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April 2011 Vol. 24 No. 4

The Voice of Kitsap Business since 1988

Blazing A New Trail Poulsbo radiology practice uses cuttingedge technology unique to Puget Sound By Rodika Tollefson It’s fairly common for Kitsap Peninsula residents to drive across the Tacoma Narrows Bridge or take the ferry across the water for medical services — even though in many cases they are available locally — but one Kitsap practice is seeing the reverse commute. Poulsbo-based InHealth Imaging (www.inhealthimaging.com) has been popular with the Seattle crowd recently, thanks to its cutting-edge thyroid-cancer screening. Dr. Manfred Henne, the founder and managing member at the independent practice, began offering a new type of fine needle aspiration (FNA) analysis for thyroid nodule assessment about two months ago. Henne was the first radiologist in Western Washington to offer the Afirma thyroid FNA test, in partnership with San Francisco-based research company Veracyte. Fine needle aspirations are performed on thyroid nodules (lumps) in order to obtain biopsy samples. When the results come back as indeterminate, a second Cover Story, page 6 $1.50 Display until May 1st

Dr. Manfred Henne, founder, InHealth Imaging

Inside

Human Resources, pg 13

Special Reports:

Financial, pp 14-16

Healthcare Quarterly, pp 6-11

Technology, pg 18

Annual Auto Review, pp 28-35

Editorial, pp 36-38

Real Estate, pp 23-25

Port Orchard Chamber, pg 26 Home Builders Newsletter, pp 19-22


Stiller joins Olympic Northwest Insurance

2 Kitsap Peninsula Business Journal•KPBJ.com April 2011

Olympic Northwest Insurance recently welcomed Kristen Stiller, a commercial insurance agent, to its team. She has been in commercial insurance since 2003 and has spent more than half her career as a wholesale or MGA agent. In 2009, she switched to the retail agency side and has brought with her the understanding of what underwriters look for in their submissions for fast responses. Stiller can be reached at (360) 337-0114 or kstiller@olynorthwest.com.

Martin to oversee NM Chamber sales and marketing The North Mason Chamber of Commerce announced the recent appointment of Jim Lee Martin as its regional sales and marketing representative. Martin will be responsible for all elements of sales and marketing, serve as staff support to the Ambassador Committee, as well as oversee the Chamber’s online marketing opportunities, including web services. “Throughout his celebrated career, Jim has been recognized for exceptional sales and marketing performance with chamber entities throughout Washington and Oregon,” noted North Mason Chamber of Commerce President/CEO Mark W. Costa. “His consistent record of sales excellence coupled with his total understanding of membership retention brings a fresh and tenacious energy to this position. Jim has an aptitude for bridge building and he is a stellar addition to our executive team. He will no doubt play a pivotal role in our future success as we approach the 500 membership threshold.”

Kitsap Bank promotes three to Ops Manager Kitsap Bank has announced the promotion of three individuals to the position of operations manager at its Poulsbo, Silverdale, and South Park Village branches. Marilou Aganon Marilu Aganon, who will move into that position in Poulsbo, has been with Kitsap Bank for 12 years, serving the organization in a variety of roles with increasing responsibilities. Educateda at Centro Michelle Moyer Escolar University in the Phillipines, Aganon holds a Bachelor of Science degree in Business Administration with a concentration in Accounting. She is also a past recipient of Kitsap Valorie Kroke Bank’s Employee of the Quarter award, and is active in Soroptomists International and the Poulsbo Chamber of Commerce. Michelle Moyer will step into the operations manager slot at the bank’s Silverdale rranch. Moyer has been in banking for seven years, three with Kitsap Bank. A nearly life-long resident of Kitsap County, she stays connected to her community through volunteer activities. She is an active member of the Silverdale Chamber of Commerce, currently serving as Secretary on their Board of Directors. Valorie Kroke moves into the operations manager position at the South Park Village Branch in Port Orchard. Kroke is a longtime resident of the area, and has been in banking for 29 years. She joined Kitsap Bank in 2007.

Skifstad earns AAMS professional designation Jason Skifstad of the financial services firm Edward Jones in Silverdale has earned the Accredited Asset Management Specialist (AAMS) professional designation. Skifstad successfully completed the AAMS, professional education program from the Denver-based College for Financial Planning. Those who complete the program, pass a final exam and sign a code of ethics and disclosure form earn the AAMS designation. This advanced training offers investment professionals the hands-on information needed to provide comprehensive financial services. Study topics include understanding the asset management process to understanding asset allocation and strategies.


Notus Notebooks open for business on Bainbridge Island

Chef Matsuno named 2011 ProStart Mentor of the Year

Notus Notebooks, is a new business venture, a spinoff of Fetraco Corporation of Bainbridge Island. Owner Ricardo Fleischfresser, business/sales manager Mark Lovejoy and all the employees are longtime Bainbridge residents who feel that the area could benefit from a local technology source that would be personal, responsive & very competitively priced. Fleischfresser has been in the notebook computer business since 1989 and since 2000 Fetraco has been the exclusive Latin American manufacturer’s rep for Compal Electronics. Over the past 10 years Fetraco has sold Compal notebooks throughout Latin America from Mexico to Argentina. Compal produces machines for Hewlett Packard, Dell, Acer, Lenovo and others. Working directly with the manufacturer Notus has eliminated the middlemen resulting in substantial savings to its customers. For more information, visit the offices at 345 Knecktel Way NE on Bainbridge Island or on the website at www.notusnotebooks.com.

Chef Grant Matsuno of Amy’s On The Bay Restaurant & Bar in Port Orchard has been named the 2011 ProStart Mentor of the Year at the 11th Annual Boyd Coffee ProStart Invitational. This annual high school culinary competition is facilitated by the Washington Restaurant Association Education Foundation. ProStart blends classroom learning with mentored work experience to help high school students learn management and culinary skills needed for a career in the restaurant and foodservice industry. Mentors provide overall support for student goals, career competence and character development. In addition, they help students make the connection between their current level of performance and their future.

CBC Chocolates announces big changes The former Chocolate Shop has been remodeled into a spacious wine bar specializing in dessert service. CBC artisan chocolates along with a varied selection of desserts and light fare will be offered. A varied selection of wines for all palates as well as featured micro brews will be served. Caffe Umbria will continue to be the coffee of choice for the full Espresso service. Hours will be expanded as well to meet the needs of those looking for a cup of coffee, a special chocolate treat or a place to gather with friends. There will be plenty of seating for customers to enjoy. In order to better define the offerings the expanded shop will take on a new name: ChocMo, More than just Chocolate, at 19880 7th Ave NE, Suite 102 in Poulsbo.

Waterfront CPA Group hosting 5th annual ShredFest Waterfront CPA Group of Silverdale is offering a safe, “green” way to dispose of old tax returns and sensitive documents at its fifth annual ShredFest in Silverdale on April 9 in the parking lot of the Land Title building located at 9657 Levin Road. On site shredding of personal documents will be provided by All Shred of Bremerton, by the company’s mobile unit and a “certificate of destruction” will be issued. The first 20 pounds are free with additional shredding at $.25 per pound. In an effort to further lower its carbon footprint, All Shred then uses the resulting paper shred in a special composting process, and produces its own unique mix of compost for local gardeners. For additional information and a free guideline on “What to Save and What to Shred,” contact the Waterfront CPA Group in Silverdale at (360) 692-9000.

Under Matsuno’s direction, Amy’s on the Bay has been an avid supporter of the program, giving ProStart students hands-on experience by helping staff benefit fundraising events the restaurant has hosted, including the annual Tip A Cop breakfast, and most recently, a wine auction and dinner for the Boys and Girls Club. To learn more about the ProStart Program or see how to become a mentor, visit www.weareprostart.org. For more information on Amy’s on the Bay, visit www.amysonthebay.com.

2009/2010 Kitsap County Business Startups

Vidaurri becomes consultant with Tastefully Simple Alisha Vidaurri of Silverdale has become an independent consultant with Tastefully Simple Inc., a national direct sales company featuring easy-to-prepare foods. As an independent business owner, Vidaurri offers food samples at home taste-testing parties, along with easy ideas for everyday meals, recipes, serving suggestions and fun. All of Tastefully Simple’s products are open-and-enjoy or can be prepared by adding only one or two ingredients. For more information about Tastefully Simple products, taste-testing parties or starting your own Tastefully Simple business, contact Vidaurri at AlishaVidaurri@yahoo.com.

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Bremerton Chamber rolls out new and improved Web site The Bremerton Area Chamber of Commerce has launched its new and improved Web site that enhances its mission to promote and help Chamber members. The site will still contain information about Bremerton and Kitsap County to help visitors in choosing the Kitsap Peninsula as a great vacation destination. The site also has a more focused and detailed section on the Armed Forces Festival held during May. The newest addition is the Members Only section. This section allows members to provide information about their businesses, such as location, times of operation, sales and promotions and much more. To access this area the member must create a User ID and password. The site was developed by Robin and Bob Park of Hollywood Webs.

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Navy Federal Credit Union and the WSU Small Business Development Center are offering a free workshop designed to help business owners work more successfully with commercial lenders to get financing. A Small Business Administration official will explain SBA rules. Erin Sorensen of Navy Federal will discuss what bankers look for and Elaine Jones of the WSU SBDC will cover how to put a loan package together.  The workshop is scheduled from 11:30 a.m. to 1 p.m. Tuesday, April 26, in Room 406 of the Norm Dicks Government Center located at 345 Sixth Street in Bremerton. There is no charge, and light refreshments will be provided, but participants are welcome to bring their own lunch.  To register, contact Sorenson at 360-337-2071 or Erin_Sorensen@navyfederal.org.


Local veterinarians receive top rank from Seattle Met

New non-profit sets up shop in Kitsap County

Two local veterinarians have been ranked as top veterinarians locally by Seattle Met magazine. Dr. Dave Burgess and Dr. Michael Stone practice at Animal Emergency and Trauma Center in Poulsbo. Seattle Met, in partnership with the national survey company Top Vets, sent ballots to veterinarians listed with the Washington State Veterinary Medical Association and other local societies in King, Snohomish, Kitsap, Pierce, Whatcom and Thurston counties. The survey asked the veterinarians “If a client’s pet was in need of veterinary care and you could not take the case, who would you refer them to?” The results appeared in the March issue of Seattle Met along with a roundup of reasons why it’s great to be a pet in Western Washington. Animal Emergency and Trauma Center is located in Poulsbo. The practice is open twenty-four hours a day, seven days a week and takes emergency referrals from veterinary practices in Pierce, Mason, Kitsap, Jefferson, and Clallam counties. Dr. Burgess has been practicing companion animal emergency medicine since 1989 and is coowner of Animal Emergency and Trauma Center which was established in 1993. Dr. Stone has been practicing companion animal emergency medicine since 1999.

Feed Kitsap is a newly founded non-profit organization in Kitsap County actively seeking ways of improving the community. Its goal is to help provide clothes, food, mobile showers, improve parks and working with youth in Kitsap. There are a reported 240,862 residents of Kitsap County, and of those residents 21,195 are reported to be below the poverty line. This means that there are 51 people per square mile living below the poverty line. Feed Kitsap believes that the cost of doing nothing about this is too high. The founder, Shane McGraw, stated that Feed Kitsap is an organization that bridges the gap from people who want to help, to the people who are in need. Feed Kitsap chooses a different charity or cause every season to bring exposure and support. Its theory is, by working together rather than apart more can be accomplished. Last month Feed Kitsap teamed up to help donate food for the homeless to the Project Connect event at the Sheridan Park Community Center in Bremerton. By holding community food drives Feed Kitsap was able to donate six hundred large bags of non-perishable food items as well as hygiene kits, phone cards and much needed items. For information visit www.feedkitsap.org or email info@feedkitsap.org.

Angel named Legislator of the Year by career and technical education administrators

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Rep. Jan Angel (R-Port Orchard) was honored as the Northwest Region Legislator of the Year at a recognition reception by the Washington Association of Vocational Administrators. The group recognized Angel for “promoting and supporting the efforts and value of career and technical education within the legislative processes and venues throughout the state.” The 26th District legislator said she was honored to receive the award. Angel also had the opportunity to tour the New Market Skills Center in Tumwater to see firsthand how students are learning in a focused, hands-on environment.

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Young Gig Harbor Rotary Club funds major project By Rodika Tollefson Rotary Club of Gig Harbor North recently gave a $20,000 grant to Key Peninsula Lutheran Church as seed money to expand the church’s program for homeless people. The club, which is less than two years old, raised $10,000 in order to receive a matching grant from the Bill & Melinda Gates Foundation. The Rotary allocated $2,500 from its inaugural Over the Narrows Run, and raised another $7,500 from members and local churches. “We quickly leveraged $2,500 to $20,000 for a substantial need,” said David Roskoph, publicity chair for the Rotary Club. “Our membership, pound for pound, are like special forces — these guys really get things done.” The Gates Foundation contribution was part of a partnership between the foundation and Rotary International District 5020, 5030 and 5050 to fund efforts that fight family homelessness. Rotary District 5020 received a $100,000 matching grant as the intermediary to distribute for existing projects, and each club within the district could apply for grants between $2,500 and $10,000 as long as L-R: David and Karen Jorgenson, Key Peninsula Lutheran they raised money to match Church, receive the symbolic $20,000 check from Rotary Club them. The foundation plans to of Gig Harbor North’s President Kathleen Melendez, invest up to $60 million over Community Services Chair Connie Rose and Rotary Club the next decade in support of Foundation Director Ken Roberts. organizations in King, Pierce and Snohomish counties that are working to end homelessness. The requirement from the Gates Foundation was for the beneficiary program to meet specific criteria, including early intervention and prevention before people lose their housing, and increased economic opportunity to help parents reduce the gap between income and rent. Roskoph said his club has identified the Key Peninsula Lutheran Church as already providing these kinds of services on a shoe-string budget. “This is really a big deal because there are no formalized services or support system for homeless in Gig Harbor/Key Peninsula area and we’re able to provide some of that,” said Karen Jorgenson, coordinator of the social services ministry at the Key Peninsula Lutheran Church. The church has been providing emergency housing in travel trailers, along with support ranging from security deposits to job search assistance. The goal is to find a facility to lease on the Key Peninsula and another in Gig Harbor, along with setting up computers at the facility and at the church so people can look and apply for jobs online. The church is part of Peninsula Communities of Faith, a coalition of more than a dozen Gig Harbor/Key Peninsula churches that have been working on joint community projects including Food Backpacks 4 Kids, which provides food to area local-income families. The homeless program will transition under the auspices of the coalition, Jorgenson says, and she estimates the total funds needed for a well-rounded program at around $50,000 for the first year for two sites and $100,000 the second year, as more homeless families come forward with needs. The $20,000 donation was the first major contribution for the Rotary Club of Gig Harbor North, which was founded in July 2009 and has about 25 members. The Labor Day 10-mile Over the Narrows Run, which raised $11,000, will become a signature fundraiser and Roskoph anticipates it will grow beyond the 7 00 people who participated the first year. He attributes the success of the event to Miguel Galena, who owns Route 16 Running and Walking store in Gig Harbor and as a result of his effort received the Paul Harris award from the club. The nascent club has also been a big support of the Communities in School of Peninsula, which matches up adult mentors for afterschool reading and math programs at area schools. The club has been providing volunteers for the weekly sessions. “When our Rotary was formed we had no money, we just had our time so we put in sweat equity,” Roskoph said. Rotary volunteers have been helping out with other events as well, along with contributing toward Rotary International’s program that funds emergency shelter boxes for disasters. The club meets at 5 p.m. on Tuesdays at St. Anthony Hospital. For more information about the club, contact David Roskoph at (253) 858-2745.

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Blocking and tackling isn’t just for football more times a football team turns the ball over to the opposition, the less opportunities they have to score and the more their opponent does. It’s a numbers and field position game. You get so many “shots on goal” every day, week, month, and year. Each one is valuable because it represents an opportunity to add a client, gain a referral, and build a loyal clientele. How many potential clients and partners slip through your hands because of carelessness or inattention? How many “turnovers” do you have that are missed opportunities?

Be protective of your opportunities, even to the edge of being hawkish. Just like a touchdown is for a football team, these opportunities are like gold for you. Sports is often used as a metaphor for business and for life and justifiably so as the components of games are synonymous with the game we play on the streets and in the boardrooms of the business world. Winning football games is a lot like winning in business. You must do the fundamentals well, you must be prepared, and you must hold on tight to your opportunities. If you do this, you can expect to be a champion!

(Editors note: Dan Weedin is a Poulsbobased management consultant, speaker, and mentor. He helps entrepreneurs, organizations, and small business owners to create remarkable results through leveraging the power of relationships. He is one of only 28 consultants in the world to be accredited as an Alan Weiss Master Mentor. You can reach Weedin at (360) 697-1058; e-mail at dan@danweedin.com or visit the web site at www.DanWeedin.com.)

April 2011 Kitsap Peninsula Business Journal•KPBJ.com 5

By Dan Weedin As I wrote this column, Super Bowl XLV just concluded between the Green Bay Packers and Pittsburgh Steelers. You can learn a great deal about business and life viewing sports, especially when you’re watching champions. In fact, this game and all its pageantry are ripe with examples of what to do (and what NOT to do) in your business “game.” Let’s scrutinize three that come to my mind… In the end, it’s all about blocking and tackling. Football may seem like a highly complex game with players scrambling, audibles being called, and coaches whispering secretly into a gigantic play cards. However, when it’s all said and done, generally the team that does the best job blocking and tackling wins the game. Breaking down a football game into its very fundamental basics is as old as sports itself. Think about your own sports or activity experiences. Whether it was football, baseball, basketball, the piano, the flute, or singing, each of these activities has basic tenets that all else is drawn from. In football, when you don’t do these basic fundamentals well, you lose and look bad doing it. When you play an instrument or sing and don’t do the basics well, you perform poorly and look bad doing it. What’s this mean for you? There are basic tenets of business, too. Language, communication, organizational prowess, perspicacity, perseverance, and motivation to name some. If you go out into your field of play not being adequately prepared to “block and tackle,” you will not be successful and look bad doing it! What did you say? If you were one of the millions who watched the national anthem preceding the Super Bowl, undoubtedly you said just what I did to my wife when listening to Christina Aguilera sing it — “What did she say?” By the time you read this, you’ll have heard numerous times of the flub made by the popular singing star to the words of our national anthem. Francis Scott Key is probably turning over in his grave! Yes, the music and melody of our national song is difficult to sing, but th e lyrics are the lyrics. If you were going to be honored to sing the song in arguably the biggest stage on television, wouldn’t you think you would know the words? For a singer, this is akin to blocking and tackling. Knowing the words to the song you’re singing in front of a gazillion people (give or take a few) is a basic tenet. This calls for preparation. In business, are you adequately prepared for overcoming objections, terminating employees, enhancing your skills, resolving conflict, managing crises, leading teams, and getting referrals? If not, you’re probably as vulnerable to debacle as Ms. Aguilera was. It’s unprofessional for you to endeavor into your spotlight without being prepared. Turnovers are deadly. The Steelers turned the ball over three times on two interceptions and a fumble. One of the interceptions was returned for a touchdown and they lost by 6 points. The Packers didn’t have a turnover. Do the math. The


COVER

6 Kitsap Peninsula Business Journal•KPBJ.com April 2011

from page 1 biopsy is usually performed. When final results are still indeterminate (which is about 15 percent of the time), physicians recommend the thyroid to be removed — but only 15-20 percent of the removed tumors actually turn out malignant. Henne said the Afirma analysis has a 95 percent or better predictive rate. “The result is, you have fewer repeat fine needle aspirations and eliminate repeat biopsies,” he said. The analysis also eliminates the need for unnecessary diagnostic surgery, he added. One of Henne’s patients had an FNA performed three times, with the results indeterminate each time. The patient learned about the new test after researching options, and Henne felt it was something he wanted to offer. The FNA procedure is not much different from the traditional — he simply has to assemble the specimen in two different vials, one to be used for biopsy and the other for molecular analysis. The DNA analysis is looking for specific genes involved in thyroid malignancy — it measures the activity level of 142 genes — and classifies the tumor as either benign or suspicious for cancer. Dr. Bryan Haugen, head of the Veracyte trial at University of Colorado-Denver, told the International Thyroid Congress last September that the initial tests showed the analysis had a false negative rate of four percent, the same rate of the false-negative and false-positive from biopsy results. In the fall, about 50 medical sites throughout the country conducted further clinical trials, and results are expected to be published soon.

Staying on the Cutting Edge Kelle Kitchel-Cooper, director of development at InHealth Imaging, said the Afirma test has been sought after by patients from the Seattle area, including software company executives looking for the most current options. But this is not the first time Henne has been on the cutting edge, especially as a solo practitioner. His diagnostic and preventative imaging services range from MRIs, MRAs (including 3-D reconstruction MRA) and CTs to ultrasounds, nuclear medicine and osteoporosis screening, but he also offers special procedures such as CT-guided pain management, the only radiologist on the Kitsap and Olympic peninsulas to do so. In addition to upgrading a lot of its technolog y, InHealth Imaging also implemented a Picture Archiving Computer System (PACS) that allows all physicians to log in remotely to see their cases instantly. In a couple of months, Henne will be at the forefront again. InHealth Imaging is in the process of adding a three-dimensional mammography system. The technology, called Selenia Dimensions system and

manufactured by Hologic, was approved by the Federal Drug Administration in February. It was pioneered at Massachusetts General Hospital, and Henne’s practice is the first one to adopt the technology in Puget Sound and possibly on the entire West Coast. Dr. Elizabeth Rafferty, who led the implementation of the system at MGH, was quoted as saying, “Like flipping through the pages of a book, the radiologist is able to look at one page at a time instead of seeing the whole breast reduced to a single frame, as is the case with standard mammography.” Three-dimensional mammography, known as tomosynthesis, uses a procedure similar to the traditional mammogram and it

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doesn’t cost extra. But the radiologist can see the tissue in detail that wasn’t possible before, in one-millimeter slices at a time; this results in less need to come for additional views as well as in more precise diagnosis. “It’s really devastating to miss a breast cancer diagnosis as a radiologist. I learned over the years it’s not benefitting the patient population to wait on the technology to be widespread,” Henne said. “I don’t want to wait until they ask me to do it, I wanted to bring it to the community now.” Growing Practice Born in Germany, Henne received a doctorate degree in physics (and had several patents) prior to going to medical school. The change in careers was the result of his desire to work outside of a lab and connect physics with medicine while helping prevent illness. He moved to the United States for a radiology residency and later completed a fellowship in radiology as well. He founded his practice on the Kitsap Peninsula 12 years ago. InHealth Imaging, which has a total of about 25 staff, also has offices in Silverdale and at North Kitsap Urgent Care and is open seven days a week including after hours to accommodate working professionals. A new location will be added on Bainbridge Island in April or May. In the meantime, the main office, at North Kitsap Medical Center, is beginning a renovation to add more space along with a component focused on wellness and education. Henne said he wanted to have an independent practice because he likes working in a small setting. The disadvantage is that he has added risks — he has to sign a personal guarantee, for example, when he invests into new equipment, some of which costs more than $1 million. But he compares his work to that of a chef who has his own restaurant instead of working for someone else — adding cutting-edge equipment being one example, because he doesn’t have to go through a board or other decision makers to implement it. Kitchel-Cooper said the main advantage is structuring the business so it’s patientcentric. Besides using the latest technology, Henne offers another unusual option: Any patient is welcome to meet with him after imaging to discuss the results instead of waiting to talk to his or her physician. She noted that many of the services are less expensive at InHealth because there is no additional “facility fee” charged by imaging labs that are affiliated with a hospital. The office also has a dedicated line for patients to call and find out the complete cost of a procedure (since the fees cannot be publicized). “You really don’t have to take the ferry anymore (for services),” she said. “…I think healthcare here is as good as in Seattle, and there’s more personalized care.”


Poulsbo dentist helping area families As the healthcare debate rages nationally, one Poulsbo dentist has decided to do something tangible to help individuals and families afford quality dental care. “Statistically speaking, more than 60 percent of Americans don’t have dental insurance,” said Dr. Jeromy Peterson from his new, state-of-the-art dental practice in Poulsbo. “This means that a large majority of people here locally delay dental procedures, which is not good for dental health or overall healthcare.” A recent report by CBS News cited by Dr. Peterson indicated dental disease as a contributing factor in many seemingly unrelated problems... including employment problems, heart disease and childhood school absences. “Even here in Poulsbo we see kids in our practice who are in chronic p ain because a simple cavity was not caught in time. That cavity was not caught because the parents perceived that they could not afford dental care. By the time the pain for the child is unbearable... the cost of solving the problem has escalated two or three times over what it would have been if caught a year earlier.

This bothered me a great deal and I decided to be part of finding a solution.” The soluti on that Dr. Peterson helped develop with other dentists across the country is both simple and quite ingenious... and may prove to be a model for healthcare reform across the board. “Numbers don’t lie... and we found that we could create a system where families could get earlier preventive and less expensive dental care.” The program is called QDP — Quality Dental Plan

(QualityDentalPlan.com), which is now rol ling out nationally. “I sat down with my front office team and saw how much money was going to insurance companies, claim forms administration and collections costs. We also calculated how many hundreds of extra dollars families were spending by not catching potential problems that we could have found during a simple annual dental exam. When I began to run these numbers with other dentists around America, we found that we could offer our patients free

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Harrison Medical Center recently became a member of the WA CARES Cancer Partnership representing the West Sound area. Ed Smith, director of Harrison’s Oncology Service Line, has been elected to serve a two-year term on the Steering Committee through January 2013. In his role on the committee, Smith will work to integrate Harrison’s oncology initiatives with the efforts of the partnership to reduce the effects of cancer on local citizens and the community. He will advance the vision of the partnership and support efforts to: reduce cancer incidence, morbidity, and mortality; increase equity in access to preventive screenings, diagnostic and medical treatment, and palliative care; maximize the quality of life for individuals with cancer; promote research and educate consumers, providers, payers, and policymakers on cancer issues. The WA CARES Cancer Partnership currently has 68 member organizations and is open to anyone interested in cancer issues. Representatives include survivors, individuals, health professionals, associations and public and private organizations from across the state. For more information contact the Comprehensive Cancer Control Program at Washington State Department of Health by calling (360) 236-3784 or emailing cancer@doh.wa.gov. Harrison’s oncology program has been accredited by the American College of Surgeons Commission on Cancer since 1985. For more information, visit www.harrisonmedical.org/oncology.

initial exams, free exam x-rays, free teeth cleanings and as much as 20 percent off our usual fee structure simply by creating our own in-house dental savings plan.” The result was QDP. “This one simple step has allowed us to eliminate the insurance company middle man, and those savings are going right back into the pockets of folks here locally. I’m really proud to be part of this forward looking cost-savings movement. This is a great system for dental care everywhere.”


Harrison Medical to expand Silverdale campus

8 Kitsap Peninsula Business Journal•KPBJ.com April 2011

By Rodika Tollefson Harrison Medical Center is moving ahead with its expansion of the Silverdale campus, which will include the construction of a new orthopedic operating facility as well as a renovation and expansion of the emergency department, along with two other components. The orthopedic and spine center will have four operating rooms and 24 private patient rooms initially, with additional shelled-in space for future growth. The 66,000-squarefoot facility, which will be located in a separate building adjacent to the hospital, will cost $19.2 million to build. The center will be owned by Harrison but operated by a professional limited liability corporation that will be created by the 12 participating orthopedic surgeons, who are practicing at The Doctors Clinic, WestSound Orthopedics and Peninsula Orthopedics. Mindy Markley, administrator for WestSound Orthopedics who is also the director of Harrison’s Orthopedic Service Line, said the scope of the collaboration between several surgeon groups and the hospital is unique for this area. “You’re able to bring the strengths of the hospital and physicians together to create the

best patient experience,” she said. “…When it comes to the patient, it’s not about competition. It’s not about the surgeon or the hospital — it’s a 100 percent about the patients getting the best care today and in the future.” Currently, orthopedic surgeries do not have a designated area at Harrison. Markley said creating a state-of-the-art center will help increase the visibility of the services already available in Kitsap County. “We know that 50 percent of our population leaves the community (for orthopedics)… We provide a lot of services the public is not aware of. People think they need to go to the big city while these services are in their back yard already… We know there are more patients out there who need services and our current capacity can’t meet those needs.” With the population of Kitsap Peninsula aging — seniors are the fastest-growing demographic — Harrison officials said there will be an increased need in orthopedic procedures such as knee replacements. “Doing 24 beds in a community like Kitsap, with the demographic, makes a lot of sense. Seniors are a lot more active now than they used to be and joint replacements are important,” said John Wallen, Harrison board

of directors chair. “From the board perspective, this was absolutely driven by trying to meet community need. It also has a great potential for more than paying for itself and generating additional revenue for things that don’t pay for themselves.” The facility is currently in the design phase, and Bremertonbased Rice Fergus Miller has been hired as the architect. Construction is expected to last 14 months, with the goal to open the center in June 2013. Harrison had previously planned a major expansion of its Silverdale campus, including the addition of 92 beds. Those plans were put on hold two years ago, as the economy has affected health care organizations and the stock market has caused Harrison’s reserves to be diminished. The original plan also included an orthopedic wing and an enhanced emergency department. In January, the board of directors approved the new $35 million expansion plan. It includes a $4.5 million emergency department renovation that will expand from the current 13 patient rooms, to about 20 larger ones, as well as add a new waiting area and a new entrance. The data center will be enhanced; the $7.6 million project will consolidate server space in order to accommodate additional server space needed for electronic medical records and future needs. President and CEO Scott Bosch said “the market has come back nicely” and the nonprofit health care organization has recovered what was lost. “We have borrowing capacity and the hospital is in good financial

shape, and we want to begin to reinvest in the community,” he said. He said the original plans have been scaled back, partly due to growing competition from the newly opened St. Anthony Hospital in Gig Harbor. The long-term planning has also been modified by health care reform and some of the uncertainties that come along with it. He said the focus is on three areas: more integrated relationships with physicians, quality and cost control. “Even though (the orthopedic center) is a new building, there’s ways to design it to be efficient,” he said. The project will also balance out the two campuses because it will take some pressure off the Bremerton location, he added. The fourth portion of the expansion, expected to cost $3 million, will be a consolidation of administrative support functions across the entire organization. A new facility, up to 25,000 square feet, will be built at a location yet to be determined somewhere along the Wheaton Way corridor in Bremerton. Walden said that while the new market and health care reform changes have caused organizations to develop plans “more nimbly,” Silverdale, page 9

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AMI Women’s Diagnostic Center to open in Poulsbo Advanced Medical Imaging (AMI) announces it is opening its newest Women’s Diagnostic Center in Poulsbo. Doors will open April 4 at 22180 Olympic College Way NW, Suite 100 in the Cascade View Medical Center, and appointments are now being scheduled for this location. The new office is located just off Highway 3 and Highway 305 – just south of the Olympic College Poulsbo campus. Hours will be 8 a.m. to 5 p.m., Monday through Friday. Digital Screening Mammography is one of two modalities being offered. Digital mammography is the latest technology in breast cancer detection and offers many advantages, including more accurate diagnosis, reduced radiation and quicker exam time. AMI also uses a computer assisted diagnosis system (CAD), which gives a second computerized pair of eyes on

all mammograms for increased detection. DEXA Bone Density Scans are also

offered here. This low dose x-ray beam determines the density of bone mineral at the hip and spine, as well as track treatment for osteoporosis. This equipment also offers Vertebral Fracture Assessment and can calculate the 10 year fracture risk probability for patients. The Poulsbo office will be completely digital, as are all AMI offices, and on PACS or Picture Archiving and Communication System. This system allows physician offices to view images and radiologist’s

reports on a secure website, usually within 24 hours after the appointment – anywhere in the world. The Women’s Diagnostic Centers are a division of Advanced Medical Imaging. Two additional centers located in Port Orchard and Silverdale, also offer Digital Mammography and DEXA Bone Density Scans. For appointments at this location, call the main scheduling numbers at (360) 337-6500 or toll free (800) 972-9264. For more information, call (360) 3376530, refer to the website at www.amiradiology.com or join on Facebook.

Messenger House recognizes Steiner during Long Term Care Administrator’s Week

SILVERDALE from page 8 it was important to move forward. “I don’t believe the orthopedic wing is the last thing we want to do in this community, so we need to get moving on it,” he said. He said one aspect that’s impacting future planning is the continuous decrease in Medicare and Medicaid reimbursements, especially since a large part of Harrison’s patient base are covered by those. “We need to be more efficient on how we do things,” he said. “Process improvement is a big part of what we’re doing right now.”

April 2011 Kitsap Peninsula Business Journal•KPBJ.com 9

Messenger House Care Center, located on Bainbridge Island, is honoring its administrator, Carmen Steiner, during Long Term Care Administrator’s Week, March 14 – 18. While overseeing and directing the operations of the facility, Steiner leads by example with resident and family needs, a strong political voice and advocacy for the industry. She upholds government regulations and company policies, while achieving the facility’s business objectives. Steiner was previously at Bessie Burton Sullivan on the campus of Seattle University for 17 years and with Woodmark Retirement Corp. prior to Messenger House. “She is truly an inspiration to those around her, when you walk through the door; there is a sense of family with staff and residents alike. Carmen has brought light and heart to our facility.” said Diann Scanga, social services department Long Term Care Administrator’s Weeks recognizes the contributions of Administrators for long term care centers by The American College of Health Care Administrators (ACHCA).


Prostate cancer often a disregarded concern by men By Rodika Tollefson Prostate cancer is the second mostcommon form of cancer (after skin cancer) and the second leading cause of cancerrelated deaths (after lung cancer) in American men, according to the American Cancer Society — and every year, more than 200,000 new cases are diagnosed. But while one is six American men are expected to have this disease during their lifetime, men are much less likely than women to worry about preventive screening. “The most common killer for men is cardiac disease, so if you’re watching your diet and exercise and are not smoking, the next thing to watch is prostate cancer. Unfortunately in the Northwest, we’re active outdoors and enjoy recreation (and healthy activities), and we don’t think we need to be checked,” said Marc Mitchell, a urologist with The Doctors Clinic. “Men in the Pacific Northwest don’t think they need to watch their cardiac health or urinary tract health, there tends to be less awareness. As a man, that concerns me.” He said in terms of public awareness, the issue of prostate cancer is where breast cancer was about 20 years ago, and one reason is because women in general are

more open to talk to other women about their health. “Men generally bring up the subject of what’s going on in their lives only when asked directly,” Mitchell said. As with many other cancers, if detected early, prostate cancer is very treatable. Surgery and radiation are the most common treatment options but there are many others, including cryotherapy. “If you’re treated, your chances are very good you will be a cancer survivor but the percentage is based on your risk category,” said Dr. R. Alex Hsi with Peninsula Cancer Center, who founded the Peninsula Prostate Institute, a consortium of Kitsap Peninsula specialists including urologists, radiation and medical oncologists from different practices. “The risk categories (low, medium and high) tell us how aggressively and quickly it grows.” He said some patients may not need treatment other than “active surveillance” but the key is that they still need to be screened and diagnosed. The only way to diagnose prostate cancer is through a medical exam and a PSA (prostate-specific antigen) test. The PSA is a substance produced by the prostate, and if the blood

has an elevated level of PSA, cancer may be suspected — but there may be other reasons for an elevated result. Mitchell said traditionally, it has been recommended for men to be screened starting at age 50. “The problem is, a lot of men develop an enlarged prostate or cancer at a younger age so it’s hard to have a baseline,” he said. He said recent recommendations from the American Society of Clinical Oncology is for men to get their first PSA test at age 40, before the onset of cancer, so that a baseline is available. If that test shows a low level (i.e. 1.5), then the risk is low but if it’s higher (i.e. 2.5), then the person has to be monitored more closely. Locally, Mitchell is one of two surgeons currently who can perform robotic surgery for prostate cancer, a less invasive procedure that requires only small incisions and has shorter recovery time. He said while surgery is prevalent, it’s important for a patient to be educated about all his options, including the benefits and drawbacks of each. “It’s a very detailed discussion and has to be tailored to every individual,” he said. The Peninsula Prostate Institute model has allowed for those discussions to take

place among the various specialists during case review meetings, Hsi said, and the idea has been well-received. Patients who choose to be involved with the institute get their cases reviewed by the group together and can then see each needed specialist during one visit to the clinic and talk about treatment. “It gives them a comprehensive overview of their care and different options,” he said. “…They get their opinion and treatment plan much more quickly and make a more informed decision.” One of the new treatments for cancer, a vaccine called PROVENGE (manufactured by Seattle-based Dendreon), will soon be among the options for Kitsap patients. In partnership with Harrison Medical Center, the Peninsula Prostate Institute will offer the vaccine, recently approved by the Federal Drug Administration for advanced prostate cancer, in the next month or two. Mitchell said the most important thing about prostate cancer is to not procrastinate — the later it is diagnosed, the chances of treating it decrease. “If screened early, it works so much better,” he said. “We need to be as proactive with our health as we are proactive with other areas of our lives.”

10 Kitsap Peninsula Business Journal•KPBJ.com April 2011

Stroller Strides partners with the March of Dimes to “March for Babies” Today, one in eight babies in the U.S. is born prematurely, making premature birth the leading killer of America's newborns. To help focus attention on the serious health complications of preterm births, Stroller Strides, pre-natal and post-natal exercise program for new moms and their babies, is again partnering with the March of Dimes to support the "March for Babies" campaign to help focus attention on this serious health problem. "Every day, we help moms and their babies focus on staying strong and healthy," said Ellecia Williams, owner of the local Stroller Strides program. "Our support of the "March for Babies" campaign is a natural extension of that focus. It's a privilege to be able to contribute to the March of Dimes' important work to decrease the number of preterm births in the U.S." The "March for Babies" campaign is the March of Dimes' biggest fundraiser and, according to Stroller Strides Founder Lisa Druxman, Stroller Strides has been an important part of that success. Last year, Druxman presented a check for $92,000 to the March of Dimes' 2010 National Ambassador Joshua Hoffman at the Stroller Strides national convention in San Diego topping the previous year's contribution by $11,000. This year, Stroller Strides franchisees and corporate team members hope to raise $111,000 through their March of Dimes' "March for Babies" fundraiser. LUNA Moms Clubs, offered at every Stroller Strides location, including those in the Bremerton area, will focus their quarterly “Moms with a Mission” program on local March for Babies walk events. Events take place in more than 900 locations across the United States, the District of Columbia and Puerto Rico in April and May. Moms can sign up through their individual LUNA Moms Clubs Powered by Stroller Strides, secure sponsor donations and then participate in a walk event in their local community. For more information about Stroller Strides of Silverdale, contact Williams at (800) 9720928 or elleciawilliams@strollerstrides.net.

Hospice volunteers needed in Kitsap and Pierce counties Group Health is seeking hospice volunteers with weekday availability in Kitsap and Pierce counties, especially in the areas of Bremerton, Port Orchard and Gig Harbor. Hospice volunteers stay with patients in their homes, assist with errands and practical tasks, and offer emotional support to terminally ill patients and their families. The next training sessions will be held on three consecutive Saturdays beginning April 2 through April 16 in Tacoma. Attendance on all three Saturdays is required. For more information, call Julia Casey at (253) 274-4635 or toll free at (888) 781-3573.


Harrison CIO earns healthcare leader distinction Adar Palis, Harrison Medical Center’s vice president of administration and chief information officer, recently was named to the Becker’s Hospital Review list of “Rising Stars: 25 Healthcare Leaders Under Age 40.”

Harrison Medical Center offers new radiation treatment for cancer care

electronic medical records project at Harrison Medical Center. After three years, the project is three-quarters complete, with bedside medication bar-coding and computerized physician order entry on tap for 2011. As part of his continuing efforts to implement electronic health record technology, Palis will lead the rollout of a communitywide HIE in early 2011. Palis graduated magna cum laude from Seattle Pacific University and holds six Microsoft technical certifications. Becker’s Hospital Review is a national bimonthly publication offering up-to-date

business and legal news and analysis relating to hospitals and health systems. The content includes hospital and health system news, best practices, and legal guidance specifically for these decision makers. For more information, visit www.beckershospitalreview.com. Palis also earned the Kitsap Peninsula Business Journal’s “40 Under Forty” honor in 2005 in which the Kitsap Peninsula’s best, brightest, and most outstanding individuals under the age of 40 are chosen from a panel of local leaders, elected officials and business people.

April 2011 Kitsap Peninsula Business Journal•KPBJ.com 11

Harrison Medical Center has upgraded its radiation oncology treatment equipment and software to provide physicians and patients with more choice in treating complicated cancers. RapidArc technology is a new form of image-guided, intensity-modulated radiation therapy (IMRT) that improves tumor targeting and shapes the radiation dose so that it conforms more closely to the threedimensional shape of the tumor. This means more dose to the tumor and less to surrounding healthy tissue. The treatment has been available at Harrison for several months, and required an upgrade to the linear accelerator equipment. It can be used for all types of cancer, and typically for more complicated cases. “It’s a huge advance in IMRT. For us, it will eventually be the IMRT treatment most commonly used,” said Dr. Charles Springate, a radiation oncologist at Harrison. As part of the cancer diagnosis, the medical team generates threedimensional diagnostic images (usually CT or MRI) of the patient's anatomy. These images are used to specify the dose of radiation needed to treat the tumor. In some cases, treatment planning includes a simulation session to further localize the cancer. During a RapidArc treatment, the linear accelerator rotates around the patient to deliver the radiation from nearly every angle. The radiation is shaped and reshaped as it is continuously delivered from virtually every angle in a 360-degree revolution around the patient. Treatment during a 360-degree revolution takes less than two minutes. The benefit to patients includes shorter treatment sessions — up to 85 percent shorter — from six or seven minutes to approximately one. Patients are immobilized for a shorter amount of time so there’s reduced discomfort due to reduced exposure to radiation. The technology can also mean cost-savings for the facility because of the shorter staffing time required. “There’s virtually no downside to it,” Springate said. He noted that Harrison has several state-of-the-art technologies available for treatment of cancer. “Many places in Seattle don’t even have these,” he said.

Palis, 32, joined Harrison Medical Center in 2002 as a network engineer and was later named CIO of the hospital in 2005, becoming the organization’s youngest executive at age 27. He quickly initiated significant changes, such as establishing a more customer-focused IT department, constructing a state-of-the-art data center, installing a new network infrastructure to include remote campuses digitizing X-rays and introducing free wireless across all Harrison campuses. Palis has spearheaded a multiyear project to implement a $30.5 million


Eagle Harbor Holdings expands senior staff Bainbridge Island’s Eagle Harbor Holdings (EHH), LLC, announced that corporate development veteran Dr. F. Paul Carlson has joined the firm as advisor for corporate development and strategic planning for the formation of new subsidiaries. Initially Dr. Carlson will focus on corporate development for the Elixsys and Chameleon subsidiaries. He will assist managing director Joe Preston with Chameleon and managing director Troy Niehaus with Elixsys, LLC. Carlson is also president and CEO of the Carlson Group of Companies in Olympia and most recently served as chairman and CEO of Cascade Microtech, Inc. in a turnaround and restructuring initiative. Carlson was also a consultant to Lucent Technologies in New Jersey and Texas, and the Frank Russell Company in Tacoma.

Kitsap Tours offering Wine and Spirits Tour

12 Kitsap Peninsula Business Journal•KPBJ.com April 2011

Beginning April 22 Kitsap Tours will offer a Wine and Spirits tour featuring three of Bainbridge Island’s artisanal wineries along with Bainbridge Organic Distillery. Kitsap tours will meet its guests at the island ferry terminal. Enjoy a sightseeing tour of Bainbridge Island in a luxury mini bus, stopover at three local artisanal wineries for tastings, and visit Bainbridge Organic Distillery, Washington’s first USDA Certified spirits producer. There will be opportunities to meet with winemakers to discuss methods of winemaking; be shown how organic Washington grain is transformed into award winning organic vodka, gin and whiskey; and to purchase the creations of these skilled craftsmen. The tour concludes with an option to continue tastings in Winslow, check out one of the many dining options, all within walking distance of the ferry, or return immediately following the tour to the ferry terminal. Call (877) 877-1950 or visit www.KitsapTours.com to learn more.

New Gig Harbor restaurant a dream come true for South Kitsap grad By Rodika Tollefson Gig Harbor’s newest restaurant opened downtown in March, and coowner/managing partner Jason Winniford said the response has been overwhelming — not only has he had a full house every evening, he’s been overwhelmed by well wishes and congratulations. Winniford had previously worked at Gig Harbor’s Brix 25 as the general manager for four years, but the idea of opening his own establishment has been on the back of his mind much longer. When he saw the vacancy of the historic building on the corner of Harborview Drive, next to the new Gig Harbor museum, he decided to make his move. JW’s opened on March 4, catering to the 21-plus crowd with “creative comfort food” and an intimate, small-setting atmosphere. The restaurant can seat about 30 people and is only open for dinner. The museum has allowed JW’s to use its parking lot for dining patrons. The building, which was built in 1938 using the vertical log-cabin method wellknown locally, has been home to various businesses over the years — most recently a coffee shop, and an Australian restaurant before that. Winnifred’s father, who owns R & J Construction Services Inc., remodeled the space for the diner. “I’ve been waiting to have my own place for quite some time. I was looking at spaces in Gig Harbor,” he said, adding that he has even considered the former Gig Harbor Inn location after that longtime restaurant closed, but it was a matter of economics — and a desire to keep the financing and the operation in the family. “I was in a transition with my career, so it was no time like the present,” he said. Winniford’s parents, who live in Port Orchard, are partners in the new business. Family members and friends have been recruited to run JW’s for now, including his stepmother, who is the majority owner.

Winniford also hired longtime friend, Justin Goodfellow, to be the chef. Born and raised in Kitsap, Winniford is a 1997 South Kitsap High School grad and a resident of Gig Harbor for six years. He has worked in the restaurant industry all over West Coast, working his way up from the job of a graveyard dishwasher as a teen for Family Pancake House and later a “bus boy” at the McCormick Woods’ restaurant. He was on the original crew who helped open the Gig Harbor Inn in 1997. That is where he met Goodfellow, who was working there as a server at the time and has since also moved his way up the ranks and worked in some fine dining establishments in places like New York and Boston. During their earlier careers, it was Goodfellow who hired Winniford once — after Winniford finished culinary school, Goodfellow brought him on board as a paid intern at Salty’s. JW’s restaurant is focused around the idea of a neighborhood diner that offers comfort food “with a twist,” or what Goodfellow calls creative comfort cuisine, his take on classic dishes. The goal is to maintain reasonable pricing while serving food made from scratch. “One of the things I want to do is re-coin the term ‘American food,” Goodfellow said, explaining that since America is a melting pot of cultures, American food is really a

fusion of Mexican, Chinese and other cuisines. He also has several gluten-free choices and uses many organic ingredients. “I borrow a lot of my recipes but I take and twist them a little bit and put my own take on them,” he said. One idea in the works is a “Gig Harbor Cooks” program that will invite community members once a week to share their own recipes. Part of the proceeds from those special menu items will then be donated to the cook’s charity of choice. Winniford expected to start the program in May. “I want to connect people, I want us all to be connected,” he said. “…We wanted to feature the individuals, and what they cook at home. I think a lot of people are interested in that.” Owning his own business has been a dream in the making for 15 years, and Winniford said his main motivation is his passion for helping people. “Taking care of people brings a lot of joy to me,” he said. “This is one of the industries where people pay for services but thank you up and down for them… As I was working up in my career, this was the next step.” The two have a vision of opening five restaurants in five years if JW’s continues on track, but Winniford said he will not replicate the concept of JW’s. “I’ve built a lot of relationships while at Brix and Gig Harbor has embraced me and gave me so much love, I wanted to give something back,” he said. “I wouldn’t do a JW’s anywhere else.”

Boxlight promotes national sales manager Boxlight has announced the promotion of Chad Harrison to national sales manager. In his new position, Harrison will be responsible for managing the domestic sales team, developing new accounts, assisting with the role-out of new product and working directly with the Boxlight Marketing Team. Harrison has been in the A/V industry for nearly ten years beginning his career with Studio Experience, a consumer division of Boxlight Corporation. He spent many years within the Boxlight Corporation family until Cinelight was absorbed by Electrograph in 2005. Harrison returned to Boxlight in 2009 after Electrograph closed its doors. Since rejoining Boxlight Inc, Harrison has served as East Coast business development manage r where he has created numerous strategic partnerships and has had tremendous impact on the overall success of the company.


Clearing up the confusion on overtime pay work more than 40 hours in a week Whether or not companies can offer comp time is another question we hear frequently. This is also an area where state law differs from federal law. Washington state law allows comp time if the employee requests it. Employees that work overtime can bank the overtime hours at time and a half and take it later as paid time off. However, the Fair Labor Standards Act (FLSA) prohibits comp time, except for public agencies that are state, a political subdivision of a state, or an interstate governmental agency. Ironically, even though employee’s often request comp time, and Washington State says it is “considered a benefit to the employee,” federal law trumps it, and only public employees have this privilege. Timekeeping is, of course, another issue that directly relates to compensation. Many companies are utilizing technology or professional services to record and reconcile timekeeping. Whatever your systems, whether manual or streamlined with technology, there are a few things to keep in mind. First of all, keep good records, and keep them for a sufficient period of time. Be sure that you have access to the records. If you use an outside service, make sure that you will have all of the records available to you down the road, even if you change providers. Review your internal processes periodically to be sure that you are in compliance with all wage and hour laws. For instance, if you round hours, you want to ensure that the rounding process is unbiased and doesn’t benefit the employer more times than it benefits the employee. Speaking of technology, the increased presence of technology in the workplace and in our personal lives has given rise to compensation issues in the virtual workplace. For example, employees who are technically off the clock might find themselves picking up their smart phone and checking work emails, making a quick work related phone call, or listening to work voicemails — all without realizing that they are technically back on

the clock. What are the implications to you, as their employer when your 8-5 employee is suddenly available 24/7? It can mean that you owe them some overtime pay. In the past few years, there have been lawsuits alleging that overtime pay was due to employees who were given cell phones, laptops, or other devices, and who were allowed to utilize them for company purposes off hours. Whether or not the employer instructed or required the employee to utilize the device off hours for company work is not the issue, but rather whether they permitted it. If the work has been done, you must compensate the employee for it. An exception could be made if the work was de minimis, as defined under the FLSA. Basically, this applies when the work is for such an insubstantial or insignificant period of time that it couldn’t be precisely recorded for payroll purposes. One could imagine that this could pertain to an employee who briefly views one email at home. But if that employee spends 15 minutes every day viewing emails at home, which amounts to 1.75 hours/week, that does not meet the de minimis definition, and the work they did might constitute overtime. If employees have access to employerprovided mobile devices, these should be accompanied by specific policies. For instance, require employees to get permission prior to working any overtime hours. Note that you still have to pay them for overtime worked, regardless of whether permission was sought, but it then becomes a discipline issue that you can act on. Consider only providing mobile devices to exempt employees, to avoid the overtime issue entirely. If the mobile device is for use during working hours only, require them to leave it on work premises at the end of the workday. If they do take it home, require employees to accurately record all hours they work outside of the office. You don’t want any surprises down the road! Lastly, it is important to understand that these policies will apply regardless of whether the work is done on employer-provided

devices, or on ones that the employee owns. One can imagine that as companies struggle to stay financially afloat, and workers struggle to pay their bills, wage and hour disputes are on the rise. However, it can be costly to a business to be on the wrong side of a wage and hour dispute. An employee may go to L&I with a wage complaint, and if L&I investigates and finds the employer owes the wages, they may assess penalties and interest. Even worse, the employee has the right to bypass L&I and go to small claims court where they may collect double the wages and attorney fees. Therefore, it’s definitely in our best interest to be on the right side of the wage and hour laws from the beginning. These laws can be complex and they vary depending on what your worker does, the wages you pay, and the industry you are in. Sometimes it’ll take a phone call to L&I to get their guidance. But, be aware that if you rely on their rules, orders, advice, opinions, interpretations or determinations, and they’re wrong, you’re still on the hook as the offending party. This year in the legislature, HB 1532 would have created a good faith defense for certain minimum wage and overtime compensation complaints for businesses that relied on the advice of the Department of Labor & Industries — but the bill failed to move forward. Evidently, the laws are so complex that even those administering them can’t be depended on to understand every aspect of them! When in doubt, make an attorney happy and give one a call. (Editor’s Note: Julie Tappero is the President and owner of West Sound Workforce, a professional staffing and recruiting company based in Poulsbo and Gig Harbor. She can be reached at julie@westsoundworkforce.com. View her LinkedIn profile at www.linkedin.com/in/jtappero. The recommendations and opinions provided are based on general human resource management fundamentals, practices and principles, and are not legal opinions, advice, or guaranteed outcomes. Consult with your legal counsel when addressing legal concerns related to human resource issues and legal contracts.)

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April 2011 Kitsap Peninsula Business Journal•KPBJ.com 13

By Julie Tappero, President West Sound Workforce A large number of the questions we receive from our employer clients have to do with compensation. Our website statistics show that articles on this subject draw many visitors to our site. It’s not unusual for us to field questions from workers about pay issues either. This is hardly a surprise, as wage and hour laws vary from state to state, and federal laws conf lict with state laws. No wonder employers and employees are often confused! Washington’s laws often conflict with federal wage and hour laws, creating more confusion for employers. There are very specific laws about which employees must be paid overtime. If you have questions about whether you have correctly classified an employee, Labor & Industries has an online tool which compares state and federal laws. It’s available at www.lni.wa.gov/WorkplaceRights/files/ove rtime/FedOTCompareChart.pdf. It’s important to remember that: • You cannot depend on just complying with state or federal laws, but must compare the two. • When there is conflict between laws, employees are entitled to the protection of whichever law is more in their favor. Our state’s wage and hour laws require that non-exempt employees be paid overtime if they work more than 40 hours during a workweek. You, as the employer, define the workweek. It doesn’t matter if you pay monthly, bi-monthly or weekly, the overtime is still based on a 7-day period of time, which is predefined and cannot vary. Employees can work more than eight hours in a day and not be eligible for overtime. They can work every day during the week, and not receive overtime. Unless company policy states otherwise, paid time that isn’t worked (such as vacation and sick days) also don’t count towards overtime. Employees must be paid overtime only if they actually


Are your investments getting enough exercise? By Jay Seaton Now that spring is here, you may find it easier to get outside to run, bike or take part in other physical pursuits that you enjoy. As you know, the more active you are, the more efficiently your body will work. And the same can hold true for your investments — the more exercise they get, the more potential to work on your behalf. Just how do investments get “exercise”? Through lots of activity. And you can keep your investments active in at least two ways: through systematic investing and through dividend reinvestment. Let’s take a look at both these techniques. When you engage in systematic investing, commonly called "dollar cost averaging," you are continuously putting your money “in motion.” Essentially, you put the same amount of money into the same investments at regular intervals. So, for example, you might decide to invest $100 per month, in Company ABC stock. To impose this investment discipline on yourself, you could even have the money sent directly from your checking or savings account. Of course, since the price of ABC stock, like that of all stocks, is co nstantly changing, your $100 investment will buy different

numbers of shares each month. This can work to your advantage, because when the stock price of ABC goes down, your $100 will buy more shares. When the price goes up, you’ll automatically be a smart enough “shopper” to buy fewer shares, just as you’d typically buy less of something when its price goes up. Over time, systematic investing typically results in an average cost per share that’s lower than it would be if you were to make sporadic lump sum investments. If you can lower the cost of investing, this may help boost your investment returns. This also can be an effective way to fund your retirement account(s) each year. (Keep in mind, though, that even systematic investing can’t guarantee a profit or prevent a loss in declining markets. Also, you’ll need to have the financial resources available to keep investing through up and down markets.) Dividend reinvestment is similar to systematic investing in that it allows you to build more shares of an investment. But when you reinvest dividends, you don’t even have to take money from other sources to increase your shares — you simply have to request that a stock or a mutual fund, instead of paying you a dividend in cash, reinvest the dividend right back into that same stock or mutual fund. It’s an effortless way of adding shares. Similar to dollar-cost averaging, dividend reinvestment imposes an investment discipline on you — you automatically keep

putting money in the market during up and down periods. (Keep in mind that dividends can be increased, decreased or totally eliminated) Exercising your investment dollars in these

ways can help you go a long way toward keeping your portfolio in good shape — enabling you to make healthy progress toward your important long-term goals.

Do some spring cleaning on your (financial) house By Bim Prince It’s spring — time to clean out the gutters, tune up the lawnmower and wash down the windows. But as you attend to these types of tasks around your home, why not take the time to do some financial “spring cleaning” as well? Specifically, consider these moves: Dust off” your investment strategy. If there’s an area in your home that you haven’t looked at for a while, you may need to dust it off in preparation for the new season. And the same principle may apply to your investment strategy — if you haven’t examined it for a while, it may be time to clean it up to prepare for a new season in your life. After all, since you initially designed your investment strategy — that is, the total amount you invest, the percentages going into “growth” and “income” vehicles, the dollars going into taxable versus tax-deferred accounts and so on — many things may have changed for you, such as your employment situation, the number of children in your household and even your long-term goals. Consequently, you

may need to revise your investment strategy in consultation with your financial advisor. De-clutter” your portfolio. The chances are pretty good that if you look around your house, you’ll find many things that are actually duplicates, such as those five coffeemakers you’ve accumulated over the years — so you decide to “purge” a few. And when you take a close look at your portfolio, you might find several investments that you’ve added over time and that are similar to each other. If that’s the case, you might help yourself by selling the “redundant” investments and using the proceeds to buy different ones that can help you diversify your portfolio. (Keep in mind that while diversification can help reduce the effects of volatility on your portfolio, it can’t guarantee gains or prevent losses.) Prepare yourself for stormy weather. During springtime, we often experience heavy rains, hailstorms, high winds and other types of inclement weather. That’s why we keep our roofs Cleaning, page 15

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14 Kitsap Peninsula Business Journal•KPBJ.com April 2011

Your local financial advisors:

Sometimes the market reacts poorly to world events, but just because the market reacts doesn’t mean you should. Still, if current events are making you feel uncertain about your finances, you should schedule a complimentary portfolio review. That way, you can make sure you’re in control of where you want to go and how you get there.

Ron Rada

Pat McFadden, AAMS

Todd Tidball

8079 E Main St., Suite 111

19740 7th Ave NE Suite F

18887 Hwy 305 NE Suite 100

3255 NW Lowell St

Poulsbo

360 692-1677

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Silverdale

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Calvin Christensen

David Hawley

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Glenn Anderson, AAMS

3100 NW Bucklin Hill Rd. Suite 115

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Silverdale

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THE BIG ESTATE PLANNING QUESTION OF 2011

Should you exploit the new $5 million lifetime gift exemption? By Jason R. Parker In late 2010, Congress reunified the estate tax, gift tax and generation-skipping tax (GST), giving them all top rates of 35 percent with $5 million lifetime individual exemptions. In addition, the estate and gift tax exemptions are now portable between married couples. Upon the death of one spouse, the executor of the estate can elect to transfer any unused portion of the $5 million individual exemption to the surviving spouse. At the moment, these tax rates and generous exemptions apply through 2012. In 2013, things may change. So estate planning

and tax planning professionals are alerting their clients of this window of opportunity. The big news: the $5 million lifetime gift tax exemption. For married couples, the lifetime gift tax exemption is actually $10 million thanks to the portability factor. In 2010, the lifetime gift tax exemption was down at $1 million — and it wasn’t portable. If you used up the prior $1 million lifetime gift tax exemption before 2011, you now can gift up to $4 million more before 2013 given the new $5 million limit. (The lifetime gift tax exemption will be indexed for inflation beginning in 2012). So considering all this, the big question is: Should you give away as much as you can to your children before 2013 with the intent of reducing inheritance taxes down the road?

CLEANING

sun and the air. And as an investor, you’ll find “windows of opportunity” through which you can open yourself up to good investment possibilities. For example, even though we’ve clearly been in a challenging economy the past couple of years, a number of factors — such as low interest rates, improved corporate earnings and favorable stock valuations (the price you pay for a stock, relative to its earnings) — have actually meant that it’s been a pretty good environment for investors looking for quality stocks. By dong some financial spring cleaning, you may find that you’ve swept away some of the obstacles to helping achieve your goals.

from page 14 in good shape, keep branches away from our homes and take other steps to protect our houses and property from the ravages of Mother Nature. You and your family could go through some rough “weather” too, during the course of your lives, so you’ll want to make sure you have sufficient protection in the form of adequate life and disability insurance. Review your coverage to make sure it’s still adequate for your needs. Open up the windows of opportunity. After a long winter, you’ll find it pleasant to open the windows of your home and let in the

After all, lifetime gifts reduce your taxable estate. Additionally, if you give your children appreciated securities, the long-term capital gains of those securities will be taxed at their capital gains rates rather than yours. If your children’s income puts them in the 10 percent or 15 percent tax bracket, their capital gains tax rate is 0 percent through 2012. Portability means great flexibility — provided you play by the rules. Let’s illustrate how this works. Dad doesn’t gift up to $5 million during his lifetime — he only ends up gifting $3 million. Well, Mom can subsequently gift up to $7 million after he passes thanks to the portability rules, as there would still be $7 million to go toward the $10 million lifetime gift tax exemption for a married couple. There is an important rule you must follow to realize this portability: when the first spouse passes away, the executor of his or her estate must file an estate tax return even if no estate tax is owed. That estate tax return formally notifies the IRS that you are transferring the unused or partially used gift tax exemption. Incidentally, this estate tax return is due nine months after the death of said spouse, with a six-month extension permissible. Do families need bypass trusts anymore? We can’t say goodbye to them, because 15 states still levy their own estate taxes with exemptions commonly at $1 million or under. Moreover, who knows if portability will be permitted five or ten years from now?

The potential for savings could be great. When you look at this remarkably generous lifetime gift tax exemption allowance in light of certain estate planning techniques that might leverage it – such as the grantorretained annuity trust and the family limited partnership – the potential is intriguing. The problem: we don’t yet know what 2013 will bring. Yes, Congress could retain the $5 million lifetime individual exemption and portability for 2013 and beyond. Yet if Congress lets this sunset, we’re back to a $1 million individual lifetime gift tax exemption with no portability. So, estate and tax planning professionals must again weigh the degrees of opportunity and ambiguity presented in our shifting estate tax laws. (Editor’s Note: Jason Parker is the president of Parker Financial LLC, a fee-based registered investment advisory firm specializing in wealth management for retirees. His office is located in Silverdale. The opinions and information voiced in this material are not intended to provide specific advice or recommendations for any individual, and do not constitute a solicitation for any securities or insurance products. All information is believed to be from reliable sources; however, no representation is made as to its completeness or accuracy. Please consult your trusted professional for advice and further information. Parker is insurance licensed and offers annuities, life & long term care insurances as well as investment services.)

April 2011 Kitsap Peninsula Business Journal•KPBJ.com 15


Finnigan joins Kitsap Bank’s financial services team

AG McKenna to speak at Port Orchard Chamber

Kitsap Bank has added a new financial advisor to its financial services team. Andrew Finnigan, an LPL registered financial advisor with nine years of experience, joins a team of consultants dedicated to providing an array of financial products and services that best serve their clients. Through Kitsap Bank’s agreement with LPL Financial, customers have access to a variety of financial products and services, including professional money management, retirement planning, stocks, bonds, mutual funds, annuities, IRAs, life insurance, long term care and much more. “Whether you’re planning for your children’s education or your own retirement, we understand the vital importance of tailoring financial products and insurance services to address the needs and wants of our customers. That is what comprehensive guidance and planning is all about – offering the most appropriate and competitive investment alternatives especially designed to help our customers reach their financial goals,” said James Carmichael, Kitsap Bank president/CEO. Located at Kitsap Bank’s Bay Street Branch in Port Orchard, the financial services team is available by appointment to provide clients with personalized and professional financial guidance. Appointments for a free portfolio review can be made through any branch office.

The Port Orchard Chamber of Commerce will welcome Washington State Attorney General Rob McKenna as its guest speaker at its April 21 membership luncheon. The event starts at 11:30 a.m. in the banquet room at McCormick Woods. The second term AG will share updates on important State issues and breaking news regarding the economy, health care, and more. As Washington’s chief legal officer, he provides legal services to the state, state agencies and elected officials. He has won all three of the cases he has argued before the U.S. Supreme Court, defending voter-adopted laws on campaign finance reform, the top-two primary election system and the state public records law. His ongoing priorities are: Making communities safer by leading the state in fighting meth and prescription drug abuse, gang violence, sexual predators and domestic violence; Protecting consumers and businesses from identity theft, internet predators, fraud and high-tech crimes, such as cyber fraud, phishing and spyware; Promoting integrity in government by defending the state’s laws, implementing new performance management initiatives in his office and encouraging open access to government Meeting reservations are necessary, and can be made online before April 19,at www.portorchard.com or by calling (360) 876-3505. Membership Luncheons are open to members and non-members. Cost is $20 for members if prepaid and $22 at the door. Non-member cost is $22,paid in advance.

Mitchell named new loan servicing manager at KCU

16 Kitsap Peninsula Business Journal•KPBJ.com April 2011

Kitsap Credit Union (KCU) has named Randy Mitchell as its new loan servicing manager. Having gained financial regulatory experience with the FDIC along with other financial institutions, he brings over 20 years of financial experience to the position. Chief Lending Officer, George Hall, welcomed the addition of Mitchell to KCU, saying, “We are fortunate to have the level of experience Randy brings to the table. His diverse background in different areas of the financial industry will truly be an asset.”

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Local financial adviser shares retirement advice in new book By Rodika Tollefson For the past four-plus years, Kitsap financial adviser Jason Parker has been working with individuals who are retired or close to retirement and helping them get the most out of their investments. Part of the focus for his firm, Parker Financial LLC, has been on education, through workshops, radio shows, articles and blogs. In March, Parker took that educational aspect one step further, Jason Parker releasing a book called “Thriving in Retirement.” The book gives an overview into a system he has used with his clients in order to provide them sufficient income for retirement while reducing stock market volatility and outpacing inflation. “Our system is unique because we work with folks already retired (or close). It’s designed around the distribution of assets rather than wealth accumulation,” he said. A Certified Retirement Financial Advisor (CRFA), Parker has been in the financial industry for more than 10 years and opened his own firm in 2007. He said he was drawn to the demographic of retirees because he saw a need for people to look at their entire financial picture but also because he likes their value systems, which at that age are focused on family, faith and other important aspects. As a financial adviser, his focus is also different when working with that population. “It’s a completely different ball game. When you’re still working, you can afford to have some mistakes — you have time on your side. Once you retire, you may not be able to recover from a major market sell-off,” he said. “One of the biggest fears people have is making an irreversible mistake.” He said that during the credit crisis of 2008, retirees who implemented his strategies would have been less than five percent down in their investments, compared to people who lost 30 to 50 percent. “The core focus is building retirement strategies around their time horizon, not the market,” he said. “Thriving in Retirement” includes chapters on change, leaving a legacy, budgeting, generating income and various financial tools. Parker has interviewed other experts for the book including tax planners and estate attorneys. He said the timing of his book is important because of the dramatic changes that have happened in the last couple of years, from skyrocketing national debt and a volatile stock market, to taxes at a historic low, various government bailouts and an overhaul in the healthcare system. And on top of that, he said about 10,000 baby boomers are retiring each day. He said while his book will not fix the country’s problems, it will instead give people advice on how to deal with this new world, including how not to run out of money in retirement, pay as little as legally possible in taxes and avoid irreversible mistakes. “The system we’ve designed is about using the right tool for the right job,” he said. “I think there’s a high number of people in our community looking to retire soon and a lot of people are feeling a high degree of uncertainty. If they have questions, concerns or doubts, the should start by reading the book so they can structure their assets properly.”

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KPVCB announces annual tourism award winners

Joanne Victoria and daughter open new firm Joanne Victoria and daughter, Gabrielle M. Kunz have opened Gemma & Bixley, LLC, which focuses on leadership coaching, project management training and business intuitive consulting. Victoria, formerly owner of New Directions and author five books, and Kunz, have a combined forty years experience in the business management field. Clients include: AT&T, LucasFilm, Helzberg Diamonds, PG&E, US Navy and Wells Fargo. Reach Gemma & Bixley at (206) 5524658 or visit www.GemmaBixley.com.

The Bremerton Area Chamber of Commerce has announced the recipients of its annual Thunderbird Awards. Every year, the Chamber selects individuals who most exemplify outstanding leadership skills and strong commitment to the community. This year’s recipients are: • Government: Bill Mahan, Port of Bremerton Commissioner and Sharon Schrader, Kitsap Visitor & Convention Bureau • Community: Joanne Haselwood • Military: Captain Mark Brouker, Naval Hospital Bremerton and Captain Mark Whitney, Puget Sound Naval Shipyard and IMF The Thunderbird Awards ceremony is based on long-established tradition that honors the recipients in a nontraditional manner — they’re “roasted.” Recipients select two friends, associates or family members to share rare Bill Mahan insights and provide for a memorable evening. The evening is filled with laughter and gives recipients an opportunity to show a lighter side. The Thunderbird Awards Banquet will take place on April 7 at the Kitsap Golf and Country Club. Social time begins at 6 p.m. with dinner served at 6:30 p.m. Cost for the event is $60 per person or $580 for a sponsored table of eight. Table sponsors receive preferential reserved seating and recognition at the event and two bottles of wine. For information about the Thunderbird Awards or for reservations, contact the Bremerton Area Chamber of Commerce at (360) 479-3579 or chamber@bremertonchamber.org.

April 2011 Kitsap Peninsula Business Journal•KPBJ.com 17

The Kitsap Peninsula Visitor & Convention Bureau presented its 2010/2011 tourism awards at its annual meeting held on March 24, at Kiana Lodge in Poulsbo, and shared its vision for positioning the Kitsap Peninsula as a major tourist destination and mecca for adventure sports. “The marketing strategy the KPVCB initiated in 2009 to aggressively brand the Kitsap Peninsula as a region is working and attracting visitors and prospects,” said diane Robinson, president of the KPVCB Board of Directors. “We use the Kitsap Peninsula map on everything and it is giving people a much clearer sense of where our communities are located and our geographic boundaries. Even the weather reporters in Seattle are referring to us as the Kitsap Peninsula,” Robinson added. The KVCPB Board selected the Bloedel Reserve as Tourism Promoter of the Year because of it’s decision to provide much greater access to its internationally acclaimed gardens to the general public. “Bloedel Reserve exemplifies how a unique, local attraction can be marketed to attract visitors from around the region and the world to visit the Kitsap Peninsula,” said Patricia Graf-Hoke, Executive Director, KPVCB. Attractions like the USS Turner Joy, Point-No-Point United States Lighthouse, Chief Seattle’s Grave, and natural environments, all contribute to our regional identity and make the Kitsap Peninsula a yearround destination. Graf-Hoke, added. Other award recipients include: • 2010 Hospitality Front-Liner of the Year, Debbie Holt, Poulsbo Inn • 2010 Visitor Center Volunteer of the Year, Bobbie Fahy, Poulsbo Chamber • 2010 Inn Keeper of the Year, Jack Edwards, Baymont Inn & Suites in Bremerton • 2010 Bob Morrisey Lifetime Achievement Award, Jack Harrington, presented by Mr. Morrisey’s daughter; • 2010 Community Partnership Award, Anji Sell, President, Board of Directors, Silverdale Chamber of Commerce; • 2011 President’s Circle Award, Bill Mahan. “We are honored to present the 2010 tourism awards to individuals and organizations dedicated to working together to promote our region and serve visitors and planners that select the Kitsap Peninsula,” said Robinson. For more information, please visit www.VisitKitsap.com.

Bremerton Area Chamber names Thunderbird Award recipients


Local businesses experimenting with QR codes By Rodika Tollefson Bryan Garrett likes to use gadgets, so he’s been “playing” with various ideas to use for his new business, Kitsap Errand Runner. Recently, he decided to experiment with a growing techy trend called QR codes — barcodes that can store large amount of data that can be scanned with a smartphone. “I have seen QR codes floating around and didn’t know what they were,” said Garrett, who launched his business a year ago. When he learned more about what they do, however, it didn’t take long for him to embrace the idea. In March, he added sixinch decals with a QR code to his business truck, one on each side and one on the tailgate. When someone scans it, the code pulls basic contact information including his business name, phone number and website. The person can then store that “vCard” in the phone’s address book. “I got to thinking about it, my truck has my phone number and web address on it, so if I can get one of those QR codes, why not put one on the truck so people can scan it and get all that information on their phone,” he said. “It’s a lot easier for them and it’s great for me. It’s a real easy way for people to get information.” Various websites offer free QR code creation, and there are also paid services that

offer analytics and tracking. Garrett said he’s tried to create one himself but it was too confusing, so instead he went to the person who told him about them in the first place, the owner of Minuteman Press in Silverdale. Garrett had just started using the bar code in March and was already receiving positive feedback, he said. “Now I nee d to figure out what other avenues I can use to get the brand of Kitsap Errand Runner out in the community using this technology,” he said. Printing Services in Port Orchard is among the local businesses adopting the idea. Owner Brad Potter said they’ve been watching the technology, which has been popular in Japan, for several months. A few months ago, they started adding QR codes to their own business cards and other materials, and have been offering a special package to businesses interested in trying them out. His son, Nate Potter, who manages the business, said the various code generators have different capabilities so they find the one that’s most appropriate for the type of information the customer wants to encode. He said the most common uses currently is for vCards and links to promotions, Facebook pages and similar. “The way to think about it is like a hyperlink you can have on your printed materials,” he said. “It’s a way to integrate your

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18 Kitsap Peninsula Business Journal•KPBJ.com April 2011

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web services with your print materials, and you can drive people to specific things (via links).” Once created, the information in the code cannot be changed, but users can redirect the links to new information. Nate Potter said there’s many possibilities for the use — in Asia, for example, bus stops with QR codes contain route information. Restaurants could use the codes for menu details, Realtors could have them posted at a property for sale and link to things like MLS details or virtual home tours, and so on. “It’s still in the beginning mode — people are seeing it more of a curiosity but it will become more common,” he said. “It does add another dimension to the marketing.” The codes can only be read by

smartphones but the number of cellphone users who own smartphones has been steadily on the rise. (A study by Pew Research Center last fall estimated that about 43 percent of adult cellphone users had a phone that can download apps, though on the flip side, only a third of them actually downloaded an application for use). Brad Potter said Printing Services is trying to stay on the cutting edge, so his goal is to educate his customers about the benefits of using technology like QR codes to generate more business. “A year from now, everyone will do it but right now, we have to explain it,” he said. “It’s going to become mainstream.”

Apple unveils iPhone, iPad subscription policy By Dana Wollman Apple Inc. announced a subscription system for buying newspapers and magazines on iPhone and iPad applications, making it easier for publishers to mine the popular mobile devices for more revenue. The update aenables publishers to sell subscriptions by the week, month, year or other period of time, instead of asking readers to buy each issue separately. The added convenience promises to help publishers sell more digital copies as they look to smart phones and tablet computers to replace some of the revenue that has disappeared over the past few years as readers and advertisers migrated from print editions. But publishers won’t be allowed to automatically collect personal information about people who buy subscriptions through the Apple apps. That data is prized by publishers because they use it for marketing purposes. Instead, subscribers who sign up through an app on an Apple device will be given the option to share their information with publishers, a choice most people don’t make. If people don’t share their information with publishers, Apple will still hold onto it, though it will not pass it on to the publishers or other third parties. Time Inc., whose magazines include Sports Illustrated, People and Time, applauded Apple for allowing publishers to sell app subscriptions, but said it still has questions about access to customer information. Sports Illustrated, for one, already has worked out deals to sell subscriptions with access to customer data on computer tablets running on software made by Apple rivals Google Inc. and Hewlett-Packard Co. Apple will take its standard 30 percent cut from all app and content sales made in its iTunes store, which peddles a variety of music, movies, games and e-books. This new subscription system also applies to video and music services — for instance, the app for Netflix. Content providers that don’t want to automatically give Apple a slice of the revenue can try to sell subscriptions outside the app, too. One way to do that would be through the Web browser, although that might prove too much of a hassle for people already used to buying apps, music and other things on iTunes. Apple is insisting the financial terms of the digital subscriptions sold outside the app be no better than those offered in the iTunes store. And people must have the option to buy subscriptions within iTunes, if they want. “We believe that this innovative subscription service will provide publishers with a brand new opportunity to expand digital access to their content onto the iPad, iPod touch and iPhone, delighting both new and existing subscribers,” Apple CEO Steve Jobs said in a statement. Jobs, a cancer survivor, is on medical leave but continues to serve as chief executive. Apple’s new subscription policy follows News Corp.’s launch of the first iPad-only newspaper, The Daily, last month. Its subscribers are charged through iTunes, making it the first iPad app to take advantage of this subscription feature. More newspapers are focusing on digital devices because their biggest source of revenue, print advertising, has plunged during the past four years. Digital advertising has been steadily rising, but those increases have only made up for a fraction of the losses on the print side.Subscriptions to print editions also have been dropping in recent years as more people turned to the Web to get news and other information for free. In stark contrast to publishers, Apple has been thriving. The company, based in Cupertino, Calif., generates more than $65 billion in annual revenue and boasts a market value of $330 billion — second only to Exxon Mobil Corp. among U.S. companies. Apple now sees an opportunity to get even richer from these so-called in-app purchases. As part of its effort to ensure it gets a cut, Apple recently rejected Sony Corp.’s e-book reader app for the iPhone because it doesn’t give people the chance to buy books without leaving the app for a website. By insisting on an in-app purchase option, Apple believes it is making sure people using its gadgets get a familiar experience every time they buy something — a new level of a video game or a new issue of a magazine — through an app. Until recently, Apple has not enforced this rule universally.


April 2011 Edition

Events And Activities Wednesday, April 6th Auction Committee, 12:00 p.m. Los Cabos-Silverdale Kitsap HBA Remodelers, 4:00 p.m. Thursday, April 7th Developer’s Council, 7:30 a.m. Friday, April 15th Builder Breakfast-Mayor Becky Erickson, 7:30 a.m. Taprock Grill Wednesday, April 20th Auction Committee, 12:00 p.m. Los Cabos-Silverdale

Thursday, April 21st 1:30 p.m. Coffee & Dessert w/Attorney General Rob McKenna Amy’s on the Bay Please RSVP to HBA HBA SPRING FLING SOCIAL 5:00 p.m. McCloud’s Bar & Grill Please RSVP to HBA $5.00 Admission Friday, April 22nd HBA OFFICE CLOSED Wednesday, April 27th Auction Committee, 12:00 p.m. Los Cabos-Silverdale Thursday, April 28th Executive Committee, 2:00 p.m. Government Affairs Cmte., 2:30 p.m. Board Meeting, 3:30 p.m.

APRIL is the National Association of Home Builders’; New Homes Month The lack of movement in the housing market for the last few years is creating pent up demand for housing. The consistently low interest rates are holding affordability in a solid position for the median income earner. Combine all this with the price reductions in recent months and buyers may experience the opportunity of a lifetime for purchasing their home. Waiting too long could be a mistake since the nation is lagging behind in the development of land and the construction of new housing. NAHB estimates that over 16 million homes will need to be built in the next 10 years simply to keep pace with demand. Waiting too long to purchase could mean paying higher interest and a higher overall price due to the affect of supply and demand pressure. The Home Builders Association can help new home buyers find qualified lenders, builders, or real estate professionals for the exciting adventure of searching for that new home. Members of the public are encouraged to call the HBA at 360-479-5778 or visit our website at www.kitsaphba.com for a list of our members. The Kitsap Housing Coalition also offers first time home buyer seminars as well. They are a local collective and coordinated voice providing leadership, education, and information on housing resources within Kitsap County and neighboring communities and advocate on issues that affect us locally. To find out when their next First Time Homebuyer seminar is, or to reach a member of the coalition for information, please visit their website at www.kitsaphousingcoalition.org. The market is showing some signs of improvement that buyers should take note of. In March, NAHB’s Housing Market Index (HMI) showed an improvement in builder confidence, bringing it on par with a level not seen since May 2010. Our recent Peninsula Home and Garden Expo was well attended and the builders in the Expo felt positive about the interest level of attendees. Don’t miss your opportunity to enjoy the benefits of home ownership if it something you want for your situation. Kitsap County offers home buyers every kind of lifestyle, from the single family home on a large piece of property to the urban condominium close to transit, shops, nightlife and dining. There are excellent schools throughout our County and a housing product in each community for every budget. The Home Builders Association works very hard on behalf of our members, non-members, and the public, every day to try to control unnecessary regulation, improve efficiency of existing regulation and offer all interested parties access to important industry training. When looking for a builder or any related service, the best first place to look is at the Home Builders Association of Kitsap County. Our members set themselves apart by investing in membership in a professional trade association. April is New Homes Month and we look forward to working with the Kitsap Community to connect buyers with our member builders, remodelers, lenders, real estate professionals, and all other housing related services.

2011 OFFICERS President . . . . . . . . . . . . . . . Justin Ingalls, RCS First Vice President . . Wayne Keffer, CGR, CAPS Second Vice President . . . . . . . . Robert Baglio Treasurer . . . . . . . . . . . . . . Randy Biegenwald Secretary . . . . . . . . . . . . . . Dee Coppola, CGA Immediate Past President . . Ron Perkerewicz

2011 BUILDER & ASSOC. DIRECTORS Derek Caldwell • Karla Cook • John Leage Robert Lubowicki • Judy Mentor Eagleson Jim Way, CGB • Jason Galbreath • Kevin Hancock Leslie Peterson, CGA • Shawnee Spencer

2011 STATE DIRECTORS John Armstrong • Robert Baglio • Derek Caldwell Lary Coppola • Walter Galitzki • Brent Marmon Gale Culbert, CGR, CGB, GMB Wayne Keffer, CGR, CAPS • Greg Livdahl

2011 ALTERNATE STATE DIRECTOR Robert Coultas • Rick Courson

LIFE STATE DIRECTORS Bill Parnell

2011 NATIONAL DIRECTORS Robert Baglio • Justin Ingalls, RCS Wayne Keffer, CGR, CAPS

2011 ALTERNATE NATNL. DIRECTORS David Smith • Mikael Brown • Jeff Coombe

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

2011 COUNCIL & CHAIRS Build a Better Christmas. . . Randy Biegenwald Built Green . . . . . . . . . . . . . . . . Walter Galitzki By Laws & Nominations . . . Ron Perkerewicz Developers Council . . . . . . . . . . . . . Norm Olson Golf Classic . . . . . . . . . . . . . Shawnee Spencer Govt. Affairs Cmte. . . Wayne R. Keffer CGR, CAPS HBA After Hours . . . . . . . . . . . . . . . . . . . . . . . . . . . TBD Remodelers Ccl Chair. . . David Godbolt, CGR, CAPS Membership . . . . . . . . . . . . . . . . Robert Baglio Parade of Homes . . . . . . . . . . . . . Dee Coppola Peninsula H&G Expo . . . . . . . . . Melvin Baird Peninsula H&R Expo . . . . . . . . . . . . . . . . . TBD

HBA STAFF Executive Vice President . . . Teresa Osinski, CGP tosinski@kitsaphba.com Administrative Coordinator . . . Melissa Greil info@KitsapHBA.com Events & Administrative Assistant . . Toni Probert hbaevents@kitsaphba.com

Home Builders Association of Kitsap County 5251 Auto Center Way, Bremerton, WA 98312 360-479-5778 • 800-200-5778 FAX 360-479-0313 www.KitsapHBA.com

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April 2011 Edition

Depending on the articles that are released, or the ones Justin you choose to read, you can Ingalls always find a different story. With that being said I’m a glass Kitsap Trident Homes full kind of guy, so I want to 2011 President provide you with some of the positives regarding our industry and our membership. I believe a positive message can go a long way in creating a quality work environment, which can then be spread through our personal lives and our community. There have been reports that the US unemployment appears to be improving with the rate dropping in the first week in March to 8.9%. According to the US Census Bureau release this January, private residential construction spending is up by 5.3% compared to December 2010. The rise was mainly driven by the remodeling sector, which rose by 10.5%, and coincides with a rise in existing home sales sinc e August. NAHB has done research that shows owners have a tendency to make alterations and additions soon after purchases to modify homes to their wants and needs. Thus, home improvement spending follows a similar trend to existing home sales. Single-family spending rose by .8%. While the increase may seem slight, it has been inching up since November. The homebuyer tax credit program had a great influen ce on residential construction over the past year. There were strong gains in expenditure in both single — family construction and remodels prior to the conclusion last April. Of course we had a sharp decline in the months following. The tax credit and first time buyer incentive programs provided some real peaks and valleys in our industry relating to building and sales. On a county level, our overall permit totals are up for January and February from last year by 60, from 160 to 220. These numbers only reflect Kitsap County and not all the local jurisdictions. Looking at only a few of the commercial and residential categories for new construction, remodels and tenant improvements the totals are 102 in 2010 compared to 103 in 2011. In conversations I’ve had with different builders, remodelers and designers, there is growing optimism based on more discussion of potential projects with clients. Our pending and closed home sales are up from the start of 2011. If you were to combine the pending and closed home sales, 47% are distressed properties. While the residential inventory is a tick up since the start of the year, it is down about 9% compared to 2010 and that looks to be positive as we move into the spring and summer months. Currently membership is less than it was at this time in 2010, however we have welcomed 10 new members since January 1, and that’s 8 more than we did in the same period last year. This past March the Home and Garden Expo was a great success and the booths were sold out weeks in advance. Thank you to all of you who participated and to those who attended, I hope you found some value from the event, and you continue to joins us in the future. Also in March we had a Builder’s Breakfast featuring Port Orchard Mayor, Lary Coppola. It was hosted at Hi Joy Bowl and was well attended. Events like this are another great opportunity to get face time with another one of your local political leaders in an informal setting. We continue to be busy planning opportunities to get our members together including a meeting with Attorney General Rob McKenna, a “Spring Fling” evening social event and a builder breakfast with Poulsbo Mayor Becky Erickson in April, our annual Auction at Kitsap Golf and Country Club in May and a family picnic in August. For more information on these upcoming events, and more, contact staff at the HBA Office. I set out on a mission this month to write a positive letter to the membership, and I hope you found just that. I am aware that the current economic times still provide us with a variety of challenges. Let’s continue to work together and do business with a member and view these challenges as opportunities as we move forward.

The Home Builders Association held its 29th annual Home and Garden Expo and it was a great CGP success! This year, we sold out the buildings weeks in Executive advance of the show and Vice President began developing a waiting list of vendors interested in getting in. Ticket sales to the public were brisk on Friday and Saturday, both days setting high points for us over recent years. Much of the success goes to the tireless efforts of ou r committee members. I want to personally thank the following: HBA President Justin Ingalls, Kitsap Trident Homes; Expo Chairman Melvin Baird, A Better Crawl; Nicole Cobb, Kitsap Sun; Stacie Cooper, Kitsap Sun; Merlyn Lehmkuhl, Wave Broadband; Don Nelson, Habitat for Humanity; Dave Revis, Olympic Wiring; Gina Schulz, Strategy Real Estate Inc; Tom Taylor, Costco Wholesale; Jim Ullrich, Wild Birds Unlimite d; and Ardie Villiard, Heritage Builders. This event would not be possible without their support. Another important group to thank is our sponsors. Sponsorship dollars allow the HBA to improve the financial benefit of the show to the HBA. The support of our sponsors is so important. Please do business with these important supporters: Kitsap Sun, Kitsap Credit Union, and Wave Broadband. Finally, thanks to all the vendors and members of the public that participated and did their part to keep commerce moving in Kitsap County. The HBA continues to advocate on behalf of the construction industry as a whole; both residential and commercial. While we are named for home builders, our interest is in all construction arenas and the economic benefits construction brings to our community. As stewards of environmentally sensitive construction through our Built Green program and our outreach to bring regulation up to speed on the value of low impact development, as well as making our office site a showcase for these techniques, the Home Builders Association of Kitsap County, and its members, are the resource for all things construction. This outreach is for the professional industry but also for the public. Owning a building of any sort isn’t always easy and knowing how to get the help you need to maintain the structure is important. The Home Builders Association is open 5 days per week (8 a.m. to 5 p.m.) and all our members are also listed on our website at www.kitsaphba.com. Consumers are encouraged to call us or visit our website for helpful information. We also encourage everyone to verify with the Department of Labor and Industries that the contractor they are doing business with is properly registered, insured and bonded. We look forward to helping the public every day, as they seek information about contractors and services they need to solve their problems. We are seeing an up-tic in the membership in the first quarter of 2011 and look forward to that trend continuing through the year. Members, please reach out to other members when looking for services. If you’re regularly working with a subcontractor that isn’t a member, ask them to join. Members should do business with other members. This year, the leadership of the HBA has elected to hold the annual dinner and auction to benefit the general operating fund of the Home Builders Association. Historically, proceeds from this annual event have gone to support the Affordable Housing Council of Kitsap County. However, the lagging economic situation makes it a good year to use this well established and fun event to raise money for a cause most can agree is important; the Home Builders Association. I hope each of our members takes the time to sponsor, donate, and attend this great fundraising event. We need your support. Please call me if you have any questions about h ow you can help the HBA continue to help you.

Teresa Osinski


April 2011 Edition

Government Affairs Committee Wayne R. Keffer, WRK Construction, Inc. 2011 Chair When I was a kid I remember doing dot-to-dot pictures. They were cool (sort of) by simply using the rules that were established, connecting the dots labeled 1,2,3,4, etc., in order it resulted in a picture that made sense. I bring this up because I was driving on Central Valley road the other day not too far from my home and almost ran off the road when I was distracted by the fact that there was curbing and sidewalk being installed on a road that has no curb or sidewalk going either way for miles. These dots don’t add up to a picture that makes sense. I can only assume this is being required because of zoning or some other “one size fits all” thinking. No doubt the added cost to develop the land will eventually be added to the cost of the home(s) and further push them out of affordability for some buyer(s). My question is who is it that decided common sense should be tossed aside and instead required sidewalks to nowhere? I would like to thank Art Castle, Doug Frick and his staff for coming to my home for Low Impact Development (LID) workshop/training. They are a knowledgeable and dedicated group of folks. As a remodeler my understanding of stormwater and the rules around it is fairly limited; however, I am impressed with the Low Impact Development Manual. I was very surprised that a fairly flat lot with seemingly little required mitigation would force engineering at a cost $7,500-$9,000. This is on top of the cost of the required Site Development Activity Permit (SDAP). In my naïveté I believed that the LID Manual that has been adopted by the county and the cities, and the Spreadsheet Modeling Tool would be a prescriptive path to compliance. The county and HBA have spent countless hours and resources to create the manual and modeling required to creatively develop land in a smart, environmentally friendly, and affordable way. By not going the extra step of creating a prescriptive method we all lose out on the power of the LID standards. I would like to encourage the county and HBA members to work toward a path that allows a prescriptive method for storm water mitigation instead of the cost associated with engineering on residential projects. Succeeding at this would remove unnecessary costs to the eventual home owner. It would also encourage our economy due to the savings associated. I look forward to learning more about stormwater and its impacts on home ownership in Kitsap County. Remember to participate in our monthly Government Affairs Committee meetings. All HBA members are encouraged and welcome to attend. Worried about the effort to mandate higher fire flow to new construction? We will be updating the committee on April 28th about the current effort of the County Fire Marshal and some other local fire officials to force another additional cost onto new housing. Not an HBA member? Weigh in directly with the Board of County Commissioners.

The Member Advantage! Are you taking advantage of all that you can from your HBA membership? Not a member? Join today and begin enjoying these and other member-only benefits. Call the HBA office to get more information about how to make the most of your HBA investment. Our office is open Monday through Friday from 8 a.m. to 5 p.m. You can reach us at 360-479-5778 or via our website at www.kitsaphba.com.

MEMBER ADVANTAGE AT A GLANCE

TWO BIG EVENTS — APRIL 21, 2011 Attorney General Rob McKenna visiting with the Home Builders Association Members Please join us at Amy’s on the Bay in beautiful downtown Port Orchard for dessert and coffee with Rob McKenna at 1:30 p.m. Wonder how his office affects your industry? Come to this event and learn more.

Time To Have Fun! HBA Spring Fling Social! Join us for this just fun event at McClouds Grill House & Saloon. The fun is from 5 p.m. to 7 p.m. RSVP to the HBA. Admission is just $5.00.

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April 2011 Edition

Welcome New Members Aaron Murphy ADM Architecture LLC 532 NE Matson St Poulsbo, WA 98370 (360) 440-8475 Email: admarchitecture@hotmail.com Sponsor: Randy Biegenwald, Randy Biegenwald CPA PS Trish Mitts Estes Builders 235 E Washington St Sequim, WA 98382 (360) 683-5756 Fax: (360) 681-7127 Email: patricia@estesbuilders.com Sponsor: Wayne Keffer, Wayne R Keffer Construction Jerry Vergeer/John Schumacher GSV Development LLC PO Box 1028 Tracyton,WA 98393 (360) 373-6948 Email: gsvjr@comcast.net Sponsor: Randy Biegenwald, Randy Biegenwald CPA PS Frank Knox – Knox Design 6818 Bentley Cir NE Bremerton, WA 98311 (360) 692-6663 Fax: (360) 692-6663 Sponsor: Bill Carter, Olympic Wiring Inc

Rick Neumann NeuBuilt Homes 1830 112th St E Ste A Tacoma, WA 98445 (253) 539-0086 Fax: (253) 582-6801 Email: rneumann@neubuilt.net Sponsor: Robert Baglio, The BJC Group Inc Bill Ullrich NW Cabinet & Refacing Inc 2518 E 16th St Bremerton, WA 98310 (360) 415-9999 Email: bill@nwcabinet.com Sponsor: Jim Ullrich, Ullrich Contracting Inc Jim Theros Theros Homes Inc PO Box 10628 Bainbridge Island, WA 98110 (206) 842-4545 Fax: (206) 842-4546 Sponsor: Robert Baglio, The BJC Group Inc Thomas Cain Wing Point Construction 321 High School Rd NE Ste D3 # 174 Bainbridge Island, WA 98110 (206) 842-1670 Fax: (206) 319-1527 Email: wingcon@q.com Sponsor: Justin Ingalls, Kitsap Trident Homes Inc

A Spike is a member who sponsors new members into the association. The association loses a number of members each year from non-renewal due to changes in business circumstances. This membership loss must be made up with new members if the association is to continue; without active Spikes our association would not exist.

LIFE SPIKES CREDITS Jim Smalley . . . . . . . . . . . . . . . . . . . . . . . . . 380.5 Tim Burke . . . . . . . . . . . . . . . . . . . . . . . . . . . . 318 Gale Culbert . . . . . . . . . . . . . . . . . . . . . . . . . . 266 Dee Coppola . . . . . . . . . . . . . . . . . . . . . . . . 243.5 Kerry Chamberlin . . . . . . . . . . . . . . . . . . . . . 237 Dale Armstrong. . . . . . . . . . . . . . . . . . . . . . 235.5 Bill Parnell . . . . . . . . . . . . . . . . . . . . . . . . . . 218.5 Michael Hancock . . . . . . . . . . . . . . . . . . . . 187.5 Andy Mueller . . . . . . . . . . . . . . . . . . . . . . . . . 185 Douglas Woodside . . . . . . . . . . . . . . . . . . . . . 182 Kevin Parnell . . . . . . . . . . . . . . . . . . . . . . . . . 176 Bob Helm . . . . . . . . . . . . . . . . . . . . . . . . . . . 175.5 John Armstrong. . . . . . . . . . . . . . . . . . . . . 150.75 Rick Courson . . . . . . . . . . . . . . . . . . . . . . . . . 149 James Ingalls . . . . . . . . . . . . . . . . . . . . . . . . . . 144 Randy Biegenwald . . . . . . . . . . . . . . . . . . . 126.5 Greg Livdahl. . . . . . . . . . . . . . . . . . . . . . . . . . . 95 Robert Lubowicki . . . . . . . . . . . . . . . . . . . . . 91.5 David Smith . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 Michael Brown . . . . . . . . . . . . . . . . . . . . . . . 85.5 Larry Ward. . . . . . . . . . . . . . . . . . . . . . . . . . . 82.5 Jeff Coombe . . . . . . . . . . . . . . . . . . . . . . . . . . 77.5 Dori Shobert . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Lary Coppola. . . . . . . . . . . . . . . . . . . . . . . . . 54.5 Rick Cadwell. . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Joanne Lockwood . . . . . . . . . . . . . . . . . . . . . 42.5 Charlie Mackall . . . . . . . . . . . . . . . . . . . . . . . . 42 Donna Milner . . . . . . . . . . . . . . . . . . . . . . . . 41.5 Cheryl Gallup . . . . . . . . . . . . . . . . . . . . . . . . 39.5 Scott Henden . . . . . . . . . . . . . . . . . . . . . . . . . 38.5 Ron Perkerewicz . . . . . . . . . . . . . . . . . . . . . . 37.5 Larry Elfendahl . . . . . . . . . . . . . . . . . . . . . . . 35.5 Justin Ingalls . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Wayne Keffer . . . . . . . . . . . . . . . . . . . . . . . . 33.75 Steve Crabb . . . . . . . . . . . . . . . . . . . . . . . . . . 29.5 Steve Brett . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Barry Keenan . . . . . . . . . . . . . . . . . . . . . . . . . . 26

SPIKES CREDITS Brent Marmon . . . . . . . . . . . . . . . . . . . . . . . . . 24 Dave Revis . . . . . . . . . . . . . . . . . . . . . . . . . . 23.75 Jeff Swan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.5 Robert Coultas. . . . . . . . . . . . . . . . . . . . . . . . 23.5 AnnaLee Todd . . . . . . . . . . . . . . . . . . . . . . . . . 15 Joe Gates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.5 Darren Devitt . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 SPIKE CANDIDATES CREDITS Robert Baglio . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Walter Galitzki. . . . . . . . . . . . . . . . . . . . . . . . . 3.5 Brad Reid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Corey Watson . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Derek Caldwell. . . . . . . . . . . . . . . . . . . . . . . . . . 3 Frank Murr . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Jim Heins. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Judy Granlee-Gates . . . . . . . . . . . . . . . . . . . 2.75 David Godbolt . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Jon Brenton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Karen Alyea . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Len Mallory . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Robert Simonoff . . . . . . . . . . . . . . . . . . . . . . . . . 2 Ted Bowman . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Al Timm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 Brett Warner . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 Daryl Hemley . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 Ken Holmgren. . . . . . . . . . . . . . . . . . . . . . . . . 1.5 Mark Khulman . . . . . . . . . . . . . . . . . . . . . . . . 1.5 Michael Glading . . . . . . . . . . . . . . . . . . . . . . . 1.5 Rob Smallwood . . . . . . . . . . . . . . . . . . . . . . . . 1.5 Ron Galla . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 Ron House . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 Daniel Ryan . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 James Pickett. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 John Leage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 John Ramsdell . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Judy Mentor Eagleson . . . . . . . . . . . . . . . . . . . 1 Ken Orlob . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Leslie Peterson . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Mike Orcutt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Molly McCabe . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Shawnee Spencer. . . . . . . . . . . . . . . . . . . . . . . . 1 Steve Johnson . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Steve Morrison . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Bill Carter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Jim Ullrich . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

ATTENTION MEMBERS! The HBA relies on you and needs your support for this year ’s annual dinner and auction. In the past, this event has generated important money to support the political action committee of the HBA. This year, the leadership of the HBA has elected to make this a fundraiser to benefit the general fund balance of the HBA itself. This will be the same great fun we always have and all your generous contributions will go to benefit our important association. Please call the HBA with your sponsorship, donation, and event registrations today! Auction will be May 13th, at the Kitsap Golf and Country Club.

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Quadrant Homes changes strategy By Teresa Burney For years Quadrant Homes’ "More House Less Money" marketing focus worked well for the Washington state builder. Then last summer, after some intensive market research, executives discovered things had changed. “We realized, in spite of some recent innovations to product, that we were losing ground,” recalled Ken Krivanec, Quadrant’s president. So the Puget Sound-based builder did what it has done since the late '90s, embark on some serious market research beyond the regular weekly feedback from buyer surveys. “What we did in July and August was under take a very large study to try to really understand perceptually what the market was thinking about Quadrant,” said Krivanec. The good news was that Quadrant, a division of Weyerhaeuser, has a very high brand awareness score in the area. The less happy news was that the buyers wanted more than a lot of house for a little money. “What happened was this buyer became more discerning as the market started to turn down,” said Krivanec. “Their expectations changed. What we found was that buyers wanted more choice.”

And, as it turns out, buyers are willing to sacrifice some house size for getting a home that they want, personalized their way. As a result of the research, Quadrant immediately began to shift the company’s focus away from “More House Less Money” to “Built Your Way” in what the company calls an “Evolution to a Revolution.” “'With More House Less Money,' we made all the choices,” said Krivanec. “They can do that now with 'Built Your Way.' … In the process if they say, for example, ‘We want to move this wall, move these windows, change the floor break.’… We will let them do that. That’s a level of customization we haven’t done before.” Quadrant also upped the number of interior choices it offers in components such millwork, hardwood flooring, and kitchen islands, to meet a desire for expanded and higher-end choices. It also changed some home elements to emphasize areas buyers said were more important to them, such as the laundry room. “Our [average] square footage is down year-over-year,” said Krivanec. “I think [buyers] are making the tradeoff for the ability to spend more money on a house

that becomes very personal to them. I think they’ll sacrifice [square footage] for that.” The research also showed that buyers wanted more details and choices about that in exterior design, so the company jettisoned some old exterior plans and created some new ones with more character detail. Buyers said energy efficiency was important, so Quadrant committed to building all new homes to the new 2011 Northwest Energy Star standards. And to help quash buyers' fears about not liking their homes when they are done, Quadrant added the promise that if buyers don’t like their home when it’s finished, they don’t have to buy it. While one might think that increasing the level of potential customization to homes would cause havoc to the production calendar of a company such as Quadrant, which practices even flow construction methods, finishing a home in 54 working days, Krivanec said it hasn’t. “What’s really been great about this is that all the great work we’ve done creating the lean manufacturing system is paying off,” said Krivanec. “We realized that we can actually let people make changes to their homes in a customized way” without affecting the even flow process.

After the research was finished last summer, Quadrant immediately began retooling its existing mode homes to reflect the new options and building new ones from scratch. In January, coinciding with the beginning of the spring selling season the company launched its new branding campaign in earnest. “When we turned this switch on and really started presenting our brand and getting it out into the community, it really improved,” said Krivanec. “I am really enthusiastic.” (Editor’s Note: Teresa Burney is a senior editor for Builder Magazine.)

Republic Mortgage Home Loans welcomes Conners to its Silverdale office Republic Mortgage announces the addition of Christine Conners to its Silverdale office, located at 9615 Levin Road SE, Suite 103. She has experience in customer service, retail banking and management and has worked in the financial industry for 17 years. Reach Connors at (360) 698-0153.

Partners In Success In an effort to continue to offer cutting edge products and services along with quality and competitive technology applications, it is our pleasure to invite you to visit our newly designed website.

Providing superior customer service and professionalism to every real estate transaction. SILVERDALE OFFICE 360-692-4141 • 800-464-2823 2021 NW Myhre Road, Suite 300 Silverdale, WA 98383

BAINBRIDGE ISLAND OFFICE 206-842-2082 • 800-884-7636 921 NE Hildebrand, Suite 200 Bainbridge Island, WA 98110

PORT ORCHARD OFFICE Title Insurance Escrow Services Real Estate Resources

360-895-7799 1382 SE Lund Avenue, Suite 1 Port Orchard, WA 98366

www.pnwtkitsap.com

April 2011 Kitsap Peninsula Business Journal•KPBJ.com 23

www.PNWTkitsap.com


WPC wins an AGC of America’s Aon Build America award

Karin Kay Properties celebrates a successful 2010

The Seal Observation Facilities project located on Alaska’s St. Paul Island was one of the most significant construction projects of 2010, the Associated General Contractors (AGC) of America announced on March 23. As a result, Wade Perrow Construction LLC (WPC) was one of 20 firms to receive the association’s Aon Build America Award. WPC, based in Gig Harbor, won for best renovation of a federal and heavy construction project, which involved repairing a series of towers and walkways the National Oceanic and Atmospheric Administration uses to observe and count the seal population on St. Paul Island, Alaska. This project required replacing seven towers and 1,000 feet of walkways in the small window of time the seals migrate from the island. Despite average daily temperatures below zero, strong winds and frequent whiteout conditions, the WPC team completed the project with zero accidents and no time loss injuries. The Aon Build America Awards recognize the nation’s most significant construction projects. A panel of judges, representing all areas of construction, evaluated over 115 projects this year, assessing each project’s complexity, use of innovative construction techniques and coordination with partners, among other criteria. The awards, which were announced during the association’s annual convention in Las Vegas, are considered by many to be the most prestigious recognition of construction accomplishments in the U.S.

The Legacy Group to sponsor business event on April 28

24 Kitsap Peninsula Business Journal•KPBJ.com April 2011

The Legacy Group in Silverdale is sponsoring a business event called “Healthy, Wealthy and Wise” which will benefit both the business community and the hungry in Kitsap County. Attendees will have the opportunity to network and then glean useful information from Scott Rerucha, Legacy Group’s CEO who will speak about how to be successful in an ever-changing, turbulent market. Frank Reed, author of a book called Dollars and Sense, will speak, teach and inspire people to be equipped to manage their money, rather than their money managing them. Reed’s message is that debt is not your destiny. Lesli Dullum-Tutterrow, co-author of

Ryan Christian Poulsbo 360-394-5700

Your Ultimate Sales Force, will present, “Grow yourself; Grow your business - How to bring your best self into the marketplace.” The event will take place, Thurs., April 28, from 5:30 to 8:30 p.m. at the Kitsap Conference Center, in Bremerton at Harborside. The cost of $10 allows the ticket hold and a guest to attend and every dollar collect will go directly towards FeedKitsap, a new non profit, which distributes money to several local charities. Food will be provided, also those that bring a nonperishable food donation will also be eligible for a prize drawing. To register, visit www.Legacyg.com/healthywealthywise or call Cameron at the Legacy Group at (360) 698-6440 for tickets and information.

Phil Cook Bremerton 360-813-0805

Gena Black Silverdale 360-337-4309

Bank of America, N.A., Member FDIC Equal Housing Lender © 2011 Bank of America Corporation. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. 00-62-0112D 01-2010 AR70163

As her brokers and staff have come to enjoy, Karin Kay, owner of Karin Kay Properties in Bremerton, recently treated all to a celebration of company and personal achievements. Year end statistics were announced and while company sales were reportedly lower than previous years, Kay remained pleased at nearly $15 million in sales.

Member landlords can utilize website with a list of bad tenants A 'Do Not Rent To' website has been created to help landlords worldwide minimize the risks associated with renting to "bad tenants.” Landlords always take risks when renting their properties. However, these risks can be minimized by allowing landlords to see if a potential renter has been added to the list of bad tenants. Landlords are obligated to inform other landlords of the problems encountered when renting properties to certain tenants. If a member landlord would like to know if a candidate is a suitable renter for their property before they hand over the keys, then this site can be a tool for this information. By pre-screening candidates through this site they will find out if the previous landlord experienced any of the following issues: Late Payments, Non-Payment of Rent, Destruction of Property, Theft, Refusal to Vacate Premises, or any other issues a landlord may have encountered. As a member, landlords have unlimited tenant postings and unlimited tenant searches. When posting tenant information, landlords are allowed to enter any comments they feel will best describe their experience with a certain renter. Visit www.donotrentto.com for more information.

Heather Gutierrez Bremerton 360-813-0801

Awards were presented at the company’s sixth annual awards banquet to the following Brokers: Teri Allen and Jammahl Sims were presented The Crystal Award in the Lifetime Achievement Club. Rob Rieder was the recipient of the Sterling Award. Packy Rieder walked away with the award for top listings and sales for 2010. He also received the company’s highest awards for Top Producer and the Summit Award. Karin Kay Properties can be reached at (360) 479-7653 or on the company’s Facebook page at www.facebook.com/karinkayproperties.

Eagle Home Mortgage welcomes Rebecca Clifford Jerry Meneses, branch manager of the Eagle Home Mortgage Bremerton office, announces that Rebecca Clifford, a 17-year industry veteran, has joined the company. “I joined Eagle Home Mortgage for the simple fact that I can give home buyers the best of all worlds.” Clifford said. “Home financing expertise with a local process and a variety of loan programs. Eagle Home Mortgage is customer-focused. A true win-win.” The Bremerton branch is located at 3940 Kitsap Way. Clifford also meets with clients at the Poulsbo office. She can be reached at (360) 271-3676 or via email at rclifford@eaglehomemortgage.com.

Lange completes SRES certification KJ Lange, a managing broker with Windermere Real Estate Westsound in Silverdale, recently completed the approved certification class for an expertise in Seniors Real Estate. An SRES designation from the National Association of Realtors (NAR) gives a Realtor an extra edge for families and individuals in life’s natural transitions. “I view my business as a helping profession. I help people find solutions to life’s challenges and that often involves real estate. Families and couples are so much better off when they makes these plans and decisions together and I hope to be an objective party in that process,” said Lange. “Real estate needs are never just real estate needs.” Educated in Nursing at Valparaiso University, a two year stint as a marketing director for a home health agency helped her become very familiar of the needs of couples and families as they age. “I would be happy if I helped someone stay in their home and remain independent if that’s what is best for them. This type of continuing education continues to sharpen my skills and awareness” she said. “As a Windermere agent, our calling is to truly put our clients first so it fits into our company philosophy.” The SRES course covers the different needs at different stages as we age, types of communities that can serve different activity styles, ways to help pay for the lifestyle desired, and the emotional aspects of some transitions for people. Lange can be reached at (360) 692-6102 or visit her website at www.lifeisgoodinkitsap.com.


Local housing authorities win HUD grants U.S. Housing and Urban Development Secretary Shaun Donovan announced that 31 public housing agencies in Alaska, Idaho, Oregon and Washington will receive $3,598,297 to hire more than 60 coordinators who will link low-income families to education and job training that can put them into the workforce and on the path to economic self-sufficiency. Among those are the Bremerton Housing Authority and HousingKitsap — formerly known as the Kitsap County Consolidated Housing Authority The 31 Northwest agencies are among

Local Realtors earn top honors for second year

the almost 600 announced as receiving some $54 million in Housing Choice Voucher Family Self Sufficiency grants, which enable public housing agencies to work with welfare agencies, schools,

businesses, and other local partners to develop a comprehensive program to help individuals already participating in HUD’s Housing Choice Voucher rental assistance program to increase or gain marketable

Republic Mortgage Home Loans welcomes two to its Silverdale Office Republic Mortgage Home Loans has announced that Patrick Brooks and Sheri Shirk have joined its team at the Silverdale office, located at 9615 Levin Rd, Suite 103. Patrick Brooks Brooks has lived and worked in Kitsap County for most of his life and has a Bachelor Degree from the University of Washington. He has been in sales, customer service and management for 20 years and in the financial and lending industry for 5 years. He has also

taught financial education and provided credit counseling. Shirk has been in the mortgage lending industry for over 20 years. Her experience Sheri Shirk includes custom construction, conventional, FHA, USDA, Washington State Bond and VA Mortgages, as well as teaching First Time Home Buyer classes. Brooks can be reached at (360) 6980438; Shirk at (360) 698-0564.

skills that to obtain jobs that pay a living wage. “Most families prefer independence to dependence,” said HUD Northwest Regional Administrator Mary McBride, “and HUD wants to help them get there. This program is an important, effective tool in helping attain self-sufficiency.” The Bremerton Housing Authority will receive $66,717, while HousingKitsap will get $25,756. The funding allows local housing authorities to hire coordinators (or caseworkers) to link adults in the Housing Choice Voucher program to local organizations that provide job training, childcare, counseling, transportation and job placement.

Kitsap landscape designers win gold medal

New homes coming soon in Port Orchard Karin Kay Properties has announced the reopening of Blackjack Terrace in Port Orchard, with 12 new homes and a new builder. Construction in the neighborhood will commence in March, with pricing starting as low as $204,900. Blackjack Terrace boasts creek-front acreage and nature reserve, with most lots backing up to territorial views, park or trails. All homes will be three or four bedrooms, 2.5 baths and two car garages. James Built Construction plans to “open doors” to affordable homes and chose Karin Kay Properties because of its extensive background in marketing of new homes. For more information contact Karin Kay Properties at (360) 479-7653 or www.KarinAboutYou.com.

Hospital District Office For Sale 2641 CHERRY AVENUE BREMERTON • 1/2 block N. of Harrison Medical Center, within Hospital district • Single level 4,552 SF building • Zoned Institutional • Approx. 34 paved parking spaces • Total site about 37,026 SF • For sale at $846,000

Victor C. Ulsh, CCIM

(360) 479-6900 • (800) 479-6903 www.bradleyscottinc.com

April 2011 Kitsap Peninsula Business Journal•KPBJ.com 25

Kitsap County Realtors Mike and Sandi Nelson of Coldwell Banker Danforth Associates were honored at the company’s annual awards luncheon. The Nelsons received the International President’s Circle Award from Coldwell Banker for 2010 sales production. This honor is given to the top one percent of Coldwell Banker agents in the country. They also received the company’s Top Producers Award for 2010. To earn this achievement they generated the most sold units and the most total dollars sold. This is the second year in a row the Mike and Sandi Nelson have received both these awards for outstanding sale production. Owner/ Broker Dave Danforth said, “The Nelson team is amazing to be able to achieve these numbers even in a down economy”. Mike and Sandi Nelson can be contacted at (360) 265-2777 for further information.

Kate Easton and Megan Pulkkinen, landscape designers in Port Orchard and Bremerton, respectively, won a Gold Medal at the Northwest Flower & Garden Show for the Washington State Nursery & Landscape Association entry, for which they were co-designers along with Lloyd Glasscock of Everett and Kirsten Lints of Duvall. Gold Medals are awarded for excellence in design, plant selection, construction and showmanship criteria as well as consistency with the garden design objectives. The winning garden, “Cook’s Endeavor Returns with Treasure” was inspired by the novel ‘Stowaway’ by ‘Karen Hesse, and illustrates Captain Cook’s first voyage with Sir Joseph Banks, renown botanist who explored many Asian and South Pacific areas. The four design team members bring unique skills and talents to the WSNLA display garden. Easton is the owner/designer at Garden Vision Inc. Since 1991, she’s used her extensive horticultural, ecological, and landscape design knowledge and expertise to design living art with color, texture, sight lines and views. Her work was recognized for landscape design excellence by West Valley College faculty in 1991 and 1992. Pulkkinen is the owner of Megan Pulkkinen Landscape Design, and is an experienced landscape designer, garden coach, and project consultant providing services to residential and commercial clients mainly on the Olympic Peninsula. She has 30 years of experience and continuous education in many aspects of the Horticulture and Nursery Industry. Lints is the owner of Gardens Alive Design, and she uses empowerment, enthusiasm and encouragement in providing supportive and sensible design and consulting services to clients. She uses her extensive plant knowledge to design sturdy yet stunning landscape designs. Glasscock is the owner of Looking Glass Design and brings more than twenty years of garden show design experience to the team. He is a talented landscape designer and consultant specializing in hardscape. Previously, as co-owner of Pacific Stone Company, his work has been honored by the Northwest Flower and Garden Show with awards.


April @ Port Orchard 2011 The Port Orchard Chamber of Commerce is a membership based organization of businesses and individuals working together to promote a favorable local business climate, encourage strong community leadership and support quality of life.

Does membership in the Chamber really work? It does if you are using the Desiree Steffens Port Orchard Chamber Chamber as a way to 2010-2011 President meet other businesses, clients and potential customers in our community. I have been a member of the Chamber for four years. When I started my business I did not have business contacts in the community. I had worked for a national corporation that took me all over the Pacific Northwest, so I did not have time to belong to any organizations or associations. Since joining the Port Orchard Chamber and working my membership by attending the luncheons, the after-hours, local events and volunteering on committees — I have had a return on my membership in many positive ways. Other Chamber members are referring my catering and event planning business to potential clients. Not just to Chamber members, but to family and friends they know. If you are not comfortable approaching other Chamber members at events and functions, have a Chamber Board member or a Chamber Ambassador introduce you to othe rs. It may take a while — people need to become aware of your business and what you offer in our community. They also want to be familiar with your reputation — do you provide good services, will others refer you? You have to allow time and you have to work your membership. Let your Chamber work for you and make every day a special day.

President’s Message

WELCOME NEW MEMBERS

April Business After Hours Tuesday April 26th, 5-7 p.m. @ Cedar Cove Inn Join us at the beautiful Cedar Cove Inn, 228 Seattle Ave in downtown Port Orchard with our hosts Gil and Kathy Michael. Stop by after work to tour this lovely bed and breakfast, have refreshments, network and make new contacts!

SPOTLIGHT ON A MEMBER Julie Tappero/WestSound Workforce Julie Tappero is the President and owner of West Sound Workforce. She has a Bachelor’s Degree in Business Administration and Human Resources. Julie has many years of experience in business operations, human resources and workforce development, having worked for Fortune 500 companies such as Hughes Aircraft Company and Monsanto Company, as well as for medium and small businesses. In 1998, she started her own business, West Sound Workforce, a professional staffing and recruiting firm located in Poulsbo and Gig Harbor. Julie is active in many civic organizations, and serves on numerous boards. She is President of the West Sound chapter of the Human Resource Management Association, President and founding member of the Alliance of Women Owned Businesses, a past president of the Gig Harbor Chamber of Commerce, founding Board member of the Gig Harbor Historic Waterfront Association and is ViceChair of the Kitsap Economic Development Alliance. She is a Rotarian, is a Board member and past chair of the tricounty Olympic Workforce Development Council and was appointed to the state’s Community Economic Revitalization Board (CERB Board) by Governor Gregoire. Julie also writes a monthly article on human resource issues for the Kitsap Business Journal. Julie believes that we all prefer doing business with people we know, and there’s no better way to get to know people and their businesses than by being involved in a Chamber. The Port Orchard Chamber is a great place for this, as the members are particularly friendly and welcoming, and the Chamber offers a good variety of events. I appreciate that the Chamber is focused on proactively helping small businesses like mine grow by bringing in programs and speakers of value, and through their advocacy on our behalf.

Thursday, April 21st, 2011, 11:30 a.m. Location: McCormick Woods Banquet Room Program: Rob McKenna — WA State Attorney General Rob McKenna is serving his second term as Washington’s Attorney General. As Washington’s chief legal officer, he provides legal services to the state, state agencies and elected officials. He has won all three of the cases he has argued before the U.S. Supreme Court, defending voteradopted laws on campaign finance reform, the top-two primary election system and the state public records law. His ongoing priorities are: Making communities safer by leading the state in fighting meth and prescription drug abuse, gang violence, sexual predators and domestic violence; Protecting consumers and businesses from identity theft, internet predators, fraud and high-tech crimes, such as cyber fraud, phishing and spyware; Promoting integrity in government by defending the state’s laws, implementing new performance management initiatives in his office and encouraging open access to government McKenna earned his J.D. from the University of Chicago Law School in 1988, where he was a member of the Law Review. He earned a B.A. in Economics and a B.A. in International Studies, both with honors, from the University of Washington, where he was student body president and graduated Phi Beta Kappa. A national leader, McKenna is president-elect of the National Association of Attorneys General (NAAG) and will become president in June 2011. Meeting reservations are necessary to attend the Chamber Luncheon meetings and can be made online at www.portorchard.com or by calling the Chamber at 360-876-3505. Please make your reservation by April 19th. Membership Luncheons are open to members and non-members. Chamber members pay $20 if prepaid and $22 at the door, non Chamber members pay $22 and must pay in advance.

Chamber Morning Seminar Elaine Jones, Advisor-Kitsap Small Business Development Center Wed. April 13th, 8:00 a.m. Port Orchard Pavilion

Don’t miss this free seminar as the new business advisor for the Kitsap SBDC reviews the programs and assistance available in this region for small businesses. Elaine Jones holds an MBA and an MS in Technology Commercialization from the University of Texas at Austin and has more than 15 years experience in all phases of planning, marketing communications and governmental affairs. Free to Chamber members, reservations not required but appreciated.

Business Showcase, Business After Hours and Best of SK Awards Thursday, May 19th 5-8 p.m. at SK8Town Event Center Reserve your space today at the Chamber’s 9th annual Business Showcase. Showcase your business to other Chamber members, businesspersons, potential clients, customers and to the general public. Exhibitor fee is $100 for Chamber members and $200 for nonChamber members. The Showcase is also the Business After Hours for the month of May AND it is at this event that the 2011 Best of SK Awards will be made. Watch the Port Orchard Independent or go online to the Port Orchard Independent for your Best of SK ballot and nominate your favorite businesses or individuals in 50 categories. Return ballot by April 22nd!

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26 Kitsap Peninsula Business Journal•KPBJ.com April 2011

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Kitsap furniture manufacturer rebrands It’s now simply “Watson” Poulsbo furniture manufacturer, formerly known as Watson Furniture Group, revealed its new brand. The corporate name has been truncated and the Watson logotype has been revised. The brand reveal also includes redesigned logotypes for the Watson subbrands, a refreshed graphic design aesthetic, and new messaging. “After 10 years under the Watson Furniture Group brand, we are shedding the formality,” said Michael Shipley, creative services manager. “Now the contract furniture industry will know us as our customers do, by the short and friendly Watson.” Watson President and CEO, Clif McKenzie, adds “Simplicity is part of our company’s DNA. The new name and logotype clarify our visual identity.” The research, analysis and creation of the new brand was completed by an in-house team of designers, led by Shipley. The process took nearly a year beginning with the March 2010 development of the brand compass — a set of guiding principles crafted by McKenzie; Cia Mooney, vice president of Product Development; and Shipley. According to Shipley, research spanned the spring and summer months and design comps began in October 2010. “The challenge was creating a cohesive identity package that visually conveyed our guiding principles. For us, that meant creating visual cues that evoked dignity, simplicity, and curiosity.” The core brand logotype has undergone the greatest shift losing its formal double-v mark and all uppercase ‘Watson Furniture Group,’ in favor of the simpler, all lowercase ‘watson.’

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As Air Masters, Inc. celebrates its 25th anniversary, owners, Steve Krecker and Mark Timmerman reflect on their journey to such a milestone. In today’s economic climate many believe it’s a celebration just to have made it through these last few years. But Krecker and Timmerman don’t see it quite that way. They believe innovative thinking and the best possible business practices, coupled with superior customer service, have brought them to where they are today. “Our philosophy is the same as it was 25 years ago, do right by the customer by offering quality products with outstanding service and installation and they will stay and refer their friends and family, thus making our business grow,” commented Krecker.

Kitsap Credit Union honors Sarah Bright, first graduate of CU@School Kitsap Credit Union is proud to honor Sarah Bright, financial service representative from its Silverdale Highlands Branch, for the completion of the Credit Union’s two-year intensive internal degree program called CU@School. The program required 60 credit hours consisting of online and classroom course work, workshops/webinars, and a final presentation. For her accomplishment Bright received an award of $1,500 as well as paid time off. Training Manager, Tracy Cunningham stated “This is a wonderful accomplishment and we are all very proud of Sarah. Keep up the good work!”

Timmerman agrees, “Our customer service and installation is the backbone of our business. We strive to educate our customers about installing a high efficiency heating and cooling system that will save them up to 60 percent on their utility bill and creating a more comfortable environment for their family. Our customers appreciate the time we take to educate them, and do a professional r esidential/commercial service and installation in their home or business.” Recognizing the economy they were facing, Krecker and Timmerman, who had been competitors, merged their successful companies, Air Masters and Mark Air, a couple of years ago. They have leveraged the particular strengths of each company to create a firm that’s much stronger then either had previously been, and one much greater t han the sum of its parts. Both Krecker and Timmerman respect each other for their knowledge of different, but specific, segments of the industry, and it’s a partnership that works well. Krecker is a long time industry veteran, and Timmerman is a Business Journal 40 Under 40 Alumni. Krecker and Timmerman have both made it a point to openly thank the people of Kitsap County for supporting their business. They continue to support the growth of local commerce by doing business locally at every opportunity — using local suppliers, and subcontractors — because they know doing business locally is what keeps the Kitsap County business community strong. “We own our economy,” said Timmerman, “and doing business locally is what will keep it strong so we all survive.” In celebrating a quarter of a century in business, Krecker echoed his partner, saying, “The bottom line is, we’re all in this together.”

April 2011 Kitsap Peninsula Business Journal•KPBJ.com 27

In addition to the change in the core Watson brand, the identities for Watson Desking, Magna Design, and Watson Dispatch have been refreshed. A common letterform, stroke weight, and kerning levels the visual appearance of all three sub-brands. According to the Watson creative team, this supports the corporate rebranding strategy twofold: It positions the Watson core brand as the primary ambassador for all sub-brands — Watson Desking, Magna Design, and Watson Dispatch and, creates complimentary sub-brand logos for cohesive promotion in conjunction with industry media and events. Of the new brand identity’s shelf life, Shipley said, “We expect this identity to be ours for some time. A well-thought identity package and I believe this is one, should have a decade longevity at minimum. It’s clean, modern, and speaks to who we are.” For more information about Watson or its products, visit www.watsonfurniture.com.

Air Masters, Inc. celebrates 25th anniversary


2011 Mercedes GL350: Long distance luxury SUV

By Bruce Caldwell If you regularly do business in Spokane, but want to patronize your local filling station the 2011 Mercedes GL350 is the SUV for you. The GL350 Blue TEC turbo diesel V-6 has a 600-mile cruising range and tons of torque to let you breeze over Snoqualmie Pass. If you want to take family and friends skiing the GL350 will carry seven passengers. It’s sure-footed and very safe in the snow.

Walkaround: Styling is clean and handsome. It’s far superior to the boxy Mercedes G-Class and we even prefer it to the M-Class SUVs. Our tester had the optional Capri Blue paint. This dark blue was very classy and befitting a Mercedes. Interior: Interior materials, details, and ergonomics are all excellent. The whole interior has a very upscale look and feel. The gear shifter is a column-mounted toggle lever that works fine after an initial

acclimation period. This position greatly increases room in the center console. Front seat legroom and headroom are both excellent. The steering wheel has a great feel and is very comfortable on long drives. Second row seating is fine for the two outboard positions, but marginal for the middle. Third row accommodations are kid-size. Cargo space is minimal with all seats up, but great with either the third or second and third rows folded down. Under The Hood: The big news for the GL350 is its powerful turbocharged V-6 diesel engine. The 3.0-liter DOHC 24-valve engine produces 210 horsepower and a prodigious 400 lb-ft of torque at 1,600 rpm. A seven-speed adaptive automatic transmission helps make the best use of the engine’s power. The turbo diesel is amazingly smooth and quiet. It behaves very much like a gasoline engine, but with a lot more torque. The EPA rating is 17/21, which is excellent for a big 7-passenger SUV that weighs 5,400 pounds. All Mercedes SUVs feature highly sophisticated AWD systems and the GL350’s 4Matic system is no exception. Technology has always been a strong point

for Mercedes. In addition to the 4Matic allwheel-drive the GL350 had four-wheel air suspension known as AIRMATIC. It also had Hill Start Assist and a trick driveractivated off-road driving program. All this high-tech computerized wizardry stops just short of steering for you. Our tester had the optional Blind Spot Assist, which is great for such a large vehicle in busy traffic. Behind The Wheel: The GL350 feels as solid as a tank, which is something we expect from Mercedes. The driving experience is solid both on and off the highway, but not cumbersome. Whines: Optional equipment can run up the bill. Our test car had $10,000 worth of options and that didn’t even include leather upholstery. As quiet and clean as the Blue TEC diesel is we still don’t like slimy diesel fuel nozzles at typical low-upkeep filling stations. We still occasionally hit the cruise control lever when using the nearby turn signal stalk. Bottom Line: Engineering, safety, quality, and comfort are all excellent in the 2011 Mercedes GL350 Blue TEC turbo diesel SUV. It’s a very solid vehicle and a solid value with the added benefit of an economical diesel engine.

28 Kitsap Peninsula Business Journal•KPBJ.com April 2011

2011 Jeep Wrangler: Still number one for fun By Bruce Caldwell Jeep wrote the book on off road fun and they’ve continued that incredible 70-year tradition with the 2011 Jeep Wrangler Rubicon. This is the most sophisticated short wheelbase, two-door Jeep ever, but it’s still plenty rugged for off-road adventures. Walkaround: Our test Jeep Wrangler Rubicon had the Flame Red clear coat paint, which was a big plus in our book. It had the black removable hardtop, which was another plus. The hardtop is called the Freedom Top, because it’s a 3-piece modular affair that permits great flexibility. The Wrangler retains classic Jeep styling elements of flat body panels, pronounced vertical grille bars, fenders that are separate from the body with lots of tire room, and very short front and rear overhangs. Approach and departure angles are excellent as that’s a signature of Wranglers and previous CJ models. Interior: The interior was redesigned and upgraded for 2011. The Rubicon is the top model, so our tester had the optional Power Convenience Group with power windows, locks, and power heated mirrors. It also had optional heated front seats (which should have been standard equipment years ago). It had the optional high tech Media Center with entertainment

features and GPS navigation. All this modern electronic gear seemed a little incongruous although it was greatly appreciated. The hardtop equipped Wrangler is noticeably quieter than soft-top models, but it’s still noisy compared to full-bodied SUVs. Front legroom is acceptable and headroom is outstanding. Abe Lincoln would appreciate having room for his top hat. The best we can say about the rear seat is that it beats sitting on the floor. There’s some cargo room behind the rear seat, but not a lot as would be expected in such a short vehicle. Under The Hood: The sole engine is the 3.8-liter V-6, which produces 202 horsepower and 237 lb-ft of torque. Our Wrangler had the optional 4-speed automatic transmission with Hill Descent Control. The EPA rated it at 15/19 mpg. The 6-speed manual transmission gets the same rating. Highway performance is adequate and that’s about it. Behind The Wheel: The Jeep Wrangler shines brightest when it’s out in the woods playing. It’s easy to toss around and quite nimble. It will handle almost any terrain. It feels solid and rugged. The Rubicon model has tires and suspension tuning designed for serious off-road travel and worthy of its namesake Rubicon Trail.

In our off-road testing we never encountered any conditions even remotely challenging for the Wrangler. We’re sure it could have handled tougher terrain, but we weren’t up for scratching the beautiful paint. We’re not big fans of the short wheelbase, high center of gravity highway driving dynamics, but could just mean we’re old and spoiled by contemporary sedans. Strong crosswinds are noticeable in the Wrangler.

Whines: The doors lack detents to keep them open. That’s in keeping with their removable nature, but it’s still annoying. The swing-out tailgate also lacks a detent. Bottom Line: The 2011 Jeep Wrangler Rubicon isn’t an all-purpose vehicle. It’s designed for unique individuals with far more adventurous objectives than basic day-to-day commuting. As such, the Wrangler puts weekend fun far ahead of daily drudgery. The Wrangler Rubicon does what it was designed to do very well.


All new 2011 Chrysler 300 offers fresh styling and improved dynamics

more exterior chrome, halogen fog lamps, remote starting, 18-inch wheels and tires, heated front seats, rear seats with lighted cupholders, premium, 276-watt Alpine AM/FM/CD satellite radio with eight channels, and six speakers, plus Uconnect voice command with Bluetooth. The optional Luxury Group ($3,250) includes luxury leather trimmed bucket seats, climate controlled front seats, heated rear seats, wood and leather wrapped heated steering wheel, power adjustable pedals, trunk mat, power tilt/telescoping steering wheel, power rear sunshade, 160-amp alternator, auto-dimming exterior mirrors, heated/cooled cupholder, driver memory for radio, seat, mirrors, pedals. The Chrysler 300C and 300C AWD add Garmin navigation, Sirius Travel Link, power adjustable pedals, 12-way power front seats, heated front and rear seats, power tilt and telescope steering column, a performance brake package, and more. Available options include the Safety Tec Package ($2,795) with adaptive HID headlights, forward collision warning, adaptive cruise control, blind-spot monitoring with rear cross-path detection, park assist, HomeLink, rear foglight. The Sound Group ($650) includes the Alpine stereo system with 506 watts of power, nine speakers, 12 channels, and 7.1 matrix surround sound. Safety equipment on all models include front, side and roof curtain air bags, and ABS disc brakes with both EBD and Brake Assist, traction control, tire pressure monitoring system and stability control. Interior: Much of the interior, including instrumentation, the center stack, switches and controls, seat and door panel trim, and door pockets have all been restyled for added comfort and utility. Although interior room matches the previous model, the much more supportive seats and their coverings, have all been redesigned using softer, more luxurious materials. The result is a more wellappointed look and feel. Larger windows and thinner pillars have added to the amount of light entering the cabin, and

good fuel economy. It’s rated at 18/27 City/Highway with regular gas. The Chrysler 300C comes with the 5.7liter Hemi V8 engine, that delivers 363 ponies and 394 foot-pounds of torque, with a 5-speed automatic transmission. Fuel economy is an EPA-estimated 16/25, with mid-grade fuel specified. Behind The Wheel: Our test vehicle was the base Chrysler 300, with the V6. It’s heavy on horses and torque for its size, and very driveable in town or on the highway, providing more than adequate power — even in this heavy car. It boasts 63 percent more power and 36 percent more torque than the old 2.7-liter V6, and 42 more horses and 10 foot-pounds more torque than the old 3.5-liter V6. The new variable-ratio electro-hydraulic power steering system has a nice feel to it, turning this car with authority, minus any noticeable body roll. Braking is excellent as well. The new suspension system delivers a smooth, comfortable and quiet ride, thanks to the addition of a significant amount of acoustic material throughout. Whines: None Bottom Line: In my view, the new Chrysler 300 is the best sedan Chrysler has ever built. There is a model for every price range, and the list of options and option packages is generous. Quite simply, this is Detroit iron at its best, and rivals anything from Europe or Japan.

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April 2011 Kitsap Peninsula Business Journal•KPBJ.com 29

By Lary Coppola The popular Chrysler 300 has been redesigned for 2011, delivering improved ride and handling, and adding a smooth, powerful new V6. The result is a true American luxury car with room, comfort, power and presence. The flagship Chrysler 300 was an enormously successful, large, rear-wheel drive sedan — and the most recognized and award-winning car in the history of the industry. Replacing it during a highly uncertain time that saw Chrysler’s ownership go through bankruptcy, and change three times, it’s a major wonder this car came out as well as it has. While the 300 maintains its bold, aggressive look, it’s been refined with a smoother, rounder demeanor. Nearly everything under the sheet metal has been changed, and the results are evident in the more responsive handling, quicker steering and much better ride. Walkaround: For 2011, the Chrysler 300 has a smoother look, accented by a new windshield that lays three inches farther back than previously. Every body part has been restyled from the rocker panels to the roof, resulting in a smoother, rounder front end, that features new headlamps, a new, rounder grille, new aluminum hood with refined lines, new bumpers, larger windows with chrome surrounds, more heavily sculpted fenders with flared wheel wells, beautiful new LED lamps front and rear, a completely new rear end treatment, and finished off with new Chrysler winged badges. Model Lineup: The base 2011 Chrysler 300 comes standard with cloth upholstery, automatic air conditioning with rear outlets, humidity sensor and air filtration, multi-function steering wheel, driver information center, keyless entry, automatic halogen lamps, power windows, mirrors, and locks, cruise control, Uconnect dashboard display and control system for audio, Sirius satellite radio, USB port with iPod control, and two 12-volt outlets. The Limited upgrades with leather upholstery, eight-way power driver seat,

improved outward visibility significantly. Instrumentation now features a bright new tworound-gauge cluster with much-improved graphics and new ice-blue accent lighting that’s legible day or night. The center portion of the instrument panel is dominated by an 8.4-inch touch-screen control system that comes in the base and Limited versions with audio and climate functions. In the 300C and 300C AWD versions it comes with a colorful, large-icon Garmin navigation system (optional on Limited versions, not available on 300). The new four-spoke padded steering wheel has a leatherwrapped rim and thickly padded hub lined with redundant switches for the voiceactivated telephone, cruise control, sound system, and driver information center. Under The Hood: The standard powerplant in the Chrysler 300 and Limited models is the new 3.6-liter, DOHC, 292-horse, 260-foot-pound Pentastar V6, with variable valve timing for more flexibility in delivering low-rpm torque and high-rpm horsepower, as well as


2011 Kia Optima offers surprising luxury and more By Lary Coppola The Kia Optima is surprisingly one of the best-looking sedans of the 2011 model year. Kia is on a roll, as witnessed by the redesigned Sportage, popular Soul, the Forte sedan and its 2-door version, the Koup. All offer technology not found on a lot of vehicles at any price, and exterior design that manages to be edgy for this segment, while not coloring far enough outside of the lines to risk buyer polarization. That’s a hard tightrope to walk, but one Kia has successfully managed it without slipping for the past couple of years. Let’s be clear here — this is not a driving enthusiast’s car. But it is a nice, surprisingly high quality vehicle, with lots of luxury amenities found in much higher priced vehicles, at an incredible price — around $26,000 pretty well loaded. Walkaround: The Optima’s styling is a clean, smooth paradigm shift for the company. The design focus is no longer Korean — or even Asian. It’s become a world car on the same level as Toyota, Ford, and Honda. The racy way the headlights and taillights wrap around into the fenders, coupled with its broad wheelbase and low stance, give the car an aggressive design presence. The look is completed by a functional low front air dam that also contributes to better fuel economy, and muscular-looking flared fender wells. Its elegant grille is a simple, chrome bezel surrounding a black mesh screen — a look taken directly from more exotic cars such as Bentley, Jaguar, and Aston Martin. Wraparound red taillights finish the dynamic, sporty look, coupled with dual chrome exhausts — overkill for an inline four-cylinder — but fitting smoothly into the styling. Interior: The interior of the new Optima has the look and feel of an expensive European

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30 Kitsap Peninsula Business Journal•KPBJ.com April 2011

Every new KIA comes with a 10 Year/100,000 Mile Factory Limited Warranty

sedan. The dashboard boasts French-stitched, pebblegrain black leather, while the instrumentation is all business, right down to the clean, crisp readable font. The controls on the center stack are driver-centric — simple, self-explanatory and easy to use, while the stack is angled ten degrees to the left for minimum distraction. A digital dashboard computer delivers information like fuel range, instant fuel mileage, and outside temperature, while the steering wheel tilts, telescopes and features controls for audio, cruise control, phone and Eco setting. The navigation system is simple and easy, and the Infinity deluxe 12-speaker audio system delivers superb sound. Five-passenger seating is excellent, with firm, wellbolstered seats offering snug lateral support for more adventurous driving. Heated front and rear seats are available, as is front-seat cooling, a heated steering wheel, and a cooled glovebox for keeping refreshments chilled. The panoramic sunroof is huge, as is the cavernous trunk, which is opened by a remote. The 2011 Optima’s interior concedes absolutely nothing to its European or American competitors. Under The Hood: The standard Optima powerplant is a 2.4-liter, 200-horsepower, inline four cylinder, mated to a 6-speed manual transmission. A six-speed automatic with a manual capacity is optional. Fuel economy is rated at 24/City and 34/highway. A 2.0-liter, turboharged inline four, that puts out 274 horses is also available. It’s married to the same 6-speed automatic. In my view, it’s the best choice for this car. A gas-electric hybrid version is available, that I haven’t seen or driven as of this writing. Behind The Wheel: My test car had the 2.4-liter engine, which performed admirably — running what seemed almost silently when cruising at high speed — unusual for a small inline-4. Only under hard acceleration does it remind you of its size. I found more brake-pedal travel than I like, but the brakes are powerful and perfectly adequate once engaged. Steering was a bit bland for my personal driving style, but that’s a subjective measurement, as it’s very accurate and pretty firm all the same. Handling is surprisingly good with minimal body roll in tight corners. Overall, there’s a feeling of secure confidence in the way the Optima handles. The ride is pretty smooth for the most part, although a bit choppy on rough pavement, but not enough to really be a negative. Whines: Other than some road noise, there’s not a lot to really complain about when you look at who this car is aimed at and the overall result. Bottom Line: The 2011 Kia Optima doesn’t offer a lot for the serious driving enthusiast, but every measurable dynamic seems focused on “confident comfort.” This is a fully equipped world car that delivers good performance, high efficiency, superior quality, generous creature comforts, and exceptional value — including a 100,000-mile warranty. It’s at least equal to its Japanese competition at a better price. Once you experience the level of quality and luxury of the EX version, you’ll begin to wonder why you’d ever need to pay more for a car. It’s that good.

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After outstanding customer response to the concept car first shown at the 2010 Geneva Motor Show, Porsche has announced that dealers around the world will begin taking 918 Spyder customer orders. This is a significant step toward actual production of the company’s next super sports car, a Porsche that marries unique plugin hybrid technology and outstanding performance in a visually stunning and purely Porsche package. The 918 Spyder will feature a high revving 500-plus horsepower V8 engine assisted by two electric motors – one each on the front and rear axles – which together will provide approximately 218 additional horsepower. This configuration also will offer an innovative, variable all-wheel drive system with independent control of the drive forces on both axles. Electrical energy will be stored in a liquid-cooled lithium-ion battery that can be recharged from a standard household outlet. Electric-only driving range is expected to be more than 16 miles, and recharge time will depend on each country’s electrical power network. Charging is expected to take about seven hours at 110V/10A in the United States, and a quick-charge option is being evaluated to further reduce charging times. To ensure the 918 Spyder’s worldwide exclusivity, Porsche will produce no more than 918 examples. Start of production at Porsche’s famed factory in Stuttgart-Zuffenhausen is planned for Sept. 18, 2013, and the U.S. base manufacturer’s suggested retail price is $845,000 (excluding destination and handling charges).


April 2011 Kitsap Peninsula Business Journal•KPBJ.com 31


2011 Ford Edge Sport: A fun urban SUV

By Bruce Caldwell One size fits all is definitely not how Ford markets its SUVs. Ford has a model for every budget, taste and need from the relatively compact Escape to the plus-size Expedition EL. The Ford Edge is considered the brand’s midsize crossover SUV. It’s based on the Fusion platform. The Ford Edge Sport AWD looks and acts more like an oversized AWD sedan than a truck-based 4x4 SUV and that’s a plus for most Pacific Northwest consumers. The Edge Sport isn’t a vehicle for trail blazing, but it’s a very competent allweather, multi-purpose crossover. Walkaround: The Edge Sport is heavy on sporty looks thanks to huge 22-inch polished aluminum wheels with Tuxedo Black spoke accents. These wheels have a very high bling factor, which is great for the vast majority of crossover owners who

seldom cross over anything more threatening than a parking lot speed bump. The paint was Tuxedo Black Metallic, which looked great when the sun hit the tiny metallic particles and so-so when skies were overcast. We liked the overall styling. The big wheels really make the Edge Sport. Its hip urban wagon look avoids the dorky minivan persona that can repel trendsetters who want functionality without appearing too boring. Interior: The Edge Sport lacks a third row of seating, which is fine for many buyers and helps further distance the Edge from minivans. Occupancy is limited to five people. The charcoal black leather-trimmed seats matched the hip exterior vibe. The 10way heated power driver’s seat had power lumbar and was very comfortable. The interior materials, fit, and finish were all excellent. The Edge Sport came with all the advanced MyFord Touch electronics, audio, and communications goodies. The SYNC voice-activated communications and entertainment controls are excellent. The system allows tremendous functionality while keeping the driver focused on the road ahead.

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32 Kitsap Peninsula Business Journal•KPBJ.com April 2011

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Under The Hood: The Edge Sport’s standard engine is the Mustang-based 3.7liter DOHC V-6 with 305 horsepower and 280 lb-ft of torque. This is an outstanding V-6. It performs like a V-8 in the Mustang and provides plenty of sport in the Edge Sport. The equally fine transmission is a 6speed automatic with steering wheel paddle shifters. The suspension is upgraded (“sport tuned,” whatever vagueness that implies). Towing capacity is 3,500 pounds. Behind The Wheel: We drove the Edge Sport on paved roads and moderately challenging dirt trails. It handled the offroad stuff, but the low profile tires weren’t

designed for mud. The highway is where the Edge Sport belongs and where is shines. Whines: We’re not big fans of the Mel Gibson Road Warrior grille bars, but we understand that they’re part of the Ford truck branding. At least the big bars were darkened for our test Sport model and the Edge grille is better integrated with the headlights and overall front end styling than some other Ford trucks and SUVs. Bottom Line: We liked the 2011 Ford Edge Sport. It’s a comfortable, solid, stylish, highly functional crossover that focuses on urban driving, but has the added security of all-wheel-drive.

2011 Range Rover Sport SC: Super SUV

By Bruce Caldwell On a scale of 1 to 10 the 2011 Land Rover Range Rover Sport Supercharged is an 11. It’s the SUV equivalent of the amplifiers in the classic Christopher Guest mockumentary “This Is Spinal Tap.” It’s a .45 Magnum in a duel with an air pistol. It’s more off road technology than 99.9 percent of its owners will ever use. It has 510 horsepower when 300 or so would suffice. It’s overkill — and we love it. The Land Rover Range Rover Sport is also expensive, but all that luxury, performance and technology cost money. It is a relative bargain compared to the other Range Rover that’s available with the 510 horsepower supercharged engine. The larger Range Rover SC can easily top $100,000, while our fully loaded Range Rover Sport SE was $81,000. Clearly the operative phrase is relative bargain. Walkaround: The Range Rover Sport is handsome in a boxy, brawny way. It exudes confidence and class. It shares design elements from the larger 7-passenger Land Rover LR4. The 2011 Range Rover Sport is largely unchanged after its 2010 makeover. Interior: The interior is handsome and nicely appointed. The seating position is high and it provides a commanding view of the road. You feel like a CEO in an executive suite and you probably are if you own a Range Rover. The nicely contoured seats are very supportive. Rear seat legroom is OK, but not great. The cargo room is very good. Under The Hood: The engine is a highlight of a vehicle loaded with highlights. Engine displacement is relatively small at 5.0liters, but output is right up there in Corvette

Z06 territory at 510 horsepower and 461 lbft of torque. The base Range Rover Sport comes with a non-supercharged 5.0-liter V-8 that produces a very adequate 375 horsepower and 375 lb-ft of torque. There is almost three tons of technology to haul around (curb weight is 5540 lbs), so the seemingly excessive amount of horsepower does serve a purpose. Both engines are backed by an excellent 6-speed automatic transmission. The exhaust note and the slight whine of the supercharger invite a lead foot driving style, which doesn’t help the already optimistic EPA fuel economy estimate of 12 city/17 highway. Behind The Wheel: We greatly enjoyed driving the Range Rover Sport. The performance and sound of the supercharged engine never grew old. The vehicle is spectacular off road. It easily and confidently goes anywhere you dare to try. Whines: Land Rover model names are a little confusing and the repetitive use of Rover in three models sounds like double talk. It seems irresponsible to take a Range Rover Sport through the scratch and dent terrain that it’s so capable of handling, but it also seems wasteful to only drive paved roads when the vehicle can go almost anywhere. These whines probably emphasize our inability to afford a Range Rover Sport. Bot tom Line: We can see why so many celebrities and wealthy people own Range Rovers. Besides their high status factor they’re also incredible SUV/luxury vehicles. The 2011 Range Rover Sport SC does everything exceptionally well — it’s truly a super SUV.


Nissan’s new Murano CrossCabriolet fills a very unique niche By Lary Coppola Convertibles have always been coupebased — until now. In fact, when I first heard Nissan was going to build a ragtop out of its mid-size Murano SUV, I actually thought I heard it wrong until I looked around the room and saw the puzzled looks of all the other writers as well. Were they really going to take a highly popular crossover SUV, lose the roof and two doors, do a huge redesign, and stick with the well-known Murano badge? Yep. The result is the first of its kind, high-end, all-wheel-drive, four-seat crossover convertible with a usable trunk. Go figure… Nissan debuted the Murano CrossCabriolet at the L.A. Auto Show earlier this year. Naysayers have referred to it as the answer to a question no one has asked, and claim it won’t sell. However, Nissan is being realistic, knowing the CrossCab is definitely a niche vehicle that most likely won’t be a highvolume model. And maybe that isn’t all bad. It’s certainly unique to the market, and will surely capture some ragtop buyers who long for a big, roomy droptop, but refuse to settle for a too-small vehicle that isn’t a daily driver. The target buyers for the CrossCab are older Gen-Xer’s (40-45), with families, including those married with teens still at home, along with empty nesters who are still active, and females. In tooling around the San Diego area on a test drive, it’s interesting to note that a number of women who saw it, openly admired it when sitting along side us at stoplights.

Walkaround: When I first saw the CrossCab up close and personal, I immediately realized just how different it looks in person than in photographs. There are lots of eye-catching styling details such as character lines arching over the fenders and running horizontally across the body, glass inserts in the grille, and subtle speedster-like humps on the rear deck. There’s also dual pop-up roll bars that deploy in a rollover situation. Split 5-spoke, 20-inch titanium finish aluminum-alloy wheels are standard. The CrossCab comes with a soft top — not a retractable hardtop. It’s available in two colors, and features a glass window and rear skylight. Interior: The leather interior is basic Murano, which is marked by curved lines with no sharp edges. However, all materials are “Infiniti Grade,” meaning they have been upscaled from the Murano SUV. Three colors are available — beige, camel, and black, and the CrossCab only comes in one trim level — essentially the equivalent of the top-of-the-line Murano LE. This means Bose sound system, satellite radio, Bluetooth connectivity, touch-screen Navigation, upgraded IT, and all the other goodies. The only option is upgraded leather, which is an additional $500. The CrossCab also features sculpted rear seats, with surprisingly decent legroom. Four people can ride in relative comfort even with the top up. The rear skylight adds natural light, but also allows the pop-up roll

bars to function properly if needed. Getting in and out of the Murano CrossCabriolet is easy — even from the rear seats, thanks to its ride height and the buttons on the shoulder of the front seats that move them forward automatically. The convertible top has no latches to undo — just a button to hold. The truck offers 12.3 cubic feet of cargo space, and 7.6 with the top down — enough for two sets of golf clubs, and/or some suitcases for that weekend trip — and is comparable to most other convertibles, and better than some, with the top down. Under The Hood: No surprises here. Reputed to be the best powerplant since the small-block Chevy, the CrossCab features Nissan’s workhorse 3.5-liter, 24-valve, DOHC V6 that powers many of its vehicles. It puts down 265 ponies with 248 lb.-ft. of torque. It’s married to Nissan’s second generation XTronic Continually Variable Transmission (CVT). Estimated fuel economy is 17 City/22 Highway. Behind The Wheel: While it’s no hot rod, the CrossCab does deliver remarkably smooth acceleration, with the CVT keeping the revs from getting out of hand. So even with the gas pedal on the floor, it never kicks down too far. Sitting up as high as the Murano SUV, it

offers a commanding view of the road — something unusual for a ragtop. Comfort is seemingly built into the suspension, and even with the standard 20inch wheels, road noise is minimal. Handling is a bit bland for my personal driving style, perhaps due in part to the hefty 4,438 pound curb weight, but looking at who this vehicle is aimed at, that’s not necessarily a bad thing. Whines: There is no transmission mode that allows the driver to “shift” manually. With the top up, rear visibility is somewhat compromised. Bottom Line: This is a really nice, imaginative vehicle, with tons of standard amenities. Standard all-wheel drive adds peace of mind when it’s needed, and the CrossCab will offer a lot of different lifestyle options to a wider variety of buyers than one might think at first blush. The base price on the Murano CrossCabriolet is $46,390, and it should be in showrooms momentarily.

April 2011 Kitsap Peninsula Business Journal•KPBJ.com 33


2011 Volvo XC60: An excellent, all-around NW SUV By Bruce Caldwell Volvo has always had an excellent grasp of what western Washington residents really need in a crossover SUV. That may not be exactly what people think they need, but short of an imposing, macho image the Volvo XC models suit our environment and everyday driving needs. The 2011 Volvo XC60 T6 AWD R-Design is our idea of the best Volvo XC so far. There is a strong Scandinavian heritage to this region and the Volvo XC60 reflects those positive traits. The XC60 is both functional and fashionable. It’s solid and stylish in a slightly conservative manner. It puts safety above all else, but doesn’t sacrifice a fun driving experience.

Walkaround: Our test Volvo XC60 was painted Passion Red (we’re big fans of bright red) and fitted with handsome 5spoke R-Design 20-inch alloy wheels. The overall look was sporty and contemporary, not drab and dreary like so many earth tone SUVs. The styling is crisp and contemporary, but a little more conservative than some of the Asian SUVs. The bright red paint, trick wheels, and slightly muted styling are a perfect blend of conservative and trend setting that we feel exemplifies the Northwest lifestyle. Interior: The interior was handsome and functional in a typical Scandinavian approach that we appreciate in both cars

34 Kitsap Peninsula Business Journal•KPBJ.com April 2011

Often imitated, never duplicated; Poulsbo’s Liberty Bay Auto Sales

Liberty Bay Auto Center has undergone many small changes and corrections over the years, yet its integrity remains steadfast and true. Back in 1989 Sandy and Dean Church said that we would “take care of our customers and they will take care of us”. This same culture is alive and well at Liberty Bay Auto Center today. Dean Church has purchased his dad’s remaining interest in the company and will continue to foster the same values as they had in the beginning with unwavering dedication to his employees and valued customers. We celebrate the longevity of our employees and pages and pages of repeat customers. A recent survey of Liberty Bay customers reveals comments such as “great, family like, friendly, going on 20 years of business with them” and “I’m on my 15th car from Liberty Bay Auto”. Liberty Bay keeps 80+ cars in stock and works very hard on maintaining a great variety of choices for discerning shopper (including onsite financing options and a number of extended warranty options to best suit the customers needs.), and with a Service and Detail department that maintains over 10,000 cars annually, we are definitely a one-stop shop facility. Each one of its cars are scrutinized by the AAA award winning shop right away, and then professionally polished and cleaned in the Detail Shop. You’ll get a full tank of gas, an owner’s manual, a second set of keys and your first Lube Oil and Filter change free along with its original 48 hour money-back guarantee. All these reasons are why it has been described as “The Friendliest Car Store on the Planet.”

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and home décor. R-Design interior elements made the interior more distinctive than base model interiors. The blue watch dial style instrument cluster is a nice touch. The front seats are firm, which we prefer. Volvo seats are great for long distance traveling. Interior fit, finish, and overall quality are first rate. Under The Hood: Power was great thanks to a 300 horsepower 3.0-liter inline turbocharged six cylinder engine that produces 325 lb-ft of torque at a low 2100 rpm. The six-speed automatic transmission was an excellent match for the engine. The 16/21 EPA fuel economy estimate isn’t as exciting as the Volvo’s performance. High performance often means correspondingly low fuel economy. In typical Volvo fashion safety features abound. The all-wheel-drive system with Instant Traction worked flawlessly. It was very sophisticated and reminded us of the type of advanced technology usually reserved for Land Rovers and Mercedes

SUVs. We were very impressed with the XC60’s off road prowess. Behind The Wheel: The Volvo XC60 provides an outstanding driving experience. Highway driving is quite car-like. There is some added height for a better view of traffic, but the XC60 still feels very stable. The XC60 handles off road situations and irregular terrain with great confidence. We didn’t drive this XC60 in the snow, but all other XC Volvos we’ve tested were superb on snow and ice. Hill Descent Control is standard, which is a big aid in steep, slippery traction situations. Whines: We’re hard pressed to complain about anything on the Volvo XC60. Back seat legroom is a little snug, but it’s fine for average height passengers. Bottom Line: The 2011 Volvo XC60 RDesign is a near-ideal Pacific Northwest cross over SUV. It’s a stylish, high quality, reasonably sized, all-purpose wagon/SUV that suits so much of the lifestyle and driving requirements of this region.

Eagle Harbor Holdings announces formation of VehicleTalk subsidiary Eagle Harbor Holdings, LLC (EHH), located on Bainbridge Island, announced that it has formed VehicleTalk, LLC as a subsidiary. VehicleTalk will focus on developing and licensing intellectual property related to next generation Bluetooth enabled vehicle data, Bluetooth enabled e-911, vehicle-to-vehicle and vehicle-to-infrastructure communications. EHH has tapped David Marsing to focus on corporate development and strategic planning and staffing for the new subsidiary. Marsing is a retired executive of Intel Corp where he had multiple roles including vice president of Technology and Manufacturing Group and COO of Intel’s Network Communications Group. Marsing stated, “Vehicles are evolving to allow people the freedom to safely perform Internet-related tasks that previously were done at home or the office. In general our society is getting busier and busier, and for purposes of productivity, driving or riding in a car used to be considered down-time. Some of the key goals of VehicleTalk will be to safely transition “car-time” to productive-time, and enhance automation of existing safety systems as well as enable the automation of new safety and maintenance systems. In the months and years to come, vehicle users will be surprised to learn some of the ways we’ll be applying the Internet to enhance user experience and overall safety in the vehicle. I’m anxious to grow this company and am excited by the people and resources already in place.” Tom Manos, EHH Telematics engineer, stated, “We’ve been developing various vehicle electronics platforms for well over ten years. The intellectual property developed by VehicleTalk will stand on the shoulders of the pioneering work we have already proven to benefit the automotive industry, and we will leverage over a decade of experimentation and design development to quickly bring new telematics innovations to the marketplace. Our primary goal is aiding vehicle manufacturers to ultimately benefit consumers.” Ken Schofield, EHH vice president Intellectual Property, stated, “Eagle Harbor Holdings previously joined the AUTO21 Network of Centres of Excellence as a research and development partner for next generation vehicle safety systems. As a subsidiary, VehicleTalk will now manage that relationship and contribute the full breadth of our engineering and development expertise to the AUTO21 m ission. AUTO21 supports nearly 200 researchers and 350 student researchers at 46 universities across Canada. The VehicleTalk team welcomes the opportunity to add innovation in vehicle safety to such a diverse and well established group.


Redesigned Ford Explorer a true winner

Electric Vehicles: Eco-Fad or the real deal? There has been a lot of buzz surrounding electric vehicles, or EV’s as they’re known in the industry, for the past year or so. A lot of traditional auto enthusiasts have branded EVs as nothing more than a fad being promoted by environmentalists. But is it? Apparently auto manufacturers don’t think so, investing billions in developing both electric vehicles that will match the driving habits of the American motoring public and in battery technology. The three most ballyhooed EVs are the Nissan LEAF, Chevy Volt and Mitsubishi MiEV. But EVs and plug-in hybrids are on the way from Mini, Toyota, Ford, Dodge, and Audi, as well as new models from pioneer EV maker Tesla. Stay tuned.

Behind The Wheel: I found both power and acceleration from the new V6 smooth, responsive, and more than adequate — something I was suspicious about for a V6 in a vehicle this size. Ford put a lot engineering into the new Explorer, and got the ride, handling, noise, and comfort levels almost perfect, with the rigid chassis and independent suspension delivering a superb all-around ride. It takes corners with relatively little body roll, and the speedsensitive electric power steering facilitates tight, quick turns. My only regret was not having the opportunity to take it off road and try out the electronic Terrain Management System. However, I have driven the Land and Range Rovers extensively, and it’s basically the same superb system. Whines: The voice command system is somewhat problematic, not always recognizing the command. I’ve experienced this in person, as well as watched a Ford representative have the same issues. You have to scroll through a lot of stuff to get the information you want, and even after you figure it all out, it will take your focus off the road. Bottom Line: The all-new 2011 Ford Explorer was worth the wait. It’s improved in every area, costs $1100 less than before, and the base model is a totally equipped, powerful, stateof-the-art, SUV that gets an EPA-rated 25 mpg on the highway. At around $33,000, it’s a value that’s hard to beat.

2011 Subaru Outback: The wagon for the Northwest By Bruce Caldwell The Pacific Northwest has long been a Subaru stronghold. This region was quick to embrace all the positive attributes the little all-wheel-drive wagons exhibited when they were first imported. Even oddities like the original Baja pickup with its rear-facing auxiliary seats in the bed, the little Justy sedan, and luxury/sports car SVX with its aircraft style windows found enthusiastic buyers in Washington. Subarus have grown substantially in size and sophistication since those early offerings and their popularity has increased exponentially. The reason for Subaru’s popularity is they’re ideally suited to the needs of local drivers. Walkaround: The Subaru Outback was redesigned for 2010, so the 2011 model is largely unchanged. We’re not huge fans of the current styling. The grille and headlight treatment look a little like someone took a page out of Ford’s styling notebook. The Outback doesn’t have the aggressive styling cues of the Impreza and the WRX. Interior: The interior is spacious and quite comfortable. Front and rear legroom are excellent as is headroom. A large power moon roof was a welcome option on our test car, although it carried a stiff $1,445 price tag. Cargo capacity is excellent. The 60/40-split rear seat adds versatility. There’s under floor storage and plenty of places for small items throughout the interior. Under The Hood: A 3.6-liter horizontally opposed 6-cylinder engine powers the Outback. It produces 256 horsepower and 247 lb-ft of torque. It isn’t a rocket like the WRX STI, but it’s still very adequate. The engine is well matched to a 5-speed automatic transmission. Subaru’s excellent AWD system is called Symmetrical All-Wheel-Drive. It’s a seamless system, both on the highway and on dirt trails. Fuel economy is reasonable at 18city/25 highway. Behind The Wheel: The Subaru Outback is one of the most car-like crossover SUVs and that’s a good thing. It has a surprising amount of ground clearance even though it doesn’t look like it. That provides excellent off-road capabilities. The Outback is ideal for snowy conditions, which is where most local owners go. Whines: We’d like sportier styling along the WRX lines. Bottom Line: The 2011 Subaru Outback is an extremely well rounded multi-purpose AWD station wagon that seems like it was designed specifically for the Pacific Northwest.

April 2011 Kitsap Peninsula Business Journal•KPBJ.com 35

By Lary Coppola I have to admit to never being a big fan or the original Ford Explorer. However, the 2011 Ford Explorer is quite another story. The new Explorer is 100 pounds lighter, five inches wider, four inches longer, with 80 more horses under the hood, 25 percent better fuel economy, and standard third row seating — with a pricetag $1,100 lower than the previous model. In my view, the 2011 Explorer blows its competition right out of the water. It boasts 10 segment exclusives, including best EPA fuel mileage — 17/city, 25/highway — best secondrow legroom at 39.8 inches, and tying the Jeep Grand Cherokee for first-in-class horsepower. The Explorer is first in cargo capacity with 80.7 cubic feet beh ind the front seats, with the split rear rows down — which fold at the touch of a button, bouncing back up with the pull of a lever. Ford also claims exclusives in safety, with optional inflatable rear seatbelts and standard curve control, which applies braking to individual wheels as needed to correct corner trajectory. Model Lineup: There are three Explorer models, the base Explorer, XLT and the Limi ted. All seat 7 passengers, and have Ford’s new 3.5-liter 290-horse V6 under the hood. The Explorer comes standard with cloth seats, a 6-way power driver’s seat including lumbar and recline; 60/40 split rear and 50/50 third row; tilt/telescoping wheel with controls; 6-speaker AM/FM/CD MP3 sound system, air filtration, speed-sensitive wipers, power windows, power locks, power seats, overhead console, cargo hooks, four 12-volt outlets, privacy glass, halogen projector-beam headlamps, folding sideview mirrors, roof rails, hill start assist, 175-amp alternator, 17-inch steel wheels with wheel covers. The optional 4WD Terrain Management System ($2,000) was obviously pirated from when Ford owned Land Rover. It uses no transfer case and includes Hill Descent Control. The driver selects the terrain with a knob (Normal, Sand, Mud/Ruts, or Snow/Gravel), and the vehicle does the rest — flawlessly. The Explorer XLT adds upgraded cloth seats, leather steering wheel and shift knob, 18inch painted aluminum wheels, automatic headlamps, heated sideview mirrors with LED turn signals and security approach lamps, backup and perimeter warning beepers, and 400watt Sony sound system. The Explorer Limited adds leather seats, SelectShift manual mode for the 6-speed automatic transmission, 20-inch painted aluminum wheels, power folding sideview mirrors, ambient lighting, adjustable pedals with memory, cargo net, dual zone climate control, 10-way power driver seat, rearview camera, remote start, 110-volt outlet, push-button start, garage door opener, and MyFord Touch driver connect technology. Second-row captain’s chairs are also available. Options include a power liftgate ($495), navigation ($795), and a Tow Package ($570) that includes trailer sway control that works with the stability camera, and a backup zoom camera that can guide your ball precisely to the hitch. Walkaround: The 2011 Explorer looks like a new vehicle, but does have overtones reminiscent of Range Rover. Proportionately, it’s large, yet smooth with short overhangs and aerodynamically fluid lines. The hood appears short from the side, but long from behind the wheel, with two parallel humps and a scoop in the center. The square front fenders are rounded off by wing-like amber indicators sweeping back atop the headlamps, and the rear taillamps feature LED’s. The window outline is clean, with blackened A, B, and D-pillars, while the body-colored C-pillar slants down and back. With Mustang-like fender flares the body sides follow the lines of the Taurus, with Ford’s new signature three-bar grille rounding out the package. Interior: Ford’s goal was to make the Explorer’s interior appear as expensive, as the BMW X5 or Audi Q7. The Limited’s leather seats (optional on the XLT) are comfortable, offering good bolstering and stiffness/softness. They’re heated on XLT, and heated and cooled with perforated leather on the Limited. The clean, slanted center stack has stylish satin-finish trim, and houses the 8-inch color touch screen that operates the MyFord Touch system. It replaces many of the traditional vehicle buttons, knobs and gauges with colorful LCD screens and five-way buttons, and the screens can be personalized to display information relevant to each individual driver using a simple button click, voice command or touch screen tap. There are more screens than gauges, and they’re configured in four quadrants and colors depending on which function you access. The Base model has a relatively simple 4.2-inch LCD screen, and it doesn’t come with the MyFord Touch system. Under The Hood: The aforementioned new 3.5-liter 290-horse, Ti-VCT V6, is a DOHC all-aluminum powerplant, featuring four valves per cylinder, variable cam timing and sequential multiport fuel injection. It’s mated to a 6-speed automatic transmission with optional manual shifting. A 2.0-liter turbocharged and EcoBoost direct-injection fourcylinder engine will be available later this year.


Editor & Publisher Lary Coppola Advertising Sales Dee Coppola Creative Director Steve Horn Webmaster/IT Greg Piper Graphic Design Kris Lively Office Administration Jennifer Christine Web Host Piper Computer Services Contributing Writers Rodika Tollefson

SCHOOLS Close Foss School. Close a lot of schools. Come on parents, think about this. In the 1960s we had over 100,000 kids in the school system. Now we have about 47,000. We spend more, adjusted for inflation, per student for education than ever before in history — with the worst results. We have to close some schools — nobody wants their school closed — but the school board is looking at the big picture of population and conditions and closing the schools that make the most sense to close. Do not fight them on this. Show an example to your kids by using common sense and the ability to absorb changes and thrive. This should have happened a long time ago but the state has dragged its heels because of strong pressure from the teachers unions and the teachers (who are fighting for their jobs) fanning the emotions of students and parents. Despicable behavior by the teachers and their unions. I just hope the students and

parents wise up to being used and just refuse to be puppets any more. Pauline Cornelius Olalla

LIQUOR PRIVATIZATION I understand that Senator Tim Sheldon (D- Potlach) has made the privatization of liquor distribution and sales in Washington his “pet project.” However, I take exception to his recent “proclamation” on two accounts. First, his comparison of this state’s stores as comparable to “….stores of all types in the countries of the old Eastern Bloc.” is absolutely ridiculous. I am assuming Senator Sheldon has some extensive customer service experience as a result of patronizing those “old Eastern Bloc” establishments that allows him to come to the conclusion he has made. If not, “What’s your point sir?” Senator Sheldon further states: ‘It is chilling to consider that in both instances we are dealing with ‘state’ stores.’ I think the

senator may be a bit too sensitive if he finds it “chilling” to enter a Washington State liquor store. But then again, maybe he doesn’t drink spirits and purchases his beer and wine only from other retail outlets. And if he does imbibe spirits he must travel out of state to make his purchases where the stores are less “chilling.” My final point has to do with the attitude that Senator Sheldon and both the House and Senate legislators have taken for the past six years or so, and can be summed up as: No matter what the people in this state vote for, we the legislators, will ignore because we know better than the citizens of Washington. It is exactly that “we know better” attitude that has put this state in the huge budget deficit and resulting economic consequences we are now experiencing. My advice to Senator Sheldon and the rest of the legislators is start listening to what the citizens of this state are telling you through their votes. Ken Foy Edmonds

Adele Ferguson Don Brunell Kathleen Byrne-Barrantes Dan Weedin Ron Rada Julie Tappero Paula Bartlett Jason Parker Press Releases

36 Kitsap Peninsula Business Journal•KPBJ.com April 2011

Email to pressreleases@wetapple.com The Kitsap Peninsula Business Journal is a special interest publication dedicated exclusively to providing news, information and opinions to the business communities of the Kitsap and Key Peninsulas, and North Mason County. It is published monthly by Wet Apple Media. Copyright, 2011, with all rights reserved. Postage is paid at Tacoma, WA. The Kitsap Peninsula Business Journal is read by more than 26,000 business, professional, political and military leaders in Kitsap, Pierce, and Mason counties. Additional copies are available for $1.50 each. Annual subscriptions are available for $25. Reproduction or use of any editorial or graphic content contained herein in any manner whatsoever without the expressed written consent of the Publisher is strictly prohibited. The Kitsap Peninsula Business Journal is proudly composed using Apple Macintosh® computers and printed by The Kitsap Sun, Bremerton, WA. Views expressed herein are strictly the opinions of the authors and do not necessarily reflect those of the advertisers or ownership of The Kitsap Peninsula Business Journal.

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Maryland’s mobile millionaires After passing a millionaire surtax in May of 2009, nearly one-third of Maryland’s millionaires have gone missing, thus contributing to a decline in state revenues, according to the Wall Street Journal. The politicians in Annapolis said they’d collect $106 million by raising the state’s income tax rate on millionaire households to 6.25 percent from 4.75 percent. In cities like Baltimore and Bethesda, which apply add-on income taxes, the top tax rate with the surcharge now reaches as high as 9.3 percent — fifth highest in the nation. Liberals claimed this was based on incomplete data and that rich Marylanders hadn’t fled the state. Well, when the state comptroller’s office confirmed the final tax return data for 2008, the first year that the higher tax rates applied, it showed: • The number of millionaire tax returns fell sharply to 5,529 from 7,898 in 2007 — a 30 percent decline. • The taxes paid by rich filers fell by 22 percent, so instead of their payments increasing by $106 million, they fell by some $257 million. While in reality a big part of that decline results from the recession that eroded incomes — especially from capital gains — stated the Journal, there is also little doubt that some rich people moved out or filed their taxes in other states with lower burdens. One-in-eight millionaires who filed a Maryland tax return in 2007 filed no return in 2008. Some died, but the others presumably changed their state of residence. A Bank of America Merrill Lynch analysis of federal tax return data on people who migrated from one state to another found that Maryland lost $1 billion of its net tax base in 2008 because of residents moving to other states. That’s income that’s now being taxed and financing services in Virginia, South Carolina and elsewhere, says the Journal. Montgomery County, outside of Washington, D.C., is Maryland’s wealthiest county and was especially clobbered, losing nearly $4 billion in taxable income in 2008, with some 80 percent of those lost dollars from high-income returns. States like Florida and Texas have no personal income tax, so the savings for a rich person who stops paying taxes in Baltimore or Montgomery County can be in the hundreds of thousands of dollars each year. Source: Editorial, “Maryland’s Mobile Millionaires,” Wall Street Journal, March 12, 2010.


U.S. regulators are shipping our jobs oversees By Don C. Brunell, President Association of Washington Business Some members of Congress complain that American corporations are “shipping jobs overseas.” But an analysis by the U.S. Chamber of Commerce reveals that U.S. regulators are doing virtually the same thing due to the high cost of excessive regulations. Federal rules alone in the past few years have exploded, and the Chamber finds it cost our economy $1.7 trillion. State labor and employment laws are costing the U.S. 700,000 jobs; paring back state regulations that exceed federal standards alone would spawn 50,000 new businesses each year. The Chamber report is not an indictment of government regulations, per se. Most regulations serve a good purpose. For example, we all want to fly safely, and air traffic controllers are essential to managing air travel. Health inspections in restaurants, grocery

stores and medical facilities are other examples of necessary government regulation. But, it is expensive to comply with everchanging and increasingly stifling regulations, leaving employers with less money to maintain or add jobs. As regulatory costs and administrative burdens mount, employers eventually hit a “tipping point” at which they have to close up shop or move out of country. Maintaining a proper balance is critical because regulatory excess costs jobs. For example, unable to win Congressional approval of its costly and controversial “cap-andtrade” legislation, the Obama administration is implementing the smothering air quality restrictions by regulation. The federal Environmental Protection Agency (EPA) has imposed a plethora of new air emission standards clamping down on all sources from homes to factories.

Will AFL-CIO’s partnership with U.S. Chamber and Obama’s woo of CEOs yield jobs?

pounds of mercury in 2009, and she wants the EPA to clamp down even harder on the plants, even though they’ve already cut emissions by 60 percent. Rep. Johnson fails to point out that, according to the National Rural Electric Cooperative Association, 75 percent of annual mercury pollution in the U.S. comes from outside our country — more than a third of that from Asian cement production, where there are no environmental controls. The industry projects that, if Rep. Johnson gets her way, we will lose 1,800 high-paying, family-wage jobs in the cement plants and another 9,000 jobs in the construction industry due to higher prices. Result: Lost jobs here, production transferred overseas to countries with less stringent environmental standards. Fewer American jobs, more pollution. Presumably that’s not the result Rep. Johnson was looking for. The bottom line is we need a balanced approach. Instead of regulators pushing as hard as they can with no thought of the lost jobs or economic damage, elected officials should ensure that federal, state and local regulators don’t ship any more American jobs overseas. That’s good for America, our working families and the global environment.

April 2011 Kitsap Peninsula Business Journal•KPBJ.com 37

By Harry Kelber So the AFL-CIO has developed a partnership with the U.S. Chamber of Commerce, one of its worst enemies, that has opposed labor legislation for longer than most of us can remember. What we gain from this strange partnership is the lobbying power of the three-million member Chamber in the fight for a job-creating, costly infrastructure, while it continues to lobby for cuts in government spending. Are we blind to the contradiction? The agreement won’t stop the Chamber from supporting  attacks on unions. It won’t change the Chamber’s policy of encouraging the outsourcing of hundreds of thousands of good-paying American jobs. It wants to get rid of many of the federal regulations that protect consumers, so that their companies can become more competitive. That’s some “partner!” And on Feb. 7, we find President Obama addressing a meeting of the U.S. Chamber of Commerce, pledging the assembled tycoons  he would build a friendlier, more cooperative, pro-business relationship, forgetting that the Chamber had aggressively opposed his health care and  banking agenda and spent more than $50 million during the 2010 midterm election to help the Republicans gain control of the House. President Obama’s basic message to the business community was that Corporate America must feel some sense of duty to our society as well as to its  natural focus on profit-making — an attempt at an even-handed statement — reportedly pleasing very few at the meeting. ‘Profits Before People’ Is Still the Wall Street Motto. Obama’s suggestion that the business community can help the economy recover by spending its reserves on job creation (the banks and big-time Wall Street investors have more than two trillion dollars in cash stashed away in their vaults) was met with skepticism by outspoken members of the audience. Harold Jackson, an executive at a Buffalo medical supply company, said: “Any business person has to look at the dema nd to their company for their product and services and make hiring decisions,” Jackson said: “I think it’s a little outside the bounds to suggest if we hire people we don’t need, there will be more demand.” Indeed, employers are not hiring many full-time people, because  they can get their workers to take up the slack by working longer and harder, or by hiring temporary workers who can be fired when they are no longer needed. Sympathy for the millions of unemployed doesn’t enter into their equation in business practices. There is a growing, discontent against  the AFL-CIO’s leadership from  labor activists and ordinary  union members that is simmering in various parts of the country, but hasn’t reached a public boiling point. Many members are angry that  they can’t find out how their dues payments are being spent. They are denied the right to run for high union office. When they ask questions of their leaders, they get no response.  They don’t have the protection of an ethical practices committee against abusive treatment. Nor is that all. Under the present leadership, the AFL-CIO has lost more than a million members in the past two years. It botched up its campaign for an Employee Free Choice Act and failed to clarify the provisions of the new heath care law for its members. And what have they done to improve the wages and benefits of low-paid workers? Critics have made the case that the AFL-CIO is not a democratic organization; that  it has been hijacked by a group of leaders of big international unions, and that it has become a selfperpetuating, self-serving  oligarchy. And so, the grievances of the rank-and-file are festering, without large-scale public complaints. No one knows when union members will find the courage to speak out for their rights, but the time will come, sooner or later. Look at Egypt, where millions of workers, who had not complained publicly about injustice for nearly 30 years, took to the streets to finally speak up for their rights. If it happened in Egypt could it happen here in the United States? Who knows?

Now, thousands of employers must install pollution control equipment or retrofit their existing facilities to meet the new standards. Those investments take decades to recoup, yet in a few years, the standards will change again requiring yet another round of expenditures. Ironically, when environmental regulations become too expensive, we lose both jobs and environmental protection. The U.S. jobs disappear and production is shifted to foreign countries where environmental standards are less rigorous. Another example hit close to home recently. The EPA’s new air standards for biomass boilers that burn wood wastes to generate electricity were so stringent that it threatened to kill many projects in Washington. Thankfully, those standards have been delayed. There’s a real irony here. Biomass boilers recycle dead, diseased and scrap wood that, if left on the forest floor, becomes fuel for wildfires that fill the air with greenhouse gases, ash and choking smoke. Washington Land Commissioner Peter Goldmark, who wants pilot projects to convert wood debris to energy, has butted heads with the EPA. Why implement regulations that kill American jobs? Because U.S. lawmakers demand it. For example, U.S. Rep. Eddie Bernice Johnson, D-Texas, claims that 10 cement plants in her home state emitted 225


Random musings on random things political… With the defeat of the two liquor initiatives this past November, it now comes out that the Washington State Liquor Control Board (WSLCB) is actually another state agency using inflated numbers to justify itself. According to the Daily Olympian newspaper, the state’s liquor operation reported that it generated about $870 million in sales last year with about $370 million of “profit” shared with state, city and county governments — much of it directed toward law enforcement at the local level. It also stated that all of the agency’s expenses, about $125 million, are covered by liquor sales These claims are reported in the WSLCB’s latest annual report. However, a close look at the underlying financial records show those are wildly exaggerated numbers. • Actual product sales were $577 million, not $870 million • Actual “profit” was a non-recurring $97 million (normally $60 million), not $370 million. • The “profit” isn’t earmarked for local law enforcement. • But most telling is that store sales don’t cover “all of the agency’s expenses.” Go figure… I’m sure you’re as shocked as I was to learn that yet another state agency is lying to the taxpayers.

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Work has begun reshaping Washington’s congressional-district boundaries, as we have gained a 10th Congressional seat courtesy of the 2010 Census. Some political activists want to see the state create a specific district that for the first time in the state’s history would be more than half minority.

It was proposed by combining Southeast Seattle with the suburbs south of the city, where the minority population has exploded over the past decade. A non-profit group, the Win/Win Network, has drawn up a potential “majority people of color” district and plans to submit it to the Washington State Redistricting Commission — the bipartisan panel charged with redrawing the state’s political map. What I found amusing, was that the biggest loser in that proposal could be “Baghdad Jim” McDermott, the 7th District’s 12term Democratic congressman — LARY COPPOLA and perhaps the single most The Last Word liberal person in Congress. It would basically cut his district in half, and move some of the boundaries to somewhat less liberal environs. McDermott was quoted as saying, “It’s always made sense to me” that Seattle remain unified in a single district.” I’ll bet it does. I guess it just doesn’t make sense to McDermott to walk all that liberal talk he’s been spewing for the past quarter century when it directly impacts him. I’m not sure how valid it is, but a straw poll on our West Sound Politics blog (www.westsoundpolitics.blogspot.com) asked, “If the election were held today, who would you vote for as Governor?” The choices were Congressman Jay Inslee, who is letting it be known he’ll run for the job if Governor Christine Gregoire doesn’t run for a third term, and Attorney General Rob McKenna,

who is rumored to have been eying the Governor’s mansion for well over a year. McKenna, who is popular even in ultraliberal Seattle, and was the top vote getter there the last time his name appeared on the ballot, beat Inslee by a 3 to 1 margin. Meanwhile, in a previous poll that asked if Gregoire should run for a third term, only two people out of everyone who voted, said yes. An interesting editorial in Investor’s Business Daily recently asked if America wasn’t becoming a welfare state. It pointed out the fact that more than one-third of all wages and salaries in this country are actually government handouts, noting that 35 percent of all wages and salaries this year will be in the form of a government payment. That’s up sharply from 2000, when it was 21 percent, and more than double the 10 percent it was 1960. In all fairness, it needs to be acknowledged that the payouts include Social Security and Medicare benefits — as well as unemployment checks — but include local, state and federal government employees. However, the bottom line is that a society can’t survive moving in the direction where the ratio of producers — those whose wages and salaries aren’t drawn from the public trough, is smaller than the non-producers — those who consume that wealth. One way to do this is spread the tax burden more equitably across the income spectrum. In spite of the liberal’s ingrained philosophy of using class warfare to pit the producers against the non-producers, the fact is more than 97 percent of federal income tax receipts are paid by the top 50 percent of income earners. The bottom 50 percent pay less than three percent of the total taxes — making it a truly privileged class because many of its members

get to live at the expense of others. To avoid the inevitable decline, Washington has to change the policies that have gotten us where we are — and soon. Tax rates need to be lower and flatter. Punishing “the rich” with higher rates and rewarding the bottom half with lower or no taxes violates the constitutional guarantee of equal treatment under the law. It also creates unnecessary tensions between classes, which itself goes against the American grain; establishes a set of perverse incentives that hurt wealth creation; and offends the streak of independence from government that helps define America’s exceptionalism. It would be interesting to see how the liberals and the media would spin it if the truly productive in America grew weary of the burden of supporting the non-producers and simply went on strike — like unions do — as they did in Ayn Rand’s Atlas Shrugged. I have a close friend who lives in Australia, and we communicate several times a week via email. What amazes me is how similar the political issues we have because of the liberal bent of our government are to those in the land down under where they have a prime minister who is the female equivalent of President Obama. I recently had the privilege of being the keynote s peaker at the NJROTC Navy Ball. It was a genuine treat to meet many of our young future leaders, and see how they demonstrated their respect for our flag and our country. I was especially proud when as part of the flag ceremony, the cadet said with conviction, “We will bow down to no one.” I had to wonder how those cadets could get that message to a certain individual in Washington D.C.

Greenies out to stop the flow of oil — again So now our lady senators, Patty Murray and Maria Cantwell, want the financial bar raised to limit speculation in oil, which they say is what’s driving up the price of gasoline. They ADELE FERGUSON are coPolitics sponsors of a bill asking federal regulators to jack up the amount of money you have to put up to buy futures contracts betting on “She blows!’” being heard from an oil prospector. Well, not so much she blows because they get oil different ways now, not just reaching a big pool miles down and standing back when it comes to the top the way it is in the movies. They get oil out of sand and shale and under water. Development of new and cheaper ways to get oil out of rock, for example, has increased speculation.

Currently, Wall Street traders may put up as little as six percent of the value of the futures contract, which low buy-in price senators say is the problem. They want it raised. They also say in a letter to the regulators that the higher price requirement should apply only to speculators and not to investors or bona fide hedgers. I don’t know what a bona fide hedger is although I am familiar with investors and I’m not sure how they would tell the difference from a speculator and an investor. Each is the other. A speculator’s aim is to become an investor and an investor had to be a speculator to even get started. It looks to me like this bill is just another way to get the public to move away from fossil fuels and go to electric cars. It isn’t speculators who caused the price of oil to soar, it’s what our president has and hasn’t done in his aim to reduce dependence on foreign markets for our oil. He has fought any effort to expand the production of our

own oil both in Alaska and the Gulf of Mexico. Oh, sure, he called off his moratorium on our drilling in the Gulf, but somehow the procuring of permits etc., to resume same isn’t coming easy. I think he’s also to blame for the stalling on the proposed Keystone XI pipeline from Alberta, Canada, south to Houston, Texas on the Gulf of Mexico. According to USA Today, this pipeline bringing crude from tar sands deposits would provide an extra 500,000 barrels of oil a day from a secure ally and neighbor, enabling the U.S. to offset declining supplies from Mexico and Venezuela and avoid having to reach out to less stable exporters. The greenies, of course, are out to stop the pipeline, warning of catastrophic results the way they did when the Trans-Alaska pipeline was being fought over. They claim the oil will contaminate the aquifers it would cross on its path though six states the way they claimed the Trans-Alaska line

would melt the permafrost and kill all the caribou, which didn’t happen. Two things have happened just recently. The U.S. announced it is making $2 billion available to a Brazil oil company so it can pursue deepwater drilling off its shores with our president’s promise to be a customer for the exports. Also, although Hillary Clinton said last fall that her State Department was “inclined” to grant the permit for the Keystone line, State, which has jurisdiction because it crosses an international border, announced it was postponing its decision to allow further environmental review of the project. That’ll hold things up indefinitely. If the U.S. blocks the Keystone pipeline, it’s said, Canadian developers have made it clear they’ll be glad to build west instead of south and sell oil from the west coast to China. They don’t say where on the west coast but who’s closer than us? (Adele Ferguson can be reached at P.O. Box 69, Hansville, Wa!. 98340.)


No one knows Kitsap like Windermere.™

COMMERCIAL CBA481338 $300,000 Location - Location! This 5021 SF investment building with office/retain areas, loading ramp and lay down areas is situated on 3/4 acre lot. Close to Bremerton Shipyard, located on St. Hwy 3 in Gorst area. Call Victor Targett, CCIM for details. 360-731-5550. Commercial CBA468464 $350,000 9000 Sq Ft building in the Bremerton Charleston area. Available at .30 per foot, loading ramp, good parking and centrally located. Call Victor Targett, CCIM for details. 360-731-5550. Silverdale #CBA485544 Four professional office spaces across from the Kitsap Mall. Sizes range from 1,166 sq.ft.-1,637 sq.ft; total 5,337 sq.ft. All ground floor suites in totally remodeled building. $16/sq.ft. full service includes all utilities. Mark Danielsen 360-692-6102/360-509-1299. Poulsbo #CBA483480 Beautiful industrial development completely fenced, minutes from Jefferson County and Poulsbo. 3-phase power, common comfort area with kitchen, plenty of parking, EZ truck access, security cameras and more. Bob Guardino 360-692-6102/360-710-7844.

Poulsbo #CBA482030 4000 sq.ft. warehouse, high ceilings, roll up door, nice office in great location. Joe Michelsen 360-692-6102/360-509-4009. Poulsbo #CBA454043 2 very nice offices in Olympic Place 2. 972 sq.ft. & 1475 sq.ft. Each contains private offices. Great parking , elevator & competitive rents. Joe Michelsen 360-692-6102/360-509-4009. Silverdale #CBA409048 4780 sq.ft. of office space on Ground level, in Silverdale. Bob Guardino 360-692-6102/360-710-7844. Poulsbo #CBA485599 $290,000 Hard to find .24ac commercial land in downtown Poulsbo with 88’ frontage on Jensen Way. Near new city hall, post office, and city marina. Most retail and office uses allowed, utilities in street. Mark Danielsen 360-692-6102/360-509-1299.

April 2011 Kitsap Peninsula Business Journal•KPBJ.com 39

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Kitsap Peninsula Business Journal 24/04  

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