Kitsap Peninsula Business Journal - May 2016 by Kitsap Sun Digital

Kitsap Peninsula

Business Journal An edition of the Kitsap Sun

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May 2016 | Vol. 29, No. 5

Training skilled workers West Sound Tech students learn trades needed in the workforce Page 4 Mechanical engineering grads earn four-year degree from WSU/OC | 6 Purpose Boutiqueâ&#x20AC;&#x2122;s third store will open in Silverdale | 14

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| May 2016 |

Where school days are all about skills ■ Students come to West Sound Tech for practical training in a broad range of career pathways By Terri Gleich KPBJ contributor

At West Sound Tech, a typical school day might involve welding a lumber rack onto a pickup, designing a 3D computer game or building a water puriﬁer out of common household items. The Bremerton skills center is an educational cooperative that serves high school students in nine school districts, including all of the Kitsap Peninsula. It provides free job training as an extension of students’ high school coursework, opening the door to a wide range of careers. “This is a school of choice,” said Nora Zollweg, West Sound Tech’s marketing and student outreach coordinator. “Kids are here because they want to be. They love these instructors because they’re teaching things they ﬁnd valuable.” “This school attracts the looking-ahead, plan-ahead crowd,” said Ian Roth, a senior from South Kitsap in the public safety occupations program, who wants to be a K9 police officer. About 390 students are enrolled at West Sound Tech this spring. Most are juniors and seniors who divide their days between high school and the skills center. They come from as far away as Port Townsend and Gig Harbor and have their choice of 11 career pathways, including welding, cosmetology and professional medical careers. Traditional blue-collar jobs, such as automotive technology and collision repair, are well represented, but there are also hightech offerings, including biomedical research, advanced 3D video game design, and engineering design, prototype and production. Director Shani Watkins said there’s a misconception that the school is just for kids who are interested in going into a trade after high school graduation. In fact, she said, each program teaches students about the full range of options, including jobs directly out of high school, apprenticeships, further technical training and college degrees.

LARRY STEAGALL PHOTOS

West Sound Tech construction careers instructor Eric Erickson helps Caleb Thomas, 17, put up rafters on a construction project.

West Sound Tech professional medical careers student Claudia Lange, 16, left, performs a blood pressure test on student Madison Hagerman, 17.

(Advanced Placement) students. We have the whole spectrum because we’re based on interest Hannah Whitbeck, 17, does a liquid test in her bio-medical and not always capabilresearch and global health class at West Sound Tech ity. I think that’s why stuskills center. dents ﬁnd success here.” “It really does prepare them David Young, who teaches profor both. Success begins here but fessional medical careers, said they can choose any path they some students in his program want to take,” Watkins said. are heading into internships at “We take all kids. We have spe- nursing homes and are on track to cial ed students and we have AP quickly earn credentials as Cer-

tiﬁed Nursing Assistants and go straight from school to jobs. Others see the program as the ﬁrst step toward becoming a nurse or going to medical school. Under agreements with several area colleges, including Olympic College, students can earn 12 college credits through the West Sound Tech program toward nursing prerequisites. In addition to gaining practical knowledge related to their career

pathways, Young said students at West Sound Tech learn general skills important to employers, such as communication, leadership and punctuality. And they are required to develop five-year plans to help them meet their goals, including figuring out how to pay for additional training or college. “We tell them, ‘Don’t throw your dream out. Figure out how you’re going to get there,’” said Young. Rachel Rood, who is studying biomedical research and global health, wants to be a veterinarian and has charted a course that includes joining the Army Reserve to pay for her college education. The North Mason senior chose to attend West Sound Tech because of her fascination with medicine. “I wanted to work more handson and dive into other sorts of jobs in the medical field,” she said. “It’s helped me discover different jobs and careers I can do.” Biomedical teacher John Thornton said his one-yearold program gives students the freedom to follow their interests while studying the scientific method. One student has developed a water purifier from common household objects and is now completing a cost analysis. Another has been invited to a Seattle water symposium because of research on clean water issues related to the lead crisis in Flint, Mich. Rood is researching animal feed safety because of her interest in veterinary science. West Sound Tech works closely with employers, including Puget Sound Naval Shipyard, SAFE Boats International and Martha & Mary Health and Rehab Center. When the shipyard had an entrylevel opening, it sent a human resources representative to the school to guide students through resumé writing and the online application process. Martha & Mary has done mock interviews with students in the professional medical careers program. Jim Sund, a West Sound Tech See SKILLS, 5

| May 2016 |

Skills from 4

advisory committee member and owner of North Kitsap Auto Rebuild, has hired graduates from the collision repair program, including his painter and lead estimator. As a member of the tech school’s foundation scholarship committee, he’s heard from many students who said they hadn’t done well in school until they attended the skills center and found something they wanted to do. “I’m guessing a fair number of those would have dropped out if that center wasn’t there,” he said. West Sound Tech alumni Bryan Watland credits the skills center with helping him get a shipyard appren-

THERE’S A STRONG EMPHASIS not only on skills but on the work ethic that employers are looking for,.”

accomplish work and meeting the standards that are enforced there, that is not always emphasized in pure academic programs.” The school also teaches students to give back to the community. Cosmetology students provide free back-to-school haircuts. Students are building a

ﬂoat for the May Armed Forces Day Parade that is a quarter-scale replica of the Kitsap 9/11 Memorial. And plans call for the construction program to start building tiny houses for the homeless next year. In addition, students offer services to the public for a fee, including haircuts,

manicures, carpentry, and car maintenance and repair. There’s also a studentrun deli counter that’s open for lunch on weekdays. During a recent afternoon in the school’s welding shop, instructor Bela Kovacs showed a visitor a tractor replacement part that his students fabricated

for a client and pointed to a group of trainees welding a lumber rack onto a customer’s truck. “They get to see it really matters and they get the attaboys that go with it,” he said. “For high school kids to be doing this kind of work is pretty amazing.”

— West Sound Tech alumni Bryan Watland.

ticeship that led to a 37-year career as a boilermaker. “There’s a strong emphasis not only on skills but on the work ethic that employers are looking for,” he said. “The discipline to

Drivers wanted

■ Kitsap Transit isn’t the only

agency experiencing a shortage

By Ed Friedrich efriedrich@kitsapsun.com 360-475-3792

Kitsap Transit isn’t the only outﬁt hurting for bus drivers. Agencies nationwide are feeling the pinch. School districts are facing an even tougher time. Kitsap Transit warned riders in early April that routes could be cut with little notice because of a driver shortage. On a normal day, about 10 drivers are off for vacation, sickness or other reasons. Their shifts can easily be covered. Lately, there have been three times that many. An unusually high number were out last month with long-term illnesses, some call in sick and others had preplanned vacations. “Now you suddenly start having 30, and we don’t have enough drivers to draw from,” said executive director John Clauson. “We can’t hire 30 operators to sit around for these

anomalies.” He’d have a hard time hiring 30 drivers even if he wanted. In 2015, Kitsap Transit averaged 27 applicants per month. This year it’s down to 15. Fourteen people were invited to the latest training period. Seven showed up. A few of those dropped out before finishing. Competition for employees is fierce with the hot Seattle market and closer to home at Puget Sound Naval Shipyard. “We are actively doing things to try to get more folks coming in the door, but we’re faced with the same challenges others are in the growing economy,” Clauson said. Bus driver pay is decent, ranging from $19.81 to $26.55 an hour, with good benefits. But it’s not as good as it seems. Drivers choose work packages based on seniority. New hires get whatSee DRIVERS, 24

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| May 2016 |

IT’S PROBABLY ONE OF THE broadest of all fields in engineering. Jobs can encompass research, product development and design and manufacturing.”

Olympic College engineering instructor Goker Tuncol,center, works with students Annarose Schaad of Tacoma, left, and Bryant Veach of Silverdale on electrical circuits.

— Jeff Brown, mechanical engineering instructor

LARRY STEAGALL

Engineers trained in WSU’s program at OC are in demand ■ Regional hiring is strong for grads with

four-year degree in mechanical engineering By Rodika Tollefson KPBJ contributor

While there’s currently an adequate supply of mechanical engineers statewide, some counties are seeing higher demand than others — and the ﬁeld is projected to grow overall. According to the Washington State Employment Security Department, in Kitsap County the demand for this job is balanced. An estimated 545 mechanical engineers were employed locally in 2013 (almost 10 percent of the total number statewide) and 27 annual job openings are estimated through 2023. Part of the balance could perhaps be attributed to

a partnership between Olympic College and Washington State University. Since 2009, WSU has been offering a bachelor of science degree in mechanical engineering at OC’s Bremerton campus. Students apply to, and get their diploma from, WSU. To qualify for the program, they take the ﬁrst two years of prerequisites at a community college (like OC). They attend the Bremerton campus for the last two years, taking a combination of in-person classes with WSU faculty and online courses. “It’s a rigorous program and has the same degree of rigor as it does at the (WSU) Pullman campus,”

says Mark Harrison, dean of OC’s Math, Engineering, Science and Health Division. Originally, the state of Washington capped annual enrollment at 15 juniors and 15 seniors, but that number was later raised to 30 each. Enrollment has been growing every year, while the attrition rate is low, Harrison says. Jeff Brown, one of the full-time faculty members for the program, says that statewide there’s a high demand for the degree but not enough slots — the University of Washington, for example, turns down many applicants. “This (program) gives students on the west side

of the state an option,” says Brown, who’s considered an OC employee and WSU adjunct. “The demand in

industry is so high that (degree programs) still can’t keep up with it.” The average salary for mechanical engineers in Kitsap County is around $89,000, compared with an average annual wage of $45,571 in Kitsap and $55,003 statewide (as of 2014). Brown estimates the entry-level salary to average more than $60,000. “They are among the highest-paid jobs someone can get with a bachelor’s degree,” Harrison says. He says the OC proximity to the Puget Sound Na-

val Shipyard was one of the main reasons the degree program was brought to Bremerton. “The shipyard is a major customer in terms of our graduates,” he says, adding, “The employment rate within four to six months of graduation is incredibly high, and many seniors are getting interviews six to seven months ahead of graduation.” The Employment Security Department lists 19 private employers in Kitsap See ENGINEERING, 12

| May 2016 |

Laid-off mill workers shift gears through retraining options at OC ■ Program at

Shelton campus helps with career transitions after Simpson closure By Rodika Tollefson KPBJ contributor

For many 20-year-olds, earning $20 an hour is likely a dream job. When Curtis Wuestner started working at the Simpson lumber mill in Shelton, he could have easily become a “lifer,” as many other mill workers were. After all, he was second-generation — his father, Tony, was also an employee at Simpson Lumber Co., one of Shelton’s major employers and a place that workers called “family.” But Wuestner’s job security didn’t last long. After about a year of running trimmers and driving a forklift, he was laid off last July — along with most of the 280 employees at the two Simpson mills. Simpson sold the operations to Sierra Paciﬁc Industries, whose plans called for building a new facility rather than operating the old ones. “The company talked for three to four months about wanting to sell, but we didn’t think we’d lose our jobs,” says Wuestner, a 22-year-old Shelton resident. Last fall, Wuestner, along with his father, became part of a small group of former mill employees whoaregettingtrainedfornewcareers at Olympic College’s Shelton campus, thanks to the state-funded worker retraining program. The program provides tuition and other beneﬁts for those who receive or qualify for unemployment, as well as for workers under the Trade Act. Students continue to receive unemployment while enrolled full-time, along with money for tuition, fees, books, transportation, childcare and other expenses. “It’s a godsend to get school

ARLA SHEPARD BULL

Curtis Wuestner, right, and his father, Tony, both lost their jobs when the Simpson Lumber Co. closed its mills in Mason County. They are taking courses in a worker retraining program at the Olympic College campus in Shelton.

and books paid for. I couldn’t do it otherwise,” Wuestner says. The Shelton campus enrolled 19 former Simpson employees last fall, with several more joining during the winter and spring quarters. They’re studying anything from nursing and welding to computer information systems and pre-physical therapy, with their ages ranging from early 20s to mid-60s. “Some of them needed time to process what they wanted to do with their career, so we could quite possibly see more former Simpson employees next fall, albeit in smaller numbers,” says Rose Ferri, the transitions coordinator for the worker retraining program at the Shelton campus. The retraining program has a total of about 200 students, and Ferri says there’s no cap on enrollment. “Each school receives a certain amount of money,” she says. “We are here to help and support the

students for as long as the money is available.”

Assembling community support

Teresa McDermott, Shelton campus director, says a group of about 16 partners, including OC and the state Employment Security Department, assembled a transition council to help prepare the Simpson workers for their transition and to coordinate services. The task force also included elected officials and representatives from several unions, WorkSource, the Paciﬁc Mountain Workforce Development and Simpson Lumber. “It was a community effort, with those agencies connecting with the governor and senators to come together and rally around the Simpson employees,” McDermott says. Some of their activities included a community resource fair, rapid response sessions at Simp-

son and two job fairs. Olympic also offered one- to three-credit courses such as basic computer literacy and time management for those new to college. “The intent of the council is to minimize the impact of this layoff on the individuals, so they don’t have to go to multiple sites and locations to try to ﬁgure out the resources available to them,” McDermott says.

Pivoting to a new life

Like many others from the Simpson cohort, Lindsey Parkinson never went to college. The 31-year-old Allyn resident says she’s been on her own from age 15, so “college was never an option.” Parkinson held various jobs until a temp opening as a buyer brought her to Simpson’s Tacoma paper mill. She was offered a permanent job shortly after, and when the mill sold, she was transferred to Shelton in 2013.

“I loved my job; it was the best job I ever had,” she says. “I would have been a lifer.” Parkinson, who was planning to go on maternity leave last May for a few months, was instead laid off in February. Her prospects of getting the same type of work, without an education, were slim. “I probably could have gotten a job but it would not have been comparable money- or skillwise,” she says. In January, Parkinson enrolled in an associate’s degree in business management at OC Shelton. She says that first quarter was highly emotional, since she didn’t get to be part of the final farewell activities at work. “Seeing my former co-workers was awesome,” she says. “We are like a family.” To help maintain that bond, Parkinson is organizing a barbecue in July for all former employees at Mason Lake — continuing a long-standing company tradition. She paid for the location out of pocket, received donations for meat, and made sure to secure the same cook. “It’s for us to reconnect and check on each other,” she says. She also wants to start a bowling team and is spearheading the launch of a support group for those who landed at Olympic College, to help them adjust to student life as well as connect with resources. “We support each other and all want to make sure we end up in a good place,” she says. Even before the support group is official, many of the former coworkers are sticking together. Wuestner, who only has classes three days a week, is on campus daily — he tries to get together with others to do homework and such. Wuestner previously took classes toward an accounting degree at Centralia College while playing baseball. He plans to finish out an associate’s degree at OC, then transfer to a four-year program so he can get a job in forensic auditing for law enforcement. The adjustment from earning a good wage to being a student has been difficult, he says. “Like for any of the Simpson guys, it’s a struggle at times because we’re unsure about going See RETRAINING, 12

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| May 2016 |

Kitsap Sun gets a new owner â&#x2013; Paper becomes part of Gannettâ&#x20AC;&#x2122;s USA Today network By Kitsap Sun staff

Federal regulators approved the $280 million sale of the Kitsap Sunâ&#x20AC;&#x2122;s parent company, Journal Media Group Inc., to Gannett Co. Inc. The move in April clears the way for Gannett to acquire Journalâ&#x20AC;&#x2122;s 14 newspapers. Gannett owns USA Today and 92 other daily publications. The acquisition is part of the transformation of the newspaper industry, which is in transition as consumers and advertisers migrate to the Internet. Gannett, based in

McLean, Va., describes its USA Today Network as the largest local-tonational news network in the country. Journal Media Group stockholders will receive $12 per share in cash in the deal, which was approved by shareholders on March 1. Federal regulators needed to sign off before the sale could be completed due to antitrust rules. JMG, with about 3,400 employees, was created in April 2015 after The E.W. Scripps Company and Journal Communications Inc. merged

their local TV and radio operations and spun off their newspapers into an independent, publicly traded company based in Milwaukee. In June, Gannett likewise divided its newspaper and broadcast assets into separate companies. Gannett has said it intends to acquire daily newspapers in the consolidating industry. In addition to the Kitsap Sun, Journal Media Group includes the Milwaukee Journal Sentinel and Journal Community Publishing Group in Wisconsin; The (Memphis)

www.KPBJ.com Look whoâ&#x20AC;&#x2122;s joined the team! Cindy Rose (LPO/ Settlement Agent) brings with her 25+ years of experience in the escrow industry. Her knowledge and expertise in all facets of a transaction have created many happy customers and loyal clients. She strives for excellence in everything she does and we couldnâ&#x20AC;&#x2122;t be happier that she is here. Please join us in welcoming Cindy to the Pacific NW Title Bainbridge Island family!

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son) Independent Mail in South Carolina; the Abilene Reporter-News, Corpus Christi CallerTimes, San Angelo Standard-Times and Wichita Falls Times Record News in Texas.

FOR SALE INDUSTRIAL/VACANT LAND $530,000 19.34 ac zoned (IND) industrial property within the Silverdale UGA. Easy access to State Hwy 3 off of Newberry Hill Road. CBA# 541947 MARCUS HOFFMAN 360-271-0023 COMMERCIAL INDUSTRIAL $155,000 Great location would be a great place for another church or nonprofit community group. Land is zoned UL, maybe able to be rezoned for more uses. MLS# 795626 DENNIS BALDUF 360-649-5053 COMMERCIAL PROPERTY $99,900 Great corner lot, .26 of an acre with 136â&#x20AC;&#x2122; of Chico Way road frontage. Level and cleared ready for your Rural Commercial building. Natural gas, electricity, water and sewer in the street. Seller has purchased a sewer hook up and is willing to negotiate for

an additional cost. Partial view of Dyes Inlet. MLS# 867417 DAVE & CINDY MCKAY 360-620-5451 OR 620-6490 COMMERCIAL PROPERTY $140,000 Opportunity to own three commercial lots in Bremerton, close to PSNS, bus lines, Seattle ferry and Highway 3! All three parcels assess for well over the asking price! One parcel has a small home that is currently used as a rental. So many possibilities here! MLS# 867979 DAVE & CINDY MCKAY 360-620-5451 OR 620-6490 DEVELOPMENT POTENTIAL $240,000 Large .67 acre site with a 1500 SF one-level residence-Preliminary drawing with engineering estimates to develop the sit into an additional 4 lots. Sewer on site. MLS# 860178 MERV KILLORAN 360-620-2829

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| May 2016 |

Trustee’s sale set for Chase building in Bremerton By Tad Sooter tad.sooter@kitsapsun.com 360-475-3783

A trustee’s sale has been scheduled for Bremerton’s landmark Chase Bank building, but a representative of the property’s ownership group said it expects to stave off foreclosure. Notice of the July 29 trustee’s sale was issued this month. The sale would include the sevenstory Chase building at 500 Paciﬁc Ave., two downtown parking lots and a parking garage at the Norm Dicks Government Center, all owned by Bremerton Capital Group LLC., a Los Angeles-based investment corporation. According to the notice, Bremerton Capital Group was behind more than $453,000 in payments on a loan issued in 2006. The group owes $4.734 million on the loan, currently held by U.S. Bank National Association. The propertyownersplantopayoffthe loan or reﬁnance, said Peter Cohen with Cardinal Equities LLC., which represents the Bremerton Capital Group properties. “We’re in discussions with the lender and expect to reach a resolution with them,” Cohen said. The 77,000-square-foot Chase

AirMasters from 10

Peninsula, and while that never panned out, the Timmermans said their year working for the Florida entrepreneur (an old friend of Timmerman’s father) was a worthwhile experience. “We learned that if you want to be successful to the point that we wanted to be, … we needed to be in business for ourselves,” Mark said. That’s why he didn’t go back to Air Masters when they moved back from Florida in 2000. Instead, the couple started their own HVAC business, Mark Air. That made things a bit awk-

MEEGAN M. REID / KITSAP SUN

A trustee’s sale in July will include the Chase Bank building in downtown Bremerton.

Bank building was built in 1964 and is instantly recognizable by its unusual rock facade. Bremerton Capital Group paid about $4 million for the corner property in 2005, when it was hometonow-defunctWashington Mutual Bank. The building was about half-occupied at the time of the sale, according to Kitsap Sun archives. A recent walk-through revealed two vacant ﬂoors and a number of other empty offices. Cohen declined to discuss the vacancy rate at the building. Other properties listed in the trustee’s sale include two parking lots between Pleasant Avenue and Highland Avenue, north of Sixth Street, and a parking garage level in the Norm Dicks Government Center on Sixth Street, owned as a condominium unit. ward when Timmerman ran into Krecker, who hadn’t known his former employee was back in town. They were business competitors for several years, even utilizing the services of the same business coach, which they didn’t discover until after merging their companies. What drew the boss and former employee together again was a mutual effort with other HVAC companies opposing proposed legislation for licensing sheet metal workers. Through the monthslong process, “we gained a relationship again,” Timmerman said. One day in 2008 they met for lunch and what Timmerman

Engineering from 6

in ship/boat building and electronic instrument manufacturing, plus another 220 architectural and engineering service companies that may offer these types of jobs. Brown says that besides the Bremerton shipyard, past graduates have been hired locally by the Keyport Naval Base, General Dynamics and Art Anderson Associates. Regionwide, Boeing is also a major employer of mechanical engineers. “It’s probably one of the broadest of all ﬁelds in engineering,” Brown says. “Jobs can encompass research, product development and design and manufacturing.” Brown estimates that about half of the students are Olympic College transfers, with the other half mainly coming from Tacoma Community College. But past graduates have also come from as far as the Seattle and Everett areas, and there have also been some international students. One advantage of the satellite program, Brown notes, is class size —30 in Bremerton, compared with 90 in some classes at UW and WSU. That means students are getting better access to their

Retraining from 7

back to work,” he says. “But it is what it is, so we’re powering through it.” thought would be another strategy discussion, but he was stunned when Krecker laid out a plan to combine their businesses. It took some time, but the merger with Air Masters became official at the start of 2010. By that point, Timmerman noted, he and his wife had taken the business they started a decade earlier “from an idea to a $1 million-ayear-grossing company.” Krecker achieved his goal of retiring at 65 last month, and now Timmerman has sole control of the operation in the building on Mile Hill Drive that was under construction when he had his ﬁrst job interview with Krecker nearly 20 years ago.

Olympic College engineering student Anthony Corso of Port Orchard checks on electrical circuits. LARRY STEAGALL

instructors. “The program has gotten a reputation as being a quality program,” he says. He notes that the demand for graduates will continue strong — considering that the shipyard needs to annually hire 100 engineers in general to keep up with Baby Boomer retirements. But even if there were higher demand for mechanical engineering students, the program currently can’t handle more than 30 new enrollees. “Enrollment is driven by the number of students who can go through the labs,” Brown says. “OC has a shortage of classrooms and 30 looks like the capacity that can be handled with current resources.”

But turning down students would not necessarily mean a bad thing — it’s a sign of any strong program, Harrison says. “It means the program has good name recognition and the quality of graduates is higher,” he says. Harrison notes that the partnership between Olympic College and Washington State University has worked out well. “One thing that’s really important about partnerships is that everyone gets what they want and expect,” he says. “We work really well together as institutions, and on an individual basis, to make sure the needs of everyone are being met.”

For Parkinson, who is now expecting her second child, doors have already been opening. She decided to start her own business after her graduation next summer, and has already lined up a few potential clients. Work-

ing for herself, she says, gives her the best of two worlds — she can enjoy time with her kids and still have a career. “This program is the only thing that makes that doable,” she says. “For me, this is the perfect option.”

HVAC from 10

“It’s definitely a trade you would be in if you like working with your hands and you like mechanical engineering, or if you’re interested in anything mechanical,” said Timmerman, who started in the HVAC business right out of high school as a union apprentice in Seattle. Olympic College’s workforce training programs are geared

more toward the shipyard, but there are community colleges in the Tacoma area and King County that offer HVAC training. But most of those potential workers are hired by larger companies in those more populous areas, where wages are higher than in Kitsap, Timmerman said. “The trades and the businesses are sucking the kids and the graduates out of (vo-tech programs) before they’ve even graduated, basically,” he said.

www.KPBJ.com

| May 2016 |

Paying out of pocket to go beyond basic ■ New store’s retail model offers more choices in home medical equipment By Tim Kelly

“It isn’t likely the whole business line is going that way (retail), but there is an opportunity for Mike to do that. I hope he does well.” Iott considered another business opportunity for the space he’s leasing in Towne Center, just south of Kitsap Mall. It was previously the site of Minuteman Press, and he explored the possibility of reopening the franchise printing shop. But the 51-year-old with a master’s degree in global human resources said that was more about “scratching my itch of being a business owner than going into the printing business.” He decided to stay with what he knew, and spent a couple months doing tenant improvements before opening iMotion Medical on

tim.kelly@kitsapsun.com 360-792-3359

Michael Iott’s business model for opening a home medical equipment store pretty much ties in to the old adage “you get what you pay for.” With Medicare and other government and private insurers restricting what they cover and reducing reimbursements, he decided the time was right to sell walkers, wheelchairs, canes, bathroom safety aids and more on a retail basis. “I’ve always thought that this concept of the (home medical) industry was the wave of the future, which is retail,”saidIott,whoopened iMotion Medical in Silverdale in March. “The industry, the way it was, has been slowlytakinganosedivedue to reimbursements.” So for customers willing to pay out of their own pocket, iMotion offers options such as a deluxe walker styled in the Seattle Seahawks “12” theme, or a knee scooter with knobby tires to navigate off-road terrain such as a gravel driveway. “I’m looking to provide equipment that gives everybody a choice – good, better, best,” Iott said. Those choices aren’t available for what Medicare covers now, he noted. He had a good vantage point to track the industry trend. Iott worked for 31 years at Farrell’s Home Health, the last 15 years as general manager of the Silverdale-based company. When owner Carl Cramer, who hired Iott as a 19-year-old college student to be a delivery driver for Farrell’s, decided to sell his business, Iott left to open his retail store. “Back in the day when I was managing that company, your government payers

March1asaone-manoperation. Once he gets the business established, he plans to hire a store employee so he can do more marketing, which will include visits to medical offices and presentations at senior living centers in the area. A lot of retail customers for home medical equipment might not be the users of the products; it’s often an adult buying what an aging parent needs.

“I carry the higher-end walkers that people are going to want to have because they’re more comfortable, they going to last longer,” Iott said. “An adult child’s goingtosay‘Iwantmymom to have the best thing that’s most comfortable for her.’” Baby Boomers in particular are likely to be willing to pay retail prices for quality products, he added, See MEDICAL, 16

TIM KELLY

Michael Iott demonstrates a knee scooter at iMotion Medical, the store he opened in Silverdale recently. Next to him on the table is a custom four-wheel walker in Seattle Seahawks colors.

paid fairly well,” he said. “It was a fairly lucrative industry — you got paid for your services; it was very proﬁtable. “And then the government just started whacking away at reimbursements and reducing them to the point where companies started to struggle.” The impact deepened around 2010, Iott said, when Medicaid also started ratcheting down reimbursements, and “it was starting to have a pretty signiﬁcant impact on this industry.” Independent companies were disappearing, or being acquired by larger national-based companies. When private insurers started adjusting their coverages for home medical equipment in line with cuts made by Medicare, Medic-

aid and the VA, suppliers had to adjust to the squeeze. Companies were left looking for cheaper products that weren’t as durable to maintain a small margin on sales, Iott said, and they cut back signiﬁcantly on service for things like home oxygen supplies. “In my mind it started looking like … this is going to be a retail business in no time,” he said. He had discussed such a transition with Cramer before Farrell’s was sold last year to Performance Home Medical, a statewide company based in Kent that specializes in respiratory services and doesn’t have a retail operation. “It was an opportunity,” said Cramer, whose company had more than 20 employees a few years ago.

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| May 2016 |

BUSINESS MENTORING | KEN SETHNEY

How should I measure results of my social media marketing?

etrics are a powerful tool for judging results, but what you measure really matters. Many small business owners focus on the number of page “likes” or “followers” they get as an indication of how well they’re doing on social media. However, these “vanity metrics” don’t tell you much about how well your social media or content marketing efforts are working. In a post for the KissMetrics blog, marketing analyst Lars Lofgren explains, “Vanity metrics are all those data points that make us feel good if they go up, but they don’t help us make decisions.” Before putting a lot of stock into any metrics from social media insights or Google Analytics, ﬁrst decide which numbers will realistically indicate how

well your efforts are working. These will be things such as new leads, sales and net revenue. After deﬁning your key performance indicators, look at ways to measure them using the tools available to you. Otherwise, you’ll be inundated with a lot of numbers that may or may not be relevant to the health of your business. In his e-book “A Field Guide to the 4 Types of Content Marketing Metrics,” digital media entrepreneur Jay Baer breaks down content marketing

metrics, and the basic questions they answer, into four categories: • Consumption Metrics – How many people read, viewed, listened to or downloaded a piece of content; • Sharing Metrics – How many people shared a piece of content; • Lead-Gen Metrics – How often consumption of content resulted in a sales inquiry; Sales Metrics – How many orders you received, or how much money you made because of your online content. The last two in particular tell you how well your business development efforts are performing. They are far more important than likes and follows. If your lead generation and revenue numbers aren’t where you anticipated or are not at a level you need

Kitsap Bank switches to video for annual report KPBJ staff report

Kitsap Bank has gone fully digital in publishing its 2015 annual report, which contains some milestones for the Port Orchard-based bank that has 21 locations in Western Washington. Olympic Bancorp, parent company for Kitsap Bank, reported 2015 yearend results with net income topping $8.4 million, up 30 percent year over year. Total deposits grew 15 percent to $962 million, and loans totaled $584 million, an increase of 22 percent for the year. The bank hit a milestone in total assets at

mid-year, exceeding $1 billion for the ﬁrst time. Assets totaled $1.08 billion at the end of 2015. The strong increases are partly due to Kitsap Bank’s acquisition of Fife Commercial Bank in the third quarter.“We are pleased with our performance,” president and Chief Executive Officer Steve Politakis said in a news release. “The economy in our market is rebounding, and we are seeing very positive signs with housing appreciation and new construction. Business owners are expanding and investing in their companies. We remain focused

on the long term and are optimisticaboutthefuture.” For the ﬁrst time, the bank’s annual report was not published in print form. Instead, the bank created a “microsite” that integrates videos highlighting key developments from the past year, along with a video message from Politakis. In previous years there were digital presentations developed from the printed report to supplement it, but for the 2015 report the bank created a new microsite (www.kitsapbank.com/ annual-report-2015/). See VIDEO, 18

them to be to sustain and grow your business, you’ll know you need to make some changes and you can begin taking action. • For more help with social media or other ways to grow your business, contact SCORE — Mentors to America’s Small Business.

SCORE is a nonprofit organization with more than 12,000 volunteers who provide free, confidential business mentoring and training workshops to small business owners. To contact Kitsap SCORE, email kitsap@ scorevolunteer.org or visit kitsapscore.org. Ken Sethney is a volun-

teer business mentor and branch manager for Kitsap SCORE. He is a former ad agency creative director and marketing coach who worked with the owners of midsizecompaniesthroughout the U.S. Contact Ken via email at ken.sethney@scorevolunteer.org.

Photo R-L: John Powers, Executive Director, Kitsap Economic Development Alliance (KEDA); Russell Steele, CEO, Port Madison Enterprises; Ben Anderson, KEDA Board Chair and CEO, Art Anderson Associates; Steve Politakis, Immediate Past Chair, KEDA Board of Directors and CEO, Kitsap Bank; JulieTappero, KEDA Board of Directors, and President, West Sound Workforce

Congratulations

Russell Steele Recipient of the 2016 Economic Development Lifetime Achievement Award In recognition of your generous and unwavering support of economic development efforts in Kitsap County. We honor your vision, longstanding leadership and tireless commitment to improving and enhancing the overall quality of life and economic opportunities for Kitsap residents.

4312 Kitsap Way, Suite 103 • Bremerton 360-377-9499 | www.kitsapeda.org

| May 2016 |

BUSINESS STRATEGY | DAN WEEDIN

Hitting the fastball for power in business

obin Yount was one of the great major league baseball players of the 1970s, ’80s and early ’90s. Yount played his entire career with the Milwaukee Brewers and his accomplishments catapulted him into the Baseball Hall of Fame. I remember at his retirement he explained when he knew his time in the game was over. Yount said that when pitchers started throwing a “split-ﬁnger fastball,” he couldn’t hit it, and he knew he was no longer in a position to adjust. So he called it a career. The “split-ﬁnger fastball” is a derivation of a curveball. The arm motion of the pitcher is the same as a fastball. The ball looks like, and has the velocity of a fastball. However, as it reaches a few feet from the hitter — who’s had to commit to swing by this point — it drops out of the strike zone like it was falling off a table, leaving the batter looking foolish and shaking his head. It’s hard to hit a curveball at the major-league level. That’s why so many tremendous hitting prospects never pan out. They can all hit a fastball, but in order to stay in the big leagues, one must master hitting the curve. In your business, you don’t have to hit the curveball to be suc-

cessful. Unfortunately, too many small and mid-market business owners try too hard to do just that. The consequences include lost revenue, lost opportunity, wasted time and effort, low morale, and feeling foolish and shaking their heads. Let’s deﬁne swinging at the curveball: 1. Overthinking strategy. Often, the best strategy for growth, new products and services, hiring employees and many other important decisions are the simplest. Overthinking, worrying and striving for the “perfect time” leads to delay and dismissal. Speed is crucial in business and overthinking only slows down what you know is right, results in missed opportunity, and creates stress and anxiety for many in the company. 2. Doing too much. It’s better to move one initiative or project forward one mile, than moving 10 of them forward an inch. If you’ve ever found yourself trying to do too many things at the same time and not doing any of them well, you’ll relate to this one! Eagerness to try new things is great; overloading yourself with too much will murder your employee morale, crush the quality of your product/service, and shrink your proﬁt. 3. Perfectionism. Business is about success, not perfection. In fact, you will be more perfect in

your imperfection! None of your clients and customers expects perfection; they expect quality and responsiveness. The quest for presenting a perfect image, a perfect result, or hiring perfect employees is fraught with peril. That quest will never lead to your satisfaction, and only depress your employees and your top line revenue growth. You may be able to identify more “curveballs” in your business or industry. Suffice it to say, that trying too hard to be “too good” puts a lot of pressure on you and your employees. When athletes heap too much pressure on themselves, they most often fail miserably. When you do the same, the results are sadly the same. The good news is that you can be wildly successful by focusing on hitting the “fastball” for power. It’s the straightest pitch and its velocity towards you will aid in how far you hit it after making solid contact. Here are my Five Keys to Being a Business Slugger: 1. Know the curveball is coming. Obstacles are always going to be present on the path to success and signiﬁcance. You must identify obstacles to success, prepare for them, and create a plan to ﬁnd opportunity and thrive. This keeps you from being complacent and swinging at a pitch that won’t make it to the plate. 2. Ask for help. You can’t be

brilliant by yourself. Surround yourself with smart people: consultant/coach, attorney, CPA, insurance agent, IT professional and others. They will help you avoid becoming myopic and vulnerable. 3. Empower your leaders. Make an investment in your people. Provide leadership and skills training to build a great team. Grant them autonomy to fail and get back up. By committing to a leadership team, you build tremendous bench strength. 4. Be in the moment. Stop assuming; stop ruminating on the past; and stop dreading the future. Start being opportunistic; start being resilient, and start being in the moment. Being an entrepreneur is supposed to be fun. Plan for the future and then trust in those plans. Focus on the present and carry out those plans as they come up. 5. Implement balance. I’ve seen entrepreneurs and business leaders identify themselves based on their business. That often results

in working brutal hours in the name of “success.” Lack of life balance is not success. Instead, it’s declining physical health, deteriorating relationships with family and friends, increased anxiety, and a dreadful life experience. Just as you demand great quality work and customer service from your company, demand a high quality of life balance for yourself so you can actually run your company and enjoy your life. You can build a tremendous business by just hitting fastballs. Focus on what you control and what’s in front of you, so you don’t get caught looking. Here’s hoping you slide in ahead of the tag!

Medical

they can either afford to pay for these things for their parents, if they’re still around, or for themselves,” he said. “They have a sense of entitlement: ‘I’ve worked hard all my life, I’ve done well for myself, and so I want to have the best thing that’s available for me or my parents.’”

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whether that’s a state-of-the-art wheelchair or an adaptable bidet ($500-$1,200) that ﬁts on an existing toilet. “Typically they will feel like

• Dan Weedin is a strategist, speaker, author and executive coach. He helps small business and middle-market business leaders and entrepreneurs to grow more proﬁtably and create a better life. You can reach Dan at 360-6971058; e-mail at dan@danweedin. com or visit www.DanWeedin. com.

West Sound Workforce Celebrating over 6,000 successful job placements on the Kitsap Peninsula! Kitsap County (360) 394-1882 561320 - Temporary Help Services 561312 - Executive Search Services 561311 - Employment Agencies

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More Opportunity. Spirited Community. The Best Place to Be.

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WHATâ&#x20AC;&#x2122;S HAPPENING NEXT?

The Chamber of Commerce has just launched a lively new video targeted to those considering relocation to Gig Harbor. It brings local voices together in candid interviews to share their perspectives. View it now at www.gigharborchamber.net/WhoWeAre.

One of the things making the â&#x20AC;&#x2DC;Gig Festâ&#x20AC;&#x2122; a great time year after year is that it combines beloved family traditions â&#x20AC;&#x201D; including a genuine small town parade, with new business opportunities and fun things for Gig Fest-goers to see and do. So it never gets old.

June 4 & 5

C H A M B E R

Locals Showcase Gig Harbor in New Video

O F

Warren Zimmerman, Gig Harbor Chamber of Commerce president and CEO, kicked off the event with

A sense of community permeates daily life in Gig Harbor welcoming everybody. â&#x20AC;&#x201D; Dennis Minor

A cross section of city, business, and community members attended the premiere including City Administrator, Ron Williams; Gig Harbor City Council members; Chamber of Commerce board of directors members; generous

opening remarks, then invited Blue Highway Productions producer, Dennis Minor, on stage and direction. â&#x20AC;&#x153;Gig Harbor: Coming Homeâ&#x20AC;? was conceived as â&#x20AC;&#x153;Tied to the Waterâ&#x20AC;? video launched

history by means of narration and handsome scenes, â&#x20AC;&#x153;Gig Harbor: Coming Homeâ&#x20AC;? invites viewers into the present through the words of those interviewed based on their personal experiences. The video touches on recreation, restaurants, the waterfront, shopping, education and healthcare. More importantly, those considering relocation that seek insight into what the community is all about and why residents love to come back home will be rewarded. As one local puts it, â&#x20AC;&#x153;Gig Harbor never disappoints.â&#x20AC;? â&#x20AC;&#x153;Gig Harbor: Coming Homeâ&#x20AC;? can now be viewed at www.gigharborchamber.net/WhoWeAre as well as on YouTube and Vimeo.

Other Upcoming Events Public Affairs Forum Thursdays, 7:30 AM May 5, 12, 19, 26

Young Professionals Wednesday, May 18, 1:00 PM Host: The Hub

Membership Luncheon Thursday, May 5 Topic: Goal Setting

Business After Hours Wednesday, May 25, 5:30 PM Host: Blackwater Trading Gallery

Learn more at: www.gigharborchamber.net/calendar Connect with us at:

H E Y, D I D YO U K N OW ? â&#x20AC;˘ Over 100 businesses participate in the parade â&#x20AC;˘ More than 20,000 walkers and 140 cars, trucks and floats travel the parade route â&#x20AC;˘ 15,000 or more people visit Gig Harbor just for the one event â&#x20AC;˘ It takes Chamber staff and a committee of volunteers 6 months to plan the two day event

P A R T N E R

A lively new video titled, â&#x20AC;&#x153;Gig Harbor: Coming Home,â&#x20AC;? brings local voices together in candid interviews for the benefit of those considering relocation for personal or professional reasons. The video was screened for the first time during an afternoon Premiere Launch Party on April 6 at Galaxy Theatre Uptown.

sponsors; and the thoughtful locals interviewed for the video.

C O M M E R C E

Who better than local residents and business owners to bring to life the rich, unique experience of living and working in Gig Harbor?

| May 2016 |

Passenger-only ferries goes on ballot ■ Voters will decide on Kitsap Transit’s funding proposal in November By Ed Friedrich efriedrich@kitsapsun.com 360-475-3792

Now it’s up to the voters. The Kitsap Transit board of commissioners moved Tuesday to place cross-Sound passengeronly ferry service on the Nov. 8 general election ballot. If the proposal were approved, Kitsap County’s sales tax would increase to 9 percent from 8.7 percent to fund the program. The plan calls for routes to Seattle from Bremerton, Kingston and Southworth, operated for Kitsap Transit by King County, which runs ferries between downtown Seattle and West Seattle and downtown Seattle and Vashon Island. Bremerton service would begin in July 2017, Kingston in July 2018 and Southworth in July 2020. The board voted 7-2 to proceed. Dissenting were Poulsbo Mayor Becky Erickson and Poulsbo City Councilman Ed Stern. Before voting, board members heard from 34 residents speaking for and against the plan. Speakers supported it because of the following: ■ They don’t trust Washington State Ferries, with its precarious funding, to maintain service. ■ It would allow local control of transportation decisions. ■ Commuters would bring

MEEGAN M. REID / KITSAP SUN FILE

The Rich Passage 1, which Kitsap Transit would use for passenger-only ferry service, makes a run in June 2012. ■ Vitality comes with being connected to the region. State fast ferries brought new residents to Bremerton years ago, and it could happen again, said Mike Miller. Miller, who was one of them, commuted to his downtown office before joining Rice Fergus Miller in Bremerton. The architectural ﬁrm now has 45 employees, including six ferry commuters, and is doing work around the world. “It’s imperative for business and the general community that

passenger-only ferries be brought back to life,” he said. Reasons cited by those not wanting fast ferries on the ballot included the following: ■ Sales taxes are regressive, hurting low-income people the most. ■ County residents would pay for a service that beneﬁts a relative few. ■ Fast ferries shouldn’t get funding until Sunday and evening bus service are restored. ■ All efforts will be focused on

video elements that are more engaging and portray “the true essence or our The videos on the site organization.” highlight key develop“Our goal for the ments from the past annual report was year, including the secto go beyond the ond annual edg3 Fund limitations of print,” award for sustainability Childs said. The key IMAGE FROM KITSAPBANK.COM by a small business, and to presenting more the bank’s $408,000 in A message from CEO Steve Politakis is one of the elements in Kitsap Bank’s than facts and figdonations to commu- 2015 annual report that was issued in video format for the first time. ures, she added, nity nonprofits — most was “leveraging the notably for installing a turf field for the bank, said the switch to an video work we have been creating and resurfacing the track at South online annual report was partly over the past several years. Kitsap High School’s football sta- to eliminate printing costs and to “They say a picture is worth dium. be environmentally responsible 1,000 words; well video is worth Shannon Childs, senior vice by reducing the use of resources. a thousand times more! It brings president and marketing director It was also a decision to utilize humanity, inspiration, and ex-

citement to our storytelling. Integrating these stories into the microsite has helped to frame the message and provide the perspective that we wanted to achieve.” In his video message, Politakis said 2015 was a “monumental year” for the bank. He noted that home values in the region are appreciating again, and that Kitsap Bank is doing a signiﬁcant amount of construction lending. “We’ve got numerous construction projects — Poulsbo, Bainbridge Island, Gig Harbor market, even here in Port Orchard and Bremerton,” he said. “So all of those are very, very positive signs.”

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checks home from Seattle and spend them in Kitsap, creating jobs and a multiplier effect. ■ It would connect Kitsap to one of the nation’s hottest economic hubs, and jobs. ■ Investing in waterfronts and tourism is good business. ■ Fast ferries also bring commuters to Kitsap. ■ It’s needed for Bremerton to grow and thrive. ■ It’ll draw traffic away from Bainbridge Island and relieve congestion there.

Bremerton; Kingston and Southworth won’t get anything. ■ A volunteer task force corrupted the process by wielding undue influence. ■ Rich Passage residents would sue again to stop the boats. ■ The Rich Passage 1 ferry is dangerous and won’t be able to consistently make 30-minute sailings. ■ The service should be provided by private industry. Roy Runyon, a Kitsap Transit driver and former Bremerton city councilman, told the board it should scrap the ferry plan and grab the last one-tenth of 1 percent of sales tax it has available for buses. That would generate about $4 million per year. “Look at that one-tenth of 1 percent and talk about how you can best serve the citizens of Kitsap County,” he said. Stern, the Poulsbo councilman who voted against the resolution, said he wanted a Plan B, such as starting with just Bremerton, which has the state ferries as a backup, and tying cost more to benefits. Erickson said the county could accomplish many things with $355 million over 20 years the ferries would get, such as restoring Sunday bus service and relieving congestion in Gorst, Silverdale and on Highway 305. The agency’s ties with a volunteer task force of influentials might have crossed the line into electioneering, she said. “I’m disappointed in finding the process has been altered by a select few to take advantage of the vast majority,” she said.

Minding from 14

number of people working or seeking work) was up about 3,500 fromtheﬁrstthreemonthsof2015, reaching an average of 118,651. An average of 111,711 residents were employed during the ﬁrst three months of the year. The county unemployment rate hovered at about 5.8 percent. • These items originally appeared on the blog Minding Your Business by Kitsap Sun reporter Tad Sooter. To comment or read more, go to pugetsoundblogs. com/minding-your-business.

Kitsap Building Association • www.KitsapHBA.com Events And Activities May 2016

EWSLETTER KBA NEWSLETTER

www.kitsaphba.com

TUESDAY, MAY 3 Auction Committee Mtg., 3pm Liberty Bay Bank, Poulsbo WEDNESDAY, MAY 4 Building Safety Month Event Kitsap DCD 1pm – 4pm Olympic College Job Fair 12pm – 3pm Bremerton Campus KBA Members Hiring Remodelers Council Meeting 4pm at the KBA New Building Codes - Update THURSDAY, MAY 5 Developers Council 7:30am at the KBA SEPA/LUPA/Stormwater TUESDAY, MAY 10 Auction Committee Mtg., 3pm Liberty Bay Bank, Poulsbo THURSDAY, MAY 12 Kingston Lumber Contractor Appreciation Event 4pm – 7pm TUESDAY, MAY 17 Auction Committee Mtg., 3pm Liberty Bay Bank, Poulsbo TUESDAY, MAY 24 Auction Committee Mtg., 3pm Liberty Bay Bank, Poulsbo THURSDAY, MAY 26 Exec. Cmt. 2:00pm Gov. Affairs Cmt. 2:30pm Board of Directors 3:30pm MONDAY, MAY 30 KBA Office Closed Memorial Day COMING in JUNE: KBA Dinner & Annual AHC Auction Friday, June 3 Kitsap Golf & Country Club 5:30pm – 9pm Code Class Significant Changes to the 2015 Codes Class at KBA Office, June 9 Register: www.biaw.com 360-352-7800 Move That House! Class Perfect Class for Continuing Education! KBA Office, June 10 Register: www.biaw.com 360-352-7800

It’s time again for the annual KBA dinner and Affordable Housing Council auction. This year’s event theme is a Sock Hop! What fun! Please donate a new item to be auctioned off. We also are happy to take cash sponsorships. Cash contributions help the KBA pay for the event. Of course, you’re also welcome to simply make a cash contribution to the Affordable Housing Council. The Affordable Housing Council of the HBA of Kitsap County is the political action committee affiliated to the Association. Funds contributed to the AHC are used to support candidates that want to run and serve in public office. Your contributions help to encourage quality candidates to run by letting them know they can expect financial support. Campaigns are expensive. The cost of printing materials and postage is high. The cost of campaign signs is steep. The Affordable Housing Council of the HBA of Kitsap County, as an ongoing PAC, has limitations on how much it can give to any single candidate in any single race. But even so, when you consider how many elected offices exist in Kitsap, it is important that the funds be collected throughout the year. Please consider donating to the annual auction and attending! This night is always a great deal of fun. The social/mixer to kick it off is a great opportunity to meet candidates and currently elected people from our community, as well as other KBA members and friends. Dinner at the Kitsap Golf & Country Club is always delicious and is topped off with a fun dessert. The live auction is managed for the KBA by Stokes’ Auction House and is done with flair and fun! Friday June 3 “Sock Hop!” Themed Dinner and Auction Kitsap Golf & Country Club Register online at www.kitsaphba.com by navigating to the Events & News page/calendar Unlock the Value of Membership: Join in May Fighting for housing on major policy issues, providing excellent educational programming, and creating outstanding networking opportunities are just some of the ways that National Association of Home Builders (NAHB) fulfills its mandate to support housing. NAHB members will save a total of about $5,707 per housing start in 2016 due to NAHB’s advocacy efforts in 2015 and other select member benefits. NAHB urges members to take full advantage of the many resources that it offers. They are designed to help you build a better home, build a better business and work in a policy environment that enables your business -and those of your associates in the home building industry -- to thrive. You join NAHB when you join the Kitsap Building Association. Members enjoy a three-in-one membership ensuring they are covered at the local, state, and national level. Join today by visiting our website, www.kitsaphba.com and following the “Join Now” button! It’s easy and rewarding.

2016 Ofﬁcers President................................... Kevin Ryan 1st Vice President............... Miriam Villiard 2nd Vice President ...........Berni Kenworthy Treasurer ............................. Leslie Peterson Secretary ..............................Brent Marmon Immediate Past President..... Judy Mentor Eagleson

2016 Builders & Assoc. Directors Bill Broughton, Ellen Ross-Cardoso, Walter Galitzki, Stuart Hager, Jim Heins, Joe Hurtt, Chad Lyons, Brendan McGeer, Jo Pederson, Shad Smallwood

2016 State Directors Robert Baglio, Lary Coppola, Judy Mentor Eagleson, Wayne Keffer, Berni Kenworthy, Ron Perkerewicz, Kevin Ryan, Miriam Villiard

2016 Alternate State Directors Rick Cadwell, Kevin Hancock, Byron Harris, Justin Ingalls

Life State Directors Bill Parnell

2016 National Directors Berni Kenworthy, Shawnee Spencer, Kevin Ryan

2016 Alternate Natnl. Directors Mike Brown, Jeff Coombe

Life Directors Rick Courson, Bob Helm, Bill Parnell, John Schufreider, Dori Shobert, Jim Smalley, Larry Ward

2016 Council & Committee Chairs Build A Better Christmas ..... Randy Biegewald Built Green.............................Walter Galitzki By Laws & Nominations ........Judy Eagleson Developers Council..................... Mike Wnek Golf Classic........................Shawnee Spencer Govt. Affairs Cmt..................Miriam Villiard Remodelers Council Chair.....Molly McCabe Membership ....................... Berni Kenworthy Parade of Homes .................................... TBD Peninsula H&G Expo....................Lena Price Peninsula H&R Expo Leslie Peterson & Judy Eagleson

HBA Staff Exec. Vice President .....Teresa Osinski, CGP tosinski@kitsaphba.com Events & Admin. Assistant .......Katie Revis hbaevents@kitsaphba.com

Home Builders Association of Kitsap County 5251 Auto Center Way, Bremerton, WA 98312 (360) 479-5778 • (800) 200-5778 FAX (360) 479-0313

www.KitsapHBA.com

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Kitsap Building Association • www.KitsapHBA.com

EWSLETTER KBA NEWSLETTER

Miriam Villiard, Heritage Builders NW LLC

What is the Affordable Housing Council of the HBA of Kitsap County (AHC)? The AHC is the Association’s political action committee. Funds are generated through member contributions and our annual auction fundraiser. The donations made by members and friends are used to support political campaigns under the decision making authority of the Board of Trustees. As a PAC strict reporting requirements are mandated by the Public Disclosure Commission. The AHC reports its monthly income and expenditures, as well as the names of all donors, to the Public Disclosure Commission. The Kitsap Building Association does not make contributions to the AHC, nor does the KBA spend general fund dollars on political activity. Decisions about how PAC funds are spent are made by the KBA Board of Directors in their capacity as the Board of Trustees of the PAC. However, unlike other organizations, we allow all our members to participate in all discussions and interviews of candidates through our Government Affairs Committee. Participants in the Committee discuss and make recommendations about endorsements. Their recommendations are carried forward by the Government Affairs Committee Chair who is also the Association’s First Vice President. The Chair of the committee brings to the Board of Trustees the GAC recommendations at the next scheduled opportunity. It is important to note that contributions from the PAC to candidates are strictly regulated by the Public Disclosure Commissioner and so contributions are only made within the strict limitations they’ve set. The AHC generates funds primarily through the annual auction, but also through the direct contributions of members. The 2016 auction is set for Friday June 3, 2016. Please see the promotion on page one and at the bottom of this page. This is an important fundraiser and all our friends and members are encouraged to donate and attend. Your support helps to make sure the construction industry has a voice in our community! Remember, donations to a PAC like the AHC are not deductible in the way other donations may be. Be sure to consult your tax advisor. Donations by the industry and friends of the industry are what make up the available funds for use in campaigns. AHC funds are given directly to candidate campaigns and from time to time funds are given to other political action committees. Each year the AHC gives some of the PAC funds to the Washington Affordable Housing Council. This ensures the KBA is able to participate in Legislative campaigns for the 3 legislative districts in Kitsap County. In this way, again, local contributions are supporting races that affect our industry here in Kitsap County. Overall, most of the funds in the AHC are used for county and municipal races. These races have fairly low contribution limits; a maximum of $950 per candidate/ per election. An election is each the primary and the general. With 4 cities and the county, and numerous seats and campaigns, the AHC is most effective when the industry gives generously at the auction and through direct contributions. KBA members, please remember the GAC meets monthly and you are welcome to attend. During the campaign season the GAC holds interviews of folks running for ofﬁce. Watch the monthly event post card, this newsletter, your monthly email, and the KBA online calendar for dates and times.

Enroll Now in R.O.I.I. Select® All employers in the construction trades (this is a large category) should find out if they can benefit from the Return on Industrial Insurance Select Program offered through the Building Industry Association of Washington. Only members can benefit, but anyone can ask for a review and consideration. Last year the KBA returned half a million dollars to our participating member companies. The average refund percentage was 45%! If you are paying L&I for your workers, and you are a safe company with a favorable experience rating, you should consider finding out more. What would you do with money back from L&I? Would you use it to pay out bonuses? Would you use it to reinvest in equipment? Would you use it to cover the cost of other benefits? Dare to compare! If you’re already in another similar program, find out if they offer you outcome-based claims assistance, risk management services, a return-to-work options program, L&I audit assistance, claims investigations and litigation, and safety services. How do they stack up against R.O.I.I. Select®? R.O.I.I. Select® offers in-house services to its member companies and is transparent about the way it calculates enrollment fees and pay-outs. Don’t miss out! Now is the time to check out this important program, available to the construction industry. The R.O.I.I. Select® program has been helping construction companies for decades! Find out how this program can improve your bottom line. Contact the KBA today for an application!

It’s a Sock Hop! Affordable Housing Council Auction and KBA Dinner, June 3, 2016 It’s that time of the year again! Mark your calendars for The Affordable Housing Council Auction & Kitsap Building Association Dinner! The fun begins with a silent auction and social at 5:30pm. Dinner is at 7 with the live auction starting at 7:30pm. Invitations have been sent to all members and past participants. If you haven’t received yours, please contact the Kitsap Building Association. Tickets are $50 per person, or purchase a table of 8 for $400, or a VIP table of 8 for $550. VIP’s have more fun! This year’s theme is Sock Hop and we hope to see all of you in your best Sock Hop attire! This event is a fun evening of networking among members, non-members and elected ofﬁcials. The proceeds from the auction go to the Affordable Housing Council (AHC), which is the political action committee (PAC) of the association.

KBA NEWSLETTER KBA NEWSL

Government Affairs Committee

Kitsap Building Association • www.KitsapHBA.com His Hands Lawn Care & Services Inc. Dustin Orozco PO Box 3750 Silverdale, WA 98383 (360) 698-2581 (360) 516-6547 Fax dustin@hishandslawncare.com And the SPIKE goes to… Miriam Villiard Heritage Builders NW LLC City of Bainbridge Island James Weaver 280 Madison Ave N Bainbridge Island, WA 98110 (206) 780-3750 jweaver@bainbridgewa.gov www.bainbridgewa.gov And the SPIKE goes to… Lary Coppola Port of Allyn Attorney’s Title Paul Hoffman 9633 Levin Rd, Suite 101 Silverdale, WA 98383 (360) 337-2000 paul@atkitsap.com www.atkitsap.com And the SPIKE goes to… Berni Kenworthy Pe Team 4 Engineering

EDUCATION OPPORTUNITIES UPCOMING CLASSES – Open to all Industry Professionals The KBA — Your source for education! KBA classes are affordable, local, and on topics important to your business. Members receive a special discounted tuition rate, but all professionals are welcome to register and attend our classes. Designations are available to all that take certain combinations of classes too! Ask the KBA or the BIAW for more information on designations and how one can give you the competitive advantage! June 9 – Significant Changes to the 2015 Building Codes – 8am June 10 – Move That House! Selling the Contingent Home – 1pm July 20—Certified Erosion & Sediment Control Lead (2 days) July 22—CESCL Recertification—8am October 26—Construction Management—8am November 2—Estimating for Builders & Remodelers—8am All courses listed above are through the BIAW but offered here at the KBA Bremerton office. Register directly with BIAW (www.biaw.com).

THANK YOU RENEWING MEMBERS 32 Years! Pioneer Builders Inc. 26 Years McCormick Land Co Inc. 23 Years Central Highlands Inc. 20 Years Eagle Homes Inc. Over 15 Years Washington Federal (19) KG & Sons Inc (19) Four Aces Drywall Inc (19) Hard Rock Inc. 15 Years Markay Cabinets Inc. Over 10 Years Morrison Gravel Inc (14) Advanced Door Service Inc Team 4 Engineering

10 Years The Roof Doctor Over 5 Years Peninsula Credit Union (9) JB Concrete (9) Acupuncture abd Wellness Center Evergreen Home Loans Mitchell Lumber Company 5 Years Estes Builders Over 1 Year Peninsula Electric Corp (4) Lowe’s (4) Haselwood Chevrolet, BUICK, GMC Edge West LLC Advantage Nissan 1 Year Tara Scouten/John L Scott Poulsbo

KBA NEWSLETTER KBA NEWSL

EWSLETTER KBA NEWSLETTER

WELCOME NEW MEMBERS

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| May 2016 |

Drivers from 5

ever hours and routes are left. Some small routes were shut down this week, but nobody was stranded, Clauson said. Sandy Starkey waited for her bus to arrive Tuesday in Silverdale. “I’m sitting there and I’m sitting there,” she said, thinking the bus more likely broke down than was delayed by the driver shortage. “I called (customer service) and they said we’re not running a bus at this hour but next hour. I said what about appointments? They said we’re sorry.” Fortunately she didn’t have a doctor’s appointment and her planswereadaptable.The67-yearold is a disabled veteran, but can walkbetweenbusstops.She’sconcerned about friends who can’t. She also wonders how riders are supposed to know if their bus is canceled. If they have a smartphone, they can sign up for email or text message alerts. All state transit agencies are having difficulty hiring drivers, said Justin Leighton, executive director of Washington State Transit Association. He hadn’t

PHOTOS BY LARRY STEAGALL/KITSAP SUN

Troy Erickson prepares his bus on Kitsap Transit’s number 11 route. The agency is experiencing a driver shortage, due largely to an unusual combination of long-term illnesses, vacations and routine sick calls.

heard of instances where it affected their schedules, however. It’s the result of an aging work-

Parking from 23

discuss a proposal that could require developers of apartment complexes to provide the equivalent of only half a parking spot for each unit built within Bremerton’s biggest population centers, such as Manette and Charleston. Projects built orunder construction downtownhaveprovidedatleastonespaceforeach unit. The 606 apartments on Burwell rents spaces for units in the city-owned garage below it, according to the city’s community development department. Wes Larson, a Bremerton developer with many projects throughout Puget Sound, said the Spyglass Apartments overlooking the Manette Bridge will have 110 spaces for about 80 units. Larson likes the idea that in urban spaces, residents can do without cars, pointing out that some Seattle projects are under construction with no parking spaces included. But he acknowledges downtown Bremerton doesn’t have the transit network Seattle has and still lacks a grocery and drugstore. “I love the urban ideal and I think we’ll get there, but that’s not the reality in Kitsap County yet,” Larson said. “You still need an iron sled.”

force, service growth and a stronger economy. “When you have regular attri-

tion, vacation days and sick days, alotoftransitagenciesarestarting to see a need for drivers to become

a high priority,” he said. “You’re starting to see an emphasis on hiring and training these drivers.” People are even less drawn to driving school buses. Drivers work the mornings and afternoons with a big unpaid gap in between. And they have to deal with kids. During the recession, drivers were easier to ﬁnd. “It’s gotten worse over the last couple years,” said Allan Jones, director of student transportation for the state Office of Superintendent of Public Instruction. “As the economy improves, there are more job openings out there.” Getting kids to and from school often takes “inventive dispatching,” Jones said. Generally they’ll hang out until drivers can get to them. Outside of the economy tanking again, a solution is elusive. “If I had an answer to how you ﬁx the driver shortage, I’d have a pile of money,” Jones said. A person doesn’t need experience to drive for Kitsap Transit but must be at least 18 years old, have a valid Washington driver’s license and an excellent driving record. Visit http://www.kitsaptransit.com/agency-information/ employment.

Parametrix moving Bremerton office ■ Engineering firm will rent Harborside third-floor space from Kitsap Transit By Kitsap Sun staff

Parametrix will move this summer from space overlooking Oyster Bay to offices looking out at Sinclair Inlet. The engineering firm has reached terms with Kitsap Transit to occupy 5,700 feet on the third — top — floor of the Harborside Building beside the ferry terminal. Both partners are happy with the deal. Kitsap Transit owns the second floor, which it occupies, and the third. The area Parametrix is taking was vacated by Propel Insurance in October and has generated no revenue since. Parametrix’s current landlord at 4660 Kitsap Way sought to renew the lease, which ends June 30, for no more than two years. “We were looking for at least a five-year

lease for our team, and this opportunity came up,” company vice pPresident Kristie Casarez said. “It’s a great space, great lease terms and it just worked out.” Parametrix, which will move in by July 1, also was looking to downsize from its current 9,000-square-foot space. Only about 20 of the company’s 375 employees work here. Beginning July 1, Parametrix will lease the space for $102,600 a year — $18 per square foot. It has an option for a second ﬁve years. It’ll share the ﬂoor with Kitsap Conference Center, which leases 6,750 square feet. A 1,450-square-foot area remains available. The average full-service rate for highend office space in downtown Bremerton was $21.50 per square foot during the fourth quarter of 2015, the latest period for

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which statistics are available, according to commercial real estate experts CoStar Group. There was a vacancy rate of 2.7 percent. The location offers public transportation options for commuting and for serving clients. “It’s beautiful,” Casarez said. “We have a large office in Seattle we can connect to with the ferry. We will be within walking distance of a lot of partners as well as restaurants and shops, so it becomes a lot more pedestrian-friendly location for us.” Parametrix, founded in 1969 in Sumner, has offices across the western United States. The company provides services in transportation, environmental planning and compliance, water resources and community building.

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CHAMBER

K I T S A P

NORTH MASON

30 NE Romance Hill Road, Belfair, WA 98528 | 360.275.4267 | northmasonchamber.com | explorehoodcanal.com

MAKE A NOTE OF IT UPCOMING CHAMBER EVENTS

ENGAGE … ENERGIZE … EXCEL

Ribbon Cutting Celebration Buck Shop, Belfair 9:00 a.m. – 7:30 p.m. 9:30 a.m. ribbon cutting

SATURDAY, MAY 7

TUESDAY, MAY 10 Professional Development Group Reid Realty, Belfair 7:30 a.m.

May 7 through September 9:00 a.m. – 2:00 p.m. HUB Center for Seniors, We are on fire this month - fifteen new Seahawks’ Stadium Announcer Randy members, winning events and spring is here! Rowland inspired us with his positive take Belfair First up, Stephany Burks and Nichole Becher on competition and collaboration at our www.belfairfarmersmarket.com

THURSDAY, MAY 12

WEL LCOM M E NEW M EMBE ERS

Business After Hours Sisters Point Cabin, Hood Canal 5:00 – 7:00 p.m. www.explorehoodcanal.com

Brown’s Garage Shelton, WA Marlo Brown, Owner www.brownsgarageshelton.com 360-427-2943

Hoodsport Winery Hoodsport, WA Peggy Patterson, Owner www.hoodsport.com 360-877-9894

Our Community Credit Union Union, WA Michelle Ritchie, Branch Manager www.ourcu.com 360-426-9701

Glen Ayr Resort Hoodsport, WA www.glenayr.com 360-877-9522

Robin B. O’Grady, Business Coach Belfair, WA robinogrady@wavecable.com 360-731-2313

Lucky Dog Casino Skokomish, WA www.myluckydogcasino.com 360-877-5656

The Dance Shack Shelton, WA Marlo Brown, Owner www.dance-shack.com 360-970-0226

Skokomish Indian Tribal Enterprise, Inc. Jonathan Schmitt, Dir. of Marketing Skokomish, WA www.skokomish.org 360-877-5656 Skokomish Park at Lake Cushman Hoodsport, WA 360-877-5760

Fred Holmes Tree Service Shelton, WA www.fredholmestreeservice.com 360-427-4489

BLUEGRASS FROM THE FOREST May 13-15 Shelton High School 360-426-1782 www.bluegrassfromtheforest.com

Waterfront Windows Misty Clarke, Owner Rochester, WA thewaterfrontwindows@gmail.com 360-229-8300

MASON COUNTY FOREST FESTIVAL

Washington State Dept. of Natural Resources Jesse Sims, Belfair & Hood Canal Recreation Manager www.dnr.wa.gov 360-275-0189

June 2-5 Shelton www.masoncountyforestfestival.org

P A G E

Waterfront Potlatch Potlatch, WA www.wfresort.com 360-877-9422

Talon Pathology Services, LLC Belfair, WA Steve Duniho, DVM, DACVP, Owner www.talonpathology.com 360-552-2792

May 7 Hama Hama Oyster Co. Lilliwaup www.hamahamaoysters.com

C O M M E R C E

Special thanks to Mendy Harlow and her team at The Salmon Center for hosting another fantastic Business After Hours event. Mendy is pictured here with Chamber CEO Stephanie Rowland (left) and Chamber Chair Elect Jeromy Hicks.

M.A.D. Real Estate Solutions, Inc. Melanie A. Douglas, Owner Port Orchard, WA www.madresolutions.com 1-844-623-7373

HAMA HAMA OYSTER RAMA

O F

WEDNESDAY, MAY 25 Chamber Monthly Luncheon Featuring Julie Tappero, West Sound Workforce Theler Community Center, Belfair 11:30 a.m. – lunch served 12:00 – 1:00 p.m. program

Union luncheon at Alderbrook Resort & Spa. He is joined here by Kathy Burbidge (left) and Trudy Hendricks, both of Alpine Way, our luncheon sponsor.

C H A M B E R

of SERVPRO set us straight on how best to prepare our homes and businesses for safety and survival at our luncheon sponsored by Kristen Granroth, Farmers Insurance, Reynolds Recruiting and Training Center.

J O U R N A L

Hama Hama Oyster Rama www.hamahamaoysters.com 11:00 a.m. - 4:00 p.m.

BELFAIR SATURDAY MARKET

B U S I N E S S

SATURDAY, MAY 7

FESTIVALS & EVENTS

P E N I N S U L A

B ELFAIR L ICENSING | V ISITOR C ENTER

| May 2016 |

Bainbridge couple turning Alabama’s Black Belt green ■ Entrepreneurs who made bamboo a mainstay in flooring

are growing it as a domestic crop to use in manufacturing By Charlie Ingram Business Alabama Reprinted with permission

Former Alabama First Lady Marsha Folsom was exposed to an idea several years ago that grabbed her and never let go. It was the idea that Alabama’s Black Belt would be a perfect region for growing bamboo and would benefit from the resulting increase in economic activity. But isn’t bamboo a China thing? Can Folsom be serious about bringing it to the Black Belt and the region’s lagging economy? Absolutely serious, says Folsom, a self-described advocate for various causes, including childhood education, economic development and poverty issues. Now you can add bamboo in the Black Belt to the list. For almost five years, Folsom has been working to help start an up-and-coming company called Resource Fiber, which is growing bamboo and will soon start manufacturing bamboo products in the Black Belt. It is the only company that both grows bamboo and manufactures bamboo products in the United States. “Bamboo is uniquely suited to the Black Belt,” says Folsom, a cofounder and chief development officer for Resource Fiber. “It’s the right climate and has great soil for it. We are actually bringing a brand new industry to a region that’s familiar with agriculture, familiar with wood and timber production and the manufacturing and processing of timber. Bamboo offers the potential to create new jobs and all the good things that go with that. I think it’s a perfect marriage.” Folsom presents a persuasive case. Bamboo is a booming, $35 billion industry and is expected to continue growing significantly. The United States is the world’s largest importer of bamboo products, yet virtually no bamboo is

OUR GOAL, by about 2020, is that we will have planted our own farm. The nursery, over the next 15 to 20 years, will generate enough plants to populate roughly 100,000 acres.” — David Knight, Resource Fiber co-founder

grown in the U.S. That presents a huge opportunity for Resource Fiber. Two key people at Resource Fiber are more than well-known in the bamboo industry and have established a strong success story there. That would be Ann and David Knight of Bainbridge Island, Washington, who also are co-founders of Resource Fiber. In the world of bamboo, they have been there, done that. In 1998, the Knights started what is now one of the nation’s leading bamboo ﬂooring brands, Teragren, using Chinese-grown and manufactured bamboo. They remain large shareholders in Bainbridge-based Teragren, which has more than 2,500 retail outlets in the United States with multiple customers internationally. But the Knights no longer hold board positions or manage day-to-day company operations. “For Ann and me, our passion these days is growing a bamboo company based on sustainable concepts in Alabama’s Black Belt,” says David Knight, Resource Fiber’s president and CEO. Resource Fiber was created through happenstance. It started

when Folsom first spoke with David Knight by phone about a matter unrelated to becoming bamboo business partners. But one thing led to another, and then the pieces started falling into place. “David and Ann were in the next phase of what they wanted to do (after Teragren), which was to bring bamboo growing and manufacturing to the United States,” Folsom says. “I talked them into coming down to Alabama, and we’ve been together ever since. “We put this company together in the den of our house in Cullman. David and Ann came, along with other co-founders, Craig Thomason and Dr. Jonathan Scherch. There were about 10 of us, most of whom are still on our advisory board. We met for three days, and that’s how Resource Fiber began, in November 2011.” Bamboo can be used in thousands of products — everything from furniture and flooring to material for 3D printing and alternative energy sources and textiles. What’s more, it is a rapidly renewable resource with several benefits for both growers and the environment. Bamboo is as strong or stronger than any other kind of wood and yields 20 times more fiber than trees, so it doesn’t take as much land to grow bamboo. It is actually a perennial grass that, when cut, grows back essentially on its own. No replanting is required once a stand is up. Because it grows so fast, timber bamboo can be harvested annually after reaching maturity in 8 to 10 years. Comparing bamboo to pine – think 20 years for pine to mature versus 1 year for bamboo. Bamboo captures five times more carbon than a similar-size area of trees, which helps reduce the amount of greenhouse emissions. It requires little water and fertilizer and no pesticides to grow. Resource Fiber’s nursery, near Eutaw, Alabama, in Greene

ART MERIPOL PHOTO

Gathered at the Resource Fiber nursery near Eutaw, Alabama are the company’s founding investors: former Alabama First Lady Marsha Folsom, left, and Ann and David Knight of Bainbridge Island.

County, is managed with a companion planting program that protects the soil and local wildlife, unlike the monoculture cotton farms of old that wore out the dirt through negligent growing practices. The 100-acre nursery is the largest in the U.S. and will produce an estimated 17 million bamboo plants in the next 20 years. “Our goal, by about 2020, is that we will have planted our own farm,” says Knight. “The nursery, over the next 15 to 20 years, will generate enough plants to populate roughly 100,000 acres. “We are planning to plant the ﬁrst ﬁve or six thousand acres ourselves on property we control, because that will allow us to furnish the farmers with management protocols, companion planting schemes, all of that. By about 2020, we will have excess plants that can go to the farmers, landowners and the like. “Part of the reason we located

in Alabama is because there are a number of small farmers here, and what we want to do is support them by selling them the plants out of the nursery, and we can provide management services, management protocols and also contract to buy back the harvest when it matures. We have different ways of working with the farming community.” Knight says Resource Fiber has raised $2 million so far and is hoping to raise another $1.2 million before the end of the year. Also, in the fourth quarter of this year, the company will do its primary ﬁnancing round, with a goal of raising $5 million. That will coincide with the opening of an interim manufacturing facility in Greene County, which would replace a facility Resource Fiber now has in Tennessee. By 2022 or so, Resource Fiber plans to build a new manuSee BAMBOO, 32

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| May 2016 |

Longtime businessman, civic booster dies ■ Gene Kennedy, founder of annual Bellringer charity

golf tournament, had battled brain cancer past few years By Tim Kelly

tim.kelly@kitsapsun.com 360-792-3359

Gene Kennedy, the longtime president of Silverdale-based Land Title Co. and a well-known civic booster who founded the Bellringer charity golf tournament, died April 5 at his McCormick Woods home after a four-year battle with cancer. He was 70. Some of his closest friends who worked with him for years and spent many a day golﬁng with Kennedy recalled him as an astute businessman who had a “quirky sense of humor,” as Steve Green put it. “He could always ﬁnd the fun in any situation,” said Green, who took over as president of Land Title Co. after Kennedy retired in 2012. “If you were having a tough time, he could always make you laugh and forget about things.”

Bamboo from 28

facturing facility in Greene County. The company plans initially to manufacture railroad ties, truck trailer bedding and construction joists made from its bamboo. It projects eventual revenues of more than $100 million, which would be only 1 percent of a $10 billion market for those products. Resource Fiber projects having 181 employees in Greene County in 2021 and expects each of those jobs to spawn another 2.5 jobs indirectly. Eventually, the company sees thousands of new jobs in the Black Belt due to bamboo growing and manufacturing. It has attracted at least

Thatwas echoed by Silverdale real estate attorney Jim Ryan, who represented Gene Kennedy Land Title Co. as one of his ﬁrst clients when he started practicing law in Kitsap. “Gene was always trying to get people to laugh and enjoy themselves, that was just a constant thing with him,” Ryan said. After retiring following a 40-year career with Land Title Co., Kennedy was diagnosed with two brain tumors. One was surgically removed, but the other was inoperable, though Kennedy had been receiving an experimental vaccine along with chemotherapy and radiation treatments at Swedish Medical Center in Seattle. He seemed to be mak-

ing remarkable progress a year ago, recovering to the point he was able to play a round of golf for the ﬁrst time in two years on his 69th birthday. He also was able to take a trip with his wife, Marion, to Hawaii, one of their favorite vacation spots. And when they got back, he attended the Seattle Brain Cancer Walk in May 2015 to watch his wife and son participate. Unfortunately, his conditioned worsened later in the year and he was too weak to attend the 27th annual Bellringer tournament, held the week after Thanksgiving. The 2015 event at McCormick Woods raised a record of more than $8,000 donated to the Kitsap Sun’s holiday-season Bellringer campaign that supports area food banks. “We wanted to make sure the project continued on, and the results spoke for themselves,” Green said of

the turnout for the tournament, which began informally with Kennedy and a few friends. “Back then it was just eight of us sitting around at Kitsap Golf & Country Club,” Kennedy recalled in a May 2015 article in the Kitsap Peninsula Business Journal. “And I said let’s all throw in $20 and play a round of golf, and I’ll take the money down to the Bellringer fund.” He had last attended the Bellringer tournament in 2014, and though unable to play golf that day, he spoke to the friends gathered for the event he founded. “It was very poignant, very emotional for lot of people,” Ryan recalled, to see Kennedy with them a year after surgery to remove a brain tumor. Kennedy’s commitment to the community where he operated his business included serving as president

two well-known Birmingham investors: Scott Bryant, who played major roles in Homewood’s Soho Square development and Birmingham’s 20 Midtown, and Bill Jones, former O’Neal Steel president and CEO and co-chairman of O’Neal Industries, along with his wife, Walker. Says Jones: “This investment isn’t just the personal gain or personal reward vs. the risk. This is a very good potential beneﬁt for our state. If it works, terriﬁc. If it doesn’t, then I think it will have been a very, very good attempt to do something really good for this part of the state.” Thus far, Resource Fiber’s development has been slow but steady. But now the company is on the verge of hitting the radar screen.

“They have been very prudent,” Jones says. “Of all the information I’ve looked at, the projections and plans I’ve seen, they’ve all been carried out. And it’s because they are moving prudently, methodically, well-planned so that they just don’t get too far out ahead of themselves.” The Knights are ﬁrm believers in protecting the environment and running a business so that it enhances the quality of life in the community. But David Knight is clear when he says that business comes

ﬁrst. He and his wife are “business people to the core,” he says, adding that they “didn’t just wake up one day as bamboo environmentalists.” “What we’re developing is the 21st-century business model, where there’s a balance with wealth creation, environmental responsibility and social responsibility,” he says. “We feel very strongly that one does not have to give up wealth creation or sacriﬁce wealth creation to focus on being environmentally or socially responsible.”

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of the Bremerton Chamber of Commerce in the 1980s, and he was an early advocate for revitalizing downtown Bremerton after businesses began moving out to the growing retail hub in Silverdale. “It absolutely was part of his business philosophy and his idea of civic duty” to be involved in supporting the community, Ryan said. “He was very active, and he thought it was just part of what people ought to be doing.” Green said his friend and mentor Kennedy set an example for everyone in the company with his dedication to community improvement. “This company prided itself, based up on his direction, on involvement in the community and supporting it wherever we could,” Green said. “He certainly made that mark on me.” Besides the golf tournament, which Land Title Co. still sponsors, the company supports causes such as Relay for Life, and its employ-

ees are actively involved in ways such as providing holiday food and gift baskets for families at a women’s shelter. And none of the charitable work that Kennedy did or inspired was done to gain any recognition. “Everybody recognized the joy that Gene got from doing it,” Green said. “People respected him and his sincerity in how he did it.” Ryan said Kennedy was always ethical in his business dealings, and “maintained high standards for his company and his staff.” Most of all, his friends said, he cared about people. “He was a very caring person, very thoughtful, and very generous,” Ryan said. “He’d do anything for his friends and his family.” That is Kennedy’s legacy, Green said. He said the most lasting lesson he’ll take from Kennedy’s life was, “Work is important, but family and friends are even more important than the job.”

KITSAP ’S PREMIER LIVE ENTER TAINMENT & E VENTS VENU K KIT UE

TOWER OF POWER & THE WILDCATS JANUARYJUNE 26 @4 7@P.M. SATURDAY, 8 P.M.

TICKETS: 360.373.6743 | admiraltheatre.org

Silverdale The Heartbeat of Kitsap Peninsula!

Thank you to our speakers Representative Jesse Young and County Commissioner Ed Wolfe. Thank you to our Sponsors:

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Water Trails Committee Meeting Thursdays, May 5th, 12th, 19th, and 26th 2:30 PM - 4:00 PM Global Bean, Inc. 9414 Ridgetop Blvd. NW, STE 106 Silverdale, WA 98383 Kitsap Business Forum Tuesday, May 10th • 7:30 AM - 9 AM What to do when the Big One Hits…. and we’re not talking Earthquake Speaker Dan Weedin Silverdale Beach Hotel 3073 NW Bucklin Hill RD Silverdale, WA 98383

Your Business Academy Tuesday, May 24th 7:30 PM - 9:00 PM Hop Jack’s 3171 NW Bucklin RD Silverdale, WA 98383 Silverdale Smiles Dentistry & Orthodontics Ribbon Cutting Ceremony Tuesday, May 24th General Membership Luncheon Wednesday, May 25th 11:30 AM - 1:00 PM Kitsap Golf & Country Club 3885 NW Golf Club Hill Road Bremerton, WA 98312

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SILVERDALE WATER FRONT

Booths & Sponsorships Available www.WaterTrailsFestival.com

ARE YOU A MEMBER YET? - JOIN THE SILVERDALE CHAMBER OF COMMERCE! 3100 NW Bucklin Hill Rd. Suite 100 • Silverdale, WA 98383 • 360.692.6800 • S I L V E R D A L E C H A M B E R . C O M

P A R T N E R

The Silverdale Chamber of Commerce Military Affairs Committee works year round to provide Military Appreciation Day. A Special Thank you to our Chair Person, Tricia Recee of Gateway Christian School for your commitment to our Military. The committee consists of: MSgt Jason Selby (USMC, retired) Marine Corp League Toys for Tots, Rita Nicolson of Stand up for Kids and ShareNet Food Bank, Frank Portello of Swarner Communications, Dana Clay of First Command Financial Planning, Dick French of First Command Planning, Kerri Selby of Fairway Mortgage, Kristine Witacre of Priority One Realty Inc., Barry Doll of Barry Doll Insurance, Shane McGraw of Shane McGraw Team, Mark Slavik of US Family Health Plans, Shelly King of Arena Sports Bar & Grill, Margie Perry of Geico, Connie Frank and Kathleen Gordon of Silverdale Chamber of Commerce, and Washington Youth Academy. Thank you to the businesses that allowed these committee members time to work on this event.

C O M M E R C E

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Good Morning Kitsap Tuesdays, May 3rd, 17th, and 31st 7:30 AM - 9:00 AM Hop Jack’s • 3171 Bucklin Hill Road Silverdale WA 98383

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Dentistry for Children–Bremerton/Port Orchard The Point Casino & Hotel Vincennes University US Family Health Plan at PacMed Express Employment Professionals Olympic College USAA Good Property Management, Inc. Miller Woodlawn Funeral Home & Memorial Park Silverdale Pediatric Dentistry–Dr. John Gibbons Navy Federal Credit Union Wave West Hills Auto Plex

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C H A M B E R

We thank our Military for your loyal service to our country! It is because of your sacrifice we enjoy our precious freedoms. On April 16, several thousand service men, women, and family members were generously provided free and discounted items from more than 100 businesses! Activities, events, and door prizes were provided to active duty, reservists, and retiree’s.

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K P B J

MILITARY APPRECIATION DAY

UP COMING EVENTS

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Greater Kingston Chamber of Commerce & Visitorâ&#x20AC;&#x2122;s Informa on Center

360-297-3813 / KingstonChamber.com

The Kingston Chamber of Commerce Presents Round Table Seminars, Lunch & Learn June 14th 12-2 pm At the Point Casino Featuring Nancy Maki of Open Gate Consulting nt The ďŹ rst seminar in our series focuses on â&#x20AC;&#x153;The Talent Tsunamiâ&#x20AC;?. Learn how to attract and keep your most valuable assets, a talented, motivated and dedicated team. $25 Early Bird registration includes lunch. Go to www.kingstonchamber.com

May 14th : Chamber Aďż˝er Hours hosted by The new Village Green Community Center West Kingston Rd. & Dulay Rd. 5-7p,m June 2nd : Chamber Business Luncheon Hosted by the Market Fresh BuďŹ&#x20AC;et Featuring Port of Kingston Commissioner, Mary McClure at The Point Casino 11:45am

June 14th: Talent Tsunami Seminar & Lunch at the Point Casino, noon-2pm

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May 5th: Hosted by the Kitsap Sun & Kitsap Peninsula Business Journal. Featuring Speaker Rob Gelder, Kitsap County Commissioner White Horse Golf Club 11:45am-1pm

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DID YOU KNOW THE GREATER KINGSTON AREA IS FULL OF PARKS AND TRAILS WITH AMAZING VIEWS? Spring is the perfect me to visit the north end of our beau ful Kitsap Peninsula. Before you head to the woods, stop by downtown to visit the candy shop, ice creamery, bakery, art gallery, ďŹ&#x201A;oral & home shop, local coďŹ&#x20AC;ee and nut roasters and more! Visit the Kingstonâ&#x20AC;&#x2122;s Farmers Market featuring live music every Saturday 9am2pm. Check out the NK Tourism Coali onâ&#x20AC;&#x2122;s website to get some great ideas for a fun day trip or an over-nighter! WaSanctuaryShore.com. Stop by Kingstonâ&#x20AC;&#x2122;s Visitors Center on Washington Blvd. across from the ferry terminal parking lot, for personal a en on from a real person! We look forward to seeing you in our neighborhood soon!

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| May 2016 |

REGION’S ECONOMY | JOHN POWERS

globe for its innovative leadership and competiveness in several key economic sectors: advanced manufacturing; aerospace; bio-technology; business services; clean technologies; cloud computing; digital media; e-commerce; ITC; international trade and logistics; maritime; military and defense; space; specialty food and beverage; and tourism. Kitsap is a percapita leader in several of these sectors: military and defense, advanced manufacturing, maritime, health care, information communication technology-IP, and tourism. The Central Puget Sound Economic Development District plays a key role in working with local and regional governments, businesses, tribes and NGOs to jointly plan for our collective economic future. We also work together to foster collaboration in developing economic opportunities throughout our region ... regardless of the particulareconomicbackyardthat the investment or job creation endeavor may eventually arise in. We do so because we understand the impact of such economic activity inures to the beneﬁt of our entire region. We know dollars invested by

businesses and the payroll dollars that follow do not stop circulating at city limits, county lines or tribal borders. A payroll check cut by Martha and Mary in Poulsbo may be spent on Auto Row in Bremerton. A PSNS employee may buy a hot dog and beer at Safeco Field. A downtown Seattle lawyer may very well shop at Central Market in Poulsbo, support the annual Bainbridge Rotary Auction, and pay her BI real estate taxes to the Kitsap County Treasurer. A Boeing engineer employed in Everett may contract with Kingstonbased Lyons Painting to renovate his home in North Kitsap. A clean technology start-up at the Olympic View Business Park at the Port of Bremerton may very well receive seed funding from a Bellevue venture capital firm. And, a department head at UW may elect to furnish her program’s offices with state-of-the-art sustainable furniture manufactured by Watson at Twelve Trees Business Park in North Kitsap. Bottom line — a dollar invested, or earned, in one city or particular county will likely circulate in several, if not all four, counties in our region. That’s what makes the wheels of commerce turn, and our dynamic region hum. To insure that our regional economy continues to attract investment, create jobs and prosper in a globally competitive market, the EDD is currently engaged in a yearlong process to update our four-county, five-year Compre-

hensive Economic Development Strategy (CEDS). This work began at the PSRC’s recent General Assembly at Husky Stadium in March, and will include outreach to, and direct input from, all four counties. At our upcoming Kitsap Economic Development Alliance’s Q2 board meeting on May 19, we will receive an extensive brieﬁng from the CEDS leadership team, and our board members will have an opportunity to share their perspective on key economic development objectives, and ﬁve-year strategies for the entire region, including our own backyard of Kitsap County. For more information about the Central Puget Sound Economic Development District’s Comprehensive Economic Development Strategy, and Kitsap’s role in the strategy, check out the following links: • psrc.org/econdev/res • psrc.org/assets/14019/RES • kitsapeda.org/demographics/ economy I welcome your perspective regarding our regional economy and Kitsap’s role in our region, and I invite you to share your views with me at powers@kitsapeda.org.

time Achievement Award to Port Madison Enterprises CEO Russell Steele in recognition of his support of economic develRussell Steele opment efforts in Kitsap County. Steele, who took the helm of Port Madison Enterprises in 2001, served on the KEDA board of directors for nine years (April 2007 through March 2016). As head of PME, an agency of the Suquamish Tribe, Steele has spearheaded the successful opening of Suquamish Clearwater Casino Resort, which recently has been expanded with addition of a 98-room hotel tower and 10,000

square feet of conference space at the waterfront facility. During his time running PME, which also acquired White Horse Golf Course a few years ago, the company’s workforce has grown from roughly 200 to over 900 with an additional 100 positions to be ﬁlled. “The Suquamish Tribe is proud of the work that Russell Steele has done to grow Port Madison Enterprises into the regional presence it has become and congratulate him on this honor. Not only is Russell a great business leader, but also a great mentor and friend to our Tribal community,” said Suquamish Tribal Chairman Leonard Forsman. The KEDA Economic Development Lifetime Achievement

Award has been awarded six times since 2004. The award recognizes exceptional service, demonstrated leadership, and direct creation of primary jobs and/or the creation of community assets needed for primary jobs. The KEDA meeting on March 30 also included election of officers. Ben Anderson, CEO of Art Anderson Associates, is the new board chair, succeeding Steve Politakis of Kitsap Bank. Monica Blackwood of Rice Fergus Miller is vice chair, and the treasurer is Nathan Evans of ATS. For more information on Kitsap Economic Development Alliance, visit www.kitsapeda.org. For more about living and working in Kitsap, visit www.kitsapconnected.org.

Investment and payroll dollars know no boundaries

hen it comes to competing for economic development opportunities (new ﬁnancial capital investment and new human capital — job creation activities) everyone’s parochial interests appear to be best served when those opportunities spring forward right in their own “economic backyard.” Yet, typically, such opportunities arise and grow in larger and more diverse economic backyards known as “regional economies.” Regional economies generally encompass multiple geo-political areas, stretch across thousands of square miles of landscape, and are home to tens of thousands of businesses and millions of jobs. These expansive multi-jurisdictional backyards are the economic lifeblood of hundreds of interconnected communities and their respective economic backyards. Economic backyards from Everett to Seattle, Seattle to Suquamish, Suquamish to Bremerton, and Bremerton to Tacoma comprise our regional economy.

This regional economy is a federally designated Economic Development District (EDD) for the Central Puget Sound region covering Snohomish, King, Kitsap and Pierce counties. The EDD is governed by representatives from private businesses, local governments, tribes and NGOs. Poulsbo City Council member Ed Stern just completed a two-year term as chair of the EDD board, and former Kitsap County Commissioner Josh Brown leads the EDD staff in his capacity as executive director of the Puget Sound Regional Council of Governments (PSRC). Other EDD board members from Kitsap County include: Cary Bozeman, Leonard Forsman, Charlotte Garrido, Capt. Mark Geronime, Patty Lent and David Mitchell. Alternates include: Kathy Cocus, Dino Davis, Pat Iolavera, Russell Steele, Larry Stokes, Axel Strakeljahn and Ed Wolfe. Along with Ed Stern, I serve on the executive committee of the EDD. Our EDD regional economy is home to 3.9 million people, 2.1 million jobs, and tens of thousands of employers. It is a regional economy known around the

People in Business Peninsula Credit Union hires new Poulsbo branch manager Peninsula Credit Union has hired Jessica Courter as the branch manager in Poulsbo. She brings nine years of credit union experience, most recently serving as the assistant call center manager at Kitsap Jessica Courter Credit Union. Courter is a lifelong resident of the Kitsap Peninsula who was a

high school intern for a local credit union, and she looks forward to continuing to work within the community. Peninsula Credit Union, based in Shelton, is a $150 million federally chartered credit union with 18,000 members in five Western Washington counties.

KEDA honors Port Madison Enterprises CEO with special award The Kitsap Economic Development Alliance Annual Meeting included presentation of a Life-

On Kitsap! • John Powers is executive director of Kitsap Economic Development Alliance.

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| May 2016 |

People in Business Kitsap Bank promotes 10-year employee to executive position

Two architects join Rice Fergus Miller staff in Bremerton

Kitsap Bank announced the promotion of Robert Banks to Senior Vice President & Credit Administrator. He will be Robert Banks based out of the Bremerton office at Sixth Street and Paciﬁc Avenue, where he will manage a team of six credit officers and analysts, along with the SBA credit officer located in Bellevue. Banks has more than 30 years of commercial banking experience and joined Port Orchardbased Kitsap Bank in 2006. He most recently worked in Gig Harbor as the Pierce County regional market manager. Banks is a graduate of the University of Washington and the Paciﬁc Coast Banking School at the University of Washington.

Rice Fergus Miller, a 43-person architecture, interior design and planning firm, has added two architects. Kristen Linn enjoys adaptive re-use projects and will contribute to the ﬁrm’s community and Kristen Linn housing projects. Rachelle Freegard has over 25 years of experience in a broad range of project types. She will focus on project management for Rachelle Freegard the firm’s community, civic and housing projects. Rice Fergus Miller (www.rfmarch.com) is located in downtown Bremerton.

Banking veteran hired as credit analyst at Liberty Bay Bank

West Hills auto technician is national champ

Dorothy Haffey-Shoecraft has joined Liberty Bay Bank in Poulsbo as a credit analyst assessing client financial statements and credit viability. She brings nearly 30 years of banking and financial services experience to Dorothy her role, having Haffey-Shoecraft worked in variety of banking roles in Tacoma and greater Seattle. Shoecraft graduated from Missoula College in Montana with a Certificate in Accounting and Bookkeeping, and has since completed numerous banking industry training courses in compliance, financial analysis, cash flow and underwriting. “I am pleased to be working closer to home with the opportunity to build business relationships in the regional community,” says Shoecraft, who has lived in Silverdale for the last 15 years.

Mike Schurosky, a Mazda technician at West Hills Ford in Bremerton, won the 2015 North American Master Technician Competition in California. Schurosky was one of eight ﬁnalists to advance from regional competitions, where technicians identify and repair a Mazda in a two-hour time frame. He will now travel to Japan in 2017 for the World’s Master Technician Competition. Schurosky has been a Mazda master technician since 2012, and he attended Olympic College.

Kitsap Humane Society adds two new staff positions Kitsap Humane Society (KHS) recently added two new positions to its organization. Sarah Moody-Cook is now serving as assistant director of animal welfare and will focus on expanding the shelter’s community and life-saving programs. A longtime

BUSINESS COMMENTARY | DON BRUNELL

Kirk Adams taking his skills to the Big Apple

irk Adams has earned the reputation as a visionary leader who gets things done for people with disabilities. Those qualities coupled with hard work and determination rewarded him with the nation’s top job advocating for the blind. In May, Adams, who grew up in Snohomish, becomes only the sixth American Foundation for the Blind (AFB) president since the nonproﬁt was formed in 1921. It is the organization where the legendary Hellen Keller’s archives reside. Carl R. Augusto, retiring AFB president, calls Adams “a brilliant strategist” and someone he has admired over his 25 years as CEO. So the Adams family is moving to New York City, the “Big Apple.” Following in the footsteps of

long-time successful CEOs is not new for Adams, who has been blind since he was 5 years old. In 2008, the Seattle-based Lighthouse for the Blind reached into its own ranks and selected Adams to succeed George Jacobson, who retired after 29 years as CEO. In his eight years at the helm, Adams expanded Lighthouse services to 11 different locations across America, along with Seattle and Spokane. It focuses on providing jobs, skills training and self-sufficiency for the blind, people with severe visual impairments, and those who are both deaf and blind. Finding work for people with disabilities is a challenge. Last September, the U.S. Dept. of Labor reported of the nearly 4 million people who reported blindness or serious difficulty seeing, approximately 3 million were identiﬁed as “not in the labor force.” This means that ap-

proximately 75 percent of people who are blind or whose vision is impaired even when wearing glasses were not counted in the jobless statistics and do not receive jobless benefits. The problem is more acute for people who are both deaf and blind. That worries Adams, whose goal is to provide employment through on-the-job training programs that help the blind obtain outside employment so that they can live self-sufficient and productive lives. As for pay and benefits, Lighthouse pays competitive wages based on annual surveys of pay rates throughout the Puget Sound for similar jobs. The good news is each worker earns a comparable rate to what someone in the same position earns at another company or nonprofit. You may be surprised to learn what people who are blind and

blind-deaf accomplish. For example, Lighthouse has been a Boeing parts supplier since 1951. Today, its machinists use a wide of variety of accessible technology: 3-D blueprints, digital gauges, adaptive technology and voice-interactive machines, digital screen reading software and digital displays, to make sophisticated parts for Boeing. Under Adams’ leadership, Lighthouse became an AS9100and ISO 2001:9000-certified manufacturer, which qualiﬁes its machinists to attract highly technical and precision manufacturing product contracts. The bottom line is Lighthouse workers are highly trained, extremely productive and can compete with the best. The Association of Washington Business honored Lighthouse with the 2015 Manufacturer of the Year for Operational Excellence. As an aerospace and mili-

KHS employee who began at KHS as a volunteer in 2002, Cook has been the organization’s volunteer coordinator beginning in 2013. Dr. Nick Urbanek joined the KHS team as its second full-time veterinarian, working under director of medical services Dr. Jen Stonequist. Urbanek received his veterinary degree from the University of Glasgow, and has been practicing in the United States for the last few years. He has had experience as a small animal practitioner and more recently in shelter medicine, coming to KHS from Seattle Humane Society. These new positions come at a crucial time for the organization as it is experiencing signiﬁcant growth. The number of animals coming into the shelter has risen over 30 percent and animal adoptions have increased by 39 percent over the past two years. Kitsap Humane Society (kitsap-humane.org) is a private, nonproﬁt, charitable organization that has been caring for animals in need since 1908.

tary supplier, its products have a 99.95 percent quality acceptance rating and a 99.76 percent on-time delivery rating. Adams inherits a much larger organization. The American Foundation for the Blind (AFB) is a leader in expanding opportunities and breaking down barriers for the more than 20 million Americans living with vision loss. Adams is highly motivated, determined and smart. Any blind person who can climb Mt. Rainier with the legendary Jim Whittaker, make the high school wrestling team, ski, and is a Phi Beta Kappa graduate in economics from Whitman College has what it takes to overcome whatever challenge is in his path. Kirk Adams is a caring and engaging leader with very special talents. We’ll miss him. • Don C. Brunell is a business analyst, writer and columnist. He retired as president of the Association of Washington Business, and now lives in Vancouver. He can be contacted at theBrunells@msn. com.

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