Author: Press Room

Nolan Smith Promoted

21 April 2021
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Dick Anderson Construction announced that Nolan Smith has been promoted to the position of Project Manager within the Billings location. 

Nolan joined DAC Billings in June 2018 and has been our Project Engineer on Northwest Pipe Fittings, Denny Menholt Nissan, Crowley Fleck renovations and will now be our Project Manager for the Laurel Fairfield Inn and Suites project underway this April.  He is noted as a very dedicated and  hard worker and is a great contribution to the Dick Anderson Construction team.

Should Garbage Collection be a Monopolized Utility?

21 April 2021
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Whether we realize it or not, garbage is an important thing to us.  If it wasn’t, we wouldn’t make so much of it!  And all that garbage is generated by us freely acquiring goods in an incredibly competitive free marketplace, where choice is everywhere and the consumer is king.

Can you imagine living in a place where there was no choice among goods or services?  One brand of car.  One brand of clothing.  One doctor.  One barber.  One sewer service.  One garbage collector.  Stop right there – because in many if not most Montana communities, there is but one brand of garbage collection to choose from, which means no choice at all.  The cost and quality of that service is locked in, and cannot be influenced by consumer choice. 

There is probably no single area of government monopoly creation that is more harmful and less logical than in the Class D garbage collection industry, where state law puts potential competition through a near-impossible certification process at the PSC.  Under the pretention of “consumer protection,” monopolies and near-monopolies are effectively established in almost every Montana community, by slamming the door to market entry and abrogating Montanan’s fundamental right of private enterprise.  It is government protectionism at its worst, inevitably resulting in much higher prices and lower quality service than would exist in an active, open, competitive marketplace.  Every consumer suffers, while a small number of coddled and protected companies reap inordinate profit, by avoiding competition and shedding normal business risk. 

The protected industry, benefitting with its often obscene profit margins, will bring forth a flood of sophisticated-sounding arguments, of course.  For example, they will argue that “uncontrolled competition” destabilizes the market and threatens the quality and reliability of service to the public.  They will warn that “upstart operators” might dump their trash in ditches and on public land, and on and on.  I have heard all these claims and more before the PSC, and I am here to tell you that they are unmitigated nonsense.  I have yet to see one scrap of evidence that proves their arguments.  How can there be?  They are arguing against the role of competition itself.  

How much are Montana trash haulers in monopolized markets over-charging their captive customers?  Because the PSC does not regulate their rates, complete information is not available.  But as an example, it was revealed during one of the PSC’s application dockets that Republic Service’s 2014 Montana Annual Report showed an eye-popping statewide average profit of 41 percent.  This compared with record testimony showing Oregon’s profit margins averaging 8 to 10 percent. 

Monopolistic companies are not, by definition, bad providers.  They are simply creatures of the market conditions under which they operate.  If there is no competition to drive down rates, there is much less incentive to keep rates low.  The function of price signals in the marketplace is removed.  Likewise, if there is no threat of losing market share to another carrier, there is less reason to vigorously pursue a consumer’s business with new offerings, better deals, etc.  Where else can that consumer go?

Rep. Caleb Hinkle’s HB 338 would put an end to these state-sponsored monopolies, but incumbent garbage companies, having a strong vested interest in the status quo, are sure to wage a vigorous, fear-mongering campaign to kill the Hinkle bill and maintain their privileged position. The consumers, as usual, will be underrepresented at the legislative hearings. 

 Who are these consumers?  They include not only every homeowner, but most every landlord, manufacturer, service business, retail business, school district, college, university, local government, and just about every other entity that produced solid waste.  All of them deserve the best possible service at the lowest achievable cost.  They will never see that happen in the absence of industry competition, where monopolies are government-created but not government regulated. 

The stakes could not be higher.  Let’s replace senseless monopoly with consumer choice and economic freedom.  HB 338 is the answer.

Roger Koopman recently retired from the Public Service Commission, having represented PSC District 3 for 8 years.  He has also served two terms in the state House of Representatives from Bozeman

Reason Offers Idea on Marijuana Taxes

21 April 2021
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With marijuana legalization and pension reform on Montana’s policy agenda, the Reason Foundation provided some suggestions to the state legislature about how to best utilize the tax revenues the state gets.

 Reason’s policy experts provided testimony on Montana’s proposed recreational marijuana bill, House Bill 670. Their comments to the Taxation Committee suggested that marijuana tax revenues be used to pay down pension debt and noted HB 670 wisely aims to “pay for obligations already on the books, while avoiding adding future obligations via new programmatic spending.”

Reason Foundation is an extension of Reason Magazine, published since 1968 advocating “free minds and free markets” covering politics, culture, and ideas through news, analysis, commentary, and reviews from a libertarian perspective.

 Reason’s experts have helped a number of states establish and improve medical and recreational marijuana markets, putting together best practices and recommendations to help lawmakers create safe and fair marijuana regulations. Likewise, their pension analysts have developed gold standards outlining how states can update public pension systems to something more sustainable for employees and taxpayers.  

Reason Foundation’s solvency analysis of the Montana Public Employee Retirement System finds that under typical economic conditions over the next few decades the pension system’s $2.1 billion in debt could grow to $4 billion—doubling the amount Montana expects to spend on the pension plan over the next 30 years. The study also shows how overly-optimistic investment return assumptions are driving the debt, adding $1.3 billion in unfunded liabilities to MPERS since 2001.

Similarly, Reason’s recent analysis of the Montana Teacher Retirement System details why the pension plan serving the state’s educators has nearly $2 billion in debt and only 68 cents of every dollar needed to pay for its promised retirement benefits.

Rails-to-Trails Grant

21 April 2021
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Rails-to-Trails Conservancy (RTC) announced the recipients of its 2021 Trail Grants Program, awarding $145,000 to fill critical trail gaps, with an emphasis on regional and community development goals. Two Montana area groups received trail grants to help build on the vision for the cross-country Great American Rail-Trail.

Yellowstone Historic Center is receiving a $10,000 Doppelt Fund grant for the conversion of a 9-mile abandonment along the Yellowstone Shortline Trail into a multiuse path from the Montana–Idaho border.

Headwaters Trail System is receiving a $10,000 Doppelt Fund matching grant to support the development of the 0.8 mile remaining to complete a 12-mile network in Gallatin County to connect the Headwaters Trail.

The cross-country Great American Rail-Trail is a project developing 3,700-mile trail that connects across 12 states between Washington, D.C., and Washington State. This year’s Doppelt Family Trail Development Fund grants are made in honor of the legacy of the late rail-trail philanthropist, Jeffrey L. Doppelt, who passed away from COVID-19 in January 2021. A member of RTC for more than 25 years, Jeff invested over $800,000 in the nation’s rail-trails, benefiting more than 40 projects nationwide.

“The RTC Trail Grants Program offers support to projects that are often not funded otherwise and are left out of traditional funding streams. These grants often fill critical gaps—both in trail development and funding—delivering returns on investment that bring lasting benefit to communities,” said Ryan Chao, president of RTC. “As we mourn our good friend Jeff Doppelt, we see his legacy and vision live on with the progress we are making on the Great American and on completing trail projects large and small that have significant impact on the nation.”

NILE Names Reisig New Manager

21 April 2021
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NILE Board of Directors announced that Chad Reisig will be the ninth NILE General Manager. NILE began its search for a new general manager in November following current General Manager, Jennifer Boka‘s announcement to depart from the organization next November. Following an intense search, Reisig was selected to fulfill the role. Beginning on July 15, he will join the team to work jointly with Jennifer until November 1, at which time he will take over the position. Reisig is currently an Area Sales Manager for Genex.  He and his wife Kelli reside in Billings, and operate a livestock operations in Hardin. 

Reisig’s background in management, agricultural insurance, the cattle industry, and his lifetime passion for performance horses makes him an exceptionally qualified individual to lead the NILE Organization, said NILE President-Elect, Rick Hamilton.

The NILE Organization anticipates an event filled 2021, providing continued opportunities to promote and embrace Agriculture.

Upcoming NILE events include:

* NILE Century Dinner: April 26

* PBR Billings Invitational: May 14-16

* NILE Rope N Stroke: July 30-August 1

* 54th Annual NILE Stock Show & Rodeo: October 15-23.

Montana Highlights April 15, 2021

21 April 2021
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Former Governor Steve Bullock signed an executive order during the midst of the pandemic last year to allow restaurants to deliver beer and wine with meals. Sen. Ellie Boldman, D-Missoula, and Rep. Ed Buttrey, R-Great Falls, have co-sponsored Senate Bill 320, which will approve the measure permanently. The Montana Tavern Association are in support of the bill, pointing out that people can already have drinks delivered on resort property

Owners Mike Davis and LaDelle Reynolds are closing  the North Valley Ag Center in Columbia Falls on April 30. The facility has been sold to an event business.

Carolina Cotman. a yoga instructor, has opened the Samaa Retreat Center. formerly a bed and breakfast known as the Candlewycke Inn will still be open for traditional lodging this summer but going forward the Retreat Center will focus on wellness retreat experiences.

The  proposal to build an outdoor recreation park near  Flathead Lake has drawn opposition from neighbors. The proposed amendment to the county’s regulations would allow for commercial outdoor recreation activities, which  would specifically prohibit swimming pools, water parks, bowling alleys, RV parks and commercial resorts.

Glacier National Park plow crews are working about a mile beyond the Loop on the road’s west side. In 2020 the plows didn’t make it to the Loop until April 14. Outdoor enthusiasts should expect ice on some portions of the roadway. There is also the threat of avalanches at and beyond Avalanche Creek.

Senior U.S. District Court Judge Charles C. Lovell, the Montana judge who approved a search warrant for the Unabomber’s cabin has retired. The Judge also  presided over the Unabomber’s first few court appearances,

The Newberry, a new event center located at 420 Central Avenue in downtown Great Falls will open this fall. The center plans on hosting 90 plus events each year and bring large numbers of people to downtown Great Falls. More information can be found on the centers website, thenewberrymt.com.

Avelo Airlines has announced flights between Bozeman and Burbank beginning April 30. Avelo is a new commercial airline, which previously operated as a charter airline under a different name. Avelo will be the 10th airline that flies out of the Bozeman Yellowstone International Airport

Work is set to begin soon on the cleanup of  the Harlowton railyard that’s contaminated with asbestos and petroleum. The cleanup of the Harlowton railyard is part of the attempt to revitalize a 180-acre site. About 3,000 cubic yards of asbestos-tainted soil will be dug up site by the end of this month, wrapped in plastic and hauled to a Great Falls landfill. Work will resume this fall by  removing contaminated soil from another area that once had a 500,000 gallon fuel tank.

ROAM Beyond has opened its third location in Northwest Montana. ROAM Beyond’s Cabins sleep three to four people with features such as heated bedding, full bathrooms and induction stoves. Sites include fire pits, heated outdoor gathering spaces and the main attraction: tiny mobile camper units.

St. Peter’s Health officials, of Helena, have announced that the hospital will affiliate with Huntsman Cancer Institute at the University of Utah. The agreement will give patients undergoing cancer and hematology care access to more options for treatment and provide top cancer experts. Huntsman now has six affiliate cancer centers across the Mountain West region. All affiliates are independent, not-for-profit health systems. 

Yellowstone Park officials have announced that they expect to open roads leading to Old Faithful and Canyon Village this week. The first road sections planned to open are from the west entrance to Old Faithful, from Mammoth Hot Springs to Old Faithful and from Norris to Canyon Village. Masks will be required in buildings and at any time when social distancing isn’t possible. Park-run visitor centers will stay closed. Yellowstone National Park Lodges is scheduled to open some of its accommodations later this month. Dining options will be limited to takeout only.

Certain USDA Service Centers in Montana are beginning to reopen to limited visitors by appointment only. Farm Service Agency (FSA) and Natural Resources Conservation Service (NRCS) staff also continue to work with agricultural producers via phone, email, and other digital tools.

Montana producers intend to plant 2.90 million acres (1.17 million hectares) of HRS in 2021, down 12% from last year, but in line with the 5-year average. Montana spring and winter wheat acres typically share an inverse relationship and this year is no different. Montana winter wheat acres are up 13% on the year at 1.75 million acres (708,000 hectares). Dryness has producers on edge, but favorable spring wheat prices will encourage them to plant into dry soil, despite the drought risk. (From Northern Ag Network)

U.S. Secretary of Commerce announced that the Department’s Economic Development Administration (EDA) is awarding a $1.7 million CARES Act Recovery Assistance grant to Bear Paw Development Corporation of Northern Montana, Havre, to capitalize and administer a Revolving Loan Fund that will provide critical gap financing to coronavirus-impacted small businesses in Blaine, Chouteau, Hill, Liberty, and Phillips counties. This EDA grant is expected to create 50 jobs, retain 70 jobs, and generate $3 million in private investment.

A unique ice cream shop has opened in Fairview. DJ’s Ice Cream Parlor & YakAttak Coffee, 308 S. Interstate Ave., sells all sorts of specialty coffees, ice cream, snow cones, cotton candy, according to Jessica Shaffer, who owns the business with her family, Michael, Bethany, Whitney, Dakota, and Tyrell.

The Gallatin County Health Board voted to extend the county’s face mask mandate into May. The mask mandate expires on May 27, and the reopening guidelines expire on May 10. A meeting in early May will be held to determine whether to continue with the government mandate.

Enplanements at the Bozeman Yellowstone International in March were about 80-85 percent of March in 2019. Airport Director Brian Sprenger said they are expecting a continual increase through summer. The airport’s summer flight schedule includes non-stop service to 29 summer markets, a record for the airport by nine airline brands. Delta Airlines is going to resume selling middle seats beginning in May after changing up COVID-19 safety precautions.

The Montana VA Health Care System opened a $12 million state-of-the-art primary care clinic at Fort Harrison VA Medical Center, where veterans will remain in a single appointment room and each provider will come to them in a one -stop shop approach.

AC Hotels, the modern, design-driven brand from Marriott, opened its first property to Montana, the AC Hotel Missoula Downtown. The newly-constructed property is managed by Aimbridge Hospitality. 

The Daily Post Building in Uptown Butte has new ownership, after suffering damage from a fire a year ago. A renowned Butte family known as the Markovich’s closed the sale on St. Patrick’s Day. Corey and his wife, Kristi Markovich are ready to take on the historic building and its current problems. They plan about $1 million in renovations to the building that used to be home to the Irish Times Bar, the Post bar, and Muddy Creek Brewery.

Montana Ranks Low in Business Survivability

21 April 2021
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When it comes to surviving capriciously imposed economic restraints on business, Montana is among the states least likely able to survive. It ranks third from the bottoms according to Wallet Hub.

Only Nevada and Hawaii fared worse.

Across the country around 100,000 businesses having closed permanently during 2020, said WalletHub, in a report on the States With the Most Pandemic-Proof Small Businesses, along with accompanying videos.

Pennsylvania has proven to be the most pandemic-proof state.

“One of the major reasons why …is that it has the lowest percentage of small-business employees operating in highly affected industries,” said Wallet Hub. “Highly-affected industries only comprise 41 percent of all small-business employment in Pennsylvania, the lowest percentage in the U.S., too,” said Jill Gonzalez, WalletHub analyst. “Other key reasons why Pennsylvania has the most pandemic-proof small businesses are that it has experienced the fourth quickest recovery of unemployment claims and it has the fourth largest share of small businesses who received financial assistance from the Paycheck Protection Program (PPP).”

To identify the states where businesses have the greatest potential to recover, WalletHub compared the 50 states and the District of Columbia across 11 key metrics. Below, are some of the highlights regarding Montana:

Pandemic-Proof Small Businesses in Montana (1=Best, 25=Avg.):

* 50th – Share of Small Businesses Operating in High-Risk Industries

* 47th – Share of Small-Business Employees Operating in High-Risk Industries Among Total Small-Business Employees

* 22nd – WalletHub’s “States Whose Weekly Unemployment Claims Are Recovering the Quickest” Score

* 48th – Share of Small Businesses Who Received Financial Assistance from Paycheck Protection Program (PPP)

* 25th – Small Business Friendliness Grade – “State Response to COVID-19” Grade

Huge Victory for Montana Businesses

21 April 2021
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State Director for the National Federation of Independent Business (NFIB) Ronda Wiggers reported on what was a “huge victory for NFIB and all small businesses in Montana” —the liability protection against unfair COVID lawsuits.

NFIB lobbied and testified extensively for passage of Senate Bill 65, which Gov. Greg Gianforte signed into law on February 10. Quite simply, the new law states, “a person is not liable for civil damages for injuries or death from or relating to exposure or potential exposure to covid-19 unless the civil action involves an act or omission that constitutes gross negligence, willful and wanton misconduct, or intentional tort.”

With his signature, the governor made Montana the 17th state to have some form of liability protection against lawsuits accusing small businesses of being the source of someone’s contracting COVID-19, which could have been contracted anywhere.

Wiggers said, “Montana’s Main Street businesses breathed a collective sigh of relief after Gov. Gianforte signed SB 65 into law . . . The Governor’s action sends a clear message that he will not allow Montana small businesses to become victims of frivolous lawsuits. I commend Senator Fitzpatrick for shepherding this vital piece of legislation through the Legislature, and thank the Governor for signing it into law. Small businesses can now turn back to their normal, everyday struggles of keeping their doors open and working towards Montana’s economic recovery.”

Eight more states are racing to enact similar laws after Congress failed to come up with a national standard.

Housing Availability Plunges Nationwide

21 April 2021
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Over the past several years affordable housing has become a nationwide concern. The year 2020 exacerbated these concerns by adding record unemployment claims and record business closures, on top of continuously rising housing costs. One of the starkest factors driving this trend is the lack of available housing supply in the United States.

This figure shows the number of single-family homes available for sale throughout the calendar year in the U.S. for the years 2018-20. Historically there have been roughly 1 million homes for sale at the beginning of the calendar year. This number tends to rise through the spring and early summer, peak in late summer, and fall back to around 1 million by the end of the calendar year. That trend saw a major deviation in 2020.

While the year started with the same number of homes for sale as in previous years, the housing inventory did not rise through the spring, and started falling precipitously through the summer and fall. The available supply of single-family homes for sale at the end of 2020 was little more than half of the inventory at the beginning of the year. As of January 2021, there were less than 576,000 available single-family homes for sale across the country. With  vastly fewer homes for sale nationwide, buyers are acting fast to make deals. The demand side is driving the recent housing market boom. 

From article in Montana Business Quarterly, by Brandon Bridge, “Montana’s Unaffordable Housing Crisis.”

High Lumber Prices Good for Industry – Not so Much for Construction, Building

21 April 2021
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It’s not uncommon that good news for one industry means bad news for another, and so it is with the historically high prices of lumber. While Montana’s wood products industry can expect a good year, it plays a negative role for construction and the housing industry where high prices may push many projects off the drawing boards.

A report in the Montana Business Quarterly about a study done by the Bureau of Business and Economic Research predicts that 2021 will be a “generally positive” year for the lumber business.” Lumber and plywood demand is expected to remain strong and prices remain historically high.

Of course those high prices have much to do with the high demand for housing, which is good for the construction business.

In their report Steven Hayes and Todd Morgan say “New housing starts continue to increase, interest rates are low, and the home repair and remodel markets are expected to contribute to strong wood products sales.”

“Likewise, there are positive signs for Montana on the forest management side. State and federal agencies continue to cooperate under the 2014 Farm Bill’s Good Neighbor Authority to restore forest health, reduce wildfire hazard and harvest timber to meet ecological and economic objectives.”

And, while there were impacts on the industry because of slow-downs caused by COVID-19, 2020 was not a bad year for the lumber industry.

“Remarkably, sales from Montana’s industry during 2020 were up about 15% compared to 2019 because of the higher prices for wood products.” But one part of the country did not have the same experiences as other parts, explained the authors in their article, “Lumber Prices Skyrocket During Pandemic.” In their study they collected data and compared it to other parts of the country.

They concluded, “…the economic fundamentals of supply and demand played out differently in the national markets for wood products (i.e., lumber) versus the local markets for timber (i.e., logs).”

“During the second half of 2020, the demand for lumber used in new home construction, repairs and remodeling far exceeded the supply of lumber being produced by mills in the U.S. and Canada, causing lumber prices to rise all over the country. Meanwhile, sawmills in the Southeast enjoyed very low prices for logs from local landowners. This was due to many private landowners in that region who have been planting and growing trees for decades. The homebuilding bust of 2009 through 2012 meant a lot of timber did not get cut and was left on the stump to keep growing. Thus, the glut of available timber in the Southeast resulted in low prices for logs in the region. Even though more sawmills are being built there, the over-supply of logs is expected to exceed the capacity of mills for years to come. For many landowners the investments they made in planting and tending their forests did not yet pay off, but for mills and mill workers in that region the ample supply of logs was good news.”

COVID increased lumber demand as shutdowns and stay-at-home mandates left many people with time to do home improvement projects, which increased the demand for wood products, at a time the industry was experiencing production slowdowns, supply chain disruptions and general confusion. Imports from Canada also decline at the same time.

“Montana mills were generally able to continue operating throughout the year. Lumber production in Montana for 2020 was 428 million board feet (MMBF), down 10.8% compared to 2019. Employment in the state’s wood products facilities was down 3%, and worker income slipped 7.8% compared to 2019. However, few of these declines can be directly attributed to COVID-19.”

Who owns the timberlands makes a difference in what happens in the market. Montana’s land ownership is different than that in the South. “Different policies for public versus private ownership of timber influence those ownerships’ ability to respond to price signals from markets.”

In the South, “…less than 13% of timberland is publicly owned. Most of the public timberland is state-owned, about 30% of timberland is in corporate ownership and about 57% is owned by private individuals or families (USDA 2021).”

“In Montana, over 62% of timberland is owned by the U.S. Forest Service, another 5% is owned by the state, and another federal agency – the Bureau of Land Management (BLM) – owns about 4% (USDA 2021). About 29% of timberland in Montana is owned by private landowners including Native American tribes, and the amount of privately owned timberland is declining, particularly the amount of industrial timberland that is owned by companies that also own or operate mills.”

“The large share of private ownership of timberland in the South has been a boon for the wood products industry in that region, enabling the growth of the South’s wood products industry during the past three decades of decline in Montana’s industry. That public-private divide has not just impacted the supply of timber, which can hardly be overstated as a major factor influencing the industry. The large amount of private land ownership in the South also contributes to growth in the region’s home construction and population, which have boosted regional demand for wood products and the number of available workers. Canadian lumber companies have recognized these trends and made major investments in the South, buying and expanding mills in that region, which has a large supply of available logs, growing demand for lumber and a growing labor supply”

Timberland ownership has been changing in Montana.

“… Montana had more than 1.6 million acres of industrial timberland in 1989. Today, approximately 800,000 acres of timberland are corporate or industrial ownership.”

Substantial amounts of private industrial timberland have been sold in the past two decades. 

“Changing private ownership of timberland in Montana is not new but has resulted in more public land and less consolidated ownership among private owners. This has raised concern among Montana’s recreation community and may create more uncertainty in timber supply for the state’s wood products industry. Timber harvest from industrial and nonindustrial private lands has been declining in recent years, while the harvest from U.S. Forest Service lands has been increasing, and state-owned harvest has been fairly consistent.”