & Engineers, Inc. 6591 A St., Suite 300 Anchorage, AK 99518 Phone: 907-562-2336 Fax: 907-561-3620

98

YEAR FOUNDED / ESTABLISHED IN ALASKA

Tyler Loken info@360general.com 360general.com Susan Ellison, Pres. info@akabc.com akabc.com Dave Hanna, Mng. Member

WORLDWIDE / ALASKA EMPLOYEES

4 4

General contractor.

1995 1995

21 21

2004 2004

4 4

1994 1994

30 30

General contractor specializing in energy efficient remodeling and product sales. Seamless siding and gutters, windows, doors, all remodeling. Material Sales include: Commercial doors, windows, store front, metal siding, metal flashing, door hardware, window wells. Precast concrete supplier, furnishing utility, traffic and retaining wall products as well as custom casting, building panels and foundation systems. Rebar fabrication and supply house stocking 20’ and 40’ bar in #2 through #10 bar. Detailing, bending and cage tying services. Design, sales and construction of fabric covered structures and pre-engineered metal buildings.

1995 1995

215 215

2001 2001

10 10

alaskaconcretecasting@gci.net Meini Huser, Pres. sales@alaskadreamsinc.com alaskadreamsinc.com Dave Cruz, Pres. info@aicllc.com aicllc.com Adam Alborn, Pres. info@albornconstruction.com albornconstruction.com Brady Strahl, Pres. info@achc.asrc.com asrcconstruction.com Gordon Bartel, Pres. admin@bcxllc.net bcxllc.net Mark Larson, Pres. sandi@builderschoice.us.com builderschoice.us.com Dennis Wilfer, Pres. lindsayj@crpipe.net crpipesteel.net Gary Murphy, Pres. cdfinc@alaska.net cdfincak.com Terry Bailey, Sr. VP/AK Reg. Mgr. Terry.Bailey@ch2m.com ch2m.com/alaska Carrie Lindow, Pres. info@chemtrack.net chemtrack.net Dale Kissee, Pres.

1974 1974

jjolley@cornerstoneak.com cornerstoneak.com Dave DeRoberts, Pres. cocod@criteriongeneral.com criteriongeneral.com Dave Cruz, Pres. info@cruzconstruct.com cruzconstruct.com Josh Pepperd, Pres./CEO admin@davisconstructors.com davisconstructors.com

Alaska Interstate Construction, LLC is an Alaska company providing heavy civil construction services to private industry, as well as local, state and federal government agencies in the oil and gas, mining and public works sectors throughout Alaska-from the Aleutian chain to the North Slope. Full service commercial and residential General Contracting. Specializing in tenant improvements, building modifications, home additions and renovations.

1982 1982

200+ General contractor, wholly owned by ASRC Construction Holding Company. Providing 200+ commercial and government clients with turnkey construction services, including heavy civil, industrial water/wastewater treatment, building construction, renovation/modernization and utilities work throughout Alaska. 40 Complete hauling and excavation services, environmental, water, sewer and storm utili40 ties, site work, hydro excavation, CCTV Inspection, GPS Site Mapping and fabrication.

1996 1996

250 200

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

1992 1992

45 45

For the largest inventory of quality new and used steel pipe (1/2”-60”), aluminum, structural steel, angle, channels, beams, rebar, and culvert products statewide, think of C & R Pipe and Steel! Call us for all your needs!

1983 1983

4 4

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

1946 20,515 Premier Alaskan oil & gas contractor with planning, engineering, procurement, logistics, 1962 1,626 sealift/truckable modules fabrication, piping, construction, program & construction management, operations & maintenance, supporting oil, gas, LNG, transportation, environmental, water, mining & government. 1973 10-25 Please check out our Statement of Qualifications at chemtrack.net/about_us.htm. 1973 10-25

1984 1984

250 250

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.

1993 1993

40 40

General contracting utilizing collaborative project delivery methods for new commercial construction and the precision renovation of existing facilities for Alaska leading academic, civic, industrial, medial, non-profit, oil and gas, and private development organizations.

1992 1992

79 79

Commercial general contractor.

1981 1981

234 181

Experts in resource development and heavy civil construction.

1976 1976

97 97

Davis brings a “full service” approach to projects, tailoring services to meet the specific needs of each client from design inception to project completion. Davis brings nearly 30 years of experience in Design/Build project delivery, representing over 3.5 million square feet of construction.

conamco.com Joe Jolley, Pres.

BUSINESS DESCRIPTION

2015 2015

Alaska Business Monthly | March 2017www.akbizmag.com


BUILDING ALASKA SPECIAL SECTION

COMPANY TOP EXECUTIVE

Delta Constructors LLC 3000 C St., Suite 202 Anchorage, AK 99503 Phone: 907-771-5800 Fax: 907-771-5911 Dirtworks Inc. 3255 S. Old Glenn Hwy. Palmer, AK 99645 Phone: 907-745-3671 Fax: 907-745-3672 Door Systems of Alaska, Inc. 18727 Old Glenn Hwy. Chugiak, AK 99567 Phone: 907-688-3367 Fax: 907-688-3378 Doyon Associated LLC 615 Bidwell Ave., Suite 100 Fairbanks, AK 99701 Phone: 907-374-9130 Ghemm Company Inc. PO Box 70507 Fairbanks, AK 99707 Phone: 907-452-5191 Fax: 907-451-7797 Golden Heart Construction PO Box 72728 Fairbanks, AK 99707-2728 Phone: 907-458-9193 Fax: 907-458-9173 Granite Construction Company 11471 Lang St. Anchorage, AK 99515 Phone: 907-344-2593 Fax: 907-344-1562 Jay-Brant General Contractors 460 Grubstake Ave. Homer, AK 99603 Phone: 907-235-8400 Fax: 907-235-8731 K & W Interiors 9300 Old Seward Hwy. Anchorage, AK 99515 Phone: 907-344-3080 Fax: 907-349-5373 K-C Corp. 2964 Commercial Dr. Anchorage, AK 99501 Phone: 907-258-2425 Fax: 907-278-8018 Kiewit Corporation 2000 W. International Airport Rd., Suite C-6 Anchorage, AK 99502 Phone: 907-222-9350 Fax: 907-222-9380 Knik Construction 6400 S. Airpark Pl. Anchorage, AK 99502-1809 Phone: 907-249-0208 Fax: 907-245-1744 Little Susitna Construction Co. 821 N St., Suite 207 Anchorage, AK 99501 Phone: 907-274-7571 Fax: 907-277-3300 Loken Construction LLC 5400 Eielson St. Anchorage, AK 99518 Phone: 907-868-8880 Mass Excavation, Inc. PO Box 241093 Anchorage, AK 99524 Phone: 907-771-9272 Fax: 907-770-7752 Mechanical Contractors Fairbanks PO Box 74796 Fairbanks, AK 99707 Phone: 907-456-8347 Fax: 907-451-6132 Meridian Systems, Inc. 200 W. 34th Ave., #969 Anchorage, AK 99503 Phone: 907-279-3320 Fax: 907-279-2369 New Horizons Telecom, Inc. 901 Cope Industrial Way Palmer, AK 99645 Phone: 907-761-6000 Fax: 907-761-6001 NORCON, Inc. 949 E. 36th Ave., Suite 501 Anchorage, AK 99508 Phone: 907-762-1500 Fax: 907-275-6300 North Country Builders of Alaska 3435 N. Daisy Petal Cir. Wasilla, AK 99654 Phone: 907-373-7060 Northern Dame Construction PO Box 871131 Wasilla, AK 99687 Phone: 907-376-9607

100

YEAR FOUNDED / ESTABLISHED IN ALASKA

Ed Gohr, CEO info@deltaconstructors.net deltaconstructors.net Scott Johnson, Pres.

WORLDWIDE / ALASKA EMPLOYEES

BUSINESS DESCRIPTION

2007 2007

600 96

1989 1989

20 20

2000 2000

15 15

2006 2006

200 200

1952 1952

40 40

Commercial general contractor performing work in Northern Alaska.

1982 1982

6 6

Commercial and residential remodel and new construction.

Delta Constructors specializes in Construction Management (estimating, planning, scheduling and project execution) and direct hire construction for structural, piping, mechanical, electrical and instrumentation disciplines, in support of Up & Mid-Stream Oil and Gas development. Excavation contractor.

alaskadirtworks.com/ Beth Bergh, Owner beth@doorsystemsak.com doorsystemsak.com Warren Christian, Pres. doyonassociated.com Meg Nordale, Pres.

Commercial and industrial doors, Cornell rolling doors, grilles, shutter. Fire-rated rolling door and accordion fire-rated side folding partitions. Modernfold Flat wall partitions, Accordion Partitions, Skyfold room separation. McGuire dock equipment. EPD/Renlita Hangar doors. Blast-resistant doors. Doyon Associated, LLC (DAL) specializes in arctic pipeline construction and associated infrastructure. DAL has an established presence in Alaska with offices in Fairbanks and Anchorage, and shop/yard facilities in Fairbanks and Deadhorse.

ghemm@ghemm.com Craig Robinson, Pres. craig@goldenheartconstruction.net goldenheartconstruction.net Derek Betts, VP/Region Mgr. alaska.projects@gcinc.com graniteconstruction.com Daniel Cope, GM dcope@jaybrant.com jaybrant.com Dale Kaercher, Pres. knwinteriors@alaska.net k-winteriors.com Byron D. Kohfield, Pres.

1922 1974

5,000 Public and private heavy civil construction, design-build, construction aggregates, 250 recycled base, warm and hot mix asphalt, road construction, bridges, piling, mine infrastructure and reclamation and sitework.

1983 1983

30 30

Public works, military and commercial construction.

1985 1985

25 25

1986 1986

26 26

K&W Interiors is a family owned business, providing Alaskans with fine quality interior finishes for over 30 years. K&W was selected as one of the top 500 Remodelers in the nation for 2012, 2013, and 2014 by Qualified Remodeler magazine. From Design to Installation your Satisfaction is Guarantee. General contracting commercial/industrial. Specializing in light gage metal framing, sheetrock, taping, painting and specialty coatings.

bkohfield@kccorporation.com Kiel Beloy, Project Exec. kiewit.com Steve Jansen, Pres. knikinformation@lynden.com lynden.com/knik Dominic Lee, Owner littlesu@ak.net littlesu.com Tyler Loken info@lokenconstructionak.com lokenconstructionak.com Josh Pepperd, Pres.

1884 1949

5,000 Continuous Alaskan operational presence since 1949. Vertical buildings, infrastructure 20-50 (heavy civil, roads, bridges), dams, oil/gas facilities, mining.

1974 1974

182 177

1980 1980

8 8

A general, mechanical and electrical contractor. Architects, civil, mechanical and electrical engineers, licensed in twelve states. Construction project management. Importer, exporter and global project consultation.

2003 2003

22 22

Framing, steel, solar, and siding contractor.

2004 2004

28 28

1956 1956

1 1

Mass Excavation, Inc. was born out of a need for a responsive civil contractor capable of meeting the diverse range of services from large project development to more intricate building site improvement details. Mass X provides residential, commercial and industrial site development. Association of Mechanical Contractors utilizing trade skilled employees in industrial, commercial and residential construction and services.

1997 1997

21 21

We make buildings smarter by providing: Intelligent building systems, energy management & analysis, building commissioning, energy conservation measures, and ENERGYSTAR rating services.

1978 1978

75+ 75+

1974 1974

247 247

1998 1998

3 3

General, Electrical and Engineering Contractor with emphasis in Telecommunications. In-house engineering, installation and project management services for urban and remote communications facilities, OSP and ISP cabling as well as electrical and communications equipment installation and integration. NORCON is a full-service General Contractor with expertise in mechanical, electrical, instrumentation & process pipe installations for AK Oil & Gas. Our experienced craft labor executes projects including well tie-ins, critical shutdowns/turnarounds, scaffolding, and support facility construction. Commercial and residential general contractor for new, remodel and all phases of construction.

admin@massexcavation.com massexcavation.com

mcafbks@gci.net mcfairbanks.com John Fortner, GM sales@msicontrols.com msicontrols.com Leighton Lee, CEO info@nhtiusa.com nhtiusa.com Randy Barnes, Pres. Norcon, Inc. Inquiries@NORCON.com norcon.com Thomas Smith, Pres. tsmith@northcountrybuilders.com northcountrybuilders.com Doris Coy, Owner

1992 1992

Knik Construction specializes in complex, logistically challenging projects in hard-toreach places. We’ve been building highways, roads, bridges, airstrips, breakwaters and more for over 40 years.

20-40 Traffic control services. 20-40

doris@northerndame.com

Alaska Business Monthly | March 2017www.akbizmag.com


Osborne Construction Company PO Box 97010 Kirkland, WA 98083 Phone: 425-827-4221 Fax: 425-828-4314 Pacific Pile & Marine 700 S. Riverside Dr. Seattle, WA 98108 Phone: 206-331-3873 Fax: 206-774-5958 Paug-Vik Development Corp. PO Box 429 Naknek, AK 99633 Phone: 907-258-1345 Fax: 907-222-1188 Price Gregory International 301 W. Northern Lights Blvd., Suite 300 Anchorage, AK 99503 Phone: 907-278-4400 Fax: 907-278-3255 PRL Logistics, Inc. 421 W. First Ave., Suite 250 Anchorage, AK 99501 Phone: 907-261-9440 Fax: 907-261-9441 Pruhs Construction 2193 Viking Dr. Anchorage, AK 99501 Phone: 907-279-1020 Fax: 907-279-1028 R H Development LLC PO Box 32403 Juneau, AK 99803 Phone: 907-790-4146 Fax: 907-790-4147 Roger Hickel Contracting, Inc. 11001 Calaska Cir. Anchorage, AK 99515 Phone: 907-279-1400 Fax: 907-279-1405 Spinell Homes, Inc. 1900 W. Northern Lights Blvd., Suite 200 Anchorage, AK 99517 Phone: 907-344-5678 Fax: 907-344-1976 STG Incorporated 11710 S. Gambell St. Anchorage, AK 99515 Phone: 907-644-4664 Fax: 907-644-4666

YEAR FOUNDED / ESTABLISHED IN ALASKA

George Osborne Jr., Pres. occ@osborne.cc osborne.cc Wil Clark, CEO info@pacificpile.com pacificpile.com Maurice Labrecque, GM info@pdcnaknek.com pdcnaknek.com Robert Stinson, Sr. VP

WORLDWIDE / ALASKA EMPLOYEES

BUSINESS DESCRIPTION

1987 1987

53 10

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

2008 2009

120 20

1996 1996

7 7

Pacific Pile & Marine is a heavy civil marine contractor. Our portfolio includes waterfront structures such as marinas and breakwaters; dredging and capping; sheet pile shoring; cofferdams; rock sockets and anchors; drilling; marine demolition; driven and drilled pile; and a host of other services. Rural general contracting and environmental services.

1974 1974

1,500 Pipeline, power, heavy industrial construction, EPC and consulting services. Infrastructure 300 construction services provider.

pricegregory.com Ron Hyde, Pres./CEO info@pacrimlog.com pacrimlog.com Dana Pruhs, CEO dana@pruhscorp.com pruhscorp.com Richard Harris, Mng. Member admin@rhdalaska.net rhdalaska.net Mike Shaw, Pres. contact@rhcak.com rogerhickelcontracting.com Charles Spinelli, Pres. spinell@spinellhomes.com spinellhomes.com Brennan Walsh, Pres.

2002 2002

44 44

1958 1958

150 150

1992 1992

5 5

Residential and light commercial construction. Real Estate Development. All aspects of construction, Land Acquisition and Development.

1995 1995

60 60

General contractor; commercial construction vertical and civil work.

1987 1987

24 24

General contractor-residential and light commercial construction.

1991 1991

100 100

Rural infrastructure construction, renewable energy systems ,tower construction, power generation and distribution facilities, pile foundations, bulk-fuel systems, waterfront projects, and telecommunications.

info@stgincorporated.com stgincorporated.com

PRL is Alaska-Owned and Operated with a high commitment to Safety. From expediting to your most complex, remote logistics challenges, PRL provides scalable logistics solutions worldwide to meet your logistics needs and ensure project success. We specialize in Alaska, the Lower 48, and beyond. Heavy civil contractor, roads, airports, site work, underground utilities, industrial.

LOWER RATES = LOWER MONTHLY PAYMENTS Alaska USA can help ensure your interest rates are where they need to be. Get a loan for everything your business needs. Or, refinance a loan and lock in a great rate. Contact a loan officer today!

alaskausa.org | (877) 646-6670 www.akbizmag.com

March 2017 | Alaska Business Monthly

101

2017 CONSTRUCTION DIRECTORY

COMPANY TOP EXECUTIVE


BUILDING ALASKA SPECIAL SECTION

COMPANY TOP EXECUTIVE

Swalling Construction Co. PO Box 101039 Anchorage, AK 99510 Phone: 907-272-3461 Fax: 907-274-6002 The Superior Group, Inc. PO Box 230387 Anchorage, AK 99523 Phone: 907-344-5011 Fax: 907-344-5094 Turnagain Marine Construction 8241 Dimondhook Dr., Unit A Anchorage, AK 99507 Phone: 907-261-8960 Tutka LLC 2485 E. Zak Cir., Suite A Wasilla, AK 99654 Phone: 907-357-2238 Fax: 907-357-2215 UNIT COMPANY 620 E. Whitney Rd. Anchorage, AK 99501 Phone: 907-349-6666 Fax: 907-522-3464 Watterson Construction Co. 6500 Interstate Cir. Anchorage, AK 99518 Phone: 907-563-7441 Fax: 907-563-7222

YEAR FOUNDED / ESTABLISHED IN ALASKA

Michael Swalling, Pres. mswalling@swalling.com swalling.com Teri Mentzer, Pres. tmentzer@corp-tsgi.com superiorpnh.com Jason Davis, Pres. jdavis@turnagain.build turnagain.build John Sommer, P.E./Member john@tutkallc.com tutkallc.com Michael J. Fall, Pres. info@unitcompany.com unitcompany.com Bill Watterson, Pres.

WORLDWIDE / ALASKA EMPLOYEES

BUSINESS DESCRIPTION

1947 1947

50 50

Specializing in pile driving, bridge building, dock construction, concrete restoration, industrial coatings and other heavy, civil construction services.

1964 1964

200 200

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

2014 2014

35 35

1999 1999

Turnagain Marine specializes in complex heavy marine construction projects that include large diameter socketing, rock anchors, offshore mooring & heavy lift requirements. Over the last decade, their management team has delivered over 50 design-build and hard bid projects from Ketchikan to Nome. 10-40 WBE/DBE, EDWOSB/WOSB, HUBZone, General Contractor (roads, bridges, culverts), site 10-40 work, environmental cleanup and consulting, SWPPPs, NALEMP/IGAP grant management.

1977 1977

25-75 Commercial General Contractor involved in all types of building construction including 25-75 deign-build, construction management and design-assist.

1981 1981

119 119

Kendall Audi Volkswagen Porsche; Diamond Animal Hospital; Ft Greely MEB1-Missile Field #1 (nearly complete).

bwatterson@wccak.com wattersonconstruction.com

ELECTRICAL CONTRACTORS COMPANY TOP EXECUTIVE

Anchor Electric 5362 Commercial Blvd. Juneau, AK 99801 Phone: 907-780-3690 Fax: 907-780-3692 Arctic Energy Inc. PO Box 220110 Anchorage, AK 99522 Phone: 907-382-7772 Delta Constructors LLC 3000 C St., Suite 202 Anchorage, AK 99503 Phone: 907-771-5800 Fax: 907-771-5911 HotWire LLC 5451 Laona Dr. Anchorage, AK 99518 Phone: 907-792-2400 Fax: 907-278-8769 Little Susitna Construction Co. 821 N St., Suite 207 Anchorage, AK 99501 Phone: 907-274-7571 Fax: 907-277-3300 New Horizons Telecom, Inc. 901 Cope Industrial Way Palmer, AK 99645 Phone: 907-761-6000 Fax: 907-761-6001 Siemens Industry Inc. 5333 Fairbanks St., Unit B Anchorage, AK 99518 Phone: 907-563-2242 Fax: 907-563-6139 TecPro Ltd. 816 E. Whitney Rd. Anchorage, AK 99501 Phone: 907-348-1800 Fax: 855-348-1830

YEAR FOUNDED / ESTABLISHED IN ALASKA

Bill Shattenberg, Owner Brian@anchoralaska.com anchoralaska.com Greg Porter, Pres. gporter@arcticenergyalaska.com arcticenergyalaska.com Ed Gohr, CEO info@deltaconstructors.net deltaconstructors.net Gundar Clemeson, GM info@hotwirellc.com hotwirellc.com Dominic Lee, Owner littlesu@ak.net littlesu.com Leighton Lee, CEO info@nhtiusa.com nhtiusa.com Leverette Hoover, GM AK leverette.hoover@siemens.com siemens.com Cynthia Saunders, Pres. info@tecpro.com TecPro.com

WORLDWIDE / ALASKA EMPLOYEES

BUSINESS DESCRIPTION

1982 1982

10 10

Industrial and commercial electrical wiring.

2012 2012

5 5

Founded in 2012, Arctic Energy Inc provides Combined Heat and Power energy solutions and Distributed Generation throughout Alaska and the Pacific Northwest.

2007 2007

600 96

1960 1960

250 250

1980 1980

8 8

Delta Constructors specializes in Construction Management (estimating, planning, scheduling and project execution) and direct hire construction for structural, piping, mechanical, electrical and instrumentation disciplines, in support of Up & Mid-Stream Oil and Gas development. Full service electric and communications contracting, including outside electric, inside electric and communications solutions for industrial, commercial, and institutional markets. Pre-construction, general contracting, specialty sub-contracting, and maintenance services provided throughout Alaska. A general, mechanical and electrical contractor. Architects, civil, mechanical and electrical engineers, licensed in twelve states. Construction project management. Importer, exporter and global project consultation.

1978 1978

75+ 75+

General, Electrical and Engineering Contractor with emphasis in Telecommunications. In-house engineering, installation and project management services for urban and remote communications facilities, OSP and ISP cabling as well as electrical and communications equipment installation and integration. 1849 350,000 Energy Services Company (ESCO)/Total Building Integrator: to include Building Automa1982 100 tion/Energy Management control systems, fire alarm, HVAC mechanical systems, security (card access, CCTV, intrusion, etc.), audio and video solutions and mass notification systems. 1997 25 TecPro offers electrical contracting services, UL Listed industrial control system integra1997 25 tion, and security integration services (video, access, alarm). Specialties include SCADA and PLC design, fabrication, installation, and programming.

HEAVY EQUIPMENT DEALERS COMPANY TOP EXECUTIVE

Airport Equipment Rentals 1285 Van Horn Rd. Fairbanks, AK 99707 Phone: 907-456-2000 Fax: 907-457-7609 Alaska Crane 11900 S. Gambell St. Anchorage, AK 99515 Phone: 907-522-9004 Fax: 907-522-9047 Construction Machinery Industrial, LLC 5400 Homer Dr. Anchorage, AK 99518 Phone: 907-563-3822 Fax: 907-563-1381 Craig Taylor Equipment 733 Whitney Rd. Anchorage, AK 99501 Phone: 907-276-5050 Equipment Direct, Inc. PO Box 425 Willow, AK 99688 Phone: 907-696-7375 Fax: 907-696-7375

102

YEAR FOUNDED / ESTABLISHED IN ALASKA

Jerry Sadler, Owner/Pres. aerinc4@alaska.net airportequipmentrentals.com Brennan Walsh, Pres. Info@alaskacrane.net alaskacrane.net Ken Gerondale, Pres./CEO o.prestwick@cmiak.com cmiak.com Chris Devine, Pres./CEO facebook.com/craigtaylorequipment craigtaylorequipment.com L. Butera, Pres.

WORLDWIDE / ALASKA EMPLOYEES

BUSINESS DESCRIPTION

1986 1986

100 100

Largest Industrial/Construction heavy equipment rental company in Alaska. Providing rentals, sales and service for the construction and oil & gas industries.

2001 2001

15 15

Operated Crane Services, Lift Planning, and Heavy Lift Specialists.

1985 1985

108 108

Construction and mining equipment sales, rentals, service, and parts.

1954 1954

62 62

1985 1985

1 1

Factory authorized dealer for: Doosan large excavators, loaders & articulated trucks; Bobcat mini-loaders & excavators; Dynapac compaction rollers; Fecom land clearing attachments & carriers. Providing sales, rentals, parts, and service. Alaskan owned and operated, serving AK for more than 60 years. Construction equipment sales, parts, rentals. Morooka all-terrain dump carriers specialty, 14K GWV tilt trailers, Japan origin machine parts.

sales@eqdirect.com eqdirect.com

Alaska Business Monthly | March 2017www.akbizmag.com


Equipment Source, Inc. 1919 Van Horn Rd. Fairbanks, AK 99701 Phone: 888-868-9049 Fax: 907-458-7180 Haltness Equipment LLC 205 Meals Ave. Valdez, AK 99686 Phone: 907-835-5418 Fax: 907-835-3694 Loken Crane, Rigging, and Transport LLC 5400 Eielson St. Anchorage, AK 99518 Phone: 907-868-8880 N C Machinery 6450 Arctic Blvd. Anchorage, AK 99518 Phone: 907-786-7500 Fax: 907-786-7580 North Star Equipment Services 790 Ocean Dock Rd. Anchorage, AK 99501 Phone: 907-263-0120 Fax: 907-272-8927 Totem Equipment & Supply, Inc. 2536 Commercial Dr. Anchorage, AK 99501 Phone: 907-276-2858 Fax: 907-258-4623 TrailerCraft | Freightliner of Alaska 222 W. 92nd Ave. Anchorage, AK 99515 Phone: 907-563-3238 Fax: 907-561-4995 Washington Crane & Hoist 651 E. 100th Ave., Unit B Anchorage, AK 99515 Phone: 907-336-6661 Fax: 907-336-6667 West-Mark Service Center-Fairbanks 3050 Van Horn Rd. Fairbanks, AK 99709 Phone: 907-451-8265 Fax: 907-451-8273 Yukon Equipment, Inc. 2020 E. Third Ave. Anchorage, AK 99501 Phone: 800-478-1541 Fax: 907-258-0169

www.akbizmag.com

YEAR FOUNDED / ESTABLISHED IN ALASKA

Nick Ferree, Mgr. NickF@equipsrc.com equipmentsourceinc.com Erik Haltness, Mgr.

WORLDWIDE / ALASKA EMPLOYEES

2000 2000

50 25

1987 1987

10 10

2014 2014

5 5

BUSINESS DESCRIPTION

ESI designs, develops, & builds quality, innovative worksite products for the oil, mining, construction, & agriculture industries. All of our products are built Arctic tough, built to last, & tested in challenging environments. We also specialize in Kubota Tractors. SalesService-Parts-Rentals. Equipment Rentals and Sales.

haltness.com Tyler Loken info@lokencrane.com lokencrane.com John J. Harnish, Pres./CEO jstubben@ncmachinery.com ncmachinery.com Jeff Bentz, Pres. scottv@northstarak.com northstarak.com Mike Huston, VP sales@toteminc.com toteminc.com Lee McKenzie, Pres./Owner sales@trailercraft.com trailercraft.com Mike Currie, VP SDick@washingtoncrane.com washingtoncrane.com Scott Vincent, CEO wwalker@west-mark.com west-mark.com Charles Klever, Pres. info@yukoneq.com yukoneq.com

Full service mobile crane, rigging, and transport operations.

1926 1926

1,116 Cat machine sales, parts, service, and rental. Cat engines for marine, power generation, 254 truck, petroleum, and industrial applications. Sales and rental of Cat and other preferred brands of rental equipment and construction supplies.

1950 1950

25-50 Stevedore, Marine logistics, specializing in providing crane and equipment operated, rental 25-50 solutions. We also offer state of the art ABI Mobil Ram machines, for large diameter drilling, with vibratory and hammer attachments built for driving pile. We are DOT approved for bridge foundation work. 20 Totem heaters, Frost Fighter heaters, Sure Flame heaters, Sany Excavators, Terex, Mustang, 20 Rhino Sky Jack, Clemco, Wacker, MultiQuip, Honda, Alkota, Genie, Vector,Wyco, Weber, Wacker, Biljax, Blast-pro, Toro/Dingo, Munter heaters.

1961 1961

1969 1969

50 50

Parts, sales and service for trucks, tractors, trailers, Sprinters, transport equipment, snow plows and sanders.

1975 2008

42 7

1967 2009

220 12

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

1945 1945

40 40

Sales, service, parts, rental and lease equipment, including Case, Trail King, Elgin, Vactor, Oshkosh, Etnyre, Monroe, Trackless, and Snow Dragon. Anchorage, Fairbanks, and Wasilla locations. A subsidiary of Calista Corp.

March 2017 | Alaska Business Monthly

103

2017 CONSTRUCTION DIRECTORY

COMPANY TOP EXECUTIVE


BUILDING ALASKA SPECIAL SECTION

COMPANY TOP EXECUTIVE

ABC Inc. 401 Driveway St. Fairbanks, AK 99701 Phone: 907-457-2221 Fax: 907-457-5045

YEAR FOUNDED / ESTABLISHED IN ALASKA

1995 1995

Susan Ellison, Pres.

WORLDWIDE / ALASKA EMPLOYEES

21 21

info@akabc.com akabc.com

BUSINESS DESCRIPTION

General contractor specializing in energy efficient remodeling and product sales. Seamless siding and gutters, windows, doors, all remodeling. Material Sales include: Commercial doors, windows, store front, metal siding, metal flashing, door hardware, window wells.

COMMERCIAL & INDUSTRIAL SUPPLIERS COMPANY TOP EXECUTIVE

Ace Supply, Inc. 2425 E. Fifth Ave. Anchorage, AK 99501 Phone: 907-277-4113 Fax: 907-277-4112 AirSide Solutions, Inc. 2222 West Valley Hwy. N., Suite 140 Auburn, WA 98001 Phone: 253-833-6434 Fax: 253-833-6825 Alaska Concrete Casting 5761 Concrete Way Juneau, AK 99801 Phone: 907-780-4225 Fax: 907-780-4230 Alaska Dreams, Inc. 2081 Van Horn Rd., #2 Fairbanks, AK 99701 Phone: 907-455-7712 Fax: 907-455-7713 Alaska Industrial Hardware, Inc. 2192 Viking Dr. Anchorage, AK 99501 Phone: 907-276-7201 Fax: 907-258-3054 Alaska Pump & Supply, Inc. 261 E. 56th Ave., Bldg A Anchorage, AK 99518 Phone: 907-563-3424 Fax: 907-562-5449 Alaska Roof Coatings 3510 Hazen Cir. Anchorage, AK 99515-2370 Phone: 907-952-0944 Alaska Rubber & Rigging Supply 5811 Old Seward Hwy. Anchorage, AK 99518-1479 Phone: 907-562-2200 Fax: 907-561-7600

YEAR FOUNDED / ESTABLISHED IN ALASKA

Erick Smith, Pres.

WORLDWIDE / ALASKA EMPLOYEES

BUSINESS DESCRIPTION

1962 1962

4 4

Petroleum handling equipment for Commercial, Industrial and Aviation Industries. Pumps, Meters, Reels, Filters, Tank Monitors as well as Fuel Testing Equipment.

1978 1988

10 0

AirSide Solutions is a full line provider of Airfield and Heliport Lighted Navigation systems, Technical Services, and logistics support to the aviation market in Alaska.

2004 2004

4 4

1994 1994

30 30

Precast concrete supplier, furnishing utility, traffic and retaining wall products as well as custom casting, building panels and foundation systems. Rebar fabrication and supply house stocking 20’ and 40’ bar in #2 through #10 bar. Detailing, bending and cage tying services. Design, sales and construction of fabric covered structures and pre-engineered metal buildings.

1959 1959

200 200

Industrial/Constructions supplies; power tools; hand tools; safety; fasteners; maintenance and janitorial; material handling; outerwear.

Erick@akpetro.com Rick Lafferty, VP/Region Mgr. rlafferty@wsminc.biz adb-air.com Dave Hanna, Mng. Member alaskaconcretecasting@gci.net Meini Huser, Pres. sales@alaskadreamsinc.com alaskadreamsinc.com Terry Shurtleff, Pres./CEO info@aih.com aih.com Terry Gorlick, Pres. AK Rtng Equip. sales@alaskapump.com alaskapump.com Tyler Moor, Owner AlaskaRoofCoatings@gmail.com alaskaroofcoatings.com Janeece Higgins, CEO

1908 1978

2013 2013

1981 1981

info@alaskarubber.com alaskarubber.com

3,500 Serving industrial, municipal and commercial customers, Alaska Pump (a DXP Company) is 30 at the leading edge of technology providing the best rotating equipment, bearing and PT, MROP, safety products, expert service and engineered solutions from skids to complete modules. Field services are available. 15 Spray on silicone membrane coating for your flat, low-rise or metal roofing. 15

111 60

AK’s largest supplier of hydraulic & industrial hose assemblies & associated products; specialize in fabrication/testing of wire rope, chain & synthetic slings for overhead lifting & rigging; supply & service fueling, lubrication & pressure washing equip, hydraulic pumps, motors, cylinders & valves.

MARINE TRANSPORT SOLUTIONS Serving the Arctic and Northwest since 1982

With a diverse fleet of vessels, we provide our customers with valuable, comprehensive marine solutions. We offer a wide range of flexible services to the federal government, petroleum & construction industries and to coastal communities in the Arctic and Pacific Northwest. • ABS certified • Shallow draft vessels • Marine Cargo Transportation • Barge & Lighterage Services • Oilfield Support Services • Logistics A M E M B E R O F T H E U K P E AĠ V I K I Ñ U P I AT CO R P O R AT I O N FAM I LY O F CO M PA N I E S 104

• Vessel Leasing & Operations

UIC Marine Services 4025 Delridge Way SW, Suite 160, Seattle, WA 98106 (800) 347-0049 www.bowheadtransport.com

Alaska Business Monthly | March 2017www.akbizmag.com


Alaska Textiles 620 W. Fireweed Ln. Anchorage, AK 99503 Phone: 907-265-4880 Fax: 907-265-4850 All Steel 1974 Livengood Ave. Fairbanks, AK 99701 Phone: 907-479-6002 Fax: 907-479-7662 Altrol Heating, Cooling & Plumbing 2295 Van Horn Rd. Fairbanks, AK 99701 Phone: 907-452-8680 Fax: 907-452-6778 Anchorage True Value Hardware 9001 Jewel Lake Rd., # 5 Anchorage, AK 99502 Phone: 907-248-9211 Fax: 907-248-6976 Architectural Supply Co., Inc. 3699 Springer St. Anchorage, AK 99503 Phone: 907-561-1919 Fax: 907-562-5540 Arctic Controls, Inc. 1120 E. Fifth Ave. Anchorage, AK 99501 Phone: 907-277-7555 Fax: 907-277-9295 Arctic Home Living 1698 Airport Way, #1 Fairbanks, AK 99701 Phone: 907-451-8717 Fax: 907-451-8716 ARCTOS LLC 130 W. Int’l Airport Rd., Suite R Anchorage, AK 99518 Phone: 907-440-4093 Fax: 866-532-3915 ATCO Structures & Logistics Ltd. 425 G St. Anchorage, AK 99501 Phone: 907-677-6983 Fax: 907-677-6984 Aurora Construction Supply, Inc. PO Box 83569 Fairbanks, AK 99708 Phone: 907-452-4463 Fax: 907-456-3414

www.akbizmag.com

YEAR FOUNDED / ESTABLISHED IN ALASKA

Clif Burnette, Pres. info@alaskatextiles.com alaskatextiles.com; korbana.com Michael Kralman, Pres. allsteel.info@gmail.com steelsthedeal.com David Bridges, Pres./GM dbridges@altrolinc.com altrolinc.com Tim Craig anchoragehardware@truevalue.net truevalue.com Jennifer Mattingly, AHC, Pres.

WORLDWIDE / ALASKA EMPLOYEES

BUSINESS DESCRIPTION

1978 1978

25 25

We are the number one supplier of FRC Apparel, to include our very own Korbana Protective Apparel, in Alaska and North Dakota, and around the world. With a highly trained sales staff we make customer service and quality control our priorities.

1999 1999

10 10

Manufacture roofing, light gauge steel building packages, trusses, stud, track, soffit, gutters Plants located in Fairbanks and Wasilla, AK.

1982 1982

27 27

Heating, ventilation, air conditioning, plumbing, sheet metal, appliance, & refrigeration contracting & service company.

1949 1949

24 24

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

1977 1977

7 7

Supplier of Division 8 & 10-commercial doors, frames, hardware, toilet partitions, and toilet accessories.

1985 1985

4 4

1998 1998

30 30

Arctic Controls Inc. is Alaska’s leading expert in valves, flow meters, actuators, instrumentation, and process controls for commercial oil, gas, and water management. Providing professional expertise for all commercial applications and can assist you with estimates and recommendations. Hot Tub sales, service and supplies. Water treatment systems design sales and service.

2007 2007

7 7

Jennifer@archialaska.com Scott Stewart, Pres. customerservice@arcticcouriers.com arcticcontrols.com Robert Richards arctichomeliving.com Randy Pysher, Pres./Bus. Mgr. info@arctosak.com arctosak.com Steve Lockwood, Pres. atco@atcosl.com atcosl.com R L “Dick” Engebretson, Pres.

1947 2009

1978 1984

Full service Environmental Regulatory Compliance Contractor, project permitting, field compliance services, permit and compliance management, Oil Spill, SPCC, FRP Plans, plan audits, full range spill prevention & response planning services, response management & support. Heath and Safety management. 1,500 ATCO Structures & Logistics offers complete infrastructure solutions to customers 2 worldwide, including remote work force housing, portable offices and trailers, innovative modular facilities, construction, site support services, operations support, catering and noise reduction technologies. 1 Specialty items in Division 10. 1

aurorasupply@gci.net

March 2017 | Alaska Business Monthly

105

2017 CONSTRUCTION DIRECTORY

COMPANY TOP EXECUTIVE


BUILDING ALASKA SPECIAL SECTION

COMPANY TOP EXECUTIVE

Brown’s Electric 1415 Spar Ave. Anchorage, AK 99501 Phone: 907-277-5445 Fax: 907-277-5446 C & R Pipe and Steel, Inc. 401 E. Van Horn Rd. Fairbanks, AK 99701 Phone: 907-456-8386 Cabinet Fever, Inc. 8220 Petersburg St., Suite 1 Anchorage, AK 99507 Phone: 907-349-4871 Fax: 907-349-4891 Carberry Associates PO Box 242563 Anchorage, AK 99524 Phone: 907-227-1598 Fax: 907-345-2497 Delta Leasing LLC 8101 Dimond Hook Dr. Anchorage, AK 99507 Phone: 907-771-1300 Fax: 907-771-1380 Door Systems of Alaska, Inc. 18727 Old Glenn Hwy. Chugiak, AK 99567 Phone: 907-688-3367 Fax: 907-688-3378 Equipment Source, Inc. 1919 Van Horn Rd. Fairbanks, AK 99701 Phone: 888-868-9049 Fax: 907-458-7180 Giant Don’s Flooring America 7725 Old Seward Hwy. Anchorage, AK 99518 Phone: 907-522-5775 Fax: 907-522-7425 Glass Sash & Door Supply 500 E. Ship Creek Ave. Anchorage, AK 99501 Phone: 907-276-1655 Fax: 907-276-6712 Hayden Electric Motors, Inc. 4191 Old Seward Hwy. Anchorage, AK 99503 Phone: 907-561-1073 Fax: 907-561-5867

YEAR FOUNDED / ESTABLISHED IN ALASKA

Chip Brown, Pres. chipb@brownselectric.com Brownselectric.Com Dennis Wilfer, Pres. lindsayj@crpipe.net crpipesteel.net Kurt Echols, Pres. kurt@cabinetfever.net cabinetfever.net Tom Carberry, Owner

WORLDWIDE / ALASKA EMPLOYEES

BUSINESS DESCRIPTION

1959 1959

53 53

For all electrical and lighting needs.

1992 1992

45 45

For the largest inventory of quality new and used steel pipe (1/2”-60”), aluminum, structural steel, angle, channels, beams, rebar, and culvert products statewide, think of C & R Pipe and Steel! Call us for all your needs!

1999 1999

6 6

1994 1994

1 1

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

2002 2002

40 40

2000 2000

15 15

2000 2000

50 25

1975 1975

18 18

1952 1952

4 4

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

1959 1959

10 10

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

carberryassociates@acsalaska.net Rudi von Imhof, Pres. info@deltaleasing.com deltaleasing.com Beth Bergh, Owner beth@doorsystemsak.com doorsystemsak.com Nick Ferree, Mgr. NickF@equipsrc.com equipmentsourceinc.com Dave Heafer, Owner facebook.com/Giantdons/ giantdons.com Tom Dooley AHC/CDC, VP info@glasssashanddoor.com glasssashanddoor.com Roger Saunders, VP/GM

Specialized leasing of fleet trucks, SUVs, vans, & shuttle buses, as well as construction & mining equipment, oil & gas equipment. GM, Dodge & International warranty repair center. Alaskan-owned. Deadline driven. Results oriented. Anchorage/Kenai/Prudhoe Bay/ Fairbanks/Remote Alaska. Commercial and industrial doors, Cornell rolling doors, grilles, shutter. Fire-rated rolling door and accordion fire-rated side folding partitions. Modernfold Flat wall partitions, Accordion Partitions, Skyfold room separation. McGuire dock equipment. EPD/Renlita Hangar doors. Blast-resistant doors. ESI designs, develops, & builds quality, innovative worksite products for the oil, mining, construction, & agriculture industries. All of our products are built Arctic tough, built to last, & tested in challenging environments. We also specialize in Kubota Tractors. SalesService-Parts-Rentals. Carpet, Hardwood, Luxury Vinyl, Laminate, Tile, Cork, Window Fashions, Cabinets, Countertops. Giant Don’s Flooring America has been owned and operated in Alaska by Alaskans for more than 40 years. We have Alaskans needs in our hearts!

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

EXPERT HANDLING:

Alaska’s Premier Freight Provider 106

For a rate quote, contact us at rate@spanalaska.com • 1.800.257.7726 www.spanalaska.com

Alaska Business Monthly | March 2017www.akbizmag.com


Independent Lift Truck of Alaska 1200 E. 70th Ave. Anchorage, AK 99518 Phone: 907-344-3383 Fax: 907-344-8366 Lifewater Engineering Company 1936 Donald Ave. Fairbanks, AK 99701 Phone: 907-458-7024 Fax: 907-458-7025 Magic Metals Inc. 530 E. Steel Lp. Palmer, AK 99645 Phone: 907-746-7800 Fax: 907-746-7802 MFCP Jackovich 1716 N. Post Rd. Anchorage, AK 99501 Phone: 907-277-1406 Fax: 907-258-1700 Modular Transportable Housing 3116 Commercial Dr. Anchorage, AK 99501 Phone: 877-929-9902 Motion Industries, Inc. 53341 Sandy Ln., #A Kenai, AK 99611 Phone: 907-283-4452 Motion Industries, Inc. 1895 Van Horn Rd., Unit A Fairbanks, AK 99701 Phone: 907-452-4488 Fax: 907-456-8840 N C Machinery 6450 Arctic Blvd. Anchorage, AK 99518 Phone: 907-786-7500 Fax: 907-786-7580 Northland Wood Products 4000 S. Cushman St. Fairbanks, AK 99701 Phone: 907-452-4000 Fax: 907-452-1391 Northland Wood Products 6841 Brayton Dr. Anchorage, AK 99507 Phone: 907-452-4000 Fax: 907-452-1391

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YEAR FOUNDED / ESTABLISHED IN ALASKA

Wayne Dick, Pres. keri.ilt@gci.net iltalaska.com Bob Tsigonis, Pres., PE Bob@LifewaterEngineering.com LifewaterEngineering.com Joan Tolstrup, Pres. magicmetals@mtaonline.net magicmetalsinc.com Peter Grimes, Marketing Mgr. Pgrimes@mfcpinc.com mfcp.com Stacy Stoltenow, VP office@mthousing.net mthousing.net Matt Bailey, Anch. Branch Mgr. MiMarketing@motionindustries.com motionindustries.com Nick Morgan, Fbx. Branch Mgr. MiMarketing@motionindustries.com motionindustries.com John Harnish, Pres./CEO jstubben@ncmachinery.com ncmachinery.com Jason Knoles, Sales/Ops Mgr. sales@northlandwood.com northlandwood.com James Enochs, Anch. Mgr. northlandwood@acsalaska.net northlandwood.com

WORLDWIDE / ALASKA EMPLOYEES

1982 1982

15 15

1998 1998

10 10

1981 1981

8 8

1969 1969

1995 1995

1970 2010

1970 2010

1926 1926

BUSINESS DESCRIPTION

Authorized Dealers and repair centers for Advance floor care machines. CAT, Jungheinrich, Mitsubishi, Manitou, Maximal, Bendi and DREXEL forklifts; GEHL and Wacker Neuson construction equipment. Full parts, sales and service for most all makes and models of equipment. Design and Manufacture of sewage treatment plants for man camps, homes, and lodges in the most extreme environments and remote places. Manufacturing high performance Rough Duty plastic jet boats and rugged work boats. Alaska’s leading plastic fabricator.

Magic Metals, Inc. manufactures a variety of roofing and architectural metal products as well as custom trim and accessories. We are open to retail and wholesale customers and offer great customer service and quick turn around. Perforation on panels and trim is available. 360 Serving Alaska for 47 years, we offer products and services to the mining, petroleum, and 24 construction industries in Fairbanks and Anchorage. MFCP provides Parker Hannifin fluid power components and all other types of industrial and hydraulic hoses, fittings, and accessories. 25 Mining/Logging Camps, Construction Camps, Construction Offices, Jobsite Engineer1 ing Units, Industrial Facilities, Laboratories, Field Offices, Dormitory buildings, Office Buildings, Urban Housing, Shower and Locker Room Facilities, Medical Buildings, Exercise Buildings, Classrooms, Survival Units. 6,343 A leading distributor of industrial maintenance, repair and operation (MRO) replacement 7 parts (over 5.9 million parts), including bearings, power transmission, hydraulic/pneumatic components, linear, hydraulic/industrial hose, industrial and safety supplies, seals, process pumps & material handling. 6,343 A leading distributor of industrial maintenance, repair and operations (MRO) replacement 7 parts (over 5.9 million parts), including bearings, power transmission, hydraulic/pneumatic components, linear, hydraulic/indus. hose, indus. & safety supplies, process pumps, seals & material handling. 1,116 Cat machine sales, parts, service, and rental. Cat engines for marine, power generation, 254 truck, petroleum, and industrial applications. Sales and rental of Cat and other preferred brands of rental equipment and construction supplies.

1965 1965

33 33

Building supplier. Produce WWPA-graded surfaced lumber, rough lumber, large lumber and house logs. Stocks materials to fulfill all building needs.

1965 1965

33 33

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

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2017 CONSTRUCTION DIRECTORY

COMPANY TOP EXECUTIVE


BUILDING ALASKA SPECIAL SECTION

COMPANY TOP EXECUTIVE

Polar Supply Co. 300 E. 54th Ave. Anchorage, AK 99518-1230 Phone: 907-563-5000 Fax: 907-562-7001 Rain Proof Roofing 2201 E. 84th Ct. Anchorage, AK 99507 Phone: 907-344-5545 Fax: 907-349-3386 Rivers Wood Products 1780 Richardson Hwy. North Pole, AK 99705 Phone: 907-488-0888 Fax: 907-488-1543 Sherwin-Williams Paints and Coatings 35444 Kenai Spur Hwy. Soldotna, AK 99669 Phone: 907-262-4674 Fax: 907-262-4497 Spenard Builders Supply, Inc. 300 E. 54th Ave., Suite 201 Anchorage, AK 99518 Phone: 907-261-9105 Fax: 907-261-9142 Statewide Door & Glass 221 E. Ship Creek Ave. Anchorage, AK 99501 Phone: 907-562-2074 Fax: 907-562-1803 Swagelok Alaska 341 E. 56th Ave. Anchorage, AK 99518 Phone: 907-563-5630 Fax: 907-563-4721 Totem Equipment & Supply, Inc. 2536 Commercial Dr. Anchorage, AK 99501 Phone: 907-276-2858 Fax: 907-258-4623 West-Mark Service Center-Fairbanks 3050 Van Horn Rd. Fairbanks, AK 99709 Phone: 907-451-8265 Fax: 907-451-8273 YFPS & Yukon Industrial 5601 Silverado Way Anchorage , AK 99518 Phone: 907-563-3608

YEAR FOUNDED / ESTABLISHED IN ALASKA

Ed Waite, Sr. VP dshooner@polarsupply.com polarsupply.com Pat Reilly, Pres. info@rainproofroofing.com rainproofroofing.com Doug Scherzer, GM doug@riverswoodproducts.com riverswoodproducts.com John Morikis , CEO bmichealbaughman@yahoo.com sherwin-williams.com Ed Waite, Sr. VP facebook.com/SpenardBuildersSupply sbsalaska.com Mike Hammer, Pres. hammer.statewide@gmail.com Statewidedoors.com Tarek Shiera, AK Branch Mgr. info@alaska.swagelok.com alaska.swagelok.com Mike Huston, VP sales@toteminc.com toteminc.com Scott Vincent, CEO wwalker@west-mark.com west-mark.com Matt Atkins , GM/VP sales@yukonfire.com yukonfire.com

1985 1985

1962 1962

WORLDWIDE / ALASKA EMPLOYEES

BUSINESS DESCRIPTION

8,000 Polar Supply is Alaska’s leading supplier of industrial products and construction materials. 600 Putting customer service first, Polar has consistently delivered for clients large and small. A Division of Spenard Builders Supply with locations in Anchorage, Fairbanks and Kenai. 104 104

1896 1978

We specialize in residential as well as commercial roofing and waterproofing, we have a full service sheet metal shop for all your metal needs. Re-roofs, new construction, shingles, shakes, metal, built-up roofing as well as single-ply. Located in Anchorage and Wasilla, we service the entire state. 5 Specialty siding, decking, and railing lumberyard. We supply contractors with stainless 5 steel braided wire rope that we make in our facility that puts Alaskans to work. We sell Alaska cedar, and Western Red Cedar for siding. We have the largest stock in Alaska for Vinyl siding and composite decking. 37,633 Paint and coating supplies. From home to boat, we have it all! 65+

1952 1952

8,000 Provides a full line of building materials and home-improvement products to fill the needs 600 of residential DIYers and commercial contractors.

1984 1984

1992 1992

25 25

1965 1965

10 10

1961 1961

20 20

Totem heaters, Frost Fighter heaters, Sure Flame heaters, Sany Excavators, Terex, Mustang, Rhino Sky Jack, Clemco, Wacker, MultiQuip, Honda, Alkota, Genie, Vector,Wyco, Weber, Wacker, Biljax, Blast-pro, Toro/Dingo, Munter heaters.

1967 2009

220 12

Liquid transportation tank trailer repair.

1978 1978

36 36

Fire Protection design build services, inspection, maint. and service of. Kidde, Ansul, DetTronics, Edwards / EST, Gamewell FCI, Amerex, CWSI Wireless Fire Alarm, Gas Detection Systems, Fire Alarm Systems, Suppression Systems, Kitchen Hood Systems, Inspections, 24hr/365 Emergency Service.

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

Proudly providing highly skilled manpower to mechanical contractors and bringing projects in ahead of schedule and under budget, since 1938.

ŠKen Graham Photography

United Association Plumbers & Steamfitters Union Local 367 108

Learn more about UA Local 367 and the mechanical contractors we work with by visiting www.ualocal367.org and www.amcaanc.com

Alaska Business Monthly | March 2017www.akbizmag.com


! n u g e b s a h g n Vo t i

Alaska Business Monthly’s

2017 Categories

Best Brewery Best Distillery Best Business Breakfast Best Bakery for Office Treats Best Coffee Shop for Business Meeting Best Business Lunch Best Catering for Meeting or Event Best Business Take-Out Best Business Dinner Best PR Event for Charity Best Alaskan Ad Campaign Best Corporate Citizen Best New Alaska Business Startup Best Customer Service Best Family Owned Business Best Convention or Tradeshow Best Travel Destination in Alaska Best Place to Work (Small—Under 25 Employees) Best Place to Work (Medium—26-250 Employees) Best Place to Work (Large—Over 250 Employees)

Help pick the Best of Alaska Business 2017 in 20 categories by taking our survey.

Vote at akbizmag.com/BestofAlaskaBusiness2017

Top three businesses in each category will be revealed in the July issue, featuring the Best of Alaska Business.


RIGHT MOVES US Senator Lisa Murkowski

US Senator Lisa Murkowski announced changes within her Washington, D.C. and Anchorage offices. Angelina Burney will be transitioning from State Scheduler in the Senator’s Anchorage office to the role of Office Manager in the Washington, D.C. office. Burney began working for Senator Murkowski in January 2013 as the State Scheduler and Administration Manager. Previously she had public service jobs in the State of Alaska in the Governor’s Office, Department of Commerce, and Alaska State Legislature. New hire Kennis Brady is taking over as State Scheduler in Anchorage. Brady, a life-long Alaskan, has a Master’s in Public Administration from UAA with an emphasis in Healthcare. She is active in many community organizations throughout Anchorage, including the Chamber of Commerce, Healthy Alaskans, United Way Emerging Leaders, Institute of the North, and Our Alaska, to name a few.

AECOM

AECOM has appointed Laura Young as Operations Manager. In this new role, Young will oversee AECOM’s operational team in Alaska, focusing on maximizing assets to complete current projects and developing new business opportunities. Young will also Young continue to oversee the engineering and technical services practice groups, while serving as the federal business development lead for Alaska as well. Young has been with AECOM since 1995.

Alaska Travel Adventures

Al aska Travel Adventure s , Inc. announced that Vice President and Chief Operating Officer Chris Meier has been appointed as President and CFO. Meier is a twenty-three-year veteran of Alaska Travel Adventures; he has served as Vice President and Meier COO since March 2009.

Credit Union 1

Credit Union 1 is pleased to introduce its new President/CEO, Paul Yang. An experienced leader within the credit union industry, Yang most recently served as CEO of University Credit Union in Los Angeles. Yang brings Yang

more than sixteen years of experience to his new position. Yang holds a bachelor’s degree in Engineering from UCLA and an MBA from Regis University with an emphasis in Finance and Accounting, as well as other professional certifications.

Serve Alaska

Serve Alaska welcomes Kathryn Abbot as its new Executive Director. Abbott comes to Serve Alaska from the United Way of Anchorage where she was a senior manager for the Education Impacts Partnerships team. She has also acted as a Serve Alaska commission member since March 2013. With almost a decade of professional experience in the field of volunteerism and national service, Abbot is passionate about developing partnerships to create innovative solutions for Alaska.

McCool Carlson Green

M c Co o l C a r l s o n G re e n (M CG) announces the appointment of Evelyn Rousso, AIA, LEED AP, as the newest member of the design team. Rousso has nearly thirty years of professional architecture experience including a decade as Principal at Northwind Rousso Architects in Juneau. Her breadth of experience fits well with the MCG team and includes many educational, institutional, and transportation projects. She looks forward to developing MCG’s senior and public housing lines of service.

Resource Data, Inc.

Resource Data, Inc. (RDI) has hired Trevor Evans as a Programmer/Analyst to their Anchorage Branch. Evans most recently worked for GeoNorth in many capacities over the past nine years, most recently as a project manager. Evans has his BS in Computer Science with a Math Minor from the University Evans of Alaska Anchorage. RDI has rehired Heather Koyuk as a Programmer/Analyst to their Juneau Branch. Koyuk has eight-plus years of experience working as a software engineer/programmer, and she previously worked in both the Anchorage and Juneau offices of RDI after graduKoyuk ating with a BS in Computer Science from the University of Alaska.

RDI has also hired Conor McCutcheon as a Sr. Systems Engineer to their Anchorage office. McCutcheon has a major in Chemistry and a minor in Computer Science from Vassar College in Poughkeepsie, New York. Most recently McCutcheon worked McCutcheon as a senior network engineer at the University of Iowa Hospital and Clinics.

Birch Horton Bittner & Cherot

Birch Horton Bittner & Cherot is pleased to announce that Sarah A. Badten and Kristy A. Garrett have joined the firm in its Anchorage office. Badten joined the firm January 1, 2017. Badten’s litigation practice has a primary focus on representing homeowner and condominium associations, as well as advising on contract and real estate disputes, creditor rights, secured transactions, landlord-tenant Badten law (landlords), employment law, and commercial litigation. Badten has been a partner/ member at Groh Eggers, LLC for the past four years and was an associate for the previous five years. Prior to joining Groh Eggers, Badten was an associate in the litigation department at Dunn Carney in Portland, Oregon, after receiving her JD from Willamette University College of Law in 2006. Garrett joined the firm November 21, 2016. Garrett’s transactional practice has a primary focus on real estate finance, commercial transactions, and corporate governance. Garrett practiced with the national firm of Dickinson Wright, PLLC in their Troy, Garrett Michigan, office as both an associate and Of Counsel for three years. Prior to returning to Dickinson Wright in 2014, she served as in-house counsel for TD Bank for seven years, representing her clients in the areas of real estate finance, regulatory compliance, corporate governance, and creditor’s rights law. She received her JD from Wayne State College of Law in 2006.

The Tatitlek Corporation

The Tatitlek Corporation announced the promotion of Dean Clowers to the role of President. Clowers is an accomplished executive with more than twenty-five years of industry experience with the company and other Alaska Native Corporations,

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Compiled by Tasha Anderson specializing in government services and construction operations. Prior to joining The Tatitlek Corporation in 2015, Clowers served as Afognak Native Corporation and Alutiiq, LLC’s executive VP. Prior to joining Afognak in 2005, Clowers was the senior VP of operations for Chugach Alaska Corporation.

Lane Powell

Multi-specialty law firm Lane Powell announced a new shareholder has been elected in their Anchorage office. Michael B. Baylous is a Chambers USA recognized litigator with a diverse practice involving numerous areas of law, including construction, employment, ERISA, insurance coverage, Alaska Native Corporation contracting, commercial real estate, Baylous deceptive business practices, consumer protection, trade secret, mortgage servicing, product liability, and personal injury. Baylous received his JD from the University of Denver Sturm College of Law and his BS from Pacific Lutheran University.

Hageland Aviation

Stu Greene has joined the Hageland Aviation Team as their new Director of Safety. Greene brings more than seventeen years of professional experience managing a wide range of activities from aviation operations to oil and gas logistics, aviation safety Greene management, and accident investigation and prevention. Greene received his bachelor’s degree from the University of Virginia in Charlottesville.

Waste Management

Waste Management Sustainability Services is proud to announce the hiring of two experienced environmental service professionals to join its team based in Anchorage. Michael Pearia joins the Waste Management team in Alaska as Operations Manager, WM Sustainability Services with more than twenty-five years in the waste and environmental services industry including environmental health & safety manager, sales manager, and transfer station manager. Pearia Aidan Vasquez, Project Manager, WM Sustainability Services, is the on-site project manager for the Greens Creek Mine in Juneau, where he is responsible for the management

of industrial, hazardous, non-hazardous wastes, and recyclables associated with mining operations. Vasquez, over the course of fifteen years, has led operations across varied markets, which include five years in the environmental sustainability industry as an environmental specialist, Vasquez field supervisor, and facility manager.

She received a Master of Arts in Geography in 2016 from Kansas State University, Manhattan, Kansas; a Master of Science in Geology and Geophysics in 2006 from Missouri University of Science and Technology, Rolla, Missouri; and a Bachelor of Science in Environmental Science in 2000 from the U.S. Military Academy, West Point, New York, from where she also received her commission into the U.S. Army Corps of Engineers.

Alaska USA Federal Credit Union

Alaska USA Federal Credit Union announced today that President and CEO Bill Eckhardt will be retiring in May 2017. Geoff Lundfelt, currently Executive Vice President, has been selected to succeed Eckhardt. Lundfelt, began his career at Alaska USA nearly twenty years Lundfelt ago as a part-time teller before working his way up through branch administration. Lundfelt joined the executive staff at the credit union in 2006 and has since distinguished himself over the years, helping to guide strategic service expansion, as well as nurturing and affirming Alaska USA’s leadership role in the industry.

Garvey Schubert Barer

Garvey Schubert Barer announced that Natalie Cale has joined the firm as an Owner. Based in the firm’s Alaska Office, Cale’s primary areas of practice include real estate, business organization, commercial, and employment law. Cale has more than fifteen years Cale of experience representing corporate clients. Cale represents individual, corporate, and government clients and is involved in both litigation and nonlitigation matters. She has served as a Superior Court Law Clerk for the Alaska Court System and has worked in the Family Law Division of the Alaska Public Defender Agency.

Great Alaskan Holidays

Great Alaskan Holidays announced the selection of Melissa Buhlert as a new Reservations Agent to their growing team. Buhlert is an experienced professional in the vehicle rental and Alaska tourism industry and will book motorhome rental reservations, maintain effective client interaction, and help ensure smooth transitions for traveler as they pick up and return their vehicles.

Providence Alaska Medical Center

Providence Alaska Medical Center has named Ella Goss, MSN, RN, as Director for the Providence Cancer Center, responsible for the entire oncology service line. Goss joined Providence in 1997 as a staff nurse in the Emergency Department at Providence Alaska Goss Medical Center and later as a flight nurse with LifeGuard Alaska. Goss has a bachelor of science and master of science degrees in nursing from Chamberlain College of Nursing, Illinois.

Alaska Peninsula Corporation

Alaska Peninsula Corporation announced the hiring of Gerrie Ann L’Heureux as President and CEO. L’Heureux has more than thirty years management experience in commercial and government services and fifteen years with an Alaska Native Corporation. She earned her Master’s in Management from Florida Institute of Technology.

USACE Alaska District

Lt. Col. Penny Bloedel has been named the new deputy commander of the U.S. Army Corps of Engineers-Alaska District. She assumed duties January 1, 2017. Bloedel manages the Alaska District’s resources, manpower, and programs, annually executing military Bloedel construction, civil works, and environmental programs throughout Alaska. She also directs emergency operations during disaster contingencies.

Coffman Engineers

Coffman Engineers announced the promotion of Trevor Buron to Principal in the Anchorage office. Buron has twelve years of experience, all with Coffman. He was born in Fairbanks and raised in Healy. He graduated with a Bachelor of Science in Mechanical Engineering from the University of Idaho. Buron specializes in industrial mechanical engineering and is instrumental to the continued development and day-to-day operation of the Coffman Anchorage office mechanical oil and gas work. R

Chainsaws. Replacement blades. Wood stoves. Whatever you need, we deliver. Connect with us / 800.727.2141 / www.nac.aero /

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Inside

Alaska Business March 2017

Compiled by ABM Staff

A

NASA

n experiment to measure nitric oxide in the polar sky was successfully launched on a NASA sounding rocket at 8:45 a.m. EST, Jan. 27, 2017, from the Poker Flat Research Range in Alaska. The Polar Night Nitric Oxide experiment, or PolarNOx, was launched on a Black Brant IX sounding rocket to an altitude of nearly 176 miles. Preliminary information shows that good data was collected. PolarNox was the first of five rockets scheduled for launch between January and March from the Poker Flat Research Range operated by the University of Alaska, Fairbanks. PolarNOX was to be followed with the launch of two additional missions that will study the interaction of the solar wind, the magnetosphere, Earth’s upper atmosphere and the structure of the resulting aurora. The magnetosphere is the region of Earth’s magnetic field where solar energy is stored and processed. The release of this energy drives aurora. The launch window for both missions, which include two sounding rockets each, is February 13 through March 3. nasa.gov | gi.alaska.edu The Polar Night Nitric Oxide, or PolarNOx, experiment from Virginia Tech is launched aboard a NASA Black Brant IX sounding rocket at 8:45 a.m. EST, Jan. 27, from the Poker Flat Research Range in Alaska. PolarNOx is measuring nitric oxide in the polar night sky. Nitric oxide in the polar night sky is created by auroras. Under appropriate conditions it can be transported to the stratosphere where it may destroy ozone resulting in possible changes in stratospheric temperature and wind and may even impact the circulation at Earth’s surface. ©NASA/Jamie Adkins

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MUNICIPALITY OF ANCHORAGE

T

he Municipality of Anchorage and the City of Whittier entered into a three-year contract for law enforcement services for the Girdwood Valley Service Area. Girdwood was left without police services after the Alaska State Troopers demobilized a thirty-year detachment on October 1, 2016. The contract with the City of Whittier is the result of a comprehensive community engagement process lead by the Girdwood Board of Supervisors and the Berkowitz Administration. muni.org

T

TAPS

he volume of oil moved through the Trans Alaska Pipeline System increased in 2016, the first calendar year-over-year increase since 2002. This is welcomed news for Alyeska Pipeline Service Company, TAPS’ operator. In 2015, the pipeline moved 185,582,715 barrels and averaged 508,446 barrels per day. The predicted total amount moved in 2016 is around 517,500 barrels a day—a 1.8 percent increase. Entering its 40th year of operations, the pipeline has mostly reported annual throughput declines since its peak flow of 2 million barrels a day in 1988. The only exceptions were slight year-to-year increases noted in 1991 and 2002. alyeska-pipe.com

T

CALISTA

he Alaska Department of Labor and Workforce Development is supporting Calista Corporation’s new maritime apprenticeship program with AVTEC courses for work on deck, in the engine room, and in the galley. Calista started the program in partnership with Brice Marine and other employers, in which the classroom learning will take place at AVTEC. Calista’s apprenticeship program is designed to support employees who rely on subsistence, ensuring workers can increase their wages while still supporting their families with hunting, fishing, and berry picking. Calista designed its maritime apprenticeship program in partnership with the US Department of Labor’s Office of Apprenticeship and with the Alaska Department of Labor and Workforce Development, including AVTEC. Its first maritime apprentices will work during the upcoming summer shipping season. akmaritimeapp.com

T

ANCHORAGE COPS FOR COMMUNITY

he Anchorage Police Department Employees Association, the Anchorage Police Department, and various community members came together to form a new nonprofit, Anchorage

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Cops for Community (AC4C). AC4C was established to facilitate police supported community programs and events. AC4C strives to foster and inspire community wellbeing through collaboration between the community and law enforcement and plans to facilitate and support such well known programs such as Project Angel Tree, Coffee with a Cop, the Clothesline Project, Operation Warm, and more. muni.org

A

AHTNA, INC.

htna, Inc. in January announced that it has concluded operations on the Tolsona No. 1 gas exploration well after completion of the initial flow testing. All personnel, equipment, and materials had been successfully demobilized from the drilling site, the well had been suspended, and all that remained was the well head. The well data will be fully evaluated over the next several months. ahtna-inc.com

T

AIDEA

he Alaska Industrial Development and Export Authority (AIDEA) Board approved a dividend of $12,883,000 to the state general fund for Fiscal Year 2018. Including this dividend, AIDEA has declared more than $392 million to the state since the dividend program began. aidea.org

T

US INTERIOR DEPARTMENT

he US Interior Department approved Craig Tribal Association’s land-into-trust application to place a 1.08-acre land parcel into federal Indian trust status. This is the first application from Alaska to be approved by the department since it issued a final revised rule in 2014 expelling the “Alaska exception” that had excluded Alaska tribes from the fee to trust process. Under federal Indian trust status, CTA’s land parcel cannot be sold, alienated, or transferred without federal approval. CTA’s parcel is home to its tribal government offices, a town hall, and commercially leased office space. doi.gov

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ALASKA RAILROAD

ailroad allure and land are the impetus behind a new Anchorage mixed-used development project featuring luxury townhouses and apartments, retail/restaurant space, and entertainment/recreational venues. Situated on eleven acres of Alaska Railroad land near West Second Avenue and Christiansen Drive, the project promotes a downtown lifestyle with wide-ranging and nearby opportunities. Named The Rail, the phased development will begin with a slop-

ing neighborhood comprised of twenty-eight townhouse-style condos constructed in a modern industrial design. This first phase is known as Downtown Edge, a luxury townhome neighborhood, and calls for completion of reserved homes by spring 2018. alaskarailroad.com

T

THE ALASKA CLUB

he Alaska Club announced the addition of a new fitness concept to complement its network of clubs around the state. The Jewel Lake Express Club will soon become Studio at The Alaska Club, slated to open in March, with a state-of-the-art, 1,600-square-foot hot yoga studio. In addition to the hot yoga studio, new additions and upgrades include a functional training area; new strength and free-weight equipment; upgraded full-body strength training circuit; and all new cardiovascular equipment. thealaskaclub.com

U

USDA-RD

S Department of Agriculture Rural Development-Alaska awarded a $4.8 million loan and a $3.5 million grant to the City of Palmer to upgrade its current wastewater system. Funding for this project comes through USDA-RD’s Water and Waste Disposal Loans and Grants Program. The project funding for system upgrade includes incorporating MBBR (Moving Bed Biofilm Reactor), a state-of-the-art fixed-film biological process used for municipal and industrial wastewater treatment, which will ultimately ameliorate the existing wastewater treatment system in Palmer. ak.usda.gov

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CHUGACH ALASKA CORPORATION

hugach Alaska Corporation announced it will sell its Bering River coal rights to New Forests, a sustainable forestry and conservation investment manager. New Forests will retire those rights by transferring them to The Nature Conservancy and the local Native Conservancy land trust, while generating revenue through the California cap-and-trade carbon market. The Bering River Coal Field is located approximately fifty miles southeast of Cordova. Chugach was conveyed 73,000 acres of land and mineral rights comprising a large portion of the Bering River Coal Field in 1983, pursuant to the Alaska Native Claims Settlement Act. This announcement represents a critical step towards achieving the objectives laid out in Chugach’s One Hundred-Year Plan.

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INSIDE ALASKA BUSINESS As part of the agreement with New Forests, Chugach will actively manage and maintain the land to retain high carbon stocks in the forests in exchange for the opportunity to sell carbon credits to businesses regulated under California’s greenhouse gas pollution reduction program. The coal rights were transferred in fee to The Nature Conservancy, a nonprofit conservation organization, with a restrictive covenant against development held by the local, Alaska Native controlled Native Conservancy Land Trust. chugach.com

AGDC | BP

A

GDC entered into a Cooperation Agreement with BP to collaborate in the development of the financial and tolling structure intended to advance the Alaska natural gas pipeline and LNG project. This agreement is intended to assist in developing a commercial structure of the project to enable project financing. BP will contribute staff, resources, and selection of third-party contractors. Additionally, in January AGDC announced the opening of an office in Tokyo, Japan under the direction of Executive Advisor Masatoshi Nick Shiratori. agdc.us

V

VIGOR | MARITIME WORKS

igor and Maritime Works jointly announced plans for an innovative training program aimed at developing an advanced manufacturing workforce comprised of Alaska residents. Called Advancing Alaskan Workers, it is essential to combatting the high turnover rates seen at the Ketchikan shipyard and elsewhere that result when non-Alaskans are recruited to fill the critical skills gap in our state. The Advancing Alaskan Workers project offers structured on-the-job training, leading to industryrecognized credentials and family wage careers. Vigor and the Ketchikan Shipyard are a logical place for Maritime Works’ first major project launch. The company is committed to the community and has been providing on-site training for their workers for years. Employees are excited about the training, with more than fifty employees registering in just the first week. vigor.net

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CHUGACH | ML&P | MEA

hree of Alaska’s Railbelt electric utilities have signed an agreement to collectively utilize their generation and transmission assets to benefit tens of thousands of customers. The

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Compiled by ABM Staff Power Pooling and Joint Dispatch Agreement, signed by Chugach Electric Association, Municipal Light & Power (ML&P), the Municipality of Anchorage, and Matanuska Electric Association (MEA), was filed with the Regulatory Commission of Alaska January 30. Signing of the agreement solidifies work of the utilities on a power market, allowing the utilities to buy and sell power when it is more economic than generating their own. By running the most efficient units first, regardless of location or ownership, the utilities estimate the arrangement will jointly save $12 million to $16 million a year in fuel, operations, and maintenance costs, and will reduce CO2 emissions by 90,000 to 120,000 tons per year. In addition to the reduced cost of power and reduced CO2 emissions, power pooling and economic dispatch of power will also reduce natural gas usage. chugachelectric.com | mlandp.com | mea.coop

T

MATANUSKA BREWERY

he US Small Business Administration has approved funding to build The Matanuska Brewery, owned by Matt Tomter, at the site of the former Mat Maid Dairy in Palmer. Last year the Alaska Board of Agriculture and Conservation approved the sale of the 10,000-square-foot Mat Maid Dairy for $825,000. alaskaalehouse.com

ALASKA MILL FEED & GARDEN CENTER

A

laska Garden & Pet Supply, dba Alaska Mill Feed and Garden Center, announced that they are converting the company to an ESOP, or Employee Stock Ownership Plan. The company currently employs sixty-five people. alaskamillandfeed.com

T

PORT MACKENZIE

he company working on developing a very high grade copper mine near Ambler—Trilogy Metals—has designated Port MacKenzie—785 miles away—as its marine terminal for future copper concentrates, which are estimated to generate $10 million annually in revenues for the Alaska Railroad. Another company that is trying to build a railroad from Alberta to Alaska—A2A Rail Development Corporation—has recently designated Port MacKenzie as the Alaska marine terminal for exports of 1 million barrels per day of bitumen, a dense form of petroleum.

Projections for possible freight to be exported and cargo to be imported on the future Port MacKenzie Railroad Extension can be found in “Port MacKenzie Rail Freight Market Analysis,” prepared by the McDowell Group for the Matanuska Susitna Borough. Construction of the 32-mile embankment for Port MacKenzie Rail is two-thirds complete. Track is on segment 6, which is a working siding near Houston operated by the Alaska Railroad. Construction crews were recently clearing trees on the last unfinished segment in the Point MacKenzie area. The $309 million project needs another $125 million for completion. matsugov.us

PND ENGINEERS, INC.

T

he Municipality of Anchorage, which sued PND Engineers, Inc. in 2013 over the failed Port of Anchorage Intermodal Expansion project and sought more than $100 million in damages, has settled with PND for $750,000. PND was the designer of record on the project, which was halted before completion of the construction. PND’s Open Cell Sheet Pile™ design was originally selected for the Port of Anchorage Expansion Project after a lengthy review by multiple local, state, and federal agencies and subject experts in soil mechanics and seismic design. PND and other design defendants brought in additional top internationallyrecognized experts in engineering, soil mechanics, and seismic stability. pndengineers.com

D

DELTA LEASING

elta Leasing, LLC, an Anchorage-based oil and gas support services company, announced that it has purchased substantial North Slope assets from MagTec Alaska, a Kenai-based equipment and vehicle leasing firm that has been a major supplier to North Slope operators. As part of the MagTec asset acquisition, Delta Leasing takes ownership of 350 equipment assets of MagTec, an 8,000-square-foot Prudhoe Bay shop facility, and the current MagTec customer leases on the equipment. A 100 percent Alaska owned business, Delta Leasing has operations in Anchorage and Prudhoe Bay. deltaleasing.com

T

ALASKA PERMANENT FUND

he Alaska Permanent Fund’s total value as of December 31, 2016 (unaudited) is $55.4 billion, comprised of $45.1 billion in Principal and $10.3 billion in the Earnings Reserve. The Fund’s investment portfolio gained 4.50 percent in the first half of FY17. apfc.org R

Alaska Business Monthly | March 2017www.akbizmag.com


Business Events MARCH

MAR

2-3

SWAMC Summit & Membership Meeting

Hotel Captain Cook, Anchorage: This year’s Southwest Alaska Municipal Conference theme, “Turning Challenge into Opportunity,” speaks to the ability to work with challenging economic times. swamc.org

MAR

8-10

Alaska Forest Association Spring Meeting

Baranof Hotel, Juneau: The Alaska Forest Association can be characterized as a high profile industry trade association. Its members hold in common general business interests in the timber industry of Alaska. akforest.org

MAR

10-12

Alaska Academy of Family Physicians Winter Update

Hotel Alyeska, Girdwood: This is the 19th annual Winter Update with an opportunity for fifteen CME credits. alaskaafp.org/Winter_Update.htm

MAR

19-23

American Fisheries Society Annual Chapter Meeting

Westmark Hotel, Fairbanks: The American Fisheries Society – Alaska Chapter and the American Water Resources Association are co-hosting the 2017 annual chapter meeting. This year’s theme is “Alaskan Fisheries and Waters: Success, limitation, and innovation in the face of data scarcity and uncertainty.” afs-alaska.org

MAR

23-25

Career and Technical Student Organization Conference

Downtown Anchorage Hilton Hotel: CTSO is the connection to Career and Technical Student Organization, the Performance Based Assessment Conference where students participate in leadership training, conduct organizational business, and showcase themselves in competitive events. ctsoalaska.org

MAR

25-26

AKANA Annual Meeting

Alyeska Resort, Girdwood: The annual meeting of the Alaska Associa-

Compiled by Tasha Anderson tion of Nurse Anesthetists is an opportunity for networking and education, with a focus on Sunday on ultrasound for anesthesia and related topics, including a hands-on ultrasound scanning workshop. alaskacrna.com

MAR

29-31

AKMGMA Annual Conference

Dena’ina Center, Anchorage: Annual conference of the Alaska Medical Group Management Association. akmgma.org

ComFish Alaska

MAR-APR Kodiak: ComFish is the largest commer-

30-1

cial fishing show in Alaska and the longest running fisheries trade show in the state, now in its 37th year. kodiakchamber.org/comfish

APR

TBD

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

4-6

TWS Alaska Chapter Annual Meeting

UAF Campus: This is the annual meeting of the Alaska Chapter of The Wildlife Society and brings together wildlife researchers, managers, educators, students, and administrators. twsalaskameeting.com

APR

Alaska Native Studies Conference

APR

Alaska Wood Energy Conference

Fairbanks: This year’s Alaska Native Studies Conference theme is “Sustaining Indigenous Livelihoods.” alaskanativestudies.org

7&9

Ted Ferry Civic Center, Ketchikan: The Alaska Wood Energy Conference is a two-day conference with sessions on biomass heating, community updates, and combined heat and power technology review. energy.gov

11-12

AKHIMA Annual Meeting

BP Energy Center, Anchorage: The Alaska Health Information Management Association is a state organization affiliated with the national organization American Health Information Management Association, an association of health information management professionals worldwide. akhima.org

13-14

APR

14-15

AFCCA Annual Child Care Conference

Anchorage: The conference includes seven hours of training, and lunch is provided. alaskafcca.org

APR

18-21

APRIL Governor’s Safety and Health Conference

APR

Kodiak Area Marine Science Symposium

Kodiak Harbor Convention Center: The symposium offers an opportunity for stakeholders to engage and understand how Kodiak’s marine environment and resources function, change, and affect our lives and livelihoods. In addition, it offers opportunities for researchers to form a plan for integrated, cooperative, and communityinspired marine research. seagrant.uaf.edu

APR

ACP Alaska Chapter Meeting

Sheraton Hotel & Spa, Anchorage: ACP is the American College of Physicians, and the annual chapter meeting is an opportunity for CME credits and MOC points. acponline.org

20-22 APR

24-27

AWWMA Annual Statewide Conference

Hotel Captain Cook, Anchorage: This is a venue for to bring information, technology, expertise, curiosity, hunger, and thirst (for refreshment and knowledge) for the Alaska Water Wastewater Management Association. awwma.org

APR

26-29

Western Alaska Interdisciplinary Science Conference and Forum

The Grand Aleutian, Unalaska: The theme of the 2017 Conference is “Western Alaska, Islands of Change.” seagrant.uaf.edu/ conferences/waisc/2017 R

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115


Compiled by Tasha Anderson

SHOP

PLAY

STAY

Classes with Local Chefs South Restaurant & Coffeehouse South Restaurant & Coffeehouse is located at 11124 Old Seward Highway in Anchorage and offers a variety of opportunities to learn from local experts, such as the restaurants popular Gin + Tonic Class, where South’s bartenders “share their secrets to crafting the perfect Barcelona Style Gin + Tonic.” Class participants sample small batches of gins and tonic waters complemented with fresh and dry botanicals, all while enjoying appetizers. South also offers classes for cooking beginners ages twelve through sixteen, pasta making classes, and other opportunities to learn from South’s professional staff. southak.com Marx Brother’s Café Marx Brother’s Café officially opened their doors in 1979 in a small house, 627 West Third Street in Downtown Anchorage. One of the restaurant’s original founders, Van Hale, offers classes and shares his decades of culinary experience. Private classes are available for groups of fifteen or more to learn how to make Caesar Salad once a month January through May. In addition Marx Brother’s Café offers a Food and Wine class, where participants learn to pair food with wines, sampling eighteen foods and nine wines, also once a month

© Matt Hage / AlaskaStock.com

LEARN FROM CHEFS

EAT 

Close up of a gourmet entree at Marx Brother’s Cafe in Anchorage.

REHABILITATION AND PHYSICAL THERAPY BACK PAIN? NECK PAIN? HEADACHES? WE CAN HELP!

1-800-PAIN FREE www.arcticchiropractic.com Life is Good When You’re Pain FREE! ALASKAN OWNED & OPERATED

25 CLINICS STATEWIDE CHIROPRACTIC MASSAGE REHAB PHYSICAL THERAPY

116

Alaska Business Monthly | March 2017www.akbizmag.com


Chef preparing a gourmet meal for guests at Winter Lake Lodge. © Jeff Schultz Photography / AlaskaStock.com

Sons of Norway Bernt Balchen Lodge Sons of Norway is the largest NorwegianAmerican organization in the world; its goal is to preserve and promote Norwegian heritage and culture. The organization’s Anchorage branch offers cooking classes in Norwegian cuisine at Viking Hall, located at 8141 Briarwood Street in Anchorage. Classes are held from 5 p.m. to 6:30 p.m. and cover a variety of foods, including vaffler (waffles), pannekaker (a think pancake), and ertesuppe (pea soup) in March and syttende mai kaker (cake) and polser and potetstappe (mashed potatoes) in April. Sons of Norway, christieak@gmail.com,  907-602-0673 Allen & Peterson Allen & Peterson offers a variety of scheduled classes and opportunities for private classes for the Anchorage community to improve their cooking skills. Located at 3002 Seward Highway in Anchorage, March scheduled classes include Essential Knife Skills, Soupy Tuesdays, Street Foods from Around the World, International Cuisine-Turkish Delights, Girls Night-Moroccan Delights, La French Café Goodies, Bring on the Brisket-Advanced Slow 24 Hour Cook, as well as kid and teen classes for making pasta or waffles. aphome.com

AVISALASKA.COM/VIP

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March 2017 | Alaska Business Monthly

117

LEARN FROM CHEFS

January through May. Once a month from February through May, the restaurant provides a class titled Wine and Cheeses of the World.  marxcafe.com


LEARN FROM CHEFS

A woman picking lettuce from the garden at Tutka Bay Wilderness Lodge in Kachemak Bay State Park across from Homer on the Kenai Peninsula. © Jeff Schultz Photography / AlaskaStock.com

Alaska Dinner Factory Alaska Dinner Factory prepares fresh meals and delivers them in the Anchorage area; in their words: “We plan, shop, chop, clean, assemble, and deliver—You cook and enjoy!” During the summer they offer Kids Cooking Camps that run from June through August. Kids learn a variety of dishes, including pasta, chicken, meatloaf, burgers, enchiladas, burritos, and other favorites. alaskadinnerfactory.com Sitka Kitch Sitka Kitch is a nonprofit organization with the mission to increase the amount of locally produced and harvested food in the diets of Southeast Alaskans. This summer Sitka Kitch is offering international cooking classes from the community rental commercial kitchen located in Sitka at 505 Sawmill Creek Road. Classes include cuisine from Morocco, Chile, Austria, Turkey, and Thailand. sitkakitch.eventsmart.com aksupperclub aksupperclub takes place at the Great House Lodge on the Kenai Peninsula near Ninilchik. Cooking classes are offered by Chef Paul Warner and include tarts: garlic, onion and warm provencal vegetables with olives and basil tempura; oys-

ters: on a half shell, farm po boy sandwhich, and oysters Rockefeller; vegan: portabello mushroom mave and zucchini boxes; grilled rib eye steak dinner; chocolate: baked brie cheese with white chocolate sauce and four the love of chocolate cake; tea: cheese soufflé and vegetables carousel torte; pasta; and smoked salmon.  aksupperclub.com

Within the Wild Within the Wild operates two Alaska lodges, Winterlake Lodge on the western edge of the Alaska Range and Tutka Bay Lodge at the southern end of Kachemak Bay near Homer. Private cooking classes are offered for groups of six or more any day of the week at Tutka Bay Lodge; during the summer season daily classes, with a minimum of four attendees, are offered with varying themes that highlight the lodge and local flora and fauna. Class participants receive instruction, an opportunity for hands-on cooking, a three course luncheon, and recipes.  withinthewild.com Northwoods Lodge The Cooking School at Northwoods Lodge offer weekend cooking classes that are open to the public as well as their guests. The classes will explore Alaska’s regional products, including world-renown Alaska King Crab and Copper River Salmon as well as lesser known Alaska ingredients such as moose, caribou, buffalo, elk, and other local ingredients.  northwoodslodge.net R

Drive Home a Winner! ACCAK.COM

Trail Sale! Laramie

Pacifica

907-276-1331 800-770-1330 118

Cherokee

Patriot

Mega Cab

Nearly 1,000 Vehicles on 11 Acres "ON SALE NOW!”

Durango

ACROSS FROM MERRILL FIELD ON EAST 5TH Dog team photo ©Jeff Schultz/Schultz Photo.com

Alaska Business Monthly | March 2017www.akbizmag.com


SHOP

PLAY 

Compiled by Tasha Anderson

Anchorage MAR

Faithfully: A Symphonic Tribute to the Music of Journey

3-4 Celebrate the music of Journey like never before with a full symphony orchestra and rockin’ vocalists. Journey is one of the most popular American rock bands of all time with twenty-five gold and platinum albums and nineteen Top 40 singles and has performed around the world for four decades. Experience hits like Don’t Stop Believing, Faithfully, Any Way You Want It, Open Arms, Wheel in the Sky, and many more. anchoragesymphony.org

STAY

including youth, adults, and military veterans, to the sports of Paralympic downhill skiing and snowboarding. challengealaska.org

Homer MAR

18

The 24th Annual Winter King Salmon Tournament

Sponsored by the Homer Chamber of Commerce and takes place from 6 a.m. to 8 p.m. homeralaska.org

Valdez Anchorage MAR

Iditarod Start

“The Last Great Race” has its official start 10 a.m. at 4th Avenue and D Street in Downtown Anchorage. The Re-Start takes place the following day (March 5) at 10 a.m. on the lake at the Willow Community Center in Willow, and the Awards Banquet takes place at the Nome Rec Center on March 19. iditarod.com

4

MAR-APR

MAR

One of the most sophisticated and entertaining plays ever written. What happens when a divorced couple reunites—while on their honeymoon—with their new spouses! What follows is a classic comedy of manners with an ending that is sure to leave audiences speechless. Timeless tale of love and marriage that’s “fantastically funny.” Written in 1930, it’s Noel Coward at his finest. cyranos.org

KTVF 2017 Interior Wedding Showcase

5 This bridal show has more than sixty vendors to help couples plan their special day, all at the Westmark Hotel and Conference Center, 11 a.m to 4 p.m. westmarkhotels.com/destinations/ fairbanks-hotel

Alaska Aviation Hall of Fame Gala

25 The 18th annual Alaska Aviation Hall of Fame Gala is March 25 at the Egan Center in Anchorage from 5 p.m. to 9 p.m. The Alaska Aviation Hall of Fame is a celebration of the men and women who shaped Alaska’s aviation history, and thus the history of our

state. The Hall of Fame also serves as the primary fundraiser for the museum, providing support for the museum’s exhibits, educational programs, and public programs. alaskaairmuseum.org MAR-APR

Great Alaska Sportsman Show

30-2 The Great Alaska Sportsman Show is a gathering for people who love the great outdoors and the Alaska exhibitors and experts who seek to equip and prepare them for a season afield. The four-day show, located at the Sullivan and Ben Boeke arenas, draws crowds of people who care passionately about fishing, hunting, hiking, camping, climbing, and virtually all other outdoor activities. greatalaskasportsmanshow.com

Anchorage

Fairbanks MAR

The Chugach Fat Bike Bash features various biking events such as the Northern Lights Criterium will take place in the harbor district. Participants bring night lights, glow sticks, glow paint, and anything else that lights up the night, and costumes encouraged. There are prizes for Most Lit Rider, and it will be followed by street party with Ursa Major Distilling. Others include the Fat Bike XC in the woods; Fat Bike Rodeo to include barrel racing, gap jump, and other skill comps; Big Air, Big Splash at the Kelsey Dock; and a dance party at the Valdez Civic Center. chugachfatbikebash.com

Wasilla

Festival of Native Arts

The Festival of Native Arts provides cultural education and sharing through traditional Native dance, music, and traditional arts and is hosted at the University of Alaska Fairbanks. fna.community.uaf.edu

2-4

Girdwood MAR

Chugach Fat Bike Bash

1-5

Private Lives

10-2

MAR

MAR

Fairbanks

Gateway to Gold Experience

11 Challenge Alaska, in conjunction with U.S. Paralympics, a division of the United States Olympic Committee, is hosting a Gateway to Gold Experience event on Saturday at the Challenge Alaska Adaptive Ski & Snowboard School in Girdwood. The event will introduce individuals with physical and visual impairments,

MAR

Mat-Su Outdoorsman

18-20 Show The show includes a gun

show, a free archery range for kids, a laser shooting range for all ages, 176 vendors, seminars and demonstrations, and book signing, all at the Menard Sports Center, Friday Noon to 6 p.m.; Saturday 10 a.m. to 6 p.m.; and Sunday 10 a.m. to 5 p.m. chinookshows.com MAR

Equinox Film Festival

Annual Equinox Women’s 25-26 The Film Festival is an international film festival showcasing women. The opening reception of the festival is Friday night at 6 p.m. at Glenn Massay Theater, and the festival begins Saturday at 11 a.m. glennmassaytheater.com R

Thompson Pass

MAR

MAR

Empty Bowl

This is the annual spring fundraiser for Bean’s Café, a not-for-profit organization with the mission to feed the hungry and shelter the homeless, taking place from 11 a.m. to 2 p.m. at the Den’aina Center. Purchasing a ticket allows the attendee to select one locally made and donated bowl to take home, as well as enjoy soup and cornbread. beanscafe.org

11

www.akbizmag.com

Tailgate Alaska 10

years ago Tailgate Alaska began in a single tent on Thompson 17-26 Nine Pass with a handful of professional athletes, media veterans, six cases of beer, and a few dedicated recreational riders. What happened that first year would change snowboarding forever. It began a new model to market the sport—one which put inclusion, experience, and participation above everything else. Simply put, everyone who has attended Tailgate Alaska has been a participant—nobody comes to watch. tailgateak.com March 2017 | Alaska Business Monthly

119

EVENTS CALENDAR MARCH 2017

EAT


ALASKA TRENDS ANS Crude Oil Production 02/01/2017 09/01/2015 01/01/2014 05/01/2012 09/01/2010 01/01/2009 05/01/2007 09/01/2005

ANS Production per barrel per day 559,107 Feb. 1, 2017

01/01/2004 05/01/2002

The mission of the USDA Rural Development agency is to increase opportunity and improve the quality of life for all rural Americans. Under the direction of Alaska State Director Jim Nordland, USDA Rural Development Alaska spent $2.163 billion through direct loans, guaranteed loans, grants, and subsidies between fiscal year 2009 and 2016.

09/01/2000

0 400,000 800,000 1,200,000 SOURCE: Alaska Department of Revenue Tax Division

ANS West Coast Crude Oil Prices

Electric & Telecom

02/01/2017 09/01/2015

$683,062,428

Water & Environmental

01/01/2014 05/01/2012

$294,902,700

Community Facilities

09/01/2010 01/01/2009

$280,054,050

Business Programs

05/01/2007 09/01/2005

ANS West Coast $ per barrel $55.46 Feb. 1, 2017

01/01/2004 05/01/2002 09/01/2000

$775,254,265

Housing

$0

$20

$40

$60

$130,131,661 $0

$200,000,000

$80 $100 $120 $140 $160

$400,000,000

$600,000,000

$800,000,000

Subsidy

Guaranteed Loan

SOURCE: Alaska Department of Revenue Tax Division

$

Statewide Employment Figures 10/1976—12/2016 Seasonally Adjusted

729,647,266

$

38,066,777

1.8%

33.7%

12/31/2016 11/01/2012 01/01/2010 03/01/2007 05/01/2004 07/01/2001

Labor Force Employment Unemployment 6.7% Dec. 2016

Direct Loan $

Grant

912,559,745

$

42.2%

09/01/1998 11/01/1995

483,131,336

22.3%

01/01/1993 03/01/1990 05/01/1987 07/01/1984 09/01/1981 11/01/1978 01/01/1976 0 100,000 200,000 300,000 400,000 SOURCE: Alaska Department of Labor and Workforce Development, Research & Analysis Section; and US BLS

ALASKA TRENDS IS BROUGHT TO YOU BY AMERICAN MARINE/PENCO

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Alaska Business Monthly | March 2017www.akbizmag.com


By ABM Staff Communities that received a loan or grant 2009-2016

Interior Area

561,872,667

$

26%

Central Area

421,288,964

$

19.5%

West Area

Akiachak Akiak Akutan Alakanuk Alatna Aleknagik Allakaket Alukanuk Ambler Anaktuvuk Pass Anchor Point Anderson Angoon Aniak Anvik Arctic Circle Atka Atmautluak Atqasuk Barrow Beaver Bethel Bettles Big Lake Black Rapids Brevig Mission Buckland Chaulkyitsk Chefornak Chenega Chenega Bay Chevak Chicken Chignik Chignik Lake Chistochina Chuathbaluk Clam Gulch Clark’s Point

Coffman Cove Cooper Landing Copper Center Cordova Craig Crooked Creek Deering Delta Junction Denali Park Dillingham Diomede Dot Lake Eagle Eagle River Edna Bay Eek Ekwok Elim Emmonak Ester Fairbanks False Pass Fort Yukon Galena Gambell Glennallen Golovin Goodnews Bay Grayling Gulkana Gustavus Haines Healy Healy Lake Hollis Holy Cross Homer Hoonah Hooper Bay

Hope Houston Hughes Huslia Hydaburg Hyder Igiugig Iliamna Juneau Kachemak Kake Kaktovik Kaltag Kasaan Kasigluk Kasilof Kenai Kenny Lake Ketchikan Kiana King Cove King Salmon Kipnuk Kivalina Klawock Kobuk Kodiak Kokhanok Koliganek Kongiganak Kotlik Kotzebue Koyuk Kwethluk Kwigillingok Larsen Bay Levelock Lower Kalskag Manakotak

Manly Hot Springs Marshall McCarthy Mekoryuk Mertarvik Metakatla Minto Moose Pass Mountain Village Naknek Nanwalek Napaimute Napaskiak Napiakiak Nelson Lagoon Nenana New Stuyahok Newhalen Newtok Nightmute Nikiski Nikolaevsk Nikolai Ninilchik Noatak Nome Nondalton Noorvik North Pole Northway Nuiqsut Nulato Nunam Iqua Nunapitchuk Old Harbor Old Kasigluk Oscarville Ouzinkie Palmer

Pedro Bay Pelican Perryville Petersburg Pilot Point Pilot Station Pitkas Point Platinum Point Baker Point Hope Point Lay Port Alsworth Port Graham Port Moller Port Protection Quinhagak Rampart Ruby Russian Mission Saint George Saint Mary’s Saint Michael Saint Paul Salcha Sand Point Savoonga Saxman Scammon Bay Selawik Seldovia Seward Shageluk Shaktoolik Shishmaref Shungnak Sitka Skagway Slana Sleetmute

Soldotna South Naknek Stebbins Steelmute Sterling Stevens Village Stony River Sutton Takotna Talkeetna Tanacross Tanana Tatitlek Teller Tenakee Springs Tetlin Thorne Bay Togiak Tok Toksook Bay Trapper Creek Tuluksak Tuntutuliak Tununak Twin Hills Tyonek Unalakleet Unalaska Upper Kalskag Valdez Venetie Wainwright Wales Ward Cove Wasilla White Mountain Whittier Willow Wrangell

471,574,888

$

21.8% Southeast Area

229,793,482

$

10.6% Statewide

24,302,448

$

Gulf Area

1.1%

454,572,675

$

USDA Rural Development Alaska Total Spending

2,163,405,124

$

21% PENCO • Environmental Response, Containment • Site Support Technicians, Maintenance • Waste Management, Environmental Monitoring • Tank Cleaning, Inspection • Petroleum Facility Maintenance & Repair • Logistics Support • 24-Hour Response www.akbizmag.com

ANCHORAGE OFFICE (907) 562-5420 DEADHORSE OFFICE (907) 659-9010

A la ska I Ca lifornia I Hawaii

www.penco.org

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March 2017 | Alaska Business Monthly

121


ADVERTISERS INDEX ABR Inc................................................................9 Acrisure LLC....................................................11 Advanced Physical Therapy of Alaska....................................................73 AE Solutions Alaska LLC...........................20 AK USA Federal Credit Union............. 101 Alaska Crane LTD.........................................86 Alaska Dreams Inc...................................107 Alaska Gasline Development Corp.....14 Alaska Logistics............................................ 51 Alaska Railroad.............................................79 Alaska Regional Council Carpenters.79 Alaska Rubber...............................................49 Alaska Satellite Internet ASI...................78 Alaska Traffic Company...........................74 Alsco..................................................................39 American Fast Freight...............................53 American Marine / Penco........ 120, 121 Anchorage Chrysler Dodge................118 Anchorage Sand & Gravel.......................77 Arcadis..............................................................69 Arctic Catering.............................................64 Arctic Chiropractic.................................. 116

Arctic Office Products..............................50 Ashbreez Boatworks LLC........................13 ASRC Energy.................................................. 21 Avis Rent-A-Car..........................................117 Bering Straits Native Corp......................59 Business Insurance Associates Inc.....91 C & R Pipe and Steel Inc...........................86 Calista Corp. Land Dept...........................63 Carlile Transportation Systems....23, 123 CH2M.................................................................28 CIRI.................................................................. 115 Conam Construction Company...........93 Conrad-Houston Insurance Agency.. 33 Construction Machinery Industrial.......2 Crowley Petroleum Distribution..........61 Cruz Construction Inc..............................97 Davis Constructors & Engineers Inc..75 Delta Leasing LLC.....................................103 Dowland-Bach Corp..................................77 EDC Inc............................................................89 Equipment Source Inc.................................3 Fairbanks Memorial Hospital.................43 Fairweather LLC...........................................22

First National Bank Alaska......................... 5 Fountainhead Hotels.................................38 GCI...................................................................124 Holmes Weddle & Barcott.......................85 Judy Patrick Photography...................122 Landye Bennett Blumstein LLP.............94 Loken Crane...................................................78 Lynden Inc...................................................... 15 Matson Inc......................................................45 Mechanical Contractors of Fairbanks..........................................105 Microcom........................................................38 N C Machinery..............................................67 New Horizons Telecom Inc....................25 Nortech Environmental & Engineering.........................................78 North Star Behavioral Health................ 41 Northern Air Cargo..................... 110, 111 Northrim Bank..............................................19 Olympic Tug & Barge................................49 Pacific Coast Maritime..............................49 Pacific Pile & Marine......112, 113, 114 Parker Smith & Feek...................................83

PenAir...............................................................58 Port of Anchorage......................................55 Port of Nome.................................................48 Quality Asphalt Paving.............................95 Ravn Alaska....................................................87 SeaTac Marine Services............................59 Seawolf Sports Properties...................... 31 Span Alaska Transportation Inc........106 Stellar Designs Inc................................... 116 T. Rowe Price.................................................35 The Plans Room...........................................85 TOTE Maritime Alaska...............................29 Tutka LLC.........................................................89 UA Local 367 Plumbers & Steamfitters......................................108 Ukpeagvik Inupiat Corp........................104 UNIT Company.............................................95 United Way of Anchorage.......................37 Visit Anchorage............................................99 Washington Crane & Hoist......................27 Waste Management...................................65 Wells Fargo Bank Alaska..........................81 Yukon Equipment Inc................................91

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122

Alaska Business Monthly | March 2017www.akbizmag.com


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Alaska Business March 2017  

Work on a feasibility study to address the need for Arctic deep-draft ports in Alaska was suspended in October 2015 after Shell pulled out o...

Alaska Business March 2017  

Work on a feasibility study to address the need for Arctic deep-draft ports in Alaska was suspended in October 2015 after Shell pulled out o...