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March 2012 Vol. 25 No. 3

The Voice of Kitsap Business since 1988

ChocMo Gets Hip Reviews Expansion creates place for people to enjoy chocolate and other fun fare By Rodika Tollefson CBC Chocolates has created a steady following since owner Peter Crabtree opened the store in Poulsbo in 2005 — while still a teenager. Last April, Crabtree topped that achievement by expanding the business into a chocolate bistro and rebranding it to ChocMo. Since then, fans have been raving about the hip coffee shop/bistro/chocolate store fusion, and many have made it their new favorite hangout in Poulsbo. Crabtree said everything at ChocMo is still centered around the handmade chocolates, about 20 flavors in all. In addition to the chocolates, espresso and related products, ChocMo offers a menu of wine, beer, decadent desserts and light fare such as paninis and cheese samplers. “We’ve been steadily growing and increasing our online sales,” Crabtree said of the expansion. “I wanted to create a place where people could come in and enjoy the chocolate and other things.” Cover Story , page 4

Peter Crabtree, owner, ChocMo

$1.50 Display until April 1st

Human Resources, pg 12

Editorial, pp 36-38

Special Reports:

Financial, pp 14, 15

Retirement Lifestyles, pp 6-11

Technology, pg 16, 17

Home Builders Newsletter, pp 19-22

Branding, pp 26-28

Automotive, pp 32-34


Real Estate, pp 23-25

DuPree joins Integrative Wellness Centers Denise DuPree returns to Bainbridge Island at The Integrative Wellness Center, located at 164 Knechtel Way, N.E. She has also joined with the Integrative Wellness Center in Poulsbo, located at Satori Center for Well Being at 18978 Front Street. DuPree has been practicing acupuncture for over 12 years and specializes in Women’s Health and Pediatrics. She can be reached at (206) 419-1606 or

Bainbridge Island Police Guild elects new president The Bainbridge Island Police (BIPD) Guild has elected Bob Day as its president for a two-year term that began on Dec. 1, 2011. Day, a Bainbridge Island police officer, has been with the force for nearly 10 years and lives in Kingston. Prior to relocating to Kitsap County, he was a police officer in the Salt Lake Valley in Utah. “I’m honored my fellow officers have elected me to lead the Guild and I look forward to continuing the positive impact we’ve had on the community. My vision is to engage Island residents in ways that haven’t been considered, including assistance and outreach programs for our elderly and teen citizens among others,” Day said. Day also plans to encourage Guild interaction where appropriate with Island citizens groups and members of the newly elected City Council in an effort to improve police relations with the public. His goal is to maintain an open and productive dialog between special interests and Guild members.

Keely to head up SBA lending at Kitsap Bank Kerry M. Keely has joined Kitsap Bank as vice president and commercial loan officer. He will be managing the bank’s SBA Lending Department, located in Gig Harbor. Keely has over 37 years of experience in commercial banking, and was recently with Evergreen Business Capital in Seattle. “Kerry brings a wealth of experience in Commercial Real Estate and SBA 504 lending,” stated Steve Politakis, executive vice president/CCO. “He is dedicated to providing the personalized customer service that is Kitsap Bank’s hallmark. We are very pleased to have Kerry on board.”

Ken Winslow named to PlanAdviser’s Top 100 Morgan Stanley Smith Barney announced that E. Ken Winslow, senior vice president/wealth management, financial advisor, Chartered Retirement Plans specialist and Corporate Client Group director has been named as a top 100 retirement plan adviser by PLANADVISER magazine (NovemberDecember 2011 edition). Winslow is recognized for his ‘demonstrable presence’ in the Washington state region providing ‘indispensable resources to plan sponsor clients’. He can be reached in Silverdale at (360) 613-1973.

2 Kitsap Peninsula Business Journal • March 2012

Edward Jones advisor sponsors Coffee Club Teresa Bryant, a local Edward Jones financial advisor, will be hosting a coffee club at 9 a.m. on Wed., April 4 at Edward Jones Investments, 555 Pacific Ave Suite 101 in Downtown Bremerton. “The coffee club offers us an opportunity to learn from one another and receive market updates,” Bryant said. “I look forward to keeping individual investors informed about the current market and economy, as well as have fun and get to know some of my neighbors.” Seating may be limited. To reserve a seat, call Michele Dudley at (360) 373-1263.

Nelda Swiggett Trio to perform on March 16 Earshot Jazz calls pianist Nelda Swiggett "a Seattle gem," and All About Jazz describes her music as "refined and confident, open and inviting" with "a bright palette, a sinewy execution and a powerful, assertive command." Swiggett will perform at Bremerton’s Collective Visions Gallery on March 16, at 7 p.m. Tickets are $15 in advance and $19 at the door. Call (360) 377-8327 for tickets or more information.

Clear Septic Solutions celebrates milestone Clear Septic has reached a milestone by celebrating its first anniversary. Brothers Silas Oliveto and Stephen Oliveto built a strong foundation during their first year and are looking forward to continuing their growth by helping septic owners, property managers, and real estate agents in the Kitsap and Pierce County areas. Silas Oliveto stated, “We’re excited about the opportunities to help others with the best service that we can and will give them.” Clear Septic Solutions offers inspections, maintenance, repairs, education, health letters, and more. You can reach the firm at (360) 698-9400 or

Glorious Comfort offers new joined bed sheets in exclusive tricot fabric Gloria Metcalf, owner of Glorious Comfort in Lakebay, announces that the company has developed a new ‘joined’ sheet in exclusive tricot fabric. “Our ‘joined’ sheet sets include a top sheet and bottom sheet sewn together at the foot. (The sleekness of the fabric makes this step necessary.) They come in all standard bed sizes and in standard pocket sizes,” Metcalf said, “and they are made in America.” Glorious Comfort sheets and pillow cases are available in all standard sizes and five colors. The company is celebrating its fifth anniversary with a new website. Metcalf is a graduate of the Washington Community Alliance for Self Help (CASH) program in Kitsap and is active in the CASH business support group of business owners. Contact Glorious Comfort by phone, (253) 884-6600, by email at and view product on its website at

Thunder Paws Animal Massage opens in Poulsbo

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Leadership Kitsap looking for Class of 2013

The Brothers Powersports, located in the Bremerton Auto Center, has achieved Pro Yamaha Status. Less than 25 percent of all Yamaha dealers nationwide achieve this exclusive standing. Pro Yamaha is achieved when certain criteria are met like a 92 percent or above Customer Satisfaction Index in Service work complete and major unit sales. “We have worked hard this last year to get our operation up to the Pro Yamaha standard, and even achieved a Sport Specialist and Star Specialist designation,” explained Brian Nilsen who manages the dealership. “The designations mean even more criteria needed to be met such as technician and product training.” The Brothers Powersports can be reached at (360) 479-6943 or visit

Leadership Kitsap is now taking applications for the Class of 2013. The deadline is April 6, for this intensive 10month training program. If you’re interested in becoming more knowledgeable about the Kitsap area and learning how to make a positive impact in civic issues affecting your community, Leadership Kitsap is for you. The mission of Leadership Kitsap is to educate, prepare and connect a new group of committed leaders for community involvement in Kitsap County. Its vision is to create a community where there is a diverse network of effective leaders educated in public policy issues and committed to serving as stewards. Visit for information and to apply.

Thank You, Elliot! Join us in thanking outgoing KEDA Board of Directors Chair, and CEO of Kitsap Credit Union, Elliot Gregg for his outstanding service to the community and for his dedication to building and supporting a vibrant local economy — for all of us.

Kitsap Economic Development Alliance Salutes You, Elliot Gregg! A private, nonprofit organization

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March 2012 Kitsap Peninsula Business Journal • 3

Thunder Paws Animal Massage is owned and operated by Terry Shuck, a small animal massage practitioner (S.A.M.P.), certified by the state of Washington. Her mission is to enhance a pet’s natural ability to achieve and maintain wellness through massage, and to teach participation in that process. Shuck uses massage training and ability to empathize with animals and their guardians, to improve the lives of each. She received 300 hours of training from the Northwest School of Animal Massage ( which is newly headquartered on Vashon Island. Her specialty is “Rehabilitation” massage. The intention of animal massage at the basic level is to maintain optimum health, and rehabilitation massage is to aid the animal’s body in returning to health. Massage aids the body in removing metabolic waste products, releases endorphins, lengthens muscle fibers, and improves immune function; it benefits healthy animals as well as those dealing with conditions of old age, or recovering from an injury, illness, or surgery. A veterinarian’s approval is required before massage is performed on a recovering animal. Shuck donates massage to the dogs and cats at the Kitsap Humane Society. Animals that are confined, fearful, or anxious also benefit greatly. Her service area is mostly Central and North Kitsap. Massage is performed at your residence or in her studio in Poulsbo. For appointment and cost information, visit, call (360) 5091374, or email at

Brothers Powersports attains Pro Yamaha status


from page 1 He used other wine bars and similar venues for inspiration to come up with a menu mix that would attract different people, and has been changing it up based on customer feedback. The menu includes beef raised on his family farm in Kingston, smoked salmon from Crimson Cove Smoked Specialties in Poulsbo, nuts from CB’s Nuts in Kingston and rotating wines,

both local and from around the Northwest. One of the signatures of the chocolate side of the business remains its beer-infused chocolate, made with brews from Silver City and Sound Brewery, among others. The comfortable but urban-style décor pays tribute to the Northwest. Some of the cedar for the décor came from his grandfather’s farm, and Crabtree’s father made the coffee table that decorates one side of the bistro. Local artists’ works are displayed on the walls on a rotating schedule. Crabtree comes from a family of entrepreneurs on both sides. One grandfather, Tim Ryan, owns a construction company that employs several family members. Another grandfather owns a well-drilling company, where Crabtree’s father works. In the same family tradition, several members of Crabtree’s own family are involved with ChocMo including his parents and younger brother. Growing up on the farm, Crabtree helped raise cattle, which was sold to private customers. At age 15, he decided to launch his own business after taking a culinary arts class at West Sound Academy — and to pay for equipment, he used funds from his farm work as well as from selling through a 4H program at the Kitsap Fair. Two years later, at age 17, he opened the shop, which is still in the same location. Since the opening, he has been

experimenting with new ideas including live music. Wine and chocolate pairing events on Wednesday nights are among the newest additions, and art night opening events are in the works. “I think we provide a fun, relaxed atmosphere for people to come in and hang out, enjoy a glass of wine or beer, or great espresso,” Crabtree said. Four employees help out at the business and Crabtree is involved hands-on with

every aspect, including chocolate-making. He jokingly says he works about 90 hours a week — and that’s probably not far from accurate, considering he’s at ChocMo just about every day. Looking ahead to the one-year anniversary of the rebirth of his business, Crabtree seems content about his big move. “I feel we’ve just hit critical mass,” he said. “We’re getting more and more enthusiasm from customers and more referrals.”

Legislature finally considers proposal to allow charter schools in Washington

4 Kitsap Peninsula Business Journal • March 2012

The leader who rebuilt New Orleans' school system after Hurricane Katrina speaks on reforms that could transform Washington's schools At Washington Policy Center's recent education lunch, Paul Pastorek didn't waste time getting to the crux of the matter: "The system is so outdated, outmoded, and dysfunctional, good people can't help but be unsuccessful. The system is broken, and one of these days people around this country are going to recognize that." Pastorek knows what he's talking about. After Hurricane Katrina devastated New Orleans in 2005, as Louisiana State Superintendent of Schools Pastorek reorganized the city’s school system as a "Recovery School District." But Pastorek made it clear to the more than 200 education, business, and community leaders in attendance that the move was not the sort of "state takeover" that has occurred with failing schools elsewhere in the country. Rather than replace the leaders in a failing system, he changed the system. "When you get a system that gives you mediocre at best

and awful at worst, why do you keep the system?" Pastorek asked. The state avoided a command-and-control approach and instead decentralized the system to empower principals, giving them the power to determine the destiny of their schools. "What this system reform is about is putting responsibility where it belongs, on the principal, making it clear and unambiguous who is charge and who is responsible, and giving them the power to make a difference," Pastorek explained. "When you design a system that rewards high quality, you get the results you designed for." The results in New Orleans have been dramatic. • Schools in Louisiana’s Recovery School District have ranked number one in student progress since 2007. • New Orleans’ African-American students score better today than African-American students in the rest of

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the state. • Five years ago, 23 percent of children scored at or above "basic" on state tests; now 48 percent do. • Before Katrina, 62 percent attended failing schools; less than 20 percent do so today. "What we're doing is in the best interest of the children, and we've got a childrenfirst focus in our approach ...There's tremendous scrutiny being applied to what we're doing, and parent satisfaction has gone up dramatically," Pastorek said in conclusion. He urged Washington to learn from New Orleans' experience. "I urge you to explore what we've done, test what we’ve done, see if I’m just making this up or if it's real. If you don't believe it, just go to New Orleans and see it." Currently 41 states allow charter schools in some form, though Washington is not one of them. This year the legislature

Automotive The latest offerings from auto manufacturers.

Healthcare Quarterly

is considering a bipartisan proposal to allow a limited number of charters here. At the lunch event, WPC showed part of Rep. Eric Pettigrew’s eloquent legislative testimony for the bill. Pettigrew, a Democrat from urban south Seattle, told the House Education Committee, "All I'm asking for is the opportunity, through this legislation, to get those kids today, who need our help today." WPC President Dann Mead Smith testified at that same bill hearing with Rep. Pettigrew, where he discussed WPC's longtime research showing charter schools have helped improve student learning across the country. Lunch attendees also saw legislative testimony from Macy Olivas, a student at Whitworth University in Spokane, who attended a charter school in California that focuses on helping low-income minorities become the first generation in their family to go to college.

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Visionary Leadership... Avoid Gravitational Pull. You have a current state and a desired state. It’s very easy to fall back into the current state if you’re not aware. The desired state is your vision. You have to lead your team down that path by constantly beating the drum for your message; encouraging and inspiring; and heralding what’s in it for your team. It’s very easy to slip into the past when things get busy. It’s an easy out for people, whether done intentionally or not. Just like a great coach, executives with vision must remain vigilant to make sure there is no

slippage on the path to that new and desired state. The Bottom Line: being visionary is intentional. You need to plan for it; set aside time for it; learn to communicate it; and be consistently passionate about it. If it were easy, everyone would do it. That’s why there’s not that many Steve Jobs out there. The good news is that you can do it. You just have to be intentional and strong about replacing that blurred vision with a sharp, vibrant new one that drives your organization and its people.

(Editor’s note: Dan Weedin is a Poulsbobased management consultant, speaker, and mentor. He leads an executive peer-topeer group in Kitsap County where he helps executives improve personally, professionally, and organizationally by enhancing leadership skills. He is one of only 32 consultants in the world to be accredited as an Alan Weiss Master Mentor. Reach Weedin at (360) 697-1058; or visit

March 2012 Kitsap Peninsula Business Journal • 5

By Dan Weedin I just got my first pair of reading glasses. At 47 years old, I think I hung on for about as long as I could. It was either succumbing to getting the glasses or finding longer arms. The former seems easier. I’ve been challenged in the early stages of getting used to them. Even though my vision is sharper when reading a book on my iPhone or working on the computer, I find that I can get disoriented when moving my head around suddenly, or shifting my eyes. I’m certain as with most things, my eyes and brain will acclimate and I will wonder how I managed without them. It’s a simple matter of training my eyes and “educating” my brain. CEOs and leaders of organizations require vision. Steve Jobs had it at Apple. He was able to imagine the future, anticipate trends; beat the competition to new innovation; and create evangelists for his products like nobody else had. How sharp is your vision to lead your organization and is your team following? Just like my newfound “vision” affected my brain and eyes, so will your vision (or lack of) affect your team. Sometimes new (or renewed) vision may lead to a little disorientation. Education may be needed to direct and guide. And, strategies to avoid “gravitational pull;” or the return to a default condition, need to be put into place. Having vision without communication and monitoring is like not having vision at all. So how do you gain and communicate vision as a leader? Here are three steps… Work ON your business, not AT it. Creating your vision is not busy work. It’s literally putting your feet up on the desk, your hands clasped behind your head, staring off into space, and just thinking. Many of you might be wary of doing this lest your team think you’re just snoozing or goofing off. In reality, this is what you should be spending most of your time doing! Vision requires strategy, which requires contemplation. It may mean you need to leave your office and find a quiet place to think. What do you think about? You think about your industry and where it is going. You think about your team and what growth looks like and if you even want to go there. You consider new products, new opportunities, reinvention, and personnel. You spend time creating that vision of your business that involves a healthy dose of honest evaluation and creativity. Communicate your vision. You see it crystal clear. Unfortunately, your “eyes” and “brain” don’t. Without them, you can’t reach your objectives. Clearly communicating your vision and engaging them in the process is crucial for success. I’ve worked with organizations where the CEO knows where they are going, yet his or her team has no idea. The CEO has either done a poor job of communicating it, or maybe hasn’t tried at all. Just like your brain and eyes need time to re-adjust to the new vision of glasses. Your team needs the same time and they need to know where they are looking!

6 Kitsap Peninsula Business Journal • March 2012

Caregiving a bigger challenge for the ‘sandwich generation’ By Rodika Tollefson An estimated 20 million Americans are part of the so-called sandwich generation — adults who care for their underage children on one side and aging parents on the other. It’s a number that is expected to grow steadily, as more baby boomers enter the golden years, and as the life expectancy in the United States is much higher than it was for previous generations. More than 60 percent of these “adults in the middle” are estimated to be working, adding to the pressures of raising children and caring for aging parents at the same time. While some are long-distance caretakers, many of them get their parents to move into their homes and become their primary caregivers. “I see them having to deal with balance and differentiating their alliances. There’s always priorities and hierarchy — who needs the time and who gets the time,” said Debra Jamerson, a registered nurse who owns Haven in Allyn assisted living and adult day care facility in Allyn with her husband, and leads a support group for caregivers of Alzheimer’s patients. Jamerson, whose business also provides in-home care, frequently connects caregivers with available resources and offers education through a KARE radio show that she hosts on KITZ, interviewing professionals from different fields who work with the elderly. She says she especially sees the sandwich generation underutilizing resources available to them, and those resources could help them have more balance. “Instead of feeling bad about it, pull in the support you need,” she said, mentioning things such as respite care and geriatric case management. The geriatric case manager, for example, can help determine the elderly person’s long-term needs and create a plan of care. Usually a nurse or a social worker, this care manager can look at everything from safety in the home to nutritional needs, transportation and companionship, as well as financial resources and whether they can be sustained. “When you bring in a geriatric care manager, they also look at the goals and what’s important to accomplish. It’s almost like making a road map to the goal,” Jamerson said. A case manager could be helpful in those situations when parents don’t want to take advice from their adult children, sometimes putting their safety and wellbeing at risk. Randy Hardin, the administrator of the nonprofit Martha & Mary AT HOME and former owner of Abiding Home Care, has experienced this first-hand with his parents, as many other adults have. Despite having

helped numerous clients with advice on issues such as making their homes safe, he doesn’t have as much success when he makes suggestions to his parents — even as simple as installing grab bars in their shower. “No matter how old we get, we’ll always be our children’s parents,” he said. Hardin said it’s not uncommon for Martha & Mary clients to be living with their adult children, who also have their own children to care for. One area where in-home care may especially be of benefit is in cross-gender caregiving: an adult son taking care of his mother’s personal needs or an adult daughter caring for her father. “A lot of people cannot cross that line and (it helps) having someone come in that

they can trust without having to cross that emotional boundary,” Hardin said. One recommendation he has is planning ahead, which gives the family additional time to consider their options. “Typically when we first meet with a family, they are in a crisis. Most of us are not adequately prepared when the time comes, we wait until it hits us — so they’re scrambling,” he said. Financial resources may add another burden. Home care costs $20-$32 per hour on average and many agencies require a minimum of three to four hours per visit (though some, like Martha & Mary, don’t set a minimum number of days per month). Hardin notes that Kitsap County Area Agency on Aging and Long-Term Care can

both help low-income elderly and refer others to local resources. “People need to know we have great resources in Kitsap County. We are fortunate to live where we do,” he said. Jamerson said caregivers are often too overburdened to think about their own wellbeing. “It’s important you realize your own capacity and build your own support group of friends and neighbors, get counseling if needed, and expand your circle to allow other people to provide emotional support,” she said. “Don’t get such tunnel vision and get stressed out — take your vacation or mini-vacation, go see a movie or get a facial. Life goes on and it’s important that you continue to live.”

Running marathons after 55 — and loving it By Rodika Tollefson Marathon running may be viewed as a “hobby” for the pre-midlife generation and statistics seem to confirm it — the largest

group of runners are men ages 40-44 and women ages 35-39, with the average age of 38.8, according to But those numbers don’t deter many local runners who’ve crossed the “middle age milestone” and continue to take their running just as seriously. And, they say, it’s never too late to start — and you’re never too old to keep going. Peggy Van Buskirk didn’t start running until after 40. The Belfair pharmacist loved to run as a child, but didn’t have many opportunities — her high school didn’t have a girls track team. When her children were young, she would take them to the high school track and run, and she stayed active by bicycling, gardening and such. But when she turned 42, Van Buskirk decided she needed a better way to stay fit. Her father was 42 when she was born, and when she hit that age, she recalled him outrunning her older brothers. Her father, who

lived until age 92, only got sick in the winter, when he spent less time working outdoors. “I thought, if I wanted to stay health and live a quality life, I should start exercising (formally),” she says. About 17 years later, Van Buskirk has a collection of prizes and ribbons from marathons as far as Florida and Alaska. She usually finishes in the top 25 for her age group and does about three races a year, some shorter than others. She’s not a stranger to triathlons either, having finished four Danskins. While working full-time, helping run her family farm and frequently babysitting grandchildren, she has a strict training schedule that includes runs four to five days a week. Coming from a medical background, Van Buskirk understands the importance of regular exercise, but she also feels it herself. “I know regular exercise, even just walking, is such a benefit if people would just do it. I know if I don’t exercise, I’m a lot harder to deal with,” she says. “I also know it keeps me healthier — if you do it on a regular basis, you develop ‘killer’ cells that help fight disease.” Running is a family affair. Her husband, Ken, used to run before health issues prevented it (he has done the Boston Marathon). Their daughter, a former high school track athlete, frequently trains and runs marathons with her, as does Van Buskirk’s sister, though she’s had to slow down for medical reasons. “I found that if I don’t sign up for a race, I don’t have the motivation to keep going,” Van Buskirk says. For Chris Lemke, the motivation comes in the form of a running club. He’s been running since 1980, and in 1984 found a group that meets in Manchester. Every Saturday morning, the Port Orchard

resident gets together with 10-30 enthusiasts ages 21 to 70 to run together, then talk about running over breakfast. Lemke, who’s in his 60s, didn’t run well in his very first race, and since then has been determined to be at the top. “I run to win my age group. I’d run to win the race but I know I can’t compete with 20-year-olds,” he says. Even so, he’s been the top race finisher on many occasions. Competing in seven to 10 races a year including shorter ones, Lemke has done so many, he now looks for new ones that perk his interest, especially after having done

about eight states and Canada. He’s also started running trail marathons to make it easier on his legs, though those races are actually tougher since they are usually in mountain terrain. Retired for seven years, Lemke has commitments that include being a school board member in South Kitsap and working on other committees and projects. But he takes his running seriously, cross-training Running, page 8


It only makes sense – yet many retirees live without one By Jason R. Parker You won’t be able to withdraw an unlimited amount of money in retirement. So a retirement budget is a necessity. Some retirees forego one, only to regret it later. Run the numbers before you retire. Often people need about 70-80 percent of their end salaries in retirement, but this can vary. So years before you leave work, sit down for an hour or so (perhaps with the financial professional you know and trust) and take a look at your probable monthly expenses. Online calculators can help. The closer you get to your retirement date, the more exact you will need to be about your income needs. You first want to look for changing expenses: housing costs that might decrease or increase, health care costs, certain taxes, travel expenses and so on. Next, look at your probable income sources: Social Security (the longer you wait, the more income you can potentially receive), your assorted IRAs and 401(k)s, your portfolio, possibly a reverse mortgage or even a pension or buyout package. While selling your home might leave you with more money for retirement, there are less dramatic ways to increase your retirement funds. You could realize a little more money through tax savings and taxefficient withdrawals from retirement savings accounts, through reducing your investment fees, and getting your phone, internet and TV services from one provider. If you have just retired or are about to, you will enter 2012 with some financial breaks. Social Security benefits will increase by 3.6 percent next year, Medicare Part B premiums will only rise $3.50 instead of the $10 that Medicare projected, and the Part B

Edward Jones Financial Advisor Donald Logan of Silverdale is hosting a free 60minute educational seminar titled "Retirement has changed. What's your next move?" at 5:30 p.m. on Tuesday, March 20 at Edward Jones, 2416 NW Myhre Road, Suite 102 in Silverdale. These days, when people "retire," they have many decisions to make. Work part time? Volunteer? Go back to school? Whatever the decision, they need to be financially prepared. This seminar will help individuals explore: • How to organize and record financial assets • How to set realistic goals for retirement spending • How to determine if they are on track to reach their retirement goals The seminar is free, but space is limited. To make a reservation, call Donald Logan or Sarah Bartley at (360) 692-1216.

will nibble at your savings. Budget well and live wisely. These are times of low interest rates and modest Wall Street gains. Given those factors, creating a retirement budget makes a lot of sense. A budget – and the discipline to stick with it – may make a financial difference. (Editor’s note: Article provided by Jason Parker. Parker is the president of Parker Financial LLC, a fee-based registered investment advisory firm specializing in wealth management for retirees. His office is located in

Silverdale. The opinions and information voiced in this material are not intended to provide specific advice or recommendations for any individual, and do not constitute a solicitation for any securities or insurance products. All information is believed to be from reliable sources; however, no representation is made as to its completeness or accuracy. Please consult your trusted professional for advice and further information. Parker is insurance licensed and offers annuities, life and long term care insurances as well as investment services.)

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March 2012 Kitsap Peninsula Business Journal • 7

Edward Jones financial advisor hosts seminar about what to do after retirement

deductible will be $22 cheaper in 2012 ($140). Budget-wreckers to avoid. There are a few factors that can cause you to stray from a retirement budget. You can’t do much about some of them (sudden health crises, for example), but you can try to mitigate others. • Supporting your kids, grandkids or relatives with gifts or loans. • Withdrawing more than your portfolio can easily return. • Dragging big debts into retirement that

Planning: A Q&A with attorney Richard Tizzano

8 Kitsap Peninsula Business Journal • March 2012

By Rodika Tollefson Richard Tizzano has practiced law for 20 years, including more than a decade in Poulsbo ( He limits his practice to estate planning and elder law, as well as guardianships and adoptions. Tizzano, who was also a minister for 10 years, was the co-founder of Kitsap Alliance of Resources for Elders (KARE) and served as president for three years. As part of KARE, he has been educating the community about different aspects related to elder law and awareness of senior issues. The Kitsap Peninsula Business Journal talked with Tizzano about legal topics related to aging. KPBJ: When should someone contact an elder law attorney? Tizzano: My experience is that retirees don’t slow down, but retirement is when they might start thinking about estate planning. Once they retire, they make new goals and keep going — retirement seems to be a milestone. …There’s a difference between an attorney who just does estate planning and an attorney who does estate planning with an eye toward elder law. Long-term planning and competency planning are two big issues within the

elderly community so in estate planning, you have to take into consideration what long-term care planning they’ve done, and incorporate that in their estate planning. KPBJ: So is retirement the best time for elder law consultation? Tizzano: It’s a good benchmark. When you retire, that’s a time to think about things you should have covered from a legal perspective. If you get a diagnosis of a medical issue for a debilitating disease, that’s another benchmark. And if you have elderly parents, you should come in to see how an attorney may be able to help, or encourage them to see an attorney. KPBJ: Why is competency planning important? Tizzano: When you make out a power of attorney, you think of a person you trust. But people are not thinking of the possibility they may not be able to look over this person’s shoulder. …So maybe in your power of attorney, you want to make two people co-agents. It helps share the responsibility but also there’s accountability. KPBJ: What kind of issues can an attorney address? Tizzano: I consult with people on issues

like how Medicaid works and how to qualify with regards to long-term care. For example, someone will come in and say his wife’s been in a nursing home for a few years and they’re running out of money. There’s an opportunity for the well spouse to preserve the assets. If they had come to me at the beginning, I could have made a dramatic difference in how they live their life and eliminate some of their stress. …That’s the biggest challenge: People come in too late, where I could have set them on a different path. KPBJ: Besides a will, what other basic legal documents should older individuals consider? Tizzano: For basic estate planning, the will, power of attorney for assets, power of attorney for health care, a living will (directive to physicians), sometimes a revocable living trust. In the area of elder law, a special needs trust is often used that may allow half of the community assets to be preserved for a surviving spouse that may need long-term care. The downside to that is that the assets are not under the control of the surviving spouse and the spouse can’t be the trustee. The upside is… the assets in the trust can be spent for special needs of the surviving spouse but are not available to pay costs which would be paid by Medicaid. KPBJ: How frequently should a legal document such as a will be reviewed? Tizzano: The will would be different for a 40- to 50-year-old than a 70-year-old. You should look at the will through the lens of how are your needs different — the same

way you evaluate your insurance needs. I think people should look at their will any time they’re going through a major life change, such as a diagnosis, retirement or inheritance. KPBJ: What is important to know regarding long-term-care planning? Tizzano: The key words are sustainability and a plan. You want a plan, and you want a plan that’s sustainable. I help people look at the options — do you want to live in assisted living, with your kids or at home? What do those options cost? What resources are there to assist you and how does it look for sustainability? I look at myself like a tour guide. If I can tell you what’s ahead, you can plan for it and help people understand the consequences and the options. KPBJ: Any particular thing that is often overlooked in elder law or planning? Tizzano: When you ask people ‘how old is old,’ it’s usually 10-15 years older than they are. So they try to rationalize, ‘I don’t need to do anything yet.’ I encourage people not to wait. I really admire the folks who have the courage to stay ahead of their changes in life — for example, they know when they’re ready to move to an apartment or assisted living. People who are able to make those choices ahead of time are able to enjoy an extended period of quality of life because they were able to make that transition.


runners of all ages (including preteens) and skills, meets Tuesday and Thursday evening. “I do it for fun now because I’m not that fast anymore or care for personal bests,” says Barmore, whose longest streak was 14 races in 12 months. One reason he’s stuck with it, Barmore says, is a running partner he’s had since 2004. They do train and run races together, which keeps him accountable. That has also forced him to train year-round instead of taking winters off, as he did in his younger years. Barmore believes a person of any age, shape and skill can run, and points out that Bob Dolphin, the director of Yakima Canyon River Marathon, started at age 51. Now 83, Dolphin recently finished his 500th race. “You’re never too old to start,” Barmore says. Van Buskirk agrees that it’s never too late to start but says sometimes it’s better to walk, swim or bike because it’s easier on the body. (That means getting medical advice may not be a bad idea.) The important part is making a commitment and then following through. “It’s important as much for your mental health as for physical,” she says. “Your body needs to keep active.”

from page 6 through kayaking, bicycling and other ways to build strength and endurance. “More people over 55 are realizing the human body can do amazing things,” he says. “It’s so important for mind, spirit and body. But whatever you do physically, you have to stay with it because the body deteriorates.” Bill Barmore learned about that concept the hard way. He ran his first marathon in 1990 but took a hiatus a few years later. One day, he had an epiphany of sorts while coaching a softpitch team and thought he would catch up with a 12-year-old girl long before she reached third base. He couldn’t. “I went and bought shoes and started running again,” he says. After that eight-year break, getting back into it didn’t take long — he qualified for the Boston Marathon the following year. A decade after he’s returned to his running hobby, Barmore still does several races a year, though he admits he runs more for the social aspect. A Gig Harbor resident, he runs regularly with a group coordinated by Route 16 footwear store. The group, which includes

Insurance for long-term care grows more popular price is the benefit amount, which could be a daily, weekly or monthly limit, as well as the deductible. Other variables include the waiting period — how soon the policy kicks in once a claim is approved — and how long a period it will pay for. The policy may also have the option of providing a pool of money that can be used as needed until the amount runs out, and some companies offer the option of converting a whole-life policy or annuity into a LTC policy when necessary. A person must qualify for a claim, which usually either entails a diagnosis of cognitive impairment or a loss of two activities of daily living. Some policies wave the waiting period for an in-home caregiver, but LTC insurance does not pay for things like doctor visits. In addition to the basic plan, individuals can buy “riders” such as cost of living increase or inflation protection. Although many people don’t buy LTC insurance until their 60s, the premium costs for a 60-year-old may be as much as double those of a 50-year-old (there’s usually a spouse discount offered as well). According to the National Association of Insurance Commissioners, on average an LTC policy costs an estimated $888 a year at age 50, $1,850 at age 65 and $5,880 at age 75. By comparison, nursing home care costs on average are around $51,000 nationwide. Rouse said that many times, people wait until they’re in their 60s to buy an LTC policy because they have other financial priorities — such as putting kids through college or paying for disability insurance instead. “Once they get older, it becomes a high priority,” he said. “Some people use it as an estate planning tool.” One important part of the homework when buying a policy is to make sure the policy underwriter (who is not the same as the company selling the policy) has good financial ratings. Several agencies including Moody’s Investor Service and Standard & Poor’s Insurance Rating Services provide ratings but they use different scales so it’s important to understand the different labels. Public libraries may offer access to these ratings for free. For more information about long-termcare insurance, visit the National Association of Insurance Commissioners’ website at Scott Rouse may be reached at

McCabe earns CAPS designation Molly McCabe, founder and co-owner of the design-build firm A Kitchen That Works LLC, has earned the Certified Aging in Place Specialist (CAPS) designation from the National Association of Home Builders. The CAPS designation program teaches the design, construct ion and customer service skills essential to designing and building for individuals with physical and/or cognitive limitations as well as homeowners who want to "future proof" their homes for long-term occupancy. Reach McCabe at or (206) 780-1906.

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March 2012 Kitsap Peninsula Business Journal • 9

By Rodika Tollefson Scott Rouse knows first-hand the importance of long-term care planning. His parents purchased long-term care insurance about 20 years ago, when they were in their early 60s. They were both physically and mentally in good shape at the time. “When they bought it, neither had the idea they’d need it,” he said. About five years later, his mother was diagnosed with dementia and eventually had to move into a facility — which cost $400,000 over five years. “You can blow through an estate or retirement account pretty quickly,” Rouse said. As the owner of Peninsula Benefit Services, Rouse sells insurance plans that range from health and life, to disability and long-term care (LTC). He says people who are inquiring about LTC plans are frequently in their 50s, and they usually have had experience with caregiving because of their own parents. “Many people are still in denial and don’t think it’s going to happen to them. …Like other insurance, you can only get it when you don’t need it — if you have certain health issues, you’re not insurable,” he said. “What drives the rate is your health, and it’s less expensive when you’re younger because you’re paying longer.” Long-term care, which may affect individuals at any age, refers to care needed for a prolonged illness, disability or cognitive impairment such as dementia. It is not traditional medical insurance, but rather pays for assistance such as “daily living” activities, adult day care or respite care. However, LTC policies do cover skilled care for medical personnel like registered nurses for certain medical conditions and when “ordered” by a physician. LTC insurance is designed to help the individual maintain independence, which could mean in-home care as well as care in an assisted living environment. But it’s not right for everyone — for example, the costs may not be worth it for people with limited assets or only Social Security income. “I usually recommend for people to get what they can afford, you can buy more later,” said Rouse, who has a CLTC (certificate of long term care) designation. “I’m of the opinion that something is better than nothing, and it gives you comfort that you have something.” One major factor that impacts the


10 Kitsap Peninsula Business Journal • March 2012

Belfair disaster trainer hopes to keep work closer to home By Rodika Tollefson Denny Hamilton has traveled all over the world, working in 82 countries as well as visiting others. For most of his career, in fact, he lived overseas while providing disaster management and community development training. He still does some work for United Nations and others — but after decades of living around the globe, Hamilton has been ready to settle with his wife, Marcia, at their Belfair home. Retirement, however, is out of the question. Hamilton, in fact, only considers himself semi-retired. “I believe, to some degree, retirement is in your head and you’re as old as you think you are,” he says. “Older people have a lot to offer to the rest of us, so as long as I’m coherent on one hand and appreciated on the other, I’ll share what I can with other people.” What he’s hoping to share is his extensive background helping communities and agencies prepare for disasters, as well as facilitating conferences and training. These days, he is holding workshops closer to home — such as recently, for Mason County Fire District 2, which he also serves as commissioner. His focus was specifically on disaster recovery, a topic he feels is frequently overlooked. “I have worked in emergencies all over the world and one of the hardest aspects is recovery,” he says. “A lot of people only talk about preparedness and response.” He says once a major disaster situation is stabilized, the attention is shifted somewhere else, and there’s even little news coverage. Yet, as one example, he says 380,000 people are still living in tents in Haiti two years after the catastrophic earthquake that affected an estimated 3 million people. Closer to home, many people are familiar with the Y.O.Y.O. program (You’re On Your Own), which teaches people to be self-reliant for a week after a major disaster, but Hamilton points out that in remote areas such as Mason County, that is not enough — it could take a month for aid to arrive once all the major metropolitan areas are covered. He has also been teaching personal planning workshops, including to groups such as women returning to the workforce, through his small business, Training Associates Pacific, which he owns with his wife. A newer area for Hamilton is working with veterans. A psychologist by training, he is collaborating with the Veterans Administration to provide workshops to veterans, including incarcerated vets and homeless veterans who are part of Retsil’s housing transition program. One of his topics is post-traumatic stress disorder, which is dear to his heart.

Hamilton says he didn’t truly understand PTSD in war veterans until he watched a two-person play called “Into the Fire.” The actors interviewed veterans from several wars to create the script. He says by

The play has impacted him so much, Hamilton became involve with a project to create a documentary based on the veteran interviews and audience reaction to the play, and is also helping raise funds for the

Denny Hamilton, on the far right, with the chief minister of Northwest Frontier Provence and others at the opening of the first Construction Trades Training Center in Manshera, Pakistan. the third time he saw the play, he truly understood the scene in which a father returns home from World War II and becomes verbally and physically abusive. “For the first time in my life, I understood my Dad. My Dad hated me. …This is something I carried my entire life and the light came on — he didn’t hate me. He didn’t know how to deal with me,” he says.

documentary. He says it’s important not only for soldiers to understand the effects of PTSD, but also for the general public. “A lot of people don’t hire veterans with PTSD because they’re afraid they’ll act out, and the play helps people understand (the issue),” he says. Last year, Hamilton also revived his longtime passion for wood, and started

another business called Wooda Using Coulda. driftwood and downed trees, he creates things like coat racks, candle holders and art. It’s a hobby-turned-business that brings him full circle: A former logger, he grew up in Washington state with two generations of carpenters and has a deep appreciation for wood. He’s been collecting unique pieces of wood, some of them hundreds of years old, since settling in Belfair in 1995 — and now is sharing some of that collection with the public through his new creations. Hamilton has volunteered his time for several nonprofit boards and projects, and in his “free” time, he is writing two books. One, which he’s writing with Marcia, is a six-volume instructional book on training. The other is his story of living in a rural fishing village in Alaska when he was in his late teens. And just in case he’s not busy enough, he recently decided to run for Mason County commissioner, which he sees as a way of bringing all his life experiences together. “I have so much community development, disaster management and infrastructure development experience,” he says. “I thought to myself, maybe I can bring something from my experience to improve the situation of the people here.”

Retirees not immune to mortgage problems A long-standing assumption that older people as well as those who are more educated are more financially stable may not be true. A recently released study by the University of Iowa puts into question the idea that older or more educated consumers have an easier time affording their homes. University of Iowa School of Urban and Regional Planning associate professor, Jerry Anthony, examined data collected by the Consumer Bankruptcy Project at Harvard University of U.S. households that filed for bankruptcy in 2007. He consider various factors such as age, income and race in assessing the “housing-cost burden,” or the ratio of h ousing costs to income, of the families that tried to save their homes from foreclosure. As part of the study, Anthony found that the assumption that older homeowners are generally close to paying off their mortgages or having an increased income with an unchanged mortgage payment is incorrect. He found evidence that the likelihood of being “housebroke” was higher if the oldest homeowner was

65 or older than if that person was 40 or younger. He attributes that, in part, to the growing trend that older adults carry more debt than their previous generations. He also mentions predatory lending that was prevalent in the past decade that aggressively marketed second mortgages to consumers. “During the run-up to the housing crisis, sometime in the early 2000s, mortgage companies targeted people with equity in their h omes, enticing them to borrow with statements like, ‘This is a great time to tap into your equity to buy that boat or take that around-the-world cruise you've always wanted to go on,’” Anthony said. He uses as example the scenario of a homeowner whose home was paid off and lives on a fixed income such as Social Security. Even with a small equity loan payment of $200 a month, that person can run into financia l problems if unexpected expenses such as medical bills come up. “For $200 a month, they lost their home that they had paid on for 30 years,” Anthony said. “It’s tragic. They worked hard, they had solid jobs, and they

achieved the American dream. But they wanted to improve their quality of life a little more, and the American dream became the American nightmare.” Anthony says lack of effective government re gulations, ruthless financial institutions seeking short-term gains, as well as naïve consumers are all to blame for the foreclosures. “People think, ‘If a bank gives me a mortgage loan, it surely believes that I can repay that loan.’ That’s absolutely naive,” he said. “Banks often didn’t have an expectation that you’re going to pay off the loan. They were just there to originate the loan, make some money o n the origination and then bundle the loan with other loans and sell it off.” He wrote about the findings of the research in a chapter of the recently released book, “Broke: How Debt Bankrupts the Middle Class,” published by Stanford University Press. The book was authored by experts in different disciplines including law, psychology and economics, and looks at the consequences of the unprecedented growth in consumer debt for middle class Americans.

The advantage of working with Certified Aging in Place Specialist (CAPS) The National Association of Home Builders offers a certification designation called CAPS, Certified Aging-in-Place Specialist. According to the NAHB, the program “teaches the technical, business management and customer service skills essential to competing in the fastest growing segment of the residential remodeling industry: home modifications for the aging-in-place.” To be certified, builders, architects, designers and other professionals have to complete specific educational courses including continuous education credits, pledge to follow a code of ethics and meet other requirements. Molly McCabe, a CAPS designer who owns A Kitchen That Works on Bainbridge Island, says the name of the certification doesn’t encompass the entire scope of program, and would be better described as universal design specialist. “The reason being is that as designers

and builders, we don't just serve seniors, we serve injured service personnel, physically and mentally challenged children and young adults as well as young, middle aged and older people who may have physical limitations due to an accident or from a debilitating disease. The specific advantages of working with someone with a CAPS designation is these individuals possess a wide depth and breadth of knowledge with respect to products and design features that can assist homeowners to live safer, more convenient independent lives,” she said.

Professionals who go through the CAPS process are better equipped to understand the complexities of aging in place and navigate consumers through their projects. “By opening a client’s eyes to aesthetically pleasing aging-in-place amenities, you can help them live longer independently in their home, which is much more cost-effective than living out one's senior years in an assisted care facility, and helps maintain the individuals dignity,” McCabe said. When you hire someone with a CAPS

designation, choose a contractor with whom you feel you can build a relationship of trust. Learn more about the builder or designer’s specialty — there are several subsegments in the aging-in-place market and not all contractors cater to all those segments. For more information about aging-inplace including how to find a CAPS professional, go to (follow the housing topics link, then remodeling). Kitsap Home Builders Association also lists designations for its members; go to

Martha & Mary AT HOME receives second “Best of Home Care” award

March 2012 Kitsap Peninsula Business Journal • 11

Martha & Mary AT HOME announced that it has been recognized with Home Care Pulse’s “Best of Home Care” distinction for the second year in a row. Awarded to the top 25 percent of agencies in client satisfaction scores from Home Care Pulse, Martha & Mary AT HOME is ranked among a select few of the best agencies in the country. “We know that sometimes it is difficult to make care decisions when you don’t have specific experience with an agency. It was our goal to provide families with the ability to make an informed decision, have tangible ways to measure quality and help them find a comfort level when choosing an agency to work with,” commented Aaron Marcum, founder of Home Care Pulse. “It is an honor to be recognized for the outstanding work our caregivers and staff do each and every day. To be recognized as a leader in all thirteen measured areas of service is an honor and I’m proud of our team’s contribution to this great effort,” commented Randy Hardin, administrator of Martha & Mary Home and Community Services. “We are committed to helping seniors maintain their independence in the comfort and security of their own home and this accomplishment reflects that commitment.” The selection process for the “Best of Home Care” includes the evaluation of client satisfaction in the areas of work ethic, timeliness, knowledge of caregivers, compassion, appearance, communication, response to problems, overall quality of care, and caregiver performance, and more. “We want to congratulate Martha & Mary AT HOME for winning the “Best of Home Care” award and commend their commitment to placing high priority on client satisfaction,” concluded Marcum.

12 Kitsap Peninsula Business Journal • March 2012

Why Boomers are staying in the workforce longer By Julie Tappero, President West Sound Workforce Many of us running businesses today are members of the Baby Boomer generation (born between 1946 and 1964). In our younger years, we believed that we were going to change the world. Our huge presence in the workforce and the marketplace has indeed caused many changes. And as of 2011, the first of our generation turned 65, officially hitting retirement age. For years, researchers have been trying to predict how the aging of the Baby Boomers will impact the workplace. Reports from the Bureau of Labor Statistics show that in 2011, there were more people 55 and older active in the workforce than any time in the past 30 years. What are their intentions about their working future? AARP published a study in June 2011, showing that 76 million Boomers would be facing retirement in the future. But when Boomers in the workforce are asked about their intentions, 41 percent responded that they did not want to quit working. Prior to the Great Recession, a major concern for businesses was the coming brain drain, which would be caused by Boomers retiring in droves from the workplace, and taking with them their vast technical skills, historical knowledge, and honed industry-specific abilities. A question now is, will this brain drain still play out as predicted? It appears now that many Boomers will stay in the workforce longer as a result of the recession and the slow economic recovery. Researchers are finding that these trends vary based on industries and occupations. As an example, The Conference Board’s report, U.S. Workers Delaying Retirement, states that government workers are still likely to retire on time, as they have access to guaranteed pension plans. It goes on to say that workers with higher salaries who depend on higher quality lifestyles are more likely to delay retirement. On the other hand, workers in lower-paying, labor-intensive positions are more likely to retire early due to the harsher physical demands of their jobs. What kind of impact on our workplace will be caused by Boomers remaining longer

in the workforce? The Bureau of Labor Statistics predicts that by 2018, 25 percent of the workforce will be 55 and older. One area that will undoubtedly be affected is expenses related to health care. In the AARP study, only half of working Boomers said they are in good or excellent health. We can predict that companies will be spending more on employee sick pay, as well as health insurance and life insurance benefits. The National Institute for Occupational Safety and Health reports that older workers are less likely to have accidents on the job, but that when they do, their recovery tends to take longer. Workers comp costs, therefore, may also be impacted. It’s not uncommon to read articles today about the impact the recession is having on young people who are just graduating from college. Their career opportunities are already limited. As the Boomers stay put, it may further limit the advancement opportunities of the generations beneath them. The reverberations of these choices may have financial impacts for years to come, particularly on Generations X & Y. We know that a multi-generational workplace can become the source of conflict. As Boomers remain in the workplace past the expected age of retirement, the potential for conflict can increase. Many Boomers will be working transitionally as they phase themselves into retirement. Gen X and Gen Y will be moving into management and supervisory roles as Boomers transition out of them. Working Boomers may cling to their jobs, fearing that another opportunity may not come their way, while their generational counterparts will do corporate ladder hops in order to advance their careers. Boomers will need to stay current with technology and the utilization of social media in order to be respected by their younger supervisors. The Boomer generation that pushed tolerance and diversity in the ‘60s will also be required to stretch its own tolerance limits in order to accept young coworkers with new ideas about what is acceptable in the workplace. Imagine 70 year olds reporting to 30 year olds who sport tattoos or ear plugs; imagine a multigenerational workforce where gender identification is immaterial and accepted: the potential for conflicts between

employees is quite apparent! What about those Boomers who do plan to retire? Is your business prepared for that? A poll by AARP revealed that 48 percent of companies have not, and will not, do any strategic planning to analyze the impact on their businesses of retirement by their Boomer employees. There are many industries and occupations that will be severely impacted by Boomer retirements. Your company needs to do some forecasting and planning, and get ready. The AARP and the Society for Human Resource Management teamed up to create a free tool to help companies identify their potential skills gaps when their workforce faces retirement. Not only does it assess critical functions, it also takes a critical look at the programs in place to retain workers. This tool can be accessed at ex.cfm. Gen X and Gen Y are often characterized by their interest in flexible work arrangements, and companies are likely to find that these will also help to retain the talent and knowledge of their Boomer workers who are tempted by retirement. Innovative companies are working with “snow birds,” allowing employees to work from different geographical locations throughout the year. Part-time options keep future retirees in place, allowing companies to access their talents and use them to mentor and train replacements. As companies utilize more of a virtual workforce, corporations find themselves even bringing back retirees as contract or temporary workers, which enables businesses to beef up their staffs with experienced workers whenever needed. Teleworking gives Boomers the ability to work at home when needed; for instance, if they’re caring for aging partners, or working from a vacation home. Just as Boomers need to make changes in order to fit into organizations that may very well be led by, and staffed with, workers younger than themselves, company leaders need to set a tone that is welcoming and tolerant of an aging workforce. Age bias can be subtle or overt, but either way, it violates the Age Discrimination in Employment Act, which protects individuals age 40 or above, with

very few exceptions. This means workers, regardless of their age, must be offered opportunities to advance, to access training, to transfer to desired positions, to be rewarded for their performances, and to receive feedback and coaching. Study after study reinforces that Baby Boomers will be working far longer than their parents did. AARP’s study found that almost 50 percent of Boomers see themselves working until the age of 70 or more. 36 percent said they will never be able to afford retirement. An aging workforce is a new dynamic for business managers and co-workers to contend with. Strategies for capitalizing on Boomers’ assets, controlling inevitable conflicts, and minimizing potential pitfalls must be put into place in order for all parties to achieve success and fulfillment. (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 View her LinkedIn profile at 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.)

Clarification A February feature about Jeanneé Reneé Brown stated that one idea she’s contemplating for Jeanneé Reneé Salon is to “find the right manager, hire up-and-coming stylists and switch to the ‘old model’ of paying wages instead of leasing the space.” While Brown is considering that among the ideas for the five chairs available for lease, she and her current stylists, who have been part of the team for more than 15 years, will continue to serve their customers and are not leaving. They may be reached as follows: Tami Foster, (360) 692-1422; Belinda Farmer, (360) 6923464; Mercy Rannells, (360) 698-5711. To reach Brown, call (360) 692-1111.

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60 percent support allowing charter public schools in Washington By John Barnes A statewide poll released today by Washington Policy Center shows a strong majority, 60 percent, of Washingtonians support changing state law to allow charter public schools, and 64 percent say they support allowing lowincome and minority children in urban neighborhoods to attend such schools. Charter public schools are currently banned in Washington. If the ban is lifted, Washington would join 41 states and the District of Columbia in allowing children to attend independent charter public schools. Allowing charters as an education option is supported by the Obama Administration and the Bill and Melinda Gates Foundation. Charter public schools are independent, community-based public schools that are tuition-free and take all students. Currently 1.7 million children attend 5,453 charters. Charter public schools are popular. Nationally, 365,000 students are on waiting lists to attend a charter public school, enough to open nearly one thousand new schools. The new poll, conducted by Moore Information, asked respondents if they would support or oppose changing state law to allow charter public schools to open in Washington. • 60 percent said they would strongly or somewhat support allowing charter public schools to open. • 25 percent said they would strongly or somewhat oppose allowing charter public schools to open.

• The level of enthusiasm was much higher among supporters than opponents. Twice as many respondents (39 percent) said they strongly support allowing charter public schools as said they strongly oppose them (19 percent). Support increased when respondents were asked about allowing charter public schools to open in urban neighborhoods when state officials report traditional schools are failing to adequately educate low-income and minority children. • 64 percent of respondents said they support allowing charter public schools to serve low-income and minority children, while opposition dropped to 22 percent. • Again, the level of enthusiasm was significantly higher among supporters of allowing urban poor and minority children to attend charter public schools (42 percent strongly support), than among opponents (14 percent strongly oppose). Independent research shows charter public schools in other state have been effective in closing the achievement gap between white and minority students, especially in urban communities. The idea of changing state law to allow charter public schools found support in all areas of the state – 55 percent of respondents in Eastern Washington and 61 percent in Western Washington supported allowing charters, including 58 percent in King

County and a slim majority (51 percent) in Seattle. The highest level of opposition was reported in Seattle, where 32 percent said they strongly or somewhat oppose allowing charter public schools. Opposition in King County as a whole was 25 percent. When asked about serving lowincome and minority students, support for allowing public charter schools increased to 57 percent in Eastern Washington and to 65 percent in Western Washington, including 66 percent in King County and 59 percent in Seattle. Among survey respondents, 62 percent of men and 58 percent of women said they support public charter schools. Opposition was reported by 23 percent of men and 27 percent of women, with the remainder undecided. When asked about serving lowincome and minority children, support for allowing charter public schools increased to 67 percent for men and to 61 percent for women. Based on party identification, support for allowing charter public schools was strongest among Republicans (76 percent) and Independents (61 percent), while just

under half (48 percent) of Democrats expressed support. Party-based opposition was strongest among Democrats (36 percent opposed), followed by Independents (24 percent opposed) and Republicans (15 percent opposed). When asked about serving lowincome and minority children, support for allowing public charter schools increased to 53 percent for Democrats and 65 percent for independents, while remaining the same for Republicans at 76 percent. "We often hear that people in Washington don't want charter public schools. These findings show just the opposite," said Paul Guppy, Vice President for Research at Washington Policy Center. "Washington has been called an education reform backwater. It appears support for lifting the ban is growing as people learn about how charter public schools in other states are achieving amazing results for children, even in some of the country’s toughest urban neighborhoods," Guppy added. The poll was conducted February 19 and 20 and included 400 adults statewide. The margin of error is +/– 5 percent.

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March 2012 Kitsap Peninsula Business Journal • 13

Chase, America’s top volume SBA lender, increased small business lending by 52 percent in 2011 from a year ago, providing $17 billion of credit through nearly 400,000 new loans and lines to American small businesses. In 2010, Chase provided $11.2 billion in credit to businesses with less than $20 million in annual sales. “Since 2009, we have provided more than $35 billion in working capital, term loans for expansion, commercial mortgages, lines of credit and business credit cards to small businesses,” said Scott Geller, CEO of Business Banking at Chase.   For the past three years, Chase exceeded annual small business lending commitments and, at a White House-sponsored event last fall, pledged to maintain elevated lending volumes through at least 2013. Lending to small businesses in each of the 23 states with a Chase branch presence increased over 2010.  In Washington, the number was up 41 percent. The bank was also the No. 1 SBA lender in fiscal year 2011 in number of loans in several markets around the country, including Seattle.

Explore the world of international investments By Calvin Christensen You’re probably accustomed to measuring the progress of your investments, and the overall condition of the investment world, by checking on indexes such as the Dow Jones Industrial Average and the S&P 500. And since these types of benchmarks focus almost exclusively on American companies, you might get the idea that the best investments are located right here in the United States. But that impression would be false — because there are, literally, a world of investment opportunities beyond the U.S. borders. In fact, as of the end of 2010, U.S. stock markets constituted less than a third of the total global stock market value, according to the World Bank. And you can probably just look around at the products you use in your daily life to identify many successful foreign companies. Why invest a portion of your portfolio internationally? Here are a couple of reasons to consider: Growth potential The United States is a mature, highly developed economy. That doesn’t mean, of course, that we have no “upside” here. However, you can also find considerable growth potential in emerging markets –

14 Kitsap Peninsula Business Journal • March 2012

countries such as China, India, Brazil and Mexico that are characterized by younger, less mature economies. Diversification The world’s financial markets are somewhat dependent on one another, but that doesn’t mean they constantly move in unison. In any given year, the U.S. markets may be down, but international markets might be doing better. Consequently, if during that year, you had invested only in U.S. companies, your portfolio may have taken a hit. It’s important to diversify your portfolio by investing in many different vehicles, but you can also boost your diversification through geography. (Keep in mind, though, that diversification can’t guarantee a profit or protect against loss.) While international investing can be beneficial, it does not come without risks. For one thing, when you invest overseas, you may encounter political instability, which could threaten the financial markets of a country or region. Conversely, financial problems, such as the European debt crisis, can result in loss of confidence in individual governments. Also, you might experience currency risk, which means that changes in the value of the U.S. dollar relative to foreign c urrencies could harm the value of your

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investments. And in any given year, any market, foreign or domestic, may be down. Ultimately, you should probably limit your exposure to international investments to no more than 20 to 25 percent of your overall portfolio, with the exact amount, if any, depending on your situation – your goals, risk tolerance, time horizon, financial situation and other factors. You may also want add an international flavor to your

portfolio by investing in quality U.S. companies that do a considerable amount of business abroad. In any case, given the more complex nature of international investing, you’ll want to consult with a financial professional before writing a check. Still, consider the international investment world. With a little exploring, you may discover some good possibilities out there.

Kitsap Bank triples annual earnings Kitsap Bank announced that 2011 earnings tripled over the previous year. Profits for the twelve months totaled $7.5 million, versus $2.4 million in 2010. Assets for the bank now total $903 million, up $16 million for the year; while non-performing assets have continued to decline, and are only 1.2 percent of total assets — one of the lowest ratios of any bank in the State of Washington. Kitsap Bank remains highly liquid, largely due to strong core deposit growth, which increased $19 million for the year. Deposits totaled $775 million at year end. The company continues to maintain a strong capital position, after successfully completing a $12.4 million capital raise at the parent level, most of which was down-streamed to the bank. Kitsap Bank’s total capital exceeds $100 million, with a Risk-Based Capital Ratio of 16.14 versus 13.94 percent one year ago. “Kitsap Bank’s 2011 performance was our strongest in the past three years,” said Jim Carmichael, president and CEO. “We are very proud of our track record. Despite continued weakness in the economy and lack of loan demand, we have been able to reduce expenses, keep assets strong, grow our investment portfolio, and increase income. Many of our peers are gone in our market; and many other banks are still dealing with problem loans, while we have that well behind us.”

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Are the rich paying enough Federal Income Tax?


By Christopher Fraizer, CPA Many of you may be caught up in the swirl of the Republican primaries. And as with many other things that swirl, such as carnival rides, you may be feeling nauseated. One of the big headlines has centered on how much tax Mitt Romney is paying in Federal income tax. Why is Mitt Romney only paying around 15 percent? In order to understand this, you need to know the difference between ordinary income and capital gain income, because they are taxed differently. First, ordinary income is income you receive from wages (your W-2), commissions, self-employment and bonuses. To think of it another way, you usually earn ordinary income by the sweat of your brow. The current ordinary income rates are 10 to 35 percent depending on your income. Capital gain income is defined as gain from the sale or exchange of a capital asset (such as a stock, bond, real estate, etc.) If you held an asset for more than a year and sold it at a profit then this profit is taxed at 15 percent. Dividends from stocks you have held for a year are taxed at 15 percent as well. Sales on property held less than a year are at ordinary rates. Mitt Romney derives the majority of his income from long term capital gains, rather than ordinary income. Hence, his tax rate is closer to 15 percent. Why do the rich get a tax break? Well the words rich and tax break are a matter of opinion. The better question is what tax breaks are available to those of us who are not rich? Did you know that if you had capital gain income your rate could be 0 rather than 15 percent? Mitt pays and you could pay absolutely no tax on capital gains? Long term capital gains rates for 2011 for people in the 10 and 15 percent tax bracket are actually 0 percent. Could you possibly be paying lower capital gains taxes than the rich already? Another thing to consider – in 2009, 47 percent of American households paid no Federal income tax at all. In 2010, that same figure was 45 percent. I will make an educated guess that nearly half of American households will not pay Federal income taxes again in 2011. No politician is addressing the issue of whether these Americans should be paying some tax. Most of these taxpayers are not the wealthy so this discussion would be political suicide. With trillions in deficit spending at what point do we address this issue? President Obama is intent on taxing the rich (which he still hasn’t managed in 3 years), saying that he would increase taxes on anyone making over $250,000 per year. He has also stated that Warren Buffet’s secretary shouldn’t be paying a higher tax rate than Warren Buffet. Well what does a secretary make per year? Robert Half’s National Salary Survey for 2011 puts an executive assistant at $35,750 to $49,000 per year. So the median figure would be $42,375. Assuming he/she is single, doesn’t own a home and is not entitled to a myriad of other deductions, this person would have basic deductions available to every single person totaling $9500. This would bring taxable income to $32,875. What tax bracket is that? Wow, it is a whopping 15 percent! Amazing, this is same tax rate that the wealthy are paying in long term capital gains! The claim sure sounded egregious when President Obama said it. I don’t think we should fault any wealthy person for paying the taxes that the law requires. Though you may be angry at the wealthy for paying their legally required taxes, it isn’t their fault. Our elected leaders make those laws. There are some wealthy folks, such as Warren Buffet, have said they think they should and would agree to paying more taxes. If that is your desire, it is easy. Just write a check to the US Treasury and in the memo include a note that says “For securing the blessings of life, liberty and the pursuit of happiness.” So far Buffet hasn’t reported voluntarily paying more than what is required by law. Some disgruntled people reading this article may make one off arguments that you need to figure in Social Security tax, Medicare, sales tax, property tax, etc. We are comparing apples to apples in this article Federal income tax to Federal income tax. If you wanted to add up all the taxes people pay, including ones the most of the wealthy pay such as estate tax, transfer tax, kiddie tax, this article would fill pages and pages. Not only that, it would depress everyone who read it. It’s bad enough not seeing the sun in Kitsap for 6 months, especially during 12 weeks of tax season.

What do you need to begin the collection process? By Paula Bartlett, President Saba & Associates The first thing you want to do as a business owner/manager is avoid delinquent accounts. Nobody wants to deal with the hassle of calling or sending dunning letters to consumers for goods or services provided. You just want to provide the goods or services and be paid, right? First things first… My advice when working with a consumer is to assume you may be put in a position to try and collect your money at a later date. If your put in such a position ask yourself what will you need if you have to begin the collection process. You will need the individuals name and a spouse’s name if there is one. Remember this is a community property state and both individuals are responsible for payment if

the debt is incurred while the parties are married. Additionally, if you are dealing with someone who tells you they are not responsible because they divorced their spouse, find out when the divorce or legal separation occurred. They are responsible if married while the debt was incurred. Make sure you have a current address including email address. Try to obtain the place of employment for both parties and always try to get signatures whenever possible. If the services provided are for a child both parties are responsible weather married at the time the debt was incurred or not. If you ask the right questions at the time of service you will be establishing the sense of urgency necessary to secure payment and help avoid wasted time pursuing a delinquent account.

Holly Ridge Center receives donation from Suquamish Tribe The Holly Ridge Center of Bremerton recently received a donation of $1,500 from the Suquamish Indian Tribe to help supplement the services it provides through its family driven Autism and Mental Health Behavioral Services Project, “High Five;” the only program that provides comprehensive early intervention services to children with autism in Kitsap County. Holly Ridge Center is honored to partner with the Suquamish Tribe to provide support to children with special needs and its families, and would like to recognize it for its generous donation.

March 2012 Kitsap Peninsula Business Journal • 15

Apple rumoured to have placed mega-orders for retina displays Is iPad 3 scheduled for March release? By Lucy Hedges So far, all claims surrounding the March release of the iPad 3 have been taken with a large helping of salt. The latest claim — from iMore and “sources who have been reliable in the past” – has March 7th marked for the official release of the iPad 3. According to 9 to 5 Mac, iMore goes on to say the next-gen iPad will rock the much talked about 2048 x 1536 Retina Display, A6 quad-core processor and will potentially have 4G capabilities. There was also mention of an iPhone 5 with LTE super-powers. Although it’s thought the iPad 3 may be 1mm thicker than its predecessor, that’s a

necessary sacrifice to allow for the eyeball-slicingly sharp Retina Display. When rumours concerning Apple’s choice of screen started doing the rounds, reports confirmed three manufacturers — Sharp, Samsung and LG — were involved in the project. Since then, there has been a lot of talk about Sharp building the iPad 3’s Retina Display, without much mention of the other two. Until now. ChinaTimes is reporting that Apple has placed an order for a whopping 65 million 264PPI Retina Displays from both LG and

Samsung. It’s also being reported that both have already begun production. Whether or not this figure includes orders from Sharp remains unclear. To put this figure into perspective, 9 to 5 Mac notes that Apple ordered 40 million displays for the iPad 2. So if true, Apple is thinking big this time round, with a 60 to 70 percent increase in LCD panel orders over the iPad 2. With the iPad 3’s rumoured release date just around the corner, expect a flurry of speculation in the coming days.

Online shoppers are rooting for the little guy By Stephanie Clifford and Claire Cain Miller Harold Pollack used to spend $1,000 a year on Amazon, but this fall started buying from small online retailers instead. The prices are higher, but Dr. Pollack says he now has a clear conscience.

“I don’t feel they behave in a way that I want to support with my consumer dollars,” Dr. Pollack, a professor in Chicago, said of the big Internet retailers. Giant e-commerce companies like Amazon are acting increasingly like their bigbox brethren as they extinguish small

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competitors with discounted prices, free shipping and easy-to-use apps. Big online retailers had a 19 percent jump in revenue over the holidays versus 2010, while at smaller online retailers growth was just 7 percent. The little sites are fighting back with some tactics of their own, like preventing price comparisons or offering freebies that an anonymous large site can’t. And in a new twist, they are also exploiting the sympathies of shoppers like Dr. Pollack by encouraging customers to think of them as the digital version of a mom-and-pop shop facing off against Wal-Mart: If you can’t shop close to home, at least shop small. “Folks are exercising their desire to support local stores where local is not just in their town, but anywhere in the country,” said Michael Walden, a professor who studies regional economics at North Carolina State University. “A large number of Americans have a general suspicion of bigness in the economic world – they equate bigness with power, monopoly.” Lacy Simons, owner of Hello Hello Books in Maine, a small store with an ecommerce site, says she is seeing customers “cement their determination to shop local” – which on the Internet, means shopping at the smaller vendors – even when the big sites offer lower prices. “We know there’s only so much that we can do to compete against them, so you end up relying on what hopefully becomes an emotional or personal connection with the retailer online,” Simons said. The battle between supersites and small online retailers became pitched this holiday season, as the big sites raked in the money. In November and December, the 25 biggest online retailers, including, and, received 70 percent of ecommerce dollars spent, an increase of three percentage points over last year, comScore said. Little Guy, page 17

Boxlight releases audio presentation solution Boxlight announced the release of its audio speaker and wireless microphone package, the SoundLite+ which is a digital speaker system combining two high efficiency, full range 10W speakers with a dual channel 20W Class D amp and wireless hand held mic/transmitter. It uses frequency expansion technology to reduce the signal noise and enhance the transmission reliability of a wireless mic. Microphone priority allows for audio pause during presentations to enable speaking priority. The transmitter can be used as a stand-alone microphone as well as match to multiple inputs including other audio players, music players, and cell phones, enabling full room audio and conference call capability. The SoundLite+ is easy to install with snap-together assembly and auto channel sync for connectivity. Alternatively, it can be set on a table top or rolling cart to be used in multiple rooms. “The original SoundLite was launched last year to enhance audio in presentations where projection was being used. The natural next step was to include microphone capability combined with flexible transmitter inputs to enhance audio from multiple source options,” said Jeremy Peterson Boxlight product manager. “As with other Boxlight products, the SoundLite+ is reliable, simple, and affordable,” Peterson added. Boxlight in headquartered in Belfair and can be reached at or (360) 464-2119.

Google Android patent filing: Voice, pattern unlock Google is working on new methods for allowing users to unlock Android smartphones and tablets built by Android OEMs, a move that could help Samsung and other OEM partners work around the "slide to unlock" method Apple has patented. The Patently Apple blog said Google is working on ways to let users unlock their phones with their voice and through using two icons. While computers require passwords, phones and tablets tend to ask for four-digit passcodes or some sort of gesture-based pattern to unlock the device. One new method of secure device unlocking Google is proposing requires a user to drag and drop an application icon on top of an unlock icon on the touchscreen. This action then might also launch an application, such as Angry Birds or Gmail. Google proposed an alternative authentication method where a user enters a passcode, such as a PIN number, and then an audible password prompt that leverages the company's voice-recognition technology. Google filed the patent application in 2010. However, the company said those patent filings do not indicate the company will release those methods in products.


wonder if I could find this on Amazon,’ ” she said. “I think that some people never really thought about the ethics.” Amazon said it is helping small online businesses stay afloat by allowing them to sell on Amazon, through its Marketplace program, and take advantage of Amazon’s large customer base, technology and marketing. Sellers pay a percentage of revenue in return. “For a lot of these small and medium businesses, this isn’t something they would be able to scale up and provide themselves,” said Peter Faricy, general manager of Amazon Seller Services. He added that third-party sellers’ items were included in promotions like Price Check.

Yet some small retailers with ecommerce sites say that no matter what consumers say, supersites’ prices are just unmatchable. Mike Stewart opened Feather & Fly, a sporting-goods store in Chattanooga, Tenn., eight years ago. As online stores started to pull away his customers, Stewart began selling some products on the Web. Online, he found, “there’s no way I could compete against a big-box type store that could have massive inventories or cut deals to get better rates,” he said. “We did have good customer loyalty here,” said Stewart, as he boxed up the inventory left over after his going-out-ofbusiness sale, “but the Internet is a killer.”

March 2012 Kitsap Peninsula Business Journal • 17

from page 16 Amazon, the world’s biggest Internet retailer, has been the leader in aggressive promotions that small sites can’t afford to match – and has received the most criticism. This holiday season, Amazon offered price cuts on almost all holiday gifts; it can do this in part because of its size and profits from other businesses, like cloud-computing, analysts said. The company offered free overnight shipping on thousands of items, and advertised its price-checking app by giving shoppers 5 percent off items on Amazon that they scanned in a store. Amazon says it is giving consumers what they want. But the price-check promotion drew special ire; Senator Olympia Snowe, Republican of Maine, called it “an attack on Main Street businesses.” It is contributing to “a reputation as a bully,” said Sucharita Mulpuru, an ecommerce analyst at Forrester Research. Reflecting that, in a reaction similar to what occurs when Wal-Mart’s open in small towns; some consumers say they will not support supersites any longer. But the economics of that decision are not always sound, said Professor Walden of North Carolina State. If a small site is selling products from a national manufacturer, for example, to people scattered around the nation, it has little effect on local vitality, he said. Dr. Pollack, the Chicago professor, says that even if he is not supporting Chicago retail with his online purchases, he is not supporting what he calls big business’s bullying ways. Emily Powell, the chief executive of Powell’s Books in Portland, Ore., which has an e-commerce store, said she attracts some shoppers with similar attitudes. “People come because they want to support an independent and feel good about it,” she said, but especially in a recession, “you can only guilt people into coming to you for so long.” That’s where the other strategies kick in. Some stores respond by carrying exclusive items at their sites. Powell’s Books, for example, offers a subscription service through which it chooses a new book and includes an extra item like a related book or candy – personalized touches that it says big sites can’t match. Other sites try to play hardball by refusing to carry what the big stores do, among other tactics. “What I can’t compete with is one day, for whatever reason, Amazon will suddenly drop a price below wholesale cost,” said Ali Wing, the founder of the baby store Giggle. She has stopped carrying products, including a car seat and certain toys, when she can no longer compete. “I won’t take that brand damage and have you have a reason to think that Giggle is expensive.” Lori Andre, owner of Lori’s Shoes, an online and physical store based in Chicago, is asking vendors to give the shoes that Lori’s carries different model names than it gives other stores, or to put a different label inside, so shoppers can’t compare prices with a Zappos. (That may not win over

shoppers; Best Buy, when it created its own labels to prevent in-store price checks on electronics, drew criticism from consumers.) Lesley Tweedie, the co-owner of Roscoe Village Bikes in Chicago, introduced an online marketplace for small retailers, Little Independent. “There’s been a response from people who value a different style of shopping,” she said. Tweedie was so annoyed when she saw consumers using smartphone apps in her store that she began a “Buy It Where You Try It” campaign on Twitter and Facebook. “I can’t tell you how often that happens in the store, where someone is asking my advice and then actually says out loud, ‘I

18 Kitsap Peninsula Business Journal • March 2012

March 2012 Edition

Events And Activities Thursday, March 1 Developers Council- 7:30 a.m. Tuesday, March 6th Builder Breakfast-7:30 (Family Pancake House — Kitsap Way) SHS Committee Meeting-NOON Wednesday, March 7th Remodeler’s Council- 4 p.m. Friday to Sunday, March 16th-18th Peninsula Home & Garden Expo Kitsap County Fairgrounds

Thursday, March 29th Executive Committee- 2:00 p.m. Government Affairs Committee 2:30 p.m. Board Meeting, 3:30 p.m. Wednesday, April 4th 2012 Auction Committee Meeting 4 p.m. Thursday, April 5th Developers Council 7:30 a.m. Golf Committee Meeting 4 p.m. (Rolling Hills Golf Course) Monday, April 10th Builders Breakfast 7:30 a.m. Tap Rock Grill - Poulsbo Wednesday, Aril 18th WSU Energy Code Class (BIAW) 8 a.m. Auction Committee Meeting 4 p.m.

Members can get EASY rebates, MONEY back from L&I, and DISCOUNTS at dozens of retailers. Members of the Home Builders Association of Kitsap County have access to buying power only a trade association like ours can provide. As a local member, you are also a member of the state and national associations also. Through membership you are no longer just one company, but instead you have the power of a collective made up of hundreds and thousands of companies. REBATES — While the term rebate may conjure up memories of photocopying the original receipt and attaching cut out codes from the box and mailing it only on a full moon, etc. --that was then and this is now. Through the HBA and the BIAW, members can submit a simple form, reporting which manufacturer’s products they used in their construction projects and receive a rebate for using manufacturers in the program! Even if it was your sub that actually selected, purchased, and installed the item, you as the GC will get the rebate. It’s really that simple. Heritage Builders, an HBA member and Rebate Program participate recently posted on Facebook that they had received their quarterly rebate check and it was easy and covered almost half their annual HBA dues. For more information, please visit BUYING POWER — As members you have access to discounts through two programs — Member Advantage and National Purchasing Program. The National Association of Home Builders offers the Member Advantage program. Through it you can receive discounts from GM, Office Depot, Lowes, AVIS, and many others. Why pay more than you need too? Looking at a computer? Check out the Dell discount through Member Advantage. Visit for the current list of participating retailers and service providers. But wait! There’s more! You also benefit from the National Purchasing Program. Like the NAHB Member Advantage, the NPP program has relationships with other retailers and service providers that want to give you discounts, including Verizon Wireless, Shred It, and Staples. Log into and register so you can begin getting the benefits. RFUNDS on L&I PREMIUMS — If you have employees and a safe work record, you should consider participating in the BIAW Retrospective Ratings Select Program. While there is a fee to join this program, and it is a risk pool (not a guarantee), builders have been receiving refunds on their paid insurance premiums for years. You can find out what your past refunds would have been, had you participated, by contacting BIAW and authorizing them to check. Based on that information you may decide to participate. The only way to get any money back from L&I is by participating in a retrospective rating pool. Why not learn more and decide if it’s for you? Contact BIAW at or call 1-800-228-4229.

2012 OFFICERS President . . . . . . . . . Wayne Keffer, CGR, CAPS First Vice President. . . . . . . . . . . . . . . Robert Baglio Second Vice President . . . Judy Mentor Eagleson Treasurer . . . . . . . . . . . . . . Randy Biegenwald Secretary . . . . . . . . . . . . . . Dee Coppola, CGA Immediate Past President. . . Justin Ingalls, RCS

2012 BUILDER & ASSOC. DIRECTORS Derek Caldwell, CGB • Judy Granlee-Gates Jason Galbreath • David Godbolt, CAPS, CGP, CGR Kevin Hancock • John Leage Robert Lubowicki • Leslie Peterson, CGA Shawnee Spencer • Jim Way, CGB

2012 STATE DIRECTORS Robert Baglio • Derek Caldwell, CGB Lary Coppola • Judy Mentor Eagleson Justin Ingalls, RCS • Wayne Keffer, CGR, CAPS Robert Coultas • Ron Perkerewicz

2012 ALTERNATE STATE DIRECTOR John Armstrong • Karla Cook • Walter Galitzki Greg Livdahl • Brent Marmon


2012 NATIONAL DIRECTORS Derek Caldwell, CGB • Judy Mentor Eagleson

2012 ALTERNATE NATNL. DIRECTORS Michael Brown • Jeff Coombe

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

2012 COUNCIL & CHAIRS Build a Better Christmas. . . Randy Biegenwald Built Green . . . . . . . . . . . . . . . . Walter Galitzki By Laws & Nominations . . . . . . Justin Ingalls Developers Council . . . . . . . . . . . . Rick Cadwell Golf Classic . . . . . . . . . . . . . Shawnee Spencer Govt. Affairs Cmte . . . . . . . . . . . Robert Baglio Remodelers Ccl Chair. . . David Godbolt, CGR, CAPS Membership . . . . . . . . Judy Mentor Eagleson Parade of Homes . . . . . . . . . . . . . Dee Coppola Peninsula H&G Expo. . . . . . . . . . Ardi Villiard Peninsula H&R Expo . . . . Volunteer Needed

HBA STAFF Executive Vice President . . . Teresa Osinski, CGP Expo & Events Director . . . . . . . . Toni Probert

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Thursday, April 19th Spring Fling McClouds-East Bremerton

Why leave money on the table?

March 2012 Edition

I am excited for the home show this year! As an annual participant I look forward to the boost it brings in sales and Wayne R Keffer have come to think of it as the Construction Inc. start of the building season. 2012 President This year the home show could be the best we have ever had. HBA staff and Expo committee have been planning for months and have been able to secure great sponsors that will raise the bar this year and create a bigger draw from the community than in the past. We are also excited to have regional gardening celbrity Ciscoe Morris on hand Saturday, March 17th at 2:30. If all goes as planned the county will be rolling out a streamlined deck permit process just in time for the summer ’s deck building season. They are hoping to be able to do seminars at the Expo in March. The streamlined permit process will help every Kitsap citizen by cr eating an easy path, encouraging people to get permits, thus ensuring safe decks for families and friends to enjoy for years to come. (By the way thanks to health dept, DCD staff and the Board of County Commissioners for making this important improvement; it will help Kitsap citizens and building community.) By the way, if you are not planning to have a booth in theExpo and are an HBA member, you can be a an Expo greeter. I have been told by past greeters that this is a great opportunity to engage the public while building relationships with other HBA members. NEW! TIME SENSITIVE! Have you completed a new construction project in the past 2 years? If yes! Get excited! The 2012 Builder ’s Best Awards are fast approaching. This new program is designed as a way to showcase our talented new construction builde r members. The applications have been sent out and we are anticipating great participation. If you haven’t received the application call the HBA and get one so you can take advantage of this opportunity to show off your talents. Not a member yet? That’s okay. Join the HBA so you can also compete in the 2012 Builder Best Awards. On March 6th there is a Builders Breakfast in Port Orchard at the Family Panc ake House. I often wonder if every one is aware of what a Builders Breakfast is for. It is a great opportunity to engage with other members and local elected officials in an informal way. The discussions can be lively and enlightening. These events, held throughout the county over the year are open to all HBA members. We encourage HBA members to attend. Please RSVP to the HBA. The event on March 6th wil l include newly elected Port Orchard Mayor, Tim Matthes as our special guest. Be sure to join us. If you can’t make it this month, watch the calendar. We hold these events several times over the year. A special thanks to Gale Culbert, Joe Hurt, Greg Livdahl and Karla Cook for accepting my invitation to be appointed, or reappointed, as Directors of the HBA. Your willingness to serve is valued and makes us a better association. Thanks for the opportunity to serve.

Wayne Keffer CGR, CAPS

As we enter the third month of the year, there seems to be a sustained, general sense of optimism and there are some CGP legitimate reasons for it. Housing is at its most Executive “affordable” level in almost 40 Vice President years (HUD says 40 and NAHB says 20, but either way it is a positive thing.) The Fed announced that interest rates will remain at this record low level for many more months, and here, locally, we continue to benefit from the powerful employment power of our military bases, water focused employers, and reasonable commute options to the “other side.” As we move into Spring we expect to see our housing market improve as more of the foreclosed/distressed properties will be purchased and no longer pull down the “regular” market. Recently, the majority of closed sales were this type of product. While it is frustrating when you understand the effect these properties have on the local real estate market; it is good news that those homes are clearing out — they won’t simply disappear, someone has to buy them to free up the market for traditional transactions. So again, this is a positive sign. The HBA has already held numerous meetings with our local elected officials and is actively working on behalf of the entire industry on the completion of the County’s Title 16 rewrite; Title 21 updates, and the County’s Shoreline Master Program update. While we do not agree with everything the County’s elected officials propose or adopt, we are fortunate to have positive relationships that allow us to speak candidly and continue to emphasize what is important to the construction industry. We ask that all businesses in Kitsap County consider joining the HBA and supporting us in our efforts to support you. The reason “housing” is one of the key economic indicators reported in any economic forecast, news report, or State of the Union, is because, “As the housing industry goes - - so too goes the economy.” However, our interests aren’t just in housing. We work on behalf of commercial builders, land developers, current and future home buyers and business owners. We work to support good public policies that will allow Kitsap to continue to have unrivaled beauty, access to recreation, and communities that you want to work in and come home to. Our board of directors is working on encouraging business owners to join the HBA and support our efforts to support Kitsap’s economy. Visit our website at and scroll through the hundreds of company members. The variety of members should convince you that there is a place here for you too. For about $1.30 a day, membership ensures the HBA can continue to be at the table on behalf of Kitsap’s economy and allows you access to other valuable benefits I’d love to talk with you about, including Health Insurance. Many of you may have recently found out that KPS would no longer carry smaller companies and individuals. It’s possible the BIAW insurance program may be an option. You do not need to be a member to receive a free insurance quote. Please don’t hesitate to call for more information.

Teresa Osinski

March 2012 Edition

Government Affairs Committee

Regulations: When is enough — enough?

Remember the term “Uncle” when you were a kid. Robert Baglio When you had enough and The BJC Group couldn’t take it anymore you 2012 Chair cried, “Uncle!” Well, I’m crying, “Uncle,” because enough is enough. The construction industry must be one of the most regulated businesses in the United States, certainly in this State. The new or updating of existing regulations is a never ending process. It is like the ocean. The waves just keep pounding relentlessly against the shore in a never ending cycle; much like the code update cycles that occur as regularly as the change of the seasons. For instance the Building Code, the Fire Code, the Plumbing Code, and the Electrical Codeall go through regular scheduled cycles of national reviews and updates. Then there are the State regulations that are also routinely updated. The current State regulation being updated is the Shoreline Management Plan. This regulation is currently going through a 2 - 3 year updating process. Can you say, “No net loss?” I’m sure you can. Let’s not forget the recent, 2 year-old now, update of our storm water ordinance and believe it or not another update is on the way. We have all started to get used to the latest update to the Washington State Energy code. Boy this is proving to be a learning experience, have you ever heard of “daylight harvesting?” If you haven’t yet, you certainly will. And we can’t forget about the recent enactment of the lead based paint regulations. Even with all these existing codes and ordinances and their incessant update cycles, every time a new legislative session rolls around our Legislature comes up with a myriad of new worthwhile and necessary laws that should fix some alleged problem or make the world a better place. A couple proposed bills that I have heard about this legislative session include a regulation that makes it mandatory that all carpet be recycled or the brilliant idea that the before a private building can be completed and approved for occupancy by the local City or County Building Department a list of all subcontractors working on the project must be provided to the State for them to review and confirm all the subcontractors have paid their taxes. Now I am sure this will not add any time to the issuance of the occupancy permit so the Owner can move into their new or renovated facility in a timely manner. With each code update or implementation of a new regulation or ordinance, the rules become more restrictive, more complex, and more costly. These costs are ultimately passed on to the consumer. It becomes more expensive to build a house, perform a renovation, or construct a new commercial building. At a time when it is difficult to make projects pencil out because the appraisals come in so low they do not support the actual cost of construction you would think there would be a reprieve or a respite, but the regulatory authorities continue piling on the requirements and red tape without any apparent recognition or comprehension that their new or updated code is increasing the cost of construction, making things less affordable for the consumer and exacerbating the already dismal economic situation. At what point will they realize the impacts and consequences of their actions. Well enough is enough! UNCLE! Give us a break and stop the onslaught of more restrictive regulatory requirements. A balance must be reached.

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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360-598-3106 • 206-714-2948 22285 Stottlemeyer Road • Poulsbo (Next to Bond Rd. & Gunderson Rd.) Bonded & Insured License #CREATCI964BB

Work Days Remaining — Did you know? As of March 1, 2012, there are only 166 working days remaining for Kitsap County Government. How is that possible when March 1 is only day 61 in a 365 day year? Due to the County’s ongoing reduced work week, holidays, and weekends, County employees-like those in the County’s Department of Community Development — have only this many days left in all of 2012 to transact business. 166 is a reasonable estimation for all the other local building departments that are on reduced work weeks as well as key County departments like the Auditor’s and Assessor’s offices.

Peninsula Home and Garden Expo! The Biggest & Best Home Show West of Seattle!® March 16-18, 2012 Kitsap Fairgrounds and Event Center Three days! Three buildings! Three reasons: You like it! You want it! You need it! Get your admission discount coupon on line and printed in the Kitsap Sun, at local businesses, in all the Newspaper Group’s weekly papers, and at Remember, children under 12 are always free, and teens, seniors and active duty military are discounted. Highlights last year included, Habitat for Humanity’s Surplus Building Materials sale, great garden art and water features, energy info RePower programs countywide, interesting items to buy, great food, and fun activities for the kids. This year, will include all that AND special guest speaker, Ciscoe Morris on Saturday afternoon! For all the details, please visit Look at the seminars schedule in the Official Expo program printed by the Kitsap Sun on Tuesday, March 13th , or visit for the details. The Peninsula Home and Garden Expo is brought to you by the Home Builders Association of Kitsap County, Kitsap Sun, Wave Broadband, Kitsap Credit Union, HiLine Homes, and Puget Sound Energy.

March 2012 Edition

Welcome New Members Brian Burdick Economy Air Temp Inc. PO Box 949 Silverdale, WA 98383 360-692-7180 Sponsor: Karla Cook, Cook Construction

Delpha Olier Express Septic Service PO Box 1938 Port Orchard, WA 98366 360-895-5412 Email: Sponsor: Robert Baglio, The BJC Group

Thank You Renewing Members Over 40 Years Evergreen Lumber Inc Land Title Company Over 20 Years Northwest Cascade Inc Olympic Property Group Over 15 Years BJ Builders Over 10 Years Camp Corporation

Over 5 years AmericanWest/ Viking Bank Robison & Sons 2 years and Over Storeybuilding LLC Krazan & Associates First Year Renewals Better Bilt Storage Barns Estes Builders

5 Key Trends to Consider at the 2012 Peninsula Home & Garden Expo According to a February 2012 article in Consumer News of, the recent National Association of Home Builders’ International Builders Show included some important trends that homeowners should consider. Even though housing hasn’t been more affordable in the U.S in almost 40 years, and interest rates are expected to remain at historic lows for many more months, many current homeowners are finding it a necessity to stay put. If that’s you, you might consider the following trends and upgrade your home for your own comfort, cost savings, and improved market position when you do decide to sell. If you are in the market to buy, these trends will be important as you evaluate your housing options. Review this list and talk with the hundreds of vendors at the Peninsula Home and Garden Expo this month (March 16, 17 & 18). Solar Options: Today’s solar choices are many and aren’t just for on your roof. Solar can be incorporated into the physical roof itself, set on a shed, and even incorporated into your home’s glass and window coverings. Upping the Curb Appeal: Homeowners are looking at easy ways to bring their home into the current century, let alone decade. New computer modeling and other services help homeowners to select siding, windows, trim, colors, etc to up that WOW factor. Conserving Water Isn’t Just a Novel Idea Anymore: The Pacific Northwest is blessed with heavy rain and snow, wonderful and powerful rivers, and the benefit of relatively inexpensive hydro power. However, it is not a limitless resource. Using simple techniques like aerators in your faucets, dual flush toilets, and other relatively inexpensive updates you can immediately and measurably reduce the amount of water you use. Recently the HBA did this as a part of the Kitsap Energy Upgrade project and you can too. Making Your Home Safe for You and Your Aging Parents: Around 30% of all households in the US are referred to as “multigenerational.” In other words, right after your youngest child moves out; Mom and Dad are moving in. Further, even if you don’t have a multigenerational home; many homeowners are considering changes that will keep their home safe as they age and elect to stay in their home as long as possible. Today’s builders and remodelers are following this trend closely, as are many architects. Look in the HBA membership listing for builders with the CAPS designation following their name. That stands for Certified Aging in Place Specialist. They will be able to help you identify changes for the ages. Smart House: Watch for trends in technology that will have your home monitoring its own “behavior ” and adjusting lights, heat, and other key controls (like a bath fan that turns on when it senses humidity) without much intervention from you. Imagine a world where you don’t have to remind your kids to turn on the fan or turn off the lights? Crazy.

24 hour emergency clean-up


O T ff In he eri Se Be ng rv st ic e



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• Minor plumbing, electrical and carpentry • Minor roof repair and painting

Janitorial  Oldest Shredding Company in Washington  On-Site & Off-Site Paper Shredding Service  Certificate of Destruction Provided  100% Recycling Program for All Shredded Material – Nothing goes to the Landfill

American Data Guard NAID AAA Certified Destruction Company

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• Daily, weekly, monthly rates • Construction clean-up • Window and wall washing • Carpet shampooing • Floor stripping and waxing

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Power Parking Lot Services • Parking lot sweeping • Parking lot washing • Parking lot striping • Snow removal


373-4265 Commercial • Medical • Executive

Land Title announces retirement of Gene Kennedy

Tim Ryan Construction, Inc. wins contract with Gravitec Systems Inc.

Steve Green named to lead the company Land Title Company has announced that after 39 years and 10 months at the helm, President & CEO Gene Kennedy is retiring. He has served in the capacity since 1991. Kennedy is a well-known civic leader, having served on numerous boards over the years, including the Bremerton Chamber of Commerce and the Washington Land Title Association. He was a 1985 Thunderbird Award recipient, and founded the Annual Bellringer Golf Classic — a charity golf tournament that has raised over $100,000 over the last 23 years for the Salvation Army. “My family kept me grounded throughout these forty years.” Kennedy said at his retirement party. “The support of the board of directors and of the numerous employees of Land Title Company has

meant a lot to me and I feel very blessed to have had the career I’ve had.” The firm’s board of directors elected Steve Green to fill the President/CEO position. An employee for over 26 years, he assumed the duties of vice president and Kitsap County manager of the company in 1993, and began serving in his new capacity effective Feb. 1. Also an active participant in community activities, Green too has served as Steve Green president of the Bremerton Chamber of Commerce and the Washington Land Title Association, remaining active in both organizations, and

is a member of the East Bremerton Rotary. Named as vice president and taking over Land Title Company’s operations is Kris Mihulka. Mihulka has been with Land Title for the last 26 years — becoming its assistant manager in 1993. “Kris originally came to work for Land Title Company while still attending high school.” noted Green, Kris Mihulka “She has worked in all departments of this company and brings a tremendous breadth of experience and enthusiasm to her new position. I am personally very excited for both her and Land Title.”

Realtors present awards and install new 2012 officers The Kitsap County Association of Realtors recently held its annual awards and installation banquet at the Kitsap Golf and Country Club. Washington Attorney General Rob McKenna, the Realtorendorsed candidate for Governor, served as guest speaker. Washington Realtors President Faye Nelson installed the newly elected officers and directors of the Kitsap Association: Gary Anderson, president; Lynn Williams, president-elect; Kathy Berndtson, secretary; and State Director Thor Holm as treasurer; Wendy Crenshaw, Dino Davis, Karen Ebersole, Marcus Hoffman, Joana Hoover, Penny

McLaughlin, Kinam Sohn, John Taylor, and Shari Weber as directors. The newly elected officers and directors will join returning Directors Andee Bemrose, Jackie Killoran, Pablo Lozano, Jim Roberts, Dana Soyat, and Andrew Welch. The Association presented the following awards for outstanding service in 2011: • REALTOR of the Year: Jim Roberts of Reid Real Estate • REALTOR Special Achievement: Andee Bemrose of Windermere Real Estate • Jenks Beard Community Service Award:

Schulz sells another commercial building

Retail/Office Building For Sale

Partners In Success Taking it to the Street Ministries

Pacific Northwest Title along with other Kitsap County title and escrow companies and area real estate offices came together in support of “Taking it to the Street Ministries,” for the Bremerton Rescue Mission. Thank you to all who donated.

The event was a great success, but the need in our community is still there. “Taking it to the Street Ministries” is always taking donations of clothing, blankets, etc and are willing to pick-up items as well. Please feel free to contact them at 360-373-3428 or your local Title Representative and we will make sure your items are delivered to them.

816 Pacific, Bremerton


• Versatile retail/office/commercial • 7800 sq. ft. building, primarily concrete with glass store front • 1 block N. of Post Office & City Hall • 41 paved off-street parking spaces • Includes roughly 2451 sq. ft. garage area with roll-up door • Purchase price at $499,000

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

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


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

(360) 479-6900 • (800) 479-6903

Title Insurance Escrow Services Real Estate Resources

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

March 2012 Kitsap Peninsula Business Journal • 23

Gina Schulz, broker at Strategy Real Estate, Inc., has sold another commercial building on Auto Center Way in Bremerton. This most recent sale is located at 5000 Auto Center Way, also known as the Metcalf Grimm building. Schulz listed this building in May of 2010 and immediately had a slew of interest from local investors to small start-ups and even out of state businesses wanting to expand their footprint. The new owner of the Metcalf Grimm building is Canopy World, relocating from 6th Street in downtown Bremerton where it first opened in 1983.

Kathy Berndtson of Reid Real Estate • Floyd Luckerath REALTOR Spirit Award: Barbara Ann Stier of Penny’s Team • Affiliate of the Year: Ryan Christian of Wells Fargo Home Loans • Citizen of the Year: Tex Lewis, Central Kitsap Trails

Tim Ryan Construction, Inc. of Poulsbo has been awarded a contract from Gravitec Systems Inc. The project involves remodeling an existing 42,000 square foot building and adding an additional 8,600 square feet of administrative and engineering office space on a new second floor. The facility will combine Gravitec’s training facility and classrooms with its research & development, engineering, testing and sales department under one roof. A second floor observation deck will offer clients an opportunity to view students and staff while they conduct training and testing. Several training towers will be located in the equipment field. These will replicate real world height scenarios that assist the students meet their specific training needs. Tim Ryan Construction’s current projects include the Suquamish Museum, Skookum Contract Services laundry facility in Port Townsend, Harrison Medical Center Professional Office Building in Bremerton, Surgery Center Silverdale OR expansion for Medical Partners LLC., and Bremerton Bottling Company interior remodel. For more information, contact TRC at (360) 779-7667 or visit the website at

Rush Companies to grow home building division The Rush Companies is expanding Rush Residential, the 25-year-old company’s homebuilding division. The plan includes building homes for a range of buyers — from first-time homeowners to retirees — in Gig Harbor, where the company is headquartered. “This announcement really speaks to our commitment to meeting the current needs of buyers in the new home marketplace,” said President Matt Smith. “Over the past two decades, Rush Custom Homes built a legacy based on the ability to design and build luxury homes in Gig Harbor and neighboring markets. After months of studying local market activity and monitoring the economic recovery, we have made a strategic decision to expand the focus of Rush Residential to serve a wider range of communities, products and price points.” Rush Residential recently acquired 82 home sites in a Gig Harbor North community called Harbor Crossing and currently has homes under construction on a 46-lot community called Rainier Gem in Puyallup. These homes are priced between $200,000 and $300,000.  The company also has more than 300 lots in Gig Harbor that are ready for residential development. Rush Residential continues to build high-end homes in the Canterwood neighborhood, with 20 lots still available, with homes priced from $599,000 and up. Rush Residential is an operating division of The Rush Companies, which, as a whole, offers design, development, construction and property management services for both commercial and residential projects around Puget Sound.

Haselwood Family YMCA receives LEED Silver certification

24 Kitsap Peninsula Business Journal • March 2012

Haselwood Family YMCA announced that is has received a Leadership in Energy and Environmental Design or LEED, silver certification. Great efforts were taken during construction, and continued upon completion of the facility to ensure the lowest impact on the environment and best atmosphere for those using the space. LEED certification is an internationally recognized standard for green building efforts. It takes into account everything from location and design to water and energy efficiency. With the reduction of construction waste and using low-volatile organic compounds in adhesives, glues, and carpets, new construction projects like the Haselwood Y can ensure that those working in and around the space have superior work environments. The majority of materials used were post-consumer recycled and locally manufactured; keeping things close to home and in turn, reducing the Y’s carbon footprint.

Disney puts a fresh spin on an age-old Industry Disney and Associates, general contractors are the pioneers of this second phase development, Turtle Cove, located at Harris Road SE and Converse Ave SE. This 2.5-acre phase will add a residential development that includes nine lots ranging from 5,000 – 10,000 square feet. Home sizes will range from 1,800 – 2,200 square feet, featuring five two-stories and four ramblers. Located in Port Orchard, it is minutes from Fred Meyer, Highway 16 and the Bremerton Ship Yard, and has access from Harris Road. Craftsman quality features can be found inside and out, including landscaping, upgraded cabinetry, granite countertops and a continued list of other value-adding features. For c onvenience, it will be equipped with ADA access and is located on a quiet dead-end street along a small well-maintained subdivision with nice homes. The project has started clearing and a temporary road for site development is set for completion by mid-March. Owner Bob Disney thinks succeeding in this market is more about lasting integrity than numbers. “Everyone wants a general contractor that produces hi gh quality work,” says Disney, “but few expect to find one that also provides high quality service without a scary price tag. That’s where we come in.” Reach Disney at (253) 569-2536 or

Community-based solar campaign doubles amount of solar power on Bainbridge Through “Go Solar Bainbridge,” a community-based solar campaign spearheaded by Community Energy Solutions, there will soon be a 100 percent increase in the amount of solar-powered electricity generated on Bainbridge Island. According to Puget Sound Energy, Bainbridge Island had 43 grid-tied photovoltaic systems, totaling 195 kilowatts (kW), as at the end of December 2011. During the campaign, over one hundred thirty people attended the workshops, and thirty-two homeowners and two businesses took advantage of the group purchasing discounts and decided to go solar. All together, they will add 202 kW of solarpowered electricity capacity to Bainbridge Island. They are particularly proud that nearly all of the solar modules purchased were made in Washington State. That and the work provided by Sunergy Systems, the pre-selected professional solar installer for the Bainbridge campaign, the results were more than just adding “watts.” Among those who recently went solar was Bainbridge Gardens on Miller Road. Owner Chris Harui put in a 4.32 kW photovoltaic system to lower her reliance on electricity from the grid. She said. “I’ve wanted to use the natural energy from the sun, and this is a way to support our local solar industry, by participating in this community-based campaign.” Another element that makes Go Solar Bainbridge campaign unique is the Community Solar Project at the Bainbridge Island City Hall. Community Solar is a means for more people in Washington State to enjoy the benefits of owning a solar energy system that otherwise could not due to shading, property ownership, or other barriers. A number of people have already expressed interest in the project. Joe Deets, former executive director of Community Energy Solutions is focusing his efforts on the City Hall Project. For more information, contact Deets at

Windermere’s Poulsbo office seeks suggestions for Day of Service Annual Windermere Real Estate Community Service Day is set for Fri., June 15 Windermere Real Estate’s Poulsbo associates are seeking suggestions from the community for a service project in its area. Past projects include partnerships with local organizations to clean, repaint and improve facilities, and working with schools, food banks, parks and other neighbors. Send suggestions to Catherine Jones at or call (360) 779-5205 Submission deadline is Sat., March 31.

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Washington CASH to offer extended boot camp orientation Washington Community Alliance for Self-Help (CASH) is offering a free, threehour extended boot camp orientation for business development start-up classes on Tues., March 27, 1201 Park Avenue in Bremerton, from 6-9 p.m. This new extended orientation is intended to provide the basic background needed to succeed in developing their business, said Stuart Walton, director of the Washington CASH program in Kitsap County. The orientation is hands-on, including worksheets, class participation and presentations from successful Washington CASH program graduates, now owners of successful businesses, Walton said. The business development training classes will begin on Tues., April 3 and meet weekly for eight weeks at KCR, from 6-8:30 p.m. The training is free to low income households, and the only charge is $40 for the course workbook. Nearly 1,000 local entrepreneurs have enrolled in the CASH training classes. Topics for the eight-week business training include learning how to start a business, from licenses, taxes, insurances to

managing time. Class sessions also cover developing the business concept, sales and marketing, calculating the break-even point, learning cash flow techniques, developing pricing, preparing financial statements, designing sales and marketing plans. There is a strong focus on developing profit and loss statements and learning how to make a business profitable. Students in the training class will prepare an individual business feasibility plan. Following graduation, students may apply for on-going business support training and for peer loans. More than fifty entrepreneurs participate in the CASH business support program in Kitsap. “The business support group program is the heart of the Washington CASH model,”” Walton said. “Our peer support program keeps our start-up business owners engaged, involved and provides technical and moral support,” Walton continued. “It’s what makes this program so successful.” For program and pre-registration information, email; call (360) 698-4088 or (206) 914-4824.

Public meeting for Faith in Action’s HUB Center for Seniors Public comment is being sought on a USDA Rural Development loan application being made by Faith in Action West Sound. The proposal is for the HUB Center for Seniors Facility in the town of Belfair in the amount of $1 million. Under the guidelines of this loan, a public meeting must be held. Anyone interested in participating in this process is invited to Timberland Library in Belfair on March 6, at 6:30 p.m. At that time Faith in Action representatives will be sharing more about the planned project and allowing the public time to comment on the planned facility and it’s programs. The population to be served will not only include approximately 7,000 North Mason seniors, but will also offer services to more than double that number of their South Kitsap neighbors. The HUB Center for Seniors will include a large meeting space, commercial kitchen, small meeting rooms, offices for other senior service providers, and their thrift store. In the words of volunteer Denny Hamilton, it is a place designed to “…not just be a place where seniors go — but to be a place where seniors do.” To learn more about the Center or the meeting, contact Patti Kleist at: 360-275-0535. Also, Faith in Action’s Annual St. Patrick’s Dinner and Auction will be held Saturday, March 10 at 6 p.m. at the Victor Improvement Club. Enjoy a scrumptious corned beef and cabbage dinner and one of the best auctions of the year. George Kenney will be the auctioneer, and Dan Goodell the MC. Tickets are $18 and available at the Faith in Action Thrift Store, 40 NE Old Belfair Highway, or by calling Kleist 275-0535.

Moving Forward The Truth About Reverse Mortgages

Mike Hancock Loan Officer | MLO-108299 The Legacy Group Silverdale, WA


Legacy Group Lending, Inc. NMLS ID # 4455 Legacy Group Capital, LLC License # 520-CL-43276 Legacy Group Escrow, LLC License # 540-EA-40580

March 2012 Kitsap Peninsula Business Journal • 25

While there’s a lot of confusion about reverse mortgages, it’s actually fairly basic. It’s not giving up your home ownership, a government entitlement, or merely a decision for the financially desperate. Available to anyone 62 or older that has equity in their current home or a substantial down payment, a reverse mortgage is simply an equity loan with deferred payments secured by your home. If you are set on leaving the equity in your home as a legacy to your heirs, a reverse mortgage is probably not for you. However, if you want to be able to live in your house as long as you can without a mortgage payment or desire access to your equity while you are alive, a reverse mortgage might be a viable option. For example, a pair of my clients — a couple in their late 70s — were interested in exploring a reverse mortgage. They owned their home free and clear, and their children wanted them to enjoy a high-quality of life for the remainder of their years. Their home was worth approximately $300,000, and we did a loan for $150,000. There were no payments on the loan, and they were able to enjoy a youthful lifestyle with the money now available to them. I also showed them how to lower their real estate taxes so they saved more every year. In the past, reverse mortgages were only used as a refinance tool. However, the U.S. Department of Housing and Urban Development recently expanded the program to include purchases. The following is an example of how it works. You don’t want to have a mortgage payment, so you are planning to pay $150,000 cash for a downsized home. However, you quickly find that $150,000 doesn’t get you very far in the home market these days. Instead, you use your cash as a down payment, and we finance the balance of the purchase price on a home worth $300,000 using a reverse mortgage. There’s still no payment on the loan, and you’re able to live in a much nicer home. These numbers are just for illustration purposes. Purchase and refinance options depends on your equity and age. The older you are, the better the options. Whatever your financial situation, I’d love to connect and provide a trustworthy source for you to discuss any mortgage questions.


Ed Aro Real Estate

26 Kitsap Peninsula Business Journal • March 2012

By Rodika Tollefson Gig Harbor realtor Ed Aro has been in business for a long time and has built a wellestablished business. In 2010, he was ready to rebrand his business to both create a

more consistent and a more professional look. “Being in real estate, his brand speaks for him and if things aren’t professionally done, it will affect his sales,” said Kathleen Simpson, a Port Orchard CPA who is Ed Aro Realty’s business adviser. Simpson said Aro’s flyers, website and business cards had been done by different people and it was important to get a cohesive look for the recognition factor. The rebranding project, which lasted about six months, included logo, business cards, brochures, folders, stationery as well as print advertising and flyers, and the existing website was altered to incorporate the new template and look. Aro hired Port Orchard-based Ewing Creative for the project, and Simpson oversaw the effort. Since Aro Realty is affiliated with John L. Scott, one of the creative challenges was to maintain that connection while also creating an independent brand. “Recognizing that Ed Aro had already established name recognition, we did not want to make an abrupt change to the existing brand,” said Ewing Creative owner Kristy Ewing, who was the lead designer on the project. “Instead we chose to do a subtle but classy update.” Ewing said the rebranding process usually starts by laying out everything on the table and asking the clients how they feel about their current brand and what impression they think it gives to their customers. “The next question is, where do

you want to be, how do you want to be perceived,” she said. “Then we delve into key positioning in the market segment where he wants to be.” In Aro’s case, because he has been in business for a long time, it was a factor that set him apart, Ewing said. “He has the capability of handling multimilliondollar homes and prefers to be a listing agent primarily, and part of that is attracting developers that want someone with experience,” she said. To achieve that image, the changes included a more sophisticated logo, a new tagline and even a new photo for Aro — now, he Before is shown wearing a suit and tie in all the marketing materials. “We focused on the main ideas we wanted to get across, that he’s experienced, passionate and professional, and he gets results,” Ewing said. Those ideas impacted not only the logo but also the tagline and

other copywriting, all the way down to the home images used in the marketing materials. Ewing said it’s important for clients to know their target market when working on a brand. A creative brief will guide the agency in the branding process. It may also help for the business to look at large, national companies that cater to the same demographics to see how they present themselves with their color use and messages. “That’s a nice way of comparing it — do we have a Nordstrom look for a Walmart audience, or do we have a Walmart look for a Nordstrom audience,” she said. One thing to keep in mind is that the design has to work in all the mediums the business uses to communicate, Simpson said. For Aro Realty, that entailed finding pleasing designs that worked equally for stationery, print ads and signs. She also suggests staying with a classic logo that will work for many years. “We looked at which designs we liked


and felt were most pleasing to the eye. When you know this is the one is when you start rolling it out and you receive good comments,” she said. “We knew we hit the mark when Ed went into Borders in Gig Harbor to buy a book and someone said, ‘I know who you are, you’re Ed Aro,’ like he was someone famous.” Whether it’s branding or other marketing effort, Simpson has one other piece of advice to businesses: “If there’s anywhere you need to spend money in a down economy, that’s marketing,” she said. “I always recommend that it’s the last thing to cut, even if you just make it a smaller budget.”

Branding your business or organization when you have no money By Bill Hoke Four times each year, 30 aspiring entrepreneurs in the Washington Community Alliance for Self Help (CASH) program set out to learn the basics so they can fulfill their dreams to start their own businesses. They come from every corner of Kitsap County for the eight-weeks of intense business training. Many come from WorkSource to take advantage of the Self Employment Assistance Program (SEAP) that lets them continue to collect unemployment benefits and not have to look for work while they develop their business. Other applicants to the training and support programs say they are tired of being laid off — some multiple times — and want to take charge of their lives. And more and more often they say that having reached a "certain age" they are simply unable to find work.

They are more willing to put in the 10,000 hours of hard work to start a successful business of their own than they are to return to the uncertainties of part time and seasonal employment. Within a few minutes in the first of their Business Development Training classes, they find themselves in a breakout group working on a business 'case study'. Reality sets in. There is much to learn. As the weeks go by, these entrepreneurs — with 'fire in their belly and ice in their veins — realize that their proposed startup, whether it's a landscape, window washing, professional services, home handyman business needs a brand name. Ask any of these intrepid business owners-to-be (can you imagine starting your business in these challenging times?) for their marketing and advertising budgets to promote their new business enterprises and they will stare at you. With inventory to buy, insurance, communication and office supplies, a website, maybe even rent for a small storefront, the last thing any of these CEO's have is money for marketing and 'branding'. Twenty years ago, the choices available

to brand a business were simple: buy radio, television, newspaper, consumer and trade magazine advertising. You might build your brand name with directory advertising, transit posters, building signs, outdoor billboards, or use direct mail at pennies per hit. Traditional advertising media are caught squarely in the business-altering paradigm change that affects every corner of our lives. Today, the choices are confusing and confounding and there are those who shake their heads if you are not using social media or tracking metrics on a website, not offering a QR code and catering to the millions of apps for mobile devices. It's hard to imagine what the next ten years will bring in the way of technology, retailing — small business ownership, and creating a brand name. What is clear — from old paradigm to new — is that the businesses that succeed are the ones with top of mind awareness (TOMA). This old term is still relevant because the triggers the consumers have are Branding, page 27

Own your online brand to better control your reputation solely on their offline reputation and word of mouth. The other mistake is forgetting that social media is only one of the tools in the digital toolkit and it’s not as successful on its own. And while social media may not even be beneficial for all companies, it is still important to understand how it affects the online brand. In a recent study called “The Company Behind the Brand: The Reputation We Trust,” leading public relations firm Weber Shandwick found that of the 1,375 consumers polled, 69 percent discussed with others how they feel about a product they purchased, and 55 percent discussed the company’s customer service. The same study found that 88 percent of people were influenced by what people say about the company (both online and offline), 83 percent were influenced by online reviews,


brand that is built on anything other than a better idea and world-class customer service. Can you name one? Discounting will bring people in, but it does not bring them back. Ultimately, a brand name is surrounded, suffused, in ineffable little things, like a greeter at the door, making things right without drama, making sure every single transaction is conducted better than anyone, every single time. So when we ask a start-up in the Washington CASH program what they will do to build their brand name and they often reply (at first), 'offer world class customer service', we remind them that Nordstrom's first promise was not that they would provide great customer service, but that they would offer the largest selection of shoes in Seattle. Brand building is based on performance, not promises, slogans, catchy jingles or sexy images. You don't need big bucks to build a brand name. You need a better mousetrap and the willingness to go to any extreme to build the customer loyalty that breeds success. There are 30 new business owners in the CASH program who are learning that lesson. (Editor’s note” Bill Hoke is a Kitsap-based sales and marketing consultant. He has worked with nearly 1,000 new business startups in the Washington CASH program in Kitsap and is a speaker and team leader for business and nonprofit workshops He can be reached at

from page 26 still the same: every successful business must have faithful customers who think of your business first when they hear the product name. With only minimum advertising and promotion, Starbucks has made itself synonymous with not just coffee, but a good, consistent coffee experience. Same for Nordstrom, Nike, and Apple. They have found the 'magic formula' for creating a brand name that is not dependent on outadvertising, out promoting, or having more sales than their competitors. And we should remember that it was barely 20 years ago that Starbucks was a single store in the Public Market in Seattle. The founders realized that lacking the big budgets like Maxwell House and Folgers — household words and famous brand names — that they would succeed not by outadvertising or giving up all but a fraction of their margins, but by creating a new category and out-performing all others. Starbucks took coffee off the kitchen table and brought it into tens of thousands of neighborhoods where people can connect, socialize and share 'experiences'; they reinvented coffee. And every Starbucks store I have ever been in, Auckland, London, Milan, Paris, Tampa and Bremerton delivered on the promise of good coffee in a clean, well-lighted, up-scale and friendly place. We remind the business owners to be in the CASH program, name one successful

Hunter joins Mark-itz Mark-itz, a promotional products and marketing business is growing in Kitsap County. Owner, Jennifer Zuver has hired Veronica Hunter to help expand the business. "It is very exciting for our business to be growing in this economy. Businesses are realizing that marketing is important in any economic environment," said Zuver. Reach Mark-itz at (360) 204-4888.

and only 56 percent were influenced by advertising. SEO marketing company polled more than 1,100 U.S consumers (as well as nearly 900 from U.K.) and found that 70 percent have used the Internet to locate a local business and 67 percent searched for online reviews of local businesses. Interestingly enough, the majority — 69 percent — also were as likely to trust online reviews as personal recommendations. Obviously a lotmore goes into decision making than numbers and statistics (which, as researchers know, can be a fickle thing in the first place), but a couple of questions to consider include: What happens when customers can’t find your business online? And how can you build a good reputation when you are MIA online and don’t know what people think about you in the first place? To answer the first question, you only need to look as far as the marketing giant Coca-Cola. As the story goes, when one of its fans couldn’t find the company on Facebook, he enlisted the help of a friend and created a page himself. Coca-Cola, to its credit, ran with the idea — its nowofficial page is still largely customerdriven, with a few corporate posts sprinkled among the (feel-good) customer raves. Sounds like a great story, except that for every one of these successful fan overtakes, there are numerous disaster stories about what happened when a company lost control of its messages — and brand — through social media or other online means. Just ask McDonalds, whose recent #McDStories hashtag on Twitter started out innocently enough: to promote its fresh produce. By the time the Twitter mob was done with it, the #McDStories stream turned into a long list of 140-character horror stories about the

fast food giant. True, you can’t control those kinds of runaway trains any more than you can control reviews by customers on sites such as Yelp or Google Places. And in the digital world, you have to relinquish a certain amount of control over your “message” to your market to be authentic (the buzz word du jour in social media) — which means a lot more dialogue that you can’t completely control. But if you have no online presence other than maybe a static website or a completely user-generated Yelp page, you’re giving your customers, virtually speaking, a piece of paper and crayons and letting them run loose with your poster. Without any help, how close will the image they create come to your brand? The other aspect that weighs into the online brand building process is search engine rankings — back to the idea that the majority of consumers will look at a business online first. Social media presence, blogs, new website content, presence on heavyweight sites like Google Places and so on all add up to how easy your business is to find online — and consequently how successfully it will bring in customers (and dollars) in. This doesn’t even get into the topic of other bad news like squatted domains or user names, fake profiles, complaint sites and so on. The more seriously you take your online brand, however, the easier those problems are to address. Just remember, the beauty and the curse of the online environment is its constant flux — which means your job is never done. The days when you could create a bunch of beautiful brochures and rest easy are long, long gone. (Editor’s Note: Rodika Tollefson is a University of Washington graduate student in the MCDM — Master of Communication in Digital Media — program.)

Want to get your business going? Begin with our FREE 10-Point Do-It-Yourself Marketing Check-Up. Take this free sales and marketing check-up to see where you stand. If you need assistance, we can design a program to fit your budget to get your business going and growing. Email today for your free 10-Point Check List.

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By Rodika Tollefson In today’s fast-changing multimedia world, it goes without saying that the rules of the marketing game have changed. Consumers are not so much interested in being talked to through television or print ads as they are interested in interacting with businesses they patronize — and with each other. Traditional advertising still has its place and word of mouth is king, but where some businesses are missing the boat is in realizing if they don’t have a solid presence online, their customers will create a brand for them, whether those businesses like it or not. And it may not always be a positive one, or one that aligns with their vision. It’s especially easy for local businesses to ignore their online presence and rely

Famous branding mistakes — and what you can learn from them the user names on social networking sites. And if you’re an existing business that hasn’t fully ventured into the digital ecosphere, claim your usernames and domain names even if you don’t know when you’ll be ready to use them. Then, the Jason Castillos of the world can go on tweeting about their workout and tacomaking activities in peace. Among the changes the Internet has brought is the way consumers think of acronyms. The Tourism Federation of Wisconsin (TFW) learned that the hard way. The 30-year-old lobbying coalition decided to rename itself a couple of years ago. Its previous name, Wisconsin Tourism Federation (WTF), had been giving it too much grief. The name change made international news. Drake University made an equally smart move when it ditched a recruitment campaign that used “D+” as its slogan. The university realized (a little too late) that when you’re an educational institution, D-plus does not exactly resonate with the image of excellence. But not all name changes are a good thing. pulled back on the idea of becoming last year after realizing the switch was confusing its customers. SyFy Channel, on the other hand, pressed on. A few years ago, the executives at SciFi decided to throw money into reb randing and their consultants came up with a name that was supposed to attract the younger crowd. The name got their attention, alright: syfy turned out to be a nickname for syphilis. Apparently, that hasn’t deterred the company — the name lives on. The lesson is, you don’t need to hire an

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By Rodika Tollefson As a small business, you can’t afford to make big mistakes when it comes to your brand. Fortunately, there are plenty of lessons to learn from corporations with multimillion-dollar marketing allowances. Giants like Coca Cola, Apple and Colgate have proved that despite generous budgets — and the implied savvy that comes with them — nobody’s immune to flops. Take names, for example. Netflix gets the flag for one of last year’s major marketing blunders. The online-based movie-rental and streaming pioneer decided to split its business into two, separating its streaming service and calling it Qwikster. Never mind the name and all the questions it conjured, or the wisdom of the idea of splitting the brand when fans were already riled over steep price increases. The problem came when Qwikster tried to build its Twitter base — only to find out that the username Qwikster belonged to an average, grammatically challenged guy called Jason Castillo whose avatar was a dope-smoking Elmo and whose tweets revolved around his daily routines. Needless to say, Castillo realized he had a fresh pot of a six-figure income when Netflix backpedaled to get owne rship of the Qwikster Twitter handle. But within a few weeks, Netflix left Qwikster for dead and free to join the ranks of New Coke, Colgate Kitchen Entrees and Bic disposable underwear in the Hall of Fame of Branding Mistakes. One of the (many) morals of that story: When you’re choosing a business name, in addition to checking for trademarks, domain names etc., make sure you check

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expensive marketing agency to decide whether a name change makes sense or not, or to know that “what’s in a name” is you r reputation, so choose it well. Successful companies understand that to survive and thrive, diversification is key. Normally, expanding the product line makes perfect sense — but consumers don’t always agree. When BENGAY, the maker of pain-relief gel, created an aspirin, people got a headache from the idea of ingesting a pain killer that conjures the image of a messy, smelly goo. Jimmy Dean customers were just as excited to try its chocolate chip pancake sausage on a stick when the sausage maker tried to woo chocolate and sausage lovers with one convenient product. And even the beloved Jell-O brand had its fans seeing green — when it offered up celery-flavored Jell-O. Not even the iconic Google is immune from these kinds of expensive mistakes. The company tried to capitalize on the streaming market with Google TV software for Sony and Logitech set-top boxes. The software allowed users to search for TV shows on the Web, network TV and cable simultaneously but was finicky, and the networks also blocked it from accessing their websites. Word has it, returns of the Logitech Google TVequipped boxes have outpaced sales. A good lesson from those companies’ multimillion-dollar mistakes: Brand extensions should be ca refully considered and with a deep understanding of the core brand and its appeal. Fans will not flock to a new product just because they think your brand is the best thing since sliced bread, not to mention one too many disappointments, and they’ll be flocking to a competitor instead. Part of creating a solid brand is marketing and companies are constantly exploring out-of-the box ideas. Some daring moves h ave worked well — consider the Oscar Meyer Wienermobile, more than 75 years old, or the recent Old Spice “The Man Your Man Can Smell Like” viral phenomenon. But Burger King is proof that bold is

not always smart. After more than a year of declining sales, the fast food chain declared last summer that the king was dead — its mascot king — that is. The creepy, plastic-mask-wearing king was dethroned and the advertising agency that brought him to life was fired. The timing was interesting: The nix was announced as part of a campaign to switch to a healthier menu. In other words, “The (plastic) king is dead. Long live (Burger) King.” Timing, in fact, could often make or break an idea. Australia’s Qantas Airways became the poster child of unfortunate timing last year when its Twitter campaign landed in hot water. The airliner asked its followers to tweet about their “dream luxury in-flight experience” in a contest. But the company didn’t consider that being in the middle of strikes that have cancelled many flights was not the best time to engage its customers. The #QantastLuxury response turned into a rant from unhappy customers. The execs simply shrugged their shoulders, saying something to the effect that the numbe r of entries was so overwhelming, it would take years to judge. Acknowledging their mistake was apparently a luxury they couldn’t afford. PepsiCo. was a lot more responsive to consumers when one of its ideas backfired. The company launched an iPhone app called “Amp up before you score” in 2009 for its AMP energy drink. The app helped men “score” one-night stands with women by breaking them into two dozen ca tegories and supplying pickup lines for best success with each category. PepsiCo, in turn, scored popularity among its male fans, but not so much with countless others, who caused a huge outcry and threatened to boycott. When PepsiCo tweeted about the move to kill the app and explained that the intent was to “show the humorous lengths” men go to pick up women, it included the hashtag #pepsifail that the Twit terverse used to discuss the controversy. Not a bad lesson in humility — acknowledging a flop then moving on.

Chase small business lending up 52 percent in 2011 Chase, America’s top volume SBA lender, increased small business lending by 52 percent in 2011 from a year ago, providing $17 billion of credit through nearly 400,000 new loans and lines to American small businesses. In 2010, Chase provided $11.2 billion in credit to businesses with less than $20 million in annual sales. “Since 2009, we have provided more than $35 billion in working capital, term loans for expansion, commercial mortgages, lines of credit and business credit cards to small businesses,” said Scott Geller, CEO of Business Banking at Chase. For the past three years, Chase exceeded annual small business lending commitments and, at a White House-sponsored event last fall, pledged to maintain elevated lending volumes through at least 2013. Lending to small businesses in each of the 23 states with a Chase branch presence increased over 2010. In Washington, the number was up 41 percent. The bank was also the No. 1 SBA lender in fiscal year 2011 in number of loans in several markets around the country, including Seattle.

March 2012 Kitsap Peninsula Business Journal • 29

JFS Moving opens in Poulsbo A moving/delivery business has expanded its operations to Poulsbo. JFS Moving has been in business for the past three years assisting customers in the Seattle area. “We look forward to helping Kitsap County, said owner Jonathon Sheridan. “We specialize in moving household goods and small deliveries. Our company focuses on taking care of you and your belongings to the very end.” JFS Moving has had customers from the Gig Harbor Chamber to the ABC Reality Show “The Newly Weds” and A&E’s “The Deadliest Catch.” The entire undergoes a thorough a two-week training process, with a focus is on being honest, reliable and hardworking. The company was rated number two on King 5 News for Best Movers out of 70 movers in 2011. Contact JFS Moving at (888) 546-6820 or, for a free estimate, mention this story and receive $25 off your move.

Audubon Society accepting scholarship applications

30 Kitsap Peninsula Business Journal • March 2012

The Kitsap Audubon Society is accepting applications for three scholarships that will be awarded to graduating seniors from public high schools in Kitsap County who plan to pursue academic degrees in environmental studies or related sciences. Kitsap Audubon awards at least two annual scholarships of $500 each. This year a third scholarship of $1,000 will be awarded as a special memorial to Glenn Anderson, who was a teacher and a member of Kitsap Audubon. The criteria used to select recipients include academic performance, related environmental activities, and how well the intended degree fits Kitsap Audubon’s mission of protecting and preserving wildlife and habitat. The awards will be presented at the group’s May 10 meeting, which takes place at the Poulsbo Library, lower level, at 7 p.m. on the second Thursday of each month, from September to May. For information, contact Sandra Bullock, scholarship chair, at (360) 3945635 or at

L&I’s medical provider network now accepting applications for 2013

ALLIANCE 2012: Small Business Conference set for March 15 in Puyallup

The Department of Labor & Industries (L&I) is now accepting applications for the statewide workers’ compensation medical network that will launch in 2013. Network providers will care for injured workers covered by L&I as well as by self-insured employers. Beginning January 2013, certain medical care providers that practice in Washington State must be in the network to treat injured workers beyond the initial office or emergency-room visit. These include physicians, chiropractors, naturopathic physicians, podiatric doctors, advanced registered nurse practitioners, physician assistants, dentists, and optometrists. “We want every great health-care provider in the state to be part of our network,” said Beth Dupre, assistant director for Insurance Services. “Your patients are counting on your participation. I urge you to apply early, so we can have credentialing completed before the network launches.” The standards for joining the network are described in new administrative rules, effective Feb. 3. Providers can apply at Throughout the year L&I will be reaching out to current L&I providers to invite them to apply. New providers (of the types listed above) may apply to the network at any time. Current providers for L&I must reapply, including providers that participate in the Centers for Occupational Health and Education (COHE). Other provider types and out-of-state providers can continue treating injured workers until they are invited to join the network at a later date. After the network launches, injured workers will be able to see a non-network provider, but only for the initial visit. They must then choose a network provider for ongoing care. L&I will help workers locate a network provider.

On March 15, several hundred small business representatives will gather at the Puyallup Fairgrounds for the Alliance Northwest Opportunities for Small Business Conference. This conference is designed for businesses to network and learn about procurement opportunities through agencies and prime contractors. The keynote speaker for the event will be Andre J. Gudger, Office of Small Business Programs Office of the Under Secretary of Defense Acquisition, Technology and Logistics. Gudger serves as the principal advisor to the Secretary of Defense on small business matters. Kicking off the event will be Kate Oliver from GSA Integrated Acquisition Environment (IAE) who will present an overview of the consolidation of eight federal procurement systems/websites and the Catalog of Federal Domestic Assistance into one new system – the System for Award Management (SAM) to be released in May. This year’s agency partners include US Navy — Combined NSWC Port Hueneme Division & Corona Division; US General Services Administration; US Army Corps of Engineers; Department of Navy; Department of Army; US Air Force; Pacific Northwest National Laboratory; Small Business Administration; and others. Notable attendees include Boeing, Pacific Northwest Defense Coalition, Center for Advanced Manufacturing Puget Sound, Impact Washington, WSDOT, PCL Construction Leaders, Kiewit, URS, Advanced Technology Construction, Stantec, Lacy & Par and Manson Construction. Last year, the conference included over 96 booths filled with local, state, and federal agencies as well as small businesses and fortune 500 corporations. The 2011 conference attracted over 750 attendees from over 400 businesses and the Alliance team anticipates a larger turn out this year. Alliance NW Conference Opportunities for Small Business Conference & Trade Show is led by the Washington State Procurement Technical Assistance Center with the support of federal agencies and state offices. This is a partnership to provide businesses with a single day of networking and procurement training opportunities. More information is available at

AAA sets “Soap for Hope” toiletry collection record Thanks to the overwhelming support of AAA Washington members and the local community, AAA’s Soap for Hope donation drive recently collected and distributed a record 105,079 bars of soap and other toiletry items to charitable organizations — an incredible 68 percent increase compared to last year’s collection of 62,712 items. The Bremerton AAA office alone collected more than 2,500 toiletry items, all of which were donated locally to Alive Shelter for Battered Women. “The success of Soap for Hope is due in large part to the efforts of our members and community partners, which have done an amazing job supporting this event,” said Victoria Ramirez, manager of AAA’s office in Bremerton.

KPVCB, Kitsap PFD and County join to form Facilities and Venue Coalition The Kitsap Peninsula Visitor & Convention Bureau (KPVCB) announced that it, the Kitsap Public Facilities District (Kitsap PFD) and Kitsap County have formed the Kitsap Peninsula Facilities & Event Coalition. The purpose of the Coalition is to identify existing and potential conference, event, meeting, sport, tournament, and recreation facilities and venues that can be aggressively marketed to achieve maximize public and private economic benefit today and in the future, according to Patricia Graf-Hoke, executive director of the KVPCB. “The marketing and branding campaign initiated in 2009 to promote the Kitsap Peninsula region is generating increased interest from professional planners and we need to have current information about everything that is currently available so we don’t lose the chance to bid on or host major events,” said Graf-Hoke. While the private sector owns the majority of lodging venues, Kitsap County, local cities and school districts have most conference, exhibition, and tournament facilities on the Kitsap Peninsula. According to Commissioner Charlotte Garrido, Kitsap County manages some of the busiest and largest venues in the region. This includes the Kitsap County Fairgrounds & Event Center, community centers, and numerous parks and facilities, such as ball fields and golf and popular disc golf courses. “The County and Kitsap Public Facilities District have invested taxpayer revenues to build, update and maintain our local facilities and we want to see them used to their maximum potential,” said Garrido. “This not only helps keep quality facilities here, but when our venues host events they bring visitors who generate sales for local businesses — and that creates jobs and a more stable economy.” The City of Bremerton currently owns the Kitsap Conference Center, including the Harborside Room and Fountain Park; Admiral Theatre, Pendergast Park with multiple ball fields. Lions Park, is home to Bremerton High School Auditorium and Stadium, home-turf for the Kitsap PUMAs, Bremerton Ice Arena, and Gold Mountain Golf Course, host of several national and regional tournaments. The Kitsap Public Facilities District is currently working with the City of Poulsbo on the North Kitsap Regional Event Center, Stawberry Fields and provided the seed money to build the Kitsap Conference Centers and revitalize the Kitsap County Fairgrounds. “The Kitsap PFD has invested approximately $12 million in tax dollars in local venues resulting in $82 million contribution to the local economy. “The partnership with Kitsap County and the Kitsap Peninsula VCB will make it easier to create strategies to ensure taxpayer funded facilities achieve their economic potential,” said Mike Walton, executive director of the Kitsap PFD. Walton has been named chair of the new coalition and is in the process of developing a list of initial participants. The first meeting is planned for early March. The coalition will include representatives from the government and private sectors that own or manage facilities and venues that are, or can be, used to attract events and groups from out of the area to the Kitsap Peninsula region, especially for overnight or multi-day events. The goal is to share current and past data regarding facilities, capacity, availability, assets, current/projected needs, and financial considerations. Members will also work together to identify sales, marketing, promotional and co-op media opportunities to increase cost efficiencies and return on investment spent on events and facilities. Previously developed databases will be updated and expanded to create a master directory and inventory of local facilities and venues. The list will be available online for use by planners and event organizers. The coalition plans to explore conducting a regional competitive market study to determine current and future demand for types of facilities and amenities most likely to attract large events to the Kitsap Peninsula. Anyone interested in participating in the Coalition is welcome to send an email to or to Walton at The Kitsap Peninsula Visitor & Convention Bureau may be reached at (800) 337-0580 and

The Bainbridge Island Historic Preservation Commission is now accepting nominations for the second annual Blakely Awards. The awards were established in late 2010 to recognize individuals and organizations that have made a significant contribution towards historic preservation in our community. Island residents are encouraged to nominate those who they think have made a real difference in preserving our community’s historic structures and sites. Nominations can be made in two categories: Preservation Leader – awarded to an individual or organization that has demonstrated community leadership in promoting local historic preservation. Steve Romein and Ty Cramer received the award in 2011,for setting an example through their work in preserving Lynwood Center and their Old Mill Road farm and farmhouse restoration. Project of Excellence – awarded to a restoration/preservation project of significance and value to the community. Last year, this award was presented to the Bainbridge Island Metropolitan Parks and Recreation District for its efforts in the restoration of Yeomalt Cabin. Nominees must be Island residents or Island property owners. Nominated organizations must conduct some or all of their activities on Bainbridge Island. Self-nominations will be accepted. Nomination forms and guidelines can be found on the City’s website, and are also available at City Hall and the Bainbridge Island Historic Museum. Nominations must be received by the Department of Planning and Community Development by Friday, March 23. The Commission plans to make the awards in May. Questions and nominations can be directed to Heather Beckmann or (206) 780-3754.

March 2012 Kitsap Peninsula Business Journal • 31

Historic Preservation Commission issues call for nominations for Blakely Awards

Nissan LEAF — The EV goes mainstream By Lary Coppola I was more than skeptical about Electric Vehicles (EVs) — until I actually drove one. I came away a believer that EVs are the future — not everyone’s — but for a lot of folks. While the automotive industry has seriously experimented with alternative fuels or the past decade, they’ve settled on electricity as the alternative power source. To clarify the difference between a hybrid and an EV, hybrids, such as the Toyota Prius, run on a combination of gasoline and battery power, while a pure EV is 100 percent battery-powered. Nissan is committed to EVs — so much so, it now offers an EV cargo van, the NV2500. Nissan has put its money where its mouth is, gambling almost a billion dollars that the LEAF will change our driving habits. And make no mistake, EVs are not just coming — they’re already here and available right now. The highperformance, Tesla sports car and ultraluxurious Fisker sedan; Ford’s EV version of its Focus; the long-anticipated Chevy Volt; Mitsubishi MiEV; and a plug in version of the Toyota Prius are all available today. More are coming. Research shows that 90 percent of the U.S. population drives less than 100 miles per day, and 72.4 percent less than 50.

Meanwhile, 26.5 percent drive only 5 to 10. On weekends, 66.3 percent drive less than 50 miles and 23.5 percent between 20 and 29. The LEAF has a range of 100 miles on a charge, so, for the typical driver, it will get you there and back. As the first automaker to actually bring an EV to market, Nissan knew it had to get this right coming out of the starting blocks, because if they stumbled, the viability of EVs would always be questioned. Is the LEAF the perfect EV? No more so

NISSAN LEAF 32 Kitsap Peninsula Business Journal • March 2012





than any new vehicle is ever perfect. It will evolve the same way any new model does. But after driving the LEAF, I’m convinced Nissan has this figured out. It makes the first EV I drove look like someone’s science project in comparison. As the first fully electric, zero emissions mass marketed vehicle, the Nissan LEAF is an interesting glimpse into the look, feel, and utility of the type of cars many people will be buying before this decade is out. Walkaround: The LEAF’s styling is somewhat similar to Nissan’s popular Versa 5-door hatchback. Far from simply an electrically-powered clone, it boasts a sixinch longer wheelbase, and is much more upscale inside. The LEAF intentionally has a very mainstream look — one that doesn’t scream Geekmobile, as the original Honda Insight and Toyota Prius (although we’ve gotten used to them by now) did. The smooth body starts from the low, compact hood, flowing up through the shoulder line, and back to the large rear spoiler. The upright V-shaped design features long, up-slanting LED headlights that split and redirect airflow away from the mirrors, reducing wind noise and drag, while consuming about 50 percent less electricity than conventional halogen headlamps. The slim, aerodynamic LED taillight design and crisp corners combine with the rear bumper and diffuser for smooth airflow around the rear end without compromising interior roominess. The underbody is completely flat, for smooth airflow under the vehicle, and an innovative vortex-shedding roof-mounted antenna also reduces wind noise. Interior: The LEAF is fairly upscale inside, and includes Navigation, Bluetooth, and Siruis/XM satellite radio all standard. The seats are firm, comfortable and covered with an alcantara-like material made from recycled soda bottles. In fact, 40 percent of materials used to build the car are recycled, and the car itself is 94 percent recycleable. The front seat width is more than adequate with a surprising level of comfort for a vehicle this size. The center stack primarily houses the touch screen display,

from which climate and audio are controlled, as well as viewing the back-up camera. The display also provides access to the Carwings telematics system, which is connected to a global data center, (a subscription is required after the first 36 months). An on-board remote-controlled timer can be programmed to recharge the batteries when power rates are the lowest. The system also allows you to use certain mobile phones (iPhone, Droid, and Blackberry) to set charging functions remotely, as well as turn on the A/C — even with the vehicle powered down — and your phone will text you if charging is interrupted. The system also has a “reachable area” display that also shows nearby charging station locations. Instrumentation includes an LCD analog sweep graph that moves up or down depending on your power use. There’s a display that “grows” digital “trees” for low energy usage. There are more LCD analog gauges to show electric motor discharge and regeneration, and climate control drain, as well as an indicator for how many miles you have left on the current electrical charge, which changes depending on how you drive, and what electrical devices are running. While billed as a five-passenger car, the battery pack is located under the front seat and rear floorboard, allowing adequate, although not class-leading, rear seat head and legroom for a six foot tall person. Under The Hood: The LEAF is powered by a 80 kilowatt, high-response synchronous AC motor, rated at 107 horsepower and a healthy 208 Lb. Ft. of torque. Estimated top speed is 90 mph, with energy efficiency measured in miles per kilowatt. The motor is connected directly to the front wheels via a transmission with only two functions — forward and reverse. Electric motors don’t need gearing to perform at their peak, just enough power from the battery. So the real story is the batteries. Power comes from 48 laminated 24kilowatt hour lithium-ion batteries, coupled to a 3.3-kilowatt charger. Like hybrids, the LEAF has regenerative braking, which recharges the batteries when the vehicle is coasting. The batteries are about the size of a license plate, and stacked together in a package. Each cell is individually replaceable, so if one goes bad, you don’t have to buy an entire new battery pack. The batteries, which have an 8-year, 100,000 mile warranty, had no damage in 40-mph crash tests, or after being totally submersed in water. They are also 100 percent recyclable and will be remanufactured for power generation use. One very important thing to consider is that there’s no oil changes or incremental mileage servicing. The 50,000-mile service on my wife’s Volvo XC90 bumped on $900. According to my calculator, for the LEAF, that would be… zero. Nissan LEAF page 35

2012 Toyota Camry SE: Stylish, sporty and sensible By Bruce Caldwell The Toyota Camry is the benchmark for how to build a top-notch midsize sedan. The Camry has been a perennial best seller based on first class engineering, quality construction, reliability, comfort, safety, and excellent resale value. The Camry has long been the midsize sedan other manufacturers seek to beat. Since its introduction in 1983, the Camry has sold more than 15 million units worldwide. 2012 marks the introduction of the seventh-generation Camry. In keeping with the car’s traditionally conservative format, the new Camry is as much evolutionary as revolutionary. That approach makes perfect sense when you’re dealing with an already excellent product. The 2012 Camry is a fine-tuned extension of its predecessors. Walkaround: The new 2012 Camry is a very handsome car done in a contemporary, but not radical design that should insure that it looks fresh for many years. That line of logic won’t win styling awards, but it does enhance resale values. Our sporty SE model had stylish 17-inch 5-spoke alloy wheels with P215/55R17 tires. Handsome, crisp and well balanced are terms we would use to describe the Camry’s styling. The SE trim does a lot to distinguish the Camry from more mundane midsize sedans. Interior: We rank driver/passenger comfort at the top of our list of favorite Camry attributes. The driver’s seat and driving position were outstanding for any car, much less one with a base price of $23,000. Comfortable, supportive seats (with thicker side bolsters) are part of the SE package and our tester had the optional 8-way power adjustable driver’s seat. That adjustability combined with stretch-out legroom for even quite tall drivers and a tilt/telescopic steering wheel made finding an ideal driving position easy. There’s ample room for drivers well over six feet tall.

Fifth model line slated for 2013 production Stuttgart’s new sports car in the SUV segment has been given the name Macan. The name is derived from the Indonesian word for tiger and combines suppleness, power, fascination and dynamics – core characteristics of the new off-road Porsche.

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much more luxurious than people normally expect at the Camry’s price point. Under The Hood: Toyotas are known for their excellent drivetrains and the 2012 Camry is no exception. The DOHC 3.5-liter V6 that’s available in SE and XLE models delivers 268 horsepower and 248 lb-ft of torque. The 6-speed transmission was very smooth and nicely programmed for optimum performance and economy. There are paddle shifters, but we rarely used them because the car’s overall demeanor didn’t inspire us to bang through the gears. Acceleration was brisk and we never felt any lack of power. The EPA rates the Camry SE at 25-mpg city and 35-mpg highway. We averaged just




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Given the spaciousness of the front seats we thought rear seating might be compromised, but it also was roomy enough for six-foot-plus occupants with the front seats all the way back. There’s ample head, knee, and foot room in the outboard positions and even the middle spot will accommodate tall people. The floor is almost flat, but the center position padding isn’t conducive to long trips. Door bins, cup holders, seatback pouches, console bins, a sunglasses holder and a locking glovebox add up to above average interior storage capacity. The center console cup holders have spring-loaded tension devices to secure various sized containers. The excellent, thick, contoured leather steering wheel has easy to use auxiliary control buttons. Paddle shifters are located behind the steering wheel. The auxiliary controls are great for keeping your eyes on the road while operating the first class sound system and various communications devices. The optional Display/Audio/Navigation/Entune (Toyota’s innovative new multimedia system that uses smartphones) system provided more advanced connectivity features than we had devices to connect. There were also lots of ports for whatever electronic gizmos people fill their cars with these days. Cargo capacity is excellent thanks to a large trunk with a flat floor and split folding rear seats. The pass-through opening is large and the seatbacks have protective ribbed plastic. Unfortunately, the seats don’t fold very flat. Toyota puts a lot of effort into creating a quiet passenger environment and it shows in the new Camry. They suppressed noise transmission and put extra insulation where it’s most useful. The interior ambiance is

short of 30-mpg in mixed driving, which we felt was excellent given the responsiveness of the V6 engine. Behind The Wheel: The Camry SE is positioned as the sporty model in-between the base LE and the upscale XLE (and hybrid XLE) versions. We wouldn’t classify the SE as the same kind of sporty as more aggressive sedans specifically designed for high performance, but within the generally conservative parameters of affordable midsize sedans the Camry SE is a very enjoyable (bordering on fun) car to drive. It has enough “sport” so as not to totally bore more demanding drivers, but not so much harshness/responsiveness as to annoy drivers who value comfort over suspension connectivity. Like almost everything about the Camry the SE ride characteristics are a pleasant compromise. A key summation of the 2012 Camry SE driving experience is that it’s car that a very broad spectrum of drivers would enjoy on a daily basis. You can’t ask for much more than that. Whines: The steep angle of the folded rear seats greatly impairs the usability of what would otherwise be a bonus cargo area. Bottom Line: We think Toyota has another winner on their hands with the new 2012 Camry SE. It’s an outstanding value with quality, performance, safety, economy, style and comfort that exceed its affordable price.


34 Kitsap Peninsula Business Journal • March 2012

from page 32 Behind The Wheel: The actual range of the LEAF depends on driving conditions — temperature, terrain, traffic, etc. — and your personal driving style, load, and equipment usage. I’ve driven the LEAF both here locally, and through the beautiful rolling hills of the Tennessee countryside. Both times were an absolute pleasure. It has all the upscale power amenities you would expect — A/C, cruise, Bluetooth, push button start, trip computer, windows, door locks, mirrors, etc., which are powered by an optional, roof-mounted solar panel. Acceleration is better than most other similar-sized cars. Handling is superb as well, thanks to the battery placement under the driver’s seat and rear floorboard, allowing that 600 pounds weight to be evenly distributed for a low center of gravity. The LEAFis also exceptionally quiet, especially for a car this size — even at 80+ mph on the freeway — and very comfortable to travel in. Braking is excellent thanks to 4-wheel vented disc brakes, and the electrically-assisted power steering has a nice touch. The “range to empty” display indicates how many miles are left, and several other displays help you drive with a light foot. The standard navigation screen pops up when you reach 4-KWh (17 miles) of remaining energy, and shows a map of your range and

the location of nearby charging stations. Whines: Recharge time on any EV varies from 30 minutes to 20 hours, depending on the type of char ger — significantly longer than the 5 minutes it takes to fill up at a gas station — so range is a foremost concern. A 30-minute charge (80 percent of capacity) is possible only with a DC fast charger. Nissan hopes that such chargers will be deployed over the next few years in public places and gas stations, and that there will be 13,000 public charging stations in place by the end of 2012. Level 2 (typical home) chargers require 8 hours or so to replenish a fully depleted battery. Bottom Line: Nissan owns the ground floor of the EV revolution. The first 50,000 LEAFS were built in Japan, with U.S. production beginning in Smyrna, Tennessee this year. The LEAF would be a very nice car, with all the amenities, if it were gasoline powered, so it’s already more than expected of an EV. Currently, the cost per mile is 3 cents, compared to 12 cents for the average gasoline-powered car, An overnight charge is about 30 cents, compared to $3+ a gallon for gas. As battery technology advances, I can’t imagine there not being retrofits that increase range, and reduce charging time. The LEAF makes sense for a lot of America. It may not be everyone’s main ride, but for many, it could be — and for others a cost effective commuter or second car. But the true bottom line is, the future is here, and the LEAF is just the tip of the iceberg.

Three honored with Kitsap Credit Union’s “On the Spot” recognition Kitsap Credit Union (KCU) recently presented Facilities Manager Greg Gagnon and Contact Center Representatives Morgan Womack and Ruby Luna with On the Spot recognition for credit union excellence. Gagnon received recognition for assisting a member who required towing assistance. Gagnon’s primary concern was member safety; the incident was sudden and could have caused injury to the driver. After ensuring the well-being of the driver, Gagnon assisted in redirecting traffic while the vehicle was moved. Employees of the Credit Union’s Contact Center, Womack and Luna received their recognition for providing service that went well beyond member expectations. Womack, nominated by one of her peers, was credited for her efforts to match the right product to members’ financial goals, empowering members to achieve. While Luna’s nomination comes from her efforts to help safeguard a member’s information while he was out of state. Luna’s member was so grateful for her assistance he contacted other Credit Union employees urging her recognition. Glen Co, who was previously recognized for his efforts to upgrade the communication capabilities between members and the Credit Union was also honored with the 2011 Core Purpose Ambassador Award, having received numerous nominations from his peers. KCU’s On the Spot award winners are peer nominated and receive a certificate of appreciation as well as paid time off. Recipients of the annual Core Purpose Ambassador Award receive a keepsake award, a cash bonus and recognition by KCU’s Board of Directors.

Harrison’s Mathis Guild brings music to patient rooms Harrison Medical Center is now offering patients on both of its acute care campuses at Bremerton and Silverdale in-room access to the soothing sights and sounds of The C.A.R.E. Channel. CARE is an acronym that stands for Continuous Access Relaxation Environment. The cost of installation and subscription to this first year of programming was donated by Harrison’s Mathis Guild. “We wanted caregivers and patients alike to have music in the hospital rooms,” said Lisa Phipps, president of the Mathis Guild. “The care team actually brought this to us, as the cost for the channel is outside the scope of operations this year. Our guild members feel this enhances Harrison’s mission of providing exceptional patient care. It’s the right thing to do.” Found on the hospital’s televisions, The C.A.R.E. Channel features stunning nature imagery and original instrumental music. Operating 24-hours a day, it includes unique nighttime programs. Whether day or night, the evidence-based programming has shown to support a healing environment. It promotes restfulness and sleep, a reduction in noise and stress, and it contributes to both patient and staff satisfaction. “The channel gives us one more item in our tool chest to help make a positive difference for our patients and their loved ones,” said Cindy May, chief nursing officer for the 93-year old Medical Center. “Hospital stays have changed significantly since our first day of patient care in 1918. However, what remains constant is our dedication to exceptional healthcare. The CARE channel enhances our healing work going on inside Harrison.” The Maurice S. Mathis Guild, a fundraising chapter of the Harrison Medical Center Foundation will hold its fund raising luncheon will be held on Friday, May 4, at the Kitsap Golf & Country Club. Its goal is to fund hospital programs and services, like the C.A.R.E. Channel that make a positive difference to patients, the care team at Harrison Medical Center and fulfill its broader mission of providing exceptional healthcare. To learn more about the Mathis Guild and the Harrison Foundation, visit its website at or call (360) 744-6760.

Local business. Local needs. For 32 years, we’ve been here for both. As we celebrate our 32nd year, Wet Apple Media continues to be committed to supporting local causes. Since 1979, we have been doing our part to help improve the quality of life for local residents, businesses and nonprofits.

Contributions to our community: Humane Society Jungle Bell Run Junior League Juvenile Diabetes Research Partners Foundation Kitsap Community Foundation Kitsap Community Resources Kitsap County Association of Realtors Kitsap County Historical Society Kitsap County Medical Society Kitsap Economic Development Alliance Kitsap Peninsula Farmers Markets Kitsap Peninsula Visitors and Convention Bureau Kitsap Regional Library Kitsap Wine Festival Kiwanis Clubs Master Gardener’s Foundation Mathis Guild National Kitchen & Bath Association Olympic College Foundation Peterson Farm Fall Fair Port of Bremerton Port Orchard Log Cabin Museum Port Orchard Waterfront Art Walk Rotary Clubs School Districts SK Helpline Social Media Marketing Conference Soroptimists The Bainbridge Island Studio Tour United Way Uptown Gig Harbor Concert Series Vino Kitsap Washington CASH West Sound Art Council West Sound Technology Association WSU Kitsap Extension Services 40 Under Forty

March 2012 Kitsap Peninsula Business Journal • 35

Admiral Theatre All-Chamber Business Expo American Cancer Society Amy Burnett Gallery Audubon Washington Bainbridge in Bloom Bainbridge Island Arts & Crafts Bainbridge Island Garden Club Bloedel Gardens Boys & Girls Clubs Bras for a Cause Bremerton Symphony partner Bremerton YMCA Women’s Shelter Built Green Program Chambers of Commerce – Port Orchard – Bremerton – Silverdale – Bainbridge Island – North Mason – Poulsbo City of Bremerton City of Port Orchard Collective Visions Gallery Crosspoint Academy Dr Penrose Guild Envirostars Festival of Trees Fire Districts Gig Harbor Film Festival Gig Harbor Garden Tour Gig Harbor Museum Greenworks Habitat for Humanity Harbor Hounds Harrison Hospital Foundation Holly Ridge Home Builders Association (HBA) of Kitsap County

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 PCS Web Hosting LLC Contributing Writers Rodika Tollefson Adele Ferguson Don Brunell Dan Weedin Julie Tappero Paula Bartlett Jason Parker Press Releases

36 Kitsap Peninsula Business Journal • March 2012

Email to 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, 2012, 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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FERRY FOOD As a small business owner, an advocate of other small business owners, and a one-time victim of a smear campaign, you are, no doubt, aware of the detrimental impact that negative press can have. I hope you will extend me the courtesy of reprinting the following letter in its entirety in the next issue of Kitsap Peninsula Business Journal. Should you need any further information or validation of the remarks herein, please do not hesitate to contact me. I write to you today out of my concern for the potential damage — even if unintentional — that your recent opinion column, “Random Thoughts... and post-election comments,” in the January 2012 edition of the Business Journal may cause. In a section of that column, you recounted a recent news item about the Washington State Ferries’ reduction in passenger counts due to the fact that “Americans as a group have become more obese over the last decade.” You also asserted that “a strong argument can be made that WSF has contributed to its own problem with the kinds of fare served onboard, less than semi-gourmet dining establishments — chicken strips, donuts, burgers, etc.” Perhaps you are not aware of the distinction between WSF and its vendors. In fact, WSF does not provide food service aboard its own vessels; rather, it contracts with two local, Washington-owned businesses, each of which provides food service on specific runs. My family, all of whom live in Kitsap County, own and operate Olympic Cascade Services, which provides the food service on the larger state ferries travelling the Bremerton, Bainbridge, Edmunds-Kingston, and the San Juan Islands routes. Six years ago, our company “rescued” food service on the ferries after a large multinational company based in Paris, France closed the ferry galleys and put over one hundred people out of work because they

couldn’t operate profitably. Since that time, we have worked to improve WSF galley service by stabilizing employment, improving safety standards, and expanding healthy menu options. For instance, the first thing I did prior to reopening the galleys was to remove the deep fryers from the boats. This change created a safer environment for galley staff, WSF employees, and the riding public; and it set the stage for healthier dining options. If you visit one of our galleys today, you will not find any donuts — nor any equipment to fry food, for that matter. All of our cooking/reheating is done in convection ovens. From a menu that includes over 100 items, only two were originally deep-fried: the chicken strips you mentioned, and corn dogs. Our burgers, which are served on whole grain buns with a fresh condiment bar, include not only beef burgers, but lean chicken and vegan options, as well. While we do have a selection of items in the fast-food or snack category, we also offer whole grain cereals, hot oatmeal, freshly made salads, lean deli-sandwiches and wraps, whole fruit, veggie trays, soups, juices, and natural snacks. Further, we are currently in the process of implementing a cell-phone accessed “QR code” system whereby customers can check nutrition information on our products in real time. Olympic Cascade Service is proud to provide employment to over seventy-five people, most of whom also reside in Kitsap County. While these employees are food hospitality workers, theirs are not minimum wage jobs. Our employees enjoy full union benefits, including very competitive wages, full health coverage for the employee and family, paid vacation and sick leave, and a generous 401K plan. We also believe in supporting our local business community by offering only Washington State wines, apple juice from the Yakima Valley, pastries from Seattle’s Alki Bakery, Ivar’s Clam Chowder, and Tulley’s coffee, among others.

As we’re all well aware, these past five years have not been easy ones for our nation’s economy, or for our ferry system. Despite these hardships, our small company has offered service on our routes three hundred and sixty-five days a year since May 26, 2005. We have been told that we are the first galley concessionaire to actually make an operational profit for WSF, and we have weathered this “perfect storm” without laying off a single employee. While we are extremely proud of our success and the service we offer ferry patrons, there is always room for improvement, and we certainly welcome constructive comments and suggestions as to how we may continue to make the on-board dining experience a more positive part of one of our state’s most treasured icons: its ferries. Nove Meyers, President Olympic Cascade Services

PLASTIC BAGS As the largest investor in Green technology companies from the Island (and one of the most active in the USA), and someone who is actively making an impact on the world clean-energy mix through green companies, I thought you might be interested in an opinion contrary to that of the proposed platic bag ban. I have several thoughts. 1. The primary reason that you should defer this, is that it is not the role of a local city council, who is already mired in high priority budget matters of an almost-bankrupt city, to make environmental choices for me. I can make them myself, and do not need the nanny-state to make them because their big brother Seattle did. I do not care what you think of the Iraq war, or the car I drive, or whether I use plastic bags, nor is it your role to impose your views Continued on page 37

No more Band-Aids for the state budget By Don C. Brunell, President Association of Washington Business There is finally a bit of good news from Olympia. The state’s Revenue Forecast Council reports that tax revenues for this biennium will be $96 million higher than projected last November, and state tax collections for 2013-15 are projected to grow by 6.6 percent. But we shouldn’t get too excited. Even with this additional revenue and the cuts the Legislature made in December’s special session, lawmakers still need to make up about a $1 billion deficit to balance the budget.

Even if they manage to close the gap this time, the basic problem remains: The state budget is unsustainable. Without systemic change, we face a future of ever larger deficits. As Sen. Jim Kastama, D-Puyallup, points out, “Even if we do pass more taxes or make the kind of cuts this year, the long term projection on our state budget basically has to be dealt with or else we’ll be in deficits every single year for the next five years.” Kastama explains that Washington takes in $15 billion a year, but the budget spends $16 billion. If we do nothing, annual revenues are expected to grow to almost

Why is it so hard to do anything that makes sense on Bainbridge Island?

on me, as passionate as a plastic bag may make you. Your role is schools, roads, police, fire, and basic long term planning. Not foreign policy, or modifying my purchasing behavior. 2. The second reason you should defer this, is the poor precedent you set as an elected body, by acting on scant real evidence that there is a direct impact on marine mammals. Most of the arguments are based on repeating of incorrect and anecdotal stories, which have been chanted by citizens and the council. If you want to help marine mammals, better talk to the fishermen, because the overwhelming evidence is fishing and nets cause the almost all the harm. Your priorities are well meaning (I love and want to protect marine mammals too), and are based on bad science. On an energy basis, the arguments for plastic over paper are close to a toss-up on a fully amortized energy impact,

and may actually favor plastic, so its at least debatable. I have heard that some on the council feel there is support for this because a vocal minority has chimed in with 100 emails in support. I would like to add mine in opposition. Please get back to the serious business this island elected you to pursue and and don't patronize us with your political views. We are grown-ups and we can answer the question "paper or plastic" without governmental intervention and the waste of our human and financial resources chasing this issue. Please let the 8th Grade Student Council take it up and educate their parents to make the right PRIVATE choices when they are asked the big question at the supermarket. Robert Nelsen Bainbridge Island

For example, Caterpillar Inc., headquartered in Illinois, is the world’s largest manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. Caterpillar is to Illinois what Boeing is to Washington State. But in a recent Chicago Tribune editorial, CEO Doug Oberhelman pointed out that, while Caterpillar announced plans for dozens of new factories over the last few years and its U.S. workforce increased by more than 14,500 in the last 10 years, none of that growth occurred in Illinois. In fact, the Caterpillar Illinois workforce is the same as it was 10 years ago. Oberhelman noted that, “...when Caterpillar and most other companies look to locate a new factory in the U.S., Illinois is not in the running.” The reason: Illinois’ high cost of doing business and the legislature’s failure to pass a sustainable budget — the same problems employers face in Washington. Our situation isn’t that bad yet, but it underscores the need to develop a budget that lives within the revenues the state collects. Instead of passing temporary fixes so they can adjourn and campaign for reelection, state legislators need to overhaul the budget. That’s a real solution that will foster economic growth and create jobs.

March 2012 Kitsap Peninsula Business Journal • 37

(Should be read in the voice of the late Andy Rooney) I don’t have a huge problem with the ban that some people in progressive west coast communities are proposing on plastic bags. It’s not going to cost me that much. It’s just not a big deal, aside from the fact that politicians who suppose that they know more than the rest of us are going to cram it down our throats, whether we like it or not, so they can feel “progressive” in spite of the fact that the bags are energy efficient, reusable, recyclable and don’t take up much space in a land fill. Hey! They are still plastic and we have way too much of it in the environment. The bags themselves don’t make much of a dent in the environment, however; in fact, probably less than the increased use of paper bags will... Seriously, have you ever been to a paper mill? Have you ever been within a mile of one? They feed trees... living things... into them; and the process smells like death! ...maybe worse, actually! Most plastics are made from natural gas, a byproduct of things long dead, which is plentiful, cheap and comparatively efficient. Plus, they’re just better... That’s why people choose them when they are asked the “paper or plastic” question. There is a lot of attention being paid to some whale that died with thirty plastic bags in its stomach... When I was a kid we had a ANDY LOONEY dachshund that ate the contents of my mother’s change purse... My Turn My dad used the incident to explain about Darwin and natural selection! If that Weenie Dog had been an antelope, she’d have been lion chow on the first migration! All that said: There is a huge amount of plastic in the environment. Few would disagree that it is a source of concern. Why not get rid of something that is truly useless, like plastic water bottles? It’s water for heaven’s sake! You can get it from the tap. On Bainbridge, you will pay a lot more for tap water than you will most places; but, if you filter it, it’s reasonably potable and a lot cheaper than anything you can get in a bottle! You are not supposed to reuse plastic water bottles and I doubt that the overall efficiency of the recycling and re-use of the bottles is anything near the level of the demonized bags... After all: Have you ever tried to pick up Weenie Dog poop with a water bottle? What Bainbridge needs is not a ban on plastic bags, but a real environmental plan with goals, targets and proposals that can really make a difference, rather than me-too, politicallycorrect bans on plastic grocery bags. That way, cranky old guys like me could feel like we were doing something for a reason rather than just having something handy taken away from us! (Editor’s Note: Andy Looney is an alter ego of Kevin DeLorey, local janitor and polemicist. He can be reached at

$19 billion by 2017, but our state’s expenses will grow even faster — to $22 billion. Because the state budget is based on a two-year cycle, that means in 2017 our budget deficit will grow to $6.6 billion. Raising taxes isn’t the solution. Even if legislators increase taxes by a billion dollars, the 2017 budget will still have a $4.4 billion deficit. Unfortunately, elected officials have a history of kicking the can down the road, avoiding the tough choices that Kastama advocates in favor of temporary fixes. That’s like putting a Band-Aid on a severed artery. When the state budget is hemorrhaging red ink, it can’t get better until we fix the underlying problems. So, what’s wrong with limping along with temporary fixes hoping the economy perks up on its own? Look at what’s happening in Illinois. With billions of dollars of unpaid bills, Illinois is now known as “The Deadbeat State.” Even after passing a $7 billion tax increase last year, including a “temporary” state income tax, the situation remains dire because state lawmakers refuse to make needed pension, regulatory and budget reforms. The Illinois governor’s suggestion? Borrow more money. When politicians turn a blind eye to systemic problems, they fester and grow. It sends a powerful message to employers: “Stay away.”

The Return of Pointed Political Commentary After four years of holding public office and generally taking a hands-off approach in this space to people I had to work with, now that I’m back in the private sector, there’s not a lot of reason to continue that policy. So enjoy, or… I’ve been watching the unfolding drama on Bainbridge Island surrounding the impending exit of City Manager Brenda Bauer with mild amusement. Is anyone really surprised that she’s being shown the door? After all, a new City Council took office in January, and that’s been standard operating procedure since the change of government from Strong Mayor to Council/Manager. In the interest of full disclosure, I’m not friends or personally well-acquainted with anyone on the Council, and I’ve never met Brenda Bauer in person, although we have spoken on the phone a couple of times. I’ve worked with Mayor Debbie Lester in a very limited role on the HousingKitsap board; met former Mayor Bob Scales once at a quarterly Mayor’s dinner; served with Bill Knobloch on the CenCom board; with Kirsten Hytopoulos on KRCC, and have met Anne Blair a couple of times, although my wife has served with her on the KPFD board. That said, as a former elected official interfacing with Bauer, and as a member of the news media observing and reporting on her, my opinion is that she did one hell of great job fixing the hugely screwed up mess she inherited. Is she the most pleasant person to deal with? I found her to be rather combative, abrasive, and borderline rude, in my dealings with her when Port Orchard was competing with Bainbridge for some transportation money.

But the bottom line is, she fought hard for her City — and she prevailed. She’s a hard-nosed manager who isn’t afraid to tackle tough issues head on, go to the wall to protect her City’s interests, or make the kind of hard decisions that were necessary to stabilize the city’s finances. The firings of several City employees a judge ruled was unjust, and resulted in the City having to rehire them with back pay, was an unfortunate incident. However, the City Manager works directly for the Council, so did Bauer act without their knowledge, or without prudently first seeking legal LARY COPPOLA advice from supposedly The Last Word competent City attorneys? That’s where the blame should lie — not on her shoulders. Politics is a blood sport on Bainbridge, where it seems that to some Islanders winning a political and/or philosophical argument is much more important than actually fixing the problems, or doing what’s best for the taxpayers. Case in point: The City anticipates spending upwards to $300,000 to find Bauer’s successor — who may turn out not be nearly as good at the job as she is. Because of the well-publicized decades of political turmoil, the chances of attracting the best and/or brightest in Western Washington are significantly reduced because any experienced city manager worth his or her salt knows it’s an 18-24 month job at best. Candidates would have to either be desperate — or from out of the

area and/or clueless about how things actually work on Bainbridge — to take the job. Personally, I think spending that kind of money to win what amounts to little more than a political urinating contest would be an unconscionable waste in good times — much less in this “new normal” era of seriously reduced resources. Bainbridge taxpayers deserve better — but it’s up to them to demand it.

While on the subject of the County Commissioners... Certain business leaders in South Kitsap — and other parts of the county — are desperately looking for both a Republican and a Democrat to challenge South Kitsap Commissioner Charlotte Garrido who is up for election this year. With the top two primary, the strategy appears to be to find two challengers, and take her out in the primary. The problem is, no one seems to be willing to step forward on either side. There have been some high-profile names bandied about, but as of yet, no movement. Stay tuned. This still may get interesting yet.

The County Commissioners recently floated a trial balloon about moving their meetings back to daytime — supposedly to save money on staffing. In my view, this is a monumentally bad idea. The amount of money it will save is negligible in comparison to the overall personnel budget, since many of the employees who staff the meetings are salaried. Those that aren’t could be given comp time. The reason the meetings were originally moved to nighttime some years back was to improve transparency and encourage citizen participation. If the change back is made, people who work, and want to attend Commissioner meetings will find themselves disenfranchised once again. As a compromise, it was suggested that issues of importance, and public hearings could be scheduled during the evening, and moved closer to the places that would be impacted. On the surface, that sounds great, but the Commissioners are still bound to have their regular meetings anyway, so this actually has the potential to increase costs more than they already are. The move to evening meetings was a positive change, and has increased citizen participation and overall transparency. Since it isn’t broke, they shouldn’t try to fix it.

With the presidential election getting into full swing, it’s just amazing watching the Republican candidates cannibalize each other, and in the process poison huge segments of the electorate against whatever Republican does prevail — which I believe will be Mitt Romney. Call me clueless, but I simply can’t understand why conservatives would support Newt Gingrich. He’s everything they rail against both in terms of morals and ethics, and in my opinion, epitomizes absolutely everything that’s wrong with the American political system today. Meanwhile, there is no coordinated Republican strategy at the national level to defeat Obama — who I suspect will be reelected. In the process of destroying each other, not one single Republican candidate has articulated a compelling reason not to re-elect Obama. Hello... I’ve said it before and I’ll say it again… There isn’t a way for Republicans to shoot themselves in the foot they haven’t thought of, but I have great faith in their ability to invent new ones.

change for 50 years and says we've had no global warming since 1998. Temperatures have not increased since then, he says, despite the fact the United Nations Intergovernmental Panel on Climate Change predicted there would be a one degree rise by 2010. Climate change, says the professor, is being used as a lever to push for a world government with huge amounts of money involved, hundreds of billions and trillions. He's been studying glaciers, old and new, and says they will allow you to determine what the climate is doing. When it's cold and snowy the glaciers advance and when it is warm and dry they retreat. Either way, they leave footprints in their wake so you can tell what the glaciers have been doing. Data learned from that is that global climate changes have been doing on since the beginning of geologic time, especially in the last 10,000 years. There have been ice ages and warming periods. Most of the last 10,000 years have been warmer than it is now. "The climate oscillates back and

forth," said the professor. "We've had 27 climate changes in the last 400 years, warm, cold, warm, cold. It switched from cool to warm in 1977 and we had 20 years of global warming. The question is, what's causing it?" If there is one thing constant about climate is that it is always changing, he said. "We're coming out of a Little Ice Age which happened about 500 years ago. We've been coming out of it ever since. It's been getting warmer about one degree a century. There's nothing new about it. You can expect to find about 24 to 30 years ahead of us before it starts to warm up again. It might even be more than that." Now retired from teaching, Professor Easterbrook says he is even more active in climate change research than he was before. He's working with an international group of about 50 solar physicists, glacial geologists and astrophysicists. Stick to it, professor. It's common sense we need, not panic. (Adele Ferguson can be reached at P.O. Box 69, Hansville, Wa., 98340.)

38 Kitsap Peninsula Business Journal • March 2012

“Global Warming” explained I've really missed Dixy since her death since she was my primary source on why all this fuss about climate change being mostly caused by man is a bunch of hooey, but I'm glad to report Professor emeritus Don Easterbrook of Western Washington University is taking her place. Not by his choice. I don't know him and he doesn't know me, but a friend sent me a copy of an interview he did with Western Washington University's The Western Front newspaper which puts him squarely on our side. Our side being those who resist the notion that many industries will have to be revamped or eliminated to cut down on the amount of pollutants they put in the air that are causing global warming. Effect of that would cost millions if not billions of dollars and wreak havoc on the economy even worse than what we're going through now. For years now, there has been a campaign on the part of the greenies — environmentalists —to convince us that

we are causing the warming of the earth with the pros and cons arguing over who has the most and best scientists backing them up. The Western Front editorialized that in most of the scientific community, global warming is a real concern. It quotes the Union of Concerned Scientists there is a 90 percent probability ADELE FERGUSON that human activities are Politics the reason for temperature increases in the last 50 years. Natural disasters such as hurricanes, earthquakes and floods have been increasing and the evidence global warming is involved is irrefutable, says the WF. It calls for asking our state and national representatives to seriously address the problem. Enter Professor Easterbrook, a glacial geologist who has been studying climate

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Kitsap Peninsula Business Journal 25/03