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November 2011 Vol. 24 No. 11

The Voice of Kitsap Business since 1988

Cruising Into Port Orchard Custom yacht builder bringing 50 family wage jobs to town Northcoast Yachts, a builder of custom yachts, has announced that it will relocate its operations from the Port of Tacoma to Port Orchard. Owner Steve Yadvish made the announcement at a press conference at Yachtfish Marine in Port Orchard, which he also owns. He has another Yachtfish boatyard on Lake Union in Seattle. Yadfish purchased the assets of Northcoast in 2003, and reopened the company. “Everything was in place: the yard, the molds, the reputation, and even the workforce,” he stated. “I knew we could build beautiful yachts there — the equivalent of a Rolls Royce on the water.” The firm’s latest vessel is a 125-foot motoryacht, which was one of the stars of the world-renowned, Ft. Lauderdale International Boat Show, which took place in late October. The asking price is reportedly $18 million. The boat was built in Tacoma and shipped to South Florida for the show. Northcoast’s experience includes the design and construction of megayachts, high tech maxi boats, and high performance Cover Story, page 4

Steve Yadvish, owner Northcoast Yachts

$1.50 Display until December 1st

Inside

Human Resources, pg 14

Special Reports:

Real Estate, pp 23-25

Technology & the Internet, pp 6-10

Financial, pp 28-29

Energy Savings, pp 30-31

Environment, pg 33 Automotive, pp 34-35

Editorial, pp 36-38 Port Orchard Chamber, pg 32 Home Builders Newsletter, pp 19-22


Liberty Bay Auto welcomes Ost back to sales team Liberty Bay Auto Center welcomes back Carol Ost to its sales team. When it comes to a vehicle purchase, Ost listens and will not just “sell” a vehicle. She is proof that old-fashioned integrity and excellence in customer service still exist.

Weedin earns Certified Risk Manager designation Dan Weedin has successfully completed the course work required to attain his Certified Risk Manager (CRM) designation from the National Society for Insurance Education & Research. The Certified Risk Manager program is a comprehensive and intense program training risk management professionals in the areas of identification, analysis, control, finance, and administration of risk. This is the second designation for the Society for Weedin. He also attained his Certified Insurance Counselor (CIC) designation in 1996. Weedin founded Toro Consulting, Inc. in 2005. His firm helps business owners to effectively manage, mitigate and respond to risk through planning, preparation, insurance, and leadership strategies. He is also an executive business coach, Master Mentor in the Alan Weiss global consulting community, and award-winning speaker. Contact Weedin at (360) 271-1592; dan@danweedin.com or visit www.DanWeedin.com.

The Doctors Clinic welcomes new CFO Brian Chandler has joined The Doctors Clinic as Chief Financial Officer. Chandler brings more than 25 years of experience in the healthcare industry to The Doctors Clinic. He most recently served eight years as Chief Financial Officer at Great Falls Clinic in Great Falls, Mont. “My goal at The Doctors Clinic is to be a part of a team that is focused on providing efficient and accessible medical care to the residents of Kitsap County,” Chandler said. Chandler is a graduate of University of North Texas, with a Master’s degree in accounting.

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KCU names new Poulsbo branch manager Kitsap Credit Union (KCU) recently named Michelle Hanson as the new manager of its Poulsbo branch, located on highway 305. Hanson has nearly 20 years of experience in the financial industry with the majority of that being in management, including having spent the previous year as assistant branch manager of the Credit Union’s Silverdale Branch. Regional Manager, Jerry Richardson, expressed his excitement with Hanson joining his team of seasoned managers by stating, “Michelle’s knowledge of the North Kitsap community, its people and their financial needs work well with her experience and make her the perfect fit for this position”. A former board member of the North Kitsap Fishline, Hanson is excited about her new role in the community and looks forward to “serving the thriving Poulsbo Community and being part of its great future.”

Liberty Bay Bank names Carrier assistant VP Jennifer Carrier came to Liberty Bay Bank in January of 2010 as operations supervisor. She was responsible for assisting the COO in managing daily operations as well as building new relationships. She was promoted to branch manager in January. As assistant vice president, branch manager, she chairs the marketing committee and coordinates the Bank’s marketing plan (press releases, photos, advertisements, etc.), manages the Bank’s website, and coordinates civic involvement, non-profit donations, and bank events. Carrier has been in banking for over 12 years, and has over 17 years of customer service experience. “We are lucky to have Jennifer on our team. Jennifer is a wonderful manager and leader, and she is committed to bringing our clients a higher level of customer service,” said Rick Darrow, president/CEO.


West Sound Workforce, Inc. certified as a Woman - Owned Small Business

Johnson joins The Doctors Clinic

Toro Lounge now open in Bremerton

West Sound Workforce, a local professional staffing company with offices in Gig Harbor and Poulsbo, has been certified as a Woman Owned Small Business/Economically Disadvantaged Woman owned Small Business by the National Women Business certifier of Women Business Enterprises. Over 700 public and private sector individuals participated in establishing the standards and procedures of this rigid certification review. The goal of the certification program is to streamline the certification process and increase the ability of women business owners to compete for contracts at a national level. “Certification provides a marketing opportunity for women business enterprises to participate in outreach programs,” says Julie Tappero, president of West Sound Workforce. “In addition, this program will enable us to develop relationships with larger companies and create opportunities for future partnerships with them and public and private companies.” “NWBOC seeks to increase the ability of women business owners to compete for corporate and government contracts,” says Janet Harris-Lange, president of NWBOC. West Sound Workforce can be reached at (253) 853-3633 or on the web at www.westsoundworkforce.com.

Wendie Johnson recently joined The Doctors Clinic as controller. Johnson previously was a CPA for a national public accounting firm, but wanted to follow her passion to play a role in the success of an individual healthcare organization. “The Doctors Clinic is an important player in the lives of Kitsap County residents, and I welcome the opportunity to participate in positioning the organization for its continued success well into the future,” said Johnson. “As a long standing resident of Kitsap County, it’s especially wonderful to be part of a local organization.” Johnson holds a Bachelor’s degree in business administration and a Master’s Certificate in legal studies.

Bremerton’s newest restaurant, the Toro Lounge, is now open at 315 Pacific Ave in Downtown Bremerton. The establishment features a tapas-style, small plates menu, featuring Northwest Cuisine. Additionally, Toro Lounge is the only place with 20 Northwest microbrews on tap, as well as having wine on tap. A full spirits bar is also available. Toro Lounge also features rotating art from local artists, participating in Downtown Bremerton’s First Friday Art Walks. The new Matador Room is also available for private parties and meetings. Reach Toro Lounge at (360) 813-1910, or visit www.ToroLounge.com or a www.Facebook.com/ToroLounge.

La Fleur Couture opens in Port Orchard La Fleur Couture, a women’s and children’s new, trade and consignment boutique opened in Port Orchard at 810 Bay Street. Hours are Tuesday through Saturday from 11 a.m. to 6 p.m. and on Sunday from noon to 5 p.m. Erica Rodriguez, owner, offers new and vintage items and encourages customers to “Come trade anytime, no appointments or fees for clothing, shoes, jewelry, accessories and more!”

Yo!G’s Frozen Yogurt opens in Poulsbo Yo!G’s Frozen Yogurt recently opened for business at 21505 Market Place, Suite 106 in Poulsbo between Payless Shoes and Game Stop in the Olhava complex. “I’ve always wanted to have a store like this,” says Sue George, owner. “It’s all self-serve. You choose the cup, select one or more flavors from the frozen yogurt machines and then select from over 40 toppings ranging from fresh strawberries, mango and blueberries to mini M&M’s, Oreo cookies, nuts, hot fudge, and etc.” Hours are Sunday through Thursday, 11 a.m. to 10 p.m. and 11 a.m. to 11 p.m. on Friday and Saturday. “Our goal was not only to provide the community with a healthy desert, while giving over a dozen young adults a job they can be proud of,  but contributing   to our community as well,” added George.

Element 7 Wellness Clinic moves to new location Dr. Holly Christy announced that as of Oct. 1, Element 7 Wellness clinic had moved to a larger facility, located at 1100 Madison Avenue North on Bainbridge Island. This new space will enable Dr. Christy to add a second doctor to its team, expand its IV therapy services, and provide a larger over-the-counter pharmacy. Additionally, more space will allow the clinic to begin developing a long-term vision of incorporating seven elements of health into one location. For more information, reach Element 7 Wellness clinic at (206) 780-0402

Kitsap Economic Development Alliance delivers business development professional services directly to clients: • Counseling and assistance for “selling to the government” • Custom research and reports • Coordination with key partners in: – Workforce development and training – Exporting – Financing – Strategic business planning – Permitting • One-on-one business counseling • Site selection assistance • Strategic recruitment of business to expand and relocate

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NORTHCOAST YACHTS from page 1 speedboats. Six renditions of its 85’ motoryacht were followed in 2006 by the first 87’ motoryacht. After making the decision to leave Tacoma, Yadvish said he considered several other locations — primarily, Anacortes, Port Townsend, and Bellingham. He had been working with Senator Derek Kilmer, who is also vice president of the Economic Development Board of Tacoma-Pierce County, to try and stay in Pierce County. But when it became clear in early 2009 that a suitable location wasn’t going to be found there, Kilmer suggested that Northcoast take a serious look at Port Orchard. “He told me the City had just elected an aggressively pro-business Mayor who had changed the City’s business climate into one that is extremely business-friendly,” explained Yadvish. “He connected me to Mayor Lary Coppola, and for two years we

worked closely together to both close the deal to buy Dockside, as well as the relocation of Northcoast Yachts.” Yadvish purchased Dockside Sales & Service on Port Orchard’s waterfront in 2009, with the idea of expanding the facility and the services offered, to include repairing and servicing yachts up to 100 feet long. Plans are underway to expand the facility’s main pier to accommodate an 85ton travel lift for lifting those huge megayachts out of the water. The big blue lift is already on site and just waiting for the actual pier construction to begin. “That expansion has required us to jump through a number of environmental and regulatory hoops,” stated Yadvish, and he credited the City of Port Orchard, and it’s Planning and Engineering departments, with making compliance with the myriad of

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Olympic College awarded three grants totaling $3.3 million Olympic College (OC) announced it has received three grants: two grants will provide training in industries expected to grow in Washington State and one grant will help firstgeneration and low-income students to pursue greater higher education levels needed for the 21st century workforce. The funding is expected to total $3.3 million over the time period of the grants. “Olympic College is honored to be selected to receive these grants. This funding will provide training to residents for in-demand jobs and prepare students to pursue higher levels of training and education that matter to today’s employers. In response to these economic times, we can offer additional opportunities for residents when they need them most,” said David Mitchell, president of Olympic College. The three grants consist of: • Air Washington – OC is sharing a total of $20 million in grant funding with regional community and technical colleges, representatives from the aerospace industry and centers of excellence, with Spokane Community College leading the proposal effort. The Air Washington grant is designed to provide training in aerospace industry sectors in the region. Olympic College’s portion is $2 million over three years to develop training in composites, electronics, and advanced manufacturing. All the members sharing in the grant will enhance efficiencies by sharing teaching materials and best practices. The grant award for Air Washington comes from the federal Trade Adjustment Assistance Community College and Career Training initiative. • Educational Opportunity Centers Program (TRIO program) – Olympic College received a grant from the Department of Education to start an educational opportunity center. The center will teach financial literacy skills and provide information on college admissions to adults who want to enter or continue in a higher education program. At least two-thirds of the participants will be low-income, first generation college students. To begin a pilot program, the college will receive $230,000 the first year. It is anticipated the grant will total $1.1 million over five years. • Governor’s Investment in Aerospace (GIA) – OC was awarded $102,000 as part of a $1 million Governor’s Investment in Aerospace (GIA) grant to develop fast turnover training in aerospace. Eleven of Washington’s two-year colleges are sharing in the grant funding. As a consortium, members will enhance efficiencies by sharing teaching materials and best practices. Allocated from Gov. Christine Gregoire’s discretionary Workforce Investment Act (WIA) funds last May, the grant is designed to assist state community and technical colleges in the development of new training in aerospace industry-identified areas.

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rules and regulations easier than expected. “The City — led by the Mayor — who got personally involved very early on, became our partner in dealing with all the required federal, state, and tribal agencies, and the regulatory requirements necessary to permit both the major expansion we’ve already done here, as well as the continued expansion on this site we will undertake early next year,” he added. “Instead of the typical, “Why it won’t work” mentality of most governments, I have really found Port Orchard’s “How to we make it happen, Can Do” attitude, extremely refreshing,” he said. Yadvish stated that the company is currently considering several locations to set up shop. “I don’t want to tip our hand just yet, but I will say we are negotiating with several people for potential sites. We definitely have a preferred site in mind, and have ranked all the others in order of preference,” he said. “We will announce the exact location when the deal closes. But make no mistake, Northcoast Yachts is committed to moving its operations to Port Orchard.”

Once a site is purchased and the facility constructed. Yadvish said he expects to begin hiring in late 2012 or early 2013. The operation should initially crew up to about 50 people, with jobs paying in the $20 per hour and up ranges. In past years, with more than one yacht under construction, the company has employed as many as 125 people. He also said the like Yachtfish, Northcoast is committed to buy as many of its supplies locally as it can, noting that Yachtfish is already doing business with a number of local firms. At full production of a single yacht, it is expected that the company will contribute about $7 million annually to the local economy. He finished the press conference saying, “I want to thank Mayor Lary Coppola for his leadership on this. If it hadn’t been for his hard work and personal determination to make this a reality, we might have been making this announcement in another City.” For more information on Northcoast Yachts, and to see pictures of yachts it’s built, visit www.northcoastyachts.com.

Screening Clinic for Care at Shriners Hospitals for Children The Kitsap Peninsula Shrine Club will hold a screening clinic at Harrison Medical Center, 2520 Cherry Avenue in Bremerton on Saturday, Nov. 5 from 9 a.m. to noon. The purpose of the clinic is to screen children who may be eligible for medical care for a variety of orthopaedic conditions, burns, spinal cord injuries, and cleft lip and palate, as well or muscular-skeletal disorders such as Spina Bifida, Legg-Parthes disease. More than 250 children from the Olympic and Kitsap Peninsulas have been treated over the years. Shriners Hospitals for Children is a health care system of 22 hospitals dedicated to improving the lives of children by providing pediatric specialty care, innovative research and outstanding medical education programs. Children up to age 18 with orthopaedic conditions, burns, spinal cord injuries, and cleft lip and palate are eligible for admission and receive all care in a family-centered environment, regardless of ability to pay. The Shriners International fraternity founded, and continues to operate this unique health care system. Former patients are encouraged to visit the Shriners at the clinic, as well as anyone interested in the health of young people. Call (360) 692-7274, or (800) 432-8200 for more information.

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Kitsap IS part of regional economic development action

A new evening Rotary Club in Silverdale? Hank Mann-Sykes is gathering names of interested people (who fit the Rotary criteria for membership) and other current Rotarians who might find an evening club more to their liking and better suited to their family, work and social schedules. Contact Mann-Sykes at (360) 5504551, or hanks@bigplanet.com for more information.

majority of well compensated, skilled primary jobs that created wealth in the region by selling and exporting goods and services to economies outside our region resulting in the importation receipt of payments — funds originating from outside our region. Kitsap companies impacting the regional economy include Watson Furniture, Paladin Data Systems, Advanced Technology Systems, SAFE Boats, Vigor Industrial and Leader International. Our 2005 Regional Economic Strategy (RES) — Prosperity Partnership 1.0 — was

adopted nearly three years before the onslaught of the Great Recession. A lot has changed in the global marketplace and with our national, regional and local economy since 2005; and, we are now in the process of reexamining and revising the Central Puget Sound’s RES. Work on the next iteration includes a closer analysis of occupational clusters within our key industries — including Maritime and Marine Manufacturing and Defense Contracting so vital to our regional economy, and Kitsap’s in particular. Our strategic analysis is focused on labor

m a r k e t s , occupational clusters, and education and training (workforce development) and employment centers outside of the urban core that are critical to serving our key industries and continuing to position the Central Puget Sound Region as an international destination for innovation, technology and advanced manufacturing.

November 2011 Kitsap Peninsula Business Journal•KPBJ.com 5

By John Powers, Executive Director Kitsap Economic Development Alliance The four counties of Kitsap, Pierce, King and Snohomish comprise the Central Puget Sound Economic Development District (EDD) — a regional economic district designated by the Economic Development Administration of the US Department of Commerce. EDDs across the country are charged with convening regional business and government leaders to design, develop and implement comprehensive, integrated five-year economic development strategies to advance job creation and commerce throughout the designated district. The Central Puget Sound EDD plays an indispensable role in the economic well being of the State of Washington as nearly two thirds of the State’s economic output emanates from our EDD; and, Kitsap County plays a vital role in the Central Puget Sound’s economy. It is with significant challenge and opportunity that nearly 20 business and government leaders from across Kitsap convened with their peers from Pierce, King and Snohomish at the offices of the Puget Sound Regional Council (PSRC) in October to participate in strategic planning sessions aimed at shaping the contours of the next generation of the EDD’s regional economic strategy (RES) — Prosperity Partnership 2.0. Additionally, these Kitsap leaders met one on one with PRSC staff and consultants to review Kitsap specific data to provide guidance on economic development plans for 2012 and beyond. Prosperity Partnership 1.0, adopted in 2005, was our region’s first comprehensive, integrated economic development strategy devised since the EDD and PSRC merged in 2003. Prosperity Partnership’s initial fiveyear regional economic strategy focused on better understanding and promoting some 15 key economic sector clusters (an industry with an output above national average output) identified within the region. Many of these clusters were well recognized, and included: Aerospace; IT; Trade & Logistics; Health Care; Maritime & Marine Manufacturing; Military & Defense; and Life Sciences & Bio-Technology. Additional new and rapidly emerging clusters, not yet fully understood, included: Interactive Digital Entertainment & Education; Clean Technologies; Sustainability Products & Processes; Specialty Food & Beverage Products; and, Internet Commerce. These key clusters in the region account for nearly 50 percent of the workforce and encompass the vast


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Companies must use tech savvy to reach the millennial generation By Rodika Tollefson A new generation of decision-makers and consumers is entering the market, and sharp businesses are paying attention. Born into the digital era and raised during prosperous times, these young adults are far different from their parents — though, of course, that’s been said of any new generation. Called the millennial or the digital natives generation, these young people are the “always connected” crowd — sleeping with their smart phones by their bed and living online. The millennials are generally considered to be those born after 1980 (also known as the Y generation), but many view that age group as only the first of two waves (the second wave being born to GenX parents vs. baby boomers). They have no brand loyalty, are the least religious generation in modern times and are on course to be the most educated, according to the Pew Research Center. For businesses hoping to get the attention of this up-and-coming force, it means looking at a new game plan. “(The millennial generation) is something we’ve been trying to wrap our arms around,” said Leah Olson, vice president of marketing at Kitsap Credit Union (KCU). Kitsap Credit Union has branches at some of the high schools and during a roundtable discussion, a student asked why the credit union doesn’t have a Facebook page. “It’s an expected way for them to interact… The technology is something they rely on,” Olson said. What makes the challenge even more interesting is that the millennials grew up with prosperity so they feel like they have many options, and they have a short attention span. “The millennials look beyond the price often times; they want to approve of a company. They’ll buzz about that to their friends,” said Anna Liotta, author of a new book called “Unlocking Generational CODES: What makes the generations tick and what ticks them OFF.” The CEO of Seattle-based Resultance, an award-winning speaker and a consultant, Liotta said the first wave of the millennials, raised with abundance, feel like they have a safety net in their parents, have no loyalty to a company and see their careers as highly portable — which means companies not only need to reconsider their marketing strategies, they also have to look at their recruitment in a new light. “They’re attracted to organizations that enhance their 360-degree thinking and leverage technology to do more with less,” she said.

Technological changes usually define all new generations and in the case of the millennials, that’s mobile phones and the Internet. “They’ve never not known cell phones or Internet. To them, it’s a third extension… It’s hard to reach them unless you’re doing something that’s multiplatform,” said Cathie ValentineMcKinney, director of communications for KPS Health Plans and principal at McKinney Communications, a media buyer for various clients. Where do the digital natives hang out? According to a Pew Research Center 2010 study, “Millennials: A Portrait of Generation Next,” 41 percent of them have no land line but 88 percent text; 75 percent have a social networking profile; 20 percent posted a video of themselves online and 62 percent use wireless Internet away from home. Not surprisingly, the percentages are much higher when compared to the boomers and Gen-X-ers (only 50 percent of Gen-X and 30 percent of boomers have social networking profiles, for example). “Even smaller companies now are being aware of how important it is to market themselves in multiple avenues… It’s all about the online presence and how you show up compared to your competitors,” said Lanette Kuklinski, owner of Bremerton-based Lanski Marketing, whose services include serving as social media manager. She said having a website is no longer enough — companies need to utilize search engine marketing techniques (which go beyond optimizing the website with keywords), keep their website content fresh and interact with their customers. “That’s where things like social media, QR codes and mobile come in,” she said. “Interaction, that’s exactly where the key is. You need to interact not only with current clients but also with potential clients.” To get her clients started with social media, she creates a checklist of topics pertaining to their industry and guidelines on what to post about. “It’s not just about throwing discounts out there because people are numb to that. We want to intrigue them with other interesting things,” she said. “…It’s really not just about the online presence but about relationships.” One of the things that makes this generation different is their immunity to hype, Valentine-McKinney said. “They don’t trust marketing; you have to speak honestly to them. Because they’re such a social group, they believe more what their friends tell them than anyone else. They like to have a two-way conversation,” she said. “…Social media has become huge and you have to figure out how to jump in.

This generation is not willing to wait — when they want something, they want it now and you have to give them a seamless brand experience.” Based on the feedback it received from its high school members, KCU has decided to implement social media and has been working for the past six months on a social media plan. The process includes gathering research, defining the purpose of the social media use and developing a voice, and the goal is to launch a Facebook page and other platforms. “If you’re using it purely for advertising, that’s not what those using Facebook look for. It needs to be conversational,” Olson said. “To develop the voice, you need to know who you are as an organization — for us that’s easy because we have a set of mission and vision statements, values and ethics.” The credit union has also changed the way it uses YouTube. Its original purpose was largely for internal communication but it is now being incorporated into the social media strategy. “There are so many good choices, it can be overwhelming,” Olson said. “We’re going to start slowly.” Unlike a tight marketing or PR campaign, or print advertising that doesn’t talk back, technology creates one more layer of complexity for companies: It takes some of the controls away and gives them to the consumers. Some corporations have successfully embraced that — Ford’s campaign to introduce its new Fiesta car a few years ago and the Old Spice “The Man Your Man Could Smell Like” YouTube video are two examples — but many others are struggling with the idea.

“A lot of companies are very nervous about taking off the control factor from their brand,” Liotta said. “Control is power and allowing to give up the control is tough, especially for the baby boomers.” Some companies are trying to be innovative by looking past the social media, knowing that the millennials are always ready for the next idea. Tech geeks like John Bower of Poulsbo-based eAcceleration think that next idea is mobile apps. Earlier this year, his company approached the Kitsap BlueJackets with the proposal of launching an app, and it has already gained some momentum despite a late launch during the last season and little advertising. Bower points out that his teenage sons — part of the second wave of millennials — “got” the app idea long before he did. They adopted the technology first via their iPod Touch devices, and by the time iPhone was available through Verizon, Bower jumped all over it. “In a few years, we’ll be hearing a lot, ‘Your business doesn’t have an app? You’re behind the times,’” he said. “…It’s a great opportunity to reach more people.” Whatever the next platform becomes all the rage for the digital natives, companies are realizing they need to learn to speak their language — especially since the first wave of this generation is about as big in numbers as the baby boomers. “It’s difficult to reach them, especially if you’re not a millennial talking to a millennial, and most business owners or upper managers are not millennials,” ValentineMcKinney said. “…They’re a fun group to try to figure out but as long as you’re authentic and engaging, you’ll find them.”


Social Media “Social media goes way beyond just marketing. When you integrate social media into your business, your organization grows and you save money. Plus, you regain your time. I show you how.” -Frank J. Kenny

Frank J. Kenny Frank J. Kenny is an author and thought leader on small business and business association growth strategies, especially through new media. He has been featured in a number of media outlets including the American Chamber of Commerce Executive’s (ACCE) Chamber Executive magazine and the Puget Sound Business Journal. He created and managed the very successful “Bigfoot” – The Northwest’s Social Media for Business Conference. Frank is on the faculty of the Institute for Organization Management (IOM) and has instructed on social media marketing through the American Chamber of Commerce Executives (ACCE) and the Western Association of Chamber Executives (W.A.C.E.). http://FrankJKenny.com.

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Date: Thursday November 17th, 2011 9am -12pm Prestigious venue: Islandwood (http://islandwood.org/) 4450 Blakely Ave. NE, Bainbridge Island Register online at: http://BainbridgeChamber.com Limited seating; $29 for Chamber members (any chamber)/$39 non-members Come for networking and bring your business cards!

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November 2011 Kitsap Peninsula Business Journal•KPBJ.com 7

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KITSAP PEEPS, THEY HAVE THE APPS FOR YOU!

Local entities and entrepreneurs are embracing the mobile app market

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By Rodika Tollefson As a teacher at South Kitsap High School, Sean Duttry can testify first-hand how prolific smart phones have become even among the youngest generation — he estimates that as many as half the students in his business technology classes own iPhones and Androids. As the owner of Gig Harbor-based Emblematic Web Designs, Duttry also knows what that means to entrepreneurs like him: Mobile apps are the hot new market. “It’s an exciting time and we’re right in the middle of it… I’m confident apps will change the way we use the Internet and technology. We’re not there yet but it will happen,” he said. Duttry is one of many local entrepreneurs and business owners who are not waiting for that day to arrive and are exploring various ways to capitalize on the popularity of the market — which has 500,000 apps (and growing rapidly) for the iPhone alone. Working together with his graphic designer wife, Cathy (also a SKHS teacher), he has created three apps as a way of testing the waters. One of them is Golf Washington, which has been endorsed by the Pacific Northwest Golf Association. The free app has features such as a list of all golf ranges in the state — which the Duttrys had to research and enter into a database, one by one — along with discounts, news and other information. It has a built-in GPS locator and the capability for other features such as enhanced listings. “We were going to sell the app but shifted to free after more research,” said Duttry, a longtime golfer. “Making money is

based on having a large number of users so the goal is to make it popular first. We’re thinking of ideas of how it can make money down the road.” He sees the free app market following suit after Facebook and Twitter — offering a free product first, then coming up with a revenue model. “I think advertising, in two to three years, will no longer be in magazine or on websites. I think it will be in apps,” he said. One of his other apps, GoGo Gig Harbor, does charge $1.99 but it’s not a moneymaker either. He created it as a way of helping his daughter’s Peninsula High School marching band as well as other local school organizations. Each app buyer can “check in” to a group from a list, and Duttry donates $1 to that group (another 60 cents goes to Apple). “It’s like a Yellow Pages with a GPS,” he said of the app. “…An app is like a search

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engine on steroids, that’s why they are so popular.” Duttry thinks the idea of apps is still so new, that the question of costeffectiveness hasn’t been addressed yet. And that’s true when it comes to companies looking to shift some of its business to digital, mobile or otherwise. One new trend, for example, is for chambers of commerce to replace their annual printed directories with online and mobile products. Going digital is less expensive compared to printed products, but the printed directories are supported by display ads. Locally, the Bremerton Chamber of Commerce is leading the charge for going paperless including mobile, and others are exploring the idea. The chamber’s newly released iPhone app, called Bremerton, is an attractively designed directory with categories that range from attractions and education to real estate and shopping, with a social networking function built-in. The basic listing, which chamber members receive for free (and nonmembers can buy), connects users to Google Maps and the company’s website, and gives them the option to dial the business straight from the app. Future enhanced options include video and other possibilities. The Android version was also due out by November. “We wanted to go completely green and add value to membership,” Executive Director Mike Strube said of the move, which had been in the works for several months. Strube said since advertising paid for the 10,000 printed directories, the chamber was hoping app ads will offset the cost of the mobile app development as well. The app, he said, also plays into the chamber’s push toward more active online communication, including a regularly updated website that has new, expanded features. September also marked the launch of Kitsap Credit Union’s mobile banking app. Employees have already taken it for a test drive, and after it became publicly available on Sept. 1, the Android app had received 75,000 “visits” from users within the first month, and the iPhone one received 43,000. Leah Olson, vice president of marketing, said the credit union has been watching the mobile industry for some time. One study by Forrester research showed that 68 percent of smart phone owners are accessing financial services regularly, she said. “We want to provide our members as much convenience as we can, and that’s

another access point,” she said. Interestingly enough, she noted, a member survey conducted by the credit union this past spring showed that the most interest in the mobile market was in the 36- to 55-year-old category, not among the younger customers, as is often believed. Once the app is advertised, she expects the number of mobile app users to grow, including new members who may not have considered Kitsap Credit Union in the past. “From a business perspective, for us it can definitely be a cost-effective way of providing services to members,” she said. For the Kitsap BlueJackets, the purpose of an app is also to extend the experience for the “customers,” as well as attract new ones. “We’d like to expand our fan base in the younger group. Those that come really do like the atmosphere,” said Rick Smith, BlueJackets general manager. The app includes features such as the team roster, game schedule, news, promotions and standings. Although there were only three games left this past season by the time the app was approved by Apple, it already had 500 downloads. And the only advertising the team had done was through a few social media posts and flyers with QR codes handed out at the three games. Those who have downloaded the free app will get notified about an update via the market once the 2012 version is released with the new season’s information and additional functionality. An Android app is also on the way. “The hope was to get the first version out into as many hands as possible and continue the momentum, then have the update automatically available,” said John Bower, director of sales and support at eAcceleration, a Poulsbo company that approached the baseball team with the app idea. Bower said the app has a dual purpose. One is to engage the fans, especially the younger ones, and the other is to give sponsors additional incentives. The app includes sponsor ads, which link to the company website or phone number for dialing. “We feel it has tremendous potential and we’re just scratching the surface,” he said. Bower’s company is known for its StopSign computer protection software, but it has also expanded into social media, gaming and mobile applications. He believes mobile computing is following the pattern of the Internet. While eight to 10 years ago, websites were all the buzz and many companies didn’t have one yet, now a website is a given. “We see the same adoption for apps moving forward,” he said. “And it will be individual apps, not just business. It helps connect the social media too and it can all be connected via a mobile app.”


Baby boomer Realtor finds creative ways to reach Gen-Y clients By Rodika Tollefson Poulsbo and Bainbridge Island real estate broker Penny McLaughlin is known for her creative marketing and customer service. She has a unique logo with bright colors and her face on a penny, and matching moving trucks she loans out to any client. Instead of raises, she gifts her team VW “bugs” painted like baseballs and sporting the company name, Penny’s Team Real Estate. And she keeps an extensive list of all her clients who want to get referrals for their business. Her company’s latest marketing idea — a YouTube video with a rap song called “I Know Penny” — was launched less than two months ago and has already brought in customers along with nearly 8,000 views and comments like “Wanna move to Poulsbo” and “Makes me want to re-locate to Puget Sound from Arizona.” In 3 minutes, 46 seconds, the catchy beat covers everything from McLaughlin’s 25 years of experience and various Kitsap references, to local basics like the ferries, boats, fishing and coffee — as well as ideas for things to do, including some regional attractions like the Olympic Peninsula and San Juan Islands. “Y’all come explore the Pacific Northwest. Five cities, pretty, open spaces, gorgeous,” actor-singer-comedian Zach Selwyn raps in the video. “Enormous potential to live your dreams and the crew that’s gonna help you — Penny’s Team.” The video, which was filmed in only one day, includes several of real estate team dancing along, including McLaughlin herself. “I don’t like boxes. We do things that are different,” McLaughlin said. The idea to do something different in this case was inspired by the book “Y-Size Your Business: How Gen-Y Employees Can Save You Money and Grow Your Business” by Jason Dorsey. McLaughlin had been to a presentation by Dorsey, a Gen-Y member

Realtor Penny McLaughlin with Zack Selwyn himself, at a national conference. “They will deal with the Baby Boomer age, which I am. It’s like dealing with their grandparents, and they trust grandparents,” McLaughlin said. McLaughlin’s team meets weekly to discuss various things. They try to brainstorm 10-15 ideas, and some of them catch on. When managing broker Sean Thompson suggested taking a different spin with a video that would be very different from their usual clips, the team jumped all over it. Of course, it helped that Thompson’s brother-in-law — Zach Selwyn — did that kind of work for a living. “We weren’t targeting specifically the Y generation, but we were targeting younger people buying homes,” Thompson said. “… We figured we needed to introduce people to Kitsap County and make it fun… We didn’t know what we were going to do, we just wanted it to be entertaining for 20-yearolds.” Penny’s Team brought Selwyn down from his home base in Los Angeles and fed him various local references so he could write the lyrics. Selwyn, who visits family in the area once or twice a year, then went

Washington State Attorney General Rob McKenna recently warned consumers about a text-message trap to capture financial information and drain credit card and bank accounts. Such text message scams are called “smishing.” “If you don’t wish to be smished, ignore text messages that look like they’re coming from your bank or credit card,” McKenna said. “Flip over your credit or ATM card and call the number on the back. If there’s a problem with your account, that’s the best way to find out.” Consumers began contacting the Attorney General’s Consumer Protection Division early this week complaining about calls to their cell phones from those posing as Wells Fargo employees. An automated voice suggested that the customer’s account has been breached and directed them to “press one” for assistance. They were then connected to a person who asks for sensitive account information.

Many of the calls came to those who don’t even have Wells Fargo accounts. As the week progressed, the scam morphed to text messages from those posing as representing Bank of America, Chase, Citibank and Capital One. “Phishing” scams trick consumers into turning over account numbers, PINs, credit card security codes, usernames, passwords and other sensitive information. “Smishing” is a similar scam launched over SMS (Short Message Service) messages — better known as text messages. Scammers have long phished by phone and email. The text scam is a somewhat new variation. The Attorney General’s Office recommends that consumers never respond to any message requesting account or personal information. Instead, contact the institution using a phone number from a statement or from your bank or credit card company’s official Web site.

McLaughlin has been in real estate for nearly 25 years and says she has always tried to stay ahead of the curve. As one example, the company dedicates two employees who spend a total of 40 hours a week updating the websites with listings and keeping up with social media like Twitter and Facebook. “If everyone goes right, I like to go left,” McLaughlin said. She said the reason she wanted to target the Y generation in her marketing is because this is the demographic buying the starter homes — which in turn allows starter home owners to move up to the midmarket, and the midmarket to move up to the more expensive homes. Asked whether her team had a plan for what to do next or how to beat the “I Know Penny” rap song, she said, “We’re going to ask the Y generation what’s next. Once we attract them, we���re going to ask them, ‘What can we do to attract more people like you?’” McLaughlin, who views herself as a risktaker, said it didn’t take long for her to be convinced to put on her dance moves for the camera, but she did draw the line at one suggestion: She was not going to paddle in a canoe in the middle of Liberty Bay. Still, she doesn’t discount the idea of another creative gig in the future, “as soon as they convince me to get back on camera.” “You have to do what it takes,” she said. “I’m embracing change.”

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Don’t get “smished”

around Kitsap Peninsula to shoot the footage with his brother, Jesse, all in one day. For him, it was business as usual — he’s worked on viral campaigns for Xbox, Netgear and Discovery Channel, has hosted television shows and acted in some, among other things. “You’ll never be up Liberty Bay without a paddle and Penny’s gonna help you win this real estate battle,” was one of the lines he came up with. The video went viral largely on its own, with people forwarding it to each other and posting the link on Facebook. Thompson said their next move would be to send it to their email list once they complete their database update. The video is also posted on both of the company’s websites, talktopenny.com and pennysteam.com. “There’s no knowing what marketing idea is the best, but this one has already paid off,” he said. “…We already have a lot of ways of pointing people to our website but we want to keep them there.”


10 Kitsap Peninsula Business Journal•KPBJ.com November 2011

“Friends of Facebook” take social networking off-line By Rodika Tollefson Like many small business owners, Bryan Garrett tries to take advantage of as many networking opportunities as possible. Which is why the owner of Bremerton-based Kitsap Errand Runner has been building up his Facebook friends list to nearly 700 so far. But like many other service-oriented providers, Garrett wants to build relationships that go beyond the surface. “As a business owner, I need to meet as many people as I can. I have all these friends on Facebook but I don’t know them,” he said. “…As a service business, people need to meet me to build trust. I know this is a marathon, not a sprint.” So when Garrett was invited to join Friends of Facebook — a group of people connected through social media who get together “offline” every week — he jumped at the chance. The group, which has been meeting in Silverdale for several months, has as many as 20 or more people in attendance, and new “friends” drop in every week. “It’s getting from behind the electronics and sitting behind a monitor back to meeting people (in person),” Garrett said, adding that he already got one long-term client through the group, and has been referring people to other business owners he knows. “It’s where relationships are made and friends are met, and it builds a better community.” The idea for the Friends of Facebook meetups belongs to Mary West, a seasoned networker who has been facilitating Master Mind business networking sessions in Poulsbo for several years and recently launched a new business, The Mary West Network. She has already been connecting business owners with each other as part of her work and passion, but saw a need for more personal interaction in the world of social networking. “I’m on Facebook a lot. People have hundreds and hundreds of ‘friends’ and I thought, why not meet some of them in person,” said West, who herself has a list of more than 1,000 Facebook connections. She started the weekly meetups with three or four people in Silverdale and since then the

idea grew so popular, she started a second one in Gig Harbor a few months later (meeting weekly at Harbor Kitchen). In September, a third group was launched in Bremerton (meeting 1:30-2:30 p.m. Thursdays at Fraiche Cup). She started the weekly meetups with three or four people in Silverdale and since then the idea grew so popular, in midSeptember she was in the process of starting one in Bremerton. A second meetup, though much smaller, has already been in place for a while in Gig Harbor, meeting weekly at Harbor Kitchen downtown. The Silverdale meetups are currently 1011 a.m. every Tuesday at Roundtable Pizza, and West co-facilitates them with Amber

Dinah. She said the facilitators’ role is mostly to keep the meeting flowing, but she also comes up with new questions every week to help them get to know each other better. The meetings are free, thou gh participants pitch in to cover the room rental fee. “It’s a very casual group. It’s fun to often hear people come in and say, ‘It’s so nice to meet you in person,’” she said. The questions are not always businessoriented — in fact, the meetups are not just for business owners but for anybody interested — and focus on things like what people like to do outside work, why they got into their line of busi ness and so on. The participants also get the chance to go around

the table and talk about their businesses, and even their challenges if they wish. “We’ve been getting to know each other really well, and it seems to come from the heart,” West said. “We’re building deep relationships.” Dinah, a Belfair-area resident who owns the consulting business Audible Advice, said the meetups have also served as inform al sounding boards for some people trying to solve a weekly challenge. “The best feedback we get is that we’re doing it because we care about networking; this is free and there’s no initiation fee,” she said. “Putting a face to a business does wonders in the community.”

A few ideas for your tech tool kit If you keep up with technology to be more productive, you probably already know about tools like GoogleDocs and Microsoft OfficeLive. If you’re due for some “upgrades” in your toolbox, here are a few more ideas for free online tools that could make your job a little easier. Prezi.com: Need to make a presentation but don’t own PowerPoint? You can create a presentation at prezi.com for free (up to 100 MB storage) then either share it online or download to share offline. The free version does have drawbacks — a Prezi logo gets attached to it and it’s publicly available — but you can upgrade to $59 per year and use your own logo, as well as make your presentations private. Throw in a little more money, and you can also get a desktop version for creating content offline. One other cool option: You can work on the same presentation together, up to 10 people in real time, via Prezi Meeting. TechSmith.com: Use Jing, available for a free download, to capture screenshots — handy if you’re trying to create a virtual, stepby-step tutorial or a similar presentation. Jing does both screen snapshots and videos, and has the capability of sharing them instantly through the web, email etc. Go “pro” for under $15 a year to get a few extra features.

Screenr.com: Another free screencasting tool, which can play on Macs, PCs and some mobile devices. Screenr doesn’t require a software download to the computer. The business version upgrade, which allows for private screencasting and includes tech support, starts at $19 a month and goes all the way up to $289 for heavy-duty users. Scribd.com: Be your own online publisher. Scribd is a platform used by anyone from newspapers to authors to publish PDF, Word or PowerPoint documents that are discoverable by search engines and easily shared on various platforms. Many aspects of scribd are free (but a subscription is required to read documents that have been archived after a while), and authors can also sell their content through the site. Slideshare: Another popular platform for sharing, mostly presentations and PDFs but also videos and webinars. Paid upgrade options offer ad-free space and private sharing, among other things. Dropbox.com: An easy way to share documents with others, as well as seamlessly sync your account (and documents) between a computer and say, a tablet. No more need to email attachments to yourself! Zamzar.com: Ever get frustrated when

you get a file you can’t open? Try zamzar.com. You can upload a file up to 100 MB for free (or use a URL), select the format you want to convert to (an extensive list of options ranges from documents and images to music files), and enter your email to receive the link to the finished file. If you need more bandwidth or want priority conversion for faster processing time, you can sign up for one of several upgrade options.

Local residents co-author “Politics of the Possible” Hansville community leader Mary Ellen McCaffree, co-founder and treasurer of the Great Peninsula Conservancy and Anne McNamee Corbett, Kitsap Land Trust cofounder and founding editor of Silverdale’s Central Kitsap Reporter, have teamed to write “Politics of the Possible.” The book retraces McCaffree’s path inside the gears of governing during Washington State’s most productive decade. “Politics of the Possible” charts the overhaul of the state during the 1960’s, culminating in a stunning 1970 special legislative session that capped a sweeping program of progressive, bi-partisan reforms. The story unfolds through the eyes of McCaffree, a mother of five who entered politics to champion her children’s overcrowded, under-funded schools. In her four terms as a state legislator from Seattle, she was central to the ‘Evans Era’ leadership team, was an architect and author of a major program of tax reform, and championed nationally groundbreaking legislation in education and environmental protections. The authors wrote out of concern that newer American citizens don’t understand the process of our governing bodies well enough to play their part in assuring our government works for us. “Politics of the Possible” provides a real-world model of citizen-driven success. For more information visit ww.politicsofthepossible.com.


Petersen Farm campaign tops $355,000 Graf-Hoke, who volunteered at the farm event, said, “Petersen Farm and nearby Clear Creek Trail are two of the reasons visitors from around Puget Sound come to our area and support local businesses with their tourism dollars.” Other major donors to the campaign include the Estate of Gerald Petersen ($202,500), Bill and Bee Mahan Charitable Trust ($43,000), an anonymous local Kitsap family ($20,000), Gary and Marilyn Cunningham ($10,000) and Jerry and Nancy Reid ($10,000). Many other people from around the region have made

contributions ranging from $25 to $5,000. Visitors to Petersen Farm Fall Fair contributed more than $2,500 to help save the farm. The remaining $60,000 must be raised by Nov. 15, to be eligible for a matching grant from USDA Farm and Ranchland Protection Program to complete the project. Donations to the Campaign to Save Petersen Farm may be made to Great Peninsula Conservancy, with “Petersen Farm Campaign” noted in the memo line, and mailed to: Great Peninsula

Conservancy, 3721 Kitsap Way, Suite 5, Bremerton, WA 98312. Contributions of $500 or more will be recognized on a plaque at Petersen Farm. Gifts are tax deductible to the full extent allowed by law. For more information, call (360) 3733500 email info@greatpeninsula.org or go to www.greatpeninsula.org.

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Smith receives Spirit of Washington CASH Award

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Alan Smith, owner of Mr. Honey Do Now Repair Service in Silverdale, has won the Washington Community for Self Help (C.A.S.H.) "Spirit of CASH Award". The announcement was made at the CASH second annual client showcase 'C.A.S.H. Works – Supporting Kitsap Entrepreneurs!' held on October 20, in Bremerton. More than fifty active CASH fellow business owners selected Smith for his inspiration and willingness to help others," said Stuart Walton who directs the program in Kitsap. Alan Newberg who was instrumental in bringing the CASH program to Kitsap in 2000 made the award. Smith began his CASH training two years ago and graduated in a class of military veterans. He has developed his successful home repair business and made significant contributions to the program, as a coach, mentor and volunteer, Walton said.

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With a recent pledge of $25,000 from the port of Silverdale, the campaign to save historic Petersen Farm in Silverdale has raised $355,000 toward its community goal of $415,000. When the farm’s longtime owner, Gerald Petersen, died in 2009, the estate looked for a way to achieve Petersen’s goal of keeping the property intact as a working farm. Great Peninsula Conservancy offered an innovative legal tool, known as a conservation easement, to ensure the land remains in agriculture. Given the 167-acre property’s high value, buying the land outright is not an option for the Conservancy. With the conservation easement, the Conservancy purchases (and extinguishes) development rights from the land and leaves the land available for sale to a farmer at a much-reduced cost. This keeps the farm in private ownership, allowing for the production of food for the community and a place for children to enjoy hayrides and learn about farming. In making its pledge, the port of Silverdale recognized several public benefits of the farm conservation project that advance the port’s mission. Preserving a large, productive working farm located within the port’s district helps maintain small-farm economic enterprises in the area. “Economic development activity of this type is central to the port’s mission,” said port administrator Theresa Haaland. State law also recognizes promotion of tourism as a port function. Annual Petersen Farm Fall Fairs, like the one on Sept. 18 that attracted 950 people, draw visitors to enjoy the region’s rural heritage. The project complements the efforts of another local economic development agency, Kitsap Peninsula Visitor and Convention Bureau, which attracts visitors to the region by promoting the Kitsap Peninsula as the “natural side of Puget Sound.” KPVCB Executive Director Patricia


Congratulations — Class of 2011 Drawn from a pool of more than 100 entries the Kitsap Peninsula Business Journal would like to introduce you to the “40 Under Forty” Class of 2011. Our extremely discerning panel of judges selected 40 of the Kitsap Peninsula’s most outstanding individuals based on their career success, community involvement and commitment to making a difference. These young men and women represent our next generation of business community leaders who will help influence, direct and inspire the future of the Kitsap Peninsula and its growth. From all the materials the judges have reviewed, it is safe to say our future is in good hands!

Ray Allwine

Stephanie Andrews

Keith Armstrong

Corinne Beach

Schuyler Beaver

Kitchen Manager Essence of Thymes Catering

Planner City of Port Orchard

Equipment Specialist Defense Logistics Agency

Outreach Coordinator Puget Sound Naval Shipyard

Nuclear Engineer Puget Sound Naval Shipyard

Todd Best

Stephanie Brush

12 Kitsap Peninsula Business Journal•KPBJ.com November 2011

Owner Best Properties

Ryan Chapman

Teacher Owner and Head Coach / Project Engineer Just for Kicks / Discovery Montessori B.A.S.E. Training / Puget Sound Naval Shipyard

Aimee McWhorter-Compton

Sean Compton

Owner Social Media Service

Executive Director Kitsap Humane Society

Julie Cottle

Amber Dinh

Christian Gainsbrugh

Timothy Garrison

Dr. Amber Gravett

Branch Manager Pacific Northwest Title

Owner Audible Advice

President Big Step Consulting

Principal Poulsbo Elementary School

Former Executive Director of Organizational Involvement at Harrison Medical Center

Adam Green

Shaun Guerrero

Jennifer Haro

Heather Dawn Henrichsen

Joshua Hinman

EV Specialist Advantage Nissan

Loan Officer The Legacy Group

Associate Planner City of Port Orchard

Office Administrator Parker Financial

Executive Director West Sound Youth for Christ


Jennifer Horne

Gus Housen

Darcy Jenne

David Johns

Dr. Sean Joseph

Owner Seaport Salon and Day Spa

Owner Gordon Sound

Deputy Public Affairs Officer Puget Sound Naval Shipyard

Administrator Canterbury Manor

Owner and CEO Integrated Chiropractic

Lene Langdon

Shane McGraw

Edward Moydell

Gina Omalanz

Abby Ouimet

Leadership Development Programs Manager Puget Sound Naval Shipyard

Loan Officer The Legacy Group

Executive Director The Bloedel Reserve

Owner Essence of Thymes Catering

Director of Public Relations and Development Kitsap Humane Society

Amber Page

Jesse Palmer

Veronica Rhodes

Mortgage Banker Eagle Home Mortgage

Capital Campaign and Grants Director YMCA of Pierce and Kitsap Counties

Shift Manager Suquamish Clearwater Casino

Nicole Robbins

Daniel Roso

Public Health Director Kingston Crossing Wellness Clinic

Vice President of Sales and Marketing TravelChair Co.

Janet Silcott

Sasha Wetzsteon

Katherine Wright

Jennifer Yeaman

Assistant V.P. and Marketing Officer Kitsap Bank

Manager Latte On Your Way

Catering and Sales Manager The INN at Gig Harbor

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14 Kitsap Peninsula Business Journal•KPBJ.com November 2011

Dealing with employees who are caregivers at home By Julie Tappero, President West Sound Workforce Last year, my longest tenured employee’s father passed away, and she suddenly found herself becoming the caregiver for her elderly mother as well as her elderly mother-in-law. These responsibilities were so demanding that she was forced to resign. During that same time period, another employee became the caregiver for her elderly father-in-law, and also had to resign due to the strenuous demands this placed on her. I now have a third employee struggling in a similar situation with her own ailing father-in-law. Clearly, the working caregiver is becoming the norm in today’s workplace! As employers, we are accustomed to hiring people who have children, and are used to the issues that arise for parents, as well as the support systems they require at work to address those issues. Now, however, the baby boom generation is stepping up to take care of their aging parents and relatives, and this is new territory for many employers. Frequently, the support system to help them is expensive and lean, or even nonexistent. That will need to change, if companies are to successfully navigate this new paradigm shift. Who is the typical working caregiver? In June 2011, MetLife issued a study that showed that: • 66 percent are female • 71 percent are 50-55 years old • 77 percent of them are white • 57 percent of them work • Almost 10 million adult children over 50 years of age are caring for an elderly parent • 25 percent of adults provide caregiving for a parent • The average length of caregiving is almost four and a half years. As our workforce ages, it is clear that caregivers are likely to be found in our workplaces. Why is this subject of concern to us as employers or managers? There are several reasons, both from a legal standpoint and a business perspective. While caregivers themselves are not a protected class, they may fall into one depending on the situation and how they are treated. Caregivers face many pressures which impact them on many levels. Their work, and the business they work for, are

often not immune from the impacts. performance issues, such as frequent, If your business has 50 or more unexpected absences. This can obviously employees, you fall under the Family have an impact on other staff members, Medical Leave Act, which requires you to who may feel resentful or angry about provide up to twelve weeks of unpaid jobdealing with such disruptions. Your protected leave to employees. This includes employees may not realize that coworkers leave for caring for a parent with a serious and subordinates with caregiving health condition. Even if you are smaller responsibilities have the right to be treated than 50 employees, there are still legal equally. Allowing staff to make remarks or considerations. expressions of frustration about a In 2007, the Equal Employment caregiving employee’s situation can open Opportunity Commission (EEOC) issued you up to receiving a hostile work guidance on how businesses should treat environment claim. To avoid this, educate caregivers in order to avoid unlawful We’ve all heard the your workforce about disparate impact which might fall term sandwich employees’ rights and under protected classes as defined generation. Baby foster a compassionate under Title VII. These best practices boomers today are environment. include some of the following: While the EEOC has paying for their Do not make assumptions: set guidelines in their children’s college Statistics tell us that women are more document “Enforcement education while likely to be caregivers. This does not financially coping with Guidance: Unlawful mean you should assume that a Disparate Treatment of their aging parents. woman who has caregiving Workers with Caregiving responsibilities would not want to take on a Responsibilities,” they make it clear that position at work with additional duties, or these are guidelines and not rules. Leslie longer hours, because this could qualify as Silverman, vice chair of the EEOC has sex discrimination. A case for sex made it clear that employers can still expect discrimination could also be made if a man their caregiving employees to perform at shoulders the responsibilities of being a the same level. caregiver, and is treated with more respect Studies have shown that caregiving takes than a female employee in the same a huge toll on the caregivers themselves. In situation. 2010 the University of Pittsburgh studied Provide flexibility: To the extent that it 17,000 employees and found that those is possible, you should provide flexible work who were caregivers reported poorer health arrangements for employees with caregiving and more chronic disease. Their health care responsibilities. It’s always expensive to lose costs were 8 percent higher than nonan experienced employee, and to have to caregivers. It isn’t surprising that working recruit and train a new one. In some caregivers report that they lack sleep, are instances, you can prevent this from depressed and have health issues due to happening by being flexible and creative. their stress and caregiving responsibilities. There are a number of accommodations you The MetLife study states that the resulting can offer, including offering the option to workday interruptions, unpaid leave, telecommute, to work different hours, or to absenteeism, and other issues cost job share with another employee. Larger businesses $34 billion a year. companies, like Verizon and Freddie Mac, Employees also face mounting financial offer benefits such as free eldercare issues from their caregiving responsibilities. consultants, access to subsidized aides, backWe’ve all heard the term sandwich up care, and seminars on eldercare issues. generation. Baby boomers today are paying This is good business sense, as, according to for their children’s college education while the AARP, every dollar companies spend on financially coping with their aging parents. eldercare benefits creates a return between The MetLife study estimates that lost $3 and $14! wages, pensions and Social Security Educate the workforce: When an benefits for caregivers amount to $3 trillion. employee is acting as a caregiver, it is not at The impact on the workplace can only be all uncommon for this to result in work imagined as these workers face increasing

financial burdens during an economic recession. Boomers were already expected to stay in their jobs longer. Caregivers who are sacrificing wages and retirement income may be forced to remain in the workforce for an even longer period of time. In the “old days” there was a wife at home who could take care of the ailing parents. In the “old days” our parents didn’t tend to live into their 90s. But today, we’re in a dual-income society with modern medicine enabling people to live much longer. It’s a reality for millions of working caregivers in the United States. And it’s going to be a reality, at some point, for 25 percent of your adult workforce. The impacts and expenses to our businesses are undeniable, and it’s just good business sense to be proactive in our response. Providing basic eldercare benefits does not have to be an onerous or expensive task for your company, and it can be a real godsend for employees struggling with this thorny issue. It can be as simple as compiling a list of local and useful resources for caregivers, and fostering a caring and flexible work environment for them. As employers and managers, it is best for us to prepare for these issues in advance, not only to minimize the impact upon our businesses, but also to ensure that the employees we value have a support system in place in the event that they are shouldered with the hardships of caregiving. (Editor’s Note: Julie Tappero is the President and owner of West Sound Workforce, a professional staffing and recruiting company based in Poulsbo and Gig Harbor. She can be reached at julie@westsoundworkforce.com. View her LinkedIn profile at www.linkedin.com/in/jtappero. The recommendations and opinions provided are based on general human resource management fundamentals, practices and principles, and are not legal opinions, advice, or guaranteed outcomes. Consult with your legal counsel when addressing legal concerns related to human resource issues and legal contracts.)

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Port of Bremerton works to woo Boeing on giving Kitsap a shot at 737 plant By Rodika Tollefson When Boeing indicated earlier this year it may build its next-generation 737 plane (dubbed MAX) some place other than Renton, several states began the race to make themselves attractive for a new site. In Washington, a group called the Washington Aerospace Partnership was formed to try and convince Boeing to stay — in Renton or otherwise — and Kitsap has thrown the hat into the ring. Comprised of labor, local government and business leaders, the Washington Aerospace Partnership hired consulting form Accenture for a study that would show Boeing why the state is viable for an expanded aerospace industry. Kitsap leaders have been raising money to contribute toward the study (estimated to cost $600,000) as well as to raise the county’s profile as a potential site for a new plant. With the Port of Bremerton leading the charge, the local group has formed the Kitsap Aerospace Alliance and has met with Accenture and the Washington Aerospace Partnership to make its case. The port is proposing a look at the 2,000 industrial-zone acres in the South Kitsap Industrial Area (SKIA) as well as the more than 1,000 cares available adjacent to the Bremerton Airport. “I think (the meeting) went well. I think Kitsap County and SKIA will be in the report issued by Accenture and we’ll continue to monitor it,” said Port of Bremerton Executive Director Cary Bozeman. The Kitsap alliance’s case for the county also includes the area’s history of supporting the shipyard and navy base for more than 100 years, the availability of a runway that will accommodate 737s and can be expanded, and the proximity to the Renton plant and other supply-chain elements including SeaTac International Airport and a deepwater port in Grays Harbor. Local

Olympic Printer Resources, Inc., which remanufactures toner cartridges, has purchased Green Tree Office Products of Sequim. Both companies provide imaging products and repair service for printers, fax machines and personal copiers for customers in Kitsap, Jefferson and Clallam Counties. Olympic Printer Resources, Inc. began servicing Green Tree Office Products clients on Oct. 1. The Norbut Law Firm of Poulsbo processed the sale and escrow transaction. Steve Tompkins, owner of Green Tree Office Products stated, “After nine years in the cartridge remanufacturing and printer service business in the Sequim/Port Angeles area and a lot of soul searching, I have made the decision to move back to Kansas City, Mo. to be closer to my family. Olympic Printer Resources, Inc. has been in business since 1993 and has a reputation for quality product and superior customer service. I am confident that all my customers past and present will be well taken care of by their staff.”

competition from other states,” Bozeman said. “If Boeing decides to stay in Renton, we’re happy for Renton and support that.” But if it doesn’t, he said, the Kitsap alliance wants to “get on the radar screen and be seen as an option for a proposed new site.” “I think we made progress in that regard, but I’m not sure to what extent,” he said. The Accenture report is due out by November, and in the meantime the Kitsap Economic Development Alliance has made the topic of Boeing as the focus for its Decision Makers forum on Nov. 3. In addition to a panel of local business leaders,

the event includes a keynote address by Tayloe Washington, Washington Aerospace Partnership co-chair. Boeing is expected to announce its decision next year. The company has said the MAX will be available by 2017, and it has already received orders from at least five airlines. The plant is expected to create 5,000 new jobs. “It would be a huge impact to the economy in this county,” Bozeman said. “There’s not much you can think of that’s bigger in economic value than landing a Boeing 737 plant.”

November 2011 Kitsap Peninsula Business Journal•KPBJ.com 15

Olympic Printer Resources buys Green Tree Office Products of Sequim

leaders also see the local workforce as having an advantage, with one of the highest concentrations of architects and engineers, a large number of Boeing employees already residing here, and military personnel ready for new careers upon retirement. In addition, Olympic College has a track record for tailoring workforce training programs to local needs, they say. “The report, I think, is trying to demonstrate the reasons why Boeing should continue to manufacture its airplanes in the state of Washington and not other states — and there will be


Collaboration: What’s in it for both of you

16 Kitsap Peninsula Business Journal•KPBJ.com November 2011

By Dan Weedin Last month, I collaborated with a fellow consultant based out of Pittsburgh on a teleconference. Rich is an expert on stress management and resiliency in the workplace. I talk about resilience in mitigating and responding to risk. It seemed like a good opportunity to see what kind of synergy we could create. The result was a very well attended and dynamic teleconference; a new piece of intellectual property with an MP3 audio download; and potential for more with booklets and speaking. In the past year, I’ve collaborated with colleagues to conduct marketing events; speak at conferences and seminars together; host executive breakfasts; and co-publish

articles and blogs. Without exception, each time I came away with value either through increased revenue, additions to my mailing list, referrals, and brand exposure. If you’re not collaborating at some level to raise your brand awareness, add to your contact list, or heighten your own intellectual property, then you’re missing a golden opportunity to increase your revenue. Collaboration in any economic climate offers tremendous possibilities for all sides. In a struggling economy, it becomes even more important. Here are key benefits to any type of collaboration: Expanding List and Brand Awareness. I’m not talking about buying or selling lists. I’m talking about raising awareness through shared marketing campaigns. Each one of you promotes to your lists, thus raising awareness of the partner to the other community. Economy of scale. Whether you’re producing a book or other intellectual property, or simply sharing costs for a location, you can both on save expenses. Joint Ventures. If you speak together and someone sees you, the possibility of a joint project is increased. The expertise provided by two or more of you may be attractive to a buyer. Collaboration doesn’t need to be limited to professional service providers. Examples might be joining forces to share costs for a trade show booth, splitting costs on

advertising space, co-hosting an event, or jointly speaking at a trade conference where it makes sense to combine expertise. Here are the Dan Weedin “rules” that you can use to determine who and how to collaborate: Relevance. It must make sense as to why you are together or nobody will care. When I co-speak with a supply chain expert on managing and insuring risk for your supply chain, people get that. If I were to co-speak with someone whose expertise was nonprofit fundraising, there would be a lot of confusion! You don’t want to be the same, but you do want to have a “hook” on how and why your combined proficiencies will improve the condition of your target market. Equal lists. I have nearly 2,000 people on my “list.” If I were to collaborate with someone who had 200,000, they might not feel like they were getting an equal opportunity to expand their brand. You want to play ball with someone who can bring you to their market and vice versa with some level of equality. Agreement on terms. In most cases, you should be splitting costs, opportunities, liabilities, and leads. Agree to all of these in advance so there are no misunderstandings. Roles in follow up. Be clear about how each one of you follow up. In fact, it makes sense to share this task. Create intellectual property that can be shared and distributed to add value to your collaboration.

Marketing. Don’t forget to share the experience through referrals, testimonials, videos, and press releases. Leverage the fact that you worked together. And promote that widely to both audiences. Collaboration offers a fantastic opportunity for you to grow the number of people who know you exist. It should be a win-win-win scenario for the collaborators and for the clients. By joining forces to expand your brand and your trust, you ultimately end up being able to help more people. That leads to more clients, greater revenue, and more fun! (Editors note: Dan Weedin is a Poulsbobased management consultant, speaker, and mentor. He helps entrepreneurs, organizations, and small business owners to create remarkable results through leveraging the power of relationships. He is one of only 32 consultants in the world to be accredited as an Alan Weiss Master Mentor. Weedin can be reached at 360-697-1058; e-mail at dan@danweedin.com or visit the web site at www.DanWeedin.com.)

Harrison Medical Center designated as a Blue Distinction Center Harrison Medical Center has earned designation as a Blue Distinction Center for Knee and Hip Replacement by Regence BlueShield in Washington. This means that Harrison has met objective, evidence-based thresholds for clinical quality after a rigorous evaluation process. Only 13 hospitals in Washington State have earned this designation for quality care. Harrison is the only Blue Distinction Center for Knee and Hip Replacement serving the Kitsap, Olympic and Key peninsulas, as well as Mason County. According to the BlueCross BlueShield Association, the selection criteria (clinically meaningful measures) used in designating the centers were developed in collaboration with expert physicians and medical organizations. Medical facilities voluntarily submit clinical data to establish they meet selection criteria, which included, among other things, an established knee and hip replacement program, performing required annual volumes for certain procedures; an experienced knee and hip replacement surgery team, including surgeons with board certification, subspecialty fellowship training, and required case volumes for knee and hip replacement procedures; an established acute care inpatient facility, including intensive care, emergency care and a full range of patient support services; and full accreditation by a Centers for Medicare and Medicaid Services (CMS)deemed national accreditation organization. For more information visit www.bcbs.com/bluedistinction.


WRA launches ServSafe Alcohol training program

Bay Vista Commons auction benefits Alzheimer awareness Bay Vista Commons hosted its second Annual Silent Auction at its assisted living and memory care community on Sept. 8. Over 50 baskets and various gift certificates were contributed from local businesses, Seattle and Tacoma businesses, and Bay Vista Commons staff, which included homemade spaghetti sauce, homemade jam and passes to Woodland Park Zoo, Museum of Flight and Silverwood. Bremerton Mayor Patty Lent issued a proclamation for an “Alzheimer’s Awareness week” in the city of Bremerton which was accepted by the team captain for Bay Vista Commons, Chris D’Attilio on Sept. 7. Lent also made an appearance at the auction. Attendees raised $996 during the event. To date Bay Vista Commons has raised $1,763 through various fundraising activities for the Alzheimer’s Association.

Life Care Center of Port Orchard has been honored as Life Care Centers of America’s Northwest Division Facility of the Year. The award was presented during Life Care Centers of America’s annual management meeting. This award recognized the facility as the premier location in Life Care’s Northwest Division, which includes 30 skilled nursing and rehabilitation facilities in Washington, Oregon and Idaho. Criteria for this award include excellent

customer service, positive financial performance, a strong activities department, an active volunteer program and involvement in the community. Life Care Center of Port Orchard, under the leadership of Executive Director Scott Davis, was praised for its excellent state inspection results and dedication to resident care. “The energy and commitment shown by the facility leadership has resulted in

motivating the associates to excel in all areas,” said Nadine DeKlerk, division vice president. “Each associate embraces a customer service attitude, making each resident feel as important as he or she truly is.” “We congratulate Scott and his team of associates who, together, have developed such a strong facility,” said Beecher Hunter, Life Care president. “The residents and rehab patients at Life Care Center of Port Orchard are the real winners as they benefit from the works of love performed by the team every day.” Life Care Center of Port Orchard is located at 2031 Pottery Ave.

November 2011 Kitsap Peninsula Business Journal•KPBJ.com 17

The Washington Restaurant Association Education Foundation (WRAEF) announces that it is now offering ServSafe Alcohol, a program designed to help restaurants provide employees with comprehensive alcohol service training. The WRAEF is facilitating this mandatory training program via convenient online course and exam; however, a classroom training and testing option also is available. “The WRA Education Foundation is committed to providing top notch training options to Washington’s restaurant industry, and ServSafe Alcohol exceeds that standard,” said Lyle Hildahl, director of the WRAEF. “We are proud to offer this program to Washington’s restaurant workforce. Safe and responsible alcohol service is one of the most important issues within the hospitality industry, and we strive to ensure that the industry has the tools needed to make it possible.” ServSafe Alcohol implements the same approach ServSafe pioneered as the industry’s most recognized food safety training and certification program. ServSafe Alcohol was developed with input from experts in the restaurant, legal, regulatory, academic, insurance, medical and law enforcement fields. It offers a holistic approach that helps assure everyone has the training needed to serve alcohol responsibly. The online course offering only adds to this program’s convenience and accessibility. ServSafe Alcohol Washington incorporates Washington-specific laws and regulations as required in all mandatory alcohol server-training programs in Washington State. By providing this state specific training throughout the standard ServSafe Alcohol material, students receive two certifications upon course and exam completion, the ServSafe Alcohol certificate and the Washington state required Class 12 or Class 13 permit. For more information on ServSafe Alcohol training, contact Kristina McLeod, WRAEF programs manager, at (877) 6959733, ext. 135.

Port Orchard Life Care Center named Northwest Facility of the Year


Economic Development Alliance focuses on local business growth Kitsap nonprofit provides free services to Kitsap businesses while helping recruit new companies. By Rodika Tollefson The Kitsap Economic Development Alliance is well-known in the local business community for supporting economic development projects and working on business retention and recruitment. What may be less known is KEDA’s behind-thescenes comprehensive business assistance program — a broad range of consulting and training services, all offered for free to businesses of any size. KEDA is a nonprofit entity supported through public and private funding, including business investors and Kitsap County (the lead funder). Some money also comes through a HUD Community

Development Block grant. “We believe you maximize your opportunities when the public and private sector work together. The nature of our work here is delivery of professional services to business clients, just like any other professional service firm,” said John Powers, who came on board as the KEDA executive director at the end of August. In addition to Powers, the alliance has three employees and an accounting consultant. The organization — which is not member-driven — provides assistance with planning, workforce development and facilitating connections. Services offered include custom research and economic impact analysis, a business opportunities newsletter available to anyone via email, technical assistance and referrals. Designated as one of the state’s seven Procurement and Technical Assistance Centers (PTAC), KEDA has a PTAC certified counselor who provides technical assistance and training to businesses in seven counties. “We teach companies, from startups to well established businesses, how to do business with the government,” said Becky Newton, the group’s former manager of research and communications.

She said the emphasis of the classes currently is on doing business with the Department of Defense because 55 percent of the local economy is based on DOD. In addition to the classes, KEDA organizes regular events for subcontractors as well as co-hosts events with other organizations, such as the West Sound Technology Association, and Impact Washington. Mary Jo Juarez, a certified PTAC counselor who teaches monthly Government 101 classes, said the companies interested in the training come from a variety of industries, ranging from grounds maintenance to engineering and IT. “We teach them how to search online opportunities, the certification they need for government contracting, and we do one-on-one consults,” said Juarez, who has 30 years of experience in government contracting. “…We teach them the language (of working with government).” Simple things that can help companies succeed in doing business with the federal government, for example, include special business cards with all the government issued industry and company codes (such as DUNS and NAICS). “We don’t necessarily do all the

footwork for (the companies) but we can review their contracts and teach them the basics,” Newton said. Kathy Cocus, director of business development, rounds up the team. She estimates that about 25 percent of KEDA’s work is focused on active business recruitment. When companies are interested in locating to Washington state, KEDA is the only agency in Kitsap County that receives the lead and then competes against other counties to attract the company to Kitsap. “We’re showcasing our workforce, what our economy is like, what sites are available, as well as the lifestyle like the shoreline and having the best of both worlds because we’re close to a big city,” Newtown said. Powers, who has previously worked in economic development in Seattle and also served as the mayor of Spokane, said he was very impressed within the very first week of all the services the small KEDA team provided, and said the organization’s work was unique when compared to some other economic development agencies. “This is a remarkable team KEDA has put together,” he said. “It’s a really solid program.”

Harrison receives Cardiac Level 1, Stroke Level 2 designations

18 Kitsap Peninsula Business Journal•KPBJ.com November 2011

Harrison Medical Center recently received a Cardiac Level 1 designation and a Stroke Level 2 designation within the new state of Washington Emergency Cardiac and Stroke System. The system, being launched in phases across the state, is modeled on the state’s trauma system and has the goal of reducing the time it takes for heart attack or stroke patients to get medical care. “Each minute is critical to get the right treatment for stroke, heart attack and cardiac arrest,” said Secretary of Health

Mary Selecky. “The new system speeds up access to life-saving treatment.” The Department of Health is working with Emergency Medical Services (EMS) to identify when each county is ready to use the new system. To be ready, hospitals that want to participate must be designated as stroke and/or cardiac centers, and EMS providers must be trained on new procedures for assessing, treating and determining the appropriate hospital for their patients. In the past year, 73 of 91

hospitals have been categorized as cardiac centers, stroke centers, or both. Many EMS providers have already been trained on the new procedures, and several counties are now up and running with the new system. People get emergency care for heart problems and stroke in all counties now, but the new system will improve that care by sending them to the best facility for their condition, speeding up the process. Faster treatment can significantly reduce the risk of death and disability. “The goal of the new system is to get the right patient to the right hospital in the right amount of time,” said Dr. Kathleen Jobe, University of Washington Medical Center’s Emergency Department and chair of the state’s Emergency Cardiac and Stroke Technical Advisory Committee. “We need a wellcoordinated system to make that happen.” Together, heart disease and stroke are the leading cause of death in Washington. Fewer than 4 percent of people who suffer the most common kind of stroke get the best treatment for that type of stroke because they don’t get to a hospital that can treat them in time. Less than half of all people who have a heart attack receive the most effective heart attack treatment. Last year, the state passed a law to create a formal cardiac and stroke system of care to improve the ability to get people to life-saving treatment in time, especially in rural areas.

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November 2011 Edition

Events And Activities Wednesday, Nov. 2nd Kitsap HBA Remodelers Council Remodeling Excellence Awards, 5:00 p.m. @ Silverdale Beach Hotel All HBA Members Encouraged to Attend and RSVP to the HBA Thursday, Nov. 3rd Developers Council Mtg, 7:30 a.m. HBA Wednesday, Nov. 9 - Friday, Nov. 11 BIAW Board of Director’s Meeting Yakima, Washington Friday, Nov. 11th HBA CLOSED in observance of Veteran’s Day Be sure to thank the veterans in your life! Thursday, Nov. 17th SPECIAL DATE Executive Committee, 2:00 p.m. Government Affairs Cmte., 2:30 p.m. Board Meeting, 3:30 p.m. Thursday, Nov. 24th & 25th HBA CLOSED In observance of Thanksgiving Thursday, Dec. 1st Developers Council Mtg., 7:30 a.m. HBA Wednesday, Dec. 7th Remodelers Council, 4:00 p.m. HBA

Consumers and builders alike are hearing more and more about environmentally sensitive construction and bits and pieces about energy efficiency. What does it mean, and where can you learn more? To learn some basics about energy retrofits for both residential and light commercial buildings, please visit www.kitsapenergyupgrade.com. This site will walk you through all the steps recently taken to upgrade the 20 year-old HBA building in Bremerton. One of the most encouraging things about the Kitsap Energy Upgrade project is the “do-ability” of the steps we took. While everyone might not choose to do all the steps we did, there are living examples for you to review and consider at this website and at our building. Members and the public are welcome to tour our building Monday — Friday 8 a.m. to 5 p.m. to learn more. Do you wonder if there are any tax breaks and rebates still available? Many of you have probably heard mixed stories about that. For a complete listing of such programs by state and service provider, visit http://energy.gov. This is the US Department of Energy site and has an easy to use search mechanism to find out what is available for you. Here in Kitsap County, Bremerton and Bainbridge Island there is a full court press going on to connect homeowners (for this program, a single family residence is up to four units.) with energy assessments and ultimately energy consumption related improvements to homes throughout the County. To learn how this will help you, and how to access the instant $350.00 incentive, please visit www.RePOWERKITSAP.ORG. If you want to learn more about your energy provider specifically, you will find valuable information at their websites as well. Cascade Natural Gas can be located at www.cngc.com. Puget Sound Energy can be found at www.pse.com. Finally, to learn more about the almost two decades of Built Green® experience at the HBA and about how to improve the quality and quantity of stormwater runoff from your property visit www.kitsaphhba.com and www.kitsaphba.com/lid respectively. To learn more about the Built Green® throughout Washington, you might visit www.builtgreenwashington.org . Resources abound for quality and accurate information. Now is a great time to seize these opportunities both as homeowners and contractors. Taking the time to be energy efficient is both easy to do each day for the environment but also a way to save money and improve the comfort of your home or office. If you missed the recent Peninsula Home and Remodel Expo, please make a note to attend the Peninsula Home & Garden Expo March 16, 17, and 18, 2012. We will certainly have information on energy efficiency, our building retrofit, and Re Power Kitsap. The HBA genuinely appreciates the support of the Kitsap County Board of County Commissioners in helping us receive the Department of Energy grant for this community benefit project and specifically Commissioner Charlotte Garrido for her vision. Autumn Salamack is the County staff coordinating this grant as well as the retrofits the County has conducted on many of their own buildings-a huge undertaking that Autumn has done a superb job with. The HBA has been surrounded by a team of experts throughout our retrofit to include these HBA Members: Sun Path Custom Construction, O’Brien & Company, Cloise & Mike Construction, Sullivan Heating, Kitsap Plumbers Group, TNT Construction, T&S Renovations, Sound Glass and Creative Countertops.

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

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

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

2011 ALTERNATE STATE DIRECTOR Robert Coultas • Rick Courson

LIFE STATE DIRECTORS Bill Parnell

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

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

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

2011 COUNCIL & CHAIRS Build a Better Christmas. . . Randy Biegenwald Built Green . . . . . . . . . . . . . . . . Walter Galitzki By Laws & Nominations . . . Ron Perkerewicz Developers Council . . . . . . . . . . . . . Norm Olson Golf Classic . . . . . . . . . . . . . Shawnee Spencer Govt. Affairs Cmte. . . Wayne R. Keffer CGR, CAPS 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 . . Stephanie Buhrman info@KitsapHBA.com Expo & Events Director . . . . . . . . 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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Thursday, Dec. 15th SPECIAL DATE Executive Committee, 2:00 p.m. Government Affairs Cmte., 2:30 p.m. Board Meeting, 3:30 p.m.

Kitsap Energy Upgrade — Be in the know!


November 2011 Edition

This past September our Board was able to spend some Justin time with State Senator Christine Rolfes. She was very gracious to Ingalls take time to come chat with us Kitsap Trident Homes about the special session and the crisis with the 2011 budget 2011 President update. It will be an interesting few weeks with some passionate moments. The Senator brought slides and charts showing how the State budget is divvied up, where cuts have been made and the impacts more cuts will have. I find that in the news Education gets most of the attention and while it receives the most in dollars, as a result it also gets the most dollars cut. On the other hand Natural Resources makes up 1% of the general fund and the $107,578 that was cut made up 26% of the funds allocated for that department. There really is no easy way to cut 2 billion more dollars without having major i mpacts across the board. Senator Rolfes not only laid out the situation as it is, but also was proactive and brought to us some ideas for moving forward. They included changes to foreclosures, pursuing more opportunities in the aerospace and maritime jobs, ferry system reform, and revitalization policies dealing with SEPA and storm water. We listened and discussed all the above and really appreciated her jo ining us. This is where I attempt to put a spin on the doom and gloom of the national, state and local budgets and provide a positive plug for the building industry. The negative media that continues to appear in all forms of media, coupled with government continuing to impose new regulations and tight credit conditions, make it difficult to see the light at the end of the tunnel. Currently without housi ng in the economic recovery, the picture isn’t that encouraging. Why not try? Inventory of new homes for sale is at a record low across the country. Builders should be gearing up to meet demand, create new jobs and help the economy move forward. Unfortunately, production remains stymied due in part to the above mentioned. In the past home building has been the driver of recovery and once again will be a key to job growth. According to statistics on the NAHB website, constructing 100 single-family homes generates more than 300 jobs and $8.9 million in taxes and revenue for the local, state and federal governments. These taxes are what help fund our school systems and build strong communities. Housing normally accounts for more than 17 percent of the nation’s total economic output. With that in mind one would think our government should take steps to spur housing, create jobs and bolster our economy. In addition to all this, homeownership provides people security, stability and should be a solid long-term investment It would be helpful for government to delay mandated new home warranties, gutting vesting laws, imposing and raising impact fees, requiring unionized residential subcontractors. These are just a fe w of the risky ideas that have come up in recent past. Throw in updates to the energy code, shorelines, storm water and “who knows what’s next” new regulations, and the problems continue to compound. How about considering reducing taxes and burdensome regulations? This could start to pave the way for businesses to create family wage jobs and generate revenues. In closing, a healthy home building industry is a vital for a healthy local, state and national economy.

It is November and we have turned the corner toward the homestretch of 2011. Later this month, many will celebrate what they are thankful for and the HBA CGP is no exception. Having almost Executive completed my first full year as the Vice President Executive Vice President of this Association, I must thank my husband Frank and our sons Joey and Joshua for their support as this year has unfolded. It is also important to me to express gratitude for this year ’s Senior Leaders: Justin Ingalls, President; Wayne Keffer, 1st Vice President; Robert Baglio, 2nd Vice President; and Ron Perkerewicz, Immediate Past President. As is true every year, 2011 was full of twists and turns and the wisdom, professionalism and kindness of these four Association leaders was essential to successful outcomes. I also have to thank my predecessor and mentor, Art Castle. Art hired me in March 2006 and I can’t thank him enough for his guidance, humor, and loyalty, as well as all the assistance he has given me this year. I must share with our members how important our Executive Committee and Board of Directors are to the operations of the Association. They are committed to the mission of the Association, care deeply about those that are members now and those that will choose to join soon. The hours our Board of Directors give to the association is crucial to our success. I am grateful to the unsung heroes of the HBA — our sponsors. Each year, the HBA holds important events and our sponsors are a key element to funding them. Depending on the event, a sponsorship may be as little as $25 to thousands of dollars. Every contribution matters. Thank you so much! Dozens and dozens of members volunteer their time on committees and working our events and I am thankful for that help. The staffing at the HBA is half the number we once had and yet we continue to try and provide the same level of service. Volunteers have never been more valued. We know your time is stretched thin and we are so grateful you share some with us. I am grateful for our almost 300 member companies. Your continued support of this association allows us to continue to be the voice of the construction industry in Kitsap County. Your membership dues help to contribute toward our ability to engage on behalf of all area businesses affected by the construction economy. Those of you that have reached out to peers and encouraged them to join or renew their membership are a special group of members and are appreciated more than you may know. Finally, I want to thank Toni Probert and Stepanie Buhrman. These two staff are essential to the professional service we provide our members each day. They are front and center at our events and work each day with our members and the public. They are both valued greatly and I can’t thank them enough. Happy Thanksgiving all!

Teresa Osinski


November 2011 Edition

In this world of marketing, advertising, social networking, and being media savvy I sometimes think we forget Wayne R. Keffer that business is about WRK Construction, Inc. people and how we can 2011 Chair meet their needs or serve them. I have very specific thoughts on how business should be done, simply put I get involved In my community support the things I believe in and don’t sit around and let some one else do the work if I can step up and get involved. Recently a great example of this was when fellow HBA member, Rick Courson helped his neighbor rebuild a fruit stand in Scandia. Not only does Rick live and work in the area, but when needed he reached out and helped. By putting someone else first, Rick has undoubtedly gained creditability beyond just the neighbor in need. Though not done for any future benefit, the fact is that by helping in his community, that community will probably call him first when they are looking to hire a trustworthy professional. We don’t have to have an unfortunate event like Rick’s neighbor did to get involved. There are many organizations that need your investment of time or resources. For me, I love serving in my community, and in doing so have connected to the people in the areas I work in. Obviously, the HBA is an organization I volunteer in. It has been rewarding to represent a community within a community. It has helped me to acquire a level of professionalism that I would not have even understood before getting involved. Other organizations I volunteer for are different, and help to keep my feet on the ground and show me how blessed I am in these trying times. For example, Royal Family Kids Clubs provides kids in the foster care system a week of love and care that they may have never had before. The by-product is I get to work with at-risk youth and show my faith in love. The boy scouts always need help. I had the opportunity to help a young man earn his Eagle Scout status with my skills. Maybe you could do the same. Opportunities abound. Here’s the point: if we work for our own good then go home and serve ourselves we do not gain relationships that will reward us physically or spiritually. Being thankful and offering a hand up to those in our community will be a win-win for us all.

Government Affairs Committee

Department of Ecology Release Draft Municipal Stormwater Permits The Department of Ecology released the draft Phase I and II Municipal Stormwater General Permits in late October. These draft permits are available for review and comment: • Phase I Municipal Stormwater General Permit • Western Washington Phase II Municipal Stormwater General Permit • Eastern Washington Phase II Municipal Stormwater General Permit Ecology invites public comment on the proposed draft permits through February 5, 2012., and expects to issue the final permits in summer 2012. In accordance with recent state legislation, by July 31, 2012, Ecology is required to reissue the existing Phase II permits unchanged for a period of one year (effective August 1, 2012 through July 31, 2013). At the same time, Ecology is required to issue the revised/updated Phase II permits which would be effective starting August 1, 2013 through August 1, 2018. These municipal permits will require each of the affected cities and counties to adopt the changes in their stormwater regulations to comply. This is pursuant to requirement from the Federal Clean Water Act. Among the changes in the Municipal Stormwater Permits are requirements to utilize Low Impact Development where feasible and the elimination of the one acre threshold. The implementation of the changes in these permits are phased over several years. Ecology will hold statewide public workshops and hearings, and invites public comment in oral testimony at the public hearings or in writing. Information on the public process is available at www.ecy.wa.gov/biblio/1110078.html. To view the draft permits or for more information on the reissuance process visit www.ecy.wa.gov. If you have questions on the draft permits or reissuance process, you may contact: • Phase I permit: Carrie Graul at carrie.graul@ecy.wa.gov or 360-407-7221 • Phase II permits: Harriet Beale at harriet.beale@ecy.wa.gov or 360-407-6457

Thank You Kitsap for ANOTHER Terrific Peninsula Home and Remodel Expo! During the recent Expo, we were thrilled to hear praise from our vendors and from the attending public. We were even happier to find that attendance stayed strong over last year! We fully expect attendance numbers to increase next fall as consumers gain confidence in their economic situation. We want to thank our vendors and our sponsors. Please support businesses that support the HBA. To view the complete list of vendors at the recent Expo, please visit www.kitsaphbahomeshow.com. Be sure to do business with HBA members, vendors, and our Expo sponsors: Puget Sound Energy, Wave Broadband, Kitsap Sun, and Kitsap Credit Union. Thank you again, for a great Peninsula Home & Remodel Expo! For a complete list of HBA members visit www.kitsaphba.com.

Hand-Selected Granite from Brazil Directly Imported for You! After our trip to Brazil, containers of granite are arriving at our showroom in Poulsbo. Discover a vast array of tile selections, slab granite and quartz, stone samples and custom countertops. Tired of the surfaces in your home? Time to “GET CREATIVE!”

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November 2011 Edition

Welcome New Members Cheryl Duke Commercial Fence Corp 150 S Michigan St, Seattle, WA 98108 (206) 767-7433 Email: cduke@fenceitall.com Sponsor: Robert Baglio, The BJC Group

James Moen Lexar Homes 1213 Long Rd., Centralia, WA 98531-1042 (360) 807-1849 Email: jmoen@lexarhomes.com Sponsor: Judy Mentor Eagleson, Mentor Co.

Steve Taylor Gale Contracting Services PO Box 3304, Silverdale, WA 98383-3304 (360) 662-0749 Email: steve.taylor@mascocs.com Sponsor: Justin Ingalls, Kitsap Trident Homes

Todd Hellmers T & S Renovations LLC PO Box 951, Poulsbo, WA 98370 (360) 779-3689 Email: tsrenovations@comcast.net Sponsor:Walter Galitzki, Sun Path Custom Construction

Thank You Renewing Members Over 20 Years Kitsap Lumber & Hardware Inc (22) Over 10 Years Stan Palmer Construction Inc (13) Bruce Giese Const. Co. Inc (11) 10 Year Anniversary Kimco Plumbing Inc Vern’s Organic Topsoil Over 5 Years Contractor’s Roof Service Inc Peninsula Roofing LLC

Habitat for Humanity Quadrant Homes 5 Year Anniversary Port Orchard Plumbing & Htng Inc United Moving & Storage 2 Years and Over Whitworth Excavating Inc Olympic Ridge Inc FIRST YEAR RENEWALS Northwest Drywall Professionals Inc.

Member Advantage

National Association of Home Builders Take advantage of YOUR MEMBER ADVANTAGE! www.nahb.org/ma

There are national companies that want to do business with the construction industry. Each company named below, and several others, are putting their money where their mouth is and offering MEMBERS ONLY these discounts. Do you use FedEx? Are you saving up to 29% when you ship Express? How about 20% every time you use FedEx Ground? There are many other discounts too. Visit, www.1800members.com/nahb or call 1-800-636-2377 for details. Do you use Dell? Members can save up to 30% off on top of the line Dell computers. Call 800-695-8133 and mention NAHB or visit www.dell.com/mpp/nahb. Still not a believer? Do you need office supplies? Visit www.officedepot.com/nahb and start receiving 10% off all delivery orders and FREE shipping on orders of $50 or more. You can call Office Depot directly at 800-274-2753 and mention your NAHB membership to learn more. For all the details on all the companies giving our members discounts, please visit, www.nahb.org/ma. These discounts are there for members to use. If you have any questions, please call the HBA at 360-479-5778. We are happy you are a member and look forward to connecting you with all the NAHB Member Advantage money saving opportunities.

24 hour emergency clean-up

ACTION

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

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

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

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Rice Fergus Miller wins three awards The Bremerton-based architectural and design firm of Rice Fergus Miller has won awards for three projects throughout the Puget Sound region it has been involved with. The Sophia Bremer Child Development Center at Olympic College in Bremerton won the People’s Choice award from the International Interior Design Association’s North Pacific Chapter. The LEED Silver building, which includes seven dedicated childcare rooms, administrative offices, and a classroom is a teaching facility and childcare center that serves approximately 100 children. The

building is filled with unique features including tricycles hanging as art at the entry, a tunnel-like ramped corridor with porthole windows, and water-related design features woven into the building as teaching elements for the children. One client commented about the space, “I love this place! It’s magical inside and out.” The City of Olympia Fire Station 4 won a Station Style Gold award from the national Fire Chief magazine’s 11th Annual Design Awards in their Career Station category. This LEED Gold station has achieved a 24 percent reduction in energy

TRC employee receives Certified Erosion and Sediment Control Lead Tim Ryan Construction, Inc. (TRC) employee, Craig Frazier recently completed his Certified Erosion and Sediment Control Lead (CESCL) training and certification. If a construction project disturbs over an acre of land or is in a subdivision, a trained lead must be on site or available at any time. The CESCL is trained to inspect, install, and manage storm water controls on the project site to ensure compliance with storm water discharge regulations. This includes permitting, creating a site-specific storm water plan, as well as selecting, installing, and maintaining storm water control features, water sampling and reporting. The project owner is ultimately responsible for the discharge of storm water off the project site so selecting a qualified general contractor is imperative. TRC’s current projects include The Suquamish Museum, Harrison Medical Center professional offices, Silverdale Surgery Center, H&R Block — Belfair tenant improvement and Kitsap Podiatry’s new office. For more information, contact Dan Ryan at (360) 779-7667 or visit the website at www.TimRyanConstruction.com.

Partners In Success Pacific Northwest Title is holding a Gently-Used Book/CD/DVD Sale

(Near the West Main Entrance) Call (360) 692-4141 for more info. All proceeds benefit the United Way of Kitsap County. Get some great books, cds and dvds while supporting a very worthy organization!

SILVERDALE OFFICE 360-692-4141 • 800-464-2823 2021 NW Myhre Road, Suite 300 Silverdale, WA 98383

also won a Station Style Gold award from Fire Chief magazine in their Renovation category. This project included a 635 square foot addition and reconfiguration of living quarters. A single large dorm room was replaced with six private sleep rooms. Gender disproportionate locker rooms were replaced with private restrooms. Renovating this station was accomplished for approximately 60 percent of the cost of building new. Rice Fergus Miller Architecture & Planning is located at 275 Fifth Street, Suite 100, in Bremerton and can be reached at www.rfmarch.com, or (360) 377-8773.

The Fact and Fiction of Credit Repair Learn how to rebuild credit the right way Are you suffering from excessive credit card debt? Do you owe more than $10,000? Would you like to erase that debt for good? Sounds good, doesn’t it? Unfortunately, in the credit world, if it sounds too good to be true-it most certainly is. These predatory scams prey on us when we’re most vulnerable: in debt and desperate. Maybe you lost a job. Maybe you had an unexpected medical expense. It can happen to anyone. During these times, it’s easy to start grasping at anything that seems like an easy fix. While there are some legitimate credit repair companies out there, it is also a situation ripe for getting ripped off. Always make sure you do your research and get a firm written contract before committing to a company. However, even with legitimate companies, there is nothing legally that they can do for your credit that you can’t already do yourself. While it may seem like your credit is beyond repair, there is certainly hope. Take a deep breath because it’s time to start rebuilding your credit the right way. 1. First off, check your credit score for free at annualcreditreport.com. Look at the individual items that are negatively affecting your credit. Here are the most common criteria: • Recent derogatory debt or public records such as bankruptcy or a tax lien • Balances in proportion with available balances • Too many inquiries or activity in the last 12 months 2. Now, take action. If you see inaccurate or questionable items on your credit report, write a dispute letter to the credit bureau in question. The credit bureau has 30 days to investigate your dispute and respond to you with the results of the investigation. In the letter, clearly identify each item in your report you dispute, state the facts and ask that it be removed or corrected. 3. Handle your current debts responsibly. Avoid buying more car than you can afford. Keep your credit card balances at 30 percent or below the available balance for optimal credit scoring, and don’t charge more than you can pay off monthly. 4. Make sure your credit score is working for you. Not having debt does not mean you will have good credit. If you are opening an account to gain credit, make sure that company reports to the bureaus. Not every company does. If all of this sounds too tough to tackle on your own, there is support. The local mortgage professionals here at The Legacy Group are a solid resource on credit issuesparticularly if you have a future home purchase as an end goal. Other sources of credit assistance include American Financial Solutions and Kitsap Community Resources. We’re local. We’re in your corner. And we look forward to listening.

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

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360.698.6440

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November 2011 Kitsap Peninsula Business Journal•KPBJ.com 23

DATE: Saturday, November 19th TIME: 10:00 a.m. – 4:00 p.m. LOCATION: Kitsap Mall, Silverdale

consumption compared to conventional fire stations. This can be attributed to the use of energy efficient direct and indirect lighting, daylight sensors for turning light fixtures off, aggressive insulating of walls and roofs, heat exchangers to recapture warmth from exhausted air, low flow plumbing fixtures, and installation of a high-efficiency HVAC system. It will serve the Olympia community well by costing less to operate while satisfying the response needs of the area for many years. The newly renovated Valley Regional Fire Authority Fire Station 32 in Auburn


Option agreement could conserve 7,000 acres of forestland and shoreline Olympic Property Group (OPG) and Cascade Land Conservancy (CLC) announced that they have entered into an 18-month option agreement to conserve as much as 7,000 acres of forests and two miles of shoreline along Gamble Bay in north Kitsap County. The option agreement represents a milestone agreement in which representatives from Kitsap County, multiple environmental groups, two tribes and a large landowner have come together

to work cooperatively for a mutual goal, said CLC president Gene Duvernoy. The agreement covers multiple land tracts in north Kitsap County and represents the largest single conservation opportunity in Puget Sound. Each year, these lands are enjoyed by thousands of neighbors and other users from across the Puget Sound region for a variety of outdoor activities, such as hiking, kayaking, biking, horseback riding, and wildlife viewing. With the option agreement in place, CLC now

Downtown Buildings for Sale Downtown Bremerton • Commercial buildings 302 Pacific Avenue and 262-268 Burwell Street • Prime 18,377 sq. ft. corner site for renovation or redevelopment • Gross building area 50,300 sq. ft. • Across from Fountain Park • Call for info package; $1,800,000

Contact Victor C. Ulsh, CCIM Bradley Scott Commercial Real Estate

24 Kitsap Peninsula Business Journal•KPBJ.com November 2011

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has the ability to work with local officials, various organizations and key stakeholders such as the tribes to develop an outreach strategy to attract funding to acquire the property, Duvernoy said. Pope Resources, the parent company of OPG, has owned and managed the land around Gamble Bay for nearly 160 years. In 2007, the company announced that it planned to divest itself of these land holdings. OPG, in concert with Kitsap County, presented an initial plan, the North Kitsap Legacy Partnership. That plan was abandoned following objections by tribal and environmental interest groups, which supported the plan’s call for trails and open space but were concerned about the possible adverse effects on the health of Gamble Bay. “This agreement represents the last opportunity to get it right at Port Gamble,” Duvernoy said. “If our efforts are successful, we can look forward to spectacular natural forestland and shoreline that serve as the backbone to a regional land and water trail system, giving residents and visitors educational and recreational opportunities extending throughout Kitsap and Olympic peninsulas.” Duvernoy said the influx of tourism, support for shellfish operations, the attractiveness of the area for businesses seeking to recruit employees and the significant cost savings from not serving additional rural development could bolster the economy of Kitsap County in years ahead. “We’re very pleased that CLC has stepped forward to lead efforts to conserve the property,”

said David Nunes, president of Pope Resources. “They bring an impressive track record to the table in terms of pulling together communities to resolve difficult land use conflicts. We look forward to working with CLC to come up with a public ownership solution for these special lands. “However, if funding does not materialize, we will need to close this chapter and proceed with alternatives to divest ourselves of these north Kitsap land holdings.” CLC has a strong history of accomplishing large projects such as this one, Duvernoy said. Since its founding in 1989, CLC has grown into the largest land conservation, stewardship and community building organization in Washington State, leading efforts to conserve more than 173,000 acres of forests, farms, shorelines, parks and natural areas. The option agreement and CLC’s vision for the north Kitsap land was supported by Kitsap County Commissioner Rob Gelder, who noted that it dovetails closely with the Hood Canal Coordinating Council’s (HCCC) Integrated Watershed Management Plan. “The HCCC’s plan identifies forest and nearshore conservation as a critical action to ensure the long-term health of the canal, but also emphasizes the need for livable communities, sustainable employment, and cultural heritage,” he said. “Port Gamble brings all of these factors together. We have to get this done.” The Port Gamble tidelands offer the potential to provide abundant natural resources, including the possibility of a community shellfish farm under the auspices of a cooperative effort led by the Puget Sound Restoration Fund in conjunction with the Port Gamble S’Klallam Tribe, the Suquamish Tribe, OPG and the broader community. Gamble Bay is part of an interconnected ecological system that supports wildlife species in Hood Canal, Admiralty Inlet and central Puget Sound. The bay and forests are home to endangered and threatened salmon species, critical stocks of forage fish, and important habitat and migration corridors for many bird species and marine mammals. Representatives from the Port Gamble S’Klallam and Suquamish tribes as well as various government and community stakeholders attended today’s announcement event, which was held in the pavilion at Port Gamble overlooking Gamble Bay. “This is a great opportunity,” said Leonard Forsman, chair of the Suquamish Tribe. “But it is also a great challenge that will take hard work and unity among everyone involved. We all have to go into this with the right spirit to get it done.” With its geographical and cultural connections, the Port Gamble S’Klallam Tribe has made conservation of Gamble Bay a top priority, said tribal chair Jeromy Sullivan. This new conservation effort, which includes the shoreline and lands around Gamble Bay, is one that the tribe strongly supports. “We have an obligation to our ancestors, our elders and our youth to ensure that Port Gamble Bay will be restored and protected for the future,” Sullivan said. “It means a lot to us to be joining in this effort by the landowner and others from all around Puget Sound to try to conserve these lands.”


Rush Commercial breaks ground on apartment project Gig Harbor construction company Rush Commercial recently broke ground on new a multifamily development project in Tacoma. Scheduled for completion in the first quarter of 2013, the Tacoma Mall Apartment project combines two seven-

FirstService throws support behind bulk REO-to-rental program

Pacific Coast General awarded contract by City of Tacoma Pacific Coast General, LLC, a Port Orchard based contractor, has been awarded a contract by the City of Tacoma to reconstruct city sewers and water systems as well as reconstruct city streets. The project is located in north Tacoma and is part of Tacoma's on going efforts to improve its aging infrastructure.

One- and two-bedroom units in the Tacoma Mall Apartments feature open, space-saving floor plans to maximize square footage and offer an airy, bright feel. Building amenities will include underground parking, a recreational center (pool, spa, library, game room) and close proximity to shopping at the Tacoma Mall. “We’ve built other multifamily complexes but this provides a unique opportunity for us to expand our level of quality to the urban core,” said Dan Harrison, project manager at Rush. “We have designed the building to address the

lifestyle of modern families and professionals, providing comprehensive amenities and high-end finishes beyond anything offered in this region to date.” Rush Commercial was founded in 1987 and has built a wide and varied portfolio of development projects ranging from medical and dental buildings to retail centers and multifamily communities. The company also contributes to a long list of charitable organizations including the Franciscan Health System, Mary Bridge Children’s Foundation and the Cystic Fibrosis Foundation’s Walk for the Cure.

November 2011 Kitsap Peninsula Business Journal•KPBJ.com 25

By Kerry Curry, HousingWire.com Property management and leasing provider FirstService Corp. said it supports a plan to allow bulk disposition of distressed housing assets from the Federal Housing Finance Agency. FirstService, parent to Colliers International, First Service Residential Rental Management, Field Asset Services and TenantAccess, said bulk sales to institutional investors that would convert REOs to rentals makes sense, but urged the Obama administration to pursue a diverse approach that can support investors across a wide spectrum of size and geography, including nonprofit investors. FirstService is one of nearly 4,000 companies and individuals who responded to the FHFA's REO asset disposition "request for information," or RFI, earlier this month. The FHFA solicited ideas on how to best dispose of more than 200,000 REOs held by Fannie Mae, Freddie Mac and the Federal Housing Administration. That number is expected to grow as more foreclosures work their way through the system. "FirstService’s intent is to provide alternatives that are practical, scalable and attractive to all parties in the pursuit of maximizing property value and stabilizing neighborhoods,” said Paul Hayman, an executive with FirstService and CEO of TenantAccess. “When considering potential investor partners and strategy, scale and speed-tomarket should be critical requirements,” he said. “There are many institutional and private investors with access to capital but initializing the management of a local market housing strategy that includes a diverse and scattered property portfolio can present significant logistical challenges.” FirstService recommends the development of a national set of standards for valuations, assessments and improvements and a national set of standards for renter service, property habitability and neighborhood stabilization. The company also proposes performance management and national third-party auditing at both the property and investor level to provide a uniform "checks and balances” system. Write to Curry at kcurry@housingwire.com.

story residential towers totaling 177 apartments, and grounds totaling approximately three acres. “From an investment standpoint, the future is bright for the multifamily sector,” said Rush President Matt Smith. “The increased availability of construction and long-term financing, and a decrease in the cost of construction have provided a catalyst for many developers to move forward with their multifamily projects. Much of the new construction growth has been in Seattle and Bellevue, but it is now starting to spread into areas like Tacoma and Olympia.”


Port Orchard gets first 24 hour automated gym/fitness facility

OfficeXpats now open on Bainbridge Island

Olympic Fitness Pro, located in the Albertson’s Mile Hill Plaza, has been in business since 2005 (previously Gateway & Max Fitness). Until now, the fitness club has been run as a traditional facility, staffed 5 a.m. – 9 p.m. on weekdays and slightly limited hours on Saturday and Sunday. On Sept. 5, Olympic Fitness Pro became a fully automated fitness facility. Now members can request special access to use the facility anytime, night or day. The Club has security cameras in use at all times and 911 pendants that can be worn by members and, at the push of a button, summon help from emergency responders. Vending machines have been installed and stocked with energy drinks, water and more. The lights will work off motion sensors that turn on and off automatically. Port Orchard has a large number of citizens who work shifts outside of the traditional 9 to 5 model. The goal of the owners is to make fitness so easily accessible, no one has an excuse to be unhealthy. With a number of 24 hour Clubs popping up across America, Olympic Fitness Pro is proud to offer Port Orchard an anytime approach to exercise. Reach Olympic Fitness Pro at(360) 895.3450 or visit olyfitness.com for more information.

A new co-working and events center on Bainbridge Island recently opened on the second floor of the Bainbridge Pavilion. OfficeXpats was founded on the principles of co-working. This worldwide trend allows consultants, small business owners, and others who typically work from home to create a social community; one in which they escape from working in isolation and have the opportunity to grow professional connections. “Working from home can be a great job perk, but it can also be isolating or even distracting,” said Jason Omens, co-founder of OfficeXpats. “Co-working provides the flexibility of working from home without the downsides. Members can use the space as little or as often as they’d like with the added benefit of being able to connect with other professionals.

Peninsula Credit Union receives Healthy Workplace Award On Sept. 21 the Great West Division of the American Cancer Society, presented Peninsula Credit Union with Stay Well Award for its work promoting a healthy lifestyle for its employees. Peninsula Credit Union has been an active participant in the American Cancer Society’s Workplace Solutions program, which focuses on simple changes can that lead to improved health and energy. Some of the programs and activities that Peninsula Credit Union has participated are: Active For Life, Lunch & Learn Sessions, Sun Safety Scavenger Hunt, “Great American Smokeout,” on-site massage therapy, on-site Blood drives, Flu Shot clinics, participation in a “10K a Day” Challenge and the Mason County Health Challenge. Peninsula Credit Union has also made a conscious effort to have healthier snacks available at meetings, and include monthly informational newsletters in their communication to employees promoting a healthy lifestyle. Peninsula Credit Union has also been a long supporter of Relay for Life and Making Strides against Breast Cancer through sponsorship and teams. Present to accept the award on behalf of Peninsula Credit Union was Gail Ryan, vice president of Human Resources and Vickie Gonzales, Human Resource Specialist and prior Relay for Life event chair, Making Strides against Breast Cancer team lead and past Relay for Life Regional Council member. The award was presented by Dr. Jeff Harris, the 2010 Stay Well award recipient.

26 Kitsap Peninsula Business Journal•KPBJ.com November 2011

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COMMERCIAL #CBA481338 $275,000 Location - Location+ACE- This 5021 SF investment building with office/retail areas, loading ramp and lay down areas is situated on 3/4 acre lot. Close to Bremerton Shipyard, located on St. Hwy 3 in Gorst area. Call Victor Targett, CCIM for details. 360-731-5550.

Commercial #CBA468464 $300,000 9000 Sq Ft building in the Bremerton Charleston area. Available for lease at .30 per foot, loading ramp, good parking and centrally located. Call Victor Targett, CCIM for details. 360-731-5550. $120,000 Commercial #CBA486951 Downtown Redevelopment in Bremerton offer one level Commercial retail/office space with 1,240 SF, 2 restrooms, 5 parking spaces plus on street parking in an area of redevelopment. Victor Targett, CCIM for details. 360-731-5550. Silverdale #CBA475911 Office for lease. Fully built out offices with restroom, kitchen and easy freeway access. Competitive rents and very close to hospital annex. Joe Michelsen 360-692-6102/360-509-4009. Bremerton #C482516 Close in warehouse/industrial space. Competitive price. Includes office, high ceilings, and large roll up doors. Joe Michelsen 360-692-6102/360-509-4009.

Silverdale #CBA485544 Four professional office spaces across from the Kitsap Mall. Sizes range from 1,166 sq.ft.-1,637 sq.ft; total 5,337 sq.ft. All ground floor suites in totally remodeled building. $16/sq.ft. full service includes all utilities. Mark Danielsen 360-692-6102/360-509-1299.

Lease #CBA409048 Ground floor office space in Silverdale. This is a very aggressive price as the competition is $2.00 per square foot more. This is an attractive newer building. Bob Guardino 360-692-6102/360-710-7844. Bremerton #272686 $550,000 Single story office/retail building built in 2008 in near new condition w/4,322 sq.ft. & ample off-street parking. Reception area, 5 large private offices, 2 baths, shower room, kitchen & conference room. Mark Danielsen 360-692-6102/360-509-1299. Mile Hill #281455 $599,000 3,840 sq.ft. 1997 office bldg- excellent condition, in a private setting on .79ac. Reception area, 8 private offices, conference rm, 2 meeting areas & kit. ADA access. Lrg detached 3 car garage has storage/shop. Mark Danielsen 360-692-6102/360-509-1299.

New business offers co-working space and expanded meetings or event space “In addition, co-working centers can help a small or medium-sized business grow by serving as a satellite office for new or remote workers. This helps to cut costs and allows businesses to be more strategic about how they expand their office space.” OfficeXpats also rents events space, which can comfortably accommodate up to 35 people for a class or screening, or up to 85 for a reception. All rooms are equipped with a spectrum of AV equipment and in the future, OfficeXpats will also offer a number of IT services including cloud computing/storage and virtual office capabilities. OfficeXpats is a membership based company; for more information, call (206) 780-2177 or visit the website at www.officexpats.com.

Local pulmonary, sleep specialist earns fellow distinction Roger K. Eagan, MD, FACP, FCCP, a pulmonary and sleep specialist practicing in Bremerton and Poulsbo, has been elected a fellow of the American College of Physicians (ACP), the society of internists. The distinction recognizes achievements in internal medicine, the specialty of adult medical care. Dr. Eagan was elected upon the recommendation of peers and the review of ACP’s Credentials Subcommittee. Eagan is affiliated with Kitsap Pulmonary & Sleep Medicine and Harrison Medical Center’s Sleep Disorders Center. He is certified in internal medicine, pulmonary medicine, sleep medicine and critical care medicine by the American Board of Internal Medicine. He is a fellow of the American College of Chest Physicians and a member of the American Academy of Sleep Medicine and the Washington State Medical Association. The American College of Physicians is the second-largest physician group in the U.S. Membership includes more than 132,000 internists, related subspecialists, and medical students.


Peninsula Breast Center opens

The Haselwood Family YMCA received a $30,000 check from the Rotary Club of Silverdale in September. The donation is the first installment toward the $150,000 commitment the club has made over five years to the Y’s $12 million capital campaign for the newly opened facility. Another $50,000 will be given personally by Rotary members. The $30,000 grant came from funds earned through the Duck Race, which the club has been organizing for many years as part of Whaling

Days. The money will go toward the Y’s Teen Center, which will be used for other activities during school hours. “We wanted to take full advantage of the space so in the summertime, it was for the kids exclusively. Now that school is back, we’ll make it available for other groups, such as active older adults,” said Geoff Ball, executive director for the Haselwood Family YMCA. Elayne Burton, Silverdale Rotary president, said the club has a process for

choosing a five-year capital project that includes nominations and voting by members. “I think the reason we chose (the Y) is because we have a long history in our club of supporting youth programs,” she said. “It’s been a passion for our club. We were looking for something that will benefit the teens in the community.” The Rotarians’ previous capital campaign commitment, which was fulfilled last year, was $100,000 to the new hospice facility in Bremerton. The club, which has 67 members, meets at 12:15 every Thursday at Silverdale Beach Hotel.

November 2011 Kitsap Peninsula Business Journal•KPBJ.com 27

Many Kitsap residents with breast cancer have made the trek to Seattle-area hospitals in search of care — but that is no longer necessary now that Peninsula Breast Center has opened at 19917 Seventh Avenue in Poulsbo. The center was cofounded by Berit L. Madsen, M.D. and Sheila Lally, DO. Dr. Lally is a board certified General Surgeon specializing in breast cancer treatment and the primary surgeon at the Peninsula Breast Center. Dr. Madsen is also a co-founder of the Peninsula Cancer Center, located at the Peninsula Breast Center. The Peninsula Breast Center’s team approach includes radiologists, pathologists, surgeons, radiation oncologists, and medical oncologists, as well as a nurse practitioner who serves as a patient care coordinator. The benefit of a team approach is that patients’ medical history, imaging studies, and pathology results are reviewed collaboratively before recommending a treatment approach. Patients have the opportunity to meet with each of the specialists who will be involved in their care and receive a care plan including arrangements as needed for surgery, radiation, and medical therapy. The center works with the patient’s primary care provider and sends a summary of treatment immediately after their visit. Dr. Lally has been providing care to patients on the Kitsap Peninsula and Bainbridge Island for more than 15 years. “I’m excited to be able to offer a patientcentered, multi-specialty approach to treating breast cancer on the Kitsap Peninsula. Giving patients the opportunity to see all of their doctors on the same day helps alleviate a lot of the fear and uncertainty surrounding breast cancer. Patients leave with a much clearer understanding of their diagnosis and treatment plan, helping them to feel more confident and optimistic about what is otherwise a very scary diagnosis.” Dr. Lally is a board certified General Surgeon specializing in breast cancer treatment, outpatient surgery and gastrointestinal endoscopy. She graduated from Ohio University College of Osteopathic Medicine, and did her surgical training at Suburban General Hospital in Philadelphia. She is on the medical staff at Harrison Medical Center in Bremerton and the Pacific Surgery Center in Poulsbo. When not at the Peninsula Breast Center, Dr. Lally works out of her new office at the Cascade View Medical Center on 22180 Olympic College Way, in Poulsbo. Dr. Madsen has worked in radiation oncology for 16 years and specializes in breast and gynecologic cancer, head and neck cancer, prostate external beam therapy and stereotactic radiotherapy. After years of practicing in Seattle, Dr. Madsen made it her personal goal to open a cancer center to serve the Kitsap Peninsula. Dr. Madsen received her M.D. from Stanford University. While working at Virginia Mason, she played a key role in building the breast cancer team, served as head of radiation oncology and pioneered stereotactic radiotherapy for prostate cancer.

Silverdale Rotary makes donation installment to YMCA


When investing, “Face to Face” beats fingers on keyboard By Todd Tidball These days, you can purchase just about anything you want on the Internet. However, you can still benefit from a human, face-to-face experience for some purchases — such as your investments. And that’s why you may want to work with a financial professional. Unlike a computer interface, a financial professional will take the time to truly know your situation today — and then help you make adjustments tomorrow. Let’s first look at two key areas a financial professional will consider today: Your risk tolerance — By asking the right questions, a financial professional can help you determine if you’re a moderate, conservative or aggressive investor and then recommend those investments that are suitable for your risk tolerance. Your time horizon — If you’re saving for a down payment on a new home you expect to purchase within two or three years, you may want an investment that offers significant preservation of principal. But, if you’re saving for retirement, and you’re three decades away from it, you’ll likely need investments that offer the potential for growth. Your financial advisor can help you choose the mix of short- and longterm investments that can help you make progress toward all your goals. Now, let’s look at the types of milestones

that a financial professional can help you with as your life progresses: Ne w child — When you bring a new child into your life, you also add new responsibilities. Do you have sufficient life insurance? Do you plan on helping the child pay for college? If so, what college funding vehicles should you consider? A financial professional can help you answer these questions. New spouse – Whether you’re getting married for the first time, or you’re remarrying, you’ll have to reconcile your financial picture with that of your new spouse. A financial professional can review both your situations and possibly recommend ways for you to reduce debt, eliminate redundancies in your investment portfolios and consolidate insurance coverage. Career change — When you change jobs, you may have to make many investmentrelated decisions: Should you move the assets from your old employer’s 401(k) to an IRA ? Or should you roll over your old 401(k) to your new employer’s plan, if a rollover is allowed? Knowing your options when you leave your job can help you make the right choice for your retirement savings. A qualified financial professional can help you review and understand your rollover options. Retirement — Once you retire, you’ll have several issues to consider: How much can

you withdraw from your investments each year? From which accounts? Should you rebalance your portfolio to provide more potential sources of income? What about the transfer of your wealth? A financial professional who is familiar with your situation can help you make the right moves to enjoy the retirement lifestyle you’ve envisioned.

So, when you really want to invest, leave the “virtual” world behind and connect with a financial professional — someone who has gained insight into your individual needs and who has the experience and expertise to help you build, maintain and adjust a portfolio that can help you move toward your goals.

Reinvesting dividends can pay off By Adam Burleson When you invest in stocks, you want their price to go up. But of course, you can’t control the rise and fall of stock prices. However, there is a key element of investing that you can control — the number of shares you own. And in the long run, share ownership may be more important than rising stock prices in determining your long-term investment success. Of course, you might think that the advice of “buy more shares” is easier said than done. After all, not everyone can easily find a lot of extra money to invest. But you don’t need access to vast wealth to increase your share ownership — you just need to consistently reinvest your stock dividends. Just how important are reinvested dividends to wealth accumulation, as

compared to capital gains (the increase in stock prices)? Over the 135-year period from 1871 through 2003, owning stocks and reinvesting the dividends produced 97 percent of all stock market returns, with only 3 percent coming from capital gains, according to a major study done by Dr. Jeremy Siegel, one of the world’s leading researchers on stock market performance. Other studies have also pointed to the importance of dividends as a component of total returns. What are the implications of this disparity between the effectiveness of dividend reinvestment versus that of capital gains? First of all, it suggests that you may not want to spend an undue amount of time and effort in chasing after “hot” stocks, hoping for big capital gains. For one thing, by the time you Dividends, page 29

WE UNDERSTAND 28 Kitsap Peninsula Business Journal•KPBJ.com November 2011

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A 9-point checklist for business insurance

DIVIDENDS from page 28 buy these stocks, they may already be cooling off, but even more importantly, your focus on achieving large capital gains may not be the best use of your financial resources. Ultimately, the power of dividend reinvestment means, not surprisingly, that you may be able to help yourself if you look for quality dividend-paying stocks — and then reinvest the dividends, month after month and year after year. With just a little research, you can find stocks that have paid — and even increased — dividends for many years in a row. (Keep in mind, though, that not all stocks will pay dividends, and even those that do can reduce or discontinue them at any time. Dividend reinvestment does not ensure a profit or

agreement satisfied by the current policy? Assess the value of office improvements and construction (“betterments and improvements”).Does covered property include building interior “upfit” work done to make the office space suitable for tenant occupancy? If so, check the limits of coverage against a true cost of replacing all interior improvements. Review general coverage exclusions. Items listed there may surprise you. Check any coverage exclusions for vacated buildings. Policy clauses can limit or

exclude even a temporarily vacant property from coverage. Review the policy and any changes in occupancy of covered buildings. Consider the replacement value of all business machines and operating equipment. Commercial insurance professionals often use a rough estimate of $10,000 per employee when determining the replacement value of office equipment. Factor in any leased equipment, such as copiers, phone systems and computer equipment that may not be listed as assets on the balance

sheet. Consider replacement cost rather than book value when determining insurance limits. Following these tips and taking the time each year to assess insurance coverage, rather than simply renewing it automatically, will help to keep it aligned with business needs. (Editors note: By Brian S. Smith,(brian.smith@mccart.com) a commercial risk management consultant with the McCart Group in greater Atlanta and an InsuranceEdge adviser to American Express OPEN.)

Do women and men invest differently? By David Hawley Several years ago, a book titled Men Are From Mars, Women Are From Venus was quite popular. As the title suggests, the book argues that men and women are vastly different from each other, particularly in their emotional needs and in the way they communicate. While not everyone agrees with the notion that men and women might as well be from different planets, most of us would probably concur that the two genders frequently behave differently — and this divergence in behavior may also show up in the way that we invest. In fact, various studies and anecdotal evidence suggests these differences in the way that men and women invest: Men tend to trade more often than women. Men seem to buy and sell investments more frequently than women. This difference could result in an advantage for women investors. For one thing, if women do trade less, they may incur fewer commission charges, fees and other expenses, all of which can eat into investment returns. Also, by holding investments longer, women may be able to take better advantage of market rallies. During the 20082009 financial crisis, for example, men were more likely than women to sell shares of stock at market lows, which led to bigger losses among male traders – and fewer gains when some of the stock values began to rise again – according to a study by Vanguard, a mutual fund company. Men tend to invest more aggressively than women. Perhaps not surprisingly, men seem to be more willing to take risks with their investments. This trait can be both positive and negative. On the positive side, risk is associated protect against loss.) So, to help boost your share ownership, consider reinvesting the dividends back into the stock, rather than taking them as cash payments. If you do choose to reinvest your dividends, though, you will need to look to other types of investments to provide you with income, assuming you need some income from your portfolio, which may become more necessary during your retirement years. Your financial advisor can help you determine the appropriate investments to help provide this income. But in any case, if you can do without the current income provided by dividends, give careful consideration to reinvesting them. Dividend reinvestment is not a glamorous investment strategy, and it won’t help you “get rich quick,” but it can help you make steady progress toward your long-term financial goals — and that’s a key dividend in itself.

with reward, so the more aggressive the investment, the greater the potential for growth. On the negative side, taking too much risk pretty much speaks for itself. Ideally, all investors – men and women – should stick with investments that fit their individual risk tolerance. Women are more likely to look at the “big picture.” Although both men and women investors want information, women seem to take a more “holistic” approach – that is, instead of focusing strictly on performance statistics, they tend to delve deeper into their investments’ background, competitive environment and other factors. This quest for additional knowledge may help explain why all-female investment clubs have achieved greater returns than all-male clubs, according to a study by the National Association of Investors Corp., which represents thousands of investment clubs across the country.

Men may be more optimistic about the financial markets. Some studies show that men are more optimistic about key economic indicators and future stock market performance. Optimism can be a valuable asset when it comes to investing; if you have confidence in the future, you’re more likely to invest for it, and to continue investing. On the other hand, false optimism may lead to over-confidence, which can have negative results for investors. Neither men nor women have a monopoly on positive investment behaviors; each gender can probably learn something from the other. Ultimately, of course, it’s your decisionmaking, not your x- or y-chromosomes, that will determine your ability to make progress toward your long-term goals – so educate yourself about your choices, and get the help you need from a financial professional, as you invest through the years.

November 2011 Kitsap Peninsula Business Journal•KPBJ.com 29

Conditions in the insurance market present CPAs a great opportunity to enhance their business insurance coverage as well as to educate their small business clients on key policy renewal strategies. Here are several tips on enhancements to look for and other factors to consider when renewing coverage: Ask your insurance agent about insurance markets and how they affect your premiums and coverage. Obtain quotes from at least three carriers. Commercial insurance markets are in an extended “soft” period. Underwriters have been able to offer substantial premium savings and/or enhanced coverage because of record cash reserves and low loss ratios. Obtain a variety of pricing options with higher or lower deductibles, higher coverage limits and coverage enhancements. Weigh insurance needs and premiums against periodic changes in operation and inventory. All changes, subtle to drastic, need to be considered throughout the policy coverage period and at renewal. Some policies may be written to take into account seasonal fluctuations of staffing and inventory. If so, a monthly or quarterly report of these items may be required by the underwriter. Look for a policy that includes “cyber liability.” Data protection coverage addressing third-party liability is important because of the type, amount and privacy requirements of financial and other private records. General liability coverage typically does not cover the cost of notifying each party potentially affected by a data security breach. Insurance companies offering cyber liability insurance may be able to issue policy endorsements covering government-levied fines and fees for breaches. Highly regulated businesses, such as financial institutions, health care facilities and retail establishments, are most prone to these losses. Consider risk exposure to electronic business interruption. If your business depends on electronic transactions for revenue, your policy should specifically address business costs of loss of data and electronic capabilities. Evaluate the business’s responsibility to insure property leased to it. Are the coverage limits mandated in the lease


30 Kitsap Peninsula Business Journal•KPBJ.com November 2011

Energy audits: Is it time for yours? By Rodika Tollefson Building energy audits have become more popular in the residential sector in the last few years, as homeowners look for ways to save money on their power bill while making their homes more comfortable. Now, the idea is slowly taking off in the commercial sector. While many companies have already replaced their lighting fixtures to newer, more energy-efficient ones, some are taking the next step — looking at other aspects such as the building envelope, heating and appliances. “The idea is moving into the small commercial sector and I think who’s leading the way is the utilities, as they look for ways to conserve energy in all sectors,” said Callie Ridolfi, managing director for EcoFab, a Seattle-based energy-conservation company that has been working with the RePower Bainbridge, RePower Kitsap and RePower Bremerton projects. EcoFab works primarily in the residential market but Ridolfi said there has been a growing interest from the small commercial sector (she notes that in large commercial or industrial buildings, energy efficiency has already been a major aspect of operations). The company offers comprehensive audits that include an energy-performance model and a look at aspects such as insulation, window efficiency and air leaks — but she said a business or organization doesn’t necessarily need to pursue the entire package. “It may be a simple visual and energy analysis without complicated modeling, especially for things that make sense, like replacing an outdated refrigeration system,” she said. In one recent example, she said, a Kitsap church simply had its heating system evaluated, and switched to a ductless heat pump, which led to a smaller heating bill. According to the U.S. Energy Information Administration, about 36 percent of energy

use in commercial buildings is attributed to space heating and another 20 percent goes to lighting. But what makes lighting retrofits especially popular is their shorter payback period — sometimes as short as two years or less — especially due to various rebates offered by power companies. “As much as 30 to 70 percent of the cost of a (lighting) retrofit may be covered by rebates,” said Ray Grinberg, power resource director at Peninsula Light Co. in Gig Harbor. “Many businesses in Gig Harbor are taking advantage of our light rebate packages.” Before a company does the retrofitting, PenLight works with the contractor to provide an estimate of the total cost, the amount of rebate the changes will produce and the customer’s payback from energy savings over time. Grinberg said the lighting retrofits are especially popular because they require a smaller investment, but the utility offers packages for businesses that are interested in a more comprehensive scope that includes elements like the building shell. “Quite often the lighting will help subsidize some of the other upgrades that (customers) may not otherwise do on their own because they’re big-ticket items. That’s why we’ve found it helps to package them,” he said. He notes that because of the tough economy, many businesses can’t even afford to wait for two to three years for payback, which is a typical payback time for lighting retrofits. “For smaller business owners, (energy audits) may not always be where their money is best spent right now unless they’re planning a major remodel already. In that case, they may want to look at their practices and do simple things like programming their thermostat and improving the insulation,” said John Wilson, PenLight energy services analyst.

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Walter Galitzki, owner of Sun Path Construction who recently managed an energy-retrofit project for the Home Builders Association of Kitsap County building, also noticed that even a short payback of less than a year is not always enticing for some companies. “I think it’s a lost opportunity, whether for commercial or residential, because there are so many (building) areas where we can improve efficiency, and some people, like me, are into it, while others don’t want to be bothered,” he said. Although it will take a few months before actual data is available to show the HBA retrofits’ impacts, Galitzki expects to see positive results. “I think we will be pleasantly surprised at how much more energy-efficient the building is,” he said. He said while many commercial buildings don’t have the same indoor air quality issues as homes, an energy-inefficient building also impacts things like comfort. Which is why in a full energy-audit that includes the building shell, it’s important to look both at conduction and convection — meaning, not only does a building need a high enough R value for the insulation, it also needs low air leakage to be more energy-efficient. “It’s like wearing a fleece jacket. If you don’t zip it up, it doesn’t work as well,” he said. Part of the goal of the HBA retrofit, which

was completed in September, is to show consumers the advantages of energy-efficient upgrades as well as connect them with local resources and encourage local contractors to offer related services. Kitsap HBA Executive Vice President Teresa Osinksi said the size of the building should not be the deciding factor in pursuing an audit. “It really is about how you use your building, how old/inefficient the building may or may not be, and looking for improvements in terms of the dollars and cents but also for comfort, to the extent comfort issues can be addressed within budget,” she said. Within the first month of the project’s completion, she said there has already been a more than 100 percent reduction in air exchanges per hour, which will result in better air quality as well as allow for a more efficient operation of the heating and cooling system. “(This project) was designed to show as many techniques as possible as well as to show that these techniques, where needed, are doable for homeowners and business owners alike,” Osinski said. “…From a business operation standpoint, these modifications were not only completed quickly, they were done while we were open for business. We didn’t close our office for even one day during the retrofit work.”

PSE offers rebates for energy-efficient commercial lighting Installing energy-efficient lighting in a building is one of the easiest and cheapest ways to save energy and money on the utility bill. Puget Sound Energy is offering various rebates to encourage business customers to install energy-efficient lighting. These rebates include: $10-$25 for LEDs, $3-$12 for CFLs, $25 for CMH lamps and $1 per reduced-wattage T-8 fluorescent lamps (one-time rebate for projects relamping the entire building or floor). Light Emitting Diode lamps (LEDs) are fast becoming more affordable, and replacing incandescent lights with LEDs has some significant advantages, according to PSE. LEDs use substantially less energy for the same amount of illumination and they have a long lifespan, up to 20 years. LEDs are usually dimmable and they don’t have warmup time – they turn on and off instantly. Compact Fluorescent Lamps (CFLs) use a fraction of the energy and can be used nearly any place where incandescent lamps have been used for general illumination. CFLs can produce the same light as incandescent lamps yet last six to 10 times longer. They also create two-thirds less heat, making work spaces more

comfortable and well lit. The problem with these is disposal when their useful life has ended. They are required to be treated as hazardous waste. Self-ballasted ceramic metal halide (CMH) lamps are an energy-saving option for the replacement of incandescent flood lamps in track lighting and other fixture types. CMH lamps can produce the same lighting as the incandescent lamps yet last five times longer. They also produce less heat. Even if you have already installed T8 lighting, you can still reduce your energy costs more by installing reduced-wattage T8 lamps. Each reduced-wattage, 25- or 28watt, T8 lamp must be installed in place of an existing 32-watt T8 lamp and you must re-lamp the entire building or an entire floor of a building. No pre-approval is required for these commercial lighting rebates. To qualify, the commercial customer must be purchasing electricity from PSE at the site where the new lighting is installed. Rebates are limited to qualifying products. Be sure to check out the complete information on qualifying products and how to participate by visiting pse.com/ForYourBusiness or by calling a PSE Energy Advisor at (800) 562-1482.


Mayor’s summit focused on energy efficiency Bremerton’s top leaders in rental property management and community organizing attended Bremerton Mayor Patty Lent’s Mayor Summit on Oct. 11 to make a public commitment to prioritize energy efficiency. The summit kicked off RePower Bremerton, a communitywide program — funded by a BetterBuildings award from the U.S. Department of Energy — to increase energy efficiency in homes and create local jobs in the energy-efficiency industry. Bainbridge Island and the greater Kitsap County have similar programs underway. RePower Bremerton’s goals are to complete 1,000 free “HomePrint Assessments” from Puget Sound Energy

and 100 home energy assessments with EPS in city homes. RePower Bremerton, PSE and Cascade Natural Gas Corp. provide cash-back incentives to offset the cost of qualifying energy-efficiency improvements. Kitsap Credit Union, another key RePower partner, offers an energy efficiency loan program to finance improvements. RePower Bremerton benefits are available for single-family homes with one to four units. “This is a great opportunity for our entire city to become more energy efficient, create jobs and cut energy costs,” said Mayor Patty Lent. According to U.S. Department of Energy, the average home spends an annual $2,200 on energy bills. A significant

amount of energy is lost through leaks, cracks and inefficient lighting and appliances. “Rentals make up 57 percent of Bremerton housing, so the involvement of rental property owners is huge. And, many of our city’s homes sprung up during the boom of World War II, well before energy codes and standards existed,” Lent said. “There is a lot of potential to make all Bremerton homes warmer, safer and more comfortable and reduce energy bills.” Hilary Franz, a city of Bainbridge Island council member spearheading the RePower program, and soon to become regional director for the environmental advocacy group Futurewise, along with former Bremerton City Council member and local

Installation of solar energy system underway at PUD 3 Operations Center Installation is underway near Shelton for what may be one of the largest solar power arrays so far in Western Washington. A 225 kilowatt photovoltaic system is being placed on the site of Mason County PUD No. 3’s Johns Prairie Operations center. The operations center will be the site for the PUD 3 warehouse; field operations such as Shelton line workers; vehicle

City planner to receive the Barbara Grace Award

A&PC will maintain and operate the project, selling the output to the PUD. PUD 3 will also receive “renewable energy credits” from the project, which because of its nature will be counted at twice their value. This will help meet a portion of the PUD’s renewable energy requirements under state law. PUD 3 commissioners approved the agreement with A&PC in June. Linda Gott, PUD commission president, noted that the cost of the project is reasonable when compared to other renewable energy projects. Gott said that she has received generally positive public response to the proposal, and she is interested in the opportunity to use the installation to educate PUD customers on the use of solar energy in Mason County. By using electricity generated by the solar power system, the PUD will avoid purchasing an estimated 189,000 kWh annually. The alternative power production will also reduce the PUD’s carbon footprint by about 13 tons per year.

Kitsap Humane Society is going green The Kitsap Humane Society (KHS) enters a new realm of social responsibility by using Green Pet Compost Company’s services. Green Pet Compost Company has biodegradable waste bags, picks up dog waste and composts it. The average dog's output per day is 0.75 pounds of waste. KHS at any giving time may have 50 to 60 dogs in the shelter, equaling approximately 45 pounds of dog waste per day. Typically, volunteers and staff pick up the waste using donated grocery bags and put it in the trash. Now, thanks to the new partnership, dog waste will be picked up using compostable bags that won’t harm the environment. “This is a really exciting way for KHS to do our part for Puget Sound and Kitsap County,” said Sean Compton, executive director. “We obviously have the volume of dogs and waste, so it just makes sense to partner with Green Pet Compost Company to make some good of it,” he continued. For more information, visit www.greenpetcompostcompany.com. November 2011 Kitsap Peninsula Business Journal•KPBJ.com 31

City of Gig Harbor Planning Director Tom Dolan announced that Senior Planner Jennifer Kester will receive the Barbara Grace Award from the Washington Chapter of the American Planning Association (APA). Kester will formally receive the award on October 21 at the joint Washington State/Oregon State APA annual meeting in Portland. The Barbara Grace Award is given annually to a professional planner who has distinguished him or her self with dedication to public service and professional accomplishment, who help “Make Great communities Happen” and represent the future leadership of the planning profession. Kester has over 10 years of professional experience, nine of those years with the City of Gig Harbor. In her current position, she is the lead planner for long range planning activities for the City. During her career with Gig Harbor she has been the lead planner on large development projects such as St. Anthony Hospital, Uptown Shopping Center and the Costco retail project. Dolan nominated Kester for this award because of her multiple accomplishments on behalf of the City and her leadership in the Planning and Development Department. “I was pleased to nominate Jennifer for this award and very happy that her peers chose her for this prestigious award,” said Dolan. The Gig Harbor City Council will recognize Kester’s receipt of the award at its Nov. 14 meeting.

maintenance, repair and fueling; engineering, telecommunications, the meter shop, transformer and substation maintenance; and various administrative functions. No additional engineering or structural enhancements were necessary to accommodate the solar panels, which are being placed on the roof of one of the vehicle storage buildings. The array will cover approximately 22,000 square feet. PUD 3 is under contract with Adolfson & Peterson Construction (A&PC) of Minneapolis, Minn. and its Tacoma-based subsidiary, Rushforth Construction for installation of the nearly $1.24 million solar energy system and a power purchase agreement for the output. A&PC is funding 61 percent of the project and obtaining federal and Washington State tax credits and renewable energy incentives. PUD 3 will pay 39 percent of the capital costs, and have an option to purchase the solar power system outright at the end of ten years.

rental property owner Jim Adrian, were guest speakers at the Mayor’s Summit. RePower Bremerton is a communitywide program that helps area residents save money through energy efficiency; increase the comfort, health and safety of local homes; and create local jobs. Funding for the program comes from a BetterBuildings award from the U.S. Department of Energy. The city of Bremerton was one of 20 communities in the nation selected to receive this funding for energy efficiency. To learn more about RePower Bremerton, including available cash-back incentives, news and upcoming events, visit repowerbremerton.org or call (877) 741-4340.


November @ 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.

I am very happy to be named President, Port Orchard Chamber Greg Oldham of Commerce. Our Port Orchard Chamber board is energized and 2011-2012 President focused on serving our members. You can feel the excitement at our lunches. During these challenging times business to business still happens. Now is the time to get to know other local business owners with face to face and voice to voice contact. What better way than from within the Chamber? The framework is in place. We will do all we can to help our members network and grow their business. It took me a while to get comfortable with extending my hand and introducing myself. The Chamber is a great place to build personal relationships with other business owners you know, and don’t know yet. Business is a contact sport. Who have you made contact with today? Challenge yourself to expand your circle of influence. Attending a Chamber event makes it easy. I look forward to seeing and meeting you. Please look for me and introduce yourself. It won’t hurt a bit!

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Port Orchard Pavilion, 701 Bay St. — 8 a.m. coffee and muffins and 8:15 a.m. business seminar. On Nov. 16th, 8 a.m. — Excel Software, presented by Debbie Seamans. Seminars are free to Chamber members and $5 for nonChamber members. RSVPS’ are not required, but encouraged. Please call the Chamber office 360-876-3505.

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SPOTLIGHT ON A MEMBER Diana Labrum/Personal Best Hypnosis Vashon Island where she would remain for twenty-five years. Diana now enjoys the rural atmosphere and small town elegance of Port Orchard with her husband of thirty-five years. Together they have seven adult children. A few of her interests outside of work include attending community events, engaging in politics, reading and gardening. While Diana’s favorite part of being Chamber member is the ability to network and socialize at our great events, her favorite part of work is helping people better their lives. Stop by and talk to Diana about how hypnosis can work for you.

Thursday, November 10th, 2011, 11:30 a.m. Location: McCormick Woods Banquet Room, Port Orchard Program: John Powers, Executive Director of Kitsap Economic Development Alliance New to his position at KEDA, John’s career spans thirty years of senior leadership roles, and advisor assignments, in private enterprise, professional practice, public service, and civic organizations. A graduate of Notre Dame University’s School of Business, and a twentyfive year member of the Washington Bar, Powers’ professional experience includes: Owning and operating businesses in the insurance, finance and real estate sector; Mayor, Spokane Washington; CEO Enterprise Seattle; Managing Director, Colliers International, State of Washington; and Founder of Powers Economics, a business and economic development consultancy Our Raffle Recipient is Kickin’ it for Kinsey/Jingle Bell Run and Luncheon Sponsor is American Family Insurance/Barry Doll Agency. Please reserve by November 8th. Chamber members are $20 if prepaid and $22 at the door, Non chamber members cost is $22 and they must prepay. RESERVE Today at www.portorchard.com or call the Chamber office at 360-876-3505.

2011 SK Man and Woman of the Year and Small Business of the Year In October, the Port Orchard Chamber awarded Dave La Rose, Superintendent of South Kitsap School District the Man of the Year Award, Sheila Cline, Community Volunteer the Woman of the Year Award and Olde Central Antique Mall Small Business of the Year. Dave is a strong advocate for the whole child and believes that in order for EVERY child to succeed, we must ensure that they are healthy, safe, engaged, supported, challenged and hopeful. When a student need interferes with their ability to learn, SKSD has “campaigned” on behalf of their students and has developed partnerships with community agencies, health organizations, mentoring programs, and faith-based leaders to provide the resources students need in order to succeed in school. Sheil a is the driving force behind the Port Orchard Jingle Bell Run/Walk a benefit for the Arthritis Foundation. After her daughter, Kinsey, was diagnosed with juvenile arthritis, she became not only a volunteer but an advocate for the Arthritis Foundation. She has made it her goal to not only raise funds but to raise awareness that kids get arthritis too. Bobbie & James Stewart are the owners of the Olde Ce ntral Antique Mall. She feels it is important that the Mall be open seven days a week and has employees to take care of customers and dealers. The business has become a destination for tourists, boaters and area residents outside of Port Orchard. Despite the economic downturn the business is doing very well. Bobbie is a very active member in both the Port Orchard Chamber and the Port Orchard Bay Street M erchants Association. She is the POBSA Secretary and volunteers, coordinates and participates in all the POBSA events. She is a regular attendee of Chamber functions and donates a beautifully prepared basket as a donation every month for the raffle.

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Old Bremerton Gasworks site getting more attention, proposed for national hazardous cleanup listing the nation. The site was bad enough to be ranked a “1” — the highest priority under the state’s hazard ranking system. The City of Bremerton received over $400,000 in EPA Brownfields grants in 2006, for examining soils for potential petroleum and hazardous waste contamination at the sites. It was reported in my June 2006 article at http://kpbj.com/headlines/environment/2006-0605_six_washington_projects_net_116_million_in _latest_round_of_epa_brow. The 3.7-acre site is currently owned by the McConkey family and Natacha Sesko. However, officials say the pollution was deposited prior to their ownership. The McConkeys have been extremely forthcoming and instrumental in the several yearlong investigations and continue working closely with the EPA. Immediate past owners were Paul & Margaret McConkey, Theodore & Marion Blomberg, and E.B. & Ethel Lent. EPA, the Washington State Department of Ecology, Cascade Natural Gas, Washington Department of Natural Resources, and the U.S. Coast Guard have

Much like Gasworks Park on Lake Union in Seattle, this plant became obsolete and ceased operation in the 1950s after the Northwest started importing natural gas via ships and then pipelines. The former coal gasification plant has now been proposed for placement on the U.S. Environmental Protection Agency’s (EPA) list of the most contaminated sites in

been involved in assessments of the site. A more recent focused beach cleanup was conducted when coal tar creosote spilled into Sinclair Inlet from a pipe of the defunct coal-gasification plant, according to the Coast Guard. The source of the leak, first reported on Oct. 5, 2010 was a subsurface concrete pipe from the old Bremerton Gasworks plant.

The waste was spilling into beach sediments and marine water, EPA and Coast Guard investigators said, but the origin of the pipe and the amount of the waste spilled had not yet been determined. The EPA and the Coast Guard then worked with property owners and others on an excavation plan. Nearby shellfish beds were closed and signs posted at nearby beaches, warning visitors of the spill. Three days after the first report, Joanne LaBaw, EPA Brownfields program site assessment coordinator, and Kathy Parker, EPA’s On Scene Coordinator for the Emergency Response Unit met with City of Bremerton Mayor Patty Lent and myself to discuss the site’s history, possibility of national priority listing based on levels of contamination, and the current situation. The Mayor was very supportive of the work these federal agencies provided. Contamination in beach sediments, upland soils and groundwater requires cleanup well beyond actions taken to date. Creosote has been known to cause a variety of problems, including cancer, liver problems and respiratory problems. Sediments, soils, and groundwater at the site are contaminated with polyaromatic hydrocarbons from coal

gas tars, along with heavy metals and benzene. Sources at the site could contaminate the Washington Narrows, a part of Puget Sound designated a national priority as one of the nation’s great water bodies. Two species of federally listed endangered or threatened fish live near the site and Puget Sound is used as a sport and commercial fishery. The Suquamish Tribe has used the area as a subsistence fishery. If the Bremerton site is added to the National Priorities List, EPA will work in close partnership with the Suquamish Tribe and government agencies to clean up the site. A final decision regarding inclusion of the Location on the National Priorities List will occur after consideration of public comments, which will be accepted until Nov. 16. If it is placed on the National Priorities List, the site will be managed under EPA’s cleanup program, Superfund. More information will be accessible at http://yosemite.epa.gov/R10/cleanup.nsf/s ites/bremerton-gasworks or contact Joanne LaBaw (labaw.joanne@epa.gov), Site Assessment Coordinator, 206-553-2594, and Ken Marcy (marcy.ken@epa.gov), NPL Coordinator, 206-553-2782.

November 2011 Kitsap Peninsula Business Journal•KPBJ.com 33

By Kathleen Byrne-Barrantes Bremerton has historically been a working waterfront community, and similar to other cities around the country, has the potential for hazardous waste and petroleum contamination. These sites also provide an opportunity to develop new public access, marina expansion, and boat maintenance facilities as well as to facilitate significant private investment in marine industrial development. The properties located at 1725 Pennsylvania Avenue next to the Port of Washington Narrows in Puget Sound were used for various industrial purposes starting in the 1920s including; a coal gasification plant, fueloil storage and distribution company, sandblasting/painting/electroplating operation, concrete manufacturing, vehicle repair, painting, and a salvage yard.


Toyota Highlander: A perfect family fun SUV By Bruce Caldwell We attended a family wedding in Cannon Beach, Oregon, the last week of September. Weather conditions can vary dramatically (which they did) and we were charged with transporting huge cartons of glassware for the reception centerpieces. We needed full wardrobes to accommodate temperature swings and activities ranging from hiking/beachcombing to dinner parties. As the senior members of a large rental home we were the de facto provisions providers. We hoped to do all this driving/schlepping in as much comfort as possible. Fortunately we obtained a 2011 Toyota Highlander LTD for the week, which ably met all our needs. The Highlander is a multipurpose, do anything, go anywhere vehicle and we were delighted with its performance. Priority number one w as a safe, comfortable long distance cruiser. Except for the elevated ride height we could have been driving a Toyota Avalon. The cabin ambiance, spaciousness, and material quality made the trip a pleasure. We had room to spare for all our cargo. The sevenpassenger capability made the Highlander a frequent choice for hauling family and friends around Cannon Beach. We enjoyed spectacular summer-like weather for most of the trip (including the

outdoor ceremony), but the last night and departure day/return trip were in semihurricane conditions. That was when we really appreciated the sophisticated all-wheel-drive, road-holding prowess of the Highlander. Walkaround: The Toyota Highlander was freshened up for 2011, so the 2012 models are very similar, except for grille and taillight changes. Third row seating is now standard. The Highlander is a pretty traditional SUV in terms of styling. It’s a conservative, finelooking vehicle with nothing to complain or rave about. Out Limited Highlander came with handsome 5-spoke 19-inch alloy wheels and P245/55R19 tires, which provided excellent traction in downpour conditions

COME SEE THE 2011

34 Kitsap Peninsula Business Journal•KPBJ.com November 2011

TOYOTA HIGHLANDER

and a smooth highway ride. Interior: The interior is a Highlander highlight. Material selection and execution are excellent. The cabin exudes quality. The seats were comfortable and supportive with power lumbar. The tilt/telescopic steering wheel made finding an ideal long distance driving position easy. The wheel had all the usual auxiliary controls, but I would have preferred a little extra thickness. Interior storage bins and cup holders were large and plentiful. The locking glovebox was huge. The top of the center console bin had a wide padded armrest. The audio/navigation system worked well, but I wasn’t thrilled with the controls. The control knobs for the front heated seats were quite small. A medium-large sunroof was great for driving along Hwy 101 when the sun was out. Second row seating consists of a 40-20-40 split, which is great for the outboard passengers. The middle position is a temporary perch, but it can also be folded out of the way for additional third row access. Third row seats are folding 50/50 ones that offer decent room and comfort—best for children, but tolerable for adults. Second row seats have substantial travel adjustment, which helps customize legroom. A great third row feature is the side windows electric defrost grids. Cargo space and versatility is great. The seats fold flat. There is a window shade style cargo cover that can be stored underneath the floor. The power tailgate is a nice luxury feature. The Highlander interior is comfortable for all passengers. Under The Hood: Toyotas are known for their precision power plants and the 3.5-liter V6 in the Highlander is no exception. The 270 horsepower (248 lb-ft torque) V-6 is smooth, quiet, and well matched to an electronically controlled 5-speed automatic transmission.

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The Highlander weighs a solid two tons, but the engine handles the mass nicely. We’ve driven Highlanders off road and they’re very capable with several sophisticated features such as stability and traction control, hill start/downhill assist control, electronic brake force distribution/brake assist/smart stop technology, and a snow mode (activated by a console mounted switch). Ground clearance is ample and approach/departure angles are excellent. The Highlander easily conquers terrain few owners will ever attempt, but that over engineering pays off during foul weather and snowy winter travel. The V-6 Highlander is EPA rated at 17 city/22 highway mpg. We got almost 25 mpg on straight freeway driving from Oregon and a little over 21 mpg in mixed driving that favored highways. Behind The Wheel: The Toyota Highlander provided a thoroughly pleasant driving experience for both hundred-mile stretches and around town errands. It’s an ideal vehicle for family outings. The blend of utility and comfort is excellent. The ride is muted and controlled. The Highlander isn’t a sports car, but it’s stable and confident. Build quality and noise suppression are excellent. The Toyota Highlander is a well-engineered, solid SUV. We gave the wipers, heater, defrosters, headlights, traction control, and brakes a thorough testing in the stormy weather. We feared trees around the rental house might topple, but we never doubted the Highlander’s ability to get us home safely. That’s a key reason to drive a Highlander. Whines: The navigation and audio controls were a little disappointing compared to the overall interior caliber. We rated their ease of use/intuitiveness as below average. The controls for the heated front seats were abnormally tiny. Bottom Line: We were thrilled to have the Toyota Highlander LTD for our Oregon adventure. The flexibility and capability of the vehicle let us enjoy the trip and all the family interaction that encompasses a big social event. Driving the Highlander was a joy in good weather and reassuring during challenging conditions. The Toyota Highlander is an extremely capable multi-purpose vehicle that’s a pleasure to drive.

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Jeep Liberty: A compact SUV that will go anywhere

The dash and tops of the doors, where some drivers may rest their arms, are totally plastic with no soft-touch surfaces The only padded surfaces are on the door armrests, and although the center console armrest has a little give, it’s not padded, either. The Liberty features a new steering wheel with redundant audio controls. Instrumentation is easy to read at a glance, and all the controls are simple to use and pretty straightforward. There is a useful cubby on the center of the dash top — perfect for a pair of sunglasses — and a hefty grab handle just above the small glove box. The center console is deep, with a removable tray on top. There’s a small storage tray next to the shift handle. In 4WD models, a small electronic switch replaces the previous generation’s transfer case lever. The optional canvas Sky Slider sunroof is much larger than a standard sunroof, and creates an open air feeling — especially for rear seat passengers. However, it also generates wind noise at highway speeds when closed. That’s important because without the Sky Slider, the cabin is surprisingly quiet. Cargo space is about average for the class. Second-row seats fold flat in an easy one-step process, yielding 60.9 cubic feet of cargo space. With the seats up there is 25.2 cubic feet — room enough for groceries and kids together. There’s a shallow under-floor storage area with a reversible cover that’s carpeted on one side and formed into a plastic tray on the other. Cargo tie-down hooks are also provided for securing loose items. The load floor is fairly low, making it easy to load heavy cargo. The rear glass opens separately, so groceries can be set inside without opening the tailgate. Under The Hood: The Jeep Liberty is powered by a 3.7-liter V6 that delivers 210 horses. A 4-speed automatic is standard. When it comes to fuel economy, the Liberty’s weight and powertrain give it numbers on the lower end of the class: The EPA rating for the Jeep Liberty 4WD is 15/21 City/Highway — pretty close to our own experience.. The two four-wheel-drive systems, Command-Trac II and Selec-Trac II, make

the Jeep Liberty highly capable off road, and they are further aided by Hill Start Assist and Hill Descent Control. Behind The Wheel: The Jeep Liberty delivers an overall pleasant driving experience, with a generally firm ride that smoothes over most bumps, and is never punishing — even with the available 18inch wheels. Handling-wise, the Liberty is relatively tall and heavy, so it’s not as nimble as some of its carbased compact SUV competitors — leaning heavy in turns and fighting to regain equilibrium

in quick direction changes. Off-road however, the Liberty is a star. With high approach and departure angles and low-range gearing for 4x4 models, it can crawl over large rocks and logs with ease. Fourwheel-drive models have Hill Descent Control, which pulses the brakes through the ABS to limit the vehicle’s speed when driving down steep grades. Hill Start Assist is also standard. It holds the brakes on hills when the driver releases the pedal to prevent the vehicle from sliding backward. Whines: In these days of 6, 7, and 8-speed automatics, the 4speed is pretty antiquated, and we’re not sure it exactly wrings the best performance out of the V6 — which could use the help. Bottom Line: The Jeep Liberty delivers superior off-road capability, more towing capacity, and more cargo space than most of its competitors. In my view, the Liberty is a good choice for small families or buyers that tow boats, small travel trailers, or enjoy other outdoor activities. The downside is it’s weight, which detracts from the handling and fuel economy of most of its rivals. However, if off-road capability is important, the Liberty is second to none.

2011 JEEP LIBERTY GO ANYWHERE, DO ANYTHING™

900 West Hills Blvd, Bremerton, WA 98312

360-377-4418 www.westhillscjd.com

November 2011 Kitsap Peninsula Business Journal•KPBJ.com 35

By Lary Coppola The Jeep Liberty, true to Jeep’s legendary off-road heritage, is a practical SUV that doesn’t hesitate when leaving the blacktop. It comes with a choice of two Jeep Trail Rated four-wheel-drive systems that offer strong off-road prowess. Reminiscent of the rugged ‘90s-era Jeep Cherokee, it’s tall and angular, maintaining its bold, upright styling. However, unlike the old Cherokee, while the Liberty maintains the ruggedness that made Jeep famous, it also delivers a smooth, relatively quiet ride. Model Lineup: The Jeep Liberty comes in three trim levels. The Sport 2WD, Sport 4WD, Limited, and Limited 4WD. All are available in two- or four-wheel drive versions. The Renegade is available only with four-wheel drive. The only engine is a 210-horsepower 3.7-liter V6, mated to a 4speed automatic transmission. Safety features on all Liberty models include dual front airbags, head-protecting side-curtain airbags with rollover sensors, front side airbags and active front-seat head restraints. Active safety features include anti-lock brakes with brake assist, hill start assist, traction control, and electronic stability control with rollover mitigation. The antilock brakes have rough road detection — when rough conditions are detected, the system holds the brake pulses longer to better slow the vehicle. Hill descent control is standard on 4x4 models. Optional safety features include trailer sway control and rear obstacle detection. The Liberty Renegade includes skid plates for the transmission, transfer case, front suspension, and engine; transmission oil cooler; tow hooks; and fender flares. It is outfitted for more rugged off-roading with options similar to those on the Sport. Walkaround: The Liberty is undeniably a Jeep. Intended to attract an even split of male and female buyers, its aforementioned 90’s era Cherokee styling also fits with the current Jeep design ideal. Jeep’s iconic seven-slot grille is the most noticeable aspect of the front end. The grille is body colored on the Sport and chrome on the Limited. The front fascia is body color on all, with a removable front air dam offering more off-road ground clearance. The side view of the Liberty showcases tall windows in a squared off cabin. Chrome is limited to side trim and roof rails — which are black on the Sport. Attempting to give the Liberty the same open feel as the Wrangler, is the Sky Slider sunroof — a canvas power sunroof Jeep claims is four times the size of an average sunroof. One notable rear feature is the missing exterior spare tire, which is mounted inside. The rear cargo area is accessed via liftgate and separate opening rear glass. Interior: The Liberty’s interior is functional, but not luxurious. There’s lots of front seat headroom, and while most drivers will like the high seating position, taller drivers will want more front legroom. The side mirrors are big and the cabin has a lot of glass, offering good rear visibility.


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 Jason Parker

36 Kitsap Peninsula Business Journal•KPBJ.com November 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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VOTE YES ON I-1183

OBAMACARE

Like thousands of local restaurant owners, I support a YES vote on 1183. And I’m not one bit surprised by the misleading ads that big, out-of-state liquor distributors are running against Initiative 1183. Initiative 1183 is supported by restaurants, grocery stores, wineries, public safety officials and community leaders across our state. 1183 will benefit local restaurants, our employees and our customers. 1183 will get the state out of the business of promoting and selling liquor and bring needed competition to the marketplace, resulting in better prices, better selection and better service for restaurants and consumers alike. Washington is one of the few states requiring restaurants and consumers to purchase liquor from the government at monopoly prices. 1183 will finally let Washington join 42 other states that allow consumers to purchase liquor at licensed grocery or retail stores. For restaurants like mine, that means lower costs, better selection and better customer service. For state and local governments, 1183 will generate millions more every year to fund vital public services at a time when it’s needed most. As to the opponents’ scare ads — don’t believe them. They’re paid for by big out-ofstate liquor dealers who want to prevent competition — not protect public safety. Their ads have been called false and deceptive by leading newspapers across the state. The fact is, other states that allow private stores to sell liquor are no less safe than Washington — and many have lower per capita alcohol consumption than we do here. I-1183 is a common sense plan for Washington. Please join Washington restaurants like ours in voting YES on 1183.

I saw that the State Supreme Court stopped the City of Seattle from blocking our Attorney General, Rob McKenna’s suit against the Federal Government to protect the citizens of Washington from this illconceived ObamaCare plan. Hurray for McKenna! But I think it is high time that our politicians quit hiding behind the governmental curtain and put their names front and center. I want to know names. I want to know the names of the people that signed off for the City of Seattle to bring this lawsuit in the first place. By knowing their names, we can then know who we want to campaign against when next they come up for election!

Amy Igloi, Owner Amy’s On The Bay Restaurant & Bar

Pauline Cornelius Olalla

CK SCHOOL BOARD I am endorsing & supporting Christy Cathcart for re-election to the CK School Board She has been a vigorous and insightful school board member during her time on the Board. She is not a “yes” person but asks the right questions and some times ruffles the feathers of her detractors and peers. She has been a great steward for fairness and honesty on the School Board! She is not afraid to speak up about issues that affect students and the workings of the District and the Board of Directors. We the Citizens of Central Kitsap County have invested much in Christy and do not need a novice on the School Board, especially in these critical times, Budgets Operational Funds, etc., — all of the pressing issues currently facing the School Board. We do need the knowledge and experience that Christy brings. Her opponent, Jeanie Schulze, on the

other hand is, in my opinion, a “Yes” person who follows others, not wanting to create waves. She Is not the right person for the job. I know this through many negative professional experiences I've had with her over the years. A letter to the Editor proclaimed that Ms. Schulze is a good listener and will keep discussions focused! We need and deserve more than a listener and facilitator! In my opinion she has her own agenda and I think its to try and unseat a dedicated, productive, and independent thinker who gets, and has gotten, results. When you get your ballots I urge you to re-elect Christy Cathcart to the CK School Board! She gets the Job done !!! Hank Mann-Sykes Silverdale

OCCUPY MOVEMENT If people in this country have been paying attention, it should be no surprise that unrest is happening in our cities clear across the country costing cities thousands (if not millions) of dollars for extra police etc., that they can ill afford. This is supported by none other than President Obama, Nancy Pelosi, and other Democrats. Open your eyes Americans! Obama's inspiration was/is Saul Alinsky who wrote the books "Rules for Radicals" and "Reveille for Radicals" laying out the ground rules for "taking over." This has been a country of law and order and we can't allow all this lawlessness or we will end up like the European countries that are in turmoil. I don't recall in my lifetime where the President openly supported unrest in the streets. Only one party will stand firm against lawlessness and that isn't the Democrat Party! Norma L. Card Bremerton


Are we nearing the tipping point on minimum wage? By Don C. Brunell, President Association of Washington Business In January, Washington’s minimum wage will crack the $9 mark and we will once again be No. 1 — the state with the nation’s highest minimum wage. Of course, some think that’s good news. Ensuring that people can support themselves and their families is a laudable goal. But there’s a problem: It’s called the law of unintended consequences. Sometimes, an action causes the opposite of what it was intended to do. We are perilously close to that when it comes to the minimum wage.

Requiring that employers pay a higher wage does not magically provide them with the money to do so. With our state’s economy faltering and unemployment above nine percent, adding more costs to employers, especially small businesses teetering on the brink, doesn’t create more jobs. In fact, it may do just the opposite. As economics professor and author Dr. Bradley Schiller recently wrote in The Wall Street Journal, “The overwhelming evidence is that higher minimum wages reduce the availability of jobs at the lowest end of the job market.”

“Shovel Ready” means never ready

entering the job market. In his study of minimum wage jobs over time, Dr. Schiller found that most adults work at minimum wage jobs only a short time; that over 70 percent had moved onto higher paying jobs within two years. My view of the minimum wage is shaped by my personal experience. In the summer of 1963, I bused tables, scrubbed pots and peeled potatoes at a family-owned restaurant and bar in Butte for minimum wage — $1 an hour. The dad was the greeter and bartender, the mom was the cook and bookkeeper. The oldest son was the afternoon shift cook and a daughter worked as a waitress. More than once — usually around tax time — the mom told me my $20 pay would be delayed and asked that I trust them for the money. They always made good on my pay, but it was a struggle for them, especially when times were bad and costs increased. Eventually, they hit a tipping point. When they could no longer absorb additional costs they lost their business. When the restaurant shut its doors, there were no newspaper headlines, no press conferences, no political debates. Only a simple sign on the door that said, “Closed.”

November 2011 Kitsap Peninsula Business Journal•KPBJ.com 37

By Jerome Stocks We hear a lot these days about the need for “shovel ready jobs“ and the lack of them. For those who want answers, not excuses, let‘s visit some of the places where job preventers work. First Stop: The home of the President of the United States and his Administration‘s Environmental Protection Agency. This group steals more jobs and wealth in one week than a corporate jet full of greedy bankers in a lifetime. Right now, thousands of American local, regional, and state governments are willing to hire private contractors and their employees to build projects and thereby create jobs. But it takes years, if ever, to get permission to build infrastructure using the federal environmental approval process (NEPA). If the president simply uttered the phrase “we‘re gonna‘ drill in the U.S. and drill now“ the worldwide cost of oil would probably plummet giving greater economic relief to our middle class than all the congressional bills combined. But “First Stop: so far he‘s said the opposite making OPEC happier The home of the President and wealthier than ever. Would we actually need to drill? Probably not, but attitude matters. of the United States and his Does a $5 loaf of bread and a $5 gallon of milk got Administration‘s Environmental you down? Thank the $4 per gallon cost of fuel Protection Agency. which has increased the cost of food delivery. This group steals more What if workers were caught in a mineshaft and jobs and wealth in one week running out of air. How long would it take to get the emergency equipment into the field to start digging than a corporate jet full of them out? Hours, maybe less. greedy bankers in a lifetime.” What would we do if the EPA showed up and said it would take years to get to the permits for this life saving work? We‘d run them over with our trucks on our way to save those lives. America is said to be in an economic and America is said to be in an unemployment emergency right now, but we are economic and unemployment acting like business usual and allowing the emergency right now, but we regulatory agencies to as take up to ten years or more are acting like business as to approve projects and identify “mitigation“ to usual and allowing the offset them. People are standing by ready to create jobs by regulatory agencies to take up to ten years or more to the hundreds of thousands by drilling tomorrow, approve projects and identify and building infrastructure critical to our future, yet if they did they would pay huge fines, and “mitigation“ to offset them. possibly go to jail for violating the environmental regulations. In today‘s America creating jobs without the proper regulatory approvals is often illegal. Does that sound logical to you? By contrast: The Los Angeles home of former California governor Pete Wilson. After a California earthquake in 1994, then Governor Wilson declared an emergency and promised to rebuild the collapsed Santa Monica Freeway inside a year. Impossible, said the regulators. The permits and environmental studies alone will prevent us from starting for several years. Wilson‘s regulators got his message: Make it happen. And it indeed did happen. Now almost 20 years later the President of the United States says he is going to put America back to work by throwing money at shovel-ready jobs. But nothing in the “Jobs Act“ or any of the other economic stimulation bills has directed the regulators about this national priority and that “shovel ready“ must not mean 10 plus years of analysis and study. Maybe the President needs to call Pete Wilson. (Editor’s Note: Jerome Stocks is a City Councilman and Deputy Mayor of the City of Encinitas, California. He also serves as Board Chairman, of the San Diego Association of Governments, and a Board Member of the North County Transit District.)

We need to have a full and open discussion of this important issue. Unfortunately, anyone who dares challenge the notion of hiking the minimum wage is branded as heartless and any politician who even suggests looking at the minimum wage is attacked as anti-worker. While that may be effective electioneering, it doesn’t help put people to work nor does it help struggling employers. As our minimum wage is set to automatically increase to $9.04 for 2012 — with $10 on the horizon — we may be approaching a tipping point where employers stop hiring. This would be particularly hard on young or unskilled workers. After all, why pay a beginner $10 per hour when experienced workers are unemployed? And the wage itself is just the beginning. After adding in the other employer costs such as unemployment, workers’ compensation taxes, social security and other payroll costs, the out-of-pocket costs jump to over $11 an hour. But as economist Thomas Sowell wrote, “Unfortunately, the real minimum wage is always zero, regardless of the laws, and that is the wage many workers receive... because they lose their jobs.” Part of the debate over the minimum wage centers on its purpose. Some argue it must be high enough to support a family, while others point out that it’s meant to be a floor — a minimum — for unskilled people


Medical Marijuana: A quandry for government and business

38 Kitsap Peninsula Business Journal•KPBJ.com November 2011

Nowhere does the law of unintended consequences rear its head higher than the current debate over medical marijuana. On one side is the federal government, which says Pot is illegal — period. There is absolutely no room for debate of any kind, nor any accommodation for its proven medical uses. In Eastern Washington, the U.S. Attorney has been active in the prosecution of users and distributors, and made it abundantly clear that local governments allowing state law governing dispensaries and collective community gardens to prevail over federal law, puts government employees and elected officials alike at risk for feeling the heavy wrath of Uncle Sam for doing so. Meanwhile, a well-meaning, but inept state legislature passed a confusing and basically ineffectual statute to try and deal with the situation. The Governor, in an attempt to protect state employees from the wrath of the feds, vetoed parts of it that could put state employees at risk for arrest and prosecution, but let other parts of it stand. Those parts basically allow marijuana to be sold openly in licensed dispensaries to people with a prescription written by a physician. A special card is also required to be able to buy medical marijuana at a licensed dispensary. In addition, the law allows collective community gardens, where marijuana can be grown openly in small quantities, by people in possession of the required medical marijuana card. The end result is a law that’s about as clear as mud, that no one understands with any degree of certainty, and that remains untested legally.

This has put local governments between the proverbial rock and a hard place. Many local governments — including ones in Kitsap County — have imposed moratoriums on issuing permits for dispensaries and gardens, and are exploring ways to use zoning laws to keep them out. One small city in King County, which is an enclave of the very wealthy, allows dispensaries — but only in the very highest rent district, where it doesn’t make financial sense for an operator to locate. While that’s an imaginative and somewhat innovative use of LARY COPPOLA zoning, it won’t work in most The Last Word areas of the state. Most thinking people, as well as those who have any kind of personal experience with marijuana — which is most likely a majority of Baby Boomers, Gen-X, and Gen-Yers — accept the fact there are some valid medical uses for pot. This has led to a new crop of businesspeople known as “Ganjapreneurs” — primarily drug dealers trying to masquerade as legitimate business owners. I’ll never forget a pair that came into my office trying to convince me to allow them to set up shop in Port Orchard. One had lightening bolts tattooed on both of his temples, and the other had a skeleton head tattooed on his neck. Both reeked of pot and had difficulty stringing two sentences together. Call me what you want, but I found it rather difficult to take these guys seriously.

Meanwhile, local governments grapple with a steady stream of residents from across a broad political, age and economic spectrum coming to share their personal experiences with the benefits of medical marijuana any time anything to do with it is on the agenda. In my experience, many elected officials aren’t unsympathetic to their plight, but are forced to balance that sympathy with federal law and the best legal interests of their local government. This also brings out organized legalization advocacy groups. However, these groups could much better serve their cause by sending articulate, informed, and professional appearing folks to testify, instead of people who look, act, dress, and speak like stoners. But a conversation I had with my insurance agent recently brought out another side of this issue that I’m sure has never crossed the minds of federal or state legislators. I know it took me by surprise. She shared a story of a claim she is currently processing. It seems one of her clients had the required card to grow medical marijuana for personal use, and was doing so at home. Someone broke into the house, and stole the plants from the hydroponic garden — and not much else, although there were numerous other items of significant value — jewelry, electronics, etc. — that could have been taken, but weren’t. Her client filed a homeowners insurance claim for the value of the plants, plus for the damage to the home caused by the break-in, minus the $500 deductible. The insurance company is seemingly in a legal quandary about whether or not to pay the claim. On one hand, there is a clear argument that damage was done to the

home because of the break-in, and the claim is valid under the policy that’s in place. But since what was stolen is clearly illegal under federal law, but not state law, what does the company do? And if it did decide to pay the claim, how does it establish a true value for the stolen plants? Paying the claim also sets a definite legal precedent for future claims of this type. Denying it opens the door to a lawsuit that will be well-publicized, litigated for years, and could ultimately open the flood gates for anyone who ever grew marijuana — for medical purposes or not — to file claims for stolen plants, even if they were not on their property. And then there’s another wrinkle to this. Any homeowner can be sued by a burglar who gets hurt d uring a break-in — something more common than you might imagine, when the burglar is caught. If stealing things not illegal under federal law — like jewelry and flat-screen TVs — can generate a lawsuit if the burglar gets hurt, what’s to prevent someone stealing medical marijuana plants from suing if he or she gets hurt during the commission of that crime? Complicating it even more, what if the burglar has a medical marijuana card so possession of the stolen plants is considered legal in our state? There are no easy answers to this, and it’s an issue that’s not going away any time soon. Personally, I think the answer is for the federal government to regulate medical marijuana and dispense it through legitimate pharmacies, just as it does other controlled substances running the gamut from morphine to Viagra. But the law of unintended consequences is undeniably at work here — and as usual, the taxpayer get to foot the bill.

Jackson angling for veep under JFK. The fight was whether they went for whoever looked like the winner by the time, the roll call got to W or let individuals vote. Individuals won, one of whom was a labor official who refused to back off on his onehalf vote for Rosellini. The figures went to the convention clerk. So millions of people listening and watching heard this come back; “Washington, 14-1/2 for Kennedy, 61/2 for Stevenson, 3-1/2 for Symington, 11/2 for Johnson and 1/2 for Rosenelli. Who in hell is that?” Washingtonians cringed, including the governor. Al’s try for a third term in 1964 ended in his loss to a virtually unknown legislator named Dan Evans. Rosellini figured the third term jinx was still on and he could make a comeback after a time out the way former Gov. Langlie did. He was looking good to the point I wrote that the only way they could beat him now was to get a picture of him on his back porch some night talking to someone in the Mafia. They tried. Keith Dysart, a top aide

to Atty. Gen. Slade Gorton, turned up some telephone calls Rosellini made to a Honolulu police sergeant at a time when a brother of convicted gambling operator Frank Colacurcio was trying to get a liquor license renewed in that city. Al said the cop had been his driver at a political event there and he called to congratulate him on his 25th wedding anniversary, but he sank like a stone in November. My favorite Rosellini story was the time Al and his wile, Ethel, Rep. John O’Brien and Seattle jeweler Leo Weisfield were in Rome at the same time and got an audience with Pope Pious XII. On being introduced, the Pope said of the Norwegian-born Ethel to her husband. “I see you married a nice Italian girl.” A flustered Rosellini nodded, at which Weisfield whispered to O’Brien, “How about that Al! He even fibbed to the Pope!” Sleep well, Al, The Lord gave you 101 years. You earned it. (Adele Ferguson can be reached at P.O. Box 69, Hansville, Wa., 98340.)

Memories of Al Rosellini Al Rosellini was one of the best governors we ever had. To this day, I do not remember whether I voted for him or Dan Evans when they ran against each other because I admired and liked them both equally. He paid me one of my greatest compliments ADELE FERGUSON when he told me “Adele, Politics you always stabbed me in the front.” I first met him when be was a state senator who, said one old time senator, fondly, “was an absolute master at voting for all the programs and none of the taxes.” Oddly enough, his nickname during his governorship was “Taxolini.” The first year Rosellini was governor, 1957, the Legislature passed and he signed a budget that wasn’t even balanced. They’d

do the taxes to balance it later on, they said. The next year, the Budget and Accounting Act was passed, mandating a balanced budget. How did Gov. Al balance a budget? He’d call in all his department heads and say, “As of this date, every department is cut 15 percent. You decide where to do it, but I want 15 percent. I don’t mean 14 percent. I mean 15 percent And when we have our next meeting, if it isn’t done, you won’t be here afterward.” They cut 15 percent. He was tricky. When he couldn’t get rid of Don Abel off the State Liquor Control Board, he privately got a senator to introduce a bill abolishing the board. The press came calling and Gov. Al said, “I just don’t understand the irresponsible actions of the Senate.” The board stayed. Abel didn’t. Not many people remember that he was our only governor nominated for president. That was in 1960. Washington Democrats were in a battle over Kennedy versus Johnson, our Sen. Henry M. “Scoop”


ON THE SCENE AT KIANA LODGE (SEE PAGES 12 & 13 FOR THIS YEAR’S WINNERS)

Congratulations to the 40 Under Forty Class of 2011 Drawn from a pool of more than 100 nominees, the Kitsap Peninsula Business Journal took great pleasure in introducing the “40 Under Forty” Class of 2011. Our distinguished panel of judges included V.P. and Executive Director of the Home Builders Association of Kitsap County, Teresa Osinski; Broker/Manager of John L. Scott Poulsbo office, Frank Wilson; and Restauranteur and owner of

Amy’s On The Bay in Port Orchard, Amy Igloi. Special thanks to our sponsors; Kitsap Bank, Suquamish Clearwater Casino, St. Anthony Hospital, Betty Skinner Insurance/Allstate, Printing Services, Custom Picture Framing, and West Sound Workforce. Thank you to our keynote speaker (and past 40 Under Forty honoree) Senator Derek Kilmer, 26th Legislature District.

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