Community Leader Harvey Shields

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1 TotemTimes february 2013 Community Leader Harvey Shields Ask Harvey Shields about his claim to fame, and you won t get an answer. At least, you won t get just one answer. Clan leader, dance leader, board officer, Navyman, mayor, vice mayor, handyman - Harvey has been all these and more. Ask him which roles make him most proud, and he ll tell you without hesitation: Son, brother, friend, community member. continued on page 3 A November Celebration By David Landis On November 10, 1973 six residents of Saxman, Alaska, became the incorporators of Cape Fox Corporation when they signed the Articles of Incorporation document. The Articles then became the original organizing document for Cape Fox Corporation. Upon signing this document and sending it the Alaska Department of Commerce, Cape Fox Corporation was recognized by the State of Alaska to officially start business as the continued on page 4

2 A Message FROM THE CEO There are always challenges for the Management Team of the Cape Fox Corporation. Recently, it seems those challenges have become even more significant as nearly 40% of federal vendors (such as Cape Fox Corporation) are experiencing a drop in revenues according to a new survey by Set-Aside Alert, a federal government contract information service. As contractors face uncertainties in the new budget year, CFC may find itself in the same situation. A drop in revenue from our governmental contracts could impact our bottom line. According to Set-Aside not only are there falling revenues, but cost cutting and patterns of uncertainty will continue until the Federal Government can actually set a budget and contracts can be awarded or renewed. The office of Federal Procurement said that there was a 4.5% decrease in procurement of goods and services during the past year, from $537 billion to $513 billion. Federal contracting specialists, according the publication, have noticed the pace of contracting awards has become sluggish since October 1 when the new fiscal year began. And with $109 billion in automatic budget cuts set to go into effect unless Congress and the White House can come to some agreement on how to avert it, the prolonged uncertainty will continue to take a toll on profits. There is clearly a slowdown and long delays in making awards. RFP s are being delayed and awards delayed because of uncertainty of funding, said the publication. Some call this soft sequestering, which means a design of automatic spending cutbacks by the Federal Government, or an amount of funding held back and not given to the agencies to which it was originally intended. Community Leader continued from p. 1 Harvey served on the Cape Fox Corporation board of directors in the 90s. Born and raised in the area, he says he s seen many changes in Saxman and Ketchikan over the past six decades. Housing has grown and improved, the area s population has grown and with it the village s infrastructure. Cape Fox has played an important role in that growth. I feel Cape Fox Corporation has grown and been there for the shareholders and the community, and it s much appreciated, Harvey says. Cape Fox has been supportive of the young people in helping them understand their culture and so understand themselves and where they come from. The internship program is important for the younger kids. Harvey thinks the Tribal House was a particularly significant contribution Cape Fox made to the community. He recalls the days when his mother, Martha Shields, who also served on the CFC board, was the leader of a dance group. Her dedication kept the group active, and the corporation respected her commitment to this important part of the Tlingit culture. How will it affect Cape Fox is difficult to say, but as your CEO, I will ensure that our management team stays on top of ongoing events. We will monitor the situation through all of our subsidiaries and in particular through our business development efforts. We will endeavor to ensure we can put forth winning contract bids by our outstanding team that will maximize revenue and profits. However, there may be tougher, if not different times ahead. And I feel it is prudent to inform you, the shareholders, what your Corporation faces in the year ahead. Michael E. Brown, CEO TotemTimes february

3 There were times the dancers didn t have a place to dance, and we d be dancing in the bars for the tourists as one way of raising money to attend Celebration in Juneau. The corporation didn t like seeing us dance in the bars because we had kids performing there with us, so they worked with the city to build us a tribal house to dance in. That project was just one of many Harvey has seen shape Saxman over the years. After serving on the city council, Harvey was elected mayor of Saxman in 2011, a position he held for two years before transitioning the position he now holds as vice mayor. During his tenure, he s been involved in securing government funding and support for community infrastructure projects related to the harbor and port, and the new water plant among others. He is currently part of a group of community leaders who will seek legislative funding for the Mahoney Lake Hydro Project, which will provide enhanced capability to provide electric power to Ketchikan and outlying areas in support of future development. Harvey has also been on the Saxman IRA (Indian Reorganization Act) council for 15 years. That group, along with the City of Ketchikan and Cape Fox Corporation, have worked well together, in Harvey s opinion. We put our heads together to make things happen. Harvey credits his mother for instilling in him the importance of contributing to the community. Martha Shields passed on the responsibility of leading the Cape Fox dancers to him and his sister, Sarah Abott. Together, they have been leading the dance group for about 15 years. They, along with the Cape Fox dancers, will host the 2014 Celebration, which is a first for the group. They will host all the dancers in Southeast, which can total 2,000, and will lead the opening and closing ceremonies of the 3-day event, which attracts up to 30 dance groups. More than 70 Cape Fox dancers attended the last Celebration, and fundraising is underway to send as many dancers as possible next year. Dancers pay their own way with fundraising revenue paying for lodging. Anyone interested in financially assisting the non-profit Cape Fox Dancers should keep an eye out for their Fry Bread and other local fund-raisers, or contact Harvey directly at (907) for a tax deductible donation. Recalling his mother s legacy makes Harvey consider his own. Says Harvey, I need to start training the younger ones to take my place. I want to pass on the songs and dances of the Cape Fox people. That s what was handed down to us. Teach the younger ones so they can carry on the culture. Be involved in the community, in politics, but most important, carry on the traditions of the culture. Another important message Harvey carries is caution about the debilitating effects of alcohol, something he s experienced and overcome. Drinking was my downfall, says Harvey. I stopped drinking more than 25 years ago, and it was a big starting point of my life. I had to let it go so I could be the man I am today and be someone in the community people can look up to. Now, I am all about helping the community. I don t ask for anything. I just want to be supportive using what I learned from what I ve gone through. I say: Young people, step forward! Cape Fox Dancers at the 2011 CFC Annual Meeting 3

4 Celebration continued the village corporation for Saxman according to the laws and regulations of the State and the Alaska Native Claims Settlement Act, which was passed in Thus was the start of Cape Fox Corporation, which continues in business today, nearly 40 years later. On the exact day of CFC s 40th anniversary, we will be hosting a celebration of the company s formation, growth and success. And we want you to join us! We are planning a grand party on November 10 at the Ted Ferry Civic Center in Ketchikan, complete with a prime rib dinner for 450+, the unveiling of artwork that was commissioned for this occasion, and much more. There will be songs and dancing, gifts, reunions with old and new friends, and traditional customs that we hope everyone will enjoy. In November, after all the busy summer activities and hard work, we hope all of you will be ready for this big event before the holiday season starts up. The CFC Board of Directors has been the driving force behind preparing for this project, and has provided leadership and direction to our management team all along the way. Gabriella Daniels, the 40th Anniversary Coordinator, remarked that There have been so many achievements and memories during the past 40 years. If anyone has pictures or other memorabilia from the old days of Cape Fox, we would love to use them for the anniversary party. We will also be keeping this anniversary celebration in front of you in the Totem Times throughout 2013, with updates on the event as they firm up, and afterwards with an album of photographs and memories. Congratulations to each and every shareholder on this memorable milestone. Above: (L-R) Larry J. Johnson, Irene B. Johnson, William T. Olsen, Eugene H. Trout, and William K. Williams. The photo is annotated Annual Meeting Nov. 77, which corresponds archived CFC records of the meeting held on November 19, 1977 at the Saxman Community Hall. This was during the point in Cape Fox Corporation s history when Sealaska Corporation s ANCSA mandated 5-year oversight was ending, and many of the Board s decisions were related to land selection and the first logging contracts. Right: Cape Fox Corporation s first building in Saxman, which was near the present site of the Edwin C. DeWitt Carving Center. TotemTimes February

5 The White River Road Sale In the 1980 s, Cape Fox Corporation (CFC) hired contractors to build a network of roads through newly acquired ANCSA land in the White River Valley, George Inlet, and Shelter Cove areas for the purpose of harvesting timber. The development of the White River Valley road allowed access to a lumber sort yard in George Inlet, near the mouth of White River, while also connecting to Ketchikan s existing road system. The George Inlet s Coon Cove and Shelter Cove roads were not connected to Ketchikan s road system. Starting in 2003, the Alaska Mental Health Trust Authority (AMHTA) and the U.S. Forest Service (USFS) were building logging roads in their own selected boundaries. AMHTA roads connected to the northeast part of existing CFC tracts. Eventually AMHTA reached their boundary at Leask Cove, the upper end of George Inlet. At the same time, the USFS roads ran south along upper George Inlet, from the Shelter Cove road system along Carroll Inlet. In 2007, CFC was approached by the Alaska Department of Transportation & Public Facilities (DOT). DOT requested an access route through the White River Valley, as part of an overall project to acquire public right of way and build an additional segment of road to connect all these roads together. Connecting CFC, AMHTA, and USFS roads would result in an overall network of roads that would tie into the Ketchikan road system. surrounding CFC land would gain substantial value through improved access. CFC was not in favor of a donation but willing to consider an offer. After lengthy negotiations, a price of $2,500,000 was agreed upon for a section of the White River Valley road corridor. The following aspects of this sale are very positive for Cape Fox Corporation and its Shareholders: A $2.5 million windfall for any purpose the Corporation desires Significantly reduced cost and liability for the upkeep of the White River Valley corridor A wider, smoother road with gated access to exclusive CFC and shareholder properties Increased value of all corporation lands in the White River tract Increased value of all corporation lands in the Coon Cove and Salmonberry tracts Increased value for all Shareholder homesite lots, which will be more accessible The sole detractor from this sale is that the shareholders will not have exclusive use of the improved road. That being said, the road will be wider and straighter, there will be access to new tracts of land like: Coon Cove tract, Salmon Berry tract, and increased access to George Inlet tracts; newly accessible CFC lands and roads will remain private and will be protected and secured behind a gate. Initially DOT requested a donation of the existing White River Valley road from CFC, reasoning that the In the end, all these positive outcomes not only benefit the Shareholders today but allow benefits for generations of Shareholders to come. 5

6 Chris Jones Named CEO of Cape Fox Government Services Chris Jones was appointed Chief Executive Officer of Cape Fox Government Services in November of He is responsible for the long-term planning and direct supervision of multi-million dollar federal contracts involving training, technology solutions, and administrative service support. Jones has more than 18 years of progressive technical, business development and program management expertise in several major industries. As a valued engineering leader in the DoD IT industry, his ability to champion technology concepts that carry significant operational impact have been nationally recognized for their importance to the DoD community. Jones is a graduate of Midland University and has held key leadership positions within several personal and professional organizations across the country. The Saxman Group The Saxman Group wrapped up 2012 with some gains and some new beginnings. Our flagship company, the Cape Fox Lodge, improved its net income by a healthy $200,000 over the year, as well as undergoing a steady program of addressing deferred maintenance. On the Cape Fox Tours front, Manager Frank Seludo has turned a profit in 2012, which has been helped by the improving economy, and especially by increased numbers of Ketchikan/Saxman visitors. Ketchikan Title Agency continues to be a small but steadily profitable subsidiary, and in December of 2012 moved from downtown to the Plaza Mall, which we expect will result in even more traffic through the front door. Finally, we have a new kid on the block with Cape Fox Facilities Services. Our new maintenance and handyman company is building a customer base and controlling expenses, experiencing the normal range of start-up challenges and successes that we would expect. We are proud of the fact that this company began right here in Saxman with Shareholders in leadership and employment. Cape Fox Corporation P.O. Box 8558 Ketchikan, AK 99901

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