Kitsap Peninsula Business Journal 25/02

Page 1

February 2012 Vol. 25 No. 2

The Voice of Kitsap Business since 1988

Arnold’s Rebounds, Doing Fine Arnold’s rises from the ashes thanks to veteran employees By Rodika Tollefson Arnold’s Home Furnishings in Bremerton has made a remarkable turnaround after a fire started by arsonists destroyed the store more than two years ago. The business reclaimed part of the old building that remained after the fire and despite a smaller footprint, the year-old space is as vibrant as ever. Customers are welcomed by the familiar “rooms” that replicate the design of a home, as well as some new areas such as an expanded mattress showroom. This rebirth from the ashes, however, would not have happened had it not been for two longtime employees, Kathy Christensen and Steve Ford. When owner Betty Arnold decided she would not reopen after the fire, Christensen and Ford jumped in to buy the company’s assets and rebuild. “We felt it was the right thing to do, and we loved the business,” Christensen said. Christensen has been part of the 51year-old business for 36 years, starting out in the back office and working her way up to buyer within five years. She has held that L-R: Owners Kathy Christensen and Steve Ford

Cover Story , page 6 $1.50 Display until March 1st

Automotive, pp 34, 35

Inside

Real Estate, pp 23-25

Special Reports:

Technology, pg 26

Women In Business, pp 4-13

Human Resources, pg 27 Financial, pp 28, 29

Home Builders Newsletter,

Retail, pp 30, 31

Environment, pg 33

pp 19-22

Editorial, pp 36-38


Best Western Plus Wesley Inn names new director of sales and marketing Sue Braaten, owner/operator of Best Western Plus Wesley Inn & Suites of Gig Harbor, announced that Lindsey Munson has been named as the hotel’s new director of Sales and Marketing. Munson graduated from University of Washington Tacoma in 2004, where she received her bachelor’s degree in Interdisciplinary Arts and Science. She previously worked as the sales director for the Wesley Inn from 2001-2005. Other experience includes working as the director of

catering for The Vault Catering Company, and most recently working as a sales representative for UniFirst Corporation. Her role at the Wesley Inn will include coordinating all marketing and group sales events, as well as business and social functions.

“I am very excited to have Lindsey back as part of our Wesley Inn management team,” Braaten said. “I know her knowledge, enthusiasm, and skills will be a valuable asset to our property, and we are thankful to have her.”

CK Chiropractic adds massage practitioner Dr. Scott J. Siegel, Chiropractic Physician and owner of CK Chiropractic, recently announced that Dominic Dofelmier, licensed massage practitioner, has joined the practice. For more information, call (360) 692-0181 or visit the website at www.WA-chiro.com.

AmericaHomeKey opens branch in Silverdale Gena Black recently opened a branch in Silverdale for AmericaHomeKey Inc., adding to the mortgage lender’s more than 70 branches throughout the United States. Black was hired as the branch manager and brings over 20 years of local lending experience to the office. The branch is located at 9564 Silverdale Way, NW, Suite 204 and can be reached at (360) 516-6789.

Lischalk joins KMHS as director of HR Beki Lischalk has joined Kitsap Mental Health Services (KMHS) as director of Human Resources. Lischalk comes to KMHS with extensive experience in the health care arena, and holds advanced certification as a senior professional of Human Resources (SPHR). She is president of the Washington State Healthcare Human Resources Association and an active member in both the Society of Human Resource Management and the American Society for Healthcare Human Resources Administration. For more information, contact Rochelle Doan, director of Development and Community Relations for Kitsap Mental Health Services at (360) 415-5871.

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Oberlander named to lead Kitsap Legal Services Kitsap Legal Services announces the addition of Lori Oberlander to its staff as executive director. She comes with over 10 years of experience operating nonprofits, including grant writing and fundraising. She is pursuing a Master’s Degree in Nonprofit Leadership at Seattle University. Kitsap Legal Services (KLS) is a 501(c)(3) nonprofit corporation, and works in conjunction with the Northwest Justice Project. It’s also a member of the Washington State Alliance for Equal Justice. Funding for KLS comes from the Legal Foundation of Washington, grants and individual donations. To be screened for referral to KLS, call the CLEAR line at (888) 201-1014. For more information about KLS call (360) 475-6125.

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New furniture and design store open on Bainbridge Island A new furniture and design store, Furnish Bainbridge, is now open for business on the east end of Winslow Way. Well-known Bainbridge Island businesswomen Mary Terry and Terri Bryant, owners, invite prospective clients to come in, browse, sit down and look at catalogs, or consult with knowledgeable staff. Furnish Bainbridge offers American made furniture from craftspeople in North Carolina, West Virginia, and Oregon, as well as from Bainbridge Island. There is a great variety of pieces that are well designed, carefully built to last, and competitively priced. Transitional furniture, distinctive lighting fixtures, original artwork, high quality linens, and unique decor items are all available. Customers may buy items that are on display in the store or order custom pieces. Selection assistance is available from the Furnish Bainbridge staff. In addition, LEED certified interior designer Catherine Michel, and residential designer Dane Bissell have teamed up with Furnish Bainbridge. Either of these professionals can work in depth with clients to furnish, customize, or remodel their homes, offices, or other facilities. The owners tout the store as a friendly place with good products and great ideas for Individual homeowners as well as builders, developers, and architects.

Navy Federal CU’s Holly Ridge donation has ripple effect When Navy Federal Credit Union built its new facility in Silverdale, it decided to offer its not-so-old office furniture and equipment to local not-for-profit organizations. Several organizations benefited from its generosity including Holly Ridge Center, which has been providing neurodevelopmental services to children from birth to three, and employment services to adults with special needs for over 40 years. Thanks to several members of a Navy submarine crew at Bangor, who offered brain and brawn to help move the furniture to its new location, Holly Ridge was able to take advantage of the gift. In turn, Holly Ridge offered some furniture to three other community not-forprofits: Bremerton Foodline, Coffee Oasis, and West Sound Treatment Center. Thanks to Navy Federal and a Navy submarine crew, Holly Ridge has a new look. Holly Ridge operates on such a low margin of overhead that this would not have been possible without this donation and is very thankful.

LivingSocial members retreat to Seabeck for Wine Retreat LivingSocial Escapes celebrated its first anniversary with a stay at Siloam Retreat and Wine Shop in Seabeck, which partnered with the company to offer a wine retreat package. “Siloam Retreat has made for an excellent merchant partner,” said David Madden, director of sales, LivingSocial Escapes. “They have provided our members with a unique and relaxing retreat experience in a beautiful setting and we look forward to continuing to work with them to bring even more visitors to the Seabeck community in the future.” Siloam Retreat & Wine Shop is a unique wine-themed bed & breakfast/vacation rental in Seabeck, offering specialized retreats and events. “As Innkeepers we have been blessed with a full house during our usual off-season through our partnership with LivingSocial Escapes. We have enjoyed getting to know guests and share good wine and good times,” said Julie Forville, owner/innkeeper of Siloam Retreat & Wine Shop. For more information about Siloam Retreat & Wine Shop, contact Forville at (360) 8304801 or jforville@msn.com.

Dr. Kurt Adams, a graduate of Green River community college, attended Parker College of Chiropractic and upon completion of his education, he became certified by the National Chiropractic Board, and licensed by the State of Washington. Celebrating his silver anniversary, Adams stated, “I’m really lucky to still be doing this after all these years. I didn’t think I’d make it twenty five years doing anything. I’m very grateful, and I still truly enjoy helping people get better.” Adams Chiropractic is located on Anderson Hill right next to Central Kitsap High School. “We like to make personal connections with our patients,” Adams added. “We care about every one of our people, and we want them to know that. We want to know how their life is going; we want to know how their children are doing. They’re family to us.” For more information on Dr. Kurt Adams, or how to set up an appointment, visit www.drkurtadams.com.

CK Medic One Foundation announces officers

Dragonfly Farms Nursery, operating since 1998, will open The Dragonfly Café in March. Windows, doors, and timbers are all recycled and the roof will be a living green filtration system. The coffee is from Majestic Mountain, a local roasting house in Kingston. The Dragonfly Café will be 200 square feet of interior space filled with locally produced baked goods, garden art and even farm fresh produce. Outdoor patio seating extends from the Café into the surrounding gardens. Dragonfly Farms Nursery located in Hansville, was home to the Garden Bloggers afternoon soirée hosted by Proven Winners in July of 2011.

CK Medic One Foundation announced the officers for this year. Dick West will continue as the foundation president, Ted Anderson will continue as the vicepresident and Mark Eisenberg will continue as the secretary. Christine Christoff has stepped into the role of treasurer replacing Sandy Stewart who served in that role for 6 years. New to the board is Kim Peterson as the public relations officer. The purpose of The Foundation is to provide supplemental support for the emergency medical service activities performed by Central Kitsap Fire and Rescue for the citizens of the Central Kitsap area. Information on the Foundation can be found at www.ckfr.org or by calling (360) 447-3550.

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Pillar Technology Solutions, Inc. expands to Kitsap Pillar Technology Solutions, Inc. announced it will expand its business to Kitsap and the greater Tacoma area. Established in 1998, Pillar has offered network, server, workstation, and additional computer services successfully in Seattle since its inception. “We are thrilled to offer the same quality of service our clients have come to expect to Kitsap,” says President/CEO Harold Cohrs. Pillar focuses on businesses with fewer than 100 workstations. A few of its clients include Talon Private Capital, Northwest Landscape Services, The Vance Corporation, and several local Subway locations. Optimizing any system for efficiency and cost is its mission. Pillar Technology Solutions, Inc. can be reached at (253) 677-4960, info@pillartechsolutions.com, or visit www.pillartechsolutions.com.

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February 2012 Kitsap Peninsula Business Journal • KPBJ.com 3

Dr. Kurt Adams celebrates silver anniversary

Dragonfly Farms Nursery opening a green café


Life after corporate: Finding a niche with a neighborhood coffee shop

4 Kitsap Peninsula Business Journal • KPBJ.com February 2012

By Rodika Tollefson When Fran Dreiling worked in the corporate world, she dreamed of someday owning “a little shop.” The dream came true in less than two months after she moved to Gig Harbor, an unfamiliar town. The move was major in several ways — not only did Dreiling and her husband, Steve, become entrepreneurs after leading a corporate life for decades, they had also previously lived in big cities. The couple bought Kimball Espresso Café more than four years ago as newcomers to the area. Since then, Fran’s smiling face has become a familiar sight at the popular coffee shop. She can be found making lunch for customers or running the cash register on weekdays — and often she’ll drop in on the weekends just to chat with customers. “This is completely different and so much better than the corporate environment because of the people,” she said. “For me, there’s nothing like the customers and getting to know people. You don’t get that in a corporate environment.” The Dreilings had both worked for the same transit bus manufacturing company and lived around the country, including in Seattle. When they were ready to retire from their careers, they decided to make the final move, from Texas to the Pacific Northwest. The couple are raising their grandson, who was in elementary school at the time, and in search of a good school district, they discovered Gig Harbor. “If you only spend time in Seattle, you

don’t know these harbor towns exist,” Dreiling said. Both Steve and Fran grew up in small towns, so embracing their new community was easy. The shop caters to that small town atmosphere. In addition to cozy overstuffed chairs and ample table seating space, Kimball Espresso Café (www.kimballespressocafe.com) offers a breakfast and lunch menu, including soups, salads and sandwiches that are made to order. The café is also a gallery of art and photography displayed on the walls and available for sale. Peninsula Art League and Sound Exposure Photo Club members use the shop to showcase their work and rotate the exhibits on a regular schedule. Although Steve has had to return to a full-time job because of the economy, he is the go-to maintenance guy, and can also be spotted behind the scenes on occasion. “I’m really lucky because he’s extremely mechanical and he repairs all of our equipment,” Dreiling said. “…I use him as the sounding board over the dinner table. It’s an advantage that Steve and I worked together for years.” Dreiling said the two selected a coffee shop because it was an easier transition into a retail business, but they also wanted something small and personable enough that they could run themselves. Going from the secure life with corporate benefits and retirement funds was a big leap but that corporate background also was a big advantage, Dreiling said, because it taught her about cash flows, taxes and other business essentials.

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“The biggest challenge has been the economy. When you first foray into a small business before a big fall in the economy, you have to learn fast how to cut costs and stretch things,” she said. Since the Dreilings took over the ownership of Kimball Café, they have experimented with new ideas such as selling wine and beer and bringing in live music. Those ideas were nixed after a while, but Dreiling is always looking at new trends or changes to introduce — except for one thing. “The shop has been here for more than 20 years and the core is the product

line. We have an excellent roaster, high quality, and those are things we don’t mess with,” she said. With the business running smoothly, they are ready to expand the operation. The couple has been on the lookout for other coffee shop opportunities though Fran envisions something simpler, without an extensive food menu. “Three is a manageable number and there’s economy in numbers,” Dreiling said. “But I feel strongly you’re only successful if you have a real presence in your shop.”

Harbor Audiology & Hearing Services now offering new technology for tinnitus Dr. Laura Day of Harbor Audiology & Hearing Services in Gig Harbor is now offering SoundCure Serenade for sufferers of tinnitus. Originally developed at University of California Irvine, S-Tones are the foundation of the SoundCure Serenade technology. Tinnitus is a condition in which a person perceives sound that is not actually present in the environment. It is often described as “ringing in the ears” but can include virtually any type of sound including whooshing, hissing, or whistling. There are many possible causes for tinnitus but most cases are related to damage to the auditory system. “This is a remarkable breakthrough for those who are disturbed by Dr. Laura Day their tinnitus” says Dr. Day of Harbor Audiology. “We see patient’s on a nearly daily basis complaining of tinnitus. Many find it interrupts their daily life and sleeping habits; many say it drives them crazy. This can have a negative impact on their lifestyle, work and relationships. It really is a quality of life issue”. One in ten American adults suffers from tinnitus. Many tinnitus sufferers are not offered treatment but are told to ‘just live with it’. Harbor Audiology now offers a new sound therapy solution that may bring relief. Serenade is a complete, FDA cleared sound therapy solution based on acoustic research conducted by leading University researchers. Simple to use and customized to each patient, Serenade’s digital signal processing system is based on the relationship between specific tonal algorithms and their effects. “New treatment approaches are successfully providing relief for many” stated Dr. Day. “Our office is dedicated to staying abreast of new technological developments and sharing them with our community”. Harbor Audiology is the first clinic in Western Washington offering SoundCure and other tinnitus treatments. For more information about SoundCure Serenade contact Harbor Audiology & Hearing Services at (253) 851-3932 in Gig Harbor; (253) 473-4394 in Tacoma or online at www.harboraudiology.com.


Local women in the arts music, she tailors her teaching to the students’ personal preferences. She especially likes working with kids. “I like exposing the younger generation to their creative capabilities. I think it’s exposing them to the arts and that’s valuable,” she said. Kathleen McGilliard also likes working with kids although her students come in all ages. Her career in community theater in Gig Harbor spans nearly four decades. It includes launching Encore! Theater and the Academy of Performing Arts, and serving

as their creative force until they closed doors for financial reasons about a year ago. “I adore working with children. They’re like sponges,” she said. “Once you’ve gained their trust, they will try anything and everything you ask.” McGilliard was only 4 years old herself when she was introduced to the performing arts, first studying ballet. She danced all through high school and then pursued bachelor and master degrees of fine arts. When she moved to Gig Harbor from New York, she immediately became

involved in the local arts community and hasn’t stopped since. After Encore! Theater closed doors, she continued to teach and direct plays through PenMet Parks, creating a new performing program. “I have been lucky because I have been involved in something as creative and changing as the arts,” she said. “…I enjoy the creative challenge of building performances.” Mary Heffner’s creative challenges Arts, page 11

February 2012 Kitsap Peninsula Business Journal • KPBJ.com 5

By Rodika Tollefson Wendy Allred has owned a business with her husband, Rick, since 1998 under the name Sparrow Portrait Photography Inc. The two started the Bremertonbased business at the same time as they started a family, and the move has worked out well. “Back in those days, there were not Wendy Allred as many photographers compared to how many there are now,” Allred said. “It was a good way to make money and care for your kids.” She said the business took off more than they had anticipated, and it was a good combination of Rick’s technical skills and her art school training. She especially likes working with young children and being able to connect with them to capture the moment. “I don’t think you can learn it, I think it’s a gift,” she said. Allred got into photography after answering an ad for a JC Penney photo studio that said no experience was necessary. That 1976 ad led to a career with the company that included opening a new studio and traveling around Northwest and California. She sees her work as an art of its own. “It definitely takes artistic skill to do the portraits and to capture the emotion,” she said. Karina Gordievich captures emotions in a different way. A piano player since she was 5 years old, she sees music as a way of expressing feelings — and she believes individual musicians interpret the same piece differently and make it their own. As a piano teacher, Gordievich encourages her students to connect the music with their emotions even as they’re starting to learn the piece. Born in Ukraine, Gordievich moved to the United States when she was 12 and one of her first priorities was to find Karina Gordievich a good piano teacher. She has followed her passion for music into college, obtaining two bachelor degrees and a master’s in piano performance. She opened her Allyn-based Concert Piano Studio a few years ago and also teaches at her former school in Chico, owned by her longtime instructor Irene Bowling. Her other activities include being an accompanist for plays and performances including opera and serving as the music director at her church. “I have to do different things, which keeps life interesting,” she said. Gordievich’s students range in age from 4 to 75 and although she’s classically trained and prefers classical


ARNOLD’S

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from page 1 title ever since — every piece of furniture and accessory sold in the store is the result of her work, as is every designed space. Ford, also with the business for more than two decades, oversees the mattress side of the store, along as essentially serving as the operations manager. For Christensen, returning to the remodeled space as the owner was no different than coming to work on any other

day. She says she still buys the products the same way, as well as designing the layout of the rooms, merchandising and working with customers. “(The job) is like a hobby for me. I love to garden, design and decorate. I feel fortunate,” she said. The industry has been evolving in the 30 years that Christensen has spent going to the market and choosing products. “It was simpler back then because of logistics,” she said. “You still have to be careful because we want things that represent good value at

any price.” As a buyer, she’s responsible for every product selection, from manufacturer to the fabrics. That means staying ahead of changing customer trends and always looking out for new things. She has seen colors come back around, while styles have evolved through the years, and finds that these days consumers are more careful about their purchases as they look for value. Christensen said the staff is thankful for the loyal customers, who continued to patronize the store while it did business out of a temporary location, and have been supportive throughout. “We’ve rebound and are doing well,” she said. The two business partners have retained all 14 employees, although manager Ralph Erickson did retire after 49 years with the company. She said being able to keep

everyone employed has been the best part about the transition to business ownership. And plans are already in place to expand. Drawings have been completed for a 5,000square-foot addition in the back of the store. Christensen said the secret to having a successful business and career is to follow a passion, just as she has done for more than three decades. “Get involved in an industry you love, and when you go to work every day, you’re doing something you love,” she said.


Poulsbo’s Saisons Boutique blooms with the seasons slow down herself and cut her time in the shop so she could actually have a day off — but her customers expect her to be there. The customers, she said, are one of the best aspects of her new business. “I love my employees and I love my customers,” she said. Her retail adventure has similarities with her real estate career. A second-generation realtor, Whitson entered that industry during a down market,

and found it was a good way to learn — much the same way as she entered the retail industry, learning how to run a business in a downturn. Although several shops have closed in downtown Poulsbo in the last few years, Whitson said there’s a renewed energy among the merchants. She is involved with the Historic Downtown Poulsbo Association. “We really pulled together last year as a city,” she said. “We’ve created an energy and a momentum, and I think it will be very positive for the downtown core. And that’s super-exciting.”

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By Rodika Tollefson Buying a retail shop in the middle of a recession would seem like a risky move, but for Erin Whitson, lack of guarantees was nothing unusual. Whitson and her husband, Dick, have been self-employed nearly their entire careers. After 24 years as a Realtor on Bainbridge Island, Whitson wanted a change of scenery. “I was getting burned out and I wanted something that would uplift my soul,” she said. Although she hadn’t considered a retail store, when she learned about Les Saisons in downtown Poulsbo being for sale in 2009, she decided to take a look. Having managed clothing stores in the past and with a degree in fashion merchandising, Whitson was not a stranger to the retail environment. Two years since her career move, she is happy with her decision. Of course, it didn’t come without surprises. “It’s way more work than I expected. I was used to working odd hours and long hours in real estate, but this is a lot more,” she said. Even during her two days off, Whitson spends her time on Saisons Boutique (http://saisonsboutique.com) business matters — doing inventory from home, a task she said could be a full-time job in itself. But, she notes, she loves her five employees and if she wanted to go on vacation for a week, she would feel very comfortable with the idea. As with any new business, Whitson spent the first year going through a huge learning curve, but she anticipated that ahead of time. “I’m feeling on top of my game now,” she said. Whitson has found that there is an art to a successful retail shop. Since ordering is done at the beginning of the year for the rest of the year, she has to analyze various aspects. It takes a lot of organization — and a huge spreadsheet — to estimate needs based on past trends and to make sure she doesn’t underbuy or overbuy. “The buying is fun. But there’s so much great product, you need to remove your ego and buy what the customer wants,” she said, “so you need to learn what sells.” The shop has been in business for many years, previously under the name of Timeless Heirlooms. Whitson dropped the word “Les” from the name after taking over as part of the evolution. She said customers already were calling the boutique Saisons so it was a natural step. But the biggest change was a new store layout completed in May 2010 with the help of a designer Whitson hired to help improve the flow. The change included adding an entryway of sorts so the store didn’t seem as overwhelming when coming through the door. The selections, which range from baby gift items and women’s clothing to jewelry, skin care and décor, are now organized by “departments.” Dick Whitson owns another business, Clean Sails, so he’s not hands-on at the store. Whitson said eventually she’ll have to


Sweet success is their business

8 Kitsap Peninsula Business Journal • KPBJ.com February 2012

By Rodika Tollefson Many local women love making sure nobody leaves their business grumpy. Who would, when presented with all the tempting choices like chocolate, cookies or other Lisa Dunlap goodies? Lisa Dunlap grew up with an entrepreneur father and started working in retail when she was 14. In her heart, she knew she wanted her own shop — and when she came to Bainbridge Island 11 years ago and couldn’t find a candy store, she knew her time had come. For several years, Dunlap planned her candy shop, which she later called Bon Bon. She talked to candy store owners in other areas, researched products, and waited for her youngest child, then a kindergartener, to grow a little older. Bon Bon opened in 2007, and Dunlap said she loves selling something that can “make a person’s day.” She has five employees and the shop is a true family business: Her two adult daughters and teenage son help out. Fudge is made in-house but the store sells numerous other tempting sweet selections, which have evolved based on customer requests. “About a quarter of the products are based on recommendations

from customers,” she said, but added that customer service is just as important as having the best quality product. Dunlap loves to treat the kids especially with “wacky and weird things,” and she’s always researching new ideas, such as the popular gluten-free choices. “The best part is the relationships I’ve made with customers,” she said. “I knew it was going to be important but I didn’t realize how many friends I would make. It’s an uplifting place to work.” Rebbecca Balstad is also familiar with the uplifting power of chocolate and other treats. Balstad is part-owner with her husband and parents of The Candy Shoppe LLC in downtown Port Orchard. The business was her brainchild as a homeschooling project when she was 15. Now an adult, Balstad is back to being part of the store, after returning to the area from Spokane. The shop is in its 11th year and Balstad is happy to be back. She said it’s just like riding a bicycle — she easily got back into the swing of things after moving “home” last July. The family currently runs the business without employees, which means Balstad is hands-on with everything from helping customers to making chocolate and fudge — which, at Christmas time, added up to 200 pounds of fudge per day. “My favorite part is the customers. We have the best customers in the world,” she

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gave her flexibility to be a mom — her children are now 13 and 15 — and do something she enjoys. It also allows her the opportunity to give back through the business, which has supported many organizations and causes. “I like the food aspect and working with people, and I love the neighborhood,” she said. Monica Downen also made a big career transition when she opened Monica’s Waterfront Bakery and Café in Old Town Silverdale with her husband, Mark, more than five years ago. She had been a police dispatcher for King County for 15 years but got burned out after moving to Olalla and commuting to Bellevue. She had Monica Downen worked in the food industry in college and decided it was a good interest to pursue. Before launching the business, Downen talked to several women who owned restaurants. “Every one of them, without fail, told me not to do it,” she said. “But I felt like I had a passion and I didn’t know all the things I could be doing wrong.” Catering has been added to the business since then, and Monica’s has built a loyal customer following at the café as well. Downen no longer does the baking except for bread but she is still the one developing recipes and doing much of the cooking for catered events and special orders. Success, page 12

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said. “It’s exciting to be part of everybody’s holidays.” Being closer to family has more than one advantage: Balstad is expecting her first baby in June. Eventually, she said she may take over the business from her parents completely, but for now, she’s just happy to be back and get ready to be a mom. “For a family business to be 11 years Cynthia Jeffries-Cyr old is amazing for Port Orchard,” she said. “We had a great year and we’re thankful.” Cynthia Jeffries-Cyr opened CJ’s Evergreen General Store in Bremerton nearly five years ago and later added a catering side. The storefront has a little bit of everything: convenience groceries, locally made foods, ready-to-make dinners, espresso, lunch and pastries. Jeffries-Cyr works with a chef to come up with the menus — including things like the unique chocolate-covered bacon. “We try to bring in local products,” she said, adding that about 25 local vendors are represented at the store. The catering side, which can serve both small parties and large events up to 300 people, was added two years ago as a way of expanding the business. Since then, CJ’s has catered for the chamber of commerce, Kitsap Economic Development Alliance and various other customers and events. Jeffries-Cyr entered the food industry after working as a claims representative for an insurance agency. She managed the Port Gamble Café for more than two years and loved it. Launching her own business

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Entrepreneurship runs in the family When they say business runs in their blood, these women really mean it By Rodika Tollefson At 67 years old, Chico Towing is one of Kitsap’s oldest businesses and for third-generation owner Stacey Tucker, that brings both pride and responsibility. She said Stacey Tucker each generation has added a different personality, but the values such as customer service have remained consistent. “The day-to-day business has changed dramatically but the underlying principles have not changed,” she said. “I feel responsible for honoring the values and respecting the legacy.” The business was founded by her grandfather and Tucker bought it from her father in 1994. She has seen it tremendous growth while also running the Olympic Auto Sales dealership and a window tinting company and other enterprises. About four years ago, Chico Towing moved to a new, state-of-the-art facility that also houses commercial tenants and offers 24-hour outdoor storage for materials, boats, motorhomes and other things. “With the economy downturn, we’ve seen some sales for towing drop off so we’re using the land to

generate revenue,” she said. “We try to use what we have to diversify.” With her finger in several businesses, Tucker’s days are never boring and she likes it that way. She’s involved in the community, being active with organizations such as the Rotary, Bremerton Chamber of Commerce and nationwide industry groups. Working in the family business was not her original intention. But after giving the mental health field a try, she was enticed to follow the family tradition instead. “I love being part of the community and having a heritage to follow — and know that thi s business had a life before me and will have a life after me,” she said. Kim Punt didn’t plan on being a secondgeneration business owner either, but she’s enjoyed the decision of buying her stepfather’s Kim Punt company, Alfred Interwest Insurance in Port Orchard. With an accounting background, she took a part-time job at the business 31 years ago after a three-month stint as a stay-athome mom. The job quickly turned to full time, then led to expanded responsibilities and the pursuit of an

agent’s license. More than 15 years ago, she bought the company when Peter Alfred was ready to retire. Working on commissions prior to owning the business gave her a good foundation, and by the time Alfred fully retired, she was bringing in 80 percent of the business. “The business has changed. What we offer isn’t just order taking, we’re learning about the customers and finding solutions,” she said. “It’s about educating and offering someone choices.” As an independent insurance agency, the company can offer policies from different insurers and Punt said her background working with both small and large companies has given her a wellrounded understanding of different needs. Punt is active on several boards including Olympic College Foundation, Kitsap Peninsula Visitor and Convention Bureau and Fathoms O’ Fun. “Being a good, family-based business in a community like this is very rewarding, and it’s fulfilling to give back to the community,” she Jocelyn Waite said.

Jocelyn Waite didn’t dream about owning a family business when she studied linguistics in college, but she’s happy that she and her husband, Jeff, bought Harbour Public House on Bainbridge Island from her parents. Waite played a major part in helping her parents, Jim and Judy Evans, launch the business. When she agreed to work there for a year as a manager in between graduating with a bachelor’s degree and going to graduate school, she didn’t think much of it. “It took me the whole year to learn the job and I decided to do it for another year,” she said. Her college plans changed when she met her future husband, Jeff. The couple met through the pub, got married there, and found it fitting to take over the business when the Evanses decided to move to Hawaii. Harbour Public House celebrated its 20-year anniversary in December. Jocelyn and Jeff also own Pegasus coffee shop and a marina, with all businesses as well as their home located within a block. “I was raised to have a career and think big,” Waite said. I was raised to go for my dreams and aim high and I wondered how I would do that and balance a family. Now, I can still have a career and be a fulltime mom.”

Harbor Audiology Continues to Grow With New Technology

Laura K. Day, Au.D. Doctor of Audiology Harbor Audiology & Hearing Services, Inc. any type of sound including whooshing, hissing, or whistling. There are many possible causes for tinnitus but most cases are related to damage to the auditory system. “This is a remarkable breakthrough for those who are disturbed by their tinnitus” says Dr. Laura Day of Harbor Audiology. “We see patient’s on a nearly daily basis complaining of tinnitus. Many find it interrupts their daily life and sleeping habits; many say it drives them crazy. This can have a negative impact on their lifestyle, work and relationships. It really is a quality of life issue”. One in ten American adults suffers from tinnitus. Many tinnitus sufferers are not offered

treatment but are told to ‘just live with it’. We now offer a new sound therapy solution that may bring relief. Serenade is a complete, FDA cleared sound therapy solution based on acoustic research conducted by leading University researchers. Simple to use and customized to each patient, Serenade’s digital signal processing system is based on the relationship between specific tonal algorithms and their effects. “New treatment approaches are successfully providing relief for many” stated Dr. Day. “Our office is dedicated to staying abreast of new technological developments and sharing them with our community”. Harbor Audiology is the first and only clinic in Western Washington offering SoundCure Serenade and other tinnitus treatments.

4700 Point Fosdick Dr., Suite 212 Gig Harbor, WA 98335 253-851-3932 (T) • 253-851-4216 (F)

“The field of audiology is growing”, said Dr. Day. “Even though the field has been around for a long time we specialize in educating our patients and have the latest new, advanced hearing instrument technology as well as other treatments. We have many wireless and Bluetooth solutions to help keep people in those relationships that are important to them. We take pride in putting the needs of our patient’s first”. For more information about SoundCure™ Serenade® as well as the latest in hearing instruments and Bluetooth technology, contact Harbor Audiology & Hearing Services at 253851-3932 in Gig Harbor or 253-473-4394 in Tacoma. You may also visit us online at www.harboraudiology.com.

1901 S. 72nd St., Suite A-14 Tacoma, WA 98408 253-473-4394 (T) • 253-471-0743 (F)

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February 2012 Kitsap Peninsula Business Journal • KPBJ.com 9

The mission of Harbor Audiology & Hearing Services is to provide superior hearing and rehabilitative health care to all patients and ensure quality of service. Dr. Laura Day, owner of Harbor Audiology enjoys helping people improve their quality of lives. She, along with her staff, do this on a daily basis at Harbor Audiology & Hearing Services, located on Point Fosdick in the St. Anthony Medical Building and also in South Tacoma. Harbor Audiology serves children and adults, providing diagnostic audiometric evaluations, hearing instrument selection and fitting from a variety of manufacturers. In addition, Harbor Audiology provides videonystagmography (VNG) assessments for those suffering from vertigo and balance issues and provides treatment options for tinnitus, which is ringing and noises in the ears. Harbor Audiology is the leader on our community in dealing with the issues of tinnitus. Dr. Laura Day is proud to announce Harbor Audiology is now offering SoundCure™ Serenade® for sufferers of tinnitus. Originally developed at University of California Irvine, STones® are the foundation of the SoundCure Serenade technology. Tinnitus is a condition in which a person perceives sound that is not actually present in the environment. It is often described as “ringing in the ears” but can include virtually


Women love working behind the scenes

10 Kitsap Peninsula Business Journal • KPBJ.com February 2012

By Rodika Tollefson It’s been said that women working behind the scenes in certain jobs are the glue that holds an office or organization together. It takes a certain personality to be able to juggle the many tasks — and do it well. These are some of the local women who are not usually in the spotlight but are always there to make someone else’s job go smoothly. Jonikka Mollinet has worked as the office manager at the Stafford Suites assisted living center in Port Orchard for 13 years. Her hats include payroll and human resources. Rental Jonikka Mollinet agreements for residents, background checks for employees and serving as the receptionist twice a week and the backup for the executive director are among her duties. Her favorite part is giving facility tours. Mollinet started working with seniors as a Medicare billing clerk for durable medical equipment, and then moved to a chiropractor’s office so she could be closer to home. One day she saw Stafford under construction and decided she wanted to work there. When she stopped by the trailer serving as the temporary administration office, she was going to try for the job of a receptionist — and got recruited as office manager instead. That gave her the opportunity to build the organization from the ground up, helping create policies and business systems. “The residents are the best part. They are amazing people and I love being part of their lives,” she said. “It’s a family here, and to be part of a family that cares about seniors, there’s no way to describe it.”

Ginger Waye has been with the Port of Bremerton for 19 years, six of those in her current role as the executive assistant and clerk of the board. Since she’s part of a very small office, she Ginger Waye assists all the port’s department heads as well as working for the board of commissioners and the port CEO — essentially, she has eight or nine bosses and has to constantly prioritize her work. Waye’s career has included working for the Bremerton Chamber of Commerce and the Trident Navy base. She was hired by the Port as a receptionist and clerk typist after being a full-time mom for a few years. Her original job has evolved to later incorporate webmaster and other duties. She likes the diversity of her work. “Every day is a different day and I think any executive assistant or administrative assistant would say the same thing,” Waye said. “Every day has new challenges, and you can create your own challenges and work on new things.” One of her recent accomplishments was participating in the Leadership Kitsap program last year and Waye hopes to become more involved in the community as a result. “That was an eye opener and it got me more aware of things happening in the community, the challenges and how it all makes the community work,” she said. Sandra Lee, office administrator at Windermere Real Estate in Bremerton, started her career with the company 16 years ago. Although Lee does communicate directly with clients on some matters, the work she does out of the public eye is critical to the success of the company. Her role is to

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provide whatever the brokers need to do their job, to make sure all the paperwork is in order and to free up the real estate agents to do what they do best, sell homes. She confesses that her nickname is sergeant major. “My office is considered the hub because everything comes through here, vendor-wise, agent-wise and paperwork-wise,” Lee said. The agency has been promoting a paperless environment so one of Lee’s many jobs is to scan paperwork and help Sandra Lee automate processes. That’s a drastic change from when she started 16 years ago, when the entire office of about 10 agents had one shared computer and the listings were just transitioning to electronic format from being in a thick book. Now, she sets up websites and online listings for all the 23 agents, and has two part-time assistants to help out. Lee has been in the real estate industry since 1985, having worked previously for a real estate development company. “If there’s anybody that can say they love their job after all these years, that’s me,” she said. Linda Helenberg divides her time between Gig Harbor and Poulsbo as the

client services and contract manager for West Sound Workforce. Her main job is to assist new and existing clients, build client relationships and facilitate customer Linda Helenberg service. West Sound Workforce is her first small company, after being in a corporate environment for many years. After working for a Fortune 500 national staffing company for 11 years in different roles, Helenberg moved to this area from the Midwest about five years ago and decided to inquire about work at West Sound. “I loved becoming part of a small company. I was immediately involved in various facets of the business. You can wear many hats,” she said. Working for a small business also means being pulled in different directions since the manpower is more limited compared to corporate resources. That’s the biggest challenge in Helenberg’s work but she also loves the variety, as well as working for a woman-owned company. “It’s very much a fun business and it’s very rewarding,” she said. “There’s nothing better than putting people to work.”

YWCA of Kitsap County now accepting nominations for Women of Achievement Nominations are open for the YWCA of Kitsap County's 23rd Anniversary Women of Achievement Recognition luncheon. Describe the nominee’s attributes and accomplishments, making her a role model in the community. Nomination forms are available at

www.ywcakitsap.org. Nominations can be mailed to YWCA, P.O. Box 559, Bremerton, Wash. 98337. Submission deadline is March 2. The luncheon will be held on April 24, from Noon to 1:30 p.m. at the Kitsap Conference Center.

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Jeanneé Reneé Brown: Veteran beautician rekindles passion in new ways By Rodika Tollefson Jeanneé Reneé Brown has been a hairstylist and aesthetician for more than four decades, living and breathing her Jeanneé Reneé Salon business since 1971. And while she’s changed some things through the years, she is just as passionate about beauty as she was in those early days. And now, Brown hopes to rekindle that passion in new ways, not only expanding her style makeover service but also doing more education and inspiring other women.

“I went through some personal challenges the last two years and that’s probably one of the best things that happened to me,” she said. “I found myself again; 2012 is the year for me of getting back in the saddle and getting a hold of why I do what I know best.” The Jeanneé Reneé Salon has been in the same Old Town Silverdale location since 1978. The economy has brought a shift in business in the last few years, and of the nine stations Brown leases to hairstylists, five have been vacant. One of

ARTS

Victoria Whitlow is also passionate about promoting arts and she does it through her work as the director of education for Bainbridge Performing Arts. She joined BPA last August after an almost 15-year career in performing arts education. Whitlow has performed nationally and worked with several theaters in Seattle including the 5th Avenue but was lured by the small community atmosphere of the island. “I love the community feel. The quality of entertainment and education on the island, and the artistry is that of a large city,” she said. Coming from a family of teachers, Whitlow started performing at a young age and later wanted a career combining the two fields. “The more I performed, the more I found myself teaching,” she said. She still has the best of both worlds — in addition to providing support for all the BPA’s programs, she teaches private lessons and occasionally performs with a small musical theater group. “What I love about BPA is that the atmosphere is very friendly and family oriented,” she said. “That’s exactly what I was looking for. To have a connection with the families and the students is important.

from page 5 often focus on creating communities of artists. The Poulsbo watercolorist and calligraphist helped start several art groups, including Poulsbo Art League and Verksted Gallery. “I think I’m a better starter than a painter,” she said, and added with a laugh, “If you want something started, call me.” Heffner’s artistic life began when she was a child. She recalls drawing and sketching all the time. “I was born that way,” she said. She later took many art classes and experimented with several mediums, including oil and pottery. Some of her watercolor and calligraphy work is for sale at Verksted, a cooperative nonprofit gallery that represents about 40 artists. She said the success of the gallery is due to the high quality of the product and lack of salaried staff — the artists take turns running the store. The Poulsbo Art League she cofounded also continues strong. Artists get together every Wednesday to paint together and sometimes learn from guest instructors. “Painting is a lonely process so it’s good to get together with others,” she said.

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exercising and having a healthy mind. “Beauty fits right into that, it makes a whole woman,” she said. One thing Brown changed about herself as she overcame personal challenges is avoiding negative talk — and not just her own. She said if someone brings up negativity, she’ll turn the topic around to look at the positive things in the situation. “I try to laugh as much as I can now. Laughter is the key to the soul,” she said. She looks at her own challenges the same way, finding the bright spots. “I’ve turned my life around but without God, nothing would be possible. My faith is huge and I’m really at peace,” she said. “I feel calmness.” Even after 40 years in the business, Brown believes in education and is ready to go back to school and learn new things to share with others. Her dream is to create a center, a mecca of sorts, where professionals such as dentists, eye doctors and fashion coordinators could work as a team with stylists to make a person look beautiful all around. “I’m all about helping women at any age,” she said. “That’s my focus, bringing out the beauty and bettering people’s lives… One thing that can make you feel good is a change in your looks. It changes your personality — you can take a step forward and know you can overcome anything.”

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her ideas is to find the right manager, hire up-and-coming stylists and switch to the “old model” of paying wages instead of leasing the space. In addition to running her salon and working as a hairdresser, cosmetologist and aesthetician, Brown helps oversee some aspects of other businesses she owns with her husband, Mike. But her true passion is for helping other women reclaim their beauty, especially women who’ve been going through life changes. “I’ve been through one divorce and ups and downs. When I see women who are really down, I know I can pick out their clothes, pick out their colors and change their hair — and change their attitude. Stylists are like a life coach,” she said. Even when she simply cuts hair, Brown said she goes beyond a simple request: She considers the person’s facial structure and skin. And she strongly encourages her clients to change their hairstyle frequently to feel good about themselves. “I change up my clients, I don’t want them to get away with doing the same thing,” she said. “Looking well and living well are two of the most important things. Walking out of that front door, you present (yourself) to the world.” She also likes to share beauty secrets such as using infrared therapy and draining the lymphatic nodes, along with


Retired nonprofit director turns to laughter yoga

12 Kitsap Peninsula Business Journal • KPBJ.com February 2012

By Rodika Tollefson The positive effects of laughter on a person’s health have long been documented, but finding a reason to laugh out loud is not always an easy task for many people. No matter, says Belfair resident Sharon MacIntyre — it’s perfectly fine to laugh for no reason, and the health benefits are just as great. MacIntyre, who retired last year as the longtime director for the nonprofit Resident Councils of Washington, is a certified laughter leader. Not quite ready to spend all her free time skiing, volunteering or socializing, MacIntyre decided to ease into real retirement by starting her own business called Laughter Enrichment. Even before she was ready to go full-swing last summer, she was already getting requests from retirement facilities and other groups for laughter yoga. “It’s a segue to another part of my life. I can follow my passion and it’s fun to pursue other things,” she said. Her passion is to bring joy to others, especially seniors, and she sees Laughter Enrichment (laughterenrichment.com) as a way of doing that. She first stumbled into laughter yoga while taking a continuing education class when she worked at Resident Councils, and had so much fun that she decided to certify to teach it. Laughter yoga is the brainchild of Madan Kataria, a physician from India who

was inspired by Patch Adams — an American physician who advocated for laughter and joy as an important part of healing (and who also inspired the movie “Patch” starring Robin Williams). Kataria

launched a laughter club but it was shortlived until, at the advice of his wife, a yoga practitioner, he added yoga breathing techniques. The result, laughter yoga, received phenomenal response around the world and created a movement that is now about 17 years old. More than 6,000 laughter yoga clubs have since been created in 60 countries. Making people laugh out loud during a workshop has nothing to do with standup comedy. Sure, McIntyre tries to be funny — often by making fun of herself — but she also leads the group in exercises to inspire movement as well as laughter, even if it’s the fake kind. Some of her “performance” is ad-libbed and it’s tailored to the group’s “mood,” but she also does some homework to create material specifically for her workshop audience. She’s facilitated laughter yoga with activity directors, TOPS group members and even cloggers. “It only takes one other person (laughing) and soon it’s the next person, and pretty soon everybody is laughing,” she said, adding that she is goofy and has a hardy laugh, which in itself can be contagious. Pam Vanoverbeke, life enrichment director at Willows

Retirement Living in Bremerton, said McIntyre has a talent for reading the people in a group. Vanoverbeke has hired McIntyre to come in once a month for the past few months to do workshops with residents. “They loved having her here,” she said. “Days later they were still talking about it. They get excited about it and tell others.” She said since McIntyre varies her sessions, it doesn’t get boring for returning participants. “I’ve seen people in the class laughing whom I’ve never seen laughing before. That alone is worth it,” she said. And that’s one of the reasons McIntyre loves laughter yoga. After working with vulnerable populations for so long and still being an advocate for the elderly, she said she still likes to focus on the elderly or those who are ill because they especially need a laugh. Hospital and hospice settings are other areas where she hopes to bring laughter yoga, including for caregivers. McIntyre has always been entrepreneurial — at Resident Councils of Washington she had to find ways to bring in self-sustaining revenue — but she didn’t know what to expect this past summer when she decided to start her own business. “I wasn’t sure how it was going to goon but pretty soon I was getting calls without doing any advertising,” she said. Since then, she has found a niche where she can use her leadership skills, her creativity and her joy of life to help others. She believes everyone can laugh for no reason with a little practice. To teach people how to laugh, one tool she suggests is a Tickle Me Elmo doll. “If you feel down and out, turn him on and everybody will laugh,” she said. Another suggestion is to laugh in your car and see how long you can do it, or play with a child, kitten or puppy because you can make faces at them and laugh at their antics. “You really attract people when you have a joyous spirit,” she said. “…Babies laugh 200-some times a day and we adults don’t laugh at all. Just try it and see the effect it has on your body — it relaxes automatically.”

SUCCESS

from page 8 Monica’s is the first business in Washington to be certified as a “place of hospitality,” which means it has adopted hospitable practices and is giving more than it gets. The business also supports a variety of feeding programs and other causes, and supports farmers by sourcing local produce. “The best part about owning the business is that it’s fun,” Downen said. “Serving people is fun, and not just the customers but the staff and the needs of the community.”


Kitsap Bank goes Main Street with Community Partner Program

Kitsap Bank presented $30,000 in donations to three Washington Main Street partners as part of the bank’s annual Community Partner Program commitments. The donations fall under the Main Street Tax Incentive Program, which provides B&O tax credits for businesses who invest in downtown revitalization efforts, including economic development activities, designed to support and promote the local small business community. The recipients, each receiving $10,000, are Bainbridge Island Downtown Association; Gig Harbor Waterfront Association; and Port Townsend

Main Street Program. “Kitsap Bank is proud of our longstanding tradition of community involvement,” stated Executive Vice President and CFO Tony George. “To us, being the community bank and the community’s partner go hand-in-hand. We applaud the efforts of these Main Street organizations, which are successfully blending historic preservation and economic vitality of our historic commercial districts, while maintaining our small-town quality of life.” Through the Community Partner Program, Kitsap Bank has invested over $1

million and countless volunteer hours over the past six years to non-profits and civic organizations in the communities we serve. “These are tough times for small nonprofits,” said Andrea Mackin, executive director of the Bainbridge Island Downtown Association. “We want to be sure we are here to deliver the programs and services that are essential to supporting our downtown businesses.” “Kitsap Bank’s investment in the continued recovery of our local downtown economy is an important vote of confidence for the value of the Main Street program here on Bainbridge Island.”

Kingston techie wants to help businesses take advantage of technology together,” she said. McKoy has been working in the nonprofit sector for more than 20 years, but keeping her finger in technology at the same time. For the re-launch of her business, she has teamed up with other professionals for video production, marketing and other services. She hopes to offer more educational opportunities like workshops and says she still gives away a lot of her work,

as she did during the “hobby” days. “What people really want to know is how to maximize things like social media, how to get video that’s compelling to tell their story, how to make sure their websites can stay looking good on mobile devices,” she said. “A lot of people, especially with home-based businesses, need to understand the strategy to get themselves out there and use technology to their advantage.” February 2012 Kitsap Peninsula Business Journal • KPBJ.com 13

By Rodika Tollefson Kim McKoy considers herself an early adopter of technology, and has been keeping up with new trends for 30 years. Building websites since 1994, she can do a little bit of everything — from making mobile applications and creating video to helping other professionals self-publish ebooks. “I’m such a huge fan of technology. I believe it can help you be productive but a lot of people are afraid to use it because they think it will take a lot of their time,” she said. McKoy recently relaunched her 6-year-old Kim McKoy business, McKoy Media, with the focus on mobile apps and niche sites. One of them, 2bigwomenonthecouch.com, which she created with a friend, is a social networking site for plus-size women and has about 2,000 members, she said. “Things can be challenging for plus-size women so we built a community,” she said. After creating the site as a hobby, McKoy realized there was a need and since then has built others for groups such as poodle owners and motorcyclists. The mobile apps are another niche for McKoy Media (mckoymedia.com), but McKoy said her goal is to also educate people that they need a big-picture strategy, whether they work with her or someone else. “It’s hard to keep up with technology so it’s important to have a nice package that will get results, have a blueprint for the different strategies instead of piecing it


KEDA and partners strengthen economy... One business at a time By John Powers, Executive Director Kitsap Economic Development Alliance I am often asked: “What does the Kitsap Economic Development Alliance do; how does it help to develop our local economy?” My “elevator pitch” answer is: “We deliver business development services to our clients — businesses small and large, local and global — to help them grow and prosper in Kitsap County; and we do so free of charge due to the financial commitment of our many investor partners, from both public and private sector partners. In short, KEDA practices economic development as a community-wide team sport executing client-based business retention, expansion and recruitment strategies which are aimed at attracting investment and creating jobs… one business at a time. KEDA was established in 1983 as part of a statewide economic development system comprised of over 30 individual county economic development organizations working in concert with the Washington State Department of Community, Trade and Economic Development (CTED) — now the Washington State Department of Commerce (DOC). This Affiliated Development Organization (ADO) system

operates to make sure Washington State, and its many regional economies, effectively compete in an ever more competitive global economy. This system is designed to bring together local government and business to collaborate and co-invest in their respective local — regional economies. In Kitsap, 18 local public entities (County, Cities, Ports, Tribes, Special Purpose Districts, educational institutions and workforce agencies) partner with over 40 private sector business investor partners to fund and guide the day-to-day, clientbased economic development work of a team of 5 economic developers. This team works directly with businesses to help retain, expand and attract new business and the capital investment and job growth that follow. This business advice and consultation work involves identifying needs and orchestrating solutions — solutions often found in access to and integration of various business capital sets: Human Capital, Financial Capital; Infrastructure and Real Estate Capital; Innovative and Entrepreneurial Capital; Market and Client Development Capital; Relationship Capital; and, Social-Political Capital. Since 2008, KEDA has partnered to

assist over 200 clients in securi ng over $70M in new business transactions. A recent example of the type of collaborative economic development casework KEDA orchestrates involves one of the newest members of our business community — Profile Composites North America — an advanced composites manufacturer focused on training and hiring veterans. The following is a summary of the case in the client’s own words: “In 2010, Profile Composites was planning an expansion into the U.S. market from its existing location in Sidney, BC. Both the Tri-Cities and Portland were the original frontrunners. Discussions with the National Center for Manufacturing Sciences (NCMS) led to an introduction to the Kitsap Economic Development Alliance. KEDA then successfully applied for a $100,000 WIA grant on Profile’s behalf. This grant created a public-private partnership with newly incorporated Profile Composites North America (PCNA) and Olympic College to train Veterans in advanced composite manufacturing. KEDA also facilitated: * site search for Kitsap locations; *introductions to potential strategic partners; *teamed with strategic stakeholders including elected

officials, the Washington State Department of Commerce, and WorkSource; and, *provided ongoing advice and resources critical to small business development.” Geoff Wood, CEO – Profile Composites North America Today, PCNA occupies 7,800 square feet of industrial space in Bremerton and has completed its first training program in partnership with Olympic College, from which it hired its first manufacturing team. With an initial workforce of eight, they have just begun manufacturing operations. Initial products include assistive devices geared towards our Wounded Warriors, and research and development in the renewable energy sector. As PCNA grows, it anticipates further diversifying its product line and leveraging its composite materials expertise to participate in our region’s expanding aerospace industry. And, that’s how you grow an economy and create jobs… one business, one client at a time.

Bainbridge Island Downtown Association announces strong year ahead

14 Kitsap Peninsula Business Journal • KPBJ.com February 2012

After a year of limited operations, the Bainbridge Island Downtown Association (BIDA) has announced that the organization is back up and running with the return of its former executive director, Andrea Mackin. Following the loss of City-based funding in 2010, the Downtown Association made the difficult decision to scale back operations in 2011. The loss of the organization’s advocacy and Main Street economic revitalization efforts were particularly felt by locally owned, small businesses during a year when downtown

merchants were hard-hit by the effects of Winslow Way Reconstruction and the continued recession. BIDA made the move to reengage Mackin during the final quarter of 2011 with hopes of securing operating funds that would allow the Downtown Association to return to normal full-time operations. Through generous contributions from local members of the business community via the Main Street Tax Incentive program, BIDA now enters the new year with a solid operating budget and programming that will support the continued economic recovery of downtown Winslow.

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“These are tough times for small nonprofits,” said Mackin, referring to the organization’s funding challenges. “We want to be sure we are here to deliver the programs and services that are essential to serving our downtown business community.” Mackin also noted, “A vital main street contributes to the overall economic health of our entire community, not just the downtown.” Thanks to a record level of contributions from some high-level supporters, BIDA will “now be able to relax and focus on providing the support our downtown businesses really need.” BIDA will continue under the direction

of Mackin and Downtown Association Program Coordinator, Sina Pradel. Programming will include two new springtime events, Dine Local Downtown, a multi-week promotion featuring local island restaurants, and the Bainbridge Island Wine Festival in late April. A return of 2011’s pop-up event, Winslow In White, is also expected. BIDA will continue to work with community partners the Bainbridge Island Chamber of Commerce, Sustainable Business Network, and Bainbridge Island Tourism Alliance. For more information, call (206) 8422982, or visit www.bainbridgedowntown.org.

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KPVCB hosts international journalists and travel writers Eight journalists, travel writers, and the public relations director for Emirates Airlines made a visit recently to learn more about the Kitsap Peninsula. According to Patricia Graf-Hoke, Executive Director for the Kitsap Peninsula Visitor and Convention Bureau (KPVCB), the journalists, representing some of the largest news publications in India, were in the Puget Sound area as take part of the promotion for the Emirates Airline’s non-stop Seattle to Dubia service aboard the Boeing 777 scheduled for lift-off starting March 1. The public relations opportunity was the result of a partnership with Hill and Knowlton Strategies, an international public relations company and the KPVCB. Newspapers represented by the writers include The Economic Times, India’s leading daily financial newspaper second in the world after The Wall Street Journal, Deccan Herald, Bangalore, with a daily circulation over 800,00, Lonely Planet and Conde Nast Traveller and others. “These publications target millions of readers including travelers with the disposable income to spend on international travel, new technology and western lifestyle experiences.” Graf-Hoke said. The group was spending two days touring the Puget Sound region in their official capacity, and decided to make a ferry ride and visit to Kitsap Peninsula one

of their stops. Due to their tight schedule, the group chose the Seattle-Bainbridge Island ferry and requested a tour of downtown Winslow and a briefing about the area during a working lunch session. Bainbridge Island City Councilman, Steve Bronkowski greeted the visitors when they arrived and Andrea Mackin, Director of the Bainbridge Island Downtown Association, led a tour down main street. Commissioner Rob Gelder welcomed the group at the luncheon and joined Graf-Hoke during the presentation about the Kitsap Peninsula. “The recent snow storm and the short

time frame, created some special challenges, but thanks to the help from local partners, we were able to treat the writers to a memorable visit and briefing on what the Kitsap Peninsula and its communities have to offer to visitors from around the world,“ Graf-Hoke said. The KVPCB also partnered with local Chambers of Commerce and downtown associations to prepare visitor packets about local communities and the region. The packet included a thumb drive featuring print, digital, and video files. “It was a wonderful chance to tell our

story to an international audience and show-off the Kitsap Peninsula and what its communities offer to visitors to Puget Sound and around the world. This proves our branding and marketing strategies are having an impact, and our local tourism industry here on ‘the natural side of Puget Sound’ is alive and well.“ added Graf-Hoke. The Kitsap Peninsula Visitor & Convention Bureau was established in 1983 to market the Kitsap Peninsula region. Its offices are located in Silverdale, and may be reached at 800-337-0580 or info@visitkitsap.com.

Rimmer new Martha & Mary director of development

Luba’s Floorcovering announces staff changes Luba’s Floorcovering Inc. announced that Teresa Ferreria and Ashley Hundson have been hired as office assistants, and Jessica Lambert has been promoted to office manager. Luba’s Floorcovering Inc. is a woman owned flooring installation business and has provided residential and commercial installation for over 17 years. More information is available at www.lubasinc.com.

February 2012 Kitsap Peninsula Business Journal • KPBJ.com 15

Martha & Mary announced that Paula Rimmer has joined its leadership team as the director of development, a position left vacant when previous Director Rob Gelder replaced Steve Bauer as Kitsap County Commissioner. Rimmer had been an associate director at the Seattle Opera since 2004 and was that organization’s lead staff member for planning giving and major gifts. Rimmer holds a degree in Theatre/Speech and Political Science from Cornell College in Iowa. “Paula’s passion for the not-for-profit sector and rich experience spanning 25 years in fund development makes her an ideal fit for this position,” said Chad Solvie, CEO of Martha & Mary. “She has joined a committed team focused on ensuring Martha & Mary provides exceptional care to children, adults and seniors on the Kitsap Peninsula.”


AWB gubernatorial debate announced June 12 event set for Bing Crosby Theater in Spokane The Association of Washington Business (AWB) has announced it will host its fifth gubernatorial debate on June 12 at the historic Bing Crosby Theater in Spokane, in partnership with Greater Spokane, Inc. The debate will feature U.S. Rep. Jay Inslee (D) and Washington State Attorney General Rob McKenna (R). Austin Jenkins, Olympia correspondent for the Northwest News Network, will moderate the debate. In addition to the gubernatorial exchange, AWB will also host a debate between candidates for attorney general with Reagan Dunn (R) and Bob Ferguson (D). Jenkins will also moderate the attorney general debate. The first gubernatorial debate AWB hosted was in 1992 between Mike Lowry (D) and Ken Eikenberry (R). In each election since then, AWB has hosted a gubernatorial debate between candidates, although it has traditionally been in September in conjunction with the association’s annual Policy Summit event. Given the recent changes in the state’s primary system, the event was moved to June this year. “AWB has a long history of hosting one of the premiere debates in the race for Washington state governor. With so many pressing issues facing our state – from the economy to the environment, trade, taxes and education – the race for governor has never been more critical to the future of our state,” said AWB President Don Brunell. “We are excited to welcome both candidates to this event and look forward to an open discussion of the top issues facing Washington state voters.” “We’ve got member businesses of every size, scope and industry. But they all have a stake in Washington’s future, as taxpayers and employers,” added Brunell. “There’s never been a better time for our members to get engaged in the election process. We are honored to again host this event and provide the candidates for both governor and attorney general with a chance to have an open dialog on key issues.”

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InTheWorks, Inc. (ITW) announces that Ted Treanor joined its management team. InTheWorks is a Kitsap County-based clean technology company with plans to expand operations within the county. Scott Reynvaan, ITW’s CEO and co-founder, said, “Ted has shown great value as a trusted advisor over the years. He will join us in strategically positioning the company into its global leadership role. Our next generation catalytic converter will transform the catalytic industry for the combustion engine. Ted is particularly adept at developing and executing the roadmap to high growth. He has been instrumental in helping to form lasting relationships with Pacific NW National Laboratory, SAIC, U of W, advisors, and investor relations. Ted is also leading our proposals to the U.S. Navy, Dept. of Energy, and EPA to fund demonstration projects.” When asked about his new position, “Helping InTheWorks make a local and global difference with economic development, clean energy, reducing greenhouse gases, national security that improves the quality of bodies of water like Puget Sound, our soil and air, all with one product… It doesn’t get any better than that!” Most recently Treanor was the interim executive director of Habitat for Humanity of Kitsap County. “Working with volunteers, staff, donors, partners, sponsors, and board of directors has been one of the most rewarding experiences of my life. Habitat is an amazing organization that helps people to achieve the American dream of home ownership. Habitat has much to offer each of our partner communities throughout Kitsap County.”

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Poulsbo Teen Donates over $10,000 to UW Cancer Research Greer Gates, 14 years old, makes and sells jewelry to raise money for cancer research at the University of Washington Medical Center. Her 2011 sales were double her goal and generated more than $10,600.00 in total to UWMC. The money goes to support research and prevention of Ovarian and Breast Cancer led by Dr. Elizabeth Swisher. Gates began her project at age seven to show support for her friend Nancy Buhrman Balduf who had Ovarian Cancer. Since then, she has raised over $37,000

Transcendental Meditation returns to the Peninsula

Reliable Storage’s Port Orchard location now open Reliable Storage has expanded and just opened its seventh self-storage site. Located in South Kitsap, off of Highway 16 at the Mullinex Rd. exit (next to Stokes Auction), its newest facility has a state of the art security system, features heated units, on-site manager and offers spacious RV & Boat Storage. “As a local family-owned business since 1981, we are excited to now be part of the Port Orchard community,” says site manager Dennis Cornelius. “We are known for our friendly staff and convenient, secure facilities with on-site managers.” For additional information, contact Cornelius, site manager, at (360) 895-1800 or PortOrchard@reliablestorage.com.

Photo: Greer Gates and Dr. Elizabeth Swisher

The South Kitsap Helpline announces the agency’s officers for its board of directors. Board co-presidents are Kareen Stockton and Gary Lindstrom copresidents; Don Cheney, vice president; Danny Brown, treasurer; and Rayanne Brown, secretary. With help from the community, the South Kitsap Helpline provides groceries and other critical services to more than 50,000 children, adults and senior citizens in crisis annually. For more information, call (360) 876-4089 or visit the web site at wwww.skhelpline.org.

February 2012 Kitsap Peninsula Business Journal • KPBJ.com 17

Val Mailander, Ma, PhD, retired psychologist, probation officer and TV producer/actress is offering introductory lectures and group meditations on the Kitsap Peninsula. She has taught over 1,000 people over the past 40 years. Mailander states that Transcendental Meditation (TM) is for everybody, students and elders, of all religions and philosophies. Further, she states that TM is a world renowned, scientifically validated technique that provides increased energy, intelligence and tranquility. “Peacefulness and happiness are two of the chief results of regular practice of Transcendental Meditation”, she said. “We feel that these qualities are contagious. The more people doing the TM technique in the area, the more peaceful and happy their business, family, and community become.” TM has a considerable body of research behind it, showing it to be a very effective evidence-based tool for health and wellness. The National Institute of Health has funded more than 600 research studies documenting the many benefits from a regular TM practice. These benefits include reduced high cholesterol, decreased high blood pressure, reduced stress, anxiety and insomnia and reduced atherosclerosis Ongoing lecture series are held at Poulsbo Library monthly. The next introductory lecture is Feb. 4 from 12 – 2 p.m. Email reservations to vmailander@tm.org. For further information, visit www.tm.org.

with family and friends. Gates makes jewelry all year long, and has work parties with friends who help to create the pieces. Each piece is adorned with a sea turtle charm or image to honor her late friend Nancy. Gates makes three bracelet styles, three necklace styles and most recently a Christmas tree ornament, which range in price from $5 to $12. Learn more about her project or shop online at www.myjewelsofhope.com.

South Kitsap Helpline announces new officers


18 Kitsap Peninsula Business Journal • KPBJ.com February 2012

We don’t need no stinking change! By Dan Weedin Change management is a hot buzzword in business circles today. Everywhere you turn, experts espouse ways to deal with change in the workplace, in the world, and even in your home. CEOs and executives want to learn how to manage change; implore change; beg for change; and even get exact change. Well, I’m here to tell you that you can stop. You don’t need no stinking change. You read that right. You don’t have to change. You don’t have to know how to manage it or teach it. You can go on forever doing just what you’ve been doing all these years. It’s your life and your business. No change! However, if you go that route, you need to know what you’re in for. In all decisions that we make, there are consequences — both good and bad. And let’s be honest, change management is a conscious decision. Let’s see what happens when we avoid making change in our organizations… You become stale and obsolete. You can only sell the same “stuff” to the same people for so long. Daily newspapers, phone book ad executives, and video stores all found it out too late. There’s always a bigger and better ship coming around the corner. You need vision and the ability to be nimble to stay relevant. Your people leave. Without change, people get bored. They don’t see growth or potential and will find greener grass. Maybe an even bigger problem is that they get complacent and just decline in efficiency and ability. You can’t recruit new talent. This goes along with good people leaving your business. You have a certain “street cred” (credibility for all you non-changers). Your reputation gets around and the perception of you as being dull or dynamic will either bring in young talent or repel it. You lose business. People want to work with cutting edge and vibrant organizations. If you are stale; can’t keep quality people; or run ineffective operations, then you’re yesterday’s news (which happens quicker today than ever before). You don’t have to change in business. You also don’t have to brush your teeth, eat healthy, exercise, read books, or wear sunscreen. Those all have consequences, too. If you do find yourself wanting to avoid those calamities I’ve listed, here’s a short and sweet guide to affecting change management in your organization. Do a pulse check on yourself as a leader. What do your key employees think about how well you run the organization and treat them? There are many fine experts who you can hire to run a benchmarking analysis of your leadership skills. You have to start at the top if you plan on effectively leading change. • Be very clear about your vision. Your employees, your customer base, and your entire supply chain need to know the destination. They don’t necessarily need to know the methodology to get there; but they do need to know where you plan on leading them. Change without vision is doomed to failure. Have patience. Change is a slow moving beast, especially as the organization gets larger. There is bound to be “gravitational pull” to default back to the good old days. Be patient, yet firm in the transition. Don’t quit. The worst thing that can happen is that when the going gets tough, you capitulate. This is terrible role modeling and the quickest way to slide back. In the end, the decline would be worse than had you not tried to change at all! Celebrate successes. I fear that one of the things we as humans are worst at is complimenting and rewarding good behavior. You have allies who will work hard to reach your vision. Recognize them and applaud their efforts. Pretty soon, you will find others trying to do the same. We live in a global, highly technological, and fluid business world. The economy and business practices are going to change whether you’re on board or not. You don’t have to change, but not being prepared and skilled in change management will lead to dire consequences at some point. Those businesses that embrace change, and know how to effectively manage it within their organizations, will ultimately be successful regardless of where and how the world turns. Hey can you spare some change, pal? (Editor’s note: Dan Weedin is a Poulsbo-based management consultant, speaker, and mentor. He leads an executive peer-to-peer group here in Kitsap County where he helps executives improve personally, professionally, and organizationally by enhancing leadership skills. He is one of only 32 consultants in the world to be accredited as an Alan Weiss Master Mentor. Reach Weedin at (360) 697-1058; e-mail at dan@danweedin.com or visit the web site at www.DanWeedin.com. © 2012 Dan Weedin. All Rights Reserved.)

Local Washington Women Lawyer’s JEC to conduct interviews The Kitsap County Washington Women Lawyer’s (WWL) Judicial Evaluation Committee (JEC) will again be conducting interviews for individuals seeking judicial appointments in Kitsap County. The JEC works to produce meaningful evaluations of judicial candidates. The evaluation goals of Kitsap WWL are: • To sustain and strengthen the judiciary through the appointment and election of excellent judicial candidates; and • To encourage qualified candidates, sensitive to women’s issues both within the profession and under the law, to seek and obtain positions of responsibility and stature within the legal profession and community in general. The Kitsap WWL provides a rating for a judicial candidate for election or appointment to an open Kitsap County position as exceptionally well qualified, well qualified, qualified, unqualified, or not rated. The ratings are valid for two years.


February 2012 Edition

Events And Activities Wednesday, February 1st Auction Committee Mtg., NOON Family Pancake House — KITSAP WAY Thursday, February 2nd Developers Council Mtg., 7:30 a.m. HBA Friday, February 3rd Peninsula Home & Garden Expo Exhibitor FINAL payments due For our March 16, 17, & 18 Expo. Thursday, February 9th President’s Cocktail Reception Officers/Directors/Chairs/Past Presidents Two Blocks Up, Bremerton RSVP REQUIRED 5 p.m. - 7 p.m. Saturday, February 11th First Aid/CPR 10 a.m.-12 p.m. HBA PRE-REGISTRATION REQ. $50/member $60/non-member Tuesday, February 14th Spring Home Show Comm. Mtg., Noon HBA Thursday, February 23rd Executive Committee, 2:00 p.m. Government Affairs Cmte., 2:30 p.m. Board Meeting, 3:30 p.m.

2012 Officers and Directors Installed Early in January, the Home Builders Association held its annual Installation and Awards Banquet. With a terrific turnout (almost 150 people), high spirits, and the support of several Kitsap area elected officials, the HBA kicked off 2012 in style. For a complete list of the 2012 HBA leadership, please see the right margin listing in this newsletter or visit our website at www.kitsaphba.com. This fun evening includes recognition of the dozens of board members, and committee chairs that help to guide the HBA through the year. 2011 President, Justin Ingalls elected to give a President’s Award to a group of members that have given tirelessly to the interests of our membership on a variety of code and land use policy processes. Through their efforts the citizens of Kitsap County have benefitted with better outcomes. As is true each year, the HBA also awarded the Associate Member of the Year, Remodeler Member of the Year and the Builder Member of the Year. These awards are given to the member in each category that has consistently worked for the betterment of the Association and this industry. Please congratulate and thank them for their hard work. The HBA continues to be strong. We have 300 member companies, meet regularly with area elected officials to discuss the industry and the economy, and continue to offer our members great services and benefits. The HBA is 2011 President’s Awards. Back row from often the voice of the consumer since left: Mark Kuhlman, Justin Ingalls, & many out there aren’t aware of the Mark Eisses. Front row from left: Norm way policy decisions affect them as Olson, Robert Baglio, and Jeff Coombe. homeowners today or in the future. The industry and the public are served well by the high caliber membership we have and the professionalism of our leadership.

Tuesday, February 28th Spring Home Show Comm. Mtg., Noon HBA

Dee Coppola, Associate Member of the Year

David Godbolt, Remodeler Member of the Year

2012 BUILDER & ASSOC. DIRECTORS Derek Caldwell, CGB • Judy Granlee-Gates Jason Galbreath • David Godbolt, CAPS, CGP, CGR Kevin Hancock • John Leage Robert Lubowicki • Leslie Peterson, CGA Shawnee Spencer • Jim Way, CGB

2012 STATE DIRECTORS Robert Baglio • Derek Caldwell, CGB Lary Coppola • Judy Mentor Eagleson Justin Ingalls, RCS • Wayne Keffer, CGR, CAPS Robert Coultas • Ron Perkerewicz

2012 ALTERNATE STATE DIRECTOR John Armstrong • Karla Cook • Walter Galitzki Greg Livdahl • Brent Marmon

LIFE STATE DIRECTORS Bill Parnell

2012 NATIONAL DIRECTORS Derek Caldwell, CGB • Judy Mentor Eagleson

2012 ALTERNATE NATNL. DIRECTORS Michael Brown • Jeff Coombe

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

2012 COUNCIL & CHAIRS Build a Better Christmas. . . Randy Biegenwald Built Green . . . . . . . . . . . . . . . . Walter Galitzki By Laws & Nominations . . . . . . Justin Ingalls Developers Council . . . . . . . . . . . . Rick Cadwell Golf Classic . . . . . . . . . . . . . Shawnee Spencer Govt. Affairs Cmte . . . . . . . . . . . Robert Baglio Remodelers Ccl Chair. . . David Godbolt, CGR, CAPS Membership . . . . . . . . Judy Mentor Eagleson Parade of Homes . . . . . . . . . . . . . Dee Coppola Peninsula H&G Expo. . . . . . . . . . Ardi Villiard Peninsula H&R Expo . . . . Volunteer Needed

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

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February 27th - 29th BIAW Board Meetings Olympia WA

Wayne R Keffer, Builder Member of the Year

2012 OFFICERS President . . . . . . . . . Wayne Keffer, CGR, CAPS First Vice President. . . . . . . . . . . . . . . Robert Baglio Second Vice President . . . Judy Mentor Eagleson Treasurer . . . . . . . . . . . . . . Randy Biegenwald Secretary . . . . . . . . . . . . . . Dee Coppola, CGA Immediate Past President. . . Justin Ingalls, RCS


February 2012 Edition

A membership in a professional trade organization like the Kitsap HBA makes the statement that I care about my business, Wayne R Keffer Construction Inc. customers and employees and ultimately elevates me above 2012 President my competition. With the year still early I thought it would be good to highlight some of the opportunities available with the homebuilders. With health insurance being such a huge expense for small business, and KPS (large provider in our community) cutting back on business and individual plans it has left many trying to figure out what to do to get coverage for them and their employees. I was recently talking with a member that was excited about the BIAW heath insurance plan that is open to all member companies. The plan provides group insurance for groups with as few as 2 members, and the plan being one of the largest group plans in the state provided a great rate that save our members money. If you are looking at coverage options please call the HBA office for a Health Insurance quote request form (360-479-5778) or contact Capital Benefit Services directly about the health insurance options available through the HBA. The better Educated you are the more opportunity is created for you and your company. We all know “that guy” that says, “I’ve been doing this for 20 years.” The implied meaning is that they are better than their competitor due to their years of experience. Does it though? Often, it seems ‘that guy” has just repeated the same first year 20 times over, and continues to perform poorly. To those that seek success I would say look into the variety of designations available to contractors through NAHB, BIAW, and the local HBA. Education could be your first step toward not repeating the same year again. The HBA offers a pathway to success by offering educational opportunities programmed by the NAHB University of Housing. The classes offered vary greatly, from business management, accounting, green building technologies, marketing, and aging in place training to name only a few. The HBA also provides required first aid classes for our members and their employees. Having taken these classes they are inexpensive, to the point, and offered several times each year. A class will be held on February 11th and space may still be available. Call the HBA office for details on this class or the onces scheduled next. Be a part of the conversation. Have your voice heard. As a member of the HBA you are part of a proactive voice for business and the development community in Kitsap County. Being a member is like getting a seat at the table. With leadership actively participating in the community we are part of solutions that bring balance to regulations that would hurt business and degrade from the quality of life in Kitsap County. For this I am especially thankful to our Associate members. Our Associate members are often the ones that best understand the positive influence the HBA has in our community. Recently an Associate HBA member said it this way, “If you want to play, the place to be is the HBA.” Lastly, if you believe as I do that the relationships you develop are key to success in everything you do, whether at home, church, or in business, the HBA creates the opportunities for you to develop long term mutually beneficial business relationships. Join the HBA, or start participating if you’re already a member. From our annual golf tournament, to simple socials after work, there are many opportunities throughout the year to build those connections. Then when you need the services that an HBA member provides you will know who to call and in turn so will they. Thanks for the opportunity.

Wayne Keffer CGR, CAPS

2012 is off to a fast start on the regulatory and policy side of things. Throughout Kitsap County, each jurisdiction is at CGP work updating their shoreline master program. The County is Executive well underway on this effort, Vice President and also updating their urban growth areas since the 2006 comprehensive plan was remanded. Additionally, the county is working to finish its changes to Title 16 (a process started last year) and just beginning the changes to Title 21. All these processes are complicated and time consuming. The HBA leadership is working on each of these issues for our members, but anyone in the construction industry, or that relies on the construction industry, should take the time to become familiar with the issues. Testifying at local hearings is meaningful and important too. Shorelines — State law requires the shoreline master program for shorelines of state significance. These are both saltwater and fresh water. The biggest impact will be on current shoreline property owners (residential and commercial; developed or undeveloped). In this process each jurisdiction is defining the types of shoreline in their jurisdiction and based on that classification, each jurisdiction will decide what uses are appropriate and where (even if what’s there now is different). Title 21 — In the County’s ongoing effort to improve their processes and streamline some of their codes they will be updating their Land Use and Development Regulations. A comprehensive definitions section will be added from the work completed in the Title 16 update as well as other clarifications related to process and review. Both Title 16 and 21 changes will take effect in May. The last changes to Title 16 were implemented almost two years ago when the Board of County Commissioners elected to remove themselves from hearing closed record land use appeals (setting the rules but choosing to separate themselves from the outcome). A review was required in that amendment and no such review has yet materialized. Urban Growth Area Re-sizing — Just when you thought you knew what you could do with your property, it is all in doubt again. The court remand and the Hearings Boards decisions make this effort a requirement but the outcome is a local decision. The HBA leadership and Developers Council are actively working on this process, but again all our members are encouraged to participate. A public hearing will be scheduled for February to hear comment on the draft UGA alternatives. Watch the County’s website for deails or call the HBA. All these, and other code/regulation process affect the housing economy. Some directly affect housing and some more indirectly. Whether direct or indirect, the economy continues to require support and we will continue to send that message to all area elected officials. If you have any questions about these or other policy processes underway, please contact the HBA.

Teresa Osinski


February 2012 Edition

Government Affairs Committee

It’s the Economy Stupid

As Bill Clinton not so eloquently stated, “It’s the economy stupid.” Well, I could Robert Baglio not agree more. Our economic The BJC Group recovery is languishing. We all 2012 Chair need to do what we can to help and support our local economy. So what can we do? Well the main thing you can do as a consumer is “Buy Local.” The importance of supporting the local economy by buying your goods and services from local businesses cannot be over emphasized and this applies to all forms of business and enterprise. As a local contractor I cringe when I drive around and see a construction project being built by a non-local contractor. The majority of the money paid to this contractor leaves the area and will never be seen again. Though this example hits home with me, this applies to all forms of business and needs to be taken into consideration every time you purchase a good or service. Ask yourself, can I buy this locally? When you spend your money locally, that money gets reinvested into the local economy multiple times in many forms. Since I am in the construction industry, I will use a typical construction project as an example. When you select a local general contractor to build your project the money paid to that contractor gets directly reinvested in the form of wages and salaries paid to their employees. The majority of these employees live locally and go to the local supermarkets and stores to buy their goods and services. In turn these local supermarkets and stores pay their employees who then also spend the majority of their money locally. It truly is a trickle down effect. That dollar gets reinvested and spent many times and supports multiple local companies. But remember this also applies to all the subcontractors and suppliers that are working on the project. On a typical construction project there is somewhere between 10 and 20 subcontractors and suppliers working on the project (the earthwork contractor, the concrete supplier, the mason, the framer, the lumber supplier, the insulator, the roofer, the window supplier, the floor covering installer, the drywaller, the painter, the plumber, the HVAC contractor, the electrician). All of these companies reinvest the money that was paid to the general contractor back into the local economy. Assuming each one of these companies has 3 - 4 employees, a conservative estimate, this equates to approximately 56 people reinvesting the money back into the local economy. So whether you are a single family household, a local business owner, a health care provider, a church, or a governmental agency the affect of spending your money locally is crucial to supporting our local economy. I would also ask all the governmental agencies and elected officials that before you sign or approve that next contract ask your staff, “Is this a local company or can we buy this good or service locally?” Review your purchasing practices. Are you doing all you can to “Buy Local?” It does make a difference. Though I am aware that there are laws that require bidding and competition, which is good, that bidding and competition can be between local companies to ensure that money will be spent locally. Kitsap County has many qualified, skilled, and experienced businesses. Support your local community and economy and do your part, “Buy Local.”

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Need Health Insurance? The Home Builders Association of Kitsap County is a proud member of the BIAW Health Insurance Program. This insurance is managed through Capital Benefit Services/EPK & Associates. A variety of plans are available depending on the number of employees you have. Options from High Deductible Health Plans to Enhanced Plans, and numerous options in between are available. Some area businesses may have recently been notified that their carrier can no longer insure them due to the small number of participants in their group/employ. Check out EPK & Associates to see if their options may be the solution you need. Companies with as few as 2 participants may find a premium to fit their needs. Membership in the HBA is required to purchase the insurance, but you can get a free and fast quote before you decide. For a health insurance application form, please call the HBA office 360-479-5778 or contact Caital Benefit Services directly at (800) 545-7011 ext. 6.


February 2012 Edition

Welcome New Members LesterHunter - LWH and Son Construction LLC 10523 Seabeck Highway Seabeck, WA 98380 360-509-0497 Email:HuntersLL@msn.com Sponsor:Bruce Giese

Marty Rank - Ranks Construction Company Inc. 11717 NW Quiet Waters Seabeck, WA 98380 360-731-4055 Email: ranksconst@yahoo.com Sponsor: Wayne Keffer

Gayle Briggs - HiLine Homes 11306 62nd Ave E Puyallup, WA 98373 253-840-1849 Email: gbriggs@hilinehomes.com Sponsor: Robert Baglio

Brett Warner - Strategy Real Estate Inc PO Box 5526 Bremerton, WA 98312 360-405-0077 Email: bwarner@strategyrealestate.net Sponsor: Randy Biegenwald

Thank You Renewing Members Over 5 Years Fire One Inc Inex Finish Action Services Corp

Over 20 Years Kitsap Sun (21) Over 10 Years Paul Ogilvie Construction Salisbury Woodworking Inc

Under 5 years Homewood Construction LLC Elite Exteriors

The Biggest & Best Home Show West of Seattle!® March 16, 17, & 18, 2012 Kitsap Fairgrounds and Event Center Three buildings! Vendors inside and out! Landscape displays! Do it yourself information seminars! Master Gardeners on site! Habitat for Humanity’s Builder Surplus SALE! Answers for every question from hundreds of vendors! NEW This year! Come see:

Ciscoe Morris, Saturday afternoon! - Sponsored by Puget Sound Energy We are always looking for new and interesting vendors. Our booths are competitively priced and we invest in significant Expo promotion throughout the Kitsap region. The Peninsula Home and Garden Expo is brought to you by the Home Builders Association of Kitsap County, Kitsap Sun, Wave Broadband, Kitsap Credit Union, and Puget Sound Energy. Visit the HBA website for details at www.kitsaphba.com and in February begin monitoring the details at www.kitsaphbahomeshow.com for updates on informative seminars, events for the kids, and late additions to the vendor list.

Be Aware of Fake ‘Yellow Pages’ Scam; Foreign Operation Targeted Small Businesses and Nonprofits in United States and Other Countries At the Federal Trade Commission’s (FTC) request, a federal judge has temporarily halted a European-based operation that has allegedly bilked small businesses and nonprofit organizations, including churches, out of millions of dollars by deceiving them into ordering and then paying for unwanted listings in online business directories. According to court papers filed by the FTC, the defendants operate their scheme from Palma de Mallorca, Spain, using corporations based in England and the Netherlands. Since 2009, they have sent unsolicited faxes to churches, doctors’ and dentists’ offices, and local retailers in the United States, Canada, Australia, and possibly other countries. Each fax sent to a U.S. business or nonprofit includes a name such as YellowPageIllinois.com, depending upon the location of the organization, and a “walking fingers” logo similar to the one commonly associated with local yellow pages. The FTC alleges that these faxed forms falsely suggest that organizations have a pre-existing relationship with the defendants. The forms contain information about the business or nonprofit, and a Yellow Page ID number, and instruct the recipient to confirm and update the information and sign and fax the form back by a certain deadline. Buried in fine print at the bottom of the form is the only indication that the fax is a solicitation for new business and that organizations that return the form are ordering an $89 per month, two-year registration in the defendants’ online directory, payable a full year in advance. According to the FTC, organizations that return the form then receive a faxed invoice seeking payment of $1,068 for 12 months of directory listings. They are directed to make payment to Yellow Page B.V. at a New York City address. The defendants often tell businesses or nonprofits that try to cancel that the cancellation period has expired, and that they intend to enforce the contract. The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC online at www.ftccomplaintassistant.com or call 1-877-FTC-HELP (1-877-3824357). The FTC enters complaints into a secure, online database available to law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer issues at www.ftc.gov/consumer. For additional information, you can call Rozina C. Bhimani, FTC’s Midwest Region (312)-960-5634 Re:Yellow Page Marketing (FTC File No. 1123119).

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HBA elects new officers and directors The Home Builders Association of Kitsap County (HBA) celebrated the installation of officers and directors as well as recognized the volunteers that donate their time to the Association and its members. Included in this event was the annual recognition of the Associate, Remodeler, and Builder members of the year. Dee Coppola with Wet Apple Media was recognized as the 2011 Associate of the Year for her unrelenting support of the Association and its members. Remodeler of the Year was awarded to David Godbolt, Sentinel Construction and Consulting for his service as Kitsap HBA Remodelers Council chair and his support of HBA activities and outreach. Wayne R. Keffer, WRK Construction, was awarded the 2011 Builder of the Year award. Keffer was also

installed as the president of the Association. Finally, 2011 President Justin Ingalls, Kitsap Trident Homes, awarded five members with the President’s Award for service above and beyond any expectation. Those recipients are: Norm Olson, NL Olson and Associates; Robert Baglio, The BJC Group; Jeff Coombe, JCM Property Management; Mark Eisses, MAP Ltd; and Mark Kuhlman, Team 4 Engineering.

Wayne Keffer

Dee Coppola

TRC completes project for Harrison in Poulsbo

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Olympia Federal Savings Belfair branch, which opened in December 2010, was recently awarded LEED Gold Certification. LEED, or Leadership in Energy and Environmental Design, is an internationally recognized mark of excellence in green building. It provides building owners with a framework for identifying and implementing practical and measureable sustainable building design, construction, operations and maintenance solutions. LEED certification provides independent, third-party verification that a building was designed and built using strategies aimed at achieving high performance in key areas of human and environmental health: sustainable site development, water savings, energy efficiency, material selection and indoor environmental quality. Buildings are rated using six separate areas of criteria for evaluation. The Olympia Federal branch is located at 24081 NE State Route 3, and replaced an existing branch, which had served Belfair area customers for the past 33 years. The new office features solar roof panels and radiant floor heating among the many environmental aspects. The 5,387square-foot building also has 1,316 square feet of leasable space available for an additional tenant. “When we began work on our new branch in Belfair, our goal was to not only build a new customer-friendly branch for our customers, but to also do it in the most environmentally conscious way possible,” said Lori Drummond, Olympia Federal Saving president. “We are extremely proud of the LEED Gold Certification of our efforts. We believe it shows our desire to be a good neighbor in Mason County.” For more information on Olympia Federal Savings visit www.olyfed.com.

Partners In Success Pacific Northwest Title Sales Team... Left to right: Lori Bullard, Sales Representative/Title Officer, 14 years; Vickie Lawrence, V.P./Sales Manager, 9 years; Kelsey Kilen, Sales Support, 3 years; Mindy Teigen, Sales Representative, 6 years; Julie Cooper, Lender Representative, 23 years

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February 2012 Kitsap Peninsula Business Journal • KPBJ.com 23

Tim Ryan Construction, Inc. (TRC) announced the project completion for Harrison Medical Center CT scanner room remodel at its Cherry Avenue location. The remodel included finishing a new space to receive Harrison’s latest CT machine, the Toshiba Aquilion16. The project included upgrading the radiation protection required for this machine and generally new finishes throughout. This is the first project for Tim Ryan C onstruction within Harrison Hospital since its staff completed the ASHE Healthcare Construction Training Certificate training last summer. “We were able to incorporate what we learned in the training with the reality of constructing in a fully operational 24/7 hospital setting” said Craig Frazier, superintendent for TRC. Gary Maples, project manager with Harrison Medical Center Design and Construction Department noted that “TRC completed the project on time and on budget and did it during the holiday period, which can be difficult in itself. We are pleased with the attention to customer satisfaction that TRC exhibited”. For more information, contact Dan Ryan at (360) 779-7667 or visit the website at www.TimRyanConstruction.com.

Olympia Federal Savings belfair branch earns LEED Gold certification


HBA announces new builder award The Home Builders Association of Kitsap County announces its new Builders Best Award. The Builders Best Award will be recognizing excellence in new construction. The entry categories include Spec Home, Custom Home, Commercial Projects, Commercial Built Green, Residential Built Green, Aging in Place/Universal Design and Multifamily homes. Entries will be judged in accordance to selection of building material, quality of workmanship, special or unique design

solutions, aesthetic consideration and cost to value. Projects must have been completed within 24 months of May 18. Contact HBA of Kitsap County for more information at (360) 479-5778. All entries must be received at the Home Builders Association of Kitsap County by 5 p.m., April 27. You can email the entire entry to Stephanie Buhrman at info@kitsaphba.com or mail your entry to The Home Builders Association of Kitsap Co., 5251 Auto Center Way, Bremerton, Wash., 98312.

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24 Kitsap Peninsula Business Journal • KPBJ.com February 2012

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Gosney returns to real estate at Windermere Bainbridge Island Windermere Real Estate Bainbridge Island recently welcomed Carleen Gosney to its island-based family of real estate professionals. Gosney’s years of real estate industry service has always been rooted in her connection to the Bainbridge Island community. Most recently, she explored the benefits and logistics of international marketing during a stint with Realogics Sotheby’s International Real Estate. Her move back to Windermere underscores the critical connections between local knowledge and client outcomes. Broker Jim Laws is pleased to see Gosney back on the roster of professionals at the Windermere Bainbridge office. “Carleen has always been among the top island agents, so we’re thrilled to have her,” he says. “Most importantly, her commitment to her clients is absolute and reflects our company’s mission of superior customer service and marketing.” Gosney may be reached at (206) 8425626 or at carleen@carleengosney.com.

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New services offered by Jose Technologies Jose Technologies, owned by local businessman Paul Jose, has added new services for homeowners, business owners and prospective home or business buyers. Jose has completed training as a certified formaldehyde inspector with NORMI (the National Organization of Remediators and Mold Inspectors). He has also completed training with Home Air Test, a national testing company and lab service that uses new technology to sample air and provide a comprehensive view of air quality. The new training allows Jose Technologies to provide clients detailed air quality, mold and VOC (Volatile Organic Compound) inspections, and advice on how to remove the offending compounds. The U.S. Environmental Protection Agency (EPA) has declared that indoor air quality poses a greater health hazard to humans than outdoor air pollution, with pollutant levels averaging two to five tim es higher, and sometimes 100 times higher, than outside air. Among the reasons to have a home, or a house about to be purchased, tested: Elevated VOC levels in the home can cause both short-term and long-term health issues. The U.S. Green Building Council’s recommended healthy building level is 500 ng/L. However, data from hundreds of homes measured by homeowners show the median value is 1,200 ng/L — more than twice the recommended level. Over 20 million US adults have been diagnosed with asthma, and it is also the most prevalent chronic illness among children. High VOC levels can cause asthma attacks. Therefore, finding high VOC levels and their sources can be helpful to the homebuyer and seller. Asthma prevalence and severity continue to rise and are at all-time high levels, while outdoor air pollution is declining. On average, most people spend about 90 percent of their time indoors. Many experts suggest there is a strong association with the increase in asthma illnesses and indoor air quality. Babies, young children, pregnant women, older persons, and people with respiratory or cardiovascular disease can be more vulnerable to indoor air pollution. Many newer, more energy-efficient homes do not “breathe” correctly. A home air check could potentially discover HVAC issues so they can be corrected before the home transaction takes place. Carpeting, vinyl and laminate flooring, cabinets, countertops, and other similar building materials use adhesives that “off-gas” continuously over time — even years. Many of these materials are manufactured using hazardous chemicals, some that can even cause cancer. Testing for harmful toxins that could be lurking within the framework of the house would be prudent. Soil gas from environmental contamination can seep into the basement similar to radon. A home air check can check for this contamination. Jose Technologies has been in business in the Kitsap County area since 2006. For more information, visit www.josetechnologies.com.


38 percent of homes purchased with cash By Jonathan Dienhart and Ken Lee Despite record low mortgage rates, 2011 has seen a surprisingly high level of cash home purchases. Between tight lending standards and a desperate search for yield by investors, cash purchase of homes (especially distressed properties) became even more common in 2011 than in 2010. According to data from Housing IntelligencePro, 38 percent of homes purchased in 2011 were bought with all cash. That’s up from 34 percent in 2010, and double the 19 percent rate in 2006. The trend is likely to continue in the near term, with investors being responsible for an increasing share of home purchases as prior homeowners abandon the ownership market and head back to rentals. In broader housing news, residential permitting activity rose to its highest rate in more than a year in November. The surge in activity was almost entirely due to a jump in the 5+ unit multi-family segment, most likely apartments, while single-family construction activity posted slight gains. Housing starts were also reported to have risen substantially, but the smaller sample size of the housing starts statistics resulted in the 90 percent confidence interval including zero, which means it is not a definitive indication that it was actually a gain. The figures are also seasonally adjusted, and typically November is not a strong month for starting new building projects given that winter is on the way. Nevertheless, the increases are welcome news for a housing market that needs all the help it can get. On the other hand, the concentration on the rental market suggests a continuing exodus of prior home owners toward rentals, each one representing yet another surplus single-family housing unit that will have to be absorbed by the resale market. Minneapolis recorded the lowest unemployment rate nationwide out of all the large metro areas at 5.4 percent followed by Washington, D.C. at 5.7 percent and Oklahoma City, OK at 5.8 percent. In areas with stronger labor markets, it should come as no surprise that there would be less default activity. According to data from Housing Intelligence Pro, Minneapolis saw closings of bank-owned properties fall 23 percent in the year-to-date period ending October compared to that same period in the previous year; foreclosures were also down 23 percent for that same time period. Oklahoma City experienced a 39 percent drop in REO closings and a 62 percent drop in foreclosures so far in 2011 compared to last year while Washington, D.C. saw a 20 percent drop in bank-owned property closings and a 15 percent decline in foreclosures. Healthy labor markets lead to healthier housing markets. The National Association of Realtors recently announced that this week’s release will show downward revisions in existing home sales from 2007 through October 2011. The trade group states they had over-counted the number of home sales due to various reasons so it will be important to keep an eye on how much weaker the housing market has been over the past few years than we previously thought. For additional market-level data and analysis, visit www.housingintelligence.com.

Local lender breaks housing barriers Tim Samuels featured in State Housing Commission report

Edward Jones advisor sponsors coffee club

lia sophia recently announced top honors for its Excellent Beginnings Program Achievers for their outstanding sales accomplishments and professionalism. After only 15 weeks in the fashion jewelry business, Heidi Cassel has attained certain sales levels and by sharing lia sophia with other new advisors. According to Bonni Davis, senior vice president, U.S. sales and marketing of lia sophia, “This immediate success is a result of Heidi’s hard work and dedication. lia sophia is fortunate to have this individual as part of our team and we look forward to celebrating future successes.” For more information on the Excellent Beginnings program, or on lia sophia, reach Cassel at www.liasophia.com/heidicassel.

Donald Logan, a local Edward Jones financial advisor, will be hosting a coffee club at 8:15 a.m. on Wednesday, Feb. 22 and on the fourth Wednesday of each month at Edward Jones, 2416 NW Myhre Road, Suite 102 in Silverdale. “The coffee club offers us an opportunity to learn from one another and receive market updates,” Logan said. “I look forward to keeping individual investors informed about the current market and economy, as well as have fun and get to know some of my neighbors.” Seating may be limited. To reserve a seat, call Sarah Bartley at (360) 692-1216.

Buying Strategically With a VA Home Loan I don’t have to tell you that homeownership is mathematically more beneficial than renting. You already knew that. However, I will tell you the biggest obstacle in front of military families using their VA benefit to purchase a home. It’s a fear of being transferred from their current duty station, as well as what they will do with the home if they leave. But it doesn’t have to be this way. There are ways to strategically use your VA home benefit despite the uncertainty inherent in military life. It just takes a little planning.

Buy With Resale Value in Mind The most popular price point in today’s market is between $165,000 and $225,000. Homes in this range tend to get bought quickly by first-time home buyers. The home you buy should have at least three bedrooms, two bathrooms and 1,500 square feet. Add in a decent yard, two-car garage and proximity to a military base, and your home will have a great chance of selling quickly at a favorable price if you get stationed elsewhere.

Use Rental Income to Your Advantage Your VA entitlement allows you to purchase up to a 4-plex, owner-occupied. Live in one unit, and rent the other three out — offsetting the cost of your mortgage. In addition, Kitsap County has a strong rental presence, due to the amount of Department of Defense employees and military personnel that live in the area. For example, if you purchase an owner-occupied 4-plex that cost $300,000, after taxes and insurance, your payment would be around $1,900 (4.199% APR Rates are subject to change). If you rent each unit for approximately $1,000 per month, you could live mortgage payment free and save the balance for a vacancy fund — or pay down the principal on your loan. If you get deployed or stationed elsewhere, your unit could easily become a rental unit, as well. As long as you have credit remaining in your entitlement, you can use your VA loan eligibility again if you are moved on orders.

BAH Benefits BAH should stand for “By-a-house.” Using your non-taxable housing allowance in the form of purchasing a home could be very beneficial over time. Not only is your allowance not taxed, but you can also deduct a majority of the interest you pay on your home from your taxes. This saves additional hard-earned money in taxes every year. As always, if you have any questions during the home loan process, The Legacy Group in Silverdale is here to help. We’re a respected local lending team with deep roots in the Kitsap community. Contact us to learn even more about stress-free home loans done the old-fashioned way — with trust.

Teragren Fine Bamboo Flooring announces new hires Teragren, located on Bainbridge Island, manufacturer of environmentally friendly bamboo flooring, panels, veneer, and worktops, announced that Caitlyn Kari has been named marketing communications manager, and Bryan Ripka as northwest regional sales manager. “Caitlyn brings an outstanding focus to this new position based on her experience at one of the leading sustainable organizations in the wine industry. Her understanding of sustainable supply chains, social media, and environmental ethics make her a great addition to the team. Also Bryan is an excellent addition, bringing a terrific background in green building materials, with experience on both the manufacturer and retail side of the selling equation,” said Teragren President, Mike Boshart.

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February 2012 Kitsap Peninsula Business Journal • KPBJ.com 25

It all started with a Facebook invite. Tim Samuels, a loan officer at The Legacy Group in Silverdale, received a friend request from a former middle-school classmate who needed help buying a home. Jenn Fairlie is a single mother with a full-time job at a local animal hospital. However, a divorce several years ago had left her on welfare for a time period and depleted her savings. Although she now has steady work and excellent credit, she didn’t expect to be able to buy a place any time soon. Samuels invited Fairlie to a first-time homebuyers seminar. Because she hadn’t owned a home in three years, she qualified for several programs. At the seminar, Samuels talked about House Key Bremerton, a down-payment assistance program funded by the city and administered by the Washington State Housing Commission. After a year of house hunting, Fairlie found a four-bedroom home. “The program is such a good way to get qualifying families into homes,” said Samuels. “It was really cool to see Jenn get a great place for her family with the help of House Key Bremerton. The greater community is always better off when homes are lived in.” The story was featured in the Housing Commission’s 2011 Annual Report, “A State of Change.” Samuels was also recently honored as the top Legacy loan officer in Kitsap County for 2011. He helped the local community get more than $18 million in financing this past year. “I really care about my clients and want the home-buying process to be as stress-free and efficient as possible,” he said.

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‘Social Search’ is finally here By Andreas Pouros, COO, Greenlight “…Google’s integration of Google+ into its search results is a major change, one Brands and Businesses must not ignore. And with Facebook having the potential to immediately capture a quarter of the search market globally were it to launch its own search engine, this move by Google has not come a minute too soon…” Google has revealed it will imminently be integrating Google+ into its search results, to deliver search results that better reflect user preferences and also incorporate content shared by people in their respective Google+ Circles. This, says Andreas Pouros, COO at leading specialist search and social marketing agency, Greenlight, is a major change to how Google’s search results are assembled and something brands and business with an online presence cannot afford to ignore. Moreover, with soon to be released research from Greenlight indicating Facebook could potentially capture 22 per cent of the global search market were it to launch its own search engine tomorrow, this move by Google has not come a minute too soon. “This is perhaps the biggest change to Google in the last five years and, as such, must not be overlooked by online players, says Pouros. “It is a huge opportunity for

them to increase their rankings in the search engine results pages (SERPS) and also extend their search presence into the realms of customer relationship management (CRM), public relations (PR) and more.” So, what will actually be changing? It is important to stress the fundamentals are not changing; they are just being supplemented by social elements. Natural search results will remain and will be determined in the same way as they are now (relevant content + links + engagement signals). Paid Search ads will still operate within the same model. That said, the changes are significant and breathe life into something we could call ‘Social Search’, something Greenlight has been expecting for a while and is incredibly excited about. The key changes in a nutshell: • Google+ content to be integrated into the SERPs – For businesses with a Google+ Brand page, any content posted will appear within the organic search results of the user that has the respective firm in their circles, assuming it is deemed relevant to the users’ search. This can be beneficial (Google+ content produced by the business gets wide exposure) or a threat (a negative review of the firm posted by someone with an extensive Circle membership will get

26 Kitsap Peninsula Business Journal • KPBJ.com February 2012

“It’s Always Nice To Do Business Locally.” “Northwest Commnet has been a business partner with Kitsap Credit Union for the last five years.

increased exposure). The opportunity here is that great viral content created by the business could then be shared by lots of people and therefore appear in the results for lots of people. • Relevant Google+ Brand pages to be showcased in the SERPs – Google will be suggesting relevant Google+ profiles to follow in the search results when searches are made. For instance, if you searched for ‘music’, Google would display options for you to add the Brand pages of ‘Britney Spears’, ‘Snoop Dog’, etc. to your circles. If you then did that, their content would appear regularly in your search results. This could be beneficial as this promotion of Google+ Brand pages to the populace will grow the number of people who add the respective brand to their Circles, giving brands a captive audience to market to and consolidate their presence in their future search results. There are a number of threats here too though – if brands do not have a Google+ page right now, they potentially leave themselves open to their branded search results being hijacked by people pretending to be their brand. In addition, the respective brand will not be amassing people who have added it to their Circles, whilst the brand’s competitors might be. This will obviously result in reduced visibility and mindshare over time. How to respond? Businesses and brands wanting to take advantage of these changes (or not fall victim to them) would need to undertake several activities: • Create a Google+ Brand page immediately – This would need to be carefully put together to ensure that it appears official, useful and worthy of people adding to their Circles. It should also be optimized to ensure it ranks for relevant brand search terms.

• Put a Google+ content strategy in place – Once a Google+ Company/Brand page has been constructed, there will need to be a content strategy designed to deliver high quality, engaging content, consistently to that audience (i.e. daily!). Content that not only begs to be shared, but also which uses search terms and themes the target audience might be searching for, therefore increasing and broadening rankings. For instance, if you are a company that sells computer games, you would want to have regular Google+ content showing the top 10 most purchased games (or anything else we know people are searching for in Google). If consumers have you in their Circles, they will see this content in their search results when they conduct relevant searches. It will also encourage others to add you to their Circles too. Content essentially needs to be used to increase the Company/Brand exposure to those consumers that already have them in their Circle and also compel others to add them for the first time because there is an incentive to do so. This should be aligned to the list of search terms the Brand/Company already targets in natural and paid search. • Benchmark your activity against the competition – As with most things, it is important to ensure close tabs are kept on how well competitors are doing – particularly in terms of the number of people that have added them to their Circles over time. (Editor’s note: Andreas Pouros is COO at Greenlight. He has been involved in search marketing for over twelve years, working for some of the biggest and most prestigious global blue chip companies. Andreas is responsible for an international team of Search consultants, developers, programmers, and copywriters. In his role, he provides guidance to well-known brands, including Santander, New Look, Sky as well as a number of government bodies.)

Megaupload founder’s homes raided, $5M in luxury cars seized

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Police in New Zealand have raided several homes and businesses linked to the founder of Megaupload.com, a giant file-sharing site shut down by U.S. authorities, and seized guns, millions of dollars, and nearly $5 million in luxury cars, officials said. Police arrested founder Kim Dotcom9 37. (previously known as Kim Schmitz and Kim Tim Jim Vestor).and three Megaupload employees on U.S. accusations they facilitated millions of illegal downloads of films, music and other content, costing copyright holders at least $500 million in lost revenue. Extradition proceedings against them could last a year or more. With 150 million registered users, about 50 million hits daily and endorsements from music superstars, Megaupload.com was among the world’s biggest file-sharing sites. According to a U.S. indictment, the site earned Dotcom $42 million in 2010 alone. Although the company is based in Hong Kong and Dotcom lives in New Zealand, some of the alleged pirated content was hosted on leased servers in Virginia, which gave U.S. prosecutors jurisdiction to act. A report by New Zealand news website stuff.co.nz said Detective Inspector Grant Wormald from the Organized and Financial Crime Agency NZ (OFCANZ) gave details of the extraordinary raid, which had been planned for several months. “Police arrived in two marked police helicopters,” said Wormald, according to the website. “Despite our staff clearly identifying themselves Mr. Dotcom retreated into the house and activated a number of electronic locking mechanisms. While police neutralized these locks he then further barricaded himself into a safe room within the house which officers had to cut their way into.” Once they gained entry into this room they found Dotcom near a firearm, which had the appearance of a sawed-off shotgun, Wormald added. Megaupload has retained Washington, D.C. power attorney Bob Bennett in the case, according to a person inside the company. Bennett is best known for representing former President Bill Clinton during the Monica Lewinsky scandal.


What you can — and can’t — ask in a job interview open on weekends and on religious holidays, and are concerned about employees wanting religious holidays off for observance. Instead of asking about their religion, provide the candidate with a copy of the work schedule and ask them if they will have any conflicts with it. You don’t need to know the details, you just need their agreement that they will be available. You cannot ask how old someone is, nor should you ask them for the dates of their high school graduation. You can ask if they are over the age of 18. When you are talking with a mature job applicant, do not ask them when they plan to retire, as you’re heading into age discrimination for sure. You are safe, however, if you ask all applicants about their long-term career plans. Sometimes, questions about families are used as ice breakers during interviews. This can be very dangerous, as it quickly gets companies into illegal territory. Comments about interesting last names (Tappero, that’s Italian, isn’t it? Are you from Italy?), about children (tell me about your family, do you have little ones?) and about marital status (what does your husband do for a living?) are all forbidden territory. Once you are in possession of information you shouldn’t have, it can become the basis for a claim of discrimination when the candidate doesn’t get the job. Any question that involves a candidate’s race, creed, religion or national origin is forbidden. Marital and parental status is primarily considered an issue of discrimination for women. In fact, we have a law that protects women who are pregnant. If you interview a job candidate who is obviously quite pregnant, you must find a way to not consider that fact in your hiring decision. Stick to questions about candidates’ availability for overtime, short notice, and attendance at their last jobs, if that’s a concern for you. Remember, asking all candidates the same questions on these subjects will help protect you from discrimination claims. Another forbidden area is anything related to health and disability. Oftentimes, employers want to know that a future employee will not be taking a lot of time off, so they inquire about the employee’s health. They start asking questions about health conditions, number of sick days they took at their last job, if they are considering

having more children in the near future, and whether they’ve ever had an on-the-job injury. All of those inquiries are illegal. You can ask if they are able to perform the essential functions of the job, with or without reasonable accommodations. And you can inquire into their reliability on their last job. If your employee will be working in a position where safety is a concern, you can probe their knowledge of, and attitude about, safety practices. There are some areas of inquiry that are forbidden, as they have been deemed to have a disparate impact on minorities. For instance, unless it’s a requirement of the job, you cannot ask if someone has a car. You can ask if they have reliable transportation, which could be the bus, a bike, or a relative who will drive them. You cannot ask if someone has ever been arrested, and you shouldn’t conduct blanket inquiries into any and all convictions of all types over the course of someone’s life. You can inquire about convictions of certain types, but only when they specifically relate to a job’s duties, and when they have taken place within a reasonably recent period of time. Inquiries about a candidate’s finances are also taboo, unless they specifically relate to the job’s responsibilities. Washington State has passed a law in this regard, and legislation is pending on the federal level, which is likely to pass as well. The best approach for coming up with good, safe interview questions is to start with a detailed job description, which specifies the essential functions of the job, knowledge, skills and abilities, quality and quantity standards needed to meet the job requirements, the education and work experience required, as well as the physical factors, working conditions, and time that will be spent performing tasks. Specific questions can then be generated to assure that each candidate meets the requirements. We might like to blame all of these lawyers, legislators, and the litigious world for the complexities of the interview process. But when we choose to ignore the rules of the game, the words of Theodore Roosevelt come to mind, “If you could kick the person in the pants responsible for most of your trouble, you wouldn’t sit for a month.”

(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.)

Kitsap Excell CEO Group holds first workshop The brand-new CEO peer-to-peer group in Kitsap County held its first workshop on Jan. 12 at the Clearwater Casino Hotel and Resort. Excell Puget Sound is based out of Seattle and Dan Weedin has several executive groups in the Puget Sound region. Regional Director Dave Shapiro has teamed with local consultant and executive coach, Dan Weedin to facilitate and lead this group. The group already has four local business leaders committed to founding this new group – Mike Hall from Hall & Company (Poulsbo); Tony George from Kitsap Bank (Port Orchard); Dan Ryan from Tim Ryan Construction (Poulsbo); and Diana Smeland from Port Ludlow & Associates (Port Ludlow). The group is designed to include between 6 to 12 CEOs and presidents of businesses in Kitsap County. The next workshop will take place on Feb. 9 at the Hawk’s Nest boardroom at the Clearwater Casino Hotel in Suquamish. The time will be from 8 a.m. to 4 p.m. and includes a continental breakfast and lunch. The group will meet monthly on the second Thursday of each month at various member locations. For more information, and to register as a guest for the February event, contact Weedin at (360) 271-1592 or dan@danweedin.com. Visit the website at www.ExcellPugetSound.com.

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By Julie Tappero, President West Sound Workforce Shortly after moving here in the late 1980s I interviewed for a job with a small business. The owner’s wife had several questions for me. Was I married? Did I have small children that might need my attention during the workday? Did I plan to have more children? Did I have any health issues that might cause me to miss work? When I got home I told my spouse there was no way I’d work for someone who asked so many illegal questions! However, I actually ended up taking the job and helping the business create policies and procedures to keep them from crossing over into this illegal territory in the future. Today my business works with many employers throughout the West Sound and we’ve learned that it’s not uncommon for small businesses to have questions about what they can and cannot ask prospective employees in a job interview. How do they get the information that they need to know they are making an informed decision without opening themselves up to a claim of discrimination? While you may think you are innocently trying to get to know your job candidate to see if the person is qualified for the position and a good fit for your company’s culture, you can quite easily drift into areas that will open you and your business up for a charge of discrimination. Preparing your questions in advance of the interview will help you pose the questions safely and get the information you need to make your decision. Prior to the interview, spend time considering the qualifications and attributes that are important for the position and the company. Then frame the questions in a way that will access the information without crossing the line. Be sure you ask each candidate the same questions in the same way. Don’t tailor your questions by gender, race, religion, etc. Unless it is a bona fide occupational qualification, you cannot ask questions regarding race, religion, creed, color or national origin. However, you could ask what languages they speak or write fluently, if that is relevant to the job. You may ask if they are legally able to work in the United States, and if they have ever worked here under another name. Some businesses are


Don’t play politics with your investment decisions By Jason Skifstad While the election season heats up, you will hear more and more promises, claims and counter-claims from the candidates. As a citizen, you may or may not enjoy this “political theater,” but as an investor, you might be concerned over all the talk about taxes, Social Security, Medicare and other financial topics. Will you need to adjust your savings and investment strategies? If so, how? Before you think about adjusting your investment strategy in anticipation of any actions coming from Washington, keep a couple of facts in mind. First, few campaign promises become reality. And second, due to our system of government, radical shifts in direction are difficult to implement – which is why so few of them occur. Still, we may see some smaller-scale – yet not insignificant – changes in the near future. In light of this possibility, what investment decisions should you make? Here are a few suggestions:

28 Kitsap Peninsula Business Journal • KPBJ.com February 2012

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Consider owning investments that are taxed in different ways. No one can predict what will happen with income tax rates or the tax rates that are applied to capital gains and dividends. Consequently, it may be a good idea to seek “tax diversification” by owning investments that are taxed in different ways. For example, when you sell appreciated stocks, you pay capital gains taxes, whereas interest payments from bonds will be taxed at your individual tax rate. And it’s always a good idea to take advantage of taxadvantaged vehicles, such as an IRA and your 401(k) or other employersponsored retirement plan. Stick with quality. It’s a good idea, when owning stocks, to invest in quality companies with diversified businesses. These companies are usually less dependent on a particular government program, and they typically have a global reach, so they may be better able to handle any changes implemented in Washington. Stay focused on your long-term goals. Politicians come and go, and our political parties seem to take turns holding the reins of power. Yet your long-term goals – such as college for

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your children, a comfortable retirement and the ability to leave a legacy to your family – don’t really change. By realizing that you are largely responsible for achieving your goals, and by following an investment strategy that’s suitable for your individual risk tolerance and time horizon, you can make gradual, but still meaningful, progress toward those goals – no matter what’s happening in Washington. Review your strategy regularly. With the possible approach of changes in tax policies and in government programs that can affect your retirement security, you’ll want to

review your investment strategy regularly to make sure it’s still on track toward helping you meet your objectives. As part of this review, you may want to seek out more “tax-smart” investment opportunities, while always looking for ways to supply the asset growth you’ll need to enjoy the retirement lifestyle you’ve envisioned. Aside from voting for the candidates who best represent your interests, you may not have much influence over what goes on in Washington. But by “electing” the right moves to help meet your goals, you can have plenty of control over your investment strategy.

Mutual of Omaha Bank adds account executive for Washington, Oregon, Alaska Mutual of Omaha Bank has named Kris Gjylameti assistant vice president and regional account executive for the Pacific Northwest region of its Community Association Banking operation. Based in Seattle, Gjylameti will provide specialized banking services to property management companies, homeowner associations and homeowners in Washington, Oregon and Alaska.

Gjylameti joined the bank’s Community Association Banking team in 2006 as a regional account executive for Washington and Oregon and was promoted to assistant vice president for the Hawaii market in 2008, where has served the past three years. He is actively involved in the HOA industry as a member of the Community Association Institute (CAI) and Oregon Washington Community Association Managers (OWCAM).

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Use credit strategically as the recovery gains strength By Tim McLaughlin KeyBank N.A. The significant tightening of business credit brought by the recession has begun to lift. One recent, independent analysis of FDIC data reported five straight quarters of increasing overall commercial and industrial lending by banks. As the credit squeeze eases with improving economic conditions, lenders remain cautious in their underwriting, even as interest rates remain at near-record lows. Consequently Kitsap area companies seeking to ride the recovery, as uncertain and erratic as it may admittedly seem at times in the short term, must be strategic in their use of credit. External Financing Managing your company effectively and growing strategically as you shift from defense to offense may depend on the quality of credit you can access more than on any other single factor. This often comes down to a question of how you manage your creditworthiness before reaching out to potential lenders to finance an expansion of facilities, capabilities, intellectual property, equipment, inventory, or staff. Once you have actualized an expansion plan to achieve any of these growth measures, take a practical and honest inventory of internal resources needed to take on the additional debt you seek. Review your staff resources to administer and pay back a lender, including the expertise to fulfill covenants consistently and reliably. Realistically assess the cash flow your company has

available to serve both existing debt and the new debt you seek. Very importantly, analyze your leverage ratio, before and after borrowing, as preparation for possible additional borrowing should contingencies or unexpected opportunities arise. This last consideration deserves underscoring, and some perspective. When business credit tightened initially, many companies found they were overleveraged and had no financial cushion to ride out deteriorating conditions. When sales and cash flow faltered, their debt service became unsustainable. So ensure that your company has sufficient, and sufficiently liquid, reserves to bridge temporary shortfalls. Also, before borrowing, plan out your exit strategy, which means more than just the simple suggestion to borrow only what your company can pay back. Be clear about how your company will pay back the new debt, taking into account possibilities such as appreciation in your collateral value or in cash flow, or the possible availability of a strategic take-out loan at better terms than currently apply. If your company has multiple credit facilities in place, be thoughtful about allocating resources to pay them down. Paying early may deprive your company of needed strategic reserves. Next, strategically match new credit to new needs. Review the initial purposes for which you obtained term loans or lines of credit and reassess how suitable your existing credit exposure remains in light of current needs and plans. Then choose the form of credit that best fits current

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companies can crosssell one another’s products, enhancing the attractiveness of both to new customers. Explore nondebt and non-equity financing. You can use accounts receivable funding/factoring, equipment leasing or purchase-order funding to raise capital; retailers can obtain cash advances against future credit card purchases. Expand products or services. Choose expansions that make strategic sense with your company’s existing offerings. Buy efficiency. Concentrate on your core business and outsource non−incomeproducing activities from your back office. The best advice I can offer, given the uncertain times we live in, is to rely heavily on trusted financial and business advisors who can supply the expertise your company may lack, providing guidance on expansion opportunities as the economy recovers, and how to finance it. (Editor’s note: Tim McLaughlin is senior vice president and Business Banking team leader for KeyBank’s South Puget Sound District. He can be reached at (253) 3057397 or Tim_McLaughlin@KeyBank.com.) This document is designed to provide general information only and is not legal advice. If legal advice or other expert assistance is required, the services of a competent professional should be sought. KeyBank does not make any warranties regarding the results obtained from the use of this information.

February 2012 Kitsap Peninsula Business Journal • KPBJ.com 29

Gary Lucy / CPA, CFP • Alison Fong • Brian Cox • Don Cox / CPA

conditions, your exposure and your business objectives. Work with an experienced business banker to engineer the most appropriate financing for your company’s current cash position and future plans; and to determine whether debt or equity is most advisable, given your ownership structure, management and business type. Internal Financing Your company may have internal financial resources available for powering growth. Identifying and using those resources can extend the effectiveness of such external financing as debt. Specifically, consider the following approaches: Use profits strategically. Allocate them to those product lines, services and investments that bring the greatest return. This may sound overly conservative, and to some it may seem to preclude taking prudent risks in new product development and other initiatives. But these are times when careful resource allocation pays off. Enhance cash flow. Accelerate income by tightening your payment policy with customers, demanding deposits or cash up front, or offering discounts for prompt payments. Consider raising prices or increasing fees ⎯ but carefully, to preserve customer loyalty. Decelerate outgoing payments through negotiations or requesting discounts for paying promptly. Calculate and balance the value of the float against the need to preserve the good will of your suppliers and vendors. Craft strategic alliances.Similar companies can form marketing alliances to highlight the value of their products and services, and


Amy’s Decadent Chocolates grows, expands space Amy’s Decade Chocolates in Bremerton nearly doubled its space last summer, taking over the vacant space next door. The expanded space hosts the production facility for caramel and fudge (complete with a new stove), a mailing station and storage. “We couldn’t keep up with production with the stove we had. The stove couldn’t cook fast enough for us,” said owner Amy Jablonski. With the new stove, cooking time was cut to one and a half hours for caramel instead of four hours previously. And since the moisture from making the fudge no longer impacts the main shop, the chocolatiers can now concurrently make chocolate. “It’s a win-win for everybody,” Jablonski said.

Customers can watch the fudge or caramel making through a window, though there is no set schedule. Jablonski said that during peak times such as Christmas or during summer events, someone is in there cooking nearly eight hours a day. The expansion has allowed for the addition of an extra candy case and new products, which include a line with Poulsbo’s Crimson Cove Smoked Specialties. Jablonski said undertaking a remodel in 2011 was a bit “scary” since it was predicted to be a slow year. “I had a little faith that it was going to get better,” she said. “I was at a point where without (expanding), I couldn’t take a step forward.”

Retailers find more places to put QR codes Consumers shopping in some New England stores this past holiday season may have spotted Quick Response codes in some unusual places. Research from mobile marketing and technology firm Nellymoser Inc. found that of more than 700 stores canvassed in the Boston area, 23 contained at least one QR code, a type of two-dimensional bar code. Retailers use 2-D bar codes to enable consumers to view mobile web-based content with their smartphones. Consumers click to open a free scanning

app, point the phone at the code, and the web content appears on the phone’s screen. Within this group of 23, seven retailers placed the codes on their storefront windows. “The front window not only reaches today’s shoppers, but also people who are walking past the store and could become shoppers after looking at the retailer’s offerings,” says Roger Matus, Nellymoser executive vice president. Five retailers placed the codes on product displays. Four put the codes inside fitting

rooms, with three each placing the codes at their store entrances and at cash registers. Nellymoser suggests the fitting room location enables retailers to take advantage of the relatively distraction-free space to promote the QR codes. Some retailers, such as American Eagle Outfitters Inc., No. 102 in the Internet Retailer Mobile Commerce Top 300, and Express Inc., No. 61, used QR codes to prompt consumers to download the merchants’ iPhone or Android apps.

Other retailers, such as Pottery Barn Teen, a unit of Williams-Sonoma Inc., No. 25 in the Internet Retailer Top 500 Guide, offered discounts and special offers for scanning a QR code. “We expected that QR codes would be near merchandise to explain more about each product,” Matus says. “Instead, we found that QR codes were often used as a way to build a relationship beyond the bricks-and-mortar location with app downloads and social media sharing.”

30 Kitsap Peninsula Business Journal • KPBJ.com February 2012

Does a Facebook “like” mean customers really like you? While Facebook users expect exclusive content, discounts, promotions and updates from the companies they “like” on the site, marketers see the action of “liking” in a slightly different way. The “Variance in the Social Brand Experience” study from the CMO Council and social CRM firm Lithium asked both marketers and consumers what it meant when a customer “likes” or engages online with a brand. Fifty-seven percent of marketers thought a “like” meant the content on the site was agreeable, and 41 percent thought it meant customers wanted to be heard. Only 33 percent of marketers said they thought customers were looking for incentives or rewards for their “like.” Interestingly, only 24 percent of marketers thought that when a consumer “likes” a company that it means they are also a loyal customer. Yet among Facebook-using consumers, 49 percent sa id they “like” a brand on the site because they are already loyal customers. Since not all Facebook fans are loyal customers, this gives marketers an opportunity to leverage the social network to encourage purchases and loyalty among their fans. In addition to building loyalty among customers, Facebook and other social media outreach has influenced marketing operations, respondents said. Of those mark eters surveyed, 55 percent said social media improved customer listening, engagement and conversations, and another 55 percent said it opened new avenues to FACEBOOK, page 31

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Kitsap Sports stays competitive by catering to local niche By Rodika Tollefson Sixty-five years after opening its doors in Bremerton, Kitsap Sports has remained a local mainstay. Located in Silverdale since 1988, the retail store has stayed in the same family. Current owner David Degarimore is the grandson of founder, Ora, and took over the company from his parents about a decade ago. Mike Nyland, company vice president and longtime employee, said the business has remained competitive by listening to its customers and being flexible. While Kitsap Sports (www.kitsapsports.com) doesn’t try to compete with low prices offered by many chain stores, instead it can quickly adapt to customers’ needs. “Our focus is on high-end items for someone looking for that, but we realized we also needed other price levels because people are on a budget,” Nyland said. “…We have to offer something that is valuable, whether

that’s a good service or product, and we have something to offer that’s not entirely price-driven.” As one example, a customer coming in for shoes isn’t simply going to choose a pair after trying it on. Staff are trained to recommend shoes based on the person’s biomechanics such as gait. Employees continuously go through training in-house and online, Nyland said. Kitsap Sports moved to its current location off Myhre Place about eight years

ago, expanding from 12,500 square feet to 33,000. In addition to a major focus on team sports — both for youth and adults — the store caters to recreational activities that are popular locally, from skiing and

Scent makers sweeten the smell of commerce

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from page 30 gather and further market insights. Additionally, 47 percent reported that social media increased the complexity of marketing planning and mix allocation. As marketers and customers connect more on social media, both sides will continue to learn from the experience. Marketers will have a better idea of what fans expect and want from companies on social media. Likewise, consumers will help marketers by providing feedback, testing products and possibly purchasing more items going forward.

said Jennifer Dublino, chief operating officer for the 5-year-old Scent Marketing Institute. Simon Faure-Field, chief executive of the Equal Strategy consulting firm, has been nicknamed “the smell guy” for his efforts to incorporate scent to build brands. For a New Balance shoe store in Beijing, he introduced Chinese shoppers to the 105year-old U.S. brand by creating “a total sensory experience” designed to convey heritage and craftsmanship. He used a nostalgic wood and leather scent, decorated the wooden-floored store with vintage ads and compiled a soundtrack of 1950s bebop music. Shoppers spent twice as much money as in similarly sized stores elsewhere, partly because the atmosphere induced them to linger, he said. “The longer a customer stays in a store, the more (they) spend,” FaureField said. Success stories from other companies have inspired others to jump on the bandwagon, Dublino said. Casinos were early adapters, experimenting with scent as they fought to neutralize cigarette and cigar smoke that chased gamers away. Theme parks use artificial scents to help create the illusion that guests are in ancient castles or primeval forests. Upscale stores scent their baby goods department with the soothing smell of baby powder. Cruise lines and hotels use signature aromas in their rooms and on the brochures mailed to guests after they go home, in hopes the scent will bring back memories of a pleasant vacation and spur repeat bookings. Even nonprofit Goodwill Industries has gotten in on the act, using a custom-made orange and honeysuckle scent created by Prolitec Inc. to sweeten the shopping at its thrift stores in Wisconsin and Illinois. Scentmakers point out that many naturally occurring substances can be irritating, as any ragweed sufferer can attest. They argue that very few people, generally about 2 percent, suffer allergic reactions to manufactured fragrances, and that the

industry has worked hard to stop the use of ingredients that can irritate skin or airways. Complaints are more often based on simple dislike of a fragrance or overuse of scent in a small space, they said. “One man’s pleasure is another’s pollution,” said Ladd Smith, president of the Research Institute for Fragrance Materials, which analyzes fragrances to determine their safety. “Involuntary exposure drives us crazy.”

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Silverdale #CBA475911 Office for lease. Fully built out offices with restroom, kitchen and easy freeway access. Competitive rents and very close to hospital annex. Joe Michelsen 360-692-6102/360-509-4009. Kingston #293573 $249,500 This warehouse is minutes from Kingston Ferry, on Hwy 104. It is plumbed for air-compressor and has 3-phase power. Bob Guardino 360-692-6102/360-710-7844. Kingston #306623 $270,000 Newer 3,360 sq.ft. building with plush office and kitchen, large loft area, and two bathrooms. Building is insulated and has four, 12’ bay doors. The office, bathrooms and kitchen are very well appointed and presentable to customers. Bob Guardino 360-692-6102/360-710-7844. Central Kitsap #302807 $399,000 Live & work in a great high visibility commercial location! Charming 3 bdrm, 2 bth home; 1998 fully heated 2,100 sq.ft. shop w/two 10’X10’ bay doors+ one 10’X14’ RV bay door with 16’ ceiling on 1.15 acres. Mark Danielsen 360-692-6102/360-509-1299.

February 2012 Kitsap Peninsula Business Journal • KPBJ.com 31

The aroma of baking bread wafts through the supermarket, even when the ovens are empty. The breezy scent of coconut oil floats through the bathing suit aisle of the department store when summer is months away. Welcome to the world of scent marketing. Retailers are increasingly using ambient scents to induce shoppers to stay longer, spend more and maybe even behave a little more kindly toward fellow shoppers. Retailers are wary of discussing it lest they be accused of manipulation. But the fragrance makers, researchers and advertising agents gathered in Miami Beach for the ScentWorld conference in December were happy to explain their art. “Control is one of the most important parts,” said Scentevents founder Neal Harris. “Too much could be way too much.” His company uses fragrance-infused ceramic beads and diffusers to fan the scent through a room. For larger spaces, the scent goes into the air conditioner or ventilating system. It’s a dry system so it doesn’t linger too long. Scent marketing is expanding because the technology has become more sophisticated and more affordable, enabling a small retailer to scent the environment for less than $100 a month,

snowboarding to camping to climbing. One of the more recent additions was a bicycling section, which is very popular in the summer. For team sports, customers will find gear for just about everything: soccer, tennis, wrestling, softball, even lacrosse — the list goes on. Nyland said having employees who are not only involved in the various sports but also live and are active in the community is a big advantage. “And if we see local trend, we can act on it right away,” he said. The business currently has 15 employees, down from the 25 it had during its peak times. Nyland said part of being successful is the ability to adapt to the ebbs and flows of the many variables that come with a retail environment. Even things like lack of snow or change in regulations impact the bottom line because it could mean absorbing obsolete inventory. “We are grateful to still be here and have jobs,” he said. “…We’ve been through a lot.” One trend he’s noticed in his 20-some years with the business is the declining number of recreational athletes. Youth who used to play several sports, often through weekend leagues, are becoming more specialized and playing fewer sports, but playing them year-round. But no matter their level or interest, helping those players get geared up is one of the fun aspects of the job, he said. “What we sell is fun stuff,” he said. “It’s r eally fun to watch a 5-year-old get excited about getting ready to play soccer.”


32 Kitsap Peninsula Business Journal • KPBJ.com February 2012

Lessons in mentoring from 1,000 business start-ups. By Bill Hoke During the past ten years, I’ve been lucky enough to help mentor and launch nearly 1,000 new business start-ups, in my private consulting practice, and through my involvement with the Washington Community Alliance for Self Help (CASH) program. Nearly one thousand times someone has looked up from a nascent business plan, or with a look of steely determination and said. “I want to start my own business”. Those seven words always get my attention. One of the many lessons from Washington CASH is that every single one of these entrepreneurs needs a mentor. If you have a mentor, or been one, you’ve probably see the power of listening in this process, how important it is to really listen and then decide how to respond. For me, encouraging these start-ups is important but their self-discovery is always more useful than what I might ‘’tell’ them. Washington CASH is a peer-based model. Students in the Business Development Training classes work together in class and they learn from each other. It’s always amazing to see how much business acumen there is in a group of six entrepreneurs. While the temptation might be to jump in with the answers, the mentor in me says to be quiet and let the group process the information and decide; they seldom get it wrong. One of the great blessings from the Washington CASH program in Kitsap is that we have a full complement of business coaches for our business training classes, and we have a corps of mentors who work with our business support groups. The people volunteering for these positions are very (very) reluctant to relinquish them to someone else. Like most mentoring situations, the mentor is going to assert they get as much out of the process as those they are working with. When I put on my mentor hat when I work with people starting a business, I tell them I see my role as one who challenges assumptions. I’m the one who looks at sales projections in a business plan and asks, kindly, “How do you know that, what are these numbers based on, who says you can sell X units or hours per month?” So If I have learned anything about mentoring, it’s to listen carefully, try to get people into a self-analyzing mode and always, always, be kind and respectful. I helped kill a lot of bad business ideas with a warm smile and kind heart and I can mentor without pandering to bad ideas or weak egos. The feedback over these past ten years has often been to thank me for believing in them and, close behind, a thanks for being honest and straight with their ideas and progress. I was lucky enough to have a father who was an innately good mentor; he asked hard questions, demanded facts, keep the personal and father-son out if it and I almost als left his study following a session feeling like I had solved my own problem. I was also lucky enough to have some wonderful business examples (Les Smith, at the top of my list) and one of the first clients in my consulting business, the late Bill McKinley, turned out to be ‘my’ mentor. At his memorial service I was not surprised to meet dozen of others who claimed Bill as their own and they told wonderful, heartwarming stories about how Bill mentored them. One example: years ago I was charged with new business development for our advertising agency and I made a dinner appointment with Bill (I can take you to the table today, 25 years later) when Bill looked up from the new business brochure I was telling him would save our agency when he noted, dryly, “Brochures don’t make sales, Bill, people do.” That was a rare instance when Bill actually gave advice. Like most good mentors, he would typically lead me to thinking it was my conclusion. This time he sensed it was time to bring me back to reality. I’ve done few brochures since then. You may be mentoring someone and not be aware of it, by the example you set, by the way you handle yourself in business situations, by how you share your experience and... by how you listen. Every business owner can benefit by a mentor and this is particularly true for those without prior business experience who want to start their own business. And, finally, when you look back at your career, measure your accomplishments, the greatest rewards may come from hearing someone say, “You changed the course of my business. Thank you for being my mentor.” You never know who’s life you will change mentoring. (Editor’s Note: Bill Hoke is an ex advertising agency creative director on bands such as AT&T, Holland America and Boeing. He lives in Kitsap and is active in the Washington CASH microenterprise program. Reach him at hoke@hokeconsulting.com.)

Local company receives commission from SAM

Public comment sought on CDBG application by Feb.15

el dot Furniture and Accessories of Poulsbo has received a commission from the Seattle Art Museum (SAM) Shop to design and build a sustainable, bambooframed mirror, according to Lishu Rodriquez, co-owner. The mirror along with its Future Primitive Collection, a contemporary handcrafted line of bamboo and rosewood furniture, will be available during the Gauguin Show at SAM February through April. el dot has also announced a new, local line of wood reflective Animal Guides for use as driveway markers and garden art along with a line of BareFoot Shoe and Boot Removers. The company offers unique lines of global and local home furnishing products with a focus on craftsmanship and sustainable materials like bamboo to create non-toxic furnishings that are beneficial to its customers, craftsmen that make them as well as the environment. Products are sold through its Poulsbo showroom and retail stores in Seattle and Los Angeles. The company is dedicated to cultivating a positive approach toward our environment and its inhabitants, Rodriquez said. Founded in 2003 by Lishu and Leonardo Rodriguez, both environmental artists and designers, the couple’s inspirations vary from the ingenuity and wisdom of indigenous cultures to technology and the potential of global commerce. “Our focus is on the mindful design of handcrafted furniture and accessories made from renewable and chemical free materials. We guarantee sustainable production of our collections, ensuring responsible use of renewable resources and preservation of craft traditions. We are certified as a “Beneficial” or “B” company, for using the power of business to solve our social and environmental problems. We are part of a global community of bamboo enthusiasts, collaborating for social, environmental, and economic well-being,” Rodriquez said. Rodriquez is a graduate of the Washington Community Alliance for Self Help (CASH) business development program in Kitsap). The company’s showroom is located at 1700 State Hwy. 305 NE in Poulsbo, and can be reached at (360) 697-3431, info@eldotdesigns.com or by visiting www.eldotdesigns.com.

Public comment is being sought on a federal grant application sponsored by Mason County to the State of Washington Department of Commerce through U.S. Dept. of Housing & Urban Development Community Development Block Grant (CDBG) program. The proposal is for a project on behalf of Faith in Action West Sound for a Center for Seniors Facility in the town of Belfair in the amount of $1 million. Under the guidelines of this grant, Mason County is the only eligible applicant. A public hearing for the Mason County Board of Commissioners to approve the grant application is set for Tuesday, February 7, 2012 at 9:30 a.m. If approved, a resolution will be signed authorizing Mason County’s Department of Community Development Manager, Barbara Adkins, to submit the application on behalf of Faith in Action West Sound’s project. For more information regarding the hearing, please contact Adkins, (360) 427-9670 Ext. 286 or Barbara@co.mason.wa.us. If citizens require special accommodations to attend please contact the Commissioners’ office at 360-427-9670 ext. 419. Interested persons can email their comments to Kathleen Byrne-Barrantes, Grants Consultant at grantsolutions@comcast.net and Barbara@co.mason.wa.us, or mail/drop off at 411 North 5th Street, Shelton, WA 98584 by Feb. 15, 2012. Once the public comment period ends, the grant development team will review all comments received and incorporate suggested changes into the grant proposal as appropriate or provide response to affected parties and the application will be submitted on Feb. 29, 2012. Commerce is expected to announce the grant awardees in May 2012.

Parker voted in as acting president of KARE Jason Parker was recently elected as acting President of Kitsap Alliance of Resources for Elders (KARE). “Richard Tizzano has done a great job the past two years leading us. He has set the groundwork, and I’m excited to get the chance to build on it,” said Parker, president of Parker Financial LLC. “Our goal is to continue reaching out to the community and making resources available to them. I’ve already started contacting possible speakers for our annual conference.” Tizzano, elder law attorney, has served the past two consecutive years as president. Kitsap Alliance of Resources for Elders is a team of independent professionals who have come together to better serve the needs of older adults in our community. Members of KARE have been chosen for their expertise within their respective fields as well as for a demonstrated record of compassion and caring in dealing with seniors. We are dedicated to informing, supporting and empowering older adults through our business and volunteer activities.

S.K. Rotary announces Mardi Gras event The Rotary Club of South Kitsap has announced a Mardi Gras themed Casino Night to be called the “Bay Street Bash.” The event is set for Saturday Feb. 18 at the Port Orchard Pavilion, located at 701 Bay Street. The event, benefiting the South Kitsap Rotary Foundation, begins at 6 p.m. “The Rotary Club of South Kitsap is actively involved in local projects and causes; such as park construction, Helpline and other non-profits, as well as exchange programs and scholarships for area students”, said Kyle Morkert, president. “However, our foundation also participates in international projects such as feeding programs, disaster relief, and a more recent mission, helping Kenyan villages with clean water and sanitation.” The event is open to the general public. Tickets are $40 per person, which includes admission, casino match play, and a light dinner featuring Cajun style cuisine. There will be numerous raffles and other Mardi Gras themed activities, plus a full no host bar. For tickets contact Nate Potter at (360) 340-3283; for sponsorship opportunities contact Gray Joyner at (360) 443-6067.


New Guidance and Planned Center for seniors in Belfair using Low Impact Development

wwstormwatermanual/2012draft/2012draftS WMMWW.html If you would also like to comment on the Department of Ecology’s draft LID requirements in the draft Municipal Stormwater NPDES general permit, please see: www.ecy.wa.gov/programs/wq/stormwater/ municipal/2012Reissuance.html. Large impervious surfaces in urban areas increase the quantity and peak flows of runoff, which in turn cause hydrologic impacts and loss of habitat. Furthermore, because of the enormous volume of runoff discharges, mass loads of pollutants in stormwater can be significant, causing water quality problems such as fish disease and mortality, swimming beach and shellfish bed closures, and well contamination. Recent efforts to design and build a ‘Center for Seniors’ facility in Mason County’s town of Belfair using LID standards and LEED approved building designs has gotten traction in recent months. The new center will serve as a place for educational, recreational and social activities for seniors, as well as provide space for community groups. According to FIAWS’s adhoc construction committee, that includes the engineering firm ESA, Inc. president Pat McCullough, Belfairbased developer Rick Krueger, and FIAWS President Judy Mastick, LID stormwater management features will be employed throughout the grounds and parking lots. The project, currently in the final design phases by architect Anthony Krueger, will use low maintenance and energy efficient construction and, when completed, be an environmentally responsible building utilizing energy efficient products and services. Some of the architectural plans include wheel-chair friendly p-patch gardens and a ‘secret garden’ meditation space with native plants. A place where visitors can commune with nature... and one that is inviting to the many birds and wildlife that may take refuge there. “I am extremely excited that we can build this multi-use center with the future in mind using environmentally friendly LID and LEED building certification that is respectful of our sensitive location near the Hood Canal environment,” said FIA Executive Director Patti Kleist The need for this facility and its support services is strong as U.S. Census Bureau data indicates. In 1990, 31 million Americans were

over the age of 65. Bureau analysts predict that number to surpass 78 million by the year 2030 as one in every five Americans will be a senior citizen. Estimates suggest that by 2050, over one-fifth of our nation’s population will be age 65 or older. The war has left many veterans also disabled and needing the support services the center will provide. In the last legislative session, the project supported by the nonprofit Faith in Action West Sound (FIAWS), received a $1.36 million matching grant from the state — about 60 percent of the projected $2.5 million cost. Public comment is currently being sought on a federal grant application spons ored by Mason County to the State of Washington Department of Commerce Community Development Block Grant (CDBG) program on behalf of FIAWS in the amount of $1 million. Under the grant guidelines, Mason

County is the only eligible applicant and would receive the funds using a portion for its costs to manage and administer the grant; however it would only act as a conduit for the funds requested by FIAWS for the center for senior’s project. A public hearing for the Mason County Board of Commissioners to approve the grant application is set for Tuesday, Feb. 7, 2012 at 9:30 a.m. If approved, a resolution will be signed authorizing Mason County’s Department of Community Development Manager, Barbara Adkins, to submit the application on behalf of Faith in Action West Sound’s project. Interested persons can email their comments to grantsolutions@comcast.net and Barbara@co.mason.wa.us, or mail/drop off to the attention of Barbara A. Adkins, Department Manager, at 411 NORTH 5th STREET, SHELTON, WA 98584 by February 15, 2012. Once the public comment period ends on Feb. 15, the grant development team will review all comments received and incorporate suggested changes into the grant proposal as appropriate. While the center will serve mostly North Mason clients, it will also accommodate residents in South Kitsap and Key Peninsula in Pierce County. As the efforts for the second half of the funding kick into high gear, Kleist said the focus will be to create a vibrant place in the community and diverse demographics.

February 2012 Kitsap Peninsula Business Journal • KPBJ.com 33

By Kathleen Byrne-Barrantes WSU Extension and the Puget Sound Partnership announced that the Draft 2012 Low Impact Development Technical Guidance Manual for Puget Sound (Draft LID Manual) is available for broader stakeholder review until 5 p.m. on Thursday, Feb. 9, 2012. The Draft LID Manual is an update to the existing 2005 LID Technical Guidance Manual for Puget Sound, and incorporates current national and regional information and results of recent research regarding LID practices. Examples of LID projects include permeable pavement, rain gardens, vegetated roofs, reverse-slope sidewalks and rainwater-harvest projects. LID-designed sites have fewer impervious surfaces and use vegetation, healthy soils, small-scale storage, and dispersion and infiltration techniques to manage stormwater close to where it originates. The result is less polluted runoff that needs to be managed in centralized stormwater facilities and, in some cases, eliminating the need for these altogether. LID strategies both distribute storm water runoff and collect rainwater through utilization/harvest, recycling, smallscale treatment techniques, managing flow and filtration equivalent to predevelopment conditions. The manual, text and graphics is available at: www.psp.wa.gov/LID_manual.php. This web site also contains information about the process, timeline, and participants involved in developing the 2012 version of the Draft LID Manual. Only comments received via the webbased tool listed on the above web site will be accepted (not those submitted via hard copy, e-mail or phone calls) and can be submitted by clicking and following instructions. The review period will end at 5 p.m. on Thursday, Feb. 9, 2012. Any questions regarding the review process should be directed to Bruce Wulkan at the Puget Sound Partnership: Bruce.Wulkan@psp.wa.gov, or 360-3394626. The Partnership will post a document of comments received on the above listed website in March 2012. Ecology encourages the removal of barriers to the use of Low Impact Development (LID) techniques and flow credits for various LID techniques, depending on the project, result in significant reductions or even elimination of the need for more traditional flow control BMPs. The Draft LID Manual is being updated in coordination with the Department of Ecology’s development of the 2012 Stormwater Management Manual for Western Washington. The public comment period for that update process ends on February 3, 2012. If you have questions or would like to comment on it, please contact Carrie Graul at the Department of Ecology at (360) 407-7221, or carrie.graul@ecy.wa.gov or their website at: www.ecy.wa.gov/programs/wq/stormwater/


2012 Kia Optima Hybrid: A sporty triple threat By Bruce Caldwell The 2012 Kia Optima is an excellent car and an outstanding value that’s available in three four-cylinder iterations. The Optima is by design very versatile and the three distinct engines help broaden its appeal. There’s a powerplant for every driving style and budget. The Optima was redesigned for 2011. The base 2.4-liter inline four-cylinder engine was first augmented by the lively 2.0-liter 274 horsepower I-4, which was followed by the introduction of the 2.4-liter gas/electric hybrid engine. We tested both the turbocharged and hybrid Optimas — two unique variations on a common theme. Value is a key component of the Optima equation and both versions are very competitively priced. Both cars base right around $26,000. Some of our favorite features were optional (panoramic sunroof, heated/cooled front seats, Infinity sound system, and heated rear seats), but even with options list prices barely break the 30K threshold. Walkaround: The Kia Optima features bold, contemporary styling with an Asian flair, especially in how the grille and headlamps sweep upward. The spoilers and other fascia components are aggressive. They contribute to an overall look that is

much more performance sedan than econocar. High tech style alloy wheels gave both the turbo and hybrid Optimas significant street cred and fashion points. The SX Turbo Optima came standard with handsome 18-inch wheels, while the hybrid was shod with 17-inch alloys (instead of the standard 16-inchers) as part of the Premium Technology Package. Interior: Technological prowess is a huge part of why Kias have become such a powerful market force, but on a day-to-day basis people are more apt to be impressed by a nice interior. The Kia Optima gets very high marks in all things interior. A

2012 KIA OPTIMA 34 Kitsap Peninsula Business Journal • KPBJ.com February 2012

NOT YOUR AVERAGE MIDSIZE SEDAN

commonly expressed remark was one of surprise that so much quality and content came at such an affordable price. Optima interior designers paid great attention to details such as materials, colors, fit, and ergonomics. The interiors seem like they should be in cars costing ten or twenty thousand dollars more. Many little features such as very sophisticated theater style lighting, soft warning chimes, and even pleasant welcoming/departing messages add up to a warm, inviting environment. The glovebox is air conditioned to help keep water bottles cool. Seemingly small touches greatly increase driver and passenger satisfaction. The optional heated and cooled front seats were a total wow at the Optima price point. Front legroom is stretch-out spacious and rear seat legroom is great for even tall passengers. The optional panoramic sunroof intrudes slightly on headroom for tall back seat passengers, but it’s not objectionable. We felt the trunk space was above average and very useable in the turbocharged Optima. The floor was fla t with ample distance between the wheelwells. The split fold-down rear seat greatly increased versatility. Hybrid rear seats don’t fold and trunk space is less due to the batteries. Under The Hood: All three of the Optima four-cylinder engines produce at least 200 horsepower. The base 2.4-liter I-4 is exactly 200 hp with 186 lb-ft of torque. The 2.4-liter hybrid produces 206 hp with 195 lb-ft of torque. Our favorite, the 2.0liter turbo engine puts out a stout 274 hp and 269 lb-ft of torque.

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A nicely programmed six-speed automatic transmission helps all three engines perform at their best. A six-speed manual transmission is available with the base engine. The excellent six-speed automatic transmission is indicative of the Optima’s high technology levels. This speaks volumes as to how far Kia has come in a very short time. Fuel economy is very respectable for all three engines. The base engine is rated at 24/35 (for both transmissions); the turbo is rated at 22/34; and the hybrid has the top numbers at 35/40. Our turbo mileage figures were in the midto-upper twenties, mostly because the car was so responsive that we drove pretty aggressively. We tried very hard to balloon foot it in the hybrid, but never got above 35mpg even on long, steady stretches of secondary highways. We consistently stayed in the 33-mpg to 35-mpg range, but we live in a very hilly area and steep hills kill fuel economy averages. There are reasons beyond raw fuel economy numbers to buy a hybrid, but judicious driving habits can narrow the gap between gas and hybrid power. Behind The Wheel: The Kia Optima Hybrid is a sophisticated system that operates seamlessly. Except for extreme quiet in full electric mode you wouldn’t notice anything unusual. The video game style information display lets you monitor all kinds of real time data relative to just how “green” you are. This information quickly points out the pluses and minuses of your driving habits. That the hybrid is so normal says a lot for the quality and sophistication of the system. The Kia Optima Hybrid is a world apart from early hybrids like the ovoid twopassenger Honda Insight. Suspension tuning was far less sporty on the hybrid than the turbo, but it wasn’t sloppy or unpleasant. Whines: The battery pack compromised trunk/cargo space and flexibility. We never achieved the EPA’s 40MPG highway fuel economy, which is a problem we’ve had with other hybrids, too. Bottom Line: We’re big fans of all Kia Optimas. They’re roomy, comfortable, fun to drive, nicely styled, and incredible values. Our favorite is the Optima SX Turbo, but if your leanings are greener, the Optima Hybrid Premium is an excellent choice.

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Mercedes-Benz C-Class now comes in a hot new coupe The dashboard layout is completely new for 2012. The display screen is positioned under a lip also shading a revised gauge cluster. Instrumentation is comprised of analog temperature and fuel gauges on the left, speed/display in the center, and a tach on the right. The controls include Mercedes’ standard 10-key pad on the center stack, making it easy to dial numbers from a Bluetoothconnected phone, as well as select pre-programmed radio stations. The central control knob for the COMAND system (standard on models with navigation), controls the telephone, navigation, and audio systems, and sits on the center console. There’s a learning curve for using COMAND, but it also eliminates other buttons and becomes second nature after awhile. Our test vehicle was equipped with the available harman/kardon LOGIC7, 5.1 Surround Sound system that offers 450 watts of power driving 12 speakers. It also includes an in-dash, single disc DVD/CD player; voice control for audio, navigation and phone; 10GB harddrive with music register for downloading media files, coupled with the Gracenote Music Database, and an in-dash SD card slot; along with Sirius XM music, traffic, weather, and Zagat’s restaurant guide. While real leather is available on any CClass — and was the trim in our test vehicle — the standard upholstery is something called M-B Tex. It looks more like leather than the real thing does in some other cars. Some C-Class models have aluminum trim, while others sport Burled Walnut or Black Ash. You can opt for carbon fiber on the AMG, but whichever you choose it’s the real deal — real aluminum, real wood. Materials include soft-touch surfaces on the dash and other touch points you’d expect in a luxury car. Rear-seat headroom is sorely lacking and legroom is even worse. There are only two real seating positions — in front, so think of the coupe as your basic two-seater. Under The Hood: The C350’s 3.5-liter V6 is all-new for 2012. It’s the same size as last year’s powerplant, but considerably more powerful, and far more fuel-efficient. Mercedes claims it does the 0-60 drill in a respectable 5.9 seconds — two tenths of a second quicker than last year’s 3.5, but I’ve seen reviews claiming times as low as 5.4 seconds. Either way, it feels V8-strong, has a rumbling exhaust note, and delivers almost 4-banger fuel economy at an EPA-rated 20/29 mpg. The standard 7-speed automatic shifts quick and clean. Our test vehicle featured the available Dynamic Handling Package, which includes paddle shifters. Mercedes doesn’t offer a stick for the C250 or C350. Most C-Class models come with rear-wheel

drive, although 4MATIC all-wheel drive is available on all versions. Behind The Wheel: The C-Class delivers an exceptional driving experience, with great driver feedback — the C-Class chassis tells the driver exactly what the car is doing. Steering is precise. Braking is terrific. Handling is rock-solid, and so stable it’s very hard to get into trouble. And it does all this without taking away any of the refinement or comfort that makes driving a Mercedes a fatigue-free process. Whines: The same one I’ve had about Mercedes-Benz for the 20+ years I’ve written automotive reviews — the

placement of the cruise control lever interferes with the turn signal stalk, and in my view is a major safety hazard. Instead of signaling for a turn and slowing down, you engage the cruise as you prepare to go around a corner. Bottom Line: The Mercedes-Benz CClass represents a broad range of models designed for different priorities. This stylish new coupe, equipped with the new 3.5-liter V6 offers surprising power, terrific handling and respectable fuel economy. In short, the C-Class coupe delivers pure driving enjoyment coupled with safety, stability, and Mercedes luxury.

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February 2012 Kitsap Peninsula Business Journal • KPBJ.com 35

By Lary Coppola The C-Class is the least expensive Mercedes-Benz in the showroom — but offers nothing less than you’d expect from Mercedes. The 2012 C-Class includes a new coupe, while the sedans underwent a major mid-cycle update. Our test vehicle was the C350 coupe, so this review will be confined primarily to that vehicle. Model Lineup: The 2012 MercedesBenz C-Class is offered in coupe and sedan versions in C250 and C350, configurations. There is a Luxury, Sport and C63 AMG version of each. Walkaround: The dimensions of the CClass are very similar to the BMW 3 Series or Infiniti G37 coupes. Like most vehicles in this class, it supposedly carries four passengers, with a respectable 11.7 cubic feet of luggage space. A split-folding rear seat is standard on the coupe, optional on the sedan. The C-Class coupe has the Sport version’s front face, which is different than the Luxury model. It features a wide grille reminiscent of the big CLS and CL-Class coupes, with fewer grille bars that are painted silver, and features the Mercedes star front and center. The coupe’s dimensions are similar to the sedan. The rear of the roof drops down in an elegant arc and angles up at the bottom of the rear side windows. Character lines start behind the front wheels getting heavier as they rise to the rear along the sides, defining the wedge-like, forward-leaning silhouette. The coupe really didn’t need much work to make it look hot because of the sedan’s already aggressive profile. The hood has a noticeable center peak, the headlight housings are contoured with new LED turn signals at the bottom, and LED fog lights, while the optional bi-xenon headlights have C-shaped positioning lights. At the rear, the bumper features a more pronounced lower diffuser, visually lightening a rear end that offers LED taillights. Our test vehicle also had the Sport version’s rear trunk lid spoiler and dual chrome-tipped exhaust outlets. Wheels play a big part as well. Our test vehicle had the AMG versions’ 18-inch twin-spoke alloy wheels, which came as part of the agility package, while the Luxury versions use smaller, more elegant wheels. Interior: The C-Class interior is instantly-recognizable Mercedes-Benz — everything you expect, with function over form. For example, the seat controls are mounted on the door panels, and look like miniature seats — just as they have for a couple of decades now. All control stalks are located on the left side of the steering wheel, freeing the right hand for shifting. Another Stuttgart standard is the floormounted gas pedal — which on most other cars is suspended from above. Naturally all the power amenities you expect from any luxury car are there — windows, mirrors, seats, door locks, sunroof, cruise, tilt/telescoping wheel, etc. Our test vehicle was also equipped with the optional COMAND package which upsizes the standard 5.8-inch display screen to 7 inches.


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 PCS Web Hosting LLC Contributing Writers Rodika Tollefson Adele Ferguson Don Brunell Kathleen Byrne-Barrantes Dan Weedin Ron Rada Julie Tappero Paula Bartlett Jason Parker

Our initiative process needs to change By Don C. Brunell, President Association of Washington Business Would you buy a new car or a new house without knowing how you’ll pay for it? Of course not. But Washington voters do something similar every time they approve a costly initiative without specifying how it will be paid for. That needs to change. In 2000, voters overwhelmingly approved two initiatives to hire more teachers and provide annual cost of living increases for all K-12 school employees and faculty at community and technical colleges. Even though the measures would increase spending by hundreds of millions of dollars, neither initiative identified a source of new funding. Within a couple of years, the cash-strapped Legislature suspended both measures. In 2004 and 2010, voters were asked to approve new taxes to pay for those suspended education initiatives. They overwhelmingly refused. That didn’t stop voters from approving two more costly initiatives in 2008 and 2011, neither of which identified a source of funding. Both have since been suspended by lawmakers. It’s easy to support well-intentioned

programs, especially when you don’t have to decide how to pay for them. We got away with it during good times, because the new programs and services were paid for with surpluses and growing tax receipts. Those days are over. But initiative backers realize that it’s much harder to get voters to approve your measure if the price tag is staring them in the face. For example, last year, the Service Employees International Union wanted to put an initiative on the ballot that would reinstate training and certification requirements for long-term care workers. Those requirements had originally been part of an initiative approved by voters in 2008, but lawmakers suspended them for lack of funds. SEIU had filed several versions of its “reinstatement” initiative with the Secretary of State that did identify funding sources — a $1 per pack cigarette tax increase, a $1 per liter liquor tax increase, or various other tax increases. In the end, they chose the version that did not specify how it would be paid for. It was approved by voters but never funded by lawmakers. What about the courts? Couldn’t they step in and force lawmakers to fund these programs? Perhaps not.

In 2010, the State Supreme Court was asked to compel Gov. Gregoire to include funding in her budget for wage increases that had been awarded by an arbitrator to home health workers. The court declined, citing the governor’s discretionary budgetary power. In reality, all this turmoil is unnecessary. There would be no need to force funding of suspended initiatives if all initiatives placed on the ballot were required to specify what they will cost and how they will be paid for. However, this may not happen anytime soon. After all, it’s far easier to get voters to approve new spending if they don’t have to think about how to pay for it. Perhaps initiative backers are content to know that, even if those costly obligations are delayed or suspended, they stay on the books. When the economy begins to recover, the added costs from all those suspended initiatives will kick in again. But it’s time to stop playing games with our initiative process. Voters have a right — and an obligation — to know how ballot initiatives will be paid for.

CENTURYLINK

overchanged on the tax rate PLUS Kitsap County is not getting the sales tax revenue source nor the 911 service revenue funds so badly needed. I live in Olalla, which is in Kitsap County. My neighbor is also being charged incorrectly. Every time I call Centerylink about this problem, they fix it and it stays correct for 2 or 3 billing cycles and then reverts back. Sometimes I don’t catch the change back for months before I call again.

If everyone in Olalla is charged this wrong rate, that means that hundreds if not thousands of dollars is being sent to King County, each month, instead of to Kitsap County. I recently put in a complaint with the Attorney General’s office and have notified Kitsap County Treasurers office as well as the 911 Service division. Please look at your phone bills and if

36 Kitsap Peninsula Business Journal • KPBJ.com February 2012

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Member Kitsap Economic Development Alliance Kitsap Visitors and Convention Bureau Homebuilders Association of Kitsap County Bainbridge Island Chamber of Commerce North Mason Chamber of Commerce Poulsbo Chamber of Commerce Silverdale Chamber of Commerce

I don’t know how far reaching this problem is. However, over the last 3 to 4 years I have been battleing Centurylink Phone Company for charging me KING County Sales tax and KING County 911 Services tax on my telephone bill instead of KITSAP County tax rates. Because of this charging me for the wrong county taxes and 911 service, I am

See Letters To The Editor, page 38


Tacoma Narrows Bridge toll increases explained I was appointed by Governor Gregoire to the Tacoma Narrows Bridge Citizen’s Advisory Committee (CAC) in 2010, and would like to offer some insight as a committee member. Fact: We need to find an additional $25 million in toll revenues for Fiscal 2013 (July 1, 2012-June 30, 2013). 40 percent of this increase is due to bonds coming due. This is one of ten bonds that were taken to construct the bridge because of the “just in time” construction and bond schedule, which saved taxpayers millions of dollars in interest. Also, the first installment of deferred sales tax is due next year (the agreement was to start paying the $57 million in sales tax over a span of 10 years working out to about $5.7 million per year). In addition, the bridge has been sort of living on its reserves for the past few years and we have a contractual obligation to have 12.5 percent in reserves, which was set by the Treasurer, otherwise we will be in default of our bonds contract. (Note: the Treasurer is telling WSDOT they must have 25 percent in reserves on the 520 Bridge.) People frequently ask why do we need to increase tolls during such a challenging economic time? The debt schedule was written such that these bonds would increase over the first 17 years. Increased steps in toll rates were anticipated to meet these debt payments. We are obligated to make payments to bond holders and do not have an option to refinance. Traffic and revenues

are flat due to the recession and at the current tolls rates we will fall behind on payments in Fiscal ‘13. In the past, WSDOT and the CAC agreed to defer rate increases and continue using some of the reserve funds but that is no longer an option. Senator Derek Kilmer said he is looking into some other AMY IGLOI refinancing options, but the My Turn likelihood of any other solutions coming to fruition is slim. Note: the current Good To Go rate of $2.75 is substantially below the original projection of $4 tolls for all drivers by 2010. Senator Kilmer said a bill was introduced to extend the deferred sales tax — Bill 6073. The relief this bill would have on tolls is roughly a $0.40 savings each time a toll is paid. Frankly, I am not sure how likely it is this bill will pass since Washington State is facing a $1.5 billion deficit and another very tough legislative session. There is some discussion of whether the 12.5 percent reserve requirement is unnecessary or too high. I don’t want to get into that debate because it doesn’t serve any purpose right now. Before construction began, these details had been written and agreed upon and I don’t see that it is a negotiable point, so many years later.

you are being overcharged also, please contact the Kitsap County Treasurer and your phone company for recourse.

elections where the will of the electable majority can be buried in a dirty tricks campaign. Please join me in telling your legislators to vote no on HB 2004 and any other bill that legalizes same day registration

Pauline Cornelius Olalla

VOTER REGISTRATION One of the reasons I have been proud to be a Washington resident is that for the most part, especially Kitsap County, we have an honest elections system. That is in contrast to King County’s reputation. I am sorely disappointed that the Democrat leadership has so little faith their ability to garner majorities that they stoop to measures that undermine the integrity of elections by introducing a bill to legalize Election Day registration in Washington state (HB 2204). Look no further than Wisconsin where a citizen’s group conducted a seven-month investigation into 11,000 people who registered and voted on the same day in a 2011 election. They found a 33.7 percent error rate — 3,739 people in all. This could wreak havoc on a top two primary. Where destruction of this safeguard is critical is for city and special taxing district

get us all the information we request so we can make the most informed recommendation possible. Unfortunately, the biggest dilemma here is finding how we can do the least amount of harm while making general assumptions on how raising the toll rates will impact revenues and how those changes will affect our ability to meet our financial obligations on the bridge. I would like to remind everyone that the CAC is an advisory board with no specific powers than to give recommendations to WSDOT and in the end they have the final say. To the best of my knowledge, there has only been one instance the final decision WSDOT made was against the CAC’s recommendation. I’d like to extend my gratitude to our 26th district legislators Senator Derek Kilmer, Representative Larry Seaquist and Representative Jan Angel who have followed this issue very closely on our behalf. They attend these meetings frequently and offer much insight and advice on the legislative processes. This Bill 6073 may provide some relief but while I’m hopeful, I am not banking that it will pass. Our next meeting is Feb. 8 at the Gig Harbor Civic Center. There will be a WSDOT open house from 5:30-6:30 p.m. with the CAC meeting and public hearing beginning promptly at 6:30. There will be another meeting Feb. 22, place TBD and another meeting, if necessary, on March 9. If you have any questions feel free to email me at amysonthebay@yahoo.com.

Matt Ryan Bremerton

PLASTIC BAGS Does the arrogance of the Bainbridge Island City Council know no bounds? Its most recent foray into nanny statism over plastic bags is proof that these elitists sincerely believe they have been anointed with a superior form of intelligence, and therefore know what is best for the obviously uneducated masses better than we do. They cite no scientific evidence that people don’t recycle, and/or reuse plastic bags — because there isn’t any. We do it every day. Plastic bags have lots of great re-uses — they can double as mutt mitts; trashcan liners; rag bags; and food storage bags for example. They’re handy for transporting clothes and other things between two different locations. At my house, we use them to put recycleable cans and bottles in. The potential reuses are only limited by the imagination. The proposed ban is little more than political correctness and environmental extremism run amuck — but what else is new here on Braindead Island? John Baker Bainbridge Island

February 2012 Kitsap Peninsula Business Journal • KPBJ.com 37

(Editor’s Note: Upon receiving this, with Ms. Cornelius’ approval, we forwarded it to all three county commissioners, as well as the Mayors of all four cities so all could make sure they were receiving their fair share of what CenturyLink collects from the citizens of Kitsap County.)

Some of my thoughts on the tolls: I have some serious concerns about raising toll rates but all the data we’re seeing says it must be so. I attended my first meeting late 2010 and I feel like I’ve been appointed to be one of the captains of the sinking Titanic. When I’m reading articles from the Seattle Times that 520 with its new tolls (set at $3.50 with Good To Go and $5 without a state issued pass) saw 40 percent fewer vehicles than normal on January 3, (http://seattletimes.nwsource.com/html/l ocalnews/2017153722_tolling04m.html) and 20-25 percent increase in traffic on I-90, it deeply concerns me. Seattle traffic was about 10 percent down and feedback shows more people are finding alternatives to paying the tolls. As a local restaurateur, a Port Orchard resident and someone who frequently utilizes the bridge, I look at this problem more from a tourism perspective. If people from the Pierce County/King County side are looking for alternatives to paying the toll, they have many to choose from. They can choose to stay in Tacoma, Seattle or venture to other areas in the greater Puget Sound region for shopping, dining and entertainment needs. That’s going to hurt commerce on the Peninsula. AND then CAC and WSDOT will have to meet again to raise toll rates to make up for lost revenue — which is a bad downward cycle to get into. I want to reiterate to everyone the CAC is looking at all the details closely. WSDOT has been very helpful and working diligently to


Urine tests for cheeseburgers, and other random musings I read where the largest employer in Waukesha, Wisconsin — General Electric (GE) — is planning to move its 115-year-old X-Ray Division from Waukesha, to Beijing. In addition to moving the headquarters, GE will invest $2 billion in China. It will train more than 65 engineers, and create six research centers among other things. This is the same GE that made $5.1 billion in the United States last year, but paid no taxes — and employs more people overseas than it does in America. Meanwhile, President Obama recently appointed GE Chairman Jeff Immelt to head his commission on job creation. As the socalled “job czar,” Immelt is supposed to be helping create jobs. I guess the President forgot to mention it was in this country where he is supposed to be creating those jobs.

38 Kitsap Peninsula Business Journal • KPBJ.com February 2012

According to a recent Gallup poll reported by Politico, Conservatives continue to make up the largest segment of political views in the country, outnumbering Liberals nearly two-to-one. Of the 20,393 people polled from January through December of last year, Gallup found 40 percent of Americans consider themselves Conservatives; 35 percent consider themselves Moderates; with 21 percent defining themselves as Liberals. These are the same figures Gallup found in 2010. More telling however, is that for the third straight year, Conservatives outnumbered both Moderates and Liberals. According to previous Gallup polls, it appears Moderates seemingly began turning into Conservatives in significant numbers in 2008 — just as they began losing their jobs in the Obama economy — while the percentage of Moderates has also declined

steadily over the past two decades, from 43 percent 1992, to 35 percent in 2011. Although the Republican Party is dominated by self-identified Conservatives who make up 71 percent, the Democratic Party is more evenly split — with 39 percent of viewing themselves as Liberals, and 38 percent as Moderates. The wild card is the Independents who are mostly moderate (41 percent), but lean more toward conservatism (35 percent) than liberalism (20 percent). Meanwhile, both self-identified Conservatives and Liberals have risen in number LARY COPPOLA since the early 1990s, which The Last Word accounts for the growing political polarization America continues to suffer from. However, the trend is clear, and correlates directly to the state of the economy. Ironically, it appears that Bill Clinton long ago understood something very basic that President Obama still fails to grasp. To quote Clinton… “It’s the economy stupid.” Worried about what Obamacare will mean for you? Then this should scare you. In Japan — already the slimmest industrialized nation on the planet — people are being forced to comply with a government-imposed waistline standard. Japanese lawmakers have set a maximum waistline size for anyone over age 40 — 33.5 inches for men and 35.4 inches for women.

In the United States, the Senate and House health care reform bills have included the so-called “Safeway Amendment,” which would offer reductions in insurance premiums to people who lead fitter lives. The experience in Japan offers lessons in how complicated it is to legislate good health. Though Japan’s “metabo law” aims to save money by heading off health risks related to obesity, there is no proof that it actually will. Under Japan’s health care coverage, companies administer check-ups to employees once a year. Those who fail to meet the waistline requirement must undergo counseling. If companies do not reduce the number of overweight employees by 10 percent in 2012 and 25 percent by 2015, they could be required to pay more money into a health care program for the elderly. An estimated 56 million Japanese will have their waists measured this year. Never mind that Japan has some of the world’s lowest rates of obesity — less than 5 percent, compared to nearly 35 percent for the United States. Meanwhile, a number of US companies — especially hospitals and medical businesses — are adopting strict policies making smoking a reason to turn away job applicants. The rationale is increasing worker productivity, and reducing health care costs by encouraging healthier living. Federal estimates say employees who smoke, cost on average, $3,391 more a year each for health care and lost productivity. About 1 in 5 Americans still smoke, and smoking remains the leading cause of

preventable deaths. Meanwhile, a spokeswoman for the confrontational Service Employees International Union (SEIU), which represents 1.2 million health care workers, said the issue isn’t on its radar — yet. The new rules essentially treat cigarettes as an illegal narcotic, and job seekers must submit to urine tests for nicotine, as well as other drugs. This shift — from smoke-free to smoker-free workplaces — brings up an interesting question about whether the policies establish a troubling precedent of employers intruding into employees’ private lives to ban a legal habit. What’s next — urine testing for cheeseburgers? An alert reader sent me a link to a story about a new Washington D.C. law that governs how pest control operators must handle rats, and why it may result in entire rodent “families” being relocated across the Potomac River into Virginia by D.C. pest control personnel. The law says they have to capture them — in families — (not sure how exactly they figure that out) and relocate them at least 25 miles away, because according to experts, rats will find their way back home any closer. An easy way to solve that problem is crossing a body of water. And what’s on the other side of the Potomac River? Virginia. Considering Seattle’s new law, and Bainbridge Island’s recently proposed ban on plastic bags, our reader was afraid the Bainbridge Island City Council may actually consider something similar. And what’s on the other side of Agate Pass? Suquamish, Poulsbo, Keyport and Bremerton.

Thoughts on things in the news ITEM — Letter grades have disappeared from many elementary schools and they may soon fade from middle and high schools as well. Students are getting report cards with ones, ADELE FERGUSON twos and threes instead Politics of A’s, B’s and C’s. It’s called standards-based grading, focusing on which skills a student has mastered, rather than how hard he or she worked to attend class or turn in homework. Grading consultant Ken O’Connor said “instead of providing a single grade for a student, you get a profile of student performance.” COMMENT — No wonder the poor damn kids can’t get into college without remedial work. Teachers should concentrate on teaching instead of figuring out how to slide the kids through 12 classes without any

failures by adjusting the grade system from A for best, B for almost best but at least better than C, which is average. I believe they already got rid of F for failure because no kid is allowed to fail. Hurts his feelings. ITEM — President Obama’s chief of staff Bill Daley threw in the towel, saying he wants to go back to Chicago to spend more time with his family. COMMENT — Just once, I wish an early departing political hireling told the truth about why he’s leaving the job, which usually is (1) I was fired but we want to make it look like it was my idea to leave; 2) I don’t think he is going to be reelected and I need to start looking for a new job; (3) I smell a rat and I want to get out of town ahead of the sheriff. Whatever it is, the former boss always expresses extreme regret at the loss in hopes the departing one takes it easy on him when he writes a book. ITEM — Washington State Ferries might eliminate five routes if legislators can’t provide more funding. Transportation Secretary Paula Hammond said only the three top —

performing routes — Seattle-Bainbridge, Edmonds-Kingston and Mukilteo-Clinton — would be spared. That puts in jeopardy Seattle-Bremerton, Southworth-Vashon, Southworth-Fauntleroy, Port TownsendCoupeville, Tahlequah-Point Defiance and Anacortes-Sidney. The $1.3 billion deficit in the budget means there is no money to operate boats and terminal, she said. COMMENT — Knock it off, Madame Secretary. As long as there is revenue for highways, there is revenue for ferries since the Supreme Court ruled years ago that ferries are part of the highway system. They are our marine highways and entitled to whatever it takes to run them. Want to raise some money? Put tolls on all the mountain passes or shut down all except Snoqualmie but with a hefty toll there. ITEM — Momentum for a statewide ban on plastic bags appeared to be mounting three weeks after Seattle’s City Council unanimously banned single use plastic bags from groceries and other retail stores. Proponents of the ban cited finding

of plastic bags in the carcass of a dead whale retrieved from Puget Sound, saying they are a danger to wildlife. COMMENT — C’mon, ONE whale? And will you quit calling them single use bags? They see multiple uses. I put paper bags inside of plastic to collect garbage. I donate surplus bags to St. Vincent Be Paul Thrift Center where they are used to sack purchases for customers. Dog owners use them as pooper scoopers. Just because Seattle wants to suck up to the greenies, leave the rest of us alone. ITEM — Washington politicians have abdicated their leadership role in higher education, according to a study by the University of Pennsylvania Graduate School of Education, forcing employers to go out of state to find skilled workers. COMMENT — They’re too busy with important stuff like legalizing gay marriages and making marijuana legal. They don’t call this the Left Coast for nothing. (Adele Ferguson can be reached at P.O. Box 69, Hansville, Wa., 98340.)


February 2012 Kitsap Peninsula Business Journal • KPBJ.com 39



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