Kitsap Peninsula Business Journal 24/10

October 2011 Vol. 24 No. 10

The Voice of Kitsap Business since 1988

Harrison Partners with YMCA Harrison operates a health and wellness center at Silverdale Y

By Rodika Tollefson David George has tried various exercise programs over the years but for the past month or so, his new routine has improved his everyday living with COPD. The 68year-old Bremerton resident has been developing new breathing techniques and building up his stamina, and has already noticed a difference when he’s outdoors fishing or performing daily tasks.

“My everyday life is better and it’s easier for me to walk and to breathe,” he said.

George has been coming in three times a week to the newly open Haselwood Family YMCA in Silverdale, working up his endurance on a bicycle and other machines under the guidance of clinical coach Aaron Norton. And while he blends in with all the other Y members trying to get in some exercise, George is actually a Phase-3 cardiopulmonary rehabilitation patient at Harrison Medical Center.

Harrison Medical Center operates a health and wellness center at the Y, offering services to its patients, Y members and the general public. In addition to Phase-3 rehab (L-R) YMCA Executive Director Geoff Ball and Harrison Medical Center CEO, President Scott Bosch

Cover Story , page 4 $1.50 Display until November 1st

Inside Special Reports: Healthcare Quarterly, pp 6-13 Building Wealth, pp 14-18

Real Estate, pp 23-25 Human Resources, pg 28 Technology, pg 31 Environment, pg 33 Automotive, pp 34, 35 Editorial, pp 36-38

Port Orchard Chamber, pg 32 Home Builders Newsletter, pp 19-22

Hayes joins Snuffin’s Catering as director of Catering Sales & Operations Sharon Snuffin, owner and president of Snuffin’s Catering, announced the addition of Marnie Hayes as the new director of Catering Sales and Operation. She bring over 15 years of experience in catering management to the position and will be concentrating her efforts on developing new areas of corporate catering in the South Puget Sound area.

West Sound Workforce honors Employee of the Month West Sound Workforce has honored Melissa Meyer as the August Employee of the Month.

According to her supervisor... “Melissa’s performance is outstanding. She is easy to train, a quick learner and has proven to be punctual, as well as very flexible when we have a variety of shifts that need to be worked. Melissa is professional to her co-workers as well as the guests that she assists.” Meyer was honored by West Sound Workforce with gifts, an award certificate and floral arrangement at her local awards celebration.

West Sound Workforce can be reached at (253) 853-3633 or on the web at www.westsoundworkforce.com.

Streissguth joins Harrison Medical Center board Linda Streissguth joined Harrison Medical Center’s board of directors in August, bringing a vibrant background of community service experience.

She has built a strong reputation meeting the needs of customers, communities and commerce interests throughout Kitsap and surrounding counties. She’s the former chair and a current member of the city of Bremerton Planning Commission, vice chair of the Bremerton Housing Authority board of commissioners and a board member of the Jefferson County Chamber of Commerce.

Streissguth, a Bremerton resident, currently serves as the manager of Local Government and Community Relations at Puget Sound Energy. She’s been with PSE and its predecessor, Puget Sound Power & Light , for 30 years, involved with marketing, conservation, real estate, land planning and community services.

Children’s author hired as librarian at the Island School

2 Kitsap Peninsula Business Journal•KPBJ.com October 2011

George Shannon is the new librarian at The Island School on Bainbridge Island. Shannon is an author who has published 40 books, including 30 popular picture books. He has taught a number of writing workshops, is a professional storyteller, and received the “Lifetime Achievement Award” from the Pacific Northwest Writers Association. He has a B.S. degree in Education and Library Science, and also has a M.S.L.S. degree in Children’s Literature and Children’s Services. He served as a children’s librarian at an elementary school and a public library in Kentucky.

Counselor relocates offices to Silverdale Lou-Ann Lauborough has moved her counseling office from Poulsbo to Silverdale.

The new address is 8987 McConnell Ave. NW, Silverdale. She also continues to have her primary counseling and business office at 1730 Pottery Avenue, Suite 120 in Port Orchard.

Lauborough is a Licensed Independent Clinical Social Worker with 24 years experience with specialties in geriatrics, disabilities, grief and loss, stress, caregiver issues, and depression. In addition to two office locations, she also offers home visits to homebound clients. She accepts Medicare and most insurance.

To schedule an appointment, call (360) 876-5483, ext. 1; or email to louann@lauborough-counseling.com.

A&C’s Diner and Bakery opens in East Bremerton A&C’s Diner and Bakery — a ‘50s–‘70s car-themed, family-oriented, and family-owned diner, has opened for business at 3561 Wheaton Way in East Bremerton, which is near Value Village. The diner is open from Tuesday – Saturday from 8 a.m. to 8 p.m., and on Sunday from 8 a.m. to 4 p.m., serving breakfast, fresh baked pastries and desserts, burgers, hot and cold sandwiches, soups and salads, pasta dishes and many sides/appetizers. It offers daily specials and has a banquet/meeting room for parties or events, with special platters are available. The diner can be reached at (360) 479-1223.

Benchmark Automotive & Tire in Kingston presenting car-care seminar Hockett & Olsen Automotive, in conjunction with Benchmark Automotive & Tire in Kingston, is providing a fun forum to learn some practical vehicle maintenance advice for busy drivers. This particular seminar will be focused to help scouts earn a merit badge. The girl Scouts call it the Car Sense badge. As part of the AC Delco “Knowledge is Power” program, this free seminar, to be held Oct. 22 at 1278 Ferncliff Avenue (times vary depending on reservations), is designed to better acquaint busy drivers with vehicle maintenance needs and provide the information required to take charge of vehicle service needs with knowledge and confidence.

The “Knowledge is Power” seminar covers everything from how to sense potential problems under the hood to tips on how to communicate effectively with the service consultant. Registration is required. For more information or to register, contact Hockett & Olsen at (206) 842-2484.

Local photographer opening studio in Silverdale Laura Zander, of Add to Heart Photography, announces the opening of a photography studio in Old Town Silverdale.

“I am very excited to have the option of this beautifully lit studio space year round, in addition to offering on-location sessions,” said Zander. “Being right by the waterfront in Old Town Silverdale is an ideal location offering a great environment to photograph in the surrounding areas or within the studio.”

The space is a natural light studio for maternity and newborn, as well as limited boudoir and portrait sessions. The studio will also serve as a gallery showcasing a variety of canvas wraps, product samples and custom designed albums. There is a dedicated viewing area to meet with clients with the option of in-person viewing and ordering. Visit the online portfolio at www.addtoheart.com.

Add to Heart Photography is by appointment only, located at 3475 NW Byron Street in Silverdale. For more information, contact Zander at (360) 434-5937 or via e-mail at laura@addtoheart.com.

Fuchsia Fox Artful Design offers design and fine art

Historical Museum hosting Macomber book signing

Fuchsia Fox Artful Design is a new Indianola graphic design studio with 17 years of experience specializing in visual solutions to communication, marketing and branding needs ranging from intrinsic print materials to comprehensive environmental graphic sign systems.

Services include visual identities/logos, marketing materials, promotional mailers, invitations, announcements, event T-shirt design, poster design and environmental graphics/signage Commissioned fine art such as custom paintings, illustrations and sketches are also available. Hourly and flat rates are offered depending on the specific needs of the project.

Reach Fuchsia Fox Artful Design at (206) 779-3503, cr@fuchsiafoxdesign.com or www.fuchsiafoxdesign.com.

Debbie Macomber will be signing her latest book, “1105 Yakima Street,” at the Kitsap County Historical Society Museum on Friday, Oct. 7 from 5:30 – 7:30 p.m. The Museum is located at 280 4th Street in downtown Bremerton. Copies of the book will be available for purchase at the signing.

This event is a fundraiser for the Historical Society and is free to the public.

“1105 Yakima Street” is the 11th book in the popular Cedar Cove series which started more than a decade ago with “16 Lighthouse Road.” The community of Cedar Cove is loosely based on Port Orchard.

For more information reach the Kitsap County Historical Museum at (360) 4796226; info@kitsaphistory.org or on the web at www.kitsaphistory.org.

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In an effort to promote wellness and disease prevention to the senior community members, Silverdale Fitness will began offering SilverSneakers Fitness Program on Sept. 1.

SilverSneakers is the nation’s leading social support and exercise program designed to improve seniors’ well-being and health. This program partners with several major health plans across the United States to deliver the SilverSneakers Fitness Program to its Medicare group retiree members at no additional cost. This program is much more than just a “free gym membership,” the SilverSneakers Fitness Program is a unique exercise and sociallyoriented program designed to encourage older adults to increase their levels of physical activity and motivate them to continue to exercise.

“We are very excited to finally be able to offer this program to our seniors; we will be adding more classes to our already existing programs to give our seniors the quality of life as well as the quantity of life they deserve,” said Manager Stephanie Smith. To enroll, or for more information, call (360) 698- 2264.

Local gourmet popcorn maker goes to the Emmys Local gourmet popcorn was among the goodies News & Documentary Emmy Awards VIPs took home Some participants in the 32nd Annual News & Documentary Emmy Awards walked away with prestigious trophies — but all the VIPs got to take home a taste of Washington State. Bainbridge Island-based Popcorn Chef was among 30 businesses selected to provide products for the official gift bags to the 800 VIPs at this year’s event.

Hosted at the Time Warner Center in New York City, the News & Documentary Emmy Awards included celebrities, television personalities and media stars among its guests. Larry King received the prestigious Lifetime Achievement Award, and all those in attendance — including some of television and Internet media’s most influential people — received official Emmy gift bags with items ranging from jewelry and candles to stationery and pet products.

For Popcorn Chef Owner Doña Keating, large orders to be shipped all over the world are not an unusual request. But when she was approached by Off the Wall Ideas, the provider of the bags for the National Academy of Television Arts & Sciences, she recognized the opportunity to increase this niche.

“We receive quite a few emails from different entities and some of them are just starting out, so we investigated to ensure it was a legitimate invitation,” she said. “I thought it would be fun to do — we’ve had

a few things sent out to celebrities in the past and received highly positive feedback.”

She liked the fact that Off the Wall Ideas, which is headquartered in New Hampshire, was especially looking to promote small businesses. The mission of the nonprofit National Academy of Television Arts & Sciences, to advance the arts and sciences of telecommunication and foster leadership in the industry was also an attractive cause.

Val Wilson, producer of the Official Emmy Gift Bags, said a team of researchers

You’re Invited — Save the Date

“Celebrating the Success of Kitsap Entrepreneurs” 4 Kitsap Peninsula Business Journal•KPBJ.com October 2011

Have you heard about the Washington CASH entrepreneurs who have started hundred of businesses in Kitsap???

Meet them in person at their 2nd Annual Showcase — see their products and services, taste their wares, hear them make music and listen to inspiring stories.

Thursday, October 20th from 5–8 p.m.

Communitas Building 920 Park (at 11th Street) in Bremerton Washington Community Alliance for Self-Help empowers aspiring entrepreneurs with limited resources — and unlimited potential.

Learn more at www.washingtoncash.org

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looks up potential businesses in specific categories, which include gourmet foods.

“Popcorn Chef had a nice website,” said Wilson, who owns Off the Wall with her husband, Mike. “The flavors looked delightful.”

Popcorn Chef has nearly two dozen sweet and savory flavors including such enticing choices as Butterscotch Heaven, Spicy Southwestern Cheddar, and Dark Chocolate with Chipotle, Cayenne & White Truffle Oil. It didn’t take long for Keating to decide what treats to provide for the VIPs. She created a new mix, appropriately called “Emmy Medley,” with four popular flavors that complement each other: White Cheddar with Cracked Black Pepper and Bleu Cheese, Dark Chocolate with Alder-Smoked Sea Salt, Baked Caramel, and Golden Cheddar.

“The biggest challenge is the labor involved,” said Keating, who frequently recruits her husband, Charles, and other friends or family members to help out. “We decided to do something different and use packages larger than our sample size but smaller than our small bags. It’s more labor intensive to put our products in small packages, label them and so on.”

The other challenge was the fast turnaround. Keating and crew only had days to prepare the goodies, which had to arrive in New York by Sept. 22. That means her company had to go into high gear for this production, while working to fill other orders and tending to the other businesses the couple own (including corporate consulting).

For Keating, however, the endeavor was well worth it. It was only six years ago when she launched Popcorn Chef. Since then, the business has blossomed to include corporate clients and fans all over the world.

“What I appreciated about this opportunity is that we’ve gotten to the point where we’re being sought out. It’s a nice turning point,” she said. “So many business fail within five years, particularly in this economy. To be going strong in our sixth year and be invited to the Emmys is quite rewarding, as is the opportunity to again show the world the wonderful things going on here.”

PopcornChef.com ships made-to-order popcorn internationally. It offers corporate gifts, fundraisers, private parties, and its products include quality organic ingredients.

Technology Energy Savings & The Internet For Your Business

Hoover Kia is now Hoover Motors After 23 years as a new car dealer, Kitsap automovie industry icon Martin Hoover has sold his Kia dealership at the Bremerton Auto Mall to the Haselwood Auto Group, and gone independent. His new dealership is is now Hoover Motors, and specializes in all makes and models of pre-owned vehicles, with full sales, service, parts and detail departments for any automotive need.

Hoover Motors will also offer multiple financing options for all credit customers.

All vehicles are fully serviced, detailed, and ready for many miles driving.

Hoover, who previously was a longtime General Motors dealer, selling Cadillacs, and Oldsmibilesin addition to Kia, welcomes all the Kia. Oldsmobile and Cadillac customers he’s done business with over the many years he’s been in business to stop by and check out his new venture.

The service department is still staffed with factory trained, ASE certified technicians and will continue to use only the best parts.

According to Hoover, the dealership is currently stocking nearly a million dollars worth of inventory on a nearly three acre facility and can be reached at (360) 377-5522, email, at sales@hoovermotors.com, and service@hoovermotors.com or by visiting www.hoovermotors.com.

Boys & Girls Clubs name new marketing VP The Boys & Girls Clubs of South Puget Sound (BGCSPS) has announced the selection of Larry Bleich as the vice president of Resource Development and Marketing.

Bleich is filling a new position and will be responsible for building the organization’s resource development capacity as a wellintegrated team of staff and board members.

Bleich has extensive experience in both for profit and not for profit organizations; he was the senior vice president of Marketing and Development for the Boys & Girls Clubs of Greater Scottsdale — a large metro Club with 9 branches and similar in size and budget to the Boys & Girls Clubs of South Puget Sound.

The BGCSPS had a diverse interview and selection team comprised of board members and staff, who were all impressed with Bleich’s personal skills, knowledge and results in development and marketing.

Bleich’s role will permit restructuring of responsibilities to allow Mark Starnes, president and CEO, more time to spend with board members and major donors.

Bleich will lead the development and marketing staff.

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Bainbridge Chamber hires ex-North Mason Chamber CEO Frank Kenny

Naval Base Kitsap wins dueling chefs competition The Bremerton Party, which was held on Sept. 17 at the Kitsap Conference Center, benefitted the Bremerton Foodline and the charitable projects of the East Bremerton Rotary.

The party featured “bites” from many area restaurants. Amy’s on the Bay, which is located on the Port Orchard waterfront, was awarded Best of the Bremerton Party by party goers, who voted throughout the evening.

Participating restaurants included: Bella Bella Cupcakes, McCloud’s Grill House and Saloon, The Boat Shed, Bremerton Health and Rehabilitation Center, Amy’s on the Bay, Going Out Daily Changing Lives Lifestyle Cooking Academy and Olympic College Culinary Arts Program.

A Dueling Chefs Competition was also held. The Chefs were given four main ingredients commonly available to Bremerton Foodline clients. The chefs were scored on presentation, taste and general appeal of their dishes. Mayor Patty Lent and Kim Faulkner, president of the Board of Directors of the Bremerton Foodline were the judges and the winner was Naval Base Kitsap.

Management Team of Port Orchard’s Amy’s on the Bay restaurant

October 2011 Kitsap Peninsula Business Journal•KPBJ.com 5

The Bainbridge Island Chamber of Commerce has retained Frank Kenny as an interim executive director for the next three months. Kenny, who will work on a part-time consultant basis, will help the chamber create its new vision/direction as well as recruit a new executive director, following the departure of longtime Executive Director Kevin Dwyer. Kenny will also fill in as the interim executive director.

Jeff Waite, who became president in August, said the chamber is taking advantage of the transition to evaluate its strengths and role in the community. He said the results of a membership survey conducted in July were similar to others done around the state, showing that economic development, business networking and business advocacy are traditional areas of focus for chambers.

“Our new direction remains to be seen.

We just started this work so we’re looking for a great deal of help from Frank with this new direction and defining what the chamber is going to do,” he said. “…The board is really excited that Frank is available. (Exploring a new direction) is something the board has talked about doing for some time.”

Kenny was the executive director and CEO of North Mason Chamber of Commerce, based in Belfair, for about four years. Last August, he left his post to embark on a national tour of speaking at various chambers on the topic of social media. He has been building his reputation as an expert in growing chamber membership using social networking tools, and for the past year has expanded his expertise.

Kenny is also the author of the newly published book , “The 7 Secret Laws of Society: Social Media Essentials & Strategies for Small Business and Associations.” He plans to temporarily relocate to the island while serving in his new capacity, and plans to continue his other work as consultant for various businesses and organizations as well.

His background includes being the former chair of the Chamber Division of the Association of Washington Business and former Washington State Chamber of Commerce Executives board member. He has an MBA degree and is a graduate of the Western Association of Chamber Executives Academy program, as well as a faculty member of the U.S. Chamber of Commerce Institute of Organization Management program.

Kenny said when he was approached by the Bainbridge Island Chamber of Commerce about the possibility; he was excited at the opportunity to help develop a new direction and help recruit someone to implement it.

He started in his new role on Sept. 1 and said he plans to tap into his statewide and nationwide chamber network during the recruitment process. His role will be to make recommendations to the board, which will have the final decision.

Amy’s on the Bay voted Best of Bremerton Party

GPS technology used to treat prostate cancer at St. Anthony Hospital Radiation oncologists at the Jane Thompson Russell Cancer Care Center at St. Anthony Hospital in Gig Harbor now use GPS-like technology to provide prostate cancer patients the breakthrough benefits of real-time tumor tracking during radiation therapy.

The technology, called GPS for the Body, allows higher doses of beam radiation to be directed at the tumor with increased accuracy while decreasing risks for exposing healthy tissue and organs to radiation.

“We are committed to providing our patients with state-of-the-art treatments that maintain or improve quality of life,” said radiation oncologist Kenneth Bergman, MD. The Jane Thompson Russell Cancer Care Center added the innovative prostate cancer therapy in May 2011. The outpatient cancer center is a partnership between the Franciscan Health System, St. Anthony Hospital, Peninsula Radiation Oncology and Northwest Medical Specialties.

Prostate cancer is among the many types

of cancer treated at the center. Prostate cancer is second only to lung cancer as the leading cause of cancer-related deaths in men, according to the American Cancer Society.

The goal of external beam radiation therapy is to focus the radiation beam on the tumor while avoiding the irradiation of surrounding healthy tissue that can result in serious side effects like sexual dysfunction.

However, internal organ movement, which naturally occurs as part of normal body functions such as digestion and breathing,

may cause radiation beams to miss the intended target.

“Like many of the organs in our body, the prostate gland is constantly moving,” Bergman said. “With precision targeting, extremely accurate radiation can be delivered directly to the tumor while minimizing the risk of any harmful effects on normal tissues. By doing so, we are likely to reduce side effects.”

Key features of the Calypso Medical system are three electromagnetic transponders, each the size of a grain of rice, implanted in the prostate before radiation therapy begins. These serve as beacons that continuously monitor the tumor’s location during radiation therapy.

Bergman and his team can see immediately whether the radiation beam is off track and then make adjustments or reposition the patient as needed to ensure delivery of radiation with pinpoint accuracy.

“Prostate motion is unpredictable and variable, based on breathing and filling of the bladder and bowels,” Bergman said.

“During treatment, it may shift several millimeters as the patient breathes or coughs.”

A clinical study published May 2010 in the medical journal Urology concluded that GPS technology reduces urinary, bowel and sexual dysfunction side-effects that are common with prostate cancer radiation therapy. The technology is similar to the global positioning system technology used in many vehicles and cell phones.

Historically, radiation oncologists have used several methods to localize a tumor and limit organ motion during radiation therapy, such as keeping the patient immobile. Older localization methods – which used implanted gold markers and Xray images or ultrasound scans – image the tumor before each radiation session. None has the precision or immediacy of the GPS for the Body technology now used at the Jane Thompson Russell Cancer Care Center.

For more information about the Jane Thompson Russell Cancer Care Center, go to www.gigharborcancercare.org.

6 Kitsap Peninsula Business Journal•KPBJ.com October 2011

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Harrison cardiothoracic rated top in Washington Harrison HealthPartners Bremerton Cardiothoracic Surgery was ranked as the No. 1 heart surgery group in Washington by Consumer Reports magazine. The ranking, published in the September edition, was based on the three-star rating the group received from the Society of Thoracic Surgeons (STS), the highest rating available.

STS tracks data from about 90 percent of the approximately 1,100 groups that perform cardiac services in the United States. Harrison Health Partners was the only heart surgery group in Washington state to receive, for the past two years, the three-star rating, which is given based on quality measures, performance and complications.

Dr. Christopher King, one of the two cardiothoracic surgeons with the group, said being in the top 10 percentile in the country for two years in a row is due to having the right people at all levels, as well as having Harrison leaders buy into the concept of quality.

“The success comes from having the right people — we are all committed to doing heart surgery with compassion and skill,” said King, who joined Harrison eight years ago to develop the cardiac program.

“We provide care to the individual, and delivering care to the people in our community — including our friends and neighbors — keeps us accountable.”

When King came to Harrison eight year ago, the hospital did not perform heart surgery or heart catherization procedures.

Since then, the team has performed more than 1,400 open-heart surgeries and has been consistently rated by patients in the 99 percentile for satisfaction. During the first year of the program, the group had 110 cases and now the average is 250 cases per year.

“The complexity of care we provide has grown a great deal,” King said, noting that every patient is impacted by more than 100 professionals from different areas including nurses and ancillary service providers. “Our

strongest point is that we focus on quality of care and we measure the quality all the time… We like to be as good as we possibly can be for every patient we touch, and it takes the commitment of the entire team.”

Dr. William Reed, another veteran surgeon who joined Harrison Health Partners two years ago, also credits the team with the high quality of the service. “(The rating) is very significant at a number of levels. You have a group that’s achieving that kind of statistic in a community hospital… There’s a myth that you can only get good heart surgery in a

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Thermal Body Scan NW, Inc. conducts digital infrared thermal imaging know has thermography. Thermography is a noninvasive; FDA approved diagnostic technique that converts infrared radiation emitted from the skin surface into electrical impulses that are visualized in color. This screening technique is used to see changes in thermal activity in the body, particularly the breasts, to identify potential health issues.

Just as unique as a fingerprint, each patient has a particular infrared map of their body. The initial scans for the body and breasts are taken and after three months another scan is done. This establishes a baseline for each patient as well as seeing any changes occurring over time.

Studies have shown that when Thermography is added to a women's regular breast check-ups patients experience a 61 percent increased survival rate. Breast cancers in their earliest stages, as well as inflammatory breast cancers, may not be detected using mammography. Being able to see vascular changes in the breast tissue, in some cases years before a mammogram will detect the problem, allows for early detection and early detection can save lives.

Thermal Body Scan NW, Inc. opened its doors in September 2009 at the Acupuncture and Wellness Center building in Poulsbo on the corner of 8th Ave. and NE Hostmark Street. Debby DeMartini is a certified clinical thermographer and conducts digital infrared thermal imaging and can be reached at (360) 930-1954.

teaching hospital and this dispels that myth,” he said.

He said the high quality of services also requires the financial commitment of Harrison Medical Center to invest into equipment and other needs.

“It’s a big commitment for Harrison to accommodate a big need in the community,” he said. “…The money, running the facilities well, hiring the right people is the key. It requires a lot of efforts from many people providing the support and the system in place, and that’s what those ratings are about.”

MultiCare Regional Cancer Center receives innovation award MultiCare Regional Cancer Center recently received the 2011 Innovation Award for improving the patient experience from the Association of Community Cancer Centers.

The Association of Community Cancer Centers Innovation Award honors programs that exhibit forward-thinking strategic planning and develop pioneering programs and tools.

MultiCare Regional Cancer Center was recognized for bringing cancer care to communities in the South Sound including Gig Harbor, expanding from 25 treatment chairs at two locations to 90 chairs at five locations. The center also added technology that makes treatment and office visits more relaxing and developed a partnership with the Seattle Cancer Care Alliance.

“We have worked hard to bring the best experience to our patients during their cancer treatment. This award honors our com mitment to creating a relaxing, supportive environment that also gives patients and their families the best treatment options close to home,” said David Nicewonger, administrator of the MultiCare Regional Cancer Center.

During the last three years, the Tacoma-

based health care system made several improvements to the patient experience, including adding an audio-visual system at each chemotherapy chair gives the patient access to television, radio, movies, electronic books, games and full Internet capabilities.

Patients also have access to their medical record and can browse educational materials.

The system is currently available at the Tacoma General, Auburn and Puyallup locations, with plan to add them to the other campuses as funding allows. Due to the unique nature of the technology, it is only availab le from two vendors worldwide.

The touch-screen systems replace the one or two big screens that hang from the ceiling and are used by all the patients.

Instead, each patient has a console with headphones and combines television, radio, Internet access and games.

“It keeps everything calm (due to the headphones) and patients can customize everything,” Nicewonger said, adding that some patients have used the console to pay bills or shop at eBay. Other improvements included equipping all examination and counseling rooms with wall-mounted 42-inch monitors. The monitors show digital art but on demand

8 Kitsap Peninsula Business Journal•KPBJ.com October 2011

W E3D Breast Imaging at AMI N

from the care provider, they can mirror information pulled from the room’s computer workstation. Digital images of MRI, PET, CT or other images can be displayed in large view. The screens also are used to show educational information the provider may want to share with the patient and family.

Additionally, two 55-inch televisions sitting side-by-side in the waiting room replace the traditional aquarium. They show continuous high-definition video of nature scenes from around the world — an answer to patient requests to remove the traditional aquarium.

“The changes and improvements came about because of patients. When we started planning the expansion, we sat down with a group of patients and asked them what was working well and what wasn’t in their environment,” Nicewonger said.

Community-based care was another area of recognition for the award. The MultiCare Regional Cancer Center provides services at five medical oncology sites instead of a more common central location. This model provides easier access to a larger geographic community and minimizes driving time for patients. All sites are linked by a common

electronic health record and uniform policies and practices. This model allowed the expansion from 25 chemotherapy chairs in two locations to 90 chairs in five locations; doubled the number of patients served and increased access to social workers, navigators, nutritionists and financial support.

Through an affiliation relationship with the Seattle Cancer Care Alliance, MultiCare is also able to provide the latest treatments for patients in their local communities.

Clinical trial opportunities are expanded to each of the MultiCare facilities and made available to patients without patients leaving the area, and patients can consult with highend specialists but still be treated near home.

The cancer center also uses teleconference links to the Seattle Cancer Care Alliance and community locations to provide access for patients to educational conferences and to the expertise of multidisciplinary specialists.

MultiCare will receive the Innovation Award in October at the Association of Community Cancer Center's (ACCC) 28th National Oncology Conference, where the Association will present its first annual ACCC Innovator Awards.

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New Harrison Foundation guild supports medical needs Instead, the events will be organized by the guilds, which received complete administrative support from the foundation so they don’t have to focus on fiduciary and governing matters.

Cline said that’s a win-win, because the foundation can use its expertise in those areas to support the guild, while being able to focus its own efforts on othe r fundraising avenues.

“This model helps the partnership get the best of both worlds,” she said.

Cline said the next goal for the foundation is to develop a network of

supporters who can give at any level.

“Because the hospital is such a big entity, people often erroneously think their contribution doesn’t make a difference,” she said. “…Another misconception is that to be part of the Harrison family, you hav e to be a big donor. Our goal is to get a large group of people who value the hospital to demonstrate it through their charitable giving, at whatever level they can.”

Last year, the foundation raised close to $1 million, contributing $440,000 in support to the hospital. Because

Harrison Medical Center has a three percent operating margin and only a 33 or 34 percent realization rate (actual money received for services billed), it would have had to bill $45 million and collect $14.7 million to realize the same $440,000. “ W hen you give $1 to the foundation, it’s worth $33 in terms of revenue and $102 in services we charged for,” Cline said. “It’s significant.”

For more information about Harrison Foundation or Angie Harrison Memorial Guild, go to www.harrisonmedical.org/giving.

October 2011 Kitsap Peninsula Business Journal•KPBJ.com 9

By Rodika Tollefson Harrison Medical Center’s newest guild is gearing up for purchasing new equipment and furnishings for the intensive care unit at the Bremerton hospital. The Angie Harrison Memorial Guild, founded last year, hosted its first major fundraiser on Sept. 30 with the goal of raising $20,000.

The event, called A Luncheon to Celebrate Women, included live and silent auctions and speaker Pat Wright from the Total Experience Gospel Choir. The luncheon has been an annual affair for the Harrison Medical Foundation, the guild’s umbrella organization, and the guild stepped in to take it over as its signature event.

Susan Phillips, president of the Angie Harrison Memorial Guild, said the guild has been focused on organizing for the past year but after the luncheon, the effort to recruit new members will kick into high gear with a membership drive. So far, 26 women came on board as members, and Phillips said the goal is to recruit another 15 in October.

“Most of the women didn’t know each other so they got to meet new people,” she said. “They feel good about themselves by donating time and doing something meaningful for a cause.”

The group is the third guild under the Harrison Foundation’s 501(c) 3 umbrella. Phi llips, who works at Advanced Medical Imaging, was a member of Harrison’s Mathis Guild and decided to establish a new one after seeing that there was enough interest.

Membership is $20 a year, and members are expected to attend as many monthly meetings as possible, as well as help organize events.

The guild’s namesake, Angie Harrison, was a local schoolteacher who, along with her husband, Benjamin, was among the hospital’s earliest supporters. The couple gave land in the 1800s to build a hospital and continued to provide other support it.

Harrison Medical Center is named after them. The guild, in a way, continues Angie’s work — by raising funds and awareness for the community hospital.

“It helps bring awareness about the hospital’s needs and the value of giving charitably,” said Harrison Foundation Executive Director Stephanie Cline.

Cline said Harrison plans to add more guilds, with plans already under way to form another by the volunteers who’ve been involved in Festival of Trees, which is taking a bow after 25 years. The festival has been the biggest event fundraiser for the foundation, but Cline said smaller events are more effective because they don’t require such a large scale of production, and consequently have smaller overhead costs.

“We’re moving away from producing events as the main means of raising funds,” she said.

COVER STORY from page 1 (also available at the Bremerton Y), the wellness center offers a variety of massage therapies, physical and occupational therapies and nutritional services. Phase-3 Harrison patients can use the gym equipment and track at no charge during their 12-week program, while being monitored closely by medical staff.

“The nice thing about this facility is that it has such a variety of equipment,” said Norton, health and wellness coordinator for Harrison who works with Phase-3 patients

at both Y campuses. “…One of the most important things about the program is that I want to make it fun. If it’s not fun, they will not stay in it, so the choice (of equipment) is based on (patient) preference.”

George said since there’s no time limit to each session, he’s been trying to push himself harder every week.

“I haven’t considered myself a patient,” he said. “I’m an individual here to feel better.”

That idea of providing a non-clinical atmosphere is one of the goals behind the program, according to Harrison’s Business Development Manager Rhonda Brown.

10 Kitsap Peninsula Business Journal•KPBJ.com October 2011

Harrison health and wellness coordinator Aaron Norton monitors oxygen saturation levels for David George during an aerobic activity at the Haselwood Family YMCA. “There’s an energy you feel here. The environment allows you to feel you’re here to work out, you’re not a patient,” Brown said. “…We hope to help patients adopt a program to be more successful in maintaining a routine.”

Through the partnership, the Y waves the joining fee for Harrison patients who decide to become members after their rehab program ends. George has already contemplated the idea, and hopes to expand to other activities such as swimming and taking classes.

“Our hope is that Phase-3 patients will continue their exercise routine,” Brown said. “It’s a seamless transition from a Harrison patient at the Y to a Y member.”

The wellness center services are open both to Y members and the general public.

Massage therapy can be both doctorordered (and covered by insurance) or cash-based. Six treatment rooms include two for massage and one for nutritional counseling, and a range of equipment is available including a Pilates Reformer, used for occupational therapy or injury rehabilitation (as well as performance training by exercise studios).

Harrison also has access to the Y community room, which includes a teaching kitchen, and is developing a program for presentations and cooking demonstrations for heart-healthy living and other topics.

For Y members, having massage therapy and other services available on site is more than convenience — they also receive discounts and access to the educational programs that Harrison will offer.

“It’s a really neat partnership. The members like to see the relationship with the medical community,” said Haselwood Family YMCA Executive Director Geoff Ball. “…We’re finding more and more that a medical partnership for the YMCA helps build awareness for our members while also

giving them access to services.”

A similar partnership exists between the Y and MultiCare at the Gig Harbor Family YMCA, and Harrison staff developed its program based on some of the feedback received by the Gig Harbor facility. Prior to the Silverdale opening, Brown both became a member and a wellness center user at the Gig Harbor Y, and visited with MultiCare staff to learn what worked and what didn’t.

The design of the Silverdale wellness center — an open concept with the treatment rooms along the perimeter — was one of the aspects influenced by that feedback.

“They (MultiCare) have been a terrific partner. I learned what their barriers were and we adjusted our space,” she said. “Our business model is similar to their business model, which is successful for them now.

They’ve used several other platforms before this one, and they’ve been open (with us) about their challenges.”

In addition to collaborating with MultiCare, Brown visited the YMCA Healthy Living Center in Des Moines, Iowa for two days. The center uses a medically integrated approach with the help of both medical and fitness professionals.

“It was a great experience to be exposed to at that level of medical fitness,” she said.

“We were at the ‘what would we offer stage’ in building our program.”

The Y and Harrison Medical Center have signed a 10-year partnership agreement, and Brown said the plan is to introduce educational programs shortly and continue to grow them. In addition to Harrison, Mary Bridge Children’s Hospital will offer pediatric weight management services at the Silverdale Y as well, and was gearing up to move into a wellness center space early this fall.

“The Y has been a great partner,” Brown said. “I can’t say enough about that.”

Harrison’s Nuclear Medicine Department receives major upgrade “The sensibility of the camera is quite a bit more than a regular one. It has excellent resolution, even for heavier patients,” said Lisa Bartcher, a nuclear medicine technologist, adding that for bariatric patient, a regular camera would require a two-day study, but the D-SPECT camera can achieve the results in under three hours.

The laboratory room where the SPECT test is performed has been customized to improve the patient environment. A custom ceiling was added with unique art, and during the study the lights can be

dimmed and relaxing music played to make the patient more comfortable.

“Our in-patient volumes are lower in general but nuclear medicine has been steadily increasing,” Thompson said. “We’re getting more referrals from physicians (thanks to the new technology).”

Other recent upgrades in the medical imaging department included new echocardiography technology for threedimensional heart imaging, ultrasound equipment and CT scanner. Within the past year, the conversion of all X-ray rooms to digital has been also completed, with the

exception of one area. The imaging is fully integrated with electronic medical records, and physicians can even pull patients’ images on mobile devices such as iPhones.

One more addition is expected in September, a new CT scanner that will expand the imaging department’s capability for interventional procedures. The equipment will help with increased demand for intervention radiology procedures, Campbell said.

“More and more procedures that were done in surgery can now be done in imaging and don’t even require day surgery,” he said.

October 2011 Kitsap Peninsula Business Journal•KPBJ.com 11

By Rodika Tollefson Harrison Medical Center’s medical imaging department in Bremerton recently completed a major upgrade of its technology and a remodel of its space.

Earlier this year, a new nuclear medicine camera was added that reduces the amount of radiation exposure patients get during cardiac imaging. The imaging system, called D-SPECT, was purchased from Israel-based Spectrum Dynamics and is the only one available in Western Washington, and one of a few on the entire West Coast.

“The equipment has new technology that allows it to dramatically reduce the amount of radiation the patient receives and at the same time it reduces the amount of time the procedure takes,” said Bart Thompson, Harrison medical imaging manager.

The solid-state detector technology has been available for some time but has been cost-prohibitive, Thompson said. When Harrison was in the process of upgrading its imaging technology, it chose to invest into the more expensive equipment specifically with the goal of reducing radiation exposure, said Redge Campbell, director of medical imaging.

“Over the last five years, there has been a big push to upgrade all our equipment,” he said. “Now all but two of our rooms use the most current (technology) available that is rated the highest score… With the new camera, our goal was to identify equipment with the minimum radiation exposure and the decision was influenced by that.”

Nuclear cardiology creates threedimensional images of the heart and is frequently the first test performed for cardiac patients. Unlike imaging like Xrays, the machine doesn’t pass radiation through the body but rather uses radioactive material introduced into the body. A gamma camera then picks up the energy emitted by the material, which accumulates in the specific body part that is being imaged.

Radiation exposure from cardiac imaging, measured in mSv units, has an average nationwide estimate of 15.6 per test and can range from 10 to 30 mSv or more (the highest of all diagnostic tests).

According to Harrison officials, the DSPECT camera’s dose is at 4.37 mSv. (The typical average for a person in North America is 3 mSv per year from natural exposure, according to the World Nuclear Association.)

Thompson said many of the studies about radiation risks have been theoretical and based on data from events such as the bombing at Hiroshima and the Chernobyl nuclear disaster. “More and more evidence suggests that even at minimum levels, cumulatively it adds up over time,” he said.

“We try to keep radiation levels as low as we practically can.”

In addition to minimizing the exposure, the new camera also has much higher image quality and has better results in certain categories of patients, such as highrisk and bariatric.

Popularity of midwife services on the rise

12 Kitsap Peninsula Business Journal•KPBJ.com October 2011

By Rodika Tollefson After giving birth to her first child 11 years ago, Nikki Coraggio said she was convinced “there had to be a better way.” A pre-medical student at the time, she wasn’t sure what any other options may entail. But after moving to Washington state, she found the solution: midwife-assisted births.

“This is a more progressive state compared to others,” she said. “It’s licensed and regulated through the Department of Health, which helps to ensure there’s quality practice.”

This past January, the Gig Harbor resident (now a mother of four) opened her own practice called Gig Harbor Midwifery. She said being a midwife allows her, as the prenatal provider, to interact more with the expectant parents than physicians traditionally do. “This is a time that’s incredibly special for the families to be going through,” she said.

According to the American College of Nurse-Midwives, the number of births attended by certified midwives and certified nurse-midwives has risen every year in the United States. The latest available statistics show that 7.5 percent of all births and 11 percent of all vaginal births were attended by midwives in 2008, though the majority of those births were still in a hospital, with about 2 percent occurring at home and another 2 percent in a facility such as a birth center.

“Most people grow up with the idea of going to the hospital to give birth, and they may have gone and had that experience then looked for a midwife (the next time). But now, more are already thinking of that (alternative) before getting pregnant. Using midwives is becoming more common for first-time parents,” Coraggio said.

She thinks part of the trend is due to the rising popularity of “green living,” which is

focused on a natural lifestyle, but some is also due to increased visibility of midwifery. In a state like Washington, the practice of home births is especially more accepted since midwives are licensed and their services are covered by insurance plans, including Medicaid.

A 2008 study commissioned by the Washington State Department of Health estimated that licensed midwifery care resulted in $2.7 million savings to the healthcare system (the estimate was based only on costs of avoided C-sections and not the potential additional savings from avoiding other interventions). The cost is lower to the families as well due to lower facility fees (a birth center can cost as little as half a hospital stay and the home is free) and baby delivery fees.

The state requires midwives to complete three years in an accredited program, including participation in at least 100 births, before becoming licensed.

“I have access to a lot of the same tools as the physician and the same information,” Coraggio said.

A midwife provides prenatal care much the same way an obstetrician does. The women are prescreened first to make sure they are good candidates — midwives do not take high-risk pregnancies or women with medical problems who are more likely to have complications. The visits are generally longer and often also focus on emotional wellbeing and birth preparedness instead of only physical indicators. At least one visit is scheduled at the home, to make sure it’s appropriate. In Coraggio’s practice, she also does two postnatal visits at home including one within 24 hours of birth. She only accepts three new clients per month, devoting about a day and a

half to clinic hours every week.

Some women choose to use a birth center instead. In either setting, the midwives are ready with emergency equipment in case resuscitation is needed, and are also prepared to transport if the delivery is not progressing as desired.

A new birth center opened in Port Orchard in July after several years of planning, and has already received reservations for a few births.

The Poplar Heights Birth and Wellness Center includes two birthing rooms, a media/teaching room for classes and an office space where a certified nurse midwife will provide general women’s health care.

The non-profit center is the only independent birth center in the area, and currently has three licensed midwifes on board. The facility, which includes a full kitchen and waiting room for families, is equipped with an ultrasound as well as birth tubs, and could accommodate as many as a dozen births a month.

Corragio said a big difference with a nonhospital birth is that the women use other pain-coping mechanisms instead of medical interventions. But they still have a choice. “It’s not an all-or-nothing (arrangement),” she said.

“We can transfer to a hospital if the pain is too much.”

Kendra Machen, a certified childbirth educator and a midwife assistant, said paincoping techniques are one of the aspects the women can learn in childbirth classes. Machen also teaches hospital birth classes and she said in many respects, the classes are the same, but not when it comes to pain and comfort.

“You learn more about the fear-paintension circle. We rely heavily on learning to relax, change position, use different senses like heat and cold, guided imagery,” said Machen,

who is on the Poplar Heights board and one of the organizers.

She thinks the appeal of a midwife-assisted birth is different from woman to woman, but primary reasons include cost, comfort and privacy. Some women also feel safer at home and more respected. There has also been a growing trend of more Caesarian deliveries in hospitals so some women are looking at home births because they want to deliver naturally.

“When women can’t get what they want at a hospital and are becoming more educated, they want to go somewhere else,” she said. “…

I don’t think, in my heart, that going to the hospital is wrong or a midwife is always best— what we need is for women to have choices.”

New 3D technology offered at Advanced Medical Imaging New 3D technology is being incorporated into Advanced Medical Imaging’s (AMI) repertoire of diagnostic tools for diagnosing breast cancer at our Women’s Diagnostic Center in Silverdale. Shear-Wave 3D Elastography Breast Ultrasound performed during breast ultrasound is excellent when evaluating breast lesions and selecting patients who need a biopsy. This exam takes just two minutes, there is no radiation and it gives additional information about these breast lesions. It measures the tissue stiffness or resistance of the underlying tissue to compression. Cancer generally has greater stiffness on elastography. It is not very compressible. It looks different on elastography than benign breast tissue which is very compressible.

A real benefit of this technology is that it can help differentiate benign from malignant lesions. A lesion is measured on 2D ultrasound and again measured with elastography, and then compared. This technology is designed to reduce the number of patients undergoing unnecessary biopsies. Questionable lesions that would have been biopsied, can be shown to have low tissue stiffness and are therefore benign tissue that does not require biopsy.

In October, AMI will be offering 3D Mammography also known as Tomosynthesis. This technology offers exceptionally sharp breast images and gives radiologists the ability to identify and characterize individual breast structures without the confusion of overlapping tissue.

Multiple low-dose images of the breast are acquired at different angles. These images are then used to produce a series of one-millimeter thick slices that can be viewed as a 3D reconstruction of the breast. This technology has many advantages including improved cancer detection especially in women with dense breast tissue, improved lesion characterization, and potentially reduced recalls and fewer biopsies. There is a small amount of additional radiation inherent in the 3D technology, so the radiologist will protocol which patients may benefit from this test.

Gig Harbor dental hygienist takes services on the road Geographically, she could go anywhere in the state where there is demand. “There’s a ton of potential out there. Just in Gig Harbor, there’s so many nursing homes and throughout the state, there’s a huge amount of people without access to dental care,” she said.

The niche is also growing, according to Anita Rodriguez, president and founder of the Alliance of Dental Hygiene Practitioners and owner of ElderCare Dental Hygiene. Based in Stanwood, Rodriguez has been providing mobile services for 12 years and currently has clients in eight counties including Kitsap. She also consults with hygienists who want to start

their own community-based mobile practices, and has seen an increased interest in recent years both from clients and practitioners, some of whom specialize in children’s services instead of seniors.

“It’s growing phenomenally. There’s already such a huge need,” she said. “At least 50 percent of the population doesn’t have dental insurance and even those with insurance often have difficulty getting services.”

Rodriguez said seniors who live in assisted living settings are keeping their teeth in “record numbers” and the notion that losing teeth is a normal part of aging is no longer the paradigm.

“The Boomers are aging and losing their ability to go do the dentist, so we’ll see more disconnect,” she said. “It’s a real godsend for a hygienist to be able to take care of preventative needs then communicate with a dentist if there’s any problem.”

She said it’s a misconception that there is lack of communication with dentists due to not being located under the same roof.

“We’re still communicating with them and trying to get the families to take (patients) to treatment,” she said. “The services are always (provided) with the comprehensive vision in mind — it’s still very much interdisciplinary.”

October 2011 Kitsap Peninsula Business Journal•KPBJ.com 13

By Rodika Tollefson House calls used to be common practice in the medical field decades ago but these days finding a doc to come to a patient’s home is next to impossible. Locally, however, there’s one niche where both need and demand has been growing: dental hygiene. And Gig Harbor dental hygienist Jennifer Lyons has been tapping into that niche.

Lyons, who opened her business Harbor SMILES Hygiene earlier this year, has been visiting assisted living and adult group homes around the area. She packs up her selfcontained, mobile office — including dental chair and the usual instruments — then sets up “shop” at the clients’ place of residence, whether a private home or a facility.

“The services she provides are invaluable,” said Erin Parker, director of nursing services at Marine Courte Memory Care in Bremerton.

“We were so happy to have it available because dental hygiene for dementia (patients) goes by the wayside and it’s so important.”

Lyons has been a hygienist for 18 years and when she looked for a change last year, she learned she could have an independent practice. However, overhead costs for a dental hygienist would be cost-prohibitive in a physical space, so she decided to launch a home-based business and cater to the senior population in their homes.

“So many people retire and they quit coming in (for dental health) because their income changes or they can’t drive,” Lyons said. “This is a way to keep taking care of them.”

Because of the lower overhead, she said her services cost 40 to 60 percent less than in a traditional setting. She can bill insurance but targets people without insurance coverage.

Patients receive the same dental cleaning they would in an office, except she doesn’t take Xrays or provide comprehensive exams that are customarily done by a dentist during the same checkup. Hygienists are also not licensed to administer anesthetics for numbing the gums or nitrous gas.

“People still need to see their dentist regularly for the full exam,” she said, adding that she can refer patients to a dentist or point out if she sees an urgent problem.

Lyons grew up in Port Orchard and got into the medical field as a teenager, helping in the dental practice of her father, John Moreland, who owned a clinic in the Cedar Heights Professional Center. As a 15-year-old, she cleaned instruments and did other small jobs, and decided some day she would become a dentist herself.

Instead, she took a detour into a career in photography, but ventured back into the dental health field. Except Lyons wasn’t attracted to the idea of the extensive schooling dentists needed, so she chose hygiene instead.

She worked in her father’s practice for a while before he retired and later joined other dentists.

Since launching Harbor SMILES Hygiene in January, Lyons has been growing her customer base while wearing all the other hats small business owners do, including marketing. Her husband, who ran a business before and has administrative background, has also been giving her a hand.

Tips for investors in the ‘new normal’ economy

By Donald Creech, CFP, AIF Investors were twisting in the wind last summer waiting for QE2, which was to promote investor confidence and consumption from the implied “wealth effect” of higher portfolio statements. Did that work? Not so much.

Not only have we not had significant increase in consumer spending, our job loss is greater than imagined, whether a few months or a few years ago. The Fed and our politicians generally believe giving money to people will generate spending that will generate a growing need for employees creating a self-sustaining reinforcing cycle. Much to their surprise, the cycle seems to be more of whirlpool from which there is little escape.

Now, we are twisting in the wind waiting for the Fed to bring out another version, but renamed QE3, to continue a not so transparent support of failing banks and a booster shot to the capital markets.

We are twisting in the wind to see how quickly the Euro disintegrates under the growing reality that neither politicians nor populations like austerity in any form. This is

especially so when individuals or countries lack productive private sector jobs with which to expand capital, i.e. Greece, Portugal, Italy and Spain.

Domestically we are twisting in the wind for government to create new jobs. Unfortunately, that hope is no more satisfying than the characters in “Waiting for Godot.” Their waiting was futile. Godot was a no-show.

Sustainable growth in an investment portfolio requires corporate profitability and demand. Consumer demand has been declining for a number of reasons. In the headlines is the joblessness we face as a consequence of recent economic bubbles bursting. Reduced household income results in less spending. Duh! Congress seems to partially understand this. More significantly, the decrease in product demand results from the Boomers’ changing needs to save for retirement and eliminate debt.

The majority of the Boomers have met their major spending commitment to raising and educating their children. As empty nesters, they must save as they have never done before in their lives. They must pay off debt to reduce the

fixed monthly expenses of retirement. Both changes are essential for their household welfare and security. They are good decisions for families. For the country and business in general, not so much.

The increase in our household savings rate removes money from retail and services. The affected businesses react rationally. They reduce inventories. If buyers cross your threshold in fewer numbers and spend less than the previous normal, revenues decline, profits get squeezed and staffing needs shrink. Another person is laid off. Another household income declines. Less spending occurs. Fear and a need for security cause more saving. This becomes a self-fulfilling cycle until our population of adolescents increases giving parents the need to increase spending.

We are a fortunate country, because we have a large adolescent population on the way. Our birth rate is positive and above the replacement rate of 2.1 children per couple. Unfortunately, that demographic cohort won’t reach the teenage years until 2024. There is nothing government can do to change how long it takes a baby to become 13. We must merely wait it

out. We know our Godot will arrive — and when. It will still be a long wait.

This is the new normal for our economy. It is only one of the problems Europe is facing.

Demographically, Europe has no such resolution in their future. The demographic shifts into aging cohorts in Europe leave few options for any of the sovereigns, much less the European Central Bank. The Euro and the Zone as we know them cannot exist in their present form. There is not enough money to solve their problems.

Investors must face a new normal in the markets. Clearly, there has been and will be higher volatility in daily prices. Investors and advisors usually try to control volatility with diversification and Modern Portfolio Theory applied to asset allocation. Generally, their efforts have not been well rewarded.

The Aug. 20 interview of Thomas Howard, Ph.D., University of Denver on my radio show provided some interesting insights for investors.

(Go to www.DonCreech.com to listen). “…The benefits of volatility reduction TIPS, page 17

YOUR TIMING

14 Kitsap Peninsula Business Journal•KPBJ.com October 2011

www.edwardjones.com

Members SIPC

WON’T BE OFF WHEN YOU INVEST REGULARLY.

If one of your worries is whether you’re investing at the right time, it shouldn’t be. By investing a set amount of money regularly, you establish a simple routine that can help make your financial goals a realty.

In addition, investing regularly can: Make it possible to use market fluctuations to your advantage Add potential growth and diversification to your portfolio Keep your long-term financial goals in focus Investing a set amount of money on a regular basis does not ensure a profit and does not protect against loss in declining markets. Such a plan involves continual investment in securities regardless of fluctuating price levels of such securities. You should consider your financial ability to continue the purchases through periods of low price levels.

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Mixing equity and income in your stock portfolio

By Andrew Finnigan Olympic Investment Center Kitsap Bank Low interest rates have been a boon for homeowners, but the picture hasn't been so rosy for income investors. Yet some people have overlooked one income-producing investment category that may also help with other financial objectives, such as reducing portfolio volatility.

What is it? Equity-income investments.

Learning the Basics Long-term investors often purchase equities for their growth potential. Since capital appreciation is the goal, some stock-issuing companies reinvest their earnings in the company. The hope is that as they grow, they'll capture more market share and the price of their stock will also increase. Essentially, the reward for the investor is delayed, if it occurs at all.

Other companies opt for instant gratification, paying part of their earnings, called dividends, to shareholders. Dividends are issued on a regular basis often quarterly. Many large, well-established companies, such as Coca-Cola and General Electric, have historically issued dividends.1 Why Invest?

There are several reasons to consider adding dividend-paying stocks to your portfolio.

Equity-income investments may provide supplemental income, during retirement, for example. They offer another choice for potential income in addition to bonds and cash equivalent investments. And dividend income may help provide a cushion in your portfolio against stock market volatility.

Dividend-paying stocks have at times outperformed non-dividend paying stocks. The

prices of dividend-yielding equities have historically also fluctuated less than nondividend paying equities. Considering an addition of these income-producing stocks to your portfolio could potentially help smooth the impact of market swings.

A significant number of companies have increased dividends in recent years.1 Tempering Risk One way to tap the potential of dividendpaying stocks is to invest in an equity-income mutual fund. Professional money managers carefully screen companies, looking for consistent, financially stable dividend payers.

Additionally, the fund managers may purchase the stock of many companies, potentially reducing risk. Note that past history in regard to performance and payments of dividends does not indicate that they will always continue to do so into the future.

It's important to choose investments that match your needs. If equity incomeseems appropriate for you, ask a qualified financial professional for help selecting from among the many dividend-paying stocks and stock mutual funds available.

(Editors Note: Andrew Finnigan is an LPL Financial Advisor for Olympic Investment Center, located at Kitsap Bank. A fully licensed financial

consultant who has a deep understanding of the complexities of the market, Andrew has served the greater Puget Sound area for 12 years. In addition to holding his Series 7, 63 and state life and disability insurance licenses, Andrew also has an AAS Degree from Pierce College.)

1 Source: Standard & Poor's. Does not represent an investment recommendation. Stocks are represented by the S&P 500, an unmanaged index generally considered representative of the U.S. stock market.

Individuals cannot invest directly in any index. Past performance cannot guarantee future results. ©2010 Standard & Poor's Financial Communications. All rights reserved.

Keep your investments working hard — all year long

INVESTMENTS, page 16

October 2011 Kitsap Peninsula Business Journal•KPBJ.com 15

By Calvin Christensen On Sept. 5, we observed Labor Day, which is dedicated to the social and economic achievements of American workers. Of course, if you’re like most people, work is essential to your life, both as a means of personal fulfillment and as a necessity for achieving your financial goals, such as a comfortable retirement. But if you’re going to attain those goals, you’ll want your investments to work as hard as you do.

For that to happen, you’ll need to take these steps: Know your investment objectives.

Whether you work in an office, a manufacturing plant or any other venue, your goal is to produce a clearly identifiable result. And the same should be true for the way that you invest. In other words, you should know exactly why you own every single one of your investments - because only then will you have a clear, unified strategy for achieving your desired outcomes.

Keep investing. As a diligent worker, you show up to work every day because you know that this type of consistency is necessary for success. A similar principle applies to your investing “career.” By investing steadily, year in and year out, you have a much better chance of reaching your objectives than if you were to take periodic breaks. Of course, when the

Thinking of buying real estate with your IRA? Think again!

16 Kitsap Peninsula Business Journal•KPBJ.com October 2011

By Christopher Fraizer, CPA Waterfront CPA Group, Silverdale Imagine to yourself the following situation: The real estate market is in the toilet and the stock market is performing poorly (that wasn’t hard to do was it?). So you think to yourself “when prices are low it is a great time to buy.”

You begin dreaming late at night about buying real estate, being a landlord and then when this market turns around you will sell your dirt cheap properties for a hefty profit.

So you stay up late at night indulging in beverages that contain too much sleep inhibiting chemicals trying to hatch a plan to fund your new real estate empire. Banks are a hassle these days (again not hard to imagine). So it hits you like a ton of bricks: “I will use my IRA to buy the property!”

Now you think “wow, not only will become the lender, I won’t have to pay taxes when I sell because I am doing it all in my IRA.” You pinch yourself. Yes you still are awake and you can do this. You pinch yourself again. This time the pinch was harder and more painful because you should have thought of using your IRA to do this sooner.

Not so fast Donny Trump! Using your IRA to invest in real estate cannot only be a hassle, but could cost you more in taxes in the long run.

It seems these days self directed IRAs are the vogue of investment world. For all you investment newbies, basically a self directed IRA allows you to invest in non security type assets such as real estate.

There are things that people fail to consider when deciding to invest their IRA in real estate. In the end they may end up paying more taxes and having to comply with requirements than if they went the traditional route. This article will tell you what no one else if going to tell you about the unintended consequences of using your traditional IRA to invest in real estate.

Buying property outside of an IRA is already a tax sheltered investment. You may not need the IRA at all to shelter the tax.

When you buy an investment property you are allowed to take tax deductions for expenses like mortgage interest, insurance, repairs, property taxes, and even write off the cost of the house itself. Being able to write off the house expenses often shelters most or all the rental income from tax. If expenses are greater than income then in many cases you can use those losses to offset your W-2 income. Buying real estate outside an IRA can produce tax deductions now that lower your income from all sources today.

What about the same scenario in my IRA?

Unfortunately, those same expenses are not deductible. If you have expenses in excess of income then those losses stay in your IRA with no immediate benefit.

The second pitfall people often overlook is that when you sell your investment property for a gain, you can claim some of that gain as a long-term capital gain.

Historically long term capital gain tax rates have been lower than most ordinary income tax rates. Currently long term capital gain rates are 0 percent to 15 percent compared to 10 percent to 35 percent for ordinary income tax rates. However, buying and selling in an IRA does not give you capital gain. When you take the money out of your IRA, you pay tax on gains at ordinary rates. This could cause you to pay more tax in the long run.

The last thing to consider is all of the rules that go along with a property owned

by an IRA. The IRA owns the house not you. So you and your relatives are barred from working on or renting the property.

You may need to hire a property manager.

All expenses such as repairs and maintenance need to be paid from your IRA, not you personally. If you goof this up the penalties are steep. Your whole IRA suddenly becomes taxable and if you are younger than 59 ½ then there is also a 10 percent penalty on the value of your IRA. When considering the strict rules involved from and losing the tax breaks you need to enhance the investment’s profitability, your IRA is a poor shelter for real estate.

Final advice: check with a qualified tax professional to see if the newspaper article you are reading actually applies to your individual situation. The tax code is complex and so are the lives of the people who read these articles.

INVESTMENTS

skills, such as initiative, the ability to make decisions and the willingness to work on a team. However, throughout the course of your career, you may also need to add new technical proficiencies so that you can stay on top of developments in your field and maintain your productivity. As an investor, you also need some “core competencies,” such as patience, discipline and the ability to prioritize goals. But you also need to stay current on financial products, the economy, the markets and changes in tax- and investment-related laws. To help expand your knowledge base and receive timely guidance, you may want to work with a financial professional.

Labor Day comes just once a year. But by keeping your investments working hard 365 days a year, you can keep making progress toward the lifestyle you’ve envisioned.

from page 15 financial markets are volatile, it can be tempting to take a “timeout,” but this stopand-start approach can lead to missed opportunities. For example, if you jump out of the market when it’s down, you might miss out on the early stages of the next rally.

Build a productive portfolio.

Generally speaking, the most industrious workers are also the most productive ones.

And just as productivity is an asset in the working world, it’s important in the investment world, too. Strive to own a mix of investments in a balanced portfolio, based on your risk tolerance, time horizon and long-term goals.

Develop your investment skills. To truly be a good worker, you need a set of

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Don’t let low rates sink your retirement plans

By Lori Morgan Over the past few years, if you’ve taken out a mortgage or another consumer loan, you’ve probably welcomed the low interest rates you may have received. But as an investor, if you’ve kept any retirement savings in fixed-rate investment vehicles, you may have seen low rates in a less favorable light. And that’s why it may be time for you take a closer look at your financial strategy for working toward the retirement lifestyle you’ve envisioned.

Of course, you can always hope that interest rates will rise, and perhaps they will.

As you may know, the Federal Reserve has kept interest rates at record lows in recent years to stimulate lending and thereby boost the economy. But rates can’t get much lower, and if inflation were to heat up, the Fed could reverse course by starting to raise rates.

However, if you’re going to do a good job of building financial assets for retirement, you really can’t afford to play “wait-and-see” with interest rates. Instead, consider the following moves: Rebalance your portfolio. No matter what your situation, it’s a good idea to periodically rebalance your investment portfolio to help ensure it still reflects your risk tolerance, time horizon and long-term goals. If you’re concerned about low rates harming your future investment income, you have more reason than ever to review

your portfolio and make adjustments as needed, relative to your objectives. For example, if it seems that your portfolio has become “over-weighted” in any one vehicle, you may need to change your investment mix, keeping in mind your individual risk tolerance.

Redefine “retirement.” Retiring from one career doesn’t have to mean retiring from work altogether. If you decide to work part time, do some consulting or even open your own small business, you may be able to earn enough income to take some of the “pressure” off your investment portfolio in

terms of providing you with the money you need to live on during retirement. Also, by working during your nominal retirement years, you may be able to delay taking Social Security until you’re a little older, when your monthly checks can be larger.

Review your withdrawal strategy.

During your retirement, the amount you choose to withdraw from your investments each year will depend on several factors, including the size of your portfolio and the amount of income it is providing. As you chart your retirement strategy, you’ll need to factor in a realistic withdrawal rate.

Re-examine sources of investment income. You may want part of your retirement income to come from investments that offer protection of principal. If so, you don’t have to settle for the lowest-rate vehicles. By looking at the various alternatives and blending them with your overall portfolio, you may be able to boost your income without significantly increasing your investment risk.

In short, just because interest rates are low, you don’t have to lower your retirement expectations – as long as you plan ahead and explore your options.

TIPS

October 2011 Kitsap Peninsula Business Journal•KPBJ.com 17

from page 14 diminish very quickly and so by the time you hold 10 stocks, you’ve gotten most of the benefit and certainly by the time you’ve gotten 20 stocks, you’ve really exhausted the benefits of diversification in terms of reducing volatility. “…By diversifying across other asset classes that don’t have as high an expected return, what you end up with is lower performing portfolios.”

Regarding Modern Portfolio Theory: “…In the late ‘70s, when the modern portfolio theory really had reached its peak, as I look back now, it really has slowly been decaying ever since. “…What we want is an understanding of the market to allow us to make the best investment decisions and modern portfolio theory does not allow us to do that.”

What do investors do to grow their portfolios? “…Concentrated portfolios managed with consistently narrowly defined strategies can outperform and generate excess return.”

What is the solution? Use prices to determine globally where investors are committing their money or withdrawing it from positions held in your portfolio and your asset allocation strategy. Relative strength, combined with value and absolute loss limitations, provides a disciplined way to handle today’s evolving global investment arena.

(Editor’s Note: Donald Creech, CFP, AIF, is founder and president of Investor Resources, Inc. He may be reached at 360-895-9119. For more information, go to www.WisdomInCrowds.com or www.InvestorResourcesInc.com.)

TAX EFFICIENCY IN RETIREMENT

How much attention do you pay to this factor?

18 Kitsap Peninsula Business Journal•KPBJ.com October 2011

By Jason R. Parker Could you end up paying higher taxes in retirement? Do you have a lot of money saved in a 401(k) or a traditional IRA? If so, you may be poised to receive significant retirement income.

Those income distributions will be taxed.

As federal and state governments are hungry for revenue, you may see higher marginal tax rates in the near future.

Poor retirees with meager savings may rely

on Soc ial Security as their prime income source. They may end up paying less income tax in retirement, as up to half of their Social Security benefits won’t be counted as taxable income. On the other hand, those who have saved and invested well may retire to their current tax bracket or even a higher one.

Given this possibility, affluent investors would do well to study the tax efficiency of their portfolios. (Some investments are not particularly tax-efficient — REITs and smallcap funds, for example.) Both pre-tax and aftertax investments have potential advantages.

What’s a pre-tax investment? Traditional IRAs and 401(k)’s are classic examples of pretax investments. You can put off paying taxes on the contributions you make to these accounts and the earnings these accounts generate.

When you take money out of these accounts come retirement, you will pay taxes on the withdrawal.

Pre-tax investments are also called taxdeferred investments, as the invested assets can benefit from tax-deferred growth.

What’s an after-tax investment? A Roth IRA is a prime example. When you put money into a Roth IRA during the accumulation phase, contributions aren’t tax-deductible. As a tradeoff, you don’t pay taxes on the wi thdrawals from that Roth IRA (providing you have followed the IRS rules for the arrangement).

These tax-free withdrawals lower your total taxable retirement income.

As everyone would like to pay less income tax in retirement, the tax-free withdrawals from Roth IRAs are very attractive. As federal tax rates look poised to climb for obvious reasons, after-tax investments are starting to look even more attract ive.

As anyone can now convert a traditional

IRA to a Roth IRA, many affluent investors are considering making the move and paying taxes on the conversion today in order to get tax-free growth tomorrow.

Certain tax years can prove optimal for a Roth conversion. If a high-income taxpayer is laid off for most of a year, closes down a business or suffers net operating losses, sells rental property at a loss or claims major deductions and exemptions associated with charitable contributions, casualty losses or medical costs ... he or she might end up in the lowest bracket, or even with a negative taxable income. In circumstances like these, a Roth conversion may be a good idea.

Should you have both a traditional IRA and a Roth IRA? It may seem redundant or superfluous, but it could actually help you manage your marginal tax rate. If you have both kinds of IRAs, you have the option to vary the amount and source of your IRA distributions in light of whether income tax rates have increased or decreased.

Your marginal tax rate might be higher than you think. Consider that about 25 different federal tax deductions and credits are phased out as your income increases. Quite a few of these have to do with education. If you r children (or grandchildren) are out of school when you retire, good luck claiming those deductions.

Smart moves can help you lower your taxable income and taxable estate. An emphasis on long-term capital gains may help, as they aren’t taxed as severely as short-term gains or ordinary income. Tax loss harvesting — selling the “losers” in your portfolio to offset the “winners” — can bring immediate tax savings and possibly help to position you for better long-term after-tax returns.

If you’re making a charitable gift, giving appreciated stock or mutual funds you have held for at least a year may be better than giving cash. In addition to a potential tax deduction for the fair market value of the asset, the charity can sell the stock later without triggering capital gains. If you’re reluctant to donate shares of your portfolio’s biggest winner, consider this: you could give the shares away, then buy more shares of that stock and get a step-up in cost basis for free.

The annual gift tax exemption gives you a way to remove assets from your taxable estate.

In 2011, you can gift up to $13,000 to as many individuals as you wish without paying federal gift tax. If you have 11 grandkids, you could give them $13,000 ea ch — that’s $143,000 out of your estate. All appreciation on that amount is also out of your estate.

Are you striving for greater tax efficiency? In retirement, it is especially important – and worth a discussion. A few financial adjustments could help you lessen your tax liabilities.

(Editor’s note: Jason Parker is the president of Parker Financial LLC, a fee-based registered investment advisory firm spec ializing in wealth management for retirees. His office is located in Silverdale. The opinions and information voiced in this material are not intended to provide specific advice or recommendations for any individual, and do not constitute a solicitation for any securities or insurance products. All information is believed to be from reliable sources; however, no representation is made as to its completeness or accuracy. Consult a trusted professional for advice and further information. Parker is insurance licensed and offers annuities, life and long term care insurances as well as investment services.)

October 2011 Edition

Events And Activities

Sep 30, Oct 1 & Oct 2nd Peninsula Home & Remodel Expo Visit: www.kitsaphba.com for all the details!

Wednesday, Oct 5th HBA Remodeler Council Mtg., 4 p.m.

HBA Thursday, Oct 6th Developers Council Mtg, 7:30 a.m.

HBA Thursday, Oct 6th HBA Annual Membership Luncheon. 11:30 a.m.

ALL HBA Members should attend.

RSVP to HBA ($20/person) Saturday, Oct 8th First Aid/CPR Class 10 a.m.

Advanced Registration Required Open to Members and the Public Sunday, Oct 23rd Kitsap Energy Upgrade FREE Open House Noon - 4 p.m.

HBA Thursday, Oct 27th Executive Committee, 2:00 p.m.

Government Affairs Cmte., 2:30 p.m.

Board Meeting, 3:30 p.m.

Saturday, Oct 29th Kitsap Energy Upgrade FREE Open House Noon - 4 p.m.

HBA

Each year the Board of Trustees of the Affordable Housing Council of Kitsap County considers candidates running for elected office and makes endorsements of candidates they believe understand the importance of the construction industry in our community. While other endorsements may come before this newsletter hits the streets, the current endorsements are as follows: Kitsap County Commissioner . . . . . . . . . . . . . . . . . Commissioner Robert Gelder Port of Bremerton Commissioner . . . . . . . . . . . . . . . . . . . . Mr. Shawn Cucciardi Mayor, City of Port Orchard . . . . . . . . . . . . . . . . . . . . . . . . . Mayor Lary Coppola City of Bremerton City Council, Seat 2 . . . . . . . Councilmember Cecil McConnell South Kitsap Fire & Rescue, Fire Commissioner . . . . . . . . . . . . . Mr. Mike Eslava Central Kitsap Fire & Rescue, Fire Commissioner . . Commissioner Mick McKinley Watch for your ballots in the mail and exercise your right to vote!

It is important that all citizens legally allowed to vote, take the time to be registered and cast their ballots. Local government leaders affect our lives every day, in both big and small ways. Consider who you want to speak for you, and cast your vote of support. General election is November 8th.

2011 OFFICERS President . . . . . . . . . . . . . . . Justin Ingalls, RCS First Vice President . . Wayne Keffer, CGR, CAPS Second Vice President . . . . . . . . Robert Baglio Treasurer . . . . . . . . . . . . . . Randy Biegenwald Secretary . . . . . . . . . . . . . . Dee Coppola, CGA Immediate Past President . . Ron Perkerewicz

2011 BUILDER & ASSOC. DIRECTORS Derek Caldwell • Karla Cook • John Leage Robert Lubowicki • Judy Mentor Eagleson Jim Way, CGB • Jason Galbreath • Kevin Hancock Leslie Peterson, CGA • Shawnee Spencer

2011 STATE DIRECTORS John Armstrong • Robert Baglio • Derek Caldwell Lary Coppola • Walter Galitzki • Brent Marmon Gale Culbert, CGR, CGB, GMB Wayne Keffer, CGR, CAPS • Greg Livdahl

2011 ALTERNATE STATE DIRECTOR Robert Coultas • Rick Courson

LIFE STATE DIRECTORS Bill Parnell

2011 NATIONAL DIRECTORS Robert Baglio • Justin Ingalls, RCS Wayne Keffer, CGR, CAPS

2011 ALTERNATE NATNL. DIRECTORS David Smith • Mikael Brown • Jeff Coombe

LIFE DIRECTORS Rick Courson • Jim Smalley • Bob Helm Bill Parnell • Larry Ward John Schufreider • Dori Shobert

National Association of Home Builders

Member Advantage

Take advantage of YOUR MEMBER ADVANTAGE! There are national companies that want to do business with the construction industry. Each company named below, and several others, are putting their money where their mouth is and offering MEMBERS ONLY these discounts.

Do you use FedEx? Are you saving up to 29% when you ship Express?

How about 20% every time you use FedEx Ground? There are many other discounts too. Visit, www.1800members.com/nahb or call 1-800-636-2377 for details.

Do you use Dell? Members can save up to 30% off on top of the line Dell computers. Call 800-695-8133 and mention NAHB or visit www.dell.com/mpp/nahb.

Still not a believer? Do you need office supplies? Visit www.officedepot.com/nahb and start receiving 10% off all delivery orders and FREE shipping on orders of $50 or more. You can call Office Depot directly at 800-274-2753 and mention your NAHB membership to learn more.

For all the details on all the companies giving our members discounts, please visit, www.nahb.org/ma. These discounts are there for members to use. If you have any questions, please call the HBA at 360-479-5778. We are happy you are a member and look forward to connecting you with all the NAHB Member Advantage money saving opportunities.

2011 COUNCIL & CHAIRS Build a Better Christmas. . . Randy Biegenwald Built Green . . . . . . . . . . . . . . . . Walter Galitzki

By Laws & Nominations . . . Ron Perkerewicz Developers Council . . . . . . . . . . . . . Norm Olson Golf Classic . . . . . . . . . . . . . Shawnee Spencer Govt. Affairs Cmte. . . Wayne R. Keffer CGR, CAPS Remodelers Ccl Chair. . . David Godbolt, CGR, CAPS Membership . . . . . . . . . . . . . . . . Robert Baglio Parade of Homes . . . . . . . . . . . . . Dee Coppola Peninsula H&G Expo . . . . . . . . . Melvin Baird Peninsula H&R Expo . . . . . . . . . . . Tom Taylor

HBA STAFF Executive Vice President . . . Teresa Osinski, CGP tosinski@kitsaphba.com Administrative Coordinator . . Stephanie Buhrman info@KitsapHBA.com Expo & Events Director . . . . . . . . Toni Probert 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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Wednesday, Nov 2nd REX Awards Cocktail Reception, 5 p.m.

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Affordable Housing Council of Kitsap County Endorsements

October 2011 Edition

Throughout the last nine articles I’ve had the pleasure of Justin writing this year; I have made it Ingalls a point to promote some aspect Kitsap Trident Homes of a service one of our members provides. This month I want to 2011 President take the opportunity to remind all who read this, what our association stands for. On the home page of, our soon to be updated website, it states the following four items that The Home Builders Association of Kitsap County seeks: • To remain a pro-active, positive influence legislative, regulatory and civic arenas.

• To maintain a positive public awareness of the contribution of the home building industry to our communities.

• To encourage ethical conduct, good business practices and professionalism.

• To be an organization that promotes responsible use and management of natural resources.

You may have read an article in The Kitsap Sun last month, regarding our County Commissioners convening a “Summit” to discuss practices and details within the Department of Community Development.

Your Association was well represented by all of the senior leadership, as well as Past Presidents, Board Members and members asking to be involved.

Also in attendance was representation from The Realtor’s Association, the DCD Advisory Committee and County Staff. There were specific examples brought to the table such as discussing length of time for certain permits, areas where communication could improve, additional education and proposals of same day permits. This was the first step in an attempt to improved working relationships between private sector businesses and County government and staff. With conditions on both sides being impacted by tough economic times, this is a great chance for both sides to work and understand one another better.

There will be more meetings to come of this, and thus more opportunities to have your opinion heard.

Over the past year I and others have tried to promote doing business with a member and doing business with a licensed and bonded contractor. It has come to my attention over the past few months that some maybe forgetting the third line above while bidding on and securing jobs. Keep in mind, it’s a small world out there and there’s a certain saying that comes to mind about karma. I realize it’s difficult times for those involved in the building industry and when times are tough some might make decisions they normally wouldn’t. I believe our association has done a good job of staying positive and professional in these frustrating economic circumstances and congratulate each of you who are doing so as well.

This past month we had another successful nothing but social “Fling” at McCloud’s in Bremerton. A special thanks to Andy and staff for having us and helping to have a great evening. I’d suggest you consider joining the rest of us next spring for a night of catching up with old friends and making new ones. With a lack of monthly membership luncheons and dinners, these truly are fun event and thanks to all for being there.

Hopefully you were able to attend our Fall Home and Remodel Expo this month. It was once again a successful show. Those in attendance found it hard not to come away without learning something to increase your home’s efficiency or find a trendy decorating idea. Best of all you found, a professional contractor or supplier to help you with both.

Recently the HBA was invited to a “summit” on Kitsap DCD performance.

The meeting was interesting and CGP presented data about the timeliness of permit review and Executive the number of approved Vice President permits over specific periods of time. One of the issues important to the HBA and many other interest groups is the way the County processes important public policy matters. While many of the code revisions handled by DCD are well organized with clear public participation opportunities, several in the last two years have not been handled in the same open way. Unfortunately, there was not adequate time in the “summit” to address this concern. After reviewing the data prepared by Director Keeton, there was a dynamic discussion about how the County might improve processing times by reducing some of the workload. Specifically, the County could make an effort to implement Over The Counter and Subject to Field Inspection for many remodels, like commercial tenant improvements and interior residential remodels. Some jurisdictions are able to do permitting on line and that would be a vast improvement in DCD efficiency as well as the contractor’s efficiency. At the conclusion of the meeting, DCD was directed to bring back a plan to the Board of County Commissioners about how to fully implement more permit streamlining. The HBA was pleased to have been included in the meeting and is looking forward to continuing to work toward solutions and economic growth.

I hope everyone will be attending the Home and Remodel Expo at the Kitsap Sun Pavilion at the Kitsap County Fairgrounds, September 30, October 1 and October 2. This is a terrific show full of great and information professional tradespeople able to help you with everything for your home.

Members, please RSVP to the HBA for the annual general membership meeting. We will be holding the annual election of Officers and Directors as well as hearing from the candidates for the north end County Commissioner race (Rob Gelder and Chris Tibbs).

We hope to see a huge turnout and lunch is only $20. Paid guests are welcome with an HBA member. Please contact the HBA to make your reservation.

Teresa Osinski

WELCOME Stephanie Buhrman!

The HBA is happy to welcome our new Administrative Coordinator, Stephanie Buhrman. Stephanie comes to the HBA with an accounting degree, many years of event coordination and planning, and a family active in the South Kitsap community. Stephanie will be a new voice on the phone when you call and a new face you will see when you visit. Stephanie will be handling many important things here at the HBA including member accounts and accounts receivable. I encourage all our members to take a moment to drop Stephanie an email or a quick call to say hi. We are so exciting to bring Stephanie on board!

October 2011 Edition

Government Affairs Committee Wayne R. Keffer WRK Construction, Inc. 2011 Chair

Not too long ago I had the opportunity to talk to an older, retired, local contractor in the area. I have come to realize that what they actually did was develop land, build and remodel homes and businesses. When compared to what modern construction companies do — navigate a myriad of rules and regulations, hire consultants, engineers and lawyers, assess risk, manage weekly safety meetings, complete lead paperwork, communicate and keep current on the ever-changing codes and proposed new regulations — and occasionally build or repair a structure. It is not my desire to bellyache, but rather make a point that it is harder than ever to work and make a living in this industry.

So, if not bellyaching, then why bring this up?

I mention this in order to suggest a few things the County can do to help legitimate, registered, contractors be successful thus creating jobs and increasing the tax base. I also make a few observations of ways we can be responsible for improving our own situations. It is only fair that we should first get our act in order. To do that we should: 1) Join a professional organization like the HBA that represents our industry. Doing so shows professionalism and increases our awareness as well as opportunities.

2) Get educated. Taking classes to be better business owners and more knowledgeable trades-people is key to sustaining the ever changing tide of this industry. Classes offered by NAHB often taught right hear in Kitsap county, and will teach you better construction techniques, keep you up to date on new requirements, and help you to implement important business management skills and knowledge so you can better serve your customer, increase your bottom line and decrease liability at the same time.

3) Develop relationships with other hard working, honest, and reliable people in our community. This could be volunteering to help

the needy, be a coach, teaching Sunday school, serving on the PTA board, Rotary, etc...

4) Always treat our customers with respect and give them an honest assessment of work required and do that work for a price that is both fair to the customer and profitable for our time and risk.

According to an article found at www.housingeconomics.com, The Direct Impact of Homebuilding and Remodeling on the U.S. Economy, the County and its citizens also need the homebuilding community to be successful.

For every new home built over 3 full time jobs are created and over $89,000 in taxes are generated.

The same article explains that for every $100,000 in remodeling money spent 1.11 full time jobs are created and over $30,000 in taxes are captured.

Again I say the County and its citizens need us to be successful.

My suggestions might start with 1) Make permit processing the number one goal of DCD. According to DCD’s own data shown in the lobby of their offices on September 15, 2011, SINGLE FAMILY PERMITS WERE TAKING 59 DAYS TO PROCCESS. Developing and re-writing new codes, however useful should wait till DCD develop the ability to serve the paying customer (citizens of Kitsap). WE AS A INDUSTRY NEED TO WORK. THE CITIZENS OF KITSAP SHOULD EXPECT THE COUNTY TO HELP US GET BACK TO IT because the taxes generated would help the County fund a full time staff and numerous public services that have been significantly cut in the last several years.

2) “Over the Counter” permits and “Subject to Field Inspection” permits should be the rule, not the exception. Interior remodels and minor exterior work such as decks should have an inexpensive, streamlined, easy process that currently does not exist. No doubt the bulk of interior remodel and deck construction is done without proper permit. Exterior decks automatically force septic inspections and the inevitable time delay associated with the required full review. And there always seems to be a reason for issuing a “Subject to Field Inspection” permit. In short my customers, whom are the citizens, view the county as a hindrance instead of the public advocate the county desires to be.

A real world example of this issue follows: Imagine your loved one can’t come home from the hospital until safe access is built to allow your

love one to enter and leave the home. This will require a small deck with a ramp to be built. To do this today’s citizen will be required to get a deck permit with a full county DCD and Kitsap Health District review (this house is on a septic). The Health District review is required because you will need a Building Site Clearance which is provided by them. Between these two departments how time will it take? Will you now have to pay for more days in the hospital or nursing home (hopefully this would not take 59 days and put your family in bankruptcy)?

3) In this modern world there is no excuse for the county failing to offer minor permits online.

(Even Labor and Industry can do it; a fact that should embarrass the County). If a legitimate contractor can get a permit online at a reasonable cost I believe he or she will do it. (It raises professionalism and is an added service to their customers). The County should also keep the cost to process and inspect these small jobs low or people will again avoid the permits. The county should offer this online permit option to registered contractors who are in good standing.

Allow the job to be certified by the contractor by affidavit and/or with photo documentation. Keep the county costs under control by inspecting jobs in a random/lottery draw and thus reduce the chances of contractors cheating the system.

Develop strict enforcement policies and use them when warranted to keep everyone honest. For example, the other day I picked up a permit to add siding to just the front of home. The siding permit was about $170. Of that amount, $90 was the flat processing fee the County collects for almost all permits. If I could have done this online, I would have saved about 2 hrs of my own time, freed up more time for others that needed to be at DCD in person, reduced DCD staff time, and helped a customer meet the County’s expectations easily. I challenge the county to show me how they covered their cost on the $80 dollars they collected for this permit and the inspection that will follow.

I want to be clear: my intention is not to bash the County and its employees. I work with them daily and they are qualified, nice people that I enjoy working with. They have to work in the framework directed from above. My intention is to help the management and directors above realize the impact to our citizens when the building industry is not allowed to thrive for our community.

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October 2011 Edition

Welcome New Members Shawnee Spencer Alaska USA Mortgage Company (360) 731-0407 (800) 813-1799 Email: S.Spencer@alaskausamortgage.com Sponsor: Ron Perkerewicz, Inspection & Permit Services

Brad Paige Caseco Associates Inc PO Box 67 Port Orchard, WA 98366 (360) 876-9213 Email: casecoassociates@lbu.com Sponsor: Daniel Ryan, Tim Ryan Construction, Inc

Tim Mears Premier Rentals LLC 2618 SE Mile Hill Dr. Port Orchard, WA 98366 (360) 876-4400 Sponsor: Dee Coppola CGA, Wet Apple Media

Jim Calahan Island Hammer LLC PO Box 2435 Poulsbo, WA 98370 (360) 697-9434 Email: jim@islandhammer.com Sponsor: Dee Coppola CGA, Wet Apple Media

Rick Roach Wall Design Inc 19689 7th Ave NE, Ste. 342 Poulsbo, WA 98370 (360) 779-9009 Email: walldesignhsd9@earthlink.net Sponsor: James Ingalls, Kitsap Trident Homes

Mark Grant Grant Steel Buildings & Concrete Systems Inc 75 Haada Laas Rd. Port Townsend, WA 98368 (360) 379-3236 Email: grantgc@olympus.net Sponsor: Ron Perkerewicz, Inspection & Permit Services

Thank You Renewing Members Over 30 Years First American Title Ins. (33) 30 Year Anniversary Viking Fence Company Over 20 Years Port Orchard Sand & Gravel Co (28) Ecklund’s Drywall & Painting (24) Sun Path Custom Construction (22) PRO Build of Bainbridge Island (21) Over 15 Years B Reid Construction Inc H & S Quality Construction Morrison’s Decorative Concrete Beisley Inc Timberland Bank

Over 5 Years Ed Heuss Company Byron Logan Construction Inc Coldwell Banker Park Shore Real Estate Air Management Solutions LLC Quasa Enterprises Peninsula Paint Company 1st Choice Housekeeping Inc Michael F Wnek PE PS 5 Year Anniversary JL Homes Ronald C Templeton PS Attorney at Law

Over 10 Years O’Brien & Company Bainbridge Landscaping & Topsoil Eagle Crest Construction Advanced Heating & Cooling Inc Port Orchard Glass LLC Coultas General Contracting Apex Construction LLC 10 Year Anniversary Advanced Rentals & Sales

A Spike is a member who sponsors new members into the association. The association loses a number of members each year from non-renewal due to changes in business circumstances. This membership loss must be made up with new members if the association is to continue; without active Spikes our association would not exist.

LIFE SPIKES CREDITS Jim Smalley . . . . . . . . . . . . . . . . . . . . . . . . . 380.5 Tim Burke . . . . . . . . . . . . . . . . . . . . . . . . . . . . 318 Gale Culbert . . . . . . . . . . . . . . . . . . . . . . . . . . 266 Dee Coppola . . . . . . . . . . . . . . . . . . . . . . . . 243.5 Kerry Chamberlin . . . . . . . . . . . . . . . . . . . . . 237 Dale Armstrong. . . . . . . . . . . . . . . . . . . . . . 235.5 Bill Parnell . . . . . . . . . . . . . . . . . . . . . . . . . . 218.5 Michael Hancock . . . . . . . . . . . . . . . . . . . . 187.5 Andy Mueller . . . . . . . . . . . . . . . . . . . . . . . . . 185 Douglas Woodside . . . . . . . . . . . . . . . . . . . . . 182 Kevin Parnell . . . . . . . . . . . . . . . . . . . . . . . . . 176 Bob Helm . . . . . . . . . . . . . . . . . . . . . . . . . . . 175.5 John Armstrong. . . . . . . . . . . . . . . . . . . . . 150.75 Rick Courson . . . . . . . . . . . . . . . . . . . . . . . . . 149 James Ingalls . . . . . . . . . . . . . . . . . . . . . . . . . . 144 Randy Biegenwald . . . . . . . . . . . . . . . . . . . 126.5 Greg Livdahl. . . . . . . . . . . . . . . . . . . . . . . . . . . 95 Robert Lubowicki . . . . . . . . . . . . . . . . . . . . . 91.5 David Smith . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 Michael Brown . . . . . . . . . . . . . . . . . . . . . . . 85.5 Larry Ward. . . . . . . . . . . . . . . . . . . . . . . . . . . 82.5 Jeff Coombe . . . . . . . . . . . . . . . . . . . . . . . . . . 77.5 Dori Shobert . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Lary Coppola. . . . . . . . . . . . . . . . . . . . . . . . . 54.5 Rick Cadwell. . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Joanne Lockwood . . . . . . . . . . . . . . . . . . . . . 42.5 Charlie Mackall . . . . . . . . . . . . . . . . . . . . . . . . 42 Donna Milner . . . . . . . . . . . . . . . . . . . . . . . . 41.5 Cheryl Gallup . . . . . . . . . . . . . . . . . . . . . . . . 39.5 Scott Henden . . . . . . . . . . . . . . . . . . . . . . . . . 38.5 Ron Perkerewicz . . . . . . . . . . . . . . . . . . . . . . 37.5 Larry Elfendahl . . . . . . . . . . . . . . . . . . . . . . . 35.5 Justin Ingalls . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Wayne Keffer . . . . . . . . . . . . . . . . . . . . . . . . 33.75 Steve Crabb . . . . . . . . . . . . . . . . . . . . . . . . . . 29.5 Steve Brett . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Barry Keenan . . . . . . . . . . . . . . . . . . . . . . . . . . 26

SPIKES CREDITS Brent Marmon . . . . . . . . . . . . . . . . . . . . . . . . . 24 Dave Revis . . . . . . . . . . . . . . . . . . . . . . . . . . 23.75 Jeff Swan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.5 Robert Coultas. . . . . . . . . . . . . . . . . . . . . . . . 23.5 AnnaLee Todd . . . . . . . . . . . . . . . . . . . . . . . . . 15 Joe Gates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.5 Darren Devitt . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 SPIKE CANDIDATES CREDITS Robert Baglio . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Walter Galitzki. . . . . . . . . . . . . . . . . . . . . . . . . 3.5 Brad Reid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Corey Watson . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Derek Caldwell. . . . . . . . . . . . . . . . . . . . . . . . . . 3 Frank Murr . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Jim Heins. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Judy Granlee-Gates . . . . . . . . . . . . . . . . . . . 2.75 David Godbolt . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Jon Brenton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Karen Alyea . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Len Mallory . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Robert Simonoff . . . . . . . . . . . . . . . . . . . . . . . . . 2 Ted Bowman . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Al Timm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 Brett Warner . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 Daryl Hemley . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 Ken Holmgren. . . . . . . . . . . . . . . . . . . . . . . . . 1.5 Mark Khulman . . . . . . . . . . . . . . . . . . . . . . . . 1.5 Michael Glading . . . . . . . . . . . . . . . . . . . . . . . 1.5 Rob Smallwood . . . . . . . . . . . . . . . . . . . . . . . . 1.5 Ron Galla . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 Ron House . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 Daniel Ryan . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 James Pickett. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 John Leage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 John Ramsdell . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Judy Mentor Eagleson . . . . . . . . . . . . . . . . . . . 1 Ken Orlob . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Leslie Peterson . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Mike Orcutt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Molly McCabe . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Shawnee Spencer. . . . . . . . . . . . . . . . . . . . . . . . 1 Steve Johnson . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Steve Morrison . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Bill Carter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Jim Ullrich . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2 Years and Over Luba’s Floorcovering Inc McCormick Construction LLC FIRST YEAR RENEWALS Quality Heating & Air Conditioning Paul Davis Restoration of Olympic Peninsula

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BJC Group installing EV charging stations as part of Grey Chevrolet renovation The BJC Group, Inc. announced that it has started the renovation of the Grey Chevrolet Dealership located off of Highway 16 in Port Orchard. Coinciding with the renovation of the facility is the arrival of the first Chevy Volts. The BJC Group is installing several electric vehicle (EV) charging stations to accommodate the Chevy’s new electric vehicle. The City of Port Orchard recently installed a set of EV charging stations on the downtown waterfront.

The facility improvements involve a small addition along with interior and exterior improvements.

The building addition includes area for a new customer waiting area, Wi-Fi, and coffee/vending. These

Kitsap Home Builders Association completes energy upgrades, hosts tours

Highway #305 Land For Sale

Norton earns Building Analyst Professional certification Chay Norton, with Smallwood Design & Construction, Inc. has just been awarded Building Analyst Professional certification from the Building Performance Institute. This certification enables Norton to conduct comprehensive whole-home energy and air quality assessments based on building science.

Smallwood Design & Construction, Inc. is a full-service, custom home and remodeling contractor and can be reached at (206) 842-5443 or online at www.smallwoodconstruction.com.

Partners In Success Pacific Northwest Title, Local Real Estate and Lending Offices Holding 7th Annual Food Drive To benefit Kitsap County food banks. Drop off non-perishable food donations at area real estate and lending offices or any of the 3 branches of Pacific Northwest Title from October 24 – November 11.

Thank you for partnering with us to help make a difference in our community.

7th Avenue in Poulsbo

SILVERDALE OFFICE 360-692-4141 • 800-464-2823 2021 NW Myhre Road, Suite 300 Silverdale, WA 98383

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BAINBRIDGE ISLAND OFFICE 206-842-2082 • 800-884-7636 921 NE Hildebrand, Suite 200 Bainbridge Island, WA 98110

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Title Insurance Escrow Services Real Estate Resources

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360-895-7799 1382 SE Lund Avenue, Suite 1 Port Orchard, WA 98366

www.pnwtkitsap.com

October 2011 Kitsap Peninsula Business Journal•KPBJ.com 23

The improvements made by the Home Builders Association of Kitsap County to its Bremerton headquarters are now on display as a live demonstration to builders and homeowners on how they can realize savings from energy efficiency upgrades.

Kitsap County partnered on the project and obtained funding from the Department of Energy for the project. An Open House with free tours is slated for Oct. 23 and 29.

Visitors will learn from experts about the six key strategies deployed to drive dow n energy consumption, minimize wasted resources and deliver more green to their wallet. Builders will find the latest features that add value and innovative energy efficiency strategies to their projects.

The energy-saving strategies used as part of the project included better air sealing, more insulation, new appliances and equipment, more efficient plumbing fixtures, a “cool” roof and new efficient li ghting.

“This federal grant gives us the resources to showcase better building strategies while saving our membership money — an exciting way to ‘walk our talk’ and provide real benefits to Kitsap County residents and members of the HBA”, said HBA’s Executive Vice President Teresa Osinski.

The free tour includes a living classroom where each of the strategies deployed are explained through on-site sig nage and the results explained by volunteer docents. A slideshow displaying the work in progress, giveaways and themed prizes are part of the Open House.

The event hours are noon to 4 p.m. both Sunday, Oct. 23 and Saturday, Oct. 29.

The HBA is located at 5251 Auto Center Way in Bremerton and may be reached at (360) 479-5778. For more project information, visit www.kitsapenergyupgrade.com.

new spaces provide a warm, comfortable environment for customers to frequent while having their car serviced or looking at new vehicles.

The exterior improvements include a complete facelift with the installation of new metal cladding on the fascia and building facade, along with a new main entry tower that will provide a prominent focal point to draw attention.

Interior improvements include upgrades to the service area, parts, accounting, and show room. The upgrades include new finishes such as ceramic tile, new acoustical ceilings, storefront doors and windows, new lighting, and casework.

For more information, contact Robert Baglio at (360) 895-0896, rbaglio@bjcgroup.com or visit www.bjcgroup.com.

Habitat for Humanity purchases six lots at Bay Vista in Bremerton Bremerton Housing Authority (BHA) has sold 6 building lots at Bay Vista, the replacement neighborhood of the Westpark public housing project, to Habitat for Humanity of Kitsap County. Predevelopment planning is already underway

by Habitat to build six homes on the lots, to be configured in two tri-plex buildings. The contiguous lots are near the corner of Oyster Bay Road and Russell Road and are surrounded by recently constructed new rental homes developed by BHA. Kurt Wiest, BHA executive director, said “The land sale to Habitat for Humanity

is another milestone in realizing the redevelopment opportunities and potential for Bay Vista. From the very beginning of laying out plans to bring change to Westpark, we wanted to have Habitat for Humanity as a partner in the transformation. We are grateful for their support and look forward to having six new homeowners in the new Bay Vista neighborhood.”

Habitat for Humanity of Kitsap County’s partnership with Bremerton Housing Authority contributes to an historic community transformation that continues

Commercial Property for Sale

through the Habitat community volunteerism, which is the hallmark of Habitat’s home ownership program. Ted Treanor, Habitat executive director, said “BHA’s remarkable Bay Vista project is located at one of the key entry ways to the city of Bremerton. We have already selected our first family for home ownership. The next round of family selection will be in October.

Habitat plans to build six townhomes in two phases. Each phase will include a 3 bedroom, a 4 bedroom and a 5 bedroom home, ranging from 1148 to 1594 square feet of living space. Site development and construction will begin immediately. They hope to have the first three Habitat families move in by June 2012, and three more

families to move in before the end of 2012.

“As part of a top ten North American builder, Habitat is continuing to build sustainable green homes. Each home has greatly reduced energy consumption, due to high insulation values, energy efficient heating, thereby achieving a four star energy rating”, said Treanor.

A ground breaking event is planned for Oct. 8 at 10 a.m. Bremerton’s Mayor Patty Lent, who regularly attends Habitat events, said “BHA’s and Habitat’s partnership has smartly pooled their resources to serve more families in need with affordable housing. It is evident that their responsible programs are working despite our challenging times.

Two brokers join Karin Kay Properties Commercial Building – The Nordic Building 19166 State Highway 305 NE Poulsbo, WA 98370 Price: $1,295,000 NWMLS# 181537 Building size: 5,015 sq ft Lot size: 31,799 sq ft Located on the high profile SE corner of ST HWY 305 and Lincoln Rd in Poulsbo and originally built as a real estate office. The 5016 square foot brick building has plenty of parking in two lots, two reception areas for separate businesses, open main area surrounded by private offices, two coffee lounges with kitchenettes, men’s and women’s lavatories, and a roadside “reader board”. See the lot next door for more land.

Karin Kay announced the newest additions to the firm’s team, Melanie Gordon and Marilyn Kover.

Gordon has been living in Kitsap County for many years and is steadily growing her real estate business.

Kover brings over 18 years in real estate sales and aspired to become a real estate broker after her difficult experience purchasing her first home.

“I am really looking to forward to working with these two outstanding women and watching them succeed,” said Kay. Melanie Gordon Marilyn Kover Reach Karin Kay Properties at (360) 479-7653.

24 Kitsap Peninsula Business Journal•KPBJ.com October 2011

Vacant Commercial Land Corner of NE Lincoln Rd & 10th Av NE Poulsbo, WA 98110 Price: $650,000 NWMLS# 246860 Lot size: 111,078 sq ft This is a 2.5 acre commercial lot in a prime location next to the Nordic Building and near the proposed Safeway site. There are approx. 270 feet fronting Lincoln and 430 on 10th Av within the Poulsbo Commercial Zoning District with many varied uses permitted.

Commercial Property 159 Wyatt Way NE Bainbridge Island, WA 98110 Price: $495,000 NWMLS# 246399 Building size: 1,674 sq ft Lot Size: 7,635 sq ft Zoned ‘Core Mixed Use Town Center’ and centrally located in down town Bainbridge Island, old town Winslow. It is ideal for an office or small business.

Originally built as a residence, then used as a Surveyors office, it has 10 parking spaces, and varied uses.

Bill Barrow

10048 NE High School Rd Bainbridge Island, WA 98110 206-842-1733 ext: 105 & 124 www.CBMcKenzie.com

Chris Miller

Professional rain garden workshop offered in Bremerton A two-day workshop for green industry professionals covering the design and installation of rain gardens will be offered Wednesday-Thursday, Oct. 5-6. The workshop will cover the benefits, regulations, site analysis, hydrologic modeling, materials specifications, maintenance and marketing these low-impact development (LID) features to clients.

The class is available for total of 10 CPH credits and is presented by the WSU Extension Kitsap. A database of businesses that have completed the training will be compiled to provide to Kitsap County homeowners and small business owners in who are seeking to hire professional firms for rain garden projects.

The workshop is from 9:30 a.m. to 4:30 p.m. both days and cost is $85 per day or $150 for both days. Box lunch and beverages will be included for the event, which will be in the Norm Dicks Building, 345 6th Street in Bremerton.

For online registration go to kitsap.wsu.edu. For more information contact Colleen Miko at cmiko@co.kitsap.wa.us or (360) 307-4378.

Construction started on Sullivan Investments Building Miles Yanick and Company, Architects, announced that construction is underway for the JD Sullivan Investments building.

The building is located just off the intersection of State Highway 3 and Kitsap Way in Bremerton. This location provides access to the freeway and ready access to the Seattle/Bremerton ferry.

The general contractor for the project is the Robinson Company Inc. The building is being constructed using the concrete tilt-up method. Tilt-up involves using the building concrete slab as a casting bed for the formation of the load-bearing wall panels, which are cast in place and “tilted” or lifted, typically via a crane, into final position. This economical system was

such as sales, office space, general warehouse and shop space. The second floor areas will be served by an elevator. Ample parking and loading areas are provided. These areas will be paved with pervious paving to enhance and reduce the storm water runoff from the site.

Tenants for the first building include Sullivan Heating and Cooling and Airgas Company. They will occupy approximately half of the building.

The leasing agent for the complex is Greg Millerd with Cushman & Wakefield and can be reached at (206) 521- 0237.

invented in the 1890’s by an army engineer named Robert Aiken. The idea was flirted with

by Thomas Edison and later in the 1920’s by California architects including Irving Gill and Rudolph Schindler. The method went somewhat dormant until after World War II. Key innovations such as the travelling crane allowed the tiltup system to resume development.

The two-story, 24,000 square foot building is designed with a flexible floor plan to accommodate multiple uses

Port Gamble S’Klallam Tribe announces plans for an all-new Point Casino facility

Real Estate Transactions Self-Directed IRA, 401K, Tax Deferred

The Skinny on the Mortgage Industry...

Buying bank-owned investment properties Unless you’ve boycotted television, newspapers, Facebook, Twitter and phone calls from grandma — you’re already well versed in the idea that the real estate landscape has significantly changed. But there is still significant money to be made in real estate investments — if you’re smart about it.

Think about it. Real estate prices are down and bank-owned properties are abundant.

These bank-owned or distressed properties are priced low due to the fact that many of them are not lendable through conventional means. During the long foreclosure process, properties are sometimes stripped of important things like light fixtures, appliances, hot water heaters and even toilets by previous owners. Or, they may have sat empty through the winter, and suffered minor damages due to not being winterized.

Banks are just not in the business of home rehab. Rather than investing funds in fixing the issues, they’re selling them “as is.” This presents a financing problem since the large loan investors like Fannie Mae and Freddie Mac simply won’t do loans for properties that are not in average condition.

With so few buyers able to pay cash, the demand is low for a large number of properties on the market, resulting in falling prices. Seems like a great deal, but many people are hesitant to commit the cash and run the risk of having all their eggs in one basket.

Rescuing properties in distress Enter The Legacy Group. A respected, employee-owned mortgage banker, Legacy has a unique loan program that can fund both the purchase price and rehab cost, based on the projected value of the home upon rehab completion. The goal is for the buyer to quickly refinance to a conventional loan with very little cash out of pocket.

I’m currently seeing a lot of custom homebuilders buying distressed properties, repairing them and returning them to the market place at a nice profit. It’s a huge benefit to our community to have these houses flipped, instead of just sitting empty.

It’s also a great time rehab a bank-owned property and turn it into a long-term rental investment property. Very rarely do you find a market that allows an investor to purchase a property for pennies on the dollar that provides instant cash flow and returns on investment ranging from 20 to 75 percent. But it’s happening in today’s market.

The real estate bubble may have burst, but there’s still significant opportunity for solid investments — maybe more so than ever.

Walt Hannawacker Mortgage Planner/Area Manager Lic# MLO-143497

The Legacy Group Silverdale, WA

109 Olding Rd Suite 203 Bremerton, WA 98312 360-434-7777 or wes@soundwestllc.com

360.698.6467 walterh@legacyg.com

October 2011 Kitsap Peninsula Business Journal•KPBJ.com 25

The Port Gamble S’Klallam Tribe has announced plans to construct a brand new facility to replace the existing Point Casino. Construction on the expansion will begin late summer with project completion expected during the first quarter of 2012.

“The Point Casino is a vital business and this is an important step in nurturing its growth,” said Jeromy Sullivan, chairman of the Port Gamble S’Klallam Tribe. The Point Casino expects to add 60-80 jobs after the new facility is complete.

Point Casino plans include an all-new expanded facility, which would accommodate an events center, upscale casual dining, deli, larger buffet area and additional gaming. Also included will be an expanded parking area, and a sports/cigar bar featuring a cabaret.

“We’ve tried to be very thoughtful with plans for this expansion,” said Leo Culloo, general manager of The Point Casino. “Not only do we want to be good neighbors and attract new guests, it was important to us to listen to our current guests about what they wanted. We’re known for our guest service and with these plans; we’ll be able to offer another layer of valuable amenities.”

During the planning phases of this project, the Tribe worked closely with experts to ensure that there are no significant environmental impacts to the Port Gamble Bay watershed or surrounding areas. For example, the new expansion will be what is known as a “Sprung” structure, a type of building that offers minimal construction waste and is highly energy efficient. A portion of the existing building will be repurposed as office and storage space.

In addition, the project will include other low impact development techniques, such as vegetation buffers and bio-filtration of storm water runoff. Additional mitigation measures – such as tree plantings in riparian areas — will be implemented to minimize any environmental effects during construction.

“Whether it’s the revitalization of Port Gamble Bay or growth of business interests, we strive to make sure we’re doing what we can to protect our natural resources,” said Sullivan.

“For The Point Casino expansion, we’re looking at ways to incorporate as many sustainable building features as possible. These are not only less impactful on the environment, but, in the long run, will save money.”

The Tribe has acquired a portion of the funding for the project through East West Bank.

The remaining funds needed — approximately $5 million — has already been set aside by the Tribe.

The Point Casino is located on the Port Gamble S'Klallam Tribe reservation in Kingston.

Opened in 2002, The Point Casino features table games, a restaurant, deli, and the most diverse mix of slot machines of any Washington casino. The Point prides itself on providing its guests with a “family” feeling through comfortable surroundings and top-notch guest service.

KEDA positioning Kitsap for economic development growth

26 Kitsap Peninsula Business Journal•KPBJ.com October 2011

By John Powers, Executive Director Kitsap Economic Development Alliance As I undertake my new assignment as the executive director of the Kitsap Economic Development Alliance, I am delighted to share with the community a bit about the role KEDA plays in advancing job creating economic development opportunities in Kitsap.

KEDA is the Washington State designated lead public — private economic development organization charged with working with local government and businesses to attract investment, grow jobs, and develop economic opportunities throughout Kitsap County (393 spectacular square miles, surrounded by 254 miles of beautiful shoreline, situated on the eastern flank of the West Sound).

Kitsap is home to the very enterprising Suquamish and Port Gamble S’Klallam Tribes, our nation’s third largest naval base, and 250,000 citizens living, learning, working, re-creating and enjoying an exceptional quality of life in some of the most beautiful environs on planet earth. Kitsap plays a strategic role in our national defense, a vital role in the Puget Sound regional economy, and an ever more important role in Washington State’s future. Kitsap is an exceptional community, in an exceptional place, with an exceptional future.

In pursuit of my passion for “economic development”, I have come to know “it” as the crucible in which the essential elements of a healthy, prosperous community are forged together to bring forth a better, stronger, brighter future for all. Essential

elements include: human capital; financial capital; innovation capital; infrastructure and institutional capital; and, social-political capital. Kitsap possesses an abundance of these economic development assets; and, KEDA is committed to collaborating with its many partners, both public and private, to further develop, diversify, connect and leverage these assets to enhance the economic future of Kitsap and the region.

KEDA has an excellent team of experienced economic development professionals who, day in and day out, execute a solid “client based” strategic business retention, expansion, and attraction plan (producing measurable results even in the face of the Great Recession). In the past two years KEDA has assisted nearly 200 businesses in securing over $43M in new business resulting in front line job creation in Kitsap County.

KEDA’s team includes: Kathy Cocus, business development director; Mary Jo Juarez, certified PTAC advisor; and Susan Veach, financial manager and small business advisor.

As executive director, I am honored to lead and support the work of this outstanding team.

KEDA’s strategic investment in economic development activities is guided by a distinguished board comprised of business leaders and elected officials from throughout the County and led by a dedicated executive committee consisting of: Elliot Gregg, CEO Kitsap Credit Union; Julie Tappero, president West Sound Workforce; Jim Carmichael, CEO Kitsap Bank; Russell Steele, CEO Port

Madison Enterprises; Charlotte Garrido, Commissioner Kitsap County; Lary Coppola, Mayor Port Orchard; Tom Danaher, PAO Naval Base Kitsap; and, Ed Stern, Councilman Poulsbo. I invite you to take a closer look at KEDA’s work by checking out what I consider to be one of the finest, most comprehensive, economic development websites in the country – www.kitsapeda.org – and let us know how we can be of service to your business.

As I assume my responsibilities, I want to acknowledge the outstanding work of my predecessor, Bill Stewart, a real economic development pro, who has left some awfully big shoes to fill. Our team will continue to do our very best to build upon Bill’s many contributions and valued legacy.

Finally, I want to thank the board of directors for inviting me to become part of the Kitsap community and to work with KEDA’s many partners, public and private, in advancing the critical mission of the Kitsap Economic Development Alliance – a mission to retain, expand and attract jobs and capital investment to strengthen and enhance economic opportunity and quality of life throughout Kitsap County.

Please feel free to contact me directly to become involved, at 360-377-9599 or powers@kitsapeda.org.

Frequent buyer reward program rebranded, relaunched in Kitsap Kitsap-based frequent buyer rewards program formerly known as Family Bundles has been rebranded in the past few years and relaunched in Kitsap as the Frequent Buyer Rewards Card. Since the relaunch eight months ago, the dozen participating businesses in the county have processed more than $93,650 in retail sales, according to founder and CEO Kim Vogler.

“So far this month, in Kitsap County alone we have processed over $14,000 in retail sales among just nine active members of our coop,” Vogler said in mid-September. “That’s $14,000 that stays in our community.”

More than 900 consumers are enrolled in the program statewide, which pays them back three percent every time they shop at one of the member businesses in any area including outside of the county. They can redeem their rebate at any of those retailers, who also receive back a percentage of transaction fees for the cards they issue.

The idea started about 11 years ago under a different business model but was rebranded after the company launched in other areas. A major software upgrade was done in 2008, and after completing the primary launch in Clallam County, Vogler said the co-op has made a renewed effort to focus on Kitsap.

Merchants pay a one-time setup fee to use the software and the hardware for the card, which can also be sold as a gift card and converted to a rewards card once the money is spent. Vogler said participation in the program helps businesses reduce overhead costs because of the extensive advertising they get through the co-op and reduced transaction fees when customers use th e coop card instead of their credit card.

Member businesses can access a detailed database that shows what area the customers are coming from, their frequency of participation and other details, and they’re billed based on how much their customers spend.

“It’s like a referral program with a financial reward for consumers and the merchants,” Vogler said.

Joe Higbee, owner of Talk’s Cheap Wireless in Port Orchard, has been a program member since the beginning and said it puts a small business on a more equal footing with big retailers.

“It gives the small guy like me the opportunity to have a loyalty program just like Office Depot,” he said. “I can give somebody a rewards card for Talk’s Cheap.”

He said he’s had several new customers come in because of the program, and he’s given out many cards himself. “The more businesses get involved, the better is going to get,” he said.

For Glen Davis of Bremerton-based Legendary Portraits of Manette, part of the advantage of the program is networking.

He’s been participating for about five years and said he sees it both as a benefit to the clients and to the businesses.

“My clients have enjoyed having the card and getting cash back to spend at any of the businesses,” he said, adding that he got a $28 check in his very first month. “It’s the best idea I’ve seen coming down the road…

It pays you back over the long haul.”

For more information about the visit www.frequentbuyerrewardscard.com.

Northwoods Lodge earns 13th perfect survey rating

Bainbridge Island’s Dwyer becomes a ‘free agent’

Northwoods Lodge in Silverdale has again received a deficiency free rating outcome for its annual state survey inspection. Northwoods Lodge has earned statewide recognition as the recipient of its thirteenth perfect state survey score. This is a rare accomplishment, almost unheard of in the state of Washington.

Representatives from the Aging and Adult Administration, and the Department of Social and Health Services (D.S.H.S.), recently conducted the unannounced survey, which is the same process that has cited numerous nursing homes for their inability to provide quality and safe care to their residents.

Washington State is recognized as having the toughest regulatory system in the country, which makes this achievement even more remarkable. During the inspection, the state survey team looks at many aspects of quality issues such as resident care processes, staff/resident interaction, and the physical internal environment. The state team uses an established protocol, conducting medical record reviews and interviews from a sample of residents and family members about their life within the nursing home.

They also interview caregivers and administrative staff.

The survey team consists of trained inspectors, including at least one registered nurse. This team evaluates whether a nursing home meets the individual resident needs. When an inspection team finds that a nursing home does not meet a specific regulation, a deficiency citation is issued. A deficient facility is then given a period of time to make corrections and a follow-up survey occurs. If a facility fails to comply, there is a potential that the state will place the facility in a stop-placement which could ultimately result in the closing of the facility.

Nursing Home regulations encompass a wide aspect of resident and facility life including: specifying standards for the safe storage and preparation of food, protecting residents from physical and mental abuse or inadequate practices. There are over 450 regulatory standards that govern nursing home administration and nursing practices.

Administrator Melissa Halverson is thrilled for the staff. She states, “The Health Care industry is a demanding business. This is especially true of long term care. The staff provides excellent care throughout the year and for them to have their efforts recognized in this way is wonderful. Owners Rick and Leslie Krueger are equally proud of the staff ’s accomplishments at Northwoods Lodge.

They state, “24-hours a day our employees strive to provide the best in care and services to our patients. This zerodeficiency award definitely reinforces their commitment to excellence, and our confidence in their abilities. This is a great achievement in a very challenging and demanding business.”

For more information call (360) 6983930. or visit www.encorecommunities.com.

By Rodika Tollefson When Kevin Dwyer started his job as the executive director of the Bainbridge Chamber of Commerce 10 years ago — just a few days before Sept. 11 — the chamber was located in a small space in a building that no longer exists. Neither did at the time developments like Harbor Square.

Much has changed on the island throughout the decade, and in September, Dwyer himself made a change. Leaving his post with the chamber, he became, in a way, a “free agent” — looking ahead to new possibilities and a way to use his background as a veteran of the publishing industry and a chamber executive.

“I felt it was time to move into a new direction, maybe do something different and use other skill sets,” he said. “…It’s a risk but the economy is not a good reason to stop taking risks.”

Dwyer knows well about risks. He has been involved with several startups, including as the founding editor of Washington CEO magazine (which went out of print a few years ago). A former journalist for more than two decades, he has covered all sorts of businesses as well.

One of his stints was as the business editor for a new section created by the Kitsap Sun, which in turn led to his new career outside of the newspaper industry, first as the director of marketing and recruitment for what is now the Kitsap Economic Development Alliance (KEDA).

“It was a nice transition. I was still doing some writing but also recruited some businesses and helped market Kitsap County as an economic sphere,” he said.

Among the businesses he recruited was TeleTech, which opened a call center in Bremerton.

“It was a fun era,” he said.

Ironically, Dwyer was one of the finalists competing to succeed Bill Stewart who recently retired as the head of KEDA.

After taking the helm of the Bainbridge chamber, he never stopped recruiting — in this case, for new members. During his 10 years, the chamber grew to 1,000 members at its peak, not bad considering there are about 2,500 business licenses on the island.

“People on Bainbridge Island perceived us as an effective, efficient, fun organization, the place to be for information and news,” he said.

To keep up the pace with the information, Dwyer’s job became to stay ahead of the curve. He attended city council meetings, planning meetings, land use meetings — in other words, a lot of meetings. And he wasn’t afraid to advocate for the interests of the members.

“He was a great face for the chamber in the business community. He attended a massive number of meetings,” said Charlie Frame, a retired mortgage company owner who has worked with Dwyer at the chamber for nearly the entire time. “…He really devoted himself to business issues and he was concerned about the island.”

Dwyer was well-known for speaking out about the Winslow Way project, among other things, to make sure business interests were protected. He said often times, governments don’t think about the impact their decisions have on small businesses so it was up to the chamber to step up to the plate.

“A lot of times small businesses like small retailers get painted with the brush of being corporate America and that they have deep pockets and can afford (extra costs). They can’t, they’re just getting by,” he said. “Local governments sometimes get in the way of allowing those businesses to succeed and a lot of times they (government officials) don’t realize it.”

Several new island events have Dwyer’s signature. He’s helped expand the annual July 4 festival, which attracts about 20,000 people, and added several other events as a way of increasing the chamber’s operating funds.

“He was instrumental in increasing the revenues. The chamber is in great financial shape, especially compared to other organizations,” said Chris Miller, a chamber board member and former president.

An island resident for more than 20 years, Dwyer said he’ll miss being out in the community and “rubbing shoulders with people.” But he’s far from being ready to retire, so he’s looking ahead at new opportunities.

“I still have a lot of gas in the tank,” he said, adding that he’s considering becoming an entrepreneur to do consulting and other work. “…I’ve had a great board and great people to work with but it was time to move on.”

October 2011 Kitsap Peninsula Business Journal•KPBJ.com 27

28 Kitsap Peninsula Business Journal•KPBJ.com October 2011

Protecting your company if you use telework

By Julie Tappero, President West Sound Workforce The benefits and cost-savings of allowing employees to work from home have received much attention — it cuts down on commuting expenses for staff as well as overhead within your own office, and provides your employees with moraleboosting work-life flexibility. In my own company, we’ve allowed several employees to telecommute for a variety of reasons— physical disability, an ailing spouse who couldn’t be left alone, a new baby, a severe allergy to fragrances. In all of these instances, we were very pleased with the success of our work-from-home arrangements. But telecommuting also comes with risks — chief among them, security issues and liability issues, on top of the issues that naturally crop up when managing someone who isn’t physically in the same location as you.

One recent case, Sandberg v. JC Penny Co., in particular caught my attention. A woman who primarily worked out of her home as a custom decorator and saleswoman of bedding and window treatments claimed that when she went into her garage to retrieve some fabric samples, she tripped over her dog and fractured her wrist. Initially, a Workers’ Compensation Board in Oregon denied her claim for workers’ compensation benefits, but this ruling was reversed by an appeals court. She argued that because she was required by her employer to work out of her home, hazards within her home automatically qualified as work environment hazards. Now that her case has been sent back to the Workers’ Compensation Board, it appears she has a strong chance of winning.

Some of the benefits of allowing employees to telework lose their appeal when weighed against the fact that employers lack the control over employees’

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environments and activities that they have when people work in-office. It is clear that risk management is an extremely important element of any successful telework set-up.

Telecommuting truly is an excellent option for companies and their employees, but only if a business takes the proper steps to protect itself.

If possible, it’s best to only allow employees you know well and who have an established history at your company to work from home. After all, trust is a huge component of any telecommuting set-up.

You must trust your employee to maintain a safe office environment, to complete tasks unsupervised, and to accurately report their hours. While there are obviously measures you can take to ensure that these things happen, you’ll protect yourself from potential fraud or other problems if you only offer this privilege to staff who’ve proven you can rely on them.

Additionally, if you allow hourly workers to telecommute, make sure you have a program in place that they can log into while working to track all of their time, to prevent fraudulent overtime and hours claims.

It’s not uncommon for companies to offer a telework option only to long-term or high-performing employees. Keep in mind, though, that if this is the case, due to the Americans with Disabilities Act, you may have to provide this option to workers who do not meet the long-term/highperforming criteria, if they are disabled and request accommodation.

It is critically important that an employee’s home work space is located in a safe, clean, controlled environment. You should be directly involved in selecting the space where a telecommuting employee will work, and in setting up that area so it is as ergonomically correct and safe as your normal office space. It should be well-lit and ventilated, large enough to comfortably accommodate your employee and any equipment they will be using, and free of clutter and physical obstructions. It should have enough electrical outlets to safely power all of the equipment they need to work, and all wires and electrical cords must be kept secured and out of the way.

Once the workspace has been set up, thoroughly document it with photos.

As with almost all employment-related issues, clear policies and guidelines are your best protection. You should have a detailed and very clear outline of your expectations for telecommuting employees, and guidelines that address any potential safety issues — all in writing.

Employees who work from home should be required to sign these documents to indicate that they understand and will follow your safety and security requirements. This agreement should state that home workers will be covered by workers’ compensation laws only if they are injured during the course of performing their job duties. As an additional step, you should periodically reassess your telecommuting employees’ work spaces (and document your assessments, preferably with photos) to ensure that they continue to meet your safety requirements.

Some companies go so far as to make telecommuting employees sign an agreement that they will not allow children, family members and pets in their home workspace. Creating a policy of this type is a very good idea, as it further reduces risk of injury, as well as security risks — which we’ll address next.

Technological security risks are a major concern when you allow an employee to work outside of your normal office space.

Protecting the privacy and integrity of company data and networks is a high priority when employees are working outside of the office.

For starters, you should always have a detailed acceptable use policy regarding the use of computers, company data and online media, whether or not you have employees who work from home. If you do have home workers, this becomes even more important. Your staff needs to sign this policy, and it is important to update it yearly, or whenever you implement new technology, or new ways of using technology.

You should provide telecommuting employees with company-issued equipment, rather than having them use their own computers or personal technology for work. Have an IT expert ensure that their network is properly secured, and their machine is protected by firewalls, antivirus software, failed log-on

lockout settings, etc.

If your company blocks employees from accessing certain sites from work, block those sites on your telecommuting employees’ work machines too. Additionally, telecommuting employees should not be set up as administrators on their work computers, to prevent them from installing non-work related programs or otherwise harming the machine. Instead, have your IT staff remotely handle updates or changes.

If you’re providing employees with laptops, you may also want your policy to prohibit the use of that equipment in unsecured environments, such as wireless networks available at public locations like coffee shops (unless that interferes with the work they need to perform).

According to data released by the Nemertes Research Group in 2009, as many as 71 percent of U.S. companies offer full-time or part-time telecommuting options to their employees. As the pressure of an uncertain and struggling economy continues to bear down on us for the foreseeable future, the flexibility and costsavings offered by telecommuting will ensure it remains an appealing option for businesses to pursue. My own experiences with providing work-from-home arrangements in my company were all extremely positive. But part of the reason that was the case is that we made sure to implement all of the measures necessary to protect ourselves and ensure the safety of our employees and data. The chances are high that if you do the same, you’ll enjoy an equally positive experience!

(Editor’s Note: Julie Tappero is the President and owner of West Sound Workforce, a professional staffing and recruiting company based in Poulsbo and Gig Harbor. She can be reached at julie@westsoundworkforce.com. View her LinkedIn profile at www.linkedin.com/in/jtappero.

The recommendations and opinions provided are based on general human resource management fundamentals, practices and principles, and are not legal opinions, advice, or guaranteed outcomes.

Consult with your legal counsel when addressing legal concerns related to human resource issues and legal contracts.)

West Sound Workforce 13 years in business 100 years of combined recruiting experience A century’s worth of staffing expertise Kitsap County

(360) 394-1882

Gig Harbor Office

(253) 853-3633

www.westsoundworkforce.com

Burnett signs new film contract Amy Burnett has signed another six month contract with BKAT to air her Bremerton film series “Amy’s City Review”. The half hour show airs on channel 12 or WAVE 3 every Sunday at 6:30 p.m. Each show covers a dozen or more different topics from historic documents to festivals to sidewalk interviews.

“Amy’s City Review” has aired every Sunday for over three years.

Her extensive downtown filming has captured almost every street project and event – often introducing photos from historian Fredi Perry’s archives to make present-day comparisons.

This is Burnett’s third televised program series. Previously she produced “Art with Amy” and “Flashbacks.” “This will be my last “City Review” contract,” Burnett said, “I may submit a re-run series of the old shows, but now I would like to look forward to producing serious Amy Burnett art documentaries or even something about downtown birds.

Burnett is the owner operator of Amy Burnett Gallery at 4th and Pacific in Bremerton, curator of the popular Pyrex Museum, writes for WestSound Home & Garden Magazine and relaxes by redesigning furniture and rescuing vintage kitchen ware.

McKay Bevers to succeed Heath at American Red Cross Janet Heath, the director of the West Sound office of the American Red Cross Serving King & Kitsap Counties, retired from service at the end of September, and has been succeeded by Karen McKay Bevers.

“I’ve seen my share of local and national disasters and have learned much from the volunteers who provide hope and help to people in need locally, across the nation aand around the world. My work with the Red Cross has been very rewarding,” said Heath, who has served in the local leadership role for more than eight years. “The West Sound community will be in very capable hands with Karen.”

“Janet has been an exceptional leader,” said Randy Hutson, CEO for the Red Cross chapter. “She became the West Sound director shortly after the Kitsap County Red Cross merged with the King County Red Cross. This required a delicate hand to maximize the strength of the combined group and at the same time maintain a local presence and grow support. Janet built a strong advisory group of local community leaders and ensured the Red Cross remained an active participant in the community.”

McKay Bevers was named the new West Sound director. She has served on the Red Cross West Sound Leadership Council for four years and has a strong understanding of the organization’s mission and importance in the community.

“We’re thrilled to have Karen join the Red Cross team,” said Hutson. “Her passion for our humanitarian mission combined with her business-savvy and creativity will ensure the Red Cross continues to provide outstanding service in Kitsap and North Mason counties for years to come.”

Previously, McKay-Bevers served as the director of marketing and public relations for the Peninsula McDonald’s Restaurants. She also spent eight years with DDB Seattle, and in 2008, was named a member of Kitsap County’s “40 Under 40,” a recognition of outstanding young business professionals.

LK’s Auto Repair welcomes experienced mechanic

Bainbridge Island Rotary and PALS to host panel discussion Bainbridge Island Rotary and the Passionate About Learning Society (PALS) will host a panel discussion by Bainbridge Island educators of the current New York Times best seller “That Used to Be Us – How America Fell Behind in the World It Invented and How We Can Come Back” by Thomas L. Friedman and Michael Mandelbaum. This is the first of the Rotary and PALS Lecture Series, which is open to the community at no cost. This event will be held at the Bainbridge Island Museum of Art, 554 Winslow Way E, Bainbridge Island, from 7 to 8:30 p.m., Oct. 11.

The Bainbridge Island Rotary Club and the Passionate About Learning Society (PALS) are continuing an acclaimed first year of programs dedicated to spotlighting prominent educators from the community speaking on a variety of timely and interesting subjects.

There is never a cost to attendees.

For more information, visit www.bainbridgeislandrotary.org; contact Everett DuBois at (206) 898-0767 or Edd4419@msn.com.

Kitsap Peninsula Business Journal’s Annual Event Recognizing outstanding young business leadership on the Kitsap Peninsula.

— Order Your Tickets Today —

Be there when the Kitsap Peninsula Business Journal announces the 40 Under Forty award winners.

Wednesday, October 19, 2011 Kiana Lodge, Poulsbo 5:00 pm to 7:00 pm $25 per ticket Heavy hors d’oeuvres • Cash bar Call 360-876-7900 or 800-733-7990 or e-mail communications@wetapple.com to order your tickets by October 10, 2011.

Sponsored by:

October 2011 Kitsap Peninsula Business Journal•KPBJ.com 29

Keith and Linda Knowlton, owners of LK’s Auto Repair, welcome Lyle Pickering to its team of mechanics. Pickering comes to LK’s with 30 years of experience as an ASE senior master mechanic for Ford vehicles, specializing in diesels. He’s also had Ford factory training in gas and hybrid engines, transmissions, electrical systems, emissions, and driveability. In addition, he’s a factory-trained ASE master mechanic in BMW, Audi, Isuzu, Porsche, Mitsubishi, Hyundai, and Suzuki vehicles.

Linda Knowlton says, “Keith and I always want our customers to feel confident their cars are being serviced by technicians with the best skills and most up to date training possible, and we’ve found that with Lyle.”

For more information, visit LK’s Auto Repair’s website at www.lksauto.com. LK’s Auto Repair has operated in Bremerton for 18 years, with facilities at 5921 Highway 305, Suite 100, since 2001.

Celebrate the Success of Kitsap Peninsula’s Young Entrepreneurs

30 Kitsap Peninsula Business Journal•KPBJ.com October 2011

Eagle Harbor Holdings grows patent portfolio with 7 key patents issued Bainbridge Island-based Eagle Harbor Holdings, LLC (EHH) announced that the U.S. Patent and Trademark office has issued the company six new continued patents, and given Notice of Allowance on a seventh. The primary focus of six of these new patents is home and vehicle entertainment systems using wireless technologies like Bluetooth or Wi-Fi; the seventh is related to vehicle safety. These new patents cover the following: Patent 8,006,117 basically describes a simplified pairing process for cell phones and MP3 players for cars and home entertainment. An example would be a cell phone or MP3 player connecting to an audio system, where the audio system automatically searches for the phone or MP3 player, connects it, checks to make sure it is allowed, and loads an application that allows the audio system to run either the cell phone or MP3 player.

Patent 8,006,118 normally describes a portable device like a cell phone wirelessly connected to a vehicle audio system, where the audio system is designed to detect a failure in the connection with the cell phone, and automatically searches and connects a new cell phone and runs a new application to control the new phone. In addition to a detected failure, the process of changing from one cell phone to another by a user is described.

Patent 8,006,119 generally describes an audio system, such as a car audio system, designed to automatically and securely interact with numerous discovered devices ranging from cell phones and MP3 players to personal computers, internet routers and home appliances. A user could download media from the personal computer, and securely control a home security system or even a garage door opener from the car audio system.

Patent 8,020,028 in general describes an application management process for audio systems including home audio and vehicle audio systems. In addition to automatically detecting and connecting to portable devices like cell phones or MP3 players, this invention describes secure steps used to prevent unauthorized devices, applications or data from gaining access to the vehicle electronics – a major concern for the auto industry.

Patent 8,027,268 essentially describes a car audio system with a built-in Bluetooth radio configured to securely connect two different device types to the car audio system simultaneously, such as a cell phone and an MP3 player, and operate each using different applications.

Patent Application 12/258,215 – This invention has received Notice of Allowance and will issue around Oct. 15, 2011. Notice

of Allowance signifies the final stage of Patent Office acceptance prior to formal issuance. The patent generally describes a car audio system connected to a wired audio source, such as a cell phone connected by a USB cable to the audio system. The audio system also includes a Bluetooth capability for connecting a second device, like an MP3 player, using a process that automatically detects and securely connects it to the vehicle. An application is automatically loaded and plays music.

Patent 8,001,860 describes an automatic alignment system for stereo vision apparatus used in vehicle safety systems.

David Marsing, EHH’s chief strategy officer, stated: “These latest patents, along

with our 23 pending patent applications, enhance an already existing segment of our portfolio, and will be key to the future of what is now referred to as the ‘Connected Vehicle’. In harmony with our automotive partners and customers, we strive for the best possible innovation, engineering, product solutions and intellectual property that ultimately benefit the end-user. Our founders, Dan and Joe Preston are considered pioneers in the technology that the auto industry is currently using, with their inventions having been installed in tens of millions of vehicles to date. As we grow we continue to define advanced nextgeneration integrated solutions. Expect to see more newly issued patents in the coming months.”

Boxlight wins Commercial Integrator ‘Best’ award for Lamps 4 Life Program Boxlight has been selected for the Commercial Integrator Magazine ‘Best’ Awards for its Lamps 4 Life replacement lamp warranty program.

The inaugural awards program recognizes solutions and products in the commercial integration audio/video installation industry. Over 10 categories were represented varying from audio, enhancements, digital signage, information technology, security, and dealer and installer aids — the category in which Boxlight was named winner was under warranty and service programs.

The Lamps 4 Life program which guarantees replacement projector bulbs for the life of the projector. The warranty program is available on all Boxlight award winning interactive ProjectoWrite and Seattle Series projectors.

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October 2011 Kitsap Peninsula Business Journal•KPBJ.com 31

"Olympic Radiology expanded to a second location in Poulsbo to serve the needs of the medical community. NWCOMMNET provided a secure, reliable, high speed private connection to our main office in Bremerton.

October @ Port Orchard 2011 The Port Orchard Chamber of Commerce is a membership based organization of businesses and individuals working together to promote a favorable local business climate, encourage strong community leadership and support quality of life.

As I pass on the leadership of the Port Orchard Chamber Board of Directors to Desiree Steffens Greg Oldham, I would Port Orchard Chamber like to say Thank you 2010-2011 President to all of the Port Orchard Chamber members and to the Board of Directors, for allowing me to serve as your Board President the past 18 months. It has been a very interesting, fruitful and at times challenging time-with my term being extended by 6 months, my buying a new business and with my husband’s illness... in addition to the challenges of running a modest sized Chamber in a small town during economic hard times! But with the support of many wonderful people it has been a pleasure and an honor. Please use your Chamber membership wisely-attend luncheons as often as you can, participate in educational seminars, take advantage of marketing and promotion opportunities, stop by networking Business After Hours and join a committee. And Please, join us October 14th at McCormick Woods as we install new Board members and officers and present the Man and Woman of the Year and the Small Business of the Year Awards.

www.portorchard.com 360-876-3505

Morning Seminars/Networking

President’s Message

After taking a break for the summer, the Chamber is returning with our Free Mini Morning Seminars/Networking sessions, scheduled for Wed. Oct. 26th and Wed. Nov. 16th at 8 a.m. We expect the first two topics to be on Communication and Using Excel Software. These seminars are free to Chamber members and $5 for non-Chamber members and include coffee, muffins and networking. Call the Chamber office 360-876-3505 for more information.

“T.G.I.G. Cocktails and Dinner with the Chamber” Port Orchard Chamber of Commerce Thank God It’s Friday: Friday, October 14th, 2011, 6 p.m. at McCormick Woods Clubhouse Banquet Room.

Join us for cocktails, plated dinner, silent and dessert auction, awards and installation of our 2011-2012 Board, officers and Chamber Board President Greg Oldham. Help us celebrate and honor the 2011 SK Man and Woman of the Year and the 2011 SK Small Business of the Year. Cocktail entertainment by Rule 62-Jazz Quartet. Tickets are $60 per person or $110 per couple. Or consider a T.G.I.F. Table Sponsorship for $650! Reservations online at www.portorchard.com or call 360-876-3505.

SPOTLIGHT ON A MEMBER Joe Higbee/Talks Cheap Wireless Fans of Joe have been heard saying, “He effortlessly got me what I was looking for in a cell phone service plan. I felt he went above and beyond my expectations,” and “...he has always had everything I needed.

Thanks Joe! You’re the man!” Through it all, Joe has stayed local because he enjoys our small town community and the pleasant people who reside here. He has been married for 27 years and has 3 musically inclined daughters. Joe has been an enthusiastic Chamber member since 2002 and appreciates the friendly staff and event opportunities they provide. Stop by Talk’s Cheap Wireless for all your phone service needs and prepare to leave his store as another satisfied customer.

Thursday, October 13th, 2011, 11:30 a.m.

Location: McCormick Woods Banquet Room, Port Orchard Program: Candidates Forum: City of Port Orchard Mayor Race and City Council Races Join us as we hear from the candidates for our local city government. Mayor Lary Coppola and Tim Matthes, candidates for City of Port Orchard Mayor, will present and answer questions, as will City Council candidates Amy Miller and Cindy Lucarelli running for Pos. 5 and Ben Pinneo and Jerry Childs running for the At Large position.

Our raffle recipient for October will be the SK High School Marching Band who are raising funds for a performance in Hawaii. Our Luncheon Sponsor is Stafford Health Care at Ridgemont.

Please reserve by October 11th. Chamber members are $20 if prepaid and $22 at the door, Non chamber members cost is $22 and they must prepay. RESERVE Today at www.portorchard.com or call the Chamber office at 360-876-3505.

Chamber Committees Serving on a Chamber committee provides members with more exposure, more networking and more client/customer contacts. It also provides an opportunity to be more involved in: the community, legislative activities, networking and education/awareness activities. The Port Orchard Chamber welcomes members into the Military Affairs, Legislative/Economic Development, Shop SK First and Member Services Committees. Contact us at office@portorchard.com.

WELCOME NEW MEMBERS Dragonfly Cinema • J. Gryphon Shafer 822 Bay Street, Port Orchard, WA 98366 206-406-7579 Yellow Book • Julia Koller 760 Commerce Street, Ste 201, Tacoma, WA 98402 253-830-5225 Port of Manchester • Dennis O’Connell P.O. Box 304, Manchester, WA 98353 253-853-7449 dfs Enterprises, LLC • Deborah Seamans 6593 Mariposa Lane SE, Port Orchard, WA 98367 360-301-4889 Amy Miller 7768 Broadstone Place SW, Port Orchard, WA 98367 360-259-4898 BlackLotus Landscaping LLC • Jon Aflatooni 803 Dwight Street, Port Orchard, WA 98366 360-551-5536 Kiwanis Club of Port Orchard • Denise Hoyt P.O. Box 433, Port Orchard, WA 98366 360-874-1212

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Joe Higbee is a Kitsap County native and local businessman who has built a reputation that radiates through online review sites and word-of-mouth referrals. He owns Talk’s Cheap Wireless in Port Orchard, which deals exclusively with Verizon Wireless products. Company services range from personal phone assistance to activations and upgrades. Before meeting success with communication services, this guitar and skiing enthusiast spent the first 18 years of his career exercising his talents at the Puget Sound Naval Shipyard. Fastforward and Joe now totes 17 years of phone industry experience and counting.

He has cultivated a loyal customer base who happily raves about his abili ty to take care of their wide-range of wireless needs.

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Port Orchard aquatic company provides ‘green’ pool solutions

Swimming Pool was part of Aquatic International’s annual Dream Designs. Two other state-of-the-art facilities were featured in the 24th Annual Architectural Showcase Awards: the Student Recreation Center at University of South Alabama and the Cary Street Gym at Virginia Commonwealth University, which is LEED Gold registered.

Another LEED Gold project, the health and fitness center at Washtenaw Community College in Michigan, wan an Innovative Architecture Award in 2008.

“We make the most environmentally friendly, the most nontoxic form of chlorine you can get,” Petsch said.

The Salt Pure method was developed by a company in Australia (TMI Salt Pure owns the rights to it) through electrolysis. It uses natural salt instead of the much-more toxic chlorine, which is expensive to transport and store. A small amount of salt is added to the water in exact quantities, and a special unit in the pump room turns the salt into the sanitizing agent. The water is constantly recycled because the chlorine is converted back into salt (then back to chlorine), and usually more salt is not necessary unless the pool is drained.

Petsch said the company was the first in the country to introduce automated monitoring at commercial facilities. The system, which is self-contained, checks aspects such as temperature, chlorine levels and pH balance and adjusts some measures automatically. It can also send alerts to the customer.

TMI Salt Pure has a total of seven employees as well as half a dozen sales representatives across the country. Locally, the business is headquartered in the Petsches’ Manchester home. Michele runs the business side and Timothy is focused on sales and technical aspects, with their adult children having helped out at one point or another as well. The couple both have corporate backgrounds and once lived in Los Angeles but wanted a smaller community environment where they could raise their family.

“I wanted to live a simplified lifestyle,” Petsch said.

The company was closed to leasing a building in the Mile Hill area of Port Orchard

to consolidate its operations and grow, but the idea was nixed when the economy took a turn for the worse. The couple, however, didn’t give up on the idea of growth. They’ve been talking to investors in hopes to receive an infusion of funds that would allow them to market the company on a wider scale.

“If we only penetrate the U.S. commercial market by one percent, it would be $32 million in sales,” Petsch said.

Already, they have found new ways for the business to continue growing. One new product called Salt Synergy takes the Salt

Pure experience one step further, making the water more pristine by oxidizing it using ultraviolet technology. One facility in Seattle that tested the combination for more than two years ended up buying 16 systems, Petsch said.

“We’re the only one using (the technology) this way,” he said. “Those two products together provide the best commercial water that can be found in North America today.”

Another product they’re marketing through a sister company is used for landscaping and commercial fountains around the country. The plan is to kick those efforts into high gear.

Michele and Timothy Pesch said their boutique business has had limited room to grow until now because of the laborintensive process they have used, but they’re ready for the next step. They hope to grow enough within the next five years so TMI Salt Pure Corp. doesn’t need their attention full-time.

Whatever direction they take, the couple said they plan to continue the close partnership with their clients.“A key ingredient is the educational process and the knowledge we impart,” Michele said.

“That’s the missing link for everybody else.

I think that’s why we’ve done so well.”

October 2011 Kitsap Peninsula Business Journal•KPBJ.com 33

By Rodika Tollefson When Timothy Petsch first swam in a saline pool in Hawaii and could keep his eye open without the familiar chlorine burn, he called his wife, Michele, and said they are going to have a business offering salinepurification systems for pools.

“I have never swum in anything like this before… I told Michele, ‘This is what we’re going to do because it’s going to be popular,” Petsch said.

The couple were blazing a new trail at the time, so the going was tough — but once a few major chlorine companies got into the game of using salt in pools, it became a game changer. Saline pools are popular both in residential and commercial settings and are considered much more environmentally friendly and better for human health.

TMI Salt Pure Corp., the company the couple started in 1990, has never changed its customer service philosophy from day one. They go to great lengths to make sure clients are happy with the performance of their Salt Pure products. In a one example, they flew to Alabama (twice) at no charge to a customer to fix mistakes that were caused by the owners.

“To us, it’s a no-brainer. It will pay in the long run,” Michele said. “It’s a way to do business… although in this economy, it’s more difficult to be this magnanimous.”

She said they’ve set their principles early on and were set on upholding them.

“In the early years, that was hard, especially since we had to discount more to get people to try it out because it was a unique method,” she said. “We’ve never focused on the bottom line, we’ve focused on customer service… Sometimes we thought maybe it was too idealistic and it may get in our way, but it didn’t get in our way.”

One aspect that makes the company unique is its partnership with the customers. TMI Salt Pure shows them how to install the system, along with automated monitoring, and trains them on site. TMI then spends about two months monitoring the system online and providing further training, then turns the equipment over to the customers so they can do their own maintenance. TMI representatives continue to be available for troubleshooting.

“We become their aquatic partners,” Petsch said.

With customers all over North America, TMI Salt Pure has served municipalities, athletic club chains, retirement communities and major hotels, among others. Originally, the company focused on the residential market but has been marketing commercially since 1995. Their biggest pool, at the Mirage Hotel in Las Vegas, holds 500,000 gallons of water and has as many as 2,500 swimmers a day.

Several facilities that use the product have won awards and have been recognized for their sustainability. Recently, TMI’s client Kodiak Island Borough Community

2012 Nissan Versa: A small car for big people

By Bruce Caldwell I can only imagine how annoying it must be for professional basketball players trying to run errands in their Bentleys and Maybachs without being harassed by ardent fans. Although fame provides the wherewithal to buy house-priced cars, there must be times when anonymous transportation would be nice.

Nissan probably wasn’t going after the pro ball player demographic with the revised 2012 Versa SL sedan, but it is a compact car with an amazing amount of front and rear legroom. The space is better suited to NBA guards than centers, but for people in the low six foot range the space is downright luxurious. Mind you, we said the space was luxurious — not that cars priced in the low-to-mid teens will ever threaten luxury brands.

What the 2012 Versa does offer is lots of value, space and fuel economy at competitive prices.

Walkaround: The 2012 Nissan Versa could have worked a licensing deal with Chrysler for the old Dodge Stealth moniker.

The Versa Stealth would be an apt name, because the car’s styling is conservative enough to slip through any crowd. This isn’t a bad thing, as not everyone desires Lamborghini level attention. The simple styling helps the

Versa look ageless — a resale plus.

Our test Versa was a beautiful bright blue metallic. It came with OK seven-spoke alloy wheels, but the P185/65R15 tires looked clown car small compared to the larger diameter rolling stock found on so many contemporary cars.

The front-end styling was simple and even handsome compared to the wild noses favored by many Versa competitors. Fit and finish was good. Door shut and sound were solid. Our tester was a pre-production car and it did exhibit some wind noise around

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34 Kitsap Peninsula Business Journal•KPBJ.com October 2011

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the driver’s door.

Interior: As mentioned previously, the interior legroom borders on fantastic, especially the rear seat. Decades ago I passed for tall at 6 foot 2 inches (my son is 6’ 8” and my daughter is almost my height), so to have a couple inches of extra knee room (with the front seat all the way back) was impressive.

My head just clears the one-piece flocked headliner in the back seat, but there’s lots of shoe room under the front seats. I even fit in the middle position if my feet straddle the very low center hump.

Rear seat room doesn’t come at the expense of front seat legroom, which is just shy of stretch-out. Large, wide-opening doors make ingress/egress easy for all occupants. The Versa has more rear seat legroom than a Mercedes E-Class sedan.

The cloth seats were comfortable with soft headrests. The plastic steering wheel was contoured and reasonably thick with auxiliary audio and cruise controls. The simple gauges were well placed and easy to read. Interior storage bins and door bins were limited, although the glovebox was enormous. Our arm went past the elbow in order to touch the rear of the compartment.

A very large trunk (14.5 cubic feet) matches the spacious interior. The trunk opening is wide and the floor is flat. An oversize pass-through and split folding rear seats enhance cargo capacity and flexibility, although the seats don’t fold very flat and there’s a considerable rise between the trunk floor and the seatbacks.

An obvious cost-cutting measure was

Serving Kitsap County for 30 years

the caliber of carpeting, headliner material, and the preponderance of hard plastic interior surfaces. Engine and road noise were a little more than we’d like, so we suspect sound deadening products were also subject to budget considerations.

Under The Hood: The new Versa sedan is based on Nissan’s V platform. A new inline four-cylinder engine displaces 1.6 liters and produces 109 horsepower and 107 lb-ft of torque in the sedan models.

There is a 1.8-liter I-4 (122 hp/127 lb-ft) for the hatchback models.

Performance was surprisingly peppy for such frugal horsepower ratings. Our top-ofthe-line SL model came with the CVT (constant velocity transmission) instead of the 5-speed manual transmission, but it didn’t seem to hurt performance. Freeway onramp and traffic merging prowess inspired confidence. Switching off the overdrive provided extra kick, but wasn’t really necessary. The engine was a little buzzy and noisy under hard acceleration, but this might have been a function of limited sound deadening.

The EPA rates the CVT-equipped Versa SL at 30/38 compared to 27/36 for the fivespeed manual. Our mostly in-town, short trip driving yielded fuel economy in the low thirties. A peppy car that still gets over 30 mpg on short stop-and-go trips is impressive.

Behind The Wheel: Sensible and practical don’t often equate to fun, spirited driving experiences and that was the case with the 2012 Versa SL. The Versa is pretty nimble and easy to maneuver, which makes it an excellent city car. The highway ride is decent. The suspension is comfortable and controlled, but engine, wind, and road noise will remind you how affordable the Versa is.

The Versa SL is a pleasant car to drive and ride in. It exceeds expectations, but it’s not a 370Z. Whines: More interior storage in the form of a better center console would be nice. A performance wheel/tire option could boost the car’s conservative appearance.

Bottom Line: The 2012 Nissan Versa SL goes well beyond mere automotive appliance levels. It excels in interior/trunk space, fuel economy, and peppy performance. It’s comfortable, affordable, and inoffensively styled. It’s not an aspiration car, but it’s a commendable car.

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Toyota Avalon: An unpretentious, value-priced Lexus

Basically, the Avalon is eight inches longer than Toyota’s top-selling Camry and roughly the same size as the Ford Taurus, Chrysler 300, and Chevy Impala.

Additional brightwork seemingly constitutes the major revisions, which include a slightly wider grille connecting the headlight clusters with bolder chrome trim, utilizing what’s known as light-pipe design — creating the impression of illuminated tubes at night. The fog lights get some new chrome trim, and thicker, more obvious chrome is added to the door handles, side windows, and the slightly smaller, more sculpted side mirrors. There’s also a thick strip of chrome at the bottom of the doors, above the prominently contoured sills.

The taillights have been restyled to reduce rear turbulence, with other subtle styling details optimized to limit wind noise inside the Avalon, including reshaping the windshield pillars and moving the wipers under the hood line.

Interior: The Avalon’s upgraded interior is first rate, and where most of the changes for 2011 occurred. The dashboard and much of the cabin have been restyled, adding some new standard features. The two-tone fit and finish are impeccable, with pleasing materials, ergonomically functional controls, and lots of storage.

The Optitron instrumentation is large, backlit with soft white light, and easily readable. The sliding doors covering the audio and climate control switches are history, replaced with a more conventional array of visible buttons that are more centralized under an LCD information display in the center of the dash that’s larger than previous models. The display offers a wide range of information, including outside temperature, inside temperature settings, date, and fuel range, in large, easy-to-read lettering that’s not adversely impacted by bright sunlight. The optional navigation system also offers an updated database.

The front seats are large, well-bolstered, and very comfortable. The reclining back seat is downright spacious, with a wide middle space, and flat floor all the way across.

The interior’s serene ambience and functionality reminded me of much more

expensive cars, and overall, I’d rank the interior at the top of its class.

The Avalon is also the easiest vehicle to get in or out of I’ve ever encountered. The door openings are large, with three stop positions rather than the usual two.

Under the Hood: Both versions of the 2011 Toyota Avalon come with a 3.5-liter, dual overhead-cam V6, with variable valve timing, that puts out 268-horses with 248 pound-feet of torque. It’s married to a very smooth 6-speed automatic transmission.

Behind The Wheel: Although some driving enthusiasts might call it vanilla, there isn’t much about driving the Avalon I didn’t

like. Overall it’s pleasant, comfortable, and smooth under all road conditions, riding about as comfortably as any car I’ve driven, and seemingly almost impervious to the worst roads I exposed it to.

The best way to describe driving the Avalon is to say it’s a quiet, tranquil experience that approaches serene — without being numbing. However, when you push it, it does respond. While it isn’t a sports sedan, it’s anything but lethargic, delivering surprising acceleration, more than competent handling, and excellent braking.

At 20/city and 29/highway, the Avalon’s fuel economy is impressive for a sedan this size. It equals the Camry and bests many smaller, mid-size V6 sedans, including the Chevy Malibu, Ford Fusion and Nissan Altima.

Whines: The coat hooks, of all things, should be further forward, so clothes (dry cleaning especially) on a hanger can drape freely in the ample space between the front and rear seats. The way the hooks are positioned, hanging clothes bunch up and get caught between the seat bottom and the door.

Bottom Line: The 2011 Toyota Avalon is very easy to like and even easier to enjoy.

It’s a great mix of comfort, flexibility, luxurious interior space, and low operating cost — with and extensive list of standard equipment. As it did the first time, it left me wondering why anyone wanting a smooth, quiet, roomy, fairly luxurious full-size sedan would pay more than an Avalon costs.

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October 2011 Kitsap Peninsula Business Journal•KPBJ.com 35

By Lary Coppola It’s been awhile since I’d driven the fullsize Toyota Avalon, but the last time I did, I called it a “budget Lexus,” saying it’s every bit as good, for a lot less money. After driving the 2011 Avalon, my mind hasn’t changed.

The Avalon was supposedly redesigned for 2011, but its V6 engine, 6-speed automatic, and other mechanical components are all carryovers. I’d term it a mild updating, with the interior getting most of the attention.

The 2011 Avalon model line-up has been reduced to just two models — what I’d classify as the base “loaded” version, and the “really loaded” Limited model (our test vehicle). And while it may not be considered “exciting” by the usual automotive aficionado standards, the Avalon excels in smoothness, easy operation and basic, uncomplicated functionality. It doesn’t pretend to be anything it isn’t, while offering much more than many sedans that cost a lot more.

Model Lineup: The “loaded” base Avalon ($32,595) comes standard with leather upholstery, the full range of accessories such as full-power front seats, dual-zone climate control with cabin air filter, steering wheel-mounted audio and climate controls, power moonroof, autodimming rearview mirror with compass and Homelink universal transceiver, fog lights and 17-inch alloy wheels.

The audio system has nine speakers, a six-CD changer, XM satellite radio receiver, USB connector and Bluetooth connectivity.

Options include heated front seats, memory seats with heating and cooling, and a premium, 660-watt, 12-speaker, JBL Synthesis audio system. The Navigation System with JBL Audio uses a 4CD changer and includes a rearview camera. Dealer installed options include remote start.

The “really loaded” Avalon Limited ($35,835) adds a proximity key with pushbutton start, HID headlamps, a woodand-leather-trimmed shift knob and steering wheel, rain-sensing windshield wipers and a power sunshade for the rear glass. Options for the Limited are limited to a touch-screen navigation system with voice control, rearview camera; and special paint colors.

Safety features on all Avalons include front-impact airbags, driver’s knee airbag, seat-mounted side-impact airbags for front passengers, side-curtain head-protection airbags for outboard passengers front and rear and active front seat headrests. Active safety features include Vehicle Stability Control (VSC), anti-lock brakes (ABS) with electronic brake-force distribution (EBD) and Brake Assist, and a tire pressure monitor.

Walkaround: Although the redesign changes are less than dramatic, the differences are in the details, since the Avalon’s profile and proportions haven’t really changed. While the Avalon certainly isn’t flashy, its styling is elegant, and somewhat reminiscent of stately 1950s and ‘60s era European sedans.

Editor & Publisher Lary Coppola Advertising Sales Dee Coppola Creative Director Steve Horn Webmaster/IT Greg Piper Graphic Design Kris Lively Office Administration Jennifer Christine Web Host Piper Computer Services Contributing Writers Rodika Tollefson Adele Ferguson Don Brunell Kathleen Byrne-Barrantes Dan Weedin Ron Rada Julie Tappero Paula Bartlett Jason Parker

36 Kitsap Peninsula Business Journal•KPBJ.com October 2011

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It’s all about jobs... Hello?

By Rick Flaherty, President & CEO Leader International Corporation If I have ever been witness to a failed President, Mr. Obama takes first place in every category. Now, let’s get this straight — I’m talking about the ultimate prize for failure — not the coveted award for success. With his approval ratings plummeting almost daily (not much better for our Republicancontrolled Congress) and his Administration’s complete lack of ability to manage job creation, the debt crisis, our country’s check book and facing international and our own cynicism here at home whenever he loathes the other side of the isle for everything that is wrong with America—we are witnessing the beginning and the end of “Yes we can”!

I believe the new slogan is “Why we can’t”.

Confidence is the supreme antidote to much that ails America but how can any American truly delight in confidence for our future when we experience the daily whispers across the isle of blame and gamesmanship from our purported leaders.

This isn’t about proving something — it’s clearly about saving something… our damn country from ruin, another recession or a long-term stagnant and jobless economy.

Regardless of your party affiliation or feelings about more debt — take a play out of the most successful Economist of all time and follow the Keynesian playbook — government spending will cure the economy when the private sector is stagnant and confidence is so stuck that spending essentially is halted. Don’t drink the Tea… it’s spiked with falsehoods and misguided Party thinking.

Debt is a long-term problem and today we have the lowest interest rates in modern times—Congress should be using this to their advantage…borrow at historically now near zero interest borrowing costs and spend our way out of this mess. The economy will

grow, tax receipts will increase and our debt will be paid down — add to this the fact that the government is now set on a path to cut wasteful and unnecessary spending — particular focus should be on those evergrowing entitlements. Additionally, y es, it is time to close those stupid loopholes that benefit only a very few. Even Warren Buffett and Bill Gates would agree.

The central role of government—no matter whether we like it or not and because the alternative is an ever-greater unemployment dole, an extended period of stagnant growth and a spiral into economic chaos that we can hardly afford to even think about — is to use its scope and economic might to support the economy in dire times.

Did we not learn anything from the Great Depression and Japan’s lost decade?

So why can’t we seem to gain traction and get out of this economic tidal event?

Here’s a hint: the blame game or in plain speak… it ain’t my problem!

Did you watch the Presidential address on jobs? My bet is the Republican response will be to see any plan offered up by President Obama to create jobs as politically beneficial to simply blame the impaired economy on Obama and take no position at all. Why act to help a dysfunctional and scrambling President with a Get Out of Jail Card when one can simply make the situation worse by continuing the political dysfunction. The Republican disapproval ratings are so low now that the only possible winner would be the President.

We are paralyzed by our own dysfunction — not yours and mine — but by those who we elected as our leaders. But remember, we elected those leaderless individuals.

Will we see more than the usual tax credits for businesses to help them hire, expand and grow our nation’s struggling business community? Not likely. This one is free of

debt burden and is nothing more than political babble. Who needs or can use tax credits when we hear horror stories of years of losses stacked up against little to no growth, minimal if any profits and businesses that continue to struggle under the weight of an economy stuck in the mud. But I’ll bet we hear our enlightened President offer more tax credits as the primary stimulus to get small business to hire and expand their operations.

And, oh yes, let’s not forget infrastructure jobs that benefit only one area of employment— and it’s not the jobs the vast majority of unemployed Americans are qualified for.

Come on down, Mr. President…this Schrammie is for you! Yes, I’m sure even Ken Schramm would delight in handing out his infamous Schrammie Award to President Obama for his enlightened approach to solving our jobless economic woes.

But who knows, maybe I’ll be surprised and Mr. President has something unique and bold up his sleeve… but then, oh my, we will have to watch our Congress boo and hiss, and draw lines in the sand with quips of ”not on my watch!”

So, can we? You bet we can. Simply use the power we individually and collectively have — close up your wallets to political donations and vote out those who can’t seem to get the fact that we can — that being the changes that you and me and every legal American citizen can make by simply using the greatest power democracy offers: vote and openly express your concerns by writing our legislators in both Washington’s.

We need a new injection of confidence and that may take firing the President and many members of Congress. In the world of business if you don’t perform the board of directors fires you. We are the board of directors of our country and I believe it’s time for new leadership.

I’ve had enough…how about you?

Restoring confidence is Job One

By Don C. Brunell, President Association of Washington Business Looking at the opinion polls, it’s easy to be depressed these days. Three out of four likely voters say America’s on the wrong track, consumer confidence has tanked, investors are sitting on the sidelines and job growth has stalled.

In short, this is not a recipe for optimism.

In his most recent survey, Seattle pollster Stu Elway found that voter confidence has sunk to an all-time low, the worst he’s seen in 20 years.

Elway writes: “Economic recovery is a little like the five‐day weather forecast around here this year — the sun is always five days away. Two years ago, 68 percent of

Washington voters thought there would be “noticeable improvement” in the Washington economy by now. Last week, 72 percent said improvement was still more a year away and 39 percent said it would be at least two more years before they saw improvement.”

National pollster Scott Rasmussen’s latest survey shows that 18 percent of Americans believe the economy is getting better while 64 percent say it is getting worse. Among investors, 21 percent think things are improving while 63 percent disagree.

That lack of confidence is having an impact on our state’s economy as well. Tax revenues for the first quarter of the new two-year budget are expected to be

Trillion dollar budget cuts mean major setback to the campaign for jobs

$1.5 trillion in savings.

But in the end, we will recover if voter confidence is restored and our elected officials remove barriers to economic expansion.

Irwin Stelzer, a senior fellow and director of economic policy studies for the Hudson Institute, recently wrote, “The American economy still produces more goods and services than the next three largest economies ( Japan, China and Germany) combined. And is likely to hold that position as successive Japanese governments wrestle with decades of stagnation, China attempts to cope with the problems created by its centralized economic management and currency manipulation, and Germany wallows in a eurozone financial crisis that seems to worsen by the day.”

Stelzer notes that America’s per capita GDP far exceeds that of emerging rivals such as China and India, we have abundant natural resources, and our companies are well-managed. But perhaps our greatest strengths, says Stelzer, are our entrepreneurial spirit and something he calls our “American dynamism.”

So, there is some reason for confidence in the long run — if we can survive the next couple of years.

October 2011 Kitsap Peninsula Business Journal•KPBJ.com 37

By Harry Kelber It’s been nearly four years since we were being told that the economic recession was officially over; yet today, there are 14 million people who are still listed as unemployed by the U.S. Bureau of Labor Statistics (BLS).

(And we’re not counting the additional 12 million who are part-timers and temporary workers, and those who finally gave up looking for work in a bleak job market.)

Labor Leaders were virtually unanimous in praising President Obama’s $447 billion jobs bill, with some economists estimating that it would create as many as 2 to 3 million jobs by the end of 2013. But with Republicans strongly opposed, the Jobs Act has little chance of being approved by Congress, especially since there is no agreement as to who would pay for the $447 billion bill.

President Obama has been converted to the Republican view that cutting the federal deficit must be the top priority for the political parties. Without prior consultation with congressional leaders or organized labor, Obama struck a deal with House Speaker John Boehner for about one trillion dollars in spending cuts, with the prospect that the SuperCongress will recommend another $1.5 trillion in deficit reductions by Nov. 23.

What this means is that hundreds, (maybe thousands) of projects, programs, even entire agencies, will be eliminated or sharply curtailed. We don’t know which organizations are scheduled for the chopping block, but we’re fairly certain that Medicare. Medicaid and Social Security are on the list of intended victims. And it’s questionable whether social agencies that serve the poor sick and elderly will remain unscathed. Obama has taken away the traditional cost-of-living benefits for retirees.

If you are working for one of the enterprises that are targeted for spending cuts, you may end up within the ranks of those millions who are desperately looking for work.

Private Industry Is in No Rush to Hire New Employees What about private industry? Can we rely on Corporate America to supply us with urgently needed jobs? Very few companies are in a rush to hire new employees or rehire former ones. They’ve trained their employees to work harder and longer, often for less pay. If they need more help, they hire temporary workers.

In August 2011, the government reported no job growth, but many companies were still increasing their profit margins. It seems strange that in an era of economic recovery, there would be many companies who are laying off workers. For example, in August 2011, a little more than a month ago, 1,587 employers laid off a total of 165,547 workers. They say they’ll hire when conditions get better, but they are making conditions worse.

The American people are in a deep economic hole that is getting deeper as new obstacles arise to complicate their jobs campaign. The U.S. is currently 6.9 million jobs below where it was when the recession started, according to the Economic Policy Institute (EPI). And where are we going to find jobs for the hundreds of thousands of people who enter the nation’s labor force each year? What do we do with the 6 million people who have been unemployed for 27 weeks or more?

Our labor leaders didn’t criticize Obama the past year when he was busy with promoting massive spending cuts that could become job-killers. They did not rally their members to fight against spending trillions of dollars on reducing the federal budget deficit instead of using the money where it was urgently needed — to create jobs for workers and their families, who are realizing that some of them may never have a job and a paycheck again, While it will take an extraordinarily difficult campaign to get a split Congress to pass the Obama jobs bill, AFL-CIO leaders are not mobilizing their members for a full-scale national campaign.

Instead, they are busy revealing the long-held secret to the public that “America Wants Work!”

Given the current chaotic state of our economy, it is anybody’s guess how many jobs will be created, who will get them and when.

substantially under budget, which may prompt Gov. Chris Gregoire to call a special session or make deep additional spending cuts.

The final ingredient is job growth — or rather, the lack of it.

In 2008, the nation lost 2.6 million jobs, the worst performance since 1945. While the U.S. Chamber of Commerce has called for the creation of 200,000 new jobs each month over the next decade to restore prosperity, actual job growth has been anemic.

The New York Times summed up the situation best last week: “The problem is less that companies are laying people off than that they are not hiring. Consumers and employers alike seem almost frozen in place, with many economists saying that they seemed paralyzed by uncertainty about the future after the brinksmanship of the debt ceiling debate, the ensuing cut in the United States credit rating by Standard & Poor’s, stock market whiplash and more bad news from Europe.”

So how do we get out of this mess?

Where is the bright spot in the gloom?

First, it is important to recognize that the recovery is slow, and we must take steps to make sure our economy avoids the feared double-dip recession.

Second, there are hard choices to be made as the super committee co-chaired by U.S. Sen. Patty Murray (D-WA) tries to find

Critical opinions on economic development

38 Kitsap Peninsula Business Journal•KPBJ.com October 2011

I was certainly surprised the Association of Washington Business (AWB) has come out against Tim Eyman’s Initiative 1125, saying it “…would jeopardize construction and funding for multiple major transportation projects, including the Columbia River crossing in Vancouver and the 520 bridge in Seattle, and that just means more delays and traffic headaches for Washington drivers.”

In my view, that’s a load of crap.

According to AWB’s Web site, its decision makers also believe variable tolling is a necessary part of today’s transportation infrastructure projects, and that it would be better to have the Legislature set up a commission to set the tolls and tolling criteria than keeping those decisions with lawmakers in Olympia.

The devil is in the simplest of details.

Who would serve on this commission, and who would appoint them?

Although I supported the 2/3 majority for raising taxes, I find myself agreeing with Eyman a small percentage of the time, while also wondering that if our legislature had the cojones to actually do what is right for our state instead of doing what it takes to please those who fund re-election, if Eyman wouldn’t be marginalized.

That said, I find AWB’s position on I1125 to be a major thinking error.

The Initative is pretty simple. It reads: (1) Prohibit state government from diverting gas taxes and toll revenues in the motor vehicle fund or other funds to the general fund or other funds and used for nontransportation purposes; (2) Prohibit state government from transferring or using gas tax-funded or tollrevenue-funded lanes on state highways for nonhighway purposes; and (3) Require tolls to be dedicated to the

project they’re paying for, ending such tolls when the project is completed, and only allowing tolls to be used for purposes consistent with the 18th Amendment to the Washington Constitution.

Tolls on a project must be spent on that project and may not be diverted and spent on other things (allowing tolls to be imposed on anyone and spent on anyth ing stops them from being tolls and makes them into de facto taxes).

To be honest, I used to be philosophically opposed to tolls in general. But after seeing how well the new Narrows Bridge has worked once it was completed, I changed my mind. The convenience of LARY COPPOLA being able to get across the The Last Word Narrows without the hassle it used to be is well worth the four bucks in my opinion.

So I’m not real sure why AWB sees this jeopardizing any projects. Its simple language says tolls can only be used to pay for the project they fund — nothing else, and end when the project is paid for. Why is this a problem? How does it jeopardize anything?

What it does do is prohibit tolls to be used to fund mass transit boondoggles — like Sound Transit. And if you read the Puget Sound Regional Council’s (PSRC) Transportation 2040 plan, you’ll find it calls for tolling on I-5, I-90, I-405, and a lot of other state highways. It calls for converting existing lanes into toll lanes as has been done on State Highway 167, with the tolls being used not for funding new highway construction, or improvements to existing roads, but for funding mass transit.

I also remain philosophically opposed to

variable tolling — especially on roads we have already bought and paid for long ago — as well as PSRC’s proposed Vehicle Miles Driven Tax. That’s right… they are advocating taxing you for every mile you drive — in addition to tolling the roads you drive on, and pay for, through the taxes on the gas you buy to drive on them. What’s wrong with this picture?

AWB should be ashamed of itself for caving in on this. Does it think that tolling our interstate highways will help competitively position our state against the likes of Texas, Georgia, Mississippi and South Carolina?

The state’s business community has a right to expect better from AWB, and in my view, owes its members an apology for drinking the Kool Aid on this issue.

While on the subject of economic development, in a budget cutting move, the state eliminated its tourism office, saving $2 million a year to support an industry which generated $15.2 billion statewide in 2010 revenues. That looks like a pretty good ROI to me. But hey, I’m just a business guy with 32 years of experience, so what do I know?

In response, the state’s tourism industry stepped up to try and keep those tourism dollars flowing, and formed a new association called the Washington Tourism Alliance (WTA). And what was one of the very first things it did? It announced, “a strategic partnership with the Washington Lodging Association (WLA) and Saga City Media Inc. to publish the official Washington State Visitors’ Guide beginning in 2012.”

Saga City Media is an Oregon company.

No Washington publishing company was even alerted to the possibility of competing for this contract, much less given the opportunity.

In an email when I questioned why not, David Blandford, who is with the Seattle

Convention and Visitors Bureau, responded, “Out-of-state companies were not given an opportunity to bid either. WTA is partnering with the Washington Lodging Association which had an existing publishing partnership with Saga City Media Inc. Saga City is based in Portland but is very active in support of the tourism industry in Washington and the Pacific Northwest.”

I’ve seen a lot of Saga City’s work, and they do good work. B ut the quality of their work is not the issue. Washington jobs is. I personally know of at least five in-state publishers who could do this job just as well.

And the fact that an association that supposedly is in the business of promoting in-state jobs is intentionally funding Oregon jobs, without giving in-state companies the opportunity to even compete for the work, is beyond hypocritical.

In a WTA press release, Todd Thoreson, WLA Chairman of the Board and Regional Vice President, Hotel Operations, Red Lion Hotels Corporation said, “With the recent loss of state government funding for tourism marketing within the State of Washington, we are at a critical juncture that requires all hospitality industry stakeholders to work together and pursue solutions that can ensure our success in the future. We believe this partnership is a step in the right direction that helps us achieve this goal.”

You know what Todd, I’ve been a Red Lion customer, stockholder, and have belonged to your R&R Club for many years.

But I will boycott Red Lion Hotels, and am asking all our readers to, if they believe that dollars generated in Washington State should stay here to create Washington jobs, until the WTA allows this contract to be put out to bid to Washington State publishers only — as it should have been to begin with.

Why Obama will be re-elected Using the excuse of presenting a long promised jobs plan, President Barack Obama tried recently to launch a political comeback “amid the lowest approval rating of his presidency.”

Plus “a growing sense of economic foreboding here and across the country among voters who are ADELE FERGUSON increasingly Politics questioning their president’s skills and priorities.” So says the Wall Street Journal on the basis of a poll it jointly took with NBC News Aug. 27 -31 that found only 44 percent of Americans approve of the job he’s doing, taking the disapproval over half to 51 percent for the first time since his inauguration. Some 73 percent of people surveyed said the country was headed in the wrong direction. Yet, thanks to the Save

Obama arm of the mainstream media, most Americans still say the president inherited the nation’s economic woes from President Bush. That protective arm , however, appears to be faltering on the editorial pages. Examples: Columnist Peggy Noonan, “He is not a devil, an alien, a socialist. He is a loser. And this is America, where nobody loves a loser.”

Fouad Ajami, senior fellow at Stanford’s Hoover Institution, “The crippling truth of the Obama presidency is the pessimism of the man, the low expectations he has for this republic.”

Bret Stephens, Wall Street Journal, “H is for Hillary Clinton who — I can’t believe I’m writing this — would have made a better president than Mr. Obama.”

Norman Podhoretz, former editor of Commentary, “The question on every lip is what happened to Obama? The answer is that nothing happened to him. he is still the same anti-American leftist he was before becoming our president and it is this rather

than inexperience or incompetence or weakness or stupidity that accounts for the richly deserved failure both at home and abroad of the policies stemming from that reprehensible cast of mind.”

Shelby Steele, author, “If I’ve heard it once, I’ve heard it a hundred times; President Obama is destroying the country.

They have begun to see through the man and are surprised at how little is there.”

Robert J. Barro, Harvard economics professor, “One obstacle to reaching a sound agreement on fiscal policy is Mr. Obama’s recurring Robin Hood obsession.

No matter what is at stake in terms of fiscal stability, economic growth and even unemployment, he always returns to his desire to take more from our nation’s famously odious millionaires and billionaires.”

Bret Stephens, WSJ, “How many times have we heard it said that Mr. Obama is the smartest president ever? I don’t buy it. I just think the president isn’t very bright.”

U.S. Rep. Dan Burton, R-Indiana, “The president is not in over his head; he knows precisely what he is doing, rushing America down the path toward socialism.”

Mort Zuckerman, editor U.S. News & World Report, “Mr. Obama seems unable to get a firm grip on the toughest issue facing his presidency and the country — the economy.”

There are more but I’ll stop there because no matter how loud the hue and cry predicting Obama’s defeat in 2012, I disagree. Remember all the fuss over the first black sheriff, first black mayor, first black congressman, first black Supreme Court justice, etc? The first black president was the piece de resistance, the one first black achievement most desired and they finally got him and there is no way in the world he’s going to be dumped after one term when a second term is possible in which he could redeem himself.

(Adele Ferguson can be reached at P.O. Box 69, Hansville, Wa., 98340.)

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