Author: Press Room

Rocky Mountain Region’s Middle Market Out-performs National Average

7 April 2021
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A new report reveals that the Rocky Mountain region’s middle market businesses are experiencing faster economic recovery and stronger business performance than the national average. 

In 2020, 49% of Rocky Mountain middle market businesses experienced year-over-year revenue growth and 30% added new jobs. This compares to the national average of 46% of middle market businesses that experienced revenue growth and 22% that expanded their workforce over this same period. 

The Rocky Mountain region middle market represents 10,200 companies located in Wyoming, Idaho, Montana, Nevada, Utah, Colorado, Arizona and New Mexico.

The report — Rocky Mountain Region Middle Market 2020 Performance and 2021 Outlook — comes from Dietrich Partners, a Denver management consulting firm, and the National Center for the Middle Market at The Ohio State University Max M. Fisher College of Business.

The region’s middle market executives also report stronger optimism about the future, projecting 8.2% revenue growth in 2021. This growth rate is double the national average and stronger than the region’s historical projections. Further, nearly half of the region’s middle market businesses are planning to add new jobs in 2021, compared to one-third of their peers across the country that are projecting employment growth. 

“The survey data coupled with more than 40 qualitative middle market executive interviews shine a light on the opportunity ahead for the Rocky Mountain Region,” said Celia Dietrich, executive chair and founder of Dietrich Partners. “The optimistic outlook we are seeing from executives is a strong indicator that many middle market businesses have quickly moved out of a defensive business survival mode and into building forward momentum with longer-term business strategy in mind. As the economic recovery continues, businesses are gaining confidence to engage in a more comprehensive strategic planning process in order to strengthen their competitive advantage for the years ahead.”

In planning for the future, 56% of the Rocky Mountain region’s middle market executives report a willingness to invest immediately rather than holding cash. The survey finds that information technology is the top destination for investment dollars across the middle market nationally but investing in acquisitions is nearly twice as likely in the Rocky Mountain region.

“The Rocky Mountain region’s middle market businesses have historically experienced stronger performance than the segment as a whole, with higher revenue and employment growth between 2016 to 2018. Interestingly the region’s middle market businesses experienced declining performance beginning in 2019 and into 2020, yet have experienced a faster recovery and ended the year with a slightly higher revenue growth than the national average,” said NCMM Managing Director Doug Farren. “While the Rocky Mountain region is not immune to the tumultuous economic impacts of the past year and overall experienced dramatic decline in performance alongside the rest of the nation, the region’s middle market is poised well as we continue the economic recovery.”

Diversity, equity and inclusion (DE&I) was another element that was top-of-mind for businesses this past year and was included in the Middle Market Indicator survey for the first time. The Rocky Mountain region’s middle market shares strong views on the topic and is more likely than other areas of the country to have DE&I policies in place. For example, 59% of the region’s middle market companies report having a documented process for ensuring a diverse slate of candidates are interviewed for open positions, compared to the national average of 41%.

The middle market is comprised of companies with annual revenues between $10 million and $1 billion and is a large market segment that drives the health of local economies and generates a disproportionate share of jobs. The region’s middle market businesses employ 2.8 million people and generate a total of $498 billion in annual revenues. 

Unemployment Rate Drops

6 April 2021
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Montana’s unemployment rate dropped in February to 3.9%, after falling to 4.0% in January. The unemployment rate for the U.S. was 6.2% in February.

Yellowstone County is ranked 23rd among counties for the lowest unemployment rate at 4.4 percent, which is about .6 percent higher than a year ago. There are 76,274 people employed in the county which is 2400 less than last year.

McCone County has the lowest unemployment rate in the state at 2.3 percent which is -0.1 percent lower than last year, currently employing 954 people. Glacier County has the highest unemployment in the state at 10.2 percent, which is 1.7 percent higher than a year ago with 4,541 people employed.

Yellowstone County’s unemployment rate is higher than the 3.4 percent rate in Gallatin County. The rates in other urban counties are Lewis & Clark County, 4.5 percent, Cascade 4.8 percent, Missoula 5.2 percent, Silver Bow, 5.5 percent.

Nationally, Montana’s “bounced back” 8th best. South Dakota’s has bounced back the best and Hawaii’s the least best, according to wallethub.com.

“Montana’s unemployment rate continues its downward trend, but too many of our businesses are struggling to find workers,” Governor Greg Gianforte said. “Getting Montanans back to work in good-paying jobs and improving access to trades education and apprenticeships are top priorities as we get Montana open for business.”

Governor Gianforte has worked with the legislature to address the growing skilled labor shortage in Montana by creating the Montana Trades Education Credit (M-TEC). A central element of the governor’s Roadmap to the Montana Comeback budget, the bill, H.B. 252, provides $1 million per year in 50-percent credits to businesses for their employees to learn a trade. The funding level will support as many as 1,000 scholarships annually. Under the program, employers and employees can decide on training that is best for the business and the employee.

“Expanding trades education in Montana and empowering our workforce are critical. I look forward to this bill getting across the finish line and to my desk,” Governor Gianforte said.

Total employment in February fell by 965, and the labor force shrank by 1,521 workers. Total employment includes payroll, agricultural, and self-employed workers. 

After updating January’s preliminary estimates, payroll employment was unchanged in February, remaining at 477,700 jobs. The manufacturing and accommodation and food services industries each added 500 jobs, which were offset by job losses in construction and financial activities.

The Consumer Price Index for All Urban Consumers (CPI-U) increased by 0.4% in February, driven by increases in gasoline prices and a rising energy index. Over the last 12 months the CPI-U has increased 1.7%. The index for all items less food and energy, referred to as core inflation, increased 0.1% in February.

Stockman Bank Awarded with Highest Rating for Performance

6 April 2021
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Stockman Bank of Montana has once again been awarded the highest (5-Star) rating for financial strength and stability from the nation’s premier bank rating firm, BauerFinancial, Inc.

This rating recognizes Stockman Bank for excellence in such areas as capital adequacy, profitability, asset quality and much more. As a leader in local, community banking services, Stockman Bank has consistently earned and maintained this 5-Star rating for 50 consecutive quarters.

As a result, Stockman Bank has received an even higher designation as an “Exceptional Performance Bank”, a status reserved for institutions that have earned Bauer’s highest rating consistently for at least 10 consecutive years.

“This is indeed reflective of Stockman Bank of Montana’s dedication and commitment, not only to its customers, but to the entire community”, reflects Karen Dorway, president of BauerFinancial. “Community banks, like Stockman Bank of Montana, have been on the front lines doing what is necessary to help their neighbors and friends. This is the type of devotion you will only find in a community bank.”

Stockman Bank is Montana’s largest, family-owned, community bank, with 36 full-service locations across the state. Founded in 1953, Stockman is uniquely focused on Montana, with comprehensive banking products and services, along with state-of-the-art online and mobile banking, wealth management and insurance services.

Solution to Billings’ Housing Shortage-New Construction?

6 April 2021
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By Lowell Cooke, Coldwell Banker The Brokers

Faced with an obvious housing shortage it isn’t too surprising that Billings will undoubtedly see a Construction Boom this summer. Evidence is already mounting.

New construction permits in the Billings Metro area have increased steadily in the months from June 2020 to December 2020.  There were 237 permits issued from June 2020 to December 2020, while there were only 131 issued in the same period in 2019.  This increase of 106 permits is an 80% increase over 2019 for that period.  Already in the first two months of 2021, 49 building permits were issued with only 22 in 2020, or up 122%! 

Say Billings is able to maintain an 80% increase in permits over 2020, we could see over 600 permits issued in 2021.  There have not been that many permits issued in 18 years when there were 601 in 2003.

The building permits for the Billings Metro area don’t take into account the homes being built outside the city jurisdiction, where no permit is required.  There is substantial activity occurring on the outskirts also.

February Recap

The inventory of homes on the market continues to remain at record low levels.  As of this writing, there were 120 single family homes for sale in the Billings MLS, Metro area.  There were 168 closed sales this February in the entire MLS system, compared to slightly more in February 2020-176 closed sales.  The number of listings taken dropped to 213 compared to February 2020 of 228.  The year to date, listings taken is down 11.3%, with 439 listings taken this year vs. 495 through the first 2 months of 2020.

Appreciation,  Average Sales Price Still Climbing

Want a reason to sell?  How about the healthy gain in appreciation?  The average, year over year appreciation has jumped again in February to 10.5% for the entire MLS areas.  Januarys was 9.2%.  Great news for sellers, not so much for buying.  The 12-month, year over year average sales price is now at $296,393 compared to $268,314 in February 2020.  That is over a $28,000 increase in one year!

Want to Build?

If you are considering building, there is no shortage of available lots for sale.  There are just under 400 lots for sale in the Billings MLS, Metro area.  With the uptick in building, builders are telling me the challenge is finding the subcontractors available to build the homes as well as shortages and price increases in building materials.  Word to the wise, do not try to be your own contractor.  If builders are having difficulty finding subs, can you imagine trying to do it on your own while you are paying the interest on the construction loan?  Best to find a reputable builder (and there are many) who will hold the construction loan and deal with the delays.  It would be my estimation you should expect to see a completion in construction to take over 6 months.

Montana Highlights April 1, 2021

6 April 2021
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Watercraft inspection stations are opening up across Montana for the 2021 season. Just which inspection stations are open can be seen on a FWP website map. FWP officials claim inspection stations are the state’s first step in preventing the movement of aquatic invasive species (AIS), which can have devastating impacts on Montana waterways. A report on activities from the 2019 season show the agency performed over 113,000 watercraft inspections and intercepted 16 mussel-fouled vessels.

Senate Bill 379 has raised some eyebrows of the Montana PSC and environmental groups as it would allow owners of coal-fired power assets to recover costs for any underappreciated value and expenses from energy consumers. The bill would allow the utility to recover market value for new ownership of a coal power asset.

Watercraft inspection stations are opening up across Montana for the 2021 season. Just which inspection stations are open can be seen on a FWP website map. FWP officials claim inspection stations are the state’s first step in preventing the movement of aquatic invasive species (AIS), which can have devastating impacts on Montana waterways. A report on activities from the 2019 season show the agency performed over 113,000 watercraft inspections and intercepted 16 mussel-fouled vessels.

Canadian coal company Teck Resources has paid a $60 million fine after pleading guilty to pollution discharges that have killed nearly all the fish in nearby waters. Canadian investigators found the mining company discharged hazardous amounts of selenium and calcite into the Fording River from two coal mines in the Elk Valley, just north of Eureka, Montana. Some of that selenium has been connected to fish damage in Montana Koocanusa Reservoir and the Kootenai River. The decision came in a Canadian federal court in Fernie, British Columbia. The fine is 10 times as large as any previous punishment imposed under Canada’s Fisheries Act.

 The city of Williston, North Dakota has negotiated a contract with Delta Airline to bring flights back to Williston. The one-year agreement promises to subsidize SkyWest Airlines which has partnered with Delta for flights to Minneapolis. If passenger numbers fail to make it profitable the city will reimburse losses to the airlines on a quarterly basis.

Revolving Loan Fund.  In February, the U.S. Department of Commerce’s Economic Development Administration (EDA) awarded a $1.2 million CARES Act Recovery Assistance grant to the Northern Rocky Mountain Economic Development District, Bozeman, to capitalize and administer a Revolving Loan Fund (RLF).  Businesses adversely affected by the coronavirus pandemic in Gallatin and Park counties will be eligible for these funds. Special recognition goes to the City of Belgrade, which provided $250,000 for the local match requirement. The Department of Commerce estimates that the total investment will create 40 jobs, retain 125 jobs, and generate $10 million in private investment.

Governor Greg Gianforte and Department of Administration Director Misty Ann Giles have announced the appointment of Kevin Gilbertson to serve as Chief Information Officer (CIO) for the State of Montana.

The Montana Department of Transportation (MDT) announced  a proposal to widen shoulders and add rumble strips to about 7.6 miles of Highway S 421, north of Lodge Grass. The project begins approximately seven miles south of Garryowen 7.6 miles ending approximately one mile northwest of Lodge Grass.  Construction is tentatively planned for 2024 depending on completion of design and availability of funds.

NorthWestern Energy will begin upgrading the Montana Street substation in Butte to enhance reliability for 6,000 electric customers in the area.

North Dakota’s daily crude output for January was 1.147 million barrels, a 4% drop from December. The decline was attributed to high winds in January that caused power outages that interrupted oil production. The outages knocked about 50,000 barrels per day offline.

The U.S. oil pricing benchmark, West Texas Intermediate, has risen above $60 per barrel, where it sat at the start of 2020 before the coronavirus pandemic hit and sent prices crashing. Experts view the current price as a blip. Wells idled during the pandemic are expected to be brought back online. Uncertainty about the Bakken reins as ND producers worry about the potential shutdown of the Dakota Access Pipeline, a prospect that could come out of a court hearing slated for April 9. Producers are considering having to move more oil by rail or potentially trucking it from the Bakken across Interstate 94 past Bismarck and then south to Linton.

Commerce Department Report: Red States Leading U.S. Economic Growth

5 April 2021
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Bethany Blankley, The Center Square

Red states are leading economic growth in the U.S., a new report by the U. S. Commerce Department shows, with South Dakota, Texas and Utah reporting the highest growth.

The report is based on 2020 fourth quarter gross domestic product (GDP) data and February 2021 unemployment rates.

Real GDP increased in all 50 states and the District of Columbia in the fourth quarter of 2020. Real GDP for the U.S. as a whole increased at an annual rate of 4.3 percent. The percent change in real GDP in the fourth quarter ranged from 9.9 percent in South Dakota to 1.2 percent in the District of Columbia.

Montana had a GDP increase of 3.6 percent.

The top three states in quarter-over-quarter growth were South Dakota (9.9 percent), Texas (7.5 percent), and Utah (7.1 percent). All three have Republican trifecta governments, with Republicans controlling the governor’s offices and both chambers of state legislatures.

Texas Gov. Greg Abbott, pointing to the report, tweeted, “The Texas economy expanded at a rapid pace of 7.5 percent in the last quarter of 2020. That means more jobs & more prosperity for Texans. Only one state – and no large state – had better economic growth than Texas. The Texas economy is fire.”

Eight of the states in the top 10 are all Republican-led states. The two in the top 10 that are Democratic strongholds are Connecticut, reporting 7 percent growth, and Delaware, reporting 5.8 percent growth.

Iowa Republican Gov. Kim Reynolds pointed to Iowa’s growth of 6.3 percent, tweeting Iowa is “The #1 state for opportunity,” with a “GDP growth faster than the national average,” and it “had kids back in school since August.”

On March 26, the New York Federal Reserve “GDP Nowcast” model, which estimates real-time economic growth, said that while the U.S. economy grew at 6.1 percent in the first quarter of 2021, it will only grow at 0.7 percent in the second quarter.

Fed analysts attribute the “negative surprises from personal consumption expenditures, manufacturers’ shipments of durable goods, and housing data” as contributing factors for the forecasted decrease. Their forecast for the entire year is roughly 6 percent growth or higher.

According to the U.S. Bureau of Labor Statistics, unemployment rates were lower in February in 23 states and the District of Columbia, higher in four states, and stayed roughly the same in 23 states, with the national unemployment rate remaining at 6.2 percent.

States reporting the highest unemployment rates are Hawaii (9.2 percent) and California (9 percent). States with the lowest are South Dakota (2.9 percent) and Utah (3.0 percent).

Building Permits April 1, 2021

5 April 2021
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Commercial

Housing Authority of Billings/ Fortress Developments Inc, 825 Avenue D,  Com Fence/Roof/Siding,  $217,000

Housing Authority Of Billings/ Fortress Developments Inc, 833 Avenue D, Com Fence/Roof/Siding,  $217,000

MFM Capital LLC/ R & R Roofing, 301 Covert Ln, Com roof, $33,000

MFM Capital LLC/ R & R Roofing, 309 Covert Ln, Com Fence/Roof/Siding, $33,000

MFM Capital LLC/R & R Roofing, 1739 Cody Dr, Com Fence/Roof/Siding, $33,000

Tucker Veltkamp/Beartooth Holding & Construction, 320 Main St, Com New Restaurant/Casino/Bar,  $400,000

Magnus Land Development LLC/Brown Builders Inc, 6301 Absaloka Ln, Com New Townhome Shell, $240,860 

Magnus Land Development LLC/Brown Builders Inc., 6338 Absaloka Ln, Com New Townhome Shell, $240,860

Qwest Corporation/ Mechanical Technology Inc, 3011 2nd Ave N, Com Remodel, $101,000

Sisters Of Charity Of Leavenworth/ Saunders Construction Inc,  1233 N 30th St, Com Remodel,        $11,000

Sisters Of Charity Of Leavenworth /Saunders Construction Inc, 1233 N 30th St, Com Remodel,               $330,000

Julie Treat/Empire Htg. & Cooling, 2510 38th St W, Com Remodel, $250,000

Montana Rescue Mission/ Win-Dor Industries,  2520 1st Ave N, Com Remodel, $4,832

$351,585

J&G Family LLLP/Hi-Line Roofing Of Montana LLC, 6428 Southern Bluffs Ln, Com Fence/Roof/Siding    $27,500

Braun-Ayers Properties LLC/Sprague Construction Roofing Division, 1916 4th Ave N, Com Fence/Roof/Siding, $54,189

Sam’s Real Estate Business Trust/NA,  4420 King Ave E, Com Remodel , $1,200,000

State Of Montana/Vertex Tower, 1204 W Wicks Ln, Com Remodel,  $10,000

City Of Billings/Legacy Telecommunications, 2600 Central Ave, Com Remodel, $20,000

Southgate LLC/NA, 5201 Southgate Dr, Com Remodel, $100,000

Von Lee & Sheryl K Mecham/NA, 1400 Grand Ave, Com Remodel, $100,000

Billings Volunteers Of America/Timeless Construction & Design, 1439 Main St, Com Remodel, $49,151

JDS Real Estate LLC/Com Remodel, Cucancic Construction Inc., 1403 Main St, $5,000

Residential

NA/ Aaron Higginbotham, 2135 Entrada Rd, Res New Single Family, $252,888

Aviara Inc/Trent Buscher Construction, 3132 Falcon Cir, Res New Single Family, $211,609

Boyer Land Llc/Boyer Properties Llc, 2521 Blue Mountain Trl, Res New Single Family, $397,862

Vester A Wilson/MLS Construction Co, 873 Sapphire Ave, Res New Single Family, $267,699

Infinity Home/Infinity Home Llc, 2302 Entrada Rd, Res New Single Family, $241,855

McCall Development/ McCall Development, 1727 St George Blvd, Res New Single Family, $140,648

NA/McCall Development, 1731 St George Blvd, Res New Single Family, $132,182

McCall Development/ McCall Development, 1735 St George Blvd, Res New Single Family, $140,623

Magnus Land Development Llc / Brown Builders Inc., 6301 Absaloka Ln, Res New Town Home, $30,107

Magnus Land Development Llc /Brown Builders Inc., 6338 Absaloka Ln, Res New Townhome   $30,107

Magnus Land Development LLC/ Brown Builders Inc., 6338 Absaloka Ln, Res New Townhome,  $30,107

High Sierra Ii Inc/Infinity Home LLC , 2436 Bonito Loop, Res New Single Family, $245,015

L & L Construction LLC/ Lorenz Construction, 3424 Tahoe Dr, Res New Single Family, $256,029

Infinity Home/Infinity Home Llc, 682 Lakehills Pl, Res New Single Family, $372,626

Diverse Construction Llc/Diverse Construction LLC,  530 Winged Foot Dr, Res New Single Family, $263,284

Boyer Land Llc/Design Builders, Inc.  2516 Aspen Creek Trl, Res New Single Family, $294,582

Frickel, Loretta F & David R/HG Designs, 5244 Amherst Dr, Res New Single Family, $380,000

NA/McCall Development, 1719 St George Blvd, Res New Single Family, $132,682

NA/McCall Development, 1723 St George Blvd, Res New Single Family, $140,623

 Wagenhals Land And Livestock/ Wagenhals Enterprises Inc,  1026 Daylight Ln, Res New Single Family, $325,000

Wagenhals Land And Livestock/Wagenhals Enterprises Inc, 1030 Daylight Ln, Res New Single Family,     $265,000

The ATM Llc/Billings Best Builders Llc, 6302 Absaloka Ln, Res New Two Family, $350,000

The ATM Llc/Billings Best Builders Llc, 6306 Absaloka Ln, Res New Two Family, $350,000

Magnus Land Development LLC/MJ Construction, Inc., 6334 Absaloka Ln, Res New Two Family,  $310,168

Magnus Land Development LLC/ MJ Construction, Inc., 6330 Absaloka Ln, Res New Two Family,          $310,168

A&E Design Announces Staff Achievements

5 April 2021
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The following staff took on new leadership roles within A & E Design, beginning Jan. 1:

—Over a decade of experience and a Master of Architecture degree from Montana State University positioned architect Justin Alexander, AIA, to advance from senior associate to principal at A&E Design. Alexander’s contributions have been integral to the success of many projects throughout the western United States, including the expansion of Stock Farm Club in Hamilton, developments at Yellowstone Club in Big Sky,  and multiple residences in California and Nevada.

— With a Master of Architecture degree from Montana State University and 13 years’ experience in design, Brad Doll, AIA, earned a promotion from senior associate to principal. As an architect, Doll is a problem solver and an unconventional thinker. His work can be seen in notable projects across Montana, like MSU’s Bobcat Athletic Complex, Jeannette Rankin Elementary School in Missoula, and the new community center in Big Sky.

— Chad Schreiner advances to the role of associate with more than a decade of experience at A&E Design in Billings. Schreiner is a project designer and project manager with a Master of Architecture degree from Montana State University, where he graduated with the highest honors. Since 2009, his skill set has contributed to multiple projects in Billings, including the Norther Hotel renovation, the Billings Clinic bed expansion project currently under construction, and the new Elder Grove Middle School.

—  After only three years on the A&E Design staff, brand strategist Brian Sullivan has been promoted to an associate role. Sullivan joined the firm’s Bozeman office in 2018 with a Master of Architecture degree from Montana State University. His diverse background provides unique insights to effectively resolve complex design problems for a wide range of industries, including retail, entertainment, healthcare, and hospitality. Global outdoor equipment brand Mystery Ranch, the Healthy Is Wellness employee wellness program, and Bozeman restaurant Revelry feature Sullivan’s brand strategy work.

— In her 10th year at A&E Design, Jolene Walker, RA, rounds out the list of new associates within the firm. With a Master of Architecture degree from Montana State University, Walker has spent the last decade seeing numerous projects through from concept to construction. Her tremendous design and architecture skill set is evident in multiple historic preservation projects, Montana and California residences, and elementary schools in Missoula, Belgrade, and Townsend, Montana.

Drivers Getting Braver about New Technology

23 March 2021
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AAA’s latest automated vehicle survey finds more than half —58% — of drivers want to see Advanced Driver Assistance Systems (ADAS), like automatic emergency braking and lane assistance, in their next vehicle, with a majority (80%) looking for advancements to these systems. These findings signal that people are open to more sophisticated vehicle technology, which opens the road to boosting public acceptance of autonomous vehicles.

“Consumers will likely have at least one type of ADAS in their next vehicle, and in many cases, this will provide their first interaction with advanced vehicle technology,” said Matt Alfano, Vice President, Mobility Innovation for AAA Northern California. “This experience will influence driver opinion of future vehicle automation and reinforces the need for automakers to improve vehicle technology by expanding testing and focusing on real-world scenarios.”

While Americans’ interest in owning a car with more advanced technology grows, they are still struggling to warm up to the idea of full-vehicle automation. Similar to last year’s results, AAA’s 2021 annual automated vehicle survey found:

* 14% of drivers would be comfortable riding in a vehicle that drives itself

* 86% of drivers would be afraid to ride in an automated vehicle

City Studies Plan to Rent Bicycles

23 March 2021
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The City County Planning Department is going through the process to approve a study regarding the feasibility of a rental program for the short-term use of bikes and scooters in Billings. It’s a service or business available in many cities across the country, which is meant to extend transportation options.

The City of Billings’ MET Transit is considering implementing such a program according to Elyse Monat, Transportation Planner for the City/ County Planning Department.

The $45,000 study was done under the auspices of the Metropolitan Planning Organization (MPO) which for Yellowstone County and Billings is the Policy Coordinating Committee (PCC). The study requires approval of both governing bodies as well as the Montana Department of Transportation. All three agencies comprise the PCC board which must give final approval. 

The MPO (PCC) hired Alta Planning + Design, a multi-state company with offices in many states including Oregon, Utah, Colorado and California. The goal of the Billings Area Bike and Scooter Study, is to determine how a bike and scooter “share program” would have to be established in order to be successful. The program is a service or business model in which bicycles or scooters are available for short-term use, usually 15 to 45 minute trips. Often operated under contract with the municipality, the service allows a user to check out a bicycle or scooter from locations around the city, ride to their destination and then leave the bicycle at some point for someone else to use.

The service is designed to be “a cost-effective, environmentally-friendly, convenient travel option for shorter trips” …which “could serve as an extension of transit and help Billings community members and visitors get around more easily without using a car.”

According to Monat, the survey of 245 Billings respondents 53 percent said they are interested in seeing such a program, 24 percent are not interest, and 14 percent wanted more information. Others sid they like the idea of “bike share” but not “scooter share.” Concerns sited included safety, lack of bicycle infrastructure, and vandalism.

Study recommendations to the City is that should they implement the program it should be a hybrid that would include both bikes and scooters. Hybrid means a bike can be retrieved at and returned to a station which consists of a series of bike racks, or anywhere within the designated service area; bikes are typically referred to as “smart bikes” due to the on-board technology hardware; user transactions can occur through hardware on the bike, web, and/or smartphone application; may include manual bikes or e-bikes.

The business model recommended by the study would be for the city to hire an experienced company that owns and operates a turnkey system, which means the service would be publically owned and privately operated.

The City would rent equiment and contract with the company for the full range of operations support, including installation, operations, sponsorship, customer service, and maintenance. The company takes on the risk of funding and operating the program in return for generated revenues.

Additional funding was identified as possible from sponsorships, grants, or operational funding.

Things recommended to the city in order to provide greater assurances for a successful program included: enable safe, convenient personal mobility such as sidewalks, separated bike lanes, crossing treatments, speed limit reductions, lighting, etc. should be focused around large employers and key services, such as health care and quality food outlets.

Funding for the Billings Area Bike and Scooter Study came in large part from the federal government, with the city and other organizations providing 13.42 percent in matching funds.

The study will be considered by the PCC at its March 18, 2021 meeting, at noon at the County Commissioners’ office in the Stillwater Building.