July / August Chalk Line

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JULY / AUGUST 2013

INSIDE THIS ISSUE From the President..................... 2 From the EO............................... 3 Class Schedule for Fall................. 5

OMB Members Give Blood, Get ROII Checks The Olympia Master Builder’s (OMB) Fifth Annual ROII BBQ and Blood Drive exceeded their goal with a total of 19 donors, nine being first-time donors, for the Puget Sound Blood Center. OMB members also donated food for the Thurston

Another Member Benefit............ 6

2013 Annual Golf Tournament

OMB members Laura Huyck of B & R Flooring America and John Erwin of John Erwin Remodeling, Inc. generously donate blood.

Winners

County Food Bank as a way of giving back to the community. Many OMB members stopped by to give, get a hotdog hot off the grill, network, and pick up their ROII rebate check. The ROII BBQ and Blood Drive was sponsored by John Erwin Remodeling, Inc. and

John McKinlay of Olympia Overhead Doors stopped by for a hotdog and his ROII check.

See “Goal”

page 9

September GMM

see page 10

Coming in August

Candidates Night

Five Counties Strong

Serving

Thurston, Lewis, Grays Harbor, Pacific & Mason Counties

BUILDING STRONG COMMUNITIES ONE HOME AT A TIME. 1211 State Avenue NE Olympia, WA 98506 360-754-0912 800-456-6473 www.omb.org

Make plans now to visit the 2013 Tour of Homes™! The Tour will take place on August 17, 18, 24 & 25, and the homes will be open from 11:00 a.m.to 5:00 p.m. each day. This Tour features both new homes and remodel projects. A new element this year is educational sites, showcasing products and services related to residential construction and home ownership. Details about all of the Tour stops will be published in The Olympian on Thursday, August 15. Many thanks to the 2013 Tour of Homes™ sponsors Olympia Federal Savings, Mixx 96.1 FM KXXO and The Olympian!

The September 10 General Membership meeting will feature local candidates running for several different positions and will provide a great opportunity for Olympia Master Builders members to visit with the candidates. The meeting will be held at Indian Summer Golf and Country Club, 5900 Troon Lane SE, Olympia, WA 98501 with social hour starting at 6:00 p.m. The cost for dinner is $25 with a reservation and $30 without. Call 360-754-0912 to make your reservation.


From the President

Presidential Insights By John McKinlay President

One of the biggest perks of being your Olympia Master Builders (OMB) President this year has been getting involved on a deeper level in all aspects of the Association. This involvement has come with an in-depth knowledge of the different issues in our government affairs arena. As your President, I have testified in front of Councils and Commissioners regarding several different

issues over the last seven months. Exercising the right to get involved with the public process is an experience I think everyone should take part in; I definitely have found it to be empowering.

property owners have heavily participated in the public process on this issue. The latest version, though it still has several things we would like to see changed, is much improved from where things stood when it came out of the Planning Commission.

The most recent government affairs issue that OMB has testified on is the City of Olympia’s Shoreline Master Program (SMP). I spent the evening of July 9, along with other OMB members, citizens and OMB’s Government Affairs Director Angela White, testifying on the latest of many versions of this document.

It was gratifying to be there thanking the City Council for the hard work that they had done in improving the SMP and making it a much more balanced document. I was proud because we, OMB, had a hand in encouraging the City to make those changes.

Over the last few years, OMB, and other community members and

I am sure many of you received the postcard that went out from the local activist group, Friends of the Waterfront prior to the Shoreline Master Program public hearing. They made quite an unimpressive splash throughout the community. To quote The Olympian’s Editorial about the postcard titled, Scare tactics on shoreline plan unethical, inaccurate published July 3, 2013, “The Friends of the Waterfront, however, resorted to the lowest form of democratic participation:

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the negative campaign smear piece. The mailer uses Halloween-horror style typography and screaming headlines designed to create fear and manipulate people’s emotions. It also includes inaccurate information.” This postcard and the reaction after the fact got me thinking of how proud I am of how OMB conducts itself. As an organization, we make it a priority to provide factual information on issues affecting the industry whenever we decide to take on an issue. When necessary, we hire scientific and/or legal experts to make sure we are providing truthful, helpful information. On the Olympia SMP, we’ve made a difference and we’ve done it by being part of the solution, not part of the problem! As your 2013 OMB President, I encourage you to get involved in the Association and the government affairs issues that affect our industry. There is strength in numbers and we can effect change.

July / August 2013


From the Executive Officer

Housing FINALLY Starting to Rebound By Laura Worf Executive Officer

I don’t know about you, but when I saw the graph that we’ve included on this page, I wanted to shout out “finally”! I joined Olympia Master Builders (OMB) in January 2007 and, as you can see from the graph, since then there’s not been a lot to celebrate in the home building industry. But that is all changing, because the housing industry is starting to rebound. Below is information I received in July from several different publications from the National Association of Home Builders: • Builder confidence in the market for newly built, single-family homes rose six points to 57 on the National Association of Homes Builders/Wells Fargo Housing Marketing Index for July 2013. This is the index’s third consecutive monthly gain and its strongest reading since January of 2006. • “Builders are seeing more motivated buyers coming through their doors as the inventory of existing homes for sale continues to tighten,” noted NAHB Chief Economist David Crowe. • Total private residential construction spending increased to a seasonally adjusted annual rate of $328.6 billion in May 2013, the fastest pace of residential construction since October 2008. • Spending on new single-family homes increased to an annual rate of $166.3 billion, a rate unseen since August 2008. On a year-over-year basis, new single–family construction spending increased 33.2%.

July / August 2013

• The inventory of new homes for sale edged up to 161,000 from 157,000 in April, but this level of inventory is still historically low and represents roughly one-third of all units sold, well below the more normal inventory level of half of units sold. • U.S. home prices rose by 0.7% on a month-over month seasonally adjusted basis in April. This is the 15th consecutive monthly increase, with prices up to 9.9% since January 2012. • A total of 255 metropolitan areas across 49 states and the District of Columbia qualified to be listed on the National Association of Home Builders/First American Improving Markets Index (IMI) for July. The IMI identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecutive months. Six new markets were added to the list including Olympia, Washington.

ing those located in almost every state – remain solidly on the path to recovery even as the pace of their improvement is slowed by ongoing challenges related to the availability of credit, labor, lots and certain building materials,” stated NAHB Chief Economist David Crowe. “Based on recent trends in home prices, housing permits and employment, the outlook for a continued housing expansion remains very positive for the remainder of 2013.”

• “This is the sixth straight month in which at least 70 percent of all U.S. metros have qualified for the Improving Markets Index,” observed NAHB Chairman Rick Judson. “The relative stability of the IMI is representative of the broad recovery underway, which is much more extensive than what we were looking at one year ago.”

For the past 54 years, OMB has existed through housing market highs and lows providing our members and the general public with the information they need to make informed choices to better provide quality homes for our communities. As we enter what certainly looks to be a housing market recovery, OMB will continue those efforts.

Scan this code, link to www.omb.org and you’ll be up to date on OMB events, news and educational information.

• “Despite slight ups and downs in recent IMI levels, an overwhelming majority of U.S. metros – includ3

Olympia Master Builders / Chalk Line


Government Affairs Report - The Latest Highlights Olympia Master Builders (OMB) is currently working on and/or monitoring several issues related to the building industry. Visit www.omb.org to see a list of issues. Below are a few recent highlights which include links to further information. To easily access these links go to the online version of Chalk Line at www.omb.org/news.

City of Olympia Mandating Residential Fire Sprinklers

Mazama Pocket Gopher-Thurston County

The Olympia City Council voted to mandate residential fire sprinklers starting in July of 2014. OMB staff testified and provided Council members information against mandating residential fire sprinklers.

OMB is participating with a Coalition made up of public and private participants to deal with the potential federal listing of the Mazama pocket gopher. Public comment was accepted until February 11th. OMB submitted comments as part of the Coalition. OMB staff testified at the United States Fish and Wildlife public hearing on April 18.

City of Olympia Shoreline Master Program Mason County Shoreline Master Program

The Olympia City Council released another draft of the SMP on May 28, 2013. The Council held a public hearing on July 9th. OMB members and staff testified and submitted comment and will continue to engage in the process

Mason County is in the process of updating their Shoreline Master Program (SMP). The City arranged a Citizen’s Advisory Committee to help review and evaluate the SMP. OMB member Paul Muldoon, was appointed and served on the Citizen’s Advisory Committee. The document was passed on to the Planning Commission in February, 2013. The Planning Commission is now in the process of deliberating on the document. OMB partnered with the Economic Development Council and the Thurston County Chamber of Commerce to submit comment.

City of Olympia Comprehensive Plan The latest draft of the Comp Plan is available online at: http://olympiawa. gov/imagine-olympia. The City Council will review this latest draft throughout the summer and expects to hold public meetings in the Fall. They will determine a public hearing and deliberation schedule in October.

Visit http://www.co.mason.wa.us/community_dev/shoreline_master_program/ for additional information.

Lewis County Building Code

City of Olympia Reclaimed Water Program In 2011, City of Olympia staff attended an OMB Government Affairs Committee meeting to provide a briefing on proposed changes to the City of Olympia’s Reclaimed Water Ordinance. OMB members gave input on the proposed ordinance. The City made changes based on the input and have moved to a voluntary program supporting advances instead of requiring the Reclaimed Water elements. The Planning Commission held a public hearing on the draft ordinance on July 15.

Lewis County is in the process of a building code update. As part of the process the County met on July 17 with OMB members and staff to discuss the proposed changes.

Lewis County Shoreline Master Program Lewis County and the cities of Centralia, Chehalis, Winlock and Morton have joined together to share data, perform the analysis, and develop consistent as possible policies and regulations across the region for the Shoreline Master Program. The SMP updates are being funded by a Department of Ecology grant that will be administered through Lewis County on behalf of the cities. Scott Nolan has been asked to sit on a citizen’s advisory committee.

Thurston County Shoreline Master Program Thurston County’s Planning Commission has listed the County’s Shoreline Master Program (SMP) on their work agenda for 2013. The County took a hiatus on work on their SMP while their staff focused on the Critical Areas Ordinance which wrapped up in December of 2011. OMB will continue to monitor work on the SMP and take action when necessary.

Olympia Master Builders / Chalk Line

For more information about any of these issues, contact OMB’s Government Affairs Director, Angela White at 360-754-0912 or email Angela@omb.org.

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July / August 2013


Class Schedule for Fall

Call the Building Industry Association of Washington to register - 360-352-7800. 48 hour cancellation policy. October

September

Green Building for Building Professionals. Wednesday & Thurs- Advanced Green: Building Science. Wednesday & Thursday, Oct.

day, Sept. 11 & 12. 8:00 a.m. to 5:00 p.m. This two-day course for building 9 & 10. 8:00 a.m. to 5:00 p.m. This two-day course instructs builders and professionals discusses strategies for incorporating green-building principles into homes without driving up the cost of construction. 16 Appraiser continuing education classroom hours; 16 Real Estate clock hours; 12 AIA continuing education credits. Designations: CGA, CGB, GMR, CGP. Continuing education credit: CAPS, CGA, CGB, CGR, GMB, CSP, Master CSP, CMP, MIRM. $275 members, $330 non members.

remodelers on proper building science techniques for construction and remodeling high-performance homes. Designation: Master CGP. Continuing education credit: CAPS, CGA, CGB, CGR, GMB, CSP, Master CSP, CMP, MIRM. $300 members, $355 non members.

Construction Contracts & Law. Wednesday, Sept. 18. 8:30 a.m.

8:00 a.m. to 5:00 p.m. This NEW two-day course teaches builders and remodelers how to successfully integrate green building-related tasks and the green home certification process into their project management to creatr an effective, streamlined process. Designation: Master CGP. Continuing education credits: CAPS, CGA, CGB, CGR, GMB, CSP, Master CSP, CMP, MIRM. $295 members, $350 non members.

Advanced Green: Project Management. Wednesday & Thursday,

Oct. 23 & 24.

to 4:30 p.m. The lien law portion of the seminar teaches you how to prepare and file liens, bond claims, retainages, & notices to lenders on residential, commercial & public works projects. The construction contracts portion covers the essential terms of contracts with owners & between contractors that provide for the unexpected. 7.5 Real Estate clock hours; 3 insurance continuing education hours; 7.5 NAHB continuing education credit. Legal continuing education credit. $225 members, $280 non members.

December

Management for Building Professionals. Thursday, Forklift Safety Training. Wednesday, Sept. 25. 8:30 a.m. to Noon. Business Dec. 5. 8:00 a.m. to 5:00 p.m. This course will give you a solid foundation While OSHA & WISHA rules & regulations differ, both require training for any forklift or Powered Industrial Truck operators. Learn OSHA & WISHA rules and regulations regarding safe use. See examples of how a certain rule or regulation pertains to a given scenario. $100 members, $155 non members.

in those best business practices so valuable to smaller businesses: planning, organizing, staffing/directing and controlling. 6 NAHB continuing education credits; 6 AIA continuting education credits; Designation credit: CAPS, CGA, CGB, CGR, CGP, Master CSP, Master CGP $225 members, $280 non members.

Congratulations to these OMB Professionals who have earned Home Building Designations Gary Bailey

Gerald Bailey Constru.

CGP

Scott Bergford

Scott Homes, Inc.

CAPS, CGP

Fred Carlson

NW Design & Devel.

CAPS, CGR

David Danton

Lexar Homes

CGP

Tim Dickey

Dickey’s Inc.

CAPS, CGR, CGP

Stuart Drebick

Adroit Construction

CAPS, CGP

John Erwin

John Erwin Remodeling CAPS, CGR, CGP

Diane Gassman

Interior Dimensions

John Johnson

Johnson Custom Homes CAPS, CBG, CGP

Bob Lemier

Lemier Phillips Constru. CGP

Linda Mosier-Vaudt ProBuild David Phillips

CAPS

CAPS, CGA, CGP

Lemier Phillips Constru. CAPS, CGR, CGP

Kimberly Showalter Gemini Corp.

CSP

Steve Smith

Kenyon Remodeling

CAPS, CGP

Chris Terry

C.T. Building, Inc.

CAPS, CGA, CGP

Chris Winters

Winters Construction

CAPS

Certified Aging in Place Specialist (CAPS); Certified Green Professionals (CGP); Certified Graduate Associate (CGA); Certified New Home Sales Professional (CGP); Certified Graduate Remodeler (CGR); Graduate Master Builder (GMB); Master Certified Green Professional (Master CGP)

July / August 2013

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Olympia Master Builders / Chalk Line


National and State Update From the

On June 25, the Supreme Court issued an opinion that affects the conditions which governments try to impose on developers and builders in order to get a permit. The case is Koontz v. St. James River Water Management District, and the opinion is available at: http://www.supremecourt.gov/ opinions/12pdf/11-1447_6j37. pdf. The National Association of Home Builders (NAHB) led a coalition of 16 associations which filed an amicus brief explaining to the Court that governments must not be allowed to extort money from property owners who wish to use their land. The Supreme Court actually used the word “extortion” several times in describing how governmental entities often treat developers! In the Koontz case, a developer

From the

The Building Industry Association of Washington (BIAW) recently added another member benefit - BIAW’s Building Industry Insurance Program (BIIP). This is an exclusive member benefit which allows members the opportunity to purchase insurance products thorugh BIAW member insurance agents at competitive prices. Currently, BIAW member agents offer Builders Warranty, General

U.S. Supreme Court Rules on Permitting Issue ous conditions)? Second, can the developer sue when the government is asking him to spend money somewhere else (versus putting conditions on his own property) in order to get a permit?

owned about 15 acres of land in Florida. He sought to develop nearly 4 acres and to grant a conservation easement over the remaining 11 acres to a water management district in order to accommodate wetland concerns.

The Supreme Court said “yes” to both of these questions.

The district did not accept his offer. The district told him that he could only develop ONE acre and that he would have to grant a conservation easement over the remaining 14 acres. OR they would allow him to develop his 4 acres as originally planned if he would hire contractors to make improvements to 50 acres of government owned land several miles away.

The case deals with “exactions” which are essentially conditions that the government puts on developers, and in exchange, the government will grant a development permit. Since the late 1980s, the Supreme Court has held that exactions must have a “nexus” to a legitimate governmental purpose and must be “roughly proportionate” to the impacts of the project. This is known as the Nollan/Dolan test, named after two Supreme Court cases. But the Nollan/Dolan test had never

When the developer sued the water district, there were two unanswered questions: First, could the developer even sue since the permit was denied (versus a situation where the permit was granted with oner-

been applied to the denial of a permit or for the requirement that the developer spend extra money elsewhere to get the permit. This case sends a message to governmental entities at all levels that the conditions they place on granting of permits (or other zoning and planning), must be closely tied to the project and tied to a legitimate governmental purpose, and that the protections extended to private property owners would be broadly interpreted. This is a HUGE victory for our members and for all fans of private property rights. Spread the word and make sure you give kudos to the NAHB legal staff and Legal Action Committee. Their hard work on this cannot be overstated.

BIAW Offers Another Member Benefit Liability and Builder’s Risk insurance products. Find the product(s) you desire and contact the agent in your area. All agents and brokers are BIAW members and qualified to offer these products.

annual premiums. ISG Asset Protection Program offers comprehensive and competitive commercial general liability and innovate risk, management and loss control procedures for residential general contractors,involved in single-family, multi-family construction (fee simple or condo), mixed-use construction and small commercial projects.

Insurance Speciality Group’s (ISG) Builder’s Risk product offers broad coverage with no monthly reporting. Premium is computed based upon the time each home is in inventory, resulting in competitive

Olympia Master Builders / Chalk Line

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Professional Warranty Service Corporation offers home builders a ten-year Insured Builder Warranty Program as well as additional products, for builders who care about the details. For more information on BIIP go to the BIAW website at www.biaw. com or call BIAW Special Projects Coordinator Karen Hall at 800228-4229, ext. 137.

July / August 2013


Fall Quarter Membership Recruting Incentive

Murder Mystery Dinner Train An Agatha Christie Murder Mystery Dinner Recruit three new members July 1 through September 30 and win a trip for two onboard the Chehalis-Centralia Murder Mystery Dinner Train! “Who dun’ it? Those are the words that will be in your head as you enjoy a ride on the Chehalis-Centralia Murdery Mystery Dinner Train. Dinner will be served on board the train in the refurbished dining car while clues and entertainment are provided along the way. You will have an opportunity to be a detective and solve the crime.

The train departs on Sunday, October 27, 2013 at 4:00 p.m. from 1101 Southwest Sylvenus Street, Chehalis, WA 98532 and return at 6:00 p.m. The Olympia Master Builders (OMB) party will be encouraged to meet at a yet-to-be determined venue prior to departure (details will follow). For more information contact Tony at the OMB office 360-754-0912 or email tony@omb.org.

July / August 2013

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Olympia Master Builders / Chalk Line


Membership Report

By Tony Brooks Membership Marketing Director

As a benefit of your membership in Olympia Master Builders (OMB) you are also a member of the State Association, the Building Industry Association of Washington (BIAW) and the National Association of Home Builders (NAHB).

Three Member Benefits That Save You Money and Support Your Association At each level of membership there are savings through Group Purchasing Organizations (GPOs). There can be substantial savings by enrolling and using these programs, all of which are free with no obligation to buy, and one offers money back on products purchased.

and Remodeler members a rebate on products you most likely already buy. The program requires no receipts, issues quarterly money rebates back to participating members, and currently represents 49 top brands. There is no cost to register; just go to http://www.biaw.com/Builder_Rebate.aspx for information and click on the Member Rebate Program link to register. You are required to report your purchases once a quarter and HBA Rebates does the rest. For more information, contact Lara Hastings at 800-228-4229, ext. 171 or larah@biaw.com.

The BIAW “Member Rebate” program is a manufacturer’s loyalty rebate program that offers Builder

The NAHB “Member Advantage Program” offers substantial discounts on 16 different brands, including General Motors, Dell Computers and FedEx, to both Associate and Builder Members. This program is easy to use and all you need to do is go to www.nahb. org and log in using your NAHB username and password, mouse over “Your Membership” at the top right of your screen and click the “View Benefits and Discounts”. Once the new page appears, click on “Member Discounts” at the top of the form. Once there click on the logo of the company you wish to purchase from and follow their instructions. For more information contact Christy Ronaldson with NAHB at 800-3685242 x8273 or email her at cronaldson@nahb.org.

ing companies and the links to use this benefit go to http://www.nahb. org/fileUpload_details.aspx?conten tTypeID=3&contentID=48&subCon tentID=284631. To get a login and password go to www.nahb.org and create an account. If you do not know your NAHB PIN #, call OMB and we will help you. Last, but not least important, is OMB’s partnership with National Purchasing Partners (NPP), a GPO that holds vendor discount contracts that can be accessed by our members. Registering with NPP can save you 22% on your Verizon Wireless bill, get discounts and free shipping from Staples, and discounts for operational supplies through Fastenal; just to name a few opportunities to save. To register with NPP go to www. mynpp.com. Click “Join Now” and select “Construction” from the dropdown menu. Then select “Residential” from the Category dropdown menu and select “HBPP” from the Association dropdown menu. Last of all complete the registration form and follow their instructions. For more details you can call NPP Customer Service at 800-810-3909 or email customerservice@mynpp. com. For more information on one or all of these programs you can also contact me at OMB by calling 360754-0912 or tony@omb.org

If you would like a list of participat-

Olympia Master Builders / Chalk Line

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July / August 2013


Remodel Now Magazine Available

“Goal”

The 2013/2014 Remodel Now magazine, a publication of the Remodelers’ Council of Olympia Master Builders (OMB) was recently published. Included in this edition are articles on remodeling for accessibiity, working with a professional designer, and the 2013 Remodeling Excellence Award winners.

Continued from page 1

kicked off the Return on Industrial Insurance (ROII) check distribution.

to OMB members enrolled in this program.

Every year OMB member companies enroll in the ROII program committing to a safer work place and earning a rebate on the premiums paid into L & I.

Thank you to John Erwin Remodeling, Inc. for sponsoring this event.

The first adjustment for the 20112012 plan year is 28%. Imagine getting 28% back of the annual premiums you paid into L & I. This year OMB returned nearly $400,000

If you are interested in more information about the ROII Program or how to get enrolled contact Tony Brooks, Membership Marketing Director, at 360-754-0912 or at tony@omb.org.

This colorful, informative magazine is available free at the OMB office, 1211 State Avenue NE, Olympia, WA 98506. Stop by and pick up a supply for your business. It’s a valuable marketing tool for builders, remodelers and associate members.

BIAW is proud to announce its newest member benefit—the

quality you can see. a name you can trust.

Building Industry Insurance Program (BiiP) BIAW members now have the opportunity to purchase insurance products through BIAW member insurance agents at competitive rates. For more information, click on Building Industry Insurance under the BIAW Programs tab at BIAW.com.

Why Us? •

Products Available

z Builder’s

Risk z General Liability

z Builders Warranty

Offered by:

Offered by:

Insurance Specialty Group

Professional Warranty Service Corporation

• •

The largest selection of garage doors and openers to choose from in the area We repair and service all makes and models Free estimates & on-site consultations!

LOCAL LOGO GOES HERE

Questions?

Contact BIAW Special Projects Coordinator Karen Hall at 800-228-4229, ext. 137. BIAW is not a licensed insurance broker or agent. In referring the user to an insurance company or licensed agent, BIAW is not selling insurance or providing coverage advice or counsel relative to coverage. BIAW does not solicit, take, or process insurance applications, nor does it negotiate or execute insurance contracts. For policy questions, or to obtain insurance, please contact a licensed member agent or broker. BIAW is paid an advertising fee by the participating insurers.

(360) 491-8003 www.olydoors.com OLYMPOD933MJ

July / August 2013

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Olympia Master Builders / Chalk Line


OMB Golf Tournament Winners First Place

Second Place

Lewis County Team

H.B. Jaeger Team

From left: Jim Collyer, Jared Stewart, Michael Stozyk and Matt Gagnon.

From left: Mike Murdock, Marcus Williams, Gary Gutteridge and Mike Jaeger.

Third Place

First American Title Team

The 34th Annual Olympia Master Builders (OMB) Golf Tournament was held on Thursday, June 13 at The Golf Club at Hawks’ Prairie. Over 120 golfers enjoyed the Beach Party themed event. Thank you to the following sponsors for making this event possible: Bron’s Automotive, Chicago Title Insurance Co., Desco Audio & Video, Edward Jones Investments, EPK Benefits, FASTSIGNS, Frost & Company, PS, Hung Right Doors, LLC., LiftMaster, Olympia Federal Savings, Olympia Overhead Doors, Parr Lumber Company, Pro-Build, Sierra Pacific Windows, Serling Bank, Sunset Air, Inc., Thurston County Chamber of Commerce, Timberland Bank, Washington Business Bank, Westar Pacific Mortgage, and 96.9 KAYO & AM 1240 KGY.

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July / August 2013


Big Builders Take Share Top 100 builders nab 50 percent of the new-home closings in 2012

By Jonathan Smoke, Builder Magazine

for 50 percent of all new home closings in 2012, up from 45 percent in 2011.

Scale has advantages in most industries, leading to domination by larger firms over the long term. Historically, because of the very localized nature of housing, scale has had its limits in home building. But because of the structural issues the industry has faced during the past six-plus years and the changing market context, big builders gained competitive advantages over smaller firms – and the end result is a more concentrated landscape.

Publicly traded builders captured 28 percent of all new home closings (constructed homes sold with land and documented with a deed of sale), up from 26 percent in 2011.

The biggest 200 builders gained share in 2012. Overall, the nation’s top 100 builders were responsible

July / August 2013

with land developers. Smaller builders will need to focus on agility and nimbleness – traits that are tough to

exhibit through scale – to compete with bigger firms.

The 10 largest builders saw similar growth, closing 27 percent of all new homes last year, up from 24 percent in 2011. We expect this trend to continue in 2013, providing advantages to the larger builders such as increase access to capital, leverage over suppliers, better financing options for buyers, and more bargaining power

The top 200 largest home builders all gained share as a percentage of all new homes closed in 2012 and at a greater pace than in recent years.

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Welcome New Members A Fab World Charity Matt Grate 6503 A Delphi Rd. SW Olympia, WA 98512 Phn: 360-754-2868 AFABWorld@gmail.com Sponsor: Greg Stevens End goal is Project Ecovillage combining sustainable agriculture, technology, knowledge and skills into One Village that will replace/help homeless tent cities, impoverished Indian nations and over three billion people globally living in poverty. We are working towards building a model Ecovillage on Delphi road. Youtube. come/jimbojitsu. AFLAC Angel Anderson 2590 Willamette Dr. NE Suite 102 Lacey, WA 98516 Phn: 360-742-4614 Fax: 360-705-8886 angelica_anderson@us.aflac.com Sponsor: Erik Jensen Aflac is 100% employee-paid and available on a voluntary basis. Many companies choose to offer Aflac as a cost-effective solution to help employees with the rising cost of out-of-pocket health care expense. Aflac pays cash benefits directly to your employees when they are sick or hurt. AJ Creative Aaron Jurgens 1245 Willow St. Lacey, WA 98503 Phn: 360-402-0771 aaron@ajcreative.net Sponsor: Mike Auderer American Home Weatherization Dustin Westall PO Box 430 Winlock, WA 98596 Phn: 360-880-4629 Fax: 360-785-4672 brianamechell@yahoo.com Sponsor: Scott Nolan Anchor Bank Jennifer Hembree 2610 Harrison Ave W Olympia, WA 98502 Phn: 360-754-4601 Fax: 360-754-7026 jennifer.hembree@anchorsb.com Sponsor: Jessica Rice I have three years of service with Anchor Bank, specializing in construction and conventional lending. I am conveniently located at our

West Olympia branch. We offer a full range of products and services for both individuals and businesses. Our local decision making ensures a more responsive customer experience.

CALPORTLAND Sean Roberts 305 E Summa St. Centralia, WA 98531 Phn: 360-951-8148 Fax: 360-736-4449 sroberts@calportland.com Sponsor: Erik Jensen

Anchor Bank Kasandra Jaquez 601 Woodland Square Loop SE Lacey, WA 98597 Phn: 360-491-2407 kasandra.jaquez@anchorsb.com Sponsor: Jessica Rice I am a Business Banker at Anchor Bank in Lacey with more than 10 years in the banking industry in a variety of positions. I specialize in Commercial loans of all types including SBA and enjoy working with business owners to help them realize their goals.

Daniel Shoultz Contractor Dan Shoultz 1710 Taylor St Centralia, WA 98531 Phn: 360-807-9916 Fax: 360-807-9974 srs@localaccess.com Sponsor: Merrilee DeForest, DeeDub Plumbing Darrin (Dee) Wallersteadt P.O. Box 692 East Olympia, WA 98540 Phn: 360-456-7469 Fax: 360-539-7125 deedub@comcast.net Sponsor: Heath Howerton

Associated Petroleum Products Dennis Gregory 2320 Milwaukee Way Tacoma, WA 98521 Phn: 253-627-6179 dgregory@associatedpetroleum. com Associated Petroleum Products (APP) is one of the largest fuel, lubricant, and propane suppliers in Washington State. APP has recently joined OMB with the commitment to support the construction industry with a unique Group Fuel Program to earn quarterly rebates only available to OMB members. APP believes for the program to be successful requires us to be supportive in the efforts of OMB and the construction industry.

Diamond Heating Inc. Justin Guyette 1425 N. Roosevelt Dr. Seaside, OR 97138 Phn: 503-717-1667 Fax: 503-717-4333 justin@diamondheating.net Sponsor: Raymon Bonney We are a locally owned and operated HVAC business, serving the North Coast and Washington Peninsula for over 25 years. Durney Insurance Inc. Jennifer Hogarty 409 8th Street Hoquiam, WA 98550 Phn: 360-532-0905 Fax: 360-533-5795 biz@DURNEY.COM Sponsor: Rusty Ruiz

Big Rock Construction, Inc. 2915 29th Avenue SE, Suite A Tumwater, WA 98512 Phn: 360-753-8733 info@bigrockbuilds.com www.bigrockbuilds.com Sponsor: Tina Allen Big Rock Construction, founded in 1989 and based out of Olympia, WA, is a building and development firm with extensive experience in commercial and residential property development across the state of WA. With experience in construction projects ranging from apartment complexes, assisted living facilities, tenant improvements, leasable commercial space and high value residential buildings, the goal of Big Rock Construction is to bring the skills and knowledge of the company to projects with which our experience fits.

Olympia Master Builders / Chalk Line

Excalibur Roofing & Repair, Inc. Mary Newcomb 1081 SE Craig Rd Shelton, WA 98584 Phn: 360-432-8837 Fax: 360-432-3450 excaliburroofing@qwestoffice.net Sponsor: Jeff Klingberg ICM, Inc. Janee’ Cantu 8830 Tallon Lane NE Suite A Lacey, WA 98516 Phn: 360-786-1378 Fax: 360-956-3563 Janee@icmoly.com 12

Sponsor: Fred Westfall Established in 1986, ICM assists businesses in taking control of their workers’ compensation costs through aggressive claims and safety management. We aim to Promote a strong partnership with all our clients, Provide a quality service to every single customer, and Produce results that matter to our clients. Jeff Kearin Agency/ American Family Insurance Jeff Kearin 5500 Corporate Center Lane SE Lacey, WA 98503 Phn: 360-459-0989 Fax: 360-459-0156 jkearin@amfam.com Sponsor: Paul Muldoon McCann Construction, LLC Todd McCann 203 E Chestnut Centralia, WA 98531 Phn: 360-736-5662 Fax: 360-736-5670 todd@mccannconstruct.com Sponsor: Donald Koidahl McMains Roofing Inc. Steve McMains PO Box 4578 Spanaway, WA 98387 Phn: 253-537-5569 Fax: 253-539-5016 mcmainsroofing@aol.com Sponsor: John McKinlay We are a full service roofing company, family owned and operated since 1996 and an approved vendor through Compliance Depot, having completed over 9,500 residential / commercial roofing projects. We install all tpes of roof applications including fiberglass composition shingles, tile roofing, metial roofing, cedar shake, PVC and TPO roofing. Propane ETC Bret Sukert PO Box 123 Aberdeen, WA 98520 Phn: 360-533-7337 bret@propaneetc.com Sponsor: Scott Nolan

See “New”

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July / August 2013


“New”

The Glass Guru of Centralia/ Chehalis Jerry Drake 1673 S. Market Blvd. #127 Chehalis, WA 98532 Phn: 360-740-7777 Fax: 360-740-5555 jerry@theglassguru.com Sponsor: Scott Nolan We are a full service residential and commercial window shop, specializing in moisture removal of dual paned widows. The moisture removal is a service that no other window shops perform. The process is all completed from outside. It can save as much as 50% of replacing the window and has a ten year guarantee. if needed we can replace the glass or whole window.

Sterling Breen Crushing Shari Brown PO BOX 1347 Chehalis, WA 98532 Phn: 360-736-4240 Fax: 360-736-4956 sterling@sterlingbreencrushing. com Sponsor: Merrilee DeForest

R G Construction Rusty Gill PO Box 416 Chehalis, WA 98532 Phn: 360-748-6041 Fax: 360-748-6051 srich@rgconst.com Sponsor: John McKinlay Randle Woods Stephen Roberts PO Box 96 Randle, WA 98377 Phn: 360-497-2071 Fax: 360-520-2961 woodshop@randlewoods.com Sponsor: John McKinlay

Suburban Propane Brian Crawford 18901 Pacific Ave South Spanaway, WA 98387 Phn: 253-274-1000 bcrawford@suburbanpropane. com Sponsor: Bob Kagy Suburban Propane is an industry leading distributor of propane and propane related products. For over 80 years we have proudly assisted homebuilders across the state of Washington with all of their propane needs.

Rely Local - Olympia Thane Bryenton 9733 Evergreen Valley Rd Olympia, WA 98513 Phn: 360-556-9696 thanebryenton@relylocal.com Sponsor: John McKinlay

Continued from page 12 Weststar Pacific Mortgage Jake O’Leary 2620 RW Johnson Blvd. SW, Suite 104 Tumwater, WA 98512 Phn: 360-915-9609 Fax: 360-915-9121 joleary@westloan.com Sponsor: Janine Ezzell Weststar Pacific Mortgage is a full service mortgage banker offering expertise in every area of mortgage lending; from purchase to refinance to construction lending. We have access to a full range of mortgage sources and all of our lending specialists are dedicated to finding the right loan with the best rates, terms and costs to meet your unique needs.

Vivid Electric LLC Scott Whaley 119-B Peterson Rd Chehalis, WA 98532 Phn: 360-528-1454 Fax: 360-996-2946 vividelectric.sw@gmail.com Sponsor: Aaron Carter We are an electrical and telecommunication company serving all of Western Washington. We can do large and small jobs; residential and commercial.

SD Evergreen Construction Sukh Samra 300 Deschutes Way SW Ste 110 Tumwater, WA 98501 Phn: 360-515-5025 Fax: 360-878-9650 ssamra007@gmail.com Sponsor: Jay Goldstein

Thank You to these renewing members in May and June 2013 30 Years Olympia Fireplace and Spa 25 Years Lew Rents Company 20- to 24 Years Crawford Construction, Inc. Specialty Steel Fabricators W.E. Davis Company, Inc. 15 to 19 Years Air Handlers, Inc. Boyd’s Plumbing Chehalis Rentals John’s Plumbing & Pumps, Inc. Olympic Heating & Cooling, LLC Pioneer Digging Western Washington Construction 10 to 14 Years 2-10 Home Buyers Warranty A+ Septic and Plumbing Bailey General Contractors, LLC Brown Building Contractors

July / August 2013

C A & G General Construction, LLC Hoeks Painting, LLC Industrial Electric Service Co., Inc. Interior Wood Products, LLC OSG Dozing, LLC Quality Rock Products ServiceMaster 1st Choice Tops Solid Surface Tru Truss, Inc. Washington Business Bank Wichert Electric, Inc. Zeigler’s Welding 5 to 9 Years A Glass Enterprise, Inc. Edward Jones Investments. H & R Waterworks, Inc. / The Water Company J T S General Contractor, LLC Kenyon Remodeling Kinetico Home Water Systems/Water Doctor of Washington, Inc. Northfork Construction, Inc. Olympic Iron Works, LLC 13

Schneider Homes, Inc. Snell Crane Service, Inc. Superfloors 2 to 4 Years C.T. Building, Inc. Custom Source Woodworking, Inc. H2O Jet, Inc. Packwood Ace Hardware Quinault Beach Resort and Casino Rodda Paint Strategy Insurance Brokers, LLC Trillium Carpentry, Inc. Winters Construction 1 Year Allen-Westfall Baker Underground & Const., LLC Drywall, Inc. Eden Advanced Pest Technologies LiftMaster Rosenbach Plumbing, Inc. Thurston Talk Washington State Kitchen & Bath

Olympia Master Builders / Chalk Line


OMB’s Morning Networking

Coffee Connection Starts at 8:00 a.m.

Mark your calendars and plan to join other Olympia Master Builder members the 2nd Thursday of the month for Coffee Connection. Get to know other members and their businesses!

Thursday, August 8 come to Sign A Rama 2633 Willamette Dr NE, Suite H, Lacey, WA 98516. Thursday, September 12 come to Cabinets by Trivonna, 4444 Lacey Blvd. SE, Suite G, Lacey, WA 98503 MA_4.25X5.5Ads_2011:Layout 1

3/21/11

2:45 PM

Page 2

National Association of Home Builders

Put your membership to work now. Money-saving discounts that benefit your business, your employees, and your family Visit

www.nahb.org/ma

for these and other participating companies.

Olympia Master Builders / Chalk Line

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July / August 2013


Chapter Reports OFFICERS AND DIRECTORS OF THE ASSOCIATION

be will r e r The hapte C s in no ting . e e m ust Aug

Lewis County The Lewis County Chapter will be meeting on Wednesday, September 18 at 6:00 p.m. at Ramblin Jacks Rib Eye in Napavine. The program will be “Local Candidates Night” and will provide an opportunity for the Lewis County Chapter members to visit with the local candidates about issues that affect the home building industry. During July members of the Lewis County Chapter met with Lee Napier, Lewis County Community Development Director and Fred Chapman, Lewis County Building Official to look at proposed changes to the Lewis County Building Code.

Mason County

Grays Harbor County

Builder Directors

Scott Bergford Bob Clark Andy Gruhn John Kaufman Adam Kugel

The Grays Harbor Chapter will meet on Thursday, September 5 at 6:00 p.m. at Gepetto’s, 126 Pioneer Avenue in Montesano, WA.

Associate Directors

Jeff Klingberg Heath Howerton

Holly Constantine Rusty Ruiz

Legal Counsel

The program will feaure local candidates. This will be a great opportunity to talk with the candidates about issues that affect builders in the Grays Harbor area.

Jay Goldstein

National Directors

Bob Kagy John McKinlay

Karen McClennen

State Directors

Tina Allen Tim Dickey Erik Jensen Harv Lillegard Karen McClennen Paul Muldoon Scott Nolan Jim Simmons

South Pacific County The South Pacific Chapter will meet on Thursday, September 12 at 6:00 p.m. at the Lightship Restaurant in Long Beach. The meeting will be Local Candidates Night.

The Mason County Chapter will meet on Tuesday, September 10 at 6:00 p.m. at Taylor Station. The meeting will be featuring Candidates Night!

The South Pacific Chapter had a golf tournament on June 22. All those attending enjoyed an afternoon of golf and the company of fellow members and their guests.

Join the Chapter in meeting and greeting this year’s local candidates.

The Chapter donated money in excess of green fees to Rebuilding Together. That check amounted to $1,425!

July / August 2013

Executive Committee

President............................. John McKinlay First Vice Pres.......................... Scott Nolan Treasurer.................................Ron Deering Assoc. Vice Pres.........................Ross Irwin Second Assoc. VP....................... Tina Allen Secretary..................................... Kim Asay Immed. Past Pres.................James Peterson Builder at Large....................Mike Auderer

Ray Bonney Janine Ezzell. Don Koidahl Bob Love. John McKinlay. Aaron Nester. Carmen Rowe.

Life Directors

Jack Anderson Debbi Boyd William Childress Michael Cornforth Stuart Drebick Bob Kagy Bob Love Karen McClennen Al Mullins Bill Peters Rob Rice Greg Stevens Brad Wilson

Rick Borovec Clark Burkheimer Patrick Connor Merrilee DeForest Peter Fluetsch Don Koidahl Mason Manning Linda Mosier-Vaudt Brian Panush Tommy Poplin Mark Shaffer Andrew Spear

Life Members

George King Mary Gordon, Honorary Douglas DeForest, Honorary

Lewis County Master Builders President...................................Erik Jensen First Vice Pres....................... John Johnson Assoc. Vice Pres.................... Becky Rieger Secretary............................... Rick Borovec Immed. Past Pres...................... Scott Nolan Builder Directors.................... Don Koidahl Dave Danton, Dustin Westfall Associate Directors............. Carmen Rowe, Jason Kunz

Mason County Master Builders

President.................................Aaron Nester First Vice Pres..................................... TBD Assoc. Vice Pres.......................... Mike Gill Secretary..................................... Bob Love Immed. Past Pres....................Aaron Nester

South Pacific County Master Builders

President.................................. Ray Bonney First Vice Pres.................. Steve Waltemate Immed. Past Pres...................Lori Wirkkala

Grays Harbor Master Builders President.............................. Harv Lillegard First Vice Pres..................................... TBD Assoc. Vice Pres........................ Rusty Ruiz Secretary......................... Rhonda Sturgeon Immed. Past Pres................. Harv Lillegard

Association Staff Executive Officer......................Laura Worf Dir. Member Services......Stacey Genzlinger Govt. Affairs Director................Angela White Bookkeeper............................Sally Darrow Mbr. Services Director........... Tony Brooks

Chalk Line is the official publication of the Olympia Master Builders, an affiliate of the Building Industry Association of Washington and the National Association of Home Builders. The Olympia Master Builders can be contacted at 1211 State Avenue NE, Olympia, WA 985064234. Telephone 360-754-0912 or 800-456-6473. Fax 360-754-7448. Visit our web page at www.omb.org.

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Olympia Master Builders / Chalk Line


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OLYMPIA, WA PERMIT #159

1211 STATE AVE. NE OLYMPIA, WA 98506 $1.25 per copy 360-754-0912 800-456-6473 www.omb.org

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Olympia Master Builders / Chalk Line

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1830 Black Lake Blvd. SW Olympia, WA 98501 Hours: M–F: 7am–5pm (360) 754-0300

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N150 Lake Cushman Rd. Hoodsport, WA 98548 Hours: M–Sa: 8am–5pm (360) 877-6881

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July / August 2013


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