July 2013 Vol. 26 No. 7
The Voice of Kitsap Business since 1988
Robotic surgery — Healthcare Quarterly, p. 8
After shoreline deal, what’s next? Linda BerryMaraist (left), Patty Graf-Hoke (center) and Sandra StaplesBortner all have been involved in the Kitsap Forest & Bay Project’s efforts to acquire land from Pope Resources. They are shown with Jon Rose, president of Pope subsidiary Olympic Property Group, on the Port Gamble Bay shoreline that’s part of the first block of land that will be purchased for conservation.
Bainbridge Island’s new work of art, p. 30
Inside Special Reports: Healthcare Quarterly, pp 8-13 Environment, pp 28-30 People, pg 2 Financial, pp 26, 27 Human Resources, pg 14 Automotive, pp 34, 35 Editorial, pp 36-38 Home Builders Newsletter, pp 19-22
Tim Kelly photo
Coalition pushing for acquisition of forestland in bay’s watershed By Tim Kelly, Editor Preserving forestland might mean cutting the trees. That’s not really the paradox it seems, at least regarding the land the Kitsap Forest & Bay Project is working to acquire. That land is five separate tracts owned
by Pope Resources totaling nearly 7,000 acres, and the first purchase agreement between the company and Forterra (which handled negotiations for the Kitsap Forest & Bay Project) was signed in late May to buy a critical piece. The parties agreed to a $4.6 million sale of the 535-acre block that stretches for 1.5 miles along the Port Gamble Bay shoreline south of the former sawmill site that is being cleaned up. That was an achievement celebrated by Cover Story, page 4
Grab Plants: A 10-year old ‘new venture’ for landscaper By Lary Coppola Ken Perry, owner of Team Innovative, one of Kitsap's top landscaping firms, is living up to the “innovative” moniker with a new business — Grab Plants. Perry, who has been in the landscape business since 1989, said this is actually a new evolution of what he termed a 10-year old venture. “Ten KPBJ photo years ago, the original Volunteers from Hospice of Kitsap County help out on a recent Grab Plants concept weekend at Grab Plants. was to be an online nursery. In fact, the logo we're using is the original logo we designed back then." Perry has had some interesting detours from working the land along the way, including serving as the CEO of a now defunct local software firm — Phynity Software. Grab Plants, page 6
Gig Harbor artist wins second international portrait award Gig Harbor sculptor Mardie Rees recently received an Exceptional Merit Award from the Portrait Society of America for her portrait bust of her young daughter. The winners of the prestigious annual competition were announced in Atlanta at the Society’s International Portrait Competition awards banquet in April. Rees’ work, titled La Petite Fleur (“The
Little Flower”), was among 20 finalists selected from a field of more than 1,800 paintings and sculptures. Rees was one of just two sculptors who won awards. The finalists’ work will be featured in The Art of the Portrait Journal and International
Artist magazine. “There are so few sculpted portraits of young children that exude what we all know and love about children,” Rees said. “I’m always looking for the beauty of Mardie Rees innocence and a sense of wonder.” This is the second time Rees’ work has been recognized by the Portrait Society. In 2010, her portrait bust of a young woman
received First Honor award. Her work is being featured in three museum exhibitions this year, including the USC Fisher Museum in Los Angeles, where La Petit Fleur is on display. Currently, she is working on a commission for the U.S. Marine Raider Foundation. That piece — a memorial sculpture of three WWII Marine Corps Raiders and a war dog — will be placed inside the National Museum of the Marine Corps in Quantico, Va. For more information on the award, go to http://mardierees.com/journal/2013/5/ex ceptional-merit-award-at-the-internationalportrait-competition or contact the artist at mardie@mardierees.com or (253) 4056694.
2 • Kitsap Peninsula Business Journal • KPBJ.com July 2013
Mortgage loan officer joins Kitsap Bank staff in Gig Harbor Kitsap Bank has hired Todd Gainey to be part of its mortgage lending team as a Residential Mortgage Loan Officer. Gainey will be based out of the Mortgage Center at the Point Fosdick branch in Gig Harbor. He comes to Kitsap Bank with extensive experience in Todd Gainey all facets of lending, most recently with Anchor Bank. “Todd brings with him a wealth of experience in residential real estate lending,” stated Matt Kover, Senior Vice President/Manager of the Mortgage Loan Division. “We continue to see an increased demand for mortgage services in our area, and are confident that Todd and the rest of the mortgage team at Kitsap Bank will be able to meet our community’s growing needs.” Previously, Gainer was involved with Rebuilding Together in Thurston County, focusing on helping low-income families with maintenance and updates to their homes.
Bremerton native joins Shiers Law Firm office in Port Orchard The Shiers Law Firm announced that Brandon K. Miller has joined its Port Orchard office as an associate attorney. Miller, who grew up in Bremerton, graduated in 2007 from Gonzaga University with a B.A. in philosophy and graduated in 2010 from Seattle University School of Law. He previously worked as an associate attorney at Lane Powell in Seattle, where he focused on reorganizations and civil litigation in the firm’s bankruptcy and creditors’ rights group. In 2012, he moved back to Kitsap County, where he practiced criminal defense primarily in Bremerton. Miller’s practice focuses on criminal defense, commercial and real estate matters, family law, and civil litigation.
Heronswood will hold season’s second Garden Open & Plant Sale Heronswood, the world-renowned botanical garden in Kingston, will host another opportunity for plant lovers to visit the gardens during the second Garden Open & Plant Sale of 2013 on July 6 from 10 a.m. to 5 p.m. The first garden open tour and plant sale event in May drew over 2,000 people to Heronswood, which is owned by the Port Gamble S’Klallam Tribe. While plants from Heronswood won’t be available for purchase, nurseries from around the Puget Sound area will be on hand to offer a wide variety of unique and unusual plants perfect for home gardens. Featured nurseries include Far Reaches Farm, Naylor Creek, Sundquist Nursery, Dragonfly Farms Nursery, Keeping It Green, Chimacum Woods, Old Goat Farm, Windcliff, The Desert Northwest, Foxglove Greenhouses, Colvos Creek Nursery and Celestial Dream Gardens. This event will also feature special guests from Oregon — Dancing Oaks and Cistus Nursery. In addition to the vendor plant sales, visitors will be able to tour the garden and experience firsthand the progress being made in its renovation. The afternoon will feature a series of lectures, including presentations by master plantsman and Heronswood co-founder Dan Hinkley; Sean Hogan, owner of Portland’s Cistus Nursery; and past Northwest Horticultural Society president and frequent “Gardening with Ciscoe” guest Nita-Jo Rountree. Seating for each of the lectures is limited to first-come, first-serve. The Heronswood Garden Open &
Plant Sale is being hosted by the Port Gamble S’Klallam Foundation, a nonprofit organization that is dedicated, in part, to increasing understanding of Port Gamble S’Klallam’s rich cultural heritage. The foundation — along with a steering committee made up of plant enthusiasts, tribal leaders, and respected horticulturalists — has been charged with managing restoration and community outreach activities at Heronswood. Foundation director Laurie Mattson said Heronswood provides a unique opportunity to further an appreciation of tribal art, history and culture, while stressing the tribe’s commitment to education and environmental stewardship. With this in mind, every event at Heronswood will feature tribal artisans selling their work. One of the foundation’s goals is to install tribal-inspired art throughout the garden. The S’Klallam Singers will also perform throughout the day and local food vendors will be set. Admission to the plant sale and all lectures is free of charge. A donation of $10 is requested to take a self-guided tour of the garden. All proceeds will go towards the restoration and maintenance of the garden. Entrance for the garden will close at 4 p.m. The Foundation is planning another Garden Open & Plant Sale for Sept. 7. For more information about Heronswood, please visit www.Heronswood.com or Facebook.com/Heronswood. For more information about the S’Klallam Tribe, please visit www.pgst.nsn.us.
Kitsap Public Facilities District allots funding for regional projects
box and fence upgrades to Lobe Field #1; • $15,500 to North Kitsap School District/City of Poulsbo for Strawberry Field improvements; • $132,000 to NKSD/Poulsbo for storm water study and improvements at North Kitsap Regional Event Center.
Massage therapist moves to new location in Silverdale Bridget's Hands Massage Therapy & Maternity Support is now operating out of Mariner Chiropractic Center at 9621 Mickelberry Road NW, Ste. 108, in Silverdale. Owner Bree Grim offers birth doula services as well as specializing in therapeutic massage treatment of injuries and chronic pain conditions for all ages and stages of life, including pregnancy and postpartum. Her business was selected as Best Massage Therapy in the 2013 Best of West Sound ratings in West Sound Home & Garden magazine. For more information, go to www.bridgetshands.com or contact Grim 360-731-0291 or bree@bridgetshands.com.
Holly Ridge Center, a local nonprofit agency that provides early intervention services to children with developmental delays and employment services to adults with disabilities, will hold its 13th annual charity golf tournament on July 12 at McCormick Woods in Port Orchard. Proceeds from the fundraiser will help raise Holly Ridge Center’s operating funds and also build awareness of the agency’s community services to throughout the
Kitsap-Olympic Peninsulas. With prizes and auction items including overnight stays at Pacific Northwest resorts, the Holly Ridge Center Charity Golf Tournament is a fundraising event that helps hundreds of children and adults with disabilities throughout the region. Registration begins at noon, with a shotgun start at 1:30 p.m. Entry fee is $125 for an individual golfer, and sponsorship opportunities are available starting at $150. Entry fee is tax-deductible and includes an awards banquet. To register for the tournament, go to www.hollyridge.org or call 360-373-2536.
Grow your business with PTAC! KEDA’s PTAC — Procurement Technical Assistance Center Helps companies find and successfully achieve contracts for work with local, state and federal governments. Mary Jo Juarez, Business Consultant 30 years contracting experience with the federal government Call 360-377-9499 to set up your FREE business consultation Visit www.kitsapeda.org/ptac for resources and a complete schedule
Upcoming PTAC Classes: July 10th 9–11 am Aug 7th 9–11 am Aug 14th 9–11 am Sept 11th 9–11 am Sept 18th 9–11 am
Terminology for Contracts (KEDA) Government Contracting 101 (Port Angeles) Government Contracting 101 (KEDA) Putting Together a Successful Bid Package (KEDA) Marketing Your Business to the Government (Port Angeles)
Classes are FREE, but pre-registration is required! Register online at www.washingtonptac.org/events
Save the Date! Pacific NW Defense Symposium September 24 & 25 Kitsap Conference Center, Bremerton
Call
360-377-9499
for additional information 4312 Kitsap Way, Suite 103 • Bremerton
www.kitsapeda.org
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July 2013 Kitsap Peninsula Business Journal • KPBJ.com 3
The Kitsap Public Facilities District (KPFD) approved $400,000 in funding for expansion of the Kitsap Conference Center in Bremerton, and allotted another $250,000 among four other projects at the district’s special board meeting on June 10 in Silverdale. Kitsap Conference Center, which is owned by the city of Bremerton and operated under contract with Columbia Hospitality, plans to use the funding to help pay for renovations of the mostly unused third floor of the Kitsap Transit building, which is connected to the conference center. The city plans to sign a long-term lease with Kitsap Transit to use the third floor for additional meeting and banquet space for events booked at Kitsap Conference Center. The KPFD board’s other allocations for proposals from its partners in the three locations in Kitsap County where PFD funding can be utilized include: • $30,000 to Kitsap County Parks for purchase of the Gordon Field press box; • $70,000 to Kitsap County Parks for press
Holly Ridge Center hosts charity golf tournament at McCormick Woods
WHAT’S NEXT?
4 • Kitsap Peninsula Business Journal • KPBJ.com July 2013
from page 1 the broad range of stakeholders involved in the six-year effort to find a way to buy and conserve Pope’s land, which has long been accessible to the public for recreation. However, the next step may be the most crucial to achieving the goal of preserving forestland and maintaining public access to it for events such as mountain bike races that are becoming a significant tourism draw for the Kitsap Peninsula. The shoreline block, while larger than Dosewallips State Park on Hood Canal, represents only about 7 percent of the land Pope is selling and isn’t a prime spot for recreational use. It’s the adjacent block of 3,300 acres known as the Uplands, west of the bay and south of the town of Port Gamble, that contains a network of dozens of miles of forest trails for hiking, biking and horseback riding. But there are far fewer grants available for acquisition of uplands than for shoreline, and a major issue yet to be resolved for the Kitsap Forest & Bay Project is whether $5 million in state funding can be spent on acquiring the Uplands block or other tracts of Pope land for sale. The legislature last year approved a Department of Ecology grant of $7 million designated for supporting the cleanup and restoration of Port Gamble Bay. That funding is expected to be re-authorized in the 2013 state budget, and up to $2 million is going toward the shoreline block purchase. Pending final approval of some other grants, Kitsap Forest & Bay Project’s fundraising total could be as much as $14.8 million, and the coalition includes Ecology’s $7 million grant in that total. But an Ecology official said recently that the remaining $5 million in state funding is not guaranteed to go to the Kitsap Forest & Bay Project. Kathy Taylor, manager of the Aquatic
Conservation funding breakdown In addition to the Port Gamble Bay shoreline block and the 3,300-acre forestland block targeted for purchase in the Kitsap Forest & Bay Project, there are three other available tracts of Pope Resources land that the coalition would like to acquire for conservation. There’s a 366-acre block for expansion of the county’s North Kitsap Heritage Park near Kingston. Just west of the park is the 664-acre Divide Block. The proposed route of the Sound to Olympics Trail goes through both of those blocks and continues through the Uplands Block and Port Gamble Shoreline Block. The other tract is more removed from the rest of Pope’s land. The Hansville Block is an area of 1,764 acres north of the Port Gamble S’Klallam reservation on the east side of Port Gamble Bay. The grant funds paying for the $4.6 million purchase of the 535-acre shoreline property include: • National Coastal Wetlands Program — $1 million • Washington State Aquatic Lands Enhancement Account — $1 million • Washington State Wildlife and Recreation Program, Water Access category — $1.25 million • Washington State Department of Ecology — $2 million (or remainder) The rest of the pending funding the Kitsap Forest & Bay Coalition expects to be confirmed for land acquisition includes: • Washington State Department of Ecology — $5 million • Department of Defense Tribal Treaty Mitigation (through Port Gamble S’Klallam Tribe) — $3 million • Washington Wildlife and Recreation Program, Riparian Category — $1 million (for Divide Block) • Puget Sound Acquisition and Restoration — $350,000 (for Divide Block) • Washington Wildlife and Recreation Program, Urban Wildlife category — $392,000 (for Heritage Park Addition Block) • US Forest Service Community and Open Space Program — $400,000 (for Heritage Park Addition Block) • Salmon Recovery Funding Board — $100,000 (for Heritage Park Addition Block)
Lands Cleanup Unit in the department’s Toxics Cleanup Program, said the legislature stipulated that the $7 million must be used for “source control, habitat restoration, and cleanup sustainability” of Port Gamble Bay. Ecology is “compiling a list of projects
Kitsap Tours earns TripAdvisor’s Certificate of Excellence award Kitsap Tours announced that it has received a TripAdvisor Certificate of Excellence award for the third year in a row. The award, which honors hospitality excellence, is given to establishments that consistently achieve outstanding traveler reviews on TripAdvisor. Only the top-performing 10 percent of businesses listed
now” that could receive funding, Taylor said, although she would not say what else besides the Kitsap Forest & Bay Project is on the list. Jon Rose, who represents Pope Resources as president of its subsidiary Olympic Property Group and has been
on the travel website receive this award. To qualify for a Certificate of Excellence, businesses must maintain an overall rating of four or higher, out of a possible five, as reviewed by travelers on TripAdvisor, and must have been listed on TripAdvisor for at least 12 months. Additional criteria include the volume of reviews received within the last 12 months. Kitsap Tours has been the No. 1 attraction on Bainbridge Island (and
integral to working out a deal for conservation groups to preserve forestland, said he was “unaware of any other competing acquisition projects.” Other stakeholders said the same, including Kitsap County Commissioner Rob Gelder, who represents the county’s north district that includes the Port Gamble area. However, Gelder said in an email: “We understand that DOE is developing a roster of potential sites for restoration that will also lead to improved water quality in Gamble Bay and could be a use for the funds. However, we do not know the extent of what they are considering. “It was a decision by DOE to move in this direction.” Taylor said Ecology will convene a review panel in late August to evaluate and rank the projects for funding allocations. Two key figures in the Kitsap Forest & Bay Project — Sandra Staples-Bortner and Linda Berry-Maraist — said the coalition wants to broaden the focus of Port Gamble Bay restoration and shoreline preservation to include the entire watershed, so that acquisition of the 3,300 acres of forest above the shoreline block could be partially funded with Ecology grant money. “We think this is the time to do acquisition of land,” said Staples-Bortner, executive director of the Great Peninsula Conservancy. “Really all of this land drains down and is part of the watershed of Port Gamble Bay,” said Berry-Maraist, president of the North Kitsap Trails Association who’s also on the Poulsbo City Council. As chair of the Kitsap Forest & Bay Coalition, Staples-Bortner sent a recent letter making the case for watershed preservation to James Pendowski, Toxics Cleanup Program Manager at Ecology. “The Kitsap Forest & Bay Coalition believes that conservation of the Port Gamble Bay shoreline and forest is the best way to achieve the legislative goals of ‘habitat
surrounding area), with a 5-star rating, since it has been eligible for the award. “Kitsap Tours is thrilled to receive a TripAdvisor Certificate of Excellence,” said Jean Boyle, co-owner of Kitsap Tours. “We strive to offer our customers a memorable experience, and this accolade is evidence that our hard work is translating into positive reviews on TripAdvisor.”
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What’s next?, page 5
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WHAT’S NEXT?
from page 4 preservation, source control and clean up sustainability’ on Port Gamble Bay,” she said. “We believe purchase of these lands is what the legislature had in mind when the funds were allocated for this purpose.” It remains to be seen whether that approach will pass the test of providing "direct ecological benefit to Port Gamble Bay," as Taylor expressed it. Even if the $5 million from Ecology comes through as hoped, Kitsap Forest & Bay Project won't have enough for an outright purchase of the 3,300 acres above the shoreline block. That's where the trees come in. Rose, Staples-Bortner and BerryMaraist are working on a possible transaction that would include paying a certain amount of cash to acquire the land, but would allow Pope Resources to retain timber rights for another harvest cycle, and the value of the timber would defray the acquisition cost. Rose called that “a common-sense approach” that will leverage the value of the funds raised by the coalition for land acquisition. “By letting us harvest another rotation, the community’s money will go 200 percent farther,” he said. Still, Rose noted that for conservation advocates, “it takes a lot of guts to be able to accept tree cutting” as part of the strategy to reach their goal.
But that strategy also offers a potential long-term benefit. As the timber is harvested in years to come, the cut areas would be replanted with more diverse types of native vegetation. "Given that it’s a monoculture tree farm now," Berry-Maraist said, "what we could end up with is a much more natural forest." Michelle Connor, an executive vice president with Forterra who's led negotiations to acquire the Pope land, said such a transition would enhance habitat in the forest. "This is for the future," she said. "It's not so much forest conservation as forest land conservation, (for) the benefits forestland can provide to the public."
A cyclist relaxes after the recent Stottlemeyer 30/60 mountain bike race held on forest trails near Port Gamble on land owned by Pope Resources that is open for recreational use. Visit Kitsap Peninsula photo
Bainbridge Island bookstore offers lineup of author events in July
Authors, page 6
July 2013 Kitsap Peninsula Business Journal • KPBJ.com 5
Eagle Harbor Book Co. on Bainbridge Island has a full slate of author events scheduled in July, except for the week of the July 4 holiday. Here is what’s on tap: Sunday, July 7, at 3 p.m. — Pakistani native and Bellevue author Maliha Masood will join us to talk about her book Dizzy in Karachi — A Journey to Pakistan. Masood moved to the Pacific Northwest with her family when she was just turning 11, and she quickly became Americanized as she adapted to her new home. For 21 years she ignored heritage, but that changed after the 9/11 attacks. She could no longer avoid the tense standoff between Pakistan and America, and when she landed a summer internship in Islamabad in 2003, she was on her way back to do some root searching. This look at Pakistan and the ties with her new homeland are funny, insightful, and timely. Come for a great discussion with this writer and educator, whose lifelong goal has been to build bridges between the Islamic world and the West at the grassroots level. Thursday, July 11, at 7:30 p.m. — Seattle Times writer Lynda Mapes will discuss her recent book Elwha — A River Reborn. This is the compelling story of one of the largest dam removal projects in the world, and the effect it will have on a classic Northwest ecosystem. With stunning
GRAB PLANTS
from page 1 He was hired by Phynity for his financial and marketing skills, and tasked with building a business client base for its flagship product, Camelot Reporting. The software was considered cutting edge at the time, and easily adaptable to many different business uses. However, the company was seriously undercapitalized, and there wasn't enough money to market it properly, or do the required updates to the software itself as the advancements in computer operating systems evolved. "So I went back to doing what I knew how to do, so I could make some money again," chuckled Perry. Grab Plants is only open Saturdays and Sundays, and 15 percent of gross sales benefit a different local nonprofit each week. In return, volunteers from those groups water plants, greet customers and help with sales. But according to Perry, the number-one thing they do is drive sales through social media. "Every one of them has a database of supporters, a website and a Facebook page, and they use them to get their people to turn out." He should know. Perry has been active in nonprofits himself for more than 20 years, raising money for the Boys and Girls Club, St. Vincent dePaul, and ARC of Kitsap and Jefferson Counties among others. Perry said that the first two weeks they were in business, sales were slow, but after involving the nonprofits, sales increased 50 percent the first week, and have steadily grown from there. In order for an organization to qualify, it must be a registered nonprofit, assist with three of its own volunteers from 8:30 a.m. to 5:30 p.m. on both Saturday and Sunday, and have a 10-day minimum of promoting the fundraiser to the organization’s database. The first nonprofit to benefit was the Silverdale PeeWees, who earned $450. The following week, the
AUTHORS
6 • Kitsap Peninsula Business Journal • KPBJ.com July 2013
from page 5 photographs, as well as historic images, graphics, and a map, Elwha tells the interwoven stories of this region. Mapes’ book is inspiring and instructive, a triumphant story of place, people, and environment striving to come together. Sunday, July 14, at 3 p.m. — Kingston author and retired biology professor Ted R.
KPBJ photo
Ken Perry, owner of Team Innovative landscaping firm, is running a weekend business venture called Grab Plants at a temporary location on Clear Creek Road in the Poulsbo area.
Anderson will discuss his new book The Life of David Lack — Father of Evolutionary Ecology. Birders and science and nature lovers will enjoy this evening. Most people who have taken a biology course in the past 50 years are familiar with the work of Lack, but few remember his name. Almost all general biology texts produced during that period have a figure showing the beak size differences among the finches of the Galapagos Islands from Lack's 1947 classic,
Casual Waterfront Dining In Downtown Port Orchard Full Service Bar • Happy Hour Everyday • 3pm – 5pm
Central Kitsap Food Bank captured $540, and Perry says he now has most weekends through the end of summer booked. On the Saturday we conducted this interview, Hospice of Kitsap County was the beneficiary. Perry likens the business model of Grab Plants to that of retail giant Costco — offering a limited selection, desirable products, and maximum value for the money. He also says that part of the business model is that Grab Plants will never have a permanent location. "We will always move around to underutilized, vacant and abandoned properties, as we give back to the community.” Currently, Grab Plants is located on Clear Creek Road, at the site of the old Clear Creek Nursery. Ric Bearbower of Reid Real Estate and Dr. Dave Kessler own the property, and lease it to Perry on a sweat-equity basis. "We've cleaned up the property quite a bit and our presence has helped keep undesirables off the property as well,” Perry said. Bearbower strongly agreed, saying the arrangement is a win/win. He said he was shocked at the level of homelessness in Kitsap County, and before Grab Plants was there, they had squatters both on the property and inside the vacant building. In addition to offering plants and landscape supplies, Perry also offers something he calls "Landscape Packages To Go." There are two basic packages, one that includes any 20 groundcover plants, 10 small shrubs, 10 large shrubs, two trees and two specialty plants. The large package doubles those numbers except it offers five trees and five specialty plants. Both packages include consulting time on how and where to use the plants, and are priced at $799 and $1,499, respectively. For more information, stop by the current location at 11688 Clear Creek Road in Silverdale, call (360) 697-6858, or email info@getinnovative.net. Grab Plants is open on Saturdays and Sundays from 9 a.m. to 6 p.m.
Darwin's Finches. Lack's pioneering conclusions in Darwin's Finches mark the beginning of a new scientific discipline, evolutionary ecology. Tuesday, July 16, at 6 p.m. — Eagle Harbor Books will hold its monthly class on e-readers and e-books. Many people are not aware that e-books are available through many local independent bookstore websites, such as Eagle Harbor Books, and that we sell Kobo e-reader devices at the bookstore. You can also buy books through us using smartphones, tablets, and most other eReaders. You can bring in your ereader and/or your questions, and we'll help you get set up so you can buy e-books locally (or borrow them from the Kitsap Regional Library). Sunday, July 21, at 3 p.m. — Bainbridge
author Barbara Winther and renowned Northwest artist Duane Pasco will be here to discuss Duane Pasco — Life as Art. This gorgeous volume chronicles Pasco's journey as an artist and the transformation of his work over the last 50 years. His art — masks, boxes, bowls, rattles, panels, poles and sculpture — is beautifully presented in photographs. Stories reveal his development as a leading artist in the Northwest Coast Native art traditions and the scope of his influence on the rise of contemporary Northwest Coast Native art in Canada and the United States. Winther is the coauthor of the book. All events are free and open to the public. Customers who prepurchase books at Eagle Harbor will have priority seating at author events. For directions or information, call 206-842-5332.
Kitsap ag group’s meeting features talk on backyard poultry
or an old pro, this meeting will have something for everyone. The public iss invited to learn how to raise better and healthier backyard chickens for poultry, eggs, fun and more. Boyle with the Kitsap Poultry Growers Co-op also will be sharing information on processing for those interested. The meeting is free and open to anyone interested. For the potluck, attendees are asked to bring a dish to share or drop a couple dollars in the meeting fund bucket. The potluck starts at 6:30 p.m. at Sheridan Park Community Center, 680 Lebo Blvd. in Bremerton.
Our Outdoor Patio is Now Open for Summer! LIVE music Thursdays 8–10 pm and Friday & Saturday 9–11 pm... With a late night entertainment menu. For fabulous food in a relaxed setting and a beautiful view of Sinclair Inlet, Amy’s On The Bay is a great choice… Voted “Best Steak” and “Best Seafood” by the people of SK 5 years in a row!
Amy’s On The Bay Restaurant & Bar 100 Harrison Avenue, Port Orchard 360-876-1445 www.amysonthebay.com
The Kitsap Community and Agricultural Alliance will hold it monthly meeting on July 9, including a community potluck and an educational session on backyard poultry. Special guests for the event will be Jacquelyn Speare and Bernadette Luke from the Manette Edible Garden Tour and Tour de Coop, and Stuart Boyle from the Kitsap Poultry Growers Co-op. Whether you are new to raising chickens
Light-duty jobs keep injured workers and workers’ comp costs healthier The Washington State Department of Labor & Industries (L&I) offers solutions to help injured workers recover while controlling workers’ comp costs for employers: • Create and support light-duty jobs. • Encourage injured workers to file a report of accident online. Both these return-to-work, best-practice strategies help keep an injured employee connected to the workplace as part of the recovery process. These practices not only benefit the worker, but help the business
AWOB meeting will hear ‘What Men Don’t Tell Women About Business’
injured worker misses work, the less he or she will earn over the long-term. Ten years after an injury, workers who missed more than three years of work make only twothirds as much as those who were able to return to work in a few days. Since it began, the Stay at Work program has reimbursed over 1,800 employers for more than $13 million in wages and expenses to support more than 5,800 injured workers in medically approved light-duty jobs. Additionally, L&I’s new online accident
report, called FileFast, is replacing the paper process as the filing method of choice. Filing online at www.FileFast.Lni.wa.gov improves claim receipt by five critical days. Early information leads to better communication and return-to-work options before the worker is eligible for time-loss benefits. For more information on these actionable solutions to workplace safety and controlling workers’ comp costs, go to www.WorkingSolutions.Lni.wa.gov.
Happy Independence Day As we celebrate our nation’s birthday, we wish to thank our armed forces and veterans who have given so much so that we may all live in the “land of the free, and the home of the brave.” 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
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July 2013 Kitsap Peninsula Business Journal • KPBJ.com 7
The July speaker for the Alliance of Women Owned Business (AWOB) meeting will be sure to inform, entertain and even shock the audience with his lively presentation — taking them behind the scenes of what really happens in the office, boardroom and at the water cooler. He focuses on the diverse dynamics of men Christopher Flett and women at work in a presentation titled “What Men Don’t Tell Women About Business.” Christopher Flett will be the featured speaker at the AWOB gathering July 10 at 5 p.m. at The Inn at Gig Harbor. He is recognized internationally as a leader in business motivation and development and turnaround strategies. A resoundingly alpha male, he focuses primarily on working with women in business. For more than a decade, he cut a path through corporate North America as the untraditional business leader. BusinessWeek has referred to him as the “Shock Jock of Business Management” for his blunt and direct approach to business. AWOB was formed three years ago as a way to support women business owners and to empower them to take their businesses to the next level of success. AWOB’s monthly meetings feature a guest speaker or special format event on topics of interest to female entrepreneurs. Monthly events are free to AWOB members and first-time guests, and the fee for all others is $25, payable at the door. AWOB members attend all the events free, and attendees may sign up at the July meeting. Attendees may bring a door prize to get a spotlight moment to promote their business — business cards are drawn for door prizes. AWOB Meet Me After Hours, a no-host dinner opportunity, follows the meeting in the restaurant at the Inn at Gig Harbor, offering time for conversing and networking in a casual one-to-one setting. Find more information online at: www.allianceofwomenownedbusinesses.com or www.facebook.com/allianceofwomenownedbusinesses.
manage workers’ comp costs. Stay at Work reimburses qualified employers for half the injured worker’s base wages when given a light-duty or transitional job during recovery. The program pays up to $10,000 or 66 days of wages per claim. Additionally, employers can get reimbursed up to $2,500 for tools and equipment, $1,000 for training fees and materials, and $400 for clothing per claim if those items are needed to support the worker in a light-duty job. L&I data shows that the longer an
Surgeons confident using robotic procedure Benefits include enhanced vision and dexterity during complex operations, and better patient outcomes
Dr. Cindy Mosbrucker looks into the viewfinder and uses her fingers to remotely manipulate surgical tools during an operation performed with the da Vinci robotic system at St. Anthony Hospital in Gig Harbor.
8 • Kitsap Peninsula Business Journal • KPBJ.com July 2013
Tom Owens photo courtesy Franciscan Health System
By Tim Kelly, Editor When Dr. Cindy Mosbrucker joined the staff of Franciscan Health System in 2008, she was already a highly experienced surgeon, but she soon discovered a new tool that hadn’t been available at the hospitals where she worked previously. That tool is the da Vinci robotic operating system, and Mosbrucker said she realized the advantages it offered — for both patients and surgeons — over laparoscopy, the surgical technique she was skilled in. “St. Joe’s (Franciscan’s St. Joseph Medical Center in Tacoma) at that time had two da Vinci robots, and I got trained on using the system as soon as I got up here,” she said. “Since then I’ve done over 500.” She and a couple other Franciscan surgeons are now doing robotic procedures at St. Anthony Hospital in Gig Harbor, which recently got a da Vinci system. Franciscan also purchased a “robot,” as surgeons refer to them, for St. Francis Hospital in Federal Way last year. Mosbrucker is a urogynocologist and one procedure she specializes in is a complex surgery for difficult cases of endometriosis, a uterine condition that often causes pelvic pain. She became adept at this procedure while working at a hospital in Bend, Ore., with Dr. David Redwine, recognized as one of the top surgeons in the country for such cases.
They performed the operations by laparascopy, a minimally invasive method that — like robotics — inserts a camera and surgical tools through one or more very small incisions on the patient’s abdomen, allowing the surgeon to manipulate the instruments with her hands outside the patient’s body while watching the internal surgery on a monitor. However, what makes the robotic system so much more advanced are features such as a color 3D camera that provides an enhanced view that surgeons see in a highresolution viewfinder, compared with watching what they’re doing on a conventional two-dimensional monitor above the operating table in laparascopy. Dr. Marc Mitchell of The Doctors Clinic, who was recruited to this area to be director of robotic surgery for Harrison Medical Center, said “the visualization we have with robotics” is a major benefit for surgeons working in complex areas of a patient’s anatomy. The robot enables a surgeon not only to see in greater depth and detail, but also to manipulate instruments with more dexterity and precision. Instead of holding the inserted surgical arms and manipulating them while standing over a patient on the operating table, a surgeon using the da Vinci system is seated at an ergonomically designed work station connected by computer to the robot at the patient’s bedside. Looking into the viewfinder positioned with a head cradle, the surgeon holds two grips to make movements that are scaled and translated through the computer, allowing for precise control of three surgical arms inserted into the operating area. Mitchell said it allows him to use more natural hand movements in manipulating the surgical tools. Mosbrucker offered this comparison of shifting from the advanced laparascopic surgeries she did before to surgery performed with the da Vinci robot, which costs about $1.7 million. “It’s like driving an old ’65 Ford pickup truck, with a great big steering wheel and no power steering ... and doing surgery with the robot is like driving a brand new Lexus that parks itself.” Mitchell noted that surgeons using the da Vinci robot still need the same level of skill to perform procedures such as hysterectomies or surgery for prostate, kidney or colo-rectal cancers. “You can’t look at the robot and say it makes doing the surgery any easier,” da Vinci, page 11
Athletes, others get good results from ‘active release’ treatment Bremerton chiropractic clinic specializes in using technique for injury rehab active stretching with myofascial release (massage) to treat muscles and fascial tissue,” Hartford said. The combination of
stretching and moving with the massage helps break the scar tissue adhesions that
Treatment, page 11
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sports physician, opened his practice in Manette 10 years ago, his goal was to bring this style of therapy to Kitsap. The practice grew quickly and five years later, he hired Hartford. In 2010, Smith moved the practice to a building he built on Dawn Road in Bremerton, and now he has a third chiropractor as well as an acupuncturist, a personal trainer and two massage therapists. A physical therapist will be added to the staff in the next few Photo by Rodika Tollefson months. According to Smith, his Forrest Hartford of Smith Chiropractic uses the Active Release is the only practice in Kitsap Technique in working on the foot flexor muscles of Kasy Kiarash, whose chiropractors are a player for the Kitsap Pumas soccer team. certified in active release. In addition to working with By Rodika Tollefson individuals, they work with local sports Like many runners, Ryan Chapman was teams including the Kitsap Pumas and not new to the issue of pains and injuries. Northwest Blaze. The Bremerton athlete and triathlon coach Chapman, too, sends his athletes for a also knew that recovering from those functional movement screening and for injuries often meant down time. One of treatment of injuries, and he does running Chapman’s struggles was pain from ITBS clinics together with Hartford. He was (Iliotibial Band Syndrome), a common especially impressed that he didn’t have to injury among runners caused by an stop training while seeing Hartford for one inflammation or tightness of the IT band. of his injuries, and that during training for “I have a weaker right hip and I was one of his Iron Man competitions he didn’t compensating for it by using other muscles have to stop a single workout because of excessively,” Chapman said. pain or injury — due to incorporating These days, Chapman is ITB pain-free regular visits with Hartford into his training and no longer has that imbalance — thanks regimen for three months. to Forrest Hartford, a certified chiropractic “I’ve sent athletes to him with ITB, sports physician with Smith Chiropractic & plantar fasciitis and other issues and he’s Sports Rehab in Bremerton, one of three always gotten them back on the road, ready chiropractors who use the Active Release to go, in an amazing fashion,” Chapman Technique at the practice. said. “They have the ability to feel every Hartford, who’s worked at Smith muscle and ligament and they can take Chiropractic for five years, has experienced away the symptoms while fixing the pain the benefits of active release firsthand. A you start with,” said Chapman, founder of high school and college athlete who played B.A.S.E. Training. “A lot of chiropractors several sports, he injured his back in his and physical therapists are about taking out senior year of college playing baseball. “I the pain but not fixing the reason for the found a chiropractor who did active release pain.” and I was back in a week,” Hartford said. What makes the experience with Smith An exercise science major with plans for Chiropractic unique is a combination of medical or physical therapy school, Active Release Technique to work out the Hartford decided he had found his niche. pain, and special exercises, designed after a He’s one of a handful of chiropractors in the functional movement screening, to correct state certified by both the American the imbalance causing the pain in the first Chiropractic Board of Sports Physicians place. and the American Chiropractic “Active release is something that can fix Rehabilitation Board. acute pain like a sprained ankle and it can A typical visit includes a functional also fix chronic things, anything related to movement screening that takes the person soft tissue,” said Graeme Smith, owner of through a series of movements to identify Smith Chiropractic & Sports Rehab. “It’s the source of the problem. The course of about restoring things back to where they treatment could then include active release, were.” exercises or the more typical chiropractic The technique was originally geared adjustments. For athletes in specific sports, mostly to athletes (it’s common for NFL the bio-mechanical analysis can also look at teams and others to have an active-release how they move during their typical chiropractor on the field) but they can be activities (runners run on a treadmill, for applied on anyone, from weekend warrior example) and the session can be filmed for athletes and office workers to pregnant further analysis. women. “Active release is a combination of When Smith, a certified chiropractic
Married doctors walk the walk of major weight loss By Rodika Tollefson Like many people who struggle with weight their entire lives, Francis Mercado has tried different things through the years but always gained back the weight he lost. But when he stepped on a scale at a relative’s home in April 2011 and watched the needle inch past 290, he couldn’t believe it. “I thought it was broken,” he said. When he realized it wasn’t, he decided “enough was enough.” Mercado had the perfect partner to help him lose weight — his wife, Margaret, who’s also steadily gained weight, especially after giving birth to their two children. The Gig Harbor couple had an added incentive: Both are physicians with Franciscan Medical Group, Francis in internal medicine in Gig Harbor and Margaret in family practice at the Port Orchard clinic. “We’ve been giving counseling to others and we wanted to be more credible,” Francis said. The couple, who gained a lot of their weight during medical residency in Ohio, decided to use the traditional route of diet and exercise. But instead of following restrictive diets like Atkins or hCG (a
current trend, based on certain hormones), they started counting calories and eliminating major offenders like chips and sweets. To boost things, the couple created a competition with each other. Whoever lost the highest percentage of body weight for the month got a reward. “It got pretty competitive,” he said. “We became fairly strict and obsessive-compulsive about it.” Margaret was in charge of shopping and helped keep her husband in check by not buying baked goods (his weakness). Their diet overhaul included eating more vegetables, both steamed and in salads, and lean, grilled meats. They kept track of calories with a free app called MyFitnessPal. Eventually, they started measuring their carbohydrate intake and limited them as well. Previously leading a sedentary lifestyle, the Mercados eased into exercise, working their way up to at least 30 minutes every day. They swapped dinner dates for exercise dates and added a second television set in the living room so they could follow the P90X program while their two young kids were entertained. Within 18 months of their decision, the
10 • Kitsap Peninsula Business Journal • KPBJ.com July 2013
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pair had lost nearly 200 pounds together. Francis met his goal of 100 pounds, while Margaret, who originally was happy to lose 30, lost about 75. He no longer has to take cholesterol medication (after his LDL went from 190 to 86) and she no longer has back pain when playing with their kids, who are now 2 and 4. And most importantly, both have been an inspiration to their patients. “It is a personal Francis and Margaret Mercado, both doctors with Franciscan testament that it’s doable. Medical Group, are shown in the above photo before they began an You just have to be intensive weight-loss program. The slimmed-down couple is shown motivated,” Margaret in the photo below with their two children. said. Motivation is a big factor in losing weight and the Mercados acknowledge that doing it together made it more effective. Francis recommends having a weight-loss buddy who can help with accountability, and said it’s especially a good idea to recruit the spouse, even if he or she doesn’t need to lose weight. Besides adjusting their taste buds to different healthy weight, the two doctors are still very foods (“I hated salads but I can eat them much keeping each other on track. And every day now,” Francis said), time was the since they know firsthand about the many biggest challenge, especially for busy mom health risks caused by being overweight, Margaret. “I felt guilty at first doing the they’re happy about their new lifestyles — exercise,” she said. “And that’s what most of as well as happy to be role models for my patients say: ‘I don’t have time.’” patients. She has since figured out how to fit it in “I have a patient who got off insulin after as small sessions in between playing and losing weight and another is off diabetes talking with the kids, and she also looks for medication,” Francis said. “It’s rewarding to other ways to exercise, like hiking. have patients thank you for inspiring them.” With their goal now to maintain their
Tips from Drs. Francis and Margaret Mercado on losing weight: • Know everything you eat and keep close track of calories and carbs; use free online or smartphone apps. • Set realistic goals and start small. • Figure out your calorie intake and decrease it by 10 percent; if you don’t lose weight, cut another 10 percent. Keep adjusting until you start losing 1-2 pounds a week. • Be accountable to a weight-loss buddy. • Avoid your nemesis foods when you shop for groceries. Pack up on vegetables and lean meats. • Avoid liquid calories — a Frappuccino can have as many as 600 calories, or the equivalent of an entire lunch. Eat something that’s filling instead. • See your physician before starting a regimen, especially if you have heart disease, diabetes or hypertension. • Talk to your physician before taking any weight-loss supplements.
DA VINCI
from page 8
Mitchell said. “It makes it definitely safer and more ergonomic. It allows you to do complex procedures that would be extremely dangerous done laparascopically.” Dr. Cindy Mosbrucker, who Mosbrucker learned laparascopy while doing a residency in the early ’90s at Bethesda Naval Hospital in Maryland, said she initially thought of using Franciscan’s robotic option primarily for the more difficult hysterectomies she performs, but she realized robotics provided better outcomes with fewer complications in more routine operations as well. “I decided if I was going to have a hysterectomy, I would want it done with the robot,” she said. “I started doing the vast majority of my cases that way.” Mitchell, 37, didn’t adapt to robotics as a convert from laparascopy. He trained in adult and pediatric robotic surgery during his residency at Michigan State University Medical Center, and he did a rotation at City of Hope, a Los Angeles-area hospital and cancer treatment center, when that facility was implementing robotics. Both surgeons said benefits for patients include a lower risk of infections and other complications that require post-surgical treatment; less loss of blood through an incision 5 millimeters or less in diameter, as compared with “long, muscle-cutting incisions” that Mitchell noted are required for conventional open surgery; the cosmetic appeal of having only a small scar
TREATMENT
but had never heard about ART until he met Smith and tried it. “The results were tremendous so I quickly referred my wife to Graeme,” he said. “It was beneficial during a couple of her pregnancies. I have become a huge fan since that first day.” He has since changed how he approaches strength training. “Because of what I learned from Forrest, I can quickly identify some weaknesses and difficulties and tailor a workout,” he said. “It’s probably made me a better coach.” But it’s not just about his athletes, Beaver said. He said all those aches and pains that people think are from getting older can be treated with active release. “If you’re not getting treated with Active Release Technique, you’re missing out on a new life,” he said. Hartford said in many cases, active release can be used for conditions that result from cumulative traumas (such as carpal tunnel syndrome), if caught early and there’s no neural damage. He added that the sports chiropractic model can be applied to anybody as well — identifying the problem, fixing the tissue then giving people the tools to remain injury-free. “If you can get somebody back to work, it’s as rewarding as getting an athlete back to the field,” he said.
rod-like surgical tools that are inserted — “like cutting your hair in a mirror,” Mosbrucker said. That issue is eliminated in robotic surgery, and “that allows us to do single-site (one incision) surgery much more intuitively without having to think about crossing your hands,” she said. The company that makes the daVinci robot is called Intuitive Surgical, and though its robotic system is widely used, there has been some controversy regarding whether training provided for surgeons is always adequate. A lawsuit was filed in Kitsap County by the family of Fred Taylor, who underwent surgery in 2008 at Harrison that started using the robotic procedure, but was converted to open surgery when problems arose. Taylor died in 2012. The lawsuit that was filed after the botched surgery named the surgeon, Dr. Scott Bildsten, and Harrison as defendants, and Intuitive Surgical was added later. The hospital and Bildsten reached settlements of undisclosed amounts in the lawsuit, but Intuitive opted for a trial. A central issue in the trial held earlier this year was whether the company provided sufficient training for Bildsten before his first unassisted use of the da Vinci robotic system in operating on Taylor. The jury in the widely covered case ruled that Intuitive Surgical was not responsible for the patient’s death. Mitchell and Mosbrucker said the lawsuit hasn’t altered their view of the
Photo by Tim Kelly
Dr. Marc Mitchell of The Doctors Clinic, who is head of Harrison Medical Center’s robotic surgery program, holds one of the surgical tools used in the operations. benefits of robotic surgery. “It does not give me, personally, any pause,” Mitchell said. “The robotic system used in operations now is simply a tool we use,” and one that has yielded better outcomes for hundreds of patients. “It makes my life easier,” Mosbrucker said, “and I have absolute confidence that in my hands, it is the best way to operate.”
July 2013 Kitsap Peninsula Business Journal • KPBJ.com 11
from page 11 limit strengths and flexibility and can cause pain. “We expect to see significant results in three to four weeks,” Hartford said. “The idea is to treat and give them tools so they don’t have to come back.” The tools include things like exercises, gait training and stretching. Smith Chiropractic has a full rehab gym on site and exercises are customized so people can do them at home without “fancy equipment.” The Active Release Technique, or ART, method was developed and patented by chiropractor P. Michael Leahy after he observed how different parts of the body — muscles, nerves, fascia, ligaments and tendons — responded to different work by hand on soft tissue. ART has more than 500 treatment moves, called protocols, that can help correct specific issues. “There are protocols for every muscle and tissue,” Hartford said. “It speeds up recovery for specific conditions that don’t respond to anything other than manual therapy, and it can be used for just about anything.” Jeff Beaver, a high school coach from Bremerton, grew up with chiropractic care
that may be barely visible for incisions made through the navel; and faster healing time, which means a shorter post-surgery stay in the hospital and a quicker return to normal activities for the patient. Mosbrucker explained that a lower rate of complications saves a hospital money, since hospitals receive a set payment for a surgical procedure from insurance companies or other coverage such as Medicare, regardless of any post-operative procedures required to deal with complications. “In the (financial) era we’re in right now, the most important thing in lowering costs is to lower your number of complications,” she said. Harrison, which has about a dozen robotic-qualified surgeons, currently uses robotics for urology, gynecology and general surgery. But Mitchell said the technique can be used in other specialties, even for single-bypass heart surgery. “Basically anything that can be done by laparascopy that involves complex anatomy can be pretty well suited for robotic surgery,” he said. One aspect surgeons especially appreciate is the ergonomic benefit. Mosbrucker said laparascopy requires standing with her weight on one leg while manipulating a pedal with the opposite foot, and leaning over the operating table and maneuvering the surgical arms while watching the monitor. “I used to get numbness in my thumbs from holding the instruments,” during operations that can last hours, she said. Sometimes her back would start hurting as well, which isn’t helpful while trying to concentrate on delicate surgery. Another difference is that laprascopy requires opposite hand control moving the
Kitsap Foot and Ankle Clinic expands to Port Orchard
12 • Kitsap Peninsula Business Journal • KPBJ.com July 2013
By Rodika Tollefson Bremerton-based Kitsap Foot and Ankle Clinic has been adding new services and physicians for the past year. And now, the practice is expanding again, getting ready to open a location in Port Orchard in August. Dr. David Gent, who has owned the business since 2002, said he’s been contemplating the expansion to South Kitsap for some time. The addition of Dr. Andrew Hune and Dr. Kirsten Grau to the medical staff last year made that expansion possible. The Port Orchard clinic, located on Pottery Avenue in the Cedar Heights Professional Center, will initially be open a couple of days a week. The 1,500-squarefoot facility essentially doubles the practice’s space. Both Hume, who is from Toronto, and Grau, from Chicago, have specialized training that has allowed Kitsap Foot and Ankle to offer additional procedures. Gent, a third-generation Bremertonian who graduated from Bremerton High School, returned to his hometown in 2002 after his medical residency in New York. He and his wife had planned to live in Miami —
Dr. David Gent has owned Kitsap Foot and Ankle Clinic in Bremerton since 2002. Photo by Rodika Tollefson
shoe program is offered for diabetes patients to help them with proper footwear such as custom-fitted orthotics. “The caring aspect in my office staff is very important,” Gent said. “It makes it less stressful on the patient.” Although the trend lately has been for solo practitioners to join larger, multispecialty organizations, Gent likes bucking the trend. “There’s an advantage to being your own boss
and dictating your schedule for family and community time,” he said. Gent sees his practice continuing to grow. He hopes to eventually open a location in Poulsbo, as well as collaborate with Harrison Medical Center to implement a residency program. “I have a vested interest in the community,” he said. “I want to see it grow and progress.”
Small business plans not available in state’s health exchange in 2014 in most counties to travel easier to her native Brazil. But when he learned that Dr. Michael Worpell was selling his practice, Gent saw an opportunity. “When this opened up, everything fell into place and I came back,” he said. As a podiatrist, he treats conditions as simple as painful calluses to complex ones such as skin cancer. Minor surgeries are done in the office while major ones are scheduled at Harrison Medical Center or Poulsbo Surgical Center. New technology is continuously being added for various procedures such as joint replacements, implants for flat-feet correction, and physician-guided neuropathy. A special
By Rodika Tollefson The Patient Protection and Affordable Care Act, which becomes fully effective in 2014, requires the states to operate a Small Business Health Options Program, or SHOP, as part of the health exchanges set up to provide individual and small-business plans. The SHOP is for employers with 100 or fewer employees. When Washington state’s exchange, called Washington Healthplanfinder, opens for enrollment later this year, however, most employers will not have access to SHOP. Although seven carriers filed letters of intent to
participate in SHOP earlier this year, only one of them, Kaiser Foundation Healthplan of the Northwest, has a plan for approval. By contrast, 57 health insurers submitted for approval a total of 229 plan options for individuals and families. According to the state Office of the Insurance Commissioner, Kaiser chose to participate in SHOP only in two counties, Cowlitz and Clark. Although the deadline to file the rates and products is not until July 31, none of the others intend to sell small business plans inside the exchange Plans, page 13
PSA screening controversy, a year later disease). The recommendation, issued in May 2012 by the U.S. Preventive Services Task Force, was for the PSA test to no longer be used at any age. The recommendations of the panel are geared to primary-care physicians and are advisory in nature, but frequently influence the decisions of insurance carriers about whether to pay for the tests. Of all cancers in men, prostate is the second-most common, after skin cancer. It is also the second-leading cause of cancer deaths in men, after lung cancer. Every year, an estimated 240,000 men in the United States are diagnosed with the disease, and nearly 30,000 die from it. The challenge with the diagnois is that not all prostate cancer is created equal. Lowgrade prostate cancer in older men may not need treatment, for example. “The low-risk prostate cancer can take 10-15 years to develop. An older individual doesn’t need treatment if he doesn’t have 10 to 15 years of life left. In the past, we overtreated those patients and now we recognize that problem and we put them on active surveillance instead,” Hsi said. “But intermediate and high-risk cancer can ride its course in five years and if you don’t treat the younger people, they may die. By not screening anybody, you deny the younger patients the possibility of being screened
PLANS
Credit. The credit is offered for 2010-13 for employers up to 25 FTE employees whose wages are less than an average of $50,000. In 2014, the credit is set to go up to as much as 50 percent from a maximum 35 percent previously (the employer must pay for at least half of the employees’ health care premiums, but not for dependents). Michael Marchand, communications director for Washington Healthplanfinder, said it was unclear at this point what will happen in the other counties with regards to the tax credit because that was a federal government decision. However, he said some carriers are hoping to offer small business plans through the exchange in another year. “They’re very interested in participating but need more time to get resources ready,” he said. “We see the silver lining in the extra time — maybe carriers can augment the options available because of the extra time.” For more information about Washington Healthplanfinder, go to www.wahbexchange.org.
from page 12 market, said Stephanie Marquis with OIC’s Public Affairs. “It’s been a huge undertaking for them. All the plans had to come up with new products and meet new requirements,” she said. Small businesses will still be able to buy on the regular small business market and those with 50 (full-time equivalent) employees or fewer are not required to provide insurance under the Affordable Care Act. Marquis also noted that one lessknown option sole proprietors are aware of is buying through the small business market, even if they don’t have any employees. Often, self-employed individuals can get much better rates by enrolling through the small employer market instead of individual plans, and they can cover their entire family. Employers must purchase employee insurance through the SHOP in order to claim the Small Business Health Care Tax
and treated because the recommendation was a blanket statement.” Dr. Randall Moeller, a urologist with The Doctors Clinic (www.thedoctorsclinic.com), said the problem is not with the PSA testing or using the test for diagnosis. “The problem is overtreatment of slow-growing, nonaggressive cancer,” he said. He noted that in Kitsap County, urologists and oncologists have been collaborating on how to approach the screening differently and eliminate that fear of overtreating. As a result, they have increased the cases of surveillance vs. treatment. “Nationwide, only 5 to 10 percent of prostate cancer patients are on active surveillance, but in Kitsap, that’s about 40 percent,” he said. “People used to become paralyzed from the waist down or with kidney failure. When PSA testing came in, it all went away,” Moeller added. “Now we could be going back to that because of these recommendations.” While physicians are still trying to figure out the best way to use the PSA screening, one school of thought is to have the first test at 40, not 50. “At 40, you don’t have an enlarged prostate and if the PSA is 1 or less, your lifelong significant risk of developing prostate cancer is very low,” Moeller said. A low baseline would then eliminate the need for annual screenings. The Preventive Services Task Force recommendations were based on European and U.S. trials of prostate cancer patients. Hsi said the European trial showed a survival benefit while the U.S. one did not, but said many physicians like him feel the American study was flawed. “The good thing is, the government (through Medicare) hasn’t decided to not pay for (the screening),” he said. “My advice is, prostate cancer screening
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is still an important part of a man’s healthcare and they should still bring it up to their primary-care physician and discuss whether it’s appropriate for them,” he said. Similarities with mammogram controversy This is not the first time the task force has raised eyebrows among doctors. A similar controversy was caused in 2009, when the panel recommended that mammograms be used for women over 50 every two years — where previously mammograms had been routine for women starting at 40 on an annual basis. Some of the controversy stemmed from the composition of the panel, which had primary-care physicians and specialists like epidemiologists but fewer cancer experts. “It turns out people aren’t following the (new) recommendations. Women are continuing the screening,” said Dr. Berit Madsen, co-founder of Peninsula Cancer Center in Poulsbo. A Mayo Clinic study released in July 2012 showed a 6 percent decrease in the number of women in their 40s who got the breast cancer screening in the first year after the task force guidelines came out. Madsen said a slight decrease in the past couple years could be due to the economy since many people lost their jobs and health insurance. But she notes that the screening is included in the Affordable Care Act, which also made it easier to get mammograms. Just like PSAs, mammograms have made a big impact on early detection and treatment of breast cancer, Madsen said. “I’m a huge believer in early cancer screening because I remember the day when we didn’t have it,” she said. “We used to see much more advanced cases. Nowadays they’re much smaller and the treatments work much better. …The recommendations don’t mesh with our experiences and patients are still wanting to be screened.”
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July 2013 Kitsap Peninsula Business Journal • KPBJ.com 13
By Rodika Tollefson More than a year after the controversial recommendations of a U.S. expert panel to discontinue PSA screening for prostate cancer, the impact on patients is still unclear. But local cancer experts, along with many others nationwide, continue to advocate for the test. “PSA screening, when done intelligently, still saves lives. Medicare data shows that since we started PSA screening, the number of men who come in with metastatic prostate cancer (too late to cure) has been reduced by about 75 percent,” said Dr. R. Alex Hsi, co-founder of Peninsula Cancer Center (peninsulacancercenter.com) and Peninsula Prostate Institute. “If you stop screening, what do you think will happen to that data?” PSA (prostate-specific antigen) screening is a blood test that became routine in the early 1990s. An elevated PSA can be a sign of prostate cancer but it can also be caused by other things, such as an enlarged prostate. The closer the patient is to his 40s and 50s when his baseline PSA is measured, the more effective the test is in pinpointing possible cancer and not other causes of elevated levels. In the past, PSA screening was recommended at age 50, or earlier for highrisk individuals (such as African Americans and those with family history of the
14 • Kitsap Peninsula Business Journal • KPBJ.com July 2013
New law restricts employers’ requests for social media info By Julie Tappero In May, Washington became the fifth state in the country to enact legislation restricting employers’ ability to ask employees or job seekers for their social media passwords. While you might think this is a non-issue for you and your business, this law is worth taking the time to understand. The day may well come that you, or someone else in your company, crosses this line. Here are some examples of instances when an employer might have the desire or interest in an employee’s or applicant’s social media activities: • Your business is a fitness gym, and you are hiring for the front desk. It’s important to you that the person hired lives a healthy lifestyle, so you’d like to review their presence on social media to ensure that their evening and weekend activities are not filled with drinking, smoking and drugs, which would reflect poorly on your business. • Before hiring someone, you’d like to see what comments they’ve made about their previous employers and bosses to determine if they’d fit well in your business. You might like to know if they are respectful, and if they treated their employers’ information with appropriate confidence. • An employee comes to you with a complaint against a co-worker. They claim that the employee is making racially motivated comments about them on their Facebook page. You need to conduct a harassment investigation, and as part of it, you must view the employee’s social media sites. The new law in Washington goes into effect on July 28. Under the new law, how might you handle these types of situations? The issue, of course, has to do with protecting rights to privacy. The new law attempts to protect individual privacy, while continuing to support an
employer’s need to conduct investigations into illegal or inappropriate activities. Under the law, you cannot request, require or coerce an employee or applicant to provide you with their social media passwords, or to access their accounts in your presence in order to see the contents, or to alter their settings to allow you access. So, for example, in many of our small friendly workplaces, it’s not uncommon for us to be online friends with our co-workers and subordinates. Under this new law, it is illegal for you to send a friend request to a subordinate. Our Legislature did, however, recognize that there are times that an employer, during a legitimate investigation, would need to access an employee’s social media account. They’ve narrowly and specifically defined when and how that may happen. The following conditions must be met during the course of an investigation wherein an employer is determining facts. The investigation must be in response to specific information, or a tip about activity on the employee’s social networking account. It can’t be based on a hunch or suspicion, and it can’t be based on a desire to exonerate someone. The purpose of the investigation has to be to ensure compliance with laws and regulations, or be related to work-related misconduct, or intended to investigate an allegation that the employee has disclosed the business’s proprietary, confidential or financial data. Lastly, the employer cannot request or require the employee to provide the login information. They simply have the right to view the information. These conditions apply only to an employee’s personal social media accounts. They do not apply to accounts established by the employer. It also doesn’t apply to intranets, or other information exchanges that are meant for employees to share information amongst themselves. Lastly, it doesn’t apply to passwords for any electronic device or online account which the employer provides or pays for. What if you accidently get an employee’s password, or you make a guess
and figure it out? Could you peek at their account? Nope. The legislation specifically forbids an employer from utilizing that information. This is a good time to review your personnel policies. Be clear about the appropriate uses of company-provided technology, and when employees may have an expectation of privacy. Require log-in passwords for all business-related accounts, and be clear about which accounts belong to the company. Train your supervisors on this new law and its impacts in the workplace. Tell them they cannot friend their subordinates or request access to social media accounts from employees or job applicants. Review your processes for workplace investigations and incorporate the law’s requirements. One last thought for you to contemplate: If it’s important for your business to consider a job candidate’s social media presence prior to hiring them, there are services that perform social media background checks. They require the candidate’s permission, but do not require them to provide their passwords, and they only view publicly available content. They filter out any content that involves a protected class from the report provided to your
company. And they are in compliance with all requirements of the Fair Credit Reporting Act and other federal and state laws. Utilizing a professional service should keep you on the right side of the law. With people pinning, tweeting, texting, chatting, checking in, friending, liking, instagramming and all of the other publicly social techy stuff we all do, the line between public and private activities is very blurry. Technology is supposed to make our lives easier, but in the workplace one thing is for sure: It makes our lives as employers more complex and confusing. Oftentimes, it’s court cases that bring clarity in employment situations such as this. We just don’t want those court cases to involve our businesses! • 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.
The Doctors Clinic physicians recognized at Excellence Awards Five physician partners with The Doctors Clinic received 2013 Provider Service Excellence Awards at a June 4 ceremony at Kitsap Conference Center. The recipients were John Banzer, Mark Hainer, Robin Houck, Randy Moeller and Preston Rice. The awards, presented by Harrison Medical Center, are given to health care providers based on findings from Press Ganey, a national company that measures health care performance. Selection criteria was pulled from patient evaluations concerning performance in the areas of amount of time spent with the patient, communication and interaction, friendliness and courtesy, and skill and accuracy. Moeller, a urologist, has received the award four years in a row. Cardiologists Banzer, Houck and Hainer each earned honors in more than one category, and all three were recipients last year. “We are proud to work with a team of highly regarded, quality, service-oriented physicians. We believe that patients deserve only the best,” said Linda Brown, executive director of The Doctors Clinic, an independent, physician-owned, multi-specialty medical group with 10 locations throughout Kitsap County.
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Igniting your flame Culture Choose to be collaborative. Ditch the command and control style. It doesn’t work anymore except for a professional football team, and even there it may be dying. By showing concern, vulnerability and interest in what your team thinks, you may just find the answer is always in the room. Start group activities aimed at promoting team building. One of my clients started a book club with astounding success. Utilize exercises and case studies in meetings, rather than telling everyone how it should be done.
Make time for play. Encourage life balance and offer opportunities both inside and outside of work to play and relax. Amazing what a cleared head can do for your business! Inspiration Become an exceptional communicator. If this challenges you, join Toastmasters or some other organization that helps you with communication skills. This is the best investment you can make for yourself and your business. Get a coach. The best athletes, entertainers and business executives in the world all use coaches. Why aren’t you?
Coaches will help you focus, be held accountable, and reach objectives more quickly. Okay, maybe this is the best investment you can make in yourself! Be human. It’s okay to show vulnerability to your team. It’s acceptable to not always possess the answer. It’s perfectly fine to ask for help. In fact, you will be more admired for it and be someone that people want to follow. Knowledge Make sure you stay leading-edge with your products and services. Had Steve Weedin, page 17
July 2013 Kitsap Peninsula Business Journal • KPBJ.com 15
By Dan Weedin I was recently on a trip back in Rhode Island to spend a day with my professional mentor and my business mastermind group. As our day came to a close, we found ourselves out by his swimming pool, overlooking his beautiful lake filled with turtles, fish and birds, and smoking a nice, fat cigar. Peaceful. As I enjoyed sitting in this spectacular setting, I found myself watching the burning end of the cigar. In order to light it, I needed three things — fuel, heat and oxygen. Without one of any of these, the cigar doesn’t light. In your business, you also need fuel, heat and oxygen. Without any of these three, your business won’t work effectively and will cause you much anxiety, loss of time, and loss of money. But since we’re not talking about cigars here, allow me to explain. Your fuel is your culture. Peter Drucker said “culture eats strategy for breakfast.” Are your revenues and reputation being swallowed up due to a lousy culture? Your heat is inspiration. Inspiration in any organization comes from leadership. If you’re the leader, what are you “inspiring?” Are you an old-school command and control leader, or are you collaborative and motivating? Your oxygen is your knowledge. What I mean is how well does your team know its “stuff?” Are they competent? Do your products work? Are you providing value? For a fire, the law of physics dictates that the flame fizzles without one of the three catalysts. In business, you can actually operate, but without culture, inspiration and knowledge, you’re business may be up in smoke! Two out of three ain’t bad… it’s deadly. Here’s what happens when you are lacking one… Culture plus Inspiration without Knowledge equals a Bad Check. Your team may be sound and your ability to lead unrivaled, but without competence or value, you will soon find yourself overdrawn, as your customers aren’t satisfied. Culture plus Knowledge without Inspiration equals a Rudderless Ship. You have terrific products and service and a strong team, yet the leader is MIA. The powerful team will soon erode as they seek out strong leadership, thus moving from one bad thing to at least two. Inspiration plus Knowledge without Culture equals a Dysfunctional Family. You have innovative products and services and are a good leader, but you’ve hired poorly, or are being sabotaged from within. Pretty soon, the poor culture will implode and the good employees will hightail it out of your business like rats off a sinking ship. The hardest part of owning or managing a business is making sure that you are strong in all three areas. Here are a few of my best practices for each:
Introducing the Kitsap business accelerator
16 • Kitsap Peninsula Business Journal • KPBJ.com July 2013
By Ken Sethney, Accelerate Kitsap board president and volunteer mentor You are a very busy person. But let’s say you have enough time to mentor one struggling entrepreneur. Which one would you choose to help? Start-up venture, partners fresh out of college, they have a big idea but no funding, no customers, no business plan, and no experience running a business; Existing company, five years in business, 10 employees, steady revenue, good product mix, repeat customers, and a vision for taking company to the next level. I've been working with a group of experienced business and professional people to help Kitsap business owners take their companies to the next level, whatever that looks like to them. It's a combination of two successful models I've been involved with in the past, tailored to the needs of existing small to midsize companies. The VenturePoint small business development center served 500 start-up companies in Orange County, Calif. In three years, we turned $2.5 million in SBA funding into more than $167 million in economic impact. As a member of the coaching team, I learned the power of mentoring as a way to help business leaders.
Vistage International has been helping the owners, presidents and CEOs of midsize companies since 1957. Today, it has about 17,000 members who run companies with an average of $25 million in sales. They invest time and money every month to become better leaders, make better decisions and get better results. On average, their companies grow 2.7 times faster than their competition. Our vision is a hybrid of the two. Accelerate Kitsap is a group of experienced business and professional people working to help entrepreneurs take their companies to the next level, whatever stage their company is in, from start-up to exit strategy. There is a CPA and an attorney, an international banker and a marketing coach. One specializes in HR, while others help with strategic planning, team building, messaging, social media, web design and operations management. All are volunteers, and the list is growing. Accelerate Kitsap is a nonprofit with a lofty goal — growing our local economy by helping one business at a time. The only requirement for participating in our program is that the owner has a vision for taking the company to the “next level” and is willing to accept a bit of help to get there.
Thus far, 15 business owners have come forward to ask for help. Their products and services range from filmmaking to pain therapy, from IT services to sustainable furniture. One is working to patent an invention that will help kids as they learn, play and grow. Another examines commercial buildings with the latest infrared technology to pinpoint the source of water leaks and minimize the cost of repairs. Accelerate Kitsap is a nonprofit organization that is focused on helping
entrepreneurs throughout Kitsap County generate significant, measurable results. We would appreciate having an opportunity to share our ideas with you, to answer any questions and ask your advice. Perhaps you would consider volunteering to be a mentor, or joining the program as a client. To learn more, visit AccelerateKitsap.org. If you are ready to take your company to the next level, join us!
Essential questions to consider in deciding whether and how to grow your business By Kelly Deis, for Accelerate Kitsap Should you grow your business? It is a simple question with an assumed answer. The answer, of course, is that you should want (some will say need) to grow. I am not sure the answer is quite so simple. Growth takes time, energy and money. And, there are inherent risks — if you are not successful, some costs may not be retrieved. And, if the plan is not well executed, it can take focus away from your existing business. If your business is well-established, has a loyal customer base, is reasonably protected from the competition, profitable and affords you the lifestyle you have sought (both in terms of discretionary income and time) then think hard before you take on an expansion strategy. Make sure you understand what you want to achieve by growing. There are good reasons to grow a business. You might need the additional revenue to offset established (fixed) costs required to run the existing business, such as IT, accounting, rent and the like. If the incremental sales don’t come with additional costs, then most of the revenue will fall to the bottom line. An example of this would be increasing retail sales without adding staff or store hours. You might believe that you need to establish critical mass in your particular marketplace to defend against potential competition or to entrench yourself in the market. If you have significant market presence and are perceived to deliver high value, customers will start to find you. There is a lot of value to being ubiquitous! You might have investors or a board that demand ever-increasing top-line and bottom-line growth. Or, perhaps you want to sell the business in the future. Investors and potential buyers place a lot of value on growth (or the potential for growth). Lastly, it is simple human nature to want to be bigger and better. We all take pride in what we do — and for some that means employing a certain number of people, making a certain amount of money or having an undeniable market presence. So, take a step back and decide if growth is something you even want to consider. And if it is, know your motivations — strategically, financially and emotionally — before embarking on an expansion plan. It is always best to plan with the end in sight.
Identify the opportunity The first step in growing your business is to identify where your most likely opportunity for additional revenue might be. There are several possibilities you can consider, all with varying levels of risks, effort, cost and potential rewards. Starting with the strategies with the least amount of risk (and growth potential), they are: • Sell more to your current customers The strategy with the least risk, cost and level of effort is simply to sell more of the current product to existing customers. If you own a café, it might mean selling a muffin to the customer that generally only purchases a latte. Or, perhaps you can identify new ways for your customers to use your product — like turning baking soda into a deodorizer for their refrigerator. • Expand your market The next strategy is to sell more of your current product in an adjacent market — such as another city or state. If you are a retailer, that might mean opening sister store(s) in nearby towns or malls. This strategy is a bit riskier than the first in that there are additional costs to enter the market and increased management required to oversee the new territories. • Offer new products or services This strategy entails offering new products to new and existing customers. For instance, if you are a manufacturer of wood doors, perhaps you can extend your manufacturing capability to include garage doors. It is far less risky to sell new products to existing customers rather than developing new products and selling to a new market. • Develop additional sales channels This strategy involves accessing customers in new ways. For example, if you manufacture consumer products, you might expand your market through the internet or access additional distributors. This strategy is risky in that it requires accessing new channels or markets that you may not have any prior knowledge. • Make and execute a plan Each of the growth strategies described above requires some amount of risk, uncertainty, cost and effort. It is best to start with the least risky strategy and expand into other strategies from there. If possible, test the market first before fully committing. Grow, page 17
Five strategies for increasing sales productivity By Ken Sethney, for Accelerate Kitsap Let me begin by saying that I have tremendous respect for sales people. They have an extremely difficult and vitally important job. When they are successful, everyone wins — customers, owners, managers, widget makers, support staff, and consultants. Therefore, it is in everyone’s interest that sales people are given the support, encouragement and tools they need to succeed. To that end, I offer the following strategies for increasing sales productivity. When they are successfully implemented, your customers and everyone in your organization will benefit. 1) Integrate Sales & Marketing Sales people are different from marketers. Outgoing, gregarious and aggressive vs. quiet, analytical and introspective. It is important for management to understand these differences and provide leadership to get marketers and sales people working toward a single goal. Productivity is increased when marketers generate high-quality leads and sales people are better equipped to close them.
GROW
Rackham gets huge fees from multinational corporations to teach them what he knows. You can buy his three New York Times best-sellers for less than $50. 5) Reward productivity Making a sale isn’t good enough; the sale must be profitable. Use CRM systems that track productivity for each sales rep, each customer, each sale. Make sure that sales people know how decisions they make in the field will effect your bottom line and their commission checks. Teach them to
focus on value before price. Base incentives on profitability, not just sales. It’s your bottom line. • Ken Sethney is the board president and a volunteer mentor for Accelerate Kitsap, a nonprofit business mentoring organization that helps local business owners grow their companies. Accelerate Kitsap mentors are experienced business and professional people who volunteer their time to help entrepreneurs solve problems and find ways to take advantage of new opportunities. You can learn more at AccelerateKitsap.org.
WEEDIN
need a strong dose of fuel, heat, and oxygen… and you need to keep all three burning white hot all the time. This is what highly successful businesses do. If you neglect this principle and allow your business to have one fall short, then your business will eventually flame out. However, if you commit to culture, inspiration and knowledge every day and continue to grow and create, then your business will thrive in any economy. • Dan Weedin is a Poulsbo-based strategist, speaker and mentor. He coaches business leaders and executives to become stronger leaders, grow their businesses, and enrich their lives. 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 web site at www.DanWeedin.com.
from page 15 Jobs settled with creating computers, we might still be buying music CDs rather than downloading it digitally. Constantly look for new offerings. Technology advances daily. You can’t keep doing the same thing over and over because someone will find a better way. Make sure that somebody is you. Always look for value to the customer. How are you improving their lives or business? Are you creating products and services that delight and surprise them? Are you creating a buzz? Bottom line — you can operate a business by being good in two areas, but you will never reach the pinnacle of your success. In order to ignite your flame, you
July 2013 Kitsap Peninsula Business Journal • KPBJ.com 17
from page 16 Consider your expansion strategy as if you were starting a new business and apply the same rigor. It will require, after all, a certain amount of investment and ongoing cost and management. Hopefully, in return it will produce enough revenue to give you an adequate return on investment. Choosing to grow your business is not only a strategic and financial decision, it is also a personal one. Sometimes the decision to grow is not an option — current revenues just simply don’t support the cost structure. Or, it is a defensive play — if you don’t expand to fill a vacuum, then a competitor will, thus jeopardizing your current position. Or, it is part of a larger strategy — maximizing value of the entity so you can sell the company and enjoy a comfortable retirement. Or, perhaps you decide to grow just because you see the opportunity. Or perhaps you decide not to grow — the business is prospering, has a loyal customer base and you are content with your lifestyle. In any case, be thoughtful. If you decide to grow, determine the best strategy for you and your business. Then, make and execute your plan. • Kelly Deis owns Turning Point Financial, a management consulting firm offering strategy, finance and operations consulting services to local businesses. She is also a volunteer mentor for Accelerate Kitsap, a nonprofit business mentoring organization that helps local business owners grow their companies. Accelerate Kitsap mentors are experienced business and professional people who volunteer their time to help entrepreneurs solve problems and find ways to take advantage of new opportunities. You can learn more at AccelerateKitsap.org.
2) Generate high-quality leads Redefine the role of marketing in your organization. Use marketers to identify, qualify and track leads throughout the selling process. Ask sales people to evaluate leads and work with marketers to continually improve the process. Set a goal of reducing unproductive sales calls and eliminate “prospecting” from your sales team’s vocabulary. Productivity will increase as sales people gain more time for productive selling. 3) Identify sales opportunities Research has shown that 95 percent of all sales leads generated by websites, print advertising and trade show attendance are ignored by sales people. Why? They are unqualified leads, ones that did not necessarily represent sales opportunities. Finding warm bodies isn’t enough. Sales calls are too expensive to waste on unproductive efforts. Refine marketing techniques to identify genuine opportunities before the first sales call. 4) Develop sales professionalism It takes more than a nice suit, stylish shoes and a winning smile to be successful. It’s time to get beyond the old-fashioned “motivational“ seminars and focus on developing new skills. Encourage every member of your sales team to read Neil Rackham’s excellent books, starting with “SPIN Selling.” Develop a training program based on Rackham’s methods and follow it rigorously throughout the year. SPIN methods are based on careful analysis of 35,000 sales calls.
Former Legacy Group lenders change course after merger Several loan officers and support staff from the Legacy Group’s Silverdale office left the company to pursue other affiliations following the recent merger of Legacy with J.W. Bradley. Among them are Tim Samuels, Shaun Guererro, Shane McGraw, Walt Hannawacker, Randy Tutterow, Tim Stockton and Ashley Irvine. Hannawacker, who managed the Silverdale Legacy branch, opened an office
of Cobalt Mortgage and recruited Samuels, Tutterow, Stockton and Irvine along with seven Legacy support staff. “It was a better fit for the needs of my clients. They have access to products that give me more flexibility,” said Samuels, who worked at Legacy for more than five years. The Cobalt branch, located on Ridgemont in Silverdale, will eventually have 10 loan officers and 12 staff.
Hannawacker said he loved working at Legacy but after the merger he didn’t feel the new company had the best products he wanted to offer. So he contacted Cobalt, which is based in Kirkland. “I felt Cobalt Mortgage was a better fit for our market,” he said. “I’m really impressed with the owners of the company. Cobalt is not only a direct lender to Fannie Mae and Freddie Mac but they also service all their loans.”
Analysis shows more consumer options after state insurance exchanges set up
18 • Kitsap Peninsula Business Journal • KPBJ.com July 2013
The number of insurers offering nongroup plans to consumers this fall in state-run health insurance exchanges will be much greater than the current number, according to an analysis from the Robert Wood Johnson Foundation (RWJF). The foundation’s State Health Reform Assistance Network compared insurers offering plans prior to national health reform with insurers applying to operate in state exchanges. The analysis uses data from all 10 states, including Washington, that have released information on carriers that will operate in their insurance marketplaces. Across the 10 states, the number of carriers offering individual insurance coverage will increase substantially, from 52 to 70 plans — an increase of 35 percent — according to the report. Six of the 10 states will see more insurers operating on the nongroup exchange compared with the
number of significant competitors prereform. Four states expect no change. In Washington, the analysis shows an increase from six to nine insurers. “More carriers competing in a state means more choice for consumers. That increases pressure on insurers to reduce price and improve service,” said Andy Hyman, who leads health coverage programs at the Robert Wood Johnson Foundation. “This level of competition signals that the state exchanges will be vibrant marketplaces.” Researchers focused on the nongroup market because it currently offers limited options and little information to guide consumer choice, and will therefore be substantially altered by the Affordable Care Act, the RWJF report said. Because tax credits for individual coverage premiums require obtaining insurance through an exchange, most insurance companies
committed to the nongroup market will choose to participate. “How competition will develop in the states is still evolving, but early evidence is showing an increase in competition in most state-based exchanges,” said Heather Howard, director of RWJF’s State Health Reform Assistance Network and a lecturer in public affairs at Princeton University. “The robust competition we’ll see in these states is good news for consumers, because companies have an incentive to provide high-quality, affordable plans through the state-based exchanges, and carriers are clearly interested in these new markets.” The other nine states analyzed for the report are California, Colorado, Connecticut, District of Columbia, Maryland, Massachusetts, Oregon, Rhode Island and Vermont. See the analysis at www.rwjf.org.
His hope is to eventually open satellite offices in Port Orchard and Poulsbo. Hannawacker said overall the industry is on the rebound and the timing was good to open a new lending office. “If you look at statistics, it’s the best time to buy a home, period,” he said. Guererro, who opened a branch of Guild Mortgage in Old Town Silverdale in June after five years at Legacy Group and 10 in the industry, said the timing for his move was coincidental with the merger. He said he’s been ready to take the next step in his career for some time and has been looking for a company that best matches his career path. He interviewed with several lenders and chose Guild, the seventh-largest lender in the country, based on their culture as well as products. They include loans like VA and FHA as well as loans for buying and refinancing manufactured homes and mortgages for up to 10 properties. “They underwrite and service the loans,” he said. “And the leadership team has created a culture that’s unmatched. It’s infectious and you want to be part of it.” Guererro plans to add a second loan officer to his office soon. “This is going to be better for everybody. I think J.W. Bradley will do well because of their leadership,” he said. “Guild Mortgage is here to stay and when it comes to competition, the consumers will benefit the best.”
July 2013 Edition
Events And Activities VISIT the NEW HBA Website! www.kitsaphba.com On Line Registrations! JULY Big Event! HBA Builders Classic Golf Tournament Per Golfer $115.00 Team $460 Thursday, July 4
Happy Independence Day! HBA Closed Friday, July 5 HBA Closed Friday, July 12 Builders Classic 11:30 Check-in 1:30 p.m. Shotgun Start Rolling Hills Golf Course Thursday, July 25 Executive Cmt. Mtg., 2 p.m. Gov. Aff. Cmt. Mtg., 2:30 p.m. Board of Directors Mtg., 3:30 p.m. REMEMBER! Builders Best Awards Applications DUE August 12th AUGUST Thursday, August 1, 7:30 a.m. Developers Council Mtg. Monday, August 12 Builders Best Awards Applications Due by 5:00 p.m. Thursday, August 29 Executive Cmt. Mtg., 2 p.m. Gov. Aff. Cmt. Mtg., 2:30 p.m. Board of Directors Mtg., 3:30 p.m. VISIT the NEW HBA Website! www.kitsaphba.com Online Event Registrations!
The Code Cycle and Why Every Citizen Should Care By: Teresa Osinski, Executive Vice President, HBA of Kitsap County Every three years the building and fire codes are looked at and tinkered with, whether they need it or not. Hours and hours are spent with code officials and fire professionals from around the country discussing changes. Most of these folks are paid with taxpayer money. The building code is well established and rarely is a major defect discovered and resolved by this process. In fact a small adjustment in the code this year may be reversed in the next cycle. This three year effort of slight adjustments here and there may sound minor but the cost is huge. After the national process is concluded then Washington State’s own Code Council takes a crack at it. Again mostly tax payer paid time is spent considering the new national code and making or debating state level amendments. The legislature has an opportunity to take a shot at the code too (more tax payer paid time) and finally it becomes the State’s building code (with or with out state specific amendments). The local jurisdictions may adopt the State’s building code outright or make local amendments. That process includes more tax payer paid time. The cost of updating codes every three years hasn’t been publicly measured or disseminated, but it has to be many thousands of tax payer dollars as well as thousands of dollars in lost private sector billable time (“taxable time”; time that could be spent generating revenue but is instead spent in classes learning how to comply with the new codes.) The impact of this process is a diversion of taxpayer money to this process and away from other important government services, unrecoverable expenses to the private sector, little if any measurable public benefit, and higher costs for construction and subsequently home buyers and commercial lease rates. Support the legislature in 2014 when it considers extending this process to every 6 years. Contact your local elected officials and tell them you want this to be a priority legislative item for them in 2014 so we aren’t doing this again in 2015.
HBA Builders Classic 2013 Chair: Shawnee Spencer, Umpqua Bank Register today and join us on July 12 for the annual HBA Builders Classic. The theme is Caddyshack and is sure to be another memorable day on the course. The fee is just $115.00 per golfer. All fees include a shared golf cart, player goody bag, on course drink ticket, dinner, and the chance to win any of a number of events of the day. Sponsorships are available and begin at just $50.00. The best investment is a hole sponsorship and is just $150. In addition to being promoted in event publications, hole sponsors will meet every golfer as they play through. Sponsors often decorate in theme and include activities or treats to encourage the golfers to stop for a few minutes to get to know them better. For just $150.00 hole sponsors will be one-on-one with Kitsap’s business leaders. This is a great way to build your network!
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
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July 2013 Edition
Robert Baglio
Lot Shortages May Result in Housing Bubble 2
The housing market is continuing to recover. 2013 President Housing starts are up, sales are up, and prices are stable and increasing at a modest rate. For those in the industry we welcome the resurgence and love to see these promising statistics, but we are cautiously optimistic due to the fragile state of the market. With sequestration, budget battles in the State government, tight constraints on lending, an ever tightening regulatory culture, debt ceiling debates looming, and a very low inventory of available lots the sustainability of this fragile market is very concerning. Perhaps one of the most disconcerting factors is this low inventory of available lots. Many of the lots currently available are extremely difficult to develop due to the environmental constraints. We are also experiencing the emergence of large national builders moving into our area purchasing lots and plats making things difficult for our smaller, local builders. And one cannot ignore the simple fact that due to the difficult economic conditions we have experienced since 2007 not many plats have been submitted for review and approval to our local cities and counties. All of these factors are contributing to the availability of buildable lots. This low inventory of available lots has the ability to create another housing bubble, driving up the prices of housing artificially on a short term basis, potentially setting us up for another correction. Unfortunately, this artificial bubble can send us back into an economic tail spin. So what can we do to avoid developing another housing bubble and the corresponding negative economic consequences? 1. Takes steps to expedite the review and approval process for newly submitted plats. 2. Implement legislation to extend the approval of previously approved projects. This has been done for preliminary plats thanks to the hard work and efforts of our Representative, Jan Angel. She sponsored a bill that was passed into law that has extended the timeframe on preliminary plat approvals, but this extension needs to apply to more permits than just preliminary plats. 3. Make it easier to develop infill lots. Those lots currently located within growth areas that have not been developed to their permitted density need to be tapped. These areas were already determined as areas for urban development. Fulfill the obligations of the County Comprehensive plan and get these areas fully developed. The BJC Group
Our economic recovery is tenuous and our economy fragile. We need to stay cognizant of factors and issues that have the potential to impede or even cause a setback to this recovery. We must remain vigilant and make sure the law makers are aware of the factors that could impact our recovery.
Teresa Osinski
The Fire Code — At what cost?
At least every three years, whether needed or not, the fire officials spend time and Executive money drafting changes to the Vice President local fire codes. During this cycle process at least one local fire jurisdiction approaches at least one local government with a proposal for increased use of mandatory fire sprinklers or other mandates. This year, the request came first to Bremerton while South Kitsap fire asked Port Orchard to make other significant changes. In neither case did the fire professionals bring supporting evidence to bolster their request for increased restrictions. Nor did either jurisdiction require a fiscal impact analysis about the benefits or costs of the proposals. Few questions have been asked about why these changes are needed. What has happened in these communities that justify the increased costs of more restrictions? The facts are that instances of fire have dramatically decreased in structures year over year since 1979 and along with that so too have the instances of deaths in structure fires. Between 1979 and 2001 deaths in US residential structure fires declined 56.2%. It is reasonable to believe that the data updated for today would show a continued decline, and likely a bottoming out. There are just only so many accidents that can be prevented through legislation. Data and studies are readily available that indicate the dramatic improvement to life safety in today ’s construction and in each decade since 1950. Even so, local elected officials seem inclined to want to make the code changes requested by the fire professionals. Rarely do elected officials ask why these codes are necessary. They don’t ask for what measurable benefit, or at what cost. Fire is scary and any death for any reason is tragic. But the instances of fire are so rare and likelihood of death is so small that elected officials simply must be more educated and willing to protect their constituents from unnecessary costs and false promises. No matter how dangerous and scary fire is, it will never be fully eradicated from society. What we must do is prevent fire and have proper safety measures to save lives in the unlikely event of fire. The building codes have gone a long way toward that end. Two studies (one in 1986 and another a decade later in 1996) concluded that when there was a death in a residential structure fire the age of the home was a significant factor. Also important was the type of residential structure (mobile home stock having a higher portion of the annual deaths in structure fires. ). The reason the building code matters is that it sets a standard for construction and requires: techniques to inhibit the likelihood of fire (electrical and heating systems); mechanisms to contain an unlikely fire (fire rated wall separations); and, mandates ways to escape in a fire (locations and sizes of windows for example). Additionally, the required smoke detector/smoke alarm has saved hundreds if not thousands of lives. In 2010 the University of Maryland’s Department of Fire Protection Engineering studied the performance of smoke detectors and sprinklers in residential and health-care occupancies. On the matter of whether smoke detectors save lives or not, the answer was clear and the report states this, “The trend in all of the numerous recent research investigations is that smoke alarms and smoke detectors respond prior to residential or ordinary sprinklers and thus have the capability of providing the earliest warning of a fire to building occupants.” The goal of government in this debate should be to ensure the standard requirements are adequate to protect life safety. With an extremely low instance of structure fires and extremely low instances of death in these fires, adoption of more restrictive fire codes to eradicate fire completely is misguided and not in the best interest of the public. This practice will drive up the cost of all housing and will not result in fewer structure fires or fewer deaths from structure fires. Education on fire safe practices, regular maintenance of smoke detector/alarms, and family emergency exit plans (with all exits accessible at all times) are keys to ensuring the public is prepared in the unlikely event of a structure fire. The HBA would welcome an opportunity to work with local government and our area fire professionals on a coordinated campaign to remind citizens about fire safety. CGP
July 2013 Edition
The Government Affairs Committee has been working overtime to interview candidates in this year’s election. We have been Judy Mentor Eagleson focusing on City Council Mentor Company positions — especially those 2013 Chair who will have opposition in the primary. I have been asked how our interviews take place and what we look for in the candidates we interview. Our interviews are rather informal and take on more of a conversational feel. Our committee ranges from just a few to over 20 depending on schedules. Our questions tend to focus on issues related to the building industry, but because we are also members of our community, the conversations often take on a broader framework. Generally, for new candidates our first question is: Why are you running for office. Is the candidate’s reason well thought out? Do they have a personal agenda or vendetta? Are they a one issue candidate or do they have a full understanding of the issues facing the city in which they are running? We like to talk to candidates that have actually done their homework. The obvious question is: “what are the challenges facing the City?” The more informative question is: “what do you believe to be the solution to that challenge?” It is easy to paint broad brush accusations — but does that candidate really understand those challenges and have realistic solutions? Further, do they know their opponent? We had one candidate tell us what he thought needed to be done. One of our committee members informed this candidate that the incumbent that person was running against was the only one on the current Council doing just that. That candidate had no idea. When talking with incumbents, the conversations vary slightly because we can talk about what that person has accomplished during their time in office and what they plan to accomplish if reelected. After these interviews, the Government Affairs Committee makes recommendations to the Affordable Housing Council of Kitsap County. The Affordable Housing Council is the political action committee of the Home Builders Association of Kitsap County. This Council is responsible for endorsements and contributions to political candidates. At our next meeting, which will be held on June 27th, the Affordable Housing Council of Kitsap County will be making our first set of endorsements. Some endorsements are easy, some very difficult. Nevertheless, whether we endorse a particular candidate or not, we really appreciate each interview and would like to thank each candidate for their time and energy and most importantly, their willingness to step forward.
Government Affairs Committee
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Register & Vote! It’s your responsibility. July 8 - Deadline for voter registration, address change & other updates July 19 - Ballots mailed out & Accessible Voting Units at available voting centers July 29 - Deadline for in-person new Washington State voter registration. NEW ONLY August 6 - Primary Election October 7 - If you missed registration for the primary, today is last day for reg./updating October 18 - Ballots mailed out & Accessible Voting Units at available voting centers October 28 - Deadline for in-person new Washington State voter registration. NEW ONLY November 5 - General Election
2nd Annual HBA Builders Best Awards! NEW DEADLINE! - August 12 NEW AWARD DATE! - September 18 The senior leaders of the HBA know that you are busy! The industry is recovering and many of you are just a bit too swamped to get your BUILDERS BEST award applications filled out and submitted. We appreciate those of you who did, land those of you who asked about an extension. The HBA leadership has agreed to move the event out to the end of summer. Calling all BUILDERS! Now’s the time! These awards are a GREAT opportunity to show the terrific work you do and the NEW construction projects you’ve built. You must be an HBA Builder member to enter. Applications are reviewed by other non-applicant builders who are kept “blind” to the identity of the applicants. These awards are so meaningful because there is a professional panel of experts reviewing and selecting the category winners. Winners are able to use these awards in their marketing and share their award winning projects with potential clients. The marketing opportunity and benefits of these peer given awards are endless. Real estate professionals! Be aware of these awards and encourage your builders to enter! Think of how useful such recognition will be for the project you’re selling! Applications are available on the HBA website or by calling the office at 360-479-5778. Applications now due — AUGUST 12 by 5 p.m. Reception and Awards — September 18 5 p.m.-7 p.m.
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July 2013 Edition
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Thank You Renewing Members 30 Years Olympic Glass Over 25 Years Judkins Drywall Inc (26) Over 20 Years Smallwood Design & Construction Inc (23) PRO-Build of Bainbridge Island (23) Dahl Glass Dansons Landscaping Inc Nicholson Drilling Inc Over 15 Years B Reid Construction Inc (19) Collins Hms/Kitsap Bath Co (19) Hutch-Con Construction (19) Crabtree Drilling Co Mentor Company Kitsap Credit Union Ritzman Constr. LLC Tim Ryan Constr. Inc.
Over 10 Years All Trades Mechanical Inc Pristine Homes LLC Coyote Hollow Woodworks Inc Housing Kitsap 10 Years Creative Countertops Inc Hudson Residential Constr. LLC Creekside Cabinet & Design Inc Over 5 Years Paratransit Systems International (8) Sterling Estates Liberty Bay Bank Over 1 Year Heritage Builders NW LLC The Cadwell Group 1 YEAR Anniversary Darrel Emel’s Tree Service Herdman Plumbing LLC Lyons Painting & Design, LLC
Peninsula Home & Remodel Expo! Reinvest in Your Dream Attention Vendors! Do you have a product that you want Kitsap to know about? The Peninsula Home & Remodel Expo is just around the corner. For information on the Expo visit our website at www.kitsaphba.com and click on the icon for the Peninsula Home & Remodel Expo. Reservation forms, contract, etc will be available for download by the end of June. If you would like to be added to the mail and email list for early notification, please call the HBA 360-479-5778 to be added. This Expo is a great, local opportunity to get in front of a target audience interested in the home they have now, or the one they are planning to have in the near future. Space is always limited, so do not delay! 2013 Peninsula Home & Remodel Expo Dates: October 4, 5 & 6.
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Consultant with Bremerton roots charts new course for port’s marina marketing sign up for the two-year moorage deal, and Wise said that’s a good response in the first few weeks since the offer was announced. “The port has not had 12 new boats come here in a long time,” he said, particularly in such a short time frame. The two-year deal is being offered through July 15, and Wise expects to sign up more boaters whose monthly moorage contracts at other marinas expire at the end of June. Port of Bremertopn photo
Above: Boaters visiting the Bremerton Marina on June 8 for National Marina Day activities gather around a police vessel during one of the day’s boating seminars. Left: The goal of a new marketing strategy directed by consultant Bob Wise is to attract more boats and people to the marina to create a more vibrant atmosphere on the waterfront. Tim Kelly photo
Another piece of his new marketing strategy is offering discounts to owners of smaller boats. All the slips at Bremerton are 36 feet or longer, and moorage fees run $288.25 to $591.63 per month, depending on the size of the slip. But the marina is now charging fees based on the length of boats less than 36 feet, to make moorage more affordable for those potential tenants. Boaters that take that deal are not eligible for the year’s free moorage offer, though Wise said owners of smaller boats typically are looking for seasonal moorage for a few months. Current tenants at Bremerton and the port’s other marina in Port Orchard aren’t eligible for the year’s free moorage offer, Marina, page 24
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July 2013 Kitsap Peninsula Business Journal • KPBJ.com 23
By Tim Kelly, Editor The consultant hired to rev up marketing for the Bremerton Marina thinks offering boaters a heckuva deal is a good strategy to start with. "I think you need to be really aggressive on pricing," Bob Wise said, "to get some new people in here." So how does a year's free moorage sound? The majority of the marina's 220 permanent moorage slips have been empty since the Port of Bremerton built it in 2008, so Wise was brought on board recently to try some new ways to draw more boaters to visit the marina, and possibly sign on as long-term tenants. His first bold move was to offer a “twofer” of sorts: Any new tenants who sign a two-year moorage contract will only be billed for every other month, thus getting 12 months’ rent for free (not including electricity.) "It's enough of an attention-getting offer that as a boater, you can't look past that," Wise said recently, while sitting outside the day before a National Marina Day promotion on June 8, the opening day of boating season in the Northwest. That event drew more visitors by sea and land than the Bremerton facility had seen in a while, and was a good showcase for the marina, he said. About 45 boaters signed up in advance, and many of them availed themselves of free moorage offered that night. Port CEO Tim Thomson hired Wise in May on a five-month contract to do marketing, and the consultant’s goal for that period is to fill 50 of the vacant slips with new boaters. “The port didn't put a contractual number on it, I just said it would be great if we got 50,” said Wise, who’s been actively promoting the offer through social media, including a recently created Facebook page for the Bremerton Marina. As of June 24, the marina had 12 boaters
MARINA
from page 23 but there’s a lesser enticement available for them — pay six months in advance and get a seventh month free. Even though it’s a less generous financial incentive, Wise thinks the current tenants will appreciate it if the new marketing approach enhances the overall
scene at the marina. “I think people want more vibrancy here, more boats and more people,” said Wise, who owns the Port Hadlock marina and brought his family from Bainbridge Island to the Marina Day weekend in Bremerton on their boat, Blue Highways. (The name’s taken from the title of a 1982 book about exploring America’s less-traveled roads designated by blue lines on old maps.)
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PROPERTY FOR SALE OR LEASE Silverdale CBA#501462 2 small office/medical spaces. Fully built out 725-940 sq.ft. in the heart of Silverdale. Joe Michelsen 360-692-6102/360-509-4009. Poulsbo CBA#501452 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. Silverdale MLS#321878 $250,000 Fully Developed industrial lot in an eight-lot development. Prices vary based on public visibility. Lots 1-5 have strong public visibility. Quality controlled by CC&Rs. Retail activity may include plumbing, electrical, tools, paint, fasteners, auto parts, home decorating, etc. Owner can build-to-suit. bob Guardino 360-692-6102/360-710-7844. Belfair CBA#522790 $300,000 This was once the highly successful belfair Valley nursery. 11.93 acres with several out buildings, parking and various growing areas. Victor Targett 360-692-6102/360-731-5550.
24 • Kitsap Peninsula Business Journal • KPBJ.com July 2013
Poulsbo MLS #447811 $660,000 Well performing light industrial project in vibrant Poulsbo is home to thriving businesses w/ongoing leases. 4 of 5 units offered for sale. Contact listing agent for verified proforma. Kelly Muldrow 206-949-3420.
Bremerton CBA#512042 $900,000 Multi use building on Pacific ave in downtown bremerton. 3 commercial suites and 11 residential units and the adjoining 53 space parcel parking lot. Solid cash flow investment. Victor Targett 360-692-6102/360-731-5550. Kingston CBA#218220 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. Mile Hill MLS#281455 $550,000 3,840 sq.ft. 1997 office bldg- excellent condition, in a private setting on .79ac. Reception area, 8 private offices, conference rm, 2 meeting areas & kit. aDa access. Lrg detached 3 car garage has storage/shop. Mark Danielsen 360-692-6102/360-509-1299. Silverdale MLS#484573 $3,500,000 Fully leased, 16,200 sq.ft. office building in Silverdale. Three great tenants with long-term, triple net leases at 7.6% cap rate. no deferred maintenance, hi-tech security system and aDa compliant with elevator. bob Guardino 360-692-6102/360-710-7844.
Port of Bremerton photos
Entertainment by a Navy band and a free barbecue lunch on the breakwater were part of the activities that visitors enjoyed on National Marina Day at the Bremerton Marina. Wise, who grew up in Bremerton, submitted one of two proposals the port commissioners received several months ago when they solicited for private management to take over the unprofitable Bremerton Marina and reduce its operating losses, which were nearly $400,000 a year. The commissioners didn’t accept either proposal, but cost-cutting moves soon followed when Thomson implemented a restructuring plan for port operations that included management and maintenance staff cuts at the marinas. As this year’s boating season
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approached and the marina’s marketing needed a boost, port officials reconnected with Wise. “They called me,” he said. “They needed a consultant and asked if I’d be interested in helping out on a short-term basis.” Besides an increased presence on Facebook and Yelp, Wise has been getting the word out about the marina online through boating news websites and blogs. He’d also like to see more festivals and events hosted at the marina and on Bremerton’s waterfront. A recent Three Sheets Northwest article highlighted the two-year moorage offer and mentioned the ongoing revitalization of Bremerton’s downtown area, which Wise sees as enhancing the marina’s appeal to visiting boaters. “I think boaters would love to come here and take advantage of these amenities,” he said. That article also stirred debate in the comments section about how much of a problem tidal exchanges from the Port Washington Narrows cause for boaters navigating in and out of the marina. “For about an hour, twice a day, the current in the marina is pretty strong, and the rest of time it’s fine,” Wise said. “It’s probably the only negative thing you can say about the marina.” He’s passionate about boating and hopes his marketing approach will have a positive impact, but he realizes it will take longer than his time at the marina this summer to turn things around. “I think we’ll get ’em going in the right direction,” he said, “but it’s not going to be an overnight success.”
Dr. Larry Heggerness of Bremerton has been a dentist for 47 years and has no plans to retire any time soon from the profession he still loves. The 75year-old’s other great passion, which led him on notable adventures even before he became a dentist, was mountain climbing. Tim Kelly photo
Longtime dentist’s career has seen many high points When Huntley finished dental school in 1984 and was considering some job offers, he again sought out Heggerness. "He just said come to work for me," said Huntley, who did just that for six years before moving on to his own practice. "In my case, what he did was once he brought me on, I became kind of the primary dentist in that practice," he recalled. "He worked at other practices to build those up, and I think he then sold those to other dentists." But things are different now for young and experienced dentists, and the profession is evolving, Heggerness said. "Dentistry in the future is going to be corporations, that open huge facilities and dentists will work as employees," rather than making the time commitment and financial investment to run their own practice as a small business. "Things have changed," he added, "and now dentists are kind of in limbo because we don't know what Obamacare is going to do to our practice." To deal with financial challenges such as insurance companies reducing reimbursement rates, some dentists are creating group practices to share expenses, Heggerness said. Still, even though he notes that "it's a tight, tight business," he remains enthusiastic about his profession and isn't thinking of retiring, even though he recently turned 75. "I love what I do," he said. Always one to pursue new ventures, his latest is partnering with other investor dentists to open a children's clinic in Tukwila that will employ specialists in orthodontics, oral surgery, etc. "It's going to cater to children on public assistance," Heggerness said. Huntley said it's "amazing" that his former mentor keeps going, "because dentistry is a very physical job. Somebody who's able to stick with it until 75 has my respect." Dentist, page 33
Now Accepting Online Nominations! We are now accepting nominations for the Kitsap Peninsula Business Journal’s annual 40 Under Forty leadership recognition program! Do you know someone outstanding in their industry or profession who is deserving of recognition? Help us highlight the best and brightest young business leaders on the Kitsap Peninsula. Individuals must be under the age of 40 on Sept. 15, 2013 for consideration. C O R P O R A T E
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July 2013 Kitsap Peninsula Business Journal • KPBJ.com 25
By Tim Kelly, Editor When Dr. Larry Heggerness says he’s been to the mountaintop, he’s not speaking metaphorically. The Bremerton dentist who’s spent 47 years as a “tooth mechanic,” as he calls it, was a world-class mountain climber long before he extracted his first molar. That avocation is why he’s perhaps the only dentist who ever won an Emmy — for his work filming and producing a documentary in 1974 about an expedition he led on 20,328-foot Mt. McKinley in Alaska. Besides the physically grueling ascent, Eggerson recalled the challenge of keeping their old Bell & Howell cameras functioning in sub-zero temperatures. His adventures in the rarefied air of mountain peaks weren't the only thing he became known for. As he became a successful dentist, he was known for his willingness to hire young dentists who weren't financially able to start their own practice, and help them get established in the profession. "These young dentists were coming out of dental school with big student loans to pay off, and banks don't want to loan money to people with a lot of debt," Heggerson said. "I would bring these dentists in and hire them, and encourage them to save their money." Sometimes following that advice eventually led to buying the mentor out of his own practice. "That was a much easier way to have them get in the business than having to take on a big debt," said Heggerness, who's been in Bremerton the past 30 years. He said he previously owned as many as five dental practices around the Puget Sound region. Dr. Michael Huntley, a Silverdale dentist, said Heggerness influenced his career choice. As an undergraduate at the University of Puget Sound, where students did an "immersion month" as a sort of internship, Huntley said his was time well spent with Heggerness, a UPS alum who was then on the school's board of trustees.
Don't let investments take a vacation By Edward Finholm At long last, summer is almost here — which may mean it’s time to put together your traveling plans. Still, while you and your family may enjoy going a summertime trip, there’s one part of your life that should not go on vacation — and that’s your investment portfolio. So, what can you do to help your investments keep on working all year long, year in and year out? Here are a few suggestions: Don’t chase after “hot” investments. Many times, you will hear about a hot investment, usually a stock. However, by the time you hear about such an investment, it may already be cooling off. Even more importantly, it might not have been appropriate for your needs — and any investment that has either “flamed out” or wasn’t right for you in the first place will not be a “hard worker” in your portfolio. Monitor “lazy” investments. Under the right circumstances, just about any investment could be of value to you. However, under different scenarios, those same investments may not be doing as much for you. To cite one example, when interest rates are at historic lows, as has been the case recently, and your portfolio contains a relatively large amount of shortterm, fixed-rate vehicles whose interest
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payments don’t even keep up with inflation, they could be considered “lazy” investments. Look for the “multi-taskers.” In most aspects of life, multi-taskers are valuable — and it’s the same in the investment world. Can you find a particular type of investment that may be able to achieve multiple goals at the same time? Consider dividend-paying stocks. If you need the income to supplement your cash flow, you can cash the dividend checks. And since some companies tend to increase their dividends, your investment in these stocks can serve as a source of potential for rising income, helping keep you ahead of inflation. Furthermore, if you don’t actually need the dividends to support your income stream, you can reinvest them to increase your ownership stake — a method of building your overall wealth. Finally, many dividend-paying stocks also offer significant growth potential. Keep in mind, though, that there are no guarantees, because companies can lower or discontinue their dividends at any time. And, as you know, stocks are subject to market risk, including the potential loss of principal invested. Don’t take a “time-out” from investing. The financial markets regularly move up and down. During the down
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times, it’s important not to get so discouraged that you decide to take a “time out” from investing until “things get better.” No one can really predict when a downturn will end, but you don’t want to be on the investment sidelines when the market turns around — because the biggest gains can occur in the early stages of a rally. And in any case, if you’re not constantly investing, or at least exploring new investment opportunities, your portfolio could begin to
stagnate — or even become “unbalanced,” in which case it may no longer fit your objectives or your risk tolerance. By following the above suggestions, you can help keep your investments working for you this summer — as well as fall, winter and spring. The road toward achieving your financial goals is a long one, so try to keep moving. • Edward Finholm is an Edward Jones financial advisor in Kingston.
Plan ahead for your own financial Independence Day By Debi Tanner This week, we celebrate Independence Day with fireworks, sparklers, picnics and parades. Amidst the hoopla, though, it’s always important to reflect on the many freedoms we enjoy in this country. And as an individual, you may want to use the occasion to think of another type of independence you’d like to enjoy — financial independence. In some ways, we are living in a time when attaining financial freedom is more difficult than it has been for quite a while. We’re still recovering from the bursting of the housing bubble and the lingering effects of the Great Recession. Furthermore, wage stagnation is a real problem. In fact, median
income for working-age households — those headed by someone under age 65 — actually slid 12.4 percent from 2000 to 2011. Taken together, these factors certainly impose challenges on anyone seeking to become financially independent and eventually enjoy a comfortable retirement. Still, you need to do everything you can to put yourself on the path to financial independence. For starters, make full use of whatever resources are available to you. If you have a 401(k) or similar retirement plan at work, try to contribute as much as you can possibly afford — and every time Plan, page 27
Take Charge of Your Future.
26 • Kitsap Peninsula Business Journal • KPBJ.com July 2013
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Solving for the retirement income gap By Jason R. Parker The retirement income gap is simply the difference between your budget and your guaranteed income sources. For example, if you have a budget that requires $5,000 per month of income in today's dollars, and you have guaranteed income from Social Security and pensions of $3,000 per month, then your gap is $2,000 per month. One of the ways you can create the greatest amount of confidence in your retirement income plan is to solve for the gap using strategies that have the least amount of volatility. Each solution to solving for this gap has varying degrees of risk. If you are ultra-conservative, then you might consider laddering certificates of deposit and living off the interest income to cover the gap. Or maybe you ladder annuity contracts and create guaranteed income using annuities. If you are willing to assume more risk, perhaps you would prefer to buy a diversified portfolio of individual corporate and treasury bonds and live off the income while planning to hold the bonds to maturity, or maybe if you are comfortable with even more risk you consider buying a diversified dividend-paying stock portfolio and only live off the income that is generated and never touch the principal.
Many ways exist to build a portfolio to solve for the gap, but the important thing is that you have a plan in place, you understand the risks associated with your plan, and you stick with the plan in good times and bad. Getting caught up in the euphoria of the markets is easy. In good times, we get greedy and want more. In bad times we want more safety and just don't want to lose our principal. If you don't stick with the plan, then you will always be shifting from one great idea to the next and will end up with very little confidence that your plan will work. Most of the people we serve are very conservative. They want to have a high degree of confidence that the numbers are going to work regardless of market conditions and so we tend to design plans starting with the most conservative options first and then, depending on each client’s appetite for risk, we can assume more risk. Retirement is all about cash flow, not your net worth. Your income is what will allow you to enjoy the lifestyle you have worked hard for. I believe designing a plan with the highest probability of success and the least amount of volatility helps most people feel better about their retirement income plan. Be sure you find an adviser who will help you create a plan the way you want it done. • Jason Parker is the president of Parker Financial LLC, a fee-based registered investment advisory firm working primarily 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. 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-in-retirement.com.
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about The Next Big Thing in the investment world from so-called experts who often have poor prognostication records. Even more importantly, though, their advice may simply be inappropriate for your needs and risk tolerance. Finally, consider these two suggestions: Maintain adequate liquidity and keep your debt levels as low as possible. By having enough cash reserves to cover unexpected costs, such as a major car repair or a new airconditioning unit, you won’t have to dip into your long-term investments. And by keeping your debt payments down, you’ll have a stronger cash flow, which means you’ll have more money available to save and invest for your future. Each one of these suggestions will require a commitment on your part, along with a clear focus on your goal of financial independence — there just aren’t any “short cuts.” But with a consistent effort, you can keep moving along on your journey toward your own Financial Independence Day. Debi Tanner is an Edward Jones financial advisor in Kingston.
from page 26 you get a raise in salary, increase your contributions. At the very least, put in enough to earn your employer’s matching contribution, if one is offered. Also, within your 401(k) or similar plan, choose an investment mix that offers you the chance to achieve the growth you will need to make progress toward the type of retirement lifestyle you’ve envisioned. In addition to contributing to your 401(k), you can also take advantage of another retirement account: a traditional or Roth IRA. Like a 401(k), a traditional IRA grows tax-deferred, while a Roth IRA can grow tax-free, provided you meet certain conditions. Plus, you can fund your IRA with virtually any type of investment, including stocks, bonds, certificates of deposit and Treasury securities. What else can you do to help yourself move toward financial independence? For one thing, don’t become dependent on “hot tips” or other questionable financial advice
Peninsula Credit Union now offers wealth management services
Financial adviser recognized with two Edward Jones awards Teresa Bryant, an Edward Jones financial advisor in Bremerton, recently received two awards from the company recognizing her performance. The firm's Eagle Award recognized her "clear vision of both client and business goals" over the past year. Bryant was one of only 1,510 of the firm's more than 12,000 financial advisors to receive the award. She also was one of 922 of the firm’s financial advisers to receive the Ted Jones Entrepreneurial Award for her exceptional achievement in building client relationships. "When you work for a firm that is known for its outstanding service," Bryant said, "it's quite an honor to be singled out for your service record." Jim Weddle, Edward Jones' managing partner, added, "Teresa is an outstanding member of the Edward Jones team who personifies the ideal financial advisor, someone who is 100 percent dedicated to serving the financial needs of her clients.” Edward Jones (www.edwardjones.com), headquartered in St. Louis, provides financial services for individual investors in the United States and, through its affiliate, in Canada.
July 2013 Kitsap Peninsula Business Journal • KPBJ.com 27
Peninsula Credit Union has partnered with Bryan Pettit of Shelton and CUSO Financial Services, L.P. (CFS) to provide wealth management services to its members. Pettit is a financial representative, registered through CFS, who provides investment and insurance services to Peninsula CU members. His goal is to help members develop a plan that is personalized to help address their individual needs. “We are very excited about this partnership offering retirement and wealth management services to our members,” said Jim Morrell, president and CEO of Peninsula Credit Union. “Their investment products will provide even more financial value to credit union members as well as access to the tools and consultation critical to helping people make informed financial planning decisions.” Pettit will be sharing his time among PCU branches meeting with anyone that would benefit from these services. Peninsula Credit Union is a not-for-profit, full-service financial institution owned and managed by its 18,000 members in Kitsap, Mason, Jefferson, Clallam and Grays Harbor counties. For more information about Peninsula Credit Union, visit the website at www.pcfucu.org.
28 • Kitsap Peninsula Business Journal • KPBJ.com July 2013
P.R.E.P. does composting on a commercial scale By Rodika Tollefson Gig Harbor and Key Peninsula gardeners who utilize yard debris collection services are not only keeping their yards in meticulous shape, they are also helping Kitsap gardeners. The organic waste collected from around Pierce County — everything from recycled Christmas trees to grass clippings and dead leaves — becomes organic compost that is currently sold exclusively through Vern’s Organic Topsoil in Poulsbo. The compost is produced in Purdy, near Gig Harbor, under the brand of P.R.E.P. (Pierce Recycled Earth Products), at a facility owned by Pierce County and operated by Pierce County Recycling, Composting and Disposal, LLC (doing business as LRI). Owned by parent company Waste Connections, Inc., LRI (http://lriservices.com) also operates the county’s transfer stations, including those in Key Center and Purdy. The Purdy compost facility is the first one the company began operating. Built as state-of-the-art for its day back in the late 1980s, it produces close to 40,000 cubic yards of compost per year. LRI’s business model is to sell the product wholesale a year in advance, so Vern’s trucks pick up multiple loads daily. Vern’s then both sells the compost at retail and blends it into other retail products, such as mulch, topsoil and garden mix. “What makes our compost different is the quality, the fact that we’re stringent about what we take,” said Don Taylor, assistant district manager for composting operations. The material that is delivered by commercial trucks as well as individuals to the Purdy facility is first loaded up for hauling to Puyallup, where it is ground. When it comes back to Purdy, it begins a
Photo by Rodika Tollefson
Don Taylor, right, assistant district manager for composting operations at Pierce County Recycling, Composting and Disposal, chats with operator Steve Wandke while visiting the Purdy composting facility. 30- to 45-day process (the length depends on the time of year) to become weed-free, chemical-free compost. Although this facility is not certified organic, it uses the same methods as the company’s Puyallup location, which does have the certification. There are just two major differences between the two: The Puyallup facility, built in 1998, is completely enclosed since it’s located in a residential neighborhood. It is also entirely automated for temperature, moisture and oxygen control — Taylor can even monitor things remotely from his iPad. The company acquired its newest composting facility, Silver Springs Organics in Thurston County, in November. The operations are modeled after Purdy but
• To see a behind-thescenes video of P.R.E.P. compost in the making, visit kpbj.com.) there’s one distinct physical difference — a 5-acre roof. (The compost from the other two locations is sold wholesale to Corliss Enterprises.) “Each location needs different protection for odor and we’ve also tried to incorporate improvements and things we’ve learned from the other facilities,” Taylor said. The composting mimics the natural process, except it’s accelerated four times or more. What takes Mother Nature four to six months takes LRI 30 days in the summer and about 45 days in the winter. “The floors are aerated and we monitor the material to maximize temperature, moisture and oxygen to maximize speed,” Taylor said. “We just give the natural microbes all the conditions to do what they do.” The material goes through three stages once it arrives at Purdy. First, it is added in rows to the active composting floor, where a 130- to 160-degree temperature is maintained. A row turner mixes and moves each row twice a week, while hydrating and monitoring the aeration. In the meantime, the bacteria do all the breakdown work — forming a tell-tale white, “snow-like” cover on the piles, which are constantly
emanating steam. Once the material makes its way through each row of the compost floor and reaches the far wall, it has met all regulations and can be moved to a curing area for a week to 10 days. There, the temperature is lower and the material cools off and stabilizes. When that final row moves to curing from the active compost floor, a new row of freshly ground debris can be added to the front to start the process over. “Everything is done in unison,” Taylor said. The final stage is a three-phase screening. Pierce County recently invested in a new screening plant, which allows for the screening process to be completed in one day instead of two and a half. Taylor expects that after applying some efficiencies learned at the Puyallup operation, the Purdy process can become about 10 percent more efficient thanks to the new screeners. While the county owns the facility and all the fixed equipment, LRI provides the heavy machines and the five employees who staff the site. The operation is open, rain or shine, all year long except for three major holidays. “In the winter, the material turns differently. As soon as you fill the building with one material and you get used to it, it changes (because of the season),” Taylor said. Taylor started with the company 20 years ago as a laborer (before it was acquired by Waste Connections). As the manager overseeing composting operations, he travels around constantly from one location to another, including the smaller facility in Tacoma — the only one that accepts food waste, and a very small amount at that. (Pierce County recently explored the idea of a residential food waste program but decided not to launch one, citing challenges associated with food waste processing.) He said another thing that distinguishes his company besides quality is the employee training. Although it’s not required by the county, all key employees go through a 40-hour course in compost facility operating. “We want them to understand why they’re doing this and the importance of the microbes,” Taylor said. In addition to being used in landscapes and gardens, P.R.E.P. is popular with the state Department of Transportation and other agencies for erosion control due to its water-retention qualities. More than 200,000 tons of waste a year is accepted at the four LRI facilities. “We’ve grown every year,” Taylor said. “We’ve grown by leaps and bounds.”
EnviroStars program helps businesses reduce hazardous waste, be green By Rodika Tollefson Kitsap businesses such as Indigo Painting, Sunrise Pest Management, Valley Nursery and Woodside Animal Hospital offer entirely different services but they have one thing in common — they are recognized for their environmental stewardship. Those local companies, along with more than 100 others, are certified through the EnviroStars (envirostars.org) program for their hazardous waste management and other green practices. The program is nonregulatory and its goal is to give incentives for small businesses to reduce hazardous materials and waste; it is also open to nonprofit and public agencies. It was launched in King County in 1995 as part of the Local Hazardous Waste Management Program and has since expanded to six other counties. Businesses can participate for free, and in many cases they already have green practices in place that qualify them for one of the certification levels (one to five stars). “Many do it because of their connection to Puget Sound and their appreciation for the environment, along with their sense of community and responsibility,” said Bryan McKinnon with Kitsap Public Health District, coordinator of Kitsap EnviroStars. EnviroStars works in conjunction with programs such as the state Local Source Control program and Clean Marinas (overseen by Puget Soundkeeper
Alliance), but businesses don’t have to be part of those programs to be certified through EnviroStars. Since McKinnon came on board with the health department a year ago, he has focused on the maritime industry, certifying the four Washington State Ferries terminals as well as the Port of Kingston Marina. “It’s an extra incentive, one more reason to do things we’ve been talking about doing to be on the cutting edge,” said Kingston marina harbormaster Kevin Van Vliet. The port is a taxing district run under an elected board of three commissioners. Its marina, which includes permanent mooring and guest slips, received a fourstar EnviroStar certification in April, and was also recently designated a Clean Marina. Van Vliet said many of the best management practices for the EnviroStar qualifications were already in place and they had to do some additional things such as better hazardous waste signage and education of tenants. “A lot of it was peer education and finetuning things,” he said. The port, however, didn’t stop after getting the four stars, and is looking at expanding its environmental practices. Some ideas include providing spill kits and making storm-water improvements. “As a public agency, you feel more
obligated to do your due diligence. We put a lot back into our port for the community,” Van Vliet said. For Yachtfish Marine Northwest, a marina and boat repair business on the Port Orchard waterfront, being green also means being a leader in the industry, according to office manager Amy Warden. The owner of the previous business at this location was already following environmentally friendly practices, she said, but when the ownership changed about three years ago, those efforts were stepped up. Yachtfish is a five-star EnviroStar and Warden said that’s important for their industry. “It shows how green we are. We want to have a good business but we also want to keep the environment and people safe,” she said. The company recycles all the hazardous materials and chemicals and has spill kits that are used even for small spills. All substances are kept in dual containment systems and there’s a huge water-filtration system for pressure washing that ensures the gray water doesn’t run into the bay. Warden acknowledges that some of these efforts are expensive — such as the water filtration — but notes there are various competitive advantages as well as benefits with regards to OSHA and WISHA compliance. Like the Port of Kingston, Yachtfish continues to look for more improvements
Look for EnviroStars Marinas & Boatyards
Ferry Terminals: Kingston • Bremerton Bainbridge Island • Southworth
Port Orchard Railway Marina
Port of Kingston
Brownsville Marina — Port of Brownsville
Bremerton Marina — Port of Bremerton
Wharf Marina — Port of Winslow Yachtfish Marina
Port Orchard Marina
SM
CERTIFIED
Port Washington Marina Eagle Harbor Marina
Bremerton Yacht Club
Find an EnviroStars-certified Marina/Boatyard at:
www.EnviroStars.org
EnviroStars is an environmental certification program provided by local government agencies in partnership with Washington Department of Ecology. It is a service of the Kitsap Public Health District.
July 2013 Kitsap Peninsula Business Journal • KPBJ.com 29
It’s Boating Season…
it can implement to be green. Warden said that among other things, the company is researching sump containers for the diesel fuel tank, which will prevent oil from going into the water in case of a spill. The measures that businesses undertake to certify for EnviroStars are voluntary and McKinnon serves as a technical adviser. He said being part of the program gives participants access to his expertise, as well as benefits of branding and advertising. “They can get technical assistance, information about best practices and new technology for safer alternatives. It’s almost like no-cost consulting — it gives them access to someone who keeps abreast of changes in best-management practices and alternative techniques,” he said. After targeting marinas for the past year, McKinnon is working to identify other local industries that are a good fit for the program. Two sectors he’s tried to attract are painting contractors and tattoo parlors, but with limited success so far. “I feel the need to be creative and look outside the box for businesses generating dangerous waste and give them an opportunity,” he said. “I feel like the program is due for some revitalization.” One way to do that may be by educating the public about patronizing EnviroStar businesses, he said. “So often we appeal to the businesses to certify; it may be time to appeal to the public for support,” he said.
Bainbridge Island’s new museum is a work of art itself
30 • Kitsap Peninsula Business Journal • KPBJ.com July 2013
By Tim Kelly, Editor What you’ll see and what you won’t see at the newly opened Bainbridge Island Museum of Art (BIMA) opens are equally impressive. Architecturally, the building is as stunning as you’d expect, standing on the island’s most prominent street corner at Winslow Way and State Route 305. Artistically, the museum’s galleries on two floors display the diversity of works that talented regional artists create in various genres. And environmentally, features incorporated into the museum’s design and structure — whether visible or not — reflect choices made with an eye toward certification as the state’s first LEED Gold museum. The museum, which is expected to be a major tourism draw for the area, opened June 14 with a ribbon-cutting ceremony on the outdoor plaza. The $15.6 million capital campaign to purchase the site and build the museum has raised more than $15.3 million in donations and pledges, from contributions ranging from $50 to $4 million. That includes a $502,000 Building for the Arts state grant, and a $500,000 matching gift from Debbi and Paul Brainerd to create an endowment for the museum. There are additional naming opportunities for indoor and outdoor spaces available for major donors.
fundraising campaign, said Cynthia Sears, the museum’s founder. “We’re being flooded with small donations, and we had some exceptionally generous early donors.” When visitors ascend the broad, open staircase in the 20,000 square-foot museum’s two-story atrium, they’ll reach the second-floor landing that is the Beacon Gallery named for Sears, who donated numerous works from her private art collection. That smaller space has an opening display titled Sea'scape created by sculptor Margie McDonald in her studio in the woods near Port Townsend. The array of underwater-themed pieces on the walls and suspended from the high ceiling were fashioned from reclaimed marine junk the artist found on shores. Tim Kelly photo McDonald is the type of Museum founder Cynthia Sears stands in the outdoor garden area on the second floor with executive director Greg Robinson “emerging” artist whose work the museum wants to and board of directors president Chris Snow. offer space for, along with “It is astonishing to me how generous the more extensive collections of established community has been, and supportive, artists from the Kitsap and Olympic especially after we went public” with the peninsulas and the Puget Sound region.
“Our mission is to focus on local artists,” said Greg Robinson, the museum’s executive director and lead curator. He said Bainbridge Island has an impressive concentration of artists. However, that wasn’t well known throughout the community, which is part of why Sears wanted to establish a museum to collect and display all that local artwork. “The community really didn’t have a sense of the incredible wealth of art and craft here,” Sears said. “You can’t appreciate and preserve what you don’t know about.” One of the more well-known local artists with an exhibit for BIMA’s opening is Barbara Helen Berger, a longtime Bainbridge Island resident whose display will include some of her original artwork for children’s books she wrote and illustrated. Berger, whose best-known book is “Grandfather Twilight,” also will have some of her paintings and other works in the firstfloor MESA Gallery, which will be a display area for children’s and youth-themed art. The first floor’s larger Jon and Lillian Lovelace Gallery is where works from the museum’s permanent collection will be displayed. Many of those works have been donated from local private collections. One such item is a life-size statue of a female figure that local sculptor Phillip Levine created, which had been in the backyard garden at the home of author
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Museum, page 31
Benefit event hosted at Clearwater offers concert, auction, golf tournament
MUSEUM
from page 30 Barbara Winther and her husband, Grant. The statue needed sprucing up for its move indoors, and Levine himself came down to the museum to clean and polish his creation. On the second floor is the largest exhibition space, the Rachel Feferman Gallery, which will have a curated exhibition for the museum’s opening featuring works of more than 50 painters, sculptors, artisans and photographers. The gallery will be used for artist retrospectives and special collections on loan to BIMA. If many of the artists whose work will be showcased at the museum are not well known in art circles or beyond, the exposure for their work will help change that, Sears said. “I have told our donors that what we guarantee you is in 50 years, (the artists) will be famous,” she says, adding with a smile, “and if not we’ll give you your money back.” Off one end of the second-floor main gallery is the Sherry Grover Room, which has display cases filled with Sears’ donated collection of art books. This space will also be available for use as a conference room. The second floor also includes a small outdoor patio and garden. The museum was designed by Bainbridge architect Matthew Coates and built by PHC Construction. The distinctive curved glass wall on the building’s west side has three sections of exterior wood louvers that close as needed to control sunlight exposure and heat buildup inside the museum. That’s the most visible “green” feature, but one of the most important though unseen components in the sustainability design of the museum is a geothermal heating system. It draws water from 14 wells up to 400 feet deep on the property. There are also rooftop solar panels that produce 14 kilowatts of electricity, and the building’s construction used a variety of recycled materials such as denim insulation in the walls. The museum’s mission also includes community education, which has been offered since the summer of 2011 with classes and programs been held in BIMA’s two classrooms and auditorium in the Avalara building adjacent to the new museum.
Tim Kelly photo
The curved staircase in a two-story atrium leads to galleries on the second floor of the Bainbridge Island Museum of Art.
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SUQUAMISH — A free concert by Seattle band Ayron Jones and The Way on July 11 at the Clearwater Casino Resort is slated to kick off the Greater Trinity Academy Celebrity Golf Classic, which will be held the next day at White Horse Golf Club. Prior to the 7 p.m. concert, the public is invited to participate in live and silent auctions featuring autographed sports memorabilia donated by celebrities including Mariano Rivera, Shaquile O’Neal, LeBron James, Kobe Bryant and Peyton Manning. All proceeds benefit Greater Trinity Academy, which provides early learning and afterschool programs for children of diverse ethnic backgrounds and income levels throughout Snohomish County. The auctions will be held on Clearwater’s waterfront lawn. The public can register to receive bidding numbers beginning at 5:30 p.m. The live auction starts at 6:15 p.m. The public is welcome to play in the Celebrity Golf Classic Tournament on July 12. The day will begin with a 9 a.m. brunch prior to the 18-hole scramble event, which will include celebrities such as former Seattle Seahawks Ken Easley and Dave Krieg. Entry fee for the tournament is $300 for individuals and $1,000 for foursomes. Fee includes admittance to a Celebrity VIP Reception prior to the Ayron Jones and The Way concert on July 11. For information/registration, contact Kate West, katieann90@hotmail.com or 425710-9699. Registration deadline is July 8.
Reducing energy use can improve fiscal health of hospitals Innovative design strategies deliver up to a 62 percent reduction in energy use, a healthier environment — and a significantly better bottom line PRNewswire A groundbreaking study provides an innovative and cost-effective way for newly constructed hospitals nationwide to reduce energy consumption by an average of 62 percent. The study, titled Targeting 100, identifies a process that integrates architectural, mechanical and central plant systems to deliver significant efficiencies. The proven strategies can be implemented today using existing technologies in any climate zone, giving it important national — and even global — implications. The research team, a collaboration between IDL, NBBJ, SOLARC, TBD Consultants, and peer reviewers from all aspects of hospital design, construction and operation, looked at six diverse climate zones in the United States' most populous regions — including New York City, Los Angeles, Chicago, Houston, Phoenix and Seattle — to determine if integrated design
methods could cut energy consumption and operating costs. By combining energy-reduction design solutions — including sun and daylight shading controls, vacant room sensors, outdoor air supply with heat recovery systems, modified air delivery systems, thermal energy storage, and improved airtightness and high insulation values in windows and walls — a newly constructed, code-compliant Targeting 100 hospital saves between $500,000 and $800,000 a year in energy costs. The biggest breakthrough comes from addressing the reheating of centrally-cooled air, which represents more than 40 percent of annual heating energy usage. The new research extends a regional study conducted in Seattle in 2007. The U.S. Department of Energy and the Northwest Energy Efficiency Alliance's BetterBricks granted the research team $1.3 million to extend the study nationally. Implementing Targeting 100 strategies increases design and construction costs by a minimal 3 percent but leads to an average 9 percent return on investment each year thereafter. An average hospital — functioning at a 2-3 percent operating margin — must generate an extra $20-30
million in revenue to have the same impact on the bottom line. Put simply, by reducing operating costs, a hospital can improve its operating margin by 25-33 percent. Depending on the climate zone, local construction and utility costs, and design scheme, hospitals can see up to a 51 percent return on investment . In the face of widespread uncertainty about healthcare reform's fiscal impact, these strategies reduce the pressure on hospitals to increase the volume of services to sustain already minimal revenue margins. Forward-thinking facilities can implement these strategies today to provide opportunities for both gain and good. Visit http://www.idlseattle.com/t100/ HOME.php for comprehensive study results. Visit http://pitch.pe/10nZg8G for a more comprehensive release with source information. About the Study Partners • The Integrated Design Lab (IDL) is an extension of the University of Washington's College of Built Environments, Department of Architecture. The IDL gives design and ownership teams access to the best building performance knowledge
available. www.idlseattle.com • BetterBricks is the commercial building initiative of the Northwest Energy Efficiency Alliance (NEEA), supported by Northwest electric utilities. BetterBricks guides and inspire building professionals to embrace best practices, improve energy performance and achieve their sustainability goals. www.BetterBricks.com. • NBBJ is a global architecture, planning and design firm with offices in the United Kingdom, North America, the Middle East and China. Its healthcare practice was recently named Firm of the Year by Healthcare Design, the No 1. Green Healthcare Architect by ENR magazine, and Most Admired by Peers in Healthcare by Interior Design magazine. www.nbbj.com • SOLARC is an engineering and energy and architectural consulting firm with offices in Eugene, Portland, Seattle and Salt Lake City. www.solarc-ae.net • TBD Consultants is a project and construction cost management firm headquartered in San Francisco, with offices in Seattle and San Diego, that offers guidance and control for all types of architectural construction projects. www.tbdconsultants.com.
32 • Kitsap Peninsula Business Journal • KPBJ.com July 2013
Kitsap County approach generates energy savings and cost savings Kitsap County has taken aggressive steps to reduce energy use and costs at county facilities over the past three years. Kitsap County set a goal to reduce energy use 30 percent at county facilities by 2020 and has reduced usage 11 percent through the end of 2012 compared with the baseline year of 2009. These efforts generated over $373,000 in energy savings, as outlined in the recently released 2012 Energy Wi$e Report. “Our internal efforts to increase both energy efficiency and conservation have generated significant savings over the past three years,” said Commissioner Charlotte Garrido. “We’ve focused on a combination of building retrofits, employee engagement, departmental energy challenges, and operations and maintenance improvements to drive savings. These programs are replicable and scalable for other organizations in our community.” Kitsap County achievements outlined in
the 2012 Energy Wi$e Report include the following: • Energy-efficiency retrofits at three parking lots and six county buildings, including the county’s first interior LED light installations at the Household Hazardous Waste Facility. • Received $44,088 in rebates for energy-efficient building retrofits and conservation incentives from Puget Sound Energy. • Completed energy audits at the Suquamish, Manchester and Kingston sewer utility plants and at 15 pump stations. • Adopted an updated Space Heater Policy outlining safety and energy usage criteria for approved use of personal space heaters in county facilities. • Selected as the first county in Washington to join the Better Buildings Challenge with a commitment to reduce energy use 30 percent by 2020.
Kitsap County also participates in Puget Sound Energy’s Resource Conservation Manager Program which targets no-cost and low-cost actions for operations and maintenance and employee behavior change. More than 80 buildings have received energy audits and detailed Facility Action Plans that identify no-cost, low-cost, and longer-term capital investment opportunities for both increased energy and water conservation. The county’s Resource Conservation Manager is working with all departments and employees to continually address no-
cost conservation opportunities, as was demonstrated with the recent Courthouse Energy Challenge. The May 2013 Courthouse Energy Challenge resulted in 6 percent energy savings and almost $1,000 in cost savings compared with previous energy utility billings for the month of May. These savings were derived completely from the implementation of no-cost employee behavior changes. For more information, please visit www.kitsapgreen.org or contact Autumn Salamack, Resource Conservation Manager, at asalamack@co.kitsap.wa.us.
Westbound Tacoma Narrows Bridge scheduled for weekend closure TACOMA – From 10 p.m. Friday, July 12, through 4 a.m. Monday, July 15, crews working for the Washington State Department of Transportation will close the westbound Tacoma Narrows Bridge to replace a problematic expansion joint. During that time, State Route 16 traffic will be reduced to two lanes in each direction and both directions will use the eastbound bridge. Over the extended weekend, WSDOT will reduce the SR 16 speed limit to 35 mph, and close the westbound SR 16 exit to 24th Street Northwest and the 24th Street Northwest on-ramp to eastbound SR 16. This work had originally been scheduled in April but was postponed pending delivery of the unique expansion joint. When WSDOT built the 2007 bridge, it included road work specifically designed to accommodate traffic switches between the two bridges. The weekend closure will be the first time WSDOT will enact that configuration, and it was chosen over several nightly westbound closures. Tolls will continue to be collected in the eastbound direction over the weekend. Drivers can check travel conditions and learn about upcoming construction by downloading the WSDOT mobile app, visiting tacomatraffic.com, or by dialing 5-1-1.
What about the rest of us? By Don C. Brunell, Association of Washington Business The newspaper Politico reports that dozens of members of Congress and their staffers are so worried about rising premium costs under the Affordable Care Act (ACA) that they may quit or retire before the law fully goes into effect Jan. 1. Currently, members of Congress and their staff are covered by the Federal Employee Health Benefits Program, which provides generous benefits, including a 75 percent taxpayer subsidy of health care premiums. But an amendment to the ACA or ”Obamacare,” sponsored by Sen. Chuck Grassley, R-Iowa, requires that, beginning Jan. 1, 2014, members of Congress and their staff must purchase their health insurance through a government exchange. It is not
clear that they would continue to receive their current subsidies. Members of Congress and their staff fear costs could skyrocket if their subsidies disappear. Congressional leaders fear a “brain drain” if their staffers leave. Rep. Pete Session, R-Texas, warned, “It’s going to hinder our ability for members to take care of their families.” Rep. Tom Cole, R-Okla., said, “A lot of the staff stays on largely because of the benefit levels and particularly if you’ve got people with families… it’s just not right.” Rep. John Larson, D-Conn., complained, “Listen, this is simply not fair to these employees. They are federal employees.” We appreciate their concern for federal employees — but what about the rest of us? Since Obamacare was signed into law in 2010, private employers have been warning that it would cause confusion, market disruption and rising prices. Apparently, that reality is just now reaching the lawmakers on Capitol Hill.
DENTIST
Two medical specialty practices affiliate with Harrison HealthPartners
providing employer-sponsored coverage are so small that, faced with skyrocketing premiums, employers will drop their existing employee health plans. It’s simply cheaper to pay the fine and move those employees into state health insurance exchanges. Holtz-Eakin estimates that as many as 40 million workers could lose their employersponsored health coverage. Critics charge that these perverse incentives are designed to destabilize the private insurance market and forge a national single-payer government health care system. Regardless of intent, the impact will be severe. Brunell, page 37
Kitsap Cardiology Consultants and Kitsap Pulmonary & Sleep Medicine have announced their affiliation with Harrison HealthPartners effective July 1. Both practices said the affiliation with Harrison will help them achieve their goal of providing affordable and accessible health care to patients as the practices continue to grow. Announcements from the two practices said they will benefit from the affiliation by being able to “contract with more insurance plans, reduce healthcare costs, and make our services available to those who need us most.” The announcements also noted that little will change for patients, and that each practice’s physicians and other providers will continue to see patients at the current clinic locations. Harrison HealthPartners Cardiovascular Consultants will maintain its clinics in Bremerton, Port Orchard, Poulsbo, Port Townsend, Port Ludlow and Forks. The main office for the practice can be reached at 360-373-2547 or 888-573-2547. Harrison HealthPartners Pulmonary & Sleep Medicine will maintain its clinics in Bremerton and Poulsbo. The main office for the practice can be reached at 360-479-8022. Harrison HealthPartners (harrisonhealthpartners.org) is a multispecialty medical group owned by Harrison Medical Center.
July 2013 Kitsap Peninsula Business Journal • KPBJ.com 33
from page 25 The perseverance and stamina that sustain Heggerness probably trace back to his experiences on Mt. McKinley, where years before his trek filmed for the documentary, he helped in a dramatic rescue of injured climbers in 1960 that was chronicled in Life magazine. The fourperson party rescued after a high-elevation fall included Jim Whittaker, the Seattle native who three years later became the first American to reach Mt. Everest's summit. Heggerness' 1974 trek to Mt. McKinley was unique because instead of being flown by bush plane to the 9,000-foot base camp, the group he led traveled to McKinley by dogsled, then traversed the mountain — climbing up one side and descending another. But on that trip it was Heggerness who needed rescuing. According to a 1981article about him in a dental magazine, the descent got dicey when a storm trapped his group at 18,000 feet for three days and he became dangerously ill. He wound up being carried down 3,000 feet and airlifted to a hospital. The film of that expedition was edited into the Emmy-winning three-part documentary that first aired on KOMOTV's "Explorations Northwest" program. His days of climbing Mt. Rainier — the inveterate practical joker did it once wearing a gorilla suit — are in the past, but that doesn't mean he won't get back up there somehow. The dental magazine profile of Heggerness three decades ago noted he opposed environmental regulations that would restrict public access to outdoor places he’s long loved to explore. His quote at the end of that article was: "I don't want these areas closed off because when I'm 80 years old and unable to climb Mt. Rainier, I still want to be able to drive up to the mountain on a bus and enjoy it.”
Republican and Democratic congressional leaders are scrambling to find a “fix” to protect their staffers. Hopefully, in that process, they will fix it for the rest of us. Most insurers are predicting big premium increases under Obamacare, a stark contrast to the president’s promise that the law would actually reduce health insurance costs. For example, the Ohio Department of Insurance recently predicted that premiums in that state will rise by 88 percent under Obamacare. Another unknown is how many Americans will receive premium subsidies and how much those subsidies will cost taxpayers. As many as 26 million Americans may be eligible for subsidies next year. The law provides subsidies to individuals with annual incomes of $45,000 and up to $94,200 for a family of four. But some families may lose their coverage entirely. Douglas Holtz-Eakin, former director of the Congressional Budget Office, notes that the penalties in Obamacare for not
Hyundai Santa Fe Limited: An affordable luxury SUV
34 • Kitsap Peninsula Business Journal • KPBJ.com July 2013
By Bruce Caldwell The name is the same, but the 2013 Hyundai Santa Fe is all new. The 2013 Hyundai Santa Fe is the third iteration of the company’s hugely successful mid-size crossover SUV. There are actually two Santa Fe models, which is a little confusing. We drove the “big” Santa Fe Limited, which has three rows of seating and is powered by a 3.3-liter V6. The four-cylinder-powered Santa Fe Sport is 8.5-inches shorter, so it only accommodates two rows of seats. The Sport rides on a wheelbase that’s 3.9-inches shorter and total passenger space is almost 40 cubic feet less. To further confuse things, the former three-row Hyundai SUV, the Veracruz, was dropped. That makes the “big” Santa Fe the sole choice for buyers needing room for more than five people. Walkaround: The new Santa Fe Ltd is a handsome vehicle with contemporary styling that easily blends in with its competitors in this crowded segment. Styling is crisp with a forward thrust that accentuates motion, but isn’t likely to look outdated in a couple years. Contemporary, but slightly conservative styling is good for resale values and the Santa Fe easily meets that criteria.
The Santa Fe is available in GLS and Limited editions. Both trim levels are available in frontwheel-drive and AWD. The Santa Fe comes very well equipped and the option list is short. If you want all the goodies go for the Santa Fe Limited. We recommend the AWD option, both for safety/foul weather confidence and resale value. Interior: Hyundai designers pay serious attention to the company’s interiors. Materials, colors, and execution are all excellent. When you first open the door you sense refinement and quality, not cost saving measures. The Santa Fe can be configured for either seven or six passengers. The entry level GLS has a bench second row seat
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making room for seven. The top-of-the-line Limited has second row heated, perforated leather captain’s chairs for a total capacity of six people. The second row seat tracks are adjustable, which makes the third row reasonably adult-friendly. The captain’s chairs also make third row access easier. Front seat room is excellent. The multiadjustable seat and steering wheel make it possible for almost anyone to find an ideal driving position. Our test Santa Fe had the optional $2,900 Technology Package, which includes a massive Panoramic Sunroof, a navigation system with an 8-inch touch screen, an Infinity Logic sound system, and a heated steering wheel. The navigation system is one of the best we’ve seen. It has a huge list of features including the ability to quickly zero in on a location by finding the nearest major intersection. The Panoramic Sunroof has a power shade, but we left it open most of the time since it makes the interior so much brighter and airy. The sunroof didn’t compromise headroom. The spacious cargo area was easily accessed via a power liftgate. The split third row seats quickly and easily fold flat. The second row captain’s chairs fold, but they aren’t totally flat to the rear cargo floor. The GLS bench seat is better for lots of large cargo carrying. Additional small item interior spaces are very good. There is hidden storage underneath the rear cargo deck. Under The Hood: The sole engine for the Santa Fe Ltd is a 3.3-liter V6 that’s rated at 290 horsepower and 252 lb-ft of torque. The transmission is a smooth, efficient 6speed automatic with Active On-Demand AWD. There is an AWD lock feature for demanding off-road conditions. The engine and transmission do an adequate job of
moving the two-ton SUV. Towing capacity is rated at 5,000 pounds. While most Santa Fe owners will stay on paved roads the vehicle is quite capable of handling rugged terrain. We tested the Santa Fe on a badly rutted, very muddy offroad course and it never faltered. The Santa Fe has both hill-decent control and hillassent control, which greatly enhance driver confidence on steep hills. The EPA rates the Santa Fe Limited at 18-mpg city and 24-mpg highway. We saw over 25-mpg on sustained highway trips and our average for a 300-mile week of mostly highway driving was 23.7-mpg. That’s impressive for such a spacious SUV. Behind The Wheel: The 2013 Hyundai Santa Fe drives like a smaller vehicle than it is. In other words, it drives more like a car than a truck. It isn’t sports car nimble, but it isn’t ponderous, either. A unique feature is its adjustable electric power steering. Hyundai calls it Driver Selectable Steering Modes and it offers comfort, normal, and sport modes. It’s a neat idea and should quell complaints some drivers have about electric power steering. We thought the differences were subtle and left the selector on normal. Whines: The bottom cushions of the third row seats are pretty close to the floor, which necessitates a knees-up posture, but that’s common for mid-size SUVs. Hyundai’s success has resulted in higher prices, but the Santa Fe is still a strong value. Bottom Line: The 2013 Hyundai Santa Fe Limited is a very well balanced, multipurpose crossover SUV. It isn’t flashy or macho, but it’s highly competent on and off road. It excels as a luxurious urban people/cargo mover that delivers both good fuel economy and power at an attractive price.
2014 Kia Forte: All-new, bigger and better compact The windshield and A-pillars offer a sporty rake flowing into the roofline. Door handles and mirrors are body-colored, while chrome beltline trim emphasizes Forte’s strong, cab-forward profile. The extreme rear window rake and high deck height give the Forte distinctly European rear styling. Taillights, utilizing 81 LEDs, contribute an asymmetrical shape complimenting the underbumper diffuser. The trunk opening is two inches wider than previously for easier access. The aggressively patterned 16-inch alloys fill the wheel wells nicely, while underbody tweaks have helped the Forte achieve a slippery 0.27 drag coefficient. Interior: The challenge for designers in this segment is interior ambiance. While buyers openly accept smaller dimensions, living with tacky interior details for the life of their car just doesn’t cut it for a lot of people. Kia designers “get” this, and have succeeded in providing a more upscale experience at a lower price point than the competition. Most of the essential items — power windows and door locks, steering wheel mounted audio controls, backup camera, air conditioning, Bluetooth, satellite radio, power, USB, and auxiliary audio ports, tilttelescopic wheel, and Kia’s comprehensive safety equipment are standard on all models. Yet the options list offers upscale items not usually found this segment — ventilated driver’s seat, leather upholstery, dual-zone climate control, and puddle lamps at the door handles for example. Our Forte EX test car featured the optional leather seats that provided surprising comfort and support. The dash surface features a ripple effect on the passenger side that’s carried into the door panels while the clean and uncluttered center console — angled 10-degrees toward the driver for a more-intimate interface — features seams and contours designed to visually interrupt any monotonous surface expanse. Much of the molded surface is coated in a nano paint treatment, that’s slightly rubbery to the touch. Instrumentation is large, bright, and easy to read at a glance. The steering wheel is a three-spoke design with contrasting colors, and leather wrapped in the EX model. Under The Hood: The base Forte LX sedan comes with the 1.8-liter four-banger, with variable inlet-valve timing that puts 148-horses to the highway, and a manual six-speed gearbox (an automatic is optional). Stepping up to the Forte EX sedan or 5door gets you the 2.0-liter, direct-injected powerplant that puts 173 ponies to the pavement, coupled to a smooth 6-speed automatic. The turbocharged 1.6-liter engine that delivers 201 horses with 195 pound-feet of torque, is available exclusively on the Forte SX 5-door, and is offered with a choice of either the manual or automatic transmission. Behind The Wheel: Due to its longer
wheelbase, revised suspension, and increased torsional rigidity, the Kia Forte delivers a surprisingly well-isolated, and relatively quiet ride. The 6-speed automatic provides smooth shifts and quick responses, while the 2.0-liter engine offers strong acceleration. The Forte EX features Kia’s Flexsteer system, which offers Comfort, Normal and Sport levels of steering assist to alter the steering’s weighting to the preference of the driver. Whines: The electric steering — even
with Flexsteer, is a little bland for my taste. Bottom Line: The 2014 Kia Forte is an attractive, competent, comfortable, roomy and well-equipped compact sedan aimed at buyers who want a composed and dependable car. Arduous noise and vibration-reducing measures, coupled with careful suspension upgrades, and the best warranty on the planet, deliver more refinement and elegance than one might expect from a car as affordable as the Forte — at a price thousands below the Toyota Corolla and Honda Civic.
July 2013 Kitsap Peninsula Business Journal • KPBJ.com 35
By Lary Coppola As the compact car segment has expanded to the point of dominating the U.S. market, manufacturers are increasingly reconfiguring their offerings to deliver levels of style, luxury, safety and technology unimagined in this segment. Kia is no exception, which is why its 2014 Forte was totally redesigned, and not just refreshed. Originally launched as a four-door sedan, a 5-Door hatchback will join the lineup very shortly (anticipated debut is late summer). Since the original Forte was introduced just three and half years ago, the size of many vehicles — and their environmental impact — have shrunk, while customers needs and expectations in terms of elevated equipment levels, technology, sophistication, and elegance, have all expanded. That explains Kia’s accelerated development cycle for the Forte. Model Lineup: The 2014 Kia Forte is available as a four-door sedan and a 5-Door hatchback. No two-door couple is offered as in previous years. The Forte LX sedan ($16,000) features a 1.8-liter engine married to a standard with a 6-speed manual transmission (automatic is optional), 15-inch steel wheels, satellite radio, Bluetooth, steering-wheel mounted audio controls, trip computer, air conditioning, power windows and locks. The Forte EX ($18,000) comes with a direct-injected 2.0-liter four-cylinder — as does the 5-door. A 6-speed automatic transmission is standard, as are 16-inch alloy wheels, body color mirrors with integrated turn signal indicators, fog — and LED positioning lights, six-speaker stereo, UVO telematics package, rear camera display, cruise control with wheel-mounted controls, keyless entry and Flexsteer variable steering assist. The Forte SX 5-door features a turbocharged 1.6-liter engine rated at 201 horsepower, and is offered with a choice of 6-speed manual or 6-speed automatic with paddle shifters. An optional Premium Package includes heated front and rear seats, 10-way power adjustable driver’s seat with air-cooled ventilation, leather seat trim, power sunroof, 17-inch alloy wheels and push button start with Smart Key and a heated steering wheel. The Technology Package adds HID headlights, LED tail lights, a 4.2inch color LCD cluster screen and dualzone automatic temperature control with rear seat ventilation. Our test vehicle was a Forte EX sedan, and this review will focus primarily on that vehicle. Walkaround: Sitting on a wheelbase two inches longer than the previous vehicle, the 2014 Kia Forte features a design that looks almost European and Japanese at the same time. The front end has a wing-like bumper shape sitting between the distinctive Kia grille and under bumper air intake, which shares the grille’s distinctive mesh pattern. Headlamp enclosures are smoothly flared into the bodywork, showcasing low-beam projector lamps on all models.
Publisher Lary Coppola Editor Tim Kelly Advertising Sales Dee Coppola Pre-Press Operations 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 Press Releases
36 • Kitsap Peninsula Business Journal • KPBJ.com July 2013
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Three steps to help homebuilding and real estate By U.S. Rep. Derek Kilmer As someone who worked in economic development for a decade, I know the importance of homebuilding and real estate. Both industries were hit hard in our economic collapse and their recovery should be a key part of our overall economic recovery strategy. There’s some hope that we’re starting to turn the corner. In March, home ownership hit a 17year low, but year-to-year home prices saw the biggest gain in seven years. And the National Association of Realtors says prices are up in 133 of 150 metro areas. However, even with those positive signs, there’s a lot of work to do. Among other things, let me mention three things our country needs to do to get the economy — and specifically the real estate and homebuilding industries — back on track. First, and most importantly to our overall economy, Congress should stop sequestration and pass a budget. I use a technical term to describe these cuts resulting from sequestration — they are dumb. When your business or your home budget is facing financial difficulty, you wouldn’t cut across-the-board. You would prioritize spending and find areas where you can spend less. The cuts under sequestration are not just non-strategic, they are anti-strategic. What’s worse, with sequestration and Congress’ inability to pass a budget, we haven’t just faced a fiscal cliff — we’re facing a fiscal mountain range. There’s no long-term plan in place for our national budget. It’s fissuring trust and predictability
— something local businesses desperately need. Here’s an example: I recently held a roundtable discussion with 10 Realtors in the area. Of the 10, three of them told me they’ve recently had closings fall through due to concerns about furloughs resulting from sequestration. This should be Congress’ top priority. In fact, I recently voted for a bill — a bill that a lot of folks in my party voted against — called “No Budget, No Pay.” It said, quite simply, that if Congress doesn’t pass a budget, then members of Congress shouldn’t get paid. Never in my professional career have I held a job where I continued to get paid if I didn’t do my job. We need to end the uncertainty caused by dysfunction in Congress and pass a budget. Second, tax reform is rightly becoming an important piece of the dialogue about how to balance our budget and make our economy more competitive. There are many loopholes that need to be erased from our system, and I know that with sensible reform we can make our system smarter while protecting the middle class and small businesses. But Congress must be strategic about changes to tax policy and be careful not to throw the baby out with the bath water. For example, Congress should extend provisions that ensure property owners going through foreclosure, short sales, or loan modifications won’t pay income tax on forgiven loan debt. Also we need to protect the mortgage interest deduction because it is an effective tool for home ownership. And there is value in the Low Income Housing Tax Credit in order to support the continued production and rehabilitation of affordable rental housing. Finally, we need to bolster real estate
lending and address the credit crisis. The time of approving loans to anyone who could fog a mirror is over, but we can’t ratchet things down so much that responsible people can’t qualify. Access to capital is fundamental — for businesses seeking to invest in equipment or expand, and to homebuyers seeking to buy a home. That means the rules that regulate our financial institutions must be sound. The truth is if we want to get the housing industry and our economy back on track we need an environment that fosters trust and predictability and improves access to capital. There are plenty of other steps as well — everything from reforms to the appraisal process to efforts to identify more buildable lands. As a starting point, that means folks in Congress need to stop defining success as making the other party look bad. There are some glimmers of hope on the horizon that this will change. Every Wednesday morning I attend a meeting called the “Bipartisan Working Breakfast Group” where about 20 members of Congress from both sides of the aisle check their snarky talking points at the door and talk about what we can work on to actually create progress for the people we represent. Now, it’s only 20 people right now. I wish it was 200. But it’s a start. And it’s important because both parties must work together to pass a bipartisan budget that addresses our long-term fiscal sustainability and ends this era of uncertainty. It’s time to stop the focus on partisanship and start focusing on progress. • Derek Kilmer is the U.S. Representative from the 6th Congressional District in Washington, which includes the Kitsap and Olympic peninsulas and most of Tacoma.
In the game, potentially on a global scale Switzerland, Germany, France and Italy, all of which had already expressed an interest in exploring new opportunities in the greater Seattle region. These companies now know what Kitsap has to offer — and the strategic and competitive role Kitsap plays in the Central Puget Sound economy. (See more on KEDA’ s PAS activity on our Facebook page.) Both regional and global aerospace leaders now know about the competitive advantages of doing business in Kitsap. Within the globally recognized Seattle regional market, Kitsap has a highly skilled workforce; proximity and excellent access to the spine of our regional economy (I-5 corridor); complex, reliable industrial supply chain; a legacy of leadership in the defense industry; and, an unsurpassed quality of life within a renowned regional economy. As recent headline-making comments by Airbus chairman Allen McArtor emphasize, these advantages are what attract companies to the Puget Sound market. When talking about his interest in Washington state, McArtor said, “That is where the talent is.” The industry leaders we met in Paris now know that with the highest concentration of engineering talent and educational attainment in the region, Kitsap is where the talent is! In addition to building relationships with current and prospective business clients, our three-person KADA delegation forged stronger working relationships with other leaders in the industry and with our strategic partners at the Washington State Department of Commerce and the Governor’s Office of Aerospace. I want to particularly thank Alex Pietsch, director of the Governor’s Office of Aerospace, for the significant time he spent with us in meeting with certain key prospects; and to Congressman Rick Larson for stepping in on short notice to lead the Washington delegation when Gov. Jay Inslee needed to stay in Olympia and guide protracted budget negotiations. Both of these gentlemen did an outstanding job in teaming with our KADA delegation to tell and sell the Kitsap Story . . . to make the pitch in Paris. It’s early in the game and too soon to predict the precise results of our efforts – but one thing is crystal clear, we are now in the game.
BRUNELL
subsidies after Jan. 1. That decision, expected in the next few months, may “fix” things for the folks who work on Capitol Hill. But what about the rest of us? • Don Brunell is president of the Association of Washington Business. Formed in 1904, the 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.
from page 33 Some of the same labor unions that enthusiastically supported Obamacare are now having second thoughts. They’re concerned that the incentives to push employees into state exchanges will undermine union contracts. Historically, high-quality health benefits have been one of the biggest enticements labor unions have to attract and retain members. If workers are shunted into the state exchanges, that benefit disappears. In Washington, D. C., congressional leaders are waiting for the Office of Personnel Management to decide whether members of Congress and their staffers will continue to receive their taxpayer-funded
• John Powers is executive director of the Kitsap Economic Development Alliance.
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By John Powers Kitsap Economic Development Alliance The third week of June was a good week for Kitsap and local efforts to participate in our region’s rapidly expanding aerospace industry. The Kitsap Aerospace and Defense Alliance (KADA) made its pitch at the 50th International Paris Air Show in Le Bourget, France. Kitsap County Commissioner Josh Brown, Port of Bremerton CEO Tim Thomson and I joined a Washington State Department of Commerce delegation of 52 business leaders, government officials and economic developers with a clear mission to promote Washington’s leadership in this highly competitive global industry. This premier trade show also afforded delegates an opportunity to tell and sell their respective companies’ or communities’ story to a large and experienced audience of industry decision makers from around the world. Our KADA delegation, in concert with the Department of Commerce and the Governor’s Office of Aerospace, conducted several meetings with companies already operating in our region, and many who are exploring new opportunities in aerospace, both commercial and defense, in our market — companies that invest in and create goodpaying jobs in the communities where they operate. We met with senior representatives of several multinational defense firms who already have a significant presence in Kitsap – companies such as Northrop Grumman, Raytheon and Lockheed Martin. Our message to these companies sounded a business retention and expansion theme: “We are grateful for your enterprise operations in our community, we are committed to helping you succeed here; and, we are interested in examining opportunities for your company to expand and potentially diversify your business lines in our market.” We also met with several companies heretofore not familiar with Kitsap County and the many assets it has to offer the aerospace and defense companies. Specifically we met with companies from
Politics, wizards, vetos, and other weird stuff Harry Potter is one of my grandson Bryce’s heroes — along with Babe Ruth, Peyton Manning, Cristiano Ronaldo, and Ken Griffey Jr. — who he got to see hit his last major league home run. If it were possible to wave a wand like Harry and make good things happen, Bryce would be first in line. If you’re a kid, you know wizards can do some pretty awesome stuff — like make people invisible. However, if you’re a grown up, you’re supposed to know better. That’s why I’m not sure whether to file this in our infamous “Truth is Stranger Than Fiction, Because Fiction has to Make Sense” file, or just submit it to those folks who pass out the Darwin Awards — the public recognition earned by those morons who have mercifully diluted the gene pool by losing their lives doing incredibly stupid things. Most of us were taught as children not to trust strangers. So, when a “wizard” says that for $500 you can be invisible and rob banks, he’s probably not too trustworthy. As an adult, you’re supposed to already know this. However, this Darwin candidate forked over the cash, walked into a bank, and because he was “invisible,” randomly started grabbing money out of customer’s hands. The people in the bank quickly overpowered and subdued this Malfoy wannabe. In court, he allegedly told the judge, “I made a mistake. I understand now what a big trick was played on me.” Ya think? The “victim” hasn’t been named, but his photo has been all over the Internet. He sort of looks like former Mariner pitching
ace Randy Johnson on crack. • • • Ever wonder why US credit card technology is substandard compared with Europe and Asia? The answer, cheap phone calls. Because calls here are cheap, credit card transactions are called in for authorization. In Europe, where state-owned LARY COPPOLA monopolies charge a fortune The Last Word for each call, the work-around was embedding microchips in credit cards. Meanwhile, as we catch up, mobile phone payment technology will eventually make credit cards largely obsolete. • • • In light of the NSA eavesdropping scandal, it’s been reported that Verizon has updated its slogan to… “We can hear you now.” • • • In a stunning ruling, the Supreme Court struck down an Arizona law requiring voters to present proof of U.S. citizenship to register to vote in state and national elections. The court ruled that federal law “precludes Arizona from requiring a federal form applicant to submit information beyond that required by the form itself,” Justice Anton Scalia wrote. In a 7-2 decision, with Justices Clarence Thomas and Samuel Alito dissenting, Thomas wrote, “The Constitution
authorizes states to determine the qualifications of voters in federal elections, which necessarily includes the related power to determine whether those qualifications are satisfied.” Providing proof of citizenship to vote is no more burdensome than presenting a birth certificate or other official identification to get a driver’s license, a passport, get on an airplane, or apply for college. Am I the only one who finds it hypocritical that Democrats imply their constituents are too incompetent to provide proper identification to vote in national elections — but smart enough to actually elect their representatives in Washington, D.C.? What’s really going to be interesting is how Democrats who argue that requiring proof of citizenship is a needless burden on their “vulnerable” constituents, will be able to maintain that deceit when Obamacare documentation requirements are added to IRS reporting next year. Is that not a burden on “vulnerable” constituencies? And what about the maze of tax requirements and regulations that Washington, D.C. and Olympia have piled on small business over the years? Don’t they make we who run businesses a “vulnerable” constituency as well? The bottom line is that this ruling clears the way for millions of illegal aliens to vote without empowering states to prevent it, and ignores the clear dictates of the Constitution. What’s wrong with this picture? • • • A former Microsoft executive is reportedly looking for investors for a major
marijuana startup business. He says he wants it to become the “Starbucks of pot.” And you think you’re paying a lot for weed now… • • • Gov. Jay Inslee’s recent veto of ESHB 1652 demonstrated both his allegiance to the special interests that helped finance his election (read: teachers’ union), and exposed his own hypocrisy as well. The bill would have deferred the payment of impact fees on construction until closing, instead of at the time of permitting as the law currently dictates. The bill enjoyed wide bipartisan support, passing the House with 73 votes, the senate with 34, and back to the House with 83 votes in concurrence. It was a good bill that would have been an immense help to small and moderate-size homebuilders and their suppliers, by easing the cash outlay required to begin construction. Local impact fees — which cover schools, roads, parks, etc. — vary, averaging around $2,500 per house, but are much higher in other parts of the state. School districts have 10 years to spend impact fee money, so the time between permitting and payment is negligible to them, but critically important to small builders. Inslee stated all through his election campaign he would do whatever was necessary to help small business and spur the construction industry because it’s such a huge contributor to our state’s economy. Yet when he had the chance, he caved in to the greedy teachers union. Pathetic…
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Sifting through ‘scandals,’ spotting some grandstanders Interesting, isn’t it, how some “scandals” keep the public and/or media riveted for days or weeks, while others are soon eclipsed when a more tantalizing story grabs our fickle attention, or maybe because a breathlessly hyped “scandal” proves to be bogus. During a recent conversation over coffee, I mentioned that the NSA sure had taken the heat off the Internal Revenue Service. My observation prompted some disgruntled muttering from someone else at the table, who seemed miffed, as if he’d been cheated of the full measure of satisfaction the IRS “scandal” once seemed to promise. Much to the chagrin of folks like the fellow in my coffee chat who so wanted to revel in outrage, that IRS “scandal” turned out to be a tempest in a tea party pot. The NSA scandal — whether you think the scandalous element is the leak or the government’s vast surveillance of Americans that the leak exposed — will sustain buzz for awhile. Especially as long as the CIA is playing “Where’s Waldo?” in trying to find the leaker, Edward Snowden. If not for that intrigue — along with occurrences like devastating tornadoes, a
freeway bridge collapse, our state Legislature’s inability to pass a budget, a young NFL star being charged with murder, and the odd choice of name for the Kanye West/Kim Kardashian offspring — the biggest story at the start of summer might have been the murder trial of George Zimmerman in Florida. TIM KELLY That trial, even though it Editor’s View may last longer than baseball season, will certainly command its share of coverage. And if Trayvon Martin’s killer walks, we’re likely to see some real outrage erupt in Florida. Then last week the U.S. Supreme Court grabbed the spotlight with its rulings in two cases involving same-sex marriage. The court’s 5-4 decision that the federal Defense of Marriage Act (DOMA) is unconstitutional is a historic ruling that’s been celebrated by gay and straight people who believe in equality. The court’s ruling evoked predictable
wailing and gnashing of teeth among religious conservatives and the “family values” crowd, many of whom still can’t abide the will of the people expressed in last year’s vote approving marriage equality here in Washington. Even with the dismissal of DOMA and a second ruling that essentially nixes the Proposition 8 gay-marriage ban in California, the Supreme Court did not establish equal marriage rights for same-sex couples as the law of the land. Dozens of states still have bans like California’s, but it will be tougher now for such discriminatory laws to withstand legal challenges that surely will follow last week’s court rulings. Not to mention the tide of public opinion that’s steadily turning toward acceptance of same-sex marriage. There’s also a related controversial case in our corner of the country that’s yet to be settled and may soon vie for more headlines (and stir more phony outrage) whenever it goes to court. It involves an Eastern Washington florist who faces an antidiscrimination lawsuit for refusing to provide flowers for a gay couple’s wedding. This is one of those controversies that
shouldn’t have been. State Attorney General Bob Ferguson, who’s proving to be a grandstander, filed the lawsuit even though the gay couple never contacted his office. He became aware of the incident with the florist from Facebook comments the couple posted. The couple later filed their own ACLUaided lawsuit against the florist. She then filed a counter lawsuit against Ferguson claiming her religious freedom is being threatened. She’s abetted in her cause by another major grandstander, Family Policy Institute of Washington director Joseph Backholm, ever one to distort facts to suit his anti-gay agenda. This whole circus could have been avoided. I think the florist may be a goodhearted woman, but I also think she violated state anti-discrimination law. If she would have sold the flowers to the gay couple and not worried about how they’d be used, no lawsuits would be pending. Ditto if Ferguson would have resisted the urge to butt in, and likewise if the disappointed gay couple had simply gone to another florist to get their flowers. Grandstanders, be gone.
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