July 2023 - Southern Oregon Business Journal

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This is always the last thing I write for each issue. Sometimes I think it should be the first. A guiding light. A beacon. But no, it's always the last thing. A recap. A taillight. Or as I like to think of it, the afterburner.

We gathered to celebrate the work life of Ken Trautman the other day as he retired. He co-founded People's Bank and help guide it, shape it and mold it into what it is today. So many of us, including myself, are entrepreneurs that shy away from regulation and a board of directors yet he ran toward it and look what he has done. Starting a bank took tenacity, courage and the trust of the first investors. Bill Jacobs is the last remaining board member from the original board and he spoke at Ken's retirement party about how they were profitable exactly on time at 13 months and they hoped to grow the bank to $60 MM someday and how happy he was that it has now eclipsed $800 MM. Page 6.

State Rep. Pam Marsh put forth a bill that requires local municipalities to allow the conversion of empty commercial properties to residential ones without requiring a zone change. It was created to address our housing shortage. It's been passed and waiting signature by Governor Kotek. I love the idea of mixed use space where commercial is on the ground floor and workforce housing is above. I also get excited by what could happen if we converted many big empty and struggling malls into workforce housing communities. Let me know what you think about it. Page 23.

The feds have allocated $689 Million for Broadband Infrastructure to Oregon. This is designed to improve access to high-speed internet for rural, underserved communities

I'm co-chairing the 26th annual Oregon Connections conference in Ashland this year. Senator Ron Wyden is our keynote speaker. I'm excited about it. Page 38 will tell you all about it. Or go to https:// oregonconnections.info/

Jim Jim@SouthernOregonBusiness.com

PLEASE SUPPORT OUR ADVERTISERS

AMERITITLE- PAGE 4

PEOPLE’S BANK - PAGE 9

MANAGED HOME NET - PAGE 35

SOU - LEADERSHIP BEGINS HERE

SOUTHERN OREGON UNIVERSITYPAGE 22

PROJECT A - PAGE 29

ENERGY TRUST OF OREGON - BACK COVER

Founder

Henderson

Ken and Kathy Trautman enjoying country music at the Jackson County Fair – Photo by Jim Teece

A JOURNAL FOR THE ECONOMICALLY

AND ACUTELY MOTIVATED

A Riveting Exploration of Generational Shifts and the Changing Landscape of Power Book Review

In his thought-provoking book, “The Aftermath: The Last Days of the Baby Boom and the Future of Power in America,” author Phillip Bump takes readers on a compelling journey into the heart of generational dynamics and the profound impact they have on shaping the future of power in the United States. Bump’s astute analysis and engaging storytelling make this a must-read for anyone seeking to understand the intricate web of influences that shape America’s political, economic, and cultural landscapes.

One of the book’s most remarkable qualities is Bump’s ability to navigate complex historical and sociopolitical concepts with clarity and accessibility. He skillfully weaves together historical

events, demographic data, and personal narratives, providing readers with a comprehensive understanding of the forces at play. Bump’s writing style is engaging and informative, making it easy for readers to immerse themselves in the book’s rich content.

“The Aftermath” delves deep into the “last days” of the baby boomer generation, exploring how their influence, both individually and as a cohort, shapes the power structures in the United States. Bump highlights the profound shifts occurring as the baby boomers gradually hand over the reins to the next generations, notably Generation X, Millennials, and Generation Z. Through meticulous research and insightful analysis, he demonstrates the potential ramifications of this transition, from politics and policy-making to economic trends and cultural dynamics.

One of the book’s standout features is Bump’s nuanced examination of the different values, perspectives, and priorities held by each generational cohort. By exploring how these differences manifest in various aspects of society, such as the workforce, technology adoption, and political movements, Bump sheds light on the profound transformations underway and their implications for the future.

“The Aftermath” not only provides an illuminating look at generational

dynamics but also prompts readers to reflect on their own roles and responsibilities in shaping the future. Bump encourages thoughtful introspection about how we can bridge the gaps between generations, harness the strengths of each cohort, and collectively navigate the challenges that lie ahead.

While the book focuses primarily on the United States, its themes and insights have broader relevance for societies grappling with similar generational shifts around the world. Bump’s research and analysis offer valuable lessons for policymakers, business leaders, and individuals seeking to understand and adapt to evolving power structures in an increasingly interconnected world.

“The Aftermath: The Last Days of the Baby Boom and the Future of Power in America” is a captivating and meticulously researched book that combines insightful analysis with engaging storytelling. Phillip Bump’s ability to distill complex ideas into accessible narratives ensures that readers will come away with a deeper understanding of the generational dynamics shaping our society. This book is an indispensable resource for anyone interested in the future of power and the transformative effects of generational shifts in America and beyond.

"The Aftermath: The Last Days of the Baby Boom and the Future of Power in America,"

by Phillip Bum

by Jim Teece

Ihave written about Ken and the bank he co-founded (People’s Bank) many times over the years.

I met Ken while we both served on the Jackson County fair board. One of my companies (Project A) banked with People’s Bank because it is a community bank and the manager of the Ashland Branch was a wonderful community leader (Bob Rasmussen) at the time when we were looking for a new bank. But I only knew the manager of the branch and a couple of tellers.

While I worked with Ken on the fair board, I had the opportunity to see his leadership skills, his tenacity and what kind of human he was at every gathering. I was growing more and more impressed after every meeting, which eventually helped lead me to seek my bank board position.

Ken is also no stranger to serving on boards. He has served on the Asante Health System board, Britt Festival Board and Oregon Banking Association board as well as the fair board to name a few, over the years.

People’s Bank Co-Founder

Ken Trautman retires

He has also received many awards over the years. He even won the first ever Southern Oregon Business award for his leadership during the 2020 pandemic and fires.

I found this when I googled his name while thinking about what I could write about him.

Trautman started his banking career at First Interstate Bank and later worked at Western Bank in Southern Oregon. In 1998, he co-founded People’s Bank of Commerce alongside the late Mike Sickels.

Ken was inducted into the Oregon Bankers Association Hall of Fame in July 2017. This is the highest honor bestowed peer-to-peer on members of the Oregon banking community. Ken was recognized by the organization for his numerous contributions made to the Oregon banking industry and the communities he served.

OBA President and CEO Linda Navarro stated during Trautman’s induction, “In addition to being an accomplished banker and a generous and engaged member of OBA, Ken is a leader in his community. He is well known for his many contributions to organizations in Southern Oregon, along with his great wit and ability to lead and effect change.”

Trautman’s contributions to the Oregon Bankers Association are numerous. He is a past chairman of the OBA and will be assuming the role of chairman of the Independent Community Banks of Oregon in December. He currently serves on the board of the OBA Education Foundation and is a distinguished member of the Foundation’s “Founders Circle.” Trautman previously served on the board of OBA’s wholly-owned subsidiary company, Synergy by Association.

In addition to being an accomplished banker and a generous and engaged member of the OBA, Trautman is a leader in his community. He is a past president of the Greater Medford Rotary and the Britt Music and Arts Festival Association, among other organizations. He is also a current board member of Community Health Center,

Asante Health Systems, Jackson County Fair, and he enjoys fundraising for Jackson County 4-H and Future Farms of America.

Trautman and his wife Kathy enjoy all that Oregon has to offer, including boating, river fishing, hunting and cheering on the Oregon Ducks. Trautman also likes to build furniture, restore old guns, read, coach and train his dogs. When a student at Linfield College in McMinnville, Trautman played on the baseball team.

graduated and met a banker around the campfire that offered him a job. Ken went on became a wonderful community leader, entrepreneur and banking partner to so many businesses over his career.

Ken will join the board of the bank as he retires. I look forward to serving on the board along his side once again. We did amazing things together on the fair board many years ago and I know we will continue to do so again. He is very good about making fun of me at board meetings.

that banked with him and the people that he got to meet over the years. He shared several stories about different individuals that mentored him, gave him breaks, pushed him and inspired him.

I smiled through it all. Here he was, ending a 40 year career in banking and handing over the reigns to the bank he co-founded to the highly capable Julia Beatty, whom he mentored for the last several years into the role, quietly sharing with me that "People" are his favorite thing about his career in Banking.

It really wasn’t until I joined the bank board that I realized that he co-founded the bank and had been a leader in the banking industry for his career.

People’s Bank is a local, community bank that focuses on small, local businesses and over the last 25 years it has grown to 12 branches serving Medford, Ashland, Central Point, Klamath Falls, Lebanon, Salem, Albany and now Eugene with over two hundred employees and around $800 million in deposits.

That growth and success is in large part because of the leadership, tenacity and courage of a kid who grew up in Eagle Point, played baseball in college, went on a hunting trip with family after he

I took Ken to lunch during his last week of employment. As I near retirement age myself (Don’t worry, I have at least 5 years), I wanted to know what it felt like to start a company, grow it and then hand it off and ride into the sunset.

Kathy, his wife, was in Florence that day, getting their second home ready for sale - it sold in one day. They hope to close on a new second home in Arizona soon and he was looking forward to moving everything there in the middle of July.

I asked him what his favorite parts of his career were. After taking a long draw on his Arnold Palmer and thinking about it, he said it was the people. The people that worked with him, the people

People’s Bank is very appropriately named.

Thank you Ken for stepping up to the plate, taking swings at fastballs and curveballs, with your eyes wide open for so many years, hitting a grandslam or three and inspiring so many to do the same and remembering to high-five Kathy as you crossed home plate...

Ok, I don't know anything about baseball and probably screwed this analogy up, which will give Ken new material to make fun of me with at the next board meeting. I look forward to it.

We put people frst.

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By Guy Tauer, Oregon Regional Economist for Coos, Curry, Jackson, and Josephine counties

Rogue Valley Travel Impacts 2022

Preliminary data for 2022 from a Dean Runyan Associates study for the Oregon Tourism Commission shows that total direct travel spending in Oregon rose 23.2% in 2022 compared with the 2021 figure. Travel spending rose from $11.0 billion in 2021 to $13.9 billion in 2022 and was $1.1 billion above the pre-pandemic 2019 level. Travel spending and

earnings showed stronger recoveries than travel-related employment, which by 2022 remained an estimated 1,110 jobs below the 2019 total.

In Jackson County, travel spending recovered from a low of $363.9 million during the pandemic in 2020 to $626.0 million in 2021. In 2022, spending increased to $727.8

million, a gain of 16.3%. Food service ($170.8 million) and accommodations ($135.3 million) combined to account for just less than one-half of travel spending in Jackson County last year. Local transportation and gas ($77.6 million); retail sales ($70 million); food store spending ($55.1 million); and arts, entertainment and recreation ($48.2 million) made up the majority of the rest

of Jackson County travel spending in 2022.

Travel spending rose from $80.6 million in 2020 to $171.5 million by 2022 in Josephine County, accounting for 1.3% of all Oregon travel spending. Food service ($48.1 million) and accommodations ($36 million) combined to account for one-half of travel spending in Josephine County last year. Retail sales ($21.4 million); food store spending ($18.0 million); local transportation and gas ($18.1

million); and arts, entertainment and recreation ($14.3 million) made up the majority of the rest of Josephine County travel spending in 2022. Direct travel spending in 2022 was $30.1 million more than 2019 prepandemic total in Josephine County according to these preliminary estimates.

Employment attributed to travel spending was estimated at 5,700 jobs in 2022, up 16.3% from the prior year in Jackson County. After losing an estimated 1,040

jobs during the pandemic in 2020, the county had regained all but about 100 of the travelgenerated jobs lost during the pandemic by 2022. Industry employment generated by travel spending had a similar distribution as overall travel spending by industry. About 70% of all travel-generated employment was in the accommodations and food services industry. Approximately one out of eight travel-generated jobs were in the arts, entertainment and recreation industry, and 10% were in the

retail trade sector.

Employment attributed to travel spending was estimated to be 2,230 jobs in Josephine County in 2022, up 14.9% from the prior year. After losing an estimated 230 jobs during the pandemic in 2020, the county regained those jobs and is 200 jobs above the 2019 pre-pandemic total. Industry employment generated by travel spending had a similar distribution as overall travel spending by industry. About twothirds of all travel-generated employment was in the accommodations and food

services industry. Approximately one out of five travel-generated jobs were in the arts, entertainment and recreation sector, and one out of 10 jobs were in the retail trade sector.

2022, a 19% increase. There were just more than 5.6 million personnight overnight visitor stays in Jackson County in 2022, according to preliminary estimates.

Tax revenue, mostly from lodging taxes and income tax payments attributable to travel industry income of businesses and employees, totaled $31.9 million in 2022. Local tax revenues increased by 12.9% in 2022, while state tax revenue attributable to travel spending rose from about $15.8 million in 2021 to about $18.8 million in

Tax revenue, mostly from lodging taxes and income tax payments attributable to travel industry income of businesses and employees, totaled $7.8 million in 2022. Local tax revenues increased from $1.9 million to $2.0 million in 2022, while state tax revenue attributable to travel spending rose from about $5.1 million in 2021 to about $5.9

million in 2022, a 15.7% increase. There were nearly 2.0 million overnight visitor stays in Josephine County in 2022, according to preliminary estimates, just eclipsing the prepandemic 2019 total of about 1,971,000 “person-nights” according to Dean Runyan and Associates data.

While some don’t consider travel and tourism as an “exportoriented” industry, the Dean Runyan Associates report does a nice job of detailing why this sector does fit the criteria of an export-oriented industry, due to

the influx of resources that flow into an economy from outside of the region. The travel impact report states the gross domestic product of the travel industry was $6.5 billion in 2022. Overall, the travel industry is one of the three largest export-oriented industries in rural Oregon counties, with the other two being agriculture/food processing and logging/wood products.

For the entire report, see https:// industry.traveloregon.com/wpcontent/uploads/2023/06/ OR_2022_2023-05-24.pdf.

Interactive tables and other Oregon data from the Oregon Tourism Commission: https:// industry.traveloregon.com/ research/category/all-research/.

By Guy Tauer, Oregon Regional Economist for

Coos, Curry, Jackson, and Josephine

counties

– June 26, 2023 – https:// www.qualityinfo.org/-/roguevalley-travel-impacts-2022? redirect=%2Frogue-valley

By Press Release – https://strackersolar.com/press-release-new-evergreenfederal-bank-branch-gets-net-zero-ready-with-stracker-solar

New Evergreen Federal Bank branch gets net zero ready with Stracker elevated solar trackers and a rooftop system

Evergreen Federal Bank is coming to Ashland with a state-of-the-art, fully solar-powered branch. The solar power system, which includes high-power elevated solar trackers trackers by Stracker Solar and rooftop system, was designed to provide all the energy the 6,110 square-foot facility will need and achieve netzero status for the new branch.

“We look forward to serving Ashland,” says bank president Jeff Hyde. “We are pleased to be able to power our new branch with solar energy. We hope to help homeowners and other businesses that have the same goal.”

Each of the four dual-axis solar trackers that will be installed at the parking lot of the bank branch will carry an array of 28 bifacial

panels atop its 20 ft pole and will be furnished with LED lot lighting. This Stracker PV system will produce 114,400 kWh solar power in the first year, which translates to an annual carbon dioxide reduction of 49.5 metric tons – equivalent to the carbon sequestered by 58.6 acres of U.S. forests every year. The additional rooftop system is expected to produce 29,400 kWh power a year.

The crew of Ashlandbased Outlier Construction have been working on the site at 1001 W. Jackson Rd since August 2022, implementing design plans by KSW Architects. Stracker Solar will be installing their solar trackers this week, with the most impressive “array flying” scheduled for the morning of

Thursday, April 20. The rooftop PV system has already been installed by Ashland’s True South Solar.

Once the branch opens this summer, Evergreen Federal Bank will offer solar financing options and solar tours to help customers learn about net zero energy and available solutions for solar power generation.

“We are honored to be part of this exciting step for Evergreen Federal”, says Jeff Sharpe, Founder and COO of Stracker Solar. “Implementing the most sustainable net zero energy path for their own business while offering solar financing to their customers is a great step forward in promoting and facilitating the clean energy transition for our community.”

Businesses and municipalities all over the country are going the extra mile to achieve energy independence, resilience, and long-term savings with net-zero energy strategies. Evergreen Federal Bank is becoming the next in a line of Ashland businesses choosing Stracker Solar’s high-power elevated solar trackers to meet their energy goals.

Image download

About Stracker

Solar: Headquartered in Ashland, Oregon, Stracker Solar has been manufacturing, selling, and installing state-of-the-art elevated dual-axis solar trackers since 2017. Stracker solar trackers are robust and elegant highefficiency solar power systems, generating up to 70% more solar energy than rooftop, carport, or fixed ground-mounted systems of the same size. This efficiency translates to a 55-65% lower carbon footprint as well. The Stracker’s 20-foot single-pole mounting allows continued use of the grounds below, which makes the system ideally suited for parking lots, agricultural and industrial operations, campuses, community solar projects and other dual-use sites.

Elevated Stracker solar trackers installed in northern California and southern Oregon have been documenting unparalleled performance. Based on this success, Stracker Solar has embarked on a national expansion initiative certifying regional fabrication facilities and

enlisting EPC Distributor Partners. The Stracker system is patentpending and carries the valued UL 3703 certification.

By Press Release

– https:// strackersolar.com/press-releasenew-evergreen-federal-bankbranch-gets-net-zero-ready-withstracker-solar

By OIT Press Release https://www.oit.edu/news/students-present-research-

annual-ideafest-and-compete-prize-money

OIT Students present research at annual IdeaFest and compete for prize money

Best Student Project

Presentation

Runner-Up: RV-10

Automated Door System

Mechanical Engineering students Chase Ahrens, Jake Baker, Lee Collins, Amber Conord, and Race Ross

Best student project poster: Ergonomic Lift

Annually, Oregon Tech hosts IdeaFest, an event that celebrates student research while enhancing students’ ability to present their findings. Held at both the Klamath Falls and Portland-Metro campuses, IdeaFest is the university’s largest display of student research.

With the Wilsonville Area Chamber of Commerce sponsoring the May 31 PortlandMetro event, students competed for a chance to win $2,500 in prize money.

Awards presented at the event include:

Best student project presentation: Remote Haptic Feedback Probe (potential future use in laparoscopic surgery)

Darby Cox (Manufacturing), Tyler Jamison (Mechanical Engineering), and Benjamin Schroeder (Mechanical Engineering)

Pedrum Bahrami (Mechanical Engineering), Jim Fields (Mechanical Engineering Technology), and Dawson Golden-Collum (Mechanical Engineering)

Best student project poster runner-up: A Wind-Powered Supercapacitor System for Microgrids

Mohammad Alotibi (Electrical Engineering), Christine Nadiele (Renewable Energy Engineering),

and Greg Wettlaufer (Renewable Energy Engineering)

With the Klamath County Chamber of Commerce sponsoring the June 2 Klamath Falls event, students competed for a chance to win $2,500 in prize money.

Awards presented at the event include:

First Place: Native Bees of Oregon

Nicki Johnston (Environmental Sciences)

Second Place: Building a Development Department for IYS

Taylor Hampton (Marketing)

Third Place: Autonomous Hydroponic NFT System

Benjamin Adams (Electrical Engineering)

By OIT Press Release

https://www.oit.edu/news/ students-present-researchannual-ideafest-and-competeprize-money

Taylor Hampton Building a Development Department for IYS

Benjamin Adams Autonomous Hydroponic NFT System

By Arcimoto Press Release – https://www.arcimoto.com/2023/05/arcimotoannounces-availability-of-the-all-new-electric-modular-utility-vehicle

Arcimoto Announces Availability of the All-New Electric Modular Utility Vehicle

All-New Electric Utility Vehicle Provides Optimal Performance for Industrial, Commercial and Ground-Support Applications

Arcimoto, Inc.® (NASDAQ: FUV), makers of purpose-built electric utility and consumer vehicles, today announced the availability

of a new model offering, the Arcimoto MUV (Modular Utility Vehicle). This marks the first onroad modular utility vehicle in the company’s lineup of small footprint electric vehicles for dedicated professional and commercial use. The Arcimoto MUV, built on the company’s flagship FUV platform, is a

workhorse for daily indoor and outdoor use for industrial mobility customers who need to move goods, materials, supplies and equipment reliably, quietly and sustainably.

“The utility vehicle market represents a tremendous opportunity for Arcimoto and our

new MUV underscores the company’s growth in the urban and industrial mobility segment,” said Chris Dawson, Chief Executive Officer, Arcimoto. “Our customers are seeking highly versatile electric vehicles that are quiet, packed with performance and are reliable for their daily roundthe-clock needs and we are delivering that today to customers who require sustainable and cost-effective utility vehicles to get the job done right. They also value the optionality to make the vehicles their own, depending on their needs, with interchangeable options and add-ons.”

Versatility to Go Anywhere, For Anyone

The Arcimoto MUV is nimble by design and has the versatility to go anywhere – indoors, outdoors, city streets, vineyards, warehouses, e-commerce fulfillment centers, with functional and flexible solutions for several industries including:

• Government and Municipalities

• Homebuilders and HOAs, including Business and Residential Properties

• Manufacturing and Warehousing

• Colleges and Universities

• Agriculture and Landscape

• Construction

• Aviation

• Delivery

The Power and Speed to Do It All With a top speed of up to 75 mph, the MUV has a payload of

500 pounds, yet is small and narrow enough for the tightest of work environments. Its dualmotor front-wheel drive with a single seat, provides optimal utility range up to 102 city miles, fast and easy charging with level 1 and level 2 charging capabilities.

Customizable By Design

The MUV offers interchangeable bed configurations to support medium to light-duty load capacities and can also be equipped with customer-owned items or an ever growing list of MUV accessories for a number of applications.

The rear cargo configurations include Carrier Package (open flat bed), Utility Package (traditional pick up bed), and Cargo Package (enclosed box) that allows for

secure storage and maximum carrying capacity for various commercial transportation uses. Popular accessories include: Basic or custom vinyl wraps for brand exposure, seatback organizer, “West Coast” halfdoors, seat options and more.

Pricing, Availability + To Build Your Own

The Arcimoto MUV is available for purchase today starting at a MSRP of $23,500 for the base Carrier Package. The vehicle can be equipped with the Utility Package at $300 or the Cargo Package add-on for $1,500 or both for full flexibility.

To learn more and to customize and build your MUV to meet the requirements necessary for your application please visit https:// www.arcimoto.com/muv.

By Press Release – June 29, 2023

https://news.sou.edu/2023/06/sou-shifts-to-four-

academic-schools/

SOU shifts to four academic “schools”

(Ashland, Ore.) — Southern Oregon University’s 46 undergraduate and 10 graduate-level academic programs will be distributed among four “schools” rather than the university’s seven current “divisions” when the 2023-24 academic year begins in September.

The organizational shift will eventually eliminate the cost of three director-level positions and will build greater efficiency into SOU’s administrative structure. It is a cornerstone of the cost management plan adopted this spring by the SOU Board of Trustees.

“This move is resourceful and economical, and it also allows us to encourage synergy among academic programs that are related or share common themes,” said Susan Walsh, SOU’s provost and vice president for academic affairs. “We were very intentional in how we grouped the academic programs for each school, evaluating both current qualities and how we expect each program to grow and evolve.”

An example of that strategic placement of programs is in SOU’s new School of Arts & Communication, where the university’s Theatre, Music and Emerging Media & Digital Arts programs will be joined by its

Communication, Media and Cinema department, among other programs. All share components related to performance and production, and placing them under the same school will open avenues of potential collaboration.

The four new academic sections at SOU will be the School of Arts & Communication; the School of Science & Business; the School of Education, Leadership, Health & Humanities; and the School of Social Sciences. Two administrative sections with academic functions – the Provost’s Office and the University Library & Undergraduate

Studies – will operate as stand-alone departments.

Current academic divisions at SOU are the Oregon Center for the Arts at SOU; Business, Communication & the Environment; Education, Health & Leadership; Humanities & Culture; Social Sciences; Science, Technology, Engineering & Mathematics; and Undergraduate Studies.

School of Arts & Communication

The SOU School of Arts & Communication will encompass 11 undergraduate programs and one graduate-level program. The undergrad programs are Art and Art History, Communication, Creative Writing, Digital Cinema, Digital Cinema Production Arts, Emerging Media and Digital Arts, Media Innovation, Music, Music Industry & Production Studies, Shakespeare Studies (offered only as a minor) and Theatre. The school’s graduate-level offering is for the Master of Theatre Studies in Production and Design degree.

David Humphrey, currently director of the Oregon Center for the Arts at SOU, has announced that he will retire at the end of December but will serve as the initial director of the new School of Arts & Communication. The search for a new director of the school is underway, and expected to be completed by early fall.

School of Science & Business

The SOU School of Science & Business will be made up of 14 undergraduate programs and two graduate-level programs. The undergrad programs are Biology, Business Administration, Chemistry, Computer Science, Environmental Science & Policy, eSports Management (offered only as a minor), Financial Mathematics, Innovation & Leadership, Management, Mathematics, Mathematics-Computer Science, Sustainability, Sustainable Tourism Management and Preprofessional Programs in medical fields. The school’s two graduate-

level programs are for Master in Management and Master of Business Administration degrees.

Vincent Smith – currently director of the Business, Communication & the Environment Division – will serve as director for the new School of Science & Business beginning Sept. 1. Sherry Ettlich – currently director of the Science, Technology, Engineering & Mathematics Division – will serve in a support capacity until the end of the calendar year, when she plans to retire.

School of Education, Leadership, Health & Humanities

The SOU School of Education, Leadership, Health & Humanities will include eight undergraduate programs and six graduate programs. The undergrad programs are Early Childhood Development, Education Studies, English, Health & Exercise Science, Outdoor Adventure Leadership, Philosophy (offered only as a minor), Spanish Language & Culture and English for Speakers of Other Languages. The graduate programs are Master of Arts in Spanish Language Teaching, Master of Arts in Teaching, Master of Arts in Teaching with Special Education Endorsement, Master of Arts/Science in Education, Master of Outdoor Adventure & Expedition Leadership and the Principal Administrator and Professional Administrator licenses.

Vance Durrington, currently director of the Education, Health & Leadership Division, will serve as director of the new School of Education, Leadership, Health & Humanities.

School of Social Sciences

The SOU School of Social Sciences will have 13 undergraduate programs and one graduate program. The undergraduate offerings are Criminology & Criminal Justice; Economics, Ethnic & Racial Studies (offered only as a minor); Gender, Sexuality & Women’s Studies; Healthcare Administration; History; Human Service;

International Studies; Native American Studies (offered only as a minor); Power & Politics; Psychology; Social Justice (offered only as a minor); and Sociology & Anthropology. The graduate program is for the Master in Clinical Mental Health Counseling degree.

Dustin Walcher, currently director of the Social Sciences Division, will serve as director of the new School of Social Sciences.

One other current division director – Lee Ayers, who heads the Undergraduate Studies Division – is also retiring at the end of December. Ayers and Carrie Forbes will codirect the University Library & Undergraduate Studies department until Ayers’ retirement. Forbes will then continue as director.

The first element of the four-plank SOU Forward realignment strategy was to resolve structural defects in SOU’s financial base and eliminate what was projected as a $14.6 million deficit by the 2026-27 fiscal year. That job is in progress, after the SOU Board of Trustees approved the cost-management portion of the plan in April, reducing expenses by $3.6 million this year and identifying another $9 million in recurring cost reductions. About 82 full-time positions are being cut through a combination of job vacancies, retirements, voluntary departures, non-renewable contracts and elimination of 24 currently-held positions.

SOU is now moving on to the plan’s three other planks, all of which will prepare the university for strategic growth by diversifying its sources of revenue. SOU will reimagine how it supports faculty and programs seeking funding from external granting agencies and organizations, leverage an ongoing surge in philanthropic support and diversify revenue by pursuing entrepreneurial opportunities – including solar power generation and creation of a senior living facility.

By Jim Teece

HB 2984 – Commercial to Residential Conversion

normal vacancy rates for commercial properties.

In 2022, downtown Portland’s office vacancy rate reached 27 percent. Meanwhile, housing underproduction has led to low vacancy rates and increasing housing costs, with the Department of Land Conservation and Development reporting Oregon needs more than 550,000 new housing units across income levels to accommodate 20 years of population growth and account for current underproduction.

It was amended to allow local governments to require payment of system development charge (SDC) if charge is based on specific commercial to residential conversion policy adopted by a local government on or before December 31, 2023; or is for water or wastewater and offset by any SDCs paid when building was originally constructed. Prohibits enforcement of parking minimums greater than those required for existing commercial or residential use.

The state staff has reported minimal fiscal impact and no revenue impact.

I found info on the bill on https:// olis.oregonlegislature.gov/liz/ 2023R1/Measures/Analysis/ HB2984

HB 2984 passed and is awaiting the signature of Governor Kotek – The bill requires local governments to allow conversion of a building from commercial to residential use without requiring a zone change or conditional use permit.

Shifts in the retail industry toward online shopping, and the advancement of remote work during the COVID-19 pandemic, have played roles in higher-than-

State Representative Pam Marsh put forward a bill (HB 2984) that has passed and is awaiting Governor Signature that requires requires local governments to allow conversion of a building from commercial to residential use without requiring a zone change or conditional use permit. Clarifies housing developed under Act may occur only within an urban growth boundary for cities with populations of 10,000 or greater, and not on lands zoned for heavy industrial use.

Personally I’m interested in this because I own commercial property around the state and would like to find ways to add workforce housing to them to help address the housing shortage. I’m a big fan of mixed use space where commercial is on the ground floor and housing is above. The footprint for housing is smaller and the vibrancy of the community changes when businesses typically close the night.

I’m hoping that the governor signs this bill into law.

Concept art of Mall converting into Housing in Seattle. https://urbanland.uli.org/economymarkets-trends/turning-malls-into-neighborhoods/

By Jim Myers Praxis Analytics

As observed in parts one and two of this series, our business world changing, at times much faster than we want to admit. In the past, it was possible to close off your business systems from the rest of the world. The internet has put an end to that reality; the days of a business working within a closed system are long gone. We now have a plethora of innovative systems, development methods and system vendors to choose from for your enterprise system needs. The question for business leaders is this: When the time comes for you to transition your business systems will you be comfortable with your decisions? (1)

One of most common oversights is that even though a business may recognize the need to upgrade their systems, their approach isn’t forward looking. We buy equipment and plan staffing levels based upon estimated business growth and customer demand. We ought to use the same approach when it comes to our systems and ensure our assumptions about the future are appropriate. The evolution of enterprise systems (2) has

A new enterprise system for your business: Dos and Don’ts - Part 3

been driven by the recognition that improved data-driven decision making is based on the capture of quality data to support improved information access and knowledge development. Information, like other company assets, has immense value when properly deployed, safeguarded and maintained.

Last month we looked at designing your system so it supports the new systems strategy. This month we focus on what your team needs in the future to be successful.

People

“At any point in time your people are perfectly developed, and your systems are perfectly designed, for the performance you are getting.”

Caution: Emphasize what you r team will need to do their work in the future and avoid focusing on how your team does their work today. Your system selection/ development approach should reflect the needs (and therefore the business strategy) of the future, and the portfolio of skills your people* have currently and

will need in the future. Differentiating current skill sets from those skill sets required for the future helps you make important training and development choices required to integrate your new systems (3). If your team is used to working in a certain manner dictated by past system decisions, now is the time to start changing those old habits and introduce the team to the future. Remember that new accounting system purchased from vendor “A”? (See Part 2) If your team is not properly prepared they will quickly start modifying and/or requesting changes to adapt the new system to the old way of doing things – why would they do any

differently? There is an old systems maxim that observes replacing a hammer and nails with a welded wrench and sharpened bolts will not get you and your business where it needs to be –food for thought. New tools require new approaches. Without a clear vision of how work will supports your business in the future, people will revert to what they know – the past.

*People in this instance are the most important resource a business has; they are your

team members that make sure on daily basis that your customers are happy, your assets are maintained and that your workflows and processes are productive and improved.

Example

After implementing a new system a company asked me to assess a recently installed ERP module that seemed to be failing. A root cause analysis quickly revealed that the opportunity to update business approaches available as a result of new system functionality had been missed. The responsible team had not been provided with, or developed, a vision of their future state to guide setting up the module. Instead of viewing customers based upon their needs and the types of products and services they purchased, the team had directly transferred old customer information (and the related after-market support information) from the old systems into the new one. The imported information reflected outmoded customer service methods dictated by the old system. The situation was made worse by the previous systems lack of access controls. As a result, there were many instances of duplicate customer information that varied only in format and not substance –

these were the accumulation of years of entry errors. The resulting erroneous data were carried over and directly impacted service quality as well as other parts of the business to include purchasing, inventory control, and sales quotation.

Solution

By interviewing executives (to gather their future intentions), subject matter experts (to understand what an improved future state look like), and system users (to define what will be needed to do their work); the fix was a matter of outlining and executing a plan to reimplement the system module upon future business priorities. Within the new ERP system it was easy to configure data to allow improved information access and to get daily reports on customer needs. The new ERP service module contained data fields that had been left blank during implementation – fields which were intended to collect data about data (“metadata”) which is used to support business intelligence reporting. Leveraging the new system’s reporting capabilities to find the most frequently used information we developed a plan that prioritized and corrected frequently used information first. The old system data

carried over to the new system contained inconsistent formats that severely limited the modules flexibility. To address this, upstream access to information entry and updates were limited to trained team members preventing the ongoing proliferation of erroneous entries. The team learned at each step in the module reimplementation how the new system was able to deliver what they had been identified as priorities for the future. As a result, the new module configuration eliminated about fifty percent of the time required by users to do their work.

Countermeasure – Develop your People

Provide your team with a clear vision of what lies ahead. Given access to leadership’s intentions (business strategy), system design (architecture), and how the system will set up users for success (requirements), your team members are more than capable of providing insights and advice on what they need from the system in the future. By taking part in creating the new system your team becomes integrated with the effort, and as a result their “buy-in” is increased because they will have to live with the result. As well,

identifying training and development needs and providing those opportunities before they are required will go a long way to proving to the team that the business leadership is behind the effort to improve future business performance by providing users with the tools they need.

See “Does Your Business Need an Enterprise Systems Strategy?”, in the January 2020 issue of the Southern Oregon Business Journal, https:// southernoregonbusiness.com/ does-your-business-need-anenterprise-systems-strategy/ Enterprise System: Application of complex software that encompasses and integrates business functions. Typically an Enterprise Resource Planning (ERP) System includes modules designed to address unique business functionality (i.e., reporting, sales management, accounting, inventory, production, human resources, materials planning, purchasing, customer service, etc.). Most systems comprise standard modules (“core functionality”) and optional modules to allow flexibility in addressing enterprise specific requirements. Modern systems allow for system configuration (not software coding) at the record, module

and system level through the use of user defined data fields and field behavior, data tables and table relationships, user and group level security and access rules, interface management, and audit tracking capabilities.

See “Strategy Map: Path to Prosperity”, in the February 2019 issue of the Southern Oregon Business Journal, (https:// southernoregonbusiness.com/ strategy-map-path-toprosperity/)

© 2023 Praxis Analytics, All Rights Reserved

Jim Myers is the principal of Praxis Analytics, Incorporated and a trusted advisor to business leaders in their quest to transform intentions into results. With experience spanning over two decades, Jim worked in manufacturing, supply chain, customer service and maintenance management roles within markets ranging from capital equipment to aerospace and defense. As Associate Dean of the Atkinson Graduate School of Management at Willamette University Jim led projects that doubled capacity, automated planning/scheduling systems and integrated best practices into school operations. He has taught graduate courses in Operations and Information Technology, Strategy Alignment, and Project Management. A former Marine, Jim credits the USMC with teaching him the value of leadership, quality people, good systems, and mission accomplishment. Jim can be reached at praxis@wvi.com.

Don’t miss an issue. All issues are online and free at https:// southernoregonbusiness.com

Photo by Ryoji Iwata on Unsplash

541-488-1702

Sponsors

By Marshall Doak, SOU SBDC Director

The Top Line in Business Performance

If I was pressed to name the ONE item most difficult to manage in small businesses today, I believe I would settle on the people aspects of having a business. Without people involved, so many reasons for having a business vanish, such as having a market to sell to or having staff available to produce the services of goods you trade in. Without people involved, why bother having a business in the first place?

This is not to make light of so many other issues that arise, some of which can be traced back to people (such as the regulatory environment for example). The question arises as to how to form a cohesive team with so many people who are quite often following disparate agendas. This fundamental task awaits every organization, whether it be governmental, private business or non-profit.

Standard business planning templates have an initial section for the entity to use for developing an organizational mission, to outline a vision for where the organization wants to go, and to build a set of values to guide organizational development. All too often, this part of planning is forgotten, even planning itself can be overlooked in haste to put out a document to achieve a short-term goal. This failure right out of the gate can be

attribute of organizational failure later on.

Entrepreneurs are especially susceptible to overlook planning, as the trajectory of a business is so dependent on the strengths and stamina of the principal. The thought that through personal effort and an individual’s understanding of their business is adequate for it to operate and for employees and customers to ‘rally around’ the business to sustain it. Nothing could be farther from the truth.

Why are you in business or why does your organization exist? Making the assumption everyone knows and ‘gets it’ is naïve at best. Much better to spell out why you are doing what you are doing. Make it clear and understandable. This should be in front of all eyes all the time, and is your mission.

Where are you taking your business? Have conditions so changed over the past couple years that you should re-think the opportunities and market potentials for your business? Are you and your partners or Board aiming in the same direction due to the upheavals in commerce and the competitive landscape? Have supply-chain issues consumed you lately when a year ago they were an afterthought? Establishing a clear vision that everyone can understand and have a sense of security that the current challenges will be met and overcome? Work with your team to build a vision to carry the company forward for the next decade.

What do you believe in? What does your customer base expect from you? Do you care what they want or think? After the reason for the organization’s existence is formed, and a vision for the future is built, spending some time to build a set of values to guide behaviors, customers, and for basic decision-making is the final step in setting a company or organization for success. This is the manner that great company culture is built.

In many cases this work is the hardest and most complicated part of business planning and operations. Failure of entrepreneurs to allocate adequate time and resources to properly setting-up their operations to be a smoothly functioning enterprise has caused untold numbers of organizations to flounder around looking for cohesion while opportunities and business passes the organization by. Most organizations that flounder around fail, with failure being costly and life-changing events. Allocate adequate time to structure your organization so that when you get to business planning, that task becomes much faster and easier.

When looking for advisers for your business, look for seasoned business owners who have experience in all aspects of business formation dynamics and can help steer you through the important aspects of business initiation and continuation you face. Don’t settle for someone who hands you a template they ripped off of the internet a few minutes before you met and declares

themselves to be an expert in business formation and planning. It takes a person who has been tested through leading organizations on a real-time basis who understands these dynamics to help you reach higher levels of performance. If you are going to put effort into structuring or restructuring your business to remain current, take the time to find the assistance that will do you some good.

By Marshall Doak – SBDC

Marshall Doak is the Director of the Southern Oregon University Small Business Development Center and a huge supporter of innovation and the community that forms around innovation in the economy. In private practice, he works with businesses that plan to transition to new ownership within the next five years, assisting them to build value that can be converted to retirement income when the business sells. He can be reached through: mdoak06@gmail.com or 541-646-4126.

Photo by Jason Goodman on Unsplash

by Greg Henderson

In the first place, why was the town built here and not somewhere else? There must have been a reason to start it here. Isn’t there also a reason to keep it here?

The original reason, or reasons, for the location of a community changes as the needs of its citizens change. Conveniences to the region outlying the town probably have to do with the time it takes to travel from farms to church on Sunday morning. Towns dot the landscape centered on the radius of roads to the stores, churches and government offices located there.

The accidental location of key businesses in the early stages of a towns being can be the downfall of the community decades later. What will always attract activity in the center of a community? …fifty years from now? Every community needs a core to thrive. That doesn’t mean it necessarily must be in the geographic middle of the town. A centered core may refer to the financial source of revenue the town needs to remain viable, be it a single large employer or a number of small enterprises in easy transportation proximity to one another. It could also be river crossings or roadway intersections that invite the development.

Communication and transportation systems have

Radical Change – Saving Small

Towns and Businesses from Extinction

caused radical changes in the needs of community populations over the last century. Freeways rocketing past once thriving small towns has taken business and jobs from those communities but often not the town’s residents who prefer to stay. Critical to the move, however, is that revenue in the form of taxes and other fees from businesses that have moved away leave the community searching for revenue streams to continue their familiar existence or find ways to reduce the costs of governing and financing the services provided. Street maintenance, safety in the form of policing and fire services, and waste and water treatment operations are a few of the larger expense items that appear on the community’s budget. How can they remain sustainable?

Tourism is a constant topic across the country as a possible source of revenue. With 3,000 communities in the nation the competition for tourism dollars is fierce. And tourists can be a fickle demographic. Fashion and food popularity can draw them in or chase them away depending on marketing strategies, trends and fads. Seasonality, differentiation, marketing and low pay to employees make chasing the tourism dollar a questionable risk/ reward gamble.

The administration of cities and towns has become extremely

complex with the addition of computerized operating systems, robotics and the rapidly moving AI, or artificial intelligence, over the last decade. The evolution of these inventions has turned manual labor and many bluecollar jobs that once built the middle class of America into an outdated method of production because of its lower level of production and efficiency. There are business reasons for moving important work from manual to machine. The hard-to-hear term “non-essential worker” is a disruptor in living standards and job promotion, whether public employee or private. This complicates the decision making of our leadership teams including city administration and boards of directors.

While leaders at every level become better schooled at dealing with technology, understanding the value and costs of both essential and nonessential staff, and how to build and improve communities and businesses there is a critical need to learn how to keep yesterday’s ailing patient alive. Moving at the pace of evolution in leadership is unacceptable. Education is an intense, daily activity.

A Fine Line By Greg

Henderson Greg Henderson is the retired founder of the Southern Oregon Business Journal.

Oregon to Receive $689 Million for Broadband Infrastructure

Funding designed to improve access to high-speed internet for rural, underserved communities

Salem, OR—Today, Governor Tina Kotek announced that the National Telecommunications and Information Administration (NTIA) will be allocating $688.9 million to Oregon to help improve access to affordable, high-speed, reliable internet in unserved and underserved communities across Oregon. The funding allocation will be used to develop and deploy the

Broadband Equity, Access, and Deployment (BEAD) program from President Biden’s bipartisan infrastructure law. The Biden Administration’s announcement can be found here.

“Access to quality internet in 2023 is critical to a community’s local economy,” Governor Kotek said. “This substantial investment in Oregon’s broadband infrastructure will help to remedy

the digital divide in rural, unserved, and underserved communities across the state, ensuring that Oregonians are able to access telehealth, business opportunities, education, and so much more.

“I want to thank the Biden Administration, the National Telecommunications and Information Administration, and Congress for this investment. I

also want to give a special thanks to Secretary Gina Raimondo, Senator Ron Wyden, and Oregon’s Broadband Office for their efforts to ensure that Oregon gets their fair share of the resources through advocating for maps that accurately depict our state’s broadband needs.”

“High-speed Internet is essential to our daily lives, but too many communities across our state lack access to reliable, affordable, high speed broadband speeds. We’re changing that,” said Sophorn Cheang, Director, Business Oregon. “I’m grateful to the Biden-Harris Administration for this historic nearly $690 million investment for Oregon, that will enable our State to increase access to quality, affordable, high speed internet for our unserved and underserved communities.”

The Broadband Office is currently in the planning and development phase of their BEAD and Digital Equity (DE) programming.

Business Oregon’s Broadband Office is currently seeking community input as the agency readies a five-year action plan and initial proposal to map out how to use this funding. Input via the surveys and meetings will be crucial to inform the plan and gather information about specific barriers, needs, and opportunities related to highspeed internet access. For more information on how to participate, click here.

By Oregon Press Release – June 26, 2023 – https://

www.oregon.gov/newsroom/ Pages/NewsDetail.aspx?

newsid=166749

From the Oregon Broadband Office

Governor Tina Kotek announced that the National Telecommunications and Information Administration (NTIA) will be allocating nearly $689 million to Oregon to help improve access to affordable, high-speed, reliable internet in unserved and underserved communities across Oregon.

The funding allocation will essentially be the program budget for developing and deploying the federal Broadband Equity, Access, and Deployment (BEAD) program in Oregon and ultimately implement the state’s plan. Below is a list of broadband funding and availability status.

The Business Oregon Broadband Office has applied for the funds below and is actively in the program planning and development phase.

Help Oregon Plan for Broadband Access and Digital Equity

Frequently Asked Questions: When will funding be available? We are currently in the program planning and development phase. The federal deadline for the state’s 5-Year Action Plan is August 28, 2023. Then the

Initial Proposal for spending is due December 2023, and late 2024 for the Final Proposal. After the Final Proposal is approved by the NTIA, the program is expected to be implemented over the course of four years and is tentative to be completed in 2028.

Who is eligible for funding?

This will be developed as part of the State Action Plan under development now for the BEAD funding. Here is a one-pager from the U.S. Department of Commerce.

What can the funding be used for?

BEAD funds can have many uses, but there is a great need in the state, and broadband deployment will be a priority for funding. Examples of eligible funding uses include:

Planning for the deployment of high-speed Internet, including conducting research, collecting data, outreach, and training

Deploying or upgrading Internet in unserved or underserved areas or improving service to community anchor organizations

Installing Internet and Wi-Fi in multi-unit residential buildings

Adoption and digital equity programs

Workforce development programs and vocational training programs

Broadband : Future Proofing Oregon

Join us in Ashland, Oregon on October 26th and 27th for the 26th annual Oregon Connections Telecommunications Conference.

This year's conference theme is Broadband : Future Proofing Oregon and will feature keynotes by Senator Ron Wyden and NTIA’s Adam Geisler.

Senator Wyden will discuss his vision for a future where all Oregonians have access to high speed, a ordable Broadband and the tools to use it e ectively.

Adam Geisler, Division Chief Tribal Connectivity and Nation to Nation Coordination at US Department of

Commerce NTIA will present Money Talks and Implementation Rocks! The $3 billion journey of NTIA's Tribal Broadband Connectivity Program: lessons learned and opportunities discovered.

Other sessions include : Working Partnership Models (Non-Profit, Municipality, EDD, Tribal) ; Convergence-Colliding Technologies ; Broadband 101 ; What Happened To Telephone? ; Telehealth ; Overbuilding? Or Future Proofing?

Sessions and Speakers Subject to Change

Sponsors (as of 7/7/2023)

EnerTribe, Inc, WBE Technologies LLC, Power & Tel, Quantum Fiber, Walker, Millennium, Northwest Technology Sales, Rabbit Communications LLC, Zyxel Communications, Inc.

Please visit our website at OregonConnections.info to register to attend in person or online or sign up as a sponsor or exhibitor.

5350 HWY 66, Ashland, OR. 97520

www.southernoregonbusiness.com

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CONSERVING ENERGY AND SAVING MONEY ARE IMPORTANT TO US, BUT WORKING WITH PEOPLE WE TRUST IS KEY.