Kitsap Peninsula Business Journal 24/01

January 2011 Vol. 24 No. 1

The Voice of Kitsap Business since 1988

Port’s Mahan To Retire After 46 years of public service, Mahan will assist local nonprofits, especially those who create jobs.

By Rodika Tollefson Port of Bremerton Commissioner Bill Mahan told the Kitsap Peninsula Business Journal in December he planned to retire on Dec. 31, 2011, when his current term expires. The announcement ends speculation on whether he was planning to run for a third term, and Mahan said he made his decision public early so any other candidates are aware of his intentions and have enough time to campaign.

Mahan started his career in public service in 1964 after being elected as the commissioner of the Annapolis Water District, which later became part of West Sound Utility District. He served as Kitsap County commissioner for 20 years starting in 1968 — the only commissioner to be reelected four times. He has served as port commissioner since 1999, now in his second term.

Bill Mahan, Port of Bremerton Commissioner

Cover Story, page 4 $1.50 Display until February 1st

Inside Special Reports: Healthcare Quarterly, pp 10-15 Neworking, pp 29-31

Technology, pp 8, 9

Editorial, pp 36-38

Financial, pp 16-18 Real Estate, pp 23-25 Human Resources, pg 28 Environment, pg 33 Automotive, pp 34, 35

Port Orchard Chamber, pg 32 Home Builders Newsletter, pp 19-22

Bainbridge Island Rotary announces its new officers Bainbridge Island Rotary Club announces its new officers for the coming year, which include: Tom Rees, president; Vicki Evans, president elect; Todd Tinker, secretary; Mike Killion, trust treasurer; Gary Kuntz, operating treasurer; Gordon Hewes, vice president for lunch; Steve Chupik, vice president for dinner and Ludy Garvin and Sid Ball as new directors.

Haughton starts Automotive Imagineering, LLC A new firm, Automotive Imagineering, LLC, was started by Doug Haughton and designed to assist car owners with a variety of potential car related problems and needs — from classic, to street rod, and includes automobilia appraisal to mechanical investigation, diminished value, consulting and technical writing.

Haughton, who owns Liberty Bay Auto Sales in Poulsbo, is a longtime fixture on the Kitsap Peninsula automotive scene. He not only taught evening automotive classes at Olympic College for several years, but has written and published nearly 300 articles covering a variety of automotive subjects.

Automotive Imagineering, LLC serves Washington, Oregon, and Idaho; and can be reached Monday through Saturday from 8 a.m. to 6 p.m. at (360) 337-2886.

Harrison welcomes new chief financial officer Forrest G. Ehlinger, CPA, has joined Harrison Medical Center as Vice President and Chief Financial Officer. He leads the financial policies, practices and supporting activities to accomplish the organization’s financial strategies. He provides operational leadership to the departments of departments of finance, patient financial services, health information management, supply chain and social work.

With more than 20 years of healthcare industry experience, Ehlinger brings a proven record of strategic, operational and financial accomplishments to Harrison. He previously spent 18 years in Financial Services with Tacoma’s MultiCare Health System, nine of those as vice president of finance. His previous experience also includes work with Regence BlueShield and First Choice Health Network.

Ehlinger received a Bachelor of Business Administration degree in accounting from Gonzaga University in Spokane and a Master of Business Administration from the University of Washington in Tacoma.

2 Kitsap Peninsula Business Journal•KPBJ.com January 2010

Weedin attends professional designation training Dan Weedin, of Toro Consulting, Inc., has successfully completed the Certified Risk Managers (CRM) Control of Risk course held in Las Vegas in December.

The risk management course attended is one of five parts offered by The National Alliance of Insurance Education and Research, the nation’s foremost provider of professional insurance and education.

This is the fourth course he has completed, and after the successful completion of all five courses covering all major areas of the risk management field, and five comprehensive examinations, Weedin will be awarded the CRM designation.

Weedin has held the Certified Insurance Counselor (CIC) designation from the Society since 1996. He also serves as a faculty member for the Society in one of its other designation programs for insurance agents.

For more information, contact Weedin at (360) 697-1058, dan@danweedin.com or visit www.DanWeedin.com.

Amy Burnett to offer a seminar on design Amy Burnett will be offering a design seminar on Saturday, Jan. 15 from 1 to 3 p.m. at the Amy Burnett Gallery in Bremerton.

She will delve into the world of arranging, the psychology of seeing, exploring textbook definitions, hands-on compositional exercises and critiquing several paintings.

The cost is $25 and space is limited. Call (360) 373-3187 for more information.

City of Gig Harbor opens new pier In 2006, as part of an overall clean up of the former Eddon Boat site, the pier and marine railways were removed with a commitment to reconstruct them once the soils re-mediation actions were complete. In 2009, thanks to a Heritage Grant from the State of Washington, the boat building was restored and has been the focus of on-going shipwright and boat restoration programs sponsored by Gig Harbor Boatshop, the tenant of the building.

Last year, a second Heritage Grant was awarded to reconstruct the pier, ramp and float. A portion of the new pier will be dedicated to public use for transient moorage of hand-powered watercraft.

For more information visit www.gigharborboatshop.org or call (253) 857-9344.

Port Orchard’s Hoochieware goes national

Kitsap Wedding and Events show set for Feb. 5

Clean Space Northwest Inc. announced its commitment to marketplace ethics by earning accreditation with Better Business Bureau (BBB).

As a BBB accredited business, Clean Space Northwest has met BBB’s code of business practices and has agreed to maintain honest and reliable business practices.

Clean Space Northwest Inc. is located at 11875 Silverdale Way NW, Suite 105 in Silverdale and can be reached at (360) 6980260, ironwood@hurrican.net or on the web at www.cleanspacenorthwest.com.

Catie Malcom of Catie's Creations will host the 2011 Kitsap Wedding and Events Show at the Kitsap Sun Pavilion on Feb. 5 from 10 a.m. – 5 p.m. The show will feature more than 100 vendors. The event is open to the public and will not just target to brides but to those that will need help planning events including reunions, birthday parties, fundraisers, corporate parties and more.

Only a select few vendor spaces remain, so to reserve one, or for more infomation, contact Malcom at info@thekitsapweddingshow.com, call her at (360) 616-4617, or visit www.TheKitsapWeddingShow.com.

13th Annual Decision Makers Breakfast Kitsap Conference Center January 20, 2010 7:30 – 10:00 a.m.

Keynote Speaker: John Mitchell, PhD A Unique Perspective on the Economy — Plus — Kitsap Energy Future Cost: $50 members/$60 non-members

Cheri’s Sewing Service opens in Bremerton Owner Cheri Reese announced the opening Cheri's Sewing Service in Bremerton. The company provides sewing, alterations, costume and special event clothing. Reese is known for the unique costumes of 'Little Elvis' who performs his Elvis impressions regionally. She has also created other signature products, such as a unique old-fashioned gingham apron.

She is a proud graduate of the Washington Community Alliance for Self-Help (CASH) micro-enterprise program in Kitsap.

Cheri's Sewing Service can be reached at (360) 373-0399, (360) 649-1010 or by e-mail at fun5million@yahoo.com.

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Certified nutritional therapy practitioner joins Curves of Bainbridge Island Megan Gann recently joined the team of fitness instructors at the Curves of Bainbridge Island as a new circuit coach and in-house nutrition counselor. This was a natural transition for her as she recently completed her certification training in nutritional therapy. Gann feels like the combination of her education and the Curves fitness program are ideal for women to work toward optimal health and vitality.

“Working at Curves feels like such a blessing for me as I am able to help people in their process of healthfulness. My goal is to be a facilitator for healthfulness and to provide information so that people can become empowered to take responsibility for their own health,” said Gann.

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Port Orchard-based Hoochieware, a new clothing and body care store, launched its website at the end of November, taking the company nationwide. Hoochieware, which is the brainchild of nationally syndicated radio personality, and South Kitsap resident and entrepreneur, Delilah Rene, gives 100 percent of its net proceeds to Point Hope, a nonprofit she founded to empower women and support families, giving them a hand up instead of a handout, teaching life skills and providing opportunities to be successful.

The physical store has been open downtown for about a year. “We allowed the physical store to be our lab and test merchandise while we designed and developed merchandise for the online store,” said Lexi Winkles, whose title is HGirl-in-Chief. She said the brand’s goal is to appeal to women of all ages, sizes and backgrounds.

Hoochieware's name comes from the original meaning of the word “Hoochie,” used to describe the flappers of the 1920s. These “Hoochies” were courageous, unapologetic and proud of who they were, according to the company. The name, however, has lost its meaning through the years and received a negative connotation.

“We wanted to reclaim the word hoochie,” Winkles said. The company sees Hoochieware customers, called HGirls, as women who share self-pride and confidence.

The Hoochieware collection includes of a full range of clothing and body products including artistic novelty T-shirts, jeans and pants, flirty skirts, chic dresses and body care products. The products are inspired by Delilah and are exclusively designed in Port Orchard.

The apparel, available in sizes XS to XXL, average in price from $35 to $55.

“Hoochieware was created to encourage women to embrace their beautiful, uniqueselves, support one-another and have fun,” Winkles said. “That’s really the true meaning of Hoochie and what being an HGirl is all about.”

Hoochieware is one of several sources supporting Point Hope, a nonprofit whose mission is to empower and educate women from the United States to West Africa by providing the communities they care for with water, food, shelter, clothing, schooling, jobs and heath care.

“Partnering with Hoochieware is a dream come true. We are so thankful for all the courageous HGirls who are standing proud, supporting us and making a difference in our world.” said Jan Haynes, executive director of Point Hope, based in Port Orchard.

The Port Orchard store employs five people, with a total of 10 including serving the entire company. Winkle said one of the goals is to expand seasonal designs. Asked whether there are plans for more physical locations, she didn’t exclude the possibility, saying, “Our intention is to grow.”

The Hoochieware store is located at 835 Bay Street in Port Orchard and includes jewelry designed by That’s Beautiful (the jewelry company, previously owned independently in Port Orchard, recently merged with Hoochieware but the jewelry is not available on the website).

Hoochieware products are also available at www.hoochieware.com.For more information about Point Hope, go to www.pointhope.org.

Clean Space Northwest earns BBB accreditation

from page 1 “At the end of my career I will have spent 46 years serving the public. I will be eternally grateful to the voters that elected me for giving me their trust and the opportunity to serve them,” Mahan said.

The KPBJ visited with Mahan to ask him about his political career, unfinished business and future plans.

KPBJ: What are the projects you’re most proud of working on during your career in office?

Mahan: First, working with the dentists in South Kitsap, I led the effort to fluoridate the water being delivered by the Annapolis Water District. That project saved the teeth of children in the district for the rest of their lives. Secondly, as a county commissioner I was instrumental in establishing the foundation of Kitsap Mental Heath Services. KMHS provides an essential service to our community and is the best provider of those services in the state.

Thirdly, I am so proud of the Port of Bremerton and how it’s evolved as an economic driver for Kitsap County. I am most proud of the development and improvement of the Bremerton National Airport into a first-class general aviation facility. There are so many public work projects that I have been involved in that makes it difficult to identify which one I’m most proud of. Probably the Sedgwick

Corridor from Bethel Road to via Lake Flora Road to the Belfair Highway is it.

When I was first elected county commissioner in 1968, Sedgwick ended a half a mile from Highway 16 and Lake Flora Road was a 3.5-mile of dirt road. I made it a priority to make that corridor safer and easier for the public to travel through.

KPBJ: Any unfinished business for the next year?

Mahan: One of the things I’ll work hard on is to help Bremerton Motorsports Park to get traction for a new plan. I’ll be working diligently to make sure it gets a new track.

BMP met with the port a few weeks ago and laid out a new plan for a facility and they’re working with the port to identify property, and what activities will be there.

KPBJ: Why is this project important to you?

Mahan: BMP estimates they get 100,000 visitors a year coming to events at the track now and that can go up 10 times with a facility. Tourism is one of the big economic drivers on the Peninsula and this would probably be the largest tourism facility on the Kitsap Peninsula.

KPBJ: What’s your biggest regret about your political career?

Mahan: I wish the SEED project was successful. I blame myself for the fact it didn’t make it any further than it did. I didn’t follow it as closely as I should have

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To schedule a free inspection and estimate call:

and it became a very large project the port couldn’t build. If I was more involved in the development of the scale of the project, perhaps it would have been more successful. Now, other counties have picked up the ball for projects like this and they will attract clean technology companies that we won’t.

KPBJ: How were you able to handle the critics over all these years in three offices?

Mahan: The first thing you need in politics is a thick skin. You’re criticized constantly and you need to be able to handle that. If you let it get you down, you’re dead from the get-go. How I handle them is with truth and conviction — you can’t argue with reality so I had to be prepared and know more than the people on the other side, and be loaded with facts and get in their face.

KPBJ: What do you see as the biggest challenge for the port in the next few years?

Mahan: The biggest challenge during the next five years is maintaining a business in the recession. I’m convinced this recession will not be finished until 2012 or 2013 so keeping facilities leased and maintained will be a challenge.

KPBJ: Any unfulfilled dreams for the port’s future?

Mahan: I want to see air service between Bremerton and other cities. We

used to have service to SeaTac until about 10 years ago but since then, there has been no interest, and that would be the case in a recession. I believe the day will come when we will see an airline come to Bremerton Airport for direct service not to SeaTac but to other cities on the West Coast. The trick there is what do they want from the port to start a service like that — like hangar space, machinery to move things around. Right now, we couldn’t afford to put money into a service like that.

KPBJ: After such a long run, will you miss public service?

Mahan: It will always be in my blood.

But I will totally resist the urge to charge up and run for an office… I’m going to continue my effort to help this county grow.

My focus will be on nonprofit groups. I’m on the board of Paratransit Services, which employs 75 people, and will continue that involvement. I also have an interest in some other efforts like buying local and nonprofits that create jobs.

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Washington CASH announces four-hour business boot camp Orientation workshop for entrepreneurs who want to start-up or expand a business

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On Jan. 25 from 8 a.m. to 4:30 p.m. at the Suquamish Clearwater Casino Resort, Chico Room, Leadership Kitsap will hold its second annual leadership skill building event. Join other community leaders in a one day advanced training workshop “Building and Sustaining Effective Teams,” conducted by Greg Abell.

This seminar is designed to provide work teams skills and strategies to function more effectively. Combining organizational development theory, adult learning theory and conflict resolution theory, this workshop presents strategies that will enhance team performance and improve relationships.

This workshop is appropriate for mediators, attorneys, human resource professionals, social workers, and leaders who work in business, organizational, and community settings.

Participants will: • Learn a framework for understanding and assessing group development • Explore the role of leadership during different phases of group development • Gain effective communication skills • Explore effective decision making and how it relates to leadership • Develop shared expectations, core values, and shared vision

• Advantages of building and sustain effective teams Abell has served as a founding member and board president of the Kitsap County Dispute Resolution Center, president of the Washington Mediation Association, and senior consultant to the Consortium for Appropriate Dispute Resolution in Special Education (CADRE). He currently serves as a current Leadership Kitsap board of director.

The cost for the workshop is $145, space is limited and registration is required. Visit www.leadershipkitsap.org or call Kathy Nelson at (360) 782-1058 for more information or to register.

January 2010 Kitsap Peninsula Business Journal•KPBJ.com 5

Washington Community Alliance for Self-Help (CASH) is offering a free extended boot camp orientation for winter business development start-up classes, on Saturday, Jan. 8, at the Communitas Building, 920 Park Avenue in Bremerton, from 9:30 a.m. to 1 p.m.

The winter business development training classes begin on Tuesday, Jan. 11 and meet weekly for eight weeks at KCR, from 6-8:30 p.m. The training is free to low income households, and the only charge is $40 for the course workbook.

“This new extended orientation is intended to provide the basic background needed to succeed in developing their business,” said Stuart Walton, director of the Washington CASH program in Kitsap County. “The orientation is hands-on, including worksheets, class participation and presentations from successful Washington CASH program graduates, now owners of successful businesses,” Walton said.

Topics for the eight-week business training include learning how to start a business, from licenses, taxes, insurances to managing time. Class sessions also cover developing the business concept, sales and marketing, calculating the break-even point, learning cash flow techniques, developing pricing, preparing financial statements, designing sales and marketing plans. There is a strong focus on developing profit and loss statements and learning how to make a business profitable. Students in the training class will prepare an individual business feasibility plan.

Following graduation, students may apply for on-going business support training and apply for peer loans. More than fifty entrepreneurs participate in the business support program. “Our business support group program is the heart of the Washington CASH model,” Walton said.

“Our peer support program keeps our startup business owners engaged, involved and provides technical and moral support,” Walton continued. “It’s what makes this program so successful.”

Washington CASH, provides business training; supportive community and capital to help enterprising individuals with limited financial resources gain access to market and achieve self-sufficiency through small business ownership.

For program and pre-registration information, email stuart@washingtoncash.org, call (360) 698-4088 or (206) 914-4824, or visit www.washingtoncash.org.

Leadership Kitsap sponsors building and sustaining effective teams’ workshop

Liberty Bay Bank names new president and CEO

6 Kitsap Peninsula Business Journal•KPBJ.com January 2010

By Rodika Tollefson Rick Darrow has been named as the new president and CEO of Poulsbo-based Liberty Bay Bank. Darrow is a 25-year banking industry veteran who was previously involved with two startup banks.

His last position was at Bellevue Charter Bank, which he helped open in 1998 (the bank eventually was sold and renamed to Charter Private Bank).

“Many, but not all banks, today are struggling. It started in 2009, after all the meltdown (in the industry),” he said. “A lot of the banks are shrinking. With Liberty Bank, we have a tremendous opportunity to serve a community that other banks are trying to pull out of.”

A Washington native, Darrow grew up in Edmonds and had his first job, as a newspaper carrier, at age 12. He originally worked as a CPA when he decided to transition into private industry. His first bank job, in 1985, was in a management position, as a controller for a $1 billion bank.

“It was a wonderful time, there was a revolution in the industry because of the PC advent,” he said.

He said every community bank is different, and he sees Liberty Bay Bank as an institution that knows its clients well and can tailor service to their needs. He points out that the majority of the employees, as well as the board members and investors, are local, as are the deposits and loans made.

“People can even come in and talk to the president of the bank — this is not a faraway place,” he said. The bank, which is focused on business clients, is also unique in this area because its bankers can travel around to a business site to open accounts and perform other transactions.

“The challenging part is to get people to move deposits here,” he said. “We’re dedicated to making it as easy as possible to clients moving their accounts.”

Darrow has witnessed several mergers and acquisitions during his career and said that’s one of the realities of community banks that sometimes they have a short life.

“In a shrinking environment, larger regional banks can’t grow fast enough so they shop for (smaller) banks. In some ways, that’s not too bad if it’s a bank that’s not too big and is committed to the community…

As a community bank, when they’re approached, they have a responsibility to their shareholders,” he said.

He said he doesn’t anticipate this scenario for Liberty Bay because big banks looking for consolidation shop for deals, and a bank that’s in good financial health is less appealing.

“I’m a big believer in community banks,” he said. “We have an opportunity to build an independent organization.”

As the bank moves from the “de novo” phase and grows its products and services, he expects a culture shift. “A lot of changes will be happening in the organization and people I’ve spoken to are excited,” he said.

Although FDIC regulations prevent new banks from expanding new branches within a certain amount of time, looking to the future, Darrow said he anticipates Liberty Bay Bank moving in that direction and possibly adding a second location within the next five years.

“Expansion of branches will be very thoughtful and targeted, but first we need to expand delivery so it’s convenient to clients and to bring in new people,” he said. “We need to facility delivery of services so they don’t have to come in every day unless they want to.”

Alice Waggoner retires from Kitsap Bank after more than 30 years Kitsap Bank recently congratulated Alice Waggoner on her retirement after over 30 years of dedicated service. Waggoner began her career as a bookkeeper at Kitsap Bank’s South Park Village Branch in Port Orchard.

Waggoner with Kitsap Bank President and CEO, Jim Carmichael.

During her career, she also worked in the Bank’s South Kitsap Mall, Puget Sound Naval Shipyard and Silverdale branches. In April of 1997 she returned to her original branch in Port Orchard, serving as financial service representative there for the past 13 years.

“Alice has been a great asset to the company,” commented Jim Carmichael, Kitsap Bank president and CEO. “She will be truly missed by her customers and colleagues alike. We wish Alice a happy and prosperous retirement.”

Kitsap Credit Union champion to retire “The Ronster” calls it a career Rogerson leaves not only a distinguished career with the Credit Union, but a legacy of service to the Kitsap County community that spans more than 40 years.

Prior to joining Kitsap Credit Union, he worked for KBRO AM and FM radio, including station manager, and was the play-by-play voice of local high school sports for over 10 years. He has also been a local business owner and held key positions at two other area financial institutions.

He has also been a member of the Silverdale Rotary for more than 20 years, is

Kitsap Credit Union will wish a fond farewell to Ron Rogerson, its senior vice president and chief marketing officer on March 1. Rogerson announced his retirement after 14 years of championing the “People Helping People” philosophy on which the Credit Union movement was founded.

a former Olympic College Trustee, as well as past president of the Kitsap Mental Health Foundation Board of Directors and the Kitsap-Bremerton Athletic Roundtable.

In his official notice, Rogerson stated, “My over fourteen year tenure at Kitsap Credit Union has been the most gratifying, rewarding, exciting and fun experience of my over forty year professional career. Oh, what a fantastic ride it has been!”

Announcing Rogerson’s retirement to Credit Union employees, President/CEO Elliot Gregg shared, “The credit union you

see today: community engaged, highly visible, and confident in its future — is in great part a vision of Ron’s. Few credit unions have made such a successful transition from the traditional closedmembership institution to being a community leader. Ron’s sense of the importance of “brand” guided the transition of the credit union…The superb marketing team that Ron has assembled and led has given us award-winning campaigns. Ron, you leave us at the top of your game.

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Pictured are students Emerald Heights Elementary School For the second year in a row, on December 6-9, 2010, Silverdale Rotarians delivered a dictionary to every third grader in four Central Kitsap School District Elementary Schools: Esquire Hills, Silver Ridge, Pine Crest, and Emerald Heights. It was part of a partnership with East Bremerton Rotary and Silverdale Sunrise Rotary to provide a hard cover American Heritage Dictionary before Christmas. In all, 282 dictionaries were provided.

During the visits to the classrooms, several Rotarians delivered the American Heritage dictionaries into the hands of students, with teachers and staff members looking on. Then the label in each dictionary was discussed with students. It contains the “Rotary Four Way Test” which explains further the Rotary motto, "Service Above Self."

This community service project was funded by proceeds from the annual Great Kitsap Duck Race.

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Eagle Harbor Holdings forms partnership with Invotronics, Inc. Bainbridge Island’s Eagle Harbor Holdings, LLC (EHH) has announced that it has appointed Invotronics, Inc. as a manufacturer and distributor of products incorporating EHH's patented technologies related to the automotive industry. The exclusive partnership will provide a channel for the commercialization of EHH's Infotainment, Telematics and Autosar related patent portfolio and an expansion of the products and services available through Invotronics.

Dan Preston, EHH CEO, stated, "Our goal is to aid our customers by making our patented technologies available through reference designs, modules, and products that are both compatible with their existing products and designs and supportive of their future product strategies. We will accomplish this by working cooperatively throughout the automotive supply chain.

The bulk of our patent portfolio related to this manufacturing agreement has patent

priority dates of2001 and 2002 and is the result of more than 10 years of engineering development effort.”

Earl Hughson, CEO of Invotronics, stated, "We're excited about working with Eagle Harbor Holdings and having access to their patented technology. Our 20-year history as a proven supplier of quality products to the automotive industry, combined with EHH's engineering resources, will take the concept of in-

vehicle infotainment to a new level of sophistication. We have available and expandable production capacity for this venture, and have the ability to work anywhere in an OEM's supply chain. We can build existing designs with proprietary features, and can provide valuable systems engineering and design support. Together with EHH we'll be working on many innovations to add next generation features and functions to the infotainment arena.”

Blockbuster to close 182 stores by April

8 Kitsap Peninsula Business Journal•KPBJ.com January 2010

Bankrupt video rental chain Blockbuster Inc plans to close 182 stores by the end of Q1 as it tries to find a way back on its feet.

The largest U.S. video rental chain planned to close 72 stores by Jan. 1 and 110 more in the first quarter of 2011, according to documents filed in Manhattan's bankruptcy court.

Blockbuster filed for bankruptcy in September, weighed down by its debts and stung by video-on-demand and competitors such as mail-order pioneer Netflix Inc and Redbox Inc, a Coinstar Inc unit that rents movies through kiosks.

Blockbuster has closed about 1,000 stores in recent years as it tries to cut costs, but still had about 2,900 in the United States when it filed for bankruptcy.

The company is renegotiating leases with thousands of landlords, said Patricia Sullivan, a Blockbuster spokeswoman.

She said the company will emerge from bankruptcy by the beginning of the second quarter of next year, with fewer but more profitable stores.

The company entered bankruptcy with a plan that would put billionaire investor Carl Icahn and his hedge fund partners in control of the company when it emerges.

Expedia buys Mobiata, maker of popular iPhone travel apps Ann Arbor, Michigan-based Mobiata, a maker of mobile travel applications such as FlightTrack, FareCompare and HotelPal, has been sold to Expedia in a deal of undisclosed size.

TechFlash reports the acquisition will bolster Bellevue-based Expedia's mobile offerings at a time when more travelers are using smartphones and other portable devices to check flight times, fares and other information.

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Beatles finally available on iTunes Nearly 50 years after the Beatles took television by storm, the Fab Four's songs finally became available on iTunes, setting the stage for a possible new outbreak of Beatlemania — this one online.

After many a hard day's night of negotiations, Apple announced a deal to begin selling the Beatles' music by the song or the album. Until now, the biggest-selling, most influential group in rock history has been glaringly absent from iTunes and other legal online music services.

"The Beatles are one of those groups that parents and young people can kind of come together on, no pun intended," said Craig Marks, editor of Billboard magazine.

Within hours of their availability, eight Beatles recordings were at one point among the top 25 albums sold on iTunes, including a $149 boxed set at No. 13. The eight also included "Abbey Road," "The White Album" and "Sgt. Pepper's Lonely Hearts Club Band."

Apple would not release first-day sales figures or the number of Beatles albums or

singles downloaded. ITunes' top albums list is a fluid, real-time chart that changes several times throughout the day; the 25th album may sell only a few thousand copies in a week. It is unclear how big the Beatles could become on iTunes. After all, many Beatles fans already have copied the group's CDs to their iPods.

Forty years after the Beatles broke up, Apple is selling 13 remastered studio albums, the two-volume "Past Masters" set and the "Red" and "Blue" greatest-hits collections. People can buy individual songs for $1.29 apiece or download entire albums, at $12.99 for a single album and $19.99 for a double. Apple is also selling a special digital boxed set that includes all the albums and a download of the 41-minute movie of the Beatles' first U.S. concert, "Live at the Washington Coliseum, 1964."

Apple struck the agreement after on-andoff negotiations with the Beatles' recording label, EMI Group, and their management company, Apple Corps. Apple Corps had

Verizon, RIM invest in mobile security to protect phones from attack

For the music industry, the arrival of the Beatles for download might mean even less.

"The digital music market — and the young music fans record labels desperately need to get engaged — need new music products, not yesteryear's hits repackaged," said Mark Mulligan, a Forrester analyst.

Steve Gordon, a former Sony Music business executive and author of "The Future of the Music Business," said the Beatles-iTunes deal could generate as little as $5 million in the first year. "Sure, there'll be a preliminary burst of sales," he said. "If it's enough to bring the music industry back is another issue."

Younger fans may not buy Beatles albums, but that doesn't mean they're not listening. Glenn Gass, a professor of music at Indiana University, has seen enrollment grow in the Beatles course he has taught since 1982. He is now teaching children of baby boomers raised on the Beatles. "The Beatles are very approachable, accessible to kids," Gass said. "The melodies are so catchy. The songs have such personalities that an 8-year-old could love them."

Garth Brooks, Kid Rock and AC/DC are among the remaining major artists who refuse to sell their work through Apple.

Some want more control over prices or the ability to force shoppers to download entire albums instead of individual songs.

Steve Jobs, Apple's CEO, couldn't resist celebrating the Beatles' arrival with an obvious quip — "It has been a long and winding road to get here," he said.

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January 2010 Kitsap Peninsula Business Journal•KPBJ.com 9

By: Fahmida Y. Rashid, eWeek As people increase their use of smartphones to check e-mail, do their banking and access documents, the wireless industry is addressing mobile device security. There will be a "consumerization of IT," where more employees will be using their personal mobile devices, including smartphones, laptops and tablets, for work purposes, Chris Knotts, vice president of technology and innovation at IT technology consulting company Force 3, told eWEEK. IT administrators are reconciled to the fact that mobile devices are not going away, so they need to start thinking about securing the mobile devices against mobile attacks and data breaches, said Knotts.

The effort is not limited to IT administrators within the enterprises, as carriers and phone makers are deploying new features and services to bring security to the mobile devices, according to the Wall Street Journal.

"Everyone is realizing that this is an uncontrolled environment. We don't want to have the same problems that we had with PCs," Edward G. Amoroso, chief security officer of AT&T, told the Wall Street Journal.

Several security vendors have raised the alarm, predicting that various types of mobile threats will appear in 2011. Researchers at Panda Security said there will be new attacks on mobile devices, "but not on a massive scale," which will target Symbian- and Android-based phones.

In many cases, some of the security features are already available within the smartphone operating system, according to Knotts. For example, one of the most frequently touted mobile security features for preventing data breaches, remote wipe, is available in the latest version of the Android operating system, as well as for the BlackBerry and iPhone, he said.

The increasing number of consumer devices used within the enterprise will force companies to impose "common security controls" such as password policies, device locking, remote wipes and hardware encryption, said Andrew Jaquith, Perimeter e-Security's CTO. Some companies are already addressing those needs. Lookout, a mobile security provider, makes a free application for Android, BlackBerrys and Windows-based devices that allows consumers to remotely locate lost or stolen devices, back up the data and remotely erase all the information.

Lookout also blocks malicious applications and other mobile threats from reaching the phones.

The number uses for this application has jumped from 2 million in September to 4 million this month. The base version is available for free, but a premium version is also available for $3 a month.

The company recently appeared in a Verizon Wireless commercial and has a marketing and distribution partnership with the mobile phone carrier. With this partnership, Verizon can promote apps that customers can use to protect their phones.

AT&T has similar deals in place, with McAfee reselling its device management software as well as with startup MobileIron. "A phone is a computer, and you would not leave your personal PC unlocked in a public space," said Knotts. Getting users to add extra security steps is "a pain" and it's "unnatural," but behavioral change is necessary for the technology to be effective, he said.

Knotts said BlackBerry, as a business device, has always been security conscious, with features like built-in encryption. Research In Motion announced a free product called BlackBerry Protect in July that will let users back up their contacts and text messages, remotely locate or lock the BlackBerry, and perform a remote wipe. The software will also have a tool for IT administrators that will let them control what apps employees can download onto the phone, as well as the types of data that can be accessed, according to RIM.

resisted selling Beatles music on iTunes in part because of a long-running trademark dispute with Apple. The feud was resolved in 2007 when the companies agreed on joint use of the apple logo and name.

Even without digital sales, the band was making money. The Beatles have sold 600 million albums worldwide since the 1960s, and last year's remastered versions sold 18 million. Cirque du Soleil used Beatles music for the soundtrack to its "Love" show. And "The Beatles: Rock Band" video game came out last year.

In a statement, the two surviving Beatles — Paul McCartney and Ringo Starr — as well as Yoko Ono, John Lennon's widow, and Harrison's widow, Olivia, all gave the deal their blessing. "I am particularly glad to no longer be asked when the Beatles are coming to iTunes," Starr said.

The deal gives Apple a sweet public relations boost at the start of the holiday shopping season, but sales of Beatles music probably won't make much of a financial impact on the company. Brian Marshall, an analyst for Gleacher & Co., said he believes Beatles fans with iPods and other digital music players have already converted their CDs into digital tracks.

Even if people do rush to their computers for a "Yellow Submarine" fix, iTunes is not a big moneymaker for Apple compared with its other businesses. In the most recent quarter, Apple's revenue was $20.3 billion, and iTunes sales made up just 5 percent, Marshall said.

ASK THE COACH

10 Kitsap Peninsula Business Journal•KPBJ.com January 2010

A few ideas from the local pros to get you up and moving

By Rodika Tollefson No matter what time a year you start or revamp your fitness routine, time is always an issue and the number of excuses could easily make a “Top 100” list. From scheduling and motivation to discouragement, there are plenty of reasons to give up. We’ve asked some of the local personal trainers for ideas on how to get up and going with a fitness program — and keep it up once you’re there.

Kay Jensen, owner of Change of Heart Fitness on Bainbridge Island (www.changeofheartfitness.com) Q: What are your top two suggestions for people starting out or looking to revamp their program?

A: First of all, go for a walk. Absolutely do some reflective thinking on the walk on two or three things you’d like to change.

Write those down when you come back, then share them with a trusted friend so there’s accountability to someone else.

Commonly, the goals set are so huge, it feels overwhelming right out of the gate.

Take the two to three things you’ve identified and break them down into small steps. It’s been said that it takes 21 days to rewire a human brain toward a change — even walking for 10 minutes for 21 days is a good start… You have to remove “try” from your vocabulary and go into it with the absolute belief it will happen. If you’re going with a, “I’m going to try” attitude, you’re shooting yourself in the foot.

Lisa Cragg, personal trainer and fitness instructor at Bremerton Lisa Cragg Tennis & Athletic Club (www.bremertontennis.com) Q: What do you think keeps some people from starting?

A: There’s a big fear for some folks to walk in and join a gym. I know it’s scary and insecure but if you can work up the courage and sign up, and keep moving, soon you’ll see everybody’s working toward the same goal. It’s a hard step to take if you’re sedentary but if you just get in the door, there’s so many opportunities for you. The best thing you can do is start moving, even if it’s simple things like walking or taking stairs. …Once you’re exercising for a few months consistently, you’ll want to keep going back because your body will miss it.

Julie Cyr Julie Cyr, personal trainer at The Club at Gig Harbor (www.theclubatgigharbor.com)

Q: Motivation is often a challenge. What’s a good way to overcome it?

A: I think most sports psychologists have identified that motivation has to be for yourself, it can’t be for someone else. It’s also helpful to have a (workout) buddy, someone at a similar fitness level, so you can challenge, inspire and motivate each other. Also, keep it fun: If you don’t want to go on an elliptical machine but enjoy going for a run with friends, you should do that. Choose things that invigorate you. I personally, enjoy setting goals because it keeps things fresh and I’m challenging my body.

Janice Zabala, group fitness manager at Silverdale Fitness (www.silverdalefitness.com) Q: What tips to you have for keeping consistency?

A: Don’t worry about what the best workout is — the best workout is the one that fits in your lifestyle regularly. Choose a gym that’s close to your Janice Zabala home; the best exercise is the kind you can fit in your schedule. Schedule it in just like you would your doctor’s appointments and include time, place and what you will do. If you just write gym, 6 o’clock, you don’t have an obligation to go do it. Write down the machines, the type of workout you plan.

It’s really easy to push what we need to the back burner, so I tell people to make a deal with themselves to go for 20 minutes. If after 20 minutes, you still want to leave, that’s fine. Make a bargain with yourself.

Stephanie Smith, certified athletic trainer Stephanie Smith and general manager at Kingston Fitness (http://kingston-fitness.com) Q: What’s a common myth about fitness?

A: One of the biggest myths that bother me is that women will gain bulk if they do weight lifting. They’re afraid to do it because they think they’ll become too bulky. The more weight training they do, it increases bone density and muscle mass.

The more muscle mass you have, the higher your resting metabolism rate will be and you’ll burn more calories.

Jennifer Wiebusch, fitness training coordinator at Olympic Fitness in Port

Orchard (www.olyfitness.com) Q: How does a person know if the fitness plan is working?

A: You’re going to feel more energy, your mood will change. I ask people to give me two months — eight weeks — to get into the groove. Within two weeks, they tell me they’re feeling better and have more energy. You’ll see or feel results within the

first month: muscle tear, better clothes fit.

The scale is not an indication of weight loss, but lean muscle changes are.

If people want to figure out a plan, we help them design it. Willpower only goes so far and it always gives out, because we get pulled by work stresses, family, life. (With a good plan), when emotional things happen, they don’t have to depend on willpower.

Martha & Mary brings together two home care agencies With the combination of Abiding Home Care and Angel Advocates, Martha & Mary AT HOME draws upon a century of quality care delivery experience with a corps of trained caregivers that are devoted to providing assistance that enhances the quality of life for clients.

“The common values of the companies involved are really the driving force behind the acquisition of Abiding Home Care,” said Chad Solvie, Martha & Mary CEO. “Randy Hardin, founder of Abiding Home Care, has approached the delivery of non-medical, home based services with a passion and commitment that resonates with the principles of Martha & Mary.”

“Martha & Mary AT HOME will continue to help individuals maintain their personal independence and provide peace of mind to their family” stated Hardin. “We will build on Martha & Mary’s long-standing reputation of compassionate, high-quality service; and with their resources and experience, will offer more options and higher levels of care and expanded options to those in our community.”

“We will continue to provide the high caliber of care and caregivers that clients of both Abiding Home Care and Angel Advocates have come to expect” said Jan DeMars, administrator. “Both Randy Hardin and I will continue to provide the leadership and the heart that our clients deserve.”

Martha & Mary AT HOME has 110 caregivers serving clients in Kitsap, Pierce, Mason and Jefferson counties. For more information, contact an office at the following numbers: Bainbridge Island (206) 842-4527, Port Ludlow (360) 390-4199, Port Orchard (360) 8714425, or toll-free (877) 266-2856.

Olympic Surgical announces Dr. Boyden’s re-certification Olympic Surgical announces the re-certification of Dr. Derek Boyden by the American Board of Oral and Maxillofacial Surgery. Dr. Boyden specializes in surgery of the face, jaw, neck and mouth, reconstructive and comprehensive facial cosmetic surgery.

Located in Gig Harbor, across the parking lot from Harbor Greens, at 5201 Olympic Drive NW, Suite 140, Olympic Surgical serves the entire Kitsap Peninsula – from Gig Harbor to North Kitsap.

Reach Dr. Boyden at (253) 858-2408 or www.olympicsurgical.com.

New cardiac catherization procedures take radial approach

By Rodika Tollefson Traditionally, procedures that require heart catheters for cardio patients have required a long waiting period afterward, which brought both discomfort and potential for bleeding. Physicians in Europe have long been using the radial vein (located in the wrist) — instead of the femoral, or groin vein — which allows patients to get up and walk within short minutes of the procedure. The radial

approach also has less likelihood of complications and bleeding.

Physicians in the United States have been adopting the procedure more in the past few years, and some cardiologists are using it now at Harrison Medical Center.

Christopher Johnson, MD, a cardiologist with Kitsap Cardiology Consultants, said the procedure could be used for almost all patients, though currently it’s not used as much in acute

The Doctors Clinic implements new patient portal

By Rodika Tollefson The Doctors Clinic will introduce a patient portal at the beginning of 2011 that will allow them to view their medical records, request appointments, referrals and prescription refills, as well as email their physicians. Patients will be able to review their medical summary and health conditions, lab results, immunization records and other details; online bill payment will also be offered. They will be able to save that information on a flash drive or print it out to share with other physicians on their team.

The portal is the next step in The Doctors Clinic’s adoption of electronic health records.

The organization introduced EHR at its first site, the women’s clinic, in July 2008, with the last implementation phase finished at the end of 2010.

“The portal’s goal is multipurpose — it’s convenient for patients and it’s a more efficient way for us to deliver health care,” said Brennan Dobbins, director for clinical and ancillary services.

She said once the portal is launched, in several months it will be expanded to include online registration and health history forms that patients can complete at home prior to their visits. “It will be presented to us so we can review it, and at the push of a button we can approve it going into the chart,” Dobbins said.

The program used by The Doctors Clinic was developed by Sage Software Healthcare Inc. Through a secure login, it gives patients real-time information and could eliminate many telephone inquiries for common requests. The portal will be integrated with the organization’s EHR system.

The email messages sent by patients will be triaged in the same way phone calls are, usually through a nurse, though some physicians prefer to receive their own messages. Some physicians are also already using secure email to communicate with their patients.

The practice plans to continue offering “offline” requests for those patients who are not comfortable using the Internet. Dobbins said the portal could be especially effective for monitoring patients with conditions such as diabetes or high blood pressure.

“I think in the future you’ll see this as a mechanism for becoming more efficient in health care,” Dobbins said.

Weight Watchers program overhaul emphasizes fruits, veggies

where he saw presentations on the radial technique, one patient in Europe was able to get up from the table and walk to the recovery area after a very complicated procedure for both right and left arteries that have been blocked for several weeks.

“To think of doing that with a femoral artery would be a mistake,” he said.

The new cardiovascular center at Harrison has allowed for the radial approach to be used more easily thanks to the collection of equipment in the catherization lab. The technique, which could also be used for interventional procedures, could entail some cost-savings because of the reduced patient recovery and staff time, as well as the fact that closure devices frequently used for the groin are not needed.

“Patients are asking for it more and more,” Johnson said. “As time goes on, we apply it to more and more patient groups.”

EKCO joins with KCS to help cancer patients EKCO (previously the Elmo Zumwalt III Guild) has joined together with Kitsap Cancer Services (KCS) to help cancer patients and their families in need, who reside in the West Sound Region. KCS is dedicated to providing life enhancing support services and education, to increase emotional well-being in people affected by cancer. All services are offered at no cost to cancer patients, their family members, friends, and caregivers.

Kitsap Cancer Services, along with the Silverdale Sunrise Rotary Club, will host the annual "Sweetheart Dinner Auction" Feb. 5 at the Harborside Convention Center in Bremerton.

More information about Kitsap Cancer Services and the auction can be found at www.kitsapcancerservices.org.

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January 2010 Kitsap Peninsula Business Journal•KPBJ.com 11

Weight Watchers has overhauled its POINTS programs, making the first major change in a decade. The new weight-loss program, called PointsPlus, no longer counts calories but instead calculates food values based on carbohydrates, fat, fiber and protein (protein is also a new aspect).

According to Weight Watchers International officials, the new program is designed to educate and encourage people to make choices that favor foods the body works harder to convert into energy, resulting in fewer net calories absorbed; focus on foods that create a sense of fullness and satisfaction and are more healthful; nudge toward natural foods rather than foods with excess added sugars and fats; and still allow flexibility for indulgences, special occasions and eating out.

In addition to the new formula, foods that are low in energy density and more highly satisfying are emphasized; all fresh fruits and most vegetables now have zero PointsPlus values.

“This is the most significant change in 13 years. (The program) was pretty much calorie-based before and that’s outlived its usefulness,” said Debbie Culberson, Weight Watchers leader for several groups that meet in Kitsap. “The body doesn’t process calories the same way for an apple or a bag of chips.”

The new program was first introduced in Europe and Australia and was rolled out in the United States late this fall. It addition to calculating food points, it considers physical activities and also provides support in the form of groups that meet locally every week and a variety of information online.

“This reflects the science we know today but it doesn’t take a singular approach many diets do,” Culberson said. “…Exercise is a component of the program; however, we’re trying to keep it simplified.”

Culberson said the changes have been well-received with members, especially since they are encouraging a healthier approach. “For members still trying to lose weight, it’s causing a refocus and it’s taking them a little out of the comfort zone, but it’s a good change,” she said. “It’s nudging them away from processed foods… and encouraging a little bit to use more protein and fiber…

Members are pretty excited about it.”

For more information about Weight Watchers, go to www.weightwatchers.com.

cases. “That will change as physicians do (the procedure) more and more,” he said.

Johnson has been using the radial approach occasionally for a few years but last year he decided to focus on it more. “It’s a patient comfort issue and patient risk issue,” he said. “The advantage is that the bleeding complication rate is exceptionally low — bleeding is the Achilles’ hill of the femoral approach.”

The downside of the radial procedures is their success rate. With femoral catherization, the procedural success rate is about 96 percent, vs. 83 for radial; the access failure rate is virtually zero for the groin and about 2 percent for radial. The radial approach also adds as much as four minutes to the catherization procedure, though the more physicians perform these, the faster they become.

Johnson said during one of the meetings

Renowned Port Orchard nutritionist focuses on “the art of food and spirit”

12 Kitsap Peninsula Business Journal•KPBJ.com January 2010

By Rodika Tollefson Deanna Minich grew up in a Catholic family with a mother who was a “health nut.” This was in the 1970s — long before organic foods became a trend and eating healthy became a cultural emphasis.

“In the ‘70s it wasn’t ‘cool’ to be a health nut. I couldn’t stand the healthy dishes she made but she planted a seed,” Minich says.

That upbringing inspired her to go into the medical field, but in short order Minich realized she wasn’t satisfied with the focus on treating symptoms instead of prevention.

“I thought, how come what we eat doesn’t translate into health?... So I followed

into my mom’s footsteps but I took the academic route,” Minich says.

Minich, a clinical nutritionist who has a doctorate in nutrition from the University of Groningen in the Netherlands and a Master of Science degree from the University of Illinois, has developed a unique approach to nutrition in her 15-plus years in the field.

Using her background and study of biochemistry, yoga, guided imagery, Reiki, shamanic healing practices and other complementary medicine techniques, she has adopted an approach to nutrition that focuses on food as an art and an act that has emotional and spiritual connections.

She believes food goes beyond physical nourishment to become part of a person’s mind and emotions, further connect humans with the environment and the Earth, and to serve as a way of providing personal growth and fulfillment.

“The truth (about food) is not just in a study, it goes beyond, into things we can’t measure,” Minich says. “…There are emotional issues and patterns related to thought.

What I’m doing is acknowledging food is more than calories, and taking a mind, body, spirit approach.”

Minich has worked with patients in private practice for several years and says she has observed first-hand people healing themselves by using the mind/spirit/body approach once she helped them look for the underlying issues of eating. While she no longer has the practice — for the past eight years, she has been busy working at Gig Harbor-based Metagenics as a nutritionist and vice

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president of R&D communications — she continues to educate others using an integrative approach.

Known internationally, Minich has been interviewed on television and radio shows all around the country and featured in magazines such as Psychology Today and Natural Health. While she’s no longer seeing private patients, she continues to coach and educate people about nutrition through classes and workshops, including as a frequent presenter at Harmony Hill Cancer Retreat Center in Union. She also gives lectures to physicians as part of her Metagenics work.

“In the long run, what makes people successful is to understand their bodies,” she says.

She has published four books on the subjects of nutrition and supplements. The most recent one, released this past December, is called “The Complete Handbook of Quantum Healing: An A-Z Self-Healing Guide for Over 100 Common Ailments.” She writes in her introduction: “The complexity of the body is emerging. Rather than being a series of biochemical pathways, the body is now being viewed as an interrelated web of genes, proteins, pathways and messengers.

We now know that medicine doesn’t work in silos…”

It’s this kind of multifaceted approach that Minich believes will help change the future of health care. “I see nutrition more as a network of fields, more integrative versus silos… When there are ways to effectively integrate nutrigenomics into medicine, that will be truly personalized medicine,” she says.

Nutrigenomics is an emerging science that looks at the molecular-level interaction between nutrients with the genome and how nutrition could be used to treat diseases. Although the research is still new and there are limited tools, Minich feels it’s one of the new fields that will help medicine move beyond traditional approaches that focus on treating symptoms.

“Seventy percent of the U.S. population is overweight or obese. There are even theories that infections are connected with obesity,” she says. “There are huge implications for medicine — we have disease care, not health care, and we need to get it to preventative care.”

Body/mind/spirit approach to nutrition Minich looks at energy centers in the body, called chakras, when she talks about “quantum healing” (which is based on the idea of making small changes that produce large, radiant results). The main chakras are: root (body), sacral (emotions), solar plexus (mind), heart (love), throat (expression), third eye (imagination) and crown (connection); each has specific

actions, colors and nutrients associated with it.

Based on those main energy centers, Minich offers these basic tips: Accept/love your body: Try to sense what the body needs and be instinctual about eating. One way to connect with the body is by doing physical activity like dancing or jumping.

Express emotions: Emotions that are not expressed can manifest themselves in cravings. Emotions can be expressed in a variety of ways, including writing in a journal, cooking, dancing, lighting candles.

Live balanced: Lack of balance (including irregular eating) can create digestive issues.

Be compassionate: Love creates a flow of healing energy. Food can be used to show love and to create a healing heart as well.

Speak your truth: If you don’t know your truth (beliefs), you get bombarded with messages from the outside Open your imagination/intuition: Follow your internal visions and dreams, listen to your own wisdom.

Connect: Make a connection with yourself, your family and community, your planet. You can connect with your food supply, for example, by having a garden or shopping at farmers markets.

One of Minich’s books, “Chakra Foods for Optimum Health,” explores the connection between the chakras and foods and gives tips on how to improve energy and develop balance. She says in the book: “One of the ways to come to (a) place of balance is to get in touch with the soul needs; this can be done through working with the chakra system. Foods can take us to the realm of heightened energy, glowing health and vibrancy by feeding the energetic layers of the chakras.”

Minich offers tips through an e-newsletter and on her Facebook page. For more information, go to www.foodandspirit.com.

BEYOND THE FOAM:

Eco-friendly food containers gain local ground

By Rodika Tollefson When John Strasinger opened doors to his Bay Street Bistro in downtown Port Orchard this past July, one decision for his new enterprise was easy: the type of takeout containers to use. Strasinger knew from the beginning he wasn’t going to go with foam-made.

“For me, it was a no-brainer. It never crossed my mind to use Styrofoam,” he says.

In addition to compostable paper containers for takeout, Strasinger uses compostable utensils made of plant fibers.

He was inspired to look for alternatives when he worked at Pike Brewing Co. in Seattle during its transition to compostable containers. He has talked to many Seattle area restaurant owners and heard the same thing: They didn’t see a reason why they didn’t switch earlier.

Now, Strasinger wants to do even more.

Sometimes at the beginning of this year, he plans to start composting the restaurant’s food scraps, thanks to a local farm.

“…I feel I’m not doing anything out of the ordinary — for me, it’s a natural way of doing business.”

It may not be a natural way of doing business for many restaurants, but ecofriendly containers are catching up in popularity. Locally, several establishments are using alternatives to plastic and foam as part of their strategies for being more environmentally conscious.

“It was something that was important to us from the very beginning,” says Amy IgloiMatsuno, owner with husband, Grant, of Amy’s on the Bay in Port Orchard. “We knew we couldn’t be a green restaurant if we didn’t do it right.”

Amy’s uses a 100 percent recycled product called Bio-Plus EARTH, which is endorsed by the Green Restaurant Association. The containers are part of the restaurant’s efforts to be green. They also recycle the cooking oil (for biodiesel), use eco-friendly sanitizers and detergents, and recently set up new recycle bins for plastic, glass and paper.

When is it time for Hospice?

Hospice brings compassion, dignity and hope to people nearing life’s end

locations. Tony D’Onofrio, sustainability coordinator for the company, says they started the transition in the summer of 2008, and continue to look for new, better compostable products. Currently used containers are made of wheat byproducts but they planned to switch to a new line in 2011 made of a cellulose material. The compostables are used at the salad and hotfoods bar (including hot and cold drink cups) and the pizzeria (in Poulsbo), and any used containers are taken to EMU Topsoil and Composting in Poulsbo.

“We’re trying to avoid waste from going into the landfill,” he says.

Town & Country’s current diversion rate is 85 percent (including all recycled materials and products). “Seventy percent is a good diversion rate for the industry so 85 percent is phenomenal,” D’Onofrio says, adding that his personal goal is 90 percent. “I think of environmental stewardship as a continuous goal, like quality. It’s not something you’ll check off a list and move on,” he says.

D’Onofrio estimates that it only costs about 10 percent more now to use compostable products, thanks to growing demand (generated, in part, by bans such as those in Seattle). “As more and more folks are making the change, the costs are coming down because of the economies of scale,” he says.

Those economies of scale have certainly helped Harrison Medical Center. The healthcare organization has tried to make a switch from foam a couple of years ago for a few months, but the $60,000 a year added cost proved too much for a nonprofit trying to rein in costs during tough economic times. But costs have come down since then, and about a year ago, Harrison swapped all its foam and plastic containers and utensils in food service for a product made of sugarcane.

“We watched the market to see what would come out. As more and more people switched, it drove the demand,” says Jim Alvarez, director of dietary services at Harrison. It still costs an extra $30,000 a year but he says that cost was much more bearable and the administration realizes the organization has a “responsibility to the environment and community.”

For small restaurants like Bay Street Bistro, being more environmentally responsible is also becoming easier.

Strasinger buys his containers locally, at Cash & Carry, a warehouse chain that provides products for the food industry that has a location in Bremerton. According to a store representative, the warehouse has been offering some “bioboxes” for a few years but within the last couple of years, the compostable product lines have expanded to include boxes, plates and PLA utensils and the prices are becoming more competitive.

“It’s definitely affordable, especially if you use the simpler containers,” Strasinger says. “It’s a shame more people don’t use them.”

January 2010 Kitsap Peninsula Business Journal•KPBJ.com 13

For some people living with a life-limiting illness, there comes a point when cure is no longer possible.

While the possibility of a cure is gone that does not mean a patient and family must abandon all hope.

Through hospice care, there is still hope for a peaceful death; hope to spend final months, weeks or days free of pain; and hope for quality time with loved ones in the familiar surroundings of home.

“While there isn’t one specific point in an illness when a person should ask about hospice care, many hospice professionals would suggest that a person think about hospice long before he or she is in a medical crisis,” advises J. Donald Schumacher, president and CEO of the National Hospice and Palliative Care Organization (NHPCO). “In fact, learning about palliative care and hospice as options is something that should happen early in the course of a serious illness and not just in the final days.”

Hospices utilize a team of professionals and trained volunteers to provide expert medical care, pain-and-symptom management, and emotional and spiritual support to patients and family caregivers. All care is tailored to the patient’s needs and wishes.

Hospice helps patients and families focus on living as fully as possible.

“Hospice professionals can be important resources for patients and families, they can help a person figure out what goals are important and help them get their arms around the fact that their life may be coming to a close,” noted Schumacher.

Considered to be the model for high-quality, compassionate care for people nearing the end of life, hospice offers the services and support that Americans want when coping with life-limiting illness.

Last year, hospice cared for more than 1.56 million patients in the US. NHPCO estimates that 41.6 percent of all deaths in the US were under the care of a hospice program last year.

Facts about hospice: • Most hospice care is provided in the home. Care is also provided in nursing homes, assisted living facilities, and hospice centers.

• Hospice care is fully covered by Medicare, private insurance, and by Medicaid in most states.

• Hospice care is not just for people with cancer. Hospices serve those with advanced Alzheimer’s disease, heart disease, lung disease, HIV/AIDS – anyone who is facing a lifelimiting illness.

• The hospice benefit pays for medications and medical equipment related to the illness.

• Hospice care is available as long as a doctor believes the patient is eligible.

• Hospice care can include complementary therapies, such as music and art, to bring additional comfort.

• Hospice’s offer grief support to the family following the death of a loved one.

“Ideally, an individual would receive hospice care for the final months of life – not just the final days,” stated Schumacher. “One of the most common sentiments from families who have been helped by hospice care is that they wish they had known about hospice or been referred to hospice sooner.”

A recent report from the Dartmouth Atlas Project www.dartmouthatlas.org looking at care for patients with advanced cancer at the end of life identified gaps between patient wishes and care received. This highlights the need for people to learn about all options available for care.

Additional research published in the Journal of Pain and Symptom Management www.nhpco.org/files/public/JPSM/march-2007-article.pdf found that Medicare beneficiaries who received hospice care lived on average 29 days longer than those who did not opt for hospice near the end of life.

For more information, contact Hospice of Kitsap County at (360) 698-4611.

“You read a lot about what’s happening with Styrofoam in the landfill. It didn’t even cross our minds we’d use it, no matter the cost,” Matsuno says.

Matt Carter, owner of Carter’s Chocolates in Port Orchard, shares the same philosophy. He says cost didn’t come into factor when he decided to use compostable containers for his chocolate shop. He’s been using compostable boxes and bags, along with cups made of PLA (polylactic acid made from corn, tapioca or sugarcane), since opening. He says there’s some downside — the packaging is less attractive than the traditional boxes, but it’s worth the tradeoff.

Asked why, he says it’s for the same reason he doesn’t buy bulk chocolate, opting instead for more expensive single-origin or directly sourced chocolate. “I want my business to impact the world in a positive way and I don’t want to contribute to the problems,” he says.

A growing trend Polystyrene foam (also known as EPS), commonly called Styrofoam (which is actually a brand name), has Styrene as a basic building block. Used extensively in the manufacturing of rubber, plastics and resins, Styrene has been associated with a variety of chronic or acute conditions and is a suspected carcinogen. Chemicals utilized in the manufacturing of the foams have also been leaching into the environment and are considered major pollutants.

Not all foam alternatives are created equal. Some are made of 100 percent recycled contents. Some are recyclable — but whether or no they can be recycled depends on individual waste-management companies because some recycle woodwaste containers and others do not. Some containers are labeled as biodegradable, which means they will break down naturally and completely over a certain period of time.

The compostable ones, while biodegradable, go one step further, and can be turned into compost at a commercial facility (and possibly in someone’s yard).

“The problem with the (plastic alternatives like PLA) is they’re supposed to be composted at a commercial composting facility, but it’s still better than using regular plastic,” Carter says.

Eco-trending cities like Portland, Ore. — and now, Seattle — have taken drastic steps to reduce the use of EPS and plastics. In 2009, the city of Seattle implemented a twophase ban on disposable food containers and plastics like utensils. The first phase, effective in July 2009, banned food-service companies from using foam. The second phase, effective in July 2010, required all one-time-use products to be replaced with something either compostable or recyclable.

An exception was made in the ordinance for disposable utensils, straws and a few other products — but only through July 2011.

Locally-based small grocery chain Town & Country Markets Inc., which includes Town & Country Market on Bainbridge Island and Central Market in Poulsbo, has been using Seattle rule’s as a guide for all its

NEW YEAR, NEW YOU

Starting 2011 on the right (exercise) foot

By Rodika Tollefson Getting into shape may be one of the top all-time New Year’s resolutions, since many people like making goals for a better year.

But as fast as gym memberships soar in January, by spring they dwindle, and the months tick on while those resolutions list get buried deeper under a pile of excuses.

“When the New Year comes around, there’s lots of campaigns about reinventing and starting over. I personally believe it’s something that should be done throughout the year,” says Julie Cyr, personal trainer for three years who is currently at The Club at Gig Harbor. “Just starting out (a fitness program) is the key point — not only start but make a commitment to yourself to continue through that initial start.”

She says the key to keeping it up is setting small goals and being realistic. Even a small change like a 10-minute walk after dinner can be used to jumpstart a routine.

“Set small goals and have small victories.

Ultimately people need to have successes to stay motivated,” she says, “otherwise they experience disappointment and failure.”

Inspired by reality television shows like “The Biggest Loser” and used to instant gratification, some people throw in the towel after a month or two. But, trainers warn, instant results don’t work when you’re looking for lifetime lifestyle changes.

Janice Zabala, group fitness manager at Silverdale Fitness who has been a personal trainer for seven years, says a lot of time people are compelled to buy a seven-minute ab-workout tape or try some other

promising spot-reducing or easy, fast-results idea. The human body, however, doesn’t work that way.

“Your body will decide where the fat will leave,” she says. “Spot reducing doesn’t work.”

She suggests people start out with some guidance, whether that’s from a fitness tape, book or personal trainer. Personal trainers can especially be a great resource for setting up a well-rounded workout, avoiding injuries and knowing how to properly use the equipment.

“Personal trainers benefit different people in different ways… It’s about what you personally need,” she says.

A personal trainer can also help change up the program to ensure there’s consistent progress. “I’m an advocate for people switching things up. The body adapts if you’re not stimulating it,” says Stephanie Smith, a certified athletic trainer for 15 years who is the general manager at Kingston Fitness and marketing director at Kitsap Physical Therapy. “Change your routine every four to six weeks… For cardiovascular (exercise), I like to have a long walk, jog or swim and increase the heart rate intermittently in short bursts, which stimulates the body to lose weight.”

Switching things up also helps with motivation, she says. So does keeping things fun, or trying something new.

Lisa Cragg, who’s worked as a fitness instructor and personal trainer at Bremerton Tennis & Athletic Club for five years, says working out with a partner or a

14 Kitsap Peninsula Business Journal•KPBJ.com January 2010

Martha & Mary receive zero-deficiency survey rating Martha & Mary Health and Rehab Center received zero deficiencies in its recent annual state survey. It is extremely uncommon for a facility the size of Martha & Mary to achieve a perfect score from the exhaustive quality inspection. In fact, only about five percent of the skilled nursing facilities nationally receive such a score.

This unannounced inspection was conducted by five surveyors (all registered nurses) from the Department of Social and Health Services (DSHS). The State conducts inspections in each nursing home that participates in the Medicare and/or Medicaid programs on average about once a year.

There are over 150 regulatory standards that nursing homes must meet at all times. These standards are implemented to protect individuals receiving care and services in a skilled nursing facility (SNF). Inspectors use an established protocol covering a broad range of topics including: management of medications, protection of residents and patients from all forms of abuse, quality of food and bedside care, staffing levels and satisfaction of residents and their families. Inspectors not only review residents’ clinical records, but observe interactions and also interview residents and family members about their experiences in the facility.

When an inspection team finds that a SNF does not meet a specific regulation it issues a deficiency. Failure to meet requirements may include a range of consequences including revisits, fines and/or termination of license. A zero-deficiency score reflects quality assurance and confidence in service.

Administrator Holly Shepherd added, “A zero-deficiency survey does not suggest perfection, but it is a special achievement – one that recognizes the tremendous amount of coordination, quality assurance, skill and heart that contributes to the care provided to those we serve. We spend a lot of energy and resources adapting in a complex environment and to earn a deficiency-free survey is like hearing, ‘You’re on the right path. Job well done.’ Hearing that from DSHS is a great feeling and one we won’t take for granted.”

personal trainer could help with a consistent routine because that keeps the person accountable. She says often time people don’t go to the gym or a class because they’re running late or short on time, but showing up for 10 minutes is better than not doing anything.

“At least 30 minutes every day is optimal and I encourage my clients to do it every day — however, do whatever you can do, do your very best and keep moving,” she says.

Living in a society where overcommitment is the norm forces people to prioritize and that could mean putting exercise at the bottom of the list. That’s why many trainers recommend scheduling that activity in the morning, since at the end of the day other things are more likely to get in the way. But whatever your schedule, it’s important to pencil it in (or better yet, use ink).

“Protect the time for you. You must plan it, must create it,” says Jennifer Wiebusch, fitness training coordinator who has worked at Olympic Fitness for more than 20 years. She says lack of time is a major factor when it comes to motivation and everyone is busy, so you have to protect your own time by including exercise in the planner, aiming for one hour a day, three to four times a week for starters.

“If you plan for yourself, it’s not being selfish, it’s self-preservation,” she says.

“Your mind, your body and your inner person all have to be fit; exercise is only one component.”

Nutrition is another major component.

Zabala says a person could work out three hours a day, and all that effort goes out the window without the proper eating habits.

“Eating right is huge,” she says. “The way you eat is going to be 80 percent of your body’s look; 10 percent is the way you work out and 10 percent is genetics.”

Kay Jensen, personal trainer who owns Change of Heart Fitness on Bainbridge Island, likes to surround herself with motivating article clippings, photos of people who inspire her and motivational quotes. One of her favorite quotes is, “What are you waiting for?”

“That’s a huge question — there’s so many reasons we won’t fit exercise in, but in the final analysis, what are you waiting for?” she says. “…The motivation comes from constant reminders and deciding you’re going to do this for yourself.”

The bottom line, take a page from the wisdom of Nike: Just do it. “It’s never too late to become who you want to be. Set your goals and go for it,” Smith says. “Especially with health care costs the way they are, we need to take care of ourselves and help prevent disease.”

Jim Page named president of KPS Health Plans Page to replace Richard Marks who will leave at the end of January Jim Page, a long time KPS employee and CFO, will become the new president of KPS Health Plans on Feb. 1, 2011. Page will be succeeding Richard Marks, who announced this week he is stepping down on Jan. 31.

“KPS is on good footing and Jim Page can help take the organization to the next level,” stated Marks. “We have forged a closer working relationship with our parent company, Group Health, and have adapted the company to meet the needs of the changing health insurance marketplace.

“During his tenure, Richard helped position KPS to better focus on and serve the needs of its customers, specifically KPS’s large clients and federal employees,” stated Rick Woods, chairman of the KPS board of directors and Group Health executive vice president and general counsel. “We are pleased to see the board appoint a well respected community member and long time employee like Jim Page to take the reins and lead KPS.” Marks believes this is a natural progression of management change and approves the KPS Board’s choice of Page. “Jim has a strong relationship with the company, its people and the community KPS serves. It will be in good hands,” states Marks.

Page has worked in several capacities during his 20-year career with the 65-year-old health care company. He has served as CFO since 2006. An established, effective leader, Page has lead several strategic initiatives and currently serves on the Transition Steering Committee.

A Kitsap County native, Page has strong community ties including currently serving on the boards of the Hospice of Kitsap County and the YMCA Foundation.

Harrison nurse honored by March of Dimes orientation, nursing skills and other classes for nurses. She has developed an online learning program with activities and is a member of several committees that focus on care and nurse practices. She also teaches a coaching class for the Harrison Leadership Development Program and has mentored several new managers and clinical educators.

She was nominated by her supervisors, and her nomination letter read, in part: “Her passion for enhancing the image of nursing and research is evident every day.

By her example, many of her colleagues

have obtained further certification, degrees, and seek her out for advise on educational opportunities and publishing.

Orn said she wanted to be a nurse since she was five years old. She worked as an ICU nurse for 24 years, including six years at Harrison in that role. She has a Master of Science degree in nursing with an emphasis in health care leadership and focus on management, as well as a post certificate in nursing in health care leadership with a focus on education. She is currently pursuing a doctorate in nursing practice and her capstone project will focus on bringing

evidence-based practice to the patient bedside.

She said helping advance the nursing practice in order to give evidence-based care to patients has been the best part of her career. “Nurses are so busy with their work and so challenged with getting everything done, they don’t have time for research or looking at best practices. I want to put a mode in place to make that easier,” she said.

The March of Dimes recognition is a great honor for her, Orn said. “In nursing, we don’t honor each other often,” she said.

“It makes me more motivate to do more.”

Harrison Medical Center’s Margaret Orn was one of 14 nurses recently recognized b the March of Dimes Washington Chapter. Orn was honored as the winner in the category of research/advancing the profession at the eighth annual Western Washington Nurse of the Year Awards that was hosted at the Meydenbauer Conference Center.

The program recognizes nursing professionals who set the standards for outstanding patient care.

Orn joined Harrison in 1997 and for more than three years has been working as the education coordinator teaching

Prostate cancer education event on Bainbridge

Harrison launches new cardiovascular services website Harrison Medical Center recently launched a new website full of information and resources about cardiovascular disease, treatments, services, quality and more to complement the 2010 opening of the Heart & Vascular Center at Harrison.

The site provides helpful links, details about Harrison's heart program and quality, information about local doctors, maps to Harrison locations, community resources and inspiring patient stories.

To learn about Harrison's team of heart specialists, award-winning cardiac surgery program, fast (and lifesaving) door-toballoon times and electrophysiology program — the only one of its kind west of the Puget Sound — visit www.harrisonmedical.org/cardiovascular.

January 2010 Kitsap Peninsula Business Journal•KPBJ.com 15

Harrison Medical Center will host a free education event at which medical oncologist Dennis Willerford, MD, radiation oncologist R. Alex Hsi, MD, and urologist/surgeon Marc Mitchell, DO, will give presentations and answer questions about prostate cancer, risks, treatments and advances in oncology care. Refreshments will be provided.

The event is Tuesday, Jan. 18, 6:30 to 8 p.m. at Bainbridge Commons, 370 Brien Drive SE, Bainbridge Island. RSVP requested, call 360-744-6926 or email gloria.worland@harrisonmedical.org.

To learn more about Harrison's oncology services, visit www.harrisonmedical.org/oncology.

Be prepared for early – and possibly unwanted – retirement

By Calvin Christensen Given the economic climate we’re in, you may one day be faced with a downsizing or otherwise forced to retire earlier than you had planned. But even if that happens, you can still maintain control of your financial future — if you make the right moves.

Unfortunately, many of us are ill prepared for events such as forced early retirement. In 2009, more people filed for Social Security than any year in history, with a big increase in the number receiving reduced benefits because they filed before their full retirement age. And they paid a heavy price, too — 62-year-old workers who filed for benefits early lost about 25 percent of their monthly benefits over waiting until their “full” retirement age of 66, according to the Social Security Administration.

Of course, if you are forced to take an early retirement, you, too, may need to tap into your Social Security earlier than you planned. But that’s just the beginning — you might also need to start withdrawals from your IRA and your 401(k) or other employer-sponsored retirement plan, even though you had planned on leaving those accounts intact for a few more years. And that’s why you won’t want to wait until early retirement is thrust upon you before taking

action. While you’re still working, consider these steps: Boost your contributions to retirement plans. Put as much as you can possibly afford into your 401(k) or other employer-sponsored plan. Every time your salary goes up, try to increase the amount you contribute to your retirement plan.

Also, contribute regularly to your traditional or Roth IRA. Be prepared to rebalance your portfolio. If you’re facing a forced early retirement, or even if you think it’s a possibility, you may want to rebalance your portfolio to provide more opportunities for income. Talk to your financial advisor about income strategies appropriate for your particular situation.

Build up cash accounts. Even during “normal” times, it’s a good idea to keep an emergency fund, in cash or other liquid vehicles, containing six to 12 months’ worth of living expenses. If you suspect a forced early retirement is heading your way, try to beef up your cash holdings as much as possible.

Repay any 401(k) loans. Once you’ve left your employer, you may be forced to repay a 401(k) loan within two months – an obvious hardship during a stressful time.

Work part-time. Even if you were forced to retire from one job, it doesn’t mean you

couldn’t find another. This might be the perfect time to take a part-time job in an area in which you’ve always wanted to work.

Get some help. By consulting with a professional financial advisor, you may find that you actually can afford to retire early. A financial advisor can help you develop those income and spending strategies that

are appropriate for your situation. And the earlier you get this type of help, the more options you ultimately may have.

You may not be able to avert an unwanted, early retirement, but by preparing for it, as far in advance as possible, you can improve your chances of maintaining the retirement lifestyle you’ve envisioned.

How to choose a financial professional

By Jason Skifstad As you navigate the financial world, you’ll most likely deal with a wide array of investment choices, constantly changing tax laws, estate-planning issues and other areas.

And then, to make things even more complex, you’ll have to consider your own risk tolerance, time horizon and individual goals. If you’re like most people, you don’t have the time and expertise to create, monitor and adjust your investment strategy by yourself, so you’ll need to get some help.

But how can you choose a financial professional who is right for you?

You’ll need to do some research, possibly by interviewing a few candidates. Here are a few questions you may want to ask: Do you have experience working with people like me? Ideally, you’d like to work with someone who has experience in

helping people like you — that is, people with similar income and asset levels, family situations, goals and so on. The more familiar a financial professional is with people like you, the better that person will be at helping you identify the appropriate investment moves.

Do you have a particular investment philosophy? Look for someone with a thoughtful, reasoned philosophy on investing. As a general rule, be suspicious of anyone promising you big, quick gains. The best financial professionals seek to help their clients achieve positive long-term results through disciplined, persistent and sensible investment moves.

How often will you communicate with me? If you’re going to entrust your hardProfessional, page 17

WE UNDERSTAND 16 Kitsap Peninsula Business Journal•KPBJ.com January 2010

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Investor alert – The new IRS reporting rules They affect anyone with a brokerage account

By Jason R. Parker Are you going to purchase stocks in 2011?

If your answer to that question is “yes,” there’s an important IRS rule change you should know about.

If you buy a stock in 2011, your broker must report the gain or loss when you sell it.

In fact, this will be true for the following investment classes as of the following dates: • Individual stocks you buy after Jan.1 • Mutual fund shares you buy after Jan.1, 2012 • Bonds, options and other securities you buy after Jan. 1, 2013 Prior to 2011, reporting the gain or loss triggered by the sale of an investment was your responsibility – but the IRS wasn’t satisfied with that.

It’s all about the cost basis. To properly tax your investment when it is sold, the IRS has to know what you initially paid for it. In financial jargon, this acquisition price is known as the cost basis.

It isn’t always easy to figure the cost basis

– factors like splits, mergers, reinvestment of dividends and inherited or gifted investments can make things hazy. The IRS simply doesn’t want to rely on your math anymore – federal government studies estimate that the agency loses up to $25 billion in tax revenue each year because of cost basis errors.

Your broker will send Form 1099-B to the IRS. Each sale of a stock bought in 2011 will generate a 1099-B. You will get a copy; the IRS will get a copy. On that 1099-B form, the gain or loss will be characterized as long-term or short-term.

The key here is to make sure your broker uses the accounting method you prefer as they report gains or losses. Most brokerages report individual securities using the FIFO method, as that is the IRS default method.

FIFO is an acronym for “First in, First out” – that is, the shares bought first are the shares sold first.

With the FIFO method, you end up selling your cheapest shares first. In a down market, that’s okay – but in a rising market, many investors favor the specific ID method, in which they identify specific

PROFESSIONAL

By doing your homework in advance, you can develop a solid relationship with a qualified financial professional — someone who will be with you far into the future.

January 2010 Kitsap Peninsula Business Journal•KPBJ.com 17

from page 16 earned financial resources with someone, you’ll want that person to communicate with you regularly as to how you’re doing and what changes you may need to make.

How often will you receive investment statements? How many times a year will you meet to review your progress? Can you have face-to-face consultations whenever you need them? These are the types of questions you’ll want to ask any prospective financial advisor.

Will you be my primary contact? If you seek a one-on-one relationship with a financial professional, you’ll want that person to be your main contact, if not your exclusive one. You deserve the attention and expertise of a financial professional, so if you’re interviewing someone who seems as if he or she might try to “pass you along” to subordinates in the office, keep looking.

What services do you offer? If you want your financial professional to help you create a unified investment strategy, you’ll also want that person to help you implement it – which means he or she needs access to a full range of investment and money management products and services.

How are you paid? Financial professionals are compensated in any of a number of ways. They may work strictly on commissions, or they may work on a feeonly basis, with the fee either agreed upon in advance or based on the level of assets under management. And some financial professionals work in a combined fee-andcommission arrangement. From an investor’s point of view, one method of compensation may not be “better” than the others; nonetheless, it’s important for you to fully understand how your financial advisor will be paid.

shares they want to sell. Using this method enables you to sell your highest-cost shares first, which can be tax-wise.

More details worth noting. According to the Wall Street Journal, the new reporting rules will also apply to REITs, foreign stocks and foreign ETFs classified as stock in 2011.

In 2012, the reporting rules will apply to most ETFs and DRIPs in addition to mutual funds.

In 2013, the reporting requirements may also apply to derivatives and partnerships.

Remember, this does not apply to shares & investments bought before 2011. You will still have to personally track the cost basis of these investments and report the realized gains and losses to the IRS. By the way, these new IRS reporting rules do not apply to tax-sheltered investment accounts such as 529 plans and IRAs. (Editor’s Note: Jason Parker is the President of Parker Financial LLC, a fee-based registered investment advisory firm specializing in wealth management for retirees. His office is located in Silverdale. The opinions and information voiced in this material are not intended to provide specific advice or recommendations for any individual, and do not constitute a solicitation for any securities or insurance products. All information is believed to be from reliable sources; however, no representation is made as to its completeness or accuracy. Please consult your trusted professional for advice and further information.)

Investing during an unequal economic recovery

By Sean McGillivray Our economic challenges are many: workforce slack, real estate stagnation, falling treasury yields and contracting consumer credit are but a few. So will the next 20 years yield banana republic hyperinflation with the proverbial wheelbarrows of money or will Japanese style asset deflation keep the U.S. economy underpinned?

Lot’s of smart people come down on both extremes, but what if the answer is a little of both? If this financial crisis has taught us anything, it’s that we can expect global markets to recover unequally.

Let’s take emerging market economies as an example. As the financial super powers have mucked along for the last two years, the growth rates in countries like Australia, South Korea, and Brazil have exploded in ways reminiscent of the industrial revolution.

And just as the global economy is recovering unequally, so too will different sectors across domestic financial markets.

We’ll likely see inflation in certain areas while we experience deflation in other assets. China‘s uneven asset recovery is a perfect example; the Hang Seng Index has risen less than six percent YTD versus real estate values that have gained 30 percent in 2009 and 15 percent YTD. Back home, the Federal Reserve’s decision to pick and choose assets to support directly leads to dislocation and the possibility of inflation in one sector and deflation in other parts of the economy.

Specifically, the Fed is attempting to prop up prices in the real estate market through the use of cheap money and manipulation of government bond prices.

Part of what’s called accommodative monetary policy, this effort has caused real estate prices to stabilize temporally, but has led to large spikes in hard assets.

This emerging inflation trend among commodities is especially clear in the precious metal markets where frothy prices continue to be the order of the day. For example, silver futures rose to a high of more than $29 an ounce in November, up a stunning 67 percent since the first of the year.

Meanwhile, agriculture prices have soared to historic levels. Cotton futures traded above 1.57 this month, up a staggering 106 percent since the beginning of 2010.

In real terms, the Fed — by printing more money and purchasing assets — has been working to generate inflation. That’s right, our central bank is attempting to stimulate the economy through higher prices in the hope you will follow suit by emptying your savings account, investing in equities and buying a new GM Volt.

In essence, the debate about where our economy is headed comes down to whether or not one believes the Federal Reserve can control the inflation situation it’s created and is now trying to exit in a smooth and painless fashion. Market history shows that

this is much easier said in a Fed minutes statement then done in real life.

That’s why now more than ever, investors must be cautious with where their investment dollars are placed. A market battling both inflationary monetary policy with deflationary fundamentals can be tricky. Finite supply coupled with increasing world demand will lend support to hard assets such as gold, silver, corn, and oil. Add to that weakness in the U.S. dollar and it is easy to see how commodities have the potential to outperform equities in the coming decade.

As many a seasoned investor knows, a diversified portfolio will be the saving grace as uncertainty surrounds monetary policy, the uneven global recovery and geopolitical tensions.

(Editors note: Sean McGillivray is vice president and head of asset allocation for Great Pacific Wealth Management as well as president of Great Pacific Capital Management a registered commodity trading advisor. Find more information at www.gptc.com.)

Edward Jones financial advisor wins award Donald Logan of the financial services firm Edward Jones recently won the firm's Pioneer Award. The award recognizes financial advisors for successfully building their business over the past year in a new branch.

"I am honored to receive this award," Logan said. "I enjoy my work helping the people of Silverdale plan for their financial futures, but it gives me an extra boost to receive special recognition for my work."

Jim Weddle, managing partner for Edward Jones, said the firm makes a special effort to acknowledge exceptional work and performance by its financial advisors.

"At Edward Jones, we believe we can better serve individual investors by establishing community branch offices and having our representatives live and work in those communities," he said. "We realize, however, that because our financial advisors usually work alone, there isn't much opportunity to congratulate them for a job well done. That's why these types of awards are so important to us.”

18 Kitsap Peninsula Business Journal•KPBJ.com January 2010

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Jan. 14th For more information: Dee Coppola 800-733-7990 or email dee@wetapple.com

January 2011 Edition

Events And Activities Wednesday, January 5th Kitsap HBA Remodelers, 4:00 p.m.

Thursday, January 6th Developer’s Council, 7:30 a.m.

Friday, January 7th Installation Banquet, 6:00 p.m.

Kitsap Golf & Country Club Tuesday, January 11th Peninsula Home & Garden Expo Com. Mtg, 12:00 p.m.

Thursday, January 13th Wa. St. Energy Code Training, 9:00-1:00 Tuesday, January 25th Peninsula Home & Garden Expo Com. Mtg, 12:00 p.m.

Thursday, January 27th Executive Committee, 2:00 p.m.

Govt. Affairs Committee, 2:30 p.m.

Board Meeting, 3:30 p.m.

Wednesday, February 2nd Kitsap HBA Remodelers, 4:00 p.m.

Thursday, February 3rd Developer’s Council, 7:30 a.m.

Friday, February 4th ROAST AND TOAST ART CASTLE, 6:00 p.m.

Kitsap Golf & Country Club Please RSVP to HBA Tuesday, February 8th Peninsula Home & Garden Expo Com. Mtg, 12:00 p.m.

Tuesday, February 22nd Peninsula Home & Garden Expo Com. Mtg, 12:00 p.m.

Builders and Developers — Start 2011 Off With the Current Regulatory Information!

Washington State Energy Code — Takes effect January 1, 2011 The 2009 Washington State Energy Code is complex and it is imperative you understand the magnitude of the changes in this code and the way it will affect the jobs you bid. Depending on the variety of elements affecting a job you are bidding, the cost impact to meet the code could be $10,000 per house, or more.

The HBA has a half-day energy code class scheduled for January 13, 2011 at the HBA office. The class is $10.00 and is open to member and non-member companies. Space if very limited and advanced registration is required.

Since its adoption there have been some changes. Be knowledgeable about the changed carbon monoxide rules and the changes to the duct testing and sealing section. There is also litigation pending on these rules, specifically Chapter 9, but at this time the rules are in full effect. For now, you must follow the Washington State Energy Code as adopted (or amended). For more information about the code, you can visit the website of the State Building Code Council at www.sbcc.wa.gov and the WSU Extension at www.energy.wsu.edu.

Construction Stormwater Permit — Updated and In Effect Now Ecology has adopted, the Environmental Protection Agency required update to the State’s Construction Stormwater General Permit. The updated requirements of this permit take effect on January 1, 2011. The CSWGP covers all areas of Washington State, except for federal and Tribal lands as specified in the permit’s Special Condition S1.E.3.

Operators of the following construction activities are required to seek coverage under this CSWGP: a) Clearing, grading and/or excavation that results in the disturbance of one or more acres and discharges stormwater to surface waters of the State; and clearing, grading and/or excavation on sites smaller than one acre that are part of a larger common plan of development or sale, if the common plan of development or sale will ultimately disturb one acre or more and discharge stormwater to surface waters of the State, and b) Any size construction activity discharging stormwater to waters of the State that the Department of Ecology: i) Determines to be a significant contributor of pollutants to waters of the State of Washington, or ii) Reasonably expects to cause a violation of any water quality standard.

While the updated permit didn’t change a lot, you need to know the differences and comply. BIAW will be offering the Certified Erosion and Sediment Lead (CESCL) classes again this year. For a list of scheduled classes, contact Amanda Fields at 800-228-4229. If you have questions about the permit, contact Jodi Slavik at 800-228-4229.

2011 OFFICERS President . . . . . . . . . . . . . . . Justin Ingalls, RCS First Vice President . . Wayne Keffer, CGR, CAPS Second Vice President . . . . . . . . Robert Baglio Treasurer . . . . . . . . . . . . . . Randy Biegenwald Secretary . . . . . . . . . . . . . . Dee Coppola, CGA Immediate Past President . . Ron Perkerewicz

2011 BUILDER & ASSOC. DIRECTORS Derek Caldwell • Karla Cook • John Leage Robert Lubowicki • Judy Mentor Eagleson Jim Way, CGB • Jason Galbreath • Kevin Hancock Leslie Peterson, CGA • Shawnee Spencer

2011 STATE DIRECTORS John Armstrong • Robert Baglio • Derek Caldwell Lary Coppola • Walter Galitzki • Brent Marmon Gale Culbert, CGR, CGB, GMB Wayne Keffer, CGR, CAPS • Greg Livdahl

2011 ALTERNATE STATE DIRECTOR Robert Coultas • Rick Courson

LIFE STATE DIRECTORS Bill Parnell

2011 NATIONAL DIRECTORS Robert Baglio • Justin Ingalls, RCS Wayne Keffer, CGR, CAPS

2011 ALTERNATE NATNL. DIRECTORS David Smith • Mikael Brown • Jeff Coombe

LIFE DIRECTORS Rick Courson • Jim Smalley • Bob Helm Bill Parnell • Larry Ward John Schufreider • Dori Shobert

2011 COUNCIL & CHAIRS Build a Better Christmas. . . Randy Biegenwald Built Green . . . . . . . . . . . . . . . . Walter Galitzki

By Laws & Nominations . . . Ron Perkerewicz Developers Council . . . . . . . . . . . . . Norm Olson Golf Classic . . . . . . . . . . . . . Shawnee Spencer Govt. Affairs Cmte. . . Wayne R. Keffer CGR, CAPS HBA After Hours. . . . . . . . . . . . . . . . . . . . . . . . . . . . TBD Remodelers Ccl Chair. . . David Godbolt, CGR, CAPS Membership . . . . . . . . . . . . . . . . Robert Baglio Parade of Homes . . . . . . . . . . . . . Dee Coppola Peninsula H&G Expo . . . . . . . . . Melvin Baird Peninsula H&R Expo . . . . . . . . . . . . . . . . . TBD

HBA STAFF Executive Vice President . . . Teresa Osinski, CGP tosinski@kitsaphba.com Administrative Coordinator . . . Melissa Greil info@KitsapHBA.com Events & Administrative Assistant . . Toni Probert hbaevents@kitsaphba.com

Home Builders Association of Kitsap County 5251 Auto Center Way, Bremerton, WA 98312 360-479-5778 • 800-200-5778 FAX 360-479-0313 www.KitsapHBA.com

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January 2011 Edition

Let me begin by saying I feel very honored to be your Justin president for 2011. Thank you Ingalls for trusting me and electing me Kitsap Trident Homes to a position that I pledge, I will 2011 President not take lightly. I am convinced that with our membership and staff we can continue the strong course that has been set before us by all those who have given their time to create what this organization is today.

At times we can sound like a broken record, but during these times when most are feeling the affects of these tough economic times, it is best to encourage and support your fellow members.

Doing business with local Homebuilder Association members will help this entire organization in the long run.

I’d like to encourage you to join one of the many committees the Homebuilder ’s has to offer. Personally I have found many of them to be interesting, informative and a great opportunity to gain more contacts and friendships. The “HBA After Hours” program began the year real strong and was well attended, after a few months attendance began to fall off. With your help and support, it has the potential to be a real asset to all of us. In addition you may be interested in the Developer ’s Council, the Remodeler ’s Council or the Government Affairs Committee to name just a few. All these groups meet on a regular basis and are a great way to give back to the organization and your community.

We will continue to work with local and state governments on policies, processes and budgets. The first of the year the new energy codes take affect, so be sure you are up to date. We will also be following the fire flow and the debate on the possibility of sprinklers. There’s also the work pertaining to land use, rural stakeholder groups and a chance to partner with the County on stimulus money programs.

Also this time of year reminds us that we need to help our community as a whole. I’d like to show a special appreciation to our “Build a Better Christmas” program and the committee that provides gifts for all those at the YMCA Alive Shelter. That’s one example of an opportunity to be able to give back, and that is what makes our association special.

As most of you know by now, Art Castle has left his post of Executive Vice President after many years of wonderful service. I’d like to take this opportunity to thank him for his hard work and dedication to the organization and wish him the best in his future endeavors. January 1st starts the new tenure with Teresa Osinski in the position, and the leadership feels very confident and secure in her abilities and qualifications to lead the Home Builders Association of Kitsap County moving forward. Working together we feel we will continue providing strong services and benefits that you all came to expect.

Over the past year I have taken advantage of tapping into the wisdom and experiences of our past presidents and long time members. I plan to continue doing this through out the year to ensure we are working for the entire membership. I also welcome you to contact myself directly, or our wonderful staff, with your thoughts and ideas to better our organization. I look forward to a wonderful year.

It’s a new year and this year that means change here at the HBA. By now you all know that Art has stepped down as CGP Executive Vice President of our Executive association.

I am honored to Vice President have been recommended by Art to take on this important role, and humbled by the support of the association’s senior leaders and Board of Directors. I have learned a great deal in the last 4 years working for Art and couldn’t be more proud to represent you and our industry.

I do believe that with change comes opportunity. I am excited about the opportunities we have as an association and I look forward to working with our membership as we continue to plod our way through these challenging economic times. To that end, be sure to call me, or anyone here at the HBA, if you have questions or need assistance that you think we can provide you. There may never have been a more important time to be a member of the Home Builders Association of Kitsap County than now. We are committed to assisting our members whenever possible, and we look forward to it.

Though the economy is difficult, it is in these times that advocacy on your behalf becomes even more important. We monitor the regulatory activities of the jurisdictions throughout the County and work to protect the interests of our members. In 2010 we were able to get a stormwater checklist implemented which allows consideration of alternatives for sites under an acre and we staved off several jurisdictional efforts to mandate fire sprinklers in new single family residential construction. In Kitsap County we also worked hard to successfully keep fire flow requirements from dramatically increasing.

The Association will continue to offer industry training with classes throughout the year. We will kick off January with our third Washington State Energy Code class and as the year progresses we will offer a variety of other training selections. Watch the E Weekly newsletter for the latest information.

If we haven’t met, please introduce yourself. I would like to meet you and learn what you do, why you’ve joined the HBA, and how we can help you do business in Kitsap County. Do you know all the benefits available to you as an HBA member? It’s never too late to start maximizing the value of your investment, so don’t hesitate to call us about health insurance, return on industrial insurance, Verizon wireless discounts, and many other terrific purchasing discounts, including one for GM vehicles. Have you considered participating as a vendor or committee member for either of the HBA home expos?

Curious how you could become a part of either, or both, of these terrific, local, marketing opportunities? Call the HBA to learn more.

Finally, I encourage members and non-members that know Art to come and celebrate his career with a Roast and Toast on February 4, 2011. Your advanced registration is required, and opportunities will be given for “small roasts” and “small toasts” for any that want to share a story about Art, or offer him well wishes. This is going to be a great night and we would love to see you there.

Happy New Year Everyone!

Teresa Osinski

January 2011 Edition

Government Affairs Committee Wayne R. Keffer, WRK COnstruction, Inc. 2011 Chair Last year I met with a vast array of elected officials and key staff in our local jurisdictions about rules, regulations, and their impact on affordable housing and our industry. When I look at back at the year it is dizzying to grasp all the pressures on the construction industry and what that means for our members and the public that need and deserve safe, affordable housing.

You may wonder what these communications result in. Among other things, we effectively stopped several significant, and expensive changes to the local fire codes. In the County, an effort to increase the fire flow required (the amount of water available to fight fire) which would surely force many fire sprinklers in single-family homes. That said, we expect this issue to come back again. If it resurfaces, we will insist that water purveyors be part of that discussion. After all, they know how much water they can provide and until that is known there will be no way of knowing if the numbers are currently realistic, could ever be obtained, and at what cost to consumers. We always remember that with increasing costs more people will be forced to live in yesteryear ’s less safe and less efficient housing stock.

Changing gears now, I also want to emphasize the importance of helping your customers understand why hiring a professional contractor is important. It’s timely with winter well under way and several storms under our belt already. Helping your potential customers to understand this will help you, this industry, and your client.

Let’s start with why is it important. Registered contractors are required to have insurance and a bond, and workers are required to be covered by labor and industries in case of an accident. During a wind storm, a homeowner has a tree fall on their house.

The insurance company gives them a check to repair the roof. However, the homeowner is thinking they have a relative out of work and decide it would be best to have him repair it. This helps the relative and saves the homeowner some money. Why not? The why not, that most homeowners don’t understand is that when the relative falls off the roof, causing injuries, state regulations see the homeowner as the “employer.” As such, the homeowner is liable. Or less extreme, what if the work is shoddy and the roof leaks or the job never gets completed? “Hiring” an unregistered contractor with no bond, leaves the homeowner on the hook. Encourage your potential clients to look up contractors on the L&I website at www.lni.wa.gov before they make a hiring decision. Consumers should verify a contractor ’s status even if they’ve hired them before. Just because they were registered yesterday doesn’t mean they are today.

Imagine the Possibilities in 2011!

The annual Peninsula HOME & GARDEN Expo is coming March 18, 19, and 20 to the Kitsap Sun Pavilion. Mark your calendars to attend and kick spring off with great ideas, beautiful landscaping displays and a vendor to answer just about any question you may have regarding your home. VENDORS — Now is the time to get your booth reserved. If you have a product or service you would like to display at the Expo, please contact the HBA today. We can be reached at 360-479-5778 or details can be found at our website at www.kitsaphba.com.

This is the “Biggest Show West of Seattle™.” You don’t want to miss it!

Protect Your Home from Wind Damage “In like a lion, out like a lamb.” As the old adage says, the month of March can be blustery. We can look forward to that, since so far this season we are experiencing a manic winter that began early, with our November snow and wind storms, followed by incredible rain and wind in December. What will the rest of this winter have in store? Time will tell, but you can and should be looking at your home and how to protect it from wind damage. The strong winds may tempt you to bring the kites out of the attic, but for now, take the time to protect your home from the extreme winds that can damage your investment if it’s not properly protected. There are several things you can do to make your home more wind-resistant, but home owners should remember that nothing replaces authentic materials and good, old-fashioned craftsmanship. Here are a few ideas to consider: Improve Your Roofing’s Performance — Your roof, and the deck beneath it, forms one of your home’s most critical shields to wind and rain. Loss of roof covering such as shingles, tiles or metal panes can make your home more susceptible to water damage.

Protect Your Home’s Exterior — The exterior doors and windows of your home act as its protective shell. Solid wood or hollow metal doors better resist wind pressure and flying debris. Resistance is also increased by doors with at least three hinges and a deadbolt security lock with a minimum bolt throw of one inch. If you have double entry doors, install head and foot bolts on the inactive door.

Brace Garage Doors — Garage doors can be especially at risk during high winds. Unless you have a tested hurricane-resistant door, winds may force it out of its roller track — especially if the track is light weight or some of the anchor bolts are not in place. Check with your garage door manufacturer about retrofit bracing kits for existing homes.

Make Manufactured Homes Wind-Resistant — Non-permanent foundations can make these homes more vulnerable to wind damage, however, so extra precautions during windy seasons are necessary. Be certain your manufactured home is installed according to the manufacturer’s instructions. It is imperative to properly anchor down your home, and in the case of severe high winds, follow official evacuation orders.

Landscape to Shield Your Home from High Winds — Properly selected and placed landscaping can provide excellent wind protection for your home. For maximum protection, plant your windbreaks at a distance from your house two-to-five times the height of the trees at maturity. You can also check the strength of a tree by measuring the angle between the branch and the trunk — those with angles between 45 and 60 degrees have a good chance of surviving strong winds.

Contact the Home Builders Association of Kitsap County for Professional Contractors — If your home or property is damaged this winter, please make your first stop for help be the Home Builders Association of Kitsap County. Our members are ready and able to assist you in any variety of repairs from your roof to your crawlspace and (literally) every square foot in between. We are an association of companies involved in everything related to homes. We are proud to connect consumers to the services they need. To find an HBA member, please contact us at 360-479-5778 or on the web at www.kitsaphba.com.

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January 2011 Edition

Welcome New Members A Spike is a member who sponsors new members into the association. The association loses a number of members each year from non-renewal due to changes in business circumstances. This membership loss must be made up with new members if the association is to continue; without active Spikes our association would not exist.

Robert Simonoff • West Shores Interiors 3273 Chico Way NW, Bremerton,WA 98312 (360) 692-6212 • Fax: (360) 377-0788 • Email: info@westshoresinteriors.com Sponsor: Rick Cadwell, Silverdale Realty

Thank You Renewing Members Over 25 Years Kingston Lumber (28) Novak Gutters (29) Sundance Solar/Custom Hearth (29) 20 Years to 25 Years Brian Sundberg Landscaping Inc 15 Years to 19 Years Gresham Well Drilling Inc 10 Years to 14 Years Art Anderson Associates GTS Interior Supply Matt Ryan Company T-Oz Construction Inc

5 to 9 Years Bruce D Brunton Heartstring Construction Inc Skelley Works Vern’s Organic Topsoil & Bark West Sound Electric Inc 2 to 4 Years Andersen Homes Ronald C Templeton PS Attorney at Law First Year Renewals BW Construction Chehalis Sheet Metal Heating & Cooling

MEMBERSHIP MATTERS As you think about joining the HBA or renewing your membership, please consider the importance of relationships. Our relationships make us stronger. We learn from each other. We pass on news to each other, or even better, referrals and leads. We expose each other to different perspectives and ideas, so we make wise decisions, and not get stuck in our own bubble. We get advice from each other, and support too. We help each other get involved in the association, showing how easily it’s done, and how rewarding. We introduce each other to new people. We have a heck of a good time together too.

In addition to the importance of making relationships within the HBA membership, your relationships are a valuable resource for our association too.

Look through your email contacts, your accounts receivable and payable, your LinkedIn connections, your Facebook friends, your rolodex or wherever you keep your names and numbers. Who should be part of our community? Who can benefit from our advocacy? Our programs? Our information? Kitsap’s economy is strongest when we work together.

EDUCATION • January 13th — Washington State Energy Code 9 -1 • May 27th — Customer Service 8-5 • Sept 15th — Lien Law 8-12, Construction Contracts 1-4:30 • Oct 11th — Business Management for Building Professionals 8-5 • Oct 18th — Building, Marketing, Financing & Appraising Green 8-12:30 Contact the HBA for details and watch the EWeekly Newsletter for updates.

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ACTION

LIFE SPIKES CREDITS Jim Smalley . . . . . . . . . . . . . . . . . . . . . . . . . 380.5 Tim Burke . . . . . . . . . . . . . . . . . . . . . . . . . . . . 318 Gale Culbert. . . . . . . . . . . . . . . . . . . . . . . . . 265.5 Dee Coppola . . . . . . . . . . . . . . . . . . . . . . . 242.25 Kerry Chamberlin . . . . . . . . . . . . . . . . . . . . 235.5 Dale Armstrong . . . . . . . . . . . . . . . . . . . . . . . 235 Bill Parnell . . . . . . . . . . . . . . . . . . . . . . . . . . 217.5 Michael Hancock . . . . . . . . . . . . . . . . . . . . 187.5 Andy Mueller . . . . . . . . . . . . . . . . . . . . . . . . . 185 Douglas Woodside . . . . . . . . . . . . . . . . . . . . . 182 Bob Helm . . . . . . . . . . . . . . . . . . . . . . . . . . . 175.5 Kevin Parnell . . . . . . . . . . . . . . . . . . . . . . . . 175.5 John Armstrong. . . . . . . . . . . . . . . . . . . . . 150.25 Rick Courson . . . . . . . . . . . . . . . . . . . . . . . . 147.5 James Ingalls . . . . . . . . . . . . . . . . . . . . . . . . . . 143 Randy Biegenwald . . . . . . . . . . . . . . . . . . . . 123 Greg Livdahl. . . . . . . . . . . . . . . . . . . . . . . . . . . 94 Robert Lubowicki . . . . . . . . . . . . . . . . . . . . . 90.5 David Smith . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 Michael Brown . . . . . . . . . . . . . . . . . . . . . . . . . 84 Larry Ward. . . . . . . . . . . . . . . . . . . . . . . . . . . 82.5 Jeff Coombe . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Dori Shobert . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Lary Coppola. . . . . . . . . . . . . . . . . . . . . . . . . 54.5 Rick Cadwell. . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Joanne Lockwood . . . . . . . . . . . . . . . . . . . . . 42.5 Charlie Mackall . . . . . . . . . . . . . . . . . . . . . . . . 42 Donna Milner . . . . . . . . . . . . . . . . . . . . . . . . 41.5 Cheryl Gallup . . . . . . . . . . . . . . . . . . . . . . . . 39.5 Scott Henden . . . . . . . . . . . . . . . . . . . . . . . . . 38.5 Larry Elfendahl . . . . . . . . . . . . . . . . . . . . . . . 35.5 Ron Perkerewicz . . . . . . . . . . . . . . . . . . . . . . . 35 Justin Ingalls . . . . . . . . . . . . . . . . . . . . . . . . . 32.5 Steve Crabb . . . . . . . . . . . . . . . . . . . . . . . . . . 29.5 Steve Brett . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Wayne Keffer . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Barry Keenan . . . . . . . . . . . . . . . . . . . . . . . . . . 26

SPIKES CANDIDATES CREDITS Brad Reid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Corey Watson . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Derek Caldwell. . . . . . . . . . . . . . . . . . . . . . . . . . 3 Frank Murr . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Jim Heins. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Walter Galitzki . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Judy Granlee-Gates . . . . . . . . . . . . . . . . . . . 2.75 Jon Brenton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Karen Alyea . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Len Mallory . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Robert Simonoff . . . . . . . . . . . . . . . . . . . . . . . . . 2 Ted Bowman . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Al Timm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 Daryl Hemley . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 Ken Holmgren. . . . . . . . . . . . . . . . . . . . . . . . . 1.5 Mark Khulman . . . . . . . . . . . . . . . . . . . . . . . . 1.5 Michael Glading . . . . . . . . . . . . . . . . . . . . . . . 1.5 Rob Smallwood . . . . . . . . . . . . . . . . . . . . . . . . 1.5 Ron Galla . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 Ron House . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 Brett Warner . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Daniel Ryan . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 David Godbolt . . . . . . . . . . . . . . . . . . . . . . . . . . 1 James Pickett. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 John Leage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 John Ramsdell . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Judy Mentor Eagleson . . . . . . . . . . . . . . . . . . . 1 Ken Orlob . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Leslie Peterson . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Mike Orcutt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Molly McCabe . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Shawnee Spencer. . . . . . . . . . . . . . . . . . . . . . . . 1 Steve Johnson . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Steve Morrison . . . . . . . . . . . . . . . . . . . . . . . . . . 1

SPIKES CREDITS Brent Marmon . . . . . . . . . . . . . . . . . . . . . . . . . 24 Jeff Swan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.5 Dave Revis . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Robert Coultas. . . . . . . . . . . . . . . . . . . . . . . . 22.5 AnnaLee Todd . . . . . . . . . . . . . . . . . . . . . . . . . 15 Joe Gates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.5 Darren Devitt. . . . . . . . . . . . . . . . . . . . . . . . . . 8.5

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Port Orchard gets downtown grocery store

For decades, it was the home of Geiger’s Pharmacy, but after sitting vacant ever since the Geigers retired and closed the store in July of 2009, it has a new lease on life as one of 7-Eleven Corporations new generation of retail outlets.

And make no mistake, this isn’t the 7Eleven you’re used to. 7-Eleven has gone upscale, and is no longer just about cigarettes and beer. The new store, at 567 Bay St. in Port Orchard, features fresh pastries made daily, as well as fresh fruit, fresh sandwiches made every day, 13 kinds of coffee, hot chocolate, latte’s, cappuccino’s and numerous kinds of teas. There’s also an upscale selection of wines, music and movies, power outage and other emergency supplies, and of course, groceries.

Port Orchard Mayor Lary Coppola was pleased to announce the opening of the store, as getting a downtown grocery store to serve visiting boaters at the Port Orchard

Marina and Port Orchard Yacht Club, as well as downtown residents, was one of his original goals for the City.

Building owner Van Vlist first told Coppola about 7-Eleven’s interest almost a year ago, explaining the new retail concept the chain was unveiling. At the time there were only three in the state, and Coppola visited one of them, located in Kent, near 7-Eleven’s regional office, and came away impressed.

“It will be a good fit for our downtown,” he said.

The chain has reinvented itself to survive consumers’ changing habits, according to Tim Bain, 7-Eleven franchise manager. As smoking has declined, about two years ago, the chain made a corporate decision to gear up for freshness and began offering sandwiches made daily and fresh produce to attract a younger, and more health-conscious customer.

“It’s a really big focus for us right now,” Bain said.

According to 7-Eleven spokeswoman Stacia Kirby, four new 7-Elevens are set to open in Kitsap County, bringing the firm’s total presence to seven from the three currently it currently has. Besides the downtown Port Orchard outlet, the three others include one under construction in its own, new stand-alone building at 1800 Mile

Hill Drive, adjacent to Towne Square Mall in South Kitsap, another in Bremerton at the corner of North Callow Ave and 11th St. in the same building as Little Caesars Pizza, and one at 9671 Silverdale Way close to Kitsap Mall, That location was a former Circle K convenience store before becoming a check cashing outlet that closed earlier this year.

While rapid retail expansion in such a slow economy is unusual, Bain explained that the Dallas-based chain saw opportunity

in the current business climate. 7-Eleven, which hasn’t grown very much over the last 25 years, decided to take advantage of all the mom-and-pop stores that have closed in the recession, and left a void in many local markets. “We’re just taking advantage of that situation,” he explained.

The four new 7-Elevens are corporateowned, but Bain said he is looking for potential franchisees who have $160,000. He can be reached at (253) 796-7156.

Snyder named “Five Star” Program Real Estate Agent for 2010 Sherri Snyder, of Coldwell Banker McKenzie Associates of Bainbridge Island, has made the 2010 list of “Best in Client Satisfaction Real Estate Agents” determined by Seattle Magazine’s “Five Star” selection system — the only service award program based on direct client satisfaction.

Over 25,000 recent home buyers and housing industry professionals were asked to cast a ballot to identify exceptional real estate agents in the area. The rigorous nomination process was administered by an independent market research company, Crescendo Business Services. On the ballots, recipients were asked to nominate only real estate agents whom they knew through personal experience, and to evaluate them based upon nine criteria: customer service, communication, finding the right home, integrity, negotiation, marketing the home, market knowledge, closing preparation and overall satisfaction.

This consumer based approach to identifying service professionals is unique in the marketplace and specifically designed to help consumers identify a high quality service professional. After review by a blue ribbon panel of local real estate experts fewer than five percent of all licensed real estate agents in the local Puget Sound area were selected.

“As proud as I am to receive this award,” said Snyder, “I am even more excited to share it with my clients. There can be no Five Star winners without Five Star clients.”

Coldwell Banker McKenzie Associates is located at 10048 NE High School Road on Bainbridge Island.

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January 2010 Kitsap Peninsula Business Journal•KPBJ.com 23

Pacific Northwest Title, with support from local real estate offices and lenders, are proud to announce the results of their 6th Annual Holiday Food Drive benefitting Kitsap County food banks. The food banks received a total of 3,964 lbs. of food and $170.00 cash! The results by area:

Rolling Bay Land Company breaks ground on two new demonstration homes

Studio Hamlet and Geoffrey Hobert Contractors have again partnered with

Rolling Bay Land Company to bring energy efficient housing to Bainbridge Island.

Following up on their initial project of building the First LEED certified home on the island in 2007, the team resolved to focus on energy efficiency in this project that includes two new homes. Participating in the Department of Energy “Build America Challenge,” the homes with be tested and third-party-verified and will receive an E-

Bremerton Bar & Grill bid awarded to TRC Tim Ryan Construction, Inc. (TRC) has won a contract to renovate the 190 Pacific Avenue building. The renovation of 6,905 square feet includes selective building and site demolition, core and shell improvements and tenant finish work. The project is scheduled to be complete in April.

The former bank building will be repurposed into the new home of Bremerton Bar and Grill, an American-Style family-friendly restaurant. The eatery is being promoted as another step in the continuing revitalization efforts surround downtown Bremerton as well as a destination for residents, visitors and tourists.

The architect for the project is Michael Whalen, AIA, P.L.L.C. of Seattle.

For more information, contact Tina Leany at (360) 779-7667 ext. 102, Tina@TimRyanConstruction.com or visit www.TimRyanConstruction.com.

Scale rating between 0-100 (0 being the best). These two cottage homes will exceed code requirements in many areas and will save the homeowner at least 50 percent in utility bills. Many of the key features of the cottages are in the wall assembly/building envelope including rigid insulation panels on exterior sheathing, advanced framing, rain screen siding, and blown in insulation.

One cottage has the potential to be NetZeroEnergy. Homeowners will be able to monitor real time energy usage in the

home with an Energy Dashboard.

An open house to showcase a wide variety of innovative building products and techniques will be held on Jan. 15 from noon to 4 p.m. at 10912 Sunrise Drive on Bainbridge Island. For more information contact Lisa Martin at (206) 780-8366, www.rollingbaylandco.com; Russell Hamlet at (206) 842-7355, www.studiohamlet.com; or Geoffrey Hobert with Geoffrey Hobert Contractors at (206) 818-2998.

Sun Wind Concepts solar installer earns NABCEP certification Michael Lichtenberger, co-owner of Sun Wind Concepts, a renewable energy and efficiency design/build company, has earned the solar industry’s leading recognition of expertise as a certified installer of solar photovoltaic electric systems from the North American Board of Certified Energy Practitioners (NABCEP). NABCEP is a respected and well-established national certification organization for renewable energy professionals.

Designation as a NABCEP certified solar PV installer is widely recognized to be the most important and meaningful certification of its kind in the renewable energy industry.

Sun Wind Concepts is an installer of solar PV, solar hot water, wind, and energy efficiency products. Sun Wind has installed 322kW of solar PV for commercial and residential customers for over 13 years. “With the Washington and Federal incentives, PV system payback can be under 10 years and sometimes under 8 years,” states Lichtenberger. ”Compared to just a couple of years ago, these payback numbers are incredible.”

For more information, visit www.sunwindconcepts.us, e-mail mlichtenberger@sunwindconcepts.us or call (206) 855-9434.

24 Kitsap Peninsula Business Journal•KPBJ.com January 2010

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Poulsbo #CBA454857 Lease Very visible office space with great parking, competitive rates, quality building. Up to 3700 sq.ft. of useable space - can be divided. Joe Michelsen 360-692-6102.

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Poulsbo #159988 $249,000 Well established, very profitable marine business for sale.

In business for over 15 years. Comes complete w/equipment, special tools and equipment. Large parts Inventory, loyal customer base. Has capacity to haul out & transport boats up to 30’ feet w/three trailers. Both inboard & outboard repair. Lease negotiable, on month to month now but building owner would like long lease.

Owner retiring. Jim Toroni 360-692-6102/360-536-1250. $359,999 Bremerton #144321 This commercial property is located on the exit to Callahan Ave from Hwy 303 NE, just after the Warren Ave Bridge headed north. The property is zoned Employment Center (CE) & lends itself to multiple uses.

Kevin Abrams 360-692-6102/360-551-2318.

State’s budget woes eroding economic development efforts

By Bill Stewart, Executive Director Kitsap Economic Development Alliance Washingtonians left a clear message when the votes were counted in the fall election: Cut the budget to deal with projected state revenue shortfalls; we have no appetite for tax increases to save programs.

Following the mid-December release of the governor’s proposed budget for the next two years, the legislature convenes Jan. 11 for what will surely be a grueling process to save more than $5 billion as it creates the next biennial budget.

From my more narrow perch, state and local economic development capacity has been taking its hits and there certainly are more to come. It takes years to build expertise and capability, and just weeks to tear it down. The long-term implications for Washington’s competitiveness — and Kitsap’s — are concerning.

Not widely known is that the Kitsap Economic Development Alliance, like many of our counterparts throughout the state, was founded as a result of state general fund appropriation in the mid-1980s that continues today. The program was Team Washington, launched by Governor Booth Gardner as a strategy to help communities create the capacity to grow our way out of economic recession and begin diversifying local economies. State-level economic

development services to companies and communities also were increased.

This time around, the severity of forecasted state revenues is forcing a strategy of cutting our way out of economic distress….if we can. Much of the economic development capacity that has evolved in the years since Team Washington is quickly eroding in the current environment.

The Washington Department of Commerce recently conducted a comparative analysis of economic development funding in other states and found a more stark contrast in investment than most of us in the business had assumed. For all economic development related state appropriations (education & training, local capacity, state services, special programs, etc.) Washington spends about $2.72 per capita. Colorado spends $4.36 per capita; Texas, $6.09; North Carolina, $7.28; Utah, $11.21… you get the picture.

Locally it doesn’t look much better. Of the 34 economic development councils in Washington, KEDA is 16th in total budget. Nine of the 15 counties with higher budgets have smaller populations and economies than Kitsap.

Although most of KEDA’s operating income is from local companies and public entities (we are a private non-profit corporation, not a government agency), about 35 percent of our 2009 budget was derived from a performance-based contract

with the state. Our state contract for 2011 is projected at 23 percent of income, although it could fall much further.

The vulnerability that has resulted from the dependence on state assistance requires KEDA to continuously build our private business membership while also ensuring that local public entities continue in collaborative roles. For an economy this size, there are many businesses out there that have a stake in this work and management is needed in the game.

A local public-private partnership is our foundation and it will always be the key to effectiveness — lots of fingerprints. It must be strengthened if Kitsap hopes to separate ourselves from the many communities throughout the state and country who want the same quality jobs and investment we do (including our own companies!). I can tell you first hand, having diverse leaders engaged in local economic development does make a competitive difference. How strong a team will we field in the new economic environment?

Our charge going forward also requires us to develop a more predictable model for

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BJC Group announces the completion of new dental facility

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January 2010 Kitsap Peninsula Business Journal•KPBJ.com 25

The BJC Group has just completed the construction of a new dental facility on Pottery Avenue in Port Orchard. The new facility is for Doctors Chris Bock and Paul Hutchinson of South Kitsap Family Dentistry.

The building features an attractive exterior design with a craftsman style, northwest colors, and divided light fenestration. The interior design boasts earthy tones, warm wall coverings, stone accent tile on the walls and floors, with natural stained wood doors. The building is fully equipped with Cat-6 data wires and cable management system with computers/TV’s in each operatory for patients convenience and relaxation. It is a state of the art dental facility to ensure patients comfort and satisfaction.

The construction started in April and was completed in November. The project was completed under budget.

Local contractors/suppliers/designers working on the project include: The BJC Group Inc (general contractor), Abstract

investing in local economic development.

Poulsbo Mayor Becky Erickson has championed an idea to add a $5 surcharge on business license renewals and dedicate the revenue to the county-designated Associate Development Organization (a state-mandated designation, which is KEDA). Port Orchard Mayor Lary Coppola has also voiced his support for the plan.

This approach would both create a dedicated revenue stream for local economic development, and result in a cost savings for local government by removing this expense from their general fund.

Whether the plan will be adopted by these cities and others, I don’t know. But it is the kind of thinking we must encourage if Kitsap economic development is going to achieve a capability better than 16th in a state that ranks low nationally.

If there is opportunity in this funding environment, it is to enhance our competitiveness and service quality at a time when other communities (and states) are unable to do so. We fully intend to emerge better and stronger.

Blue Heron Jewelry moves to new, generously sized location

26 Kitsap Peninsula Business Journal•KPBJ.com January 2010

By Rodika Tollefson Employees and customers of Blue Heron Jewelry in Poulsbo received an early Christmas present at the end of November: The store moved down the street from its location to a new storefront that has expanded its space about 10 times. The move helped the business consolidate its retail space, office and workshop, which were previously under separate roofs.

Designer and owner Leo Fried has owned Blue Heron Jewelry for more than 20 years at its previous location on Front Street and says he’s been looking for a bigger space for a decade. Although many businesses are cutting back because of the economy, when he saw the new space become available, he decided it was the right time.

“It was a risk to move but business was good through the summer,” he says. “…This is a total departure from what we had

before. People love coming in here. It will smooth out customer service quite a bit.”

The roomy shop has a lot of open space, and a comfortable waiting area with cushy leather chairs and an iPad customers can use for their orders. The store selection includes jewelry designed by Fried as well as well-known design names such as Spark, Bellari, Sarah Graham and Bruneing.

Fried has been making jewelry for nearly 40 years. When he moved to Seattle from California more than 30 years ago, he started out by selling at the Pike Place Market. Those days, his workshop was in his living room. He opened his one-man Front Street shop 22 years ago and since then the business has expanded to include eight other employees.

As much as half of the jewelry at the store is made to order. It’s not unusual for a customer to bring an inherited ring in hopes to get something new designed with the stone. “With modern technology, we can

accommodate some intricate designs,” Fried says.

The casting process is the same that has been used through the decades but new forms of carving using computer-aided designs have emerged. “Over the last 20 or 30 years, there has been a great resurgence of the art of metalsmithing. That’s a good thing — it’s opened the door to new technology,” Fried says.

Blue Heron has an in-house computeraided machine created by another local jeweler. “It allows you to different types of designs and opens the door for more intricate things,” he says. The more complex designs can be sent to an outside company.

Fried says adopting new technology is part of the evolution of the art, “A traditional jeweler will stay with what he knows, but you have to adapt with the times.”

While trends change through the years, Fried finds that many of his designs are timeless. He has built a library of his own drawings and frequently goes back to it when he’s looking to create new jewelry.

As his shop grew, Fried’s had to give more attention to business matters but designing and making jewelry remains his favorite part. His style has been refined through the years as more things influence him, but his organic designs have remained a signature.

“I have strong influence in curvy, linear designs and draw inspiration from genres like art noveau,” he says. “A lot of it is from living in the country.”

He says design of a

piece of jewelry is always a work in progress, and the fun challenge is to take someone’s idea and turn it into something they’ll love.

The process of working with the metals has a meditative feeling, and Fried says if he’s in the workshop all day, coming out is almost disorienting. “If I work there all day, I’m in a different world,” he says.

An invitation-only open house and grand opening celebration was held on Dec. 2, to showcase the new facility, but the workshop was still waiting to be moved to the new location in mid-December, and Fried’s staff was still getting accommodated to their new work spaces.

Fried has been pleased with the customer response so far. Asked what his next dream for the business was, he says he’s just taking things one step at a time. “We’ll see what the future brings,” he says. “I consider myself lucky and thankful for the business we have.”

For more information, or to see samples of Leo Fried’s many custom designs, visit www.blueheronjewelry.com.

Kitsap Bank names Poe Employee of the Quarter

L-R Jenny Elliott, VP/regional operations manager; Emely Poe, Joann Johnson, operations officer Kitsap Bank has named Emely Poe as its Employee of the Third Quarter of 2010. Poe serves as customer service representative III at the East Bremerton branch.

“Emely is an exceptional employee,” commented Jenny Elliott, vice president/regional operations manager, “She displays dedication to the highest ethical standards and supports management goals by setting a leadership example in customer service, teamwork and productivity.

Gifford and Libba Pinchot named Purpose Prize Fellow Civic Ventures recently announced that Gifford and Libba Pinchot of Seattle are 2010 Purpose Prize Fellows. The Pinchot’s were recognized as social entrepreneurs over 60 who, in their encore careers, are using their experience and passion to make an extraordinary impact on society’s biggest challenges.

Now in its fifth year, the six-year, $17 million Purpose Prize program is the nation’s only largescale investment in social innovators in the second half of life.

The Pinchot’s were named Purpose Prize Gifford Pinchot Fellows because of their work transforming business education through the Bainbridge Graduate Institute (BGI), the pioneering graduate school they founded offering the first MBA in Sustainable Business. BGI prepares students from diverse backgrounds to build enterprises that are financially successful, socially responsible and environmentally sustainable. BGI’s mission is not only preparing its own students, but also helping other business schools integrate sustainability (i.e., environmental and social responsibility) into the heart of their programs. BGI has graduated over 400 individuals changing business for good across the country.

“Purpose Prize Fellows show what’s possible in our communities — and the world — when experienced adults apply their passion and skill to improve the lives of others,” said Alexandra Céspedes Kent, director of The Purpose Prize. “Imagine the potential for society if tens of thousands of adults focused their know-how on the social causes they are most passionate about — it’s a tremendous opportunity.”

For more information, visit www.encore.org/prize.

The Bloedel Reserve on Bainbridge Island will host its premier plant sale and open house on April 15-17. The sale will feature choice specimens propagated and grown at The Reserve, and plants from more than one dozen outstanding growers from the Pacific Northwest region.

The event will include well-known speakers, including renowned plantsman Dan Hinkley, as well as demonstrations and children’s activities in the lovely Bloedel Reserve gardens.

The event will open with a pre-sale event for Bloedel Reserve members on Fri., April 15 from 4 -7 p.m. The public sale will be on Sat., April 16 from 10 a.m. until 5 p.m.; and Sun., April 17 from 10 a.m. until 2 p.m. The Reserve will be open to the public on both days free of charge. The customary entry fee will be waived to encourage firsttime visitors.

By Dan Weedin In November, I watched the 1990 Ken Burns documentary, The Civil War. I was fascinated with the military, political, and social strategies.

From that series, I developed several “teaching points” gleaned from this historical time. You read the first three last month.

As promised, here is Part 2 with three more lessons from the war that you can use in building your business, accelerating your growth, and enhancing your leadership.

This time, we focus on flanking attacks, emotion over logic, and the success trap.

1) Flanking Techniques — General William Tecumseh Sherman is famous for his epic march through Atlanta to the Atlantic Ocean. However, the taking of Atlanta wasn’t easy. It took months of hard work and strategic flanking to overcome the Confederate army. Sherman kept up the persistent flanking of his enemy and their stronghold to eventually wear them down.

He kept working on the outside; putting pressure on the edges, until finally he could march into Atlanta victorious.

Client acquisition is analogous to flanking your enemy on the field of battle. Only in this case, you don’t need any cannons or guns.

The keys to acquiring clients are amicable persistence, a consistent message, and tremendous value. “Flanking” in your case involves providing value-added information on a regular basis, covering all aspects of your prospect’s needs. Just like General Sherman was persistent on surrounding his enemy, you must be persistent in surrounding your prospect with value.

Note — Your objective is not to wear your prospect out. Your objective is to have them say, “Wow. If I get this much value from Joe for free, I wonder what I would get if I paid him!”

2) Emotion Over Logic — There’s an old business catchphrase that reads, “Logic makes people think, emotion makes people buy.” The Northern states weren’t “buying” the war early on, yet the South was. For the South, this was a war of Northern invasion.

The Union army was coming on to their land. They were defending their family, their land, and their way of life. It wasn’t The Reserve’s share of net proceeds from the sale will support the purchase of plant material for restoration projects in its award-winning gardens.

For more information, visit www.bloedelreserve.org, or call (206) 842-7631.

Reduce Reuse Recycle

until President Abraham Lincoln gave his Emancipation Proclamation, that the North felt like they had a purpose bigger than simply saving an 87-year old country.

Does your marketing speak with a “rebel yell” to your prospect’s emotions, or is it simply logical? Is the language you use arousing fervor in your product or service, or does it stir disinterest? People are driven by emotion to buy services and products that they think they really need.

3) The “Success Trap” — As stated in Part 1, Robert E. Lee was a brilliant General.

In the end, maybe a little too brilliant. Lee found great success early in the war. He repeatedly defeated larger and betterequipped Union forces in defending the Confederate capital of Richmond.

Historians will claim that this success lulled him into a false sense of invincibility.

Confidence is one thing; arrogance is quite another. Lee became so enamored with his success that it cost him dearly when he moved forward on a small town in Pennsylvania named Gettysburg. He had fallen into what renowned management consultant, Alan Weiss coins, the “success trap.”

In business, success can be both good and bad. On the positive end, you gain cash flow, you increase confidence, and you enhance your brand. All things seem to go swimmingly over a period of time. The bad is that without you really knowing it’s

happening, you can become complacent and fall into a false sense of security. If you’re not careful, it can catch you at the worst possible time, just like Lee in Gettysburg. Factors outside your control, be it an economic downturn, a worthy competitor, or a fire to your building, might be the flame that ignites your own misstep into the success trap. Or, it might be as simple as that one day, you are no longer relevant.

With each success, consider you are starting over on the ground floor of a next challenge. Never be satisfied with where you are. Be confident, be happy, and be positive, but never stop challenging yourself and your organization to be on the leading edge.

Educators have always held that we can learn from our own history. I maintain that we can apply it to many different areas of our lives. In the case of the Civil War, I hope these strategies from 165 years ago will help you accelerate your business.

(Editors note: Dan Weedin is a Poulsbobased management consultant, speaker, and mentor. He helps entrepreneurs, organizations, and small business owners to create dramatic results through leveraging the power of relationships. He is one of only 27 consultants in the world to be accredited as an Alan Weiss Master Mentor. You can reach Weedin at (360) 697-1058; dan@danweedin.com or visit the web site at www.DanWeedin.com.)

January 2010 Kitsap Peninsula Business Journal•KPBJ.com 27

Bloedel Reserve to hold first ever plant sale in April

Business Lessons from The Civil War: Part 2

28 Kitsap Peninsula Business Journal•KPBJ.com January 2010

Mitigating the challenges of shift work

By Julie Tappero, President West Sound Workforce On Christmas Eve, Santa and his elves weren’t the only ones working a night shift!

They could be counted amongst the approximately 15 million people in the United States doing shift work and working all hours of the day and night.

We typically think of night workers as working in security, transportation, or manufacturing jobs, but the truth is, in our fast-paced 24/7/365 world, shift workers can be found in all professions and industries. Health care professionals, hotel workers, IT professionals, call center employees, grocery workers, pharmacists … the list is endless. The fact is, any one of us could find ourselves tomorrow working in a position that required us to do shift work, including working the graveyard shift.

The reality is, there are more shift workers today, than ever before. You may very well have shift workers in your business. What is a shift worker? It is commonly defined as anyone who works outside the hours of 7 a.m. to 6 p.m.

There are many variations of shifts. The common shifts are days, swing and nights. However, creative options include 10 or 12 hour shifts coupled with several days off in between, Twenty Four hour shifts, and even people working 7 or 10 days in a row.

Since the industrial revolution, researchers have been studying shift work and its impacts on workers. Many studies have been conducted, and it’s pretty clear that shift work can be tough on employees. The Bureau of Labor Statistics states that shift workers are more likely to be injured on the job. The likeliest times for accidents occur between 3 a.m. and 6 a.m., followed by midnight to 6 a.m.

Several studies have also shown that shift workers may be more prone to chronic illnesses and health conditions.

There are indications that they may be more likely to be obese, have gastrointestinal disorders, higher

incidence of diabetes and cardiovascular diseases, and are more likely to suffer from depression and other mood disorders. Getting adequate sleep, eating properly, and getting exercise and recreation are more difficult for people working odd shifts, all contributing to the aforementioned ailments. In addition, divorce is more prevalent, as couples struggle to cope with the family life imbalances that shift work creates.

We all agree that our employees are our most valuable asset. And employees can also be one of our most expensive assets, when you consider recruiting costs, salaries and benefits. If your business depends on shift work, or benefits from adding shift work, what can you do to mitigate the negative impacts on your employees?

The Fair Labor Standards Act and Washington law do not require businesses to provide additional compensation for shift work. However, many companies pay a shift differential, in recognition to their employees of the toll that shift work takes on them. This is a great starting point, but there's more that you can do to help keep your employees healthy, happy and safe.

Keep overtime and shift variances to a minimum. Shift workers already have difficulties with sleep patterns, and a schedule that is unpredictable for their families and friends to cope with. Often, it’s hard for shift workers to eat meals at regular times, and to fall asleep on a regular schedule. This makes it difficult for their families to plan when they can all be together. Shift workers have to be more diligent to schedule activities with friends, as their friends are usually working when they are off work. If their schedule is made more difficult by last minute overtime and shift changes, it creates additional stress on the employee and their relationships.

You can protect your employees’ safety by taking added measures to create an environment that helps everyone stay alert. The lighting needs to be bright enough to compensate for lack of natural daylight. Consider the level of noise in the room. A quiet work area, or one with

low humming noises, will increase the tendency to feel sleepy. Playing peppy music and increasing the intermittent noise level will facilitate an energetic environment. Pay attention, too, to the room temperature. Having fresh air, or cooler air, will help workers feel refreshed and alert. The warmer the environment, the less alert they may feel.

Realize that night shift workers may need to break up monotonous tasks more than those on the day shift. If they are doing physically demanding or dangerous work, you want them doing it when they are at the most alert point during their shift. Giving your employees a little more say on how they structure their work, in order for them to keep safe and alert, may help to prevent injuries.

Try to incorporate some team-oriented tasks, so they have opportunities to work with other people.

Night shift workers may have some needs that your day shift does not. A couple ten minute breaks may not be sufficient for them to re-energize themselves. They may need time to take a brief walk outside in fresh air, or to do some quick exercises to energize their bodies and wake themselves up. This may very well be to your company’s advantage — after all, if your employee is able to concentrate fully on their work, their overall productivity will rise.

Remember that your shift workers may not feel as connected to the company as the day shift does. They may miss out on communications, be left out of staff meetings, and not have contact with key members of management. If you want them to follow all company policies, they need to feel connected and valued. Consider having members of management come in periodically during other shifts to talk with employees about what’s going on in the company, and to hear their ideas and concerns.

A lot of company communication happens in an informal way. We may no longer have the proverbial water cooler, but the casual chat that occurs during our workdays can be a valuable communication tool. It also helps to build a spirit of camaraderie, which is

important for employee morale and loyalty. Your shift employees need this as much, or more, than the day shift employees. You may want to create some special social get together for them. At the least, be sure that they have the ability to attend company social events and important meetings.

There are many resources on the internet to help you and your employees create a positive and safe environment for them when they are working on the second or third shift. Among them are OSHA and the Centers for Disease Control and Prevention, who provide tools for employers and employees alike.

Provide your employees with information about protecting their physical and emotional health. Provide your supervisors with the additional skills they need to manage shift workers, and implement feedback and measurement systems that ensure that the shifts are meeting the company’s goals and providing for the workers’ wellbeing.

Santa might have a heck of a big job to do every Christmas Eve, but he only has to work one night a year, and everyone gives him free milk and cookies — which has to take the sting out of his tough schedule a bit, don't you think? If you have night shift workers in your employ, they need more than milk and cookies.

Paying attention to their special needs will not only help them work more efficiently, but will also show them that you appreciate what they sacrifice by working at night.

(Editor’s Note: 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.

View her LinkedIn profile at www.linkedin.com/in/jtappero.

The recommendations and opinions provided are based on general human resource management fundamentals, practices and principles, and are not legal opinions, advice, or guaranteed outcomes. Consult with your legal counsel when addressing legal concerns related to human resource issues and legal contracts.)

In these uncertain economic times, West Sound Workforce can meet your changing needs — with local, flexible and immediate staffing solutions.

Kitsap County

Gig Harbor Office

(360) 394-1882

(253) 853-3633 www.westsoundworkforce.com

In My Words… between them. They are even organizing a tournament and I'm confident these two will remain in contact on a personal level. Website work is coming along nicely too...

Helping others is an important piece of building quality and sustainable relationships. By acting as a giver versus a taker, you will be highly regarded in business circles and your network.

Below are a few ways to help others, which will elevate your personal brand: Make Introductions (as in the example above) — One of the best ways to build your network is to introduce people to each other. By doing so, you can help someone grow personally or professionally. If you especially help someone find a job or new customer, then they will be grateful to you.

Perform Research — As you get to know people, find out their needs. If someone is looking for some information, then offer to help with the research. This is where you, and they, can both benefit from some of the relationships you already have.

Acknowledgement — Whenever an opportunity presents itself to thank or acknowledge someone publicly, take the time to do so. Your good gesture will not go unnoticed.

Those that were acknowledged will feel appreciated and will be more dedicated to you.

As an active relationship-builder, networking is one of the major parts of my life. In fact, a day doesn’t go by that I am not connecting with someone whether it is in person, on the phone, via Facebook or email. Below are ten reasons networking works for me: 1. Opportunities to help people 2. Meeting new and interesting people 3. Finding synergies with people whom I meet 4. Business development opportunities 5. Connecting people with each other 6. Writing and speaking opportunities about networking 7. Leveraging my existing network 8. Hosting networking events 9. Acting as a resource for people 10. I’m never alone because I’m always communicating with someone People like me spend a lot of time meeting

Five ways to help people remember you (in a good way!)

Have you ever attended a networking event, collected a bunch of business cards, and when you go through them the next day, you can't remember who many of them are? Or try to think of someone you met and had a conversation with, but you can't remember their name or their business?

It's all well and good to pass out business cards, but if people don't remember you, they won't be calling to follow up, and they certainly won't think of you for their future needs.

Here are five tips on how to make yourself memorable (in a good way) when meeting other people face-to-face: 1. Be distinctive.

A brightly-colored, hand-painted tie, an unusual necklace or other jewelry, a good (but not overpowering) cologne, even just impeccable grooming can all help you stand out in a good way. Anything that helps people separate you from the crowd helps them remember you.

2. Be fully present.

Be fully engaged and fully aware of the people you meet. Break this down into smaller, somewhat mechanical pieces — listen well, respond promptly, maintain eye contact, etc.

— but if you are truly present in the moment, those things will happen naturally.

new people and managing our existing relationships. Why is it that we do this? What is in it for us? Here are a few reasons to consider: To Build a Support System — When we have challenges in life it is important that we have a support system of trusted people who we can go to for advice. Also, this support system is great for sharing good news.

To Develop Friendships — One of the benefits of building quality relationships is that many of these people become friends.

It is important to always grow your sphere of people in your life.

To Have Sense of Accomplishment — With networking, you should always be finding ways to help others. Therefore, you will feel a sense of accomplishment when you positively help someone.

To Demonstrate Your Expertise — The more we develop relationships, the more people

will see us as ‘subject matter experts’. You need to share with people what you know so they can make introductions and provide opportunities for you.

Today, pick a FIRST STEP toward more confident networking. What do you want to do, why, and how are you going to network? That step could be as small or as large as you choose.

Find a networking opportunity through your Chamber of Commerce, or other area organizations and jump right in. I’ll be honest: it was terrifying the first few times, but then it got really fun. The benefits outweighed the risks.

What would your first step be? Determine what works for you, and run with your next working experience.

Stay tuned in January for the launch of the Mindy and Mike Show on 1180 AM KLAY Radio. Contact Byers at mindy8221@gmail.com.

“Bill Hoke’s workshop for our nonprofit organization was just what the doctor ordered. Great action steps for staff and board!”

— Kate Mills, Executive Director Smile Partners, Bainbridge Island

START OFF THE NEW YEAR WITH CLEAR COMMUNICATION TACTICS AND ACTION STEPS FOR YOUR NONPROFIT

Sales & Marketing Planning • Media & Community Relations for retail, service, professional & non profit organizations

360-271-9448 • 5 Ways, page 30

hoke@hokeconsulting.com

January 2010 Kitsap Peninsula Business Journal•KPBJ.com 29

By Mindy Byers “You look really familiar, are you on Facebook?” She turns to me and smiles and the conversation begins.

This is another networking opportunity that I like to approach as if I’m in a party.

I always tend to go to the people who look the most uncomfortable, based on their eyes and their body language. My mission is to put them at ease by offering them something to eat or drink (even if I’m not the host), or to engage them in basic conversation. This is the beginning of the relationship-building process in which connections are made. These connections may someday turn into professional opportunities or simply remain a friendship. Either way, we both will have learned something that we didn’t expect.

When in a networking situation, put aside the “What can I get out this is” attitude and take a look at the big picture: Community, Professional then Personal. Think about the relationship-building process as an education.

Listen and actively engage in the conversation.

Soak up as much knowledge as you can. You never know who you will meet or when the information you’ve gained, will become valuable. Focus on the other person — During your conversation, let the other person talk so you can get to know them. This person will feel appreciated and will want to get to know you too, which can happen after the event.

I've decided to focus my attention on a person’s personal interests first, business interests second. As an example of the way I think.

Earlier this week I introduced my business partner to a friend who is a website designer (because we needed help setting up a new site).

We only had a small amount of time to go over some ideas, so we had to be focused. I made the introduction only mentioning some of their basic interests and they discovered that they both enjoyed playing racquetball. The next 40 minutes was a fantastic bonding session between the two. Although we didn't get through the work we needed too, you couldn't put a price on the relationship that formed

Mastermind groups gain popularity

By Rodika Tollefson When bestselling author Napoleon Hill wrote about the idea of a Mastermind in his books “Think and Grow Rich” and “The Law of Success,” he defined it as “coordination of knowledge and effort, in a spirit of harmony, between two or more people, for the attainment of a definite purpose.”

“Economic advantages may be created by any person who surrounds himself with the advice, counsel, and personal cooperation of a group of men who are willing to lend him wholehearted aid, in a spirit of perfect harmony. This form of cooperative alliance has been the basis of nearly every great fortune,” he wrote in “Think and Grow Rich.”

Hill was greatly influenced by famous businessman Andrew Carnegie, who believed Mastermind groups were a key ingredient to success. Other successful people through the centuries, including Benjamin Franklin, used similar concepts to aid in their success.

Although Hill’s book was originally published in 1938 (and has since sold millions of copies) and business practices have changed since the times of Carnegie or Franklin, modern businesspeople have

taken that concept to heart. Mastermind meetings have been growing in popularity in recent years, bringing together small groups of likeminded entrepreneurs interested in learning from each other.

Although professional companies such as Vistage have taken the concept, and turned it into a for-profit business, no official Mastermind organization exists.

However, small local groups are adopting similar formats: Meeting regularly one or several times a month, members discuss a topic relevant to their businesses and often present their real-life business challenges and ideas in order to receive input and feedback from the others.

John Wheeler, who facilitates a group that currently meets in the Gig Harbor area, says there is no set formula for a Mastermind group and it’s up to the facilitator to set the stage. For his group, he alternates presentations on specific topics with Mastermind sessions. Wheeler, who owns Tacoma-based BizNetCentral, has been leading business groups for many years, and he frequently draws on his own expertise to lead the group. Other times, he’ll ask business owners to share challenges so they can receive input.

30 Kitsap Peninsula Business Journal•KPBJ.com January 2010

— Calling for Entries —

Doctors Making a Difference Do you know a doctor on the Kitsap Peninsula (Bainbridge Island to Gig Harbor) who is making a difference in the lives of their patients?

WestSound Home & Garden magazine is looking for doctors who are making a statement with new technology, or providing unique solutions — doctors with a special talent for children, or providing compassionate care for the elderly, etc.

In the 2011 issues of WestSound Home & Garden magazine, we will publish profiles of "Doctors Making A Difference!"

Go Online and Nominate! www.wshomeandgarden.com Click on “Doctors Making a Difference”

He said the goal of the group is not networking but that happens by default.

“Sitting there talking about your business every week builds intimate relationships — you get details about each other that you don’t get at other club meetings,” he said.

“People do business first with people closest to them.”

Wheeler believes the Mastermind meetings are attractive because they give entrepreneurs the opportunity to be proactive about their businesses. “They’re looking for ideas and support, and for the camaraderie,” he said.

Local author Patrick Snow and networking professional Mary West have been coordinating a Master Mind Monday group in Poulsbo for about two years. The group, which meets at Taprock Grill every first and third Monday, has about 12 regular participants and some sessions draw as many as 30. The meetings usually include a guest speaker, a brief introduction opportunity for each person, and a business tip along with

feedback and ideas. A few sessions have included the more traditional Mastermind format that gave business owners the opportunity to solicit input from their peers.

“The goal of the group is to help each other build deeper connections and help build each other’s business,” said West, who is the senior vice president of The Snow Group.

West is in the process of starting a new Mastermind group and plans to use Snow’s idea described in his “Creating Your Own Destiny” book to list the five most talented entrepreneurs you know when creating a new group. She said the goal is to have a setting that’s mutually beneficial for all members so everyone can learn something.

“Mastermind groups are awesome because you share ideas, come up with new ideas, the people in the group are committed to the process and helping other grow, you get feedback and give feedback and you have accountability partners,” she said. “…

Sharing ideas is like having another mind.”

How Social Networking Has Changed Business

By Bill George Social networking is the most significant business development of 2010, topping the resurgence of the U.S. automobile industry.

During the year, social networking morphed from a personal communications tool for young people into a new vehicle that business leaders are using to transform communications with their employees and customers, as it shifts from one-way transmission of information to two-way interaction. That's one reason Time magazine just named Facebook founder Mark Zuckerberg Person of the Year.

A year ago, many people poked fun at Facebook as a place where kids shared their latest party news. Today more than 600 million users worldwide are active on the site. The most rapidly growing demographic is people over forty. More than 300 million people spend at least one hour a day on Facebook. Approximately two hundred million people are active on Twitter in spite of — or because of — its 140-character limitation. Another 100 million use LinkedIn. None of these social networks even existed at the beginning of the decade.

Leaders like IBM's Sam Palmisano, PepsiCo's Indra Nooyi, Apple's Steve Jobs, Microsoft's Steve Ballmer, Carlson's Marilyn Nelson, and Harvard Business School Dean Nitin Nohria are all active social network users. Why? Because these social networks are a unique way of broadly communicating real-time messages to the audiences they want to reach. They can write a message anywhere, anytime, and share it with interested parties without any public relations meddling, speech writers, airplane travel, canned videos, or voicemail messages. Now their words are much more

authentic and empowering.

can

be

remarkably

Networking, page 31

5 WAYS from page 29 3. Ask thought-provoking questions.

"How did you get started?" or "What do you enjoy most about what you do?" are both good opening questions, and things will flow from there. As Dale Carnegie suggested, you must "take a genuine interest in other people."

4. Reinforce your keywords.

People aren't going to remember long descriptions of what you do, or likely even that 15-second intro that many experts teach you to make. People will at best remember a few key things about you: • Your name • Your company name • Your business/industry (in three words or less) • Your product • Your location What you want to do is find ways to unobtrusively increase the occurrence of these things in conversation. For example, is there some kind of unusual story behind your name or that of your business? Have it ready if there's an opportunity. Refer to your place of business when telling an incident that occurred ("I was driving down 17th Street leaving my store, when...").

5. Contribute to the group conversation.

Don't hog it, and don't say just anything in order to say something publicly, but saying one really smart thing at your table or in front of the whole group will make you much more memorable than half an hour of semi-conscious small talk.

New Gig Harbor business group caters to women

By Rodika Tollefson A newly created group in Gig Harbor has been meeting for several months, attracting business owners from as far as South Kitsap and Tacoma. The focus of the group, called Alliance of Women Owned Businesses, is on education, but members say they have been enjoying one of the side benefits: networking.

The nonprofit association is focused on women who own businesses, but anyone is invited to join and attend the meetings, from students to organizations as well as men. Membership, which began to be offered this past fall, is available in several categories including business supporter.

“There’s something about the idea of gathering with other women. It’s an enlightening experience,” said Mary Gorman, a Realtor with RE/MAX Professionals in Gig Harbor. She said she likes the group’s unique mission — to help develop businesses — but she likes being able to meet new business owners.

NETWORKING

has attended many networking groups yet the Alliance of Women Owned Businesses fit her perfectly. She likes the idea of having many people from the same industries, which takes away any competitive edge.

“It’s a wonderful resource… Everyone is very supportive,” she said. “In other networking groups, you get credit for referring other businesses and that’s part of the meeting so you feel the pressure all the time. In this environment, you don’t feel that pressure yet it happens naturally.”

Tappero said while networking is not a focus, there has been so much interest in it that the idea of social events is being explored. One social event, a holidaythemed December gathering, brought in a lot of positive feedback, along with eight new members. Other programs the committees will explore include Master Mind sessions. A pilot session in the fall brought a roomful of women, and now that memberships have brought in some income, the alliance can look into hiring a professional facilitator for future sessions.

Tappero’s dream is to involve women from various businesses as the organization grows. “I’d like to attract women with established businesses so they can mentor women with small and new businesses,” she said. “We need to find a way to attract them and show them we have something for them too.”

Already, several seasoned business owners have been attending meetings including a Gig Harbor woman whose business turned 30 years old. Among the longtimers is Kristy Ewing, a Port Orchard graphic designer who owns Ewing Creative and has been in business since 1980. Ewing, who became a member, said she was intrigued by the mission of helping women in business.

“In many ways, we could mentor each

other — those of us who’ve been in business for a while could help others,” she said. “After you’ve been in business long enough, you realize you don’t know it all and there’s always room to grow and improve. “ AWOB currently meets every second Wednesday of the month from 4 to 5:30 p.m. at Wesley Inn in Gig Harbor. Once committees are formed, Tappero said other meeting options will be explored, including alternate times and possible locations in Tacoma or South Kitsap, to cater to the diverse membership interests.

For more information about the group, search for Alliance of Women Owned Businesses on Facebook.

January 2010 Kitsap Peninsula Business Journal•KPBJ.com 31

from page 30 Social networking is also flattening organizations by distributing access to information. Everyone is equal on the social network. No hierarchies need get involved.

The biggest threat presented by social networks is to middle managers, who may become obsolete when they are no longer needed to convey messages up and down the organization. The key to success in the social networking era is to empower the people who do the actual work — designing products, manufacturing them, creating marketing innovations, or selling services — to step up and lead without a hierarchy.

Consumer marketing companies are lining up to use these networks to reach their tailored demographics with highly personalized messages. Already they are revolutionizing marketing by shifting dollars from purchased media advertisements to building their own outlets and content. Kraft Foods, for example, is now one of the largest publishers of food-related materials. IBM is launching thought leadership communities. PepsiCo uses social networks to reach millions of social entrepreneurs in lieu of advertising at the Super Bowl. From a leadership perspective, social networking is making authentic leadership a reality and a necessity for 21st century leaders. You can't hide on your social network when you're revealing who you are and what you really believe.

Transparency is essential here.

Even more important, this new phenomenon is enabling business leaders to regain the trust and credibility they have lost over the last 10 years. That's why social networking is the most important business development of the year.

Bill George is Professor of Management Practice at Harvard Business School.

“It’s a great platform for women to be connecting with other women,” she said.

“I’m seeing a lot of new faces.... It could be a springboard for people not normally involved in other groups. I think it will be a door opener for other women.”

Julie Tappero, owner of West Sound Workforce and one of the co-founders of the alliance, got the idea for the group after attending a women’s business meeting in Seattle. She said she was so inspired by how much the women supported and inspired each other, she wanted to see a similar effort closer to home. She envisioned a group where women can mentor each other and where the goal was on helping businesses grow.

Early last year, she sent an email to other local women entrepreneurs to see if anyone else was interested.

The first meeting in spring brought about 15 women, and a task force began working on creating a formal organization.

The group began bringing speakers last May, with attendance ranging from about 30 to 60-plus. More than 50 members officially joined AWOB since membership was open in September.

“We’ve been growing real steadily,” said Tappero, who was recently elected president. The members were expected to vote on the bylaws in January and the group was in the process of creating various committees, ranging from social media to member engagement.

“Then we’ll have our structure in place and our goal will be to have more people involved,” Tappero said. “We’ll need to wrap up our program (development) and formalize the benefits.”

Interest has been strong so far, and organizers believe they have tapped into a niche. Jeannine McCurrie, a public speaker and advocate for life insurance who started her new business, Plan B For Your Life, less than a year ago, said she

January @ Port Orchard 2011 The Port Orchard Chamber of Commerce is a membership based organization of businesses and individuals working together to promote a favorable local business climate, encourage strong community leadership and support quality of life.

HAPPY NEW YEAR! I hope that your holiday season was safe Desiree Steffens and happy. The Port Orchard Chamber New Year 2011 2010 President rings in with some challenges regarding our economic forecast. We as business owners will have to become creative in how we do business. The Port Orchard Chamber is a membership based organization of businesses and individuals and our mission is to work together to promote a favorable local business climate, encourage strong community leadership and support quality of life. Throughout the year we work to bring you educational, interesting and informative speakers and presentations at our monthly luncheons and useful, hands on business development information at our free monthly morning seminars. Additionally, our Legislative/Government Relations Committee provides community affairs forums, legislative receptions, candidate’s forums and legislative conference calls. A schedule of upcoming conference calls with legislators from our 26th and 35th district is further in this newsletter.

We are very pleased to have our WA State Chief of Staff Jay Manning as our January 13th luncheon speaker. Make your reservations today at www.portorchard.com to welcome Mr. Manning to his native South Kitsap. February 10th, local author and educator Randy Spitzer will present on” Creating a Responsibility Culture,” March 10th, Stephanie Smith and John Carlson from Kitsap Physical Therapy will present “Wellness at the Workplace” and April 21st we are pleased to have WA State Attorney General Rob McKenna joining us as our speaker. May 12th will bring former NBA professional, author and businessman James Donaldson. Mark your calendar now for these great luncheon meetings.

The Port Orchard Chamber also encourages you to think ahead about joining us in our Annual Business Showcase on May 19th. This annual event is also when the Best of SK Awards are presented-watch for ballots in the Port Orchard Independent starting in February!

We hope that 2011 is a successful new year for you.

Let your chamber work for you and make every day a special day.

Chamber Morning Seminars

President’s Message

Wednesday, January 19th at the Port Orchard Pavilion. Topic to be announced. Please check our website at www.portorchard.com or call the Chamber at 360-876-3505.

2011 Legislative Conference Calls Port Orchard Chamber Legislative Committee presents Legislative Conference Calls with our WA State Legislators from the 26th and 35th Districts during the 2011 Legislative Session. Join us at the Port Orchard City Hall Council Chambers at 216 Prospect St. beginning at 7:30 a.m. At each meeting we will receive an update from one of our Legislators. Check our website at www.portorchard.com for details / schedule: Wed. Jan. 12th; Wed. Jan. 26th; Wed. Feb. 9th; Wed. Feb. 23rd; Wed. Mar. 9th; and Wed. Mar. 23rd.

4th Annual WestSound Business Expo Registration is now open! This very popular business event is Thurs.

Feb. 17th, 2011 at the Kitsap Pavilion at the Kitsap Fairgrounds and is coordinated by the 8 regional chambers. Vendor space is going fast — Chamber members reserve today! Go to www.westsoundexpo.com or call the PO Chamber at 360-876-3505.

WELCOME NEW MEMBERS Corner Deli • Annette Stewart 639 Bay St., Port Orchard, WA 98366 360-876-1822

Chamber Member Event Sponsorship Program Our Event Sponsorship Program provides excellent sponsorship and advertising opportunities throughout the year. Your business sponsorship will provide you visibility prior to and during our special events. Bronze $500 level also available. Call the Chamber office today to participate.

• One “2, 2 & a Table” Luncheon Sponsorship (Includes two lunches, two minutes at the podium and a table for marketing display)

GOLD $3,000 • Rotating Flash Banner on Chamber website (The Chamber website receives over 128,000 page views per year!)

• Small “Button” Banner on Event page of Chamber website • Premier Display Space at ALL Chamber Events/ Festivals including annual Business Showcase

• Business Logo (Business card size) included in each monthly E-Newsletter

• Business Logo on 12 foot Sponsor Banner (displayed at all events) • Business Logo on Event Street Banner (displayed in downtown Port Orchard across Bay Street, two times a year)

• Two Emails sent to the Chamber membership on your behalf • Premier Sponsor Table for 8 at the Chamber’s Annual Installation Banquet • Gold Event Sponsorship Plaque

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32 Kitsap Peninsula Business Journal•KPBJ.com January 2010

www.portorchard.com 360-876-3505

January General Membership Meeting Thursday, January 13th, 2011, 11:30 a.m.

Location: McCormick Woods Banquet Room Program: Jay Manning, Chief of Staff to Governor Gregoire Join us in welcoming SK native Jay Manning to Port Orchard as he brings us a Budget and Planning Update, and discusses the next steps to support economic reinvigoration by transforming state government, making it more efficient and effective. Once we navigate the precarious circumstances of this budget crisis, is there a bi-partisan solution to building a foundation that both encourages economic restoration and can sustain the vital partnership between state government services and functions?

Jay Manning was appointed Chief of Staff to Governor Christine O. Gregoire in 2009. He works closely with the Governor, her Senior Staff and Cabinet on all facets of state government. He chairs the Governor’s Cabinet, and her Sub-Cabinets on Job Creation/Economic Development, Natural Resources and Energy and Climate.

Prior to his appointment as Chief of Staff, Jay was director of the Washington State Department of Ecology (Ecology). The Department of Ecology is the state’s primary environmental agency and while Director, Jay focused the agency’s efforts on restoring Puget Sound, reducing emissions of greenhouse gases, improving water supplies and streamflows, better protecting wetlands and reducing the threat to people and the environment posed by toxic chemicals.

Before coming to Ecology, Jay spent six years in private law practice, most recently as the managing partner of Brown, Reavis and Manning PLLC. From 2000-04, Jay was president of the Board of Directors for Washington Environmental Council. Before that, he spent 15 years working as an assistant attorney general, including nearly six years as head of the Ecology Division.

Reservations are necessary to attend the Chamber Luncheon meetings and can be made online at www.portorchard.com or by calling the Chamber at 360-876-3505. Please make your reservation by January 11th. Membership Luncheons are open to members and non-members.

Chamber members pay $20 if prepaid and $22 at the door, non Chamber members pay $22 and must pay in advance.

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Winter storms turn region's roads into rivers, strand motorists, and wreak general havoc on the environment and crested at about 18 feet. The Snohomish River followed a similar path, cresting at major flood stage around 19 feet near Snohomish and Monroe. The Snoqualmie River was expected to crest in Carnation while officials closely watched the Skagit River in Skagit County.

A rash of sunken boats and oil spills prompted the Washington state Department of Ecology to remind boaters to properly maintain their vessels.

Winter weather, unrepaired leaks and other poor maintenance can cause boats to sink and trigger fuel spills that can harm marine life. In the last two months, Ecology received more than 45 reports of oil spills and sheens involving recreational boats and commercial fishing vessels. Most were a result of inattention as the boating season wound down, according to Ecology.

On Dec. 20, the Scout, a 62-foot wooden yacht with approximately 600 gallons of diesel fuel on board, started to sink in heavy seas near Neah Bay in the Strait of Juan de Fuca. The crew managed to get away from the flooding yacht in an inflatable skiff. Crew members were safely picked up by a nearby fishing boat. “Preventing spills and promoting safe maritime practices are our top priorities.

Especially during the holiday season, we need all ships and vessels in Washington to take necessary precautions to operate safely and follow maritime safety standards,� said Dale Jensen, Program Manager for Ecology's Spill Prevention, Preparedness, and Response Program The rains aren't over; Western Washington will expect to get more rain in January and February. People think that hurricanes are what do the most damage, but in flood-prone areas with mountainous terrain and deforestation, it's not the size of the storm, it's how long it stays and how much rainfall it brings that dictates the severity of a storm's devastation. The slowmoving storm does the most damage causing massive flooding and rain-soaked hillsides.

Across the Northwest homes are in danger of sliding away as persistent rain loosens soil on hillsides. More people are evacuating after their homes started to slide.

In many cases, if the homes are destroyed, many families will have to pay for repairs out of their own pockets; as homeowners policies do not cover damage from mudslides.

Mudslides are covered only if they are driven by flooding, and the mud rises up from a creek or river bed into a home.

The Northwest has weathered earthquakes, wildfires, floods, ice storms and powerful windstorms. But the deadliest natural disasters have been slides. And each year the risk of death, injury and catastrophic property damage rises as more residents seek wooded retreats and valley views in the rainy hills.

The problem, some say, is that people forget what happens when it rains for weeks on end, the ground swells with

water and hillsides let loose.

The Seattle Red Cross reports that landslides are a serious geologic hazard common to almost every state in the United States. It is estimated that nationally they cause up to $2 billion in damages and from 25 to 50 deaths annually. Globally, landslides cause billions of dollars in damage and thousands of deaths and injuries each year.

Washington State Department of Natural Resources (DNR) and its Urban & Community Forestry Program remind people that proper tree care can reduce hazards during storms. Trees that are neglected or improperly pruned can fall or shed limbs during storms, causing power outages, property damage, and injuries or deaths.

Proper care is to prune the dead or weakened limbs on trees and thin excess branches from the crown. Trees that are pruned regularly should be more resistant to storm damage. Proper pruning, including removal of structurally weak branches, decreases the surface area of lateral branches, which reduces wind resistance.

DNR urban foresters also urge caution when dealing with the aftermath of a storm. Saturated soils can lead to damage to the tree roots. Stormdamaged trees may have broken limbs that can fall later or come into contact with power lines.

Having trees inspected by a certified arborist can ease fears and eliminate unnecessary damage in storms. To find a local certified arborist, log on to www.treesaregood.com.

January 2010 Kitsap Peninsula Business Journal•KPBJ.com 33

By Kathleen Byrne-Barrantes Winter had officially arrived at the passing of the solstice Dec. 21, and Washington had already experienced recordsetting floods and snowfall, freezing temperatures, gale-force winds and major storm systems that downed trees and power lines, causing power outages, and polluted runoff washing into area streams and rivers.

Record rainfall pounded the Pacific Northwest turning roads into rivers, delaying trains, blowing out culverts, washing out bridges, and strangling expressways from Shelton to Bellingham.

There are thousands of people affected by the series of storms that have hit this past month as hundreds of homes are affected by the slides, loss of power, or flooding.

Manhole covers blew off, sending waterfalls coursing across roadways and road closures threaten local commerce during the busiest shopping season of the year.

Roads employing Low-ImpactDevelopment stormwater strategies fared very well, however, as seen along Viking Way in Poulsbo.

Seattle-Tacoma International Airport set a rainfall record for the date of 1.42 inches, breaking the old mark for Dec. 11 of 1.32 inches set in 1955. Quillayute on the Pacific Coast also had a record for the date, 2.17 inches. The old record was 1.64 inches, set in 2002.

The National Weather Service reported that the Chehalis, Snohomish, Tolt and Snoqualmie rivers would reach flood stage.

Slides blocked a street in Seattle and closed State Route 11, the scenic Chuckanut Drive, south of Bellingham.

"We're looking at the wettest storm system we've had in almost two years," said National Weather Service meteorologist Kirby Cook in Seattle.

As storms overwhelmed small stormwater and sewer systems, water found its level by surging into roads and floodplains. Down in parts of Mason County, the scene created by salmon crossing roads was not uncommon.

Frustrated motorists attempted to course down deep pits of murky water near the town of Snoqualmie, when 4 inches of rain had fallen in about 30 hours by Dec. 12 combined with very warm temps in the passes where snowmelt caused flooding.

Local city and county public works crews and state department of transportation officials have been inundated by slides.

A mudslide near Skykomish in central Washington prompted the closure of US Highway 2 in early December, and transportation officials said mudslides forced the suspension of Amtrak service between Portland and Seattle until Dec. 13.

In southwest Washington, the Chehalis River near Grand Mound was expected to reach major flood levels by mid-December

Redesigned Kia Sorento CUV more car-like than ever

By Lary Coppola The Kia Sorento has been completely redesigned from the ground up for 2011, resulting in a much more car-like vehicle than before. That’s because the previous-generation Sorento was built on a rugged body-on-frame truck chassis, while the 2011 Sorento rests on a modern, lightweight, rattle-free unibody frame.

The Sorento is larger in every way than the prior version, offering 15-percent more cargo room than its predecessor, and is now available as a three-row crossover that seats seven.

While not intended to be a serious offroader, the four-wheel-drive version of the Sorento has 7.2-inch ground clearance, which will be beneficial in some less than extreme offroad situations, while its hill start-assist control and downhill brake control — standard across the Sorento line — will be welcomed by those living in hilly country — or in Cities like Seattle and San Francisco.

Model Lineup: The 2011 Kia Sorento comes in four models: Sorento, LX, and EX, which all come with a 2.4-liter four-cylinder engine, and EX V6. The base Sorento comes standard with a 6-speed manual transmission, while the LX and EX come with a 6-speed automatic. The EX V6 is powered by a 276horse, 3.5-liter V6 and 6-speed automatic.

The base Sorento comes standard with cloth upholstery, A/C, AM/FM/CD/MP3/Sirius

Satellite radio, auxiliary and USB audio input jacks, Bluetooth connectivity, tilt and telescope wheel, steering wheel-mounted audio controls, trip computer, and 17-inch alloy wheels.

The LX and LX 4WD add body-color heated outside mirrors with turn signal indicators, auto-up and down driver window, and illuminated vanity mirror. The Convenience Package includes roof rails, rear parking sensor, rearview mirror with backup display, heated front seats, and fog lamps.

The Sorento EX and EX 4WD upgrade to automatic dual-zone climate controls with ionized air purification, fabric/leatherette seats, eight-way power driver seat with lumbar controls, fog lights, automatic headlights, rear spoiler, leather-wrapped steering wheel, pushbutton start, and 18-inch alloy wheels.

The EX Premium Package adds roof rails, leather seats, heated front seats, and rear backup camera. The Limited Package for EX models includes navigation with real-time traffic, Infinity 10-speaker audio, 18-inch chrome wheels, interior mood illumination, and leather trim.

The Sorento EX V6 and EX V6 4WD also feature rear A/C. The Premium Package for both includes roof rails, leather seats, heated front seats, rear backup camera, panoramic sunroof. The DVD Entertainment System Package for the EX V6 eliminates the sunroof to make room for the overhead screen.

2011 KIA SORENTO 34 Kitsap Peninsula Business Journal•KPBJ.com January 2010

Every new KIA comes with a 10 Year/100,000 Mile Factory Limited Warranty

Walkaround: The stylishly contemporary new Sorento obviously means to offer some serious head-to-head competition for the premier crossovers in the midsize segment — Honda Pilot, Toyota Highlander, Chevrolet Equinox, and Ford Edge.

While stylizing the same basic body lines, the most noticeable change is Kia’s new signature grill, which it shares in different variations with all 2011 Kias.

Interior: The Sorento features a roomy, technology-rich cabin loaded with conveniences, attractive design, quality materials like available leather upholstery with handsome color schemes. It’s almost too nice to be a Kia. There is gray simulated-wood trim, and dash surfaces are an attractive textured black. All the controls feature high quality materials with good tactile feel. Instrumentation is well laid out, selfexplanatory, and illuminated in red.

There are separate front and rear air conditioning controls and an available rear DVD player with an overhead screen and headphones.

The second-row bench seat is comfortable, though even with the front seat well forward, second-row legroom isn’t anything to write home about. But then, this isn’t a large SUV either.

The third-Row Seating Package includes 50/50 split-folding third-row seats, and are about average for this segment. Tilt-folding the second-row seats forward to access the rear involves some calisthenics, as the seats are fairly heavy. Headroom is minimal, but should be adequate for most kids.

With all seats folded down, maximum cargo volume is 72.5 cubic feet, a significant improvement over the previous model.

Safety features include the mandated dual front airbags, side-curtain airbags for head protection, and front-seat side-impact airbags for torso protection. Active safety features include anti-lock brakes, electronic stability control, electronic brake-force distribution, hill start-assist control, downhill brake control.

Optional safety features include rearview camera, four-wheel drive.

Under The Hood: Our test vehicle was equipped with the same 175-horse, 2.4-liter four-

Serving Kitsap County for 30 years

cylinder engine that all models except the EX V6 come with, coupled to the 6-speed automatic. It puts out 169 ft. lbs. of torque, and delivers adequate performance and fuel economy (21/29 mpg City/Highway).

Behind The Wheel: During our test period, we found the all-new 2011 Sorento to be quiet and comfortable. Its rigid new unibody structure delivers an impressive feeling of sturdiness, with the new suspension nicely tuned to handle rough pavement, courtesy of MacPherson-strut front suspension and multi-link in the rear.

Driving aggressively on smooth curves, the Sorento has an agile feel that’s easy to control with a solid, no-nonsense steering feel.

Acceleration from the 4-banger was entirely adequate, though not exciting, and the fourwheel disc brakes bring the Sorento to a firm halt from highway speeds with good controllability.

Whines: The vanity mirrors in the sun visors were illuminated, but only after pushing a button to turn them on. Similar units in most other vehicles light automatically upon opening. Our test vehicle also had the deluxe navigation system with rear backup camera. However, it lacks some of the more sophisticated onscreen visual aids for backing while turning found on other premium crossovers. Once the second-row seats are down and locked, the latches are hard to release and fold forward from the rear row.

Bottom Line: Kia is focused on value — a winning theme in difficult economic times.

Overall, the 2011 Kia Sorento is a nice, fully equipped contemporary family vehicle, that’s more than just a new model for Kia. While still efficient and affordable, this attractive crossover offers surprising levels of luxury, versatility and sophistication, representing a strong move upscale. It offers serious competition for the best mid-size crossovers from both Japan and Detroit, and is kinder to your wallet in the process.

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Chrysler 300 SRT8: Big, bold, and fast… with attitude

when it was DiamlerChrysler — apparent in several places, and laid out to accommodate the serious driver.

The thick steering wheel features an arc of wood on top, while it, the shifter and door pulls are all covered with "technical" leather trim for positive “grip.”

The front power-adjustable sport seats are equipped with memory functions heating and cooling capabilities, and suede inserts emblazoned with the SRT8 logo.

When coupled with the adjustable pedal cluster, they hold the driver and passengers firmly in place while offering every driver a unique but comfortable position from which to enjoy the spirited driving this car was built for.

Instrumentation includes a 180-mph (300 kph) speedometer, tach, and temperature gauges, with a tire pressure monitoring display standard. Gauges are round, analog, white-faced, and illuminated in retro Chrysler green. A jeweled, analog electronic clock, ala Infiniti, graces the top center of the dash.

There is a gated shifter for the AutoStick, situated just forward of a fairly deep storage bin, and the center stack is elegantly functional — again, underlining the Mercedes influence.

Other amenities include a standard AM/FM stereo with six-disc CD changer with steering wheel-mounted controls.

However, our test vehicle boasted the optional 13-speaker Kicker surround sound system, with a 322-watt amplifier and 100watt subwoofer, as well as an iPod interface, available Sirius satellite radio with GPS and Sirius Traffic, which offers real-time traffic information. Besides a navigation system, it also included the optional Sirius Backseat TV service, which is a rear DVD system with a flip-down screen.

Also offered is a hands-free, Bluetooth™ communications system. The system recognizes up to seven different Bluetooth-equipped cell phones and responds to voice commands utilizing a microphone in the rearview mirror and the stereo system's speakers.

Climate control adjustments are made via an automatic, dual-zone temperature control system with infrared temperature sensing. Also standard is an electronic vehicle information center with 128

customer-programmable features.

The trunk offers 15.6 cubic feet, and opens forward to the fold-down rear seat.

Under The Hood: Chrysler’s 5.7-Liter Hemi was severely modified to corral every available horse and get it under the hood of the SRT8. Cylinders were bored out, increasing total displacement to 6.1-Liters, along with extensive head, valve and cam changes. The result puts 425 ponies to the pavement, with 420 lb.-ft. of torque that will snap your neck.

Exhaust is routed through a largediameter (2.75-inch vs. 2.5-inch) system

with 3.5-inch chrome tips.

All this power is married to a responsive, 5-speed automatic with the aforementioned AutoStick for manual shifting control.

Behind The Wheel: I’ve had several occasions to drive this car since it was first introduced, and I like it more every time.

The ride is very smooth and solid without any weaknesses — and I’ve always driven it hard — including two road trips to Portland and back as well as other places.

Inheriting significant engineering and mechanicals from the Mercedes E-Class, the SRT8 drives as good as it looks. The ride is smooth, and quiet and handling is tight. The constant-rate assist rack-andpinion power steering is just right — at least for my driving style. And it’s not speedsensitive, resulting in a responsive, confident feel.

A car that performs like this also needs to be able to stop just as well. The SRT8 features four-wheel disc, four-piston, Brembo brakes that do a 60-0 mph stop in approximately 110 feet, and a 0-100-0 mph time in the mid-16-second range.

Whines: Can’t think of any.

Bottom Line: At $48,520 as tested (pretty much fully loaded), the Chrysler SRT8 is price competitive, and as good as any competitor built in Europe or Japan.

This is totally awesome, high-performance Detroit Iron I personally wouldn’t mind owning.

2011 CHRYSLER 300 SRT8 YOU CAN GET THERE, OR YOU CAN ARRIVE.

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360-377-4418 www.westhillscjd.com

January 2010 Kitsap Peninsula Business Journal•KPBJ.com 35

By Lary Coppola I fell in love with the Chrysler 300 the very first time I laid eyes on it at the L.A. Auto Show some years back. Its combination of bold, stylish luxury combined with some serious bad-ass attitude, hit me right where I live. This is Detroit iron at its finest — the very last of the big, powerful, rear-wheel-drive, fourdoor sedans built for the long drive on America’s open road.

In fact, that attitude was part of the inspiration behind the current Nissan Maxima when it was redesigned for 2009.

At it’s press introduction, Nissan engineers told us their “unofficial” goal was to recreate that “sinister” look in a breakthrough vehicle with an attitude — akin to the Hemi-powered Chrysler 300M. The Chrysler 300C-SRT8 is a case of “Back to the Future” — how cars used to be built — big, bold-looking, 4-door sedans with a monster powerplants. In the case of the SRT8, it’s a 6.1-Liter, 425-horse, Hemi.

And in spite of all the advances in automotive technology over the past few years, one simple fact remains: Rear-wheel drive handles raw horsepower way better than front-wheel drive ever will.

The Chrysler 300, along with the Cadillac CTS, have redefined what Detroit iron can truly be.

The SRT8 is your basic 300C with loads of performance and tech tweaks. Those include 20-inch wheels, unique design features, and options like a 13-speaker Kicker audio system, UConnect Navigation and UConnect Phone systems. Included as standard equipment with the SRT8 is the SRT Track Experience, a oneday driving experience conducted at various racetracks with instruction from the Richard Petty Racing School Walkaround: “Back to the Future” doesn’t necessarily mean retro — except perhaps the giant grille, which is reminiscent of the 1958 300C. Styling is distinctive, bold, unapologetic, bluntly uncompromising, and quite frankly, very cool. The STR8 cuts a dramatic profile, with a long wheelbase, long hood, a low roofline bringing to mind images of 1930’s-era gangsters, a short deck lid and short overhangs.

In 2008, the decklid was redesigned to include an integrated spoiler that increases rear downforce by 39 percent, helping keep the rear tires firmly planted at high speed without increasing drag. The long hood glides forward and drops off a cliff whose face is the massive grille, framed by winglike double-beam headlights.

Other unique features include bodycolor mirrors and door handles, as well as front and rear bumper inserts that are more than aesthetic — they direct air flow through unique ducts to cool the brakes.

The very cool SRT wheels are big — forged aluminum 20 inchers, with large, rounded wheel well cutouts.

Interior: The SRT’s interior — which is unique from the rest of the 300C lineup — is roomy, stylish, efficient, and conspicuously silent, with a subtle Mercedes-Benz influence — a throwback to

Editor & Publisher Lary Coppola Advertising Sales Dee Coppola Creative Director Steve Horn Webmaster/IT Greg Piper Graphic Design Kris Lively Office Administration Jennifer Christine Web Host Piper Computer Services Contributing Writers Rodika Tollefson Adele Ferguson Don Brunell Kathleen Byrne-Barrantes Dan Weedin Ron Rada Julie Tappero Paula Bartlett Jason Parker Press Releases

36 Kitsap Peninsula Business Journal•KPBJ.com January 2010

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Reproduction or use of any editorial or graphic content contained herein in any manner whatsoever without the expressed written consent of the Publisher is strictly prohibited. The Kitsap Peninsula Business Journal is proudly composed using Apple Macintosh® computers and printed by The Kitsap Sun, Bremerton, WA. Views expressed herein are strictly the opinions of the authors and do not necessarily reflect those of the advertisers or ownership of The Kitsap Peninsula Business Journal.

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STATE WORKER PAY In the Kitsap Sun on 4 December 2010, the article by Brad Shannon, “State Weighing New Cuts to State Worker’s Pay” was very interesting. The article contained many very logical ideas that Gregoire can make happen very easily. Then I read on to the idea of Republican Representative Gary Alexander from Thurston County and his idea about health care premiums raising a question at that point.

Immediately Tim Welsh of the Washington Federation of State Employees (about 40,000 workers) came out with opposition to increasing health benefits. To be very specific here, we are not talking about more or better medical service. We are talking about the cost of those benefits, the cost of the premium. Also remember there are fifteen or more state unions involved in this issue over premium cost (about 100,000 workers) at a present cost of about $850 per worker for health care, dental, life, retirement, and disability premiums. Be that a monthly cost or a yearly cost it relates to a huge amount of money that a taxpayer is denied the use of due to funding these workers lavish benefits. Welch is saying the employees pay 12 percent of this cost now and the union won’t be open to paying 26 percent.

First, some union history in this area as a person that has been a union member, a shop steward for 20 years, a Chief Steward for 20 years, an obligated member of the AFL/CIO for 20 years, I see a real problem here. All of my working life I have never had any employer or agency pay 88 percent of the cost for any of my benefits. I support the unions 100 percent in the work they do to force safe work environments, fair wages and representation for illegal employer labor relations actions, etc. However, the reckless demands by these unions on the backs of taxpayers to pay 88 percent of their

benefits are inexcusable. Simply, it is the responsibility of these employees to fund their own benefits from the high salaries they receive.

That causes the question, “Why are the taxpayers being taxed to pay for all of these benefits for all state workers?”

Therefore, it is the responsibility of state lawmakers and Governor Christine Gregoire to end this huge taxpayer abuse by requiring all state employees, including education employees to pay 100 percent of all of their own benefits. For Gov. Gregoire and the lawmakers to ignore this serious financial problem the unions representing state employees will force this state into a unsustainable bankrupt state situation, like California is facing from the high financial demands of unions, that the taxpayers will be unable to support.

Larry L. Mann Port Orchard

GAMING THE SYSTEM There’s a cancer destroying our democracy. People and groups are “gaming the system” — perverting and distorting Democratic Processes for their own gain and advantage.

Prior to about ten years ago, the amount and seriousness of this disease was low level enough to allow major processes to still work. Today, the gaming practices are so wide-spread and so often used as a mechanism of total political war, that many processes have been severely constrained or do not work at all. Look at our broken Senate last year. The House of Representatives passed 400+ bills the Senate never touched because so many processes were completely broken.

The truth of the matter is that when everyone lies — there is no truth. When everyone breaks the law, there is no law.

When everyone games the system, there is no system.

This trend must be stopped.

No system devised by humans is perfect but Democracy is the best we've come up with to date. However, Democracy itself is plagued with inconsistencies and apparent contradictions.

In fact, as practiced in the United States, the three major branches of government The Executive, The Legislative and the Judicial branches, are set up to counter-balance one another. The legislature is divided into two “houses” — the House of Representatives — intended to reflect the population of each state, and the Senate with two Senators elected from each state, intended to be equal in the number of representatives.

As part of this discussion, let me call your attention to an old math example of fairness. When to negotiating parties perceive a split of the prize as 50/50 they go forward with the deal. As the deal worsens for one side or another the"losing side" grows more and more reluctant to negotiate. Somewhere near a 75/25 split the losing party breaks off and refuses the deal. This example has been repeated and confirmed hundreds of times over.

Isn't this type of advantage those gaming the system are pushing for? What happens if they succeed and when one side or another stops seeing Democracy as a common goal and seeks to unfairly unbalance the returns for their side?

And the Obama administration thinks — in a very self-centered way — that he did something to anger the electorate. It’s not the man alone, it’s the deterioration of the system.

To paraphrase Bill Clinton, it’s the system stupid.

Terry Wellman Mercer Island

It’s Time to Act

By Don C. Brunell, President Association of Washington Business Both Washingtons are in a financial bind. In our nation’s capital, President Obama and Congress are running trilliondollar budget deficits, and our national debt will soon exceed $14 trillion.

How much is that? To pay back $14 trillion, you’d have to spend $1 each second for the next 448,000 years.

Meanwhile our state’s budget deficit is expected to exceed $1 billion for the current two-year budget cycle. It is expected to grow to more than $6 billion by

the time Gov. Gregoire and the Legislature write the 2011-13 spending plan. Two years ago, our state used $3 billion in federal stimulus money to balance its 2009-11 budget, but that option is not available this time around.

Unlike the federal government, our state must balance its budget. It also has solid commitments to repay the money it borrows to construct state buildings and highways. So, the choice for the governor and Legislature is either to raise taxes or cut spending.

Voters last November told the president

600 electricians picket carpenters for raid Conflict between the two crafts intensifies

remove contracting out from the collective bargaining statute.

Third, reduce or eliminate existing programs and don’t add any new ones. Federal employment has expanded under President Obama, and in Gov. Gregoire’s first term, the state budget increased 31 percent with higher salaries, richer benefits, 6,100 new state workers, new programs and even a new state agency.

In today’s economy, taxpayers simply cannot afford it.

Fourth, change collective bargaining agreements with public employees.

Government workers must sacrifice to the same degree as private-sector employees.

So far, that hasn’t happened. Originally, the governor proposed increasing the health insurance copay for premiums from 12 percent to 26 but recently announced it would be 15 percent.

Fifth, shorten permitting time, eliminate duplicative regulations, combine similar agencies with the same mission into one, and reduce costs for the private sector.

Eliminating those unnecessary costs will free employers to create jobs, which will restore economic vitality and provide more state tax revenues.

None of this will be easy. It will be a bitter pill to swallow, but it is necessary if we are to get better.

January 2010 Kitsap Peninsula Business Journal•KPBJ.com 37

By Harry Kelber More than 600 union electricians in St. Louis formed a moving informational picket line around the headquarters of the Carpenters District Council, whose Local 57 had been created to perform electrical work at prices and wages about 20 percent lower than the scale set by the International Brotherhood of Electrical Workers (IBEW).

With IBEW’s Local 1 and Carpenters Local 57 both competing for electrical work in the St. Louis region, the fear is that the continuing dispute will cause non-union contractors to flood into the area, putting in jeopardy the jobs of 30,000 construction workers in the region.

Construction unemployment is over 30 percent in St. Louis.

The dispute has also spilled over into nearby southern Illinois, where IBEW members of Local 649 staged a protest in June at a Wal-Mart store being constructed by the carpenters and Local 57.

Mark Ayers, president of the AFL-CIO Building and Construction Trades Department, told a crowd of 3,000 construction workers at a rally that included the international presidents of eight crafts: ”We cannot and we will not tolerate efforts to steal work from other trades.”

Local 1 has launched an advertising blitz in the region, including billboards, radio ads and the web site (www.local57facts.com).

The ads publicize Local 1’s experience, safety record and five-year apprentice training program.

There is a strong possibility that what is happening in St. Louis may be repeated in several other cities across the country, and in other crafts as well.

Carpenters’ President Seeks to Change Industry The labor leader responsible for raiding the electricians is Douglas McCarron, who has been president of the United Brotherhood of Carpenters since 1995. He has been trying to restructure the construction industry on industrial, rather than craft, lines.

McCarron says that under his plan, labor costs would be much lower, and a unified work force, like in the auto industry, could be supplied to contractors in a more efficient manner. His union built a $100 million training complex in Las Vegas, Nevada, and also has numerous training centers throughout the U.S. McCarron left the AFL-CIO in 2003, calling its organizing record a failure. In 2005, he joined the seven-union coalition, Change to Win, but he was forced to leave in 2009 because of jurisdictional raiding. The Carpenters, with 550,000 members, operate as an independent union, tightly controlled by its ambitious president.

McCarron, 60, was the only major labor leader to support President George Bush in his election campaigns. He was also involved in the ULLICO insider stock-trading scandal and had to return the profits he made on that deal.

In retaliation, the AFL-CIO, at its 2009 convention, passed a resolution that establishes a ‘Carpenters’ Organizing Committee.” The resolution states: “Upon the recommendation of the Building and Construction Trades Department, the president of the AFL-CIO is authorized to issue a charter or certificate of affiliation to the Carpenters’ Organizing Committee.”

Since carpenters and electricians have to work together on construction sites, not only in St. Louis but elsewhere, the possibility of physical conflict between them is a source of concern.

Even worse, it could trigger a jurisdictional war within the construction industry, at a time when united action is an important key to labor’s future. There seems to be no respected mediator on the horizon who is willing and able to deal with the conflict.

Craft unionism has been an entrenched feature of the construction industry that has endured even with the advent of industrial unionism and the CIO. The crafts will fiercely resist changes in their traditional jurisdiction.

But has the time come for structural changes in the industry? We think it’s a worthy subject for debate.

and Congress to rein in spending. They said, “Enough is enough” when they learned that every man, woman and child in the United States owes $45,536 for their share of the federal debt. They are also concerned that we have borrowed more than $3 trillion from foreign governments — onethird of that from China.

In Washington, voters sent a similar message to state lawmakers when they rejected an income tax and reinstated the two-thirds requirement to raise taxes.

As a result, there are painful decisions ahead. Success will be measured by how we lessen the agony and climb out of this financial hole.

Here are five ways.

First, recognize that this is an opportunity to prioritize how our state and nation spends our tax dollars. Legislators should also resist raiding dedicated accounts set up by specific taxes to fund specific programs, such as hazardous waste cleanup. Robbing Peter to pay Paul by moving money around and deferring payments doesn’t solve our long-term problems. Voters want cuts and tax dollars directed for what they are intended.

Second, find innovative ways to provide public services. For example, contract out services to the private sector when it is more efficient and cost-effective to do so, ensuring proper oversight and quality controls. To make that happen, lawmakers will have to change state law to

What the U.S. census tells us, and more

38 Kitsap Peninsula Business Journal•KPBJ.com January 2010

The new census numbers not only tell us a lot about the direction of our country over the last decade, but say much more about America’s hopes and dreams over the long term. The thing that jumped out at me in analyzing the constitutionally mandated head count is that while it isn’t an election, the 2010 census shows Americans have no trouble voting with their feet.

For many, it reflects rising support of limited government, but more interestingly, determines what states gained and lost seats in Congress.

While our state gained a tenth congressional seat because of an increase in population between 10 and 15 percent, a group called Americans for Tax Reform found states gaining the most population — and seats in Congress — had several common threads, including significantly lower taxes, fewer government regulations, less government spending, and were more likely to be Right to Work states.

What that says is that for the past decade Americans have been fleeing the heavy hand of intrusive government in favor of places where the market encourages entrepreneurialism and has the ability to create jobs. And not coincidentally, all are states that tend to lean Republican.

States with more than 20 percent population growth include our immediate neighbor to the east, Idaho, which has been aggressively marketing itself to Washington State companies as an alternative to our high taxes, over-regulation, and out of control spending. A drive along I-90 between Spokane and Post Falls is a testament to their success. Many of the shuttered buildings in Spokane still have company names on them, but you’ll see many of those same names on new buildings just across the state line.

Other states in the 20 percent club

include Texas, which will gain four seats, as well as Arizona, Utah, and Nevada. In the 15 to 20 percent range are populous Florida, which will pick up two more seats, Georgia, Colorado, and South Carolina (can you say Boeing?). North Carolina, which also falls into that 15 to 20 percent range, fell just short of picking up another House seat by only 15,000 residents.

Meanwhile, traditional liberal strongholds like New York and Ohio will both lose two seats, while industrialized, and heavily unionized New Jersey, Michigan, Illinois, Pennsylvania, Iowa, and Massachusetts, will each lose one, as will Louisiana.

In my view, LARY COPPOLA Louisiana is an anomaly due to The Last Word the twin knock out punches of Hurricane Katrina, which forced thousands to flee the state who never returned — many, ironically to Texas — and the Gulf Coast oil spill which has all but shut down its bread and butter industries — oil and fishing.

However, what is most telling, is that our nation’s most populous state — California — in spite of massive immigration, will fail to gain any seats for the first time since statehood. That means even more people are fleeing the Golden State than immigrating there — legally or otherwise.

Joining Washington in the 10 to 15 percent bracket are Oregon, Alaska, Tennessee, New Mexico and Wyoming. The increases in our state, Oregon, and to some degree Alaska and Arizona, are a result of California’s outmigration. Tennessee, Wyoming and Arizona are all Right-To-Work states.

Another telling statistic is that state and local taxes, coupled with per capita

government spending, in states gaining enough population to pick up seats are nearly a third lower than in those states losing seats.

The bottom line is Republican-leaning states will increase their power as population shifts from the liberal Northeast Rust Belt to the conservative South and West — where the jobs are.

In spite of President Obama’s overwhelming victory a scant two years ago, this significant realignment is viewed by many as an undeniable indictment of liberalism. I don’t know that I’d agree completely with that, but there will be an unmistakable impact.

And along with the census comes redistricting. What I’d like to see is common sense political boundaries — such as county lines, as opposed to absurdly shaped, politicized districts, such as the 35th here in our state.

But don’t expect anything that sensible.

While this year’s elections have increased Republicans’ power in many states, look for the Democrats not to hesitate trotting out their disgusting class warfare strategy, coupled with the Obama Justice Department playing the race card against Republican state leaders as they reshuffle Democrats’ long-ago gerrymandered constituencies in a pathetic attempt to neutralize the bad news the census has delivered to them.

The 40-year-old conviction sullying the legacy of 60s-era singer Jim Morrison of rock group The Doors with what today would be considered sex-offender status, has been reversed. Florida’s Clemency Board — encouraged by departing Republican Gov. Charlie Crist — pardoned the long-dead singer of indecent exposure and profanity charges stemming from a wild rock concert at Miami’s Dinner Key Auditorium on March 1, 1969.

Some attendees insist even today that Morrison exposed himself, while others in the audience, and Morrison’s own bandmates, argue he was just teasing the crowd, only pretending to do so. Crist was alerted to the controversy by a Doors fan, and said there was enough doubt about what happened that night to justify a pardon.

I was at that show, but too far away from the stage to actually see for sure. From my vantage point, Morrison was about two inches tall and purple.

At the hearing, Crist called the convictions, “a blot on the record of an accomplished artist for something he may or may not have done,” noting Morrison died before being afforded the chance to present his appeal. What Crist neglected to mention, was that Morrison died in 1971 at age 27 of a drug overdose in a Paris bathtub.

After the pathetic season the Seattle Seahawks have had, I have to wonder just how good a judge of athletic talent Head Coach Pete Carroll is. He wouldn’t play Kansas City Chiefs QB Marc Cassel when he was at USC, and he cut Tampa Bay’s LeGarrette Blount from the Hawks roster after just 11 days. In case you missed it, both tore up the Hawks, as well as other teams.

And finally, in what must be a tribute to either healthy living, Viagra, or some possible combination of both, 84 year-old Playboy empire founder Hugh Hefner announced on Christmas Day — via Twitter — that he is engaged to his 24-year-old girlfriend, Playboy Playmate and Girls Next Door star, Crystal Harris. It’s the third marriage for Hefner, who wed for the first time before I was even born.

I know there’s a bevy of possible jokes here, but none fit for mixed company came immediately to mind — or my mind at least.

And back to Olympia they go...

So back to the marble halls they’ll come, the lawyers and the farmers, the teachers and the salesmen, transformed by marks on a ballot into citizen legislators.

They’re becoming a vanishing breed.

Because the legislature takes more ADELE FERGUSON and more time, the kind Politics of people who can or will give of themselves is changing.

Eventually it will boil down to a few categories. There will always be the special interest legislator, there to pursue benefits for his industry or profession or resist efforts to downgrade them.

There will be the retired and/or wealthy person who’s made it in life and can afford to indulge himself in the fascinating hobby of lawmaking.

And there will be the opportunist who looks upon legislating as a living, a stepping stone to something better in government.

A bright young man or woman in the business or professional world won’t be able to take the necessary time out to serve the people.

A lot of this is the legislature’s own fault.

It doesn’t have to take four months to pass a budget, which is the one main item of business the Constitution says has to be done. Legislators, like lawyers, are deliberate procrastinators. The lawyer drags out his client’s case because the longer the period of time between arrest and adjudication, the less severe the punishment turns out to be.

The legislator puts off making final decisions on important matters until he is forced to, because many of these matters are intertwined. Many bills are trading stock for votes. No matter what kind of time schedules they set for themselves, they can always get around them and usually wind up passing

most of the bills just before the deadline.

That includes the innocuous stuff that could have been disposed of the first week of session. That will never change, because that’s the way the game is played, whether it’s 30 days, 60 days or 105 days.

In just over a week, 148 men and women from every corner of the state will bring their hopes, ambitions, talents, prejudices and flu germs to Olympia for the 2011 legislative session. Transition from legislator at home to legislator in session can do strange things. At home, he is just another neighbor, who receives the gripes of his constituents when things go wrong. In Olympia, for 105 days, he is SOMEBODY. He is the one around whom revolves the efforts and thoughts of thousands of persons for that brief period.

He is wooed, pursued, wined and dined. He also may be threatened, slandered, blackmailed and vilified. He will receive torrents of mail one day and look in vain for

a clue to how his district feels the next.

He will spend countless hours in public hearings, listening to the same people drone on with the same arguments about the same subjects they’ve been talking about for years. He will be inundated in reports from state departments that will be almost incomprehensible and completely frustrated by his inability to get anyone in one of those departments to answer the simplest question for explanation for him.

He’ll have to get up early and stay up late to even attempt to keep up with a portion of what’s ahead for him. He’ll almost forget what his home looks like and before it’s all over, he’ll wonder why he ever ran for the office in the first place.

But that all lies ahead.

Now, it’s exciting and glamorous and it all begins Jan. 10.

(Adele Ferguson can be reached at P.O. Box 69, Hansville, Wa., 98340.)

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