ARRC March 7 Press Release:

Cost-cutting measures include elimination of 54 positions

Anchorage, Alaska – Today the Alaska Railroad Corporation (ARRC) announced the elimination of 54 positions as part of a major corporate restructuring effort.

ARRC has experienced a $45 million negative swing in finances from 2011 until now.

Contributing factors include:

•  a significant drop in revenue from key freight customers (coal and petroleum)
•  millions less in federal funding, along with a jump in required matching funds
•  at least $15 million per year to implement a positive train control (PTC) system as required by an unfunded federal mandate.

“Employees from across the company have examined the way we do business, helping to find greater efficiencies wherever possible,” said ARRC President and CEO Chris Aadnesen. “Our team took the utmost care to ensure reductions would not negatively affect the way we interact with customers. We will continue to provide the exemplary service our passengers, freight and real estate customers have come to expect from the Alaska Railroad, as a positive icon of this great state.”

Because ARRC curbed hiring as the revenue picture became clear last year, 25 of the 54 eliminated positions are already vacant, thus lowering the number of actual layoffs to 29. “It is very difficult to ask members of the railroad family to leave jobs that they love and need,” continued Aadnesen. “Our human resources department will work closely with every affected employee, offering all the support possible.”

Eliminated positions represent an 8% reduction in the year-round and seasonal ARRC workforce (see attached graph page) which equates to an annual estimated cost savings of $4.5 million in wage, salary and benefit costs.

This latest reduction in personnel comes on top of two layoffs in recent years. In 2008-2009, ARRC eliminated 191 positions after the worldwide economic downturn caused a severe drop in passenger and freight traffic. In early 2012, ARRC eliminated 52, mostly seasonal positions after the Flint Hills North Pole refinery cut production of refined petroleum products.

In addition to personnel reductions, ARRC is implementing several other cost-cutting measures. These include improving efficiency through modified asset use and service levels, right-sizing fleets and improving maintenance practices for vehicles and heavy equipment, conserving fuel and other expense reductions, improved purchasing procedures and controls. ARRC will also continue to seek opportunities for new and expanded revenue sources.

ARRC is a self-sustaining corporation owned by the State of Alaska that has operated without a state subsidy for operating costs since being purchased from the federal government in 1985.

Seward Master Plan Presentation(1.1MB)

Photos taken by Ronn Hemstock

The gleaming blue and white tug Aiviq cruised into Resurrection Bay on Wednesday, Feb 27 and tied up at the Alaska Railroad dock. Pronounced EYE-vik, the name means “walrus” in Inupiaq. This is the tug that suffered mechanical difficulties while towing Shell’s drilling rig Kulluk along the coast of Kodiak Island in late December.

What a massive tug! She dwarfs all of Seward’s fleet. According to Wikipedia, she’s 360 feet long and 80 feet wide. There’s room on the helideck for a Sikorsky S-92. She can run at 15 knots (17 mph) in open water, and 5 knots (5.8 mph) in 3 feet of level ice, and can pull 200 metric tons. She is also an ice breaker, designed and constructed for breaking ice to open navigable channels for other ships

Practically brand new, she was built in 2012 in Louisiana for $200 million. The vessel is designed for zero discharge (hear that, cruise ships???) with water-lubricated stem tubes and dual oily water separators and sewage plants. More information on-line at

http://www.professionalmariner.com/American-Ship-Review-2013/Aiviq-Pride-of-Shells-Alaskan-drilling-fleet/.

Thursday, an even more massive ship, like a visitor from another world, anchored up in the inner bay. The somber gray Xiang Yun Kou is a semi-submersible, heavy lift vessel built in China in 2011. It is 709 feet long by 141 feet wide with an open cargo deck 584 feet long by 141 feet wide. More information on-line at http://www.cosco.com/en/news/detail.jsp?docId=18484.

Sometime soon, the Xiang Yun Kou will scoop up the drilling rig Noble Discoverer by adding ballast until it is below the draft of the drilling rig. Then tugs will push the drilling rig over the semi-submersible’s deck, the ballast will be discharged, and the tow vessel will rise up with the drill rig on its deck. It’s faster to carry it than to tow it across the North Pacific to a shipyard in Asia, probably South Korea, for repairs. The voyage will take 2 to 4 weeks. More information on line at

http://my.firedoglake.com/edwardteller/2013/02/12/kulluk-and-noble-discoverer-to-both-be-dry-towed-to-asia-for-costly-repairs

Submitted by Carol Griswold

By Heidi Zemach for SCN

Guests generally don’t appear before the Seward City Council with passionate advice on how to conduct their business. Not when it requires a total change in their normal thinking process. But Laszlo Kozmon of Strategy-Nets LLC, of Cleveland Ohio, and Christi Bell of the University of the Alaska Center for Economic Development, did so Monday, Feb. 25 at a council work session, and also at the regular meeting when they presented the Seward Economic Development Plan on behalf of the Seward Chamber of Commerce. (File photo by HZ taken during October 18 meeting at The Legends.)

The plan contains many broad ideas gathered during two well attended, day-long public gatherings that the Chamber hosted, facilitated by Kozmon and Bell.

Kozmon told the council that Seward has several challenges including an under-use of potentially valuable assets; a highly concentrated tax base that needs diversification; a lack of pro-growth city policies; inexperience in different organizations working together for a common goal; and the business community, residents and city often at odds over what to do.

The plan the local folks came up with suggests seven economic growth initiatives to increase revenues by bringing businesses and jobs into Seward. They include the SMIC harbor development project, a railroad dock extension, creating an industrial area off Port Avenue and below the railway tracks. Other ideas include having Seward play a greater role in Alaska marine disaster or oil spill response and recovery, and encouraging broadband to expand and flourish here. There’s a major superhighway cable that runs through Seward, and straight out under Resurrection Bay, but there’s no off-ramp to the community of Seward, Kozmon noted.

To reduce costs for businesses, and keep them in Seward, the plan proposes alternative energy and energy efficiency, streamlining the city permit process, and again-broadband.

Seward would get its “biggest bang for the buck” or healthier economy by focusing on two of the five basic strategies to grow a regional economy, he said. Top among those strategies are retaining businesses, and building and attracting more of the same kinds of businesses. Kozmon also talked about bringing in “good money,” or supporting industry that will circulate several times around the community, while decreasing or discouraging “bad money,” or businesses that are here, but take the money Outside.

Kozmon also talked about fostering a quality, connected place that would attract people and businesses. The best people look for better-than-average places to live, he said. An example would be a place with good schools, affordable, available housing, recreation opportunities, quality medical care, and a good story to tell which would make Seward seem unique and attractive.

The plan proposes that the Chamber of Commerce play a central role in anchoring the core group that will oversee the plan and its implementation. The chamber would do more to foster business growth—not just organize events, as it does now. Its new role should be to assist growth by researching and uncovering new opportunities, providing education and training as needed, provide a contact network for businesses.

Kozmon asked the City Council to pass a resolution adopting the plan in concept, and pledging to do what it can to move the process forward. It should then start to work streamlining and combining all permitting, zoning, and licensing-related processes into one simpler process, preferably with Internet capability for self-service. Business owners have complained about the daunting multi-stepped process they have to go through to open or improve a store or restaurant, where permits are required every step of the way. They feel that hinders, rather than encourages their efforts.

The next step for the city would be to “repurpose” or sell city assets—primarily land it isn’t using, for example opening land at SMIC and selling it to marine-support businesses. To date, most of that land is tied up in city hands, and people don’t want to build on land they don’t own.

Kozmon said groups of interested people should get together and figure out some practical changes that they could accomplish in successive six month time periods. They would start with the first, then learn from their mistakes and accomplishments, alter their goals if necessesary, and move on to the next six-month period.

The council’s response appeared mixed. On the one hand they seemed to appreciate the Ohio planner’s enthusiasm over Seward’s exciting growth potential. They have already started to consider and implement some ideas in the plan such as SMIC development; putting all permitting agencies in roughly the same physical location in town, and assessing the land and property they could sell.  But one could also sense some skepticism about what it would mean to back such a comprehensive plan, and share its direction with other entities. There was cynicism expressed from these long-term city representatives over previous attempts tried and failed.

“Not having a full P and Z board has hurt us. If you really want city-friendly policies this is where we need to start, and that’s holding up everything,” said Vanta Shafer.

“Council’s come and go, but we get new administrations. Sometimes (the direction taken) depends on who is administering those policies,” said Marianna Keil.

“Years ago I tried to start a Port Trade Zone. They about run me out of town!,” said Bob Valdatta

“People always say the city is hard to work with, but then they won’t tell us the brass tacks. I don’t think it’s an imaginary problem, but has it blown up over the years?,” said Shafer.

“Why isn’t anybody talking to Google?,” asked Kozmon, suggesting that call centers or high tech businesses would be a good idea.

“We talked to them but it didn’t go anywhere,” said Christy Terry. She reminded the council what a struggle it was for the city to allow GCI to hang new wire cables on the aging downtown telephone poles.

“You’re talking about daily things,” Kozmon responded. “What you need to be thinking about is a future. Acting on what we find out, and acting on what we hope the future to be.”

Kozmon and Bell watched with interest as an item came up at the council meeting about amending the zoning designation of a small portion of city-owned land (3/4 of an acre) near the waterfront boundary from “harbor commercial” zoning to “park” zoning. The discussion went both ways about keeping that land more park-like, versus allowing it to be developed. In the end council tabled the matter till April 8th.

During citizens comments Kozmon lectured the council on what he had just witnessed. He said there was an opportunity to consider all city land assets as one, and determine how each parcel can support the kind of economic growth decided upon. But instead, he could see that the council was “piece-mealing” these kinds of decisions.

“I can see you go thru lists and lists without making decisions as a cohesive whole.  Now you have two plus two plus two is five,” he said.

Free Avalanche Awareness Class Saturday Feb. 9th  10am-3PM, Seward AK  

(Still 10 am (I noticed an older post) at new Seward Library just a reminder if interested we have room! See you there)Updated 2/8/2013

Topics covered include: Human Factors, Terrain, Snowpack and Weather, and Avalanche Rescue including avalanche beacon practice.  Come join us if you want to learn about avalanche safety or just want a review.

Sponsored by Chugach National Forest

Location Seward Library, 239 6^th ave, Seward AK 

For information contact: Alex McLain Avalanche Specialist at (907) 288-7710 or 362-3720 (cell Phone).

Bring some warm clothes since we will be outside for a few hours and an avalanche beacon if you have one.

CHE-AK, the Alaska Community Action on Toxics hosted an interesting public conference call Wednesday morning detailing the Toll of Alaska’s Coal: Health Impacts of Coal Exports.  It featured guest speakers Dr. Steven Gilbert and Regna Merrit, and ACAT’s own Heidi Zimmer.

The podcast  the call on “The Toll of Alaska’s Coal: Health Impacts of Coal Export,” is now available on its website.
Click here to download the presentation slides referenced by guest speakers:

 
For more information about coal development, health impacts, and Health Impact Assessments (HIAs), please visit: www.protectakhealth.org

By Heidi Zemach for SCN

Tom Tougas’ business workshop Monday, at the new library museum’s community room. Heidi Zemach photo

When you’re as successful at business, and as outgoing as Tom Tougas is, less experienced entrepreneurs tend to listen, hoping for whatever advice they can get to use for their own business.

Plus, it’s the slow season now, so there’s more time to plan and reflect.

Tougas began offering a series of entrepreneur workshops in the new Seward Community Library Museum Monday night. Eighteen local business people had signed up to attend the workshops as of January 21st. The workshops will run through April 1st. Tougas is conducting the workshops in support of the ongoing efforts of the new group, Young Entrepreneurs of Seward, by offering his own experienced guidance and practical information that participants can use in making their own business more successful—or in starting a successful business.

Tougas owns Hertz Rentals and Major Marine Tours in Seward, but his primary business is running a tour bus company and passenger ferry boat services in southeast Alaska.

Interest in his workshop was so high that the class location was switched from the small conference room to the large community room on the building’s ground floor.

Tom Tougas shares his business philosophy to younger generation of entrepreneurs. Heidi Zemach photo

The students included restaurant and ale house owners, the owner of a bed and breakfast who runs a food booth at fairs across Alaska, a city council member who runs an inn and Laundromat coffee shop, and even the of general manager of Seward Providence Hospital. They sat attentively taking notes as Tougas suggested that they forget everything that has happened up to this time as it’s past and gone, and not useful to dwell on. He then asked each entrepreneur to select a certain date in the future meaningful to them. His own date is in the fall of next year when his final boat payment is made. They would then be asked to set a specific goal to accomplish by that date, and a plan of action steps to take leading up to it.

The class is quite different from the small business administration classes Tougas has taught at Resurrection Bay Community College, he said. That class was based around curriculum typical for BA 166 college classes, requiring tests, papers, and a grading system. But this one will be taught in an interactive question-answer format, designed to address 25 questions and challenges that its members will have to face, or have already faced.

Some other topic examples: What are your strengths and weaknesses? How do you recognize an opportunity that fits well with your personal mindset, capabilities and life goals? Is your business idea economically viable? Are you better to start a business from scratch or buy an existing business? How much do you need to spend on sales, marketing and location? When? What permits will you need?

Tougas hopes the workshop will help to increase the ratio of Seward businesses generally. “Seward has high percentage of business failures. I usually see them after the fact,” he said. “Usually when a business fails, the reason is very predictable– the owner did not write a good business plan, and think through all of the implications beforehand.” Seasonality is an important part of the equation in Seward, he said. Running a successful business is easy in the busy summer tourist season, but one has to put by enough to be able to survive through the slow, much lengthier winter season.

By Heidi Zemach for SCN

SCF’s Amy Haddow announces $56,000 figure for 2013 grant cycle.

Free money is available for the asking. The Seward Community Foundation’s Board of Directors is ready to provide grants totaling $56,000 to local nonprofits for causes and projects that they deem worthy, and in the interest of the public in the coming year. That’s a promising increase over last year’s grants generated from the SCF’s endowment’s interest earnings worth just over $30,000. Board members expect the increase to continue over the next few years. The SCF endowment fund, currently worth $2.9 million, is invested by the Alaska Community Foundation, a professional philanthropic organization that manages more than 250 funds, including the SCF, and has assets totaling more than $47 million, according to its website.
The SCF provides grants from its interest earnings from the endowment, in a way similar to the Alaska Permanent Dividend Fund. This new funding year, 2013, the SCF directors were so excited by the figures they received, and the opportunity that this presents to local nonprofits, that they went out of their way to let the community know about it, kicking off that effort Thursday afternoon, Jan 17th with a reception at the Breeze Inn. The board hopes to encourage the more than 60 nonprofits in Seward and Moose Pass to apply for their grants by the March 1 deadline, when the bulk of the funding will be awarded. There also will be opportunities for groups to apply for mini-grants for projects throughout the year.

Scheffler Creek restoration

In the six years that the foundation has been in existence, it has provided 65 grants to 24 area nonprofits in Seward and Moose Pass, said outgoing board president Amy Haddow, who is turning over her position as president to Kim Reierson. But many groups have yet to apply.
The Seward Senior Center has been perhaps the greatest recipient of awards from SCF. It received an award for its recent kitchen renovation project, which enables the center’s dining area to be rented out, and used as a way to raise funding for the center. This year it will use a $3,000 grant to assist in the funding of ‘Seward Unleashed’, a literary project to preserve the culture, color, and history of the living citizens of Seward. “Everyone is very excited about that project,” said Center Director Dana Paperman. Next, she hopes to obtain a grant that will help pay for the purchase of a new more fuel-efficient van.
The center’s success in obtaining grants is because of the strength of its applications, and Paperman’s grant-writing skills, not necessarily because it is more worthy than other organizations, said Haddow.

Madelyn Walker discusses grant-writing tips workshops. (Heidi Zemach photo)

Madelyn Walker, the experienced grant writer, and soon-to-be former board member will condense her knowledge into two free two-hour long workshops this month and next on tips for grant writing for non-profits. She hopes the workshops will help and encourage groups not just successfully apply for SCF grants, but for funding available elsewhere. The most common mistakes made on applications to SCF are missing the deadlines, incomplete applications, lack of detail about specific projects, and how many people specifically they will impact, board members said. Walker is willing to schedule even more workshops in the community, depending upon interest.
The SCF board also is seeking additional advisory board members-especially men, parents of young children, and business people, folks that can better represent the entire community. Currently, the board is dominated by women in their 50’s, and only has one male, Paul Rupple, Haddow said.
The larger contribution available this year, and its size generally can partly be attributed to the generous $1.9 million endowment of the estate of Tony Rollo. Much of the start-up funds came through generous matches from the Rasmuson Foundation, another major Alaska philanthropic organization, which is scaling down its contributions as the local fund takes off. The interest earnings of the endowment are averaged over the previous five-year period. The Alaska Permanent Fund’s Pick-Click-Give program is a good way to donate locally to numerous worthy organizations through SCF.

Girl Scouts and dogs wear adopt-me vests

Save Our Seward Pets, or S.O.S. Pets has received $1,000 grants that go for its spay and neuter voucher program, which helps reduce the cost for individuals of getting their pets fixed, said volunteer Ami Wright. The group also obtained a mini-grant for “Adopt Me” vests, worn by dog walking volunteers and the dogs themselves, to encourage people to adopt animals that they meet while out walking. The Resurrection Bay Conservation Alliance received $4,000 to assist in re-vegetating and reconstructing two highly eroded sections of stream bank on Scheffler Creek, said RBCA President Mark Lutrell.
The Boys and Girls Club has received $5,000s grant to support the DaVinci Camp, a four week summer science and art program for youth in grades 1-6. The Seward Tsunami Swim Club received $1,500 to assist in the purchase of a Vasa Trainer, equipment meant to build strength and endurance for longer distance swims. The Alaska SeaLife Center received a $3,760 grant to create an after-school Ocean Sciences Club for students… and the list continues.

Da Vinci Summer Camp students viewing the world close-up

A Seward Journal reporter asked whether the board would eliminate from its application pool any organizations that have misused funds. All successful grantees are required to submit follow-up reports detailing how the grants were spent, Haddow said. She added that CSF would probably not want to forever penalize a group for the action of one of its members, such as when a staff member embezzles funds, and subsequently leaves the organization, as in a case that occurred recently in Anchorage.

Heidi Zemach for SCN
Seward’s Health and Wellness project is about to enter its third year, with some changes over previous years such as prizes for effort, support groups, private nutrition sessions, behavioral counseling, social networking, and free pool cards. The new program also hopes to reach 30 more people than in each of the previous two years by offering two six-month sessions instead of one, with 50 participants in each one.

Susan Ernst and Amber St.Amand speak at Chamber luncheon

Friday was the deadline to apply for the program, and by then more than 100 people had filled out applications. Susan Ernst, the owner of Resurrection Fitness Bodyworks, and Amber St.Amand, who works for Providence Seward Medical & Care Center, and also has begun AK Dietician Services Inc., a new private business, reviewed the history of the wellness program Friday, Dec 7, 2-2012, the last Chamber of Commerce noon luncheon of the year.
The pilot program was started after a community health survey in 2008 found that 36.6 percent of Seward respondents considered themselves “overweight,” 28 percent more called themselves “obese,” and 39 percent of the total said they had not visited the doctor for a wellness checkup in the past three years. Some 13 percent of respondents also said they used the hospital emergency room as their main source of health care, 17 percent used tobacco, and 25 percent took part in binge drinking.
To address some of these issues, the program initially targeted the uninsured and underinsured population for participation, and gave highest priority to those with high numbers for conditions such as blood pressure, high cholesterol, glucose, and obesity—offering them free primary care for a year, free physicals, blood lab-work, gym membership, and nutrition classes and counseling.

Providence Health and Services Alaska Region had received a $100,000 grant for the program by the Community Based Strategic Investment Grant (CBSI) and dispersed through United Way of Alaska. Providence Seward matched that amount with its own $100 thousand. It also has received various local in-kind contributions including services worth $47,000 from Rez Fitness in the first year, and $36,000 in the second year. AK Dietician Services, a new Seward business, has promised to donate $13,000 worth of in-kind services during the 2013 program. That’s a big committment for Amber, Ernst said. Plus offering in-kind services for 30 additional clients (equaling 100) is a ”huge increase” for her own business, which regularly collects and tallies the relevant data of each participant throughout the program. The gym also will offer 42 fitness classes, open to the entire community.

In the second year, the program did away with the free primary health care component, which some participants had taken advantage of perhaps too freely, at a greater cost to the hospital than expected, according to the program’s sponsors and former hospital administrator. In its place, Providence began offering a sliding-fee scale to all of its qualifying (uninsured or underinsured) patients, and basic blood lab work and other tests on demand for all community members, at subsidized group rates. These “know your numbers” tests are ongoing, and Providence is currently looking into offering greater evening and also weekend clinic hours to make services more available.

-2011-2012 Project Data:

• 72% lost weight: 14% lost 5 lbs or more, 22% lost 20 lbs or more
• 53% Lowered both BP numbers
• 55% lowered resting pulse
• 67% lost cm of waist: 22% lost 5 cm or more,19% lost 10 cm or more!
• 47% increased HDL (good cholesterol)
• 47% decreased LDL (bad cholesterol)44% decreased their Glucose (3 month average)
• 44% lowered Glucose

The upcoming health and wellness program also will hold a motivational group orientation, social media networking between participants, and participant’s fitness levels also will be taken prior to, and after going through the program.
Last year’s theme was “It’s up to you.” This year’s slogan is “No Excuses.” “We’ve heard them all,” said Ernst. But, she reasons; “if the president and his wife can find the time to work out every day, so can we,” she added.

Amber St. Amand, offering "in-kind" nutritian services (Heidi Zemach photo)

The program’s planners, always seeking to improve the program, hope to provide something to address the differing needs of clients, whether it is a more personalized approach such as one-on-one nutritional or behavioral counseling, or the more group-oriented presentational-style monthly nutrition classes, St. Armand said. Organizers also hope to bring in some guest speakers for the two upcoming sessions, including a behavioral health speaker, and local physicians. To date, the program is estimated to have touched 12-14 percent of the Seward community in some shape or form, Ernst said.

Some 17 people attended the luncheon, among them newly re-elected State Senator for District N Cathy Giessel, a nurse practitioner by training, who drove up from her home in Anchorage. Following the meeting, Giessel gave SCN her reaction to the presentation, with its implicit idea of subsidizing certain aspects of community health care and wellness by removing some of the traditional barriers to care. There definitely is a cost to provide such a program that can be considerable, as was experienced during the first year when free primary health care was offered, Giessel said. But she agreed with the program’s core concept that stresses the need for individuals to take personal responsibility for their own health—as that is what she has often reminded her patients throughout her own practice. You can educate, and repeatedly tell people what they should do to improve their health, Giessel said, but unless they decide to make the change, and carry it through—it won’t happen. And that’s exactly what the wellness program has discovered.

First Friday art walks generally take place during the summer time. But some business owners and residents thought it would be a nice idea to encourage folks to buy local if they held one in December. Stores stayed open, displayed a lot of local artistic talent, provided goodies and fellowship to those who stopped in.  2012 Iditarod Sled Dog Race winner Dallas Seavey signed his new book ‘Born to Mush’ at Cover to Cover Bookstore, and Amy Mow brought her chocolate fountain and some sweet dipping items. Santa visited each business that was open, and Luke Rosier played his guitar and sang for customers at the Ranting Raven Bakery  & Cafe. Saturday, December 8th, was tax break day, where local sales taxes were waived for local shoppers.

Santa and Luke Rosier First Friday at Ranting Raven (Heidi Zemach photo)

Heidi Zemach for SCN

In the Alaska Railroad Corporation’s newly released “2013 Report to the State,” ARRC predicts a bleak financial outlook for 2013 and the next five years. In its long-range capital improvement plan for 2013-2017, railroad President & CEO Christopher Aadnesen lists a number of factors causing the outlook for the railroad, whose net income is expected to drop from an estimated $11.6 million by the end of this year to just $2.9 million in 2013.

It had been at $13.4 million just two years ago.

One of the main factors is a reduction in freight caused by poor global markets for coal exports. The railroad estimates a drop of at least 30 percent from its 2012 export coal shipping levels.

Seward has been busy with long coal trains being loaded onto the MV Fortune Iris at the cruise ship/coal terminal for shipment overseas.  But this is the only coal barge that Seward will get for the month of December, and as few are predicted in the coming months.

Another freight income in decline affecting the railroad is due to North Pole Refinery’s closure of the second of its three crude petroleum processing towers in July, effectively cutting the railroad’s fuel-hauling business to its lowest volume in two decades. The amount of fuel that the railroad had been transporting from the refinery had been reduced by more than half  over the past decade, but it had increasingly been transporting less and less. An additional reduction of 10 percent in fuel freight is projected for 2013.

ARRC expects a $10 million drop in combined freight revenues (from both coal and fuel) in 2013 compared to 2011.

Some ripple effect is already beginning to be felt here in Seward with fewer trains and coal ships expected, and a layoff of several full-time employees at Aurora Energy Services Inc., which runs the coal transfer facility here on behalf of the railroad. An Aurora official would not say how many employees were laid off, but and said they hoped to be able to hire them back again, and add more when the global coal market picture improves. Aurora Energy Services generally has employed 16 people full-time in Seward, and there are 53 other jobs to related coal export activity, according to the ARRC website

The number of coal trains also will be cut back, said Alaska Railroad Corp Manager of External Affairs, Tim Sullivan.  “The number of trains to Seward will be reduced in December because of the holidays but, starting in January, we will reduce the number of coal trains to Seward from approximately four per week to two per week because of the reduced demand.”

“In 2011 we shipped 1.091 million metric tons of coal to Seward. By year end 2012 we estimate shipping 874,000 metric tons,” he said

The Usibelli Coal mine in Healey, which mines the coal that is transported to Seward, now forecasts a 30 percent drop in export coal shipping levels from 2012.    “At this point in time, the next ship due in will be early December, followed by another one in February,” Robert Brown, the Vice President of South Central Operations for Usibelli Coal Mine, Inc, who oversees AES said recently.

Brown credits a glut in the international coal market to the difficulty in finding buyers for the Usibelli coal: “We sell coal to Chile, Korea and Japan, and it’s across the whole Pacific Rim right now, an abundance of supply and a reduction in demand,” Brown said.

The Seward coal transfer facility has been credited with being a major factor in helping maintain the viability of ARRC generally, and with being the reason it can bring visitor trains here during the summer tourist season.

Even with reductions next year, freight is expected to account for $91 million, or 67 percent of ARRC’s total revenues. By contrast, passengers are expected to account for only $24.5 million or 18 percent of 2013 revenues, while real estate will make up 12 percent of revenues.

Despite these dire economic predictions, ARRC’s five-year capital plan for internal funding still lists $350,000 for upgrades at the Seward Coal facility in 2013, and $750,000 in each of the subsequent four years.

Another major challenge to the railroad’s capital budget is a reduction in federal transit- funding, under the federal MAP 21 Transportation Reauthorization law which passed in the middle of the year, and is projected to reduce FTA formula funding for the railroad from $36 million a year to $31 million. To make matters worse, a technical error in MAP 21 occurred in October that could reduce FTA funding to $27 million next year if not corrected, Aadnesen said. Alaska’s delegation is working on fixing it, but there are no promises, he said. (more…)

Join Travis Beals, 2013 Iditarod Rookie and owner of Turning Heads Kennel, at the Seward Brewing Company this coming Thursday December, 6th from 5-7 for family night. Kids will enjoy playing dog sled themed games, and young and old alike will enjoy meeting a few members of Beals’ kennel — including some puppies, and learning about mushing. Beals has lived in Seward his entire life and has owned and operated his own kennel since the age of 14. He is an accomplished racer having placed second in the 2009 Jr. Iditarod.  He also received the humanitarian award for best dog care in the 2010 Tustumena 200, and recently finished 3rd in a very competive field for the Northern Lights 300. Beals’, 21,  is tremendously excited for the upcoming Iditarod; it’s been his goal since grade school.

“I love mushing and there is nothing more satisfying than sharing my passion.” He is looking forward to meeting the young faces in Seward Thursday night. “I got interested in mushing when I was a kid, so sharing it with kids is something really special. You never know, who you could be encouraging,” he said. “I hope to inspire a new generation of Seward mushers.”

Thursday’s festivities will also include a chance to take a picture with a dogsled and to try on some mushing gear.  In addition to racing, Beals recently started offering dog sled rides this summer out of his home on Exit Glacier Road to help pay for his racing. Learn more about Beals at his website, www.TurningHeadsKennel.com and on facebook at www.facebook.com/TurningHeadsKennel.

Rodney Mohr, and Trent Burbank of PCL, Construction Services Inc., present a $2500 check to the Seward food bank, He Will Provide.  Receiving the check is Jackie Campbell, treasurer for He Will Provide.

Mohr and Burbank of PCL, work on the local Seward Community Library Museum project which is nearing completion. Turn over to the City of Seward is slated for the first part of December. The Dedication Gala is scheduled for January 12, 2013.   Read more about PCL at their website: www.pcl.com

Photo by: Mary Tougas

By Heidi Zemach

If you’re reading this, chances are you’re not in Anchorage, fighting the Black Friday crowds. If that’s not your cup of tea, consider shopping locally. It helps the community merchants, allowing them to stay open longer and to survive, and your own city, through sales taxes, property taxes, etc.

Some places that were closed following the summer tourist season, are opening especially for holiday shopping:

The Grazing Moose (Summer Market) Holiday Market, located at 312 5th Avenue, has reopened Friday, November 23rd for the Holiday Season after being asked to do so for the last few years. Their hours are Tuesday through Friday from Noon to 6 pm -ish plus December 23rd and 24th.

Lots of local artisans and bakers are bringing in items for the cooperative market, including Debra, who is baking Peasant Bread, Cinnamon Raisin Bread and Bacon Cheese Rolls for Friday, November 23rd, arriving at noon. Amy has a new Gluten-free Chocolate Chip Cookie recipe and Chocolate Dipped Honey Comb Candy, Gingerbread Caramels, Chocolate covered Peppermint Marshmallows and Chocolate Covered Mocha Marshmallows. They’ll also be serving a hot, spiced drink provided they find something to keep it warm. . Katy Lee, Dorothy Urbach’s granddaughter, has joined the co-op with pretty, sparkly jewelry. Brenda brought in a brand new selection of her jewelry, Annie from Anchorage sent down a sweet assortment of silver earrings and necklaces, Annie Gaule will have her latest creations.

The Ranting Raven, on 4th Avenue downtown also has re-opened, offering a variety of clothing, gifts, artwork in addition to fresh baked pastries, hearty soups, quiches and specialty coffees.
Seward’s annual Holiday Arts and Crafts Fair will be open Friday evening, November 30 and all day Saturday December 1st, at the Dale R. Lindsey Alaska Railroad Intermodal Cruise Ship terminal. It will feature over 80 vendors with arts and crafts, food vendors, photos with Santa, and local entertainment by the High School Choir, Community Band, and songster Luke Rosier.

Come down and find out who else is open. With gas at $4.30 a gallon, it’s a win-win!

The USCG is conducting a survey on Resurrection Bay to determine the effectiveness of the current aids to navigation and the potential need for change. If you transit Resurrection Bay please follow this link to participate in the survey! Any and all applicable feedback is greatly appreciated.

Thank you!

https://adobeformscentral.com/?f=gDYjRQ1aXe0PyQ78SCK7OQ

By Heidi Zemach for SCN

A group of young Seward business people has begun meeting together, learning more about one another, and thinking about ways to move the town forward. Thirty of them met at the Seward Resort Tuesday, Nov. 13, for the second meeting of Y.E.S., an acronym for “Young Entrepreneurs of Seward.”
Some 25-30 had showed up for the first meeting at Chinook’s last month, among them local folks who run restaurants, an alehouse, a coffee shop, sled-dog kennel, welding business, a realtor, dental business, fish processor, and other marine-related businesses. They had invited Assistant City Manager Ron Long along to give them an update on the city’s development plans to date for Seward Municipal Industrial Center, SMIC, and the home-porting requirements of the Coastal Villages CDQ fleet, which has potential to draw additional marine-based businesses and jobs to town. Some hoped for a shot at making that happen.
The group also wanted to learn more about the city’s plans for the Seward Resort Army Recreation Camp, which closed down this summer, leaving behind some prime acres of land along the Seward Highway in town. The military’s plans for selling the campground property has not been finalized, and the city has not made plans for what to do with it either, Long told them.
Y.E.S. participants also felt that confusing list of city building permit requirements should be made more clear, and easier for the business community to deal with, and that city codes should be made more consistent, said Allen King, one of the group’s organizers. They also want Seward to provide better recreation facilities to attract and keep young families. Some had questions about the Seward Resort that remains, and why civilian residents are excluded from certain special events that it holds, such as a popular Murder Mystery. As a result, they decided to hold their next meeting at the Resort, and to invite its business manager Scott Bartlett to educate the group about how it operates.
The meeting Tuesday night included a host of newcomers as well as returning members, King said. The discussion was wide-ranging again, and Elliott Jackson, owner of the Railway Cantina and Chattermark Restaurant suggested that they take charge, get better organized and create agendas in advance of their next meetings. Nicole Lawrence, who works at Integrity Realty, suggested that they create a mission statement or business plan. Others said they should establish a social media presence, which they subsequently did on FaceBook. They also suggested sending a representative to City Council meetings to keep both bodies better informed.

(more…)

By Heidi Zemach for SCN
Heading into year two of the City of Seward’s biennial (two-year) budget for FY 2013, the new city administration has proposed some operating budget adjustments reversing some of the “drastic cuts” that department heads felt were made in their department’s budgets last year. During the first of a series of three evening work-sessions this week devoted to the topic, Finance Director Kris Erchinger laid out a list of proposed budget additions Monday that weren’t in the 2013 General Fund budget created last year.

Last year, department heads were required by former city manager Phillip Oates to cut a combined sum total of $800,000 from the city’s previous operating (or General Fund) budget; including $260,000 from Public Safety, $54,000 from Parks and Recreation, and $3,600 from the Library. Seward Police Department’s overtime budget was cut in half, although the budget they already had barely covered required holiday overtime pay, said Chief Tom Clemons. Cutting overtime in the public works department for 2012, similarly did not take into consideration the extra hours needed to cover winter storms and other emergencies, Erchinger said. That overtime had to be approved separately later.

Plans to save city revenues by closing Spring Creek campground, a restroom downtown, and to forgo City Christmas lights may have sounded plausible at the time, but some of those decisions were later reversed by popular demand. People have come to expect a certain level of services we provide, Erchinger said.

It had been a difficult, and controversial budget process that came amidst some public criticism of the new library museum building that the city was asked to bond for, and failed administration-driven proposals to raise additional revenues to pay for it through either increased property taxes, sales taxes, or a “sin” tax for alcohol and tobacco products. At the same time, council and the public learned about costly deferred maintenance needs for ageing and crumbling city infrastructure that would be addressed through enterprize fee increases.
In advance of the 2013 budget revisions, however, City Manager Jim Hunt asked his department heads to tell him their department’s budget needs, rather than direct them on an amount they needed to cut. And so they did, adding a proposed sum total of $512,500 back into the operating budget. All were justified during the work session by increased expected costs, personnel changes, employees needing specific training or certification, and city building changes. A proposed $10,000 budget increase for the TYC summer camp program, would return the fees charged clients to pre-existing 2011 levels. The proposal came about due to a sharp downturn in participation last summer, even after a tiered-fee scale was piloted, with lower fees offered to those who could prove their income status with food stamps, Denali Kid-Care, and doubled fees for the rest. (See the list of proposed additions to existing budget items at end of article.)

One area not addressed in the FY 2013 budget was the cost of paying for the new community library museum building in the upcoming year, other than cutting hours and a reduction in employees. Council also had suggested moving members of the electric department and some other employee positions into the current library building, rather than the city continuing to rent private office space for them. At Monday night’s work session, Erchinger detailed the estimated cost of keeping both the old library building, and the old museum open, and moving the city electric department, Parks and Rec sports staff (formerly located at AVTEC), and Community Development personnel into them. (more…)

FOR IMMEDIATE RELEASE: Nov. 2, 2012

Joe Fong at City Council Meeting (Heidi Zemach photo)

SEWARD, AK – Joseph Fong, interim administrator at Providence Seward Medical & Care Center since July, will now serve in the role on a permanent basis.
“Joe provides stability, integrity and a deep sense of the Providence Mission,” said Susan Humphrey-Barnett, Area Operations administrator for Providence Health & Services Alaska. “He has a desire to build lasting relationships in the community and is excited about this opportunity to serve the people of Seward.”
Fong will begin his new role on Dec. 2. As administrator, he will be responsible for all aspects of hospital, clinic and long-term care operations. He is looking forward to improving clinic operations, working with the Seward Health Advisory Council to ensure responsiveness to community needs and making the most of the physicians’ clinical expertise.
Prior to joining Providence Seward, Fong served as program development director at Providence Alaska Medical Center. Fong came to PAMC as an administrative fellow in 2001 after graduating with a master’s in health care administration from the University of Minnesota, where he also earned an undergraduate degree in biochemistry. He then served Providence in a variety of roles related to quality improvement, auditing and Operational Excellence projects before joining Surgical Services in 2005 – first as perioperative business manager and then as director of the department.
During Fong’s four-year tenure as director of Surgical Services, he led the department through a variety of operational improvements as well as expansion of the robotic surgery program. Joe was instrumental in restarting an operating room nurse fellowship program and supported the formation of the Alaska Perioperative Consortium, a collaborative with other Alaska hospitals to train new operating room nurses.
The hiring process for a permanent administrator included participation from the City of Seward and interviews with the Providence Seward management team, Providence Seward physicians, the Seward Health Advisory Council and the Providence executive team.
“During my time here at Providence Seward, I’ve been impressed by our staff’s dedication to supporting and caring for the Seward community,” said Fong. “We have a tremendous opportunity to provide excellent health care as well as encourage overall health and wellness for those we serve.”

Providence Seward Medical & Care Center is owned by the City of Seward and managed by Providence Health & Services, a not-for-profit network of hospitals, care centers, health plans, physicians, clinics, home health services, affiliated services and educational facilities. For more information about Providence in Alaska, visit: alaska.providence.org.