Business Pulse Magazine: Spring 2016

BUSINESS PERSON OF THE YEAR AWARDS, MARCH 23

Kelli Linville: ‘I think I was made for this role…’

MAGAZINE SPRING 2016

‘Change is Inevitable.

Growth is Optional.’

Bornstein stayed a step ahead in the ever-shifting fish industry, by adapting through 43 years from the sea to the sell, worldwide

Regulations gone wild.

Have we reached the tipping point?

Landmark litigation gets building permit to end 7-year fight

2016 Lifetime Achievement Award Recipient Jay Bornstein, Chairman/President Emeritus Bornstein Seafoods Inc.

Secrets of the seed

World’s best potatoes sprout from Whatcom County

Coffee room with a view:

The Woods’ new Roastery

The Publication of The Whatcom Business Alliance

Invest in good companies that meet sustainable criteria.

Simple.

The Saturna Sustainable Funds seek to invest in companies and issuers that demonstrate sustainable characteristics with low risks in areas of the environment, social responsibility, and governance (“ESG”).

Find out more today.

www.saturnasustainable.com

Saturna Sustainable Equity Fund (SEEFX) Saturna Sustainable Bond Fund (SEBFX)

Please consider an investment’s objectives, risks, charges and expenses carefully before investing. For this and other important information about the Saturna Sustainable Funds, please obtain and carefully read a free prospectus or summary prospectus from www.saturnasustainable.com or by calling toll-free 1-800-728-8762.

Investing involves risk, including possible loss of principal. The Saturna Sustainable Funds limit the securities they purchase to those consistent with sustainable principles. This limits opportunities and may affect performance. Distributor: Saturna Brokerage Services, a wholly-owned subsidiary of Saturna Capital Corporation, investment adviser to the Saturna Sustainable Funds.

Bernie Garcia, Moctezuma’s World traveler Photographer Fiery foodie

Each and every one of us is an original. Shaped by unique in uences that make us who we are today.

Here at Heritage Bank, we think differences can build a better bank, too. That’s why we share the best ideas from across all of our branches and local communities with one goal in mind: to serve our customers better every day. By sharing our strengths, we’re able to offer customers like Bernie Garcia—and you—more than a community bank.

But rather, a community oƒ banks.

W H AT ’ S YO U R H E R I TAG E?

HeritageBankNW.com | 800.455.6126

© 2016 Heritage Bank Member FDIC

TABLE OF CONTENTS Among the 11 finalists considered by the selection committee for the Whatcom County best-in-business awards with Signs Plus in the Small Business category, Co-owner/ President Jim Sutterfield displays the Semiahmoo Resort sign in the Bellingham company’s paint facility.

Recipients will be revealed March 23 from among four small businesses, three startups, and four outstanding individuals up for Business Person of the Year honors.

(Photo by Patrick Downing)

32 38 46 22 80

COMMON TRAITS OF TOP STARTUPS INNOVATION FOLLOWED BY RAPID GROWTH The three finalists for Startup of the Year have demonstrated surefire methods in unique niches of the local market, and beyond. Aslan Brewing Company serves original beverages certified as organic. Capstone Physical Therapy quickly grew into four locations. MCUSA found a way to ease some pains in dealing with Medicare.

SMALL, BUT STANDING TALL AS ACCOMPLISHED FINALISTS

Four finalists in the category of companies with fewer than 100 employees range across industry fields of high-end spa linens, tech solutions, HVAC, plumbing, and commercial refrigeration, and production of specialty custom signs. Say hello to The Comphy Company, Data-Link West, Lynden Sheet Metal, and Signs Plus.

BUSINESS PERSON OF THE YEAR NOMINEES: STARS IN A BROAD GALAXY

From among dozens of bright nominations: Three of the finalists – Ron Buchinski (Lighthouse Mission), Don Fisher (Lynden Manor), and Dale Zender (PeaceHealth Medical Group) – have dedicated their lives to critical care for people requiring specially-managed needs – homeless, seniors, and hospital services. The fourth, Lynne Henifin, would seem to need a clone or two as she runs an aggregate of four family-owned companies in construction, safety signs, and commercial real estate management.

COVER STORY: JAY BORNSTEIN REPRESENTS A LIFETIME OF ACHIEVEMENT IN SEAFOOD

“I never had a real job. I didn’t go to work.” Jay Bornstein said that about his approach to his 43-year career at his family’s Bornstein Seafoods Inc. It brings him front and center as the 26th recipient of the Whatcom Lifetime Achievement Award. Bornstein has engendered persistent commitment to the entire spectrum of seafood. “We know the industry, we know processing, and we connect them with the world….”

VOICES: PERSONALLY SPEAKING WITH MAYOR LINVILLE, AND OPINING IN THE FREE MARKET

With a running start on her second term as mayor of Bellingham, Kelli Linville details her upbringing in a commercial fishing family, and how that childhood established guidelines for the neutral, collaborative style of politics she aspires to: getting along to get things done….Guest columnists opine about a competitive Washington in industrial output, best practices, some tech tips and favorite apps, and much more in pp. 96–109.

4 | BUSINESSPULSE.COM

The only Range sophisticated enough to be a Miele Allow the Miele Range to guide you to extraordinary culinary adventures. Only through Miele’s intuitive functionality and impeccable design, can the sanctuary of your kitchen become a world of exploration night after night.

Exclusively at:

Appliances • Mattresses • Furniture 360.733.5900 • www.dewaardandbode.com Main Showroom: 3944 Meridian St. • Bellingham, WA Outlet Center: 4175 Hannegan Rd. • Bellingham, WA We Service What We Sell!

TABLE OF CONTENTS Seed potato starters fill shelves in the tissue culture lab at Ebe Farms north of Ferndale, where they are scientifically monitored for quality control, purity, and new variety development. In Whatcom County, one of the world’s most fertile grounds for seed potatoes, an estimated 40 varieties are cultivated – around five times more than just a couple of decades ago.

(Photo by Jayson Korthuis, Guardian Media)

54 66 74

THE SEEDS OF GREATNESS…IN THE WORLD OF POTATOES

How did our little corner of Washington become the premier region for the highest-quality seed potatoes in the world? It’s a story of climate, innovation, commitment to family and life on the farm, and, most of all, good oldfashioned hard work. Farmers named Ebe, Hawley, and Bedlington pioneered this potato industry niche.

‘GET THEM OFF OUR BACK!’ REGULATIONS RAISE HACKLES ON WHATCOM BUSINESS Have we reached a boiling point in governments regulating business? Survey says: Yes. Definitely. Taxes, regs, and fees rank highest among “major constraints” for owners and executives. Many say they are simply fed up, and fear the worst for U.S. manufacturing and customers.

90

YES, YOU CAN FIGHT BACK AND WIN. AFTER 7 YEARS, LOCAL COUPLE PREVAILS AGAINST COUNTY

Julie and Mike Carney bought land in 1992, and they sought to build on it a community retirement home featuring a special wing for residents with Alzheimer’s. The County spurned their application repeatedly, but they fought at great personal expense ($100,000-plus) until a court ruled in their favor. “They should be ashamed of what they did to us,” Julie said.

ROASTERY: THE WOODS COFFEE OPENS WINDOW TO ‘SEE, HEAR, SMELL’ ROASTING & BREWING In the WBA Member Spotlight, CEO Wes Herman and Head Roaster Shea Hagan discuss the innovative first for this community (notice credit to Starbucks’ version), built for cuppings and variety of brews in front of all-glass wall.

Correction: In our January (Winter) edition an editor’s caption under a photo of Peggy J. Hinton incorrectly identified her as owner of Strider Construction on page 27. The accompanying article by Cheryl Stritzel McCarthy correctly stated that Ms. Hinton owns Strider Company and Strider Industrial Park. We apologize for the mistake.

For editorial comments and suggestions, please write editor@businesspulse.com.

Business Pulse Magazine is the publication of the Whatcom Business Alliance. The magazine is published at 2423 E. Bakerview Rd., Bellingham, WA 98226. (360) 746-0418. The yearly subscription rate is $22 (US). For a free digital subscription, go to businesspulse.com or whatcombusinessalliance.com. Entire contents copyrighted © 2016 – Business Pulse Magazine. All rights reserved.

POSTMASTER: Send address changes to Business Pulse Magazine, 2423 E Bakerview Rd., Bellingham, WA 98226.

6 | BUSINESSPULSE.COM

Publisher Tony Larson Editor/Writer Mike McKenzie Feature Writers Gerald Baron Dave Brumbaugh Susan B. Cole Sherri Huleatt Mary Louise Van Dyke Guest Columns Randall Benson: Lean Don Brunell: Washington Manufacturing Todd Myers: Environmentalism Brad Owens: NW Jobs Alliance Bob Pritchett: Book Excerpt Erin Shannon: Small Business Tech Help/Big Fresh: Technology

Rose Vogel: HR Cover Photo Patrick Downing Photography Patrick Downing Katie Scott Courtesy Photos Aslan Brewing Company Jody Bergsma Gallery Brio Laundry/ioCreative Bornstein Seafoods City of Bellingham The Comphy Company FastCap Geyer & Associates Jayson Korthuis/Guardian Media McNett Corporation Adam Navarrete/ The Woods Coffee

Northwest Propane PeaceHealth Medical Group Donny Rubenack Mark Turner, TurnerPhotographics.com VSH CPAs Graphic Design/Layout Patrick Downing Adam Wilbert Ad Sales Jon Strong Customer Service Patrick Downing Subscriptions Katie Scott Administration Danielle Larson

Right Care. Right Here.

CARE THAT KEEPS YOU WORKING

When it comes to caring for you and your employees, PeaceHealth Medical Group has the expertise to help you and your team feel your best.

Our annual physicals, immunizations and screenings are designed to keep you healthy and on the job. When illness strikes, our primary care providers and specialists are here with the diagnosis and treatment you and your employees need, right when you need it.

Find the care you need at peacehealth.org/phmg/bellingham

The Whatom Business Alliance is member organization created to enhance Whatcom County’s quality of life through the preservation and creation of healthy businesses and good jobs. We encourage, support, facilitate, and advocate on behalf of local companies in every industry who are working to retain jobs; local companies interested in expanding their operations and startup companies interested in locating in our community.

Facilitating Business Prosperity & Community Prosperity whatcombusinessalliance.com

EXECUTIVE COMMITTEE

Board Chair Jane Carten President/Director

John Huntley President/CEO

Jeff Kochman President/CEO

Doug Thomas President/CEO

Marv Tjoelker Partner/Chairman

Mills Electric, Inc.

Barkley Company

Bellingham Cold Storage

Larson Gross PLLC

Saturna Capital

BOARD OF DIRECTORS

Ken Bell President

Pam Brady Director

Janelle Bruland President/CEO

Tyler Byrd President/CEO

Jeremy Carroll Vice President

Best Recycling

NW Govt. and Public Affairs BP Cherry Point

Management Services NW

Red Rokk Interactive

Dawson Construction

Scott Corzine Major Accounts Executive

Andy Enfield Vice President

Guy Jansen Director

Sandy Keathley Founder

Tom Kenney Regional President

Puget Sound Energy

Enfield Farms

Lynden Transport, Inc.

K & K Industries

Washington Federal

Bob Pritchett President / CEO

Brad Rader Vice President

Becky Raney Owner/CEO

Faithlife, Corp

Rader Farms

Print & Copy Factory

Ben Kinney President/CEO Keller Williams, NVNTD

Larry MacDonald General Manager Four Points by Sheraton Bellingham

Sarah Rothenbuhler Owner/CEO

Jon Sitkin Partner

Billy VanZanten CEO

Josh Wright VP/Broker

Birch Equipment

Chmelik Sitkin & Davis P.S.

Western Refinery Services

Bell Anderson Insurance

8 | BUSINESSPULSE.COM

Whatcom Business Alliance | 2423 E. Bakerview Road, Bellingham, WA 98226 | (360) 746-0418

LEADING OFF Tony Larson | President, Whatcom Business Alliance The Whatcom Business Alliance is a member organization made up of businesses of every size and shape, from every industry. The WBA enhances the quality of life throughout Whatcom County by promoting a healthy business climate that preserves and creates good jobs.

When local businesses sneeze, the community catches a cold

I

f you are not part of the Whatcom Business Alliance leadership network, I invite and encourage you to get on board. Next month will mark our 4th anniversary.

The WBA was founded as a nonprofit, nonpartisan economic development organization with the primary mission of facilitating business success and community prosperity.

And, to take a leadership role in local business advocacy.

We’ve been doing exactly that, and also growing our leadership network and working to educate and engage business owners, executives, and community leaders on issues that have a direct impact on the health and prosperity of our community moving forward. If you believe in our mission, I urge you to join our efforts.

Every issue that impacts the health of local business also impacts the health of our community. You may have heard the expression, “When our businesses sneeze, the community catches a cold.” According to a recent WBA business survey of more than 200 local businesses the regulatory environment came up as the No. 1 impediment to business growth.

Businesses are beginning to sneeze.

REGULATIONS GONE WILD In this edition you can read our 10 | BUSINESSPULSE.COM

analysis called “Regulations Gone Wild,” in which we ask the question: “Have we reached a tipping point?” I don’t know the answer to that question, but we have certainly reached something.

In the past, many business owners have complained about what they describe as a significant overreach by a number of regulatory authorities.

However, many have been and remain unwilling to speak for the record about specifics. Many believe that if they speak out, they will be targeted for retribution. Or, that rocking the boat will damage their relationship with an agency and undermine efforts to find reasonable solutions to their challenges. I hear that more often than not. As a result, they typically choose to “keep a low profile,” or “fly under the radar.”

That might be changing. We might have arrived at the tipping point.

More business owners stepping up on-the-record to vocalize their specific concerns. That’s my hope, because if a problem is not identified specifically, it can’t be solved. In this edition a few from the business community have spoken up about specific challenges they face. One literally spent hundreds of thousands of dollars to stand on principle and won. Let’s hope more will do the same.

On the other side of the coin you find policy makers and staff members of local bureaucracies. The rules makers and enforcers. The policy members are elected officials. It is important that they hear the concerns of all those that their decisions impact. It is

also important for those who feel the impact to understand what the policy makers believe and why they do what they do.

On the other hand many staff members appear not to understand or they show little empathy for the concerns of those impacted. Their job is to interpret and enforce the rules.

In many cases, common sense doesn’t apply. This disconnect needs a rem-

Many believe that if they speak out, they will be targeted for retribution.

As a result, they typically choose to “keep a low profile,” or “fly under the radar.” That might be changing. We might have arrived at the tipping point. edy. The WBA will work to facilitate this process by identifying the problems and by working respectfully with lawmakers to find solutions.

WHATCOM COUNTY COMPREHENSIVE PLAN UPDATE Every eight years or so, the County is required by law to update the Whatcom County Comprehensive Plan – the guidebook for future land use planning and economic development. It consists of 11 chapters with 7

indices. It is a very thick, complicated document that impacts everyone in Whatcom County.

Language matters in this document. The difference between “may” and “shall” can mean the difference between yes and no for a new business location, an existing business expansion, a home getting built, more jobs, and much, much more.

While every industry in Whatcom County will be affected by the Comp Plan update, in late January the WBA hosted a breakfast meeting to inform businesses with direct ties to and interests in the heavy industrial zone at Cherry Point. The reason: some interest groups have stated goals of using the Comp Plan to “de-industrialize” Cherry Point. Their strategy is not one big thing, but rather death by a thousand cuts. Limit future expansion. Limit future opportunity. More rules. More difficulties. More costs.

Downzoning.

We encouraged those companies to attend the Whatcom County Council meeting on Jan. 26 and share how they rely on the success of the output that comes from the Heavy Industrial-zoned area at Cherry Point: the direct and indirect impact on local wages, philanthropy, our tax base, volunteer giving to nonprofits, and the multiplier effect of these businesses throughout the county.

We offered the attending business leaders a look at the economic impact study that the WBA commissioned on this topic in late 2014. The business community engaged and the council chamber was packed. Our ask was that the Whatcom County Council recognize the Cherry Point Heavy Industrial Area as a valuable economic driver in the Comp Plan.

As I said, Cherry Point manufacturing is only one of many industries impacted by the Comp Plan update.

As the process moves forward, the WBA will provide you with progress reports and calls-to-action if necessary. Thanks to all of you for paying attention to these issues that impact everyone in the county. Your voice is valuable and important.

BUSINESS PERSON OF THE YEAR On Wednesday evening, March 23, we’ll celebrate local business success at the 30th Whatcom County Business Person of the Year event at Four Points Sheraton, Bellingham.

We’ll recognize the top startup companies, small businesses, business people, and add a new recipient to our Whatcom County Lifetime Business Achievement perpetual trophy.

This event is important because it underpins a basic premise of the WBA: Business success fuels community prosperity. If you want more of something, you encourage it. That evening is all about encouraging business people for their efforts and successes in job creation, philanthropy, innovation, and community involvement. If you’d like to gather with about 450 other business leaders as we celebrate and recognize business achievement, go to our WBA website, listed at the bottom of every page of the magazine, and purchase an 8-person table or individual tickets. I look

forward to seeing you there.

OTHER UPCOMING WBA EVENTS In addition to the awards banquet March 23, we’ve got a number of upcoming events that provide an opportunity for you to learn, grow, and connect. Industry Tours, Whatcom Business Academy, President’s Club events, member appreciation activities, board presentations, Northwest Business Expo, Economic Forecast breakfast, and more. Go to our website and click on events to register you and your staff.

If you believe as we do that business success is the single most important driver of community and economic prosperity, and you want to be part of facilitating local business success, including yours, then I encourage you to join our leadership network. If you would like to find out the many ways you can engage, give me a call and I’ll buy you a coffee and share some of the exciting things the WBA is doing.

Enjoy the edition.

Experts in Injury Rehabilitation & Prevention

Specializing in: s (AND 5PPER %XTREMITY )NJURIES s ,OWER %XTREMITY )NJURIES s 6ESITBULAR 2EHAB s 3PORTS )NJURIES s 0OOL 4HERAPY s /CCUPATIONAL )NJURIES s .ECK "ACK )NJURIES

For an appointment call...

Bellingham s 752.1575 Lynden s 354.5245 805 Orchard Drive, Suite 2 1610 Grover, Suite B-2 WHATCOMBUSINESSALLIANCE.COM | 11

SPECIAL SECTION: BUSINESS PERSON OF THE YEAR FINALISTS

Whatcom Business Awards Memorable celebration of the crème de la crème

About 450 persons filled the ballroom for the sold-out annual dinner honoring the stars of business in 2015. This year the finalists and winners will take the stage March 23 – the 30th consecutive year of this celebration. (Photo by Mike McKenzie)

By Sherri Huleatt

T

his year marks the 30th anniversary of our Business Person of the Year Awards dinner, standing out as the longestrunning awards of its kind north of Seattle.

And, more than 100 winners later, this multi-faceted event March 23 celebrates the Whatcom County business and commerce community.

Each year, seasoned professionals and startups alike get decked out in their evening best to honor their peers, to meet up-and-comers, and, if they’re lucky, to give an acceptance speech.

Each year a music theme plays in the background as the winners approach the podium for the presentation.

An appropriate overall musical theme for the event would be “Memories,” by Barbra Streisand. Hundreds hold to memories from past events, dating to the ‘80s.

A quick glance back at what started it all: • The dinner to honor an annual Business Person 12 | BUSINESSPULSE.COM

of the Year first took place in 1986 and it honored the late Don Haggen of grocery renown.

• Four years later, two new awards expanded the program – Lifetime Achievement in Whatcom Business (David Morse of Morse Hardware), and Small Business of the Year (Lehmann’s Appliance Center).

• And finally, in 1994 the Startup Business of the Year joined the lineup (Bagel Factory) In a separate series, you’ll enjoy the recollections of several past winners’ experience at the podium.

Presented by the Whatcom Business Alliance and Business Pulse Magazine, this best-in-show awards program recognizes the special enterprise of all companies and business leaders throughout the local area, with nominations open to and solicited from the public.

Countless nominations have poured in. Our selection committees of peers have selected more than 400 finalists over the years.

And, 103 winners.

Four more will join that esteemed list, gleaned from among this impressive list of finalists in the Class of 2015:

Award Winners History BUSINESS PERSON OF THE YEAR

1986 Don Haggen, Haggen Foods 1987 Dick Metcalf, Metcalf Hodges 1988 Mike Brennan, Bellingham/Whatcom Chamber of Commerce 1989 Fielding Formway, Arco Cherry Point 1990 Hal Arnason Jr., Arnason Realtors 1991 Sid Baron, Exxel Pacific 1992 Jim Wynstra, Homestead, Inc. 1993 Don Stern, Homax, Inc. 1994 Jody Bergsma, Bergsma Galleries 1995 Jim Frederick, Intalco Aluminum 1996 Peggy Zoro, Key Bank 1997 Glenn Butler, Arco Cherry Point Refinery 1998 Dean Shintaffer, Sound Beverage 1999 Craig Cole, Brown and Cole Foods 2000 Peter Paulson, Hotel Bellwether 2001 Ray Caldwell, Little Caesars Pizza 2002 Elizabeth Grant, Stewart Title 2003 Larry Wickkiser, Airporter Shuttle 2004 Rud Browne, Ryzex, Inc. 2005 Nick Kaiser, Saturna Capital 2006 Larry Weiber, Aluminum Chambered Boats 2007 Dale Henley, Haggen Foods 2008 Scott Walker, Walkers Carpet 2009 Wes Herman, Woods Coffee 2010 John Ferlin, Brooks Manufacturing 2011 Jeff Kochman, Barkley Company 2012 Bob Pritchett, Logos Bible Software 2013 Scott Renne, Blue Sea Systems 2014 Ben Kinney, NVNTD, Keller Williams RE Bellingham

SMALL BUSINESS OF THE YEAR 1990 Lehmann and Sons 1991 Ferndale Drug 1992 Il Fiasco 1993 International Athletic 1994 Louis Auto Glass 1995 Garys’ Clothing 1996 Office Systems Northwest 1997 Hardware Sales 1998 Bakerview Nursery 1999 Bellingham Travel and Cruise 2000 McEvoy Oil 2001 Northwest Propane 2002 Brenthaven 2003 Absorption Corporation 2004 Andgar 2005 Northwest Computer 2006 Brambleberry 2007 DeWaard & Bode 2008 Credo Construction 2009 FastCap 2010 Avenue Bread Company 2011 Chuckanut Bay Foods 2012 Vital Choice Seafood 2013 Scholten’s Equipment 2014 Home Port Seafoods

STARTUP BUSINESS OF THE YEAR 1994 Bagel Factory 1995 Northwood Hall 1996 Merry Maids 1997 LaserPoint Awards 1998 Pastazza 1999 LaserJamb 2000 Siscosoft 2001 Chrysalis Inn and Spa 2002 Nuthouse Grill 2003 Aluminum Chambered Boats 2004 Emergency Reporting 2005 K&K Industries 2006 Fairhaven Candy Company 2007 Big Fat Fish Company 2008 Tatango 2009 Reset Games 2010 Fat-Cat Fish Company 2011 Infusion Solutions 2012 Next Level Training 2013 Red Rokk Interactive 2014 Innotech Metal Designs

WHATCOM BUSINESS LIFETIME ACHIEVEMENT AWARDS

1990 David Morse, Morse Hardware 1991 Hank Jansen, Lynden Transport 1992 Jack Cole, Brown and Cole, Inc. 1993 Red Haskell, Haskell Corporation 1994 Ira Yeager, Yeager’s Sporting Goods 1995 Ivor Allsop, Allsop, Inc. 1996 Chuck Wilder, Wilder Construction, Inc. 1997 Irwin LeCocq, Peoples Bank 1998 Jim Talbot, Bellingham Cold Storage, Barkley, Inc., Talbot Industries 1999 Ann Jones, KGMI, KISM Radio 2000 Brian Griffin, Unity Insurance 2001 Don Haggen, Haggen Foods 2002 Alta McClellan, Hardware Sales 2003 Harold Walton, Walton Beverage 2004 Bob Diehl, Diehl Ford 2005 Hal Arnason Jr., Arnason-Miller Real Estate 2006 Ken Imus, Jacaranda Corp 2007 Jerry Chambers, Chambers Chevrolet 2008 Sid Baron, Exxel Pacific 2009 Jack Westford, Westford Funeral Homes 2010 Dick Hempler, Hempler Meats 2011 Frank Imhof, IMCO Construction 2012 Nick Kaiser, Saturna Capital 2013 Dan Washburn, Windermere Real Estate 2014 Terry Smith, Smith Gardens

WHATCOMBUSINESSALLIANCE.COM | 13

WHERE THEY ARE NOW

Blasts from the Past:

Look where they are now….

They Rokked the awards dinner last year – Red Rokk Interactive’s staff seen here, that is. Red Rokk, a past winner of the Startup Business of the Year honors, produces the nominee videos that have highlighted the event the last two years.

(Photo by Mike McKenzie)

By Sherri Huleatt

T

o celebrate the Whatcom Business Awards’ three decades of highlights, we decided to catch up with some past winners to see how life and business have been treating them.

For some companies, like Louis Auto Glass, winning Small Business of the Year provided a catalyst for their continued success. For others, such as Jody Bergsma, winning Business Person of the Year was the crowning achievement of a long and successful career as an artist and business owner.

Impressively, many of the award winners in all categories are still in business. There’s no doubt that winning the “Startup of the Year” award helped many fledgling companies find the recognition and support 14 | BUSINESSPULSE.COM

they deserved for their innovation and fortitude in pursuit of their ambitions.

The fact that almost all are still conducting business is a testament to the support found in our tightlywoven community and the sustained acknowledgement of exceptional achievements.

So, we invite you to take a look into the lives, the business advice, and the sometimes emotional recollections of the awards ceremony with a lineup of past winners.

One you’ll find on two lists—top Business Person and Lifetime Achievement—Nick Kaiser at Saturna Capital. He, Sid Baron, and the late Don Haggen have been the only repeats.

Here’s our visit with several previous awardees who we recently caught up with to see where they are now:

Louis Auto Glass

Rick Adelstein

Award: Small Business of the Year, 1994 When Louis Auto Glass won Small Business of the Year in 1994, its president, Rick Adelstein – the grandson of the founder, Louis Adelstein – couldn’t believe his ears. “When they said we were nominated, I was flabbergasted,” Adelstein said. “During the ceremony when they said we won, I had to ask two or three times, ‘Was that us they announced?’

“It was a thrill and a shock, and I give all the appreciation to my employees….you’re only as good as your employees, and I have great employees.”

Adelstein marks their win as the moment the community started to notice his company. Since then, revenue has increased about 75 percent and they’ve grown from 25 employees to 35. Louis Auto Glass ranks as one of the Top 40 auto glass companies in America and stands as the second-oldest family-owned-and-operated glass company in the nation.

The future of the company calls for Adelstein’s plans to pass ownership to his children to continue the legacy.

“I always say that it all started in 1994 when we won the Whatcom Small Business of the Year,” Adelstein said.

Jody Bergsma, Founder/Owner of Bergsma Gallery

Jody Bergsma

Award: Business Person of the Year, 1994 For Jody Bergsma, an internationally-recognized watercolor artist, winning Business Person of the Year wasn’t just her greatest achievement—it was a serious step out of her comfort zone. “It was really exciting, especially for an artist who spends most of her time in the studio,” she said. “It made me nervous to get up in front of so many people.

“To go from being a small town girl and then rising up to be recognized as an important business person in your community—it’s a big leap. And the most important recognition you can get is from your peers.”

The greatest thing to come out of Bergsma’s win, she said, is the ongoing business group she started at the behest of other local women professionals. “I was approached by other women in business. When I first opened my business in 1980 there weren’t many women in businesses, but now, 20 years later, we still have monthly meetings and we have read 100 business books as a group. It just shows how one little change in your life can change your life’s direction.”

In 1994 Bergsma was working seven days a week, 12 hours a day. Now, at 60, she’s cut back on work hours and has reduced her operations. She scaled back from two retail stores and a restaurant to one 7,000-square foot gallery that’s been in the Haskell Business Center for 25 years, downsizing overhead from 40 employees to six. A significant part of her business revenue now comes from selling licenses to her work internationally.

Bergsma offers business advice to be a lifelong learner. “Business is always changing, so you have to stay on top of what’s happening in your industry if you want to succeed,” she said.

WHATCOMBUSINESSALLIANCE.COM | 15

WHERE THEY ARE NOW

Garys’ Clothing

Gary Lupo

Award: Small Business of the Year, 1995 Gary and Barbara Lupo opened Garys’ – a clothing boutique headlined on their website “Modern Clothing for Men & Women” – a whopping 40 years ago. Despite fashion ranking as one of the toughest small business retail industries in which to find success, the Lupos have enjoyed years of growth and happy customers. And 20 years ago, the Lupos were taken by surprise with their Small Business of the Year award.

“It was a thrill!” Gary Lupo said. “You don’t ever think you’re going to be chosen—you always think it’s going to be the other guy – so it was a big surprise.”

Garys’ is a staple of the downtown Bellingham shopping scene.

Its charming window displays, stellar customer service, and unique product line—much of which is hand-selected by the Lupos at trade shows in New York and Los Angeles—have kept customers coming back for decades.

Garys’ has eight employees—some who have been with the company nearly two decades. “I’m most proud of the relationships we’ve built,” Gary said. “We have a lot of returning customers, and it’s because they trust us to take care of them.”

LaserPoint Awards

Randy and Kathy Cross

16 | BUSINESSPULSE.COM

Award: Startup of the Year, 1997 For some businesses the third time’s a charm. But for Kathy and Randy Cross, owners and founders of LaserPoint Awards, their fourth business did the trick for them as entrepreneurs. After trying and failing to move their swimming pool business from southern California to Whatcom County in 1990, the Crosses decided to switch gears and start a company manufacturing pine and cedar furniture.

Three years after that they set their sights on selling country folk art. But it wasn’t until five years later when they saw a need for local award production and engraving that they found their niche.

Kathy and Randy Cross founded LaserPoint Awards in 1997 and won Startup of the Year the same year. “It was wonderful to win,” Randy Cross said. “There were 600 people in the room and we got to go up and make an acceptance speech. It was one of my first times speaking in front of a large group, but I wasn’t nervous at all.”

Since winning the award, Kathy and Randy have increased sales exponentially by offering new products, but kept their team to just the two of them. In fact, Cross said 2015 saw their highest sales yet, and he expects their numbers to continue climbing upward.

Whatcom County’s small community has allowed the Crosses to establish a strong reputation that keeps nearly all of his customers coming back to LaserPoint. Randy’s advice for other startups is to have a vision that relates to the community you’re in.

“You have to fill a void in your community and bring something new to the table,” he said, “and customers will flock to you.”

Wes Herman

Wes Herman, Owner/CEO, The Woods Coffee Award: Business Person of the Year, 2008 “I remember the night of the award like it was yesterday. I was probably far from everybody’s mind that I could possibly win,” Wes Herman said, recollecting the night of the 2009 awards dinner.

Nobody should have been surprised. By then, six years after startup, a single Woods Coffee drive-through in Lynden had materialized into eight shops around Whatcom County. This month The Woods will open its 18th, and first in Canada (inside a golf resort in Tsawassen Springs, B.C.), and the brand has spread from Lynden (3) to Bellingham (10), Ferndale (1), Blaine (1), and Skagit County (2). They’re inside of Haggen and Safeway grocery stores. Additionally, Herman & Co. have explored other possible locations in Skagit and Snohomish counties.

By his award year Herman counted 72 employees, now more than 200. Two years ago The Woods constructed its own roasting plant and bakery at the Lynden headquarters. The roasting will move to Bellingham this month.

Expansion continues with a huge opening expected by March 15 – Roastery, an extension of the Bellingham Lakeway shop in which customers will have an open view of the roasting and the brewing of The Woods’ proprietary cold coffee, and participate in cuppings.

“When I won the award it was a huge surprise,” Herman said, “There was a big field of stiff competition. I had no chance of winning.” When it happened he froze.

“When my name was announced as the winner, our entire table got so excited. I walked up on stage and I had nothing to say, because I wasn’t prepared to win. It’s a great event, and seven years later, it’s been a great honor and I’ve enjoyed every minute of it. The only downside is…(smiling, cheekily) I’ll probably never win this award twice.”

30TH ANNUAL BUSINESS AWARDS FINALISTS

BUSINESS PERSON OF THE YEAR Ron Buchinski, Lighthouse Mission Don Fisher, Lynden Manor Lynne Henifin, Henifin Constr. & NW Safety Signs Dale Zender, PeaceHealth SMALL BUSINESS OF THE YEAR Comphy Company Data-Link West Lynden Sheet Metal Signs Plus STARTUP BUSINESS OF THE YEAR Aslan Brewing Company Capstone Physical Therapy MCUSA (Medicare) Consulting WHATCOM BUSINESS LIFETIME ACHIEVEMENT AWARD Jay Bornstein, Bornstein Seafoods

WHATCOMBUSINESSALLIANCE.COM | 17

WHERE THEY ARE NOW

FastCap

Paul Akers

Award: Small Business of the Year, 2009 Most companies proudly display every award, certificate, and plaque they’ve ever received. But not FastCap and its president and founder, Paul Akers. While they’ve won many awards ranging from our Whatcom Small Business of the Year to Seattle Business Magazine’s Business Executive of the Year, not a single award is displayed at FastCap. It’s not for lack of gratitude, though, Akers said, explaining that the reason is part of their “Lean” approach, which requires him and his team to deliberately improve themselves every day.

“You’re only as good as the day you’re working—your history is irrelevant,” Akers said. “Our focus is always on how we treat customers in the moment, so we deliberately don’t hang awards.”

FastCap has grown from seven employees in 1997 to 50 today.

They’ve also produced more than 900 new products—created by inventors from all over the globe—and Akers’ YouTube videos on his business practices and lifestyle have racked up hundreds of thousands of views.

Akers’ advice to other business professionals is all about self-improvement.

“If you’re a business owner, you need to spend every second learning Lean,” Akers said. He recently published his second book, Lean Health, and he makes frequent “around the world” trips consulting – much of it philanthropically.

Nick Kaiser, President & Chairman of the Board, Saturna Capital

Nick Kaiser

18 | BUSINESSPULSE.COM

Awards: Business Person of the Year, 2005 and Lifetime Achievement Award, 2012 Nick Kaiser, who co-founded Saturna Capital with his late wife in 1989, is one of just two people in Whatcom County to receive the Business Person of the Year and the Lifetime Achievement Award.

Since the first award in 2005, he’s nearly doubled the company’s employees to 77 globally and tripled revenue. In addition to their headquarters branch in downtown Bellingham, Saturna Capital has opened locations in Malaysia and Nevada. In total, Saturna Capital manages more than $4 billion in assets.

Kaiser attributes his business’s success to continually offering excellent service to Saturna Capital clients. His daughter, Jane Carten, took over managing the business in 2009, but Kaiser remains active within the company by serving as Chairman of the Board and President of the Saturna Environmental Corporation, a subsidiary of Saturna Capital engaged in environmental property management and education.

Kaiser also donates his personal time, serving on the boards of St. Paul's Academy, the Mt. Baker Scout Foundation, and Shawnigan Lake School, and he’s remained active with local firefighters.

Craig Cole, Sr. Consultant, Straight Talk Consulting

Craig Cole

Award: Business Person of the Year, 1999 Craig Cole has made a considerable impact on the community—both as a businessman and civic leader. In 1999, he was honored as “Business Person of the Year”—10 years after becoming president and CEO of Brown & Cole, a grocery store chain founded by his grandfather in 1909.

He became the second Cole to appear on the list of award winners; Craig’s father, Jack Cole, had received the Lifetime Achievement honor in 1992 for his role in growing Brown & Cole to the largest supermarket chain in the state.

“Business success is like a roller coaster ride—sometimes the ride stops at the top, sometimes at the bottom,” Craig Cole said.

“When you are on top, everyone thinks you are a genius. When you are down, you are the goat. The truth is that one is usually neither.

I had great people working with me who were responsible for our successes.”

Although Cole retired on top of the supermarket business in 2006 (and selling to The Markets), he shows no signs of slowing down. He’s currently chairing a $50 million fundraiser for University of Washington (UW) Medicine to advance mental health treatment in and around Washington.

And, he serves as the senior consultant for Straight Talk Consulting, in which he advises on corporate governance and public affairs.

But it doesn’t stop there—his impressive list of titles and memberships is about a mile long: He was a member of the UW Board of Trustees for 11 years; director of Puget Sound Energy Inc.; president of the four-state Northwest Chapter of the National Association of Corporate Directors; an appointee to the state Human Rights Commission, and to the Governor’s Commission on Early Learning, and the list goes on (and on, and on…).

Government has played a huge role in Cole’s life. He served on the Whatcom County Council, and he recalled two of his favorite projects that he helped push through – saving the Mt. Baker Theater Building from redevelopment into stores, and establishing the Whatcom Transportation Authority (WTA).

If success is a roller coaster ride, it appears that even in his “retirement” years Cole is on his way up.

WHATCOMBUSINESSALLIANCE.COM | 19

WHERE THEY ARE NOW

Northwest Propane

Steve VanderYacht

Award: Small Business of the Year, 2001 Steve VanderYacht, owner of Northwest Propane, said that taking the Small Business of the Year award was all about timing. The year Northwest Propane won—54 years after the business was founded—was the same year he stepped in for his dad as owner of the company. VanderYacht’s grandparents founded the company and he hopes that his children—the fourth generation— will someday take over.

Despite fluctuating gas prices and increasingly strict government regulations, VanderYacht has seen steady growth over the years, going from 15 full-time employees to 26 since the award.

He also opened a third location in Mount Vernon, expanding to Skagit County from locations in Ferndale and Lynden.

Northwest Propane remains locally owned, and VanderYacht indicated he is proud of that in light of the industry trend. Most national propane companies grow by purchasing smaller companies. But VanderYacht has bucked the trend and managed to grow while keeping his grandfather’s legacy intact. And he hopes to keep it that way.

His advice for other business professionals is simple: “Take care of your customers and employees, and the rest takes care of itself.”

Emergency Reporting

Dave Adams

20 | BUSINESSPULSE.COM

Award: Startup of the Year, 1994 Since winning “Startup of the Year,” Emergency Reporting has seen continual success. In fact, in 2015 they experienced 40 percent growth and expect that upward trend to continue, according to Co-founder and President Dave Adams.

With more than 40 employees – 47 full-time equivalency in hours – they’ve come a long way from the back of the room.

“That’s where we were, the little guys at a table in the back corner, seven of us at the awards banquet,” Adams recalled. “It was a lot of fun for a small startup, and great to be recognized and be on the stage with that caliber of people.”

He and partner Adrian Mintz, classmates at Western Washington University, started the company with one employee after working together on an entirely unrelated project. Emergency Reporting offers the industry standard of reporting software for fire stations all over the world – allowing them to file incident reports, gather analytics, manage inspections, and more.

Adams had a degree in visual communications, and Mintz in geographical information services (GIS). Adams had started a website development businesses, and Mintz had a GIS company when they teamed up. They discovered a niche in firefighting to sell their software idea. California was the first customer base.

More than 75,000 fire stations across the country and abroad now use Emergency Reporting’s web-based software to manage their fire and EMS reporting and records. The product also is used by the Department of Defense. Hence, the optimism about growth. “We have a lot more business ahead with DoD,” Adams said, “and we’ve added the state of Pennsylvania.

“Every year is new and exciting with major opportunities!” said Adams.

IN THE ‘HOOD: LIFETIME ACHIEVEMENT IRONGATE/E. AWARD: BAKERVIEW JAY BORNSTEIN, BORNSTEIN SEAFOODS Jay Bornstein in his element – on the Bellingham waterfront where he’s spent 43 years working the business his father started in 1934.

(Photo by Patrick Downing)

22 | BUSINESSPULSE.COM

Jay Bornstein: A lifetime in seafood nets lifetime business achievement award Sustaining and growing through three generations Articles by Susan G. Cole

A

family business survives with some luck, yet it takes a leader with the drive to push it forward, to add value and vision, so that it endures for future generations. For Jay Bornstein, Chairman of the Board/President Emeritus for Bornstein Seafoods Inc. (BSI), the sign on his desk says it all:

“Change is Inevitable. Growth is Optional.”

He claimed in a recent face-to-face interview, “I never had a real job. I didn’t go to work.” However, Bornstein’s business philosophy engendered persistent work to seize opportunities and wholly commit to the seafood industry. “We have a strong foundation with independent fishermen,” he said. “We know the processing industry, and we connect them with the world through our sales team.

“This has not been an easy thing. It’s been a struggle. In 43 years, you’re going to have some low spots. Hopefully, they don’t take you out. Most of the time, you just get by.”

Getting by is a modest way of describing his enduring stamp on the risky business of sourcing seafood from northern California waters to British Columbia, processing the catch to a finished form, then selling it – fresh or frozen – around the world.

Although retired from a quotidian role in the business, Bornstein, at 72, is as busy as ever. He’s eager to promote SeaFeast, the new festival celebrating this area’s storied maritime heritage. The two-day festival, featuring food and entertainment, launches Sept. 30-Oct. 1 on the Bellingham waterfront.

“I’m just a wharf guy,” he said, chuckling. “I’ll be in charge of the salmon barbecue competitions.” A professional fish fillet contest, his idea to highlight the hard-working processors, earned BSI a seafood-marketing excellence award from an industry publication.

At a time when a former CEO could be expected to spend more time golfing, boating, and relaxing, Bornstein remains “pretty active” in his business and the community. “I’m not finished yet.”

Longtime friend and seafood industry colleague Debbie Granger said Jay “just cranks out ideas.” She called him “the very definition of an entrepreneur – not afraid to take risks.” How BSI grew from a Depression-era purveyor of ground fish to one of the West Coast’s leading seafood suppliers is a fish-centric tale of grit, risk, and opportunity.

WHATCOMBUSINESSALLIANCE.COM | 23

LIFETIME ACHIEVEMENT AWARD: JAY BORNSTEIN, BORNSTEIN SEAFOODS

(l. to r.) Colin, Kyle, and Jay Bornstein with Bellingham Technical College President Patty McKeown at the Bornstein Hatchery in downtown Bellingham. (Photo courtesy of Bornstein Seafoods)

“There’s no such thing as failure,” Bornstein said. “We have a perishable product, and you just do what you have to do. When something happens, you need to improvise and make it work.” And work it did.

THE FAMILY BUSINESS: FISH Bornstein grew up in Bellingham and in the family business. BSI acquires, processes, and sells seafood. His father, Myer A. Bornstein, started the company in 1934 with a stall in the Home Market in Bellingham. He incorporated in 1940 and moved into a fish receiving plant on the waterfront between Bellingham downtown and Fairhaven – where the Chrysalis Inn & Spa now stands.

Jay (Myer J.) Bornstein worked summers at the Bellingham Fish Company (BSI purchased it in 1958) as a box maker and general 24 | BUSINESSPULSE.COM

clean-up helper. He spent a few summers fishing and worked as a cook on a boat in Kodiak, Alaska.

“I grew up on a trawler,” he said.

“Living in Bellingham was very productive for high school kids. You could earn $5,000 to $10,000 in the summer.”

The military draft cut short Bornstein’s education at Western Washington State College.

Following the death of his only brother in Vietnam, he joined his family’s business. “My dad never asked me to come in,” he said. But the seafood business was in his DNA. Jay’s hands-on experience at BSI included working with the salmonbutchering crew, and becoming fillet crew foreman, and then plant foreman. He moved into corporate roles as a union negotiator, and as a lead on government affairs and regulatory compliance. He added

shrimp and crab processing to the company’s seafood offerings.

LEADERSHIP ROLE IN THE COMPANY AND THE INDUSTRY In 1980 Jay became president of BSI, determined to expand and to innovate. “I participated in the

“I really enjoy the creation and challenge of how to do it better….I could figure out how to get one percent more out of a product. I was good at that.”

— Jay Bornstein

2016 LIFETIME ACHIEVEMENT AWARD WINNER JAY BORNSTEIN, CHAIRMAN OF THE BOARD BORNSTEIN SEAFOODS

Join us in congratulating Jay for more than 30 years of positive economic impact in the Whatcom business community.

M A G A Z I N E

LIFETIME ACHIEVEMENT AWARD: JAY BORNSTEIN, BORNSTEIN SEAFOODS (Above) the production line keeps product moving constantly in the Bornstein processing plant. (Center) Drying racks of premium salmon highlight the long list of consumer fish varieties that the company sells worldwide. (Below) Jay Bornstein displays a pallet of filets about to go into distribution.

(Photos by Patrick Downing)

transition from an old-time business to now. A ton of older guys accepted me and took care of the business, pre-computers…the end of an era,” Bornstein said. “And by the mid-‘80s, it was a new era with the new speed of business. I liked being part of both eras.”

To help keep one of Bellingham’s “Three-F” legacy industries sustainable (along with farming and forestry) Bornstein immersed himself in various organizations. Granger said, “At a very young age Jay saw that taking a role in the resource management aspect, including politics and advocacy efforts, was essential.”

Bornstein’s participation spanned the Northwest Fisheries Association; U.S. representative to bilateral negotiations with Canada on fishing boundaries, minerals, and reciprocity; the Ground Fish Advisory Panel with the Pacific Marine Fishery Council, and chair of a select committee of the National Fisheries Institute (NFI) that selected a federal agency for seafood inspection. He became president of NFI. While he was filling his plate with deep knowledge of the seafood resource and making his views known through trade groups, he also had his eye firmly on Bornstein Seafoods’ future. “We took in more products, more boats, more people,” he said. “It’s the same as anything: Find the resource and process it into a saleable form.”

Bornstein added new locations 26 | BUSINESSPULSE.COM

outside the Bellingham plant – Astoria, Newport, and Warrenton in Oregon, along with other sites in Washington, Oregon, and British Columbia that no longer remain in the BSI empire.

“We really invested in Newport,” he said. Its Astoria building, the first ground-fish processing plant built on the West Coast in over 20 years, was a $12.5 million project that contained another $6 million in equipment.

“For a strong future, you make another commitment. You stretch out.”

As he got to know other processors around the country, Bornstein sourced innovative fish-processing techniques, adding skinning machines and semi-automated processing methods. “One of the many fascinating aspects of this business is the constant change and innovation of fishing, processing, packaging, food technology, and evolving markets,” he said. “I really enjoy the creation and challenge of how to do it better.

“I could figure out how to get 1 percent more out of a product. I was good at that.”

BUILDING ON RELATIONSHIPS Jay prizes the relationship that BSI has with independent fishers who supply seafood to BSI. “We don’t own a fleet of boats, and we don’t have contracts,” he said. “Our working relationship is with the fishermen, and they’re totally independent. They go where they want, and we get new ones all the time.

Those guys want a market and a delivery date, so they can unload their catch and start over again.

“I love the day when it’s like a vacuum cleaner: Sales come in, and we get more product going out.”

The ebb and flow of his business has not always been smooth.

In 1985, as BSI was readying for salmon processing, a fire destroyed the Bellingham plant. Ed Perry offered use of his San Juan Seafoods facility; BSI moved there and began

working again within 24 hours.

Astoria once shut down when a barge of gravel crashed into its plant, while another major fire hit the Bellingham location at the same time.

“When something happens, you need to improvise and work within our waterfront community to make it through,” Bornstein said. “There’s no option but to go forward.”

He also co-created other businesses, including Rainier Seafoods, Fresh Express, Bornstein Seafoods Canada, and Starlight One. “I could sniff out projects all over the place,” he said, “but I needed someone to organize the company.”

For about 17 years BSI was one of the major processors receiving trawl fish from Canadian boats until a new limited entry and quota system forced the company out. The greatest business challenge he faced: surviving drastic changes in the natural resourcebased industry that moved from barely managed to highly controlled with restricted access.

“We had grown from a local single fish processing plant in Bellingham to multi-seafood processing facilities spanning the West Coast,” Bornstein said.

“This was at the time of complete reorganization of the fishing industry where 90 percent of the companies operating in 1980 no longer existed.” He cited how the Magnuson Act in 1976 created the United States’ 200-mile economic zones, establishing fishery management councils to regulate all fisheries.

“Major changes occurred immediately,” he said. “We participated from the very beginning, and we are still active participants. We have adapted to change, which is referred to as survival. We are one of the very few companies that has grown in a time of extreme change in our industry.”

“We have adapted to change, which is referred to as survival. We are one of the very few companies that has grown in a time of extreme change in our industry.”

– Jay Bornstein

BUSINESS BOX SCORE Name: Bornstein Seafoods Inc. Founded: 1934 by Myer A. Bornstein; incorporated 1940 Employees: 80, Bellingham; 400 company-wide 2015 Sales: $75-$85 million CEO: Colin Bornstein Locations: Bellingham (processing/packing plant, custom smokehouse, custom processing and value-added products, and corporate headquarters); Astoria, Ore. (primary processing plant); Newport, Ore. (processing plant); Brookings, Ore. (seafood unloading station); Warrenton, Ore. (Deep Sea Retail Store) The Bornstein Family: Jay: Chairman of the Board; Sharyn (married to Jay 50 years); Kyle: Eldest son, CEO, Eco Pacific Seafood in Bellingham; Colin, and Andrew, Manager, BSI/ Astoria.

WHATCOMBUSINESSALLIANCE.COM | 27

LIFETIME ACHIEVEMENT AWARD: JAY BORNSTEIN, BORNSTEIN SEAFOODS TIDES OF CHANGE: THE THIRD GENERATION

TAKING A PAGE FROM PRES. TEDDY One way to understand Jay Bornstein better lies within the quote he carries around with him: an excerpt from 26th President Theodore Roosevelt from the renowned speech “Citizenship in a Republic,” delivered in 1910. The excerpt is entitled “The Man in the Arena.” “….Credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly, who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievements, and who, at the worst, if he fails, at least fails while daring greatly…his place shall never be with those cold and timid souls who neither know victory nor defeat.”

Like Teddy Roosevelt’s charge to “Get Action!

Do Things!” Jay Bornstein has a boatload of accomplishments gained with the hunger to make things happen and the determination to keep West Coast fisheries sustainable.

— Susan G. Cole 28 | BUSINESSPULSE.COM

In 2006 Bornstein hired a professional family-business consultant to develop a process for going forward with the next generation, his three sons.

“As part of my continuing business education, I realized if this company was to evolve from a single entrepreneur enterprise into a professionally-managed company, the best chance would be to accomplish two goals at once,” he said, citing transition to the next generation, and professional management. “Neither goal was assumed as an automatic success or conclusion,” he said.

After four years he successfully shifted company ownership to his three sons. His middle son, Colin, became president. Jay remained as chairman of the board, consultant, and mentor. They added a board of advisors from outside the company. “Jay had the foresight to form an external board to help with the transition,” said one of those board members, Glenn Butler.

“That’s not an easy decision – to share governance after so many years as the primary decision-maker. The family members still have ‘family council’ meetings that transcend the (core) business aspects of the company, and seek to hear all voices surrounding the more personal side of business.”

D.C. Morse, another board member, said, “Observing the transition of ownership, and to see the growth in his sons’ capabilities as Jay has mentored them, has been as rewarding as it is impressive.”

As for Jay: “The symbiotic business will be outside my scope. I help tutor them (his sons). We have a strong foundation with independent thinkers, and our opportunity is growing.”

GIVING BACK WITH JOBS AND COMMUNITY SUPPORT Bornstein has found time through the years of industry involvement to coach youth sports, and to join Rotary, the Nooksack Salmon Enhancement Association (NSEA), the Bellingham Yacht Club, and, most recently, the Working Waterfront Coalition formed to study long-range developments for the local waterfront.

He said that when BSI controller Russ Melhart helped manage BSI and mentor him, that freed him to get involved in the community. He recalled cutting and filleting extra fish in 2-pound packages for the Bellingham Food Bank.

A few years ago BSI stepped up in a big way by donating $100,000 to the Bellingham Technical College for its new fisheries and hatchery building, named The Bornstein Hatchery in his honor. BSI is a founding member of the Ocean Trust, and has funded a National Fisheries Institute scholarship. Bornstein's philanthropy centers on education and on restoration of the fisheries.

“Jay and his business have long been an integral part of Bellingham’s economy,” D.C. Morse said. “The business provides many good jobs, plus Jay has been involved in Bellingham civic affairs for many years.”

Kevin Weatherill, CEO of The Markets, was a senior manager at BSI for over four years, and he said, “BSI is an important part of our diverse business community in that the company provides good-paying jobs with benefits to their team members, as well as being a competitive buyer for our independent local fishermen and harvesters.”

The Port of Bellingham has played a strong supporting role in the BSI history. Bornstein said, “We moved onto a site on Hilton Avenue in 1950 and asked the Port for help in buying the land and building. They did. We paid the first installment of the bond issue in 1952 and the last one 25 years later. We have had long-term lease agreements ever since.

BSI products: The what, where, how, and how much BSI acquires, processes, and sells fish. Familiar products include Dungeness crab, shrimp, tuna, salmon, sardines and cod.

Through a network of fishermen, Bornstein sources its seafood from San Francisco north to British Columbia.

The business is almost totally wholesale. The company sells a small portion of value-added products, like smoked salmon and artisan canned tuna, online or through its Warrenton Deep Sea retail outlet.

Working through distributors (Northern Fish and Ocean Beauty), BSI sells products nationally to supermarket giants Whole Foods, Costco, and Kroger, among others. Other product lines from BSI include both fresh direct and frozen retail warehouse items, branded frozen foods, bulk exports, and finished exports. It’s a global market: about 70 percent of Bornstein Seafood products ship overseas, including Japan, China, and Europe. Frozen export sales account for the majority of BSI’s business.

“We have transparency in a chain of custody on our products,” Bornstein pointed out. “It’s all dated and coded so our customers can have confidence that our product is fresh.” Sanitation records are essential, since “the tolerance for listeria in shrimp, for example, is zero,” he said. “We work with administrative and regu-

latory agencies like the Food and Drug Administration, and the Environmental Protection Agency, both huge in the seafood business.”

Before trucking product to distribution points, processing takes place at BSI’s plants in Bellingham or the Oregon sites in Newport, or Astoria. “We have 50 species of seafood on the West Coast, and they all are hand-filleted. We still don’t have machines that fillet all species,” Bornstein said. “I worked on smoothing out both ends of the processing lines, and found technology in Canada, the U.S., and Denmark to get more efficiency out of the lines.

"The multi-species trawl fishery brings several species in for processing at one time. To achieve a fresh market-finished product for all species requires the human ability to fillet or butcher interchangeably. It’s a diminishing skill set worldwide, but BSI has some of the best.”

The future appears bright. “Our trajectory is up,” Bornstein said. “We’re not small and we don’t sell millions of pounds of product. We’re a ‘tweener, a very respected medium-size participant in the industry. In the evolution of the West Coast seafood industry since 1960, only 10 percent of those businesses are still here.

Of those 10 percent, we’re landing at number two.”

WHATCOMBUSINESSALLIANCE.COM | 29

LIFETIME ACHIEVEMENT AWARD: JAY BORNSTEIN, BORNSTEIN SEAFOODS “Whatcom County has a long history of a working waterfront, and we are a proud member. This community of water-related businesses and interested citizens has supported our company. From the hundreds of folks who have had summer jobs growing up, or those who worked sometime in their lives for any of the waterfront jobs – people here understand the seasonal natural resource business.”

FISHING FOR TODAY AND THE FUTURE “The fishermen own the resource now. The run of each species of fish is allocated for an allowable catch.

It’s all full retention (no throwback), and governmentobserved,” Bornstein said. “So it’s not true (as some say) that the fish resource is going away. We feel secure we’ll have a business in the future. The fish are protected and managed very well in the U.S.”

"There's no such thing as failure.

When something happens, you need to improvise and make it work."

– Jay Bornstein

He’s always looking to the next horizon.

“Generational transfer is one of our biggest concerns.

How do we get the next generation of fishermen?”

Sustainability to BSI means purchasing based upon harvest methods that meet strict management guidelines, with equitable sharing for all users and maintenance of the ecosystem for future generations in the Pacific Northwest. The company partners with the Marine Stewardship Council to help promote sustainable fishing practices and seafood traceability. All BSI processing facilities are certified by the Council.

“We need to support the maritime sector,” Bornstein said. “The fisherman helps you out, and the outcome is okay.”

A CERTAIN STYLE OF MANAGEMENT The Bornstein Seafoods logo, a symbol of excellence designed by Jay Bornstein, looks like a stylized fish with four curved lines: • Quality • Productivity • Professionalism • Teamwork.

Each explains his philosophy. First is quality in people, products, processes, and property. Productivity yields results, benefits, and profits for fishermen, employees, company, vendors, and customers.

Professionalism comes into play through actions and ideals in behavior and attitude, adhering to the principles of noble values and building confidence from and 30 | BUSINESSPULSE.COM

in actions. Finally, teamwork is the connective fabric of actions, and the sum of parts working together as a whole.

“My big transition (as CEO), he said, “was to move us to a professionally-managed business,” he said. “Now when we want to change, it’s all planned out.”

Kevin Weatherill thought Bornstein was a democratic leader. “He involves more people than usual in problem solving and decision making,” Weatherill said, “which makes for a rewarding work environment. He’s very supportive of those he works with. He values longterm relationships that pay off for everyone. And, he approaches challenges with optimism and a confidence for figuring things out.”

Weatherill said that Bornstein “…has an entrepreneurial spirit like no other person I have known.

Seafood processing can be brutally tough. You have to bring a high-quality, highly-perishable product to market while subject to the whims of nature. You have to react quickly, navigate a complex supply chain, handle commodity-driven pricing pressure, and stay on the right side of quite a few regulatory compliance agencies.

“By innovating and taking risks, Jay has diversified and grown Bornstein Seafoods despite an unforgiving business environment.”

Glenn Butler said, “He is particularly adept at balancing short-term needs with a long-term perspective.

He manages to learn from the past and live in the present all while building for the future. This skill has allowed the company to navigate the significant swings that have happened in the seafood processing business.

“He is particularly good at staying out of the weeds and letting the current management run the operations, while still providing the excellent advice of someone who has seen many cycles in this diverse and complicated industry.”

From D.C. Morse: “Jay’s stature in the industry is much greater than the size of his business might indicate. He and his business always have had high respect from competitors, most of whom are much larger than Bornstein Seafoods. He is highly respected by his employees and has rightfully earned their trust. The same is true of the fishing fleet.”

And Jay's greatest business achievement? A balanced trifecta in personal, business, and family relations, he said. “Personal includes dealing with employees, union, vendors, technology, and customers. Business includes industry peer groups, government, financial, and other.

Family includes raising the kids, active sport club participation(s), group vacations, and – most of all – an understanding, supportive, and partner wife.”

An obvious question for Jay Bornstein: What is your favorite seafood?

“Any, having plenty to harvest, a good price to the fisherman, good production tools, great market, and of course a gross margin everyone enjoys.”

Spoken like a savvy business person.

Our sincere congratulations and appreciation to all of the 2016 finalists.

SMALL BUSINESS OF THE YEAR Comphy Company Data Link West Lynden Sheet Metal Signs Plus

30th

BUSINESS PERSON OF THE YEAR Dale Zender, Peacehealth Lynne Henifin, Henifin Construction Don Fischer, Lynden Manor Ron Buchinski, Lighthouse Mission

STARTUP BUSINESS OF THE YEAR Aslan Brewing Capstone Physical Therapy MCUSA Consulting

Annual

Business Person of the Year

M A G A Z I N E

STARTUP BUSINESS OF THE YEAR: ASLAN BREWING COMPANY

Pursuing perfection in a brew

pushes Aslan into fast-forward growth

By Mike McKenzie

T

hree autumns back, a foursome of fellas, good friends each to all (two of them brothers), quit their productive, full-time jobs to pursue a vision. Their website describes that vision as “in pursuit of the perfect beer….”

The founders centered their vision on craft beer with a twist unknown in any other microbrew32 | BUSINESSPULSE.COM

ery around: 100% USDA Certified Organic.

So Frank Trosset, Pat Haynes, and Jack Lamb formed Aslan Brewing Company. First they found an old warehouse and set up some equipment, and gathered certifiable ingredients. They tinkered through several months and beaucoup batches – about 130 types – until hitting upon some formulae they thought their pub house patrons would drink, come back for more and, over time, draw widespread acclaim.

About 18 months later, after long

hours of precise product development and build-out of their Forest Street location in the heart of downtown Bellingham, and with Boe Trossett joining the team, they opened for business at the first bloom of Spring 2014.

And wow!

From that humble small-staff beginning through 2015, Aslan Brewing roughly doubled its growth. With just 15-barrel capacity, the Aslan team produced 840 barrels of beer in the last 8 ½ months of 2014. During 2015 they produced 2,300 barrels.

Barrels of fun come pouring out of Aslan Brewing Company in Bellingham for co-owners (l. to r.) CEO Jack Lamb, Brewmaster Frank Trosset, Director of Sales and Distribution Boe Trosset, and GM Pat Haynes. Oh, and at the bottom middle – Head of Security Lexi.

(Photo courtesy of Aslan Brewing Company)

Including their full-service restaurant and taproom on the premises and wholesale accounts their gross sales rose to $2.65 million last year – qualifying Aslan Brewery, indeed, as an upstart startup.

They now operate with 25 fulltime employees turning out a wide variety of original-recipe beers, ales, and stouts – six labels that they call Flagship (year-round) and many seasonal – and an eclectic food menu they refer to as “local and seasonal world street cuisine” (yam tacos, made-in-house sauerkraut, and much more).

“We wanted to make great beer sustainably and create a community hub for the city of Bellingham and the Pacific Northwest,” Jack Lamb said. He serves as CEO. “We had to quit our jobs and focus all of our energies in order to make this happen. It was all or nothing.”

The wholesale beer markets extend to Whatcom, Skagit, Island, Snohomish, and King counties.

Soon, Aslan will begin distributing throughout the state of Washington and into Vancouver, B.C. The owners built community mission into their business model.

They donate about 8 percent of profits to local organizations. “If you put enough energy into bolstering the community in which you do business,” Lamb said, “your company will have a much greater chance of success.”

He described the company goals of making award-winning, worldclass beer, giving back to the community, eventually distributing throughout the Pacific Northwest, “…and have fun doin’ it.”

All with that unique environmental twist they rallied around at the outset – using low-impact practices. Lamb said, “As we grow and our impact on the world becomes inevitably larger, we will continue to search for ways to subsidize, or completely eliminate, the footprints we leave behind.

The originating trio left steady career work in construction, web developing, and restaurant management. “Looking back,” Lamb said,

“one can see how experience in these fields contributed to Aslan's successes.”

Aslan Brewery chose in Bellingham a recognized hot spot for microbrewed craft beer, and Lamb said that there’s no place they’d rather be to further those successes. “I live here,” he said (his mobile phone has a 206 area code).

“I operate business here. I smile here.”

Broadly, these days.

WHATCOMBUSINESSALLIANCE.COM | 33

STARTUP BUSINESS OF THE YEAR: CAPSTONE THERAPY

Capstone couple’s treatment services spread to 6 locations already – and more coming soon

by Mary Louise Van Dyke

G

reg and Jeannett Penner followed a dream of working together in a business enterprise.

Each had experience in both business and the medical field. Jeannett holds a Doctor of Physical Therapy degree (DPT). After looking at several options in which to team up, they founded Capstone Physical Therapy in Lynden three years ago.

“The idea of growing a business

34 | BUSINESSPULSE.COM

together where we could both use our individual talents and passions was appealing,” Greg Penner said.

And already they’ve grown sixfold in locations and lived the dream.

Their other four facilities are in Ferndale, Lynden, and Blaine.

Capstone, offering acrossthe-board therapeutic services, evolved dramatically from that single Lynden-based clinic offering physical therapy into five Whatcom County locations providing a variety of therapeutic services. Greg Penner, the CEO, reported that the company grossed close to $2 million in 2015, and now employs 29 full-time employees, 8 part-time employees, and 3 contract workers.

Their customer base has risen remarkably from 2,305 patient visits in their startup year to 27,085 last year. Greg Penner said they project a 20 percent continued increase this year. The growth continues with Capstone's newest location coming soon – a 10,000-square-foot facility on Sequoia Drive in Bellingham.

“Our mission is to provide the best patient care and customer service available, with a commitment to both culture and community,” Greg Penner said.

Therapists and administration staff created the Capstone Physical Therapy culture in which the team is valued jointly, and team members value each other. Commitment to

Jeannett and Greg Penner have increased patient care more than 10 times inside of three years.

(Photo by Katie Scott)

community service comes from staff who live in Whatcom County and from giving back through local events, projects, and organizations.

A privately- and locally-owned business starting up on the owners’ seed funding, the Penners planned to develop an effective working model and expand around the county to offer patients easier access to services. Capstone has fulfilled that model.

Services range widely: treatment of sports injuries, post-surgical rehab, orthopedics, hand therapy, custom splints, custom orthotics, womens' health, a balance program, work conditioning, and work hardening. All of the therapists commit to obtaining a board-certified specialty and to ongoing continued education and training. “We believe our patients must receive not only

Expanding to its sixth location this month, Capstone Physical Therapy had a patient base of 27,000 and topped $2 million last year, and has created 40 jobs. Next, the first Return to Work clinic in Whatcom County, and a sponsored pediatric program for youths with disabilities. the best medical care, but also the best customer service,” Greg Penner said.

Last year Capstone Physical Therapy opened its fifth location at Barkley Village in Bellingham. The company is warming up its muscles for the next challenges. This month the Capstone Return to Work

and the Capstone Kids (pediatric nonprofit) clinics open at the new Sequoia Drive location.

Greg Penner said the Return to Work clinic is the first of its kind in Whatcom County with a mission of helping injured workers through work conditioning, work hardening, functional capacity evaluations, and pre-employment assessments. He said that model offers a dual advantage of helping injured workers get back to work quicker and lowering employers' labor and industries (L&I) compensation costs.

Penner seeks out community partners to help sponsor youths with disabilities and impairments.

“We're really hoping the pediatric clinic will be supported by the community,” he said. “The need is bigger than one company can do.”

On the horizon the Penners foresee expanding with Capstone Physical Therapy clinics in other counties in Washington, and eventually to other states.

WHATCOMBUSINESSALLIANCE.COM | 35

STARTUP BUSINESS OF THE YEAR: MCUSA CONSULTING

MCUSA lends a helping hand

to Medicare health benefits providers

by Mary Louise Van Dyke

M

CUSA Consulting in Bellingham identified a unique niche market in a hot-topic sector (Medicare) that became an immediate hit.

The company’s mission calls for helping healthcare providers reach out to Medicare beneficiaries while staying compliant with government regulations – and ultimately preserving all important doctor and hospital relationships with patients.

“One of our biggest challenges, 36 | BUSINESSPULSE.COM

because no one else is doing what we do, is we help the hospitals and doctors communicate with their Medicare patients,” Kerri Lenderman said. She’s one of two co-founders, along with Paul Gauthier, and she serves locally as the managing partner.

Lenderman and Paul Gauthier launched in 2013, putting together their backgrounds in the health insurance industry. Gauthier also has experience in hospital administration. MCUSA – with the MC standing for Medicare and operating nationally as a sister company

to MedicareCompareUSA – works largely by telephone with a staff of seven in Bellingham and two workers outside of Whatcom County.

The employees design communication programs, and develop turnkey, targeted-marketing campaigns that specialize in people aging into Medicare benefits. MCUSA also provides data analytics to healthcare providers. The services grossed more than $200,000 in 2015.

These organizations “are starting to realize how our influence can really help them fine-tune their Medicare strategy and communicat-

Co-Owner Kerri Linderman said consultation with healthcare providers helps “fine tune” their interaction with customers in the complicated world of Medicare benefits.

(Photo by Patrick Downing)

ing with their Medicare patients,” Lenderman said, describing how healthcare providers need a business partner who protects the patient/provider relationship. “We help doctors and hospitals communicate what insurance plans they accept and do not accept.”

Both the MCUSA Consulting and MedicareCompare grew out of the rapidly-changing healthcare industry by serving Medicare patients within a system where the pay providers received, but didn't cover the operating costs of a new Medicare patient.

Medicare federal and state regulations prohibit healthcare providers from advising or steering patients

toward insurance. In the process Lenderman and Gauthier discovered that many providers need help with fine-tuning their Medicare strategies. “Because insurance agencies are highly regulated and limited in the types of services offered, we started MCUSA Consulting to give strategic support to provider clients,” Lenderman said.

The company's markets align with their providers' service areas in western Washington; Austin and San Antonio, Texas; Chicago, and parts of Kansas, Oklahoma, Arkansas, Georgia, North Carolina, Florida, Michigan, and Missouri.

Lenderman predicted that the need for their services will continue to increase as healthcare providers and insurers “…cope to survive in an ever-limited resource of healthcare dollars…. MCUSA Consulting will serve as a bridge for patients and their healthcare providers wherever and whenever possible.”

“Because insurance agencies are highly regulated and limited in the types of services offered, we started MCUSA Consulting to give strategic support to provider clients.”

— Co-owner Kerri Lenderman

NEW AND SCRATCH & DENT OFFICE FURNITURE Sometimes the only thing that’s dented is the box!

OFFICE FURNITURE DIVISION

2012 King Street, Bellingham, WA (360) 734-4888 Mon-Fri 7:00 a.m. - 6:00 p.m. Sat 8 a.m. - 5:30 p.m.

Office chairs, desks, file cabinets, conference tables, fireproof cabinets, personal safes, white boards, shelving, racking, and much more.

Large inventory changes often. We deliver!

WHATCOMBUSINESSALLIANCE.COM | 37

SMALL BUSINESS OF THE YEAR: COMPHY

Putting extra

ahh-h-h in the spa:

Comphy Company creates luxurious linens for massage tables and world’s finest hotels and resorts

By Pam Bauthues

C

omphy Company has found a sweet spot.

They’re a leading provider of linens in the spa, hospitality, and retail markets, but they’ve upped the industry standards:

Products that meet the highest quality benchmarks, and without sacrificing low environmental impact.

With double-digit growth over the last 13 years, they’ve continued to build their core business while still expanding into new product development.

Founder Mia Richardson was a spa director with more than 20 years of experience. She began Comphy out of an industry need for massage linens that were both visually pleasing and environmentally friendly and pleasing to her most 38 | BUSINESSPULSE.COM

discerning clients. She spent years creating the most innovative and luxurious linens imaginable, yet still offering the durability, sustainability, design, and quality that the spa industry demands.

Comphy’s products provide an ideal green-linen solution, helping reduce environmental impact in two ways. One, the fabric is durable and lightweight, allowing for shorter drying cycles. Two, the product is wrinkle-free, so it requires no ironing after cleaning.

“We are the brand standard and we’re proud of our work with a growing clientele of four- and five-star resorts around the world, including Four Seasons, RitzCarlton, JW Marriot, Wynn, Encore, Westin, and more,” Richardson said.

Comphy started with two employees and has grown to a staff of 28 (all but two operate in Whatcom County). Seven of

these jobs were added in 2015 and Comphy continues to grow with the development of new product lines for hospitality, corporate and day spas, home, retail, and baby products.

Comphy launched three new product lines during the last year, as well as an upgraded e-commerce website featuring custom, more user-friendly experiences for spa, hotel, and home customers.

Comphy processes and ships retail orders off their website directly from their Ferndale manufacturing location.

“What once was a small B2B company with only a few products,” Richardson said, “is now an international business with hundreds of products that continues to expand product lines to meet customer demand.”

In 2015, Comphy received an ISPA Innovate Award by the International SPA Association,

Creating the ‘brand standard’ became Mia Richardson’s aim, and she’s hit the target squarely with her daughter, Jessica Carrington (far left), as director of sales.

(Photos courtesy of Comphy)

given to spa industry leaders with innovative and successful spa-related initiatives and products. Comphy also sponsored the 2015 Global Wellness Summit, an annual event that attracts international leaders and visionaries.

With deep Whatcom County roots, Comphy is a family business that aims to treat their employees like family, as well. Richardson’s daughter and son-in-law each hold director positions, and the company focuses on providing great benefits and well-being initiatives to their employees.

“Creating jobs and contributing to the economy in Whatcom County is dear to our hearts, as a majority of our employees were born and raised in this area,”

“Creating jobs and contributing to the economy in Whatcom County is dear to our hearts, as a majority of our employees were born and raised in this area. We work with local businesses to support our daily operations, and to form relationships with small businesses to support each other.”

— Mia Richardson, Owner, Comphy Company

Richardson said. “We work with local businesses to support our daily operations, and to form relationships with small businesses to support each other.”

Giving back to the community is one of Comphy’s core values. In 2015 they donated an estimated $85,000 worth of products to charities and people in need, primarily within Whatcom County.

This year the company is making wellness and sustainability high priorities within both their product lines and internally. They’re dedicated to products designed to enhance well-being with a low impact on the environment.

Richardson said, “Comphy is dedicated to continued fabric research and bringing quality and functional products to markets where applicable. We hope to continue to provide jobs for those in the Whatcom County community, and to maintain our family culture as we continue to expand.”

WHATCOMBUSINESSALLIANCE.COM | 39

SMALL BUSINESS OF THE YEAR: DATA-LINK WEST

The missing link:

Data-Link West provides high-end IT services centered on the local community

By Pam Bauthues

W

hen you picture a tech company creating complex IT solutions, you might not picture a two-person team working in a small local office. But that’s exactly what you get with DataLink West Inc.

Data-Link West is the poster child for large impact from a small team. With just two employees, they provide service to hundreds of customers and companies with services ranging from the smallest tech-hardware problems to large-scale IT solutions, all across Whatcom, Skagit, and Island Counties.

Founder and President Eric E. Johnson started the company in 40 | BUSINESSPULSE.COM

1998. His career path took root when he studied electronics at North Seattle Community College and at Western Washington University. To get through school, he spent his summers working in Alaska where he took a full-time position as storekeeper for a fishing company.

In that environment he made a connection with people from Morse Hardware in Bellingham, and soon after became their IT manager for seven years. Draper Valley Farms in Mount Vernon later hired him and he has worked with them for more than 20 years – the first seven as their full-time on staff IT manager, and on contract through his own business ever since.

Johnson said, “I wanted to be the boss, so I started Data-Link West Inc. in 1998…and the rest is history.”

Johnson wanted a company that provides honest, high quality service for his customers, regardless of their size. “We’re providing great service to all who ask. We make it right. If a PC is beyond fixing, we say so and do not charge to fix a dead horse.”

He’s joined in finding solutions by master technician Robert Loescher, and Johnson’s son, Scott, works part-time. Data-Link West serves regional clientele, including businesses as diverse as The Inn at Lynden and the Teamsters Local 231.

Beyond their computer and network services, they’ve become immersed in the community at a deep level. Johnson is known for his generous donations to communityservice organizations and events and participating in local organizations that give back.

Eric E. Johnson stands at the counter of his shop in Bellingham that serves a multi-county area with tech solutions by a lean two-person operation. He steadfastly ties business to community giveback. (Photo by Patrick Downing)

Data-Link West’s work has expanded to such projects as compiling the results for the Junior Ski to Sea Race and offering IT assistance to Kiwanis. “We help with community projects and use our business to promote the Whatcom County community and its many assets,” Johnson said.

Data-Link West’s community service impact has become a wellestablished cornerstone of their business, and they plan to continue a high level of involvement as they continue to grow. While remaining small and with steady success, Johnson’s said his goals for the company’s future are simple: “We want to continue being a great little company serving computers in the Northwest area.”

There has never been a better time to buy local.

Personal Injury Workers’ Compensation Social Security Disability/SSI 1402 F Street | PO Box 668 Bellingham WA, 98227-0668

Attorneys

Kip Wayerski Gerry Zmolek

360.676.1448 800.865.7921 F 360.676.1525

Personal Injury Workers’ Compensation Social Security Disability/SSI 1402 F Street | PO Box 668 | Bellingham WA, 98227-0668

1402 F Street | PO Box 668 | Bellingham WA, 98227-0668 360.676.1448 | 800.865.7921 | F 360.676.1525

wayerskizmolek.com

A professional limited liability company

By doing so, you will get the help you needbecause we care.

We take pride in knowing your business so you get the right stuff the first time!

wayerskizmolek.com

Located in the historic McCue House (Built in 1884)

wayerskizmolek.com A Professional Limited Liability Company

Personal Injury Workers’ Compensation Social Security Disability/SSI 1402 F Street | PO Box 668 | Bellingham, WA 98227-0668

Located in the historic McCue House (Built in 1884)

1402 F Street | PO Box 668 Bellingham WA, 98227-0668

Located in the historic McCue House (Built in 1884) A Professional Limited Liability Company

Personal Injury Workers’ Compensation Social Security Disability/SSI

Practice devoted exclusively to Personal Injury, Workers’ Compensation, and Social Security/SSI claims.

PO Box 668 Bellingham, WA 98227-0600

We benefit the community too, with our taxes, paying our staff good wages and donations to local charities. photo credit to Business Pulse Magazine, Fall2015-Alejandra Maria Photography: facebook.com/alejandramariaphoto

360-738-4931

| service@printcopyfactory.com | 4055 irongate rd | bellingham

|

PrintCopyFactory.com WHATCOMBUSINESSALLIANCE.COM | 41

SMALL BUSINESS OF THE YEAR: LYNDEN SHEET METAL

It’s all in the family:

Lynden Sheet Metal surging in an upward spiral

By Dave Brumbaugh

D

ealing with the usual pressures of running a business is hard enough: profitability, employees, taxes, regulations, etc. When you add issues that come with taking over a family business, those pressures can feel overwhelming.

42 | BUSINESSPULSE.COM

But Cory and Bobbi Kreider have not just survived in a family business, but thrived as co-owners of Lynden Sheet Metal. Its gross sales under the Kreiders the last five years have increased by 185 percent to approximately $6.5 million in 2015.

Originally an HVAC company (heating, ventilation, and air conditioning), Lynden Sheet Metal has added plumbing and commercial

refrigeration departments in recent years. The Kreiders can track family ties back to the launch of the business n 1940, but most closely to Bobbi’s parents, Bob and Rose Crabtree, owners for 34 years (19772011).

The Kreiders already were involved in the business before purchasing it in 2011. Cory worked his way up through the heating and sheet-metal departments since 1990

Cory and Bobbi Kreider approach 200 percent growth in the five years since buying their company from her parents.

Lynden Sheet Metal made the Top 100 of privately-owned Whatcom businesses last year with $6.5 million in sales and 39 employees.

(Photo by Katie Scott)

and Bobbi had handled business finances and the service department since 1996. But now the buck stops with them and they’ve been up to the challenge.

“I think our proudest achievement over these last five years is twofold,” Bobbi Kreider said. “First have been the improvements we have made in efficiency to allow us to almost double our output with only a 20 percent increase in personnel (to 39 full-time employees).

Our industry requires skilled labor, and skilled labor in the trades is extremely difficult to find.”

She stated that to grow the company, they had to find a way to give personnel the tools to produce more. By adding technology and streamlining processes, Lynden Sheet Metal has maximized the time that workers spend producing in the field and minimized the time spent on paperwork, scheduling, and bidding.

“Second,” Bobbi Kreider said, “was creating a first-class team of employees. In today’s world, job moving and hopping is prevalent.

We are proud to have guys that started as clean-up kids when they were 14 and are now heading divisions.” She said that one-third of their employees has more than 10 years with the company. “Without a good crew, none of the growth would have been possible.”

Growth is coming from both the commercial and residential sectors. Projects so far early this year include Ferndale Farmstead Creamery (a new cheese plant);

the heating in Spring Vista, Bellingham’s first solar community (46 duplexes); and the heating in 21 storage condominiums in Ferndale.

But growth hasn’t come at the expense of giving back to the community. Lynden Sheet Metal supports the work of New Generations Ministries in Haiti; sponsors numerous local charities, and contributes to local schools, teams, Future Farmers of America chapters, and 4-H clubs.

While the future looks bright, it includes challenges beyond just those posed by competitors.

“Some municipalities and regulations in Whatcom County have made it hard and costly to do business here and some things we see on the horizon are downright frightening,” Bobbi Kreider said.

“However, we have been part of the Whatcom County landscape for 75 years and we plan on being part of it for the next 75.”

MEETINGS DONE RIGHT

Meet in style at Four Points Bellingham. Featuring 11,000 square feet of flexible event space, on-site catering, fast & free WiFi and more. When day is done, guests can relax at Poppe’s 360 Neighborhood Pub or take a dip in our indoor pool. Meeting packages start at $50 per person.

Contact Brian Smith at 360 392 6547 or email brian.smith@fourpointsbellingham.com

Four Points Bellingham Hotel & Conference Center 714 LAKEWAY DRIVE, BELLINGHAM, WA 98229 FOURPOINTSBELLINGHAM.COM

©2016 Starwood Hotels & Resorts Worldwide, Inc. All Rights Reserved. Preferred Guest, SPG, Four Points and their logos are the trademarks of Starwood Hotels & Resorts Worldwide, Inc., or its affiliates.

WHATCOMBUSINESSALLIANCE.COM | 43

SMALL BUSINESS OF THE YEAR: SIGNS PLUS

Doubling space, technology, and the cloud, plus dedicated staff boosts Signs Plus Inc.

By Dave Brumbaugh

L

ast year’s main project was a familiar one for the crew of Signs Plus Inc. in Bellingham: convert to a new brand all of the interior signage and décor, plus all of the exterior signage of a supermarket about 40,00060,000 square feet in size.

That size of remodeling project typically would take Signs Plus 4-6 weeks from production to installation to complete – just one store.

44 | BUSINESSPULSE.COM

This project had a major difference, though: Signs Plus was asked to convert 23 stores in Washington and Oregon that Haggen Inc. had recently acquired, and to finish all of them within six months.

“We effectively did almost three years’ worth of work in a six-month period,” Jim Sutterfield said. He is president of Signs Plus, and a coowner with CEO Dale Gravning.

“And we completed every location on time.”

However, that isn’t what made Sutterfield most proud of his company.

“Our biggest achievement throughout that six-month period

in 2015 was our ability to service our entire client base,” he said.

“Through very thorough planning, our cloud-based project management software, and the best and most dedicated employees in the industry, we accomplished what seemed to be the impossible.

“That has given our company, and many new clients, a huge boost in confidence in the abilities of Signs Plus to take on such a largescale project.”

After achieving annual sales growth of 5-10 percent in recent years, Signs Plus soared with 30 percent leap in 2015 because of improved efficiency and capacity,

The ownership partners of (l. to r.)

CEO Dale Gravning, Jamie Sutterfield, and President Jim Sutterfield and their staff completed a ‘miracle’ project with Haggen’s expansion last year, and Signs Plus is on a 30 percent annual growth track. (Photo by Patrick Downing)

according to Sutterfield. “We have invested heavily in automated technology since 2013, reducing labor costs and making us competitive with the larger regional and national sign companies we find ourselves competing with.

“Many of our new clients who were purchasing signs out of state and having them shipped to Washington have now turned to us locally for much of their Pacific Northwest signage needs.”

Signs Plus also purchased a new production facility on Marine Drive in 2013 that provided nearly 20,000 square feet, double its previous Bellingham facility. The improvements continue with the recent acquisition of its first 3D printer.

Jim and Jamie Sutterfield founded Signs Plus in 1992, beginning as a small commercial shop creating banners, promotional signs, and vehicle lettering. They became partners with Jim’s parents, John and Betty Vargas, in 1994.

Four years later Signs Plus purchased an electrical manufacturing and installation company that opened the doors to a much larger market. Signs Plus now designs, manufactures, installs, and services a broad array of signage – electric, neon, direction, banners, murals, and more. One of their more fun projects that Sutterfield recalled was making all the signage that appeared on the sets of a movie, “Walking Tall,” (2004), a remake starring The Rock.

In 2005 John and Betty Vargas retired and Gravning, a Bellingham native, returned home to become a co-owner and CEO. With such

strong local ties, it’s no surprise that Signs Plus is active in the community, making in-kind donations and encouraging employees to serve as board members and event volunteers for not-for-profit organizations.

“We believe in supporting and giving back to our communities,” Sutterfield said, “and we have made the community an extension of the service we provide to our customers.”

Describing a project remodeling 23 Haggen stores that helped boost sales by 30 percent last year: “We effectively did almost three years’ worth of work in a six-month period. And we completed every location on time.”

— Co-owner/President Jim Sutterfield, Signs Plus

Serving local businesses since 1939 Offering services in • Commercial fueling • Shell lubricants (DPQA) • Industrial lubricants • Marine fuel • Bulk fuel deliveries • Spill control absorbants

2418 Alabama Street, Bellingham • 2801 Roeder Avenue, Bellingham

(360) 734-2201 (800) 401-2201 Visit us at yorkstonoil.com WHATCOMBUSINESSALLIANCE.COM | 45

BUSINESS PERSON OF THE YEAR: RON BUCHINSKI Serving round-the-clock every day, and budgeted 100 percent on private funding, Buchinski’s staff at Lighthouse Mission doled out about 2 million individual services in his 12 years there.

(Photo by Patrick Downing)

46 | BUSINESSPULSE.COM

Lighthouse Mission Services fit career clergyman Buchinski’s life mission to a ‘T’

By Dave Brumbaugh

I

f you think your business is challenging, consider what it’s like to operate one with these parameters:

“A faith-based extension of voluntary local contributors providing 24/7/365 free services to homeless and needy men, women, and children with the goal of seeing broken lives restored through four facilities and numerous programs.”

By the way, your clientele often is struggling with mental illness, drug addiction, and/or alcoholism, and you must generate revenue without offering anything tangible in return.

Lighthouse Mission Ministries of Bellingham, going strong for 93 years, accomplishes all of that exceedingly well under the leadership of Ron Buchinski, its executive director since 2004. Combining business acumen with his ministerial compassion, Buchinski has overseen 12 consecutive years of development growth with financial, program, quality control, educational, and board/staff.

Private donors are responsible for 100 percent of LMM’s general fund – it doesn’t receive any government funding – and the Mission Ministry has met its budgetary goals with surpluses each of the last 12 years.

Buchinski is quick to give credit to others, saying that LMM’s proudest achievement is “gaining the increased and valued trust and support of the region’s discretionary donors and peer agencies financially, in-kind, and through their time,

while meeting unique needs.”

In the fiscal year ending in June 2015, LMM served 99,605 meals, provided 53,510 nights of lodging, received 27,148 visits at its drop-in center, treated 436 with medical care through its partnership with Sea Mar Community Health Centers, and aided 429 with vision care through Haskell Eye Clinic Services. That’s 181,128 customer services, if you’re keeping score.

In one year. Times 12 years, and you can figure Buchinski’s staff has dealt with more than 2 million

Combining business acumen with his ministerial compassion, Buchinski has overseen 12 consecutive years of development growth. With all private funding, LMM has met its budgetary goals with surpluses each of his years.

individual services.

These achievements and more are accomplished with a staff of 22 full-time and 14 part-time employees, bolstered by 1,500 registered volunteers, within a budget of nearly $2 million, and partnering with at least 15 nonprofit organizations, Buchinski said, all with this philosophy at the core: “Serve others sacrificially, as you would be served, expecting nothing in return!”

Recent successes include:

•

Installation of a three-story, $250,000 elevator in LMM’s oldest facility, enabling the handicapped and those with infant strollers access to the dining room and showers.

• Launch of a child care center with paid staff members operating it.

• Constructing, furnishing, and staffing two new buildings and the almost-complete renovation of the two older buildings.

• Housing the Interfaith Coalition’s Severe Housing Shelter for men the past two winters.

Life hasn’t been a straight line to success for Buchinski. Married at age 20, he didn’t graduate from college until he was 32, but did so debt-free and while the family added three children. He didn’t commit to inner-city service until he was 35.

Even with the daunting responsibilities of Lighthouse Mission Ministries, Buchinski still finds time to serve as a volunteer chaplain for the funerals of veterans and to be involved with his church, the Bellingham Central Lions Club, Acme River of Life Food Bank, and the Christian Motorcycle Association.

With his mixture of faith, humbleness and a no-nonsense approach, he lists the following as positively shaping his life: “God, family, generous people, wise counsel, learning from mine and others’ mistakes, working hard and smart, and refusing to quit.”

WHATCOMBUSINESSALLIANCE.COM | 47

BUSINESS PERSON OF THE YEAR: DON FISHER A rare moment, this — catching Don Fisher sitting still at his desk. He sold the local Dairy Queen 14 years ago, and now as GM and administrator at Lynden Manor he oversees about 70 staff (50 fulltime) and 107 apartments for assistedliving residents. (Photo by Katie Scott)

48 | BUSINESSPULSE.COM

Don Fisher: 30-plus years of assisting seniors with comfortable quality of life

By Mary Louise Van Dyke

D

on Fisher may not have realized how deep his roots in Lynden would plunge when he and his family moved to the community 32 years ago, bringing a background of project management of nursing homes.

Today as general manager and administrator of Lynden Manor, Fisher and his staff offer a comfortable and scenic setting for senior age residents who struggle to continue living on their own. He’s been at it since 1995 when several community members approached him about opening an assisted living facility in Lynden.

It didn't take him long to make up his mind about becoming part of the project. “I became very involved in the community and felt that it needed a facility for the elderly beside the local skilled nursing home,” Fisher said.

Lynden Manor opened in July 1997 as a licensed, assisted-living residency, and today it employs about 50 full-time and 20 part-time staff. The location on Aaron Drive in Lynden, offers pastoral views of Mount Baker and the Nooksack River Valley. Residents of the manor's 107 apartments have access to restaurant-style dining, outings and activities, therapy, and nursing staff on duty around the clock.

Fisher is proud of the facility's

stable, low turnover rate, and credits the fact that the entire management team has 10 years or more at Lynden Manor. “We have maintained 100 percent occupancy in our dementia (special) care wing for the last several years,” he said. His previous work experience included 11 years of developing and constructing nursing homes while employed

“We dedicate ourselves to the loving service of people in a retirement setting by providing a caring, quality living environment operated under sound business practices.”

— Don Fisher, GM/Administrator, Lynden Manor

by the Careage Corporation based in Gig Habor. Those ties came full circle as he asked the corporation to get involved in the proposed creation of Lynden Manor. Fisher oversaw the project as the major shareholder and managing partner.

His other work experience included working with Voth

Brothers Construction as a project superintendent. As an entrepreneur and business owner, he built and then operated the Dairy Queen in Lynden for 18 years. He sold that business in April 2002, but still retains ownership of the building and improvements.

Amy Westerhof, the Manor's director of resident relations, credits Fisher with having a unique insight into seeing potential in people.

“Within his 32 years of being an entrepreneur, he has taken risks on many employees,” she said, “by hiring them perhaps without the proper education, but willing to train and teach them so they have an opportunity to better themselves in their livelihoods.”

Fisher buries himself in the community. For two years he has served as co-president of the Lynden Chamber of Commerce. Previously he was a member and president of Lynden's Mount Baker Rotary Club, in addition to serving on task forces and planning committees.

He also served as chairman of the Alzheimer Society of Washington's board of directors, and he received the Ken King Community Service Award in 2012 from the Alzheimer Society.

Offering loving service is central to Lynden Manor's philosophy of success, Fisher said. “We dedicate ourselves to the loving service of people in a retirement setting by providing a caring, quality living environment operated under sound business practices.”

WHATCOMBUSINESSALLIANCE.COM | 49

BUSINESS PERSON OF THE YEAR: LYNNE HENIFIN Juggling activities in four family business ventures – construction, safety signs, Henifin Plaza, and an investments enterprise – Lynne Henifin loves mentoring her adult children and other women in business. (Photo by Patrick Downing)

50 | BUSINESSPULSE.COM

Henifin ‘perseveres’ overseeing family of companies

By Mary Louise Van Dyke

S

econd generation entrepreneur Lynne Henifin relishes working at the hub of family-owned business ventures, and she said she hopes her adult children realize they're also capable of creating commercial enterprises that inspire and feed their passions.

Henifin and her husband, Jaime, are the co-owners of the Henifin Family of Companies. With Jaime’s parents’ construction company going strong, Lynne Henifin launched NW Safety Signs Inc. in 1992 after Jaime mentioned the idea of starting a sign and barricade company in Whatcom County.

Telling him, “Well, maybe someone else will do that…,” seemed logical at the time, she said. Having graduated in ’82 from Western Washington University, she already was working two jobs and raising three small children.

However, Henifin admitted, she was never a person to just have one thing going. “I decided to take on the challenge with little knowledge of the industry, or experience in running a small business,” she said.

The construction company was buying all their signs and barricades somewhere else, and that sparked the innovation to make those themselves. “And I love a challenge,” Lynne said.

Challenging it was. She launched

the business with an initial $20,000 investment and wore every hat from customer service to sign-making to equipment repair during the early years. In 1998 the couple took over the family construction business from his parents and renamed it Henifin Construction LLC. Today the Henifin companies grew to include real estate holding companies Henifin Investments LLC and Henifin Plaza (leased

“I’ve learned that failing is okay and the struggles we encounter are just as crucial as the successes.”

— Lynne Henifin, Co-Owner, the Henifin Family of Companies

buildings on the property along Hannegan Road where their business headquarters is located for all Henifin companies in Bellingham, on the edge of Irongate Distict).

There have been bumps along the way. Lynne Henifin views those as schooling. “I’ve learned that failing is okay and the struggles we encounter are just as crucial as the successes,” she said. She learned well; Henifin was named 2008 Professional Woman of the Year by a peer group, Whatcom Women in Business. (She later joined the group and became its president.)

The Henifins knew what to expect. Both Lynne and Jaime grew up with self-employed parents.

Henifin credits Jaime’s parents, Ron and Glenda Henifin, with giving them “a strong foundation and a 30-year established business that allowed us to transition into our own style of ownership.” Her mother and father ran a mail-order business named McCoy’s Recording that reproduced nostalgic, old radio shows of the early 1940s.

“Sadly, both my parents have passed, and they served as a wonderful example of how couples can successfully work together to build and grow a business,” Lynne Henifin said.

The combined number of employees in the Henifin companies ranges between 35-60, (both part- and full-time), depending on the construction season. “We now have the joy of guiding, training, and helping our adult children as the third generation to continue the family legacy,” she said.

The Henifin group is committed to supporting and volunteering for a variety of local nonprofits, particularly for local youth and people who are struggling out of no fault of their own, she said. The sign company provides services to local events such as the annual Ski to Sea Race, marathons, and bike races in Whatcom and Skagit counties.

Lynne Henifin said all areas of their businesses have grown from 15-25 percent over the last four years. She expects those trends to continue upward in 2016. However, she doesn't take success for granted.

“To be self-employed, one must be self-motivated, disciplined, know how to prioritize and above all,” she said, “persevere.”

WHATCOMBUSINESSALLIANCE.COM | 51

BUSINESS PERSON OF THE YEAR: DALE ZENDER

In his 33rd year with PeaceHealth, Dale Zender has expanded his role to preside over four major facilities that did $1 billion in gross revenue within the network in 2015 – Sedro Woolley, Friday Harbor, Alaska, and St. Joseph Medical Center in Bellingham where just last year over 2,000 newborns and 80,000 patients received services.

(Photo by Donny Rubenack) 52 | BUSINESSPULSE.COM

Zender family and PeaceHealth nuns have in common their 1890s roots

By Dave Brumbaugh

A

ppropriately, it would appear, the local head of PeaceHealth Medical Group, which has a 125-year history in Bellingham, has a family history just as long.

Dale Zender, president of hospital services for PeaceHealth’s Northwest region since July 2015, cites a family history that began with homesteading in this area in the 1890s; some members of his extended family are still in the logging business. PeaceHealth goes back to 1890, when two teenage nuns traveled from the East Coast to provide health care for miners, loggers, and fishermen, then opened the original St. Joseph Hospital in Fairhaven the following year.

Those nuns didn’t come here to make it rich, and Zender said that remains true for PeaceHealth. “As a not-for-profit organization we are in business to help every person in our community —regardless of their ability to pay — to stay healthy.

Our more than 2,700 employees in the Bellingham area come to work every day with this as their primary focus, and it is what drives every decision we make.”

And plenty of people rely on PeaceHealth. At just PeaceHealth St. Joseph Medical Center last year, more than 2,000 babies were born, 64,000 patients were served in the emergency department, and 16,000 were treated in the hospital. Zender also is responsible for PeaceHealth facilities in Alaska, Sedro-Woolley, and Friday Harbor.

Zender has a full history of his own at PeaceHealth; he started as a budget manager for St. Joseph Hospital in 1983. “I have been fortunate to have been professionally mentored by some amazing people who were committed to the PeaceHealth values of respect, collaboration, stewardship and social

“I have been professionally mentored by some amazing people committed to the PeaceHealth values of respect, collaboration, stewardship and social justice. Charged with leading a health care network with more than $1 billion in annual gross revenue, I rely on the wisdom and support of a strong team of executives, managers and staff.”

— Dale Zender, PeaceHealth Medical Group

justice,” Zender said. “… Today, charged with leading a health care network with more than $1 billion in annual gross revenue, I rely on the wisdom and support of a strong team of executives, managers and staff.”

Aided by Zender’s leadership, PeaceHealth’s recent accomplish-

ments in Whatcom County are impressive. They include: • Implementation in 2014 of a mechanical circulatory system program, the first of its kind north of Seattle, in the St. Joseph Medical Center’s heart center. By implanting a mechanical device – essentially a pump – doctors can improve a patient’s quality of life when no other option exists for heart repair.

• Opening of a 35,000-squarefoot integrated cancer center in 2012. The center combines all of the services a patient who is addressing a challenging disease requires – built into one art-filled facility with a single focus.

• Launch of Whatcom Hospice House in 2010 after a decade of visioning and fundraising. Whatcom Hospice Foundation, a program of PeaceHealth St. Joseph Medical Center, led development of the $6 million project, the region’s first hospice house to care for patients who are facing a terminal illness.

But Zender has no time to rest on those laurels. “One of our top priorities is the successful implementation of a new, $125 million electronic medical record system in the medical center on May 1 this year,” he said.

“This system, mandated by the federal government, will give our clinicians immediate access to patient information and data, which, among other things, can lead to better outcomes.”

WHATCOMBUSINESSALLIANCE.COM | 53

INDUSTRY REPORT: SEED POTATO FARMING

54 | BUSINESSPULSE.COM

INDUSTRY REPORT: SEED POTATO FARMING

N

ext time you hit McDonald’s or Five Guys for a burger and fries, think about your Whatcom County farmer. Or, next time you pick up a 5-pound bag of potatoes at your Costco, Walmart, or Safeway store, give a handful of Whatcom family farmers a thought.

Because, there’s a very good chance that the tasty French fry or baked potato in your oven started its journey right here in Whatcom County – even if you buy that fry or bag in Africa, South America, or California.

How did this little part of the world become known as the premier region for growing the highest-quality seed potatoes in the world? It’s a story of climate, innovation, commitment to family and life on the farm, and, most of all, good old-fashioned hard work.

First, what’s a seed potato, and how is it different from the spuds you buy in the store or get turned into 56 | BUSINESSPULSE.COM

fries? As the name suggests, a seed potato is used to grow the potatoes that farmers produce and that we eat. Seed potatoes are perfectly edible, but because they are grown in special, certified, and carefully-monitored regions, they can be sold to growers for their consumer potato crops.

Protecting against diseases that can destroy a crop and affect a whole growing region is one of the primary concerns of potato growers, and that’s why they can only use seed potatoes from specialty farmers who grow in certified regions.

HISTORY STARTS WITH EBE FARMS Oscar Ebe came from his native Germany to Whatcom County in 1919. With farming in his background he started growing potatoes in Custer. He was one of the early pioneers in seed potato farming and one of the founders of the Washington State Certified Seed Potato program. The Ebe farm continued with Oscar’s sons, Leonard and Aloys. Since Aloys died in 1999

The main three at one of the main three seed potato farm families in Whatcom County (l. to r.): Melissa Bedlington-Kleindel, her brother Scott Bedlington, and her husband Nate Kleindel.

Leonard continues active involvement in the now muchexpanded operation owned by his son, Greg.

While Oscar Ebe may have been the first seed potato farmer, the Hawley family’s farming roots go back to the turn of the century.

• R. T. Hawley built a chicken farm on the hill off Lakeway Drive in Bellingham, across from where Fred Meyer stands today. He also became the first manager of the Farmer’s Co-op in Bellingham.

• R. T.’s son, Myron, moved out to what was then known as “the sticks” near Wiser Lake, where his grandson, Roger Hawley, and Roger’s son Mike continue the seed potato business.

• Myron first grew commercial potatoes in 1932 and his son, Hugh, converted to seed potatoes around 1960.

From the original Ebe farm, the industry grew until at one point about 30 farmers were growing seed potatoes. But, in a story typical of most types of farming, economics forced consolidation. Farms either grew or withered away. Some potato farmers did grow and thrive, so that today four seed producers exist with most of the production in the hands of three third-generation family farmers: Greg Ebe, Scott Bedlington, his sister Melissa Bedlington-Kleindel and cousin Jeff Bedlington, and Roger Hawley. Jeff Bedlington farms on the original family acreage near Berthusen Park with his wife, Diana. Roger Hawley operates Hawley Farms with his wife, Vicki.

So the seed of the local industry that notches about $17 million in sales and generates nearly 80 million pounds of spuds a year can be traced to three farming pioneers: • Oscar Ebe, Myron Hawley, and Gordon Bedlington (grandfather of present-day farmers Scott, Melissa, and Jeff.)

The 80 million pounds produced locally does not fully tell the story. These potatoes are sold to growers in Africa, South America, and Canada, though most of the production goes to U.S. farmers in California and the Northwest states. Skagit County’s consumer potato growers provide a major customer base for Whatcom’s seed potatoes.

Those 80 million pounds of seed turn into about 330 million pounds of French fries, potato chips, and dehydrated potato products. Only 20 percent of potatoes get processed this way. The rest go into fresh-pack potatoes,

The chart shows the percentages of seed potatoes that are designated for different uses when they are sold to commercial growers who stock the market for French fries, potato chips, and sacked potatoes on the consumers’ tables.

Greg Ebe, president and CEO at Ebe Farms near Lynden, displays seed spuds in a basket. The seed potatoes get sorted for usage (French fries, chips, fresh pack for dinner, etc.).

WHATCOMBUSINESSALLIANCE.COM | 57

INDUSTRY REPORT: SEED POTATO FARMING

58 | BUSINESSPULSE.COM

Roger Hawley (right) took over growing seed potatoes from his father, Myron, descending from R.T. Hawley’s original chicken farm in the early 1900s. Roger’s son Mike (left) helps run the family farm near Wiser Lake “out in the sticks,” Roger said.

those you buy at your favorite store.

About 880 million pounds of potatoes are sold in fresh-pack grown from Whatcom seed, which equates to about 176 million five-pound bags in the grocery store.

That’s not small potatoes.

Whatcom County’s successful seed potato business is part science, great climate, part savvy business, and mostly hard farm work.

The science part lies in creating the best seed potatoes, starting in the tissue culture lab and nursery. Two farms have their own early-generation seed potato operations – NuGen and Pure Potato. By doing their own tissue cultures in their own labs, these growers can maintain exceptional levels of quality control, maintain the purity of successful varieties, and generate new varieties with favorable characteristics.

Those first generation plants grown in the farms’ nurseries generate the 75-80 million pounds of seed potatoes grown each year in the U.S. About 10 percent of that crop is reserved for the next generation of seed potatoes, with the rest sold to buyers around the West Coast and beyond.

VARIETIES KEEP MULTIPLYING Each farm grows a variety of potatoes. Scott Bedlington estimates they grow around 40 varieties these days, which is a big difference from when he started and they were growing eight varieties. “Reds, yellows, whites, russets, chippers, fingerlings, specialty purples,” he said.

“We grow about everything out there. We try to be diversified in all the markets in the industry,” Scott Bedlington said.

Jeff Bedlington with Cascade Farms, on the other hand, limits

the varieties and focuses on the types with maximum production.

The differences in varieties limits competition between the farmers for customers to some degree.

However, as Greg Ebe pointed out, the competition that does exist is friendly. “Each farm has quite a few varieties,” he said, “But we work together. The shortage in a variety of one farm can be made up by another. The strength of our area is that we all do a pretty good

job, which is why this area has such a strong reputation.”

Sales are conducted from harvest time in mid-to-late fall and into the winter, with much of the sales activity happening around a few potato industry conferences.

Farmers store their potatoes in the farms’ specialized storage facilities. After harvest the growers sort their potatoes by a combination of machine and hand sorting.

Storage depends on air flowing WHATCOMBUSINESSALLIANCE.COM | 59

INDUSTRY REPORT: SEED POTATO FARMING The greenhouse shelters the seeds of the planting season at Ebe Farms. At right, Nate Kleindel and his wife Melissa hold up a sackful of product from piles of potatoes at Bedlington Farms.

all around the potatoes to protect them until delivery. Delivery is scheduled based on the planting seasons, with some deliveries beginning in November into Southern California’s Imperial Valley and central San Joaquin Valley. Then they shift northward until shipments begin to Skagit Valley, Eastern Washington, and other northwest states for April-May planting.

the economic impact runs quite high. The seed potato farmers rely heavily on the solid farm infrastructure available in Whatcom County, including banking, insurance, accounting, equipment suppliers, and many others.

The three major farms account for about three dozen late-model tractors at a cost of about $300,000 each — a total investment of $10 million-plus just in tractors. These,

Pressures and changes have resulted in farmers coming together to form united farm organizations including the Watershed Improvement Districts, the Ag Water Board and more recently Whatcom Family Farmers.

LABOR AND COSTS ABUNDANT The three large farms each employ around 25 workers yearround, adding another 20 or more during the busy harvest season.

While the highly-skilled and experienced workers typically land the year-round jobs, the fact that there is a strong berry industry in the county helps provide the labor needed at harvest time. The potato harvest comes later when most berries are done, which minimizes competition for the increasingly hard-to-find seasonal farm workers.

While the employment numbers working on the farm are quite low, 60 | BUSINESSPULSE.COM

of course, have to be kept running.

As with most types of farming, labor costs are minimized by everincreasing mechanization and automation, all requiring higher levels of investment and professional services to install and maintain.

Scott Bedlington estimated the multiplier effect of seed potato farming at 7–8 times, which means the contribution to the local economy from these handful of farmers amounts to about $120 million.

One of the most significant factors affecting the present and future of seed potato farming in Whatcom County is the cost of land. Each of the three major producers farm

about 2,500 acres, with about onethird of those acres in seed potato production each season. Potatoes are very susceptible to disease, and crop rotation is essential to keep the high quality of potatoes needed for seed.

So these farmers have to access three times the acreage needed for their crop each season. With land costing $20,000-$30,000 an acre, it is cost prohibitive to expand substantially. Renting farmland also is expensive. Without the hard work and foresight of the previous generation in acquiring a substantial land base, the local economics of land costs would mean this aspect of local farming would have disappeared like several other major farm types.

Scott Bedlington said he purchased land in 2004 for $3,000 an acre. Such purchases no longer come available even though potato farmers have responded to this challenge by increasing their ability to farm throughout the county by way of more mobile operations.

This allows them to purchase or rent land around the county where there is less competition. But even that land is getting harder to find.

Prices have been driven up by three factors: • Residential development; • Canadian berry farmers relocating, • And the need for dairy farmers to expand their land base.

Policies in conflict with growth in Bellingham have resulted in

growth in the Ferndale and Lynden areas at rates seven times faster than Bellingham. Canadian berry farmers have been selling farmland in the Lower Mainland for $70,000– $100,000 an acre and purchasing land here for what seems to them bargain prices. The 100-plus dairy farms have added pressure because of manure management regulations that require a substantial land base to apply their nutrients.

The combination makes it nearly

impossible to expand seed potato farming and provides a significant hindrance to the future of farming in the community.

The high cost of land does provide one important benefit. The value of the land provides a cushion against the normal ups and downs of farming. As Scott Bedlington mentioned, it increases the farms’ equity and improves their borrowing power. If needed, they can sell land to help cover a difficult year.

While plant science, business savvy, cooperation, and careful farming methods demonstrate some important reasons for the remarkable state of local seed potato farming, nothing replaces the work ethic that is part of every successful farming operation. As reported in a cover story in a national potato magazine, Spudman, Scott and Melissa credit their father Dick Bedlington for the success they enjoy. Scott said that everything he and Melissa have today, they owe to the hard work of their father and grandfather.

Referring to their father, Scott said, “He’s done a great job. His father gave him the opportunity, and my dad took it from there and expanded it. I honestly believe it’s from (what) he taught us – how to work hard, and how to do it the right way, to do a good job. We consider we have done it the right way and it’s because of the way he trained us.”

Data Link West

Complete Computer System Service $PNF WJTJU VT BU PVS CPPUI BU UIF /PSUIXFTU #VTJOFTT &YQP

Providing solutions to Bellingham business computer technology needs including: s COMPUTER HARDWARE s OPERATING SYSTEMS s NETWORK DESIGN s HARDWARE SOFTWARE INSTALLATION s AND MUCH MORE

360.734.8911 s 0.306.8175 http://datalinkwest.com/ WHATCOMBUSINESSALLIANCE.COM | 61

INDUSTRY REPORT: SEED POTATO FARMING

Melissa Bedlington-Kleindel watches harvest results on a conveyor belt at Bedlington Farms.

GENERATIONAL LEARNING LED GROWTH Scott Bedlington and his sister Melissa Bedlington-Kleindel purchased the farm from their father Dick over time, beginning in 2001 and completing the acquisition in 2013. Dick Bedlington had grown the land base from about 200 acres when he took over in 1973 from his father, Gordon, to the more than 2,500 acres farmed today. Gordon began purchasing his first acreage in the late 1940s when he started potato farming. Scott now runs the daily operations; Melissa manages finances, the office, and overseas shipping. Melissa’s husband, Nate Kleindel, is the warehouse manager and he oversees shipping, storage, and grading operations. Scott and Melissa’s stepmother, Marlys, con62 | BUSINESSPULSE.COM

tinues as a partner in Pure Potato, running the tissue culture lab and greenhouses.

Similarly, Greg Ebe credits his grandfather, Oscar, and his father, Leonard, for their hard work and foresight. At 88, Leonard still remains involved in the farm by checking up on things. While Scott Bedlington worked on the farm from an early age, buying his first tractor at age 14, Greg Ebe’s career

took a different turn.

He graduated from Seattle University with a degree in civil engineering and he co-owned Reichhart and Ebe Engineering, a Bellingham civil engineering firm.

Ebe continued involvement in the farm to some degree during his engineering days, but since about 2001 he has cut back on engineering and spends more time on the farm. The firm was sold to its

Local farmers understand how much their future depends on working cooperatively with the tribes to ensure sufficient water for farming. Scott Bedlington and Greg Ebe are both optimistic about working with local tribal leaders in dealing with important issues of water quality and water access.

employees but Greg continues to check in on things at the office, just as his dad does on the farm.

Why farm? For Ebe and Scott Bedlington like most farmers, it’s about a way of life. “We’re passionate about what we do,” Ebe said.

“We work closely with our clients.

Their success is our success. If they do well, we do well.”

Scott Bedlington answered the question similarly: “Farming is what I’ve always done, never considered anything else.” Scott and his wife Monica have four children.

Samantha, 19, is in college taking business courses. Gordon, 7,

Canadian berry farmers have been selling farmland in the Lower Mainland for $70,000 to $100,000 an acre and purchasing land here for what seems to them bargain prices. was named after the Bedlingtons’ grandfather. Gage, 5, and Gillian, 3, round out the Scott Bedlington farm family. He has a lot of hope that the farm can continue into the fourth generation.

The Hawley family roots in farming in our community go back over 100 years. Roger’s wife, Vicki, is very involved in the family farm, handling finances, and Roger Hawley’s son, Mike, a Washington State University (WSU) graduate, is involved in the seed potato business. Will this tradition continue?

Hawley worries about ever-expanding regulation and the degree of control that those who are not farming lack over water rights and use.

Jeff Bedlington’s farm is a family affair as well, with wife Diana involved in farm operations – particularly in variety management and plant health. They have a daughter

studying plant development at WSU, and a son in high school.

The Ebe family includes Greg’s wife, Mary, who is the farm’s office manager, and three children all in Ferndale High School. As is normal for farm families, the kids work part-time on the farm. With a history dating back nearly 100 years, there is also hope for continuation of family farming in the Ebe family.

Is that a realistic hope? Certainly many pressures prevail on farming.

Pressures and changes have resulted in farmers coming together to form united farm organizations, including the Watershed Improvement Districts, the Ag Water Board, and, more recently, Whatcom Family Farmers.

Scott Bedlington and Greg Ebe are involved in leadership in these organizations. Scott serves as president of the Ag Water Board, having stepped down recently as vice president of Whatcom Family Farmers WHATCOMBUSINESSALLIANCE.COM | 63

INDUSTRY REPORT: SEED POTATO FARMING

Our Goal is to Help You Achieve Yours

See why so many clients from the Northwest – from individuals and non-profits to small and large companies – trust the people of Archer Halliday.

Providing solutions for your success

ARCHER HALLIDAY

• Tax Strategies & Implementation • Pensions • Growing Your Business • Small Business Consulting • Start Up Business Consulting

P.S.

Certified Public Accountants & Business Consultants 1621 Cornwall Avenue, Bellingham, WA 98225

while continuing on the board. Jeff Bedlington is the board chair of Whatcom Farmer’s Co-op.

The ever-increasing cost of land is one major concern; another is water. Ebe is grateful that his father had the foresight to secure water rights for their land. “It was difficult to imagine in the 1940s how farming would change and evolve,” he said.

The rigid laws regarding water 64 | BUSINESSPULSE.COM

• Tax Returns & Tax Planning

(360) 756-1010

www.archerhalliday.com

for farming put in place then do not reflect the current realities of farming.

“Farming has to be far more efficient, the land is so expensive it requires intensive farming,” Ebe said. “They couldn’t envision that 75 or 100 years ago.” He points to irrigation as one example. Older systems required far more labor than is affordable today. “We could go to more drip irrigation, but our

water certificates have restrictions that limit flexibility.”

One major change over the last few decades is the importance of tribal treaty issues related to water. Local farmers understand how much their future depends on working cooperatively with the tribes to ensure sufficient water for farming. Scott Bedlington and Greg Ebe both seemed optimistic about working with local tribal leaders in dealing with important issues of water quality and water access.

“We view them as friends and neighbors,” Ebe said, “We have great respect for them and their culture. Fishing is in their DNA and not just a livelihood. No one understands this better than farmers because farming is in our DNA. We want these things for our children as well.”

Scott Bedlington made note of the importance of the six Watershed Improvement Districts, the Ag Water Board, and Whatcom Family Farmers in enhancing the relationship with the tribe and negotiating through some difficult issues. “Now we can work together on a government-to-government level,” he said, noting that the Watershed Improvement Districts and Ag Water Board include all farmer-landowners and are selftaxing government entities.

Ebe agreed, “We can look at all these issues collectively with the WIDs. For the first time we’re in a position to work with the tribes and our local governments as an industry. We have high expectations.

We think we can accomplish great things.”

While clouds of high land costs and uncertain water may hover over the future of family seed potato farming, optimism combined with hard work got them to the high place of prominence they enjoy today.

And hopefully, will carry them into a prosperous future.

Join us at the whatcom Business Academy for

SALES SECRETS

with speaker and Sales Leakage Principal

Jim Obermayer on May 18, 4 p.m. at the

Four Points by Sheraton Bellingham Those completing all four classes at the academy will recieve a WBA Certificate of Mastery. To learn more and register for your certificate, visit: whatcombusinessacademy.com

TICKETS $20 WBA Members $45 Non-WBA Members For registration, visit: whatcombusinessacademy.com The Whatcom Business Academy is an ongoing series of business classes for personal and professional growth. Taught by business leaders, our events emphasize practical skills and shared experiences.

JIM OBERMAYER Jim Obermayer is a principal in Sales Leakage Consulting, Inc., a sales and marketing strategy consulting firm and a principal of Cerius Consulting. He specializes in helping small to medium-size companies identify sales and marketing leakage issues that stifle sales growth and waste valuable marketing dollars. Aside from consulting, his career has been equally divided between sales and marketing positions in businessto-business corporations.

In addition, Obermayer is the author of “Managing Sales Leads, Turning Cold Prospects into Hot Customers” and “Sales & Marketing 365.”

SPONSORED BY

ANALYSIS: REGULATIONS GONE WILD

Regulations gone wild

Have we reached the tipping point?

Series of Articles by Mike McKenzie, Business Pulse Editor

B

usiness owners of every sort, retail and wholesale, professional services, and especially manufacturers…builders, both residential and commercial…home buyers and company owners wanting to expand facilities…and, ultimately, we consumers – all of our heads are spinning.

Everywhere we turn on a 360-degree pivot we’re hit squarely in the wallet with pay-as-you-grow costs – assessed on the producers and passed along to their customers. The area most often producing horror stories of exorbitant fees (permitting, compliance, and fines, etc.) is in how someone wants to use 66 | BUSINESSPULSE.COM

their own property.

And, the thickness and complexities of the web of regulations and the degree of difficulty getting through it rivals The Matrix. The head spins one way, there’s water problems staring you in the face.

Stormwater management, water use rights, protected wetlands, water polluting, sewer requirements, wells, salmon protection….when you want to stop, say when.

The head spins another direction, there’s air quality looming over you, and eminent domain, and impact on environment and traffic, and safety regs, and building codes, and licenses and certifications…. “…Walk into our parlour,” says the Spiders (governments and their agencies) to the Fly (you).

A man who has made a living for more than four decades as an expert on community planning, maneuvering the landmines of regulations and their attendant costs, consultant

Bill Geyer in Bellingham, put it this way: “During my 40 years of professional practice – initially as a public sector planner and the past 25 as a private consultant, I have seen many land use regulation systems and diverse planning styles.

Unfortunately, the past decade has seen more public sector planners invoking personal preferences beyond adopted codes and ordinances.”

After we visited with more than a dozen companies, from very large down through medium-sized (60plus employees) to as few as 6-7 on the payroll, consensus held that we have hit a tipping point: “Enough is enough” is the common rallying cry, and four executives – none of them knowing what the others had said to us – used the same one-word descriptive exclamation, and spat it out like an expletive: “Extortion!”

Brooks Manufacturing CEO John Ferlin identified regulatory entanglements over storm water drainage, chemical storage, mitigation, permitting, and others. He estimated that it takes up to $150,000 a year just to monitor compliance.

“Agencies…fees…it’s become an industry,” Ferlin lamented.

(Photo by Patrick Downing)

One of those was John Ferlin, CEO of Brooks Manufacturing in the lumber sector. “It’s become an industry,” he said. “The state, county, and the city, and all the little cities in the county, and their agencies, and their sub-agencies. They keep adding more staff, and raising fees to pay more staff, and it’s gotten way out of hand.”

It’s systemic throughout the country, not just here, though Whatcom County officials have repeatedly acknowledged publicly that they’re working hard to change the perception that Bellingham and

“Fees and permit costs are out of control statewide. The high cost of government and regulation is hindering our industry’s ability to provide affordable housing.”

— Dave Main, president of the Building Industry Association of Washington

Whatcom County are not business friendly. Example from elsewhere: Corporation manufactures hundreds of outdoor recreation products. CEO Travis Huisman said that California law (Prop 65) creates regulatory problems re: packaging labels. The cost of compliance is sky-high for recreating labels unnecessarily. Huisman said the law has created “a cottage industry of attorneys filing public sector lawsuits against companies like us with products. The repackaging costs are

expensive. But worse is settling for $35,000 because you know defending your position will be more costly with little guarantee of success. So, we have to choose between defending ourselves in court, or settling with these private attorneys.

It's extortion.”

Another subplot: litigation – a landscape filled with lawsuits by special interest groups, often stifling the planned growth of businesses as they sit and wait, and run up their consultant and attorney fees. Ferlin has Brooks engaged in a courtroom dispute, and he estimated that his company pays about $150,000 a year to various experts “just to keep us in compliance.”

The aforementioned Bill Geyer just went through a protracted legal battle with a happy ending in a District Court that could serve as a landmark case in over-riding a Whatcom County Council and Staff and Hearings Examiner original and appeals decisions.

Read how Geyer’s guidance, from start to finish, and a Bellevue attorney won one for the ages in the case of Lincoln Park Retirement Center.

Pages 74–78 This analysis is mostly about that sort of sickening and angry expression across the spectrum of the local business community about over-reach and over-regulation, supported by anecdotal evidence and case studies to illustrate the angst.

Start with Google; type in regulations in business, and brace yourself for the endless stream of results.

The Whatcom Business Alliance conducted a Business Confidence survey to start the year and got more than 200 responses. The response about concerns for business leaders going into 2016 (published in Business Pulse’s January Winter Edition) asked, “What are the primary constraints on the growth of your business?” No. 1 atop the list by far was: “taxes and government charges/licensing and regulations.”

Travis Huisman, CEO McNett Corporation (Photo courtesy McNett Corporation)

Fees and strangling rules are perceived as relentless and often random, certainly unevenly applied with moving parts, depending on the locale and the agency involved.

City government, county government, and various authorities in charge of the environment and public services appear to multiply and divide like amoeba.

It’s a political issue in a year of a U.S. presidential election, and on our local front the issue has reached a heightened level of aggravation that draws ire from many you talk to in business. Plus, many taxpaying customers.

Literally, several persons we interviewed grew visibly frustrated as they discussed this topic. Two – both manufacturers – went on a tirade. A third joined them in the common theme that this runaway regulatory trend is driving U.S. manufacturing off-shore, a topic in one of our guest columns in this edition, and a common political campaign talking point.

In a wide-ranging analysis we gathered anecdotal and research information from air quality control, water usage, stormwater, protected wetlands, interstate commerce, and more. The players are Department of Ecology, Clean Air Agency, County Planning, City Planning, and the constant crawl of inspections, license requirements, impact fees, fines, et al.

WHATCOMBUSINESSALLIANCE.COM | 67

ANALYSIS: REGULATIONS GONE WILD

Mark Schramer, President Building Industry Association of Whatcom County (File Photo)

Here’s a tell-tale story from Washington gubernatorial candidate Bill Bryant: “A CEO called me a few months ago and said, ‘Bill, its not official or final yet, but I wanted to give you a head’s up that it’s likely we’ll be moving 300-400 jobs out of

Washington next year.’

“I said, ‘OK, why?’ He said, “In Washington we have a culture of no. Every time I want to expand or do something different, I’ve got two agencies telling me why I can’t do it, and to do it the way they want me to do it won’t pencil out. In this other state, the governor has two agency heads sitting around the table with us figuring out how we can get done what we want to do in their state.’

“He said, ‘Bill, until you can turn this culture of no into a culture of yes, jobs are going to keep leaving Washington.’”

A local expert on land use and property rights, formerly a staff planner for Whatcom County 10 years (1971-‘81), Roger Almskaar pointed out, “Regulations are necessary to manage and balance environmental concerns with urban and rural growth. When I worked in the planning department there weren’t enough rules. Now there are

far too many rules.”

Almskaar, a contributor to Business Pulse of case studies that he argues of land rights abuse, pointed to recent public hearings on the Whatcom County Comprehensive Plan that had many pages of proposed tax increases and fee ideas, “…including county-wide impact fees and real estate tax increases.”

He cited startling statistics: “Overregulation is the main reason our local economy is stagnant, while our property rights are being eroded away. We are 30th in the state out of 39 counties in personal per capita income (source in 2014), but 9th in population. Yet our housing costs are almost as high as Snohomish County.”

Officials at the Building Industry Association of Whatcom County (BIAWC) echoed that theme in describing how the construction industry is one of the most heavily-affected centers of over-reach.

www.capstonept.com (360) 752-1115 Locally Owned

Your Therapy Team for Life!

From pediatrics to geriatrics and all the bumps along the way.

68 | BUSINESSPULSE.COM

“The main problem is lack of available lots, and buildable land,” said Mark Schramer, president of the BIAWC. “But also the critical areas ordinances can slow down and cause extra time to even a simple project such as a deck.” Which, of course, drives up the cost.

Again, this is systemic.

Whatcom County doesn’t have a corner on the hurt.

“Fees and permit costs are out of control statewide. The high cost of government and regulation is hindering our industry’s ability to provide affordable housing for working families. These costs need to be brought to the forefront of any discussion.”

That’s Dave Main speaking. He’s president of the BIA for the state of Washington. He said that small business operations are the core of the home building industry in the state. “The burden of over-regulation on these businesses is a major reason why so many young people are having difficulty getting started

in our industry,” he said, “and one of the main reasons for the escalating costs and a shortage of labor.

“The system has become so complicated – even for the contractor.

What should be able to be done easily has become a real challenge for the home owner and contractor.”

In our outreach for input, we encountered many business owners who represent another dark side to this major, multifaceted syndrome: public silence. Understandably, they decline to speak out for fear of reprisal. As one consultant said, “One of my clients, if (they) speak up, somebody might notice and say, ‘Oh, hey, they might have a problem over there,’ and show up at the door.”

Another small company owner would only speak annonomously in saying that this continued rise of costs could drive small companies like his, which has been doing well for decades, out of business. His

John and Mimi Ferlin Owners, Brooks Manufacturing (Photo courtesy of Mark Turner, TurnerPhotographs.com)

(Continued on page 72)

(360) 752-5551 Experts in returning employees to work and life!

• Physical Therapy • Occupational Therapy • Hand Therapy • Functional Capacity Evaluations • Post-Employment Testing • Work Conditioning • Work Hardening

400 Sequoia Drive, Suite 130

Bellingham, WA 98226 WHATCOMBUSINESSALLIANCE.COM | 69

ANALYSIS: REGULATIONS GONE WILD

Fees, Fees, Fees Bellingham Mayor Kelli Linville

Here’s how I want Bellingham to operate: There’s general taxes, and there’s fee-for-service – two separate ways to assess.

The general taxes pay for the public interest that we all benefit from.

The fee-for-service pays for something that you, as in individual will benefit from.

Or, need to pay because you’re going to have an impact.

Fees should be assessed based on the cost of delivering the service, not as a way to generate money. We are examining our fees to make sure that they meet that test.

We’re also consolidating steps that people have to go through to get permits. I’ve been a big proponent of the lean management. Our permitting center is on their third unit. The first one they saved 37 days on a simple building permit by figuring out who was touching what, when, and how many times.

Then by putting something in a folder in a specific place, you didn’t have people running around all over waiting for somebody to do something. Very simple stuff. Not necessarily the big silver bullet, yet the manufacturing part of it will be beneficial to some of our shops.

We just got a new permit system that we’re working through that will give people a lot more opportunities to do things on line so they don’t have to come in the office.

That’s the big thing, permitting. If it can save time and money for us, it will for a developer or contractor or an individual who wants to do business with the City.

70 | BUSINESSPULSE.COM

We wish you a happy and prosperous New Year! from the Business Services Department at WECU速 Business Services 360.676.1168 ext 7320 www.wecu.com

ANALYSIS: REGULATIONS GONE WILD (Continued from page 69)

costs include him retaining a consultant and an attorney. The owner said, “the ecology department and clean air agency don’t want to talk to me, they will only talk to an ‘expert.’”

Three other sources spoke heatedly about their attempts to expand their company – thereby adding to their area’s economy – by building more space, and encountering exorbitant impact and permitting fees.

Which brings back the thought of extortion.

“This has to stop somewhere, somehow,” John Ferlin said, displaying a spreadsheet that showed how Brooks Manufacturing paid $300-and-change for a particular fee back when he took over the company in the late ‘80s. This year the fee for the very same service will exceed $3,000.

Bill Geyer, who is certified by the American Institute of Certified Planners, said a culture change in government is the solution.

“Property owners are left wondering how staff decisions can run counter to codes approved by elected Council members,” he said, as in the example of the case of Lincoln Park Retirement Center. “A culture of strong-arming property owners results from staff over-reach.”

Many do not have the time or the funds or the temperament to fight back, he said. “For property owners with the fortitude to commit substantial time and funds for appeals, fairness can prevail,” Geyer said. “Otherwise, property owners suffer incorrect staff decisions.

Fairness for property owners and general public alike requires professional integrity and competent oversight of staff by the department directors.”

Consultants, attorneys, and business leaders say that heads must stop from spinning, and that will come only with a halt to regulations gone wild.

72 | BUSINESSPULSE.COM

“Every time government adds a fee or permit, it’s the home buyer who pays for it.”

Linda Twitchell deals in management affairs and media relations for the BIAWC. (photo by Patrick Downing)

Lowering permit fee helps, but associated costs still sting Prepared for Business Pulse

by Linda Twitchell, Governmental Affairs Director Building Industry Assn of Whatcom County (BIAWC)

P

ermit costs are rising because more permits are required than were required 10-12 years ago. This is particularly true regarding environmental, or what are called critical areas concerns like wetlands or steep slopes.

Bellingham just voted to decrease the size of small, secondary wetlands that require city permitting. Bellingham suggested that these permits cost just $1,350. But to get one, a homebuilder has to have reports done and hire someone to shepherd the process through to obtain a permit – which can cost an additional $2,000-$3,000. Every time government adds a fee or permit, it’s the home buyer who pays for it.

Whatcom County in 2015 had, for a second year in a row, the fourthhighest home prices in the state, according to the WU Runstad Center for real estate research (after King, Snohomish, and San Juan Counties).

Yet we have only the 13th highest median income among 39 counties, according to the U.S. Census Bureau. That disparity is indicative of a growing crisis in housing affordability.

A tight land supply creates a higher housing market, which also drives up rents and makes it essential that we carefully consider any increase in taxes or fees on housing.

Finally, a solution that reduces the costs of your Employer Healthcare Insurance…

The Whatcom Business Alliance

Employer Healthcare Plan

If you are a Whatcom County employer, with 50 or more employees on coverage, struggling like others annually with the continuing increase, year over year in your employer healthcare costs, we have a solution for you.

The WBA employer healthcare options provide creative, market-based solutions to your rising healthcare costs. It focuses you on the health of your employees, incentivizes them to make good choices and saves you money.

Whether your employees are located in Whatcom County, another County, another State, or a combination of all three, this plan still works for you. Isn’t it time for you to take control of your employer healthcare costs?

Before you renew your employer healthcare coverage, give us a call for a free consultation.

You’ll learn why other employers are raving about these creative solutions.

WHATCOMBUSINESSALLIANCE.COM | CALL NOW AT (360) 746-0411 | FACILITATING BUSINESS SUCCESS

ANALYSIS: REGULATIONS GONE WILD — A WIN IN COURT

Yes, you CAN fight City Hall (or in this case, Whatcom County) The Carneys and Reid did…and won, after a costly, 7-year legal fight that could become a landmark decision on property rights/land use regulations

W

hen the verdict came down, Julie and her husband Mike sent a simple message out to supporters, in huge print: “WE WON!” The intricacies of their Superior Court case, heard in Snohomish County with a Bellevue attorney representing them, appear elsewhere. The simple facts at the heart of their story lead to some head-scratching, and the thought, “Seriously?”

A self-described lifetime Bellingham/Whatcom County resident out of Bellingham High

74 | BUSINESSPULSE.COM

and Cascade Business College, Julie Carney told us how she always had harbored a desire to do something special for Alzheimer’s patients – in memory of her grandfather, who dealt with the disease.

And, the County government wouldn’t let her. Why? “Sewer,” she said.

Sue them, she then said.

She and Mike spent absurd amounts of money on filings, court fees, a professional planning consultant, and an attorney, and spent 7 years fighting for what she also wrote on a petition after a judge ruled in their favor: “Like we’ve been saying, the County’s action was illegal.”

Planning consultant Bill Geyer was involved from day one of the 7-year process, including legal roadblocks, to get the land where he’s seen here permitted for building a retirement home with special services dedicated to residents with Alzheimer’s. (Photo courtesy of Geyer & Associates)

A sewer? Really? That’s all?

County Staff and County Council and County Hearing Examiner all stuck to a misinterpretation of the County Comprehensive Plan because they said 300 feet of a sewer extension at the Lincoln Park Retirement Center near Blaine was not allowable.

It was zoned properly, permitted properly, planned properly. And, Julie said they had an approved let-

“Like we’ve been saying, the County’s action was illegal.”

Northwest Washington’s leading Telecom and Voice Integrators for over 30 years

— A petition by Julie and Mike Carney, after Whatcom County denied them a building permit on technicalities of sewer hook-up and a small item in the County Comprehensive Plan, which isn’t law.

ter from Birch Bay Water & Sewer District giving them permission to tap into the sewer system. The land will have a nature preserve on it.

A judge ruled that the County inproperly used the Comp Plan as law—and it isn’t.

This is not a fly-by-night, fantasy trip project. Julie Carney has owned and operated businesses in Whatcom County for more than 30 years in real estate. Although she’s reached retirement age, she continues to run sales and property management in that company and also owns and operates a convenience store with fuel pumps outside and a Subway shop inside on the Guide

Congratulations to all of the 2016 Business Person of the Year finalists &

“Thank You” to all of the Baron Telecommunications clients.

360.734.5082

www.barontele.com Serving the Pacific Northwest Since 1952

WHATCOMBUSINESSALLIANCE.COM | 75

ANALYSIS: REGULATIONS GONE WILD — A WIN IN COURT N PROPOSED STORMWATER WETLAND POND

W

E

F PROPOSED 3-STORY BLDG. 7,000 S.F./FL. MEDICAL OFFICES (ON 1ST FL.) 20 SUITES TOTAL ABOVE (10 PER 2ND-3RD FL. )

S

18 1

DASHED LINES SHOWN INDICATE MEDICAL OFFICE LAYOUT (1,000 S.F. LAB @ CORNERS & 600 S.F. EXAM ROOMS)

1

12

NORTH WING 17

11

PROPOSED 2-STORY BLDG. 13,000 S.F./FL. 38 SUITES TOTAL (19 PER FLOOR)

ALZHEIMER CARE ASSISTED LIVING COURTYARD

5 17

28

29

40

41

77

88

89

100

101

52

53

64

65

27

RECEIVING/ SUPPORT 2,750 S.F.

110

6

123

28

E

SOUTH WING

ACTIVITIES AREA 2,295 S.F.

PROPOSED 3-STORY BLDG. 9,750 S.F./FL. 30 SUITES TOTAL (10 PER FLOOR)

PROPOSED 2-STORY BLDG. 9,100 S.F./FL. 26 SUITES TOTAL (13 PER FLOOR)

126

LOADING AREA

D SINGLE STORY PHYSICAL THERAPY BLDG. 4,100 S.F.

16

KITCHEN/ STORAGE 2,500 S.F.

C

COURTYARD

C

D

ATYPICAL 2-BEDROOM SUITE (30' X 32') SEE TYPICAL FLOOR PLAN LAYOUT - 'B'

ATYPICAL 2-BEDROOM SUITE (34' X 37') SEE TYPICAL FLOOR PLAN LAYOUT - 'B'

ENTRY SIGN

ADMIN. OFFICES 2,000 S.F.

FOYER 1,300 S.F.

PROPOSED 3-STORY BLDG. 9,000 S.F./FL. 28 SUITES TOTAL (8 - 1ST FL. 10 - 2ND FL. 10 - 3RD FL.)

PROPOSED 3-STORY BLDG. 11,050 S.F./FL. 28 SUITES TOTAL (8 - 1ST FL. 10 - 2ND FL. 10 - 3RD FL.)

F

G PROPOSED CAFETERIA BLDG. 6,000 S.F. (CLEAR 2-STORY)

39

DELINEATED WETLAND LINE

76

122

111

127

10' WIDE HALLWAY TYPICAL

150

B PROPOSED 3-STORY BLDG. 9,000 S.F./FL. 30 SUITES TOTAL (10 PER FLOOR)

ATYPICAL 1-BEDROOM SUITE (20' X 32') SEE TYPICAL FLOOR PLAN LAYOUT - 'A' COURTYARD TYPICAL 1-BEDROOM SUITE (24' X 32') SEE TYPICAL FLOOR PLAN LAYOUT - 'A' ELEVATOR & STAIR WELL LOCATED AT ENDS OF BLDG. TYPICAL

138

161

139

162

149

172

A PROPOSED 3-STORY BLDG. 9,000 S.F./FL. 30 SUITES TOTAL (10 PER FLOOR)

ENTRY SIGN

JULIE CARNEY

LINCOLN PARK RETIREMENT HOME SITE PLAN EXHIBIT

EX1

PERRY PALLET Celebrating 20 years of pallet and crating solutions in the Pacific Northwest

360.366.5239 solutions@perrypallet.com 7200 DELTA LINE RD, FERNDALE 98248 PERRYPALLET.COM

76 | BUSINESSPULSE.COM

A blueprint of the proposed Lincoln Park Retirement Center near Blaine that recently got permitted after a long, expensive fight by the owners against regulations gone wild.

Meridian. Mike Carney works full-time, too, with Homeland Security’s Customs & Border Protection.

The Carneys bought the land 24 years ago along with business partner Michael Reid that the Lincoln Park project sits on. They applied for the conditional use permit in 2009. That alone cost $3,650.

Bill Geyer, the principal of Geyer & Associates Inc. in Bellingham and certified by the American Institute of Certified Planners (AICP) with 40 years’ experience, guided the project. “I led and managed the project design team and represented applicants Carney/Reid from the November 2009 application through the December 2014 Hearing Examiner hearing and the May 2015 County Council decision,” Geyer said.

His summary said that all site design and civil engineering complied with County Code per Whatcom County Planning, Public Works, North Whatcom Fire & Rescue, and Birch Bay Water/Sewer District.

Then the bottom fell out when the site was rezoned and the sewer issue arose. What followed, Geyer said, stacked up more costs for Carney and Reid. County Council disapproved the permit by a 6-1 vote (Barbara Brenner voted in favor). “Site analysis, technical reports, design, and processing the application through the County cost well in excess of $100,000,” Geyer said. “That’s exclusive of any property holding or other costs.”

Legal bills mounted through a long series of hearings. In the end, Geyer said, he also “provided expert testimony to attorney Charlie Klinge for the hearings and subsequent appeal.”

Snohomish County Superior Court Judge Richard T. Okrent issued a favorable oral ruling on Jan. 12 and published the written order on Feb. 9. It was over. The County Assistant Prosecuting Attorney sent word that the County Council

Words fall short.

Our chocolate never does.

Business or personal, please call on us for your gift needs.

Factory store 4600 Guide Meridian 360.676.0589

Chocolate Necessities & Gelato 1426 Cornwall Avenue 360.733.6666

www.ChocolateNecessities.com

• Las Vegas-Style Casino • Headline Entertainment • Three Great Restaurants • Two Hotels

BP Owned by Upper Skagit Indian Tribe

On I-5 at Exit 236 • theskagit.com • 877-275-2448 WHATCOMBUSINESSALLIANCE.COM | 77

ANALYSIS: REGULATIONS GONE WILD — A WIN IN COURT would not appeal.

The Carneys and Reid won their petition, and the County Hearing Examiner will finalize the permit conditions so the project can get under way.

“The potential impact of winning this case,” Geyer said, “is it underscores the requirement for County staff to review and approve applications in accordance with adopted County code, not according to what staff thinks the code says.”

Julie Carney commented by telephone, “I’ve always had a passion to do this project.”

The proposed retirement home is an old farm house sitting on 17 acres of private setting off Lincoln Road. Almost half the land will be an 8-acre wetland preserve. “We’ve always thought it would be good for the community. Both of our mothers are in a nursing home.

"I felt very strongly that we weren’t being treated fairly and I stuck it out.”

She described how they started developing the land in 2004 and waited five years for permitting.

“They took away our land use rights. By down-zoning they also made our land worthless, so it would be no more than a field.”

The couple’s petition gathered more than 400 supporters. Nobody opposed them in public hearings.

“Not one person,” Julie said. “I couldn't believe we were denied.

We were in shock. I could never figure it out.”

Costs kept mounting.

Application fee, wetlands fee, appeal fee. “We were going broke,” she said. “The County was so against our project—assisted living with emphasis on Alzheimer's...they denied us, denied us, denied us….

“They should be ashamed for what they put us through.”

78 | BUSINESSPULSE.COM

Prepared for Business Pulse by Bill Geyer, Lead Consultant

Lincoln Park

Retirement Center Summary A dream of a retirement home with built-in special care for Alzheimer’s patients was held up 7 years by technicalities of rezoning and 300 feet of an already-approved sewer extension.

After winning in court, the project is full-speed ahead.

DETAILS OF LINCOLN PARK RETIREMENT CENTER PROJECT NEAR BLAINE IN WHATCOM COUNTY Location: 1⁄4 mile west of Blaine Road (SR 548) and Lincoln Road intersection.

Project Description: 170 assisted care suites (for persons 55 and older), plus separate Alzheimer’s care facility (68 suites), related medical support facilities, private passive recreation for residents, and up to 7.5 acre wetland preserve (site plan attached); 2-story and 3-story structures.

Entitlement: Requires a Conditional Use Permit (CUP) and Plat Alteration (PA) from Whatcom County. Applications vested to November 2009 to Urban Reserve 4 (UR4) zoning within Urban Growth Area (UGA) per Whatcom County letter of completeness. (County Council changed zoning to Rural 10-Acre (R10A) in December 2009 after vested permit application.

Retirement housing is also a conditional use in current R10A zone. All site design and civil engineering complied with: • County Code per Whatcom County Planning.

• Public Works.

• North Whatcom Fire & Rescue (NWFR).

• Birch Bay Water/Sewer District (BBWSD).

• County approved traffic impact analysis, with no mitigation required beyond normal frontage construction.

• Wetlands delineation confirmed by Army Corps of Engineers and accepted by County Planning.

• On-site mitigation approved by County.

• Water/sewer (BBWSD) service, electricity (Blaine), and phone service are available at site. SEPA MDNS issued; staff agreed with applicant on all technical points and mitigation prior to public hearing.

Hearings: Whatcom Hearing Examiner (HE) hearing held 12/16/14. Many supporting letters from public submitted, no opposition testimony. County staff concurred with applicant’s design (engineering, wetlands, soils, zoning) except for 300-foot sewer main extension.

Therefore, Staff recommended denial stating GMA prohibits urban utilities outside UGA, citing Comp Plan policy for Short-Term UGA prohibiting utilities into Long-Term UGA. Hearing Examiner issued decision to deny on 1/21/15.

Owners appealed to Whatcom County Council, appeal denied (6-1) on 5/2/15.

LUPA action filed in Snohomish County Superior Court case #15-2-04222-8.

Hearing held 1/12/16.

Land Use Petition Act (LUPA) Decision: On 1/12/16, Snohomish Superior Court Judge Richard T. Okrent ruled in favor of the property owners and ordered Whatcom County to proceed with approving the CUP. The Judge found the County’s legal argument was flawed and did not have merit to deny the application. The final written order received (published 2/9/16), and the owners plan on proceeding with the project immediately.

Appeal: County Council sent notice to the Assistant County Prosecutor that the case will not be appealed.

(Bill Geyer, AICP, President, Geyer & Associates Inc. in Bellingham, represented the property owners from project application to review and through appeal. Legal counsel provided by attorney Charlie Klinge, Stephens & Klinge LLP in Bellevue, who won the Superior Court case.)

WHATCOMBUSINESSALLIANCE.COM | 79

PERSONALLY SPEAKING: KELLI LINVILLE

80 | BUSINESSPULSE.COM

Mayor Linville speaking at her January 2016 swearing in ceremony at City Hall.

personally speaking…

Kelli Linville with

Interview by Mike McKenzie Photos courtesy of the City of Bellingham

I

n a small conference room in the mayor’s chambers at City Hall in Bellingham, Mayor Kelli Linville pointed to a photo on the wall and narrated: “…Going to the fishing boat down at Squalicum Harbor – here’s my dad, here’s me, my sister Kerri, and my sister Kim – where Dad used to fish. We would take him down there, take his suitcase and the groceries when they went out, and then gather the dirty laundry and garbage when they came back.” From what Kelli described as a “very wonderful childhood…in a working class family,” she developed into a school-district educator, a business owner/operator, and a career politician. As a state legislator 17 years and now fresh into her second 4-year term as mayor, Kelli described in an informal conversation how and why her political bent evolved and how she learned to politick acutely from all positions—Democratic Party, bi-partisan, and nonpartisan. Relationships and solutions are two of her favorite words. Enjoy the insights….

WHATCOMBUSINESSALLIANCE.COM | 81

PERSONALLY SPEAKING: KELLI LINVILLE

A ribbon cutting at the Downtown Waterfront, which Linville considers as her most significant achievement of her first term, 2013-’16.

I

’m not party-affiliated any more. When I was a state representative in the 42nd District, I was very nonpartisan, even as a partisan legislator (Democrat) because the district was pretty much split.

So, I’m very comfortable being a nonpartisan mayor; I can focus on solving problems. That’s what I think the job of a public official is, and not necessarily all the other things that swirl around.

You know what your principles are and you’re not wedded to one way to fix an issue. Then you can work with other people.

WHAT DID DEMS THINK OF THAT? The last time I ran for legislative office I was not endorsed by the major Democratic support group.

82 | BUSINESSPULSE.COM

And I lost by 49 votes.

INFLUENCERS I grew up with a Republican businessman dad, and a Democratic – I call it do-gooder mom – and that’s why I’m the way I am.

(Laughing)

POLITICS TABOO AT HOME My parents never spoke about politics. I didn’t find out my dad was a Republican until Nixon was beating, who – McGovern? Would you believe it?

My mom didn’t like controversy.

Which in a way I thought was an advantage for me, because I got to formulate my own opinions on things without being overly influenced on things by my parents.

that I’m a Democrat. Though, I am fiscally conservative and strongly support business. Social progressive is the way I describe myself.

I think many people are like that. In 1992 when I ran for the first time, one of my flyers said, “It’s not jobs or the environment.

It’s jobs and the environment. This is the philosophy I’ve had for a very long time.

“I grew up with a Republican businessman dad, and a Democratic —I call it do-gooder mom— and that’s why I’m the way I am.” (Laughing)

CHOOSING SIDES

HOW THE PATH TOOK SHAPE

I had a career in education and I ran the first time against a Republican incumbent, and I didn’t know any better. That was just how it worked out. If I look at some of the big, core principles I would say

When I was a little girl, I wasn’t thinking about what I wanted to be when I grew up. We were apolitical at home, but community service was a big deal for my mom. And I saw times when my dad struggled

as a small business owner. So I experienced both ends of the political spectrum without labeling them Democrat or Republican.

My husband, Will Roehl ran for the County Council. I became exposed to politics because he was an elected official. And he’s really the reason I got recruited to run for the (state) House of Representatives. He was retiring from the County Council, and the state Democratic Party approached him.

He said, “I’ve been doing this for 12 years now, I’m tired. Talk to my wife. She’d do a better job than I would.” That’s how I got into politics. Even though I lost that first election, I went on to win the next one.

BETWEEN TERMS: LOBBYING

NOT EVEN

BY CITY COUNCIL? No. That’s a ball. Councils and mayors have to work their way through learning how they operate. I really respect people who run for office. Before I became mayor I was in their position – a budget and policy maker.

I am much happier in an administrative role. I think I was made for this role, rather than the political one.

AN END IN SIGHT I could have kept going until I was literally dead. I’ll be 71 when this term is up. Then, I might actually start not being responsible for something. (laugh)

RETIREMENT, THEN? I’m not going to retire. I have my little old-furniture retail business [Penny Lane Antiques in Old Town.] I’ve kept it going, barely; this is a full-time job.

2016 OPENING DAY June 7, 2016 • 7:05 p.m.

After I lost reelection in ’94, I lobbied for the farmers. I got a bill passed for them that had to do with their water rights…again. In legislature I was the lead on natural resources for nine years.

A NICHE: BUDGETING I was always interested in budget items…the last two years as the state budget chair. That’s what’s fun about this job: I get to propose the first budget, and I like that.

WHAT’S THE APPEAL? Really being able to use the budget as a living document to pay for things to happen. To me it’s not the power of it all. It’s the results you get when you look at community needs, and how you decide what you want to accomplish. And then, lining up the spending to get done what you want done.

That is extremely satisfying.

Especially when you see the difference you can make in this role.

EVER GET FRUSTRATED?

Now Accepting deposits for 2016 season tickets & Group Outings

No.

WHATCOMBUSINESSALLIANCE.COM | 83

PERSONALLY SPEAKING: KELLI LINVILLE

“I am much happier in an administrative role. I think I was made for this role, rather than the political one.”

Former City Council member Cathy Lehman (left), Washington Gov. Jay Inslee, and Mayor Linville

THE BUSINESS LIFE That’s my little hobby business.

We had a drive-through espresso business, too, in Eugene, Oregon.

Six of us – three couples – invested and started it in 1998, and just sold the last piece of property last year after we hadn’t operated it in quite a while.

It was great. My brother-in-law wanted to do this because he’d seen it in Bellingham. We thought, “ohno, there are way too many for us to start one here.” In Eugene they had Starbucks walk-ups but no drivethroughs, so we were the very first one down there.

We called it Fast Lane Coffee, and we also created Pacific Roasting Company as a way to save money on beans.

Executive) Jack Louws’ attorney.

WHAT WAS IT LIKE? There were no easy rides out there. You had to explain what you did, why you did it, why it works, and why it doesn’t work. And be willing to change it.

Top mayoral priorities: jail, lean permitting process and more fair fees, community solutions work groups, attract new businesses.

THE POLITICAL LIFE I have observed the relationship between planners and county executives and mayors, and these were people I’d worked with for many years while in legislature.

Pete Kremen (state legislator and later Whatcom County Executive) helped me get my role as a lobbyist. My husband was (County 84 | BUSINESSPULSE.COM

GAME-CHANGING WITH COUNTY One of the things that Jack and I committed to was changing the relationship between the County and the City. Now it’s a whole different atmosphere with people

working together to come up with solutions everyone can agree to. Not the years and years of struggle that it was before.

Jack and I meet every Thursday morning that our schedules allow to have dialogue, to discuss things on an ongoing basis and not have everything be a summit.

SUCCESS EXAMPLES? EMS. Lake Whatcom.

Emergency Coordination Center.

We put to rest the emergency medical services issue. With Lake Whatcom we pulled together a fiveyear plan that the Sewer and Water District, the County, and the City all agreed to. We co-located our Emergency Coordination Center out by the airport – a big success.

HOW ABOUT THE FAILED JAIL? I know that we’re going to be able to work together on some kind of a jail program. It’s too raw right now. That’s been a hard one.

Executive Louws and I basically haven’t had any big disagreements, and this is the next big thing we need to make happen. The councils are now actually working together on this. Something different has to happen…we need to move forward.

WATERFRONT ‘SHINING’ Obviously the biggest thing that I’ve worked on was getting an agreement with the Port of Bellingham on the downtown waterfront plan. That’s my shining thing that’s happened.

I’d been working on this for years in the legislature, both on the cleanup money that we got and the LIFT (Local Infrastructure Finacing Tool program) money – the $25 million to match the money generated off the waterfront. We received our first check last year.

I’m excited because it took me eight years to pass that bill.

CO-OP LOBBYING IN OLYMPIA Another thing that had never happened before between the County and the City: We decided to cooperate on a legislative agenda and hire the same lobbyists to represent all three of us (including the Port). We were first in the state to do this. We have enough things in common that we want to advocate for.

Gov. Jay Inslee speaking at a meeting as Port of Bellingham Executive Director Rob Fix (left) and Mayor Linville take it in.

Kelli enjoyed walking in a charity relay with her husband, Will Roehl, and between two granddaughters, Hailey (left) and Malia Linville.

BUILDING CONSENSUS My value proposition is relationships with people, because that’s how you get things done. And I don’t mean it in a back-door, smoke-filled room. I just mean the ability to talk to each other and to understand what you both need.

You put your ego and your way aside, concentrate on the goal, and figure out the best way to get there.

Rather than “my way, my way.”

That just never works.

CARRY-OVER INSIGHTS My experience in the legislature has made me a better mayor, because I have relationships with people and understand issues outside the City. My priorities are representing what the City needs, but the understanding I have helps me, for instance, to support regional transportation needs or water issues.

WHATCOMBUSINESSALLIANCE.COM | 85

PERSONALLY SPEAKING: KELLI LINVILLE BUSINESS BUGABOO: FEES, FEES, FEES Yes, permitting is a big thing.

Here’s how I want Bellingham to operate: Fees should be assessed based on the cost of delivering the service, not as a way to generate money. We are examining our fees to make sure that they meet that test. We’re also consolidating steps that people have to go through to get permits.

Read more details about Mayor Linville’s view of fees in the article on Page 70.

Linville speaks to participants in the 2015 Mayor’s Arts Awards ceremony.

Our area leadership: Mayor Kelli Linville and County Executive Jack Louws, who meet every week when their schedules permit to discuss matters common to all constituents (like the proposed jail, No. 1 on their checklist in the second term of office for each).

They pedaled at the 2015 Ski to Sea Race.

LEAN MEASURES HELP Our permitting center is on their third unit of lean management. In the first unit they saved 37 days on getting a simple building permit by figuring out who was touching what, when, and how many times.

We’re also adding online services for permitting.

Very simple stuff. It’s not necessarily the big silver bullet, yet the manufacturing part of it will be beneficial to some of our shops.

OTHER IMPROVEMENTS Internal interaction has improved.

We’re looking at consolidating meetings. What makes that work is we meet every Thursday morning as teams now – we no longer work in silos. This also makes things more clear and more consistent and predictable for the person coming in the front door.

INVOLVING COMMUNITY I put together a little technique to get to the low-hanging fruit – things we might be able to change quickly. They’re called community solution work groups.

One, for example, is for affordable housing. We came up with a list of recommendations and now there’s a strategy to implement.

Another is public, health, and safety because of concerns about downtown.

86 | BUSINESSPULSE.COM

Bellingham’s Deputy Police Chief Flo Simon (left) and Police Chief Cliff Cook (center) enjoying Flo's Famous Ribs alongside Mayor Linville at a recent fundraiser.

We have one with business owners to discuss more predictable, consistent ways to make more sense, make things more affordable. We ask things like, “How do we work on incentives as well as fees?”

We do these in six meetings involving both the public and our internal staff, where appropriate.

THE END GAME We have to balance protecting the public and encouraging economic development. People who live here want to work here, and right now living here and working here are very difficult. One of my goals is to make sure we don’t have a completely gentrified city.

MORE SPECIFICALLY? We want a city where everyone can have a job and affordable housing. When I say everybody I mean that we’re not excluding a whole swath of people who want to live in Bellingham. I don’t want us to turn

into Santa Barbara (California). It doesn’t suit my personality.

GROWING ECONOMY Economic development is important, and even though the City doesn’t create the jobs, the City can do its part to be a good partner by looking at the regulations, looking at the infrastructure, and looking at incentives we can put in place.

You can always build on that.

Right now we have a group of business people who are familiar with how the City operates and they feel comfortable giving us good feedback.

It’s very simple, because you know how long it can take to talk about a problem and come up with all these ideas, and nothing gets implemented. I am action oriented.

I want something to change. If we’re going to put the time in, both internally and with community members, I want it to make a difference.

LOOKING INTO CRYSTAL BALL First of all I want our city government to work better when I leave than it did when I came. I know it’s working better now, but there’s still more work that I can do.

SUCH AS? I want to see a vibrant city center – and that’s Old Town, Downtown, and the City Center Waterfront.

I’d like to see a Samish Way entranceway into the City implemented. We have a Samish Way Urban Village plan.

I’d like to see the completion of the Squalicum Creek reroute, and completion of our water mitigation bank in Bellingham.

I’d like to see us attracting the kind of businesses that pay a higher wage so people can live in the community.

And look at every way possible that we can make housing affordable to everyone.

WHATCOMBUSINESSALLIANCE.COM | 87

PERSONALLY SPEAKING: KELLI LINVILLE

Backdrop to the mayor’s life uring a Personally Speaking D interview, Bellingham Mayor Kelli Linville walked

through her early life history that set the stage for her to develop into a wife, mother, grandparent, college graduate (both undergrad and masters at Western Washington University) in speech and hearing pathology, a speech pathologist in the Bellingham Public Schools system, a business owner in antique furniture and coffee, and a state representative and the first woman mayor of her hometown Bellingham.

Here’s what she shared in painting a word-picture of her life path: I came from a working class family. A dad (Martin Kuljis) who had a fishing boat, The New Moon. And a stay-at-home mom (Bev) of three daughters – me, Kerri, and Kim. We didn’t have much money when we were growing up. But I had a very wonderful childhood with great parents who loved the three of us very much. Our parents built a house on a loan from the GI Bill, and they still live in that house.

Eventually, though, our dad started his own fish processing plant, Sea-K Fish, up in Blaine.

And then he was working 24 hours a day. The business became very successful. They operated out of San Francisco for almost 30 years in the winter months. They leased a dock down there. Both my parents would go. Mom and my aunt would cook for the crew. They’d take the Bellingham crew with them to fish and then sell their catch to the Japanese.

Ours was a traditional old Croatian family – so that meant no women on the boat. We got to 88 | BUSINESSPULSE.COM

go to the bay after the boat was cleaned up and have a picnic. I couldn’t work at the fish house and I couldn’t go fishing.

Our dad worked until he was 78 years old. He still doesn’t know how not to work.

[EDITOR’S NOTE:] Condolences to Mayor Linville. Her father, Martin Kuljis, died at age 89 on Feb. 20, a month after the interview for Personally Speaking in which Kelli detailed the strong influence her parents had on her upbringing.

I got married very young, when I was 19 years old. I put my first husband through Arizona State University where he went to school on a baseball scholarship. They won a national championship while he was there. Then we came back to Bellingham for a visit from Tempe, and we never left again…both happy to be back home. Obviously, we divorced, and he passed away on his 63rd birthday. Very sad.

I later married a wonderful man I knew in high school, Will Roehl.

He and his brother had a boat brokerage business, and they have a law practice. And we’ve owned a coffee business together (with other partners).

He ran for County Council from Lummi Island – he was a freeholder, living there as his home base. That exposed me to politics and led me to run and serve in the Washington House of Representatives through seven reelections – and two losses – for 17 years of service.

After Will was on the County Council, he was appointed by the governor to the Fish & Wildlife Commission and served there for 12 years.

I’ll finish this term (as mayor in 2020) at age 71. But, like my dad, I can’t imagine myself retiring either.

THE ELEPHANT IN THE ROOM I’d like to see our criminal justice system change. I care about that enough that I am sitting in on that alternatives task force. I go to all the meetings, I’m doing the ad hoc committee. I don’t usually do that level of detail.

But I have very strong opinions about what I think we should focus on – and also what could work and not work – from a broader perspective. What I can bring is looking at things…in a way that is practical.

Anticipating all the unintended consequences. I had to do that (as a legislator) because of the kind of district I represented.

REASONS TO CHANGE? To reduce our jail population.

We’d save money because we’re asking you (taxpayers) to pay for it. We could transform some lives so we’re not seeing a revolving door. We’ve been doing the same thing for 30 years, and getting the same results for 30 years.

We need an assessment of why you’re in jail. Is it because you sleep in a doorway, and you don’t appear in court when you get a no trespass?

Maybe we find a place to sleep rather than giving a citation that puts you in jail.

KING COUNTY MODEL Conservative King County is talking about a change in their system that puts the bad guys who should be in jail, in jail, and doesn’t use the jail as a mental health or substance abuse or homeless facility, which is not what it’s supposed to be at $90 a day.

YOUR ULTIMATE VISION? I had a wonderful childhood growing up here. The best honor I have right now is representing the city I love and grew up in. I want other people to have that same experience.

Serving Whatcom & Skagit countieS Since 2000 Since 2000, Market Street Catering has served over 1.75 million guests and catered 56,000 events with a 98% guest satisfaction rating.

Fresh is Best – The Market Street Catering team is 110% commited to bringing fresh, local, organic and seasonal foods whenever possible. We offer various service options to satisfy every aspect of your business needs.

on-the-go cater ing convenient delivery or pick up We offer an all-inclusive menu that includes everything from savory platters to scrumptious appetizers for your open house, retirement, holiday parties and staff luncheons. On time delivery service available with temperature controlled vehicles and courteous delivery staff.

Full Service Cater ing Personalized menu fit to your budget and style • Service staff and chefs on-site • Bartending • Rentals • Event Planning

1.360.647.4325

210 36th St. Bellingham, WA

www.marketstreetcatering.com

Where Your Best Business Events Begin ©2015 Haggen • 151211-04

Member Spotlight featuring The Woods Coffee CEO Wes Herman (left) and The Woods Coffee’s roaster, Shea Hagan, show off new stainless steel roaster at new openview tasting room called Roastery on Lakeway in Bellingham.

(Photo by Adam Navarrete, courtesy of The Woods Coffee)

“Roastery” opens a new picture-window view of coffee roasting and brewing

By Mike McKenzie

B

y mid-March, the doors will open on a first for coffee-crazy Whatcom County:

An open-view coffee roasting facility at The Woods Coffee’s location on Lakeway Drive (just east of I-5 exit).

Seating includes a coffee tasting bar in front of the all-glass partition between Roastery patrons and two processes: one, the company’s shiny new stainless steel roaster, and two, the 12-hour brewing of The Woods’ proprietary, certified organic Cold Brew.

“The expanded seating area will allow our guests to feel like they are right in the middle of all the action,” Herman said. “Our 300-gallon Cold Brew production area will feel somewhat like a micro-brewery.”

90 | BUSINESSPULSE.COM

Take a wild guess where much of the R&D took place for the Roastery concept. “Some of our staff and I frequently visited Starbucks’ new facility like this in Seattle,” Herman said. “We’d stay all day and take notes on good ideas, and what we might do different. I’ve always said openly that all of us in this industry owe a debt of gratitude to Starbucks for making possible all the opportunities we have.”

While moving the roasting operation, The Woods Coffee will retain its headquarters and in-house bakery in Lynden. The company’s director of coffee and head roaster is Shea Hagan. He said, “I’m very excited about these new steps of the Roastery and brew bar to keep expanding on quality and experience.”

Hagan is one of the highest cre-

dentialed roasters in the U.S. as a certified taster, judge, and barista trainer. He previously has worked at Illy in London, England, and for Portland Roasters and for Moka Joe’s when it was in Bellingham.

“We will focus on highest-quality, fresh seasonal coffees exclusively at Roastery as an espresso or pourover and to purchase by the bag,” he said.

Roastery also will stage cuppings. “We’re moving our very best baristas to Roastery,” Herman said.

“That will create seven or eight new jobs at other locations.”

The Woods Coffee also is opening its 18th coffee shop this month, and the first in Canada. In partnership with White Spot parent company Shato Holdings Ltd., the new location will serve at the Tsawwassen Springs Golf Club in British Columbia.

HURRY, TICKETS ARE SELLING OUT!

Join us on Wednesday, March 23, at 6 p.m. for the

30th

Annual

Business Person of the Year

Four Points by Sheraton Bellingham

AWARDS BANQUET

To reserve your tickets online,visit: whatcombusinessalliance.com Sponsored tables of 8 for $700

For 30 years, Business Pulse Magazine has recognized businesses and business leaders for their efforts in improving the economic and civic vitality of whatcom County. Once again, we pay tribute to the job creation, risk taking, entrepreneurship, and philanthropy that has enhanced the ecnomic and civic vitality of our communities.

TITLE SPONSORS

CO-SPONSORS

Member News Owner/President Colleen Unema points to a teardrop on the former logo of Q Laundry, expressing her feelings about losing the “Q” symbol. Enema yielded to a trademark infringement claim by a corporation and recently held a namechanging party to introduce the new brand of the laundromat—Brio Laundry.

(Photo courtesy of Brio Laundry and ioCreative)

Q GONE FOR GOOD. NOW BRIO IS ITS NAME-O. Alliance Laundry Systems Corp., the makers of Speed Queen washers, claimed a trademark on the brand “Q.” Therefore, Owner/ President Colleen Unema has rebranded her company to Brio Laundry on Alabama Street just off its intersection with James Street in the Sunnyland neighborhood.

Unema liked the sound and meaning of Brio (Italian noun: 92 | BUSINESSPULSE.COM

“enthusiastic vigor; great energy and confidence.” ). She said in a news release, “(Alliance) brought out the big corporate lawyers to file an opposition against us.” After consulting with her own lawyers, she believed she had a strong case with which to push back.

“Ultimately,” she said, however, “we decided to keep our focus on what we really love to do – run our small business with integrity and determination.

“And when you come down to it, our name is not the most important

thing about us. What we bank on is our quality of service, our devotion to sustainability, and to our awesome customers.”

Brio Laundry provides full service laundering with state-ofthe-art, high-efficiency washing machines and dryers, biosafe soaps and accoutrements. Machines can be programmed to text clients 10 minutes before a cycle is finished.

Brio also offers laundry “Drop and Dash,” services for outdoor gear, pet beds, and delicate items, as well as a special “Mud Club” self-

service area for coats, boots, tents, and other difficult to manage items.

“Brio sounds simple, clean, and energetic,” Unema said. “It fits our company vision as well as our general attitude. Our motto is ‘Faster, Cleaner, Better, Smarter’ because we believe that it’s possible to make even the most mundane of chores a pleasant experience.”

BARRON HEATING & AC MOVES SKAGIT SHOWROOM Barron’s website reports that the company recently moved from Mount Vernon into its Burlington location that has been in place around 30 years – the county’s oldest heating and fireplace shop.

A remodel is under way to showcase new models and energy efficient solutions. The showroom on Burlington Boulevard is one of three Barrons locations. The others operate in Ferndale and Marysville.

BOYS & GIRLS CLUBS HIRES CHIEF DEVELOPMENT OFFICER Erica Charbonneau joined the executive staff of the Whatcom County clubs recently to lead the development team in planning, managing, and implementing fundraising and resource development strategies.

Charbonneau came to Boys and Girls Clubs with more than 16 years of fundraising experience in higher education and in health and human services. Most recently she held senior-level positions at Willamette University and at Oklahoma State University. She spent more than 10 years fundraising in Whatcom County for Western Washington University, United Way, and Opportunity Council.

Boys and Girls Clubs of Whatcom County served more than 6,000 youths through after-school and athletic programs during 2015, according to Executive Director Heather Powell in a news release, and is in its 70th year. Recently the Bellingham branch collaborated with First Federal to raise money with the Mardi Grasthemed “Bourbon Street Bingeaux.”

WECU DONATES $60,927.28 TO LOCAL NONPROFITS

Chris Sullivan

Jessica Waggoner

VSH CPAS NAMES MANAGING PARTNER AND NEW PARTNER; PROMOTES TWO In news releases, the company named Chris Sullivan as a managing partner and Jessica Waggoner as a new partner alongside Sullivan, Bob Sytsma, Kathy Herndon, and Mark Roetcisoender.

Sullivan has 15 years with VSH, and as a partner the last five. She said she now has attained her goal “to actively operate a business while continuing to service my clients.”

Waggoner, uniquely the only non-CPA in senior management, most recently served as firm administrator after several roles since joining the group in 2002.

VSH also announced the promotion of two associates to Senior Tax status – Brady Bomber and Natalie Holm. VSH is a full-service Certified Public Accountant firm in the Barkley District of Bellingham.

For its fourth-quarter philanthropy, Whatcom Educational Credit Union donated $60,927.28 to 50 different organizations. The donations ranged from $250 to several groups, up to $115,000 for United Way of Whatcom County, and $2,500 each to Junior Achievement of Washington and the Whatcom Literacy Council.

WECU® has about 77,600 members and is a nonprofit financial cooperative. Requests for monetary donations go through an application process.

Applications and further information about the company’s Social Responsibility Committee: www.wecu.com, or write to Maya Hartford at maya.hartford@wecu.com.

The next deadline is May 6, 2016.

Please socialize with us on Facebook at both the Business Pulse Magazine page and the Whatcom Business Alliance page.

FOLLOW US ON FACEBOOK!

WHATCOMBUSINESSALLIANCE.COM | 93

BOOK EXCERPT: BOB PRITCHETT FROM START NEXT NOW

Start Next Now: How to Get the Life You’ve Always Wanted

Bob Pritchett, President and CEO of Faithlife in Bellingham

Step One: Identify Your Next What Do You Want?

He started the company at age 19. Formerly Logos Bible Software, it has grown to about 400 employees serving more than 3 million users worldwide. He’s a past winner of the Ernst & Young Entrepreneur of the Year award, and the Puget Sound Business Journal’s 40 Under 40. He blogs at BobPritchett.com, and publishes interviews on BellinghamWins.com.

We previously excerpted Pritchett’s first book, Fire Someone Today, published by Thomas Nelson in 2006 and translated into Korean and Russian. Your next read (now) is available at StartNextNow.com.

Before you can achieve the life you want, you need to figure out what that is.

Your goal may be about doing something. You may want to write a book, record an album, create a product, or launch a company.

Your goal may be about getting a position: You may want to be able to protect others, to teach, or to motivate.

Your next can reflect your desires or even your personality. You may find online tests for skills, attitudes, and personality to be useful in helping identify strengths you can build on or weaknesses you should watch out for.

Is there something that comes easily to you that others find difficult? Work with your strengths. It is easiest to distinguish yourself in the areas where you have unique experience or skills. Take a personal inventory of your strengths; what’s the most unusual among them?

What would happen if you invested more in developing and even showcasing this strength?

What things make you feel energized? What do you find yourself thinking about in your free time? Examine these and determine what exactly it is that you want to do to have the life you’ve always wanted. Envision what that will look like.

Maybe you don’t have a goal and don’t even feel a need for one. You can still move ahead by identifying a passion and choosing to pursue it at the next level:

94 | BUSINESSPULSE.COM

Bob Pritchett (file photo)

Record an album of your music, publish your writing, enter your photography in a contest, or get paid to do your hobby.

Figuring out what you want can actually be the most difficult part of getting ahead. Don’t worry—there isn’t a perfect answer, and you can always change your answer. If you can’t identify the big goal down the road, at least identify the next thing you want to try.

MONEY DOESN’T BUY HAPPINESS When people think about “getting ahead,” they often assume it means “making more money.” More money seems like success, and fame and power are classic side dishes. Of course we all want happiness—that’s a given.

It sounds better too: It’s easy to say we want “happiness” and know that it implies money too. Right?

I will tell you that studies have shown that money does buy happiness—up to around $75,000 per year.

That’s enough money to avoid many of the discomforts and inconveniences that come from not enough funds.

But after that middle-class level, more money doesn’t equate to more happiness.

I’ve made more money, and I have had the opportunity to spend time around people who have made a lot more money. While having money has its fun moments, I’ve come to believe that the Bible offers the best observation about money: “When prosperity increases, those who consume it increase.

So its owner gains nothing, except to see his wealth before it is spent.” —Ecclesiastes 5:11 LEB

In other words, you can only eat so much steak and lobster. The rich may order a higher-grade steak, but they start picking up the check for an ever-growing table. (An entourage may be a sign that you’re important, but it’s also a lot more mouths to feed.) If you get a chance to bring in more than a middle-class income, you’ll be amazed at how quickly you’re buying steak and lobster for other people. There’s nothing wrong with that, but if you want to hold on to happiness, you’ll need to make sure it’s generosity, not greed, that characterizes your feelings about money.

When most people think of wisdom on money they misquote the Bible and say, “Money is the root of all evil.” The Bible actually says, “The love of money is a root of all evil” (1 Timothy 6:10 LEB, emphasis mine).

(The Bible also says a lot more on the subject; it’s worth checking out.)

My success in business has given me a taste of money, fame, and power, and I know them to be strong temptations. But I’ve also found them to be hollow pleasures compared to doing something I believe is important alongside incredible people I love.

I hope you are pursuing something that will let you jump from bed each morning excited to start your day and then collapse into bed each night knowing you did something with purpose.

“Success is getting what you want. Happiness is wanting what you get.” – Dale Carnegie

WHATCOMBUSINESSALLIANCE.COM | 95

GUEST COLUMN: AGRICULTURE Randall Benson | Lean Operations Randall Benson is a management consultant, author, and Lean master based in Whatcom County. You can visit his blog “The Lean Heretic” at www.leanheretic.com, and his website at www.bensonconsulting.com.

The most important business law?

L

iebig’s Law was discovered almost 200 years ago by German botanist and university professor Carl Sprengel, who called it “The Law of the Minimum.” It states that growth is controlled not by the amount of resources available, but by the scarcest resource available (the limiting factor).

Justus von Liebig (pronounced LEE-big), a prominent German known as the “father of organic

chemistry,” popularized the law in 1840 and boldly renamed it after himself. No less immodest, Eli Goldratt restated the law in 1984 as the “theory of constraints” in his business book, The Goal. Goldratt was an Israeli physicist who became a business management guru.

Whatever you choose to call it, if you need growth – personal or business – this law is too important to ignore.

When your production processes, business processes, or project activities fall short in output, one process in the chain is invariably the rate-limiting factor (a.k.a., the bottleneck). Adding resources or increasing efficiency anywhere else will do nothing to drive growth.

The only way to grow is to find the bottleneck and do something about it.

In addition to limiting your ability to grow, bottlenecks cause other problems. They break up and unbalance flow, starving some processes while overwhelming others.

Bottlenecks cause build-ups of work in process, block flow, cause unnecessary queues, and require extra handling and storage.

Bottlenecks lower employee morale when they cause disruption and longer work hours and stress from trying to manage the bottleneck.

In one of my cases, a hospital emergency department suffered from a bottleneck at the “physi-

FOUR STEPS OF LIEBIG LAW Bottlenecks typically are easy to identify. Four simple methods: 1. Backlogged work – Find out were stuff is first accumulating, i.e., bogging down the process. Stuff could be in-process products, unfinished projects, unprocessed files, or even customers. The process that makes them start accumulating is the point of the back-up.

2. Waiting – Do you have a step in a chain of processes that experiences long wait times? That step may be the bottleneck. Is there a step that is always waiting for work to come to it? The immediate upstream step may be the bottleneck.

3. Utilization – Find the equipment or resource with the highest utilization. Usually, it will be at the bottleneck.

4. Value stream mapping – Make a map of the chain of processes. Identify the process with the longest cycle time (for each unit of output). Assuming you need more throughput, it will be the bottleneck.

96 | BUSINESSPULSE.COM

cian disposition” process. Patients, ready to be discharged, waited in exam rooms for a doctor to write discharge orders while those rooms were desperately needed. The result was an overcrowded ER with staff upset over constantly scrambling for rooms and physicians.

Managers often underinvest in bottlenecks. They’re misled by costaccounting rules that fail to account for the bottleneck phenomena.

Enter: Liebig’s Law. Cost accounting for bottlenecks should be different. Investments in nonbottleneck processes are essentially low-leverage investments — they make sense only if they save resources.

“The Law of the Minimum” (Liebig) or “The Goal” (Goldratt): Whatever you call it, if you need growth – personal or business – this law is too important to ignore…. the only way to grow is to find the bottleneck and do something about it.

unblock the bottleneck. Avoid the temptation to divert limited resources to improving other processes until you fix it. To increase throughput, consider these actions at the bottleneck: • Conduct focused problem solving.

• Move nonessential activities away.

• Make sure that everything coming in is free of defects.

• Assign the most productive staff and best technology.

• Reduce downtime like setups/changeovers, short stops and stops for maintenance.

• Add capacity such as labor, equipment and run hours.

Another example: A startup would need to spend more than $1 million to add a second machine to their bottleneck process. However, they could double the capacity of their existing machine by reducing cleaning time, fixing reliability problems, reducing maintenance stops, and extending the shift

hours. Using Liebig’s Law, they will start there before adding new equipment.

Use revenue per hour to measure your gains at the bottleneck. For example, a surgical center measured an additional $9,000 in revenue for each hour saved at their operating room bottleneck.

If you must temporarily live with a bottleneck, then decrease the input to the process by slowing down upstream processes. Prioritize upstream work so the most critical work arrives at the bottleneck first.

Take steps to make sure that not a minute is wasted at the bottleneck.

In product, service or project delivery, the scarcest resource is capacity at the bottleneck.

Focus on fixing it to unlock revenue growth and make your entire value chain more productive. All the same principles and exercises apply the same way to your personal output and growth.

You’ll find no law any more consequential than Liebig’s.

Whatcom Business Alliance Fostering Business Success and Community Prosperity

In contrast, fixing a bottleneck is a high-leverage investment. It increases revenue flow and makes better use of the resources throughout the chain of processes. The value of fixing a bottleneck is typically an order of magnitude larger than fixing other processes. Fixing those limiting factors justifies priority resources because it removes constraints from growth.

For example, a food manufacturer I’ve worked with made a value stream map and identified a packaging cycle time that took much longer than other processes. That was the bottleneck.

I wish we had more laws like Liebig’s. Use your resources to

Fostering business success and Community Prosperity.

Join today.

Call Jon Strong at 360-746-0407 or email jon@whatcombusinessalliance.com

Reach more than 50,000 business leaders in print and digital.

Advertise in Business Pulse Magazine.

M A G A Z I N E

The Publication of The Whatcom Business Alliance

WHATCOMBUSINESSALLIANCE.COM | 97

GUEST COLUMN: FREE-MARKET ENVIRONMENTALISM Todd Myers | Environmental Director Washington Policy Center The Washington Policy Center is an independent, nonpartisan think tank promoting sound public policy based on free-market solutions. Todd Myers is one of the nation’s leading experts on free-market environmental policy and is the author of the 2011 landmark book Eco-Fads: How the Rise of Trendy Environmentalism is Harming the Environment. His in-depth research on the failure of the state’s 2005 “green” building mandate receives national attention.

Centralized bureaucracies can’t address today’s environmental problems C

all it the bureaucratic version of the Peter Principle: Government expands to its level of incompetence. Bureaucratic solutions that worked to solve problems 40 years ago have expanded beyond their ability to address today’s problems.

The result is costly failure. That failure is obvious in environmental policy.

When the Clean Water Act was adopted in 1972, Cleveland’s Cuyahoga River represented the popular image of water pollution – so polluted it caught on fire. The image became emblematic of serious, industrial pollution.

The problem was fairly straightforward: A limited number of outfalls were causing most of the pollution. Facing a clearly defined problem with a limited number of polluters, the Environmental Protection Agency (EPA) addressed the problem and reduced water pollution.

98 | BUSINESSPULSE.COM

Fast forward to 2016. The pollution challenges we face are now dispersed, like little bits of brake dust, oil, and rubber from tires getting into the water. These little bits

First, as they expand, government agencies like the EPA move into areas in which they have little expertise or control….

Second, an agency that has limited resources but wants expansive powers will end up using its authority in random ways. of pollution aggregate in our water, harming marine life.

The Department of Ecology (DoE) and EPA have reacted to this new type of pollution by applying the 1970s model to 2016.

At the federal level the Obama

Administration is expanding EPA’s powers in a rule called the “Waters of the United States.” The rule would allow EPA to regulate all water down to small drainage ditches. They claim to need this authority to address the distributed nature of water pollution.

We can already see the problems.

First, as they expand, government agencies like the EPA move into areas in which they have little expertise or control. Witness the 880,000 pounds of metals the EPA accidentally dumped into a river in New Mexico despite warnings that their approach would fail. More recently, a regional EPA director resigned over the agency’s failure to protect citizens in Flint, Mich., from lead in their drinking water.

Second, an agency that has limited resources but wants expansive powers will end up using its authority in random ways. In northern Idaho a family was threatened with 10s of millions of dollars in fines for laying down gravel to build a house near a lake, despite having received permits. The EPA then argued that their decision could not be appealed.

The EPA’s behavior is symptomatic of what happens when agencies demand unquestioned authority.

Enforcement becomes random, picking on small landowners who cannot effectively defend themselves. The agencies take shortcuts to protect their power, blocking the civil liberties of those they target because it would cost too much to provide due process for the citizens they threaten.

These problems are inherent in attempting to use a 1970s approach to solve 2016 environmental problems. The good news, however, is that we have the information and technology to address distributed environmental problems, like the many little bits of pollution, in an effective way.

Take the example of taxis. Taxi commissions were created because riders could not negotiate prices and could not hold bad drivers accountable since they were unlikely to see the same driver again. Taxi regulations addressed this problem by negotiating rates and allowing riders to file complaints.

Today, we can do this from our phone. Uber and Lyft allow users to choose their price and hold drivers accountable. They provide distributed users information in the palm of their hand to make the best choice for them.

That same approach can be applied to distributed environmental problems. Rather than trying to control every last drainage ditch, resulting in random, punitive enforcement, we can now give individuals opportunities to make small changes that add up to big environmental improvements.

We cannot solve today’s problems with 1970s environmentalism. It is time to apply smartphone technology to the distributed environmental challenges we face today. Failing to do so will mean more failures like we’ve seen in Flint, in New Mexico, and more abuse of power without helping the environment.

SOLUTIONS AS UNIQUE AS OUR CLIENTS. Awards & Recognition Promotional Products Apparel & Embroidery

(360) 398-8714

laserpointawards.com

Serving Whatcom County for 20 years OPEN 7 DAYS A WEEK

WALK IN OR BY APPOINTMENT URGENT CARE • Illness and Injury Care • Laceration Care • Bone Fractures WELLNESS EXAMS Annual Sports & Physical Exams OCCUPATIONAL MEDICINE • Work Injury Care • L&I • DOT Physicals PHYSICAL THERAPY • Sports & Running Injuries • Work Conditioning MEDICAL MASSAGE X-RAYS ON SITE LAB DRAWS ON SITE

Monday-Friday 8:00a.m.-9:00p.m.

Saturday-Sunday 9:00a.m.-5:00p.m.

Patients will be accepted up to one hour prior to closing, or at the discretion of the clinic, in order to provide quality and compassionate care.

Dr. Richard Wei, MD, MPH – Owner & CEO

(360) 734-4300 4820 Meridian St. • Bellingham, WA

www.caremg.com WHATCOMBUSINESSALLIANCE.COM | 99

GUEST COLUMN: LABOR MARKET Erin Shannon | Small Business Director Washington Policy Center Erin Shannon became director of the Washington Policy Center for Small Business in January 2012. She has an extensive background in small business issues and public affairs. The Center improves the state’s small business climate by working with owners and policymakers toward positives solutions.

Beyond minimum wage The next battleground issue for labor regulations: shift scheduling

A

s demand for a $15 minimum wage and a mandatory paid sick leave policy continues to spread to cities throughout the nation, Working Washington – the union-funded organization responsible for the push in this state – has fired the opening salvo in the next battleground issue for labor regulations: shift scheduling.

Known alternatively as “predictive,” “predictable,” “fair,” or “secure” scheduling, such regulations require employers to provide workers with an advance schedule, usually set at 2-3 weeks. The fallout: • Along with the advance scheduling comes typically a “predictability pay” penalty if an employer changes a worker’s hours after the advance notice window.

• Often that includes guaranteed minimum pay for workers who are “on call” but not called in to work. Get that?

They get paid whether they work or not.

• These type of regulations 100 | BUSINESSPULSE.COM

also usually include provisions limiting how a business can utilize full-time and part-time workers.

Such legislation to remove employers’ independent decisionmaking rights is already under consideration in Olympia. And, Working Washington has kicked off their campaign officially by giving notice that our state capital is not the only city they’re targeting: “Just like Seattle workers led the way forward in the fight for $15, we’re going to lead the way to win one of the nation’s first securescheduling laws.”

San Francisco already has a “Fair Scheduling and Treatment of Formula Retail Employees Ordinance” on the books, which is one of a group of bills under the “Retail Workers’ Bill of Rights.” A bill modeled after the San Francisco law nearly passed statewide in California last year, and similar bills have been introduced in 10 other states in the last year.

The issue could soon become a federal initiative, as the U.S. Department of Labor (DOL) has signaled it may also jump on the predictable scheduling bandwagon.

Last year the administrator of DOL’s Wage and Hour Division said it is “looking very actively” into whether predictable schedul-

ing should be an enforceable right for workers under the Fair Labor Standards Act. If DOL were to make such a ruling, then predictable scheduling would become a federal administrative mandate that every employer in the nation would be required to comply with, or face fines and penalties.

While the specifics of predictable scheduling legislation change from city to city and state to state, the regulations typically include three major provisions:

ADVANCE NOTICE OF SHIFTS: Employers must give workers their individual work or on-call schedule in writing a set minimum of days before the first day of that work schedule. (San Francisco’s law mandates 14 days’ notice, the Olympia proposal calls for 21.) For new hires, employers must provide a good faith written estimate of the number of hours and the days and times the employee is expected to work or to be on call each week.

PREDICTABILITY PAY FOR SCHEDULE CHANGES: If changes are made to an employee’s schedule in less than the mandated advance notice, the employer must pay the employee an

extra “predictability pay” (typically 1-4 hours of pay) at the employee's regular hourly rate.

RESTRICTING PART-TIME EMPLOYMENT: Any extra hours of work must be offered to current part-time employees before a company can hire additional part-time employees or subcontractors, including hiring through the use of temporary services or staffing agencies.

A fourth provision requiring guaranteed pay (2-4 hours) for “on-call” employees who are not called into work is included in San Francisco’s new law, as well as some other proposals.

The labor needs of a business can change daily, and employers rely on scheduling systems that allow them to quickly modify employee schedules to fit their current labor needs. Worse, requiring employers to provide workers with their work schedule weeks in advance or incur penalties such as “predictability pay” makes it more difficult and costly for employers to respond to schedule changes that are the result of employees who call in sick or leave a shift early due to illness.

And under such laws, the government – not business owners or managers – determines whether a business and its customers are best served with a workforce comprising part-time or full-time employees.

Employers and workers need the flexibility to determine the staffing needs that allows them to deliver the best product or service.

Companies do not benefit from micro-management by one-sizefits-all government regulations that eliminate the flexibility needed by employers to adapt their workforce to changing market conditions.

Business owners and workers in Washington do not need more burdensome and inflexible mandates.

They need a business climate that encourages local innovation and job creation, and that benefits both employers and workers.

NEED A LITTLE SEED MONEY TO HELP YOUR BUSINESS GROW? Industrial Credit Union is proud to support local agriculture through flexible and affordable loans to farmers, ranchers and other value-added businesses.

Learn more about our SEED Program! Contact us today at BusinessRelations@IndustrialCU.org.

IndustrialCU.org | (360)734-2043

Cont #WHIRLS1090D9

WHATCOMBUSINESSALLIANCE.COM | 101

GUEST COLUMN: LABOR Don C. Brunell | Past President, AWB Don C. Brunell is a business analyst, writer and columnist. He retired as president of the Association of Washington Business, the state’s oldest and largest business organization, and now lives in Vancouver. He can be contacted at theBrunells@msn.com.

Can we keep manufacturing in America?

T

his year especially, we need to look long and deep into what it takes to keep manufacturing in the United States.

Our country has distinct advantages, including higher-quality product, shorter delivery times, well-trained workers, rising offshore wages, lower inventory, and the capability of more responsiveness to changing customer demands.

However, some glaring disadvantages exist: higher wages and taxes, mounting costs of excessive government regulations, and increasing electricity prices.

Those increasing costs, particularly for electricity, have dramatically impacted one of our region’s long-time industries – aluminum.

The latest example is the Alcoa Intalco Works anticipated closing in Ferndale where 465 people stand to lose their jobs.

Nowhere is the eroding manufacturing base more evident than here in Washington state.

RESPONSE TO BOEING: Our state and local politicians got a sobering reality check 15 years 102 | BUSINESSPULSE.COM

ago. Because of high costs and work stoppages, some of the final assembly work on Boeing’s 787 went to South Carolina, and Boeing outsourced key components offshore.

Three years ago, Washington’s legislature and Gov. Jay Inslee addressed manufacturing competitiveness when they pushed through $8.3 billion in tax incentives, provided some relief from overlystringent regulations, and enhanced worker training programs just to land Boeing’s new 777 carbon wing plant. That created more than 20,000 jobs at Paine Field.

Today we must remember that Boeing’s customers leverage the company for a part of the production. Cost matter, and the higher they climb, the more difficult it is to keep those high-paid manufacturing jobs here.

Washington has made progress in some areas of making our state more competitive, but our elected officials have become more selective and are bypassing opportunities.

For example, in Whatcom County the proposed Gateway Pacific Terminal project at Cherry Point would complement two oil refineries already located there (BP and Phillips 66) and would replace some lost aluminum smelter jobs.

However, that project might not happen because the governor has shown contempt for fossil fuels, particularly coal and oil.

In the last 20 years the state legislature implemented some

Washington (state) has made progress in some areas of making our state more competitive, but our elected officials have become more selective and are bypassing opportunities. hard-fought reforms to workers compensation and unemployment insurance, a sales tax exemption for manufacturing machinery and equipment, and spent millions for workers’ training programs.

INSLEE’S CLIMATE RULES: However, those manufacturers worry that if the legislature adopts Gov. Inslee’s climate change rules,

the accompanying costs of energy would likely force them to move elsewhere.

One of the key reasons the aluminum industry and semiconductor companies came to Washington was low-cost, reliable electricity. The same is true for carbon-fiber manufacturers, such as BMW in Moses Lake.

Even though carbon fiber is six times stronger than steel and 30 percent lighter than aluminum, it has been expensive to produce. A Rocky Mountain Institute study found that for carbon fiber-based autos to compete with steel-based vehicles at the same production volume, carbon fiber costs need to decrease by 60 percent.

Those rules also impact aluminum plants. Even though carbon fiber could become a replacement for aluminum in some aircraft, we have to remember that Boeing is ramping up its 737 production line to produce more than 40 a month.

All of those jets have aluminum

hulls.

The bottom line for manufacturers is the availability of adequate and reliable electricity at a competitive price – a determining factor in locating factories today.

Many smaller Washington manufacturers have kept their production here because they have highly-trained workers, better quality control, timing of component delivery, and can better protect their intellectual property or trade secrets. But they struggle with higher costs.

COSTS MATTER: A group called the Reshoring Initiative produced a list of 300 companies that relocated manufacturing facilities back to the U.S. or have chosen to remain here. They also list foreign companies that decided to build plants in America.

For example, Airbus is putting the finishing touches on an A-320 production line in Mobile, Ala.

When fully operational the plant will house about 1,000 workers who will assemble passenger jets that compete directly with Boeing’s best seller, the 737.

Airbus cites one of its reasons for locating in Alabama as the cooperation by government at all levels.

Whether some manufacturers stay or move depends largely on costs and how our local, state, and federal government leaders respond to those mounting competitive pressures.

The legislators can either reestablish a climate where the private sector is encouraged to invest, innovate, and create new and better products; or, rather they can smother manufacturers with more regulations, higher fees and taxes, and added time delays in siting plants.

The one lesson we have learned over the years is that companies will move to survive. They must, or they go out of business. Then we all lose.

GROW YOUR BUSINESS WITH CONFIDENCE! Virtual offices Reception services Print & copy center Public notary

All-Inclusive executive offices Co-working business lounge Executive meeting rooms

Call 360.685.4200 to schedule your tour!

1313 E. MAPLE STREET, BELLINGHAM, WA 98225 - THEGATEWAYCENTRE.COM - 360.685.4200

WHATCOMBUSINESSALLIANCE.COM | 103

GUEST COLUMN: LEAN AND PERFORMANCE Brad Owens | President, Northwest Jobs Alliance The Northwest Jobs Alliance is a local, nonpartisan, organization whose growing membership includes; business and labor organizations, civic and labor leaders, and thousands of likeminded individuals. All of whom working together, rally around our mission: “To promote the growth of family wage jobs in the context of sound environmental practice.”

Whatcom County Comp Plan should recognize Cherry Point as an important economic driver

A

s Whatcom County officials enters the final phase of updating the Comprehensive Plan, the County Council hosted a meeting that provided a forum for community feedback. More than half of those who attended to make their voices heard vocalized overwhelming favorability for supporting and enhancing development at the Cherry Point Industrial Area.

A pitched battle is waging over what will happen in the Cherry Point Industrial Area, and County officials will decide the outcome.

While some in the community seek to use the county’s plan review process to reduce and “de-industrialize” this area, that goal is short-sighted and most certainly not in the best interests of our economic health.

We need an approach that incorporates and supports the important role that industry plays in our county.

Moving forward, council members should bear in mind this show 104 | BUSINESSPULSE.COM

of support for the Cherry Point Industrial area, and remember the responsibility to consider the interests of all. Preserving and protecting jobs for our citizens in this fragile economy should be a top priority.

The Cherry Point Industrial Area is a major economic engine in Whatcom County, providing much-needed jobs and revenue. The wages at Cherry Point rank among the highest in the Northwest, paying an average of $114,000 a year – nearly three times the county’s average wage.

These good-paying jobs, complete with benefits, bring stability to our families. This investment in our families and their ability to make a good living is also an investment in our county, as the employers currently within the industrial zone constitute 9 percent of county’s wages, and directly and indirectly support approximately 15 percent of the county’s wage base.

The Industrial Area also holds tremendous promise for the future.

If the proposed Gateway Pacific terminal expansion project meets approval, the development would inject about $1.5 billion into our economy—the amount that private investors have pledged in order to build the terminals to full capacity.

We need look no further than

the recent news regarding Alcoa Intalco Works layoffs to see exactly how tenuous our employment outlook is. Those displaced workers will need the jobs that continued industrial work in this area would bring, and our larger community will only stand to benefit from the boost in tax revenue.

As we know all too well, education and social services could certainly use the additional resources.

Consider, then, that the three major industries in the industrial area constitute a significant portion of property taxes collected for schools, roads, and other services. If not for them, who would pick up the tab?

Other taxpayers or operating budgets within government would take the hit.

Our elected officials should consider all of this as they weigh the impact that this revision will have on the future of our county. They have the responsibility to act in the best interest of all constituents.

Clearly an overwhelming majority wants – and needs – the jobs and income that Cherry Point brings.

The final product of this revision should preserve jobs for our families and local economy, while ensuring that opportunity and growth are protected both today and well into the future.

Be free of fees with Freedom Checking No minimum daily balance No monthly service charge No transaction charges* Your business is important to us and our community. With our Freedom Checking Account you get a business checking account with simplicity and efficiency. And you can say goodbye to checking account fees.* Now that’s Business Savi.

*for the first 500 items processed each month

Burlington 360.707.2272 1854 S. Burlington Boulevard Bellingham 360.685.0080 2417 Meridian Street Suite 104

Mount Vernon 360.419.0300 208 East Blackburn Suite 100 Anacortes Loan Production 360.755.3436 1015 14th St Suite B

Oak Harbor Loan Production 360.720.2202 390 NE Midway Blvd B-107 SaviBank.com

GUEST COLUMN: HUMAN RESOURCES Rose Vogel | HR Programs for SHRM Rose Vogel is a vice-president and co-chair of the Programs Committee for the local Mt. Baker Chapter of the Society for Human Resources Management (SHRM). She is director of human resources for Anderson Paper & Packaging in Ferndale. Rose is a graduate of WWU-Fairhaven in Law, Diversity, & Justice and master's from Antioch University in Conflict Analysis & Engagement.

Getting credit where credit is due: the WOTC I

s your company gaining the advantage of its benefit from the Work Opportunity Tax Credit (WOTC)? It is a federal tax credit available to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment.

By employing them, you will have removed the barriers and become eligible for a significant tax break.

Good news came down just before last Christmas that can positively impact your 2015 business 106 | BUSINESSPULSE.COM

tax returns; on Dec. 18 legislation passed that provided a five-year extension for the WOTC, and included an additional target group of “long-term unemployed recipient.”

The other target groups: • Unemployed veterans and disabled veterans • Persons receiving temporary assistance for needy families (TANF) • Persons receiving food stamps (SNAP) • Community residents (living in Empowered Zones or Rural Renewal counties) • Ex-Felons • Persons receiving Supplemental Security Income Employers are eligible to earn a tax credit equal to 25 percent or 40

percent of a new employee’s firstyear wages, up to the maximum for the target group to which the new employee belongs.

Approximately $1 billion in total tax credits have been claimed annually under the WOTC program. Be sure to check with your HR manager and tax accountant for anyone on your team of employees that qualifies within a target group.

For more information and guidance on the target groups visit DOLETA.gov, and search for WOTC Target Group form.

Mt. Baker SHRM is hosting a luncheon this fall on the topic of WOTC. The presenter is a State WOTC specialist well versed in the topic. Visit to register for the event: http://mtbakershrm.shrm. org/events.

To locate Empowerment Zones, visit the EZ ocator at: http://egis.hud.gov/ezrclocator/.

WORK OPPORTUNITY TAX CREDIT TARGET GROUP ELIGIBILITY WOTC Target Groups Veteran

To be considered a veteran eligible for WOTC, an individual must meet these two standards: 1. Have served on active duty (not including training) in the U.S. Armed Forces for more than 180 days or have been discharged or released from active duty for a service-connected disability; AND 2. Cannot have a period of active duty (not including training) of more than 90 days that ended during the 60-day period ending on the hiring date.

To be eligible for WOTC, a veteran must also be one of the following: • A member of a family that received Supplemental Nutrition Assistance Program benefits (food stamps) for at least 3-months during the 15-month period ending on the hiring date; OR • Entitled to compensation for a service-connected disability and was: o Hired within 1 year of discharge or release from active duty, or o Unemployed for at least 6 months in the year ending on the hiring date; OR • Unemployed for: o At least 4 weeks (but less than 6 months) in the year ending on the hiring date, or o At least 6 months in the year ending on the hiring date.

Long-Term or Short-Term Temporary Assistance for Needy Families Recipient

Short-term Temporary Assistance for Needy Families (TANF) Recipient – An individual who is a member of a family that: • Received TANF benefits for any 9 months during the 18-month period ending on the hiring date.

Supplemental Nutrition Assistance Program Recipient (Food Stamps)

A Supplemental Nutrition Assistance Program (SNAP) recipient age 18-39 years who is a member of a family that received SNAP benefits (food stamps) for: • The 6-month period ending on the hiring date; OR • At least 3 of the 5 months ending on the hiring date, in the case of a family member who ceased to be eligible for such assistance under Section 6(o) of the Food Stamp Act of 1977.

Designated Community Resident

An 18-39 year old who lives within one of the federally-designated Rural Renewal Counties or Empowerment Zones. For additional information on Rural Renewal Counties or Empowerment Zones, please visit: http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/economicdevelopm ent/programs/rc.

A listing of current Empowerment Zones (EZs) can be found at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/economicdevelopm ent/programs/rc/ezcontacts.

Long-term TANF Recipient – An individual who is a member of a family that meets one of the following: • Received TANF benefits for at least 18 consecutive months ending on the hiring date; OR • Stopped being eligible for TANF payments during the past 2 years because a Federal or state law limited the maximum time those payments could be made, and the individual is hired not more than 2 years after such eligibility ended; OR • Received TANF benefits for any 18 months after August 5, 1997, and has a hiring date that is not more than 2 years after the end of the earliest 18-month period after August 5, 1997.

Vocational Reha ilitation Referral E -Felon

Supplemental Security Income Recipient Summer Youth Employee

An individual with a disability who completed or is completing rehabilitative services from a statecertified agency, an Employment Network under the Ticket to Work program, or the U.S. Department of eteran Affairs.

An individual who: • Has been convicted of a felony; AND • Who is hired within 1 year after the conviction or release date from prison.

An individual who received Supplemental Security ncome (SS ) benefits for any month that ended during the 60-day period ending on the hire date.

A 16 or 17 year-old youth who: st th • Works for the employer between ay 1 and September 15 ; AND • ives within one of the federally-designated Empowerment Zones.

For additional information on Rural Renewal Counties or Empowerment Zones, please visit: http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/economicdevelopm ent/programs/rc.

A listing of current Empowerment Zones (EZs) can be found at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/economicdevelopm ent/programs/rc/ezcontacts.

To locate Empowerment Zones, visit the EZ ocator at: http://egis.hud.gov/ezrclocator/.

Which employees do not ualify to e certified Some employees do not ualify the employer for the WOTC. They include: • Relatives and dependents of the employer, including sons, daughters, stepchildren, spouses, fathers, mothers, brothers, sisters, step-brothers or sisters, nephews, nieces, uncles, aunts, cousins, or in-laws • Former employees, regardless of how long it has been since he/she last worked for the employer (except for summer youth) • a ority owners of the business.

What ages do not ualify for the ta credit calculation Wages include all remuneration paid to an employee. However, to ualify, the wages must be: • Wages for which the employer pays Federal Unemployment Tax Act (FUTA) taxes • Wages actually paid by the employer, including those to on-the- ob training (O T) participants. f the O T worker is receiving subsidized wages directly from another party, or indirectly paid through the employer, then the wages do not ualify (although the hours worked for the employer count for the minimum retention period).

Note: Please refer to the respective RS forms for instructions on calculating and claiming the tax credit.

Proudly Serving The Community for 67 Years

Traditional T raditional Service Ser vice M tii M d N d Meeting Modern Needs.

LYNDEN s Ferndale 360-354-4471

Proudly Serving Whatcom, Skagit, Island and Snohomish Counties

Mount Vernon 360-424-4471 WHATCOMBUSINESSALLIANCE.COM | 107

LIFE IN THE TECH LANE Experts at Tech Help in Bellingham, a division of Big Fresh, provide answers to the questions that are trending among clients. If you have a tech question for our experts, send an email to getanswers@gotechhelp.com

Company Data Security

Begins With Employee Education

A

company’s greatest asset—its employees— can also be its weakest link when it comes to maintaining the security of company data.

According to a Trend Micro poll, the top reasons cited for data loss comes from four bad habits of small-business employees: opening attachments or clicking links embedded in spam email; leaving their systems unattended; infrequent password changes, and visiting restricted websites.

This negligence puts critical business data at risk from datastealing cybercriminals and malicious insiders. To help protect your company’s assets and data from 108 | BUSINESSPULSE.COM

breaches, follow these tips and best practices: • Make staff aware of the important role they play in security. One of the most important things you can do is to educate your employees in security best practices and to emphasize their important role in securing business data.

• Educate them to be wary of email attachments. One of the quickest ways to get the attention of a user is through emails. Those that contain subject lines of offers, notices, acknowledgements, or news must be verified before opening.

• Demand that employees use unique and strong passwords. Time and again, security experts have talked about using unique and strong passwords. Using weak passwords such as “password” or “1234”

is like giving hackers the keys to your accounts. Use a password manager, and enable two-factor authentication when available. Create and have employees sign a Security Policy that outlines requirements for passwords.

With proper training and assistance from experts, you can implement very practical and simple solutions, such as these tips, to ensure that your data is secure.

Remember that security is only one half of complete protection.

It’s vital that you also implement a proper backup strategy for your business.

Security is great for keeping hackers away from your data, but if your data is corrupted or lost, how can you recover it? You can only recover it if it’s backed up.

Tech Help’s

Favorite Gadgets

Mike really enjoys his Apple Watch - Not only is it a great health tracker but it allows the ability for him to quickly respond to texts, and he can pretend he is Agent 86 Maxwell Smart (from the old “Get Smart” TV show and movies) when answering a phone call from his wrist.

Compiled by Tech:Help / Big Fresh

Sarah loves her Surface Pro 2 because it’s tiny like a tablet, yet can do anything a large desktop computer can do.

Tracy really enjoys Alexa (the Amazon Echo) because it’s a very close step to having a personal digital assistant to do anything you ask.

Dylan loves his Fitbit - It tracks his sleep, steps, and it even GPS maps his hikes. Great for reviewing cardio and checking heart rate zones for workouts.

Doug, one of our owners, also loves his Fitbit for its ease of use, for its excellent app integration with tracking history, and for goal setting.

WHATCOMBUSINESSALLIANCE.COM | 109

SCENE ON THE STREET

SCENE

ON THE

STREET Before

After

COB said, F ‘Let there be light….’

airhaven Parkway on the drive between I-5 and Fairhaven shines brightly since the installation of LED street lamps by the City of Bellingham. The before and after photos, courtesy of COB, demonstrate the stark contrast in visibility as part of the citywide replacement of street lighting with the LED fixtures.

Photo and Essay by Mike McKenzie

COB partnered on the project with McKinstry, a design-build energy services company with a presence in 23 other cities besides Bellingham.

Funds from a Commerce Dept. grant ($500,000) and energy rebates provided $900,000 for the project. COB anticipates not having to replace the LED bulbs for 20 years, rather than the 4-6 life span of the previous lights, and estimates that the changeover will pay for itself in 12 years on energy, operational, and material savings.

Estimated savings include: • 50-60% energy.

• $240,000 annually costs.

• Yearly emissions equal to 63 homes.

• 18,000 light bulbs not energized.

The new lights use far less electricity, and provide “smart” technology. i.e., They will automatically dim when traffic is light or not present; alert the city when maintenance is required, and flicker to help first responders know locations of emergencies.

The differences are as easy to see as the streets.

Find out more about the City of Bellingham's LED streetlight project at: http://www.cob.org/gov/projects/Pages/Public%20Works/led-streetlights.aspx

110 | BUSINESSPULSE.COM

The

Business Team

that works as hard as you.

Your business thrives with the latest technology and responsive local service.

Partner with Peoples Bank and put our business services experts to work for you.

peoplesbank-wa.com/business-banking

Member FDIC

Providing local jobs since 1985 Donated to U.S. Food Banks: 2015 Ø Ø Produce grown on company land: 32,000 Pounds Ø Committed to fighing global hunger

360.815.5272 6069 Hannegan Rd. • Bellingham, WA 98226

M A G A Z I N E

Business Pulse brings you information regarding the people, companies, ideas and trends that are shaping our county. Business Pulse is the official magazine of the Whatcom Business Alliance (WBA) and is a quarterly publication.

The Publication of The Whatcom Business Alliance

SUBSCRIPTION FORM (Please print clearly)

Please complete and mail to: Or, subscribe online at: www.businesspulse.com

Business Pulse Magazine 2423 E. Bakerview Road Bellingham, WA 98226

Company Name:________________________________________ Title:_________________________ Full Name:___________________________________________________________________________ Mailing Address:______________________________________________________________________ City:______________________________ State:__________________________Zip:_______________ Email:____________________________________________ Phone: (___)_______________________ Subscription Type:

1 year ($22)

2 year ($40)

3 year ($56)

Payment: Check Enclosed Credit Card Credit Card Number:_________________________________________Security Code:_____________ Cardholder’s Name:__________________________________________Exp. Date:________/________ Signature (Required for credit card processing):___________________________________________________

ADVERTISER INDEX American Canadian Fisheries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112 Archer Halliday. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Barkley Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Back Cover Barron Telecommunications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Bellingham Bells . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 Bellingham Cold Storage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Birch Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Capstone Health Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68–69 Care Medical Group / Express Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 Chmelik Sitkin & Davis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .114 Chocolate Necessities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Data-Link West . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 DeWaard & Bode . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Faber Construction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Four Points by Sheraton Bellingham . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Gateway Centre Executive Suites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103 Haggen Market Street Catering. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 Hardware Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Heritage Bank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Industrial Credit Union . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .101 Invent Coworking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Larson Gross . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 LaserPoint Awards. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 Lyndale Glass . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Mills Electric. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Northwest Propane . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .107 PeaceHealth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Peoples Bank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .111 Perry Pallet Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Print & Copy Factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 ReBound Physical Therapy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Saturna Capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 SaviBank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .105 ServiceMaster of Whatcom County . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Skagit Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .115 Skagit Valley Casino Resort . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 VSH CPAs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Washington Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 WECU. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Whirlwind Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .101 Yorkston Oil Company Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 WHATCOMBUSINESSALLIANCE.COM | 113

Forward Thinking Skagit Bank is always looking ahead, providing customized financial solutions to help you stay on the right path. We are a local, independent bank, firmly rooted in the Northwest and serving our business communities since 1958.

We believe in Genuine Lasting Relationships.

We are Skagit Bank.

Genuine Lasting Relationships (800) 246-4402 | SKAGITBANK.COM

Come to Work Stay to Play

The Barkley Experience Barkley Village blends contemporary office space with exciting entertainment and dining options to create a dynamic Bellingham experience. Personal and professional amenities include; Class-A office buildings, a full-service grocery store, an eclectic range of dining options, retail shopping, entertainment, and residential living. Barkley Village is a unique destination that artfully accommodates every need.

Shop. Dine. Work. Play. Live. barkleyvillage.com For leasing information call (360) 671-6450 ext.103