ANVCA Summer 2019 Newsletter

ANVCA promotes the Success of our Village Corporations and Protection of our Native Lands.

Your Summer 2019 Updates from ANVCA

Executive Director Message

I hope you were all able to figure out creative ways to stay cool these past few weeks, I know I spent hours floating in the lake enjoying the warmth while it lasts. The rain is welcome reprieve from what has proven to be one of the hottest summers in recorded Alaska history! This has also been one of the most divisive and politically charged legislative sessions, both at the State and Federal level. Alaska Native Village Corporation Association has been watching and at times even weighing in when it warranted. However, we do try to limit our involvement in public policy and budgetary debates, and we do not endorse political candidates. ANVCA tries to focus our energy and expend our political capital on issues that have universal impacts on our membership and actively support our mission to develop sustainable Alaska Native Village Corporations.. We encourage all of our membership to voice your perspective whenever it suits you, in written form or by giving public testimony either as an individual resident, or as an organization. There are some excellent materials available if you need help, contact Alaska Federation of Natives for sample templates and examples of what other Native organizations have done. In addition, we shared with you last week one example of a corporate public statement policy that you can use to develop your own in-house policy. This document is available to our ANVCA PAID members, and is housed in our "members-only" portal of our website. You will also find all of our past presentations from annual meetings, fishnets, board code of conduct policy templates, all kinds of stuff! If you have not received your access invite for the site and are a paying member, just contact us at [email protected] we will be adding new best practices templates every month. A special thank you to Eyak Corp. for getting our best practices templates off to a good start! We have had a great year so far, closing out another successful Annual Meeting and Business Conference in May, and continuing our Fishnet training series each month. I am happy to report that we will also begin filming our monthly fishnet sessions and make them available to all PAID village members in our members only portal on our newly remodeled website www.anvca.biz As we prepare for this upcoming DC Fly-in, we are anticipating our visit will take place just after the 2-year budget caps have been established, which is going to be a great time for us to advocate on funding for programs that are important to ANCs as the House and Senate start to consider budget appropriations. We hope to increase funding for clean-up on Native Lands through the NALEMP program, as well as ensure that grants are available within the EPA Brownfields program. This will allow us to continue our work to clean up contaminated sites in rural Alaska and return them to subsistence use. For those lands that cannot be properly cleaned, ANVCA will seek a solution to "swap" contaminated acreage for economically viable property. We will also seek increased funding opportunities for energy and infrastructure projects in rural Alaska as well as investment opportunities in the public infrastructure arena Nationwide for ANCs.

Visit our NEW Website!

Legislative Alert

SBA Reauthorization Bill Threatens Indigenous Contracting There have been some alarming developments recently displayed in the Small Business Administration Reauthorization Act introduced - then subsequently pulled - by Chairman of Senate Committee on Small Business Entrepreneurship Marco Rubio (R, Florida). The language included in Chairman Rubio's bill was very similar to that proposed in HR. 190 and S. 673 , each which contained certain allowances for individually owned entities that would bring those types of entities into the same contracting space as Native Contractors without also providing the same type of increase in opportunity (creating parity) for our members. ANVCA opposed this language and traveled to DC to take part in our partner organization Native American Contractors Association (NACA) Summit to educate legislators and staff about the vast differences between an ANC and other individually owned contractors. Essentially, any other contractor in the program is likely to represent only one family, even sometimes just one person. While Native Corporations benefit hundreds if not thousands of Indigenous shareholders, often originating in locations where there is no economy to speak of, this is true too, for our Indigenous brothers and sisters in the lower 48 who live on reservations. ANVCA views Indigenous contracting as part of an ongoing business relationship between the United States Federal Government and Tribal Citizens (and Native Corporations), established via various Treaties as well as the Alaska Native Claims Settlement Act. We are a separate political status, not to be confused with "minority" status. To be clear, ANVCA and NACA and other tribal organizations do not oppose creating new opportunities for small businesses, we encourage the Federal Government to contract with those entities that are best suited for fulfilling their needs, and we encourage them to continue to find ways to better achieve their small business goals. However, those shaping language that would increase contract thresholds to benefit individual companies must recognize and balance the fact that Native Community-Owned entities have tens, to hundreds, to thousands of beneficiaries that count on economic returns from the same contracting space. Native Corporations provide job opportunities, scholarships, internships, dividends, and even burial assistance to their hundreds if not thousands of Native Shareholders many of whom live in remote locations only accessible by plane or boat. On Average, 85 percent or more of the Net Income from ANCs are returned to the community. Many organizations even provide significant funding to non-profit organizations irrespective of whether they directly benefit the Native population or not. What is known as the "SBA Reauthorization and Improvement Act of 2019" as introduced by Chairman Rubio, directly impacts Native contractors negatively.   Specifically: Sec. 704 - the “Elimination of the Inclusion of Option Years in the Award Price for Contracts.” Current law caps Individually Owned firms in the 8(a) program like minority owned, women owned, and service disabled veterans at $4 million for civil contracts and $7 million for industrial or manufacturing contracts. The SBA Reauthorization proposes to raise these caps to $8 million and $10 million respectively.  The language increases caps for HUBZone, DSVOB, WOSB to $4M to $8M per year for Non-Manufacturing and from $7M to $10M per year for Manufacturing contracts from sole source funding. Sec. 703 also contains language for the “elimination of option years in the award price for contracts.”   By eliminating option years in award price for contracts, individually owned firms would be able to compete for sole source contracts 5x the cap amounts of $8 and $10 million, and be able to receive $40 and $50 million contracts.   This will allow individually owned firms to operate in the same space as Tribes, Alaska Native Corporations, and Native Hawaiian Organizations.   Native Contractors would also be disadvantaged in contracting above the $22 million threshold outside of DoD contracting, because individually owned firms would not be subject to a $ 22 million cap requiring Justification and Authorization (J&A) at the Secretary level like an ANC is currently. The SBA would therefore have less incentive to go through strict J & A process for Native Contractors when they could give these contracts to other participants. Additionally, this legislation as written allowed for a venture capitalist to own 50% of small business, a huge departure from the standard 51% minority or disadvantaged entity ownership requirement.     Read the full proposed bill HERE   While the bill was pulled indefinitely, we believe we need to educate now more than ever on what makes Native Contractors unique, and even begin to talk about establishing a program that is based on political, status rather than minority status.

ANVCA Board Passes Resolutions of Support for Donlin Project and Alaska Gasline Development Corporation The ANVCA Board recently passed two resolutions of support for two very different but meaningful projects in Alaska.

ANVCA supports the Donlin Mine, as does Calista leadership, the Regional Corporation and subsurface owner. Also in support is the Village Corporation The Kuskokwim Corporation (TKC), which consists of 10 merged village corporations on the surface area of where the mine could potentially be developed. If developed, the revenue from the mine would be shareable with the other regions and village corporations as well as at-large shareholders per 7(i)/7(j) provisions of ANCSA. Calista and TKC have carefully evaluated this opportunity and have held over 570 public meetings and continue to hold meaningful conversations regarding the safe development of the resource in the area. READ THE FULL RESOLUTION

Alaskans have long awaited an Alaska Natural Gas project that would deliver reliable resources in cleaner mediums to Asian, Canadian, and United States customers. A project of this scale would no doubt be one of the largest scale construction projects on the planet, and would mean a boon of economic activity for the State of Alaska in desperate need of a construction-sector renaissance. ANVCA feels that the impact for our members would be great, and would result in lower energy costs in the Fairbanks and surrounding village areas where energy costs can be debilitating. Critical infrastructure is needed in our State to provide both the individual and the private enterprise the ability to flourish. ANVCA hopes to continue to see this project advance, as permitting and EIS statement work continues, and we will look forward to helping AGDC connect with the right Village Leaders in the future. READ THE FULL RESOLUTION Want to provide public comment on this project? CLICK HERE to learn how UPCOMING PUBLIC COMMENT HEARINGS

ANVCA Board Vacancies ANVCA board of directors is seeking two additional board members to fill vacancies left after recent Village CEO resignations. These seats Will be ANVCA board appointed and will retain office through 2020, at which time the seats will be open for regular election at our annual meeting. One of the open seats will have a three year term following the election, the other will have a two-year term. If you are interested in joining the ANVCA Board, please submit a letter of interest and resume to Hallie Bissett at [email protected] no later than  September 5, 2019 . The ANVCA board will review candidates and appoint a new board member at its next regularly scheduled board meeting on October 3 .  Qualifications:  The interested individual  must  be the President, Board Chair or Chief Executive Officer of a current  PAID Member  Village Corporation. We have recently changed our bylaws to allow for senior level executives to act as an alternate for some of the board meetings to better accommodate our executive's busy schedules.  For further information, determination of current membership status, copy of ANVCA bylaws or any questions please review the  website  I look forward to receiving questions and your letters of interest.

Thank you to Our Denali Village Corporation Members!

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Have you thought about joining us on our 2019 D.C. Fly-In, Sept. 16-20, 2019?

Wednesday  September 18, 2019 5:30pm The Observatory at America's Square - Rooftop 300 New Jersey Avenue Washington, D.C. 20001   Come celebrate the importance of Alaska Wild Salmon to sports, commercial, and subsistence fishermen; restaurateurs and seafood processors; and foodies across the globe! Come sample the many ways to prepare Alaska's world famous salmon as we celebrate this precious natural resource! RSVP

Here's what you need to know about one of our most anticipated and well-attended annual events: All travel costs including airfare, hotel, and ground transportation, as well as some meals are paid for by the individual participant 40+ meetings are going to take place on Capitol Hill and all around Washington, D.C.; all attendees on ANVCA's Fly-In are invited to full group meetings with the Alaska delegation You will be assigned a team focused on one of four Federal advocacy topics; we'll do our best to accommodate requests to place you on the team of your choosing Schedules are flexible so one can schedule and participate in your own meetings, too - however, we request that you work with your team to ensure that all assigned meetings are covered by at least one person There will be an orientation and training coming up in late August, shortly before the Fly-In. Request last year's training packet to review for this year's training and to prepare for important strategy sessions Outside of 40+ scheduled meetings around the DC area, we host a cosponsored reception on Capitol Hill that we typically coordinate with AFN, ARA, NACA, NCAI, and NCAIED Fly-In Schedule September 15  - Travel Day September 16  - Orientation Government Briefings September 17  - Hill meetings September 18  - Hill meetings September 19  - Travel day   Register Now! Generously sponsored by

Upcoming ANVCA Events

July Fishnet (really in early August) - Grants are now taxable - What you need to know (teleconference/webex) August 8, 2019 T he 2017 tax reform act took away the option to treat grants as non-taxable “contributions to capital” under IRC Section 118. Under pre tax reform grants could be treated as contributions of capital instead of taxable income. Under tax reform the term “contributions of capital” does not include (1) any contribution in aid of construction or any other contribution as a customer or potential customer, and (2) any contribution by any governmental entity or civic group. This is effective for “contributions” made after December 22, 2017, by a governmental entity pursuant to a master development plan that has been approved prior to such date by a governmental entity.   Since these grants will be taxable income there will be tax basis and once the projects are completed and placed into service they will be eligible for depreciation for tax purposes. Our partner BDO will be on the line as a subject matter expert, to explain the changes but more importantly to take your questions regarding specific instances and projects you may be working on as well as possible solutions. Tsin'aen BDO! REGISTER   August Fishnet - The Need for Portfolio Monitoring on Demand August 29, 2019 For more than two decades, Professor Hugh Cohen has lectured Goizueta Business School at Emory University, one of the Top Business Schools in the Country. Additionally, he has been hired as an expert witness multiple times by the FBI, the SEC, and US Attorney's Office in cases of Investment Fraud. Cohen will present a high level overview of ways to spot and prevent financial fraud BEFORE losses to the investor occurs. In addition to the fishnet, Professor Cohen will meet with our paid members and partner organizations one-on-one on a first come, first serve basis while he is in town August 28 - September 4. If your organization would like to request a one-on-one session please contact Hallie Bissett to schedule an initial introduction to your board or management team. For more information Check out the brochure REGISTER September ANVCA DC Fly-In - Annual Fly-In (see above article) Fly In Schedule September 15  - Travel Day September 16  - Orientation Government Briefings September 17  - Hill meetings September 18  - Hill meetings September 19  - Travel day   REGISTER September Fishnet - JL Properties Real Estate Investing Join Real estate investing experts Mark Kroloff and John Rubini of JL Properties, a new ANVCA partner in 2019 to learn the basics of real estate investing. ANVCA is honored to have Mr. Rubini and Mr. Kroloff as our guests, they really are some of the best in the business, so don't miss this opportunity to hear about what to do, and what not to do, when evaluating a real estate deal! Watch for further announcements around this event. DETAILS TBD Alaska Federation of Natives Village Corporation Caucus - Fairbanks, Alaska OCTOBER 17 10:00 - 12:00 Northern Lights Room 

Let's work together to make sure our people are counted! With preparation activities having begun in 2018, the 2020 Census is now kicking into high gear, with the establishment of Complete Count Committees and the opening of six regional offices and 288 area offices. The Alaska office is working diligently to ensure that all Alaskans, especially in rural Native communities, are prepared to participate in the 2020 Census to the fullest extent possible. Read more here. Interested in working for the Census in your community?

Information for Tribal Liaison training sessions What exactly is a Complete Count Committee? Draft resolution of support for Complete Count Committees

Alaska Federation of Natives Takes Official Position on State Budget Cuts The Alaska Federation of Natives is charged under our Articles of Incorporation with promoting ‘good government.’ This means different things to different Alaskans. To the Native leaders who founded our organization, however, it meant ‘reminding those who govern and those who are governed of their joint and mutual responsibilities.’   AFN discharged this duty by sending the Alaska Legislature a letter and resolution affirming our support of the operating budget it passed on June 10—prior to the Governor’s June 28 vetoes of nearly half a billion dollars. Our position is rooted in the Legislature’s constitutional responsibilities to Alaskans.    Article VII of Alaska’s constitution obligates the Legislature to provide for the public education (including a state university system), public health, and public welfare of Alaskans. Upholding these responsibilities should be the Legislature’s sole concern this week. Focusing on the location of the second special session or the amount of the Permanent Fund dividend, as various House and Senate members continue to do, absolves individual lawmakers of their Article VII constitutional responsibilities to Alaskans.   For this reason, AFN is calling on the Legislature to reinstate the operating budget it passed June 10.  If you need sample resolutions, e-mail language, or talking points please contact AFN Staff.

MEMBER NEWS

Larry Barsukoff, JD / MBA, joins SMNC Properties (SMP), LLC as General Manager. Mr. Barsukoff brings more than fifteen years of management and legal experience including construction management, resource extraction, business operations, freight operations, human resource management, contract negotiations, business development, and risk mitigation. SMP offices are in: St. Mary’s, Alaska Anchorage, Alaska Fairbanks, Alaska Honolulu, Hawaii Larry brings passion and energy that is fueled by Alaska’s beautiful environment. Larry brings a practical, straightforward, yet easy-going manner to work. He is conscious of the cultural needs of clients while maintaining the highest standards of professionalism and ethics. SMP has successfully added contracts, equipment, and personnel to our team. Highlighted projects include a roof repair design-build project in Maui, Hawaii on the summit of the 10,000- foot Mount Haleakala! The design is near completion and work will begin on site in July of 2019. Other exciting projects include a five-year services contract in Fairbanks, Alaska and a multi- year contract with the Department of Fish and Game working on the Andreafski River Weir, right in our backyard! These additional contracts have allowed SMP to increase our personnel and provide increased job opportunities to more residents of St. Mary’s as well as shareholders in other areas of the State. In all, SMNC Properties is moving full steam ahead and looking towards a very bright 2019 construction season. From all of us at SMNC Properties, have a safe and bountiful fishing

St Mary's is Hiring! Imaq Technology LLC. is seeking an experienced General Manager SEE THE JOB DESCRIPTION and apply today!

Botulism and Our Traditional Foods Subsistence foods are very important to our culture, identity and healthy diet. It is important for the foods to be safe to eat and to honor traditional methods of preservation and preparation. Using modern conveniences, such as plastic buckets and/or bags, can produce botulism, which is one of the most dangerous poisons on Earth. Botulism can still occur when using traditional methods – or any method – of food preparation, but there are steps you can take to reduce your family’s risk. READ MORE

Kootznoowoo, Inc. makes advancements on long-awaited hydropower project The Kootznoowoo, Incorporated (Kootznoowoo) Board of Directors has recently announced that the Corporation has entered into an amended grant agreement with the Alaska Energy Authority (AEA) to complete the design of their long-proposed Thayer Creek Hydropower Development Transmission Project.   READ MORE

Norwegian Cruise Line Holdings Ltd. Announces Partnership With Huna Totem Corporation to Construct New Pier at Icy Strait Point Near Hoonah, Alaska Company to Receive Preferential Berthing Rights in Popular Port Destination Demonstrates Company’s Long-Term Commitment to Alaska Market MIAMI, Dec. 06, 2018 (GLOBE NEWSWIRE) -- Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) (the “Company”), a leading global cruise company operating the Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises brands, today announced a partnership with Alaska Native-owned Huna Totem Corporation to develop a second cruise pier in Icy Strait Point, Huna Totem’s world-class cruise ship destination in Hoonah, Alaska. The pier is scheduled to be completed for the summer 2020 Alaska cruise season and will be built to accommodate Norwegian Cruise Line’s Breakaway Plus-class ships. READ FULL PRESS RELEASE

‌ Re-Building History and Maintaining Heritage  By Heather Kaiser Corporate Communications Manager Cape Fox Share Services [email protected]   In Tlingit, Sanya Kwáan means Cape Fox. Cape Fox Corporation (CFC) is the Alaska Native Corporation for the village of Saxman and is comprised of a family of businesses divided between two distinct groups: The Federal Contracting Group and The Commercial Group. Over the years, the company primarily generated revenue through harvesting timber and managing lands across 23,040 acres. As the timber industry slowly declined, the strategic business structure realigned towards new markets, which now include hospitality, tourism, real estate, and federal contracting.  CFC’s mission is to maintain a strong financial foundation to provide immediate and long-term economic, education, and cultural benefits for our native shareholders. Whether federal or commercial, our customers recognize our quality of service and our employees provide exceptional skill and expertise.  We are a value-adding company that works together with our customers to meet and exceed requirements. READ FULL PRESS RELEASE

Juneau, Alaska — The 45 th Annual Meeting of Shareholders of Goldbelt, Inc. was held Saturday, July 13, 2019. Goldbelt’s shareholders voted to establish the Goldbelt Tináa Distributions Trust with an 85% approval rating and elected three directors, each to a three-year term. Nine shareholders ran as candidates for the three open board seats. READ MORE HERE Considering a Carbon Credit deal? Contact Encourage Capital today!

Grande Denali Hotel and Denali Bluffs Hotel, owned and operated by Old Harbor Native Corporation, have both consistently ranked i n the top 3 hotels to stay in in Denali National Park. According to booking.com Expedia, Travelocity, and many other travel engines, the Denali Bluffs and Grande Denali are must see properties! In May of 2017, OHNC opened the 64 fabulous new Riverview Rooms at the Bluffs, taking the Bluffs from 112 Rooms to a total of 176. In addition to the expansion, both Hotels have seen on-going major improvements, updates and renovations over the past 5 years, a major factor in our Top of the Top Tier Rankings on TripAdvisor. for quite some time, the Denali Bluffs Hotel sits #1 on TripAdvisor, with the Grande moving back and forth from #2 to #3.  The properties include 336 total guest rooms plus 6 private cabins, the Alpenglow Restaurant & Lounge, the Mountaineer Grill & Bar, the Peak Espresso Stand and the Perky Moose Pantry & Café. Enjoy spectacular views of the Sugarloaf mountain slopes! Each room has a private veranda from which guests can see the magnificent Nenana River and Denali National Park. The Grande Denali Lodge and Denali Bluffs Hotel offer special discount offers to members of the military, to include both active duty and retired service personnel visit the website: www.denalialaska.com or call us at: 855-683-8600.

THANK YOU TO OUR 2019 MOOSE PARTNER

THANK YOU TO OUR 2019 SALMON PARTNERS

THANK YOU TO OUR 2019 CARIBOU PARTNERS!

See our full list of partners or Become a partner today!

Business News and Advice from our Partner Network

Judge Me by My Performance Rating Do You? Performance evaluations are widely reviled by all but the most masochistic and die-hard traditionalist supervisors, employees, and HR professionals. For most, they’re somewhere between a root canal and spending a sunny afternoon at the DMV on the pain-pleasure spectrum. Worse yet, they don’t work!  READ MORE

‌ Alert Defense Contractors To See New Cybersecurity Standards, Independent Certification Requirements Details concerning the U.S. Department of Defense's (DoD) new cybersecurity standards are emerging. Called the Cybersecurity Maturity Model Certification (CMMC), compliance with this new set of security standards will be required in order for DoD contractors to compete for contracts. This Holland & Knight client alert will cover what is known about the standards, the certification process and the schedule for implementation of the CMMC program. Contractors should be aware that DoD is holding briefing sessions for contractors throughout the remainder of the summer. The  CMMC website  lists the  locations of these sessions , and DoD has solicited requests for additional cities. If you are interested in suggesting an additional location, you can submit the request through the CMMC website. READ MORE

Investment Firm Works Closely with ANCSA Corporation Pt Capital partners closely with Alaska Native Corporations in several different ways. The firm itself has counted Alaska Natives and ANCSA Village Corporations among its owners since it was founded in 2013. Its primary line of business is private equity asset management – management of a fund that generates return for investors by buying, holding, and selling private companies. In addition, Pt Capital takes on advisory assignments on behalf of clients looking to buy or sell companies. To date, Pt Holding Company has issued cash distributions to its equity investors every year since it was founded, fueled by revenues from fund management and advisory assignments. READ MORE

Did you know that BSNC provides bereavement benefits? BSNC provides Shareholder Bereavement Assistance in the amount of $2,500 to help defray the cost of funeral expenses for an original BSNC shareholder, a lineal descendent of an original BSNC shareholder, or the spouse of an original BSNC shareholder. The deadline for filing for bereavement assistance is within three months of the date of death. The benefit may be applied for by an immediate, surviving family member either in the Nome or Anchorage office. READ MORE Meet Alyse Curran! VP - Financial Consultant and CIRI Shareholder Alyse is VP - Financial Consultant for Charles Schwab & Co. Inc. right here in Anchorage Alaska. She can partner with you to understand your goals, create a personalized plan, and provide investing guidance. You’ll understand where your money is invested and why, how your investments are performing, and how much it’s costing you. Plus you’ll have access to Schwab’s portfolio management expertise, insights, and specialists. It’s a modern approach to wealth management—so you can take ownership of your financial life.  READ MORE

2 Day Village Corporation Training for Doyon Villages! August 7th – August 8th 2019 Pipeline Training Center Fairbanks, Alaska Join Doyon, Limited for a packed two day training for an overview of subjects that impact your village corporations. The two day training will cover a broad range of topics including: vital shareholder data services, annual meeting and election information, current topics, sharing best practices, information and strategies along with providing the opportunity to meet other professionals serving in similar positions. Registration is free for attendees and lunch will be provided by Doyon, Facilities Catering. The two day training attendees include Village Corporation staff, Board Members, and Business Partners.  REGISTER HERE CIRI Increases Ownership in CINGSA Playing a vital role in ensuring sufficient year-round gas supplies for Southcentral Alaska, Cook Inlet Natural Gas Storage Alaska (CINGSA) is an underground gas storage facility capable of storing up to 11 billion cubic feet of natural gas. By substantially improving the reliability and delivery of natural gas supplies during the winter months, the facility provides a critical service to residents and communities throughout the Cook Inlet region.  READ MORE