ANVCA January 2018 Newsletter

January 2018 Newsletter

Your quarterly news & updates

C'amai! Amlertut Kiaget! The Alaska Native Village Corporation Association (ANVCA) hopes that the year is off to a positive start for all of our Members and Partners. Here is the first quarterly newsletter of 2018, where we outline key events of 2017, spotlight a couple of our Members and Partners, and share other exciting opportunities that 2018 has in store.

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A Message from the Executive Director:

As I look back on 2017 it is with a great amount of pride and gratitude, serving as the ANVCA Executive Director has truly been an honor and a privilege. It was an eventful year for us, with an all new staff and office space we have finally settled and are ready to continue our growth. I have been working hard to identify the right partner organizations for ANVCA, and we are welcoming new partners every month. We are especially thankful for our partner community. We have enjoyed spending time with our members analyzing the various opportunities that come through as the result of these growing relationships.

We have also been very fortunate to be welcoming in new village corporation members at a slow and steady pace. The ANVCA Board of Directors made every village corporation created under the Alaska Native Claims Settlement Act (ANCSA) an affiliate member, but there are key differences to being an affiliate member versus a dues-paying member. Paying members enjoy discounted event pricing, opportunities to participate in strategic committees, exclusive investment opportunities, and much more. If you are not currently a dues-paying member, you will be listed as an “affiliate” on our website HERE. Different levels of membership are offered to fit every budget, and we hope to see the affiliate list shrink more and more in the coming weeks as each of our members convert to full-paid status.

I hope to see ANVCA member CEOs, Executives, Board Members, and Elders well represented at this month’s high level briefing with Department of Interior Secretary Ryan Zinke in Washington DC January 22 being organized by the Alaska Federation of Natives. These events are crucial for our leadership as we seek to have a continued voice in any development that takes place in our home – the Arctic. Alaska has the largest concentration of indigenous people of any State, and it is not likely that any major development will happen here without the input – and ultimately the participation – of Alaska’s first people. There has already been an overwhelming response to this event, there is now a wait list for attendance. please contact AFN with any questions or concerns.

In a recent conversation with an ANVCA partner, a very talented and engaging organizational development consultant likened ANCSA corporations to the 50-year-old entrepreneur. He said there is a reason why entrepreneurs in this age group are more successful than any other age group. They have behind them many successes, and more importantly the failures from which to learn. ANVCA expects to see many more successes in the near and long-term as our human capital grows each year within the Native community. Our organization hopes to be a springboard to success for our members, a place where deal makers can meet and find common ground, and a place to celebrate mutual wins that benefit us all.

ANVCA is working hard to ensure that we are bringing you monthly Fishnet topics that are relevant and interesting to our members and partner organizations, we welcome your input and look forward to seeing you all at these events. Additionally, our Annual Business Conference will take place May 10 and 11, 2018 at the Egan Center, and will feature even more training and networking opportunities than any year before. if you are interested in submitting a presentation topic for this year's conference please visit our conference page HERE

As we brace ourselves for the next few years of potentially aggressive development in Alaska, it is critical that organizations like ANVCA remain watchful for the next best set of opportunities for our Members and Partners, both within Alaska and throughout the world. We will be reviewing and communicating to you the changing business and policy landscape and we look forward to working with our members and partners in shaping it!

Tsin'aen,

Hallie L. Bissett

ANVCA Executive Director

We are especially grateful to our Moose and Salmon level partners!

ANVCA would not exist without your support

December Fishnet: State of the State Address with Gov. Walker

Last month, ANVCA staff, Members and Partners, and others in the business community had the chance to sit down with Governor Walker. At the luncheon, Walker discussed the future of the Alaskan economy, priorities in 2018, as well as future opportunities for ANCSA corporations.

Click here for a short overview on the topics he discussed at the luncheon.

Upcoming Event! January Fishnet: State of the State Budget Presentation with Pat Pitney, Director of the State Office of Management and Budget

Join us over lunch at our next Fishnet Gathering, where we will hear from Pat Pitney, Director of the State of Alaska Office of Management and Budget Contracts (OMB), on January 26.

Ms. Pitney will go over the $10.65 Billion 2019 State Fiscal Budget with our Members and Partner organizations.

This year's budget contains some real zingers!

Governor Walker has introduced the Alaska Economic Recovery Act, the first of a three-phase plan to promote job growth and address the state's backlog of deferred maintenance bringing an additional $1.4 billion in economic activity to the state over the next three years.

The Governor has proposed a 1.5% wage earners income tax that would sunset in 2 1/2 years to help close the budget gap.

The Alaska Marine Highway is scheduled to run out of funding in March or April 2018!

Investment Opportunities Made Available to Paid Members

Within the past few months, ANVCA has been able to network with select organizations, and has since chosen to make available investment opportunities for our Members.

We are pleased to announce that in 2018, a portal will be constructed and made available only to paid Members that will include these investment opportunities as we make them available to our Members.

In the meantime, click here to learn about our new Partners and the opportunities they provide:

Legislative Priorities of Interest in 2018

For years, ANVCA advocated on the issue of contaminated lands, and this year we were able to see some progress in Congress through the introduction of certain bills in the Senate and the House. ANVCA is watching these bills - H.R. 3017 and S. 822 - as we see them as potential vehicles for language that would lift legal liability for ANCs that received contaminated sites via ANCSA. At the state level, we're keeping track of S.B. 64, a bill that could impact land use covenants and could potentially change the nature of environmental conservation in our state. We will also be taking a hard look at the Stand for Salmon Ballot Initiative, as it has garnered enough signatures to make it onto the ballot and could be potentially detrimental to future developments on Native lands, in addition to other priorities. Members, let us know what else is important to you at the state or federal level.

For your reference, here is a full list of other bills that we believe ANCs should pay attention to in the 115th Congress:

H.R. 3017, the House version of S. 822, legislative vehicles to address contaminated lands
H.R. 1867 and S. 785, companion bills to address land allotments for Alaska Native veterans
S. 1149, pushing for the repeal of a provision that places a cap on the timber exports permitted to Kake Tribal Corporation
S. 1698 and H.R. 3524, improving the Alaska Native Claims Settlement Trust
S. 1491, allowing Southeast Native communities to organize into urban corporations
S. 1460, which could carry implications for ANCs in the energy sector
S. 1483, concerning land exchanges with Shee Atika Corporation
S. 49, concerning oil and gas production and leases in Alaska
S. 1494, regarding ANCSA dividend exclusions
S. 1490, concerning land conveyances to the Nagamut Group
S. 1495, fractional shares for ANCs
H.R. 1693, improving procurement for small businesses
S. 1486, relating to sand and gravel access for Barrow

Consider joining us on our 2018 Juneau and D.C. Legislative Fly-Ins! Request a copy of the 2017 D.C. Fly-In report here and let us know that you're interested in joining us.

Thank you to our Member Organizations!

Member Spotlight: Cape Fox Corporation

Cape Fox Corporation (CFC) was recently named a 2017 Top 49er in Alaska Business Monthly. For anyone wondering what is leading to their success, they may look to their recent ventures in the tourism industry, as well as additional customer growth in federal contracting.

CFC operates their Southeast Alaskan tourism industry out of Saxman and Ketchikan, Alaska, where their most recent investments, including a major renovation planned for Cape Fox Lodge next year and new merchandising for their retail stores, are expected to grow additional revenues and customers in 2018 and beyond.

Additionally, they operate a Federal Government contracting group out of the Washington, D.C. Metro area, where they primarily engage in healthcare services, occupational health and safety and strategic HR support, systems integration for UAVs, military logistics, family counseling services, among many others. In fact, their government contracting sector has growing capabilities in medical staffing, systems integration, information technology, and logistics, which is putting them in the market competing for larger Federal contracts. CFC’s expanded capabilities are leading to additional contract growth and they are expected to close around $75M in new business before the end of 2017.

Their overall business strategy? Focusing on customer satisfaction as their metric of success, and the business management team working closely with the Board of Directors to oversee these strategic business plans, ensuring CFC’s capital growth for years to come.

Congratulations!

Member Spotlight: Sitnasuak Native Corporation

Sitnasuak has been involved in making waves of positive change! Whether it is contributing directly to natural disaster relief efforts or grooming shareholders for leadership using Inupiaq teachings, they have been directly providing service to others around them. Way to live our values!

Thank you to our Partner Organizations!

A Message from our Partner: Alaska Permanent Capital Management

Locally Operated Investment Advising

"Alaska Permanent Capital Management (APCM) is an SEC Registered Investment Advisor owned and operated by Alaskans. We have been serving Alaska organizations for over 25 years and maintain long-term relationships with a diverse client base that includes: Alaska Native Corporations, endowments and foundations, and state and local governments. We assist clients with fulfilling their fiduciary obligations by following a prudent, low fee and transparent investment process."

Click here to read more.

A Message from our Partner: Arent Fox, LLC

Contaminated Lands: Cleaning Up and Moving Forward

"Since 1971, approximately 44 million acres of land have been conveyed to Alaska Native Corporations (“ANCs”) under the Alaska Native Claims Settlement Act (“ANCSA”). Based on 2016 data from the U.S. Department of the Interior, 920 contaminated sites were conveyed to ANCs under ANCSA. Of those 920 sites, 328 allegedly have been cleaned up, 338 allegedly require additional cleanup, 242 allegedly have sufficient land use controls to prevent human exposure, and 12 allegedly have no confirmed release of contaminants.These contaminated lands were transferred to ANCs from, among others, the U.S. Department of Defense, the Federal Aviation Administration, other Federal Agencies, and the State of Alaska. These original owners and operators retain some responsibility for addressing contamination that occurred during their ownership or operation of the sites."

Read more from our advisor, Jeffrey Makin.

A Message from our Partner: QuickStrategy

Advice on Growing and Sustaining Your Business

"Most acquirers start an acquisition by listening to a financial advisor or broker about a “deal”. They will tout the financial opportunity, i.e. only a 4 times multiple of earnings that will yield a 20% return on investment. This “deal” based approach to acquisitions will often lead to repeated failure and many surprises after the acquisition.

When you build a long term Strategic Acquisitions program you focus on markets that represent real long-term opportunity for growth in sales, profit and employment where you understand the customers value system. Business acquisition opportunities are defined by the markets they serve. For example, if you target businesses that are experiencing declining customer demand, profit margins will fall as competitors scramble to hold market share. If you target markets with growing demand profit margins are more likely to be stable or grow over time. One of the best indicators for healthy markets is the Gross Profit margin from operations. (Gross Profit is that amount left when you subtract product manufacturing cost from revenue, Gross Profit Margin is Gross Profit divided by revenue). I suggest that Gross Profit Margins should be a minimum of 30% in healthy market, less than that is an indication of a highly competitive market or commodity market. High Gross Margin (over 50%) Markets are usually an indication that competitors can differentiate their product to appeal to customers who are willing to pay a premium for that unique product or service offering."

Click here to read more about strategic advising from Bruce Robinson, Chairman and CEO of Quick Strategy Corporation, and co-author of "Strategic Acquisitions: A Guide to Growing and Enhancing the Value of your Business."

A Message from our Partner: Outlook Law, LLC

"The SBA’s Presumed Loss Rule has now been in play for about four and half years, and in a 2016 enforcement action someone went to jail over it.

As we head into the New Year, it bears remembering some of the regulations that are still in play within the SBA that carry serious consequences. With that in mind, here is an overview of the Presumed Loss Rule as well as the 'Safe Harbors' contained within that regulation."