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May 2011 Vol. 24 No. 5

The Voice of Kitsap Business since 1988

A Golfing Course for Champions Gold Mountain Golf caters both to local golfers and worldclass events By Rodika Tollefson This July, visitors from all over the world will come to the Bremerton area for what may be Kitsap Peninsula’s top major sporting event ever. Gold Mountain Golf Club will host USGA’s U.S. Junior Amateur Championship, which will bring more than 150 top youth golf players from as many as a dozen countries, along with their families, about a hundred USGA officials, another hundred college coaches and an international press contingent (the event is also televised). The championship, which will be free for spectators to watch, is estimated to bring an impact of about $1.3 million over one to two weeks to the local economy. “It’s the world’s biggest golf tour for 17 and under. You’ll get (to see) many future tour stars in this championship,” said Scott Alexander, Gold Mountain’s director of golf. Owned by the city of Bremerton, Gold Mountain Golf Club (www.goldmt.com)

L-R: Daryl Maheny and Scott Alexander, Gold Mountain Golf

Cover Story, page 24 $1.50 Display until June 1st

Inside Special Reports: Bank and Finance, pp 4-11 Golf and Recreation, pp 23-28

Real Estate, pp 16, 17

Editorial, pp 36-38

Human Resources, pg 18

Port Orchard Chamber, pg 32

Technology, pg 29 Environment, pg 33 Automotive, pp 34, 35

Home Builders Newsletter, pp 19-22


Jason Skifstad receives the Winner’s Circle Award

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Edward Jones Financial Advisor Jason Skifstad of Silverdale recently received the Winner’s Circle Award for his outstanding service efforts over the past year. your service record.” Skifstad was one of only 619 of the firm’s more than 12,000 financial advisors to receive the Winner’s Circle award.

Martha & Mary’s Rauch receives national recognition Susan Rauch, activity director at Martha & Mary has been re-elected as president of the National Association of Activity Professionals (NAAP) at its annual conference in South Carolina. NAAP is the premier organization for activity professionals in the United States, Canada, and Bermuda providing quality educational offerings as well as promoting high standards of practice for the residents they serve. She has been a member of NAAP since 1986 and has served on a variety of committees as well as on the Board. Rauch received her Bachelor’s Degree from Washington State University and has worked in activities since 1984 and has been the activity director at Martha & Mary Health Services in Poulsbo for the past 14 years and is an activity consultant and educator on the local and national level. Additionally, she has also been asked two years in a row by the education committee of LeadingAge, the national association representing non-profit senior service providers, to participate in the planning for its annual convention.

Political newcomer first to announce for Port seat Political newcomer Axel Strakeljahn announced in front of the Port Orchard Chamber of Commerce that he will run for the District 3 spot on the Port of Bremerton board of commissioners being vacated by Bill Mahan. He is the first person to announce his intent to run for the seat. “I’m not a politician, but it’s time for a businessman to step up and get involved in local government,” he stated. Strakeljahn is manager of the Port Orchard Fred Meyer store, where he oversees a staff of 250 and millions of dollars in annual sales. He has been with the chain for 15 years, and formerly managed two Bremerton Pay ‘n Pak stores and the Port Orchard Ernst Home Center. He holds an associate of arts degree in business from Highline Community College. A resident of Seabeck, Strakeljahn wants Kitsap County’s largest port district to begin paying attention to residents of Seabeck, Holly and Lone Rock. “There are a lot of tax dollars generated in these communities,” he said, “and I feel that it’s important that these communities have responsible representation.” Commissioner Larry Stokes s a resident of South Kitsap, as is Mahan, and Commissioner Roger Zabinski lives in Chico. Strakeljahn believes better budgeting, expense controls and financial accountability need to be put in place at the Port, and he pledged to work to make the port’s airport, marinas and industrial park all become profitable. Currently, none of them are. The Port Commissioner’s seat is nonpartisan, but Strakeljahn admits leaning conservative. If elected, he might join Stokes as a second strong financial conservative on the three-person board. “I strongly believe more taxes are not the answer,” he said. In 2009, Strakeljahn was honored by the local chapter of the American Red Cross as a “Real Hero,” for racing to save the life of a Fred Meyer customer, administering CPR until medics arrived. The week to file for the six-year term is June 6 to 10. Port of Bremerton commissioner candidates will run in the Aug. 16 primary, but only voters who live in District 3 will vote. The top two vote-getters will go on to the Nov. 8 general election, where voters in all three commissioner districts will elect the new commissioner.

Snuffin’s announces new director of Catering Sales Snuffin’s Catering, located in Gig Harbor, announced the addition of Janin Cassidy as director of Catering Sales. In addition to her sales and marketing duties, she will assist clients with the planning and production of their special events. Cassidy is a long-time veteran of the hospitality industry, primarily in high-end restaurants. Reach Snuffin’s at (253) 851-2900.


Action Training Systems to launch new EMR series Poulsbo-based Action Training Systems is launching the Emergency Medical Responder (EMR) series based on the new National Emergency Medical Services Education Standard (NEMSES) published in 2010. It’s new program Cold, Heat & Submersion trains emergency medical responders to identify the signs and symptoms of hypothermia as well as how to care for a hypothermic patient. All care demonstrations are performed by real emergency responders instead of actors to ensure only accurate training techniques are shown. Action Training Systems is a multimedia development company and worldwide leader in providing innovative training systems for emergency responders. The company provides quality video demonstrations on DVD and interactive computer based training (CBT) programs and simulators on the Iluminar Learning Management System (LMS) software platform. Action Training Systems produces training programs for emergency responders in both the private and public sector based on nationally accepted training standards. It also provides training programs for HAZMAT, Fire Service Rescue, The Essentials of Fire Fighting and more. For more information, visit www.action-training.com.

Excel Business Systems opens in Port Orchard

Burnett issues artists call for June 3 art and cat walk

Excel Business Systems, a Canon authorized office equipment provider, has opened in Port Orchard. Excel will be having a ribbon cutting ceremony Thursday, May 12 at 2 p.m. at its new location in the Port Orchard Industrial Park at 1340 Lumsden Road, Suite 110. Excel Business Systems has been in business for over 15 years in Tacoma and the Kitsap-based owners are excited to open their second location in their hometown. For more information, visit www.excelbusinesssystems.net or call (360) 443-2220.

The Amy Burnett gallery and 4th Street Gallery partner with the Kitsap Humane Society for “Everything Cats,” during the June 3, First Friday Art Walk in downtown Bremerton. Burnett is asking artists or artisans wanting to sell cat related items such as cat fabric items; vintage cat ceramics, cat paintings, pottery, cat clothing or furniture are welcome to join the event. The Amy Burnett Gallery will take no sales commission but suggests a small percentage (25 percent) donation to the Humane Society. There will be live cats for adoption. For more information contact Burnett at (360) 373-3187.

Best Western Bainbridge Island Suites earns “Best Western Plus” designation The former Best Western Bainbridge Island Suites is now the Best Western PLUS Bainbridge Island Suites, after earning the “Best Western Plus” descriptor from the Hotel Chain. The new descriptors, launched in 2010, give Best Western hotels the opportunity to earn the ”Best Western Plus” or “Best Western Premier” designation by meeting specific design and amenity guidelines. “Best Western PLUS” indicates well-appointed rooms with modern amenities, and an enhanced level of comfort for guests looking to get the most out of thei r stay. “No two Best Western hotels are alike, so these new descriptors will help our guests choose the right hotel for their needs from among the brand’s 2,200 North American properties,” said David Kong, Best Western International president and CEO. “Hotels that earn the ‘Plus’ descriptor typically have a 3-Diamond rating from AAA, and offer a little something extra to make a guest’s stay even more comfortable.” With 51 guestrooms and convenient guest services such as free high-speed internet access, an in-room refrigerator and available expanded deluxe breakfast, the Best Western PLUS Bainbridge Island Suites is designed to suit the needs of any traveler. “We are proud to put the ‘Best Western Plus’ sign on the door,” said Linda Thurrott, general manager of the Best Western Plus Bainbridge Island Suites. “We offer exceptional service, value and we work together as a team to create an unforgettable experience for each one of our guests.” To learn more or book a room, visit www.bestwestern.com.

2009/2010 Kitsap County Business Startups Are you interested in:

Precision Massage and Wellness Center opens

 Business Opportunities?

Precision Massage and Wellness Center has opened at 3261 NW Mount Vintage Way, behind the Target store in Silverdale, according to owner and managing director Ketti Lund. “We offer a sparkling new wellness center for all ages and we specialize in assisting those in competitive sports, including children, with our Precision Performance Program. Women and seniors will enjoy our Precision Wellness Club program. Our motto is ‘Discover you again with Precision,” Lund said. Yoga is also offered at various levels in the new facility, featuring small class sizes for individual attention. “We look forward to getting out and meeting members of the local community and supporting local businesses in any way we can,” Lund continued. Lund is a graduate of the Washington Community Alliance for Self Help (CASH) business development training classes and is an active member of the Kitsap CASH peer support program. Lund can reached at (360) 698-4144 or by email at ketti@xcpus.com.

 Selling to the Government?  Enhancing Your Business Revenues?

BPA names Dowling as new operations manager Bainbridge Performing Arts (BPA) announced the appointment of Shannon Dowling as the organization’s new operations manager. “The applicant response was overwhelming,” said BPA Managing Director Dominique Cantwell. “I interviewed several fantastic candidates, but ultimately, Shannon emerged as the clear choice. We’re thrilled to welcome her to the BPA family.” Dowling brings an extensive background in successfully developing and improving business processes using a customer service oriented approach, with years of information services management experience, paired with a lifetime of performing in the arts as a musician and actor. “I am thrilled to be joining the BPA family in this capacity. I have been consistently impressed by the programming and professionalism that I have enjoyed as a patron and a cast member of an upcoming production, and am looking forward to leveraging my previous experience in my new role,” said Dowling. For more information about BPA visit the web site at www.bainbridgeperformingarts.org.

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May 2011 Kitsap Peninsula Business Journal•KPBJ.com 3

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Banking on the go? There’s an app (or site) for that By Rodika Tollefson When online banking became available a few years ago, consumers were cautious in adopting the new convenience. Since then, online banking has become mainstream — and more popular for some transactions than visiting a branch. An American Bankers Association survey last year estimated that 36 percent of consumers preferred online banking, compared to 25 percent for branches — a reversal from 2007, when online comprised 23 percent and branch banking 35 percent. Now, there’s a new kid on the block, and it’s working its way up in the trends statistics: mobile banking. While the adoption rate is slow — and not surprisingly, faster among the younger generations, who are more likely to use smart phones — the industry is predicting a big push in the next few years. A report by Mercatus LLC (sponsored by Visa) estimates that by 2015, about half of mobile phone users will do mobile banking, compared to less than a third currently. Other statistics show lower numbers, but is just as brisk a growth. “The big thing is, customers will choose their banking however they want to and we want to be there for them… (Mobile banking) is an option for customers. If they want to come into the branch, great, (but) we want to provide services for customers wherever they are,” said Ken Hall, Bremerton-based district manager for the peninsula area at Chase (the holding company JPMorgan Chase & Co. took over the failed Washington Mutual a few years ago). Chase has been among the leaders in the mobile banking field, offering mobile browser and text banking as well as applications for the iPhone and Android platforms; iPhone and Android users even have the option of “QuickDeposit,” depositing checks remotely by capturing their images with their phone camera. Customers can receive instant alerts via text, email or app notices when their balance goes below a specified amount, their account is overdrawn or for other choices, and they can even transfer money between two accounts via text messaging. “Just like with the ATMs, with the mobile banking side of things, we’re seeing a wide range of people using it,” Hall said. “…A real benefit is that you can do your banking wherever you are.” Some banks have proceeded more cautiously with mobile apps, offering instead a mobile browser version that works on all platforms. “We offer a web-based portal, and the reason why we do that is every phone can interact with it. It allows us to provide

mobile services to customers regardless of their branch or carrier,” said David Devine, senior vice president and marketing director at Columbia Bank. Columbia piloted mobile about two years ago and since then has increased the functionality, which includes text and email alerts. Devine said customers in all age ranges utilize mobile banking, and with smart phone usage on the rise, Columbia is looking at expanding mobile banking options. “(Apps) are proprietary and different apps are required for various brands (of phones). That world is changing and like other banks, we’re evaluating our options constantly,” he said. “Adoption rates for smart phones are increasing to a point it will make sense to provide additional options.” Bank of America started rolling out mobile apps for Washington and Idaho customers in April. The technology has been available to BOA customers in many other states, but Washington deployment has been delayed because the platform uses different technology here, according to spokeswoman Britney Sheehan. “We understand it’s definitely a way our customers are looking to do their banking,” she said.

Kitsap Bank, which has been offering a mobile browser for about a year, is also exploring the idea of apps and text banking. “We have gone the route of a browserbased solution, rather than an app, thus far because of the ability to cross platforms and serve a greater number of customers. Recent studies indicate that the future of the mobile Web is more likely to be dominated by cross-platform browserbased mobile websites, rather than apps built specifically for iPhone, Android or other platforms,” Sue Besselievre, vice president/Customer Support Center manager at Kitsap Bank, said via an email interview. She said only about 5 percent of online banking users have enrolled in mobile banking so far, 85 percent of which are consumer/retail customers. But, she added, Kitsap Bank has just completed development of an iPhone app, with Android and Blackberry apps in development as well. “…Once completed, Kitsap Bank will review the impacts on our customers’ experience and consider the overall benefits of deployment,” she said. Text banking is another upcoming feature, and customers will be able to receive alerts, check balances

and transactions via text messaging. “Mobile banking began as an extension of the home computer, with customers mainly looking for transaction information and alerting capabilities. Mobile bill pay and payments in general seem to be gaining more customer acceptance, although there still seems to be some customer hesitation in that area,” Besselievre said. While banks are always looking at the new wave of possibilities as technology evolves, bankers don’t see mobile replacing online banking in the future. Hall, who’s been in banking for 17 years, said people used to think ATMs would replace branches but that hasn’t been the case. Plus, human interaction is not going away either. “A lot of people still prefer to deal face to face with a person when they have questions or issues,” he said. Devine shares the sentiment, saying that he thinks mobile banking will be more of a convenience, just as ATMs are. “I don’t see it replacing online banking, it’s just another tool,” he said. “…Human interaction is (still) an important part of the Columbia Bank brand. If you call Columbia Bank, for example, you talk to a live person,” he said. “It’s very important we keep that one-onone contact.”

Investing beyond Short-term CDs By Glenn Anderson Many people depend on certificates of deposit (CDs) to provide extra income. Yet CD rates have been fairly low for a while. In recent months, in fact, one-year CDs were paying about 0.5 percent, two-year CDs topped out at around 1 percent, and five-year CDs paid in the 2 percent to 2.3 percent range. Those rates are scanty enough, but they can seem even lower in an economic environment marked by rising food and gas prices. Before you consider alternatives, keep in mind that CDs still offer a key advantage: safety of principal. The Federal Deposit Insuranc e Corporation (FDIC) typically insures CDs up to $250,000. And since CDs are relatively short-term in nature, you don’t have to worry about locking away that money for long periods of time. So there can be a place for CDs in the fixed-income portion of your portfolio. However, during times such as these, you might consider looking at additional options, keeping in mind that, when seeking greater income, you’ll likely be

taking on more risk. Let’s consider a few alternatives: Fixed annuities — Many people buy fixed annuities to supplement their retirement income. But most annuities also allow you to take up to 10 percent of your account value each year without penalty. Plus, the interest rate you receive on a fixed annuity may be more competitive than that currently paid by a CD. Keep in mind, though, that annuities are not backed by FDIC insurance, and any guarantees are backed solely by the paying ability of the insurance company. Additionally, early or excessive withdrawals may be subject to penalties. If you believe a fixed annuity might be appropriate for your situation, speak with your financial advisor. Bond ladders — If appropriate for your situation, you can potentially gain extra income through a strategy known as a bond “ladder.” To build a ladder, you buy several bonds with varying maturities – short-, intermediate- and long-term. Once you’ve constructed your ladder, you could gain some advantage in various interest rate environments. When market rates are low, you’ll still have your longer-term bonds earning higher interest rates. And when market

rates rise, you can reinvest your maturing short-term bonds at the higher rates. But if you need income in addition to your regular interest payments, you can get it from the maturing bonds. Unlike CDs, however, bonds are not covered by FDIC insurance and are subject to credit risks. Bonds are also subject to interest rate risk: When interest rates rise, bond prices generally fall, and you may lose some or all of your principal if you sell your bond prior to maturity. But by holding your bonds until maturity, you can avoid loss of principal, assuming the issuer doesn’t default. Dividend-paying stocks — Some companies have paid — and increased — their stock dividends for many years now. If you don’t need the dividends to boost your cash flow, you can reinvest them to help boost your ownership stake. However, companies can reduce or discontinue their dividends at any time, and since stock prices fluctuate, you risk losing some or all of your principal. By exploring alternatives to shortterm CDs, you may find other appropriate investments that may better position you to reach your financial goals — so look around to see what’s available in the financial marketplace.


LEASING FOR ENERGY EFFICIENCY

Equipment financing brings cost-saving solutions within reach equals half of the total price tag, and operator training. Let’s look at a few of the specific advantages of leasing, and examine how leasing can be an efficient win-win option for enhancing energy efficiency in your facility. Perhaps the most powerful aspect of equipment leasing for energy retrofit projects is the positive cash flow such projects can produce. Consider an office complex, for example, that seeks to install a lighting retrofit system to save on energy

costs. If the price tag totals $150,000, the owner may not be able to accommodate the added building costs of purchasing retrofit equipment in the complex’s budget. However, leasing could bring the project within reach. With typical projected annual energy savings of $57,000 and leasing costs of $56,700 annually for three years or $44,300 annually for four years, the project would produce a positive cash flow, right from the outset and on through the life of the lease. A lease often does not have a down-

payment, so a lease is equivalent to 100 percent financing. This provision also serves to protect cash reserves for companies to direct toward improving aspects of their core businesses and enhancing their competitiveness. Leases are often very flexible, allowing for additions or upgrades to equipment — to keep up and take advantage of evolving technology and efficiency improvements. Leasing companies and banks both

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By Charles Robertson, KeyBank Political turmoil in several Middle Eastern petroleum-producing nations has only increased the uncertainty about energy supplies and consequent price volatility worldwide. Naturally, this factor has fanned the drive for increased energy efficiency and cost controls by businesses in Kitsap County and throughout the country. Many companies in this environment are taking a new look at equipment leasing as a strategy to bring energy efficiency retrofits — such as energy-saving lighting, and HVAC systems — within reach. The benefits of leasing energy-efficient equipment can be significant for almost any business. This may be particularly true of large energy users such as hospitals, schools, manufacturing and retail complexes, government entities and office complexes and other commercial facilities. Also, as the leasing industry has adapted to evolving market conditions, the equipment for nearly any kind of energyefficiency upgrade can be leased. For building owners, leasing — also known as equipment financing — can make the difference in whether an energy efficiency retrofit project is financially feasible. The cost of energy may fluctuate to some degree in the short term, but no one expects sustained reductions over time. Therefore the incentive to undertake these improvements will simply grow along with spiraling energy costs. Among the significant financial and operational benefits that leasing energyefficiency retrofit systems bring to building owners is the ability to conserve cash for other improvements to your core business, because leases don’t require a large down payment. Equipment leasing can conserve capital for other uses such as enhancing process or production systems, expanding inventory or increasing staff, all initiatives that can directly enhance a firm’s competitiveness. In addition, leasing facilitates cash management, a crucial competitive advantage. If you lease energy-efficiency retrofit systems and equipment, you can typically match lease payments to your energy savings and reduced maintenance costs. As a result, many such projects are cash-flow neutral; some are actually cashflow positive. As energy-efficiency technology has advanced in the constant search for savings, leasing has taken on new importance, becoming a key facilitator in the widening adoption of these technologies. Advanced energy-saving lighting, heating, ventilation and air conditioning systems can be expensive, and such emerging technologies as geothermal heat-pumps, small wind generating systems and photovoltaic or hot water solar systems may seem daunting innovations to many business owners. However, to reiterate, all can be leased today, and the “soft costs” associated with adopting them can be folded into the lease. These include installation, which often


Kitsap Bank’s long-time chair passes the gavel The gavel has been passed. Kitsap Bank’s long-time Chairman of the Board, the revered Helen Langer Smith, announced that she will assume the role of Vice Chairman, paving the way for her daughter, Cydly Langer Smith to advance to Chairman of the Board. The change became effective March 31, and the announcement was made at the 2011 Annual Shareholders meeting, which was held in Port Orchard. Helen Langer Smith has served as Kitsap Bank’s Chairman of the Board since 1986, when she succeeded her mother, Hannah Langer. The Langer family legacy continues today, as Cydly will now succeed her mother. “I am honored to follow in the footsteps of my mother and grandmother, and to work with our excellent management team, as we lead Kitsap Bank into our second century. While it is imperative to continually look to the future and provide cutting edge financial services to our

customers; I believe it is also vital to maintain Kitsap Bank’s commitment to build long-lasting relationships with our customers and community, just as we have over the past century,” stated Cydly Langer Smith. According to Jim Carmichael, Kitsap Bank’s President and CEO, “Our longevity and consistent ownership and management have laid the groundwork for this successful transition.” Cydly Langer Smith was elected Kitsap Bank’s Vice Chairman of the Board in 1996. She previously owned and operated Langersmith Consulting and Project Management, Inc., a land use consulting business. She graduated from University of Washington and earned her J.D. at The George Washington University. Ms. Langer Smith will become only the third Chairman in the history of the 102-year-old bank. The Langer family’s nearly 90-year commitment to Kitsap Bank began in 1922, just 14 years after its founding in Port

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Wells Fargo thanks customers for donating at ATMs to aid Japan Wells Fargo customers have donated over $1 million through Wells Fargo ATMs to the American Red Cross Japan Earthquake and Pacific Tsunami Fund. This is the first time ATMs have been used nationally to accept donations. “At Wells Fargo we are honored to serve such generous customers,” said Jonathan Velline, head of Wells Fargo ATM Banking and Store Strategy. “When we heard the news, we were able to quickly deploy our ATMs and offer customers a convenient way to make donations. The response has far exceeded our expectations.” “Our thanks go out to all the Wells Fargo customers and team members who have donated at Wells Fargo ATMs or through other channels,” said Tim Hanlon, head of the Wells Fargo Foundation. “Your support is incredibly valuable as the people of Japan work to overcome a terrible tragedy. We encourage others to consider making a contribution to the relief efforts — large or small, it all helps.” Wells Fargo recently contributed $500,000 to the American Red Cross to support immediate relief and recovery efforts in Japan. In addition, Wells Fargo is matching contributions from its team members dollar-for-dollar, up to $500,000, for a potential total of $1.5 million. Wells Fargo customers can still donate to the American Red Cross relief efforts in Japan at more than 9,000 Wells Fargo ATMs across the country. Customers will not be charged any fees for using the service and 100 percent of the donation is sent to the American Red Cross. Donations may also be made via the American Red Cross website at www.redcross.org.

LEASING from page 5 provide equipment leasing services. However, rates — and therefore one’s choice of how to proceed — may differ depending on one’s previous banking relationship. It’s also important to understand the terms of the lease agreement clearly. For example, what purchase options are available at the end of the lease? Once installed and in ongoing use, leased equipment becomes not only part of the enterprise’s operating budget but also of its day-to-day operations. It’s important to understand the responsibility under the lease in such

important areas as taxes, insurance and maintenance. Business owners should be certain to talk to their advisors to see if leasing benefits the company’s unique situation. It’s not often that businesses have the opportunity to implement “green” initiatives in a way that is either cash-flow neutral or positive. Leasing is a unique opportunity to help the community where one’s business operates to thrive by reducing its carbon footprint. (Editors note: Charles Robertson is vice president and area retail leader for KeyBank’s South Puget Sound District. He can be reached at (360) 394-6023 or Charles_Robertson@KeyBank.com.)

Orchard, when Frank E. Langer, Jr. purchased controlling interest in the bank. Frank Langer served as president of Kitsap County Bank from 1930 to 1952. Upon his death, Frank’s wife, Hannah Norum Langer, was elected the fifth president of the bank, thereby becoming the first female bank president west of the Mississippi River. Hannah Langer served as the Kitsap Bank’s president for twenty years, and continued

on as Chairman of the Board until 1986. Established August 8, 1908, Kitsap Bank is headquartered in Port Orchard, and operates 20 locations throughout Western Washington. With over $900 million in assets, the bank provides a full range of financial services to commercial and individual customers. Kitsap Bank has also been named as a Preferred Lender by the U. S. Small Business Administration.


Washington CASH – The place to start or grow a Kitsap business to credit Washington CASH. Walton said their success comes largely from not quitting, from saying “Yes I can” and finding solutions to business problems. "Both took the time to write a solid business plan and both stuck to it, refining and improving it as they went along," Walton said. The CASH program begins with 30 entrepreneurs who meet the income guidelines and following graduation from the eight-week training classes, they enter into what Walton calls the heart of the Washington CASH program – business peer support groups that meet every two

weeks in Bremerton. More than 60 business owners at various stages of development meet to support each other as they grow their businesses. Micro loans are offered and must be approved by the peer support groups. Clients are supported by volunteer business coaches and mentors who provided more than 350 hours of one- toone assistance in 2010 in Kitsap. Clients also have access to a local ‘panel of experts’ and Washington CASH offers one-to-one counseling with clients. Guest speakers, many of them CASH graduates,

share their start-up stories. Special labs are offered to help those needing more intensive help. Except for the initial $40 charge for the workbook, there is no charge for the CASH program. “Participants may stay in the program as long as they are moving forward,” Walton explained. Orientation for the next eight-week business development training class is Tuesday, June 7 at 6 p.m. at Kitsap Community Resources at 1201 Park in downtown Bremerton. “The three-hour CASH, page 8

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By Bill Hoke She stood up, alone in a group of strangers, walked to the front of the classroom, took an obvious deep breath and said in a soft but firm voice, “My name is Eve King-Hill and I want to start a psychotherapy practice in Poulsbo”. Eight weeks later, Eve and 25 other entrepreneurs graduated from what she described as an ‘intense’ Business Development Training Class offered by the Washington Community Alliance for Self Help (CASH). In the class, Eve worked on her business and when it appeared to be a feasible idea, she began to develop a formal business plan. After graduation, where Mayor Patty Lent was the guest speaker, Eve joined the CASH business support program where she joined 60 gradates from previous classes who meet every two weeks to refine their business plans and begin operations. After more than a year of work in her peer group and at home, Eve came to a recent business support meting to announce she had met her financial goals right down to the month she projected. "It is time to move on," Eve says and she feels 'well prepared’ to meet the challenges, knowing she still has free access to her group, her mentors and to Stuart Walton who directs the CASH program in Kitsap. Scotty Zufelt, a North Kitsap native, found himself unemployed two years ago from a construction job working in concrete that he thought would last a lifetime. Down but not out, Scotty resolved to never find himself in a position where he could lose his job because of others and he started Star Concrete Design in Poulsbo where he introduces himself as ‘CEO and chief artisan’. Following his graduation from business development training, Scotty was quickly moved to a Tier Three advanced group of business owners operating real businesses. “The Tier Three group sets high standards and demands the members make progress through encouragement, poking, prodding and living the CASH model of no quitting," Zufelt said. Local business consultant Bill Hoke mentors the Tier Three support group and saw that there was no quit in Scotty Zufelt. “As he gained confidence, Scotty became indomitable; nothing was going to get in the way of his dream of owning his own business, even in the most difficult business climate in decades,” Hoke said. Today Star Concrete Design has three full time employees and Scotty is busy finishing concrete and perfecting his stamping business, moving toward the next evolution of his business plan. Scotty, too, recently graduated from the CASH program as a client and now relishes his chance “to give back to a program that changed my life”. Scotty has volunteered to be a coach in the business development training classes. Both Scotty and Eve King-Hill are quick


U.S. Bancorp announces increase in quarterly common stock dividend

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The board of directors of U.S. Bancorp has approved a 150 percent increase in the dividend rate on U.S. Bancorp common stock to $0.50 on an annualized basis, or $0.125 on a quarterly basis. The quarterly common stock dividend of $0.125 per common share was payable on April 15 to shareholders of record at the close of business on March 31. Additionally, the board of directors of U.S. Bancorp approved an authorization to repurchase up to 50 million shares of its outstanding common stock. This new authorization replaces the company’s current share repurchase program. U.S. Bancorp’s common stock shares may be repurchased through December in the open market or in privately negotiated transactions. The reacquired common shares will be held as treasury shares and may be reissued for various corporate purposes. Richard K. Davis, chairman, president and CEO of U.S. Bancorp, stated, “Raising the dividend has been a top priority for me, personally, our board of directors and senior management team for more than a year. Throughout that time, we have remained confident that our company’s strong capital position and ability to generate additional capital through earnings could support a

higher dividend rate for our shareholders. We submitted our Comprehensive Capital Plan to the Federal Reserve early this year, and we have now received notification that the Federal Reserve does not object to our request to increase our dividend or undertake other capital distributions. Our shareholders deserve to be rewarded for the support, confidence and patience they have shown over the past few years, as our company, and our industry, have confronted and adapted to regulatory and legislative changes and an uncertain, but recovering, economy. Our first priority is the dividend, but a stock buyback program is also an important component of our Comprehensive Capital Plan, giving us added flexibility to efficiently return capital to our shareholders. Although the board has authorized a 50 million share repurchase program, we do not expect to begin buying back a meaningful number of shares before final Basel III capital guidelines are published later this year. Our ability to increase the dividend and announce this new repurchase authorization today reaffirms the company’s strong capital position. We will continue to reassess the dividend rate going forward as earnings grow, moving us closer to reaching our longer-term commitment of returning the majority of our earnings to shareholders.”

The board of directors has also declared a semi-annual dividend of $3,594.50 per share (equivalent to $35.945 per depositary share) on U.S. Bancorp’s Series A NonCumulative Perpetual Preferred Stock, payable April 15, to stockholders of record at the close of business on March 31. In addition, the board of directors declared a regular quarterly dividend of $218.75 per share (equivalent to $0.21875 per depositary share) on U.S. Bancorp’s

Series B Non-Cumulative Perpetual Preferred Stock, payable April 15, to stockholders of record at the close of business on March 31. The board of directors also declared a regular quarterly dividend of $492.19 per share (equivalent to $0.49219 per depositary share) on U.S. Bancorp’s Series D Non Cumulative Perpetual Preferred Stock, payable April 15, to stockholders of record at the close of business on March 31.

CASH

• 830 in business training since 2000 • 545 graduates since 2000 • 85 percent complete 8-week business training • 30 new businesses started and 39 expanded in 2010 • 57 percent women, 21 percent people of color, 22 percent people with disabilities • 7 peer support groups with 63 business owners-members • 67 percent increased revenue from $15,125 to $70,000 • 95 percent still in business after 18 months • 74 percent increased household income • 27 percent left public assistance after completing the business training

from page 7 Get Ready Workshop is designed to help those interested in starting their own business understand the basics of business ownership. This program is for entrepreneurs who are ready to start or improve their own business. No business experience is necessary, but be prepared to work hard," Walton said. For more information about the Washington CASH program, visit www.washingtoncash.org or call Walton at (206) 914-4824, email to stuart@washingtoncash.org. Washington CASH in Kitsap by the numbers:


Own a small business? Consider these retirement plans By Jim Thatcher For a variety of reasons, many people, particularly those in the baby boom generation, are considering retiring later than they might have originally planned. If you’re in this group, you’ll want to take full advantage of those extra working years by contributing as much as you can to a retirement plan that can help you build resources, defer taxes and, ultimately, maximize income. And if you own a small business, you’ve got some attractive plans from which to choose. Let’s look at two of these retirement plans — the “owner-only” 401(k) and the defined benefit plan. If you have no employees other than your spouse or a partner, you can establish an “owner-only” 401(k), also known as an individual 401(k). This plan offers many of the same advantages of a traditional 401(k): a range of investment options, tax-deductible contributions and the opportunity for tax-deferred earnings growth. You may even be able to choose a Roth option for your 401(k), which allows you to make after-tax contributions that have the opportunity to grow tax free. Your owner-only 401(k) contributions consist of two parts: salary deferral and profit sharing. In 2011, you can defer up to $16,500 of income, or $22,000 if you’re 50 or older. The amount of your profit-sharing contribution is based on your earnings. The sum of your employer contribution and your salary deferral contributions can’t exceed $49,000 in 2011 (or $54,500 if you’re 50 or older). Keep in mind that if your spouse is employed by your business, you each can contribute the maximum amount allowed.

You’ve got considerable flexibility in funding your owner-only 401(k). Both the salary deferral and the profit-sharing contributions are discretionary, so you can change them at any time based on your business’s profitability. Now, let’s move on to the defined benefit plan, which might be appropriate for you if you are highly compensated and have no other employees. By establishing a defined benefit plan, you’ll be providing yourself with a monthly payment (or “benefit”) for life, beginning at the retirement age specified by your plan. In

2011, the yearly benefit limit is $195,000. The amount you can contribute to your defined benefit plan each year is based on several variables, including your current age, your compensation level and your retirement age. But you’ll certainly be able to contribute large amounts: A defined benefit plan is the only retirement account that allows contributions in excess of the limits placed on 401(k)s and other defined contribution plans. Generally speaking, the closer you get to retirement, the larger your maximum yearly contributions will be. (This is because you’ll have fewer years left

in which to fund your defined benefit.) And since your defined benefit contributions are tax-deductible, you are, in effect, getting a big boost from the government to fund a generous retirement plan. Here’s one more benefit to owner-only 401(k) and defined benefit plans: You can contribute to both of them at the same time. But before you choose either or both of them, consult with your tax and financial advisors. After all, you work hard to help provide for a comfortable retirement tomorrow — so you’ll want a retirement plan working hard for you today.

Timberland Bank adds Barbara Wight as loan officer May 2011 Kitsap Peninsula Business Journal•KPBJ.com 9

Michael R. Sand, president of Timberland Bank announced the addition of Barbara Wight as a loan officer. Wight will be based at the bank’s Silverdale branch but is available to serve clients throughout the Kitsap market. “We are very pleased to have Barbara join us. She brings a breadth of knowledge about the financial services industry which we believe will be a great addition to our organization and contribute further to our growth in the Kitsap market,” stated Sand. Wight has over 40 years experience in retail banking and lending, most recently as a branch manager for People Bank in Silverdale. She will focus on originating mortgage and consumer loans and personal and commercial deposits in addition to marketing the bank’s niche construction lending solutions. “I’m very pleased to join Timberland, a well-capitalized community bank built on sound fundamentals with a strong commitment to excellent customer service, local decisions and growth,” stated Wight.


New Wells Fargo survey: Small business owner optimism declines Results show diminished expectations for financial situation, cash flow and revenues After two consecutive quarters of increased optimism, the latest Wells Fargo/Gallup Small Business Index survey revealed a decline in small business owner optimism from Q1 levels. Conducted April 4-8, the Index score dropped 12 points from last quarter and now sits at a score of zero indicating that small business owners, as a group, are neutral – neither optimistic nor pessimistic – about their companies’ situations. Credit availability concerns remain unchanged with about onethird reporting that obtaining credit would be somewhat or very difficult. Fewer business owners demonstrate confidence in their financial situation, revenues and cash flow over the next 12 months. “Weaker U.S. consumer spending in the first quarter, along with a spike in energy prices, is likely behind much of the slide in small business optimism since January,” said Dr. Scott Anderson, Wells Fargo senior economist. “On the bright side, for the second quarter, optimism remains above the negative territory we experienced throughout 2009 and 2010.” The Index is the sum of the “present situation” (previous 12 months) and “future expectations” (next 12 months) of business

owners for six key measures, including financial situation, cash flow, revenues, capital spending allocation, job hiring and credit availability. The present situation declined slightly to negative 14 (-14) from negative 10 (-10) driven primarily by declines in financial situation and cash flows. The present situation score has been in negative territory since the first quarter of 2009. Despite an eight percentage point decrease from 22 in January to 14, the future expectations component of the Index remains in positive territory. The decline was driven by decreased expectations for financial situation and cash flows. “Business owners entered the New Year with increasing optimism, but it appears that slow economic growth is interfering with that momentum,” said Doug Case, Wells Fargo small business segment manager. ”Without clear signs of sustained economic growth, businesses remain cautious, and that caution translates into reduced hiring and expansion.” The following key measures served as the main drivers of the Index score during this survey period: Present situation (past 12 months):

Financial Situation – 47 percent rated their current financial situation as very or somewhat good, down from 53 percent in Q1; additionally 33 percent rated their current financial situation very or somewhat poor, up from 27 percent in Q1. Cash Flow – 38 percent rated their company’s cash flow as very or somewhat good, down from 43 percent in Q1; additionally 38 percent rated their cash flow as very or somewhat poor, up from 33 percent in Q1 Future expectations (next 12 months): Financial Situation – 58 percent expect their company’s financial situation to be very or somewhat good, down from 65 percent in Q1; additionally 22 percent expect their company’s financial situation to be very or somewhat poor, up from 17 percent in Q1 Cash Flow – 27 percent expect that their company’s cash flow will be very or somewhat poor, up from 22 percent in Q1 “Wells Fargo is committed to supporting business owners through the challenges and opportunities they face as a result of the economic environment” said Case. For more Index results and to hear a podcast by Dr. Scott Anderson, visit the Small

Business Index section of Wells Fargo’s Business Insight Resource Center at www.wellsfargobusinessinsights.com/smallbusiness-index.

Kitsap Credit Union names new Board Officers Kitsap Credit Union’s Board of Directors announced the election of its new executive officers. The Board of Directors and Committee members serve as non-paid representatives of the members. These volunteers plan and set the overall direction of the Credit Union based on the needs of the membership. The following directors were elected to serve as executive officers. The new Board Chair is Wendie Johnson, a Kitsap Credit Union member since 1990 and a strong supporter of the credit union cooperative movement. Johnson began serving Kitsap Credit Union members in 1997, and continually sought opportunities through volunteerism on a variety of committees. She holds a Bachelor’s in Business Administration KCU Board, page 11

SO MUCH PLANNING GOES INTO RETIREMENT. 10 Kitsap Peninsula Business Journal•KPBJ.com May 2011

www.edwardjones.com

Members SIPC

HAVE YOU THOUGHT ABOUT TAXES AS WELL?

It’s likely that your retirement income may come from many sources, such as Social Security, pension distributions, a 401(k) or IRA withdrawals. That’s why, if taxes are a concern for you, it’s important to choose the right investments for your portfolio. At Edward Jones, we have many options that can give you more control over your taxes, so you can enjoy what you’ve worked so hard to achieve. Edward Jones, its employees and financial advisors cannot provide tax advice. You should consult with a qualified tax specialist for professional advice on your specific situation.

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The dirty secret of clean tech By Bill Gunderson If you are thinking about investing in Green energy stocks, don’t. Not if you need the money for retirement, or college, or anything besides impressing your friends with good intentions. Because green energy companies are creating a lot more press than profits. And that will get worse before – if ever – it gets better. People in the investment business only have two ways to value a share of stock: We can listen to what the company says. Or watch what it does. If you choose the former, you probably like all the pretty pictures of windmills and solar panels featured so prominently in so many television commercials. The truth about wind and solar and alternative energy is that none of them would exist without the full-throated support of a well organized green lobby. And that together, both account for an infinitesimal portion of the energy we create. No amount of subsidies or green happy talk can change this fact: Energy from solar

still costs 22 cents a kilowatt hour. Coal cost 6. That’s not solid enough ground to build a strong portfolio. If there is one thing smaller than the energy wind and solar produce, it is the profits these energy sources add to their company’s balance sheets. Prospects are not profits. Talking is not doing. Betting on prospects is gambling. Betting on performance is investing. Last year, President Obama visited the solar power manufacturer Solyndra, the largest recipient of federal subsidies for solar power. Despite all the talk about the bright future of solar, not one major news account of that day mentioned one small fact about this company: Just a few months earlier, to prepare for a stock offering, its own accounting firm said the company was no longer a “going concern.” So it had to cancel its Initial Public Offering for stock. And that was after the hundreds of millions of dollar in federal loans. The President of the United States was betting the future of green energy on a company whose own accounting firm said

Wells Fargo reports quarterly net income of $3.8 billion Wells Fargo & Company reported record net income of $3.8 billion, or $0.67 per diluted common share, for first quarter, up from $2.5 billion, or $0.45 per share, for first quarter 2010. “Our strong first quarter results reflected positive trends in our business fundamentals as credit quality improved, capital ratios increased and cross-selling reached new highs,” said Chairman and CEO John Stumpf. “As the economy continued an uneven recovery, our business customers increased borrowing and utilization of credit lines — a hopeful sign that businesses are once again investing for growth. Consumers continue to be hesitant to borrow, yet our robust deposit growth reflects the strong loyalty and market share we enjoy among customers.” He added, “We were extremely pleased to return additional capital to our

from page 10 from Oregon State University and a Master’s degree in Legal Studies from the University of San Diego. Johnson is also a founding member of the Willow Charitable Foundation, supporting homeless causes across the nation. The new Vice Chair is Bill Rumbold, who retired as Captain from the Navy’s Civil Engineer Corps and has been serving as a Kitsap Credit Union Board volunteer for the past fourteen year. Terry Thomas will serve as Board Treasurer. Having spent time on various Credit Union Committees, including the Supervisory and Investment Committees, Thomas’ passion for the community directly coincides with the Credit Union’s pledge to serve local working families. Active community volunteer, Jim Rowson will serve as Board Secretary. Rowson’s previous experience includes directorships at several different community organizations and 25 years as Harrison Hospital’s Chief Financial Officer.

any business can imagine. It is not in the least political to say our leaders in Washington are losing their appetite for – and ability to – heap subsidies on expensive energy while ignoring abundant domestic supplies in times of record scarcity. Already, some big funds are getting out of green energy because investors want something that actually makes money. So should we. (Editors note: Bill Gunderson is the owner of Gunderson Capital Management in Oceanside, Calif. And hosts a show on KCEO radio about investing in stocks. He is also the author of “The Best Stocks Now!”)

Business owners: Thinking about starting your exit strategy? If you are thinking about starting your exit planning, here are some ideas to think about from Bob O'Hara the owner of O'Hara & Company and creator of an educational website for business owners (www.exitplanning-edu.com): • What are your goals for you and your business? What do you want to accomplish personally and what would you like to see your business achieve? • Know what the value of your business is today and why your business is worth what it is. An independent valuation assessment at the start of your planning will put a stake in the ground for your future planning. • What do you need to put in place to make your business independent of you? • Identify the additional systems & processes that need to be put in place for the business succeed in your absence. • How long do you want to be involved in the business? • What type of involvement do you want to have in your business? • Identify the key employees that can run the business in your absence. • Start to put together a team of advisors that will help you through the process. • Assess your ability to be financially independent of your business.

Kitsap bank’s first quarter earnings increase 250% Kitsap Bank reported earnings of $1.46 million for the first quarter 2011 compared to $417,000 one year ago, up $250%, marking their best quarterly results in two years. The Bank distributed $800,000 in quarterly dividends to shareholders on March 31. Nonperforming assets are down substantially; and are well-controlled at only 1% of assets, among the lowest in the State of Washington. “We are very pleased with our results, and we continue to improve,” said Jim Carmichael, President and CEO. “Kitsap Bank enjoys the benefit of a conservative credit culture, which has resulted in rapid improvement in the bank’s asset quality and earnings. We have worked to build market share across our fivecounty service area, and we continue to be the largest of any bank in Kitsap County, with 22% market share.” Core deposits increased 8% year over year, and the bank remains very liquid and solidly capitalized. Established August 8, 1908, Kitsap Bank is headquartered in Port Orchard, WA, operating 20 locations throughout Western Washington. With nearly $900 million in assets, the bank provides a full range of financial services to commercial and individual customers. Kitsap Bank has been named a Preferred Lender by the U. S. Small Business Administration.

May 2011 Kitsap Peninsula Business Journal•KPBJ.com 11

KCU BOARD

shareholders in the first quarter with an increased common stock dividend. This action, coupled with the reinstatement of our common stock repurchase program and the calling of certain high-cost trust preferred securities, reflects the continued strength of our capital position. Our focus is on improving our efficiency, investing wisely, making every good loan we can, helping customers emerge from the economic downturn, and building an everstronger capital base.”

would not be in business for long. If you are investing in a company – green or not – because of promises, and not a record of earnings, you are doing the same thing. Little noted in the green frenzy of the last few years are the companies that drill or pump or mine for oil, natural gas or coal, They are making money. They never stopped – even during the financial tsunami. What they say is not that sexy. What they do is. CSX makes money running railroads. Caterpillar makes money building trucks. Golar makes money carry liquefied natural gas. And they are doing so despite one of the most challenging regulatory environments


Doctors reunite at new Poulsbo location Sound Family Health announces the opening of its new office in the Cascade View Medical Center, just south of the Olympic College Poulsbo campus. Founders Charles W. Power, M.D., Mark C. Hoffman, M.D., Teresa A. Andersen, M.D., and Brad L. Andersen, M.D. are back together under one roof after two years practicing at opposite ends of the county. The doctors are excited to return to Poulsbo where they previously practiced for ten years. “It feels good to be back and using our collective experience to serve the community,” says Power. The new location allows Sound Family Health to be part of a medical campus that includes a state-of-the-art imaging center, specialists, an in-house lab, and ample parking. "I think our patients are really going to love the convenience of truly top-level care in one easy location, and our ability to offer same-day appointments," Power explains. “With four of us and a great facility, we are really focused on getting patients the care they need, when they need it.” Sound Family Health specializes in family medicine and is currently taking new patients. Office hours are 7:40 a.m. to 5 p.m., Monday through Friday. For information or to make an appointment, call (360) 394-3500.

Rep. Angel opens district office at new Port Orchard location With the closure of the regular session in Olympia, Rep. Jan Angel will be re-opening her 26th District legislative office at a new location. Angel’s new office will be on the second floor of the South Kitsap Town Square Mall at 1700 Southeast Mile Hill Drive in Port Orchard. It is staffed by Angel's legislative assistant, Debbie Austin. "The mall is a great location and very convenient for local citizens. I believe it is vital that government is accessible to the people it serves. The district office is a place where people know they can come to discuss legislative matters and other state government issues that affect their lives. By maintaining an office in Port Orchard, I can provide better access for constituents in the 26th District," said Angel, R-Port Orchard. “For those citizens in the Gig Harbor area and other places in the district, I'm very willing to frequently come to their communities and meet with them at one of the local coffee shops. Just call my office and we can set it up." In addition to a new office location, Angel also h as a new district office phone number: (360) 443-2409. The mailing address is: 1700 S.E. Mile Hill Drive, Suite 236, Port Orchard, Wash., 98366. The office will be open Monday through Friday. Angel said citizens are welcome to drop by, or they are invited to call the office to set up an appointment with her. Angel can also be contacted via e-mail through her Web site at: www.houserepublicans.wa.gov/Angel.

Paratransit Services provides building for homeless shelter A formal dedication and ribbon-cutting ceremony for a new homeless shelter in West Bremerton took place April 18. Named “Georgia’s House” in honor of the late Georgia Mattson, a local resident who advocated for people who are homeless, the new shelter will provide housing for homeless women and their children. The project was spearheaded by the Weaver Foundation (a group based in Port Orchard) in partnership with the Bremerton Rescue Mission. Paratransit Services, a Bremerton-based nonprofit company, is leasing the building for the shelter for a nominal one dollar per month. Ceremonial presentation of the facility was given by Paratransit Services Board of Directors President Bill Mahan, who noted that the building was to be “dedicated for the purpose of providing shelter for those in our community who have temporary need for help.” Also representing Paratransit Services at the opening were Paratransit Services Directors Mary Ann Huntington and Lois Anderson. Other speakers at the event were Bremerton Mayor Patty Lent, Weaver Foundation President Leann Weaver, and Cynthia Blinkinsop, daughter of the late Georgia Mattson. Dedication of the Georgia’s House shelter was given by Rev. Larry Eddings.

Local craftsman opens new business specializing in custom woodwork

12 Kitsap Peninsula Business Journal•KPBJ.com May 2011

Emil Ellis has established Mountain View Fine Woodworks, and specializes in designing and building solid wood furniture that is customized to the specific needs of each client. At Mountain View Fine Woodworks Ellis works mostly with American hardwoods, but will sometimes use exotic woods like ebony for accents. Along with the items listed in his online catalogue, he is also working on designing and building one of a kind furniture pieces. Several different styles inspire his designs including Shaker, Craftsman and Asian influences. Mountain View Fine Woodworks is based in Kitsap County but serves all of Washington State. View the current product line at www.mountainviewfinewoodworks.com.

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Rush Custom Homes opens new showcase home in Canterwood Rush Custom Homes has opened the doors of its new 3,900-square-foot showcase home in the Canterwood neighborhood. Thelma Channon, the listing agent for the 23 currently available Rush lots, reports that the open house tour on April 16 and 17 was attended by over 500 people and garnered a full-price sale offer by the end of the weekend. The home will be open every weekend this spring from 1– 5 p.m. “This incredible home was built as the standard to which each Rush-built home is upheld,” says Jarrod Fenberg, vice president of Rush Custom Homes. “Inside and out, we maximized the potential of every square foot. The thoughtful layout accounts for ample privacy, living space, flex space and natural lighting. This home speaks to today’s value-driven buyer by exhibiting our ability to design and build a luxurious home that lives comfortably and efficiently.” Rush designed and built the showcase home with rich architectural details and premium quality materials; all state-of-the-art in form and function. The home was built with 40-year roof, cedar shingles and trim, and stone. Luxury amenities include Wolf, Sub Zero and Miele appliances, marble and granite surfaces, energy efficient heating and cooling systems, insulation and triple-pane windows, and Control 4 Smart Home technology to integrate controls for each of the home’s comprehensive systems including lighting, temperature, security and audio/visual. Locally sourced building materials contribute to the home’s ecofriendly design. Scott Selden, owner of the Tacoma, based furniture retailer, Selden’s Home Furnishings, outfitted the entire home with the premier Stickley brand. “A home like this one deserves furnishings that match its traditional style and modern appeal. We were honored to be Rush’s choice for making that match. Stickley was a perfect choice because each piece complements the timeless Craftsman style of the home.”

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BAD NEWS, GOOD NEWS

Gig Harbor’s retail comings and goings reflect national trends profound adjustment, and I don’t see it reversing any time soon,” he said. “The retailers are doing well because they have a low price and high price mix.” He said the Uptown retailers saw an average of 10 percent increase in sales in 2010 over the previous year. That’s better than the 7.9 percent growth in retail sales nationally last year, and better than the growth seen by the city in sales taxes (Gig Harbor collected just over $4.6 million in sales taxes in 2010, slightly up from $4 .5 million in 2009 and compared to $5.6 million in 2008, a year that saw a 20 percent drop in sales tax). Gig Harbor City Administrator Rob Karlinsey said the steep drop in sales tax income has resulted in major cuts in the City’s budget, since sales tax is the main source of revenue for the city. But while this year the city expects the sales tax to remain about the same or show a slight increase at best, he noted that building permit fees have been going up since last year. “We’re certainly not back to 2000 levels, but we’re up compared to 2009, when we had an almost 70 percent drop in building permits,” he noted. New construction includes a 35,000square-foot “farm lifestyle” store Wilco. The cooperative store, based in Oregon, is being built at the site of Stroh’s gardening shop near downtown. Also in the works is a new shopping development near Uptown that will include an expanded Safeway and several smaller retailers, including Kohl’s. The new Safeway, which broke ground in April, will be located behind the current store, which was built in the 1980s and will be demolished. It will have an additional 15,000 square feet and add about 15 to 20 jobs. District Manager Jay Rothermel said the expansion has been planned for a few years because the current store is outdated and outgrew customer demand. “The current facility has served the Gig Harbor community well but it’s worn out and overcrowded,” he said. The new facility will both be more customerfriendly and lifestyle-focused on the inside, and better match the character of Gig Harbor on the outside, he said. “There’s nothing like it in the area,” Rothermel said, adding that the new shopping complex’s design will complement its neighbor, Uptown, and look like it’s part of the same center. He didn’t exclude the possibility of a gas station in the future. Gig Harbor has gone through a boom in retail construction in the early 2000s. Just a little more than a decade ago, the main place to buy housewares in town was Ace Hardware, and apparel choices consisted largel y of boutiques located downtown. An influx of chain stores started in 2000 with Les Schwab and Target, then Home Depot and Costco followed suit soon after, and Uptown brought in another wave of national stores

a few years later, including Coldwater Creek and Borders. But even with all the new stores, Gig Harborites still end up driving to Tacoma or Kitsap County for some shopping. “Are there stores we don’t have? The answer is yes, there’s sales tax leakage,” Karlinsey said. “Having said that, we still have a lot of stores struggling right now, especially downtown.” Downtown has lost several local retailers over the last year besides QFC. Mayor Chuck Hunter said, however, that the city has been working on making the downtown more attractive with various amenities including new parks and is developing a plan to help the struggling downtown businesses. Overall, he said, despite the brutal economy, Gig Harbor has fared well compared to others. “I think the city is (still) attractive — probably more attractive now than before, with the new hospital and the new bridge,” he said. In addition to adding new services to the peninsula, St. Anthony Hospital has also proved a boon to the real estate market. Stephen Dadabo, a broker with the Keller Williams real estate agency in Gig Harbor, said many new residents are medical professionals, who can buy homes in an area that’s less affordable to first-time homebuyers but very attractive to those buying their to second or third home. “Over the last year, I’ve talked to a lot of doctors, technicians and medical specialists coming from King County, Tacoma, University Place (and othe r areas) who are second-home buyers,” he said. He sees a lot more potential for development, especially alongside the State Route 16 corridor. “There’s still a lot of dirt to be turned over,” he said. And according to Hunter, the city is ready. He said they’ve been working on adding more commercial capacity by building a new wastewater treatment plant, a new water line and other infrastructure. “We’ve got a l ot of developers with their entitlements so there’s a lot of building sites ready to go. I think we’re well-positioned for the near future,” he said. One of the developments waiting to get rolling is another shopping complex, on the other end of Point Fosdick from Uptown. Fred Meyer has been trying to build a new store that would serve as anchor but the project had been stalled, partly due to the economy an d partly because the company wants to build a facility larger than the zoning would allow — Fred Meyer’s original attempt was for a 150,000-square-foot or larger center, which has been scaled down since to 100,000 square feet, but that’s still above the 65,000-square-foot limit. Seattle Pacific Realty broker Randy Boss said the project, called Olympic

Towne Center, was ready to go two years ago but the city would not consider a zoning change, even though the store would have created 200 jobs and added $2 million in sales taxes to city coffers. After downsizing the plans to 100,000 square feet, the company modified its application last July and has been waiting on the city’s planning commission to consider the rezoning. “We have agreements with our anchor tenants and could have been under construction last year, except for the delay and uncertainty created by the city,” he said. “It was especially frustrating to see one of our previous anchor tenants, Kohl’s, end up at the redevelopment of the Safeway project because they simply could not wait any longer for our project to deliver.” He said one of the added challenges is that it costs a lot more to build in Gig Harbor because of the city’s strict design guidelines , so even though several national retailers would have been interested in leasing the space, they could not afford the higher rates that are driven by the expensive development costs. “Given the economic climate of retail in general in the United States these days, it has been a challenge to secure any ‘viable’ retailer who is strong enough to last through a 10-year lease terms and then, once we clear that hurdle, we need to find a stable tenant that can pay sufficient rent to warrant the new construction costs and all the rest of the expenses associated with the development of a new shopping center,” he said. Nonetheless, he said the property owners are ready to move along as soon as the city addresses the rezoning. Hunter said in March the planning commission has been busy with a state-mandated shoreline pla nning process, but that should be wrapping up this summer and the Fred Meyer project would be next on the agenda. If the project moves forward, it won’t be the last retail addition in the near future. Uptown still has buildable space, and Hogan said the landowner will submit for an extension to its five-year site plan, which is due to expire in May. “We foresee in two to four years adding a couple of buildings,” he said. “The economy is not out of the woods yet; however, with the length of time to preplan, build, lease (etc), you have to build-in the time to do everything in order to meet the cycle of the market.” From Dadabo’s perspective, that kind of continued growth will also spur a rise in population. He said more retail and services bring in more people, and more people attract yet more retailers, so it creates a circle. All the retail growth in the past decade “is huge because people want to do all the peripheral services available when they move into a community,” he said. “I expect that cycle (of commercial and residential growth) to continue.”

May 2011 Kitsap Peninsula Business Journal•KPBJ.com 13

A few big stores have closed their doors in Gig Harbor in the past few months, the latest victims of the recession as well as the shift in consumer trends. But city leaders say it’s really more good news than bad news because several new retail developments are underway and the city is positioned well for more commercial growth once the economy swings around. The closures and openings of larger retailers in the city reflect nationwide trends —estimates show that the number of openings around the country will outpace closures in 2011, and many chain stores continued to open new locations by the dozens in 2010. And Gig Harbor has done relatively well compared to other towns when it came to avoiding empty storefronts. “One of the blessings for the community and the retailers is that it’s not over-retailed, you don’t have sign pollution or a lot of dark storefronts,” said John Hogan, a Gig Harbor native who developed the Uptown Gig Harbor shopping center. “Collectively, the city of Gig Harbor and the planning department have been able to harness development and have it going at a controlled rate — it doesn’t mean it’s kept all retailers healthy, but it’s minimized the impact of the economy.” Uptown lost a major retailer in midApril: The Gig Harbor Borders, along with the Tacoma store, was one of the three locations in the state slated for closure in the first wave of cuts when the national bookstore chain announced bankruptcy and downsizing in February. Also gone is the downtown QFC, which closed in February, citing lack of patronage, and created a pass ionate campaign by residents to bring another grocery store in its place. QFC’s exit was followed just a few weeks later by Rexall, located in the same shopping plaza on Judson Street, selling its pharmacy portion to Walgreens. And a longtime Gig Harbor North tenant, a video rental and videogame store, abruptly closed earlier this year. Borders had a 10-year lease that was no more than halfway through and Hogan has been talking to new potential tenants. “There’s good interest. The rents softened from the height of the market so lease rates would be lower,” he said. As of mid-April, he said two national retailers were finalists in serious discussions but he couldn’t disclose names. He expected a new business to move in between this October and next March. When Uptown opened, it was envisioned as a lifestyle ce nter that catered more to the trendy, upscale crowd. But the economy has shifted the view of lifestyle centers around the country, Hogan said, with more department and discount stores being added to the mix in order to attract a wider demographic. “I think the recession has gone on for so long that people’s buying habits had a


14 Kitsap Peninsula Business Journal•KPBJ.com May 2011


Sirius business: How to become a star The Dog Star (Sirius) is a symbol of power, will, and steadfastness of purpose, and exemplifies the One who has succeeded in bridging the lower and higher consciousness. – Astrological Definition attitude will carry over to others and put you spirit. Whenever I finish a new column or By Dan Weedin (Editors note: Dan in a position to enjoy a terrific day. Basically, article, I reward myself by buying a new Weedin is a Poulsbo-based I regularly take my canine pals Captain your attitude is what makes your own luck! song for my iPod. May seem like a minor management consultant, Jack and Bella out for a walk during the days Sniff out your competition. It’s foolhardy thing, but it’s something I look forward to, speaker, and mentor. He helps I’m working from home. They get very not to know what your competition is doing. just like the dogs look forward to their treat. entrepreneurs, organizations, excited when I utter the word “walk.” That Be cognizant of your similarities and How much more effective would you be if and small business owners to changes momentarily when I pull their disparities. Be prepared to articulate to your you rewarded yourself regularly for your create remarkable results harnesses out. They hate being manacled in prospects what makes you different, if not a jobs well done? through leveraging the power this unsavory fashion (I think they’re afraid of better value. Don’t you think Apple knows Dogs are lucky. They do things naturally of relationships. He is one of only 28 consultants in what the other dogs are saying). Once what Microsoft and Google are doing? while we humans often need to learn. the world to be accredited as an Alan Weiss Master harnessed and leashed, they fly out the door Reward yourself. When you’ve Fortunately, we can use them as good Mentor. You can reach Weeding at (360) 697with great vigor to stretch out their legs. accomplished something, even if a small teachers. 1058; e-mail at dan@danweedin.com or visit the Captain Jack seems to just enjoy taking a item, reward yourself. It’s good for the Let’s go for a walk! web site at www.DanWeedin.com.) stroll. Bella on the other hand is constantly on the lookout. Any smell, sight, or inkling of another dog throws her into a high level of perspicacity. On meeting other dogs, she is very careful to do a complete investigation to determine their intentions. I don’t know how she does this, but she’s very good at it! Once accepted, the dogs part company and we finish our walk. Before heading back to the office to work, they each are given a snack for a job well done. You can learn a lot from a dog. Empirical evidence shows that dogs by their very nature behave in ways that we mere humans can learn from in our business behaviors. My story of our daily walk brings five of those lessons into view… Find out why many families on the Strive for Consistency. Dogs crave move look to us — whether their consistency. Whether it’s their walk or napping by the heater in my office, they are journey is across town or around the creatures of habit. There are things in our world. We take care at every step and world we should make habitual. For instance, marketing activities, goal setting, reading the enjoy a long list of repeat customers. local and national business journals, returning phone calls and e-mails promptly, and inspiring your employees. Show restraint. The dogs need to be restrained in their harness for their own good and health. Many times, our mouths and pens need to be restrained from embarrassing ourselves. Show discipline in your actions. Always re-read those e-mails when you’re angry before you hit “send.” Pause and think before you speak. You never can get the toothpaste back in the tube, and you can’t pull back sent e-mails and pernicious words. Meet challenges with reckless abandon.  Nationwide, local & My dogs literally fly out the door for their daily jaunts. You should do the same to meet international moving your day. Each day will be filled with success and adversity; normalcy and challenges. If you  Long-term heated storage choose to enter that day with apprehension or service dreariness, then you will be bound to infect others with that attitude and your day has little  Our people and our moving chance of success. But, if you attack your day with vim, vigor, and vitality, your positive supplies set us apart

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The newest car dealership in Kitsap County, Silver City Automotive in Silverdale, has started a charitable giving program, donating a portion of its monthly proceeds to local charity and non-profit groups. As its first recipient, Hospice of Kitsap County received a check for $1,000. Heartbeat Serving Wounded Warriors, was the second recipiant. Reach Silver City Automotive at (360) 337-1600.

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May 2011 Kitsap Peninsula Business Journal•KPBJ.com 15

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Project Delivery Analysts LLC announce new partner

L&I launches campaign encouraging homeowners to hire registered contractors

Bill Jones has joined Project Delivery Analysts LLC as partner and will lead its Pacific Northwest office located on Bainbridge Island. Jones has thirty years of general contracting and construction consulting experience over a range of civic, institutional and medical projects, many on the Kitsap Peninsula. He was lead estimator for Olympic College Poulsbo at the construction document phase. He also provided feasibility level pricing for the Winslow Tomorrow streetscape and infrastructure improvements. A licensed civil engineer, he provides a unique understanding of site work challenges and costs. Project Delivery Analysts LLC offers preconstruction and construction phase management services, with offices on Bainbridge Island and in Los Angeles. Jones may be reached at (206) 799-9345 or wjones@pda-llc.net.

In spite of years of doing nothing to enforce the laws already on the books, as spring and summer remodeling projects begin, the Washington State Department of Labor & Industries (L&I) is launching a statewide radio advertising campaign urging homeowners to protect themselves from being taken advantage of by unregistered contractors. “When it comes to hiring contractors, the lowest bid can come at the highest price,” says Carl Hammersburg, Fraud Prevention and Compliance Program manager. “Fortunately, L&I offers a number of ways for homeowners to protect themselves.” Legitimate contractors have been urging L&I to enforce the laws against unregistered contractors for years, but those pleas have fallen upon deaf ears as the agency preferred to turn a blind eye to the problem. The radio ads direct visitors to Hi r i ngaCo nt rac to r. L n i . w a .gov www.lni.wa.gov/TradesLicensing/Contract ors/HireCon/Checklist/before1.asp, where homeowners can see if their contractor is registered, bonded and insured. They also can check whether a contractor has any citations or unpaid judgments. Unregistered contractors underbid their competition because they misclassify their workers to dodge unemployment taxes and workers’ compensation insurance

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16 Kitsap Peninsula Business Journal•KPBJ.com May 2011

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premiums. They also do not carry a bond or insurance, which can sting a homeowner should something go wrong with the job. About half of homeowners interviewed to prepare for the ad campaign said they didn’t know if a contractor they used in the past was registered. The 2008 Legislature funded the statewide-campaign to make more consumers aware of the need to hire only registered contractors. “This campaign is the first step in tackling the underground economy,” said Senator Jeanne Kohl-Welles, who chairs the Labor, Commerce and Consumer Protection Committee, and helped pass the 2008 legislation. “We want to empower consumers to make smart choices, and reduce demand for contractors working underground.” HiringaContractor.Lni.wa.gov, of fers consumers easy-to-follow checklists of what to do before, during and after their home improvement project including: •What protections should be included in your contract before work begins •How to protect yourself against liens •How to identify a scam •Other tips and tools to protect yourself and manage your construction project Consumers without internet access can check the status of their contractor’s registration by calling (800) 647-0982.

BHA has grant funds for local non-profits providing housing related services The Bremerton Housing Authority (BHA) has grant funds to award to local non-profit organizations to support lowincome housing programs that provide housing or housing related services. These funds are available as part of the funding BHA receives to fund the redevelopment of Westpark into Bay Vista. The first dollars available will come with the completion of The Summit at Bay Vista this June. As each of the next two phases of development is concluded, additional funds will become available. BHA intends to award grants in the amount of $10,000 to each selected organization. Although the total amount of dollars to be awarded will depend on the final cost to complete each phase, it is estimated that BHA will have approximately $90,000 to give away, contingent upon final approval by the Washington State Housing Finance Commission. Interested organizations are asked to submit proof of their non-profit status and a narrative not to exceed 500 words of how the money would be used to support local housing needs. Submit the required information to PO Box 2189, Bremerton, Wash., 98310 Attn: Donation Request.


Coldwell Banker Park Shore Real Estate marks 50 years in business Real Estate Institute. Much has changed in the industry since Smith first started as a real estate agent in 1978. For one, the Multiple Listing Service didn’t exist yet so agents were dealing mostly with properties that came through their office. “There was not a lot of information sharing. MLS came in the late ‘70s, early ‘80s and it changed how Realtors did real estate,” he said. Smith was on the board of directors for Kitsap County’s multiple listing service, which decided to join King and Snohomish MLS, now known as the Northwest MLS and encompassing 20some counties. He then became involved with the Northwest MLS board. “Real estate agents can now help clients around the region — and, with the Internet, pretty much everywhere,” he said, noting that the new discussion in the industry is whether or not to even continue using the multiple listing service since there’s other options available. Many Realtors have come and gone in the past three or four decades; just the downturn in the recent market caused numerous agents to move on and longtime agencies to close. Smith said the key to being successful through the ups and downs is by being conservative and planning ahead. “If you’ve been in the business for a while, you come to understand the market will change, and it happens roughly every 10 years. I’ve seen it three or four times,” he said. “I could see it coming (a few years ago) — when appreciation is far beyond traditional rates, you know it will dive off the cliff. There’s indicators there, warning of things to come.” He said the recovery is happening but it is slow, which is actually healthy because it’s more sustainable in the long term. He said his office made it through the downturn by both setting aside money and being conservative with how it did business. “You need to be careful, just like consumers need to be,” he said. “…Bottom line, you need to be methodical and conservative in your approach.”

Tim Ryan Construction, Inc. (TRC) announced the completion of its most recent project, The Bremerton Bar and Grill. Located at 190 Pacific Avenue in downtown Bremerton, the former bank building has been transformed into a comfortable and inviting place. “It has been an absolute pleasure to work with Tim Ryan Construction. They truly care about the end product, schedule, and are very conscious about how each decision can impact the overall budget. We look forward to working with their team again in the future,” said Chris Cole of Sher Partners. The new facility features open wood ceilings, a hand crafted wood bar top and structure, wood trim and stained concrete floors. The old bank vault remains and will serve as a private dining room. It features wood wainscot, artwork and intimate lighting. Industrial light fixtures and Navy Yard murals tie the industrial themed bar and restaurant to its neighbor to the south The Naval Ship Yard. Two patios located at the south will offer outdoor seating with a view. An extensive sound system as well as numerous flat-screen TV’s will offer entertainment for everyone. The exterior of the building received a facelift with a new brick entry drive, parking lot, landscaping, metal siding, windows and roof. This American-Style, family-friendly restaurant is recognized for award winning menus, fun happy hours, and fast and friendly service. “We have great confidence in downtown Bremerton and in the restaurant operators of Bremerton Bar and Grill. They do a great job and at an affordable price”, said Ron Sher of Sher Partners, the developer of the project. The architect for the project is Michael Whalen of Seattle. For more information, contact Tina Leany at (360) 779-7667 ext. 102, or via email at Tina@TimRyanConstruction.com. Visit the website at www.TimRyanConstruction.com.

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By Rodika Tollefson Park Shore Real Estate, the county’s oldest real estate agency affiliated with a national brand, will mark its 50-year anniversary this month. The company, based in Port Orchard, has more than 20 brokers currently, and many other area real estate professionals have roots with it. The beginnings of Park Shore have an interesting history. The real estate office opened its doors 50 years ago in Port Orchard to serve primarily those looking to buy real estate in the Parkwood subdivision. Founder Howard Raught, who also owned Shorewood Realty in Gig Harbor, soon took up a partner, local insurance salesman Jerry Lyman. Raught wanted to develop real estate and was interested at the time mostly in the area that is now known as Parkwood, which was home to more than 30,000 people. When the federal government put up the property for sale, the state had considered buying it for a prison. Local residents raised the alarm, however, and the prison plans moved to Shelton, in Mason County, instead. Raught and Gig Harbor fisherman Nick Torabochia, well-known in his community, purchased the 200-plus property for $211 an acre. Lyman set up an office in the West Bay Shopping Center, newly opened at the time, and he ran the real estate operations and an insurance business at the same time. While Park Shore developed Parkwood throughout the ‘60s and the ‘70s, the company also helped create the Parkwood Community Center, South Park Shopping Center and other areas. To pay tribute to that rich history, Park Shore will celebrate its anniversary, on May 21, at Parkwood Community Center. The event will include music, food and historical slideshow for a little nostalgia, as well as door prizes and other things. Response has been good so far, and several hundred people are expected for the 3-7 p.m. party (RSVP to focuson50@cbparkshore.com if you’d like to attend). Park Shore has grown through the years, as Lyman stopped selling insurance and expanded his real estate focus instead. He purchased other real estate offices while also setting up operations in other areas of Kitsap County. In the early ‘80s, he was back down to two offices but looked for a national affiliation. “I was looking for a franchise that had an excellent customer service reputation, that was progressive-thinking and that offered relocation/referral service, especially since we had such a strong military customer base,” he said. In March 1982, he became the first Colwell Banker affiliate in Washington State. “In those early years, there were only a few real estate offices in Port Orchard and no franchises but maybe one,” said Randy Smith, the designated broker who owned Bill Herdman Real Estate with Jim Bryan and merged with Coldwell Banker Park Shore in 1992. Smith is now the sole owner of the company, following Lyman’s retirement more than a decade ago and Bryan’s sale of his interest as he went on to open the Book ‘Em bookstore. Besides real estate sales, the company offers property management services, contract collection services and a real estate school called Basics and Beyond

TRC completes the Bremerton Bar & Grill


18 Kitsap Peninsula Business Journal•KPBJ.com May 2011

Do you have a “work spouse?” By Julie Tappero, President West Sound Workforce Quite a few years ago, I worked with a man whom I adored. We had a great relationship, in which I could anticipate his every need. I knew when he needed a cup of coffee, and what he took in it, I could predict his lunch order, I reminded him when one of his 8 children was having a birthday, I told him when he was too cranky and hard on his staff, and I finished his sentences for him. Lucky for me, my husband didn’t mind. He liked m y “work spouse” too. Wikipedia defines a work spouse as “a coworker, usually of the opposite sex, with whom one shares a special relationship, having bonds similar to those of a marriage; such as, confidences, loyalties, shared experiences, and a degree of honesty or openness.” According to Careerbuilder.com, you might have a work spouse if you can be bluntly honest with this person about their hygiene or appearance, they’re the first person you seek out when something big happens at work, they know almost as much about you as your real life spouse, you depend on them at work for supplies or snacks, and the two of you share inside jokes that know one else understands. As more and more women work full time, and all of us spend more of our waking time in the workplace, it is becoming increasingly common for people to develop work spouse relationships. The first time the term “work wife” was used was in the 1930s, when the term was coined by a film with that name. Now, decades later, work spouses have become so common and recognized that surveys and studies are being conducted on them. Captivate Network’s survey of employees with work spouses found that 55 percent keep the interaction confined to the office, 59 percent discuss at-home problems with their work spouse, and 35 percent discuss their sex lives. 67 percent said their work spouse influences their buying decisions — and in certain incidences, to a greater extent than their own spouse! Whether or not you have had a work spouse, we all can think of examples of them. One famous example could be President George W. Bush and his Secretary of State Condoleezza Rice. It was reported that they could communicate through body language or just a couple words, and had a very close

personal relationship which sometimes led to water cooler speculation. In fact, on one occasion she slipped and referred to the president as her “husband.” In a CareerBuilder survey, respondents noted other examples such as Regis Philbin and Kelly Ripa, and Meredith Vieira and Matt Lauer. So why do you, as a business owner, manager, or human resources professional, care whether your employee has a work spouse? The real question becomes: does it benefit or harm the workplace and the workers? There are definitely benefits to these close working relationships in the workplace. If the employees work on the same projects or in the same department, their closeness may enable them to be supportive of eac h other and more productive. They are safe confidants for each other, and they provide one another with a place to bounce ideas around and get honest feedback. Employees are more likely to stay with a company when they enjoy the people they work with, and will be more reluctant to leave a company when they leave their work spouse behind. They can let off steam together, and help each other maintain positive morale and perspective on the job. There can also be downsides to these close work relationships. For instance, other employees may feel left out. If one of the “spouses” is in a supervisory position, it can lead to claims of preferential treatment from others. The relationship can lead to gossip and speculation, which can become a workplace distraction. The work spouses can develop too much of a friendship, and their workday can be taken up by fun instead of by work. For some people, the work spouse relationship can cross the platonic line, and develop into something that creates problems for their real world spouses. The other issue that can arise is when the “work marriage” dissolves. A workplace separation or divorce can be as traumatic as a real one. Any relationship can be rocky, and these are no different, except that the business expects productivity and teamwork to always be present. The relationship breakup has to be handled in a way that it doesn’t negatively impact co-workers, the team, the department or the projects. How and when, then, do we as managers become involved? We don’t want to discourage co-workers from becoming

good friends. On the contrary, we’re always preaching teamwork to the troops. When two people have an obviously very close relationship, though, we can address it from the standpoint of productivity, propriety, and morale. Neither party should be in a position to make decisions about the other person’s salary, promotions, or career enhancement. There is just too great of a potential for other employees to feel that favoritism exists. Promote healthy and family-friendly relationships. Sometimes work spouses become too close, blurring the intimacy lines, and the relationship crosses over into something more personal. Now you’re into a whole different set of problems. To prevent that, encourage them to involve others in their circle, hold open door meetings, put them on different projects, hold social events that include spouses and significant others, and don’t send them on out of town trips together. Dr. Phil suggests work spouses not share private information about their marriages, never drink together or be alone with each other outside the job, make sure their real spouse knows their work spouse, and keep the lines of communication open between their real life spouse and other coworkers so everyone’s in the big circle together. Open the lines of communication in your company and do some training. When you’re discussing teamwork, incorporate discussions on work spouses (or “work siblings” as some HR folks like to refer to them to take the sizzle out of the relationship). Assist your staff in understanding the relationship dynamics they or their coworkers are in, how to manage them for the benefit of the organization and themselves, and what to do when the situation goes awry. It’s a lot easier to talk about it before there’s actually a problem. If you observe that the relationship is deteriorating, become proactive. Take care that neither party is in a position to make decisions that will affect the other’s job assignments or career opportunities. If the relationship turns negative, you can intervene, treating it like any other coworker relationship situation, offering solutions that assist the parties in working together in a cohesive manner. Since 65 percent of those surveyed said

they have or have had a work spouse at some time, we will all at some time be in such a relationship or will deal with this in our workplaces. I’m afraid that I, might now, be in a polygamous situation at work myself. At least with these spousal relationships, we avoid engagement rings, wedding showers, expensive ceremonies, and of course, all of the gifts. Hopefully, what we do get with them, is all of the benefits of two people who are so in tune, happy to be working side by side, that every day they’re happy to come to work and do a great job together. (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.)

BGI names Gardner as Dean of Academic Affairs The Bainbridge Graduate Institute (BGI) has announced that John Gardner Ph.D. will be the new Dean of Academic Affairs. Gardner previously served as vice president for Advancement and External Affairs at Washington State University. Founded in 2002, BGI’s evening and weekend Sustainable MBA and certificate programs are designed to integrate economic, environmental, and socially responsible business practices and education. Gardner has long worked in agriculture, both at land grant universities and at startups focusing on novel ways to achieve sustainability. He will also seek an adjunct appointment in the Crop and Soil Sciences Department at WSU. “The work of organizations like WSU and BGI are highly complementary, and I hope to demonstrate that through my efforts.” said Gardner.

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May 2011 Edition

Events And Activities Wednesday, May 4th Auction Committee, 12:00 p.m. Los Cabos-Silverdale Kitsap HBA Remodelers, 4:00 p.m. Thursday, May 5th Developer’s Council, 7:30 a.m. Tuesday, May 10th Peninsula Home & Remodel Expo Cmt. Noon Friday, May 13th PIRATES of the HBA Dinner and Auction Kitsap Golf and Country Club 6 p.m. Social and Silent Auction RSVP to HBA

McKenzie Cowell Memorial Scholarships Available. Students, Apply Now The Building Industry Association of Washington is proud to announce the McKenzie Cowell Memorial scholarships are available to assist and encourage workforce training in the construction industry. Since the Scholarship Program’s inception in 2001, BIAW’s Education Committee volunteers and BIAW staff have devoted countless hours resulting in the award of 235 scholarships totaling nearly $340,000. BIAW continues to recognize education as the very core of our industry, and the Scholarship Program Supports those students that have selected home building as their life’s work. Scholarship Application forms are now available on BIAW’s website at www.biaw.com or by calling Amanda or Jan in the BIAW Education Program at 800-228-4229. Completed Applications must be postmarked by May 13, 2011. Known as the “voice of the housing industry,” the Building Industry Association of Washington is the largest trade association in Washington State, representing over 10,000 member companies involved in the homebuilding business. The Home Builders Association of Kitsap County would love to see some local students receive scholarships from this fund to help them achieve their goal of education beyond high school. Good luck!

HBA DINNER & AUCTION

Wednesday, May 18th Golf Committee Mtg. Rolling Hills Golf Course, 4 p.m. Saturday, May 21st CPR & First Aid, 10 a.m. Thursday, May 26th Executive Committee, 2:00 p.m. Government Affairs Cmte., 2:30 p.m. Board Meeting, 3:30 p.m.

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 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 . . . . . . . . . . . Tom Taylor

HBA STAFF Executive Vice President . . . Teresa Osinski, CGP tosinski@kitsaphba.com Administrative Coordinator . . . . . . . . . . . TBD 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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Monday, May 30th HBA CLOSED

Support the HBA! This annual fundraiser is going directly to benefit the HBA operations. Show your support with a quality, new, item for auction and a reservation for dinner. This is a fun event for the HBA. Come as you are, or come as a pirate (same thing?). Contact the HBA today.

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


May 2011 Edition

About the time you think you’ve got it, Government is Justin considering another code Ingalls update or new regulation that impacts not only the building Kitsap Trident Homes industry, but also the 2011 President communities we live and work in and citizens as a whole. What might seem like a good idea with the right intentions on paper, most times will impact us in other ways. There are pros and cons to all of the following, and I’ll let you be the judge bas ed on your own feelings, but in a time when the industry and the economy are struggling, now doesn’t seem to be the time to keep coming up with more to impose. While the date had been pushed back a couple of times, the time is now for the new energy code to be in effect. These new requirements will dramatically impact the cost of new construction and remodeling projects. They include changes related to wi ndows, insulation and electrical to name a few. There will be required testing on ducting for heating systems and a blower door test for the structure. Don’t forget to take this into account when bidding on your next project or looking to update you own home. This was preceded by storm water code updates that also have had significant financial implications that fall back to property owners and develope rs. Over the past few months, the HBA has been in discussions with the Fire Chiefs and Water Providers with regards to fire flow. You may remember this topic from years past, and it seems to be coming back to the forefront again. While the main focus seems to be increasing the fire flow in the Urban Growth Areas, the current working proposal also includes increasing it in our Rural Areas for both new residential and new commercial projects. In addition to the economic impact to the developer, builder and owner, a large hurdle will be the lack of being able to provide the water. Our water purveyors have been installing infrastructure based on the current codes and regulations. While the available storage may not be as much of a problem for the providers, to increase the flow requirements would require bigger pipes to be i n the ground. We are currently attempting to work with several of the water districts and the Fire Departments to map out the UGA’s and available water to see what the real impacts could be. As a result we look forward to continue a positive working relationship with all of our local government agencies. To date we have met with two of our Mayors, all three County Commissioners and County DCD staff. As I mentioned earlier we have also had opportunities to meet with our fire chiefs, our fire commissioners and water purveyors. We were also fortunate to have a visit from State Attorney General, Rob McKenna this past month as well. We are very grateful to all of you to take the time to meet with us and discuss all the issues at hand. Since I am a glass full type of person I’d like to finish with a bright spot in our local economy. We had very well attended Builder ’s Breakfast with Poulsbo Mayor Becky Erickson at Tap Rock Grill this last month. She shared with us the current activity that’s happening in the city, which includes a new mixed use development that involves residential, commercial and assisted living, they have been in talks with Safeway about possibly opening a new store and reported an increa se in store rentals in the downtown core.

The HBA has been working hard on a variety of issues that affect our industry and while we’d like to think our word is enough, CGP sometimes it becomes essential for each of you to speak up as well. Executive Often times members that aren’t Vice President builders may not fully understand why they should care about a new code or rule the HBA is speaking for or against, but the simple answer is that it’s the economy. Most of our members are members because they have some involvement in the housing industry; either directly or indirectly. The direct relationship is easy to figure out, but the indirect ones may not be so obvious. For example, if you are the owner of a cabinet shop, why should you care that the fire officials in Kitsap County are pushing hard for increased fire flow? You should care because if that effort is successful, the price of housing is going to go up. When the price of housing goes up, the choices a potential new home buyer or builder can afford will become more limited. In other words, the amount of money they will have available to upgrade to a better cabinet line will shrink and so too that sale. If you’re a remodeler, why should you care about a fire flow change? How big a remodel would you like to do? If you exceed the 50% of value threshold, you now need to meet fire flow. That project just got smaller. Are you a realtor and figure you’ve got it tough already? If this push to increase fire flow is successful, the cost of housing will increase which will have a negative affect on the “move-up” market. Again, a signal against “moving up” will be sent and people will stay in their existing homes. They won’t list, they won’t sell, and they won’t move. In turn the impact of the shadow market (short sales and foreclosures) will be extended as their affect on local pricing continues to be borne out in appraisals of non-shadow market product. All of this being further impacted by the ongoing low appraisals in our county and the region. Without much effort, you can link this one example code change to every single business in Kitsap County. Whether a business is involved in the housing industry directly or not, changes like the proposed increase in fire flow affect the economy and therefore all businesses. There is nothing about this fire flow proposal that will improve Kitsap’s economy. There is nothing about this code that is going to solve an immediate life safety concern. Further, this county has the benefit of an excellent, highly trained, and well funded fire service. The HBA is thankful for that and has a history of supporting our local fire officials and their need of levies to fund their important services, as well as our ongoing cooperation on development codes for fire access, alternative housing materials, and smoke detectors. On this issue of a sweeping increase in fire flow requirements, however, we must disagree. It is very important that you contact the Board of County Commissioners and tell them you do not support any increase in fire flow, further change to the fire code, or a direct or indirect mandate for residential sprinklers. We have yet to fully measure the impact of the County’s Water As A Resource Policy, the County’s 2010 stormwater code, or the newly implemented 2009 Energy Code. Even when the market returns, the impact of this multiple layer affect of new regulations will only just be beginning to be realized. The HBA cares deeply about safe communities and safe homes. We have supported the need of smoke detectors and agree with the fire service that smoke detectors save lives. We build developments with wider roads, and multiple access points, and wide driveways to accommodate the requirements of the fire service. We also care deeply about providing housing to this community and its hard working citizens. We want to continue to be a part of building a better future for all of Kitsap. Help us send the message to the Board of County Commissioners that we want them to focus on the economy.

Teresa Osinski


May 2011 Edition

Government Affairs Committee Wayne R. Keffer, WRK Construction, Inc. 2011 Chair

It is spring, and summer is on the way. There is much to do at home and at work. It’s the same for the HBA. Your leaders have engaged many local political and government officials to promote our industry this year. Weekly we meet with decision makers on a variety of issues that either affect your business now, or could in the future. There are many issues churning that could hurt our industry and negatively effect affordability for homeowners. Issues such as new legislation that increases homebuilders risk to do business, land use regulations that push up the cost of development, proposed increases to fire flow regulations, changes to regulations related to Labor and Industries, and so forth. But the good news in all this is that the HBA is well perceived as a leader in Kitsap County. Not only have we l ead the way in green building, but with low impact development too. We have staff that attend important policy making meetings. We have volunteers that donated their time at the local level to engage and share their knowledge with elected officials and staff on the many boards and advisory panels. We have several members that hold elected office. I am proud of the members and their contributions that allow us to have a positive influence at the local and state level. Please look to the calendar and consider participating in the Builder Breakfast meetings. They are open to all members; it is a great place to learn the issues affecting our members and it is a good place to network and get to know other members in a casual setting. Take time to support your Association at our May 13, PIRATES OF THE HBA dinner and auction. This year ’s proceeds are going directly to the HBA to support our operating budget. We will also auction off dessert to support our annual Build A Better Christmas program; which helps the families who find themselves in the YWCA Alive Shelter at Christmastime. We need your help and I am asking that you consider a donation, sponsorship, and dinner reservations. Please call the HBA for the details. Lastly, if there are issue directly related to the building industries that hurt our members or threaten housing affordability, let us know so we can check it out and go to work for you.

SHIVER ME TIMBERS! Shiver me timbers! Don’t be a scallywag and miss the Pirates of the HBA dinner and auction. All ye Pirates are bein’ called and ye’ expected to show, ya’ see? Aye! There will be grog and plenty o’ ways to spend yo’pieces o’ eight and a gold doubloon or two, or three, or ...AYE! You be getting’ the meaning. Call the HBA today to donate, sponsor and reserve your seat. Aye! Or it will be Davey Jones’ Locker to you! Aye!

Lead Rules Enforced by Washington State Department of Commerce As of March 16, 2011, the Washington State Department of Commerce will be the enforcement agency for the Environmental Protection Agency’s Renovating, Repair, and Painting rules related to safe practices around lead paint. If you are a renovator that may disturb more than 6 square feet in a home built before 1978, you must have Lead Certification for your firm and for at least one employee on an affected job site. For more information on this, please visit the Washington State Department of Commerce website at www.commerce.wa.gov/lead for all the information. Do not get caught without this certification. The fines are very steep.

Energy Code Enforced by Kitsap County As of May 1, Kitsap County Department of Community Development will be enforcing the Washington State Energy Code. While the code went into effect in January, there has been some confusion about how to enforce it. Additionally, the Governor had originally asked for a delay until April. The State Building Code Council had not granted the April delay but had extended it for several months. The legislature too considered a legislative delay, but that was not successful as of the writing of this article. For now, be aware that all permits submitted to the County, and since January in the Cities, is required to meet the requirements of the 2009 Washington State Energy Code. If you have questions about the code, a good source of information is the Washington State University Energy Office. Their website is www.energy.wsu.edu.

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May 2011 Edition

Welcome New Members Eric Ellis — Ferrell Gas 1405 Lumsden Road Port Orchard, WA 98367-9179 (360) 373-2515 Email: ericellis@ferrellgas.com Sponsor: Ron Perkerewicz, Inspection & Permit Services

Thank You Renewing Members Over 25 Years Armstrong Homes of Bremerton (40) 20 Years to 25 Years Cedar Bay Homes Northwest Cascade Inc Stan’s Electric Wet Apple Media

10 Years to 14 Years Bay Ford Inc Four Aces Drywall Inc Paul Ogilvie Construction Robison Mechanical Inc Washington Federal WAVE Broadband

15 Years to 19 Years BJ Builders Central Highlands Inc

5 to 9 Years Costco Heritage Fireplace Shops

Hill Moving Services Inc Sentintel Construction & Consulting Inc Talbot Excavating Team 4 Engineering The Roof Doctor 2 to 4 Years JB Concrete Construction Servpro of Kitsap County

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.

Mark your Calendar for the annual Homebuilders Classic! When: July 8 Where: Rolling Hills Golf and Country Club Contact the HBA for your registration information and ways to sponsor this event! We have hole sponsorships, contest sponsorships, and cart sponsorships. Get a group of 4 together and reserve early for the best price! Your day will include, fun (rain or shine), golf, a cart for every two, and dinner!

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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

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. 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

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.

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Golf tournaments a popular fundraiser for local nonprofits

Gold Mountain photo courtesy ©Rob Perry Photography

tough in the past couple of years,” he said. He thinks golf tournaments are attractive because it brings together friends having a good time. “If you have a soft point in your heart for the cause hosting that tournament and if you’re a golfer, you’d want to be there, and it’s a fun event,” he said. One of the biggest fundraisers at Gold Mountain Golf is for Washington CLUB (which stands for Contractors, Legislators, Unions and Business). The Washington CLUB Charity Golf Classic has raised more than $750,000 in its 10 years for three charities: Holly Ridge Center in Bremerton, The Children’s Hospital in Seattle and the Diabetes Research Institute. The two-day event attracts 288 golfers to the two Gold Mountain courses, as well

as about 100 people for a pre-event the day prior. Participants come from all around the country, invited by CLUB members. The goal is to net $100,000 each year. “I think golf over the last 10-15 years has intertwined into the business community, and (a golf tournament) is a good business avenue because you can bring in employees and customers. You get solid face time with those people,” said Brian Remington with Golf & Corporate Solutions, who organizes 40 tournaments per year and has been overseeing the Washington CLUB Charity Golf Classic for about eight. He said for sponsors supporting the event, it’s money well-spent because people love to play golf, they know they’re supporting a worthy cause and it’s a casual atmosphere for networking.

“Maybe there’s a competitive aspect too because these guys come from the business world. Maybe the competitive nature sets golf tournaments apart from an event like an auction,” he said. In addition to receiving a boost from the CLUB event, Holly Ridge Center has been organizing its own charity tournament. The event, in 11th year, has been hosted at McCormick Woods for the past four years. The fundraiser nets about $15,000, which goes toward covering uncompensated care for children from birth to age 3. Executive Director Roxanne Bryson said the organization, which serves disabled children and adults, helped 830 kids last year and has $500,000 in uncompensated care per year. She said the majority of the golfers are not there for the game. “They’re there for our children in the community. They have fun golfing but some are terrible golfers,” she said with a laugh. Organizers even offer a prize for the worst team — all in good fun. While the money is important, Bryson said the event also helps raise awareness about the organization. “It’s trying to reach out to the community and the people that may not necessarily know about our services. Our organization is 47 years old and has changed a lot,” she said. “I think visibility is really important because we’re doing friendship development, which is very important for nonprofits.” Fundraiser, page 28

May 2011 Kitsap Peninsula Business Journal•KPBJ.com 23

By Rodika Tollefson For the past decade, the Kitsap Golf & Country Club has been getting all decked out with decorations once a year, with golfers showing up by the dozens dressed in pink. The private golf course, located in Bremerton, becomes the site of a big party complete with a golf tournament, bake sale and prizes. The golfers are there to have a good time — but they are also there for a purpose. The event, called Rally for the Cure, is part of the Susan G. Komen for the Cure, and funds raised from fees and sales go to fight breast cancer. “We put a lot of hype out for breast cancer. Everybody wants to help find a cure so they like to participate,” said Cherie Calahan, an ambassador for Rally for the Cure and a breast cancer survivor who has been organizing the event for about four years and has helped previously. The tournament was originally designed as a ladies’ night out but starting last year, it was opened up for men and children. The 110 golfers who participated last year raised more than $5,000 including $500 from the bake sale alone. Part of the purpose, Calahan said, is also to raise awareness about breast cancer as well as encourage their own members and friends to get screened. Golf tournaments have been popular around the Kitsap Peninsula as fundraisers and awareness builders for a variety of nonprofit organizations, from Kitsap Mental Health and Kitsap Cancer Services to several chambers of commerce. “Golfers take any excuse to be out all day,” said Adele Heinrich, executive director for the Poulsbo Chamber of Commerce, which hosts its tournament at Port Ludlow Resort as one of its two major fundraisers every year (the other is a community guide). The all-day event, which attracts 14 to 18 four-person teams, includes lunch and dinner. Chamber members support the affair by sponsoring holes as well as inviting their business associates and friends to be on a team. “It’s a time for members to get together, relax and invite their friends, and they know it’s a time to support the chamber because the membership fees can be used for other purposes,” Heinrich said. Scott Alexander, director of golf at Gold Mountain Golf Club in Bremerton, said his facility hosts more than 100 corporate and fundraising events every year. Although the numbers have been down the past couple of years, most likely because of the economy, he said they’re picking back up. “For fundraisers to work, you need sponsors and people to play and that’s been


COVER

24 Kitsap Peninsula Business Journal•KPBJ.com May 2011

from page 1 will be the first municipal course and only the second public course to host this six-day event. To pay for the cost of hosting it, the golf club has to raise $250,000, and planning efforts started as soon as the event was awarded more than two years ago and kicked into high gear last year. “We’ve knocked on many doors and engaged a lot of people,” Alexander said. This is the second time a major golf event has put the spotlight on the facility. In 2006, Gold Mountain hosted the U.S. Amateur, the oldest golf championship in the country and one that has the most coveted amateur titles. Alexander said they’ve been vying for that honor of hosting it for about 10 years — but once they applied to host the U.S. Junior Amateur, it was awarded to Gold Mountain the next year. He said part of the reason is because th e USGA was impressed with the community involvement during the U.S. Amateur, including support from local businesses and volunteers. “To host two USGA national championships in a five-year period, even for the best courses in the country is very rare,” he said. Gold Mountain Golf Club has consistently ranked at the top in the state

and in the nation. Its awards include a 4.5 star rating (highest in Washington) and best in the state by Golf Digest, Best Public Course in Washington by Golfweek Magazine, as well as second best value in the country behind Bethpage Black (Long Island, NY) by both Golf Digest and ESPN. One of only three 36-hole golf ranges in the state, Gold Mountain opened its Cascade Course in 1969 with nine holes, adding nine more in ‘71. The Olympic Course opened in 1996 with 18 more holes and immediately got accolades: It was voted second the best new public course in the United States the following year. The city added the Olympic Course at the urging of Alexander, who saw a need for more space. He backed it with hard data, too: For a year, staff kept track of how many times they’ve turned away rounds because they were booked. “It’s been a great investment for the city,” he said. “It’s helped bring tourism to our area.” The national events are making that investment even more solid. Alexander said avid golfers seek out courses where USGA hosts major events. “Many educated golfers travel around and have the desire to play the best courses in the country — things like this set you apart and put you in front of those avid golfers,” he said.

Gold Mountain photo courtesy ©Rob Perry Photography

Already, golf is a major boost to the Kitsap economy. As one example, Gold Mountain has partnered with McCormick Woods Golf, Trophy Lake Golf & Casting and Silverdale Beach Hotel to offer a “stay and play” package. Alexander said the program has helped book about 1,000 hotel nights and brought in $375,000 in program fees alone every year — and those numbers doesn’t include the many people who don’t know about the package and do the same thing independently. A major reason for Gold Mountain Golf Club’s high rankings is the topography, “the creative design the architects came up with to challenge the best players while making it playable for beginners, Alexander said, because “it’s a challenge to make it good for both types of players.” Being part of the design process was a highlight of his career — as is hosting two major championships. “About 95 percent of people in my business don’t get to do either golf course design or host a national championship,” he said. But as exciting as the championships and other events (including NCAA regionals) are, Alexander said what he likes the best about the job is providing the best experience for the everyday golfers, making many new friends and being involved in the community. “When you’re doing a national championship… everything has to be top notch and there’s no reason not to carry that over to everyday play,” he said. Alexander has been playing golf since he was 4 years old, growing up in a golfing family. He played golf successfully through high school and college but decided not to take the professional route with the PGA. Instead, he wanted to become a golf pro but was discouraged by many people, who told him golf is a tough business with long hours. “I tried the insurance business for a while and realized the hours didn’t bother me but I wanted to do something I loved,” he said. “If it’s going to be long hours, it

might as well be doing something you love.” About 26 years ago, he came to Gold Mountain Golf Club as the head golf professional, taking over the ownership of the pro shop and the management of the city-owned course. He was in his late 20s at the time. A few years later, he also took over ownership of the restaurant, Tucker’s. “With my personality and thinking outside the box, owning my own business has been a good fit,” he said. Daryl Matheny came to Gold Mountain more than 20 years ago as an employee, and soon became a partner in the business. An Olympic High School grad who grew up in Bremerton, Matheny started out in the sport as a teen thanks to his father and has played competitively in the state’s junior association. Now the head pro, he said having his office on the golf range has great perks. He loves being able to step outside and hitting a few puts. Not that he has much time — just organizing national championships has entailed days that start as early as 4:30 a.m. and go on until late evening. Seeing the final product in 2006, however, has brought in a lot of satisfaction, Matheny said — and now that they proved they could give the visitors the “wow factor,” they’re ready for the next round. “We got so much satisfaction not only for the facility but for the city, the volunteers and the community, we really wanted to do it again,” he said. The two business partners said the business has both allowed them to continue being immersed in their passion for golf as well as an opportunity to help many others enjoy the game. Alexander, who doesn’t get a chance to play except once every two to three weeks, said he doesn’t miss the game as much since he played a lot when he was younger, not to mention he loves the new challenges he has. “I still love the game but what challenges me the most is running the business successfully,” he said. “I love creating new ways for people to come and play.”


Fly fishing, golf and poker — and other ‘out of the box’ adventures By Rodika Tollefson When David and Valerie Wagner first visited Mason County and Hood Canal three or four years ago, the couple fell in love with the area. Within two days, they had decided to buy a business headquartered in Union, Hood Canal Adventures, and move to Puget Sound. Because they know first-hand that many visitors love the Kitsap and Olympic peninsulas so much, they come back repeatedly, the Wagners have been looking for ways to make those visits even more enticing. Since buying the business — which offers kayak and boat rentals plus a variety of packages and tours — the pair have trying to offer new “out of the box” adventure ideas. “There’s a kid inside of everybody but you have to pull it out sometimes. We allow people to have fun, and we pull the kid out of them,” David Wagner said.

The packages that Hood Canal Adventures offers range from sunset tours complete with dinner, to fly fishing tours and guided hiking tours. One new offering is a package just for the men, called “Fly Fishing, Golf & Poker.” It’s a weekend that includes a guide taking the guys to a “secrete fishing spot,” plus a trip to the casino for some Texas Hold ‘Em, and a round of golf at Alderbrook Golf Course. “Flying fishing, golf and poker are all things guys like to do and it’s something we thought it would be cool to have,” Wagner said. “We’re trying to find ways all the time to keep it fresh and do something different.” Last summer, Hood Canal Adventure did something else very different. The Wagners were the main organizers of the Explore Hood Canal Geocache Bash, an event that was sponsored jointly by the chamber of commerce from Shelton and North Mason. The high-tech treasure hunt attracted

families to Mason County from all over the region, and this year it’s being expanded to include hiking and more advanced routes for more experienced geocachers. “They want to be challenged and think about what they’re doing,” Wagner said. The Geocache Bash will be in October and also include a team event, with the top team winning not only a trophy but also a kayaking tour. Hood Canal Adventures is not new to the idea of geocaching. The Wagners have been offering private events for this popular recreational pastime, and the business has attracted everyone from Microsoft employees doing a retreat and team building to families celebrating birthdays. They’ve also mixed it up, keeping in tune with the “out of the box” goal: They’ve organized events such as geocaching poker runs and a St. Patrick’s Day-themed geocache event on a golf course.

Golf Course Round-Up

Canterwood Golf & Country Club 12606 54th Avenue NW, Gig Harbor (253) 851-1845 Head Golf Pro: Mike Drake Canterwood Golf & Country Club is a private 18-hole facility. Course par is 72, length is 7,185 and the course is rated 76.0/144. Call Canterwood for membership details. Canterwood offers a driving range, putting green, chipping area and has been rated by Golf Digest to be the sixth best golf course in Washington State. Gig Harbor Golf and Country Club 6909 Artondale Dr NW, Gig Harbor (253) 851-2378

General Manager and Course Pro: Steve Stensland Gig Harbor Golf and Country Club is a private nine-hole facility. It is 5,420 yards long and the course par is 70 and is rated 66.3/114 for men and 67.6/118 for women. The course is scenic, hilly and has incredible views of Mt. Rainier. Memberships are available for $192 per month for 9 months and then 3 months are free; call Gig Harbor Golf and Country Club for details. They offer a driving range, putting green and a chipping area. A new renovated event space is now available to members and nonmembers. Gold Mountain Golf Complex 7263 West Belfair Valley Road www.goldmt.com (360) 415-5432

Have you heard the buzz about Gold Mountain Golf Course? • Golf Digest • ESPN

Round-up, page 27

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Golf Director: Scott Alexander Head Pro: Daryl Maphney Gold Mountain offers two 18-hole courses, Olympic and Cascade. Par for the Olympic course is 72. The 7,035-yard course is rated 74.1/135, 71.3/129, 69.1/124 for men and 74.7/132 and 70.2/122 for women. Olympics’ weekday green fees are $42, $36 for Seniors and $22 for Juniors. Olympics’ Friday fees are $46, weekend and holiday fees are $60 for everyone. Twilight fees are $25 for weekday and $27 for weekend. Par for the Cascade course is 71. Cascade is 6,707 yards long and is rated 72.2/125, 70.5/122, 69.0/118 for men and 75.0/127 and 70.2/119 for women. Cascade’s weekday fees are $33, $28 for

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May 2011 Kitsap Peninsula Business Journal•KPBJ.com 25

Alderbrook Golf & Yacht Club 300 Country Club Drive, Union (360) 898-2560 Course Pro: Justin Gravatt Alderbrook is an 18-hole, par 72 course. It is 6,326 yards long and is assigned a course/slope rating of 70.5/115. Weekday green fees are $40 and $18 for Juniors. The weekend (Friday through Sunday) and holiday fee is $55 except for Juniors who pay $18. A $25 twilight rate is in effect after 3 p.m. on Monday through Thursday; and $35 on Friday through Sunday. Club rentals are $15 for 18 holes or $10 for nine holes. Hand carts cost $5 for 18 holes, $3 for 9 and power carts are $14 per rider. Alderbrook offers a driving range, putting green and chipping area. If you are new to the sport or want to buff up your short-iron game, a 45-minute individual lesson costs $40 or five for $160. Group instructions available for 3 – 6 people for one hour at $20 per person. Alderbrook offers a snack bar and restaurant, Alderbrook Golf and Yacht Club Restaurant; open Monday through Friday from 11 a.m. to 7 p.m. and 11 a.m. to 9 p.m. during the weekend. Alderbrook is available for tournaments. Call for more information.

“We want to create things people can do when they bring their family here for vacations,” Wagner said. Kayaking is among the popular activities supported by the business, especially since Hood Canal is a perfect spot for it. Many regular customers are seniors, and Wagner believes there’s nothing easier than kayaking. “Nowadays, I think a lot of seniors have energy and they want to be active and be outdoors, and we offer an easy platform for them to do it,” he said. Hood Canal Adventures uses sturdy kayaks that are not prone to tipping over, and staff provides complete assistance with launch and disembarking, along with a Kayaking 101 session for beginners. “The docks are flat and (the kayakers) get pushed off and pulled off, and it’s really easy to get in and out of the kayaks,” Wagner said. One of his regulars, a woman in her 80s, has even continued kayaking after hipreplacement surgery. And those who are not comfortable paddling by themselves or are frail can be paired up with someone more experienced or strong in a double kayak. “It’s not a lot of physical work,” Wagner said. Some people show up in groups, renting kayaks and going on water outings together. “They are in the water with their friends, and the views (on Hood Canal) are absolutely gorgeous,” Wagner said. “It’s just spectacular.” Those looking for more personalized service can schedule a kayaking tour, which includes a kayak lesson and a guided trip, as well as snacks or lunch and other extras (even fishing), depending on the budget. Currently, the tours are around Hoodsport and Union but Wagner said they can be arranged anywhere on the Kitsap Peninsula. “We’re open to taking our fun anywhere,” he said, “as long as we have water.” For more information, see www.hoodcanaladventures.com.


Peninsula Outfitters caters to fly fishing needs, from A to Z

26 Kitsap Peninsula Business Journal•KPBJ.com May 2011

By Rodika Tollefson Bill Drewry started fly fishing when he was a little boy, growing up in a family that traveled around the world to fish. The love for the sport — and art — of fly fishing has carried long into adulthood, so when a business catering to fly fishing enthusiasts came up for sale, Drewry didn’t have to think twice. “It was a passion and a hobby that I turned into a business,” said Drewry, who bought Poulsbo-based Peninsula Outfitters five years ago and has since been expanding

it. Going from a hobbyist to a business owner catering to hobbyists is not always an easy transition, but Drewry had a nice advantage. While living in California, he owned a wine business for 12 years. “I feel fortunate to have the retail background. Unless you have a business background, it can be tough,” he said. “I like niche businesses because we can focus on what we know and can offer a better customer experience.” Drewry said he loves retail but he also

has another advantage — he can balance his work in the shop with being outdoors. He is one of the guides for the guided fishing Peninsula Outfitters offers, and is also a boat captain who takes customers out on his boat (boating is another longtime passion of his). Since Drewry bought the business, he has about doubled the retail offerings and added more classes. In April, he took another step to growing the business: He expanded the space, doubling it to a total of about 1,000 square feet. The expansion will allow him to add more merchandise as well as have some breathing room for the flytying classes hosted inside the shop. “From the moment I bought the shop, I knew I needed more space. It was a matter

Drewry said. Drewry employs two other people at the shop as well as instructors and guides. The classes offered include, among others, an introduction to fly fishing hosted at Trophy Lake Golf & Casting, and an introduction to local beach fishing. The guiding trips range from fishing on local lakes for trophy rainbow trout, to trips on Drewry’s 18-foot Boston Whaler for coastal cutthroat trout.

of how to make it happen,” he said. With that complete, his next effort will fall on the company’s website. The site, at www.peninsulaoutfitters.com, already has extensive information on classes and products, and online orders can be shipped all over the world. But Drewry sees more potential, including incorporating social media. “We want to reach out to a broader audience,” he said. The store’s selection has “everything you need for fishing,” from high-end rods (including the Sage brand manufactured on Bainbridge Island) and various fishing gear to apparel. The shop also caters to the do-ityourselfers and is stocked up with a variety of fly-tying supplies. Fly-tying classes are scheduled regularly, as are more advanced classes for fishermen who want to make their own custom rods. “We want to cover it all, from the beginner to those customers who travel all over the world; we want to outfit them,”

A couple of times a year, Drewry also takes a small group to Montana. When Drewry captains his boat with customers, the trips are enjoyable for him but far from relaxing. “It’s a lot of work. You’re responsible for people’s fun and safety and there’s a lot of pressure to make it successful,” he said. And although he tries to schedule these outings as often as possible, he said he never gets tired of boating and fishing — he makes sure he does burn out on the job by taking time off for himself or with the family (and is likely to be out on the water, fishing or boating, during those “down times.”) Fly fishing, he said, is one of those hobbies that a person can have for a lifetime, and there’s much more to it than meets the eye. “There’s an art form to fly fishing beyond catching fish,” Drewry said. “…It can also be very competitive — there’s a physical and mental aspect to it.”


“Unleash the Beast” Returns to Port Gamble By Rodika Tollefson Among adventure sports enthusiasts, the Kitsap Peninsula is no longer a bestkept secret. The area has become a destination not only for individuals looking for active recreation but also for organizers of outdoor events such as bike and kayak races. It’s easy to understand the attraction, considering the scenery as well as the 200 -plus miles of shorelines and numerous parks and trails. But for John Kuntz, there’s much more potential. He would like to see the Kitsap Peninsula become a hotspot for adventure sports athletes, which would

boost tourism, and consequently, local businesses. Kuntz, who owns Olympic Outdoor Center in Port Gamble, has been doing his part to see that dream come to life. The business, which is 25 years old this ye ar, has been organizing events such as the popular Paddle Kitsap, in addition to offering various individual adventures including classes and tours. One of those events is Unleash the Beast, which is returning to Port Gamble for its second year. Scheduled for May 7 and 8, this NW Adventure Sports Festival is geared to attract paddlers, mountain bikers, runners and

ROUND-UP

lesson costs $35. For members and their guests, the restaurant offers lunch daily, dinner on Wednesday and Friday, and breakfast on weekends.

from page 25 Seniors and $12 for Juniors, Friday - $36 for everyone. On weekends and holidays Cascade costs $40 and twilight rates are $23 during weekdays and $26 for weekends. Clubs rent for $25. Hand carts rent for $4 and power carts for $16 per person. The facility offers a putting green, a chipping area and a partially covered driving range. Instruction is available, call for details. Tuckers Restaurant, 415-6895, is open to the public Wednesday through Friday for dinner and every day for breakfast and lunch. Gold Mountain has been chosen to host the 2011 U.S. Junior Amateur Tournament and Golf Digest has rated the Olympic course to be the second best value in the United States.

Kitsap Golf & Country Club 3885 NW Golf Club Hill Road, Bremerton (360) 377-0166 Course Pro: Al Patterson Kitsap Golf & Country Club is a private 18-hole, par 71 course. It is 6,329 yards long and has a rating of 70.2/125, 69.4/123 and 71.6/121. Guests pay $45 on weekdays and $55 on weekends and holidays. Club rentals are not available. Handcarts are complimentary and power carts cost $28 for two persons. A driving range, putting green and chipping area are available. A 30-minute

Madrona Links 3604 22nd Avenue NW, Gig Harbor (253) 851-5193 Head Pro: Pat Bean Madrona Links offers 18 holes with a par of 71. Course length is 5,602 and rated 67.6/113, 66.7/111 and 64.8/106. Weekday rates are $27 for 18 holes, $20 for nine holes. Weekend rates $30 for 18 holes and $22 for nine holes. Seniors pay $23 for 18 holes and $17 for nine holes Monday through Friday. The weekend rates apply on Friday, Saturday and Sunday. Juniors pay $18 for 18 holes and $13 for nine and twilight rates are $22, super twilight are $17 all week. Clubs rent for $15, handcarts for $5.00 and power carts for $13.50 per person. Round-up, page 28

Wells said although the shop doesn’t cater to runners and hikers, Port Gamble has great trails within the 3,0 00-acre property owned by Pope Resources near the heart of the town, so adding the running segment was natural. “We’re outside of our business face (with hiking) but our expertise and passion definitely extends to other outdoor activities,” Wells said. Although Kitsap is popular for kayaking and other water sports, Wells said not many people are aware of the accessibility to mountain biking on the Kitsap Pen insula, which is why an event like Unleash the Beast is designed to attract attention to the area’s potential. Kunz sees the event evolving with time to a major regional attraction, and his goal is to add other elements, such as road bicycling, in the future. He hopes other businesses will be inspired to host their own events. “I think Kitsap County is positioned ideally for these types of activities, espec ially with the Olympic Peninsula on one side and a major metropolitan area on the other side,” Kunz said. “ We’re hoping other businesses will create more events of this nature.” For more information about Olympic Outdoor Center and NW Adventure Sports Festival, visit www.olympicoutdoorcenter.com and www.unleashthebeastnw.com.

May 2011 Kitsap Peninsula Business Journal•KPBJ.com 27

Horseshoe Lake Golf Course 1250 SW Club House Ct, Port Orchard (253) 857-3326 Horseshoe Lake Golf Course is an 18hole, par 71 course. Its length is 6,120 yards and it is rated 69.1/116. Peek weekday green fees are $36, which includes cart, $29 for Seniors and $12 for Juniors. Twilight rates after 12 p.m. during the weekday is $29 and 12 for Juniors and includes a cart and all you can play. The weekend and holiday rate before 8 a.m. is $39; from 8 a.m. — 12 p.m. the rate is $44, twilight weekend after 12 p.m. are $32 for everyone which includes a cart and all you can play. Club rentals are $20. Hand carts are free. Horseshoe Lake offers a driving range, putting green and chipping area.

Lakeland Village Golf Course Old Ranch Road, Allyn (360) 275-6100 Course Pro: Randy Jensen Lakeland offers three 9-hole courses, Generation I, II and III. Generation I is a par 35, 2,584-yard course with a rating of 32.5/110. Generation II is a par 36, 3,140yard course with a rating of 35.0/126. Generation III is a par 36, 3,331-yard course with a rating of 35.1/126. Green fees are as follows: Friday $32, Weekend - $36 to play any combination of two 9-hole courses; Monday and Thursday - $28 for any combination of two 9-hole courses. Twilight rates of $22 are available everyday. Senior rates on Monday and Thursday are $22. On Tuesdays and Wednesdays the fee is $22 after 12 p.m. Lakeland Village also offers memberships. The annual fee for a single member is $1,700, and $2,700 for a family. Clubs rent for $10. Handcart rentals are $5 for 18 holes and $3 for nine holes, and power carts cost $32 for 18 holes and $20 for nine holes. Lakeland Village has two driving ranges, a putting green and a chipping area. 30minute individual lessons are available, call for rates. Lakeland Village offers snack bar fare.

paddleboarders — both those with experience and those just looking to get started. Kuntz said in addition to bringing tourism to the area, he wants to make Port Gamble in particular a destination for adventure sports. “We also want to get people active in outdoor sports and away from TVs and RVs,” said Kuntz, who is on the boards of Kitsap Peninsula Visitors and Convention Bureau and the North Kitsap Trails Association. Last year, the inaugural festiv al attracted about 200 athletes, plus another 800 or so people. In addition to races, the festival brings in several dozen vendors who demonstrate their newest products, so participants can try out equipment (sometimes for a small fee). “We try to do demos at the shop for free every day, but at the festival they can get into a lot of boats in a short amount of time,” said store manager Forrest Wells. The fes tival has been expanded this year to include a triathlon — paddling, mountain biking and running — in addition to the races also offered last year, for mountain bikers and kayakers. Admission is free this year for the general public, and the second day of the festival is especially targeting families.


ROUND-UP from page 27 Madrona offers a driving range, putting green and chipping area. Madrona Links Restaurant and Lounge is open for breakfast, lunch and dinner. From 6 – 8 a.m., Monday through Friday, Madrona Links offers a special for $24 which includes breakfast and golf.

28 Kitsap Peninsula Business Journal•KPBJ.com May 2011

McCormick Woods 5155 McCormick Woods Dr. SW Port Orchard (360) 895-0130 www.mccormickwoods.com Course Pro: Jeff Mehlert McCormick Woods is an 18-hole, par 72 course. The course is 7,040 yards long and is rated 74.3/134, 73.2/131, 70.7/124 for the men and for the ladies 74.0/134 and 71.6/127. Weekday fees are $45, $35 for Seniors and Juniors. Clubs rent for $25. Three wheel carts rent for $8 and power carts for $15 per rider. McCormick offers a driving range, putting green and chipping area. A driving range token is $5 for 35 balls. A 50-minute individual lesson costs $55. The Club House at McCormick Woods is open weekdays from 11 a.m. to 8:30 p.m. and serves lunch and dinner. Weekend hours are 11:00 a.m. to 10:00 p.m. A nonbuffet Sunday breakfast from 9 a.m. to 1 p.m. is available. The Club House can be reached at 895-0142. Meadowmeer Golf and Country Club 8530 Renny Lane NE Bainbridge Island (206) 842-2218 Course Pro: Ted Wurtz Meadowmeer is a nine-hole course. Par is 71, course length is 5,596 yards, and it is rated 67.7/117. Weekday rates are $26 for 18 holes or $21 for 9. Twilight weekday rates are $15, twilight weekend rates are $20, and both include unlimited golf for everyone. Seniors, Juniors and Military pay $22 for 18 holes or $17 for nine. Weekend/holiday rates apply to everyone: $31 for 18 holes or $25 for nine holes. Members only till noon on weekends and holidays. Clubs rentals are $17 for 18 holes or $13 for nine holes. Hand carts cost $5.50 for 18 holes or $3.50 for nine, and power carts cost $28 for 18 holes or $18 for nine. Meadowmeer offers a putting green and a chipping area but no driving range. A 30-

minute individual lesson costs $40. Meadowmeer has a snack bar with grill and offers beer and wine. Northwest Golf Range & Scott Alexander Pro Shop 368 NE Waaga Way, Bremerton (360) 692-6828 Teaching Professional: Chris Keough Northwest Golf is a driving range and an 18-hole putting course. A jumbo bucket sells for $10; large bucket sells for $8; a medium for $7 and a small for $5. For patrons 15-years-old and younger the cost is $5 per medium bucket. Irons are available at no cost; woods rent for $2 each with a $2 per club deposit. General green fees are $6, patrons 12 years and younger pay $4, and a group of 15 or more pay $4 for adults and $3 for children under 12. A 60-minute individual lesson costs $50. Call for more lesson rate information and specials. Northwest Golf has batting cages for additional recreational enjoyment. Rolling Hills Golf Course 2485 NE McWilliams Road Bremerton (360) 479-1212 Course Pro: Tedd Hudanich Assistant Pro: Charles Welter Rolling Hills offers 18-hole of play. Course par is 70, length is 5,936 yards, and its rating for men is 68.7/120 and for women, 71.0/120. Weekday fees are $28, and weekends are $30. Seniors, Juniors and Military pay $20. Clubs rent for $12. Hand carts rent for $4 and power carts for $30. Twilight rates are $20 for weekdays, $22 for weekends and power carts are $18. Discount golf packages are available. Call for more information. Rolling Hills offers a driving range, putting green and chipping area. A 60minute individual lesson at Rolling Hills costs $40 and a 30-minute less costs $20. A group of four to six can receive six lessons for $80 - $90 per person. Putter’s Restaurant and Lounge (377-7077) serves breakfast, lunch and dinner and also offers banquet services. Trophy Lake Golf & Casting 3900 SW Lake Flora Road, Port Orchard (360) 874-8337 General Manager: Lance Fong Course Pro: John Hildebreand Trophy Lake offers an 18-hole course. Course par is 72, length is 6,162 yards, and

Coming Next Issue...

its rating is 69.7/129. Green fees change incrementally with the seasons. Green fees for this year’s summer peak season, beginning June 1, will range from $32 to $84 depending on time and day of week. Power carts are available. Call for more rate information. Clubs rent for $50. The facility offers a driving range, two putting greens and a chipping area. Instruction is available. The Dry Fly Café offers breakfast and lunch Monday through Saturday from 7 to 11 a.m.; Sunday from 7 a.m. until 1 p.m. and lunch Monday through Sunday from 11 a.m. to 6 p.m. On Thursday and Friday, dinner is offered from 4 to 8 p.m. Village Greens Golf Course 2298 Fircrest Drive SE, Port Orchard (360) 871-1222 Supervisor: Dori Leckner Village Greens offers 18 holes of play. Par is 58, course length is 3,255 yards, and its rating is 57.1/81. Green fees are the same everyday: $16.50 for adults. Seniors and Military can play all day for $13.19; Juniors can play all day for $10.99. Hand carts rent for $3. They offer a driving range, putting green and chipping area. Village Greens offers snack machines. White Horse Golf Club 22795 Three Lions Pl NE, Kingston (360) 297-4468 Course Pro: Bruce Christy Assistant Pro: Patrick Ackerman White Horse Golf Club offers 18 holes with a par of 72, course length is 7,093 yards, and is rated 75.0/146. Weekday, Monday through Thursday rates are $35 for 18 holes and $22 for 9. Seniors weekday only rates are $24 and the Junior rates is $10 after 12 p.m. seven days a week. Weekend rates, Friday through Sunday and holidays, is $49 for 18 holes and $25 for 9. Twilight rates after 3:00 p.m. are $22 for weekday and $25 for weekends. Active Duty Military rates are $29 for weekday and $39 for weekends. White Horse also offers a Replay rate of $20 for weekday and $25 for weekends. Power golf carts are available at $15 per person for 18 holes and $9 per person for 9 holes. Push carts are $6 for 18 holes and $4 for 9 holes. White Horse also offers a grass driving range, two putting greens, a chipping area with sand traps and bunkers. A Players Card can be purchased which offers the golfer discounts and lessons are available, call for more information.

Wing Point Golf & Country Club 811 Cherry NW, Bainbridge Island (206) 842-7933 General Manager: Bob Hollister Course Pro: Jeff D’Amico Assistant Pro: Katja Trygg Wing Point Golf & Country Club is a private 18-hole facility. Course par is 71, length is 6,017 and the course is rated 69.7/128. For 18 holes, guests of members pay $45 on weekdays and $50 on weekends/holidays; $25 for nine holes during the week, and $30 on weekends/holidays. Memberships are available, call Wing Point for details. Clubs rent for $20. Handcarts are free and power carts go for $30 for 18 holes or $15 for 9. Wing Point offers a driving range, a putting green, a chipping area, pool, and tennis courts. Instruction is available, contact the pro shop for details. The restaurant is available to members and their guests. Several other courses are within a short driving distance of Kitsap County and Gig Harbor. These include Port Ludlow and Chevy Chase Golf and Country Club in Jefferson County and Bayshore, near Shelton, in Mason County. You are invited to call them directly for information on greens fees and tee times.

FUNDRAISER from page 23 Some of the golfers who like to support charity events go to several of them every year. Still, since there are so many of these fundraisers, organizers have to find ways to keep them enticing. Jinnie Hanson, director of marketing and communications for the Boys & Girls Club of South Puget Sound, said having a well-run event is one of the keys to making it attractive. The Boys & Girls Club has been a coorganizer and beneficiary for the past seven years of the Donald B. Murphy Memorial Golf Tournament, an event that has been launched 11 years ago by Donald B. Murphy Contractors, Inc., raising between $26,000 and $40,000 a year in 2009 and 2010 alone. (The tournament has been hosted at Trophy Lake Golf in past years, but a venue for 2011 was not selected at press time.) “Golf is a great sport and a lot of people can have a good time,” Hanson said. “But there’s a lot of tournaments out there that compete for their time, so it’s very important to have a well-organized event.”

Real Estate

Deadline to reserve advertising space

An overview of commercial and residential activity

May 16th

Restaurants on the Peninsula

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Apple unveils iPhone, iPad subscription policy 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.

Boxlight announces new audio solution Boxlight has released a simple, all in one audio solution, which it has dubbed the SoundLite. The unit was developed to create room filling sound in environments where projection is being utilized and the presenter requires a complete audio-visual solution. It provides ample sound for small to medium size rooms and features two 2.75” high performance speakers and a 10-watt amp. The unit measures 10” wide and is compatible with any projector featuring variable audio. The speaker clamps easily onto existing projector mount extensions and ships with various bracket sizes to secure installation. A “Y” cable is included to share power between the projector and SoundLite, eliminating the need for multiple outlets. Alternatively it can be setup on a table top or rolling cart to be used in multiple rooms. “Sound is an important element in presentation and learning environments. After the launch of our interactive projectors, introducing an audio solution was a natural next step,” said Jeremy Peterson Boxlight product manager. “It is an affordable and simple audio solution making it desirable for customers needing it all on a budget.”

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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 ebook 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.

Eagle Harbor Holdings files Amicus Brief in Supreme Court Eagle Harbor Holdings (EHH), LLC announced that the company’s engineering and legal staff filed an amicus (or “friend of the court”) brief in the matter of Microsoft Corporation vs. i4i Limited Partnership. The question before the Court is whether the standard of proof required to invalidate a patent should be lowered dramatically. Presently, to invalidate a patent, it takes “clear and convincing” evidence. This standard holds large tech companies to a higher degree of ethics because it is hard to prove a patent is invalid. Microsoft is urging the Supreme Court to change that long-established standard to a mere “preponderance” of the evidence, meaning that if the scales are balanced 50-50 for “valid vs. invalid”, proving patent invalidity takes only an additional feather’s weight of evidence to tip the scales in favor of the accused willful infringer, i.e. the large tech company. This would make it comparatively easy for companies like Microsoft to annihilate the hard work and innovation of the small inventor.patent infringement by the likes of Microsoft and other mega-corporations.” View the EHH amicus brief at www.ehhllc.com/ehh/downloads/ab.pdf.

May 2011 Kitsap Peninsula Business Journal•KPBJ.com 29

“Telebyte Northwest has been our internet provider for nearly 10 years. As in most businesses, email is critical. In our business, our email has to go through a management system before we receive it. Occasionally, we have issues. We can call Telebyte and they will preview to find the problem. Many times they have contacted the management system to help solve the problem.

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. 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,


Churchmouse is an oasis for the knitting crowd

30 Kitsap Peninsula Business Journal•KPBJ.com May 2011

Kit Hutchin and John Koval are Bainbridge Island Chamber’s Business Couple of the Year By Kevin Dwyer Special to the Business Journal Kit Hutchin started knitting when she was seven years old. But it took her nearly 20 years job-hopping in various professions to figure out what she was meant to do. Hutchin, co-owner of Churchmouse Yarns & Teas on Bainbridge Island along with husband John Koval, tried her hand at catering, bookkeeping and advertising. Nothing stuck until a friend suggested she consider opening up a yarn store in 1999. She had taught others to knit and had even formed a knitting group at a church on the island. Even so, she was reluctant to take the plunge. “I didn’t know how (to run a retail store); I didn’t have any experience; I didn’t have much capital,” she recalled. At the urging of her husband, she took a week to mull it over. “I allowed myself to think I could,” she said, “instead of thinking I couldn’t.” Bainbridge Island has been the beneficiary of that decision ever since. Churchmouse — now in its 11th year — has become an island destination, attracting throngs of local shoppers and knitters from afar who enjoy the store’s cozy atmosphere, on-going classes and workshops, friendly staff, tasty tea, and beautiful yarns. In just over a decade’s time, Hutchin and Koval have built an extraordinary business in their little alcove shop on Madrone Lane that is known by knitters across the continent. For their ongoing business success and acumen, and their ever-present support of Downtown Winslow, the Chamber of Commerce has named them its 2011 Business Couple of the Year. Hutchin and Koval, who have been married for 31 years, will be feted at a special Business Couple of the Year Banquet Luncheon on Wednesday May 18 at 11:30 a.m. at Wing Point Golf and Country Club. Cost is $30 per person. The public is invited. They will also be the Grand Marshals at the Chamber-sponsored Grand Old Fourth of July Parade and Community Celebration. “It’s an honor and privilege to be recognized,” said Koval, “but we want to

accept this award not only for ourselves but for the other hard-working merchants in Downtown Winslow.” Churchmouse now has 15 full and parttime employees, all but one an Islander, and has seen sales increase almost every year since its inception. “Our staff is the real key to our popularity,” said Hutchin. Indeed, Google the store’s name or go on “Yelp” and you will see some very flattering reviews of the Churchmouse customer experience — visitors are treated kindly and enthusiastically by people who are passionate about yarn and tea. Some fans are extreme in their support, especially in light of the current construction outside the doors on Winslow Way. “We would climb over barricades to get to this store,” one customer told Koval. “We’ve been able to have this type of shop because we’re on Bainbridge,” said Hutchin. “We’re proud to invite people to the Island. When visitors come, they feel like they’ve been somewhere. (Downtown Winslow) is not a commercial strip ... When you’re here, it’s unlike anywhere else.” Hutchin credits the support of fellow downtown shopkeepers in creating this congenial atmosphere for locals and visitors. “Many retailers here have been in business fifteen, twenty, thirty years. They’ve set an inspiring example for us.” The name — Churchmouse — came to Hutchin almost immediately. “We wanted something that sounded traditional and

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English, and was easy to remember,” she said. Hutchin designed the décor herself with advice from friends, using English pine fixtures and table lamps. “We really wanted the store to have a residential feel.” She added teas so that non-knitters who might be intimidated could “give themselves permission to come in.” That section of the shop now has its own loyal following, including many Island men. Churchmouse serves a clientele that ranges from seven year olds to seniors, all connected by an interest in knitting, crochet, needlepointing and the enjoyment of tea. “These activities include all types of people,” said Koval. “Young and old, men and women, avid and occasional, analytic and organic... all connected by the same passion.” The couple’s future plans for Churchmouse includes expanding its web site and continuing its pattern design business. Over the years, Hutchin designed scarves, hats, gloves and baby clothes and

gave the patterns free of charge to customers who purchased yarn. In 2009, the couple launched the first line of Churchmouse patterns. “We worked with a Brooklyn photographer who, because he’s also a knitter and designer, really captured the knitting. Originally from the Northwest, he really captured Bainbridge Island, too.” The patterns were sold initially in the store and online, but then other yarn shops expressed interest in carrying the line. The couple ran a marketing campaign that attracted more yarn shops and then added a second collection of patterns, “Churchmouse Wee Ones,” for babies. New collections are in the works. Today, Churchmouse has nearly 300 wholesale customers throughout the US, Canada and England. “We just added an Australian shop and heard from one in Paris,” said Koval. Churchmouse recently had visitors who learned about the shop, and about Bainbridge Island, after purchasing a pattern in a Chicago yarn store. Despite the potential of this side of their business, both Hutchin and Koval admit that the heart of the enterprise is their Bainbridge Island shop. “We offer what many other yarn shops offer,” said Hutchin. “The only way we can be different is with how we make you feel when you’re in our store. Did we inspire you? Did we encourage you? Did you learn something? Did you have a success? Did you make a friend when you were here?” With this kind commitment and a passionate staff, Churchmouse proves on a daily basis that the art of customer service has not vanished.

Red Cross May classes in Kitsap County The American Red Cross is Offering CPR, first aid and other preparedness classes in Kitsap County during the month of May. All classes will be held at the West Sound Service Center at 811 Pacific Avenue in Bremerton unless otherwise indicated. Special classes may also be arranged at the workplace, or amongst community groups. All classes are taught by certified Red Cross volunteers. Class fees support Red Cross services and programs in the community. Continuing Education Units are now available for many classes. Call (360) 3773761 to request information. Classes are as follow: Adult CPR/AED with First Aid ($63- 2 year certification) • May 17 — 9 a.m. – 3 p.m. Bainbridge Island Boys and Girls Club • May 28 — 9 a.m. – 3 p.m. Adult CPR/AED Training ($48- 2 year certification) • May 10 — 5:30 p.m. – 8:30 p.m. • May 24 — 5:30 p.m. – 8:30 p.m. Adult, Infant and Child CPR ($60- 2 year certification) ($10- optional BBP add-on) • May 14 — 10 a.m. – 2 p.m.

First Aid ($42- 2 year certification) • May 26 — 5:30 p.m. – 8:30 p.m. Adult, Infant and Child CPR with First Aid ($75-2 year certification) • May 7 — 8 a.m. – 3 p.m. Bainbridge Island Fire Department • May 29 — 8 a.m. – 3 p.m. CPR and First Aid Review ($52- 2 year certification) • May 20 — 9 a.m. – 1 p.m. CPR for the Professional Rescuer and Healthcare Provider ($82-2 year certification) CPR for the Professional Rescuer (Lifeguard) 1 year certification • May 13 – 9 a.m. – 5 p.m. Babysitter Training ($50) • May 7 — 9 a.m. – 4 p.m. Wilderness and Remote First Aid 16 hrs, $120 • May 14-15 Site and time to be determined, call for details. Lay Responder First Aid/CPR/AED Instructor Course • Dates and time for May class to be determined, call for details.


Amy’s on the Bay announces staff promotions

Bruce Titus purchases Port Orchard’s Bay Ford

May 1, 1991, Amy Burnett first opened the doors to her art gallery on Pacific Avenue in the heart of downtown Bremerton. Hers was one of the only retail businesses in the seemingly abandoned downtown. Several other art related businesses joined her in the 14,000 square foot building. As reported on Northwest television news coverage, Burnett was the first to purchase one of the prime Bremer Trust buildings. Those first few years, the business became one of the top earning fine art galleries in the nation, won a national Main Street business award, and won a State Georgie tourism award. Burnett has since been featured in five national art magazines. And in 20 years the gallery has accommodated many fundraising events, even catching eye of Bill Gates, Ken Griffey Jr. and Clint Eastwood. Burnett is optimistic about Bremerton’s future, but like many other business owners was disappointed that in the current economy, and in a time of when downtown is struggling, Kitsap County would almost triple her property tax. “But I am trying to hang in there,” Burnett said. To celebrate the 20 year anniversary, a gala party has been planned for the evening of Friday May 6. Everyone is invited. There will be music, prizes, artists in action, a photography exhibit and other galleries will be participating with new features. One large gallery area will be dedicated to a special Face Show and proceeds from art sales will be donated to the 911 Memorial Project at Evergreen Park. Also there will be a celebrity face-art-piece where such notables as Scott Bosch, Port Orchard Mayor Lary Coppola, Bremerton Mayor Patti Lent and Bill Hoke have signed their face creations. Burnett still produces a weekly half ho ur TV show on BKAT that airs every Sunday at 6:30 p.m. and writes for the WestSound Home & Garden Magazine. She is also curator of the Pyrex Museum that is receiving national acclaim and featured in the new edition of the Washington Curiosities Book.

The Quisenberry brothers, Kin and John, have sold their longtime Port Orchard Ford Dealership, Bay Ford to a corporation owned by Bruce Titus. The dealership is now known as Bruce Titus Port Orchard Ford. The Titus' family goes way back in Puget Sound auto industry history. Leon Titus, and a partner divided the Ford territory in Western Washington between them in 1918 and the first Titus dealership was in Chehalis. Through the years, the family car business morphed into two branches, with the biggest one being Titus-Wil l Ford Toyota, Inc in Tacoma. The smaller Bruce Titus Automotive Group, Inc., of which Bruce Titus is president, has eight Puget Sound locations, and sells Nissan, Subaru, Chrysler, Jeep and Mitsubishi vehicles.

May 2011 Kitsap Peninsula Business Journal•KPBJ.com 31

Amy’s on the Bay Restaurant & Bar, one of Port Orchard’s premier dining establishments, recently announced several staff promotions. Benjamin Downey has been promoted to the position of Executive Chef. A 14-year veteran of the restaurant industry, Chef Downey has a Culinary Arts Degree from the Art Institute of Seattle and a Culinary Arts Graduation Certificate from Davis Applied Technology College in Utah. Justin Sura, the restaurant’s former sous chef, has also been L-R: Back row- Lorie Meyers, Ben Downey, Justin Sura. named as the new Chef. Chef Sura Front row- Amy Igloi, and Karla Strittmatter has been with Amy’s since it opened five years ago, beginning as a line cook and providing great food and great service that working through the ranks of sous chef then brings people back time and again. to chef- which speaks volumes of his skill The management and chef team would and expertise during his apprenticeship. also like to thank their vendors, including In the front of the house, Karla Valley Center Produce, Puget Sound Dairy, Strittmatter has been promoted to the post Dave Munroe of Food Services of America and Kevin McGuffin of Sysco, for their of Dining Room Manager after serving as unwavering commitment and dedication to Assistant Manager, and Lorie Myers has helping Amy’s On The Bay provide the assumed the Assistant Manager duties. highest quality of food and service for its Strittmatter has a Culinary Arts Degree customers. In addition, Igloi noted she from the Arts Institute of Seattle and nine would like to recognize the support of her years of restaurant experience while Myers creative and diligent staff that were has been in the restaurant industry for over instrumental in helping the restaurant raise 20 years. almost $20,000 for local community Restaurateur Amy Igloi states they will charities in the past six months. continue offering the finest, local and The 30-year old Igloi is no stranger to sustainable cuisine and look forward to the restaurant business, having never adding new favorites to the menu in the worked in any other industry. She is a coming months. Amy’s staff knows that member of the Board of Directors of the their success will continue to be built on Washington Restaurant Association, as well as serving on the board of the Association Olympic Radiology brings of Washington Business, and was the 2009 Open MRI to NK and beyond winner of the National Restaurant Association’s American Dream Award. She Olympic Radiology announced that the is also very involved in the local community Philips Panorama High Field Open MRI is serving on the board of the Boys and Girls now at it new Poulsbo location. Club, as well as several other groups. Magnetic Resonance Imaging (MRI) For more information, or to make a allows physicians to see inside the body reservation, call 360-876-1445 or visit without surgery or the use of ionizing www.amysonthebay.com. radiation. MRI uses a powerful magnet, lowintensity radio waves and computer technology to create very detailed images of the soft tissues, muscles, nerves and bones. Many patients, due to their size or feelings of claustrophobia, prefer open MR systems. Previously, local residents would need to travel to Seattle and Port Orchard for an Open MRI. Olympic Radiology’s Philips Panorama High Field Open MRI boasts an almost 360 degree opening, allowing children, adults, and anyone with claustrophobia to be scanned in comfort. The high-resolution images produced by the MRI allow physicians to make a more confident diagnosis. “Local residents benefit from the comfort of an open system paired with the convenience of a location close to where they live and work. Their referring clinicians benefit from the high-resolution images to see things previously unseen on Open MRI systems.” said Michele Sauer, administrator of Olympic Radiology. The Panorama Open MRI is located within Olympic Radiology’s new office in Poulsbo’s Cascade View Medical Center within College Marketplace at Olhava adjacent to the entrance to Olympic College’s Poulsbo campus.

Amy Burnett Gallery celebrates 20 years


May @ 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.

President’s Message Desiree Steffens Port Orchard Chamber 2010-2011 President

Please Mark your calendar for May 19th, 5-8 p.m. for our Annual Business Showcase at SK8Town Event Center. Join us for refreshments, networking, learn

about dozens of area businesses, make new contacts, find new clients and celebrate with the winners during the announcement of the 2011 Best of SK Awards. Please also join us in downtown Port Orchard for the Kitsap Harbor Festival featuring the Annual Murder Mystery, Pirate Costume Contest, Pirate Ball, entertainment, Beer Garden, Farmer’s Market, Tall Ships,

www.portorchard.com 360-876-3505 ‘Seagull” Wings Cook-off and the infamous Seagull Calling Contest! Thanks to Harrison Medical Center for sponsoring our recent Free CPR class and breakfast at our Chamber 101 meeting. AND Thanks to those of you who attended the grand opening and ribbon cutting at The Waters Restaurant and at Capriccio Catering!

SPOTLIGHT ON A MEMBER Matt Carter — Carter’s Chocolates

Thursday, May 12th, 2011, 11:30 a.m. Location: McCormick Woods Banquet Room Program: CDR Cynthia Kuehner, Family Nurse Practitioner, Naval Hospital “Provincial Reconstruction in Afghanistan” Commander Kuehner will share her experiences from a recent deployment in Afghanistan, from her perspective as a female Naval Officer, including discussion and photographic images. Sailors of the Quarter Awards will be presented and raffle recipient will be the Heroes’ BBQ at the Armed Forces Day Festival. Meeting reservations are necessary to attend and can be made online at www.portorchard.com or by calling the Chamber at 360-8763505. Reservation by May 10th. Luncheons are open to members and non-members. Chamber members $20 if prepaid and $22 at the door, non-Chamber members $22 in advance.

Chamber Morning Seminar Wed. May 18th, 8:00 a.m. Port Orchard Pavilion. Kitsap Emergency Management Dept. Personal, employee, and business facility preparedness, why we prepare (an introduction to PNW earthquakes and tsunami’s) and recovery/continuity of operations. Don’t this free seminar reservations to miss office@portorchard.com 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. Call the for exhibitor fees or go to Chamber www.portorchard.com. Attendance at the event is free and open to the public. The Showcase is also the Business After Hours for the month of May AND 2011 Best of SK Awards will be presented.

WELCOME NEW MEMBERS Advanced Endodontic Specialists • Dr. Giselle Eitter 1565 Woodridge Dr. SE, Suite B, Port Orchard, WA 98366 360-434-3636 Sherwin Williams • Jason Rodriguez 1382 SE Lund Ave, Ste. 4, Port Orchard, WA 98366 360-874-7700 The Waters Restaurant & Café • Rachel Smith 150 Harrison Avenue, Port Orchard, WA 98366 360-895-6061

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32 Kitsap Peninsula Business Journal•KPBJ.com May 2011

Matt Carter is the owner and operator of Carter’s Chocolate currently located in the Towne Square Mall. Matt describes his business as “the most awesome in the world.” His chocolates and ice cream have been voted as Best of SK. He is very pleased to announce he is expanding to wedding cakes. Find Matt with Carter’s Chocolate’s ice cream cart at the Farmers Market every Saturday; each Thursday at Concerts at the Bay (rain or shine) and almost all other community events. He also has a new line called “Carter’s Sauce.” It is the best caramel sauce in a jar! Matt moved to the west coast from upstate New York. He enrolled in the first class at the Art Institute and then completed Pastry School at the South Seattle Community College. In October of 2008 he moved here from Capitol Hill in Seattle. It was actually attending Cedar Cove Days that, through the eyes of a tourist, prompted him to make the move. The beautiful scenery and the people who seem to really appreciate what they were doing — contributed to his selecting Port Orchard as his home. Matt and his partner, John, spend their free time caring for their chickens, turkeys, ducks and alpacas. When he is not working he uses this rare time to get a little sleep while planning for his business. Matt is greatly appreciative of the Port Orchard Chamber for supporting his business, giving him the opportunity to participate in their activities and events. Matt wants our members to know that Carter’s Chocolates can create all kinds of fun things for your business, including your logo. They offer a selection of client gifts, corporate gifts, gift boxes and gift certificates that will set you apart. He expects in early May, to move the store to a new location at 160 Bethel, Port Orchard.

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Building a Billion Acts of Green… Earth Day Is Every Day Projects

The volunteer group that worked on the Sinclair Inlet Cleanup. They have volunteered on this project every Earth Day for the past 21 years. “We collected 70 bags of general garbage Bremerton. parking for volunteers in Bremerton was — bottles, cans, plastics, styrofoam, While not an earth day event, but a donated by Diamond Parking Service cigarette butts, batteries, paper, glass — markedly final note to a project five years Donald Larson, president of Kitsap Trees plus one truck and 12 automobile tires, a running and nearly $400,000 spent, & Shoreline Association (KiTSA) and bowling ball, TV, microwave, two large sofa Housing Kitsap received a “No Further Kitsap Diving Association (KDA), has led cushions, and a syringe,” said Denis. Action Needed” (NFA) letter from the the event since its inception in 1990. On April 23, the Mountaineers Earth Day State Department of Ecology for cleaning “Volunteers and Local Business support Celebration offered a range of activities for up and revitalizing a contaminated site on have made the Sinclair Inlet Cleanups participants for families from around the Mitchell Avenue in Port Orchard. possible for 21 years, and I’ve sure appreciated Puget Sound who gathered to celebrate a day Mayor of Port Orchard, Lary Coppola all that helped over that time” said Larson, of volunteer stewardship, interpretive hikes, said; “I believe this was a well-executed adding that “Jim Anderson in particular stood storytelling, wildlife encounters, and natureproject and I am glad for the help of all out this year, collecting a bag of Harborside inspired theatre games. The celebration took these agencies and the fine job by Housing Marina sidewalk trash using a grabber tool, place at the Kitsap Cabin and Forest Theatre, Kitsap in monitoring and coordinating this from his motorized wheelchair, with his as well as The Mountaineers Foundation’s effort,” adding that, “They acquired a Guide Dog along side.”  Jim’s wife, Jackie, also Rhododendron Preserve, near the wonderful team of consultants in Grantcleaned up a section of the downtown Bremerton ferry.  Solutions Inc., Kennedy-Jenks, and RV Bremerton waterfront with a grabber tool Built in 1918 by Mountaineers volunteers, Associates, and without the funding also, because physical limitations prevent her Kitsap Cabin is listed on the Washington support from the U.S. Environmental from bending over to pick up trash.  State’s Heritage Register as a historically Protection Agency and State Department In   Port Orchard; organizer John Denis significant site and the 21-acre property is of Commerce, this would have been reported that dry and mild weather enabled also the home of the Kitsap Forest Theater. impossible to accomplish.” their team of over 50 people, mostly high The 460-acre Rhododendron Preserve is one While these are just some of the school students, to collect more than six of the largest remaining parcels of Puget activities and projects that took place here cubic yards of garbage along Port Orchard, Sound lowland old-growth forest and home and across the country, it just proves Earth Waterman, and Manchester waterfronts and to wildlife like salmon, bear, deer, coyote, and Day initiatives could change the stencil approximately 80 storm drains. beaver. importance that people place on the Volunteers consisted of Alternatives to Trees and Creatures event took place on environment when governments, Detention Program Tea, South Kitsap High April 27  at the Wonders of Learning Precompanies, and individuals rally together to School Honor Society and Key Club, School, Crossroads Neighborhood Church find greener alternatives and sustainable Central Kitsap School District, Denis family on Military Rd. & Fairgrounds, in solutions. Together our actions add up! and local neighborhood folks. Dominos, Papa John’s, Pizza Factory, and Godfather’s donated pizzas to hungry volunteers.

Sewer treatment plant upgrades helping Puget Sound The Washington State Department of Health opened 140 acres of shellfish growing area on April 13. The area was closed in 1993. Opening the area is possible because of upgrades completed at Kitsap County’s Suquamish Sewer Treatment. Since 1998 the county has doubled capacity at the plant, and improved performance and reliability by installing new treatment systems and back-up energy supplies. Since 1995 over 3,200 acres of shellfish growing areas have been upgraded through treatment plant upgrades and work by partner agencies including cities and the Health District’s Pollution Identification and Correction program. This new upgrade is the latest in the series of recognitions for Kitsap County’s excellence in sewage treatment design and operation. Kitsap County’s Manchester Plant is the only treatment plant to receive the Washington’s Department of Ecology “Outstanding Wastewater Treatment Plant Award” every year since 1995. The County’s Kingston Treatment plant won the award every year since it was rebuilt in 2005. The Suquamish Treatment plant has a perfect operating record since the upgrade there in 1998. The County’s Board of Commissioners approved a funding plan last December to complete a series of improvements at the Central Kitsap Treatment Plant.

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By Kathleen Byrne-Barrantes Earth Day 2011 on April 22nd marked its 41st anniversary. Now more than ever, this seemed like a pivotal time to commit to conserve, protect and sustain our planet. The Earth Day Network’s Billion Acts of Green campaign was there to record the power of single, individual acts when they are added up. By the close of earth Day 2011, there were 102,025,106 Acts of Green on the “Billion Acts of Green Earth Day Events” website located at http://act.earthday.org/user. Naval Facilities Engineering Command (NAVFAC) coordinated the “NAVFAC Northwest Earth Day Events” starting on April 14-24 in Silverdale to Bremerton, ending at Bangor. In keeping with this year’s Earth Day theme, “Partnering for a Greener Future,” NAVFAC Northwest partnered with local commands and community organizations to hold the Earth Day Fair on Naval Base Kitsap Bangor. The fair included a barbecue lunch to all persons with base access and the Navy Band Northwest popular music group “Passages” provided entertainment. Participants included community organizations, such as the Hood Canal Salmon Enhancement Group, Kitsap County Master Gardener’s Association, Washington State University Kitsap Small Farms Team, Kitsap County Beach Watchers Program, Kitsap County Noxious Weed Control Program and Solid Waste, in addition to NAVFAC NW energy, recycling and environmental displays. A variety of alternative energy vehicles were also on display. The 21st Annual Earth Day Sinclair Inlet Cleanup on April 16  was coordinated by the Kitsap Trees & Shoreline Association (KiTSA) and Kitsap Diving Association. Once again, project support was provided by PADI Project A.W.A.R.E., Kitsap County’s Surface and Storm Water Management Program and the Washington State Dept. of Transportation (WSDOT). Printing and paper was provided by Blue Sky Printing of Poulsbo, refuse collection and disposal by Brem-Air Disposal Waste Management (WM), materials and refreshments by local merchants while free


2011 Honda CR-V: An ideal Northwest SUV By Bruce Caldwell The 2011 Honda CR-V isn’t what most people consider an SUV, but it’s all the SUV that most people really need. It’s a multipurpose vehicle that can handle all kinds of weather and road conditions, but it doesn’t sacrifice daily driving comfort for rare extreme traction situations. In other words, the CR-V is a station wagon type crossover utility vehicle/passenger car that can also handle snow and mud, not a truck-based SUV that’s fearless off road and can also handle occasional commuting. Walkaround: The 2011 Honda CR-V is a handsome vehicle in a conservative, functional way. Its styling is more sedaninfluenced that macho stump-climbing SUV, but it’s a look that should hold up well. It won’t appear terribly dated in 6 or 7 years, which is another plus for Honda’s strong resale value. We liked the grille/headlight treatment, which was less aggressive than some current Honda models that we find unattractive. The rear view is also stylish. The Honda CR-V started out as a mini SUV or cute Ute, but it’s grown considerably. The current size is more midsize, but that’s a configuration that truly suits most people. It’s small enough to find parking spaces and handle city driving, but it’s large enough to comfortably carry four

or five passengers (depending on the size of the second row middle position occupant) and lots of cargo. Interior: The interior is a CR-V highlight. The ergonomics are excellent as are the materials fit and finish. It isn’t flashy, but the textures and colors are well coordinated. Controls are well placed and easy to use. Storage is abundant with many

THE ALL NEW

34 Kitsap Peninsula Business Journal•KPBJ.com May 2011

2011 HONDA CR-V

medium-sized bins, pouches and storage areas. The sound system was excellent. Driver and passenger leg and headroom is great. I’m above average height and I had ample room for driving and I still fit comfortably in the second row with the front seat all the way back. The floor is flat with a large dead pedal. The driver’s seat has power lumbar adjustment, but the passenger seat doesn’t. The seats had hi/lo heating. The thick, nicely contoured leather steering wheel was always comfortable. It was fitted with audio, cruise, and phone controls. The intermittent wipers were rainy northwest perfect, both in terms of efficiency and actuation. The cargo capacity was more than ample for a long weekend trip. The floor is flat and the hatch opening is large. There’s a removable mid-level package tray for added versatility. Under The Hood: Hondas are known for excellent engineering, which was very evident on the CR-V. The 180 horsepower 2.4-liter DOHC VTEC 4-cylinder engine was as smooth as any V-6 engine. Power was more than adequate and the 5-speed automatic transmission functioned perfectly. We averaged over 25 mpg in driving that favored freeways. Our experience verified the EPA estimate of 21 city/27 highway. Serving Kitsap County for 30 years

The CR-V has Honda’s Real Time 4Wheel Drive System, which is an automatically engaged all-wheel-drive system. It works seamlessly for the limited amounts of snow we get in the Puget Sound basin and it’s ideal for rainy, slippery roads. The four-wheel disc brakes and switchable traction control help the CR-V’s all-weather efficiency. Behind The Wheel: The Honda CR-V was a pleasure to drive. It’s smooth and quiet. It’s comfortable with dual-zone HVAC and supportive seats. It’s not exciting like a sports car, but that isn’t why people buy the CR-V. It does everything it’s supposed to do and it does all those tasks very, very well. Whines: We really had to search to find anything to complain about. The best we could do was the non-adjustable center console cup holders. Small cup holderssmall complaint. Bottom Line: The 2011 Honda CR-V is a great crossover SUV for western Washington residents. It’s neither too big nor too small; it has ample interior and cargo space; it gets very good fuel economy; it’s attractively priced; and it’s a pleasure to drive in all the weather conditions encountered locally. The Honda CR-V is a right-sized crossover/SUV that’s ideally suited for most northwest drivers.

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2011 Chevrolet Cruze could be GM’s best compact sedan ever

speakers ($445) is also available on the LT and LTZ, as is a power sunroof ($850). Other options include a Driver Convenience Package ($475) with remote start, Bluetooth and rear park assist, cruise control and tire/wheel packages that add rear disc brakes. The Cruze also comes standard with more safety features than any car in its class, starting with 10 airbags: front, side-impact and knee-protection airbags for front passengers, rear side-impact airbags and full cabin head-protection curtains with rollover deployment. GM’s OnStar telematics are standard, with Automatic Crash Response and other services free for six months. Other standard safety features include Stabiltrack electronic stability control, anti-lock brakes (ABS). Walkaround: While the conservative styling of the Chevy Cruze isn’t likely to blow anyone away, it’s still quite attractive, nicely proportioned, and slightly larger than nearly all of its competitors, including the Honda Civic, Toyota Corolla and the all-new 2012 Ford Focus. At 181 inches bumper-to-bumper, it rides on a wheelbase of 105.7 inches — making it less than two inches smaller than some midsize sedans, including the Ford Fusion. Large headlight housings that sweep upward an d around the front edges of the car, blend into the front fenders that meet the steeply raked windshield housed between sloped rear pillars, and a subtly ached-roofline, for a generally sporty profile. The wheels are pushed out to the corners, with minimal overhang, while the front end, dominated by a prominent Chevrolet Bowtie logo, seems to deliberately mimic the plug-in Volt sedan. Interior: The interior of the new Chevrolet Cruze is among the very best in the compact class, particularly when measured by sheer space, fit, finish, material quality and overall quietness. There’s lots of all of it. Instrumentation is big and easily readable at a glance, illuminated with ice-blue LED lighting. A digital display shows current gear, direction of travel, and a host of options for vehicle or travel information. It’s easy to cycle through the choices with a toggle on the turn signal stalk, and just as easy to set preferences for automatic vehicle locking and the like — impressive for a compact. The center stack is rationally laid out, with four large, primary knobs for volume, tuning, fan speed and temperature, each ringed with a nice rubber surround. Other switches are pushbuttons, for entertainment and information positioned just below a large display screen. Climate controls are at the bottom.

Storage space inside the Cruze is adequate, but not overwhelming. The trunk, with its large opening, offers 15 cubic feet of space — matching the best in class, with substantially more room than both the Honda Civic and Toyota Corolla. The rear seatbacks fold easily to expand truck space, but the bottom cushions are fixed, so the expanded surface isn’t entirely flat. Under The Hood: The 2011 Chevy Cruze offers a choice of two adequate, 4cyliner powerplants — both of which put 138 horses to the highway. There’s a 1.8-liter, and the turbocharged, 1.4-liter Eco version. Both the manual and automatic transmissions have six speeds, which is rare in this class. The automatic offers some high-tech features to help conserve fuel, and when married to the Eco powerplant, it delivers the best fuel economy — an EPA rated 42/Highway — of any conventionally powered

car in this class, and higher than most subcompacts. Behind The Wheel: We’ve had two occasions to drive the Cruze — one during a week-long visit to South Florida late last year, and again just recently as part of our regular test vehicle rotation. If there’s an area where Cruze doesn’t quite measure up to its competition, it would be acceleration. It does the 0-60 drill in around eight seconds, which is acceptable to most folks buying in this class, but it’s more about how hard the engine must work, and the need to keep it floored, to get this car moving. The Cruze also offers numerous innovations, such as electrically-powered steering that not only saves fuel, but is sharp, with a nice feel. This car is nimble and wellbalanced, delivering outstanding ride quality and exceptional handling. There’s very little wind noise or vibration in the cabin, and it’s one of the quietest compacts we’ve driven — in spite of it hard-working engine. What noise there is tends to be less obtrusive. Whines: Other than the acceleration issue, this is a sweet little ride, which we believe could easily handle more power. Bottom Line: Measured by features, mileage, handling, interior noise, space and quality, the Cruze matches or beats the best in this class. However, it does get pricey at the high end of the model range. The Cruze. has moved Chevrolet to the top of the compact sedan class for the first time in recent memory — and that in itself is worth your time to look.

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By Lary & Dee Coppola The new Chevrolet Cruze is the best small car GM has offered in North America in decades. It replaces the servicable, but boring, Cobalt, and like the successful Buick LaCrosse, the Cruze was jointly engineered by GM in Asia, Europe and the U.S. It enters the most competitive segment of the passenger-car market, proudly going headto-head against stalwarts like the Honda Civic, Toyota Corolla, Mazda 3, and VW Jetta, along with strong new competition from the Kia Forte and Hyundai Elantra. It holds its own against all of them, and outshines them in a number of key areas. Model Lineup: The 2011 Chevrolet Cruze comes in four models. The Cruze LS is powered by 1.8-liter inline four-banger delivering 138 horses and 125 pound-feet of torque, with a standard 6-speed manual, and optional 6-speed automatic ($925). It comes pretty well-equipped, including A/C, power windows, door locks with remote keyless entry, and six-speaker audio with single CD, auxiliary jack and XM satellite radio. 16-inch steel wheels are standard. The Cruze Eco is optimized for fuel economy, and powered by a smaller, 1.4-liter turbocharged eng ine offering the same 138 horses as the base engine. It’s lighter than other Cruze models, with aerodynamics making it slipperier through the air, and lowrolling-resistance tires on 17-inch alloy wheels. The Eco is rated at 42/highway with the stick, and 37 with the automatic. Designed to be Chevrolet’s conventionalengine fuel economy leader, the differences begin with 42 steps intended to trim weight, right down the size and location of welds in the body. As a result, the Eco tips the scales at 214 pounds less than the mid-level LT. The Eco also adds a host of aerodynamic tweaks, including some adapted from the Volt — such as active grille shutters that close at higher speeds, blocking much of the grille surface when the cooling demands of the engine allow it, and smoothing air flow over the front of the car. The Cruise LT is powered by the same frugal turbocharged engine, with the automatic standard. It also adds painted power side mirrors, and it can be equipped with a lot more options than the base LS, including the ($2,500) 2LT package. It adds a six-way power driver seat, leather seating surfaces, heated seats, leather-wrapped steering wheel and shift knob, Bluetooth phone connectivity, steeringwheel mounted audio controls, remote vehicle start and 16-inch alloy wheels. The top-of-the-line Cruze LTZ features the turbocharged engine and automatic transmission, and comes standard with the contents of the 2LT package, plus adding automatic climate control, an autodimming rearview mirror, ultrasonic rearparking assist and 18-inch alloy wheels with four-wheel disc brakes. An RS Appearance package ($695) is available for the LT and LTZ, which adds fog lamps, unique grille work, rocker moldings, a rear spoiler and racier instrumentation. A navigation system ($1,995) that includes a 40-gigabyte hard drive, 250-watt Pioneer audio system with CD changer and nine


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

36 Kitsap Peninsula Business Journal•KPBJ.com May 2011

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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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BITV Why the council on Oct.12, 2010 voted to exercise the Termination clause (9.2) in the BITV/COBI contract and not the Re-Opener renegotiation clause (9.3), I will never understand. But they did, and thereby forced the elimination of a much appreciated community asset. Over 70 community organizations aired programs in 2010 on BITV. Now to pour salt on the community wound, COBI is attempting to claim BITV equipment and assets. There is no language in the COBI/BITV contract that implies, in any way, COBI ownership of BITV equipment or assets. In fact the opposite is intended in paragraph 10.3 “No Relationship Established: The City shall in no event be deemed to be a partner, associate, or joint venturer of BITV.” And like all good contracts, paragraph 10.9 states “Entire Agreement: This Agreement contains all of the covenants, promises, agreements and conditions, either oral or written, between the parties with respect to the subject matter of the Agreement.” COBI counsel Johnson is correct in saying, “Nothing in the contract ever gave BITV ownership of the equipment.” Ownership of the equipment is not mentioned at all, and as P 10.9 says the promises, agreements and conditions in the Agreement are the total agreement. My fellow Comcast cable customers, how much do you think we are paying COBI each year? There are 4,600 of us on the island. Take a look at your invoice. There is the $1 P E G (Public, Education, Government) fee, which must, according to the Comcast/COBI franchise agreement and federal law, be used only for capital expenses related to PEG access television. That is $55,200 a year. Then there is a 5 percent of gross revenue franchise fee. That is $244,000. Plus there is the ‘Local Tax’ of 6 percent, which generates $292,000. Other franchisors do not charge a local tax. My

revenue numbers may not be exact but they are close, and I welcome a correction from COBI if they are not. The 4,600 of us are paying COBI a total of $591,000 a year! What are we getting for it? A delayed airing of a council meeting on channel 12.... and that’s it! Is it necessary for COBI to harass a now defunct organization and threaten ‘legal actions against BITV’, as reported in the Review of April 1? What is our $591,000 doing? It certainly could buy a few cameras. If any of you fellow Comcast cable customers would like to pass on your comments to council, send an email to council@ci.bainbridge-isl.wa.us. One email will automatically go to each of them. Wini Jones Past Board Chair, BITV Bainbridge Island

BAY FORD Cheers to the Quisenberrys. The end of a four-decade era arrived in Kitsap County with the news that Bay Ford in Port Orchard had recently been sold to Tacoma’s Bruce Titus. Often, transactions involving small businesses can be no more than a proverbial blip on the radar. I for one believe this is notable news, especially from a local standpoint. I had the privilege of beginning my management career in the auto industry at Bay Ford in 1986. I was hired by owners John and Kin Quisenberry to serve as their finance manager. In the four years I worked for them, they became as much as a family to me as an employer. John and Kin guided and supported me through the challenging years of starting a new career, and a young family. After hearing the news of the sale, I reflected on how much they meant to the Kitsap County landscape since their arrival in 1971. In the Howe Ford-Bay Ford era, the Quisenberrys employed literally thousands

of local residents with living-wage jobs. They provided hundreds of thousands of residents with cars and trucks. They injected millions into the local economy through their business and personal endeavors. They paid or generated millions upon millions in taxes to federal, state and local government coffers. They supported local charities and organizations. No retail business is immune from criticism or complaints; it comes with the territory. From a body-of-work standpoint, however, few individuals or businesses can boast they contributed to the local economy to the degree of the Quisenberry brothers. I congratulate them, wish them a happy and healthy retirement, and also wish the Titus family the best for what will surely be a successful venture in Port Orchard. And from a personal standpoint, I am grateful to John and Kin for their guidance during my early business life, and the love and support they showed my wife and children. Although it has been decades since we worked together, a day still does not go by where I don’t think of them with fond memories. Cheers to you, Qs. Greg Meakin Bremerton

EDUCATION “Education takes a vast hit in proposed House budget plan” The title above is very intriguing so to speak because it makes specific reference to making “reduced class sizes disappear.” That is without a doubt school reform because lawmakers are required to fund under the RCW’s for class sizes of thirty students, no less. What is really interesting here is that lawmakers are encouraging school districts to violate the requirements for class size in their negotiated agreements with the teacher unions. Obviously, any agreement between the unions and the districts means nothing because both


NLRB decision on Boeing plant is a dangerous precedent

sides work together to reduce class sizes and impose a larger tax liability onto the taxpayers. Therefore when school districts split classes in half, hire another teacher at a cost of $80,000 they have to fund that teacher from their appropriated funds. It is NOT the responsibility of the taxpayers to fund that additional teacher through a bond or a levy. As a matter of fact if lawmakers are funding schools for smaller class sizes (more salary, more retirement, more health benefit, etc) they are illegally increasing the tax liability on the taxpayers. At that point Attorney General Rob McKenna needs to step up and get them under control or is there a problem understanding or remembering how the Constitution works? To solve this huge education funding hit the lawmakers are taking money from the 2011 educati on money to pay for the 2011-13 education money — problem solved.

I did not take accounting but if I understand this right lawmakers are taking money from a budget that has no money in it to fund a budget that starts on 1 July 2011 and runs until 2013 that has no money in it yet. This accounting thing is so easy because I always thought that was “mis-appropriation of funds” or maybe “cooking the books.” I’m enlightened now about how South Kitsap School District, in 2006, took funds for “special education” to pay teacher salaries and TRI contracts then sued the state to get money for the shortfall in “special education” funding. In Washington State accounting that means we don’t have money to spend now but we will spend next years money that we don’t have yet to show the people what a good job that we are doing. Larry L. Mann Port Orchard

May 2011 Kitsap Peninsula Business Journal•KPBJ.com 37

By Don C. Brunell, President Association of Washington Business During the 2008 presidential campaign, candidate Barack Obama promised organized labor that he would support their agenda. Having failed to get labor’s priorities through Congress, the Obama administration is seeking to achieve the same goal through regulation. For example, the president campaigned on passing card check, a union-backed measure that eliminates the secret ballot in union organizing elections. Inappropriately dubbed the “Employee Free Choice Act,” card check actually eliminates free choice by allowing union organizers to watch as an employee checks yes or no to unionize the company. If a majority of workers check the “yes” box, the employer would end up in binding arbitration. The scheme was too much even for liberal icon Sen. George McGovern, who wrote in The Wall Street Journal, “Under EFCA, workers could lose the freedom to express their will in private, the right to make a decision without anyone peering over their shoulder, free from fear of reprisal.“ In the face of the resulting uproar, Congress tabled card check. In response, the president went about stacking the National Labor Relations Board (NLRB) to fulfill his promises. Currently, three of the four members of the NLRB — a supposedly neutral body — are former union lawyers. Now the reconstituted NLRB has stepped in on behalf of the unions, asking an administrative law judge to shut down Boeing’s non-union South Carolina production facility. The reason? The unions claim that setting up a second production line in South Carolina for the 787 Dreamliner was an act of retaliation against the unions for strikes against the company. (The union has shut down Boeing’s commercial aircraft production line four times since 1989, and a 58-day strike in 2008 cost the company $1.8 billion.) Acting NLRB General Counsel Lafe Solomon says Boeing acted out of “anti-union animus,” and its decision to move had the effect of “discouraging membership in a labor organization” and thus violates federal law. This is what actually happened: Although its union contract didn’t require it, Boeing executives negotiated with the International Association of Machinists and Aerospace Workers to build the Dreamliner at its existing plant in Washington State. The talks broke down because the union wanted, among other things, a seat on Boeing’s board and a promise that Boeing would build all future airplanes in Puget Sound. So, Boeing management did what it judged to be best for its shareholders and customers — it looked elsewhere. In October 2009, the company settled on South Carolina, which, like the 21 other right-to-work states, has friendlier labor laws than Washington. In a conference call at the time, Boeing chief Jim McNerney put it bluntly, saying the company couldn’t have “strikes happening every three to four years.” The move to South Carolina was a reasonable business decision that has created more than 1,000 jobs and has generated roughly $2 billion worth of investments. And Boeing still has a strong presence in the Puget Sound where its workers are among the best paid in America. With the 787 already three years behind in delivery, a strike or any disruption in production schedules would be crippling. With their patience running thin, airlines have already removed the provision in their purchase agreements that forgo penalties for strikerelated delays. Every delay only gives competitor Airbus the opportunity to bring its new technology to market and even further jeopardizes Boeing’s 800 orders for 787. If the NLRB gets its way, Boeing would be powerless to act regardless of what the union did because any response other than capitulation would be deemed “retaliation.” The NLRB’s position puts our economic recovery at risk. As The Wall Street Journal editorialized, “It would essentially give labor a veto over management decisions about where to build future plants. And it would undercut the right-to-work statutes in 22 American states — which is no doubt the main union goal here.” Allowing the government or unions to dictate investment decisions and plant locations is a very bad precedent to set, whether it be Congress, the president or regulators like the NLRB.


Boeing, the NLRB, CFLs and anarchists Is it just me, or is it getting more difficult to chalk up President Obama’s lack of leadership as simple incompetence, rather than an all out assault on America and all that it stands for? The recent news of the arrogant lawsuit against the Boeing company by Obama’s unelected National Labor Relations Board (NLRB), is more than just additional evidence of Obama’s “incompetence.” What it amounts to is pure hostility against the bread and butter foundation of our country — t he private sector and the free market. In case you haven’t heard, Obama’s NLRB has issued an order that seeks to actually prevent Boeing from completing construction of it’s 787 plant in South Carolina, where 1000 hired workers are due to begin working in July, and force it to build that second 787 line here in our state. And while I certainly support increased business and jobs in our state, what this order means is that Boeing would have no choice but to continue enduring costly strikes by the hostile unions that represent its workers. What’s wrong with this picture? Joe Trauger, a vice president at the National Association of Manufacturers, was widely quoted as saying that if the NLRB complaint succeeds, “…no company will be safe from the NLRB stepping in to secondguess its business decisions on where to expand or whom to hire.” In the 36 years I lived in Washington State, and the 32 I’ve been in business here, I’ve witnessed a steadily progressive decline in our state’s business climate — most notably in how unions and environmental groups control the politics and policy decisions of the state legislature as well as the Governor’s office. Washington has suffered the arrogance of one party rule for nearly thirty years.

Workman’s compensation requirements enacted by a succession of businessunfriendly legislatures, and the volatile atmosphere that unions have created for employers are what have led to Boeing to steadily decrease its footprint in our state. Moving its headquarters from Seattle to Chicago in 2000 should have been the proverbial 2X4 to the head of the governor and legislature. Instead, Governor Gregoire shrugged and said, “It’s no big deal. It’s only 900 jobs.” Meanwhile the antibusiness attitude in Olympia continues to grow, force-fed by union campaign LARY COPPOLA contributions. Boeing’s decision The Last Word two years ago to build the second 787 plant in South Carolina — which should have been another 2X4 to the legislature’s head — was ignored. The 2010 elections were a clear mandate against the extortion style war that unions have waged against local government budgets, private sector success, and ultimately, the taxpayers, by over-regulation. It will be interesting to see if the anger that fueled the 2010 election results can be sustained and leveraged, because make no mistake, the Obama administration will not stop until it crushes the business community under the heavy heel of big government. What I see happening if the NLRB’s power grab is successful, is companies not moving operations to right-to-work states as Boeing did, but moving them to other countries outside of the NLRB’s grasp. And that will be the death spiral for our nation’s industrial base and its manufacturing capabilities.

Ironically, while Atlas Shrugged plays in limited release around the country, the business world is living the reality of heavyhanded government’s relentless drive to depress economic prosperity and freedom. The first local candidate to announce a run for office is Seabeck resident and political newcomer Axel Strakeljahn, who will seek the Port of Bremerton seat being vacated by retiring Commissioner Bill Mahan. Axel has a strong business background, serving as the manager of the Port Orchard Fred Meyer store, where he is responsible for overseeing 250 employees and millions in annual sales. He has been with the chain for 15 years, previously managing two Pay ‘n Pak stores in Bremerton and before that, the Ernst Home Center in Port Orchard. Raised by German immigrants, he has lived in Kitsap his entire adult life. I’ve known Axel for long time, and he’s a strong manager who keeps a constant eye on the bottom line. In my view, he’d be a welcome addition, bringing a strong, business-oriented focus to the Port. A recent KING-5 news report stated that vandals “dressed in black clothing with hoods and masks,” smashed the windows of a Seattle Chase Bank branch and left fliers expressing solidarity with various jailed anarchists. The same bank was reportedly vandalized in March “by demonstrators showing solidarity for an anarchist facing trial in Greece.” An anonymous (of course) poster on the website pugetsoundanarchists.org took credit for the riot, stating, “This action was taken because banks are a clear symbol of the misery and slavery that we experience under capitalism. We chose to use solidarity as a weapon in our struggle against power

because our passion for freedom knows no borders or prison walls.” Oh please… everyone knows the real perpetrators must have been Tea Partiers, because as Pulitzer Prize winning columnist Eugene Robinson of the Washington Post explained in January, “Violent political rhetoric and the threat of political violence in this country comes almost exclusively from the right.” Sometimes I just don’t understand the rationale of rabid environmentalists. For example, they have forced the systematic elimination of the incandescent light bulb invented by Thomas Edison over 100 years ago in favor of those lame compact fluorescent lights (CFLs). Beginning in 2012, we’ll see the phaseout of the 100 watt incandescent light bulb. The final phase-out of incandescent lights takes effect in 2014 with the elimination of all incandescent lighting down to the 40 watt bulb. On the surface, it sounds good, because technologies, such as CFLs are much more energy efficient. However, as usual, neither the environmentalists, nor our federal government have thought this thing all the way through, failing to consider three very important facts: • CFLs contain mercury, and if you break one it produces toxic mercury contamination that can be particularly hazardous to children and pets; • CFLs are considered hazardous waste and are not supposed to be tossed in the trash; • The majority of CFLs are manufactured in China, which once again makes the U.S. consumer dependent upon a foreign source for a mandated product. Is it just me, or don’t we deserve better?

38 Kitsap Peninsula Business Journal•KPBJ.com May 2011

Why Obama will be re-elected in 2012 So one of the most lauded political writers in the country says that while conventional wisdom deems the reelection of the President, the CW is wrong. “It’s not true,” writes Peggy Noonan in the Wall Street Journal. “It’s all wrong. Barack Obama can be taken, and his ADELE FERGUSON ad v e r s a r i e s haven’t even Politics noticed. In fact, he will likely lose.” I am sorry to say that I disagree. I wish I didn’t have to. God knows, I don’t want to. This first black president from whom we expected and hoped for so much has just about got our country on the ropes in the two years he’s been in office. Six more years of his incompetent management and we’re going to be lumped in with third world nations. The fact he’s black has nothing to

do with his inability to do the job. He was raised by white people and associated as an adult with a lot of whites he would have been better off to avoid. Let’s start with Miss Noonan. While she has shown a splendid talent in writing — she’s most famous for writing the speech Ronald Reagan gave after the space shuttle Challenger blew up — her ability as a political prognosticator doesn’t come up to that. In fact, she has been kind of a kiss-up to Obama so it’s a surprise that she has finally gotten the message that he just hasn’t got it. “The more that people experience his leadership, the less they like his leadership,” she said, which probably explains her sudden change of heart. Though support of his leadership has been waning, his personal approval numbers remain high. Miss Noonan explains that as people who are unwilling to tell a pollster that they don’t like a man they elected two years ago, with excitement and hope, by a margin of 9.5 million votes.

“There are two things I have never heard, not once, in the past year,” she wrote, “I love this guy — I love Obama,” and “If only John McCain were president, everything would be better.” The only hope of the president and the Democrats, says Miss Noonan, is that “Republicans in the early caucus and primary states will go crazy. They hope the GOP will nominate for the presidency someone strange, extreme or barely qualified.” If the Republicans do that, they’ll be fielding a candidate just like the one the Democrats did three years ago who won. My dictionary defines strange as “of relating to another country; not native to or naturally belonging in a place, not before known, heard or seen; exciting wonder or awe, strikingly uncommon.” Sound like anybody you know of? The Wall Street Journal headlined a story “Who’s the Extremist Now?” that discussed Obama’s “willingness to shut

down the entire federal government rather than see Planned Parenthood’s funding cut.” And a man whose only experience as an adult was as a community organizer certainly was and has proven to be barely qualified for the most important job in the world. Why will Obama be reelected? He’d have to be found guilty of murder, rape or treason for black Americans to throw in the towel on him. Take them plus white Democrats who know the power structure begins in the White House and they’d stick with him no matter what he did. Once, in Olympia, a member everybody hated got into a jam and was only rescued by an action of the Speaker, a fellow party member. Why, asked a disgusted listener, did you save that SOB? Because, said the Speaker, he’s our SOB. Why will blacks and most Democrats vote to reelect Obama despite his being a dud as president? Because he’s their dud. (Adele Ferguson can be reached at P.O. Box 69, Hansville, Wa., 98340.)


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May 2011 Kitsap Peninsula Business Journal•KPBJ.com 39

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