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VOL. 45 | NO. 5
PUBLISHER Tony Larson EDITOR Matthew Anderson CONTRIBUTING Tammi Loucks WRITERS Mike McKenzie Dustin McKissen Lauren Murphy Mary Louise VanDyke GUEST Tony Cook COLUMNISTS Liv Finne Kris Johnson Brooke McClary Roger Stark, MD Josh Wright ART DIRECTOR Whitney Pearce PHOTOGRAPHY Tiffany Brooks CUSTOMER SERVICE Ashley Butenschoen ADMINISTRATION Danielle Larson Cover Photo by Tiffany Brooks
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WBA BOARD OF DIRECTORS: BOARD CHAIR: John Huntley, President/CEO, Mills Electric Inc. EXECUTIVE COMMITTEE: Pam Brady, Director NW Gov’t & Public Affairs, BP Cherry Point; John Huntley, President/CEO, Mills Electric Inc.; Doug Thomas, President/CEO, Bellingham Cold Storage; Josh Turrell, Partner, Larson Gross PLLC; Josh Wright, VP/Broker, Bell-Anderson Insurance BOARD OF DIRECTORS: Tyler Byrd, CEO, Red Rokk Interactive; Jane Carten, President, Saturna Capital; Andy Enfield, Vice President, Enfield Farms; Bryant Engebretson, Managing Principal, Tradewinds Capital; Jon Ensch, Commercial Banking Officer, Peoples Bank; Mitch Faber, Partner, Adelstein Sharpe & Serka; Sandy Keathley, Former Owner, K & K Industries; Laura McKinney, NW Gov’t Affairs & Public Relations, AlcoaIntalco Works; Nicole Newton, Semiahmoo Resort/ Golf/Spa; Becky Raney, Former Owner, Print & Copy Factory; Andy Riddell, NW Business Banking Mgr, Wells Fargo; Sarah Rothenbuhler, Owner/CEO, Birch Equipment; Patti Rowlson, Founder/Marketing Director, PR Consulting Inc.; Galen Smith, Operations Manager/ Owner, Coldstream Farms; Billy VanZanten, CEO, Western Refinery Services For editorial comments and suggestions, write editor@businesspulse.com. The magazine is published bimonthly at 2423 E. Bakerview Rd., Bellingham WA 98226. 360.746.0418. The yearly subscription rate is $25 (US). For a digital subscription, visit businesspulse.com. Entire contents copyrighted ©2020 Business Pulse. All rights reserved. POSTMASTER: Send address changes to Business Pulse, 2423 E. Bakerview Rd., Bellingham WA 98226
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IN THIS ISSUE 11
EMPTY BORDER, EMPTY SHOPS
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RELAXATION, MADE HERE IN WHATCOM COUNTY
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22
25
The ongoing border closure is hard on families, businesses and Whatcom County revenue.
Comphy Company supplies top spas and resorts worldwide from their Ferndale space.
CORONAVIRUS, SIX MONTHS LATER. WHAT HAVE WE LEARNED?
Six months of shifting policies, rhetoric and rationale have contributed to creating a skeptical and often deeply divided public.
PUTTING PEOPLE FIRST, EVEN DURING A PANDEMIC T.C. Trading Company has transformed into one of the most diverse warehousing and transportation companies in the region.
SEA CHANGE AT THE LIGHTHOUSE MISSION
Executive Director Hans Erchinger-Davis talks about 2020’s year of adaptation.
38 ‘I JUST KEEP MOVING’
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25
Look for additional content online at businesspulse. com
AMBK President Jeff Kochman has his hands in several Bellingham developments, including his latest waterfront project.
COLUMNS 31 Supreme Court
39 Marketing your
33 The rise of the virus
41 Long-term changes
35 Approval of proposed
44 Tax planning
ruling opens door to school choice comes with enhanced digital risks new development rules at Cherry Point
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BUSINESSPULSE.COM | SEP/OCT 2020
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BP PUBLISHER’S NOTE
The health of our community needs blunt honesty Tony Larson Way back in March, when the pandemic began, I never dreamed my publisher’s note for this issue would still be written in a state of lockdown. Yet here we are. Whatcom County has not advanced to Phase 3 of the governor’s Safe Start plan. As of this writing, it doesn’t look like that will change anytime soon. In July, Gov. Jay Inslee placed a moratorium on any county advancing beyond its current phase, while placing additional restrictions on certain types of events and gatherings. If I am being honest, as an entrepreneur, executive and business owner, the ever-changing goals driving the local and state government response to the pandemic have been confusing and frustrating. We were initially told that economic restrictions needed to occur to “flatten the curve” and keep sick patients from overwhelming our health care system. By all accounts, we achieved that. Based on the data, it does not appear that the county’s health care system was ever close to the collapse we all feared. While the early days of the lockdown were tough on the economy, every business owner and entrepreneur I know was support-
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ive of the public health measures that needed to be taken. At that stage, we did not know if the spread of the disease would lead to tough choices and the need to ration hospital beds, ventilators and other critical care. The available data shows we succeeded. We flattened the curve. However, it appears the goal shifted from helping the health care system man-
cate that a few promising candidates already have advanced to late-stage trials, but again, that is no guarantee. There is no vaccine for cancer. There is no vaccine for AIDS. While those diseases do not spread by mingling at a concert, vaccines for both have been in development for decades. During the early days of the AIDS epidemic, public health officials were confident
As a business community, we must be more vocal. We must have the courage to make our voice heard. age the pandemic to the complete and total eradication of the disease. The Inslee administration and the Whatcom County Health Department have all but said that most economic restrictions and limitations on public gatherings will not ease until there is the development and widespread deployment of a COVID-19 vaccine. The business community wants to open safely and do everything it can to prevent the spread of the virus — and the economy will not return to its former heights until people feel safe leaving their homes. That said, a vaccine is not guaranteed. Media reports indi-
that a vaccine was right around the corner. Advanced therapeutics have made that disease manageable, but to date a vaccine remains an aspiration and not a reality. Public health officials owe the business community transparency and honesty. If Washington and Whatcom County will remain closed until a vaccine arrives, we need to hear that. The time for hazy plans and imprecise language has ended. Businesses that rely on crowds deserve a government that has the courage to be direct. If our state and county leaders know that they intend to keep certain business-
es closed until there is a vaccine, then they need to tell us that. Anything less than full transparency on an issue this important is an abdication of basic democratic principles. To be clear, no one is advocating for a reckless reopening. The business community is simply saying that the health of our community requires blunt honesty and a transparency that so far has been lacking. The growing possibility of a countywide and statewide economic collapse will have an extraordinarily negative effect on the physical health and well-being of Whatcom County. That may be unavoidable, but the businesses, people and families that call our community home need to know what they are in for, and they need time to prepare. As a business community, we must be more vocal. We must have the courage to make our voice heard. We must destroy the myth that our voice comes from a selfish, profit-driven place. The worst day a business owner has is when she closes her shop. The second worst day is when she has to lay off or terminate the employees who’ve helped her grow because of economic circumstances beyond her control. Normally I use this space to preview the issue, but this message is too important. I am using this space to call our business community to action. Take part in advocacy activities and support the organizations — including the Whatcom Business Alliance — working hard to make your voice heard. And use that voice to demand the transparency and precise language our elected officials are working hard to avoid. Enjoy the issue,
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BP NEWSMAKERS
Rick Faber
Eric Peoples
Lawton Coursey
Guy Caldwell
Faber Construction completes hotel, travel center projects Faber Construction, owned by Rick and Debbie Faber, has finished work for a private developer on a five-story, 117-room La Quinta hotel, which opened in Marysville in late July. The 64,000-square-foot project, located at 11430 38th Drive N.E., includes a swimming pool and exercise gym. The interior décor features photos and wall murals that highlight life and scenery in the Marysville area. Faber Construction also wrapped up work in August on the Salish Village Travel Center for Lummi Commercial Co., the business entity of Lummi Nation. The travel center is located at 4839 Rural Ave. in Ferndale, just west of the Interstate 5/
Slater Road interchange.It includes eight double-sided fueling stations serving cars and commercial trucks and 10,600 square feet of building for a convenience store, the Lummi Bay Market at Exit 260. The building features a modern design that emphasizes the use of timber and long wooden beams.“The Salish Village Travel
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Center and La Quinta hotel exemplify how much Faber Construction has evolved since being founded in 1987,” said Rick Faber, company president. “We’re honored to have worked on both of them.” Visit www.faberconstruction.com.
National property management expands to Bellingham Real Property Management Teyata, a Black-owned company offering the benefits of size with the personal connection of local ownership, recently opened in Bellingham. The franchise, which was launched by Eric Peoples and Lawton Coursey, specializes in managing residential and multi-family properties. Real Property Management is the nation’s largest property management company, able to leverage vendors for premium pricing, Peoples and Coursey said. “We can offer both landlords and tenants technologies that ease the stress of owning/renting properties and provide real-time accounting, maintenance and management updates through our interactive portal,”
Brad Caldwell
Matt Castle
Coursey said. “When owners hand over their rental property to us, they can have complete confidence that a firm with a proven history of success is on lead and they can go about their lives without a constant fear of what is taking place with their investment home.” Peoples also owns Real Property Management franchises in Bothell and Bellevue. He previously worked in management positions for Amazon, Anheuser Busch and 3M for more than 20 years. He began investing in rental properties in 2008. Coursey, a Washington State University graduate (magna cum laude), has been working in real estate for five years, most recently for a property management firm in Edmonds. However, Coursey said Bellingham offers more than the greater Seattle area, for several reasons. “I have always been an outdoor enthusiast who finds little joy within the concrete jungle,” he said. “Bellingham’s unlimited access to outdoor recreation like snowboarding, mountain biking and mountaineering were huge driving factors. Also, Bellingham and its residents hold the same values and communal principles that we hold dear. “We want to focus our energy on becoming a respected business within Bellingham and striving to be part of the community and culture of the city.” For more information, visit www.rpmteyata.com.
NEWSMAKERS BP
Peoples Bank gives $10k grant to Opportunity Council Peoples Bank has given a $10,000 grant to the Opportunity Council, a Community Action Agency that advocates for just and equitable communities and aims to help people improve their lives through education, support and direct assistance. Based in Bellingham, the Opportunity Council provides services in Whatcom, Skagit, Island, Snohomish and San Juan counties. The funds provided by Peoples Bank will support early learning and family services programs for more than 400 families in Whatcom County.COVID-19 has impacted this program due to site closures, state funding shortages, and demand for one-on-one (rather than large group) educational services. As a result, the Opportunity Council has experienced soaring expenses with diminished resources. It has also seen a significant increase in demand for its services from families seeking assistance due to new unemployment, unstable housing and food insecurity. “Donating to the Opportunity Council allows us to directly invest in programs that help disrupt the cycle of poverty and create more equitable employment opportunities,” said LaVonne Olsen, senior vice president and human resources director at Peoples Bank. “As a community bank, we feel it is important to support organizations whose purpose is to support disadvantaged individuals and families and address racial disparities in our communities.” Visit www.peoplesbank-wa.com.
Bellingham Bottled Water offers locally owned water delivery Three family members launched Bellingham Bottled Water in July with the aim of providing more reliable and affordable delivery of purified drinking water in Whatcom and Skagit counties. CEO Matt Castle joined forces with his uncle, Guy Caldwell (CFO), and cousin, Brad Caldwell (certified plant operator), giving the management team more than 40 years of experience in the bottled water industry. Bellingham Bottled Water delivers 3- and 5-gallon bottles of purified drinking water to homes and offices, and it also rents water dispensers. “As a locally owned company, our goal is to provide our community with a more affordable and more reliable service than our larger out-of-state competitors can offer,” Guy Caldwell said. “What sets us apart from our competition is our free delivery, lower prices and regular schedules. Most of our competitors charge a large fee for delivery; we only charge per bottle, with free delivery, saving our customers money. We also make our deliveries every two weeks on the same day, a consistency that customers prefer.” Bellingham Bottled Water’s seven-stage purification process includes carbon filtration, 5-micron filtration, 1-micron filtration, reverse osmosis, ozonation ultraviolet light filtration and submicron filtration. The purification process removes chlorine, sediment and contaminants while killing bacteria. Plant operator Brad Caldwell is certified by the International Bottled Water Association. “With many businesses being closed due to COVID-19, more people are working from home or spending more time at home, so residential demand for purified drinking water is increas-
ing,” Guy Caldwell said. For more information, visit www. bellinghambottledwater.com.
Storehouse Mini Storage Complex opens in Bellingham’s Irongate area Most of the 169 units, available for rent or sale, at the new Storehouse Mini Storage Complex in Bellingham are heated and come in a variety of sizes. Customers receive 24/7 access to the complex at 3651 Iron Gate Road, which has digital video surveillance. Owners (pictured above, left to right) Nikki and Ben Fuller, Andy Fouse and Troy Lozano launched Storehouse Mini Storage Complex because demand for quality and secure storage units continues to rise, they said. “We recognized that many local storage complexes have long waiting lists for storage units,” Nikki Fuller said. The COVID-19 pandemic has resulted in the addition of contact-free options for customers. “We’ve invested heavily in technology to allow tenants to shop for their unit on our website, check the prices for each unit, pay for their unit and even get an electronic access code to enter the complex,” Nikki Fuller said. “You can move your belongings into one of our new, climate-controlled units without ever seeing a human. We do, of course, have a staffed office to assist anyone looking to conduct business in person.” For more information, visit www.store-house.us.
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FEATURE BP
PHOTO: iStockphoto.com/wwing
Empty border, empty shops Ongoing border closure hard on families, businesses and Whatcom County revenue Dustin McKissen On March 21, Canadian and American border authorities agreed to limit border crossings to essential travel in an attempt to mitigate the spread of COVID-19. Since then, officials in both nations have repeatedly extended the closure. Several border policy experts in both countries expect the travel restrictions to extend to at least the end of 2020, depending on the development of effective therapeutics, a safe vaccine or a sudden retrenchment of the virus. The impact of the border closure on Whatcom County’s economy and communities has been severe. Point Roberts — a community of roughly 1,300 people isolated from the rest of Whatcom County — requires two border crossings before residents can visit the rest of the county’s grocery stores and other retail outlets for basic supplies. The border closure also isolates Point Roberts from the rest of the United States. (At the time of publication, a short-term, emer-
gency transportation ferry service has been implemented.) It isn’t just Port Roberts. Other Whatcom County communities have felt the sting of the border closure. Most businesses in Blaine depend on Canadian visitors. With the number of daily vehicle crossings falling from roughly 12,000 to just 400, local businesses have struggled to stay open. In Sumas (and Blaine), the loss of 60% to 70% of gasoline sales tax revenue may lead to drastically smaller public budgets. “Canadian shoppers are responsible for roughly 11% of Whatcom County’s sales tax revenue, and we anticipate that retailers lost $54 million to $65 million in sales revenue from Canadian shoppers in Q1 and Q2 2020,” said Laurie Trautman, director of the Border Policy Research Institute at Western Washington University. “Industries like tourism, recreation and housing have also been impacted
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“While we do not have a complete picture of the impact Canadian visitors have on the Whatcom County economy, we do know the closure of the border has a serious effect on our community’s financial health.
by the closure. While we do border presents a risk of the additional spread of the virus. not have a complete picture If a reopening is done premaof the impact Canadian visturely, it would likely result in itors have on the Whatcom a re-closure of the border. As County economy, we do bad as the closing is, opening know the closure of the borAnd the effects of the closure will not and then re-closing the border has a serious effect on our end when restrictions are lifted.” der could create unbearable community’s financial health. Laurie Trautman, director of the Border Policy uncertainty for area businessAnd the effects of the closure Research Institute at Western Washington University es and families—and there will not end when restrictions are some economic benefits are lifted. By that point, many Canadians will have altered their shop- normal flow of cross-border traffic to to the closure, at least on the Canadian ping habits, and their old preference resume. And, as long as the border re- side. For years, Canadian shoppers have for Whatcom County may be slow to mains closed, communities like Point crossed the border to shop for essenreturn.” Roberts and Blaine will continue to The impact of a closed border ex- struggle. Their geography limits any tials, including dairy, produce, meat tends beyond the economy. Many ability to implement an economic de- and gasoline. These staple items are families are essentially divided by the velopment strategy or solution inde- almost always cheaper in Whatcom border. One spouse may work on the pendent of Canadian visitors. There is County than they are on the CanadiAmerican side while another works on not much for those communities to do an side of the border. That is one big the Canadian side. Depending on the other than sit and wait until safe travel reason Bellingham’s Costco is so large work and whether authorities deem it returns or policymakers devise an al- and so busy — or, at least, why it used to be busy. “essential,” some families find them- ternative strategy. (It is also one reason the Bellingham selves indefinitely divided. Spouses As of this writing, Sens. Patty Murhave had to temporarily live apart to ray and Maria Cantwell and Reps. Costco is regionally famous. This aucontinue working. Parents may not be Suzan Delbene and Rick Larsen have thor met a Vancouver businessman at a able to visit their adult children, and taken up Point Roberts’ cause, asking meeting in St. Louis this past February. vice versa. Richard Mills, the acting U.S. ambas- When he asked me where I was from, “Given the indefinite nature of the sador to Canada, for help creating a I said Bellingham. He responded with pandemic, policymakers are working on workable solution that allows residents an enthusiastic, “Oh? We shop at your finding ways for some businesses and of the community to safely travel to Costco!”) Because of the closure, Canadian families to safely conduct cross-border the rest of Whatcom County and the travel,” said Don Goldberg, director of United States. Rep. Delbene has ar- shoppers who previously frequented economic development for the Port of gued that the interpretation of current the aisles of the Bellingham Costco are Bellingham. “However, this is chal- COVID-19 regulations is so strict now forced to buy their food and fuel lenging. The Canadian government that it could prevent residents of Point at Canadian stores. The border closure does not have a piecemeal border poli- Roberts from receiving proper medical is a real-life economic experiment. cy. Whatcom County’s COVID num- care, along with preventing access to What happens when some localized benefits of globalization go away? For bers may be manageable, but as long as basic essentials. the United States remains a hotspot, While a solution may be in the many Canadian shoppers, it means the border will probably remain closed works, as of this writing the residents that the cost of basic goods increased — or at the very least continue to op- of Point Roberts remain isolated from immediately. But for British Columerate under tight restrictions.” the rest of the nation. While officials bia businesses, it means Canadians The one thing experts are sure of is have suggested that Point Roberts resi- are forced to shop locally. Those busithat a potential date for the resump- dents could leave their community and nesses no longer have to compete with tion of normal border traffic remains arrive on the mainland via the Peace cheaper American counterparts. The highly uncertain. Until a safe, effec- Arch border crossing without ever same experiment is occurring along tive vaccine is available, public health exiting their vehicle, border officials the country’s southern border, where experts, regulators and elected offi- appear unmoved by their plight.There American shoppers are forced to purcials will remain hesitant to allow the are no simple answers. Opening the chase health care and other essentials
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from American providers rather than acquiring cheaper Mexican alternatives. The result is a consumer population experiencing rising expenses while local businesses suddenly see an influx of consumers who previously enjoyed lower foreign prices. The border closure will probably receive continued support from some Canadian businesses while Whatcom County companies scramble to develop strategies that rely solely on domestic clientele. Had it been the other way around — if a sudden shift in border policy had positively impacted Whatcom County businesses instead — many of those companies would likely have voiced support for the change. That is just the way free-trade politics shake out: the winners find something to like, and the companies that come out on the short end remain unhappy. While the closure has had a mostly negative impact on the Whatcom County economy, there is some good
news. The Port of Bellingham reports that truck traffic remains close to pre-pandemic levels, meaning that there has not been a significant reduction in trade between the two nations. Director Don Goldberg also reports that a Canadian manufacturer recently committed to purchasing a 50,000 square foot facility in Whatcom County that will add at least 40 to 50 high-paying jobs. Creating a plan that limits significant economic damage in the aftermath of a border closure is next to impossible. The geography of Whatcom County is unavoidable. The county’s economy will always depend on cross-border travel and trade. Point Roberts, Blaine and Sumas will always feel the impact of a Canadian border closure in a way few other communities can understand. The future of cross-border travel and a full reopening remains cloudy. The development of a safe, effective and widely adopted vaccine will almost
surely determine when the border will reopen. In the meantime, businesses and families on both sides of the border will continue to adapt to a new reality. One thing Whatcom County residents can do to mitigate the economic impact of the closure is shop local. Whenever and wherever possible, local consumers can help by spending their money within the county. While shopping local won’t replace all the lost Canadian revenue, it will help. Ordinary citizens and businesses can’t produce a vaccine or change the border policies of two separate nations. But they can, where possible, help by frequenting local shops and retailers. So, until the border reopens, follow the advice of one great American — Mr. Fred Rogers — and be a helper. Shop locally, and hopefully your favorite Whatcom County retailer will come out of the pandemic ready to serve shoppers from both countries. ■
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BUSINESS PROFILE BP
“Wellness is the focus, and environmentally friendly becomes a part of that.” -Mia Richardson, Comphy Company founder PHOTO: Tiffany Brooks
Relaxation, made here in Whatcom County Comphy Company supplies top spas and resorts worldwide Lauren Murphy Turquoise waves ebb and flow in the distance. The sun warms your skin while palms sway in the breeze and your worries are massaged away at a pristine oceanside resort in Bali. Though you may not know it, that sense of relaxation you’re feeling is being powered by a company from Ferndale, Washington. Ferndale-based Comphy Company supplies spas across the world with top-notch sheets, robes, eye pillows and more. Their luxurious linens are made from natural sources, not synthetic ones, and a scientific study has shown that they genuinely improve sleep. They are loved by high-end hotels and resorts everywhere. And they just recently made the Business Pulse Top 100 list — one of only eight women-owned companies to achieve that honor.
The beginnings of an international enterprise Comphy Company founder Mia Richardson dreamed up this business while working as a director at a local Whatcom County spa in 2003. It was then that she realized how difficult it was to find spa sheets that were irresistibly comfortable yet strong. At that time, she said, there weren’t any products that could survive rigorous industrial laundry and stand up to massage oil while remaining soft and luxurious. “I set out to come out with a performance line that could be luxurious and still address those concerns,” Richardson said. As a single mom without financial backing, Richardson did not have an easy road ahead of her. She took a chance and ran with it. At her first trade show, fabric samples in tow, Richardson quickly realized that fellow spa directors
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and industry leaders saw the same need she did. They pined for her product, and to her surprise, she landed her first customer — a Ritz-Carlton resort — that very day. In the first few years, manufacturing was tremendously challenging, Richardson said. She worked tirelessly to create the perfect fabric while keeping materials at the desired price point. “At that time, there were no finan-
industry. “That whole industry is continually trying to find ways to increase wellness, whether it be in the environment, individually or collectively as a group,” she said. “Wellness is the focus, and environmentally friendly becomes a part of that.” Comphy Company’s products are made from natural fibers such as cotton, hemp and bamboo. The fabric is
A sampling of products available from Comphy Company. Photos by Tiffany Brooks.
cial loans available, so I did it all on my credit cards,” she said. “At one point, I moved into a warehouse in Los Angeles while I started the business.” By 2007, she had Comphy Company up and running, with products prepped and manufacturing processes in place. At that point, she wanted to head back to her home of more than 30 years, Whatcom County. She set up shop in a warehouse on Portal Way in Ferndale and never looked back. A commitment to sustainability When setting out to make these products, Richardson kept the planet prioritized. Being eco-friendly is not only important to her as an individual, but it’s also important to the spa
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lighter than most other commercial products, which means they need less time in the dryer. Because the company’s sheets are made for durability, they last two to three times longer than a standard cotton sheet, Richardson said, and — once they do finally wear out — you can recycle them instead of sending them to a landfill. Comphy Company is a member of the Sustainable Furnishings Council, which means the business takes steps to minimize carbon emissions and pollutants and commits to sustainably sourcing materials. Richardson said that they plan to go even further. “Our goal is to have all of our products made from recycled thread by 2021,” she said.
Products for everyone Comphy Company is a luxury linen provider for the spa industry and for many luxury spas worldwide including for such clients as the Ritz-Carlton, Four Seasons and St. Regis. While the company caters primarily to wholesale buyers, individuals still can get their hands on these products. Comphy Company has had a home linen line for the past five years. “After being in spas for a couple of years, clients started to notice the difference when they did have massages and they would find our tag after their treatment and look us up online,” Richardson said. “They started calling us, asking if we made these linens for home.” At the time, they didn’t. But after getting these requests, Richardson decided to make it happen. She found a way to get the sheets manufactured for home use, and then the company branched out into the bed and breakfast market. Richardson said these markets have made Comphy Company even more successful. Supporting Whatcom County Along with its commitment to the environment, supporting local causes is one of Comphy Company’s core values. The company’s team has a program called Comphy Gives Back that facilitates the company’s donation of products to those who need them. Richardson said that the company works largely through local food banks but also supports several organizations. “Women’s shelters and school systems locally call us, and we provide families in need with full bedding,” she said. Comphy has given back to a number of organizations throughout Whatcom County. They supply New Way Ministries of Lynden, an organization that provides transitional housing for
women and children experiencing homelessness, with towels, robes and pillowcases. They give their products to the Whatcom Humane Society to support animal care and to Lydia Place, a Bellingham-based nonprofit that has been serving the county’s homeless population since 1989. If an organization close to their heart needs high-quality bed linens or similar products, Richardson encourages people to reach out. “Because we don’t have a storefront, there’s not really a way for you to know we’re here,” she said. “I want the community to know we are here and we are wanting and willing to support. As a team, we get really excited when we have a chance to do something good for the community.” You can browse products and learn more about Comphy Company at www.comphy.com. ■
35 LUXURY ROOMS
MEETING ROOM
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360/746-8597
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Say, “HELLO” to DaLe… We are pleased to announce Dale Holt is our new Vice President of Member Business Lending. Dale joined North Coast in 2019 in anticipation of this new role. He has enjoyed working with Bob Yost, recently retired VP and Team Leader Member Business Lending and enjoys and looks forward to continuing to work with Cliff Frydenberg, Senior Vice President and Chief Lending Officer. Dale started his career in finance after taking a summer job as a part-time teller. Dale Holt In finding that he liked this work and the environment he moved through various VP Member Business retail banking positions and eventually to the role of Business Relationship Manager, Lending where he honed his skills as a commercial lender. Dale is a graduate of the University of Washington’s, Pacific Coast Banking School and joined North Coast Credit Union to focus on local business owners, in both Whatcom and Skagit County, in developing personalized solutions to meet our member’s needs. “As a business lender creating strong mutually beneficial partnerships has and will always be my focus and although putting a loan together is part of the process, building complete relationships based on a holistic, needs focused approach to individual businesses, their owners and their employees, is really what it is all about.” We appreciate Dale’s ability to think outside the box and say, “Yes!” Give Dale a call if you want to explore your options. (360) 685-4041 or email: dholt@northcoastcu.com.
northcoastcu.com | 800-696-8830 Loans approved based on qualifications.
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BP FEATURE
PHOTO: iStockphoto.com/digicomphoto
Coronavirus, six months later. What have we learned?
Dustin McKissen
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For starters, the disease is not going away any time soon. On Jan. 21, 2020, a Washington man became the first person in the United States to be diagnosed with the novel coronavirus. Nine days later, the World Health Organization declared a global emergency. In February, a man of EvergreenHealth Medical Center in Kirkland became the first person to die from the newly named COVID-19, the disease caused by the novel coronavirus. By March 25, Whatcom County schools and most businesses were closed by Gov. Jay Inslee’s stay-athome order. By mid-April, most of the United States (and much of the world) was operating under similar restrictions. While state officials allowed some businesses to reopen either fully or partially under the Safe Start plan, as of this writing much of the Whatcom County economy remains shuttered, including the border with Canada. According to Don Goldberg, director of economic development for the Port of Bellingham, the daily flow of more than 12,000 neighbors (and shoppers) from the north has trickled to roughly 400. The development of a safe vaccine or effective therapeutics looks promising but is not guaranteed. With so much unknown ahead for Whatcom County, Washington state and the rest of the world, it is important to look back at what we have learned in the months since our lives all changed.
This virus may never go away “There is no getting out of this until we have a vaccine,” Whatcom County Health Department Director Erika Lautenbach said to The Bellingham Herald in July. “There is no getting out of this. This will be in our community until we have a vaccine.” Lautenbach’s sentiments were echoed by national public health experts. “This virus just may become another endemic virus in our communities, and this virus may never go away,” warned Dr. Mike Ryan, the executive director of the WHO Health Emergencies Programme. Spring predictions that the disease would relent in the summer heat did not prove true, as states across the South and West saw their case totals rise dramatically in May and June. The summer spike in cases prompted Whatcom County and state public officials to place a pause on advancing to the third phase of the Safe Start plan. State and county officials will take an aggressive stance Washington state was ground zero in the nation’s coronavirus outbreak. While Washington was not the first state to implement a stay-at-home order, the Inslee administration quickly and forcefully sent a signal that it would implement — and maintain — some of the most aggressive and long-lasting economic restrictions in
the nation. As of this writing, nearly all theaters, art venues, conference centers and other businesses that depend on social gatherings remain closed, never having reopened after the initial order on March 25. Across the nation, states have implemented similar approaches to lockdowns, though with significant differences. For example, in Pennsylvania’s Green Phase (similar to Washington’s Phase 2), fitness centers and theaters may operate at 50% capacity. As of late July, those businesses have not reopened in Whatcom County. The aggressive stance continued in late summer, even after Gov. Inslee put a statewide mask requirement in place. In July, Lautenbach told The Bellingham Herald that the county would not advance to Phase 3 without a lower rate of infection. Gov. Inslee also emphasized that the complete lockdowns of spring 2020 would continue to be a possibility if the number of cases rose. Lockdowns and border closures are economically devastating While state and local officials have expressed concern over the economy, the policies implemented in Washington and Whatcom County in response to COVID-19 have been devastating. Washington, the most trade-dependent state in the nation, has some of the highest unemployment numbers in the country. The economic struggles faced by unemployed Washingtonians were made worse by mistakes in the state Employment Security Department that sent hundreds of millions of dollars to Nigeria-based scam artists. With unemployment claims breaking state and national records on a weekly basis, delays caused by the scam ultimately left many families facing extreme economic hardship. The economic impacts of COVID-
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19 and the related lockdowns are not just restricted to high unemployment. Entire industries, including important Whatcom County staples such as tourism and the arts, have ceased to exist. In July, nearly a third of all households nationwide were unlikely to pay their full rent or mortgage payment. In Whatcom County, an already tough housing market became even more challenging when prices remained high as jobs became increasingly scarce. The federal government provided a series of relief packages, including the Payroll Protection Program, to aid small businesses, though continuing uncertainty and the constant threat of further economic restrictions have
portant gatherings in people’s lives, like weddings and funerals. For the sake of all, even those occasions must be postponed.” “I fully support the right to free speech and peaceful assembly,” Inslee told Washington in a May 30 address in response to mass demonstrations across the state after the death of George Floyd in Minneapolis. “I applaud every Washingtonian standing for what they believe in, but we must do so in a way that allows space for these important and necessary discussions, not in a way that inspires fear. If you choose to protest today, please be safe and peaceful.” State and local officials have grown frustrated with the lack of compliance
Six months of shifting policies, rhetoric and rationale have contributed to creating a skeptical and often deeply divided public. placed many Whatcom County businesses in an untenable position. Incurring further debt with no idea of when — or if — they will be able to fully open (or open at all) is an impossible dynamic. Guidance on best practices to mitigate the disease has been inconsistent. “The data doesn’t show that wearing masks in public will help people during the coronavirus pandemic,” U.S. Surgeon General Dr. Jerome Adams told America in March. “Face coverings are a way that we can reopen and we can stay open. That’s what the science says,” Adams told America in July. “If you want to have parties on the beach, play pickup basketball or have sleepovers, these are no longer allowed,” Inslee told Washington in his March 24 address to the state. “This also applies to some of the most im-
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with the Inslee administration’s mask mandate and the desire for individuals to gather in groups larger than five. However, the messaging on nearly every serious development during the pandemic has at one point been completely contradicted by its opposite. As a result, gaining compliance with necessary public health policies has been harder than it has needed to be. Six months of shifting policies, rhetoric and rationale have contributed to creating a skeptical and often deeply divided public. Life will not look like it did for a long time.The tendency of the media to declare that life has changed forever is well documented. It often seems like a “new normal” arrives every few years. If you are older than 30, you have heard the proclamation of a new normal more times than you probably care to count. Sometimes it really is
a new normal. Travel, our country’s role in the world, and our political relationships with fellow Americans really changed after Sept. 11, 2001. The coronavirus pandemic will have a far greater local and global impact. The intersection of technological advances, new ways of doing business, and a mandate to stay home are creating habits and expectations that people may be reluctant to break, even if a vaccine arrives relatively soon. Business travel is likely permanently altered. A list of all the ways we will be changed because of this pandemic would be too long to include. But the least mentioned — and perhaps most important — effect of COVID-19 may be the way it changes the way we view one another. In an age in which human contact already was being minimized, the long-term sociological impact of viewing everyone you see as a potentially lethal disease vector will be profound. The long-term effect on Whatcom County also has been profound. As of this writing, 37 people in the county have died because of the disease. Thousands have lost their livelihoods. Unfortunately, both numbers will increase by the time this article is printed. If the next six months do not see the development of a safe vaccine or an effective therapeutic, the changes to our community and the nation will be even more impactful. Regardless of how you feel about specific developments within the last half year, one thing we can all agree on is that we do not want to see six more months of despair and uncertainty. For a moment, let’s set aside our disagreements, root for each other, and root for everyone trying to treat the sick, solve our economic problems and invent a cure. ■
If you and your business do not participate in the shaping of public policy, you will be governed by those who do.
The WBA Policy Center was created to be the eyes, ears, and voice for Whatcom County businesses. There are thousands of rules and regulations being created at the federal, state, and local levels that may harm local business. The WBA Policy Center provides both influence and credibility in the community by engaging in fact-based research, education, communication, and advocacy for its members on issues important to business. It also works proactively to advance policy issues that support business success, while advocating against those harmful to local business. We hope you will consider supporting the WBA Policy Center — there is strength in numbers and your support will have an impact.
Be Informed...Get Engaged...Make a Difference! How You Can Help • Contact us about issues that may be impacting your business or industry at wbapolicycenter.org/about-contact/. • Become part of the solution by making your contribution to the WBA Policy Center’s Step Up Fund. Your support makes it possible for WBA to proactively engage on issues on your behalf before they negatively impact your business.
START TODAY! Support the WBA Policy Center with a contribution at www.wbapolicycenter.org.
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BP BUSINESS PROFILE
“My goal is not to be the biggest company out there; my goal is to provide the best service to customers and a wonderful place to work.” Tom Hayes, president T.C. Trading Company
PHOTO: Tiffany Brooks
Putting people first, even during a pandemic Customer service is the essence of this essential business Tammi Loucks In 1989, John Hayes founded Hayes Import Inspection Service, a United States Department of Agriculture import meat and poultry inspection service station located near the border with Canada. Little did he know that one day his son, Tom Hayes, would transform his small, focused business into T.C. Trading Company, one of the most diverse warehousing and transportation companies in the region. John Hayes had been a West Coast USDA import supervisor; he retired from the USDA in 1988. Foreseeing opportunity stemming from the creation of the North American Free Trade Agreement, he established the first
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independent, USDA-licensed meat and poultry import inspection business in Blaine. He recruited his son Tom, who was about to graduate from Eastern Washington University, to join his newly established company. “He paid for my school, so I came to help, but I didn’t know I’d work for three years for free,” joked Tom Hayes. For eight years, John Hayes focused on USDA import meat and poultry inspection. He eventually expanded, adding an inspection office in Seattle. During that time, Tom pondered opportunities to offer value-added services to the company’s customers.
“Dad was focused on meat inspection,” Tom Hayes said. “It was what he knew. I looked at the company as if I was running the business. In the early ’90s, a new cruise ship service between Vancouver and Alaska created a need for cold storage and additional supply chain services at the border. I reached out to our customers and prospective cruise ship vendors and asked how we could simplify their business across the border.” In 1996, USDA regulations changed for the third time since the company’s inception, putting John Hayes in a vulnerable financial position. Tom Hayes purchased the Blaine office of Hayes Import Inspection Service from his father and changed the company’s moniker to T.C. Trading Company. Meeting customer needs key to business growth With its strategic location near the border with Canada, T.C. Trading Company initially helped U.S. companies export food and beverage products into Canada and Canadian businesses ship food and beverage products into the United States. In 1997, the company established partnerships with cruise ship vendors servicing the Alaska cruise ship industry, which opened many doors. As import and export
regulations changed over the years, T.C. Trading Company expanded its offerings to create a one-stop shop for all border-related cold storage and logistics. Today, T.C. Trading Company provides global supply chain solutions for domestic and international businesses, with the latter accounting for nearly 40% of the company’s revenues. “We focus on each customer and customize their supply chain needs,” said Tom Hayes, who serves as the company’s president. “We listen and provide solutions, making it easy for our customer, and try to give added value.” No matter the client’s location, a partnership with T.C. Trading Company extends beyond storage and logistics. The team is committed to providing a high level of customer service. “We aren’t going to just store client product,” said Phillip Hayes, T.C. Trading Company’s general manager. “Our perspective is to be an extension of the client. We are willing to be on the phone at 2, 3 or 4 a.m., so when they walk in their door at the start of business, they know the problem’s been handled.” Doing whatever it takes to help customers seamlessly distribute their products along the supply chain is key
to T.C. Trading Company’s continued success. “Our customers’ reputation and the trust factor are important to us,” Tom Hayes said. “We know their reputation is on the line, and we do what we can to protect it. It opens doors, so we can help our customers’ business run more smoothly, more effectively.” Providing services to customers during the pandemic Throughout its 24 years in business, T.C. Trading Company has endured its share of challenges. None has been as trying as the coronavirus pandemic, which put a stranglehold on the supply chain. Because the company is a food distributor, it was essential that its operations weren’t interrupted. The management team had the foresight to implement company-wide changes for the safety of employees and customers even before government mandates took effect. “We staggered our warehouse crew and implemented mandatory wearing of masks,” Tom Hayes explained. “All (on-site) employees go through a health screening and temperature check every day. We ask if they don’t feel good for any reason to stay home.” The company also put a halt on all business travel and requested that
T.C. Trading Company headquarters in Blaine, Washington.
“Our perspective is to be employees engaged in personal travel quarantine for three days prior to returning to work. “We also only allow one delivery driver to check into reception at a time,” Phillip Hayes added. “Each staff member is assigned an area of the building to clean and sanitize, and we clean six times a day, since we handle food. We’re an essential business, and it’s important we remain open.” The Hayeses believe it’s too early to tell whether COVID-19 will be the impetus for any permanent changes within their industry. However, Phillip Hayes noted that because many foreign manufacturing plants closed due to the worldwide pandemic, the supply chain backed up. “It was a domino effect,” he said. “I think, going forward, businesses will need to diversify how and where they make their products, who will distrib-
an extension of the client. We are willing to be on the phone at 2, 3 or 4 a.m., so when they walk in their door at the start of business, they know the problem’s been handled.” Phillip Hayes, general manager T.C. Trading Company
ute it, and that more production will be brought back to the U.S.” In addition to forcing the company to implement safety precautions to prevent a temporary closure, COVID19 had a significant effect on the company’s peak season. During this time of the year, the shelving in the freezer and cold storage facilities are normally filled to the ceiling, with the ground space stacked neck high and the dock areas packed. Operations would run
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360.715.9000
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24/7 to meet demand. However, business loss due to a cancelled cruise ship season left the company facing new challenges. “Our peak season is March to October,” noted Sonia Hayes, T.C. Trading Company co-owner and vice president. “In February, I’d start the interview and training process to bring on 50 to 60 seasonal employees. We realized toward the end of February that things were changing, and the cruises wouldn’t proceed as planned. We put a halt on hiring. We’ve also had to lay off nine additional employees.” While the coronavirus pandemic created new challenges within the supply chain industry, it also created new opportunities for T.C. Trading Company, as businesses sought outsourcing partners to meet the surging demands of e-commerce fulfillment and the shipping of essential supplies to the front lines. A logistics partner that companies rely on In the business world, sometimes it is common to focus on profit over customer service. But Sonia recalled Tom once telling her, “My goal is not to be the biggest company out there; my goal is to provide the best service to customers and a wonderful place to work.” Through Tom Hayes’ guidance, as the company has grown and endured business challenges, its dedication to customer service has not waned. The company’s goal is for customers to be able to focus on what they do best, knowing that T.C. Trading Company will try its hardest to ensure that their product arrives as expected at its final destination. Learn more about the company at www.tctradingcompany.com. ■
PERSONALLY SPEAKING BP
Sea change at the Lighthouse
2020 has been a year of adaptation for Lighthouse Mission Ministries Mike McKenzie Lighthouse Mission Ministries sits in a white-hot spotlight. That makes it a perfect time in a perfect storm of community and government dialogue to visit Hans Erchinger-Davis, Lighthouse’s executive director since 2016, who manages a staff of 45 and a budget of $2.8 million. Erchinger-Davis was first hired in 2006 after many bounce-about experiences. For example, he helped smuggle Bibles into Romania as a youngster, obtained an international business degree at Western Washington University and hawked business wares globally, survived a 19-fatality train wreck in Australia, graduated from seminary in British Columbia, became a husband and father, made documentary films and drove a Lummi Nation school bus. As asides, he paints in acrylics and roasts and brews his own coffee — and dreams big on behalf of the homeless. Our conversation in mid-July (socially distanced by phone) began with: BP: Some year, 2020. Two arson fires, COVID-19, two site moves, starting a capital campaign. Hans: Feels like we’re going 100 miles an hour. We’ve had to be pretty nimble, pivoting in many places. BP: How’d you handle the pandemic? Hans: With lots of hand-washing and masks. We also added 20 to our staff to support Whatcom Unified Command’s isolation and quarantine shelter at the Motel 6 and our high school shelter. BP: How many persons are you serving? Hans: Over a year’s time, we engaged with about 2,800 unique individuals. We typically accommodate 260 women, men and children over a 24-hour period, plus an additional 100 for our services offered just during the day.
PHOTO: Tiffany Brooks
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BP: What daytime services? Hans: Outreach with two Street Connect vans, a portable shower trailer, handout of basic hygiene items, blankets, etc. And the Joy Riders — volunteers and staff riding electric scooters downtown to distribute coffee or water and invite people to use our services. It’s a radical type of hospitality — and a conversation starter. Many homeless persons have issues with institutions, so we build trust before deeper levels of engagement ... services at Base Camp or in our addiction recovery programs designed for them to put their lives back together. BP: Amplify on the COVID-19 experience. Hans: I could talk all day long about it. Not just COVID-19, but add in the cultural climate — race relations, policing, etc. — from the perspective of homelessness, and it’s been quite a ride. The pandemic has brought more attention to the most vulnerable — from people who have a home to quarantine to and from those who lost jobs and savings investments. They connect more on a heart level with our folks who have lost everything. It’s good to have sympathetic understanding of the needs we’re dealing with. BP: How’s it affected your constituency? Hans: Our guests become more serious about coping with life recovery. They’re reliant on a lot of services that closed — food banks, coffee shops where they plug in their phones, the YMCA for showers, and the library, which is a favorite place to go. The Lighthouse Mission became the only operation available for three meals a day, a place to stay and staff for support. And before COVID-19,
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with an overnight capacity of 160, we already were turning away a dozen people a night. Then all the directives from the governor came down. Stay 6 feet apart? No way!
quickly. If we had gone back to our old site, we would’ve had just 50 people separated by 6 feet (and) would’ve put 110 very vulnerable folks back on the street.
BP: How did you mitigate and navigate? Hans: We had an emergency meeting with Whatcom Unified Command on a Sunday (March 15), and by Friday we had moved to Bellingham High School with open space and increased capacity — up to 200. It blows my mind, looking back. A huge undertaking. Thank God our system was in place. It took partnership with the county and city to make it happen. And, working very closely with the (Whatcom County) Health Department, I’m proud to say we’ve had no cases.
BP: What were possibilities? Hans: We looked at a membrane-covered structure on a couple of Port of Bellingham properties. We looked at portables. But they all had significant costs and timing issues. Then, somebody floated the idea of the Public Market building on Cornwall Avenue.
BP: What are the complexities of portability? Hans: A minutia of details. Trying to site a homeless shelter downtown is like trying to site an airport downtown. An emergency didn’t leave room for public process. A few folks got upset. Totally false rumors flew after a radio news piece alleging $1 million in damages at the high school. It was a real win for the community for us to be there, protecting the vulnerable both inside and outside of our center, as well as keeping the hospital emergency room empty. But it was temporary. BP: So, here we go again? Hans: We’re never dealing with events just coming in waves; it’s more like a long-standing brush fire. The school district needed their building back. We needed a solution
BP: With what arrangement? Hans: A wide-open indoor space with 25,000 square feet and a huge parking lot had great appeal. Less cost, and the location was super ideal. The city leased the property, and we subleased it from them. Operations continued as they had in Old Town. BP: How’d the negotiations go? Hans: The owner — seeing how well we handled the high school property — liked the idea of using it to benefit the community so much that he halved his price to do it. BP: Any pushback? Hans: Certainly, the concept caused some uproar downtown from a select few. I understand their concerns. Especially with the prevailing image of driving along Holly and seeing folks hanging out on the sidewalk. The difference — the huge difference — is the outdoor area. BP: How so? Hans: At our old space, the door opened onto the sidewalk and (had) only a very small patio. It’s hard for that many guests to hang out in a 40-foot-by-15-foot space. And, the
“The pandemic has brought more attention to the most vulnerable — from people who have a home to quarantine to and from those who lost jobs and savings investments.” - Hans Erchinger-Davis sidewalk is public property, (so) we had no control over access. BP: What keeps the same from happening? Hans: A high fence around twothirds of the parking lot — 25,000 feet of privacy fencing. We have one controlled entrance into the building, and a screened entry is the only access to the outdoor space. A person can leave through a turnstile gate but can’t come back in except through the front desk again. Having a secure, closed, privacy-fenced area is a major boon for downtown as well as for our guests, who no longer feel like they’re being gawked at. BP: Specifically, how’s the space used? Hans: Multiple outdoor activities: Ping-pong. Beanbag toss. A bicycle fix-it area, one bike at a time, with storage to avoid theft. And casual seating with space to spread out. It’s an attractive place to be. That eliminates gatherings of anybody not using our services and that the businesses don’t want around. A fair concern, because you don’t want them causing problems. BP: How were you proactive on concerns? Hans: Several ways. First, stakeholders in the neighborhood were invited to form an advisory group. We’ve pre-
PHOTO: Tiffany Brooks
sented webinars for downtown businesses on how to de-escalate and offer compassionate interactions, while at the same time keeping customers safe. We’re working hand-in-hand with law enforcement. Taking measures to discourage lived-in motor homes and cars nearby. Providing clean-up daily through a Good Neighbor program, and more. Also, we hired a person to serve as our liaison with the downtown community. BP: Did you get positive feedback and buy-in? Hans: We anticipated bumps along the way. But everyone involved is committed to making this a real win for downtown, for people in homelessness, and for the entire broader community. It’ll be something to look back on after COVID-19 and say, “Look what we did... Bellingham cared for its people who have lost everything. Incredible!” BP: Toughest selling point? Hans: There’s a lot of prejudice based on appearances. Our guests get eyed a lot, and they feel really bad in their heart. With this facility, we’ve basically hung up a huge welcome sign: “We want you here, we think you’re great.
You have potential, and we’re going to help you reach it with competency and friendship.” BP: What’s the payoff? Hans: This layout plan and approach draws even more homeless folks out of multiple downtown areas — relief for those sheltering in Maritime Heritage Park, on Railroad Avenue, the waterfront, north of town and elsewhere. It’s a huge asset to the community overall. And it’s temporary, three to four years. If we don’t reach our milestones, we move out. BP: What milestones? Hans: The 2 1/2 years of a capital campaign, then 1 1/2 years to build. We’ll raze one of our existing buildings (on Holly) and put up a lot more square footage, add more programs, and effectively triple the impact of services. It’ll have multiple floors of different shelters offering specialized interventions based on unique needs, with the operational efficiencies of one large facility. BP: Any specifics on that plan yet? Hans: They’re still being laid out. The aim is to further fill out our life transformation continuum. The Drop-In
(Continued on page 48)
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BP BUSINESS PROFILE
PHOTO: iStockphoto.com/SEASTOCK
‘I just keep moving’ Jeff Kochman has his hands in several Bellingham development projects Mary Louise Van Dyke Jeff Kochman, president of AMBK LLC, combines vision, confidence, determination and a willingness to tread the necessary steps as he develops real estate from empty spaces to finished completion. He adds to that mix a whole lot of tough work. In June, construction crews began moving dirt on AMBK’s latest project, a new waterfront development near LFS Marine & Outdoor at Squalicum Harbor in Bellingham. The project consists of two buildings designed for use as office, warehouse and industrial space. Kochman says although there are no confirmed tenants yet, he expects to lease space to companies involved in manufacturing, assembly, tech, production and marine-related enterprises. AMBK is a real estate development and investment company focused on medical office, mixed use (residential and commercial), industrial and land development. The company was launched in April 2015 and Kochman works with three part-time staff. He said he typically
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hires third parties for most of the work he does to keep costs trimmed. He has access to an office, as needed, and primarily works out of his home. “As things grow, I may formally set up an office,” he said. Kochman is accustomed to the efforts necessary to develop properties into finished facilities. Until 2016, he served as president and CEO of Barkley Company, which owns Barkley Village, an urban property familiar to many in Whatcom County for its mix of restaurants, retail, entertainment and residential housing. When Kochman left Barkley, he shifted his focus to AMBK and finishing an industrial build in the Irongate area of Bellingham. “I’m moving forward,” he said. “Moving at a smaller scale than I used to with Barkley, but I just keep moving.” The new waterfront development at Roeder and Hilton avenues would have moved forward earlier, were it not for a few complications. “This project took four years to get
Images courtesy of AMBK LLC. From architect rendering to project progression for the new waterfront development at Squalicum Harbor.
permitted,” he said. Construction on the waterfront involves meeting multi-tiered regulations for development, including in the areas of the environment, landscaping, building appearance and zoning. Meanwhile, Kochman was overseeing an AMBK expansion to the Barkley Medical Building at 2075 Barkley Blvd. and attempting, with developer
Jeff McClure of RMC Architects, to purchase the old JCPenney building in downtown Bellingham for a mix of residential, retail and office space. Kochman had hoped to break ground on the waterfront property in fall 2019, but to trim costs he ended up shelving the project temporarily and revising the design. Enter 2020 and the COVID-19 pandemic. Washington Gov. Jay Inslee’s “Stay Home, Stay Safe” order in March halted construction projects throughout the state. In late April, the sounds of construction activity recommenced for projects already being built. But because the waterfront property had not been permitted at that time, Kochman said, it was not among them. Steel arrived for the first 12,500 square foot building in early August. Kochman anticipates seeing progress begin soon on the second facility, which will contain about 6,200 square feet of usable space. Both facilities are scheduled for completion in the first half of 2021. Kochman said he is still interested in developing the former JCPenney site on Cornwall Avenue. Momentum on that project took a nosedive after he and McClure experienced a series of setbacks. The developers offered $712,000 to Bruce Tolchin of Whatcom Center LLC to buy the building. However, other Tolchin family members challenged Bruce Tolchin’s right to sell the building, while the City of Bellingham committed to working with Kochman and McClure on the project. Bruce Tolchin passed away. Today the building continues to sit gathering dust while the issue of who owns it and who can legally sell the building for development remains unresolved. “Jeff McClure and I are still interested,” Kochman said.
Kochman graduated from Washington State University with a degree in business administration. He is a past board member of Junior Achievement of Washington and the current treasurer and secretary for the Northwest Innovation Resource Center. He received the Business Person of the Year award from Whatcom Business Alliance in 2011 and a Lead-
ership Achievement Award from Junior Achievement of Washington in 2007. Life is quieter these days, Kochman says, but he stays involved through conversations with businesses considering new construction projects or renovations of existing properties. “I like this type of work, the people I have relationships with, and the numerous possibilities,” he said. ■
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Bridging the Gap E D U C AT I O N | C O M M E R C E | C A R E E R T R A I N I N G | E M E R G E N T W O R K F O R C E The key to a healthy and robust economy is the availability of a skilled workforce. WBA’s Youth Engagement Initiative (YEI) helps prepare the emergent workforce — K-12 and college-age youth — and connect them with local employers. To learn more about how you can become involved go to www.yeswhatcom.com. YEI is a 501c3 organization.
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tiffany@tiffanybrooks.com 360.734.3605 tiffanybrooks.com
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EDUCATION OP-ED BP
PHOTO: iStockphoto.com/SEASTOCK
Supreme Court ruling opens door to school choice
In Montana case, court says families can use tax credit scholarships to send their children to private religious schools Liv Finne Recently, the U.S. Supreme Court ruled in Espinoza v. Montana Department of Revenue that families can use tax credit scholarships to send their children to private religious schools. This decision reaffirms the constitutionality of school choice programs and raises the hopes of families who want better schools for
their children. Here’s a brief description of the case. In 2015, the Montana legislature passed a scholarship program funded by tax credits to help families pay private school tuition to educate their children. By administrative rule, Montana blocked families from using these $500 scholarships at private religious schools. Three mothers sued the state of Montana. In December 2018, the Montana Supreme Court ruled against them, relying on the “no-aid”
clause in the state’s constitution that prohibited aid to religious schools. The mothers appealed to the U.S. Supreme Court and won. The U.S. Supreme Court ruled that by preventing these families from using tax credit scholarships at private religious schools, the state of Montana violated their First Amendment right to the free exercise of religion. The ruling invalidates Montana’s “no-aid” clause and the Blaine Amendments (which prohibit state aid to religious schools)
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of 37 states, including the Blaine A new day has arrived. Espinoza v Amendment to Washington state’s Montana Department of Revenue has constitution. sparked excitement among parents Twenty-eight states, the District and education rights groups across of Columbia and Puerto Rico offer the country. Now that opponents have parents school vouchers, tax credit lost the historically bigoted Blaine scholarships and education savings Amendment as a talking point against accounts to help pay tuition at private education choice, the idea that parents schools. After all, letting parents guide who want to can use public funds to the education of their children is hard- send their children to a better school ly a radical idea. Parents of college-age has taken a huge leap forward.This kids do it every day. past spring, during the 2020 session of In addition, many advanced the legislature, Republican State Sencountries use pubate Minority LeadThe idea that parents lic funds to send er Mark Schoesler who want to can use children to private introduced Senate schools. Examples public funds to send their Bill 6520, which include Austra- children to a better school would provide lia (where 25% of $15,000 scholarhas taken a huge children attend ships to help the leap forward. private schools families of special using public funds), Belgium (58%), needs children and children in foster Denmark (11%), France (16.8%), care pay the cost of private school tuiSouth Korea (21%), the Netherlands tion. Republican State Representative (76%), Spain (24%), and the United Vicki Kraft introduced House Bill Kingdom (30%). 2933, which would provide $13,000 Even in Washington state, school Education Choice Scholarships to administrators often direct public families seeking to enroll their chilmoney to children attending private dren in a private school. religious schools. For example, school Now that the U.S. Supreme Court districts paid $8.1 million in 2016 to has struck down Washington’s Blaine Catholic, Christian and Jewish institu- Amendment, the time has arrived to tions to provide special education, day implement school choice in our state. ■ care, preschool, foster care and other Liv Finne is the director of the Center for education services (see WAC 392Education at Washington Policy Center. She 172A-04040) for children in our state. is the author of Washington Policy Center’s Some Washington lawmakers have “Education Reform Plan: Eight Practical recently supported new proposals to Ways to Improve Public Schools, Learning offer families a school voucher to pay Online: An Assessment of Online Public Education Programs” and many more in-depth the cost of tuition at a private school, studies. Liv holds a law degree from Boston similar to federal Pell Grants, which University School of Law and a bachelor of help families defray the cost of college. arts degree from Wellesley College. She retired Unfortunately, these efforts have been from civil litigation practice to raise two children and work as business partner for a small blocked by opponents citing Wash- business she owns with her husband. ington’s Blaine Amendment.
INSURANCE BP
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The rise of the virus COVID-19 has brought with it enhanced digital risks Joshua C. Wright COVID-19 has changed our daily lives in ways that would have been impossible to envision. The economic restrictions put in place to mitigate transmission also have affected businesses, with major decreases in revenue for most Whatcom County companies. While some businesses have reopened (or were never closed), many remain closed or face serious restrictions on their operations. Reduced cash flow isn’t the only way businesses are vulnerable in the pandemic. The last thing Whatcom County’s businesses need is an additional threat to their operations. With companies more fragile than ever, it is important to make sure that risk transfer measures are in place for the increased risks of a cyberattack. When the governor’s stay-at-home order went into effect, businesses that had not previously had a remote workforce scrambled to put the pieces together to make sure employees could work from home. Unfortunately, cybersecurity measures that may have been in place in the office are almost never in place for a remote workforce. With so many people now working from home, the risks are funda-
mentally higher — responding to messages from employers, schools and other trusted sources with new and greater frequency. Remote workers are also more likely to neglect antivirus updates, open malicious emails, and expose confidential data to third-parties via unsecured communications. The risk landscape has changed. The pandemic has seen an increase in the amount of cyberattacks. Partly, this increase is because of a larger-than-average number of spam emails with links used to infect our computers — and potentially our entire business networks — with malware. Ransomware attacks, in which criminals gain access to a company’s data and then hold it hostage, are on the rise. So are social engineering attacks that can trick employees into sending funds electronically to criminals outside of the United States. One of the more infamous cyberattacks during the pandemic cost the state of Washington hundreds of millions of dollars in unemployment funds. Before the pandemic, three of the top five cyber insurance markets were averaging about $1 million per week in ransomware payments for cyber insurance policyholders. We are likely to see a sharp increase in these claims due to the increased attacks and decreased cybersecurity controls with
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a remote workforce. Like any insurance product, increased payouts could lead to higher premiums for everyone. The good news is that information security experts are seeing an increase in the number of cyber insurance policies being purchased. Before With companies more fragile than ever, it is important to make sure that risk transfer measures are in place for the increased
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risks of a cyberattack. the pandemic, roughly 5% of small businesses were buying a standalone cyber insurance policy. It is expected that more companies will purchase policies, as businesses are not in the position to cover these types of losses. Studies show that roughly 60% of small businesses close their doors within six months of falling victim to a cyberattack. These numbers are likely to increase, as small businesses lacking cyber insurance policies have fewer resources and capital to mitigate and recover from a cyberattack. COVID-19 has created a slew of unexpected challenges for businesses. One of those challenges is the need to protect the exponentially growing amount of sensitive data and private information shared via Zoom, Microsoft Teams and other platforms that have replaced the in-person interactions that previously drove business. For most companies, it is a matter of when, not if. Eventually, cybercriminals will target your business. Be prepared. â– Joshua C. Wright, CIC, AFIS, TRIP, is the senior VP of sales for Bell-Anderson Insurance in Ferndale, Washington.
ADVOCACY BP
Approval of proposed new development rules at Cherry Point WBA Staff The Whatcom County Council’s push to adopt a sweeping set of new regulations to restrict growth and development at Cherry Point is expected to be at the top of Council’s agenda in September. These long-awaited changes began with a modification to the Comprehensive Plan four years ago, and now represent the most extensive local land use changes in the heavy industrial area at Cherry Point in forty years. These changes will impact permitting and development at Whatcom’s two refineries which employ thousands of people in Whatcom County. The council will take up the Planning Commission’s recommendations on the Cherry Point amendments, which were adopted following a public hearing at the Commission on August 13. The recommendations include a
joint proposal by industry and environmental advocates that simplified the code in specific ways that avoided problems for industry and addressed key concerns of environmental advocates, while achieving the Council’s objectives of requiring conditional use permits for fossil fuel transshipment facilities and refinery expansions. The recommendations would prevent converting renewable facilities into fossil fuel facilities, prohibit future piers at Cherry Point, restrict the development of coal-fired power plants, and require certain mitigations for existing refineries on future projects. The timing of the Cherry Point amendments coincides with the Council’s efforts to address the COVID-19 related budget shortfall, and while the local economy is still reeling from the curtailment of aluminum production
and layoffs at Alcoa Intalco works. It’s important that all Whatcom residents are aware of how these changes will impact the lands set aside for industrial development as these jobs are the cornerstone of the local economy and will be an important component of our economic recovery. According to a 2019 Cherry Point Economic Impact study conducted by Western Washington University’s Center for Economic and Business Research, jobs within the Cherry Point zone represent 3.75% of the County’s employment, and support (directly or indirectly) 11.2% of the overall jobs in the County and 17% of all wages. The businesses in Cherry Point paid more than $370 million in state and local taxes and $15 million in property taxes of the overall property taxes in the County, this includes 11% of property
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taxes for County Road Fund, 15% of the Ferndale Schools, and 21% of the Blaine Schools. The large tax contributions of these industries effectively reduce taxes for everyone else. Progress has been made but it’s important that the Council get this right and preserve the ability of Cherry Point businesses to remain competitive so that they can continue to attract investment, produce energy needed by our region, and provide thousands of jobs to Whatcom County residents. The Council will begin their consideration of the Cherry Point amendments at a work session in September. Your voice is critical. Go to whatcomcoalition.com/get-involved to learn about updates regarding opportunities to attend a public hearing and provide comment to the Council on this important issue in our community. ■
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GUEST COLUMN BP
PHOTO: iStockphoto.com/FG Trade
Face masks save lives and jobs Kris Johnson Wearing a mask saves lives and saves jobs. And all across the state, Washington employers are leading by example in the fight to stop the spread of the coronavirus. From Seattle to our small towns, workers are masking up before starting their shifts on manufacturing floors, in restaurant kitchens, at construction sites and in hardware stores. This simple tool is even more powerful when
customers do their part, too, and put on a mask before coming inside. Culturally, we’re adjusting and building new habits. Face masks, gloves and hand sanitizer have joined wallets, phones and car keys among the necessary items to have before leaving our homes. Some masks are plain, and some have the logos of our favorite sports teams or other patterns. Either way, they’ve become part of our daily lives. Initially, face masks were encouraged primarily as a way to protect
those around us. But now researchers from around the world are looking into the possibility that they also provide protection for the person wearing the mask. Recent studies indicate that people are 65% less likely to be infected if they wear a mask.And Dr. Robert Redfield, director of the Centers for Disease Control and Prevention, said he believes the pandemic could be brought under control in four to eight weeks if “we could get everybody to wear a mask right now.” Our state needs this team effort to
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keep people from getting sick and to help our economy stay open and avoid more closures. Masks help companies open up and stay open. The economy has a great degree of fragility, and we need to do everything possible to avoid going backward. Wearing a mask can not only help keep you and neighbors healthy but also help you and your neighbor collect a paycheck instead of an unemployment check. Washington’s economy shut down in March. Lives were saved as we slowed the spread of the coronavirus. But our economy took a major hit when customers stayed home and demand dropped. Many businesses are still recovering, and some are already gone forever from this once-in-a-lifetime event. Since then, our state has reopened slowly and carefully. Employers have
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made major investments in personal protective equipment, safety training, and rearranging store layouts and factory floors. This work is all the more remarkable considering that hundreds of Washington manufacturers have shifted their operations to make personal protective equipment instead of their regular products, to both save jobs and help our state reopen safely. Now, COVID-19 cases are trending upward in Washington state and around the country. But we’ve come too far to turn back. This point is being driven home by the Stay Safe Washington Coalition, which has launched a new public awareness campaign to highlight the benefits of using a mask. The message is simple: If we all wear a mask in public places, we can stay safe and stay open.This broad coalition represents contractors, ethnic
businesses, bankers, grocers, real estate agents, retail establishments, hotels and more. Here at the Association of Washington Business, we’re proud to be part of this team effort to protect public health and help keep our struggling economy open. And we’re asking all Washingtonians to continue to do their part. Frequent hand-washing, physical distancing and wearing face masks are some of the best tools we’ve got right now as we fight this virus and attempt to rebuild our battered economy. It might not seem like much, but a simple piece of fabric can help save a job, protect a life and — hopefully soon — defeat this virus. ■ Kris Johnson is president of the Association of Washington Business, the state’s chamber of commerce and manufacturers association.
MARKETING BP
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The worst thing you can do right now is nothing. Chances are likely that your customers are wondering whether you’re open, are taking any extra precautions or are operating at full capacity. PHOTO: iStockphoto.com/CASEZY
Marketing your business in times of crisis Now might be the perfect time to try new things Brooke McClary Whether we’re ready for it or not, the world has permanently changed. The COVID-19 pandemic has changed so much for businesses, especially in regard to marketing. As business owners and marketers, it’s on us to adapt to changing times. We have to change the way we think and market. What worked yesterday may not work today. It’s time to be brave, try new marketing tactics and make sure we’re adapting our creativity. Along with your standard marketing practices — a mobile-friendly website, an updated social media presence
and a method to keep your customers informed of changes — here are some additional marketing tactics to implement or take advantage of immediately. Email marketing According to email marketing firm Campaign Monitor, email is more valuable than ever, returning $42 for every dollar spent. That’s $4 more than in 2018. We’re not talking about obnoxious spam here, of course. We’re talking about making sure your business remains in the brains of your target audience through announcements of promotions, new products or services, or through a simple note that says,
“We’re still here, and we miss you.” Email marketing can be one of the most effective tools you can use to drive sales or feet through the door. Tools such as MailChimp, Constant Contact and Campaign Monitor make managing email lists and sending campaigns extraordinarily easy. Bonus benefit: email marketing is typically a low-cost endeavor. It’s important to note that email marketing has some relatively strict guidelines, so make sure you follow the rules from the Federal Trade Commission, specifically the CAN-SPAM Act. Google My Business According to research from market-
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Be flexible, be open to creative adaptability, be brave enough to try new marketing tactics...
ing firm BrightLocal, the average business sees almost 60 actions each month on its Google My Business listing. It might be the silliest name for a platform, but it is by far one of the most important tools for businesses to utilize. Google My Business listings are special boxes that show alongside Google search results and contain your company’s reviews, address, phone number, hours, description, photos and such timely information as whether you offer curbside pickup or delivery. If you haven’t claimed your Google My Business listing, drop everything and do so immediately. There are plenty of how-to videos online. The only requirement is that you have a physical address. When you’ve gone through the process of claiming your listing (which can take up to several weeks, in some
cases), make sure to add as many details as you can to the “info” fields. Also, be sure to add photos of your business, even if you’re service oriented. Pay-per-click ads Pay-per-click advertising enables companies to show ads to internet searchers, social media users or people browsing partner websites. Pay-perclick ads can be a great way to attract the attention of searchers who may not be familiar with your business. Using online tutorials, setting up ads is exponentially easier than most people think. Some pay-per-click platforms are Google Ads, Bing Ads and Facebook. Communication The worst thing you can do right now is nothing. Chances are likely that your customers are wondering wheth-
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er you’re open, are taking any extra precautions or are operating at full capacity. Communication right now is absolutely essential. If you have a blog or social media channels, update them regularly with any information that will help your customers use your services or make a purchase, whether online, over the phone or in person. More specifically, have a dedicated page and banner on your website — that you update regularly — with information related to COVID-19 as it pertains to your business. Old-school brainstorming It’s time for an all-hands-on-deck brainstorming session. But this time, instead of just pulling in C-levels or marketing managers, it’s time to ask everyone at your business for their ideas. One of the biggest mistakes a company can make is ignoring ideas from employees. During this process, you might find hidden relevant talents. Perhaps there’s someone who likes to draw and can help create an ad, or maybe there’s someone with extensive experience managing LinkedIn. Without giving away the agenda, call a company meeting. At the meeting, give everyone 15 minutes to come up with 10 creative ideas to help drive sales or improve brand awareness. There are no wrong answers here. Out of the mix of suggestions, you’re bound to get several new ideas and people willing to help implement them. It’s hard to know what the future holds and what changes are here to stay. Be flexible, be open to creative adaptability, be brave enough to try new marketing tactics, and always track the efficacy of your efforts to make future decisions based on what works and what doesn’t. ■ Brooke McClary is the digital marketing and SEO lead at Sole Graphics, a boutique creative agency in Bellingham. Visit them at www.solegraphics.com.
HEALTHCARE OP-ED BP
PHOTO: iStockphoto.com/FG Trade PHOTO: iStockphoto.com/FG Trade
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How will the pandemic change the future of health care? These are the long-term changes we can expect to see Roger Stark, M.D., FACS The COVID-19 crisis has had a devastating impact on the U.S. health care delivery system. Hospitals have seen their emergency rooms and intensive care units overburdened with critically ill patients. Doctors, nurses and other front-line workers have worked long hours over extended periods of
time treating these desperately sick individuals. As Americans eventually return to a more normal life, the question is whether the health care delivery system will retain those temporary changes that were necessary to fight the pandemic. Here is a summary of what we can expect to see in our health care system as we emerge from the current crisis.
Millions of Americans have been laid off as businesses of all sizes have closed or downsized. Before the crisis, half of all Americans received their health benefits through their employer or their spouse’s employer. Employer-paid health benefits are popular among workers and employers and, having been around for roughly 70 years, are part of the employment landscape. As the pandemic pass-
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The pandemic offers a chance for the country to re-evaluate our health care delivery system and not only improve public health but also improve patient access to quality, low-cost medical care.
es, employer-paid health insurance will continue, even though workers would have greater security if they were responsible for their own health coverage. There has been a trend in the U.S. toward physicians being employed by hospitals or even employed by insurance companies. The crisis and the economic impact on providers will likely accelerate this employment model. Telemedicine has expanded dramatically during the pandemic. It has been an extremely efficient way for patients to consult with doctors while sheltering at home, and it increases access to health care while holding down costs. As people become more comfortable with online meetings, telemedicine undoubtedly will expand.
Government health insurance entitlements also likely will expand. Although Medicaid began as a safety net government health insurance plan, it has become a piggy bank for a number of social programs. It has expanded and has been used extensively during the pandemic. Based on what we have seen during the past 50 years, the cost of the program and the impact on taxpayers likely will explode. As a reason to expand Medicare, supporters will use the fact that millions of people have lost their employer health insurance. Although a percent of Medicare is paid for by payroll taxes and patient-paid supplements, an ever-growing portion of the entitlement is paid for by the federal general tax fund. This portion will only increase as more Americans are
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added to the Medicare rolls. Obamacare expanded Medicaid to any low-income, able-bodied adult between the ages of 18 and 64. Single-payer advocates are also pushing for a public option, or government-run health insurance, in the Obamacare exchanges. So far, Washington state is the only state to have passed a public option, which is set to begin in 2021. Single-payer advocates will continue to use the pandemic as a reason to increase the government’s role in the U.S. health care delivery system. Private health insurance companies have a strong presence in Washington, D.C., and state capitols. They will continue to have a major role in the U.S. health care system, especially in the employer marketplace. At the beginning of the pandem-
ic, as COVID-19 spread, hospitals in certain areas of the country were overwhelmed. Emergency rooms and intensive care units were functioning above capacity in many locations. From a practical and financial standpoint, it makes no sense for hospitals to increase their number of beds now in case another once-in-a-century catastrophe were to take place in the near future. The pandemic offers a chance for the country to re-evaluate our health care delivery system and not only improve public health but also improve patient access to quality, low-cost medical care. Despite alarming predictions, the COVID-19 crisis will eventually pass. Americans are smart to maintain the best, most responsive health care sys-
tem in the world. This is a system that is based on a vibrant private market, supported as needed by robust government action, that can deal with such widespread medical events. ■ Dr. Roger Stark is the health care policy analyst at Washington Policy Center and a retired physician. He is the author of three books and numerous in-depth studies on health care policy. Dr. Stark graduated from the University of Nebraska’s College of Medicine and completed his general surgery residency in Seattle and his cardiothoracic residency at the University of Utah. He was one of the co-founders of the open heart surgery program at Overlake Hospital and has served on the hospital’s governing board. He retired from private practice in 2001 and became actively involved in the hospital’s foundation, serving as board chair and executive director. He currently serves on the Board of the Washington Liability Reform Coalition.
Thirteen for Thirteen
Frank J. Chmelik and Jonathan K. Sitkin have been selected to the 2020 Washington Super Lawyers list.
There is only one law firm north of Everett that has had multiple lawyers selected to the annual Super Lawyers list for thirteen years in a row and a lawyer, Frank Chmelik, selected every year since the list was started. That law firm is Chmelik Sitkin & Davis. Only five percent of Washington state lawyers are selected to the prestigious list. The team of lawyers at Chmelik Sitkin & Davis have quietly built a reputation for their commitment to responsive, professional and quality service for their clients in It Takes a Team Northwest Washington.
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BP FINANCE
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Tax planning during COVID-19 To be as flexible as possible, businesses should conserve cash on hand Tony Cook, CPA/MS-Tax
Uncertainty. It’s on track to be the overarching theme of 2020. In an environment of uncertainty, two things hold true: It’s important to have a plan, and it’s important to stay flexible.
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To be as flexible as possible, a business should be as liquid as possible. Cash is king To maximize liquidity, business owners should consider the following strategies: • Accelerate collections of receivables (ask for deposits from customers). • Defer payment of payables (ask for terms from vendors). • Defer investments in equipment. • For necessary equipment purchases, maximize financing options. • Sell surplus equipment. • Manage customer demands and payroll to decrease overtime. Another valuable method of conserving cash on hand is not paying taxes based on “same as last year.” Many business owners make their quarterly estimated tax payments based solely on the prior year, operating on the presumption they will make greater profit in the current year than the prior. This is known as the “safe harbor” approach. For the many businesses whose 2020 income will be significantly lower, this approach potentially leads to valuable cash being paid to the government only to have it refunded months later. Not only are you giving away cash, but it may result in the need to obtain other financing with interest charges. As an alternative to the “safe harbor,” taxpayers have the option to pay only as much tax as is necessarily due on their earnings. In other words, if your business generated no profit in the first half of the year, no tax needs to be paid in the middle of the year. Currently, the quarterly payment schedule for 2020 taxes is July 15 (for quarters one and two), September 15 and Jan-
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Are you creating breathing room in the future, or is there an impending crunch? The sooner you know a problem exists, the sooner you can influence the outcome.
uary 15. There have been proposals to delay these dates. If further delays are allowed, taxpayers who haven’t planned could be caught by surprise with a large tax payment obligation they are unable to make. With these strategies in our toolbox, a cash flow projection plan can take shape. The projection should identify cash in the bank on a monthly — or better, weekly — basis. Look at multiple cash flow projections: a “worst case” scenario and a “more than likely” scenario. What action could you take now to lessen the impact of the “worst case”? Update the plan as each period passes. Are you
creating breathing room in the future, or is there an impending crunch? The sooner you know a problem exists, the sooner you can influence the outcome. Tax law changes Legislation passed this year has contained several relief provisions for individuals and businesses. Most individuals should have received their stimulus checks by now. Businesses are afforded relief on previous limitations in their ability to carry back losses to prior years and receive a refund of previously paid tax. Taxpayers are allowed a five-year carry back for losses generated in taxable years beginning in 2018, 2019 or 2020. Other relief provisions intended to keep cash in the hands of businesses relate to federal payroll taxes. Payroll tax deposits are one of the largest cash expenditures for employers each month, and these new provisions can provide immediate relief. However, you must be mindful of the nuanced regulations at play among the new provisions. It requires thoughtful planning and attention to navigate Paycheck Protection Program loans, the wages qualifying for PPP loan forgiveness, and the numerous payroll tax credits and payment deferrals, all of which are connected. As always, contact your tax adviser for how these incentives and relief provisions affect your specific situation. There are various “puzzle pieces” to fit together to ensure you’ve taken advantage of those items for which you are eligible. ■ Tony Cook is a senior manager with Larson Gross. His experience involves all aspects of business and invidual tax advisory services, including tax planning and entity structuring. He serves as the firm’s technical consultant on partnerships and its expert on the Affordable Care Act.
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BP TECHNOLOGY
PHOTO: iStockphoto.com/fongleon356
How to boost cybersecurity for your small business Security breaches at big companies get a lot of attention, but smaller firms are increasingly at risk, too Merrick Tam Security breaches at big companies get a lot of attention, but smaller firms are increasingly at risk, too. The number of attacks on companies with fewer than 250 employees is steadily growing, according to an
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internet security threat report released by software security firm Symantec. Experts from Consumer & Community Banking at JPMorgan Chase & Co. suggest that businesses of all sizes need a plan to defend cybersecurity threats. So, at the recent Chase for Business conference in New York, the group shared with entrepreneurs some tips on how to protect data, assets and
transactions. Here are the highlights: Get to know criminals’ tricks Cyberattacks may be launched over the internet or rely on someone with physical access to a company’s premises, explained two JPMorgan Chase cybersecurity executive directors, Eric Smith and Anthony Karnavas. Hackers can infiltrate businesses by using:
• Emails that contain malicious hyperlinks and attachments. These messages often look like they came from a colleague and are commonly referred to as “phishing” attempts. • Legitimate-looking websites that are set up to capture users’ login credentials. • Social engineering to convince unsuspecting employees to reveal confidential information or credentials. • Mobile apps that contain malicious code. These usually affect individuals who have “jailbroken” their devices to remove native software. • Physical devices, most notably USB sticks, infected with malicious software. Hackers may connect one to a company system or leave it in a public area with the hope that an unsuspecting employee will pick it up, use it and inadvertently infect the company’s network.
quently for critical systems. Require your employees to do the same. • Use the latest antivirus software and ensure that it is updated. Don’t cut corners on protective software. It’s well worth the cost to buy subscriptions so you receive regular updates that recognize and protect against new threats. • Tap resources that educate small businesses on security. Some state and local governments and local business associations host workshops and offer information such as cybersecurity playbooks for businesses. Also, look for resources such as the online Small Business Community group run by the U.S. government’s Computer Security Resource Center. Fraud attempts may infiltrate even
the strongest security measures, so continually monitor your accounts for suspicious activity, Smith said. Provide good internal controls, such as initiating a review process before paying any new party for the first time. And, most importantly, foster a culture of cybersecurity awareness among employees and customers. Lastly, trust your instincts. “If you receive a request via email to perform a transaction, click on an unfamiliar link, or are offered a prize, make sure you recognize the source,” Karnavas said. “If it doesn’t feel right, it’s most likely not a legitimate request.” ■ For more information and resources to keep your business secure, visit the Chase Security Center or contact Merrick Tam, VP, senior cash management consultant, at merrick.h.tam@chase.com.
Bolster your defenses Small-business owners typically have lean information technology support, but developing a good cybersecurity plan doesn’t have to be an overwhelming task. Below are some tips from Chase to help protect your business: • Secure your accounts. Ensure you know who has access to your network and to all of your applications and systems. When employees leave jobs, make sure their access is turned off. When they change jobs within the company, make sure their access matches the requirements of their new job. • Use strong passwords. Develop your own naming conventions so you can remember creative, unique passwords for every site or system that you access. Change them fre-
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Sea Change at the Lighthouse (Continued from page 27)
BP: Describe its use. Hans: Our 1 1/2-year recovery programs with case management, 16 quarterly courses, counseling, work training, etc., are all bursting at the seams. We need specialized shelter for seniors, for the medically fragile and for walk-in families. Plus, later-stage social entrepreneurship opportunities. The vision is to build the scaffolding necessary for life transformation, to secure talented staff, and to continue meeting the needs for decades to come.
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BUSINESSPULSE.COM | SEP/OCT 2020
BP: Specifically, define “scaffolding.” Hans: I hear a common refrain: “Housing first, housing first, housing first.” We’re not just a housing-first, “three hots and a cup” model. The core need for people in homelessness is not just a place to live. That’s cosmetic, a symptom of deeper issues. We zero in on the greatest need we all share: human connection. They’ve lost the relationships that meant the most to them. Quick Band-Aid stuff sounds great, feels great. But we’re committed to the long journey — physical, spiritual, relational and mental. It works. They don’t need the addiction as salve for the pain of loneliness. BP: Sounds like a steep mountain climb. Hans: It is. They want a sense of forgiveness for the wrongs they’ve done.
They need grace to take that backpack of shame off their back. They tend to sit in judgment of self and consider their lot as penance for wrongdoing. They don’t have to bear this burden. They need an encounter with the one that can take that burden away, and then get the support and opportunity to run with a newfound life. BP: So, a perfect storm with a happy ending? Hans: Predictably, with COVID19 we’ll see a longer-term impact that people don’t yet realize — an ever-greater need for the Lighthouse Mission Ministries. A driving force that keeps me going is the vast sea of people so desperate to be saved. We’re saying to them, “Here’s a winning lottery ticket for you, take it.” ■
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