SCHMID: LOOKING BACK FROM THE LEFT COAST - MAY 12, 2014
IS THERE SOMETHING IN THE AIR? The first week of May turned out to be a risky week for key executives in ND. Paul von Ebers, the CEO of Blue Cross Blue Shield, was fired -- not a big surprise, the Blues lost nearly $73 million in 2013. In Grand Forks, Gerald Groenewold, director of UND’s EERC, was placed on administrative leave. EERC is a research and development organization with about 300 employees. Groenewold had rough patches before. Finally, in Minot, the new city attorney was fired after only one month on the job. She’s fighting back.
THE PLOT THICKENS “Is UND planning to strangle the golden goose?” -- The heading for a letter in the GF Herald from ND Sen. Connie Triplett. She is the wife of the aforementioned Gerald Groenewold. Triplett speculates that her husband’s unexplained suspension may be the first step in an effort to integrate the EERC into the academic portion of UND -- an action which she says would mix incompatible cultures.
THIS DOESN’T LOOK GOOD East Grand Forks has only 8,500 people, so you would think the city would miss a half million dollars. In 1999, the city’s Economic Development Authority made a $510,000 loan which involved the current mayor’s brother. The city appears to have lost track of the loan and no scheduled loan repayments were made. Right now, no one is talking, but the mayor is hospitalized and the development authority executive director who authorized the loan has been placed on administrative leave.
FREEZE AND BE HAPPY Forget the sunny states, CNN Money claims the five best states in which to retire include ND and SD, plus three mountain states: Colorado, Utah and Wyoming. CNN said this about ND: “Residents here have to deal with some of the coldest weather in the country. But North Dakota has its advantages: extremely low crime and even better healthcare. Plus, its residents report the highest level of general well-being in the country.”
UAS AT GRAND FORKS “There is no other location in the U.S. where multiple UAS can fly concurrently.” -- A spokesperson at Grand Forks AFB. The base has a unique combination of unmanned aerial system platforms managed by the Air Force, Border Patrol and National Guard. The base will also be the future home of Grand Sky, a UAS business and research park which will require $300 million of infrastructure.
BE CIRCUMSPECT I once asked a client CEO how he planned to handle a certain business issue. His response was “I intend to be circumspect.” Circumspect means to carefully consider all related circumstances before acting, judging or deciding. Last week, I mentioned a $300 million real estate investment planned by the Barons Group in Dickinson. Barons welcomes investors. A reader of this newsletter responded that potential investors should be circumspect about the extravagant returns promised for the project.
LOSE, LOSE In 2012, UND abandoned the Fighting Sioux nickname and logo. For many, there is still a deeply felt sense of loss. Obituaries in the Red River Valley region often include descriptions of how the person loved the Fighting Sioux. The deceased is sometimes pictured in a Fighting Sioux jersey. Even Sioux Indians clamor for logo gear. It’s not just that the nickname and logo were beloved symbols of ND and the region -- a brand with a value of millions was bungled away by UND leadership. That leadership included a president and athletic director who had recently come to the state with little appreciation for the nickname’s historic significance and popularity.
WIN, WIN The University of Utah has shown another way. Last week the school and the Northern Ute Indian Tribe agreed to a mutually beneficial deal for Utah to continue to use the name Utes. The deal was the result of long and “respectful” negotiations. The tribal chairman said the deal reinforces the tribe’s support for the university and “We are very proud that they use our name.” Score a win for Utah and a loss for a small, but loud politically correct minority.
IS THE SKY FALLING? Alarming headlines have appeared recently in ND media about radioactive waste, “hot” filter socks, and illegal dumping of toxic materials. Scary stuff. A research manager at UND’s EERC furnished a technical explanation of the issue. The materials causing most of the alarm are called NORM (naturally occurring radioactive material) and are only slightly more dangerous than many materials in your home, including granite kitchen tops and watches. The researcher emphasized, that despite the low risk, the oil industry makes every effort to dispose of the materials in accordance with regulations. The illegal disposals involved a small number of irresponsible oil service companies. ND needs a licensed disposal site for these materials.
RECKLESS BEHAVIOR "Most of our crashes out here involve inattentiveness, complete disregard for traffic laws and also alcohol issues and drug issues that we're seeing with the increase in people." -- A ND Highway Patrol officer referring to the high number of traffic fatalities in the Oil Patch. The NW Region, which includes Mckenzie and Williams counties, has over half the state’s traffic deaths.
GIVE UP CRIME A few years ago, I concluded here that many ND criminals were simply inept -- they should either obtain training or give up a life of crime. Darrell Boggs (37) surfaced this week to remind us the problem hasn’t gone away. The Hazen man had a clever plan to keep himself out of jail -- his 17-year-old associate would perform purse snatchings and Darrell would drive the getaway car. The plan was executed -- the boy knocked an elderly Jamestown woman to the ground and took her purse. The boy and Darrell sped away in an SUV. Then things went terribly wrong: a state trooper attempted to pull them over on I-94, Darrell floored it and fled into Barnes County, where he left the Interstate and became stuck in a slough. Darrell faces 19 charges, including 13 felonies.
LEAVE THE DRIVING TO US Weather, track repairs, heavy traffic from the Oil Patch and high volumes of other products are among the reasons given for Amtrak delays in ND. Add another indignity -- until September 30, westbound Amtrak passengers will be bussed from Fargo to Minot.