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July/August 2017






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Chalk Line July/August 2017

Table of Contents Page 4 MESSAGE FROM THE 2017 OMB PRESIDENT


Pages 8-9 Protecting Yourself and Your Business




Page 14

Pages 12-13


Growth and the Economy

LOOKING AHEAD - meetings & events JULY 26th - 12:00pm Quarterly Building Officials Meeting OMB Office

AUGUST 10th - 4:00pm Remodelers Council OMB Office

JULY 27th - 4:00pm Government Affairs OMB Office

AUGUST 15th - 4:00pm Associates Council OMB Office

JULY 28th - 9:00am Golf Tournament Riverside Golf Course Chehalis, WA

AUGUST 24th - 4:00pm Government Affairs OMB Office

AUGUST 3rd - 6:30pm Member Appreciation Night Tacoma Rainiers Game Cheney Stadium Tacoma, WA AUGUST 8th - 4:00pm/4:30pm Exec/Board Meeting OMB Office

AUGUST 26th - 6:00pm Lewis County Member Appreciation Night South Sound Speedway Rochester, WA AUGUST 28th - 4:00pm Membership Committee OMB Office

Meetings and Events are subject to change. For more details on these upcoming OMB events, go to

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s most of you know by now, Troy Nichols resigned from Olympia Master Builders (OMB) at the beginning of June to join Phillips Burgess Government Relations as a managing partner.

Following Troy’s announcement, the Executive Committee met to deliberate, which followed with a recommendation to the Board of Directors to promote Angela White, OMB's Communications Director, to the position of Executive Officer. The Board of Directors voted unanimously in favor of making Angela our new E.O. This decision, while not taken lightly, was an easy one. Angela is a proven asset for the Association, has demonstrated her ability to lead, and takes the Association's mission very seriously. As most of you know, Angela has been with OMB for nine years, and 4 • Chalk Line

Change in Leadership at Olympia Master Builders has served in several capacities during her tenure, including Communications Director, Government Affairs Director, and Membership Marketing Coordinator. Angela also brings a litany of association experience with her from prior employment. Angela started her new role on June 5th. I encourage you all to stop by and meet Angela if you haven’t already! To recap, over the past few years, OMB has had some significant accomplishments, most notably the favorable ruling we received from the Growth Management Hearings Board last year, when OMB led a coalition to sue Thurston County over its Mazama pocket gopher interim review process. Also, since 2014, 35 out of 40 candidates endorsed by The Affordable Housing Council (TAHC), OMB's Political Action Committee, have won their elections. The biggest TAHC win to date is their significant involvement in helping

We are excited for a smooth transition in the management of OMB and we look forward to continuing to advocate for better housing policies on behalf of the housing industry.

” to elect a 100 percent independent Thurston County Commission for the first time in a generation. We are excited for a smooth transition in the management of OMB and we look forward to continuing to advocate for better housing policies on behalf of the housing industry. Feel free to contact me at with any questions.

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Official Publication of the Olympia Master Builders 1211 State Avenue NE, Olympia WA 98506 Phone: (360) 754-0912 The Olympia Master Builders is a professional trade association representing 450 member companies located in Thurston, Lewis, Grays Harbor, Mason and Pacific Counties. Our members come from all sectors of the building trades and are committed to “building strong communities, one home at a time.”

Executive Committee

President Ron Deering, Northwest Family Homes First Vice President Karen McClennen Treasurer Erik Jensen Associate Vice President Debbi Boyd, Naberly, Inc. Second Assoc. Vice President Becky Rieger, Environmental Design, LLC Secretary Jon Jones, Washington Business Bank Immediate Past President Mike Auderer, Olympia Construction, Inc. Builder at Large John McKinlay, Olympia Overhead Doors

OMB At A Glance 2017 CHEFS ON TOUR - SAVE THE DATE! Friday, September 15th from 4:00pm-10:00pm Tickets will go on sale at the end of August. This year we will hold our first Chefs on Tour “prefunk” which is open to all ticket holders of the Chefs on Tour event ($30). The “prefunk” is from 6:00-8:00pm on Thursday, September 14th hosted by last year's "Best Chef" Dillinger's Cocktails and Kitchen.

Builder Directors

Scott Bergford, Scott Homes, Inc., John Erwin, John Erwin Remodeling, Inc., Janine Ezzell, Chicago Title Insurance Co., Andy Gruhn, Gruhn Homes, Inc., John Johnson, Johnson Custom Homes, LLC, Jennifer McDonald, Lifespan Construction

Associate Directors

Holly Constantine, Puget Sound Window & Door, Becky Rieger, Environmental Design, LLC, Rusty Ruiz, Hung Right Doors

Legal Counsel

Jay Goldstein, Goldstein Law Offices, PLLC

National Directors

Ron Deering, Northwest Family Homes, Inc., Karen McClennen, Bob Kagy, Print NW

State Directors

Tina Allen, Great Floors, Kim Asay, Umpqua Bank, Debbi Boyd, Naberly, Inc., Ron Deering, Northwest Family Homes, Inc., Stuart Drebick, Adroit Contractors, Inc., Janine Ezzell, Chicago Title Insurance Co., Karen McClennen, John McKinlay, Olympia Overhead Doors, Inc., Bob Kagy, Print NW, Michael Geisen, Gary's Vacuflo

Grays Harbor Chapter

President Harv Lillegard, Lillegard Construction Associate Vice President Bob Smith, Chimney Techniques, Inc. Secretary Rusty Ruiz, Hung Right Doors

Lewis County Chapter

President John Johnson, Johnson Custom Homes Vice President Becky Rieger, Environmental Design Associate Vice President Rick Borovec, TwinStar Credit Union Secretary Patrick Toby, Toby’s Electric Builder Director Toby Krause, Double Duty Land Management

Mason County Chapter

President Andrew Spear, Andrew Spear Construction, LLC Associate Vice President Julie Nichols, Whitehouse & Nichols Attorneys at Law Treasurer Patty Tupper, Tupper’s Floor Covering & Interiors, Inc.

South Pacific County Chapter

President Steve Waltemate, SAW Construction Co., Inc.

Association Staff

Executive Officer Angela White Communications Specialist Jill Williams Member Services Coordinator Jenni Hatfield Events Director Brianna Bedell Government Affairs Director Joel Baxter


Saturday, Sept. 16th


Sunday Sept. 17th Contact Brianna at as soon as possible if you have a project you would like included in the Tour of Homes.

OMB MARKETING ON SOCIAL MEDIA Our main marketing goal at OMB is to get our members names out there, bring awareness to your business and drive YOU more referrals. We believe that social media is an effective tool to achieve this goal. But, we need your help by following these three simple steps. 1. Like, follow, connect and pin us on each of the Olympia Master Builder social media platforms. 2. Send us photos of really cool projects you are working on. Email us details of upcoming events that you are involved in. Share tips and ideas you have relating to your industry. Let's us know what you are up to and we will promote it for you. 3. Share our posts, join our groups and repin us. For more information about setting up social media accounts or to submit posts, email Jill Williams at

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MEMBER APPRECIATION NIGHT! Thursday, Aug 3rd Tacoma Rainiers Game


Includes BBQ food, beer, wine, and unlimited soda and water T-Shirt included with each ticket! Treat your employees or your family! Kids welcome! Kids under three are free! Ten ticket maximum per company. Tickets went fast last year, get yours today!

Cheney Stadium, Tacoma Game Starts at 7:05 pm, gates open at 6:00 pm!

Sponsored by:

For more information call (360) 754-0912 or email


Membership Brings More. Membership Brings More! More Influence. As we grow, we will build more strength politically. A larger association brings more influence in protecting members from costly regulations. Our growth will also have a positive impact on State and National advocacy.



have been your Executive Officer for a little over a month and I can’t begin to tell you

how excited I am. It is truly an honor to serve Olympia Master Builders (OMB) in this capacity after nine years at the Association. I believe whole heartedly in the mission of providing affordable housing for all economic segments of society. I will continue the hard work of the Association to improve the construction industry and the business climate you work in every day. My top priority is building membership. It’s a simple priority affecting everything we do as an Association.

More knowledge. As people join, the knowledge base increases and so does the positive impact of peer-to-peer networking. There is good chance other members have been in your shoes and can offer potential solutions to issues you are facing in your business. The more we grow the opportunity for knowledge sharing grows too. More opportunity. More members means more opportunity to meet people you want to do business with. More engagement. As OMB grows we will produce even bigger and better events to showcase members to the community. There will be even more networking opportunity. The scholarship program will grow. The committees doing the hard work on behalf of the Association will grow. And the list goes on…. OMB has so much to offer, the message to potential members is “You can’t afford NOT to join!” OMB has a star ROII program, two affordable health insurance options, great discounts on products and services, regular networking opportunities, political advocacy, quality educational opportunities, and fun events. With your help, we will be spreading the word throughout the communities we serve.

OMB Member Benefits R.O.I.I.® Select R.O.I.I.® Select can help you LOWER your workers’ comp premiums and build a better, safer company in the process. This program offers a full suite of program benefits to help you maximize your return. Health Insurance Program Purchasing power, excellent benefits and rate stability are the cornerstones of the success of the BIAW Health Insurance program. OMB Health Choice Health Choice offers OMB members who do not qualify for the BIAW program many affordable health insurance options. The Education Program The Education Program offers upto-date, informative training courses throughout the year! Many classes help members work towards professional designations. Other Benefits: Two FREE company listings on and in the printed OMB Buyer’s Guide, seen by and distributed to thousands of potential customers. Members participate in the BIG Home & Garden Show at a discounted price. OMB puts on a fantastic Tour of Homes® & Chefs on Tour event, giving members a chance to showcase their signature projects to the public. OMB offers several networking events. OMB offers a variety of advertising and sponsorship opportunities, depending on the audience you want to reach!

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From the legal files...




W GUEST COLUMNIST Julie Nichols Partner, Mason County firm Whitehouse & Nichols, LLP

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hether it’s a $500,000 job or a $5,000 job, your contract is important.

There is no one-size-fits-all solution, and what you are going to want to use for a small remodel project is going to look different from a custom home contract. To start, a contract will typically identify the basics: who (the parties); what (the scope of the project); when (timeline); where (the property location); and how much (the price). In addition to the basics listed above, a construction contract often includes the following: A provision saying whether/how it can be added to or changed. This is where you would see language such as “No amendment, modification or change to this Agreement shall be effective unless it is in writing and signed

by both parties.” From a practical perspective, doing this avoids fights about change orders and add-ons. What happens when someone wants to terminate the contract? Your contract can define when the contract can end, acceptable reasons for terminating, and how termination must be communicated. These are important questions that depend on the parties and size/scope of the project. Attorney’s fees are another topic that is often covered in a construction contract. It is a common misconception that if you are “wronged” and have to go to court, you have the right to get your fees paid. But in Washington, the general rule is that you pay your own way, unless there is a contract term that allows you to recover attorney’s fees. This is the term that you see, for example, putting the other party on notice that “the prevailing party” in a dispute may recover attorney’s fees and costs. Your contract should also address the method for resolving a disagreement. In order to avoid ending up in small claims court or superior court, contracts often have a clause in your contract that specifies that any dispute will be subject to mediation or arbitration. But many people do not know the main difference between the two, which is that arbitrators hand down decisions (just as judges do) which can only be contested under certain circumstances. During mediation, the mediator attempts to facilitate a productive negotiation that results in a settlement, but the ultimate result depends on whether the parties can reach a resolution. Which method your contract specifies will depend on your circumstances.

PRACTICE TIP: Don’t wait until you have a problem to review your contract with your attorney. Ask your attorney to review your contract annually, and discuss any problems that have come up and whether your contract adequately addresses them. If you don’t have an attorney, visit the OMB member directory! Watch your email, OMB’s website, and Chalk Line for upcoming classes. As a member benefit, you get access to courses that specifically cover Contracts and Lien Laws. Take advantage when these classes are offered next fall!

PRACTICE NOTE: You cannot modify or change the wording; the statute specifies it has to be given in the exact form as the RCW and you have to keep signed copies in your file for three years. Review your files on each subcontractor you use. State law

If you are contracting directly with the owner/customer, chances are you must give the statutory notice in RCW 18.27.114. The best practice is to include it as a part of your contract. If this notice is not given in its exact form prior to beginning work on the project, your lien rights may be affected AND you may be cited as failure to give it is a violation of the contractor registration statute as well as the Washington Consumer Protection Act.

” presumes that any person working on your job who is providing primarily personal labor is your employee for workers compensation purposes -and it’s your responsibility to prove otherwise if you are audited. It does not matter whether you believe the person is an independent contractor, and regardless of whether the person has his/her own business. The law requires you to ensure that they meet each element of the 7-part test in RCW 51.08.195. For example, you bear the burden of proving that your subcontractors are operating legitimate independent businesses, and filing all appropriate tax returns.

Julie Nichols is a Partner in the Mason County firm Whitehouse & Nichols, LLP and currently serves as the Associate Vice President of the Mason County Chapter of OMB. Her practice is focused on real estate and helping small businesses navigate state and local regulations. She has served as both in-house and outside counsel for the Building Industry Association of Washington since 2007. She can be reached at This article does not constitute legal advice nor does it create an attorney-client relationship. Contact your attorney for more information or for review of your contract(s).

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Government Affairs


Olympia Master Builders (OMB) is currently working on and/or monitoring many issues related to the building industry. To get more involved in the OMB Government Affairs Program, contact Joel Baxter at or (360) 754-0912.

City of Olympia Olympia CAO for Great Blue Heron On April 3, the Olympia Planning Commission was unable to make a recommendation amending the cities Critical Areas Ordinance to include protections for Great Blue Heron Rookeries. If approved by the City Council, the CAO would establish a 200 foot year round buffer surrounding established heron rookeries and an additional 300 foot buffer during the nesting season (February 1 – August 31). Development within the year-round buffer would require mitigation and noise levels within both buffers to be restricted during the nesting season. Under this CAO an abandoned rookery would be protected for 10 years before restrictions would be lifted. OMB staff provided public testimony and written comment opposing the adoption of the CAO, requesting more research be conducted on the necessity of protecting the Great Blue Heron, as well as, the fiscal ramifications to tax payers. On Tuesday, July 11th, the CAO came before the Olympia City Council for a vote, where the council motioned to return the amendment for the Great Blue Heron to the Planning Commission until they are able to provide a recommendation. OMB staff will continue to voice concerns to the Planning Commission over this amendment, which city staff estimated should meet again on this topic in mid-August.

Washington State Hirst - Exempt Wells By the end of the regular 2017 legislative session, no bill was passed creating a fix to the Hirst Supreme Court decision on exempt wells. Last month, the Legislature has entered its 3rd Special Session of the year. Now that the Legislature has passed an operating budget, negotiation over SB 5239 (The Hirst fix) and the Capital Budget continue. BIAW is continuing to focus its lobbying efforts on finding a fix to Hirst before special sessions concludes. OMB will continue to monitor the progress of this issue.

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Thurston County Mazama Pocket Gopher Interim Permitting Process Two months ago, the County decided to eliminate the "nonproject (XD) application" for a gopher review. They stopped accepting new XD applications and provided customers only 30 days to convert applications to the more costly, formal "project application" for gopher review before dropping them in priority behind all filed project applications. On June 26th, OMB President Ron Deering, Board Member John Erwin and Government Affairs Director Joel Baxter met with the Thurston County Commissioners and county staff to discuss the recent changes to the Gopher Interim Permitting Process. This meeting was a formal discussion regarding concerns and solutions previously suggested by the OMB Government Affairs Committee Members to the Thurston County Resource Stewardship Director Brent Butler and Commissioner John Hutchings at the OMB May 25th Government Affairs Meeting. The June 26th meeting was set to discuss OMB member suggestions to improve the processing speed of applications without increasing the burden of county staff or eliminating the XD (non-project) application in its entirety. OMB's primary goals were to reinstate the XD application, to have current XD applicants position in-line for review restored to what it was before the process changed, and lastly, to allow customers/builders to hire private biologists on their own to conduct gopher reviews. Unfortunately, county staff were not receptive, resisting the suggestions made by OMB, which resulted in no final decision. OMB Staff met with Commissioner Chair Bud Blake on July 17th, where he agreed to hold a vote to allow gopher review applicants to hire private biologists to conduct site visits. This policy change would greatly reduce the backlog of applicants currently waiting for gopher reviews and allow people to get building sooner. OMB Staff will continue to pursue these changes and to update the Government Affairs Committee as additional information becomes available. Contact Government Affairs Director Joel Baxter at, if you are interested in joining the Government Affairs Committee.

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Development's Contribution to Growth and the Economy Growth Pays for Growth



t has been quite some time since the South Puget Sound has seen a housing boom like this one.

In March 2017, The US Census listed Olympia as the 23rd fastest growing metropolitan area in America. The boom has generated a much needed discussion on the city and county level about how best to respond to such growth. Most options break down into two basic schools of thought. 1. How to maintain this growth while keeping housing costs affordable for ALL segments of society and 2. How do municipalities appropriately offset planning costs and the increased need for additional services such as schools, fire and parks. There are a number of people who believe increasing impact and permitting fees is the answer. While, it’s certainly a direct approach to require

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that new development pay for planning and capital expansion through permitting fees and impact fees, it’s also unfair and adds to an affordable housing crisis which worsens by the day, and currently, no jurisdiction has found a solution. For instance, currently the City of Olympia collects around $35,000 $38,000 in fees before a shovel is ever put in the ground to start building a home. Proponents of increasing fees say great…this is money in the city’s coffers that will offset the cost of expanding services as the community grows accordingly! Well it’s not great at all, actually. According to the National Association of Home Builders (NAHB), for every $1000 increase in the cost of housing, 207 households are priced out of the mar-

ket in Thurston County. The potential money housing can bring into a city far outweighs the $30,000 in fees. In fact, according to NAHB’s 2013 Metro Area Impact of Home Building study, the 312 houses built in Olympia in 2012 brought in $65.8 million in local income, $11.2 million in local taxes and other revenue for local government and supported 1,107 jobs in the first year. While much of this economic benefit comes in the form of tax revenues, living wage constructions jobs and material cost, to understand how growth already pays for growth, it is essential to look at the ripple effect the construction industry creates in our community. Of the totals mentioned above, a large fraction of that economic benefit in the first year is generated by the “ripple effect” created by the construction industry. That’s the secondary impact of wages and profits earned by construction companies and workers being spent on locally produced goods and services. For instance, of the 1,107 jobs created, 420 are not related to the construction industry, but rather are created by profits and wages of those companies and workers living here being reinvested in the local economy. Those goods and services generate $23 million in local income and $2 million in local government revenue. This income is in turn spent and more jobs and tax revenue are created as the benefits of growth ripples out through the rest of the community. But, the most important benefit of growth is the recurring long-term economic benefits to the community, once these homes become occupied. The NAHB study concluded, the recurring impact of the 312 houses built in Olympia in 2012 brings in an additional 183 jobs, $9.8 Million in local income and generates $1.9 million in local taxes, fees and other government revenue, annually. The most significant impact that growth has on the economy does not occur during construction, but rather the stable, sustained, long-term revenue new home owners inject into the community upon occupancy.

The NAHB study concluded, the recurring impact of the 312 houses built in Olympia in 2012 brings in an additional 183 jobs, $9.8 Million in local income and generates $1.9 million in local taxes, fees and other government revenue, annually.

During an economic uptick, like the one we are experiencing now, I understand the attraction to impact fees. After so many contractors were forced to closeup shop during the recession, years later, there is a shortage of builders, and thus an even worse shortage of housing, both affordable and otherwise. This shortage artificially inflates housing cost because the market is unable to meet demand. It is true that people with the money to do so, will still be able to buy these homes after permitting fees are increased or an impact fee is added. The problem is, regardless the reasoning for increasing a fee or adding a new one, there are always families on the financial brink of home ownership, but

every time housing cost increases, the gap widens between hard working families and their dream of owning a home. The next time you hear an argument for raising housing cost, like a council member saying “growth should pay for growth,” explain to them that growth already does pay for itself. And the cheaper a house is to build, the more families there will be able to afford them. The more our local government encourage sustainable growth with policies like these, the more the long-term economic benefits of growth through jobs and property and sales tax revenue will outweigh the short-term benefits of adding and increasing up front building costs through impact fees. So, the next time you hear someone say “growth should pay for growth,” take it as an opportunity to educate them on why it already does and that increasing building fees will never make housing MORE affordable, and such policies only limits growths ability to pay more.

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Welcome to Our New Members! Joined in April and May 2017

Academy Mortgage Corporation Kathy Randich 673 Woodland Square Loop SE Suite 401 Lacey, WA 98503 (360) 999-5901 kathy.randich@ Sponsor: Ron Deering Artistry Stone Works Brian Johnson 6303 Rich Road F Olympia, WA 98503 (253) 582-2073 Sponsor: John Erwin Build it Boys Construction John McEntyre 18324 Cook Rd SE #7 Yelm, WA 98597 (360) 529-0450 Sponsor: Becky Rieger Capitol Duct Cleaning Adam Lawrence 1001 Cooper Point Rd SW Suite 140-268 Olympia, WA 98502 (253) 381-9533 office@ Sponsor: John Erwin Community Youth Services Jason Lucarelli 711 State Ave NE Olympia, WA 98506 (360) 701-6593 JLucarelli@ CommunityYouthServices.Org Sponsor: Chuck Hopkins

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Creative Ink and Embroidery Kelly Presley 1986 Steele ST. SE Olympia, WA 98501 (360) 943-0487 Sponsor: Debbi Boyd Distinctive Tile and Stone Matthew Koch 7860 29TH Ave NE Suite A Lacey, WA 98516 (360) 455-7276 matthew.koch@ Sponsor: Bob Kagy John L Scott Lacey Gergen Robinson 8825 Tallon Lane NE Suite B Lacey, WA 98516 (360) 667-5100 Sponsor: Ron Deering Liberty Mutual Insurance Jake Eisen 1550 Irving Street SW Suite 202 Tumwater, WA 98512 (360) 522-0022 Sponsor: Debbi Boyd Steelhead Framing & Drywall, Inc. Dan Parker PO Box 1537 Shelton, WA 98584 (360) 490-7880 Sponsor: Stuart Drebick

Thank You Renewing Members! Renewed in April and May 2017

25+ Years: Construct, Inc. Mark Shaffer Olympia Federal Savings Olympia Fireplace and Spa Mr. Electric Boulton Insulation Company Crawford Construction, Inc. Lakeside Industries Bayview Building Materials of Olympia

20-25 Years: Precision Pipe Fabricators John's Plumbing & Pumps, Inc. Western Washington Construction Boistfort Valley Water Everson Asphalt Paving, Inc. Olympic Heating & Cooling, LLC LTJ Builders, Inc. Black Hills Heating & Air

15-19 Years: Skyline Pump & Machine Co., Inc. OSG Dozing, LLC Tru Truss, Inc. Capital Heating & Cooling Black Diamond Roofing, Inc. TwinStar Credit Union Brown Building Contractors Bailey General Contractors, LLC The Bathroom, LLC Mixx 96.1 KXXO Tupper's Floor Covering & Interiors, Inc. Wells Fargo Home Mortgage



10-14 Years: Reliable Electric, Inc. A Personal Touch Painting, Maintenance & Remodeling, Inc. Plumb Line Plumbing House Brothers Construction, Inc. Home Resource Company, Inc. Al's Welding & Steel Fabrication, Inc. Washington Business Bank SoundBuilt NW, LLC H & R Waterworks, Inc. / The Water Company Fireside Home Solutions Olympic Iron Works, LLC Lillegard Construction Karen Jerome McClennen

5-9 Years: Rosenbach Plumbing, Inc. Bud's Lumber & Electric Frost & Company, PS C.T. Building, Inc. Morgan Stanley Smith Barney A Glass Enterprise, Inc. EuroCraft Painting, LLC Reliant Builders, LLC Olympia Construction, Inc.

2-4 Years: Elite Cleaning of Washington, Inc. Seabrook Construction Jesfield Construction Company, Inc. Propane, ETC Bucks Logging, Inc. Pacific Rim Log Scaling Bureau Craig's Asphalt LLC Prime Lending Toby's Electric, LLC Artistry Stone Works Interior Dimensions Precisionary, Inc. Knutson Plumbing

One Year: Sandrini Restoration, LLC Washington Water Service Company AAG Insurance

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

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Chalk Line July/August 2017