Prairie Business August 2019

PREMIER BUSINESS MAGAZINE OF THE NORTHERN PLAINS | AUGUST 2019

TAKING OFF NORTHERN PLAINS UAS TEST SITE HELPS USHER IN AVIATION’S NEW ERA Nicholas Flom

EXECUTIVE DIRECTOR NORTHERN PLAINS UAS TEST SITE

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Manufacturerscontributed contributed$2.38 $2.38trillion trilliontotothe theU.S. U.S.economy economyinin2018 2018 Manufacturers

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TABLEOFcontents

DEPARTMENTS

AUGUST 2019 VOL 20 ISSUE 8

EDITOR’S NOTE

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BY TOM DENNIS

FRANCHISING

12

HOW TO SUCCEED IN FRANCHISING BY REALLY, REALLY TRYING

BY AL HAUCK

INFRASTRUCTURE

14

AT RAVEN UNIVERSITY OR RAVEN U, RAVEN INDUSTRY EMPLOYEES CAN LEARN LEADERSHIP SKILLS, TIME MANAGEMENT, FINANCIAL PLANNING AND OTHER TOPICS. SUCH CAREERDEVELOPMENT OPPORTUNITIES ARE ESSENTIAL FOR RECRUITING AND RETAINING MANUFACTURING WORKERS, EXECUTIVES AT THE SIOUX FALLS, S.D.-BASED COMPANY SAY. PAGE 20. IMAGE: RAVEN INDUSTRIES

UTILITIES SHOULD BETTER IDENTIFY – AND CONSUMERS SHOULD STRIVE TO UNDERSTAND – INFRASTRUCTURE ‘WANTS’ VS. ‘NEEDS’ BY KEVIN MARTIN

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BUSINESS INSIDER

FEATURES

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STARTUP LINE

20

30

CONSTRUCTION CORNER

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PRAIRIE PEOPLE

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INSIGHTS & INTUITION

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BY THE NUMBERS

NICHOLAS FLOM, EXECUTIVE DIRECTOR OF THE NORTHERN PLAINS UNMANNED AIRCRAFT SYSTEMS TEST SITE, DESCRIBES THE REGION’S EXTENSIVE EFFORTS TO STAY ON THE INDUSTRY’S LEADING EDGE

ADAM ZACH AND JON ENRIGHT TALK ABOUT SET YOUR RENT, THE STARTUP THEY FOUNDED THAT LETS TENANTS RENT AND MOVE INTO ‘FOR SALE’ HOMES

MANUFACTURING SCHOLARSHIPS, CAREER BUILDING AND MORE PRAIRIE BUSINESS-AREA COMPANIES GET CREATIVE TO HIRE MANUFACTURING WORKERS

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UPON COMPLETION OF ITS $146 MILLION EXPANSION, FARGO’S WASTEWATER TREATMENT PLANT WILL BE NORTH DAKOTA’S LARGEST, A FACILITY THAT’S ABLE TO TREAT 50 MILLION GALLONS OF WASTEWATER A DAY

ARCHITECTURE & ENGINEERING WATER, WATER EVERYWHERE THE REGION’S BIGGEST CIVIL-ENGINEERING PROJECTS SEEK TO CHANNEL THE MOST ABUNDANT SUBSTANCE ON EARTH: WATER

prairie people

ON THE COVER: WITH A GENERAL ATOMICS PREDATOR B REMOTELY PILOTED AIRCRAFT AS A BACKDROP, NICHOLAS FLOM STANDS IN A HANGER AT THE GRAND SKY UNMANNED AIRCRAFT SYSTEMS RESEARCH AND DEVELOPMENT PARK NEAR GRAND FORKS, N.D. FLOM IS EXECUTIVE DIRECTOR OF THE NORTHERN PLAINS UAS TEST SITE, ONE OF SEVEN FAA-APPROVED UAS TEST SITES. PAGE 16. IMAGE: NICK NELSON/FORUM NEWS SERVICE.

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VISIT WWW.PRAIRIEBUSINESSMAGAZINE.COM TO SEE THESE AND OTHER NEW HIRES, PROMOTIONS AND AWARD WINNERS IN THE REGION.

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ERICA MOORE HAS BEEN HIRED AS SOUTH DAKOTA STATE UNIVERSITY’S AMERICAN INDIAN STUDENT CENTER DIRECTOR. MOORE EARNED A BACHELOR’S DEGREE FROM THE UNIVERSITY OF MARYLAND, A MASTER’S FROM AMERICAN MILITARY UNIVERSITY AND A DOCTORATE FROM NORTHCENTRAL UNIVERSITY.

JOE BUNKERS

HAS BEEN PROMOTED TO VICE PRESIDENT OF OPERATIONS FOR GAGE BROTHERS IN SIOUX FALLS, S.D. BUNKERS JOINED GAGE BROTHERS AS A DRAFTER IN 1999. BEFORE BEING PROMOTED, HE HAD SERVED AS VICE PRESIDENT OF PRECONSTRUCTION FOR THE PAST SIX YEARS.

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editor’snote

AUGUST 2019 VOL 20 ISSUE 8

TOM DENNIS EDITOR

I

tdennis@prairiebusinessmagazine.com 701.780.1276

Fair winds and following seas

grew up on college campuses. My mom was a professor, and my dad was a college administrator.

So I guess it was inevitable that I’d wind up on a campus, too.

Which is a long way of saying that this will be my last issue as editor of Prairie Business.

I’ve accepted a new job at the University of North Dakota in the marketing and communications division there.

But I’ll look back with great fondness on my time at Prairie Business, especially on the chance it has given me to get to know the region better. What exciting discoveries that offered, and what fun it has been to visit different workplaces and sense the incredible dynamism that’s powering the region’s economy.

I felt that vigor on my very first assignment, which was to tell the story of Digi-Key in Thief River Falls, Minn. TRF is an hours-long drive away from the nearest four-lane highway, but that hasn’t stopped Digi-Key from becoming the fifth-largest distributor of electronic components in the world.

In 2017, the company amassed $2.3 billion in sales and now counts more than 4,000 employees.

Nor is that energy confined to one sector.

Ad agencies, law firms and financial-service corporations are among the most impressive I’ve encountered.

The common thread tying all of them together is talent. Moreover, it’s talent dedicated to civic growth, not partisan politics. “As the national scene has polarized, people in local communities are working effectively to get things done,” the New York Times’ David Brooks has written, and I certainly found that to be true. In two years of talking about the future throughout our entire region, politics almost never came up.

It’s a great place to live; I knew that before, but I’m even more convinced of it now. We’re upper Midwesterners at what might be the most exciting time in our region’s history, and that’s a hard combination to beat.

Good reading, Tom Dennis

PUBLISHER KORRIE WENZEL AD DIRECTOR STACI LORD EDITOR TOM DENNIS CIRCULATION MANAGER BETH BOHLMAN LAYOUT DESIGN KAYLA RONNGREN ACCOUNT MANAGERS NICHOLE ERTMAN

800.477.6572 ext. 1162 nertman@prairiebusinessmagazine.com

PETER FETSCH

800-477-6572 ext. 1172 pfetsch@prairiebusinessmagazine.com

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 Beth Bohlman:

bbohlman@prairiebusinessmagazine.com

ONLINE

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FRANCHISING

AUGUST 2019 VOL 20 ISSUE 8

AL HAUCK STANDS IN HIS NEW BUFFALO WINGS & RINGS RESTAURANT THAT HE AND HIS WIFE OWN IN WEST FARGO, N.D. THE HAUCKS ALSO OWN THE BUFFALO WINGS & RINGS FRANCHISES IN MINOT AND BISMARCK. IMAGE: DAVID SAMSON/FORUM COMMUNICATIONS

The secret ingredients

of successful franchising

By Al Hauck

WEST FARGO, N.D. – Recently, I had the pleasure of opening a third Buffalo Wings & Rings restaurant in my home state of North Dakota. There’s no other feeling like the one

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you get on that first day of being open for business.

As happened with the earlier openings of our restaurants in Minot and Bismarck, I got to feel

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the pride of being not only a business owner but also a husband, father and grandfather, because – for us – franchise ownership has always been a family affair.

Franchising can be a great path for those looking to realize their business ownership dream. There is incredible value in going into business, as the franchise industry likes to say, for yourself but not by yourself. That’s been my experience since I decided to sign on to become a Buffalo Wings & Rings franchisee.

But for those who may be considering franchising as a next chapter, I wanted to provide some advice based on my decade of experience as a franchisee.

In the restaurant industry, any help that you can get to support and guide you through opening a new business is helpful. Trying to do it on your own while creating a menu, processes and designs, engineering the kitchen, making sure you’re buttoned up for inspections and doing everything else that goes into running a restaurant is a lot – especially if you’re new to the industry.

So, having a franchise team to help guide you through all that helps you become much more successful than you likely would on your own.

DETERMINE WHAT’S IMPORTANT TO YOU BEFORE INVESTING

When we were considering becoming franchisees, my wife and I had children and really wanted something we could build with and for them (and later on, our grandchildren).

My family is involved in the business, so I get to see them every day. Getting to work with our kids and spend so much time with our family

means we are just so blessed. So, that checked a box for us.

The product was important too. With Buffalo Wings & Rings, it’s fresh, never-frozen food, and we really enjoyed the menu and product.

It was also important to us to have a franchise partner who truly cared about us and wanted us to succeed.

DO YOUR HOMEWORK AND DUE DILIGENCE

Once you have determined those must-haves in a franchise partner, it’s important to spend time researching the brand and gaining full insight into all of its elements.

For example, it’s vital to take a look at the success and failure rate of the stores that a certain brand is opening. It’s also important to know the type of support that the company offers to its franchisees.

To learn more about these key issues, be sure to talk with the company’s existing franchisees.

Find out from the men and women who own locations about the support they got when they went into the investment, when they built out and once the business opened, as well as how it has been since then.

All of this research will help you feel much more confident in your decision and your future success.

ANTICIPATE THE CHALLENGES THAT YOU’LL FACE

While you’ll get support through the nature of

the franchise model, no business is going to be a “set it and forget it” deal. And if you decide to become a restaurant franchisee, then hiring staff is probably one of the hardest things you’ll do.

You need to find the right staff. If you don’t have a good staff or good people, it will make your life miserable. I recommend hiring people who are smarter than you are. We have tried to do that as much as we can. Hire smart people who care and who truly look at their work as being more than just a job.

GET INVOLVED IN THE COMMUNITY

If you do decide to move forward, it’s extremely important to invest in your community. We have always worked closely with the Chamber of Commerce, for example.

Getting help with the chamber is a great idea. Chamber leaders and members are ambassadors in the community. I try to be a member of every chamber that I can. It’s a great way to learn how to get involved in your community.

We’re family friendly, so we want to find ways to get involved with families, kids and familyfriendly groups. Without the community’s support, running a business is going to be difficult.

Al Hauck

President-Owner BWR-Bismarck, Inc. (701) 222-4297

We take a personal interest in the work being done around us.

And at the end of the day, we’re

Real People offering Real Solutions.

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Project Funding & Financing

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INFRASTRUCTURE

AUGUST 2019 VOL 20 ISSUE 8

IT’S TIME FOR WATER SYSTEMS AND OTHER UTILITIES TO BETTER IDENTIFY INFRASTRUCTURE WANTS VS. NEEDS, SAYS KEVIN MARTIN, SENIOR PROJECT MANAGER FOR HOUSTON ENGINEERING, INC., IN BISMARCK. IMAGE: HOUSTON ENGINEERING

Understand – and better identify – infrastructure

‘wants’ vs. ‘needs’

By Kevin Martin

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BISMARCK, N.D. – When it comes to municipal water rates, “fairness” now seems to mean “perpetually subsidized to be kept as low as possible.” This is true regardless of the service’s carried costs, maintenance requirements and other expenses.

This view appears to be common among utilities, because the pressure to keep rates as low as possible has limited building reserves that are needed for emergencies, maintenance and improvements.

And kicking this financial can down the road leads to higher costs for all when major improvement or replacement is required.

Furthermore, generational equity is often ignored, which means customers who’ve already paid for their utility infrastructure face ongoing rate increases as their community grows and its infrastructure needs expand.

Here’s another area in which public opinion affects how we pay for infrastructure: the “little bit of pain for everyone” approach. In recent decades, in their effort to spread the costs of expansion and improvement across their entire user base, utilities have tended to identify the benefits of those projects, especially excess capacity, in increasingly broad strokes.

The trade-off for this is that it tends to promote “wants” in the same way that it does “needs.”

But wants are infinite, so this approach often leaves municipalities strapped and unable to pay for basic infrastructure without Bank of North Dakota or other financial help.

Speaking of wants and needs, perhaps utilities and municipalities alike should use those terms more often when describing

infrastructure projects. This would help customers better understand the difference, and might lead to more efficiency as the betterinformed customers become better able to set infrastructure priorities.

Here’s an example. I recently attended a city commission meeting where residents were listing a host of complaints about a pending increase in water rates. Invariably, the complaints were from people who’d been notified that their irrigation (lawn watering) use was now going to be billed at a higher rate than their base (average residential) use.

The notification letters gave residents a breakdown of their water use for the prior year and what the new cost for a peak watering month might be.

Additional information was offered regarding best practices for the types of grass typically grown in the area. Also provided were links to the Extension Service and information about “smart sprinkler” systems, which monitor weather forecasts and rainfall to avoid excessive irrigation.

The rate increase was the result of an intensive analysis of water, wastewater and stormwater utility rates. Thanks to the technological revolution, decision makers now have new and powerful tools that can analyze water use and integrate that information into rate setting in equitable ways.

In this case, the analysis looked at which users, user classes and uses were generating costs, then used this information to set water rates.

But according to many people in the crowd

and one city commissioner, the previous system – in which two-thirds of the households subsidized the remaining one-third’s water rates for irrigation – was the more fair. Kudos to the commission and the public works director for rejecting this view, and for pointing out that there’s no justice in continuing a system that burdens a majority of residents for the actions of the minority.

Also, kudos to the public works director for reminding everyone that the primary purpose of a municipal water supply is to provide safe water for human consumption. Another key purpose is to provide firefighters with a reliable water supply, a water-use that greatly improves a city’s ability to protect life and property.

Both these purposes can easily be justified as needs. Just as clearly, watering grass is a want.

But considering not only how much this “want” affects the water system, but also how much pushback was inspired by the proposal to price wants higher than needs, it’s clear that infrastructure cost, value and equity are poorly understood by most consumers.

As one of the property owners who received the letter, I had a decision to make: either use a “smart sprinkler” or similar system to modify my lawn-watering habits, or pay more for that particular water service. That seemed like a fair choice to me.

Kevin Martin

Senior Project Manager Houston Engineering, Inc. Bismarck, N.D.

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BUSINESSINSIDER

AUGUST 2019 VOL 20 ISSUE 8

Buzzing with promise The Northern Plains Unmanned Aircraft Systems Test Site is helping to unleash the UAS industry’s full potential NICHOLAS FLOM, EXECUTIVE DIRECTOR OF THE NORTHERN PLAINS UAS TEST SITE, STANDS FOR A PORTRAIT IN THE TEST SITE’S OFFICES IN THE TECH ACCELERATOR BUILDING ON THE UNIVERSITY OF NORTH DAKOTA CAMPUS IN GRAND FORKS, N.D. IMAGE: NICK NELSON/FORUM NEWS SERVICE

EDITOR’S NOTE:

Nicholas Flom is executive director for the Northern Plains Unmanned Aircraft Systems Test Site. The Grand Forks, N.D.-based organization is one of seven nationwide that have been designated by the Federal Aviation Administration to research the safe integration of UAS into the national airspace system.

This Q&A with Flom has been edited for clarity and length.

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Q.

THIS YEAR, THE NORTH DAKOTA LEGISLATURE APPROVED A $33 MILLION PROPOSAL, $28 MILLION OF WHICH WILL BUILD A STATEWIDE UNMANNED AIRCRAFT SYSTEMS NETWORK. WHY IS THE NETWORK NEEDED?

A.

Right now, there are probably 5,000 airplanes up in the air at any given time over the United States. That’s the norm. Those aircraft can be coordinated through voice communication; it’s pretty routine, and the system works.

Now, imagine deploying 5,000 drones in a single community for everything from delivering packages to conducting searches for the benefit of first responders.

Before you dismiss that as science fiction, remember that while there are maybe 300,000 manned airplanes registered, more than a million drones already have been registered. And we’re just on the very front edge of this stuff.

In this new UAV environment, voice communication no longer will serve very well. We also will need radars and radios in order to let the UAS fly longer distances.

We need technology, and that’s what we’re working to install.

PRAIRIEBUSINESSMAGAZINE.COM

Q. A.

WHAT KIND OF TECHNOLOGY?

Q.

THEN WILL AN AIR-TRAFFICCONTROL CENTER OF SOME KIND GET INVOLVED?

A.

We’re in the final stages of defining what the architectural elements are going to look like. One portion will be a network operations center; but I don’t expect it to feature traditional air traffic controllers, calling pilots up on the radio and telling them to maneuver.

Instead, the center’s personnel will be monitoring the airspace while the unmanned aircraft will be talking with each other automatically, more so than we’re used to in the regular, manned aircraft space.

Understand, we’re not trying to invent this; there already has been a lot of work on it.

We’re not trying to come up with our own North Dakota Air Traffic Control System.

Instead, we’re trying to leverage the work that NASA and others have done in developing this.

To begin with, we’re going to connect radars so that UAS can avoid existing manned aviation traffic. Then we’ll add radios to command and control the UAS. All of this will be operated using a UAS traffic management system.

Using that UAS traffic management system, you’ll start by telling the system your flight plan: I’m going to send my aircraft from point A to point B. And in doing so, you’ll be kind of reserving that airspace.

Q. TELL US ABOUT YOUR OWN BACKGROUND AND HOW YOU CAME TO BE THE EXECUTIVE DIRECTOR. A.

I’m from the Minneapolis area – Richfield, Minn. – and I came up here to the University of North Dakota to go to school. I went through UND’s pilot training program and became a commercial pilot.

And as I tell people all the time, I thought I could not get out of North Dakota fast enough.

But before long, I realized that there was more to aviation out there. And I especially realized how farsighted North Dakota was in seeing the potential of this new UAS industry.

In 2005, they had the Base Realignment Commission or BRAC, and of course, Grand Forks Air Force Base lost its tanker mission. In my view, you get to make two decisions when something’s taken away: You can either complain and try to get back what you lost, or you can find the next great thing.

North Dakota and the region took the latter route. The base picked up a UAS mission, UND started an unmanned aircraft major, Northland Community and Technical College started its UAS Maintenance Technician program, and so on.

Then, as you know, North Dakota applied and was selected in 2013 as one of the six original UAS test sites around the country. It was a competitive process; 25 entities had applied for the six positions. But North Dakota was farsighted again in that it had already prepared itself by bringing on a director before the state had been selected.

That was Bob Becklund, and I ended up being Bob’s first hire as the test site’s safety director.

Bob is in the National Guard, and not only did he eventually get promoted to brigadier general, but also he became the deputy adjutant general for the state. That opened up the executive director position, so I applied and have been the director now for about three years.

In short, I stuck around North Dakota, and I’ve been here for over 20 years. I have no desire to go anywhere else.

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Q. A.

HOW DID THE INFRASTRUCTURE PROJECT COME ABOUT?

Q. A.

WILL THE PROJECT BE BUILDING NEW RADAR AND RADIO TOWERS AROUND THE STATE?

Q. A.

WHAT KINDS OF USES FOR UAS DO YOU FORESEE?

There’s a saying, “It takes you a lifetime to become an overnight success.” North Dakota’s success with UAS didn’t just happen, in other words. It involved multiple governors and multiple congressional and legislative sessions, as well as decades-old elements such as Grand Forks Air Force Base and the aerospace school at UND that already were in place.

But there’s a follow-up to that saying, which is, “For your encore, they don’t give you that much time.” So, we’ve become the leader, and now it’s important for us to keep moving and progressing.

And that’s what the Legislature has done by authorizing this infrastructure project.

Actually, the first question we’re asking is, what does the state already have access to? For example, the FAA has four large radars – one each in Grand Forks, Fargo, Minot and Bismarck. Likewise, the state already has a statewide radio network; it’s used by first responders.

There already are towers out there, in other words. So, what if we can leverage those towers and bolt on our equipment rather than building towers of our own?

This might not result in 100 percent coverage of the state at first. But over time, that percentage would increase, exactly as it has with cell phone coverage. We want to do that same thing.

And here’s what might be the most important part: We’re not trying to build a one-off solution. We’re trying to make sure that when the FAA puts out its standards, we’re meeting all of those.

We want to set the standard for the country, in other words. That way, if you have an airplane that flies in North Dakota on this network, you won’t need to put new technology onboard your aircraft if you’re flying in Montana.

We’re working in lockstep with the FAA to make sure they not only understand that this initiative’s going on, but also that we’re doing it in line with their vision as well.

We’ve been working with companies such as Xcel Energy, which has requirements to fly the utility’s transmission lines on an annual basis. That means they have a guy in a helicopter flying low and slow close to live power lines. It’s dangerous, and given that it’s just a person looking out of an airplane, Xcel may not even be getting the best data.

So they’re asking, how can we make this safer? How can we get better information? Unmanned aircraft are an obvious answer.

Also, one of the best cases for flying a drone is in western North Dakota. As I mentioned, Xcel has yearly inspection requirements; meanwhile, oil companies have biweekly requirements. Every two weeks, their pipelines have to be inspected. That’s a great use for drones, and we’ve barely begun to tap into it.

You see, it takes infrastructure of the kind that I’ve been describing to support those kinds of advanced operations. And as of now, the individual companies have to build out their own networks. For example, BNSF – the rail company – has been a front runner in using UAS for rail inspection. But they literally had to set up their own network to enable their operations.

We don’t do that in other parts of aviation. I go to the Grand Forks airport; I don’t go to the Grand Forks Delta Airport or the Grand Forks UND Airport. Instead, the aircraft from different companies use the same infrastructure; and for UAS, that’s what our statewide network will enable.

Think of it this way: Amazon and other companies would like to use drones to deliver packages to your house. Some years after that happens, you can expect to see flying cars; the first version likely will have a manned pilot, but over time, those aircraft, too, probably will become unmanned.

That’s the kind of thing we’re talking about. We’re helping NASA, the FAA and other organizations develop the needed infrastructure as well as safety rules, privacy rules, traffic-control rules and other regulations, all across the board.

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8th Annual Safety & Health Conference December 3 & 4, 2019 • Delta Hotel, Fargo, ND

The purpose of the NRASP Annual Conference is to enhance the development of safety, health, and environmental professionals by providing quality speakers and learning opportunities.

Breakout sessions specific to: • • • •

General Industry Transportation Construction Management

Day 1

Keynote Speakers

Mark J. Lindquist has appeared in ABC’s LOST, CBS’ Hawaii Five-O and the Universal Studios movie “Battleship.” He is a world-touring entertainer who has performed live for over 3 million people in 22 countries and 44 states throughout his career. As a highly sought-after National Anthem singer, he performs for the largest crowds in America for teams such as the Minnesota Vikings, the Los Angeles Dodgers, Duke University Men’s Basketball, the College World Series, the NCAA and in venues such as Madison Square Garden.

Mark is a former Sergeant in the United States Air Force and an Afghanistan War Veteran who is based out of Fargo, North Dakota.

Day 2

Spencer Speaks

Motivation. Safety. Inspiration.

Spencer’s presentation has a profound effect on everyone who experiences it!

Spencer opens his heart and relives his story to share with the audience how every fearful and painful moment was to become a blessing. By using his expert story-telling and his amazing sense of humor, Spencer ignites his audience to believe in the power of change and how it is the most important catalyst in discovering your greatest life lessons.

more info at www.nrasp.org/CONFERENCE

CELEBRATING

75 YEARS OF EXCELLENCE

Ulteig is a leader in design engineering, program management and technical and field services. We have 75 years of experience and reputation, driving reliable solutions. Our team of forwardthinking innovative experts make critical connections, putting together the complex, multi-disciplinary strategies you need in today’s changing world.

WHERE COLLABORATION AND ENGINEERING INTERSECT Ulteig provides expertise throughout North America in the Lifeline Sectors® of power, renewables, transportation and water.

ULTEIG.COM

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MANUFACTURING

AUGUST 2019 VOL 20 ISSUE 8

THE FACEBOOK PAGE OF WCCO BELTING IN WAHPETON, N.D., HAS A NUMBER OF PHOTOS LIKE THIS ONE. “DAKOTA IS THE SIOUX WORD FOR ‘FRIEND,’ AND THAT IS PART OF THE REASON WE CALL NORTH DAKOTA HOME,” THE PHOTO’S CAPTION READS. “THE NAME FITS OUR CULTURE AT WCCO PERFECTLY. WE ARE NOT JUST COLLEAGUES; WE ARE FRIENDS AND FAMILY.” IMAGE: FACEBOOK.COM/WCCOBELTING

Building a ‘work family’

Manufacturers attract workers by walking the ‘servant leadership’ walk

By Tom Dennis

GRAND FORKS, N.D. – Rick Trontvet knows the numbers: Half a million open jobs in manufacturing right now, and over the next decade in America, some 2.4 million manufacturing jobs could go unfilled.

In fact, as senior vice president of human resources for the Minnesota-based Marvin Companies – most of whose factories are in thinly populated rural areas – Trontvet knows the trends better than most.

But Trontvet also thinks Marvin and a few of the other employers whom he’s worked for

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have the answer.

“I’m always excited to talk about this, because it’s cracking the code,” Trontvet said.

“Everyone thinks it’s impossible to hire large numbers of workers in rural areas. But after 25 years of doing this, I feel like it’s actually achievable – if you’re a really good employer.”

If employers simply “do the right thing day in and day out,” Trontvet said, “the street hears about that. And that’s how people hear that the jobs are good and the employees are treated well: from our own employees, who are the

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best recruiters of all.”

Understand, Trontvet isn’t talking about just pay and benefits. He’s talking about – well, here’s another speaker who understands the Marvin Companies’ appeal: “The family business in Warroad, Minn. … didn’t lay off a single one of their 4,000 employees during the recession, even when their competitors shut down dozens of plants, even when it meant the owners gave up some perks and pay – because they understood their biggest asset was the community and the

N HIS SPEECH AT THE 2012 DEMOCRATIC CONVENTION, PRESIDENT BARACK OBAMA NOTED THAT THE WARROAD, MINN.-BASED MARVIN COMPANIES “DIDN’T LAY OFF A SINGLE ONE OF THEIR 4,000 EMPLOYEES DURING THE RECESSION.” THAT COMMITMENT IS A HUGE ASSET IN ATTRACTING WORKERS, MARVIN’S HR DIRECTOR SAYS. IMAGE: YOUTUBE.COM/WATCH?V=KKQV9BECV28 workers who helped build that business.”

That was President Obama in 2012, in his speech accepting the Democratic Party’s nomination to run for re-election.

And that’s the kind of commitment-toworkers that Trontvet is talking about.

“The more we do the right thing, the more we treat people fairly, the more people are attracted to come work for us,” Trontvet said.

‘FAMILY FIRST’

Rod Koch couldn’t agree more. Koch is vice president of operations at WCCO Belting, a Wahpeton, N.D., company whose 190 employees make industrial rubber belts.

The process involves heat, hydraulics and heavy machinery, so it’s not glamorous work.

“But over the past four or five years, our turnover rate has been under 3 percent,” Koch said. “I’m quite confident that the industry average turnover in the United States is in the 18 to 20 percent range.”

Moreover, “we have just about a 50/50 maleto-female ratio,” he said. “Again, that’s a totally nontypical statistic in manufacturing, where the female workforce in factories tends to be about 25 percent.”

What’s WCCO Belting’s secret?

It’s very simple, Koch said. The company treats employees like “work family.”

It starts before an applicant has been offered a job.

WCCO Belting skips traditional conferenceroom “interrogations” and instead invites candidates on a full factory tour. “Because when you go on a walking tour, it becomes less of an interview,” Koch said.

“We want it to be a dialogue – a conversation.

And we want the person to be able to ask us as many questions as we ask them, because they need to be comfortable with us just like we want to be comfortable with them.”

Here’s something else that applicants notice: “We greet everybody by name,” Koch said.

“It’s a lost art in many corporations. But I heard a long time ago that the sweetest word in any language is your name. And think about it: Don’t you know the name of everybody in your house – in your family? So why not in your work family, too?”

So when co-workers walk around, “we’re greeting everybody by name,” Koch said.

Families are flexible, so WCCO Belting strives to be as well. “We work around daycare;

daycare is a huge issue,” Koch said.

“If they need to come in an hour later and will stay an hour later, no problem. We’ll make it work, because that’s what you do when you have a truly great person: you figure things out.”

So, time off on occasion to attend a child’s baseball game?

“Absolutely. Family first,” Koch replied.

During the interview, Koch thought for a moment about how else the company’s approach shows up. “I can give you three examples that happened in the past 24 hours,” he said.

First, when Koch returned from a business trip, “my supervisors gave me, like, a friend hug,” he said.

“They said, ‘Hey, I missed you. I’m glad you’re back.’ I said, ‘I missed you, too.’ So that’s pretty cool, and I think it’s a great indicator.”

Second, “this morning I got a wedding invitation – one of the factory workers, inviting me to her wedding. That kind of thing happens often, too. We visit people in the hospital because they’re part of our family.”

Third, “I was talking with one gentleman; his father’s quite ill. And he said, ‘Would you pray

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RAVEN INDUSTRIES OF SIOUX FALLS, S.D., HAS PARTNERED WITH GIRL SCOUTS–DAKOTA HORIZONS TO GIVE GIRL SCOUTS “HANDS-ON, MINDS-ON” EXPERIENCE IN SCIENCE, TECHNOLOGY, ENGINEERING AND MATH (STEM) FIELDS. IMAGE: RAVEN TECHNOLOGIES for me?’ I said, ‘Sure.’ Because don’t you do that with your own family?”

Managers in many fields talk about “servant leadership” and wonder how to exemplify it.

“Well, here’s a way,” Koch said.

“It’s a very good theme that helps you make judgments as different situations arise. Just ask, ‘How would I treat this with my family?’ It’s so simple.”

THE RISE OF RISE

As Trontvet noted, current employees can be the best ambassadors of a company that tries to do things right. And as Raven Industries in Sioux Falls, S.D., has learned, that approach can spark interest among teens as well.

“We start at the eighth-grade level by attending area job fairs,” said Peggy Canter, talent acquisition manager.

“The local schools hold career days, and we’re very much involved in those events – talking with students, telling them about opportunities, showing them our facility.”

Among other products, Raven makes precision agriculture equipment – hightech spraying systems, for example, whose computerized nozzles can spray less when they’re on the inside of a turn and more when they’re on the outside.

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All of which delights the students, who usually are surprised that manufacturing involves such high-tech work.

“Likewise, we care a lot about STEM education, and we have a partnership with Girl Scouts-Dakota Horizons to give Girl Scouts hands-on STEM experience,” Canter said.

For example, the Girl Scouts spend a day at Raven, soldering their own sensor, trying out technologies and learning about STEM opportunities.

For high-school students, Raven offers RISE, or Raven Invites Students to Excel.

“It’s a part-time employment opportunity for high school students where they’ll go to school in the morning, then come here for the afternoon,” Canter said.

Raven workers act as mentors to the students throughout the program, and the students also attend classes on topics such as Interviewing Tips & Tricks, Personality Assessment and other life skills.

“It’s a chance for us to help these young people as well as expose them to manufacturing,” Canter said.

“And we’re hoping they’ll tell their classmates, friends and even their parents about their experience. So it’s another good opportunity to find those team members who might join us.”

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Then there’s Raven University, part of Raven’s commitment to help employees advance in their careers. Raven U offers classes and programs for employees in leadership development, functional skills, volunteerism, personal development and other topics.

“In 2016, over 14,000 learning sessions were experienced in classrooms, workshops, conferences, and online by our team members,” Raven’s website states.

CULTURE AND VALUES

Last fall, Rod Koch of WCCO Belting spoke at a statewide human-resources conference in Bismarck, N.D. His message: Pay and benefits matter – but when workers are surveyed, they say culture and values matter more.

“So do career opportunities and opportunities for growth. Pay and benefits is about sixth on the list,” he said.

Leading by example; showing loyalty before expecting it in return; earning respect rather than just demanding it – those are the real solutions to the workforce shortage, Koch said.

“And from our experience, they work amazingly well.”

Tom Dennis

Editor, Prairie Business

PIONEERS & TRUSTED LEADERS IN WATER PROJECTS THROUGHOUT THE REGION

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ARCHITECTURE & ENGINEERING

AUGUST 2019 VOL 20 ISSUE 8

Slow with the flow At times it takes decades – not just years – to build significant water projects in the region

THIS MAP SHOWS THE ROUTE OF THE RED RIVER VALLEY WATER SUPPLY PROJECT, A PLAN TO PIPE MISSOURI RIVER WATER TO THE RED RIVER VALLEY DURING TIMES OF EXTREME DROUGHT. IMAGE: GARRISON DIVERSION CONSERVANCY DISTRICT

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THIS SCREENSHOT OF A COMPUTERIZED “FLYOVER” PRESENTATION SHOWS SOME OF THE GREENWAY ELEMENTS THAT THE MOUSE RIVER FLOOD ENHANCEMENT PROJECT IN MINOT, N.D., WILL FEATURE. IMAGE: SOURIS RIVER JOINT BOARD

By Tom Dennis GRAND FORKS, N.D. – Diverting rivers, preventing floods and pumping an entire region’s water supply up and over a continental divide? That’s the easy part.

It’s the politics of water projects that’s hard.

A lack of engineering skill isn’t what has kept much of the Garrison Diversion on the drawing board for more than 50 years, or tied up the Northwest Area Water Supply Project in court from 2002 until May. “Whiskey is for drinking, water is for fighting,” the saying goes; and on the High Plains no less than California and elsewhere in the arid West, that has proven to be true.

Here’s a review of the status – meaning the politics – of three of the region’s biggest civil-engineering water projects: the Garrison Diversion/Red River Valley Water Supply Project, the above-mentioned NAWS and the Mouse River Enhanced Flood Control Project, which is meant to reduce the risk of flooding in both Minot and elsewhere throughout the Mouse River Basin.

MOUSE RIVER ENHANCED FLOOD CONTROL PROJECT

As Prairie Business-area residents know, the Mouse River’s 2011 flood destroyed some 4,000 homes in Minot and caused about a billion dollars in damage. As a result, a billiondollar improvement project is underway, and it will help protect not just Minot but also other

Mouse River communities against floods.

But here’s what’s less well known: The area’s recovery has been slow, because of “a perfect storm of economics stacking up against our people here in Minot,” said Ryan Ackerman, president and CEO of Ackerman-Estvold of Minot, the project engineering firm.

That storm starts with the place where the flood did the most damage: the river-valley floor in Minot. “If you look at the housing supply by the Mouse River in Minot, that’s where our affordable housing exists,” Ackerman said.

“In contrast, if you compare that to other river cities in the state, that’s generally where a lot of the nicer houses are.”

And that geographic quirk turns out to matter in key ways.

First, it means that many who got flooded were especially hard hit, because they had few resources to spare. They were left deeply underwater on their mortgages as well in as their homes: “Unfortunately, our population that is vulnerable primarily lives in the river valley,” Ackerman said.

Second, the demography hurt Minot in the city’s effort to qualify for federal funds. The Corps of Engineers’ cost/benefit analysis takes property values into account. That means “lowto moderate-income housing is discounted significantly as compared to housing for the affluent,” Ackerman said.

Moreover, Minot’s existing flood-protection

plan counts against the city, because its presence shrinks the net benefit of a new system.

As a result, “ours primarily has been a stateand local-driven effort,” because Minot comes up short in the Corps’ cost-benefit calculations, he said.

Couple that with proposed federal floodinsurance reforms that could inflate some premiums from $500 currently to more than $10,000 a year, and you’ll see why Minot residents are feeling a bit beleaguered.

But all is not lost. Far from it, Ackerman said.

For one thing, federal agencies such as the FEMA and the Corps are offering as much help as they can. For another, “the state of North Dakota has been an absolutely fantastic partner,” he said.

And for another, the project now is well underway, and the improvements it will bring to Minot and other Mouse River communities promise to be transformative.

That’s because modern flood-protection systems not only lower flood risk but also dramatically increase quality of life.

Similar to Grand Forks, N.D.’s experience, Minot’s planned Greenway “is definitely going to be a game-changer for the region,” Ackerman said.

“In the past, we’ve shut ourselves off from the river – this resource that flows through our communities. But that whole attitude

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SHOWN HERE IS THE MINOT HIGH SERVICE PUMP STATION, A KEY ELEMENT OF NORTHWEST AREA WATER SUPPLY OR NAWS PROJECT INFRASTRUCTURE. THE STATION TAKES TREATED WATER FROM THE MINOT WATER TREATMENT PLANT AND PUMPS IT TO BOTH THE NAWS TRANSMISSION SYSTEM AND MINOT’S DISTRIBUTION SYSTEM. IMAGE: HOUSTON ENGINEERING is changing, as the community is coming to embrace the many benefits the river can provide.”

NORTHWEST AREA WATER SUPPLY PROJECT

“It’s nothing you really want to drink,” said a Bottineau, N.D. resident, speaking to a reporter last year about the town’s water.

“It’s got an odor to it. Smells like rotten eggs when you first turn the faucet on.”

And Bottineau’s not alone. As far back as 1986, state officials recognized that the groundwater supplying many communities in northwestern North Dakota was inadequate and did not meet standards.

The Northwest Area Water Supply Project was the result.

Now, it’s 2019, and the project to bring Missouri River water to 81,000 residents of northwest North Dakota still is far from complete.

But don’t despair, because “the biggest thing about NAWS is that we just came out of a 17year lawsuit,” said Kevin Martin, senior project manager at Houston Engineering in Bismarck, N.D., the lead consultant on the project.

Manitoba had sued in 2002, claiming NAWS could transfer harmful organisms from the Missouri River Basin to the Hudson Bay Basin.

Last year, the province withdrew its objections after winning a say in the project’s water treatment.

Missouri had sued more recently over fears that NAWS would excessively deplete the Missouri River. But the state lost in an appeals court in May, clearing the way for construction to begin.

And just in time: “We can’t use the groundwater supply indefinitely because we’re mining the aquifers,” Martin said.

“Those aquifers have shown a dramatic decline over time. It’s just not sustainable, and the water quality is very poor.”

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Now, “if the next legislative session commits enough funding, we could be wrapped up with the entire project in probably eight years.” And when that happens, “the net result will be water from Lake Sakakawea being piped to serve as a primary freshwater source in Minot and other communities in northwest and northcentral North Dakota.

“Which everyone will be really happy with,” Martin said. “We’re finally getting to the point where we see the light at the end of the tunnel, and we know that it’s not a train.”

GARRISON DIVERSION/RED RIVER VALLEY WATER SUPPLY PROJECT

The original Garrison Diversion would have diverted Missouri River water through thousands of miles of canals for major irrigation, among other projects. But the plan was one of the most contentious in North Dakota history, sparking nationwide debate that included this headline over a Washington Post editorial: “Kill the Garrison Diversion.”

Smartly, the plan’s backers shifted their focus toward a project that would directly benefit many more people. If the Red River Valley Water Supply Project is completed, the 165mile pipeline could – during times of prolonged drought – serve fully half the population of the state, said Duane DeKrey, general manager of the Garrison Diversion Conservancy District.

The pipeline would divert water when needed from the Missouri to the Sheyenne River, giving Red River Valley residents and others access to an emergency water supply. That reasoning – coupled with the fact that the Red River basically ran dry in the 1930s – has won the plan solid statewide and congressional support.

But a few key hurdles remain, including potential downstream opposition, higher priority water projects and the changing landscape of federal environmental rules.

By “downstream,” we mean down the

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Missouri River, not the Red. “Canada doesn’t object to transferring the water,” as a treatment plant is planned and Canadian communities “also could benefit from augmented flows on the Red River during extended droughts,” the Bismarck Tribune reported.

Meanwhile, the NAWS project’s May victory in the state of Missouri’s lawsuit boosts the Red River Valley project’s odds of surviving any similar challenge.

In general, North Dakota lawmakers give higher priority to protecting Fargo and Minot from floods, and that bumps the Red River Valley pipeline back a few places in line. Even so, lawmakers have supported the project in earnest – and it’s vital for them to keep doing so, DeKrey said.

That’s because “things can go south with the federal government, as we’ve seen many times with this project.”

The Obama-era “Waters of the United States” rule is DeKrey’s main concern. A court order has stayed the rule in North Dakota and some 20-plus other states. But should the rule ever take effect, its strict federal controls would make building the pipeline “virtually impossible,” North Dakota Sen. John Hoeven has said.

As a result, the project’s backers want construction to start as soon as possible.

This could ensure the Red River Valley Water Supply Project would be grandfathered in under the old rules.

“So we’re hoping to bid out our early construction late this fall, and then break ground next spring,” DeKrey said. And after that, the $1.16 billion project likely will take about 10 years to complete.

Tom Dennis

Editor, Prairie Business tdennis@prairiebusinessmagazine.com 701-780-1276

STARTUP LINE

AUGUST 2019 VOL 20 ISSUE 8

A new way to rent a home Set Your Rent matches tenants with investors who’ll buy – and rent to the tenant – a home EDITOR’S NOTE:

Adam Zach and Jon Enright are the co-founders of Set Your Rent, a Grand Forks and Fargo-based startup. In May, Set Your Rent won the annual Shark Tank event sponsored by The Chamber of Grand Forks and East Grand Forks.

Recently, Prairie Business sat down with Zach and Enright in The 701 co-working space in Grand Forks to talk about the company and its website, SetYourRent.com. The interview has been edited for clarity and length.

JON ENRIGHT AND ADAM ZACH (RIGHT) PRESENTED SET YOUR RENT, THEIR NEW STARTUP, TO A RECENT SHARK TANK EVENT SPONSORED

BY THE CHAMBER OF GRAND FORKS AND EAST GRAND FORKS. JUDGES AWARDED THE PAIR FIRST PRIZE, ALONG WITH $750 AND NINE MONTHS OF FREE RENT AT THE 701 CO-WORKING SPACE IN DOWNTOWN GRAND FORKS. IMAGE: NICK NELSON/FORUM NEWS SERVICE

Q. A. Q. A.

WHAT IS SET YOUR RENT? Adam: Our pitch to prospective clients is, “What if you could choose any home that’s currently listed for sale, and rent it?”

When clients are interested, they go pick a home that’s listed for sale. If the numbers work, and if the renters will agree to lease terms and a monthly rent amount, then either we’ll buy the house or an investor will, and the new renters will move in.

In most cases, Set Your Rent basically is the matchmaker between the tenant and the investor. And that’s pretty much how it works. We are connecting prospective renters with investors who’d like to invest in real estate.

WHY WOULD PROSPECTIVE TENANTS BE INTERESTED? WHY WOULDN’T THEY JUST GO RENT A HOME ON THEIR OWN? Adam: If they can find the right home, then you’re absolutely right; they don’t need us. And that’s great.

But here’s the thing: If you were to search Fargo for homes to rent, you’d find maybe 90 or 95 homes available. In contrast, if you search Fargo for homes for sale, you’re going to find about 1,500.

So what we’re doing is expanding the renters’ options, especially if the don’t like anything that’s currently on the rental market.

We’ve usually found that there’s a 10-to-1 ratio or better on the number of homes for sale vs. for rent.

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Q. A.

HOW ABOUT INVESTORS; WHY WOULD THEY BE INTERESTED?

Q. A.

IT SOUNDS A LITTLE LIKE THE ARRANGEMENT SOME PARENTS MAKE WHEN THEIR YOUNGSTER GOES OFF TO COLLEGE. THE PARENTS BUY A PROPERTY WHERE THE STUDENT AND SOME ROOMMATES CAN LIVE.

Q. A.

WALK US THROUGH ONE OF SET YOUR RENT’S TYPICAL DEALS.

Q. A.

DO THEY ALREADY HAVE THEIR EYE ON A HOME?

Jon: So for investors, what we’re doing is saying, “Here’s a list of people who are looking in different areas. Here’s how much they’re willing and able to pay in rent, and here are some of the properties they’re interested in.”

Then the investors decide whether buying and renting one of those houses would earn a good return.

By setting it up like this, we solve some of the investor’s problems, because the investor wants good tenants in good homes. Also, we narrow the gap that the investor faces, because the renter is all lined up. The investor doesn’t have to worry about paying for an empty house for weeks or months while advertising for renters and screening them. That’s the kind of thing that will eat away at an investor’s return.

Adam: You got it. We think that’s a great strategy as a parent, because the student probably is able to live rent-free, while their other roommates are paying the mortgage and rent. They’re staying there for three or four years, and at the end of that time, the parents can either keep the property as a rental or sell it and hopefully recoup their investment.

Jon: Usually, a prospective tenant will fill out a form on our website. That will kick us an email, showing us what the tenant is looking for.

Jon: A lot of times they will. They’ll come in with a few options. If they don’t, then we’ll get some information from them about what kind of neighborhood they want, how many bedrooms, their budget, whether they want a garage and so on. Then we’ll send them some options and say, “Maybe some of these will work for you. Or if you like, we also have a realtor who we work with who can you show some homes.”

Adam: And once they say, “We want that one,” we start working with the other side.

If a match is made where an investor likes the tenants’ application and background and says, “Yes, I would be willing to rent to them and I like the property,” then we’d get them set up. The investor would buy the house and then enter into a normal lease agreement with the tenant, just as an owner would do with any other rental property.

Q. A.

HOW DOES SET YOUR RENT GET PAID? Jon: Typically, we’ll charge a fee for connecting the two individuals. After that, we wouldn’t be involved, and theirs would become just a straight tenant-landlord relationship.

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Q. A.

ON YOUR WEBSITE, YOU MENTION THAT IF PEOPLE CAN’T GET A BANK LOAN TO BUY A HOUSE, THEY SHOULD CONSIDER A “RENT TO OWN” OPTION THROUGH SET YOUR RENT. BUT WOULDN’T THE BANK’S DENIAL SUGGEST THAT THEY’RE POOR CREDIT RISKS? Adam: From our perspective, credit scores are less of a concern; we’re more interested in proof of income and the person’s rental history. If you have one bad thing in your background, most banks just check their boxes and if you don’t fit, they just say, “Sorry.”

But from our perspective, if you have a good history of making your payments and the income to keep doing so, why shouldn’t you be given the chance to rent and eventually own a home?

So, it’s not like we’re ignoring credit histories. We’re just more interested in the person’s payment and income histories than we are in their credit score.

Jon: Credit scores can be affected at a young age and tend to follow you around. That’s another reason why we’re not too concerned with them.

Q. A. Q. A.

HOW DID YOU MEET AND BECOME BUSINESS PARTNERS? Adam: We met socially in about 2011 through a mutual acquaintance. We both went to UND, but we were in different programs and graduated in different years – 2009 and 2010 – so didn’t meet there.

I had just started as an engineer at AE2S, and Jon was a manager at Zavoral. Later on, I had two houses that I was using for rentals. We started talking about it, and a little over two years ago, we bought our first house, fixed it up and rented it out.

We thought, “Yeah, this is kind of fun,” and we kept doing it.

TELL US ABOUT YOUR SHARK TANK EXPERIENCE IN GRAND FORKS. Adam: The Chamber of Grand Forks and East Grand Forks does this once a year. This year, it happened back in May, and there were 10 entrepreneurs who went into the Shark Tank.

Each of the 10 gave a one-minute pitch to the “sharks,” so to speak. Then for a few minutes, there was a Q&A. And at the end, they thought that from a strategy and market-feasibility perspective, we had the best idea; so we won! We got a $750 cash prize and a free nine-month membership to The 701 co-working space in Grand Forks. That has proven to be a great place to meet, work with and learn from other entrepreneurs.

Also, the U.S. government and the state of North Dakota, through institutions such as the Center for Innovation here in Grand Forks, have been extremely helpful. We’ve gotten advice from SCORE, the Small Business Administration’s Service Corps of Retired Exectives. InnovateND and the Small Business Development Center also have been big helps.

Jon: We definitely wouldn’t have been anywhere near where we are without the local support that we’ve received. We didn’t really know it was even out there; we were just searching around, asking for help.

But the help we’ve received has been just fantastic, and we’re really happy that we’re here.

Q. A.

HERE’S A QUESTION THAT THE GRAND FORKS HERALD ASKED AFTER YOUR SHARK TANK WIN: WHERE DO YOU SEE SET YOUR RENT THIS TIME NEXT YEAR? Adam: As we told the Herald, If we could have maybe five employees a year from now, that would be fantastic. In recent weeks, we’ve presented at One Million Cups in Fargo and earned some video testimonials that we’ve put up on our website, so I’m hoping we’re on our way.

29

CONSTRUCTION CORNER

AUGUST 2019 VOL 20 ISSUE 8

Clear commitment New technology is doubling the capacity and improving the treatment at Fargo’s wastewater treatment plant

By Tom Dennis FARGO, N.D. – You heard it here first: A Fargo construction project that’s costing close to $150 million is poised to double the size of a certain utility, making it the biggest in the state.

And you’ll probably never hear about it again.

That’s because the utility is wastewater treatment, a civic function that’s absolutely vital but whose builders and operators strive to maintain the lowest possible profile for their operation.

After you read this story, if you never see, hear, smell or even think about the Fargo wastewater treatment plant again, that’ll suit those professionals just fine.

Because unobtrusively but thoroughly dealing with wastewater is pretty much the point.

And upon completion, the expanded plant in Fargo will be less obtrusive but more efficient and thorough than ever before, said civil engineer Karla Olson, senior project manager for water projects for Apex Engineering of Fargo. The company is the project’s lead

consultant engineer.

For example, the plant will have doubled its capacity while occupying not much more of the same footprint in Fargo than it has since the 1930s.

This new capacity will let the plant serve much more of the region. Notably, that will include cities such as West Fargo, whose 460acre lagoons will be decommissioned once the city starts piping its wastewater to Fargo.

Moreover, the treatment will be much faster.

For example, “lagoons are designed to hold water for 180 days,” Olson said. “In the new process, the treatment takes hours, not days.

In fact, it’s less than a day.”

And that faster process still will yield a cleaner effluent than the slower one did, said Seth Lynne, also an Apex senior project manager and civil engineer.

One reason is that the expanded Fargo plant will replace chlorine disinfection with ultraviolet disinfection. Chlorine disinfection involves first

adding chlorine to the wastewater, then adding another chemical to take the chlorine out.

“So, those are pretty dangerous chemicals on site that we’re eliminating,” Lynne said.

“With UV disinfection, there are no chemicals at all.”

The net result will be a plant that better serves an expanded population of more than 270,000 people while keeping a lower profile than before.

“The great thing about wastewater treatment is its economy of scale, which means it becomes much more economical when you can spread it over more people,” Lynne said.

Coupled with its advanced technology, that means the new plant will be “far more efficient and economical for everyone.”

Tom Dennis

Editor, Prairie Business

THIS PHOTO IS LOOKING NORTHWEST AT THE WASTEWATER TREATMENT FACILITY IN FARGO, N.D., AFTER THE FACILITY’S CONSTRUCTION IN THE EARLY 1930S. THE ROAD IS NORTH BROADWAY, WHICH HAS BEEN REROUTED OVER THE YEARS. THE LAND TO THE LEFT IS THE NEWLY OPENED FARGO MUNICIPAL AIRPORT, AKA HECTOR FIELD. THE LAND TO THE RIGHT IS THE TROLLWOOD AREA. IMAGE: APEX ENGINEERING

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THIS AERIAL PHOTO -- TAKEN IN EARLY JULY, AND FROM ABOUT THE SAME ANGLE AS THE HISTORICAL PHOTO -- SHOWS THE TREATMENT PLANT IN ITS CURRENT STATE. THE FACILITY IS NOW SURROUNDED

BY DEVELOPMENT. BUT WHILE THE PLANT’S LATEST EXPANSION WILL DOUBLE ITS CAPACITY, THE PHYSICAL FOOTPRINT OF THE FACILITY WILL STAY ABOUT THE SAME. IMAGE: APEX ENGINEERING

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31

THESE PHOTOS SHOW THE CONSTRUCTION THAT’S NOW IN PROGRESS AT THE FARGO WASTEWATER TREATMENT PLANT. THE WORK WILL DOUBLE THE PLANT’S CAPACITY FROM 25 MILLION TO 50 MILLION GALLONS A DAY. IMAGES: APEX ENGINEERING

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33

Prairie People

AUGUST 2019 VOL 20 ISSUE 8

GORECKI SELECTED TO LEAD UND EERC

ARVIG HIRES BROWN TO LEAD ENTERPRISE RETAIL FIBER SALES

GRAND FORKS, N.D. – Charles Gorecki has been named CEO of the Energy and Environmental Research Center at the University of North Dakota.

Gorecki has been with the EERC for 12 years, the last four of which were as director of subsurface research and development. He started his career with the EERC as a research engineer in 2007, working on carbon dioxide storage, enhanced oil recovery-related projects and reservoir engineering.

PERHAM, Minn. – Katharine Brown has been hired by Arvig as an enterprise retail fiber sales manager.

She’ll lead Arvig’s direct and indirect sales teams through the rapid growth in the Minneapolis-St. Paul metro and surrounding areas.

Brown’s telecommunications background includes working with fiber, copper and co-axial cable providing local and long-distance voice, data services (Internet and Transport), colocation services, wide area networks and local area networks.

CHRISTIE NAMED COO OF EXPANSION CAPITAL GROUP

ZUGER NAMED PRESIDENT OF NORTH DAKOTA STATE BAR ASSOCIATION

SIOUX FALLS, S.D. – Herk Christie has been appointed chief operating officer of Expansion Capital Group.

Christie, who had been serving as vice president of operations, will oversee the company’s underwriting, IT, analytics and merchant support and services departments.

Christie has been with ECG since March 2016.

FARGO, N.D. – Aubrey Zuger, attorney and shareholder with Fredrikson & Byron, was elected president of the State Bar Association of North Dakota.

Zuger has been a member of the association’s board of governors since 2011 and previously served as president-elect and secretarytreasurer.

A University of North Dakota School of Law graduate, Zuger is a former clerk for both the North Dakota Supreme Court and the U.S. Court of Appeals.

DSG HIRES MIKE RODE AS SALES VP PLYMOUTH, Minn. – Dakota Supply Group has hired Mike Rode as its new vice president of sales for electrical products and services.

Before joining DSG, Rode held several leadership roles in electrical manufacturing and wholesale distribution. Most recently, he served as vice president of sales for Viking Electric Supply. He also has worked for General Electric and Eaton.

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KNAPP NAMED DEAN OF UMARY’S BUSINESS SCHOOL BISMARCK, N.D. – Colin Knapp has been appointed dean of the Gary Tharaldson School of Business at the University of Mary in Bismarck.

Knapp is a former Air Force officer who’s coming to Bismarck from State College, Pa., where he was an associate professor at Pennsylvania State University. He holds a bachelor’s degree from Ohio University and a master’s and doctorate from the University of Florida.

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EMINETH HIRED AS A VICE PRESIDENT OF SALES FOR DSG FARGO, N.D. – Brandon Emineth has been hired as Dakota Supply Group’s new vice president of sales for mechanical products and services.

Before joining DSG, Emineth held leadership roles with Familian Northwest and Ferguson, including branch management, sales management and general management.

Most recently, he served as director of sales for the Northwest region.

ARVIG PROMOTES WILKENS TO CYBERSECURITY ENGINEER PERHAM, Minn. – Eric Wilkens has been promoted by Arvig to the role of cybersecurity engineer.

In addition to his position at Arvig, Wilkens is a member of the Air National Guard, where he maintains systems and makes sure current defensive mechanisms are in place.

Wilkens began his career at Arvig in 2015 as a system engineer and spent 3½ years planning and leading system engineering projects. He holds a doctoral degree in information technology, specializing in information assurance and security.

Learn more about this project and Bartlett & West’s involvement at www.bartlettwest.com/news/uofmary

35

INSIGHTS & INTUITION

AUGUST 2019 VOL 20 ISSUE 8

Q.

INSIGHTs & INTUITION How is employee performance management evolving? For example, are alternatives emerging to the traditional annual or biannual review?

In an ongoing effort to drive strategy, build culture and keep employees engaged, Dakota Carrier Network has embarked on a new journey with an Entrepreneurial Operating System, commonly known as Traction.

This system holds us accountable for performing quarterly informal check-ins and annual reviews with employees. These tasks let us get timely pulses on satisfaction and absorb feedback on processes that can be improved.

EOS also emphasizes a close tie between employees, company vision and data, to ensure open discussion and collective problem solving. Employees’ engagement with this tie is discussed in their quarterly check-ins and annual reviews, strengthening the employees’ understanding of how their work contributes to company-wide initiatives.

Nancy Bjorndahl Business Manager Dakota Carrier Network Bismarck, N.D.

Performance management has become about coaching employees to success, rather than evaluating past performance.

Providing frequent, regular feedback lets employees make immediate improvements and know that they are moving in the right direction.

The modern workforce is living in a world where immediate feedback is the norm, whether it’s getting “likes” on social media or consumers giving product reviews. They are not prepared to wait for an annual review to get feedback.

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Kara Lombard Executive vice president and chief people strategies officer Choice Bank Minneapolis

PRAIRIEBUSINESSMAGAZINE.COM

Sarah Meusburger Human Resources Director Banner Associates Brookings, S.D.

Performance expectations are built to tie organizational, departmental and individual goals and objectives – clarifying and integrating the vision for the organization within each position for each individual.

Performance management has evolved from the standard yearly review process to a more frequent one-on-one approach between leaders and employees. This approach is known as “rounding” (whether monthly or quarterly) and is used to get information and allow feedback and track progression of work in a more timely fashion.

Employees are empowered with frequent dialogue with leaders to help improve processes and enhance performance.

Communication is absolutely the driver of effective performance management. The more communication that occurs between leaders and their staff, the greater everyone’s ability will be to achieve optimal performance.

There’s a direct correlation, and communication with purpose is key.

Some organizations have implemented quarterly conversations as a way to increase communication about each employee’s performance and emphasize organizational direction. Leaders should avoid making assumptions about a staff member’s progress or struggles by being thoughtful in the way they communicate. These discussions should be interactive, and leaders should ask questions, gain input and feedback, praise stellar performance and be direct in addressing issues when necessary.

Abby Morken Chief People Officer Human Resources Business Partner Essentia Health Barnesville, Minn.

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37

BYTHENUMBERs

LEADING ECONOMIC INDICATORS, LAST 18 MONTHS U.S. (50.0 = GROWTH NEUTRAL) Mid-America

AUGUST 2019 VOL 20 ISSUE 8

RURAL MAINSTREET, ECONOMIC INDICATORS, JAN. 2017 – MAY 2019 $ (50.0 = GROWTH NEUTRAL)

70.0 66.0

60.0

62.0 59.7 59.0

50.0 40.0

58.0

55.4

30.0

54.0

20.0

51.7

Economy

Farm Land Prices

Source of graph and quote: Creighton University Rural Mainstreet Index

19

19

19

19

FEB -

APR -

MA Y-

JUN -

- 18 DEC

18 T-

Share of Total Net Worth Held by the Top 1% (99th to 100th Wealth Percentiles) Share of Total Net Worth Held by the 90th to 99th Wealth Percentiles Share of Total Net Worth Held by the 50th to 90th Wealth Percentiles Share of Total Net Worth Held by the Bottom 50% (1st to 50th Wealth Percentiles)

120

“The index ranges between 0 and 100 with 50.0 representing growth neutral.

100

PERCENT

80

JANUARY - APRIL 2019 COMPARED TO JANUARY - APRIL 2018

60 40 20

0

0 -20

MILLIONS OF INFLATION ADJUSTED $

OC

“Based on our manufacturing survey over the past several months, I expect overall growth to remain solidly positive,” said Dr. Ernie Goss, chair in regional economics at Creighton University’s Heider College of Business.”

“The Creighton University Rural Mainstreet Index for June rose above growth neutral for the month. According to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy, the RMI for June indicated positive growth for the region.

SHRINKING EXPORTS IN FEDERAL RESERVE NINTH DISTRICT STATES

AU G

Source of graph, text and quote: Creighton University Rural Mainstreet Index

Farm Equip. Sales

“ ‘Higher agriculture commodity prices and rebuilding from recent floods boosted the Rural Mainstreet Index for the month. Furthermore, despite the negatives from the trade war, 69.4 percent of bankers support either raising, or continuing current tariffs,’ said Dr. Ernie Goss, chair in regional economics at Creighton University’s Heider College of Business.”

- 18

- 18

APR -

- 19 JUN

19 JAN -

- 18 JUN

18 JAN -

- 17 JUN

JAN -

17

0.0

DEC

50.0

18

10.0

1990

-250

1995

2000

2005

2010

2015

Source of graph: Board of Governors of the Federal Reserve System (US)

EDUCATIONAL ATTAINMENT, POPULATION 25 YEARS AND OLDER, 2017 High School or equivalent degree

-500

Some College, no degree Associate’s degree

-750

Bachelor’s degree Graduate or professional degree

-1000

Minnesota

Montana

Wisconsin*

South Dakota

North Dakota

Source of graph and quote: Federal Reserve Bank of Minneapolis

*Includes portions of state outside of district.

Source: Census Bureau

Michigan*

0

5 North Dakota Minnesota United States South Dakota

10

15

High School or equivalent degree Some College, no degree Associate’s degree Bachelor’s degree Graduate or professional degree

ND 26.4% 22.4% 13.4% 21.8% 9.0%

20

25

MN 24.8% 20.9% 11.3% 23.5% 12.5%

US 27.1% 20.4% 8.5% 19.7% 12.3%

Source of graph: U.S. Census Bureau

38

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30 SD 30.8% 22.0% 10.8% 19.1% 9.0%

2018 Project of the Year City Engineers Association of Minnesota

2019 Honor Award

ACEC/MN Engineering Excellence Awards

Interconnect Wastewater Project | After more than ten years of planning, neither the Red River of the North nor state lines would deter East Grand Forks and Grand Forks from collaborating on a costefficient solution for East Grand Forks’ wastewater treatment needs.

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39

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