July 2012 Vol. 25 No. 7
The Voice of Kitsap Business since 1988
Kingston Outdoor Adventures pg 27
Bamboo from ’Bama Founders of Bainbridge-based Teragren launch new venture to create domestic bamboo industry Beach Study pg 30
Inside Special Reports: Healthcare Quarterly, pp 6-13 Enviroment & Ecology, pp 30-33 People, pp 2, 3 Financial, pp 14, 15 Technology, pg 16 Real Estate, pp 23-25 Photos courtesy Teragren Bamboo
By Tim Kelly, Editor There's a common thread that runs through China, Bainbridge Island and Alabama. And it's spun from bamboo. In coastal Zhejiang Province, bamboo forests provide raw material for a manufacturing facility owned by Teragren, a company based in Bainbridge Island. Founded by Ann and David Knight in the 1990s, Teragren's bamboo flooring and other products are available at retailers
throughout North America, as well as online. The eco-savvy company's success in making bamboo an integral component of the green building movement over the past decade has garnered national attention; for example, in 2006 Teragren made "The Green 50" list published by Inc. magazine. But that's yesterday's news. The Knights have moved beyond Teragren to focus on their new venture — to replicate in the environs of Tuskegee an industry that's
Larger photo: Moso bamboo plantlets at about six months of growth, currently undergoing propagation in Alabama. Inset photo: a moso bamboo forest in the Zhejiang Province of China where Teragren’s factory is located. been thriving for years south of Shanghai. It's actually phase two of their original plan, David Knight explained. "About 15 years ago, Ann and I decided there was a future in creating a domestic bamboo industry," he said. "We were looking for something to create long-term wealth and have an impact on the world, and to apply our view of the triple bottom line." That's the business ethic of operating a company with equal concern for people, planet and profits. Their vision began with forming a new company, Resource Fiber LLC, and a subsidiary, Resource Fiber/Alabama. The latter is a partnership between the Knights and former Alabama first lady Marsha Folsom, who's been leading economic development efforts in the state's Black Belt Cover Story, page 9
Human Resources, pg 28 Automotive, pp 34, 35 Editorial, pp 36-38 Home Builders Newsletter, pp 19-22
Annapolis Fitness Studio pg 6
Habitat for Humanity of Kitsap County selects new executive director Daryl Daugs has been chosen to be the new executive director of Habitat for Humanity of Kitsap County. He comes to the affiliate with more than 25 years of leadership experience from a broad range of nonprofit, governmental and social service arenas. “We have been searching for an individual with experience across multiple
arenas to be the strategic and visionary leader for the organization”, said Thomas Moore, president of Habitat’s board of directors, “and Daryl has that experience. In addition Daryl Daugs to his social service experience, he has a background in construction and led teams of volunteers from the Pacific Northwest to help rebuild
homes in Louisiana following Hurricane Katrina.” After 10 years in the business world, Daugs moved into public service, holding leadership positions in several nonprofit organizations focusing on families and children in need over the last 20 years. Daugs has been an appointed governmental official for Walla Walla County as director of human services. “I am honored to be selected to join the team at Habitat. The need for decent and affordable housing is a challenge in many
communities, including Kitsap County. Homeownership through Habitat for Humanity is a key component of lifting up families in need,” Daugs said. A long-term resident of Kitsap County, Daugs grew up in Port Orchard. He and Leslie, his wife of 28 years who is a member of the Bremerton City Council, currently live in Bremerton. They have three grown children, and two grandchildren. Daugs will officially begin his new position July 1, moving full time to Habitat once he completes the transition from his appointed position in Walla Walla County in August. Habitat for Humanity of Kitsap County strives to eliminate substandard housing in Kitsap County. Along with community members, Habitat for Humanity builds decent and affordable housing in partnership with people who are living in inadequate housing and who are unable to secure adequate housing by conventional means. Habitat selects homeowner-partners based on their need for adequate shelter, their ability to pay for the Habitat home, and their willingness to partner with Habitat for Humanity.
2 • Kitsap Peninsula Business Journal • KPBJ.com July 2012
Gateway Christian Schools hires Sherri Miller as admissions coordinator Gateway Christian Schools announced the recent appointment of Sherri Miller as the Coordinator of District Admissions. She will oversee all elements of new student enrollment and retention as well as community outreach. Miller previously served in a similar capacity overseeing Crosspoint Academy Sherri Miller admissions and marketing for nearly five years. For the past two decades, she has been heavily involved in Crosspoint’s Theatre and Music Department as an active parent and volunteer. She also has served as a co-leader on four Crosspoint mission trips to Guatemala. “We are thrilled that Sherri has joined our staff, recognizing her significant contributions of the past. We are confident that given her skill set and knowledge of Christian education, she will play a very pivotal role in uniting our various programs and campuses,” said Nick Sweeney, administrator of Gateway Christian Schools. Gateway Christian Schools is a regional Christian school district with a preschool through sixth-grade campus in Poulsbo and, effective July 1, the K-12 Crosspoint campus in Bremerton, which Gateway recently acquired from Seattle-based Crista Ministries. For more information, visit www.gatewaychristianschools.com.
Senior engineer rejoins staff at Art Anderson Associates Art Anderson Associates, a Bremertonbased multidisciplinary engineering services firm, has rehired Doug Koenen as a senior mechanical engineer. A previous employee of the firm, Koenen was brought in to help the company meet its growing facilities engineering workload. He worked for the company from 1990-97 and 2005-08, and will provide mechanical Doug Koenen design and project management as part of the firm’s facilities division. He is currently assigned to projects for the Bremerton School District, Kitsap Transit and Lockheed Martin. Prior to his return, Koenen spent three years as a project engineer with the Washington State University Extension Energy Program, where he was the task lead for Bonneville Power Administration’s E3T program investigating emerging energyefficient technologies in the Pacific Northwest. He also spent a year working for PSF Mechanical, where he prepared mechanical and piping designs for a LEED Silver Fleet Region Readiness Center in Everett and served as the responsible party for the LEED mechanical sections. For more information about Art Anderson Associates’ projects, employment opportunities and community involvement, visit www.artanderson.com.
CleanSpace Northwest adds staffer to design basement solutions
Gig Harbor firm creates North American/European legislative database A Gig Harbor company is now offering information companies wholesale access to a massive North American and European legislative database. Companies may license the database either for internal use or to add unique analytics for resale in the information marketplace, according to Beckie Krantz, CEO of KNS Information Services. "We have seen real demand for such a database," Krantz said, adding that an East
Kitsap Bank teller retiring after 26 years; new hire joins marketing staff Kitsap Bank has announced that Bunny Langeliers, a vault teller at the Poulsbo branch, has decided to retire after 26 years with the bank. “Her co-workers have the highest respect and appreciation for her,” said Marilu Aganon, Kitsap Bank’s operations officer. “Her dedication and loyalty to the bank was expressed Bunny Langeliers in the way she served her customers who will surely miss her.” Kitsap Bank also announced that Lindsey Kays has has been hired as marketing coordinator. She is a lifelong resident of Kitsap Lindsey Kays County and a graduate of North Kitsap High School. She holds an associates degree from Olympic College, and a bachelors degree in Business and Marketing from Columbia Southern University. Kays joins Kitsap Bank with four years of marketing experience, primarily in the medical field. “We are pleased to welcome Lindsey to the Kitsap Bank team,” said Shannon Childs, senior vice president/marketing director. “Lindsey’s skills complement those of the marketing department, and she shares our vision for promoting Kitsap Bank’s brand through our communications and involvement with our community.”
July 2012 Kitsap Peninsula Business Journal • KPBJ.com 3
CleanSpace Northwest is pleased to announce the addition of Bruce Ramey to its staff as a system design specialist. Ramey is a longtime Kitsap resident with years of experience in the residential construction and mortgage industry. He is looking forward to helping clients with their wet basement and crawlspace issues. CleanSpace Northwest is the local authorized Basement Systems Dealer for the West Sound and can be reached at 360698-0260.
Coast company recently became the first licensee of the new product. "We're excited," she said. "We began developing this after we received queries about the idea two years ago. It was a natural fit for us. We've tracked legislation nationwide for many years." KNS offers a retail product called Legicrawler (www.legicrawler.com), a web crawler for legislation. The company has offered government relations solutions for companies since 1989. Most states and developed countries now offer legislative information online; however, relatively few providers offer the Beckie Krantz information on a single platform because of significant programming differences among jurisdictions. "Yes, it has been a puzzle to figure out," said Krantz, who is the company's lead programmer. "But it has been worth it. We want to do our part to level the information playing field."
from page 4 agricultural region. Folsom, who grew up on a farm in the state where cotton was king in the past,
believes bamboo production could be "truly a game-changer" in Black Belt counties, where there’s lots of idle land and "the poverty levels are some of the highest in the country." Her connections have helped Resource
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plans to build in Fiber enlist agriculture Alabama. researchers at state Within a generation, universities to help them the Knights and Folsom prepare to implement envision a robust large-scale commercial industrial complex that farming of bamboo. One public-private will produce a wide array partnership for research of products from and development is with Ann Knight different bamboo species David Knight Tuskegee University, — engineered building where historic figures materials, textiles, ‘We were looking for such as Booker T. bioplastics and charcoal, something to create Washington educated to name a few — and will long-term wealth and black students in the provide thousands of have an impact on the post-slavery era and jobs and revive the world, and to apply George Washington region's economy. our view of the triple Carver did research on “Besides just creating bottom line.’ crops such as peanuts jobs,” Knight said, “our that poor farmers could goal is to create local grow as an alternative to — David Knight wealth as well.” the cotton monoculture They’re even of the Deep South. engaging community Today, bamboo is a rapidly renewable colleges to develop curricula that will train resource that is a sustainable alternative to people for all those new industrial jobs on wood-based products. the horizon. "Just last week we delivered 2,000 If this ambitious vision becomes reality, bamboo plants to a greenhouse they have at the whole shebang — the entire resource (Tuskegee) university, so we can begin to production and manufacturing process at work together to develop best practices for the epicenter of this potentially propagation," Knight said. "By this time multibillion-dollar industry in a next year we should have somewhere transformed backwater — will be not just around 15,000 plants just from those we carbon neutral, but carbon negative. have there, and six months later it should be Instead of adding to the greenhouse gas 50 to 60,000 plants." effect, it will take carbon dioxide out of the Although bamboo grows amazingly fast earth's atmosphere. and moso — the species most widely used Knight said Resource Fiber will be in industrial production — reaches 80 feet working with the International Living in height, raising a crop isn't as simple as Future Institute to design the buildings sowing seeds in a field. That's because where bamboo products will be made. bamboo plants flower only once every 60 “They’re essentially a step beyond years or so. LEED,” he said, referring to the Leadership But the plants can be cloned through a in Energy and Environmental Design patented tissue culture process developed certification program of the U.S. Green by John Woods, a retired professor and Building Council. renowned plant biology researcher. He will “We want to minimize our be an advisor on crop propagation for environmental footprint in every manner Resource Fiber and the company's thirdpossible,” Knight said. party bamboo growers. Along with eco-friendly farms and A year after their company was formed, factories, the Resource Fiber master plan the new venture is also at the stage where also calls for developing an educational they're looking for investors, Knight said. center with a bamboo demonstration farm. "We've been at this about a year with our “We will have a full-on educational heads down and just going after it," he said. component so people can come in and get a "It's been self-funding at this stage, but sense of what we’re doing and really we're ready for some angel funding. We're understand the benefits of bamboo.” finalizing our investment opportunity Knight laughs when asked if he and his presentation now." wife had any ties to Alabama that drew the As farmers in the Black Belt transition to longtime Bainbridge Island residents there. planting bamboo, Teragren will buy what's “None,” he said, explaining that it was produced initially, but eventually Resource fortuitous timing that when they pulled Fiber plans to harvest a crop large enough Bamboo, page 5 to supply the manufacturing facilities it
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Kitsap Food Co-Op reaches critical timeline in plan to open store
from page 4 back from Teragren to shift directions a year ago, Folsom reached out to them. Production costs are increasing in China as global demand for bamboo products grows, Knight said, making it an ideal time to start their domestic industry. “We like to say it’s a crop whose time has come,” said Folsom, who shared that her husband loves wearing bamboo socks. “We’re looking toward the future, we really are,” she said. “Ann and David are both quite visionary.” Working to create a “next-generation” sustainable industry is what motivates them, 61-year-old David Knight said. “We want to spend our time doing something beneficial for more than just us.”
so someone can make a down payment of as little as $25 and receive nearly full benefits (except for patronage refunds) while making installments. Members can also vote and are eligible to serve on the board of directors. The main goal of the co-op is to make locally produced foods available year-round to members and the general public, who can shop at the store without a membership. It also gives local farmers and producers an avenue for demand beyond the farmers market season.
“A co-op can provide a gathering place and destination for the community,” Simans said, adding that the dream is to have a kitchen and garden for demonstrations so the co-op can be a source of education. Plans are in the works to hire a general manager, but Simans said more memberships are needed for that expense to be covered financially. The goal for the co-op is to be self-sustainable, as any other retail business. “The co-op is a business and an
organization. It’s democratic because it’s owned and controlled by members,” Simans said. “The money stays in the community. And the member-owner needs are the priority.” The store is expected to employ 20 to 40 people per year initially. “The co-op will exist if the community wants it,” Simans said. “At this point, it’s critical to find that out by the number of members we get.” For more information, go to kitsapfoodcoop.org.
July 2012 Kitsap Peninsula Business Journal • KPBJ.com 5
By Rodika Tollefson Organizers behind the Kitsap Community Food Co-Op are racing against the clock to double membership by the end of the year. While a potential location has been identified for the future member-owned store, more memberships are needed in order for the organization to move ahead with capital funding. As of June 6, 310 people had joined as member-owners and that number needs to be at least 750 by the end of the year, according to board vice president Meg Simans, in order for bank financing to be pursued. “We’re moving steadily but we’ve hit a couple of plateaus in memberships,” she said. “If we don’t get enough members by the end of the year, we will have to reassess.” In November, the co-op leadership signed a letter of intent to locate the store on the planned Youth Wellness Center campus on Wheaton Way in Bremerton. The site used to be home to Bremerton Junior High. The new center will house the Bremerton Boys & Girls Club, and the nonprofit Lindquist Dental clinic has also shown an interest. “It’s not the official location yet. The details are being worked out as far as site design and finances,” Simans said. One option that is being considered by the coop is the renovation of an existing building on the campus and adding more square footage to it. The store is envisioned to be 6,000 to 10,000 square feet. The Kitsap Community Food Co-Op has been in planning stages since 2008, and Simans said it takes a good five years or more to organize a new one. Ideally, the board would like to have a building open in under two years. Owner-members pay a one-time fee of $200 and are entitled to various benefits such as discounts and profit-sharing. Current members also can receive discounts at other co-ops, even if the Kitsap one doesn’t have a store open yet. Membership payments are being accepted
New fitness studio offers workouts with a waterfront view
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By Tim Kelly, Editor Kristi McGee or the other trainers at Annapolis Fitness will lead you through gentle yoga stretching or push you to your limit in a butt-kicking Body Combat workout. But they don't do it in a gym. The business that opened recently in a renovated waterfront building next to the Annapolis foot ferry dock in Port Orchard doesn't have any exercise machines. No treadmills, no weight training benches, no racks of barbells — and no monthly memberships. As the Annapolis Fitness website makes clear: "We don't look like a gym and we don't operate like one." It's not a 24/7 dropin facility, and nobody does a solo workout. "We want to keep it a small group fitness facility," says McGee, 38, who has worked at gyms and conventional fitness clubs during her 10 years as a trainer. But neither she nor any of her trainers ever put exercisers through their paces in a setting as scenic as this unique studio with its large windows looking out on Sinclair
Annapolis Fitness Studio and Whiskey Gulch Coffee Co. recently opened in this renovated waterfront building next to the Annapolis ferry dock in Port Orchard.
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Inlet. Glass doors open onto a deck above the shoreline, and one panel of windows can be rolled up like a garage door, creating an open-air feel on days when the weather's pleasant. "I love being down there," says trainer Sandy Small. "There's nothing better than the salt air and the breeze. It feels like you're outside when you open up those windows. "Sometimes we run our participants down to the end of dock and back." With a backdrop of passing ferries and sailboats, Small says fitness groups enjoy workouts in a much different atmosphere "compared to a closed-in facility with nothing to look at and no fresh air." McGee assembled a group of likeminded trainers who offer a range of fitness classes as well as one-on-one personal training. They are not Annapolis employees, but rather independent contractors who rent the studio as needed for classes they instruct. It's a model that McGee and her husband, Rob, believe will work well for their business. "The trainers we have are amazing; we all work so well together," Kristi McGee says. "If they do well, we all do well." "As a building owner, I get my rent paid," Rob McGee explains, "and (the trainers) are fairly compensated." As word spread before the business opened about how the studio would operate, there was a lot of interest in the local fitness community, Kristi McGee says, and there are several more trainers waiting for a chance to use the space. "When she told me what they were doing, I said I want to be part of that," says Small, a longtime friend of McGee's. "I expect it will be a little slow to start; we have get our name out there," she adds. "It's kind of a new thing to Port Orchard." Annapolis Fitness offers visitors a free first visit to a class, and after that participants pay a fee per class session or can buy passes for multiple sessions at a discount. McGee and Small both say the small group fitness instruction, as well as the studio's pay-by-the-class approach instead of monthly membership fees, will draw people who are more committed to sticking with a fitness program and want more personalized attention when they come in for a workout. "We're appealing to people whose time is very valuable," McGee says, "and they're willing to pay a little bit more for the studio atmosphere." The studio doesn't need any other staff, because there's no front desk requiring a receptionist. Studio, page 7
Trainer’s televised weight loss success shows what’s possible Participants in group workouts at Annapolis Fitness studio might notice a familiar face they've seen on television. And if they know who he is and what he's accomplished, it could well inspire them to persevere in their own commitment to get fit and be healthy. Jonathan McHenry, a 32-year-old graduate of South Kitsap High School, got the opportunity to be on the realityTV series "Extreme Makeover: Weight Loss Edition." At the time he was selected in late 2010, McHenry weighed about 550 pounds, but he began an intensive three-month regimen of workouts and dietary changes under the tutelage of the show's host, renowned trainer Chris Powell. After that, he continued on his own back home with his weight loss and conditioning program, and McHenry's success will be featured on a "Makeover" telecast on ABC in July.
Although the exact amount of weight he lost since he began his transformation won't be revealed until the show airs July 22, McHenry's bio on the Annapolis Fitness website says "With guidance from Chris Powell, Jonathan was able to lose over 250 pounds in one year's time." Annapolis owner Kristi McGee said McHenry, an assistant instructor for group fitness classes who also has a full-time sales job, is working to get his personal trainer certification. According to his website bio, "Jonathan learned from his experience how to eat right, work hard, and reclaim control of what he wanted for his life," and now as a fitness instructor he is "passionate about passing on what he has experienced, learned, and accomplished" to help others reach their goals.
Tim Kelly photo
Kristi McGee leads a workout in the studio with windows that open onto the shoreline.
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from page 6 "We use a software system that allows you to book and pay for your classes online, or with a smartphone app," Rob McGee says. The software program, called MindBody, "essentially becomes our front desk, and it creates an account for each client. It takes care of our scheduling stuff and is our point-of-sale." Although they can teach any classes for which they're certified instructors, the trainers work with Kristi McGee to create a coordinated overall program for the studio to offer. "Yoga is a staple," McGee says, and among the more rigorous fitness classes at the studio, "right now the really popular ones are CXWorx classes." An intensive 30-minute body core workout of choreographed routines, CXWorx was developed by the Les Mills international fitness company. On a recent weekend, McGee brought in a Les Mills instructor to train the Annapolis trainers in the company's Body Combat class, a 55minute cardio workout that incorporates martial arts routines. The studio also offers TRX, a suspension training program developed by the Navy SEALs as a workout that can be done in confined spaces. It's one of the few classes at Annapolis that uses any equipment, as participants go through a range of exercises using the TRX Suspension Trainer, "a high-performance training tool that leverages gravity and the user's body weight" in a workout to build strength, balance, flexibility and core stability. Annapolis also is in the midst of its first F.I.T. (Fitness Interval Training) Camp, an eight-week weight loss and conditioning program that includes nutrition education along with five workouts a week. Along with the fitness studio, the McGees also opened a coffee shop and café called Whiskey Gulch Coffee Co. They're looking for tenants to lease the top floor of their remodeled building, which they bought as a bank-owned property after it sat vacant for a couple years. The building's previous occupants included the Happy Teriyaki restaurant.
Workplace wellness could be win-win for employees, employers By Rodika Tollefson Silverdale regulars may have noticed some increased walking activity around town earlier this spring, as staff from The Doctors Clinic took to the streets. Physicians and employees participated in a Workplace Walk-Off Challenge, with teams competing against each other for the highest number of steps taken during a four-week period. Almost 50 percent of the staff participated, focused on the goal of reaching at least 10,000 steps a day. By the time the 40 teams of five people were done, they had walked a cumulative 48 million steps, or approximately 24,000 miles. “I was thrilled and overwhelmed at how many people participated,” said Kyrsten Wooster, benefits specialist for The Doctors Clinic who oversees wellness. “I think the team component was huge — people wanted to walk with each other, and peer pressure helped a little.” Wooster said they’ve done other wellness campaigns previously and their success inspired future ideas. She approached Propel Insurance and Premera BlueCross, the clinic’s health insurance providers, and they supplied pedometers to participants. The winning team — which logged 2.1 million steps (or 1,060 miles) — walked away with a trophy and a
“golden pedometer.” “We’re a health and wellness organization so we’re trying to incorporate that into our culture,” Wooster said, adding that some employees also got family members involved while others are still seen wearing pedometers. “Overall, employee attitude at work has been more positive — what’s better than taking a walk at lunch,” she said. “It’s about being a happier organization.” Workplace wellness has become one of the focus areas in recent years in the efforts to improve public health and combat chronic disease. It’s an increased topic of discussion as the obesity rates in the United States continue to grow — in 2010, 12 states had obesity prevalence of 30 percent or more, compared with only nine states the year before and none in 2009, according to the Centers for Disease Control and Prevention (Washington’s rate is at 25.5 percent). “Health is influenced by the environment we live in, the places we work, live and play,” said Scott Daniels, deputy director for Kitsap Public Health District. “Why would a business person be concerned? Because (wellness) can decrease health care costs, increase productivity and improve staff morale and retention.” The health district has a smoking cessation
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program for employers, and is expanding its focus on workplace wellness as part of the 5210 initiative with several community partners (see related story). Daniels said employers could do even simple things as part of their policies, such as supporting physical activities during lunch or providing healthier food choices during meetings. He noted that one in two people in the United States has a chronic disease, and 75 percent of U.S. health care spending is for chronic diseases, which also have indirect effects such as higher disability rates and workman’s compensation. “It forces everybody to stop and think, what can we do to prevent these things,” he said. Some companies are offering “perks” such as subsidized athletic club memberships or wellness programs through their health insurance policies. KPS Health Plans, for example, includes a wellness component as part of all its health plans. A member portal has risk-assessment tools along with suggested 13week interactive programs and health information. “It’s like a personal coach. It will email you and nag you but you have to be self-motivated,” said Cathie Valentine-McKinney, director of public relations and communications for KPS. KPS also offers a smoking cessation
program as an extra- cost option to employers that includes counseling. “Since the program was first implemented in January 2011, it has been quite successful with 26 KPS federal health plan members enrolled in the program,” Valentine-McKinney said. A smoking cessation program is one of the ideas Watson Furniture explored, working with the health district to research information. The company implemented a reimbursement incentiv e to help employees quit smoking. “We understand it’s hard to make that transition so we try to help them be able to make that commitment,” said Jessica Reicks, employee services manager at Watson. The company has a broad wellness program, which ranges from encouraging employees to use the on-site walking trail and providing a small gym on premises, to having showers in the locker rooms and arranging weekly visits by personal trainer Kay Jensen for a yoga class and guided walks. Jensen also does blood-pressure checks and provides advice to individuals. “We make it a more personal experience … and I think the personal attention definitely helps — as well as having the option to go outside for a walk,” Reicks said.
Workplace, page 12
Who uses the money? taxpayer subsidies to purchase health insurance. In all likelihood, IPAB-type programs will expand beyond Medicare to these new government-controlled health insurance plans, all in an effort to control costs. It is no surprise that most of the country’s health care spending is concentrated on 10 percent of the population. Most of the money spent by auto and home insurance companies is concentrated on a small percent of
centralized bureaucratic decision-making and rationing. All patients should be able to control their own health care dollars, have access to a true free market in insurance and make their own health care choices. The majority of health care money would still be spent on the sickest people, but it would be us, not distant government officials, who would be making the key decisions about how we receive care. • Dr. Roger Stark is a retired heart surgeon and a health care policy analyst at Washington Policy Center, a non-partisan independent policy research organization in Washington state. For more information, visit washingtonpolicy.org.
July 2012 Kitsap Peninsula Business Journal • KPBJ.com 9
Roger Stark, MD, FACS Liberals and conservatives agree the rapidly increasing cost of health care is unsustainable in the U.S. Last year the country spent $2.4 trillion, comprising 18 percent of our economy or gross domestic product. Although the rate of increase has tapered off slightly the past two years, the U.S. is still spending twice the rate of inflation for health care. Who are the people using these health care dollars? Who are the most expensive patients? The federal Agency for Healthcare Research and Quality (AHRQ) tracks health care expenditures and patient demographics. In 2008 and 2009, the last years of complete data, 10 percent of patients used 70 percent of all health care dollars. In other words, most of the country’s health care expenses were concentrated in a minority of people. Although individuals moved in and out of the high-expense group, almost 50 percent remained high-cost users in both 2008 and 2009. Relative to the overall patient population, high-cost users were more likely to be 65 and older, women and people with government-provided health insurance. This is no surprise since older age is associated with more disease, women live longer than men, and government-run Medicare is essentially the only health insurance available for seniors. The AHRQ study provides critical information for government centralplanners who are attempting to control health care costs. Most of U.S. health care expenses are concentrated on the elderly and virtually all of our seniors have Medicare as their insurance. Controlling costs comes down to controlling Medicare spending. The Affordable Care Act (ACA), the new federal health care law, cuts $580 billion out of Medicare. Most of these cuts are on the provider side with decreasing government payments to hospitals, doctors, nursing homes, ambulance services and dialysis units. The ACA establishes the Independent Payment Advisory Board (IPAB), which will function as a bureaucratic committee that decides who gets care and how much in the Medicare program. The federal law also emphasizes comparative effectiveness research (CER) with the same goal of determining “best practices” for doctors. In reality, the IPAB and CER will use cost as the main determinant for diagnostic and treatment decisions. Hospitals and doctors will only be paid for care that meets predetermined government guidelines. Bureaucratic central-planners will then ration health care by deciding what medical treatments are allowed and what providers get paid. The new federal health care law adds 20 million new participants into Medicaid. The law also adds millions of people to the new state insurance exchanges, where individuals and families will receive
policyholders as well. The difference, of course, is that home and auto policyholders control their own dollars and have a broad market of insurance plans to choose from. The tragedy for our patients trapped in the existing Medicare and Medicaid programs is that, although they technically have insurance, they do not have control of their own healthcare dollars. As long as the government controls the money and spending, patients will be subject to
Nationwide ‘5210’ wellness initiative works its way to Kitsap By Rodika Tollefson For the past few months, word has been spreading around the Kitsap Peninsula about “Ready, Set, Go! 5210,” a new initiative focused on targeting obesity and chronic disease, with a special emphasis on youth. The YMCA of Pierce and Kitsap counties has been promoting various 5210 activities and pilot programs, and Kitsap Public Health District is spearheading outreach efforts related to workplace wellness. The campaign is modeled after Let’s
Go!, which was launched several years ago in the Portland, Maine, area and has since been adopted around the country. The numbers 5-2-1-0 stand for five or more fruits and vegetables, two hours or less of recreational screen time, one hour or more of physical activity and zero sugary drinks per day (plus more water and low-fat milk). The initiative targets six sectors: school, after school, early childhood, workplace, health care and community. In Kitsap County, the idea for implementing 5210 came out of a process
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called Kitsap Community Health Priorities, initiated by the health district, United Way of Kitsap County and Harrison Medical Center. Various agencies and community leaders participated in the process, which identified community health priorities, including access to physical activity and healthy foods. “The workgroup has identified 5210 as the umbrella to get that work out into the community. It’s a community-driven process. ... It’s a lot of groups working together to prevent chronic disease,” said Scott Daniels, deputy director for Kitsap Public Health District. The Y has been coordinating activities for community and school outreach. All the Pierce and Kitsap county branches kicked off a 12-week challenge in January, asking members to sign a pledge to follow at least one of the 5-2-1-0 guidelines and soliciting feedback from participants. The Bremerton Family YMCA launched a pilot project with third-graders at West Hills Elementary this school year, and Haselwood Family YMCA in Silverdale has been supporting implementation at Cottonwood Elementary. Both branches will be expanding the efforts to other schools in the fall, and are also partnering
More healthcare stories online at kpbj.com: • Kitsap County’s whooping cough epidemic • ‘Meaningful use’ requirements add red tape challenges for providers with Harrison Medical Center for community implementation strategies. “Maine had a combination of soft and hard measures and was able to demonstrate over five years a decrease in obesity rates,” said Susan Buell, Bremerton Family YMCA associate executive director and chair of the physical activity and healthy foods workgroup that’s part of KCHP (www.kitsapchp.com). “Harrison, Peninsula Community Services and the Navy hospital are early adopters (in Kitsap) and working on tracking measurements.” The Y has also been tracking the results of the school activities. At West Hills Elementary, for example, the number of 5210, page 11
Group Health, Franciscan agree to broaden partnership Group Health Cooperative has approved a five-year extension to a contract for Franciscan Health System to provide inpatient care and other medical services for Group Health members in the South Puget Sound region. The contract for coordination of services has been in place since 1996; the extension is effective in January 2013. Officials from both nonprofit healthcare systems say the contract renewal is an innovative approach that reflects both sides’ commitment to broadening their partnership beyond the acute-care setting and to
exploring innovative models for care delivery. Physicians and staff at both organizations will collaborate to improve coordination of services; evaluate new models for care delivery; maximize the utilization of electronic health records and explore codeveloping insurance products and other resources that can enhance access, quality and safety. Both organizations will also reach out to share best practices and improve care coordination with leading providers in the South Puget Sound region. Group Health has been working in Seattle, Spokane and Snohomish County with
leading providers to extend a model of care focused on patients and improved quality. Franciscan Health System, which has hospitals and medical clinics in Pierce, South King and South Kitsap counties, has been a key provider of acute-care services for Group Health clients in the South Sound since 1996. To date, most admissions of Group Health enrollees for inpatient care have occurred at Franciscan’s St. Joseph Medical Center in Tacoma. All five of Franciscan’s hospital emergency departments, and several Franciscan Medical Group physicians, also care for Group Health patients.
July 2012 Kitsap Peninsula Business Journal • KPBJ.com 11
from page 10 kids receiving at least 60 minutes of daily physical activity (based on self-reported surveys) has grown significantly after the launch of the 5210 program. The number of kids consuming sugary drinks and spending more than two hours daily on recreational screen time decreased significantly as well. In Pierce County, the YMCA has been working with several community partners, including MultiCare and Mary Bridge Children’s Hospital. The program was launched in the county following a summit focused on childhood obesity, organized by the ACHIEVE coalition. The Gig Harbor branch started a pilot project at Evergreen Elementary this past fall, called Get Up and Move, which included student assemblies, before-school activities, nutritional programming for families, as well as fitness classes for teachers. Gig Harbor Y yoga teacher Nancy Keiter and her husband, Ken, offered a matching grant in March, up to $10,000 total, to encourage community members to donate toward the program. Those funds will be used to expand 5210 both at Evergreen and possibly at other Peninsula School District schools next year, among other things. Other upcoming outreach efforts include presentations prior to movie screenings during Gig Harbor’s CinemaGig program this summer. “It’s been a gradual progression of introducing 5210 into the community,” said Kirstin Hawkins, branch communications and outreach director for the Gig Harbor Family YMCA. She said the awareness has been growing. Buell said that as more partnerships are created, the momentum is building in Kitsap as well. A website is under construction to present the tools, policy examples and other information, and Daniels said employers can contact him directly for information at (360) 337-5287 or email@example.com. The work the 5210 group is doing in the workplace sector fits well within one of the health district’s priorities, to combat chronic disease. “There’s evidence-based intervention across many sectors to try and decrease chronic disease in communities. We’re trying to address the risk factors, which include lack of physical activity and (poor) nutrition,” he said. Several employers, in addition to KPHD, have expressed interest in modeling the tools for workplace wellness. “There’s a lot of movement toward workplace wellness, especially because of rising costs in health care and companies are looking for ways to offset that,” said Yolanda Fong, public health nurse with KPHD’s chronic disease prevention program and member of the 5210 workgroup. The goal of the workplace aspect of 5210 is to implement wellness practices at six sites by the end of 2015 and show a positive change in healthy work environments by adopting formal health policies and practices.
Franciscan evaluates options for state’s home-health services decision The Washington State Department of Health has turned down Franciscan Health System’s request for administrative review
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FHS, headquartered in Tacoma, currently offers hospice services in Kitsap County, along with operating a clinic in Port Orchard and St. Anthony Hospital in Gig Harbor. The nonprofit healthcare organization applied for a home-health services certificate of need in King, Pierce and Kitsap counties. In its application for Kitsap County, FHS estimated the area would need six providers for home health by 2015 but currently only has four certified as Medicare and Medicaid providers. FHS officials have said its move to expand to home health stemmed from health care reform, which will mandate hospitals to ensure patients stay healthy once discharged and don’t return for inpatient services too soon.
The state denied the certificate of need for Kitsap County in March based on financial errors on the application. State officials said the financial information did not allow them to determine whether the project was viable. The application was strongly opposed by Harrison Medical Center, one of the existing providers of home care. With the request for administrative review of the March decision denied, Franciscan has not said yet what its next step would be. “We continue to evaluate our options, however, which include the possibility of either appealing or filing a new letter of intent and application,” spokesman Gale Robinette said in mid-June.
participation from about a third of the employees. They tracked fitness and nutritional goals for eight weeks using free tools available online through the President’s Challenge program. Employees walked trails, took Zumba classes and worked out together at Union Square Fitness next door (the company provides gym memberships). The three top competitors received prizes at the end of the challenge. “I think that health and wellness is a huge priority for everyone, no matter the stage of life. It’s beneficial to your productivity at work, your relationships, your confidence — it all helps your productivity,” Kamin said. Last year, Hood Canal Communications paid for a nutritionist to visit the site to work with individuals and Kamin is looking at other ideas for the future. She said part of the inspiration cam e from Mason County Health Department, which organized a workplace challenge and a competition among businesses a few years ago. That’s where she learned about the free online tracking tools. “One thing about the presidential challenge website is that it’s free and simple, there’s no training or licenses and it’s autonomous, so it has confidentiality built in,” she said. “I hope more businesses use these t ools and can even have groups compete with each other.” Mason County is not currently offering a formal workplace challenge program because of funding but can still offer tools to companies and the goal is to bring the program back. “Because employees spend so much time of their day at work, we feel it’s a good place to improve wellness. It’s a good way to reduce sick days and make employees more productiv e,” said Heidi Iyall, program coordinator for Mason County’s health department. “A lot of the things we promote are creating a healthy culture in the worksite — what kind of strategies and policies can you implement?” She said the increased awareness about the obesity epidemic, including the media attention, is helping motivate individuals and organizations. “We’re one of the least healthy industrial nations in the world and people are becoming aware that a lot of it has to do with healthier choices but also with our environment — it’s not just about willpower,” she said. “People are more open to hearing the message.”
from page 8 Encouraging workplace fitness and providing incentives is especially helpful for employees who have families and other commitments, said Kathryn Kamin, public relations and marketing director for Hood Canal Communications in Union. She said a lot of times, people want to be more active but have too many other priorities. To encourage physical fitness, Kamin recently organized a fitness challenge, which had
Affordable Care Act not what the doctor ordered coverage through state exchanges, which would function as insurance brokerages. “A business that has more than 50 employees must purchase health benefits for employees, or else pay a fine or a tax,” he said. That amount, starting in 2014, would be $3,000 a year for each worker who opts out of employer-provided coverage, or $2,000 for each employee if the business doesn’t offer or discontinues offering health insurance. But considering that the average annual cost of health coverage is about $12,000 (typically shared between employer and employee), Stark said a lot of employers might choose the less expensive option of not providing health care benefits.
“If you’re an employer who’s trying to be competitive, and worrying about the bottom line, … you might ask yourself ‘why am I in the health insurance business at all?’” he said. As for insurance companies being required to issue policies with no restrictions for applicants’ pre-existing medical conditions, Stark said that won’t be viable if the Supreme Court rules the ACA’s “individual mandate” requiring everyone to buy health insurance is unconstitutional. “It would make it virtually impossible for insurance companies to mitigate their risk,” he said. Medicare, Medicaid impacts If the ACA goes into effect unchanged, Medicare funding would be slashed by more than $500 billion to cover the cost of implementing reforms over the next 10 years, with most of that amount cut from reimbursements to medical care providers. That will have a huge impact, Stark said, because it will be harder to find doctors willing to take Medicare patients. “There are physicians today having a hard time keeping their doors open with what Medicare pays,” he said. The outlook for Medicaid may be even more dire, even though the Affordable Care
Act provides $450 billion more in federal funding over the next 10 years to greatly expand the state-administered program. “The ACA adds at least 20 million people into the existing, already broke Medicaid program,” Stark said. Patient-centered approach As he and the Washington Policy Center see it, a more effective and affordable path to reform would be shifting to a health care system that empowers individuals — rather than government — to make more and better-informed decisions about their medical care. “What we advocate is consumer-driven health care,” Stark said. As he explains in his book “The Patient-Centered Solution” that was published in January, that approach would promote more use of personal Health Savings Accounts, along with high-deductible insurance plans, to give people more control of their own health care dollars. He also proposes changes in the tax code to give individuals and families who buy health insurance the same tax benefits employers get for providing coverage. Another piece would be allowing consumers to buy insurance across state lines to make the market more competitive. And Stark maintains that sensible reforms,
not just further reductions in reimbursement rates, are needed in Medicare and Medicaid. He contrasted the way the 2010 health care reform law pushed by President Barack Obama was passed with support only from Democratic members of Congress, with the passage of Medicare and Medicaid in the 1960s with majority support from Democrats and Republicans. And while noting that Democrats prevented any Republican proposals from inclusion in the ACA, Stark also pointed out that there was no attempt to address health care reform during the Bush administration when Republicans held a congressional majority. So if the Supreme Court effectively derails the Affordable Care Act — and Stark said he was expecting a 5-4 decision finding the individual mandate unconstitutional — it won’t represent a victory but rather an important chance to start over on doing health reform right. Just restoring the status quo is no solution, he stressed. “What’s driving the cost in health care,” he said, “is a model that’s unsustainable." And should the court ruling allow the ACA to stand, then another crucial decision looms. “There’s one other step, and that’s the November election,” Stark said. “I think the November election becomes that much more important to the future of our country, and the future of health care.”
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By Tim Kelly, Editor By the time this issue of the Kitsap Peninsula Business Journal is published, the U.S. Supreme Court will have announced its ruling on the Affordable Care Act. If that ruling upholds the health care reform law that Congress passed in 2010, then Dr. Roger Stark will be even more worried than he was a couple weeks ago when he dissected the Affordable Care Act in a presentation to a local business group. His criticism of the ACA is not based on partisanship or ideology. Stark, a retired heart surgeon who is a health care policy analyst for the Washington Policy Center, did not once use the pejorative “Obamacare” to refer to the law when he spoke at the Port Orchard Chamber of Commerce lunch on June 14. But he recited a litany of critical flaws he sees in the Affordable Care Act: the mandates it imposes on employers; substantial cuts in reimbursement to Medicare providers; a huge expansion of the financially strained Medicaid program; the resultant decreased access to care for low-income and elderly people; failure to achieve universal coverage in the U.S.; and the fact that rather than “bend the cost curve down in health care” as promised, the ACA would hugely increase spiraling U.S. health care costs over the next decade. That last one is most critical. “It’s the cost,” Stark said during an interview after his speech to the chamber group. “It doesn’t matter whether you’re liberal or conservative, everyone agrees the problem with health care is the cost.” The initial estimate from the Congressional Budget Office when the ACA was passed in 2010, Stark noted, was a 10-year cost of $940 billion to implement all the reforms; and that was projected to yield a $100 billion reduction in the U.S. deficit. In the two years since then, however, “the CBO had a chance to really evaluate the whole law,” he said, and its revised cost estimate is $1.76 trillion over 10 years, upending the original estimate of deficit reduction. Now the effect on the deficit is pegged at a $300 billion increase over 10 years. “By 2020, we’ll be spending 21 percent of our gross domestic product on health care,” he said. Employer mandates The employer mandates in the ACA that take effect in 2014 will likely produce the unintended consequence of fewer businesses offering health coverage for their employees, Stark said. In that case, many of those workers would need to obtain
Don’t take a vacation from investing By Jay Seaton Summer is here — which means a vacation most likely isn’t far away. Whether you’re hitting the road, jumping on a plane or even enjoying a “staycation” at home, you’re probably looking forward to some down time with your family. But not every aspect of your life should be relaxed. Specifically, you don’t want to take a vacation from investing — which means you need to become a diligent, year-round investor. Here are a few suggestions that can help: Keep on investing. Don’t head to the investment “sidelines” when the financial markets experience volatility. You don’t want to be a nonparticipant when things turn around because, historically, the early stage of any market rally is generally when the biggest gains occur. (Keep in mind that past performance of the market is not a guarantee of future results.) Keep learning. In just about any classroom, the best students are the ones who get the most out of their education and put their learning to the best use. And the
same is true of the investment world: The more you know about the forces that affect your investments’ performance, and about why you own the investments you do, the more likely you are to make the right moves — and the less likely you’ll be to make hasty and unwise decisions. Keep your focus on the long term. As an investor, you need to look past those events — such as natural disasters, recession fears and political instability abroad — that may have noticeable shortterm effects on the financial markets but little impact over the longer term. So instead of making investment decisions based on today’s headlines, think about what you want your financial picture to look like in 10, 20 or 30 years, and take the appropriate steps to help make that picture materialize. These steps include following a long-term, disciplined investment strategy that’s suitable for your individual needs, making adjustments as time goes on and working with a professional financial advisor who knows your situation and can help you make the right choices. Keep looking for growth opportunities. To achieve your long-term goals, such as a comfortable retirement, you’ll need to own growth-oriented investments, such as stocks and other
investments that contain equities. The percentage of your holdings devoted to stocks should be based on your risk tolerance, time horizon and proximity to retirement. But no matter what your situation, you want a portfolio that’s designed to help you meet your investment goals. Keep relying on “hardworking” investments. To help ensure your investments are working hard for you, choose those vehicles that can help you in multiple ways. For example, when you invest in a 401(k) or other employersponsored retirement plan, your money grows on a tax-deferred basis, which means it can accumulate faster than if it were
placed in an investment on which you paid taxes every year. (Keep in mind that taxes are due upon withdrawal, and withdrawals prior to age 59½ may be subject to a 10 percent IRS penalty.) Plus, you typically fund your 401(k) with pretax dollars, so the more you put in each year, the lower your taxable income. Furthermore, with the choices available in your plan, you can create a good mix of investments. Enjoy your vacation this summer. But no matter what the season, don’t take a break from investing. Your efforts may pay off nicely for you in the future. (Editor’s note: Jay Seaton is a financial planner at Edward Jones in Port Orchard.)
Avoid your investment ‘biases’ By Jim Thatcher If you’re like most people, you go through many complex thoughts and emotions when choosing investments. In fact, a field of study called “behavioral finance” is devoted to understanding why people make their investment decisions. As part of their work, behavioral finance researchers examine “biases” that affect
people’s investment selections. And as an individual investor, you, too, can benefit from understanding these biases – so that you can avoid them. Here are some of the key biases identified by behavioral finance experts: Overconfidence – Overconfidence Biases, page 15
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14 • Kitsap Peninsula Business Journal • KPBJ.com July 2012
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Don’t let fear of change overrule a gut feeling you fall from here, you will get hurt and your mom will kill me." He then asked, "How will she kill you?" "With her bare hands," I replied, "Now get going." Once we were back to safety by the base of the tree he asked if we could go out again just a little further. So I said, "Okay, one more time." This time I let him take the lead, but I kept one hand on his shoulder so I could grab him if he started to fall. We made it out a little further than we had the time before, and I started getting the uneasy feeling in the gut of my stomach that says, "this isn't safe I need to get out of here." So I told him once again, "Come on we’re going back." Of course there was the, "Ahhhh Dad," but we turned and started
market decline – you might think it’s now “undervalued,” leading you to “snap up” even more shares. However, XYX shares could also fall due to a change in its fundamentals, such as a shake-up in the company’s management or a decline in the competitiveness of its products. As an informed investor, you need to work with your financial advisor to determine the causes of an investment’s decline and any actions you may need to take in response. Confirmation – If you are subject to confirmation bias, you may look for information that supports your reasons for choosing a particular investment. This type of bias can lead to faulty decision making, because you’ll end up with onesided information. In other words, you may latch onto all the positive reasons for investing in something – such as a “hot stock” – but you may overlook the “red flags” that would cause you to think twice if you were being totally objective. To fight back against confirmation bias, take your time before making any investment decision – a quality investment will almost always be just as good a choice tomorrow as it is today. Being aware of these investment biases can help you make better decisions – and over a period of many years, these decisions can make a difference as you work toward achieving your financial objectives.
from page 14 leads investors to believe they know the “right times” to buy and sell investments. But if you’re constantly buying and selling in the belief that you are correctly “timing” the market, you maybe wrong many times, and you may incur more investment fees, expenses and taxes than if you simply bought quality investments and held them for the long term. Representativeness – If you make decisions based on preconceived ideas or stereotypes, you may be suffering from a bias called “representativeness.” For example, if you see that investments from a particular sector, such as energy, have performed particularly well in one year, you might think these types of vehicles will do just as well the next year, so you load up on them. Yet every sector will go through ups and downs, so one year’s performance cannot necessarily predict the next year's performance. Instead of chasing “hot” investments, try to build a balanced portfolio that reflects your individual goals, risk tolerance and time horizon. Anchoring – Similar to representativeness, an anchoring bias occurs when investors place too much emphasis on past performance. If you own shares of XYZ stock, for instance, and the stock price hit $60 per share, you might assume XYZ will always sell for at least $60 a share. But if XYZ drops to $30 per share – perhaps as a result of a broad-based
walking. I made him hold my hand. Just when we were almost to safety he shook his hand free of mine. He wanted his independence and so I let go. I turned and was watching him as he confidently strutted down the remainder of the log when all of a sudden he lost his balance. Everything happened so fast that I didn't have time to reach out for him. But as I think back to that moment in my mind, it was in slow motion. Instead of just falling off the log, he made a little hop expecting to hit the ground. Little did he realize he was still several feet off the ground. He made a semi-safe landing. Legs tangled in the twisted broken branches, and he lost his shoes trying to climb out. I grabbed him and pulled him to safety. Other than a few scratches on his arm he was
Parker Financial staffer passes state test to be Investment Advisor Representative Heather Dawn Henrichsen, office administrator at Parker Financial LLC, has passed the FINRA Series 65 test required to qualify and operate as an Investment Advisor Representative in Washington state. The exam focuses on areas that are important for an advisor to know when providing investment advice, including topics such as retirement planning, portfolio management strategies and fiduciary obligations. “We’re very proud of Heather’s accomplishment. Passing the Series 65 test is extremely difficult. We know her added knowledge will continue to help our firm move to the next level,” said Jason Parker, president of Parker Financial LLC.
(Editor’s note: Jay Seaton is a financial planner at Edward Jones in Bremerton.)
safe and uninjured. Needless to say we won't be making that little trek any time soon. I meet with people all of the time who hav e a bad gut feeling about something they are doing in their financial lives. They know the ever so familiar sensation in their gut that is screaming at them to make a change and to head for safety, but they are afraid to death of making an irreversible financial mistake. One of the biggest challenges many people have in retirement is overcoming the hurdle of change. If your gut is saying to make a change, then don't let fear or greed stop you from doing the right thing. Because frankly, if your mother finds out, she will kill you with her bare hands. 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, WA. 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. Jason Parker is insurance licensed and offers annuities, life & long term care insurances as well as investment services.
July 2012 Kitsap Peninsula Business Journal • KPBJ.com 15
By Jason R. Parker One sunny Saturday afternoon I decided to go for a walk in the woods with Oliver, my 6year-old son. He is very adventurous and loves to just run and explore pretending he is a warrior of sorts. I'm never quite sure what he is mumbling or screaming, but from the way he swings sticks around and the sounds he is making I am pretty sure he is in the midst of conquering the world. Being a dad is the greatest joy of my life. I love watching my kids discover and learn and remind me how to play. This particular afternoon we came across a very large tree that had blown over in a wind storm the year prior. The tree was strewn across the forest floor and stretched out about 20 feet over a large ravine. We jumped up on the log and started to walk toward the ravine. As I walked out on the log I became increasingly aware of how very high we were, and how a fall from this height would likely result in a broken leg or something. So I turned around and said come on let's go back. Oliver being Mr. Tough Guy said, "Oh come on Dad. Are you scared?" Now I don't know about you, but I'm not one to admit fear to my little guy. I just said, "Oliver, we are turning around because if
A border-crossing guide for travelers with digital devices Electronic Frontier Foundation Our lives are on our laptops — family photos, medical documents, banking information, details about what websites we visit, and so much more. Thanks to protections enshrined in the U.S. Constitution, the government generally can’t snoop through your laptop for no reason. But those privacy protections don’t safeguard travelers at the U.S. border, where the U.S. government can take an electronic device, search through all the files, and keep it for a while for further scrutiny — without any suspicion of wrongdoing whatsoever. For doctors, lawyers, and many business professionals, these border searches can compromise the privacy of sensitive professional information, including trade secrets, attorney-client and doctor-patient communications, research and business strategies, some of which a traveler has legal and contractual obligations to protect. For the rest of us, searches that can reach our personal correspondence, health information and financial records are reasonably viewed as an affront to privacy and dignity and inconsistent with the values of a free society. Despite the lack of legal protections against the search itself, however, those
concerned about the security and privacy of the information on their devices at the border can use technological measures in an effort to protect their data. They can also choose not to take private data across the border with them at all, and then use technical measures to retrieve it from abroad. Some of these technical measures are simple to implement, while others are complex and require significant technical skill. There are two government agencies primarily responsible for inspecting travelers and items entering the United States: the Department of Homeland Security’s Customs and Border Protection (CBP) and Immigration and Customs Enforcement (ICE). The law gives CBP and ICE agents a great deal of discretion to inspect items coming into the country. While it’s impossible to know for sure how they’ll handle every border search situation, agencies have published their policies for searching electronic devices and data. Different people will choose different kinds of precautions to protect their data at the border based on their experience, perception of risk, and other factors. All computer users who carry important information on portable devices should be
16 • Kitsap Peninsula Business Journal • KPBJ.com July 2012
“Partners in Business” “Telebyte Northwest provides low-cost, quality internet service with friendly and reliable support. And, they are locally owned. “Telebyte quickly resolves our computer networking issues that we are unable to solve in-house. “Telebyte is a great business partner.” — Wendy Levenseller Evergreen Lumber
aware of two basic precautions: • Making regular backups, which ensures that your important information stays available to you if your computer is ever taken from you, lost or destroyed. (If you don’t have access to your computer, you’ll still have access to your data.) • Encrypting the information on the computer, which ensures that your information stays confidential from other people whom you don’t authorize to access it. (If you lose control of your computer, other people won’t have access to your data.) In the infancy of personal computing, experts put particular emphasis on the need to make backups. Today, we think these two precautions are really halves of a larger whole: making sure that that information stays available to those you want to have it, and that it’s not available to others. Applying these precautions can help you deal with travel incidents well beyond the comparatively unusual case of border searches, like if you leave a laptop in a taxi or if someone steals your backpack or purse from a café. The right time to get started with both of these precautions is before your trip, when you’re at home or at work and have more time and greater access to other
people who can help you get set up appropriately. Every year millions of computer users lose important information accidentally for want of a good, current backup, so there are many good reasons other than the possibility of a border search or seizure for you to have a current backup. In modern practice, backups are most often made onto another computer over a network. Backups are especially important for travelers, since, aside from the possibility of a border search or seizure, travel presents many opportunities for losing your computer or data. Storing information with an online service, sometimes also called a "cloud service," is a popular choice today; it may have significant benefits for reducing the amount of data that could be exposed to a border search. For instance, you could keep your email with a webmail provider and not on your laptop, or edit documents on a network service like Google Docs, or store files with a service like SpiderOak instead of on your computer. Devices like Chromebooks can do this automatically so that you rarely physically store information on a laptop at all. Relying on network services and network storage has both advantages and disadvantages for privacy.
Free download lets users hear text read aloud
annual competition honoring the best in advertising, corporate communications, public relations and identity work for print, video, interactive and audio. It is the leading international awards program honoring creative excellence for communication professionals. The Communicator Awards are judged by the International Academy of the Visual Arts, an organization of visual arts professionals dedicated to embracing progress and the evolving nature of traditional and interactive media. See www.iavisarts.org for more information. To see the award winning website, visit www.jzworks.net. For additional information visit www.jennergy.com or call 360-779-0699.
komando.com When so much of everyday life is lived through computer screens, the visually impaired can have an especially hard time. It's easy to take eyesight for granted, especially when it comes to reading. Even if you never crack open a book, you might be surprised at just how much you end up reading in a given day. At least on your computer, you have the option to hear those words aloud. NaturalReader is one of those options. Just highlight any block of text and press Control+F9. NaturalReader will say the text aloud through your speakers or headphones. You'll also be able to save audio as MP3 or WAV files to listen on your iPod. NaturalReader is free, but will offer to upgrade to a paid version, which includes more features and different humansounding voices. The free download is available at www.naturalreaders.com.
Website design work earns award for Jennergy Inc.
360-613-5220 • TELEBYTE.COM
360-373-2137 • NW-COMMNET.COM
Poulsbo-based Jennergy Inc. has received a Silver Award of Distinction in the 2012 Communicator Awards, for the company’s work on the JZWorks website. The Communicator Awards is an
Consultant’s e-book on social media available free Business consultant Frank Kenny, past executive director of the North Mason and Bainbridge Island Chamber of Commerce, is offering free downloads of his new e-book “Get Up To Speed, Social Media for Chambers.” The book focuses on how chamber leaders can use social media to increase membership and remain relevant in the changing business world. Free downloads are available at http://frankjkenny.us2.listmanage1.com/track/click?u=75078ac77c6 a425731b3
Artistic flourishes abound in new restaurant, sports bar year although they’ve been together 17 years, met when they were competing merchandisers at the Rose Festival. "I used to be on the road selling merchandise with bands," Spencer said, recalling how she went to the festival hoping to sell a stockpile of glow ropes. She called Meyers, who had the Rose Festival concessions contract, but he wouldn't let
Cookhouse, page 18
Tim Kelly photo
July 2012 Kitsap Peninsula Business Journal • KPBJ.com 17
By Tim Kelly, Editor A new South Kitsap restaurant will offer a feast for the eyes, in more ways than one. The work of numerous local artists and artisans went into creating the atmosphere — inside and out — at Everybody's American Cookhouse & Sports Theater, at the top of Mile Hill Drive in Port Orchard. "I'm a real backer of local art," said Barbara Spencer, co-owner of the restaurant with her husband, Nove Meyers. Muralist Bob Henry painted a woodsy scene on one wall of the dining area that can seat about 100 people, and the patio outside the bar will be adorned with a water feature done by Laurie Smith (known as the "Leaf Lady") of Advanced Concrete Artisans in Port Orchard. Next to the patio stands a sculpture of a bear holding a fish done by chainsaw carver extraordinaire George Kenny of Belfair. Kenny, who also created a sign out in front using the restaurant logo, carved the bear into a 15-foot trunk that was left after a dead fir tree was removed. The portion of the tree that was cut down wasn't discarded; it yielded wood used for moulding, and a slab about 15 feet long was installed as the surface of the bar where customers will belly up. And patrons in the sports bar, which occupies a large part of a 2,500-square-foot addition to the building, may be dazzled watching a Mariners or Seahawks game on a 12-by-20-foot screen. Except there's actually no screen in the bar; a special projector from BoxLight in Belfair beams broadcast video onto a wall painted with a special reflective finish that provides a screen-like surface. The classy design touches even extend to the restrooms, which have customized concrete countertops that Smith crafted. Of course, the owners invested in much more than artwork for their new establishment. "We basically stripped out the kitchen," Spencer said. "It was in disrepair, to say the least." Part of the space from the addition to the building was used to expand the kitchen, a necessity for their in-house baking and for the catering they hope will be a significant part of their business. Everybody's American Cookhouse is the first full-service restaurant venture for Meyers and Spencer, who for the past several years have provided food service on Washington State ferries (for the Bainbridge, Bremerton, Kingston and Anacortes routes) through Olympic Cascade Services. That business is an affiliate of Cascade Concessions Services, their food service operation that has long provided special event catering in the Pacific Northwest at venues ranging from the Portland Rose Festival to SeaFair in Seattle, and from racetracks to the Ellensburg Rodeo. Meyers and Spencer, who married last
A slab from a fir tree cut down next to the restaurant was milled to use as the surface of the bar. Another slab was used as a mantel in the dining room, and other wood from the tree provided moulding in the renovation of the building’s interior.
from page 17 her on his turf. Undeterred, she hawked her goods at the edge of his designated territory along the parade route. "We became friends after that," she said. Spencer and Meyers, a white-haired former seminarian, moved to Kitsap County five years ago. Despite the recession and faltering economic recovery since then, they express confidence that their new business venture will be successful. "We think this is a really good location, and we think there's a strong need for this kind of restaurant in the community," Meyers said. The bank-owned building they bought, which had been vacant a few years, was originally a Pietro's Pizza in the 1980s. The Tweten family — operators of other area restaurants including the Lighthouse on Bay Street in Port Orchard — converted it into the Clubhouse Grill, which was subsequently sold to owners who went out of business after a couple years. "When this place was in its better years," Meyers noted, "it was doing well." Spencer said they have a track record of taking over operations that haven't been doing well and turning them around. "The ferries are a good example of that," she said. Besides their extensive food service management experience, the owners said they're in a solid financial position to invest
Tim Kelly photos
Owners Nove Meyers and Barbara Spencer stand in front of a mural that local artist Bob Henry painted on a wall in the dining room of Everybody’s American Cookhouse & Sports Theater. At left is a sculpture that chainsaw carver George Kenny created from the trunk of a fir tree that was removed. It stands next to the patio outside the bar. in their restaurant. "Fortunately we're properly capitalized, to be able to weather the first year of building the business," Meyers said. As for the menu they're developing with executive chef Jason Beyer, Spencer described it as "American comfort food, kind of kicked up a notch." Cookhouse specialties will include smoked prime rib, and bacon-and-sausage gravy over biscuits to give a twist to the traditional breakfast
favorite. The menu and the bakery also will offer vegan and gluten-free choices, and Spencer said the kitchen will get some of its fresh produce from the gardens at South Kitsap Helpline, the nonprofit that operates a local food bank. The restaurant will serve breakfast on Saturdays and Sundays to start with, and may expand later to weekdays. In the expanded bar, there's seating separate from the sports theater area, to
provide a spot where customers can enjoy a more conversational atmosphere. They may have occasional live entertainment in the bar, but it won't be "a nightclub atmosphere," Meyers said. They do hope, he said, that their restaurant and sports bar will become "the go-to place" in South Kitsap. • Information for job applicants is available at firstname.lastname@example.org.
18 • Kitsap Peninsula Business Journal • KPBJ.com July 2012
Port Orchard auto repair facility earns AAA Top Shop Award AAA has recognized Grey Chevrolet in Port Orchard as a AAA Top Shop. AAA Washington evaluates every Approved Auto Repair facility in Washington and northern Idaho to measure quality of repair work, customer service, and overall shop cleanliness. From customer satisfaction surveys each year, the top performing facilities are honored with a AAA Top Shop Award. Before being eligible, each facility must meet the standards to be included in the AAA Approved Auto Repair network. For customers, AAA approval signifies guaranteed, quality service from a repair facility that upholds strict requirements and offers a full range of services. AAA Approved Auto Repair facilities: • Meet or exceed AAA standards regarding equipment and certified technicians, and have an excellent track record of customer satisfaction. • Guarantee service or repairs for 12 months or 12,000 miles. • Must offer a written estimate; if requested in advance, return replaced parts; and obtain approval before doing any work beyond the original estimate. • Provide complimentary vehicle inspections to AAA members when having other services performed. • Agree to let AAA arbitrate any disputes regarding quality of service or repairs.
July 2012 Edition
Events And Activities Wednesday, July 4th HBA CLOSED Have a Safe & Fun Holiday! Thursday, July 5th Developers Council Meeting — CANCELLED Next Mtg. August 2nd Tuesday, July 10th Builder Breakfast, 7:30 a.m. Port Orchard Family Pancake House Guest: Commissioner Garrido Forklift Certification Training, 1 p.m. HBA Members & Non-Members Register with BIAW Special Meeting, 5:30-7:30 p.m. AHC Board of Trustees (all members welcome) Interviews: South-End County Commissioner Race - HBA Wednesday July 11th Kitsap HBA Remodelers Council, 4:30 p.m. Using Social Media and YouTube Effectively for the Small Business Friday, July 13th HBA Builders Classic Golf Tournament 11 a.m. Registration 1 p.m. Shotgun Start Tuesday, July 24th Peninsula Home & Remodel Expo Cmt., Noon Thursday, July 26th Executive Committee Meeting-2 p.m. Gov’t Affairs Meeting-2:30 p.m. Board of Directors Meeting-3:30 p.m.
1st Annual Home Builders Association of Kitsap County Builders Best Awards Late last month, the HBA honored several builders for the quality of their work and the contribution they make to our community in building beautiful, high quality, places for people to live and work in the Kitsap County. We want to thank all the companies that entered this year ’s first ever Builders Best Awards and honor the winners as follows: M u l t i - Fa m i l y — B r e m e r t o n H o u s i n g Authority for their incredible new apartment options at the new Bay Vista Development in Bremerton. To learn more, visit www.bayvistacommunity.com. Taking home two awards, Cook Construction Inc., won: Speculative New Construction under $300,000 with Land for their well appointed, affordable, family focused construction, and Judges Choice Custom Home Best Value, for completing a dream home, on a tight budget while giving the homeowner high quality craftsmanship and easy ways to make other upgrades later. To see more about Cook Construction Inc., visit www.cookconstructioninc.com. Custom Home $300,000-$499,000 — Armstrong Homes of Bremerton for their beautiful beach escape, built on a difficult, narrow, sloped lot. To see more about Armstrong Homes of Bremerton visit www.armstrong-homes.com. Also taking home two awards, Kitsap Trident Homes Inc., wowed the judges in the cateogory, Custom Home $500,000-$800,000, for a spectacular home with a keen eye to detail, as well as the category, Custom Home over $800,000 where the home owners are now living in a dream come true home with every comfort and amenity they desired. To see more about Kitsap Trident Homes Inc, visit www.kitsaptridenthomes.com. Those that know Cedar Bay Homes won’t be surprised to find that they took home the coveted Custom Home Built Green® Construction trophy. Working with the homeowners closely, this home is beautiful, sustainable, and healthy. From hard surface flooring, to thoughtful design decisions, the end result is a home that will stand the test of time in function and design. For more information about Cedar Bay Homes visit www.cedarbayhomes.com.
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
LIFE STATE DIRECTORS Bill Parnell
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 email@example.com Expo & Events Director . . . . . . . . Toni Probert firstname.lastname@example.org Administrative Coordinator. . . Kathleen Brosnan info@KitsapHBA.com
Home Builders Association of Kitsap County 5251 Auto Center Way, Bremerton, WA 98312 360-479-5778 • 800-200-5778 FAX 360-479-0313 www.KitsapHBA.com
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July 2012 Edition
It has been a very busy season for the HBA staff and political action committee. With the political season in full Wayne R Keffer swing, Robert and the Construction Inc. government affairs committee have been working overtime to 2012 President interview as many candidates as possible. Why does that matter? The HBA has a diverse group of members that have many different viewpoints and all of those members are encouraged to take part in the government affairs meetings. The HBA is widely recognized as a knowledgeable, positive contributor in state and local government. The Candidates recognize and value our role in government. They understand that our members interface with government on a daily basis and understand the issues that affect all of Kitsap’s citizens. As to the candidate interviews and endorsements so far, it has been a positive experience to be involved with the interviews this year. As a whole this year ’s candidates have been consistently the highest quality that I have experienced in the past several years. The high quality candidates are creating real choices across the whole spectrum of elected offices. In fact, several races have been downright hard to choose between several highly qualified candidates. The Candidates that do receive our endorsements are selected for many different reasons. Those reasons could be past voting records that support the building community and small business, or their ability to articulate their understanding of their role to reduce over-regulation of our citizens. And it is worth mentioning that we have and will continue to support candidates on both sides of the aisle. It actually amazes me that sometimes candidates we don’t end up endorsing are so blind to that fact. If they would understand that our membership wants nothing other than to better our community, employ local workers, and feed our families, they might see that the support of this association hasn’t ever been based on party politics. In fact those that understand our issues best find that they have strong allies in the HBA membership, regardless of party affiliation. I am looking forward to this year ’s election results, with great candidates and informed citizens we just might have half a chance of bringing sense to this state’s political system, and creating some certainty that could allow our industry a chance to become strong again. On another note I would like to thank all the participants and attendees at our first Builder’s Best Awards. It is great to be able to showcase the talents of our builders and honor them for all they do and the beautiful homes and offices they build in our community. Their work is exceptional and should make us all proud to be in association with them.
Wayne Keffer CGR, CAPS
5 Great Reasons to Buy or Remodel 1. LOW INTEREST RATES Mortgage rates are not expected to remain low. Buying or refinancing now can reduce monthly payments substantially.
2. GREAT PRICES Housing affordability is the best it’s been in years. As the supply and demand in our housing market comes back into balance, prices will begin to rise again.
3. OUR HOUSING MARKET IS IMPROVING Don’t see your dream home on the market? Call one of our professional custom home builders — they can make your dream a reality.
4. ENERGY EFFICIENCY Today’s new homes are designed to save you money on your monthly utility bills, and increasingly incorporate exciting new green technologies.
5. PROFESSIONAL BUILDERS, REMODELERS & LENDERS The Home Builders Association of Kitsap County has hundreds of member companies to guide you through any housing questions you have. Visit our website at www.kitsaphba.com or call us at 360-479-5778.
In the past month, the HBA membership has interviewed many candidates. As I write this, the leadership has decided CGP to endorse some candidates and is waiting on endorsement Executive decisions for others. Watch your Vice President E News for updates as the primary and general elections near but here are the current endorsements:
• Kitsap County Superior Court: Jennifer Forbes, Kevin Hull, and Steve Dixon • 23rd Legislative District: Senator Christine Rolfes (D) • 35th Legislative District: Dan Griffey (R) • 26th Legislative District: Representative Jan Angel (R) • 26th Legislative District: Doug Richards (R) • Attorney General: Reagan Dunn (R) • Lt. Governor: The leadership believes that both Brad Owen (incumbent D) and Bill Finkbeiner (R), are highly qualified for this position. You are encouraged to vote for either in the primary. • Governor: Rob McKenna (R) • 6th Congressional District: Derek Kilmer (D) Recently the HBA was able to give back almost $300,000 to our members that participated in the ROII program. One builder received $20,000 back. This is a great program for members that qualify. Qualification includes several steps, but one piece is that you have workers you classify in categories that are in our ROII program. If your business has any construction type classifications, you may qualify (roofers, cabinet installers, flooring installers, framers, general contractors, etc.). Because of the state’s monopoly on worker’s compensation insurance, the system is very inefficient. As a result, many construction companies pay too much each year to Labor and Industries. The only way you can get any of that money back is by participating in a risk pool like our ROII program. To learn more, and find out if you might benefit from participation, please call me. You do not need to be a member to get more information, but you do need to be a member to join ROII and to receive any future payouts from the program. Be sure you’re taking advantage of all your membership benefits and the list of benefits is long. For many of our Associate members, it is important that you have opportunities to interact with other Associates as well as Builders. We offer many opportunities to do this, from committee meetings to Builder Breakfasts, to more formal events like our Builders Best Awards. In any given 6 week period we have an event to fit every interest and every budget. Twice a year we are holding a Simply Social event and you are encouraged to attend. The next one is coming up in September. Watch the E-News and this newsletter for the details. We encourage all our members to participate as often as they can, in all the variety of ways we make available. If you have any questions about your membership, please call me. I would be happy to help you maximize your investment.
July 2012 Edition
Government Affairs Committee
A Busy Election Year
The Government Affairs Committee (GAC) has been incredibly busy the last few Robert Baglio months interviewing candidates The BJC Group for the various political races 2012 Chair that are being contested. The GAC has interviewed no less than 20 candidates to date and we still have a few more interviews scheduled. The interviews so far have included candidates for Kitsap County Superior Court Judge positions, State Representative (23rd, 26th, 35th Legislative Districts), Lieutenant Governor, and 1st Congressional District. One thing is for sure, we have no shortage of candidates. Below is a partial list of the various positions open for election this year in which citizens of Kitsap County will be able to cast their vote include: County Races • Kitsap County Superior Court Judicial races • County Commissioner race — District 1 (North) and District 2 (South) State Races • State Representatives • 23rd Legislative District Positions 1 and 2 • 35th Legislative Districts Positions 1 and 2 • 26th District Position 2 • State Senator Position in the 23rd District • Lieutenant Governor position • The Governor National Races • 6th Congressional District • President of the United States It has been interesting, informative, and revealing meeting the various candidates, asking them questions about important issues and receiving their feedback. Our questions have mainly focused on issues affecting the construction industry. We have asked what the candidates believe is the best way to turn the economy around, how they view the regulatory climate in the State, their views on the Growth Management Act and whether they would support changes for more local control (especially important to Kitsap County as we currently are going through the remand of our Comprehensive Plan). We have received some interesting comments and answers. As we have conducted these interviews we have spoken to both incumbents as well as challengers. Obviously, the challengers talk about the need for change. The changes that are necessary to stimulate the economy and get people back to work, and to get our financial house in order. The interesting observation that I have made regarding many, but not all of the
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incumbents, is that they seem to fail to acknowledge the increase in State regulations, taxes, and fees that has occurred on their watch and the impacts these issues have on our State’s economy and business environment. Many of them instead want to focus on education. Though education is important, education alone does not create jobs. To create jobs we need a friendly business environment. It is going to be an interesting year. As a voter it is our responsibility to become educated on the issues, and learn about the candidates and where they stand on key issues that we feel are important. We must be informed. The decisions we make in this next election will have an enormous impact on where we go as a County, a State, and a Nation. Do we turn the economy around? Do we put people back to work or do we continue to get bogged down in the quagmire of uncertainty, over regulation, lack of fiscal discipline, and a government that does not seem to be pro-business? There is a lot at stake. Get informed and cast an educated vote. The primary is in August. NOTE: To register to vote: www.sos.wa.gov/myvote or visit the Kitsap County Auditor’s Office, or any public library Last Day to Register to vote in time for the August Primary: July 9th Primary Election: August 7th Last Day to Register in time for November General Election: October 8th General Election: November 6th
Got Health Insurance? Did your company recently lose its health benefits? Small or large, are you curious how the HBA’s insurance option stacks up against your current carrier? Have you checked into the HBA health insurance plan recently? Please call the HBA for an application. You do not need to be a current member to get a health insurance quote.
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July 2012 Edition
Welcome New Members New Members Wells Fargo Home Mortgage Shawnee Spencer 3212 NW Byron St., Ste. 106 Silverdale, WA 98383 360-698-1771 FAX: 866-671-5519 Shawnee.email@example.com
Thank You Renewing Members 30 Years Arness Inc Better Than Average Builders
Ullrich Contracting Inc. All Trades Mechanical Inc. John S. Trapp Construction
20 Years or More Grandy Marble & Tile Inc. (23) Kitsap Plumbers Group Inc. 15 Years or More Cook Construction Inc. (19) Eklund Electric Inc. Mentor Company Four Aces Drywall Inc. Tim Ryan Construction Inc.
2 Years or More Creative Countertops Inc. (9) Ed Heuss Company (9) Hudson Residential Construction LLC (9) Inspection & Permit Services Rodgers Landscaping Absolute Concrete Works LLC Puget Sound Energy N L Olson & Associates Inc. The Legacy Group
10 Years or More Eagle Home Mortgage Newton Construction Inc.
FIRST YEAR ANNIVERSARY Goller Grade & Gravel LLC The Cadwell Group/Silverdale Realty
REMODELERS! — Residential or Commercial — BIG or Small Kitsap HBA Remodelers Council Remodeling Excellence Awards IMPORTANT DATE: Entry Deadline is SEPTEMBER 21, 5pm Basic Requirements: • Must be an HBA member • Must be a member of the Remodelers Council ($40). • Entries must have been completed within the last 14 months. • Full payment is required at time of submittal • Strict adherence to the photo limit is required. These annual awards are prestigious and coveted. Packets will be available in July and all HBA members in the remodeling field are encouraged to participate. Details on the presentation of awards will come later. GOOD luck every one!
October 5, 6 & 7 Peninsula Home and Remodel Expo! This three day event is Friday, Saturday, and Sunday, October 5, 6 & 7. Returning vendors should have received their packets to secure their returning spot. If you didn’t see yours, please call the HBA. 360-479-5778. New vendors are encouraged to call the HBA to get on the list to receive booth registration information. Been registering at other shows in the region? Tired of having the dates changed each year? Sign up for the Peninsula Home and Remodel Expo—professional show management, always the 1st weekend of October, high quality local leads and customers! Please call the HBA (360) 479-5778 to have your name added to the mailing list. Space is always limited, so don’t delay! We keep booth spaces affordable and admission tickets low. This combination makes our fall event, the best investment for you! Have questions? Please call our experienced and excellent Expo staff at 360-479-5778.
HBA Builders Classic — July 13, 2012 Fees: • $120 per player ($480 foursome) • Register Today! Registration includes: • 18 holes of golf w/ cart(s), • 2 free drink coupons per player (for use on the course only), • Fun All Over the Course • Player Packs • Door Prizes • Dinner & Tournament Awards. BE A SPONSOR! Sponsorships range from $50 to $500. Sponsoring gets your company’s name in front of the HBA members, friends, and guests.
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!” 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
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OPG moves ahead with Port Gamble development plans By Rodika Tollefson Olympic Property Group will be submitting its plans for developing Port Gamble by the end of the year. The company hosted a public meeting at the end of June to share the plans with the public and solicit feedback. Pope Resources, parent company of OPG, announced in 2007 its plant to divest itself of major land holdings in the Port Gamble area, including 7,000 acres of forestland it has owned for about 160 years. As part of that plan, the company proposed to preserve about 85 percent of the land as open space in exchange for increased residential density in the Port Gamble area. The plan was opposed by the S’Klallam Tribe and environmental groups and later abandoned. Last year, OPG entered into an 18month option agreement with Cascade Land Conservancy (which has since changed its name to Forterra) to preserve the 7,000 acres of open space by finding funds for acquisition, expected to cost tens of millions of dollars. The option agreement for the land is independent of OPG’s plans to move ahead with the development of Port Gamble. Company president Jon Rose said when
OPG bought Port Gamble 10 years ago, it was with the expectation that it would be eventually developed. The company has been subsidizing the town to the tune of $250,000 per year, he said. “We’ve never submitted a formal master plan for approval,” he said. Port Gamble was formerly a mill town owned by Pope & Talbot, which has since gone into bankruptcy. The mill closed in 1995. Rose noted that when Olympic Property Group took over, the town was in bad shape and had a big number of abandoned buildings. A revitalization process included renovation of about 50 buildings, the recruitment of small businesses and the development of a yearround calendar of events to attract visitors. About 130 people now work in town. “We’ve earned our right to submit this master plan and expect that Port Gamble can be developed and not subsidized,” Rose said. The plans are conceptual and include two versions. Either one would use existing zoning. About 300 homes would be built in the 120-acre rural residential zoning (that has a density of 2.5 dwelling units per acre. The commercial zone would be infilled. The community would have access to
“We’ve earned our right to submit this master plan and expect that Port Gamble can be developed and not subsidized.” — Jon Rose, President Olympic Property Group
live theater, a historic farm, dock, oldgrowth forest and wetlands, Rose said. Under the plan, existing homes would be sold and the town’s historic character would be preserved, including its New England village feel. Port Gamble is on the National Historic Register and Rose said developing would be done in such as way so it doesn’t jeopardize that. Plan A calls for residential use in most areas above the water, and the former mill site (about 26 acres below the General Store) would have mixed use including a
hotel, marine industry, waterfront retail and nearly 90 homes. Plan B treats the mill site differently. “It is the most valuable and interesting property for development in Kitsap — and it’s flat, mostly paved and ready for development,” Rose said. OPG has also been working with Department of Ecology on environmental cleanup of the water that was polluted by the mill operations. The cost of the cleanup was originally to be shared by DOE, OPG and Pope & Talbot but since the Pope & Talbot bankruptcy in 2007, there have been many discussed about how the remaining costs should be shared by Ecology and Olympic Property Group. OPG’s expectation is to prepare consultant reports and other documents by the end of the year for submitting to Kitsap County. The county’s review process could take about two years. Development would likely be a 10-year process, Rose said. For more information about the development plans, visit www.popenorthkitsap.com and to learn about the effort to preserve the 7,000-acre open space, go to www.itsyourbackyard.com.
Silverdale’s newest neighborhood taking shape
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Tim Ryan Construction completes administrative office building for Harrison Medical Center in E. Bremerton Tim Ryan Construction, Inc. of Poulsbo completed their contract for engineering services and construction work for Harrison Medical Center’s new administrative offices and warehouse in East Bremerton. The project included renovation of an existing retail building to create 27,700 square feet of office space as well as 14,000 square feet of medical warehouse space. The project will consolidate Harrison’s administrative functions into one larger facility and provide warehouse space to support Harrison’s various medical facilities. Tim Ryan Construction is a commercial general contractor that specializes in medical and professional office buildings, retail and tenant improvements. For more information, contact Dan Ryan at (360) 779-7667, or visit www.TimRyanConstruction.com for current project photos and information.
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July 2012 Kitsap Peninsula Business Journal • KPBJ.com 23
Land preparation has been completed and home pre-sales activity has begun on the first 40 of 151 lots at Sterling Hills Estates, Silverdale’s newest development. The lots are in a rural setting and have no homes built directly behind them, and many of the home sites offer views of green belts and a meandering creek. The process has begun to certify these meadows as a Community Wildlife Habitat with the National Wildlife Federation. The project encompasses a total of 76 acres, of which 40 acres will be set aside as undisturbed open space for native flowers, plants and trees, ideal for birds and other wildlife habitat. This eco-friendly, low-impact development will have access to 2 miles of private walking trails, and four parks with playgrounds. The development is located between Anderson Hill and Apex roads, and is just minutes from Silverdale’s schools, services, shopping, the Bremerton ferry, Bangor sub base, and other amenities. There are nine energy-efficient craftsman-style homes available in Sterling Hills Estates, utilizing green building materials and techniques; the homes will start at $269,000. Construction of homes has begun and real estate agents are available to show samples of a variety of finishes and home styles, and tour the neighborhood lots with prospective homebuyers. Lot reservations and home orders are being accepted and model homes are scheduled to be finished in mid-July. For more information, contact development supervisor Scott Delhaute at firstname.lastname@example.org or 360-340-6220, see the website www.sterlinghillsestates.net, or call Realtors Karin Ahlman and Garry Wanner at 360-698-8154.
Work continues on Myhre’s renovation a year after fire The Myhre’s restaurant building that’s been empty since it was extensively damaged in a fire a year ago is getting a makeover. John Lora and Mindy Oliver, owners of the restaurant/bar that’s long been a Bay Street landmark in Port Orchard, have submitted a plan for rebuilding the second floor and converting the space into five apartments. The owners have avoided media requests for interviews and not commented publicly on the building restoration or a
target date for the restaurant’s reopening. The renovation plan submitted to the city will have to go before the design review board because the building’s facade will be significantly changed. No date has been set for a design review board hearing, and it could be a month or more before the city would approve a construction permit for the entire project. In the meantime, construction crews are rebuilding the walls and roof on the second floor, which used to be the bar area. Workers are rebuilding the second-floor walls and roof at the Myhre’s restaurant building in downtown Port Orchard. Tim Kelly photo
Buying Strategically With a VA Home Loan I don’t have to tell you that homeownership is mathematically more beneficial than renting. You already knew that. However, I will tell you the biggest obstacle in front of military families using their VA benefit to purchase a home. It’s a fear of being transferred from their current duty station, as well as what they will do with the home if they leave. But it doesn’t have to be this way. There are ways to strategically use your VA home benefit despite the uncertainty inherent in military life. It just takes a little planning.
Buy With Resale Value in Mind The most popular price point in today’s market is between $165,000 and $225,000. Homes in this range tend to get bought quickly by first-time home buyers. The home you buy should have at least three bedrooms, two bathrooms and 1,500 square feet. Add in a decent yard, two-car garage and proximity to a military base, and your home will have a great chance of selling quickly at a favorable price if you get stationed elsewhere.
24 • Kitsap Peninsula Business Journal • KPBJ.com July 2012
Use Rental Income to Your Advantage Your VA entitlement allows you to purchase up to a 4-plex, owner-occupied. Live in one unit, and rent the other three out — offsetting the cost of your mortgage. In addition, Kitsap County has a strong rental presence, due to the amount of Department of Defense employees and military personnel that live in the area. For example, if you purchase an owner-occupied 4-plex that cost $300,000, after taxes and insurance, your payment would be around $1,900 (4.199% APR Rates are subject to change). If you rent each unit for approximately $1,000 per month, you could live mortgage payment free and save the balance for a vacancy fund — or pay down the principal on your loan. If you get deployed or stationed elsewhere, your unit could easily become a rental unit, as well. As long as you have credit remaining in your entitlement, you can use your VA loan eligibility again if you are moved on orders.
BAH Benefits BAH should stand for “By-a-house.” Using your non-taxable housing allowance in the form of purchasing a home could be very beneficial over time. Not only is your allowance not taxed, but you can also deduct a majority of the interest you pay on your home from your taxes. This saves additional hard-earned money in taxes every year. As always, if you have any questions during the home loan process, The Legacy Group in Silverdale is here to help. We’re a respected local lending team with deep roots in the Kitsap community. Contact us to learn even more about stress-free home loans done the old-fashioned way — with trust.
HBA hosts first Builders Best Awards ceremony
Armstrong Homes of Bremerton 4) Custom Home $500-$800k — Kitsap Trident Homes Inc. 5)Built Green® Home — Cedar Bay Homes
The Home Builders Association of Kitsap County hosted the inaugural Builders Best Awards ceremony June 20 at the Oxford Suites in Silverdale. The awards program, which recognized seven HBA Builder members, was designed to provide peer-validated recognition for high-quality construction. All submissions for award categories were reviewed and voted on by a panel of past HBA presidents. Each entry was provided to the judges without any company identifying information so the judges were “blind” as to whom the corresponding builders Winners of HBA’s first Builders Best Awards hold their were. The winners in the various trophies at the ceremony. categories were: 1) Multi-Family Home — 6) Judges’ Choice Best Value — Cook Bremerton Housing Authority Construction Inc. 2) Speculative Home Under $300k with 7) Custom Home above $800k — land — Cook Construction Inc. Kitsap Trident Homes Inc. 3) Custom Home $300k-$499k —
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Financial adviser partners invest in new business Kingston Financial Center will open in building on former lumber yard site
This building on the old Kingston Lumber site has been sold to a pair of financial advisers who plan to open a business called Kingston Financial Center, which will lease office space to other professionals. Tim Kelly photo
July 2012 Kitsap Peninsula Business Journal â€˘ KPBJ.com 25
By Tim Kelly, Editor Two guys who make a living advising other people on investment planning are making a business investment themselves. Bim Prince and Clint Boxman are buying part of the old Kingston Lumber property, with plans to move their office and rent space to other professionals in the yellow building on the east side of the site along State Route 104. Prince said that when their purchase of the property closes, it will take a few weeks to remodel the interior of the building that will become the Kingston Financial Center. "With any luck we'll be in there by the end of July, maybe," Prince said. He and Boxman had worked 14 and seven years, respectively, as financial advisers with Edward Jones, but they left that firm in late May to go to work for Morgan Stanley. They will continue in that capacity when they open the Kingston Financial Center. "We'll own the building, but we work for Morgan Stanley," Prince said, adding that the company backs their business plan. "They loved our idea of opening a financial center to serve lots of different needs of different investors." No butcher, baker or candlestick maker, but the new center will include a tax service, insurance agency and law office along with the Morgan Stanley duo. "We could've asked Starbucks to come into the building," Prince said, "but we wanted to set the thing up to handle all the financial needs of people in the neighborhood." And the soon-to-be landlords hope to make their new surroundings more neighborly. They plan to take out a fence between their office building and the adjacent retail area anchored by a Thriftway grocery store, as well as tearing down a smaller structure on the back of their property. That will open up access for pedestrians and vehicles through the north side of the former lumber yard. "Eventually you'll be able go from the post office down the access ramp on the back of our building and be able to come out on Lindvog Road," Prince said. The main building on the larger part of the property vacated by Kingston Lumber â€” which moved to a location further south on Bond Road â€” remains for sale. "I hope there might be another community business, a restaurant or something, go in there," Prince said. "It'll certainly change the pedestrian and traffic flow in the neighborhood." The building the financial advisers are buying will retain some of its lumber yard character. "It's kind of post and beam construction, with a wide open feel and there's a great staircase through the middle of it," Prince said. "And we'll have a nice big conference
room that community groups can use." He and Boxman have been working for about a year on their plan to go into business operating a financial center, and they've had commitments for some time from the professionals who will be tenants. Also, Prince said, the support they've gotten from Morgan Stanley has been a key to achieving their goal. "They give us a lot of flexibility to run our business the way we see fit," he said. "We have some pretty strong ideas on what it takes to make our investors happy, comfortable and successful."
Superstars are coached, so why aren’t you?
Now Accepting Online Nominations! We are now accepting nominations for the Kitsap Peninsula Business Journal’s annual 40 Under Forty leadership recognition program!
26 • Kitsap Peninsula Business Journal • KPBJ.com July 2012
Do you know someone outstanding in their industry or profession who is deserving of recognition? Help us highlight the best and brightest young business leaders on the Kitsap Peninsula. Individuals must be under the age of 40 on Sept. 15, 2012 for consideration. C O R P O R A T E
S P O N S O R S
Submit your nomination online today
www.kpbj.com Nomination deadline August 5th, 2012
By Dan Weedin In June, I watched two celebrated sporting events — the French Open in professional tennis, and the U.S. Open in men’s professional golf. These two sports feature great individual athletic prowess. They also illustrate what is widely acknowledged and accepted in all sports, arts and entertainment. Superstars are well coached. At the French Open, champions Rafael Nadal and Maria Sharapova receive constant coaching and support from their coaches. At every break in play and regularly from the sidelines, they get suggestions on how to improve both tactically and strategically. At the U.S. Open, every golfer from champion Webb Simpson to Tiger Woods, and to the amateurs competing, receive input from swing coaches, mental coaches, putting coaches and caddies. Regardless of the sport, athletes simply can’t maximize their skill and ability without strong coaching. The same is abundantly true in business. Executives and business owners who accept coaching are more likely to be “superstars” than those who don’t. But unlike sports, where all athletes understand the value, most business owners eschew the concept of coaching. The question is … why? Why You Say No I’ve worked closely with small business owners for over 25 years. In my experience, there are five key reasons that business leaders don’t take advantage of coaching: 1. No concept of value. Coaching is viewed as a cost, rather than an investment. The owner only thinks about what they are losing (money) rather than the value they will receive (more discretionary time, enhanced skills, ability to earn higher revenue more quickly, and a sounding board for frustrations). 2. Arrogance. “I’ve been in this business all my life. I know what I’m doing!” That’s exactly why you need coaching. This myopic view leads to the downfall of many because they don’t have a firm understanding of the traps and opportunities around them. 3. Ignorance. You don’t know coaching even exists. You think you have to traverse the world of business as a self-made (or selfdestroyed) man or woman. 4. You’re not broken. It is a fallacy to think that only those that are broken need coaching. Actually, “coaching” is for those who are already really good, and want to maximize their talent. If this excuse were real, athletes like Lance Armstrong, Tiger Woods, and Serena Williams would all be walking around “coach-less!” In fact, Los Angeles Lakers superstar Kobe Bryant hires
five new coaches every summer to find out what he doesn’t know, or new ways to improve what he does know. 5. Lack of vulnerability. Owners can be reticent to open up and let someone else hear that they want/need help. They feel that they will appear weak. In fact, the business leaders who are vulnerable and allow themselves to be coached demonstrate tremendous self-confidence. The Value There is a myth that a coach must be superior in tale----nt to the person being coached. Last time I checked, Tiger Woods has won more major golf championships than all his coaches combined! The truth is that athletes have the talent. Coaches have the innate ability to transfer their knowledge to maximize the talent, and take them to heights they could never reach on their own. Consider this — we are all able to stretch on our own before or after exercise. But, our own bodies limit us. If a trainer or therapist stretches you, they are able to use leverage to maximize the stretch and attain optimal results. That’s how it works with coaching. Reason #1 above was no concept of value. Here is a list of values I’ve heard from business leaders who have been coached, and from personal experience: • Improved ability to prioritize results in more discretionary time for you. • Reduced stress through better communications with management and employees. • Enhanced ability to communicate leads to more sales and improved bottom line. • Improved ability to lead, respond, and accept changes and volatility in business. • A sounding board. The last place you want to bring your challenges is home! • Improved efficiency at your own job. Coaching can take the form of many areas that small and medium-size business owners can improve on. For example — improved speaking skills; better time management; enhancing life balance; strengthened leadership skills; and focus on specific goals, outcomes or projects. Coaching sessions can last for a month or a year. It can take the form of accessing a coach’s ”smarts” on a retainer basis. However it ends up looking, good coaching will improve the condition of the “player.” That “player” is you! • Dan Weedin is a Poulsbo-based management consultant, speaker, and mentor. He leads an executive peer-to-peer group in Kitsap County where he helps executives improve personally, professionally, and organizationally by enhancing leadership skills. He is one of only 35 consultants in the world to be accredited as an Alan Weiss Master Mentor. You can reach Dan at 360697-1058; e-mail at email@example.com or visit his web site at www.DanWeedin.com.
Kingston businesses want SoundRunner to keep running By Tim Kelly, Editor The SoundRunner passenger ferry service to Seattle operated by the Port of Kingston may be on life support, but some North Kitsap business owners are doing all they can to keep the ferry from flatlining. One of SoundRunner’s biggest boosters is Kingston Outdoor Adventures owner Beth Brewster. She signed a sponsorship deal for June, so all month crew members on the boat wore bright T-shirts from Kingston Outdoor Adventures, and one of the stand-up paddleboards from Brewster’s recreation rental business has been displayed on the ferry. “It’s great advertising and visibility for our business,” Brewster said. “We realize how important SoundRunner is for businesses and the local community,” she added. “It’s our only real direct link to downtown Seattle.” That link is tenuous, though. Back in April, the port commissioners voted 2-1 to use about $300,000 of reserve funds to keep SoundRunner operating through the end of September, rather than shutting the service down. At the time of the vote, most of the $200,000 in funding the port had allocated for 2012 operating expenses had been spent. A significant increase in ridership is needed for SoundRunner to remain viable,
Photo courtesy Beth Brewster
A paddleboard from Kingston Outdoor Adventures is displayed on the SoundRunner passenger ferry by crew members wearing T-shirts from the sponsoring business. but the Port hopes to accomplish that through expanded marketing campaigns and applying for state and federal transportation grants. Eventually, the Port wants “to pass (SoundRunner) on to a larger ferry district, once it gets established,” Commissioner Walt Elliott said when he gave a presentation on ferry marketing efforts at a
recent Kingston Chamber of Commerce lunch. Linda Fyfe, the chamber’s former executive director who now works as a marketing specialist for SoundRunner, said that the community response has been encouraging. “We’ve received a tremendous amount of support from the business community,”
Recycle Earth partners, left to right: John Sehmel, Nathan Gray, Eric Miller and David Degarimore. Submitted photo
She said until recently, before a new business started using the same dumpster, Spiro’s got by with the smallest size available. Even the takeout containers are compostable. “Composting was huge when they added it. … We wanted to do it because it was good for the environment and it was important to us. I thought it was going to be a hassle but it’s been very easy, and we’ve incorporated it into our daily operations,” she said. “It’s a little less expensive to recycle and (saving money) wasn’t our objective, but Recycle Earth really worked with us to make sure it’s affordable.” The compostable materials go to EMU Topsoil and Composting in Poulsbo. Degarimore said it’s more expensive to keep them in county but they decided to
make the move after a request from a county commissioner. The comingled materials end up at the Port of Tacoma because there’s no local processor, and the partners’ ultimate vision is to create that type of facility so Kitsap recyclers don’t have to make the drive. The idea would take a lot more volume as a well as a sizeable investment, but they see it as a major
SoundRunner, page 36
advantage to many stakeholders in Kitsap, including the county government itself. Gray said the company has grown more than 400 percent in a two-year span, and he recalls with a smile how the partners had to drive around and pick up everything manually during the early days. “It was hard work but we were pretty lighthearted,” he said. As the business grew organically, they invested into automated pickup equipment — but some days, things can still get financially challenging if the trucks need major repairs, since they continue to grow without borrowing money. The company has already achieved many milestones and exceeded several goals, and one short-term goal is to become as efficient as possible internally. “The goal would be by the end of the year to have some new things in place,” like equipment, Gray said. “Our goal is to do it organically and continue to evolve with the industry.”
July 2012 Kitsap Peninsula Business Journal • KPBJ.com 27
from page 31 from medical offices and golf courses to restaurants, and the recycling services now include everything except mobile shredding and medical waste — customers can even recycle metal and get a check back for the value. Residential site cleanup is also available, and the crew tries to make sure anything in good condition gets reused via thrift stores or other avenues. What makes Recycle Earth (www.recycleearth.net) different from other commercial recyclers, according to Degarimore, is the focus on helping the businesses be more efficient. “We spend a lot of time and energy to educate people and to set up the new accounts,” he said. Often times, that means investing as much as $1,500 into custom recycling containers, customizing the pickup locations and offering various flexible options. “We’ll go to great lengths to help avoid putting things in the garbage,” Degarimore said. He gives Spiro’s Pizza in Port Orchard as an example. The company was one of their first customers, and he said they took a loss at first just to try and cultivate the relationship as well as use the pizzeria as a pilot of sorts for composting services. “We learned how to do it from them, and they learned how to do it with us,” Degarimore said. According to Wendy Lougheed, who owns Spiro’s with two siblings, the garbage output has been cut at least in half since Recycle Earth began offering composting.
she said. Marketing strategies include taking photos in front of local businesses with the owners or staff holding an “I Support Soundrunner” sign, and posting storefront “Ride It” posters with ferry schedule information. Businesses are also encouraged to offer special discounts to customers who present their SoundRunner tickets. Fyfe said they’re also providing information at park-and-ride lots around the region for Seattle-bound commuters, who may consider SoundRunner as an alternative to taking the state ferry from Bainbridge Island, or the state ferry from Kingston to Edmonds to connect with light rail service to Seattle. Soundrunner offers one morning and one late-afternoon 50minute trip each way between Kingston and Seattle on Monday through Saturday. Additionally, one-way fares were recently lowered from $7 to $5 so SoundRunner can accept ORCA regional transit passes used by many federal employees. Besides efforts to get more commuters on board, Brewster is into promoting all the fun destinations at both ends of the ferry run, not just drawing people over from the
28 • Kitsap Peninsula Business Journal • KPBJ.com July 2012
Issue of employees’ right to privacy has lots of gray areas By Julie Tappero When our employees walk through the door of the workplace, do they leave their right to privacy in the parking lot? Or is it a sacred right that they carry with them everywhere they go, even on the job? The answer to these questions is, “it depends.” As with so much employment law, employees’ rights to privacy are situational, governed by federal and/or state law, or from case law. Privacy rights creep into many situations, including examples covered in this article. Employees routinely use company email, telephones and mail for business purposes, and oftentimes for personal use as well. Does a business have the right to monitor an employee’s use of these communications? Under The Electronic Communications Privacy Act, a business may intercept voice mail, email or computer usage as long as it has prior consent from the employee. Best practices require that a business have employees sign a communications policy stating that consent is implied by the employees’ usage of these communication methods on the job and recognition that emails, voicemails and computers and their contents are the property of the company. The question regarding employee mail is slightly different. We’re all under the impression that it is a federal crime to open someone else’s mail. However, the Postal Service has determined that business mail has been properly delivered when it reaches the business, and at that point can be opened by any legitimate representative of the business. If the mail is determined to truly be personal, however, at the point it is opened, it should be delivered to the intended recipient, or a claim of “intrusion upon seclusion” could be made. This happens when an employee has a reasonable and legitimate expectation of privacy and the employer intrudes on it in a way that would be very offensive to a reasonable person. For instance, there was a recent case in Illinois where an employee had filed a
complaint of sexual harassment against her supervisor and subsequently left the company. After she left, her personal email account was accessed on her company computer, and emails between her and her attorney were read. She successfully sued for intrusion upon seclusion, even though she had utilized the company computer for her personal email while working there. A somewhat gray area is an employer’s ability to search an employee’s office, desk, locker or personal items such as briefcase or handbag. There aren’t any laws relating specifically to this area yet, but case law provides some guidance. The Supreme Court provided a little guidance, primarily for public employees, in O’Conner v. Ortega, indicating that on a case-by-case basis, employees might have some expectation of privacy in their personal items that they bring to work. To
protect themselves, employers should have specific policies stating what level of privacy an employee can expect for their personal space, such as their desk, office and locker, ensuring that the employer has the ability to protect the safety of all of its staff, and the security of the company as well. Oftentimes, as employers, we learn private information about our employees, and find ourselves caught between the need or desire to share information with others, and the duty to protect an employee’s right to privacy. For example, an employee’s father becomes very ill, causing them to miss work. How much information about the illness can you, and should you, share with their co-workers? Your good intentions to be supportive of an employee, and to inform the staff can land you in hot water under GINA, HIPAA, ADA and FMLA or general rights
Kitsap’s high unemployment spurs formation of job club OfficeXpats of Bainbridge Island is organizing a job club for unemployed Kitsap County residents. After attending a jobs workshop presented by career coach Elizabeth Atcheson at the Bainbridge Library and hearing that as many as 40 percent of unemployed Kitsap residents would have to relocate in order to secure work, Leigh Taylor decided to form a job club. Taylor is spearheading the club, with OfficeXpats owners Leslie Schneider and Jason Omens hosting the group. Time-tested jobhunting classics such as What Color is Your Parachute? claim job clubs have a success rate of almost 85 percent, a success rate more than 11 times higher than just sending out resumes. Job club members who are unemployed or underemployed get together weekly to network, hear speakers on various topics, connect with local employers, polish their resumes, hone their interviewing/speaking skills, support one another and share resources. Members must come prepared to network and participate fully, not simply gather information. The long-term under- and unemployed struggle with psychological issues, such as depression and low self-esteem. Being pro-active, acquiring new tools to improve your odds and put your best foot forward can help alleviate self-doubt and ensure success. Schneider explains, “the job club is a good fit for us, because so many other networking and learning opportunities are available to the jobseeker through OfficeXpats.” Bob Middlebrook of Sound Works Job Center in Poulsbo agrees that a job club could fill a critical need at this difficult economic time in Kitsap County. If demand warrants, a second group will be formed and meet at Sound Works. The CEOs (Creative Eternal Oprimists), as the club is called, will meet Tuesdays from 2-3:30 p.m. at OfficeXpats in the Pavilion on Bainbridge Island, though the start date is yet to be determined. The club will be limited to a maximum of 12 members. The cost will be $15 per month, per person, for an OfficeXpats Passport membership, giving participants access to the facility and business skills workshops. Anyone interested in the CEOs should contact Taylor at firstname.lastname@example.org for more information.
to privacy. You do have the right to share information when there is a justifiable business reason, but to the fullest extent possible, medical and health information must be kept confidential and left to the employee’s discretion to share. Oftentimes in our workplaces we develop casual relationships with our coworkers, which causes us to let our guard down. It’s good to have a reminder that private information is always protected and liability is on our shoulders. It’s not hard to find examples in the press. For instance, a lawsuit was just filed against Detroit’s well known morning disc jockey, Mojo in the Morning, who bantered on the radio with a cast member, Rob the Web Guy, about the possible reasons for Rob’s absence the day before. Rob’s subsequent lawsuit contends that his personal medical information was revealed to the public, violating HIPAA. It may have all happened in good fun, but it’s now up to the courts to decide the costs of those jokes. While our employees are at work, we have the right to utilize their work product, but do we have the right to utilize their likeness without their express permission? It appears that we don’t. You must get your employees’ permission if you plan to use their name or their likeness for commercial purposes for which your business will benefit. For example, a former employee of the trading card company, Topps, has filed a million-dollar lawsuit this year claiming the company put his picture on one of their cards without his permission, causing him, among other things, “public ridicule, degradation, humiliation, emotional distress.” Now let’s take this up a notch. How about the employers who want to track their employees’ every moment of the day by putting a GPS on their car and/or their smartphone? Is this legal? It appears to be so, if done within reason, and it is becoming a more and more common practice, particularly in some industries such as sales, trucking, utilities, transportation and law enforcement. There are some good business reasons that an employer might utilize this
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Right to privacy, page 37
Are you Certified yet? More and more customers are looking to the STARS...
Become an ENVIROSTARS certified businesses. Attract new customers Save on materials and resources Itâ€™s the right thing to do Certifying environmentally responsible businesses with a third party verification that people trust. IMPROVE practices, operate more efficiently, conserve resources, prevent pollution, protect your property and workers, reduce hazardous materials and waste in your business. From car repair to landscaping to veterinary clinics, we can help you be a more environmentally responsible business. FREE CONSULTATION, ASSISTANCE AND MARKETING MATERIALS! For eligibility criteria and to apply, go to www.envirostars.org. Contact your local EnviroStars representative for more information at www.envirostars.org/contact.aspx or call 1-800-220-STAR.
For more information on ENVIROSTARS, Call (360) 337-5604 or visit www.envirostars.org, and choose Kitsap County.
EnviroStars is a service of the Kitsap Public Health District.
July 2012 Kitsap Peninsula Business Journal â€˘ KPBJ.com 29
Good for Business. Good for the Environment. Good for You!
USGS beach study in Kitsap to correlate forage fish spawn habitat in local bays By Kathleen Byrne-Barrantes United States Geological Survey (USGS) scientists began their shoreline forage fish study in Kitsap County the weekend of June 9 with what might be a local resident’s all too common problem — boat trouble. These scientists access beaches by boat and work along the shoreline during both day and night periods wearing visually identifiable USGS clothing, and the boat clearly marked as a USGS research vessel. The USGS research boat, shown here, had its first Kitsap visit to a boat mechanic. But the crew made up for lost time picking up the pace and working at all hours, tides allowing, and work could continue through July 8. The crew — Theresa (Marty) Liedtke, the team’s fish biologist, with Colin Smith, Lisa Gee, Ryan Tomka and Dave Ayers — come from the USGS Western Fisheries Research Center of the Columbia River Research Laboratory in Cook.
The researchers are using “purse seine” nets to collect fish and plankton samples along shorelines — called beach seining — from Sinclair Inlet to Liberty Bay, Agate Pass to Madison Bay, beaches in Bainbridge Island, Manchester, Port Orchard and South Kitsap. Forage fish, also known as prey fish or bait fish, such as surf smelt and Pacific sand lance, lay their eggs on fine, sandy beaches found throughout Puget Sound. This study will evaluate the use of these nearshore habitats by forage fish in their early life stages, and their possible links to economically and ecologically important species such as orcas, salmon and sea birds. I first met the USGS crews back in 2007; including Liedtke, Gee, and Smith (see http://kpbj.com/headlines/2007-0409_usgs_correlate_urban_metrics_with_r educed_herring_spawn_in_liberty_bay) when they were sampling randomly selected beaches around Liberty Bay. Then they were collecting data on each beach’s
Photos by Dave Ayers with Kathleen Byrne-Barrantes
Members of the United States Geological Survey research crew (above) pull in a seine through eelgrass. At left, a sand lance is shown on a measuring device.
presence/absence of shoreline armoring, shade, material (sand, mud, cobble, gravel), presence of large woody debris, condition of uplands (roadway, landscaped yard, forested), and sources of freshwater, examining beach material samples to look for forage fish eggs. Scientists from all four USGS disciplines
— biology, geography, geology and water — contributed to that work that included monitoring wave action and water clarity (turbidity) in eelgrass beds, examining light levels, and measuring groundwater discharge to Liberty Bay and nearby waters to determine if (1) sand lance and surf Forage fish, page 32
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Legislators, environmental advocates tackle product stewardship issues By Rodika Tollefson Since the state of Washington implemented its E-Cycle program in 2009, about 78 million pounds (39,000 tons) of electronics has been recycled in the first two years. The program has been called a major success, and used by other states as an example of product
stewardship — the idea of shifting responsibility back to the manufacturers for the products’ end of life. The state is currently working out the logistics of how another product stewardship program, fluorescent light recycling, will be implemented, following the adoption of a bill by the Legislature in
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2010. And the conversation about product stewardship is only beginning — this past legislative session, several bills were introduced for other products, and are expected to come back to the table next year. When the fluorescent light program is launched statewide in 2013, Kitsap County consumers will likely see more collection points than currently available, according to Chris Piercy, recycling coordinator for the county. “The difference is in the back end — the county will not have to pay for managing it,” he said. That means the county could save around $17,500 per year, based on preliminary numbers. The county is a member of the Northwest Product Stewardship Council’s steering committee, and Piercy said the main idea behind these kinds of programs is to save taxpayers’ money from paying for expensive garbage disposal. Latex paint, for example, costs about $125,000 per year for the county to manage. “It’s pretty significant. One type of hazardous waste everybody seems to produce is leftover paint,” Piercy said. Paint is one of several products in
stewardship bills in this past legislative session. The others included carpet, pharmaceuticals and rechargeable batteries. Although none of the bills passed, the topics are expected to return. “There’s a sea change happening in our culture, looking at our responsibilities in managing end-of-life products,” said David Stitzhal, owner of Full Circle Environmental consulting firm and coordinator for Northwest Product Stewardship Council. “It’s a question not asked in the United States until recently and once it’s been asked, it opened quite a box of policy questions.” Several states have since pursued legislation for various products — California has carpet and mattress recycling programs while Oregon and Rhode Island do for paint, as some examples. Each of those products has its own challenges locally. The carpet recycling discussion is gaining momentum but there are no facilities in the state that can recycle the fibers. “We’d like to see the loop closed in Washington,” Stitzhal said,
Stewardship, page 31
from page 30
Recycle Earth aims to make businesses eco-friendly
noting that once the law was enacted in California, the free market jumped on it. “What’s exciting about carpet is the local economic development potential,” he said. Rechargeable batteries have made major headway because the industry has been proactive and already has a voluntary take-back program, he said, but pharmaceuticals are another story. “Th ere’s a huge pent-up demand and the goal is to get the pharmaceutical companies to pay for the take-back system,” he said. “Everybody’s on board with it except for the industry.” State Sen. Christine Rolfes (Dist. 23), said some of the proposals didn’t get far because it was the first time they were introduced this year and sometimes it takes several years for all the discussions to take place. When the pai nt take-back proposal was discussed, she said lawmakers looked at the new program in Oregon, but there were a lot of questions on how much paint was really diverted from the landfill, and how a program would be administered. “The retailers were missing from the discussion. Part of my objective is to get retailers, especially small ones, to participate in it,” she said. While she thinks the topic of pharmaceu ticals will remain hot, in her opinion it would take a lot of push from consumers to see any progress. “That’s the one that would require strong consumer support — the votes are tight because the industry has no interest in taking back the product,” she said. “It’s a closed system so it’s fair to ask them to pay for it.” The problem, however, is expected to grow. According to a 2007 Kaiser Family Foundation study, Americans purchased 71 percent more prescriptions in 2005 than they did in 1994. Whether flushed down or tossed into garbage, the drugs are believed to have a long-term harmful effect on humans and animals as they eventually make their way into drinking water and scientists are finding more and more of the chemicals in water samples. Some countries, including Japan and France, have implemented measur es requiring stewardship on the part of the pharmaceutical companies. Stitzhal believes that as more European and Asian countries tackle the issue — for any products — companies doing business in the U.S. will also feel more pressure. “I do see a shift in our culture toward an understanding that responsibility for end-of-life product should fall on the manufacturers and consumers and not the taxpayers,” he s aid. “With the recession in place, we’re asking a lot more questions about what government should do and not do. … It will change how people vote in the Legislature if their constituents are calling them. But we can’t do it without manufacturers — we need regulations in place, then we need to get out of the way so the free market can innovate.”
By Rodika Tollefson As the owner of a construction company, Nathan Gray saw how much waste could be diverted from the landfill — as much as 70 percent of materials could have been recycled, he said. Longtime friend David Degarimore, owner of Kitsap Sports, felt the same way, that his businesses could do a better job recycling. The two long-time friends not only run their individual businesses (Gray’s company is called Cascade Specialties), the pair are also partners in a business they
hope can be a catalyst for helping fellow entrepreneurs become more environmentally friendly. Called Recycle Earth, the company has a third partner, John Sehmel, who runs his own business additionally as well, a flooring company called DS Sales Associates. (A fourth partner who founded the business, Eric Miller, decreased his role as his own business, Miller Chiropractic, took off.) “At the time we started, single-stream commercial recycling wasn’t available (in the county),” Degarimore said. “It certainly
was a need in my business—commercial garbage is extremely expensive and I felt we were throwing money away. Plus, as business owners we know it’s the right thing to do.” Since its inception in January 2008, their company, Recycle Earth, has been evolving to offer a broader array of services. The partners have been investing profits back into the business so they don’t have to borrow money to finance their growth. The company’s customer base ranges Recycle Earth, page 27
July 2012 Kitsap Peninsula Business Journal • KPBJ.com 31
Brighter days, savings for businesses that upgrade to LEDs By Tim Kelly, Editor That familiar thought bubble with a light bulb in it, long used to illustrate someone having a bright idea, probably needs to be updated. To reflect current trends, the iconic incandescent bulb should be replaced with an LED bulb. Many Bainbridge Island businesses have done just that by taking advantage of a Puget Sound Energy program, and they are reaping significant savings on their electric bills.
PSE offers a rebate program that allows participating businesses to buy LED (lightemitting diode) bulbs at steeply discounted prices, and to get certain kinds of bulbs free. North Coast Electric of Seattle, under a contractual arrangement with PSE, has done a lot of the lighting upgrades, providing the LED bulbs to the businesses and collecting the rebate. "We count how many fixtures they have, ... and list how many and what type of bulbs they need on the (rebate) form," explained
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John Brubeck, an energy efficiency specialist for North Coast Electric. The business then pays the discounted price for the LED bulbs, which use far fewer watts to provide the same amount of light as the conventional bulbs — incandescents or
compact fluorescents — that are replaced. Basic LED bulbs called "A lamps" are free, and the other available bulbs cost the business $1 to $15 apiece. "They are hugely discounted," Brubeck LED, page 33
where their habitat is. Then, to test their theories, they will also compare habitats with eelgrass to those that have none to determine preference and challenges to survival. Because, if young forage fish can hide in eelgrass beds or shaded areas, they may be less likely to be picked off by predators. Liedtke said that they will also test fish tissues using carbon isotopes because those that have been raised up in eelgrass have a unique carbon signature compared with species found in areas without. “With that kind of information, we can put our restoration dollars to work on the right habitat improvements … and try to preserve what we’ve got left,” Liedtke added. The whole USGS crew said they are finding landowners extremely positive and supportive, adding that lessons are going both ways as old-timers share rich histories and chronicles of the past while these scientists teach landowners the value of forage fish in the food chain. More project information is located at http://puget.usgs.gov/. Questions or concerns can be directed to Theresa Liedtke at email@example.com or 509-5382299, ext. 270. Visit USGS.gov or follow them on Twitter @USGS and our other social media channels, or subscribe to their news releases via e-mail, RSS or Twitter.
from page 30 smelt spawning is associated with groundwater discharge rates to intertidal beaches; (2) eelgrass growth is associated with groundwater discharge rates to subtidal areas; and (3) it’s affected by the overall contribution of groundwater to Liberty Bay. They then developed models to look at various beach conditions in order to understand what variables were most linked with beach spawning, and help land planners to protect those aspects. Now, five years later, they continue to sample other locations to make the model more robust. On June 18 they counted over 2,000 sand lance near Agate Pass and Keyport. “And that was actually less than in May,” said Liedtke, “which indicates that they’ve either moved offshore as they’ve matured or been victim to predators — like shore birds that investigators have proved consume one-third of all forage fish.” While young, they’re not very strong swimmers and measure just 30 mm in length when they leave the “nearshore nursery” to move off into deeper waters. The question posed by these scientists is, where do they go? So, Liedtke said the team is using deeper seines to capture more mature sand lance in order to determine
decreased after the upgrade to even more energy-efficient LED lighting. "I actually saw it immediately," Bryant said. "Our bill used to average $200 a month, and now it's down to about $125 to $135." "There is an initial investment," she added, "but if I'm saving $75 a month it doesn't take long to make that up."
from page 32 said, so the payback period for the initial investment is short. "If a business operates 365 days a year, for 12 hours a day, paying 7 to 8 cents per kilowatt hour," he said, "every reduction of 40 watts is going to mean about $1 per lamp per month off their electric bill. "The payback is really really quick." He said the Northwest Design Center in Poulsbo recently bought more than 500 bulbs, replacing 65-watt halogen lamps with 9-watt LEDs. "So they're going to see more than $1 per lamp savings each month," Brubeck said. Here's a sampling of other businesses that have been pleased with the results of their lighting upgrades:
Dana's Showhouse and Furnish Bainbridge It's not just the light, it's the temperature change that Terri Bryant noticed after the track lighting at Dana's Showhouse was refitted with LED bulbs. The home furnishings business she and partner Mary Terry own is in an older building with no air conditioning, and the old bulbs they used would create a noticeable amount of heat in the lowceilinged space. "I've noticed we're never overheated in here" with the LED lights, Bryant said. "In previous years we had six fans going and all the windows open. This year there's a significant difference."
Tim Kelly photo
Energy-efficient LED spotlights illuminate displays of artwork at The Gallery in dowtown Bainbridge Island. And on a recent warm day no fans were needed to keep the temperature tolerable in the store. Bryant and Terry also did an LED upgrade at Furnish Bainbridge, a design center they opened several months ago in a building a block up from Dana's on Winslow Way. Dana's Showhouse was one of the first businesses to participate in PSE's lighting upgrade program. Bryant said the LED replacements are spotlights that illuminate the store in a different way from the compact fluorescent floodlights they had in their track lighting. "The light is very directed with spots instead of floods," she said. "I noticed a definite change in the lighting in the room." And even though compact fluorescent bulbs use less wattage than conventional incandescents, the store's electric bill
This nonprofit gallery that displays and sells the work of regional artists has specialized lighting needs. David Sessions, the gallery's director, said a PSE grant made it possible to replace 95-watt incandescent bulbs in 130 large "can" light fixtures two years ago. The LED replacements are 23-watt ceramic metal halide bulbs, which retail for about $95. Sessions said the LEDs provide twice the illumination of the 95-watt bulbs, "and the rooms are cooler. That heat element is eliminated." So besides lowering the landlord's electric bill by using more energy-efficient lights, the gallery also doesn't need to have the air conditioning on as often as before. "We're really pleased," Sessions said, noting that the LED bulbs have proved to be long-lasting. In the two years since the upgrade, "We've had 10 bulbs that have burned out of the 130, and the lights are on here 10 hours a day, probably 360 days a year." The second phase of the gallery's lighting upgrade will replace 45-watt bulbs in all the smaller can lights with 3-watt LEDs that should be delivered soon. Sessions pointed out the halo-like effect framing an oil painting on the wall beneath an LED spotlight. "It's important for us to have an honest light as an art gallery," he explained. "That's what impressed us most was the clarity of the light."
July 2012 Kitsap Peninsula Business Journal â€˘ KPBJ.com 33
Mike Loudon is the third owner of this bakery that opened 27 years ago as an original tenant in Winslow Green, the first retail/residential complex on Bainbridge Island. A longtime food marketing executive with Snokist before he bought the business seven years ago, Loudon said the affordable switchover to LEDs "has been an amazing thing for us." "We swapped out almost $2,000 worth of LED bulbs," he said. "We changed out everything in the front of the bakery." He corroborated Brubeck's estimate, saying his business is realizing about "a buck a bulb" in savings on their electricity costs. "In a year, we think there's going to be at least $2,000 in savings," said Loudon, who heard about the program from a friend at North Coast Electric who used to be on the local Chamber of Commerce board. "They'll also be able to use our location to show people how good (the lighting upgrade) is," the affable baker said. Although he noted that "the quality of the light is a little different, it's a little bluer than the old lights," Loudon is pleased that his business is "greener" by using LEDs, and saving money in the deal. "It's certainly proven itself to be profitable for us," he said.
The Gallery/Bainbridge Arts & Crafts
Cathie Curry, Kitsap County outreach specialist for PSE, said the price of LED bulbs has come down, so "it's a much more affordable technology than it used to be." "One of the nice things about having businesses incorporate (LED lighting) into their locations, is residential customers can see them in action and get a sense of what a great technology it is." Curry said the LED rebate program is part of the company's commitment to increasing energy efficiency as demand for electricity increases with the region's population growth. The program also helps the utility meet efficiency standards required by the state. "It's cheaper for us to incentivize our customers to save energy," Curry said, "than it is to build new infrastructure to produce energy."
2012 Jeep Compass: Headed in the right direction By Bruce Caldwell The Jeep brand is synonymous with offroad performance. Over 70 years of goanywhere prowess has fostered a wellearned reputation. The irony is that owners of daily-driven Jeep SUVs seldom use a fraction of their vehicle’s performance potential. This attribute that attracts Jeep buyers is oddly one that few owners maximize. Jeep extreme-condition technology comes at a cost on top-of-the-line models such as the Grand Cherokee, but the good news is economy-minded customers can dial back the state-of-the-art features and still get a very competent Jeep at a budget price. A case in point is the 2012 Jeep Compass Latitude 4x4. Jeep Compass 4x4 models (they’re also available in front-wheel-drive versions) still have off-road enhancing features such as a center locking differential, stability control and roll mitigation. Wheels are placed at the far corners of the platform, so approach and departure angles are well suited for rugged trails. The relatively trim size (compared to full-size SUVs) makes the Compass fairly nimble on narrow dirt roads. The Jeep Compass comes in three trim levels: Sport, Latitude and Limited. We
tested a Latitude 4x4 model. We liked the features and value of this middle model. As an AWD model it came with the 2.4-liter inline four-cylinder engine instead of the 2.0-liter engine found in the Sport and Latitude 2WD models. The Latitude has a CVT transmission with manual shift capability, while the Sport comes with a standard 5-speed manual transmission (a CVT with crawl ratio gearing is optional on the Sport). The Limited’s main focus is an
34 • Kitsap Peninsula Business Journal • KPBJ.com July 2012
upgraded interior. Walkaround: The 2012 Jeep Compass was restyled in 2011, so 2012 changes are minor. The front 3/4 view is particularly handsome as it echoes the upscale Grand Cherokee. Our test Latitude had very handsome 5-spoke, 17-inch alloy wheels. The wheels were reminiscent of those on our all-time favorite Jeep SUV — the Grand Cherokee SRT8. The sharp styling and wheels do a lot to make the Compass look like a more expensive SUV. Interior: The interior is a Compass strong point, especially for the driver and front seat passenger. The level of materials, textures and design is high. Quality is above what one might expect in this affordable price range. Driver/front passenger legroom is stretch-out spacious. Rear seat room is fine as long as the front seats aren’t all the way back. The Compass is classified as a fivepassenger vehicle, but a tall floor tunnel compromises the middle position. Rear seat small item storage is very limited. Cargo capacity and utility are great. The split rear seats fold flat and the front passenger seat can also be folded. The seatback is hard plastic so long items can be transported (as long as a single passenger rides behind the driver). A low loading height and a wide hatch make cargo handling easy. There’s ample space even when the rear seats are in their upright
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position. The sound system, gauges and controls are all very nice and easy to use. The auxiliary steering wheel controls are excellent. Under The Hood: The 2.4-liter engine in our test Latitude was rated at 172 horsepower and 165 lb-ft of torque. The 2.0-liter engines used in front-wheel-drive Sport and Latitude models are rated at 158 horsepower and 141 lb-ft of torque. Both engines are DOHC designs. Our tester was EPA-rated at 21 mpg city and 26 highway. Under mostly city driving conditions, we weren’t able to get out of the teens. We felt engine power was adequate, but far from exhilarating. The engine gets the job done, but it did seem a little buzzy on steep hills. The four-cylinder engines fall short in the refinement department, especially compared to the wonderful V-6 and V-8 engines found in the Jeep Grand Cherokees. Behind The Wheel: We place Compass road manners in the fine category—very adequate, but nothing to rave about. The ride is comfortable, stable, and offers a good compromise between sports car road feedback and luxury car numbness. Wheel location is great for offroad hill climbing, but it yields a large turning radius due the relatively long wheelbase. Compass road manners compare favorably to competing compact SUVs, but they don’t stand out either positively or negatively. Whines: Oversize speakers limit door storage bin potential and we’d rather have the extra space than more booming bass. A minor complaint is the shape of the rear side windows and the “C” pillar—we’d prefer shapes closer to those on the Jeep Grand Cherokee. Bottom Line: We liked the 2012 Jeep Compass Latitude. It does a lot of things right at a right price. It looks like a smaller scale Jeep Grand Cherokee. This similarity worked both for and against the Compass. We liked the value proposition, but we missed the luxury and performance of the Grand Cherokee (which can easily cost twice as much as the Compass). The 2012 Jeep Compass is competent, versatile, great for local weather/driving conditions, and a strong value.
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Chevrolet Camaro 2SS convertible — a beautiful monster and latches with a single handle at the center of the windshield header. Once the latch is turned, a single button lowers the windows and top. Interior: While the instrumentation graphics have been revised for 2012, and are better than previously, the cabin is seemingly more about style than function. In a nod to the classic Camaro, the recessed speedometer and tachometer are set in square housings. Between those two is a digital driver information center controlled with a button located on a steering column stalk. The climate controls on the center stack are easy enough to figure out, but appear to have been designed more for looks than functionality. The optional consolemounted gauge package featuring oil pressure, oil temperature, volts and transmission fluid temperature, is good, but the location by the driver’s knee just forward of the gear shift lever make them difficult to see while driving. The front bucket seats are very comfortable, although the bolstering isn’t totally there for hard cornering. But given the wide spectrum of Camaro buyers, that’s a tough compromise. The low bolsters do make getting in and out of the Camaro easy, the front seat moves 8.5 inches, and the steering wheel tilts and telescopes, so all size drivers will fit. There’s a stitched leather wrap on the steering wheel, which has been changed for 2012. Visibility through the windshield is compromised by the long hood, wide Apillars, and raked windshield, although the strategic location of the driver’s seat helps. The trunk is deep but the opening is almost flat. There’s a pass-through to the trunk behind the rear seat, although it’s not that easy to get to. Under The Hood: Two 6.2-liter V8 Corvette powerplants are offered in Camaro SS models. The 426-horse LS3 is married to those with manual gearboxes, while the 400-horse L99 comes in those Camaros with automatics. The L99, coupled to the optional 6-speed TAPshift manual automatic, powered our test vehicle. The L99 features GM’s Active Fuel Management System, which saves fuel by shutting down half of the engine’s cylinders during certain light-load driving conditions, such as highway cruising. Behind The Wheel: The SS uses firmer shocks, springs and anti-roll bars than the standard V6 models, but the ride doesn’t suffer for it. A limited-slip rear differential reduces wheel spin when trying to put all those horses to the pavement. We found the ride, handling and braking on the 2SS to be outstanding. The chassis structure is rigid, and the grip is secure. We never encountered any harshness in the ride, and on a trip to Portland and back — ironically to preview drive a new Lexus model — found the Camaro very comfortable on the highway. The Camaro SS uses four-piston Brembo brakes, which makes them more resistant to fade — important on racetracks, but more so around here on mountain roads where the brakes are used
repeatedly. The TAPshift automatic does what you tell it to when using the paddle shifters in manual mode, and nothing more — just like it’s supposed to. In sixth gear on the freeway, there was sufficient torque for the transmission to not kick down under light acceleration if it didn’t need to. The cabin on the convertible while comfortable, offers a lot of road noise from the wide tires and 20-inch wheels. Safety equipment on all Camaros includes electronic stability control with traction control, anti-lock brakes, frontal airbags, front side airbags, airbag curtains, and tire pressure monitor. Whines: I’m not real sure how effective the acoustic material in the convertible top actually is. On the highway at 70 mph, I
could not hear very well using the Jawbone Bluetooth headset for my iPhone. Also, when I tried to remove the cell phone charger from the power port just in front of the optional gauge cluster, the entire plastic trim panel tried to come with it. Rear visibility over the driver’s shoulder isn’t too good, but frankly, it’s almost impossible to make it good with such a sporty roofline. Bottom Line: The Chevy Camaro 2SS convertible is especially striking and delivers everything a Detroit muscle car should — tremendously fast, powerful engines with a throaty, head-turning exhaust note, great transmissions, superb handling and comfortable ride. In short, it’s a beautiful monster, and drivers who have always coveted a Camaro won’t be disappointed.
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July 2012 Kitsap Peninsula Business Journal • KPBJ.com 35
By Lary Coppola The Chevy Camaro became an American icon on the day the very first one rolled off the assembly line 45 years ago as a 1967 model. To celebrate, there’s a 2012 Camaro SS 45th Anniversary edition. Our test vehicle was a Victory Red 2SS convertible — to which this review will be confined. All Camaro convertibles are equipped just like the coupes, and this generation Camaro was designed with reinforcements added to four key areas to increase rigidity — a cross brace under the hood connects the front shock towers, a transmission brace, an underbody tunnel brace, and underbody V-shaped braces front and rear help the convertible ride and handle like the coupe. Chevrolet claims the chassis is so rigid the suspension didn’t need to be modified from the coupe, and it has more torsional stiffness than the BMW 3 Series convertible. Camaro 2SS ($40,680 to $44,115 as tested) features special SS exterior trim, a beefier suspension, 20-inch painted aluminum wheels, and four-piston Brembo disc brakes. The 2SS upgrades include leather-appointed seats, heated front seats, rearview camera, multi-function auxiliary gauges, head-up display, Bluetooth, PDIM wireless auxiliary device control, Universal home remote, steering wheel-mounted controls, auto-dimming mirror, and heated mirrors. Walkaround: Although it’s bigger in every way — longer, wider and taller — this latest-generation Camaro, which was completely redesigned for model year 2010, really does capture the retro look of the original — but with less chrome. 1969 Camaro headlights seemingly appear in the head-on view, and the rear lines reprise the classic 1963 split-window Corvette. In fact, the lines of the ‘63 fastback ’Vette are obvious from almost any angle — but especially from above. The shark nose sports a black mesh grille, and a long, eye-catching aluminum hood, with a suggestive 2.5-inch power dome. Shapely strong hips above the rear wheels flare up and out to the short rear deck, and styling gills located just forward of the rear wheels add a nice touch. Even though the power dome hood and cooling gills aren’t actually functional, they add touches of style that don’t come across as phony. GM designers sought to make the roofline of the convertible match the coupe, resulting in a top with a smooth, carefully tailored appearance virtually mirroring the sleek coupe roofline. While the rigid Bpillar on the coupe is blacked out, creating a clean side glass outline, blending into the hardtop’s roofline, there is no B-pillar on the ragtop, so the look is almost identical. The convertible top is made of thick, durable canvas, and the headliner is filled with an acoustic material that’s supposed to keep the interior quiet. The soft power top, which also incorporates a glass rear window with defogger, retracts in about 20 seconds,
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36 • Kitsap Peninsula Business Journal • KPBJ.com July 2012
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By John Powers, Kitsap Economic Development Alliance Twenty-four hours are often considered just another day; but, for Kitsap’s Economic Development Alliance, our recent annual board retreat turned 24 hours into a time of dynamic transformation and unequivocal reaffirmation. The board of directors of our 30-yearold private/public economic development alliance has routinely gathered once a year to engage in a stereotypical strategic planning session. This year’s board retreat was, by design and result, markedly different thanks to the creative efforts of board chair Julie Tappero, vice chair Chris Rieland, and board members Chad Solvie and Anne Blair, who crafted the retreat agenda and exercises. Thirty-plus community and business leaders from across Kitsap County dedicated 24 hours of their time together at IslandWood to fashion a stronger regional economy by committing to build an ever stronger economic development balance sheet for Kitsap County and the Central Puget Sound Economic Development District. Our retreat aimed to accomplish three things: 1) strengthen board relations and effectiveness; 2) enhance board
members’ knowledge of Kitsap’s economic development assets and role in the region; and, 3) leverage board leadership capacity and social political capital to more effectively tell and sell Kitsap’s story — locally, regionally, nationally, globally. The private sector leaders participating in the retreat overall employ over 5,000 people and represent virtually every sector of our economy. The public sector leaders came from every geopolitical corner of Kitsap’s peninsula and island and represent all 250,000 citizens of Kitsap County. As a result of this unique time together, the board grew closer, more aware of its role and responsibility in shaping the local economy, and more confident of its individual and collective ability to tell the Kitsap story and answer the rhetorical question: “why not Kitsap?” We’ll tell you “why Kitsap”: Kitsap is connected and competitive; Kitsap’s workforce is highly skilled and productive; Kitsap is home to nine of the region’s 14 economic clusters and is the per capita leader in two of the larger clusters — defense and maritime industries; Kitsap is a leader in sustainability, innovation and intellectual property development; Kitsap offers above-average education attainment and household income and below-average cost of living and doing business; and, Kitsap offers the high est quality of life and
most beautiful environs in the Central Puget Sound Region. As a board we came to be more comfortable and confident in touting all the assets and attributes Kitsap has to offer the marketplace — to businesses already here, and to those that would be well served by coming here. Our conversations, balance sheet building exercises, and presentations centered on the facts demonstrating that Kitsap is connected to and competitive in terms of contributing to the overall economic diversity and vitality of the Central Puget Sound Region — the Seattle market and I-5 corridor. Many thanks to our presenters: state Sen. Christine Rolfes; Tim Thomson, CEO for the Port of Bremerton; Hal Calbom of Sustainable Media Group; David Allen, executive vice president of McKinstry; and Scott McFarlane, CEO of Avalara, who shared their perspectives and experience. In short, as a result of our valuable time together, the board of directors of the Kitsap Economic Development Alliance came to reaffirm our appreciation and advocacy for Kitsap County. We know with conviction that Kitsap is connected to, competes in, contributes to, and plays an integral role in advancing one of the most diverse, innovative and dynamic economic regions in the world. I want to personally thank each and every board member for the time and energy they invest in advancing KEDA’s mission to attract investment and grow jobs throughout Kitsap County. You are the #1 asset on our balance sheet. On Kitsap!
to Seattle waterfront-area attractions such as Pike Place Market, the aquarium, Bumbershoot or a Mariners game. “For me it’s a split; I want to see it work just as well each way,” Brewster said, adding that the marketing efforts seem to be
boosting the number of riders. But it remains to be seen if SoundRunner can achieve an average ridership of about 70 passengers per trip to make it viable for the port to continue operating the ferry service.
Kitsap … connected, competitive, moving forward together
from page 27 Seattle area for recreational opportunities in North Kitsap. She talks up SoundRunner as an easy way for families to take an outing
Municipal League could make major difference in Kitsap County By Cary Bozeman As a young city councilman running for election in Bellevue in the 70s and 80s, I remember being interviewed and evaluated by the King County Municipal League. It was a fair process and no one candidate took it lightly because you wanted a good grade to use in your election. It was my first experience with the League until a few years later when they honored me with a nice award for my public service. Not just because of my own positive experience, my opinion is that Municipal League organizations are effective and make a positive difference in the communities in which they reside. I believe strongly that it is time we consider establishing a Municipal League in Kitsap County to enhance the overall caliber and effectiveness of government. The Municipal League has a mission to "promote government that is open, effective and accountable, and to improve the caliber of public officials and the quality of public decisions. It is a volunteer-driven, nonpartisan, nonprofit organization that works toward better government." King County has had an active Municipal League since 1910 and has been responsible for many of the public policy issues that have improved the quality of life in that county. My good friend Jim Ellis was one of the civic leaders of the Municipal League of King County for many years and helped establish the regional government called Metro, which was a regional sewer system that helped clean up Lake Washington and provided some of the early regional utility service. The Municipal League provides the
following services for the citizens of its county: • It evaluates political candidates with a volunteer evaluation committee that conducts the equivalent of a job interview for people running for office. • It makes recommendations on ballot issues facing the voters by listening to both sides of the issue and then states its position and reasons for that position. • The League monitors a range of issues at the local level of various governments. • The League recognizes the accomplishments of elected officials, public employees, civic groups, and individual citizens who make contributions to the community and to better government. The Municipal League is a 501 (c)(4) nonprofit organization which focuses on public policy , civic engagement and civic literacy. It is funded privately by contributions from individuals and companies and is governed by a volunteer board and advisory board all who have an interest in open, effective and accountable government. All of which helps improve the quality of the decisions made by our governments and thus also improves the quality of life for our citizens. It represents all sides in its views with a goal of being fair and open. What will it take to bring these kind of benefits to our local politics? We need a group of people who are interested in better government and who are willing to work to organize the first Municipal League in Kitsap County. My longtime love of local government and my belief that nothing is more important to our quality of life than well managed, effective government leads me to be an early volunteer for this effort. Who is ready to join me and help?
RIGHT TO PRIVACY
the workplace is a moving target, changing with the situation and the legislation. This can make compliance difficult for employers, who have to consider multiple laws and court rulings. The best advice can be, when in doubt, consult your lawyer. • (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 firstname.lastname@example.org. View her LinkedIn profile at www.linkedin.com/in/jtappero. The recommendations and opinions provided are based on general human resource management fundamentals, practices and principles, and are not legal opinions, advice, or guaranteed outcomes. Consult with your legal counsel when addressing legal concerns related to human resource issues and legal contracts.
July 2012 Kitsap Peninsula Business Journal • KPBJ.com 37
from page 28 technology. For instance, a business that is dispatching drivers for delivery or transportation could easily see which driver was closest to the point of service, resulting in more efficiency in the business. Employers tracking the actions of outside sales people could determine which ones were using their time most productively during the day. But one can also imagine the misuses and possible invasions of an employee’s privacy. What if the employer tracked their activities on their off-hours? What if the employer tracked them to their psychiatrist or doctor appointments? So far, the Supreme Court has interceded on the use of this technology by law enforcement, stating it was an unwarranted search in violation of the Fourth Amendment, but hasn’t stepped in on the privacy issues for employees. As you can see, the right to privacy in
• Cary Bozeman is former mayor of Bellevue and Bremerton.
Baseball memories and the Seattle Mariners I love baseball, playing it from the time I could throw a ball, on into high school. Cars and girls won out over the game for a time — but not permanently. My Dad was the consummate baseball fan, and he instilled that in me. I have in turn, seemingly passed that same love of the game on to my grandson Bryce, who Dee and I have adopted. Steve Gardner of the Kitsap Sun wrote a column recently about his love of the Dodgers that I enjoyed tremendously, because it brought back so many great childhood memories. I grew up as a Yankees fan in Ft. Lauderdale, Florida — where the Yankees have played their Grapefruit League spring ball since long before the Florida Marlins ever existed. My Dad and I would journey to Lockhart Stadium semi-regularly, and sometimes he would even come get me out of school so we could go. And when I became a rebellious teenager (hard to believe, I know), and we couldn't talk about anything else, we could always talk baseball. Although he never made it any higher, my dad played minor league ball for a Yankees farm team, the Newark Bears, playing with Yogi Berra and Phil Rizzuto among others. Later, in the early 1960s, he was a partner in a 7-11 style store across the street from the Pier 66 Hotel where the Yankees stayed during spring training, and he would talk to the players when they came in. Some days, after school, I would go down to the
store and earn my allowance restocking shelves, and when they came in, my dad would introduce me to the Yankee players. I got to shake hands as a kid with the likes of Mickey Mantle and Roger Maris the year they were both chasing Babe Ruth's home run record. I also met Yogi Berra, Whitey Ford, Elston Howard, Tony Kubek, Gil McDougald, Bobby Richardson and Moose Skowran. Pretty cool for a kid not yet 12. The old Washington Senators also played spring ball LARY COPPOLA in Pompano The Last Word Beach, just north of Ft. Lauderdale. One year, a utility infielder named Dick Phillips rented the house across the street from us. I became friends with his son, who was my age, and their family invited me to a couple of Senators’ games. My dad kept a baseball under the counter, and when the Yankee players would come in, he'd ask them to autograph it for me. Not understanding the value of such a thing as a kid, in a situation similar to the movie The Sandlot, we played ball with it. I have to wonder what that ball would be worth today... At any rate, I grew up rooting for the Yankees because I felt I had a personal connection to them. I settled here, between the Mariners' first and second seasons, and
although I tried to become a fan, my heart was still with the Bronx Bombers. Over the years, I've come to root for the M's, and in spite of what the Yankees have become in this day and age, it's still a heart-wrenching affair when they come to town. My grandson Bryce is a major fan and reminds me of myself at his age (8). He knows all the players, their stats, and a surprising amount to do with the game. He plays Little League ball (I umpired this year as well), and with his natural athletic ability (he’s also a standout soccer player) has the makings of a great player. Hopefully, he won't be the teenager I was, but even if he is, like with my Dad, I believe baseball will always be our common ground. All this is to preface telling you about a really great book I just read on the history of the Mariners. It’s written by Jon Wells, the guy who publishes The Grand Salami — the gameday program sold on the street outside Safeco Field. It's called Shipwrecked: A People’s History of the Seattle Mariners. It’s a highly detailed account of the M's monumentally boneheaded player deals over the years — like trading perennial AllStars Jason Veritek and Derek Lowe at the beginning of their careers for over-the-hill reliever Heathcliff Slocomb. The book is also pretty opinionated on the Mariners’ business philosophy on running a baseball team. Under team president Chuck Armstrong and CEO Howard Lincoln — neither of whom are obviously baseball guys — in spite of all the stupid deals, only
a handful of winning seasons, low attendance and a demonstrated contempt for the fans, the Mariners have been one of the most consistently profitable teams over the long haul. Never was that contempt more apparent than after 2001, the most successful season in team history, when they tied the all-time win record. Lincoln publicly stated, “The goal of the Seattle Mariners is not to win a World Series… People want us to do something exceptional, but what we want to do is have the discipline to stick with our plan.” That plan was to keep payroll at the 2001 level — in spite of the fact that had they added the missing piece player(s), and gotten into the postseason, the team would reap additional millions in revenue. That attitude was the last straw for the best manager the M’s ever had — Lou Piniella — who opted out of the last year of his contract rather than work for Lincoln and Armstrong one day longer than necessary. Attending an M’s game Father’s Day weekend (my gift from Bryce), I’m reminded why the team is so profitable. At the concession stand, a pulled pork sandwich, hot dog, beer and a soft drink topped 30 bucks. For that kind of money, coupled with the outrageous ticket prices, we should be in the World Series at least as often as my beloved Yankees. In the book, Wells suggests that it’s time to sell the team to someone actually committed to winning. I couldn’t agree more.
38 • Kitsap Peninsula Business Journal • KPBJ.com July 2012
Lawsuit aims to keep RYO smoke shops from getting rolled DIY Tobacco is not the kind of store that would draw a cash mob of shoppers who want to support a local business. Smokers and tobacco merchants may not elicit much sympathy from the nonsmoking majority of the population, but the proprietors of roll-your-own smoke shops and their customers are not secondclass citizens. And there's no legitimate reason for a bill passed in the legislature earlier this year that clearly targets this group by imposing new taxes intended to put these small business owners out of business. Even though businesses such as the three DIY Tobacco shops in Kitsap County already pay a 95 percent excise tax on the wholesale price of loose tobacco they purchase, and customers who buy bulk tobacco and rolling tubes and then rent the in-store rolling machines pay retail sales tax on their purchases, the new law essentially reclassifies these small mom-and-pop businesses as cigarette manufacturers. The law requires these businesses to have a commercial cigarette-making machine license and a cigarette retailer license in addition to their tobacco
products retailer license, for each location. And they must purchase manufacturing tax stamps to put on containers of RYO smokes. Those requirements would effectively undercut the business model of RYO shops, where smokers have been able to roll 200 cigarettes for TIM KELLY about $32, compared with Editor’s View $60 and up for a store-bought carton. The new taxes would add another $20 or so to the prices of 200 RYO cigarettes, negating most of the price advantage for customers who take the time to come in use the rolling machines. It's not the blatant unfairness of legislating against roll-your-own tobacco shops, however, that may block this law from taking effect as scheduled July 1. A lawsuit filed against the state seeks a preliminary injunction to keep the law from taking effect, and asks that it be overturned because it was not passed by the legislature with the two-thirds majority required to
raise taxes. A hearing on the lawsuit was held June 25 in Franklin County Superior Court, where the lawsuit was filed on behalf of three plaintiffs — a tobacco shop owner, a customer, and the Ohio-based RYO company that makes cigarette-rolling machines. At the hearing, the judge granted the plaintiff’s request for a preliminary injunction, and indicated he views the legislation as subject to the two-thirds approval requirement. Really, the type of product involved isn't relevant; the lawsuit is based on the twothirds approval that would be required if legislators wanted to assess a similar tax on grocery stores where customers buy bulk coffee beans and use a grinder in the store to "manufacture" the ground coffee they take home. "This happened to impact tobaccorelated products, but this isn’t just a tobacco case," said Seattle attorney Chris Weiss, who's representing the plaintiffs. "It's a fundamental case of how people are governed in our state. "It's a broader question than just rollyour-own smokes."
He maintains the new bill constitutes a tax increase that is subject to the two-thirds majority for raising taxes that has been approved by state voters in a series of initiatives. The RYO tax bill passed in the House with two-thirds approval but not in the Senate. The legislation was co-sponsored by state Sen. Karen Keiser, D-Kent, who claimed in a newspaper interview that she was motivated by public health concerns and wanted to prevent the proliferation of cheaper cigarettes. But even if the 65 RYO shops in Washington go out of business, it won't stop smokers from from rolling their own, and some may switch to buying cigarettes online and not paying any state taxes. And with most states having introduced similar legislation — it's passed in 12 states and failed in 24 others so far — it's not hard to figure that what's likely underlying widespread attempts to force RYO shops out of business is lobbying by Big Tobacco to stifle competition. Tim Kelly is editor of the Kitsap Peninsula Business Journal.
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July 2012 Kitsap Peninsula Business Journal â€˘ KPBJ.com 39
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