Radical Cuts
ND’S HIGHER ED SECTOR CONTENDS WITH DEEP FUNDING SLASH



ND’S HIGHER ED SECTOR CONTENDS WITH DEEP FUNDING SLASH
On May 1, 1910, brothers Odin and Gerhard Stenehjem opened Farmers State Bank in Arnegard, ND with $10,000 and a dream. Over a hundred years, three states, and 26 locations later, Steve and Peter Stenehjem are deeply committed to continuing their family’s legacy of stability, safety, and community for all of First International Bank & Trust’s clients – which is why they are investing in a new landmark facility in Rugby to serve the region for generations to come.
FIVE colleges delivering top return on investment.
FIVE colleges delivering top return on investment.
HUNDREDS of options for easy credit transfer to four-year universities, and technical degrees toward in-demand careers in two years or less.
HUNDREDS of options for easy credit transfer to four-year universities, and technical degrees toward in-demand careers in two years or less.
THOUSANDS
in tuition savings, and $1,500 per year tuition grants available for many students.
THOUSANDS in tuition savings, and $1,500 per year tuition grants available for many students.
At a North Dakota Community College, students can afford to follow their dreams.
At a North Dakota Community College, students can afford to follow their dreams.
ndcommunitycolleges.info
ndcommunitycolleges.info
10 years of
At Commissioning Solutions, Inc (CxS), we deliver success to our clients’ projects by providing professional, detailed mechanical and electrical commissioning. Since 2007, our clients have received the full attention of professional, knowledgeable commissioning agents through every phase of their projects. With licensed mechanical engineers, electrical engineers, fire protection engineers, NEBB certified agents, BCxA certified agents and LEED accredited professionals on staff, we strive to provide our clients with the highest quality of commissioning services.
We take pride in going above and beyond for our clients by spending the time to verify each item. Each deficiency item, or variance in construction from the design, is individually tracked until a satisfactory resolution has been provided. We send each deficiency item back to the Contractor to be reworked, then the Contractor signs and dates each item when they have fixed the problem. This is an important step to ensure re-work is completed. As commissioning agents, our responsibility to our clients is to make sure all components are installed correctly.
Banking and finance are on the editorial calendar as focuses for this month’s issue, but they became a running theme, beyond the borders of the feature article dedicated to them. That wasn’t intentional; they’re just tremendously relevant right now.
While the financial outlook for North Dakota gets continuously worse, the effects are far-reaching. Everybody who’s paying attention knows oil and ag tanked at the same time. If we’re aware of that, we’ve no doubt heard that it means revenue from sales tax is down significantly and the general fund is floundering. And nobody has missed the well-publicized news about higher education cuts.
Why higher education? The feature on page 28 delves into that, with input from the North Dakota Office of Management and Budget, the chancellor of the North Dakota University System and a couple of higher education institutions. Valley City State University filled us in on the detailed process of deciding whom or what gets cut, and how the school plans to help any laidoff employees find new jobs. I wrote a little longer on that feature than I intended to, but the topic warrants it.
The actual banking and finance feature focuses on business loan consolidation. The experts we talked with share their insights into when and why businesses explore options to lower payments, simplify payments or extend the lives of loans. Again, oil and ag markets come into play, prompting cycles in consolidations, too. It starts on page 32.
That’s just a taste of the news and trends reported in these pages. Enjoy. PB
PUBLISHER KORRIE WENZEL
AD DIRECTOR STACI LORD EDITOR
LISA GIBSON
CIRCULATION MANAGER BETH BOHLMAN
LAYOUT DESIGN, AD DESIGN JASON MAGSTADT SARA SLABY KRIS WOLFF
Prairie Business magazine is published monthly by the Grand Forks Herald and Forum Communications Company with offices at 375 2nd Avenue North, Grand Forks, ND 58203. Subscriptions are available free of charge. Back issue quantities are limited and subject to availability ($2/copy prepaid). The opinions of writers featured in Prairie Business are their own. Unsolicited manuscripts, photographs, artwork are encouraged but will not be returned without a self-addressed, stamped envelope.
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ADDRESS CORRECTIONS
Prairie Business magazine Box 6008 Grand Forks, ND 58206-6008
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ONLINE www.prairiebusinessmagazine.com
Over the past several years, companies have come a long way in recognizing the need for family-related leave and flexibility benefits in the workplace.
But most of the emphasis has been on working mothers, as opposed to both mothers and fathers. Working mothers are typically afforded flexibilities within the workplace that working fathers are not. Although this follows traditional trends from years past, it is a highly outdated practice. Both men and women are parents and they deserve equal treatment in the workplace.
It’s important to evaluate all workplace practices and policies to ensure they not only comply with laws and regulations, but also that they are reflective of their current and desired work culture.
Companies of all sizes should take the time to evaluate their own leave and workplace flexibility practices and policies to determine what enhancements or equitable improvements could be made to further support their employees while still allowing their businesses to grow. Use this checklist:
Does the company allow or afford some flexibility in the work schedule that allows parents (both men and women) to get their children to day care or school each morning? Are they offered an opportunity to ensure their children are where they need to be and taken care of during the workday?
Does the company allow employees to utilize sick leave for their children? Are those hours limited to a certain number and tracked by payroll? If yes, reconsider this practice and evaluate what it accomplishes for the company and for the employees. What does the leave request process look like? Does the company offer a supportive approach to family-related leave requests or are requests for time off met with irritation and annoyance?
Many activities occur for children during the work day. Do you afford employees an opportunity to utilize their leave to attend these mid-day activities or to take care of their child’s transportation to and from various activities?
Consider implementing a parental leave policy that is equitable to mothers and fathers in the workplace. These types of policies can have a positive impact on career prospects from the recruitment standpoint, and increase overall retention within the organization.
Does the company have a work culture that supports employees that are parents? Is it frowned upon to be gone if children are sick? Or is it accepted and supported by leadership? If leadership wants employees to be active parents, engaged in family as well as work, find ways to communicate that with the staff.
When companies allow appropriate leave and flexibility for their employees that are parents, they absolutely benefit from that. In fact, everyone benefits. The company increases its chances of retaining that employee. The employee will be happier. Happier employees are more effective and efficient in their roles. They are more likely to stay engaged in their work. They will offer more creative solutions to business challenges and add more value. They will be more productive and will recruit other top talent to join the company. When a company is able to see the big picture, it puts them in a position of reaping large rewards. PB
Tracy Clark, Interim President, White Earth Tribal and Community College
Associate Professor, Social Work, MSUM | Social Work and Criminal Justice, 1993
Being in an environment where deep critical thinking was not only valued, but also required, was very transformational in discovering who I am.
Transforming the world by transforming lives. Read more about leadership from MSUM alumni at mnstate.edu/leaders
At North Dakota State University, our engineering students are taught to think of solutions to the issues challenging society. Our mission as educators is to create the engineering leaders who will have a set of capabilities the industry needs for the future.
Some say we are at an important pivot point in the quality of life on the planet. The grand challenges — a series of societal problems identified by several national initiatives — focus on sustainability and the conditions that people will have to live with in the future. Our students have the opportunity to do something about those challenges.
Last summer, the NDSU College of Engineering joined the National Academy of Engineering Grand Challenge Scholars Program. Among the challenges identified in the program are making solar energy cost-competitive, engineering better medicines, providing access to clean water, ending extreme poverty and hunger, securing cyberspace and advancing personalized learning tools.
The good news is that our faculty and researchers are already tackling most of these challenges. More of our students will now join them in the lab and in the field. Twenty scholars per year are
selected to become part of the program. They will be paired with a faculty mentor to conduct research, take some classes relevant to their grand challenge and be part of experiences that will mold and direct them toward leadership in solving the complex engineering issues facing society.
The program components are:
A research experience related to a grand challenge. An interdisciplinary curriculum that prepares engineering students to work at the overlap with public policy, business, law, ethics, human behavior, risk, medicine and the sciences. Entrepreneurship to prepare students to translate invention to innovation and to develop market ventures that scale to global solutions in the public interest.
A global dimension that develops the students’ global perspectives necessary to address challenges that are inherently global as well as to lead innovation in a global economy.
Service learning for developing and deepening students’ social consciousness and their motivation to bring their technical expertise to bear on societal problems.
In addition, our program will focus on developing the leadership skills in demand by employers. Research is a lifelong skill and having a global awareness is vitally important, but we also want to prepare students to be ready and capable to step into leadership roles. Moreover, the program stresses experiential learning rather than traditional classroom learning.
More than 9,000 of our engineering alumni live and work in North Dakota, South Dakota and Minnesota. Our students are in demand, and employers ask us to prepare students to be well-rounded, professional engineers. They want employees who are uniquely qualified and motivated to address the most challenging problems we face.
The scholars program is a natural fit for our college’s mission to produce creative and innovative graduates and research to meet the changing needs of a global society. PB
Gary Smith DEAN AND PROFESSOR NORTH DAKOTA STATE UNIVERSITY COLLEGE OF ENGINEERING FARGOWhen the Kilian Community College Board of Trustees voted in 2015 to close the Sioux Falls school, the decision had a broad and immediate impact. As the college’s president at the time, I was tasked with creating and executing the crisis communications plan.
The next day, I met with faculty, staff and students to explain the decision and what it meant for them. There were key donors and business leaders to notify, and I did several media interviews to assure our many stakeholders of an orderly and responsible closure.
Companies of all sizes and all industries should be prepared for when — not if — a public relations issue arises. And they should start by preparing their best key message for that worst possible moment. Once a business has defined what differentiates it from the others and what is important to it, executives should communicate that clearly to all of their employees. Everyone should be speaking the same language. That message will play a vital role.
Before a crisis does arise, know who the spokesperson is. Who will handle media questions? More important, is there an easily accessible method for media to contact the business? Perhaps an email address specifically for media requests on the website? As we say at Media Minefield, “no comment” is still a comment, and it usually makes you look guilty.
Mark Millage REGIONAL DIRECTOR MEDIAWhen faced with a PR crisis, the most important part will be how the business responds. Do not be afraid to consult a crisis communication expert. The public, customers, competition and business partners all will be watching. How well, and even how quickly, a company responds will determine how much damage a crisis will have for its brand and its future.
In a PR crisis, we tell our clients the best course of action is to take responsibility immediately. But that typically isn’t good enough. It’s also important to outline what will be done differently in the future. How will the company prevent this from happening again? Why should customers, clients or business partners give it another chance? Accountability and action steps are key in overcoming a crisis.
The final, most important part is follow-through. Once action steps are outlined, the company must adhere to them. Its reputation depends on it.
A PR crisis does not have to be devastating, and most companies are able to bounce right back. But a series of crises will undermine a business’ credibility, and as the old saying goes, “Fool me once, shame on you. Fool me twice, shame on me.” It will always be important to learn from mistakes.
In today’s world with social media, camera phones, realtime reviews and a 24-7 news cycle, whether a company is in the financial or education industries, is a nonprofit or a Fortune 500, now is the time to make sure it is ready for a crisis. PB
JLG Architects is a huge force in its industry. Veteran Board Member and Architect James Galloway discusses his career and the evolution he’s seen in architecture and design.
I joined JLG in September of 1996. My wife and I just had our third child. Our oldest was getting to be school age and we weren’t happy with the school options where we lived. We are both from small towns in North Dakota and Minnesota — I’m from Park River, North Dakota, and my wife, Pam, is from Roseau, Minnesota. I was working for a great firm in Minneapolis, but we thought we should see if there were any good architecture firms in a smaller community closer to home. On a whim, I responded to an ad from Lonnie (Laffen, co-founder of JLG Architects) and the rest is history.
Lonnie had just landed a very large project — the Alerus Center in Grand Forks — in a partnership with Schoen and Associates, and they needed someone with some big project experience. I was a little reluctant to move to Grand Forks, thinking that after the Alerus Center, my career would be destined for roof repair and porch additions. Nothing could be further from the truth! I have had an incredible opportunity to work on a huge variety of project types and they have all been awesome. JLG was particularly attractive because it was so different from my previous big firm experience. When I joined in 1996, I think there were five employees. Today, we are north of 100 employees.
There were not a lot of job opportunities when I came out of college in 1988, and I was fortunate to get hired at Hansen Lind Meyer in Iowa City, Iowa. At HLM, I was thrown into the deep end and I learned a ton during my three years with them. Then I had the opportunity to move to Minneapolis to be closer to home, but also to work at my aspirational firm — HGA. It was so awesome working at HGA. They are still one of my favorite design firms to follow. I met so many wonderful people there. The principal I worked under, Gary Nyberg, has had the most profound impact of anyone I have ever met in my career. What a great guy.
My mom was an artist and my first love was art. I also had an outlet for my artistic/drawing passion. In high school and college, I had a cartoon strip that was published in the school newspaper. In retrospect, I appreciated the opportunity to be a little wacky. But I didn’t think I could make a living at it, so I stumbled upon architecture as a profession that incorporates art and science. Growing up in Park River, I didn’t know what architects did. Now that I have been doing it for nearly 30 years, I can’t imagine ever doing anything else. I love it.
Q. A.
That is a tough call for me. Each project is so different, the challenges are different, the context is different, so it is really hard to pick a favorite. But I will. You can see in my previous answers the variety of projects we do at JLG. My all-time JLG favorite is a 96-square-foot project designed by Joel Davy — the Roberts Street Chaplet in Fargo. It is so simple, clean and practical.
After the chaplet, my top five would be:
University of North Dakota School of Medicine and Health Sciences building in Grand Forks, which I designed UND Gorecki Alumni Center in Grand Forks, which I designed UND’s Wilkerson Commons in Grand Forks, which I designed Loretta Building in downtown Fargo
Watford City High School and Event Center in Watford City, North Dakota I have to pinch myself sometimes to be able to be involved in so many awesome projects.
We made a strategic decision years ago to be a firm that outlives its original founders. It seems many architecture firms get to a point when the original founders retire or try and sell their firm and it completely disrupts the lives of all their employees. We didn’t want to do that. We wanted to be a legacy firm that would continue on for many years. Making that decision, to be a legacy firm, brought great clarity for us as a firm that we need to continue to grow. Now that we are 100 percent employee owned, I think JLG will be around for a very long time.
I think the boom is a result of a convergence of several factors.
First, we hire great people with a passion for design and we turn them loose — that translates to delivering great projects. We work very hard to continue to deliver the very best service and that is huge part of our brand.
Second, we have not been afraid to take calculated risks over the years. We are unlike any firm I know of — we have 12 offices and 100-plus employees in a variety of large, medium and small markets. It sounds kind of crazy but it is working.
Third, a little oil boom is pretty good for business. We had the foresight to be situated in markets and building types that have grown significantly with the growth of the energy industry in North Dakota.
This one is easy: technology. When I started 29 years ago, we produced construction documents by drawing on paper — or mostly Mylar, to be more accurate — with graphite pencils or pen and ink. Documents took much longer to produce. Technology in the design profession today is incredible. The computer-generated models contain so much data and are able to convey tons of information.
For more than 16 years, business and community leaders have turned to Prairie Business as a valued partner in their overall business-to-business marketing and communications strategy. Prairie Business is your window into business and industry in North Dakota, South Dakota and western Minnesota. Whether you are involved in higher education, health care, finance, architecture and engineering, agribusiness, energy, economic development or construction, we’ve got you covered.
GRAND FORKS — Randy Newman, CEO of Alerus, refers to the events of 1997 as “the flood and fire of Grand Forks. … Grand Forks had the flood, Alerus had the fire,” he says. Alerus, which at the time was First National Bank North Dakota, lost three buildings — 100,000 square feet — to the fire that ravaged 11 downtown structures during the flood.
Customer files were lost, buildings that had flood damage but still stood weren’t even accessible for at least a week, he says. All the bank’s business had been conducted in downtown Grand Forks — accounting, legal and banking. “It had a significant effect on our customer base,” Newman says.
As floodwaters entered Grand Forks on April 19, 1997, First National Bank North Dakota was rerouting its main operational systems to Fargo, Newman says. The bank rented out a hotel in Fargo where its employees stayed and maintained operations. “We didn’t really portray the damaged company that we were,” he says. The bank ordered cash from the Federal Reserve and had it delivered to Fargo to ensure it wouldn’t run out.
And the bank’s leadership took extra steps to ensure its customers were taken care of in their time of need. “We were dealing with this
disaster,” Newman says. “Ours customers were dealing with this disaster and our community was dealing with this disaster.”
Many of the bank’s customers were kept from their workplaces as the flood closed multiple businesses, but that didn’t mean they had a break in their loan payments, Newman says. “Immediately, everyone got loan extensions.” The bank also increased lines of credit for its customers and offered expert help to any customers who needed to refinance in the midst of the disaster, lowering loan interest rates and prolonging payback periods to lower payments. “It wasn’t a handout, but it was a hand up,” Newman says.
All the measures implemented to ease financial burdens on its customers during the flood lowered the bank’s revenue by 25 percent, he says. “But it was the right thing to do for our customers.”
FNBND also set up a mobile home as a bank and drove it around the area, offering banking services to its customers who had relocated to other communities. “I like to give us credit for inventing mobile banking,” Newman says.
The bank would put ads in weekly papers in the area to let its customers know when it would be in certain towns, says Jon Handy, who was the bank’s marketing director at the time. “Customers’ reactions to that were just absolutely fantastic,” he says.
“I can’t say enough about how our company and leadership went out of its way to take care of customers and employees,” he adds.
While FNBND struggled with its problems, its employees were struggling with their own. Homes were damaged and families were displaced. Handy says he was one of the employees who worked from Fargo, and he did so for about a month, while his wife lived in Fosston, Minnesota, so she could get to her job as a public defender in Crookston, Minnesota. The couple had a 1-year-old child at the time, too. “It was really an unusual time,” Handy says.
Handy and his wife were selling a home while building another when the flood hit. Both sustained damage. Luckily, the contractor on the home the Handys were selling did some repair work, as did a family member. For employees without those connections, though, FNBND secured contractors, scheduled appointments and arranged for the repairs to be made. The bank even ensured payment to the contractors until insurance payments came through.
“Your relationship with your employees is so important,” Newman says, adding they were crucial in operations and recovery. “We needed our employees to serve the customers, but they had their own problems to deal with.” With FNBND taking care of the home repairs, the employees didn’t have to worry about them, he says.
Communication is crucial for a business handling a disaster, Newman and Handy agree. “We reacted very quickly,” Newman says. “I can’t stress enough the importance of communication. I look back and I think our marketing and communication people did an outstanding job.”
A disaster recovery plan also is essential, outlining procedures, pinpointing responsibilities and measures to take. Small businesses also should make sure they have business interruption insurance to account for lost revenue, Newman says.
The bank was renamed Alerus in 2000, to reflect the fact that it does business outside of North Dakota. The name comes from the Latin word Alera, which means to give wings or take flight, as the bank did during and after the crisis, Newman says.
“I don’t know if you can ever be fully prepared for what we experienced 20 years ago,” Handy says. “But the company and our company’s leadership took extraordinary measures for its customers and employees.” PB
HAZEN, N.D. — A child care center spearheaded by Basin Electric Power Cooperative is set to open by early May, filling a need in North Dakota’s Mercer County that was first identified in a 2015 economic development study. Energy Capital Cooperative Child Care will combine eight partners to provide care for 60 children ranging in age from infants to 12.
The 2015 study revealed a 291-spot deficiency in child care availability in Mercer County, says Erin Huntimer, project coordinator for Basin and board president for ECCCC. Child care was identified as the No. 1 concern in follow-up studies as well, prompting Basin to survey its own Mercer County employees in November 2015. The results showed the lack of available care affected jobs, Huntimer says.
“Basin Electric took the initiative to address the child care issue because it has a direct impact to our employees and our ability to recruit and retain them,” she says. “We’ve experienced significant turnover from retirements over the past several years. Recruiting new employees to fill these positions becomes difficult when child care doesn’t exist for their families. For our existing employees, the situation has become so challenging that one family described their weekly routine as ‘jumping through flaming hoops’ to find care for their two children. In some situations, we face losing employees who may have to quit because they cannot find reliable care for their children.
“I personally feel electric co-ops are uniquely equipped to find a solution to this challenge,” Huntimer adds. “Our history is rooted in serving the underserved, in banding together for the sake of the greater good. One of our seven cooperative principles is ‘Commitment to Community,’ because if the community thrives, so does the co-op.”
ECCCC recently purchased the New Bethel Congregational Church in Hazen, North Dakota, to house the day care center and hired Dana Santini as program director. Santini has more than 20 years of child
care experience, including teaching preschool, directing a large day care center and owning and operating a licensed day care center in her home, according to Basin. Applications are being accepted for supervisor and aide positions.
The day care center will be open to the public, but many spots are reserved for children of employees working at companies that helped found the organization, Huntimer says.
“While we’re still refining our tuition schedule, we are aiming at market rates, though it’s difficult to say exactly what ‘market’ is in a county where no similar facilities exist,” Huntimer says. “We will be higher than in-home day care, but not unaffordable.”
Basin’s project partners are:
North American Coal Corp., Bismarck
Sakakawea Medical Center, Hazen
Knife River Care Center, Beulah, North Dakota
Union State Bank, Hazen location
Otter Tail Power Co. Coyote Station, Beulah
Hazen Public Schools, Hazen
Coal Country Community Health Centers, Beulah and Center, North Dakota
“Though Basin Electric has led the effort, it would not be possible without the strong commitment of our seven partners who came to the table to discuss this concept with us back in May 2016,” Huntimer says. “They continue to not only guide the process and ask difficult questions, but also serve as shining examples of servant leaders. Everyone asks simply, ‘What can we do to make this happen?’ and no one is afraid to get their hands dirty.” PB
Lisa Gibson EDITOR, PRAIRIE BUSINESS701.787.6753
LGIBSON@PRAIRIEBUSINESSMAGAZINE.COM
Energy Capital Cooperative Child Care will help fill a need for day care facilities in Mercer County, North Dakota. It will be located at New Bethel Congregational Church in Hazen. IMAGE: BASIN ELECTRIC POWER COOPERATIVEOtter Tail Power Co. will seek regulatory approval for a natural gas-fired power station near Astoria, South Dakota. The simple-combustion system will produce 250 megawatts of energy, using natural gas from the Northern Border Pipeline.
“Astoria Station is part of our company’s plan to reliably, economically, and environmentally responsibly meet our customers’ energy needs, replace expiring capacity purchase agreements, and prepare for the 2021 retirement of the 1950s-era, 140-megawatt, coalfired Hoot Lake Plant in Fergus Falls, Minnesota,” Otter Tail President Tim Rogelstad says in a statement. “We ensure that the mix of resources we use to generate electricity includes enough capacity to reliably serve customers during periods of high demand for power and enough affordable energy to serve customers always.”
If approved, Astoria Station would be located at the intersection of the Northern Border Pipeline and an electric transmission line, minimizing the project’s effects on landowners and avoiding some significant costs, according to Otter Tail. The company will invest $165 million in the project, which includes 70 construction jobs during the peak of the 13-month construction period. The company expects Astoria Station to be online in 2021 with three to five full-time employees.
Rogelstad says Astoria Station will complement the company’s wind generation by providing a reliable backstop when the wind isn’t blowing and will have flexible operating options and low CO2 emissions.
In November 2016, Otter Tail announced plans for a 150-MW wind farm near the small town of Merricourt, North Dakota, in McIntosh and Dickey Counties. Expected to be complete in 2019, the company estimates the project to cost more than $250 million, generate enough energy to power more than 65,000 homes, and add 10 permanent jobs.
Before Astoria Station or Merricourt project construction can begin, generator interconnection agreements must be negotiated with the Midcontinent Independent System Operator and numerous regulatory approvals must be obtained, according to Otter Tail. PB
SIOUX FALLS — Starting this spring, Sanford Health oncologists will have access to CancerLinQ, a national nonprofit database used to gather and analyze information from cancer patients. The data is stripped of identifying details and can be used to uncover patterns, determine treatments and help doctors ensure their approach aligns with best practices in the industry.
“Certainly CancerLinQ provides standard of care and quality guidance for treatments — that, however, is just one part of the benefit,” says Sharon Hunt, vice president of cancer services at Sanford Health. “The purpose is really for a treating physician to be able to query a much larger pool of information as he or she searches for personalized approaches for each patient that other physicians have taken with similarly situated patients. Not only can the physician discover options and unique approaches, but they can also assess those approaches with outcome data.”
Many of the most promising therapies for cancer are new, without published data on efficacy, ability to tolerate treatment or side effects, Hunt says. “The CancerLinQ database will enable our physicians to access outcome data from hundreds or thousands of patients similar to the one sitting beside them, and uncover treatment information to provide guidance on the best treatments to fight their own patient’s particular cancer.”
Sanford is one of 50 health care organizations to join the program and is in the process of loading data and testing interfaces with CancerLinQ, Hunt says. When the program is fully launched, all cancer care providers will have access to it. “Our Sanford oncology team is eager to put this tool to work as they feel appropriate,” Hunt says.
CancerLinQ is funded through a grant from the American Society of Clinical Oncology and donations through the Conquer Cancer Foundation, according to Sanford.
“The overall benefit is to reveal a multitude of practical insights that will help our cancer team improve the care of every patient with cancer,” Hunt says. “CancerLinQ will help us to identify patients that are eligible for clinical trials — which allows more patients to have access to the most advanced treatments — but it will also help us to learn from our entire cancer patient population, and the cancer patients throughout the nation.” PB
Lisa Gibson EDITOR, PRAIRIE BUSINESS 701.787.6753BISMARCK — The challenge in 2017 for the oil industry will be to expand the workforce to handle the wells that will be drilled, said Trey Wilson, chairman, CEO and president of MBI Energy Services, an oilfield service provider. “Based on our outlook, we’ll be adding hundreds of jobs this year at our company and our competitors are doing the same,” he said. “The challenge is growing the workforce that’s been dramatically reduced.”
Wilson was a speaker at Energy Day, held March 7 at the North Dakota State Capitol in Bismarck. Beyond the workforce, the event addressed community development, the economic impact of oil in North Dakota, world markets and state tax revenues.
Wilson told attendees drilling activity is expected to be high in 2017 — up to 85 wells per month. “Drilling activity is a huge driver of the need for oilfield services and employment,” he said.
Watford City, Belfield, Dickinson, Williston and Ross, all in North Dakota, will be adding significant jobs, Wilson said. “Just today, we have 75 openings. … As soon as we fill those, we’ll be adding more jobs.” Those positions include everything from truck drivers to office help, he said. “There’s going to be a significant amount of activity in 2017 and we need the workforce.”
The limiting factor is people in the sparsely populated state, he said. “We need to communicate how attractive North Dakota is. … We need to be better at telling the world what’s going on here.”
The improvement to the state’s infrastructure and ability to handle the oil industry’s presence has been substantial in the past few years, he said. “It was nightmarish for people who lived here and nightmarish for people trying to do business here,” Wilson said of the beginning of the state’s oil boom.
Jessie Veeder, a regional columnist, active Watford City community member and Energy Day speaker, noted the positive changes in her community, citing new schools, an increase in the number of young families and new facilities such as the Rough Rider Center, a community events center. She added that social media is important to get the word out about communities’ strong points. “We need to encourage people to make their homes here.”
Despite the downturn in oil, the energy industry is one of the biggest economic drivers in the state, said speaker Dean Bangsund, a research scientist for North Dakota State University. “It wields tremendous influence,” he said.
Energy Day was hosted by Bakken Backers, the National Federation of Independent Business and the North Dakota Petroleum Council. Gov. Doug Burgum made a brief appearance to introduce speaker Lt. Gov. Brent Sanford. “This is important work that’s going on here,” Burgum told attendees. “Energy has transformed us as a state.” He reminded the oil industry representatives and supporters in the room that it’s important to continue to increase infrastructure to increase outtake, while also increasing overall value. PB
Lisa Gibson EDITOR,Valley City State University, in Valley City, North Dakota, is preparing to cut $2.4 million from its budget, on top of the $2.77 million it cut at the beginning of the current biennium. That’s more than $5 million and accounts for almost 20 percent of the university’s total budget. “Every time you cut, you hope it’s going to be the last cut,” says Greg Vanney, director of marketing and communications for VCSU. “The cuts get a little deeper each time. … This is going to hurt.”
Across the state, colleges and universities are slashing budgets, trying to comply with an expected 80 percent reduction to higher education funding for the 2017-19 biennium. New figures released March 10 show an even larger general fund deficit than expected for the current biennium, and as of March 31, it was unclear whether that would mean even more substantial cuts to higher education. The budget won’t be finalized until late April or early May, but the outlook is grim.
A simultaneous slump in agriculture and energy markets is the culprit, particularly low oil prices, says Pam Sharp, director of the North Dakota Office of Management and Budget. “That has taken not only oil revenue, but general fund revenue off the table as well, because it’s impacted the taxable sales purchases so much, and sales tax is our largest source of general fund revenue,” she says.
In the previous biennium (2015-17), VCSU cut less than $2 million, Vanney says.
Elementary and secondary education, human services, and higher education are the three largest expenses in the state’s general fund budget, accounting for almost 80 percent, Sharp says. “Thats where the hits have to come from.”
The largest expense for human services is Medicaid, which, as an entitlement, can only be cut so far. Elementary and secondary education can be funded through the state’s Foundation Aid Stabilization Fund if necessary. But higher education has no backup. “You haven’t seen that cut in K-12 education because there’s been that other funding source to alleviate those cuts,” Sharp says. “But higher ed is a huge chunk of the pie and they don’t have that other source of funding like that Foundation Aid Stabilization fund.”
So while other agencies in health and human services sectors, among others, also are forced to make cuts, higher education is center stage. “A lot of agencies are cutting significantly, too,” Sharp says. “It’s just that higher education is such a large entity as a whole that it’s very, very noticeable and it’s very difficult for them to absorb those cuts without making major changes.”
Higher education in North Dakota takes a hit amid the state’s financial woes because of its impact on the general fund and lack of backup resources. Still, many institutions try to maintain transparency and soften the blow to faculty, staff and students
Other states that rely on energy are suffering, too, but in North Dakota, higher education institutions are limited in their revenue options. The Legacy Fund, for instance, can’t be tapped for higher education funding. The state also has no plans for tax increases to benefit the sector and campuses are not permitted to bond for increased revenue.
Tuition increases, however, are permitted up to 3 percent per year and the state’s four-year universities are below the regional average, so there’s room to raise, says Mark Hagerott, North Dakota University System chancellor. It could help a bit, but the cuts to higher education in this budget are still unprecedented, and the expected 20 percent reduction to the state’s general fund is “radical,” Hagerott says. “This is not normal. This is definitely not something you want to do, but because of the way things are structured, it’s leading to a large cut in higher ed. It’s just the reality.”
In traditional budget-reduction scenarios, common cuts would include early retirements, absorbing empty positions instead of rehiring, reducing administrative overhead, analyzing options for low-enrollment classes and increasing class sizes, Hagerott says. “But we’re past the early stuff,” he says. “It could come to closing programs. The cuts are so significant people are being laid off.”
At VCSU, with a fall 2016 enrollment of 1,452, terminating people and positions could be on the table, Vanney says. “When you start cutting jobs, that’s different. Those are the people you work with. That’s really hard. … I don’t think you can avoid thinking that that will happen. We want to do our best to accommodate those people transitioning to something else. We’re a very close-knit campus and we like to think of ourselves as a family so that’s a really hard concept here.”
VCSU’s budget cutting process has been transparent from the beginning, Vanney says, starting with gathering suggestions from the entire campus community, publication online of all suggestions and an open comment period on those suggestions starting in May, followed by an open meeting with VCSU President Tisa Mason. Vanney is on a special cabinet that will determine final budget cut recommendations to be submitted to NDUS and the North Dakota Office of Management and Budget. Once finalized, those budget cuts will be implemented by July 1, the start of the new fiscal biennium. “We know we’re going to have to cut things that are valuable to us,” Vanney says. “So we want to make sure everybody gets a voice in that.”
In a letter sent to the entire North Dakota State University campus in February, President Dean Bresciani says the campus is looking at a 15 to 20 percent overall reduction. “That reality requires us to consider options which previously would be unthinkable, but will now become necessary in deference to protecting our core academic and student success functions,” the letter reads. Athletics is being slashed by 40 percent, administrative areas are seeing 10 to 15 percent cuts and academics will take “substantial cuts of 10 percent or more,” he writes. Perhaps one of the most significant measures Bresciani has outlined is the elimination of senior administrative structure in the Division of Student Affairs and realignment of the department’s units to other campus divisions.
“The priority is to protect and sustain programs that are central to supporting our students, faculty and staff as they work and study at NDSU,” Sadie Rudolph, NDSU media relations coordinator, tells Prairie Business in an email. “We will maintain our focus on our core mission as a student-focused, land grant, research university.”
With program and position cuts, morale among faculty, staff and students often falls. Vanney says VCSU’s transparency in its budgetcutting process helps keep morale a bit higher. “Having a good process goes a long way,” he says. “That doesn’t stem the pain when the time comes, but at least folks have had a chance to participate and think about things.”
VCSU actively will help any terminated employees find new work, he says. That means giving them full access to the school’s Career Services department and reaching out to find opportunities for them in the Valley City community. “We’ll make some calls and help people,” Vanney says. “Absolutely.” He adds that they’ll be treated professionally.
The university will also work to maintain programs for enrolled students. “We’ll own up to our responsibilities, in terms of if students are in a program, we’re going to try to make sure they’ll be able to finish that program,” Vanney says.
Despite a publicized 12 percent budget reduction, the University of North Dakota in Grand Forks will forge ahead with plans to create an institute for unmanned and autonomous research. The school is on the cutting edge and recognizes where new growth will occur, Hagerott says. “New things still have to happen. … UND realizes the world is not going to wait for North Dakota’s oil and corn prices to go up.”
Recognizing where that growth can occur and making expansions where possible likely will be part of every higher education institution’s budget evaluation process. It will be at VCSU, Vanney says. “Even though we’ve got to make some cuts, we’re going to come out on the other side and keep doing what we do to the best of our ability,” he says.
Sharp says North Dakota will have to settle into its new normal between the oil price extremes of $100 per barrel and about $20 per barrel. “We’re trying to find our way to figure out what the new $100-per-barrel norm is going to be,” she says, adding that West Texas Intermediate will need to hit $60 per barrel and stay there for a while to prompt significant and meaningful change to the state’s budget. “Our hope is that we’re at the bottom of the trough,” Sharp says. “But you never know where that is until after you’ve come out of it.”
Hagerott says, “We look at the glass as half full. We want to make ourselves bigger and stronger. We will work through it.” PB
Valley City State University junior Max Kollar, of Underwood, North Dakota, conducts synthetic biology research.
FARM LAND FOR SALE
Township 156 North, Range 67 West Section 13 N1/2NE1/4 Section 12 S1/2NE1/4 Section 12 SE1/4 Section 1 N1/2SE1/4, and Lots 8 and 9 TOWNER COUNTY – MAZA TOWNSHIP Township 157 North, Range 66 West Section 32 SE1/4SW1/4
Written bids must be placed in sealed envelopes with “Benson County Land Sale” on the face of the envelope. Bids must show a total dollar amount and not dollar per acre figure. Include name, address and phone number on bid. Bids must be mailed or dropped o at: Conroy Legal Services, PLLC PO Box 137 519 Main Street, Suite 10 Bottineau, ND 58318
AND received on or before Friday, April 28, 2017
The five (5) highest bidders will be notified by telephone from Conroy Legal Services, PLLC, on Monday, May 1, 2017.
At that time the bidders will be given an opportunity to verbally raise their bids.
TERMS: Successful bidder shall make payment of 10% of bid amount or $10,000.00 whichever is highest, as earnest money. Balance due in 30 days of the date an updated abstract of title is furnished.
Minerals to go with surface.
SELLER RESERVES THE RIGHT TO REJECT ANY AND ALL BIDS, AND RESERVES THE RIGHT TO MODIFY BIDDING PROCEDURES. For further information or to request an information packet call Lisa or Kim at Conroy Legal Services, at (701) 228-2083.
IMAGE: VALLEY CITY STATE UNIVERSITY
For more than 16 years, business and community leaders have turned to Prairie Business as a valued partner in their overall business-to-business marketing and communications strategy. Prairie Business is your window into business and industry in North Dakota, South Dakota and western Minnesota. Whether you are involved in higher education, health care, finance, architecture and engineering, agribusiness, energy, economic development or construction, we’ve got you covered.
When oil prices started to slump two years ago, some companies in that industry began to consolidate loans, anticipating the loss of clients and contracts, says Kevin Warner, business lending manager for Gate City Bank in Fargo. It was a preventative measure, a preemptive action when it became clear saving money would be vital.
Industry sources hope the prices bottomed when they hit about $20 per barrel and, as they begin to rebound a bit, many oil-related businesses are again looking for new loans in anticipation of increasing activity in the industry, Warner says.
Paige Bjornson, senior business banker with Dacotah Bank in Valley City, North Dakota, says both scenarios point to common reasons a business might consider consolidating or restructuring debt: a need for lower payments in the
face of reduction in cash flow; and a desire to simplify multiple payments in the midst of increased borrowing meant to maintain or enhance operations.
Similar to Warner’s experience with business financing for oil companies, Bjornson says consolidation in the ag industry has become more common recently, as prices there slump, too. Companies are looking to improve their flow of revenue and bridge the finances to the next price increase.
“Just because a bank extends a loan to a business customer for a period of five years with monthly payments does not mean that that business customer, that borrower, is going to live with that loan exactly the way that is for five years,” she says. Certain industries work in cycles, she adds, and a banker’s job is to work with customers and help find solutions when they’re needed.
Of course, current interest rates play a role in a business’ decision to consolidate debt or not. “If it’s not going to save them money, they probably won’t choose to do that,” Warner says. The Federal Reserve sets the interest rate, and for the first time in about seven years has begun to consistently raise it.
After the housing market crashed in 2008, the Federal Reserve left the Fed Funds rate at 0.25 percent for about seven years, leaving the prime rate — set by banks and based on the federal rate — at 3.75 percent, Warner explains. In December 2015, the Federal Reserve increased its rate by 25 percent and raised that another 25 percent in December 2016. Each time, the prime rate increased by a quarter of a point. In March 2017, the Fed Funds rate went up again, to 1 percent, causing the prime rate to increase to 4 percent.
So many raises, and particularly the March increase following so closely on the heels of the December increase, haven’t been common in recent years and likely sway business owners away from consolidation and restructuring finances, Warner says.
That Federal Reserve figure is hard to predict and hinges on factors such as the housing market, unemployment numbers, job markets and oil prices, Warner says. The rate was expected to go up for two years before it actually did, he adds.
Bjornson recommends businesses maintain open communication with their bankers and keep good records. “Good financial records are critical to the success of businesses, small and large,” she says. While keeping the books up to date can be tricky and time-consuming, particularly for small business owners who tend to do wear multiple hats in their operations, it’s important, and especially so in times of downturn. “Our ultimate goal is to keep these companies in business,” she says, adding a business banker is somewhat of a partner.
But regardless of the size of a business or how long it’s been operating, consolidation and restructuring of loans is a common option bankers “absolutely” will explore to suit a business’ individual needs, Bjornson says.
“Businesses, large and small, are constantly facing change and having to update and upgrade equipment, maybe increase inventory … so they are oftentimes looking for some new financing or some changes to their existing financing,” she says. “We want to be there to help.” PB
Gateway to Science has been teaching kids through interactive exhibits and programs since 1994. Now, the organization is hoping to build a new facility to expand its offerings
Beth Demke has been a part of Gateway to Science in Bismarck since it opened in 1994. It started as a community service project, run by volunteers for the first year until it became clear the organization needed an executive director on staff. Demke applied and still serves in that position today.
The nonprofit was established to expose children early to science, technology, engineering and math concepts, Demke says. Local teachers and college professors had noticed their students weren’t prepared when they came to the next grade level of science instruction. “It all goes back to exposure to science early on so the kids can build on that foundation,” Demke says. “So if the foundation isn’t there, then, at every level, you’re kind of playing catch up.”
Gateway to Science, just north of Bismarck State College, provides interactive science exhibits in its gallery, as well as weekend programs, summer camps, family events, field trips and more. Recent programs have included: crime scene investigation labs; Gadget Girls, an engineering course for girls; legos; robotics; and nature programs. The gallery, open to the public six days a week, includes well over 90 exhibits that explore energy, basic physics, human anatomy, biology and much more. “It’s very much a walk-in and self-exploratory kind of place,” Demke says. “Kids get a chance to explore all types of science. About 95 percent of what we do is hands-on. You don’t just read a panel; you don’t just look at an exhibit. You actually are interacting with the exhibit.”
The goal is not only to engage children in science, but also to show teachers that books are not the only way to teach STEM subjects. Lisa Potts, seventh-grade Life Science teacher at Erik Ramstad Middle School in Minot, says Gateway to Science achieves both of those goals. She stops in April every year with about 32 Minot students in grades 6 through 8 from Erik Ramstad and Jim Hill middle schools on their way to North Dakota state Science Olympiad in Fargo. “We really make sure to give them another science opportunity,” Potts says. “It takes everything we teach, hands-on; it takes things we don’t teach, hands-on. It’s right there. It’s interactive. I’d take all my kids if I could.
“The kids go in there and we have to drag them out,” Potts adds. “An hour isn’t long enough. They’re experiencing science. They’re experiencing lots of new adventures.”
Gateway to Science is planning a new $30 million facility on the edge of the BSC campus that will expand its gallery floor from 2,500 square feet to 27,000. “What it will allow us to do then is really explore some of those areas of science that, right now, we sort of dabble in,” Demke says. The land was donated by the City of Bismarck to BSC, specifically for the purpose of building the science center. BSC, one of Gateway to Science’s partners, will be the owner of the property, Demke says.
With all its services, the nonprofit currently engages about 30,000 people per year. “We anticipate serving anywhere between 70,000 and 100,000 every year going forward in the new facility,” Demke says.
She hopes the organization will break ground on the new site this year, and be open by the end of 2018. “It’s a dream come true,” Potts says of the planned facility. “I’m so envious. It’s unbelievable.”
Demke says Gateway to Science is in the process of raising the money needed for the new facility. The nonprofit’s funding comes from admissions to the gallery, memberships, fundraisers, grants, and private and corporate funding, she says.
The biggest challenge at a nonprofit is, of course, funding, but also staffing. “Attracting the right people to the job and then keeping them, for a nonprofit, can be difficult,” Demke says. The center now has three full-time employees, including Demke, as well as part-time student staff made up of high schoolers and college students.
Gateway to Science has been successful because it offers incredibly useful, interactive programs and exhibits that also are fun, Demke says. Each time a new program or exhibit is added, experts, partners and community members from the applicable field are brought in to help develop it. PB
In June, we will produce an additional magazine entirely focused on the construction industry. We will share trends, projections and feature leaders working in the construction industry, as well as some of the major projects that are underway in our coverage area.
We invite you to participate in this special edition with an advertisement focused on how your business is involved in the construction industry. Prairie Business is read by business leaders, current and future decision-makers and entrepreneurs. Our goal is to provide a comprehensive vision of construction and its impact on the vibrancy of our communities.
ADVERTISING DEADLINE: MAY 15, 2017
Jacob Havron had heard stories about university athletes having to drop their sports or sit out a year to focus on school. That made him nervous, but he decided he’d juggle nursing school and basketball anyway. “I took it as a challenge,” he says. “I wanted to be the person who could do it.”
Havron graduates from the University of Jamestown in Jamestown, North Dakota, this year with a Bachelor of Science in Nursing. He played varsity basketball all four of his years on campus. He says balancing a sport with the demanding schedule of a nursing program meant long days, organization and sacrifice.
Havron grew up in Hawaii, but when he was a high school senior pursuing a basketball scholarship, he happened to attend a basketball showcase camp in Minnesota, where he was connected with UJ’s athletics program. After some research into the school, Havron realized it had a great program for nursing, a field he was eager to learn. It was a win-win, he says.
UJ’s nursing program exposed him to different areas of the field. Clinicals alone place students in nursing homes, the North Dakota State Hospital and the operating and obstetrics sectors of Jamestown Regional Medical Center.
“I got to experience it all,” Havron says. “It helped me see where I would want to be in nursing. Nursing has such a wide variety of choices.” His choice is trauma and critical care in an intensive care unit or emergency room. The quick pace and immediate patient care “called his name,” he says.
After graduation, he’ll move back to Hawaii and take his national nursing exam to be a registered nurse. He’s keeping his options open for more schooling down the road, perhaps in sports medicine or physical therapy. “That’s the great thing about nursing,” he says. “It’s a door that leads to more doors. There are so many areas and opportunities.”
Being an athlete and nursing student meant long days that started early with class, followed by practice and then clinicals at night, Havron says. Or eight-hour days in clinicals with no break before practice. “Your feet are hurting, you have no energy, but you still have to go out there and play your best.”
His teachers and administrators helped schedule his coursework and requirements around his basketball schedule as best they could so he could succeed in both. “They were really helpful and understanding,” he says. His clinicals were scheduled in Jamestown instead of other cities so he could continue to play basketball. “It’s hectic, but it works,” he laughs.
He also attends a campus church service each week. “You have to keep your mind calm and your faith in check,” he says. When he returns home to Maui each summer, he serves as a youth leader at his local church, and keeps any potential free hours in Jamestown occupied with community service projects through the Jimmies athletics department.
Despite the fact that balancing nursing school with basketball required substantial organization and sacrifice, he says he wouldn’t do anything differently. “I would definitely go through it all again,” he says. “If I could experience it again, I would.” PB
Lisa Gibson EDITOR, PRAIRIE BUSINESS 701.787.6753LGIBSON@PRAIRIEBUSINESSMAGAZINE.COM
IMAGE: JOSH KNUTSON, UNIVERSITY OF JAMESTOWNAlthough not considered new, 3-D laser scanning technology and its use in the architecture, engineering and construction industry is on the rise due to increased capabilities and reduced costs. At EAPC, we use scanning primarily to increase the accuracy and reduce manpower required to create as-built conditions for retrofits to facilities. A scan can be converted to a working 3-D computer-aided design model from which designers can utilize as a starting point for modifications to the facility. Scans result in models that are far more accurate than manually building them through on-site, time-consuming measurements, thereby reducing on-site time, access issues, travel time and costs, and potential change orders during construction.
By far the most impactful tool we have embraced at Bismarck State College is the use of Interactive Learning Tools or ILTs. ILTs, which come in the form of animations, mini-simulations, simulations and laboratories, can be used online and in the classroom. What makes ILTs unique is that they allow us to leverage multiple teaching and learning styles over multiple delivery mechanisms, providing more opportunities to transfer knowledge to students. Gone are the days of reading a book and looking at photos, BSC students use ILTs to actively engage in curriculum during class, at home, or anywhere in the world.
Technology has always had a major impact on the legal profession. In many ways, technology has helped streamline the practice of law and made lawyers more accessible and efficient. At Fredrikson & Byron, we have embraced using technologies such as advanced audio and video conferencing systems and ShareFile systems, which allow us to connect with clients across the country. At the same time, technology can also pose serious risks to law firms and their clients, so Fredrikson has also incorporated new applications and security systems, such as AirWatch, intrusion detection and prevention systems, state-of-the art firewalls, application whitelisting, security information and event management, tight security policies, a security awareness program, a privacy and security committee, and other advanced industry standard approaches to keep our client and firm data protected.
As a provider of internet services to businesses and governmental entities across North Dakota, we’ve obviously embraced the internet and all it has to offer for our customers. High-speed connectivity is crucial for us, as it is for our customers, which is why DCN and our 15 owner companies have invested $1.4 billion in fiber optic infrastructure. Smartphones have taken tech mobile and made on-the-go internet access a must for businesses, which is why we are installing a firstever statewide Wi-Fi network for our customers. Connectivity is the backbone of all things tech, and that’s our main focus.
Our clients expect and deserve to bank whenever or wherever it works best for them, so it’s all about offering in-branch, online and mobile access, coupled with great customer service. Our Banking @ the Speed of Life program offers convenient and secure online and mobile banking options, including online personal banking, e-statements and a custom mobile app complete with mobile check deposits, bill pay, a person-to-person payment function and a GPS-powered location finder to help point our clients to fee-free ATMs. On the commercial side, we work individually with clients to customize their online business banking experience to best suit their unique situations.
Our early embrace of the electronic health record (EHR) changed the way we do business at Trinity Health, and transformed the way care is delivered. With a greater, more seamless flow of information, providers make treatment decisions more quickly and safely. New technologies like robotic surgery and digital imaging feed into the EHR, allowing for more precise treatment options and better outcomes. We continue to leverage this information to improve the health of patients and design better health strategies for the community. Additionally, medical genetics and clinical genomics will play a vital role in the prevention and treatment of disease.
Randy Schwan VICE PRESIDENT TRINITY HEALTH MINOT