July 2014 Vol. 27 No. 7
Est. 1988
An edition of the Kitsap Sun
Naturopaths Their approach to healing, healthy living | p. 4 Special focus on health care, pages 3-10
Inside Union approves Harrison contract | 5 Code skills land dream job | 26 Silverdale condo project planned | 30
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Business Calendar Tuesday, July 8, 15, 22, 29 Business Skill Workshop Series Join author Michael “Luni” Libes, author, entrepreneur and educator for this workshop on business planning. Learn about idea sharing, market research, financial planning, and pitching. Where: OfficeXpats, 403 Madison Ave. N, Bainbridge Island When: noon to 1 p.m. Info: www.officexpats.com/ from-business-idea-to-pitch Thursday, July 10 Heron’s Key Education Sessions for Seniors on Life Care Heron’s Key, a retirement community in Gig Harbor, will be hosting information sessions for the public to learn
about benefits of care retirement communities. Complimentary lunch. Ages 50 and older. See website or call for alternate dates. Where: McCormick Woods Golf Course, Port Orchard When: 10:30 to 1 p.m. Info: 866-992-9529, heronskey.org Sunday, July 13 The Citizens Climate Lobby and You Marty Bishop, a member of the local chapter of the Citizens Climate Lobby, will speak and lead a discussion about this nonprofit grassroots organization that focuses on national policies to address climate change. Where: Kitsap Unitarian Universalist, 4418 Perry Ave. NE, Bremerton
Kitsap County hires Corps of Engineers veteran as new Public Works Director The Kitsap County Board of Commissioners has selected Andrew Nelson as the new Public Works Director, and will begin work July 14. Nelson replaces Randy Casteel, who retired last October after 23 years. Nelson comes to Kitsap County with an extensive background in engineering, organizational development, and leadership, Andrew Nelson budget and policy development. He recently retired from the Army of Corps of Engineers, where he held the rank of colonel and was the deputy commander for the South Pacific Division that has a workforce of more than 2,500 people. Nelson managed military construction, environmental programs and civil works projects throughout the western states with a program in excess of $1 billion. He is known for his ability to collaborate and work successfully on projects that involve coordination with local, state and federal leaders and agencies. A native of South Dakota, Nelson received his master’s degree in civil engineering from the University of Washington and is a licensed professional engineer in the state of Washington.
Commuters needed to serve on ferry advisory committees The Kitsap County Board of Commissioners is accepting applications from commuters who use the Bremerton and Kingston routes of Washington State Ferries to serve on county Ferry Advisory Committees. Committee members represent riders to Washington State Ferries and the Kitsap Regional Coordinating Council, promoting improvements through interactions with those agencies and the state legislature. The committees meet quarterly and in advance of community meetings. For more information, go to www.kitsapgov.com/volunteer/boards/ or contact Kitsap County Volunteer Services at 360-337-4650 or rpirtle@co.kitsap. wa.us.
When: noon to 1 p.m. Info: citizensclimatelobby.org Wednesday, July 23 Edward Jones Financial Coffee Club Donald Logan, a local Edward Jones financial advisor, will be hosting a coffee club on the fourth Wednesday of every month.
Where: Edward Jones, 2416 NW Myhre Road, Silverdale When: 8:15 a.m. Thursday, July 31 Labor and Industries Offering Workshop to Help New Employers This free workshop is essential for all business owners and managers who don’t yet
have a full understanding of employer rights and responsibilities relative to the Department of Labor and Industries, or of the services and resources L&I provides. Please register — course reference number is 3-78-0084. Where: 500 Pacific Ave. #400, Bremerton When: 9 to 11:30 a.m.
Info: 1-800-574-2829, workshopsched@lni.wa.gov
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ALSO IN THIS ISSUE • People in Business, 11-12 • Columnist Julie Tappero on human resources, 13
• Business openings, 16, 18
• Columnist Dan Weedin on business strategy, 24 • Profile of gaming software developer Chris Gonzalez, 26 • Rolling Video Games business, 26
• Columnist Charles Keating on technology, 27
The Kitsap Peninsula Business Journal is published by the Kitsap Sun the first week of every month, and distributed to business addresses through Kitsap County, North Mason and Gig Harbor. Brent Morris, Publisher brent.morris@kitsapsun.com David Nelson, Editorial Director david.nelson@kitsapsun.com Tim Kelly, Managing Editor tim.kelly@kitsapsun.com editor@kpbj.com
Mike Stevens, Marketing Director mstevens@kitsapsun.com Jeremy Judd, Digital Director jeremy.judd@kitsapsun.com For inquires to receive the Kitsap Peninsula Business Journal at your business, contact Circulation Sales Director Hugh Hirata at 360-7925247 or hugh.hirata@kitsapsun.com. To advertise in the Kitsap Peninsula Business Journal, contact Michael Stevens at 360-7923350. TO SUBMIT NEWS: Tim Kelly, Managing Editor tim.kelly@kitsapsun.com 360.377-3711, ext. 5359 Standard mail postage to be paid at Bremerton, WA POSTMASTER: Send address changes to Kitsap Sun, PO Box 259, Bremerton, WA 98337-1413 © 2014 Kitsap Peninsula Business Journal / Kitsap Sun ISSN 1050-3692 VOLUME 27, NO. 6
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WELCOME | DAVID NELSON
And what do you do? In early June I spoke at the Career Day that Mountain View Middle School in Bremerton holds each spring. Some of the other guests and I were, admittedly, a predictable lot — firefighters, accountants, a preacher, real estate agents, a newspaper editor. The students were engaged and respectful, but it occurred to me that every career isn’t a teenager’s dream. It takes a lot of unsexy roles to keep an economy humming, after all. That’s why they call it work. After speaking to a few classes that morning I met Chris Gonzales, another Career Day guest. Gonzales described his job to me, and then I asked him to describe it again. He’s a software developer for a Bellevue company that makes a platform for video game development. Video games, it was naturally a popular choice among that crowd — but also an eyeopening conversation for me. I know there’s already a successful industry and enormous growth potential in the Northwest — and apparently a significant gaming event happening in Bremerton early in July — but I’ve always struggled to define it. Chris did that, for the kids as well as for me. Chris is a business leader playing an influential role in the Bremerton School Dis-
trict, helping guide STEM education and promoting the tangible career choice that may follow a student’s study of computer science. He is someone who can inspire a group of 13-year-olds to think big about their future. Chris’s experience also has me thinking about our region’s economic future. You’ll understand more after reading the profile on him in this edition, particularly how he creatively and doggedly sought out a way to do what he loved in a field that, at least to some of us, isn’t a familiar career path. That’s a version of the story I see in naturopathic medicine, which you’ll read more about in this edition’s spotlight on health care. That’s a lesser-known sector of a wellknown industry, now growing and adapting to changes in a health care landscape undergoing dramatic shifts for both patients and providers, with serious potential. Across the local economy I see this concept in engineering, where Olympic College is reporting phenomenal success in placing its engineering majors. The WSU degree holders from Bremerton aren’t only landing with obvious employers like Puget Sound Naval Shipyard and Intermediate Maintenance Facility, but also burgeoning trades like composites manufacturing and potentially the aerospace industry as local leaders court those manufacturers to Kitsap. And the green economy, with Bainbridge Grad-
COMMENTARY | MILT PRIGEE
“Chris (Gonzalez) is a business leader playing an influential role ... helping guide STEM education and promoting the tangible career choice that may follow a student’s study of computer science.” uate Institute preparing students for jobs I can’t always conceive, may be another driver as our culture becomes more focused on sustainability and resource management. I couldn’t tell the middle school students what an editor’s job will look like when they enter the work force, and I’d guess even the most confident business leader can’t precisely say what new industries will lead Kitsap’s business future. I don’t quite understand everything about the upcoming GAMCON (see Charles Keating’s technology column inside), but it tells me there’s a strain of software development talent that a smart community will mine to find its next best and brightest business leaders. Stories like Chris Gonzalez play great in front of an eight-grader with her whole life in front of her. They remind me that there’s enough vision, drive and ingenuity in this county to share something encouraging with the rest of us as well.
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HEALTH CARE
Getting to know patients, not just their symptoms Naturopathic physicians ‘look at the whole person’ By Rodika Tollefson KPBJ contributor
When patients come to see Dr. Kate D’Archangel at her Kingston office, they typically spend an entire hour with her. The naturopathic doctor not only talks with them about the concerns that brought them in, but tries to get a complete picture of what’s happening with them physically, mentally and emotionally. “I look at the whole person, not just at the symptoms, to figure out a treatment plan,” she said. “I talk to patients a lot and ask a lot of questions to get the full range.” This approach to looking at the whole person instead of the symptoms is what sets naturopathic medicine apart from traditional Western medicine — and is the best part of D’Archangel’s job. “That personal connection is important,” she said. “It makes the work more fulfilling for me.” Dr. D’Archangel (drdarchangel.
com) has been in solo practice as a naturopathic physician for more than a decade. For the first five years, she shared an office in Silverdale with another naturopath. She moved to Kingston, closer to home, so she can balance being a mom and a physician. Her practice is only open two days a week currently, and D’Archangel handles every aspect of the business herself, from scheduling patients to billing insurance. While that puts more pressure on her time, it gives her an advantage as well. “I like that patients come to me directly for anything,” she said. Much like medical doctors, or MDs, naturopathic doctors (NDs) receive four or five years of medical training that includes a clinical internship. The first two years of study are similar for both paths, said D’Archangel — who, like many other local NDs, attended Bastyr University in Kenmore (north of Seattle), the largest accredited naturopathic school in North America. Instead of doing their clinical internship at a hospital, however, Bastyr medical students spend two years at the university
teaching clinic. In Washington state, naturopathic doctors, or NDs, can serve as primary care physicians and are licensed to prescribe almost any medications, except for things like narcotics. But their goal is to use less invasive, more natural methods, including prevention and nutrition, herbal medicine and homeopathy. About half of D’Archangel’s patients come to her for primary care, including babies. Some travel from as far as Gig Harbor and Jefferson County. She treats conditions as broad as food allergies, high blood pressure, ear infections and gastrointestinal issues. But what D’Archangel loves the most is helping her patients achieve better health. “I like the educational aspect and teaching people about healthier lifestyles,” she said. “Good nutrition is a key. I spend a lot of time educating and working on the nutritional piece.” The overabundance of information about diet and nutrition — often conflicting — has made it more challenging to discern good advice from fads. D’Archangel’s role becomes that
“That personal connection is important. It makes the work more fulfilling for me.”
ON THE COVER Dr. Kate D’Archangel at her office in Kingston. Photo by Meegan M. Reid
Naturopathic physician Kate D’Archangel of the navigator, but it’s not simply about giving people the basics (such as eating whole foods, plants and high-quality animal products; avoiding processed foods and making sure to drink plenty of water). “Nutrition is based on each person’s condition,” she said. “It’s very individualized.” D’Archangel agrees that there’s been a growing interest in eating healthier but she said that doesn’t make it any easier for people to follow through on what they know is good for them. “People are busy and that’s a huge piece of it. They don’t have time to cook or shop that way, or they can’t afford it,” she said. When it comes to healthy lifestyle, D’Archangel practices what she preaches.
“You can’t tell someone to eat well and exercise and not do it yourself,” said the naturopath, who loves to garden and cook. An avid runner who did marathons in graduate school, she is outside, running, five days a week in all weather. “It’s a good way to start my day and get my energy,” she said. D’Archangel plans to add more hours to her practice when her youngest daughter enters kindergarten in two years. But for now, she is content devoting much of her time to family. And she’s found synergy in being a mom and being a physician. “I feel like I can work some and be a mom some,” she said. “Being a doctor makes me a more confident mom and being a mom makes me a more compassionate doctor.”
Naturopaths not signing up to be Medicaid providers By Tim Kelly Kitsap Peninsula Business Journal
The expansion of Medicaid in Washington state includes a change allowing licensed naturopathic physicians to function as primary-care providers for patients in the state’s Apple Health (Medicaid) program. In Kitsap County, however, naturopaths are passing on the opportunity to enroll as Medicaid providers. Washington is one of only three states that allow Medicaid patients to choose naturopaths for their care. The inclusion of naturopaths is regarded as one way to help meet the need for more primary-care physicians since many more people now have health insurance under the Affordable Care Act and its expansion of Medicaid, the federal program that covers mainly lower-income people. Among reasons cited by naturopaths for not signing up to take Medicaid patients are the costs involved in joining the system, and the low reimbursement rates.
TIM KELLY/KPBJ
Dr. Stephen Speidel, a naturopath in Poulsbo for 25 years, said it would not work financially for his practice to enroll as a Medicaid provider. “I am not taking Medicaid patients in my practice, despite an overwhelming positive response from those who have Medicaid,” said Dr. Katherine Barkshire of Bremerton. “The problem I am having is the cost of the infrastructure needed. I am a very small practice and have not yet
changed over to the systems required by the federal government to process Medicaid patients. “Naturopaths were not included in the financial assistance provided by the federal government to other health providers to upgrade their infrastructure.” She views the naturopathic care
option for Medicaid patients as a positive step, though. “Naturopaths are primary care providers in the state of Washington and already fulfilling the provider shortage issues,” Barkshire said. “I view allowing Medicaid patients to see naturopaths a plus for all.” A recent Associated Press article reported that “Officials with the state Health Care Authority say that about 200 naturopaths are enrolled in Medicaid either through the state, or through the five Medicaid-managed care plans in the state.” There are more than 800 licensed naturopaths in Washington. The website of the state Health Care Authority lists no naturopaths in Kitsap County as contracted providers for Washington Apple Health/Medicaid clients. Dr. Ruth Urand, who operates Sound Naturopathic Clinic in Poulsbo, said her clinic is not currently accepting Medicaid patients, primarily due to the additional overhead costs it would impose. “I have a very busy practice with
one employee and we share the administrative workload, which is already in overload mode,” she said. “With Medicaid it would be necessary to hire someone to handle insurance billing.” Dr. Stephen Speidel also said his busy practice in Poulsbo would not benefit financially from taking Medicaid patients, although like other naturopaths, he’s had requests from people with Medicaid coverage who are interested in receiving primary care. “I’m completely booked for 10 hours a day, several weeks out, so having access to a greater pool of patients through Medicaid at a lower reimbursement rate isn’t to my economic advantage at all,” Speidel said. “Naturally, though, my primary goal is helping people, not profit.” One way he does that is by offering discounts to military personnel and their families, whose TriCare coverage doesn’t cover naturopathic care. Ruth Bowen, office manager at SEE MEDICAID | 7
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HEALTH CARE
Union workers at Harrison approve new contract Pro Tech workers vote 98 percent in favor of new three-year deal By Tim Kelly KPBJ editor
After a year of protracted negotiations and a recent vote by union members authorizing a strike, the Pro Tech workers at Harrison Medical Center got much of what they wanted in a new contract, which was approved by a 98 percent vote of union members. The result was announced June 27 by UFCW Local 21. The two main sticking points in the often contentious talks were the length of the contract, and Harrison’s insistence on including language to prohibit the Pro Tech workers from
honoring a legal strike by another bargaining unit. The final contract gives the workers the three-year contract term they wanted, extending through March 2017. Regarding the strike language, the initial statement released by UFCW on June 21 said the contract maintains “the ability for union workers to stand with fellow union workers in the case of a dispute.” However, that was subsequently clarified; the contract does contain the provision Harrison wanted that prevents a so-called “sympathy strike” if another bargaining unit at the
Interim president named to take over at Harrison after Bosch retires Harrison Medical Center has announced that Joe Kortum has been appointed interim president of Harrison Medical Center, part of Franciscan Health System. He will replace Scott Bosch, Harrison’s president and CEO who is retiring at the end of July. Kortum brings nearly 30 years of healthcare leadership to his new role, most recently as president and CEO for the Columbia Network of PeaceHealth, which is also the parent company of Franciscan Health System. During his tenure, he led Southwest Medical Center in Vancouver, Wash., Joe Kortum through affiliation with PeaceHealth and oversaw adoption of new healthcare technologies. He also has led health care organizations in Arizona, California and Oregon. “We believe that Joe’s many years of hospital leadership experience will benefit Harrison while we seek a permanent president for the organization,” said Jim Civilla, chairman of Harrison’s board of directors. “Joe is successful in building both staff and physician partnerships in ways that build value and improve the patient experience.” Kortum will begin work at Harrison on July 7, and officially assume the role of interim president on Aug. 1. He will remain in the position during a nationwide search for a new president of Harrison Medical Center. The search began in late May, following the retirement announcement of Bosch. It is anticipated his successor will be named by this fall or early winter. “Joe was selected for this interim role based on his skill and ability to provide steady leadership during a time of tremendous change for Harrison,” said Joe Wilczek, Franciscan’s chief executive officer. “In addition to helping us respond to changes in health care policy on a national and regional level, he will ensure stability as we implement a state-of-the-art electronic medical record system in Harrison’s hospitals and clinics, and seek new ways to work together to improve the health of residents of Kitsap, Mason, Jefferson, and Clallam counties.”
hospital is on strike. UFCW spokesman Tom Geiger said the Pro Tech employees would still be able to participate in activities supporting other bargaining units, but only on their own time when they are off work. The union announce-
ment said the “long campaign was different than most Harrison negotiations over the past several decades and even included an overwhelmingly approved strike authorization. It was after that vote for a strike authorization that bargaining finally took a turn for
the better and a tentative agreement was reached.” Contract negotiations began last summer. As the talks reached an impasse, Pro Tech employees held an informational picket and a leafleting action outside Harrison in February, and distributed yard
signs supporting the health care workers that were displayed in front of homes around Bremerton and in other communities in Kitsap County. After union members SEE CONTR ACT | 7
voted June 10 to authorize a one-day strike, the bar-
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HEALTH CARE
Harrison’s move expected to bring opportunities Silverdale businesses could see growth, but there’s not a lot of available commercial space By Rodika Tollefson KPBJ contributor
There’s no doubt in the mind of the business community that when Harrison Medical Center moves its Bremerton hospital to Silverdale, it will create a positive ripple effect on other businesses. But how much impact remains speculation. “There’s a lot of questions on what the benefit will be for the community,” said Jennifer Zuver, president of the Silverdale Chamber of Commerce. “We’re just excited that we’ll have such a medical facility.” Zuver said that the employees who will work in Silverdale will likely shop and eat locally, but it was too early to know what the move means for the area. She added that Harrison CEO Scott Bosch will be the speaker at the August chamber luncheon, presenting an opportunity for the business community to ask more questions about the plans. For business owners like Monica Downen, there’s an inkling about the potential opportunities. “We’re staying busy at lunch most of the time and we’re definitely primed for some growth,” said Downen, who owns Monica’s Waterfront Bakery and Café in Old Town Silverdale with her husband, Mark. She said their lunch crowd is comprised largely of professionals, but noted that people who work at the hospital tend to stay on premises because of their busy schedules. Still, Monica’s may see increased opportunities for catering and deliveries — the café already delivers food to Harrison, including to the Bremerton campus. “I think it could be good for the general economy but it’s hard to say,” Downen said. “We’re just starting to
hear some buzz.” Merv Killoran, a commercial real estate agent with Reid Real Estate, has no doubt the change will have a big impact. “It would be a huge boon to Silverdale and Central Kitsap,” said Killoran, who’s been in real estate for more than 30 years. “There would be an influx of people, including all the staff needed to run the hospital. It should be a boon to retail establishments and restaurants, probably even the mall.” New businesses that want to bet on the economic stimulus that Harrison may bring would probably need to make their plans within the next two to three years. Even though the commercial lease rates in Silverdale are higher compared with Bremerton — $12 to $20 per square foot vs. $5 to $15 — there are not a lot of vacancies. For retail and restaurant businesses, some opportunities will come if plans move forward for a proposed strip mall off Clear Creek Way. But beyond that, there are few undeveloped commercial lots left in Silverdale. Gary Gartin, a broker with Bradley Scott, Inc., said not a lot of people are looking at Silverdale currently. He sees some potential impact on service businesses such as dry cleaners and restaurants, but the main impact will be on those that require office space. Already, Silverdale has a lower office vacancy rate than the county — Gartin’s February numbers showed a 9.07 percent vacancy in Silverdale compared with 15 percent countywide. “If Harrison makes this move, a lot of medical people in Bremerton will have to move to Silverdale,” Gartin said. “That would create an influx of office tenants.” There are some office va-
“Office space will be at a premium. Vacancies will be gone quickly.”
Office space near the new Harrison hospital to be built in Silverdale will be in high demand.
Gary Gartin, broker with Bradley Scott, Inc.,
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on impacts when a new Harrison Medical Center hospital is built cancies around the area, and a few buildings under construction. But, Killoran estimates, that space will be gone by the time a new hospital opens in Silverdale. “Office space will be at a premium,” he said. “Vacancies will be gone quickly.” The timing for a big hospital campus and more development appears to be good from an infrastructure standpoint. Although Har-
rison will likely have to do some traffic mitigation, other infrastructure such as water and fiber optic cable is already being upgraded. The Silverdale Water District is working on a major upgrade that’s been in the planning stages for about 10 years, said water district Commissioner Marcus Hoffman. In addition to adding more water reservoirs in several areas —
including Bucklin Hill and Anderson Hill — the water district is installing a system for reclaimed water. “We are building a substantial water system,” Hoffman said. Whatever the Harrison announcement means for Silverdale, Killoran believes things will start shaping up more when the hospital project becomes more tangible.
in Silverdale. “Once construction starts, it will get things rolling. That’s when it will sink in and you’ll probably see the biggest influx,” he said. “I have no doubt this will be a positive thing for Silverdale.”
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HEALTH CARE CON TR ACT | F ROM 5
care workers that were displayed in front of homes around Bremerton and in other communities in Kitsap County. After union members voted June 10 to authorize a one-day strike, the bargaining team and Harrison negotiators met for another round of mediated talks on June 17-18. That led to the contract offer that the union representatives recommended for approval by the Pro Tech workers. In a statement released by Harrison after the contract vote was announced, CEO Scott Bosch said “While these negotiations were difficult on everyone, we’re M EDICA ID | F ROM 4
Speidel’s clinic, also said many patients are government employees, and during last year’s federal government shutdown Speidel did not collect payments from any affected patients until they were getting paid again. One other consideration for Speidel is that Medicaid patients, although they could get office visits covered, would struggle to afford the full cost of a naturopathic care regimen. A naturopath’s approach to healing and good health de-emphasizes prescription drugs and may include vitamins, tinctures, herbs, etc., that would not be paid for by typical prescription coverage. Even though he’s not going to be a Medicaid provider, a major change is coming to Speidel’s practice that will help expand access to naturopathic care.
very pleased to have been able to come together on a contract agreement that is mutually beneficial.” The new three-year agreement also maintains the Pro Tech workers’ current health insurance plan with full funding for the length of the contract. Harrison had wanted to switch the employees to the hospital’s in-house health plan. The contract also provides previously agreed on wage increases and bonuses for the employees. The more than 700 Pro Tech employees in Harrison’s Bremerton and Silverdale facilities work as pharmacy staff, imaging technicians, nursing assistants and many other roles. He’s been in the same small office for 28 years, but is preparing to move in July into a new 7,000-squarefoot building on 10th Avenue just east of State Route 305. With the additional space, he plans to bring on another naturopath as well as other practitioners — an acupunturist, chiropractor, massage therapist and physical therapist. A former patient of Speidel’s who lives in San Diego and is considering a return to Poulsbo is interested in joining the practice. His credentials include a naturopath license and an M.D. degree. Speidel, 62, wants to spend more time researching natural treatments for diseases, and he plans to bring in young naturopaths who have finished their medical education and mentor them as they start their careers. “He wants to train the next generation of naturopaths,” Bowen said.
Recreational pot shops expect to sell out fast Marijuana Business Daily
Some growers in Washington state predict that retail cannabis shops will exhaust their inventories during the first weeks of operation, creating a similar situation to the one that played out in Colorado earlier this year. Attila Soos — owner of Verdavanti, a large licensed grower — said there is “no feasible way” that growers will be able to meet consumer demands. The first retail stores are slated to open in early July. In Washington, retail shop owners negotiate wholesale prices with the growers. Those negotiated prices will impact retail prices, which industry experts predict will be in the $15 to $25 per gram range.
UW Medicine forms health care network; Boeing signs up PRNewswire
SEATTLE — UW Medicine announced that it has formed an accountable care network with other healthcare organizations in Puget Sound and has entered into an agreement to offer healthcare services to certain employees of Boeing begin-
ning in January 2015. “This is a very exciting time for UW Medicine,” said Dr. Paul Ramsey, CEO of UW Medicine. “Working with a large employer like Boeing provides us with the perfect opportunity to achieve goals that support our mission to improve the health of the public. These goals, known as the Triple Aim, include improving the quality of care for individuals, improving health outcomes for the population as
a whole and reducing costs to improve the value of care.” Boeing selected the UW Medicine Accountable Care Network for its new Preferred Partnership option, which is available in the Puget Sound area for nonunion employees as well as some union-represented employees and some retirees. Eligible employees can stay in their current plan or they can select the new option, which allows them SEE UW MEDICINE | 8
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HEALTH CARE
Harrison now offers hospice care By Tad Sooter Kitsap Sun
Harrison Medical Center has begun offering beds for patients nearing the end of life. A small number of beds and staff members are now dedicated to inpatient hospice care at the nonprofit Bremerton hospital. The service is offered as part of new parent company Franciscan Health System’s hospice program. Franciscan began offer-
ing in-home hospice and palliative care in Kitsap in 2009. It serves about 60 patients daily in the county. Affiliation with Harrison last fall allowed the health system to expand inpatient hospice care to Kitsap. “It was an opportunity as we integrate to offer this service (Harrison) didn’t previously have,” Franciscan spokesman Scott Thompson said. The inpatient program at Harrison is expected to serve about 200 end-of-life
Hospice of Kitsap County adds veterans coordinator to staff Hospice of Kitsap County has announced that Lisa Bukata has joined the organization as the Veterans Program Coordinator to further develop the growing portfolio of veteran-related programs. Bukata spent the past six years in the funeral service field, specializing in foster- Lisa Bukata ing positive relationships with veterans’ families and organizations to ensure proper memorialization of their loved ones. A veteran herself, she spent six years as an officer after graduating from the Air Force Academy. She will coordinate Hospice of Kitsap County’s efforts to serve and honor veterans in our community through the We Honor Veterans program, Armed
Forces Day, Veterans Day and Memorial Day observances, and other relevant activities. Bukata also will serve as a liaison to military and veteran facilities. “It is my belief that all veterans should be cared for in a way that honors their service to our nation,” Bukata said. “I’m honored to join an organization that shares in that belief.” Hospice of Kitsap County is recognized as a Level 2 Partner in the We Honor Veterans program, coordinated by the National Hospice and Palliative Care Organization and the Department of Veterans Affairs (VA). This training from the We Honor Veterans Program has allowed Hospice of Kitsap County to provide end-of-life care for veteran patients. Bukata also will be promoting the agency’s Veteran-to-Veteran Volunteer Program, which recruits
U W M EDICI N E | F ROM 7
vide a better experience for Boeing employees and their families and be more affordable. The UW Medicine Accountable Care Network will focus on keeping people healthy and out of the hospital by employing evidencebased preventive measures to identify and treat underlying health problems early before they become chronic conditions.
to choose one of two networks for their care: either the UW Medicine Accountable Care Network or the Providence-Swedish Health Alliance network. Employees will make the selection during annual enrollment for benefits in November for coverage starting Jan. 1. This new service delivery option is designed to pro-
patients yearly. The hospital gradually rolled out inpatient hospice care this spring. “That seems to be working well,” Thompson said. Thompson said a benefit of offering services at Harrison is it allows existing patients to transition to hospice care without leaving the facility. “It offers people another choice and another option,” he said. Hospice of Kitsap County remain’s Kitsap’s larg-
est provider. The nonprofit maintains 15 inpatient beds at its center on Lebo Boulevard and supports a large home care program. Hospice of Kitsap County serves about 800 patients a year, according to Director of Development Michael Goodnow. Goodnow doubts the addition of inpatient services at Harrison will affect the organization, noting it receives many referrals from the hospital. “We’re still actively tak-
and trains volunteers with military experience to provide companionship to hospice patients who are veterans. “Lisa’s wealth of experience has already made her a key addition to our team,” said Michael Goodnow, director of development for Hospice of Kitsap County. “We see this appointment as a furthering of our organization’s commitment
to honor and serve the military community.” Hospice of Kitsap County provides comprehensive services in patient’s homes and assisted living facilities throughout Kitsap County. For more information about Hospice of Kitsap County, please visit www.hospicekc. org or call 360-698-4611.
ing Harrison patients,” he said. “... Ultimately, it’s the choice of the patient which provider they choose.” Group Health Cooperative also offers hospice services in the area for its members.
Consumer guidance is available at the Washington State Hospice & Palliative Care Organization website, www.wshpco.org.
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HEALTH CARE
Kitsap Sun honors medical professionals Inaugural Health Care Heroes event recognizes nine making a difference KPBJ staff report
The outgoing CEO of Harrison Medical Center, an advocate for medical treatment of the homeless, a nurse who cares for patients locally and internationally, and six other Kitsap County health care industry professionals were honored recently by the Kitsap Sun in the inaugural Health Care Heroes awards. A ceremony recognizing selected winners in nine categories was held June 19 at the Kitsap Conference Center in Bremerton. More than 40 nominations were submitted for the awards. The recipients, along with remarks from each nomination, are below. For more on the awards and recipients, visit www.kitsapsun.com/ healthcareheroes. Kurt Adams, chiropractor, Adams Chiropractic; Healthy Tomorrow. Dr. Adams, a licensed chiropractor and founder of Adams Chiropractic, has provided treatment and services to Silverdale patients since 1985. Carrie Bivens, co-director, West Sound Free Clinic; Volunteer Excellence. As one of the cofounders of the West Sound Free Clinic, which provides care to homeless individuals, Bivens volunteered hundreds of hours to make the clinic a reality, from organizing volunteers, completing paperwork, to rallying others to the cause. Scott Bosch, president and CEO, Harrison Medical Center; Administrative Excellence. Bosch, who has announced his retirement
after 40 years in the industry and a decade as Harrison Medical Center’s president and CEO, ushered the hospital through milestones including an affiliated with Franciscan Health System and recent announcement of expanded hospital facilities in Silverdale. Robert Caulkins, internal medicine specialist, Olympic Family Practice; Physician’s Excellence. Dr. Caulkins provides care coupled with a desire to understand his patients and put their worries at ease, following in the footsteps of his father, who was one of the first boardcertified family physicians in the country. Scott Davarn, emergency medicine physician, Harrison Medical Center; Kitsap County E.M.S. and Trauma Care medical program director; Emergency Medical Services. In addition to his role as an emergency doctor, Davarn oversees all aspects of comprehensive, coordinated emergency medical response and care throughout Kitsap County for the EMS and Trauma Care program. Dan Diamond, physician, Harrison Prompt Care; Quality of Care Lifetime Achievement. Dr. Diamond is the founder and director of the nation’s first state-affiliated medical disaster response team, and has traveled to the Philippines, Haiti, and New Orleans following Hurricane. He is also a recipient of the “Real Hero” award from the Red Cross, as well as the Washington State Governor’s Award for his work in Haiti.
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Glenda Gottfred, registered nurse, Harrison Health Partners; Nonphysician’s Excellence. Gottfred’s 30-year career includes holding hands of children, mothers and fathers in the United States, teaching and comforting TIMBERLAND BANK 4X8.500 KPBJ-JULY TIMBERLAND JR 30001656
patients in Africa, and a decade as an oncology nurse. Danielle Juarez, dentist, Fogle Family Dentistry; Dental Excellence. In addition to providing treatment and services to her regular patient base, Dr. Juarez has also made
herself available to the open-heart team at Harrison Medical Center, providing dental services when a cardiac patient has dental problems that interfere with successful open-heart surgery. Dan Frederick, occupational medicine physician, Naval Hospital Bremerton; Military Ex-
cellence. A retired Navy captain, Dr. Dan Frederick’s 24-year career has included nine duty stations as a medical corps officer, and a legacy of exceptional personal care and love for computer programming has led to the development of unique tools for the Navy to serve and care for patients.
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HEALTH CARE
Heart Association recognizes Harrison as Fit-Friendly Worksite Harrison Medical Center has been recognized as a Platinum-Level Fit-Friendly Worksite by the American Heart Association for helping employees eat better and move more. “Physical activity and employee wellness are important priorities at Harrison Medical Center. We are honored and excited to be recognized by the American Heart Association as a Platinum-Level Fit-Friendly Worksite,” said Scott Bosch, Harrison president and CEO. “We’re committed to providing the best workplace environment possible. This will benefit our employees’ health and produce even more positive results for our worksite overall.” Platinum-level employers: • Offer employees physical activity options in the workplace • Increase healthy eating options at the worksite • Promote a wellness culture in the workplace • Implement at least nine criteria outlined by the American Heart Association in the areas of physical activity, nutrition and culture • Demonstrate measurable outcomes related to workplace wellness Harrison encourages healthy eating and exercise habits among employees through its FreshStart program, as well as highlights employee success stories to inspire others. The program also offers discounts on activity trackers and gym memberships for employees. The Fit-Friendly Worksites program is a catalyst for positive change in the American workforce by helping worksites make their employees’ health and well-being a priority. Many American adults spend most of
their waking hours at sedentary jobs. Their lack of regular physical activity raises their risk for a host of medical problems, such as obesity, high blood pressure and diabetes. Employers face $12.7 billion in annual medical expenses due to obesity alone. The American Heart Association is working to change corporate cultures by motivating employees to start walking, which has the lowest dropout rate of any physical activity. Recognition is a critical component of the Fit-Friendly Worksites program. Employers that join this program qualify for official recognition by the American Heart Association. They are listed on the program’s national website. Qualifying worksites also have the right to use the program’s annual recognition seal for internal communications and with external, recruitment-related communications. “The Fit-Friendly Worksites Program offers easy-to-implement ways for organizations to help employees eat better and move more, which will help improve their health — and their employer’s bottom line,” said Cheryl Dale, executive director for the Puget Sound American Heart Association (AHA). “Even people who haven’t exercised regularly until middle age can reap significant benefits by starting a walking program. A study published in 1986 in the New England Journal of Medicine found that some adults may gain two hours of life expectancy for every hour of regular, vigorous exercise they performed.” For more information about the FitFriendly Worksites program and how it’s helping to improve the health of Americans by focusing on the workplace, call 253-2727854 or visit heart.org/worksitewellness.
State’s individual insurance market registers 30 percent increase over one year OLYMPIA — The individual health insurance market grew 30 percent in one year to more than 327,000 people in Washington state, according to new information reported by health insurers to the Office of the Insurance Commissioner. The latest enrollment numbers and other insurance market data also indicate that Washington has succeeded in reducing the number of uninsured by more than 370,000. The individual market total includes 171,286 people enrolled outside the Washington Health Benefit Exchange, Wahealthplanfinder, and 156,155 people enrolled through the exchange as of June 1. “The enrollment numbers from the insurers continue to show sustained growth in our individual health insurance market,” Insurance Commissioner Mike Kreidler said. “It’s also clear from this data that we’ve succeeded in evenly capturing all age groups, including the 18- to 34-year-olds.” At the end of 2013, more than 248,000 people were enrolled in health plans in Washington state’s individual market. Some 238,000 people received discontinuation notices from their insurers and had to find new coverage by Jan. 1, 2014. The Insurance Commissioner’s Office estimated earlier this year that 113,000 of those who received notices would qualify for subsidies and 30,000 would qualify for the state’s newly expanded Medicaid program, Apple Health.
No information is available on how many of the 327,000 newly enrolled people had coverage before or how many had to find coverage because their old plan was discontinued. The data also includes a breakdown of enrollment by age for both inside and outside the exchange, along with which level plan people selected and how these choices varied between urban and rural counties. Key findings include: • More people purchased individual plans outside of the exchange than through the exchange (171,286 vs. 156,155). • Enrollment both inside and outside of the exchange by age groups: — 28 percent over age 55 — 36 percent age 35 to 54 — 23 percent age 18 to 34 — 13 percent under age 18 • Silver plans were more popular among those enrolled through the exchange and bronze plans were more popular outside the exchange. • Seventeen health insurers filed more than 230 proposed health plans for the 2015 individual health insurance market. The average proposed rate change was 8.25 percent, marking the lowest average rate increase request in seven years. These plans, along with their rates and provider networks, are still under review. “People looking to buy their own health insurance or switch plans next year will likely have more choices,” Kreidler said. “This, along with today’s enrollment numbers, are more evidence that health reform is working.”
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PEOPLE IN BUSINESS Bainbridge Island downtown group hires new director The Bainbridge Island Downtown Association (BIDA) announced that Jerri Lane has joined the organization as executive director. She replaces Andie Mackin, who recently joined the Downtown Seattle Association. Lane most recently served as senior vice president of marketing at Visit Seattle. “I could not be more excited to live and work on this Jerri Lane beautiful island. I look forward to working with all the stakeholders to further the mission of the organization, so ably served by Andie,” Lane said. BIDA board president Tim O’Brien said, “I am very pleased to welcome Jerri to the Bainbridge Island Downtown Association team. Her extensive background in destination and hospitality marketing made her an ideal candidate for the position.” Lane has been an island resident for two years, and previously was director of sales and marketing at both the Sheraton Seattle Hotel & Towers and The Westin Seattle. Since 1998, Bainbridge Island Downtown Association (BIDA) has been recognized as an accredited Main Street Program under the National Trust Main Street Center and the Washington State Main Street Program. For more information, contact the association at 206-842-2982, or visit www.bainbridgedowntown.org or www.facebook.com/ BainbridgeIslandDowntownAssociation.
Silverdale-based nonprofit names CEO for US operations Silverdale-based nonprofit Children of the Nations (COTN) has named Elisa Goodwin as its new chief operating officer. Goodwin will oversee COTN’s operations within the United States, in support of its mission to serve impoverished children in Africa and the Caribbean. Until now, the management duties of COTN’s U.S. operations have been divided among several senior staff members. “For the past seven years, we have been searching for a person that can run the entire operation here in the USA,” COTN founder and CEO Chris Clark said. “Elisa comes with proven management experience and will enable COTN to grow in the next years in the U.S., creating opportunities for children internationally that we have not had before.” Before coming to COTN, Goodwin most recently worked as the head of the philanthropy team for national Christian radio station K-LOVE. She has worked in the nonprofit industry for the past seven years, after 20 years in banking — 15 of which were spent in senior leadership roles. Goodwin holds a bachelor’s degree in communications and journalism from Towson University, and an MBA from Clark
University. Children of the Nations is a nonprofit organization dedicated to raising children out of poverty and hopelessness so they can become leaders who transform their nations. The organization currently serves in Sierra Leone, Malawi, Uganda, the Dominican Republic and Haiti, providing care to orphaned and destitute children. For more information, visit www.cotni.org.
Gig Harbor sculptor to unveil Marine memorial for museum A commissioned sculpture created by Gig Harbor artist Mardie Rees for the Marine Corps museum in Quantico, Va., will be unveiled July 13 in a ceremony at the Tacoma Art Museum. The WWII U.S. Marine Raider Memorial — titled “Soul of the Forward and Faithful” — will be on display for free viewing in the Murray Family Event space at the Tacoma Art Museum from July 10-28. The sculpture unveiling kicks off the museum’s Summer Community Festival, from 11 a.m. to 5 p.m. on July 13. Rees is a renowned figurative sculptor whose statue of St. Anthony and Child graces the lobby St. Anthony Hospital in Gig Harbor. She also completed a commissioned sculpture last year of the founder of Shawnigan Lake School in British Columbia. Her WWII U.S. Marine Raider Memorial will be taken to San Diego in August for a Raider Reunion Banquet, before its permanent installation in November at the National Museum of the Marine Corps in Virginia. Photos of the sculpture may be viewed online at www.mardierees.com.
Kitsap Bank recognizes Employee of the Quarter Kitsap Bank announced that Rebecca Lantz was named Employee of the Quarter for the first quarter of 2014. Lantz has worked in the Deposit Support Department since April 2013, and previously worked as a fiRebecca nancial service specialist Lantz and a teller. She was selected for the award for her excellent customer service, outstanding job performance and for demonstrating exceptional teamwork.
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PEOPLE IN BUSINESS Liberty Bay Bank promotes two to new executive positions Liberty Bay Bank has announced the promotions of Rhonda Morris to senior vice president of operations, and Kathy Thibeault to assistant vice president and controller. Morris, a Port Townsend native who graduated from Bremerton Business College and studied business at Olympic College, has 32 years of banking experience. She started with LibRhonda erty Bay Bank in 2013 as Morris VP of operations and risk management officer. Morris has been responsible for the bank’s internal controls and compliance, technology, human resources and bank operations. “Rhonda is a valued member of the bank’s senior Kathy management team and her Thibeault risk management role in particular is critical to the ongoing success of our bank,” said Rick Darrow, president and CEO. Thibeault, a longtime resident of Kingston, studied at Olympic College and has over 35 years of banking experience. She started with the bank in 2012 as the senior accountant. Thibeault has been responsible for preparing the bank financials and reg-
ulatory reports, monitoring the bank’s general ledgers and maintaining recordkeeping on the investment portfolio. “Kathy demonstrates excellence and an ability to consistently meet the challenges presented to her. She is a talented and well respected member of our team,” Darrow said.
Paratransit recognizes employee’s 25 years Patricia Binns, the corporate safety, training and audit manager for Paratransit Services, was recently honored by the local nonprofit company for 25 years of service. Binns, who has been with Paratransit Services since 1988, is a certified Federal Transit Administration/Department of Transportation Driver Trainer, and a National Safety Council-certified instructor. She provides driver training supPatricia port for Paratransit ServicBinns es staff at all of the company’s public transit locations in Washington, Oregon and Northern California. Additionally, in Bremerton, where Paratransit Services operates a Non-Emergency Medical Transportation (NEMT) brokerage under contract with the State Health Care Authority, Binns teaches driver training classes for NEMT ride providers.
During a recognition ceremony at corporate headquarters in Bremerton on June 10, Paratransit Services president/CEO David Baker presented Binns with a “25 Years of Service” pin and other gifts, and expressed appreciation for all the contributions she has made to the company over the years.
New hire at Kitsap Bank will be merchant service specialist Kitsap Bank has hired Brad Gitch as merchant service specialist. Gitch joins Kitsap Bank with over 10 years of financial experience and was most
recently employed by JP Morgan Chase as a branch manager. He has a bachelor’s degree in Economics from St. Olaf College in Minnesota. “Delivering a consistent, top-quality experience throughout the organization is our priority at Kitsap Bank,” stated John Barmuta, senior vice president/retail banking officer. “Brad Brad Gitch brings a wealth of knowledge and proficiency to this role and we are very pleased to welcome him to our team.”
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HUMAN RESOURCES | JULIE TAPPERO
Should employers monitor what workers do off the job? It’s none of my boss’s business what I do on my free time, right? As they say, what happens outside of work stays outside of work. We have a right to privacy, and this is America, after all! Right? The answer is … sometimes yes, and sometimes no. All you have to do is pick up a newspaper to know that there are times that a company has a vested interest in their employees’ off-duty conduct. Examples include off-duty police officers who were drunk and abusive at a Seahawks game, school teachers moonlighting as exotic dancers, and off-duty firefighters beating up a homeless man. Clearly, there are times that a business cares about what their employees are doing outside of the workplace. And with social media, smartphones and the Internet being what they are, employees’ inappropriate private conduct can become public with lightning speed. There are several reasons that a business cares about employees’ private behavior. The company may have a code of ethics, setting standards of behavior for their workers that coincide with the business’s principles and values. They may have a crime-free workplace policy, permitting them to discipline or terminate employees who break the law. And finally, business success relies on a good reputation, and companies have a
vested interest when an employee’s conduct has the potential of damaging the company’s reputation. There are several categories of conduct that are commonly monitored by employers. One example is the use of illegal drugs, including both recreational and medical marijuana. As it stands today, employers may still maintain a drug-free workplace policy based on federal law. Pre-employment drug testing, random testing, and post-incident testing may reveal an employee’s use of drugs off-premises. An employer with a drug-free workplace policy may discipline or terminate an employee who violates this policy. Businesses are often in a quandary when an employee is arrested. Should the employee be terminated immediately? Bear in mind that we’re all still innocent until proven guilty. But if your employee is in jail for months awaiting trial, what should you do? Every situation is unique, but you should take into consideration the nature of the crime, potential harm to the business, length of time until charges are resolved or conviction attained, and relationship of the crime to the business. Commonly, businesses place the employee on paid or unpaid leave until the situation plays out. Even when an employee is found innocent, the very public and sensational nature of the accusation may be enough justification to terminate the employee. The controversial acquittals of George Zimmerman and
Casey Anthony are good examples of legally innocent people whose own reputations will make it hard for them to gain employment. As healthcare costs rise, more companies are implementing behavioral policies which impact employee health. The most common one is a policy to not employ tobacco users. While some states prohibit this, in Washington, cigarette smokers are not a protected class and may be discriminated against. Some companies prohibit employees from moonlighting without prior permission from the business. Such a policy can protect against situations such as the moonlighting teacher working as an exotic dancer. Companies just need to bear in mind that part-time jobs are on the rise, and in today’s economy, more workers need a second income in order to survive. Many states have laws regulating or prohibiting employers’ rights to regulate employees’ private behavior. They range from making it illegal to consider employees’ lawful activity, protecting smokers’ rights, protecting employees’ rights to engage in political activities, and protecting employees’ rights to carry a concealed weapon. Surprisingly, Washington state law is silent on all of these issues. However, that doesn’t give employers carte blanche to regulate their employees. Other organizations, such as the NLRB, will weigh in. The NLRB’s interest in this subject pertains to employees’ rights to protected activity. For example, companies may attempt to prevent employees from using social media to publicly disparage the business or their supervisors. If this public discussion involves other co-workers, for example, then the NLRB sees it as the same as employees discussing their working conditions or terms of employment over the water cooler, which is a protected activity. Em-
ployees are also protected against retaliation. They have a protected right to report such things as discrimination or sexual harassment, make a workers comp claim, be a whistleblower about their employer’s improper or illegal activities, and request accommodation for a disability. While it may be tempting to use social media to see what your employees are up to outside of work, remember that old saying, “Be careful what you wish for.” Once you have the information, what will you do with it? If you do decide to take some action, weigh your options carefully. You must have a strong business case to move forward, and at the same time ensure that you are not violating any laws. Today’s headlines contain many stories that highlight the dilemma companies face over employees’ private behavior. Donald Sterling may lose his basketball team because of comments he made in private and NFL teams struggle with how to handle players’ arrests for DUI, assault, and even murder. Your business may not have such a high public profile, but all it takes is one misstep or scandal to put you on the newspaper’s front page. Carefully craft your policies in your employee handbook, have your attorney review them, and ensure that your employees know what conduct is acceptable to you, both at work and when they are offduty. And if you do find yourself on the front page, walk thoughtfully and carefully through the process so the news is focused on the employees’ actions, and not on yours! • Julie Tappero is the president and owner of West Sound Workforce, a professional staffing and recruiting company based in Poulsbo and Gig Harbor. She can be reached at julie@westsoundworkforce.com.
PEOPLE IN BUSINESS Anderson Associates marks engineer’s 40 years with firm Art Anderson Associates of Bremerton is recognizing Vern Schager for 40 years of service at the engineering company. Schager joined Anderson 15 years before the company created the facilities division, and currently serves as an essential member of the firm’s construction management practice, working with federal and local government agencies to ensure successful
construction projects. Vern has a broad range of experience with different types of facilities, including government offices, courthouses, detention facilities, border stations and schools. As a young engineer in Vern Schager 1974, Schager’s first task at Anderson was to design the layout of a dining hall on an aircraft carrier. From there he went on to handle hundreds of projects, including serving as the change order con-
sultant for the construction of the new courthouse in Seattle, a highlight of his career. “Vern brings consistency, great client relations, loyalty and dedication to the AAA team,” CEO Ben Anderson said. “I wish there were more ‘Verns’ out there because I would hire them tomorrow.” For about 10 years in the 1980s and early 1990s, Schager did energy audits for Puget Power and ran it as a “business within a business.” Anderson vice president of facilities, Robert Henry, said “Vern has been in the ‘sustainability’ business longer than
anyone I know. Although the concept of efficient buildings, LEED, and similar green programs have really caught fire in recent years, Vern was doing energy audits and finding ways to make buildings more energy-efficient back before 1990.” “It has always been easy to go to the CEO and talk,” Schager said. “The management has given me a lot of autonomy in running projects.” Today, he is working on projects for Lockheed Martin, Kitsap Transit, the Bremerton School District and others.
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FINANCIAL FOCUS | EDWARD JONES
What can vacations teach you about investing? (Article for use by Edward Jones financial advisor Debi Tanner of Kingston.) Summer is almost here — which means it’s officially vacation season. You may be looking forward to “getting away from it all,” but, as you know, vacations actually require a fair amount of planning. And it might surprise you to learn that some of the efforts required for successful vacations can impart some valuable lessons in other areas of your life — such as investing. Here are some vacation-related moves that you may want to transfer to the investment and financial arenas: Secure your home. If you’re going on vacation for a week or so, you may need to take some steps to safeguard your home — stopping your mail and newspaper, putting on a timer to turn on lights, alerting your neighbors that you’ll be out of town, and so on. But while it’s important to secure your home today, you will al-
so want to help ensure it will be there for your family in the future, should anything happen to you. That’s why you’ll want to maintain adequate life and disability insurance. Know your route. If you are driving to your vacation destination, you will want to plan your route beforehand, so that you can avoid time-consuming delays and detours. And to reach your financial goals, such as a comfortable retirement, you will also want to chart your course — by creating an investment strategy that is designed to help you work towards those goals based on your specific risk tolerance, investment preferences and time horizon. Keep enough gas in the tank. As you set out on a road trip, you need a full tank of gas in your car, and you’ll have to keep refueling along the way. And to “go the distance” in pursuing your financial goals, you will need to have sufficient “fuel” in the form of investments with reasonable growth potential. Without a reasonable amount of
growth-oriented vehicles in your portfolio, you could lose ground to inflation and potentially fall short of your objectives — so, over time, you may need to “refuel” by reviewing your portfolio and rebalancing if necessary. Protect yourself from getting burned. If your vacation plans include a stay at the beach, you’ll need to protect yourself and your family from the hot sun — so make sure you’re all using sunscreen. When you invest, you can also get “burned” if you are not careful — especially if you are inclined to chase after “hot” investments. By the time you hear about these so-called sizzlers, they may already be cooling off, and, even more importantly, they just might not be appropriate for your goals and risk tolerance. Instead of becoming a “heatseeking” investor, focus your efforts on building a diversified array of quality investments appropriate for your needs. If you only own one type of financial asset, and a downturn hits that asset class, your portfolio could take a big hit. But by diversifying your holdings, you can help reduce the effects of volatility. Keep in mind, though, that diversification, by SEE VACATIONS | 15
Discussion about finances important for newlyweds (Article for use by Edward Jones financial advisor Jessie Nino of Poulsbo.) June is a popular month for weddings. If you’re getting married this month, you no doubt have many exciting details to discuss with your spouse-to-be. But after you get back from the honeymoon, you’ll want to have another discussion — about your finances. It might not sound glamorous, but couples who quickly “get on the same page” regarding their financial situation are actually taking a step that can help them immensely as they build their lives together. As you start talking about your finances, be sure to cover these areas: • Separate or joint checking/ savings accounts — Some couples create joint checking and savings accounts, others keep everything separate and still others find a middle ground — joint accounts along with smaller, separate accounts. There’s really no
one “right” way for everyone, but whichever method you choose, make sure you’re both aware of where your money is, how it can be accessed, and by whom. • Debts — Both you and your spouse may be bringing in debts, such as student loans or credit cards, to the marriage. You don’t necessarily have to do everything possible to get rid of these debts immediately, but you should set up reasonable payment plans that will allow you to lower your overall debt load so you can free up money to invest for the future. • Spending and saving — Newlyweds are often surprised to discover how different they are from each other in the area of spending versus saving. You don’t have to try to radically change each other, but you both need to be aware that your spending and saving decisions now have greater consequences than when you were both single. To illustrate: If one of you is more of a spender and is used to running up big credit card bills, SEE NEWLY WEDS | 15
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RETIREMENT PLANNING | JASON PARKER
Eat your vegetables first Marginal income tax rates are at an historical all-time low. Our government debt is at an alltime high and currently $17.5 trillion. Ten thousand baby boomers are retiring every single day. Social Security is expected to only be able to pay 77 cents for each dollar of scheduled benefits by the year 2033, and we have recently overhauled the health care system, which is likely to cost us all a lot of money as we shift health care responsibility from individuals to the government. These are just a few of the reasons that so many people are considering tax planning as part of their overall financial well-being, and these are some of the reasons why I’ve recently converted more of my traditional IRAs to Roth IRAs. One of the questions I am getting asked more and more these days has to do with the mechanics for conversions from a traditional IRA to a Roth IRA. As you probably know, a traditional IRA is typically funded with pretax dollars and
defers taxation into the future, while a Roth IRA is funded with post-tax dollars and future distributions are, in most instances, free from federal income tax. So should you be deferring taxes into the future given the reality of our current economic conditions or not? I recently consulted with a person who had made both pretax and post-tax contributions to his IRA. He was interested in converting only the post-tax portion of his IRA to a Roth. Before I get too deep into the weeds, let me explain that most individuals can make contributions to an IRA, but depending on the amount of income they have will determine if the contribution is tax-deductible in the year they make the contribution or not. A pretax contribution is money that was contributed to the IRA and was not taxed at the time of the contribution. Pretax contributions are what the majority of people contribute to an IRA. A post-tax contribution is where the individual already paid taxes on the income received and made a contribution to their IRA, but did not receive a tax benefit in the year of the
contribution. This usually occurs for high-income earners and they may also be precluded completely from being able to contribute to a Roth IRA. For example, a married couple filing a joint tax return in 2014 covered under a workplace retirement plan will have tax deductions phased out for contributions to an IRA when their income is between $96,000 and $116,000. That same couple not covered by a workplace retirement plan will have tax deductions phased out when contributing to an IRA when their income is between $181,000 and $191,000, and a married couple filing jointly with a modified adjusted gross income of more than $191,000 is ineligible to contribute to a Roth. If all of the money being considered for conversion to a Roth IRA was in traditional IRAs and was pretax dollars, then the rules are very clear and easy to understand. You simply pay tax on the amount you convert in the year you convert. Things get a little more complicated when you have both pretax and post-tax contributions to a traditional IRA, since it is not possible to convert only the
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• Investment styles — Both you and your spouse will unquestionably need to invest if you are going to achieve your goals, such as a comfortable retirement. However, each of you may have a different investment style — for example, one of you might be an aggressive investor, willing to take more risk for the possibility of greater returns, while the other is more conservative, ready to accept lower returns in exchange for greater preservation of principal. To pursue your strategy for reaching your objectives, each of you may have to compromise somewhat on your “investment personality.” To achieve this balance, you may need to consult
with a financial advisor. Finances are an important part of any marriage. By communicating regularly and working together, you and your spouse can build a solid financial foundation for your lives together.
these actions can clearly affect both of you. To avoid problems of this type, you will need to communicate clearly with each other. • Goals — It’s important for married couples to clearly establish their financial goals. Do you want to purchase a house? If so, when? If you’re going to have children, will you want to help them pay for college? When do each of you want to retire? And what sort of retirement lifestyle do you have in mind? By answering these and other key questions, you’ll be formulating a set of goals. From there, you can devise a strategy for attaining these goals.
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VACATIONS | F ROM 14
itself, can’t guarantee profits or protect against loss. As we’ve seen, some of the same principles that apply to creating a vacation may also be applicable to your investing habits. So, put these principles to work to enjoy a pleasant vacation — and a potentially rewarding investment experience.
post-tax contributions of a traditional IRA to a Roth IRA. The IRS has a pro-rata rule that requires you to add the value of all your IRAs and determines what percentage is post-tax vs pretax. Then when you convert dollars from your traditional IRA to a Roth IRA, a portion of the conversion is considered taxable and a percentage is not taxable based on the pro-rata formula. For example, you had a rollover IRA with $90,000 of pre-tax contributions and a traditional IRA with $10,000 of post-tax contributions. The IRS would require you to report $100,000 of total IRA assets. Then you divide $10,000 / $100,000 and find that 10 percent of the IRA assets would be considered tax-free upon conversion. So if you were to convert just the post-tax traditional IRA of $10,000, then the IRS would consider 10 percent of that IRA conversion to be post-tax money and 90 percent to be pretax. On the $10,000 conversion, $9,000 would be taxable as ordinary income and $1,000 would not be taxable. When consulting with
people on these rules they sometimes express frustration and feel this is unfair and double taxation because they have already paid tax on the $10,000 in the post-tax traditional IRA. I understand why people feel this way, however, that’s how the IRS rules work, and the IRS uses the sum of all your IRA accounts and does not view them independently of one another for the purpose of converting traditional IRAs to a Roth IRA. When people have both pre- and post-tax IRA contributions, they should track the basis of the posttax contributions in their traditional IRA using form 8606 when filing their taxes every year. This way they will know how much of their future distributions will be taxable vs tax-free when they begin taking money out of their retirement accounts. When I was growing up my dad used to teach us to delay gratification. To eat our vegetables first and dessert last. One of my favorite quotes is from Jim Rohn, who said, “All men will experience pain. The pain of discipline or the
pain of regret. The pain of discipline weighs an ounce compared to the pain of regret that weighs a ton.” Paying taxes now may not be fun, but I have a feeling paying taxes in the future might really be painful. Every one of us is lucky to live in the greatest country in the world and most people I know don’t mind paying their fair share of taxes. For a lot of people it makes sense to diversify future tax liabilities. In my mind, converting a traditional IRA to a Roth IRA is the equivalent of eating your vegetables first and saving the dessert for later. I personally really like the idea of a tax-free retirement. • Jason Parker is president of Parker Financial LLC, a fee-based registered investment advisory firm working primarily in wealth management for retirees. His office is in Silverdale. He offers annuities, life and long-term care insurances as well as investment services. Follow Jason’s blog at www.soundretirementplanning.com.
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BUSINESS OPENINGS
Restaurant’s special combo — Ph.D. plus BBQ By Tim Kelly KPBJ editor
RIC HALLOCK
Jean-Louis Gazabat, left, and Paul Elkins moved their real estate office to a Harborview Drive building they bought and renovated.
Gig Harbor real estate partners open office in newly renovated building What had been a partially vacant cinderblock building in deteriorating condition is now the spruced-up new office of longtime real estate partners Paul Elkins and JeanLouis Gazabat on the Gig Harbor waterfront. The pair held a grand opening event at Gig Harbor Real Estate EG in June that drew a lot of appreciative visitors. It also affirmed their decision not only to move downtown but to enhance the area with their extensive renovation of the small office building at 3022 Harborview Drive. “We basically took it down to the blocks and started over,” said Elkins, who grew up in Gig Harbor. He and Gazabat, who have worked together in real estate and property management for more than 20 years, weren’t planning to relocate their office to the site when they bought the property in late 2012. But the opportunity to house their business, Gig Harbor Real Estate EG, in their downtown building appealed to the partners. “We had a nice location where we were; however this location is right in the center of the hustle and bustle of downtown life,” Elkins said. “We thought it would be a nice, fun, lively place to be.” Their office doesn’t occupy all of the remodeled building of 1,200-plus square feet, so they might lease the remaining space if they find a tenant who’s a good fit. Elkins said they’ve gotten a very positive response from downtown neighbors and visitors to the upgraded appearance — inside and out — of their building. “People seem happy that we’ve improved the building from more of an eyesore to more of a highlight,” he said.
There’s not a long list of barbecue restaurants on the Kitsap Peninsula, but that’s fixin’ to change. Dickey’s Barbecue Pit will start serving ribs, brisket and other smoked fare the first week of July in Port Orchard, and it’s the first of five Dickey’s locations that franchisee Thomas Driver plans to open. Driver may seem an unlikely entrepreneur in the restaurant business. He retired in 2010 after a 27-year Navy career as a hospital administrator that included an assignment to Naval Hospital Bremerton, and his last assignment was as academic dean for the Navy’s Direct Commission Officers training program in Newport, R.I. He now owns Animal Intelligence Software, a company that provides electronic records systems for the veterinary field. He also has a Ph.D. in ministry and a law degree, in addition to his business degree. “My background is diverse,” said Driver, who lives in Port Orchard and formed TLD Enterprises, Inc. as the entity that will operate the restaurants. Like many others whose Navy careers brought them to Kitsap, he returned here to live after his retirement from the service. “To me this was home, and if I was going to do anything entrepreneurial, it was going to be opening a restaurant chain,” Driver said. His franchise agreement with Dallasbased Dickey’s Barbecue Pit gives him the entire Kitsap Peninsula as his territory to put in five restaurants. Driver said that after the first one opens in Port Orchard, his company plans to open additional locations roughly a year apart in Bremerton, Poulsbo, Silverdale and Gig Harbor. The new Dickey’s occupies the former Pizza Factory site on Mile Hill Drive by the
LARRY STEAGALL
Thomas Driver is the owner of a Dickey’s Barbecue Pit franchise restaurant that will open in early July in Port Orchard, and he plans to eventually open four more in Kitsap County. Towne Square retail center. “The community is screaming for diversity in restaurants,” Driver said. “I love barbecue. I miss the old Tony Roma’s that was in Silverdale; I used to take my staff to eat there.” Besides offering tasty food, his idea of a good restaurant is a comfortable gathering place for families or other groups to share a meal. “I love to be in a restaurant that has a feel of community,” Driver said. “I’ve always been intrigued to see how many people actually gather for fellowship or meetings around a table of food.” Diners are served cafeteria-style at Dickey’s, which offers a variety of meats that
New Safeway store with underground parking garage opens in Poulsbo Safeway’s eighth grocery store on the Kitsap Peninsula is now open in Poulsbo, at the northeast corner of the State Route 305/ Lincoln Road intersection. The new 59,000-square-foot store has underground parking, with elevator service to the main level, as well as surface parking. There is a pharmacy, a Starbucks and a U.S. Bank branch inside the store, and a gas station on the 6.5-acre site. Safeway announced a planned merger with Albertsons earlier this year, which if approved could result in some store closures. There is an Albertsons in Poulsbo near the new Safeway.
are hickory-smoked on site. The menu includes sandwiches and combo plates, as well as meat-topped baked potatoes and salads. Side dishes and desserts include traditional Southern offerings such as barbecue beans, fried okra and pecan pie. “You’ll see the smoker, and see the meat cut right in front of you,” Driver said. There’s also complimentary ice cream and a kids-eat-free promotion on Sundays. Dickey’s Barbecue Pit, a family-owned company since 1941 with more than 400 locations across the U.S., was named one of the Top 5 fastest-growing chains in 2012 by the industry publication Nation’s Restaurant News.
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BUSINESS OPENINGS
Leaving the farm for city life
“We’re going to kind of stick with what we’ve always done,” Lambert said, as the brewery ramps up to potentially produce 300 barrels of beer a year. “We’re hoping to boost production on the farm to keep up here. And we’re working with other farmers to bring in rhubarb, nettles, dandelions ...” Nettles? “It’s probably my favorite beer,” Lambert said of the Curly Tail Stinging Nettle Pale that uses 10 pounds (fresh weight) of nettles per barrel. Slippery Pig is also where you can try a pint of seasonals such as Rhubarb IPA and Dirty Tail Dandelion Bitter. As the brewery’s TIM KELLY Slippery Pig Brewery owner Dave Lambert sits in the taproom at the website says, “We are brewery’s new location, which opened June 27 in downtown Poulsbo. farmers first, and our beer reflects that.” The décor includes using old shipping pallets as tables. The Lamberts have brought touches of the farm to their new the crops grown by Lambert and his wife, joint in the city, along with flourishes of Shawna, on their farm. That will continue Poulsbo’s Little Norway heritage. at the larger brewery.
Slippery Pig Brewery moves to downtown Poulsbo By Tim Kelly KPBJ editor
Moving from the farm to town won’t change the Slippery Pig. Dave Lambert said the new downtown Poulsbo location for his Slippery Pig Brewery will have increased production capacity, but he plans to stick mostly with the same distinctive beers he’s been brewing for the last few years at Red Rooster Farm just outside the city limits. “We didn’t have any room for expansion up there,” Lambert said. “We’re actually going to more than triple what we can produce.” He also got tired of wrangling with the county over zoning issues when he had the craft brewery and a small taproom on the farm, another reason Lambert’s glad to be joining the downtown scene. “The city of Poulsbo has been absolutely amazing to work with,” he said. The new location’s grand opening was scheduled for June 27 in the renovated space at 18801 Front St. that last housed the Himalayan Chutney Restaurant. Slippery Pig is known for unique beers, often brewed not just with hops but with
Blue Goose Tavern has more elbow room at new location
Dave Tagert and Stacy Bronson spent more than a year working on remodeling and customizing the space for their new establishment. The Swimdeck held its grand opening on June 29 on Bay Street in downtown Port Orchard. LARRY STEAGALL
Swimdeck proprietors finally take down ‘Coming soon’ sign Port Orchard has seen its lineup of downtown places to eat and drink swell in recent weeks, with the opening of four establishments from one end of Bay Street to the other. The newest is The Swimdeck at 639 Bay St., across from the Port Orchard Pavilion. Owners Dave Tagert and Stacy Bronson were relieved and delighted to finally remove the “Coming soon” banner that had covered up the colorful, alluring logo in front of their place since last year. The former Kitsap residents, who also own the Devilfish Pub in Chehalis, did all the work themselves remodeling and cus-
“My wife’s interior decorating skills came out big time,” Dave Lambert said. “We’ve built a very large wraparound bar out of locally milled timber, from a big Doug fir tree we had on site at the farm,” he said. “It looks awesome on the bar top.” They also had a young local artist, Magnus Cain, make some recreations of old Norwegian woodcuts that adorn the restroom doors. He also painted a large Thor’s hammer on the taproom floor. About one fourth of the 4,600-square-foot space will be used for the brewery. That will leave enough space for the Slippery Pig to host live music, and Lambert said he wants to develop that kind of venue. There’s no kitchen and no plans to add one, but the taproom will stock prepackaged snacks from other local businesses — smoked salmon and cheeses from Crimson Cove, and CB’s Nuts. Lambert said they may occasionally host catered events such as farm-to-fork dinners, and patrons are welcome to bring in their own food. The taproom will have togo menus for ordering from downtown restaurants. After being closed for about a month to make the move, Lambert said he was looking forward to welcoming his old regulars to the Slippery Pig’s new digs. “I think a lot of people are gonna walk into this place and be like ‘wow,’” he said.
tomizing the 2,000 square-foot space for their “gastropub.” Among its distinctive design features is a back bar fashioned from the wooden stern section salvaged from a sunken Chris-Craft. After more than a year of working on the place as they split time between Port Orchard and Chehalis, they endured one more delay when a health inspector came in the day of their scheduled June 20 grand opening and put a kink in their plans over a sink that had to be added. The Swimdeck held its long-awaited grand opening June 29 with an island-themed celebration and barbecue, but it’s still a work in progress. The pub will offer a wide variety of craft beers, many from area breweries, once the more than two dozen beer taps are all hooked up.
The Blue Goose Tavern in Port Orchard occupied a small building in the Annapolis-Retsil area on Sinclair Inlet for decades, but it didn’t take long to move out once the owners decided to relocate to a larger site closer to downtown. On moving day in mid-June, it was all hands on deck as Blue Goose regulars helped owner Susie Geisler and her staff empty out the tavern and set up shop in its new location a mile away at 1604 Bay St., across from the Westbay Center. “We closed at 2 a.m. We packed everything up, and we opened at 10 a.m.,” Geisler said. “We’ve just had some wonderful friends, wonderful customers.” Geisler’s mother and aunt had run the Goose since 1982. Geisler’s parents owned the old Home Tavern, long closed. “Bars have been in my family for years,” she said. Five years ago, she and her husband, Curtis, bought the business. Everything from the old tavern, including its two shuffleboard tables, fits easily in the new 4,100-square-foot location. It has a backroom that Geisler plans to open for karaoke, amateur comedy nights and dancing. The Blue Goose also has a beer garden out in front. Customers have a deep loyalty to the Goose and the Geislers. As they were giving the new place a deep clean and remodel, many people stepped in to volunteer their time and skills. The old Blue Goose, near the Annapolis passenger ferry dock in an 1,100-square-
LARRY STEAGALL
Patrons enjoy outdoor seating at the new location of the Blue Goose Tavern. foot building that dates to the early 1940s, had been a bar for decades. Stalwart patrons included vets from the Washington State Veterans Home at Retsil who walked or wheeled themselves down the “Ho Chi Minh Trail” behind the facility. But there was little sentiment about swapping out for a larger locale. “It’s a lot bigger than the old one, and a lot nicer,” customer Woody Stanton said. “It’s a lot more open.”
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BUSINESS STRATEGY | DAN WEEDIN
When quantity trumps quality Last month was Fathers Day and it got me thinking a little bit about the role of parenting in general. I hear consta ntly from people I coach and mentor as well as those that I’m friends and acquaintances with that they aspire to spending “quality” time with their children. What is “quality time?” Is quality time in parenting attempting to schedule an hour of time with your children and trying to make an experience perfect, only to be irritated when it’s not? Is quality time forcing your children to play by your rules because it fits into your schedule like they are a client meeting? Or is quality time really just your search for affirmation that you’re a good parent? (Fear not, this isn’t my guide to parenthood. There is a business lesson here, so keep reading.) If you are a regular reader of my columns and articles, you know I espouse the theory that time isn’t a resource issue; it’s a priority issue. I believe parenting is not about “quality time,” rather it’s about “quantity of time.” It’s only through many hours of doing things you’d rather not be doing, sacrificing time meant for your own purposes, and the actual mundane times spent together that true “quality” emerges. Parenting is about the time of being together, not just the incidental and infrequent “glories” that come from graduations, weddings and honors. Quantity not only trumps
quality … it’s necessary for quality to even exist. Okay, here’s the business parallel you’ve been waiting for. Quality is one of those business keywords that have been immersed into our stream of consciousness since sometime in the mid-1980s. Quality control, quality assurance, and quality management have all been bandied about boardrooms and water coolers until the word has actually lost its meaning and believability. It’s time to start shifting your thinking away from quality and into quantity so you can actually reap the rewards you want. Consider these examples: You want to write a book? Success is not about quality of time sitting in front of your computer monitor and keyboard. It’s about forcing yourself to write at the hours that are often inconvenient, tedious and uninspired. If you’re waiting for that quality time to unleash your creativity, your book will never be written. Quantity of hours is what delivers results. You want to learn another language to advance your business opportunities globally? Great idea, yet the only way to become conversant is through immersion. Immersion takes quantity of time. If you’re waiting for that perfect moment to gain the best experience, then you will find yourself stuck repeating the only three sentences you know. You want to create new business revenue? You’d probably be amazed at the number of times I’ve heard people exclaim; “I’m waiting to launch my new campaign/idea/product for the right moment.” I’ve also seen people stall because
their idea isn’t yet to the “quality” they want. Marketing requires daily activities and in large quantities. It’s the quantity of time you spend marketing and meeting people that will ultimately determine whether your revenues are increased. Here are five business strategies that any professional in any industry can use to start transitioning their paradigm from quality to quantity to realize prompt, positive results. They are painless, powerful, and guaranteed for immediate improvement: • Abandon the notion of perfection. Perfection requires timing, serendipity and the alignment of moons. It also stalls momentum and great ideas. Business and life are about success, not perfection. • Discern what works. Figure out what works for your business success and then do it every day, whether you feel like it or not. • Get help. Too many of you try to be a lone wolf. Remember that wolves actually work best in a pack, and the lone wolves don’t generally survive. Using a coach or mentor that keeps you sniffing the right trail is a tremendous return on investment. • Prioritize. Not everything carries the same weight. How you prioritize your time will ultimately determine how much quantity you can allocate to those most important activities. • Increase quantity of time in key areas. Increase the quantity of time you spend in: investing in your professional development; marketing and branding your business; creating intellectual propert; meet-
Title company hires new marketing representative Pacific Northwest Title of Kitsap County has hired Mat Genuser as a member of its sales and marketing team. As the marketing representative covering the Bremerton, Port Orchard and Gig Harbor areas, Genuser will be managing accounts and working with builder, developer, realtor and mortgage/lender clients. Genuser has previously worked as a title and escrow marketing represenMat Genuser tative, as well as a mortgage broker in Oregon.
ing prospective clients face to face; rewarding yourself; living in the moment; and spending more discretionary time doing absolutely “nothing” with your family. As you’re reading this, I’m traveling cross-country in a car with my 25-year old daughter bringing her home from Ohio after seven years of university schooling that resulted in a master’s degree and a new job. I’ve calculated that the quantity of time to drive home will be about 33 hours. By the law of large numbers, there will be more “quantity” than
“quality” in the trip. But in the end, that quantity will create a quality that can be unmatched by any kind of preparation, planning or control. In fact, I surmise that the most memorable of times will be sitting quietly doing nothing but listening to Lynyrd Skynyrd, Billy Joel and The Eagles while staring at the redundant landscape motoring through Minnesota, North Dakota and Montana. Find where you need to beef up your quantity to increase the value you provide to others and eventually assure success, happi-
ness and quality. • Dan Weedin is a strategist, speaker, author and executive coach. He helps business leaders and executives to become stronger leaders, grow their businesses, and enrich their lives. He was inducted into the Million Dollar Consultant™ Hall of Fame in 2012. You can reach Dan at 360-697-1058; e-mail at dan@danweedin. com or visit his web site at www.DanWeedin.com.
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Cracking the code after college lands dream job Gaming software developer from Bremerton showing next generation of students path to technology career By Terri Gleich For KPBJ
Before Chris Gonzales left the University of Washington’s computer science program early to pursue jobs at start-ups, he still had to learn the technology skills he uses today as a software developer at Unity Technologies. He eventually got a political science degree, but to teach himself the computer code that is the foundation for every website and software program, he spent hours watching YouTube videos and visiting bookstores where he would page through manuals he couldn’t afford to buy. He honed his skills making websites for friends before eventually landing a full-time position in the industry and beginning the path that would take him to a dream job at Unity, maker of the cross-platform game engine used by Temple Run and Bad Piggies.
Now, as a member of the Bremerton School District’s STEM and computer science committees, the Bremerton High School graduate wants to help the next generation of students get their dream jobs. Unfortunately, he contends, many schools are focusing on the wrong things. “Schools do need to change,” he said. “The skills required five years from now are not known and by the time schools adapt their curriculum, the skills have changed.” Gonzales said educators should help kids find their passion and then teach them how to be lifelong learners so that they can adapt as technological advances bring new opportunities. The breakthrough opportunity for Gonzales’ employer, Unity Technologies, was the creation of the smartphone. The resulting proliferation of mobile devices meant that gamers always had a computer at their fin-
gertips, opening up a huge new market. Unity provides a widely used engine that game makers, ranging from amateurs to big companies, can use to make their games work on all platforms. In the past, Gonzales said, it took multiple teams to make a game work on gaming systems, desktop computers, iPhones and Android phones. “It’s really cool,” he said. “You can write the game once and people can play the game everywhere.” That’s especially important to small developers. Unity has free and paid levels. At a recent career day at Mountain View Middle School in Bremerton, Gonzales said half the students in his group of about 100 had heard of the international company and many had used it to create games. “For 12-year-olds to make games kind of blew my mind,” he said, adding that the most common questions
Towing around a load of fun Poulsbo man invests in mobile video game ‘theater’ in tricked-out trailer By Tim Kelly KPBJ editor
Chris Gunnell may be the coolest Little League coach and team sponsor ever — and it has nothing to do with baseball. How many teams have a coach who brings a video game wonderland on wheels to their end-of-season party? The Poulsbo Little Leaguers — including the coach’s 8-year-old son, Ian — got a freebie, but Gunnell invested in the Rolling Video Games trailer as a way to start his own small business. He rents the trickedout 32-foot trailer by the hour and tows it behind his pickup to parties like the one his son’s team had, and other special events where a mobile rec room with mul-
tiple flat-screen TVs and an array of the latest game consoles would be a hit. “Birthday parties are kind of the big thing, for sure,” Gunnell said. He also recently took the trailer Chris to ChehaGunnell lis, where it was part of a middle school’s end-of-year field day. Sounds like an awesome setup, but it hasn’t been all fun and games for Gunnell’s family the last few years. Ian, the youngest of four children, was diagnosed two years ago with a rare form of leukemia. The Poulsbo community rallied around the family with a host of fundrais-
ers that have raised more than $100,000 to help cover the enormous costs of Ian’s treatment, and the “Positive Fight Mode for Ian” campaign that Chris Gunnell started is ongoing. Ian’s cancer is currently in remission and he’s “doing really well,” his dad said, as he continues a chemotherapy maintenance regimen that will last three years. The shocking news about Ian’s cancer in the fall of 2012 was soon followed by another blow for the family. Chris Gunnell, who had worked for a dozen years as a corporate trainer in the pharmaceutical industry, was laid off from his job. “There wasn’t a lot of job opportunity at the time to stay in that field,” he said, and he wanted to keep his family in North Kitsap. “I finally told my wife, ‘we’ve got to do something, to make our own thing happen.’” SEE TR AILER |27
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Chris Gonzalez, a graduate of Bremerton High School who works as a gaming software developer for Unity Technologies in Bellevue, is helping shape the curriculum for today’s students as a member of the Bremerton School District’s STEM and computer science committees. he got after his presentation were technical ones from kids who wanted help de-bugging their games. Gonzales works out of Bellevue, where his job is to help game publishers market, promote and make money from their products. As a kid, the 28-yearold said he was like many of his peers who wanted to work in video games. But
somewhere along the way, he said, he was convinced by adults that it wasn’t realistic. He was advised to concentrate on careers that would fatten his wallet. Now that he’s turned his passion into a career, Gonzales is having a blast. “At its core, gaming is about spreading happiness,” he said. “It’s really about making people happy
for a minute or an hour. It’s really what makes me get out of bed every day.” Gonzales advises students interested in following in his footsteps to check out YouTube videos this summer and try their hand at coding. If they like it, he predicted, it will get them more excited about math and science. Game creators need to understand the physics of inertia and momentum, for example. Gonzales is working with Unity to make sure the Bremerton School District has the most up-to-date version of the game engine. He also wants to help students and teachers attend the company’s Unite 2014 conference in Seattle Aug. 20-22. Attendees will learn about new products and get to meet game developers and artists. Linda Hupka, director of STEM and career and technical education for the Bremerton School District, said Gonzales is her go-to guy when she has a question about anything related to the computer industry. SEE CAREER |27
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TECHNOLOGY | CHARLES KEATING
GAMCON showcases what STEM skills can produce On July 5 and 6, our first GAMCON (Gaming, Anime and Music Convention — www.gamconvention.com/) is coming to the Kitsap Conference Center at Harborside in Bremerton. This local incarnation is similar to those which enjoy huge success in other parts of the country. West Sound Technology Association (WSTA) is a premier Kickstarter backer of this event, thanks to a generous donation on its behalf by Professional Options, a longtime WSTA supporter and sponsor. Besides the entertainment value of cool games, local artists and musical talent, gaming in particular offers opportunities as a significant contributor to many other areas of the economy. For example, you may know that Washington state is a worldwide
leader in computer gaming development, in synergy with the huge presence of software and technology firms in the Puget Sound region. Regional strategies for our economy involve connecting our talent and firms with those throughout the state, and beyond. Gaming technology also has crossover applications with education, mobility and application development. It is an introductory tool used to teach elementary students the foundations of programming and control. Understanding and manipulation of 2D and 3D graphics develop skills for working with visual data. When Paulo Younse, a dynamic Mars robotics engineer from NASA Jet Propulsion Laboratories, recently came to visit students on Bainbridge island, he explained that one of the core skills future engineers need to master is Computer Aided Design and graphics manipulation. Robotics will also play an increasing role in
the economy as this and advanced manufacturing transform the creation of new products. Music and Art also develop creativity and “whole brain” techniques. Art, when combined with the other STEM (Science, Technology, Engineering and Math) disciplines, becomes STEAM, supporting the full range of skills for innovation and entrepreneurship. WSTA is continuing its leadership role in helping support increased student access to STEM and STEAM initiatives, including events such as GAMCON. Our efforts over many years to lobby for STEM curriculum and drive an innovative high-tech economy — in partnership with heavy hitters like Technology Alliance, Code.org, Olympic College and DigiPen — are paying off. Washington state now supports IT courses for high school graduation, and Olympic College has a four-year Information Technology degree program beginning this fall. Since last year, our working partnership with Code.org and DigiPen are also netting exciting results. Bremerton and Bainbridge Island school districts are two of only a select few around the nation with ongoing Code.org partnerships to increase access to programming skills. Last year 5,000 Kit-
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While looking through Entrepreneur magazine’s annual issue on best franchises, he read about a different video games company, but was put off by the high franchise fees. “I started looking around on the Internet, and I found Rolling Video Games,” Gunnell said of the Tennessee-based company that sells fully outfitted gaming trailers to independent owners. His new business, Puget Sound Rolling Video Games, will get some exposure at GAMCON in PHOTOS COURTESY CHRIS GUNNELL Bremerton on July 5-6 at the Puget Sound Rolling Video Games has a 32-foot trailer Kitsap Conference Center. Gun- (above) equipped as a mobile gaming theater. The interinell signed up as a co-sponsor of or (right) has flat-screen TVs and gaming consoles that the event, billed as “Bremerton’s can be used by up to 16 players. first geek convention,” which will showcase and celebrate creativity in gamduring the weekend event, inside and outing, anime and music. side of the “mobile fortress of fun.” The He plans to run gaming tournaments trailer is equipped with four wide-screen CA R EER | F ROM 2 6
As the district beefs up its computer science offerings, Hupka said Gonzales is giving her invaluable information on what software to buy and what to avoid. He also gives her ideas on the best career pathways for students. “Chris is helping me to develop a really well-rounded, complete computer and IT program and not just what’s popular at the moment,” she said. Just as reading and writing were the keys to success
in previous times, Gonzales said understanding computer code is paramount for the future. “Software is significantly reinventing every industry,” he said, including music, movies, communication,
news, cars and health care. “Software is all around us and you should really know how to read it. If you don’t, you’re going to have to pay somebody a lot of money.”
TVs that are networked so up to 16 gamers can play against each other on Xbox 360, PS3 or Wii.
sap students participated in Hour of Code and we’ve teamed up with Microsoft and Voices for Innovation to involve even more this year. A WSTA, DigiPen, Olympic College and West Sound Skills Technical Center partnership yielded ProjectFun summer workshops in digital gaming (and instructor jobs!) that will be held from July 14 to Aug. 1 at Olympic College’s Bremerton Campus. Special thanks go to Professional Options for not only donating WSTA’s top sponsorship for GAMCON 2014, but for providing tablets for our booth so kids and others can experiment with Scratch and Hour of Code programming. So when you come to GAMCON 2014 for the entertainment value and fun, know that the future is filled with this and more than meets the eye. See you there! • Charles Keating is president of Keating Consulting Service (www.kcsco.com), an IT consulting firm serving global clients since 1983. He is also a partner in K2 Strategic Solutions (www.k2strategic.com) and Professional Options (www.professionaloptions. org), and current president and co-founding member of West Sound Technology Association (www.westsoundtechnology.org). There are two more TVs covered by an awning on the trailer’s exterior, and Gunnell is adding gaming systems for use with those. “We’ll have that hooked up for GAMCON, for sure,” he said. It took the last of the family’s savings and a cashed-out 401(k) to invest in the $50,000 trailer — all the community donations are used only for their son’s medical care. “It’s kind of scary to do,” he said, “but one of the things about living your worst nightmare with your child having cancer, everything else is not so scary.” Gunnell, who’s also doing occasional consulting work in his previous field, said he hopes to find more ways to utilize the Rolling Video Games trailer, perhaps setting it up for weekly gaming nights at pizza places. “I’m also thinking about how we can make the trailer more of multimedia center for virtual field trips for schools,” Gunnell said. “We’re excited about the business,” he added. “It’s a fun thing, and we’re excited to expand into different areas with it.”
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BUSINESS BRIEFS Bainbridge keeps 5-foot clearance in updated sidewalk ordinance Bainbridge Island will keep a minimum sidewalk clearance of 5 feet in front of businesses for pedestrians walking on Winslow Way. The City Council, by a 4-3 vote at its June 9 meeting, approved an updated ordinance for the use of sidewalks for cafes and retail displays on downtown’s main street. The three council members who voted no wanted a slightly wider clearance of 6 feet on sidewalks. A group of about 20 downtown business owners and residents took part in a recent roundtable discussion hosted by City Manager Doug Schulze to review the sidewalk ordinance that was presented to the council. The ordinance was updated after the city received several calls from residents concerned about pedestrian access, visibility and safety regarding sidewalk use by Winslow businesses.
Architects from Bainbridge designing Friday Harbor’s new waterfront site Bainbridge Island firm BC&J Architecture has been selected to design the Port of Friday Harbor’s new Spring Street Landing building, which was destroyed by fire last August. Port commissioners selected BC&J founders Peter Brachvogel and Stella Carosso to design a new waterfront development to welcome visitors to San Juan Island’s Friday Harbor. The Spring Street Landing, which was home to restaurants and other wateroriented businesses, is near the Washington State Ferry terminal and adjoins a passenger ferry terminal serving summer travelers from Bellingham, Port Townsend and Seattle. Working with BC&J Architecture, the Port Commission selected a design that honors the town’s history while providing view corridors and plaza spaces for public enjoyment. “We are pleased to help knit back together the waterfront fabric that is so instrumental to the sense of place of Friday Harbor,” Brachvogel said. BC&J has a history of working with other ports and waterfront communities in Washington. The firm designed the Sunset Magazine Idea Houses in Seabrook, The Roche Harbor Village Master Plan, and the Orcas Village Store on Orcas Island. Since BC&J (www.bcandj.com) was
founded 25 years ago, the firm has specialized in responsible, engaging and sustainable residential and community-based projects that range from single-family homes to neighborhood planning.
New tenant signs lease at nursery site that will become industrial park A commercial wholesaler will soon be selling building materials at the site of the former Clear Creek Nursery. Property owners are redeveloping the nursery site into an “upscale” industrial park. National wholesaler Ferguson Enterprises signed a lease to be the first tenant at the property, according to Ric Bearbower with Clear Creek Property Group LLC. Ferguson will use an existing 8,000-square-foot building for merchandise sales and office space, and store materials in an adjoining 1.5-acre yard. The Kitsap County hearing examiner approved a conditional-use permit for Ferguson last month. Bearbower said the company hopes to open the location this fall. Ferguson maintains more than 1,300 sites across the country. It has outlets in Port Orchard and Poulsbo. Clear Creek Property Group has plans for an additional 50,000 square feet of warehouse space divided among 10 buildings. Bearbower said the group plans to leave as much landscaping intact as possible at the 10-acre property, which sits between Clear Creek Road and Highway 3, north of the Highway 303 interchange. A bankruptcy forced Clear Creek Nursery to leave the property in 2012. The business operated there for 13 years, but the down economy hurt sales to contractors. The nursery owners landed in Poulsbo, where they opened Olmsted’s Nursery.
WSU Extension offers livestock short courses in Bremerton The Washington State University Extension and Department of Animal Sciences are offering daylong courses in sustainable pork and poultry production on July 11. The courses, called Pork 100 and Poultry 100 respectively, will take place at the Kitsap County Fairgrounds and each includes eight
hours of in-depth training. In addition, the WSU Instructors are offering a special, all-day Youth Livestock Quality Assurance course on the same day. This session, focused on young livestock producers and 4-H youth, covers all aspects of livestock production, with an emphasis on meeting Quality Assurance standards. These one-day intensive courses are designed to increase the knowledge and skills of those expanding into livestock production. In addition, they are excellent refreshers for experienced producers looking to increase the sustainability of current operations. Because both Pork 100 and Poultry 100 are focused on a single species, each course helps farmers and ranchers increase their knowledge on the safe production of high quality food animals in an environmentally sound and humane manner. Topics addressed include nutrition, management on pasture, breed selection, genetics/reproduction basics, production and marketing, health, hands-on activities, and more. Instructors include WSU Extension meat and livestock specialists with extensive knowledge in all aspects of livestock production. Additionally, each course will feature a panel of local producers, discussing successful production in Washington state. Course registration includes lunch, all materials, and a flash drive of resources to take home. Registration by July 3 is $65 per person, or $100 per couple. After that, late registration is $75 per person. Register online at livestock100.brownpapertickets.com/ or download the form at ext100.wsu.edu/ kitsap/ and mail in with your check.
Extra $2.2 million will advance road project through industrial park The Port of Bremerton will receive $2.2 million in leftover funds from the 2013 federal funding cycle, and the money will go toward the Cross-SKIA Connector project at the port’s industrial park near the Bremerton National Airport. Puget Sound Regional Council announced June 16 that it’s redistributing about $20 million to shovel-ready projects. The funding was divided proportionally by population among King, Pierce, Snohomish and Kitsap counties, with $1.2 million going to Kitsap for its highest-priority road project. “We came back and said our project is the SKIA project, and it’s not $1.2 million, it’s $2.2 million. That’s the one
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we need and the one that is ready, and they bought it,” said Mary McClure, executive director of Kitsap Regional Coordinating Council, which had the project as its top priority. PSRC bumped up the total pool instead of taking money from the other counties. The first section of the connector road through the South Kitsap Industrial Area (SKIA) was built in 2010, pushing in from Highway 3. The next phase will extend it almost another mile to Old Clifton Road. The connector road will have two 12-foot traffic lanes, a 5-foot bicycle lane, 3-foot gravel shoulders, a separated 5-foot asphalt walking trail and a roundabout at Old Clifton. Most of the road construction will be done in 2015. Ultimately, the 3.5-mile road will wrap around the east side of the airport and intersect with Lake Flora Road, opening up hundreds of acres to industrial development.
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Developer plans waterfront condos and restaurant Bucklin Court project would be next to Silverdale Beach Hotel By Tim Kelly Kitsap Peninsula Business Journal
A luxury condo development with a fine-dining restaurant is in the works on a Silverdale waterfront site between Old Mill Park and the Best Western Plus Silverdale Beach Hotel. Daybreak Development, LLC recently filed plans with Kitsap County for a four-story building with underground parking for condo residents and some commercial tenants. The plan is for eight condos, with most units on the third and fourth floors and some as large as 2,000 square feet, but architect
SEAN PARKER ARCHITECTS
A site plan drawing shows the Bucklin Hill project, a planned fourstory building with condos on the top two floors, a restaurant on the ground level, and other office and commercial space. If approved, it would be built on a 1.3-acre waterfront site by Old Mill Park in Silverdale. Sean Parker said that might be revised to meet the county’s minimum density requirements. “I think we’re actually going to end with more condos, I suspect in the 10 to 13 range,” Park-
er said. “We’ve got the envelope of the building figured out, and we can carve it up different ways.” Parker and architect Charlie Wenzlau, both from Bainbridge Island, are designing the project
Revived plan to build new Fred Meyer moving ahead Larger store will anchor retail development across Highway 16 in Gig Harbor By Tim Kelly KPBJ editor
Plans that first surfaced several years ago to build a new Fred Meyer store in Gig Harbor on the opposite side of Highway 16 from the existing store are moving ahead, and site work could begin later this year. The new store would anchor a planned retail development to be built along the west side of Point Fosdick Drive north of Olympic Drive, and would include land that has
been used by Fife RV at the north end of the property. Fife RV is closing its Gig Harbor dealership and currently advertising a liquidation sale. Besides a 64,000-square-foot Fred Meyer with a gas station — something the existing store does not have — the Olympic Towne Center development will include five other buildings and have total retail space of more than 170,000 square feet. “The overall design is essentially buttoned up,” said Dennis Troy, an associate planner with the city. He added that the applicant, WWR Properties of University Place, is currently going through the SEPA approval process and revising a traffic impact analysis to address issues raised by the state Dept. of Transportation and Pierce County.
on a 1.3-acre site that Daybreak Development purchased last year from the former owner of the Silverdale Beach Hotel. The design has a large breezeway through the building, which would have about 4,000 square feet of space for an upscale restaurant with banquet space for small groups on the ground level and approximately 6,300 square feet of second-floor office space. The total building is just under 32,000 square feet, plus an underground parking garage, Parker said. “One of the cool things about this building, is it’s got these giant outdoor terraces” facing Dyes Inlet, Parker said. “We’re hoping they’ll be primarily used by the restaurant.” Rick Kreuger of Belfair, a principal in Daybreak Development, said once the project is approved and built, he hopes to find a restaurant operator who will lease the space.
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“I think there’s a real need for a nice restaurant in town,” Kreuger said. Access to the condo development, which might have some other retail space, would be from Bucklin Hill Road at the intersection with a traffic light by the Silverdale Plaza on the north side of Bucklin Hill. Once the plans are approved and all permits are obtained, construction could begin next spring, Parker said. No contractor has been selected for the project yet. Harrison Medical Center recently announced plans to build a new hospital on its expanding Silverdale campus, and the growth in the local medical community could help in marketing high-end condos nearby. “It’s not a very big project, and I suspect there are enough folks around to fill it up pretty quickly,” Parker said. “It really is a great spot.”
nect with Olympic Drive. Zoning restrictions limit individual buildings to a maximum of 65,000 square feet at the site, but that’s larger than the existing SEE FRED MEYER | 31
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Freestone housing development restarts at Bremerton-McCormick Woods interface By Chris Henry Kitsap Sun
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existing 47,000-square-foot Fred Meyer. “The Gig Harbor location is primarily a grocery store,” not a typical full-line department store, said Melinda Merrill of Fred Meyer’s public affairs office in Portland. “Most of our stores are 150,000 to 220,000 square feet.” Olympic Towne Center, which is the largest commercial project currently in development in Gig Harbor, also will have a
Anderson Hill Rd.
There’s activity at a large housing development near the Anderson Creek watershed, just inside Bremerton’s southern city limit. Freestone at Bayside, approved for 294 lots on 56 acres, sat fallow through the recession. With the housing market picking up, owner Freestone Communities has started construction on Bayside phase one, with 167 single-family homes. Freestone, one of the largest private homebuilders in Western Washington, plans a total of 275 homes on the site that is east of land the Bremerton uses for its water supply. Bayside’s three- and fourbedroom, two-story homes, on lots ranging from 2,550 to 3,510 square feet, will start in the low $200,000s, according to Eric Engelland of Cobalt Mortgage, Freestone’s “preferred lender.” Prebuilt and partially customized models are available. “They are not entry-level homes, to be sure,” En-
can be situated more gelland said. “They GORST DEVELOPMENTS major housing developments are planned in Gorst. They surclosely together to are what we refer to Two round Bremerton-owned watershed land around Anderson Creek. work around critical as ‘first move up’ and 3 areas. The develop‘second move up.’” ment will have nearFreestone’s projGorst ly 25 acres of open ects in Kitsap Counspace, including bufty include develop16 fers around wetlands ments on Dyes Inlet and two small, nonin Bremerton, Liberty fishbearing streams Bay in Poulsbo and in on the property that North Kitsap. feed Anderson Creek. Another developBayside, 294 City of Plans call for 1.44 ment of 300 singlelots planned Bremerton acres of neighborfamily homes west of on 56 acres watershed hood parks within the city’s land is in the open space. the pipeline. The ownAlthough Bayside er is Northview Ridge is located in BremerProperties LLC of ton, it sits just north Suquamish. The projof The Ridge at Mcect formerly known Cormick Woods, a as Sinclair Ridge, now Northview Ridge development in Port Northview Ridge, origProperties LLC, 300 Orchard. inally was approved homes planed on 125 acres Old Clifton Rd. 500 feet Children who live for 600 homes, but in Bayside will atproperty owners are tend South Kitsap looking to build more schools, and the developer er built, and Bremerton in upscale homes on larger will pay the district $1,017 lots, said Robert O’Neill, a 2006 updated its compreper lot in impact fees. But hensive plan to downgrade member of the LLC. the development will get its In fact, development of zoning of the area formerly water and sewer services the whole area west of Anknown as Northwest Corfrom Bremerton. derson Hill Road is signifporate Campus from “emAdding to the area’s conployment center” to resiicantly scaled back. Plans dential. in the mid-1990s called for Bayside was approved as a 340-acre corporate cama “residential cluster develpus with a focus on technolopment,” meaning homes ogy. The campus was nevSCRIPPS NEWSPAPERS
57,000-square-foot building that will house a family entertainment center with a bowling alley, restaurant and gaming area. Another building reportedly may be a Petco. The property already has a Starbucks, Dairy Queen and Papa Murphy’s Pizza, along with a few other small businesses, at the south end of the site by Olympic Drive. No plans have been publicized for use of the old Fred Meyer store after the new one is built.
Poulsbo raises fees to hire more staff who will review building permits Poulsbo is increasing the cost of building permits and implementing additional fees starting next month, and the city plans to hire a second full-time employee to review permit applications. The city’s planning and building department has been operating with one person to review building permits. Three people in the planning section review landuse permits, such as subdivision, conditional-use and shoreline permits, among others. Barry Berezowsky, city planning director, told the City Council that the building department could not continue to operate with only one inspector and deliver a “reasonable level of service.” The council approved the fee increases, along with the new position. Building permits, which have not increased in the past decade, will go up 2.9 percent each year for the next 10 years. The planning and building department estimated the fee increase for a $500 deck would be about $8. And the increase would average about $660 on a permit for a 2,500-square-foot, single-family house valued at $275,000. For a 10,000-square-foot commercial permit — valued at $1.2 million — the increase would be about $15,200. The fee increases will help pay for an additional fulltime employee to help review permits in the building department. flicted identity, properties to the east of Bayside and The Ridge are in the county. Developers paid $550 per lot to Kitsap County
for traffic mitigation. The county has installed a turn lane in front of the development, with two entries on Anderson Hill Road.
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Kitsap Peninsula Water Trail gets National Parks designation Kitsap Sun
The Kitsap Peninsula Water Trail — a network of 79 locations where paddlers can launch vessels, take breaks or camp — has been designated a national water trail by the National Park Service. Kitsap’s 371-mile route joins 15 other national water trails that range from routes on the Mississippi River to island loops in the Great Lakes. Kitsap’s trail is the only one in Washington and the second on the West Coast. The Kitsap trail is the first routed entirely on saltwater. The designation doesn’t come with federal funding, nor does it put Kitsap’s route under national park authority, but it does boost Kitsap’s profile as a national destination for kayakers, canoers and paddleboarders. Paddleboarder Ezra Pergam isn’t surprised Kitsap earned the designation. “For paddling, we are very fortunate to live in one of the best places in the world. Literally, the world,” said Pergram, a coastal Floridian who now lives in Silverdale.
Next Kitsap Business Forum will focus on tourism The next monthly Kitsap Business Forum on July 8 will feature a panel discussion on “What’s Tourism Got to Do With Me?” The panel will include Jon Rose of Olympic Property Group; Leslie Chamberlain, owner of FoxBridge B&B in Poulsbo; CEO Russell Steele of Port Madison Enterprises, which operates Suquamish Clearwater Casino Resort; and two board members from Visit Kitsap Peninsula — Steven Gear, general manager of The Oxford Suites in Silverdale, and Arne Bakker, gen-
Kingston paddleboarder John Straub said Kitsap is already a destination for land-based trail users, including runners and mountain bikers. “This designation is another big feather in our cap,” he said. “It says ‘hey, look at this area. There’s a whole lot to do here.’” Pergam and Straub were two of the dozens of paddlers drawn to the recent Kitsap Peninsula Water Trail Festival, an annual event on the Silverdale waterfront organized by Olympic Outdoor Center. The June 21 festival just happened to fall two days after the National Park Service notified Kitsap County officials that Kitsap’s trail had gotten the nod. “This is not only a tremendous success for Kitsap, but also for Washington state,” said Patty Graf-Hoke, executive director of Visit Kitsap Peninsula, the tourism bureau that played a key role in developing the trail. “It’s great positioning that sets the stage for us to be a national or international destination. And from Seattle, too, with all the growth there. Kitsap is really becoming an outdoor playground for the region.” eral manager of Kitsap Conference Center in Bremerton. Visit Kitsap Peninsula executive director Patty Graf-Hoke is unable to participate because she is a member of a state task force on outdoor recreation and parks that has a meeting that day in Wenatchee. The Kitsap Business Forum panel will discuss how tourism in Kitsap affects every business and how business operators can better capture this market. The Kitsap Business Forum is held from 7:30-9 a.m. at the Morgan Stanley Smith Barney office in Silverdale at 2011 NW Myhre Place, Ste 301.
MEEGAN M. REID
Stand-up paddleboarders and kayakers paddle by the Silverdale pier while participating in the Kitsap Peninsula Water Trails Festival on June 21. The water trail idea was developed by Graf-Hoke and John Kuntz, founder of Port-Gamble-based Olympic Outdoor Center and a board member of Visit Kitsap Peninsula. But it wasn’t until Kitsap County got behind the effort that local paddlers developed national aspirations. “I never thought we’d have a national trail — ever,” Kuntz said. “I was happy
with just a Kitsap trail.” Kitsap County Special Projects Manager Eric Baker said the county got involved after it became clear that designation would be a “boon to the local tourism economy.” The park service has already added the Kitsap water trail to its website, and park officials say Kitsap will be part of national water trail promotions.
Gig Harbor waterfront group to conduct tourism review
alliance, the Chamber of Commerce, restaurants, hotels, festivals, retailers, cultural and boating resources and others. Devlin will compare the Gig Harbor situation to regional and national trends and present a report of her findings and recommendations. Alliance executive director Mary DesMarais said “visitors are extremely important to the economic health of the downtown waterfront. Surveys of customers show about 27 percent of customers come from areas outside the greater Gig Harbor trade area in the summer compared to just 9 percent in the winter. “These tourism visitors are very important to the economy.”
The Gig Harbor Downtown Waterfront Alliance will conduct a Tourism Assessment Study in June and July. Nan Devlin of Avid Traveler Consultants in Seattle will be completing the review. She is working with the alliance and Karen Scott of the City Marketing Department to gather information about existing promotions, hotel and venue capacity, community events, and home locations of visitors. She will conduct telephone and in-person interviews with representatives of the
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CAR REVIEW | 2015 VOLKSWAGEN GOLF
Ready. Set. Golf. By Lary Coppola For KPBJ
Volkswagen’s new advertising slogan debuted at the 2014 World Cup competition, promoting what VW marketeers say is the most important car in its lineup — the 2015 Volkswagen Golf. This is the seventh generation of the most successful European car of all time — the car that replaced the legendary Beetle. Fast forward 40 years, and 30 million cars worldwide later — including 12 years being known as the Rabbit — and it appears the German automaker has hit the bull’s-eye again with the new Golf. We had the opportunity to put the 2015 Golf and its GTI version through their paces at a media event in San Francisco. VW views the Ford Focus, Mazda3 and Subaru
Impreza as its main competitors in what’s known as the “Hot Hatch” market segment. It competes well — as we found out by driving those vehicles, as well as previous versions of the Golf — in head-to-head comparisons. The Golf comes in two- and four- door models, and can be equipped with either a turbocharged gas engine or turbocharged diesel, either of which can be mated to a six-speed manual or six-speed automatic transmission. Walkaround: The first use of VW’s versatile MQB platform in the U.S., the evolutionary styling leaves it easily identifiable as a Golf, in spite of being longer, wider and lower than the previous model. The Golf’s familiar shape is crisper yet more rounded, and contemporary looking.
CAR REVIEW | 2014 BUICK REGAL
Refreshed Regal still impressive By Lary Coppola For KPBJ
In China, owning a Buick is a status symbol akin to owning a Mercedes, BMW, Infiniti, Audi, etc., in the U.S. I’ve actually never quite understood why. However, driving the 2014 Buick Regal reconfirmed
what I already knew after driving the entire Buick lineup more than once over the past couple of years — they’re much better cars now, than at any other time in my life. With Buick’s product renaissance, unless you’re a baby boomer, it’s hard to remember how bad they once were. Choosing a 1973, boat tail back Riviera as a reward to myself for achieving a major milestone in my young life to be my first brand new car, I still vividly remember the grinder marks that were painted over at the factory, and having to actually threaten the factory rep with bodily harm to get them fixed. And who can forget the parts bin Buicks of the 1980s, which were difficult to tell from Oldsmobiles and Chevys, except for the trishield badging and signature faux exhaust ports on the sides? Yes, Buick has come a long way, and the 2014 Regal is a measurement of just how far. Walkaround: While we were impressed with the Regal when it originally debuted in 2010, Buick has significantly refreshed
the car for 2014. While Buick’s trademark waterfall grille remains basically unchanged although slightly stylized, the exterior styling has evolved, with a lower, wider appearance that conveys a more aggressive, upscale and contemporary look. New wing-like headlamps are available in two versions — halogen projector beams and xenon high-intensity discharge (HID), with available LED daytime running lamps. The Enclave-inspired LED wing-shape taillights showcase a chrome strip running nearly the width of the car, sliding right into the lightly smoked glass. Those lights themselves are wider than on the previous version, with an element integrated into the trunk lid. Interior: The Regal’s cabin is as plush and functional as anything in its class. Material quality on the dash is soft plastics on the upper dash, trimmed in what appears to be stitched leather to match the seats. The lower dash and trim around the center stack is harder plastic that blends in nicely. The leather on the seats is soft and smooth, although the hides used for the steering wheel don’t seem to be quite as soft. The big news is that the cabin has been redesigned and reorganized. Gone is the previous mass of buttons on the center stack. It’s been replaced with a much cleaner, more attractive design centered around an 8-inch touchscreen housing Buick’s next generation IntelliLink system with a few redundant buttons positioned below. Below that is a clean, logical set of controls for the dual-zone climate system and the heated seats. Instrumentation includes a 4.2-inch display that shows everything from trip, navigation and audio information to per-
The most notable change is the front fascia, which features angular new headlights and a slimmer grille. It’s also shed 51 pounds, which translates into improved fuel efficiency — particularly laudable since the Golf is now larger in nearly every dimension — including bold new 18-inch wheels.
Interior: Fit and finish, coupled with traditional German sparseness of design, plays well in the new Golf. Interior space had been increased — as witnessed by more than ample room for two good-sized guys during our test drive. The interior trim features soft-
formance settings data — all controlled via steering-wheel-mounted buttons. The 96.8 cubic feet of cabin space, and the 14.2 cubic feet of trunk space remain unchanged. However, the rear seat also remains somewhat cramped when it comes to headroom. Our test vehicle was pretty much top-ofthe-line, with the two premium trim packages that featured leather seats and included power everything — windows, seats, door locks, mirrors, etc. — as well as sun-
roof, HD satellite radio, Bose 9-speaker premium sound, Bluetooth and more. It also featured a rear-view camera, GM’s Adaptive Cruise Control, blind side and lane change alert, and automatic collision preparation. Under The Hood: Our test vehicle was equipped with Buick’s turbocharged, direct-injection, dual-overhead cam, 2.0-liter 4-cylinder, with continuous variable valve timing, married to a 6-speed automat-
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BUSINESS COMMENTARY | DON BRUNELL
Trucks, trains, ships and pipelines All too often our network of highways, pipelines, railroads, barges, ship terminals and airports goes unnoticed unless there is an accident. For example, we don’t notice the trains delivering the chlorine that purifies our drinking water. We pay little attention to the trucks transporting gasoline for our cars and propane tanks for backyard barbecues. The fact is without trucks, trains, pipelines, barges, ships and airplanes, we couldn’t survive. They transport everything we use every day and some products are potentially dangerous. Thankfully, shippers must abide by hundreds of federal, state and local safety regulations. EnforceR EGA L | F ROM 3 6
puts 259 horses to the highway with 295 pound-feet of torque, which is spread from 2,500 to 4,000 rpm. Fuel economy is pegged at an EPA rated 21/city, 30/ highway for a combined rating of 24 — which is pretty much what we experienced. Behind The Wheel: The V W GOL F | F ROM 3 6
touch plastic, along with chrome, aluminum and piano-black finishes. While it was plastic, none of it looked or felt cheap, as plastic sometimes does. The controls have been rearranged to improve ergonomics and make the cabin more driver-centric. The center stack is tilted toward the driver, and the GTI includes a 5.8-inch touchscreen to manage the new infotainment system. Employing no-nonsense graphics on a black background, and not as visually clever as some others, it does what you ask with minimal lag and frustration. Considering the over-engineered systems offered today (Can you say BMW?), the technochallenged will welcome its functional simplicity. The GTI’s sporty interior boasts red ambient lighting, illuminated doorsills,
ment of those rules helps protect us and well-trained first responders save us. Each year the U.S. Dept. of Transportation publishes information on shipments across America. In 2012 that network moved about 54 million tons of freight each day, worth nearly $48 billion. Half of these goods are moved close to home, transported less than 100 miles. Trucks are the workhorses in our system. Short-haul truckers move 84 percent of goods transported less than 100 miles and long-haul truckers carry 34 percent of freight transported more than 2,000 miles. Railroads dominate mid-range shipments, from 750 to 2,000 miles. For Washington, a viable transportation network is crucial because our economy depends on international trade. In fact, our state
has the highest per capita traderelated income of all 50 states. So what’s the problem? We need to upgrade our state’s highways and roads. We have traditionally relied on the gas tax to fund this work, but as cars become more fuel-efficient and electric cars become more popular, drivers are buying less gasoline. As a consequence, the gas tax is no longer producing enough revenue to fund the highway system. Building and maintaining highways, bridges and transit systems is extremely expensive. Lawmakers are wrestling with a variety of funding options, including tolls, taxes, fees and regulatory reforms. Unfortunately, it does not appear Congress or our state legislature will pass a transportation funding package this year, or even next. Contrast that uncertainty to
the Burlington-Northern Santa Fe Railroad, which has invested $42 billion since 2000 to improve infrastructure, equipment, technology and emergency response training, including a record $4 billion last year. BNSF plans to invest a record $5 billion in 2014. BNSF understands that its future depends on upgrading its transportation network and operations. The same is true for our state and our roads. Unfortunately, waning revenues and legislative wrangling aren’t the only problems affecting our transportation network. Some fossil fuel opponents are attacking anything and everything related to the production and delivery of fossil fuel. As part of that agenda, they want to stop rail shipments of oil and coal, block construction of export terminals and stop expansion of the Keystone Pipeline. The activists’ most recent target in Washington is the trains that would carry low-sulfur coal from Wyoming to proposed export terminals on the Washington coast.
They claim that rail traffic is unsafe. Not true! The truth is that rail transportation is the safest, most cost-efficient and environmentally sound way — by far — to move freight. It is approximately four times more fuel-efficient to move freight by rail than by truck, and moving hazardous material by rail is 16 times safer than moving it on the roads. Ironically, if the activists get their way, they will be pushing tons of hazardous freight onto our overcrowded highways. How will that make us safer? While we need to ensure that goods are moved safely, the point is that everything we eat, wear and use must move from where it’s produced to where it’s sold. That is just a fact of life. • Don Brunell is a business analyst, writer and columnist. He recently retired as president of the Association of Washington Business, and now lives in Vancouver. He can be contacted at theBrunells@msn.com.
2014 Regal is comfortable to drive, and I had the opportunity to put some miles on it on a variety of terrains and circumstances. The Buick’s overall sense of agility felt good, despite its nearly 4,000-pound curb weight. There’s not a lot of unexpected motion in the suspension, with a mildly firm, but compliant ride,
that’s relatively quiet and comfortable. The Regal, like most cars today, uses an electric, variable-assist power steering system. I was pleasantly surprised by the feedback it gave, as some of these are way too soft for my particular driving style. Acceleration is linear and predictable due to the
horsepower and amount of easily accessible torque, while braking is strong and surefooted. Whines: For some reason, Buick elected not to offer paddle shifters on either the Regal or the sportier Regal GS models. Not offering them as standard equipment is almost indefensible — especially when
they cost so little to add. Bottom Line: The 2014 Buick Regal is a pretty good value — stickering at $38,270 as tested. Obviously, it doesn’t have anywhere near the level of brand cachet as competing European sedans, but forgetting badge snobbery, the Regal holds its own — especially considering that it doesn’t
run up the price with confusing, multiple add-on option packages like the Japanese and Germans, particularly BMW and Nissan. The Regal is a capable performer that offers looks, comfort and reasonable performance at a price point that won’t break the bank.
sporty aluminum pedals, a variation on the GTI’s fabled dimpled golf-ball shift knob, and a GTI-specific instrument cluster. The driver’s seat is positioned rearward to create more legroom. The front seats are comfortable and bolstered well, as our test drive through the narrow, twisting two-lane blacktop of East Bay Hills, Berkley, and other environs above Oakland proved. Legroom in the back isn’t that great — especially with the front seats slid rearward, so seating five adults is pushing it, but not entirely out of the question, — especially in the five-door. There’s ample cargo space — up to 52 cu. ft. with the back seats folded down. Under The Hood: The MQB platform is designed for longer wheelbases and multiple powertrains, and we got to preview some of the ones offered.
The GTI comes with a 2.0-liter, four-cylinder turbocharged powerplant that delivers 210 horses and 258 pound-feet of torque at only 1500 rpm. The optional performance version adds another 10 horses. The regular Golf is powered by VW’s workhorse 1.8-liter, four-cylinder turbocharged engine that puts 170 ponies on the pavement with 200 pound-feet of torque. Scheduled to hit showrooms in Q1 of 2015 are an all-wheel drive R version of the Golf, which will extract an estimated 290 horses out of the 2.0-liter powerplant, and a Golf Sportwagen — which will be a bigger, more spacious replacement for the popular Jetta Sportwagen — and will be powered by VW’s 1.8-liter turbocharged clean diesel. An e-Golf is showing up at dealers now. It offers a 24.2 kWh lithium-ion bat-
tery and an electric motor with 199 pound-feet of torque. The standard 7.2 kW onboard charger allows an 80 percent charge in as little as 30 minutes. Behind The Wheel: Naturally, there are differences in the handling and performance of the standard Golf and the GTI — which has more horses and a stiffer suspension — which is evident when hitting a bump. The Golf didn’t feel as tight as the GTI on sharp curves, cornering with noticeably more body roll. However, the standard Golf still held its own. This is a compact car meant to be a daily driver — not a sport coupe like the GTI. We also took the e-Golf on a short spin. Like most electric cars, the impact of 199 pound-feet of torque is immediate. The e-Golf has all the driving characteristics of the gas-powered Golf, with a range of 70
to 90 miles per charge. To lessen range anxiety, the e-Golf also comes with a roadside assistance plan. Even with the air conditioning going full blast in the record 96-degree heat, both versions performed consistently well, with responsive steering, solid braking and a relatively quiet ride thanks to increased sound dampening. Whines: For some reason, Volkswagen has declined to put a USB port
in the Golf, but the iPhone connection does fit the latest version. Bottom Line: The new 2015 Volkswagen Golf and GTI are truly better than ever. With even more options than before, the GTI remains a truly affordable performance value. The fact that this car is so much fun to drive — and yet still affordable — is perhaps its best quality of all.
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REGIONAL ECONOMY | JOHN POWERS
Return engagement … persistence pays off Three years ago the Kitsap Aerospace & Defense Alliance (KADA) was formed to better position Kitsap to participate in the rapid expansion of the region’s aerospace sector. In 2011 there were few Kitsapbased aerospace businesses; today several local businesses are engaged in designing and manufacturing products for the aerospace industry, both defense and commercial aircraft. Our largest exclusive aerospace manufacturer, Omohundro Co., opened its doors in Port Orchard in the third quarter of last year. Today, it employs dozens of skilled workers building sophisticated composite structures for a variety of aircraft for many of the leading OEMs in the industry. In addition, several other local incumbent manufacturers have diversified their product offerings and are now growing their businesses as multi-tier aerospace parts suppliers. These companies include TMF Machining and Trulife located in the Poulsbo area. Trulife is a long-standing medical device company that today, in partnership with a recently acquired sister
company from Bellingham (Pro-CNC), is manufacturing precision parts for the aerospace industry under a new venture – Sequoia. Sequoia is one of a dozen Washington state aerospace manufacturers from our region that will be participating in this year’s Farnborough International Airshow. And, for the second year in a row, our Kitsap Aerospace & Defense Alliance will also be part of the 50-member Washington State Department of Commerce’s delegation to the largest aerospace and defense trade show in the world. Last year France, this year England, next year back to France; and, with each succeeding year, more and more aerospace activity in Kitsap will occur. Over the past three years our alliance has promoted Kitsap aerospace and defense opportunities at a dozen significant trade shows. As a result, Kitsap is steadily becoming known as an emerging aerospace community – so recognized by the U.S. Commerce Department just last month with its designation of the Washington State Aerospace Manufacturing Community (consisting of six counties in the state), one of only 12 designated communities in the country.
Minimum wage issue goes to Supreme Court By Donna Gordon Blankinship Associated Press
SEATTLE — State, federal and local law may all play a role in the Washington Supreme Court’s decision on whether a new $15 minimum wage law in SeaTac applies to airport workers, if the questions asked by justices during oral arguments Jue 26 are any indication. They asked such a broad variety of questions that lawyers barely had time to push the court in one direction or another during the hourlong hearing. The lawyers already had flooded the court’s in-box with briefs, so the justices had a good idea of how the attorneys wanted them to rule. The justices seemed interested in the jurisdictional debate the lawyers presented. But they also wanted to talk about conflicts within the new SeaTac law, modern interpretations of
old language in state statutes, and whether state rules would allow the airport to set its own minimum wage. The Supreme Court hearing is the latest development in the debate over the minimum wage in Washington, which already has the nation’s highest minimum wage at $9.32 an hour. The Seattle City Council voted early this month to gradually raise the minimum wage in Washington’s largest city to $15 an hour. That case is also being fought in the courts. Questions asked during the Supreme Court hearing included: — Does the Port of Seattle, which runs Seattle-Tacoma International Airport, have exclusive jurisdiction over the airport and what does exclusive jurisdiction mean? — Who can set minimum wages under the state’s minimum wage law? Does the Port of Seattle have any
authority under that statute? — Would the new SeaTac law, which goes well beyond setting a minimum wage, potentially interfere with the port’s management of the airport? How could this interference be measured?
This designation provides Kitsap with a unique competitive advantage when pursuing workforce grants and other resources to support our manufacturing companies. It was, in large measure, because of the excellent Air Washington workforce programs at Olympic College (including an outstanding composites curriculum) that Omohundro chose to relocate to Kitsap a year ago. This year’s KADA delegation to Farnborough includes Kitsap County Commissioner Charlotte Garrido (a member of KADA’s steering committee), as well as KADA cochairs Tim Thomson, the former Port of Bremerton CEO, and myself, executive director of the Kitsap Economic Development Alliance. While in Farnborough, we will meet with aerospace and defense firms from around the globe, and many large international defense firms that already operate in our region. Our aim is to explore new and additional opportunities for these companies in Kitsap. Commissioner Garrido, a champion of workforce development, will also participate in a select group of economic development and industry leaders that will tour the world’s leading center of excellence in composites in Bristol, England. No doubt this will spark new ideas for our local composite programs. I look forward to this valuable opportunity to tell and sell the Kitsap story in concert with my colleagues. And, I look forward to briefing the Kitsap community on progress made in Farnborough in my next column. — Does the SeaTac law do too much and, if so, what parts of the law should be allowed and what parts should be stopped by the court? Can the court pick and choose which elements of the law to keep? — Do any other state or
Finally, I want to thank all the many community leaders who stepped up to form and support the Kitsap Aerospace & Defense Alliance just a few short years ago: Port of Bremerton Commissioner Lary Stokes; Bremerton Mayor Patty Lent; former Kitsap County Commissioner Josh Brown and Commissioner Charlotte Garrido; Port Orchard Mayor Tim Matthes; Poulsbo Mayor Becky Erickson; Bainbridge City Council member Steve Bonkowski; Harrison Medical Center CEO Scott Bosch; Jim Carmichael, former CEO of Kitsap Bank, and Steve Politakis, Kitsap Bank CEO and KEDA board chair; Julie Tappero, president of West Sound Workforce; Steve Rice, principal of Rice Fergus Miller; Russell Steele, CEO of Port Madison Enterprises; Elliot Greg, CEO of Kitsap Credit Union; Larry Coppola, former publisher of the Kitsap Peninsula Business Journal; and, Cary Bozeman, former mayor of Bremerton and former CEO of the Port of Bremerton. It was Cary who first spotted the aerospace opportunity, and asked the question that we strive to answer for the aerospace market each and every opportunity we can orchestrate ... “Why Not Kitsap?” But for the vision and drive of these outstanding community leaders we would not be in a position to provide a compelling affirmative answer ... Kitsap for aerospace ... let me count the ways. On Kitsap! • John Powers is executive director of the Kitsap Economic Development Alliance.
federal laws conflict with the SeaTac ordinance? Attorney Harry Korrell, representing the group of companies that sued to stop the minimum wage ordinance from going into effect, spent a large part of his presentation talk-
ing about how broad the SeaTac law is. He said the court should strike down the law, in contrast to a lower-court ruling that the law applied to workers in the city of SeaTac, but not at the airport.
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