Business Pulse magazine May | June 2022 by Business Pulse magazine

MAY / JUNE 2022

Mt. Baker Vision Clinic has clear view for future

Broad vision brings Whatcom County expansion Dr. Steven Koning and Dr. Hannah Joyner

PLUS: A closer look at “building electrification” and meeting the state’s goal of reducing emissions by 2050 Northwest Therapeutic Riding Center’s year-round adaptive recreation program Historic flooding highlights twin troubles for the future of local farming Personally Speaking with Whatcom County Sheriff Bill Elfo Business Pulse magazine 3111 Newmarket St., Ste. 106 Bellingham, WA 98226

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Your local business news brought to you by WHATCOM BUSINESS ALLIANCE

VOL. 47 | NO. 3 PUBLISHER Whatcom Business Alliance EDITOR Matthew Anderson, Bellingham PR & Communications CONTRIBUTING Heather Lea WRITERS Tony Moceri Hilary Parker Mary Louise Van Dyke Lorraine Wilde, M.S. GUEST COLUMNISTS Brett Davis Fred Likkel Jennifer Noveck, Ph.D. Drew Smith ART DIRECTOR Whitney Pearce PHOTOGRAPHY Sattva Photo EXECUTIVE DIRECTOR Barbara Chase

1415 Iowa St. • 360.734.5717

Cover Photo by Sattva Photo WBA BOARD OF DIRECTORS: BOARD CHAIR: Pam Brady, Director NW Gov’t & Public Affairs, BP Cherry Point EXECUTIVE COMMITTEE: ; John Huntley, President/ CEO, Mills Electric Inc.; Doug Thomas, President/CEO, Bellingham Cold Storage; Josh Turrell, Partner, Larson Gross PLLC; Josh Wright, VP/Broker, Bell-Anderson Insurance BOARD OF DIRECTORS: Tyler Byrd, CEO, Red Rokk Interactive; Jane Carten, President, Saturna Capital; Andy Enfield, Vice President, Enfield Farms; Bryant Engebretson, Managing Principal, Tradewinds Capital; Jon Ensch, Commercial Banking Officer, Peoples Bank; Mitch Faber, Partner, Adelstein Sharpe & Serka; Sandy Keathley, Former Owner, K & K Industries; Tony Larson, President, Barlean’s; Becky Raney, Former Owner, Print & Copy Factory; Sarah Rothenbuhler, Owner/ CEO, Birch Equipment; Patrick Schuppert, Commercial Banking Relationship Manager, Wells Fargo; Galen Smith, Operations Manager/Owner, Coldstream Farms; Carryn Vande Griend, Government Affairs Representative, PSE; Billy VanZanten, CEO, Western Refinery Services For editorial comments and suggestions, write info@whatcombusinessalliance.com. The magazine is published bimonthly at 3111 Newmarket St., Ste. 106, Bellingham WA 98226. (360) 746-0418. Yearly subscription rate is $25 (US). For digital subscription, visit businesspulse.com. Entire contents copyrighted ©2022 Business Pulse. All rights reserved. POSTMASTER: Send address changes to Business Pulse, 3111 Newmarket St. Ste. 106, Bellingham WA 98226

MAY/JUN 2022 | BUSINESSPULSE.COM

IN THIS ISSUE 10

MT. BAKER VISION CLINIC EYES GROWTH OPPORTUNITIES Finding rhythm and expansion in the postpandemic future.

MAKING THE SHIFT AWAY FROM FOSSIL FUELS Building electrification is coming, along with a large number of unknowns.

20 GIVING A LEG UP TO THOSE WITH DISABILITIES

Northwest Therapeutic Riding Center helps participants recognize their full potential.

25 WHAT RECRUITING TAKES

After nine years, Whatcom County lands Marcon Metals — a big win for the community.

32 PODCAST TEAM LIFTS SMALL BUSINESSES

Now in their third season, they are shining a light on local businesses and entrepreneurs.

PERSONALLY SPEAKING

Whatcom County Sheriff Bill Elfo discusses the challenges of law enforcement, criminal justice reforms and the increasing lawlessness in the county.

COLUMNS 35 Recent flooding

Look for additional content online at businesspulse.com

highlights water management troubles

37 Experts spot under-the-

radar issues from recent legislative session

47 What went right and

wrong this legislative session

BUSINESSPULSE.COM | MAY/JUN 2022

50 Patsy Williams, recipient of the first Jon B. Strong Employee of the Year Award

52 Photo highlights from the 2022 Whatcom Business Awards

56 International rail line

in service after three months of repair work

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BP UP FRONT

Though the challenges we face are not small, I believe we are up to the task Rather than focus on others’ failures, let’s look at what we can do to right the ship Here we are. Inflation is skyrocketing to the highest level in over 40 years. Fuel costs are at an all-time high and not expected to decline for a long time. The cost of living is putting a pinch on family budgets, and housing costs continue to spiral out of control. The ongoing shocks of the past few years are still being felt in our communities. In the coming year, the WBA will continue to monitor local and state legislation and advocate for commonsense bills and policies that reduce regulatory burdens, support economic growth in our industries and prioritize the budgets of small businesses and working families and individuals. Our local businesses are some of the most regulated and taxed in the nation, and we need policies that recognize small businesses and households are still recovering economically from the pandemic and should not be further taxed or regulated. The private sector continues to be the primary engine of prosperity here, though small business continues to face an uphill climb.

BUSINESSPULSE.COM | MAY/JUN 2022

Whatcom County deserves elected officials who will place their the people’s needs first rather than last. In this issue, you’ll find some interesting articles on what went right and wrong during the recent legislative session and bills to watch. But there is some good news to report! Although we will battle variants of COVID-19 for an undetermined amount of time, we are resuming our daily lives with a renewed sense of enjoyment and appreciation as we head into the summer season. Whatcom County is still one of the most desirable, best places to live in the entire country. One big reason our fundamentals are so strong is that we are home to the talented leaders and dynamic businesses covered in this edition of Business Pulse. This was on full display at our Whatcom Business Awards in March. If you missed it, we’ve got some great event photos and highlights starting on Page 52. We hope you can make it next year! Many companies are expanding and growing post-pandemic. One of those is Mt. Baker Vision Clinic (Page 10), which will be opening its third clinic

in July. The Port of Bellingham just scored a big win for our community for job growth and local investment after a nine-year recruitment phase with Marcon Metalfab (Page 25). We also have wonderful businesses helping others in our community. Since 1993, Northwest Therapeutic Riding Center (Page 20) has carried out its mission of “Giving a Leg Up” to people of all abilities as the only yearround adaptive recreation program

WBA ANNUAL MEMBER MEETING May 25, 2022 • Meet the Board of Directors and staff • Network with other members • Special guest speaker, Dann Mead Smith • Continental breakfast

RSVP is required 360.746.0418

in the county. Building Bellingham (Page 32) showcases other local businesses on its weekly podcast, now in its third year. WRS recently completed a three-month project to restore the international rail line that was damaged in the November flooding (Page 56). With all the continued growth and recent criminal justice reforms, Whatcom County Sheriff Bill Elfo (Page 41) addresses some of the challenges facing local law enforcement today and provides guidance for business owners. Throughout the past year, I truly believed the story of our county would be defined by the optimism, hope and strong business leadership that are so prevalent in our community. These past few years have been rough, and while there are still plenty of challenges in front of our community and nation, we will succeed because of the leaders celebrated at our recent event and covered in this issue of Business Pulse. In the meantime, please enjoy this issue. Thank you, as always, for your continued support of our readers, leaders and advertisers. We could not do what we do without you.

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Barbara Chase, Executive Director Whatcom Business Alliance

MAY/JUN 2022 | BUSINESSPULSE.COM

BP NEWSMAKERS

Ken Mann

Vivian Qu

Ken Mann joins Pacific Continental Realty Ken Mann recently joined Bellingham-based Pacific Continental Realty as a commercial real estate broker, blending his experience in design, construction, finance and politics. Mann earned a degree in civil engineering from Carnegie Mellon University and worked with a real estate development firm in New York City. He also served two terms on the Whatcom County Council. Mann and his wife, Amy, have holdings that include farmland, multifamily residential, commercial, industrial and vacation properties. Most of their holdings are in Bellingham, with their most notable local project having been the renovation of the Hinsdale Hardware Building and the Northwest Grocery Company building on Commercial Street. Current tenants are the popular Brandywine Kitchen and Uisce Irish Pub. “My diverse background provides an excellent framework to evaluate potential real estate projects,” Mann said. “I love the process of analyzing and underwriting deals or managing a development project. At PCR, my focus is on matching investors with strategic properties throughout the region.” For more information, visit www.pacificcontinentalrealty.com.

BUSINESSPULSE.COM | MAY/JUN 2022

Stephanie Hermanutz

Anusha Jagadish

Tidal Vision acquires ViaeX Technologies Inc. Tidal Vision Products Inc., the leading innovator of chitosan chemistry solutions for the water treatment, textiles and agriculture industries, has announced the acquisition of ViaeX Technologies Inc., a Bay Area startup that developed several innovative chitosan-based technologies that displace non-biodegradable and toxic materials with biomolecular solutions for several large industrial applications. As part of the acquisition, Tidal Vision also announced that ViaeX’s CEO and founder, Vivian Qu, has joined the company as chief product officer. “This is an exciting acquisition for Tidal Vision that will accelerate further developments of chitosan biomolecular solutions in the industries we are already serving and accelerate our impact into new sectors,” said Craig Kasberg, co-founder and CEO of Tidal Vision. “Vivian has advanced chitosan’s use as a fibrous filtration material, bioplastic film and bioresin and has pushed product innovation significantly on those fronts. Her expertise in material science and bioengineering with chitosan and chitosan nanomaterials will help us increase our speed of innovation and the rollout of new product lines. We couldn’t be more excited to bring Vivian on board.” To conduct its groundbreaking research and testing, ViaeX built customized, proprietary lab equipment. Over five years, the company

also developed multiple intellectual properties around several technologies relevant to Tidal Vision. Kasberg noted that the acquisition of that lab and its equipment will have several major benefits. First, it will significantly advance the characterization and materials synthesis capabilities at Tidal Vision. Second, it will spur the development of new products and new capabilities to increase Tidal Vision’s core offerings to customers. Now that the company has this additional research and development equipment, it will offer industry research and co-devel-

opment offerings to companies that can benefit from its technology stack, ranging from zero-waste chitosan manufacturing to the delivery of special biopolymer derivatives. The company has begun to hire additional staff to expand the development group under Qu’s expertise and leadership. “Tidal Vision has developed liquid chitosan biomolecular solutions for water treatment, textiles and agriculture that are high quality, consistent, customizable and proven at scale,” Kasberg said. “Vivian has been developing chitosan-based nanotechnology solutions. By matching her expertise to our own, we now have a full suite of products and services to offer our customers that are sustainable, low cost, and convenient for mass adoption.” As leader of ViaeX, Qu collaborated with large corporations on joint developments, and Tidal Vision will continue and expand efforts in those

collaborations. “I am thrilled to join Tidal Vision,” Qu said. “We believe that chitosan has the unique properties and power to change the world. Tidal Vision has momentum and determination to expand the uses of chitosan, and I’m excited to be a part of that.” Tidal Vision’s mission is to create positive and systemic environmental impact. For more information about the company, please visit www.tidalvision.com.

VSH promotes Stephanie Hermanutz to senior tax manager Stephanie Hermanutz graduated from Western Washington University with a master’s degree in professional accounting in 2014. She joined VSH that year and went on to earn her certified public accountant designation in 2015. Since then, she has grown to become a leader in the international tax department. Hermanutz most enjoys helping individuals and businesses build the best tax strategy for both sides of the border. She helps them understand current regulations and advises them on the right courses of action to take. Hermanutz also develops planning for all stages of business, including formation, growth and sale. “Stephanie has been an integral part of the international team since she began at VSH and leads the international tax reform initiative,” said Chris Sullivan, partner and head of the international department. “We value her technical expertise and the enthusiasm she brings to her work in helping clients achieve their business goals.” Hermanutz is member of the Washington Society of Certified Public Accountants and appreciates being able to spend time involved with her alma mater on WWU’s accounting advisory board. She has been an international

tax guest lecturer and a speaker at the accounting student orientation, and she has assisted in training sessions for the IRS Volunteer Income Tax Assistance program. Please visit www.vshcpa.com.

Anusha Jagadish joins PeaceHealth Medical Group Dr. Anusha Jagadish joined the PeaceHealth Medical Group family medicine team in Bellingham in January 2022. Her medical interests include preventive and lifestyle medicine and mental health. She sees patients at the Cordata main clinic. Jagadish studied at the Texas College of Osteopathic Medicine in Fort Worth, Texas, and completed her residency in family medicine at AdventHealth Orlando in Winter Park, Florida.

While completing her residency, Jagadish worked at the AdventHealth Medical Group Community Medicine Clinic, providing primary care for uninsured and underserved patients. “I am passionate about human rights and equal access to medical care,” she said. Jagadish has engaged in community service in all the communities where she has lived and worked. Advocating for and helping patients make informed decisions about their well-being is the basis of Jagadish’s practice. “I feel I can better provide for my patients by getting to know them through whole person care,” she said. The Cordata Family Medicine clinic may be reached at 360-752-5165 or online at www.peacehealth.org.

Bellingham commercial property vacancies, rent rates dip in 1Q 2022 Commercial property vacancy rates and asking rents declined across all asset classes in Bellingham during the first quarter of 2022, according to a report prepared by Ryan A. Martin, co-owner and broker at Pacific Continental Realty in Bellingham. Leasing activity remained steady for the first three months of the year, Martin said, but he’s noted a slowdown in commercial real estate investment sales as interest rates rise. It’s expected the interest rates will continue to rise modestly through the second quarter, keeping commercial sales volume lower. “The rising interest rates should have little to no effect on commercial vacancy rates, and I expect to see commercial asking rates rise in 2022 due to pressure from inflation and the overall cost of real estate,” Martin said. “Canada officially removed its COVID testing requirement for cross-border travelers April 1, and

we’re seeing more Canadian license plates in Bellingham,” Martin said. “Hopefully, this change in policy results in more retail sales.” Bellingham office space vacancy rates kept falling and is now at 3.35%, down from 4.56% a year ago. “We are currently seeing a trend of tech companies downsizing their office footprint as they continue to allow employees to work from home,” Martin said. “While some of the larger tech companies downsize, we are seeing the remaining office space backfilled by smaller businesses coming back to office buildings as the worries about COVID continue to fade.” The industrial market in Bellingham continues to struggle to keep up with demand. There is currently less than 15,000 square feet of industrial space available to lease in Bellingham and a vacancy rate of 0.2%. No new industrial buildings are under construction.

MAY/JUN 2022 | BUSINESSPULSE.COM

BP FEATURE

PHOTOS: Sattva Photo

Mt. Baker Vision finding focus in COVID-19’s wake Third location to open in Ferndale this summer Mary Louise Van Dyke

BUSINESSPULSE.COM | MAY/JUN 2022

Dr. Steven Koning and Dr. Hannah Joyner.

With COVID-19 restrictions easing, the eye doctors and staff of Mt. Baker Vision Clinic are seeing familiar and new faces troop through the doors at the Bellingham and Lynden locations. The clinic’s new Ferndale location is scheduled to open this summer. “We’re starting to find our rhythm here again at the clinics,” said optometrist Dr. Kelly Larsen. Mt. Baker Vision opened its first office in Bellingham in 1951. Eye care in that era included prescriptions for glasses and contact lenses fashioned out of hard plastic. Larsen and business partner Dr. Brian Koning head the business today, and patients have access to a variety of services, including glasses, contact lenses, OrthoK lenses — which offer a non-surgical eye treatment for myopia and stigmatisms — and scleral lenses

for corneal issues. Patients are served by 18 employees, all of whom live in Whatcom County. Among the five eye health doctors are part-timer Dr. Jeff Larson, who, along with Dr. Wayne Musselman, who retired in 2020, was in the second generation of owners. The clinic’s two other optometrists are Dr. Hannah Joyner and Dr. Steven Koning. “There’s a lot of joy that comes from having staff who care as they do,” Brian Koning said. Koning joined the practice in 2011, and Larsen came aboard in 2015. Koning grew up in Idaho, graduated from Pacific University College of Optometry and completed a residency in Salt Lake City. His areas of specialty include management of eye conditions related to diabetes, macular degeneration, glaucoma and specialty contact lenses,

and co-managing LASIK and cataract surgical cases. Patients vary from the preschooler who doesn’t want to be fitted with glasses to the 80-something person who has just lost a spouse. “Everyone comes with their own story,” Koning said. “We have the chance to meet them, and we’re there to take care of them. We do it with excellence.” Larsen, who moved to the Pacific Northwest in 1995, is a graduate of Pacific University and specializes in diagnosing and treating ophthalmic disease. She has adopted a team-based approach to care, one in which a person’s health care team coordinates and works together. Larsen describes her dual role as focused on taking care of people. “What I like best are the people I get

MAY/JUN 2022 | BUSINESSPULSE.COM

Top right: Dr. Joyner and patient during eye exam. Bottom right: Dr. Joyner and technician, Sarah Ross, help a client choose the right frames.

to meet each day, and I get to work with a diverse and wonderful group of folks,” she said. Mt. Baker Vision weathered the pandemic well, adding a new location in Ferndale and expanding the Lynden office at 1610 Grover St. The Lynden clinic was small and outdated, with a single examination room. Another business at the location left during the pandemic, giving Mt. Baker Vision an opportunity to take over the vacated space. “In the middle of COVID, we decided there was no time like the present to remodel and expand,” Koning said.

BUSINESSPULSE.COM | MAY/JUN 2022

With the remodel, patients in the Lynden area who live with macular challenges can be seen closer to home, he said. The clinic has been drawing about 20% of its patients from the Ferndale area, so company leaders decided to add a third location there, at 1887 Main St. The 2,000-square-foot facility is scheduled to begin serving patients in July. “That was a fun, slightly nerve-wracking time, not knowing what the economy was going to do,” Koning said. Doctors and staff are currently seeing

PHOTOS: Sattva Photo

more pediatric patients whose vision shows the effects of staring at computer screens for online learning classes and doing a lot of work that calls for using near vision, Larsen said. Koning and Larsen are looking forward to seeing the Ferndale location grow and developing ties with the community in that area, they said, while continuing to focus on providing the best eye care possible for patients. ■

MAY/JUN 2022 | BUSINESSPULSE.COM

Plans in place to shift away from fossil fuels Getting up to speed on building electrification Lorraine Wilde, M.S.

FEATURE BP

“A measured transition over the coming decades will meet our climate targets and keep our energy reliable and affordable. We can do all that. But if we delay, then we have to do much more drastic things that will be more expensive and impactful.” — Washington Rep. Alex Ramel

he term “building electrification” is used broadly to describe legislative and building code changes meant to limit the production of greenhouse gases responsible for climate change. The process shifts energy consumption toward electricity use and away from fossil fuels for heating, cooling, cooking and other uses, with a goal of achieving energy-efficient buildings powered by solar, wind and other sources of zero-carbon electricity. There are many reasons for the shift. Buildings are the fastest-growing source of carbon emissions in Washington state, according to the Department of Ecology. Yearly leaks from gas stoves in the U.S. have the climate impact equivalent to emissions from half a million passenger vehicles, according to a study published in the journal Environmental Science and Technology. Gas cooking also has been documented to be harmful to health. And today’s modern, electric appliances use less energy overall compared to gas-fired equipment. Washington’s 2021 State Energy Strategy found that electrifying buildings will be the lowest-cost approach to meeting the state’s goal of reducing emissions by 95% of 1990 levels by 2050. Some business owners have focused on increasing energy efficiency and incorporating “greener” choices grad-

ually to save money. Others are concerned about the large number of unknowns — including how we’ll pay for the changes and what impacts they will have on jobs and the economy. Many of these changes are expected to shift from voluntary to mandatory as we get closer to climate planning milestones. “A measured transition over the coming decades will meet our climate targets and keep our energy reliable and affordable,” says Washington Rep. Alex Ramel. “We can do all that. But if we delay, then we have to do much more drastic things that will be more expensive and impactful.” Ramel is currently running for re-election against Trevor Smith, the political director for Laborers Local 292. Smith’s platform includes protecting workers affected by future declines in fossil fuel-related jobs — perhaps retraining them to work on sea level rise infrastructure. Local measures To date, more than 34 states and 9,000 cities have implemented or are in the process of developing a climate action plan to boost resilience against rising sea levels and increased temperatures, flooding, drought and wildfires, according to the Center for Climate and Energy Solutions. In 2007, the Bellingham City Council unveiled its first

MAY/JUN 2022 | BUSINESSPULSE.COM

such plan, which was updated in 2018 and is due for revision in 2023. The plan to meet carbon-reduction targets includes a goal for the city to be 100% carbon-neutral by 2050. The council enacted its first building electrification ordinance in February by a unanimous vote. Bellingham is just the third city in the state to adopt an electrification ordinance. In August, new commercial and apartment buildings with four or more stories will need to meet energy-reduction standards; use electricity for heating, cooling and water heating; and use solar energy or provide rooftop space for future solar installation. Whatcom County has a host of builders with decades of experience in energy-efficient construction, says Rose Lathrop, director of Sustainable Connections’ Green Building & Smart Growth Program. “Our above-code builders are out in the front of the pack on these technologies and the building science,” she says. “Our green building community has already identified ways to achieve the same outcome at a comparable price.” State and federal legislation The Washington Climate Commitment Act, passed by the Legislature in 2021, establishes a program — set to begin in 2023 — to reduce carbon emissions and achieve state greenhouse gas limits. Bellingham’s new ordinance does not cover existing buildings or residential buildings with three or fewer stories.

BUSINESSPULSE.COM | MAY/JUN 2022

“In Washington, the city doesn’t have control over the residential building code,” Lathrop says. “Only the state does.” Ramel co-sponsored a bill that would have authorized cities to adopt local codes for new residential buildings. The bill did not pass but is likely to appear again soon, since similar bills have passed elsewhere. Several other bills related to energy efficiency did pass into law this year. Senate Bill 5722, for example, includes an energy efficiency performance requirement for existing commercial buildings, Ramel said. The bill also authorizes the Department of Commerce to create an incentive program to help building owners upgrade. President Joe Biden is being urged to use the Defense Production Act to rapidly increase production of renewable energy technologies that businesses need to reduce dependence on Russian gas supplies — the subject of sanctions resulting from the country’s attacks on Ukraine.

Some cost savings can be found by not having to run gas distribution lines or install gas meters, piping and venting. Focusing only on initial costs is misleading, Ramel said. “For most cases, this is going to save building owners money,” he said. “In new construction, they are putting in a different heating and cooling system. It’s not a significant increase in cost, and it’s certainly an energy savings, because heat pumps are so efficient. The best gas furnaces on the market are around 94% efficient, while heat pumps are about three times that.” Although there are not currently many incentives in place specifically for fuel switching, they’re being developed. The proposed Climate Action Fund is being considered by the City Council in May and could land on the November ballot, Lathrop said. “If it passes,” she said, “we would have millions of dollars to spend each year with people and businesses in need.”

Transition costs and incentives “There is fear of having to do things differently and that it’s going to increase the cost of construction, which right now is pretty high,” Lathrop said. “Pandemic supply chain and workforce issues have increased the cost of these heat pump water heaters that we will all eventually have. But what we typically see with these key new technologies over time is that the cost will come down.”

Electricity dependence Some wonder whether these plans will result in higher electricity bills and problems addressing increased demand. Recent rate increases have only stoked those fears. Utility rate changes are controlled by the Washington Utilities and Transportation Commission, which ensures that investor-owned utility and transportation services are safe, available, reliable and fairly priced. While fossil fuel prices fluctuate

widely, electricity rates remain relatively stable. “It’s our job as a utility to ensure we procure enough energy to meet demand. If you’re looking for a predictable hedge for your future, electricity is a way better bet for managing business costs than a fossil-based product,” said William Einstein, director of product development and growth at Puget Sound Energy. Utilities also are facing plenty of transitions. “You’ll see additions of solar and wind energy added to our portfolio of energy sources,” Einstein said. “By law, by 2025, we have to have coal out of our generation mix, and we’re working now to get there.” “One other con we’ll face is loss of consumer choice,” Lathrop said. “Some people like a gas fireplace they can just turn on without chopping wood. And at some point, when your gas hot water heater dies, you won’t be able to just get a new one.” Lathrop recommends that busi-

nesses develop five- or 10-year plans to avoid getting stuck with last-minute choices that are more urgent and expensive.

said Port Commissioner Michael Shepard. “These solar electrification projects directly benefit our local economy. We make solar panels and converters right here in Whatcom Job loss and creation County.” A study by UCLA found that elecAdrienne Hegedus, the Port’s sustrifying California’s buildings over tainability program manager, is leadthe next 25 years would create eight ing development of the Port’s Clitimes as many jobs as may be lost in mate Action Strategy, which could the gas industry. be adopted later this year. It will ad“The gas pipefitter jobs will be lost dress the electrification of almost 100 gradually over the next several years,” buildings in Whatcom County. Lathrop said. “But in our area, installation of new energy systems in the Building resilience together waterfront area will need a lot of work Many energy incentives are availfrom our local pipefitter’s union.” able to businesses ready to ride the Even more workers will be neces- wave. sary when we get to the more comThe Sustainable Connections plex and custom retrofitting of exist- Community Energy Challenge offers ing buildings. The Port of Bellingham low-cost weatherization and energy is already preparing for electrification. efficiency assessments to commercial “The solar array installation on customers. Its Energize Whatcom the Bellingham Cruise Terminal is program helps businesses at a cost of the largest municipal solar project just $50, and in many cases includes in Whatcom County right now,” thousands of dollars in free upgrades and incentives.

“If we never changed the energy code, we’d be living and working in 1980s moldy, leaky fire hazards. Change is hard. But we’re getting better and better. We have to.” — Rose Lathrop, director of Sustainable Connections’ Green Building & Smart Growth Program

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

BUSINESSPULSE.COM | MAY/JUN 2022

Plus, the U.S. Department of Agriculture is offering rural businesses a 25% grant for energy efficiency or renewable energy projects, including fuel switching, Lathrop said. Puget Sound Energy offers an array of guidance and incentives for energy efficiency, including its Energy Advisor, Clean Buildings Accelerator, New Construction and Custom Grant programs. On March 30, Gov. Inslee signed House Bill 1814, introducing a $100 million fund for large community solar installations. The State Building Code Council is currently updating energy codes. “Every three years, the code is updated with the intention of steadily moving toward a 70% improvement in energy efficiency — compared to a 2006 baseline — by 2030,” said Ramel, a member of the council. Any changes would take effect in 2024. Whenever change happens, people tend to worry about affordability, Lathrop said. “But if we never changed the energy code, we’d be living and working in 1980s moldy, leaky fire hazards,” she said. “Change is hard. But we’re getting better and better. We have to.”

Courtesy photos.

BUSINESSPULSE.COM | MAY/JUN 2022

FEATURE BP

Giving a leg up to those with disabilities Northwest Therapeutic Riding Center helps participants reach beyond barriers Heather Lea

oday, perhaps more than ever, we are seeing animals in the role of caregivers. Bellingham has a cat café and puppy-petting facilities, and bringing a furry loved one into a store or pub is no longer uncommon. So, it makes sense that horses would fall into the caregiving category in the same capacity. While you’re unlikely to find a horse walking into a bar (there’s probably a joke in there somewhere), you will find these stoic, loving creatures at Northwest Therapeutic Riding Center helping people. How? NWTRC accommodates individuals with mental and physical disabilities by providing equine-assisted services. This, in turn, allows people to recognize their full potential, reaching beyond physical and mental barriers to find empowerment and independence. The calming nature of the riding center horses is a crucial aid for people with cognitive, physical, emotional and social challenges. Participants,

volunteers and parents have expressed their amazement at the benefits, balance, muscle tone and strength gained along with increased social interaction, emotional awareness, confidence, impulse control, trust and problem-solving skills. “I am surprised by how dramatic [my daughter’s] improvement has been,” said one mother of a participant with Down syndrome. “Now, I see her sitting up tall, developing balance and core strength. I see her interacting in a loving way with her horse and really feeling proud of herself.” Riding is only part of the experience at NWTRC; participants take part in grooming and preparing their horses for riding, getting the chance to watch and join in the entire process. NWTRC is located at 1884 Kelly Road on five acres owned by Julia and Mike Bozzo. The non-profit organization was founded in 1993 when Julia Bozzo recognized a need for recreational activities among people with disabilities.

She has always loved horses. “When I was a kid, I had a paper route to raise money to buy horses,” she said. “I’ve been riding and working with horses and riders for over 40 years.” Julia Bozzo, NWTRC’s founder and executive director, has a bachelor’s degree in agriculture and horse production from Wilmington College, and she completed her graduate work in animal science at New Mexico State University. She is also a Professional Association of Therapeutic Horsemanship international certified instructor and a certified equine appraiser. Her accomplishments include the 2021 Whatcom Women in Business Legacy Award, the 2019 PATH International Region 9 Certified Professional of the Year, the 2012 Whatcom Dispute Resolution Center Peace Builder Award, and the 2002 PATH International Region 9 Volunteer of the Year. NWTRC has two full-time employees: Julia Bozzo and Hilary Groh.

MAY/JUN 2022 | BUSINESSPULSE.COM

Courtesy photos.

NWTRC also provides 100 volunteer opportunities annually. Volunteers help with riding lessons, horse care and special events, and they serve on the board of directors. Of course, without horses, NWTRC wouldn’t exist. That’s why Bozzo and her team take great care in the well-being of their steeds. The horses are fed, exercised and groomed daily, and they seem to really enjoy their jobs. “We don’t overuse them,” Bozzo says. “They can walk, trot, do a little jumping, but our horses don’t go out more than twice a day.” There are six horses at the riding school. Kleng is a 13.3-hand Norwegian Fjord with a “friendly, calm personality, a strong, steady walk, and a ‘rocking horse’ canter.” He has won several awards, including the 2009 International Therapeutic Horse of the Year award. Kleng was inducted into the Horse Stars Hall of Fame – Humanitarian Equine in 2013. Leonardo is a 14.1-hand registered AQHA gelding who came to NWTRC in 2016. He is a favorite for his buckskin coat and calm, smart character traits. Henry T. Fjord, 14.3 hands, is a registered Norwegian Fjord gelding. He likes being “the center of attention” and knows what his riders need.

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Henry won the Region 9 horse of the year award in 2020. Vincent, 15.2 hands, is owned by Julia herself and is a Trakehner/quarter horse gelding. He’s a social guy and “never stops searching for treats.” Jouri, a 14-hand Haflinger, is the only mare in the program. She is a “quick study” and loves being part of the action. Finally, Bruce, a 15-hand Grulla, is a quarter horse gelding in training to work at the riding center. He has a delightful temperament and the center looks forward to many years with him, Bozzo said. When I visited the riding center, Bozzo’s enthusiasm for the animals, the participants and their families was evident. She has done an incredible amount of work on the property, as has her husband, Mike, who does all the maintenance and construction. Julia showed me a new, expertly crafted building Mike Bozzo built called the “Stable Classroom,” where education and skills training take place. When we walked in and I remarked on how warm it was inside, she pointed out the window to a tarp-covered container measuring about 8 feet by 8 feet by 4 feet. “That’s all manure, and it heats this building,” Bozzo said. “The floor is 68 degrees, and the room is 65.”

The heat from this “passive compost system” comes from the composting manure, which heats water feeding to pipes under the concrete floor. I follow Julia to a large pile of horse manure under the roof of an outbuilding. There is no smell. “We clean the stalls every day and collect the manure in the building, where it’s composted and used for fertilizer and heat for the building,” she said. This nonprofit organization is doing great things, environmentally and for the human body and mind. Said one parent, “The NWTRC has instilled such confidence in my daughter, not just as an equestrian but also as a young woman who has to do most things differently than her peers. You can see in her smile as she rides that she feels strong and empowered.” Julia tells me about a rider who’s been with them for 15 years. He has autism and attention-deficit/hyperactivity disorder. “He was extremely distracted and difficult to communicate with,” she says. “He needed a leader and side walkers to help him focus and stay on the horse. He now is able to bring his horse in from the paddock and groom and tack the horse up. He can walk, trot and canter. He also has been a volunteer here during riding lessons.” NWTRC is the only adaptive yearround recreation program in Whatcom County that serves people of all ages with physical, emotional, behavioral, sensory and cognitive disabilities. “We are driven by our mission of ‘Giving a Leg Up’ to people of all abilities,” Julia says. “In the horse world, a

‘leg up’ means to give someone a boost onto their horse. At the riding center, the boost carries them not just onto their horse’s back, but also into their lives.” NWTRC provides lessons and adapts them as needed. Equine-assisted activities are an important recreational, therapeutic and holistic option for many people with disabilities. The center’s services go beyond horseback riding and include ground activities, grooming and stable management. “Each session is designed for the individual’s abilities, therapeutic needs and goals, with the objective of optimizing health, independence and well-being,” Julia says. Participants range in age from 4 to 70. Many have secondary diagnoses in multiple categories, for example, Down syndrome, autism spectrum disorder, traumatic brain injury, cerebral palsy, post-traumatic stress disorder and ADHD. Horse experience is not necessary, though the center cannot accommodate persons with rods in their backs or those prone to seizures. To help give NWTRC a “leg up,” Bozzo is always looking for volunteers for the center’s lesson program. She also encourages attending and/or sponsoring events, such as the Denim to Diamonds dinner and auction July 23 and the annual golf tournament Aug. 15. “Our staff and board are very excited to diversify programming and to offer more continuing education for the center, the industry and our community,” she says. “We are all looking forward to creating a fun and inclusive learning area that will last for decades to come.” ■

Courtesy photos.

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ECONOMIC DEVELOPMENT BP

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What recruitment REALLY takes Nine-year pursuit lands major company in Whatcom County Jennifer Noveck, Ph.D. In 2013, nearly a decade ago, the Canadian-owned company Marcon Metalfab first contacted John Michener, economic development project manager at the Port of Bellingham. Marcon is a metal fabrication company specializing in dynamic bridge components that has contributed to infrastructure and transportation construction and rehabilitation projects throughout North America. As such, the company was looking for a metal fabrication company in Whatcom County to purchase. At the time, nothing was available. Well trained in business recruitment, retention and ex-

pansion work, Michener knew Marcon would be a great addition to Whatcom’s local economy. Importantly, the product it made was much needed in the state of Washington, with its 7,000-plus bridges over many rivers, lakes and waterways. With 15 years of economic development experience, Michener has assisted multiple companies with retention and expansion projects and has facilitated millions of dollars of investment in Whatcom County. In 2013, he earned the Economic Development Finance Professional certification. In 2021, after intensive coursework and six

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months of studying with other development professionals, Michener earned the designation of Certified Economic Developer. CEcD is a national recognition that denotes a mastery of skills in economic development, professional attainment and a commitment to personal and professional growth. There are currently only 1,100 active CEcDs in the United States. With patience and persistence, Michener kept in regular touch, visiting Marcon to check in when he traveled to Lower British Columbia for business development work. Six years later, in 2019, Marcon was ready to once again look at an investment in the U.S., and this time the company wanted to create its own facility. Having already established a good relationship, Michener worked diligently with Marcon decision-makers, meeting with them several times at the company’s Delta, British Columbia, location and throughout Whatcom County to show them prospective sites. During Marcon’s site selection, COVID-19 hit, creating a completely new level of business and border restrictions. Undeterred, Michener continued to work with Marcon, setting up meetings with the Whatcom County executive, getting cross-border letters of entry signed, helping with visa applications, and taking multiple other steps to allow the business recruitment work to continue. In September 2020, his hard work

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“New job opportunities, along with Marcon’s significant investment in their new Ferndale facility, are big wins for the citizens of Whatcom County.” – Rob Fix, executive director of the Port of Bellingham

paid off; the company closed on a 50,000-square-foot building in Ferndale, with additional land for future expansion, and began investing in the new Whatcom County facility. Michener continued to assist Marcon to help overcome permitting challenges. In March 2021, in the midst of the pandemic, Marcon opened for business. To date, Marcon has invested $11.5 million in land, building, equipment and working capital. Twenty-four people are employed at the new facility, and the company plans to add an additional eight positions within the next few months. The annual payroll is estimated at $1.85 million and growing. “As a community, we are proud of the work John performed to bring this dynamic company and the number of well-paying jobs that came with it to Whatcom County,” said Don Goldberg, director of economic development at the Port of Belling-

ham. “By maintaining the relationship with Marcon over a number of years and then assisting them with all issues of setting up in the United States, John was instrumental in helping the company gain the certainty they needed to go ahead and make the investment.” Michener’s work with Marcon was recognized by the Washington Economic Development Association as the 2022 Economic Development Project of the Year for business recruitment. According to WEDA, the award celebrates the successful creation or completion of a creative, economically significant and/ or model project in a community or region. Factors influencing who wins the award include the extent of the economic impact, the development of partnerships, innovation, originality, whether the project or program can be duplicated as a “best practice,” and whether the project or program appears to be cost-effective.

According to his training, Michener said, over 85% of all new jobs come from startups and retention and expansion activities. Successful recruitments that result in well-paying jobs, while creating great news headlines, are rare and often take even more time, he said, giving truth to the adage that “economic development is measured in decades, rather than years.” “Sustainable economic development is central to the Port’s mission for Whatcom County,” said Port of Bellingham Executive Director Rob Fix. “I’m proud of our economic development team for having the persistence and professionalism necessary to bring Marcon Metals to Whatcom County during the height of the global pandemic. New job opportunities, along with Marcon’s significant investment in their new Ferndale facility, are big wins for the citizens of Whatcom County.” To learn more about the Port of Bellingham’s economic development work, visit www.portofbellingham. com/154/Economic-Development. ■

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WORKFORCE DEVELOPMENT BP

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Washington wants to require state training before you can get a job Expanded apprenticeship requirements could cripple industries and leave many workers on the outside Mark Harmsworth For many trade industries in Washington, state-run apprenticeship programs are the gateway to licensing and job opportunities. Now, the Washington State Apprenticeship & Training Council, part of the state Department of Labor & Industries, is looking to expand apprenticeship programs to other industry sectors, creating a certification requirement and the unionization of industry segments where there were none before. This expansion is problematic, as it will drive up employer costs, decrease employee salaries and limit the availability of jobs. For an example of an existing certification program that has limited the number of available workers, look to the electrical industry. The electrical certification program for moving from trainee to electrical journeyman to master electrician requires multiple hours of on-the-job training and a state-sponsored training program overseen by WSATC. While this creates a standard approach to training across the industry, it also limits the potential job opportunities for electricians. Partly due to the pandemic, partly due to retirements, and partly because only the International Brotherhood of Electrical Workers and the Construction Industry

Training Council offer the certification programs for new recruits, Washington is now facing an industry shortage of electricians. To make things worse, Senate Bill 6126, signed into law in 2018, allows only state-approved programs to offer certification, creating a virtual monopoly for CITC and IBEW on the certification process. The WSATC, because of the limited certification opportunities, has become the body controlling the number of electrician jobs in the state. Now WSATC is asking for legislative authority to expand its charter to create apprenticeship programs in several new industry sectors. The proposal lists the sectors under consideration: building trades, manufacturing and engineering, health care and behavioral health, education and early learning, information and communications technology, biotechnology and life sciences, creative economy, hospitality, and personal services. These are job sectors that currently do not require state certification for employment and have functioned without government oversight for decades without any problems or restrictions. More troubling is the fact that only two organizations would be able to offer the certification for the sectors: CITC, which took about 20 years to achieve certification status, and IBEW, which will certify workers only for union-operated

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shops. For an organization to become qualified to offer certifications, WSATC must approve the certification, and since WSATC is mostly made up of union members with a vested interest in keeping the certification process under union control, the qualification process is arduous and difficult to achieve. The high bar to entry discourages many organizations from attempting to gain certification status. The goal of IBEW is to expand union influence into new industry sectors that are currently non-unionized and limit job opportunities to union members only. Additionally, the certification of new business sectors will not be free. Each employer will have to pay for the training of employees. The training courses will be run by CITC and IBEW.

With tech giants like Microsoft and Amazon being headquartered in Washington state, the expansion of certification requirements to information and communications technology could create significant barriers to entry for new developers, operations engineers and technical program managers. Likewise, the hospitality sector, with a labor pool that has been hit particularly hard by the state’s pandemic lockdown mandates, could be handicapped further if an apprenticeship program for workers were implemented. Apprenticeship requirement expansion into new industry sectors is not required and should be explicitly excluded from any legislative authority held by L&I and the WSATC. The expansion is a brazen tax and authority grab by unionized organizations to control the private business sector and

to include and exclude workers seeking employment. It is an attempt to control the creation of jobs and where employees can work. ■ Mark Harmsworth is the Washington Policy Center’s Center for Small Business director. Mark Harmsworth was elected in 2014 to the Washington State House of Representatives, where he served two terms. His focus was on transportation and technology, including serving as the ranking member on the House Transportation Committee. Mark works in the technology industry and is an owner of a small business after completing a long career at Microsoft and Amazon.

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Tiffany Holden and Leo Cohen, the team behind the Building Bellingham podcast. Courtesy photo.

Building Bellingham podcast team aims to lift Whatcom business Local real estate team moonlights as podcast crew Tony Moceri “Passion.” That is the word that kept coming up during an interview with Leo Cohen and Tiffany Holden about their podcast, Building Bellingham. It’s not just that they love podcasts, and their passion is certainly not derived from desire for financial gain. It

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comes from wanting to pick up the Whatcom County business community. Cohen and Holden do what they do because they care about the people living and working here and want to see our community thrive. If there is any selfishness at play, it’s their desire to learn from the individuals on

the show. They also understand that a healthy business environment helps all companies. As businesspeople running the Cohen Group NW real estate team, they also stand to benefit, along with the rest of our local companies. “I love learning,” Cohen said, “and this is about as great of a platform we

can create where we’re able to lift the businesses up and able to learn in the process.” When the podcast began, Cohen didn’t know where it would go or what it would become, but he liked the idea of a local business podcast, so he ran with it. “As an entrepreneur, most of the time, it just comes from a simple intention and not really knowing what you don’t know,” he said. “I wanted to start a podcast because people in their 30s do podcasts.” Cohen had completed exactly one episode before Holden joined the Cohen Group NW team to help with marketing. Never having worked on a podcast, aside from in a college class at Western Washington University, Holden took it all in as she followed Cooper Hansley, the director of marketing, around. “We had an external producer and studio and all of that, so I had the privilege of spending seven episodes sitting on the floor at Binary Studios taking notes for blog posts that came out after each episode,” Holden said. Even though Holden still had to sit on the floor, she began to form a partnership with Cohen as the podcast started taking shape. Their combination of talents — Cohen as the visionary and interviewer and Holden as the organizer, editor and producer — has made the show what it is today. With help from Hansley, the two create a high-quality production highlighting Whatcom County’s businesspeople, doing it in a way that makes the guests shine. While the Building Bellingham team members have their imprints all over each episode to create consisten-

cy, this is done in a subtle way that goes unnoticed by the listener. This balancing act does not just happen. It is a commitment to quality, and a lot of hours, to make each episode a reality. Beginning with season two of the podcast, the producing and editing responsibility moved to Holden. The podcast is not monetized, but the team expends time and effort because of the intrinsic value derived from learning and knowing they are adding value to the community. “It feels incredibly gratifying to feel so connected to the small business community here in town,” Holden said, “and it’s a privilege to be alongside Leo and getting to know these folks on a very personal level when I’m sitting in the editing room. I mean, these shows take six to nine hours to edit from start to finish, so I

listen more closely than anybody else ever will. The lessons that these really amazing individuals are teaching us and the stories that they’re sharing resonate deeply.” Cohen adds: “How do we not get stressed out about it not paying the bills? It does pay the bills. It pays our mental bills.” While team members love producing Building Bellingham and feel they get value from it, there is no doubt that it does pull resources from the operations of the real estate business. As every entrepreneur knows, there are never enough hours in the day, so adding to the list is not easy. “Every time I hit hour five in the editing room, I’m like, why the heck are we doing this,” Holden said. “But we have never questioned the existence of the show.”

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To balance this, Holden and Cohen have put systems in place to operate as efficiently as possible, and they only record the show spring through fall, taking the summer months off when real estate is busiest. Currently, in the midst of their third season, Cohen and Holden have become partners in the Building Bellingham podcast. While it is still more of a passion project than a business, they don’t treat it as such. What started on the whim of a young entrepreneur has become a well-oiled machine. Each season and episode is scheduled and planned out to make the process as smooth as possible for the team, the guest and, ultimately, the listener. With the goal of shining a light on these people and their businesses, Cohen and Holden begin by releasing

BUSINESSPULSE.COM | MAY/JUN 2022

a promo video the week before, highlighting the next guest. Shows are now recorded in their own studio, where they have set up a relaxed environment that makes the guest comfortable while Cohen delivers his line of questioning. Questions are intentionally not given to guests ahead of time. The team likes the feel of natural conversation as guests think on the fly. While Holden and Cohen do prepare questions, Cohen, with his fluid interview style, uses the questions more as a guide than a fixed plan. As a longtime local business owner, and having personally been a guest on the podcast (season three, episode seven), I had a firsthand experience of the process. From the moment Cohen asked me to be on through the release of the episode, every step was orga-

nized and professional. I was always aware of what they needed from me, and the schedule never changed. With his interviewing skills, Cohen was able to keep me focused on the topic at hand — no easy task — and Holden seamed together an episode that sounds much better, I’m sure, than it did live. They are intentional about having on established businesspeople, many of whom are well known in the community. The list of previous guests includes Erin Baker from Erin Baker’s Wholesome Baked Goods, Wes Herman from Woods Coffee, Anne-Marie Faiola from Bramble Berry Handcraft Provisions, and Ty McClellan from Hardware Sales, to name a few. They have chosen people based on their experience and ability to share stories and insight to help others be successful as they become entrepreneurs. Understanding that this platform can help promote businesses, they have begun a “startup spotlight” to shine a light on local businesses just getting rolling. While Building Bellingham has seen success in its first three seasons, Cohen and Holden hope this is just the beginning. “We have all these ideas that we are refining on how we can use this to be able to leverage it into more value that we can create for our listeners and other business owners in the community, whether they’re new, seasoned vets, in the middle of their career or students looking for a way to be able to stay in Bellingham,” Cohen said. The Building Bellingham podcast can be found wherever you get your podcasts. You also can find it at www. livebellinghamnow.com/building_ bellingham.

AGRICULTURE POLICY BP

The flood had a large impact on our whole community, but how our leaders respond to the twin problems of water management may well impact the state of agriculture in Whatcom County forever. PHOTO: iStockphoto.com/Bargais

Deluge highlights twin troubles in Whatcom County What the 2021 flood means for the future of farming Fred Likkel It’s no longer in the news, but the hundreds of families directly impacted by the flood are still working on putting their lives back together. One farm employee lost his life. Two thousand homes were damaged or destroyed. On this side of the border alone, $100 million or more in property damage occurred; the damage in Abbotsford was over $1 billion, and hundreds of thousands of farm animals were lost.

The future of farming in Whatcom County may well depend on how our local, state, tribal and federal leaders respond to this flood. As with most serious crises, there are opportunities as well as grave risks. The devastating flood has generated a much higher level of awareness in our community and among our government leaders of the Nooksack River’s water management problems. While most attention is focused on the flood, there is a growing awareness that our river has twin problems of equal severity. In September 2021, 2,500 salm-

on headed upriver to spawn. These spawners were badly needed — but they died because of low flow in the river, an important issue for three decades. Fish protection and recovery depends on protecting the flow and even improving it. Despite the harmful low flow, within two months, the river flooded, leaving fish swimming in farm fields, destroying the river structure needed by fish, and causing great damage to our community and families. Experts on climate change predicted the low flow and also the flooding. Hot, dry summers followed by too

MAY/JUN 2022 | BUSINESSPULSE.COM

much rain and early snowmelt are likely to increase. As a Washington State University engineering professor commented, these conditions make storing river water more necessary than ever. Nearly all river systems in the state similar to the Nooksack have storage capacities. Without the storage that’s already on the Skagit River, Mount Vernon and much of the community would have been inundated. The storage also helps fish, as water is released when fish are ready to spawn, and that signals them to enter the river. The excess water captured in the winter is released, maintaining adequate flows for fish. Low flows affect farms, too. Even though most irrigation water is taken

from wells instead of streams, a proposed water rights adjudication could lead to farms and other water users having their water usage curtailed or eliminated. This would do virtually nothing to increase flow and would greatly harm fish recovery as farmland is urbanized. Other water management solutions are being proposed, but only storage — through natural or artificial means — provides the most promise for solving these water management issues. What stands in the way of this solution? It will take a combined strong effort by our local governments, tribal leaders, state leaders and federal government to solve the twin problems. Gov. Inslee announced an initiative

to work with the British Columbia premier on solutions. But there are voices with much narrower interests that often have an outsized impact on these leaders. The community as a whole must decide whether solving these twin problems is a priority and whether farming is to be preserved. There is no question that community involvement is the crucial difference when difficult political decisions need to be made. Fred Likkel is the executive director at Whatcom Family Farmers. WFF is a farm advocacy group that focuses not only on education of the public regarding the good work of our farmers but also advocacy for all in the agriculture industry.

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POLICY OP-ED BP

Experts spot under-the-radar issues from legislative session Brett Davis Budget and transportation issues garnered the lion’s share of coverage during this year’s session of the Washington State Legislature, as did failed attempts at reforming the governor’s emergency powers. But they weren’t the only challenges faced by lawmakers during this year’s 60-day legislative session that concluded March 10. That was obvious based on what public policy experts had to say in response to The Center Square asking for a post-mortem on the session. Andrew Villeneuve, founder and executive director of the Northwest

Progressive Institute, praised the legislature passing fiscal impact disclosure legislation for statewide initiatives. House Bill 1876, which Gov. Jay Inslee has since signed into law, makes any ballot initiative that would impact taxes or fees or “cause a net change in state revenue” include language that tells voters the specific fiscal effects the measure would have. “We are very close to ensuring that the next time voters consider a statewide initiative that would affect the state’s finances, they’ll see language on their ballots advising them of the fiscal impacts, just as they would today for a

local proposition such as a school levy,” Villeneuve said in an email. “It makes no sense that local propositions give voters more context about their impacts than statewide ballot measures do.” Elizabeth Hovde, director of the Center for Health Care and Center for Worker Rights at the free market Washington Policy Center, addressed legislation related to health care. She was critical of the Legislature passing Senate Bill 5532 — also signed into law by Inslee — establishing a five-member prescription drug affordability board charged with

MAY/JUN 2022 | BUSINESSPULSE.COM

reviewing drug prices. It is also tasked with creating upper payment limits for prescription drugs the board has concluded will lead to excess costs. The board is to issue its first report by June 2023. “We now have a governor-appointed board that could deter drug manufacturers from selling life-saving drugs in our state,” Hovde said via email. “That’s concerning. Also, transparency legislation hadn’t been realized when this passed the Senate, and the board could be able to give penalties to the wrong players. Drug manufacturers don’t set the final prices on their drugs. There are many layers.” Hovde expressed relief at House

Bill 1868 not passing during session. “A bill that would mandate working conditions in hospitals, rather than address a state and national nursing shortage, thankfully died in committee,” she said. HB 1868 would have created minimum staffing levels in hospitals, mandated meal and rest breaks, and provided penalties for hospitals that ignore the new rules. “It could have resulted in decreased service levels, especially for patients in rural hospitals,” Hovde said. “And it called nurse judgment and professionalism into question.” Pam Lewison, director for the Washington Policy Center’s Initiative

on Agriculture, lamented that House Bill 1750 did not pass the Legislature this year. “HB 1750 would have allowed agricultural employers to declare 12 weeks of harvest time exempt from overtime rules and would give them 55 hours a week before overtime pay is required,” Lewison explained in an email. The bill did not receive a hearing. “The bill would have given farmworkers much-needed income back as overtime rules roll forward in the next few years,” she said. Brett Davis reports on Washington state government for The Center Square, a newswire that keeps taxpayer concerns top of mind. www.thecentersquare.com/washington/.

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Personally speaking with Bill Elfo Whatcom County Sheriff discusses crime surge, injured deputies Hilary Parker Sheriff Bill Elfo has led the Whatcom County Sheriff ’s Office for nearly 20 years, beginning in 2003 when stepped in as interim sheriff. He was elected to office later that same year and is now serving his fifth term. He started his law enforcement career in Florida and came to Whatcom County in 1996 as director of the Blaine Department of Public Safety. In his 48-year career in law enforcement, Elfo says he has never seen anything like the lawlessness the county has been experiencing over the past several months. He cites some of the recent criminal justice reforms as one

cause, but the reforms make up only part of the challenges law enforcement faces today. Here, he addresses some of those challenges and provides guidance for business owners and operators. Q: Criminal activity seems to be on the rise. What’s going on? A: I think everybody has experienced it, in the unincorporated areas and in the cities, particularly the business community. I’ve heard from business owners who’ve called me regarding people getting out of jail too soon or not being held in jail for shoplifting offenses. They’re noticing more pro-

foundly mentally ill people out on the streets and people using drugs. Some of them are dangerous, and some of them engage in criminal activity, and we’re also seeing a skyrocketing crime rate. Criminals have free reign. Mentally ill people have free reign. It’s really causing our society to be immersed in chaos and lawlessness. It’s far less safe than it was just a few years ago. I speak to a lot of groups and a lot of individuals, and people of all persuasions are really starting to notice this issue. I’m not a sociologist, and I can’t tell you everything that causes crime, but

MAY/JUN 2022 | BUSINESSPULSE.COM

I did look at laws that went into effect (last July) — the so-called reform of the police and narcotic-related laws. We did a sampling six months before they took effect and six months after: Felony assaults are up 54%; burglaries are up almost 71%; vehicle prowls are up almost 74%. Vehicle thefts are up an astounding almost 116%. Other categories are up as well, such as arson and homicide, but those numbers are too small to make a meaningful comparison. Q: How does space at the jail figure into this issue? A: We’re seeing the same people in jail over and over again. Part of the reason is the jail lacks the capacity to hold people, and we’re experiencing serious infrastructure problems. This is not a new issue but has persisted for decades and is now at a crisis point. COVID requirements for social distancing further limit space. The courts closed due to COVID, so a lot of people are backed up waiting for their cases to go to trial and be resolved, and we’re having increases in the jail population due to that. For people who need determinations of their competency (to stand trial), that process is taking months, if not years, to get the evaluations completed. We have one case we’ve finally resolved; he’s been sitting in jail since December 2018.We have very limited space, and what we need to do, from my perspective, is resolve this jail issue as quickly as possible. Not only do we not have sufficient space to keep people off the streets, as we’re legally required, but we’re also not serving arrest warrants for a lot of property crime because we

BUSINESSPULSE.COM | MAY/JUN 2022

Felony assaults are up 54%; burglaries are up almost 71%; vehicle prowls are up almost 74%. Vehicle thefts are up an astounding almost 116%. — Sheriff Bill Elfo

have no space to put them.There are people concerned about mass incarceration — a legitimate concern — but I don’t think we have mass incarceration here. We have an obligation to operate the jail in a safe, constitutional and humane manner.

even if we have probable cause, if they flee, we can’t pursue; they’re free to go. If they’re driving a stolen car, we are not allowed to pursue them. Vehicle pursuits are an ultra-dangerous activity, and we take it very seriously. We have sound policies in place. We train all officers in vehicle pursuits and we train them in alternatives to pursuit and pursuit intervention. What the legislature did, they precluded us from engaging in pursuits unless we have probable cause. That’s a higher level of proof than reasonable suspicion.

Q: The state’s drug possession law also changed last year. What has been the outcome of that change? A: In February of last year, the (Washington) Supreme Court declared all drug possession laws unconstitutional because the word “knowingly” Q: One of the legislative reforms didn’t describe possession, overturnmade last year involved the ability to ing their original ruling in 1958 that stop and/or pursue individuals suspect- “knowing” wasn’t a requirement. The ed of criminal activity. Can you update Legislature addressed this decision by us on that legislation? changing all the drug possession laws A: I think this legislation, even from felonies to misdemeanors, adding though there’s been some modifica- that we can’t arrest individuals unless tions to it, has really hamstrung law we give them at least two referrals to enforcement and our ability to prevent treatment. And they didn’t provide crime, investigate crime and capture adequate and meaningful options for criminals. They eliminated Terry stops providing treatment. What we do now — our ability to stop people reasonably is give people a phone number they suspected of committing a crime for a can call to get on a waiting list for brief interview to determine if crimi- treatment. It’s really sad. Previously, we nal activity is afoot. We were the only would find people who were exposed state in the country where that was to opiates or fentanyl, and we could get eliminated, and that’s tying officers’ them into jail, and they’d get medical hands unless they have probable cause screening and medical intervention if to arrest someone. That issue has been necessary and, in some cases, prevent somewhat fixed, but not completely, in them from dying. We’d offer programs the last legislative session. at the jail, medically assisted treatment, If someone breaks into your home, programs through the county, drug

court. That doesn’t work anymore. We leave them on the street. We can’t book them because of the restrictions in the law and the lack of jail space. That’s a law the Legislature wouldn’t revisit last year, so it remains the status quo. Q: After high-profile cases from around the country, policing has been under a microscope. What’s your take on this? A: I listened to a lot of the testimony on the police legislation (this legislative session). They try to take issues from other parts of the country and extrapolate them to be high-frequency problems here in Washington state. They try to take those issues and bring them home. All the reformers were talking about George Floyd, but that didn’t happen here; that happened two time zones away.

issues with use of excessive force here in Whatcom County. There are other issues. We see people let go from one agency and hired by another, after misconduct, and that leaves you scratching your head as to how that happens. I have no problem decertifying officers who engage in serious misconduct or have demonstrated lack of ability to do the job.

If someone breaks into your home, even if we have probable cause, if they flee, we can’t pursue; they’re free to go. If they’re driving a stolen car, we are not allowed to pursue them. — Sheriff Bill Elfo

There are departments around the state that I would say have not made the best hiring decisions. If we in the Sheriff ’s Office have any doubt as to an officer’s character, integrity or ability to do the job, we end up not hiring them or releasing them after their probationary period. We’ve not had a lot of

Q: How else does reform legislation affect officers and agencies? A: The laws have increased the civil and criminal liability for law enforcement officers, and it makes them less proactive, I think. They don’t always feel like they have the support they need, or the resources. We have three deputies who have left to work in law enforcement in other states. People are looking be-

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cause they want to do the job, but they don’t feel they can do it here — and that’s at agencies across the state. People are seeing more exposure to unfair criticism and some of the vile rhetoric against law enforcement. We’re finding less and less qualified people seeking positions in law enforcement; departments around the state are not fully staffed, including in Bellingham. It takes a long time for us to hire someone. We are mandated by the state to send people to the academy for almost five months, and then they have a 12-week training program here. If we have somebody leave, it takes time to onboard someone new unless they already have the training and they have the experience — and we’re competing with places like Everett that have $30,000 signing bo-

BUSINESSPULSE.COM | MAY/JUN 2022

nuses for experienced officers. Q: Any words of wisdom for business owners and operators? A: They need to have a serious plan to deal with criminal activity. Each has needs, depending on their business and the geographic location they’re in, whether they’re in a remote area in the county or they’re in downtown Bellingham. Additionally, I encourage businesses that are victims of crimes to make prompt reports to law enforcement. Even though it may seem fruitless because the people are out the next day or not apprehended, it’s important that the public and elected officials know the true extent of the problem we’re experiencing.

Q: Finally, how are deputies Thompson and Rathbun faring after having both been shot while responding to a call in Peaceful Valley in February? A: We’re praying they can come back to work. They’re both excellent deputies. We’re proud of their performance. We’re proud of the citizens who helped them survive that day, providing them cover so they could get to a safer location. These deputies, despite both being shot in the face, chose not to self-evacuate. They stayed on the scene until they were relieved because they didn’t want to leave the citizens out there. We’re just very thankful they survived, and we’re optimistic that they’ll be able to get back to work. All kinds of support was clearly demonstrated from the entire community, and we’re heartened by everyone’s concern.

Advocacy. Leadership. Vibrant Economy. Networking. Committed to Business Success. Research. Education. Non-partisan. Community Prosperity. Join Us.

Facilitating Business Success and Community Prosperity. The Whatcom Business Alliance is the ears, eyes, and voice for the Whatcom County business community. We believe success is the single largest driver of community prosperity, which is why we focus our efforts on facilitating that success through advocacy, research and education and job opportunities. We bring business leaders together to encourage, acknowledge and share the best and most ethical business practices. Our members improve their respective businesses and work closely with community leaders to promote public policy that supports a healthy business climate and a vibrant economy. To learn more and become a member, visit whatcombusinessalliance.com/joinus or call Barbara Chase at 360.543.5637.

BUSINESSPULSE.COM | MAY/JUN 2022

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YES Whatcom was created in 2018 to raise awareness of career options, hands-on learning experiences, paid internships and apprenticeship programs that are available in Whatcom County. Our goal: To connect youth with living wage careers while contributing to the local economy in positive ways.

To sign up go to www.whatcombusinessalliance.com

BUSINESSPULSE.COM | MAY/JUN 2022

POLICY OP-ED BP

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What went right and wrong this legislative session Attempts to fix past mistakes don’t go far enough The 2022 legislative session adjourned in March with a mixed bag that included menial public safety reforms, unsustainable state government spending, no tax relief and homelessness policies that at best scratch the surface of the problem. Public safety The session began with citizens and law enforcement imploring lawmakers to fix a “police reform” law that effectively defanged police responses to actual or suspected criminal activity. Senate Minority Leader John Braun described the results this session as “improvements but not complete fixes. We didn’t get everything.” The bills that did pass this session included House Bill 1735, which expands and clarifies a police officer’s use of force, and HB 2037, which restored most of an officer’s ability to pursue suspects based on “reasonable” suspicion rather than “probable cause.” A bill that would have allowed officers to engage in vehicular pursuits failed to clear the

Legislature, despite it having passed in both chambers, due to hostility from key ranking legislators. In fact, a vocal and active anti-police presence within the majority party made it tremendously difficult to get the bills that did pass enacted, and without the language being watered down. “It was a fight at every stage,” Sen. Braun said. Those same legislators who brought us the anti-police bills in 2021 that are having a negative impact on public safety then sponsored bills that would have severely undermined public safety throughout Washington. Thankfully, some of them didn’t pass — due to pressure from such groups as Change Washington — including a proposal to reduce sentences for murderers who kill via drive-by shootings. However, they almost passed a bill sponsored by Sen. Manka Dhingra that would have allowed murderers, rapists and sex offenders sentenced to life in prison — such as Gary Ridgeway, the Green River Killer — the ability to petition for parole. Under that bill, the presumption was

MAY/JUN 2022 | BUSINESSPULSE.COM

that the criminal should be paroled unless proven otherwise. Meanwhile, Gov. Inlsee and the majority in the Legislature ignored bills that would have helped both residents and small businesses via such actions as: • strengthening the definition of theft to help retailers crack down on in-store larceny; • increasing funding to hire and train more law enforcement officers; and • enacting harsher sentences for catalytic converter thefts. Although some fixes were made to public safety, much more work is needed. Based on the effort necessary to pass what little was accomplished this year and the opposition from key ranking legislators, it’s clear that a shakeup is needed in Olympia. Government spending In 2013, the median income in Washington state was $64,203. By 2021, it had increased by 20% to $76,687. Compare that to the state’s operating budget. In 2013-15, it was $33.9 billion. With the passage of the 2022 supplemental budget, spending is now a whopping $64 billion per biennium. That’s an 89% increase in state spending in less than a decade. If you’re the typical Washington resident, your salary is not almost double what it was a decade ago. When you’ve wanted to buy things you want, you’ve

BUSINESSPULSE.COM | MAY/JUN 2022

had to exercise fiscal restraint by not spending beyond your means. This is especially true of people living off of pensions or fixed incomes. The state’s eye-popping spending spree has relied on a combination

of new tax revenue from our state’s economic prosperity — even during COVID-19 — and increased taxes, with much of that money being invested in a K-12 system that now eats up half the budget. However, student academic performance has only worsened since 2013. In other words, the increased tax burden and unprecedented spending has not only failed but resulted in decreased quality within public education. The Legislature should learn from this experience: You don’t solve a problem simply by throwing more money at it. What’s worse is that the 2022 supplement budget includes a $5 billion spending increase with no meaningful tax cuts, despite an astounding $15 billion in surplus revenue expected over the next four years. Senate Bill 5932 would have reduced the state sales tax by one percentage point, from 6.5% to 5.5%. However, the Legislature rejected it. As Jason Mercier at the Washington Policy Center has noted, the

last time the Legislature reduced the sales tax was 1982 — 40 years ago. Meanwhile, the state anticipates “personal income growth will be weak this year as the extraordinary stimulus of the last two years is withdrawn.” At a time of record-high inflation, increased costs of basic commodities, and several years of economic uncertainty, Washington residents deserve tax relief now more than ever. Homelessness Prior to the legislative session, Gov. Inslee proposed $800 million in spending on homelessness, including the creation of a new Office of Intergovernmental Coordination on Public Right-of-Way Homeless Encampments. Though the Senate approved the new office creation, the plan failed to clear the House. However, legislators voted in favor of spending $500 million in the capital budget for housing and shelters and $200 million in the supplemental budget for outreach services. The legislature also enacted HB 1866, which establishes a new state program to provide permanent housing and services support for homeless people who qualify. Before the state spends even more taxpayer money addressing homelessness, it needs to acknowledge the role mental illness and substance addiction play. Simply giving the homeless housing, temporary or not, won’t fix

what got them on the street in the first place. Earlier this month, a homeless man died of a drug overdose in a Seattle tiny village operated by a nonprofit program that allows drug use within the village. Seattle radio host Jason Rantz argues that “this program, along with state laws that made it nearly impossible for parents to get their

teens treated for addiction, helped lead to Jeremy’s early death.” We don’t need more spending but rather better spending on services that attack the root causes of homelessness in our state. We also need the elimination or revision of any laws that prevent appropriate treatment for the mentally ill or addicts. Lawmakers will never fix the homelessness crisis 1S

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if they continue to merely bail water from a leaky ship. ChangeWA is a non-partisan 501(c)(4) organization focused on advancing common sense governance built around public safety, government accountability and good governance throughout Washington state. ChangeWA is focused on livability and accountability across the Evergreen State by holding local and statewide public officials accountable. www.changewashington.org/.

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MAY/JUN 2022 | BUSINESSPULSE.COM

BP EMPLOYEE OF THE YEAR

The right leader at the right time bp’s Patsy Williams honored for guiding refinery through COVID-19 Tony Moceri

BUSINESSPULSE.COM | MAY/JUN 2022

When business leaders add to their team, they hope they have found people who fit well with company culture and are reliable and good at their jobs. A positive impact on the community is a bonus. When bp Cherry Point Refinery hired Patsy Williams, it brought in someone who checked all those boxes and then some. That is why she was nominated for the first-ever Jon B. Strong Employee of the Year Award as part of the Whatcom Business Awards held in March. Williams is the crisis and continuity manager for the refinery. Having taken that role three years ago, she entered right as crisis was beginning to take hold. That was good fortune for everyone around her. “Patsy was the right leader at the right time,” said Tom Wolf, bp’s senior director of government affairs. “When COVID-19 came to Whatcom County, Patsy was embedded in the county’s emergency response to the pandemic.” In November 2021, with the COVID-19 pandemic still lingering, Whatcom County was hit with historic flooding. With the most significant impact being felt by those around Nooksack and Sumas, that’s where Williams went to help. By coordinating the hundreds of community members who showed up to help those in need, Williams was able to lean into her experience and training to maximize the impact the volunteers could have on those in need.

While the historic weather event was devastating, bp and Whatcom County were fortunate to have an individual to help fight back. “Patsy is a force of nature,” said Pam Brady, bp’s government affairs manager. “She has a natural ability to inspire confidence in her team and those around her. She thinks big and helps others achieve their goals.” While it takes the right personality and natural ability to lead in a time of crisis, being able to do so doesn’t just happen. Before entering her current role, Williams had approximately 20 years of experience in crisis incident and emergency response management.

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These years of experience, and a dedication to improvement, have made Williams a versatile team member whose expertise extends to many aspects of bp’s business. She acts as an expert in emergency response and is an industrial fire training instructor, oil spill response instructor and rope rescue technician. She also trains others in the incident command system and serves as the planning section chief. As a certified project manager, Williams uses the knowledge she has obtained to execute her wide range of responsibilities. However, it’s often not what she does, but how, that has the most impact. “It’s obvious that people are No. 1 to

Patsy, and her first instinct is to make sure people are taken care of,” said Eric Zimpfer, bp’s refinery manager. “She is an inclusive leader who continually strives to help her team be the best version of themselves.” Whether leading the effort to feed more than 300 Whatcom County residents at a Thanksgiving dinner after the flooding or working directly with displaced individuals attempting to figure out housing, Williams has displayed her passion for serving others. To hear them tell it, her coworkers at bp feel fortunate to work with an individual who can operate so expertly and effectively in a time of crisis.

if you believe business success is essential to community prosperity.

Individual memberships now just $100/yr!

To join, email barbara@whatcombusinessalliance.com or visit whatcombusinessalliance.com/jointhealliance

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35th ANNUAL

whatcom

BUSINESS AWARDS

MARCH 24, 2022

WINNERS & HIGHLIGHTS LIFETIME ACHIEVEMENT GARY HONCOOP R O O S E N DA A L- H O N CO O P CO N S T R U C T I O N

BUSINESS PERSON OF THE YEAR J O H N H U N T L E Y, M I L L S E L E C T R I C

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SMALL BUSINESS OF THE YEAR VA N B E E K D R Y WA L L

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BUSINESSPULSE.COM | MAY/JUN 2022

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From left to right: Flood damage, work in progress, finished repair work. Courtesy photos.

WRS repairs rail line extensively damaged by November flood An international rail line is back in service after three months of repair work and cleanup in Sumas necessitated by November’s catastrophic flooding. Ferndale-based Western Refinery Services performed much of the work as a subcontractor for Jammie’s Environmental of Longview, the main contractor for rail line owner BNSF. “The flood washed out the bridge over Johnson Creek, damaging 1,225 feet of the main line and spur lines totaling 4,650 feet of track were affected,” said Bill VanZanten, COO of WRS. “It was a complex project that needed to be done quickly because the damage stopped cross-border rail traffic there, making trains use other routes that took longer and added congestion.” WRS began working Nov. 28 on general debris cleanup as flood waters were receding and completed the project Feb. 28. Its efforts included working with Jammie’s Envi-

BUSINESSPULSE.COM | MAY/JUN 2022

ronmental on the righting of 15 tipped-over rail cars averaging 200,000 pounds apiece. WRS also hauled in more than 10,000 tons of rock to rebuild the line’s subgrade and finish grade in order for BNSF to install new rail, VanZanten said. The damage stretched from Garfield Street south through a crossing at West Third Street to the Johnson Creek rail bridge. The damage was located just west of the El Nopal Mexican Restaurant. Locally owned WRS, founded in 1982, has more than 230 employees working in local refineries and in the heavy civil construction sector. The company specializes in civil construction, concrete construction, industrial maintenance, asphalt paving and sealcoating, land-leveling and scraping, UAV mapping and inspection, technology and design services, demolition and processing, landscaping, and transportation.

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First Fed Welcomes Chris Neros as Our New Chief Lending Officer | EVP Christopher “Chris” Neros has joined First Fed as Executive Vice President and Chief Lending Officer. “Chris is a well-respected leader with a successful track record of business development, relationship management, and team leadership. He will bring valuable experience and strategic direction to our lending initiatives,” said Matt Deines, President and CEO of First Fed Bank and FNWB. “First Fed is on an exciting growth trajectory, anchored by a 100-year legacy of outstanding service. I look forward to strengthening our business relationships by collaborating with our team, our partners, and our customers on business opportunities,” said Neros.

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Prior to joining First Fed, Neros held leadership roles for over 15 years at Peoples Bank in Bellingham, WA. As Chief Lending Officer at Peoples, Neros oversaw bank-wide lending strategy of all commercial and marine lending activities. He was formerly a member of the loan committee for Northwest Business Development Association and a volunteer Kenpo instructor. Prior to moving to Washington, Neros gained 10 years of lending and retail banking experience at First National Bank Alaska. While in Sitka, he was active in the community as a Board Member for the Sitka Economic Development Association, Center for Community, and Sitka Tribal Enterprises. Neros earned a BBA in Marketing from the University of Alaska Anchorage, an MBA from Regis University in Colorado, and is a graduate of Pacific Coast Banking School.

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Business Pulse magazine May | June 2022

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MT. BAKER VISION CLINIC EYES GROWTH OPPORTUNITIES

WHAT RECRUITING TAKES

PERSONALLY SPEAKING

MAKING THE SHIFT AWAY FROM FOSSIL FUELS

PODCAST TEAM LIFTS SMALL BUSINESSES

GIVING A LEG UP TO THOSE WITH DISABILITIES