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Chalk Line JANUARY/FEBRUARY 2014

MAGAZINE

TRENDS Housing in 2014

INSIDE THIS ISSUE WHEN SOLUTIONS CREATE PROBLEMS MCKINLAY SWORN INTO OFFICE 2014 HOUSING SUMMIT 2013 AWARD WINNERS


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CONTENT FEATURE PAGE 10 WHAT’S HAPPENING IN HOUSING? “The prospects for home building in 2014 are bright.” according to the National Association of Home Builders. Cover Photo: Andy Gruhn of Northwest Family Homes at a Northwest Family Homes project in progress in Yelm, WA.

Page 4 OMB WORKING FOR YOU Page 6 HOUSING IN 2014 Page 7 HOUSING SUMMIT

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McKinlay Sworn in

Page 8 GOVERNMENT AFFAIRS HIGHLIGHTS Page 9 WHEN SOLUTIONS CREATE PROBLEMS Page 12 2013 AWARD WINNERS Page 13 EDUCATION: A BLUE PRINT FOR SUCCESS

15

2013 Top Recruiters

18

Chapter News

Page 14 MAKE 2014 THE BEST YEAR YET Page 15 NEW RECRUITMENT TOOLS

Chalk Line JANUARY/FEBRUARY 2014 ISSUE

Page 16 NEW/RENEWING MEMBERS

Page 17 NATIONAL NEWS

Looking Ahead February 11-General Membership Dinner

Meeting featuring David Boze, of the David Boze Show on AM 770 KTTH speaking about “Reasons to be Optimistic in 2014,” at Indian Summer Golf & Country Club.

February 20-Coffee Connection networking event at the Olympia Master Builders Office.

February 22 & 23-Lewis County Home & Remodel Show at the Southwest Washington Fairgrounds in Chehalis.

March 14 -OMB Scholarship application deadline.

OMB will be awarding a $1,500 and $2,500 scholarship in 2014 to college and vocational/technical school bound students intending to pursue studies leading to a career in the building industry.

March 20-Coffee Connection networking event at Dohdoh Design & Development.

March 26-2014 Housing Summit featuring Todd

Meyers as the keynote speaker at Indian Summer Golf & Country Club.

April 12 & 13-OMB Big Home & Garden Show at St. Martin’s University Marcus Pavilion.

April 4 -Remodeling Excellence (REX) Awards

application deadline. The REX Awards will be presented at the May 6 General Membership Dinner meeting.

May 17 & 18-Grays Harbor Home & Garden Show at the Grays Harbor County Fairgrounds in Elma.

For more details on these upcoming OMB events, go to www.omb.org. Chalk Line • 3


OMB WORKING FOR YOU

IN 2014

I’m excited about 2014! I’m also honored and humbled to be serving a second year as president of this great association.

John McKinlay PRESIDENT

Throughout 2014 OMB members and staff are going to be working hard on behalf of our entire membership. Specifically we want to help you:

Save Money!

OMB will continue to offer the Return on Industrial Insurance Program, the BIAW Health Insurance Program, the Verizon Wireless Cell Phone Program and many other money savings programs.

Grow Your Business!

In 2014 OMB will be producing three home shows, a Tour of HomesTM, monthly Coffee Connection networking events, and other venues to help you grow your business. We’ve also just unveiled our 2014 printed OMB Buyer’s Guide which will be distributed to 10,000 potential customers throughout the year. In addition, all OMB members are listed in the on-line buyer’s guide which is located on OMB’s website (www. omb.org).

Be Represented!

OMB will continue to be the voice of the home building industry in 2014. OMB members and staff regularly meet with City and County elected officials and key staff in our five-county region to provide information

regarding the role the home building industry plays in their local economy, educate them about the ramifications of the effects of their proposed regulations, etc. OMB also regularly participates with other organization as a coalition on topics of mutual interest. Some examples, the potential listing of the Mazama Pocket Gopher as a threatened species, the Olympia Shoreline Master Program Update, Olympia and Tumwater impact fee increases, etc.

Be Informed!

One of the biggest benefits of OMB membership, is the opportunity to be informed. Whether you are taking one of our education classes, participating in our Remodelers Council or our Built Green® program, attending our annual Housing Summit or visiting with your peers at an OMB event, you are most likely to be better informed about the information you need to run a successful business than those in the industry who are not OMB members. I urge you to take advantage of your investment in membership in OMB during 2014. For more details about any of the items I’ve mentioned above, I encourage you to contact the OMB office (360-754-0912) or visit OMB’s website (www.omb.org). I’m confident you will receive many times over, more value than you have invested. Happy New Year!

OMB is Mobile! Download the mobile app,

OMB Mobile

and find a builder, electrician, title company, plumber, roofer, banker...

on the go!

OMB Mobile 4 • Chalk Line


Chalk Line Official Publication of the the Olympia Master Builders 1211 State Avenue NE, Olympia WA 98506 Phone: (360) 754-0912 www.omb.org

2014 OMB President and Officers Installed Alexander Swears in McKinlay

The Olympia Master Builders is a professional trade association representing nearly 600 member companies located in Thurston, Lewis, Grays Harbor, Mason and Pacific Counties. Our members come from all sectors of the building trades including bankers, plumbers, electricians, attorneys, and home builders and they are committed to “building strong communities, one home at a time.”

Executive Committee

President John McKinlay First Vice President Scott Nolan Treasurer Ron Deering Associate Vice President Tina Allen Second Associate Vice President Kim Asay Secretary Rusty Ruiz Immediate Past President Janine Ezzell Builder at Large Mike Auderer

Builder Directors

2014 President John McKinlay was sworn in by Gary Alexander at December’s Annual Christmas Party and Awards Banquet.

Scott Bergford, Bob Clark, Andy Gruhn, John Kaufman, John Johnson, Adam Kugel

Associate Directors Jeff Klingberg, Holly Constantine, Heath Howerton, Jon Jones

Legal Counsel Jay Goldstein

National Directors Bob Kagy, Karen McClennen, John McKinlay

State Directors Tina Allen, Mike Auderer, Ray Bonney, Tim Dickey, Erik Jensen, Bob Kagy, Don Koidahl, Harv Lillegard, Bob Love, Karen McClennen, John McKinlay, Aaron Nester, Scott Nolan, Carmen Rowe, Jim Simmons

Lewis County Chapter

President. Erik Jensen First Vice President John Johnson Assoc. Vice President Becky Rieger Secretary Rick Borovec Builder Directors: Don Koidahl, Dave Danton, Dustin Westfall Associate Directors: Carmen Rowe, Jason Kunz

2014 OMB Board members being sworn in.

John McKinlay of Olympia Overhead Doors was installed for his second consec-

Mason County Chapter

utive term as President of the Olympia Master Builders (OMB) at the Associations’ annual Christmas Party at Indian Summer Golf and Country Club in December.

Grays Harbor Chapter

Washington State Representative – 2nd District and former Thurston County Auditor Gary Alexander performed the honors as McKinlay’s Installing Officer. In his acceptance speech, McKinlay said he is honored to be leading the association again in 2014 and looks forward to accomplishing even more great things for the home building industry in the coming year.

President Aaron Nester Associate Vice President Mike Gill Secretary Bob Love

President Harv Lillegard Associate Vice President Rusty Ruiz Secretary Rhonda Sturgeon

Association Staff

Executive Officer Laura Worf Accountant Sally Darrow Communications DIrector Angela White Governm ent Affairs Director Adam Frank Member Services Director Stacey Genzlinger Membership Marketing Coordinator Amanda Cassman

In addition to McKinlay, the following elected officers were installed to begin their service for 2014. They include: Scott Nolan of Four Leaf Carpet Cleaning, First Vice President; Tina Allen of Great Floors, Associate Vice President; Kim Asay of Sterling Bank, Second Associate Vice President; Ron Deering of Deering & Nelson, Inc., Treasurer; and Rusty Ruiz of Hung Right Doors, Secretary.

Chalk Line • 5


HOUSING in 2014 five-county region OMB serves. So, I talked with some of our local home builders. You’ll find their comments in the same feature article on page 10. Laura Worf EXECUTIVE DIRECTOR

This

issue of Chalk Line is focusing on the topic of housing. As we kick off 2014 we want to examine more closely what is happening in the home building industry, especially in our area. We will be focusing our efforts in this issue of Chalk Line on residential new construction. Future issues of Chalk Line will feature other segments of the home building industry. On the residential new construction front, nationally there is a lot of optimism. As our feature article on page 10 notes, the National Association of Home Builders projects nearly a 25% gain in total housing starts in 2014. I decided to find out if there was the same amount of optimism in the

I also asked these builders to share with us what they’ve learned about the home building industry over the past few years. We asked them, “How have you changed the way you do business to meet your customers’ needs?” “What are your customers looking for in a home in 2014?” I think you’ll find their answers interesting. To continue the housing theme, you’ll find information on page 7 about OMB’s annual Housing Summit. There’s been a lot of talk about “sustainability” in our area over the past few years with the Sustainable Thurston effort. So this year’s Housing Summit will be addressing that topic. The article on page 7 offers more details about the educational panels and the keynote speaker. OMB’s Government Affairs Director, Adam

Frank, has done some research on the “sustainability” topic. His column on page 9 takes a closer looks at the theoretical versus the reality of planning for growth. I encourage you to read it carefully. To maintain our optimistic momentum, OMB invited David Boze, from The David Boze Show (AM 770 KTTH) to be our guest speaker at the February 11 OMB general membership meeting. David will combine his knowledge of current events with his upbeat, inspiring personality to ensure a healthy dose of optimism for everyone! You won’t want to miss this great event. Details are on page 7. Whether you will be building new homes in 2014 or supplying the necessary products and services for the construction and maintenance of those homes, I hope you will find the information in this issue of Chalk Line valuable. Here’s to an optimistic 2014 for the home building industry!

What Others Are Saying “While interest rates are on the rise, so is economic growth. At this stage in the business cycle, growth has the upper hand. While rising interest rates dampen home buying activity, better growth and the concomitant increase in employment more than make up for it. That is why I expect new single-family construction activity to rise by 25% to 775,000, and multifamily activity to rise by 11% to 382,000.” --Elliot Eisenberg in his January 9, 2014 daily blog.

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“More markets are slowly returning to normal levels and we expect this upward trend to continue as an improving economy and pent-up demand brings more home buyers back into the marketplace,” --NAHB Chairman Rick Judson.

While home prices have recovered strongly, new construction activity hasn’t. Part of this may have to do with the fact that home prices are still too low to justify construction, particularly given land, labor, and materials costs. For smaller builders, credit may also be harder to come by. Some economists say new-home demand could remain muted because many moveup buyers don’t have enough equity to “trade up” to that new home. --5 Things to Watch In Housing, Wall Street Journal Blog-January 7, 2014


Housing Summit Coming in March said OMB president, John McKinlay. “Todd’s work at the Washington Policy Center goes a long way toward helping policy makers make decisions that protect our environment without hurting our businesses.”

Olympia Master Builders (OMB) is

pleased to once again team up with the Thurston County Realtors® Association to present the 2014 Housing Summit on March 26 at Indian Summer Golf & Country Club. Todd Myers, Director of the Washington Policy Center’s (WPC) Center for the Environment fills this year’s keynote slot. “We are very happy to follow up last year’s successful event with Elliot Eisenberg with another outstanding champion of free markets in Todd Myers,”

Myers is the author of the eye-opening book, “Eco Fads: How the Rise of Trendy Environmentalism is Harming the Environment.” He is also a Wall Street Journal Expert panelist for energy and the environment. Myers holds a Master’s degree from the University of Washington. The Housing Summit will also include two panel discussions. The first will focus on the trends and realities of the housing market in Thurston County, and the second will cover the effects of regulation on the current and future housing market. A select group of builders and real estate professionals will comprise the two panels.

Keynote Speaker Todd Myers “The goal of the Housing Summit is to bring people in our industry and our local government officials together to talk with each other about the realities we face every day as we work to maintain and grow our businesses and serve the community,” said McKinlay. Watch for more information about the 2014 Housing Summit in the coming weeks.

Join OMB during the February General Membership Meeting and hear David Boze talk on

“Reasons to be Optimistic in 2014” Tuesday, February 11 6:00 pm Cost is $25 dollars with RSVP $30 at the door

Indian Summer Golf & Country Club, 5900 Troon Lane SE, Olympia, WA 98501

David Boze of the David Boze show, weekdays from 6-9 am on AM 770 KTTH

48 hour cancellation policy applies. No shows will be invoiced.

Visit omb.org or call 360-754-0912 to make your reservation. Chalk Line • 7


The Latest Government Affairs Highlights Thurston County

Habitat Conservation/Gopher – OMB recently sat down with County staff and legal counsel to discuss issues with the interim permitting strategy being developed by the County. The goal of the interim permitting strategy, according to the County, is to allow for continued permitting while the permanent Habitat Conservation Plan is developed—a process that will take at least two more years. The County agreed to consider changes that would provide more certainty surrounding vesting of permits with assurances against liability after the Mazama Pocket Gopher listing goes into effect (likely the end of April if current challenges to the listing fail), and to try to persuade their federal colleagues to do the same. The County also agreed to consider practical measures to allow permitting to continue should the interim permitting process fall through. Buildable Lands Report – OMB participated in a meeting of the Forecast Advisory Committee in January to review preliminary findings from the Thurston Regional Planning Council’s Buildable Lands Report. The Buildable Lands Report acts as a measurement device—to measure whether urban growth is occurring as planned, and to determine how much land is available for the accommodation of future population growth. OMB will stay engaged in the development of the Buildable Lands Report. Thurston Thrives – OMB was invited to participate on the Housing Action Team of the Thurston Thrives initiative, and worked with other community leaders to develop an action plan to address housing affordability issues as they relate to public health. OMB helped to stress the importance of acknowledging the role of private enterprise and of promoting individual responsibility and self-sufficiency. The team’s work was presented to the County Board of Health in December 2013.

City of Olympia

City Council Changes – The Olympia City Council said goodbye to one of its members, Karen Rogers, who decided to not seek reelection in 2013. Cheryl Selby replaces Rogers on the Council. OMB looks forward to creating a good working relationship with her and the rest of the Council. Comprehensive Plan – The Government Affairs Committee heard from Leonard Bauer, Deputy Director of Community Development at its January meeting. Bauer and the Committee discussed Planning Commission and City staff recommended changes to the City’s Comprehensive Plan. The City Council began its work on the Comprehensive Plan in late January. OMB will track the progress of the Plan, and provide input as necessary. Due Process Settlement – As part of OMB’s settlement agreement with the City, Mayor Stephen Buxbaum, City Manager Steve Hall, and Director of Community Planning & Development Keith Stahley met with OMB’s Board of Directors at its January meeting. OMB members pressed the three with important questions regarding Parks funds and future Parks priorities and procedures. Olympia Master Builders (OMB) is currently working on and/or monitoring many issues related to the building industry. These are just a few recent highlights. To get more involved in the OMB Government Affairs Program, contact Adam Frank at adam@omb.org or (360) 754-0912.

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Lewis County

Impact Fees – Lewis County plans to introduce legislation this year to deal with the requirement for them to impose impact fees due to a fully contained community planned for the County. In the meantime, County staff have proposed that the boundary for Traffic Impact Fees include only the fully contained community. The County is revising and reviewing the Transportation Service Area and Impact Fee Ordinance internally, and OMB will meet with County staff to get up to speed on the process once that revision is complete.

City of Lacey

City Council Changes – The Lacey City Council welcomed new member Michael Steadman in January, and also appointed a new Mayor, Andy Ryder, and Mayor Pro Tem, Cynthia Pratt. Ryder and Pratt replace Virgil Clarkson and Jason Hearn, respectively, who both remain on the council. Comprehensive Plan – Lacey is in the process of updating its Comprehensive Plan. The City held a public open house in late 2013, with more opportunities for public input slated for early 2014.

City of Tumwater

City Council Changes – The Tumwater City Council welcomed new Council Member Debbie Sullivan in January. OMB supported Sullivan’s campaign and looks forward to working with her in the future. Capitol Boulevard/Brewery – The City of Tumwater continues work on its plans for redevelopment of Capitol Boulevard and the Brewery properties this year. OMB will continue to watch the process for developments, and provide comments and input where appropriate.


When Solutions Create Problems:

Smart Growth Fails to Deliver

Adam Frank GOVERNMENT AFFAIRS DIRECTOR

When I moved to the Seattle area from

Utah several years ago, I was astonished at the cost of housing, but I chalked it up to the high costs associated with such a large demand created by the desirability of the surrounding natural environment. After I was done being astonished, I realized that I would have to earn significantly more money each year to be able to afford to rent a place for me and my family to live. Buying a house of my own never even crossed my mind, and I never could afford housing on my own in Seattle. Fortunately for us, we could rely on the help and support of close family. As luck would have it though, I was able to find a great job in Olympia, and a house to rent in Lacey. But with a greater emphasis on “smart growth” (also known as “sustainable development”) in Thurston County, I fear that many might find themselves in a situation not unlike what my family endured in King County, or worse. The fact is, smart growth land use policies share to some extent the same pitfalls as many other trends that claim to save the environment: they tend to exacerbate the very problems they seek to address. Take, for example, one of the hopeful principles of smart growth: that higher density urban communities will lead to greater and more affordable housing options for a wide range of citizens. Affordable housing is a worthy goal, one shared by Olympia Master Builders. But I’m not sure how restricting land supply

could ever accomplish it. Normally, when the supply of buildable land is limited, the cost of that land increases. This, in turn, raises the cost of housing built on that land. Even one city staffer I spoke with recently agreed with that statement. Add in the high cost of permitting in some of our local jurisdictions—which are sometimes even higher for the very urban infill lots on which smart growth heavily relies—and you price a large number of potential buyers out of the market. The bottom line is that builders can’t afford to build if buyers can’t afford to buy. And in a city with already significant problems with homelessness and cost-burdened households, Olympia especially can’t afford to price any more homeowners and renters out of the market and out of homes. An added benefit to the artificial reduction in the supply of buildable land, say the planners, is a decreased dependence on the automobile. This, not coincidentally, is an overarching theme found in both the Olympia and Lacey Comprehensive Plans, and in the Sustainable Thurston plan. While reading up on smart growth policies in general, it didn’t take me long to realize that a major target of those policies is the carbon-emitting automobile. Because our communities will be more walkable, say the planners, we will reduce carbon emissions and save the earth. Congratulations, everyone, we did it! Unfortunately, it just doesn’t happen that way. The logical and practical consequences of the “traffic calming” mechanisms (think speed bumps, lane shifts, traffic circles, etc.) and fewer automobile lanes found in smart growth plans are just the opposite of their desired effect. Making roads less accommodating to vehicle traffic, while adding more and more people to the urban core will only create more congestion, longer commute times, and an increase in the very emissions that smart growth plans aim to curb, as cars idling in heavy traffic spew more of the dreaded carbon into the air. It sounds nice that more people will walk, ride their bikes, or take the bus everywhere, but even if a whole bunch of new residents in high-density urban areas did, we would certainly still be adding numbers to the ranks of those who currently don’t— thereby adding more automobile traffic to roads that are now designed to carry fewer automobiles. The fact is that individuals and families still cherish the freedom to live in big houses on big lots, and to drive their big cars that seat everyone comfortably out of the rain. Of course, smart growth and the arguments against it are really nothing new. We’ve all been at this for years. So perhaps a departure from theory into the realm of practice will be helpful. Portland, Oregon, is often a punching bag for smart growth skeptics, and for good reason. Portland employed urban growth boundaries, much like we have here, beyond which new single-family housing was tightly restricted, if allowed at all. According to a Fall 2001 article by Randal O’Toole in Regulation, in 1990, an acre of developable land was $20,000. But by 2001, the price for the same land had risen to $200,000. It doesn’t take a mathematician to realize that a 900% increase in land costs might make it difficult for some folks to afford a place to live. O’Toole further notes that automobile traffic and air pollution only continued to increase after Portland’s smart growth policies mandated traffic calming, fewer parking options at retail locations, and other steps intended to reduce automobile traffic—policies that can also be found in local Comprehensive Plans and the new Sustainable Thurston plan. People rarely alter their behaviors to conform to idealistic bureaucratic standards. Clearly, there are better ways to minimize traffic congestion than to build roads that clog See Solutions on Page 17

Chalk Line • 9


WHAT’S HAPPENING IN

HOUSING? by Laura Worf

“The prospects for home building in 2014 are bright,” according to the National Association of Home Builders (NAHB). On the national level NAHB is forecasting nearly a 25% gain in total housing starts, with a 32% pickup in singlefamily construction. These projections build on the gains from 2013 and with the expectation that the final numbers from 2013 will show that housing starts expanded by nearly 18% in 2013 for a total of 921,000.

what they see happening in their local market. Specifically they were asked if they agreed with the NAHB projection of a 25% increase in total housing starts in 2014 in their local area. The answers varied. In general the builders who do work in Thurston County were much more optimistic than those who do work in some of the smaller counties.

John Johnson, owner of Johnson Custom Homes located in Rochester believes “that’s a pretty fair statement.” He noted he has been getting a lot of Before people call a real estate Consistent with these calls in the first data, builder confidence agent they have already visited our few weeks of 2014 website and our Facebook page.” grew at the end of from potential 2013. The December customers. He Andy Gruhn NAHB/Wells Fargo added, “In the first Northwest Family Homes Housing Market Index two weeks of 2014 rose four points to 58 I have received as builders recovered from hesitancies in close to as many calls as I received in all of October and November. The increase puts 2013 from serious potential customers.” the index back up to the peak it reached in August before the rise in mortgage rates Harv Lillegard, owner of Lillegard and the uncertainty caused by the debt Construction located in Montesano sees and deficit debate cooled confidence. The a slower market. In Grays Harbor County, December index is 37 points above the Harv says the biggest challenge to an December 2011 level. increase in total housing starts is, “the market is still full of really good deals on Underlying these positive developments existing homes.” He said the challenge is a for housing is an economy that continues customer can purchase a foreclosed home to grow, albeit never in the high gear that for 50% of the value. The added challenge is typically seen after a recession. – brand new spec homes are selling for less than it costs to build a custom home. Several builder members of the Olympia Master Builders (OMB) were recently asked 10 • Chalk Line

Ray Bonney, President of Bonney’s B.J. & R. Const., Inc. located in Pacific County says, “I’m busy!” Ray’s been in business since 1980 and he said, “I’ve got a lot more work right now than I’ve had for the past six years.” Had added, “Most other contractors are busy in this area too.” Aaron Nester, Project Manager for Reliant Builders, LLC says, “It is slow here in Mason County compared to before the recession.” He optimistically added, “We are posed for the recovery!” Aaron agrees with Harv that it is hard to compete with existing inventory. He said, “There are fewer foreclosures on that market, so that is a good sign.” Adam Kugel, owner of Kugel Construction located in Lewis County, said “Lewis County tends to lag significantly behind Thurston County.” He noted the housing starts have been so minimal compared to 2006 and 2007, that a 25% increase would not be significant. Scott Bergford, President of Scott Homes, Inc. located in Olympia was the most enthusiastic and optimistic builder. He said, “I’m pretty excited.” He explained in the first three weeks of January he has commitments for the same volume of sales activity that he normally has in one full year. He noted, some customers he’s been working with for up to four years and they are now making the decision to move forward with their project. Scott went on to state, “Customers have accepted the value of their assets, and interest rates are


still reasonable, so there is a lot of pent-up demand.” Since these builders have successfully survived the Great Recession, they were asked “How have you changed the way you do business now to meet your customers’ needs?” In general, they all agree they have learned to produce a better product for less money. John Johnson, who has been in business since the late seventies said he has “gone back to the way I used to be prior to the boom.” He added that, “My customers are more informed. I spend more time planning the home before starting construction. They are more concerned with the details.” Harv Lillegard said he has focused on “producing a better product and better service” which has earned him a good reputation. Ray Bonney said he strives to make the home “as absolutely affordable as I can.” Andy Gruhn said his company has really focused on the quality of their website and social media. “We hired someone to do our website and social media. We felt it was necessary to have someone with this knowledge to reach younger buyers. Before people call a real estate agent they have already visited our website and our Facebook page.” He added, “We can’t survive on referrals alone anymore.”

Aaron Nester says, “We have really focused on customer service and our ability to meet our customers’ needs. We are far more flexible. Prior to the recession we had a set design, now we offer more choices for the homeowner.” Andrew Spear stated he is, “being flexible, meeting the needs that are out there, whether they are residential, commercial or remodeling.”

“Affordable quality.” He said his customers are willing to purchase medium line quality products rather than the high end products because they are being conservative in what they spend. Andy Gruhn said he is seeing more requests from his customers for covered patios. Open floor plans, 2000 to 3000 square feet and big backyards are also popular.

Adam Kugel commented, “Anyone who Scott Bergford said “My niche continues is still in business has had to tighten up to be super energy efficient, clear indoor and get really good air, cool looking, at what they do.” He and craftsman style “Being flexible, meeting the needs added, “We meet homes.” He added, that are out there, whether they regularly and give lots it used to be my are residential, commercial or of attention to our clients were “early remodeling.” customers.” adopters” people willing to pay Andrew Spear Lastly, the builders Andrew Spear Construction, premium for super were asked “What energy efficient LLC are your customers homes. Now, my looking for in a home clients just expect in 2014?” The main focus seems to be that they will get all that for a regular price. more value for less money. In summary, in the local five-county region John Johnson said, “My customers are that OMB covers, it appears 2014 will not interested in the fad of the day, but be a growth year for the home building something that will look nice in 15-20 industry with the amount of growth years.” varying depending on the county. The challenge for the home builders will be to Harv Lillegard said, “Smaller homes, more continue to refine their business models energy efficient.” to meet the needs of their customers – providing more value for less money. Adam Kugel noted “People are much more budget conscious.” Ray Bonney agrees. He says his customers are looking for

Chalk Line • 11


2013 Awards Given at Annual Awards Banquet

The Builder of the Year Award recognizes the most outstanding builder member for their dedication and contributions in furthering the cause of the Association and our industry during the past year. The Associate of the Year Award recognizes the most outstanding associate member for their dedication and contributions in furthering the cause of the Association during the past year. The Remodeler of the Year Award recognizes the Remodeler who makes the most significant­contribution to the Remodelers’ Council and the Association during the past year.

Hall of Fame Award Mark Shaffer

2013 President’s Award Janine Ezzell Chicago Title Insurance Co.

Builder of the Year Harv Lillegard Lillegard Construction

Associate of the Year Kim Asay Sterling Bank

Remodeler of the Year Mike Auderer Olympia Construction, Inc.

Top Recruiter of the Year John McKinlay Olympia Overhead Doors

Golden Hammer Scott Bergford Scott Homes, Inc.

Norman Paulsen Award Jay Goldstein, J.A. Goldstein Law Office, PLLC

Statesman of the Year Gary Alexander WA State Representative, 2nd District / Former Thurston County Auditor

The Norm Paulson Award is given to the member who best meets the criteria of leadership in the industry, participation in community affairs and high standards of professional ethics. The President’s Award is given by the President, at their sole discretion to one or more members for their continuous service to the Association. The Statesman of the Year is awarded to the elected official in our territory who has done the most for affordable housing for the year. Each year, the Associates’ Council awards the Golden Hammer Award to the builder member who best exemplified the ethics and standards of the Olympia Master Builders during the year. The Golden Hammer Award goes to the member who is extremely dedicated to the Association. The Top Recruiter of the Year is given to the member who recruits the highest number of new members during the year. In 1999, the Board of Directors established a Hall of Fame Award for members of the Olympia Master Builders. Limited to only one inductee per year, persons selected must demonstrate outstanding service to the Association, to the industry and to the community.

12 • Chalk Line


Education

A Blueprint for Success

Sally Darrow ACCOUNTANT/EDUCATION PROGRAM COORDINATOR

Olympia Master Builder (OMB) is offering

a variety of classes this year if you’re looking to increase your knowledge of a particular topic or want to obtain one of the National Association of Home Builders (NAHB) professional designations. Classes are offered through the NAHB and the Building Industry Association of Washington (BIAW) and most are held here at the OMB office. The classes provide collaborative, dynamic professional development opportunities. OMB also offers First Aid/CPR classes four to five times per year. For a complete list of OMB classes and their descriptions go to www. omb.org. There are several professional designations in building, remodeling, green building, and sales and marketing. These designations such as: Certified Graduate Remodeler, Certified Graduate Builder or Certified Aging in Place Specialist, offer excellent opportunities to improve your skills, advance your career, and be recognized for your commitment to professional growth. For a list of all the designations available and how to earn them go to www.nahb.org and click on the Designation Overviews & Resources tab. OMB members receive a discounted price for classes too.

Along with the classes offered at the OMB office you can find Webinars through NAHB to suit whatever your interest may be. Most webinars last one to two hours and can be viewed right at your desk on your computer. Get expert discussion on industry issues, trends, and best practices in NAHB’s five webinar series: Economics and Research, Policy and Finance, Design and Technology, Sales and Marketing and Business improvement.

all, each webinar counts for one hour of continuing education credit toward NAHB professional designations. Go to www. nahb.org and click on the E Learning: Webinars and Online Courses tab. There are also free webinar replays for members such as: “Builders Need Their Tools Back: Fixing the 2015 Codes; How to Prepare for an OSHA Inspection; OSHA Fall Protection: Generate leads and Sales with Internet Marketing.

Webinars are a great way to get quick, insightful information from a variety of perspectives no matter where you are. Take advantage of the Webinar Wednesday series.

Whether you’re a local home building association, builder or industry professional, NAHB and OMB offer training to meet your specific team’s needs. As a result you’ll develop a network of resources to build your knowledge and help you draw a blueprint for success.

Register for any webinar and enjoy unlimited access to the replay. Best of

2014 EDUCATION COURSES February 19: Ductless Heat Pumps vs. Other Heating & Cooling Systems: Cost Efficiency Comfort. 8:00 to Noon. Sponsored by Knauf Insulation. Cost is $50 per member/$85 non-members. Lunch is included. February 25: Indoor Air Quality for Energy Savings, Moisture Control & Health. 8:00 to Noon. Sponsored by Knauf Insulation. Cost is $50 per member/$85 nonmembers. Lunch is included. March 11: Financial Management. 8:00 a.m. to 5:00 p.m. Cost is $200 members/$255 non-members. GMB, GMR credits. March 19 & 20: Certified Erosion & Sediment Control Lead. 8:00 a.m. to 5:00 p.m. Cost is $250 members/$305 non-members for 3-year certified erosion & sediment control lead certification. March 21: Re-Certified Erosion & Sediment Control Lead. 8:00 a.m. to 5:00 p.m. Cost is $175 members/$230 non-members. If your Certified Erosion & Sediment Control Lead certification is about to expire this class is for you. March 25: Builder Assessment Review (BAR) & Professional Remodeler Experience Profile (PREP). 9:00 to Noon. Cost is $95 each. Result determine the course of study for obtaining your CGB or CGR. March 26: Construction Contracts & Law. 8:30 a.m. to 4:30 p.m. Cost is $235 members/$290 non-members. Call the BIAW to register for these classes at 360-352-7800.

Chalk Line • 13


How to Make 2014 the BEST Year Yet Mobile APP: The new mobile app is a tool the public will use when looking for a contractor. You can find this app in your app store by searching “OMB Mobile”. Your new business connection can be just one click away!

Amanda Cassman MEMBERSHIP MARKETING COORDINATOR

Olympia Master Builders (OMB) is

focusing on how we are going to make 2014 the most successful year yet. The staff has a fresh new outlook on what you the members need/want to make your business grow even more this year. We have put a new spin on sponsorships and advertisements that will get you just as motivated and excited as we are. Being new to Olympia Master Builders I truly understand how intimidating it can be to put yourself out there, meet new people, and make them invest and love something just as much as you do. Promoting your business is the one thing that will make your business grow from blueprints to a house and that’s what OMB is here to help you do. We are here to give you the tools to help promote and expand the business you love and are passionate about. Here are some major key business promoters that OMB has just for you:

Networking: Talking to someone oneon-one is the best way to make personal connection with someone and really express what you and your business is about. We host a Nothing but Networking several times a year. OMB also offers Coffee Connection, held the third Thursday of the month at different member businesses. Come have a cup of joe and a great morning snack while you chat it up with old and new faces from the community. If you want to add a special touch you can host any one of these events to show what your company is really about. Buyers Guide: We are on our second year of the Buyer’s Guide and we are so excited! This tool is an amazing way to promote and advertise your business. Not only do we have industry articles and member advertisements but we also include an index that makes it easy for the public to find any business they’re looking for. Let us know if you would like your business to be a distribution site for the Buyer’s Guide. We can get you a supply. Sponsorship Packages: OMB’s Sponsorship packages are the best way to advertise your company. Getting involved in all OMB events throughout the year is a no brainier. We host events that have

thousands of people interested in what you have to offer! In the past years we have offered standardized sponsorship packages for you, now we have a Build Your Own package. This is a great way for you to advertise however you would like, and get exactly what you want! We look forward to seeing you at all OMB events this year. Advertising: Olympia Master Builder’s main goal is to help your business grow. We have several great tools that help you get your business recognized to the public and to OMB members. Not only do we offer the items I have listed throughout my article, but we also have Chalk Line (bi monthly magazine), omb.org, Chalk Talk (weekly email), and OMB Buyer’s Guide online enhanced listings, available for advertising. OMB is excited for 2014 and what not only we have to offer you as members, but what you have to offer us. As a team we will make 2014 a year to remember of fun events, great networking, new business contacts and great memories. Help me help you make your business grow and have 2014 be your best year yet. Every

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2013 Top Recruiters Membership Committee Launches New Tools to Recruit

Carmen Rowe (2013 Membership Committee Co-Chair) presenting membership recruiting checks to Scott Nolan (left) and John McKinlay (right).

Get your supply of easy to use, OMB member benefits cards and start recruiting today! Need some help recruiting? Contact OMB’s Save M • Return oney! on Indu strial In Membership Marketing •H • Verizo ealth Insuran surance Progra ce Prog n Wirel m ram es • Many Coordinator, Amanda, other m s Cell Phone P ro oney sa vings p gram rogram (360) 754-0912 or amanda@ Grow Y s • FREE our Bu listing in siness omb.org and she can help distribu online and p ! ted to 10 rinted O MB ,0 • Three 00 potential cu Buyer’s Guid share the benefits with your e Hom st • Tour of e Shows omers H om • Many business associates. other ad • Networking es® Even vert

Congratulations to OMB’s Top Recruiter John McKinlay of Olympia Overhead Doors and runner up Scott Nolan of Four Leaf Carpet Cleaning! John and Scott both earned trips to the International Builder Show in Vegas! It Pays to Recruit!

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Recruit 3 New Members January 1-April 30

and earn a magical evening for you and a guest on May 31st.

It’s a three hour whirlwind of cirque, comedy, cabaret and live music, served up with a fabulous multi-course feast. As an OMB recruiter you will recruit for a chance to see “ON THE AIR,” radio like you’ve never seen! For more information, contact Amanda at (360) 754-0912 or amanda@omb.org.

Chalk Line • 15


Welcome New Members A-Action Group Utilities Sandi Krause 620 93rd Ave SE Olympia, WA 98501 360-943-9200 aactiongroup@yahoo.com Sponsor: Greg Stevens

Pillar Financial Group Zale Crawford 4520 IntelcoLoop SE, Ste. IE Lacey, WA 98503 360-236-0312 zale@pillar-financialgroup.com Sponsor: Janine Ezzell

Sound Shade and Shutter Kelly May 2410 Tyndell Circle SW Tumwater, WA 98512 360-742-3600 info@soundshadeandshutter.com Sponsor: Angel Anderson

Prestige Electric, Inc. Sean Porsche P.O. Box 8644 Lacey, WA 98509 (360) 456-2333 prestigewiring@gmail.com Sponsor: Paul Muldoon

Haberstroh Properties Arnold Haberstroh P.O. Box 765 Napavine, WA 98565 360-262-3634 agttt@comcast.net Sponsor: Scott Nolan

Quinault Logging Corporation Vickie Hollensteiner 101 Hill Road Aberdeen, WA 98520 360-533-8833 vickie.qlc@comcast.net Sponsor: Shirley Carter

Lassen Electric Tim Kaufman 301 N. Capitol Way Olympia, WA 98501 (360) 352-8512 tim@lassen-electric.com Sponsor: Tina Allen

Dohdoh Design & Development Alyssa Benson P.O. Box 7008 Olympia, WA 98507 360-967-4414 alyssa.benson@dohdoh.com Sponsor: Carmen Rowe

Veterans United Home Loans of Puget Sound Brooke Villano 5808 100th St SW Lakewood, WA 98499 253-582-2873 bvillano@vu.com Sponsor: Kim Asay

Thank You Renewing Members November through December 2013 25+ Pro-Build Sunset Insurance Agency, LLC 20-25 Years Hatton Godat Pantier Rainier Valley Construction, Inc. DeTray’s, LLC Gale Contractor Services Rainier General Development John Lupo Construction 15-19 Years Acme Fuel Actionaire, Inc. Brad Davis Construction, Inc. Drebick Investments, LLC Union City Plumbing, Inc. Washington Cedar & Supply Co. Olympic Telephone 10-14 Years Horizon Homebuilders, LLC 16 • Chalk Line

Northwest Containers, Inc. Nor-Cat, Inc. Hinkle Homes, Inc. Dr. Roof, Inc. Brooks Plumbing Co. Johnston Construction Company, Inc. 5-9 Years Strader Hallett, PS Advance Environmental, Inc. Trail Excavation Owens Davies Fristoe, Taylor & Schultz, PS Dave Rockwell Construction, Inc. Bayshore Construction A-1 Roofing, Inc. Olympic Door & Trim J. McCarthy, LLC Always Safe & Lock, Inc. Cascade Homes Custom Construction, LLC Reichert Shake & Fencing, Inc.

2-4 Years Four Leaf Carpet Cleaning Bliss & Skeen CPA’s South Sound Solar, Inc Habitat for Humanity of Mason County Evergreen State Builders Better Homes Home Improvements, Inc. Mister Sparky, A Division of Quality Electric, Inc. Home Carpet Warehouse, Inc. Pacific Air Heating & Air Conditioning, Inc. Carter Logging Rosen Supply Co. Rebuilding Together Thurston County 1 Year Greene Realty Group C & H Construction


National News The NLRB Poster Rule is Finally Put to Rest In a victory for NAHB,

The National Labor Relations Board (NLRB) announced on Jan. 6 that it will not seek Supreme Court review of the U.S. Court of Appeals decisions in the District of Columbia and the Fourth Circuit that invalidated the NLRB’s Poster Rule. The rule would have required millions of employers across the nation to post a notice of employee unionization rights in the workplace. NAHB is a member of the Coalition for a Democratic Workplace, which was a party to the poster rule case decided by the U.S. Court of Appeals for the District of Columbia. NAHB and other business organizations in the coalition maintained that the poster rule violated free speech rights, and amounted to little more than an imposed advertisement for union membership. By declining to mount a U.S. Supreme Court appeal, the NLRB will not be able to impose this rule which had been stayed by a temporary injunction. The Court of Appeals decisions invalidating the rule will now stand.

a union shop. Most notably, union wages and benefits are often much higher. In the April 2013 issue of Monthly Labor Review, the U.S. Bureau of Labor Statistics reported that wages are $3.51 an hour higher and benefits are $7.11 an hour higher in union shops. Union contracts may also harm worker productivity, making it difficult to reward exceptionally good performance or effectively discourage and rectify job performance that is subpar. For more information, email David Crump or Suzanne Beall at NAHB, or call David at 800-368-5242 x8491 or Suzanne at x8407.

Although it is difficult to quantify the effect of NAHB’s court victory on unionization, mostMA_4.25X5.5Ads_2011:Layout small business owners would agree are clearly 1 there 3/17/11 3:42disadvantages PM Page 1 to operating

National Association of Home Builders

Put your membership to work now. Money-saving discounts that benefit your business, your employees, and your family Visit

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for these and other participating companies.

Solutions continued from page 9 with traffic by design. One can only imagine the next wave of government regulations that will come once local governments realize that their “smart” growth policies have only led to more problems. Although, it is perhaps more likely that smart growth policies won’t be fingered as the culprit, which means that the blame will be deflected again onto the businesses and industries that drive our local economy. Hopefully, something more positive will happen. We should learn from the failures of cities like Portland, while looking for examples of success in other cities. I do think the market would dictate relatively higher housing prices in naturally beautiful areas like Seattle and Olympia. That is a simple calculation of supply and demand. But now that I know more, I am sure that state and local land use policies can and do severely alter the market in ways that the planners might not have intended.

Chalk Line • 17


Chapter Happenings Becky Rieger named 2013 Lewis County Chapter Member of the Year!

Erik Jensen presents Becky Rieger with the 2013 Lewis County Chapter Member of the Year Award.

Grays Harbor Chapter

The Grays Harbor Chapter held their January meeting at Grays Harbor Wine Sellars in Aberdeen. Bob Smith of Chimney Techniques stood in as guest chef, and cooked up Papa Murphy pizzas on his Green Egg BBQ. Guest speaker John Kliem gave an update on the Grays Harbor Shoreline Master Plan update process. Chapter officers were also installed for 2014. OMB President John McKinlay acted as installing officer to renew the oaths of office to Harv Lillegard of Lillegard Construction, Chapter President; Rusty Ruiz of Hung Right Doors, Associate Vice President; and Bob Smith of Chimney Techniques, Secretary. Ronda Sturgeon of Sturgeon Quality Construction, LLC was not present, and will be installed as Builder Director at a later date. The chapter will meet next on Thursday, February 6 at 6:00 PM at Gepetto’s in Montesano. The guest speaker will be Tim Gibbs of Greater Grays Harbor.

Lewis County Chapter

The Lewis County Chapter kicked off the new year at their January 15th meeting with a “Products and Services Roundtable.” The members present energetically shared 18 • Chalk Line

Above: Mason County Chapter Officers Top Right: Grays Harbor Chapter Officers Bottom Right: Lewis County Chapter Officers OMB President John McKinlay installed the Chapter Officers in January.

with their fellow members information about the products and services their company offers. The 2014 Chapter officers were installed by OMB’s 2014 President, John McKinlay. The officers are: President Erik Jensen, Jensen-Hall Construction; Vice President, John Johnson, Johnson Custom Homes, LLC; Associate Vice President, Becky Rieger, Environmental Design, LLC; Secretary, Rick Borovec, Twin Star Credit Union. Builder directors are David Danton, Lexar Homes, and Don Koidahl, MDK Construction, Inc. Associate Directors are Jason Kunz, AAG Insurance and Carmen Rowe, Jessica Jensen Law PS. The February 19th meeting will be held at 6:00 p.m. at Ramblin Jacks Rib Eye. Speaker details will be listed in Chalk Talk. The Lewis County Home & Remodel Show will be held on February 22 and 23 at the Southwest Washington Fairgrounds. Complete details are at www.omb.org.

Mason County Chapter

The new year brings fresh opportunities to create new relationships and strengthen old ones with county and local officials, and other members of the community.

The City of Shelton welcomes a new City Commissioner this year, to whom the Chapter has already reached out; and the Chapter will be meeting soon with County officials as well. Chapter officers remain the same for 2014, and were sworn in again at the January meeting. They are: President Aaron Nester of Reliant Builders, LLC, Associate Vice President Mike Gill of Pro-Build Shelton; and Treasurer Bob Love of Sunlight Woodenworks, Inc. Upcoming meetings will be held on February 18 and March 18. Speaker information will be listed in Chalk Talk.

South Pacific Chapter

The South Pacific Chapter will be meeting on Thursday, February 27th at 6:00 p.m. at the Lightship Restaurant(300 14th Street NW in Long Beach) to discuss how they would like to proceed as a chapter in 2014. All chapter members are encouraged to attend and provide their input at this very important meeting.


OMB Outlines Issues with Thurston County Interim Permitting Strategy Thurston County is still developing its plan to continue permit-

and permitting to continue in areas occupied by gophers, or designated as potential gopher habitat. However, the PHAM does not currently identify an approved mitigation bank or another such program to purchase credits. OMB expressed to the County that there must be at least a temporary system in place that allows mitigation in the event that large, off-site mitigation areas are still unidentified and unavailable once the listing goes into effect.

The first draft of the PHAM left unanswered a number of important questions about the future of building and development in areas deemed to be suitable habitat for gophers.

Finally, the PHAM assigns a value to sites that are neither occupied nor presently suitable for occupation by gophers, but that have the potential to become such. Therefore, any impact to those sites would factor into the debit calculation, even though in their present state the sites do not and could not support the listed species. OMB told the County that this an overreach, and that the PHAM should be limited to currently occupied lands and properly designated critical habitat.

ting once the anticipated Mazama pocket gopher listing goes into effect, likely by the last day of April. Recently, OMB met with Thurston County officials to express concerns with the current draft of the County’s interim permitting strategy, known as the Prairie Habitat Assessment Methodology (PHAM). The County is working to address the concerns, and will meet with OMB again soon to discuss revisions and additions to the plan.

First, the initial draft was silent on the effect of the gopher’s listing on currently vested lots. OMB told the County that builders and developers need to know what happens when they start building on a vested permit, and a gopher wanders onto the property. Builders must know what kind of liability they are facing to be able to factor additional risk and mitigation costs into their business plans. Next, the PHAM relies on the creation of mitigation banks—areas of land available for purchase as credits—to allow development

To be sure, these are not the only problems with the PHAM. OMB identified more than a dozen others. For their part, the County has been willing, and is preparing, to address OMB’s concerns, and OMB is hopeful that they will be addressed in a way that creates more certainty, fairness, and reasonableness in the process.

Welcome to the Building Industry Association of Washington! Your membership to the BIAW allows you access to one of the largest health insurance programs with Regence BlueShield in Washington. The BIAW Health Insurance Trust can offer your company a great deal of savings on health insurance.

SAVING Companies insured with the BIAW Trust put money back on your bottom line!

BENEFITS The BIAW offers affordable benefits through Regence BlueShield

SERVICE Members have access to the professionals at EPK & Associates and Capital Benefit Services exclusive vendors for the Trust.

Getting a quote is FAST and

EASY! Fill out the attached Getting a quote is quote request form and fax it back to 425.643.6728 or email FAST and easy! Call it to sales@epkbenefits.com. 1-800-545-7011 6 Feel free to give usext. a call at 1.800.545.7011 ext. 6 if you or email questions to have any questions. sales@epkbenefits.com.

Chalk Line • 19


PRSRT STD U.S. POSTAGE

PAID

OLYMPIA, WA PERMIT #159

1211 STATE AVE. NE OLYMPIA, WA 98506 $1.25 per copy 360-754-0912 800-456-6473 www.omb.org

SPRING HOME SHOW LINE-UP! The Lewis County Home & Remodel Show

Southwest Washington Fairgrounds-Blue Pavilion in Chehalis, WA

Saturday, February 22, 10 am to 5 pm & Sunday, February 23, 10 am to 4 pm

The OMB BIG Home & Garden Show

Saint Martin’s University - Marcus Pavilion in Lacey, WA

Saturday, April 12, 10 am to 7 pm & Sunday, April 13, 10 am to 5 pm

The Grays Harbor Home & Garden Show Grays Harbor County Fairgrounds in Elma, WA

Saturday, May 17, 10 am to 5 pm & Sunday, May 18, 10 am to 4 pm


Chalk Line Magazine Jan_Feb 2014