May 2014 Vol. 27 No. 5
Est. 1988
An edition of the Kitsap Sun
Creative cash flow
Innovative financing boosts small businesses page 4
Inside Banking & Finance | 4-10 Kitsap Conference Center expansion | 17 New business roundup | 26-27
The Kitsap Peninsula Business Journal Post Office Box 259 Bremerton, WA 98337
Presorted Standard U.S. POSTAGE PAID PERMIT NO. 76 Bremerton, WA 98337 CAR-RT Presort
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Business Calendar Do you have an announcement about a business event? Please email it at least two weeks in advance to editor@ kpbj.com. Include a brief description, date, time, location, and phone number and/ or email contact for information.
Tuesday, May 6 Key Life Decisions: Are You Prepared? A four-part seminar helping people reach financial goals, but more importantly prepare for the future. Presented by Edward Jones; please register. Where: Olympic College, HHS Building 129, Bremerton When: 5:30 p.m. Info: 360-373-1263
Wednesday, May 7 Olympic College Job Fair Free and open to the public. Where: Bremerton campus student center When: Noon to 3 p.m. Info: 360-475-7480, careercenter@olympic.edu Silverdale Greendrinks This month’s proceeds benefit March of Dimes; appetizers and drinks. Where: Silverdale Beach Hotel, NW Bucklin Hill Road, Silverdale When: 5:24 to 8:03 p.m. Cost: $10 Info: rsvp@silverdalegreen drinks.com
Thursday, May 8 Regional Strategies: Shaping Kingston’s Future Economic development experts will discuss concepts and provide insights into an unincorporated community like Kingston. Where: Kingston Cove Yacht Club, 25878 Washington Blvd. NE When: 11:30 a.m. to 1 p.m. Cost: $17 Info: kitsapeda.org/events Defending Your Voice: Teaching Soldiers to Tell Their Stories. Discussion on helping veterans cope with trauma through writing and storytelling. Shawn Wong, author and University of Washington professor, speaks of his work with soldiers at JBLM and will talk about how our community can help soldiers tell their stories. Where: Downtown Bremerton Kitsap Regional Library, 612 Fifth St. When: 6:30 to 8 p.m. Info: krl.org
Tuesday, May 13 and Tuesday, May 27
Info: kitsapeda.org/events
Good Morning, Kitsap County Come out and join the Silverdale Chamber for coffee at Hop Jack’s. They will have a different business professional each week for a Q&A session. Where: Hop Jack’s, 3171 Bucklin Hill Road When: 7:30 to 9 a.m. Info: silverdalechamber.com
State M/WBE Certification Workshop (Women & Minority Owned Businesses) Topics include: review certification, talk about benefits, review eligibility, walk through application and
Tuesday, May 13 Labor and Industries Workshop for Construction Employers on Fall Protection Covers new and updated requirements, definitions and protection and more. Registration required. Where: Labor & Industries Department, 500 Pacific Ave., Bremerton When: 9 a.m. to 1 p.m. Info: 1-800-574-2829
Wednesday, May 14 Poulsbo Greendrinks Where: TBA When: 5:30 p.m. Info: poulsbogreendrinks@ gmail.com
Tuesday, May 20 Silverdale Chamber Breakfast Breakout Silverdale Chamber members are invited to meet for breakfast and networking, and learn more about chamber and membership benefits. Where: TBA When: 7:30 to 8:30 a.m. Info: silverdalechamber.com Life Care Planning Seminar Richard Tizzano presents a Life Care Planning Seminar covering health care (Medicare, Medicaid and long-term care insurance), housing, financial and legal (estate planning). The focus is to find solutions to a secure and successful retirement. Where: Fairfield Inn and Suites, 239 Fourth St., Bremerton When: 10 a.m. Info: legalpeaceofmind.com or 360-779-5551 Leveraging Regional Resources & Relationships Economic development experts discuss concepts and provide insights into an unincorporated community like Kingston. Where: Kingston Cove Yacht Club, 25878 Washington Blvd. NE When: 11:30 to 1 p.m. Cost: $17
receive one-on-one assistance. Registration required. Where: Kitsap Economic Development Alliance, 4312 Kitsap Way #103, Bremerton When: 3 to 5 p.m. Cost: washingtonptac.org/ events-workshops
Wednesday, May 21 Government Contracting 101 A general overview of how federal, state and local government agencies buy
goods and services. Additional topics include governmental registrations, market research on what the government buys, marketing and selling your products and services, how government agencies advertise their procurements, how to locate subcontracting opportunities with government prime contractors and much more. Where: Kitsap Economic Development Alliance, 4312 Kitsap Way #103, Bremerton
When: Noon Info: 360-377-9499
Wednesday, May 28 Accounting for Subcontractors Part 1 of 3. Learn about accounting methods that need to be in place and executed to insure timely payments and compliance. Where: Kitsap Economic Development Alliance, 4312 Kitsap Way #103, Bremerton When: 9 to 11 a.m.
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INTRODUCTION | DAVID NELSON
Giving a listen to get started In the weeks since the Kitsap Sun acquired the Kitsap Peninsula Business Journal, I’ve been especially focused on listening. I’ve listened after asking a number of people with different perspectives on our economy about what they need to know to be successful. What’s vital to understanding the market? What statistics help them make decisions? Who do they want to know more about? What’s missing when leaders, business owners, boosters and representatives communicate, whether between one another or with the region? Those are questions already posed and pondered by groups like the Kitsap Economic Development Alliance, Visit Kitsap Peninsula or local Chambers of Commerce. It’s nothing new for them to discuss, but it was educational for me. This business journal, in its first edition
as a publication of the Kitsap Sun, is hopefully a step in continuing the newspaper’s tradition of serving that community — which of course serves the peninsula and region as we grow and sustain our economy. At least one thing remains the same as the Business Journal settles into its new home: Managing Editor Tim Kelly is still here, bringing his existing knowledge and experience with the monthly newspaper. You may hear from him on these pages, and he’s available to connect story ideas or trends reported for the Kitsap Sun’s audience to the business community who benefit from the Business Journal. Contact Tim at editor@kpbj.com.
Other things are new, including four pages through this edition you’ll see noted as “Chamber Partners.” Each of the eight Chambers of Commerce in our distribution area have been invited to partner with us, and they are being provided one page in each issue to share updates on their respective organizations. Only four are in this edition due to a tight timeframe; we expect more in June. Our idea behind the partnership is twofold. First, it allows the Chambers an additional communication tool between one another. If you’re in Gig Harbor, you have a chance to share ideas to a membership on Bainbridge Island, and so forth around the peninsula. The second part is having a central location to find information about each agency. If you run a business in Silverdale with countywide reach, the Business Journal can be a place once a month where you’ll find a glance at economic development ideas from Port Orchard, Bremerton and Poulsbo. John Powers, executive director of the
BUSINESS STRATEGY | DAN WEEDIN
Being Johnny Cash 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
Michael 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 editor@kpbj.com or tim.kelly@kitsapsun.com 360.377-3711, ext. 5359 Find us on Facebook: www.facebook.com/kitsap peninsulabusinessjournal
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. 5
Last month, I was in Bogotá, Colombia, to speak at a conference. I stayed an extra week to visit with family, as I am half-Colombian on my mother’s side. I have five aunts still living and scads of cousins. It’s always a joy to mix business with pleasure, especially in such a cool city as Bogotá. I was sitting with my aunt and two cousins on a gorgeous Saturday afternoon in her living room that overlooked the mountains in the distance. The view was spectacular and I had that feeling of being a continent away from my normal world. That changed suddenly when the radio station we were listening to made a switch in programming from its Latin music to one I was very familiar with. As I was absorbing the ambience of the classic South American city, I recognized the unmistakable dulcet tones of … Johnny Cash. I literally did a double take. Here I was in Bogotá and the voice coming from the radio was a legendary American country artist. I might as well have been perched in Nashville. It doesn’t matter your age, the area you live in, or your taste in music. If you’re an American over about 20 years old, you know the name and the sound of Johnny Cash. Although he passed over a decade ago, Johnny Cash developed a symbol so powerful, that millions of Americans can picture him in their mind by just listening to his music. Now that’s brand. When I say Johnny Cash, you probably picture the ruggedly handsome man in black, with wavy jet-black hair and a guitar slung over his shoulder. You hear the deep, rich, baritone voice with a slight twang that drips with heart and soul. How badly would you like to create a brand like that for your business? If you’re smart, then pretty badly! We all want to be “top of mind” when it comes to our profession, whether we offer a product
or service. The question becomes, how can we become like Johnny Cash? Without belting out a rendition of “A Boy Named Sue,” I’ll share with you my five strategies and tactics to Being Johnny Cash … 1. Create a Look. Johnny Cash was “the man in black.” Heck, he had a song by the same title. He became synonymous with the bad boy image of his time by always being dressed head to toe in black. What “look” can you create through consistency? Consistency in marketing is critical. It includes your logo, your signage, your documents, your letterhead, and your social media presence. When people see your work, they should immediately be able to identify you. 2. Create a Sound. Johnny Cash’s voice is so unique, once you’ve heard it, you will always recognize it. How are your products or services unique? What separates you from your competition? If you aren’t unique and an object of interest, why would anyone do business with you over someone else? Cash’s voice drew people in. How does your exclusivity and image of difference do the same? 3. Create a Following. Johnny Cash certainly wasn’t the only country-western singer of his time, yet he created an immense following of loyal fans. Do you have that? What kind of a business community are you building? What value are you providing so that people will follow your writings; listen to your speeches; buy your products at any cost; or seek you out because of the experience of others? Entertainers are skilled at creating “groupies.” Maybe you need some, too. 4. Create a swagger. JC was one of the original entertainers with “swag.” The term
Kitsap Economic Deveopment Alliance and guest columnist in KPBJ, used the phrase “unity but not uniformity” when I listened to his perspective on business communication. His point, as I heard it, was that there are common strengths and goals in Kitsap’s economy that everyone must be aware of — but the telling of those stories is not a cookie-cutter process. Using some of KPBJ’s established tools — we’ve retained the stable of columnists — along with some new ideas and resources — like Kitsap Sun business coverage or regular sharing from each of our diverse Chambers — we’ll build on a brand that contributes to the business community being better informed. That’s the mission for a new venture with an established publication, and we’ll keep listening as we move ahead. • David Nelson is the editor of the Kitsap Sun, and editorial director of the Kitsap Peninsula Business Journal. Contact him at david.nelson@kitsapsun.com.
swag comes from the hip hop music industry and means superlative style. JC had superlative style based on the machismo that he exuded. Do you have swag in your persona? Now, I’m not talking arrogance; rather a powerful self-confidence. If you don’t have supreme confidence in your ability to help others with your products and services, then why should they? The first sale is to yourself, and you need to buy in big-time. 5. The Music. Johnny Cash reached into people’s souls with his music. It was often describing pain, sorrow and loss that his audience could identify with. He also sang with humor to lift spirits. What’s your message? Don’t have one? You’d better get one then, and a good one. Your message is about how you improve the conditions and lives of others, and you’d better “sing” it in a way that causes an emotional response. Logic makes people think; emotion makes them act. Too often, business people like to express themselves logically, and lose the attention of their audience because they couldn’t uncover the emotion. Bottom line — People of all types are hugely successful in this world when they have a consistent message that engages the masses and do it in a confident manner that touches people’s emotions. Johnny Cash did that. So did Steve Jobs, Walt Disney and Mark Zuckerberg. If you’re not doing it, you must start. Take a look at my list and start moving boldly forward. If you are doing it then keep learning, growing, and developing your brand so one day, you will be as legendary in your world as Johnny Cash is in his. • 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 website at www.DanWeedin.com.
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Entrepreneurs utilize alternative financing to get started, expand By RODIKA TOLLEFSON KPBJ contributor
When Igvar “Iggy” Daga and Sean Matteson needed money last fall to grow their business, Iggy’s Foods, they knew a bank couldn’t help them. As word of mouth about Iggy’s fermented foods made the products more popular, the Bainbridge Island startup had been growing — but not enough to become bankable. To finance a much-needed walk-in freezer and miscellaneous equipment, the two business partners brainstormed options for weeks. They decided their best option was online crowdfunding, but not through donations. Instead, the two got connected with Community Sourced Capital, a Seattle-based, online loan platform that was started by two Bainbridge Graduate Institute alums. “We were attracted to Community Sourced Capital because they offer a model that has reciprocity between the business and the people giving the money,” Matteson said. The idea proved successful — the business raised a little over the $11,000 goal. The interest-free loan will be repaid over time based on a percentage of revenues, and in the meantime Iggy’s can increase production and expand. Iggy’s Foods is among a growing number of businesses that have been looking outside of the traditional banking system to finance growth. With bank lending especially tight during the economic downturn and new requirements making it tougher even for established businesses to borrow, crowdfunding, microloans and other avenues — including business co-ops and nonprofit community-development organizations — are proving to be effective alternatives.
Co-ops REI is probably the better-known business that uses a cooperative model. Co-ops are more typical to grocery stores — like the nascent Kitsap Food Co-Op that’s planning to open a store. But it’s also been popular with art galleries, which take advantage of the idea of pooling a group of artists’ time and resources to run the business. “It’s a way for artists to get their work out there and not break the bank,” said Kathy Thurston, assistant manager at Ebb Tide Gallery in Gig Harbor. Ebb Tide, which is about 30 years old, is one of several art gallery co-ops on the Kitsap Peninsula. It has 15 full- and part-time members who take turns running the gallery and pay dues to cover all the costs. The monthly rental fee of $100 ($60 for part-timers) goes toward lease, utilities, supplies and advertisement. In addition, the artists pay a 10 percent commission on sold art and cover credit card fees for their sold items. “The advantage is that we have our expenses divided among members,” said Thurston, a co-op member at Ebb Tide since 2009.
PHOTOS BY LARRY STEAGALL | KITSAP SUN
Lishu Rodriguez stands outside the home studio in Poulsbo where she and her husband, Leo, run El Dot Designs. The couple, who design furniture made locally and overseas, became eligible for a CA$H business builder loan after successfully repaying through the peer-lending program. They then refinanced an existing crowdfunded loan and cut the interest in half. • On the cover: Rodriguez in her workshop
^ El Dot Designs will have a popup gallery show May 2-31 at the Charrette, located at 130 Winslow Way on Bainbridge Island. An opening reception with music and food will be hosted from 6 to 9 p.m. on Friday, May 2.
Thurston has been part of several gallerpercentage of revenues, repayment time ies, including one in Pioneer Square in Sevaries and the longer it takes to pay everyattle that closed because the owner could thing back, the more it costs the business no longer afford the overhead. in administrative fees. Matteson said that “For us, it works betmonthly fees do add ter to look ahead and “For certain types of up over the months, plan as a group,” she but the advantage of said. “Because we do a businesses in certain using CSC was the lot of planning, we are personal help they’ve stages of growth, more successful.” received, including templates for every community funding is part of the fundraisCrowdfunding ing process and pergreat. Small businesses sonal assistance along Although in many the way. For businesscases it’s more ex- need support from their es looking for financpensive to borrow ing, he feels this is a through other means communities to survive, viable alternative. —many special mi- now more than ever.” Matt Albee, owner croloan programs with his wife of Elevcharge interest above — Matt Albee, Eleven Winery en winery on Bainthe prime rate, for exbridge, agrees. ample — the added “For certain types of businesses in cerbenefits from many of those programs intain stages of growth, community fundclude technical support. ing is great. Small businesses need supThat was the case with Iggy’s Foods as port from their communities to survive, well. The Community Sourced Capital now more than ever — when you have big loans are funded by “squareholders”— inbox retailers within a few minutes of anyvestors who buy “squares” at $50 each, up where and you can get home deliveries in to five squares per person. Unlike other two days,” he said. “This is a great way for crowdfunding platforms such as kickstartthe community to provide that support.” er.com or indiegogo.com that are based on Albee’s business turns 11 this year and donations, with the business receiving a although he could get a bank loan, he chose percentage of the funded amount, Comto use CSC a year ago for a $20,000 crowdmunity Sourced Capital is paid a flat fee funding campaign to consolidate the winupfront (currently $250) and then $100 a ery’s year-round bottling operations into month for as long as the loan remains open. one weekend. The loan itself is interest-free. “We could go to a bank and get money but Because the loan is repaid based on a
I liked the idea that instead of the money going to banks, we borrowed from supporters directly,” he said. Eleven repaid the loan in five months. “The hardest part was sending the emails asking for money,” Albee said. “A bank loan is relatively impersonal. It’s a bit of a risk to ask the people you have a connection with to contribute to the campaign, but there’s also great reward.” Elaine Jones, an adviser with the Small Business Development Center in Port Townsend who previously had an office at WSU Extension in Bremerton, says she’s seen mixed results with crowdfunding because it takes a lot of effort. “But it’s worth trying,” she said. “You are going to people who are interested in what you’re doing — and you’ve got to get them excited,” said Jones, whose office still serves businesses from North Kitsap. In Washington state, crowdfunding for businesses may be even more accessible soon due to a new bill approved by the state Legislature this year. The new law creates an exemption from securities registration for securities sales and offers of up to $1 million in a 12-month period. The Department of Financial Institutions is currently accepting comments on rules for the crowdfunding bill, which will be in effect in April 2015. Then, there’s what Stuart Walton calls oldfashioned crowdfunding: getting a group of people to your home and pitching them your idea over wine and hors d’oeuvres. Walton is program manager for BE$T (Business Education Support Training) at Kitsap Community Resources. He was previously the Kitsap manager for Washington CA$H (Community Alliance for Self-Help.) “Old-style crowdfunding is still effective. Get a group of people in the room and tell them about your dream. You can get a few hundred dollars and lock in some customers,” said Walton, who used this method himself to finance a small startup in the 1980s.
BE$T Program The advantage of the BE$T program is that graduates can also apply for loans between $1,000 and $5,000 through CA$H that are approved by a group of their peers from a peer-support group. The loan amount is gradual. It starts with up to $1,000 and once it’s repaid, the entrepreneur can get a larger amount, and then a larger one. CA$H charges an interest rate of 4 percent over prime. “Most of the people in the BE$T program are unbankable from a commercial standpoint. They have this idea and no history of being profitable so no bank will really look at them,” Walton said. “This in effect is almost like a handshake arrangement to pay back, but they still have to prepare a business plan for an idea that makes sense.”
Microloans Many entrepreneurs move on after the BE$T/CA$H peer-lending program into a larger loan though CA$H or through a community-development group such as Mercy Corps. These loans are typically backed SEE FINANCING | 36
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FINANCIAL FOCUS | EDWARD JONES
Prepare for health care costs in retirement (Article for use by Edward Jones financial advisor Jay Seaton of Port Orchard.) As you save and invest for retirement, what are your ultimate goals? Do you plan on traveling the world? Purchasing a vacation home? Pursuing your hobbies? People often think and plan for these costs. Yet, too often, many of us overlook what potentially could be a major expense during our retirement years: health care. By preparing for these costs, you can help yourself enjoy the retirement lifestyle you’ve envisioned. Many of us may ignore the impact of health care costs because we just assume Medicare will pay for everything. But that’s not the case. In estimating health care costs during retirement, you may find that $4,000 to $6,000 per year per person for traditional medical expenses is a good starting point, although the amount varies by individual. Furthermore, this figure does not include the costs of long-term care, which can be considerable. To illustrate: The national average for home health aide ser-
vices is nearly $45,000 per year, and a private room in a nursing home is nearly $84,000 per year, according to a recent survey by Genworth, a financial security company. So what can you do to help cope with these costs? Here are a few suggestions: • Estimate your costs. Try to estimate what your out-of-pocket health care costs might be, based on your health, your age at retirement, whatever supplemental insurance you may carry and other factors. • Know the key dates. Things can change in your life, but try to identify, as closely as possible, the age at which you plan to retire. This will help you spot any coverage gaps before you become eligible for Medicare at age 65. Also, be aware of the seven-month window for enrolling in Medicare, beginning three months before your 65th birthday. • Review your insurance options. Medicare-approved insurance companies offer some other parts to Medicare, including Part D, which covers prescription drugs; Medigap, which covers gaps in Parts A and
B (in-hospital expenses, doctor services, outpatient care and some preventive services); and Part C (also known as Medicare Advantage, which is designed to replace Parts A, B, Medigap and, potentially, part D). You have several options for Part D, Medigap and Medicare Advantage, each with varying coverage and costs, so choose
the plans that best fit your needs. (To learn more about Medicare and supplemental insurance, go to www. medicare.gov.) • Develop a long-term care strategy. To meet longterm care costs, you could self-insure or purchase insurance coverage. To learn about long-term care insurance solutions, contact your financial advisor. • Invest for growth and rising income. Health care
costs typically rise as you move further into retirement, so make sure that a reasonable portion of your assets is allocated to investments with the potential for both growth and rising income. • Think about health care directives. If you were to become incapacitated, you might be unable to make health care decisions — and these decisions may affect not only your quality
Turn your retirement vision into reality (Article for use by Edward Jones financial advisor Jim Thatcher of Bremerton.) Retirement can be an exciting, active time of your life. But if you’re going to get the full benefits from your retirement years — which could last two, or even three, decades — you’ll need to have a vision for what you want to do. And to transform this vision into reality, you’ll need to take a “holistic” approach — one that involves a financial strategy, clear communications with family members and an awareness of the challenges that may stand in your way. To articulate and achieve your vision, ask yourself a
series of questions, such as the following: What do I want to do? When you retire, do you plan on traveling around the world? Purchasing a vacation home? Pursuing your hobbies? Or maybe you’re even thinking of opening a small business. Clearly, you have many options — and you’ll need to be aware that some choices are going to be more costly than others. If you can identify how you want to spend your retirement years and then put a “price tag” on your goal — or at least come up with a pretty good estimate of how much money you’ll need each year — you can SEE RETIREMENT | 9
t
of life but also your financial situation, and that of your family. Talk to your legal advisor about establishing a health care directive, which allows you to name someone to make choices on your behalf. Health care costs during your retirement may be unavoidable. But by anticipating these costs, you can put yourself in a position to deal with them — and that’s a healthy place to be.
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Entrepreneurs with a sustainability pitch could win $20,000 in Kitsap Bank contest By Tim Kelly Kitsap Peninsula Business Journal
On Earth Day, Kitsap Bank announced a competition called Edg3 Fund that will highlight sustainability initiatives by small businesses, and will include community input in selecting one business to receive a $20,000 award. “It’s for entrepreneurs who are dedicated to growing our community economically, socially and environmentally,” explained Shannon Childs, the bank’s marketing director. Those are the three aspects represented by the numeral that looks like a backward “E” in Edg3 Fund (yes, it rhymes with hedge fund — intentionally). The aim of the contest is not just to pick a winner, but to discover and promote unique and creative ideas that small businesses are developing. Part of Edg3 Fund’s appeal for the bank is that “it reaches a different demographic than maybe we currently reach,” Kitsap Bank president and chief operating officer Tony George said. “I anticipate we’re going get (applications from) all kinds of different companies that we don’t even
Financial planner recognized as one of state’s top wealth managers SEATTLE — Peter Taafe, a financial planner with Ameriprise Financial who has offices in Silverdale and Belfair, has been chosen as one of Washington’s Five Star Wealth Managers for 2014. Peter Taafe Five Star Professional partnered with Seattle magazine to find wealth managers who satisfy 10
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know are out there.” A six-week application period for businesses will open in June, and after that an independent panel of evaluators will review the applications and select a group of 10 to 15 semifinalists. Those businesses will have a video presentation of their Edg3 Fund proposal posted on Kitsap Bank’s website and social media sites, and public comments will help determine the finalists, Childs said. The contest will conclude in September with an award ceremony — tentatively scheduled for Islandwood on Bainbridge Island — where finalists will make an in-person presentation in front of judges and a live audience. The judges will convene after the final presentations and then announce the winner of the $20,000 cash prize. “It is going to be subjective. The winner may not be truly
the best idea, it might just be the best pitch, and that’s part of the deal,” George said. “It’s all about telling your story.” The prize amount is in the neighborhood of what entrepreneurs typically hope to raise through an online crowdfunding campaign, and that’s by design. “We want to target those (businesses) that don’t normally qualify for commercial bank financing — the guy doing it on a shoestring,” CEO Steve Politakis said. “We realize that one of biggest barriers for entrepreneurs can be lack of funding, and we want to be able to help fund some of those great ideas in our back yard,” Childs said. Any for-profit business operating in a community served by Kitsap Bank is eligible to enter. The company has branches in Kitsap, Jefferson, Clallam, Mason, Pierce and King counties in Western Washington. There are no restrictions on number of employees, annual sales or other such criteria for Edg3 Fund applicants. Childs said they expect potential entrants will “self-select” and that applicants will be businesses for which a $20,000 infusion would be a significant amount of money. Only one will collect the prize money, but executive vice president and chief financial officer Alan Crain noted that the contest will provide valuable exposure to other businesses that enter. “We also think not just whoever’s the winner, but for the other participants, it will give them visibility that might give them access to funding” in the future, he said.
eligibility and evaluation criteria that are associated with wealth managers who provide quality services to their clients. Fewer than 6 percent of the 12,000 wealth managers in the Seattle area were selected. Taafe is featured, along with other award winners, in a special section of the magazine’s March issue. “It is a privilege to be part of this year’s prestigious list of award-winning wealth managers,” Taafe said. “I have been in the industry for more than 25 years and take great pride in what I do. I am dedicated to serving my clients through
education, guidance and open communication.” The Five Star Wealth Manager award program, now entering its 12th year, is the largest and most widely published award program in the financial services industry. The award is based on a rigorous, multifaceted research methodology that incorporates input from peers and firm leaders along with client retention rates, industry experience and a thorough regulatory history review. For more information on the Five Star Wealth Manager research methodology, visit www.fivestarprofessional.com.
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8079 E Main St Manchester 360-871-0998 1-800-995-0242
4275 SE Mile Hill Dr Suite A Port Orchard 360-871-9707
8202 NE State Hwy 104 Suite 106 Kingston 360-297-8677
3500 Anderson Hill Rd Suite 101 Silverdale 360-308-9514
19032 Jensen Way NE Poulsbo 360-779-7894 1-866-779-7900
Jay Seaton, AAMS 600 Kitsap St Suite 102 Port Orchard 360-876-7538
Jim Thatcher 2135 Sheridan Rd Suite E Bremerton 360-373-6939
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MAY 2014 | 7
RETIREMENT PLANNING | JASON PARKER
Home-equity conversion mortgages Let’s look at a hypothetical example of how a homeequity conversion mortgage (HECM) could be used to help you increase your retirement income and be sure to leave a legacy to your heirs. Mr. Moon is 70 and Mrs. Moon is 68 years old. They are in very good health and have been retired for almost fifteen 15. When they retired, their pension was more than enough to cover all of their living expenses. During the last 15 years, they have seen their medical costs rise substantially, their property taxes increase, and the cost of living increase, which has eaten away at their modest retirement savings. So now they are feeling an income pinch. Mr. Moon is considering going back to work, and they have been taking aggressive steps to cut their expenses. In fact, they are driving a car that is 20 years old, they have canceled their cable television, and they are considering not taking all of their prescriptions to try and save a few extra dollars. Before Mr. and Mrs. Moon retired, they had paid off their home. Their home is by far their largest asset, and if they had to sell it today, they could probably sell it for $300,000. They think selling their home would free up the capital they would need to live more comfortably. So they start looking to down-
size. Unfortunately, what they find is that even the smaller decent homes in nice neighborhoods are going for around $300,000, so they will only break even. They do not want to move into an apartment; in fact, they don’t want to move at all. They have lived in the same home for more than 30 years, and they have a lot of wonderful memories, an incredible garden, great neighbors, and they are comfortable. When I talked with Mr. and Mrs. Moon, I asked them whether they had ever considered using a HECM. They said yes, but they didn’t like it because they have two children, and it was important for them to leave something to the kids. I asked whether the kids would want to live in the home. They said no, the kids would probably sell it and split the proceeds. Leaving a financial legacy to their children was important to them, but leaving the home to the children was not as important. So I asked them this question, “How much would you like to leave to each of your children?” After a little discussion, they came up with $100,000 for each child. At our second appointment, I asked the Moons whether they would be interested in a solution that would increase their income by about $700 per month and also guarantee that each of their children would receive a $100,000 inheritance. There was no hesitation and an emphatic YES. For this particular couple, we were able to use a
Kitsap Bank opens loan office in Bellevue Kitsap Bank now has a presence in Bellevue with the opening of a loan production office there on April 7. The new office is located at 11711 SE Eighth St., Suite 310, in the Bellevue Gateway Building. Paul Sabado, a veteran banking executive who joined Kitsap Bank a few months ago as senior vice president and SBA manager, will be managing the Bellevue office. “The opening of a new loan production office in King County will allow Kitsap Bank the opportunity to better meet the needs of existing and new loan customers,” CEO Steve Politakis said in a news release. “We look forward to contributing within this vibrant market.” Kitsap Bank is headquartered in Port Orchard and operates 21 locations six counties in Western Washington.
HECM to generate a guaranteed income stream of $1,000 per month for the rest of their lives as long as they lived in their home. From that $1,000, we used $302.14 to buy a secondto-die guaranteed universal life insurance contract that would pay an in-
come-tax-free death benefit of $200,000 upon the death of the second spouse, with each child listed as a beneficiary at 50 percent each or $100,000 for each of their two children. The guaranteed death benefit was to age 110, so it is highly unlikely they would outlive the insurance contract. This leaves them with $697.86 per month to make ends meet. Now as with any plan-
ning, advantages and disadvantages exist, and you should consider all of the different what-ifs, costs, and risks. While this type of planning is certainly not appropriate for everyone, it obviously accomplished the desired goals for Mr. and Mrs. Moon and might also be an option for others who have paid off their home, but are now at risk of losing their retirement lifestyle due to lack of retire-
ment income. Please consult a licensed professional before making any changes to your financial plans. • Jason Parker is the president of Parker Financial LLC, a fee-based registered investment advisory firm working primarily in wealth management for retirees. His office is located in Silverdale. Follow his blog at www.soundretirementplanning.com.
8 |MAY 2014
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ACCELERATE KITSAP | KELLY DEIS
10 ways to fund your business: Which one is right for you? So, you have a great idea for a start-up or you want to expand your current business. You have the perfect business plan and are confident that both revenue growth and profitability are sure-fire. Problem is, you don’t have the capital to fund the start-up or expansion. If that is the case, here are 10 ways to fund your business. Which one is right for you? 1. Bank Loan or Line of Credit Borrowing from a bank is probably the most traditional way of funding a business. This can take the form of a traditional loan or line of credit. Some banks may require an SBA guarantee, which is a little more expensive than a bank-only loan. Others may require covenants, or conditions, within which the business must perform. Bankers will review your historical performance and business plan in great detail. Assuming that these pass muster, the bank will require collateral in the form of inventory, equipment or even your house and, in many cases, will insist on a personal guarantee. Bank loans are debt financing requiring periodic payment of principal and interest. However, they do not require you to give up equity in your business; if your business takes off, you keep the profits (after debt repayment). 2. Leases Consider leasing rather than purchasing major pieces of equipment. This will free up cash and potentially mitigate the need for outside financing. Similar to a car lease, you don’t own the asset and there is a finite term for use of the asset. 3. AR Factoring Businesses can “factor” their receivables to obtain cash up-front. In this case, you sell your receivables to a factor, who makes an advance payment to you for some portion of the total receivable amount. The factor
then collects from your customer(s) and pays the balance to you, less a commission and other fees. Factoring can be expensive, but can also help smooth working capital ebbs and flows. However, the factor owns your receivables and may require that checks be written directly to them. This may confuse your customers and/or cause concern about your liquidity. 4. Home Equity Taking out a home equity loan is a good option for those who have built-up equity in their homes. The rate and terms are generally more attractive than commercial loans and they do not require the track record or due diligence necessary for bank financing. The risk however is if the business fails, or you fail to meet the terms and conditions of the home equity loan, you risk foreclosure of you home. Given the recent downturn in the housing market and the more stringent lending requirements of banks, this may not be an option for many potential borrowers. 5. Rollover as Business Start-up (ROBS) Also referred to as a SelfDirected 401k, this enables small business owners to finance their business with their tax-deferred retirement savings (such as IRAs and former employee 401ks) without the penalties normally associated with early distributions. And, while it is attractive because it provides cash for the business debt-free, you do risk your retirement savings if your business does not perform as expected. If you want to consider this option, be sure the ROBS is set up and administered correctly. 6. Credit Cards Credit cards are a quick and easy way to fund anything that can be purchased with plastic.
But, buyer beware. Interest rates for credit cards are probably the highest in the market. And, while the minimum payment may be appealing, the debt balance can build quickly. If
the business cannot make payments, it could force the business owner into personal bankruptcy. Credit cards should only be used for expenditures that can be paid back quickly. The owner should keep an eye on balances to be sure they remain within a reasonable limit. 7. Friends and Family If they have money to invest, friends and family can be another source of fund-
ing for start-ups and small businesses. Often business owners seek this alternative when either bank financing is not available or the potential opportunity is so attractive that they want to keep it “in the family.” Friends and family typically require less due diligence and contractual requirements than traditional loans. And, there is often flexibility in interest rates and payment terms.
Financing from friends and family can be structured as either debt or equity. The downside to this type of financing is obvious. Losing your in-laws’ money could cause some pretty chilly holiday dinners. 8. Equity Investors Equity investors can take different forms — from angel investors to venture capitalists. Both are looking for a fairly significant SEE 10 WAYS | 9
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then create an appropriate investment strategy. Such a strategy will include both your need for growth — during your pre-retirement and retirement years — and your need for income, especially during your retirement years. Your investment strategy will also need to be based on your risk tolerance, family situation and time horizon — how many 10 WAYS | F ROM 8
return on investment – so your business idea better be compelling. Angel investors are good options for start-ups and early stage companies. Although investment levels are low relative to venture capitalists, angels often contribute business experience and connections which the entrepreneur might otherwise lack. The challenge is finding the willing and able angel that you want to partner with. Venture capitalists are serious investors looking to make a return in a relatively short period of time. This type of investment is appropriate for fast-growth companies that are beyond the start-up phase and who have a clear exit strategy. It goes without saying that all equity investors have some ownership interest in your business. And, with that comes the challenge of managing potentially divergent interests. 9. Strategic Equity Partners Strategic equity partners are generally part of the supply chain – either they manufacture the product you sell or they are the wholesaler/distributor for the product you manufacture. If you have a strategic partner and they are well capitalized, there is the possibility that they might take an equity interest in your company. In this situation, they invest in your company for an ownership interest. And, presumably you maintain a friendly and mutually ben-
MAY 2014 | 9 years you have until your retirement. What “roadblocks” might I encounter? As you work to achieve your retirement vision, you may well encounter some roadblocks along the way. One significant roadblock is the amount of health care expenses you might face during retirement. Many people think Medicare will cover everything, but that’s not the case — in fact, you could easily eficial business relationship. The downside is that there is the potential for discord should either of you wish to deviate from the status quo. 10. Crowdfunding Crowdfunding is the new buzz in small business funding. Crowdfunding sites allow businesses to pool small investments from a number or investors instead of needing to look for a single investor. Crowdfunding can be paid back with proceeds from future earnings, with product or even with a small share in the company’s equity. There are a number of crowdfunding sites, so read the fine print and choose one that best meets your needs. There are a variety of business financing options available. But, like most things in life, there are trade-offs. So consider your objectives, evaluate the alternatives and choose wisely. • Kelly Deis is the president and founder of Soundpoint Consulting (soundpointbusinessconsulting. com), a business consulting and valuation firm focused on helping companies grow profitably through executable strategies, operational improvements, sound financial management, and reliable business valuations. She is also a volunteer mentor for Accelerate Kitsap, a nonprofit business mentoring organization that helps local business owners grow their companies. You can learn more at AccelerateKitsap.org, or contact Deis at 206-842-4922.
spend a few thousand dollars each year, out of pocket, for health care costs. And since these costs typically rise as you move further into retirement, you’ll need a reasonable portion of your assets to be allocated to investments with the potential for rising income. Even beyond normal health care costs, though, you’ll need to be aware that you could eventually need some type of long-term care, such
as a stay in a nursing home or assistance from a home health aide. These costs can be enormous; to cope with them, you need to prepare well ahead of time, so you may want to consult with your financial advisor for possible solutions. How can I protect my family? Your retirement vision can’t just involve yourself, or even just yourself and your spouse. To fully enjoy your retirement
years, you’ll want to know that you are helping to protect your grown children from financial and emotional burdens that could fall on them should you become incapacitated in some way. Among the steps you might consider taking is establishing a durable power of attorney, which allows you to appoint an agent to manage your financial affairs, make health care decisions or conduct oth-
er business for you during your incapacitation. Consult with your legal advisor about creating a durable power of attorney. You will find that having your retirement vision come to fruition can be a great feeling. So, do whatever it takes to make it happen.
10 |MAY 2014
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Improve payment processes with integration By Donald Brown For the KPBJ
You’ve probably heard the saying that there’s nothing good that cannot be improved on. In the changing world of payables, this rings particularly true. Today’s payment processes are impacted by several friction points that slow the process down. But as we look to tomorrow, emerging technologies are creating a payables environment that is increasingly more cohesive and conducive to improving the connection between buyers and suppliers. In a perfect world, buyers and sellers would be able to seamlessly complete transactions using straightforward, automated processes. All elements of the buying process — including contract terms, logistics, insurance, remittance, payment options, currency and financing — would be transparent and connected within the process. While we’re making progress, today’s processes remain bogged down by an infrastructure that still requires too much manual intervention. The impact on businesses is twofold: they remain reliant on paperbased processes; and they are caught between poorly integrated systems that
don’t communicate effectively between one another. Invoices continue to be received through multiple channels (mail, email, fax), which only increases the challenge of seamlessly connecting invoice receipts to purchase order matching, approval and payment workflow. Another point of friction many businesses confront is the lack of visibility into all areas of the buying process by buyers, sellers and their banks or financial service providers. Communication and dispute resolution actions related to purchases are often performed outside the buying process and rarely include all parties involved. This leads to time delays, mistakes and missed opportunities for all parties involved in the transactions. Organizations need to understand the payment ecosystem, which entails two distinct sides with often competing objectives. — Buyers procure a product or service, and they make payment to the seller. It is in the buyer’s interest to maximize time between procurement and payment. — Sellers receive an order and deliver a product or service to buyers, along with an invoice to collect payment. It is in the seller’s best interest
Low pay, commute top reasons for stress in worker survey Small paychecks and long commutes are delivering a one-two punch to American workers, as eight in 10 employed adults in a survey say they are stressed out on the job. That’s according to data released in the 2014 Work Stress Survey conducted by Nielsen (formerly Harris Interactive) on behalf of Everest College. The telephone survey of 1,004 employed adults found that 80 percent of Americans are stressed by at least one thing at work, showing negligible improvement over 2013 (83 percent). The survey was conducted to coincide with April’s Stress Awareness Month, when health care professionals across the country join forces to increase public awareness about the causes and cures for the modern stress epidemic. For the fourth consecutive year, paltry paychecks were a top stressor, with 13 percent of adults ranking low wages as the most stressful aspect of work. Low pay shared the top spot with Americans’ commute to and from work, which jumped to 13 percent from 11 percent in 2012 and 9
to minimize time between delivery and payment. In most instances, organizations are both buyers and sellers, so the timing of payables and receivables is important to liquidity. Many organizations are moving toward electronic options that integrate with existing electronic payment options as a means to improve insights and efficiencies. The problem: this setup still lacks true integration and connectivity across the entire payment process. New payment processing solutions are dramatically strengthening the connection between buyers and suppliers. Payments solutions currently available simplify the exchange of documents in the procure-to-pay process, while new systems improve efficiency and reduce costs by removing paper from the buying process. Also, new electronic processes allow businesses to fully consolidate all payment types — check, wire, card, Automated Clearing House — into one file. This simplifies processing by combining payments into a single workflow that improves the speed and accuracy of payments that organizations make while freeing up resources to focus on more value-added activities.
percent in 2011, respectively. Unreasonable workload (12 percent) finished third as the one thing that stresses Americans the most at work, followed by annoying coworkers (10 percent), poor work-life balance (8 percent), working in a job that is not a chosen career (6 percent), lack of opportunity for advancement (5 percent), the boss (5 percent), and fear of being fired or laid off (4 percent). “When it comes to stress at the workplace, low pay and a long commute is a double whammy for American workers, especially for those who are experiencing both at the same time,” said Wendy Cullen, vice president of employer development for Everest College. When determining workplace stress, levels of income and education play a significant role in determining the top stressors, according to the survey. Low pay is most often cited among those with household incomes of under $50,000 and those with less than college educations. The highest earners and those with at least college educations, however, are more likely to cite unreasonable workload and poor work-life balance.
For example, a Purchase Card can enable businesses to streamline the payment process, reduce costs and take advantage of vendor discounts. A client of mine was using a brand name credit card, and the interchange for his vendor was roughly 4 percent. When they switched to our purchasing platform, the interchange to his vendor was decreased, which allowed my client to go back and ne-
gotiate better terms. The client was able to negotiate a 0.75 percent reduction in pricing because he was reducing his vendor’s costs. There is still room for improvement. The true value will be realized when integrated payment processes are developed that relieve the “pay slow, collect fast” tug-of-war between buyers and sellers. The good news: these technological advances are on their way. Until
then, organizations should continue to invest in collaborative trade and dispute resolution processes that are designed to strike the right balance to best suit the collective needs of both buyers and sellers. • Donald Brown is a vice president in KeyBank’s South Puget Sound District. He can be reached at 253-358-2499 or donald_x_ brown@keybank.com.
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286 4th Street, Bremerton WA 98337 | 360.479.3579 | bremertonchamber.org
Armed Forces Festival Schedule May 7th - 7:00 pm Ambassador Scholarship Program Keyport Museum May 8th - 6:30 pm “Defending Your Voice” Author presentation Kitsap Regional Library Downtown May 9th - 7:30 am & 1:00 pm Pepsi Armed Forces Golf Tourney Gold Mountain Golf Complex May 10th - 10:00 am Military Culinary Arts Competition Olympic College Student Center
Armed Forces Day May 17th 7:00 am - 10:00 am Bremerton Central Lions Club Pancake Breakfast Fourth Street 10:00 am 66th Annual Armed Forces Day Parade 10:00 am Puget Sound Energy Heroes BBQ Pacific Ave 6:00 pm Bremerton Olympic Peninsula Navy League Gala Admiral Theatre May 18 - 8:30 am 6th Annual Armed Forces Festival & Washington Youth Academy Motorcycle Ride Pendergast Park
Monthly Chamber Events May 20th - 11:30 am May Chamber Luncheon (Special Military Veteran Speaker) Gold Mountain Golf Complex May 22nd - 5:30 pm After Hours Networking Event Kitsap Bank Downtown Branch
Armed Forces Festival
Annual Bremerton tradition full of festive fun May is a busy time for Bremerton! Planning and preparation for Armed Forces Festival are in full swing. This unique annual Bremerton tradition has grown from a parade into a full month of events. Kicking off the events is the Ambassador scholarship program, where students compete for college funds. This year the downtown library is hosting a Michael Strube President & CEO military author, there is a motorcycle rally to support the parade, and the Chamber hosts its annual Pepsi Armed Forces Golf tournament. On May 17th, Armed Forces Day, the festivities kick off with a pancake breakfast, and a “fun run”, then at 10:00 AM we host the nations Longest running Armed Forces Parade. The parade is
capped off by the Heroes Barbeque, and the Navy League Gala at Bremerton’s historic Admiral Theatre finishes off the celebration. Please check the Bremerton Chamber Website for dates, times, and locations, and help us honor hour Armed Forces like no other city in the nation!
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@bremareachamber
Chamber Member Spotlight
Purpose Boutique One of the unique new shops in Downtown Bremerton is Purpose Boutique. Opening in August of 2013, in a small section of the Amy Burnett building, they quickly outgrew their space and moved next door into the larger section of the building. Boasting Our Purpose is to the motto “Our Purpose is to empower freedom empower freedom through style”, they have quickly become the through style” hottest boutique in town. Owner – Owner Christie Johnson Christie Johnson states “We donate to two specific charities, ‘Hope for our sisters’, a charity that supports exploited women, and ‘Misssey’, whose mission is to support and inspire sexually exploited youth. Their proceeds have also funded 6.5 fistula surgeries for needy women.
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With new product in weekly, including cards and jewelry designed by exploited women, they have a revolving door of customers, and sales and staff are growing. Their online store also was just launched last week. Find them at 402 Pacific Ave and at purposeboutique.com
12 |MAY 2014
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Harrison begins search for Bosch’s replacement By Rodika Tollefson KPBJ contributor
Harrison Medical Center has formed a 10-member search committee that will select a replacement for CEO Scott Bosch. Bosch announced at the end of March that he will retire on July 31. Jim Civilla, chairman of the Harrison board of directors, will chair the search committee. The committee, which had its first meeting on April 21, is comprised of several board members as well as physicians from the community, members of staff and Franciscan Health System CEO Joe Wilczek —who has also announced his retirement, effective at the end of the year. The search will take four to six months, according to Civilla. The committee selected Spencer Stu-
art, a global executive search and leadership consulting firm based in Los Angeles, to conduct a national search. The firm will narrow down the pool of candidates to about 15 and the search committee will select the top five or six for interviews. The committee will make its recommendation to the board, and the board in turn will forward its endorsement to Franciscan for formal approval. The title of CEO for Harrison is changing to president to reflect the structure under Franciscan, following Harrison’s affiliation with the organization last year. But the duties remain the same, Civilla said. “We are still a local board and we will make decisions that are best for this community,” he said. “The new president will be someone that hopefully the communi-
ty will embrace. … We’re looking for someone who will be the face of Harrison because we’re still a local hospital.” With the Franciscan Health System affiliation process to take another two to three years to complete, the new president will be joining Harrison at a transitional time. The board of directors is also undergoing strategic planning and the president will get the chance to be involved in that process. “This will need to be a person who can balance being a local hospital with having an affiliation with a major organization,” Civilla said. The final candidates will each go through a host of interviews with several groups, including staff, over one or two days (a process sometimes referred to as
“loop interviews.”) Civilla anticipates that the top two finalists will be invited back with their families for more informal visits including dinner meetings. Civilla and Harrison board vice president Kelly Nelson, who is also on the search committee, will be serving at the same time on the search committee to replace Wilczek. “This will be a benefit because we’ll be able to make sure there’s a cultural fit between the organizations and the future leaders,” he said. Wilczek, who has been Franciscan’s CEO for 16 years, announced his retirement in February. The selection committee for his replacement will include three members each from the Harrison, Franciscan and Highline Medical Center boards, according to Franciscan spokesperson Scott
Port Orchard mourns loss of Moondogs owner By Chris Henry Kitsap Sun
Port Orchard mourned at the loss of Darryl Baldwin, owner of MoonDogs, Too restaurant and a wellrespected — make that beloved — downtown business leader. Baldwin, 57, succumbed to cancer, which he had battled for more than four years, his family announced April 23. A former president of the Port Orchard Bay Street Association, Baldwin is widely credited with setting downtown’s business scene on a positive trajectory. Laid back and upbeat, Baldwin helped rally fellow business owners around events, such as Ladies Night Out and Taste of Port Orchard, that draw visitors downtown. MoonDogs’ annual holiday dinners — free with donations to South Kitsap Helpline — drew locals together like a family. “My heart is just broken. I just loved Darryl. He was a really good guy,” said Mercedes Baudrand, owner of That’s Beautiful boutique. “He was always a peacemaker, an encourager ... selfless, very humble, very kind.” Baldwin had Merkel cell carcinoma, a rare form of
KPBJ FILE PHOTO
Darryl Baldwin, owner of Moondogs, Too in Port Orchard, is shown greeting friends at an event held in January to honor his contributions to the community. skin cancer. Through treatment, he was able to keep working and enjoy life, but in September, his condition worsened; his prognosis was poor. By December, Baldwin said he was “living on God’s time.” Raised on a North Dakota farm, Baldwin had a corporate career in engineering and manufacturing. A professed foodie with a passion for brewing his own beer, Baldwin bought MoonDogs seven years ago and built it into a thriving sports pub. The place has been a bar or pub back to the early 1900s. Under Baldwin it flourished, recession and all.
“My hat’s off to him because he put his whole heart and soul into it. He was very successful,” said former landlord Ron Rider, from whom Baldwin bought the building at 714 Bay St. in 2012. “There’s going to be a big hole in the community. We just hope somebody can fill his shoes and do half the job he did. He was absolutely wonderful for downtown Port Orchard.” With Baldwin leading the pack, MoonDogs — Port Orchard’s answer to Cheers — was a big tent that gathered everyone, from city officials at breakfast meetings, to midday cribbage players to last-call karaoke stars. “Darryl created a place, a space for the community to get together and to be comfortable,” said Bek Ashby, a member of the merchant association and City Council. And Baldwin shared the dividends of his success by hosting scores of fundraisers, many to benefit children and teens. He rarely turned down a sponsorship request. Of his giveback business model, Baldwin once said, “It’s almost like Karma. If you give to the community, the community will give back. Let’s give to the community so they know we care and they will think of
us when they want a hamburger.” The good Karma continued in December, when a stranger left a MoonDogs
Thompson. He said the names of the committee members are not being released. The process is expected to take about six months, and the committee will work with Michael Rowan, chief operating officer and president of health system delivery for Catholic Health Initiatives, parent company of FHS. “Our desire is to have a decision by the end of 2014, with the selected candidate starting in early 2015. The decision-making process will include feedback from stakeholder groups, interviews with CHI leadership and an executive leadership assessment,” Thompson said via email. The final decision about the new CEO will be made by Rowan and the selection committee, which was slated to meet toward the end of April to launch the process.
server a $5,000 gratuity and posted the evidence on Instagram under the handle #tipsforjesus. Staff who were on duty shared the surprise bounty; Baldwin took none of it. Employees said Baldwin was fantastic to work
for and really cared about his staff. Kitchen manager Dave Jones, hired about a month after the place opened in 2007, said no job was beneath the boss, from prepping food and washing SEE BALDWIN | 28
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MAY 2014 | 13
BUSINESS BRIEFS Kitsap Business Forum will focus on hiring, training employees
SAFE Boats delivers 29-foot security response vessel to Canadian police
Community lunch series will discuss economic development in Kingston
The next Kitsap Business Forum on May 13 will have a presentation on how to find, hire and train the best employees. The panel for the “Kitsap’s Dynamic Labor Pool” presentation will include Julie Tappero, owner of Westsound Workforce; Monica Blackwood of Rice Fergus Miller architects in Bremerton; and Samantha Powers from Olympic College. The forum will focus on: • the most effective avenues and methods to find the best candidates; • best practices for selecting the best hire; • key points to on-boarding new hires; • things to consider when developing on-site training programs for a business; • leveraging your effectiveness with casual labor, independent contractors and temp employees. The session is intended to help business owners building their teams; hiring managers; recruiters; human resources professionals; and solo-preneurs needing inexpensive help. The Kitsap Business Forum is free and is held at the Morgan Stanley office on the third floor of the Cavalon Building, 2011 NW Myhre Road in Silverdale. The sessions run from 7:30-9 a.m., with bagels and coffee provided by Panera Bread. To reserve a seat or for more information, call 360-6926800 or check online at www.KitsapBusinessForum.com.
Bremerton-based SAFE Boats International (SBI) recently delivered a new 29-foot multi-mission rapid response boat to the Windsor Police Service. The SAFE 29 Walk Around Cabin vessel is the first of its kind to be purchased in Canada and was scheduled to be launched and commissioned in an April 10 ceremony hosted by the Windsor Port Authority. The acquisition of the vessel was made possible by a collaborative effort between the town of Windsor Police Service and the Windsor Port Authority and a strategic The 29-foot “Defender” from SAFE Boats partnership with SAFE Boats International. The aptly named “Defender” is the most advanced small security vessel of its kind in Canada. It features a high-performance aluminum hull design, a fully climate-controlled walkaround cabin, SBI’s patented solid foam collar technology, and meets strict Canadian certification standards. The high-speed Defender is outfitted with twin 300hp fourstroke outboards, state-of-the-art navigation equipment, thermal imaging camera system, sonar capabilities and fire monitor. “Obtaining this boat was a huge collaborative undertaking and we’re very proud,” said Peter Berry, Windsor Harbourmaster. “We love the boat’s speed and maneuverability and no other manufacturer could meet our mission requirement. This is definitely the first of hopefully more SAFE Boats to come. The excitement within the department is immeasurable.” The Defender dramatically increases Windsor Marine Patrol’s effectiveness and interoperability with its crossborder partners such as U.S. Customs & Border Patrol, U.S. Coast Guard and St Clair County Sheriff in neighboring Michigan. They will work commonly with Ontario Provincial Police and the Canadian Royal Mounted Police in cross-border security, first response, search and rescue, dive missions and firefighting operations.
A community working-lunch series focusing on developing economic opportunities in the Kingston area is being offered by the Greater Kingston Economic Development Committee of the Kitsap Economic Development Alliance (KEDA). The last two sessions will be in Kingston on May 8 and 20. Business owners, public and community organizations, and interested stakeholders are invited to participate. “This is a unique opportunity for the Kingston community and all Kitsap County to learn from and interact with some very renowned experts in the arena of enhancing economic vitality within a community,” Jerry Kirschner, chair of the Greater Kingston Economic Development Committee, said in a news release. Each session will focus on topics relative to the economic future of the Kingston area and feature economic development experts who will discuss basic concepts of economic development, and provide valuable insights into implementation and impact on an unincorporated community like Kingston. Each session will provide an opportunity for community input and participation. Session 2 on Regional Strategies: Shaping Kingston’s Future will be held Thursday, May 8 , 11:30 a.m. to 1:30 p.m. at Kingston Cove Yacht Club. There is a $17 fee; register online at kitsapeda.org by May 5. Session 3 on Leveraging Regional Resources & Relationships will be held Tuesday, May 20, 11:30 a.m. to 1:30 p.m. at Kingston Cove Yacht Club. There is a $17 fee; register online at kitsapeda.org by May16. Contact Jerry Kirschner at kirschnerj43@gmail.com for additional information.
KEDA offering free workshops on government contracting The Kitsap Economic Development Alliance (KEDA) is offering numerous free training workshops for small business owners interested in expanding their business through government contracting. Participants will learn the basics of government contracting from 30-year veteran Mary Jo Juarez and Susan Veach, consultant and president of Accountability Plus, Inc., and various subject matter experts. These free training opportunities are funded through the Washington Procurement Technical Assistance Center (PTAC) program, which helps companies secure contracts for work with the local, state and federal governments. Pre-registration is required for all events. For more informtion, visit kitsapeda.org/ptac. All classes take place at the KEDA office, 4312 Kitsap Way #103 in Bremerton. Upcoming workshops: • May 20, 3-5 p.m. — State M/WBE (Minority & Women Owned Business) Certification Workshop. Sarah Erdmann, assistant director of operations for the Washington State Office of Minority and Women’s Business Enterprise, will conduct a workshop on OWMBE state certification. Hands-on assistance will be offered to those seeking certification. • May 21, 9-11 a.m. — Government Contracting 101 A general overview of how federal, state and local governments buy goods and services. Additional topics include governmental registrations, market research on what the government buys, marketing and selling your products and services, how government agencies advertise their procurements, how to locate subcontracting opportunities with government prime contractors and much more. • May 28, 9-11 a.m. — Accounting for Subcontractors (Part 1 of three-part series. Learn about the accounting methods that need to be in place and executed to insure timely payments and compliance. • June 24, 4-6 p.m. Prime Outreach: Being a Subcontractor (Part 1 of three-part series). This is a great opportunity for your company to connect with and learn from a prime contractor who is experienced on major milcon projects at Naval Base Kitsap. This Prime Outreach event will teach you how to become a subcontractor and work effectively with the prime.
Kitsap Public Facilities District announces meeting changes The Kitsap Public Facilities District will hold its regular meetings in a new location. Meetings will be in the Cove Room of the Best Western Plus Silverdale Beach Hotel for the remainder of 2014. The district’s board meetings are held on the fourth Monday of each month, but the board decided not to hold a meeting in May because of a conflict with the Memorial Day weekend. Regular meetings will resume June 23.
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HUMAN RESOURCES | JULIE TAPPERO
Creating an Employee Volunteer Program can yield many benefits More and more business owners and managers find themselves “telling the story” of their company. Not only do the public and our customers want to know what we’re about, but so do our prospective employees. In fact, a recent Nielsen survey found that almost 50 percent said they’d reward companies with their money if those companies are giving back to society. This shifting paradigm encourages corporations to be more vocal and upfront about their support of good causes in the community. Businesses of all size are finding themselves creating Corporate Responsibility policies. In the past, it was common for companies to support good causes with their own dollars. But our shifting demographics have more people working and less people available to volunteer. As a result, more companies are recognizing the need to go beyond writing a check, and are developing an Employee Volunteer Program (EVP). They are learning that encouraging and supporting employee volunteerism is good PR, good for the bottom line, and good for the employees. Before developing an EVP, you should consider the mission and vision of your company. What types of nonprofits blend with your company’s goals and brand? What do your clients care about? Identify your company’s strengths and resources and consider what nonprofits intersect with those. The second step is to talk with your employees. By ascertaining their level of interest and passion for causes, you can merge your company’s goals with your employees’ interests. Your program will not succeed if your employees don’t have buy-in. And don’t underestimate the importance of support and involvement by the senior management team. The last step is to identify the needs in the community. There are many resources that can assist you with this, from the local Chamber or service club, to established nonprofits such as the United Way. Your company’s EVP can take many different forms, depending on your business model and resources. It can vary from putting on a one-day event, such as the Day of Caring, to giving employees paid time off to volunteer. It’s important that it suits your needs, matches your employees’ interests, and addresses a community need. Skills-based micro-volunteering has become very popular. This involves performing small tasks or projects utilizing existing skills. For instance, the annual Seattle Give Camp is a weekend event for coders and web developers. They spend the weekend creating and updating websites for nonprofit organizations. The volunteers have the opportunity to use their professional skills, network with like-minded peers, and make a big difference in a small amount of time.
Dollars for Doers is another avenue. These programs offer company contributions to nonprofits for which an employee is volunteering. It can be a grant type of application that an employee submits for a certain amount of money, or could be tied to the hours an employee gives. For example, some companies offer an employer contribution of $10 per hour for each hour an employee volunteers, with a maximum amount set. Many companies that can afford it allow employees to do some volunteer work on company time. If you decide this is something you’d like to do, create a policy so employees understand the parameters. Your policy should establish that volunteering must be done at times when it least impacts the business, state how many hours per year an employee can have, and describe which employees are eligible. Considerations can be made for full-time vs. part-time employees, those that are in good standing in their jobs, and volunteer activities that support the company’s mission and vision. A variation on volunteer paid time off is to implement a volunteer flex time policy. A flex time policy allows employees to alter their work schedule in order to accommodate volunteer activities. A third option is to have a company volunteer day, wherein company employees spend their workday in a volunteer activity together. A good program includes an element of recognition. You can promote employees’ volunteer activities on your website, in your newsletter, and in company staff meetings. Honoring a Volunteer of the Quarter or Year could come with a donation to their nonprofit of choice. Don’t forget that your company deserves recognition as well for supporting your employee volunteers. Our customers want to do business with corporations with a conscience. Be sure you give yourself a public pat on the back as well. Some companies have been especially good at this. Who isn’t familiar with Ben & Jerry’s Community Action Teams and commitment to making a difference in the world? If you’re a member of the 12th Man, you are no doubt proud of Russell Wilson’s regular visits to Seattle Children’s Hospital. And Washington companies, like Starbucks, are known for their generosity of time and money in their communities. A BLS study showed that a little more than 25 percent of employed Americans volunteer at some time during the year. But a study by United Healthcare showed that 84 percent said they would volunteer if their employer encouraged and supported it. We can only imagine what a difference our businesses could make in our community with a small change like adding an Employee Volunteer Program! • 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.
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PEOPLE IN BUSINESS Kitsap Bank hires chief lending officer Kitsap Bank has announced that Steve Maxwell has joined their executive management team as Executive Vice President and Chief Lending Officer. Maxwell brings 23 years of experience in commercial banking, and he most recently was a top regional executive with Key Bank. He is a 1990 Steve Maxwell graduate of Pacific Lutheran University, and has a master’s in Business Administration from Washington State University. Maxwell currently serves as a member of the Pierce County Economic Development Board, and is on the advisory board for University of Washington, Tacoma, as well as the advisory board for the Pacific Lutheran University School of Business.
Group Health adds three doctors to Kitsap clinics Dr. Thomas Wilder recently joined the Orthopedic Surgery Department at Group Health Sil-
verdale Medical Center. Wilder, who went to medical school at the University of Washington and completed his orthopedic surgery residency at the Mayo Clinic in Rochester, Minn., is a former Group Health physician. He worked at the Group Health Redmond Medi- Dr. Thomas cal Center for 15 Wilder years and is rejoining Group Health as an associate after many years of practicing in Silverdale on a locum basis, serving as a temporary replacement for doctors and clinics in Silverdale. Dr. Elizabeth Faust and Dr. Rebecca Fraynt recently joined the Group Health Behavioral Health Services department at the Brem- Dr. Elizabeth erton Behavioral Faust Health Clinic. Faust is an adult psychiatrist who comes to Group Health from the VA Health Care System in Iowa City, Iowa, where she worked as a staff psychiatrist and an as-
sistant professor at the University of Iowa. After medical school at Texas A&M University and serving five years in the Navy, she completed her psychiatry residency training at the University of Wisconsin. Fraynt is a psychologist who came from Kaiser Permanente in Mountain View, Calif., where she was a post-doctoral resident. She Dr. Rebecca earned her PhD in Fraynt clinical psychology from the University of California, Los Angeles.
BI Downtown Association director taking Seattle job The Bainbridge Island Downtown Association (BIDA) announced that Executive Director Andie Mackin will be leaving later this month to take a Andie Mackin position with the Downtown Seattle Association as resource development manager. Mackin, who’s been with the
BIDA for the past five years, said it’s been a privilege to work with dedicated business owners and community leaders on the island. “I have learned from some deeply committed people about what makes a downtown successful, and that will continue to guide me in my work with the Downtown Seattle Association,” she said. BIDA board of directors president Tim O’Brien said Mackin “made such a positive impact in fulfilling the mission of our downtown association here on Bainbridge. ... Her unique blend of leadership skills, operations experience, and fundraising success have been instrumental in solidifying BIDA as a model Main Street Historic Preservation program for the state.” Mackin will remain in an advisory capacity for the Bainbridge Island Downtown Association and provide continuity through the transition period with the new executive director. The organization is accepting applications for executive director, and applicants can request the job description by emailing jobs@bainbridgedowntown.org. For more information, contact the downtown association at 206-842-2982, or visit www.bainbridgedowntown.org.
WWU hires director for Kitsap, Olympic peninsulas Candice Merrill has been hired as Western Washington University’s director of operations on the peninsulas. She will manage operations and programs at the Western Washington University Center at Olympic College in Poulsbo, which is a collabo- Candice ration between the Merrill two schools. The third partner in the regional alliance is Peninsula College in Port Angeles. Through the partnership, Western offers degree programs, professional development opportunities, a lecture series, and programs for youth grades K-12. Merrill has 12 years of experience helping campuses adapt to the changing needs of students and assisting distance and adult learners navigate university systems. She has a master’s degree in Public Administration from the University of Montana, and a certificate in Distance Education from the University of WisconsinMadison.
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Outdoors advocates called to represent region A Q&A with Kitsap’s members of a state task force focused on outdoor recreation, parks By Tim Kelly Kitsap Peninsula Business Journal
Two Kitsap County representatives are among 28 statewide appointed by Gov. Jay Inslee to a Blue Ribbon Task Force on Parks and Outdoor Recreation. Patricia Graf-Hoke is executive director of Visit Kitsap Peninsula, which manages cooperative tourism marketing for Kitsap County and its communities. Ben Klasky is president and CEO of Islandwood, an outdoor learning center on Bainbridge Island. The task force, which held its first meeting April 9, is charged with development of an action plan and recommendations to manage, transform and leverage Washington’s outdoor recreation assets and state programs. The goal is to increase outdoor recreation activities and promote recreation-related jobs and business. Washington’s Tourism Department was eliminated a few years ago due to state budget cuts, and the Legislature has drastically diminished funding for state parks the last few years. Revenue from sales of the Discovery Pass (required for most state park visits) has fallen far short of projections as a replacement source for parks funding. The Kitsap Peninsula Business Journal asked Graf-Hoke and Klasky to respond to questions about their roles on the task force and what it can accomplish. The responses they submitted by email are presented below. KPBJ: Has Gov. Inslee asked the task force to focus primarily on promoting outdoor recreation and tourism as drivers of economic development? Or does he want the panel also to consider ways to boost funding for state parks? GRAF-HOKE : In the Governor’s Executive Order, one of the many goals of the task force is to identify opportunities to create long-term sustainable funding sources for Washington state parks and other recreational lands and infrastructure managed by the departments of Fish and Wildlife and Natural Resources. Presentations by representatives from various state agencies and public comment from private-sector groups underscored that parks and other recreational lands are vital not only to the state’s economy, but local economies as well, and finding funding strategies to ensure access to those lands is a priority. At this point, the task force is in a discovery process. The final report will include specific recommendations regarding funding and other strategies to achieve the goals outlined in the Executive Order and Charter. KLASKY: Gov. Inslee has given us flexibility to address how outdoor recreation affects our state in multiple ways; economic development and funding for state parks
will certainly be addressed. But from a big picture this is also a demographic issue. At IslandWood we serve thousands of elementary school students every year from some of the most diverse communities in the Patty Grafregion. We think it’s vital Hoke to increase access to nature for kids from the full demographic spectrum. The reality is that Washington’s outdoor recreation users are predominantly white and older. We are determined to connect more young, diverse people to the outdoors, to Ben Klasky help them become lifelong outdoor enthusiasts. KPBJ: What strategies will you pursue to establish more relationships among business, nonprofits and tribes to transform state parks and recreation? Klasky: Success will likely rely on using a collective impact approach. The task force has many varied groups, from REI to the Sierra Club to IslandWood representing the outdoor education sector. This diversity of groups highlights the importance of outdoor recreation as an issue – and how it affects Washington’s education, health and economic viability. Together, we can deliver programs that drive kids outside, creating a new generation of consumers – and conservationists. GRAF-HOKE : One of the goals of the task force is to work with all sectors, both public and private, that are involved in parks and outdoor recreation. The mission is to ensure that all stakeholders from across Washington state that represent a constituency of users and groups — related to hunting and fishing, skiing, hiking, walking, running, camping, boating, diving, birding, paddling, mountain and road cycling, ATV use — have a chance to share their opinions about what is working and what’s not. Each group has a point of view about current or pending state legislation and regulations that may be impeding that sector’s ability to serve the pubic or achieve its maximum economic potential. As a member of the task force, one of my goals is to look at the needs and concerns of each stakeholder group and look at opportunities to collaborate to increase cost efficiencies, access and shared economic benefit. Another important goal of the task force is to look at the health benefits related to outdoor recreation and could easily include cross-partnerships between schools, tribes, agencies servicing families, and private businesses including healthcare providers and retailers.
KPBJ: What do you personally bring to the table to help the task force develop a viable action plan and recommendations? Why do you think you can be a leader for the county and state’s economic interests? GRAF-HOKE : My professional expertise and experience involves collaborating with the public and groups with diverse views to find common ground and identify mutually beneficial strategies and goals. It takes patience, perseverance, an open mind and willingness to think outside the box to find equitable solutions. As a member of the task force it’s my job to learn everything I can about the unique needs, concerns and contribution of each stakeholder group and to fairly share their views with the task force. That includes private-sector recreation groups and businesses that create thousands of jobs and billions in tax revenues, and environmental groups, state and local agencies and municipalities that see themselves as the primary stewards of parks and other recreation lands and waterways. One of my goals related to tourism is to explore options to encourage state and local park and recreation agencies to work in partnership with the private sector on marketing efforts. We need to see if we can do a better job cross-selling services to increase efficient use of tax dollars. In the 33 years that I’ve lived and worked in Kitsap, I’ve participated in numerous planning efforts that included elected officials, government agencies and departments, nonprofit groups, businesses, members of the general public, and special needs groups, and I understand that gathering information from all groups is important. Everyone needs to be heard. I believe the leadership role of task force members is to help everyone see that the only solution, the only path to success, is for public and private sectors to work together as united partners for the benefit of the environment, better quality of life, and economy. KLASKY: In 2008 I served on the No Child Left Inside Advisory Commission, established by the Washington State Legislature, which established a $1.5 million fund to support outdoor education programs statewide. This process included working with Washington State Parks, which was the government administrator of the funds. This experience helped me see the value in working toward tangible goals (the fund got over 200,000 diverse youth outside to play, serve, work and learn from outdoor experiences.) In addition, I’m tapped into current trends in this space, because I’ve been speaking and writing nationally on the importance of getting kids outside: http://www.huffingtonpost.com/ben-klasky/ and https://www. youtube.com/watch?v=ArhjLa4xbNk. KPBJ: What’s your philosophy of how outdoor recreation connects with Kitsap’s economy? What do you see happening that demonstrates that connection? GRAF-HOKE : In 2009, Visit Kitsap Pen-
Additional passenger ferry service between Bremerton, Port Orchard set for summer The City of Port Orchard, The Port of Bremerton, the City of Bremerton and Kitsap County are sharing the cost of subsidizing additional foot ferry service during the summer between Port Orchard and Bremerton. The one-way fare is $2 cash per person, and children under 5 ride free. Ferries will depart Port Orchard on the hour and half-hour, and depart Bremerton at :15 and :45 past the hour. The extended ferry service will be in operation (after the regular Kitsap Transit schedule) from May 23 through Sept. 1 on the following schedule: Fridays from 9-10:30 p.m. Saturdays from 8-10:30 p.m. Sundays from 10 a.m. to 6 p.m. Additional hours are scheduled for the following special events and holidays: • Kitsap Harbor Festival; Sunday, May 25, from 9 a.m. to 7 p.m. • Fathoms O’Fun parade weekend; Sunday, June 29, from 9 a.m. to 6 p.m. • Fathoms O’Fun; Friday, July 4, from 3 p.m. to midnight. • Bremerton Beer Festival; Saturday, July 12, from 8-10:30 p.m. • Mustangs on the Waterfront; Sunday, July 27, from 10 a.m. to 6 p.m. • The Cruz; Sunday, Aug. 10, from 8 a.m. to 6 p.m. • Blackberry Festival; Sunday, Aug. 31, from 9 a.m. to 8 p.m. • Blackberry Festival; Monday, Sept. 1, from 10 a.m. to 6 p.m.
insula initiated a branding campaign — “The Natural Side of Puget Sound” — to specifically promote the region’s natural assets, which include a wide range of outdoor recreation activities. Today Kitsap is host to some major outdoor recreation events, including the Stottlemeyer 30/60, the largest mountain bike race in the state, and the popular Bainbridge Island Chilly Hilly and Kitsap Color Classic rides, led by the 10,000-member Cascade Bicycle Club. There are dozens of other major bike rides, marathons and other outdoor events that attract thousands of visitors to the Kitsap Peninsula region. In 2013, REI decided to locate a store on the Kitsap Peninsula to serve the growing population of outdoor recreation customers. The 25,000-square-foot retail space provided 55 jobs and direct economic benefits to local developers and businesses. The state estimates that the outdoor recreation industry generates $22 billion in sales and $1.6 billion in tax revenue. We’re looking at that data to see if we can better gauge the impact on Kitsap. The Olympic Outdoor Center located in Port Gamble estimates that paddling alone generates about $1.7 million in sales for Kitsap businesses. In the past two years Visit Kitsap has worked in partnership with Kitsap County, local organizations, port districts and businesses to create and grow the Kitsap SEE Q&A | 18
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Conference Center expansion points toward economic boost
Arne Bakker, general manager of the Kitsap Conference Center in Bremerton, says the center’s recently completed expansion will result in more bookings.
A $1.1 million investment already paying dividends, operator says By Jennifer Hayes KPBJ contributor
Two months after its expansion into additional space, the Kitsap Conference Center on Bremerton’s downtown waterfront is projecting a 10 percent increase in sales by next year based on current and expected bookings. “We have definitely seen a bump in business. There’s more flexibility now and that allows multiple groups to come in at the same time,” said Arne Bakker, general manager for the Kitsap Conference Center. The city-owned facility is operated by management firm Columbia Hospitality. A remodel of 6,000 square feet on the third floor of the Kitsap Transit building adjacent to the conference center was completed in March. That greatly increased the amount of space the conference center could book for events. Previously, only the 10,000-square-foot main ballroom and the 1,600-square-foot Fountain Room, which overlooks the city’s Harborside Fountain Park, could be used for indoor functions. Bakker noted that the new available space can be divided into smaller rooms for individual groups or to create opportunities for one group to book multiple rooms. However, the biggest impact he has seen is more multiday events on the facility’s calendar. For example, Bakker said the new layout attracted the attention of the state’s Habitat for Humanity organization, which fully reserved the Kitsap Conference Center for its annual training conference on May 1-3 because of the additional “breakout” spaces on the third floor. About 200 people will attend the event from across the state.
“We actually looked at the conference center last year before the expansion. While there was enough space on the conference center’s main level, there wasn’t
for three days in November. The national VFW also has reserved space for three days in 2018. “They wouldn’t have come here without the expansion,” said Bak-
“There’s more flexibility now and that allows multiple groups to come in at the same time.” Kitsap Conference Center GM Arne Bakker tor also has been hired to assist the sales manager with actively recruiting groups from across the region. Money for the expansion was supported with $400,000 from the Kitsap Public Facilities District, which originally financed the conference center PHOTOS BY MEEGAN M. REID/KITSAP SUN building 10 years The newly remodeled third-floor space looks out over the Bremerton Marina. ago. The city of Bremerton provided $500,000, ker. the capacity to accommodate the borrowing from a fund used to reThe average length of time workshops and the training sesplace city vehicles, which will be needed to finalize a booking runs sions that needed to be done. paid back to the fund with interbetween 6 months and a year for There just wasn’t enough room,” est. Kitsap Transit, the building’s each event at the conference censaid Daryl Daugs, executive diowner, contributed $200,000 to ter. Since starting annual sales rector of Habitat for Humaniimprove the elevators. The space projections in April, Bakker exty of Kitsap County and a board received moveable walls to split pects the numbers to show “a member of the state organization. up rooms, a small service pantry, real spike by this time next year.” After the expansion, the group all new lighting systems, state-ofBakker anticipates sales of $1.4 looked at the conference center the-art audio/visual equipment, million, an increase of 10 percent again. This time, the added space and new bathrooms. for next year. Prior to the expanmade the difference and they The city of Bremerton is leasing sion, sales growth hovered around were able to book it for the largthe third floor space from Kitsap 3 percent annually. er event. Transit. John Clauson, executive With new business coming in Other multi-day events redirector of Kitsap Transit, said from more events, Columbia Hosserved include GameCon, a local the expansion provides a benepitality has added six part-time gaming, anime and music confit to tenants as well as the comemployees, including wait and vention, for two days in July, and munity. With an additional tenkitchen staff, to support the addithe Peninsula Future Business ant contributing to maintenance tional bookings. A sales coordinaLeaders of America conference
costs, it has brought down common area costs for Kitsap Transit and others within the building. In addition, more people coming to town means more revenue going into public coffers through sales taxes, he said. As part of the lease agreement, the first four years of the lease are free to the city in exchange for the tenant improvements to the third-floor space, most of which was vacant for 10 years. In the fifth year, the city will pay $15 per square foot. The rate is based on current market conditions and the city’s 20-year commitment to lease the third-floor, said Paul Shinner, finance director at Kitsap Transit. “Before, we didn’t have the funds to do the build-out and tenants didn’t want to move in if we couldn’t do it for them,” said Shinner. With the improvements and a new tenant in the space, the expansion has created “a win-win” for the community, added Shinner. Other cities are following Bremerton’s lead to build tourism and drive economic development with publically owned conference centers. Roseville, Calif., and Tyler, Texas currently have plans in place to build new conference centers in their communities.
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REAL ESTATE / CONSTRUCTION BRIEFS Buyer found for Myhre’s building in Port Orchard The long-vacant Myhre’s building in downtown Port Orchard apparently has a buyer. Listing agent Bryan Petro of Windermere Real Estate in Port Orchard said a confidentiality agreement prevents him from disclosing any information until the pending sale closes. However, Petro did say “It’s a solid deal. It will close.” He expects the sale of the foreclosed property on Bay Street to close in mid-May.
Work on new shopping center may start soon
KPBJ FILE PHOTO
The vacant Myhre’s building in downtown Port Orchard.
The boarded-up two-story building that long housed Myhre’s restaurant and bar was gutted by fire in July 2011. The building has been vacant since then, although some restoration work on the roof and second floor
Q& A | F ROM 16
Peninsula Water Trails and showcase the region’s 371 miles of accessible shoreline. The Kitsap Peninsula Water Trails map was adopted by Kitsap County as part if its long-term Non-Motorized Plan, is part of the Washington Water Trails Cascadia Marine Trail, and on the verge of being designated a National Water Trail. Kitsap is also highly regarded as a popular destination for birders, scuba divers and boaters, attracting regional events and international visitors. KPBJ: How will you advocate for our county? It seems unique to have two members of the task force from one county — how are you going to use that to Kitsap’s advantage? KLASKY: It’s a pleasure to be serving alongside Patty Graf-Hoke of Visit Kitsap Peninsula. IslandWood is proud to be part of Kitsap and I hope to work with Patty to represent the county, while also keeping an eye to the needs of the greater state. IslandWood is having a positive impact on getting many children from our county outdoors. And, we’re not just working with kids. IslandWood is also partnering with the local military community to offer nature-based experiences for military families and veterans. We’ll bring this experience to bear on the committee to educate others about our successes, but also to help ensure we can keep doing this important work. GRAF-HOKE : Since this is a state task force, my role is look at the economic benefits and untapped potential that outdoor recreation has to offer related to the tourism industry. One of the mandates of the task force is to look at how to better support and expand recreation jobs, businesses and tourism across the state. This includes looking at current regulations related to hunting, fishing, use fees, etc. that may interfere with utilization and impede or limit GROWTH BUSINESSES DEVELOPMENT at a state and local level. We also think it is important
was done in the summer of 2012. The property went into foreclosure and the restaurant operator, John Lora, has been embroiled in bankruptcy proceedings and lawsuits over the restoration work.
to look at transportation, which has a huge impact on access and safety to recreation areas and activities. That includes working to ensure that bike lanes are included on roadways and bridges that connect communities and businesses. Since the state no longer has a tourism office, we need to clearly see the impact that has on Washington’s ability to compete with other states, especially Montana, Colorado, Oregon, Idaho, Utah and California, which are aggressively marketing their outdoor recreation assets. Montana, for example, spends $14 million on tourism marketing and is reaping the economic rewards. If Washington had a competitive tourism office, that would definitely be a benefit for all cities and counties, including Kitsap. However, until that happens, local entities like Visit Kitsap Peninsula will have to assume the responsibility to tell and sell the state’s story as well as Kitsap’s about its tremendous outdoor recreation assets. KPBJ: What will be some measurable ways to gauge the effectiveness of the action plan and recommendations the task force presents? KLASKY: From our perspective, we will know if we are succeeding if we see more kids from diverse backgrounds enjoying public lands, becoming advocates for our city and state parks, and lending voice to the need for safe outdoor spaces in all communities. GRAF-HOKE : That is a difficult questions to answer until we know exactly what recommendations the task force plans submit to the governor. When feasible, mechanisms to gather and measure data to determine efficacy and impact will be included. This is a very complex assignment that involves a large number of diverse groups, all who hope the final report will specifically address their concerns. The challenge will be to make realistic recommendations and submit an action plan that the legislature and others can act on that will generate meaningful, measurable results.
Plans for a new shopping center in Silverdale could move forward as early as this summer, and developers aim to have the new retail site done by August 2015, according to county officials. The project, called The Trails at Silverdale, will include a movie theater, restaurants, grocery store and retail shops on a 17.6-acre site on the north side of Silverdale, along Greaves Way and Clear Creek Road. Project plans and a land-use permit application were submitted to the county ear-
lier this year, according to county planner Dennis Oost. The county also is processing “mass grading” permits for the project, meaning there will be complete preparation for building, including demolition of a handful of vacant homes, said Jeff Rowe, assistant director of the county Department of Community Development. Construction will start near the end of June, if all appropriate permits are approved, said Richard Walker of Robinson Construction, a Bellevue-based company contracted with the project developer, California-based CenterCal Properties. No tenants have been named for the development.
KEDA’s PTAC – Procurement Technical Assistance Center - helps companies find & successfully achieve contracts for work with the local, state & federal governments.
Mary Jo Juarez, Business Consultant 30 years contracting experience with the federal government
Call 360-377-9499 to set up your FREE business consultation Upcoming PTAC Classes: Classes are free but pre-registration is required! May 20th 3-5pm - State M/WBE Certification Workshop (Woman & Minority Owned Businesses) May 28th 9-11am - Accounting for Subcontractors - Part 1 of 3 part series June 24th 4-6pm – Prime Outreach: Being a Sub Contractor Part 1 of 3 part series June 25th 9-11am - Social Media for Government Contracting: Expanding Your Marketing
Partner Event: June 18th 8am-3:30pm – NUWC Keyport Industry Day
Visit Kitsapeda.org/ptac for more information and registration or contact Theresa Mangrum (360) 377-9499 mangrum@kitsapeda.org
4312 Kitsap Way, Suite 103, Bremerton
360.377.9499 info@kitsapeda.org kitsapeda.org kitsapconnected.org
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Events And Activities VISIT the NEW HBA Website! www.kitsaphba.com On Line Registrations! Thursday, May 1 Developers Council, 7:30am HBA Tuesday, May 6 Golf Classic Cmt. Mtg., 4pm This is tentative. Please Verify. Wednesday, May 7 Auction Cmt. Mtg., 4pm Silverdale Beach Hotel Remodelers Council Mtg., 4pm HBA Thursday, May 8 HBA Luncheon, 11:30am Kitsap Golf & Country Club Joint Event with KCAR RSVP to HBA $15 per person Wednesday, May 14 Auction Cmt. Mtg., 4pm Silverdale Beach Hotel Monday, May 26 HBA Closed for Memorial Day Thursday, May 29 Executive Cmt. Mtg. 1:30pm Government Aff. Cmt. 2pm Board of Directors, 3:30pm All Mtgs. at HBA Friday, May 30 Affordable Housing Council Auction HBA Dinner – Yee Haw! It’s a RODEO! See Page 4 for Details or call the HBA. Membership Fact #5: Are you a member of SPIKE Club? All members that accrue 6 credits become SPIKES! You get credits by recruiting new members & when members you recruited previously renew their membership. It’s easy and so important to the HBA. Members ONLY -- To be entered to win the quarterly drawing, please email tosinski@kitsaphba.com and put this in the subject line: “Membership Fact #5 News”
May is Building Safety Month The Home Builders Association of Kitsap County has been supporting the construction industry in Kitsap since 1955. In our almost 60 years we have been active advocates for builders and consumers alike. Members of our Association must meet the requirements of the State by being registered, insured and bonded. There are too many illegal contractors in Washington State hurting professionals that carry the burdens of insurance and bonds and the consumers that get cheated out of a basic level of security and recourse. The safest thing consumers should do in May is to only hire registered, insured, and bonded contractors. The status of an contractor is easy to verify on the website of the Department of Labor & Industries (www.lni.wa.gov) by clicking on the “look up a contractor” link on the home page. In addition to encouraging consumers to do their due diligence, we are happy to be partnering on two important public outreach efforts this month. The first is with Kitsap Department of Emergency Management on securing homes to their foundations and the second is with Kitsap Department of Community Development on safe deck building. Not everyone wants to build their own home, but they may want to take on remodeling projects. These can be quite extensive like adding a bedroom or bath, or more common like replacing that old deck. Be careful! The current construction codes are complex and even that deck you think you’re going to slap up over a long weekend with some buddies is likely to be much more involved than the one you built with your Dad 15 years ago. Failing to do wthis right may result in an insurance liability or the inability to sell your home down the road. Besides making sure you’ve received the proper permits (Note: if you’re on a septic, have you received your clearance from the Kitsap Health District?), did you call 811 to get the FREE underground locate service? Don’t think you need to? Think again. The Home Builders Association is happy to provide Kitsap County with our mobile “deck section” that will provide an important visual aid to homeowners trying to build their new deck to current code. The deck section will be in the lobby of Kitsap’s Department of Community Development. View it when you attend one of two clinics this month on safe deck construction. If a new deck is in your future, please mark your calendar and attend either the May 2 or May 16 clinic in the Commissioner’s chambers just inside the Division Street entrance of the Kitsap County Administration building. Each clinic will be from 2 – 4pm. We are also pleased to work again with the Kitsap Department of Emergency Services, the jurisdictional building departments, the local chapter of the ICC, and Simpson Strong-Tie on another homeowner clinic about securing your home to its foundation. When the earth shakes, is your house secure? Please consider attending an important, free, clinic called, Bolt It/Brace It/Do It! The next course is being offered on June 6. Please register at www.kitsapdem.org. Whether you attend these clinics or not, you may decide hiring a professional would make more sense for your project(s). Be sure to use the HBA website www.kitsaphba.com to find our current members or just call our office (360-479-5778).
2014 Officers President...................Judy Mentor Eagleson 1st Vice President ..................... Kevin Ryan 2nd Vice President ...................... Jim Heins Treasurer ....................... Randy Biegenwald Secretary ...................... Dee Coppola, CGA Immediate Past President ...... Robert Baglio
2014 Builders & Assoc. Directors +ARLA #OOK s 7ALTER 'ALITZKI s 3TUART (AGER *OE (URTT s "ERNI +ENWORTHY s *OHN ,EAGE ,ESLIE 0ETERSON #'! s *IM 5LLRICH -IRIAM 6ILLARD s *IM 7AY #'"
2014 State Directors 2OBERT "AGLIO s *UDY -ENTOR %AGLESON *IM (EINS s *OE (URTT s *USTIN )NGALLS 2#3 Wayne Keffer, CGR, CAPS 2ON 0ERKEREWICZ s +EVIN 2YAN
2014 Alternate State Directors $ALE !RMSTRONG s *OHN !RMSTRONG +EVIN (ANCOCK s "RENT -ARMON
Life State Directors Bill Parnell
2014 National Directors *UDY -ENTOR %AGLESON s *IM (EINS Shawnee Spencer
2014 Alternate Natnl. Directors -ICHAEL "ROWN s *EFF #OOMBE
Life Directors 2ICK #OURSON s "OB (ELM s "ILL 0ARNELL *OHN 3CHUFREIDER s $ORY 3HOBERT *IM 3MALLEY s ,ARRY 7ARD
2014 Council & Chairs Build A Better Christmas ............................. ....................................... Randy Biegenwald Built Green .......................... 7ALTER 'ALITZKI By Laws & Nominations ...... Robert Baglio Developers Council.................Byron Harris Golf Classic..................... Shawnee Spencer Govt. Affairs Cmte ................... Kevin Ryan Remodelers Ccl Chair .................................. .......................... Wayne keffer, CGR, CAPS Membership ...............................Jime Heins Parade of Homes ..................................TBD Peninsula H&G Expo................. Lena Price Peninsula H&R Expo ..............Dee Coppola
HBA Staff & Support Services Exec. Vice President ....Teresa Osinki, CGP tosinski@KitsapHBA.com Admin. Coordinator ........Kathleen Brosnan info@KitsapHBA.com Events & Admin. Assistant .......Katie Revis hbaevents@KitsapHBA.com
Home Builders Association of Kitsap County 5251 Auto Center Way, Bremerton, WA 98312 s FAX (360) 479-0313
www.KitsapHBA.com
20 |MAY 2014
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Judy Mentor Eagleson Mentor Company
Teresa Osinski CGP
President, 2014
Executive Vice President
“We are from the Government and we are here to help.” That was the message from the U.S. Department of Housing and Urban Development (HUD) at a roundtable discussion jointly hosted by HUD and the City of Bremerton. The purpose of the roundtable was to gather together a diverse group of local leaders to identify some of Bremerton’s unique needs and priorities, and to identify how HUD and other federal agencies could help us achieve our goals.
I was recently speaking with someone about voting and like many conversations on this topic I was exasperated. The conversation wasn’t about politics it was about good old fashioned civics. Voting. It’s an honor. It’s a responsibility. I too often find myself talking to people that don’t vote. I don’t understand it and while it is far more common in people my age than in my parents’ generation, it is exceedingly common in young people. Why? What has happened?
Bremerton has gone through amazing changes in the last several years. These changes are beautiful and have created a new vibrancy in Bremerton we haven’t seen in years, but there is still so much to do. We need to finish what we started. People have taken big risks in Bremerton and we want them to continue to do so. For that to happen, we need a plan with commitments and a timeline.
It has me thinking and it should you too. Everyone who has the legal right to vote should be registered and should participate. But there is another school of thought on this and that is one where only the “informed” should actually cast their ballot. I can understand the concern. Those that only want informed voters participating are worried that the uninformed will cast bad votes – mess up the outcome. I think that is unlikely. But I’m an idealist. Can’t help it. I’ve always been this way. So in my way of thinking, voting is an interesting combination of civic duty and personal pride. When you vote, you have a vested interest in the outcome.
Sir Ernest Rutherford, winner of the Nobel Prize in Chemistry, said “Gentlemen, we have run out of money. It is time to start thinking.” We need to revisit how funds can be used vs. how funds have been used in the past. We need to be innovative with grants to make limited public money stretch further than in the past. We talked about employment, transportation, education, and infrastructure, among many other topics. Fox example, many homes in Bremerton, commercial buildings too for that matter, are in need of revitalization. Why is this? We need to isolate, and then remove, barriers to development and redevelopment. We kept coming back to incentives as opposed to mandates. How do we leverage private dollars to address out of date buildings? Tax credits are a limited resource but could be used, even one property at a time. Are zoning requirements conducive for redevelopment? What about the building codes – are they helping or hurting? We spent a lot of time addressing barriers – some real and some perceived. Greg Wheeler, Bremerton City Council President hopes to get more stakeholder involvement in their two year Comprehensive Plan review process to come up with answers to these barriers. HUD asked that we help them identify regulations that get in the way – give them specifics – and they will work with other governmental agencies, the IRS, Department of Transportation, etc, to also help come up with solutions. At the end of the day, we determined that partnerships are the key to finding solutions to the problems that confront us. Throwing more money at things is not the solution, but rather by using public funds as a catalyst, we can come up with creative and efficient change. Through partnerships, changes in policy and regulations, and creative uses of incentives, we will get the job done. Thanks HUD for coming to Bremerton. SMOKE DETECTORS SAVE LIVES: Keep you, your family, and your pets safe by properly maintaining your home’s smoke detectors. This is Building Safety Month and a perfect time to check the batteries in your smoke detectors. We always think we’re going to do it when we turn our clocks forward. Did you? If not, why not do it now? Twice a year replace the batteries. Pick a time that works for you like two special birthdays that are about 6 months apart, or two holidays like one in December and maybe Father’s Day or the 4th of July. Whatever works for you. Never remove the battery when you accidentally set off a smoke detector while cooking—chances are good you’ll forget to put it back in. Open a window or door to release the smoke instead.
I like the idea of people having to personally and intentionally register. I don’t approve of schemes where you do it as a part of some other government process (motor voter for example). The act of registering is an affirmation that this is something you care about. I realize it isn’t the whole deal because we have dismal voter turn-out numbers so simply being registered isn’t enough – but it’s something. It’s a first step. There are probably a whole slew of reasons that people don’t cast their ballots. Reasons likely range from feeling unprepared (fear) to being disorganized (forgetting). Today it’s all by mail. Back in the day you had to go to the polls, sign in, vote, and receive an “I Voted” sticker. It was an event. It was an accomplishment. I do miss those days. For those that defend their “non-voting” practice with the position that their vote doesn’t count, I have some thoughts to share. It is hogwash to suggest that your vote doesn’t matter. The only time that argument even comes close to making sense is in the Presidential election because of the role of Electoral College (EC). We won’t get into that here. But consider this; the ballot you receive has many items on it. We do not receive a ballot that is only for the President of the United States. Each ballot cast is one vote counted. Many years ago I worked for Sharon Nelson. She was the first female Chair of the Washington State Utilities and Transportation Commission, an attorney, and a member of the Consumer’s Union Board of Directors. She told me the closer to the people an elected position is held the more powerful the people’s vote is. She was right and here are a couple key examples: A few years ago we had a Governor’s race won by less than 150 votes. Not 1,500 or 15,000, but less than 150 votes. Here in Kitsap the Mayor of Port Orchard won on a margin of fewer than 10 votes! Your vote matters. Your vote counts. If you feel our elected officials aren’t in step with your thinking it could be because a majority of voters are impacting your “world” but not a majority of eligible adults (let alone even a majority of registered voters). Think about it. As far as being uninformed or casting a bad vote? The great thing about voting is you keep getting opportunities to do it. If you don’t engage you will never feel more confident about it. If you have the legal right to vote, please go online at www.secstate.wa.gov and register. It’s easy and it’s free. When you receive your ballot this summer (primary is August 5) fill it out and mail it in. If you don’t know how to vote on an item….skip it! It’s okay to fill out just part of the ballot. Your right to vote is a gift and a responsibility. I encourage you to honor it.
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Government Affairs Committee Kevin Ryan Tim Ryan Construction 2014 Chair
They’re Off and Running Spring is finally here and the HBA has kicked it off with its first round of candidate interviews for the many local elections to be held this year. In Horse Racing at the annual Kentucky Derby held the first week in May some call it “the greatest two minutes in sports.” This year with all the political activity I would venture to say with all the April election interviews, this could easily be the busiest run up to an election in quite some time. Interviews for County Commissioner District 3 were completed in late March between appointed incumbent Linda Streissguth (D) and Ed Wolf (R). After deliberating the HBA Board voted to endorse Ed Wolf (R) for this race. Ed Wolfe carried the vote due in large part to his background. Though a private sector attorney now, Ed has had a diverse career including active duty service in the U.S. Army, many years representing the United States on matters related to the world’s oceans and in particular environment and fisheries. He is a seasoned problem solver and honed his diplomacy skills working for several years at the U.S. Department of State. His local law practice has earned him great respect from Kitsap area courts and resulted in his selection as Judge Pro Tem in several Kitsap Peninsula courts. He is active in a variety of important civic organizations including Rotary, Boys & Girls Clubs, and the Olympic College Foundation. Ed’s background, depth of knowledge about Kitsap and its unique people and issues, as well as his career in leadership and problem solving were significant factors in selecting him to receive the endorsement of the Affordable Housing Council of the HBA of Kitsap County. Interviews began in March, and continued with two meetings in April. The County Assessor, Jim Avery has decided not to run for another term. That makes the Assessor’s seat “open” and there is a lot of interest. The Committee has now interviewed three candidates in that race. In March we interviewed Sean Smith (R) and in April Paul Andrews (D), and Gary Sobeck (D). As I write this I am hearing rumors that there are possibly two more Assessor candidates. The April interviews also included Legislative races in both the 35th and 26th District. Candidates for the 35th District House Position 1 are Kathy Haigh incumbent (D), Josiah Rowell (R), and Dan Griffey (R). In the 26th District House Position 1 race Dr. Nathan Schlicher (D), and appointed incumbent Jesse Young (R) were both invited, as were the candidates for House Position 2, Larry Seaquist, incumbent (D), and Dr. Michelle Caldier (R). The Kitsap HBA is the largest organization representing the building industry in the County. As members we sometimes forget that the Government Affairs meetings are open to all HBA members. As our election season ramps up plan to attend one of the many one-on-one interviews and let your voice be heard.
Guest Contributor: Elliot Eisenberg, Ph.D., GraphsandLaughs, LLC
Interest Rate Movements: What Are They Telling Us? Over the last eight months interest rates have gyrated more dramatically than in years. This process has not only whipsawed investors but seriously called into question the nascent housing recovery. After all, how can housing starts rise from their near historic lows if rates are one percent higher than they were in late spring and with interest rates expected to rise somewhat higher over the course of 2014? Is not the housing sector highly interest rate sensitive? And isn’t the Federal Reserve deliberately buying tens of billions a month in mortgage backed securities to keep 30-year mortgage rates low to help the housing market? Relax. While new residential construction is indeed interest rate sensitive, it is also heavily dependent on other macroeconomic factors and they will more than compensate for the recent rate rise. To use an analogy, interest rate movements are like a thermometer. A rise in body temperature may or may not be a good thing; it all depends on the initial level. A rise in body temperature of two degrees from 94 degrees to 96 degrees is excellent news and suggests a patient recovering from hypothermia. By contrast, a rise in body temperature of an adult from 102 to 104 is serious, and suggests a very ill patient in need of prompt medical attention. Changes in interest rates should be similarly viewed. Interest rates are the cost of borrowing money. When times are good and economic growth is robust, interest rates rise because investors borrow funds for investment purposes while households borrow to finance purchases of cars, houses and other big ticket items. This increase in demand raises rates and this rise is healthy. Returning to our thermometer analogy, this would be like a rise from 96 to 98 degrees. Sometimes, however, the economy grows so fast that shortages of workers and supplies start to materialize, resulting in inflation. If allowed to fester, inflation can spin out of control. That is why interest rates continually rose during the 1960s and 1970s. Eventually, things got so bad the Federal Reserve raised rates to 20% to weaken the economy and squeeze inflation out of the system. This would be equivalent to a rise in body temperature from 103 to 105 degrees. This rise was necessary but was a sign of a profoundly sick economy. Until recently, despite amazingly low interest rates, no one borrowed; witness the ridiculously low levels of new home construction and investment in plant and equipment by firms, because everyone was pessimistic about the future. This would be akin to fall in temperature from 95 to 93, a bad sign. However as the economy improves, and trust me it is, albeit way too slowly, and as we become increasingly optimistic about the future, interest rates will rise and this is what is finally starting to happen. The thermometer is now in the process of going from 94 to 95. In this early phase of the recovery, firms hire workers, begin buying equipment and start building plant. As a result, unemployment rates decline, wages start rising and household spending increases. And this boosts GDP growth, which results in yet more corporate spending and more household consumption on, among other things, housing. Given the immense slack in our economy this process could last several years, accompanied by slowly rising interest rates akin to the thermometer rising from 96 to 98.6! Elliot Eisenberg, Ph.D. is President of GraphsandLaughs, LLC and can be reached at Elliot@graphsandlaughs.net. His daily 70 word economics and policy blog can be seen at www.econ70. com.
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Over 20 Years Cedar Bay Homes (24) McCormick Land Co. Inc. (24)
Over 15 Years Eagle Homes Inc. (18) Four Aces Drywall Inc. (17) Randy Biegenwald CPA PS
Over 10 Years Accurate Builders (14) Markay Cabinets Inc. Morrison Gravel Inc. Advanced Door Service Inc. InEx Finish LLC Pickett Property Management Winslow Masonry
May is National Home Remodeling Month
Over 5 Years The Roof Doctor (8) JB Concrete Construction Peninsula Credit Union
5 Years DG Builders Inc.
1 Year Commercial Fence Corp. Kitsap Bank/Mortgage Division
In addition to being the ICC’s National Building Safety month, May is also an important month to consider hiring only professional remodelers. Many of you have a project you want to get done around your home. Maybe Joe, that comes by for dinner a couple nights a week, and plays in your monthly poker game, is handy and has offered to do the work for cheap. Don’t do it. For most of us, our home is our most valuable asset. It is also where we sleep at night, store our belongings, and raise our families. Not only is this ďŹ nancially valuable it is extremely important. You wouldn’t have your neighbor that is a good seamstress stitch up the gash on your eye, so why would you allow someone to work on your home without bringing with them the necessary contractor’s registration, insurance, and bond? Would your homeowners insurance cover damage caused by an unregistered contractor you paid under the table? Will they cover his medical bills when he falls through your ceiling or trips over his power cord? Even if they would, do you want those claims on your insurance? If you are considering having work done on your home, ďŹ nd your contractor on the Home Builders Association of Kitsap County’s website (www.kitsaphba.com) or in our new publication, Build & Remodel on the Kitsap Peninsula. We have a special group of members that participate in our Kitsap HBA Remodelers Council and we are happy to give you a list of those members to help you narrow down your search for a professional remodeler for your home. Always verify with the Department of Labor & Industries the status of any contractor you are considering hiring BEFORE you sign any agreement. You can easily look a contractor up at www.lni. wa.gov. If they aren’t there, then they aren’t registered. Mark your calendar for our Peninsula Home & Remodel Expo! This annual event is held at the Kitsap County Fairgrounds October 3 – 5.
Government Affairs Committee Meeting 2014 Schedule Last Thursday of each month 2:30 – 3:30pm at the HBA OfďŹ ce in Bremerton s 0ERIODICALLY EXTRA MEETINGS ARE ADDED OR THE STANDARD MEETING IS EXTENDED OR MOVED 0LEASE WATCH THE ("! ONLINE CALENDAR FOR THE LATEST INFO OR YOUR MONTHLY EVENTS POSTCARD.
HBA Golf Classic! Mark Your Calendars! The annual HBA golf tournament is set to go for Friday, July 11. This is a FUNdraiser for the HBA and is heavy on the fun. We hold this tournament at Rolling Hills Golf Course and we encourage all our golfers to take full advantage of the theme, side games and distractions provided by hole-sponsors, and our wonderful buffet dinner at the end of the day! We are looking for member companies to raise a hand to participate on the event committee. Maximize your membership by networking through your role on this committee. The Chair of this important event is Shawnee Spencer, First Federal Bank and we will be beginning committee meetings this month! Please call Katie at the HBA and join the committee! Golfers! Remember: the EARLY BIRDIE GETS THE LOWER PLAYER FEES! Don’t delay sign up your team today! Call the HBA for the details at 360479-5778 and watch for the online registrations at www.kitsaphba.com.
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MAY 2014 | 23
REGIONAL ECONOMY | JOHN POWERS
Olympic College — Keystone of Kitsap’s economic development balance sheet When it comes to economic development, Kitsap operates from a sound balance sheet. Kitsap’s economy is comprised of many valuable assets: • Exceptional natural environment and quality of life; • Committed community leadership, both public and private sector; • Progressive pro-business public policy; • Sound and reliable infrastructure; • Proximity to the I-5 commercial/industrial corridor and global Seattle market • Presence of multiple industry clusters – economic sectors; • Above-average educational attainment and development of intellectual property; • Prosperous median household incomes; • Competitive costs of living and doing business; • Excellent health care providers; • Top-flight professional and business services; • Highly skilled workforce;
• Strong public education system serving the needs of local business led by Olympic College. While Kitsap’s economic development balance sheet is diverse, strong, balanced and growing, there is one particular institutional asset that truly anchors our economic engine and future. That asset is Olympic College and its myriad of post-secondary education and job training programs. In the final analysis, the most essential capital in business is human capital — an educated, skilled and adaptable knowledge-based workforce; and, it is in this critical human capital development area that Olympic College truly shines. Established in 1946, Olympic College serves the higher education needs of Kitsap and Mason counties from three campus locations – Bremerton, Shelton and Poulsbo. OC today serves over 12,000 full- and parttime students in a wide array of educational coursework, credentialed skills training and certificate programs. Over six decades, Olympic College has grown and evolved from primarily a two-
KITSAP PTAC | MARY JO JUAREZ
Selling to the government – What is a ‘Sources sought?’ Government agencies frequently advertise for “Sources sought� – what does that mean? Should you bother responding to a sources sought when it doesn’t result in a contract? Isn’t this just a waste of government time and money? What is the government doing? “Sources sought� is the government’s market research tool to determine if there are any small businesses that can perform the statement of work. If the government receives two or more responses that meet the criteria outlined, the project can be set aside for small businesses or categories of small businesses including Woman Owned
Small Business, Service Disabled Veteran Owned Small Business, 8(a) Small Business, and Hubzone Small Business. This means your competition will be limited to firms in the same small business categories. If the government agency does not receive any responses of interest to the sources sought, the project will most likely be open to both large and small businesses. This greatly increases the pool of competition. For example, if your company is a Woman Owned Small Business and you respond to a sources sought, this might allow the con-
year “community college� conferring associate degrees and certificates in a variety of disciplines, to a more comprehensive postsecondary institution that today confers (directly, or in concert with such partners as WSU and WWU) bachelor’s degrees in more than half a dozen disciplines including: mechanical engineering, environmental science, nursing, and business administration. And beginning this fall OC will offer a four-year degree in computer information systems. Olympic College has set the course for local human capital development and, in large rough numbers, has advanced the educational, career and economic opportunities of literally hundreds of thousands of West Sound employee citizens for three generations. It is safe to say that OC has served as the cornerstone of building Kitsap’s economy from the time veterans returned from WWII and began to pursue their hopes and dreams here in Kitsap County. Perhaps nowhere in our community is Olympic College’s impact more pronounced than in its partnership with the Puget Sound Naval Shipyard and Intermediate Maintenance Facility. For over 50 years OC has administered the educational element of the finest shipyard apprenticeship program in the Navy. The vast majority of PSNS-IMF’s apprentices, tens of thousands through the years, have been trained via
Olympic College programs. Time and time again, these employee education and training programs have received exemplary reviews for the value delivered to the employer. And these programs have made a special impact on delivering value to our veterans. When over 40 percent of our local economy, and nearly one-third of our local workforce, is directly benefited by one local institution – Olympic College – it’s not difficult to see that OC is the No. 1 asset on Kitsap’s economic development balance sheet. Olympic College’s motto is: “Cogita, Aspira, Aude, Perade� (Think, Aspire, Dare, Achieve.) Dare I say, OC has, with great thought, dedication and inspiration, helped thousands of Kitsapians aspire to and achieve great things! I invite you to join me in recognizing Olympic College’s omnipresent contributions to our local community and economy, and in thanking OC’s present leadership — President David Mitchell and trustees Beverly Cheney, Jim Page, Darlene Peters, Alice Tawresey and board chair Stephen Warner — for all they do for so many in our community by advancing OC’s critical mission in developing our economy. Here’s to OC – On Kitsap!
tracting officer to set the project aside for Woman Owned Small Business companies. Your pool of competition could change from 20 firms of all categories and sizes to five Woman Owned Small Business firms within a specified size standard. Since the first of the year I’ve attended numerous industry and agency outreach events and heard the same plea over and over again from the agencies. Whether the agency representative is speaking on a panel or the main speaker, they are all asking – begging – small business firms to take the time to respond to “Sources sought.� The agencies have all expressed concern about the number of government projects which are going to “full and open� status meaning that both small and large firms can propose on them. Agencies also talk about small business firms that are frustrated because they cannot find contracts that they can respond to without competing against large
firms. While the time and effort required writing a response does not immediately result in a contract, it is well worth your while, as this is the one time that you, as a small business firm, can make a difference in determining and limiting your competition and sway who is eligible to respond to the request for proposal. Federal regulations tie the hands of the agencies based on the documented results of their market research. In talking with a Small Business Specialist last week, I asked, “If a small business has the opportunity to meet with you or respond to a sources sought, which is most important to the future of that firm?� The answer was, “Respond to the Sources Sought! They can always reschedule with me, but the window of opportunity for that project to be set aside will be gone.� It’s your responsibility. Please
• John Powers is the executive director of the Kitsap Economic Development Alliance.
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TECHNOLOGY | CHARLES KEATING
After Heartbleed, what’s next? I expect readers have already heard about Heartbleed, which compromised websites and appears to have existed for at least two years. Unlike specific site hacks, this affected a substantial portion of the Internet. No one knows to what extent it was exploited, but safe to assume it was, and like water finding the lowest spot, eventually those with nefarious purposes will get their hands on the data. The call has been out there for everyone to change their passwords and use strong, unique ones — all great advice — but have we done so? For many the answer is no, or not yet. If we change passwords on a regular basis, eventual-
ly the blizzard of those we manage conflicts with our human nature and the best advice falls on deaf ears. After all, who wants to manage reams of unique, complicated passwords? We all need something easier, just not too easy. One option for creating strong passwords is to use bits you know (addresses, parts of phone numbers), then combine them with characters, letters and special symbols. While a pattern strategy is not perfect, it is a compromise from long pass phrases or random strings that is more manage-
able for most users. A Secret Service presentation at the recent IT Summit confirmed that 80 percent of penetrations use easy targets such as simple or default passwords or unpatched security holes. Social networks are sources of data. Even if we are not concerned with the NSA reading our email, hackers are financially motivated, have their own professional networks, share tools and are persistent threats that target small and medium-size businesses that may be less secure. Any financial, medical, email or cloud services warrant special attention, as do any systems allowing remote connections. What about password apps or
managers? These make life easier, store your passwords encrypted, and unlock only with a master password. Some require two factor authentications. A concern with apps, especially those with cloud storage of passwords is that if the app is compromised, hackers can “get it all,” so the best measures still involve compartmentalization. A county CIO recommended the password apps up to a point. Using an encrypted spreadsheet to maintain passwords offline is their recommended strategy. Giving it a boring name and hiding amongst other files is even better. With the cloud storage and expanding digital record trails, paying attention to what we keep, where we store and how we access it is just as important as good passwords — if not more so. Online files should be mirrored with offline backups. Compartmental-
ization of storage and files, where one single log-in cannot access all files, helps protect against both ransomware and accidental deletions. Heartbleed is not only a reminder of the need for better security, but also how important online services have become. We all need to become more educated users and act on our knowledge with good practice, not unlike wearing a helmet when biking. • 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).
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call Kathy Cocus at the Kitsap Economic Development Alliance PTAC (Procurement Technical Assistance Center) if you have any questions or need assistance in preparing your response to a future sources sought. Your Kitsap PTAC offers free high-quality training opportunities and confidential business assistance and support to regional businesses in marketing and selling to federal, state and local government agencies and prime contractors. Be sure to take advantage of these great training opportunities: May 20, 3-5 p.m. — State M/WBE Certification Workshop (Woman & Minority Owned Businesses); May 28, 9-11 a.m. — Accounting for Subcontractors (this is part 1 of a three-part series); June 24, 4-6 p.m. — Prime Outreach: Being a Subcontractor (this is part 1 of a three-part series); and June 25, 9-11 a.m. — Social Media for Government Contracting: Expanding Your Marketing.
LOCALLY PRODUCED LED BULBS BRIGHTEN UWT CAMPUS The University of WashingtonTacoma is installing replacement LED bulbs from Differential Global Energy (DEG) in Port Orchard in all the heritage light fixtures on the campus. Hugh Smith, UW-Tacoma energy analyst, said DEG took one of the outdoor fixtures to its factory and refitted it so the school would not lose the UL listing for the fixtures. “By doing this we are also able to retain our existing fixtures at a considerable savings,” Smith said. The high-tech replacement bulbs developed by the Port Orchard firm are adaptable to most existing highintensity light fixtures — such as streetlamps and other industrial applications — allowing an upgrade to LED lighting without replacing the fixtures. The photo at left (along Court C near 19th Street on campus) shows the difference the new LED lamps make on light levels and color. Smith said a security enhancement with the LED lamps is the ability to discern colors such as blue and red from black at night.
• Mary Jo Juarez is a PTAC counselor with the Kitsap Economic Development Alliance.
New Smart Cities resource provides technology financing options BUSINESS WIRE
WASHINGTON — The Smart Cities Council, an industry coalition to improve the livability, workability and sustainability of the world’s cities, has released a new resource to help cities understand the financing options available for technology projects. The Smart Cities Financing Guide outlines
28 of the most promising financial tools for urban infrastructure enhancements, including some techniques that do not require any upfront money from the city. Smart Cities is a growing global movement to incorporate technology into infrastructure – such as water, power and transportation systems – to improve efficiency and enhance prosperity.
“The problem is rarely the technology, which has been proven in thousands of projects around the world,” said Smart Cities Council chairman Jesse Berst. “So often, the biggest barrier is how to pay for it. Happily, more than two dozen creative techniques have emerged in recent years. Arizona State University was the perfect partner to develop this guide, giv-
en their international reputation for insight into municipal governments and finance.” The guide offers criteria for evaluating financing options and allows city leaders to differentiate which approach is best for their project and community. It also provides case studies outlining successful application of the tools. The guide was produced in partnership with Arizona State University with input from the
Smart Cities Council’s financing committee. ASU is one of six dozen universities, national laboratories, standards bodies, climate advocacy groups and development banks that make up the council’s Advisory Board. The Financing Guide is part of the Smart City Council’s resource library. For more information, visit www.smartcitiescouncil.com or view a brief introductory video about the Smart Cities Council.
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BUSINESS OPENINGS Crêpes restaurant in Kingston expands to Bainbridge location
New mercantile store adds Sunday flea market in Bremerton
J’aime Les Crêpes has been a frequent food vendor at Bainbridge Island events for years, and no the Kingston crêperie is opening a permanent location in the downtown district on Bainbridge. Owner Paul Heather said he’s been looking for a site to expand for a few years, but had not found the right location until recently. The new J’aime Les Crêpes will is at 143 Madrone Lane, just off Winslow Way in the same building as Mora Iced Creamery. Heather’s crêpes café next to the Kingston ferry terminal will mark PHOTO COURTESY PAUL HEATHER its 11th anniversary in May. J’aime Les Crêpes is expanding, adding a second location on Bainbridge “Bainbridge Island was our cho- Island in the same building as Mora Iced Creamery on Madrone Lane, sen market to expand,” he said in just off Winslow Way. The original J’aime Les Crêpes opened 10 years ago an email to the Kitsap Peninsu- in Kingston. la Business Journal. “Many of our customers make the drive from Heather, who learned the art of making crêpes Bainbridge to Kingston to our crêperie. Also for the when he lived in France, said the new Bainbridge site last 10 years we have provided crêpes under a mobile is “the perfect location for us.” operation for most of the events happening on BainIt was set to open May 3, and hours will be 9 a.m. bridge from Bloedel, Chamber of Commerce, Harvest to 9 p.m. Fair and many others.”
The former auto dealership building at 816 Pacific Ave. in Bremerton is now home to Uptown Mercantile & Marketplace. Owner Amber Breske opened her store in the 3,000-square-foot former showroom space in December, and the back area that was the vehicle service bay has been turned into the site for a community flea market. The Sunday market has drawn good crowds since it opened last month. “When I walked back there, it was the first thing I thought of,” said Breske, who was previously involved with the popular Fremont Sunday Market in Seattle. “There’s nothing like it in Kitsap.” More than 30 vendors signed up to sell a wide range of crafts, collectibles and food. There also will be live entertainment each week,
Soapmaker moves home-based business into Bremerton storefront To keep up with growing demand as more people discover her F.R.O.G. Soap products, Laura Kneib has moved her home-based enterprise into a more visible retail space on Fifth Street in Bremerton. Kneib has already connected with her new downtown neighbors; one of her newest handmade creations is a coffee-and-cream soap infused with espresso and espresso beans from Cornerstone Coffee. The bars, which also contain vanilla essential oil and almond biscotti, look somewhat like a whipped cream-topped mocha, and others are in cupcake form and look good enough to eat.
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Soaps that look like cupcakes are among the newest offerings from F.R.O.G. Soap, which is now operating a small retail shop in downtown Bremerton.
“Angela at the coffee shop asked if I could make a coffee soap for her to sell,” Kneib said. “She’s going to put her label on it and it will say made by F.R.O.G.” Kneib is also providing some soaps at a discount for the recently opened thrift store operated by Hospice of Kitsap County at 301 Pacific Ave. The most significant recent development for her business is a contract to supply several varieties of F.R.O.G. Soap for the six Made in Washington stores around the state. Kneib said the company wanted the soap in their stores before Mother’s Day. Her business of environmentally friendly soap production using recycled cooking oil got a lot of media coverage after F.R.O.G. (From Recycled Oil and Glycerin) Soap was featured in a Kitsap Peninsula Business Journal cover story in December. Even before that, she was extremely busy filling online orders and selling at holiday gift fairs during the Christmas season, and her operation outgrew her home setup. She relocated to a small, unmarked storefront on Fifth Street that is actually part of the Admiral Theatre building, and it was used for storage before the soapmaker became a tenant. “It’s another phase,” Kneib said of raising her business profile with a retail shop. “We’re not just online or at the farmers market now.” The location is temporary, because she plans to move to a larger space — just a few doors down in the same block — when the Admiral Theatre buys and remodels a vacant 1,500-square-foot building later this year. For now, Kneib sets up her small sandwich-board sign on the sidewalk to let passers-by know what’s inside the nondescript site. Racks of her artistic soap bars are visible in the windows, and there’s another attraction as well. “The smell brings ’em in,” Kneib said, “especially when the door’s open.”
and Breske plans to keep the Sunday market going all year. It’s not the first local venture for Breske, who first operated her Flea Market Chics shop in a space near Evergreen Rotary Park, before opening Manette Mercantile early last year. After her lease wasn’t renewed in Manette, she decided to take a chance on the old dealership on Pacific, most recently home to Pied Piper’s Emporium. “I always loved this building,” Breske said in an article in the Kitsap Sun. “It was empty for a long time, it needed a lot of work.” Her store offers goods from local vendors, vintage wares, repurposed furniture and consignment items. Like other business owners along the street, Breske weathered street closures during the Pacific Avenue reconstruction project. “It was worth the construction,” Breske said. “Now that it’s coming to an end, I think it will be a great location.”
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The Uptown Mercantile & Marketplace at 816 Pacific Ave. in downtown Bremerton is also the site of a community flea market that started in April and is open on Sundays.
Recycling firm adds composting operation as Olympic Organics Jeff West, co-founder and president of New Day Recycling and the newly opened Olympic Organics, is re-introducing composting service to Kitsap County. This was the main focus of Emu Composting Topsoil, a company that went bankrupt in February 2013 but was purchased by West to help bring his latest business venture to life.
“Our family has been in Kitsap County for over 40 years, and we’re excited that we’ve been able to fill the hole it left in the community when EMU closed,” West said in a news release. West, a board member of the Washington State Recycling Association and the Kitsap County Solid Waste Advisory Committee, said the addition of Olympic Organics will better enable New Day Recycling as well as others to provide services for the collection of organics, something West wants to emphasize with his new SEE COMPOSTING |27
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Navy Federal Credit Union relocating its Bremerton branch to downtown building
BUSINESS OPENINGS Port Gamble S’Klallam set up community market in Kingston
vendors, it has room for 21, and is hoping to increase its vendor variety. The market is seeking more vendor applications, especially from people who want The Port Gamble S’Klallam to sell plants, fruits or vegeTribe held the Ravenwood Martables. The market also is ofket’s grand opening on April 25. fering introductory pricing to The seasonal outdoor market vendors, including a season will be open every other Friday pass discount. Interested venthrough the summer, except for dors who would like to reserve July 4, from 10 a.m. to 6 p.m. at space or get more information 7950 Little Boston Road NE in should call 360-297-7410. Kingston. Plans for the market began The market is in an open field RACHEL ANNE SEYMOUR / KITSAP SUN behind the Gliding Eagle MarAnn Kilby, left, and Lisa Eastep look through last October, and since then ketplace, a tribal-owned busi- plants at the Tom’s Greener Garden booth at the the tribe has allocated $20,000 ness, at the corner of Hansville grand opening of the Ravenwood Market on April for the project to assist with Road and Little Boston Road. 25. The market is organized by the Port Gamble start-up costs and maintenance throughout the season, Tom Mitchell, owner of S’Klallam tribe. including bringing utilities to Greener Gardens, was one of the site, according to Dawn the vendors “testing the waPurser with the tribe’s Development Authority. ters” at the new market, along with a handful of others, She said the idea is to create a place to support buywho were selling jewelry and food. ing local, while providing tribal members a market to sell While the market — organized by the Port Gamble their products alongside other businesses. S’Klallam’s Development Authority — kicked off with six
Vintage store in Allyn offers repurposed pieces with fresh, quirky touches Deb McRae and her partner, Vena Roberts, are owners of the new Vintage Dragonfly home décor store in Allyn. The two retired Navy veterans buy vintage furniture and give it new life with fresh, quirky touches — pink handles on a re-painted dresser or new wallpaper to accent an old china cabinet. Roberts enjoys painting furniture pieces and regularly gives her input on the design of an item, but McRae usually takes the helm and has a vision for the look of the piece. Vintage Dragonfly will also custom design pieces. The store is at 211 E. North Bay Drive. For more information, call 552-2568 or visit their Facebook page.
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company. Olympic Organics is a composting and topsoil company for people who want organic compost from materials such as grass, brush, manure, wood wastes, etc. “We want to continue to offer what Emu Composting did, but with our own spin,” West said. Once these materials are brought in, Olympic Organics composts them and resells the compost. The composting pushes air into the materials with a set of computer-controlled fans in a prescribed process of mixing and screening the materials. Olympic Organics is working with Bainbridge Island-based Green Jeff West, owner of Olympic Organics in Kingston, checks the finished compost produced at the facility. LARRY STEAGALL / KITSAP SUN
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Vintage Dragonfly offers restored furniture.
Mountain Technologies in order to make this time-reducing process possible. Green Mountain provides innovative commercial-duty composting solutions for a wide variety of clients, including education and institutional customers composting their own food waste. These are the type of customers Olympic Organics will serve. Olympic Organics is the only place in Kitsap County that offers both residential and commercial composting services. In 2012 alone, more than 36 million tons of food waste was generated nationally, with only 5 percent diverted from landfills and incinerators for composting. West said that by taking over Emu Composting & Topsoil, Olympic Organics will make a difference to the community. “We can’t force people to compost,” he said, “but we can provide a place for people to do so if they choose.” For more information, visit olympic-organics.netor call 360-6380117.
Navy Federal Credit Union is moving its Bremerton branch from Auto Center Way to a high-profile downtown building that has struggled to find tenants. The Virginia-based credit union, which also has a banking center off Randall Way in Silverdale, has signed a lease for 4,000 square feet on the first floor of 555 Pacific. That site at the corner of Sixth Street and Pacific Avenue is colloquially known as the Tim Ryan Building, after the Poulsbo developer who constructed it. The nearly $9 million building — with a rounded corner, spacious foyer and street lamps — did not fill up with tenants as quickly as Ryan had hoped. The property did manage to sign on Group Health to its second floor and Edward Jones on its first, as well as a small cleantech firm called Distributed Energy Management on its fourth. But all its floors still have vacancies.
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COMMENTARY | DON BRUNELL
The Princess and the Pea Let’s face it. We’re spoiled. Even in our tough economy, most Americans enjoy myriad conveniences we take for granted. We awake to a warm house, turn night into day with the flip of a light switch, jump into a hot shower, get dressed and grab a cup of fresh brewed coffee before heading to work in our car or on the bus. On the way home, we stop at the grocery store to pick up a few items from the 40,000 choices offered there. What do all these things have in common? They are made possible by fossil fuels. But we have become so accustomed to these creature comforts that we no longer associate them with fossil fuels. Like the fairytale “Princess and the Pea,” we have the luxury of being discomforted by the smallest things. In that story, the heroine’s royal pedigree is secretly tested by hiding a pea under 20 mattresses and 20 feather beds. She is proven to be of royal blood when she emerges the next morning after a
sleepless night, complaining about the uncomfortable bed. That’s us. We have become the Princess and the Pea. We grimace at the mere thought of “dirty” fossil fuels and embrace the idea of “clean” energy. Oil, coal, diesel fuel and even natural gas? Ick. But consider: The paper you’re reading was produced and transported using fossil fuel. Same goes for the clothes you’re wearing and the chair you’re sitting in, your food, your car, your house and your workplace. Look around you. So, when government officials or the Sierra Club talk about eliminating fossil fuel, we should understand what that means. According to the U.S. Energy Information Administration, more than 90 percent of the energy we use comes from fossil fuels and nuclear power (another ener-
gy source the Sierra Club wants to eliminate — and they’re not crazy about hydropower either, which produces most of our electricity in Washington.) If we eliminate those energy sources, how will the Princess and the Pea fare without all her creature comforts? How will we? During power outages, newscasts are filled with images of miserable families huddled in cold, dark houses. We think it’s terrible to live that way for a few days. Are we willing to live that way permanently? It would be nice if solar and wind power could fill the gap but they can’t – and never will. People who live a subsistence lifestyle have a very different view of fossil fuels. The National Geographic series “Life Below Zero” follows several people who live near the Arctic Circle in Alaska. Some are 100 miles from the nearest town; no roads, no convenience stores, no Home Depot. They haul water from a stream and heat with wood; they fish, trap and hunt for food. But even so, their lives depend on fossil fuel.
They cook with wood — sometimes propane — and use gas to run their snowmobiles and the generators that power their lights and emergency radios. Up there, the daily train with its diesel engine isn’t a nuisance; it’s a lifeline — the only way to get fuel, supplies and medicine, the only way to get to a doctor. My point is this: Because we have so much, we think little about it. Because we don’t realize how much we depend on fossil fuel, we imagine we can do without it. Before we embrace public policies and campaigns that will eliminate 90 percent of our energy, perhaps we should spend a week living “Life Below Zero” to see how we like it. Hopefully, then we can focus on how to apply our knowledge and technology to use fossil fuels more cleanly and efficiently. • Don C. 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.
PEOPLE IN BUSINESS Kitsap Bank promotes loan officer, announces retirement of senior executive Kitsap Bank has announced the promotion of Cindy McKim to Vice President and Loan Review Manager. McKim has over 24 years of banking experience and joined Kitsap Bank in 2006 as a commercial loan specialist. Cindy McKim She was most recently promoted to Vice President, Loan Review in 2011. She has a degree in accounting from the University of Washington’s Foster School of Business.
The Port Orchard-based bank also announced that John Woods, Senior Vice President/Loan Review, has retired from his position John Woods effective March 28. Woods joined Kitsap Bank over 10 years ago, and has been in banking for more than 40 years, as both a line lender and credit administrator. “John has been a valuable asset to the Kitsap Bank team and to our loan review process,” CEO Steve Politakis said. “We wish him a very happy and healthy retirement.” Woods, a University Place resident, is also an accomplished
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dishes to mopping the bathroom floor. Over the years, Baldwin worked with city leaders to promote Port Orchard, former Mayor Lary Coppola said. “He was always the first person I called because A, he was always willing to be part of it, and B, he had constructive suggestions,” Coppola said. “It was always about what’s best for the city and what was best for the community.” Baldwin had a gift for drawing diverse parties to the table, those who knew him said. He defused conflict with a quiet but
photographer whose work can be found on various Kitsap Bank materials.
City Clerk in Gig Harbor receives state award Gig Harbor City Clerk Molly Towslee received the President’s Award of Distinction award from the Washington Municipal Clerks Association at the group’s recent annual conference in Pasco. During the presentation, Towslee was recognized for her exceptional devotion to public service, her continuing contributions to WMCA, and her dedication to the City of Gig Harbor. City Manager Dennis Richards nominated Towslee and noted, among other accomplishments, that her leader-
authoritative appeal to common sense and the common good. “Darryl was a man who brought us together,” Ashby said. “He was trying to get the community to heal from some perceived fracturing that had been done years ago. He worked on that continually. ... I would hope we would all honor him and respect his effort and continue his effort.” Baldwin in March put the business and property up for sale for $1.05 million. With his passing, his girlfriend Sheila Cline and Jones will assume ownership of MoonDogs, according to a plan Baldwin discussed when the property was listed.
ship abilities have provided much needed common sense and knowledge in finding solutions to solving difficult problems. In her role as City Clerk, she has been the point of contact for training the HR Analyst, brought back the Wellness Program to the city, and serves, additionally, as Risk Manager. Towslee also serves on the Insurance Pool Board and as chair of the Civil Service Board. As a 22-year employee and resident of Gig Harbor, Molly is also active in many civic events. The President’s Award of Distinction is open for nominations among more than 300 clerks in the state of Washington.
“His family is thankful that Sheila Cline and her daughters Kiera and Kinsey were part of the last chapter of Darryl’s life,” said his younger siblings Kerry Baldwin, Sandy Trautmann and Susan White, in a submitted obituary. “Not only did they ease his fight with cancer, they were part of his dream team, along with his staff at MoonDogs Too.” The Port Orchard Chamber of Commerce named MoonDogs Small Business of the Year for 2013. Baldwin was the chamber’s Man of the Year in 2009. And Mayor Tim Matthes nominated him for the city’s 1,000 Points of Light Award.
Inslee signs order to tackle carbon pollution By The Associated Press Gov. Jay Inslee signed an executive order April 29 aimed at reducing carbon pollution, including directing a task force to recommend how to cap greenhouse gas emissions in the state. The governor, who had made tackling climate change a key issue, also directed state agencies to work with utilities to transition away from coal-powered electricity and to evaluate requiring the use of cleaner transportation fuels. Inslee’s executive action comes months after a bipartisan panel of legislators deadlocked on strategies to reduce the state’s greenhouse gas emissions. That panel split along party lines. “This is the right time to act,” Inslee said, adding that it is required by law. At one point, the governor read from a statute that requires the state to return to 1990 greenhouse gas emissions levels by 2020, and for greater reductions beyond that. Some Republicans had questioned whether those limits are binding or whether they needed to be revised. A key part of Inslee’s plan sets up a carbon emissions-reduction task force that includes labor and community groups as well as businesses such as Alaska Air Group and Puget Sound Energy. The group is expected to come up with recommendations for a market-based program to limit global warming pollution. Inslee’s order says the program must set a cap on carbon emissions and consider measures to offset costs to consumers and help businesses. Recommendations are due in November, and they would shape legislation Inslee requests in the 2015 legislative session. Many of the major elements will require legislative approval or legislative funding.
In January, community members gathered with Baldwin to celebrate his contributions, packing Amy’s on the Bay, another downtown eatery, to capacity and beyond. “I know dozens and dozens of people who weren’t able to make it for that event,” Amy Igloi Creed said. “He was an inspiration to people he never even met. He has no idea what his impact on the community was and will continue to be.” Baldwin has three daughters Samantha Kime of Colorado, Melissa Johnson and Hanna Baldwin both of California. His grandson Logan David Kime was born last May.
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Developer remains optimistic about Bremerton By Josh Farley The Kitsap Sun
drum. And that’s the way we’re looking at it.
On the day he watched 32,000-pound concrete tiles peeled off the Harborside Parking Garage that he owns, Ron Sher recently took time for a few questions from this reporter. The Seattle developer, who’s turned failing malls into vibrant community centers, stopped by Bremerton to plan the facade that will replace the tiles on the garage, still known by many as the JC Penney’s building. We sat down at the Bremerton Bar & Grill (a restaurant he built and owns) for a few questions. What’s his next move, you ask? Here’s what he told me. *** KS: To start, let’s go back to 2007. Why did you invest in Bremerton in the first place? Sher: Bremerton has got a great infrastructure and it’s got a great location, and a great history. It’s got the economic base of the shipyard and, at that time, I had a relationship with Cary Bozeman. He talked me into it. I spent most of my career trying to improve and create activity and vitality in communities on a smaller scale and I said, ‘wow, here’s a chance to do it for a city.’” Everything seemed right and everything was growing, I got enthusiastic, and here I am.”
KS: Has the city of Bremerton been good to work with? Sher: The city’s always been good to work with. They were great with (former mayor) Cary (Bozeman) and (current mayor) Patty (Lent) has been great. The city has not been the problem. The fast ferry would be huge. What’s happening on the Seattle waterfront, right now, is a problem, but when it’s completed it will be a huge plus. Bremerton will happen. We know that — we all know that. We all keep waiting. And I think we’re tired of waiting.
KS: Things didn’t pan out the way we thought, in terms of the economy. How did your plans change? Sher: Yeah, everything sort of dried up but we didn’t want to give up. I was working a lot with (former Bremerton economic development manager) Gary Sexton and I wanted to do something with this corner for the sake of Bremer-
LARRY STEAGALL / KITSAP SUN
A crew from Tim Ryan Construction removes concrete facade panels at the Harborside Parking Garage in downtown Bremerton on April 8. ton (where the Bremerton Bar & Grill is). I felt that I hadn’t done what I wanted with the Penney’s building, and I still haven’t, and I wanted to make a serious difference and I felt we could do that if we took this corner, this old bank building and put something vital that makes a statement about Bremerton. We did that, and I’m pleased with it. But I haven’t given up on the other (Penney’s) project. Its time just hasn’t seemed to have arrived. KS: You’re not in the residential development business, but you’ve said apartments could go on top on the JC Penney’s building. Who could do that kind of work, if not you? Sher: I’ve never done any residential development. And I’ve always felt I needed a good residential partner and for years I tried really hard to find one. I wanted somebody who would do a great job and do something we could be really proud of. I put out the word but it hasn’t shown up. We still have a long-term goal of creating a lot of vitality here, but it’s always been a bit of a chicken-and-
egg issue. You can’t get the retail because you don’t have the residential and you can’t get the residential because you don’t have the vitality of the retail. And one of the things I love about our project is you can come up with enough residential to support the retail on a smaller scale and you can get away from that chicken-and-the-egg conun-
KS: What will it take for Bremerton to ‘happen?’ What’s that last roadblock, or last few roadblocks? Sher: We have to find a good residential developer who has the right ethic, financial capacity and the enthusiasm to make the investment in Bremer-
COMMERCIAL Bremerton CBA 529362 Excellent new, high quality concrete tiltup bldg in high traffic + visibility corner location w/immediate freeway access. 4 spaces avail & sizes range from 1500– 5772 sq.ft. Office, retail or industrial. $13.00/SF NNN. Mark Danielsen 360-509-1299. Poulsbo CBA501452 Retail bldg in highly visible location by State Hwy 305. Owner remodeling former auto service bldg into retail use. Space range 1,000 SF-7,200 SF. $15.00/SF/YR NNN. Mark Danielsen 360-509-1299. Kingston CBA218220 Built out office space in a retail center.
Kitsap County seeks road project ideas
ton. And I would be happy to partner with that person. But on my own, I’m not going to be able to do it by myself. KS: When you purchased the Penney’s building, the concept was a mixeduse development — bookstore, health facility, apartments and more. Is that still the game plan, or has it changed? Sher: I think that the game plan might change. We have to have a really good economic plan for it to work, and it seems that looking at the neighborhood and everything around it, that it might be best to revitalize all the retail around the building, rather than take out valuable parking, when there’s already so much retail available. Use this parking to support that retail and the apartments. But if we get this done, it will be a collaboration between myself and the apartment builder. We’ll have to feel it out.
Great visibility to Hwy 104. Former Real Estate office. Joe Michelsen 360-509-4009. Bremerton NWMLS #599790 $190,000 Long-time, successful social club/bar with pool tables, patio and plenty of parking. Provided a comfortable income for 30+ years for the founder/owner now retiring. Building also available for additional cost. Bob Guardino 360-710-7844. Bremerton NWMLS #607387 $205,000 Long-time, successful social club/diner/ nightclub in Bremerton. Business also for sale for additional cost. Bob Guardino 360-710-7844. Poulsbo CBA525540 $612,000 7600 sq.ft. warehouse for sale. Seller will
Kitsap County is seeking road project ideas and suggestions to be included in the six-year Transportation Improvement Program (TIP). Each year the county Public Works completes a transportation project selection process. This year’s process determines which new roadway projects are selected for the 2015–20 TIP. Projects are scored and ranked using objective criteria, including safety and/ or capacity needs, structural condition, environmental retrofits, and non-motorized needs. Projects are selected based on the availability and timing of funding. Suggestions for this year’s TIP update will be accepted through May 16. Submissions may be made online at http://www.kitsapgov.com/ pw/Tip_Project_Proposal_ form.asp. Complete information about the process and descriptions of the type of projects considered is available at www.kitsapgov.com/ pw/sixyear_tip.htm.
lease back 1/2 and there is a long term tenant in 1/4 of the building leaving 1800 sq.ft. to lease or use by new owner. Joe Michelsen 360-509-4009. Bremerton CBA512042 $850,000 Multi use building on Pacific Ave in downtown Bremerton. 3 commercial suites and 11 residential units and the adjoining 53 space parcel parking lot. Solid cash flow investment. Victor Targett 360-731-5550.
LAND/LOTS Bremerton CBA523871 $615,000 This lot is next to the new Winco Foods and enjoys great exposure to State Hwy 3. Zoned Village Commercial allows many retail and office uses. Lot size is 1.57 acre. Victor Targett 360-731-5550.
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SPECIAL EVENTS Annual beer festival on tap in Gig Harbor The third annual Gig Harbor Beer Festival will be held Saturday, May 10. The Gig Harbor Uptown Pavilion will once again host this popular event and 21 craft brewers from around the Northwest will be there providing sample pours from 12 noon to 6 p.m. “There are several brewers returning from previous years who are bringing some fan favorites and new brews to try,” said John Fosberg, festival organizer, “but we also have a great crowd of new brewers who’ve never poured at the event, so we’re looking forward to getting familiar with their beer as well.” Participating area brewers include 7 Seas Brewing of Gig Harbor, Bainbridge Island Brewing, Der Blokken of Bremerton, Hood Canal Brewery of Kingston, Rainy Daze Brewing Co. of Silverdale, Silver City Brewery of Bremerton, Slippery Pig Brewing of Poulsbo, and Sound Brewery of Poulsbo. Heritage Distillery of Gig Harbor also will be in attendance offering samples of their award-winning spirits. Tickets are $25 and are available online by visiting the festival’s website at www. gigharborbeerfestival.com, or www.brownpapertickets.com. Ticket includes a commemorative taster cup and eight tokens. Additional taster tokens will be on sale during
the festival. Depending on availability, tickets may be on sale the day of the event for $25. The Gig Harbor Beer Festival benefits the Gig Harbor Kiwanis Foundation. For more information, email contact@ gigharborbeerfestival.com.
Silver City Brewery brings back Mariners Pub Crawl A popular pairing of beer and baseball will return this summer as Silver City Brewery of Bremerton sponsors the Mariners Pub Crawl on June 28. This is the third time Silver City has organized the event, although it was not held last year because the regional craft brewery was focused on participating in other events inside Safeco Field. Kurt Larson, director of sales and marketing, said Silver City is bringing the pub crawl back because “we want to do something for fans.” The brewery will have a registration booth set up outside Swannie’s sports bar in Seattle’s Pioneer Square, where the event will begin at 5:30 the night of the game. A $30 ticket includes game admission, a commemorative T-shirt, and a passport listing the nearby establishments taking part in the event. Participants can visit those bars to get their passports signed. No purchase is re-
quired, but the bars will be offering specials on Silver City beers, Larson said. Passports will be turned in at the game for prize drawings, and winners will be notified later. The first event in 2011 drew about 150 people, and the next year there were over 200, Larson said. “We’ve got 300 tickets set aside for this year,” he said. Silver City, which Larson noted is the 10th-largest brewery in the state in terms of production, has its beers on tap at numerous concession stands inside Safeco Field, and there will be a special stand set up near the upper-deck section where pub crawl ticketholders will be sitting.
Tickets are available online through Brown Paper Tickets. For more information, check silvercitybrewery.com.
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TECHNOLOGY | CHARLES KEATING
Net neutrality: The debate is on Recent Federal Communications Commission proposals to allow Internet service providers (ISPs) to charge content providers for faster Internet access on the basis of “commercial reasonableness” has uncorked a grand debate between those who want more or less regulations and openness. Issues of competition, innovation, rights, privacy and intellectual property all overlap in this high-stakes tug-of-war for the Internet. The short-term outcome is anything but clear, but change is coming. To help unravel the issues, think of a barbell. At one end are consumers and small businesses, the Internet is the pipe in the middle and at the other end are vast data centers with service providers (Netflix, Google, Facebook, Amazon, etc.) along with content creators who use both those services and traditional networks to distribute their content (movies, TV shows, songs, cu-
rated databases, etc.). Everyone pays for an Internet data services connection on which to send and receive content. The Internet was grown up alongside the traditional networks of radio, over-the-air broadcast TV and cable video networks. On the Internet every day it costs less and less to store, process and transport vast quantities of data. Internet services are rapidly evolving and the converged network already incorporates video and phone networks. The Internet of things is coming. Content still costs to create and content owners continue to seek opportunities to reach customers directly. At the consumer and end-user side of the networks are hundreds of millions of users on cable and DSL, and wireless subscribers with devices everywhere. Internet bandwidth is the water that makes all the other Internet services possible, and it competes in many cases with traditional networks. Regulators have allowed a lot of leeway for the Internet to develop, promoting com-
WWU to host info sessions for Bachelor of Business Administration degree at OC The Western Washington University Center at Olympic College in Poulsbo will host information sessions on Wednesday, May 14, on the new program offering a bachelor’s degree in Business Administration. The sessions will be at noon in HSS 0209 on the main Olympic College campus in Bremerton, and at 3:30 p.m. in Room 105 at
Olympic College in Poulsbo. Attendees will have an opportunity to learn about benefits of the degree, course requirements for admission, how to apply for the program, tips and deadlines, financial aid resources and career services. Applications are currently being accepted for fall 2014 on a space-available basis. The program will offer
classes beginning in September at the newly created Western Washington University Center at Olympic College in Poulsbo. Offered through Western’s College of Business and Economics, the program is designed to prepare students for leadership roles in business and the community. A bachelor’s in business administration is beneficial for students with a variety of career goals, including opportunities with financial insti-
petition and innovation, and where users could purchase unbundled services many have “cut the cord” and buy only what they need. The open Internet rules were designed to support this process while managing the relationship between the Internet and traditional networks. It’s not an easy balance to strike. Previous appeals court rulings struck down earlier net neutrality rules, stating that the FCC overstepped its authority while at the same time affirming it can write rules. Internet providers pledged to stick to open Internet guidelines. Despite this, recently Netflix customers on Comcast were having increasing performance issues to such an extent that Netflix made a deal to pay Comcast for preferred bandwidth, while at the same time petitioning the FCC to maintain open network standards contrary to this deal. Service improved immediately (demonstrating network capacity was not at issue) but the solution is contrary to open Internet ideals. Preferred bandwidth deals would exclude smaller startups and create potentials for artificial scarcity. By raising the issue now the decision on rules and how services are classified and regulated is on the table. The Supreme Court case of Aertutions, manufacturing and retail firms, service industries and the public sector. The WWU Center at Olympic College in Poulsbo is a collaboration between OC and Western Washington University; it is part of
eo vs. broadcasters (capturing over-the-air HDTV broadcasts and providing them as an Internet service) and the Comcast-Time Warner merger are also in the mix. One of the rationales behind the merger is to create economies of scale to negotiate with the content owners, who in turn seek the best deals for their content and more direct access to consumers. Aereo competes with the broadcast model. Regulators, legislators and Supreme Court justices have expressed a keen understanding that an open and innovative Internet is the key. Personally I expect in the short term new regulations and mergers will occur – but also strong support for continued unbundling of network connectivity from services so consumers can access Internet-based innovation and competition. • 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).
a joint vision to serve the community and businesses on the Kitsap and Olympic peninsulas. Through the partnership, Western will offer a variety of degree programs, professional development opportuni-
ties, a lecture series, and programs for youth grades K-12. For more information, visit www.wwu.edu/peninsulas or call Kathy Johnson at 360-394-2733.
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30 NE Romance Hill Road, Belfair, WA 98528 | 360.275.4267 | northmasonchamber.org | explorehoodcanal.com
MAKE A NOTE OF IT UPCOMING EVENTS
ENGAGE … ENERGIZE … EXCEL Chamber Sets the Stage for Success might be surprised to be sitting next to a government official in a suit and tie on one side and a personal trainer in gym shorts on the other. And that’s just the beginning.
THURSDAY, MAY 8 After Hours at the Vintage Dragonfly in Allyn, 5-7pm
WEDNESDAY, MAY 28 Monthly Luncheon at the Theler Community Center in Belfair, 11:30am-1pm Topic: “What’s Up this Summer: The latest on Hwy 3, the HUB, and more” Sponsor: Acupuncture and Wellness Center, P.S. Live music by Rhythm & Sass
WEDNESDAY, JUNE 4 Build Your Business Breakfast at Lennard K’s, Allyn, 7:30am-9am
THURSDAY, JUNE 12 After Hours at Kitsap Bank in Belfair, 5-7pm
OUTSTANDING MEMBERS OF THE MONTH
Stephanie Rowland President & CEO North Mason Chamber of Commerce While chambers of commerce may offer similar events and networking opportunities, no two chambers are exactly alike. At the North Mason Chamber of Commerce, we’re especially proud to be known for our enthusiasm and warm and welcoming style. At any one of our events, you
We have teachers, attorneys and small business owners to be sure, but we also have a vintage furniture restorer and a chainsaw carving school, and associations that sponsor festivals celebrating everything from Northwest art to oysters and geoducks. You’ll find our board members trading in their business attire for aprons to expertly grill our Harry Martin’s World Famous oysters at OysterFest in October and flip pancakes at Scott McLendon’s Annual Sale and Free Pancake Breakfast every May. You just never know what to expect, but one thing is certain – we are expert at providing networking opportunities that make our members and future members feel comfortable. Business is built on relationships, and successful connections begin in more places than the boardroom!
WINNING EVENTS THAT MEAN BUSINESS
More than 65 members and guests enjoyed live music by Missy G and a magical view of Hood Canal at our April After Hours event at The Bend on Hood Canal. Located just up the hill from Alderbrook Resort in Union, The Bend is well known for its 270-degree view of the canal and the Olympic Mountains.
Chamber Chairman Darren Corliss (right), welcomes new member Bill Kendrick, President of LOVE Inc. of Mason County, to his first Chamber After Hours event.
April: Karen Novoa, Kitsap Sun
March: Jeff and Dena Baker, Local Wrench Chamber members congratulated Local Wrench’s Jeff and Dena Baker as Members of the Month at the March Chamber luncheon at The
February: Charles Wilder and Jaime Parada, Costco Gig Harbor January: Pamela White, Outlook Writing & Design
Chamber member Heather Simeral of Wild & Woodsy Catering prepared a feast for the April event. Heather and her husband, Fred, specialize in delicious, healthy food tailored to meet and exceed their customers’ expectations.
Chamber President & CEO Stephanie Rowland congratulates Pamela White, owner of Outlook Writing & Design and PACE Academy teacher, as January Member of the Month. Pam has been an active member of the Chamber for years,
Kitsap Sun Account Manager Karen Novoa was recognized for her outstanding contribution to the Chamber’s “Build your Business” breakfast series, which she now chairs. Karen is also a member of the Chamber’s new Ambassador team, specializing in introducing new businesses and members to the Chamber and assisting them with their marketing needs. She is well known for her expertise in this area through her work with Mason County Life and the Kitsap Sun. Theler Community Center in Belfair. From left, Chamber Chairman Darren Corliss, Jeff and Dena Baker, owners of Local Wrench, and Kim Haack, Manager of Kitsap Bank in Belfair. All makes and models are welcome at Local Wrench, as they are well-known for their expertise in all areas except for painting. “Our customers have learned to trust us and trust our repairs,” said owner Jeff Baker. “They come from all over the area, from Poulsbo to Gig Harbor and Shelton.”In business since 1966, Local Wrench is the only AAA auto approved auto care in Belfair and has four full-time ASC certified technicians on staff. Charles Wilder (left) and Jaime Parada (right) from Costco were honored for their active involvement in Chamber and community activities throughout the year, and especially for their excellent contribution to the Chamber’s Annual Gala as emcees of the “Sweet Things Dessert Auction.” Jaime and Charles’ enthusiasm and energy set the tone for a successful auction the moment they stepped onto the stage. Thanks to their efforts and generous donations by the community, more than $1,500 was raised for Chamber programs.
and serves as a Chamber Trustee. In addition to her work on the Board, Pam brings her artistic flare to the Chamber’s marketing materials and website. She is a dedicated volunteer throughout the community and was recognized at our January Membership Luncheon featuring Seahawks announcer Randy Rowland.
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CAR REVIEW | 2014 HONDA ACCORD
Gas or hybrid — take your pick By Lary Coppola For the KPBJ
Both an all-new Accord sedan and coupe were introduced last year, and only minor updates have been made for 2014. However 2014 saw the debut of a regular gas/electric hybrid model and a limited-production, plug-in hybrid as well. The benchmark for this particular market segment — which also includes the Nissan Altima, Ford Fusion, Subaru Legacy and VW Passat — the Accord, much like its main competitor, the Toyota Camry, has also always been considered somewhat mundane. The Accord lineup offers something for everyone — well almost, anyway. The Accord doesn’t have an all-wheel drive version like the Fusion or Legacy, nor is a diesel option like the Passat offered. Model Lineup: The 2014 Accord, and Accord Hybrid 4-door sedans are offered in three trim levels — LX, Sport, and EX/EXL. There’s also an EX-L Touring version. Except for choosing an automatic transmission in the LX model instead of a manual, major options for the 2014 Accord come with moving up the trim level scale. Among the most desired available options are the V6 engine, satellite navigation, Sirius/XM satellite radio, a 7-speaker/360-watt audio system, 18-inch wheels, leather seating, the multi-angle rear-view camera, HomeLink
remote system, LED headlights, blind-spot display, and adaptive cruise control. Additional personalization options include a sport grille, underbody kit, rear spoiler, remote engine-starting unit, and illuminated doorsill. The basic LX is pretty well-equipped, featuring an 8-inch color display, rear-view camera, dual-zone automatic climate control, 16-inch wheels, and a 160-watt AM/ FM/CD stereo with Pandora Internet radio compatibility. The Sport adds a power driver’s seat, 18-inch alloy wheels, and a small horsepower increase, while EX models include a power moonroof and the LaneWatch system. EX-L models add leather, upgraded audio, heated front seats, and lane-departure warning. The top-of-the-line EX-L Touring model has a standard V6, forward collision warning, and adaptive cruise control. Hybrid models include LaneWatch, LED daytime running lights and a 10-way power driver’s seat. Moving up from the base trim to the EX-L also adds heated front seats along with lane departure and forward collision warning systems. The Touring trim adds a navigation system, Honda’s Homelink technology, and adaptive cruise control. All 2014 Accord Hybrids are equipped with 17-inch wheels. WALKAROUND : The Accord sedan is more than 3 inches shorter and more rounded than the previous version, but still easily
identifiable as an Accord. The grille boasts classy horizontal bars with the Honda badge stationed in the middle. The sedans have a low beltline where the side windows meet the sheet metal to offer improved visibility — especially for rear seat passengers. The EX and EX-L add premium touches such as LED brake lights and daytime running lights. Other than that, not much has changed from the 2013 redesign. INTERIOR : The interior of both the gas and hybrid versions feature the same quality of materials and the same level of comfort, functionality, and technology, including USB and iPod ports. Other than the instrumentation displays and the powertrain, there’s seemingly no difference in these two vehicles inside or out. Visibility is excellent from the driver’s seat, and thanks to the low beltline, from the rear seats as well. Honda’s LaneWatch
camera system — standard on all trim levels — displays the image of the driver’s right-side blind spot when the right turn signal is activated. UNDER THE HOOD : There are two engine choices and three new transmissions offered in gas-powered versions of the 2014 Accord. The base is a 2.4-liter 4-cylinder that delivers a healthy 185 horses (189 in the Sport version), and was the powerplant in our test version. The optional engine is a 3.5-liter V6 that harnesses 278 horses. In the sedan, 4-cylinder engines are linked to a 6-speed manual or Continuously Variable (CVT) automatic, and V6 engines are connected to a 6-speed auto. Both our test vehicles were equipped with the CVT. The Accord Hybrid utilizes a 2.0-liter 4-cylinder, dual-overhead cam, Atkinson cycle, i-VTEC gas engine rated at 141 horses with 122 lb-ft of torque married to a pair of electric motors. The combination delivers 196 horses and 226 lb-ft of torque to the Accord Hybrid. Honda’s CVT replaces a traditional transmission by using the electric motor to send power to the front wheels during both city driving and highway cruising. Behind The Wheel: The difference between the performance of the two Accords is in the eye of the beholder. Ride quality, SEE HONDA | 35
CAR REVIEW | 2014 TOYOTA COROLLA
A popular compact gets better By Lary Coppola For the KPBJ
The venerable Toyota Corolla has enjoyed the title of the world’s most popular compact for almost a half-century — 47 years to be exact — with good reason. Since debuting in 1966 as a roller skate-sized compact, Toyota has sold 40 million Corollas worldwide, with continuing strong sales. The 2014 model marks the Corolla’s 11th generation, and its first redesign since 2008. Following Toyota president and CEO Akio Toyoda’s decree that Toyota â€œâ€Świll build no more boring cars,â€? the 2014 Corolla is certainly more stylish than any previous Corolla. CEO Toyoda keenly understands that every single upgrade — large or small — is critical to maintaining Toyota’s pole position in the red-hot compact market segment. Facing intense competition from not just traditional rivals Honda and Nissan, but Kia, Hyundai, Subaru, and more recently Chevy and Buick, living up to Toyota’s reputation for mechanically bulletproof, affordable, quality compacts is more critical than ever. The 11th-generation Corolla faithfully follows that mantra. MODEL LINEUP: The base 2014 Toyota Corolla L comes with a 1.8-liter, 132 horsepower, DOHC 16-valve, inline-4, with a
6-speed manual or optional 4-speed automatic transmission, with electric power steering, front disc brakes, rear drum brakes. Standard are manually controlled A/C, fabric upholstery, six-way driver seat, four-way passenger seat, 60/40 split rear seats, power windows with driver-side one-touch up/down, tilt/telescopic steering-wheel with audio controls, four-speaker AM/FM/CD, auxiliary USB 2.0, audio and iPod jacks, Bluetooth, voice command, LED lowbeam headlights, halogen highbeams, LED daytime running lights, color-keyed outside mirrors, ECO indicator, 15-inch wheels. The Corolla LE upgrades to continuously variable transmission (CVT), automatic climate control, six-speaker audio multimedia with 6.1-inch touchscreen, voice recognition, steering wheel voice command controls, Bluetooth audio streaming, chrome interior trim, rearview camera, variable intermittent wipers, cruise control, automatic power door locks, remote keyless illuminated entry, 16-inch wheels. The Corolla LE Plus package upgrades to 15-spoke wheels, fog lights. LE Premium adds fog lights, heated power seats. Corolla LE Eco — our test vehicle — uses the 140-horsepower Valvematic 1.8-liter DOHC 16-valve engine, and adds a rear SEE COROLLA | 35
A full service collision repair shop. Our goals are to provide a top quality repair to your vehicle, as well as top quality customer service to you. We offer secured storage with all repairs done on site. t 'VMM GSBNF VOJCPEZ SFQBJS t *O IPVTF QBJOU DPMPS NBUDIJOH t 8F XPSL XJUI ZPVS JOTVSBODF DPNQBOJFT t 8F DBO BSSBOHF GPS B SFOUBM DBS t $VTUPNFS QJDL VQ BOE ESPQ Pò t "MM XPSL HVBSBOUFFE
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spoiler and 15-inch wheels with wheel covers. LE Eco Plus adds custom 10-spoke 16-inch wheels, chrome beltline, ECO Drive buttons. LE Eco Premium adds custom 10-spoke, 16-inch wheels, ECO Drive buttons, and 8-way heated power seats. The top-of-the-line Corolla S comes with the CVT with Sport drive mode or a 6-speed manual, integrated fog lights, chrome grille surround with piano-black insert, heated power outside mirrors with turn signals, rear spoiler, 16-inch wheels, sport bolster seats with sport fabric insert and passenger seatback pocket, leather wheel with paddle shifters, multi-information display, one-touch lane-change turn signal, and warning messages. S Plus upgrades with seven-spoke 17-inch wheels and rear disc brakes. S Premium includes eight-way heated power seats. Standard safety features on all models include anti-lock brakes (ABS), electronic brake-force distribution (EBD), brake assist, Smart Stop Technology (SST), electronic stability control, traction control, tire pressure monitor, advanced 8-airbag system, seatbelt pretensionersand tensioners for children. A rearview camera is included on upper trim levels. WALKAROUND : No one has ever accused Toyota of being a style leader, yet the 2014 Toyota Corolla, with its distinctive front fascia design, boasts well-rounded contemporary small-car bravura. With the wheelbase a noticeable 3.9 inches longer, it’s also almost half an inch low-
MAY 2014 | 35 er and wider as well. So while it’s still a compact, its exterior proportions have changed to improve appearance, utility, and interior room, resulting in an impression of sleekness never before associated with Corolla design. The body’s clean lines, which include LED headlights, produce extremely low coefficient-of-drag numbers, translating into considerable fuel mileage savings at highway speeds. INTERIOR : The increased length of the 2014 Corolla creates a considerable increase in comfort and cabin space — including a genuinely impressive increase in rear seat legroom. The front seats, which featured the optional Softex fabric, are firm, comfortable, and supportive with well-fitted side bolsters and good lumbar support, while the increase in length adds front seat adjustment travel. Interior materials are high quality, with nice soft-touch surfaces throughout. Instrumentation on our Corolla LE was a three-gauge layout that includes the speedometer and tach, along with fuel and other standard gauges that are easy to read in low light or bright sun. There’s even more trunk space than before thanks to Corolla’s increased length. Trunk space has grown to 13 cubic feet, and the 60/40 split rear seats allow stowing long cargo. UNDER THE HOOD : Despite utilizing the same 1.8-liter inline-4 powerplants as the 2013 models, the new Corolla boasts a small gain in EPA fuel mileage numbers across its entire line. Our test vehicle Corolla LE Eco featured the new
Valvematic system, which delivers an EPA-certified 42-mpg Highway rating — the highest among gas-powered compacts using an automatic transmission. BEHIND THE WHEEL : The new 2014 Corolla exceeded our expectations, and delivers an undeniably improved driving experience. Handling and braking are much improved and the new Corolla’s electric power steering was more sensitive than anticipated, with good feel and responsiveness. The brakes, despite rear drums, delivered straight and true braking, although like most small cars, produced very pronounced dive under heavy braking. Though generating a fair amount of road noise on less than ideal pavement, the ride was smooth and controlled even at freeway speeds and more. Cornering was excellent, minimizing body roll, so while it’s no sports sedan, the Corolla’s athletic driving feel is akin to some higher-priced small European sedans. WHINES : The heavy-looking black rectangular mass of dashboard seems out of place in a car this size, taking far more cabin space than it should, with none of the fluidness that embodies the rest of the new Corolla. BOTTOM LINE : Strange as it may sound, the 2014 Corolla is pretty fun to drive. With new levels of comfort and dramatic improvements in ride and handling, it‘s no longer just basic transportation. It’s attractive price point — $23,270 as tested — coupled with traditional Toyota quality and reliability make it a tough competitor — and a great value.
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comfort and quietness in general is pretty pleasing for either Accord, with improved noise reduction over previous models. Steering in either offers little in the way of feedback and is about as numb an anything else in this class — except perhaps the Fusion. The Accord Hybrid’s regenerative brakes have a nice, solid feel, and lack the jerkiness found in some hybrid systems. The clue you’re driving the hybrid occurs when strong power is suddenly needed, and you experience that lethargic acceleration hybrids are famous for. However, unless you have to put the pedal to the metal, everyday cruising feels pretty much the same in either Accord. The transitions from gasoline to electric are smooth, and the Accord is noticeably quiet when running on electricity alone. EPA ratings for the 2014 Accord Hybrid are 45/ city, 50/highway, with a combined rating of 47 mpg. The gas version is 27/city, 36/highway for a combined 30 mpg. We found those numbers pretty spot-on. If you lighten up on your right foot you can exceed them. WHINES : I’m not a fan of CVTs in general. Under hard acceleration, to me at least, they sound and feel like ’60s-era cars with slipping automatics. BOTTOM LINE : Either Accord is pretty good, but we recommend the hybrid. It utilizes advanced technology making it what we believe hybrids should have always been — ultra-economical versions of mainstream vehicles so similar in feel and driving dynamics that except for increased fuel economy, most consumers wouldn’t notice the difference. In the entire week we drove it, we didn’t have to buy gas and returned it with over half a tank left.
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Bainbridge firm wins national award for ‘green’ renovation of federal building The American Institute of Architects has recognized Cutler Anderson Architects of Bainbridge Island with a Committee on the Environment Top 10 Award. The award is for the ‘green’ renovation of the Edith Green Wendell Wyatt Federal Building in Portland. The renovation yielded energy savings, healthy work environments and improved accessibility for 16 federal agencies and tenants. The old building was an energy hog, outdated and slated for demolition. But as part of the American Recovery & Reinvestment Act (ARRA), the owner, U.S. General Services Administration, hired Cutler Anderson Architects as design architect, with SERA Architects as executive architect to modernize the existing 18-story building to make it energy-efficient, expand rentable space and increase blast resistance. The AIA Top 10 jury commented that the project “takes a really challenging building type, a generic, high-rise office building, and rethinks it.” The building will achieve a 60 percent saving in potable water and 55 percent reduction in total energy usage. The building’s facades are tuned to respond to solar gain on each side; horizontal light shelves on the south and east sides, with vertical ‘reeds’ providing shade on the west. A mixture of evergreen and decidu-
ous vegetation weaves through the reeds to provide shade in the summer and optimize daylight during the winter months. A rainwater-collecting roof canopy supports a 180 kW photovoltaic array and funnels water to a repurposed 165,000-gallon cistern for use in irrigation, low-flow toilets and a mechanical cooling tower. This project began with a High Performance Green Building Workshop, where the two teams employed building information modeling (BIM) technology to develop and analyze data, which was then synthesized into an aesthetic expression to communicate sustainability on an emotional level, both inside and out. This LEED Platinum building will act as a showcase for renovation of other federal properties. Cutler Anderson Architects, a 14-person firm, has received six National AIA Honor Awards and over 45 national and regional design awards.
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one of two nonprofit communitydevelopment organizations listed by the SBA as a microlender, is a certified financial institution. But because of its model, it can take on more risk. Che Wong, a senior loan officer, said MercyCorps advis— Lishu Rodriguez, owner of El Dot Designs ers not only help with business plans and projections but also take the time to understand the reason behind low credit scores, if that’s an on a larger scale, so this year their goal is issue. to scale up by partnering with local or naShe said the main difference in the Mertional retailers. cyCorps process is that the loan is approved “We’re definitely ready to grow,” she said. in-house — but the paperwork is very simi“But unless I have a contract in place from lar to that of a bank’s. “We look at the same a major retailer, I’m not going to approach things a bank does but our thresholds are banks.” more lenient and flexible,” she said. Instead, she plans another crowdfundWong, who is currently helping a Kitsap ing campaign — this time, through indibusiness obtain a microloan, has worked in egogo.com, as early as July. The goal is to this field for about nine years. use existing inventory as incentives (called “There’s definitely a demand for these “perks”) for the donors. Then, the company programs, especially in this economy, bewill likely seek venture capital financing to cause many people became unbankable,” take the big leap. she said. Getting her start through CA$H, RodriA microloan typically requires the busiguez said, was invaluable. And it helps that ness to contribute cash for a percentage of the refinanced loan — even though it took the financed capital, essentially a downa year to get approved — gives her some payment. In the case of an SBA-backed flexibility. loan, that’s usually 10 percent. “Programs like Washington CA$H are “I tell everybody, save your money so you established to help entrepreneurs and I have a big down payment,” Jones said. “And have a personal connection with them, unthink about how much do you really need. like my bank. The process was a lot more Startups that bootstrap tend to do better personal,” she said. than those that get big loans.” Financing through MercyCorps NorthSome businesses use a crowdfunding dowest is a similarly personal process that innation platform to come up with that down cludes technical assistance. MercyCorps,
by the Small Business Administration but are more flexible than traditional SBA microloans offered through a bank. When Lishu Rodriguez became eligible for the CA$H business builder loan after successfully repaying through the peerlending program, she used it to refinance an existing crowdfunded loan and cut her interest rate in half. Rodriguez, who owns El Dot Designs with her husband, Leo, had borrowed $20,000 through the Lending Club, another online crowdfunding platform. The couple design furniture made both locally and in Nepal and India. They used the money to pay for a container of furniture from overseas. “It was a high-interest loan (with the Lending Club) but it was the only way to get cash for my business fairly easily,” Rodriguez said. The couple have been designing furniture for about 10 years, originally at a small studio in Los Angeles. The business expanded when they moved to Nepal, Lishu’s native country, where the two had several employees. But Leo, who hails from Venezuela, wanted to come back to the U.S. four years later. After settling in Poulsbo, the two found a way to combine their talents and local wood resources with the work of the artisans in Nepal and India. A certified B Corp (beneficial corporation), El Dot Designs is focused on sustainable practices and reusable materials. Rodriguez said they want to make an impact
The photo at top right shows the west-facing side of the renovated Edith Green Wendell Wyatt Federal Building in Portland. Cutler Anderson Architects of Bainbridge Island won an award for its work as design architect on the renovation that made the old building highly energy-efficient. Photo at right shows an interior view.
Washington fares well in new report ranking taxpayer ROI for all states Following its Federal Dependency and State Tax Rate reports, WalletHub.com has released its latest analysis of the U.S. tax landscape, an in-depth look at which states give taxpayers the Best & Worst Return on Investment. WalletHub used 27 metrics to compare the quality and efficiency of state government services across six distinct categories – Infrastructure, Education, Health, Safety, Economy and Pollution – to the drastically different rates at which citizens are taxed in each state and municipality. A brief overview of how Washington ranked in the report is shown below. For the full report, visit: wallethub.com/edu/state-taxpayer-roireport/3283/ Washington Taxpayer ROI • 4th – Overall ROI Rank • 6th – Tax Rate Rank • 30th – Infrastructure • 15th – Education • 8th – Health • 16th – Safety • 21st – Economy • 11th – Pollution Source: WalletHub
PHOTOS BY NIC LEHOUX, COURTESY OF CUTLER ANDERSON
“We’re definitely ready to grow. But unless I have a contract in place from a major retailer, I’m not going to approach banks.”
payment. From a bank’s perspective, that’s likely an acceptable source. “We don’t want them borrowing money (for their cash contribution) because that impacts their cash flow. But if they get donations through crowdfunding, yes, they could utilize that,” said Leslie Peterson, lending officer at Poulsbo-based Liberty Bay Bank. Peterson said there’s a major advantage for a startup to work with someone like the Small Business Development Center or the Kitsap Entrepreneurial Center, another nonprofit that works with small businesses and also serves as an incubator. She said she has financed several small businesses that went through one of those programs first in order to develop a solid business plan and projections. “The banks won’t loan to you until they have a level of confidence you’ve done your work,” she said. “Make sure you’ve thought through how you’re going to operate your business and be realistic about your costs. Use those nonprofits as a resource.” Whatever alternative path a business takes to fund its next level of growth, Peterson has one major piece of advice: Ditch the credit cards. “One of the biggest mistakes we see business owners make is start a business using credit cards. Then they get into a bind down the road because they don’t have sufficient capital and they’re in debt,” she said. “Do not capitalize initially with credit cards. It’s the worst thing you can do.”
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KITSAP PENINSULA BANKING INSTITUTIONS AND BRANCH LOCATIONS • 1ST SECURITY BANK OF WASHINGTON (www.1stsecurity ofwa.com) (800) 683-0973
POULSBO 19725 Seventh Ave. NE SILVERDALE 10488 NW Silverdale Way
POULSBO 21650 NW Market Pl. (360) 779-4488
• KITSAP CREDIT UNION (www. kitsapcu.org) (800) 422-5852
• ALASKA USA FEDERAL CREDIT UNION (www.alaskausa.org) (360) 876-0119
BELFAIR 51 NE State Route 300 BREMERTON 155 Washington Ave. 6651 NE State route 303 1001 Sixth St.
PORT ORCHARD 3355 Bethel Road SE • AMERICANWEST BANK (www. awbank.net) BAINBRIDGE ISLAND 921 Hildebrand Lane (206) 842-6929 POULSBO 18960 State Route 305 N (360) 394-1701 • BANK OF AMERICA (www.bank ofamerica.com) (800) 442-6680 BAINBRIDGE ISLAND 1200 NE Hildebrand Lane BREMERTON 1600 NE Riddell Road 1000 Sixth St. GIG HARBOR 4815 Point Fosdick Drive NW KINGSTON 10943 NE State Route 104 PORT ORCHARD 1497 Olney Ave. E POULSBO 19255 Jensen Way NE SILVERDALE 9981 Silverdale Way NW 10574 Silverdale Way NW • BOEING EMPLOYEES’ CREDIT UNION BECU (www.becu.org) (800) 233-2328 SILVERDALE Safeway – 2890 NW Bucklin Hill Road
LARRY STEAGALL/KITSAP SUN
Navy Federal Credit Union is going to move its Bremerton branch on Auto Center Way to the Tim Ryan Building downtown. GIG HARBOR 5004 Point Fosdick Drive NW 5225 Borgen Boulevard NW
GIG HARBOR 5101 Point Fosdick Drive
KINGSTON 8196 NE State Route 104 PORT ORCHARD 393 S. Kitsap Blvd. 1031 Bethel road
PORT ORCHARD 4350 SE Mile Hill Drive Fred Meyer – 1900 SE Sedgwick Road
• KEYBANK (www.key.com) (800) 539-2968
POULSBO 19045 State Route 305, Suite 200
POULSBO 20350 Little Valley Road NE
BAINBRIDGE ISLAND 617 High School Road NE
SILVERDALE 10745 Silverdale Way NW
BELFAIR 23731 NE State Route 3
SILVERDALE 9481 Silverdale Way NW 2041 Myhre Road
• COLUMBIA BANK (www.columbia bank.com) (800) 304-0050 BAINBRIDGE ISLAND 249 Winslow Way East 208 High School Road 23961 NE State Route 3 GIG HARBOR 5303 Point Fosdick Drive NW 3006 Judson St, Suite 101 KINGSTON 26563 Lindvog Road NE PORT ORCHARD 228 Bravo Terrace POULSBO Central Market — 20148 10th Ave. NE SILVERDALE 10100 Silverdale Way NW
• CHASE BANK (www.chase.com) (877) 682-4273
• CONNECTION CREDIT UNION (www.connectioncu.org) (360) 3076400
BAINBRIDGE ISLAND 231 Winslow Way E
BREMERTON 2525 Sixth St.
BELFAIR QFC — 201 NE State Route 300
PORT ORCHARD 1026 Sidney Ave. (inside the Givens Center)
BREMERTON Fred Meyer — 5050 State Route 303 NE 500 Pacific Ave.
citizens.com) (888) 323-4732
GIG HARBOR 4747 Point Fosdick Drive NW
SILVERDALE 10200 Silverdale Way • FIRST CITIZENS BANK (www.first
BREMERTON 3570 Wheaton Way GIG HARBOR 5001 Olympic Drive NW, Ste 101 3216 Judson St. 5055 Borgen Blvd NW PORT ORCHARD 1301 Bay St. SILVERDALE 9338 Silverdale Way NW • KITSAP BANK (www.kitsapbank. com) (800) 283-5537 OR (360) 876-7800 BAINBRIDGE ISLAND 10140 NE High School Road BELFAIR 24180 NE State Route 3 BREMERTON 607 Pacific Ave. 3425 Wheaton Way 1140 Marine Drive 6733 NE State route 303 GIG HARBOR 4714 Point Fosdick Drive NW 7109 Pioneer Way KINGSTON 8190 NE State route 104 PORT ORCHARD 619 Bay St. 1700 Village Lane SE 3324 Bethel Road
• LIBERTY BAY BANK OF WASHINGTON (www.liberty bankwa.com) (360) 779-4567 POULSBO 19917 Seventh Ave. NW, Suite 101 • NAVY FEDERAL CREDIT UNION (www.navyfederal.org) (888) 842-6328 BREMERTON 4980 Auto Center Way SILVERDALE 3340 NW Randall Way • PENINSULA FEDERAL CREDIT UNION (www.pcfcu.org) (800) 426-1601 BELFAIR NE 23550 State Route 3 PORT ORCHARD 1081 Bethel Road POULSBO 21505 Market Place NW, Suite 109 • SOUND CREDIT UNION (www. soundcu.com) (800) 562-8130 GIG HARBOR 4521 Point Fosdick Drive NW KEY CENTER 8920 Key Peninsula Hwy N • STERLING SAVINGS BANK
(www.sterlingsavingsbank.com) (206) 842-8676 BAINBRIDGE ISLAND 600 Winslow Way E, Suite 120 • TIMBERLAND BANK (www.timber landbank.com) (800) 562-8761 GIG HARBOR 3105 Judson St. POULSBO 20464 Viking Way NW SILVERDALE 2401 NW Bucklin Hill Road • UMPQUA BANK (www.umpquabank. com) (866) 486-7782 GIG HARBOR 3123 56th Street Court NW 4949 Borgen Blvd. #101 • US BANK (www.usbank.com) (800) 872-2657 BREMERTON 2020 Sixth St. GIG HARBOR Safeway — 4831 Point Fosdick Drive NW Albertson’s — 11330 51st Ave. NW PORT ORCHARD Albertson’s — 1434 Olney Ave. SE Albertson’s — 370 SW Sedgwick Road SILVERDALE Albertson’s – 2222 NW Bucklin Hill Road • WASHINGTON FEDERAL SAVINGS (www.washingtonfederal.com) (360) 479-4040 BREMERTON 5265 State route 303 NE POULSBO 18960 State Route 305 N, #103 • WELLS FARGO BANK (www.wells fargo.com) (800) 869-3557 BAINBRIDGE ISLAND 1180 Hildebrand Lane NE BREMERTON 2602 Sixth St. 2550 sixth St. (Motor Bank) Safeway — 1401 NE McWilliams Road GIG HARBOR 5501 Soundview Drive PORT ORCHARD 1488 Olney Ave. SE POULSBO 19044 Jensen Way NE SILVERDALE 9976 Mickelberry Road NW
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State’s taxable retail sales up 5.8 percent in 4Q of 2013 OLYMPIA — In a sign that the state’s economy continues to improve, taxable retail sales were up in the fourth quarter of 2013 by 5.8 percent. Taxable retail sales between Oct. 1 and Dec. 31, 2013, reached $31.1 billion — a $1.7 billion increase over the same period in 2012, according to the Washington State Department of Revenue’s quarterly analysis. Fourth-quarter retail trade purchases increased by 4.9 percent over the same time the previous year, to $14.7 billion. Retail trade is a subset of total taxable retail sales and includes purchases of clothes, home furnishings, books, cars and general merchandise, but excludes sales in industries such as manufacturing and construction. Most categories saw increases in fourth quarter taxable sales: • E-commerce grew by 19.7 percent, to $599 million • New and used car sales increased by 11.4 percent, to $2.5 billion • Lawn care supplies rose by 11.4 percent, to $119 million • Manufacturing was up 10.6 percent, to $611 million • Health and drug stores rose 8.1 percent, to $461 million • Home furnishings were up 7.4 percent, to $551 million
Fourth-quarter 2013 figures for retail sales in the state’s five most populous counties all showed gains from the year before: Taxable retail sales Total taxable retail trade King $12.4 billion (up 6.3%) $5.2 billion (up 5.7%) Pierce $3.2 billion (up 7.8%) $1.7 billion (up 6.7%) Snohomish $3 billion (up 6.2%) $1.67 billion (up 6.5%) Spokane $2 billion (up 5.4%) $1 billion (up 3.3%) Clark $1.3 billion (up 10.7%) $613 million (up 8.7%) Fourth-quarter 2013 figures for cities with the most sales Taxable retail sales Total taxable retail trade Seattle $4.9 billion (up 6%) $1.6 billion (up 5.7%) Bellevue $1.55 billion (up 8%) $757 million (up 1.3%) Tacoma $1.1 billion (up 4.1%) $584 million (up 3.5%) Spokane $1.1 billion (up 4.6%) $530 million (up 1.5%) Vancouver $760 million (up 12%) $361 million (up 14%)
Fourth-quarter sales totals in Kitsap County Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Retail Trade Sales $445,150,504 $470,135,125 $493,353,867 $482,367,317 $432,675,837 $439,156,474 $454,259,848 $447,795,872 $463,140,861 $487,117,141
All Industries $791,525,381 $868,731,873 $922,565,697 $925,280,713 $826,664,401 $798,006,111 $817,906,357 $811,296,620 $838,284,130 $895,050,548
Fourth-quarter retail sales in Kitsap County are climbing back to pre-recession heights. Retail trade sales for the last three months of 2013, which encompass the all-important holiday season, topped 2005 levels and came up just shy of the county’s 2006 peak. Taxable sales in all Kitsap industries were also above 2005 levels. Source: Department of Revenue
Source: Department of Revenue
US sales of medical, recreational marijuana may top $8 billion by 2018 By Anne Holland Marijuana Business Daily
U.S. retail cannabis sales will rise more than fivefold over the next five years, from an estimated $2.2-$2.6 billion in 2014 to $7.4-8.2 billion in 2018, according to new financial data released last month in the 2014 edition of the Marijuana Business Factbook. Although the 2014 estimated sales are right in line with predictions from last year’s edition of the Factbook, the 2018 forecast has risen by roughly $2 billion. This lift is largely due to the impact of last August’s Cole Memorandum wherein the federal Department of Justice stated it would take a hands-off approach to the cannabis industry as long as companies obey local laws, and state regulations and oversight are strict. “You could call it the $2 billion memo,” remarked Chris Walsh, editor at CannaBusiness Media (the publisher of both the Marijuana Business Factbook and Marijuana Business Daily.) “This total is conservative — the reality of retail sales could be larger,” Walsh said. “Nor does it include wholesale cannabis sales, or the billions of dollars in ancillary cannabusiness revenues such as grow-
ing equipment, real estate, legal fees, testing labs, paraphernalia, etc.” The sales estimates include both medical marijuana and recreational cannabis sales, and account for additional states estab-
lishing and launching cannabis sales programs during the time span covered by the forecast. These predictions assume 4-5 new recreational states and 2-3 medical cannabis states will have fully functional pro-
grams by 2018. Recreational cannabis sales are legal in only Washington and Colorado currently. According to estimates, 2018 is anticipated to be the first year that recreational sales match or even overtake medical marijuana sales in the U.S. This data does not include black market sales. However, other research indicates that despite prior industry fears, the majority of cannabis consumers are willing to switch from black market providers when cannabis is legally available in their regions. The U.S. black market is currently estimated to be in the $40 billion range. Thus, the legal marketplace has significant potential beyond 2018. Very few medical marijuana states release data on cannabis sales (or even track it.) Only a tiny slice of cannabis businesses release their financials for public scrutiny. The editors of the Marijuana Business Factbook 2014 used a wide variety of methodologies to create the sales forecasts. Sources include exclusive surveys of both cannabis consumers and cannabusiness executives, as well as statistics and political analysis reported in Marijuana Business Daily and its sister publication, CannaBusiness Magazine.
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Waste Wise @ Work
Newsletter — May 2014
Waste Reduction for Local Businesses We are Waste Wise@Work We’d like to recognize the following businesses who have met the membership criteria and are now RIÀ FLDO PHPEHUV RI WKH SURJUDP Art Anderson Associates Bainbridge Island Historical Museum Bremerton Chamber of Commerce Bremerton Tennis and Athletic Club Clark Whitney, PS Cox and Lucy, CPA Dispute Resolution Center of Kitsap County Ed’s Fly Meat Eddie Bauer Express Services Plumbing Fisher Distinctive Dentistry Greater Kingston Community Chamber of Commerce Herdman Plumbing Hope Center Island Health and Chiropractic Kitsap Sun Kitsap Bank Michael Angelo Construction, Inc. Military Air Cargo Novus Windshield Repair 2IÀ FH ;SDWV Olympic Printer Resources, Inc. 3DFLÀ F 1RUWKZHVW 7LWOH Peace Lutheran School & Church Peninsula Fleet Services Port Orchard Chamber of Commerce Port Orchard Eagles Prototype Tooling & Fabrication SC Fuels Seabeck Conference Center Sound Appraisal Group The Greater Poulsbo Chamber of Commerce The Island School Wall Liebert & Lund P.S. Watson Furniture Wet Apple Media
Your company can reduce waste, too! Complete a Waste Wise @ Work Membership Application On Our Website
Are you Waste Wise @ Work? Your workplace deserves recognition
WHAT YOU GET... Recycling Kits: Information about local recycling options, resources for recycling unusual items, and tips for reducing waste.
Recycling Containers: Durable, blue, desk side recycling containers as an incentive for businesses that improve or add recycling. There is a limit of ten per business, while supplies last.
Recycling Education: Stickers with photos of items that are acceptable for recycling to place on containers, on employee boards, or to post above containers.
Kitsap Bank recognized for recycling efforts
T
he Waste Wise @ Work program recognizes businesses with outstanding recycling and waste reduction practices. Kitsap Bank branches in Kitsap County were recognized as the 2013 Kitsap County Waste Wise @ Work Business of the Year. They recently received an award from the Board of County Commissioners at the Kitsap County annual Earth Day Awards presentation. Kitsap Bank actually saved some green by going green. “We realized we were not recycling as much as we could and that we were using a lot of paper”, President and COO Anthony George said. “We wanted to make sustainable changes in our business model and walk the talk. In the end, we realized that being sustainable helps cut costs.” Kitsap Bank started simple by setting short
term goals in order to make changes. Their initial goals included recycling and reducing garbage, reducing paper usage, purchasing recycled content products, and employee education. “We have accomplished a lot and want to continue to be a community leader with new ideas”, said Vice President Emily Olsen. “We know that sustainability is smart business”. Over 100 businesses participate in Kitsap County’s Waste Wise @ Work program to help businesses and organizations reduce waste. Find out how your workplace can reduce waste, recycle more, and keep dollars out of the dumpster. Join the Waste Wise @ Work program. Apply at www.KitsapGov.com/sw/ww.htm. Contact Waste Wise @ Work at 360.337.4898 or solidwaste@co.kitsap.wa.us.
On-site Waste Evaluations: A recycling specialist visit to do a brief on-site review, provide recommendations, and help implement new conservation strategies.
Kitsap Chambers join the Waste Wise @ Work program. Kitsap County extended a challenge to local chambers to join the Waste Wise @ Work program. To become a member, businesses must have a 40% recycling rate, practice 10 waste reduction activities and use @ least three recycled content products. Two chambers met the challenge in 2014. The Port Orchard Chamber of Commerce and the Kingston Chamber of Commerce have joined the team of local green Chambers. The Poulsbo Chamber of Commerce and the Bremerton Chamber of Commerce joined the program in the winter of 2013.
Contact Kitsap County Public Works, Solid Waste Division: 360-337-4898
www.kitsapgov.com/sw/ww.htm • solidwaste@co.kitsap.wa.us