The North Peninsula Building Association represents builders and associates of the building industry. We advocate constant improvement of building and business practices to provide quality construction in our community.
Vol. 10, Issue 4
31 My Way, Sequim, WA 98382
4th Quarter 2017
NPBA Builder’s Cup Golf Tournament was a hole-in-one success The 18th annual NPBA Builder’s Cup Golf Tournament was by all accounts an overwhelming success! The weather was once again ideal for golf at the award winning Cedars at Dungeness Golf Course. Garrett Smithson and staff did a great job in making the tournament run smoothly along with Mike Thomas of Lakeside Industries (Golf Chair), Kasi O’Leary and Sheena Younger of First Federal (Golf Committee) helping NPBA staff manage tournament details. The event was well attended, with most notably, all sponsor-
ships being sold including the new ‘Hot Doggin’ It’ secured by Tracy’s Insulation. Special recognition and thanks goes to ongoing Tournament Sponsor First Federal, Dinner Sponsor Olympic Peninsula Title and Tournament Prize Sponsor Wilder Auto & RV for graciously offering a vehicle up for grabs once again. The winners of the 2017 Builder’s Cup in the Championship Flight category is, Team BIAW consisting of– Art Castle, Jim Jones, Kevin Russell & Mark Mitrovich; in the Callaway Flight the winning team was J&J Construction made up of– Scott
Schwagler, Mike Politika, George Drake & Dave Cameron. Congratulations team J & J Construction for winning in the same category two years in a row! The NPBA staff and Board of Directors would also like to thank its many dedicated supporters and volunteers who spent their day helping on the greens with fun and engaging games and giveaways for the players as well as those who donated the numerous raffle and gift bag prize items. Participation is open to the public so be sure to call the NPBA office to get your team scheduled. We look forward to seeing you all next year!
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4th Quarter 2017
President’s Point: Hello Everyone:
For those of you who may not know it is my pleasure to announce that with the hard work of our staff we are now in our new building at 31 My Way in Carlsborg. Make sure you stop by and check out our new space and say hello to our staff. The purchase of this property was made possible with the profits from the subdivision we developed to serve the Future Builders Program. The loss of the Future Builders program a number of years ago was caused by a combination of a bad economy and also changing academic requirements which gave students less flexibility to participate in the program. With the unfortunate end to that component of the program the remaining lots were sold and the NPBA Board had the foresight to invest the money with the thought of purchasing our own building in the future. It is the board's hope to take something negative and turn it into something positive for our members and the community. Not only will this location give us more visibility to promote our members and this association it will also give us the place to grow and provide for training space to educate our members and their employees. The hope is that we can also create a training center to replace the Future Builders Program where our youth can be trained to be the future employees and contractors of our area. Besides government regulation one of the biggest challenges facing our members, based on my conversations, is finding employees. Our goal is to help resolve that issue to not only help the members but our community as a whole. Speaking about government rules and regulations affecting members and land owners throughout the state is the “Hirst Decision” which has still not been settled by our Legislature. It has affected the drilling of single family residential wells in a number of locations and requires very expensive hydrogeological studies for each well site to determine if the well will impact the minimum instream flows of local streams and creeks. Although Clallam is not currently included it has an effect throughout our state. It is time for our Legislature to work together to untangle this mess. I encourage you all to contact our legislators to work together to resolve this issue. Another update in regards to government regulation is the Shoreline Master Plan in Clallam County. As required by state law, it has been updated and will affect all shorelines throughout the county including salt water, creeks, streams and also lakes. It is currently under review by the planning commission and will be ultimately heard and eventually adopted by the Clallam County
Angeles Millwork Celebrates Annual Customer Appreciation Day
The weather was perfect for over 400 customers and contractors that attended Angeles Millwork Customer Appreciation Event this year. They were treated to scratch made smoked pork, slaw, sides & cupcakes along with 15 Building Supply Vendors that were in attendance doing demos and giving out samples to attendees. Angeles Millwork also gave away over $1000 in local gift cards and prizes to those that entered the raffle promotions. Angeles Millwork wanted to thank all of those that attended and have supported the store through another successful year here on the Olympic Peninsula.
To whom it may concern, The Hirst decision has created unprecedented uncertainty for landowners who want to build a home that uses a household well. Land will be de-valued because water availability is uncertain. Property tax will shift from rural properties to suburban and urban properties. This impact is not only to rural property owners but also rural economic development. To the extent building can’t occur in rural areas will mean that more high density is required in suburban and urban areas. The water use in urban areas for annual growth in the Puget Sound region equals decades of new household wells. The problem is, there needs to be room for growth in both urban and rural areas in our state. Not everyone wants to live in a high-rise apartment building. Thank you, Tracy Gudgel Commissioners. It will increase shoreline setbacks in a number of areas and will affect many property owners ability to develop their property along shorelines. Please educate yourselves about the proposed update, become involved and let your voices be heard. If you’re not a currently a member please get involved because together we have a stronger voice to protect the industry we all care so deeply about, it provides us all with a living while supporting our local economy. Remember to do business with a member, whether it’s a builder, supplier, insurance agent or other associate member. Support our local economy while supporting those who believe in our industry! Thanks, Tracy Gudgel, President, North Peninsula Building Association
Vol. 10, Issue 4
4th Quarter 2017 • 3
Clallam County Market Report January 1 - August 31, 2017 Doc Reiss, Managing Broker CRS, GRI, Realtor® (360) 504-3300 office • www.docreiss.net The weather may be heating up but traffic is cooling in the housing market. The typical season for home buying is May to August and we are on the downward slope of the bell curve. In August, 77 home sales in Sequim were down 30% from the level set same time in 2016 but up from the number sold in July (57). The average home sold came in at $357,507, while the average home sold was up twenty percent over prices in 2016, the total dollars generated was down from $32,404,341 to $27,528,053. The lack of inventory has buyers scrambling to get the home they want and the days that a home stays on the market is reflective of this. Last August the average home that sold was on the market for 75 days, this August it lasted 36 days. Looking at the year so far, the average home has gone from being on the market 76 days to only 54. Year-to-date, overall home sales in Sequim are currently down five percent in number, from 536 in 2016 to 505 this year, however the uptrend continues. Total sales dollars are up ten percent at $168,460,172 and the average home sold for $321,428 – an increase of sixteen percent. August saw a reversal of the land trends we have been seeing. Over the past several months we have seen more of the cheaper parcels selling; unit volume was up and dollar volume was down. This month has seen a dramatic turn from August ‘16. Parcel sales totaled 25 this month, 6 more than last year, an increase of 34%. The average parcel purchased shot up 39% from $63,383 last August to $102,320. Total dollars went up 147% from $1,361858 in 2016 to $2,558,000. Looking at Sequim land sales so far this year, the number of parcels sold is up 23% at 175. Dollar volume is up 13% at $16,639,392. The number of inexpensive lots sold so far has brought the average unit price down eight percent from last year’s number which is currently at $95,082. Shifting to the other side of the county, August was steady in the number of homes sold when compared to the same month the previous year but the average sold price and the dollar volume dropped a bit. The Port Angeles market had 63 homes sell, but the average home sold for seven percent less than last August. Average price was just over $267,800. This was caused by eight percent of the homes sold going for under $165,000. Total dollar volume was down seven percent at $16,837,327. The number of days the average home was on market dropped from 84 in August 2016 to 41 this year. While August may have shown a slight decrease in average price, looking at the market yearto-date shows the same trend we’ve been seeing continue. So far there have been 438 sales, an increase of 18%. The average home sold is up eleven percent in price at $260,092. The total dollar volume has gone from $86,940,832 this time last year to $113,920,345, an increase of about 18%. Homes are selling about 35% faster than last year with a ‘days on market’ time from 87 days to 57 days this year.
Land sales in the Port Angeles and western Clallam areas are not as vibrant as those in the Sequim and eastern county areas, but the trend is evident – sales are up. Last August there were seven parcels sold in the Port Angeles market, this year we’ve had nine. The average parcel sold rose from $78,325 to $128,594, an increase of 64%. Total dollar volume has more than doubled at $1,102,350 from $548,277. Looking at the year-to-date numbers, in 2016 there were 59 sales by this time, this year 75. The average parcel price is up eight percent to $82,838 and the total dollar volume is up 27% to $6,157,875. If you are looking to sell, remember that a small investment with a member of NPBA, a licensed and bonded contractor, could substantially increase the value of your home on the market. Contact your Realtor for suggestions and get an NPBA member to give you a quote.
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*Must be enrolled in the PUD’s new SmartHub account management web portal for both Auto Pay and Paperless billing for a full 12 months to receive the one-time $5 credit.
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4th Quarter 2017
The Investment of Membership By Diana Johnson, Executive Officer North Peninsula Building Association Recently I was questioned in regards to the investment cost of membership with the NPBA. This question comes up every now and again with either new members or those trying to figure out what exactly the North Peninsula Building Association does. There are a lot of angles I can take in answering a question like that since our association not only serves our members but the general public as well. Since this recent question came from a member company I was more than happy to answer from a membership standpoint; there is no such thing as a bad question and as always I appreciated the opportunity. I went on to explain that membership with the NPBA is threefold with about $200 of it going to the National Association of Home Builders and $100 going to the Building Industry Association of Washington State leaving about $135 for your local county representative the North Peninsula Building Association. More importantly, I highlighted the importance of the behind the scenes advocacy that we do nationally, statewide and countywide for everyone. The very foundation that the NAHB, BIAW and NPBA were built on is to protect the American Dream of affordable housing opportunities for all, while working to achieve professional success for its members who build homes and our communities, therefore providing jobs which in turn strengthens the economies we live in. All three entities go to bat for you as a business 365 days a year on major governmental policy issues like regulation and affordability that often times adversely affects what WE in the industry do. Our efforts are to also provide and unite those in the building industry with education and networking opportunities, promotion and designations as well as many other benefits. As we who work in the industry are well aware, right here in Washington State we have a government that has made OUR industry among the most regulated in the nation. BIAW leaders work full time representing all of us in this industry along with the 8,200 member companies who want regulation and taxes limited so we can continue to operate in a free enterprise, I shudder to think what building would look like in Washington State without this support. Locally we are fortunate enough to have our Immediate Past President who not only has been directly involved with NAHB but will be continuing on to be 2018 BIAW President; he also serves on the Washington Affordable Housing Council along with other NPBA state directors. I view this as a big win for us here in Clallam County to have a more personal
over them with you to ensure your are making the most of your membership with us and receiving the value you desire. Thank you!
"Do Business With A Member"
NEW MEMBERSHIP DIRECTORY and linear voice at the state level and something for all of us to capitalize on. Back at the beginnings of our non-profit association a group of builders felt so profoundly about the work we do that they took money from their own pockets, money they didn't have, to keep this association afloat as we do not garner any corporate monies nationally. We are our own entity operating on a nominal budget. My Budget and Finance committee understands firsthand the volatility of this market we work in and I am always humbled by the attention that is given to the smallest of details in consideration of everyone's investment. Many lives were built on this industry and continue to do so today much like yours, mine and so many others currently working in Clallam County. I understand the question of value in our non-profit association but would like it to be viewed more as a responsible investment; the most valuable one, one that directly affects our community, the work you and I do, our businesses, our community, and the people we serve. We make a specific effort to provide additional value to all of our members whether it be via our membership directory, which goes out to the public now twice a year, pages/articles in our newsletter, ‘Building, Remodeling & Energy Expo’ booth discounts, membership networking mixers etc. We hope that all of the many ways we provide value is taken into consideration with your membership with the NPBA. In the end, your membership is what you make it, you get what you put in as is the case with any organization. If there are other ways we can incorporate value for any member company, as always, we are open and willing to explore those opportunities with you. P.S Speaking of ROI (Return on Investment), we have a program called ROII Select offered to our member companies in which you can get a rebate for the L&I that you pay, many of our members receive monies back that far exceeds their membership dues. Please give us a call for more information on ROII Select, 360-452-8160. You can also call BIAW directly and speak with Jenn Kavanaugh the Administrative Services Director at 360-352-7800, ext. 123, she's really great and can help walk you through the process to see if it's a fit for your business. There are more money saving programs that we offer that may benefit your company and I'd love the opportunity to go
Vol. 10 , Issue 4
Requirements for Wiring in Exterior Walls – Siding Nail Installation WAC 296-46B-010(6) was recently changed. To provide additional protection to wiring from damage by siding nails, the language underlined below was added: Prior to completion of an exterior wall cover inspection, either: a) the exterior shear panel/sheathing nail inspection must be completed by the building code inspector and where siding nails or fasteners which penetrate into the wall cavity are to be used, all siding must be installed; or b) all wiring and device boxes must be a minimum of 2 ½ inches from the exterior surface of the framing member; or c) all wiring and device boxes must be protected by a steel plate a minimum of 1/16 inch thick and of appropriate width and height installed to cover the area of the wiring or box. Notice that there are three options – a) or b) or c). The new requirement for installation of the siding was placed as an addition to paragraph a), the first option of requiring the shear panel/sheathing nail inspection to be completed. The second and third options of placing all wiring and device boxes at least 2 ½ inches from the exterior surface of the framing member (i.e., stud), or protecting the wiring and boxes with steel plates is still available. Typically, if the exterior walls of a dwelling are of 2X6 studs, there won’t be a problem because the wiring and deep device boxes will have at least 2 ½ inches of clearance. Exterior walls with 2X4 framing will typically require the siding to be installed unless additional protection for your wiring is provided.
NPBA Welcomes New Member!
4th Quarter 2017 • 5
1st PLACE Best Title Company
Voted Best Title Company in Clallam County Olympic Peninsula Title has been serving customers in Clallam County for 35 years. Started by Chris and Sue Zook in 1982, we continue to be family run and have grown our operation to include 27 employees in our two offices. Chris stepped back from running the day to day operations in 2005 when daughter Maureen Pfaff came on board as the CFO. This year Maureen took over as President of the company and together with her husband Jason, who joined the company in 2013, they continue to build on the strong foundation of fast, friendly, professional service that has helped OPT become one of the largest providers of title insurance and escrow services in the county. Do you know anyone who needs help keeping track of a private loan? We are the only local provider of True Escrow Contract Collection services on the peninsula. We collect the payment from the borrower, send it on to the lender and handle all the bookkeeping and annual tax reporting for both parties. We also hold the original loan documents and handle the reconveyance paperwork after the loan is paid in full. For more information on all the services we provide, please go to our website at www.olypentitle.com or drop by our offices in Port Angeles and Sequim. We would like to say thank you to our customers and industry partners for voting us the Best Title Company on the Peninsula in 2017. We love what we do and strive to provide the best service to each and every customer who walks through our doors. Remember, for real estate questions, title insurance, escrow and contract collections services opt for Olympic Peninsula Title!
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The Co-op Farm and Garden
The Co-op Farm and Garden, in business since 1936, is a leader in the country lifestyle marketplace. They carry a wide selection of products for farmers, ranchers, homeowners, and pet owners. An active supporter of the community, The Co-op sponsors the Irrigation Festival Royalty Pageant and Air Affaire. They regularly contribute to the Back Country Horseman, 4-H, and FFA. The Coop is located at 216 East Washington Street in Sequim. Call them at 360-683-4111. The Co-op is open 7 days a week.
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6 • Vol. 10 , Issue 4
4th Quarter 2017
First Federal has been your community bank for over 94 years, and we continue to grow and give you the best customer service possible. From Personal Banking, Business Banking, Lending, Investment Services and many great services, we truly strive to offer choices and competitive rates. Whether you are just building, refinancing or purchasing your first home, we can help. We have many mortgage programs; Conventional, USDA, VA, Construction and more, to fit your needs. Come see a loan officer today! First Federal looks forward to helping you reach your financial goals and dreams.
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Vol. 10, Issue 4
4th Quarter 2017 • 7
Hines Homes receives Excellence in Remodeling Award NPBA member company Hines Homes was recently awarded the BIAW Excellence in Remodeling award for the $150,000-$300,000 entire house category. The EIR awards program recognizes outstanding remodeling projects throughout Washington State. This year, participants from six home builders associations from across the state submitted
entries in 19 categories. Hines Homes shows their dedication in ensuring every customer loves their home with an amazing end product. Andy Hines brings with him the design, creativity and attention to detail in every one of his creations, while providing superior quality construction and delivering his complete focus to each of his projects. The awards are open to all NPBA members who have completed a project that meets the requirements of a category. Be on the lookout for the next submission notice so you and your project can be
WHY BE AN NPBA MEMBER? North Peninsula Building Association ✔ INCREASE YOUR BUSINESS OPPORTUNITIES AND COMMUNITY RELATIONS ✔ BUYING ADVATAGES WITH DISCOUNTED RATES ON PRODUCTS AND SERVICES ✔ 3-IN-1 MEMBERSHIP INDUSTRY INFORMATION AND INVOLVEMENT ✔ OPPORTUNITIES TO ENHANCE YOUR SKILLS AND KNOWLEDGE
JOIN TODAY! 360.452.8160 31 My Way, Sequim, WA 98382 www.npba.info
After highlighted at state too. This recognition was well deserving after working
twenty years in the custom home industry, congratulations Andy!
6 • Vol. 10 , Issue 4
4th Quarter 2017
8 • Vol. 10 , Issue 4
4th Quarter 2017
Are you building the American Dream?
2017 OFFICERS AND BOARD OF DIRECTORS
Tracy Gudgel, Zenovic & Associates Inc. President Scott Schwagler, J&J Construction Inc. 1st Vice President Derek Adamire, Adamire Concrete & Excavation Inc., 2nd Vice President Kasi O'Leary, First Federal, Treasurer Andy Hines, Secretary Kevin Russell, Kevin Russell Construction Immediate Past President Larry Hanna, LP Hanna Construction Builder Director Greg McCarry, Westerra Homes Builder Director/State Director Chuck Daniel, ACR Construction, Builder Director Kelly Fox, Angeles Millwork& Lumber Company and Hartnagel Building Supply, Associate Director/State Director Matt Ward, ONA Landscaping, Associate Director Mike Thomas, Lakeside Industries, Associate Director Bill Roberds, Excel Utility Construction Inc. Life Director Roger Wheeler, RJ Services, Life Director Diana Johnson, Executive Officer
BIAW’s Building Industry Insurance Program member insurance agents can offer BIAW members competitive rates on products designed specifically for the building industry: builder’s risk, general liability, builders warranty and structural warranty. See if they can help you at BIAW.com or contact Karen Hall at 360-352-7800, ext. 137. BIAW’s Building Industry Insurance Program.
BiiP Management Companies
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BIAW is not a licensed insurance broker or agent. In referring the user to an insurance company or licensed agent, BIAW is not selling insurance or providing coverage advice or counsel relative to coverage. BIAW does not solicit, take, or process insurance applications, nor does it negotiate or execute insurance contracts. For policy questions, or to obtain insurance, please contact a licensed member agent or broker. BIAW is paid an advertising fee by the participating insurers.
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