Vol. 1, No. 5• October 20, 2006
A fresh perspective
Helvi Sandvik
Every year, NANA conducts a series of informal shareholder meetings in the villages of our NANA region, at Red Dog Mine and in Anchorage, Seattle, and Fairbanks. At these meetings shareholders learn about their company’s progress, the previous year’s profits, the amount of the dividend, and nominate shareholders to run for the NANA Board of Directors. This year the meetings began in Kotzebue on October 9. The board and staff then split into two teams and traveled to the region’s 10 remote villages over the next four days.
The first group, led by NRC Vice Chairman Roland Booth and NRC President Marie Greene, started with the upper Kobuk River villages of Kobuk, Shungnak and Ambler and then visited Kiana, and Selawik. The second team, led by NRC Chairman Don Sheldon and me, took the “coastal route,” visiting Kivalina, Noatak, Deering, Buckland, and Noorvik. Stan Fleming, President of NANA Contracting Services was in the coastal group and kept a diary to record his impression of the meetings. We tease Stan because he is known for his long memos, but after many years of attending these meetings myself, I appreciate the chance to see them through new eyes. I encourage you to read Stan’s diary to help link the work we do every day to the lives of our shareholders.
Stan Fleming, October 10-13, 2006A new way of thinking
It’s hard to put into words the appreciation I have for all of NANA especially after the village trips from last week. The informal shareholder meetings really put everything we are doing in such great perspective.
I’m excited about this opportunity to travel with the team to some of the villages and listen and learn as NRC Chairman Don Sheldon, NDC President Helvi Sandvik and others deliver an update to our owners about NANA. I want to pass on what I sense and see so you can share in the awe that I know I will experience, hopefully in a way that is fun to read and revealing. Maybe together we can experience the magnificence of the region and the incredible values of our shareholders.
Day 1: Heading into the region - October 10, 2006
Kotzebue
I landed in Kotzebue at 7:30 in the morning and immediately set out with my bags to walk to the NANA building. I’d been in Kotzebue a couple times before, so I was feeling pretty confident about knowing how to get around. The myth is that guys don’t ask directions: I was about to be living proof that this was indeed the truth. After wandering around for 15 minutes, I asked someone where the NRC building was. It was only 5 minutes from the airport and had a big NANA on it, but I couldn’t see it in the dark! Someone kindly pointed me to the building and I walked towards it only to see that all the lights were out and no cars were in the parking lot. I turned back around, returned to the terminal, and got a cab to take me to the Nullagvik Hotel. I arrived at the hotel at 8:30 and NDC Chairman Luke Sampson, NRC Vice Chairman Roland Booth and NRC/NDC Board Member Lester Hadley were hanging out in the lobby drinking coffee. I quickly checked in and came back down to the lobby and Helvi invited me in for breakfast. I got reindeer sausage and eggs…I think I could eat that every single day and never get tired of it.
Kivalina
At 2:00 p.m., two different teams converged on Bering Air in Kotzebue for charters to very different locations. One team led by Don and Helvi would head to the coastal villages of Kivalina and Noatak while the other team led by Roland, Marie, and Luke would head to Kobuk and Shungnak. I was fortunate to get on the coastal village swing—five villages that I’d
never visited. As we came in for a close-in pass prior to landing, I was amazed
at the new sea wall that had been installed in just the past couple months. The
seawall effort cost more than $3 million and was an attempt to slow down the
torrid pace of erosion caused by the tremendous arctic swells that constantly
ram into Kivalina. Even while we stood at the seawall, the waves were crashing
into the new retaining wall, spilling over at times, and in some areas already
starting to erode the new wall. One other thing that caught my eye on the walk
in from the landing strip was the Kivalina cemetery, located right next to
the runway and between the waves of the ocean and the waters of the inland
waterways. As I walked, I couldn’t help but think how hard it would be
to move the village inland … not just a physical move but also the mental
move. As I looked across the horizon inland, all I saw was more water. To get
to a high ground that would support the village safely, it had to be two or
three miles to the nearest point that could sustain the village and protect
them from the water.
We met at the school of every village, and when we got into the school at Kivalina and began to set up, Bert Adams, a past board member and early leader of NANA strolled up with the handouts for the FY06 performance. He leaned on the bleachers and looked at the balance sheet and the income statement. He then looked over at me and said, “This was a good year”. I asked him what he focused on and he said, “Operating income and shareholder equity” …he then repeated, “the growing value is good.”
An audience member asked me why Congress was attacking the 8(a) program. For anyone who may think that our shareholders are not be up to speed on the issues, the local man convinced me that they are tracking the issues closely with us and are concerned based on what they are hearing! I gave a quick briefing on the attacks and our counter, and he was very appreciative of what NANA is doing in this area.
Dood Lincoln and Lester Hadley help with door prizes.
The room quickly filled up. Everyone registered on the way in and received a raffle ticket for cash and prizes; adults and children got the tickets. I was surprised in all of the villages by the number of kids,huge numbers of kids, up to 40-45% in some villages. Each informal shareholder presentation started with a prayer from someone in the village. We said a prayer, and the presentations began.
Don led the presentation with an overview of NRC and the board committees that support the activities of NANA. On his second slide, he announced the $7 per share dividend, and in some villages they clapped, others they smiled broadly, and in every location they were very happy about the job NANA is doing to provide much needed dividends. Don was followed by an NDC report delivered by NRC/NDC Board Member Dood Lincoln and they discussed the seven-member NDC board and focus on business. Helvi then gave her annual report, talking about the growth, breadth, and the global focus of NANA. The tone of the questions and the comments were incredibly positive. Here are some of the key data points that were touched on throughout the briefings:
| FY - '05 | FY - '06 | |
| Dividends | $3.80 / share | $7.00 /share |
| Shareholder Wages | $27m | $31m |
| Shareholder Employment | 770 | 810 |
| Revenues | $527m | $810m |
| Net Income | $10.8m | $16m |
| Scholarships | (last year) $1,500 / semester |
(this year) $2,000 / semester |
Then, Don and Helvi got to the part that most of the shareholders—and for sure all of the kids—were waiting for … the door prizes, which would be 10 $100 winners, and four winners of reindeer meet. The quietest time of every village visit was when the numbers were being called! Even the prayer time wasn’t that quiet! After giving out the door prizes, we said a closing prayer, packed up quickly and headed straight to the airplane. We still had Noatak to get to this first day of the coastal village visits.
Noatak
It was a short flight to Noatak, and NRC/NDC Board member Robbie Kirk met us
at the air strip. He took charge of getting us into the school, getting us
set up and giving us a quick bit to eat. I was starving by this time, and at
the school cafeteria NRC Resource Specialist Alice Adams had a pot of salmon
and oyster chowder waiting for us. Oh my gosh was it good! I wolfed down a
quick bowl and went back out to the gym to help with the set up. Noatak was
a bigger village, so it took quite a bit longer to get everyone registered
and into the bleachers.
There was one significant change in Noatak—one of the board seats were up, so the village got to nominate candidates to run against the incumbent, Roland Booth, Sr. There was a bunch of lively chatter, and Joe Luther was chosen through secret ballot from four nominees to run against Roland. To be a candidate, you have to be at least 18 years of age and you have to live in the village. You also have to be 18 to vote. This was a great experience in representative democracy, which is really what NRC is all about.
I noticed another thing during the presentations in Noatak … the NRC report was being given in the Iñupiaq language, and while Don or NRC Vice President of Shareholder Development Gladys Pungowiyi was giving the NRC information in Iñupiaq, the kids would just tune out. The elders and the older village members would listen attentively and some would be asking for translations, but the kids seemed to pay no attention. It was obvious that NANA has a great challenge to preserve the Native language and ensure that the next generation has a respect for, and understanding of, the language. Back on the plane, I told Gladys I understood every word she said! She just grinned. I have some work to do now to so that I can understand the language and show my respect for that important part of the culture.
After the closing prayer, we headed back to the plane and then back to Kotzebue for the evening. The team that went up river spent the night in Shungnak, but our team billeted back at the Nullagvik Hotel.
Day2: More village meetings - October 11, 2006
Deering
At 3:00 p.m. we met again at Bering Air for the trip to Deering—Mamie Karmun’s hometown! Deering is a very small village of only 180, but they had the biggest airstrip with dual crossing runways. We caught rides into the village. It was the smallest crowd we would brief, with only about 60 people showing up, but as with all the villages, the appreciation for NANA and the thanks were very real. Once again, kids were a huge part of the meeting, and Lester Hadley talked to the kids about how important was for them to study so they could one day replace him as a board member of NRC. Lester has such a great way of communicating with anybody at any age.
Stan Fleming and Private First Class Sonny Paul Hadley.
Buckland
Just as we arrived on the gravel landing strip in Buckland, Private First Class “Sonny Paul” Hadley was saying his goodbyes before heading to Iraq. His Alaska Army Guard unit was now being deployed. Lester was so proud as he took pictures of Sonny Paul with all the visitors, and we all told Sonny Paul how proud we were of those serving today and how we will keep him in our prayers. Sonny Paul completed the Camp Shelby training from Akima back in July, so we knew he was going to be deployed, but we didn’t know when. What an emotional moment as he said good bye to his wife and family and boarded the plane.
With that preamble to the Buckland meeting, we knew Buckland would be special. Buckland was another of the villages where a board seat was up for vote Lester’s. Even as Don began talking about the board nominations, Nathan Hadley stood up and said, “I move to close the nominations and ask for unanimous consent.” It was seconded by many. Then another person stood up and said, “If something ain’t broken, don’t fix it.” Lester was moved by his village standing up and to say that they wouldn’t have anyone run against him. What an incredible event in Buckland. We had to hurry out after the meeting because our pilot was pushing up against his 14-hour limit. We had sausage and cheese on the way back to Kotzebue after another very moving day of meetings.
Day 3: The last stop - October 12, 2006
Noorvik
The final day of our village meetings took us to Noorvik, Don’s hometown. Noorvik has a beautiful school and banners that proudly boast State championships in basketball for like nine out of 10 years! It is a big community with a beautiful school. The gym was so big though, there was no good place to view the presentation. We ended up pulling volleyball posts out of the closets and hanging tablecloths taped together across the poles to get a screen. Don’s seat is up for election this year and the community nominated Elmer Armstrong, Jr. to run against him. Don did a wonderful job presenting NANA’s story to his home village. You could sense the pride and respect that each of them carried into each presentation, and you could tell how humble each of them are. They are really honored to be representing their villages and to be serving NANA in their respective capacities.
As we packed up and left Noorvik, I couldn’t help but think how privileged each of us are to be working for such an incredible organization. That $700 dividend check that most of the folks in the room will receive means so much to them and they were all so grateful to NANA for the work being done to increase that amount in the future. It was such a great blessing to be part of this trip. I hope you get a sense for the awe that I felt as we visited these five villages. In the coming years, we are going to push our companies to have more meetings and to create more reasons to visit all of the villages in the NANA region. I can’t think of a better way for all of us to experience that same awe than to bring our business to the village just like NRC and NDC did this past week.
People
Stan Fleming, President, NANA Contracting Services
Stan Fleming
In his role as President of NANA Contracting Services, Stan Fleming and a five-member team work closely with our four government contracting management companies: Akima, Inc.; Akmaaq, LLC; Qivliq, LLC; and KPSG, LLC. Stan has more than 24 years experience in information technology operations and business development, serving in senior executive roles in private, venture-backed companies, government-focused integration companies, and government organizations including the White House Communications Agency and the National Reconnaissance Office. Stan joined the NANA Development Corporation family as Chief Executive Officer of TKC Communications in 2003 and assumed his current position in 2005.
Prior to joining NANA Development Corporation, Stan was the Vice President of Government Operations in a Silicon Valley start up, which delivered the most advanced, high-speed packet inspection and modification tool ever built. Prior to that, Stan built a consulting company focused on organizational assessment, information technology strategy, and network design and implementation, with a primary focus on Tier 1 international telecom providers and carriers. He also provided strategic consulting to growth companies in the Netherlands, Ireland, Great Britain, and the United States. Stan recently retired from the United States Air Force Reserve after a 22-year military career. He has a BSEE from the United States Air Force Academy and a MS in Systems Management from the University of Southern California.
Anchorage, AK Alaska Testlab pours it on
From the rooftop of the ASRC building, crews can be seen accomplishing the largest single concrete pour in Anchorage this year.
Alaska Testlab (ATL) technicians conduct compressive strength testing on concrete cylinders to determine compliance with contract documents. ATL has six mobile testing laboratories on-call that can be mobilized to support construction materials testing and inspection anywhere within or outside Alaska.
Alaska Testlab, a division of DOWL Engineers, recently completed the reinforced concrete mat foundation for the 14-story JL Properties office tower being built by Davis Constructors behind the Arctic Slope Regional Corporation complex in Anchorage.
“The 12-hour placement involved more than 100 people who rehearsed every aspect of the pour to anticipate anything that could go wrong,” Steve Schwicht, Alaska Testlab General Manager said.
The large concrete mat foundation (150' x 150') is six feet thick and required 4,500 cubic yards of concrete to construct—about 450 truckloads and more than 20 million pounds.
“It was the biggest single concrete placement in Anchorage for the entire year,” Schwicht added. “From start to finish, everything needed to go like clockwork—and it did.”
The Alaska Testlab (ATL) crew included senior inspectors Steve Schroeder and Rick Aro who managed the job, and technicians John Rego and Ken Civian who tested for air, slump, and water content in the concrete mix every 20 minutes throughout the day.
Compressive strength testing on concrete cylinders is required to determine compliance with contract documents. ATL has six mobile testing laboratories on-call that can be mobilized to support construction materials testing and inspection anywhere within or outside Alaska.
Construction will resume in early March, when Alaska Testlab will manage the special inspections of the structural steel frame including bolting, welding, and fireproofing and concrete floor placement.