JUNE 2010

Oil O il & G Gas: as: S Seasonal easonal R Review eview | B Business usiness B Banking anking

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June 2010

Bill Sheffield Transportation industry icon.

Employment Agencies Benefiting employers.

Alaska’s Biggest Mining Projects A year of conflict.

Former Gov. Bill Sheffield Director Port of Anchorage

American Fast Freight: Doing whatever it takes to move your world.

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JUNE 2010 TA B L E O F C O N T E N T S

ABOUT THE COVER

D E PA R T M E N T S From the Editor . . . . . . . . . . . . . . 7 Inside Alaska Business . . . . . . . 10 Events Calendar . . . . . . . . . . . . 30 Market Squares . . . . . . . . . . . . . 47 Right Moves . . . . . . . . . . . . . . . . 52 Alaska Trends . . . . . . . . . . . . . . 127 Ad Index . . . . . . . . . . . . . . . . . . 130

Former Alaska Governor and Port of Anchorage Director Bill Sheffield pictured outside his office at the Port of Anchorage as a ship arrives full of cargo. ABM’s annual Transportation Special Section begins on page 75. Cover photo by Bill Zervantian/Bill Z Photography.

R E G U L A R F E AT U R E S

VIEW FROM

THE

ARTICLES

TOP

LEADERSHIP

Pam Barnes . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Climbing the Corporate Ladder . . . . . . . . . . . . . 12

eDocsAlaska Inc. By Peg Stomierowski.

Two women leaders new to ranks, but not to success. By Heidi Bohi.

HEALTHY WORKPLACES

HEALTH & MEDICINE OP-ED

Smoke-Free Workplace? . . . . . . . . . . . . . . . . . 20

Electronic Medical Records . . . . . . . . . . . . . . . . 16

Lower health insurance premiums by promoting cessation programs. By Jody Ellis-Knapp.

Multidiscipline approach reaps rewards. By Mark Moronell.

OIL & GAS

Open Season for Natural Gas in Alaska . . . . . . 36 TransCanada, ExxonMobil, ConocoPhillips, BP market pipeline plans. By Vanessa Orr.

OIL & GAS

Oil Industry Review . . . . . . . . . . . . . . . . . . . . . . . 42 Slow season wrap-up. By Heidi Bohi.

Photo courtesy of Pioneer Natural Resources

PAGE

20 REGIONAL REVIEW

Southeast Alaska . . . . . . . . . . . . . . . . . . . . . . . 24 Resilient in tough times. By Tracy Barbour.

ALASKA THIS MONTH

Colony Days Honors Palmer Settlers . . . . . . . 29 Festival marks colonists 75th anniversary. By Nancy Pounds.

PAGE

42

HR MATTERS

Getting the Right Employees . . . . . . . . . . . . . 34 Multi-staged hiring process recommended. By Lynne Curry.

TOWNS

IN

TRANSITION

Barrow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Top of the world. By Heidi Bohi.

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GENERAL

Employment Agency Staffing . . . . . . . . . . . . . . . 54 High tech and people savvy, agencies save time and money.

By Deborah Jeanne Sergeant.

www.akbizmag.com • Alaska Business Monthly • June 2010

(continued on page 6)

JUNE 2010 TA B L E O F C O N T E N T S ARTICLES

ARTICLES

TECHNOLOGY

Web Savvy Alaska Businesses . . . . . . . . . . . . . 119 Embracing e-commerce technology. By Tracy Barbour.

ENERGY

Alaskans in Need, Solutions at Hand . . . . . . . . 124 Address rural energy needs today, conference attendees say.

By Debbie Cutler.

PAGE

58

PAGE Photo courtesy of Port of Anchorage

76

FINANCIAL

Business Banking . . . . . . . . . . . . . . . . . . . . . . . . . 58 Trends change with economy. By Peg Stomierowski.

FINANCIAL SIDEBAR

Business Plan Basics . . . . . . . . . . . . . . . . . . . . . . 59 Key elements crucial to success. By Peg Stomierowski.

CONSTRUCTION

Alaska Ports and Harbors . . . . . . . . . . . . . . . . . . . 62 Marine engineering, construction projects advance.

By Peg Stomierowski.

TRANSPORTATION TRAN TR ANSP AN SPOR SP ORTA OR TATI TA TION TI ON SPECIAL SPE PECI CIAL CI AL S SECTION ECTI EC TION TI ON

MINING

Alaska’s Biggest Mines . . . . . . . . . . . . . . . . . . . . . 66

Bill Sheffield . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

Zinc, copper and gold projects. By Heidi Bohi.

Transportation industry icon. By Tracy Barbour.

PEOPLE

American Fast Freight Builds Green . . . . . . . . 80

Robbie Graham . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

Port of Tacoma warehouse, offices save energy. By Heidi Bohi.

Alaskan returns as social entrepreneur. By Heidi Bohi.

Seasonal Airlines Return with Tourists . . . . . . 82

FISHERIES

Alaska Air dominates year-round reliability. By Heidi Bohi.

Deadliest Catch Windfall . . . . . . . . . . . . . . . . . . . 117

Expanding Alaska Rail Lines . . . . . . . . . . . . . . 86

Show brings viewers and feasibly wealth to Alaska.

By Markos N. Kaminis.

New routes add more than 100 miles, cost $1 billion-plus.

By Vanessa Orr.

Multimodal Cargo Transportation . . . . . . . . . . . 90 Marine shipments delivered via air, rail and road.

By Dianne O’Connell.

ABM 2010 Transportation Directory . . . . . . . . . 96

PAGE Photo by Rick Gershon / Getty Images / Courtesy of Discovery Channel

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Correction In the May 2010 issue, in an article titled “Great Oil Expectations: What do Alaskans Want?” Betsy Lawer’s title was incorrect in the article and a pullquote. She is vice chair of First National Bank Alaska.

www.akbizmag.com • Alaska Business Monthly • June 2010

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EDITORIAL STAFF Managing Editor Associate Editor Art Director Art Production Graphic Design Photo Consultant Photo Consultant Photo Consultant

Debbie Cutler Susan Harrington Candy Johnson Linda Shogren Janyce Nolan GOE Graphics & Design Chris Arend Judy Patrick Bill Zervantian

BUSINESS STAFF General Manager National Sales Mgr. Account Mgr. Account Mgr. Traffic Coordinator Accountant

Jim Martin Charles Bell John Page Anne Campbell Elaine Collins Mary Schreckenghost

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ALASKA BUSINESS MONTHLY (ISSN 8756-4092) is published monthly by Alaska Business Publishing Co., Inc., P.O. Box 241288, Anchorage, Alaska 99524; Telephone: (907) 276-4373; Fax: (907) 279-2900, ©2010, Alaska Business Publishing Co. All rights reserved. Subscription Rates: $39.95 a year. Single issues $3.95 each; $4.95 for October.

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THE

E

DITOR

Cruising Anchorage

Volume 26, Number 6 Published by Alaska Business Publishing Co. Anchorage, Alaska Vern C. McCorkle, Publisher 1991~2009

OM

‘A Cloud With a Silver Lining’

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n mid-April, I attended an Anchorage Chamber of Commerce luncheon to hear about Holland America Line coming to Anchorage as a port of call for the 2010-2011 tourism season. I was excited at the news, as it’s been a long time since Anchorage has seen a major cruise ship at its docks.

I thought this would be big news for Anchorage and big news to the economy.

I was partly right.

SUNSHINE AND RAIN

“It’s a cloud with a silver lining,” explained Rod Pfleiger, community relations for the Alaska Cruise Association. “This ship previously did a turn port in Seward with 1,400 passengers who got off and were headed to Denali, Anchorage, the Kenai Peninsula or the Mat-Su Valley. They overnighted it, and at the same time another 1,400 passengers started their cruise.”

That meant money to B&Bs, hotels and bed tax income into the city’s coffers to help pay for such things as our convention centers.

“It will help in the long run, but in the short-run it will have a negative impact on the economy,” Pfleiger added.

NEW LAST MONTH

Holland America Line came to Anchorage first on May 24 as part of a 14-day cruise departing from and returning to Seattle. It will continue Anchorage dockings on Mondays through the summer into September on a regular basis: June 7, June 21, July 5, July 19, Aug. 2, Aug. 16, Aug. 30 and Sept. 13.

Other ports of call include Ketchikan, Skagway, Sitka, Homer, Kodiak, Juneau and Victoria, British Columbia. Each docking of the Amsterdam will bring 1,380 cruise passengers from all over the world to the ship’s lengthiest Alaska port stop, the Port of Anchorage and downtown areas where passengers can leave the ship at 7 a.m. and return at 11 p.m. They will be able to take shuttles or taxis from the port to explore Anchorage.

There will also be a crew of 615, who can depart the ship to load up on supplies, visit retail stores, Internet cafes and other places. “It will have an economic impact,” said Pfleiger.

That means dollars for downtown cafes and restaurants, for gift shops and malls, for adventure companies, other local attractions and much more, stated Jack Bonney, public relations manager of the Anchorage Convention and Visitors Bureau, in an e-mail.

Passengers will visit our museums, take the downtown trolley, and attend Music in the Park, which is extended to Mondays just for the cruise passengers, Bonney added.

They will bring with them spending money, which already, statewide, inflects about $1 billion into the economy, based on 2008 and 2009 figures. 2010 expectations are $878,000, or about $950 per person. This could be higher due to the longer cruise (14 days instead of seven), Bonney stated.

The ACVB will be ambassadors to this port of call, making sure passengers are welcomed, helping to coordinate between Holland America Line, the port and Anchorage as a whole, and seeing that travel throughout Anchorage goes smoothly.

LEGISLATURE DESERVES APPLAUSE

On a side note, kudos go to the State Legislature, which on April 18, voted to lower State head tax from $46 a passenger to $34.50. It may give incentives for those who left Alaska because of the head tax, such as Norwegian Cruise Lines and Royal Caribbean Cruises, reason to return. It also settles a State lawsuit filed by the Alaska Cruise Association over the tax that voters approved in 2006 to help fund infrastructure projects.

“The recent Senate Bill 312 really sends a positive message to the cruise industry,” said Pfleiger.

“Alaska … made adjustments downward of cost of doing business here in Alaska to be competitive in the world market.”

– Debbie Cutler Managing Editor

www.akbizmag.com • Alaska Business Monthly • June 2010

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INSIDE ALASKA BUSINESS ‘Breaking News’ Conference, a Must-Attend for Small and Large Businesses

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laska Business Monthly, The Growth Company Inc., Motznik Information Services and Lisa Fallon/ Homestate Mortgage are sponsoring the seminar “Breaking News: What Managers, Business Owners and Supervisors Need to Know About the Newest Legal Changes Impacting Personnel Management,” on June 23 in Anchorage.

The hour-and-a-half seminar, presented by Andy Brown, J.D., MPA, held from 8 a.m. to 9:45 a.m., costs only $35, but could save you and your company millions in unexpected costs over the next couple years, says Lynne Curry, owner, The Growth Company.

“From a manager’s and business owner’s perspective, I find this seminar invaluable,” says Jim Martin of Alaska Business Monthly. “That is why we agreed to assist in sponsoring it. Companies with or without HR departments, or without on-hand legal staff really need to know what’s coming up the pike. And no one is better equipped to train than Andy, who has been a labor and employment attorney and senior consultant with The Growth Company there, dealing with legal and HR matters.”

To register, call Jolette at 276-4769 or e-mail her at jolette@thegrowth company.com.

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COMPILED BY NANCY POUNDS

Fort Knox Logs Safety Mark

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ort Knox employees have recorded safety milestones for the Fairbanksarea gold mine. In March, mine officials reported employees had logged more than 3 million man-hours without a lost-time incident. Also, on Dec. 28, 2009, the mine marked its third consecutive year without a lost-time incident. The Kinross Fort Knox mine is located 25 miles northeast of Fairbanks and employs nearly 500 local residents in full-time jobs. The mine produces nearly 300,000 troy ounces of gold annually.

Credit Union 1 Earns Certification

Anchorage Airport Lands Top Rank

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he Ted Stevens Anchorage International Airport was ranked North America’s No. 2 aviation cargo facility

by Air Cargo World magazine. The Anchorage airport was nine points behind No. 1-ranked Memphis, Tenn. The airports were evaluated on performance, value, facilities and operations. A multiyear project is nearly complete to allow the Anchorage airport to handle the largest cargo aircraft per Federal Aviation Administration standards. Runways and taxiways have been widened and strengthened to accommodate Airbus A-380 and Boeing 747-8 aircraft. Additionally, the airport recently modified many of its cargo parking spots to accommodate these larger aircraft.

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redit Union 1’s on-site childcare facility earned accreditation from the National Association for the Education of Young Children. The credit union is now one of 15 locations in Alaska to have earned this certification. The association is the nation’s leading organization of early childhood professionals.

The credit union’s Little 1’s Learning Center, established in 2006, provides on-site childcare for employees’ children to help them balance the demands of work and family life.

“NAEYC Accreditation lets our employees know that their children are getting the best care and early learning experiences possible,” said Leslie Ellis, president and chief executive of Credit Union 1.

Hospital Plans Technology Upgrade

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laska Native Tribal Health Consortium chose Cerner Corp. to install and provide new health care technology systems at its Alaska Native Medical Center campus. The hospital aims to automate processes from registration and scheduling to computerized physician order entry. The new system will allow patients to securely and electronically communicate with their providers.

Also it allows providers to manage the electronic health records of patients located outside the community.

The system is expected to be available in October 2011.

www.akbizmag.com • Alaska Business Monthly • June 2010

INSIDE ALASKA BUSINESS Federal Funds Buoy Rural Broadband

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opper Valley Wireless Inc. was awarded $3.4 million in federal funds to improve wireless broadband services to the Cordova area. The funds consist of a $1.7 million grant and a $1.7 million loan for the Cordova Microwave Project as part of broadband infrastructure projects funded by the American Recovery and Reinvestment Act. The project aims to provide broadband to households, businesses and community facilities, which now are connected to the Internet by satellitebased service. In addition to more than 800 households, broadband will be made available to the Cordova schools, Prince William Sound Community College, the Coast Guard, a medical center, the Native Village of Yak, the police department, State Troopers and the public health nurse.

Denali Alaskan Opens Kenai Branch

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enali Alaskan Federal Credit Union opened its 17th Alaska branch in the new Kenai Wal-Mart March 31 at 10096 Kenai Spur Highway. David Stafford is branch manager. He most recently served as branch manager for the Fairbanks Johansen branch. The fullservice branch offers deposit and loan products and services plus an on-site ATM. The branch is open daily from 10 a.m. to 7 p.m.

The credit union tallied about 2,000 members in the Kenai area before the

new branch opened, due to a successful auto-lending program through Alaska auto dealers.

“Denali Alaskan is particularly excited about opening in Kenai because it represents a new market for us,” said Bob Teachworth, Denali Alaskan president and chief executive. “We have been researching this area for quite a while, and the opportunity to open a branch in cooperation with the nation’s largest retailer is one we could not pass up.”

Icicle Seafoods Grant Supports UA programs

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cicle Seafoods donated $200,000 to support programs and scholarships at several University of Alaska campuses. It is the third consecutive year the company has presented a grant to the university. The donation includes $85,000 to the University of Alaska Anchorage Institute of Social and Economic Research for the Icicle Fisheries Fund. The fund was established two years ago with a similar gift from Icicle Seafoods to strengthen ISER’s capacity to study Alaska fishing industry and seafood markets. This year’s donation includes a new scholarship at Kenai Peninsula College for students from the Seward and Homer areas attending KPC, the Resurrection Bay Extension Site or Kachemak Bay Campus.

Other funds from the donation will support programs at KPC’s Kachemak Bay Campus, Kodiak College, University of Alaska Southeast and the University of Alaska Fairbanks.

NAC Inks Deal with Omni Air

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orthern Air Cargo signed an agreement with Omni Air International to provide maintenance support for aircraft in Anchorage and Fairbanks.

NAC will provide aircraft-maintenance personnel, ground-handling equipment and deicing services as needed.

Omni Air International, based in Tulsa, Okla., operates DC-10 and 757 aircraft for charter flights for the U.S. Department of Defense.

Grant Funds UAF Alaska Native Health Research

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he University of Alaska Fairbanks received a $7.5 million grant from the National Institutes of Health to create new health research facilities in Fairbanks and Bethel. The grant will fund renovations at two buildings. Funds will also support ongoing research at the Center for Alaska Native Health Research aimed at eliminating health disparities among Alaska Natives.

In Bethel, the empty Vocational Technology Building at the UAF Kuskokwim Campus will become a 1,378-square-foot clinical and nutritional-assessment suite.

It will include space for blood testing, physical activity measurements, body measurements and nutritional data collection. The renovation project also will create a facility to allow long-distance research interviews between YukonKuskokwim Delta communities and the Fairbanks campus. Renovations in Bethel are expected to use $3.8 million of the grant.

www.akbizmag.com • Alaska Business Monthly • June 2010

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INSIDE ALASKA BUSINESS “This means so much to the Bethel and the Y-K delta as far as providing jobs and education opportunities,” said Mary Pete, director of the Kuskokwim campus. “This also means community members will have a physical location where they can go to help find solutions for many of the health problems our people face.”

On the UAF campus, $3.6 million in renovations will create mirror facilities in the Arctic Health Research Building and build a stable isotope analysis lab.

The project will fill in the atrium area at Arctic Health and add 1,566 square feet of research and office space.

Center researchers study health issues including nutrition, drug, alcohol and suicide prevention; contaminants and nutrients in Alaska’s subsistence food; and Yup’ik ways of coping with stress.

Hotel Owner Rebrands Properties

The hotels have added Alaska Native art specific to Chenega’s Prince William Sound region as part of the rebranding effort. The hotels now have a single reservation system.

Wineries Garner Awards

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hree Alaska wineries earned awards at the Mazer Cup International Mead Cup Competition in Colorado. Celestial Meads of Anchorage won nine medals. Ring of Fire Meadery in Homer received five medals, including three gold medals.

The Mazer Cup event is an international honey wine competition.

Also, Bear Creek Winery of Homer won five medals at the Finger Lake International Wine Competition in New York. About 700 wineries competed from the United States, Canada and other countries.

Dealer Wins Annual Honor

with the most dependable and reliable lift trucks available as well as excellent customer service.”

Local Home Instead Owner Recognized for Outstanding Performance

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nchorage business owner Stacee Frost was recognized for outstanding business performance at the Home Instead Senior Care annual international meeting held in Omaha.

Home Instead Senior Care is the world’s leading provider of nonmedical home care and companionship to older adults with offices worldwide, including Anchorage.

Frost was recognized with a Cornerstone V award at the April event. The award is presented for superior sales and service satisfaction.

“What an honor to be recognized for our service to this area’s seniors and their families who are such an important part of this community,” Frost said.

“We thank our staff and CAREGivers for contributing to this success by making the world a better place for seniors each and every day.”

This year’s Home Instead Senior Care meeting, Living It, celebrated the company’s commitment at every level of the organization to meet the needs of the world’s aging population.

Franchise owners received a variety of new products, tools and programs designed to enhance their competitive ❑ market edge.

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ndependent Lift Truck of Alaska Inc. of Anchorage was chosen 2010 Quest for Excellence Dealer of the Year by Cat Lift Trucks. The dealer was honored for its superior sales performance, customer relationships and operational knowledge of Cat lift trucks. The company exceeded expectations in new machine and parts sales in 2009, company officials said.

“To be recognized as a top dealer and receive this award is a great honor,” said Wayne Dick, president, Independent Lift Truck of Alaska. “We take great pride in providing our customers

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www.akbizmag.com • Alaska Business Monthly • June 2010

henega Commercial Holdings LLC renamed three downtown Anchorage hotels. The hotels now operate under the Choice Hotels International brand. The Clarion Suites property is now Quality Suites, Convention Center. The former Hawthorn Suites is now the Clarion Suites, Downtown. The Voyager Hotel retained its name under the Rodeway Inn brand.

Chenega Commercial Holdings, a subsidiary of Chenega Corp., purchased the Clarion Suites in 2003 and Hawthorn Suites in 2004. In 2008, the company acquired the Voyager hotel.

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COMPILED BY NANCY POUNDS

VIEW

FROM THE

TOP

Pam Barnes eDocsAlaska Inc.

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fter a decade of using specialized software to help attorneys search records, Pam Barnes, president of eDocsAlaska Inc., realized most businesses would benefit from the technology. She started eDocsAlaska in 2000, offering document-management consulting and analysis, especially for firms transitioning to electronic-document use and storage. Within two years, at a client’s urging, she became a reseller of the Laserfiche software application, exclusively implementing Laserfiche solutions across the state.

At eDocs, software sales tend to double every four years. The firm has enjoyed 10 percent to 15 percent client growth annually.

After receiving a degree in geology from the University of Colorado at Boulder, Barnes spent four years exploring for precious metals in Southeast Alaska before moving into geologic modeling, volumetrics (measuring oil reserves in a reservoir), and software development at BP Exploration. When she was assigned to create a contentsearchable document database for litigation purposes, her career took its last major turn.

Besides this work, she owned a guiding business, Llama Buddies Expeditions, for 18 years, and designed and built a ranch in the Matanuska-Susitna Borough. A few years ago, she completed an ultramarathon in Iceland.

ABM: How’s the view from the top there?

Why do people need what you do?

Barnes: There are compelling reasons to change, and despite the challenging economy, our niche demand is growing. Businesses face major challenges in managing huge quantities of information, effectively protecting, securing, integrating and sharing data essential for decision-making.

Another challenge is using resources

well enough to remain competitive. As costs to manage information soar, firms must keep finding ways to better manage people, information, and network and systems costs. Electronic-document management allows them to do more with less, reducing costs, for a rapid and impressive return on investment.

A well-implemented transition simplifies many things, so an organization can quickly and effectively respond to requests for information.

Regulations also are mandating change. Especially in the medical and financial industries, firms face an imposing array of regulatory compliance requirements, forcing them to do business differently. Document management and software tools are a necessity now, not a luxury. Fortunately, the costs of the technology have dropped over time.

ABM: What’s the most challenging part of going paperless, and the greater human challenge?

Barnes: A successful move away from paper requires a real understanding of the needs of the data users and the information they work with. Phased planning and excellent training are also keys to successfully designing a digital solution. Overcoming the loss of something physical to hold on to is probably the greatest human challenge, and also having to let go of old storage-method thinking, finding things using archive-box numbers, deeply nested folder structures and big file names. When they finally make the move, clients are generally surprised at the ease of retrieving and distributing information online.

ABM: What percentage of businesses, especially medical providers, is participating in the digital shift?

Barnes: Most companies are making some level of shift away from managing

Photo courtesy of Pam Barnes

BY PEG STOMIEROWSKI

Pam Barnes

information via paper. I think if you polled businesses in Alaska, 40 percent would say they are making some headway, but medical firms are lagging well behind that. In terms of moving digitally companywide, getting all types of records online so they may be shared across an organization, that’s probably less than 10 percent now.

ABM: Besides technology, what forces drive document management?

Barnes: Need. Organizationally, the cost of doing nothing is too great, and now, industries are being mandated to make the move for compliance reasons.

ABM: Describe your business culture and ideal employee traits.

Barnes: We believe in the value of the technology and expertise that we provide our customers. My goal is to have a team that works well together, develops personal expertise and understands their value to the company.

I value flexibility, and I look for employees who enjoy challenge and accept responsibility for an outcome.

And, I pretty much demand that we get it right the first time, every time.❑

www.akbizmag.com • Alaska Business Monthly • June 2010

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LEADERSHIP

Climbing the Corporate Ladder Two women leaders new to ranks, but not to success.

BY HEIDI BOHI

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Photo courtesy of Alaska Regional Hospital

ot everyone is cut out for Alaska. Climate aside, it takes someone who understands the state is still stumbling through its awkward youth and who wants to help ease the trying transition. What some see as

Annie Holt, CEO, Alaska Regional Hospital.

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funky, they find fascinating. To them, challenges are nothing more than a flashing sign that around the bend are good things to come.

When Annie Holt, Alaska Regional Hospital chief executive officer, decided to accept the position to lead one of the state’s largest hospitals, this is what made her the perfect candidate for the position.

“I tend to go to jobs that are interesting rather than just a bigger opportunity,” Holt says from the corner office she has occupied since October 2009. “I go to hospitals that allow me to grow and contribute. I’m a very action-oriented type person and high energy and felt that the working relationships in the community and hospital were receptive to having my kind of personality here.”

Since first arriving, Holt says, her primary focus has been assessing the hospital to see what’s been working well and what areas need some attention.

She has sought input from employees, medical staff and directors – she also

makes rounds to talk with patients and families – all part of this evaluation phase she will use to take action and move forward in an efficient way.

NURSE FIRST Launching her career as a registered critical care nurse in the 1970s before moving into management, Holt’s most recent experience was as vice president of quality and service line development for the HCA Mountain Division in Utah. She was also CEO of Methodist Children’s Hospital in San Antonio, Texas, and CEO of Indianapolis Women’s Hospital. She was chief operating officer and chief clinical officer of St. Mark’s Hospital (simultaneously) in Salt Lake City, Utah. She is a Fellow in the American College of Healthcare Executives and has 30 years experience in hospital administration.

Looking back, despite the senior executive positions earning her such high accolades, Holt says her frontline experience as a nurse more than 30

www.akbizmag.com • Alaska Business Monthly • June 2010

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NO. 1 RANKINGS More than ever, she keeps this topof-mind awareness as she leads about 1,000 employees to provide the best in treatment, technology and compassion.

“The value of our people is what we’re all about,” she says, adding that one of her top priorities is to continue to maintain Alaska Regional’s position as one of the best hospitals in the state.

Ed Lamb, her predecessor and the hospital’s CEO for 12 years, realized several accomplishments she will continue to build on, including earning the hospital many national recognitions in health care excellence such as the Hospital Quality Achievement Award from Mountain Pacific Quality Health in 2007, 2008 and 2009 – the only Anchorage hospital to receive this three years in a row.

Alaska Regional was also ranked No. 1 in five different areas in Alaska by HealthGrades, an independent health care ratings organization that rates hospitals and physicians for 28 procedures and diagnoses. Recent No. 1 rankings for Alaska Regional, awarded between 2008 and 2010, include overall cardiac services, cardiology services coronary interventional procedures, overall orthopedic services, and joint replacement.

Her primary focus during her first six months as CEO has been to establish goals, priorities and specific plans for achieving those benchmarks so the

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hospital gets more preferred provider contracts for patient care, while maintaining the level of service for patients and families, and at the same time expanding the ambulatory and inpatient services it can offer the community.

“We are trying to strike a good balance of being able to offer services that support the operations so we can absorb those that are not as profitable, but are still needed by the community,” Holt says, adding that last year Alaska Regional paid $13.1 million in State, federal and local taxes.

Photo courtesy of University of Alaska Anchorage

years ago also was critical in giving her a better understanding of how the processes in health care fit together. At the same time, though, it was one of her least favorite ways to get a different perspective on the health care field, being a patient at a hospital in the Lower 48 for several weeks is something she says every administrative person should do.

Holt compares it to the 1991 film “The Doctor,” where a physician experiences life as a patient, including the detachment of hospitals and even his own colleagues, resulting in him undergoing a transformation in his views about life, illness and human relationships.

As a patient, she says, she quickly learned a bad day at work is better than a good day of being sick. “I’ve heard other patients say that whoever is taking care of you can really make a difference in your day,” Holt says.

THE LURE Previous professional visits and vacations to Alaska with her husband played a big part in helping her make the decision to accept the job because, she says, both Alaskans and the hospital felt like a good fit for her. Although she recognizes the learning curve ahead of her, pursuing interesting and challenging jobs instead of just climbing the corporate ladder is what she contributes her career success and satisfaction to.

“Alaska is a unique market, which is exciting to me,” Holt says.

Besides just getting a handle on operations, there are issues such as staff and physician retention and recruitment, and learning the political scene in Juneau. At the same time, she is learning about special behavioral health care needs facing the state, resulting from substance abuse and addiction and the “downstream” problems that result from these.

In the meantime, she says, “We are constantly looking at ways we can continue to improve the quality of service.

Since we are the smaller of two acute care hospitals in the area, we are always striving to be better, not bigger. As I talk to current and former patients, they say it feels more like family here, yet we continue to receive the quality HealthGrade ratings saying that the care at Alaska Regional is No. 1 in Alaska in a number of areas.”

ISER’S NEW DIRECTOR When Dr. Heather Hudson took over as the new director of the Institute of Social and Economic Research (ISER) at the University of Alaska Anchorage, in many ways she says, it was like coming home.

Heather H h E E. H Hudson, d professor f and d director, Institute of Social and Economic Research (ISER), University of Alaska Anchorage.

Although her January arrival was on the heels of a fellowship as Fulbright Visiting Policy Research Chair at Carleton University in Ottawa, Canada, she has been working in Alaska on and off since the mid-1970s, when, as a Stanford graduate student, she evaluated the first use of satellites for telemedicine for the National Library of Medicine. Her work on the economic study of Alaska’s telecommunications industry contributed to the strategy for getting phone service into rural villages statewide, launching the beginning of operational satellite service.

Before returning to Alaska to lead ISER, she was a professor and director of the Communications Technology Management and Policy Program at the University of San Francisco. She was a Sloan Industry Fellow at Columbia University, founder of the new Technologies Program in the College of Communication at the University of Texas Austin, and was recently designated an Institute of Electrical and Electronics Engineers Communications Society Distinguished Lecturer. She also received two Fulbright Fellowships and holds a doctorate in communication research from Stanford University and a juris doctorate from the University of Texas. Her professional experience includes research on applications and effects of new communications technologies and policies to extend access to communications, particularly in

www.akbizmag.com • Alaska Business Monthly • June 2010

remote and developing regions. She also has developed and taught graduate courses in communications policy, international communications, communications project planning and evaluation, and trends in new technologies.

The UAA College of Business and Public Policy also has appointed Hudson as professor of public policy.

PAST ENCOUNTERS She returned to do research in Alaska in the ’90s, both to examine how Alaska’s rural communities were using Internet and the growth of satellite communications in schools and libraries, and to assess universal service policies that supported extension of Internet and broadband services to Alaska villages.

As the state’s oldest public policy research organization and part of the CBPP on the Anchorage campus, ISER’s mandate is statewide and research offers a broad look at the issues important in Alaska from the 1960s to date. Founded in 1961, it has a core staff of about 30 faculty members, research associates and support staff. It receives support from the university, but is funded largely through grants and contracts. Research is often used by media, policy makers and elected officials, and in many cases, Hudson says, ISER reports are written in direct response to specific needs for research.

As ISER prepares to turn 50 this year, Hudson says she is looking forward to celebrating the group’s accomplishments and using this major milestone to garner additional visibility by hosting special events and scholarly activities. At the same time, she is focusing on finding ways to increase ISER’s visibility and broaden the funding base, which includes reaching out to the community and making ISER’s research better known nationwide and internationally so it attracts more support.

“ISER’s pool of expertise can be applied in many different directions, including other regions with remote communities and significant indigenous populations,” – Heather Hudson, UAA professor and ISER director.

WHAT’S NEXT Working with her predecessor and UAA Chancellor Fran Ulmer, as Hudson recruits new people over the next few years to accommodate ISER’s expansion into new areas, she says she is very interested in expanding into research on impacts of climate change and finding someone who specializes in energy economics.

“Energy is certainly a key component of activity in the state and as we look at alternative energy sources, as well as the future of oil and gas, it will be valuable to have someone who has applied their knowledge in that area.”

Selected in part for her international reputation – she has conducted research in Alaska, northern Canada and more than 50 developing countries – Hudson recognizes that many parts of Alaska are similar to small, isolated communities in other countries and wants to share ISER’s expertise with developing areas that have similar living conditions and challenges.

“ISER’s pool of expertise can be applied in many different directions, including other regions with remote communities and significant indigenous populations,” Hudson said. “ISER is a hidden gem.”

Working with her new colleagues, she wants to take the institute to the next level, which includes making it more visible outside Alaska’s research and policy community, in addition to expanding research on the Anchorage campus and systemwide. One way to enhance ISER’s role as a think tank is by hosting visiting scholars. She also will focus on key priority areas where funding is available for long-term issues that existing staff can address.

While setting research priorities, Hudson says she also will continue to focus on bridging the gap between scholarly and everyday applications of ISER’s work by increasing its relevance so the information is useful to a wider range of audiences, from legislators and congressional representatives to communities, Alaska Native organizations and consumer groups.

“Everyone tells me what a terrific reputation ISER has,” she says. “Whenever they need help, ISER is at the top ❑ of their list.”

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www.akbizmag.com • Alaska Business Monthly • June 2010

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HEALTH & MEDICINE OP-ED

Electronic Medical Records Multidiscipline approach reaps rewards. rewards.

BY MARK MORONELL

O

ne of the fundamental necessities for the proper delivery of health care is the rapid and accurate dissemination of a patient’s medical information to associated providers, laboratories, hospitals and other health care institutions.

costs, but are unable to offer complete long-term solutions into the foreseeable future without continued dependence on grants, aid and other programs. At some stage in the process costs will need to be shifted to the end-user. The infusion of government capital upsets the natural balance of the free market.

PROBLEM

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SOLUTION Grants, aids, charitable donations and continued fiscal offering by government agencies can serve to raise awareness, but cannot cover the costs of long-term hardware and software upgrades, security needs, maintenance and support; keeping in mind also that for an EMR to be successful a provider will demand nearly 24/7 uptime, security and accessibility.

As with most complex problems, it is my belief that only through mobilizing and focusing resources from the private sector will this problem be eventually solved. The desire to lower costs, increase efficiency, improve the quality of life and the expectation of a reasonable financial return will be the guiding tenants for the eventual completion of this effort. Free market forces must be allowed to operate unhindered if there is to be hope of success, and acceptance from government, industry, academics, medicine and private citizens must be complete and unwavering. Herein is the application of vision as applied to business.

PARTICIPANTS ROLES Government – The federal government has already put in place stimulus

Photo by Judy Patrick

The lack of such services reduces efficiency, increases costs, impairs outcomes and can be responsible for increased morbidity and even mortality in the unforeseen instance. Electronic Medical Record (EMR) systems have been tagged as the means of reconciling these shortcomings.

Current initiatives by federal, state and local governments in association with charitable and not-for-profit institutions, hospitals, insurance companies and large physician practices are attempting to facilitate the introduction of EMRs through specialized incentives and programs, but are still in the process of establishing a common ground from which to build a foundation.

Targeted providers from all disciplines have expressed reluctance in the past to incorporating new technologies, such as EMRs or personal health records (PHRs), due to fears of productivity loss, decreased revenue, legacy fees and perpetual dependence on established systems.

Government agencies, eager to utilize stimulus monies to facilitate adoption of these technologies by constituents, are in a good position to help introduce and overcome initial

Mark Moronell, MD, FACC

money to be used as seed capital for providers looking to incorporate EMRs into their office settings. While this does not provide for covering the long-term costs of such technologies, it does offer a way to ease the burden of “making the leap” to computerized medical records. However, such actions can also foster dependency and therefore the government needs to limit in actions in this area and let the expectation of financial reward guide the infusion of future private capital.

The State Government in Juneau has begun to address this issue through agencies of its own. With stimulus money available the State may now be in a position to direct and oversee

www.akbizmag.com • Alaska Business Monthly • June 2010

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the introduction of these products to the marketplace (Senate Bill 133).

But the State needs to remember that its role is not business ownership or project management. Such activities are always best left to experts in the private sector.

Industry – Industry and the private sector, it is felt, should be the prime mover in this effort. Firms facile in the areas of IT, storage, security, software generation, project management, bandwidth, telemedicine, communications and data transfer should be recruited as needed to address key elements of system design.

Ac a d e m i c s – T h e value of incorporating the academic community in this effort is two-fold. The first is the capability for specialized departments to augment key industry positions in the development process and also to introduce students to high-tech opportunities within Alaska in the hopes of increasing retention and developing strong technical infrastructure in local communities throughout the state. Such a partnership will foster job creation, growth and retention.

Medicine – The medical community; functioning as eventual end-users, are required partners at all levels of development to assure acceptance and compliance.

Individuals – As with the medical community, the individual patient also will be a targeted end-user and therefore should be included.

Education in the form of marketing and other initiatives should be used as tools for this acceptance. Means

to overcome concerns about security, privacy, cost and control need to be explored.

CONCLUSION It has always been my belief the creation of a statewide EMR system can only be accomplished through the development of a comprehensive program that calls upon many disciplines, but is anchored firmly within the private sector. And it is only through the judicious application of vision, perseverance and with a realistic expectation of profit that success will be achieved.

Once accomplished, however, the benefits to patients, society and our great state will be reaped in abundance. ❑

About the Author Mark Moronell, MD, FACC, is an engineer, cardiologist and partner with the Alaska Heart Institute in Anchorage.

He is the previous owner of a software company and is an active proponent for the medical information technology industry in Alaska.

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www.akbizmag.com • Alaska Business Monthly • June 2010

HEALTHY WORKPLACES

Smoke-Free Workplace?

Lower health insurance premiums by promoting cessation programs.

BY JODY ELLIS-KNAPP

“Smoking is a tough nut to crack. Sometimes a person has to try several times before they are able to quit. People are trying, failing, trying again. It’s hard to see just how successful the program is when we are dealing with such a difficult issue.”

– Tyler Andrews • Vice President of Human Resources • Chugach Electric Association

A

nyone who has ever tried to quit smoking knows it is a difficult process. While we all know smoking is bad for you, the staggering statistics posted in a 2004 report by the Surgeon General highlight just how bad it really is. According to the report, cigarette smoking has been conclusively linked to diseases such as leukemia and other cancers, cataracts and pneumonia, with the toxins from smoking hitting nearly every part of the body.

Statistics indicate more than 12 million people have died from smoking since the original Surgeon General’s report on the topic in 1964, with another 25 million estimated to die from smoking-related health issues in the future. The report states it is never too late to quit: the body starts showing improvements and healing almost

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immediately, and even a person who quits in their 60s can reduce their risk of dying from a smoking-related disease by 50 percent.

With statistics like these, it seems like quitting should be a no-brainer, an easy health fix that is guaranteed to improve quality of life. But smoking also is considered one of the most difficult addictions to overcome, having been compared by some as having the same level of addiction as heroin.

Most people aren’t able to quit the first time they try. According to the American Cancer Society, it can take as many as eight to 10 tries before a person is successful.

‘ZERO TOLERANCE’ Many businesses now have a “zero tolerance” policy on tobacco, testing for it along with illegal substances, mak-

ing it difficult for a smoker to obtain employment in an already tough economy. Luckily, there is plenty of help out there for those who want to quit.

Some companies around Anchorage offer variations of smoking-cessation programs for their employees, from basic informational packets to more involved incentive programs. In addition, the State of Alaska’s Tobacco Prevention and Control Program is a statewide program that works to eliminate tobacco use. This program works with other entities to help people stop smoking, as well as putting out education and information that might prevent people from starting.

According to Jessica Harvill, cessation grant program manager and Alaska Tobacco Quit Line Manager of the State of Alaska program, part of their comprehensive effort includes

www.akbizmag.com • Alaska Business Monthly • June 2010

Legislative Session Closes Out

T

he Legislature closed out their business shortly before 1:00 am on Monday, April 19, 2010. With the adoption of the operating budget, the largest Capital budget in recent history, lower taxes for cruise ship passengers and changes in taxation for oil and gas, the Legislature adopted the fewest number of bills since 1993.

Issues of importance to Alaska State Chamber members fared well. A number of bills passed this session that were either priorities or positions of the State Chamber. They included the following bills: s "ALLOT )NITIATIVE REFORM BILL (" s 4HE 'OVERNOR S 0ERFORMANCE 3CHOLARSHIP program was implemented but not funded s -ONEY FOR %ARLY #HILDHOOD ,EARNING INCLUDED IN the operating budget s (EALTH #ARE #OMMISSION ESTABLISHED IN STATUTE s 5NIVERSITY OF !LASKA ,IFE 3CIENCES BUILDING included in the bond bill s 7ORKERS #OMPENSATION %XCLUSIVE ,IABILITY remained in place s #OASTAL :ONE -ANAGEMENT 0LAN REMAINS UNCHANGED Additionally, there were a number of bills passed RELATED TO THE DEVELOPMENT OF A #OMPREHENSIVE 3TRATEGIC %CONOMIC $EVELOPMENT 0LAN FOR !LASKA 4HE 3TATE #HAMBER BECAME INVOLVED A NUMBER OF OTHER BUSINESS issues at the request of our members, including changes to the State procurement code, Liability for Motor Carriers, cruise ship waste-water discharge issues and the cruise ship head tax. Many other issues did not make it through THE LEGISLATIVE PROCESS THAT WILL SURFACE AGAIN NEXT SESSION Most notably, an attempt to undo a Chamber-supported REFORM TO WORKERS COMPENSATION BY REMOVAL OF EXCLUSIVE LIABILITY RELATED TO 7ORKERS COMPENSATION CLAIMS AND the proposed changes to the Alaska Coastal Management 0ROGRAM 4HE 3TATE #HAMBER AND ITS MEMBERS NEED TO BE EVER VIGILANT AS THOSE ISSUES WILL POTENTIALLY HAVE A NEGATIVE INmUENCE ON THE ABILITY OF BUSINESS TO DO BUSIness in Alaska. We must not wait until the start of next LEGISLATIVE SESSION TO ENGAGE ON THESE ISSUES 7E NEED TO BE OUT FRONT AND BE ACTIVELY SEEKING SOLUTIONS

State Chamber Priorities %ACH FALL ALONG WITH A NUMBER OF POSITIONS THE 3TATE Chamber adopts its top priorities to work on during the UPCOMING LEGISLATIVE SESSION 4HIS YEAR THE TOP THREE 3TATE PRIORITIES WERE "ALLOT )NITIATIVE 2EFORM %NCOURAGE )NCREASED /IL AND 'AS 0RODUCTION AND ,IMIT 'ROWTH OF

'OVERNMENT TO &9 "UDGET ,EVEL 4HERE WAS ALSO ONE FEDERAL LEGISLATIVE PRIORITY /UTER #ONTINENTAL 3HELF /#3 CONTINUED OIL AND GAS EXPLORATION "ALLOT )NITIATIVE 2EFORM ,EGISLATION (" n )NTRODUCED AND SHEPHERDED THROUGH THE LEGISLATIVE PROCESS BY 2EPRESENTATIVE +YLE *OHANSEN n (" PASSED OUT OF BOTH BODIES AND IS AWAITING THE 'OVERNOR S SIGNATURE %NCOURAGE )NCREASED /IL AND 'AS 0RODUCTION n ! number of bills were introduced to deal with oil and gas TAXES THE MOST NOTABLE WAS 3" THAT WOULD HAVE SEParated the taxes for oil and gas. Senator Stedman, chamPION OF THE BILL BELIEVED STRONGLY THAT SEPARATING OIL AND GAS TAX RATES WOULD BE IN THE 3TATE S BEST INTEREST 3ENATOR Stedman raised concerns about the potential long-term LOSS OF REVENUE THAT COULD RESULT IF GAS AND OIL WERE STILL taxed under the current system when the open season for the gas line commenced on May 1. The bill set out a signiямБcant change in oil and gas taxes by decoupling THE INCENTIVES AND TAXES ASSOCIATED BETWEEN THE TWO DIFFERENT ENERGY SOURCES 'OVERNOR 0ARNELL VETOED THE BILL prior to the start of the open season by TransCanada AND %XXON !DDITIONAL BILLS WOULD HAVE PROVIDED INCENTIVES FOR EXPLORATION LIKE (OUSE "ILL OFFERED BY 2EP #RAIG *OHNSON 4HE BILL WAS A SIMPLE EXCHANGE TO THE COMPANIES THAT OPERATE EXPLORE AND INVEST IN !LASKA )T ENCOURAGED INVEST IN THE TYPE OF ACTIVITIES THAT LEAD TO increased oil production in Alaska, and in return, comPANIES WOULD RECEIVE THE CAPITAL INVESTMENT CREDITS ALREADY AVAILABLE TO OTHER INVESTMENTS 4HOSE COMPANIES WILLING TO RISK THEIR CAPITAL IN !LASKA WOULD RECEIVE A REASONABLE REWARD ON THEIR INVESTMENT -OST IMPORTANTLY

THOSE COMPANIES EMPLOYING !LASKANS WOULD RECEIVE AN additional credit against their taxes. While none of those bills ultimately passed, the prospect of similar legislation being introduced next session is excellent.

4HE !LASKA 3TATE #HAMBER OF #OMMERCE IS A # NONPROlT CORPORATION WORKING TO PROMOTING A POSITIVE BUSINESS ENVIRONMENT IN !LASKA !S h4HE 6OICE OF !LASKA "USINESS v WE ARE A TRUSTED RESPECTED POLICY OPINION leader. We are the business organization, that all turn to when questions about business issues arise. We encourage businesses to join with us to make Alaska a great place to work and do business.

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the Cessations Intervention program.

“It has two primary components,” she says “The Cessations Interventions grant program and the Alaska Tobacco Quit Line. The Cessations Interventions program provides funding to health care centers throughout Alaska, addressing tobacco cessation within their service area. Many sites coordinate with local businesses to promote cessation services and the Alaska Tobacco Quit Line (1-800-QUIT-NOW) is a free service providing tobacco cessation services to all adult Alaskans.”

EDUCATION KEY The program supports a wide variety of various tobacco prevention and cessation educational plans. They have built a comprehensive tobacco prevention program that includes media, the Tobacco Quit Line, school and community programs and partnerships with nonprofit and tribal organizations.

“Our goal is to address the problem of tobacco-related death and disability from many angles,” Harvill says.

The Tobacco Quit Line has been one of the more successful facets of the program, with individualized quit plans, personal coaches and nicotinereplacement therapy. Harvill states thousands of Alaskans have utilized the Quit Line since its inception in 2002, with an estimated 40 percent success rate.

Harvill says since the implementation of the State’s tobacco prevention and cessation program in the 1990s, there has been a significant decrease in tobacco use in Alaska. Youth smoking has been reduced by half since 1995 and adult smoking also has declined significantly.

EXPANSION ON FOREFRONT The program’s future includes a continued focus on expansion of its

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current comprehensive tobacco-prevention and -cessation efforts.

“While we have seen a significant decrease in tobacco use in Alaska, there are still certain groups and populations with a disproportionately high rate of tobacco-related deaths and disability,” Harvill says. “We will continue to develop programs to assist groups in addressing tobacco use in their communities and in successfully quitting.”

“Many businesses have instituted strong workplace clean-indoor-air policies, which helps support quit attempts amongst their employees who use tobacco,” she says. “The Alaska Tobacco Control Alliance, a statewide coalition, also works to increase the use of Pictured are various effective examples of stop cessation resources by smoking ads from Alaska’s Tobacco Quit Line. businesses and individuals throughout the state.”

ONE SUCCESS STORY Harvill adds that while the state Tobacco Prevention and Control “We’ve always offered some kind of program does not work directly with smoking-cessation assistance to our businesses, it does respond to requests employees, including reimbursement for Alaska Tobacco Quit Line materi- for purchase of the patch and such,” als. These materials are provided free says Tyler Andrews, vice president of to all businesses wishing to promote human resources for the company. “In this service to employees, and include 2009, we added incentives to our wellposters, displays and reminder cards ness programs in regards to quitting with the Quit Line phone number on smoking. Smoking is attached to so it. Harvill recommends businesses many health issues, our goal is to have wishing to receive Alaska Tobacco healthier employees and as a result, Quit Line materials should call 907- lower rates of absenteeism and illness.”

Chugach’s enhanced program came 269-0465 for more about as a result of one of their insurinformation.

While many Alaska ance providers offering incentives to businesses choose go along with the wellness program, a hard-line stance encouraging the company to develop against smokers in the program further.

“Through our wellness program, the workplace, one company that strives we have built up a smoking-cessation to provide incentives program in which I would say at least and motivation for one-third of our employees have partheir employees to quit ticipated in at various times,” Andrews smoking is Chugach says. “Each employee gets their own personalized account where they can Electric Association.

www.akbizmag.com kbi • Alaska Business Monthly • June 2010

track their success rates as they attempt to quit. The results are tracked through a third party, from which the insurance company gets aggregate data.” When asked about the success rate of the program, Andrews says that is where it gets difficult.

“We struggle with the data on that.

So much of the program involves taking people at their word, trusting that the information we are given is accurate.

Smoking is a tough nut to crack. Sometimes a person has to try several times before they are able to quit. People are trying, failing, trying again. It’s hard to see just how successful the program is when we are dealing with such a difficult issue.”

Chugach plans to continue to enhance its program, with more education and activities throughout the year, as well as more varied wellness programs. It also plans to focus more on the Great American Smoke Out, a yearly event organized by the American Cancer Society in which the public is encouraged to stop smoking for 24 hours. Traditionally held on the third Thursday in November, the Smoke Out supports smokers in their efforts to quit by showing they can quit for at least one day.

“We realize quitting smoking is not an easy thing to do,” says Andrews.

“While other employers might be more aggressive in taking a stance against their employees smoking, our focus is on trying to provide positive incentives to quit, as opposed to negatives.”

With a positive spin on assisting employees to quit, Chugach seems to be on track for maintaining a healthy work environment and improving the overall health of its staff. Programs such as Alaska’s Tobacco Prevention and Control Program and the Tobacco Quit Line can give both businesses and their employees the additional incentive and help needed to aid workers in smoking cessation. As a result, businesses can enjoy perks such as reduced insurance premiums, fewer employee sick days and a workplace that is healthier for all employees and management. Smoking may be one of the toughest addictions to kick, but with continued State and local support, it looks like it might be getting a little easier for smokers to ❑ break the habit once and for all. www.akbizmag.com • Alaska Business Monthly • June 2010

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REGIONAL REVIEW

BY TRACY BARBOUR

Resilient in tough times.

Photos by Debbie Cutler

S

Downtown Juneau.

Sitka at a Glance Population: About 9,000 Location: On the outer coast of the Alaska panhandle on the west side of Barnanof Island Government Structure: Assembly-municipal administrator form of government with an elected mayor and assembly members Key Contacts: Mayor Scott McAdams and Sealaska Corp. President Chris E. McNeil Jr. Main Industries: Government, tourism, fishing and mining Major Hospitals: Sitka Community Hospital and SEARHC (Southeast Alaska Regional Healthcare Center) Schools: University of Alaska Southeast-Sitka Campus Airport: Sitka Rocky Gutierrez Airport Port: Sitka Harbor

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outheast is like no other region in Alaska. Commonly referred to as the panhandle, Southeast is a vast expanse of glacier-forged fjords and islands covered with dense rainforest.

Geographically, the region lies west of the northern half of the Canadian province of British Columbia and includes the islands of Admiralty, Chicagof, Baranof, Kuprenof, Revillagigedo and Prince of Wales. Southeast communities include Juneau, Sitka, Haines, Prince of Wales, Yakutat, Ketchikan, Wrangell and Petersburg.

Much of Southeast sits within the Tongass National Forest, the United States’ largest national forest and Earth’s largest remaining temperate rainforest. The forest is named for the Tongass group of the Tlingit people, who inhabited what is now Ketchikan. Today, a number of Alaska Native tribes live throughout Southeast, such as the Tlingit, Haida and Tsimshian. The region’s total population is about 70,000.

TOURISM-RELATED JOBS DECLINE Southeast Alaska has a diverse economy that is tied to four major drivers: fishing, tourism, mining and government. Despite its economic diversity, last year was a tough time for the region.

The Southeast lost about 750 jobs in 2009, due in large part to the nation’s deepest and longest recession since the Great Depression, according to a January Alaska Economic Trends report by Alaska Department of Labor Economist Joy Wilkinson. That was a 2 percent decline – the largest drop in at least 35 years. The second-largest decline

www.akbizmag.com • Alaska Business Monthly • June 2010

during those years was in 1998, when Southeast lost about 650 jobs, a year after Ketchikan Pulp Co. closed its mill.

However, the Southeast’s job losses were mild compared to what the country as a whole has experienced, Wilkinson said in the report. She added: “Through the first 11 months of 2009, the U.S. job count was down by 3.8 percent over the year – a percentage loss that was almost twice as high as Southeast.”

In a March interview, Wilkinson expressed ambivalence over the Southeast’s decline in jobs. “It’s surprising because of the magnitude,” she said.

“At the same time, it’s not too surprising because we have a recession.”

The Southeast’s retail, tourism, and leisure and hospitality industries were among those hardest hit in 2009. Some 500 jobs were lost in retail trade and leisure and hospitality that year, according to Wilkinson. The retail industry alone lost 250 jobs for a 5.3 drop – the steepest decline since 2001. Consequently, Juneau’s revenue declined 10.2 percent during the first three quarters; Skagway’s declined 8 percent.

At the same time, some industries – like health care and fishing – gained jobs. But not all jobs are created equal, according to Wilkinson. “Some industries, like mining, logging and construction provide fewer jobs, but those jobs pay much higher wages than tourismrelated industries,” she says.

“Government – which provides stable, year-round employment – traditionally generates more jobs than any other sector in Southeast, providing 37 percent of total payroll jobs in 2009. This year, government employment is expected to increase slightly. Seafood processing employment is expected to hold steady in 2010, and the outlook for mining employment is also positive.”

However, a big setback for Southeast this year will be the loss of cruise ship passengers. Several companies have pulled ships from Alaska, and total cruise ship visitors to Southeast are expected to fall by about 15 percent in 2010. The loss of passengers will have a significant impact, Wilkinson says.

“They would have spent money, and that will affect the local economy,” she says.

In terms of unemployment, Southeast had a rate of 10.5 in January 2010,

according to Wilkinson. Unemployment rates varied widely around the region, ranging from 7.3 percent in Juneau and 8.7 percent in Sitka to 21.6 and 28.3 percent, respectively in Skagway and Hoonah-Angoon – a rural area with limited opportunities.

In addition to job losses, the region also is facing a gradual decline in population. Between 2000 and 2009, the population decreased about 5 percent. Wilkinson attributes the decline to the disappearance of jobs and educational opportunities.

“Most of the people moving out of this region are younger, in their early 20s,” she says. “They usually move to Anchorage and various cities in the Lower 48.”

FEWER GOVERNMENT JOBS About half of the Southeast’s population lives in the capital city of Juneau, which boasts slightly more than 30,000 residents. Juneau is uniquely situated on the Gastineau Channel, where it’s surrounded by lush vegetation and beautiful mountains. Larger than the state of

www.akbizmag.com • Alaska Business Monthly • June 2010

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Tourists viewing Juneau and the cruise ship docks from West Juneau deck on Douglas Island.

Rhode Island, Juneau spreads across a mainland and sections of Douglas Island. It sits about 900 air miles north of Seattle and 600 air miles southeast of Anchorage.

Juneau has been the capital of Alaska since 1906, when the government of the then-Alaska Territory was moved from Sitka. Named after gold prospector Joe

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Juneau, it was originally called Harrisburg after Mr. Juneau’s co-prospector, Richard Harris.

Key industries in Juneau are government, tourism, mining and seafood.

Health and social service providers, the construction industry and Alaska Native organizations also have a major impact on the local economy.

Historically, the city’s economy has been stable, according to the Juneau Economic Development Council’s Juneau Economic Indicators 2009 report.

Released in September 2009, the report looked back at Juneau’s 2008 numbers.

The report indicates that the chief source of Juneau jobs and income is the State government, with 4,211 employees in 2008. That year, the State accounted for 23 percent of all Juneau jobs and 27 percent of all local wages.

Juneau’s largest state employer is the Alaska Department of Transportation and Public Facilities, with more than 700 employees.

Juneau’s federal employment sector features nearly 30 agencies. Its biggest federal employer is the U.S. Coast Guard, with about 350 employees. The next-largest federal employers are the Forest Service and the National Oceanic and Atmospheric Administration, each having more than 200 workers.

Though Juneau’s history was shaped by gold, the city is heavily dependent on state and federal government employment. However, that’s steadily changing. According to the report: “Even while overall Juneau jobs are up, Juneau continues to lose State and federal jobs at an alarming rate. Since 2003, the city has 453 fewer State and federal employees. In 2008 alone, 70 more of these jobs left the city, resulting in a direct loss of $25.7 million in annual local wages.”

Those losses represent highly coveted, high-paying positions. Juneau State employees earned an average $48,571 in 2008 – which was 17 percent higher than the city’s overall average wage and 36 percent higher than its average private-sector wage. Federal employees earned an average $79,935 in 2008, more than double the privatesector average of $35,796.

Juneau’s largest private-sector employment comes from tourism.

In 2008, the local tourism industry had 2,230 workers and a payroll of $75 million. The city’s single largest private employer was Hecla Greens Creek Mining Co. With about 300 employees, the mine on Admiralty Island is the second-largest silver producer in North America and the sixth-largest in the world.

www.akbizmag.com • Alaska Business Monthly • June 2010

Earlier this year, Sitka was named among the National Trust for Historic Preservation’s Dozen Distinctive Destinations. The city was chosen for its diverse culture that includes the heritage of Alaska Native tribes, 19th century Russian settlers and Alaska frontier history.

“We’re really proud of that,” Kidd says. “We think it will help bring in nontraditional travelers.”

SITKA ECONOMY DOWN IN 2007

Visitors walk through Marine Park near the ship docking area in downtown Juneau.

SITKA’S HISTORY Perhaps no other place in Alaska has a more distinctive history than Sitka. It was founded in 1799 by Alexander Baranov, the governor of Russian America. In 1808, Sitka was designated the capital of Russian America. Then in 1867, when the United States purchased Alaska from the Russians, the transfer ceremony was held in Sitka, and Sitka became Alaska’s first capital city.

With an estimated 9,000 residents, Sitka is Alaska’s fourth-largest city by population and the largest city by area in the United States. Sitka is four times the size of Rhode Island and spans two islands: Baranof and Japonski.

Sitka is the “natural place to visit,” according to its official website. Sandy Lorrigan, executive director of the Sitka Convention and Visitors Bureau agrees.

Sitka has an abundance of natural scenic beauty that appeals to residents and visitors alike. “It’s a charming seaside city surrounded by spectacular beauty with so many unusual treasures to find, from history to Native culture to outdoor adventure and even the wildlife,” she says. “It’s amazing all the things that are here in this one little area.”

While there’s no definitive way to track independent visitors, as many as 200,000 people have visited Sitka annually, Lorrigan says. Increasingly, more families are traveling to the city.

Visitors can indulge in a variety of unique events and festivals, such as

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the Sitka Summer Music Festival, the Alaska Day Festival, the Whale Fest and a Jazz Festival.

“Our festivals are a taste of Sitka that most people from the outside might not see,” Lorrigan says.

This summer, Sitka will be celebrating the 100th birthday of Sitka National Historical Park, Alaska’s oldest national park.

“We have events that we’re sponsoring throughout the year, including the dedication of a centennial robe, a reunion of former park employees, cultural exchange and a totem pole raising,” says Dusty Kidd, lead planner for Sitka’s Centennial Planning Team.

The park, which gained national exposure in Sandra Bullock’s film, “The Proposal,” receives 250,000 to 300,000 guests annually, according to Kidd. Many visitors are drawn by its world-renowned collection of nearly 20 totem poles. The poles are replicas of the original monumental sculptures brought in by the Haida Indian tribe from 1901 to 1906.

Sitka is distinguished by cultural and historical influence. There are 22 buildings and sites in Sitka that appear in the National Register of Historic Places. The Russian Bishop’s house – constructed in 1842 and later restored – is one of them.

“I would say that Sitka is, arguably, Alaska’s most historic city,” says Kidd, who was born and raised there.

Sitka has a well-balanced economy driven by seafood, health care, government, retail and wholesale trade, and leisure and hospitality, according to the State of the Sitka Economy 2009 Update by the McDowell Group Inc. Each of these areas accounted for more than 10 percent of Sitka’s total employment in 2007 (the most recent data available when the report was completed).

Total government employment made up 27 percent of all 2007 jobs – most of which were within local government.

Seafood harvesting and processing is one of Sitka’s top industries in terms of employment and earnings. In 2008, for example, 445 active Sitka resident fishermen, plus their crew fished 734 commercial permits and landed 23 million pounds of fish with an “exvessel” value of $36 million.

“Sitka’s shore-based seafood processing produced an estimated 39 million pounds of finished product, worth $89 million in first wholesale value and accounting for nearly one-quarter of Southeast regional land-based processing activity,” according to the report.

Overall, Sitka’s local employment during the first two quarters of 2008 was down compared to the same period of 2007.

“These numbers reflect the loss of Sheldon Jackson College, as well as SEARHC and U.S. Forest Service cutbacks seen over the course of 2007.”

Despite the employment losses in Sitka and other Southeast cities, Wilkinson is optimistic about the region’s economy. Each time it has had a setback, there has always been a comeback, she says.

“History demonstrates the resiliency of the Southeast economy to survive and prevail during tough times,” ❑ Wilkinson says.

www.akbizmag.com • Alaska Business Monthly • June 2010

ALASKA THIS MONTH

BY NANCY POUNDS

Colony Days Honors Palmer Settlers

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magine choosing to relocate your family from economically stricken Minnesota or Michigan to distant Alaska as part of a Depression-era federal program. About 200 families were chosen to participate in the program for each to claim and cultivate 40 acres of land in the Matanuska Valley.

The labor was intense to excavate farmland by hand.

Colonists perhaps longed for familiar things from home and the intimacy of extended family relationships. But the opportunity to pursue a life in Alaska probably eclipsed a bleak outlook at their previous towns.

Palmer’s community festival, Colony Days, remembers the hard work of those long-ago settlers.

Sponsored by the Palmer Chamber of Commerce, Colony Days is June 11 to 13 in downtown Palmer and at the State Fairgrounds.

HONORING COLONISTS The festival honors the Colonists, especially this year, which marks the 75th anniversary of the settlers’ arrival, said Jillyan Webb, executive director of the Palmer Chamber of Commerce.

“Palmer has so much history,” Webb said. “The festival is also a chance for the community to come together and have a lot of fun.”

And for Palmer children to learn the history of the area and join healthy activities outside, she added.

Colony Days typically features, on Friday, an antique car rally, preliminary heats of the bed races and an ice cream social. Saturday’s activities include a parade, children’s games and bed-race finals. Palmer’s Friday Fling, which features crafts and food, will run all three days.

The chamber began sponsoring Colony Days in 1985, according to Sara Jansen, a longtime member of the chamber events committee. Descendants of the colonists held annual gatherings until 1985 when the Palmer Midsummer Festival was united with the Colony celebration for the 50th anniversary, Jansen said. The festival unites Palmer residents with an emphasis on a unique history.

“It’s important to the community because it’s important to remember how Palmer really started to grow,” Jansen said.

Also, she loves to see people having a good time and relishes organizing area events. Jansen considers Colony Days the June Palmer Party.

75TH ANNIVERSARY EVENTS Events like the parade and bed races will feature the 75th anniversary theme, said Marcie Bentti, another events committee member. A tent similar to the colonists’ first Palmer

dwelling in 1935 will be set up at the visitors center, she said.

Bentti’s family was one of the original Palmer colonists.

She also works with the colonists group, which is planning events at the State Fairgrounds during Colony Days.

A dinner is planned for Saturday at Raven Hall, and a picnic is set for Sunday.

Events are open to the public, she said.

A new health fair joins Colony Days this year, Webb said. Local health-care providers will sponsor the health fair, which will be held in conjunction with the Friday Fling market, Webb said.

A quilt walkabout will feature 12 quilts displayed at Palmer businesses. Quilt viewers can obtain stamps in a passport and submit it in a drawing to win a quilt. A karaoke contest also joins the 2010 Colony Days lineup.

Regular events include a petting zoo sponsored by the Winner Circle 4-H Club and games, like an egg toss and a three-legged race.

Webb has been executive director of the Palmer chamber for about a year. She is excited about special events planned for this year’s 75th anniversary celebration.

“I can’t wait to meet some of the colonist kids’ families this year,” she said.

Webb said she treasures the community spirit resounding throughout downtown Palmer during Colony Days. She enjoys the ice cream social and the vintage car rally, but said it’s hard to pick a favorite event.

Webb also retold the story of last year’s bed-race final heat, which pitted the chamber team against the IBEW team.

Pajama-clad teams of four pushers and one bed rider trundle a wheeled bed down a course and perform various feats at different stations before trotting to the finish line. Last year the IBEW team won by a half-second.

“I’m looking forward to the rematch,” Webb said.

For more information and a schedule of events, visit www.palmerchamber.org. ❑

www.akbizmag.com • Alaska Business Monthly • June 2010

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Image courtesy of Palmer Chamber of Commerce

Festival marks colonists 75th anniversary.

Randa’s Guide Service, LTD

44ROPHYÙ4ROUTÙ Ù#HARÏ&LYFISHINGÏ3ALMONÏ(ALIBUT H 4 T #HH &L FII HII 3 L ( LI Join me on the Kenai River for a “Businessman’s Special” You bring your customers and your company presentation, I’ll bring the Gourmet Shoreside Lunch.

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Alaska Kitchen Garden

1 to Sept. 11

Enjoy a free exhibit at the Alaska Botanical Garden entrance located at 4601 Campbell Airstrip Rd. View a colorful display of vegetables, herbs, fruit and edible flowers. This harvest is donated to Bean’s Café and the Food Bank of Alaska. For more information, phone 907-770-3692.

Festival of Flowers

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www.randafishing.com ~ (907) 262-9494

The flower season begins with a fundraiser for the City of Flowers program in Downtown Anchorage, Town Square and on E and F streets, noon to 6 p.m. Come celebrate with music, art vendors a flower auction and educational seminars and flower walks presented by master gardeners. Proceeds from the fundraiser will go to the City of Flowers endowment fund. For more information, phone 907-279-5650 or visit www.anchoragedowntown. org/events.

Paint Mania Festival

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Dad’s shaving cream makes great art and squirt guns make rainbows, or mark your foot steps with colored feet. Try these and other creative art booths to paint your world at the Paint Mania Festivals. Pre-registration is required. For more information, phone Rebecca Simcox 907-343-4130 or visit www.muni.org/parks.

Sand Castle Beach Party

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Visit Goose Lake between 1 p.m. and 3 p.m. to play volleyball, Frisbee or enter the sand castle building contest. Anchorage Sand and Gravel is donating a special truck load of sand just for this event. Bring your Super Soaker, picnic and toys for a day of family fun and summer entertainment. For more information, phone 907-343-4138 or visit www.muni.org/parks.

Art in the Garden

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This annual silent auction event held in the gardens of Alaska Mill and Feed features the work of local artists and garden art as a fundraiser for Friends of Pets. For more information, phone 907333-9534 or visit www.friendsofpets.org.

Downtown Summer Solstice Festival

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FOR SALE: Commercial Business Property – Sitka, Alaska 1.12 acres, currently operating as a 22 unit mobile home park – Offered at $800,000

Featuring the Hero Games along Fourth Avenue, Humpy’s Solstice Concert in Town Square and the Fourth Avenue Family Festival.

Fourth Avenue is hub of activity from noon to 5 p.m., and then the fun shifts to Town Square for an evening concert under the midnight sun. For more information, phone 907-279-5650 or visit www.anchoragedowntown.org/events/.

13th Annual Garden Fair and Art Show

26 to 27

Family fun, garden art show, craft and plant vendors, demonstrations, Children’s Village, show of alpine and rock garden plants, music and food court at The Alaska Botanical Garden, 4601 Campbell Airstrip Rd. Admission: $5 per person. Age 2 and under are free. For more information, phone 907-770-3692 or visit www.alaskabg.org.

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5 to Sept. 4 Further details at: www.colestrailercourt.com

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U N C T I O N • • • • •

Highway’s End Farmers Market

The farmers market is held at “The Triangle” at the end of the Alaska Highway across from the Visitor’s Center. Shop for fresh

www.akbizmag.com • Alaska Business Monthly • June 2010

J UNE E VE N TS C A L E N D A R local produce. Saturdays, 10 a.m. to 6 p.m. For more information, phone 907-895-5068 or e-mail deltacc@deltachamber.org.

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Farmers Market

1 to Sept. 7

Tuesdayâ&#x20AC;&#x2122;s farmers market with produce, quilt and various craft vendors. Located across from Eagle River Fire Department, on Eagle River road 3 p.m. to 7 p.m. For more information, phone Lynn Mattison, 907-696-4839 or e-mail mattison@ak.net.

Alaska Scottish Highland Games

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The 29th annual Alaska Scottish Highland Games will be held at the Eagle River Lions Park. Enjoy Ceilidh band from Scotland, along with a number of professional athletes from all over the United States. For more information, phone 907-306-8400 or visit www. alaskascottish.org/games.html.

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24th Annual Summer Folk Fest

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A free community festival with a mix of folk, jazz, blues and more, offering an entire day of entertainment in a comfortable, family setting at Fairbanks North Star Borough Pioneer Park. For more information, visit www.alaskasbest.com/fairbanksfolkfest/ summerfolkfest.htm

Midnight Sun Cruise-In & Car Show

18 to 20

A celebration of vintage cars, including evening cruises, a car show, Dennis Gage from the Speed Channel, steam car demonstrations and activities at the Fountainhead Antique Auto Museum. Show off your ride or just check out the cars. Free for spectators, $20 fee to enter a car in the show. For more information, visit www.fountainheadhotels.com/auto/ or e-mail projects@fdifairbanks.com.

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18th Annual Kluane Chilkat Bike Relay

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From Haines Junction, Yukon Territory, Canada, to Haines, Alaska, 160 miles through Kluane Park and the Chilkat Bald Eagle Preserve.

For more information, phone Judy Ewald 907-766-2455 or visit www.kcibr.org.

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Creatures of the Dock Tours

Join the Center for Alaskan Coastal Studies staff on an unforgettable one-hour tour of the Homer Harbor and experience the amazing intertidal critters that can be found on our docks. For more information, phone 907-235-6667 or visit www.akcoastalstudies.org.

3 to Aug. 26

Wilderness Survival

Thursday program, teaching 8- to 11-year-old youth how to survive in the wilderness. Includes building shelters, orienteering, fire building, medicinal, edible plants and more. For more information, phone 907-235-5266 or visit Wynn Nature Center, 1.5 miles E. Skyline Dr.

12 to 13

Nancy Clooney Memorial Cup

Saturday race to Seldovia, noon start, Sunday race back to Homer.

Visitors wishing to crew in cup races may e-mail ahead of time to

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www.akbizmag.com â&#x20AC;˘ Alaska Business Monthly â&#x20AC;˘ June 2010

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J UNE E V E NT S C A L E NDA R cvdaley@yahoo.com, or show up at the skippers’ meeting on P Float in the Homer Harbor at 11 a.m. on race day. For more information, visit www.homeryachtclub.org.

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Juneau Dance Unlimited Cruise

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Guided whale-watching cruise by the experts at Allen Marine, along with delicious hors d’oeuvres, wine tasting and silent auction. The fundraiser benefits Juneau Dance Unlimited. For more information, phone 907-463-5327 or visit www.juneaudance.com.

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Kenai Peninsula 500

10 to 12

To successfully complete this challenge you will ride the entire Kenai Peninsula in one day, totaling 500+ miles. Hosted by the Kenai Peninsula Chapter 8150 of Harley Owners Group (HOG). This is the very first state rally to be held on the Kenai Peninsula. For more information, visit www.akstatehogrally.com.

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Central Kenai Peninsula Farmers Market

5 to Sept. 25

Saturdays from 10 a.m. to 2p.m. at the intersection of East Corral Avenue and Kenai Spur Highway. Shop for fresh vegetables and other produce. For more information, phone Clayton Hillhouse 907-262-5463 or e-mail clayton@alaska.net.

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4 to 25

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I T K A • • • • • • • • •

Sitka Summer Music Festival

The Festival begins the first Friday in June and lasts three weeks with a full calendar of events, including concerts on Tuesday and Friday evenings, and one Saturday evening performance.

For more information, phone 907-277-4852 or visit www.sitkamusicfestival.org.

7 to July 11

Sitka Fine Arts Camp

Since 1973, The Fine Arts Camp has been attracting students ages 12-18 from Alaska and beyond to study the fine arts of theatre, dance, music, visual arts, writing and Alaska Native arts. First-class professional artists and skilled teachers are recruited throughout the country. Various dates for camps, for more information, phone 907-747-3085 or visit www.fineartscamp.org. ❑

If you would like your event featured in the Events Calendar, send details at least two months prior to scheduled affair to Elaine Collins at circ@akbizmag.com.

Events are placed at no cost on a space-available basis. For more information, call 907-276-4373.

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www.akbizmag.com • Alaska Business Monthly • June 2010

H R M AT T E R S

BY LYNNE CURRY

Getting the Right Employees Multi-staged hiring process recommended.

Clearly, employers that want committed, productive, long-term employees need effective strategies for hiring the employees who both fit into the work group and can emotionally commit to a job and the employer.

E-MAIL QUESTIONNAIRES Although employers need to ascertain these subjective issues when making hiring decisions, they also need to avoid unintentionally discriminating against applicants in protected categories. In Alaska, legally protected categories include race, color, age, sex, national origin, religion, disabilities, parenthood, pregnancy and marital status or changes in marital status.

Employers can best balance the twin challenges of avoiding illegal discrimination while ferreting out job fit and commitment problems with a several-stage hiring process. We recommend that our clients initially e-mail applicants 15 to 30 questions aimed at job fit, motivation and job satisfaction.

Not only does an e-mail questionnaire screen-in or weed-out great or poor applicants, the process also saves our employers time and effort by avoiding in-person interviews with applicants whose written responses show problems and applicants who lack sufficient work ethic and job interest to respond to the e-mail questionnaire.

©2010 Ch Chris i A Arendd

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ccording to a recent Gallup poll, 30 percent, or less than one-third, of American workers describe themselves as “engaged” in their jobs and committed to their employers. A larger number, 54 percent, describe themselves as “disengaged” at work and not committed to their employers. These employees report feeling trapped in dull jobs and admit they spend significant amounts of time researching alternative jobs. The final 16 percent define themselves as “actively disengaged,” often becoming organizational terrorists who intentionally sabotage other employees’ morale.

A recent University of Minnesota study of 1,532 newly hired exempt employees holding positions in administration, engineering, IT, marketing and service job categories reveals that “engaged” employees differ from “disengaged” employees from their first day of hiring.

From early on, disengaged employees don’t emotionally commit to the organization into which they’ve been hired.

Significant reasons for this stem from the applicant’s work orientation and the fact that these new hires don’t feel they align with their coworkers’ values or the work-place culture and don’t feel that they receive sufficient coworker approval. During the course of the 20-month study, 98 of the disengaged employees quit their jobs.

Lynne Curry

Sample e-mail questions include: 1. What puts you in the job market?

2. What did you like most in your last (or current) job?

3. What did you like least?

4. If you were offered two jobs, what are the factors that would lead you to choose one job over the other?

5. What qualities do you hope to see/hope not to see in a supervisor?

6. What’s your experience with working in a fast-paced environment? With working under pressure?

A larger number, 54 percent, describe themselves as “disengaged” at work and not committed to their employers.

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www.akbizmag.com • Alaska Business Monthly • June 2010

The final 16 percent define themselves as “actively disengaged,” often becoming organizational terrorists who intentionally sabotage other employees’ morale.

7. Assuming you get this job, where (professionally) do you want to be in a year?

In two years?

8. If we ask them, what would your coworkers say when describing you?

9. When we ask them, what will your former supervisors say when describing you?

10. If you took this job hoping it was an “A” job, what would be the small things that might disappoint you that would make it an “A-” or a “B+” job?

11. What’s your learning curve?

12. Please describe your work ethic.

13. What attracts you to this job?

14. What salary are you hoping for?

15. If 10 is judgmental and zero is nonjudgmental, how would you rate yourself?

16. What is your Achilles’ heel or downside, in a work sense?

17. What salary is too low?

FOLLOW-UP SCREENING In follow-up in-person interviews, we recommend asking applicants to take the interviewer on a guided tour of their resume, starting four jobs back. This process helps prospective employers gain a sense of what the applicants wants in a next job and also gives them a sense of how the applicant reacts in job situations, revealing applicants who blame past supervisors or coworkers for “making them” leave jobs in preference to taking responsibility for their own part in problems.

Next, employees who interview wonderfully, yet fail to live up to their promises, generally fall into one of three categories: those not wellmatched to a job, those who lie well and those who don’t know themselves well and so present a falsely positive picture of their skills and qualities.

While interviewing often helps you decipher applicants who fall into the first category, only thorough reference checking helps you avoid the second two categories of poor hires.

Effective reference checking depends on your ability to get through to those who have the information you need. If an applicant offers you references from personal friends or coworkers rather than supervisory references, consider this a red flag. If you plan to supervise this employee and want the real scoop, you need to interview your prospective applicant’s past two or three supervisors.

Once you get the supervisor on the phone, ask questions that go beneath the surface. You can ask questions such as: ■ “How does this employee relate to her supervisor?”

■ “How does this employee handle conflict situations?”

■ “What types of work situations demotivate this employee?”

■ “Tell me about this employee ‘chatting’ with coworkers.”

If you reach a supervisor who won’t talk or says company policies prohibit giving reference information, say, “Okay, there’s one interesting question that isn’t about the applicant but more about the supervisor,” and then pause.

I’ve never had a situation in which the supervisor didn’t say, “So, what’s the question?”

Then ask, “What type of supervisor would be the best match for this employee?”

This question gleans answers such as: “Someone who doesn’t try to supervise,” or, “I know I’ve never met the person who might be right,” and, “Mother Theresa.”

If even that question fails to get the supervisor talking, ask if you can fax a waiver signed by the applicant to the former supervisor or personnel office. By signing a waiver, the applicant authorizes former employers to say whatever they want and “releases all persons, firms, agencies or companies from any damages resulting from furnishing such information.”

Do you want to hire the right employee? Start with e-mail questions, follow-up with probing inperson questions and detailed reference checks. The gain – you find an engaged, committed employee that cares enough about your job to work ❑ hard and succeed.

About the Author

Dr. Lynne Curry runs an Alaska-based management consulting firm with 3,500 clients in 14 states and three countries.

Her company specializes in management training and provides HR on-call services to clients. Her team includes a JD (attorney), an MPA (Masters in Public Administration) and an SPHR (Senior Professional in Human Resources). For details, check out www.thegrowthcompany.com or call Lynne, Andy or Jolette at 907-276-4769.

“Breaking News: What Managers, Business Owners and Supervisors Need to Know about the Newest Legal Changes Impacting Personnel Management,” less than two hours of your time on June 23 could save you millions in unexpected costs over the next couple of years. Presented by Andy Brown, this session from 8 a.m. to 9:45 a.m. ($35) will pay off. www.akbizmag.com • Alaska Business Monthly • June 2010

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OIL & GAS

Image courtesy of Denali - The Alaska Gas Pipeline

Denali’s Gas Treatment Plant on the North Slope.

OPEN SEASON for Natural Gas in Alaska TransCanada, ExxonMobil, ConocoPhillips, BP market pipeline plans.

BY VANESSA ORR

I

Alaska’s proposed plan for conducting the first-ever open season for Alaska North Slope natural gas, and at the time of this article, was expected to approve a second open season for Denali - The Alaska Gas Pipeline beginning in July.

During open season, companies involved in the Alaska Pipeline

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www.akbizmag.com • Alaska Business Monthly • June 2010

t’s open season in Alaska, and while that term might normally conjure up images of trophy fish or big game, the fact is, there are even bigger prizes to be had at the end of this first-time ever event. In March, the Federal Energy Regulatory Commission (FERC) approved TransCanada

Project (a joint effort of TransCanada and ExxonMobil) and Denali - The Alaska Gas Pipeline (a joint effort of ConocoPhillips and BP PLC) will solicit bids from shippers to offer firm commitments to ship natural gas through their proposed pipelines. According to the AGIA (Alaska Gasline

Map courtesy of Denali – The Alaska Gas Pipeline

www.akbizmag.com • Alaska Business Monthly • June 2010

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Larry Persily Federal Coordinator Alaska National Gas Transportation Projects

Inducement Act) website, the process, which runs a minimum of 90 days per open season, is designed to promote competition in the exploration, development and production of natural gas, and provide the opportunity to ship additional natural gas supplies through subsequent open seasons.

“Open season is when companies go to market and talk to shippers about what they plan to build, how long it will take, what the cost is and more,” explained Larry Persily, federal coordinator for Alaska Natural Gas Transportation Projects.

“This is when they find out if there is anyone willing to commit to shipping gas on their pipeline. Is there enough demand? Are they building their pipeline to the right size? Signed shipping agreements will gauge market demand.”

While the Alaska Pipeline Project was able to begin seeking shipping commitments on April 30, Denali was expected to hold its own open season in July. Both projects expect to be on line by 2020, delivering approximately 4.5 billion cubic feet of gas per day to North American markets.

THE PROPOSALS In November 2007, TransCanada Alaska and Foothills Pipe Lines Ltd. jointly submitted an application under AGIA to build a 4.5 billion cubic-feet-

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per-day 48-inch-diameter natural gas pipeline. The Alaska Pipeline Project offers two alternative routes; the first, an approximately 1,700-mile line from a new natural gas treatment plant at Prudhoe Bay on the North Slope to Alberta, Canada; the alternative pipeline route, the Valdez option, would extend approximately 800 miles from the Point Thomson field through

“We’re not for one project or the other; we’re not taking bets.

What we want is for someone to build a pipeline from Alaska to North America, and we’ll work with anyone who files an application to build it. In the end, there will only be one pipeline – it’s marginal enough for one; there definitely won’t be two.”

– Larry Persily Federal Coordinator Alaska Natural Gas Transportation Projects points near Prudhoe Bay, Fairbanks and Delta Junction, and then to an interconnection point with LNG facilities (to be built by third parties) near Valdez. Both lines will feature a minimum of five off-take points to provide Alaska gas for in-state use.

The Alaska Pipeline Project proposal includes the design, permitting and construction of a new gas treatment plant (GTP) as a component of the project that will be located near existing Prudhoe Bay facilities. A natural-gastransmission pipeline connecting the Point Thomson field to the GTP is also a proposed component of both options.

Depending on the route, The Alaska Pipeline Project is expected to cost between $20 billion and $41 billion.

The State of Alaska awarded the AGIA license to TransCanada in August 2008, and in June 2009, the company announced they had reached an agreement with ExxonMobil to work together on the project. TransCanada Alaska Co. LLC and subsidiaries of Foothills Pipe Lines Ltd. remain the AGIA licensees.

“We believe that the TransCanada ExxonMobil Alaska Pipeline Project has some distinct advantages, including the fact that the capacity and expertise of both companies to build the gastreatment plant and the pipeline are unsurpassed,” explained James Millar, manager, corporate communications and media relations, TransCanada.

“Unlike Denali, we are proposing an LNG alternative, as well as an option to Alberta. TransCanada also holds the certificate for the project through Canada – no one else has that.

And finally, we are aligned with the State of Alaska. This is an important point because no commercial party can deliver this project on its own.

“For several years now, TransCanada has sought to align all of the major parties because we think that this is the best way to make the project go forward,” he added. “We’ve openly offered an equity stake in our project to parties who commit their gas in the initial open season and we continue to do that.”

According to Millar, the economics of the project, combined with forecasted future natural gas prices, suggest that both of their project options are commercially and technically viable, subject to appropriate commitments by shippers.

“In North America, we produce and consume 75 billion cubic feet of gas a day,” he said. “Every year, we lose 20 percent of our capacity, so we have

www.akbizmag.com • Alaska Business Monthly • June 2010

39

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to drill a lot of wells just to maintain flat production. Every five years you need to replace your entire gas supply, so we think that there will be more than enough room for Alaska gas in the 2020 time frame.”

ConocoPhillips and BP’s Alaska Gas Pipeline would be one of the largest private sector construction projects ever built in North America. It consists of a gas-treatment plant on the North Slope and a large-diameter pipeline that travels more than 1,700 miles through Alaska, Yukon Territory, British Columbia and Alberta, Canada. If it is required to transport gas from Alberta, the project will include a large-diameter pipeline from that location to the Lower 48.

“What we’ve proposed is a largediameter, high-pressure gas pipeline that will be buried for almost its entire length, and chilled to below freezing in areas of permafrost or discontinuous permafrost to keep the soil frozen,” explained Dave MacDowell, Denali spokesman. “We chose to bury it because it will be less expensive to construct and maintain, as well as safer and more secure.

“We filed our open season plan on April 7 with FERC, and assuming that they approve, we will commence our open season in July,” he added. “This is a very important milestone for this project; we’re looking for multi-year, multi-billion financial commitments from shippers to help underpin the pipeline’s financing and construction.”

www.akbizmag.com • Alaska Business Monthly • June 2010

According to MacDowell, Denali has already spent $140 million since it was formed in 2008 on engineering, field work, technical assessments, and pipeline and gas-treatment plant engineering and design to develop a high-quality cost estimate for shippers.

“Everything we’ve done to this point has been focused on this open season,” he explained. “I feel we’ve developed an attractive commercial offering and hope that it attracts customer support.”

The project is estimated to cost $35 billion when completed. While there are many challenges facing a company building a gas pipeline through Alaska’s rugged terrain, there are less physical issues facing them as well.

“We are concerned that any bids we get will be heavily conditioned to address risks outside of Denali’s control,” MacDowell said. “For example, there is uncertainty over Point Thomson lease ownership. This high-pressure gas condensate field east of Prudhoe Bay holds 25 percent of the 35 trillion cubic feet of known natural gas resources on the North Slope; but because it is in litigation, the ownership is unclear, which will likely create conditioned bids.”

BP holds a 26 percent share of Prudhoe Bay gas, a 24 trillion cubic foot resource, and a 32 percent share of Point Thomson gas, an 8 trillion cubic foot resource. These are typically considered the fields that will be supplying gas to the export project.

“There is also a need for clear and predictable long-range tax and royalty terms in the State of Alaska,” MacDowell added. “This may also result in conditioned bids.”

NEXT STEPS While no one can yet say what the open seasons will bring, shippers are keeping an open mind when it comes to what proposal is best. “As an upstream gasresource holder and potential shipper, our company will deal with the individual projects and proposals separately and fairly,” explained Steve Rinehart, press officer, BP Exploration (Alaska) Inc. “Shippers, including us, and all of the companies proposing projects are engaged at this point. Our basic approach is that we are looking for a way to get North Slope gas to market.

Steve Rinehart Press Officer BP Exploration (Alaska) Inc.

This is a key part of our strategy. How it gets to market has not been determined yet. We will look closely at any viable project that will get our gas to market.

“We assume that both entities will go forward with open seasons, and we’ll evaluate our opportunities in both of those projects. There are a lot of details that we need to look at to determine if we will make shipping commitments.

If further opportunities arise, we will look closely at those as well.”

According to Persily, whose agency serves as a clearinghouse for information related to the gas line, his agency will also be monitoring the open seasons.

“Our job is to assist and coordinate efforts to get all of the required permits in line for a natural gas pipeline to take North Slope gas to the Lower 48,” he explained. “While no one has yet applied for environmental or wetland or stream-crossing permits, there is a lot of advance work to do. We’re working with all of the agencies involved to make sure that they are staffed up and are all working from the same maps and data sets in preparation for the filing of project applications.

“We’re not for one project or the other; we’re not taking bets,” Persily said. “What we want is for someone to build a pipeline from Alaska to North America, and we’ll work with anyone who files an application to build it. In the end, there will only be one pipeline – it’s marginal enough for one; there definitely won’t be two.” ❑

www.akbizmag.com • Alaska Business Monthly • June 2010

41

OIL & GAS

Photo courtesy of Pioneer Natural Resources

Foreground - Pioneer President and Chief Operating Officer, Tim Dove. Background – Oooguruk Drill Site.

Slow season wrap-up.

BY HEIDI BOHI

A

look at what five companies are doing in Alaska. Many in the Alaska oil and gas industry are scaling back investment due to the State’s production tax business model.

CONOCOPHILLIPS ALASKA “Frankly, there’s not that much going on,” says Natalie Lowman, director of communications for ConocoPhillips Alaska, looking back on the

42

past several months and projecting ahead to the upcoming season. While the company is continuing to produce oil, the reduction in investments is tied to high production taxes that don’t incenctivize the industry.

ConocoPhillips did not drill any exploratory wells in the 2009-2010 winter drilling season. Instead, she says, they are focused on preparing for exploration in the Chukchi Sea in 2012. In 2008

and 2009, they collected biological and oceanographic baseline data over specific ConocoPhillips prospects in the Chukchi Sea, studied ice and sea state conditions, and collected air quality data to use in support of permits that will be submitted this year.

The core producing fields, including Prudhoe Bay and Kuparuk, are on significant decline. Increasing recovery in assets like these could generate

www.akbizmag.com • Alaska Business Monthly • June 2010

significant new jobs and investment in the state. But, she says, after more than two years of history with the Alaska’s Clear and Equitable Share (ACES) production tax, ConocoPhillips is focusing on two major areas that may encourage more investment that will generate jobs in Alaska. An improvement to the progressive feature of ACES will create an incentive for investors to pursue projects that may not otherwise be attractive in the current volatile business climate. More focus is also needed on exploration, development and production projects in all the fields on the North Slope, including Prudhoe Bay and Kuparuk.

“Increasing even 1 percent recovery in each of these fields would result in significant new volumes going down TAPS,” Lowman says.

In early February, the U.S. Corps of Engineers denied a key permit that would have allowed development of Alpine satellite CD5 to go forward.

Extremely disappointed with the decision, the company has diligently tried to permit this project for almost five years.

ConocoPhillips appealed the denial on April 2. The CD5 project represents more than $600 million in investments, and 400 direct new jobs per year during construction, plus hundreds more support jobs. Until this issue is resolved with the Corps of Engineers, this project cannot move forward.

Last year at this time, oil prices had fallen dramatically and the industry was under significant pressure, which ConocoPhillips responded to by focusing on cost management and close scrutiny of investments. “Looking ahead, we will continue to carefully consider each investment decision and will focus on operating well, controlling costs and assessing the overall business climate in this uncertain price environment,” Lowman says.

“As we look to continue improving oil recovery, we recognize that the Kuparuk field, approaching 30 years of age, is a mature asset. This situation requires increased spending on maintenance, and increased maintenance costs may impact the timing and funding of drilling and well work,” she says. “Our exploration drilling activity will be significantly down compared to recent years, but we will continue to

44

concentrate on finding ways to accelerate production from our base fields.”

Because a Record of Decision on the Alpine West CD5 404 permit has not been issued, the company will not be able to meet the project’s planned construction schedule and will have to postpone the CD5 project for at least a year. This permit delay will postpone the earliest estimate for oil production from this satellite from 2012 to at least 2013.

“Unnecessary delays in permitting result in delays in investments, delays in creation of North Slope construction jobs, and delays in commencement of production and associated revenues,” she says.

In the Chukchi Sea, ConocoPhillips will continue with environmental studies in hopes of drilling in 2012, more than four years after it spent more $500 million – and the industry invested $2.6 billion – to acquire federal oil and gas leases in this frontier area. It will not be drilling any exploration wells this season, either onshore or offshore, but instead is focusing more on core assets.

“Our history shows that satellites and infill drilling can add significant production, but the fiscal policy of the State and market conditions need to support those investments,” she says.

MARATHON OIL Natural gas supply in Southcentral Alaska and Marathon Oil’s ongoing efforts to ensure reliability of the resource are two of its main priorities.

“While our focus today is on Southcentral Alaska, it is clear that we are all part of a global energy market that is inextricably linked together regardless of geography,” says Carri Lockhart, manager of Alaska operations for Marathon Oil. “For many years, Alaskans have enjoyed unusually low natural gas prices and the market was thought to be isolated and disconnected from the effects of broader energy market influences. But as supply and demand have tightened in this area, global influences are felt,” she says.

In terms of annual supply, Marathon’s first priority is the overall peak deliverability rate, which is falling – as is the overall production – resulting from the narrowing separation between

sales and production. The wells drilled over recent years have not offset the current decline in Cook Inlet, and the system will be challenged in meeting peak demand during the coldest winter periods under current circumstances.

When comparing the gap between deliverability and future supply, Lockhart says the picture is not all gloom and doom. The majority of current producing gas fields are byproducts of oil exploration and the Cook Inlet Basin is largely underexplored. Rigs are not drilling and the lack of investment activity is prompted by many challenges, including regulations, market dysfunction, access and capital limitations.

“With these challenges, how do we ensure energy reliability? I believe it requires new investment, not only in new production projects, but also storage mechanisms and infrastructure for transmission,” Lockhart says. “Overall, the focus must be on creating the means to attract new investment into this highly regulated, small-market area – but attracting new investment is not easy.”

Exploration and development projects are based on the ability to manage or mitigate risk, including subsurface risk, drilling and completion risk, capital efficiency, market risk, environment risk, regulatory risk and fiscal risk, Lockhart explains, adding that Marathon believes that in Cook Inlet, the regulatory process for LNG exports and sales are subject to procedures that are inconsistent and bias, eliminating any potential reward for risk taking and placing the public at risk for supply reliability because they reduce the incentive to further develop gas beyond contractual obligations.

Marathon has operated in Alaska for more than 54 years and operates nine fields, producing 40 percent of the natural gas production in Cook Inlet and fulfilling 35 percent to 40 percent of the utility needs, including for the Department of Defense. Over the past six years, Marathon has invested more than $450 million in Cook Inlet, drilling 76 percent of the gas production wells drilled in Cook Inlet over the past three years.

Looking ahead, she says, the market is going to need more coordination between all participants, including

www.akbizmag.com • Alaska Business Monthly • June 2010

BUSINESS

PROFILE

Northern Reclamation Services LLC The Ground Preparation Specialists

Doug Glenn of Northern Reclamation Service with a Glenn Air plane used for aerial applications, such CU TGUGGFKPI QT āUJ UVQEMKPI

N

orthern Reclamation Services LLC provides erosion control services that are vital to Alaska’s mining industry. The company helps operations such as the Usibelli Coal Mine and Fairbanks Gold Mining restore the terrain once the extraction process is completed.

Based in Palmer, Northern Reclamation Services specializes in erosion control through excavation and ground surface area dozing, as well as stream restoration. It also focuses on ground management with hydroseeding, mowing and Surface Water Intake Protection Program planning.

In a nutshell, the company prepares the ground for revegetation after mining projects have been closed.

“We get everything ready for reseeding,” says President Doug Glenn.

Northern Reclamation Services recently made a significant investment that will enhance its services for mining customers. The company purchased equipment to make its own Straw Wattle™, instead of importing it from outside the state. Wattles—long tubes of straw that help the ground

retain sediment and moisture—are essential to erosion control and the revegetation process. Having the ability to produce wattles locally provides a major benefit for Northern Reclamation Services. “It is going to lower the price on the wattles because we won’t have to ship them,” Glenn says. “It will allow us to use an Alaska-grown product. We’re pretty excited about it.”

The new wattle equipment, which was manufactured in Germany, weighs 80,000 pounds and costs a quarter of a million dollars. The modular machine will be set up in Palmer’s industrial park, where it will help Northern Reclamation streamline its processes. “This will be huge for our business,” Glenn says.

Northern Reclamation Services, which has been in business since 2007, is owned by Glenn Air Inc. Established in 1988, Glenn Air is a leading provider of premier application services of seed, fertilizer, timber seeding, pesticide/herbicide and live fish stocking.

The company has distinguished itself as an innovator of aerial application services, with more than 8,000 hours PAID

ADVERTISEMENT

of safely-flown trips in Alaska. Glenn says: “Our ability to aerial reseed is a huge deal. We get the work done at a pretty high rate of speed. We’ve got all our own equipment; we’re not really reliant upon anybody else.”

Glenn Air had been providing reclamation services for years through various contractors. Creating a separate reclamation company was a logical step. Glenn explains: “We needed some ground preparation work done, and one of our mining customers suggested that we come in and do all of it. We were doing the aerial application end of it, and it was a door that opened for us to get involved with reclamation services.

It was a natural fit.”

Branching off into the reclamation side of the business has been challenging for Northern Reclamation Services. However, Glenn says, the key to the company’s success thus far has been perseverance. Today, it has approximately seven employees and serves mining clients throughout the state. Northern Reclamation has had the privilege of helping its customers win awards for its expertise. Last year, for example, the Usibelli Coal Mine was recognized for some of its reclamation work.

At this juncture, Northern Reclamation is satisfied with its current position. Glenn says, “We’re staying plenty busy. I’ve got no complaints.”

For more information, contact: Northern Reclamation Services LLC Doug Glenn, President P.O. Box 1924 Palmer, AK 99645 Tel: (907) 746-2585 E-mail: info@glennairalaska.com Web site: www.glennairalaska.com

transitioning deliverability obligations away from producers.

“Stabilizing and maintaining supply and reliability will not be possible without vision, commitment, cooperation, collaboration, process efficiencies and appropriate action by all,” Lockhart says. “Together, we must establish the proper regulatory framework and incentives to attract new investment for exploration, development and production of natural gas.”

SHELL In keeping with recent trends reported by most companies in the industry, last year was not a big program for Shell because it was not able to drill, and as it prepares to head into its open water season this October, the company will continue its baseline science program so that it can collect as much data as possible in preparation for future development activities. It is also continuing its ongoing acoustic recording programs on the North Slope in the Chukchi and Beaufort seas so it can track movements and behaviors or marine mammals and understand how they react to sound and climate change.

Depending on the sea ice coverage this year, in July Shell is planning on drilling two wells in the Beaufort Sea and three in the Chukchi Sea, says Curtis Smith of external affairs. The Interior Department has submitted a revised environmental assessment for its Chukchi Sea leases, which had to be redone after environmental groups filed a lawsuit. The company is optimistic that it will get the additional permits it needs and expects a quick decision after the end of the comment period, and then will be able to prepare for drilling this summer.

Shell paid more than $2 billion for the Chukchi leases in a 2008 federal outer continental shelf lease sale and has spent $40 million in anticipation of getting the go ahead to drill.

PIONEER NATURAL RESOURCES Since arriving on the scene in 2002, Pioneer continues to focus on developing medium-sized prospects, and welcomed the first oil production from Oooguruk in 2008, making it the first independent to operate a producing field on the North Slope and earning

46

industry kudos for bringing it online in less than five years. In 2009-2010 it completed 10 wells, which is a combination of production and injection wells and development drilling will continue throughout 2010. Production is expected to peak during 2011 at 15,000 to 20,000 gross barrels of oil per day from about 40 development wells, according to Tadd Owens, director of government and public affairs. In Cook Inlet, Pioneer continues to pursue the development of the Cosmopolitan field, which was discovered more than 30 years ago. Pioneer is the operator of the field and drilled a horizontal appraisal well during 2007 from a drilling pad onshore to further assess the reservoir. The company has started permitting activities and an engineering study to determine what facilities will be required to begin drilling this year.

Although there is no projection on the timeline, Owens says it is expected to produce 30 million to 50 million barrels.

BP BP Alaska is focused on developing the huge Alaska resource base in place, which includes harvesting the remaining light oil it has been producing for more than 30 years, a portion of the estimated 20 billion barrels of heavy oil, and a share of the 24 trillion cubic feet of gas at Point Thomson, says Steve Rinehart, BP Alaska spokesperson.

Heavy oil becomes more difficult to produce with increased viscosity. BP produces about 50,000 barrels a day from the less-viscous part of that spectrum, mainly from the western side of Prudhoe. Its heavy oil pilot project is focused on the huge Ugnu deposit, which overlays Prudhoe. There is an estimated 20 billion barrels in place of this very heavy oil, which is as thick as cold honey.

“We are very conservative in our estimates of how much might be produced, because so far none is being produced. So, perhaps 10 percent, which would be 2 billion barrels over time,” Rinehart says. “Alaska’s high cost and high tax environment makes it hard to invest as much here as we would like. This is a point we have been trying to make with State policymakers.

Production from the big mature fields is in steady decline. The way to slow

decline is to add investment. This is the key to a long-term healthy oil and gas industry in Alaska.”

The company will continue deploying technology, such as advanced 3D seismic, to identify target resources and use enhanced oil recovery techniques to get more oil from known locations such as Bright Water, which is being used in several Prudhoe and Milne locations. This involves injecting a special heat- and pressure-activated polymer mixed with water. As the polymer molecules reach their target they expand – like popcorn popping – filling the tiny spaces or pores in the rock. It is like building a dam thousands of feet below the surface, which diverts the waterflood into the zones that are flooded for oil recovery.

Developing new technologies, such as low-salinity waterflood, which the company recently tested successfully at Endicott and may increase oil recovery by 10 percent to 20 percent in some reservoirs. Another example, Rinehart says, is coil-tube drilling (CTD), a technique developed in Alaska.

“We recently set a new world record depth for CTD, more than 22,000 feet (this is the length of the well bore, not the vertical depth below ground),” he said.

It will continue its approach this year by deploying technology (such as advanced 3D seismic) to identify target resources.

Looking ahead, Rinehart says BP has installed a heavy-oil pilot facility at the Milne Point S-pad, and drilled four wells as part of a project to find ways to produce heavy oil. The first of those wells is scheduled to come on line no later than early June and will use cold-heavy-oil-production-system (CHOPS) technology to supplement conventional oil production from existing North Slope fields, which are being depleted. It is also building and mobilizing the Liberty drilling rig, and plans to begin drilling the first well later this year, which will be one of the longest wells in the world. If the drilling works as expected and the wells are successful it will open up other opportunities for developing near-shore oil deposits where conventional development with gravel islands would be too costly or ❑ create regulatory problems.

www.akbizmag.com • Alaska Business Monthly • June 2010

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47

TOWNS

IN

TRANSITION

BY HEIDI BOHI

Barrow Top of the world.

Aerial view of Barrow in September 2008.

I

town, both on the streets and over the air.

For 2,000 years, whalers have participated in hunts twice each year in pursuit of the bowhead whale that migrate near Barrow in the spring and fall.

48

www.akbizmag.com • Alaska Business Monthly • June 2010

t is late April in Barrow and the spring whaling season has begun in the farthest north city in North America. Crews are heading out to atsea ice openings and it is the talk of the

Without these harvests, locals – most who are Inupiat Eskimo – cannot survive in one of the harshest climates in the world. But today, in the world’s largest Inupiat Eskimo settlement,

“When we’re done with this process, it will give us some good ideas of what can be developed in the community that will be self-sustaining.”

– Bob Harcharek Mayor City of Barrow

Photo by Jessica K Robertson, U.S. Geological Survey

and State and federal agencies provide local jobs. As the borough and the local population of 4,500 continues to grow, along with more visitors being attracted to the area year-round, the city finds itself faced with short-term and long-term needs that range from needing to provide more recreational opportunities for youth and adults, to creating more jobs, and solving the escalating housing shortage. At the same time, the cost of living is double that of Anchorage: milk is $9 a gallon and bread is $6 a loaf.

As the city began searching for grant funding, it quickly realized that most sources require having a comprehensive economic development strategy (CEDS) in place, says Barrow Mayor Bob Harcharek. Working with the U.S. Department of Commerce Economic Development Administration (EDA), federally recognized tribe, the Native Village of Barrow, which is the lead on the project, brought several local groups together to begin the process including . the city and borough, Ukpeagvik Iñupiat Corp. (UIC), Arctic Slope Native Association, Inupiat Community of the Arctic Slope and Ilisagvik College.

“When we’re done with this process, it will give us some good ideas of what can be developed in the community that will be self-sustaining,” Harcharek says of the efforts to find ways to create an economic base for Barrow.

GUIDING GROWTH traditional culture and modern life are blended. It is not uncommon for locals to be away from the office for weeks at a time while they work on one of about 35 crews hoping to land a whale.

CREATING AN ECONOMIC BASE Barrow is the economic hub of the North Slope Borough, the city’s primary employer, many businesses provide support services to the oil patch,

To guide the economic growth of the region, the CEDS will be a continuing economic development planning process that includes background and history of the economic development situation of the area, analysis of economic and community development

www.akbizmag.com • Alaska Business Monthly • June 2010

49

problems and opportunities, community participation in the efforts, goals and objectives for taking advantage of the opportunities and solving economic development problems, and a plan of action that includes specific projects that will implement the objectives established in the strategy, along with performance measures of evaluating progress.

Although the process is still in its infancy, the community hopes to have the EDA certification process completed by this fall, says Cynthia Toop, a project specialist for the Native Village of Barrow. “We are trying to consider everyone’s needs including both groups and individuals,” she says.

Informally, several ideas are being considered for possible inclusion in the plan. The Coast Guard is considering putting a seasonal operating base near Barrow to deal with cruise ships and tankers that sail Arctic waters. Given the continued global warming it is anticipated that the small base would be expanded later to help speed responses to oil spills from tankers that would eventually carry shipments from Scandinavia to Asia through the Bering Strait. When this happens, Toop says, locals want to be able to take advantage of the influx of people by starting businesses that can service base personnel.

A proposed deep-water port, another long-term goal, Toop says, would mean that cruise ships would be able to dock in Barrow, creating a need for tourism businesses that offer products and services to passengers spending the day in the community. The thinking is that these same businesses also would help to attract visitors to the community during winter months.

WISH LIST Another wish-list project, which has been considered before, is to develop a white-fish processing plant, capitalizing the health benefits from it being high in Omega 3 fatty acids. Japanese entrepreneurs looked at this possibility several years ago, but because of government regulations it is considered a subsistence food and can’t be capitalized on.

As the population continues to grow, Harcharek says a top priority of the city is to offer locals and youth more recreational opportunities in an

50

attempt to keep violence and crime at bay. The city has secured about $1 million in grant funding for the design for expanding and renovating the multiuse Piuraagvik Recreation Center. The 27-year-old facility was built when the population was 2,200 people and since then it has more than doubled.

At the same time, he says, the project is estimated to cost between $10 million and $12 million and currently the city has no idea where it will get the rest of the money. To make it more manageable, the building is being designed so that it can be completed in three phases.

One solution for raising the money to complete the center is for the city to open a liquor store in Barrow, Harcharek says. Barrow is a damp community, which means that liquor cannot be sold there. Instead, it is ordered through outlets in Fairbanks and Anchorage and made available through a city-owned distribution center, which contributes about $3,000 a month to Barrow’s coffers. A liquor store could gross about $4 million a year – profits that are currently being lost to businesses outside of the community – which is enough to fund the new center, along with recreational activities and various social programs. Currently, the city relies on other “sin taxes” placed on alcohol, cigarettes and smokeless tobacco, most of which is used on recreational programs.

Alcohol continues to be a divisive issue in the community. Over the years, the community has gone from being wet to dry to damp and there are still many in Barrow who would like to see it going back to being dry.

Although a city-owned liquor store would have strict purchase limitations for beer, wine and hard alcohol, many believe alcohol is the leading cause behind social ills such as murder, abuse and suicide. The mayor is hoping to have the initiative on the ballot for the upcoming October election.

HOUSING SHORTAGE The city recently received $2 million in funding from the National Petroleum Reserve Alaska (NPR-A) to help build a permanent dock and a boat ramp that would allow for ocean access from the lagoon on the north side of town. The project will go out to bid this month and Harcharek says he is hoping the project

“We are trying to consider everyone’s needs including both groups and individuals.”

– Cynthia Toop Project Specialist Native Village of Barrow is under construction by mid-winter so it can be completed by next summer.

As is the case with most villages, the housing shortage is a top concern in Barrow. The local housing authority is looking for land to build an apartment complex and 12 housing units, which will likely be for low-income tenants.

The village corporation is also building an apartment complex to house teachers, with the hopes that it will free up other units in the community.

Although single-family homes continue to be built, Harcharek says it has slowed down substantially because it is difficult to get loans. Eight houses are expected to be completed this summer and the borough and various organizations are working cooperatively to address the issue.

TOURISM Although tourism has slowed down in the past two years – a direct reflection of the state, national and global economy – the industry continues to show great potential for increased development.

Local Alaska Natives recently started offering boat tours of the area. NANA Corp. continues to run Tundra Tours and The Top of the World Hotel, and locals recently purchased a tour company from UIC. Although most visitors are attracted to the area for bird watching, Alaska Native culture and to participate in the whaling festivals, locals are also considering taking visitors to see their subsistence fish camps. The new recreation center could potentially double the size of the market because it could be used to host mini conventions.

Although more hotels and bed and breakfasts would be needed, Harcharek says, once the facility is complete entrepreneurs would be encouraged ❑ to invest in the market.

www.akbizmag.com • Alaska Business Monthly • June 2010

RIGHT MOVES .

UKPEAGVIK IÑUPIAT CORP.

Tim Schuerch was h i r e d a s i n - h o u. s e counsel for Ukpeagvik Iñupiat Corp., the Alaska Native village corporation for Barrow. His previous work includes posts as president and chief executive of Kikiktagr uk Iñupiat Cor p. of Kotzebue; Schuerch policy analyst for the Alaska Native Health Board; and general counsel for the Alaska Native Tribal Health Consortium.

GEONORTH LLC

Mark Pearson, a principal at GeoNorth LLC, was inducting into the Alaska Surveying and Mapping Hall of Fame. He received the honor in February at the Alaska . Surveying and Mapping Conference annual awards conference in Anchorage. He cofounded GeoNorth in 1994. He now works in the company’s Portland, Ore., office. Pearson has led many Alaska geographic information system projects, including a large study of a proposed gas pipeline from Prudhoe Bay to Chicago in 2000. He has helped implement major GIS projects for the state Department of Transportation and Public Facilities, BP Exploration (Alaska) Inc. and the Alaska Railroad Corp.

CHUGACH ALASKA CORP.

Wade Olsen was hired as central treasury officer for Chugach Alaska Corp. Olsen previously worked as vice president/treasurer and investor relations for AMI Semiconductor in Pocatello, Idaho. He has 15 years of experience in international finance and business development.

PREMIER ALASKA TOURS INC.

Josh Howes was promoted to president of Premier Alaska Tours Inc. Howes has worked for the company since 2000. He led the motorcoach division and managed safety operations.

NAC CAN make air cargo easier!

COMPILED BY NANCY POUNDS KEYBANK

Ryan Edwards joined KeyBank in Alaska’s as a private banker. He handles financial services for high net-worth clients and develops new business partnerships statewide. Edwards previously served as banking relationship manager with Wells Fargo in Boise, Idaho. Wesley Shutt was promoted to mortgage associate for KeyBank in Alaska. He is based in Juneau at the Mendenhall branch. He joined the bank in 2007 as a branch manager.

Shutt has more than seven years of mortgage and management experience. Charles Collins was hired as branch manger for KeyBank’s Behrends branch in downtown Juneau. Collins’ experience includes owning and operating Copy Express, Copy Works, Sign Pro and Yukon Office Supply in Juneau.

Lynn Klassert was promoted to vice president of KeyBank in Alaska. Klassert serves as a senior business banking relationship manager. Klassert has worked for KeyBank since 2004 when he began as a commercial banking underwriter.

Management honored Bernie Karl as business leader of the year. The annual award honors business excellence, leadership, educational support and community service. His current ventures include Chena Hot Springs Resort and K&K Recycling. Karl has been recognized for his work using geothermal technology to make his resort more environmentally friendly. Geothermal energy powers three greenhouses at Chena Hot Springs, which grow fresh produce year-round for the resort’s restaurant.

EHS-ALASKA INC.

Scott Harper earned certification as a lead risk assessor and lead inspector from the U.S. Environmental Protection Agency. The certification allows him to conduct sampling based on the EPA’s new Lead-Based Paint Renovation, Repair and Painting Program Rule Harper is a design engineer and project manager with EHS-Alaska Inc. He joined EHS-Alaska in 2009.

MARK

Edwards

Shutt

Collins

UNIVERSITY OF ALASKA FAIRBANKS

Dirk Tordoff was awarded the University of Alaska Foundation’s Edith R. Bullock Prize for Excellence.

Tordoff is head of the Alaska Film Archives at the University of Alaska Fairbanks Rasmuson Library.

The Bullock Prize for Excellence, which includes a $20,000 cash award, is the largest single award made annually by the UA Foundation’s Board of Trustees. He was honored for his work collecting historical film footage about Alaska and the Arctic.

Footage from his collection has appeared on TBS, PBS, the History Channel, the Discovery Channel, CBS, ABC and NBC. The University of Alaska Fairbanks School of

U.S. SEN. BEGICH’S OFFICE

Sally Smith was hired as field representative for northern Southeast Alaska for U.S. Sen. Mark Begich. Smith is a former mayor of the City and Borough of Juneau. Smith also has served as a three-term state legislator. In Begich’s Fairbanks office, Janelle Perry was hired as staff assistant.

Perry will work with assistant regional director, Tom Moyer. Perry previously worked as a program director for the North Star Youth Court.

ANCHORAGE CONVENTION & VISITORS BUREAU

Jack Bonney was hired as public relations manager. He most recently worked as an assignment editor at Northwest Cable News in Seattle.

The Anchorage Convention & Visitors Bureau elected its 2010 officers for the board of directors.

They are: Randy Becker, captain of the Seward Fishing Club, chairman; Maggie Kelly, director of Alaska operations, Royal Celebrity Tours, vice chairman; Scott Habberstad, manager of regional sales-Alaska for Alaska Airlines,

To serve you even better, Northern Air Cargo announces NAC Can – a new program designed to improve customer service and make shipping with NAC easier than ever before.

• Faster drop-offs and streamlined pickups.

• Individual kiosks for small packages, oversize, and general freight.

• Dedicated service agents for custom shipping solutions.

Who can make air cargo easier for Alaska? NAC Can!

800.727.2141 907.243.3331 www.nac.aero 52

www.akbizmag.com • Alaska Business Monthly • June 2010

RIGHT MOVES treasurer; and John Woodbury, owner and publisher of COAST Magazine/Alaska Adventure Media, secretary; ACVB President and CEO Julie Saupe serves as a nonvoting member.

SPONSORED BY NORTHERN AIR CARGO

FIRST NATIONAL BANK ALASKA

NORTHRIM BANK

Susan Ashley was promoted to assistant compliance officer at Northrim Bank. Ashley has 33 years of banking ex p e r i e n c e. S h e i s a Nor thr im char ter employee and joined the bank in 1990 when it started.

Ashley

PRINCE WILLIAM SOUND REGIONAL CITIZENS’ ADVISORY COUNCIL

Mark Swanson was hired as executive director of the Prince William Sound Regional Citizens’ Advisory Council. He will be based in Valdez.

Swanson previously worked as an emergency response manager for Shell Oil in Texas. He also worked as commander of the Coast Guard’s Valdez Marine Safety Office from 2002 until he retired from the agency in 2005 after a 21-year career.

STATE GOVERNMENT

Wanetta Ayers was hired as director of the state Office of Economic Development. The office is part of the state Department of Commerce, Community and Economic Development. Ayers most recently served as executive director of the Western Alaska Community Development Association.

Schiedler

Jennifer Schiedler was appointed assistant cashier at the First National Bank Alaska branch in Bethel.

Schiedler also serves as branch operations supervisor. She has more than nine years of experience in the banking industry, including more than a year with First National.

ALASKA RAILROAD CORP.

O’Leary

The Alaska Railroad Corp. board of directors appointed the railroad’s chief financial officer Bill O’Leary as acting chief executive officer.

O’Leary replaces Pat Gamble, who was hired as University of Alaska president.

DENALI ALASKAN FEDERAL CREDIT UNION

ALASKA AIRLINES

Alaska Airlines reorganized its marketing, sales and online commerce groups. Joe Sprague was appointed vice president of marketing.

He will also continue to lead the Alaska Air Cargo division. He has worked 10 years for Alaska Airlines. Steve Jarvis Sprague was appointed to the new role of vice president of customer innovation and alaskaair.com. He previously served as vice president of marketing. Jarvis joined Alaska Airlines in 1999 as staff vice president of e-commerce.

ALEUT REAL ESTATE LLC

Tony Cange was chosen president of Aleut Real Estate LLC, a subsidiary of The Aleut Corp. He most recently served as financial manager and senior business analyst for Koniag Development Corp.

Flynn

Waak

Heather Flynn and Werner Waak were appointed to the Denali Alaskan Federal Credit Union board of directors. Flynn has 40 years of professional and political experience in nonprofit development, management and fundraising. She retired from the University of Alaska Anchorage where she was director of the Adult Learning Center. Waak works as a senior administrative officer for the Municipality of Anchorage’s purchasing department. Waak has volunteered on the credit union’s supervisory committee. ❑

Did someone in your company receive a promotion or award? Please submit information, for possible inclusion in Right Moves, to editor@akbizmag.com. Information received is published, space available, two months after receiving the press release. Right Moves is compiled by Nancy Pounds of Anchorage and sponsored by Northern Air Cargo.

www.akbizmag.com • Alaska Business Monthly • June 2010

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GENERAL

Employment Agency Staffing High tech and people savvy, agencies save time and money.

BY DEBORAH JEANNE SERGEANT

■

2.01 million people are employed by staffing companies every business day.

■ 8.6 million temporary and contract employees are hired by U.S. staffing firms over the course of a year.

■ 79 percent of staffing employees work full-time, virtually the same as the rest of the work force.

■ 90 percent of client businesses say staffing companies give them flexibility to keep fully staffed during busy times.

■ 90 percent of staffing companies provide free training to their temporary and contract employees.

■ 65 percent of staffing employees say they developed new or improved work skills through their assignments.

■ 40 percent of staffing employees say they choose temporary or contract work as a way to obtain employment experience or job training.

Source: American Staffing Association

T

he economy’s gradual recovery may bring unexpected changes to your work force. As a result, your company’s staffing needs can shift.

If you need to hire temps or fill longterm positions, consider turning to an employment agency for help. Employment agencies’ industry relationships, variety of services and smart innovations may be a cost-effective solution compared with the “do-it-yourself” approach.

Especially if your company needs specially trained, highly skilled employees, it’s a terrific time to snap up top talent for brief assignments or for the long haul. With other companies downsizing and folding, “there is an abundance of applicants looking for work,” said Cindy Schelber, owner of Personnel Plus, an employment agency in Anchorage.

“If a company needs a temporary accounts payable clerk to catch them up on their payables, their temporary might easily be someone overqualified for that role who is willing to take the step back because it’s only temporary,” said Susan Ahrens, regional manager Adams and Associates, an employment agency in Anchorage. “The time to train this overqualified person would be minimal and they would most likely require less time to complete the job because of their experience and level of expertise.”

Photo courtesy of Personnel Plus

RECRUITMENT TOOL

Cindy Schebler owns Personnel Plus in Anchorage.

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Other qualified candidates who are still working keep their eyes open for opportunities to jump ship, without officially quitting until they have something solid lined up elsewhere.

To connect with these top people may be more difficult than you’d think because they aren’t seeking employment with the same motivation as someone without a job.

That’s where an employment agency can help you scout out new talent. They can help you find key people, even if these talented applicants’ job search is somewhat lukewarm.

“We can present candidates who might not actively be looking for work,” said Mike Houston, vice president of sales and marketing for OTPI Staffing Group in Anchorage, “but are interested in other opportunities.

Photo courtesy of OPTI Staffing Group

Staffing Facts

Mike Houston is vice president of sales and marketing for OPTI Staffing Group in Anchorage.

That enables us to tap into an unseen candidate pool. A lot of times that helps us find people who can add to the bottom line right away.”

If your company needs to drastically slash payroll overhead, employment agencies also can help you save by allowing you to rehire laid-off staff on a project basis, a trend observed by Theresa Wasson, district manager for Kelly Services in Anchorage.

“Overall, it saves them money,” she said.

www.akbizmag.com • Alaska Business Monthly • June 2010

CONSULTANT CONVERSION An employment agency can facilitate your company’s transition from a mostly employee-based work force to a more consultant-based work force without so much of a learning curve since your former staffers (now your consultants) already know your business well. You may also be surprised at the number of your current staff who would welcome the flexibility afforded them by working as consultants. They may even receive better benefits from the employment agency than what you can offer.

Employment agencies also can help you fill in the gaps as the economy changes during the upcoming economic recovery. Houston describes this idea as a “flexible work force” allowing companies to “staff up” or “staff down” as needed.

“Since people are trying to get the most for their money without raising operating costs, the temp side of our business is able to provide that,” he added.

And, as always, employment agencies can help your company stay nimble during natural fluctuations in consumer demand for your business. Whatever your busy period – April for a tax preparer, November through December for a retailer, or June for a wedding coordinator – an employment agency can

2007 Alaska Facts ■

■

■

■

■

Alaska staffing companies employed 5,027 people for temporary or contract work in 2007. The average tenure was approximately 13.5 weeks.

In Alaska, 1,734 temporary and contract employees bridged to permanent jobs in 2007.

In 2007, Alaska staffing firms employed an average of 1,309 temporary and contract employees per day.

Alaska staffing firms generated more than $48 million in annual payroll in 2007.

Staffing firms operated some 159 offices throughout the state.

Source: American Staffing Association, U.S. Bureau of Labor Statistics www.akbizmag.com • Alaska Business Monthly • June 2010

55

Employment Agency Myths Experts dispel misconceptions.

Photo courtesy of Adams and Associates

The experts interviewed shared their views on a few misconceptions about the employment agency industry.

Carol Mutter manages the Anchorage branch of Adams and Associates.

provide temps to help get you through without the added burden of recruiting.

Considering the current sizable applicant pool, it can take a while to find the right applicant.

“In the current economic climate, if a company places an ad for an open position, the response can be staggering and can easily overwhelm the downsized (human) resources of many companies,” said Carol Mutter, Anchorage branch manager for Adams and Associates. “We help to alleviate the burden by taking the filtering and prescreening piece, so all they have to do is interview and hire.”

MANY SERVICES OFFERED Some employment agencies also perform the interviews and hiring because they keep the candidates as their own employees. They administer payroll, benefits, workers’ compensation and employee discipline.

These days, employment agencies do so much more than find a temp to fill the receptionist’s chair while she’s out on maternity leave. Kelly Services, for example, can fill openings on all levels in a variety of industries. The company even provides substitute school teachers.

OPTI’s recruiters each focus on a specific field, such as industrial or sales staffing. Employment agencies often specialize in areas such as medical, financial or hospitality. Just ask.

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✔

Employment agencies don’t supply quality candidates.

“We identify people who will meet the company’s goals, objectives and add to the bottom line,” Mike Houston said. “We aren’t just a ‘body shop.’ We want to make sure you have the best team in place as possible. We place only 10 percent of the people we meet altogether.”

“We go through hundreds of resumes (a client) may receive for one permanent position,” Cindy Schebler said.

✔

It’s not worth training a temporary employee for a short-term project.

“Some [temporary employees] are brand new to the marketplace, but many are higher level or more experienced workers who are temping for a variety of reasons. According to the American Staffing Association, 64 percent of staffing employees report that their work gives them the scheduling flexibility and the time for family that they desire,” Susan Ahrens said.

✔

Temporary employees don’t get benefits, so they’re a substandard labor pool.

“Adams & Associates offers our candidates benefits within their first week of employment with us, which allows us to attract a top-notch pool fo qualified candidates to represent us,” Ahrens said.

✔

The fees are too high.

“I think we really are pretty up-front and provide a very hands-on experience for our employers,” Schebler said.

“Our hourly rates include all costs for recruiting, screening, payroll, payroll taxes (including contributions for Social Security, unemployment and workers’ compensation), and all tax filing and recordkeeping. We absorb this cost in the form of a mark-up to our client. If the client weren’t using a staffing service, they would be required to absorb these costs themselves anyway, and wouldn’t have the added benefit of flexibility that comes with using a temporary employee,” Ahrens said.

“Employers say that it’s a big fee but don’t realize the value of the process,” Anne Bulmer said. “Most don’t have the time to dedicate to the process.”

Like every other industry, technology has helped employment agencies offer more services. Through Kelly Services, employees can train on their Web site, which can attract more tech-savvy applicants to their firm. Kelly also can take over a company’s call center requirements and computerized work stations through their teleconnect service.

Screening applicants is easier than ever. Last June, OPTI added E-verify, which ensures applicants have been authorized to work in the U.S. and have been verified as such. The process involves funneling applicants’ information through the Department of Homeland Security and the Social Security Administration.

“We’re one of the few companies that validate people’s authorization to

work in the U.S.,” Houston said. “Our clients have been pleasantly surprised that we do it.”

Personnel Plus recently upgraded its Web site to offer employers an opportunity to list their job order online, send timecards for processing and communicate with its staff more efficiently.

In response to the economic downturn, Adams and Associates has restructured its pricing options to be “more flexible this year than last year,” Mutter said. “Additionally, we’ve expanded our presence in the medical field and in the energy industry, both with oil and gas and wind energy. We have tremendous strength in these arenas, and we are leveraging those strengths this year to create more opportunities for ❑ our candidate pool.”

www.akbizmag.com • Alaska Business Monthly • June 2010

Alaska Executive Search

Photo ©2010 Chris Arend

I

Patience pays off for clients.

f you’re not promoting from within to fill executive-level employees, using an employment agency can help you find top-notch people.

“A lot of companies use us because we can reach out and talk to a wide variety of people, some of whom are employed still and some might not be looking but they have the skill set and we can talk to them in a very confidential way,” said Anne Bulmer, co-owner of Alaska Executive Search (AES) in Anchorage.

Her husband, Bob, founded their business in 1977, capitalizing upon the shortage of qualified executives in Alaska. Since then, the Bulmers expanded the company’s scope to include divisions specializing in recruiting support staff, information technology employees and medical personnel.

Because the role of an executive-level employee influences an organization so much more significantly than many other positions and is one with greater longevity, screening represents a large part of the hiring process. It’s more than matching skills, experience and education to the opening. It also includes matching a candidate to the company culture, too. The process begins with a meeting. “(The employers) sit down with us in their office,” Anne said, “and go over the history of the company, the challenges of this new position, the skill sets they’re looking for, the personality the employer is looking for and they give us as much info about the company and the situation so we know what they’re looking for.”

Communication goes both ways in order to result in a successful, long-term placement.

“We’re still in business because we deliver to the client what they’re looking for,” Bob Bulmer said. “We have a reputation for doing that. Our candidates stay in the job because they know what they’re getting so there are no surprises.”

Depending upon the position, many different kinds of checks can be part of the process beyond references and education. These can include criminal record checks and online social media searches, new on the docket at AES. Since an executive-level employee can be a big factor in the public’s perception of the company, the individual’s online reputation matters, too.

To help make an executive placement successful, employers should “understand what it is that they really need as far as skill sets, temperament, technical abilities and what they’re hoping for that person to be able to do and achieve as far as the company’s continued growth and profitability,” Anne said.

Above all, employers need to be patient. The higher the level of responsibility, the longer it will take to find the right candidate. But once the right match is made, the time involved with the thorough Bob and Anne Bulmer, owners of AES. hiring process will repay itself again and again. www.akbizmag.com • Alaska Business Monthly • June 2010

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FINANCIAL

Business Banking Trends change with economy.

BY PEG STOMIEROWSKI

58

Outstanding loans at First National, at about $1.195 billion, were off about $10 million from a year earlier, he said earlier this year. Demand for business loans was off a modest eight-tenths of a percent, and small-business loans were down a couple of percentage points at most.

when a venture can be financed through multiple small-end loans of $5,000 to $10,000 that won’t take money out of anyone’s college fund.

“It’s all in how you ask,” Dinneen said, and a good business plan is as

STARTUP FUNDING Of today’s startup traffic, lenders at these and other financial institutions tend to see the better prepared – people who are seeking amounts of $50,000 or larger, said Jason Dinneen, statewide director of Alaska’s Small Business Development Center (SBDC) in Anchorage.

While people are continuing to come in and open businesses, many smaller startups are turning for help to friends and family members who won’t require collateral. Fear of negative credit impacts is a driver in this trend, he said.

And while common wisdom often warns against mixing family and business, doing so can be a viable source of startup support, he said, especially

Photo courtesy of Jason Dinneen

B

usiness owners in Alaska, to hear a couple of lending managers tell it, need not be shy about making a well presented case for a business loan despite uncertain times.

At Wells Fargo Bank, overall credit policies haven’t changed much and credit remains available for Alaska businesses, attest statewide managers of the national commercial bank. Wells Fargo originated $816 million in new business loans over the last two years in Alaska, they said. The company aims to increase business lending this year by up to 25 percent and to originate $16 billion in small-business loans.

At First National Bank Alaska in Anchorage, Senior Vice President and Chief Financial Officer Jason Roth, said the bank is not seeing the demand for commercial and small-business loans that it did a year ago.

“While year-end deposits rose by $190 million, loan demand has declined, making it a more competitive business-lending environment,” Roth said. “However, let there be no mistake – at First National, we continue to make good loans to Alaskans.”

Jason Dinneen, statewide director of Alaska’s Small Business Development Center in Anchorage.

www.akbizmag.com • Alaska Business Monthly • June 2010

important as the appropriate tone and language. The SBDC counsels that popular new techniques of pitching an idea through 10 PowerPoint slides can help a business owner fill in the details and end up with a business plan capable of winning notice. Orientation classes for startups, he said, are drawing crowds.

FEWER LOANS, MORE MONEY The trend in federal Small Business Administration (SBA) loans in fiscal

year 2010, as of the end of the second quarter on March 31, was to fewer loans but substantially higher overall dollar volume, said Sam Dickey, SBA deputy district director in Anchorage. Volume declined in the first two quarters of 2010 over 2009 from 73 loans to 63 loans, while the aggregate loan amount rose from $10.3 million to $27.1 million. The agency was still seeing loans across the board, from small to large, and the number of new business loans, as compared with

expansions, was consistently holding around 35 percent, Dickey said.

At First National, Roth attributed the decline in demand for business loans more to uncertainty about the Alaska economy than to any general tightening of lending standards, especially in regard to petroleum outlooks, he said.

Businesses aren’t seeing as much activity as they might normally anticipate.

“In this current economic environment,” said Wells Fargo Vice President Bond Stewart and Alaska spokesman

Business Plan Basics Key elements crucial to success.

BY PEG STOMIEROWSKI A well formulated business plan will help you communicate your business ideas to advisors and financers. Go through the process of developing a business plan and you’ll be better prepared for helping your company succeed. A wellcrafted business plan – one you can take to the bank – should, at a minimum, include the following elements.

☛ Executive Summary

☛ Personal Financial Statement

☛ Mission Statement

☛ Budget

Highlight the main points, including the type of business, history, products, services, and company goals.

Present a succinct, straightforward statement of your business purpose and intention. You can attach a values or a vision statement if you wish, addressing what you intend the business to express or be known for.

Include a list of all your assets and liabilities and calculate your net worth.

Identify and list the benefits the products and services your business will sell.

Include labor expenses of wages, payroll taxes and benefits, including Social Security, Medicare, state and federal unemployment taxes, workers’ compensation insurance, health insurance and retirement plans; nonlabor expenses, including rent, utilities, supplies, equipment maintenance and business insurance; startup expenses, including license and legal fees, remodeling, advertising and promotions; and projected cash flow.

☛ Operations

☛ Capital Equipment

☛ Products & Services

Describe how you will run day-to-day operations and list the inventory, raw materials and supplies the business uses.

☛ Business Information

List the cost of each piece of equipment needed to start your business, related monthly depreciation and estimated life of the equipment.

Address the legal structure of the business (i.e., sole proprietorship, partnership or corporation). Include information about business licenses, zoning requirements, insurance requirements, building codes, health codes and other relevant laws and regulations. Be sure to seek tax and legal advice from professionals.

☛ Timetable

☛ Location

List other sources of financing, including the cash invested by yourself, your partners, family and friends.

State the location of your business and tell what makes this a desirable location.

☛ Competitive Analysis

Identify major competitors and compare your products and services in terms of quality, price, selection and customer service.

Address why consumers would choose your business over that of the competition.

☛ Marketing Plan

Identify your customers and how you will promote and sell your products and services. Include information about your pricing strategy.

Identify activities key to starting your business. Schedule a start and finish date for each action.

☛ Financing Sources

☛ Projected Cash Flow

Use a cash-flow projection to support the availability of future cash flow to repay the loans. Include principal and interest payments in the forecasts.

☛ Supporting Exhibits

These should include items such as historical financial statements, tax returns, resumes, an organizational chart, location map, job descriptions, legal documents, credit reports, patents, letters of reference, market survey report and photos of business.

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David Kennedy, “it is more important than ever for us to work with business owners to help them access the capital they need to manage and maintain their businesses.”

Still, in fields like tourism, that have been hit hard by the recession, businesses may expect additional scrutiny to the “five C’s” of credit: personal character, conditions detailing how the financing will be used, capital strength (net worth), collateral assets and capacity to repay (cash flow). Banks want to know the strength of the given business, that any collateral is truly sufficient to cover the loan amount, that the loan is sensible given market conditions, and that the borrower is trustworthy, with a good repayment record. The SBDC has many resources that can help, Dinneen said.

Photo courtesy of Wells Fargo

UNCERTAIN ECONOMY

Wells Fargo Vice President Bond Stewart

In Alaska, oil and gas industry prospects, especially around gas pipeline activity, remain a huge driver of the economy, Roth said. For businesses, he added, uncertainty generally means you don’t act.

These uncertainties in Alaska include speculation about what State lawmakers will do to match revenues to State spending as receipts from the

oil industry decline. A key time frame this summer surrounds open season, he said, when decisions will be made regarding making commitments to the proposed gas lines, along with any decision the Legislature may make around the issue of taxing oil differently from natural gas.

The website www.alaskaseconomy. org, underwritten by First National, has drawn recognition for trying to help customers understand the Alaska economy and the importance of petroleum and new money to the state’s economic vitality. It points out that one-third of all Alaska jobs are directly related to petroleum.

One challenge for any business in uncertain times, Roth said, is managing its leverage, or how risky it can afford to be – in other words, for a business owner, considering whether you can afford to carry as much debt in uncertain times as you might in better or more certain times. Visibility as to the direction of the economy and fiscal certainty of the taxes a business will face is critical to this decision-making, he said. Loans of a speculative nature can expect to face stricter underwriting, he said. But no two entrepreneurs are the same.

Even entrepreneurs have different risk tolerances, Dinneen added, and knowing something about a lender’s risk aversions can be important in achieving a good fit.

MANAGING RELATIONSHIPS Another challenge for business owners is managing relationships with financial institutions. In that regard, Roth said, contact and visibility are important – the more transparency the better. You should figure “the better they understand me and my business, the more they may be willing to listen.”

While you don’t need to inundate your financial institution with information, lenders will appreciate knowing when there has been a material change in your business, whether good or bad. In an uncertain economy, Roth said, it helps if bank employees know from direct conversations with you that you understand what’s going on and can manage the risk.

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www.akbizmag.com • Alaska Business Monthly • June 2010

At community banks, lenders generally expect they’re going to have a relationship with a borrower in the local community as long as the loan endures and beyond, Roth said.

On the other hand, since the economic downturn, more businesses understandably are checking out ratings reflecting the stability of banking institutions as well. First National’s Web site includes its annual reports and safety/ security links.

For global concerns, larger banks may be more likely to have global business services through their own branches, while smaller community banks may have affiliations with larger banks that do (as First National has with the Bank of Nova Scotia, Citi Bank and Union Bank).

ONLINE SERVICES As for online banking services, a variety of safety and flexibility features have been designed to lure more customers.

Small businesses, based on their needs, can choose from a range of options to pay bills, employees, taxes and more.

Mobile banking allows users to browse their accounts from their I-phones, transfer money and pay bills while they are on the go.

For some, the option to view business or commercial accounts in various configurations, whether together or separately, to track account balances and receive customized alerts, is appealing. A manager can be alerted, for instance, when a transaction has been conducted by someone other than himself, Stewart said.

With more bills being paid online and fewer cash, check or paper transactions each year, the online-to-paper balance at First National currently is about 50-50, according to Roth. The dividing line tends to be generational, and Roth said he could imagine a period where there will be a two-tiered system along generational lines.

While he defends the safety of online banking, Roth cautions customers to be vigilant about the potential for identity theft, using strong passwords, changing them frequently, and being careful about keeping identification information confidential.

“Early adapters” of the technology, he noted, tend to be more confident ❑ about its safety.

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Corporate Partners ABR, Inc. Accent Alaska.com-Ken Graham Agency Alaska Airlines & Horizon Air Alaska Business Monthly Alaska Communications Systems (ACS) Alaska Journal of Commerce/Alaska Oil & Gas Reporter Alaska Railroad Corporation Alaska Rubber & Supply, Inc. Alaska Steel Company Alaska Wildland Adventures Alyeska Pipeline Service Company American Marine Corporation Arctic Slope Regional Corporation Arctic Wire Rope and Supply AT&T Alascom Bristol Bay Native Corporation Calista Corporation Chevron North American Exploration & Production CIRI Clark James Mishler Photography CONAM Construction Company Construction Machinery Industrial, LLC Denali National Park Wilderness Centers, Ltd. Emerald Alaska, Inc.

Exxon Mobil Corporation Fairweather Exploration & Production Services, Inc. Foss Maritime Company Holland America Lines Westours, Inc. Information Insights Kim Heacox Photography LGL Alaska Research Associates, Inc. Lynden, Inc. McKinnon & Associates, LLC Mondragon Photography Northern Air Maintenance Services, Inc. Oasis Environmental, Inc. ODS Alaska Olgoonik Corporation NANA Regional Corporation Pacific Star Energy, LLC Peak Oilfield Service Company Petroleum News Rainbow King Lodge, Inc. Shell Exploration and Production Company Sourdough Express, Inc. Stoel Rives, LLP Udelhoven Oilfield System Services, Inc. Wells Fargo Bank Alaska, N.A. XTO Energy, Inc.

The Nature Conservancy in Alaska

715 L Street . Anchorage, AK 99501 . alaska@tnc.org . 907-276-3133 . nature.org/alaska

www.akbizmag.com • Alaska Business Monthly • June 2010

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CONSTRUCTION

Photo courtesy of the Port of Anchorage

Marine engineering and construction is ongoing at the Port of Anchorage.

Alaska Ports and Harbors Marine engineering, construction projects advance.

BY PEG STOMIEROWSKI

L

eading ports and harbors in Alaska are flexing some new infrastructure muscle to help the state, amid economic uncertainties, be poised and ready for bigger things.

PORT OF ANCHORAGE At the Port of Anchorage, work has been progressing on the facility’s north end. A landlord port and multitasking entity in the model of its own director, former Gov. William Sheffield, the port

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plans to bolster the number of landings by ships, tugs and barges as it prepares more ground for lease.

For his part, Sheffield readily acknowledges the challenges of being a working dock under expansion construction. The port is adding 135 acres and constructing new docks.

While safely maintaining old docks is expensive, he explained, the expansion requires creation of land areas to the north and south for ships to

use during dock-replacement work.

Sheffield turned for leadership direction with the project to the U.S. Department of Transportation Maritime Administration. The agency, in turn, contracted with Integrated Concepts and Research Corp. of Alexandria, Va., with offices in Anchorage, to provide program-management services.

The expansion, port and project managers said, is pumping $75 million to $100 million a year into the

www.akbizmag.com • Alaska Business Monthly • June 2010

economy. It provided more than 400 jobs in 2009 and work for at least 72 contractors, design firms and industry support companies. Numbers this year were expected to be similar or greater, and, depending on funding, the work could continue for several years or more.

Among its many uses, the port serves five military bases (Elmendorf, Eielson, and forts Richardson, Wainwright and Greeley), with Elmendorf housing the headquarters for the Army Corps of Engineers Alaska District. The additional land development is to serve industrial commercial use and to support rapid military deployment from Alaska’s bases.

New docks will be equipped for cold ironing, Sheffield said, so ships can shut off their engines and plug in to shore power. The improvements will also mean lower fuel emissions and efficiencies and better discharging facilities for storm drainage, he said.

Paul French, project manager for West Construction, a subcontractor in the latest phase of the port expansion, explained that the port’s docks are designed primarily for heavy cargo loads.

Changes in modern dock design, he said, reflect in part the preponderance of larger equipment and heavier, more efficient containers. In general, as larger cranes and other heavy equipment move farther out, the facilities under the cranes have to be built up and the larger vessels have to draft more water.

Firms involved in recent design, engineering and inspection work at the port, according to Lyn Dokoozian, port intermodal expansion program manager, have included PND, Coffman (corrosion engineering), Shaw Group, GBB, and Dowl HKM. Besides West’s subcontracting work on terminal redevelopment, Manson Construction has a $33.2 million contract with the Corps, partially funded by the American Recovery and Reinvestment Act (ARRA), to dredge silt and boulders in front of new dock facilities.

Underground utilities work was being planned for May, and later in 2010, Dokoozian said, a solicitation would invite the involvement of other subcontractors on site doing more bulkhead work, driving crane piles and installing bed anodes for an active and cathodic

dock-protection system that could endure from 50 to 100 years.

The project is crane intensive – up to seven cranes may be in use at any one time, she said.

While cranes on the port’s docks previously were able to reach out a distance of only about nine-containers wide, Sheffield said new ships coming into the Port of Anchorage will be a minimum of 13 containers wide. While the old cranes were 38 feet wide at the base, the new ones will be 100 feet wide at base, he said – twice as high and three times as wide.

While the Port of Anchorage is an integral part of Alaskan life, serving 85 percent of the commercial goods for 90 percent of the state’s population, Sheffield reflected that the port’s vital role often is not fully recognized. To some extent, because residents are not easily exposed to port operations, he said, “here in Anchorage, we’re out in left field – out of sight, out of mind.”

PORT MACKENZIE Meanwhile, members of the Matanuska-Susitna Borough’s Economic Development Department, under director Dave Hanson, have been advocating for State support of a rail extension at Port MacKenzie to bolster the value of port improvements, including expansion of the deep-water and barge docks. They also emphasize the potential for a broad array of statewide benefits, including the creation of thousands of jobs.

In a March 19 article in the Mat-Su Valley newspaper Frontiersman, many economic uncertainties facing the state and country amid economic slowdown – energy costs, the future of the transAlaska oil pipeline and construction of a natural gas pipeline, and the future of oil and gas exploration were listed as reasons to move forward on such infrastructure improvements. The extension was expected to shorten the trip trains carrying bulk natural resource loads now make to Seward, by exporting from Port MacKenzie instead.

Already $27.5 million is going toward environmental impact statement (EIS) completion for the rail extension and construction of a road network that could be expanded into a rail loop, Hanson said, and State lawmakers included

$57.5 million in the capital budget for constructing the first 10 miles of the rail extension. The plans for port improvements envision greater efficiencies in unloading bulk materials for export.

The final EIS comment period on the alternative rail routes was completed May 10. Other port improvements to be completed by fall include paving the final 1.5 miles of port road, doubling the barge dock to 16 acres, and completion of the road loop through port uplands.

As noted in these pages (February) by the Borough’s Patty Sullivan, the project fortuitously was advancing simultaneously with building the nearby $240 million Goose Creek Correctional Center by Neeser Construction, and a new ferry with ice-breaking capacities, the M/V Susitna, which was preparing for christening. The prison project was expected to yield 650 construction jobs and 375 correctional positions.

As the rail extension continued to pick up recognition and support, Hanson said that given the port’s spacious capacity for growth and expansion, several companies have talked to developers about tank farms for importing fuel.

In his eyes, he said, Alaska’s two leading trends in port use improvements are improving the ability of the Port of Anchorage to handle big containers, and improving facilities for handling of bulk natural resources for import and export at Port MacKenzie.

Because of the huge potential for mineral and natural resource development, he said, reducing transportation costs is a key concern.

Port MacKenzie’s deep-draft dock can handle the largest ships in the world, he said, and the port has nearly 9,000 upland acres set aside for industrial use – two keys for storage and transport of such resources as molybdenum, copper, lead, zinc and coal.

Not being so close to a residential area has its advantages, he said, and rail access has the capacity to open up the Interior to more mining and other development.

Hanson said in April that Port Mackenzie and the Port of Anchorage were meeting and working together on identifying a ferry dock site in Anchorage.

More improvements are under way at several other Alaska ports and harbors.

www.akbizmag.com • Alaska Business Monthly • June 2010

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Photo by Joy Baker/Courtesy of Port of Nome

AKUTAN HARBOR This spring, the Corps awarded a $31.9 million contract for construction of a new boat harbor in the Aleutian chain at Akutan Island, home to Trident’s Akutan shore plant, the largest seafood production facility in North America. The Akutan facility sustains a year-round frozen seafood operation capable of processing more than 3 million pounds of multiple species per day, and can house 825 Trident employees.

Akutan is about 35 miles from Unalaska, 766 air miles southwest of Anchorage.

“The Akutan harbor fills a gap in a string of harbors from Kodiak to Unalaska that accommodate the fishing industry,” said Steve Boardman, chief of the Corps’ civil projectmanagement branch.

The work will begin this summer and is expected to be done by September 2012. Knik Construction of Anchorage was contracted to build two rock breakwaters, totaling about 1,500 feet in length, and to dredge 960,000 cubic yards of material to create an entrance channel and protected mooring basin large enough for 58 boats ranging up to 155 feet in size.

“An unusual aspect of the Akutan harbor is that it will be dug back into the shore instead of building the breakwaters out from the shore,” Boardman said. “This is because the water drops off steeply from the shore into very deep waters. Building breakwaters that deep would be very expensive.”

The harbor will be dug in a round shape to maximize water circulation.

Dredged material will be placed on land to create a space for the local government to develop a parking and staging area.

The federal government’s share is $28.6 million from ARRA. The Aleutians East Borough, the local sponsor, provided $3.27 million and will establish a 40-acre easement to mitigate impacts for wetlands and fishing streams.

Corps officials acknowledged their efforts to use economic recovery funds to address infrastructure needs while creating jobs. In a February press release, Brig. Gen. Mark W. Yenter, commanding general and division engineer for the Corps’ Pacific Ocean Division said, “To date, the U.S. Army Corps of Engineers

The Port of Nome.

Pacific Ocean Division has obligated $66 million, or 93 percent of the $71 million allocated for civil works projects in Alaska. Nearly $59 million of this amount has been contracted out for critically needed navigation projects, to include constructing a harbor at Akutan and work at Seward Harbor, Anchorage Harbor and Cordova Harbor.”

CORDOVA HARBOR AND PORT The Corps awarded a $2 million ARRA contract to Western Marine of Seattle in July 2009 to dredge 16,000 cubic yards of material from the Cordova harbor. Two-thirds of the material was contaminated with petroleum products and was hauled to the city’s land fill, a spokesman said. The clean material was disposed in water outside the harbor behind Spike Island. Work began in September and was complete by early December.

Cordova’s small boat harbor has a capacity of 727 boats, making it one of Alaska’s largest single-basin harbors; slips range from 24 feet to 70 feet.

KODIAK PORT AND HARBORS Corps projects in Kodiak this year include gathering tidal information and planning a dredging project to remove

rocks and sediment from Saint Paul Harbor, which is the downtown marina, and Saint Herman Harbor on Near Island. Kodiak is the third-largest commercial fishing port in the U.S., with a combined harbor moorage space for more than 1,000 vessels.

PORT OF NOME In Nome, one of the state’s oldest towns, gold mining remains a major industry, along with carpentry and road construction and repair. At the Port of Nome, on the southern side of the Seward Peninsula in Norton Sound, the last major improvements were completed in 2008, said Harbor Master Joy Baker, but further improvements are envisioned. A Corps project replaced the sheetpile at the east dock, and in another city project, a low-level sheetpile dock was constructed just north of that facility.

The Corps completed the south-dock sheetpile replacement in 2007.

The City of Nome earlier partnered with the Corps in a 2004-2007 project that relocated the Snake River Harbor entrance west from its original location east of the harbor, through the sandspit.

A 3,025-foot breakwater was built east of the existing causeway, and a 270-foot spur on the end of the causeway, bringing it to nearly 3,000 feet to protect the

www.akbizmag.com • Alaska Business Monthly • June 2010

docks and the new harbor entrance.

The south dock, 200 feet long with a draft of 22.5 feet, receives bulk-cargo barges and cruise ships and is equipped with marine headers to receive bulkfuel deliveries. The west gold (north) dock on the causeway, at 190 feet with a 22.5 draft, also handles bulk-cargo and fuel deliveries and serves as the gravel-export dock for most regional construction projects, Baker said. A 60-foot-wide concrete barge ramp was installed in 2005 inside the inner harbor, west of the Snake River entrance, to help bulk cargo carriers load freight to landing crafts and roll equipment on and off barges.

Deepening of the outer harbor’s navigational depth to 22.5 feet, which created a larger turning area for deepdraft vessels, and even the sheetpile replacements have spurred greater port use in the past few years, Baker said.

Further improvements may be expected at the Port of Nome over the next few years, Baker added, including high-mast lighting at the causeway docks, utility hookups in the harbor, public restroom improvements and fender enhancements in the harbor.

All are awaiting clarification of pending funding, she said, but should be completed by 2012.

PORT OF SEWARD West Construction is under contract with the Corps for a 250-foot breakwater extension at the Port of Seward. The Corps awarded a $4.2 million contract in October 2009. The City of Seward paid $419,360, while the federal funds came from ARRA. Construction was to begin this summer and was expected to be done by early December.

Other work possibly envisioned this year, according to Kari Anderson, harbormaster, includes a dredging project involving the cruise ship dock in the fall (using cruise head-tax funding grant monies). Pending funding approval, other projects could include relocation of the U.S. Coast Guard shore-support facilities, $300,000; mooring dolphins and Seward Marine Center dock improvements for the Alaska Region Research Vessel Sikuliaq, $1.5 million; and installation of a new security (Z) float for cruiseship support vessels, $2 million. ❑ www.akbizmag.com • Alaska Business Monthly • June 2010

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MINING

Aerial view of Kensington Gold Mine.

Photo courtesy of Coeur Alaska

Zinc, copper and gold projects.

BY HEIDI BOHI

A

s oil production declines, Alaska is turning to the mining industry to help diversify the state’s economy and provide different employment opportunities in more than 100 rural and urban communities statewide. Although there are challenges, such as inadequate energy and transportation infrastructure and anti-development initiatives, with five new mines in the last two decades, mining continues to demonstrate that it remains a cornerstone industry.

KENSINGTON GOLD MINE After litigation brought on by environmental groups delayed construction of the Kensington Gold Mine, located on the east side of Lynn Canal about 45 miles northwest of Juneau, a positive ruling regarding the project’s tailing facility now means the developer Coeur

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Alaska is back on track for completing the tailings facility in question in time to start production in July. This month the company is wrapping up the tailing facility, which is the final step before running initial ore through the plant to test all operations.

Working with environmental groups and agency officials, Coeur developed an alternative plan for tailings placement using paste technology for the tailings facility, which was approved, says Tony Ebersole, director of corporate communications.

Since construction began in 2005, despite the legal challenges, Coeur continued moving ahead on all areas not in dispute, including building the mill and crusher buildings, underground mine development to complete an almost three-mile tunnel connecting Comet Beach with the Jualin side

of the project, Slate Creek Cove dock and ancillary facilities.

Kensington is currently expected to have a mine life of approximately 10 years, based on proven and probable gold mineral reserves of 1.5 million ounces concentrated gold, 50,000 of which are expected to be harvested during the first year of production, before ramping up to an annualized level of 125,000 ounces. In addition to the 300 construction jobs, there will be 200 operations jobs and 150 additional indirect positions created, generating $18 million in payroll.

Despite the legal controversy, there has been very strong support from Juneau residents and Alaska Native groups.

“The feeling is that people are really, really supportive of this project,” Ebersole says, adding that since the

www.akbizmag.com • Alaska Business Monthly • June 2010

THE PEBBLE PROJECT Coming up with a technically feasible, economically viable and environmentally responsible plan for developing the Pebble gold and copper deposit continues to be under way as Pebble Limited Partnership (PLP) prepares to invest $72.9 million in Alaska this year and advance the prefeasibility study toward completion.

At the same time, an updated Pebble mineral resource estimate, based on new drilling results of 509 holes – including 37 new holes drilled since 2008 – and revised economic parameters, suggests a 17 percent increase from what was originally projected, says Mike Heatwole, director of public affairs.

“We continue to enhance our knowledge of what the potential is for Pebble, but at the end of the day it needs to feed into being a technically feasible, economically viable and environmentally responsible plan.”

The Pebble deposit is the largest known resource for both copper and gold in North America. To date, drilling programs have delineated an 8 billion ton deposit (all grades) containing 73.6 billion pounds of copper, 87.1 million ounces of gold and 4.2 billion pounds of molybdenum. If the project is ultimately permitted, construction of mine facilities is likely to take two years to three years and create 2,000 full-time direct jobs, with operations continuing for 50 years to 80 years.

Pebble will continue exploratory drilling this year as it also prepares an environmental baseline study and preliminary development plan prior to the National Environmental Policy Act multi-year permitting process starting in 2011. It involves 11 federal and State government agencies and 67 individual permit requirements. A final permitting decision is expected by 2012.

Before filing the permits, PLP will present the plan to communities in the region and answer questions about the proposed Bristol Bay development.

Typically, Heatwole says, locals want to know about the style of mining, the

number of jobs it will create, the potential for paying local and State taxes, environmental impacts and the proposed management plan.

One of the most frequently asked questions is how PLP proposes to live up to its public commitment to protect the fishery in the heart of the Bristol Bay watershed, a sensitive topic in a region that is home to the world’s most productive salmon fishery and where commercial and subsistence fishing is both a livelihood and a lifestyle. It also continues to be the basis of the anti-Pebble platform that pits mine naysayers against the development, saying the mine will destroy subsistence resources. If permitting agencies feel the project cannot be developed without damaging the environment, it will not be permitted.

“It’s not a choice of mining or fishing,” Heatwole says. “It’s about developing a plan where the two co-exist.”

Objectives for 2010 center on prefeasibility study activity and the program at the site operation in Iliamna and include an engineering program, an environmental study program to continue baseline data collection, a geology and

Photo courtesy of Pebble Limited Partnership

ruling the entire community has come out to support the project.

Elders attend a forum about the Pebble copper and gold mining project. www.akbizmag.com www akbi mag com • Alaska Business Monthly y • June 2010

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site investigation program to conduct ongoing exploration drilling and support engineering and environmental studies, and a public affairs and stakeholder education program.

The work program, based on investing in Bristol Bay communities, includes funding and support for the Pebble Fund, a resource for helping foster sustainable communities, activities, educational programs and projects in the region. To date, the independent fund has awarded $1.6 million to 51 projects through 35 qualified organizations in Southwest Alaska, which has also helped to leverage almost $10 million in matching funds.

DONLIN CREEK The proposed Donlin Creek Mine, 13 miles north of the Middle Kuskokwim River village of Crooked Creek, is estimated to hold about 36 million ounces of in-place resources and at the peak of its 25-year lifespan mining and milling operations would employ 600 to 800 people. A critical development in a region where communities are among the poorest in Alaska, co-owners

Kuskokwim Corp. and Calista Corp. are working closely with the Donlin Creek management team to advance the project through the National Environmental Policy Act (NEPA) permitting stage when they know if the project is a go.

In the meantime, the lack of existing infrastructure and power at the proposed mine site, and the enormous costs for providing these, continues to be the top issue threatening the feasibility of the development, Mary Statler, community development and sustainability Manager says. Only after addressing these engineering issues, along with the uncertainly of the NEPA process, will the company be able to make a decision on whether to proceed with building a mine at Donlin.

The substantial power needed is comparable to what the City of Fairbanks uses. Currently, project managers are reviewing two possibilities for generating the power that will be needed to bring the property into production. The first is on-site generation using a combination of wind and diesel. The second is to construct a power line from the project to the Railbelt

to tap power from the existing grid.

The drilling program is continuing to explore both near the projected open pit and along the geologic trend in order to better characterize and expand the existing resource. Results of the review and optimization, and the ongoing exploration, will guide the project into finalization of the feasibility study and permitting. The pipeline feasibility study would push the timeline for completing the permitting process out until about the fourth quarter of 2011.

Assuming permits are issued, it is estimated that the three-year construction would start in 2014.

RED DOG MINE Until recently known as the largest zinc mine in the world, though Red Dog has dropped to second place since the development of larger deposits in India, it remains Alaskaâ&#x20AC;&#x2122;s showcase mining development in terms of production and reserves, and the NANA and Teck relationship is regarded as a leading example of how a development partnership should work.

In operation since 1989, 2009 was

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www.akbizmag.com â&#x20AC;˘ Alaska Business Monthly â&#x20AC;˘ June 2010

When we decided to develop Red Dog Mine, we knew we were investing in the future. For three generations, Red Dog has positively affected our lives, our economy, our culture and our environment. Now, by developing the Aqqaluk Deposit at Red Dog, we’re adding 20 years to the mine’s life – that means 20 more years of good-paying jobs, funding for our schools and local government, and support for vital social and cultural programs that protect our Iñupiaq way of life. www.nana.com

NANA

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Photo courtesy of Kelley Hegarty & Associates LLC

Aerial view of Donlin Creek exploration camp.

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www.akbizmag.com â&#x20AC;˘ Alaska Business Monthly â&#x20AC;˘ June 2010

a record year for Teck, says Jim Kulas, manager of environmental and public affairs. He attributes this to the company’s comprehensive BEAR initiative, designed to improve the production improvement process by systematically focusing on day-to-day operations where improvements can be immediately implemented in the work force.

“There was hardly any aspect of the operation that wasn’t scrutinized,” including purchasing, maintenance, and human resources, Kulas says of the ongoing commitment. “It’s not something you do once and say you’re done – we are always looking at the operation through this process,” adding that increased efficiency and record production numbers of zinc and lead concentrate have been the measurement of success.

Based on well-defined ore reserves, the projected life of the mine was 40 years when it was designed in the mid-80s, meaning it would continue to operate until about 2031. Having already reached 50 percent of the main deposit’s capacity, with a lifespan that

has been projected to end between 2010 and 2012, the company’s exploration program has been looking at ways to extend the mine’s life and increase its ore reserve base and production rate.

The adjacent Aqqaluk Deposit promises to have a considerable amount of ore, containing 51.6 million tons of reserves, containing 16.7 percent zinc and 4.4 percent lead, which would mean an estimated 20 years of mining activity for the region and NANA. Without the deposit, Red Dog will shut down operations, ending economic benefits for both the region and the state.

Currently working with State and federal agencies to permit the deposit, the project is now facing uncertainty.

The appeal that has been filed is against the renewal of the National Pollutant Discharge Elimination System (NPDES) permit. Aqqaluk’s development is critical and depends upon successful approval of the proposed closure and reclamation plan for Red Dog. The final Supplemental Environmental Impact Statement (SEIS), addressing environmental protection, subsistence resources and water qual-

ity has been completed, though the appeal process lies ahead.

From 1990 through 2007, total direct and indirect economic impacts of the mine to the region’s and state’s economy were $530 million. In 2007 alone, the mine provided $230 million in federal and States taxes. Operations provided 475 full-time jobs and 80 temporary positions. The mine is the sole taxpayer in the Northwest Arctic Borough and also serves as an important source of revenue for the borough.

In 2007, the borough received about $10.9 million in lieu of taxes as a result of its agreement with Teck. Red Dog also spends more than $100 million purchasing goods and services from local and statewide suppliers.

Although NANA is hoping to resolve the issues in question, Kulas says if it is not resolved by the middle of the year, they could end up interrupting operations until an agreement is reached.

“We are very concerned about it,” he says, and until EPA issues a notice clarifying the provisions of it, the entire new permit is stayed and will not ❑ go into effect. kinross.com

Our People Our Community When Fort Knox Gold Mine was looking for an environmental professional to fill a crucial job at the mine, we didn’t have far to look.

A UAF grad who studied geography and geology, Kindra has long had a passion for the environment.

Kindra already had a few years experience, but found her dream job at Fort Knox where she monitors the mine’s compliance with complex environmental rules. She enjoys being part of the Fort Knox team, and has found the career path she sought without having to leave home.

Hiring qualified Fairbanks residents makes our job at Fort Knox easier, too. Kindra is among the 500 mine employees who call Fairbanks home.

www.akbizmag.com • Alaska Business Monthly • June 2010

71

PEOPLE

Robbie Graham Alaskan returns as social entrepreneur.

Photo by Brian Adams/ Orion Collective

Robbie Graham, CEO, GrahamGroup Strategies.

BY HEIDI BOHI

R

emember when the TV show Good Morning America escorted more than 4 million viewers from their living rooms for a week-long “Great Alaska Adventure” to handpicked destinations in Southcentral and Southeast? Or what about when Martha Stewart, the domestic empire maven, remotely broadcast her cooking show from various locations, along the way whipping up pancakes with 100-year-old sourdough starter and sharing her salmon filleting secrets?

You might remember these shows,

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but unless you’re in the advertising or public relations industry, chances are you have no idea who the mastermind was behind what are still considered two of the biggest contributions to growing the state’s visitor industry.

And it may be safe to say that no other media exposure in Alaska’s history has had a greater impact.

If you ask Robbie Graham, founder and co-owner of the former Bernholz and Graham, one of the top PR firms in the country and responsible for the two broadcast coups, that’s how it should be.

“That’s how B&G always went about doing business,” she says of the firm she left last year, passing the torch to Jennifer Thompson who has since branded it as Thompson & Co. “With all of the self-promotion in the PR world now, it’s not about the client as much as it is the about the agency,” Graham says.

“There is a grace in putting others first and when it comes to clients, it should always be about them. Our thanks is really in the recognition of the work well done and knowing you’re as good as anyone else out there.”

www.akbizmag.com • Alaska Business Monthly • June 2010

ENDURINNG PR

INNOVAATIVE APPROACH As part of her efforts to market Alaska, Graham approached the Late Show with David Letterman. Three days before Karp and Graham arrived in New York, she made arrangements to have delivered to the studio a life-size cutout of a dog team and sled, replete with Daveâ&#x20AC;&#x2122;s notorious mother sitting in the basket. Not only were the folks from Alaska the talk of the Ed Sullivan Theater by the time they arrived, he says, while they were in the meeting with producers, Letterman himself stuck his head in the office to say how much he appreciated the effort. â&#x20AC;&#x153;The thing that resonates with me about working with Robbie is that she is very non-traditional in the way she approaches public relations,â&#x20AC;? Karp says,

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Although the broadcasts aired in 1994 and 2000, respectively, the exposure from these two public relations successes continue to be â&#x20AC;&#x201C; as Martha would say â&#x20AC;&#x201C; a good thing, as year after year, many of the viewers continue to be motivated by the memories of the shows and book their vacations here. The projects, which were for the firmâ&#x20AC;&#x2122;s clients the former Alaska Tourism Marketing Council (ATMC) â&#x20AC;&#x201C; now the Alaska Travel Industry Association â&#x20AC;&#x201C; and Tourism North not only resulted in weeks worth of hits to the website and follow-up stories on the celebrity events, but they also spawned new small businesses started by several of the vendors who worked on making all the technical aspects and logistics of each show come together.

Breaking new ground, thinking big, never missing even the smallest detail â&#x20AC;&#x201C; this has been Grahamâ&#x20AC;&#x2122;s trademark since she and her late business partner Bonnie Bernholz opened the agency in 1989.

While representing (ATMC), Dave Karp, former executive director, worked closely with Grahamâ&#x20AC;&#x2122;s firm on efforts to promote the stateâ&#x20AC;&#x2122;s travel industry to international and domestic markets. Graham has left an indelible mark on the state with her brand of PR including launching the Idita-rider program for the Iditarod Trail Sled Dog Race, now a solid source of funding for the race.

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www.akbizmag.com â&#x20AC;˘ Alaska Business Monthly â&#x20AC;˘ June 2010

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adding that in his position as President of Northern Air Cargo he continues to work with her in various capacities and admires her drive and determination.

She has a certain tenacity, he says, and one that she has rightfully earned. “In Alaska, we have a tendency to consider ourselves minor leaguers, but Robbie is always willing to put Alaska on the same platform – or higher,” he says.

ALASKA SUCCCESS Originally from Trenton, Michigan, she earned her journalism degree from Michigan State University in 1975 with hopes of becoming a foreign correspondent, but instead migrated to Washington, D.C., where she wrote for Nation’s Business Magazine and freelanced for The Washington Post. She met the late Gov. Jay Hammond while he was in town to address the National Press Club about the Alaska Permanent Fund. When she interviewed him over lunch, his enthusiasm for Alaska convinced her to apply for a job at the Anchorage Daily News, where she worked after relocating to the state in 1980.

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While freelance writing in the mid’80s, she met the late Bonnie Bernholz who hired her to work at the former PR firm, Evans Kraft Bean. The two worked side by side for three years, ultimately becoming best friends, neighbors and business partners when they launched Bernholz & Graham in 1989. It was a natural fit, Graham says: the two women had the same business vision and ethics, and their individual talents complimented each other. “We agreed on just about everything,” Graham says, looking back on the successful collaboration.

Within the first year, the firm was profitable. There was no business plan besides having fun and quietly doing some good public relations.

Their first client was the landlord, then GCI came onboard, followed by ATMC, which was their first anchor account and helped lead to securing new clients like Spenard Builders and Tourism North.

When Bernholz died of breast cancer in 2000, the loss was crushing and Graham still has a hard time talking about it today. Looking back on their

Bill Zervantian 907.229.0700 www.billzphotography.com

first years in business together, she is reminded of a story that embodies Bernholz’ love for people: she once hired a receptionist because she liked the woman’s name – even though she didn’t speak English very well, was not good at answering the phone, and had a terrible time pronouncing Bernholz.

NEW ENDEAVORS In 2001, Graham sold the firm to ad agency owner Mike Porcaro, remaining onboard as the CEO. In 2006, while still running B&G, she decided to return to school for a master’s degree in international relations and public diplomacy from The Fletcher School of Law and Diplomacy at Tufts University.

It was challenging to move between the two worlds, but the time spent at Fletcher, she says, was an awakening.

“We live in our bubble doing what it takes to get by, and often forgetting what goes on in the world,” Graham says. The exposure to global thinking and classmates from all over the world solidified her desire to become part of shaping the debate that state and national leaders will face in the years ahead.

“I want to be a part of the discussion about what our state and our universities, should look like in the future.

It’s my plan to be a voice for Alaska on critical issues such as Arctic warming, energy development, international trade and public diplomacy.”

To put those goals into motion, today she is CEO of GrahamGroup Strategies, which specializes in grassroots networking, public policy issues and in developing high-level communication strategies for her clients. As Associate Director for Strategic Initiatives at the Edward R. Murrow Center for the Study and Advancement of Public Diplomacy, she spends time there working on communication strategies and development projects.

She describes this new direction of becoming a “social entrepreneur” as the third phase of her professional career. “I’m taking my leadership skills and applying them to new tasks. And, like my baby boomer colleagues, I’m returning to the passions I set aside a long time ago, though now I have the benefit of 25 years of experience that I ❑ can apply,” Graham says.

www.akbizmag.com • Alaska Business Monthly • June 2010

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TRANSPORTATION SPECIAL SECTION

Bill Sheffield Transportation industry icon.

Photos courtesy of Port of Anchorage

BY TRACY BARBOUR

Former Gov. Bill Sheffield, director, Port of Anchorage.

I

“Transportation, in Alaska, is everything,” Sheffield says.

Alaska’s transportation system comprises a network of roads, airports, ferries, rails and ports. The Alaska highway system covers a relatively small area of the state, connecting only the main population centers. However, major airports in Anchorage, Juneau, Fairbanks and Ketchikan and minor airports elsewhere offer extensive air transportation throughout the state. Even remote villages have airports, or at least makeshift runways. Alaska also has a welldeveloped ferry system, the Alaska Marine Highway, which primarily serves the Southeast and Alaska Peninsula.

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www.akbizmag.com • Alaska Business Monthly • June 2010

n Alaska, perhaps no one symbolizes the transportation industry more than former Gov. Bill Sheffield. Eighty-one-year-old Sheffield – who has spent nearly six decades serving Alaska – is currently the director of the Port of Anchorage and vice chairman of the Alaska Railroad Corp. board of directors.

In these roles, he sits at the center of a transportation system that is vital to Alaska – a vast state that spans 600,000 square miles. While most Alaskans are concentrated in the Southcentral region, the rest of the population is scattered throughout some 250 villages across the state.

The Alaska Railroad runs from Seward to Anchorage, Denali and Fairbanks to North Pole, with spurs to Whittier and Palmer. The railroad – which uniquely carries both freight and passengers – is a critical element in moving Alaska’s natural resources and other items to ports in Anchorage, Whittier and Seward.

Disruptions to the state’s transportation system could be potentially devastating.

“We have a seven-to-14-day supply of fuel and groceries in Alaska,” Sheffield says. “If one part of that segment breaks down, it would be a major problem.”

The Port of Anchorage.

TRANSPORTATION LEGEND Sheffield, who came to Alaska in 1953 as a young sales representative for Sears Roebuck and built a successful network of hotels, isn’t daunted by problems. In fact, he has a long, legendary history of addressing the state’s transportation problems. As Alaska’s governor from 1982 to 1986, he successfully negotiated the transfer of the Alaska Railroad from the federal government in May 1984.

Sheffield says he worked hard to bring about legislation to secure the funds – about $23 million – for the railroad’s purchase because he felt it was crucial for the State to own the railroad and run it like a business.

“We won that battle and lost a few friends for a while – but it works,” Sheffield says.

The Alaska Railroad works as a quasi-public entity that is managed by a seven-member, governor-appointed board. Though owned by the State, the railroad generates its own operating income and receives no financial support from State funds. It does, however, draw funds from the federal government. Today, the Alaska Railroad has assets of nearly $1 billion, more than 600 miles of tracks, 1,640 freight cars (owned and leased), 48 passenger cars owned by the railroad and 24 owned by tour companies, and 51 locomotives.

The railroad is an essential component of the state’s transportation system. It’s relied upon to move resources all around the state, including fuel from the Flint Hills Refinery in Fairbanks and coal from the Usibelli Coal Mine in Healy.

“We have all these resources, but if we can’t get them to market, they are

of no value,” Sheffield says. “That’s where transportation comes in, and a lot of that is by rail.”

In addition to moving resources, the railroad provides passenger service 12 months of the year. It offers GoldStar first class rail service, whistle stop service, Christmas trains and service to the Alaska State Fairgrounds in Palmer. During summer, the railroad hauls cruise ship passengers from Whittier and Seward to Anchorage, Denali National Park and Fairbanks.

PORT DIRECTOR In his lead role at the Port of Anchorage, Sheffield oversees a terminal that serves 85 percent of Alaska’s population. The port is the entry point for 90 percent of the consumer goods shipped to the state. It distributes everything from food and clothing to heating oil and other natural resources.

The Anchorage port is a multifaceted and busy operation. Ships arrive constantly, mostly from Tacoma, carrying groceries and other goods. These items are promptly distributed by train or truck to other parts of the state. There are also barges and tugs coming in with fuel from Valdez, and fuel tankers from West Coast petroleum refineries.

The Port of Anchorage handles most of Alaska’s refined petroleum products, including 100 percent of the jet fuel for Elmendorf Air Force Base, and more than 80 percent for the Ted Stevens Anchorage International Airport. The port serves the needs of five military installations in Alaska. It is designated as one of 19 Strategic Ports due to its location in the global market and importance to the military’s mission. (The

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The port is the entry point for 90 percent of the consumer goods shipped to the state.

d designation requires the h port to provide d the military with 25 acres for its operations within 24 hours notice.)

“We’ve had about 30 deployments for Afghanistan and Iraq,” Sheffield says. “One movement was almost 4,000 pieces.”

Anchorage’s port generates more than $1.3 billion in economic benefit annually, with more than 4.2 million tons to 5.1 million tons of cargo crossing its docks. From a general perspective, Sheffield says, ports serve an important function across the entire nation. About

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80 percent off the h freight f h being b trucked k d over the roadways came through a port somewhere. Yet, smaller ports like the one in Anchorage are struggling to keep up with their infrastructure needs and deserve greater consideration from the federal government, according to Sheffield.

“There’s no money in Congress for ports,” he says. “We’re on a push to change that so that small- and mediumsize ports get some help through formula money – like highways, rail and transit – to provide a better infrastructure and do a better job for their community.

The Th word d ‘port’ ‘ ’ is right h in the h middle ddl of the word transportation.”

EXPANSION PROJECT Sheffield has been at the helm of the Port of Anchorage since 2001, when he came out of retirement to serve as the interim director to “fix a couple of things.”

And that’s what he’s been doing ever since. Now, much of his time is spent on the $800 million Port of Anchorage Intermodal Expansion Project.

The expansion project places him in the familiar position of drumming up

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financial support, with about 48 percent of the expansion project’s funds are coming from State and local funding, including State grants and port profits. The remaining 52 percent is being raised through federal appropriations and grants, which is where Sheffield’s persuasive skills come in handy.

“You’ve got to keep asking and convincing people that ports are important,” he says. “Here in Alaska, we need and deserve help, too, like everybody else.”

The port’s expansion is being completed in multiple phases through 2016. As part of the project, the port is building new docks on both ends and new barge berths. When those are completed, the old docks in the middle will be torn out and replaced.

Improvements to the aging facility are much-needed and long overdue.

“The docks are over 50 years old,” Sheffield says. “All the pile has been beaten up by wind and ice.”

The north extension and barge berths are already under way and will be in operation next August.

The next phase will include the south

extension and south replacement, which will begin in 2012.

“We could start it tomorrow, but we just don’t have the cash flow to do that,” Sheffield says. “The south end is where all of our petroleum products will be, along with bulk cement ships.”

Once completed, the project will double the size of the port’s real estate; provide state-of-the-art container cranes, a new rail connection and new road access; and facilitate direct access for the Stryker Brigade as well as other military deployments.

The expansion project will better prepare the port to support the forecasted growth of the population and economy of Alaska. Ultimately, it will stimulate the local economy and provide opportunities for local construction, design, and material supply businesses. In addition, the expanded port will provide efficient transport of goods into and out of Anchorage for the next 50 years and more.

RAILROAD GOALS In terms of enhancing the Alaska Railroad, Sheffield envisions adding

commuter services. People enjoy riding trains, he says. “ We c o u l d r u n a c o m m u t e r train from Wasilla to Anchorage in 55 minutes.”

Another one of his goals is to expand the Alaska Railroad into the Interior.

That’s where all the wealth of Alaska lies, he says. Running the rails into the Interior would provide greater access to natural resources such as lead, zinc, copper, oil, gas and coal.

“We’re a resource state; that’s all we’re ever going to be,” Sheffield says. “Until we get our infrastructure to the point where we can get to those resources and get those resources to market, we haven’t done our job. We know how to do it in an environmentally sound way; we can take care of ourselves. With help from the federal government and ourselves, we’ll get the transportation links in place.”

A great deal has been done in Alaska for transportation, Sheffield says, but there’s still a lot left to be accomplished.

“We’re still a young state,” he says. “We have a lot to do, and we’re trying to do ❑ it as quickly as we can.”

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www.akbizmag.com • Alaska Business Monthly • June 2010

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TRANSPORTATION SPECIAL SECTION

American Fast Freight Builds Green

Photos courtesy of American Fast Freight

Port of Tacoma warehouse, offices save energy.

American Fast Freight’s Fife operations moved into a new eco-friendly building in January. The new office/warehouse location on the Puyallup River flatlands in the shadow of Mount Rainier, exceeds all current environmental construction regulations and has the highest energy rating as a warehouse can have.

BY HEIDI BOHI

S

ince the energy crisis of the 1970s, when green building practices first began to advance from a novel idea to a practical reality, companies have quickly began to see the measurable benefits of designing and building commercial spaces that greatly reduce the negative impact on the environment.

According to the Environmental Protection Agency, in the United States buildings account for 39 percent of all energy use, 68 percent of total electricity use, 12 percent of water use and 38 percent of carbon dioxide emissions. If a few solar panels could make buildings more efficient, lower energy bills and reduce a company’s footprint, designers and builders wondered, what else could be done to reduce reliance of buildings on fossil fuel?

Today, eco construction includes a growing list of products and processes that not only reduce costs and waste,

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but also encourage employees and clients to have a top-of-mind green awareness and improve relationships with the entire business community.

Apply this thinking to a 94,348square-foot warehouse with additional office space, and the efficiencies realized by investing in green construction are especially apparent, says Tim Jacobson, CEO of American Fast Freight (AFF), of the green warehouse and shipping terminal his company completed last year in the developing community of Fife, Wash., next to the Port of Tacoma. The new facility covers 20 acres of property and employed 160 people during construction.

AFF’s core business is in oceanfreight transport to the Jones Act (offshore) markets of Alaska, Hawaii, Guam and Puerto Rico. It operates several container-freight stations in Seattle-Tacoma, Oakland and Long Beach, Calif. In Alaska, terminals are

located in Anchorage, Fairbanks and Kenai-Soldotna. Hawaii operations are centered in the Honolulu facility. The company handles all types of product shipments including most consumables, retail merchandise, perishables, recreational equipment, health aids, construction materials, marine-fishing supplies and oversize shipments, boats and vehicles.

SUSTAINABLE BUILDINGS As Kermit the Frog laments, Jacobson says, it’s not easy being green, especially in the transportation industry where the business relies heavily on consuming fuel and energy. Buildings use resources such as energy, water and raw materials, generate waste (occupant, construction and demolition), and emit potentially harmful atmospheric emissions. The challenge is to build new facilities that are accessible, secure, healthy and productive wile

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minimizing the impact on the environment. At the same time, though the initial outlay of cash for including sustainability initiatives can be costly, ultimately they pay for themselves by reducing operation costs. In the case of AFF, though the energy-efficient systems were 30 percent more expensive to build, in two to three years company leaders expect the investment to pay for itself, resulting from about a 40 percent reduction in electricity costs and installing the highest-rated, energy-efficient systems.

Including the land purchase, it was $15 million to build the new terminal, in which 90 percent of all steel is recycled and 70 percent of the carpeting is also made with recycled materials. Because the company has only been in the facility for about five months, it has not had adequate time to fully analyze the potential energy savings.

“When we have operated through each of the four seasons, we will be better able to tell how much of an impact these environmental systems have,” says Christina Hallock, an AFF communications representative.

According to standards guiding the sustainable-design approach to commercial construction, the AFF structure adheres to the integrated synergistic approach, including supporting an increased commitment to environmental stewardship and conservation, and resulting in an optimal balance of cost, environmental, societal and human benefits while meeting the mission and function of the building.

OBJECTS AND PRINCIPLES The main objectives of sustainable design are to avoid resource depletion of energy, water and raw materials; prevent environmental degradation caused by facilities and infrastructure throughout their life cycle; and create built environments that are livable, comfortable, safe and productive.

Key principles are: 1) optimizing the site selection and considering how the building affects the local ecosystems, transportation methods and energy use; 2) optimizing energy use by finding ways to reduce load, increase efficiency and use renewable energy resources; 3) protecting and conserving water by making sure the building

reduces, controls and treats site runoff, uses water efficiently and recycles water for on-site use when possible; 4) using environmentally preferred products that minimize environmental impacts such as global warming, resource depletion and human toxicity; 5) enhancing indoor environmental quality for improved health, comfort and productivity conditions; and 6) implementing operational and maintenance practices that include ways to monitor progress of sustainability initiatives, including reductions in energy and water use and waste generation, in the facility and on site.

EFFICIENT LIGHTING Full-spectrum-HD, high-bay, T5-lighting fixtures in the warehouse and T8 in the office area offer the highest energy rating available on the market, Hallock says. Although they cost about 50 percent more than traditional metal halide systems typically used in large areas like this, they have a 75 percent longer rated lamp life and are expected to reduce the energy bills by 50 percent to 75 percent, which means they will pay for themselves in two years. The mercury-free light bulbs produce bright, true-to-life color and increase light distribution by 30 percent to 40 percent, which is also proven to increase employee mood and productivity.

Double-paned windows throughout the warehouse are filled with argon gas, which is thicker than air, and have a low emissivity coating on the glass that reflects direct-infrared-heat rays and helps stop the loss of heat in the winter, while helping maintain cooler inside temperatures in the summer. They also allow visible light to pass while blocking certain amounts of damaging ultraviolet and infrared light.

WHITE ROOF The white roof, coated with thermoplastic olefin (TPO) and constructed from ethylene propylene, reduces the amount of energy required to cool the building, cutting the amount of energy consumed and lowering energy costs, Hallock says. Below the TPO coating is a thick layer of insulation and then a roof deck made of oriented strand board made by processing small, fast growing trees into thin strands which

American Fast Freight invested in electric forklifts with will reduce the company’s overall carbon output and will reduce fuel costs enough to pay for themselves in two to three years.

are bonded together in a crisscross pattern under heat and pressure with an exterior resin binder. The wood used is grown specifically for this purpose and no old-growth timber is used.

Less energy consumption means fewer pollutants put into the atmosphere, directly contributing to a cleaner environment and significantly helping reduce the urban heat-island effect.

“In plain English, the roof doesn’t get as hot in the summer and therefore does not blast heat back into the atmosphere – nor does it overwork the building air conditioning system,” she says.

BETTER ENVIRONMENT Creating a better environment for AFF employees is another big advantage of the new green building, Jacobsen says. Skylights in the warehouse assist in properly lighting the building and the natural light boosts warehouse employee mood and morale. At the same time, employees are all in one building now, eliminating driving between two buildings and facilitating team building.

It also creates a green awareness, not only among employees, but with clients and the entire business community. Employees are more and more enthusiastic from being able to better to see the efficiencies in handling cargo.

“There is a complete awareness companywide about what these improvements mean in the aggregate.

It’s not just new, it’s efficient, clean, has a good sight line and security is ❑ improved,” Jacobsen says.

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TRANSPORTATION SPECIAL SECTION

Seasonal Airlines Return with Tourists Alaska Air dominates year-round reliability.

Photo courtesy of Alaska Airlines

Alaska Airlines offers year-round service to Seattle from Anchorage, Fairbanks, Juneau and Ketchikan, along with increased daily summer service from Anchorage to Denver, San Francisco and Los Angeles.

BY HEIDI BOHI

T

here is nothing quite like the news of less expensive airfares to send Alaskans packing. In a state that is removed from the continental United States, where almost nobody is from here, and locals have to fly via Seattle just to cross the street, the chance to book an itinerary that is relatively affordable and easy to use means one more opportunity to fly to the Lower 48 or beyond without wiping out the year’s entire travel budget.

As recently as 20 years ago, Alaskans were held hostage by less than a handful of carriers, with Alaska Airlines dominating the market. Many Alaskans, depending on where they live, will say that’s still the case, as both passengers and competing airlines wait to see what their next move is before making any decisions. While that is open to interpretation, as local travel guru Scott McMurren says,

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“God bless Alaska Airlines,” for being counted on to offer year-round service to Seattle from Anchorage, Fairbanks, Juneau and Ketchikan, along with increased daily summer service from Anchorage to Denver, San Francisco and Los Angeles.

SUMMER COMPETITION In any market, competition means better prices for the consumer. As the number of flights and new destinations scheduled for Alaska this summer is increasing, it is likely that it will create more frenzy feeding among carriers resulting in cheaper tickets to larger cities in the Lower 48 states. And McMurren says the possibility exists that prices will drop even further in highly competitive markets where Alaskans travel to most – such as Seattle and Chicago – especially as the number of airlines entering these markets continues to increase. At

the same time, as prices in key markets drop, this benefit may also spill over to odd markets like Hartford, Conn., and other out of the way markets.

But, what happens next is anyone’s guess, McMurren says, and savvy travelers know to follow the market closely if they want to know what new routes are out there and what promotions allow them to take advantage of deals.

“It’s a moving target and the informed traveler pays attention because these days the airline is not going to tell you what their best deal is,” he says.

“It’s like a crime of omission.”

What most Alaskans don’t know, he says, is that there is no correlation between airfares and the route. It is simply a matter of supply and demand, along with the competitive structure in each market. A classic example of this, he says, is the fares between Anchorage and Juneau. Alaska Airlines pushes

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up the fares because they can: most of the passengers flying to Juneau are government workers who don’t pay for their travel. The same holds true for airfares to Western Alaska, where most passengers are being reimbursed by the government, tribal entities or Medicaid, he says.

“I’ve sold tickets to Juneau for $555.

So you see, it has nothing to do with what it costs to offer the service – all negotiations are political,” McMurren says.

The biggest buzz centers around new carriers entering Alaska, particularly Anchorage. Most airlines are entering the market just for the summer season, McMurren says, though as more carriers begin serving the state, it is one more market condition that will drive fares down from historically higher prices.

Although Alaska Airlines continues to enjoy “fortress hub status,” for now, McMurren says, it is no secret what everyone is charging for fares and that other budget airlines are also considering jumping into the ring. All of these factors could cause Alaska Airlines – the state’s leading airline--to be more flexible in its pricing.

SEASONAL RETURNS Probably the biggest surprise is the return of United Airlines to Anchorage with non-stop service to Chicago. The airline pulled out of the Alaska market last year. For now, United executives maintain that their presence will be limited to the summer season, though McMurren is skeptical and says they have called all their employees back. It is currently offering daily AnchorageSan Francisco, Anchorage-Denver and Anchorage-Chicago service.

Air Canada has resumed daily Anchorage-Vancouver, British Columbia flights. Though the starting price is more than $900 roundtrip, McMurren says he’s certain these fares will drop “If they want to have anyone on the plane.”

USAirways started daily non-stop service between Anchorage and Philadelphia on June 1, which is in addition to its daily, year round non-stop service between Anchorage and Phoenix. Although there are no deals on these flights yet, McMurren says he expects this to change as the season progresses. In June, the airline will also

add Anchorage to Philadelphia nonstop. “That’s huge,” McMurren says, adding that it’s the longest non-stop flight available and it’s onboard the internationally configured planes that offer more amenities such as seats that fold flat into makeshift beds.

Sun Country Airlines resumed almost-daily service between Anchorage and Minneapolis.

Last moth, American Airlines resumed non-stop service between Anchorage and Dallas and reinstated its Anchorage-Chicago non-stop service.

Frontier Airlines also launched Fairbanks-Denver service, which immediately resulted in measurably lower fares for Fairbanks locals, and resumed its daily Anchorage-Denver non-stop last at the beginning of this season. In fact, Delta lowered fares for travel to San Diego and Denver before Frontier arrived on the scene, McMurren points out.

As it has been doing for years, Condor German Airlines started its non-stop service from Fairbanks and Anchorage to Frankfurt, Germany, with prices starting at $740 roundtrip

Where the road ends…

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Anywhere you need it. Any season of the year. www.akbizmag.com • Alaska Business Monthly • June 2010

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Photo courtesy of Delta Air Lines

Delta Air Lines offers year-round service to Salt Lake City and Minneapolis from Anchorage, along with Detroit and Atlanta, once the tourism season starts.

from Anchorage. The airline also flies to and from Whitehorse, Yukon Territory, Canada, for travelers originating in Southeast.

Delta Air Lines, which now includes Northwest Air, continues its non-stop, year-round service between Anchorage and Salt Lake City, and between Anchorage and Minneapolis. Once the tourism season started in May, they increased their service from Anchorage to Detroit and Atlanta, while also increasing frequency of flights to Salt Lake and Minneapolis, operating as many as five flight a day on this route and three non-stop flights a day from Anchorage to Atlanta.

Although Continental Airlines used to be aligned with Alaska Airlines, when that relationship ended it joined up with the Star Alliance, a 26-airline membership network that requires airlines to comply with the highest industry standards of customer service, security and technical infrastructure. In addition to its Anchorage-Seattle line twice a week, in June, Continental started non-stop service from Anchorage to Portland and in May added non-stop services from Anchorage to Houston.

FARE FACTORS Southwest Airlines, considered a low-cost carrier, is the largest airline in the world according to the number of passengers, operating about 3,500

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flights daily and maintaining the third largest fleet of any commercial airline in the world. Although it hasn’t announced any plans to enter the Alaska market yet, McMurren says it’s no secret that the airline has been “snooping around,” because fares are so high and it has the business model to be a player in the Alaska market. That, he says, is a development that would completely change the air travel landscape in Alaska.

Another critical factor affecting air fares is the fact that there are 144,000 fewer cruise ship passengers this year, McMurren says. As a result, airlines are clamoring to fill seats and the way they do that is by dropping price, though mainly for those flying into Alaska, which can be seen especially with Frontier, United, American, Sun Country, Air Canada, USAir and Continental.

“I have never seen any attempt by these airlines to attract business from the local market,” McMurren says.

“The only one with any local presence is Alaska Airlines.”

Although consumers are not privy to the decision-making process used by airlines when these corporate giants decide whether to enter a market for the first time, or to expand their presence, when it comes down to it, McMurren says, it’s fairly straightforward. Airlines look at the numbers of passengers flying from the origin city and those that are

indicative of travel activity on the destination end. In the case of the increased service and number of airlines servicing Alaska during the May-September season, “they see Alaskans are traveling a bunch and they shoot when the ducks are flying, so they come in during the summer and establish a beach head.”

Using local airlines such as Northern Air Cargo for ground support means once they make the decision to increase service, or enter the Alaska market for the first time, they can turn on a dime.

Rather than having to invest in staffing operations with their own crew members they can contract these services out to local companies.

TOURIST TRADE Alaska consumers aside, for the visitor industry, airlines entering the Alaska market and increased service at a lower cost is great news, says Ron Peck, Alaska Travel Industry Association (ATIA) president. After losing 120,000 independent travelers who couldn’t afford to travel to Alaska last year, with all but 10,000 of them arriving via air, the increase in capacity is encouraging because additional markets at lower prices means there are more gateways open to the Alaska visitor industry.

When it comes to developing relationships with airlines, ATIA focuses mainly on maintaining and growing relationships with international air

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“I have never seen any attempt by these airlines to attract business from the local market.

The only one with any local presence is Alaska Airlines.”

– Scott McMurren local travel guru carriers, he says. It does this by helping various airlines build their market if they make a two year to four year commitment to fly to Anchorage. It’s about setting them and the state up for success, he says.

“Once the market is established, we can help them build,” Peck says, adding that each market is different based on their culture and how they travel as a country.

A case in point is the inbound Japanese market, which constitutes a significant part of the Alaska’s winter tourism business, a critical season for the shoulder part of the industry. Peck says, despite the recent economy, a long-term relationship with airlines such as Japan Airlines means a stronghold for the visitor industry, especially in the group-travel sector.

Although there are international routes ATIA continues to try and develop relationships with, such as Korea and China, the economy and visa issues have stalled these discussions.

“They’re very interested, but first they need to see the economy repel,” ❑ Peck says. www.akbizmag.com • Alaska Business Monthly • June 2010

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TRANSPORTATION SPECIAL SECTION

New routes add more than 100 miles, cost $1 billion-plus.

BY VANESSA ORR

W

hen the Alaska Railroad was first established in 1904 as a private rail line stretching just a few miles north of Seward, few people could imagine that it would someday play such an important role in the development of the Last Frontier. Today, the railroad carries more than 500,000 passengers annually, and more than 6 million tons of freight to destinations ranging from the Gulf of Alaska to villages within the Interior.

In 2010, the railroad will expand its reach even more. With roughly $43.1 million budgeted for capital projects, the Alaska Railroad Corp. continues to improve infrastructure while also expanding routes as a way to aid in the

economic development goals of the state. These new routes, which include the Northern Rail Extension to Delta Junction and the Port MacKenzie Rail Extension, will not only help to stimulate business within those areas, but might also open the door to expanded routes in the future, including, perhaps, a railway to Canada.

NORTHERN EXTENSION On Jan. 5, the Surface Transportation Board (STB) granted the Alaska Railroad Corp. the authority to construct and operate a new rail line in the area between North Pole and Delta Junction. The project, which will involve approximately 80 miles of new rail line,

will connect the existing Eielson Branch rail line at the Chena River Overflow Structure to a point near Delta Junction.

“This project is quite an undertaking.” said Brian Lindamood, project manager, special projects, Alaska Railroad. “It will take place in four phases, and cost somewhere between $600 million and $800 million.” The railroad is currently working on preparing final design and permit applications for regulatory agencies.

Phase one, the Tanana Access Project, will consist of building a bridge over the Tanana River near Salcha.

The second phase will connect the railroad from Moose Creek near North Pole to the Salcha crossing, which is

Photos courtesy of the Alaska Railroad Corp.

Alaska Railroad Northern Rail Extension project bridge location on the Nenana River at Salcha.

86

www.akbizmag.com • Alaska Business Monthly • June 2010

roughly 13 or 14 miles. Phase three will consist of rail construction from the Salcha crossing to the Donnelly Military Training Area, and phase four will connect Donnelly to Delta Junction, with the last two phases equaling approximately 60 miles.

“The bridge will take the longest time to build; the tracks to the bridge won’t be as complicated,” said Lindamood. “We have to start at the bridge in order to have it in place for the rest of the project.”

According to Alaska Railroad Corp.

Corporate Affairs Vice President Wendy Lindskoog, this stand-alone project will cost approximately $160 million. “The Alaska Railroad currently has $104 million of Department of Defense (DOD) money in the bank for this project, and we’re hoping to get $12 million reappropriated from the Department’s Fort Wainwright project for phase one,” she explained. “We’ll still need approximately $40 million, and we’ve got a capital request into the legislature in Juneau to see if the State will fund it.”

Operated as part of the Alaska Railroad system, the new line would be

Alaska Railroad train hauling gravel.

available to the general public, commercial and military shippers. It also would provide access to large military training areas south of the Tanana River between Fairbanks and Delta Junction that are owned by the DOD. Access to this area, the Joint Pacific Area Range

Complex ( JPARC), is limited to ice roads during a short period of the year.

“This new rail line will have direct and indirect benefits,” said Lindamood.

“The military has a world-class training facility, but they can’t get to most of it. The military will get year-round

www.akbizmag.com • Alaska Business Monthly • June 2010

87

Brian Lindamood Project Manager, Special Projects Alaska Railroad

access, which in turn, leads directly to the sustainability of the base long-term.

“On a local level, we are designing the rail line so that it will be able to provide passenger service between Delta Junction and the Fairbanks area.

The Richardson Highway is a two-lane road that takes an hour-and-a-half when the weather is good; quite a bit longer when it’s bad. Because there is no redundancy in the transportation system

88

between Delta Junction and Fairbanks, we would be able to provide an alternative method of transportation.

“Delta Junction is an attractive place to live, but it doesn’t have a large medical community or many commercial facilities,” he continued. “We can provide residents with a means to go to Fairbanks for more opportunities.” One added benefit to residents of Salcha is that the bridge project requires stabilization work along the northern riverbank, resulting in flood control.

Temporary construction is expected to provide more than 100 jobs. In the long-term, two to five people will be employed to work in a small maintenance facility in Salcha. “As train traffic develops, there may be more positions,” said Lindamood.

Because no one has previously constructed a bridge in this location and there are many unknowns on the supply side, the railroad has chosen to hire a construction management general contractor (CMGC) to participate in the design and permit process. “The CMGC can work with us both on engineering issues and supply chain issues,

because getting things to Fairbanks could be a major problem,” Lindamood explained. “On the permitting side, it helps to have the contractor at the permitting table so that there is no confusion over the interpretation of rules two years from now.”

While a CMGC had not been selected at the time of this article, bidding was closed and Lindamood expected to have a company hired by the end of April, with permitting finished by the end of summer. Once phase one is under way, the railroad has two years to get funding in place for phase two, when they will make a decision on procurement for that part of the project.

PORT MACKENZIE A second project that will aid in the economic development of a number of Alaska communities is the Port MacKenzie Rail Extension, a joint proposal of the Alaska Railroad and the Matanuska-Susitna Borough. Depending on the route involved, the project will involve 30 to 45 miles of new rail line extending from Port MacKenzie to the railroad’s main line at some point

www.akbizmag.com • Alaska Business Monthly • June 2010

between Meadow Lakes and north of Willow. The rail line would support the port’s potential as a bulk resources export and import facility.

“This project is a good example of what the State owning the railroad can do,” said Lindamood. “You have the Borough trying to develop a port facility, but to be successful, they need rail service. The Borough went to the State to get money for the EIS (Environmental Impact Statement) process, which, if approved, will result in the railroad having a license to construct the rail line.”

The draft EIS was recently published by the STB, and public comments closed May 10. “Hopefully in late summer or early fall, they will publish the final EIS, and the STB proper, a three-member board, will decide on what route to license for construction and operations,” said Lindamood.

“The biggest challenge under consideration by the STB now is that there are a number of proposed routes: three in the northern section and two in the southern section,” he continued. “Each of these will have completely different impacts on different communities. At the end of the day, we will build a railroad and someone will not be happy.

It’s very difficult to figure out how to weigh everyone’s concerns.

“Many people support the project and want a port and rail line, but no one wants to be affected by trains running through their backyards,” he added.

“We have to figure out where we will build it, and then work with who is directly affected.”

Another challenge facing the Port MacKenzie Rail Extension is funding. The Borough continues to seek additional development money while constructing a bulk commodities road loop at the port to facilitate shipping by truck in advance of rail construction.

In addition to receiving $10 million from the State during the 2007 legislative session and $17.5 million during the 2008 legislative session, the Mat-Su Borough requested $57 million during the 2010 session to pursue design and construction of the rail embankment for the southern portion of the alignment.

Final design and construction of the rail spur to Port MacKenzie is estimated to cost an additional $170 million to $240 million, depending on the route selected.

“Based on funding, realistically, trains could be running in two to three years,” said Lindamood. “If we start construction in spring 2011, trains could be running by 2014.”

CANADA CONNECTION While the idea of an Alaska-Canada rail line was big news during Gov. Frank Murkowski’s reign, the concept has since been put on the back burner. Estimated to cost between $11 billion and $13 billion back in 2007, the 1,100 mile to 1,200 mile track linking the two

regions isn’t currently an active project.

“While we’re still planning to move forward, the first step is completing the rail line to Delta Junction, and once we’re there, we can start moving east,” explained Bruce Carr, director of strategic planning. “At that point in time, we’ll engage British Columbia, the Yukon Territory, the federal government of Canada, First Nations and Alaska Natives in the project; it’s a fairly large effort. But right now, our focus is on expanding rail lines to Delta Junction ❑ and to Port MacKenzie.”

www.akbizmag.com • Alaska Business Monthly • June 2010

89

TRANSPORTATION SPECIAL SECTION

Multimodal Cargo Transportation

Marine shipments delivered via air, rail and road.

BY DIANNE O’CONNELL

Photo courtesy of Horizon Lines of Alaska

Truck-sized containers are visible stacked on deck of one of Horizon’s D-7 container ships as it docks in Anchorage.

I

f the port were to be disrupted for any reason, it would take less than two weeks for every householder shopping in Anchorage to experience the shortage and to know exactly where his or her family’s food comes from and how long it takes to get here.

“We’re a meat and potatoes port,” says William J. Sheffield, former governor of Alaska and current director of the Port of Anchorage, “We’re the first point in the groceries delivery system for the whole state, except Southeast, and we have a seven- to 14-day supply of food and fuel here in Alaska.”

PORTS In 2008, there were 4.4 million tons of goods shipped through the port, approximately eight-and-a-half tons per each of the state’s 510,000 residents served by the facility.

90

Marion G. Davis is vice president and general manager of Horizon Lines, one of two cargo container transportation companies serving the port. He agrees with the governor.

“Eighty to 85 percent of all foodstuffs and other freight coming into Anchorage, the Interior, Seward, Kodiak, the Aleutian Chain and Western Alaska comes through the Port of Anchorage,” Davis said.

“There are a few exceptions,” Sheffield adds. “The Alaska Railroad contracts for a barge from Seattle to Whittier, which takes a week to get here.

Alaska Marine Lines is the barge company. That’s part of Lynden Transport.

About two-thirds of the barge capacity is dedicated to containers of nonperishable foodstuffs. The containers are offloaded to railroad cars in Whittier and brought to Anchorage and on to the Interior.”

Sheffield should know. He also was CEO for the Alaska Railroad for a number of years.

“Seven to 10 percent of the state’s food, I’d say, comes in on that railroad barge. A small portion is trucked up the highway system or flown into the villages, but the majority is shipped via container ships.”

MULTIMODAL SHIPPING So it is that Alaska relies on food and other products from Outside (the state).

Aside from some home gardening and a bit of barley, milk and beef, Alaska today relies, as we have in the past, upon a complex web of container ships, steamships, tugs and barges, boats, fleets of big trucks and privately owned small trucks, hundreds of railcars and a flock of airplanes of all sizes, to move canned goods, dried foods, fresh produce and

www.akbizmag.com • Alaska Business Monthly • June 2010

meat, exotic spices, whatever the chef in your house could possibly order, plus heating oil for rural areas and jet fuel and gasoline.

Alaska has approximately 200 towns and villages ranging in size from the Municipality of Anchorage with almost 300,000 residents, to Wiseman, in the Brooks Range, with a population of 21. Everybody from Anchorage to Wiseman has to eat and to stay warm. How are the fuel and goods shipped to Alaska and distributed to these communities?

“We are a container port,” Sheffield says.

A container is a standardized, trucksized, cargo-shipping module, which is sealed and loaded intact onto container ships, railroad cars, planes or trucks.

Huge cranes lift the containers off the docked ship and lower them onto the backs of waiting trucks, or are rolled off of roll-on/roll-off vessels.

Totem Ocean Trailer Express (TOTE) with about 10 Hostler trucks, and Horizon Lines (formerly SeaLand), with about 25, are the main suppliers of container-transportation services at the Port of Anchorage. These two competitors work with individual companies and also with consolidators. The largest volume of freight is handled by consolidators such as Span Alaska, Pacific Alaska Freightways, Lynden and Carlile. The consolidators fill trucks with merchandize from several companies. When the containers land at the port, the consolidators bring the containers to their distribution centers.

At these centers, the consolidators fill trucks with merchandize to be delivered to specific customers.

FOOD TRANSPORT In the case of the two major supermarket chains in Alaska, each company uses a different shipper. Carrs-Safeway uses Horizon and Fred Meyer uses TOTE. Most other chain stores split their shipping between the two.

Shipping food has increased over the years, according to Horizon’s Davis, not just because of the increased population, but because of the larger chains entering the Alaska market, such as Fred Meyer, Sam’s Club, Costco, Wal-Mart and Target.

“We consider ourselves the grocery www.akbizmag.com • Alaska Business Monthly • June 2010

91

water side. The Coast Guard occupies the first floor of the port office building and port offices occupy the second floor. Since Sept. 11, 2001, additional security and several checkpoints have been added. Doyon Ltd., the Native regional corporation for Interior Alaska, holds the security contract.

Photo courtesy of Everts Air Cargo

PORT EXPANSION NEEDED

Fish totes full of headed and gutted salmon are loaded onto Everts Air Cargo plane for trip to Anchorage.

and hardware shipping specialists,” Davis says. “We move dry goods, canned goods, paper and coffee, but also are equipped for chilled goods, like bananas, which must be kept at 58 degrees and frozen goods, which we keep at minus-15 degrees. And, of course, some food must be kept warm so it doesn’t freeze; all are shipped in insulated containers designed for that purpose.”

Horizon’s predecessor, worldwide SeaLand Transportation, began calling at the Port of Anchorage after the 1964 earthquake wiped out the docks in Whittier, Seward, Kodiak and other Alaska coastal communities. The small dock at Anchorage had held, was still standing and still functional. Where it had not been before, Anchorage became and remains the hub for marine shipping in Alaska.

And now Horizon serves Alaska, Hawaii, Guam and Puerto Rico.

“One of our three D-7 class container vessels docks in Anchorage every Sunday and Tuesday, in Kodiak

92

on Mondays and Wednesdays, Dutch Harbor on Fridays and Tacoma, Wednesdays and Fridays,” Davis says. “It takes all three vessels to make the rotation.”

In addition, with service from Anchorage, Kodiak and Dutch Harbor, Horizon handles much of the transportation needs of Alaska’s seafood industry. In the summer, salmon are harvested throughout the state.

Dutch Harbor is the hub of the Bristol Bay fishery where last year almost 30 million sockeye salmon were caught through mid-July. It was one of the top five years in recent decades. In Kodiak, sockeye runs were down, but pinks returned in high volumes.

The port also serves the five major military installations in the state and is beginning to attract the cruise ship industry.

In answer to whether or not the port was well-secured, Sheffield said Elmendorf Air Force Base was directly behind it and the U.S. Coast Guard Maritime Safety and Security team protected the

Is the Anchorage’s port big enough to handle Alaska’s needs?

“Just barely,” Davis says. “We need space to park our trucks and containers. Between us (Horizon) and TOTE, we’ve just about consumed the entire port area. The expansion of the port will create another 135 acres, which will be needed by both carriers by the time the port is completed.”

“The existing port is 55 years old and in need of continual repair,” Sheffield said. “We spend about $5 million a year just in keeping what we have safe and in good shape. We install sleeves on the deteriorated piles that hold them up.”

Sheffield takes out a laser pointer and details the current port expansion project on a wall map across the room.

“We have a cruise ship coming in here every other Monday starting in late May,” he says. “We never had that before; they always came into Seward or Whittier. We expect more to follow.

On Sundays and Tuesdays, we have container ships out here, and this whole area is full of waiting trucks. We have ships from Korea and China bringing in pipe and steel for construction and oil-patch work. We have cement ships from Korea. In the future, ships will be coming in from Asia to offload their cargo here. They will load it onto a ship for Tacoma and six days later it’s in Chicago. If the shipper takes his cargo to Los Angeles rather than Anchorage, it takes two to three weeks longer to get to Chicago. That’s because of back-up in Los Angeles and the fact that we are especially efficient. We’ll be even more efficient with our two new barge docks, two more main berths and planned remodeling of the existing facilities.”

ALASKA RAILROAD But let’s leave the port for a moment and follow the food for the next leg of its journey. There are many forks in the road – one choice being rail.

www.akbizmag.com • Alaska Business Monthly • June 2010

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â&#x20AC;&#x153;The Alaska Railroad was established in 1915 when the federal government took it over from several bankrupt organizations, which had been trying to reach the Interior with freight service for several years,â&#x20AC;? according to Steve Silverstein, Alaska Railroad Corp. vice president for business development.

The 21st century Alaska Railroad owns or leases about 1,500 railcars of various sorts and maintains and operates another 500 for private customers, Silverstein says. Another 3,000 or so railcars come in from Outside each year, which the Alaska Railroad loads, unloads, inspects and maintains. â&#x20AC;&#x153;Most of the foodstuffs we handle move between the Port of Anchorage and Fairbanks,â&#x20AC;? Silverstein says. â&#x20AC;&#x153;While some of that freight is destined to ultimately be delivered to small communities like Denali Park, Healy, Nenana or North Pole, we do not provide that service directly. I canâ&#x20AC;&#x2122;t tell you exactly what kind of food is in each of those trailers because they come to us already packed. The railroad takes the packed trailers to their destinations where trucking companies and third-party distribution companies pick up the freight to deliver it to grocery stores or food brokers. We do haul some foodstuff from Whittier to Anchorage and Fairbanks for a flat-deck barge operator and trucking companies, but very little.â&#x20AC;? â&#x20AC;&#x153;We do not provide refrigerated railcars, but we have railcars that can haul trailers which are equipped with refrigeration or â&#x20AC;&#x2DC;Keep From Freezingâ&#x20AC;&#x2122; units. Electrical outlets are available on the train for trailer customers to plug-in such equipment. We provide northbound and southbound service for these trailers four days a week with a committed schedule and capacity for the customer. Service on the other three days is also available, but with fewer guarantees,â&#x20AC;? Silverstein says. â&#x20AC;&#x153;Our trailer traffic has grown considerably, both with the population growth and with our ability to serve the trucking customers technologically with more reliable scheduling and better electrical service for the trailers.â&#x20AC;?

The Alaska Railroad has been owned by the State since 1985, but is unlike any other State agency, in that it is incorporated and run like a private business. Self-sustaining, it receives no

operating funds from the State and its 670 workers are not State employees. â&#x20AC;&#x153;Revenue generated in 2009 came from freight 68 percent, passenger service 17 percent and real estate holdings, 15 percent. Real estate is a major piece of our revenue stream in that it is high margin business for us and contributes significantly to our capital program,â&#x20AC;?

Silverstein said. â&#x20AC;&#x153;The railroad both competes and cooperates with other modes of transportation, depending on the portion of the business. We compete with steamships, flat deck barge operators and truckers for Interstate freight from the Lower 48 and Canada. The railroad brings no food into the state, but once it is in state, plays a major role in distribution throughout the state. Air freight and rail work off two separate business models and really arenâ&#x20AC;&#x2122;t competitors, at all.â&#x20AC;?

HIGHWAYS AND AIRWAYS So, following the food, what happens once it is offloaded at the port or offloaded from the railroad or one of the multitude of trucks rolling along one of Alaskaâ&#x20AC;&#x2122;s very few highways? If the destination is of a remote nature only accessible by air or if the food is particularly perishable and requires expedited transport, it might find itself being loaded into one of Everts Air Alaskaâ&#x20AC;&#x2122;s mail and freight planes serving the Interior.

Cliff Everts was an Alaska Bush pilot for 35 years, flying for Wein Air Alaska out of Fairbanks. He owns Everts Air Fuel, which supplies fuel oil to Interior villages. In 1993, his son Robert purchased Tatonduk Outfitters Ltd., a small-plane operation transporting passengers, freight and mail from Fairbanks to Interior locations. According to Director of Ground Operations Susan (Everts) Hoshaw, the company was renamed to Everts Air Alaska and a sister company called Everts Air Cargo later formed. Everts Air Cargo operates larger aircraft and provides both scheduled and unscheduled service to destinations throughout Alaska. Everts is one of the few, possibly only, remaining family owned, large air-cargo operations in Alaska.

The company has a fleet of eight DC-6s and two C-46 World War II vintage aircraft, which it is especially fond

www.akbizmag.com â&#x20AC;˘ Alaska Business Monthly â&#x20AC;˘ June 2010

of. The Curtis aircraft are still in service because they meet unique Alaska runway conditions such as being able to land on short, gravel strips. Everts also operates two Embraer 120s, which are the newest members to the fleet. Everts participates in the federally subsidized bypass-mail program, where mail, foodstuffs and other consumables, bypass the post office and are flown to small villages at reduced postal rates, saving money for both shipper and consumer. Orders come from businesses and organizations such as Alaska Commercial Co., freight consolidators and nonprofits.

Everything is on a bit smaller scale than at the Port of Anchorage, but the same issues must be addressed as the food makes the last leg of its trip to a hungry man or woman in, say, the Brooks Range. â&#x20AC;&#x153;Alaskans are the biggest consumers of ice cream in the nation,â&#x20AC;? Hoshaw says. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s one of the most difficult foodstuffs to transport and we ship a lot of it. There are inherent challenges (depending on the season) in transporting, transferring and delivering frozen and fresh items to the villages. We take

many precautions in order to keep the ice cream frozen, the produce and eggs from freezing and so forth. Special arrangements are often made with the shipper to ensure the ice cream or frozen food product is solid to begin with.

The foodstuff may then be wrapped with an insulated pallet cover and timed accordingly for delivery. Other air carriers use unit load device, sometimes called igloos, which may be insulated and are able to carry multiple pallets at a time.â&#x20AC;?

Hoshaw says there are 148 Alaska communities the company serves through regularly scheduled flights, charters and flag-stops. A flag-stop is a reroute off of a scheduled destination used for volumes of cargo that constitute less than a full aircraft load. A customer may also call in and request something like, â&#x20AC;&#x153;I see you are flying in this general direction, if you have room, could you stop here?â&#x20AC;?

Everts sponsors numerous community events and most recently assisted with the Kobuk 440 sled dog race in Kotzebue. â&#x20AC;&#x153;This year, we were one of the

sponsors of the Kobuk 440 and Spring Festival Sourdough Pancake Breakfast,â&#x20AC;? Hoshaw said. â&#x20AC;&#x153;We contributed the transportation of hay, as well as, the groceries needed for the breakfast.â&#x20AC;?

In the summer, Everts flies fish from many communities to Anchorage or other locations to be processed. â&#x20AC;&#x153;Most of it arrives as either boxed fish or H and G (headed and gutted) in large fish totes,â&#x20AC;? Hoshaw said.

Everts participates in another kind of back-haul program, as well â&#x20AC;&#x201C; bringing out recyclable items that have cluttered villages for years â&#x20AC;&#x201C; old batteries, vehicles, other worn out machinery.

Itâ&#x20AC;&#x2122;s a community service that Everts is pleased to be a part of.

As I leave Everts, I remember Bill Sheffield sitting in his office at the Port of Anchorage overlooking Knik Arm, watching the ships come in. Then I see a bearded sourdough of an undetermined age, in a far off community like, perhaps, Wiseman. The sourdough is standing beside a gravel airstrip, waving goodbye to an Everts Air Cargo plane with one hand and holding an ice cream bar made in Oregon in the other. â?&#x2018;

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ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2010 TRANSPORTATION DIRECTORY AIR CARGO ! )

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www.akbizmag.com â&#x20AC;¢ Alaska Business Monthly â&#x20AC;¢ June 2010

101

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2010 TRANSPORTATION DIRECTORY CARGO & FREIGHT ARRANGEMENT '

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www.akbizmag.com â&#x20AC;¢ Alaska Business Monthly â&#x20AC;¢ June 2010

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2010 TRANSPORTATION DIRECTORY CARGO & FREIGHT ARRANGEMENT $"% #-

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www.akbizmag.com â&#x20AC;¢ Alaska Business Monthly â&#x20AC;¢ June 2010

103

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www.akbizmag.com â&#x20AC;¢ Alaska Business Monthly â&#x20AC;¢ June 2010

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2010 TRANSPORTATION DIRECTORY LAND: RAIL & TRUCK & ! !

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www.akbizmag.com â&#x20AC;¢ Alaska Business Monthly â&#x20AC;¢ June 2010

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www.akbizmag.com â&#x20AC;¢ Alaska Business Monthly â&#x20AC;¢ June 2010

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ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2010 TRANSPORTATION DIRECTORY LOGISTICS '

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www.akbizmag.com â&#x20AC;˘ Alaska Business Monthly â&#x20AC;˘ June 2010

111

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ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2010 TRANSPORTATION DIRECTORY MARINE "

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113

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2010 TRANSPORTATION DIRECTORY MARINE (

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ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2010 TRANSPORTATION DIRECTORY MARINE '

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Providing Service & Value With over four decades of delivering freight to Alaska Asset Based Comprehensive Web Services Electronic Tracing Professional Drivers Dedicated Customer Service Intra-State Alaska Service Visit www.pafak.com or give us a call at any of our Alaska locations for more information or to schedule a pick up.

Delivering Customized Solutions

Anchorage 336-2567 | Fairbanks 452-7971 | Kenai 262-6137 | Kodiak 486-8501 | Fife 800-426-9940 www.akbizmag.com â&#x20AC;˘ Alaska Business Monthly â&#x20AC;˘ June 2010

115

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www.akbizmag.com â&#x20AC;¢ Alaska Business Monthly â&#x20AC;¢ June 2010

FISHERIES

Photo by Rick Gershon / Getty Images / Courtesy of Discovery Channel

The ultimate tough guys of TV return to the Bering Sea for an all-new season of crab fishing. From treacherous weather to crew conflict to the death of beloved Capt. Phil Harris, the sixth season takes viewers through some of the roughest situations the captains and crews have ever had to face on the high seas.

Deadliest Catch Windfall Show brings viewers and feasibly wealth to Alaska.

BY MARKOS N. KAMINIS

T

he February passing of Capt.

Phil Harris, the skipper of the crabbing vessel Cornelia Marie, made national news and caught the world’s attention in the process. In case you have been lost at sea since its 2005 debut, you should know that Capt. Phil and his ship star on the Discovery Channel’s hit show, Deadliest Catch. Phil’s boat is but one of scores of fishing vessels that set out each prime time season for Chionoecetes opilio crab, known more

commonly as snow crab. In its relatively short lifespan, the series detailing the adventures of Alaska crabbers, has become one of the most popular programs on cable television. Deadliest Catch’s Tuesday April 27 episode, the last before press time, produced television ratings that placed it as the No. 1 prime time non-sports cable program that evening.

The death of this otherwise anonymous, tatoo-riddled seaman had made national news, and the realization hit

just how important this unique television program had become. Eyes were opened by the fact the five-yearold program has been a significant, though perhaps stealth, PR vessel for the state of Alaska. The program has been important for Alaska fishing, and is the Alaska image on the minds of many Americans. It could also inspire Alaska’s business community to strategize about how to best leverage the show’s PR pull going forward.

www.akbizmag.com • Alaska Business Monthly • June 2010

117

OPILIO ON THE MENU Alaska Business Monthly did not expect to see “opilio,” as Deadliest Catch crewmen call them, on the American menu, as was confirmed by a survey of Red Lobster, Landry’s Seafood House, McCormick & Schmick’s and Legal Sea Foods, four of the nation’s more important chains. While the scientific name of the snow crab may sound cool because of its infrequent usage, the big chains are not yet betting it can open the appetite of its diners for shellfish.

Nor, it seems, have they noticed how often the term “opilio” is referred to on the hit show.

However, Hawgs Seafood Bar, with its three eateries in trendy California, goes as far as to highlight its “opilio” crab sandwich on the menu. An Examiner restaurant review of the place, within which the critic spent a fifth of the article talking about how neat it was to be eating crab that could have been captured by Deadliest Catch crewmen, is exactly the impression hoped

by Alaskans.

Laurie Fagnani, president of Alaska advertising and public relations firm, MSI Communications, agrees. “There’s no doubt it has generated increased demand for crab,” she says. “The show really characterizes how much effort and care go into preserving the product from ship to shelf. It has improved the perception of crab by removing the mystery about it.”

Fishing dynamics are more complex than one might think, so an increase in crab demand that might be the result of the show does not necessarily translate into increased production. King crab, snow crab and Tanner crab represent scarce resources that are protected by the Alaska Department of Fish and Game. In 1999, the snow crab fishery was declared overfished, and the season was shortened to limit capture. Fishing quotas or open season controls, are often applied in the industry to keep the catch limited to a level that ensures preservation and revival of the species.

As the catch limit was controlled, crabbing became less appealing, despite the resulting rise in prices.

Thus, the fishing fleet dwindled significantly. Forrest Bowers, Bering Sea/ Aleutian Islands area management

118

biologist with the Alaska Department of Fish and Game, says “The Bering Sea crab fleet size has decreased by approximately two-thirds since 2005.” In 2005 a new management program called Crab Rationalization was implemented.

“Under the program harvesters, processors and coastal communities are allocated rights to participate in the fishery and may form voluntary cooperatives to improve efficiency,” he says.

“In addition a federal vessel buyback program removed approximately two dozen vessels from the fleet.” The good news is that the fishery has since seen improved estimates of crab numbers as a result.

Price is impacted by supply and demand, and so as supply was contained, price skyrocketed from an average of $0.88 per pound paid to fisherman in 1999, to $1.81 in 2000. The price reached as high as $2.05 a pound in 2004. Though a high price can limit end-demand for a good or service, and so it is even more difficult to measure the direct impact of the television show on crab demand.

ALASKA IS BIGGER THAN CRAB THOUGH Whether the show has raised the popularity of crab or not, it is likely to have a greater impact beyond just Alaska fishing. The opilio’s rise in popularity does not mark the first time a crab got famous though. “Alaska king crab legs” have been found on menus across the country for decades, and are right up there with Maine lobster in terms of name recognition.

Even so, it is doubtful the appearance of “Alaska” alongside “king crab legs,” has drawn many tourists to Alaska, nor even brought the state to mind during countless and undoubtedly tasty dinners. Deadliest Catch, however, would seem a different story.

The reality show highlights Alaska’s best aspects, its rugged, wild terrain and natural wonders. Indeed, Fagnani says, this is why Anchorage’s slogan is “Big Wild Life.” Alaska appeals to adventure-seekers, who attain a natural high from excitement and danger.

Deadliest Catch is a draw. After all, fishing is the most dangerous job in the world, which is what inspired the

show in the first place; and as far as fishing goes, crab fishing in the Bering Sea is the most dangerous of all.

Exploiting this fact, and because of the high probability of an emergency at sea, the show’s producers have even gone as far as to station a camera crew on call with the Coast Guard during filming. As it turns out, the emergency crew keeps pretty active. A crabbing vessel sinks or a crewman falls overboard – or is seriously injured on board a ship, just about every season. This past April, the fishing vessel, Northern Belle, sank in the Gulf of Alaska, and took its captain with it. Thus, for those seeking adventure, Deadliest Catch and Alaska are coupled.

Because of the heightened awareness the shows provide, or brand recognition, as Laurie Fagnani calls it, Alaska tourism stands to benefit as the economy recovers. Fagnani says individual lodges, fishing charters and a few communities have used the theme in promotion efforts. For instance, you might see a local community or establishment noting itself as the home of the crew of a Deadliest Catch vessel.

Going a step beyond those more obvious beneficiaries, general business development may even be seeing some modest improvement due to the appeal of the show, and its focus on wondrous Alaska. Perhaps an increasing number of ex-Alaska businesses are considering expansion or development into Alaska due to recent publicity and raised awareness. Fagnani agrees, stating, “It’s absolutely strengthening Alaska’s brand, in that it separates us from other destinations. It breaks through the clutter, and offers a glimpse of the unique Alaskan lifestyle.”

This unscientific study seems to clearly illustrate a rising national awareness of and interest in Alaska. Heck, crab-boat Capt. Sig Hansen appeared on NBC’s “Tonight Show with Jay Leno” in late April touting his dream of being on “Dancing with the Stars!”

When an Alaska crabber is appearing on Leno, it seems clear Alaska benefits.

The Deadliest Catch is directly focusing attention on Alaska in an appealing manner. This is something Alaska businesses would be wise to leverage now while the iron is hot, or rather, while ❑ the crab pot is full.

www.akbizmag.com • Alaska Business Monthly • June 2010

Photo by Doug Olander

TECHNOLOGY

Crackerjack Sportfishing Charters owner Andy Mezirow proudly displays a nice-sized halibut. Mezirow has gotten more website bites using SEO metadata “Seward Alaska fishing” than “Alaska fishing.” He’s using Adventure Engine for online booking.

BY TRACY BARBOUR

E

stablishing a personal connection with prospective and existing students is essential to Alaska Pacific University. That’s why the private college employs some of the latest Internet technology to make its website more engaging to visitors, who can explore through different entry points based on their areas of interest. They can quickly locate and view information from a programs, academics or admissions perspective.

Offering information in a more categorized fashion makes it more

meaningful to users and allows them to connect with APU in their own unique way, according to Michael Baker, APU’s director of information technology. “Each perspective student may interpret things a little differently,” Bakers says. “We felt it was important to emphasize the needs of the consumer.”

APPLYING ONLINE Visitors who are interested in enrolling can click on the “Apply Now” button that’s conveniently placed throughout the site. From there, they simply select

an area of interest, such as Campus Undergraduate, Early Honors or Degree Completion and follow the instructions to submit their application. Applying online is free and a special “applicant portal” keeps prospective students in the loop throughout the entire process.

“Instead of just having a stream of e-mails, phone calls and visits, there is one communication portal that they can log into any time of the day to see the status of their application,” Baker says. “This offers them an immediate visual of where they are. The

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system helps them along with what steps are necessary to complete their application.”

APU’s website also offers an online chat feature to enable people to contact admissions staff any time during the work day. As soon as the chat feature went live, it drew an incredible response. “We had five or six people chatting with our people per hour,” Baker says. “It changed the way our admissions people work.”

Baker says the Internet is changing the way APU does business. Younger consumers generally prefer to communicate online instead of pick up the phone. They have different expectations. “Because the demographic has changed, institutions that support that demographic are going to have to change or suffer,” he says.

APU’s website is a prime illustration of some of the latest ways Alaska organizations are leveraging e-commerce and Internet technology. Electronic commerce or e-commerce relates to buying goods and services online. But in a broader sense, it goes well beyond making purchases, according Joe Law of Sundog Media, which specializes in a variety of Web-related services.

ONLINE SALES Law says organizations are increasingly using their website to sell registrations, take donations and, in APU’s case, complete applications for enrollment. “They’re buying from your website without you spending your time to make the sale,” he says. “It’s always working for you even while you’re sleeping.”

However, an e-commerce site isn’t ideal for every business, Law says. For example, a company with a high-end, high-touch product may be better off focusing on in-store sells instead of e-commerce. Also, he says, businesses should take a graduated approach to putting up an e-commerce store. “Don’t try to place all your products online at first,” he says. “Pick your best products and see how they work, before you spend time putting everything on your website.”

While Law deals mostly with nonprofits, he’s seen a growing interest in e-commerce among businesses in general. He’s also witnessed several other

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interesting trends. For instance, many businesses are opting for a la carte solutions instead of having Web programmers do expensive custom coding.

Mal’s e-commerce free shopping cart service is a chief example. The company makes it simple for merchants to include a shopping cart on their website. They can add buy-now buttons to their product pages and start accepting payments immediately.

Essentially, Mal’s e-commerce makes it possible for merchants to easily process credit card and check orders securely online, without the expense of having their own merchant account. The shopping cart system supports payments via PayPal website standard or PayPal express checkout, Google checkout, Nochex, Moneybookers and Paymate.

PayPal is another increasingly popular option for processing online payments. Everyone recognizes PayPal as a safe entity and they’re comfortable with the idea of using PayPal, Law says.

“They have done a great job of making it easy for merchants to sell goods and services online,” he says.

Crackerjack Sportfishing Charters in Seward is taking a different approach to enabling e-commerce on its website. The business uses a customized program called Adventure Engine that allows website visitors to check the availability of boats and book trips directly online. “With this program, a tour wholesaler can sell my trip without ever talking to me,” owner Andrew Mezirow says.

Mezirow has been using Adventure Engine for about three years and says it’s been a great solution for his company.

“About 25 percent of my business is done via that system,” he says. “It cost no more to get the engine set up than to buy a point-of-sale system.”

EFFECTIVE SEO ESSENTIAL Law says Alaska businesses are also taking a greater interest in using the Internet to advertise online. Many of them are setting up Google AdWords accounts and using search engine optimization (SEO) to generate traffic.

With Google AdWords, advertiser’s “sponsored links” appear at the top

of Google’s search results and advertisers only have to pay if someone clicks on their listing. Law says all types of companies are using this type of payper-click (PPC) advertising, but stiff competition and high cost can make PPC ads out of reach for many small businesses. “If you’re an Alaska fishing guide, Google AdWords may not work for you,” he says.

That was the case with Crackerjack Sportfishing Charters. “It didn’t seem to pay off for me,” Mezirow says.

Instead, Mezirow prefers to compete for organic or natural search engine traffic. He meticulously uses SEO techniques to attract free traffic from Google and other major search engines. On April 2, for instance, his site ranked No. 1 on Google for the keywords “Alaska fishing charters.” And it didn’t cost him anything – except his time.

After working with SEO experts over the years, Mezirow – who is also an instructor for the Alaska Maritime Training Center – is perfecting his own unique brand of SEO. He’s received positive results from commenting on fishing forums on relevant websites.

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Just because you live and work in the Last Frontier doesn’t mean you have to be out of touch.

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“When I participate in a directory site forum for fishing, that kind of interaction seems to boost my ranking,” he says. “I put fishing reports up on the websites and answer questions.”

Law says the key to successful SEO is having useful content and skillful keyword selection. He encourages people to target the most coveted keywords, but also get the keywords at the bottom of the pile. They can also narrow down their keywords geographically. His one caveat is: target keywords that people are after.

“You should be going after keyword phrases that are most relevant to your services, the ones that are the least competitive and those that are actually being queried.”

Mezirow agrees. For instance, he’s noticed that many people search for the keywords “Alaska fishing,” but these keywords don’t generate enough traffic to convert enough sales on his website. For him, a more targeted search like “Seward Alaska fishing” produces better sales conversions.

Mezirow says SEO is a critical part of his online marketing strategy because it levels the playing field.

“I’m competing with people with more money than I have,” he says. “I can use my knowledge of SEO to get an upper hand on those rankings.”

SEO is the online marketing technique of preparing a website to enhance its chances of being ranked in the top results of a search engine. Standard SEO strategies involve a website’s content and keywords as well as

off-the-page elements such as inbound links and traffic volume.

Having an effective SEO program is essential because it’s the key to getting “found” online by people who are searching for products, services and information. In fact, more than 80 percent of all Internet users rely on search engines and directories to help them find what they’re looking for on the Web, according to research by the eMarketing Association. And about 70 percent of all online purchases originate from a search engine or directory.

CUSTOMER CONNECTIONS More Alaska businesses are using the Internet to connect to their target audiences. Blogging, which Law refers to as an online pulpit to express opinions, is becoming a trendy addition to websites or stand-alone element.

It allows business owners to establish themselves as experts in their field.

However, the real benefit of a blog depends on how businesses utilize the technology, he says. Many companies are using them as a promotional and money-making tool. The more popular the blog, the more money you can make selling advertising.

WordPress is quickly becoming the preferred software for blogging. The free, do-it-yourself tool enables bloggers to add separate web pages and, essentially, build an entire website.

“They’ve kind of morphed together; blogs are now regular websites,” Law says.

Businesses are also using electronic

www.akbizmag.com • Alaska Business Monthly • June 2010

newsletters to actively connect to their existing customers, according to Winnie Chichosz, marketing coordinator with the Alaska Small Business Development Center. Web-based solutions like Constant Contact are making it possible for small businesses with more time than money to manage e-newsletter campaigns completely inhouse.

In fact, her organization uses Constant Contact’s professionally designed templates for its weekly newsletter. Constant Contact, she says, is an ideal tool for any business to use.

“It’s easy for the businesses to learn it,” Chichosz says. “You won’t have a hard time.”

Chichosz, who is based in Anchorage, also has seen more Alaska businesses gravitating to social networking websites. Social marketing sites like Facebook and Twitter can be very effective places to promote a website, she says. “They’re additional tools that businesses can use to put their information out there.”

Another great promotional tool gaining popularity online is video, says Carla Hendrix, the owner of Alaska Web Design. Thanks to YouTube, it’s becoming easier for small business owners to generate video for their websites.

“YouTube is nice because it’s a lot less expensive alternative because you don’t have to store the video on your site,” Hendrix says.

Video can serve as a great complement to a website because it can help people illustrate certain aspects of their business. It can also add a personal touch, which can be hard to convey online.

GOING MOBILE On a slightly different positive note, some businesses are finding animated Flash websites aren’t compatible with smart phone technology. For example, the navigation buttons on Flash sites sometimes display incorrectly on the iPhone. To remedy this, some companies are offering duplicate websites with fewer graphics and more text.

That’s what Hendrix is doing for AlaskaAuction.com, providing a Flash and non-Flash option. She says it’s a relatively simple fix that seems to keep everybody happy. ❑ www.akbizmag.com • Alaska Business Monthly • June 2010

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ENERGY

Address rural energy needs today, conference attendees say.

BY DEBBIE CUTLER MANAGING EDITOR

Photos by Bill Zervantian/Bill Z Photography

H

ow would you like an energy solution that is fair to all Alaskans?

Would you be willing to take the step to pool all of the costs of energy together in a single unit, then have power companies buy back the assets and charge consumers equal amounts (with some adjustments to wasteful areas), no matter if you are in Bush Alaska or Anchorage?

How would you like your rates to rise or drop depending on where you live?

Is this the type of energy model we would like to go for?

“It would average out power costs,” said Ross Coen of the Alaska Center for Energy and Power (ACEP), based out of Fairbanks. “It might be an energy solution for the energy crisis, the high cost of power, to rural Alaska in particular. It would not transfer assets.

It changes the accounting structure, takes advantage of economics of scale.

It would eliminate the need for PCE (Power Cost Equalization, an energy subsidy program).”

Coen said it was the role of ACEP to facilitate this discussion, which did not generate much enthusiasm with utility companies present, nor some in the audience. One attendee from rural Alaska, who would have benefited greatly, called it “socialistic.” Coen said ACEP was neither in favor or opposed to this suggestion, just was bringing it to the table for discussion.

SOLUTIONS DISCUSSED Bob Tsigonis, owner of Lifewater Engineering Co., says “gone are the days These were the types of energy soluof carrying honey buckets folks, those ideas are stagnating in lagoons all tions discussed at the 2010 Rural Enover Alaska, but this here baby separates liquids and solids and turns it into ergy Conference, themed “New Energy a buffalo chip you can burn or bury … now that there is innovation!” for Sustainable Communities,” held in www.akbizmag.com • Alaska Business Monthly • June 2010 124

Fairbanks April 27 through April 29.

Wind energy, geothermal, tidal and wave, and biomass were all brought to the table.

Nearly 100 towns and villages from every region in Alaska were represented, and almost 450 people were in attendance. Also in attendance were most of the Alaska Native Regional Corporations, and about 25 vendors.

“It is wonderful to have so many from around the state to all talk about sustainable energy throughout the state,” said Luke Hopkins, mayor of the Fairbanks North Star Borough.

The Denali Commission was there, as was the Alaska Energy Authority, various electric associations, RurAL CAP, Green Energy Solutions, Lower Kuskokwin Economic Development Center and so many more organizations.

Topics ranged from “Energy in Alaska at the Federal Level,” to “Innovative and Change in Energy Use in Rural Alaska,” to “Diesel Efficiency,” “Renewable Energy Fund and Other Projects” and about a dozen other topics, each with several speakers in concurrent technical sessions.

One such speaker was Jerry Isaac, president of the Tanana Chiefs Conference, who represented 42 tribes and 235,000 square miles. “It’s a driving passion,” Isaac said, “the reduction of cost of fuel to villages.”

He compared high rural energy costs to an economic meltdown, rendering villagers almost helpless.

“It’s happening right in the middle of America,” he said. “God’s greatest country on Earth. The cost for villagers is outrageous. It causes outmigration.”

His goal: reduce energy costs to rural Alaska by 50 percent in a single year.

“The idea is born,” he said.

CONFERENCE GOAL The goal of the conference was to learn from each other. Here was the gathering spot for new ideas, new concepts.

It was an idea bank so to speak, and ideas were rampant. Some wanted affordable energy to Bush Alaska pronto. Some believed it would be too cost-prohibitive and suggested simple fixes such as weatherization projects or new low-energy lighting, already being done in rural Alaska. But most were

About 450 individuals, combined from every region of the state, attended the 2010 Rural Energy Conference in Fairbanks April 27-29. In many breakout sessions, it was standing room only.

in agreement. Something needs to be done, sooner rather than later.

Special assistants to U.S. Senators Lisa Murkowski and Mark Begich, and U.S. Rep. Don Young also spoke out to address these important issues. Not only were they concerned

about rural energy, but ANWR, the gas line, global crude costs, offshore and onshore development and other issues, collectively.

Joel Neimeyer, federal co-chair of the Denali Commission, said there has been about $440 million spent in

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125

Robert Bensin Bensin, electrical administrator for Bering Straits Development Co Co.

the Commission’s energy program.

Through FY09, about $981 million was spent by the Commission, 45 percent of which goes to the energy program. The Denali Commission has funded more than 2,000 projects since its inception in 1998, about 700 that are currently open.

“I’m ready to get to work to reduce imported fuel by 50 percent,” he said.

“When we are looking at sustainable projects, it’s hard not to look at sustainable communities.”

THEN THERE’S BERNIE Sustainable communities were also on the forefront of Bernie Karl, coproprietor of Chena Hot Springs

126

Resort. Karl is a natural innovator and was named 2010 Business Leader of the Year by the School of Business at the University of Alaska Fairbanks.

“Alaska should be leading the way in all energy and fuel issues,” he stated.

“We shouldn’t be following. Ever. Ever.

Ever. Ever.

“We should have a gas line and bullet line. We should worry about who will pay. We are the government. We own that gas.”

He also said we need to help our Native villages. “They were here before us,” he said. “We’re nothing but a bunch of thieves. I’m concerned about our future and I don’t want to wait

10 years and I don’t want to wait two years. Within 24 hours, we can be hauling propane (from the North Slope).

“What it takes is strong leadership.

What it takes is a government that wants it to happen. The propane is here.

Within 24 to 48 hours it can be (in rural communities). We can’t sit down now.

We can’t wait a year from now, not two years from now. Even turning on the lights costs a lot in the Bush. We need to help pay for that. Now.” Bernie gave a demonstration of the “do now” theory by saying for every minute he ran over his three-minute speech, he would fine himself $10. And he challenged the audience to also pay the fine, with the proceeds going to the Food Bank of Fairbanks.

“I went over seven minutes, so I gave $70,” he said. A garbage can was passed around, and in a matter of minutes, $1,760.76 was given to the Food Bank, the most touching, a 26 cent donation by a woman who said that was all she had.

“You did good,” said Karl. “You will feed a hungry person tonight.”

“I know,” she said with a smile. ❑

www.akbizmag.com • Alaska Business Monthly • June 2010

ALASKA THIS MONTH

BY JOEL AINSWORTH

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

Big Swings in Oil and Gas I

n 2009, direct employment in the oil and gas sector made up 4 percent of the Alaska work force, up from 3.3 percent in 2001. Impressively, while several industries shrank during this period, oil and gas enlarged its share of the Alaska employment market by approximately 22 percent during the last eight years. Employment in this sector has been highly variable relative to the average nonfarm employment trends in Alaska.

The graph illustrates the marginal changes in employment for the oil and gas sector compared to total nonfarm employment for Alaska. Certainly, some of these large swings can be attributed to small numbers of em-ployees that work in this sector, causing small changes in employment to appear exaggerated.

Yet, relative to industrial sectors of similar or smaller sizes, oil and gas remains highly variable. According to the U.S. Bureau of Labor statistics, the large swings can be attributed to employment in oil and gas being closely linked to market prices.

While employment in the oil and gas sector has remained positive since mid-2004, demand peaked in 2006. The demand for employment has continued to grow, but at a decreasing rate. In 2009, the oil and gas sector maintained a small growth of 0.8 percent; similar to where it began before the large upward trend in 2004. ❑

Source: Alaska Department of Labor and Workforce Development, U.S. Bureau of Labor Statistics

ALASKA TRENDS HAS BEEN BROUGHT TO YOU THIS MONTH COURTESY OF PACIFIC PILE & MARINE

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ALASKA THIS MONTH Indicator

GENERAL Personal Income – Alaska Personal Income – United States Consumer Prices – Anchorage Consumer Prices – United States Bankruptcies Alaska Total Anchorage Total Fairbanks Total EMPLOYMENT Alaska Anchorage & Mat-Su Fairbanks Southeast Gulf Coast Sectoral Distribution – Alaska Total Nonfarm Wage & Salary Goods-Producing Service-Providing Natural Resources & Mining Logging Mining Oil & Gas Extraction Construction Manufacturing Wood Products Manufacturing Seafood Processing Trade/Transportation/Utilities Wholesale Trade Retail Trade Food & Beverage Stores General Merchandise Stores Trans/Warehouse/Utilities Air Transportation Truck Transportation Information Telecommunications Financial Activities Professional & Business Svcs Educational & Health Services Health Care Leisure & Hospitality Accommodation Food Svcs & Drinking Places Other Services Government Federal Government State Government State Education Local Government Local Education Tribal Government Labor Force Alaska Anchorage & Mat-Su Fairbanks Southeast Gulf Coast

128

Previous Report Period (revised)

Year Ago Period

Year Over Year Change

Period

Latest Report Period

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

4th Q09 4thQ09 2nd H09 2nd H09

30,051 12,099,289 193.456 215.935

29,943 12,077,636 193.456 215.935

30,237 12,125,350 191.335 216.177

-0.62% -0.21% 1.11% -0.11%

Number Filed Number Filed Number Filed

February February February

85 68 14

71 54 13

66 42 15

28.79% 61.90% -6.67%

Thousands Thousands Thousands Thousands Thousands

February February February February February

326.16 184.16 42.10 33.89 32.65

322.76 184.54 41.01 34.49 31.65

323.34 182.09 40.89 34.19 32.27

0.87% 1.13% 2.97% -0.87% 1.17%

Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands

February February February February February February February February February February February February February February February February February February February February February February February February February February February February February February February February February February February February

308.5 41.4 267.1 14.6 0.1 14.4 12.4 13.3 13.5 0.2 8.9 58.9 5.9 33.6 6.2 9.4 19.4 6.0 2.8 6.3 4.2 14.0 24.7 39.7 28.7 26.1 5.7 16.6 11.2 86.2 16.5 26.1 8.0 43.6 25.3 3.7

306.5 35.7 270.8 15.1 0.1 15.1 12.9 14.0 6.6 0.3 3.3 61.9 6.2 35.5 6.2 9.8 20.2 6.1 3.1 6.8 4.2 14.2 24.5 39.6 28.7 26.6 6.0 16.8 11.4 85.8 16.4 26.2 8.1 43.2 24.7 3.3

309.1 41.1 268 15.5 0.2 15.5 13 14 11.6 0.4 8.3 60.6 6.2 34.1 6 9.4 20.3 5.9 3.1 7.1 4.7 14.4 24.7 38.3 27.6 27.6 6.3 17.3 11.1 84.2 16.1 25.7 7.9 42.4 24.4 3.5

-0.19% 0.73% -0.34% -5.81% -50.00% -7.10% -4.62% -5.00% 16.38% -50.00% 7.23% -2.81% -4.84% -1.47% 3.33% 0.00% -4.43% 1.69% -9.68% -11.27% -10.64% -2.78% 0.00% 3.66% 3.99% -5.43% -9.52% -4.05% 0.90% 2.38% 2.48% 1.56% 1.27% 2.83% 3.69% 5.71%

Thousands Thousands Thousands Thousands Thousands

February February February February February

361.56 201.56 46.19 37.91 37.33

360.65 202.00 45.58 37.87 37.56

356.54 197.80 44.78 38.38 36.67

1.41% 1.90% 3.15% -1.22% 1.82%

Units

www.akbizmag.com • Alaska Business Monthly • June 2010

SPONSORED

Indicator

Units

Unemployment Rate Alaska Percent Anchorage & Mat-Su Percent Fairbanks Percent Southeast Percent Gulf Coast Percent United States Percent PETROLEUM/MINING Crude Oil Production – Alaska Millions of Barrels Natural Gas Field Production – Alaska Billions of Cubic Ft. ANS West Cost Average Spot Price $ per Barrel Hughes Rig Count Alaska Active Rigs United States Active Rigs Gold Prices $ Per Troy Oz. Silver Prices $ Per Troy Oz. Zinc Prices Per Pound REAL ESTATE Anchorage Building Permit Valuations Total Millions of $ Residential Millions of $ Commercial Millions of $ Deeds of Trust Recorded Anchorage – Recording District Total Deeds Fairbanks – Recording District Total Deeds VISITOR INDUSTRY Total Air Passenger Traffic – Anchorage Thousands Total Air Passenger Traffic – Fairbanks Thousands ALASKA PERMANENT FUND Equity Millions of $ Assets Millions of $ Net Income Millions of $ Net Income – Year to Date Millions of $ Marketable Debt Securities Millions of $ Real Estate Investments Millions of $ Preferred and Common Stock Millions of $ BANKING (excludes interstate branches) Total Bank Assets – Alaska Millions of $ Cash & Balances Due Millions of $ Securities Millions of $ Net Loans and Leases Millions of $ Other Real Estate Owned Millions of $ Total Liabilities Millions of $ Total Bank Deposits – Alaska Millions of $ Noninterest-bearing deposits Millions of $ Interest- bearing deposits Millions of $ FOREIGN TRADE Value of the Dollar In Japanese Yen Yen In Canadian Dollars Canadian $ In British Pounds Pounds In European Monetary Unit Euro In Chinese Yuan Yuan

BY

PACIFIC PILE & MARINE Previous Report Period (revised)

Year Ago Period

Year Over Year Change

Period

Latest Report Period

February February February February February February

9.8 8.6 8.8 10.6 12.5 10.4

9.4 8.2 8.9 10.5 11.9 10.6

9.3 7.9 8.7 10.9 12 8.9

5.38% 8.86% 1.15% -2.75% 4.17% 16.85%

February February February

16.97 10.87 76.741

16.95 12.87 79.335

19.82 12.09 42.78

-14.37% -10.06% 79.40%

February February February February February

9 1335 1095.61 15.87 1.08

10 1410 1118.77 17.79 1.22

9 995 941.46 13.41 0.61

0.00% 34.17% 16.37% 18.34% 77.33%

February February February

30.20 8.86 21.35

5.83 3.10 2.73

32.55 5.68 26.88

-7.22% 56.05% -20.58%

February February

623 185

562 193

1237 285

-49.64% -35.09%

February February

278.62 63.79

300.25 66.39

279.69 63.11

-0.38% 1.08%

February February February February February February February

34480.6 35074.3 145.7 438.9 (10.3) 4.1 293.2

33978.5 34300.8 170.2 (705.1) 65.3 (80.7) (757.9)

26362.1 26712.9 (213.6) (1261.5) (133.2) (21.7) (1188.5)

30.80% 31.30% 168.21% 134.79% 92.27% 118.89% 124.67%

1st Q10 1st Q10 1st Q10 1st Q10 1st Q10 1st Q10 1st Q10 1st Q10 1st Q10

1,971.86 34.58 123.37 1,138.51 21.75 1,740.69 1,705.50 445.65 1,259.85

1,964.14 41.17 116.19 1,167.14 11.78 1,734.68 1,702.13 447.46 1,254.67

1,953.70 48.62 84.94 1,202.89 14.17 1,739.91 1,658.29 417.74 1,240.54

0.93% -28.89% 45.25% -5.35% 53.46% 0.04% 2.85% 6.68% 1.56%

February February February February February

90.16 1.06 0.64 0.73 6.83

91.39 1.04 0.62 0.70 6.83

92.30 1.24 0.69 0.78 6.84

-2.32% -14.91% -7.57% -6.34% -0.10%

Data compiled by University of Alaska Center for Economic Development.

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ADVERTISERS INDEX AES Employment Services Inc. . . . . . . . . . . . . 57 Alaska Air Cargo. . . . . . . . . . . . . . . . . . . . . . . . 93 Alaska Aviation Heritage Museum . . . . . . . . . . 31 Alaska Energy Authority . . . . . . . . . . . . . . . . . 126 Alaska Logistics . . . . . . . . . . . . . . . . . . . . . . . . 94 Alaska Media Directory . . . . . . . . . . . . . . . . . . 47 Alaska Native Tribal Health Consortium . . . . . . 15 Alaska Public Telecommunications. . . . . . . . . . 73 Alaska Sales and Service Fleet Elite . . . . . . . . . 2 Alaska State Chamber of Commerce. . . . . . . . 21 Alaska Sunset View Resort . . . . . . . . . . . . . . . 30 Alaska Telecom. . . . . . . . . . . . . . . . . . . . . . . . . 40 American Fast Freight Inc. . . . . . . . . . . . . . 3 & 91 American Marine/PENCO . . . . . . . . . . . . . . .8-10 Arctic Office Products. . . . . . . . . . . . . . . . . . . . 55 Arctic Slope Telephone Association . . . . . . . . 120 ASRC Energy Services . . . . . . . . . . . . . . . . . . 38 AT&T Alascom . . . . . . . . . . . . . . . . . . . . . . . . . 13 B2 Networks . . . . . . . . . . . . . . . . . . . . . . 47 & 122 Bartlett Regional Hospital. . . . . . . . . . . . . . . . . 26 Bill Z Photography . . . . . . . . . . . . . . . . . . . . . . 74 Bowhead Transport Co. LLC. . . . . . . . . . . . . . 113 Brice Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 Carlile Transportation Systems. . . . . . . . . . . . . 19 Chris Arend Photography . . . . . . . . . . . . . . . . 130 Construction Machinery Industrial LLC . . . . . 131 Corporate Council on the Environment . . . . . . 61 Crowley. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Cruz Construction Inc. . . . . . . . . . . . . . . . . . . . 83

130

Delta Leasing LLC . . . . . . . . . . . . . . . . . . . . . . 68 Dimond Center Hotel . . . . . . . . . . . . . . . . . . . . 47 Dowland-Bach Corp.. . . . . . . . . . . . . . . . . . . . . 65 Dynamic Properties-Matthew Fink . . . . . . . . . . 95 ERA Alaska . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 ERA Helicopters LLC . . . . . . . . . . . . . . . . . . . . 39 Fairweather LLC . . . . . . . . . . . . . . . . . . . . . . . 105 First National Bank Alaska . . . . . . . . . . . . . . . . . 5 Floyd and Sons Inc. . . . . . . . . . . . . . . . . . . . . . 32 GCI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Golden Valley Electric Association . . . . . . . . . 125 Great Originals Inc.. . . . . . . . . . . . . . . . . . . . . 120 Horizon Lines . . . . . . . . . . . . . . . . . . . . . . . . . . 78 Integrated Concepts & Research Corp. . . . . . . 79 Jens’ Restaurant. . . . . . . . . . . . . . . . . . . . . . . . 30 Judy Patrick Photography. . . . . . . . . . . . . . . . . 85 Juneau CVB . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Kinross Fort Knox. . . . . . . . . . . . . . . . . . . . . . . 71 Land’s End . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Lawes Project Management Office. . . . . . . . . . 31 Lynden Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 MTA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123 Muzak - Sound Tech LLC . . . . . . . . . . . . . . . . . 47 NANA Regional Corp.. . . . . . . . . . . . . . . . . . . . 69 NCB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Nenana Heating Services Inc. . . . . . . . . . . . . . 41 Northern Air Cargo . . . . . . . . . . . . . . . . . . . .52-53 Northern Reclamation Services LLC . . . . . . . . 45 NW Ironworkers Employers Association. . . . . . 65

OPTI Staffing Group. . . . . . . . . . . . . . . . . . . . . 55 Oxford Assaying & Refining Inc.. . . . . . . . . . . . 70 Pacific Alaska Freightways . . . . . . . . . . . . . . . 115 Pacific Pile & Marine. . . . . . . . . . . . . . . . . . . . 127 Parker Smith & Feek. . . . . . . . . . . . . . . . . . . . . 17 Peak Oilfield Services. . . . . . . . . . . . . . . . . . . . 40 Pen Air . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 People Mover/Share-a-Ride . . . . . . . . . . . . . . . 31 PND Engineers Inc. . . . . . . . . . . . . . . . . . . . . . 77 Port of Anchorage. . . . . . . . . . . . . . . . . . . . . . . 99 Randa’s Guide Service. . . . . . . . . . . . . . . . . . . 30 Rosie’s Delivery . . . . . . . . . . . . . . . . . . . . . . . . 47 Ryan Air . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 Scan Home. . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Seekins Ford Lincoln Mercury Fleet . . . . . . . . . . . . . . . . . . . . . . . 107 Span Alaska . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Stellar Design Inc.. . . . . . . . . . . . . . . . . . . . . . . 47 Susan Padilla Realtor . . . . . . . . . . . . . . . . . . . . 30 Susitna Energy Systems . . . . . . . . . . . . . . . . . 23 Taiga Ventures . . . . . . . . . . . . . . . . . . . . . . . . . 70 TecPro Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 The Growth Co.. . . . . . . . . . . . . . . . . . . . . . . . . 23 Tongass Substance Testing . . . . . . . . . . . . . . . 47 Totem Ocean Trailer Express . . . . . . . . . . . . . 111 Ukpeagvik Inupiat Corp. . . . . . . . . . . . . . . . . . . 51 UA Statewide Corporate Programs . . . . . . . . . 47 Washington Crane & Hoist . . . . . . . . . . . . . . . . 95 Wells Fargo. . . . . . . . . . . . . . . . . . . . . . . . . . . 132

www.akbizmag.com • Alaska Business Monthly • June 2010

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