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a n n u a l re p o r t 2009 Remembering Our Captain of the Kuskokwim 8/14/33 - 1/7/10 co nte nt s Annual Report Theme: Iyana Gusty .........................................................................1 About Our Corporation / TKC Villages .....................................................................2 TKC Organizational Flow Chart ....................................................................................3 Message from the President/CEO .......................................................................4 - 5 Message from the Chairman ..................................................................................6 - 7 TKC Subsidiary Reports ........................................................................................... 8 - 10 Conflicting Landscapes Book Overview ................................................................ 11 Land and Resources ............................................................................................... 12 - 13 Our Shareholders ..................................................................................................... 14 - 15 Kuskokwim Education Foundation (KEF).................................................. 16 - 17 TKC Board of Directors ................................................................................................... 18 Committees of the Board / TKC Staff..................................................................... 19 In Memory ............................................................................................................................. 20 i n m e m o r y o f i ya n a g u s t y Respected Board member of TKC and lifelong resident of the Kuskokwim Region Iyana Gusty, a lifelong resident of Stony River and board from, shaping the dynamics of the corporation to what it is member for the Kuskokwim Corporation died on January 7, today and maintaining significance into the future. 2010 in Bethel, Alaska. Born and raised in Stony River, Iyana was one of a handful of elderly leaders remaining in the Chairman of the Board Leo Morgan said, “He was my friend Kuskokwim region. The legacy he left behind reminds us of and I miss him very much” . Iyana’s one-of a kind involvement the significance in embracing the elders around us with an with The Kuskokwim Corporation will be recognized for the appreciation and value of importance in traditional ways of good things he left behind to its people. living. Iyana has been preceded in death by his parents Gusty and Iyana Gusty was sworn onto the TKC board on August 24, Agrafina, his brother Constantine, his sisters Barbara, Lisa, 2007 to fill vacant seat I. He previously held a seat on the Catherine, and Madrona, his wife Mary, daughter Lydia, and board from 1978 to 2005 and in that time he made a unique sons Greg and Iyana Jr. aka “Sonny.” He is survived by Ignatti, contribution to the region. When it came to board meetings, Amy, Mary, Brittany, Junior, Tiffany, Joe, Carey, Olivia, JoAnne, Iyana had an optimistic and poignant manner of voicing Precious, Samuel, Evan, and Logan. himself to resolve matters that approached the board. His positive and respectful demeanor led as an example. His composure introduced a sense of accountability for one another, inspiring those he met to work together and look out for one another towards a common solution. The Yupik Eskimo elder will be remembered by many people of the region of the Kuskokwim River because of his character and accomplishments throughout his life. He didn’t know how to read or write yet it wasn’t something he was ashamed of. Iyana was a walking reminder of where many of the Kuskokwim’s region’s ancestors and relatives have come Iyana Gusty 8/14/33 - 1/7/10 The following pages feature photos of Iyana and quote excerpts from the Tundra Drums article “Captain of the Kuskokwim” written by Mark Leary 1 a b o u t o u r co r p o rat i o n W h o We Are Vision The Kuskokwim Corporation (TKC) was formed in 1977 By 2015, TKC is shareholder-managed $100 million asset when ten Alaska Native Claims Settlement Act Village value Alaska Village Corporation. (ANCSA) Corporations located along the middle region of • We will support our shareholders through the Kuskokwim River merged. The villages include Lower scholarships, education/training opportunities, Kalskag, Upper Kalskag, Aniak, Chuathbaluk, Napaimute, dividends and employment. Crooked Creek, Red Devil, Georgetown, Sleetmute and • We will develop successful businesses in and Stony River. out of our region. • We will responsibly manage our land for both The ten villages pooled their cash resources and land modern and traditional uses. entitlements together which allowed TKC to focus on many • We will strengthen ties with our shareholders. opportunities. TKC has many different areas of ANCSA responsibilities it must accomplish. TKC is a for-profit Native Corporation and we are governed by TKC’s Articles P u rP o s e of Incorporation, Bylaws and Alaska State Laws. In addition, To enhance our land, culture, and the lives of our people. TKC has over 950,000 acres of land to manage and over 3,200 shareholders, with descendents enrolled. Co m m i tm e n t • Honoring our traditions: valuing and helping one TKC has a Board of Directors of twelve at-large seats. Our another, celebrating and sharing our success, learning corporation is strategically driven from the Board’s directives through stories and respectful communication as defined in our Corporation’s Mission, Vision, Core Values • Integrity: being unified, truthful, and worthy of trust and Commitments. • Valuing our land and resources: being good stewards to provide for our future generations • Commitment: working hard to create results that benefit our shareholders t kc v i l l a g e s o n t h e ku s ko k w i m r i ve r 2 t kc o rg a n i z at i o n a l f l ow c h a r t “I’ve been working on the River for 20 years and I’m still learning!” said Iyana Gusty, Captain of the M/V Tammy and legend among the Kuskokwim River People. It wasn’t until many years later as a grown man that I understood what he meant: The River is always teaching us, because it’s alive - always moving - always changing. If we’re respectful & observant it will always teach us something. It’s when we quit watching; start thinking that we know everything that it gets dangerous. Many times as he brought the barge up the River, people out doing subsistence gathering would flag him down and come over in their skiffs to drop off a fresh fish, piece of meat, or even aqutaq. He was known from the South Fork to the Bay. A true man of the River - the whole River. 3 m e s s a g e f ro m t h e p re s i d e nt & ce o Our corporation was blessed with Suulutaaq, a civil construction company, is continuing with success during 2009 by almost any the Napa Valley Flood control project for the U.S. Army Corps measure. Consolidated revenue of engineers. This project will be worth over $67 million over was over $86 million, almost 60% its three year life. In addition, Suulutaaq management is above our budget of $54 million. actively recruiting shareholders to fill job openings on this Net income after taxes was $4.9 and other projects. Eight shareholders are now employed mAVer C Ar e y million, significantly higher than by Suulutaaq and I am pleased to report that shareholder, our original budget of $2.2 million. Renee Fredericks has been appointed as President of the TKC began the year with $34.7 million in assets and ended multi-million dollar subsidiary. the year with $54 million in assets. 2009 was clearly a growth year for the Kuskokwim Corporation. We are well on our way TKC Aerospace, based in Charleston, South Carolina to achieving our goal of being a “$100 million company in expanded operations into three more states and has plans asset base by the year 2015”. for further expansion in 2010. In the midst of this exceptional growth we have been building Our real estate operating company, Kuskokwim Properties, the organizational structure and operational capacity to experienced positive cash flow despite lower occupancy continue this growth. Our revenue forecast for 2010 is to rates in the Anchorage and Fairbanks residential rental move from this year’s $86 million to over $110 million. markets. This was achieved by improving operations and reducing costs. At the same time we have been able to Suulutaaq and TKC Aerospace, our 8(a) subsidiaries, have improve the desirability of our properties and attract better matured into profitable operating companies with total tenants which in turn will continue to reduce our costs per revenues of $30 million and $52 million respectively. rental unit. bAl AnCe sheet ACCo u n ts 2005 - 2009 Assets Liabilities Shareholders’ Equity 4 Unfortunately we have not been totally immune to the TKC continues to play a pivotal role in the development of national decline in commercial real estate. Our passive real the Alaska Native Village CEO Association (ANVCA). With over estate investment portfolio saw income of $267,060, which 200 village corporations in the state, ANVCA is a key resource was 53% lower than in 2008. We are monitoring these in the effort to improve the profitability and reputation of investments closely and considering strategies to improve our native corporations. The ANVCA annual meeting was these returns. attended by over 200 professionals in March 2008 and played a significant part in the defense of the Federal 8(a) program. In addition to our passive real estate investments TKC has significant investments in stocks and bonds. 2008 and Our mission is to maximize value to our shareholders both 2009 were tumultuous years in the equities markets yet our now and in the future. We are doing that by continuing investments did well. Our portfolio began the year at $6 to invest in our companies and people while setting high million and ended at $8 million. Five of our funds performed standards for professionalism and performance. I am pleased better than market indices. Unfortunately one of our funds to be the CEO of a company with such a bright future. was a disappointment and we will be assessing how to move forward with that fund during the spring of 2010. Proje C ted 2010 in Come Net Income Gross Revenue During those long days and nights on the barge with Iyana, I would spend as much time around him as I could. Even on trips where I worked a different shift than him, I would spend my off-time, sitting in the wheel house listening to him and his old-time country music. Sometimes people would wave at him or call on the radio to request a song. Iyana would slide open one of the pilot house side windows, get out the bullhorn, and sing a Hank Williams song across the water as we passed by. He had a sweet voice. 5 m e s s a g e f ro m t h e c h a i r m a n $86.7 million dollars in consolidated Several challenges lie before us in 2010. In many ways the revenue! What a year the decisions made this year by our shareholders and the Board Kuskokwim Corporation has had! of Directors will impact our Corporation for years to come. Your Board of Directors take Our shareholders will vote this year on whether or not to seriously their responsibilities increase the number of Class B shares in our corporation. leo mor gA n as stewards of the resources Whether you are for or against this plan it is critical that you of our company. Over the past make your voice heard by participating in the vote. It is few years we have carefully considered how best to invest important that our shareholders decide how the shares of those resources for our shareholders. We have diversified TKC will be structured in the future. our investments from passive investments and a simple stock and bond portfolio to include operating real estate We are also very concerned with how the Donlin Creek mine and subsidiary companies. The financial performance of will impact our shareholders and our lands. Your Board of our company over the past year is the result of that careful Directors is committed to ensuring TKC shareholders receive stewardship. In addition to records revenues, our assets a fair share of the employment opportunities and financial exceeded $54 million. Our goal of $100 million in assets rewards of this major mining development. In addition we does not seem far away. need to protect our lands for future generations. Managing TKC’s relationship with the Donlin Creek mine is one of our We understand the balance between future growth top priorities. through re-investment and the need for current returns by our shareholders. We remain committed to annual Our investment in our 8(a) subsidiaries Suulutaaq and TKC dividend payments and paid 2009 dividends of $562,994 Aerospace has been very profitable. We hope to invest in to our shareholders. This was the 17th consecutive year future 8(a) opportunities. We also recognize that the political of dividend payments and we expect 2010 to be the 18th and economic environment is very dynamic and guiding our year. Our policy of paying 3-4% of shareholder equity corporation through this changing landscape continues to remains in place. be challenging. It is the role of the Board of Directors to guide the strategy These challenges are significant, yet we have a talented of TKC and position the company for the future. To that Board of Directors and have built an exceptional senior end we will continue to monitor the balance between our management team. I am honored to serve as the Chairman passive and operating investments, as well as investigate of the TKC Board of Directors. new opportunities. There were no navigation instruments, no GPS, no radar, not even a depth finder in those first years that I worked with Iyana. He taught me about land markers - he had hundreds along the Kuskokwim. Some were distinctly shaped trees; some were old cabins, or big rocks. Some are still there. Some are gone now. 6 shAr e h o l d e r e q u i t y 1977 - 2009 di Vidend distrib utions Year Paid Per Share 1981 $121,800 1.00 1982 $243,600 2.00 1983 $243,400 2.00 1984 $121,700 1.00 1985 $152,125 1.25 1986 $152,000 1.25 1989 $121,500 1.00 1990 $364,500 3.00 1991 $66,770 0.55 1992 $821,878 6.77 1993 $127,470 1.05 1994 $303,500 2.50 1995 $300,000 1.45 Shareholder Equity 1996 $325,000 1.45 Dividends Paid Out 1997 $325,000 1.39 Shareholder Equity if Dividends Were Not Paid Out 1998 $350,300 1.50 1999 $243,900 1.00 2000 $377,100 1.50 2002 $260,900 1.00 2003 $268,900 1.00 ComP r e h e n s iV e i nCo m e 1977 - 2009 2004 $345,750 1.25 2005 $422,850 1.50 2006 $590,200 2.00 2007 $684,000 2.25 2008 $749,370 2.33 2009 $562,994 1.75 TOTAL $8,646,507 44.74 7 subsidiar y: Kuskokwim Properties LLC currently holds a majority interest In 2008 we brought the vacancy from 30% down to 5% by in 6 large apartment complexes in the West Midtown district the 4th quarter. This past year (2009) we have succeeded of Anchorage. The apartments are operated by our partners, in reducing the vacancy to 3% by improving efficiency American Multiplex LLC. The apartments range in size from and tenant quality. We have also continually been working small studio apartments to large 3 bedroom units. The rents on improving maintenance and reducing operating costs. are mid-range for Anchorage ranging from $600 to $1139 We made big cost saving changes like doing a lot less per month. contracting out of plumbing, painting and general repairs and doing more with skilled maintenance people on staff. And we’ve made smaller cost saving changes that will make a big difference over the years like using water flow restrictors and replacing regular light bulbs with more efficient energy saving bulbs. We are also working to gain weatherization grants from the Municipality of Anchorage to obtain up to $94,000 per building in weatherization grants to help reduce utility costs for the partnership. Our clientele are primarily working people in construction and service industries. The location of the properties offers All of these changes have resulted in improved operations our tenants easy access to downtown and walking access and cash flow and will prepare us for growing this segment to stores, banks, restaurants and office buildings. This of our business as conditions permit. outstanding location plus the dramatic improvement in management has proven a good formula for success. During those years we spent working with Iyana, he taught us many things about the River, Her People, and how to treat both. His influence on me personally was great. I know others will say the same. I’m thankful that I was able to tell him this as his time here was growing short. 8 subsidiar y: TKC Aerospace is based in Charleston, South Carolina and TKC Aerospace has also been awarded a subcontract by Rolls- employs a staff of logistics and aerospace professionals that Royce, the global power systems company, to provide specific are highly experienced with all aspects of aircraft acquisition, engine management, planner/scheduler and documentation sustainment, contractor logistics support, supply chain roles at seven designated Air Force bases in the US. This five- management, procurement, systems and services/support year agreement is designed to improve efficiencies and cost- operations. effectiveness for monitoring engine operational data and includes asset tracking and management in support of USAF airlift and aerial refueling missions. This subcontract is valued at approximately $1M per year. TKC Aerospace has been awarded two contracts totaling over $126 Million by the U.S. Department of State. The first contract, awarded 11 June 2009, is for the acquisition, maintenance, modification and initial provisioning for four aircraft to provide airlift in the Middle East. TKCA acquired the aircraft and immediately began an upgrade program ContrACts to equip them with Aircraft Survivability Equipment which We have grown the business from 4 to 7 contracts in the past consists of Missile Warning System, Counter Measures year. The contract for upgrading interceptor aircraft for the Dispensing Systems (CMDS) and special communications U.S. Border is moving along smoothly. The first three aircrafts systems. TKCA is also providing spares to support aircraft are progressing well in the modification program and we operations in Afghanistan. This program was completed by are currently working with the customer to enter the fourth February 2010. The contract was valued at approximately aircraft before the end of September. This contract provides $26M. The second contract is a $100 Million IDIQ contract to for modifying up to 10 aircraft at a price of approximately acquire and lease aircraft and provide Engineering/Logistics/ $9.5M each. Our operation out of Reagan National Airport Procurement Support. Under this contract TKCA will be provides the senior staff at our agency customer with performing a variety of acquisition and logistics tasks. This 5 safe and efficient transportation. This contract generates year contract will provide a variety of tasks that will enhance approximately $4.5M in annual revenues. In Florida, TKCA’s and grow TKCA’s past performance as we continue to move primary mission is to provide high quality, serviceable toward more non-8(a) commercial and open competitive aerospace ground equipment to the U.S. Air Force. This contracts. customer serves as the test and evaluation center for the Air Force air delivered weapons, navigation and guidance the Vision systems, Command and Control (C2) systems, and Air Force TKCA will be celebrating its sixth birthday in July. Our Special Operations Command Systems. Our team here knowledgeable staff continues working hard to grow our consists of 29 people, with an average of 26 years experience. business. Our vision is to be a family of small companies Annual revenue from this contract is approximately $3M. with over $100 million in annual revenues by 2015. We are Our other U.S. Air Force contract is operated out of our home proud to carry the Kuskokwim name and are committed office in Charleston, SC. This team sources, acquires, and to delivering aerospace solutions that maximize customer sustains a broad range of ground support equipment for the success. U.S. Air Force. The objective is to improve War fighter support, lower the cost to the government, and ensure continued utilization of small business manufacturers. This year’s orders to date are approximately $5M. 9 subsidiar y: Suulutaaq is a civil construction company participating in Suulutaaq had prospects to begin construction on a the federal 8(a) program. series of doctor’s office buildings in South Carolina, where construction was scheduled to begin in November 2009. The trAnsition PlAn oVerVieW project is currently held up due to unforeseen environmental Suulutaaq is entering its second transition year in the SBA issues. Suulutaaq has also been reviewing 8(a) competitive program. The past year produced approximately 7% of non- solicitations. 8(a) work; our goal was 15% for the first transition year. In Mid-March 2009, Suulutaaq, Inc. replaced its management We have modified our bid strategy to include contracts in the team, and is working to improve its strategic plan. Currently, $3-5M dollar range that would narrow the field of competition. Suulutaaq has projected a need of $6 million of non-8(a) work to meet the requirements for the SBA’s Transition loWer 48 ProjeCts Year One and Two (15% and 25% respectively). For Fiscal Suulutaaq is managing two large scale projects; one in Year 08, the 15% non-8(a) revenue would equal $947,000. California and one in Arizona, as well as more than a dozen Of this, Suulutaaq obtained $417,000 during 2008 and has smaller DeCA Décor jobs in the Western US. With USACE acquired an additional $446,727; leaving just under $83,273 Flood Control project in Napa, California is in its first year of to meet the 15% for transition year one. The management three and is projected to have potential gross revenue of team is utilizing its existing resources to the fullest extent. $65M over the three year period. The IOCC project in Tucson, Management is currently reviewing private industry Arizona is a $10M project that will be completed in early 2010. construction bids in Alaska, California, South Carolina and Both of these contracts were awarded late in 2008, which Arizona. Suulutaaq presently holds contractor’s licenses contributed to a dramatic shortfall of non 8(a) revenue. in Alaska, California, South Carolina, and Arizona, and does not foresee any issues with acquiring additional licenses if AlAsKA necessary for future business opportunities. Suulutaaq has Suulutaaq has an IDIQ contract in place with the Alaska recently opened an office in Charleston, South Carolina so Army Corp of Engineers and a MATOC with Alaska Army that we are able to submit proposals on the East Coast that National Guard. require local presence. Suulutaaq has also employed two longtime local contractors/developers to assist in procuring summAry both federal and private contracts. In the last quarter, The new Suulutaaq management team is taking action to focus Suulutaaq has submitted four proposals in the Charleston on increasing full and open bid projects in both the area. Suulutaaq’s bonding capacity will allow the company federal and private construction arenas. to submit bids on both Federal and private projects. This will allow Suulutaaq to meet and/ or exceed the SBA requirements Future non 8(a) reVenue until such time as Suulutaaq The new management team is reviewing projects that would graduates from the 8(a) program. include commercial construction in South Carolina, construction As typical in the construction work for municipalities and highway expansion; civil projects arena, Suulutaaq’s prospects for the USACE in California; and possible subcontractor work are subject to common for Kiewit. Suulutaaq has also made connections with other issues of funding and companies to subcontract work that would fill the non-8(a) timing, which can push requirement. Suulutaaq’s goal is that each project has potential solicitations out to gross revenue of at least $1-2 million. later in the year. 10 Positively Changing the Lives of Alaska Native Children The Kuskokwim Corporation is proud to publish Conflicting Landscapes written by Clifton Bates and Father Michael J. Oleksa.. Conflicting Landscapes is a catalyst for a productive conversation about collectively rethinking and restructuring the mission of Alaska schools, to assure the success and well- being of future generations of Alaska Native children. All Alaska Native parents, school board members, rural teachers and school administrators, as well as university professors, state officials and legislators are encouraged to read and consider seriously the message of this book. This book is about how our native schools were taught in the past, how they are taught now, and how it can benefit the lives of Alaskan children in the future. The writers of this book care deeply for the children, and offer some concrete ways in which the situation might improve today, and the next several years. The writers state, “We understand how hard it is to teach in rural Alaska. We need to face and understand the problems, not deny them, and then we’ll proceed toward resolution. We can prepare teachers better. We can develop closer with parents and community leaders. We can help schools become a positive place, together with churches, tribal cultural organizations, health care providers, state and federal agencies. We can build happier, healthier communities, where children grow up with a positive sense of their personal and cultural identities, and become productive citizens in the modern world.” The book is also available for purchase at both TKC’s offices in Aniak and Anchorage. TKC is proud to publish this book and looks forward to growth in marketing and distribution. Iyana was a deeply spiritual man, relying on his Faith to overcome cancer and the loss of his own children. In my own life, he always seemed to show up at the right time with the right words. One time I was running the dozer on the beach at Napaimute and started thinking about him. Wondering how he was doing. I turned my head to look before backing up the machine. There was Iyana standing there! Hmm, funny, how he showed up just when I was thinking about him. I believe there was more to the Man than just what we could see. 11 l a n d a n d re s o u rce s The most important asset to TKC Shareholders and the do n l i n C r e eK Corporation are the lands surrounding TKC’s 10 villages. TKC Donlin Creek LLC, a Barrick/NovaGold company, is looking is comprised of the 10 villages that have merged together to develop a potential gold mine 13 miles north of and combined resources and surface estate. Crooked Creek. TKC owns over 950,000 acres of surface estate in the middle Kuskokwim region of Alaska. The Regional Corporation, Calista Corporation, owns the rights to the sub-surface estate of this land. Generally, the surface estate that the Corporation has title to lies along the Kuskokwim River and its tributaries and streams from about 20 miles below the Village of Lower Kalskag to 20 miles above the Village of Stony River. The Corporation has an obligation to manage these lands for the benefit of the shareholders. The TKC Board of Directors is committed to the responsible development of TKC’s land and resources. Each year the Full Board of Directors identifies land goals in a strategic plan, and puts measures in place for accomplishing the goals. The Board has designated a 5 member TKC is the surface owner of most of the lands where the Land Committee devoted to addressing land proposed mine footprint will be located. Extensive exploration issues, and has sound land policies and drilling began in the early 1990s and has defined a large procedures in place that are continually gold resource estimated to be about 30 million ounces of updated and approved. gold. Significant challenges facing the mine development include power and infrastructure. TKC entered into an initial surface use agreement with the mine developers in 1995. While we have disputes with Donlin Creek, LLC over the agreement and the use of TKC lands, TKC continues our firm commitment to the Donlin Project. We are asking Donlin to meet us on fair ground to build a relationship that will be mutually rewarding for both parties. Iyana was also representative of the ever-shrinking group of people that lived the true old-style subsistence life. Traditional life in the Upper Kuskokwim was especially hard and Iyana’s stories reflected that. With a faraway look, he talked about hunger, the constant movement in search of food, some hard times. But the gleam would come back in his eyes as he told stories with pride about the ability to run down a moose on snow shoes or to eat good by snaring whitefish in the Swift River with nothing more than a willow pole. 12 geogrAPhiCAl inFormAtion system (gis) this unique settlement that puts more land control directly TKC implemented a full blown internal geographical into shareholders’ hands. Moving forward we are using this information system that allows for better land management model to accomplish our goals with land reconveyance to through mapping and imagery technology. We have the villages that have yet to complete 14(C)(3). recently utilized this technology for a public application of the mapping program that our shareholders and the public P e r m i t P r o g r Am can access on the web. We are proud to be on the cutting TKC continues to implement a permit program to protect edge of this technology, and share information about our and better manage our land and resources. TKC offers land and resources. The mapping site and land information several types of access permits; Recreational Use Permits, can be linked through our website for public use. Houselog permits, as well as Land Entry Permits. Land Entry Permits are granted on a case by case basis for project work Co m m unit y Pl Anning that promotes growth in our region or directly benefits TKC Under the section 14(C)(3) of the Alaska Native Claim Shareholders. TKC also administers a campsite program for Settlement Act, TKC is obligated to reconvey certain lands Shareholders. to our village’s for community purposes. A strong priority has been placed on finalizing these conveyances. As part of our permit program TKC has trained staff patrolling TKC is proud to have developed a unique model of privately owned lands to inform hunters of policies and the settlement with a combination of 14(c)3 and direct permit program during moose hunting season. The main transfer. The Native Village of Napaimute was the first responsibility of TKC patrollers is to provide information, to utilize this model by our thinking “outside the document trespass when necessary, and educate travelers box” and working together to come up with about TKC land policies. 13 o u r s h a re h o l d e r s At the end of 2009 the Kuskokwim Corporation had 3,025 it was “life estate” stock and could not be inherited or gifted. active shareholders. With the passage of ANCSA, TKC had When a Class B shareholder dies, his or her stock goes back 1200 original shareholders holding Class “A” stock. In 1994 into the corporation. TKC shareholders face a similar vote TKC’s shareholders decided it was important to bring the this April. The Class B stock authorized in 1994 ran out more next generation into the Corporation and voted to extend than a year ago. The TKC Board of Directors voted to place two thousand shares to children born after 1971, giving the additional stock option on the ballot for shareholder them rights to TKC dividends and voting rights. The new vote. TKC shareholders will vote on the issuance of another stock was “Class B” stock. Unlike the original Class “A” stock, 200,000 shares at the 2010 Annual Shareholder’s Meeting. s hA r eholder demo gr AP hiCs Active 18-35 Under 18 Residing in Ward 49% years of age 33% years of age TKC Villages 33% 37% 34% 60+ years of age Custodian 36-59 8% Not Residing in 18% years of age TKC Villages 25% 62% TKC’s shareholders consist of primarily Yupik Eskimos and Athabascan Indians. At this time the largest demographic age group is 18-35 years and 62% of shareholders are not living in TKC villages. This has been a growing percentage and is the highest of our recorded numbers, showing a trend towards moving to more urban areas. 2009 A nnuAl meeting in uPPer K AlsK Ag, Al AsK A George Morgan and Steven aka Bumboy Alexie Brystal Carey and Shaydene Morgan Lucy Kelila and Stephanita Kameroff 14 2009 shA reholder AWArd Winners Humanitarian Award ............................. Bob Aloysius, Kalskag “Bob believes children are the future. By his actions and words, he does his best to make sure the impression he leaves on them is respect for themselves, culture, heritage and traditional values; strength to see a better tomorrow and the belief that it can happen.” - Sophia Aloysius (Bob’s daughter), St. Marys Health Award .......................Bernice Heatherington, Kalskag “She is very dedicated and caring to her clients and is a professional in her ethics towards everyone. Health is not only physical needs but also emotional and spiritual needs that are not physically evident but needs to addressed and actively worked on.” - Dunia Morgan, Kalskag Education Award ........................................ Elsie Simeon, Aniak “Elsie is for the children attending school doing her best to make sure the kids get the best education. She also serves as a Board of Director for the Kuspuk School District, I am very proud of her she is doing a great job.” - Marie Kameroff, Aniak Non-Shareholder Award ..................... Eleanor Sanbei, Aniak “Eleanor is known for her beautiful beadwork and fur sewing also her delicious baked goods. Every year she donates her work to fundraising activities which include school events, the Aniak Winter Carnival and to the Church. She is always willing to teach the younger generation of her gifted talent.” - Darlene Morgan, Aniak I had the privilege of working under Iyana on the River for several years as a young kid and he continued to be a mentor right up to his passing early this year. Even before those good years of traveling the River night and day with him, we all knew who he was. Whenever the barge stopped in a village or he was just simply out traveling up and down on his own business, word would quickly spread around town, “Iyana’s here”. People would make a point of seeking him out wherever he was visiting to say hello and catch some news from up or down the River. “Where are the King Salmon?” “How’s the moose Upriver?” “You ever see Nixie & Margie?” “How they doing?” Kids would ask “Who’s that man?” The adults always responded, “Oh, that’s Iyana Gusty. He’s from way Upriver and he knows the River better than anybody”. 15 ku s ko k w i m e d u c at i o n a l f o u n d at i o n The Kuskokwim Educational Foundation (KEF) offers a general scholarship and specialized scholarships to any TKC Shareholder or descendents of a shareholder. KEF consists of (5) five Board of Directors who oversee the scholarship program which awards students funding for education whether for college or vocational training through the KEF scholarship program. mA ry morg A n WolF m emori Al sChol A rshiP Fu n d ni C K m e l l iC K me m o r iA l s Ch o l A r s h iP F u n d The purpose of the Mary Morgan Wolf Nick (Nixie) Mellick Jr. Scholarship was Memorial Scholarship Fund is to honor her formed to honor Nixie. Throughout his life, life by making a two or four-year scholarship he was a bush pilot, fur trader, lodge owner, available to a Native Student from the fishing guide, Native leader, businessman Middle Kuskokwim Region who is entering into a health- and historian. He has been described as particularly adept related field. Mary was a loving person who was, and will be at walking in both the Native and non-Native worlds. Mr. treasured by all that knew her. She was able to overcome Nixie Mellick studied business at Bowling Green University incredible obstacles, and pursue her dreams. She carried a in Ohio. KEF is honoring his memory with this scholarship to saying in her wallet that we can all learn from. It read, “I felt fund TKC Region shareholders and descendents in pursuit of charity enter into my soul and the need to forget myself and their degree in a Business and other related fields. please others: since then I have been happy.” n At u r A l r e s o u rCe e d uC At i o n s C h o l A r s h i P F u n d s u u lutAAq sChol A rshi P Fund This scholarship was created by a donation Suulutaaq (pronounced Soo-loo-dock) from Barrick Gold, and is available to any which means “Gold” in Yupik is a Small TKC shareholder or descendent who wishes Business Administration (SBA) certified 8(a) to pursue a career in the mining, industrial, or related fields. Alaska Native Corporation (ANC) general contractor created by a partnership between TKC Development and Nugget Congratulations to all our students with their outstanding Construction, Inc. (Nugget). Suulutaaq was created to provide educational endeavors throughout the year, through design/build, engineering, civil and marine construction, and the commitments they have shown through education. environmental remediation services to clients throughout Graduating from high school is not the end of their Alaska and the lower 48 States. This Scholarship is being education but they continue with higher offered to any TKC shareholder or descendents that are education to become prosperous leaders. pursuing a degree in the construction field and other related KEF recipients inspire our future students fields. Upon completion students will be considered for any to continue with college or vocational job openings with Suulutaaq, with preference given to those training after high school. Students that with leadership abilities. would otherwise have not had the opportunity to continue with their education were able to KEF held the 5th Annual Silent Auction with support of Kuskokwim in Anchorage November 12, 2009 which raised over Educational Foundation’s $7,000 for the scholarship fund. Many businesses and scholarship program. These individuals donated items for this special event. scholarships are from donations received from individuals, businesses, and corporate sponsors to KEF. 16 2009 sChol Arshi P re Ci P ients Kuskokwim Imagination Library Eunice Alexie Career Academy Children in 10 villages along the Derek Beans Yaqungviat Flight School Kuskokwim River will be eligible Pauline Boratko UAF-KuC Bethel Campus to receive a free book every month from Dolly Parton’s Anna Boyers University of Alaska Fairbanks Imagination Library, thanks to a commitment from the Jeannie Butler Chapman University Kuskokwim Education Foundation (KEF). Helena Cogan University of Alaska Anchorage Janeeka Corbett University of Oklahoma Working with Best Beginnings, KEF will underwrite the cost Ryan Cox Liberty University of the program and manage the database and enrollment. Levi Egoak University of Alaska Anchorage The decision to sponsor Imagination Library in its villages Sophie Ekolook Alaska Pacific University Alex Evan AVTEC represents a new direction for KEF, which until now has Samuel Guzauskas University of Alaska Anchorage funded only scholarships for post-secondary college and Amanda Hoffman Charter College vocational education. Imagination Library mails a brand new, Harold Huntingtom University of Alaska Anchorage age appropriate book each month to every child from birth Janelle Huntingtom University of Alaska Anchorage to age 5 who signs up for the program in their community, Caleb Kristovich North Idaho College regardless of family income. The Dollywood Foundation Melissa Kristovich George Fox University manages the system to deliver the books to the home. Megan Leary UAF-KuC Bethel Campus Allison McIntyre UAF-KuC Bethel Campus “For a relatively small investment, we can make a big Elsie Norback Charter College Pamela Notti University of Oklahoma difference in children’s futures. It makes good sense to Ellen Parker University of Alaska Fairbanks us to start our children on the path to literacy and love Janelle Shanagan Career Academy of reading as early as possible. Children exposed to books Sydney Sherer University of Idaho early on are more likely to go to college later.” Bobby Simeon Alaska Technical Center - KEF Board Member and TKC CEO Maver Carey Francine Simeon University of Alaska Fairbanks Thecla Takumjenak Indiana University The KEF mission is to contribute to the future of its region Katya Wassilie University of Alaska Fairbanks by providing effective educational assistance in order that There were 29 scholarships awarded students obtain the tools, knowledge and skills to become totaling $30,750 for the 2009-10 school year. successful and contributing members of their communities. One of the greatest influences Iyana had on me happened two years before I had started college. Like most young men, I wanted to be home running around hunting, trapping and fishing. It was October while we were pumping fuel in Aniak. Iyana and I were sitting on the bow of the barge chatting and telling stories. After a while he asked if I was going back to school. I said ”No, I don’t think so. It’s not for me. I just want to keep working on barges.” Iyana looked at me hard and spoke the words that had a profound effect on the rest of my life. He told me “No, -You go back to school. You need your education. Go finish. Then come back home and help the People”. Those words stuck hard - I did go back to school. I finished. I always tell my kids and anyone else that will listen: Just because you have a formal education doesn’t mean you’re smarter than other people. Some of the smartest people I’ve known didn’t read or write English, but they could think, make something out of nothing, persevere through anything - Iyana was one of them. 17 t kc b o a rd o f d i re c to r s leo mor gA n K At h l e e n h oF FmAn d u n iA morg A n mon A morroW hermA n morg A n A ngel A morg An Chairman Vice Chairman Secretary / Treasurer j Ay l e n e WA s s i l i e K Am e r o F F je FF nelson lorr A ine egn At y mArC e simeon Peterson-nyren He taught us so many things, but I think most important was the respect he showed for the people from the head of the River to its mouth and the respect they showed him in return. Through Iyana I could see that we really are one people connected by the common bond of the water the flows before us. Sometimes we don’t always agree on issues such as fish and game allocations for different parts of the River or how to build an economy for our region, but Iyana, a man comfortable in Nikolai or Nunapitchuk, through the quiet demonstration of the way he lived, was able to show us that we can respect each other, get along, and that we can compromise for the greater good. In later years, I watched him use this skill on the Kuskokwim Corporation Board of Directors, to keep meetings focused on what was really important - the good of the People. 18 co m m i t te e s o f t h e b o a rd E x E c u tiv E commit t EE L An d co m m i t tE E Functions include monitoring and recommending changes Functions include reviewing in detail 14(c)3, ensuring TKC to TKC’s stock and bond portfolio, retain the service of an has sound land policies governing Corporation land use, investment brokerage firm and review all issues which come executing transactions involving TKC lands per limits of before the Committee. Board policy and reviewing all land uses which come before Leo Morgan ...............................................Chairman the Committee. Kathleen Hoffman .................................Vice Chair Mona Morrow Dunia Morgan..........................................Secretary/Treasure Herman Morgan Marce Simeon Jeff Nelson Wassilie Kameroff Lorraine Egnaty Kathleen Hoffman Au d i t commit tEE Functions include providing oversight of TKC’s internal P r ox y/c rEd E n t iA Ls co m m i t tE E control structure, auditing practice and performance. Functions include certifying candidates running for election Angela Morgan to the TKC Board of Directors, reviewing and ruling on any Lorraine Egnaty challenged or questioned proxies received prior to the Dunia Morgan annual shareholders meeting. Leo Morgan Marce Simeon Dunia Morgan t kc s t a f f mAVer C Ar e y r ACh e l K l e i n d e l C l A rK tA r A-jo broWn C heryl tAnner ni C hol A ruedy President & CEO Land Manager & Chief Financial Officer Senior Accountant Accounting Assistant Human Resource Chief Operating Officer Manager dA i s y Ph i l li P s AmAn dA s Ag m o e n sA lly hoFFmA n renee Frederi CK s sAm boyle Marketing Assistant Corporate Compliance Aniak Office Manager Suulutaaq, President TKCA, President Specialist 19 In Memory Alice Evan Ignatti Ignatti Andrew Alexie Jr. Joseph Nicoli Jr. Annie Waskey Malania Nash Carolyn R. Crane Mezak Kameroff Sr. Doris M. Grato Nick Bobby Sr. Exenia Zaukar Patricia Simeon Floyd J. Nook Pete Alexie George C. Gregory Pete Zaukar Sr. Peter E. Wise Philip W. Simeon Sr. Rodney A. Sakar Sarah Askoak Simeon Boots 20 A nC h o r Ag e oF Fi Ce 4300 B Street, Suite 207 Anchorage, Alaska 99503 Phone: 907-243-2944 Fax: 907-243-2984 Toll Free (in-state only): 1-800-478-2171 l An d d ePA rtm e n t P.O. Box 227 Aniak, Alaska 99557 Phone: 907-675-4275 Fax: 907-675-4276 Toll Free (in-state only): 1-800-478-4275 w w w . k u s ko k w i m . c o m