RESPEC 2020 Annual Report by RESPEC

KNOW-HOW IS EVERYTHING. 2020 | ANNUAL REPORT

2020 | respec Annual report

Table of 04

Message From the CEO

Contents

2020 Highlights

Persevering Amidst a Tumultuous Year

Our Leadership Board of Directors Walter D. Jones, Lead Director* Joseph D. Adams, Jr.* Matt R. Emerson Brian G. Iverson* Todd J. Kenner Jason T. Love John S. L. Morgan Stephen T. O’Rourke* Alfred J. Serrano* *External Director

Corporate Officers Todd J. Kenner Philip A. Welling Jason D. Miller Debra A. Shewfelt Tabetha A. Stirrett Matt R. Emerson Jason T. Love John S. L. Morgan Steve L. Steinheimer Denise J. Brickley Meagan L. Chaddick Stephen Kan Rick R. Moser Jay R. Nopola Russell A. Persyn Daniel T. Rauchenstein Karla R. Lipp

Pictured on the cover: Cody Kreitel, PE Geotechnical Engineer for Infrastructure. Packrafting the Kenai River on Skilak Lake, Alaska. Photo provided by Tim Watson.

Chief Executive Officer/President Chief Financial Officer/Treasurer Chief Information Officer Co-President, RESPEC Canadian Subsidiary Co-President, RESPEC Canadian Subsidiary Senior Vice President, Infrastructure Senior Vice President, Water & Natural Resources Senior Vice President, Mining & Energy Senior Vice President, Data & Technology Solutions Vice President Vice President Vice President Vice President Vice President Vice President Vice President Corporate Secretary

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Another Step Toward Fulfilling Our 2025 Vision

Projects

2020 Financials

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Message from the CEO 2020. A year like no other. Memorable, to say the very least. It has certainly left an impression on me. Two words stand out in my mind as defining 2020: perseverance and resilience. Looking back, RESPEC had a great year, even with the difficulties of COVID-19. Do you know why we had a great year? We have a talented team. And how do I measure a talented team? How they respond during difficulties. Time after time, I watched greatness in action. RESPEC employee-owners balanced their personal and professional responsibilities. I saw them come together to support each other, not to mention our families, clients, and communities. Despite the many challenges we all faced throughout 2020, RESPEC grew and built on our successes. Our perseverance and resilience were ever-present.

“RESPEC has withstood the test of time— and we will continue to do so together.”

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To deal with COVID-19’s challenges, RESPEC took steps to focus on the health and financial welfare of our families and clients. We created a COVID-19 page on our employee portal, communicated health guidelines and changing directives, provided flexibility regarding remote working, and requested that employees provide daily screening information. With each new action, RESPEC’s employee-owners rose to the occasion, and I am profoundly thankful for their hard work. At times, that work was in the office. Other times it was at home in front of our families. Often, our work was at clients’ sites after coordinating travel in challenging environments. But every time, we truly came together as a company. We focused on what needed doing. We put our energy into what was in everyone’s best interest, and our work paid off. For instance, RESPEC took a significant strategic step through the acquisition of PDC Engineers, Inc. (PDC), an Alaska-based company, which brought together two 100 percent Employee Stock Ownership Plan (ESOP) companies. The acquisition opened new opportunities in the infrastructure market and strengthened our underlying motivations: » Preserve employee-ownership culture. » Create opportunities for professional growth. » Stretch our differentiating technical capabilities across markets. Acquiring PDC enhanced RESPEC’s financial contributions. Our gross revenue, net revenue, and operating income all grew on a year-over-year basis of 37%, 44%, and 86%, respectively. Our 2020 revenues exceeded $77 million, which allowed us to contribute $3.6 million to employee retirement and our year-end discretionary bonus programs. This contribution represents more than 50% of RESPEC’s pretax, preretirement/bonus earnings. Still, even as I consider the accomplishments of the past year, I remain focused on evolving RESPEC through our commitment to our culture. Our PACT—Passion, Accountability, Caring, and Teamwork—drives everything we do. Through PACT, we build a highly collaborative workforce that strives to support careers, reward our employeeowners, and meet the challenges of our client partners, all while giving back to our communities. That’s our perseverance and resilience in action. Over and over, RESPEC stood up and stood out, putting our colleagues, projects, and communities first. Simply put, the RESPEC family rose to each challenge and made sacrifices to ensure that we all remained healthy, safe, and supported. I am extremely humbled and proud to be a part of RESPEC. Thank you! Stay safe,

Todd Kenner

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2020 Highlights

56 21

Employees

promoted across our business units.

hired to increase our market presence.

642 1,500 Clients

Projects

provided support by our employees.

were active in 2020.

$114k Invested on education assistance, training, and software subscriptions.

Global experience

France Canada

ROmania Austria Belarus switzerland Czech Republic Slovakia Finland Poland germany

ireland united kingdom

italy

turkey Ukraine

Kyrgyzstan Kazakhstan

malaysia vietnam thailand

China Philippines United states Indonesia

spain

mexico

MOROCCO PANAMA

Ghana

COLOMBIA

Pakistan

israel

ECUADOR

kuwait

peru

Venezuela chile

Brazil

Congo Ethiopia

419

Trees

South Africa

planted in honor of our employees.

Mongolia

Mozambique AUSTRALIA

Infrastructure

Market

introduced as a fourth business unit.

Water Environment Federation (WEF) 2020 Project Excellence Award Proclaimed Leader in Watershed Solutions.

new zealand

Madagascar

Tanzania

argentina

ACEC National Award for Flood Information for the Big Sioux Project First South Dakota Project Ever Recognized in the Top 20

india

Offices in 14 states and 2 Canadian provinces

91% participation of eligible employees in our Employee Stock Ownership Plan

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Persevering Amidst a Tumultuous Year RESPEC started 2020 anticipating a strong and successful year. Within weeks, we had to provide our first communication regarding the new coronavirus. Six weeks later, COVID-19 was declared a pandemic, forcing governments to implement stay-athome orders, travel restrictions, and modified workplaces. RESPEC, like all employers, developed strategies for protecting employees, clients, and their families from the

invisible, highly contagious COVID-19. Our goals for professional achievements didn’t change throughout 2020–but how we accomplished them did. Whether moving quickly to get employees up and running from home or conducting pre-shift health screenings to track virus transmission and minimize exposures, RESPEC did what we always do: came together in the best interest of our employees, followed closely by the best interest of our clients.

James Brown, Director of Health & Safety (H&S), led RESPEC through each transition. Our H&S program had been refocused even before we could have anticipated what COVID-19 would deliver to us, and that refocus couldn’t have happened at a better time. Overall, the H&S program seeks to inspire a culture within RESPEC that encourages employees to be mindful of their own safety as well as the safety of others. But get down to the brass tacks, and you’ll see how the program works day in and day out to manage risks and ensure that our employees are safe, our client relationships are maintained, and our employee-owners’ value increases. Thanks to early interventions by James and our team of Human Resources staff and office managers, a path was laid out for how RESPEC could complete work remotely, travel safely to job sites, and respond to each office’s local and everchanging public health orders. This team documented recommended steps in a Pandemic Preparedness Plan. RESPEC continues to implement it, and we all remain the better for it.

DEC 11 APR 14

MAR 18

Medical Coverage Extension Includes COVID-19 Testing and Treatment

U.S. Families First Coronavirus Response Act International Travel Terminated MAR 11 MAR 20 Domestic 95% of Employees Travel Limited Working Remotely

FEB 27

JAN

FEB

JAN 27

MAR

FEB 26

Follow-up 1 RESPEC Health COVID-19 & Safety Directive Health & Safety Directive st

Preparations Begin for Employees Working Remotely

AUG 21

55% of Employees Working Remotely

APR 24

Fieldwork Travel Policy APR

MAR 15

U.S. Food & Drug Administration Approves PfizerBioNTech’s COVID-19 Vaccine

MAY

JUN

JUL

AUG

SEP

OCT

NOV

APR 28

MAR 27

Safely “Reopening” Offices Guidance

U.S. CARES Stimulus Package

APR 3

U.S. Paycheck Protection Program Application Submittal

MAR 12

JUL 6

Pre-Shift Health Screenings Begin

1st Weekly Companywide Update and Establishment of Employee Portal COVID-19 Dashboard

Meanwhile, we worked in cobbledtogether workspaces alongside significant others and children. Dishes piled up. Grocery store trips were complicated. People got sick. Then, weeks turned into months, and everyone realized that lockdowns would remain through 2020. RESPEC reevaluated the circumstances and began concentrating on how to mitigate added stress and mental health concerns for our RESPEC family. Our proven, steady culture—as reflected in our PACT—made it easier. RESPEC remained committed to being: » Passionate about well-being. » Accountable to lend a hand. » Caring for those in need. » Team that is coordinated in its efforts.

Our PACT guided us forward. Sometimes we highlighted it. Other times it shone on its own. Either way, it empowered us to stay strong and reach out across our company and within our communities. RESPEC employees persevered. We stayed focused, completed our tasks, and adapted to new realities. What’s more, we looked around and found ways to help. Encouraged a colleague. Volunteered to complete someone’s task. Shared from our own time and means. Set up a fundraiser. Our strength and determination allowed us to succeed. RESPEC ultimately salvaged 2020. Better yet, we polished the year off and crafted something meaningful out of it. We grew as individuals and a company. Together, we stayed vigilant. In fact, early on, in a companywide call, Todd declared, “We will come out of this stronger.” He was right; we did.

RESPEC employee-owners came together for one another and for our communities from the start of the pandemic throughout the rest of 2020.

DEC

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400 3 D - P R IN T E D FA C E S H I E LD S A 3D-printed face-shield design was circulating online, and I used it to create 100 headbands for healthcare workers. They just had to affix a three-hole punched transparency sheet to it. I thought that’d be all, but then RESPEC coworkers learned about it and started chipping in funds. From the end of March through May, my 3D printer basically ran all day. I’d bag up ten in a ziplock along with sheets and instructions and send them out. I just felt like it was a low-cost, super useful, and reusable way to be helpful during a tough time.

C a ro l y n M c C a n n o n

WO R K IN G F R O M H O M E When lockdown began, my husband and I found ourselves working from home with our three kids under age 5. Every morning, we’d review our work schedules to make sure we didn’t have conflicting meetings so we could keep the kids on their routine. But I’ll be honest—my teammates’ collective understanding helped a ton too. Everyone was more than accommodating when one of my kids popped in to a meeting or call to say, “Hi!”

Karri Scott

P R E - S H IF T H E A LT H S C R E ENI NGS Back when this all started, during a PDC office managers’ meeting, we were talking about safe workplaces. We were developing a survey to screen employees who had COVIDrelated symptoms, but the information wasn’t trackable. A lot of methodologies were brought up, and I suggested an electronic form. I made a sample form that populated into a spreadsheet and showed how we could automate the data. That way, office managers could see who hadn’t filled out the form while keeping medical info private.

C o l i n Fay

RESPEC RECONNECT The idea for RESPEC Reconnect started small. Call someone up to say hi. Plan an interoffice, virtual happy hour. But it grew. Everyone was looking for a way to connect. Lunch roulettes and game nights happened. Photo contests and ‘breathers’—which simply meant, ‘Hey, take a break from feeling isolated’—happened too. I was reminded I’m part of something bigger. Getting to see and joke around with colleagues really helped me out.

S te ve M a r s

Face Shields

made and sent to healthcare workers across the U.S.

80% O f E m p l oy e e s juggled work from home alongside others.

~60% Remote Work occuring since March.

45k+

pre-shift forms submitted.

screenings

100% of employees logged into 2+ virtual events.

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>0.25% Of Employees billed time to our Families First Coronavirus Response Act and Emergency Family and Medical Leave Act funds.

1,000

Essential Workers

recieved baked goods, fruit, and granola bars.

5,200 M e a l s provided for those in need.

10+

employees donated canned goods and blood.

fundraisers

232

face masks

given to Infrastructure employees.

C OVID - 19 SUP P ORT Having COVID-19 was rough. I’m not gonna lie. But what really stressed me out was wondering how I was going to keep projects on track while being home sick and quarantining. But my colleagues, like Amy Mestas, stepped up to take on my tasks. They let me know it was okay to take the time I needed to recover without worrying about work. I think that, more than anything, gave me encouragement. But I will say, going forward, get your vaccine as soon as possible. COVID-19 is not something to play around with.

J a k e H o ra z d ov s k y

B RE A KFA ST T H URSDAYS For years, we’ve eaten breakfast together in our office on Thursdays. That was how the idea came about: building off something we did and missed. Then we got excited because it was more than supporting essential workers—we were keeping small businesses afloat too. So we created a list of breakfast places and raised money each week. We’d place an order, pick it up, and deliver it to medical and public safety organizations. It made my day as much as I think it made theirs.

Becca Golliher

FOOD B A N K F UND RAI SERS When Richardson got locked down and RESPEC employees started staying home, I felt that we were lucky because we could transition with little impact, but so many others weren’t as fortunate. They were losing their jobs, closing their stores, or even struggling to feed their families. I figured we could help our community by doing a food drive, and RESPEC employees came together to make that happen.

J e n n i fe r V i l c h e s

C LOTH FAC E MASKS It’s pretty simple. My neighbor is a total sweetheart. She was making face masks for her family and surprised my family with some too. Then I started thinking about how we all needed them at work and we couldn’t just run out and get them. So I asked HR, “Hey, my neighbor makes face masks, and we need them. Should I ask her?” I got the goahead, and she agreed. In a matter of days, with the help of her kids, she sewed 250 face masks. It couldn’t get more homegrown, grassroots than that, could it?

Re g g i e D a l l a i re

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Another Step toward Fulfilling Our 2025 Vision Both Todd Kenner and Matt Emerson had flown to Southeast Alaska from their respective hometowns—Rapid City, South Dakota, and Anchorage, Alaska—to promote RESPEC, introduce old friends and clients, and gain new ones. As they sat at a conference table in the PDC Juneau office for a meeting, their camaraderie was evident. Their talk filled the room with words about PDC’s acquisition and its becoming RESPEC’s newest business unit: Infrastructure. Todd and Matt had made each other’s acquaintances back in 2012. At the time, PDC was taking steps to become an Employee Stock Ownership Plan (ESOP) company and include outside members on its Board of Directors. PDC’s former president recalled Todd from a conference during which he had spoken about RESPEC being an ESOP company and suggested inviting him on the PDC Board. “We wanted someone who had ESOP experience,” Matt said, “so we invited Todd for an interview.”

“When I got the call asking me to come to Alaska, right away, I remembered making the connection at that conference,” said Todd. He checked with RESPEC’s Board of Directors before confirming. They approved. Not long after, he agreed to become a PDC

their respective Boards of Directors to investigate what expansion might look like. RESPEC wanted a fourth business unit, and PDC wanted to expand into the Lower 48, as Alaskans are prone to calling the contiguous U.S. Todd and Matt were leading their companies to find individual solutions.

People talk about stars aligning.... This acquisition is just that

In fact, expanding PDC’s services was the theme of the July 2019 PDC Board of Directors’ meeting. Todd was in Anchorage along with all of the other Board members to decide how to move forward.

Board member. “I think that’s what’s cool about this relationship—it all started with employee ownership. It really is the thread that ties us together.” Todd and Matt noted that both companies had been focused on growth and that orientation had driven

“We spent a day brainstorming how to expand our services and get into the Lower 48,” said Matt. A whiteboard had words on it for fodder–stuff like technology, water, and environment. “We took a break, and Todd and I started talking. Lo and behold!” Matt flung up his hands. “It clicked. We needed to see if this puzzle piece fit.” When the PDC Board reconvened, Todd and Matt pitched the idea together. Every member approved looking into a

PDC offers unique solutions to the cold-region challenges that its local

environment presents and works extensively throughout Alaska. They ser ve more than 250 communities and provide ser vices globally, reaching as far as Antarctica and Greenland. PDC specializes in the Facilities, Transpor tation, Utilities, and Land Development Ser vices market sectors.

merger or acquisition. Then and there, Todd immediately stepped down from the PDC Board. “Our alma maters played each other,” Todd joked, “and I lost the bet.” Todd and Matt laughed, highlighting the bond they share and the corporate cultural values they exemplify. Of course, the truth is, Todd stepped down so there wouldn’t be a conflict of interest while those discussions occurred. “Seriously, though, it came down to strategy,” Todd said, “and what RESPEC and PDC wanted to do in the marketplace.” He admitted that it was a big decision for everyone and added that “it really is simple why we thought it was the right thing to do.” RESPEC and PDC joining forces was undoubtedly a once-in-a-bluemoon opportunity. “People talk about stars aligning,” said Todd. “This acquisition is just that…all of a sudden, here’s this partner who complements RESPEC.” He smiled. “When it’s right, it’s right. That’s what this

acquisition represents.” Over six months, RESPEC and PDC figured out the next steps, one at a time. “The driver was: Make sure we keep the ownership of all employees,” Todd said. In a normal acquisition, negotiations occur with a small group of owners. With RESPEC and PDC each being an ESOP company, the deal focused around the fit, both culturally and strategically. The respective Boards of Directors wanted to ensure that the transaction was fair to all of the trust participants. They determined merging the RESPEC and PDC ESOPs, which resulted in RESPEC acquiring PDC. “It was a big step for RESPEC. One hundred new employees—a fourth of their size,” Matt said. “Lots of pieces were integrated and brought together.” “But you know what?” Todd asked, smiling. Then, he answered his own question, “Our cultures align.” Matt nodded. “We have seen that over and over again…and I’ve no doubt they’ll continue to.”

“Transforming Challenges Into Solutions” is PDC ’s

guiding philosophy and, much like early Alaskan pioneers, they tackle big challenges with innovative, practical solutions.

As a forward-thinking, Alaska-based design company with five decades of success

in providing multidisciplinar y ser vices to clients in arctic and polar regions, PDC ’s work has shone. PDC clients come from governmental, industrial, institutional, educational, and commercial sectors. Now as RESPEC ’s Infrastructure business unit, five offices remain in Alaska along with more than 100 professional and technical staff, featuring talented engineers, sur veyors, planners, draf ters, and environmental analysts.

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Projects

1 2 3 4 5 6 7 8

Geothermal Energy Launched in Canada Gold and Silver Revived in the Comstock Lode Water Quality Restored in the Long Island Sound Bridge Replaced in Yellowstone National Park Infrastructure Upgraded in Antarctica Transportation Plan Created for Northwest Alaska Mine Safety Improved through a Monitoring Application Payment Processing Simplified for a Fortune-500 Company

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6 8

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These two geothermal power plants help Canada take its first step in fulfilling their new vision for clean power.

Geothermal Energy Launched in Canada Finding Funds for New Efforts Fort Nelson, British Columbia, Canada Torquay, Saskatchewan, Canada Fort Nelson First Nation and Deep Earth Energy Production Corporation Dr. Matt Minnick, Geothermal Manager Mining & Energy

RESPEC helped the clients determine how much energy they could get out of a field, which enabled them to secure additional funding for wells.

Annually, a 20–megawatt power for 20,000 households and reduce CO2 emissions by 114,000 metric tons–the equivalent of removing 32,000 cars.

Fort Nelson First Nation (FNFN) and Deep Earth Energy Production Corporation (DEEP) are creating the first geothermal power plants in Canada, and they called in RESPEC to develop their reservoirs. The brines will create electricity from low-temperature, sedimentary resources to use for green energy. The fact that RESPEC’s Mining & Energy (M&E) business unit is leading the way for renewable energy in Canada isn’t the only striking factor about these projects. A Natural Resources Canada (NRC) grant supports the FNFN and DEEP efforts to develop emerging power programs, and RESPEC helped to secure both grants. The FNFN received $40 million and DEEP received $25 million in grant money— the largest funding amounts the NRC has ever given to geothermal projects in Canada. These funds have opened opportunities for other financing and allowed RESPEC to take part in research, drilling and testing, and development of wellfields and geothermal power plants. RESPEC now serves as a subconsultant to Barkley Project Group, Ltd., the prime consultant for DEEP, and manages the technical consulting and engineering for

subsurface issues. According to Dr. Matt Minnick, M&E had to decide how much power we could get out of a resource, which helps to justify further funding. We’ve already done prefeasibility studies, supplied specifications, and identified testing wells. “Once we get through reservoir testing, we develop the bankable feasibility reports,” Matt says. DEEP’s testing concluded in March 2021, and the FNFN’s testing will conclude in August 2021. Bankable feasibility reports enable investors and debt financers to lend their support to the next steps for FNFN and DEEP—not to mention supplement the private equity that they’ve garnered so far. But what does continued funding mean for RESPEC? “RESPEC starts by drilling and testing one well. Then, depending on the results, we could drill up to six more,” Matt says. “And if they’re successful? We expect to drill many more wells, which means more geothermal power plants and better access to green energy.”

Clarke Lake Geothermal Resource ThreeDimensional Conceptual Model

Since our project’s inception, RESPEC has offered vision along with competent geological analysis and engineering.

Through the uncertainties of project development, RESPEC’s ever-available Dr. Matthew Minnick has been patient and encouraging. The challenges of our northern Canadian project have been respected; and our 100% indigenous ownership has been encouraged to move forward with confidence and an understanding of the geothermal resource being invested in.

John Ebell, Senior Project Manager Clarke Lake Geothermal Project Barkley Project Group, Ltd.

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The Comstock Lode was the first major silver discovery in America and remains the largest, prompting Nevada to make its slogan “The Silver State.”

Gold and Silver Revived in the Comstock Lode Combining Historical Records With Modeling Virginia City, Nevada, United States

Tonogold Resources, Inc. Kiersten Briggs, Project Geologist Mining & Energy Gregory Crouch, Historical Consultant & Freelance Nonfiction Writer

Miners from the nineteenth century pulled the modern equivalent of almost $600B from the mine – with 57% silver and the rest gold.

RESPEC’s compilation of historical and geological data allows us to conduct targeted tests for silver and gold. Drilling ranges from near surface to 2,400 feet deep.

Kiersten Briggs and Gregory Crouch, a Historical Consultant to Tonogold Resources, Inc. (Tonogold), bring unprecedented collaboration to our Mining & Energy (M&E) business unit. Kiersten contributes the geology and modeling, and Gregory adds in the history. Where their ideas overlap, magic happens. They help Tonogold search for silver and gold ore in the famous Comstock Lode. Known for having the most valuable concentrations of high-grade silver ore in the U.S., the area has received economic and political attention since its 1859 discovery. During its bonanza days, miners could only profitably remove easily extractable, high-grade deposits. Today, the probable existence of large, lower-grade deposits propels modern exploration.

Gregory scours historical mine reports and old newspapers that tracked the Comstock Lode like modern media tracks the tech industry. “The mines were precise and monitored closely,” Gregory explains. “If surveys were 1 inch off, it meant forfeiting thousands of dollars to your neighbor.” This precision ensures that RESPEC has accurate maps to develop our models. When Gregory’s research reveals evidence of mineralization below the nineteenth century cutoff grades, Kiersten plots those locations into her three-dimensional (3D) geological model of the Comstock Lode. Together, their work helps M&E staff identify drill targets, thus “de-risking” the search for ore. “What the old-timers left behind may very well make the cut for us, and it’s

RESPEC’s job to do the geologic and historical detective work to find the most likely targets,” says Kiersten. “Thankfully, the district has been well documented from the beginning.” RESPEC’s 3D model paves the way for targeted drilling, which is essential to proving if developable ore remains. In fact, Tonogold already has drills turning out on the old Comstock Lode. New technologies for extracting and processing ores, along with an increase in silver and gold prices, allow modern miners to develop much lowergrade orebodies. Nineteenth century newspaper clippings predict that someone will make a fortune mining millions of tons of Comstock rock that was once considered unprofitable. With RESPEC’s help, Tonogold hopes to fulfill those prophecies.

MineSight 3D model of the Comstock district showing surface veins, proposed drilling, and underground workings.

Level map of underground mine workings from the Becker Atlas, 1883. The workings were digitized and brought into a MineSight 3D model.

Surveying of accessible underground mine workings has been integral to building the 3D model of the district.

The East Yellow Jacket shaft building constructed in the 1870s.

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Over 6,000 miles of streams and rivers feed into the Long Island Sound, and RESPEC modeled the quality of each one.

Water Quality Restored in the Long Island Sound

Using Models to Make Decisions Connecticut, United States Connecticut Department of Energy and Environmental Protection Cindie McCutcheon, Staff Engineer Water & Natural Resources

Low levels of oxygen in water can kill aquatic life and reduce their resistance to disease. RESPEC’s “what-if” scenarios factor in nitrogen concentrations to restore balance.

RESPEC’s tools to run the models can put information directly into the hands of decisionmakers so they can determine their best options for improving water quality.

“Long Island Sound faces ballooning nitrogen pollution,” Cindie McCutcheon says, “but RESPEC is helping combat the problem and restore the Sound.” Nitrogen is critical for life and appropriately present in fertilizers, but excessive levels can be problematic in fresh water and deadly in aquatic environments. It overtakes oxygen, upending habitats and harming people’s way of life–from food and drink to recreation and property values. In coastal saltwater embayments, the impacts of too much nitrogen are magnified. For instance, eelgrass, a home to aquatic life, withers. Damage becomes exponential–and sometimes irreversible. The Connecticut Department of Energy and Environmental Protection (CTDEEP) needed help identifying and rectifying the pollution. They turned to RESPEC’s Water & Natural Resources (WNR)

business unit. To start, we established a baseline watershed model to show how water moves across landscapes to lakes, streams, rivers, and ultimately the Sound. “Once we calibrate the flow of water across the landscape,” says Cindie, “we factor in quality.” This component is the second part of RESPEC’s work with CTDEEP: returning water to its clean, healthy, and sustainable state. Many solutions are available to reduce excessive nitrogen. One is to funnel runoff into wetlands, which prevents it from entering the ocean and allows oxygen concentrations to return to healthy levels. Other solutions are costprohibitive or not viable, limiting clients’ options. Fortunately, RESPEC’s models help justify and optimize funding for solutions. We provide scientific validation and tools that equip clients to easily share and explain what is at stake.

“Our models will be available over a cloud-based tool, thanks to help from our Data & Technology Solutions team,” Cindie says, referring to the Scenario Application Management (SAM) tool. SAM presents the data in an easy-touse, hands-on app and allows CTDEEP to view results, run scenarios, and see improvements. As nitrogen levels decrease and oxygen levels increase in Long Island Sound, beach closures can cease. Plants, wildlife, and people can return. RESPEC is partnering with CTDEEP to determine how pollution is entering watersheds. Together, we will work to minimize its impacts, reverse its damage, and prioritize future investments.

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Yellowstone River Bridge is 604 feet long and crosses 80 feet above the water. RESPEC’s new bridge length will be 1,175 feet long and 176 feet tall.

Bridge Replaced in Yellowstone National Park

Developing Expertise through Long-Term Design Yellowstone National Park Wyoming, United States Western Federal Lands Highway Division Subconsultant to Jacobs Mike Rotar, Manager Water & Natural Resources Tyler Blue, Engineer Water & Natural Resources

Over half the total bison population in Yellowstone National Park uses this bridge to enter Lamar Valley during their breeding season.

This bridge serves as the only road open in the winter to the communities of Silver Gate and Cooke City, Montana.

Most people know Yellowstone National Park. Those who have visited it may recall a bridge that leads motorists across a river toward the Lamar Valley, which is known as the American Serengeti. This bridge connects the only road that is open year-round, serving as a lifeline for locals during winter. What many people don’t realize is that RESPEC’s Water & Natural Resources (WNR) business unit is supporting the design of a replacement bridge. Mike Rotar, a seasoned civil engineer, and Tyler Blue, a younger engineer who specializes in restoration, are working on this project. They will be working for years to update the Northeast Entrance Corridor. Putting together a team with the right expertise that can stick with the project from start to finish mattered. Mike and Tyler were WNR’s perfect combination. “Taking down the old bridge and designing the new one creates opportunities to rehabilitate the ground and restore the river and small tributaries,” says Mike. “My 20-years’ experience in the area combined with Tyler’s background just made sense.”

Tyler used an unmanned surface vehicle—called a HyDrone™—to survey the river, record depths, and obtain elevations of the riverbed. WNR relied on that data to model the channel bed and inform the bridge foundation design, which is important for a structure nearly 200 feet above water. “I’d never built a model at that scale,” Tyler says. “It was very collaborative.” RESPEC also developed channelmigration maps that are rich in graphical content for the Lamar River and Soda Butte Creek. “These long-standing national park projects require a deep understanding of the natural environment, causing us to spend lots of time thinking about what we’re doing,” Mike says. “They’re akin to research projects.” People like Mike–and now Tyler–turn into experts in the area’s geographical, biological, and environmental factors. This know-how keeps clients returning to RESPEC.

RESPEC is a great partner on the Yellowstone projects. Working in conjunction with Jacobs staff, the blended team is delivering top-notch products. I value the perspective and expertise that RESPEC brings to the projects and know Western Federal Lands Highway Division does as well.

Jeffrey Dobmeier, PE, SE Southwest Manager of Projects, Jacobs

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RESPEC designed McMurdo to share diesel and wind power with New Zealand’s Scott Base. However, U.S. equipment operates at different frequency, so conversion occurs beforehand.

Infrastructure Upgraded in Antarctica

Overcoming Logistical Dilemmas McMurdo Station, Antarctica National Science Foundation Subconsultant to Leidos Robert Posma, Principal Electrical & Fire Protection Engineer Infrastructure

In Antarctica, finding the balance between warm, chilled, and frozen conditions is challenging. Heaters prevent refrigerated storage areas for food and equipment from freezing.

When aircraft lands on a blue-ice runway, like the one at McMurdo, the flexible ice reacts to the added weight and visibly ripples.

RESPEC designs with a project’s life-cycle forefront, factoring in solutions that work for Antarctica. We have the longest logistical supply chain in the world and needed McMurdo Station’s data center to be easy to put together, easy to get going, and easy to maintain. RESPEC brings the experience, wisdom, and talent—the “engineering mind”—that helped us meet our goals.

Dan Carow Antarctic Contract Support Project Manager | Leidos

Robert Posma carries his calming, patient presence with him everywhere, even when he finds himself in Antarctica. He’ll tell you that things might not go according to plan, but that doesn’t reflect on the quality of their outcomes. Take for instance McMurdo Station, a U.S. logistics hub and research center that is part of the U.S. Antarctic Program. Robert has spent two decades working for the Program, sometimes traveling to the continent. The National Science Foundation (NSF) is working with RESPEC’s new Infrastructure (INF) business unit as a subconsultant to improve its data capacity and enhance its user services. INF designed additions to the data center, including operational components such as servers and storage. To provide the NSF with a help desk for maintaining and distributing laptops and equipment, we developed renovations for an existing building. Our solutions were ready to implement in August 2020 but the COVID‑19 pandemic interrupted the project. Logistics for projects in Antarctica— or “the ice,” as folks affectionately say—always pose challenges. Usually, one ship per year brings materials, and its arrival is based on icebreaker availability. Throw a global pandemic into the mix, and things really get delayed.

Robert notes that those challenges grow bigger during winter. The NSF hopes that by spring 2022, which is the end of summer in the Southern Hemisphere, the upgraded data center will be complete. Construction may be delayed, but RESPEC’s solutions remain exemplary. For instance, consider any data center’s high heat load. RESPEC approached the heat with a natural solution. “We made use of the free cooling,” Robert laughs. “Now, the cold, outside air is economized for the chilled system.” In Antarctica, while it might be frigid and construction might take longer, RESPEC will continue to be there for McMurdo for the long haul.

2020 | respec Annual report

Northwest Alaska only has 1,500 miles of public roads. California has the same geographic footprint but 11,000% more roads–a total of 175,000 miles.

Transportation Plan Created for Northwest Alaska Offering Solutions That are Community-Sensitive Northwest Alaska, United States Alaska Department of Transportation & Public Facilities – Northern Region Pat Cotter, Infrastructure Business Development Director & Planning Services Manager Infrastructure

Approximately 135,000 Alaskans live in the region and rely on aviation for travel and commodities. About 89,000 flights to and from the area occur annually to assist them.

Alaska is warming at 2.5 times the rate of the Lower 48. Extended, hotter summers mean more wildfires that burn longer, increasing carbon emissions and perpetuating warming.

I am Koyukon Athabascan. The middle Yukon River area in Northwest Alaska is my home, my family, and my community. When RESPEC asked me to work with them, I discovered we shared a high sense of responsibility to reach out and incorporate rural and Alaska Native voices in the planning process—and we have done our best to achieve that. We wanted the plan to reflect where they have come from, where they are, and where they want to be.

Joy Huntington, President Principal Consultant, Uqaqti Consulting, LLC

Survival techniques may vary from place to place, but it impacts RESPEC’s solutions everywhere we go. The Alaska Department of Transportation & Public Facilities (DOT&PF) recently contracted RESPEC’s planners in our Infrastructure (INF) business unit, newly acquired from PDC Engineers, to weigh ancestry, safety, and access against weather and cost in Northwest Alaska. This rural region, which is larger than California, is threatened by economic and meteorological factors that are out of the residents’ control, affecting their very existence. Pat Cotter has a long history with the DOT&PF and has tracked the development of this project since 2014. When the DOT&PF was ready to move forward, INF staff offered solutions that met the DOT&PF’s needs. “Transportation plans look different in Alaska than in, say, Illinois,” says Pat. “Here, we are seeking to maintain these people’s culture. How many planners get that opportunity?” INF staff evaluated issues and looked for gaps over the next 10 years in the DOT&PF’s transportation network. Then, we factored in economic drivers, population changes, and the impact of aircraft on runways, among other things. Finally, we produced a report focusing on three alternatives: protect, mitigate, or retreat. Over and over, RESPEC returned to the theme of resilience as a guide for the report. Whether rural and Alaska Native people stay to battle the elements or decide to move, their ability to adapt and RESPEC’s sensitivity to their hardship must prevail. What strikes Pat about the Northwest Alaska Transportation Plan is how the communities are “truly at the mercy of nature.” He points to the islands of Shishmaref and Kivalina as examples. “They are facing a real existential crisis,” Pat says. “It’s their ancestral home, and they can’t stay unless they pay a lot.” RESPEC knows that our solutions must respect communities’ values, livelihoods, and histories—and they do.

2020 | respec Annual report

Mosaic is one of RESPEC’s largest mining clients. For over 3 decades, we’ve offered them mining solutions. Now our mine monitoring app integrates technology solutions too.

Mine Safety Improved through a Monitoring Application

Giving Clients Data Control Brazil

Mosaic Fertilizantes, S.A David Gallegos, Director, Professional Services Data & Technology Solutions Cody Vining, Manager, Rock Mechanics Mining & Energy

Mosaic has six mines that have produced 426K tonnes of potash and 2.9M tonnes of phosphate, and RESPEC helps these mines remain stable and avoid flooding.

Potash and phosphate are chemical compounds used in fertilizers for roots, flowers, and fruits that support growth and water retention.

Underground mines shift and settle. Sometimes movements are harmless. Other times they compromise a mine’s integrity. Tracking, predicting, and countering these movements are important to most mining companies as they strive to ensure employees, conditions, and resources remain protected. The Mosaic Company (Mosaic), a long-standing RESPEC client, took the safety of their employees and the stability of their mines to the next level with our help. Mosaic tracks mine movements using convergence stations, which are installed underground and measure the distance between two points. Mosaic staff had been taking manual readings from these convergence stations and entering the data into Excel spreadsheets. Then they calculated and interpreted the results. However, as Mosaic adds convergence stations, assessing trends in the time-series is increasingly cumbersome. They worried about gaps or errors and knew they had to count on the outputs. Cody Vining of RESPEC’s Mining & Energy (M&E) business unit was working on Mosaic’s contracts. He had an idea to create an app that compiled convergence station data to improve mine monitoring and tracking. He knew, if any anyone could do it, it was RESPEC’s Data & Technology Solutions (DTS) team. Cody approached DTS’ David Gallegos. They came up with a solution that stores and synthesizes data, making it more accessible and easier to visualize. Plus, it alerts mine personnel to changing conditions. This tailored app would enable Mosaic to overcome their reliability challenges and could be used as a prototype for other RESPEC initiatives. “Cody’s a real pathfinder,” David says, “He figured out a way to better meet clients’ needs by bringing DTS in.” His forging a path forward allowed RESPEC to venture into new territory. Over the next few months, RESPEC developed the app to help clients look for movement trends on a dashboard and address concerns proactively. Once we finished the app, Mosaic loved it and signed up for enhancements and support services, including the release of the app and guidance from Cody. Now, RESPEC continues to improve upon the app. For instance, a coming version will have maps embedded with color coding that easily show where movement is occurring and will have an enhanced dashboard that provides summaries, graphs, and trends. RESPEC proved, yet again, that our business units working together add value for every client–and we can’t wait to do it again.

2020 | respec Annual report

RESPEC’s payment processing system saves the client $40M annually.

Payment Processing Simplified for a Fortune 500 Company

Saving Clients Millions of Dollars United States

Large U.S. Telecommunications Company Andrea Worthy, Senior Project Manager Data & Technology Solutions Jerry Lacy, Principal Architect Data & Technology Solutions

The payment processing system has processed $2 billion so far, and the client expects to add $36 million more to processing each day over the next year.

Access to broadband internet is expanding across the U.S. Now rates are 97% in urban areas, 65% in rural areas, and 60% in tribal areas.

The contract between RESPEC’s Data & Technology Solutions (DTS) business unit and a confidential telecommunications company in the U.S. proves that RESPEC can provide solutions to any client. In this case, RESPEC delivered a payment processing system that saves the client up to $40 million per year. To learn how, just ask Andrea Worthy, the senior project manager, and Jerry Lacy, the principal architect. “From concept through design,” says Jerry, “we turned our project into a topten initiative for the client.” In 2016, a gentleman from the telecommunications company contacted DTS after he saw a white paper published by the RESPEC billing team about reconciling payment processing issues. Although he asked questions, he didn’t have the authority to initiate a contract. “Eventually, the client signed a small Statement of Work for a Proof-ofConcept focused on PCI-compliant payment processing,” Jerry says. Almost a year later, Jerry received an unexpected phone call. The gentleman asked us to develop a road map for creating updates to their payment processing system.

“The client owned these individually operated telecom businesses. Each one had its own payment processing platform,” explains Andrea. “Someone asked, ‘If we merged them, would it save us money?’ ” The short answer: Yes. In 2020, RESPEC designed a centralized system for our client’s customers’ one-time payments, which we rolled out in the fourth quarter. It has processed more than $2 billion. “DTS went from a back-closet effort to being forefront,” says Jerry. “It was like drinking from a firehose. We found ourselves working for a program of critical importance with lots of visibility.” Now, 13 RESPEC employees and 22 client employees comprise our project team. Five hundred other client employees do work related to our custom payment system, from process and operations to data and network management. Our payment processing system saved the client so much money that they requested we enhance our solution by adding recurring payment capabilities.

RESPEC’S CUTTING-EDGE TECHNOLOGY STACK HAS IMMEDIATE AND FARREACHING IMPLICATIONS. Creating a payment processing system for a Fortune 500 company required the brainpower and hard work our developers always offer. They loved the challenge and delivered. Now, the client has consolidated systems and realized substantial cost savings.

Jon Davis Senior Director DTS, RESPEC

2020 | respec Annual report

2020 Financials Share Value

Gross Revenue

123.65

$76 Million

120.60 96.90 94.50

increased by 35%

2020

84.88

2019 2018 2017

2016

29.3 60.5

20.3 16.2

16.3

43.5

14.6

36.4

39.7

Company Market Value ($M)

2020

2019

2018

2017

2016

2019

2020

2018

2017

2016

30.9

Net Revenue ($M)

$9.8 Million RESPEC improved its cash position to $9.8 million as of December 31, 2020, bringing its total assets on the balance sheet to $50 million.

A dj us t e d E B I T DA

$5M

Profitability levels continue to be competitive and sustainable.

14.9%

G r o w t h R at e Revenue compound annual growth rate of 14.9% over the last 10 years.

RESPEC.COM