April 2013 Vol. 26 No. 4
The Voice of Kitsap Business since 1988
Testing free WiFi zones downtown
Hale’s Alehouse makeover pg 10
Medical cannabis and I-502 pg 15
Inside Special Reports: Healthcare Quarterly, pp 12-18 Automotive, pp 28-35 People, pg 2 Human Resources, pg 8 Real Estate, pp 23, 24 Technology, pg 25 Financial, pp 26, 27 Editorial, pp 36-38 Home Builders Newsletter, pp 19-22
PUD pilot program installs antennas that tap into fiber optic broadband network By Rodika Tollefson A large portion of downtown Poulsbo including the waterfront has free public WiFi— and if Kitsap Public Utility District’s wishes came true, all the other downtowns could, too. And not just downtowns.
Tim Kelly photo
Rafe Anders of Poulsbo, who works in sales for T-Mobile in Seattle, uses the free WiFi connection at The Loft in downtown Poulsbo. The technology is available through a pilot progam the PUD started offering recently. The district provides high-speed WiFi via antennas that connect through a router box of sorts to its fiber-optic broadband network. The antennas use mesh Cover Story, page 6
Cleanup agreement reached for Port Gamble Bay, mill site $5 million in potential state funding for related North Kitsap conservation project remains uncertain KPBJ Pope Resources and the state Department of Ecology reached an agreement for completing the cleanup of Port Gamble Bay, after negotiating three weeks beyond a deadline Ecology had set. The deal also assures at least $2 million in state funding will help the Kitsap Forest & Bay Coalition purchase a substantial area of shoreline owned by Pope Resources. The sticking point in the protracted negotiations had been Pope’s intention to proceed with the cleanup of the former Pope & Talbot mill site in Port Gamble, but to delay removing two docks on the south side. The company
wanted to leave the docks intact until permits could be obtained to build a replacement dock north of the site, where future waterfront development is planned as part of Pope’s redevelopment of the town of Port Gamble. “At the end of the day, Pope just basically conceded on the docks,” Jon Rose, president of Pope’s Olympic Property Group, said in a telephone interview March 25. Under the final terms of the cleanup agreement, all docks and overwater structures at the site will be removed by the fall of 2015. The company had wanted to leave the two south docks until such time as their removal could meet mitigation requirements for construction of an approved new dock. Instead, Pope Resources will be able to apply for Cleanup, page 5
Experienced executive joins Liberty Bay Bank management staff Poulsbo-based Liberty Bay Bank has hired Rhonda Morris to join its executive management team. Morris, a native of the Pacific Northwest, has more than 30 years of diverse banking experience. She started her career after college at Jefferson National Bank in her hometown of Port Townsend, and after more than a decade working in the Seattle area she wanted to come back to work for a community bank again.
Morris will serve as chair of the bank’s technology oversight committee, in addition to overseeing the bank’s operations, compliance, information technology, security, training, audit and human resources.
American West Bank hires new Poulsbo branch manager
Rhonda Morris
AmericanWest Bank has hired Shaun Stephenson as branch manager for the bank’s Poulsbo branch. Stephenson has more than 35 years of banking and financial services expertise, including significant lending experience as well as managing Shaun Stepenson
branches. The American West branch in Poulsbo is at 18960 Highway 305 North. Stephenson can be reached at (360) 394-1701. AmericanWest Bank has 41 branches in Washington and 80 overall. For more information about the company, visit www.awbank.net.
Silverdale broker earns award from RE/MAX Craig Steinlicht, broker/owner of RE/MAX Victory in Silverdale, received the RE/MAX® Platinum Award during the company’s annual convention held recently in Las Vegas. “Craig has had an outstanding year for our company,” said Paul Brewster, RE/MAX vice president of the Pacific Northwest Region. “His dedication to customer Craig Steinlicht service, attentiveness and tenacity in negotiating for his client’s interests has not only earned him the No. 1 commercial broker in the PNW region, he was ranked 18th in the United States and 37th for RE/MAX worldwide.” “It was an honor to be recognized for top performance in this exciting industry,” Steinlicht said. “I sincerely appreciate the confidence my clients have expressed by trusting me with their business.” Steinlicht, with over 20 years of experience in the real estate industry, opened a new RE/MAX office in Silverdale in 2012.
2 • Kitsap Peninsula Business Journal • KPBJ.com April 2013
Local insurance consultant signs book deal with international publisher Dan Weedin of Poulsbo, an insurance consultant, executive coach, and speaker in the Seattle area, has reached an agreement with Global Professional Publishing, LTD to write a book for insurance professionals titled, “Insuring Success: How to Sell Insurance When People Don’t Realize They Need It.” Global Professional Publishing is based in the United Kingdom and the company specializes in business books that are sold internationally. The book is scheduled to be available within nine months. There will be future announcements about pre-orders and events leading up to and after the book’s publication. Weedin has been in the insurance industry since 1987. He has been a company underwriter, an insurance agent, and a consultant since 2005. His experience in all three elements of the insurance transaction provides him the opportunity to improve and accelerate the growth and career development for insurance agents and industry professionals. For more information, contact Weedin at (360) 271-1592 or dan@danweedin.com. His website is www.DanWeedin.com and he has a blog at http://InsuringSuccessBlog.com.
Business etiquette presentation featured at AWOB meeting
CPA firm in Silverdale offers free document shredding
State’s E-Cycle program. For additional information, call Waterfront CPA Group at (360) 692-9000.
The Alliance of Women Owned Businesses will host a session on business etiquette at its next Power Series meeting on April 10. The presentation by Stephanie Rowland of Top Dog Etiquette will be from 56:30 p.m. at the Inn at Gig Harbor restaurant. The meeting is open to all, and the normal second-visit fee for nonmembers is waived for this AWOB event. Stephanie New members can sign Rowland up at the meeting. AWOB’s Power Series meetings are held the second Wednesday of each month at the Inn at Gig Harbor. They feature guest speakers, roundtables or panels on topics of particular interest to female entrepreneurs. The meetings offer opportunities to meet with other women business owners. A special feature of the Power Series meeting is the AWOB Meet Me After Hours, a no-host dinner, held after the meeting. For more information: www.allianceofwomenownedbusinesses.co m or Alliance of Women Owned Businesses on Facebook.
Trying to live “greener?” Clean out old files and help the environment by safely destroying dated personal documents at the seventh annual CPA ShredFest in Silverdale on April 13. To protect the privacy of clients and neighbors, Waterfront CPA Group of Silverdale is offering a safe, green way to dispose of old tax returns and sensitive documents. On-site shredding of personal documents will be provided by All Shred of Bremerton. In an effort to further lower carbon footprint, All Shred then uses the resulting paper shred in a special composting process, and produces its own unique mix of compost for local gardeners. The shredding service will be offered from 9 a.m. to noon in the parking lot of the Land Title Building at 9657 Levin Road in Silverdale. The first 20 pounds of documents will be free, and the charge for additional shredding is 30 cents per pound. As an extra bonus, some electronics will be accepted for recycling, using Washington
Labyrinth Hill hits milestone for online lavender-growing course More than 500 students around the world now have taken an online basic course in growing lavender offered by Layrinth Hill Lavender in Hasville, CEO Susan Harrington reports. A pre-spring surge of 35 prospective lavender growers — including the first from South Africa — have added to registrants in the U.S., Canada and nine other countries. Most are interested in growing lavender as a commercial crop. Others look for guidance in growing the fragrant herb in their garden landscapes.
Watch it! Like it! Share it!
It’s Here!
New senior underwriter joins Kitsap Bank staff
Positioned for Prosperity ...Connected and Competitive
Pick up your copy of the 2013/2014 Remodel Kitsap Magazine — at Kitsap Peninsula Business Journal racks, also at lenders, builders, real estate offices and title companies. Or call 479-5778.
Sick & Tired of Your Wet Basement or Nasty Crawlspace?
Learn how & why at:
www.KitsapConnected.org
Visit
www.kitsapeda.org for more information
360-377-9499
To schedule a free inspection and estimate call:
360-698-0260 Toll Free: 877-698-0260 WSCL #:CLEANSN93BW 11875 NW Silverdale Way, #105
See firsthand solutions at: www.cleanspacenorthwest.com
Kitsap Economic Development Alliancek 4312 Kitsap Way #103 | Bremerton, WA 98312
April 2013 Kitsap Peninsula Business Journal • KPBJ.com 3
Kitsap Bank has hired Kerry Lindberg as a senior mortgage underwriter. Lindberg has more than 10 years experience in conventional, VA and FHA underwriting. “We are excited to Kerry Lindberg have been able to recruit the mortgage underwriting talent of Kerry Lindberg to the Kitsap Bank team,” said Matt Kover, Senior Vice President/Mortgage Loan Manager. Kitsap Bank is headquartered in Port Orchard and operates 21 locations throughout Western Washington.
“With students in such diverse climate locations as Ireland and England, Poland, Italy, Australia, Eygpt, Bermuda, Mexico and Brazil, we like to think we're helping put Kitsap County on the map,” Harrington said. “Lavender can grow just about anywhere with the right varieties and preparation,” Harrington said. Though maintaining a small lavender crop at several North Kitsap locations, Labyrinth Hill (LabyrinthHill.com) now focuses on providing educational programs for growers. It produced and hosted the first Northwest Regional Lavender Conference in November 2011, and the event drew 150 participants from 17 states and three Canadian provinces. Established in 2002, Labyrinth Hill ships fresh-cut lavender bundles in midsummer.
4 • Kitsap Peninsula Business Journal • KPBJ.com April 2013
CLEANUP
File photo
Pope Resources will remove all docks and other overwater structures at the former mill site on Port Gamble Bay by the fall of 2015 as part of a cleanup agreement with the state Dept. of Ecology.
April 2013 Kitsap Peninsula Business Journal • KPBJ.com 5
from page 1 advanced mitigation credit as part of its new dock application, but that’s likely to be a long and uncertain process that’s subject to appeals. “You can expect that we’ll be applying for a dock very soon,” Rose said. He said Pope Resources was not disappointed with the outcome of the negotiations, despite not getting the allowance they sought on the docks. “Would we prefer to do the docks the other way? Yes,” he said. “But I think we got heard at Ecology, and our issues were given thoughtful consideration.” Announcements issued March 22 by the company and Ecology say Pope will sign a consent decree, which is a legally binding agreement, that stipulates the cleanup also will include: • Removal of about 2,000 creosote pilings; • Excavation of intertidal areas and dredging of wood waste from the bottom of Port Gamble Bay; • Installation of a sand-cap of up to four feet in specific locations in the bay. The clean-up is estimated to cost $17 million, and the agreement with Ecology allows Pope to engage in discussions about sharing that cost with the state Department of Natural Resources, which is the other Potentially Liable Party as determined by Ecology. The agreement also includes Ecology allocating $2 million for the removal of the company’s sewer outfall that drains into Hood Canal, and a $2 million contribution from Ecology to assist in the acquisition of the nearly 500-acre shoreline block owned by Pope that contains almost two miles of Port Gamble Bay shoreline south of the old mill site. That $4 million is part of $9 million in potential state funding the Legislature had approved contingent on completion of a cleanup agreement. The Kitsap Forest & Bay Coalition — which includes community conservation groups and local and tribal governments — has been working for the past few years to obtain grants to acquire the $4.6 million shoreline block for conservation, along with other tracts of forestland owned by Pope in North Kitsap County. The coalition had estimated it would have a total of about $12 million for land acquisition when an 18month option with Pope Resources expired this spring, but that amount included $7 million of the expected state funds. Rose said it will be left up to state legislators in the 23rd District to work with Ecology on securing the balance of the funds for the Kitsap Forest & Bay Project. The company also said its negotiations with Ecology included extensive discussions on a voluntary Natural Resource Damages (NRD) assessment entailing restoration projects on and around the former mill site, although those issues were unresolved and will require further talks. Rose said the cleanup agreement was Ecology’s primary concern, and that NRD issues are usually dealt with separately from environmental cleanup negotiations. Besides the $17 million mandatory
cleanup of the bay, Pope Resources had previously disussed voluntarily spending several million dollars more on restoration of additional areas around the mill site, where plans called for development of a research and cultural center. “I want to thank everyone involved in this for working long and hard to reach a conclusion to these negotiations that will allow for the final phase of Port Gamble’s cleanup to commence,” Pope Resources president and CEO David Nunes said in a statement announcing the cleanup agreement. “I particularly want to thank Maia Bellon from the Department of Ecology, who in her first weeks in office as Director of that agency brought a focused effort on reaching an equitable resolution to this complex cleanup project. We are also grateful to our 23rd District legislators and Congressman Derek Kilmer who were instrumental in obtaining the funding to protect and restore Port Gamble Bay and still remain very involved.”
from page 1
wireless for years, but we didn’t think there was the technology to bounce the signal from one to technology out there to do another, which means not every antenna it,” he said. needs a box because there could be four There are several types signal “hops” for every box connected to of antennas and each setup fiber-optic cable. Essentially, the antennas are costs an average of $6,000, helping extend the network without having ranging from $4,000 to to extend the fiber-optic cable, saving money. $8,000 depending on how PUD general manager Dave Siburg said many antennas and boxes the pilot is part of the district’s Community are installed. The biggest Access, Readiness and Empowerment antenna, called omni, Network, or CAREnet, an effort to create a transmits the signal in a redundant network that can be used to 360-degree range but not as communicate in case of disasters. Through far; others only handle 180 that project, the fiber-optic cable is being degrees but go farther. extended to government buildings, schools Much of their capabilities, and other public facilities. however, are theoretical — “As we’re looking to continue building variables such as wind, Rodika Tollefson photo out CAREnet, we realized it’s expensive to topography and even Kitsap Public Utility District telecom superintendent Steve Perry bring (fiber) to every building,” he said. humidity impact the actual shows one of the WiFi boxes and antennas that the district is piloting for feasibility. “We started looking at other technologies.” signal. This particular technology was used The signal is transmitted And by using it, he means a lot of people during the Beijing Olympics. The antennas through the same open spectrum used by at the same time, doing high-bandwidth can transmit the signal at 300-megabyte common things like microwaves or public things like streaming video. speeds in theory, but the connection will be WiFi (otherwise each user would need an The PUD has been talking with as fast as the user’s device. “It’s not as robust individual device), which impacts government entities, businesses and others and fast as fiber-optic, but it’s generally transmission strength even further. That is about installing a box and/or antenna on faster than most others,” Siburg said. why the PUD wants to deploy as many their buildings. Businesses were generally Steve Perry, superintendent of telecom antennas as possible in as many areas as responding quicker, so the district has shifted for the PUD, said there’s the notion that possible, so all the capabilities and to target the business community. So far, six Kitsap is not a good “candidate” for wide limitations can be explored. antennas and five boxes have been installed, WiFi deployment, but these antennas may “We need people to try it out and use it so most in downtown Poulsbo, but there’s an prove otherwise. “We’ve had our eyes on we can find out what it can do,” Perry said. interest in just about all the other areas of the county. It doesn’t cost the building owner to have the equipment installed, but it does cost a small amount for electricity (an estimated $24 per year). Sandy Kolbeins, owner of The Loft restaurant, is one of the business owners who signed the simple, one-page agreement allowing PUD to install the equipment on Full Service Bar • Happy Hour Everyday • 3pm – 5pm his building. He still needs to have secure For fabulous food in a relaxed WiFi for credit card transmissions, so it’s setting and a beautiful view of not actually saving his business any money. Sinclair Inlet, Amy’s On The Bay “The idea of free WiFi in downtown is a great choice to treat yourself to a delightful dining experience with so many wonderful dishes to try. Gluten-free items are available.
6 • Kitsap Peninsula Business Journal • KPBJ.com April 2013
Casual Waterfront Dining in Downtown Port Orchard
Voted “Best Steak” and “Best Seafood” by the people of SK 5 years in a row!
“The idea of free WiFi in downtown Poulsbo sounded progressive and the right thing to do.” Sandy Kolbeins, owner of The Loft Poulsbo sounded progressive and the right thing to do,” he said. One goal is to expand the project into neighborhoods, especially low-income ones. Siburg said that due to budget cuts, many governments are no longer open five days a week, which means people have to pay — by having an Internet connection — to access what should be a free service. “Essentially people are paying to access government. This could be looked at as an exercise in democracy as well,” he said. If the technology does prove itself, it could create new retail opportunities for Internet service providers that buy wholesale bandwidth from the PUD, which is not allowed to sell the service directly to consumers. The PUD also hopes it creates other innovative applications and it becomes, essentially, a community co-created network. Siburg said so far there hasn’t been any opposition from commercial carriers, but that could be due to the small reach of the pilot program so far. “We’re not naïve to think there wouldn’t be any concerns,” he said. The pilot is funded through the PUD general fund, which dedicates a certain portion every year for experimenting with new technologies. The PUD doesn’t have a spending or unit limit on the antenna deployment, nor a specific timeline for when the pilot would end. “(It will last) until we have the answers if it’s a viable alternative to extend CAREnet,” Siburg said. “So far, it’s been very promising.”
Amy’s On The Bay Restaurant & Bar 100 Harrison Avenue, Port Orchard 360-876-1445 www.amysonthebay.com
Coming Next Issue...
Banking & Finance Get the latest information on banking and lending for business.
Deadline to reserve advertising space
April 16th For more information: Dee Coppola 800-733-7990 or email dee@wetapple.com
Toll increases recommended on Narrows Bridge
Are You Receiving Our Daily Updates? Sign up now at www.kpbj.com/user
Doña Keating, president and CEO of Professional Options, has been voted one of the top 150 worldwide SMB IT channel influencers. Keating joins a group of colleagues who were chosen for the SMB 150 Channel Influencers List during a two-phase voting process. In the initial stage, channel community members voted on 450 nominees at SMB150.com. Then a panel of industry experts evaluated each nominee based on a pre-established rubric. The community vote accounted for 40 percent of Doña Keating each nominee's overall rating, and the expert panel's decision accounted for 60 percent. "Building Professional Options has been one of the most
rewarding challenges of my life," Keating said. "I'm thankful to my colleagues, partners, and clients for recognizing its success, along with everyone involved with making it what it is today." In addition to leading a successful global consulting practice, Keating was a founding member and president of West Sound Technology Association (WSTA). For more information about her and Professional Options, visit professionaloptions.com and donakeating.com. Keating and others who made the SMB 150 list are invited to attend an awards gala on May 4, during SMB Nation’s Spring Conference at the Microsoft Conference Center in Redmond. For more information about SMB Nation and the SMB Technology Network (SMBTN), visit www.SMBNation.com, www.CloudNation.co and www.Telephonation.com, or www.smbtn.org.
Local. Nationwide. Worldwide. No matter how far you are going… it can take alot out of you. Find out why many families on the move look to us — whether their journey is across town or around the world. We take care at every step and enjoy a long list of repeat customers.
What’s precious to you is precious to us. Nationwide, local & international moving Long-term, heated storage service Our people and our moving supplies set us apart Pianos, antiques, hot tubs Office & industrial moving Display & exhibit moving Free, no-obligation estimates
DOT #534666 HG43090
800-833-9555 • hillmoving.com 360-697-3969 • 206-842-6715 26394 Pioneer Way NW Poulsbo, WA 98370
We Deliver Peace of Mind... WORLDWIDE!
April 2013 Kitsap Peninsula Business Journal • KPBJ.com 7
OLYMPIA — Toll customers and other interested persons will have an opportunity to comment on the Washington State Transportation Commission’s toll-rate proposal for the Tacoma Narrows Bridge. The commission is proposing a 25-cent increase to take effect July 1, and an additional 25-cent increase in July 2014. However, state Rep. Jan Angel (R-Port Orchard) and some other legislators have said recently that Initiative 1185, passed by the voters in November, requires the Legislature to approve toll increases, according to a ruling by the state Office of Financial Management. After similar initiatives were approved in past years, the Legislature transferred its toll-setting authority back to the Transportation Commission. A public meeting to gather comments on the toll-rate proposal is scheduled from 6 to 8 p.m. on April 15 at the Gig Harbor Civic Center, 3510 Grandview St. The commission will not take action at this meeting. A final hearing, where the commission will take additional public comment and plans to take action to adopt new toll rates, will be held from 6 to 8 p.m. on May 20 at the Gig Harbor Civic Center. In addition to the public meetings, comments can be submitted via email to transc@wsdot.wa.gov, or written comments can be mailed to PO Box 47308, Olympia, WA 98504-7308. The proposed toll rates to take effect this year are $4.25 for Good To Go, $5.25 cash and $6.25 for pay-by-mail. The commission is required by law to set toll rates for the Tacoma Narrows Bridge in an amount that is sufficient to pay the construction debt for the bridge, as well as to pay costs related to maintenance, preservation and operations. The bridge was financed with an escalating debt structure to minimize the initial toll rates and impact on bridge users. Debt payments started out low when the bridge opened to traffic in 2007 and are now rising steeply, requiring additional toll revenue each year to pay the escalating obligation. Over the next four fiscal years, debt service payments grow from $45 million in 2013 to $70 million in 2017. The commission evaluates several factors during the toll-setting process, including bridge expenses that are paid for by toll revenue, trends in traffic volumes, the schedule for bond payments, ending balances in the toll revenue account, the rate recommendations from the governorappointed Tacoma Narrows Bridge Citizen Advisory Committee and public input. For more information about the commission, visit: www.wstc.wa.gov/.
President and CEO of Professional Options named to SMB 150 List
8 • Kitsap Peninsula Business Journal • KPBJ.com April 2013
Hiring difficulties may signal need to re-evaluate your process By Julie Tappero Have you ever had a job for which you just couldn’t find the right person? Have you watched a supervisor struggle for months to fill a position, despite the fact that unemployment has been astoundingly high? Have you seen the same job get advertised over and over again, month after month, and asked yourself, “What is wrong in that company?” Why are some positions so hard to fill? I posed this question to a group of highly experienced recruiters, and they readily provided me with answers. We want one just like the last one: It’s not uncommon for a job to evolve over time around a current employee’s skill set. A bookkeeper with a creative side might end up being the person who creates marketing flyers and brochures for your business. But these two skills sets are not generally found together, and requiring that in the next bookkeeper you hire can make that job a lot harder to fill. I’m leaving but I can’t let go: Ownership can be a double-edged sword. We all want our employees to take ownership of their jobs. But this can become a problem if an outgoing employee is involved in the process of hiring their own replacement, and they feel so possessive of their job that they can’t imagine anyone else taking their place. Misjudging job histories: In this changing world of work, traditional career paths are becoming less common. Fewer people are working for the same company for five years or more. In fact, it’s more likely that in the future, employees will work in temporary, part-time and projectbased jobs as independent contractors. Dismissing these candidates as job-hoppers means a company will miss out on very talented prospects. Placing too much importance on degrees: Before you require a degree for a position, ask yourself whether it’s really necessary. Could a certain amount of related experience be substituted for a
degree? Businesses miss out on some incredible talent by passing up experienced people without degrees (think Bill Gates). As college tuitions continue to skyrocket in price while the economy stagnates, more and more intelligent, talented workers are going to forego obtaining degrees. Sometimes, we see degrees demanded for positions that are frankly too low-level to require one. For instance, does your admin assistant really need a Bachelor’s degree in Business? And if they have one, how happy do you think they’ll be working in that job? Inflexible job requirements: Don’t treat a job description like a checklist. You need to understand the essential job requirements that the candidate must have, and which ones you can train them to do. I can’t count the number of times we’ve seen a company pass on a fabulous bookkeeper simply because he or she didn’t know how to use QuickBooks, which is a software skill they could quickly pick up with training. One of the best hires I’ve ever made was a recent college grad who had a degree in Greek and Latin. She was having a tough time finding a job and was eager and willing. She lacked the exact skills we were looking for, but her fierce intelligence was as plain as day. She was like a sponge, soaking up all the training we gave her, and taking on whatever we threw her way. We call this job the “Ombudsman”: Once, I had an employer that made a list of every task in the company that didn’t fit under any other employees’ job descriptions. We called it an Ombudsman position, because there were no traditional job titles we could give to such a random mishmash of responsibilities. It did not end well for us. Jobs that are poorly defined, or that have no real job descriptions, can be very hard to fill. And employees in those roles can be set up for failure. Unless you can find a true jack of all trades (and don’t forget the rest of that saying, which is “master of none”), you’ll probably have a revolving door. Hiring a Director of Happiness: Speaking of bad job titles, this is another mistake that can make a job hard to fill. Are you calling your receptionist the Director of Happiness? That may be clever, but when you advertise that job opening, experienced receptionists won’t know to apply. Instead,
you might get resumes from director-level people with completely unrelated backgrounds. Too much experience is a bad thing: Many people shy away from a resumé with too much experience, assuming that an overqualified employee will be unhappy and leave their job quickly. Before you make that assumption, talk to the candidate! There are many reasons a highly qualified person seeks a lower position. They may have decided to make a change in direction, or they may want a position with lower responsibility or stress. I have a bookkeeper with an accounting degree and a sales person that was a psychiatric nurse. Both are amazing employees! I want it all and I want it NOW!: When you find a great candidate who is currently employed, realize they need to give their current employer sufficient notice. You’d appreciate that if they were leaving your business. Don’t pass them up simply because you have to wait a couple of weeks. After all, you’ll hopefully have them in your business for a good long while. And on the flip side, remember that in this economy, some very good people have been unemployed for a long time. Don’t assume that this means they won’t be great contributors to your business! No one can pass my test!: Over the years, we’ve run into some people with very creative interview and testing processes, and there’s nothing wrong with that — unless, of course, it doesn’t help you hire good people! We’ve known interviewers who love quirky questions (“Why is a manhole cover round?” “How would you fit an elephant in a refrigerator?”), interviewers who fake heart attacks in front of job candidates to gauge their ability to respond to stress, and companies that
administer complex personality tests. If you find yourself repeatedly saying, “So-and-so seemed great for the job, until they failed this one part of our hiring process!” you need to reassess what you’re doing. Fear of commitment: Some hiring managers have a hard time committing to a candidate, always worrying that there’s someone better just around the corner. Never finding the perfect candidate, they pass on great ones. Excessive fear of buyer’s remorse can make a hiring process drag on forever, ultimately hurting your business much more than hiring a less-than-perfect person ever could. If you see yourself, or your business, in any of these scenarios, it’s probably time to reassess what you’re doing. Be aware that while your job sits vacant, and is advertised week after week, great talent is getting quickly snapped up by your competitors. On top of that, active job-seekers who see a job advertised endlessly begin wondering just what is wrong with the position, or with your business, and stay away. Ultimately, re-evaluating our hiring practices from time to time can only make us more successful at acquiring the people we need! (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.)
Real estate veteran honored for 45 years of Kiwanis service
Bill Barrow
Bill Barrow of Coldwell Banker /McKenzie Associates was acknowledged recently for 45 years of service to the Bainbridge Island Branch of Kiwanis International. Founded in 1915, Kiwanis International is a global organization of volunteers dedicated to changing the world, one child and one community at a time. For more information on the community service that Kiwanis of Bainbridge Island provides, visit www.BIKiwanis.org.
West Sound Workforce
15 Years in Business!
Celebrating over 5000 successful job placements on the Kitsap Peninsula! 561320 – Temporary Help Services 561312 – Executive Search Services 561311 – Employment Agencies
Kitsap County
(360) 394-1882
Gig Harbor Office
(253) 853-3633
www.westsoundworkforce.com
Garage band to rock stars Platinum techniques to lead and manage your people to stardom initial training that provides your new talent the right information from the start. If you give them nothing (and I know this still happens in places), they will have a terrible start to their career with you. #3 – Implement a mentoring program Mentoring is now just starting to take hold in savvy organizations. The opportunity for new talent to learn from a veteran is essential. But mentoring is more than just skill development. A good
mentor will be available to help with confidence building, conflict resolution, uncertainty, and be a sounding board. A mentor should not be a supervisor. It needs to be slightly above a peer, yet someone who won’t be viewed as a “boss.” #4 – Set goals and outcomes This can be done with the supervisor and the mentor. As Yogi Berra once quipped, “If you don’t know where you’re going, you might end up
somewhere else.” The most important part of goal setting isn’t the goals themselves. It is the result, the outcome of those goals. Don’t mistake methodology for results. #5 – Feed forward Resist from giving feedback. Feedback tends to be negative and not instructional. Feed forward, as defined by executive coach guru Marshall Techniques, page 11
April 2013 Kitsap Peninsula Business Journal • KPBJ.com 9
By Dan Weedin Recruiting and hiring good talent for your business is the “Holy Grail” for business leaders. Your investment is loaded with money, time and risk. It takes a minimum of 18 months just to break even on that investment, much less to start seeing a return. That’s why being able to maximize that talent and accelerate your return on investment is so critical to your success as a business. Why is it then that many businesses take so long to get those employees out of the garage band mode, and simply hoping that a few will turn into rock stars? The answer is that they don’t know how to coach the American Idol wannabes from start to finish. If you have ever spent any time at all watching the FOX reality singing show, you’ve seen the judges and other singing icons offering coaching, mentoring, and often a good dose of tough love to accelerate the learning. These kids don’t have time to learn slowly. You don’t have time to get your new talent up and jamming, either. Time is money and you should start implementing your own version of American Idol training to get your future stars on the fast track. Here are seven techniques you can immediately and painlessly execute to enhance your talent (no matter how long they’ve been playing in the garage): #1 – Upgrade your hiring practices upfront I’ve seen too many occasions where only warm and breathing bodies need apply. Those warm and breathing bodies often get hired too quickly before it’s determined that they are a good or even decent fit for your organization. Here is what every good hiring practices programs should include (there is a lot more, but that’s a column by itself): • A completed, internally created application that is tailored to your organization and depicts the quality and skills you are looking for in your business. • References as part of the application. Then, you call all references. Not calling references is simply negligent. You can always get some critical information that will be of value. • A face-to-face interview with at least three people in your organization, including the big boss. There is still nothing better than the old “tummy test” when determining a good fit for your culture. #2 – Good stuff in / Results out You know that old technology axiom, “garbage in, garbage out?” The same is true in reverse. You need to set up an
Hale’s Alehouse gets revamped after new business partnership
10 • Kitsap Peninsula Business Journal • KPBJ.com April 2013
By Rodika Tollefson Hale’s Alehouse in Silverdale has been open for three years, and now the restaurant is going through a rebirth of sorts. Sandy Kolbeins and his wife, Angela Gruber, owners of The Loft in Poulsbo, have recently entered into a partnership with Hale’s owners Mike and Kathleen Hale, and have brought their own touches to the brand. “Mike and Kathleen know beer. I believe I know restaurants. It’s a good match,” Kolbeins said. The biggest change is in the menu. About 75 percent is different, with a focus on small plates and fresh ingredients, including locally sourced meat from Minder Farms. “The menu is eclectic,” Kathleen Hale said. “We also have an extensive gluten-free menu.” Another change is in the atmosphere. The décor and the music are different, and the four owners are striving to make the pub
feel more family-friendly. In a Loft tradition, there are plans to bring in a treasure chest for young kids to be entertained. “This is a beautiful place so it doesn’t need much. It just needs a refresher,” Kolbeins said. Kathleen Hale, who grew up in Kitsap and has been at the Silverdale location fulltime for the past two years, said the changes have been exciting. “We knew we needed to do something different with our menu and it was holding us back from what we could be,” she said. “The style was too similar to other restaurants in Silverdale. The restaurant hadn’t met its potential.” She said there has already been a 15 percent increase in volume although the menu was changed only a month ago. In addition to the Hale’s Ale beers, the pub has 10 guest taps, serving local brands such as Silver City, 7 Seas and Rainy Daze.
Kolbeins grew up in the restaurant industry. His father owned a fish-andchips restaurant, and he recalls his first job at age 9 was to peel potatoes at $2 per five-gallon bucket. Before opening The Loft in downtown Poulsbo, he had owned two nightclubs in Seattle and a live music venue in Vancouver, B.C. (he grew up in Canada). He has known the Hale’s Ale brand for many years, and recalls bartending across the street from the Seattle location. “The Hale’s brand is statewide and it really gives us the opportunity to do things on another level.” Kolbeins said he knew he’d want to own more than one restaurant and had looked at other options before coming up with a partnership idea. “The exciting part was the new enthusiasm and the level of expertise,” Mike Hale said. “We wanted to do the best job and
Photo courtesy The RockFish Group
From left to right, Angela Gruber, Sandy Kolbeins, Mike and Kathleen Hale. whenever we can accomplish that, it’s good. The new menu is quite a departure from the pub and I’m enjoying it very much. It’s fun to get a rejuvenation.”
TECHNIQUES
Insurance agency adds staffer at Bremerton office The Bell-Anderson Agency, Inc. recently hired Katie Morris to expand its presence in Bremerton and the Kitsap Peninsula region. Morris comes to BellAnderson with extensive experience in commercial and personal insurance sales Katie Morris and service. To learn more or obtain a quote, contact Bell-Anderson at 877-370-1741 or email jimh@bell-anderson.com.
The Kitsap Community & Agricultural Alliance (KCAA) and the Kitsap Community Food Cooperative are co-sponsoring a Meet the Farmer community event and potluck dinner on April 9 at Olympic High School in Bremerton. The event is an opportunity for the public to learn what participating farmers grow and raise and where their products can be found. Attendees also can sign up for CSA (Community Supported Agriculture) shares for the season. The evening will include the screening of the film “Fresh” starting at 7:15 p.m. Cost for the movie is a $5 donation, which helps pay for site rental and screening fees. Admission to Meet the Farmer is free and doors open at 6 p.m. for the potluck. Olympic High is located at 7070 Stampede Blvd. NW in Bremerton. KCAA recently received its 501(c)3 nonprofit status and has four new board positions to fill for a full roster of 11. The organization is
supported by memberships, which cost $20 a year for individuals and $35 for families. KCAA is currently working on a “buy local” campaign and plans to acquire the trademark for “Kitsap Grown.” Organizers say the focus of this campaign will be to identify and promote the sale of local food and keep local dollars within Kitsap County. For more information, go to www.kitsapag.org or call 360-3559413. The Kitsap Community Food Co-op has been working since 2008 to open a co-op grocery store. The organization has about 350 member-owners. In 2011, the cooperative signed a nonbinding letter of intent to place its store on the old East High School and Bremerton Junior High campus, where a Youth Wellness Center is being developed. However, a final site has not been selected and the organization is considering other options. New members and volunteers are being continuously recruited. For more information, go to kitsapfood.coop.
April 2013 Kitsap Peninsula Business Journal • KPBJ.com 11
from page 9 Goldsmith, focuses on offering positive behaviors and action in the future to attain outcomes an d results. Feedback – You shouldn’t have left the customer without getting payment. I can’t believe you didn’t know that. Feed Forward – In the future; make sure that you always collect payment before leaving the customer. #6 – Show me the… The answer is not money. Certainly, remuneration is important. But for most young people entering the workforce, so are community engagement, organizational culture, and providing transformational products and services. #7 – Role models Steve Jobs said he only wanted to hire “A players.” He didn’t want any B or C level players bringing others downs. While that may be difficult for your business to completely accomplish, it’s not out of the realm to provide the highest quality of role models within your business environment. Employees can be trained; they can be influenced; and they can be role models for future employees. To do that, you have to show them how and make sure they are doing it. New talent will watch the old guard. Make sure it’s what you want them to see. Too many future stars never get out of your garage. Rather, they become mediocre, or they leave and become rock stars for someone else. If you don’t create an intentional and thoughtful training program for your young and new talent, then you will never realize the maximum potential they have. But, if you follow these seven steps, you will begin to build an organization full of rock stars that will rock your revenue and culture. • Dan Weedin is a Poulsbo-based management consultant, speaker, and mentor. He leads an executive peer-to-peer group in Kitsap County where he helps executives improve personally, professionally, and organizationally by enhancing leadership skills. He was inducted into the Million Dollar Consultant™ Hall of Fame in 2012. You can reach Dan at 360-697-1058; e-mail at dan@danweedin.com or visit his website at www.DanWeedin.com.
Two Kitsap ag groups hosting Meet the Farmer event
State, health care providers see ‘ER is for Emergencies’ as success
12 • Kitsap Peninsula Business Journal • KPBJ.com April 2013
By Rodika Tollefson A new initiative to reduce “unnecessary” emergency room visits by Medicaid patients is expected to save Washington state about $31 million this fiscal year. A preliminary report that looked at the first six months since the “ER is for Emergencies” program was implemented last year estimated a 23 percent reduction in ER visits by Medicaid patients who had five or more visits. The ER is for Emergencies initiative is focused on seven best practices that hospitals in the state must follow in order to be reimbursed for Medicaid patients. “It’s a hugely good thing,” said Dr. Tom Minter, medical director for St. Anthony Hospital’s emergency department. “The idea is to take a concerted effort of not pushing (patients) away, but making sure they get the appropriate care the right way.” The idea was the result of a collaborative compromise between the state and several provider groups such as the Washington State Hospital Association (WSHA) after a couple of unsuccessful attempts by the Washington State Health Care Authority to rein in Medicaid expenses. The first, in 2011, was a plan that would have denied reimbursement after a patient made three emergency room visits that were deemed unnecessary, which included about 700 conditions including things such as chest pain. After lawsuits from WSHA and other groups, the health care authority abandoned that plan but created another, a zero-tolerance policy that would deny payment for any ER visit that was deemed,
retrospectively, unnecessary. As one example, if a visit for suspected pneumonia (which can be deadly) turns out to be acute bronchitis, it would go unpaid by the state. Ultimately, the providers and the state came up with ER is for Emergencies, which has required hospitals to implement seven best practices that include tracking ER visits to reduce so-called “shopping” (for narcotic prescriptions), implementing patient education and instituting case management for certain identified patients. “This is by far a more robust system. It’s the kind of intervention that will work to improve the utilization patterns of some patients,” said Dr. Bill Moore, medical director for Harrison Medical Center’s emergency department. Among the results of the effort is a 250 percent increase statewide in the number of providers who are registered in a prescription monitoring program, and an increase from 17 to 85 in the number of hospitals exchanging ER information electronically through a special system called EDIE. Moore said EDIE (which is additional to the electronic health-record systems many hospitals use) has especially made a difference. “It’s a tremendous asset because you could have patients shopping for narcotics or overutilizing the emergency room and you wouldn’t know,” he said. “That requirement has been a real benefit to our practice.” Harrison estimates a 17 percent reduction in ER visits by frequent users, as
Rodika Tollefson photo
St. Anthony Hospital president Kurt Schley (left) visits in the Emergency Department with medical director Dr. Tom Minter. well as a reduction in the number of narcotic prescriptions. St. Anthony in Gig Harbor already had a high admission rate for ER patients (meaning only people with the most acute symptoms were coming in), at 26 percent compared with the 13 percent national average. But the program helps prevent potential abuse, Minter said. “The reality is, emergency care is the most expensive care. There’s a subset of people who clearly abuse emergency departments — some have 40 visits a year. We don’t refuse to see them because we’re mandated by law to see them, but we’re applying the seven best practices,” Minter said. “This is a collaborative plan that’s wildly successful.”
Barbara Malich, CEO of Peninsula Community Health Services, said there’s individualized intervention for frequent emergency room users, and PCHS as the primary care provider works closely with Harrison Medical Center to make sure people get the right type of care. She said they had already seen a decreased use of the ER after implementing extended hours about 10 years ago for the clinic located the closest to Harrison — so often times, it’s about educating patients about resources available to them. “The mantra needs to be, getting the right care in the right setting at the right cost. Rather than the patient making the choice of seeking care at the greatest cost, I’m hopeful patients will begin to identify the role of the primary-care provider as the first door to walk through.” Focus on mental health patients One subgroup that has high ER usage is people with chronic mental illnesses. Even before ER is for Emergencies was implemented, Kitsap health care providers were collaborating on better ways to serve them. “The emergency room is often the first stop for people struggling with mental health issues,” Malich said. “Often times the emergency room becomes a holding place. It’s an appropriate use but not the best care at the right cost, so we’ve looked at how to use community resources to improve that.” Peninsula Community Health Services provides primary care for about 500 Kitsap Mental Health clients and is part of a local collaborative effort that has been in place for several years to maximize those community resources. As one example, early last year, after months of planning, Kitsap Mental Health Services created a partnership with Emergencies, page 14
Petition to label GMO foods left for voters’ decision By Rodika Tollefson Washington voters will likely have a say this fall on whether or not genetically modified foods sold in the state should be labeled as such. I-522, “The People’s Right to Know Genetically Engineered Food Act,” would require foods produced with genetic engineering (or containing GMOs) to carry visible labels, with some exceptions. Secretary of State Kim Wyman certified the petition — one of two petitions to the Legislature this year — in early February. Lawmakers had the choice of passing it as is, sending it to the ballot along with their own alternative so voters could choose one, or taking no action. The Legislature held hearings but chose not to act, which means the next step for supporters is to send the measure to the ballot for a public vote in November. Genetically modified organisms, or GMOs, are seeds, plants, animals, fish as well as micro-organisms whose genetic material, or DNA, has been altered artificially. According to I-522 promoters, five GE crops currently prevalent on the market are corn (86 percent is genetically engineered), soy (93 percent), sugar beets (95 percent), canola (90-95 percent) and cotton. Others include salmon, papaya, yellow squash and alfalfa, which is used for animal feed. The Federal Drug Administration does not require GE foods to have safety studies and does not independently verify the data submitted by food producers. “Our shoppers have been demanding labels for 20 years because of genetically engineered hormones in milk,” said PCC Natural Markets public affairs director Trudy Bialic, a spokesperson for I-522.
“There’s very little research (on GMOs) because of intellectual property laws in this country. Companies are prohibiting access to independent scientists so most research comes from abroad.” That research, conducted largely in Europe, has shown a variety of harm to rats and mice, including significant liver and kidney damage, immune system damage and various ailments. Currently, 63 countries require mandatory labeling, according to the campaign — a number that has grown from 49 countries a year ago, when the petition was originally written. “Because there has been no requirement for safety assessments before the products come on the market, we feel we don’t know the full impacts on humans and the environment,” said Michael Hansen, a senior staff scientist with the Consumers Union (part of Consumer Reports), who has a doctorate in biology and is an evolutionary ecologist specializing in technology and food safety issues. Hansen, who testified in support of I522 at the state legislative hearings in March, said genetic engineering is different from the cross-breed “engineering” farmers used in the old days because it introduces genes from other species — for example, from mice or scorpions into corn. “It can’t be done with conventional methods,” he said. He said one of the major reasons for labeling is consumer health. People who have allergies, for instance, wouldn’t be able to identify the foods they react to since they don’t know whether they’ve been genetically modified. The other reason is people’s desire to know what’s in their food. “It’s of importance to consumers,” he said.
Supporters point out environmental impacts such as the introduction of 325 million pounds of pesticides applied to GE crops in the past 13 years. They also cite economic losses due to nonlabeling (which has happened after recalls of contaminated foods) as well as the potential bans on U.S. exports to countries requiring labeling. “There’s a global agreement that GMOs are different than standard (foods). Our position is that the U.S. should require those global standards,” Hansen said. The initiative would require seed and seed stock suppliers to use the labeling, which in turn would prompt food producers and manufacturers to add labels on their products. Meat and dairy would be an exception (supporters say because they want to use global standards) — but not if the animals themselves (or fish) were genetically engineered. Restaurants, alcoholic beverages and medical foods are also exempt. Currently, close to two dozen states have similar efforts through petitions or bills to require labeling. Last year, California blazed the trail with its Proposition 37, which saw heated debates on both sides. The proposition was defeated, according to supporters, because the opposition — led by pesticide producers and big agricultural groups — outspent proponents 5 to 1. The opponents, which included grocers,
scientists and ethnic-group organizations, said banning “these perfectly safe foods” unless they were labeled would result in significant increases in food prices and is in conflict with science. In Washington state, the effort is endorsed by organic farmers and natural-food stores, restaurateurs, naturopaths and other healthcare providers, farmers markets and others, including from the Kitsap Peninsula. There has been no major opposition effort so far, but that’s likely to change now that the petition has been certified. Already, the Northwest Food Processors Association has issued a statement, saying consumers can already avoid GE foods by buying organic and that this “Washington-only” requirement would prove to be very complex and expensive to consumers. “This initiative, although well-meaning, hurts the small and medium sized food processors in our state,” NFPA President Dave Zepponi said in a statement. “The cost of compliance will be felt by consumers and will disproportionately impact small- to medium-sized businesses in our region, putting local jobs at risk.” That position was echoed by a February editorial in the Seattle Times, which said people should be skeptical of the initiative. But regardless of the outcome in Washington, supporters of GMO labeling feel the momentum will only get bigger. “The issue is not going away,” Hansen said.
Soroptimists’ donation supports Survive & Thrive program for cancer survivors
Exceptional Assisted Living Community • • • •
24 hour On-site Licensed Staff Services Available to Meet Your Care Needs Delicious Meals in our Lovely Dining Room Safety, Security and Peace of Mind
Call us or stop by for a tour today! 360-874-1212 www.staffordcare.com 1761 Pottery Avenue, Port Orchard, WA 98366
PROPERTY FOR SALE OR LEASE Poulsbo CBA509029 Adjacent to new Safeway Supercenter on 10th Ave., approved for 4,790 sf building, this site is available for $249,000 or call for price on turnkey commercial space. Call Kelly Muldrow at 360710-0509 or Joe Michelson at 360-282-5340. COMMERCIAL #413410 $199,000 Downtown Kingston: 1660 sf building with plenty of parking. UVC (Urban Village Center) zoning will allow either residential or commercial use or a combo of both. Ideal For A Live/Work Environment. Excellent Location, Walk To Shops, Restaurants, & Ferry. Mike Draper 360-731-4907. RESIDENTIAL INVESTMENT #452455 & #452202 $360,000 each Central Kitsap: 2 New duplex bldgs. Units 3 Bdrm, 2.5 Bath w/ separate utilities. Gas hot water & forced air furnace. 30 year arch comp roof, covered decks, each w/2 car garage. CK schools. Duplex approved CK Permit #12-02815 (Lot C) & #12-02815 (Lot B). Dino Davis 360-850-8566. Commercial CBA509296 Commercial (For Lease) Class A office space in downtown Bremerton. 6,108 sq ft on 2 levels with high quality improvements, excellent visibility, with lots of parking. Victor Targett, CCIM for details 360-731-5550. Kingston CBA218220 Built out office space in a retail center. Great visibility to Hwy 104. Former Real Estate office. Joe Michelsen 360-692-6102/360-509-4009.
Commercial CBA512042 $1,000,000 Mixed use building in downtown Bremerton. Skip to the Seattle ferry, the Admiral theater, new 10-screen theater, several parks, restaurants, coffee bars. 11 res units, 3 comm. Units +- 51 space parking lot. Victor Targett, CCIM 360-731-5550. Silverdale CBA521353 Very nice, street-level office space with road frontage. Prior uses are dental office and software developer. Very secure entry doors and plenty of parking. Bob Guardino 360-692-6102/360-710-7844. Poulsbo CBA501452 Retail bldg in highly visible location by State Hwy 305. Owner remodeling former auto service bldg into retail use. Space range 1,000 SF-7,200 SF. $15.00/SF/YR NNN. Mark Danielsen 360-692-6102/360-509-1299. Bremerton CBA453848 Commercial lease:2,717 sq.ft. w/street frontage, ground floor retail/office space. $1,560/month incl. Taxes & garbage ($5.90/sf/yr). Kitchenette area.12 off street parking spaces. Tenant pays gas heat & electric. Mark Danielsen 360-692-6102/360-509-1299. Bremerton CBA485909 Excellent 9400 sq.ft. warehouse/distribution center with Hwy 3 visibility, easy access to freeway, office, dock high and PSE energy package. All at very competitive rents. Joe Michelsen 360-692-6102/360-509-4009.
April 2013 Kitsap Peninsula Business Journal • KPBJ.com 13
Soroptimists International of Greater North Kitsap recently presented a second donation check for $ 1,000 to support Peninsula Cancer Center’s Survive and Thrive program. Survive and Thrive is a health and fitness program for women with a history of cancer, with a goal of improved fitness and/or weight loss. The donation will be earmarked to pay for athletic trainers, a nutritionist and life coaches to support women during the healing process from cancer. Soroptimists International of Greater North Kitsap has been sponsoring Bras for a Cause for the past six years and added the Baubles, Boots and Bags event for the first time in November 2012 to raise funds for donations to local service organizations and programs with a mission of helping women and children. Since July 2012, the local service club has donated $18,850 to local beneficiaries. Donations were made to Central Kitsap Food Bank, Habitat for Humanity, NK Fishline, YMCA Alive Shelter, Bainbridge Youth Services, Sharenet, Stand-Up for Kids, Peninsula Cancer Center, North Kitsap Boys and Girls Club, Harrison Medical Center, Hospice of Kitsap County, and West Sound Academy.
The uninsured will need to get coverage by Jan. 1 — or pay fines Expanded Medicaid rules to extend eligibility to thousands
14 • Kitsap Peninsula Business Journal • KPBJ.com April 2013
The 1.1 million Washingtonians who currently don’t have health insurance will be required to get on a plan starting Jan. 1, 2014. Those who don’t (with few exceptions provided by the law) will be fined. The penalty will be collected when taxes are filed the following April. The potential good news for about a third of those residents is that they would qualify for Medicaid, thanks to an expansion of the program. And a big
portion of the rest will qualify for some subsidies as long as they enroll through the state health insurance exchange. According to the Washington State Insurance Commissioner’s Office, the numbers of uninsured Washingtonians will have grown from about 12 percent of the state population in 2004 to an estimated 16 percent by the end of this year. The majority — a total of 805,400 — are expected to qualify either for Medicaid or subsidized plans. In Kitsap County, the state estimates that 82 percent of the uninsured will fall in one of those two categories. (Kitsap has about 33,300 uninsured individuals, or about 13 percent of population, lower than the 16 percent state average.) In a nutshell: • Anyone ages 19-64 not currently eligible for Medicaid can qualify starting in 2014. The income limit is 138 percent of the federal poverty level (or $1,238 per month for one person). • Unlike the current program, the expanded one will not impose a limit on assets and resources and will not be limited to certain categories such as pregnant women, disabled or elderly. • Eligibility will be determined based on modified adjusted gross income, or MAGI (the total of adjusted gross income and tax-exempt interest, as calculated by the IRS on lines 37 and 8B on Form 1040). • The income will will be based on “point in time” income; in other words, it will be based on the month when the person applies. • IRS household composition rules will apply, but there would still be multi-
program households and existing Medicaid clients will be converted to the MAGI formula. • The program will be named Washington Apple Health (based on the existing Apple Health for Kids; children currently enrolled in Apple Health will be converted to the MAGI formula as well during their next 12-month eligibility review). • The enrollment process will be simplified, with individuals being able to enroll either for Medicaid or subsidized plans through Healthplanfinder, the state’s new health care marketplace. Currently, cases are put on hold pending income verification for new and renewing applications. Starting Jan. 1, an automated system will be used to find income verification matching data and
enrollees will be able to do a “selfattestation” of income. Some exceptions for the mandated health insurance include people who are incarcerated, religious objectors, undocumented immigrants, Indian tribe members or those in between jobs and with no insurance for up to three months. For most everyone else, the 2014 penalty will be $95 per adult and $47.50 per child up to a family maximum of $285, or 1 percent of income (whichever is greater). In 2015, those numbers kick up to $325/$162.50/$975 respectively, or 2 percent of income; and in 2016, they will climb to $695/$347.50/$2,085 or 2.5 percent. For more information about the expanded Medicaid program, go to www.hca.wa.gov/hcr/me. For details about the health care law, go to www.healthcare.gov.
EMERGENCIES
coming to him instead of the emergency room, and convenience is a major benefit since those patients already have to come to Kitsap Mental Health. “I think we’re trying to feel our way through it. From the feedback we’re getting and the numbers that are cited, I think we’re going in the right direction,” he said. “I think it’s the right way to do it.” Universal trend Although the state initiative is only targeting Medicaid patients, health care professionals see the potential of this approach becoming universal. Especially once the Health Care Act is in effect next year. An estimated 9.8 million Americans have lost employer-provided health insurance since 2008, which means growing pressure on government-subsidized plans. “The health care system is truly a system,” Malich said. “We want the resources in our community to be utilized appropriately.” Moore said many of the same ideas behind ER is for Emergencies are being applied to all patients and it may be only a matter of time before private insurance carriers and Medicare come up with similar requirements. Kurt Schley, president of St. Anthony Hospital, agrees that it would be a positive change. He said the benefits include better coordination by eliminating duplication of tests and procedures (some of which, like CT scans, may have harmful effects in the long term). But there’s also an overarching benefit to society as health care resources become more taxed. “We are spending 19 percent of our GDP on health care. In 1987, it was 8 percent,” he said. “Are we going to see more scrutiny? Absolutely. Our health care system is in total evolution over the next five to 10 years. It will change everything in this country.”
from page 12 Harrison Health Partners (part of Harrison Medical Center) to bring primary care where mental health patients are most comfortable, at KMHS. Dr. Hector Reyes, whose practice is located at Harrison’s Port Orchard clinic, sees patients at KMHS once a week. “There are other clinics and primarycare providers serving people that are underserved,” Reyes said. “We brought the primary care closer to the point of service …because Kitsap Mental Health has a population that is unique and has unique needs.” He said he is seeing more patients now
Medical cannabis community wants to remain apart Advocates hope implementation of I-502 won’t impact medicinal marijuana patients, dispensaries
“The reduced psychoactivity of CBD-rich Cannabis may make it an appealing treatment option for patients seeking anti-inflammatory, anti-pain, anti-anxiety and/or anti-spasm effects without disconcerting euphoria or lethargy.”
Tim Kelly photos
At the Herbal Healing dispensary in Gorst, medical marijuana is available to patients in plant form (photo above left) and as various topical and edible forms in the display case above. Simpson oil,” named for a Canadian activist who developed a high-quality hemp oil touted as a cure for cancer and other diseases. Simpson reportedly has provided treatment for free to thousands of patients,
and do-it-yourself directions for making the oil are available online. The woman speaking at the forum also Marijuana, page 17
— Project CBD website about a year and a half ago. “I did not want to take that stuff anymore, and I don’t like to be high, either,” he said. “That’s kind of a dilemma you might think, but we carry meds that have high CBD without the high THC.” “We’re one of the few collectives that actually test their meds,” Doc added. That testing is done by Cannatest, a mobile service operated by Klaas Esselink of Bainbridge Island. A relatively simple procedure called High Performance Thin Layer Chromatography produces a visual profile of the levels of THC, CBD and other cannabinoids in a cannabis sample. According to the website of Project CBD, a nonprofit educational service that promotes and publicizes research into the medical benefits of cannabidiol: “The reduced psychoactivity of CBD-rich Cannabis may make it an appealing treatment option for patients seeking antiinflammatory, anti-pain, anti-anxiety and/or anti-spasm effects without disconcerting euphoria or lethargy.” A woman from Seattle who spoke at last month’s forum in Bremerton urged the Liquor Control Board to adopt rules that license growers who produce high-CBD plants used in “cannabis topicals” — painrelieving ointments and lotions used by a growing number of patients. “These are amazing homeopathic products,” she said. One of the most heralded medications among cannabis advocates is “Rick
April 2013 Kitsap Peninsula Business Journal • KPBJ.com 15
By Tim Kelly, Editor As Washington state figures out how to regulate production and retail sales of legalized marijuana along the lines of the former state-run system of liquor stores, providers and patients in the medical marijuana community prefer to remain insulated from I-502’s rules, licenses and taxes. “I just want the ability that patients can still grow their own meds,” says a 50-yearold known as “Doc” at the Herbal Healing dispensary he helps operate in Gorst. Voter-approved Initiative 502 does not change that. Sharon Foster, chair of the state Liquor Control Board that will regulate legalized marijuana, made clear at the start of a recent forum in Bremerton on implementation of I-502 that the measure does not give the LCB “any jurisdiction over medical marijuana at all.” Patients who have medical authorization to use marijuana are allowed under state law to grow their own cannabis plants or have a designated provider do so. They also are legally allowed to participate in collective gardens, which grow cannabis for a group of patients who share production costs. Medicinal marijuana dispensaries are technically illegal since current state law only allows collective gardens, but numerous dispensaries operate in Kitsap County and elsewhere without interference from state or local authorities. The differences between medicinal and recreational use of marijuana might be surprising to anyone unfamiliar with the chemical makeup of the cannabis herb. THC is the chemical component that produces the high, but a compound called cannabidiol (CBD) provides other pharmacological effects that can help people with cancer, AIDS, arthritis or other chronic-pain afflictions. The potency of cannabis varieties can be modified through plant breeding to yield lower levels of THC and higher concentrations of desired CBD. Also, higher levels of CBD have been found to reduce the psychoactive effects of THC. Smoking pot often conjures stereotypes of stoners, but a lot of medical marijuana patients loathe smoking and are seeking only pain relief, not a drug-induced high, when they ingest cannabis in other forms such as edibles, tinctures or topical oils. “As a medical cannabis patient who sometimes needs medication during the day, I want low THC; I don’t want to get stoned,” Ezra Eickmeyer said during an interview at Blue Horizon Medical, the naturopathic clinic he operates in Silverdale. The Herbal Healing volunteer, Doc, holds a similar view. He said a physician had prescribed the muscle relaxant Flexeril and morphine to treat his severe back pain before he began using medical cannabis
Presentation will discuss latest tools and trends in healthcare technology
16 • Kitsap Peninsula Business Journal • KPBJ.com April 2013
The West Sound Technology Association will feature presentations from leaders in the local medical community at an April 18 meeting on Healthcare Technology Tools and Trends. This meeting was rescheduled from its previous date of Feb. 21. According to Dr. James Canton of Institute for Global Futures, the healthcare industry is undergoing significant shifts that will revolutionize how we are treated, encourage greater patient engagement, and lead to improved health outcomes. Some projections include: • Telehealth services to underserved communities; • New generation smart drugs, medical devices; • Virtual reality simulations as a dominant method of training medical professionals; • Customized cyber healthcare that better monitors, diagnoses, educates and treats; • Nonhuman medicalbots to dispense medical care to patients and doctors worldwide to save money and share expertise;
implemented ground-breaking tools — including robotics. Those who attend this presentation will hear more about technology tools and trends that will directly impact patient care. Presenters include Dr. Charles Ho, Director of Pharmacy at Harrison Medical Center; HM2 Blake Hite, Simulation Center Program Manager at Naval Hospital Bremerton; and Jeff Goddard and Brennan Dobbins from The Doctors Clinic.
The meeting will be from 5:30-7:30 p.m. (with networking and refreshments from 5:30-6) in the meeting room at The Doctors Clinic, 2011 NW Myhre Road in Silverdale. The event is free for WSTA members and $10 for future members and supporters. Online registration and more information is available at westsoundtechnology.org.
Permanent prescription drug take-back program set up in Kitsap County
• Connecting most medical facilities, physicians, and patients to one large network, providing access to critical medical information. In our region, Harrison Medical Center, Naval Hospital Bremerton and The Doctors Clinic already have explored and
A Leadership Kitsap team, working in partnership with the Kitsap County Sheriff’s Office, has developed a permanent drug disposal program for unused prescription medications. Permanent receptacles for disposing of unused medications will soon be installed in the lobbies of sheriff’s offices in Central and South Kitsap. Previously, drug take-back events were conducted under the auspices of the Federal Drug Enforcement Administration on a designated weekend day, usually twice per year. This initiative will permit county
residents to dispose of prescription medications on any weekday during sheriff’s office business hours. A kick-off event was held recently at Olympic College in Bremerton to highlight the drug takeback program, and to address the devastating impacts of prescription pain drug abuse and the environmental impacts of improperly disposed medications. Receptacles for disposal of unused prescription medications will be at Kitsap County Sheriff’s Office locations: Prescriptions, page 17
Kitsap Foot & Ankle Clinic
Dr. David Gent, DPM
Dr. Andrew Hune, DPM Dr. Kirsten Grau, DPM
Dr. David Gent, DPM
Kitsap Foot & Ankle Clinic’s philosophy is believing that a doctor and patient become a team for treating an individual’s feet. Our physicians spend most of their time listening to understand your concerns and responding with the best treatment options. With the help of our professional staff, they also follow-up to make sure that pain is relieved, problems are resolved and your health improves. Our clinic serves all ages. The doctors are experts in Podiatric care for any foot and ankle concerns.
Dr. Kirsten Grau, DPM
Benedictine Hospital – New York Yale University – Connecticut Trained in forefoot, rear-foot and Trained in forefoot, rear-foot and ankle surgery. Board Certified by ankle surgery. Interest in the American Board of Lower reconstructive surgery. Associate Extremity Surgery. Board Certified Member of the American College of Foot & Ankle Surgeons. in Podiatric Medicine & Surgery. Fellow of the American College of Foot & Ankle Surgeons. New Patients Welcome • Same International lecturer.
Dr. Andrew Hune, DPM Benedictine Hospital – New York Trained in forefoot, rear-foot and ankle surgery. Interest in wound care and limb salvage. Associate Member of the American College of Foot & Ankle Surgeons.
Day Appointments Available Early & Late Appointments • Most Insurances Accepted
Kitsap Foot & Ankle Clinic (360) 377-2233 • www.kitsapfootandankle.net 900 Sheridan Road, Suite 101 Bremerton Future offices coming to Poulsbo & Port Orchard!
MARIJUANA from page 15
said that growers and producers of medicaloriented cannabis and derivative medications should also be allowed to get retail licenses and should be exempt from the “sin tax” of 25 percent required by I-502. As written, the initiative allows a person or business to be licensed as a grower and/or a processor, but not also as a retailer. At the Blue Horizon clinic in Silverdale, the naturopathic physicians write a lot of medical marijuana authorizations, but Eickmeyer — who’s a lobbyist, not a doctor — said it’s done within the broader context of “using natural treatments as the first line of care” for patients. He said the clinic evaluates all patients to make sure their needs for medicinal marijuana are legitimate. “Everyone gets at least a half-hour primary care visit with a doctor,” he said, and patients get marijuana cards only when “cannabis is an appropriate part of a holistic treatment plan.” He added that the patients who get medical marijuana authorizations include “a lot of people who come back for primary care.” Eickmeyer, who’s the son of former state legislator Bill Eickmeyer of Belfair, opened Blue Horizon last year and also is the political director for the Washington Alternative Medicine Alliance. “I have a genuine lifelong interest in natural medicine,” he said. He
PRESCRIPTIONS
from page 16 • 3951 Randall Way NW in Silverdale; lobby hours 9 a.m. to noon and 1–4:30 p.m. weekdays; • 614 Division St. in Port Orchard; lobby hours: 9 a.m. to 4:30 p.m. weekdays. The prescription drug disposal, or take-
“As a medical cannabis patient who sometimes needs medication during the day, I want low THC; I don’t want to get stoned.” — Ezra Eickmeyer
Tim Kelly photo
Ezra Eickmeyer opened Blue Horizon Medical, a naturopathic clinic, last year in Silverdale. As political director of the Washington Alternative Medicine Alliance, Eickmeyer is an advocate for medicinal marijuana use as part of natural treatments for patients. experimented with marijuana as a teenager, and likes to say that “For me, marijuana was a gateway drug to natural medicine.” As medicine, high-CBD cannabis is “far superior to many pharmaceuticals that people can take for chronic pain,” Eickmeyer said. Project CBD lists numerous medical conditions for which treatment with cannabidiol can be beneficial: “Scientific back program, has been an ongoing, collaborative effort for several years, engaged in community outreach and education. This education initiative is the result of continuing efforts led by Kitsap Public Health District, Peninsula Community Health Services, and Count on Kitsap to Reduce Substance Abuse Coalition.
At Olympic Fitness 2 FREE RPM & Pilates classes, too! When signing up for 4 month special
Single – $165 Couple – $250 Student/Senior – $140 Senior Couple – $195
*Expiration at end of term Limited amenities/services at Olympic Fitness Pro Call Olympic Fitness Pro at 895-3450 for their special(s)
Fully Equipped Fitness Facilities : *
Group exercise classes • Full Gym • Two racquetball courts Fully equipped weight floor & cardio theater Wellness center offering yoga
Specialty Services : *
Our sister club
•Massage Therapy •Spa Services • Personal Training
895-3450
871-3433 Serving Kitsap County for 26 years!
www.olyfitness.com
4459 Mile Hill Dr. Port Orchard Gym Hours: Mon - Fri 5am-10pm Sat 7am-7pm • Sun 8am-5pm
April 2013 Kitsap Peninsula Business Journal • KPBJ.com 17
4 Month Special*
1476 Olney Ave. SE, Ste 101 Port Orchard Gym Hours: NOW OPEN 24 HOURS!
and clinical studies indicate that CBD could be effective in easing symptoms of a wide range of difficult-to-control conditions, including: rheumatoid arthritis, diabetes, alcoholism, PTSD, epilepsy, antibiotic-resistant infections and neurological disorders. CBD has demonstrated neuroprotective effects, and its anti-cancer potential is currently being explored at several academic research
centers in the U.S. and other countries.” Recommendation of marijuana for pain relief seems to be gaining more acceptance among conventional medical providers as well, particularly for cancer patients. At the busy Herbal Healing dispensary, “We’re getting referrals from Harrison (Medical Center) now, and from doctors in Gig Harbor,” Doc said. Eickmeyer doesn’t just think the federal Drug Enforcement Administration should reclassify cannabis, currently a Schedule 1 controlled substance that DEA says has “no currently accepted medical use.” His view is cannabis should not even be listed as a controlled substance. He related a story about a woman who was virtually incapacitated by all the pain medications she needed to take. She began using medical marijuana and her condition turned around significantly, and she no longer needed all the meds she’d been taking that produced debilitating side effects. “That’s how significant this herb is; it gave her her life back,” Eickmeyer said. “That’s not an uncommon story.”
Enjoy your soundscape this spring By Megan Nightingale This spring when you go outdoors to enjoy the long-awaited colors and blooms, don’t forget the sounds of the season in your lovely garden or wood. Who doesn’t smile when the hummingbird hums its way to the feeder? For me personally, my spring starts when I finally hear the haunting song of the Swainson’s thrush in the trees around our house. When people think of spring, landscapes usually come to mind — but hearing the soundscape is equally as important for a sense of wellbeing. Awareness of the sounds around us outdoors was once needed for our very survival. While this may not be as important as it once was, hearing the world around us well allows us to safely navigate our surroundings. Our awareness of the sounds also gives us pleasure and connects us with the larger world. The shrinking awareness of the soundscape that happens when our hearing range is reduced may not seem so important.
However, when the sound of an interesting bird or animal comes and goes and we have missed it, we do not get a second chance. Recent research into the impacts of a reduced hearing range points to increased isolation and paranoia about the world around us. Helen Keller was famous for saying that of the two disabilities, blindness and deafness, deafness was far worse, as sight connects us to things, but hearing connects us to people. How do we know if our hearing range is reduced? We cannot, which is why it is so important to have our hearing checked routinely throughout life. Routine hearing checks will allow us to catch changes in our hearing before other people do. If a hearing professional finds a reduction in our range of hearing, hearing technology can be
personalized to fit individual needs and preferences so we don’t miss a thing. Today’s hearing solutions are so small that no one will know we have them on, much like people who need to see better wear contact lenses. So don’t miss out on your lovely soundscape this spring, have your hearing checked! • Megan Nightingale owns Peninsula Hearing in Poulsbo.
Obituary — John Ray Bjorndahl John Ray Bjorndahl, 69, of Keyport died Feb. 26. He was born July 20, 1943, in Aberdeen, Wash., and was adopted by Ray and Evelyn Bjorndahl. He graduated from Montesano High School, then served in the Navy from 1961-65 and was later transferred to the Naval Reserves until being honorably discharged in 1967. He was stationed at the Bremerton Naval Hospital as a corpsman and served with the Marine Corps in Vietnam. He earned the Vietnam Service Medal and National Defense Service Medal. He went on to attend Grays Harbor College, and worked as a commercial loan analyst and loan review specialist, retiring after 40 years in this field. He was a member of the Poulsbo Kiwanis and the Lions Club of Alaska, and he enjoyed photography, hiking and traveling. Survivors include three sons, Mike Campbell of Eureka, Calif., Eric Bjorndahl of Brighton, Mich., and John Bjorndahl Jr. of Bothell; three stepsons, David Lindquist of Poulsbo, Mike Lindquist of Bremerton, and Matt Lindquist of Everett; and eight grandchildren.
A celebration of life service was held March 9 at Gateway Fellowship in Poulsbo. Memorial donations can be made to Gateway Fellowship Global Missions, 18901 Eighth Ave. NE, Poulsbo WA 98370. An online memorial can be seen at www.lewischapel.com.
18 • Kitsap Peninsula Business Journal • KPBJ.com April 2013
Make this your spring to see and hear the joys of your garden You don’t have to let hearing problems interfere with your life anymore. Call Peninsula Hearing today to experience the latest in personalized hearing solutions. We excel in helping people reconnect with their lives!
April 2013 Edition
Events And Activities VISIT the NEW HBA Website! www.kitsaphba.com Online Registrations! Wednesday, April 3, 4 p.m. Kitsap HBA Remodelers Council Thursday, April 4, 7:30 a.m. Developers Council Mtg. Wednesday, April 10, 11:00 a.m. ABC’s of Claims Mngmt. Required Course for new ROII Select® Participants Register w/ BIAW Thursday, April 18, 5 p.m. HBA Annual Spring FLING! Arena Sports Bar — E. Bremerton RSVP to HBA preferred Thursday, April 25 Executive Cmt. Mtg., 2 p.m. Gov. Aff. Cmt. Mtg., 2:30 p.m. Board of Directors Mtg,, 3:30 p.m. MAY! Mark your calendar! Friday, May 17, 2013 Affordable Housing Council Annual Auction & HBA Dinner Please RSVP to HBA Please donate high quality new items Please consider a sponsorship VISIT the NEW HBA Website! www.kitsaphba.com Online Event Registrations!
A MUST HAVE for all of Kitsap’s Contractors New Guide Helps Builders Navigate 2012 Residential Code A new guide co-published by the National Association of Home Builders (NAHB) and the International Code Council (ICC) provides critical answers to the most frequently asked residential construction jobsite code questions. This guide is available through BuilderBooks, NAHB’s publishing arm. The 2012 Home Builders’ Jobsite Codes: A Quick Guide to the 2012 International Residential Code, is a portable guide for home builders, contractors, inspectors, architects, engineers and other construction professionals. The convenient field guide is a quick reference to the 2012 International Residential Code (IRC) and provides easy-to-read code requirements for every aspect of residential construction. The 2012 Home Builders’ Jobsite Code discusses the impact of 2012 code changes to ventilation requirements, wall construction, duct sealing and other areas. It also details new fire safety and hurricane protection measures and discusses topics such as: • blower door tests • whole-house mechanical ventilation • fire protection of floors • wall bracing methods • roof construction • hot water piping • high-efficiency lighting • gray water recycling Written by Stephen A. Van Note, the guide features more than 100 illustrations, tables and figures to help the reader understand specific code requirements, as well as a glossary that provides definitions of construction-related terms. A certified building official and plans examiner, Van Note has more than 15 years of experience in code administration and enforcement and more than 20 years of experience in the construction field, including project planning and management for residential, commercial and industrial buildings. 2012 Home Builders’ Jobsite Codes is meant to be of practical use on the jobsite, not as a substitute for the complete codes. To purchase the new 2012 Home Builders’ Jobsite Codes: A Quick Guide to the 2012 International Residential Code, please visit BuilderBooks.com or call 1-800-223-2665. (ISBN 978-086718-696-3; Retail $21.95/NAHB Member $19.95). The Guide is also available as an e-Book at ebooks.builderbooks.com (Retail $14.99/NAHB Member $12.99).
2013 OFFICERS President . . . . . . . . . . . . . . . . . . . . Robert Baglio First Vice President . . . . . . Judy Mentor Eagleson Second Vice President . . . . . . . . . . . . . . John Leage Treasurer . . . . . . . . . . . . . . Randy Biegenwald Secretary . . . . . . . . . . . . . . Dee Coppola, CGA Immediate Past Pres. . . . Wayne Keffer, CGR, CAPS
2013 BUILDER & ASSOC. DIRECTORS Karla Cook • Judy Granlee-Gates Joe Hurtt • David Godbolt, CAPS, CGP, CGB, CGR Berni Kenworthy • Miriam Villiard Kevin Ryan • Leslie Peterson, CGA Shawnee Spencer • Jim Way, CGB
2013 STATE DIRECTORS Robert Baglio • Kevin Hancock Lary Coppola • Judy Mentor Eagleson Justin Ingalls, RCS • Wayne Keffer, CGR, CAPS John Leage • Ron Perkerewicz
2013 ALTERNATE STATE DIRECTOR John Armstrong • Walter Galitzki Brent Marmon • Greg Livdahl • Jim Heins
LIFE STATE DIRECTORS Bill Parnell
2013 NATIONAL DIRECTORS Robert Baglio • John Leage
2013 ALTERNATE NATNL. DIRECTORS Michael Brown • Jeff Coombe
LIFE DIRECTORS Rick Courson • Jim Smalley • Bob Helm Bill Parnell • Larry Ward John Schufreider • Dori Shobert
2013 COUNCIL & CHAIRS Build a Better Christmas. . . Randy Biegenwald Built Green . . . . . . . . . . . . . . . . Walter Galitzki By Laws & Nominations . . Wayne Keffer, CGR, CAPS Developers Council. . . . . . . . . Berni Kenworthy Golf Classic . . . . . . . . . . . . . Shawnee Spencer Govt. Affairs Cmte . . . Judy Mentor Eagleson Remodelers Ccl Chair . . . . . . . Walter Galitzki Membership . . . . . . . . . . . . . . . . . . John Leage Parade of Homes . . . . . . . . . . . . . Dee Coppola Peninsula H&G Expo. . . . . . . . . . Ardi Villiard Peninsula H&R Expo . . . . . . . . . Dee Coppola
HBA STAFF Executive Vice President . . . Teresa Osinski, CGP tosinski@kitsaphba.com Events and Administrative Assistant . . . Katie Revis hbaevents@kitsaphba.com Administrative Coordinator. . . Kathleen Brosnan info@KitsapHBA.com
Home Builders Association of Kitsap County 5251 Auto Center Way, Bremerton, WA 98312 360-479-5778 • 800-200-5778 FAX 360-479-0313 www.KitsapHBA.com
THE 2013 FORD F-SERIES TRUCKS MORE POWERFUL, CAPABLE & ADVANCED.
PORT ORCHARD FORD
1215 Bay Street, Port Orchard, WA 98366 • 360-876-4484
brucetitus.com
April 2013 Edition
Legislative Watch — What is the Legislature Doing this Session? Robert As Mark Twain said (1866), Baglio “No man’s life, liberty, or property is safe while the The BJC Group legislature is in session.” 2013 President Well there may be some truth to that statement. This legislative session is not much different from any other. There are some good bills and some bad bills, but rest assured our friends at BIAW are looking after the interest of the construction industry. They are monitoring a few bills to see where they stand and they are debating their merits pro and con depending on the bill. A few key bills they are watching include: Impact Fee Deferral (ESHB 1652), Six year Building Code Cycle (ESB 5378), and Construction Services Payment (HB 1473). Information on these bills is provided below. Impact Fee Deferral (ESHB 1652) Most municipalities require impacts fees to be paid at the time of building permit issuance. BIAW is supporting a bill that would delay the collection of impact fees until the time of closing or owner occupancy. This allows the builder to complete construction without having to finance the impacts fees and pay interest on the borrowed money used to pay the impact fees. BIAW is in favor of the Impact fee Deferral. Six Year Building Code Cycle (ESB 5378) Currently the State Building Code Council reviews and updates the building codes every three years. No sooner do you just get used to the new code and have the important sections dogeared in your code book when a new code cycle starts and you have to become familiar with the new code revisions. Not to mention, since the last code cycle in 2009, there has not been much construction, so the full ramifications and effectiveness of the 2009 code revisions are really difficult to determine. This is especially true of the 2009 Washington State Energy code, which contained some very significant code changes. Another factor to consider is the cost to municipalities to purchase all the latest manuals. I understand this cost to be just over $8,000.00. And from a pure practical point of view, when you think about it, we have been updated building codes for well over 50 years is there really that much that has changed in the last three years that warrants an entire series of code revisions. I think a 6 year cycle is more than adequate. BIAW is in favor of switching to a 6 year code review cycle. Construction Services Payment (HB 1473) This bill requires an entity that pays $600 or more for construction services to report the payment and other information to the Department of Labor and Industries, and provide penalties for failing to report. The report must be made by January 31 following the taxable year in which the payment was made. The report must include: (1) the entity’s name, address, and UBI; (2) the construction service provider’s name, address, and UBI; (3) the total amount paid to the construction service provider in the taxable year, including payments for services and any materials and equipment; and (4) any other information the Department requires by rule. Now this is truly amazing. As a contractor, how many different companies do you obtain construction related services for in excess of $600.00? Can you imagine filing a separate report for every single one of these companies and itemizing the materials and equipment they use to perform the construction related services? This is a paperwork nightmare. What do they think they are achieving with this bill? This is certainly not a business friendly bill. BIAW does not support this bill.
As the Executive Vice President of the HBA I have the honor of participating in many important initiatives, events, CGP and processes around Kitsap County that are crucial to our Executive association and the members it Vice President represents. Almost all of the work of the association benefits the entire industry, whether the individual companies are members or not. Of course we’d like all the companies affected by our local construction industry, or in the construction industry, to make the commitment and join the HBA. The HBA Board of Directors, our Officers and many members reach out to companies on a regular basis and talk about why membership is important. Even after so many years of a down construction economy, the HBA remains strong, well respected, and active throughout Kitsap. For some businesses the reason to join remains unclear to them and they want to know more specifically, “what’s in it for them.” It’s a fair question. Membership in the HBA is multifaceted. Overall, membership helps the industry as a whole and that can be hard to measure. Some examples are our ability to affect the outcome of legislation at the local level, state, and national. In the most recent years, we have actively worked to affect proposals about stormwater, shoreline regulations, fireflow, and fire sprinklers. In each case, we were able to improve for the industry what was originally slated to be very damaging. At the state level, BIAW’s staff and paid lobbyists effectively work to keep ROII available, educated legislators on the dangers of dozens of poorly conceived workers compensation bills as well as bills about small business taxation/reporting, and many others. Additionally, they are able to promote good legislation like plat extensions and code update cycles. Nationally, through NAHB your industry is well represented on issues related to the mortgage interest deduction, health care, and lending just to name a few. A specific example of NAHB’s influence can be found in the Federal Affordable Health Care Act. When being debated, it was found that all construction firms (down to the very smallest) were going to have to provide health insurance to employees even though other industries would be exempt if they had fewer then 50 employees. NAHB found that issue, addressed that issue, and saved the industry from what would have been a devastating expense to our small business owners. Most HBA member companies do not have the time, staff, or resources to track the issues, trends, and impacts. Your membership helps to cover an area of technical importance for you while you keep working to pay your employees and feed your family. Through the membership support of the companies in Kitsap County the whole industry is represented at all levels of government. Annual dues are just $475 and that investment you access to education and resources here, as well as at the state and national association. Take some time to evaluate how other organizations you invest in are doing at representing your company’s needs. For just a $1.30 per day your investment will be working to help the industry and protect your livelihood. There are many additional benefits for members that put money back in your ledger (ROII, BIAW Rebate, Verizon Wireless, LOWES for Pros) etc. Please talk to an HBA member to find out more or call me here at the HBA anytime. We look forward to your membership and support.
Teresa Osinski
April 2013 Edition
Government Affairs Committee
Back at the puzzle... This time I was working our puzzle with my kids, and the Judy Mentor Eagleson topic of Unemployment Mentor Company Compensation came up. I was asked if a friend of ours was 2013 Chair on unemployment. I was quite surprised by the question and said of course not. I explained that when that person’s job ended they decided to take some time off before looking for a new job. My child replied, “But they paid into the system while they were working and so should be collecting unemployment right?” This began a long conversation about unemployment compensation and its purpose. Unemployment compensation was designed as a safety net for those who lost their job, due to no fault of their own, to help them make ends meet while actively trying to find a new job. It is to help pay the mortgage and feed the family while the worker tries to find employment. It was not designed as a paycheck for those wanting to take some time off. With sequestration becoming a reality, I started thinking about unemployment compensation again. Why are we laying off people in one government agency only to pay them through another government agency? While there are always some that “work the system” and enjoy receiving unemployment benefits I would venture to guess that the majority of those on unemployment would rather be working. At the same time we hear daily about government jobs that are going unfilled because of budget shortfalls — not because there is not work to be done. So why are we paying qualified workers to stay home? What about creating a system where if you lose your job, through no fault of your own, you receive unemployment compensation but you are asked for something in return? Each government agency would be given a certain number of hours of unemployment worker credits and each person on unemployment would be required to fill a certain number of those hours based on the compensation they are receiving. I ran this by a friend who works for the government and he said “great idea but the Unions would never go for it.” Well, not all government positions are Union. But if it doesn’t work within the government framework what about the same concept but through non-profit organizations where Unions are not involved and there is plenty of work to be done? Those receiving Unemployment Compensation, if able, would be required to donate a certain number of hours to the non-profit of their choice be it the Red Cross, Salvation Army, Foodline, YWCA, - the list goes on and on. Giving back to the community, through community service, would give the worker a sense of pride and worth, would keep that person engaged in the workforce and keep their skills honed. Our non-profits can certainly use the help. Unemployment compensation, like other government programs began with great and necessary goals but has fallen from its original purpose. How can these programs be restructured or adjusted to adhere to their lofty goals in today’s economy and climate? This is one thought.
24 hour emergency clean-up
Think you pay too much to WA Labor & Industries?
Unemployment Compensation
ACTION
O T ff In he eri Se Be ng rv st ic e
The BIAW ROII Select® annual enrollment process is underway right now! Safe companies can be rewarded with a return on the premiums they pay, in exchange for implementing required practices, maintaining a safe record, and when the overall risk pool remains positive. The only way any company can get any refund from L&I is through participation in an industrial insurance risk pool. The BIAW ROII Select® is one of the oldest and largest such pools in Washington with an excellent track record. Call BIAW or the HBA today to find out how to begin the process. All companies in the construction trades should find out more. Deadline is approaching fast.
Annual AHC Auction and HBA Dinner! SAVE THIS DATE: May 17th! HBA Friends and Members: Please mark your calendar for the annual HBA dinner and AHC auction to support the political activity of the association. This annual event is always a lot of crazy fun and this year looks to be the same. Your Chair, Judy Mentor Eagleson has selected a “western theme” and the Kitsap Golf & Country Club ballroom will be transformed into an old west saloon. Be on the lookout for card sharks, gun slingers, dancing girls and other surprises. Dinner is $45.00 per person, or buy a VIP table (limited number available) for just $550 - seating for 8. As always we are looking for high quality donations for silent auction, raffles, and live auction. Sponsors are welcome as are cash donations. Please mark your calendar for May 17, 2013 and RSVP to the HBA today!
Hand-Selected Granite from Brazil Directly Imported for You! After our trip to Brazil, containers of granite are arriving at our showroom in Poulsbo. Discover a vast array of tile selections, slab granite and quartz, stone samples and custom countertops.
SERVICES CORPORATION
Maintenance
Landscape Maintenance
• Minor plumbing, electrical and carpentry • Minor roof repair and painting
Janitorial • Daily, weekly, monthly rates • Construction clean-up • Window and wall washing • Carpet shampooing • Floor stripping and waxing
• All phases offered
Tired of the surfaces in your home? Time to “GET CREATIVE!”
Power Parking Lot Services • Parking lot sweeping • Parking lot washing • Parking lot striping • Snow removal
FREE ESTIMATES
373-4265 Commercial • Medical • Executive
We carry the industry’s top manufaturers:
360-598-3106 • 206-714-2948 22285 Stottlemeyer Road • Poulsbo (Next to Bond Rd. & Gunderson Rd.)
www.creativecounters.com Bonded & Insured License #CREATCI964BB
April 2013 Edition
Welcome New Members Team Innovative Services, LLC Kenneth Perry PO Box 885 Silverdale, WA 98383 (360) 697-6858 info@getinnovative.net And the SPIKE goes to... Randy Biegenwald Randy Biegenwald CPA
NEW Affiliate Member Nicholson Drilling, Inc Jim Wiley 7074 Bethel-Burley Rd Port Orchard, WA98367 (360) 876-4421 Jwiley5000@msn.com And the SPIKE goes to... Justin Ingalls Kitsap Trident Homes
Express Employment Professionals Ronnie Byrd 4545 Auto Center Way Bremerton, WA 98312 (360) 479-4756 Ronnie.byrd@expresspros.com And the SPIKE goes to... Judy Mentor Eagleson Mentor Company
Thank You Renewing Members 10 Years Sound Plumbing Dana’s Heating Inc. InEx Finish LLC
46 Years Cascade Natural Gas 31 Years Heritage Fireplace Shop Over 20 Years Northwest Cascade Inc./Honey Bucket (24) Wet Apple Media (24) Kitsap Sun 20 Years BJ Builders Over 10 Years Kitsap Garage Door Co. (16) Paul Ogilvie Construction (13) Sentinel Construction and Consulting Inc. Kitsap Newspaper Group
Over 5 Years Legacy Telecommunications Over 1 Year Servpro of Kitsap County A Better Crawl Inc. Knox Design 1 YEAR Anniversary Economy Air Temp Inc Express Septic Service Sound Custom Siding PHC Construction LLC Lakeside Industries Inc.
Daily E-mail Updates It’s FREE for everyone! Even if you’re not a Business Journal Subscriber
It’s easy to sign up! Oldest Shredding Company in Washington On-Site & Off-Site Paper Shredding Service Certificate of Destruction Provided 100% Recycling Program for All Shredded Material – Nothing goes to the Landfill
American Data Guard NAID AAA Certified Destruction Company
206-285-5955 • 800-699-6610 www.adgshred.com
Licensed, Bonded and Insured
Just visit daily.kpbj.com and sign-up for our emailer to start receiving breaking area news stories right in your inbox. For more information call (360) 876-7900.
Partners In Success Announcing Our Newest Escrow Team! Jane Stafford (Escrow Officer/LPO) and Patti Schenfeld (Escrow Closer) each brings with them over 30+ years of experience in the title and escrow industry. Their knowledge in all facets of a transaction have created many happy customers and loyal clients. They strive for excellence in all that they do — together they make a winning combination!
Providing superior customer service and professionalism to every real estate transaction. SILVERDALE OFFICE 360-692-4141 • 800-464-2823 2021 NW Myhre Road, Suite 300 Silverdale, WA 98383
BAINBRIDGE ISLAND OFFICE 206-842-2082 • 800-884-7636 921 NE Hildebrand, Suite 200 Bainbridge Island, WA 98110
PORT ORCHARD OFFICE Tim Kelly photo
New building will fill gap on Front Street
www.pnwtkitsap.com
A crew from Skelley Works does excavation recently at the site on Front Street in Poulsbo where a building was removed. The building that was torn down most recently housed Voodiez, a restaurant that closed last May, and was occupied by numerous restaurants and bars in the past. Choice Construction of Gig Harbor is the contractor for building a two-story replacement structure that will house multiple retail tenants, according to plans filed with the city, although the new businesses have not yet been identified. The property, which is between the Closet Transfer consignment store and Tizleys Europub, is owned by Blue Bay Holdings LLC of Silverdale. The principals in Blue Bay Holdings are Erika and Jim Cecil, owners of Boomer’s Pet Boutique located nearby on Front Street.
The Suquamish Tribe has elected two new members to serve on the Suquamish Tribal Council. Long-time tribal employee Wayne George, 58, was elected to the position of vice chairman. He is a lifetime resident of Suquamish and a former council member. The tribal membership also elected council newcomer Robin Sigo to the position of treasurer. Sigo, 37, also is a lifetime resident of Suquamish and has also worked for the tribe in grants, education and health research. The seven-member Suquamish Tribal Council is governing body of the tribe, and council members serve in three-year staggered terms. The Suquamish Tribe has approximately 1,050 members, who vote for Tribal Council positions during their annual General Council meeting held each spring.
Read Your Local Business News Online on your mobile device www.KPBJ.com
YOUR COMMUNITY PARTNERS How healthy is your business? Now is the perfect time to talk with our experts. We want to help, call or stop by today.
Leslie Peterson SVP & Chief Lending Officer
(360) 394-4753 lesliep@libertybaybank.com
(360) 779-4567 Commercial Real Estate – Term Loans – Lines of Credit
Duane Edwards SVP & Relationship Manager
(360) 394-4775 duanee@libertybaybank.com
19917 Seventh Ave NE, STE.101 | Poulsbo, WA 98370 BUSINESS | PERSONAL | HOME
www.libertybaybank.com
April 2013 Kitsap Peninsula Business Journal • KPBJ.com 23
Suquamish Tribe elects two new council members
Title Insurance Escrow Services Real Estate Resources
360-895-7799 1382 SE Lund Avenue, Suite 1 Port Orchard, WA 98366
Conference center may expand into Kitsap Transit space By Tim Kelly, Editor Instead of turning away events that need more space than Kitsap Conference Center has, the city-owned facility could turn a profit next year for the first time if an expansion plan works out. The conference center is adjacent to the three-story headquarters of Kitsap Transit. The top floor of that building has sweeping views of the waterfront and Sinclair Inlet,
The third floor of the Kitsap Transit building offers sweeping views of Bremerton’s waterfront and Sinclair Inlet. The city may lease the 7,000-square-foot space and do tenant improvements to provide additional rooms for events booked at the adjacent Kitsap Conference Center.
but the 7,000 square feet of unfinished space has always been vacant. Not for much longer, perhaps. Bremerton Mayor Patty Lent is working with Columbia Hospitality, the firm the city contracts with to manage Kitsap Conference Center and Gold Mountain Golf Course, on a plan to lease the space from Kitsap Transit. Potential funding from the Kitsap Public Facilities District would
Former Abbey Carpet Building for Sale • Quick access to Highway #3 • Versitile retail/office/warehouse • 10,460 SF building; Main level 8,510 SF, 1,950 SF Mezzanine, 2,300 SF Warehouse in rear • Zoned neighborhood business • Vacant and available $675,000
Contact Victor Ulsh, CCIM Bradley Scott Commercial Real Estate
24 • Kitsap Peninsula Business Journal • KPBJ.com April 2013
(360) 479-6900 • (800) 479-6903
www.bradleyscottinc.com
Tim Kelly photo
pay for tenant improvements in lieu of rent for the first two years, and the third floor could be transformed into additional banquet and meeting space for the conference center by 2014. Barbara Rush, director of operations for Columbia Hospitality’s conference centers, said at a recent Bremerton City Council meeting that utilizing the third floor in addition to the 10,000-square-foot conference center would would give
Columbia more space and flexibility in booking events such as multi-day conferences that need breakout meeting rooms, or trade shows that need exhibition space. Based on tracking lost business due to the conference center already being booked or not providing adequate space, Columbia’s projections are for 72 social events and 48 corporate events for the first year the thirdfloor space would be available. “So we’re excited, beyond the economic impact that the facility brings to the region, to also be able to turn a p rofit in 2014,” Rush said at the council meeting. The city showed a $43,000 operating loss for the Kitsap Conference Center in 2012, but Rush said that annual amount has been declining under Columbia’s management. Lent told the council the planned tenant improvements would cost about $400,000, and that the city would outline its funding request at the Kitsap Public Facilities District board meeting on March 25. “We’re pretty confident about what we can do … with an expanded conference center,” the mayor said. The council voted to authorize Lent to go forward with the funding request to PFD and lease negotiations with Kitsap Transit. PFD director Mike Walton said the district has about $750,000 available for projects this year, but has other funding requests to consider. Kitsap Transit executive director John Clauson said the idea of leasing the vacant third-floor space was first proposed last year by Ken Millsap, who was Kitsap Conference Center general manager at the time. “He and I started to explore the possibilities, and he was very excited about the potential,” Clauson said. Millsap was let go by Columbia Hospitality in late February, about 15 months after he was hired as GM. Rush, who is acting as interim general manager, said the company would have no comment about his departure, and Millsap could not be reached.
High-speed broadband expansion connects communities across Washington Nearly 1,000 miles of new Internet fiber brought to rural businesses, residents and institutions PRNewswire TACOMA — Construction is now complete on Northwest Open Access Network's (NoaNet) nearly 1,000-mile expansion of broadband fiber, connecting nearly all unserved areas of Washington state that have struggled with limited access to high-speed Internet. NoaNet received two federal American Reinvestment and Recovery Act grants to bring high-speed Internet access to schools, hospitals, emergency response agencies and libraries across Washington, and to lay the groundwork for bringing affordable broadband service to thousands of businesses and households. An additional 600 miles of expansion is scheduled for completion this summer through the second grant. "This broadband initiative created immediate jobs during construction and brings economic investment to rural areas for years to come that have been left behind by the digital revolution," said Greg Marney, chief executive officer of NoaNet. "Washington is now nationally recognized
as one of the most wired states in the country and we're proud to have contributed to this accomplishment." Remote areas often have only the most rudimentary Internet capabilities needed to share critical information among firefighters, police, hospitals and first responders. Additionally, businesses are reluctant to relocate or expand in areas not served by broadband. The new broadband service will expand public safety access to critical emergency and healthcare services to the hardest to reach locations in the state. The enhanced broadband system will also increase availability and viability for using broadband to transfer real-time data over networks, allowing hospital physicians to communicate with EMTs en route from injury sites. "The strong partnership between NoaNet and the Washington State Library was key to improving broadband access to nearly 50 local libraries," said Rand Simmons, Washington State Librarian. "Our state's libraries are now able to help community
Kitsap Regional Library now offering digital magazines additional software. They can use any internet browser such as Safari, Internet Explorer, Google Chrome or Firefox. To read magazines offline, library patrons will want to download free apps available online for Apple devices, Droid devices, Kindles and Blackberrys. There are links to find these apps on the KRL Digital Magazine Website. KRL’s Zinio subscription allows as many patrons as desire to see the same magazine at the same time. There’s no waiting for a copy to become available. The copy of the magazine remains on a device for as long as the user wants it. And users can sign up to be notified by e-mail any time a new issue of a magazine they are “subscribed” to becomes available. Sharon Grant, KRL’s digital branch manager, is excited to be able to add this service to the library system’s digital collection. You can access the downloadable magazine collection at rbdg.envionsoftware.com/krlwa/zinio.
Stress management is topic at next Kitsap Business Forum The Kitsap Business Forum will present “Get Your Life Back – Stress Management and Life Balance for Business Leaders” led by Leslie Dullum-Tutterow of Optimal Wellness, Inc. on April 9. She will be providing some hands-on strategies to help business managers, executives and owners achieve the lifestyle they want. The Kitsap Business Forum is sponsored by the Silverdale Chamber of Commerce, Dave Mitchell, Morgan Stanley and the Bremerton Chamber of
Commerce. Panera Bread will provide coffee and bagels at the event. The event will be held at the Morgan Stanley office in Silverdale at 2011 Myhre Road, Suite 301. The forum will start at 7:30 a.m. and finish at 9. Participants are encouraged to make a small donation to Holly Ridge Center to support children with disabilities. Anyone interested in attending should RSVP to 360-692-6800, or go online to leadershipbalance.eventbrite.com/
commercial agriculture sector. "NoaNet and its member public utility districts have been working for more than a decade to bring broadband access to unserved and underserved areas of our state. We know from experience that worldclass broadband connectivity is essential for job creation and providing key community services like healthcare, education and involvement in government," said Dave Siburg, general manager of Kitsap Public Utility District. About NoaNet NoaNet is leading the effort on behalf of a consortium of more than 60 private, governmental, tribal and nonprofit participants. NoaNet is a nonprofit mutual corporation providing wholesale telecommunications transport and is headquartered in Tacoma. For more than 10 years, it has operated a reliable public open-access broadband communication network totaling 1,831 fiber miles that provides rural areas access to broadband services, supporting 61 last-mile providers that serve more than 260,000 customers. NoaNet's members are 12 public utility districts — including those in Kitsap, Mason and Jefferson counties — and a joint operating agency that have served wholesale customers in Washington state since 2000.
“Partners in Business” “We signed on with Telebyte NW in May 1997. They handle all of our domains, email accounts, and they have been there for all our networking needs. “They offer phenomenal and prompt customer service. We would absolutely recommend Telebyte NW for your business.” — Chuck Capps, Business Development Manager Advantage Nissan/Advantage Auto Works
360-613-5220 • TELEBYTE.COM
360-373-2137 • NW-COMMNET.COM
TELEBN005JM
CC01NWCOML002LH
April 2013 Kitsap Peninsula Business Journal • KPBJ.com 25
Kitsap Regional Library patrons now have unlimited access to more than 100 digital magazine titles, cover to cover with no waiting. Popular titles such as Newsweek, Consumer Reports, National Geographic and Popular Photography are being provided through KRL’s subscription to Zinio, available through one of KRL’s vendors. Kitsap County library card holders can pick up issues of their favorite magazines at the KRL Digital Magazine Website each month and view them on their computers, tablets or phones. Digital magazines are best enjoyed on LCD devices that are designed to view full color images, such as Kindle Fires, iPads, Android tablets, laptops or desktop computers. Basic Kindles, Nooks, Kobos and other devices with gray scale (e-Ink) screens are not optimized for this type of content. Patrons who want to browse magazines on their computers do not require any
members participate in e-learning, egovernment and provide online services and digital resources for the 21st century." The new broadband infrastructure creates a seamless network connection capable of: • Connecting community colleges and universities, creating opportunities for collaboration on research and information exchange. • Making remote diagnosis, enhancing professional training with reduced travel, and making it possible to provide immediate assessment and guidance to emergency workers via videoconferencing. • Enabling businesses to utilize broadband to enhance business-tobusiness and machine-to-machine computing requirements, allowing efficiencies in automation of processes including inventory and fulfillment systems and web-oriented sales that are not currently available or extremely limited. • Giving farmers access to advanced production technologies and real-time online trading markets; improving efficiencies and worldwide competitiveness of this important
Is your portfolio truly diversified? By Jeff Thomsen Life is full of ups and downs — and the financial markets are no different. As an investor, you’re no doubt happy to see the “ups” — but the “downs” can seem like a real downer. Isn’t there any way to help smooth out the volatility in your investment portfolio? First of all, to cope with volatility, it’s helpful to know what causes it — and there can be many causes. Computers that make trades in milliseconds, based on mathematical models, are sometimes blamed for intraday volatility, but large price swings can also occur following the release of government economic reports, such as those dealing with unemployment and housing starts. Global events, such as the European economic malaise, can also send the financial markets into a tizzy. By being aware of the impact of these events, you can see that the workings of the markets — especially their volatility — may not be as mysterious as you thought. Still, while knowing the causes of volatility can help you prepare for market swings, it won’t blunt their impact on your portfolio. To do
that, you need to create a diversified mix of investments because your portfolio can be more susceptible to negative price movements if you only own one type of asset. To illustrate: If you owned mostly bonds, and interest rates rose sharply, the value of your bonds would likely drop, and your portfolio could take a big hit. But if you owned stocks, bonds, government securities, certificates of deposit (CDs) and other investment vehicles, the rise in interest rates would probably affect your portfolio less significantly. Unfortunately, many investors think that if they own a few stocks and a bond, they’re diversified. But you can actually extend your diversification through many levels — and you should. For the equity portion of your portfolio, try to own stocks representing many market sectors and industries. Also, consider international stocks. And rather than just owning U.S. Treasury bonds, consider corporate bonds and municipal bonds, and diversify your fixed-income holdings further by purchasing short-term, intermediate-term and long-term bonds. Work with your financial advisor to determine the mix of asset classes and investments that are appropriate for your financial goals and objectives.
How you ultimately diversify your portfolio depends on your risk tolerance, time horizon and long-term goals — there’s no one “correct” asset mix for everyone. And over time, your diversification needs may change. To cite one example, as you enter your retirement years, you may need to increase your percentage of incomeproducing investments while possibly reducing the amount of growth investments you own. These growth-oriented investments tend to be more volatile, and you may want less volatility during your
retirement. However, even during retirement, you will need to own a certain percentage of growth investments to provide you with the growth potential you’ll need to stay ahead of inflation. Keep in mind that diversification can’t guarantee a profit or protect against loss. Nonetheless, building a diversified portfolio may help take some of the volatility out of investing — so look for diversification opportunities whenever possible. Jeff Thomsen is an Edward Jones financial advisor in Bremerton.
Be aware of risks of not investing By David Hawley Jr. You’ve no doubt heard about the risks associated with investing. This investment carries this type of risk, while that investment carries another one. And it is certainly true that all investments do involve some form of risk. But what about not investing? Isn’t there some risk associated with that, too? In fact, by staying on the investment sidelines, or at least by avoiding long-term, growth-oriented
investments, you may incur several risks. Here are some to consider: You might not keep up with inflation. If you put all your money under the proverbial “mattress,” or, more realistically, you keep it all in “cash” instruments and very short-term investments, you might think you are “playing it safe.” After all, you might reason, your principal is protected, so even if you don’t really make any money, you’re not losing it, either. But that’s not strictly true, because if your money is in investment vehicles that don’t even keep up with inflation, you can lose ground. In fact, Risks, page 27
KNOW WHO TO CALL 26 • Kitsap Peninsula Business Journal • KPBJ.com April 2013
www.edwardjones.com
Members SIPC
WHEN YOUR BONDS ARE CALLED Your local Edward Jones financial advisors:
Reinvesting after your bonds are called can seem overwhelming if you’re not prepared. That’s why it makes sense to call Edward Jones. That way you can find an investment that fits your specific needs. All you have to do to get started is pick up the phone.
Ron Rada
Pat McFadden
Todd Tidball
Donald Logan
Jessie Nino
8079 E Main St Suite 111 Manchester
19740 7th Ave NE Suite 114 Poulsbo
18887 Hwy 305 NE Suite 100 Poulsbo
2416 NW Myhre Rd Suite 102 Silverdale
19740 7th Ave NE Suite 114 Poulsbo
360 871-0998 1-800-995-0242
360 779-6450
360 779-6123 1-800-248-6123
360 692-1216
360 779-6450
Erin R. Abrigo
Calvin Christensen
David Hawley
Teresa Bryant
Glenn Anderson, AAMS
5775 Soundview Drive Suite 203-C Gig Harbor
3100 NW Bucklin Hill Rd Suite 115 Silverdale
23781 Hwy 3 Suite 101 B Belfair
555 Pacific Ave Suite 101 Downtown Bremerton
19032 Jensen Way NE Poulsbo
253 853-7988
360 698-6092
360 275-7177
360 373-1263 1-888-373-1263
Edward A. Finholm Denette George 423 Sedgwick Rd Suite 121 Port Orchard
3421 Kitsap Way Suite A Bremerton
360 297-8664
360 876-4709
Debi Tanner 8202 NE State Hwy 104 Suite 106 Kingston
360 297-8677
Call or visit your local financial advisor today.
Adam R. Burleson Jeff Thomsen, AAMS
25960 Ohio Ave NE Suite 101 Kingston
5971 Hwy 303 N Bremerton
360 779-7894 1-866-779-7900
Jay Seaton 600 Kitsap St Suite 102 Port Orchard
360 373-0233
360 475-0683 1-888-475-4450
360 876-7538
Schelley Dyess
Mary Beslagic
Lori L. Morgan, AAMS
Ed McAvoy
2299 Bethel Ave Port Orchard
8079 E Main St Manchester
360 876-3835 1-888-688-7817
360 871-0998 1-800-995-0242
213 Madison Ave N Suite 200 Bainbridge Island
20270 Front St Suite 102 Poulsbo
206 842-1255
360 598-3750
Michael F. Allen, AAMS
Angela Sell
Jim Thatcher
3500 Anderson Hill Rd Suite 101 Silverdale
3276 Plaza Rd NW Suite 112 Silverdale
2135 Sheridan Rd Suite E Bremerton
360 308-9514
360 698-7408
360 373-6939
Budgeting in retirement how much you can spend without having to worry about running out of money. Budgeting in its most basic sense is simply an exercise of comparing your income vs. expenses. The easy part of a budget is understanding how much income you will have. But as you prepare to transition into retirement, you will need to have a solid handle on how much money you spend every month. Doing so will help you determine if you have saved enough to support your retirement lifestyle goals, and give you a foundation for structuring an income plan that will provide you with the confidence you will not run out of money in retirement. Most people have a hard time carrying around a notebook and recording every penny they spend. So if you are comfortable using technology, then you may want to consider using only your debit card for three to six months in conjunction with a program like Mint.com. Mint.com tracks all of your purchases and pulls all of the information from your checking and debit card accounts to help you categorize and track all of your spending. When my wife and I went through this exercise, we were surprised to see just how muc h of our money Central Market was getting every month. One of the advantages of tracking your spending using a tool like Mint.com and your debit card is it makes it easy to discover where every penny is being spent. When you mix cash into the equation, then creating an honest assessment of just how much you are spending on the little things becomes difficult, and sometimes the little things are what can create big problems. Benjamin Franklin said it best, "Beware of the little expenses; a small leak will sink a great ship." Your goal when developing your personal monthly budget is to get a solid grasp of how much money you need every month to pay for basic living expenses. Take into consideration any bills you pay quarterly, semi- annually or annually, such as property
RISKS
when you retire and how you’ll retire — that is, what sort of lifestyle you’ll pursue during retirement. But both these choices may be taken out of your hands if you haven’t invested enough to retire on your own terms. You might not be able to leave the type of legacy you desire. Like most people, you would probably like to be able to leave something behind to your family and to those charitable organizations you support. You can help create this type of legacy through the appropriate legal vehicles — i.e., a will, a living trust and so on — but you’ll still need to fund these mechanisms somehow. And that means you’ll need to draw on all your financial assets, including your investments. Work with your financial advisor to determine the mixture of growth and income investments you need during your working years and as you move toward retirement to help you meet your retirement goals. However you do it, get into the habit of investing, and never lose it — because the risks of not investing are just too great. David Hawley Jr. is an Edward Jones financial advisor in Belfair.
from page 26 even at a relatively mild 3 percent annual inflation rate, your purchasing power will decline by about half in just 25 years. You might outlive your money. For a 65-year-old couple, there’s a 50 percent chance that one spouse will live past age 90, according to the Society of Actuaries. This statistic suggests that you may need your investments to help provide enough income to sustain you for two, or even three, decades in retirement. You might not be able to maintain your financial independence. Even if you don’t totally run out of money, you could end up scrimping by — or, even worse, you could become somewhat dependent on your grown children for financial assistance. For most people, this prospect is unacceptable. Consequently, you’ll want to make appropriate financial decisions to help maintain your financial independence. You might not be able to retire on your terms. You would probably like to decide
taxes and insurance. Once you have a clear picture on just how much you need every month, then you can start to have some fun and find out how much more you want for things like travel, play and spoiling your grandkids. Our government has a good track record of making sure our dollars have less purchasing power every year. If you visit the Bureau of Labor and Statistics inflation calculator, then you will find that $10,000 in 1970 has the same purchasing power as $59,350.52 in 2013. So while you may need $6,000 per month in 2013 to have the desired lifestyle, you need to make sure your income plan is flexible enough to be able to adjust to rising costs in future years. While most people focus on maximizing their income, I've also had the good fortune of working with some folks who choose to take a hard look at reducing expenses. One couple in particular comes to mind. They wanted to reduce their expenses, but didn't want to reduce their standard of living. After two years of research and travel, they decided that their dollars would stretch much further by living abroad than by living in Kitsap County. Today they enjoy a moderate climate in what's known as an ex-patriot community where people from all of the world retire. They say the culture is great, and the weather is incredible. Everyone who lives in their community are all transplants from around the globe, and they are looking to make new
friends so they have a vibrant social life. They have a better lifestyle at a fraction of the cost. Ultimately a budget allows you to understand your basic expenses so that you can construct an income plan to help you get every ounce of life out of the dollars you have accumulated. Retiring without a budget is like taking a road trip without a map. You may reach your destination, but the trip will likely be expensive, wasteful and create a lot of unnecessary worry. Visit my blog at Thrivingin-Retirement.com on the resources page to download a budget data-gathering form to help you get started on creating your personal budget. • Editor’s Note: Article written by Jason Parker. He is the president of Parker Financial LLC, a fee-based registered investment advisory firm specializing in wealth management for retirees. His office is located in Silverdale. The opinions and information voiced in this material are not intended to provide specific advice or recommendations for any individual, and do not constitute a solicitation for any securities or insurance products. All information is believed to be from reliable sources; however, no representation is made as to its completeness or accuracy. Please consult your trusted professional for advice and further information. Jason Parker is insurance-licensed and holds his series 65 securities license. He offers annuities, life and long-term care insurances as well as investment services. Follow Jason’s blog at www.thriving-inretirement.com.
April 2013 Kitsap Peninsula Business Journal • KPBJ.com 27
By Jason R. Parker I recently met with some affluent and successful retirees who came to see me with some questions on cash flow. They had income of more than $100,000 per year, yet they felt like they didn't have enough income to enjoy the lifestyle they had grown accustomed to. I asked them to tell me the very first thing that comes to mind when they hear the word budget. One said it had a negative connotation and meant having to cut back. The other one said budgeting was financial discipline and being prudent. Most of us would probably agree with one of these two statements. With all of the nonstop chatter in Washington, D.C., these days about sequestration and budgeting, the last thing you probably want to read is an article about budgeting. This topic tends to make most people cringe. One of the things I've learned by working with very successful and very wealthy people is it doesn't matter how much money you make or how much income you have, because many people tend to increase their lifestyle expectations as quickly as their income increases. A good friend of mine is fond of saying that the luxuries of the past become the necessities of today, and sometimes the most difficult part of budgeting for a married couple is getting both people to agree upon a budget. Budgeting is simply taking the time to make a conscious, disciplined decision about how you will spend your money. The alternative is to spend your time wondering where your money went. During our years of accumulating wealth, many of us budget so we can save more. But once you have retired, the emphasis isn't so much on trying to save as much as possible as it is trying to figure out
GM engineers take innovations from lab to showroom in 2013 By Richard James, GM Western Region Product Communications Manager The engineers at Buick, Cadillac, GMC and Chevrolet are reinventing the automobile for 2013 and beyond as GM boasts one of the strongest and most diverse lineups of vehicles in our history. Nowhere is that reinvention more evident than in our latest electric vehicles, which hold the promise of cleaner air and reduced petroleum dependence. Technologies that once seemed far-fetched are leaving the research lab and arriving in dealer showrooms in the Northwest. When the 2014 Chevy Spark EV launches this summer, it will be the first allelectric vehicle sold by GM in the company’s history. The Spark EV will also be the first electric vehicle sold in North America with the optional SAE Combo DC Fast Charger capable of charging the battery to 80 percent capacity in 20 minutes. The five-door urban car is the perfect vehicle to take on the daily commute from the Kitsap Peninsula to Seattle or Tacoma. And with the ability to go
from 0-to-60 mph in less than eight seconds, drivers won’t miss the gas, or the gas prices. For those wanting the advantages of an electric motor in a full luxury package without giving up the range of a gas-powered vehicle, the Cadillac ELR goes on sale later this year. The high-performance coupe will be capable of running on its battery for approximately 35 miles, long enough for most drivers’ commutes and local trips, before switching over to the range extender. Chevrolet pioneered the concept of a battery-powered vehicle with a gasoline range extender with the release of the Chevy Volt. For 2013, engineers have tweaked the battery in America’s best-selling plug-in car to extend its average electric range to 38 miles — an increase of three miles from the 2012 model. On the performance side, we have four new and revamped cars to look forward to this year from Chevrolet. Introduced at Daytona in February, the 2014 Chevy SS sports sedan is the brand’s first V-8 powered, rear-wheel drive performance sedan since 1996. Its 6.2L engine rated at an
estimated 415 horsepower accelerates the car from 0-to-60 mph in five seconds flat with a six-speed automatic transmission. The 2014 Corvette Stingray coupe and the Stingray convertible also were introduced earlier this year and will be the most fuel-efficient standard Corvettes ever. With an estimated 450 horsepower, both cars are capable of springing from 0-to-60 mph in around four seco nds. The convertible features an all-new, fully electronic top that can be lowered with the push of a button, including on the key fob. All of these cars will be showcased at the 2013 New York International Auto Show, where Chevrolet will also debut the revamped 2014 Camaro. The latest model will advance the design and performance attributes that have made it the most popular sports car under $50,000 for three consecutive years. Redesigns of three of the country’s most popular, mid-size luxury cars — the Cadillac CTS, the Buick Regal and Buick Lacrosse — will be unveiled at the auto show as well. Cadillac and Buick continue to draw new
customers to their brands by focusing on performance and handling. The latest updates will continue that tradition. Buick’s dedication to handling extends to its Encore cros sover. While it offers amenities often found only in much larger vehicles, the Encore remains nimble enough to drive and park on some of Washington’s tightest streets and parking lots with a turning circle of 36.7 feet — almost a footand-a-half less than a Mini Countryman. For truck customers, the all-new 2014 Chevrolet Silverado 1500 and all-new GMC Sierra 1500 offer more power, more torque and improved fuel efficiency with a trio of allnew EcoTec3 engines designed for their needs. The new engine family includes a 4.3L V6, a 5.3L V-8 and a 6.2L V-8. They also feature unexpected infotainment technology like the new Chevy MyLink and GMC IntelliLink systems that bring apps like Pandora and Sticher into the cab. This is just a glimpse of what our engineers have been working on. As the saying goes, “just wait until you see what they do next.”
28 • Kitsap Peninsula Business Journal • KPBJ.com April 2013
2013 Cadillac ATS: New contender in luxury compact sport sedans By Bruce Caldwell A four-cylinder Cadillac sedan sounds like a risky move for a brand known for luxury and indeed it was the last time they tried it. The 1980’s Cadillac Cimarron was a mechanical and sales disaster, but the allnew 2013 Cadillac ATS is so far removed that the only real similarities are four doors and a Cadillac nameplate. The 2013 Cadillac ATS isn’t an overloaded Chevy/Pontiac/Oldsmobile. It’s a unique platform/architecture with DNA more akin to European sports sedans than domestic economy cars. Fuel economy isn’t the thrust of the ATS, although it is excellent. The real goal of the ATS was to build an American luxury import fighter that could realistically compete against European legends such as the BMW 3-series, Mercedes C-class, and Audi A4. Based on our week with the Cadillac ATS we think General Motors has a very worthy challenger. Walkaround: Contemporary Cadillacs are among the most handsome cars on the road and the new ATS is no exception. The styling is crisp and clean. The nose and roofline are sharply sloped. The tail is slightly raised and bobbed. The result is a purposeful, muscular look that’s the polar opposite of the brand’s vintage luxury barges. Cadillacs are as sharp and stylish (if not more so) as any European sport sedans. Cadillac took a huge risk by modernizing its image with some very bold styling changes, but the payoff has been spectacular. The handsome ATS is a perfect extension of that styling/performance statement.
The Cadillac ATS is available in four trim levels: Base, Luxury, Performance, and Premium. Our Luxury tester was covered in the beautiful White Diamond Tricoat paint (a $995 option). We think the ATS styling is the best of the three similar looking Cadillac sedans (ATS, CTS, and XTS). Interior: The ATS interior is a classic case of good news/bad news--great front seats and slightly above tolerable rear seats. The ATS is a compact luxury sedan and both adjectives apply. Interior materials, colors, textures, quality, quietness, and optional features are all first class, but the scale is reduced. Seating is strictly four-passenger. Front legroom is abundant and rear legroom can be as tight as 3-inches when the long-travel front seat tracks are all the way back. The long travel allows maximum front legroom without rear passengers and a reasonable compromise with passengers. I’m tall and I found a seat position where I fit fine in both front and rear on the passenger side. Notched hard plastic seatbacks provide extra knee room, although under seat shoe space is tight. Interior storage is on the minimalist side. There are no rear door bins and the two seatback pouches are snug. Trunk space is good, but not expansive. The floor is flat and the split rear seats fold reasonably flat. Large wheelwells intrude, so cargo space is somewhat narrow. The whole trunk is covered in quality carpeting. Under The Hood: The sports sedan styling of the Cadillac ATS is easily matched by its mechanical underpinnings.
The base engine is a 2.5-liter four-cylinder that’s rated at 202 horsepower. The first optional engine is the 2.0-liter turbocharged I-4 that powered our test car. It’s rated at 272-horsepower with 260 lb-ft of torque. The top engine is the 321horsepower 3.6-liter V-6. The V-6 produces 275 lb-ft of torque at 4800 rpm, while the mighty little turbo four achieves peak torque at 1700 rpm. That low-end torque makes the turbo four our choice for everyday driving fun. A big bonus with the 2.0-L turbo motor is that it’s available with the optional 6speed manual transmission. An excellent Hydra-Matic 6L45 6-speed automatic transmission is standard with all three engines. Our tester had the automatic, which performed flawlessly. Shifts were crisp and smooth. Rear wheel drive is standard, but allwheel-drive can be ordered with both the turbo four and the V-6. The combination of a turbo four engine, 6-speed automatic, and AWD makes the Cadillac ATS a true import fighter.
Behind The Wheel: We thoroughly enjoyed driving the Cadillac ATS. Its road manners are a fine blend of comfort and sportiness. The ride felt smooth even with optional 18-inch alloy wheels and 225/40R18 tires. We felt in touch with the road, but not beaten up by it. The turbo four accelerates with verve. There isn’t any noticeable turbo lag and well-spaced gears make the most of available power and torque. The EPA rates the turbo ATS at 21-mpg city and 31-mpg highway. Excellent brakes and many high-tech safety features (standard and available) help manage the car’s performance potential. A unique feature was the driver’s safety alert seat (part of the optional Driver Awareness Package) that vibrates either the left or right side of the cushion if you start to stray from your lane. Whines: The CUE (Cadillac User Experience) info/entertainment touch screen didn’t seem particularly intuitive to us, but more technologically advanced people (like iPad owners) love it. There’s even an iPad tutorial app. The handsome slope of the roofline hampers rear seat ingress/egress. Bottom Line: The 2013 Cadillac ATS is a luxury compact sport sedan that’s very worthy of its esteemed nameplate. The engine displacement is small, but its performance is huge. Styling is stunning, quality is high, front seat comfort is great, technology is state-of-the-art, and it’s fun to drive. The 2013 Cadillac ATS is a very strong contender.
Nissan Altima is all-new vehicle for 2013 display located between the speedometer and tach, providing fuel economy, trip computer, audio information, tire-pressure readings, and most importantly, turn-by-turn navigation. The leather-wrapped steering wheel offered the usual audio and cruise controls, plus controls for the navigation system, which provided good information via simple, effective graphics. Two things particularly worth mentioning are the Altima’s quietness, and new zero-gravity seats. Nissan made considerable strides in strengthening the body structure and soundproofing its panels, which strongly contribute to the car’s class-above feeling, since quietness is a luxury car trademark. Nissan’s Zero-Gravity seats are designed to provide consistent support from pelvis to chest, and during our sixhour road trip, which included a lot of winding two-lane blacktop through the Tennessee countryside, as well as freeway driving, they were extremely comfortable. Before embarking on the trip, we had an opportunity to sit side-by-side in them and in a competitor’s seats. There was absolutely no comparison in comfort. The new Altima also boasts great electronic connectivity. All models come with Bluetooth hands-free phone connections and streaming audio. Also available is hands-free text messaging, Pandora integration, a USB/iPod connection and Sirius/XM satellite radio. Under The Hood: The 2.5-Liter inline 4-banger is newly redesigned and married to a vastly improved Nissan CVT. This drivetrain delivers a segment-leading 38 mpg EPA Highway rating — better than Chevy Malibu ECO, Hyundai Hybrid, Ford Fusion Hybrid, or any other competing midsize sedan. The strong 3.5 V6 is married to the same CVT. Behind The Wheel: We found the 182horse 2.5 worked hard to deliver what we’d term slightly above-average performance for this segment. Nissan says it does the 060 drill in 7.14 seconds. We’re thinking 8 seconds is probably more realistic — and for 38 mpg, you can handle 8 seconds. Meanwhile the 3.5 V6 is a brilliant performer, doing the same drill in a very honest 6.2 seconds — fastest in this class. The secret to the 2.5-Liter’s efficiency is the CVT. At 70 mph the Altima ran at 1,650 rpm — barely awake, and just sipping fuel. While the competitors hype their hybrids while forgetting to mention the excess cost, Nissan slipped under the radar and beat them all at the pump. The Altima’s highway manners are superb. The top-of-the-line Altima SL trim is very luxurious, while the cloth SV trim isn’t bad either, with all models extremely quiet. The multi-link suspension has been
redesigned for excellent handling on all terrains, and the 4-wheel ABS disc brakes are equipped with electronic brake distribution, delivering minute degrees of braking control in slippery conditions. Understeer control, vehicle dynamic control (VDC) and traction control, each of which are fully automatic and selfactivating, combine to give this car the full meal deal of modern safety and security. Whines: On the 2.5, intelligent circuitry and the CVT regulate engine speed
automatically, but we still missed the paddle shifters — available only on the 3.5 models. Bottom Line: Headline-making fuel efficiency, great handling, unusual quietness, innovative connectivity and extraordinary creature comforts make the 2013 Altima a stylish, affordable and tempting choice regardless of the trim level you choose. The 2013 Altima interior feels like anything but a midsize car, while the higher trim models are absolutely lavish.
THE NEW 2013
NISSAN ALTIMA
IONAL ADDIT L E R A E D UP MARK
3,000 OFF
$
MSRP on any new ALTIMA in stock!
April 2013 Kitsap Peninsula Business Journal • KPBJ.com 29
By Lary and Dee Coppola After four highly successful generations, the venerable Nissan Altima enters its fifth generation as a totally new vehicle for 2013. Boasting a combination of innovative mechanical improvements, painstakingly tuned ride and handling, coupled with advanced cockpit connectivity and sleek styling, the 2013 Altima feels and drives like it’s in a class above its crowded midsize segment. The 2013 Altima arrives with a choice of a newly redesigned 2.5-liter four-banger that puts a surprisingly peppy 182 horses to the highway — or a more forceful 270-hp version of Nissan’s revered 3.5-liter V6, which has replaced the small-block Chevy of yore for being universally recognized as one of the best, strongest and most versatile powerplants ever built. Safety equipment on all Altima models include ABS, EBD, Brake Assist, all federally mandated airbags, seatbelt pretensioners, child seat anchors, LATCH child-seat system, power window lockout, child safety rear door locks, emergency inside trunk release, Vehicle Dynamics Control, Traction Control, tire-pressure monitor, and Vehicle Immobilizer System. The Nissan Altima competes with the Toyota Camry, Honda Accord, Mazda 6, Hyundai Sonata, Kia Optima, Volkswagen Passat, Chevy Malibu and Ford Fusion. Model Lineup: The four Altima 2.5 models — base, S, SV and SL — are powered by the aforementioned 182-hp 2.5-liter four-cylinder, while all three Altima 3.5 models — S, SV and SL — feature the 270-hp 3.5-liter V6. Both Altima versions come with a continuously variable transmission (CVT). Walkaround: The 2013 Nissan Altima features sleek, aggressive styling that gives it the appearance of being a class above its competitors. For 2013, the Altima has the same wheelbase as previously, but is 1.4 inches wider, and its fenders are deeper, giving it a sporty, aggressive, muscularlooking stance. A chrome-trimmed, blacked-out grille and smooth-looking headlight cluster meet the short hood, and all flow easily to the steeply raked windshield. A single character line runs high and cleanly along the side towards the rear. Nissan designers intentionally avoided multiple, opposing character lines such as the Hyundai Sonata, avoiding cluttering Altima’s simple but elegant design. Chrome trim around the windows and bright 10-spoke wheels add to Altima’s near-luxury allure. At the rear, a bold chrome bar rides above the ending of the side character lines at the bottom of the trunk. The trunk has a convenient low lift-over height and the design signs off with dual chrome tailpipes. Interior: The 2013 Altima lineup offers a varied range of interior trim levels, depending on the model. The white-on-black instrumentation is extremely legible, and surrounded by nice soft-touch dashboard padding. The Advanced Drive-Assist Display — standard on every model — is a four-inch color
What’s new this year: More fuel-efficient, fun, functional vehicles from Ford
30 • Kitsap Peninsula Business Journal • KPBJ.com April 2013
By Jenny Yim-Nordquist, Ford Motor Co. Representative With rising gas prices taking a bigger bite out of people's wallets, fuel economy has become even more of a key purchase consideration for consumers. Ford is committed to delivering vehicles with the best or among the best fuel economy with every new product it brings to market — without sacrificing performance, capability or driving fun. Newer offerings include a wide range of vehicles, from smaller cars to hybrid/electric vehicles to the ever-popular pickup trucks. This variety reflects Ford’s Power of Choice commitment to consumers. 2013 Ford Fusion The all-new Fusion is the most fuelefficient midsize sedan in America, with an EPA-certified 47 mpg city, 47 mpg highway and 47 mpg combined fuel economy rating for its hybrid model. Fusion offers hybrid and plug-in hybrid electric versions, as well as two fuel-efficient EcoBoost® four-cylinder engines for customers. • 1.6-liter EcoBoost engine: 25 mpg city, 37 mpg highway, 29 mpg combined • 2.0-liter EcoBoost engine: 22 mpg city, 33 mpg highway, 26 mpg combined • 2.5-liter engine: 22 mpg city, 34 mpg highway, 26 mpg combined • Fusion Energi plug-in hybrid electric: EPA-certified at 100-plus MPGe (milesper-gallon equivalent) combined. Also EPA-rated at a total range of 620 miles on a single tank of gas and a full-charged battery. 2013 Ford C-MAX The all-new C-MAX utility vehicle is available in hybrid and plug-in hybrid
electric versions. The C-MAX hybrid is EPA-certified at 47 mpg city, 47 mpg highway and 47 mpg combined — beating the Toyota Prius v by up to 7 mpg. Hybrids traditionally have been more economical in city driving than on the highway, unlike conventional vehicles. CMAX Hybrid is Ford’s first hybrid vehicle to offer 47 mpg across the board. The plug-in hybrid electric version, CMAX Energi, delivers EPA-certified 108 MPGe city, 92 MPGe highway rating and 100 MPGe combined. It also delivers up to 620 miles of range on a single tank of gas and a fully charged battery. 2013 Ford Escape Consumers looking for cargo, convenience and fuel efficiency will love the all-new Escape, EPA-certified as the most fuel efficient small SUV with an automatic transmission. The Escape’s 1.6-liter EcoBoost® engine is certified at 33 mpg — 2 mpg better than the Honda CR-V and 5 mpg better than Toyota RAV4. All three engines in the new Escape line are EPA-certified at 30-plus mpg on the highway. The 2.0-liter EcoBoost, certified at 30 mpg on the highway, beats the Toyota RAV4 by 3 mpg and the Chevrolet Equinox by 6 mpg. Parents will appreciate the Escape’s increased cargo capacity and convenient options such as the hands-free power liftgate: A gentle kicking motion under the center of the rear bumper activates, unlocks and raises the liftgate. This allows quick, easy and convenient access to the cargo area without setting down packages or digging out keys to open the rear hatch. The same process closes the hatch. 2014 Ford Transit Connect Wagon Available later this year, this unique
seven-passenger people-mover is expected to break the 30 mpg-plus highway barrier. The Transit Connect Wagon, which drives like a car, has the flexibility of a utility and can haul the payload of a full-size pickup. Transit Connect Wagon gives young families and people on the go the fun-todrive and efficient vehicle they’ve been looking for. Transit Connect Wagon is offered in two wheelbase lengths, in fiveand seven-passenger configurations, and in XL, XLT and Titanium series levels. No other wagon in the market today offers the convenience of fold-flat seating, at least a 1,200-pound payload and more than 100 cubic feet of cargo space. When properly equipped, this versatile wagon is approved to tow up to 2,000 pounds, 500 pounds more than a fourcylinder Toyota Highlander SUV. Ford Atlas Concept Ford F-series pickup trucks continue to be a popular vehicle for both work and play in the Pacific Northwest, and the Ford Atlas
All-new Infiniti Q50 sports sedan – A revolution in design, performance and technology By Kyle Bazemore, Senior Manager Infiniti Communications It starts with an elevated design expression, one that breaks the rules rather than follows them. The new Infiniti Q50’s tight, athletic body blends low, wide proportions with advanced aerodynamics. Its expressive illumination is centered around multi-mode jeweled headlamps. Accented by LED running lights, each adapts independently to changing lighting demands. The Q50’s artful crescent-shaped design arcs continue rearward, giving form to the
Come Check Out What Is Waiting For You At...
Dick VList Motors
$24,995
360-876-4428 888-600-4428 514 Bay Street Port Orchard www.dickvlistmotors.com
Concept continues that excitement. Unveiled at the North American International Auto Show earlier this year, the Ford Atlas Concept showcases the design, capability, fuel efficiency and smart technologies that will define future pickup trucks. Inspired by decades of listening to customers at the places they work and play, the Atlas Concept is a purpose-driven design with prominent wheel arches, a wide stance and chiseled grille – all to reinforce its functional Built Ford Tough® image. Breakthrough features include active aerodynamic elements in the grille, front air dam and wheels that reduce wind resistance to save gas. Truck-specific features that improve capability, durability and productivity include a Dual-Purpose Tailgate Step that integrates with a roof cradle to become a rack for long objects like ladders, Hidden Cargo Ramps to load ATVs and motorcycles, Trailer Backup Assist to enable accurate reversing with a trailer via the simple twist of a knob, and more.
2006 Mercedes ML500 One owner, low miles, loaded
embracing yet roomy interior space within. Luxuriously crafted seats welcome you to a driver-centric cockpit and passengerindulging premium comfort and convenience features. Hand-polished wood accents and Artisan-stitched leather appointed upholstery set the tone, while intuitive technology helps create a personalized environment that knows your preferred seating position, climate settings and even suspension comfort. The advanced Infiniti InTouch™ communications system includes large dual touch-screen displays and puts communication with the outside world within easy reach, with integration of handsfree phone, navigation, entertainment and smart phone apps in a way that is safe and easy-to-use while driving. A next-generation 14-speaker Bose® audio system – anchored by three, 10-inch woofers for clearer deep frequencies and enhanced sound pressure – surrounds you with sound that is optimized for the cabin's acoustics - filtering out noise and distortion for a live-performance experience that is uniquely Infiniti. Q50, page 33
April 2013 Kitsap Peninsula Business Journal • KPBJ.com 31
2013 Acura ILX Hybrid
2013 Chevrolet Spark
MODEL TESTED: • 2013 ACURA ILX Tech HYBRID
MODEL TESTED: • 2013 Mazda CX-9 Grand Touring AWD
MODEL TESTED: • 2013 Chevrolet Spark 2lt 4dr Sedan
ENGINE: • 1.5-liter VTEC 4-cylinder, 111 hp 127 lb-ft torque
ENGINE: • 3.7-liter V-6, 273 hp, 270 lb/ft torque
ENGINE: • 1.2-Liter 4-Cylinder, 84-Hp, 83 Lb/Ft
TRANSMISSION: • CVT automatic, Front Wheel Drive
TRANSMISSION: • 6-speed automatic, Front Wheel Drive (AWD is optional)
TRANSMISSION: • 5-Speed Manual (With Hill Hold), Front Wheel Drive
EPA RATINGS: • 18-mpg city/22-mpg highway
EPA RATINGS: • 32-Mpg City/38-Mpg Highway
BASE PRICE: • $36,375
BASE PRICE: • $15,045
AS TESTED: • $39,605
AS TESTED: • $15,795
PERFORMANCE: • Excellent 6-speed automatic transmission • Smooth engine and transmission • Comfortable highway ride • AWD works seamlessly • Fuel economy is OK, but not great
PERFORMANCE: • Surprisingly Smooth/Quiet Highway Ride — Not Choppy • Acceptable Power When Transmission Is Used Effectively • Smooth Shifting; Good Clutch • Very Nimble City Traffic Warrior
EPA RATINGS: • 39-mpg city/38-mpg highway BASE PRICE: • $34,400 AS TESTED: • $35,295 PERFORMANCE: • Outstanding fuel economy, we easily exceeded EPA estimates • Smooth highway ride • Auto Stop feature can be a little noticeable • Take off power on the leisurely side • Good handling and brakes
32 • Kitsap Peninsula Business Journal • KPBJ.com April 2013
2013 Mazda CX-9
COMFORT: • Comfortable seats with soft headrests • Stretch-out front legroom • Great, thick, contoured steering wheel with auxiliary controls • Good size sunroof • Tight backseat head and legroom • Flat rear seat floor for decent middle position comfort • Excellent sound system and navigation
COMFORT: • Excellent front legroom • Adjustable 2nd row seat tracks • Flat floor • Rear HVAC controls • Third row seat best for children • Third row access tight • High quality interior materials
UTILITY: • Trunk space obviously impacted by battery location • No folding rear seat • Flat trunk floor • Very small front door bins • No rear door bins
UTILITY: • Big cargo capacity with 3rd seat folded • Flat floor • Under floor storage compartment • No lift-over • Power tailgate • Big, deep glovebox, but no lock
WOW FACTORS: • Incredible fuel economy—we got over 46-mpg on the highway • High quality, comfortable interior WHINES: • Slow acceleration from a stop, especially in ECON mode • Some type of driver lumbar support would be nice BOTTOM LINE: • The new Acura ILX is the entry level Acura. It’s an upscale version of the excellent Honda Civic. The build quality and interior materials plus the hybrid’s outstanding fuel economy make the ILX Hybrid a nice mix of luxury and frugality. — Bruce Caldwell
WOW FACTORS: • Blind spot indicator mirrors • Rain sensing wipers • Handsome styling WHINES: • Rear hatch doesn’t open high enough for tall people • Info center on top of dash hard to rear on sunny days BOTTOM LINE: • The 2013 Mazda CX-9 is one of the sportier sport utilities around. It’s pleasant to drive, especially given its large passenger and cargo capacity. Styling is handsome inside and out. — Bruce Caldwell
COMFORT: • Excellent Front Leg And Headroom • Shoulder-Wise, It’s Like Flying Coach In A Cessna • Thick, Contoured Steering Wheel With Auxiliary Controls • Thinly Padded Rear Seats • Reasonable Rear Legroom If Front Seats Are Up A Little UTILITY: • Super Small Cargo Area Behind Rear Seats • Low Hatch Height, Narrow Opening, High Lift-Over • When Rear Seats Are Folded It Hampers Driver Legroom WOW FACTORS: • Crazy Wild Bright Lime Green Paint Called Jalapeño • Will Fit In Any Parking Space • Solid Construction, Quality Surpasses Size Expectations WHINES: • Tight Rear Seat Ingress/Egress • Front Seats Have To Be Very Far Forward To Fold Down Rear Seats BOTTOM LINE: • The New 2013 Chevy Spark Is So Diminutive That It’s Considered A Sub-Subcompact. The Build Quality, Ride, And Handling All Exceed Typical Econo-Box Expectations. The 2013 Chevy Spark Was A Pleasant Surprise For Its Size And Price. — Bruce Caldwell
2013 Honda CR-V: An ideal size city/country SUV rear seat position thanks to a flat floor. The rear seat has sliding tracks for cargo/passenger versatility. Front row legroom is excellent and headroom is good for everyone. Storage areas are large and abundant around the front seats. The center console bin is huge as are the door bins. Power points for all types of electronic devices are plentiful. The rear door bins are on the small side, but overall interior storage is excellent. All four doors open extra wide, but there is some rear wheel well intrusion. Like all Honda products the doors shut firmly with a quality sound and feel. The rear liftgate opening is large with a low lift over height for the extra low, flat cargo floor. The hatch will just brush the hair of people over sixfeet tall. The rear seats fold effortlessly, but they have a very slight upward slope. Cargo capacity is 37 cubic feet with the seats up and 71 cubic feet when folded down. The driver positioning and controls access is excellent. Honda does an outstanding job of driver ergonomics. The thick, contoured leather steering wheel had great auxiliary controls along with tilt and telescopic adjustments. A backup camera was a welcome safety feature. Under The Hood: A2.4-liter inline fourcylinder engine is the only available powerplant and the 5-speed automatic is the only transmission. Mechanically, all models are the same except for the choice of frontwheel-drive and all-wheel-drive. Honda’s Real Time 4-Wheel Drive System is an excellent one that’s ideally suited to city utility vehicles. It’s a seamless system that is applied as necessary. You concentrate on driving and the AWD system keeps you on the road. There is only a one-mile per gallon EPA advantage for the front-wheel-drive models, so we strongly recommend the AWD option. Besides being ideal for occasional nasty weather, the AWD models have a much stronger resale value. Behind The Wheel: The Honda CR-V is a solidly built car that holds the road well. The highway ride is comfortable, as one would expect from a passenger car. That makes perfect sense since that is how most owners use their CR-Vs. Braking is excellent. The CR-V has a big green “ECON” button that alters the engine throttle response and the transmission
The new Q50 continues Infiniti’s sports sedan performance leadership with a choice of a from page 30 refined 3.7-liter V6 with an estimated 325horsepower, or the Q50 Hybrid that is expected to have more than 350-horsepower and class-leading fuel economy. Both the Q50 and Q50 Hybrid are available with rear- or all-wheel drive, and each is combined with a refined 7-speed automatic transmission with available solid magnesium paddle shifters. A world’s first steering technology, Infiniti Direct Adaptive Steering™, electronically controls the Q50’s tire angle and steering inputs, transmitting the driver’s intentions faster than a conventional, mechanical system. Four different steering settings are offered, allowing customization by driver preference or road conditions. The Infiniti Q50 goes on sale at Infiniti retailers nationwide this summer. More information about this new luxury sports sedan can be found at www.infinitiusa.com/AllNew-Q50.
programming. This is the best mode for ultimate fuel economy. It works fine on long highway stretches, but does make the vehicle a little more sluggish in stop-and-go city traffic. When pushed hard, the four-cylinder engine can be a little buzzy. Acceleration is brisk for the curb weight (3342 lbs) and the engine horsepower (185 hp). Zero-to-sixty times in the mid-eight second range are common. Our biggest complaint about the driving dynamics concerned the electric power steering. It seemed a little vague and disconnected. Granted, the CR-V isn’t a
sports car, but we’ve driven other electric power steering equipped cars that felt much more responsive. Whines: A rear hatch that opened an inch or two higher would better suit us. We’re not crazy about the feel of the electric power steering. Bottom Line: There is a reason the 2013 Honda CR-V sells so well—it’s an outstanding compact sport utility and an excellent value. It’s a right-sized outside, generously sized inside multi-purpose vehicle with quality build features, good looks, excellent fuel economy, and strong resale value.
COME DRIVE THE
2013 HONDA CR-V
RUNNING
360-377-1100 520 West Hills Blvd., Bremerton • www.westhillshonda.com
April 2013 Kitsap Peninsula Business Journal • KPBJ.com 33
By Bruce Caldwell Most SUV owners rarely venture off paved roads. Their vehicles are far more capable than the conditions owners encounter. So, what we really have are multipurpose vehicles that have the ability to handle rare extreme driving conditions, but seldom do. On an everyday basis SUVs are contemporary station wagons. This reality is ideal for compact sport utility vehicles and crossovers like the just right sized 2013 Honda CR-V. The Honda CR-V has been a segment leader since its 1997 introduction. The 2012 redesign further cemented its sales champ position. The CR-V is the benchmark vehicle for this highly popular and competitive segment. The SUV market has been sliced into many subcategories and we think the CR-V could easily carry the mantle City Utility Vehicle. The CR-V is a study of efficient packaging—a reasonably sized, nimble outer shell that surrounds a spacious and comfortable interior. Its compact size makes parking easy, which is a major concern in crowded metropolitan areas. A compact size and highly efficient 2.4-liter four-cylinder produce mileage figures of 22-mpg city and 30-mpg highway. We saw high twenties fuel economy in mixed driving conditions. Walkaround: The Honda CR-V is unchanged for 2013. It remains one of the best-looking Honda utility vehicles. The design is smooth and uncluttered. The CRV looks (and is) substantial, much more so than the smaller first generation CR-V models, but it isn’t a big box like some full size SUVs. Styling is more citified than rugged, which works for us. The CR-V has a unibody construction and is available in either front-wheel- drive or all-wheel-drive configurations. It’s available in ten trim levels, which places MSPR prices from the very low twenties to just over $30,000. Add in Honda’s excellent quality and resale value and the CR-V is a solid investment. We tested the CR-V 5DR AWD EX-L NAVI, which a lot of letters that add up to top-of-the-line. Features included heated power leather seats, dual-zone automatic climate control, upgraded sound system, 17-inch wheels, and a power sunroof. Interior: The CR-V interior is roomy, comfortable, and easy to access. Accommodations are ample for five passengers. Even adults can fit in the middle
Car buyers visiting showrooms these days have done their research
34 • Kitsap Peninsula Business Journal • KPBJ.com April 2013
By Tim Kelly, Editor When potential car buyers walk into his showroom at Advantage Nissan in Bremerton, sales manager Chuck Capps knows they aren’t just browsing the shiny new vehicles on display to see what strikes their fancy and might fit their budget. That’s a notion from yesteryear. These folks are more likely on a wellresearched mission to get a specific car, truck or SUV they’ve already chosen, at a specific price they already know as well. “They know the models they want, they know the dealership they want to do business with,” Capps said. “They’re going to know more than some of the sales people.” The internet offers a wealth of information, so customers in the market for
a family sedan, for example, can get detailed comparisons of the Nissan Altima and Ford Fusion. A buyer with his or her sights set on a midsize 4x4 SUV can see how the Honda Pilot stacks up against the Nissan Pathfinder. Along with all the info on engine specs, gas mileage, available options and pricing, there are plenty of consumer reviews as well. And when a customer decides on a certain vehicle, an online search will show where to find, say, a marine blue 2013 Subaru Forrester with all-wheel drive for less than $25,000, within a 30-mile radius of the customer’s address. “You’re kidding yourself if you don’t think the Internet makes a big difference,” Capps said. “Customers will know what we pay for a car. There’s no secrets anymore.”
But dealing with more knowledgeable customers who have done their research is a good thing, said Steve Gould, general sales manager at Bruce Titus Ford in Port Orchard. “It streamlines the process,” he said. “It’s not so much a journey of discovery to figure out what car they need.” That makes for a smoother transaction, he added, that takes less time for the salesperson and the buyer. “It’s easier and quicker for the customer, and the biggest complaint they typically have is that (the process) takes too long,” Gould said. Even with all the online information available to buyers, Capps said most people still like to come into a dealership showroom to check out the vehicle they’re
thinking of buying. “They still want to touch it, drive it, smell it,” he said, adding that as a salesman, he still plays a key role in reinforcing the customer’s research-based decision to close the deal. “I’ve got to know my product inside and out, and I’ve got to know my competition’s product inside and out. I’ve got to know what makes our vehicle a better choice for the consumer,” Capps said. “It’s the Information Age, not the sales age. The cars sell themselves.” What a good salesperson often is able to do, he noted, is find a customer’s desired vehicle with more features and options than they anticipated would be within their budget, or help customers qualify for more affordable financing arrangements. “They’re more informed when they come in, but they still want to deal with a person,” he said. “It’s still a people business.” The shift in the dynamics of car sales also applies with used cars. Customers looking for a used vehicle are just as likely to have done extensive online research before they talk with a salesman. “We get more and more people in who are not looking for what me might have, but already know what we do have,” Gould said. So the starting point with that type of customer is well-defined, with no preliminary “What are you looking for” discussions needed. “If a salesperson is not having to investigate what they’re going to use (a vehicle) for,” he said, “then you’ve already narrowed it down to maybe 15 cars on the lot to choose from rather than 150.” That also has steered dealerships to change how they advertise their inventory of used vehicles. “It used be we could advertise we had 20 F150s in stock, but now we have to advertise every car individually and specifically,” Gould said. “We have to list what each individual vehicle has, what equipment and how many miles, or the customer moves on. “They know they want a Lariat package and 30,000 miles and leather interior.” He’s been in sales for 20 years, and recalled the initial skepticism among salespeople about the internet’s impact on Buyers, page 35
2013 Chevrolet Volt
2013 Honda Accord Sport
MODEL TESTED: • 2013 Chevrolet Volt 4dr Sedan
MODEL TESTED: • 2013 Honda Accord Sport 4DR Sedan
ENGINE: • Electric motor 149-hp, 273-lb/ft • 1.4-liter 4-cylinder gas engine, 84-hp, 92-lb-ft
ENGINE: • 2.4-liter VTEC 4-cylinder, 189 hp, 181 lb/ft
TRANSMISSION: • CVT automatic, Front Wheel Drive
TRANSMISSION: • CVT automatic, Front Wheel Drive EPA RATINGS: • 26-mpg city/35-mpg highway BASE PRICE: • $24,190 AS TESTED: • $24,980 PERFORMANCE: • New 4-cylinder engine is economical, smooth, and powerfu • ECO feature adds to fuel economy using regular gas • CVT has better fuel economy than 6speed manual • Surprisingly fun to drive for a midsize sedan COMFORT: • Comfortable, supportive seats, with power lumbar feature for driver • More rear legroom than previous Accords • Large, clear instrumentation, and simple controls • Easy ingress/egress with large door openings
BUYERS
TOURISM
from page 36 provide local businesses and governments with a reliable stream of new sales, tax revenues and jobs. The Kitsap Peninsula Visitor & Convention Bureau has spent the past three years putting in place the tools: a successful regionwide branding campaign, “the Natural Side of Puget Sound;” a powerful website that attracts an average of 60,000 visitors a month; and co-marketing partnerships. The KPVCB collaborated with Kitsap County and North Kitsap Trails Association to create the Kitsap Peninsula Water Trails, recognized by the national parks system. American Cruise Lines — the largest operator of small cruise ships in the U.S. — added the Kitsap Peninsula and Poulsbo to its eight-day/seven-night Puget Sound Tour, which is new for 2013.
WOW FACTORS: • Spacious, comfortable interior • High quality fit and finish • Great resale value WHINES: • Folding rear seat doesn’t fold very flat and is noticeably higher than the trunk floor • For a so-called “Sport” model, the styling is pretty conservative BOTTOM LINE: • With 19 different trim levels and two powerplant choices (4-cylinder and V6) there is seemingly an Accord for about everyone. There’s a reason the Accord is a top seller — consistent quality, dependability, easy personalization and value. — Lary Coppola
advertising,” he said. “Eighty-five to 90 percent of my advertising budget is Internet now.” One thing that hasn’t changed, though, is that the business is still about taking care of the customer, Capps said. Even with all the information car buyers are armed with when they step into the dealership, they understand both sides of a transaction. “A fair deal is still in the eye of the beholder,” Capps said. “People want you to make a profit, they just don’t want you to rip their head off.”
BASE PRICE: • $39,145 AS TESTED: • $43,375 PERFORMANCE: • Smooth and quiet (almost too quiet in electric mode). Four-hour recharge rate with 240-volt charging station. Nontraditional brake feel. Seamless transition between electric and gas modes COMFORT: • Excellent front passenger room • Great long distance comfort for front passengers • Very tight rear seat, low ceiling, limited knee room UTILITY: • Modest cargo capacity • High lift-over • Below average size interior storage bins
WOW FACTORS: • Phenomenal fuel economy • Very high tech; well executed • 8-year/100,000 mile battery/Voltec components warrant WHINES: • Slow recharging (12-15 hours) on standard household current • Strictly four-passenger due to huge center tunnel • Information display borders on overload • Odd, electronic emergency brake BOTTOM LINE: • The 2013 Chevy Volt is one electric vehicle that makes sense for our expansive country thanks to its gasoline backup engine. Chevrolet calls the Volt an extended range electric vehicle and that’s a perfect description. It provides all the benefits of an electric vehicle without the range anxiety. — Bruce Caldwell
COME DRIVE THE
2013 HONDA ACCORD
With the recent and proposed reductions in defense spending in all sectors including meetings, lodging and travel, now is the time to aggressively market the Kitsap Peninsula as a unique destination for leisure travelers from the Puget Sound and around the world. With the increase of facilities and venue assets and resources, we can be more aggressive about B2B marketing strategies to attract larger, multi-day private sector conferences, meetings, business expos and tournaments. Tourism is definitely a bright light in Kitsap County's economic picture and future. • Patricia Graf-Hoke is executive director of the Kitsap Peninsula Visitor & Convention Bureau. The bureau was founded in 1983 and is a 501(c)6 nonprofit responsible for marketing the Kitsap Peninsula to attract visitors and promote economic development. Offices are located in Silverdale. Website: VisitKitsap.com.
360-377-1100 520 West Hills Blvd., Bremerton • www.westhillshonda.com
April 2013 Kitsap Peninsula Business Journal • KPBJ.com 35
from page 34 the car business. It was regarded as outrageous the first time a dealership posted a new car invoice online, he said, “but it’s completely transformed the way you sell cars.” Capps, who started working as a teenager washing cars at the Nissan dealership his father owns, also said marketing has changed significantly in the digital age. “There’s been a huge change in
UTILITY: • Large trunk with flat floor and wide opening • Lots of interior storage bins and pouches
EPA RATINGS: • 98-mpg electric (38 mile range)/37mpg gasoline only
Publisher Lary Coppola Editor Tim Kelly 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 Don Brunell Dan Weedin Julie Tappero Jason Parker
36 • Kitsap Peninsula Business Journal • KPBJ.com April 2013
Press Releases Email to pressreleases@KPBJ.com
The Kitsap Peninsula Business Journal is a special interest publication dedicated exclusively to providing news, information and opinions to the business communities of the Kitsap and Key Peninsulas, and North Mason County. It is published monthly by Wet Apple Media. Copyright, 2013, with all rights reserved. Postage is paid at Tacoma, WA. The Kitsap Peninsula Business Journal is read by more than 26,000 business, professional, political and military leaders in Kitsap, Pierce, and Mason counties. Additional copies are available for $1.50 each. Annual subscriptions are available for $25. Reproduction or use of any editorial or graphic content contained herein in any manner whatsoever without the expressed written consent of the Publisher is strictly prohibited. The Kitsap Peninsula Business Journal is proudly composed using Apple Macintosh® computers and printed by The Kitsap Sun, Bremerton, WA. Views expressed herein are strictly the opinions of the authors and do not necessarily reflect those of the advertisers or ownership of The Kitsap Peninsula Business Journal. Wet Apple, Inc. Post Office Box 1101 • Port Orchard, WA 98366 (360) 876-7900 • (800) 733-7990 Fax: (360) 895-2495 Website: www.kpbj.com
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
Local tourism industry enjoys building spree By Patricia Graf-Hoke, Kitsap Peninsula Visitor & Convention Bureau Tourism generates more than $260 million a year in sales and taxes and is responsible for 3,500 jobs, making it the third-largest economic sector in Kitsap County. It’s also one of the fastest-growing industries and creating a boon of construction, public works, park and retail projects along with hundreds of new jobs. These are not small projects either, but major, long-term investments in our local tourism infrastructure, providing Kitsap with more competitive and marketable tourism assets. Among the largest projects is the new 28,000-square-foot conference center planned by Port Madison Enterprises (PME) as part of the Suquamish Tribe’s fiveyear tourism expansion program. The construction plan includes 100 more hotel rooms for Clearwater Casino Resort, a 400car parking garage, and upgrades of several restaurants. PME recently opened the new 22,000-square-foot clubhouse and restaurant at White Horse Golf Club. Last year the Port Gamble S’Klallam Tribe opened its new 52,000-square-foot casino near Hansville, and purchased the world-renowned Heronswood Gardens created by internationally known gardener Dan Hinkley. The plan is to reopen Heronswood as a tourist attraction and eventually build a lodge and meeting venue similar to the Sleeping Lady Resort in Leavenworth. Another long-range construction and
• For a list of tourism-related projects that are adding to Kitsap Peninsula’s expanding tourism infrastructure, check the online version of this story at kpbj.com. • The monthly column by Kitsap Economic Development Alliance director John Powers is online at kpbj.com.
tourism investment project still in the works is expansion of historic Port Gamble. Plans include lodging, retail, and more visitor amenities. Kitsap County and other leaders are also working together to save nearly 7,000 acres of Pope Resources land that has become a popular playground for adventure sports enthusiasts from around the region and the U.S. In May and June, Port Gamble will host the one-day Stottlemeyer 60/30 Mountain Bike Race, which in just three years has grown from 46 riders in 2010 to nearly 500 riders accompanied by 600 family and friends in 2012. It is now the largest mountain bike race in Washington state. A three-day mountain bike team race is planned for June 28-30 and promises to attract 300 riders plus family and friends to the Kitsap Peninsula. On the retail scene, this fall REI — a world leader in outdoor recreation gear and clothing — will open a 25,000-square-foot store in Silverdale, located in the heart of the Kitsap Peninsula. This store will be REI’s 129th location and affirms that Kitsap Peninsula Visitor and Convention Bureau’s branding strategy to market the region as a mecca for adventure sports and ecorecreation is on target. With 4.7 million members worldwide, REI will attract
thousands of shoppers and visitors to the region and the company’s global marketing will boost awareness about outdoor recreation activities and events on the Kitsap Peninsula. Other tourism-related enhancement projects recently completed or in the works include construction of the new Bainbridge Island Art Museum and revitalization of Winslow Way. Bremerton’s construction projects include the 10-screen SEEFilm Cinema and numerous street beautification and the bridge-to-bridge trail projects. The City of Port Orchard recently cut the ribbon on the revitalized Water Street public boat launch and started construction of the Bay Street Pedestrian Pathway and expansion of the downtown Waterfront Marina Park. Plans are also under way to open the county’s first year-round farmer’s market. The Silverdale Beach Hotel just completed a total upgrade and is now the Silverdale Best Western Plus. The Kitsap Conference Center in Bremerton is looking into expanding to add another 7,000 square feet of event, break-out and exhibition space that will enable it to compete for multi-day conferences that are being lost to competitors in Olympia, Tacoma and Seattle. Large transportation projects include the $6 million upgrade of the Clear Creek bridge on Bucklin Hill Road, and intersection and road expansion at Suquamish Way and State Route 3, both improving access for residents and visitors. All of these construction and development projects provide ample evidence that tourism is an untapped economic growth industry that continues to Tourism, page 35
Honoring Booth Gardner disorder marked by tremors and loss of coordination. In true form, he worked tirelessly to raise awareness of the disease, served as the first chair of the Northwest Parkinson’s Foundation and helped establish the Booth Gardner Parkinson’s Care Center in Kirkland. In 2005, Booth and I hit the road for a series of editorial boards in support of federal class-action lawsuit reform. Even though he was beginning to feel the effects of Parkinson’s, I was amazed at his ability to captivate people with his arguments, logic and goodwill. With all the hard work, we managed to have fun. We both loved hamburgers, and he knew where the best hamburger places were — we tried them all. Looking back, I realize that this trip was like his swan song, a barnstorming tour of his beloved state. My fondest memories are of Booth’s humility and humor. The first time he called our house after becoming governor, one of our young children answered the phone and yelled, "Dad, there’s some guy named BOOF who wants to talk to you!" We had lots of laughs over that. Even though Parkinson’s ultimately took Booth’s life, it can never erase his legacy as governor or the profound effect he had on those who knew him. If we truly want to honor Booth Gardner, we can be more respectful to those we disagree with and remember that our goal should be to work together to get things done. • Don Brunell is president of the Association of Washington Business. Formed in 1904, AWB is Washington’s oldest and largest statewide business association, and includes more than 8,000 members representing 700,000 employees. AWB serves as both the state’s chamber of commerce and the manufacturing and technology association. While its membership includes major employers like Boeing, Microsoft and Weyerhaeuser, 90 percent of AWB members employ fewer than 100 people. More than half of AWB’s members employ fewer than 10. For more about AWB, visit www.awb.org.
WILL
from page 38 As an editorial on I-1185 in The News Tribune of Tacoma noted last fall: “Welcome to Washington, where a big schizoid chunk of the electorate seems to want a generous state government — without spending another nickel on it.” So legislators, even though freed from the “tyranny of the minority” over tax bills, still face a perennial budget squeeze and must tread cautiously as ever when looking for ways to raise revenue needed for schools, transportation and other vital public services. And should any of them be emboldened by the recent court ruling to say “Yahoo!” and rush to throw open the floodgates of taxation, well, the will of the people looms again in the next election. • Tim Kelly is editor of the Kitsap Peninsula Business Journal.
April 2013 Kitsap Peninsula Business Journal • KPBJ.com 37
By Don C. Brunell, Association of Washington Business The tributes to former Gov. Booth Gardner, who died March 15 at the age of 76, remind us of a better time. Throughout his political career, Booth was known for his respectful demeanor, good humor and dedication to consensus. That is in stark contrast to today’s reality. Now, partisan rancor is the norm in a high-stakes blood sport where the only goal is political advantage, and people who hold opposing views are assailed as enemies. This scorched earth mentality has become so pervasive, people assume it’s the nature of politics. But that’s true only if we continue to allow it. If the politicians and others who laud Booth Gardner genuinely want to honor him, we can do so by emulating him — by tempering our behavior and that of our colleagues. It is easy to praise a good man; it is much harder to be like him. I always considered Booth a friend, even though our friendship got off to a rough start. When he ran for governor in 1984, I was working for Crown Zellerbach, and we supported Gov. John Spellman (R) for reelection. When Booth won, he could have given us the cold shoulder. That didn’t happen. In fact, it was just the opposite. For Booth, the election was over, and it was time to govern. His first priority was always to do what was right. That commitment would be sorely tested in his first term. In 1986, my first year at the Association of Washington Business, the Legislature passed a hotly debated and divisive lawsuit reform bill. The measure was intended to curb lawsuit abuse to reduce the cost of liability insurance. It was supported by a coalition of business owners, local governments, schools, hospitals, doctors and insurance carriers. But it was vigorously opposed by trial lawyers — one of the Democratic Party’s most powerful constituencies. Democratic legislative leaders aggressively pressured Booth to veto the bill. Before making his decision, the governor met with supporters and opponents. When he asked me point-blank why he should sign the bill, I said, "Governor, it is the right thing to do. We need to find a way to make liability insurance more affordable and available, and this bill does that!" After listening to all sides and stewing over the decision for days, he signed the bill, incurring the wrath of many in his party. But his decision wasn’t based on partisanship, it was based on what he thought was best for Washington. Booth’s quiet demeanor belied a strength of character that served him throughout his life. In 1995, he was diagnosed with Parkinson’s disease, a progressive and debilitating neurological
Marketing the Bremerton Marina and other things Recently, Scott Alprin of Emerald Yachts, the Port of Bremerton’s main tenant at the money-losing Bremerton Marina, proposed a plan to port CEO Tim Thomson and marina operations manager Kathy Garcia for marketing the facility. Alprin, who has two locations — Bremerton and Gig Harbor — noted that less than 5 percent of his sales currently come from the Bremerton Marina location, and said if nothing is done to increase business there, he’ll close that operation down when his lease expires in September. But he added a caveat, saying that if someone — himself or another person — does something to effectively market the marina this coming boating season (which opens May 4), he’d be willing to stay. Alprin’s proposal called for four, freemoorage “open house” weekends over the summer — complete with smiling hosts greeting visiting boaters and helping them tie up, plus free Bar-B-Qs. The port’s costs would start at $10,000 — mostly spent on direct mail. Alprin’s plan also specifies a retainer of $10,000 a month be paid to him from April through August, for a total of $60,000. He says he anticipates thousands of dollars of return for the port from new moorage fees, and claims he can fill the marina in three years. His stated goal is 12 to 15 new moorage contracts per free-moorage weekend. Unless he’s planning on hiring a crew of high-pressure timeshare condo salesmen, am I the only one who thinks this is an overly ambitious expectation?
His proposal offers little more than mundane ideas. What's really needed is a professionally crafted, comprehensive marketing plan — with measurable results. Any plan must outline a detailed strategy of exactly how to identify and reach boaters interested in permanent LARY COPPOLA moorage, or becoming regular The Last Word return visitors. Offering free moorage and free food may attract some visitors — if they know about it. Getting the word out to the strongest prospects that such events will even take place, and when, is the key. Alprin’s proposal doesn't address communicating that message — which is the most critical component for success — by any other method than direct mail. That expensive, shotgun approach just isn’t going to get it done as direct mail has a welldocumented response rate of only about 2 percent. Even if every single registered boat owner in the Puget Sound area were direct mailed, when the time comes to spend $100-plus in gas to visit Bremerton — even for free moorage and hot dogs — less than that 2 percent will actually show up. As a boater who has stayed at the Bremerton Marina more than once, it truly is a pretty nice facility — especially in comparison to many others in the region.
However, the marketing plan as outlined offers absolutely nothing extraordinary to attract boaters, nor gives them an incentive to visit — much less motivate a dozen people a weekend to sign on the dotted line. While I have serious doubts about the effectiveness of Alprin’s proposal, it is refreshing to see someone at least wanting to actually do something besides whine about how much money the marina loses. However, his plan as outlined basically throws money at the problem without a realistic expectation for return on investment. Part of the port's financial problem is at least one commissioner who adamantly refuses to understand that money spent effectively on targeted advertising and marketing (reaching those people most likely to buy your product or service) is an investment — not an expense. In this age of 21st-century communication, targeted demographic marketing is a very predictable science, with well-established ROI benchmarks. We believe it's time to elect port commissioners and hire administrators who understand 21st-century marketing and business practices — and aren't afraid to embrace them. Since leaving office as Port Orchard’s mayor at the end of 2011, I’ve made it a point to not publicly comment on the city’s politics — or what passes for management these days at City Hall. However, the recent push to establish late-night foot ferry service between downtown Port Orchard and Bremerton is a
misguided non-solution to a much larger problem than backers want to admit. The main driver is South Kitsap businessman Don Ryan, president of the Port Orchard Bay Street Association. He’s a used car dealer, who also owns a hair salon and a downtown bar. In addition, he’s promoting the proposed indoor farmer’s market, which he’s convinced people will jumpstart Bay Street, the town’s main drag — which has more empty buildings than occupied ones. In our view, Ryan’s grasping at straws. He blames Kitsap Transit’s cut in evening service for downtown’s decline. That’s a red herring. Kitsap Transit cut service because not enough people rode it for it to pencil. That proves people won’t take an evening ferry from Bremerton to come eat and drink in downtown Port Orchard — or vice versa. Aside from Ryan’s bar and Moondogs, or dinner at Amy’s on The Bay, there isn’t much to do — and not a lot else open at night except bail bond offices and tattoo parlors. What’s left on Bay Street aren’t the kind of establishments that do business at night, and by seven, downtown is basically closed up. Port Orchard would be better served spending that money restoring funding to the Kitsap Peninsula Visitor and Convention Bureau — which produced a tremendous bang for the buck by actually drawing people downtown — both day and night — until the furtive politics surrounding the city’s Lodging Tax Advisory Committee slashed its funding in favor of squandering money on self-serving ideas like Ryan’s.
38 • Kitsap Peninsula Business Journal • KPBJ.com April 2013
Spare us the lamentations about ‘will of the people’ The will of the people. We heard that concept invoked a lot by indignant critics of the Washington Supreme Court’s recent ruling that Initiative 1053 — approved by voters in 2010 as the latest iteration of the two-thirds approval requirement for the Legislature to raise taxes — is unconstitutional. Was the will of the people thwarted? And should that never happen? I’d answer no to both questions (and I’m a power-to-the-people guy to my core). It’s hardly unprecedented for a state supreme court to block voter-approved initiatives because they are unconstitutional (and the odds of that seem greater when a Tim Eyman-sponsored initiative is involved). Nor is it surprising that our state’s high court ruled the supermajority requirement is out of line with our state’s constitution. “Supreme Court denies the will of the people” was the misleading headline on the conservative Freedom Foundation’s website announcing the court’s ruling. The court explicitly stated that its 6-3 ruling was not a judgment on whether the two-thirds rule is a good idea; likewise, the
justices made clear it’s not “game over” for passing such a legislative restriction. The ruling does say that requiring more than the constitutionally established simple majority to pass legislation — possibly even higher than twothirds approval for certain bills — is “antithetical to the notion of a functioning government and should be TIM KELLY rejected as such.” Editor’s View However, the justices also noted that their decision “is not a judgment on the wisdom of requiring a supermajority for the passage of tax legislation.” The majority decision concludes by saying “Should the people and the legislature still wish to require a supermajority vote for tax legislation, they must do so through constitutional amendment, not through legislation.” So people, thy will is not thwarted; a more rigorous course, however, is required to impose the supermajority rule that the
Supreme Court warned could enable “a tyranny of the minority.” Supermajority supporters such as the Washington Policy Center’s Jason Mercier note that the state constitution includes numerous voter-approved supermajority requirements for certain actions by the Legislature. The court acknowledges as much in its ruling, but notes that those and “the seven supermajority requirements in the original constitution were all relegated to special circumstances, not the passage of ordinary legislation.” Mercier, naturally, insisted the Legislature should pass SJR 8205, a resolution proposed by Sen. Pam Roach (R-Auburn) to refer a constitutional amendment for a supermajority to a statewide vote. That will only happen if two-thirds of both the House and Senate vote to approve the resolution, which seems unlikely, but Mercier nonetheless sounds a familiar refrain to pressure the politicians. “There is nothing for lawmakers to fear by sending SJR 8205 to the voters,” he wrote on his WPC blog, “but the will of the people.” Another misleading take on the Supreme
Court’s overturning of the supermajority rule was expressed in a Feb. 28 Associated Press story when the ruling was announced. The lead said: “The Washington Supreme Court on Thursday made it easier for the Legislature to raise taxes.” That incorrectly implies intent, and is surely why the lead was changed in later versions of the story. What the court did was rule on a legal challenge to I-1053, and the majority decided the two-thirds requirement was unconstitutional. None of that mattered to Roach — a legislator not known for sublety, to say the least — who was widely quoted in media coverage as saying the court ruling on I-1053 had opened the "floodgates of taxation." The Legislature is keenly aware of how popular the supermajority initiatives have been with voters over the years — the latest, I-1185, was approved by a wide margin in November — but that Legislature also has to craft a budget this year that will include substantially more funding for public schools, as required by another state Supreme Court ruling. Will, page 37
Membership in the National Kitsap & Bath Association is a sound investment in the success of your business.
A K I T C H E N T H AT W O R K S L L C
“A Kitchen That Works LLC has been an active member of the National Kitchen and Bath Association and the Home Builder’s Association of Kitsap County. As a full service residential design-build firm, we can categorically say that both organizations have provided our firm with valuable educational opportunities as well as lucrative project referrals. We would encourage anyone in the building trade to attend a NKBA Olympic West Sound Chapter meeting to network with members and expand their referral base, hone their marketing skills and increase their product knowledge.”
“My company, DeMane Design LLC, is an interior design firm who specializes in kitchens and baths in the Puget Sound area. As an active NKBA member, I’ve made connections that have helped develop many aspects of my business over the years. The NKBA, empowers us, as professionals in the field with a vast network of education, product knowledge and networking opportunities. We have local chapter meetings, but, we also connect online. For me, the exchange of ideas and information with others has been invaluable, informative and refreshing.”
— Molly McCabe A K B D , C G P, C A P S
— Nancy Finneson A K B D , C A P S , A L L I E D A S I D
“Moving my design business to the northwest provided an opportunity to meet a whole new community of fellow designers, builders & trade professionals. Joining the NKBA helped me do that as well as support my continuing education and product knowledge.”
“I’ve found being a member of the local NKBA chapter keeps me in touch with allied professionals through chapter meetings. They can also be a source of revenue that I may have never found.”
DEMANE DESIGN LLC
— Bill Wyman
— Debbie Hollyer
C R E AT I V E C O U N T E R T O P S , I N C .
H O L LY E R D E S I G N S T U D I O
To join NKBA or to find a NKBA certified professional go to nkbaolyws.org
Realize your potential. Quality service and a commitment to the community.
Call 253-272-7099 800-495-3175 kelleyimaging.com
April 2013 Kitsap Peninsula Business Journal • KPBJ.com 39
• Print • Scan • Document Management