December 2013 Vol. 26 No. 12
The Voice of Kitsap Business since 1988
Historic ferry offers new venue, p. 18
Gifted entrepreneur Bremerton woman has a holiday hit with her handmade F.R.O.G. Soap using a unique ingredient
Port of Bremerton CEO retiring, p. 6
Inside Special Reports: Executive Gift Giving, pp 8-14 Tax Planning, pp 26-29 People, pg 2 Real Estate, pp 23-25 Human Resources, pg 30 Technology, pg 33 Automotive, pp 34, 35 Editorial, pp 36-38 Home Builders Newsletter, pp 19-22
Laura Kneib displays her giftwrapped soaps at the first of two holiday markets the Bremerton Farmers Market set up. The second one will be Dec. 8. Tim Kelly photo
By Tim Kelly, Editor Laura Kneib found a forgotten family keepsake last year, something that had been packed away with her late mother's belongings for a long time. It wasn't heirloom jewelry or vintage clothing or an old photo album. It was two bars of soap, wrapped in wax paper. It has sentimental value because it’s soap that Kneib and her mother made themselves, maybe 40 years ago or more, when their family lived in rural West
Virginia and owned a general store that she describes as “an old-fashioned mercantile.” Today, Kneib is a fledgling entrepreneur whose handmade soaps are fragrant, artistic creations, but they have something in common with the plain white squares of homemade soap from her youth. She learned from her mother how to use bacon grease to make soap; the fancy bars she sells now are made from waste vegetable oil. “Anybody can make soap,” Kneib notes,
Cover Story, page 14
Avalara maintains ranking among fastest-growing tech companies By Rodika Tollefson Sales tax is not exactly a popular topic at cocktail parties, but mention the two words to Scott McFarlane and his eyes light up. He could probably talk about it all day — and even make it interesting. McFarlane has plenty to be excited about when it comes to sales tax and the Scott McFarlane company he cofounded, Avalara. A leading provider of sales-tax automation services, Avalara has been on various “fastest-growing company” lists for several years and has been growing its customer base by leaps and bounds. The latest such recognition came from Deloitte’s Technology Fast 500 list, which ranks the 500 fastest-growing
companies in the technology, media, life sciences, telecom and clean technology sectors. Avalara was No. 268 for 2013 — and it’s no stranger to the ranking, having been there before in 2010 (No. 28) and 2011 (No. 68). Other recognitions have included the Inc. 500 list, Puget Sound Business Journal’s fastest-growing businesses list and partner of the year from Microsoft. Avalara’s blockbuster offering is AvaTax, a SaaS (software-as-a-service) product that allows companies to integrate tax calculation into their own financial software or point-of-sales system. The financial program sends the invoice information to AvaTax via the Internet, then AvaTax sends back the calculation, in the process keeping a record and generating a report. Avalara’s services include not only Cover Story, page 4
Local sculptor’s commissioned work unveiled at B.C. school Internationally acclaimed sculptor Mardie Rees of Gig Harbor attended the recent unveiling of her 8-foot tall bronze sculpture of C.W. Lonsdale, founder of the Shawnigan Lake School in British Columbia. The commissioned sculpture of Lonsdale and his German shepherd was unveiled on campus Oct. 26 in front of a gathering of students, alumni and family members.
Crafting the sculpture was a four-year undertaking for Rees, who used live male models with Lonsdale's physique, photographs of him, a suit from the 1930s, and a German shepherd with periodspecific anatomy. Documentation of the entire process can be found on Rees' blog. "Mardie really immersed herself in Lonsdale's spirit. She spent time on the campus and interviewed myself and other former students," said Stuart Milbrad, a retired Kitsap County businessman who graduated from Shawnigan in 1948 and was
instrumental in getting the Lonsdale sculpture commissioned. "Her work is amazing and I admire her methodical approach to learning about Lonsdale — a giant of a man." Rees is leading a revival of the intensely personal medium of figurative sculpting using wooden tools and raw earth in her hands. "I like working big," said Rees, explaining that "My work is about connecting stories, characters, and emotion to create art that people can relate to and with which they can identify."
Photo courtesy Shawnigan Lake School
Sculptor Mardie Rees stands with Shawnigan Lake School alumni Stuart Milbrad of Bremerton, left, Francois Elmaleh and John Burr in front of the sculpture Rees created of the school’s founder, C.W. Lonsdale. The 300-acre lakeside campus and Tudor-style architecture will provide a spectacular backdrop for the large-scale bronze sculpture. Founded by Lonsdale in 1916, Shawnigan Lake School is a private co-ed boarding school. Rees is currently developing a World War II Marine Raider Memorial sculpture commissioned by the U.S. Marine Raiders Foundation. She is resident artist at Real Carriage Door Co., her family’s business in Gig Harbor. For more information on her work, visit mardierees.com.
2 • Kitsap Peninsula Business Journal • KPBJ.com December 2013
New staffer joins property management team at Windermere Windermere Property Management/West Sound announced that Liz Bailey has joined their property management team. Bailey is a Seattle native and has been a Kitsap County resident for more than 30 years. She has a professional background in the field of architecture and has participated in design and construction projects both here and abroad. She also has experience as a development consultant to businesses and nonprofit small organizations, as well as experience with real estate investments and property management. She can be reached at (206) 910-1800 or at LizBailey@Windermere.com.
New real estate broker joins Karin Kay Properties Karin Kay Properties has announced that Katie McClelland has joined the Silverdale-based firm as their newest real estate broker. The office is at 3594 NW Byron St., Suite 105, in Silverdale. Phone: (360) 6201786.
Area businesses, organizations holding charitable events during holiday season
• re/maX viCtory real estate agency celebrated its first anniversary in Silverdale on Nov. 14 and gave a $1,000 donation to North Kitsap Fishline.
West Sound Academy is hosting an open house for prospective students and parents on Dec. 3 from 7-9 p.m. The school is an International Baccalaureate World School offering college preparatory education for grades 6-12 in Poulsbo. At the open house visitors can learn about the school’s academics and extracurricular activities, meet the head of school and some of the faculty and students, and take a tour of the campus. RSVP to admissions director Lisa Gsellman at email@example.com or call 360-598-5954. For more information, see http://www.westsoundacademy.org/admissions/open-houses.
Women’s business group holds Silver & Gold Holiday Gala The Alliance of Women Owned Businesses (AWOB) is holding its Silver & Gold Holiday Gala on Dec. 11, from 5-8 p.m. at Canterwood Golf & Country Club. An invitation is especially directed toward women entrepreneurs, their business partners, colleagues and those who support women business owners. The gathering is designed to celebrate the spirit of enterprising women. Those attending will enjoy hors d’oeuvres, sweets, a no-host bar, live music and prize drawings. The event is open to all, and tickets are $10 for AWOB members or for guests. Tickets can be purchased online at http://awobwomen.org or at Amadora's Salon in downtown Gig Harbor.
2014 Economic Forecast — Decision Makers Breakfast — Keynote Speaker: John Mitchell, PhD Date: Wednesday, January 29, 2014 Time: 7:30 a.m. to 10:00 a.m. Place: Kitsap Conference Center
Register online at kitsapeda.org
”This event will educate you about the economic forecast and inspire you with profiles of local business leaders. Don’t miss it!” Steve Politakis, CEO, Kitsap Bank
Sponsorship Opportunities Available! $50 .......KEDA Investor Partners $75 .......Non Investor Partners $450 .....Table of 10/KEDA Investor Partners $650 .....Table of 10/Non KEDA Investor Partners
Contact Theresa Mangrum; firstname.lastname@example.org
www.kitsapeda.org • 360-377-9499
December 2013 Kitsap Peninsula Business Journal • KPBJ.com 3
Numerous businesses, organizations and community groups are holding food and toy drives and other special events during the holiday season to benefit charities that help the needy in the Kitsap Peninsula area. Here’s a list of some of these charitable activities: • Peninsula Credit union annual bake sale to benefit local food banks — Since 1987 Peninsula Credit Union staff have been baking up a storm, all to help feed the homeless in their communities. On Dec. 13, homemade baked goods and snacks will be sold in the Shelton, Port Orchard, Poulsbo and Port Townsend branches. You do not have to be a Peninsula Credit Union Member to take part, and all proceeds from the sale are distributed to local food banks. Last year, they were able to distribute over $2,000. Branches also will be accepting canned and other nonperishable food items to add to the contribution, and Peninsula Credit Union will be making a cash donation to local food banks in all of its branch communities. • the Breath of aire Choir is returning to Port Orchard’s Christian Life Center on Dec. 8 for a second annual concert to benefit the South Kitsap Helpline food bank. There is no admission cost; donations will be accepted at the door. The concert begins at 6 p.m. For more information, visit skhelpline.org or call 360-876-4089. • the GiG harBor PoliCe Benevolent fund will conduct its annual Holiday Helpers event on Dec. 10. This event allows local children in need the opportunity to get to know the Gig Harbor police officers, Pierce County Sheriff’s deputies, and Washington State Patrol troopers while Christmas shopping at the Gig Harbor Target store. Each child is provided spending money donated by community members and local service clubs, including funding from the Jaycox Gig Harbor Police Benevolent Fund. In addition, the children are provided a tour of the police department with breakfast and lunch provided by local restaurants, businesses or clubs. Donations for the program are being accepted at the police department. Donation checks made out to The Jaycox Fund also may be mailed to GHPD, 3510 Grandview St., Gig Harbor WA 98335. Call the department at (253) 851-2236 for more information. • ChiroPraCtiC lifestyle Center invites the public to shop local and attend the center’s first Holiday Shopping Soiree in Bremerton on Dec. 6 from 68:30pm. Foo d items, condiments, and personal hygiene products will be collected and given to Central Kitsap Food Bank. Raffle tickets for holiday gift items will be given away to those who donate items. The evening will feature appetizers, wine and treats, special event sales, seated chair massages, local artists, craft making, and raffle drawings. The event will take place at Chiropractic Lifestyle Center, located at 991 NE Riddell Road across from Peace Lutheran Church. Food bank items may be dropped off beginning Nov. 25. • the shePherds and anGels nonprofit is sponsoring its third annual Project Holiday, which adopts several families from local schools who would benefit from gifts, food, blankets and coats for Christmas. This year the organization adopted a Port Orchard school. Anyone who would like to help may call Shepherds and Angels to adopt a child, send food gift cards or cash donations. A donation tax form will be sent if requested. The Shepherds and Angels is a local faith-based organization that helps seniors, veterans, vulnerable adults and families in need in Kitsap, Mason, Jefferson and Pierce counties. Please send donations to PO Box 1996, Port Orchard, WA 98366. For more information or any questions, call Levon at (855) 322-6435, Lisa at (360) 895-3980, or Nita at (360) 981-1400. • the GiG harBor holiday tour of homes is on Dec. 14, from 10 a.m. to 5 p.m. The tour is a fundraiser to benefit local youth, and offers an inside look at some of the area’s most beautiful — and beautifully decorated — homes. There also will be an on-site gift bazaar with items from some of the area’s most creative artisans. Tickets for the tour are $20 and are available at www.gigharborholidaytour.org, at local outlets, or on the day of the event at The Gig Harbor Boys & Girls Club, 8502 Skansie Ave. • Petersen ChiroPraCtiC in Belfair is providing free x-rays and exams for all new patients in exchange for a bag of canned or boxed food for the North Mason Food Bank. The campaign will be completed on Dec. 12 when Mosquito Fleet Winery and Petersen Chiropractic co-host with the food bank at the North Mason Chamber of Commerce after-hours Christmas party at the winery. Attendees are encouraged to bring bags of food to that event as well. Any member of the community wanting to contribute to the food drive can drop off donations at Petersen Chiropractic, located next to QFC.
Academy hosts open house for prospective students
from page 1 calculation but also reporting, filing and remitting — CEO McFarlane compares it to a payroll company’s services, only for sales tax. When the product was introduced in 2005, SaaS was such a new concept, it usually entailed explanation. Not anymore, since cloud-based computing has become mainstream. “We don’t have to explain software-as-aservice anymore,” McFarlane says. “That’s helped us. Businesses like Avalara have a sales model that’s been proven so it’s helped us raise money, grow our client base and reduce costs.” One of those financial infusions came in the form of $20 million in venture capital from international investor Battery Ventures last year, helping Avalara expand its international reach and hire more employees. Currently, the company has 500 employees, 250 of whom work at the Bainbridge Island headquarters, tucked behind the new art museum and just a short walk from the ferry terminal. The company opened a second office in Seattle last year, and has offices in North Carolina, Virginia, California and Pennsylvania (including through acquisitions), as well as India. This is the third location for Avalara on the island, and McFarlane says the move to
the new three-story building from Erickson was strategic — about 70 employees commute from Seattle. The company has already outgrown the space and is expanding to next door. Back in 2010, Avalara had 90 employees, $10.9 million in revenue and processed about 300 million transactions. While McFarlane says they no longer disclose revenue, he notes the transaction number is now at more than 2 billion. And the Deloitte’s rankings were based on the company’s 411 percent revenue growth between 2008 and 2012. In 2010, Avalara was also just venturing into foreign markets, looking to provide VAT (international tax) services. Today, it’s doing so in 90 countries. “Sales tax is a complex issue for businesses. We’re not doing anything magical other than automating that for them,” McFarlane says. “We’re fortunate to be the ‘first to market’ player and be able to focus a lot of our efforts on growth.” Avalara’s niche is small to medium businesses and customers include “some household names,” according to McFarlane. The company’s tagline is “making sales tax less taxing,” and part of McFarlane’s job is to develop that “magical experience for customers.” And while sales tax is the focus, he says they’re “always cooking something.” That means that today they don’t provide services for taxes such as business and
4 • Kitsap Peninsula Business Journal • KPBJ.com December 2013
Make the most of your website. Need website design, enhancements, better social marketing, more traffic, more leads, more customers? Let us provide you with an independent analysis of your website, make specific recommendations on cost, put together a team of local, affordable web experts to help you get the very most from your website, online shopping to social media. Free initial consultation.
occupation or telecommunication, but tomorrow is a new day. “We’re quite content with the market that’s in front of us,” he says. The market, of course, is quite vast, as sales tax becomes more complex. Washington state, for example, introduced streamlined, or destination-based, tax in 2008 — imposing a sales tax based not on the company’s physical location but on the final destination. About two dozen states use this system, which also allows them, under a consortium agreement, to collect sales tax from online retailers who voluntarily agree to participate. The issue of online sales tax has been a hot one before Congress, with several bills introduced over the past years. The current bill, the Marketplace Fairness Act of 2013, would require online and mail-order retailers with sales of more than $1 million per year to collect sales tax. McFarlane says that bill would not have a huge impact on his company, though it would certainly bring new customers. He says for him, online tax is more of a fairness issue. “The Internet retailers have an advantage over brick-and-mortar businesses and I personally believe they shouldn’t,” he says. As the tax systems have become more complicated, so has Avalara’s technology become more sophisticated. Their job, McFarlane says, is to keep up with the laws and rules and apply them to their tax solution so the rules are transparent to the users.
Company to put self-serve shredding kiosks in Kitsap County stores All Shred (www.allshred.org), a locally owned shredding company, is expanding its shredding services to include self-serve kiosks located in the Fred Meyer stores in Port Orchard and Bremerton. The kiosks offer quick, secure document shredding at affordable prices. The machines shred up to 50 sheets at one time, and it takes about five minutes to shred a file-box full of material at a cost of about $3 per minute. For customers who have five or more boxes, All Shred recommends using the company’s convenient pickup service or checking for space availability at www.theshredstop.com.
Sales & Marketing Planning • Media & Community Relations for retail, service, professional & non profit organizations
Coming Next Issue...
“The Internet retailers have an advantage over brick-and-mortar businesses and I personally believe they shouldn’t.” — Scott McFarlane, co-founder and CEO of Avalara “We always refine the way our taxdecision engine works,” he says. One factor to Avalara’s success, according to McFarlane, is company culture — another topic that makes him light up. A prominent place in that culture goes to the brand’s orange color — which is not only splashed around the office but can also be spotted daily in many employees’ wardrobes (it’s a good thing, one employee notes, that orange is actually in fashion now and it’s easier to find it in apparel). The casual atmosphere includes a tiki lounge and Friday barbecues in summer for staff and family. “I believe our culture is one of our competitive advantages,” McFarlane says. “I spend a lot of time making sure orange is meaningful.” In addition to paper, items that can be shredded include CDs, floppy disks, credit cards, folders, paperclips and staples. The user-friendly kiosks are set to be in place by Nov. 22. The do-it-yourself shredder makes it quick and easy to destroy personal information, aiding in the prevention of identity theft. All Shred is leasing the kiosks from The Shred Stop (www.theshredstop.com), and plans to place more of them in Kitsap County. All Shred has been providing shredding and recycling services in the county since October 2004. The company is a subsidiary enterprise of Peninsula Services, a 501(c)3 nonprofit organization that provides training and employment to individuals with disabilities.
Are You Receiving Our Daily Updates? Sign up now at daily.kpbj.com
Healthcare & Fitness
The latest wellness information from the medical community
Best practices for businessess
Deadline to reserve advertising space
December 13th For more information: Dee Coppola 800-733-7990 or email email@example.com
Olympic Fitness merging its two locations in Port Orchard membership who primarily went to the Pro location will be given a free upgrade to a full membership for a couple months. “That way they can check out everything we have to offer here,” she said. “There are definitely different groups” at the two locations, she said. “But once we put everything together, I think it’ll work out.” The closure of Olympic Fitness Pro will leave two sizable empty spaces in the Mile Hill Plaza, where the Fashion Bug store that was adjacent to the club closed earlier this year.
Olympic Fitness Pro in the Mile Hill Plaza shopping center in Port Orchard closed at the end of November, and merge with the original Olympic Fitness club at 4459 SE Mile Hill Drive. Tim Kelly photo
December 2013 Kitsap Peninsula Business Journal • KPBJ.com 5
By Tim Kelly, Editor Olympic Fitness is closing its 24-hour facility in Port Orchard and merging it with the club’s original location less than a mile away. Andrea McDonald said she decided to invest in upgrading the Olympic Fitness facility that she’s owned for a decade at 4459 SE Mile Hill Drive, instead of renewing the lease for the Olympic Fitness Pro site in the shopping center at the corner of Mile Hill and Olney Avenue. She has leased the space since 2008 when she bought the business, which was previously Max Fitness. “We bought that kind of figuring if nothing else, we would just bring the equipment up here at some point, and I’ve been thinking about it every year,” McDonald said. “I think about it when I renew my lease, and finally decided to pull the trigger on it.” Olympic Fitness Pro will close at the end of November, after the other facility was scheduled to be closed during the week of Thanksgiving for completion of renovations. Although the club was closed for workouts that week, Olympic Fitness held a Turkey Trot three-mile run on the morning of Thanksgiving Day. The larger main club’s upgrade includes converting one of its two racquetball courts to a weightlifting room with free weights, and taking out two offices to enlarge the cardio room that has an array of treadmills, stationary bikes and other exercise machines. During the club’s closure from Nov. 2230, plans called for all the carpet to be pulled out of the cardio room and the large main workout area. The concrete floor will be stained before weightlifting equipment and exercise machines are put back in place. McDonald said the stained concrete floor will modernize the look of the facility, and some of the newer machines from Olympic Fitness Pro will be moved in. The Pro location has been open 24 hours a day, although McDonald said the time it was staffed had been reduced to five hours a day, and adult members had an access code for entry when no staff was on site. When the renovated Olympic Fitness reopens in December, it will be accessible 24/7 and will be staffed for longer hours, including having a night attendant on duty from 11 p.m. to 3 a.m. McDonald said she has about 30 employees, most of them part-time, and the merger of the two clubs will have little effect on them. Olympic Fitness offers two membership levels. One is for access only for weightlifting and cardio workouts, which is all the Pro location offered, while a full membership includes yoga and other fitness classes taught at the main facility, as well as use of the basketball gym and racquetball court. The club also offers some healthy cooking classes in connection with its periodic weight-loss camps. McDonald said people on the limited
Port of Bremerton CEO retires from second career Changing of the guard The Port of Bremerton has hired Jim Rothlin as the new CEO. Rothlin is currently the Port of Chehalis executive Jim Rothlin director and is expected to start his new role in Bremerton in midDecember. The port will have a retirement celebration for Thomson and a welcome for Rothlin at the port commissioners meeting Dec. 10, at 6 p.m. in the conference room located in the Bremerton National Airport Terminal Building. Rodika Tollefson photo
Tim Thomson doesn’t own an airplane — and doesn’t plan to after retirement — but he’s had the chance to keep flying this airplane (and others) several times a year as part of his job as Port of Bremerton CEO. Some of the recent progress at the port that he’s had a hand in include the completion of the Olympic View Industrial Park’s northeast campus with eight more pad-ready industrial sites, increased occupancy at the Bremerton Marina, the creation of the Kitsap Aerospace and Defense Alliance, and improvements at the
Port Orchard Marina. Thomson is quick to credit the members of his staff for the successes. “Here at the port very little gets done by one person. We have a success-oriented staff that’s very dedicated,” he said. The Bremerton Marina, which opened in 2008, has been a particular source of challenges for the port in recent years. The $34 million project stirred up controversy for a variety of reasons, including annual operating losses as high as $400,000. The commissioners had even discussed turning over operations to a private company. Instead, the port hired experienced marina consultant Bob Wise for five months last year to market the marina and bring in more tenants. The changes included new events, special two-year lease incentives and new
small-boat rates. And it worked — the lease rate went up to an all-time high of 62 percent this past summer (the highest it’s been before was 46 percent). Wise has been retained for more work in preparation of next year’s season, including a focus on retention. “He brought fresh ideas in marketing that proved successful,” Thomson said, adding that the results included “a significantly improved image” through the region. Just as the Bremerton Marina was struggling, the port has kept a high occupancy rate at the Port Orchard Marina (currently at 95 percent) as well as its industrial buildings at the airport and Olympic View Industrial Park — steady at 95 percent, higher than average, according to Thomson, even through the economic downturn. CEO, page 7
4 Month Special* At Olympic Fitness Single – $165 Couple – $250 Student/Senior – $140 Senior Couple – $195 No Initiation Fee *Expiration at end of term Limited amenities/services at Olympic Fitness Pro Call Olympic Fitness Pro at 895-3450 for their special(s)
• Print • Scan • Document Management
Fully Equipped Fitness Facilities : *
Group exercise classes • Full Gym • Two racquetball courts Fully equipped weight floor & cardio theater Wellness center offering yoga
Specialty Services : *
Realize your potential. Quality service and a commitment to the community.
Call 253-272-7099 800-495-3175 kelleyimaging.com
6 • Kitsap Peninsula Business Journal • KPBJ.com December 2013
By Rodika Tollefson The idea of retirement is not new to Port of Bremerton CEO Tim Thomson. But when he retired in 1999 from the Navy, he knew a second career was ahead. This time, when he leaves his office at the port’s headquarters for the last time at the end of December, he is certain he’s retiring for good. “I’m not looking to do any consulting work. I want to leave the calendar open,” said Thomson, a 17-year Port Orchard resident. That calendar may include more kayaking, traveling and playing the guitar, but mostly Thomson wants to focus on time with his family, which includes grandchildren as well as parents in Florida. Thomson’s 28-year career as a naval aviator included an air station command. He also worked at the Bremerton shipyard to homeport aircraft carriers. He didn’t want to take a typical retirement route and become a Navy consultant. An opportunity to be a property manager for the port opened up. “It allowed me to stay in the community and go into a different area where I felt I could contribute,” he said. In the 14-plus years since, Thomson went from being the business development manager (a title at one point temporarily changed to chief operating officer) to interim CEO prior to Cary Bozeman’s hiring and, two years ago, the CEO.
Our sister club
•Massage Therapy •Spa Services • Personal Training
895-3450 1476 Olney Ave. SE, Ste 101 Port Orchard Gym Hours: NOW OPEN 24 HOURS!
Serving Kitsap County for 25 years!
4459 Mile Hill Dr. Port Orchard Gym Hours: Mon - Fri 5am-10pm Sat 7am-7pm • Sun 8am-5pm
Wife of late co-founder joins real estate firm Sterling Property Group in Silverdale was established in 2013 by Ted Abernathy and Rick Slate, who had more than 40 years of combined experience in real estate. The business lost Abernathy when he passed away in July after a battle with cancer, but his wife Carrie shared his passion for the real estate industry and recently joined the Sterling team. Sterling Property Group’s office is in the Yacht Club Building, 9226 Bayshore Drive NW, Suite 140. Website: sterlinggroup360.com.
Rick and Heather Slate with Carrie Abernathy, center, are the principals in Sterling Property Group in Silverdale.
Even Santa has more to move than will fit in his sled! Merry Christm as from th e Hill Mo ving family!
Nationwide, local &
international moving Long-term heated storage
service Our people and our moving
supplies set us apart Pianos, antiques, hot tubs Office & industrial moving Display & exhibit moving Free no-obligation
DOT #534666 CC43090
800-833-9555 • hillmoving.com 360-697-3969 • 206-842-6715 26394 Pioneer Way NW, Poulsbo 98370
Local. Nationwide. Worldwide. The Hill family takes the business of moving personally.
December 2013 Kitsap Peninsula Business Journal • KPBJ.com 7
from page 6 The economic development that’s been going on at the park is one of the achievements Thomson has enjoyed the most during his tenure, especially giving businesses such as Safe Boats, Pacific Western Timber, Avian Flight Center and others the opportunity to grow and expand. One of the major changes Thomson made as CEO was a restructuring last year, with the goal of reducing staff levels and operating costs, at the commissioners’ request. Although it wasn’t the first restructuring the port had done, for Thomson it meant personally having a hand in cutting six jobs. “It was the right thing to do but one of the hardest things I’ve ever done as a manager,” he said. “Those cuts impacted families.” The restructuring saved the port $400,000 in operating costs and reduced its dependency on taxes to 26 percent from almost 50. “That frees up more money from taxes for capital improvements,” Thomson said. Some of those who’ve worked with Thomson described him as a quiet leader but a straight-shooter who could get along with anybody. “Working with Tim, I have found him to be a kind and fair man who really tries to listen and understand before reacting to situations,” said Kathy Garcia, the port’s marina operations manager. One of his prominent traits is the ability to work toward making something work instead of focusing on why it wouldn’t, said Kitsap Transit Executive Director John Clauson, who has recruited Thomson for several committees and boards, first when Thomson was still working at the shipyard. Among those recruitments were the boards of the Kitsap Visitor and Convention Bureau (recently renamed Visit Kitsap) and the Bremerton Historic Ship Association, which operates the USS Turner Joy. “Tim is very knowledgeable and a very practical individual. … People understand where he is coming from,” Clauson said, adding that he is savvy about the politics of the public sector, which is very important in a job that includes dealing with the public and with elected officials. Although Thomson doesn’t plan to do consulting, one thing he does have on the agenda: continue his involvement with the Kitsap Aerospace and Defense Alliance, created about two years ago in collaboration with the Kitsap Economic Development Alliance and several partners including all the local jurisdictions. Thomson, who has been serving as the KADA chair, said the focus has been on positioning Kitsap as an ideal location for aerospace- and defense-related industries. He plans to stay on as a volunteer and has the support of the alliance to remain as the chair. KEDA executive director John Powers said he’s excited to see Thomson continue his KADA leadership. “I think the world of Tim. I think he’s a true servant leader,” he
said. “My sense is that he will remain a factor in our community.” Thomson said he will miss the challenges he’s had at the port, even as he’s looking forward to family time. He is also thankful for the port giving him the chance to be involved in the community (his past contributions include being the president of the Port Orchard Rotary Club and the Puget Sound Naval Base Association and the co-chair of the Naval Memorial Lone Sailor Statue project.) “I feel very, very fortunate to have had a meaningful second career in my professional life,” he said, “and I thank the port for their support and the opportunity to learn and grow.”
Local sources abound for delectable choices
8 • Kitsap Peninsula Business Journal • KPBJ.com December 2013
By Tim Kelly, Editor Sweet, smoked, salty, spicy, crunchy, nutty. Local entrepreneurs provide gourmet foods that match each of those adjectives and more, providing delectable choices for holiday gifts or party fare. Start with chocolate. This indulgence is always in season, and this holiday season was ushered in with the debut of a
Chocolate Festival. Carter’s Chocolates owner Matt Carter of Port Orchard thought his town could host the kind of themed event he’s been a vendor at elsewhere, and he teamed up with the nonprofit community group Fathoms O’ Fun to make it happen. The Rodika Tollefson photo successful first-time event Silverdale artist Lisa Stirrett holds a prototype of this year’s — which Carter hopes will Trident Foods smoked salmon box being sold at Costco. Her become an annual affair — original painting for the box is on the easel. brought chocolatiers from Kitsap and beyond to the downtown Port Orchard Owner Amy Jablonski’s selection included Pavilion on a November weekend. The peppermint bark made with handmade festival even included a Chocolate Formal candy canes. Ball that replaced the annual Port Orchard Those candy canes are also used to Party that Fathoms O’ Fun has held as a the Peppermint Blast flavor of her decorate fundraiser for years. lavishly decorated caramel apples that had Vendors offered a celebration of their own display. This year, Amy’s artisanal chocolate in all shades and holiday November special — buy three gourmet shapes, along with other tempting sweets. apples and get a fourth one free — was Fudge, always popular around extended to online customers as well as Christmas, was in abundance from vendors visitors to the shop in Bremerton. such as Amy’s Decadent Chocolates. Carter’s specialty is truffles, as evidenced by T-shirts for his business bearing the slogan “Causing truffle in Port Orchard since 2008.” Scoops Nuts is an enterprise run by Susan Using organic chocolate, he creates the Otte, shown at left at a recent holiday gift fair confections in dozens of flavors — molded in Poulsbo, and her husband, Doug, who sell a Santa head truffle with white chocolate mint variety of roasted nuts. Edible gifts, page 13 Tim Kelly photo
A gift that tastes good, looks good with Silverdale artist’s painting Photo by Rodika Tollefson When Costco shoppers choose a boxed smoked salmon to give as a holiday gift, they are also choosing the work of a local artist. Silverdale’s Lisa Stirrett has been providing original art for the gift boxes for 12 holiday seasons, using her gyotaku painting techniques (gyotaku, an ancient Asian printmaking art, uses actual fish.) The company that was providing the product was bought last year by Seattlebased Trident Seafoods, which continued the tradition of hiring Stirrett for the art. “That’s really neat that Trident is still using a local artist,” she said. “I think that’s amazing.” Stirrett’s work can be seen around Kitsap in many public spaces. She created the glass cairn sculptures and the murals at the Bremerton ferry terminal, the glass cross in the Haselwood Family YMCA chapel and the steel “tree of hope” in the healing garden at the Harrison Medical Center’s Bremerton campus, among other things. In addition to doing commissioned work, she sells her art at her studio located on Silverdale Way. While she mostly works with glass and metal now, Stirrett got her start as a professional artist with gyotaku. Fishermen in ancient Japan used the technique to create a record of their catch with sumi paints. When Stirrett discovered the art and experimented with it, she found success almost immediately. But gyotaku took the back seat as she started working with other mediums. “This (commission) keeps me painting. I’m consumed by my glass work on a daily basis but I love painting,” she said. “It lights me on fire.” Stirrett was commissioned to do the gift boxes in 1998 after someone saw her work at a show. She recalls the show not being particularly successful because she gave away many business cards but didn’t sell much art. She didn’t get the call until at least six months later. “I mentor a lot of artists and I tell them, you never know,” she said. To create the salmon painting for the gift boxes, Stirrett looks for certain kind of salmon to buy — frequently at the Pike Place Market in Seattle. She uses a salt mixture to clean the fish (which is usually ungutted) and follows a special method of painting from light to dark color. She has the creative liberty to paint anything she wants within several given palettes, Salmon, page 9
Breweries get in the spirit with seasonal holiday ales
from page 8 deciding whether it’s a few salmon or an entire school. Traditionally, she’s been giving the buyer about 12 choices. It takes her a week to come up with a concept, and when she’s ready to paint, she’ll work on nothing else until all the paintings are done. “I stay up three nights in a row to do all the backdrops at once, and then imprint all the fish in one day,” she said. After that, it’s another week or two to handpaint the fine touches.
The seafood company makes copies of the painting, using just part of it or the entire thing; the painting may even be inverted — and Stirrett doesn’t see the final look until she receives a box prototype. The boxes, which are sold all around the country, have her name on it. Stirrett frames and sells the designs that are not selected, as well as making reprints of the “winner.” She’s had customers come in to her studio to have her sign their gift boxes, and this year Trident asked her to do a “road show” at the Silverdale Costco, where she’ll be signing the boxes sometime in December.
more malt-forward or sweeter." They also have a higher alcohol level — Winter Bock is 7 percent, while Old Scrooge is 9 percent and Silver City's Imperial Stout registers 9.2. A Silver City Holiday Variety Pack contains a dozen 22-ounce bottles including their six year-round beers, plus the winter beers and other seasonals. Other breweries are experimenting with barrel-aging their winter ales as well. J. Mark Hood, general manager of Sound Brewing in Poulsbo, said their primary Christmas release, Entendez Noel Belgian Quadrupel, "should age extremely well for years to come." Sound is aging 110 gallons of Entendez Noel, which has a formidable 11.8 percent alcohol level, in whiskey barrels. The brewery also has Old Scoundrel barleywine ale coming out for the 2013 holidays. The two winter seasonal beers from
Valholl Brewing Co. in Poulsbo include the aptly named Stouty Stouterson (13.2 percent alcohol level), an imperial oatmeal stout brewed with sweet potatos, brown sugar, cinnamon and raisins. Valholl also brews Winter Warmer, a malty amber ale brewed with ginger and cinnamon. At Bainbridge Island Brewing, the young co-founder and brewmaster Russell Everett says "winter warmers are my favorite style of beer." The brewery, located in the Sportsman Park Business Complex known as "the Coppertop," offers Wing Point Winter Ale and the oddly named Old Toe Jam Barleywine. "We'll be releasing some of our special 2012 Oaked Old Toe Jam around Christmas," Everett says, to be followed by some barrel-aged Wing Point Winter Ale around New Year's. Holiday ales, page 13
Come Shop Our Fun Selection of Gifts! www.springhousegifts.com
And while you’re here... enjoy refreshments or register for one of our high teas!
Victorian Rose TEA
1130 Bethel Ave. Port Orchard, WA
Springhouse: (360) 876-0529 Tea Room: (360) 876-5695
December 2013 Kitsap Peninsula Business Journal • KPBJ.com 9
By Tim Kelly, Editor Christmas beer from Slaughter County For giving or imbibing seasonal winter Brewing in Port Orchard, one of the smaller ales, The Kitsap Peninsula is a veritable and newer members of the region's brewing brewtopia. fraternity. Owner Scott Kirvan said the Area craft breweries are in a festive genesis of their Jul Frukstoppa beer was a mood like everyplace else this time of year, Norwegian fruit soup he once tasted for rolling out barrels of special holiday beers Christmas dinner at a friend's house. that suit the season. " To me, it tasted At 7 Seas Brewery like Christmas, and I in Gig Harbor, codecided that I owner and wanted my winter brewmaster Travis ale to go that Guterson greets a direction," he said. visitor in the The beer is a taproom where a merry mess to make, wall of windows give Kirwan said, as it's a view of the brewing brewed with apricots, operation that apples, orange juice, produces about honey and spices. It's 4,200 barrels a year. available on tap at The skinny, heavily Slaughter County's tattooed 30-year-old waterfront bar and looks a bit like a rad restaurant on Bay elf in Santa's beer Street. workshop, with a red Silver City stocking cap on his Brewery in Bremerhead and the goatee ton — the area's below his chin largest brewery, with pointing in opposite annual production directions. up to 32,000 barrels Guterson said he and rising — offers a and his business dark Winter Bock partner, Mike Runion, that was a 2012 switched from making World Beer Cup a Belgian-style winter silver medal winner, ale a couple years ago and will release an Imperial Stout right and decided their after Christmas. holiday beer would be The most a style they both Silver City Brewery in Bremerton makes Old particularly like to Scrooge Christmas Ale, and does a limited celebrated holiday release from Silver drink. release of Bourbon Barrel Aged Old Scrooge. City is Bourbon "What we’re Barrel Aged Old going to start doing Scrooge. This year's batch of the barleywine every year for our seasonal is a variation on Imperial Stout," Guterson said. The 7 Seas ale was tapped in early November, but each holiday beer, which will be released Dec. 1, year Silver City puts some Old Scrooge in will be "a big, full-bodied, robust type beer." used whiskey barrels for aging. The brewery This year's stout gets some of its flavor is hosting an Old Scrooge Vertical Tasting from 60 pounds of organic raisins used in Party on Dec. 3, and patrons will be able to the brewing process. sample the 2011 and 2012 vintages along "The main thing about imperial stout, with this year's, and buy four-packs of 22it's not a thirst-quencher, you're not going ounce bottles. gulp it down," Guterson explains. "You "Certain beers are better for aging … smell it and taste it and really get the full their flavor profiles will change and evolve," sensory enjoyment of a beer like that." explains brewery owner Scott Houmes. Fruit also figures prominently in a "Winter ales are more robust, darker, a little
10 • Kitsap Peninsula Business Journal • KPBJ.com December 2013
Local shops upbeat about the holiday season By Rodika Tollefson November and December are the “make it or break it” months for many retailers but small, locally owned stores are being squeezed out more and more by the lures of online shopping — this year, especially, is being forecast as having the most online holiday shopping ever. Local retailers are feeling optimistic, however. Shops have been seeing increased traffic this year — a sign the economy is on the mend — even as the government shutdown disrupted the flow in October. At Pine Cone Gifts in Kingston, owner Stacy Patrick says people have already been coming in to shop around in preparation for their holiday shopping ahead. “People are coming in for ideas,” Patrick said in mid-November. “They are seeing Christmas stuff everywhere so it’s on their minds.” Like many local shopkeepers, Patick and her husband, Jason, were gearing up in November for an influx of inventory ordered specifically for the gift-giving season. “Each year, the ‘shop local’ is picking up. It seems with the downturn in the economy and businesses closing, locals are making more of an effort to shop local because they want us to stay,” said Patrick, who’s owned the store with her husband for 10 years (now located in the Kingston Crossing center.) Pine Cone Gifts specializes in products made by Washington artists and artisans as well as other unique gifts. Among the local items are the Lil’s Lavender line made in Kingston, Handstirred Soap from Hansville and Fat Cat Mustard from Poulsbo. Like many local shops, Pine Cone Gifts doesn’t get much traffic on Black Friday but
officially kicks off its shopping season on Small Business Saturday. To mark the occasion, the Patricks brought in local artists for demonstrations and offered free gift wrapping and other extras. Popular Christmas gifts include funny and sassy items, locally made personal care items, specialty foods and retro toys, Patrick said. The store also offers a layaway plan. Asked how small shops are competing with big retailers and online shopping, she said what local businesses offer is a unique shopping experience. “It’s a different vibe,” she said. Small Business Saturday entailed snacks and wine at Juliana off Bethel Road in Port Orchard, a boutique shop that caters to women. Owner Sheri Bogataj tries to create a relaxing and fun shopping experience, and the holiday season is an extension of that. Bogataj started getting shoppers in the holiday mood with various specials starting in November, including a “buy one, get 30 percent off second item” through Christmas. The shop’s selection ranges from midrange clothing lines (which Bogataj prices lower than Seattle boutiques), fragrances and hostess gifts, to unique children’s toys such as the Moulin Roty line made in France and Emilie Sloan waterproof bags made in Seattle. “Our best-selling items are all made in America, including the fragrances,” Bogataj says, adding, “I do a lot of ready-wrap items so you can come in and grab something that’s ready to go.” Bogataj stayed opened late on Black Friday to give shoppers a chance to come in and “unwind” after spending the day at the malls and department stores. “This is the biggest week of the year for us and people love to support local
Casual Waterfront Dining In Downtown Port Orchard Full Service Bar • Happy Hour Everyday • 3pm – 5pm
For fabulous food in a relaxed setting and a beautiful view of Sinclair Inlet, Amy’s On The Bay is a great choice!
We have Holiday Gift Certificates
Purchase a $50 gift certificate between Black Friday and Christmas - receive a bonus $10 gift certificate! Voted “Best Steak” and “Best Seafood” by the people of SK 6 years in a row!
Amy’s On The Bay Restaurant & Bar 100 Harrison Avenue, Port Orchard 360-876-1445 www.amysonthebay.com
businesses,” she said. At Cook’s Whimsy in Gig Harbor’s Olympic Square, owner Carrie Clark was waiting to decorate until the day after Thanksgiving, but the holiday-related inventory was flowing in by November. Clark, who has a finance degree, went to culinary school and worked in Rodika Tollefson photo the restaurant industry before opening the store Owners Stacy and Jason Patrick gear up for the season at Pine Cone two years ago. “That’s Gifts in Kingston with added inventory and a few shopping events. “I carry good-quality things people can’t where I got the love for having the right tool find any place else and they also know for the job,” she says. they’ll get help choosing for specific age So she packs the store with all sorts of groups. I know my product and we have kitchen gadgets — from strawberry hullers good customer service. We walk them and mushroom slicers, to egg piercers — as through the process,” she said. well as a variety of kitchenware. For the This personal touch is also one of the Christmas season, she’s hired additional attractions at McBride’s Hallmark in help and brought in seasonal tableware as Silverdale, one of three Kitsap locations well as beefed up her inventory of items she owned by the McBride family of thinks will be popular. This includes Bremerton. Store manager Celia McMartin holiday crackers (filled with novelty gifts), frequently tells customers unsure what to lily pad silicone lids (colorful bowl covers buy that if they tell her their budget and the that suction on and work in the microwave recipient or occasion, she’ll gladly find the and the freezer), Nespresso machines and best gift for them. Thermapen thermometers (which give an “We have things for every pocketbook,” instant and accurate temperature read.) she said. Store employees know many Clark said it’s impossible for businesses customers by name, and some even do like hers to compete with online retailers, things like visiting them in medical facilities so instead they focus on their loyal during recovery. “We know their kids’ customers and on their core strengths. names and their dogs’ names,” McMartin “To be competitive, you have to do what said. small businesses do best — carry specialty As a Gold Crown Hallmark store, the items — but it’s also about employee shop carries a certain selection of Hallmark training and being able to talk to the merchandise, including a multitude of cards customers about our products,” she said. for quite unique occasions. But beyond “We give the personal touch.” that, the local owners customize their gift It’s the same personal touch that brings lines to their own customers, and they like people to Toys Etc in Poulsbo Village. The to promote local merchants when they can. store is nearly 10 years old and owner Christmas is a major occasion at Marilyn Sipila said what makes it unique is McBride’s Hallmark, starting with a kickoff not just the product base — classic and VIP event in early November, followed by traditional toys not available in big stores various rotating promotions and events — but also the customer service. almost every weekend after that. Among The Poulsbo store has about 9,000 the popular events are Friends and Family items including puzzles like the popular on Dec. 12 (which includes an employee Ravensburger jigsaw puzzles and art fudge contest with customers serving as supplies for adults and kids, colorful judges) and the Gift of Memories weekend windsocks made in Seattle, models, board Dec. 6-8, complete with giveaways. games, science kits and generally things that McMartin said the bestsellers are the will help kids use their imagination and Hallmark ornaments, now in their 40th develop. Good quality at reasonable prices year, with themes ranging from fishing, is Sipila’s main buying criteria. religious and sci-fi, to superheroes and “It has to appeal both to parents since classic cars. Vera Bradley bags and they’re paying for it and to children, and a accessories (including laptop bags and iPad lot of times I bring things that are quirky covers) and Willow Tree angels are next in and appeal to me,” she said. popularity. And as far as gifts for men — Sipila said the shopping pace is still up it’s Rednek glasses, Seahawks and other and down this year, largely because of the sports-branded items, dips and such. federal shutdown that’s creating a “People like to come here because it’s a bouncing, lingering effect on sales. But nice place to shop,” McMartin said. “They she’s gearing up for the “Christmas come here because they know we’re familymadness,” which will include extended owned.” store hours starting Dec. 10.
Giving the gift of kindness is always in style doing,” he said. And while the food banks are very grateful to the community during the holidays, they try to remind people that in January donations drop off drastically and many don’t have any food drives until spring. Peterson said she was especially worried about stretching donations in January through spring, and that help would have to be scaled back if there’s not enough food. “Everybody’s hearts get into giving this time of year. I would like for people to think about it year-round,” said Penny Gazabat, executive director of Key Peninsula Food Bank. “Hunger
doesn’t just happen in November and December.” Food banks started gearing up for holiday programs three or more months ago, especially hunting for bargains. But they usually still have shortages when it’s time to pack the food baskets — and any excess just goes toward the following weeks, when food banks are seeing a significant drop in donati ons. Below are some ideas for what the greater Kitsap Peninsula food banks still need for the December holidays. South Kitsap Helpline will provide food baskets to more than 1,000 families. Items in
shortage are canned fruits and vegetables (fresh welcome the week before Christmas); other holiday trimmings welcome. A toy and gift drive collects gifts for children 16 and under as part of a “giving tree” program; trees are places at local businesses. Drop off gift donations at 1012 Mitchell Ave. in Port Orchard by Dec. 18 and holiday food by Dec. 23; call (360) 876-4089 for details. Central Kitsap Food Bank will give more than 500 food baskets to families and needs more turkeys (10-12 pounds), olives, pickles Gifts, page 12
MAKING SPIRITS BRIGHT FOR 25 YEARS BY LEO FRIED DIAMONDS
| COLORED GEM STONES | DEDICATED GIFT EXPERTS Whether it’s a gift card or that perfectly chosen gift — we have you covered this season for gifts for loved ones as well as those special people in your organization. Find that perfect sparkle...
18946 FRONT STREET • DOWNTOWN POULSBO (800) 249-1586 | (360) 779-3322 | WWW.BLUEHERONJEWELRY.COM
December 2013 Kitsap Peninsula Business Journal • KPBJ.com 11
By Rodika Tollefson Although the recent government shutdown didn’t help, the economy in general has been seeing an uptick. But demand hasn’t decreased at local food banks — and in many cases, it continues to grow. “We’re seeing a lot more people coming in and a lot more of the elderly people are finding that finances are not holding up,” said Jan Coen, director of the Gig Harbor/Key Peninsula FISH Food Bank. Patti Peterson, executive director of Bremerton Food Bank and secretary of the Kitsap County Food Bank Coalition, said a lot more clients are coming in who have never been on assistance before, especially seniors and disabled individuals. She notes that data from the federal food stamps program (called SNAP) showed that one in six children w as hungry two years ago, and now that number is one in four. “The need is huge. There are many people you’d never believe would ever need help,” she said. Peterson is hearing from other food banks that they can no longer afford to give staples like milk and are making things stretch by giving half a dozen instead of a dozen eggs, for example. “November 1 was really a shocker — some food banks are seeing an ex plosion of people,” she said. The food bank is spending $8,000 to $10,000 a month to supplement food donations in order to keep up with the need. She said it’s not just a struggle for the food banks, but also as more businesses are closing doors, it’s an emotional struggle for first-time food bank visitors to come in when they find themselves in need. “We really try to make them feel welcome and comfortab le,” she said. At South Kitsap Food Bank, the number of families served in 2013 has grown by 8 percent since last year. Even people who are working are struggling, executive director Jennifer Hardison said. “They just don’t make enough to support their families,” she said. Hardison said any donations are welcome and she encourages people to even do simple things like pick up an extra can of food that’s on s ale. “We’ll find it a good home,” she said. “The more we receive, the more we can give out.” Denise Agee, coordinator of St. Vincent de Paul in Bremerton, has worked with the food bank for 25 years and says she hasn’t seen things as bad as the past two years. Not only there are more people coming for help but families are asking help with more than one thing (St. Vincent provides various types of assistanc e, as well as operates a women’s and children’s shelter). “Unfortunately many of those who were donating are turning into families in need, and that’s very sad,” she said. While the food banks haven’t seen the impact yet from the cuts in the federal food stamps program, they are expecting to see drastic increases in need. “A lot of the people we work with rely on food stamps and even $15-$20 a month has a big impact for them,” Hardison said. Hoyt Burrows, executive director at Central Kitsap Food Bank, said the food banks exist because of the community. “Without their generosity, we could never do what we’re
The Santa’s Little Helper Who Could By Jim Kendall Special to the Kitsap Peninsula Business Journal To my dismay I note that Christmas/gift catalogs are showing up in the mailbox earlier and in ever-growing numbers, weight and size. I clearly was mistaken in believing that the Internet would be the death of those nasty tree-killer catalogs. Well. Not catalogs about tree killers (oh, never mind.) “Christmas” began showing up in ads even before the Halloween candy made it into the bowl by the door. Egad! In any case, whenever I see that little overworked USPS jeep-looking buggy coming up the hill, I can’t help but think of “The Little Engine that Could” and all the huffing and puffing that went along with the tale. (http://www.amazon.com/The-LittleEngine-That-Could/dp/0448463598) Electronic Gadgets and Other Fun Stuff Radio Control Heaven! Mini RC boats, cars and even a submarine! http://www.mini-rc-cars.net/ minircboat.aspx How about a 150 MPH RC F-16? http://www.youtube.com/watch? v=nvqhLawLXNE Ok, then how about a B-17 RC flying fortress?
http://www.youtube.com/watch?v=9o wlwlxJxPw Not your cup of tea? How about an SR71 RC Jet? http://www.youtube.com/watch?v=1l YGUROZ_Pg Like the Go-Pro HD action cameras? Try the Xcel HD camera! http://www.youtube.com/watch?v=Le wfUhqYh4o Somewhat smaller and comparable in performance, this is an excellent camera for your dash or helmet. Monster Flat-screens and Big Ones Too! Pricing on those now-ubiquitous flatpanel televisions seems to be headed to the basement while the size of the things are approaching absurd. It won’t be long before instead of painting the walls of the rec room, they will be flat-panel displays ... one per wall! Ok, maybe I exaggerate. Decide for yourself. (Can “paint-on” television be far behind?) Can you say “absurd”? Try a 201-inch outdoor telescoping television! http://www.youtube.com/watch?v=5P mwDbka Perhaps a more realistic choice would be an LG 60-inch that is getting good reviews.
12 • Kitsap Peninsula Business Journal • KPBJ.com December 2013
Get the Journal on the go.
Register now at daily.kpbj.com to receive our daily business emailer (If you’re already an online subscriber, you’re set to go!)
The award-winning coverage you expect, in a format your smartphone will love.
The Kitsap Peninsula’s Best Source for Business News You Need to Know — In Print and Online
http://reviews.cnet.com/flat-paneltvs/lg-60lm7200/4505-6482_735536590.html At least you are not in danger of being squeezed like a lemon and it is 3D to boot! Ready to Rumble? The new 2014 C7 Corvette harks back to the classic looks of the ’70s with a 450 HP thunder machine under the hood. It is still the iconic American go-buggy. http://www.caranddriver.com/news/2 014-chevrolet-c7-corvette-stingray-z51photos-and-info-news
Watch the video for more details. Yum! How about the worlds largest production motor cycle? http://www.topspeed.com/motorcycle s/motorcycle-news/biggest-street-legalmotorcycle-ar60706.html A 410-cubic-inch V-Twin engine powers this thing. It looks like you would have to be seven feet tall to properly straddle it, but I would be willing to try! Until next year, keep on rumbling and Merry Christmas to all!
Paint and Bank of America, among more than a dozen others. General gifts such as games and puzzles may also be donated directly to Fishline. Cut-off dates are Dec. 17 for holiday food and Dec. 7 for gifts. Drop off food donations at 18916 Third Ave. in Poulsbo; call (360) 779-4191 for details. Helpline House on Bainbridge Island doesn’t provide food baskets but the number of items given away during December is increased. There’s a need especially for proteinrich foods (hardy soups, canned tuna, peanut butter, etc.) and special items such as jams and jellies, fancy sauces and salad dressings. This year, Helpline is replacing its gift shop program with a “holiday book nook.” New books for children up to age 12 are welcome through Dec. 16; toys are welcome and will be given to the island Toys for Tots program. Donors who would like ideas for books can stop at Eagle Harbor Books for tags, or ask any bookstore for popular titles. Call (206) 842-7621 for details or bring donatio ns to 282 Knechtel Way. North Mason Food Bank will give away as many as 200 baskets and needs hams, pie filling, all types of potatoes including au graten, canned fruits and baking goods such as flour and chocolate chips. Gifts are not specifically being collected because the food bank is participating in the communitywide holiday gift program this year. Drop off donations by Dec. 24 at 22471 State Route 3 in Belfair, or call (360) 275-4615 for information. St. Vincent de Paul in Bremerton will help 400-500 families from the Bremerton School District and about 300 children will receive gifts. Wanted food includes any holiday items such as turkeys, fresh potatoes, canned yams and canned mushrooms. Gifts for teens are especially in shortage, and best ideas are gift cards to stores. Drop off donations by Dec. 21 at 1137 N. Callow; call (360) 377-2929 for details. The Salvation Army in Bremerton expects to give food baskets to as many as 400 families this year, and has Angel Trees around local businesses for kids up to age 17; family sponsorships are also available. Food needed includes fresh, frozen and canned meat; fresh fruits and vegetables; turkeys and hams; and fixings. Teen gifts are in shortage, and popular items include art supplies, gift cards, small stocking stuffers and — this year — Monster High dolls. The Salvation Army is also in need of tents and sleeping bags for the homeless, along with ready-to-eat soups. Drop off gifts by Dec. 20 and holiday food up through Christmas. Call (360) 479-2695 for details.
from page 11 and canned fruits and vegetables. Gifts for clients are welcome — anything from stuffed animals and clothing to knick-knacks. Also wanted are hygiene products such as soap, diapers and laundry detergent. Drop off items at 3790 NW Anderson Hill Road in Silverdale by Dec. 23, though sooner is better. Call (360) 692-9818. The Bremerton Foodline expects to have about 750 families signed up for holiday food baskets. High-demand items include canned fruit and vegetables, canned pumpkin, mixes such as the small Jiffy corn mix and other nonperishables. Family sponsorships are available. The food bank also provides gifts on a first-come, first-served basis and welcomes gently used and new toys, clothing and household items. Drop off holiday donations by Dec. 20 at 1600 12th St. in Bremerton; call (360) 479-6188 for de tails. The Gig Harbor/Key Peninsula FISH Food Bank will serve food baskets for about 250 families and give out toys and gifts to more than 400 kids up to age 17 through its Santa shop. The main need is for basic foods such as canned vegetables, soups, cereals, pastas and holiday items such as dressing and trimmings; hams are more popular than turkeys. For the Santa shop gifts, teen gifts are often in shortage, and ideas include gift cards, CDs/DVDs, earphones, makeup, hoodies, hats and even hairdryers. Drop off gifts by Dec. 13; food donations welcome any time. FISH is at 4425 Burnham Drive in Gig Harbor; call (253) 8586179 for information. The Key Peninsula Food Bank only does Thanksgiving baskets but holiday items are included when available with regular food pickups in December. The food bank helps about 3 00 families a month, with many more people served through a Bread Closet program. The food bank is located at 17015 Ninth St. Court KP N in Lakebay; call (253) 884-4440. North Kitsap Fishline will give out about 500 baskets and needs turkeys, canned fruits, vegatables and yams, as well as fresh or frozen pies and holiday basics. The food bank is replacing its holiday gift shop this year with a new program called Christmas Child (for ages up to 18), which allows community members to buy gifts based on each child’s three wishes and three needs. Tag trees are located around Poulsbo at businesses such as Liberty Bay Books, Sport Haus, Peninsula
Port Orchard chocolatier tries Kickstarter for help expanding to Tacoma
from page 8
The owner of Carter’s Chocolates in Port Orchard has plans to expand his business with a store in Tacoma, and he’s running a Kickstarter campaign to give that effort a boost. Matt Carter, whose store is on Bethel Avenue near downtown Port Orchard, said he’s been a vendor before at a couple Tacoma community festivals. He thinks his business would do well there because there’s no purveyor of handmade chocolates, fudge and ice cream there. He’s looking at two potential sites, one on Sixth Avenue in the city’s restaurant district. His Kickstarter campaign that runs until Dec. 18 has a goal of raising $2,500 and had topped $1,000 in the first week. Carter, who opened his business in 2008 and is a regular presence at Tim Kelly photo the farmers markets and community festivals throughout the area in the Matt Carter, who helped organize this year’s inaugural Chocolate summer, recently helped organize the first Chocolate Festival in Port Festival in Port Orchard, is planning to open another store in Tacoma. Orchard, which was sponsored by community group Fathoms O’ Fun. Since he was out of work at the time, smoking food became a full-time pursuit, and in 2012 he decided to start his own business. Now he does about a dozen kinds of smoked cheese — gouda and sharp cheddar are the most popular, he said — and offers three flavors of cheese spreads (which became a popular but accidental addition to Smoking Pig’s repertoire after a couple overheated cheese blocks were reduced to a consistency too soft for making cheese balls.) Sibon also has done smoked almonds, cashews and pistachios and hopes to add them to his product mix again, but cheese has been the priority. Tim Kelly photo “During the farmers Visitors try fudge samples from Amy’s Decadent Chocolates at market season this year I the recent Chocolate Festival in Port Orchard. was so busy with cheese, I didn’t have time for doing nuts,” he says. Bremerton VFW kitchen. He’s graduated He was a vendor at the twice-a-week from using his grandfather’s smoker, which Bremerton market and the Saturday market could handle about 20 pounds of cheese at in Kingston. His cheeses were popular not a time, to doing more than 100 pounds in only with shoppers, but with other vendors an old proofing oven that he bought on who frequently traded products with him. Craigslist and converted for his needs. Sibon takes cheese he buys from Costco Smoking the cheese takes about six and does his smoking and packaging at the hours, and Sibon said he uses a mix of
woods — apple, alder, maple, mesquite, hickory and wood pellets — to infuse a mellow smoked taste that doesn’t overpower the flavor of the cheese. He said his enterprise benefitted from fortunate timing at the farmers markets, filling the niche left when Crimson Cove Smoked Specialties shifted its focus this year from local markets to a storefront location that also sells wine, and opened about three years ago in Poulsbo. Sibon and his dad, a retired firefighter who helps out with the business when he’s home from his seasonal job in Alaska, had an interesting encounter at Costco with Crimson Cove proprietor Jody DeSalvo one day when the smokehouse rivals were going for the gouda. “She goes ‘we need 20 of those goudas, we’ll take it all,’” Sibon recalled. “We didn't know who she was at first … but we finally agreed to split it.” Eventually, Sibon would like expand his offerings to include smoked meats and other items; he’s been experimenting at home with smoking fish. “But If I’m going to do that it would be another whole setup,” he said, “because I don't want fish anywhere near anything else.” Crimson Cove is a larger business with numerous commercial and restaurant customers for its products, but it also started as a small family enterprise that grew out of Mark DeSalvo sharing homesmoked treats with friends. Their specialty
Besides holiday gift packs, brewery merchandising includes T-shirts, hoodies and ballcaps emblazoned with logos and clever beer names (hard to top Silver City's Whoop Pass Double IPA.) A big hit this season at 7 Seas is a T-shirt with the brewery logo integrated with the Seattle Seahawks 12th Man design. The first order of 80 shirts sold out in one day, and Guterson said they were having more made. And speaking of the Seahawks and all their fans dreaming of a white Christmas followed by a Super Bowl appearance, a few of the concession stands at CenturyLink Field sell beer from 7 Seas and Silver City.
from page 9 Craft beers are promoted as an appealing option for Christmas presents from local businesses, though there are challenges with that for some breweries. "We don't bottle our beers, so it's not like people can just slap a bow around a bottle of Old Toe Jam and gift it to their boss," Everett says. "But we do sell a ton of growlers for presents and holiday parties, and a lot of gift certificates for growlers and fills." During December BI Brewing also sells gift baskets containing glassware, growlers
or smaller squealers with a certificate for a future fill, T-shirts and coasters, etc. "Those are very popular as presents to business acquaintances and staff," Everett says. Growlers, for the uninitiated, are halfgallon glass jugs patrons buy and bring back for refills at a brewery's taproom. Guterson, the head honcho at 7 Seas where three of their most popular beers are available in four-packs of cans, said growlers are an inexpensive way to enjoy your favorite brewery's beer. "It does have a more limited shelf life," he says, "but growlers are meant to be shared."
Edible gifts, page 18
December 2013 Kitsap Peninsula Business Journal • KPBJ.com 13
ganache, anyone? — and sells them individually or in gift packs. Many truffles have edible designs or logos of the locally produced flavorings used to make them. A new specialty item Carter’s is carrying this year is Choffy. The only ingredient is premium cacao beans that are roasted and ground, for making a rich brewed drink like the ubiquitous beverage that rhymes with Choffy. Gourmet popcorn This might be the last holiday that giftgivers have the option of ordering gourmet popcorn from Popcorn Chef. A recent post on PopcornChef.com and their Facebook page announced that the business will be “taking an indefinite hiatus” at the end of the year, after all orders for this holiday season are filled. Doña and Charles Keating of Bainbridge Island started their enterprise in 2005, and Popcorn Chef is known for an array of bold flavors, from the sweet (butterscotch caramel), to the spicy (dark chocolate w/chipotle, cayenne and white truffle oil), or the savory (cheddar BBQ). Their made-to-order popcorn contains organic ingredients, and some varieties are available in smaller quantities (two sizes of bags or 14- and 30-ounce snack tins), while others come in larger tins ranging from 2 to 6.5 gallons. The Keatings, who run a consulting firm called Professional Options and promote their gourmet popcorn tins as corporate gifts, are considering a number of options for their side business. Doña Keating said the hiatus is a chance for them to evaluate the operation, and to consider offers they’ve received to buy their business. They don’t have a permanent production facility, and usually rent commercial kitchen space at churches and other places where it’s available. “But I don't think that’s a viable longterm model in the end for the amount of business we’ve been doing,” Keating said, adding that they’ve had some staffing issues in keeping up with peak seasonal demand for their products. “We decided to take a few steps back and look at our business model,” she said, and they expect to decide by spring on the future of Popcorn Chef. In the meantime, they’ll be participating in the annual Christmas in the Country event Dec. 6-8 on Bainbridge Island and filling orders in time for Christmas delivery. Smoked treats A newer entrepreneur finding a holiday niche for his products is Dusty Sibon of Bremerton, a Coast Guard veteran whose business, Smoking Pig Foods, offers a variety of smoked cheeses. Sibon, 29, said smoking different kinds of food was “something my dad and I had been fiddling around with,” since a couple years ago when he found a brand-new smoker that had long sat unused in his grandfather’s basement. The smoked fare he brought to gatherings with friends to watch football games was a hit, and people were regularly asking him for more.
14 • Kitsap Peninsula Business Journal • KPBJ.com December 2013
from page 15 ratio for mixing lye and water with the reclaimed cooking oil, as well as palm oil and other types. The oil that had been used to cook french fries is filtered multiple times before the mixing process begins. “It took lot of trial and error,” she says of the science project she undertook after working for eight years as a graphics designer for the Navy command staff at Keyport. “I finally found the right balance to get a stable consistency,” she explains. “Then you could do anything you want with it.”
Such as adding essential oils for scents, herbs like madder root for color, and activated charcoal for neutralizing odors. One of her unscented varieties is called Guy Soap, with charcoal swirled through it. She keeps a bar by the kitchen sink to neutralize food odors, and notes it was particularly effective for handwashing to get rid of the fish smell after she and a neighbor “cut up a nice mess of salmon.” She makes a soap for getting rid of unpleasant dog smells, too. One of her more popular products is Katie’s Swamp Dog Shampoo, named for her 10-year-old Cocker Spaniel and made with a combination of charcoal, tea tree oil and lavender. Also, Kneib donates a percentage of the product’s sales to an organization that provides service dogs to veterans. Besides doing a brisk business at farmers markets and holiday fairs as well as online orders, Kneib’s local networking has led to some big orders from people such as Lynne Byrne, an audiologist with a clinic in Bremerton. “Laura was client of mine, and she thanked us with some soap. And I basically fell in love with her dog soap,” Byrne said. “As a business owner, I do thank my referral sources with Christmas gifts, and I commissioned her to do a whole herd of her little reindeer.” Those are soap bars wrapped in a washcloth decorated to look like a reindeer, and Kneib used a whole batch of peppermint soap to make 55 of them for Byrne. “I think it’s neat to partner with somebody locally who’s got such a unique product; it’s beautiful and makes a really wonderful gift,” Byrne said. Kneib loves to talk up the “green” aspect of her burgeoning enterprise, which gets oil from restaurants and from Wilson Recycling in Mason County. “In a year and a half I’ve reclaimed almost
But she found that had less appeal for many customers, who weren’t all that interested in hearing about the unglamorous main ingredient in the sweetsmelling boutique soaps they bought. More than old fryer oil gets recycled in the F.R.O.G. operation. Kneib cuts up boxes and pulls off the cardboard’s top layer so she can trim the corrugated pieces into wraps for soap bars. She also uses wood from shipping pallets to make her molds, into which she pours the thick mixture of ingredients to let it cool and harden overnight into blocks of soap that are cut into 4.75-ounce bars. The industrious soapmaker can do four batches in a day, which yields 248 bars. Kneib, who also makes wooden soap holders included in gift packs, converted an unused bedroom into a wood shop, where she utilizes skills she learned from her father growing up in Tim Kelly photos Laura Kneib (top) pours reclaimed cooking oil through a filter as Pocahontas County. An she weighs the needed amount for a batch of her handmade soap. old license plate from She spoons the finished mixture into molds to cool and harden. “Wild Wonderful West Virginia” hangs on the wall. two tons of waste material,” she says. “Each Her parents kept their three daughters bar of soap has an average of about 4 ounces busy working in the family store, which of waste material that’s been reclaimed.” Kneib ran in the summer when she was home from college. She made pottery in a studio her father built for her at the store, and taught pottery classes there and at Davis & Elkins College. Those experiences have helped her as an entrepreneur who handles every required task in her business, even making deliveries of some local orders. “I’ve done all of it myself,” says Kneib, an unassuming Baby Boomer who doesn’t have a cell phone but is tech-savvy enough to use her Kindle for processing debit card transactions. “It’s long hours, and I’m having a ball with it.” She recently hired a part-time helper to keep up with holiday orders. She’d like to eventually move into a larger production space and has some interested investors, but Kneib wants to keep F.R.O.G. Soap a handmade operation, so she can continue to do special things like making a batch of pumpkin pie soap for the holidays. For anyone who wants to know how she makes her earth-friendly soap, Kneib made a YouTube video that’s viewable on her website: www.frogsoap.com.
from page 1 since it’s a fairly simple process (though a labor-intensive one) of mixing lye, water and various oils. The website of the Handcrafted Soap & Cosmetic Guild list 20 soapmakers in Washington state, and many of them market their products as exquisite holiday gifts. Kneib does too, but what’s unique about her F.R.O.G. Soap enterprise — which takes up a lot of space in her modest twostory home perched above Ostrich Bay in Bremerton — is the use of reclaimed vegetable oil in the soapmaking process. The F.R.O.G. acronym stands for From
“I think it’s neat to partner with somebody locally who’s got such a unique product; it’s beautiful and makes a really wonderful gift.” — Lynn Byrne, owner of audiology clinic in Bremerton
Photo courtesy Laura Kneib
Pumpkin pie soap is a special holiday item.
Reclaimed Oil & Glycerin, and the choice of name for her business also provides a cute, colorful motif for packaging and marketing her products. “I’m the only one doing it from recycled waste oil in the U.S.,” she says. “Frankly, I’m surprised more people are not doing something like this.” Her “eureka moment” came a couple
years ago while sitting in Chet’s Place in Bremerton, and realizing there could be a practical use for waste oil from kitchen fryers other than using it in biofuel production. The restaurant agreed to be her source, and Kneib began experimenting; her challenge was figuring out the proper Soap, page 14
3M Digital operation on Bainbridge to close at end of year
December 2013 Kitsap Peninsula Business Journal • KPBJ.com 15
By Rodika Tollefson Minnesota-based 3M announced in November it would close its 3M Digital Signage location on Bainbridge Island at the end of December. The Bainbridge office employs 31 people and has been a big contributor to many local nonprofits. 3M Digital Signage specializes in interactive kiosks and digital signage hardware, software and network management. It got its start in 1997 as Mercury Online Solutions Inc., which later also acquired FRED Systems Ltd. Founder John Eisenhauer moved Mercury from Seattle to Bainbridge Island in 1999. Mercury Online Solutions, which had customers worldwide, was named the No. 1 fastest-growing privately held company in Washington in 2004, up from No. 13 spot two years earlier. It also held the 46th spot on the Inc. 500 list in 2003 — a year when the company had revenues of $16 million (from just under $1 million in 2001), according to a 2005 press release. Eisenhauer has since gone on to found another global tech company on the island, Kombi Corp. He said 3M Digital Signage is not the same business he started, but that Kombi, in many ways, is “advancing the same visions” he had at Mercury. When he sold the business in 2005, it had 30 employees, 25 of whom remained with the acquisition. “There are numerous people inside 3M that I care deeply about,” he wrote in an email to KPBJ. “The good news is that Kombi is profitable and growing just as 3M is departing, so I am able to ease some of the employment pain for the island, and specifically for some of my former/future co-workers.” He said he already hired three former Mercury Online/3M employees and was hoping to hire more. A 3M spokesperson could not be reached for comment but was quoted in several publications as saying 3M continuously evaluates its operations and the move was a strategic decision. According to the 3M website, the entire company has more than 87,600 workers and does $29.9 billion in sales worldwide.
Out-of-this world gift ideas, the 2013 edition
16 • Kitsap Peninsula Business Journal • KPBJ.com December 2013
By Rodika Tollefson Big retailers weren’t even waiting for Black Friday this year to try to get people flocking to the stores. Holiday shopping commercials took to the airwaves as soon as the political ads came off. If you’re all laughed out from those “Show Your Joe” Kmart ads, below are some out-of-this world ideas (for all budgets) for all the scifi, closet nerds and other geeks on your list. Rumor has it the economy is getting better, so a hot gift this year will no doubt be a Virgin Galactic space flight. After Ashton Kutcher last spring signed up as passenger No. 500, the reservations went into waitlist mode. Lucky for you, Sir Richard Branson and his family are ready to take off on their first flight next August, which means that list will start moving along. And don’t wait until next year — the price went up to $250,000 in recent months from a more palatable $200K. You don’t even have to go far to book — Gig Harborbased Specialty Cruise and Villas is an accredited space agent. If you’d rather do something more practical, spend that money on a flying car. Designed by a group of MIT graduates, this street-legal automobile called Transition converts into an aircraft in seconds. Perfect for any Puget Sound commuter, the twoperson plane can reach 100 mph (runway not included). Price is expected at $279,000 and you can reserve one for a
The Transition from Terrafugia mere $10K at www.terrafugia.com. True, it may be tough to decide between the flying car and the space flight, but really it’s a simple question: Do you give a one-time, two-hour vacation, or a convenient way to avoid the I-5 gridlock all year long? In case the subject of your generous gifting doesn’t do well with heights, you could consider a personal submarine instead, but be prepared to liquidate some assets. The two-person submersible is $2 million (sold at hammacher.com). It’s certainly worth every penny: Think of the romantic date as you float cozily together 1,000 feet underwater, getting an exclusive tour of coral reefs and shipwrecks. And if you’re short of cash, for a bargain of $19,000 you can buy a Killer Whale Submarine instead. The economy being what it is, thrifty, of course, is en vogue. But don’t confuse that with unhip. “Live long and prosper”
neckties, TARDIS cookie jars and Yoda bobbleheads are all so 2011. The least you can do is choose official Star Fleet-issue pajamas ($54.99 at jumpinjammerz.com). What grown man wouldn’t enjoy the comfort of these footed PJs, especially if they come in such bold colors as command gold, science blue and engineering red — and make him look as dreamy as Chris Pine … er, Capt. Kirk (the new and improved version.) For something a little more sophisticated, check out the Star Trek cuff links ($59.99) or the authentic Doctor Who replica pocket watch ($49.99), both from thinkgeek.com. While you’re at ThinkGeek, stock up on the $19.99 light saber pens for that teen who needs a little help from The Force to do homework, and on the $7.99 chocolate gaming dice sets for the gamers too busy to get up and fetch a sweet snack. And don’t forget your buddies at the office. The thinkgeek.com TARDIS trash can is a bit of a splurge ($89.99 unless you stumble on sales), but think of the entertainment value you’ll get from coworkers moaning and cursing at the sound of an appearing or disappearing TARDIS every time they open the can to ditch trash. (Also, it’s an environmentally friendly gift: You’ll become a green office in no time as everyone enthusiastically begins to recycle.)
Despite all the hoopla around the latest electronic gizmos (another iPad? Yawn), what seems to be trendy this year is that timeless classic, the watch. While watchmakers are trying to convince the masses that watches are still cool to wear, they are outdoing each other for the coolest, most out-of-this world idea. Some of the prices, of course, aren’t helping their cause. The supercool N7 Mass Effect Ambassador watch for the gamer in your life will set you back $800 on Amazon.com (almost double last year’s $475 price tag at biowarestore.com). This water-resistant watch includes Swiss movement and laser-etched N7/Mass Effect logos. Love the space idea but not ready to drop the $200K on it? There’s a watch for that: the Romain Jerome waterresistant “moon invader” chrono watch (www.thefinestwatches.com). At an economy-friendly price tag of only $11,180 (on sale), it includes moon dust, fibers from an International Space Station suit and Apollo 11 spare parts. If you want to go along with the timeless angle without leaving a hole the size of a moon crater in your bank account, there’s a watch (or two) for that, too. The Higgs Boson watch has a down-to-earth price of $39.95 at gadgetsandgear.com but is sure to be “the” gift for the science geeks. Just read the impressive description: “The mindblowing design of the Higgs Boson Watch displays what is believed to be evidence of the Higgs boson decaying into other bosons during a collision.” OK, so it’s just a beautiful representation of “the God particle” but doesn’t it make you feel smart just reading that and clicking on “add to cart”? And if that much physics makes your head hurt, go for the “Relativity” watch (under $30 from amazon.com retailers). It’s a clever take on Einstein’s theory that everything is relative — the hand stays put while the numbers circle around it. A few other promising ideas for those on your list who may be a little “out there”: a glowing chess set ($52 at Amazon), an RC Spy Video TRAKR (programmable) that can stealthily (allegedly) record video (under $110 at Amazon), and a very stylish yet practical Swarovski bracelet (steel with jet hematite) that “hides” a 16GB USB key ($175 at swarovski.com). Even better, go for something cheap. Like the iPhone cover that looks like the “Hello! My name is____” nametag. It’s a practical gift for First Contact and with the reasonable price of $9.89 (www.funslurp.com), it means you can start saving for some of this year’s prototypes that are going to be next year’s “must-have” gifts. Google Glass is just one of the many promising products that have geeks drooling all over their keyboards. You can sign up for the Explorer invite-only program (www.google.com/glass/start/how-to-getone/) that has given some lucky people an early opportunity to test the device — the developer edition is said to cost around $1,500. Google’s been mum on rollout dates for the mass market but there’s been speculation that the Glass is coming soon. So worry not: If you have to stick with more earthly gifts this time around, there’s always next year. The truth will still be out there.
Meeting renews focus on Port Gamble dock proposal
December 2013 Kitsap Peninsula Business Journal • KPBJ.com 17
By Tim Kelly, Editor The proprietor of the Port “This is not Gamble General Store and a giant Café says a lot of customers project, but ask him the same question. They ask where they can tie it has been up their boats, Eric Kleiva a giant says. “They want to know, controversy.” ‘how do we get to town from the water?’” — Jon Rose, He was among a crowd of Olympic Property about 75 people who showed Group up for a recent meeting about a community dock that Pope Resources wants to build just a stone’s throw from the store Besides the $19 million and café Kleiva and his wife cleanup that will remove a have run in Port Gamble since sewer outfall into Hood 2010. Canal and build a septic Discussions about a new system for the town, Rose dock in the former milltown noted that Pope has been a go back several years before partner in the Kitsap Forest that, as Olympic Property & Bay Coalition’s efforts to Group president Jon Rose acquire much of Pope’s reminded folks at the Nov. 7 timberland and preserve information meeting hosted public access for by OPG, a subsidiary of Pope recreational uses. Resources. It all adds up, in his view, “Our first dock application to a strong case for getting was in 2006,” he said, when the new dock needed to the state Department of help make Port Gamble — Transportation asked Pope still a company-owned town Resources about building a car — a viable waterfront ferry dock in Port Gamble for community again. use while the nearby Hood Photo courtesy Anchor QEA “We’ve worked six years An aerial photo displayed at the Port Gamble community meeting highlights the overwater structures that will be removed during Canal Bridge was closed. trying to get a bunch of That idea didn’t work out, cleanup of the bay and former mill site, and shows the location of a proposed new dock. public land so you can walk and since then Pope has been on it forever, and I hope you unsuccessful in two previous concrete and steel. That master plan — which envisions think we’ve turned the town into a gem,” attempts on its own to get approval for Rose’s presentation at the recent construction of about 200 houses, an Rose said in making his pitch to the mostly building a dock near the former sawmill on meeting included slides showing the agricultural component, and receptive audience at the recent meeting. Port Gamble Bay, site of an ongoing relative size of other area docks — one at commercial/retail development including a “We’re taking a sewer outfall out, and I’m operation to clean up the pollution caused waterfront hotel — has been submitted to Alderbrook Resort on the south end of just wondering if anybody else thinks it’s by the Pope & Talbot mill that ran there for Kitsap County. Rose said Pope is nearing Hood Canal is 9,690 square feet, and the not fair that we’re not getting a dock in a nearly 150 years until it closed in 1995. completion of an environmental impact dock built a few years ago in Suquamish is 150-year-old town? Pope reached agreement with the state statement on the proposed development 5,158, compared with the proposed Port Still, he knows the biggest obstacle is Department of Ecology earlier this year on that will be submitted for review and public Gamble dock that would be 4,796 square opposition from the Port Gamble S’Klallam a $19 million plan to complete an extensive comment, with the first public hearing feet. He also noted that the mill cleanup will tribe, and he expects an appeal if and when cleanup of the bay and the old mill site. likely early in 2014. remove various overwater structures that a dock permit is approved. Rose said he hopes the formal consent The application for the dock, which also cover a total of 80,700 square feet. “We’re probably going to end up in court decree will be signed by the end of the year, will be reviewed by state and federal Perhaps most importantly for securing over all of it,” Rose said in an earlier interview. and the work is expected to take a few years. permitting agencies, is being submitted approval, Rose stressed that what Pope “I would anticipate the final decision on a It will involve dredging huge amounts of separately. Resources plans to build will not be a dock will be made by a court.” wood waste, removing thousands of “This is not a giant project, but it has marina. No representatives from the tribe were creosote pilings and tearing out all the been a giant controversy,” Rose said. “We have specifically limited ourselves at the community meeting, and Rose said overwater structures that were part of the However, he said the company has to uses that won’t get it classified as a he’d hoped for a bigger turnout at the mill. revised its proposal in response to marina,” he said, because a marina meeting since Pope sent invitations to all “Now it’s 2013 and we have an agreedenvironmental concerns raised during designation would likely result in an area property owners. upon cleanup plan,” Rose said, “so we’re Pope’s previous attempts to get a dock automatic closure of shellfish harvesting in However, Rose did face one moving forward with the dock plan we approved, and he’s confident that the the area by the state health department. antagonistic questioner who accused Pope started working on in 2006.” outcome can be different this time. Although he acknowledged that the Resources of not caring about the The proposed 365-foot dock would be The new plan calls for grated surfaces on dock could be used by tour boats up to environment and said the company should built on the north side of the mill site and the dock’s walkways so more light will reach about 100 feet in length, Rose said there drop its asking price and sell Port Gamble actually would be on Hood Canal, just the surface of the water below, which is will be restrictions on how many boats to the S’Klallam — a suggestion that drew outside the opening to Port Gamble Bay. helpful for underwater vegetation. The could be at the dock at one time, and it will jeers from the crowd. The structure would include an abutment, dock’s location also has been shifted not rent moorage slips. “We are not anti-tribal, and we are not pier, truss, and gangway, as well as a slightly so that it extends over an area of “It’s going to be a marine terminal for anti-native rights,” Rose said after the angry primary float, a seaplane float, and a kayak deeper water, which mitigates some of the transport and loading/unloading of goods, challenger left. Despite some serious launching float. impact of shading. Also, the cleanup people, and services,” he said. “Port differences of opinion with the tribe, he The dock is a relatively small piece, operation will remove about 2,000 creosote Gamble really needs some kind of said, “We just think we should be able to cothough a crucial one, in Pope’s larger pilings from Port Gamble Bay and pilings functional dock, but we don’t need a exist.” redevelopment plan for the town of Port for the new dock would be made of marina.” Gamble to make it a tourism destination.
Historic ferry becomes a destination at Bremerton Marina
18 • Kitsap Peninsula Business Journal • KPBJ.com December 2013
By Tim Kelly, Editor For a guy who says he never wanted to be a seafarer, Christian Lint sure loves boats and has logged thousands of miles as a tugboat captain on oceangoing voyages. He recently piloted the MV Kirkland into the Bremerton Marina, where the 1924 wooden-hulled vessel will be moored and used a waterfront events venue. The Kirkland’s sailing days are over, but it has a long history as a Columbia River car ferry, WW II military craft, and most recently as a tourist boat on Seattle’s Lake Washington. It’s the kind of boat that Lint thinks should be preserved, which is why he bought it three years ago when the Kirkland was no longer of any use to Argosy Cruises after a fire in the engine room. “My goal was to keep it from being demolished,” he said. He was dismayed that the insurer viewed the sturdy 98-foot craft, which Argosy had refurbished as a tour boat in 1996, as totaled. Although the fire was fairly small, it left a sooty mess that took a lot of work to clean up, Lint said. However, there was no structural damage and the engine was intact. “There was nothing wrong with it, that’s the bottom line,” he said of the Kirkland. Asked how much he paid to acquire the historic ferry, the burly, well-traveled captain replied, “All I had.” He’s invested in old boats before and done well. He said the first boat he bought
Christian Lint is owner and captain of the MV Kirkland, a restored 1924 ferry that is moored at the Bremerton Marina and will be used as a floating venue for social events. Tim Kelly photos
was a 1929 tugboat for $22,000, and his first towing job in 1987 was taking a 300-foot Guppy class submarine out of the Puget Sound Naval Shipyard to Everett. “I got paid $1,200,” he recalled. Not a princely sum, but the opportunity for a more lucrative payday came along a couple years later when he took his tug to Alaska and got hired for $3,700 a day helping on the cleanup of the Exxon Valdez oil spill. Retired now from his adventures as a tugboat captain, the 63-year-old Lint still has a mechanic’s passion for toiling in the engine room. “My background really has been rebuilding classic yachts,” he said.
Once he got the Kirkland shipshape, he thought about taking it Tacoma or back to Astoria, Ore., where it started out ferrying cars across the mouth of the Columbia River. Then last summer he heard about the special two-year moorage deal at the Bremerton Marina, and he said he was impressed with the facility and with manager Kathy Garcia’s enthusiasm for bringing the boat there. He was encouraged that Garcia wanted to have “interesting historical value vessels” that would make Bremerton a “marina of destination.” The Kirkland, which Lint plans to rename, is listed on the Washington Historic Register and the National Register of Historic Places.
As an events venue, it has a spacious, glasswalled main deck and an enclosed upper deck. There’s a pool table, a bar with five beer taps, and maritime ambiance galore. There’s no venue management contract with Lint, but Garcia and Port of Bremerton marketing consultant Bob Wise said they will let the community know about what their new tenant has to offer. “We’ll be promoting it at chambers and downtown business associations, to get people down to the marina,” Garcia said. “They don't have to have a boat to have an event at the waterfront.” “We’re excited to have the boat at the marina,” Wise said. “We certainly look forward to letting yacht clubs and the boating community know about it, and I think we’ll get a lot of interest.” Lint owns another historic vessel he’s pretty proud of, one that’s even older than the Kirkland. The 120-foot El Primero, built in 1893 as a steam-powered yacht, is currently on display at the Foss Waterway Seaport in Tacoma. “Hopefully we can convince him to bring that one here as well,” Garcia said.
from page 9 is smoked salmon brined with wine, as well as cheeses, nuts, oils and salts, available in a variety of gift baskets. The popularity of nuts as a holiday (or anytime) treat may spike this season because of new focus on the health benefits of eating nuts. There’s been a lot of media coverage about a New England Journal of Medicine study that found people who have a daily serving of nuts are more likely to live longer. For those who are nuts about nuts, local options include an established business and an entrepreneur found at holiday festivals and community weekend events. CB’s Nuts has a roasting facility and retail shop in Kingston and offers online orders for delivery of gift tins and holiday variety packs. There’s also Scoops Nuts, a side business run by Doug and Susan Otte of Suquamish. They offer a variety of roasted nuts — pecans, cashews, almonds, etc. — some with a spicy taste, some with a sweet glaze.
December 2013 Edition
Events And Activities VISIT the NEW HBA Website! www.kitsaphba.com On Line Registrations! Wednesday, December 4 Kitsap HBA Remodelers Council, 4 p.m. @ HBA Thursday, December 5 Developers Council, 7:30 a.m. @ HBA Special Presentation on Stormwater Thursday, December 12 Build A Better Christmas, 4 p.m. Gift Wrapping Party @ HBA All HBA Members are Welcome
Congratulations 2013 Remodeling Excellence Award Winners! In early November, the Kitsap HBA Remodelers Council presented the awards of excellence to member remodelers. With 20 separate entries this year, the judges had their work cut out for them. 14 projects were awarded the coveted REX award. The diversity of the projects our members completed this year is incredible. This year’s categories spanned from a commercial motorcycle dealership to the renovation of a wonderful, yet unusable barn. We had incredible baths on limited budgets to fantastic whole house renovations. The competition was tough. Even those that didn’t win, submitted incredible projects for our judges to consider. Be sure to check out the before and after photos of all the winning projects at www.kitsaphba.com. • Commercial $100K to $250K The BJC Group • Exterior Finishes SF Kafer Construction • Existing Other Building Sentinel Construction & Consulting, Inc. • Judges Choice A Kitchen That Works LLC • Residential Kitchen Over $60K Joe Gates Construction Inc The following companies took home multiple awards in several categories. They are listed with one photo from just one of their winning projects —
Thursday, December 19 Special Date 2 p.m. Executive Cmt. Mtg. 2:30 p.m. Government Affairs Cmt. Mtg. 3:30 p.m. Board of Directors Mtg.
2013 BUILDER & ASSOC. DIRECTORS Karla Cook • Judy Granlee-Gates Joe Hurtt • David Godbolt, CAPS, CGP, CGB, CGR Berni Kenworthy • Miriam Villiard Kevin Ryan • Leslie Peterson, CGA Shawnee Spencer • Jim Way, CGB
2013 STATE DIRECTORS Robert Baglio • Kevin Hancock Judy Mentor Eagleson • Joe Hurtt Justin Ingalls, RCS • Wayne Keffer, CGR, CAPS John Leage • Ron Perkerewicz
2013 ALTERNATE STATE DIRECTOR John Armstrong • Walter Galitzki Brent Marmon • Greg Livdahl • Jim Heins
LIFE STATE DIRECTORS Bill Parnell
2013 NATIONAL DIRECTORS Robert Baglio • John Leage
Sun Path Custom Construction Bath Over $25,000 Not pictured: Historic Renovation
Wednesday, December 25 HBA Closed Merry Christmas
2013 ALTERNATE NATNL. DIRECTORS Michael Brown • Jeff Coombe
LIFE DIRECTORS Rick Courson • Jim Smalley • Bob Helm Bill Parnell • Larry Ward John Schufreider • Dori Shobert
2013 COUNCIL & CHAIRS
NOTICE to MEMBERS: Please review your listing on the HBA website (www.kitsaphba.com). The annual, printed Membership Directory will be Printed soon! Make sure your company information is correct!
Wayne R Keffer Construction Kitchen $30K to $60K Not pictured: Bath Under $12K and Bath $12K to $25K
2 Important Dates for January
Build a Better Christmas. . . Randy Biegenwald Built Green . . . . . . . . . . . . . . . . Walter Galitzki By Laws & Nominations . . Wayne Keffer, CGR, CAPS Developers Council. . . . . . . . . Berni Kenworthy Golf Classic . . . . . . . . . . . . . Shawnee Spencer Govt. Affairs Cmte . . . Judy Mentor Eagleson Remodelers Ccl Chair . . . . . . . Walter Galitzki Membership . . . . . . . . . . . . . . . . . . John Leage Parade of Homes . . . . . . . . . . . . . Dee Coppola Peninsula H&G Expo. . . . . . . . . . Ardi Villiard Peninsula H&R Expo . . . . . . . . . Dee Coppola
HBA STAFF Executive Vice President . . . Teresa Osinski, CGP firstname.lastname@example.org
Wednesday, January 1 HBA Closed Happy New Year
Friday, January 10 HBA Installation & Awards Banquet RSVP Today to HBA
Whole House Over $300K Not pictured: Whole House $225 to $300K, Residential Addition over $175K, and Decks/Gazebos/Etc.
VISIT the NEW HBA Website! www.kitsaphba.com On Line Registrations!
THE 2013 FORD F-SERIES TRUCKS MORE POWERFUL, CAPABLE & ADVANCED.
PORT ORCHARD FORD
1215 Bay Street, Port Orchard, WA 98366 • 360-876-4484
2013 OFFICERS President . . . . . . . . . . . . . . . . . . . . Robert Baglio First Vice President . . . . . . Judy Mentor Eagleson Second Vice President . . . . . . . . . . . . . . John Leage Treasurer . . . . . . . . . . . . . . Randy Biegenwald Secretary . . . . . . . . . . . . . . Dee Coppola, CGA Immediate Past Pres. . . . Wayne Keffer, CGR, CAPS
Events and Administrative Assistant . . . Katie Revis email@example.com 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
December 2013 Edition
Well this is the last news article that I will write as Robert President of the Kitsap HBA. It Baglio has been a very enjoyable and rewarding year. I appreciate the The BJC Group opportunity to serve as 2013 President President and look forward to continued involvement in this wonderful organization. I would like to extend a special thank you to the HBA Staff and Teresa Osinski, the Executive Officer. She does an incredible job. Her hard work and efforts make the job as President a walk in the park. I would also like to thank all the Board Members for their service. Their effort and input at the monthly Board meetings and other events and activities is greatly appreciated. Thank you. Over the last two years, I have written a number of news articles focusing on the impact that regulations have on the business community and the construction industry. The reason I have written multiple articles on this same subject is because the efforts to revise, update, or draft new codes (aka increased regulations) is never ending. Between the Federal, State, and local governments, Water and Sewer districts, and Fire Departments the process is never ending. It is truly relentless. As soon as you address one code update or revision and feel that perhaps you got your point across and the code revision was toned down to minimize the impacts to the construction industry, another code update on another issue is being drafted and proposed. It never ends. And it must be understood that it takes multiple months to review the code, understand the proposed changes, compile the facts regarding the impacts of the changes, and present this information to the agency proposing the change. Also, I want to be perfectly clear, when a code is updated it always gets more stringent and increases the cost of construction. Things never get easier. The one thing that I would ask all politicians that have approval authority of code updates and revisions, please ask and demand that the following questions be answered: 1. Why are we doing this? Require data to support the proposal. 2. What is the problem we are trying to solve? 3. What are the financial impacts of the proposed changes? 4. Has this been presented and input solicited from the affected businesses? Without this vital information, one cannot make an informed decision as to the validity of the proposed code update. All new codes and updates/revisions to existing codes have impacts of one type or another. The cost of these impacts must be understood prior to making a decision as to approval or denial of the proposed update or revision. As I have stated in the past, our economic recovery is slow and tenuous. This recovery does not need to be hampered by senseless and unwarranted code updates. It is important to understand the complete ramifications of the proposed changes. All changes have consequences. Take the time to quantify and understand these consequences. It is to everyone’s benefit to get our economy back up to speed and stable again. Ask these questions and understand the impacts. Our economy depends on it.
In November I had the opportunity to speak to the Kitsap Housing Coalition at their Annual Membership CGP Meeting. It was a “tag team” approach with Brent Marmon Executive of Pacific NW Title sharing Vice President with the KHC the reality of Kitsap’s current real estate market; including what it means, how it compares to where we’ve been, and how far we are from where we need to be. The market is improved over the worst of times, but is actually fairly “flat” this year over last. As a follow up to Brent’s great information, I wanted to talk about barriers to affordability, why they matter, and what to do to combat them. When I ask what the barriers to affordability are, most respondents offer various examples of what are really the same symptom: price. Price isn’t the barrier; it is the outcome. So, if you try to combat “price” you’re working at the wrong end of the problem. So what is a barrier? A barrier may be a single thing (a new fee, a new code, a new tax) or it may be a conglomeration of things (regulations, taxes, exactions, fees, etc). Look at it this way: A barrier is any regulation/fee/obligation/exaction/code/requirement etc that impedes construction, or increases the cost of construction in an amount greater than the expected public benefit. The single most effective way to combat a barrier is to be an active citizen. That can manifest itself in big ways and small ways. The first and best place to start is by becoming a registered voter and voting every single time there is an election. Elected officials at each and every level of government (including the school board, fire commissioners, water commissioners, and others) pass regulations that will impact the affordability of housing. Value your vote and exercise it! The next step is to engage in the process. The Home Builders Association of Kitsap County serves many roles for our members, but one of the most important is our advocacy for the industry. However, it is rare that any other consumer advocacy groups submit comment in public process (whether in person or in writing). We often find ourselves the voice for the construction industry but also for the unsuspecting consumer. I rarely see any other organizations stepping forward to advocate for their population, and citizens that aren’t yet homeowners don’t even “know yet” to care about a proposed new fee, code, or mandate. Every proposed regulation or fee isn’t inherently bad. That’s not my message. But, no matter how well intentioned these codes may be, all come with known and unknown costs and consequences. Elected officials need to hear from you! They need to have the opportunity to understand all the pros and cons of all the policy issues before them. Today’s good idea, is tomorrow’s affordability barrier. To put this in perspective, keep a couple data points in mind. For every $1,000 increase in the cost of a home, at least 86 otherwise eligible buyers are knocked out of the market. Plus that $1,000 won’t be just $1,000. After carrying costs and other factors, every new fee inflates about 22% by the time it gets to the bottom line. In the same way we have all had to trim our budget and reorganize our own financial priorities, the same is true for society. Construction is the workhorse of our economy and yet our real estate market is flat year over year and far from a “normalized” activity level. The sensitivity of the market is far greater than it has maybe ever been; in terms of its ability to absorb costs and rebound from barriers. While there are many worthy ideas and concepts, until the market returns in earnest, these ideas and concepts can work against our collective goals of a vibrant tax base able to fund the essential services our great communities rely on and a home for every job to go to at night. Home ownership is a crucial piece of all thriving communities. I urge everyone to get informed and get engaged in the process. You can only combat barriers to affordability by combating the cause; not attacking the symptom.
December 2013 Edition
Government Affairs Committee
The 2013 elections are finally over, I hope you voted. I would like to thank all those who ran for election — those Judy Mentor Eagleson we endorsed and those we Mentor Company didn’t, those who won and 2013 Chair especially those who didn’t. Democracy is only successful when we take part in the process — by running for an elected position, getting involved in a campaign and especially by voting. Congratulations to those of you who were recently elected to office. Your peers have placed a great responsibility in your hands. It is now time to take stock, weigh the challenges and opportunities that lie ahead and identify the areas that you would like to change. All business must comply with state and federal laws. But those of us in the building and real estate industries may be unique in the sheer scale and scope of rules and regulations imposed upon us. Of course many of them are necessary; safety is paramount in our business, but there is no shortage of rules and regulations that are mind boggling. It is our desire to be free from unnecessary restrictions that hinder us from better serving our customers by providing them with safe, quality, affordable homes and buildings. As you look at issues that will come before you, we would like to encourage you to turn to your stakeholders and get their input — those are the groups that work in the potentially impacted industry every day. They can help identify the unexpected consequences of proposed regulations. Will a new regulation really create the desired outcome? Do we really need a regulation for every potential situation? The building and real estate industries were hit hard during the economic collapse and their recovery will be a key part in our overall economic recovery. As the Home Builders Association of Kitsap County, it is our goal to remain a pro-active, positive influence in the legislative, regulatory and civic arenas. Hopefully, by working together, real regulatory reform will occur that will help the building industry do what it does best and get our economy back on the right track.
Member Advantage www.nahb.org/ma
Pocket The Savings! 24 hour emergency clean-up
O T ff In he eri Se Be ng rv st ic e
The Biggest & Best Home Show West of Seattle!™ March 14, 15, & 16, 2014 Kitsap Fairgrounds and Event Center Three buildings! • Vendors inside and out! • Landscape displays! Great Seminars! • Master Gardeners on site! Habitat for Humanity’s Builder Surplus SALE! • On-Trend Guest Speakers The professional Expo staff at the Home Builders Association continue to work to make the Peninsula Home & Garden Expo™ the best choice for vendors and for the public. We will continue to have low admission rates and free parking again this year, plus interesting seminars and displays to draw folks in! All returning vendors must renew their booth contract by December 13th to guarantee their space. All new vendors will have their applications considered as soon as the returning vendor deadline is passed. Do not delay! Submit your application today for the very best placement options. We are always looking for new and interesting vendors. Is that you? Check out this terrific opportunity to meet Kitsap buyers. Our booths are competitively priced and we invest in significant Expo promotion throughout the Kitsap region. The Peninsula Home & Garden Expo™ is proudly brought to you by the Home Builders Association of Kitsap County, Kitsap Sun, Wave Broadband, and the Kitsap Credit Union. Mark your calendar for March 14, 15, and 16, 2014 for the Biggest and Best Home Show West of Seattle™. Visit the HBA website for details at www.kitsaphba.com and beginning in February monitor the details at www.kitsaphbahomeshow.com where the attractions, seminars, and vendors will be listed.
The Holidays are coming! Use your Member Advantage and save! Whether you’re buying for employees, clients, friends or family your membership gets you discounts you should not ignore! Did you know you can save 20% on all the FTD orders you place? Considering a new Dell Computer? There are great benefits from using your Dell NAHB Member Advantage. Omaha Steaks offer a wonderful resource for quality, tast y and unique gifts. Check out their stackable 10% discount. If you’ve never logged into the NAHB website, you will need to in order to access these great Member Advantage benefits. Just call the HBA and staff will be happy to give you your NAHB PIN number. Why spend more than you need to? Take advantage of your member advantage at www.nahb.org/ma.
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.
• Minor plumbing, electrical and carpentry • Minor roof repair and painting
Janitorial • Daily, weekly, monthly rates • Construction clean-up • Window and wall washing • Carpet shampooing • Floor stripping and waxing
• All phases offered
Tired of the surfaces in your home? Time to “GET CREATIVE!”
Power Parking Lot Services • Parking lot sweeping • Parking lot washing • Parking lot striping • Snow removal
373-4265 Commercial • Medical • Executive
We carry the industry’s top manufaturers:
360-598-3106 • 206-714-2948 22285 Stottlemeyer Road • Poulsbo (Next to Bond Rd. & Gunderson Rd.)
www.creativecounters.com Bonded & Insured License #CREATCI964BB
December 2013 Edition
Welcome New Members Catherine Jones/ Windermere Real Estate West Sound Inc. Catherine Jones 18570 Highway 305 Poulsbo, WA 98370 (360) 434-5598 firstname.lastname@example.org
The Pazooki Group Paul Pazooki PO Box 5479 Bremerton, WA 98312 (360) 710-3029 email@example.com And the SPIKE goes to...
Paul Pazooki The Pazooki Group
And the SPIKE goes to...
Randy Biegewald Randy Biegenwald CPA PS
DS Sales Associates/Artisan Stone Works John Sehmel PO Box 803 Port Orchard, WA 98366 (360) 731-1077 John.DSSales@gmail.com And the SPIKE goes to...
Robert Baglio The BJC Group
Thank You Renewing Members 36 Years Silverdale Plumbing & Heating Inc. Over 30 Years Custom Hearth (32)
Over 5 Years Port Ludlow Associates LLC (9) United Moving & Storage Sierra Pacific Windows TN Miller Remodeling Jose Tech Inspections
Over 20 Years Kitsap Lumber & Hardware, Inc (24) Over 1 Year Joe Gates Construction Inc. (23) Kelley Imaging Systems 20 Years Caseco Associates Inc. Gresham Pump and Drilling Inc. 1 Year Anniversary Over 10 Years Daves Septic Service R-B Enterprises & Associates LLC Maniilaq Services Inc. (19) Davis Exteriors D Lane Homes Co (13) A-1 Door Service Inc. Century Insurance Services, LLC 10 Years Ron Hemley Septic Installation Inc. Heartstring Construction Inc.
Unsure about the future of your health insurance? Get a free quote: Companies in Kitsap that are in construction related fields may find our health insurance to be a better quality and more affordable that the options available through the new Washington Exchanges. From arborists to waste disposal and beyond, our insurance program may be an option! It’s worth a quote, don’t you think? Please contact the HBA to receive an application. You do not need to be a member to get a quote for health insurance. However, if you decide to sign up for the insurance you do need to be a member and retain your membership in the HBA. The BIAW Health Insurance Trust is one of the very few association health programs considered to be bona fide by the Washington State Insurance Commissioner. Check it out!
Maximize Your Membership Update Your Directory Info: Is your company listing up to date on our website? Visit www.kitsaphba.com & check out the “Find A Member” tab. Does your listing include your logo, YouTube video clips, Facebook link, etc. You should add this and more! Call the HBA to learn how to maximize the website (360)479-5778. Purchase A Print Ad: Consider purchasing an ad in the 2014 Membership Directory. Doing business with members is good business and having an ad in the directory to highlight your support of the HBA is a great way to start. Ads are inexpensive and are sold by our publisher, E&M Consulting. They are calling members now. Be sure to take a minute to consider their offer. Please note! All members receive a listing in the directory for free! You do not need to pay anything additional to be in the directory. Ads are an option available to our members. There are many advertising options and some are very inexpensive. Don’t miss out! Anyone that purchases a single ad with a value of $599 or greater will receive a complimentary advertisement in two places on the HBA website. Purchase An Online Ad: All members can purchase ad space the HBA website. These ads are very inexpensive and can be placed in the category you specialize in. The website is a great place to advertise as it is accessible by the membership and the public looking for services. Set yourself apart and be seen on the membership directory of the HBA website. Ads are sold in 6 and 12 month increments.
Member Advantage www.nahb.org/ma
Pocket The Savings!
Daily E-mail Updates It’s FREE for everyone! Even if you’re not a Business Journal Subscriber
It’s easy to sign up! Oldest Shredding Company in Washington On-Site & Off-Site Paper Shredding Service Certificate of Destruction Provided 100% Recycling Program for All Shredded Material – Nothing goes to the Landfill
American Data Guard NAID AAA Certified Destruction Company
206-285-5955 • 800-699-6610 www.adgshred.com
Licensed, Bonded and Insured
Just visit daily.kpbj.com and sign-up for our emailer to start receiving breaking area news stories right in your inbox. For more information call (360) 876-7900.
Planning commission votes against new shopping center Controversial development proposed on Bainbridge will go to hearing examiner
Center, page 25
Village Green project opens in Kingston Area dignitaries take part in a ribbon-cutting ceremony that was part of the grand opening of the Village Green Senior Apartments in Kingston on Nov. 22. Village Green Senior Apartments is an affordable, independent senior living community that has 35 one- and two-bedroom apartments designed to serve seniors age 62 and over and people of any age with disabilities. The project is a culmination of a joint venture between nonprofit provider Martha & Mary and private developer Shelter Resources, Inc. The campus is part of the Kingston Village Green initiative to create a park, community center, senior living community and other amenities in the heart of Kingston. For information, call 425-423-0304 or check online at www.villagegreenseniorliving.com.
THE RESULTS ARE IN... Pacific Northwest Title is proud to announce the results of our 9th Annual Holiday Food Drive benefitting Kitsap County food banks. With support from local Kitsap County Real Estate and Lending Institutions, Local Chambers of Commerce and the community,
THE RESULTS BY AREA ARE:
• Helpline House on Bainbridge Island 915 pounds + $125.00 in cash
• ShareNet & Kingston Food Bank 310 pounds
• North Kitsap Fishline
3,694 pounds + $25.00 in cash
Kitsap County seeks volunteers for positions on Planning Commission, Board of Equalization
• South Kitsap Helpline
The Kitsap County Board of Commissioners is accepting applications for a representative from Commissioner District 2 (Central Kitsap) to serve on the Kitsap County Planning Commission, and representatives from districts 2 and 3 (South Kitsap) to serve on the Kitsap County Board of Equalization. Planning commission members work at the direction of the Department of Community Development in developing plans, implementing regulations, reviewing planning documents, ordinances and code revisions, and making recommendations to county commissioners. The Board of Equalization is a three-member citizens board that makes decisions regarding homeowner, commercial and personal property appeals of the assessed value of their properties. Appeals are heard year-round on Tuesdays and Wednesdays from 8:30 a.m. to 4 p.m. in the Kitsap County Administration Building in Port Orchard. Applicants should be familiar with Kitsap County real estate and appraisal practices. For more information including application materials for either volunteer opportunity, go to www.kitsapgov.com/volunteer/current.htm or contact Kitsap County Volunteer Services at 360-337-4650 or firstname.lastname@example.org.
• Bremerton Foodline
1,340 pounds + $300.00 in cash 640 pounds
• Central Kitsap Food Bank
4,525 pounds + $575.00 in cash
OF KITSAP COUNTY
Thank you for your support!
GRAND TOTAL – 11,424 LBS. AND $1,025.00!! SILVERDALE OFFICE
BAINBRIDGE ISLAND OFFICE
PORT ORCHARD OFFICE
360-692-4141 • 800-464-2823 2021 NW Myhre Road, Suite 300 Silverdale, WA 98383
206-842-2082 • 800-884-7636 921 Hildebrand Lane NE, Suite 200 Bainbridge Island, WA 98110
360-895-7799 1382 SE Lund Avenue, Suite 1 Port Orchard, WA 98366
December 2013 Kitsap Peninsula Business Journal • KPBJ.com 23
By Tim Kelly, Editor The Bainbridge Island Planning Commission recommended denial of a developer’s application to build an 8-acre shopping center by the busy intersection of State Route 305 and High School Road. While the commission’s 7-0 vote was welcome news for residents who formed the group Islanders for Responsible Development to oppose the project, it will be up to a hearing examiner to choose between the planning commission’s recommendation and a previous one from the city’s Department of Planning & Community Development. A department staff report recommended approval — although with a list of conditions the development would have to meet — of the site plan and conditional-use permit requested by Visconsi Cos. of Ohio. The Visconsi proposal includes seven buildings that would house a medical office, a bank, a Bartells drugstore and other retailers. The buildings would total 62,000 square feet of space, and it would be the largest commercial development on Bainbridge since the retail center anchored by Safeway was built more than 20 years ago along High School Road just west of SR 305. City planning manager Josh Machen said the hearing examiner will review the project in mid-January, and likely will issue a final decision in February. That decision could be appealed in Kitsap County Superior Court. The Visconsi plan, which got preliminary approval earlier this year from the city’s Design Review Board, has drawn strong opposition from many residents who are
concerned about increased traffic and congestion in the area and the environmental impact of clearing 800 trees for the project, and who also have questioned the need for businesses such as another bank and drugstore in the community. Machen said it’s an unusual situation to have opposing recommendations on such a project, and that very few projects are reviewed both by the planning commission and city planning staff. But he said that under municipal code, the developer had the option for a consolidated project review and chose that process. “We’ve never had a recommendation for denial from the planning commission,” he said. “At least not in my history, and I’ve been here 19 years.” Machen explained that the planning commission actually submitted a “dual motion,” with the first part recommending denial of the Visconsi development, plus a second motion for adding conditions to the project if it is approved by the hearing examiner. The different assessments of the planned retail development have to do with whether it complies with Bainbridge Island’s Comprehensive Plan. “Our staff recommendation will continue to be for approval because we believe it does indeed meet the requirements that are in place,” Machen said. In their report recommending approval, however, planning staff noted that the city’s role is only to verify that proposed commercial uses are allowed under current zoning, and the city “does not have the authority to dictate what type of retail or professional service will be permitted in a given development project.” The planning commission typically holds only one meeting on a project application, but there were three meetings
Kitsap HBA Remodelers Council announces 2013 REX Award winners Kitsap Home Builders Association (HBA) Remodelers Council announcesd the winners of the prestigious Remodeling Excellence, or "REX" Awards. This year's applications were numerous and diverse. HBA members can be proud of the professional and cutting edge expertise of its Remodelers.
The BJC Group • Commercial $100,000-$250,000
A Kitchen That Works LLC • Judges Choice Award
Joe Gates Construction • Residential Kitchen Over $60,000
24 • Kitsap Peninsula Business Journal • KPBJ.com December 2013
• Decks, Gazebos, Porches and Outdoor Kitchens • Residential Addition Over $175,000 • Residential Whole House $225,000-$300,00 • Residential Whole House Over $300,000
Wayne R Keffer Construction • Residential Bath Under $12,000 • Residential Bath $12,000-$25,000 • Residential Kitchen $30,000-$60,000
Sun Path Custom Construction • Historic Renovation/Restoration • Residential Bath Over $25,000
Sentinel Construction & Consulting
SF Kafer Construction
• Existing Basement, Carport, or Garage Remodel
• Exterior Finishes
Poulsbo auto dealer, philanthropist John Hern dies in Arizona By Lary Coppola John Hern, who was known as much for his philanthropy as he was for selling new Fords, died Nov. 24 in Chandler, Ariz., where he and his wife had made their home after retiring. “It is with great sorrow and regret that I announce the passing of my father, John Hern,” his son, Rick, a car dealer himself, announced on Facebook the day of his father’s death. “Many of you know of his enduring medical battles. He is now at peace and no longer suffering. Thank you for your continued prayers.” At one time, Hern’s Courtesy Auto Group — which included Ford, Chevy, Mitsubishi and Suzuki dealerships, along with a large used car operation and a major RV outlet — lined Poulsbo’s Viking Avenue from one end to the other. He was a respected entrepreneur, a linchpin leader of the Poulsbo business community, and avid community supporter. In his heyday, Hern was Poulsbo’s single largest taxpayer and sales tax generator. Over the years, he had also owned Ford dealerships in Gig Harbor, Port Townsend and Sequim in
addition to his Viking Avenue empire. Hern, who was 70, had been battling health issues for several years, including diabetes. The lingering economic recession, which was marked by several years of declining car sales nationwide, led to his decision to close Courtesy Auto in that states: “New commercial centers should be considered only after detailed analysis of the economic impact of the new development shows there will be no significant, adverse impact on the existing commercial centers, including Winslow.” The report states that “The proposed shopping center does not conform to the comprehensive plan in some very basic ways, and it is inappropriate, considering the characteristics of the site and the existing development on neighboring properties.” The planning commission also acknowledged the high level of public opposition to the Visconsi project. In its conclusion, the report says “citizens designed and put their trust in the Comprehensive Plan to ‘preserve the special character of the island.’ Clearly, in the view of the hundreds of citizens responding to this proposal, this development does not meet that test.”
to revive the Poulsbo Marine Science Center. But Hern will be remembered not just for his influence as a local businessman, but for his generosity as well. He was honored as Poulsbo’s Man of the Year, supported the city’s Third of July fireworks display, and he and Terri were active in the Olympic College Foundation up until they moved to Arizona. Teri Hern served on the board of the foundation for many years, and the couple played an integral role in Olympic College’s expansion into Poulsbo. They contributed funding for the college’s lecture hall — known as Hern Hall — for student scholarships, and equipment for the physical therapy assistant program among other things. “John and Teri Hern have made a significant, personal impact on an entire generation at Olympic College,” OC president David Mitchell said when the couple retired. “Their philanthropic legacy will continue to impact future generations of local college students. John and Teri’s commitment to Olympic College, higher education, and their local community will be long remembered in Kitsap County.”
McCabe named to head Freedom Foundation Tom McCabe has been named by the Freedom Foundation as its new chief executive officer. He succeeds Bob Williams, who held that post for many years after leaving the state legislature. McCabe, a staunch conservative who is perhaps best known for his take-no-prisoners political style, brings a track record of extensive nonprofit and political experience to the Olympia-based conservative think tank. After being appointed by President Ronald Reagan as director of congressional affairs for the U.S. Veterans Administration in Washington, D.C., McCabe moved to Washington state, where he served as Director of Public Affairs for the Washington Association of Realtors. From there he went on to head the Building Industry Association of Tom McCabe Washington (BIAW), which he grew from 2,500 members to more than 13,500 — making it one of the largest builder groups in the country affiliated with the National Association of Home Builders. He increased revenue from $400,000 to over $10 million a year, and in 2006 was recognized by the Freedom Foundation with its prestigious Friend of Liberty Award. While with BIAW, McCabe turned the organization into a major player in statewide politics, and a group to be feared by liberal legislators and their supporters. He wasn’t afraid to openly support conservative candidates and causes with as much money as legally possible, and the organization never backed down from a legal fight, prevailing more often than not. He will assume his CEO duties in December.
North Kitsap Warehouse For Sale 5654 Minder Road, Poulsbo • Kennedy Business Park • Near Poulsbo along Bond Road • 5,400 SF building • One level, built in 2002 • Includes use of covered loading dock • 2 drive-in doors • Priced at $295,700 • Call for information package
For more information contact: Victor C. Ulsh, CCIM email@example.com
360-479-6900 • 800-479-6903
December 2013 Kitsap Peninsula Business Journal • KPBJ.com 25
from page 23 on the Visconsi project. The commission’s findings, announced at a meeting Nov. 14, outlined safety concerns about the impact of increased traffic on three areas: • the existing access road to Pro Build, a two-way street with three lanes used by large trucks and trailers and contractors, which goes through the middle of the shopping center site that’s planned to be a pedestrian-friendly area; • Pollys Lane, which is an entrance off High School Road into the Stonecress residential area and would be utilized for access to the Visconsi development; • High School Road and SR 305, one of the busiest intersections on the island, which could be impacted by a backup of eastbound vehicles waiting to turn left from High School Road into the shopping center. The commission also noted a section on land-use goals in the Comprehensive Plan
Photo courtesy Hern family
John Hern, longtime owner of Courtesy Auto Group in Poulsbo, died Nov. 24 in Arizona.
2011 and retire to Arizona with his wife, Teri. Hern passed away on the couple’s 51st wedding anniversary. He had a well-earned reputation as a nononsense businessman, but one who cared very deeply about both his employees and the town that had been so good to him for so many years. When he closed the dealerships, Hern’s largest concern was the impact on the community. Hern was a strong advocate for the revitalization of Viking Avenue, establishing his first dealership there after the old Ford store there had closed, and it was just a two-lane road with no sidewalks. He was a firm believer that Viking Avenue held the key to revitalizing that portion of the city. He actively helped draw Regal Cinemas and Washington Tractor to the thoroughfare. Before closing his business in 2011, Hern, Mitch James of James Lumber/Ace Hardware, and Viking Ave. Investments, which owns the former Poulsbo RV property, hired Olympic Property Group president Jon Rose as a consultant to develop a revitalization plan. The Herns were also active in the efforts
26 • Kitsap Peninsula Business Journal • KPBJ.com December 2013
Tax issues for businesses to consider before year ends By Randy Biegenwald Certified Public Accountant Some thoughts on business tax planning. If you are a cash-basis calendar year taxpayer, consider paying any outstanding deductible expenses before the end of the year. This is based on the theory that due to the time value of money, taxes deferred are cheaper than taxes paid now. If you use a credit card, it still counts as paid this year. Do not do this if you expect your incremental tax rate to go up next year. On the personal side, if you itemize but don’t normally have enough medical to exceed the 10 percent (7.5 percent if you or your spouse are over 64) AGI limit and you have unusually high uninsured medical expenses this year, getting them paid off, even if you have to use credit, might benefit you. This approach is also often popular with your care providers. Section 179 of the Internal Revenue Code allows an upfront depreciation deduction of most business equipment placed in service during the year. This is commonly known as the expensing election and this year the maximum that can be expensed has been raised to $500,000, of which $250,000 can be “qualified real property.” There is a phase-out of the expensing limit if you place in service too much qualifying equipment and that phaseout begins at $2 million this year. Also, the 50 percent bonus depreciation deduction has been extended through 2013. The expensing election is severely limited for most passenger vehicles under 6,000 pounds gross vehicle weight. For most SUVs over 6,000 pounds GVW the expensing election limit is $25,000. Keep in mind, any amount of equipment purchases expensed can no longer be depreciated. Often clients ask if they should buy equipment to save taxes. The short answer is, not if the after-tax cost of the equipment does not exceed its economic benefit. Next year the 50 percent bonus depreciation is eliminated and the expensing election is reduced to $25,000 for all qualified equipment, and the phaseout amount is lowered to $500,000. If you are affected by these limits and you intended purchasing equipment in the near future, consider buying it before the end of the year. Another small reason to purchase equipment this year is that the sales tax rate in Kitsap County is going up to 8.7 percent effective Jan. 1, 2014. Again, if your tax bracket is low (we are still in a
sluggish recovery) and you expect it to be higher in the future you may not want to do this, especially if your equipment is financed. Small business retirement plans work well for many small businesses and should be considered as a way to defer taxable income. SEP and SIMPLE plans are easy to set up, have low overhead and don’t have Form 5500 filing requirements. Unfortunately, SIMPLE plans must be set up by Oct. 1. However, if you find yourself at the end of the year in a higher than expected tax bracket, a SEP can be set up and funded as late as the due date plus extensions of your tax return. Be advised that the IRS has increased its audit activity relating to several business issues including hobby losses, the employee vs. contractor issue, and employee reimbursements. Also the IRS is focusing on reasonable compensation for 2 percent owners of S corporations and other “schemes for avoiding of payment of Social Security and Medicare taxes.” Perennial
losses claimed on personal returns on schedules C and F (businesses and farms) are getting more attention. Remember, there has to be a reasonable profit potential. Be careful about unsubstantiated business expense reimbursements to employees. Giving cash for travel or a fixed amount to an employee for business use of their personal vehicle without substantiation will be treated as wages. Contractors that are defacto employees due to the facts and circumstances of their employment may be treated as such. I feel I should say something about the Patient Protection and Affordable Care Act (Obamacare). I am sure most employers already know that the employer mandate to provide health insurance coverage to employees has been postponed until 2015 and that it does not apply to small employers with fewer than 101 employees. It does affect employers that do provide coverage. For employer-provided health benefits to not be treated as compensation and not be subject to payroll taxes and
withholding, those benefits must be provided through a qualified health plan. The Affordable Care Act specifically says that the term “health plan” does not include benefits that are not subject to state insurance regulation. If you provide health insurance through a qualified health plan, your insurer will adjust the plan to meet the federal requirements and bill you accordingly. Or cancel your policy. The Washington state insurance exchange website (www.wahealthplanfinder.org) has a section for small employers. I tried it for my practice and was told none were available. Maybe you will have better luck. In closing I believe that given the current political situation, the law soon will be changed. How, I don’t know; your guess is as good as mine. • Randy Biegenwald is a Certified Public Accountant
Tax credit for hiring vets expires, likely to get renewed By Rodika Tollefson A tax incentive for employers hiring veterans will expire at the end of December, but the longtime incentive program is likely to get renewed next year by Congress. The Work Opportunity Tax Credit includes incentives for employers who hire employees in certain categories, including individuals who receive public assistance and military veterans. In 2011, Congress made changes to the program by adding new categories to the veterans group. The amounts for the 2012-13 credits were also increased to up to $5,600 for qualified veterans and up to $9,600 for veterans with a service-related disability. Employers have 28 days from hire date to file for the credit, which is administered through the state Employment Security Department. Generally, the ESD continues taking applications even after the credit lapses, because Congress makes it retroactive after renewal. Bill Tarrow, Employment Security Department deputy communications director, said WOTC is typically passed for one to three years and sometimes Congress makes changes, such as the higher credits in 2012. The program has been in place since 1996 and last year had the longest hiatus after expiration — all of 2012 — with another hiatus in the past lasting 11 months. But normally, Congress renews the program after one to four months, and given the history of the WOTC, Tarrow said it was likely to be renewed again.
The state received 56,000 applications this year for the credit, on pace with previous years’ numbers. The application process is easy, Tarrow said, but generally only about 50 percent of applications qualify. One reason is because many companies file for all new hires without knowing who will qualify, and another reason is the very specific qualification criteria. About 70 percent of the new employees for whom the credit is given are in the public assistance category. Tarrow said WOTC tends to be for workers in entry-level jobs and in sectors such as retail and hospitality, but in the case of veterans, the jobs are more in the medical, IT, manufacturing and management fields. “I think in general employers in this state and across the country are interested in hiring veterans anyway,” Tarrow said. “They tend to have high integrity, they’re hard workers and they show up to work on time.” Margaret Hess, administrator for WorkSource Kitsap County, said veterans have a lot of transferable skills and have an especially high recruitment rate by federal contractors because of their ability to get security clearances fast. In Kitsap, the Navy shipyard is the largest veteran employer, but many other businesses, including in the manufacturing sector, are veteran-friendly. “They’re a proven commodity in that they have a strong work ethic, they’re trained and have a steady work history,” Hess said.
Todd Wagner, a 20-year Navy veteran who’s been working as the local veterans employment representative at the Kitsap WorkSource for more than four years, said he’s noticed an increased interest from local employers. He works with the businesses to find qualified veterans and also helps them navigate available programs — including a VA rehabilitation program that pays a veteran’s wages for a short time. He said among the qualities that distinguish vets include discipline and time management. “The things instilled in a person in the service is compatible with a corporate environment,” he said. Veterans receive priority referrals to the approximately 16,500 jobs typically listed on the state’s employment website, Go2WorkSource. This year, WorkSource served 1,065 veterans through October, with 1,513 served in 2012 and 1,980 in 2011. The reduced number follows a similar trend in reduction in services for job-seekers on unemployment insurance, Hess said. In addition to job placement, WorkSource offers veterans services such as transition assistance and job development. The agency also works closely with the Employment Security Department. Wagner, who frequently goes around the county to talk to employers, encouraged anyone interested in hiring veterans to contact him at (360) 337-4752.
Streamlined sales tax: Why the big deal By Rodika Tollefson The topic of an online sales tax is as old as e-commerce itself and has been debated in Congress for years. Currently, there’s no federal law requiring online and mail-order retailers (collectively called remote sellers) to collect taxes from customers in those states where the companies have no physical presence. Shoppers have become savvy too: Many drop by their local retailers to window shop, then order online to take advantage of the tax-free buying. Many states, including Washington, have a so-called use tax — imposed on taxfree purchases that would normally have a sales tax — but compliance is usually voluntary. In states that have personal income tax, it’s supposed to be reported on the income returns. In Washington, businesses are supposed to report and pay use tax with their business-and-occupation tax filing — and the state is not shy about sending notices to businesses it suspects of having unreported use tax. The problem is that states are losing a lot of money because of people buying from online and catalog retailers. Some studies estimated the loss at as much as $23 billion in 2012. To try to remedy the problem, at least in part, 44 states along with the District of Columbia, local governments and businesses worked to create a Streamlined Sales and Use Agreement. The purpose of the agreement is to minimize administration costs on retailers collecting the tax. The agreement encourages online and mail-order retailers not obligated to collect the tax to do so voluntarily in the states that are part of the agreement. To participate, in turn, states have to use streamlined sales tax, also called destination-based. That means they have to require sales tax rates to be collected based
the first year (starting with the third quarter of 2008), and Poulsbo, $39,143. Only Bremerton, Port Orchard and the county received mitigation Kitsap County $2,470,828 payments from the state: a total of Bainbridge Island $555,063 $20,085, $36,289 and $122,316, Bremerton $907,063 respectively (but all have netted Poulsbo $349,074 positive to date). Back in 2008, about 1,100 online Port Orchard $190,606 Gig Harbor $1,024,162 and mail-order businesses voluntarily Kitsap Public Benefit $2,752,718 participated in the agreement. Now, Transportation Area (corrected from print edition) that number is at 1,400. According to the Streamlined Sales Tax Governing (Kitsap Transit) Board, together those retailers have collected more than $700 million in on the point of destination instead of sales taxes. origination. Currently, 24 states have Congress, in the meantime, hasn’t adopted the streamlined system. stopped working on the issue of remoteWashington state adopted destinationsales tax at the federal level. Some based tax in July 2008 (services and some lawmakers have lobbied for it for years but types of sales are exempt). While many bills have routinely died. retailers were not impacted by it unless they The issue goes all the way back to 1992, sell online or ship products out of state, any after a Supreme Court ruling in Quill Corp. business that offers in-state deliveries or onvs. North Dakota. The state had tried to site services had to change its systems to impose use tax on the company, a mailcomply. order office supplies retailer based in When the Legislature approved the new Illinois. The Supreme Court ruled that law in 2007, it also created a compensation collecting the tax was not inherently system for jurisdictions that stood to lose unconstitutional, but left existing rules in revenues from the change. The place while encouraging Congress to compensation is temporary until new consider the issue. revenues generated from the streamlined tax offsets the losses, and is based on actual losses. Locally, the jurisdictions that were expected to lose the most were the city of Poulsbo ($95,000 the first year) and the city of Gig Harbor ($200,000), a study conducted prior to the new legislation estimated. Instead, Kitsap Peninsula Business Journal calculations based on data from the Department of Revenue show that Gig Harbor netted a benefit of $357,911 in Net revenues by local jurisdictions from implementation of streamlined sales tax
By Kelly Spors, OpenForum.com If your business operates as a partnership, such as an S corporation or LLC, your odds of being audited appear to be rising. The Internal Revenue Service plans to shift its business auditing focus away from corporations and concentrate more on “pass-through” entities in coming years, Faris Fink, head of the IRS’s Small Business/Self-Employed Division, recently told conference attendees. The reason: Partnerships are becoming more complex, and the IRS sees them as a type of business ripe for tax-fraud potential. “The Service has for a long time focused its energy on corporations,” Fink said at the American Institute of CPAs’ National Tax Conference, according to Bloomberg. “Frankly, we’re a little bit behind the curve in getting around to developing a partnership strategy.” According to IRS data, about 95 percent of businesses are structured as “pass-through” entities, such as S corps, LLCs or sole proprietors, where business income flows down to the individuals who pay taxes on it. The number of these types of entities grew 15.3 percent between 2007 and 2011, Bloomberg reported. Overall, partnerships have gotten more complex and sometimes have thousands of partners and various tiers, making them more susceptible to fraud, Fink said. The IRS has been training its auditors on how to better evaluate these structures and identify red flags. The IRS has audited very few partnership returns — only 0.5 percent in 2012 — according to the IRS Data Book. That’s compared with 1.6 percent of corporate returns and 1 percent of individual taxpayer returns. In other small-business tax audit news, the IRS also recently announced that it would allow small businesses with under $10 million in revenues to request fast-track settlement, similar to what large and midsize businesses have been able to do. The new rule would allow small businesses to appeal their audits early and get resolution within 60 days rather than having to wait until an audit is complete, which can take years, according to CNN Money.
December 2013 Kitsap Peninsula Business Journal • KPBJ.com 27
IRS gearing up to audit more S corps and LLCs than ever before
And Congress did. The latest effort is the Marketplace Fairness Act, which the Senate passed in May by a vote of 69-27. A similar bill was introduced in the House in February and has been sitting in a Judiciary subcommittee since April, according to congress.gov. The law would only require “remote sellers” to collect the tax if they have annual gross receipts over $1 million and only in the states that follow the streamlined tax agreement. The National League of Cities called on the House in September to move the bill along, but opposition — led by eBay — has been strong as well, including by states that don’t have sales tax (currently, no sales tax is collected in Oregon, Alaska, Montana, Delaware and New Hampshire.) In June, Rep. Bob Goodlatte, R-Va., the chair of the Judiciary Committee, said it was doubtful the bill would pass and that House Republicans were creating their own version. It may be a while before it gets traction, however — the lawmakers are expected to focus on healthcare-related and budgeting bills when they return from their recess. The online legislative tracking tool GovTrack.us from Civil Impulse, LLC gives the current version of the bill a 67 percent chance of passing committee and 28 percent of being enacted.
Time to check your progress toward your retirement goals By Calvin Christensen Now that another year is ending, it’s a good time to take stock of where you are on your journey toward financial security. Of course, you could find many different “measuring sticks” to assess your progress, but you can certainly gain considerable information just by asking yourself some basic questions. Here are a few to consider: How close am I to my retirement goals? Your comprehensive investment strategy should include a reasonably good estimate of how much money you will eventually need to sustain the retirement lifestyle you’ve envisioned. At least once a year, you should evaluate how much closer you’ve gotten to your goals than the year before. Am I making sufficient progress toward my goals? When assessing your progress, try to determine if your portfolio is properly allocated between stocks, stock-based vehicles, bonds, government securities, certificates of deposit and other investments. If you're “overweighted” in a particular asset class, such as cash, you may be impeding your ability to move toward your goals. Am I adhering to my investment strategy? To stick with your investment strategy, you need to invest at regular intervals
28 • Kitsap Peninsula Business Journal • KPBJ.com December 2013
and meet regularly with your financial professional to review your progress and make adjustments — such as rebalancing your portfolio — when necessary. Of course, even with regular progress reviews and portfolio rebalancing, it can be challenging, psychologically and emotionally, to stick with a strategy. For example, during any given year the financial markets could be down, and your results might be disappointing. Nonetheless, if you have built a diversified portfolio containing quality investments, and your portfolio is well suited to your own risk tolerance and time horizon, you don’t necessarily need to make changes following a down year in the markets. What aspects of my life have changed in the past year? Your investment strategy should be based entirely on your individual needs and circumstances — so if these have changed during the past year, you may also have to adjust the way you invest. Consider any and all changes in your life — marriage, new children, divorce, remarriage, new job, new home, etc. — and then try to determine what impact these changes might have on your long-term financial strategy and if you need to adjust that strategy in response. Have I changed my thinking on my
retirement goals? Over time, you might undergo some changes in your thinking about retirement. For example, perhaps you’ve decided that you no longer want to retire early and travel the world; instead, you’ve discovered a growing desire to open a small business or do some consulting. Any significant changes you make to your retirement plans will likely have a big effect on your savings and investment strategies, so
you’ll want to incorporate these changes into your planning as soon as possible. By asking, and answering, these questions at the end of each year, you should always have a good sense of where you are in pursuit of your long-term goals — and what you need to do to bring the realization of those goals closer to reality. • Calvin Christensen is an Edward Jones financial advisor in Silverdale.
Short-term vs. long-term investments: What’s the difference? By Ryan Gilhuly At various times, many people may feel frustrated by the performance of their investments. For example, they expect growth, and they don’t get it — or they think the value of their investment won’t fluctuate much, but it does. However, some of this frustration might be alleviated if investors were more familiar with the nature of their investment vehicles. Specifically, it’s important to keep in mind the difference between long-term and short-term investments. What defines long-term and short-term investments? Long-term investments are
those vehicles that you intend to hold for more than one year — in fact, you generally intend to hold them for several years. On the other hand, you usually hold short-term investments for one year or less. You can find several key distinctions between short-term and long-term vehicles. Here are a few to consider: They carry different expectations. When you purchase an investment that you intend to keep for many years, you may be expecting the investment to increase in value so that you can eventually sell it for a profit. In addition, you may be looking for Investments, page 29
So Much Planning Goes into Retirement.
Have You Thought About Your Taxes As Well? It’s likely that your retirement income may come from many sources, such as Social Security, pension distributions, a 401(k) or IRA withdrawals. That’s why, if taxes are a concern for you, it’s important to choose the right investments for your portfolio. At Edward Jones, we have many options that can give you more control over your taxes, so you can enjoy what you’ve worked so hard to achieve. Edward Jones, its employees and financial advisors cannot provide tax advice. You should consult with a qualified tax specialist for professional advice on your specific situation.
Call today to see how our unique, face-to face approach makes us best suited to help long-term investors meet their current needs and future financial goals.
Your local Edward Jones financial advisors: Michael F. Allen,
10706 Silverdale Way NW Suite 101 Silverdale
18887 Hwy 305 NE Suite 100 Poulsbo
2416 NW Myhre Rd Suite 102 Silverdale
19740 7th Ave NE Suite 114 Poulsbo
360 779-6123 1-800-248-6123
3500 Anderson Hill Rd Suite 101 Silverdale
Erin R. Abrigo
Glenn Anderson, AAMS
5775 Soundview Drive Suite 203-C Gig Harbor
3100 NW Bucklin Hill Rd Suite 115 Silverdale
23781 Hwy 3 Suite 101 B Belfair
555 Pacific Ave Suite 101 Downtown Bremerton
19032 Jensen Way NE Poulsbo
360 373-1263 1-888-373-1263
Edward A. Finholm
Jeff Thomsen, AAMS
25960 Ohio Ave NE Suite 101 Kingston
423 Sedgwick Rd Suite 121 Port Orchard
3276 Plaza Rd NW Suite 112 Silverdale
5971 Hwy 303 N Bremerton
600 Kitsap St Suite 102 Port Orchard
8202 NE State Hwy 104 Suite 106 Kingston
2299 Bethel Ave Port Orchard
360 876-3835 1-888-688-7817
360 871-0998 1-800-995-0242
360 779-7894 1-866-779-7900
360 475-0683 1-888-475-4450
8079 E Main St Manchester
4275 SE Mile Hill Dr Suite A Port Orchard
2135 Sheridan Rd Suite E Bremerton
Retirement for the self-employed assets. The last thing they want to do is find themselves in a position where they are having to sell assets at a discount in order to come up with cash to keep operations going. If you think this is unsettling as a business owner, then try doing this as a person struggling with the same cash flow concept in retirement. When you are working you can make mistakes and recover. On ce you have retired, you have less time to recover from a significant error. Ultimately the two primary concerns most small business owners have as they begin to think about retirement are: How will we pay for health care? and Have we saved enough money to provide cash flow for us to maintain our standard of living for a very long time? Earlier this year, Fidelity Benefits Consulting estimated that a couple who retires at age 65 is estimated to need $220,000 to cover medical expenses through retirement. This figure does not include any costs associated with nursing home care. I sometimes joke that the best retirement plan is to run for congress because according to Wikipedia our elected leaders become vested for a pension after five years of service. What I think many of us find really attractive about a pens ion is the idea of the guaranteed income that it provides. As an entrepreneur, once you have retired, what you have is what you have, and chances are you probably do not want to go back to work if the stock market performs poorly or interest rates rise rapidly. Most of the people we serve don't seem interested in running for public office in order to secure a pension. (Although I have a feeling many of the people we serve would do an outstanding job if they did run for public office.) As an entrepreneur you might want to consider creating your own "private pension plan" to solve your cash-flow needs. In order to accomplish this, you could ladder single-premium and fixed-deferred
hold for the long term, you probably have a long-term goal in mind — such as building resources to help pay for a comfortable retirement or leaving a legacy. On the other hand, a short-term investment would be more appropriate if you know that you will need a certain amount of money at a certain time — perhaps to purchase a car or to fund a vacation. They carry different risks. All investments carry some type of risk. One of the biggest risks associated with long-term investments is volatility, the fluctuations in the financial markets that can cause investments to lose value. On the other hand, short-term investment vehicles may be subject to purchasing power risk — the risk that your investment’s return will not keep up with inflation. As an investor, you’ll probably need a mix of long-term and short-term vehicles. By knowing the differences between these two categories, you should have a good idea of what to expect from your investments — and this knowledge can help you make those choices that are right for you. • Ryan Gilhuly is an Edward Jones financial advisor in Port Orchard.
from page 28 the investment to provide income. When you purchase a short-term vehicle, you are generally not expecting much in the way of a return or an increase in value. Typically, you purchase short-term investments for the relatively greater degree of principal protection they are designed to provide. They meet different needs at different times of life. You will have different investment needs at different times of your life. When you’re young, and just starting out in your career, you may require a mix of long- and short-term investments. You might need the shortterm ones to help pay for a down payment on a home, while the long-term ones could be used to help build resources for your retirement. But later in life, when you’re either closing in on retirement, or you’re already retired, you may have much less need for long-term vehicles, with a corresponding increase in your need for short-term investments. They can satisfy different goals. If you purchase investments that you intend to
annuity contracts to create a guaranteed cash flow. After all, a pension is nothing more than an annuity contract. In today's inte rest rate environment you could expect a cash flow ranging from 5 to 7 percent depending on the choices you select. The emphasis when creating a private pension plan is to solve for cash flow in the securest way possible so that you do not have to worry about stock and bond market volatility when providing for your retirement income needs. When you consider mortality risk and treat it as an asset class, yo u can make some calculated estimates in order to shift the burden of lifetime income from a "what if" to a "guarantee" that the insurance companies can provide. An annuity contract is the only way we can use the word guarantee when talking about future income. The secret to making this work is to for you to get into the insurance companies’ pockets as quickly as possible and then live a really long time. In surance companies are pretty darn good at looking at large groups of people to understand life expectancy risk, but they generally do not look at each individual’s life expectancy. If you are in good health and have a history of longevity in your family, then you might want to consider this type of planning. Once you solve for an inflation-adjusted retirement cash flow, then you can take on market risk without having to worry about a market correction disrupting your lifestyle.
As much as we all hate paying for insurance, I think we all hate paying the consequences of not having the right insurance even more. Obviously many solutions exist for retirement income, but for those entrepreneurs who understand cash flow and its importance, then creating a "private pension" is probably one of the safest ways you can accomplish this goal. Sometimes because entrepreneurs tend to be cautiously optimistic, they take on more risk than is necessary to accomplish their goals. You've worked too hard, accomplished too much and have too much at stake to make a financial mistake at this point in your financial life. Remember, "A bird in the hand is better than two in the bush." • Editor’s Note: Jason Parker is the president of Parker Financial LLC, a fee-based registered investment advisory firm working primarily in wealth management for retirees. His office is located in Silverdale. The opinions and information voiced in this material are not intended to provide specific advice or recommendations for any individual, and do not constitute a solicitation for any securities or insurance products. All information is believed to be from reliable sources; however, no representation is made as to its completeness or accuracy. Please consult your trusted professional for advice and further information. Parker is insurance-licensed and holds his series 65 securities license. He offers annuities, life and long-term care insurances as well as investment services. Follow Jason’s blog at www.soundretirementplanning.com.
December 2013 Kitsap Peninsula Business Journal • KPBJ.com 29
By Jason R. Parker I have had the good opportunity to work with many people who are retired business owners. Entrepreneurs tend to be cautiously optimistic and are very savvy. They have done a great job building their businesses, making money, and adding value to people’s lives. Often times, though, they have not had the time nor inclination to really dive into personal finance. They just make it, save it and keep working harder and harder. Then one day they realize they don't want to work forever. One of the questions I often ask in my first meeting is, "If you could wave a magic wand and accomplish just one thing by us meeting today, what would it be?" The common reply usually has something to do with the words clarity and confidence. Sometimes I'l l get the good-humored reply of, "I want to earn 20 percent per year." What entrepreneurs really want when it comes to their financial lives is an objective and honest assessment of where they stand. They want to know if the numbers will work. They want a plan that gives them clarity so they can have the confidence to retire without having to worry, so they can experience the freedom they have worked hard f or. What they do not want is a financial adviser who is out to sell them a financial product. Entrepreneurs are looking for answers to questions and solutions to problems. Entrepreneurs understand the concept of cash flow better than most people because they know they can have all the assets in the world, but at the end of the day, if they don't have cash and income they may find themselves in trouble becau se banks lend on income, not
30 • Kitsap Peninsula Business Journal • KPBJ.com December 2013
The merits of Bring Your Parents to Work Day By Julie Tappero Hey Mom and Dad, where were you on Nov. 7? If your child is a Millennial with a job, there’s a chance you went to their workplace for Bring Your Parents to Work Day! If you’ve been in the workforce as long as I have, you p r o b a b l y remember when the Take Your Daughter to Work Day started. We wanted to inspire our daughters to believe that all opportunities were available to them in the workplace, beyond the stereotypical female-held positions. Once those barriers were broken, we realized there was value in all of our children seeing what their parents did at work, so we opened it up to our sons as well, and it became Take your Daughters and Sons to Work. Not to be outdone, animal lovers then created Take Your Dog to Work Day, which was held this year on June 21. So what’s left? Yes, you’ve guessed it. Bring Your Parents. Bring Your Parents to Work Day was Nov. 7, and believe it or not, it took place in 14 countries around the world. Is this a silly idea, or one with real value? Those participating argue that in this changing world of work, it’s an idea whose time has come. Millennials were born between 1981 and the early 2000s and are generally the children of the Baby Boomers. Much has been written about the differences with this generation versus their parents, who have at times been referred to as helicopter parents. In our business, we have seen examples of these hovering parents. We’ve had parents come into the office to inquire about employment on their child’s behalf. We’ve had parents argue with us about the employment process and paperwork required. We’ve had to tell them they can’t sit in on the interview. We’ve had parents call to discuss their child’s work performance and status. Clearly, many parents have a strong interest in their children’s jobs and their futures.
One last paradigm shift is that many of today’s jobs did not exist yesterday, and there are many parents that simply don’t understand what it is their children do. In reading comments recently on this subject, one person said when he talked of his IT job working with routers, his dad thought he was a carpenter. Another Python developer said his mom thought it meant he worked with snakes. Even more traditional jobs have evolved. Today’s administrative assistant’s tasks are very complex and likely won’t involve making coffee and taking dictation. Not to mention the jobs that have titles like Director of First Impressions, Word Herder, Manager of Reputation, and Talent Director. What the heck do they do? A recent survey by LinkedIn found that one-third of parents surveyed didn’t understand what their children did. If parents don’t know what their children do on the job, how are they going to brag about them? As parents, we spend many years preparing our children for the world of work. It’s only natural that once we’ve launched them from the nest into their career, we’d have some curiosity about what that looks like for them. Just as we wanted to go to Back to School Night, meet the teacher, see their desk, and meet their new friends, we want to see that they are going to be successful in this new endeavor. The tech companies seem to get this, and they are early adopters of Bring Your Parents to Work. Google jumped on the bandwagon a couple years ago, and LinkedIn is a prime sponsor of it, complete with a website offering ideas on how to implement it in your business. What is the value to the company for doing this? The LinkedIn survey showed that 25 percent of Millenials ask their parents’ advice before accepting a job offer, and 50 percent of parents felt they could help their child more if they better understood what they did on their job. Companies know that a parent’s positive support and advice can be an important tool in their child’s success in their job. We parents
know that our job of mentoring and parenting doesn’t end when kids turn 18 and move out, but it’s really a lifetime commitment. Being able to effectively mentor our children while they navigate their worklife can benefit not only our kids, but also help to increase the success of their companies as well. It doesn’t have to be a huge commitment for a business, or a big disruption to a workday. Just take the last hour or two of a day and open it up to the parents. Serve some refreshments, have the senior management talk about what the company does, provide tours of the facilities, let parents meet their kids’ coworkers and see their work spaces, and call it all good. My youngest Millennial just started her first career position a couple weeks ago. I might just tuck this article into her purse in hopes that she shares it
with her boss! I’d sure like to see where she works, meet her new co-workers, and learn more about the company that she is so excited to be a part of. Who knows? Maybe it would allow me to give her even better, more informed advice as she navigates her new job and strives to become a great employee. • Julie Tappero is 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.
Meeting of development officers will focus on donor stewardship The Kitsap Development Officers Group will hold a meeting from noon to 1:30 p.m. on Dec. 3 at the Poulsbo Library, 700 NE Lincoln Road. Ian Adair, executive director of The Martinez Foundation, will speak on donor stewardship. All nonprofits are welcome at this free presenetion; RSVP to email@example.com. The presentation on Donor Retention and the Importance of Personalizing Stewardship will cover: • What donors really want from an organization after they donate • What stewardship practices get the best results • How to involve donors on a more personal level • How to build trust between organization's leadership and the donor
Master Gardener training and certification program taking applications Applications are now being accepted for the 2014 Master Gardener Training and Certification Program. The cost is $225 per person, which includes materials. Scholarships are available. Classes normally fill up by mid-December, so apply early. For more information, call 360.337.7157. For those interested in WSU’s research-based horticulture training without the volunteer component, a Certificate of Horticulture Basics is offered to a limited number of students for $420. For more information on either of these programs, contact Colleen Miko at 360.307.4378 or firstname.lastname@example.org.
West Sound Workforce
15 Years in Business!
Celebrating over 5000 successful job placements on the Kitsap Peninsula! 561320 – Temporary Help Services 561312 – Executive Search Services 561311 – Employment Agencies
Gig Harbor Office
Being bilingual is your key to becoming influential By Dan Weedin Hola. Me llamo Dan Weedin. Como esta usted? Okay, that’s NOT the bilingual I meant, but I wanted to take this brief opportunity to show off and grab your attention. Being bilingual is critical to your success as an executive, business leader, entrepreneur, and sales professional. Unfortunately, most of you only speak one “language,” and in so doing leave others confused and money on the table. Allow me to explain… Coming out of the insurance and risk mitigation world, we have our own special jargon. We like to talk about exposures, hazards, perils, exclusions, redundancy, and coinsurance. We reference ITV, ACV, BI, RC, BOR, and DIC. It’s clear to us, but gibberish to normal people. Unfortunately, I’ve watched professionals in my industry u se terms and acronyms like this when speaking with current and prospective clients. To say this is painful for their listeners is an understatement. What’s worse is that important information is being misinterpreted and rejected because the message is flawed. They are speaking the wrong language.
I am on the school board in my community. In the beginning, I was inundated with academic-speak. I thought that i nsurance jargon was confusing. Hang around a school district for a while and you’ll feel like you’re in a different country! The perceived lack of “transparency” and communication to the public is really a misnomer. They are speaking the wrong language. This affliction is rampant in all industries, yet gets pervasive when the content gets more complex. CFOs, financial executives, financial planners, insurance agents, and attorneys may lead the pack. In an effort to be influential, they lead with methodology instead of results; and speak in their language rather than the intended audience’s. The results are misunderstandings, frustration, extra work, lost time, lost opportunity, and stress. If you want to be influential, you need to become bilingual. You must speak in a manner that is easy to comprehend and clearly states your call to action. So let’s get started on getting you a quick and simple Business Language 101 lesson! Here are my seven techniques to becoming bilingual and influential: Translate your language into their language. Stop using jargon that only you know. Find other words to be
descriptive. If you must use industry jargon, take the time to explain it. Drop all acronyms, even if you think they know it. If it’s highly technical, make it simple. You already have credibility; your goal is now results. Strategic or tactical? If you’re speaking to the CEO or business owner, you need to be strategic. Strategic is the WHY. This means big picture; visionary; results; and ramifications. If you’re speaking to vendors, direct reports, or employees, you need to be tactical. This is the HOW. This means techniques, specificity, and instructional. Know your audience and what motivates them to act. Be results-oriented. Too many of my colleagues get caught up in their methodology. Most people don’t care about the intricacies of how the car starts. They only care about the results of the car starting. Change your language to results – increased sales; reduced risk; improved morale; decreased drama; enhanced product. If you stay focused on results over methodology, people will be more engaged. Become a storyteller. Since we were children, we humans have always cherished being told a story. This is even truer in a business environment. Become adept at taking personal stories and using them as a metaphor for a business outcome. I promise that people will
Spring release date set for local author’s insurance book • Building relationships through new mediums to accelerate growth • Strategies for improving compensation for agents • Leadership and management skills enhancement • Improving effectiveness of building your brand in your community • Enhancing the client experience to retain business • Leveraging technology on your agency • Effective recruiting and how to maximize talent • Techniques and tactics for work-life balance The book can be purchased as a preorder either directly through the publisher at http://gppbooks-us.styluspub.com/ Books/BookDetail.aspx?productID=3643 92, or through Amazon.com.
Exceptional Assisted Living Community • • • •
24 hour On-site Licensed Staff Services Available to Meet Your Care Needs Delicious Meals in our Lovely Dining Room Safety, Security and Peace of Mind
Call us or stop by for a tour today! 360-874-1212 www.staffordcare.com 1761 Pottery Avenue, Port Orchard, WA 98366
Weedin coaches and mentors insurance agency principals, executives and professionals to help them achieve greater success in their careers and achieve a more rewarding life. He also works closely with insurance agency owners to help them accelerate projects and initiatives within their agency operations and leadership. Weedin is a faculty member for the National Alliance based out of Austin, Texas, and he teaches continuing education for agents in Washington state on Commercial Property and Elements of Risk Management. For more information, contact Dan at (360) 271-1592 or email@example.com, or visit www.DanWeedin.com.
• Dan Weedin is a Poulsbo-based strategist, speaker, and mentor. He coaches business leaders and executives to become stronger leaders, grow their businesses, and enrich their lives. He was inducted into the Million Dollar Consultant™ Hall of Fame in 2012. You can reach Dan at 360-697-1058; e-mail at firstname.lastname@example.org or visit his web site at www.DanWeedin.com.
December 2013 Kitsap Peninsula Business Journal • KPBJ.com 31
Dan Weedin, a North Kitsap-based insurance expert, executive coach and speaker, has announced that his upcoming book, titled Insuring Success: An Insurance Professionals Guide to Increased Sales, a More Rewarding Career, and an Enriched Life, will be released in April by Global Professional Publishing – UK. Weedin has been in the insurance industry in various capacities since 1987. He has been a company underwriter, insurance agent, and a consultant/coach since 2005. His unique experiences in all three elements of the insurance transaction provide him the opportunity to significantly improve and accelerate the growth and career development for insurance agents and professionals in the industry. The book will focus on these areas:
remember your message more clearly if you have a witty story attached to it. The best speakers in the world always use stories. You should, too. Add humor. No cheesy jokes; I’m talking about light and appropriate humor to add sizzle to your steak. Stories are the best way to uncover your humor. People learn when they laugh. That’s why advertisers use it. Have some fun and practice this. You will become an object of interest if you do, and that is part of being influential. Limit technology. Only use a slide presentation if it adds value to your presentation through images. Images. Don’t fill space with bullet points and text. Don’t read to people. I guarantee they already know how! The focus should be on your words, not words on a screen. Simple graphs, charts and images can enhance your message. Use technology for good, not evil. Call to action. Always leave with a call to action. Even in a one-on-one conversation, you need to be direct and specific about what you want to happen next. Never assume that your verbiage implied next steps. Be clear, concise and direct. My professional mentor Alan Weiss espouses that language controls conversations; conversations control relationships; and relationships control business. If you’re going to maximize your influence in business, you must maximize your relationships. The best way to do that is to be influential. You can’t be influential if you’re not understood. Become bilingual by turning the complex into simple, and your results will be increased influence, enhanced credibility, and improved outcomes. Hasta la vista, baby!
Libraries offer online IT courses through Microsoft partnership By Tim Kelly, Editor Got IT? Your local library does, and it’s free. Kitsap Regional Library (KRL)branches and public libraries across the state are offering patrons access to the Microsoft IT Academy at no charge. The online technology curriculum provides opportunities for people to become proficient in using a wide spectrum of Microsoft software programs, and for advanced learners to prepare for certification as IT professionals qualified to maintain software networks. “We can provide this access to people who could never afford it on their own,” said Sharon Grant, KRL’s digital branch manager. “It’s about economic development and how to help people really at grass-roots level.” The Wasington State Library’s partnership with Microsoft is supported by $1.25 million in funding from the legislature, and Microsoft has discounted the cost of its training courses by about 90 percent so more than 400 public, community college and tribal libraries throughout the state can offer free access to the IT Academy during the current
biennium, which runs through July 2015. Access to the program started in midNovember, and according to a KRL news release, “the official Microsoft E-Learning Curriculum has more than 1,500 online, multimedia courses to choose from including games, simulations and videos to provide students with a hands-on learning experience.” The training covers everything from basic digital literacy and instruction in programs such as Word and Excel, which are valuable skills for people looking for jobs, to high-level training that can lead to career advancement in IT. “It gets quite advanced,” Grant said of the Microsoft IT curriculum. “Kitsap is very diverse and has very diverse needs. There are people keeping up with high-level technical skills, and people just looking to get started learning technology.” She noted that the online training geared toward certifications in Microsoft administration and applications does not include the required tests for obtaining certification. There is a cost for the tests, which are offered at Certiport centers around the Seattle area, although none are in Kitsap County.
“Libraries now, to a great extent, are a resource not just for materials, they’re also a resource for technology.” — Sharon Grant, Kitsap Regional Library digital branch manager For library cardholders, registration and access to the training will be available through the library system’s website at krl.org/Microsoft. Patrons who don’t have a computer will be able to use terminals at library branches in Bremerton (downtown and Sylvan Way), Port Orchard and Bainbridge Island. Grant said KRL hopes to have the service available at all branches by next spring, as some locations are upgrading computers or completing scheduled replacement of computers to provide reliable video for the Microsoft tutorials.
Microsoft has provided training for librarians who will be helping patrons utilize the training. “Several of our staff went to the Microsoft campus, and also right now we’re getting extra help from them to make sure our computers are optimized,” Grant said. Some Microsoft computer classes have been offered previously through state-run WorkSource centers that primarily help unemployed people, but the new partnership with libraries expands both the scope of training offered and the audience it’s likely to reach. “For people looking for jobs, it’s great that they’re getting this training, but even people in the workforce need to stay competitive and stay up on technology,” Grant said. Libraries continue to evolve to help meet that need in their communities, she added. “Libraries now, to a great extent, are a resource not just for materials, they’re also a resource for technology,” she said. “It’s not really a change of mission, but just a new area of knowledge we need to help people keep up on.”
32 • Kitsap Peninsula Business Journal • KPBJ.com December 2013
Indie bookstores endure in communities that support them By Tim Kelly, Editor Suzanne Droppert sells an e-reader that starts with 'K' at her bookstore ... but it's not that one. The owner of Liberty Bay Books in downtown Poulsbo has embraced e-books, especially when customers purchase them for a Kobo e-reader. The store started carrying Kobo products last year, and has new versions of the Canadian company’s Glo and Aura e-readers and Arc 7 tablet in stock for this Suzanne holiday season. Droppert “Or you can download the Kobo app for free” to any mobile device, Droppert said, “and you can link that to us.” That way when customers use their app to purchase ebooks from Kobo, Liberty Bay receives a small commission on each digital transaction. A similar offer was recently extended to independent bookstores like hers if they’d sell e-readers from another company, one Droppert identifies only with a humorous Harry Potter reference — “the Voldemort of the book world,” aka the-world’s-largestonline-retailer-who-must-not-be-named. “We don’t want anything to do with them,” she said, because the e-commerce Voldemort is anathema to those who preach the “shop local” mantra. Droppert and her staff have dealt with showrooming, the practice of shoppers going to a store to look over a retailer’s goods and then ordering products online at a lower price. In her shop, some browsers would
On Small Business Saturday — the antidote to Black Friday’s inescapable corporate hype — Liberty Bay had a lineup of nine authors visiting throughout the day. It was part of Indies First, a grass-roots effort to support local independent bookstores organized by Seattle author Sherman Alexie, who wrote to other authors encouraging them to take part. “There’s a wonderful group of authors who live Tim Kelly photo in this area,” Droppert Kobo e-readers are displayed at Liberty Bay Books in Poulsbo. said. A Liberty Bay favorite who visited for find a book they wanted, “and they used to Indies First is Kristin Hannah of Bainbridge say ‘oh, I'll get it at Costco or I'll get it at a Island, author of the New York Times discount store,’ and now they say ‘oh, I'll bestseller Home Front, set in Poulsbo. just download it on my device.’ Even with the emergence of e-readers “So that's our opportunity to say we sell and downloadable books and the e-books too, and e-readers,” Droppert said. domination of a certain online behemoth, “We really try to promote that they can independent booksellers are enduring. shop locally with us, and it's really (about) Membership in the American Booksellers supporting an independent bookstore Association has increased over the past four versus a large conglomerate that's not in years, from 1,401 in 2009 to 1,632 this year. your community.” “We're still having a good year,” Droppert Reading is a solitary activity, but books are said. “Is it back to the Harry Potter years? No, a shared experience and bookstores promote and I don’t know if we'll ever get there again that in many ways. Liberty Bay hosts book ... for us as a small independent bookstore to clubs and frequent author events, offers staff sell that many copies of a book again.” recommendations of books for customers, She said publishers try to help boost and does outreach to underserved areas of sales through promotions such as sending a the community by distributing free books on case of autographed copies of certain books World Book Night.
for a store to feature. Shops can’t survive just on book revenue, so they carry sidelines, such as puzzles, games, greeting cards, T-shirts, socks ... and this year at Liberty Bay, one item that might seem out of place in a bookstore. “We're selling Coobie bras,” Droppert said. “People are like ‘you're selling bras?’ Yeah, and they sell well.” Twenty-two on a single Saturday, as a matter of fact. The colorful, relatively inexpensive undergarments were highly recommended by another indie proprietor. Whether shopping for a book, bra or a zillion other items, consumers can find them online at a lower price, but a community pays a price, in Droppert’s view, if local businesses can’t survive because of … Voldemort. “To me, they are not a community member,” she said. “They're not here supporting the local charities; they're not here planting the plants ... they're not doing that in any community.” Even in a town like Poulsbo that draws a lot of tourists, the patronage of local residents is crucial to the success of businesses. Droppert said she’s grateful that “many people support us downtown, myself and the other stores.” Another appeal of local shops that youknow-who can’t match is traditions like the one Droppert and her 28-year-old son enjoy. He’s in his first year as a junior high school English teacher in Jackson, Wyo., but he will return to the town where he grew up and work with his mother at Liberty Bay Books on Christmas Eve, so her employees can have the day off.
A few takeaways from the Seattle Interactive Conference By Rodika Tollefson This year’s three-day Seattle Interactive Conference, held at the end of October, included about 90 workshops, presentations, panels and keynotes from a variety of thought leaders and experts in the digital interactive field. The sessions were geared toward content strategists, entrepreneurs, designers, developers, marketers and the like. The buzzword for the conference was transparency, with other key themes centered around branded content, storytelling and engagement. A few takeaways from some of the sessions: Marketers are still trying to crack the search-engine optimization code, and it’s getting more and more complicated. Rand Fishkin, CEO of Moz and co-founder of Inbound.org, said search results are no longer static — and about 78 percent of the results change rankings on a daily basis. Google, for example, looked at limited inputs in the past for rankings, and SEO was based on site accessibility, keywords and links. Google of the future, Fishkin said, will be very complex and will try to consider everything in search results, from content quality to social reputation, and not one single source will have the most power. His tips: Don’t hire SEO “experts” and use manipulative tactics to increase ranking; Make sure the marketing and the products tell a cohesive narrative throughout all the channels and all stages of customer interaction; Content quality is better than quantity; it’s one way to stand out from the crowd on the web. Social media is another growing
they don't want to consider his whole message, which is an inconvenient truth. “I am far from proposing an irresponsible populism,” the pope continues, “but the economy can no longer turn to remedies that are a new poison, such as attempting to increase profits by reducing the work force and thereby adding to the ranks of the excluded.” Agree or disagree, you have to give him credit for voicing his convictions in a thoughtful and forceful way. “Inequality,” Francis warns, “eventually engenders a violence which recourse to arms cannot and never will be able to resolve.” Strong stuff, for sure. But as he continues to exhort Catholics and all people to act ethically and strive for justice, will his voice be heard and possibly make a difference? Or will his message be dismissed, and his warning eventually realized? Time will tell.
One example is Volkswagen’s “The Fun Theory” initiative, a competition based on ideas for how to use fun as a way to change people’s behavior. In one experiment, a team wanted to see if more people would take the stairs instead of an escalator in Stockholm. They rigged the stairs to make them look and sound like a giant piano keyboard — and found that 66 percent more people than normal opted for the stairs. “You will be surprised at what people will do if you give them a challenge,” Marr said. Storytelling — the stories brands tell about themselves through all their marketing channels — is key because human relationships are based on stories, said filmmaker John Jacobsen, creator and host of the PBS show “The Artist Toolbox.” He said the audience is always looking for story because that’s what captures people. Jacobsen said the majority of the time the reason a story doesn’t work is structure, and suggested for brands to look at examples of movie classics for the right formula — such as “Casablanca,” “Moonstruck” and “The Graduate.” Some of the things those stories have in common is the fact they are relatable, have an inciting incident and a gap between the viewer
expectation and the result (or a surprise). Stories are journeys of transformation, Jacobsen said. For marketing, that means thinking about what does the company believe customers want even if they say they don’t. Emotion, compelling characters (especially underdogs) and climax are among the storytelling elements. As brands move more into content marketing, storytelling becomes more important, said Esther Lim, vice president of group accounts at Story Worldwide, who was part of a panel on how to reach high-maintenance consumers with the brand story. She said great characters make a brand personable — think of the lovable Flo from Progressive Insurance. Some of her tips: Storytelling should be authentic — brands should be true to themselves and their ethos; Don’t try to be everything to everyone; instead, find the most loyal customer segments and provide content that appeals to their ethos and values, and design the experiences for them; Know and respect the audience — provide the right type of the content they want at the right time and give them the kind of content that will take them to the next part of their consumer journey.
December 2013 Kitsap Peninsula Business Journal • KPBJ.com 33
from page 38 expresses a crude and naïve trust in the goodness of those wielding economic power ... “Meanwhile, the excluded are still waiting.” Rather than making a generalized plea for compassion for the less fortunate, Francis articulates what he believes needs to be done to attain justice, speaking in a more forthright way than most other popes or world leaders would. “Growth in justice requires more than economic growth, while presupposing such growth: it requires decisions, programmes, mechanisms and processes specifically geared to a better distribution of income, the creation of sources of employment and an integral promotion of the poor which goes beyond a simple welfare mentality.” Mentioning anything about welfare and a fairer distribution of wealth will get conservatives howling, but only because
challenge. Simply Measured co-founder and CEO Adam Schoenfeld said the average brand has 178 social media profiles and it’s getting more complicated and messy to figure out where to invest marketing efforts. At the same time, social media along with mobile is the fastestgrowing for marketing. Schoenfeld’s tips: What works for successful brands (businesses) is being consistent and dedicated around the clock, knowing each network, and using data and experimentation. Visual content is huge currently, and photos are getting five times more engagement per post — which means brands not taking advantage of it are missing out. Brian Marr, director of strategy at Smashing Ideas LLC and faculty member at the University of Washington’s Communication Leadership graduate program, said among the biggest challenges for brands today is the drop in engagement and loyalty. Loyalty, in fact, has been commoditized through things such as loyalty rewards and punch cards. Fortunately, there’s a growing understanding of what motivates people and Marr believes things are moving to an era of “motivational design” (taking principles that work when people are doing things they want to do, and applying them to situations when they do things they have to do). The answer, often, is gamification — a word Marr doesn’t particularly like as the best definition. Work, he said, can be fun — it’s just a matter of understanding what motivates people and creating that environment.
2014 Jeep Compass: The mini Grand Cherokee By Bruce Caldwell The Jeep brand is one of the most iconic in the history of American automobiles. The parent company, Chrysler, has done everything possible to maximize the brand’s value. They have expanded beyond the marquee models Wrangler, Cherokee and Grand Cherokee to offer the Compass and Patriot. These smaller, less-expensive models let budget-minded consumers enjoy the legendary Jeep experience. We tested a 2014 Jeep Compass Latitude 4x4. With a base price slightly over $24,000, it’s considerably less expensive than the Grand Cherokee. It’s also smaller, less powerful and less luxurious, but the compact SUV size and price are perfect for many young families seeking an all-activity vehicle. It’s also a great choice for empty nesters who occasionally transport grandchildren or people who want a rugged vehicle to tow behind an RV. Walkaround: The 2014 Jeep Compass Latitude has a strong family resemblance to the Jeep Cherokee and Grand Cherokee. This is very good since those Jeeps are among the most recognizable and desirable SUVs. Our Latitude model (the middle of Sport, Latitude and Limited models) had handsome 17-inch alloy wheels and
P215/65R17 all-terrain tires. The beefy rolling stock boosted the visual appeal. The Jeep Compass has a more macho look than most mini Utes. Interior: The interior is roomy up front and snug for knees in the back seat. Headroom is excellent throughout. The backseat is rather firm and not our first choice for long trips. The driver and front passenger seats are fine. The interior materials and fit/finish are reasonable for a vehicle at this price point. The Jeep Grand Cherokee is far, far nicer, but all that luxury comes at a cost. You could easily buy two Compasses for the price of a well-equipped Grand Cherokee (three Compasses if you choose a Grand Cherokee SRT). A fun feature for people who enjoy tailgate parties is the big liftgate speakers. They can send a lot of music out the back hatch.
The New 2014
34 • Kitsap Peninsula Business Journal • KPBJ.com December 2013
Jeep Compass Inspired to take you farther
900 West Hills Blvd, Bremerton, WA 98312
Cargo space is simply adequate with the rear seat up, but when the 60/40-split seat is folded the space is very useable. The seats fold almost flat. The rear hatch opening is large for easy maneuvering. The inner wheelwells are covered in cheap plastic. Small-items storage suffers in the Compass. The door bins, center console, and glovebox are all undersized. Under The Hood: The Jeep Compass may share some of the Cherokee and Grand Cherokee’s looks, but under the hood choices are more limited. The Compass is only available with two fourcylinder engines. The base engine is the 2.0-liter I-4 that produces 158 horsepower and 141 lb-ft of torque. The greatly preferred optional engine that was in our tester is the 2.4-liter I-4 that ups the output to 172 horsepower and 165 lb-ft of torque. The Compass is available in either frontwheel drive or all-wheel drive. We think AWD should be standard if for no other reason than this is a Jeep. To our way of thinking a front-wheel drive Jeep is as incongruous as a four-cylinder Viper. Our Compass Latitude 4x4 model had to optional Freedom Drive II Off-Road Group, which beefed up the Jeep factor with items such as Brake Lock Differential, Hill Descent Control, engine and transmission skid plates, fuel tank skid plate shield, tow hooks, engine oil cooler, larger all-terrain tires, heavy-duty floor mats, and the all important “Trail Rated” badge. There are three available transmissions for the Compass: a 5-speed manual, a 6speed automatic, and a CVT. We prefer the 6-speed automatic, but our tester had the CVT. It was equipped with an off-road crawl ratio and we didn’t have any real complaints about its performance. Our
reluctance about the CVT was mostly in our head. Based on past experiences and the longstanding Jeep image, it just seems like Jeeps should have sturdy, low-ratio manual transmissions or heavy-duty automatics. The idea of a CVT just doesn’t fit our perceptions of Jeeps. The engine and transmission package worked fine for daily driving. We averaged 21 miles per gallon against the EPA estimate of 20 mpg city and 23 mpg highway. Those estimates are on the low side of competitive compact SUVs. Behind The Wheel: Driver accommodations are very good and the highway ride is pleasant. The smaller size of the Compass makes it a good city errand vehicle. The engine and transmission get the job done, but lack the reserve power of the Grand Cherokee. Handling and braking are all good and it doesn’t feel top-heavy. We’ve driven the Compass on relatively rugged, muddy trails and it performed very well. Its approach and departure angles are excellent and ground clearance is adequate. The optional skid plates are great confidence boosters. Whines: There is a permanently mounted cup holder on the back seat driveline hump. That makes it awkward for a middle passenger. The rear seat is tight on shoulder space for three adults anyway. The door bins are too small for such an activelifestyle vehicle. Bottom Line: The 2014 Jeep Compass is a compromise compared with better known Jeeps such as the Grand Cherokee and Wrangler, but this is a good thing for many buyers. The Compass is Jeep a la carte — you get a solid base without paying for expensive frills.
2014 Chevy Malibu: Smooth and refined squared-off taillights, which we’ve seen referred to as “Camaro-inspired,” round out a decentlooking package. Interior: The Malibu’s interior offers many improvements over the previous model, with redesigned front seats offering more deeply sculpted seatbacks for added comfort, while contributing to increased rear knee room. The center console has been reworked, moving the shift lever closer to the driver, and featuring a longer armrest, twin cup holders, and dedicated storage for two cell phones. Everything else up front is basically the same. Chevy’s MyLink infotainment system uses a touchscreen interface that's among the simplest to use, with easy setup and intuitive functions. New this year is the addition of voice texting, and the ability for iPhone users to call upon Siri through the system. Under The Hood: The 2014 Malibu comes standard with the aforementioned 196-horse, 2.5-liter Ecotec engine, with dual overhead cams, variable valve timing, and Stop/Start. EPA-estimated mileage is 25/36 city/highway. The premium powerplant under the hood of our test vehicle is the much more powerful 2.0-liter turbocharged fourcylinder engine rated at 259 horses and 295 pound-feet of torque. This is essentially the same engine offered in the Buick Regal and Cadillac ATS. EPA estimated mileage is 21/30. Both motors feature all-aluminum blocks and heads, and are married to smooth six-speed automatics with differing shift points. Behind The Wheel: We found the Malibu pleasant to drive, with handling and ride comparable to the Honda Accord. Its handling at high speeds is adept, thanks to suspension upgrades courtesy of the allnew Chevy Impala, including rebound springs integrated inside the struts — contributing to the Malibu’s smoother ride while reducing weight transfer and body roll during cornering and acceleration. Energy-efficient, electric variable-effort power rack-and-pinion steering translates into near-effortless low-speed driving along with improved steering feel at higher speeds. Also, the Malibu’s brake system is improved, delivering a solid, confident feel. However, in spite of all that, while not bad, we still thought handling could be a little more lively. Whines: One thing that struck us as odd is the mix of finish materials. Mind you,
there’s nothing sub-par for this segment, and the dashboard and door materials have a generally premium look and feel. However, the center stack and other lesstouched places feature rough, economical, hard plastic that seems somewhat misplaced. Bottom Line: The 2014 Chevy Malibu is a serious competitor in this crowded
market segment. However, it also invites comparisons to the basically boring Camry in many ways — but obviously, for a lot of folks, that’s not necessarily a bad thing. At $31,830 for the fully loaded 3LT as tested, and built in America at both Kansas City and GM’s historic Hamtramck plant in Detroit, one thing it unquestionably delivers on is traditional Chevy value.
501 WEST HILLS BLVD., BREMERTON WWW.HASELWOOD.COM
December 2013 Kitsap Peninsula Business Journal • KPBJ.com 35
By Lary Coppola While the Chevrolet Malibu was all-new for 2013, its reception from buyers was somewhat lukewarm, and at one point, dealers were actually selling more discounted 2012 models than new 2013s. Chevy quickly worked up a significant list of refinements and changes for its important 2014 midsize sedan — including a revised engine, suspension and upgrades to the rear-seat interior space. The intent of the makeover was to further improve fuel economy, comfort, ride quality and handling over 2013. It succeeds in part thanks to upgraded chassis and suspension components borrowed from Chevy’s larger Impala sedan. The shorter wheelbase on the 2013 in comparison to the previous generation Malibu also meant less rear legroom. However, added rear-seat legroom and knee room in the 2014 are a noticeable improvement in back-seat comfort. The pricey eAssist hybrid system launched in 2013 is history, and a 2.5-liter, 196-horse ECO, with stop/start, is now the standard powertrain. It shuts down the engine at stops to reduce fuel consumption, and restarts when you take your foot off the brake. Elimination of the eAssist system also means there’s more trunk space where the batteries used to be. Our test vehicle featured the new premium powerplant, a 2.0-liter DOHC, turbocharged 4-cylinder, and will be the focus of this review. Model Lineup: The 2014 Chevrolet Malibu comes in three trim levels — the base, LS, upgraded mid-level LT, and topof-the-line LTZ. Its main market segment competitors are the Ford Fusion, Hyundai Sonata, Toyota Camry, Nissan Altima, Mazda6 and Honda Accord. The Malibu comes standard with a full menu of safety features, including fourchannel anti-lock brakes, full-function traction control, four-corner electronic stability control, electronic brake force distribution, brake assist, corner brake control, hydraulic brake fade assist, and drag torque control. Ten airbags are standard, with a rear-view camera system optional. Walkaround: In addition to the all– new design of the 2013 Malibu, the 2014 version boasts a new, sportier face with blacked-out mesh grille and wider twinport openings. That refreshed fascia is the signature look of Chevy’s current lineup. Much like the Toyota Camry — which this car reminds us of in more ways than one — the previous design was both inoffensive and uninspiring. However, the 2014 is more sculpted and eye-catching, with a hood curving over the tipping point of the nose, giving the lower grille opening a large, more defined look. The headlamps and foglights remain unchanged, but the facial upgrade gives the Malibu a slightly more aggressive appearance. The rest of the Malibu's visuals haven't really changed. The front and rear overhangs still seem, to us at least, a bit overdone, and the rear design of the
Publisher Lary Coppola Editor Tim Kelly Advertising Sales Dee Coppola Pre-Press Operations Steve Horn Webmaster/IT Greg Piper Graphic Design Kris Lively Office Administration Jennifer Christine Web Host PCS Web Hosting LLC Contributing Writers Rodika Tollefson Don Brunell Dan Weedin Julie Tappero Jason Parker Press Releases
36 • Kitsap Peninsula Business Journal • KPBJ.com December 2013
Email to pressreleases@KPBJ.com The Kitsap Peninsula Business Journal is a special interest publication dedicated exclusively to providing news, information and opinions to the business communities of the Kitsap and Key Peninsulas, and North Mason County. It is published monthly by Wet Apple Media. Copyright, 2013, with all rights reserved. Postage is paid at Tacoma, WA. The Kitsap Peninsula Business Journal is read by more than 26,000 business, professional, political and military leaders in Kitsap, Pierce, and Mason counties. Additional copies are available for $1.50 each. Annual subscriptions are available for $25. Reproduction or use of any editorial or graphic content contained herein in any manner whatsoever without the expressed written consent of the Publisher is strictly prohibited. The Kitsap Peninsula Business Journal is proudly composed using Apple Macintosh® computers and printed by The Kitsap Sun, Bremerton, WA. Views expressed herein are strictly the opinions of the authors and do not necessarily reflect those of the advertisers or ownership of The Kitsap Peninsula Business Journal.
Wet Apple, Inc. Post Office Box 1101 • Port Orchard, WA 98366
(360) 876-7900 • (800) 733-7990 Fax: (360) 895-2495 Website: www.kpbj.com
Member Kitsap Economic Development Alliance Kitsap Visitors and Convention Bureau Homebuilders Association of Kitsap County Bainbridge Island Chamber of Commerce North Mason Chamber of Commerce Poulsbo Chamber of Commerce Silverdale Chamber of Commerce
Hard times call for extra efforts By David L. Foote Just when you thought the economy was starting to improve, what happens, we have a government shutdown and the Affordable Care Act (Obamacare) has an October surprise. The second day of the government shutdown I had a local Congress person call me to ask how the shutdown was affecting our ability to raise funds. I said, “At this point we were fine. But if it lasts as a long as week, I am afraid people are going to begin getting nervous and donations could begin to slow down.” The Congress person then remarked, “I never thought I would be associated with an organization whose poll numbers would be lower than head lice!” A remarkable statement. Then the government website for the Affordable Care Act blows up and thousands of people find that the plans they like they cannot actually keep; that includes employees at United Way. There is always a cause and effect that takes place, and the effects of the above two causes appear to be devastating to United Way’s ability to raise funds this year to support the safety net in Kitsap County. United Way also holds the contract for the Combined Federal Campaign (CFC). When the government shut down so did the CFC campaign at all government facilities. I recently received word from the CFC director that the campaign is $400,000 or more behind last year’s campaign at the same time. The CFC makes up about 15 to 20 percent of United Way’s total campaign dollars. With the Affordable Care Act fiasco playing out and many individuals and families finding out that they cannot keep their current plans, they find out that their new policy insurance
rates are increasing. This is true of United Way’s premiums too. People are angry, unsure of the future and apparently that is affecting their willingness to donate to charitable causes. In 2007 United Way raised $1.86 million and the staff, the board of directors and the safety net were ecstatic. We went into 2008 thinking we could hit $2 million. That was not to be as the recession began to slow everything down. Four years of high unemployment and a lagging economy, the campaign has lost over $400,000 in pledges. In 2012 we thought we saw the bottom when the campaign was able to match the 2011 campaign totals. As we looked toward this year’s campaign, we believed that we had an opportunity to begin increasing pledges. However, if you have seen our campaign video this year, you see a man who says, “When you think you have hit rock bottom, you’d be surprised how much lower rock bottom is!” What a profound statement! In this moment in time, loyal givers are suffering from overwhelming fears of what tomorrow may bring. Politicians’ favorability are at historical lows. With their inability to do anything but point fingers and call each other despicable names, is it any wonder that people are curled up in a fetal position? Families are doing everything possible to protect themselves from total disaster at the hands of an ineffective, inefficient and over-reaching government that seems bent on tearing this great county apart. This is unfortunate! The only effective means to help the poor and low-income is through charitable giving to local nonprofits working diligently and collectively together to provide the necessary safety net for the community. At these sad times is when charitable giving is the most needed. It was hard times like this in 1887 that a Denver woman, two clergy, a priest and a rabbi came together and started what eventually would become United Way today, still the most cost-effective philanthropic organization around in the world.
We know that life today is uncertain. As a community we must cometogether to take care of our own and protect life in Kitsap County. We must work together as if nobody is coming to help. The reality is that now we must continue as if we are on our own. We must find a way to support not only United Way, but the community organizations that constitute the safety net in Kitsap County. Please, will you help? Donations can be made online at www.unitedwaykitsap.org or you can call United Way at 360-377-8505. It is not too late to conduct a campaign in your business. Give Carl Borg or me a call at our office. We will help you set up a campaign at your business. Every dollar helps! • David L. Foote is executive director of United Way of Kitsap County.
United Way of Kitsap County has openings on board of directors The board of directors for United Way of Kitsap County is made up of local individuals from all walks of life who volunteer their time and talents to make decisions to meet local community needs. Currently the board has 20 members — who serve a maximum of two consecutive three-year terms — with a minimum of five vacancies to be filled by January 2014. The board of directors meets on the third Thursday of each month to conduct the business of United Way. Board members are als o responsible for participating in various committees as well as making a monetary contribution at a comfortable level. Currently, United Way is nearing the conclusion of its 2013 annual campaign. Every year the board reviews dozens of Kitsap agencies, researches community needs and then allocates local donations to the organizations that are making the biggest impact in Kitsap County. Directors, page 37
A salute to the public partners of our private-public alliance By John Powers The Kitsap Economic Development Alliance is a 34-year-old public-private economic development partnership. Our alliance was born of local community leaders’ recognition that together public entities and private enterprises can more effectively shape and develop economic opportunities in Kitsap. Our alliance is led by a dynamic board of 18 elected officials and 18 business leaders. Our core mission is to attract investment and jobs to Kitsap County. And, our core clients are local businesses we serve by connecting them to strategic resources and relationships and market information. We most often focus our attention and message around matters of critical importance to our private-sector partners (capital formation – human and financial ; infrastructure needs; market connectivity; innovation and entrepreneurial capital; public policy and regulations; and business climate). After all, businesses are our clients and the direct beneficiaries of the services we offer (workforce access; market research and analysis; site selection services; business planning; permitting and regulation; and B2B and G2B connections) so it only makes good business sense to focus on your clients. But it’s also important to take a moment and recognize the critical role our public partners (federal, state, county, city, ports, special-purpose districts and agencies, and educational institutions) play in making sure Kitsap has a strong economy and is an excellent place to do business. This role includes promulgating and administering sound public policy — policy that fosters a vibrant,
sustainable and competitive environment in which to live, learn, recreate, work and do business. In addition, our public partners are charged with making sure our communities are well served by public infrastructure critical to sustaining a vibrant economy and exceptional quality of life (transportation, utilities, public safety, schools, parks and a host of other public services, ameni ties and facilities.) Our public leaders also play an essential role in setting the community table for the formation and management of social-political capital in a community – the intangibles like community spirit and collaboration, presence of strong civic and service organizations, and an overall welcoming business climate. We just completed local elections for a host of public offices: state legislators, mayors, city council members, port commissioners and school board members, to name a few. Too often we hear the voice of critics of elected officials; too little we hear the voices of recognition and thanks for a job well done by our elected leaders. But, through it all (positive or negative press and public opinion), the vast majority of elected officials go to work each and every day, long days, t o diligently discharge the duties of their respective office with a dedicated commitment to serving the public and making a difference in the day-to-day well-being and prosperity of the communities they love and serve. They are a big reason Kitsap is a great place to live, learn, re-create, work and do business. I invite you to join me in thanking our elected officials and public servants for all they do fo r our Kitsap communities and for being such valuable partners in our 34-year privatepublic economic development partnership — The Kitsap Economic Development Alliance. Here’s to our local leaders – Here’s to them all! • John Powers is executive director of the Kitsap Economic Development Alliance.
December 2013 Kitsap Peninsula Business Journal • KPBJ.com 37
United Way of Kitsap County’s mission is “mobilizing community resources to improve people’s from page 36 lives,” and its vision is “to build a stronger community.” “We are searching for motivated and enthusiastic individuals who want to be actively engaged in our efforts to raise local funds in support of the communities’ safety net of services benefiting the less fortunate in our community,” executive director David Foote said. “We are in the business of creating meaningful and tangible impact throughout Kitsap County and we are looking to fill these vacancies with individuals willing to roll up their sleeves and get involved.” Each year nearly 1 out of 3 people in Kitsap County are helped by the United Way network of agencies dedicated to raising people up out of poverty, ensuring that families have enough food for their table, ensuring that children are safe and ready for school, that the homeless are helped to become productive members of the community and that the elderly and disabled are safe, warm and secure. “This has been another difficult year for fundraising as we all deal with a sluggish economy, political discourse and economic uncertainty,” Foote said. “As board members leave the board due to term limits, job changes, promotions and moving out of the area, we need to replace these good board members with individuals who are anxious and capable of helping us make strategic decisions and working in the community to raise funds to support our important community work and want to make a difference.” In addition to board members, United Way is also searching for community members to be campaign executives (CE). These individuals share the responsibility for helping United Way raise funds every year during the Annual Community Campaign, and United Way is looking to build its cadre of CEs up to 15 to 20 individuals. Starting in January, the CEs meet once a month preparing marketing materials for the fall campaign that runs from September through December. During the campaign, CEs work 5 to 7 hours per week making presentations throughout Kitsap County to tell the story of how United Way helps improve people’s lives through the community safety net. Interested community members may call Foote at (360) 377-8505 for more information or email their interest to email@example.com. New board members will be installed at the January 2014 board annual retreat/seminar. Their first term will expire in December 2016.
Republicans, ObamaCare, and the Heisman Trophy … I’ve written many times in this space — including just last month — that there isn’t a way for Republicans to shoot themselves in the foot they haven’t thought of, but that I have great confidence in their ability to invent new ones. Lo and behold, once again, they’ve not let me down. In a world where Democrats have convinced most women in America that the Republican Party has declared war on them, their bodies, and their rights under the Constitution, guess what the state Republican Party did to further that perception? As you may be aware, the recently elected head of the state GOP is a woman — former KIRO-TV news anchor Susan Hutchinson. In that position, she makes $75,000 a year, which is $20,000 less than her predecessor, Kirby Wilbur, a former conservative talk radio host, made. So what do you think happened when Hutchison recently asked state party leaders for equal pay — especially after pointing out that paying her less than the man she replaced simply reinforces the Democratic mantra that Republicans are conducting a War on Women? According to reports from our sources within the hierarchy of the state GOP, at that point, things got real ugly, real fast. Hutchison was unceremoniously denied equal pay. Meanwhile state GOP leaders are absolutely furious that Hutchison made the request to begin with, much less had the audacity to stand her ground about it. Now that it’s become public knowledge, it’s painfully obvious they’ve once again pulled
the trigger of the gun they keep aimed squarely at their foot. After what has to be the most disastrous event of his presidency — the rollout of the obviously misnamed Affordable Care Act — even the President is distancing himself from the term “ObamaCare.” The simple LARY COPPOLA truth is that Barack Obama The Last Word blatantly lied to the American people about being able to keep their healthcare plans, and their doctors. Meanwhile, Kool-Aid drinking liberals are trying to convince us that Obama didn’t really “lie” — he merely “over-promised.” They have a name for that where I come from. It comes out the southern end of bull facing north. He lied — pure and simple, and knew he was lying when he did it. End of story. “Under-promise and over deliver” is one of the very first things taught in Salesmanship 101. But what’s really offensive here is that such a large majority of the Kool-Aid drinkers have willingly accepted their President intentionally lying to them as business as usual, without a problem. Making it worse is that Lamestream Media outlets, like NBC, couldn’t even be bothered to report it, or report the problems with the ObamaCare rollout. Some segments of the media — such as the liberal website Politico, actually defended the President lying to us.
Politico not only admits that Obama intentionally lied to purposely mislead the country in an effort to drum up support for what liberals hope will eventually become European-style socialized medicine, but offers what it perceives as a perfectly legitimate reason for him to do so — Americans simply can’t handle “unpleasant truths.” Seriously. Excuse me? This isn’t Jack Nicholson screaming at Tom Cruise, “You can’t handle the truth!” This is real life — and it represents a fundamental change in the way healthcare will be delivered to Americans from this point forward. Just as Obama and the liberals are on a misguided crusade to destroy the coal industry in this country to appease environmentalists (who think we should all use less energy, in spite of the fact we have more coal than the Mideast has oil, and the technology to burn it cleaner than natural gas), they are also on a mission to destroy the healthcare industry in an effort to achieve their holy grail — a single-payer healthcare system — and that’s the real “unpleasant truth” of the matter. Hundreds of thousands of Americans work in the healthcare industry. Throwing them out of work is considered little more than collateral damage in the liberal quest for a single-payer system. Just for a minute imagine the selfrighteous uproar from Democrats, not to mention the Lamestream Media, if Fox News had defended former President Bush for intentionally lying to America — not only about healthcare, but about what
amounts to one-sixth of the American economy. And suppose Fox’s justification was Bush had to lie — because the public would not have been able to handle the “unpleasant truth.” Laughable… The rollout fiasco has Obama’s popularity ratings in the toilet, and even in spite of the Lamestream Media’s protection of him, for the first time, even some of the Kool-Aid drinkers — because it’s hitting them in their wallets — are questioning the basic honesty of this president. Isn’t it about time? Being a fan of Southeast Conference (SEC) football, I find all the hyperbole surrounding possible 2013 Heisman Trophy candidates somewhat annoying. Johnny Manziel of Texas A&M is admittedly a rare talent, but I thought it inappropriate to bestow the trophy upon him as a freshman last year. He’s a candidate again this year, as are Ohio State’s Braxton Miller, USC Wide Receiver Marqise Lee, and Oregon Quarterback Marcus Mariota — another freshman with impressive numbers. However, I believe the best guy is being overlooked — Alabama Quarterback AJ McCarron. He’s led the Crimson Tide to two BCS titles, and only lost three games in his college career — the third one on coaching errors and a freak play to end the game. He’s probably better than any Quarterback ever to come out of Tuscaloosa — which includes Bart Starr, Kenny “The Snake” Stabler, and “Broadway Joe” Namath among others. In my view, he’s earned the Heisman.
38 • Kitsap Peninsula Business Journal • KPBJ.com December 2013
A bold call for economic justice for all Do you think we have enough designated Days? This edition of our paper will get circulated at the end of a stretch that covers Thanksgiving Day, Black Friday, Small Business Saturday, Cyber Monday and Giving Tuesday. The scorecard for themes in that succession: Days for gratitude — 1; Days for charity — 1; Days for buying stuff — 3 (plus every day that follows in the allimportant holiday shopping season). And of course there's been controversy over encroachment of the Black Friday lunacy into the evening of Thanksgiving. I guess the only way that makes sense is if it saves shopping zombies from bundling themselves in sleeping bags in the middle of the night outside a big-box store waiting to rush in at 5 a.m. to grab those "doorbusters." Then last week, just before the hallowed day of turkey and football and mythology of a long-ago shared feast between Pilgrims and Indians, and just as the inescapable swarm of Black Friday advertising reached a fever pitch, inciting consumers to a mall mania that couldn't even be put off until the morning after Thanksgiving — another exhortation sounded in the media and marketing din.
It was a warning and a bold critique, and perhaps the most relevant and resonant message our society has heard from the pope of the Catholic Church in a long time. Pope Francis issued what's formally known as an "apostolic exhortation," and it's remarkable for its explicit call TIM KELLY for the world's political leaders Editor’s View to do more than pay lip service to addressing global issues of poverty and growing inequality. He starts with this observation: “The great danger in today’s world, pervaded as it is by consumerism, is the desolation and anguish born of a complacent yet covetous heart, the feverish pursuit of frivolous pleasures, and a blunted conscience.” How we react to that likely depends on whether we view pervasive consumerism as blessing or curse, and whether we're willing to take an honest look at ourselves and consider whether our conscience might be a bit blunted. But it’s a message that won’t
be embraced by the shopping masses or the marketing whizzes who foment consumerism. Francis, who made history as the first Vatican leader chosen from outside of Europe, covers a lot of ground in the 84page document outlining his vision for a transformation of the church. But what got the media's attention were his comments in one section, particularly the pope's referring to capitalism as “a new tyranny.” Tyranny, of course, is a popular term in right-wing circles to describe things like Obamacare (because how could anything be more tyrannical than extending health care coverage to millions of previously uninsured people?) But how dare the pope label our exalted system of capitalism as tyranny? Well, he applies the term more accurately than those who bleat “tyranny” as a P avlovian response to anything associated with Obama. Here's the context for the pope’s use of the word: “While the earnings of a minority are growing exponentially, so too is the gap separating the majority from the prosperity enjoyed by those happy few,” Francis writes. “This imbalance is the result of
ideologies which defend the absolute autonomy of the marketplace and financial speculation. Consequently, they reject the right of states, charged with vigilance for the common good, to exercise any form of control. A new tyranny is thus born, invisible and often virtual, which unilaterally and relentlessly imposes its own laws and rules.” Amen, brother. The Occupy movement should have been so eloquent in challenging the insidious corporate takeover of our democracy. He sees a world where the poor are not just marginalized but outright excluded in a culture marked by “the idolatry of money and the dictatorship of an impersonal economy lacking a truly human purpose.” And he offers a rebuttal to a persistent delusion: “In this context, some people continue to defend trickle-down theories which assume that economic growth, encouraged by a free market, will inevitably succeed in bringing about greater justice and inclusiveness in the world. This opinion, which has never been confirmed by the facts, Bold call, page 33
Serving Poulsbo, Silverdale and Bremerton
PROPERTY FOR SALE OR LEASE Poulsbo #CBA509029 $239,000 Development opportunity directly across from Poulsbo's new 59,000 sf Safeway. .75 acres, approved for 4,790 sf building. Site is fully permitted. Perfect for medical or office project. Great visibility w/views of Olympic Mtns. Why lease when you can buy? Kelly Muldrow at 360-710-0509 or Joe Michelson at 360-282-5340.
Solid cash flow investment. Victor Targett 360-7315550. Poulsbo #CBA525540 $612,000 7600 sq.ft. warehouse for sale. Seller will lease back 1/2 and there is a long term tenant in 1/4 of the building leaving 1800 sq.ft. to lease or use by new owner. Joe Michelsen 360-509-4009.
Bremerton #CBA529362 Excellent new, high quality concrete tilt-up bldg in high traffic + visibility corner location w/immediate freeway access. 4 spaces avail & sizes range from 1500â€“5772 sq.ft. Office, retail or industrial. $13.00/SF NNN. Mark Danielsen 360-509-1299.
Ridgetop #CBA482119 Very competitive lease price in Silverdale. Plenty of parking. Bob Guardino 360-710-7844.
Poulsbo #CBA501452 Retail bldg in highly visible location by State Hwy 305. Owner remodeling former auto service bldg into retail use. Space range 1,000 SF-7,200 SF. $15.00/SF/YR NNN. Mark Danielsen 360-509-1299. Bremerton #CBA512042 $850,000 Multi use building on Pacific Ave in downtown Bremerton. 3 commercial suites and 11 residential units and the adjoining 53 space parcel parking lot.
Bremerton #CBA485909 Excellent 9400 sq.ft. warehouse/distribution center with Hwy 3 visibility, easy access to freeway, office, dock high and PSE energy package. All at very competitive rents. Joe Michelsen 360-509-4009. Bremerton #NWMLS 462745 $300,000 Best location in the airport. Best used as hanger but current use is warehouse/industrial with office. Large expansion/lay down area available for new building/jet hangar or other use. Bob Guardino 360-710-7844.
December 2013 Kitsap Peninsula Business Journal â€˘ KPBJ.com 39
Windermere Real Estate/West Sound, Inc.