Washeteria re-opens after five-year break

Published on December 17th, 2009

By RON LYNN

When Anaktuvuk Pass's community washeteria was closed in 2004 by the North Slope Borough due to high costs and continued financial losses, the community was devastated.

The washeteria was a critical resource for most homes without washers or dryers. Even those with washing machines and dryers had found the cost of energy needed to run the machines very expensive and used them sparingly. Many residents washed clothes by hand, but drying clothes in the low temperatures of Anaktuvuk Pass was difficult.

Local teachers and tourists also depended on the washeteria. Anaktuvuk Pass is located within the gates of the Arctic National Park and Preserve and there is not one restroom facility within the park. Visitors fly into the village and by the time they return for the flight home they badly needed the washeteria facilities.

Tribal leaders were determined to reopen the facility, and it soon became a very high priority. However, the washeteria posed a commercial challenge. The tribal council had never operated a business. Its management experience was limited to a few small grants. Today, thanks to the Inupiat Community of the Arctic Slope, a regional tribal government based in Barrow, the washeteria was re-opened in 2009.

Director Price Leavitt Sr. arranged for collaboration between the Nagsragmuit Tribal Council and the North Slope Borough and brokered a deal to reopen the facility. ICAS also provided a business coach to mentor and monitor the grant project. Accounting training was provided onsite to the local manager by the University of Alaska Fairbanks.

Today the washeteria is the first for-profit enterprise owned by the tribal council. The North Slope Borough has rented out the facility to the tribal council for $1 annually for five years. Start-up operating funds in the amount of $130,000 came from the Administration for Native Americans in 2008 through a national competitive grant award process and $114,200 for major repairs came from the National Petroleum Reserve Act grant fund administered by the North Slope Borough. An additional $25,000 came from the Arctic Slope Regional Corp., which was used as in-kind matching funds for the ANA grant. Inupiat Community of the Arctic Slope wrote the grant applications and coordinated the administration and management of grant funds. ICAS also provided accounting training for village staff in order to manage financial transactions. The grant funded enterprise has funded one full-time job and several limited part-time employment opportunities.

The tribal council is now completely responsible for the washeteria business and must ensure it can support itself after the grant expires. If it doesn't make enough money, it could fail and close. A number of monthly expenses must be paid out of profits when the grant ends, the largest being diesel fuel, which is currently at $7 per gallon and costs $35,000 to fill up on. According to the lease, adequate insurance will be provided by the lessee and all repairs are the responsibility of the tribal council. The building must be maintained in good condition at all times.

Because of the expense of running the washeteria, the council decided to build a small store inside the washeteria to generate extra income by selling soda, juice and phone cards as well as laundry soap and laundry-related items.

The cost to use the washeteria is $4.50 for the washer, $5 for the dryer, $3 to shower, $3 to sauna and $1 per gallon of water over one gallon.

A request to extend the washeteria's grant for three months until Dec. 30 was approved by grant officials due to start-up delays caused by malfunctioning plumbing. Several pipes burst during the first winter months since adequate maintenance hadn't been provided for five years.

When the grant ends in December, the business looks to be on track to be self-supporting based on sales and wonderful community support.