February 2011 Vol. 24 No. 2
The Voice of Kitsap Business since 1988
Something To Smile About… Business partners build a successful dental practice balancing work and life. By Rodika Tollefson Port Orchard dentists Marta Costa and Miranda Dageenakis have been partners in their practice for nine years. Working together has allowed them to balance work and family: Both are parents and by working only three days a week, each is able to spend time with their children as well as their patients. Dageenakis contacted several dentists in the area when she found out her husband, Michael, was being transferred with the Navy to Puget Sound from Chicago. When Costa replied, the two women met for coffee — and became friends. “We hit it right off the bat,” Dageenakis said. They say a business partnership is just like a marriage — it comes with give and take. “It has to be 50-50,” Costa said. Costa had a practice in Seattle for nine years and started a second one in Port Orchard in 1997. Five years later, a new mom to an adopted daughter, she didn’t want to commute and focused her attention on Port Orchard. She knew she didn’t want L-R: Dr. Miranda Dageenakis and Dr. Marta Costa
Smile , page 4 $1.50 Display until March 1st
Inside Special Reports: Women In Business, pp 4-11 Area Nonprofits, pp 26-29
Financial, pp 12-13
Editorial, pp 36-38
Technology, pg 15 Human Resources, pg 16 Real Estate, pp 23-24 Environment, pg 33 Automotive, pp 34, 35
Port Orchard Chamber, pg 32 Home Builders Newsletter, pp 19-22
Art show at Viridian Gallery and Frame Shop The abstract landscapes of western Washington artist Arvid Anderson will be shown at Viridian Art & Frame, 1800 Mile Hill Drive in Port Orchard. The showing will run from Feb. 1 to April 30. Anderson primarily works in monotype with and emphasis on strong color and design. For more information, call 360-8717900 or visit www. viridiangallery.com. Anderson’s Web site can be found at www. arvidandersonstudios.com.
Anderson accepts Limited Partnership Poulsbo Edward Jones financial advisor Glenn Anderson has accepted an invitation to become a limited partner in The Jones Financial Cos., the holding company for the St. Louisbased financial services firm. Anderson joined Edward Jones in 1999 and has served investors in Poulsbo for the past 11 years. In addition, he is active in several local groups, including Poulsbo Chamber of Commerce and Lions Club. Edward Jones currently employs more than 40,000 associates in all 50 states and through its affiliate in Canada. Under the current partnership offering, 16,000 associates received initial limited partnership offerings or were invited to increase their existing ownership in the firm. James D. Weddle, the firm’s managing partner, said, “Edward Jones is employee-owned. We believe one of the best ways to reward outstanding associates is to offer them an opportunity to share in the ownership of the firm they help build. I’m pleased to say that this associate certainly deserves the limited partnership offering.”
Bank of America welcomes Gena Black Bank of America (BOA) recently welcomed Gena Black to its Home Loan Team. She brings over 20 years of local lending experience to BOA, and prides herself in her customer service skills and expanded knowledge of Conventional, FHA, VA and Jumbo loan programs. Black can be reached at (360) 337-4309 and will be working at the Silverdale Bank of America Home Loan Center located in Ross Plaza.
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.
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Warner joines Harborview Massage & Wellness Center In October 2010, Blake Warner graduated from the Northwest Academy of the Healing Arts in Tacoma and in January passed the Licensed Massage Practitioner exam. Warner’s company is Grounded Massage specializing in therapeutic massage with an emphasis in Swedish, deep tissue, and trigger point modalities. He works as an independent contractor at Harborview Massage & Wellness Center located at 450 Port Orchard Blvd, #300, across from Lighthouse Restaurant, in Port Orchard. Warner is accepting new clients and is available Tuesdays, Thursdays and Saturdays by appointment. Reach Warner at (360) 895-2224 or visit www.HarborviewWellness.com.
Correction In the last issue of the Business Journal, there was a story headlined, “Haughton starts Automotive Imagineering, LLC,” that stated Doug Haughton was the owner of Liberty Bay Auto Sales. That was incorrect. The company was originally started in 1989 by Sandy Church and his son, Dean. Haughton worked for them, and served as the general manager of the company for approximately 10 years, retiring over a year ago. He did have a 10 percent ownership interest in the business, but Dean Church purchased both Haughton and his father’s interest in the business a little over a year ago. The Business Journal regrets the error.
In search of big support for small businesses Microenterprise Community Forum explores microfinance for underserved in Pierce County Finding training, technical assistance and capital can be difficult for low income or disenfranchised people. Those wishing to start a “microenterprise” — a very small business, usually with fewer than 10 employees and little capital — often do not qualify for traditional bank loans and may not have access to resources that others enjoy. But support may be available in untraditional places. An upcoming event at UW Tacoma brings together people and organizations interested in supporting microenterprises in Pierce County. The Microenterprise Community Forum, held from 1 p.m. to 5 p.m., Feb. 11, at William Philip Hall on the UW Tacoma campus, features speakers Teresa Lemmons, executive director of the Washington State Microenterprise Association in Federal Way, and Sharon Barber, Director of Economic Development at the Metropolitan Development Council. The forum is sponsored by the Milgard School of Business and the Center for Leadership and Social Responsibility, with support from Catherine Place, and RESULTS. For more information and registration, visit Tacoma.uw.edu/clsr/microenterprise.
Go bowling on Feb. 12 and help feed the hungry in South Kitsap The South Kitsap Helpline is hosting its third annual “Strike Out Hunger” at the HiJoy Bowl in Port Orchard on Saturday, Feb. 12 from 12–2 p.m. to help benefit those in need. This is always a really fun time that is made possible in part by the generosity of Hi-Joy Bowl and the Port Orchard Rotary. Bowling is for children and adults of all ages and skill levels. The cost is $12 per person for as many games as you can bowl in 2 hours. Dress up in your wackiest bowling ensemble…there will be prizes for the best costume and for the highest individual score. Not a great bowler? No worries — there will be opportunities to make additional donations per pin to help increase your odds of winning the big prize! If you are 18 and under and would like to pick up a pledge form to solicit bowl-a-thon donations, your registration fee of $12 will be waived. There will be a special prize at the event for the child or teen that brings in the most pledges. For more information, call South Kitsap Helpline at (360) 876-4089 or register in advance with Hi-Joy Bowl by calling (360) 876-8111. Registration is also available the day of the event at Hi-Joy from 11:30 a.m. to noon. Non-perishable food donations for the food bank will be collected at the door.
Kitsap Bank adds depth, experience to Mortgage Division
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David Buchanan of Poulsbo has opened a new woodworking business specializing in custom woodworking and furniture repairs. Buchanan has over 35 years experience in custom woodworking, and has extensive experience identifying woods and matching damaged and broken wooden furniture and wood trims. He repairs broken furniture, cabinets, and likes to create special pieces, to fit into a particular space. Buchanan is another graduate of the Washington Community Alliance for Self-Help (CASH) business development training program in Kitsap County. To contact Buchanan or see examples of his work, visit www.davidwadewoodworking.com or call (360) 440-2398.
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Kitsap Bank continues to strengthen and add to its Mortgage Loan Division in response to a growing demand in the area for mortgage services. Following the addition of Matthew Kover, senior vice president/manager to the Mortgage Loan Division in July, two new employees, Shelli Cates and Geri Barkhoff, have also joined the Kitsap Bank team. Cates holds the position of residential mortgage loan officer. Dedicated to serving customers on the Olympic Peninsula, Cates is based out of Kitsap Bank’s Port Ludlow Branch. She has over 20 years of experience in the mortgage industry. Barkhoff joins Kitsap Bank’s Mortgage Loan Division as loan processor. She brings 13 years of experience to the position, and will be serving customers out of Kitsap Bank’s Point Fosdick Branch in Gig Harbor. “Our neighbors are recognizing that now is a great time to purchase, refinance or remodel a home,” notes Steve Politakis, Kitsap Bank executive vice president/ CCO, “We are committed to meeting the needs of our community, and that includes helping them take advantage of these historic times. Our highly experienced team of lending professionals is ready to assist.”
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SMILE from page 1 to be solo for long, and her partnership with Dageenakis combines a shared philosophy and passion for dentistry. Costa & Dageenakis is a general practice dentistry serving all ages. The two women welcome young children as well and are known have a special touch with the little ones. “They get very comfortable with us. We really enjoy kids,” Costa said. The business had seven employees and has since nearly doubled its staff. Michael Dageenakis started working at the practice after being discharged from the Navy three years ago, which has allowed the clinic to add extra hours and be open on Fridays. “We’ve grown tremendously in the past four years. Once you get out there in the community, you become part of it,” said
Miranda Dageenakis, adding that most new patients come through word of mouth. Costa started out in the profession as a dental assistant and said she soon wanted to do more. She said it’s especially satisfying to help people get over their fears and to build relationships with patients. “We try to go out of our way to work with our patients, especially those who are committed to our practice,” Dageenakis said. The two women said there was a learning curve on the business side, as with any new business, especially as the practice grew. They also realize there are growth opportunities, but for now they have found a comfortable pace. Both are involved with their children’s schools, and they also find ways to give back to the community by sponsoring sports teams and in other ways. “Having a partner has made it easy to balance work and life,” Dageenakis said.
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Women with caring hands By Rodika Tollefson Megan Nightingale, an audiologist who owns Peninsula Hearing in Poulsbo (www.peninsulahearing.com) and Port Townsend, has been in practice for more than 20 years. Starting out in a small, 500-squarefoot house, she has expanded her practice to seven staff including another part-time Megan Nightingale audiologist and a hearing instrument dispenser. Nightingale decided to become an audiologist while in high school after her father, who was elderly, had an experimental peacemaker installed. Because he had a hearing problem, he didn’t hear the cardiologist’s instructions regarding the warning signs of the device’s malfunction — and as a result, he later had congestive heart failure. “I thought, if I could prevent at least one person from this experience, I feel I would be making a contribution,” Nightingale says. She opened her own practice just two years after graduating with her doctor of audiology degree. It took five to 10 years
to develop the company and while the practice moved a few times, Nightingale resolved to keep the business open while going through personal challenges, including a divorce and her parents’ death. Her husband helps with the business, running the administrative side for the past two years. One of the best things about her job, she says, is seeing the look on her patients’ faces when they can hear their spouses or children again. “That’s really it, helping to remake a human connection,” she says. Nightingale sees her patients as being part of a family, especially since she makes long-term connections with them and helps them improve many areas of their lives.“It’s a very special relationship that occurs, and I think most audiologists will say that,” she says. “It’s more personal than primary care, with some exceptions, because we’re dealing with something on a deeply personal, psychological level that really creates a bond.” Lisa Bratcher, a Lisa Bratcher nuclear medicine
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technologist at Harrison Medical Center, says it’s very satisfying “knowing you make a difference in the patients’ lives.” At Harrison for 13 years, Bratcher is now the lead nuclear medicine technologist, which means she has to oversee the complex regulatory paperwork, review procedures and oversee department operations, in addition to working with patients. Nuclear medicine technologists are responsible for the entire process of nuclear diagnostic imaging, including interviewing patients and presenting the study data, with the exception of reading the exam. “If the study is not accurate, then the physician only has what we’ve processed. You have to really pay attention to detail and follow procedures and protocols to make sure you follow the standards and processes the same way for all patients,” she says. Bratcher served in the U.S. Navy for six years, with the Bremerton Naval Hospital as her last duty station. As part of her Navy corpman training, she spent four months of intensive classroom studies, eight to nine hours a day, followed by eight months of working eight to 10 hours in a clinic.
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After her military discharge, she took 11 years to be a stay-at-home mom, and when she returned to the field of nuclear medicine, everything had changed — the studies were done differently and computers have been added as a tool. A single parent, she offered to volunteer at Harrison Medical Center every weekday for about three months to relearn her profession. “That was a hard year but it paid off,” she says. Laurie Bitz, lead medical assistant and clinical research coordinator at Sound Health Care in Port Orchard (http://soundhcc.com), has been in the medical field for about two decades. After working for The Doctors Clinic since 1990, she helped open Sound Health Care three years ago. Her work includes hands-on patient care including drawing blood, as well as assisting the physicians. On the clinical research side, she’s responsible for coordinating patients who are part of the research studies. Currently, she has five trials in the works that study conditions ranging from pediatric migraine to Caring, page 5
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it’s a wonderful hospital,” she says. She selected her profession because she liked sciences while in high school but also wanted to work with people. As she explored her career choices, she learned about physical therapy and found it a great combination between her science foundation and her desire to connect with people. “When I looked at physical therapy schools and found out about occupational therapy, it appealed to me because it’s a broad field,” she says. “The best part is how rewarding the job is — every person is different, especially in the hospital where people have been sick or had a traumatic event. You start putting
the pieces together for them… and when you leave the room, they’re so grateful. You feel you’ve helped someone. It feeds you back as much as you Debra Jamerson give, and it’s a great feeling.” Debra Jamerson followed a dream when she opened her assisted-living longterm care facility, Haven in Allyn (www.haveninallyn.com), nearly four years ago with her husband, Ron. The Belfair couple moved to the area from Los Caring, page 6
February 2011 Kitsap Peninsula Business Journal•KPBJ.com 5
from page 4 congestive heart failure. “It’s a wide realm of indicators, and it changes all the time,” she says. That side of the work is much more structured due to the specific protocols required by pharmaceutical companies, and Bitz enjoys learning new things all the time. Bitz became interested in a medical career as a young mother to an ill infant. She wanted to understand the health care field better at the time. She says she likes the fast-paced environment that changes constantly. “It’s always evolving,” she says. “Getting to know the patients keeps the job interesting. (The practice) is part of my family. We’re very tight-knit.” Leslie Krueger, owner of Encore Communities with her husband, Rick, started on the career path of working with the elderly in 1987. Born and raised in Bremerton, she had worked as maternal child health nurse specialist at the local Leslie Krueger health district for 10 years. When she became the manager of the Claremont East Retirement Apartments, owned by her parents-in-law, she realized how much she enjoyed working with seniors. Just a few weeks on the job, she saw there was a missing link, assisted living, and the new aspect was soon incorporated into the facility, helping the business grow. Leslie and Rick Krueger started developing the Silverdale campus of Encore (which didn’t get the umbrella name until later), in 1990. The campus now includes Clearbrook Inn Assisted Living Apartments, Northwoods Lodge Healthcare and Rehabilitation Center and Country Meadows Cottages. Encore also includes Apline Way Retirement Apartments in Shelton, owned by Rick’s parents, Les and Betty. While busy with construction and growing their business, the couple were also raising two children and staying active in their school and sports activities, including coaching some teams. And after a short break following the completion of the Silverdale campus, they developed more projects — the Encore corporate office in Belfair and The Villas of Clifton Ridge in Belfair. Krueger continues to be very involved with the Silverdale facilities, overseeing upgrades and new programs. She is in charge of the marketing campaigns, the gift shop, and various other aspects. “I love people and the opportunity to make a difference in their lives,” Krueger says of her career. “I believe in very high-quality services and delivery of those services by a caring, competent team of individuals who take pride in what they do. Everyone deserves to be well provided for and to feel a real sense of compassion by those who are there for them.” Erin Sullivan, an occupational therapist at Harrison Medical Center,
works with acute hospital patients on self-care and other basic daily tasks. She also works with the families, conducts cognitive assessments, does discharge planning and caregiver training on safety and other aspects. Sullivan has been working at Harrison for about a year, following Erin Sullivan her graduation from University of Puget Sound with a Master of Science degree in Occupational Therapy. While in the graduate program, she did an internship at Harrison in the same department. “I loved it here. I think
Women who make kids their business By Rodika Tollefson For many local women, being good at their job requires one major thing: patience. These women have made kids their business, many still working with young children after their own kids have become adults. It’s not an easy job, but they say they wouldn’t change it for anything in the world. “I love being here — it’s the best job in the world,” says Jo Ann Maxwell, executive director at the Jim and Carolyn Milgard Family HOPE Center in Gig Jo Ann Maxwell Harbor, which includes the Chaney Family Branch of the South Puget Sound Boys and Girls Club and the Senior Club. A former special needs and physical education teacher for 17 years, Maxwell joined the nonprofit sector when she followed an opportunity to work with Special Olympics in Montana. Growing up with both parents as teachers, Maxwell was active in sports and when she had the chance to coach younger kids as a high school student, she loved it. “I like to see the growth of kids who may
be struggling with some aspect of life,” she says. As the executive director at the HOPE Center, Maxwell oversees the building operations and wears various hats that range from fundraising to outreach and implementing new activities. To continue the opportunity to work with children hands-on, she volunteers at the Boys & Girls Club as a homework tutor. She says there are many similarities between being a teacher and a leader of an organization: For one, she still gets to guide and mentor, not only the children but also the staff. “I love what I do. It’s Kerby Carr Criss not work,” she says. Kerby Carr Criss’ work may look like child’s play too, but it’s really a tough job. Carr works with hundreds of children — often times with a group of a hundred or more at a time. Criss founded Kitsap Children’s Musical Theater (www.kcmt.org) in Poulsbo with her husband in 2000. As the executive director, she volunteers her time to oversee
operations, plan three shows a year and direct some of the shows. Directing means working with about 40 department heads, from choreographers to security managers, and casting an average of 100 or more kids. The theater caters to youth ages 5-19, and Criss now directs the 12-19 age category, after recently getting another director on board to work with the younger kids. Every child who auditions is cast, and families pay a tuition to be part of the shows. Criss especially loves to see autistic children be part of the acting crew, giving them the opportunity to feel as important as everybody else. Criss grew up in children’s theater and believes, “every child should experience theater.” She directed her first play as a high school senior, deciding to produce a show because her school didn’t have a drama program. “There’s not much more exhilarating that I’ve seen than getting on stage and getting applause and a standing ovation,” she says. “It’s healthy for (the kids’) emotional well-being.” She started KCMT after moving to Washington State and her seventh child was born. She was homeschooling her children at the time, and still has three homeschoolers at home. “People do not Sandie Bollinger realize the potential for kids. You know they can do it and you expect that from them,” she says. “Kids are able to give so much more than people expect.” Setting high expectations for the children is something Sandie Bollinger also
believes in. As the owner of Sandieland Preschool and Day Care in Port Orchard, Bollinger has set up a structured environment where she expects the kids to be respectful and behave — and they don’t disappoint her. “Kids feel secure in that environment and do well,” she says. Bollinger has been working with children in Washington State for more than two decades, and prior to that for 10 years in Santa Barbara, Calif. Her husband, Ken Hizzell, has been helping for the past 20 years. Originally, she started out providing day care after her second child was born, and soon realized the kids were eager to learn new things so she started adding in academic aspects. “The children loved it. They were soaking it up,” she says. She has developed an academic program that helps most of the kids learn to read before they enter kindergarten. The toughest part of her job is losing the children when they grow up or move away. “They’re like my own children,” says Bollinger, who has potty-trained more than 300 kids in her career. “You get attached to them but you know they’ll eventually leave.” Several of her former students come back in the summer time to hang out with the youngsters and help out. She says an important part of her job is to provide the children an environment where they can thrive. “You have to stimulate them, you can’t just leave them there,” she says. “When you stimulate them, and you see them learn, it’s such a thrill.” Susan Sivitz understands the need to provide stimulation for children. She
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Kids, page 10
CARING from page 5 Angeles when Ron got transferred to the shipyard through his job — and his plan was to retire in a few years. Instead, the couple bought a vacant building that used to house a retirement facility, gave it a facelift, and opened doors to serving vulnerable adults, providing both long-term care and adult day care and respite. The business has expanded to offer care management, helping seniors navigate the health care system while staying in their homes. A separate division of the company also offers home care. The business employs about 20 people and Jamerson, a registered nurse who taught classes at Olympic College, wears just about all hats. “When you own a business, you get your hands dirty and do whatever it takes to make that business successful,” she says.
She says Haven in Allyn is a special place because the staff pamper the residents, providing a homey atmosphere with homemade meals ( Jamerson herself loves to cook), hosting frequent parties where family and community members are invited, and giving extra attention like styling the women’s hair and doing their makeup. As much as she loves taking care of the elderly, Jamerson loves growing her business. Plans are in the works to expand to more rooms as well as build another facility on the property. “Business is liberating because you get to use every gift and talent you have,” Jamerson says. “You get to really express who you are. You have to face every fear you have — you can’t hide like you can in a job, and you don’t ‘graduate’ until you face them. Then you develop this amazing person that’s like a master of life.”
Bella Bella Cupcakes makes the next leap: A new storefront By Rodika Tollefson Undoubtedly, it would take quite a few cupcake sales to make a successful enterprise, but Silverdale mompreneurs Donna Wharton and Aime Lacher have obviously found the winning recipe. The two women, owners of Bella Bella Cupcakes (www.bellabellacupcakes.com), took a major step in January to growing their business: They opened a new storefront off Silverdale Way. The move came after they’ve been in business for a little over a year and brings new opportunities, now that the pair can do the baking in their own space and on their own schedule. “This will regulate our schedule a bit. We were at the point to either go full-scale 24/7 or scale back because we were getting so busy,” Larcher says. The pair, who have nine children between the two of them, have been using the Evergreen Commercial Kitchen in Bremerton, which became a challenge during the busy farmers market season. And although having a low overhead was helpful as they started out and tested the market, their vision was to have their own location. The roomy Bella Bella storefront includes tables for customers to linger, and also sells espresso, Viking Feast Ice Cream and gift items. While the partners are not planning to hire help at first, Wharton’s mother, Lety McDaniels, has been visiting from California to help them get started. Other friends and family members help out, including the kids and Wharton’s husband. “Everybody pitches in, everybody sacrifices and works their tails off,” Wharton says. The two families live just minutes away from the new location, which will allow the two moms to continue juggling parenthood with business
responsibilities. Larcher and Wharton met more than 10 years ago while working at a Silverdale restaurant and became friends, following each other from one job to the next. The cupcake idea came about when one of them was laid off. “It was a huge risk,” Wharton says about their startup. Since officially launching in September 2009, they’ve gone from offering eight flavors to more than 40. The cupcakes are made from scratch without the use of commercial batter or artificial flavors. The business started paying for itself within the first year, and a friend offered to invest into the company so Bella Bella could have its own building. During the peak summer season this past year, they baked as many as 80 dozen cupcakes a week. They also supplied cupcakes to events ranging from weddings to fundraising galas and festivals, and delivered to customers all over West Sound. “Aimee has no rejection factor in business,” Wharton says. “…We’re not just about cupcakes. We’re about service.” The women are big supporters of local organizations, donating cupcakes to various
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events. Through that community involvement, they have not only made many new friends but also found business mentors. “We’ve met a lot of really amazing people,” Larcher says. One long-term goal is to expand into the wholesale market and the pair has other ideas up their sleeves, including finding
Women in business: Enjoying the creative side and the flexibility
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By Rodika Tollefson Garden designer and coach Sue Goetz has discovered something that many entrepreneurs do once they’re bit by the bug: After they get a taste for having their own business, it gets into their blood. Goetz, who is also a garden writer and consultant through Sue Goetz her Gig Harbor business, Creative Gardener (www.thecreativegardener.com), had owned a garden store in Idaho for five years and while working for other companies after her move to Washington, she missed the independence. “When you’re self-employed, there’s moments when you wish someone else paid the taxes and did payroll, but then you miss (having a business),” she says. Goetz coaches both beginning gardeners who need help getting started and experienced ones who are looking for new ideas for their spaces. “What I like the best is watching people get excited about their gardens. When I work with them, people get excited and they blossom in their gardens,” she says. She also designs gardens, offers lectures and writes gardening articles, which is another way of sharing her passion. She says being excited about the work is important for a business owner. “If you’re going to be self-employed, it’s valuable to choose a passion and figure out how that passion will make money,” she says. “If you can figure out how your passion turns around into a business, that’s when it clicks,” she says. For Silverdale artist Lisa Stirrett, things
clicked when she discovered a technique called gyotaku. A former annuities account manager, she decided to become a stay-athome mom after her first child was born, but she needed “something to do.” When she discovered gyotaku, an old Japanese art form used to record maritime species, she was on to something. “I thought, that’s it, that’s what I’m going to do,” she says. “…It was baby steps along the way. Everything just grew.” She still uses the gyotaku technique and has been commissioned by Costco to do the art for its salmon boxes, creating a new design every year. Since becoming a full-time artist more than two decades ago, Stirrett has created numerous commissioned and commercial pieces. One of her first publicly funded commissions was a steel and glass piece (installed at the Kitsap Transit ferry terminal transfer station) and under the tutelage of a glass artist and a caster, she learned how to work with those mediums. That opened the door for other work, and she has since been working in glass as well. Stirrett opened up her Silverdale studio to the public about two years ago. Visitors can come in and see a working studio with various projects in progress. Although her work has been primarily Lisa Stirrett commission-based, she is now also making smaller pieces and selling them at her Lisa Stirrett Glass Art Studio (www.lisastirrett.com). Having a business focused on art is challenging, Stirrett says, especially due to the economy, but she is learning new ways
of marketing the business and attracting retail customers to the gallery. “I love being able to have the freedom to create and see the joy of someone connecting with the art,” she says. Tami Selby also likes the creative freedom of her job. A nationally certified professional building designer, she uses her extensive background and creative thinking to turn her customers’ dreams into blueprints for their future homes. The owner of Selby Design LTD for more than two decades, Selby recently moved her Tami Selby office from Grapeview to downtown Belfair for more exposure (www.selbydesignltd.com) and has expanded her services during the economic downturn to offer consulting and help homeowners through the permitting phase. Selby was fascinated by architecture since she was a little girl and decided she would work in construction. She got her first job right after graduating from college. A few years later, as a newlywed, she found herself laid off when the building company where she worked closed doors. Selby saw that as an opportunity to venture out on her own, entering a field where women were not common. She says having her own business has provided her flexibility when she became a mother but also has given her many opportunities. “I love it on so many levels. You can set your own schedule, and you can work really hard and be a go-getter,” she says. “It gives me pride too because it’s something I started on my own and made successful.” The key to making it through the
downturn has been in diversifying her business as well as the reputation she had built. “I can’t imagine not designing things,” she says. “I get to help people with their dreams, and it makes my day.” For Cia Mooney, it was the fusion of art with formal construction concepts that has created a winning combination for self-expression. Mooney is the vice president of product development at Watson Furniture Group in Poulsbo (www.watsonfurniture.com), overseeing a team that creates new products, and is also in charge of marketing. The product development team works on several new products at a time, from doing market research and engaging with customers to developing prototypes and launching new lines. Mooney’s background includes industrial design. A 30-year industry veteran, she has worked on projects ranging from Corning dishware, Boeing and Fiat interior concepts and museum exhibition designs, to Black & Decker drills and Motorola wireless technology installations. She says the profession of industrial design is broad-reaching and gives a person a taste of many things. “They all involve a level of conveying an idea… It’s the intellectual side of design,” she says. Mooney has been focusing on product development for the past 10 years and says the two jobs are similar but industrial design is less hands-on, more conceptual and usually not integrated into the manufacturing flow. “The nature of invention in general, I find appealing,” she says. “It’s the man-made object environment that I think is very interesting.” Creative, page 11
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Photographer Winifred Whitfield: Successful fusion of art and business Standard & Poor’s. But one day she decided she was done with Wall Street and with life in the big city, so she set off for the Pacific Northwest to start a new life. She had been to Bremerton before and liked it, so the Kitsap Peninsula became her destination. As she continued in the financial sector for a while, assisting colleges and other entities to structure their financing, she had acquired lamas and turned her focus to breeding. After she landscaped her six-acre farm and designed beautiful gardens, she found her property in demand for weddings, which, in turn, brought her into photography. (She has since put the
farm on the market and moved to a much smaller home in Port Ludlow.) “It’s not tough to reinvent myself. I’ve been told I have the gift of fearlessness. I know I will land on my feet and do well,” she says. “It’s because of the mastery. It’s an inner thing — not having
to overcome fear and the drive to learn new things, be creative and do well.” She says if she had to change careers again, she could easily do it, but she’s content with the niche she has found, especially in an industry that continues to grow. “The best part is the satisfaction, the tears that come when I deliver the final product. Women like to see themselves expressed beautifully.” Working for herself has worked out well for Whitfield, who likes to do things her way, and she doesn’t see going back. “I’m very happy on my own,” she says,” as complex as it gets sometime.”
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By Rodika Tollefson Winifred Whitfield has no trouble reinventing herself. The Poulsbo-based photo artist has followed several paths before finding her current niche — creating fine art photo portraits of women — but they all have one thing in common: complete dedication. “I want mastery. I want to do it really well. I’m not a dabbler, that’s for sure,” she says. Whitfield launched her boutique studio gallery, Intimate Portraits for Women (http://bigvalleyphotoart.com), when she discovered she enjoyed creating soulful, sensual portraits of women using the disappearing art of classic portraiture. She was doing wedding photography and when she found the possibilities of digital photography, she saw it as a way of returning to a childhood passion: painting. “People want to do work fast, put a tag on it and get it out the door. My niche requires time intensity to develop these products,” she says. “It’s not fast at all.” The product starts with a photo session where Whitfield uses techniques such as lighting and the subject’s own feelings. She says a good photograph needs a context, a person’s emotions, whether that’s sadness or joy. “I tell women to concentrate on their thoughts and what they project. I need content because it will come through the camera,” she says. “There’s a feeling to the images, a calmness, and that’s the difference. When people are ‘not there,’ there’s no feeling.” With the photos complete, Whitfield’s work is only beginning. She will take the raw image and digitally turn it into fine art, brushstroke by brushstroke, using two different software programs. “It’s very engaging and it’s a lot of work but it’s not boring or tedious,” she says. To achieve her level of mastery, Whitfield studies constantly — everything from composition to lighting in other artists’ good work — as well as dissecting her own work to see how she can improve it. She also focuses efforts on the technical aspects, such as experimenting with her digital brush strokes in order to build up her toolkit. “You have to work at it, it’s not intuitive at all,” she says. Her work has become renowned around the country and abroad. Whitfield, who also does photography in New York on location, has won various awards for her work and has been in demand for classes — as recently as January she went to London for a week to teach workshops. She also was recently invited to do beta product testing and be a spokesperson for X-Rite, a global leader in color science and technology. Whitfield enjoys sharing her knowledge with other photographers, and she’s even conducted a tutoring session for a renowned photographer friend via Skype: As he worked on a photoshoot in Australia, she guided him in using her techniques. The business aspects are generally challenging for the artsy types, but Whitfield says she has disciplined herself to do the work that comes with being self-employed. “If you don’t do it, you perish,” she says. Using that side of the brain, of course, is not new to her. In her former career in New York City, she was in charge of bond ratings at
AWOB to hold educational event on Feb. 9 The Alliance of Women Owned Businesses (AWOB) will hold an educational event at Best Western Wesley Inn on Feb. 9, at 4 p.m. featuring Attorney Ralph Flick. He will be speaking about the “10 Legal Myths Relating to Small Business Owners.” This topic is essential to anyone in business for themselves. Become empowered with vital information that will help protect your business and personal assets. Flick is originally from Southern California where he earned his
undergraduate degree in Economics from the California State University at Long Beach in 1991 and his Juris Doctor from Loyola Law School, Los Angeles in 1994. He spent most of his legal career as an inhouse corporate attorney for several public companies locat ed in the Los Angeles area in the mortgage and fashion industries and specialized in corporate securities and finance. He is a member of the Washington State Bar and the California State Bar. In 2004, he earned a Masters of Business Administration from
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10 Kitsap Peninsula Business Journal•KPBJ.com February 2011
Celebrating 16 years in business
AnnaLee Todd & EHT Enterprises, Inc. It was 1997 when AnnaLee Todd began the construction company now known as EHT Enterprises, Incorporated. She started out doing work for the Navy on their small works program and has grown to serve the United States Postal Service, GSA, Army, Army/Air Reserves, Air Force, Army Corps of Engineers and still, the Navy. She is supported by a fantastic, talented team of people who have contributed to the success of her company. AnnaLee is the immediate past president of Puget Sound Naval Bases Association, past president of Bremerton Area Chamber of Commerce and still volunteers for Kitsap Homebuilders Association, Navy League and Society of American Military Engineers. Networking through her customers and community is her passion. “Designing remodels, demolishing existing or antiquated structures and putting them back together to exceed the customer’s satisfaction is tremendously rewarding,” says AnnaLee.
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the University of Southern California. He advises clients both as an attorney in private practice as well as a business consultant. He serves on several corp orate and non-profit boards and resides in Gig Harbor. Flick provides an engaging, interactive session and will discuss legal issues that can affect business. Are personal assets safe if you are incorporated? Do you have the right business licensing? What if
something happens to you? – Is your family protected from business creditors? AWOB is a group that empowers women entrepreneurs to achieve higher levels of business success. Meetings are on the second Wednesday of the month at 4 p.m. at the Best Western Wesley Inn, Gig harbor. For more information visit AWOB on its Facebook page at www.facebook.com/Alliance-of-WomenOwned-Businesses.
KIDS
For Niran Al-Agba, her job is like having “the best of both worlds.” Not only does she work with children, she also brings her young kids to work frequently, and she is part of a family business. AlAgba is a pediatrician at Silverdale Pediatrics, where she works with her father, Saad, who has been in practice in Kitsap area for 40 years. Dr. Niran Al-Agba didn’t necessarily set out to be a pediatrician, though she knew she wanted to be in the medical field. But after doing an internship at her father’s practice as part of a medical school requirement, she fell in love with the idea. “I’ve always loved children, loved taking care of children and watching them grow up,” she says. She joined the practice officially in July 2002, and the business has been growing. More than a year ago, Silverdale Pediatrics moved into its own facility. The family built a campus that has two buildings, two stories each, leasing the additional space. At the new clinic, Dr. AlAgba has a nursery where her two children, an infant and a toddler, spend the afternoons while she catches up on administrative work. Born and raised in Bremerton, AlAgba decided on her career after taking a tour in grade school of Harrison Medical Center (where she was also born). “I absolutely loved it and from that day on, I wanted to be a doctor,” she says. She is a third-generation physician: Her grandfather on the maternal side was a doctor as well and she recalls listening to him talk frequently about how much he loved his job. Silverdale Pediatrics is a true family business: Al-Agba’s mother is the clinic’s office manager and is involved with the leasing aspect, and her brother helps out as well. “We take a real divide and conquer sort of approach,” she says of the family’s division of duties. Working with children and with her family, she says, has been a great combination. “It has been such a gift and a privilege watching the children grow,” she says. “Combining that with being with my family is a wonderful experience.”
from page 6 watches kids discover new things every day as the executive director of KiDiMu, Kids Discovery Museum, on Bainbridge Island (www.kidimu.org). “At any given moment, I can walk out of my office and see a child learning and enjoying it — that’s what feeds me,” she says. “It gives me a lot of energy.” Sivitz was a stay-at-home mom several years ago when she developed an appreciation for the island’s youth and cultural organizations. When her daughter took a drama class at Bainbridge Performing Arts, Sivitz started volunteering there. The more she learned about the organization, the more she wanted to support it. Several years later, Sivitz expanded her role even more, working for three years as the BPA’s managing director. At KiDiMu since June 2009, Sivitz Niran Al-Agba supervises all operations. Her first year on the job was focused on the new building project — the museum moved into a new, green facility last year. A big part of her job is to do fundraising, which helps the museum provide several free programs such as a free admission day, free admission to Head Start students and free memberships to foster families. “That’s a critical part of our mission, to provide access to our programs,” she says. Both of her parents were school teachers, and Sivitz has focused her community service on education as well, including serving two terms on the local school board. She feels children’s museums are very important, especially with continuous funding cuts to public education, because they provide a place for children to learn outside of the classroom as well as experience arts and culture. “My work has to have meaning for me,” Sivitz says of her job. “It has to do something to enhance the greater good for the rest of us.”
CREATIVE from page 8
company since the 1990s, she made the children a priority when they were younger. Bacon owns Zoyo Branding on Bainbridge Island (www.zoyobranding.com). “What I love about it is never being bored because there’s always change,” she says. “New and interesting stuff keeps the energy going.” She is currently working as a consultant for the island-based Beth Bacon Emerald BioStructures, a biotech focused on protein structures that does work for pharmaceutical companies and other clients. She was brought on board
last spring to help develop a branding and marketing strategy for Emerald, which also has a sister company that develops and sells new technology for the industry. Bacon worked for an advertising agency in New York and later did consulting for companies like Apple and Microsoft. Having worked with both small and large companies, she believes every business needs to create a brand, a nutshell idea of what the company is about. “It takes a lot of work to figure out that essence but it’s important before doing any messaging,” she says. “They have to figure out they’re the best ones who do ‘X’ and it’s important to know what that essence is, no matter how small.”
February 2011 Kitsap Peninsula Business Journal•KPBJ.com 11
At Watson, she says there’s an added dimension to her work because of the company’s emphasis on sustainable, environmentally friendly practices. “We’re pretty careful to put out Cia Mooney product that’s environmentally responsible,” she says. Cynthia Jeffries-Cyr’s interest in sustainability takes a different route. The owner, with her husband, of CJ’s Evergreen General Store and Catering in Bremerton (http://cjgeneralstore.weebly.com), she strongly believes in supporting local farmers. Not only does she buy as much locally produced food as possible for her store and her catering business, she also supports the efforts to create a cooperative store in Kitsap. The couple took a leap nearly four years ago when they decided to open CJ’s. The business began as a general store and after two years expanded to include catering. Jeffries-Cyr has eight employees and does a little bit of everything including bookkeeping (which she found the most challenging aspect of running a business). She likes the flexibility the business gives her with the schedule, but also knows the tradeoff means working late and long hours. The couple have two children, ages 12 and 14, who help out in the store as needed. A big part of the business has been supporting community organizations, including those focused on youth, from the Girl Scouts to Peninsula Services. “There’s a lot of kids out there who don’t have food and are hungry,” she says. “We try to do as much outreach as we can.” CJ’s participates in various events including concerts, farmers markets and fundraisers, which helps bring in new customers to the store. “Every event we go to, people learn we’re here and are really excited to know the quality of our food,” she says. “We get a lot of repeat business.” Repeat business, for Jody Buckley Jody Buckley, means continuously finding ways to bring current customers back while also attracting new people. Buckley is the manager of Springhouse Dolls & Gifts and the Victorian Tea Room in Port Orchard (www.springhousegifts.com) that is owned by her mother, bestselling author Debbie Macomber. Buckley says trying to anticipate what customers will want to buy is always a challenge — especially since product is ordered months in advance for the next season. But she loves the customer service side of the job the most. “I enjoy coming to work and talking to people. I’ve met some fantastic people,” she says. Buckley went out on a limb seven years ago when her mother asked her to manage the business that Macomber purchased from a previous owner. “She had to talk me into it. As the idea grew, I was getting more excited,” she says.
With no sales background and a shy personality, Buckley had a huge learning curve. Fortunately for her, the previous owner stayed on for a month to train her, and most of the employees remained with the business. “The staff have taught me a lot. I’ve been blessed with great staff,” she says. Working in the family business has given her the ability to balance the responsibilities of being a single mother while also having her own mother as a mentor. “Being a family business is the best thing about it,” she says. “It’s more personal.” Beth Bacon also found the flexibility to be a mom and a professional by operating her own agency. The owner of a marketing
Brush up on your Estate Plan basics By Todd Tidball During your lifetime, you make a lot of moves to provide financial security to your loved ones. You put away money for college for your young children. You save and invest for your own retirement so that you won’t ever burden your grown children with significant expenses. And you purchase adequate life insurance to enable your family to maintain its lifestyle should anything happen to you. Yet, if you’re going to help preserve your family’s financial wellbeing after you’re gone, you also need to take one additional step: Create an estate plan. Toward that end, you’ll want to start by learning a few of the estate plan basics, such as these commonly used tools: Will — For most people, a will is probably the most essential estate-planning document. Regardless of the size of your estate, you need a will to ensure that your assets and personal belongings will be distributed according to your wishes. If you die intestate (without a will), your belongings will be distributed to your
“heirs” as defined by state laws – and these distributions may not be at all what you had in mind. Living trust — A simple will may not be sufficient for your needs. Consequently, you may want to design a living trust, which provides you with more flexibility in distributing assets. For example, you could direct your living trust to disperse assets to your children or grandchildren at specific ages. Also, a living trust makes it possible for your assets to be distributed without going through the often time-consuming, and public, probate process. Beneficiary designations — Over time, your life may change in many ways, through marriage, remarriage, children, stepchildren and so on. That’s why it’s important to periodically update your beneficiary designations on your insurance policies and retirement accounts, such as your IRA and 401(k). These designations are powerful and can even supersede the instructions left in your will or living trust, so it’s essential that you’ve got the right people listed as your beneficiaries. Irrevocable life insurance trust — Depending on the size of your estate, your heirs may ultimately have to pay estate
taxes, though the estate tax laws have been in flux in recent years, and may continue to evolve. If estate taxes are a concern, you may want to take steps to alleviate them, such as establishing an irrevocable life insurance trust, under which you’d transfer a life insurance policy out of your estate and have the trust distribute the proceeds to the beneficiaries you’ve chosen. Power of attorney — A power of attorney allows you to appoint a person (an “Attorney-in-Fact” or “Agent”) to handle
your affairs if you can’t do so yourself. Health care directive — A health care directive allows you to name someone to make health care decisions on your behalf, should you become physically or mentally incapacitated. Estate planning can be complex, so you’ll need to work with your tax, legal and financial advisors to make the arrangements that are appropriate for your needs. It may take some time to develop your estate plans, but it’s well worth the effort.
Business owners need their own “Quarterback” By Chris Fassett Unless you’ve been cut off from every source of media, not to mention all human contact, you’re aware that the Super Bowl is fast approaching. If you’re a football fan, you’re probably eager to watch the game featuring this year’s best teams. And if you’re a business owner, you can learn a lot from how Super Bowl teams are put together. One thing that virtually all Super Bowl teams share is a stellar quarterback —
someone who drives his team with skill, agility and vision. These same qualities can be found in a qualified, experienced financial professional — someone who can act as your “quarterback” and help you reach your goals. What sorts of guidance might you get from your “quarterback”? Here are some possibilities: Coordinating your “team” — A Super Bowl-caliber quarterback obviously is adept at getting everyone on the offense to play Quarterback, page 13
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BUT YOU CAN CONTROL YOUR DECISIONS Call your local financial advisor today.
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THE BUSH-ERA TAX CUTS LIVE ON
With the President’s signature, most of them will remain in place through 2012 By Jason R. Parker A holiday gift for taxpayers? After a 277148 passage in the House and an 81-19 approval in the Senate, President Obama signed the 2010 Tax Relief Act into law on Dec. 17, extending the Bush-era tax cuts. Here is the impact of the new legislation: Current federal income tax rates are preserved for everyone. The federal income tax brackets will remain at 10 percent, 15 percent, 25 percent, 28 percent, 33 percent and 35 percent for 2011 and 2012.
Unemployment insurance extends for 13 more months. This is retroactive, so the federal extension of long-term jobless benefits applies from December 2010 through December 2011. A payroll tax holiday occurs in 2011. The payroll taxes that employees pay will drop from 6.2 percent to 4.2 percent next year. (There will be no payroll tax cut for employers in 2011, only employees.) As envisioned, this will result in a savings of about $1,000 next year for a wage earner bringing home $50,000. This replaces the Making Work Pay credit. Estate taxes will be milder than at any time in the past 80 years. For 2011, the federal estate tax drops to 35 percent. The
QUARTERBACK
financial advisor knows the answer to these questions, he or she can then help you implement your overall strategy through the use of suitable products and services. Adjusting your “plays” — When a quarterback sees something he doesn’t like, such as a last-minute change in the opposing team’s defense, he may call an “audible” to adjust his team’s designed play. Similarly, your financial advisor, upon identifying obstacles to your success, may recommend changes to your “plays” — the individual actions that make up your overall financial strategy. To illustrate: After reviewing the progress you’re making toward the retirement lifestyle you seek , your financial advisor determines that your retirement plan — e.g., your owner-only 401(k), SEPIRA, SIMPLE IRA or whatever plan you’ve chosen — is underfunded, contains a high percentage of conservative investments, and may need potential growth opportunities. Consequently, your financial advisor may help you decide it's time for an "audible" — in other words, it's time to re-evaluate so you may consider adjusting your contribution level and investment mix. A Super Bowl team needs a good quarterback — and so does your business.
from page 12 well together. And as a business owner, you, too, may need to get your own “team” up and running. Specifically, you may well need to use both an attorney and a tax professional to help you take care of various aspects of your business. Your financial advisor can help coordinate their services. For example, if your business is involved with your estate plans, you will have legal, tax and investment considerations to deal with — so you’ll want all your legal, tax and financial advisors working together toward your ultimate objectives. Executing your strategy — Whether a quarterback hands off the football or throws a pass, he is attempting to follow his team’s game plan, or strategy. And your financial advisor, as your quarterback, will help you execute the right game strategy to attain your own objectives. For starters, your financial advisor will ask questions such as these: “Do you have a retirement plan in place? If so, is it appropriate for your needs? Do you have the right types and amounts of business insurance? Have you considered business succession strategies?” Once your
Jim Thatcher, an Edward Jones financial advisor in Bremerton has accepted an invitation to become a limited partner in The Jones Financial Cos., the holding company for the St. Louis-based financial services firm. Edward Jones currently employs more than 40,000 associates in all 50 states and through its affiliate in Canada. Under the current partnership offering, 16,000 associates received initial limited partnership offerings or were invited to increase their existing ownership in the firm. James D. Weddle, the firm's managing partner, said, "Edward Jones is employee-owned. We believe one of the best ways to reward outstanding associates is to offer them an opportunity to share in the ownership of the firm they help build. I'm pleased to say that this associate certainly deserves the limited partnership offering."
Edward Jones financial advisor wins award for outstanding performance Jason Skifstadof, financial advisor with Edward Jones, recently won the firm's coveted Pioneer Award, which recognizes new financial advisors who achieve high levels of success early in their careers with the financial services firm. Skifstad was one of only 442 of the firm's more than 12,000 financial advisors to receive the award. James D. Weddle, the firm's managing partner, said “the award is a strong indicator of a financial advisor's future success.” "We recruit and hire our financial advisors from among the best, so we expect them to do well," Weddle said. "But to achieve such success early in his career with Edward Jones is outstanding, and I commend Jason for his performance and dedication."
2010. In basic terms, it allowed someone 70½ or older to donate up to $100,000 in IRA assets annually to one or more qualified charities. This opportunity is back for 2011 — and the especially good news is that Congress included a special rule in the new tax bill allowing IRA gifts made in January 2011 to count for 2010. An AMT patch, of course. Congress decided it might as well take care of that. It passed an AMT (Alternative Minimum Tax) fix as part of the 2010 Tax Relief Act, thereby exempting about 20 million middle-income households from a potential $3,900 average leap in federal income taxes. What’s the price tag of all this short-term tax relief? It is sizable. The federal deficit is projected to increase by about $858 billion over the next two years as a consequence. (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, WA. 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. Jason Parker is insurance licensed and offers annuities, life & long term care insurances as well as investment services.)
February 2011 Kitsap Peninsula Business Journal•KPBJ.com 13
Thatcher accepts Limited Partnership
estate tax exemption rises all the way to $5 million. President Obama had earlier characterized these parameters as too generous, but he and Congressional Democrats ultimately accepted them. Tax breaks for middle-class and workingclass families won’t sunset. As a result of the new law, the child credit, the child and dependent-care credit, the EITC, and a $2,500 tax credit for higher education expenses will all be around in 2011. No marriage penalty. The new law wards off the comeback of the marriage penalty so that married couples may take a more generous standard deduction. Taxes on capital gains and dividends top out at 15 percent. Passage of the 2010 Tax Relief Act means rates will top out at 15 percent through 2012. Businesses may expense 100 percent of their investments in 2011. In fact, qualified investments made after Sept. 8, 2010 and before Jan. 1, 2012 are eligible for this bonus depreciation. In addition, 50 percent expensing will be available for qualified property placed in service during 2012, and so-called “long-lived” property and transportation property may be eligible for 100 percent expensing if it goes into service prior to 2013. The tax break for IRA gifts to charity returns. The IRA charitable rollover, as it was informally called, was much beloved by nonprofits and IRA owners, but it went away in
CREATIVE CRISIS SOLUTIONS:
Enhancing your reputation is Job One “One can survive everything nowadays, except death, and live down anything, except a good reputation.”- Oscar Wilde
14 Kitsap Peninsula Business Journal•KPBJ.com February 2011
By Dan Weedin When I first started coaching basketball at North Kitsap High School 11 years ago, a sagacious veteran coach in the building gave me some sage advice. He said, “Dan, you can expect a minimum of three crises to occur every season. How you respond will determine how successful you are as a coach and a leader.” This advice was not only highly accurate, but also completely relevant to business and life. At the writing of this column, the past month has given us notable national crises such as the collapse of the Metrodome prior to an NFL game and the shooting of a federal judge and congresswoman outside a Safeway in Tucson. For the small business owner, you may experience a range of crises daily that you or your employees must deal with. As my fellow coach warned me, how you respond will either diminish or enhance your reputation. How you prepare for it will ultimately determine which way the pendulum swings. Crisis can range from a natural disaster (e.g. earthquake) to flooding in your server room to your top sales person leaving to join a competitor. The best way to
determine what exposures your business has is to perform a vulnerability analysis. This entails bringing your team together to brainstorm the areas where your organization can be hurt. There are five key areas to focus on — Property, Liability, Income, Human Resources, and Reputation. The last two are often overlooked because they aren’t normally covered by insurance. They may be the most important. In November of 2009, Tiger Woods made international headlines for his domestic distress. Many of his sponsors made a quick decision to drop him immediately, while others didn’t. One in particular was very vulnerable — the management consultant, Accenture. Accenture had built their entire branding on Woods. His indiscretions risked the organization’s international reputation. Without hesitation, Accenture dropped Woods like a 2-foot birdie putt within days. Nike on the other hand, stood pat. Why? Because their line of services and market matched what Woods brought to the table and would ultimately be more forgiving. Both organizations ended up making the right decision on a similar exposure. What does this have to do with you? You face many risks to your business, however
your response may differ from someone else’s based on your market, audience, product, or service. Managing crisis isn’t simply following a template you find on the Internet. It takes planning, preparation, engagement, and implementation from every corner of your organization. It must be communicated clearly from the CEO to the mailroom. Here are three things you can immediately do without cost to improve your crisis management strategy: • Form a committee of your top management, staff, and employees. Spend three hours mapping your biggest exposures. • Determine a response for each. Commit to that response and communicate it. • Practice. Why do you think we did fire drills in grade school? This is an extremely simplified version of what you should be doing, however I find that most businesses don’t do anything so it’s at least a start. Final thought. Crisis isn’t necessarily bad. It allows you the opportunity to lead and may actually enhance your reputation based on how you respond. Case in point is an insurance agency in New Orleans I know that was able to keep their doors open during the flood and serve clients and non-clients alike. In the past five years, they’ve grown exponentially due to their crisis response. Wha t about you? In the face of adversity, is your business positioned to be a leader or a loser? The answer is in your hands! (Editors note: Dan Weedin is a Poulsbobased management consultant, speaker, and mentor. He helps entrepreneurs, organizations, and small business owners to create remarkable 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; e-mail at dan@danweedin.com or visit the web site at www.DanWeedin.com.)
GOP ousts Esser, elects Wilber state chairman State GOP chairman and former legislator Luke Esser was ousted as chair of the party by longtime conservative talk radio host Kirby Wilbur. Delegates at the state Republican Party meeting held in Tukwila voted 69 for Wilbur, 36 for Esser and 7 for Bill Rennie. Esser made the claim that the state GOP was in much better shape than it was four years ago when he was handed the reins, but Wilbur emphasized how Republicans in our state didn't do as well as they should have in the 2010 elections given the tidal wave for the right Wilber hosted a conservative talk radio show on Seattle’s KVI for 16 years until his show was cancelled in 2009.
February Red Cross classes in Kitsap County The American Red Cross is Offering CPR, First Aid and other preparedness classes in Kitsap County during the month of February. All classes will be held at the West Sound Service Center at 811 Pacific Avenue, unless otherwise indicated. Special classes may also be arranged at your workplace, or among community groups. All classes are taught by certified Red Cross volunteers. Class fees support Red Cross services and programs in our community. Continuing Education Units are now available for many classes. Call (360) 377-3761 to request information. Classes are as follows: • Adult CPR/AED- 2 year certification ($48). Tuesday, Feb. 8, from 5:30 p.m. – 9:30 p.m. Tuesday, Feb. 22, from 5:30 p.m. – 9:30 p.m. • Adult CPR-AED, Infant & Child-CPR ($60). New two-year certification ($10optional BBP add-on- 1 year certification). Saturday, Feb. 12, from 10 a.m. – 2 p.m. • First Aid-New 2 year certification ($42). Thursday, Feb. 24, from 5:30 p.m. - 9:30 p.m. • Adult CPR/AED with First Aid. New two-year certification ($63). Saturday, Feb. 19, from 9 a.m. – 5 p.m. • Adult CPR/AED, plus Infant and Child CPR and First Aid. New two-year certification ($75). Saturday, Feb. 5, from 8 a.m. – 6 p.m. at Bainbridge Island Fire Department. Sunday, Feb. 27, from 8 a.m. – 6 p.m. • CPR for the Professional Rescuer and Healthcare Provider. New two-year certification- ($82) • CPR for the Professional Rescuer ( Lifeguard) 1 year certification. Friday, Feb. 11 rom 9 a.m. – 5 p.m. • CPR/AED and First Aid Review. New 2 year certification ($52). Friday, Feb. 18, from 9 a.m. to 1 p.m. Pre-registion is required as class sizes are limited. The American Red Cross shelters, feeds and counsels victims of disasters; provides nearly half of the nation’s blood supply; teaches lifesaving skills; and supports military members and their families. It is a charity, not a government agency, and depends on volunteers and the generosity of the American public to perform its humanitarian mission. The American Red Cross trains more than 11.7 million people each year in vital lifesaving skills such as First Aid and CPR. For more information on the Red Cross in Kitsap County, call the West Sound Service Center at (360) 377-3761 or visit www.westsoundredcross.org.
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Gregoire’s plan to privatize State IT sector By Charles Keating The governor recently announced plans to create a new charter agency, Consolidated Technology Services (CTS), which would handle the procurement of state technology services from outside entities. Currently, the state uses the Department of Information Services (DIS) to provide information technology (IT) services to state agencies. This plan is expected to save the state $32 million over four years out of a total spending of close to one billion for IT infrastructure. Looking at the details, the savings are split between $22 million from consolidating services to the new state data center, and the creation of CTS to replace DIS for an additional $10 million in savings, both over four years. CTS’ stated focus would be to “provide or procure” whichever would be more cost effective and the new agency would be free from many of the requirements of other state agencies in terms of hiring and contracts. On the surface, these efforts towards greater efficiencies in purchasing or providing IT services makes perfect sense, and should be a given. The state invested hundreds of millions in creating the new data center, and the resource should be leveraged. The rationale for this was to eliminate 32 separate state agency data centers, creating economies of scale. The state needs to achieve what it set out to do. The CTS board would be comprised of managers from the customer agencies to which the state would provide services, so this is not really a privatization but a shift to free this state entity from state hiring and contract rules to create more “private sector like” flexibility. While every saving adds up and should be considered, the total savings in comparison to the expenditure seems much smaller than expected. Part of that may be that while spending IT can remain constant, expectations regarding that investment can grow significantly and theoretically should provide significant cost savings and service improvements to other agencies. Given the rapid changes at the state level, these metrics and the impact of IT may be hard to measure, but as citizens paying the bills, we need know what we are getting and how our investments are panning out. Perhaps the CTS is necessary to correct deficiencies where the state could not achieve the savings it expected, but at least it’s a step in the right direction. The state needs to relentlessly purse efficiencies, and not just in bad times when money is tight. We look forward to seeing more proposal details as they develop. (Editor’s Note: Charles Keating is president of West Sound Technology Association (WSTA). He is also president of Keating Consulting Service (www.kcsco.com), an IT consulting practice which has been in business for nearly 30 years. He is also a principal in K2 Strategic Solutions (www.k2strategic.com), a partnership between Professional Options and Keating Consulting Service which has a combined 50 year history of providing technology, policy and management consulting.)
GM venture capital arm invests in charging mat maker
EFF asks judges to quash porn downloading subpoenas The Electronic Frontier Foundation (EFF) has asked an Illinois judge to quash subpoenas issued in predatory lawsuits involving alleged illegal downloading of pornography. In an amicus brief, EFF argued that the adult film companies were abusing the law in order to coerce settlement payments despite serious problems with the underlying claims. The brief is the latest of EFF's efforts to stop copyright trolls — content owners and lawyers who team up to extract settlements from thousands of defendants at a time. Tactics include improperly lumping defendants together in one case and filing it in a court far away from most of the accused people's homes and Internet connections. When adult film companies file these predatory lawsuits, there is the added pressure of embarrassment associated with pornography. All of these factors can convince those ensnared in the suits to quickly pay what's demanded of them instead of arguing the merits of their case in court.
North Kitsap Friends of the Library is hosting a workshop on “Social networking for business use: How Facebook, Twitter, LinkedIn and other online social media sites can improve the bottom line,” presented by Darin Hartley, author of 10 Steps to Successful Social Networking for Business; on Wednesday, Jan. 19 from 6:30 to 8 p.m. at the Poulsbo Public Library, 700 NE Lincoln Road. Social networking has transcended “trendy” and has become essential for many organizations. Companies large and small use it to facilitate marketing, increase sales, and provide customer service. Social networking is continually changing in many ways. The diversity of platforms and tools can be daunting, even to those who experiment with new technologies regularly. In this workshop, Harley will help to understand social media trends and decide on the best social networks for particular businesses or practices. He will show “best practice” examples of social networking for both small and large organizations. There is no charge for the workshop. For more information call (360) 779-2915.
Beta-launch of earthbongo.com We all do small things every day to make our environment a little safer, healthier, and greener. But at one time or another, many of us have a moment when we ask ourselves, “The world’s problems are so big; can what little I do make a difference?” As it turns out, yes, it can — especially when lots of people do small things that add up to make a big difference. earthbongo is now here to introduce you to your new community. Earthbongo is a new project sharing website that empowers people and organizations to collectively improve the world around them. Create a new project or join an existing one on earthbongo.com then invite friends to sign on to work with you in the real world. When done, report back to earthbongo and the site will compile data so you can measure your success. Earthbongo’s social network is based around active participation in the real world. Whether your focus is energy, education, local food, or the arts, everyone has something to contribute on earthbongo. “It’s not so much about the individual, but about the group,” says Founder and CEO Barry Boone. “On earthbongo, people can see that the small steps they take everyday to create a better world add up to something even more meaningful when they work with others.”
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February 2011 Kitsap Peninsula Business Journal•KPBJ.com 15
General Motors’ (GM) venture capital arm has invested $5 million in Powermat, which makes wireless charging mats for cell phones, and plans to include the mats in 2012 . With a Powermat, consumers’ phones will charge when they’re lying on the mat, without using any wires from the phones. Each phone must have a special silicon chip that Powermat provides and that it’s working to build into some phones. GM created its venture capital subsidiary in June with $100 million to give the automaker an edge in technology and becoming green. GM had included cell-phone charging mats in concept vehicles for a few years, but hadn’t developed the mats. So GM Ventures decided to invest in Powermat in exchange for an equity stake. Michigan-based Powermat, which has its research and development arm in Israel and production in China, holds 62 percent of the charging-mat market after about a year of consumer sales. After an undisclosed period of exclusivity, GM has agreed to let Powermats be installed in other automakers’ vehicles, partially because as an equity holder, GM will benefit from Powermat’s success. GM is also exploring a wireless mat that would allow electric vehicles such as its Chevrolet Volt to charge once they park over it, GM Ventures President Jon Lauckner said. Powermat’s current technology is probably not best for that mat, he said, but GM hasn’t decided which technology to use.
“Keeping up with Technology” workshop series offered
16 Kitsap Peninsula Business Journal•KPBJ.com February 2011
Understanding and capitalizing on Gen Y employees By Julie Tappero, President West Sound Workforce I’m a baby boomer, and my youngest child is a member of Generation Y. She graduated college last summer and now has her first real job. It’s been interesting observing her join the working world, and I’ve become more aware of how this generation is different from mine and others that have come before them in the workplace. There are various definitions of Generation Y, but it seems to broadly encompass those born somewhere between the early 1980s to the early 2000s. They are also referred to as the Millennials or the Echo Boomers, as they are the offspring of the Baby Boomers. They are estimated to number about 80 million people. As all of these people join the workforce, our management styles need to accommodate this unique group of workers. We raised them, and now we need to manage and motivate them to success! I think the best approach to working with Gen Y employees is to try to understand their distinctive traits, and how to capitalize on them. Here are ten tips for getting the best out of your Gen Y workforce: Happiest with a lot to do. While growing up, the Gen Y child had a lot on his or her plate. Sports, extracurricular activities, church groups, volunteering, excelling in school — we expected it all of them, in order for them to be successful. The result is an adult who needs to be challenged and wants many projects to be worked on at the same time. The Millennials’ upbringings produced people who appreciate deadlines, expect to be working towards goals and work well within structure. Positive high achievers. Our Gen Y children grew up being told that they could be whatever they want to be, and accomplish whatever they set their minds to. This means they enter the workforce armed with a lot of confidence and a can-do attitude. Many have been high achievers in school, having routinely received praise from their teachers and professors. They are not used to receiving criticism, or to not achieving their goals. As managers, we need to build on the positive strengths of this type of attitude, while
teaching them to maturely handle the realities of life in the workforce — including the fact that they will inevitably encounter failure and criticism in their working lives. It is imperative that we show our Millennial employees how to transform failure and criticism into motivation to improve and try again. Centers of the universe. As parents, we tended to be very involved with these kids lives. Now that they’re young adults, they are entering the workforce with the expectation that they will continue to receive lots of guidance and attention. They flounder when left too long on their own without sufficient direction. They want to know what’s expected of them and they want to understand how their role in the company fits into the larger business picture. Giving your Gen Y staff a more complete and holistic understanding of their place within your business and what you need from them will allow you to tap into their significant capacity for passionately tackling the tasks they’re given. Team oriented. Team sports and group projects have been the norm for this generation. We’ve taught them that when they work with others as a team they will accomplish more than they could on their own. Smart companies will put them in a team environment, where they will have opportunities to collaborate with others. They are not afraid to bring their ideas and solutions to the table, expecting to brainstorm and resolve problems. Multitasking is a way of life. It is not unusual to see a Gen Y’er watching TV, while simultaneously doing their homework, talking on their cell phone, and chatting on Facebook. To them it’s not multitasking — to them, it’s just every day life. They flourish in a fast paced multitasking work environment. They enjoy moving from project to project, working on many things at the same time. And they are bored to death when there is not a lot to do. This is a trait you should attempt to fully take advantage of, but not without going overboard. Pay close attention to your Gen Y’s productivity if you load them up with lots of duties that involve multitasking, to make sure that they aren’t handling more than they can actually process effectively. Technology-dependent. Speaking of technology, these kids cut their teeth on it, and it’s been part of their life as long as they can remember. They are eager adopters of
changing technology and in their personal lives they will continue to utilize new technology as it becomes available. They will not easily transition from a tech-savvy personal life to a tech-void workplace. Companies will benefit by utilizing their interest in technology to improve processes that are already in place, as well as to inventively use it to enhance everything from marketing efforts to communication and employee relationships. We want it all, and we want it now. Not only have they been users of technology, but they have grown up playing video games. This access to immediate gratification and feedback has created a generation that requires all of that from their managers. They can be impatient with inefficient processes, unproductive programs, and with unnecessary delays. They want immediate responses, frequent feedback and the ability to affect change. If your company is accustomed to providing performance reviews on an annual basis, this may not be the most ideal way to manage your Millennials. Try providing feedback at the end of every project they complete, or meeting with them semi-regularly to discuss how they’re doing. Tolerance for others. Generation Y is a very racially and culturally diverse generation. About one-half of them are Asian or Hispanic, many have gone to school with students of different racial or ethnic backgrounds, their families are more likely to involve a single parent or blended family and they are much more acceptable of gay and lesbian lifestyles. In addition, their access to technology has given them friends all across the globe, shrinking their world. They will be much less tolerant of workplace discrimination, and they are also much more tolerant of differences in each other. For many of our businesses, the future involves globalization, and these young workers can help take us there. Demand for flexibility. This generation has watched as their parents have worked long hours, burned themselves out, and eventually been downsized by their company. They come into the workforce void of corporate loyalty, knowing they will have many employers and many careers in their lives, and resolved to put themselves first. They will utilize technology and the network
it accesses to find new opportunities for growth if their employer doesn’t provide it for them. Their experiences with their parents’ lifestyles makes them demand work/life balance. They will seek companies that provide family friendly workplaces, flexible work arrangements, endorse volunteer activities, and other amenities that support their personal values. They appreciate a company that offers a fun work environment, where they can make friends and enjoy their workday. Committed to the triple bottom line. The Baby Boomer Generation told their children that they could and should make a difference in the world. As they see an unstable economic world, environmental concerns, corporate ills, political corruption, etc., they seek employers who share their personal values, and jobs that give them the opportunity to do more than take home a paycheck. The triple bottom line of people, planet and profit and a commitment to social responsibility may be a requirement to attract and retain these workers. As I counsel my Generation Y daughter as she progresses on launching her career, I realize that she has to bend somewhat to the workplace. I also realize that she brings tremendous talent, a great education, a wide variety of experiences, solid values, and excellent skills to the working world. She craves a company that will challenge her, demand a lot, utilize her strengths, make good use of her education, and enable her to make a difference. Since we Boomers have decided we need to stay in the workforce for a while longer in order to regain equity in our retirement funds, we are going to have to make room for these bright, eager workers that have so much to bring to the table. (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. Sign up for her monthly newsletter of HR articles at westsoundworkforce.com/hrnews. Email: julie@westsoundworkforce.com. 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.)
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Important breakthroughs in local economic development By Bill Stewart When Profile Composites CEO Geoff Wood announced last month his intent to locate R&D and manufacturing operations in Kitsap County, it signaled some important breakthroughs for economic development on the Kitsap Peninsula: • A new manufacturing business expected to employ up to 200 over the next five years; • A training and hiring preference for disabled persons, particularly veterans; • Product development and manufacturing utilizing composite materials; • Co-location of a partner R&D company based in Ohio; • Potential emergence of a new industry cluster on the Peninsula. Wood’s decision to locate here is largely due to a strategic partner relationship with another company with a Kitsap presence you also may not have heard about — the National Center for Manufacturing Sciences (NCMS). Profile Composites (based in Sidney, B.C.), NCMS (with headquarters in Michigan), and the Ohio company — A&P Technology — have collaborated on projects in the past and plan to do more together. NCMS’s Mike Fancher put it all in motion. He leads the Bremerton office of
the NCMS, a national non-profit corporation with extensive experience organizing companies and developing/deploying advanced technologies. Much of their experience has been gained in the defense industry. Not coincidentally, A&P Technology is a contractor to both Boeing and Bell Helicopters, and Profile Composites has collaborated on projects. It made sense that they would want geographic proximity for future work. Companies such as Profile Composites, A&P Technology and NCMS bring us more than initial jobs and investment, although we are certainly hungry for those. Wood has articulated on several occasions the opportunity to grow the advanced materials industry in Washington, and his choice to locate in Kitsap has the potential to make us a destination for other companies in this cluster. If it continues on its current course, it will bring international reach. A major carbon fiber supplier, Toray Composites is located in neighboring Pierce County and is already a supplier to Profile. Toray’s parent company is headquartered in Japan; Profile Composites in headquartered in British Columbia. Profile’s initial production will be assistive devises developed by Side Stix, another British Columbia company. Last spring, Governor Gregoire participated in an announcement in Moses Lake where Germany’s BMW and SGL Carbon Fibers
will establish a $100 million carbon fiber manufacturing plant expected to employ 200. And Angeles Composite Technologies, Inc., an Alaska Native corporation, announced this fall it will expand in Port Angeles, adding 100 jobs. Our next opportunities to advance this cluster in Kitsap will be in identifying and attracting more end-user companies of advanced materials such as Profile Composites, and/or companies that will utilize carbon fiber components in their own production. They will now have access to two critical operating needs: the material, and the ability to train a workforce that knows how to work with it. Kitsap already has the industrial land (Port of Bremerton and private); workforce training (Olympic College, Olympic Workforce Development Council, Employment Security, Skookum), competitively priced power (PSE), access to global transportation and communications systems, and a highly desirable living environment. We also, perhaps to the surprise of many, have a state tax structure that is favorable to profitable companies and one that historically incented producers and users of advanced materials. It will be our collective job to continuously improve and bundle these location and operating assets, and take the business case to the marketplace. Thanks to NCMS, Profile Composites and A&P Technology… Advantage Kitsap.
Gig Harbor hosting Criminal Justice Summit
February 2011 Kitsap Peninsula Business Journal•KPBJ.com 17
The Gig Harbor Criminal Justice Summit is scheduled for Feb.28 – March 2 at the Inn at Gig Harbor. This year’s event, hosted by Gig Harbor area Judge Michael Dunn and the City of Gig Harbor, features a wide variety of informative speakers and sessions and provides attendees a total of 12.5 CLE credits. The three-day event registration fee is $175, including meals. Space is limited. Speakers include: • Ann Rule: Best selling crime writer • Parealla Lewis: Washington’s most wanted correspondent • Russ Hauge: Kitsap County Prosecutor • John Batiste: Chief, Washington State Patrol • Rob McKenna: Attorney General • Many other session professionals. Sessions include: • Driving Restraints, Bail Issues and Release Conditions • DUI Victims • Impaired Driving • Safer Highways and Communities • Alcohol/Drug Treatment and Probation/DRE • Ethics The conference also includes a social event at the new Harbor History Museum with a meet and greet with Ann Rule. The Inn at Gig Harbor is the hosting hotel for the event. To download a registration packet visit www.gigharborguide.com/files/library/18 9b8830828cb61a.pdf or call Paul Nelson at the Gig Harbor Court at (253) 853-7639.
18 Kitsap Peninsula Business Journal•KPBJ.com February 2011
February 2011 Edition
Events And Activities Wednesday, February 2nd Kitsap HBA Remodelers, 4:00 p.m. Bring your 2011 L&I Premiums Statement 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 Reservations Required Tuesday, February 8th Builder Breakfast w/Josh Brown, 7:30 a.m. @ WHEATON Way Family Pancake House Peninsula Home & Garden Expo Com. Mtg, 12:00 p.m. Thursday, February 17th QuickBooks: Made Easy, 8:00-12:00 QuickBooks: Maximize Your Investment, 1:00-5:00 Tuesday, February 22nd Peninsula Home & Garden Expo Committee Meeting, 12:00 p.m. Thursday, February 24th Executive Committee, 2:00 p.m. Government Affairs Committee, 2:30 p.m. w/ Guest, Prosecutor Russ Hauge Board Meeting, 3:30 p.m. Saturday, February 26th CPR/First Aid Class, 10:00-2:00 February 28 - March 2 BIAW State Board Meeting Red Lion Olympia March 18 - 20 PENINSULA HOME & GARDEN EXPO Kitsap Fairgrounds
Installation and Awards Banquet Celebrated and Honored Many In January, over 100 HBA members turned out for the Installation and Awards banquet. This night is a great time to socialize with old and new friends and includes important recognition of the dozens of volunteers that keep our events and committees on track throughout the year. In addition to recognizing the Officers, Directors, and Ccommittee chairs, 2010 President, Ron Perkerewicz honored several people with Special President’s Awards, which includes the Public Official of the Year Award. The 2010 Public Official of the Year award went to James Weaver, City 1983 Past President Jim Ingalls Development Director for the City of Port shakes 2011 President Justin Orchard. James’ vision, problem solving, and Ingalls hand after swearing him in. “get it done” attitude garnered him this coveted and special recognition from the HBA. Additionally, President Perkerewicz recognized David Godbolt, of Sentinel Construction for his leadership and vision in fulfilling the wish of a young boy in our community participating in the Make-a-Wish organization. From a sketch of a pirate ship to a remarkable final product fit for the fantasies of any young boy, David Godbolt and his mates (the Kitsap HBA Remodelers Council) brought to fruition a project all HBA members can be very proud of. Also recognized by President Perkerewicz was Bob Simonoff, of Westshores Interiors. Bob has been a long standing and active member of the HBA. He was instrumental in the development of the Peninsula Home and Remodel Expo, chaired the Associates Network, served as a dedicated member of our Board of Directors and has Co-Chaired the 2008&2009 Remodeler of the Bike and Rod Run with proceeds going to Year, Wayne Keffer awards Judy Hang on Kitsap. Congratulations to each of Granlee-Gates the 2010 Remodeler of the Year Award. these deserving winners. Also recognized in January were three other important volunteers at the HBA. Each year, the HBA has a process for receiving nominations and selecting its Builder Member of the Year, Remodeler Member of the Year, and Associate Member of the Year. The winners for 2010 are as follows: • Builder Member of the Year: Justin Ingalls, Kitsap Trident Homes • Remodeler Member of the Year: Judy Granlee-Gates, Joe Gates Construction • Associate Member of the Year: Shawnee Spencer, Kitsap Credit Union
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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Please take a minute to congratulate and thank each of these very special and dedicated volunteer leaders of the HBA. Congratulations go out to each and every one of the 2010 volunteers recognized, all the special award winners, and to our past and present Officers and Directors. This association depends on each and every one of you, and we all thank you for your service.
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
February 2011 Edition
We are already into the second month of 2011. Our Justin new officers have been Ingalls installed into their roles of your Home Builders Association of Kitsap Trident Homes Kitsap County and we are off 2011 President and running to provide for you. In the days following the installation dinner, the executive committee had an afternoon retreat allowing us to generate ideas and set a plan for the coming year and years. The calendar is filling up with education classes as well as chances to meet face to face with our local political officials through out the community at Builder Breakfasts and Government Affairs Meetings at the HBA Office. There are also plans being implemented for member-to-member networking opportunities, such as a social in April and a picnic in August. We will be working with Kitsap County in holding an afternoon event to answer more questions and to actually get our members signed up on the Small Works Roster. This is a great opportunity for you to gain potential jobs working with the County in all phases of construction and beyond. It will also allow you to be eligible for work on the HBA Office, while we partner with them on a federally funded Stimulus project. The Home and Garden Expo will be this March 18-20 in the Kitsap Sun Pavilion. This is a wonderful chance to interact with your local builders and associates if you are looking for a new home, a remodel or landscape project, or just trying to update some appliances or floor coverings. There will be a wide range of booths and exhibits that I’m sure you will find beneficial. It’s a great way to get out and to find yourself some great ideas from your local professionals. If you are planning a remodel or construction project, please consider the risk you could place on yourself without knowing it. One of the many problems plaguing our industry these days is the unregistered contractor. They are getting jobs that should be going to those who are following the laws, carry bonds, have insurance and pay into workers compensation coverage. Before beginning your project, protect yourself and your property by using the verification services provided to you by the Washington State Department of Labor and Industries. It is a simple process and can be found at www.lni.wa.gov. At the Labor and Industries website, you will find some tips on what to do prior to hiring a contractor or remodeler such as why it’s important to plan your project carefully and interview several registered contractors, get bids in writing and ask for references. The important part here is to follow up with the references and also their suppliers and their payment records. Once you have made a selection be sure to receive a written contract that includes price, terms, taxes and the scope of work to be completed, including materials. Another resource you may find of interest is L&I’s contractor website at www.contractors.lni.wa.gov. This site will help you find information such as a contractor ’s registration, if they have compensation insurance for their employees and if there are any pending or past actions against their bond. By referring to both of the above you can ensure you are protecting yourself and your investment. Unregistered contractors have been a conversation that has come up on more than a couple of occasions. The Kitsap HBA Remodelers Council, chaired this year by David Godbolt of Sentinel Construction and Consulting, has this topic on the agenda for discussion this year. If you are interested in being involved in the Council or for more information, please contact our staff at the HBA office at (360) 479-5778.
Doing Business with Members The membership is the key to this association. It is through our membership CGP that we find great volunteers and great leaders that work Executive every day for the betterment Vice President of this association and the community as a whole. The Home Builders Association of Kitsap County has been here for its members, industry, and community for well over 50 years now. During those years our services have grown and changed, but one thing that hasn't changed is our commitment to your needs as businesses working to provide safe residential and commercial structures for our community. All the while tirelessly working to stave off increasingly expensive regulation which both holds homeownership dreams at bay but also thwarts economic development in the commercial sector as well. In a recent conversation with an HBA member, I was surprised to find that they really weren't sure what other types of companies were members of the association. They were unaware that our membership is made up of residential and commercial contractors, land developers, mortgage lenders, real estate professionals, accountants, interior designers, architects and so much more. It is through that diversity that we have built our excellent reputation and have been able to provide a vast array of tools, services, and support to so many. If you are unaware of the membership, please take some time to review the list of members on our website. Seek out businesses that provide services you need that are also members of the association. When changing providers, or seeking services for the first time, make your first stop the HBA membership directory. When you do business with members; they will do business with you. In the coming months there may be several opportunities for members to do business with the HBA. We haven't historically been in a position to need a wide array of member services but with an HBA project house and retrofits to the HBA building planned for the near future, it is important our members watch for RFPs (and respond) as well as register on the County's Small Works Roster. The HBA weekly ENews email newsletter includes updates and reminders about these efforts as well as information on RFPs we have out (or will have out). Please read that email and take action when asked to. Remember, your membership matters to the HBA. We are here to help you and look forward to your calls and emails. If you have questions about your membership and how to make the most of it, please call me. There has never been a better or more important time to be a member of the HBA of Kitsap County.
Teresa Osinski
EDUCATION Education is available to both member and non-member companies and the public. Unless otherwise noted, registration & payment is through BIAW at 1-800228-4229. If registration and payment is through the HBA, call 360-479-5778 for info. • February 17th QuickBooks Made Easy 8 a.m. to Noon QuickBooks — Maximize Your Investment 1 p.m. to 5 p.m. • February 26th 1st Aid & CPR Certification/Re-certification 10 a.m. to 2 p.m. To attend this class, please register with the HBA. • May 21st 1st Aid & CPR Certification/Re-certification. 10 a.m. to 2 p.m. To attend this class, please register with the HBA • May 27th Customer Service 8-5 • September 15th Lien Law 8-12, Construction Contracts 1-4:30 • October 8th 1st Aid & CPR Certification/Re-certification. 10 a.m. to 2 p.m. To attend this class, please register with the HBA • October 11th Business Management for Building Professionals 8-5 • October 18th Building, Marketing, Financing & Appraising Green 8-12:30
February 2011 Edition
Government Affairs Committee
Money $aving Programs for MEMBERS ONLY
Wayne R. Keffer, WRK Construction, Inc.
Did you know YOU have access to a huge array of discounts just because you’re a member? Save money! Max out all that the HBA has to offer! Resolve to use these benefits in 2011. Health Insurance — Our group health program provides members health coverage with a variety of options and hard to beat prices. Nonmembers can also get a quote, but to buy the insurance you need to join the HBA. Plan options have very competitive rates. Call us for a quote application or visit www.epkbenefits.com for details. Member Advantage — As an NAHB benefit, our members have access to discounts and savings opportunities offered by many top companies. All programs, rates, and prices are subject to change without notice. The Member Advantage program includes GM, Office Depot, Hertz, Liberty Mutual, HP, Dell, FedEx and other companies as well. Visit www.nahb.org/ma to start saving your company money.
2011 Chair If there was a way to adequately say thanks I would! When I say this I am thinking particularly of the Home Builders Association of Kitsap County’s Builder Member of the Year, Justin Ingalls of Kitsap Trident Homes; Remodeler Member of the Year, Judy Granlee-Gates of Joe Gates Construction; and, Associate Member of the year, Shawnee Spencer of Kitsap Credit Union. Each of them is an example of giving of there time to help our organization’s members. It is through their commitment, and on their committees, that you find the day-to-day interactions that bind members together. This is seen in members becoming better business owners, including interfacing with our community and elected officials, and most importantly members developing new, long lasting relationships with other members. Thank you for your leadership, dedication, and service to this organization and to our community at large. As the year is well under way I am excited about the schedule for the government affairs committee. We have had great responses to our many invitations to the decision makers that affect our industry and community at large. In January we met with several fire commissioners. I have a better understanding of the role they fulfill and what their vision is for things such as community protection and safe housing. At the February 24th Government Affairs Committee meeting we will meet with Kitsap County Prosecutor Russ Hauge. It will be a good opportunity to discover more about what the prosecutor ’s office does, how and why. In the past several months this office has been in the paper due to actions taken about a local gun range, sending prosecutors to traffic court to improve fine collection for the county, and budget problems, like all other County Departments. This is a great opportunity to better understand the role of the prosecutor ’s office. The attorneys advising DCD are from the prosecutor ’s office too. Understanding these roles is important when doing business in Kitsap County. I look forward to getting a chance to visit with our County Prosecutor. I hope you will attend also. January and February are just the first of several key meetings we will hold this year. The Home Builders Association of Kitsap County encourages all of its members to come to the Government Affairs Committee meetings. By taking the time to engage the variety of guests we have each year at these meetings can only improve your expertise as a business owner and service provider in Kitsap County. It is an opportunity to develop relationships, allowing each of us to make better informed decisions for the HBA, or our employees, or our customers. I encourage you to come last Thursday of every month at 2:30. I am also the Chair of the Affordable Housing Council’s annual dinner and auction committee. This fun event is set for May 13 at the Kitsap Golf and Country Club. Not only is this one of the most fun events of the year, it is also very important to the Council. Please mark your calendar, consider sponsorship, look for new items you can donate and help the AHC with another great event.
National Purchasing Program To access the following benefits, you will first need to register at www.mynpp.com and then begin enjoying the additional membership benefits provided through our National Purchasing Program options. This program includes additional savings for our members. Visit the website for all the options, but two popular programs are: Staples Business Advantage — offers up to 82% off of list pricing & more! Verizon Wireless — A program that offers a 22% discount on monthly bills and discounts on wireless equipment and more. If you have any questions on any of the great benefits your membership in the Home Builders Association of Kitsap County provides you, please call the HBA at 360-479-5778 or email info@kitsaphba.com. We look forward to assisting you.
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!
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February 2011 Edition
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. LIFE SPIKES CREDITS Jim Smalley . . . . . . . . . . . . . . . . . . . . . . . . . 380.5 Tim Burke . . . . . . . . . . . . . . . . . . . . . . . . . . . . 318 Gale Culbert. . . . . . . . . . . . . . . . . . . . . . . . . 265.5 Dee Coppola . . . . . . . . . . . . . . . . . . . . . . . 242.75 Kerry Chamberlin . . . . . . . . . . . . . . . . . . . . 235.5 Dale Armstrong. . . . . . . . . . . . . . . . . . . . . . 235.5 Bill Parnell . . . . . . . . . . . . . . . . . . . . . . . . . . 217.5 Michael Hancock . . . . . . . . . . . . . . . . . . . . 187.5 Andy Mueller . . . . . . . . . . . . . . . . . . . . . . . . . 185 Douglas Woodside . . . . . . . . . . . . . . . . . . . . . 182 Kevin Parnell . . . . . . . . . . . . . . . . . . . . . . . . . 176 Bob Helm . . . . . . . . . . . . . . . . . . . . . . . . . . . 175.5 John Armstrong. . . . . . . . . . . . . . . . . . . . . 150.25 Rick Courson . . . . . . . . . . . . . . . . . . . . . . . . 148.5 James Ingalls . . . . . . . . . . . . . . . . . . . . . . . . . . 143 Randy Biegenwald . . . . . . . . . . . . . . . . . . . 123.5 Greg Livdahl. . . . . . . . . . . . . . . . . . . . . . . . . . . 94 Robert Lubowicki. . . . . . . . . . . . . . . . . . . . . . . 91 David Smith . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 Michael Brown . . . . . . . . . . . . . . . . . . . . . . . 84.5 Larry Ward. . . . . . . . . . . . . . . . . . . . . . . . . . . 82.5 Jeff Coombe . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Dori Shobert . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Lary Coppola. . . . . . . . . . . . . . . . . . . . . . . . . 54.5 Rick Cadwell . . . . . . . . . . . . . . . . . . . . . . . . . 43.5 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 . . . . . . . . . . . . . . . . . . . . . . 35.5 Justin Ingalls . . . . . . . . . . . . . . . . . . . . . . . . . 32.5 Wayne Keffer . . . . . . . . . . . . . . . . . . . . . . . . 29.75 Steve Crabb . . . . . . . . . . . . . . . . . . . . . . . . . . 29.5 Steve Brett . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Barry Keenan . . . . . . . . . . . . . . . . . . . . . . . . . . 26 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
SPIKE CANDIDATES CREDITS Walter Galitzki. . . . . . . . . . . . . . . . . . . . . . . . . 3.5 Brad Reid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Corey Watson . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Derek Caldwell. . . . . . . . . . . . . . . . . . . . . . . . . . 3 Frank Murr . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Jim Heins. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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
Thank You Renewing Members Over 25 Years Cascade Natural Gas (44) Land Title Company (40) Olympic Property Group (22) 20 Years to 25 Years Kitsap Sun 15 Years to 19 Years Fairbank Construction Co Inc
24 hour emergency clean-up
10 Years to 14 Years Accurate Builders Camp Corporation 5 to 9 Years Ahearn Electric Inc Robison & Sons Sound Plumbing
2 to 4 Years DBC Construction LLC Herdman Plumbing LLC Homewood Const. LLC Krazan & Associates First Year Renewals Storeybuilding LLC
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The stairway to nowhere — the downtown housing real estate path By Amy Burnett Downtown Bremerton housing history defies one’s wildest imagination. The gun-toting, brothel-baring city reluctantly shaped up in 1905 when the US Navy threatened to pull out of town if it didn’t shape up. Blue-collar neighborhood cluster houses began to blanket the rolling city hills. The moderate houses were, for the most part, each unique to themselves. A lot of those hundred year-old modest houses still stand. My great grandparents and grandparents arrived by covered wagon around that time. They homesteaded and built a log house in the area where the Bremerton National Airport is now. During World War I the government took the property and paid them one dollar. Expulsion drove them to downtown Bremerton where work opportunities abounded and houses were available. Even during the Great-Depression, Bremerton played a different role, as the city sidestepped the devastation. Then during World War II, Bremerton’s oddball reputation continued. Wartime residency skyrocketed. Fast built box-like structures were erected about anywhere they would fit to accommodate the instantlydoubled-population. And a few of those can be seen today. After the war, young “boomers” experienced the Mrs. Clever casserole era, and blue-color prosperity merited the city inclusion of the rambler-style house, as can be seen today.
But always that rollercoaster — the eighties came along and so did the wagon train departure out of town, taking with it the homeowners. Blight, crime, low-income rentals and empty commercial buildings — “hello nineties.” Now an artist and marine mechanic could afford a building — enter me. There was also a waterfront condo attempt. My name was first on the list. The project did not get off ground, so I bought a house at the end of Washington Avenue, so to appreciate and assure I could afford a condo in the future. The new millennium was around the corner, and the stock market was having a field day. The best part of my day was loading yet another original painting in a Microsoft worker’s Mercedes trunk. But Bremerton? Still blight and over fifty percent rentals, where remodeling or maintenance was often done in a less than adequate manner. And those houses are seen today. At the time, I put an ad in the paper, “Artist looking to buy house near ferry terminal and will pay fifty thousand cash.” I was bombarded with calls and bought two houses. One of the houses was next to the downtown 7-11 Store, a crime-ridden area. The first week I had the house, a transient was beaten and killed on my front sidewalk. And oh the two thousand years — “Are houses really selling for that much?” Bremerton never fails us with its rollercoaster extremes. But this time, the “crumble of extremes” were felt everywhere, nationally. There was a difference though — statistics were forecasting that downtown Bremerton
would have a better rebound. Again, I enter the picture. This time, vying to purchase one of the Goldberg foreclosure houses around the Evergreen Park area. The foreclosure situation is a sign-of-the-times reality in Bremerton’s downtown neighborhoods. It has always seemed that the way I compete with developers and major investors is that I have a staying-power, and I literally have a personal love for those houses. And enter today, and still downtown Bremerton’s real estate situation defies one’s imagination. I did buy another house, one of those hundred-year old remodeled-on-ashoestring high bank waterfront gems. This time in history marks a new note. Tenants lived in that house for some four years. To the best of their means they painted and fixed it up. They apparently loved it, and when it came up for sale they put in their bid, which was accepted.
I was bidding on one of the other four neighboring foreclosed parcels, but an investor made a parcel bid for all four, disappointingly leaving me out. The neighboring house that the renters were purchasing — they had the credit and it was being taken to the end when an insurance technicality did not make them eligible. I heard that she cried. Hearing that I did also. That house, It is now mine, and all Bremerton’s historical segments can be seem there — in that hundred-year old house that was disfigured, remodeled, rented over and over, part of a bank foreclosure. So now I stand looking to a stairway that leads nowhere, for the entire second floor was removed at some time in Bremerton’s history. In closing, will I be purchasing a downtown waterfront condo? I think that they are great, but the old Bremerton history has captured my future.
Illahee Manor Bed & Breakfast under new ownership The Illahee Manor Bed & Breakfast, located at 6689 Illahee Road in Bremerton, has changed hands. Built in 1926 by Russian immigrants, the new owner is Teresa Williams, who says the B&B is a perfect romantic getaway for honeymoons, anniversaries, birthdays and other special occasions. The facility, which can accommodate up to 49 people and features beautiful grounds with beach access, is also available for business meetings and retreats. Gift certificates are available as well. For more information, call 360-698-7555, or reach Williams at illaheemanor@qwestoffice.net.
Partners In Success
Zimmer announces retirement from construction business
Pacific Northwest Title Sales Team...
East Bremerton – For Lease
Left to right: Lori Bullard, Sales Representative/Title Officer, 13 years; Vickie Lawrence, V.P./Sales Manager, 8 years; Kelsey Kilen, Sales Support, 2 years; Mindy Teigen, Sales Representative, 5 years; Julie Evalt, Lender Representative, 22 years
Providing superior customer service and professionalism to every real estate transaction.
4040 Wheaton Way in Bremerton
SILVERDALE OFFICE 360-692-4141 • 800-464-2823 2021 NW Myhre Road, Suite 300 Silverdale, WA 98383
• Located on Wheaton Way corridor • Three building retail/office complex • Professionally managed • Ample parking • 960 to 3,578 SF available • Rate $18.00 FS to $14-$15 NNN • Triple net charges est. at $4-$6/SF
BAINBRIDGE ISLAND OFFICE 206-842-2082 • 800-884-7636 921 NE Hildebrand, Suite 200 Bainbridge Island, WA 98110
PORT ORCHARD OFFICE
Please Contact: Chris Wray Bradley Scott Commercial Real Estate
(360) 479-6900 • (800) 479-6903 www.bradleyscottinc.com
Title Insurance Escrow Services Real Estate Resources
360-895-7799 1382 SE Lund Avenue, Suite 1 Port Orchard, WA 98366
www.pnwtkitsap.com
February 2011 Kitsap Peninsula Business Journal•KPBJ.com 23
Well-known North Kitsap construction contractor Carl Zimmer recently decided that after 45 years in the business, that he would call it a career. Zimmer Construction is primarily known for doing high-quality excavation and road work. Zimmer said he has sold some of his equipment and materials to 20-year employee and friend Pete Kelly, who has started his own firm, Pete Kelly Construction. Zimmer recommends him highly to his past clients. Zimmer and his wife Candy plan on a leisurely semi-retirement. He said he’s not riding off into the sunset, and after liquidating what equipment Kelly doesn’t buy, he will still operate a sand pit business he owns off Highway 3 near Lofall, as well as the Graben Grimm Industrial Park just outside of Kingston, which he developed with partner, longtime friend and fishing buddy, Bill Parnell.
Gates named 2010 Remodeler of the Year
Castle to consult on LID and permitting issues Art Castle, who recently retired after almost two decades leading the Homebuilders Association of Kitsap County (HBA) has accepted a temporary position as the Interim Assistant Executive Vice President for the Building Industry Association of Washington (BIAW). The position will last until BIAW hires a new permanent Executive Vice President. He has also formed a new company, Art Castle Consulting, LLC, which will provide consulting for builders, developers, and homeowners to help them solve stormwater permitting issues through the application of low impact development (LID). He will also consult with government entities on LID implementation. Castle is known as Kitsap’s “Father of LID,” having brought the concept to the county, and using the HBA’s office site for a demonstration project. A testament to how well LID works, during the December 2009 flooding — some of the worst in Kitsap’s history, the HBA office was of the few places that remained high and dry. Reach Castle at (360) 731-4444, ArtC@biaw.com, acastle@wavecable.com, and http://twitter.com/Art_Castle.
The Kitsap County Homebuilders Association has chosen Judy Granlee-Gates of Joe Gates Construction, Inc as the 2010 Remodeler of the Year. The award is given to the member who is actively involved in community activities and organizations, the Homebuilders Association, the Remodelers Council and the community. “I am very proud to a part of the HBA and the Remodelers Council, who do so much for the community including our handicap ramp program, the Pirate Ship that was built for Make-A-Wish and Build a Better Christmas to provide Christmas gifts to the residents of the YWCA Alive Shelter,” said Granlee-Gates.
Judy and her husband and partner, Joe, have been in business since 1989, and along with turn key remodeling projects they offer full service custom homebuilding. They can be reached at (360) 697-3284 or visit the website at www.joegates.com.
Vanessa Wilson joins Karin Kay Properties Karin Kay announces the newest addition to her team, Vanessa Wilson. She has joined the Bremerton based real estate firm as its newest real estate broker. Wilson has always had a passion for real estate and is hoping to grow her dream, of helping people find the perfect home, into a successful business. Her background involves remodeling, interior design, sales and customer service. She will be focusing on residential listings and sales, while she trains in land development. Kay is excited that Wilson brings with her a fresh perspective and states, “Her enthusiasm and initiative will make her an outstanding broker with a commitment to quality service”. Reach Wilson at 237 Sixth Street in Bremerton or at (360) 479-7653 and vwilson0425@aol.com.
24 Kitsap Peninsula Business Journal•KPBJ.com February 2011
Kitsap Realtors and lenders reach out to support foster children
Jennifer Nance Bremerton 360-405-5008
Phil Cook Bremerton 360-405-5007
Gena Black Silverdale 360-337-4309
Bank of America, N.A., Member FDIC Equal Housing Lender © 2011 Bank of America Corporation. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. 00-62-0112D 01-2010 AR70163
Elizabeth Robie Silverdale 360-337-4307
Fidelity National Title Insurance Co., in conjunction with Kitsap County Realtors and lenders, successfully concluded the first annual Foster Care Clothing Drive supporting Kitsap Foster Care Association. When asked what was needed most, Phyllis Bishop, vice president of Kitsap Foster Care Association, responded with, “New socks, pajamas and underwear for our teenagers.” She said, “It’s easy for people to buy for the smaller children, but it’s the older teenagers that seem to miss out.” This hit close to home as Chris Garcia, account manager with Fidelity National Title, recently adopted four teenage foster children over the past two years. “My wife and I have been recipients over the years from Kitsap Foster Care Association’s support with school supplies and training so it is great to be able to give back.” Kitsap County Realtors and lenders responded with immediate support. “This also touched home with some of them who, at one time or another, were in the foster care system themselves,” said Jason Krause, account manager of Fidelity National Title’s Port Orchard branch. “We are all looking forward to next years clothing drive.” For more information about the next Foster Care Clothing Drive, or to inquire about becoming a foster parent, call (360) 692-4556 or email Chris at christopher.garcia@fnf.com.
Port Orchard music store fills gap left by closed business By Rodika Tollefson Darren Erickson recalls growing up in downtown Port Orchard and visiting DJ’s Music Store, founded by the late DJ Watson more than three decades ago. Watson’s wife, Diana, kept the doors open after her husband’s death in 2003, but the business closed last year. Erickson and his partner, Pamela Bilodeau, couldn’t bear the thought of their town without a music store. The couple were too late in trying to buy DJ’s before it was shut down, but they didn’t give up. In October, they opened Mainline Music (mainlinemusicstore.com) in the Westbay Center, and traffic is slowly building up.
What’s old is new again at Silverdale’s newest auto dealership, Silver City Automotive. Silver City Automotive is unique from the run-of-the-mill dealerships because its added a touch of nostalgia to the pre-owned car buying experience. Owned by longtime car dealer Rick Hern, who for most of his career has been associated with his family’s business, the Courtesty Auto Group in Poulsbo, a visit to the dealership will take you on a stroll through years gone by. Experience the atmosphere of a 1950’s era soda shop, complete with hot dogs, pop corn, and classic memorabilia. Nostalgia isn’t all that’s offered either — Hern says the dealership will build its reputation on what he calls, “The Silver City Automotive is best known for the “Silver City Difference” — a standard of excellence for its entire used car inventory that means buyers will receive the best possible vehicle for their money. The Silver City Difference includes: • 99 Point Vehicle Inspection • 3 Month, 3000 Mile Warranty • 1 Year of Roadside Assistance • 48-Hour Money Back Guarantee • Check Title Report • Kelly Blue Book Pricing • “New to You” Benefits • Silver City Rewards Program Silver City Automotive encourages anyone who would like more information to call (360) 337-1600, send an e-mail to info@silvercityautomotive.com, or stop by and see for yourself.
February 2011 Kitsap Peninsula Business Journal•KPBJ.com 25
“We’re getting great response from the community,” Erickson said. “The community is excited we’re here. This town deserves a good music store.” A graduate of South Kitsap High School who used to be a vocalist in a few bands, Erickson is a longtime resident who commuted to his job at radio station 102.5 KZOK, where he worked as production director. His career there ended in 2008 after 17 years, but not his passion for music. Bilodeau, who is a professor at Olympic College, is a musician who plays several instruments including the harp and the guitar. The couple are new to business ownership but have combined their talents and experience to put together a business plan and launch their enterprise. “We decided to fill the gap, it’s too far between music stores,” Erickson said. He acknowledges the times are rough with the economy (the couple financed the business by getting a loan against their Manchester farm) but said, “somebody had to do it.” Since opening the business, the partners have been trying to become experts in all things music. The store caters to a broad range of customers, offering both string and wind instruments, as well as accessories, sheet music, repairs and a rental program for students. The store also rents space to music teachers, and Erickson said lessons are available in all instruments except violin. Students range in age from preschoolers to seniors. Plans include hosting live music events once a month to showcase local talent and Erickson said he sees expanding the space eventually. “We’re here to stay,” he said. “…It’s a place for music lovers to come and be around other music lovers… In tough economic times like these people fall back on important things like family and friends, and nothing brings people together like music.”
New and old collide at Silver City Automotive
Coffee Oasis: A nonprofit enterprise serving youth in crisis By Rodika Tollefson For the past few years, Rocky Basile has been working his way up at his job as one of the supervisors at Coffee Oasis in Bremerton. In addition to serving customers who and being the coffee roaster, Basile is a mentor to troubled youth who come in the door for the various programs and ministries offered by the Coffee Oasis’ parent organization, Hope in Christ Ministries. For the 28-year-old father of a 7-year-old son, many of the kids coming in are a familiar picture: Just seven years ago, Basile was in their shoes. When he first stumbled into The Coffee Oasis (www.thecoffeeoasis.com), he was drunk and was looking to pick a fight. “I was at the worst point in my life,” he said. Since then, not only has he stopped living a life that bounced him from home to home, he has found a new career and has been trying to help other at-risk youth to change their life. One of the things that compelled him to turn his own life around was an encounter,
26 Kitsap Peninsula Business Journal•KPBJ.com February 2011
Burwell Coffee Oasis store interim manager and coffee roaster Rocky Basile on that first day, with a Coffee Oasis staff member, who took him aside and offered him a fresh start. “I could see the genuineness — it was like the first real person I talked to,” Basile said. When the opportunity came to do an internship at The Coffee Oasis a while later, Basile took a risk by quitting an entry-level job with the city. “I started to see the impact (the organization) had on me,” he explained the decision. Basile is one of the many success stories from Hope in Christ, a nonprofit that serves as the umbrella for The Coffee Oasis — a name better known around Kitsap than the parent organization, thanks to the several businesses it operates, including a restaurant in Port Orchard and a coffee stand in the Norm Dicks Government Center in Bremerton. The businesses serve a dual purpose: In addition to using the profit to pay for more than half of the organization’s operations, they also provide training opportunities for teens. Last year, a job training program was added, thanks to a grant from the Boeing community employee fund. Currently, Hope in Christ works with five local businesses in Port Orchard and Bremerton that employ the youth for 180 hours, and
more businesses are being recruited. The organization is in its 15th year of operation and includes tutoring, street outreach, mentoring, job training, case management and other programs. The Coffee Oasis in Bremerton also hosts teen night events and a church called The Refuge. “Our overall purpose is building successful businesses while transforming broken lives,” Executive Director Dave Frederick, a former fulltime pastor and volunteer police chaplain who founded the organization with his wife, Cindy. Frederick became familiar with the issues of homeless teens when he volunteered as chaplain for the police department. The couple began inviting homeless youth to live in their home. “It changed our hearts. We saw the need and we wanted to be part of filling the need,” he said. Starting out with the idea of providing a place for teens to hang out on Friday nights, they had a difficult time finding an affordable location until a 1,000-squarefoot coffee shop called Coffee Oasis came up for sale. The following year, they moved to their current building in Bremerton, on Burwell street, expanding to serve a much greater need. The building now includes laundry and shower facilities and two years ago, it became a severe emergency shelter under the county’s Department of Emergency Management auspices (this year open only to people under 25). The organization’s other operations include a drive-by coffee shop in Bremerton, an espresso cart in the Norm Dicks building, and the diner formerly known as Solid Rock Café, located in Port Orchard, which was purchased more than a year ago. Catering services are also available and The Coffee Oasis roasts its own coffee under the label of Prodigal Coffee Co. — single origin, organic and Fair Trade certified — and hopes to eventually offer it wholesale (the coffee beans are already offered retail at its stores, at FreshLocal in
Bremerton and through the locally based Wildly Organic delivery service). About two dozen paid employees, many of them coming through the organization’s job training program like Basile, help run the stores and some of the programs. Another 40 volunteers carry out the work of the different ministries and programs like tutoring and mentoring. The businesses pay for 60 percent of the operations, with 20 percent coming from competitive grants and the rest from donations. The organization gets an average of 1,300 to 1,500 new young people coming through the doors every year. Frederick, who wasn’t a coffee drinker and knew even less about business when he started Hope in Christ Ministries, said the organization has been evolving and is currently in transition. They are working on a strategic plan for the next 10 years, including a complete rebranding with a new logo and a consistent name. A capital campaign is in the works to build a permanent shelter on the second floor of the Burwell location. “Our interest is in providing a storefront business and outreach center in each area of the county,” he said. “Our vision is to keep growing; there’s no lack of need. We continue to solidify what we’re doing.” Poulsbo and Belfair have been identified as two potential areas of growth for Coffee Oasis. Frederick said they’ve identified some possibilities in Poulsbo, and a center may be open there as early as this year. Frederick has been growing personally alongside the organization. He said that for many years he struggled with the idea of running a ministry and an enterprise but once he realized, about five years ago, that the ministry was the focus, not the business, things started happening. “It came to the point I had to realize the business wasn’t the heart of our ministry, but a successful business provided the support for our ministries and our staff,” he said. “It all makes sense now, and people are asking how we did it.” He said the success behind the winning combination is the staff. “I have wonderful people, 25 amazing staff whose hearts are in it, it’s not just a job for them,” he said. As the organization continues to grow, Frederick, too, is excited to learn more. He’s exploring the idea of an MBA through the Bainbridge Graduate Institute, as one option. “I’m a pastor and now I’m a businessman,” he said. “It’s one of the biggest desires for me to continue to become better in business… I’ve learned a lot through the school of hard knocks and I have a passion as an entrepreneur and would like to refine the business.”
Nonprofit board involvement: Reward or punishment? You decide. By Bill Hoke One of the great rewards of your business or public service life may be your service on the board of a nonprofit organization. At its best, serving on a nonprofit board can be satisfying and enriching, where the work you do has a measurable outcome, where the board's support of management is positive and productive, where goals are set and met, everyone working as a team, sharing a common vision. When you are engaged at that level, you leave board meetings with a sense of real
satisfaction, of having contributed and made a difference; you leave talking-up the board and the organization, spreading the word, infectious in your enthusiasm and proselytizing at every opportunity. We have worked with dozens of nonprofit boards over the past ten years and served on some as board members. Some we worked on as an 'ex officio' basis, where we were called in when there was a specific limited assignment we could accomplish. Along the way, we have learned some lessons to make board work more personally rewarding and more useful and productive to the nonprofit organization. Here are seven ideas to make your involvement more satisfying and, from the
Kitsap Pageant Program crowns new winners
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productive use of board and staff. Get this out in the open! 6) Kitsap is a shallow pond and many people are often asked to choose between competing fund raising events. If you want your organization to 'win' this nearly weekly competition, then make your event positively sing with efficiency, fun to attend and keep to your deadlines. Nothing raises funds more effectively than success stories and nothing kills an event more quickly than endless introductions (invoke a 'holds the applause' rule), thoughtlessly long speeches (tell your speakers of the time limits). If the clock is striking 10 p.m. and you are still auctioning cakes, you are asking for walk-outs. 7) Be clear on your mission. We hear over and over in our workshops that board members are not clear on what the mission of the organization really is. You cannot 'brand' a nonprofit organization until everyone, board and staff, are singing the same song in harmony. This all adds up to the need for better, more open and forthright communication between board and staff and stakeholders. At its best, nonprofit board involvement can be deeply rewarding. It should be. At its worst, it is dispirited members showing up to dutifully process paperwork and eventually leave because no one engaged them, respects their time, talents and energy. The nonprofit organizations, who expect to survive this changing paradigm, reinvent themselves, need to tighten up their systems, be more aware and respectful of board members' time and maintain the highest levels of communication with their stakeholders. (Editors note: Bill Hoke is a Kitsap-based small business marketing , sales and communication consultant. He offers workshops for nonprofit organizations to help them communicate and brand themselves and can be reached at (360) 271-9448 or hoke@hokeconsulting.com.)
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February 2011 Kitsap Peninsula Business Journal•KPBJ.com 27
The Kitsap Pageant Program had another outstanding year awarding over $68,000 in scholarships to eighteen contestants on Jan. 8. Eighteen girls from Kitsap County were competing for three titles. Each winner would also include their Little Sisters whom are selected local 3rd graders they mentor through the program. The winner for Miss Poulsbo was Natasha Tucker, 21, and her Little Sister for Little Miss Poulsbo, Kylee Brooks, age 8. The Miss Silverdale winner was Brittney Risinski 16, and her Little Sister for Little Miss Silverdale was Sadie Finch, age 9. Hannah Woods, 16 of Bremerton took the honors of Miss Kitsap and her Little Sister Mia Langlois, age 9, takes on the role of Little Miss Kitsap. All winners will represent the county for 2011 by volunteering at community events to raise awareness for the program to award scholarship dollars for young women to continue or begin their education. For more information contact the Pageant Director for Miss Poulsbo, Miss Kitsap, and Miss Silverdale at misspoulsbo@yahoo.com.
management side, how to get more from your board, new or old. 1) Take time to thoroughly vet and then orientate new board members. If you expect them to donate money, tell them how much up front. If they are expected to lead or actively participate in board activities, chair a committee, coordinate an event, hold a fund raiser, let them know before they join the board. Consider asking experts to serve ex officio, so you can have access to their expertise when you really need it. 2) Publish an annual calendar of all meetings and events. With so many people using electronic calendars, many want to be able to see their schedules months in advance. Last minute meeting notices draw poor attendance and set a dangerous precedent. 3) Provide meeting agendas in advance and indicate what action items where you want decisions made. If some members are more comfortable with hard copies of board packets, accommodate them and slowly wean them to electronic packages. 4) Ask if you really need a meeting. Is it better to have an executive committee to meet monthly and then have a 'full' board meeting every other month? Make meetings meaningful and be sure everyone who attends is involved in the discussion. Keep meetings to 75 to 90 minutes (no more) and beware of 'retreats' that are not thoroughly (professionally) planned. One failed full or half-day meeting can be a death knell. Challenge the need for every meeting. 5) We hear over and over from the board: “I don't know what the executive director wants me to do.” And, from the executive directors, "I don't know how to ask the board members to do something. I am afraid to ask, don't want to put any demands on my board.” This elephant-inthe-board-room accounts for myriad problems, misunderstandings and lack of
New Belfair nonprofit fills much-needed niche
28 Kitsap Peninsula Business Journal•KPBJ.com February 2011
By Rodika Tollefson Belfair-based nonprofit North Mason County Resource is under a year old, but the grass-roots organization has already helped hundreds of people. Operated and staffed with volunteers, the organization has been playing the role of a clearinghouse of sorts, connecting North Mason residents with resources available to them for just about any situation. NMCR also acts as an in-take point for people who need services,
providing case management. The nonprofit was founded in a short time early last year after Executive Director Tom Armstrong, one of the founders, was told during a conversation with Sen. Patty Murray’s staff that what Belfair really needed was a central hub. It was difficult, as a lawmaker, to funnel requests from multiple organizations, especially for similar needs, Armstrong was told. With the backing of federal and state representatives, the founding group received nonprofit status in record time (three months) — and by March of last year, it was not only official, it had found a building. By the end of the year, North Mason County Resource has outgrown its location at the Lincoln Center in Belfair, and expanded its operations to the second floor this January. “We’re unique among the services provided in this area,” Armstrong said. “We work together with other nonprofits who have the same vision.” Funded largely by private donations as well as some grants, NMCR had an operating fund of just over $21,000 the first year. The money goes to rent and utilities, with all the equipment and supplies being donated. The nonprofit also received a $25,000 grant from Mason County for 2011, to be used partially for operations and partially to staff a part-time position working on homeless programs. Since its inception, NMCR has been able to attract numerous agencies and organizations under its umbrella or into its building. Washington State Department of Health and Human Services (DSHS), for example, supplied a computer kiosk and training so that any local resident applying
for DSHS services no longer has to travel to Shelton. The organization is also providing space for other agencies to meet with clients at its location, including American Legion veterans’ services, the health department, a domestic violence shelter and a mental health service agency, among others. With the expansion to the second floor, a classroom will be built downstairs for literacy classes. Armstrong said the organization has helped funnel about $500,000 worth of assistance through the office in 2010. That includes vouchers for emergency prescriptions, gas and laundry; help with utilities and emergency rent; home repairs and food. This year, a new focus is on medical coverage for local children regardless of income. “We try to find areas of greatest needs and find resources to fulfill it,” Armstrong said. Many local churches and civic organizations have supported the efforts by sponsoring specific programs such as medication vouchers, while other groups have used the NMCR umbrella to deliver its own programs. As one recent example, a
newly created mobile food brigade, which delivers food to those unable to access the local food bank, was recently accepted by the NMCR board to use its nonprofit status and office space. Nearly 40 volunteers including board members help with operations. The board includes community members representing those people who are being served. Eventually, the organization may outgrow its volunteer staff, which will help Armstrong do less in-take and case management and focus on writing grants and adding programs. “Our goal will always be to make sure a huge percentage goes out of this office in services,” he said. He said one unique aspect about NMCR is that it is helping rebuild the local economy by getting people back on their feet. “Our goal is to get people to become self-reliant and help our businesses and the economy,” he said. “We try to provide all the connections for people… and we want them to pay back to the community.” For more information about NMCR, visit http://nmcountyresource.qwestoffice.net or call (360) 275-3652.
Nonprofit organizations: What's branding got to do with it? By Bill Hoke If you serve on a nonprofit board, work for or direct one, you probably don't need to be reminded that funding is tight, stakeholder loyalty under attack, technology changing everything and now those of us in Washington State must face the demands for assistance from tens of thousands about to lose services formerly provided by the state, Basic Health Plan,
community clinics, disability providers. Add to this the cries that every nonprofit should have active involvement in social marketing, Tweet hourly and now, the new buzz, have an 'affiliate' program. And, of course you need an active 'donate here' button to click on your website home page. Grantors are looking for measurable results — they want to invest, not just donate. What's a nonprofit to do? First, every nonprofit organization needs to recognize that, like every business, reinvention and flexibility, embracing and understanding technology and the willingness to challenge every assumption are now required. Doing things they way they have always been done is an invitation to a slow, or quick, demise. Conservative estimates are that 75 percent or more of visits to a nonprofit organization come from an Internet search. People Google, Bing or use a browser to find your organization and if your website is not optimized and ready for that knock on the door, traffic goes elsewhere and you get no second chances. Technology is now the driver for inquires about services, staff and hours, a location map, success stories, a list of staff and board. Websites are the new front doors, the reception and help desks, source for calendars, classes, links and other resources. We can expect that search engines are going to be busy in the coming months as Branding, page 29
Local grass-roots effort delivers toy cars to third world countries pharmacist and other professionals. “They all get a big kick out of it,” Harrison said. The Harrisons have been financing the production of WallyCars, which included buying thousands of wooden wheels (the only part not made by the group in-house). This past fall, supporters suggested a fundraiser, so WallyCars set up a table at Central Market in Poulsbo. “The reception we got was tremendous,” Harrison said. “(Store manager) Tom Hall said, ‘Let’s do it again…’ Everybody’s feedback has been great.” The WallyCar effort has not been formalized into a nonprofit because the Central Market fundraiser was the first attempt to solicit financial support; Harrison also said since they only need about $2,000-$4,000 to sponsor the toys, there has not been the need so far to create a formal organization. All donations received go toward purchasing materials like the wheels and dowels for axles, as well as replacing blades and such for the shop equipment. Because construction sites have become far and few between in the past few years, Kingston Lumber stepped up to provide the wood for the cars. The lumberyard gives the volunteers all its scrap pieces. “To them it’s trash and to us, it’s gold,” Harrison said. Since the project’s inception, several locally based nonprofits that work in Third World countries have partnered up with WallyCar to distribute the toys. In some instances, distribution could be a bit more challenging than three years ago since airlines now charge for luggage; the partner
BRANDING
In our workshops, we ask board and staff to associate well-known nonprofit organization names with just a few key words (that's all you get). When we flash up the name, 'American Red Cross,' most people will respond 'disaster relief.’ Mission accomplished. This is the result of consistent messaging, from the sides of Red Cross vehicles, to solicitation letters. They know who they are who they serve and most others seem to know, too. Ask yourself the same questions about your nonprofit organization. And ask from the inside out, beginning with staff and board, stakeholders, funders, the media, and others. Are you clear about what you do, who you serve, the publics you must communicate with, the most important relationships you must maintain? Do you have a workable, affordable action plan to plant your brand name — and key words — into the consciousness of those you depend on, and those who depend on you? Branding: the time to begin is now. (Editors note: Bill Hoke is a Kitsap-based small business marketing , sales and communication consultant. He offers workshops for nonprofit organizations to help them communicate and brand themselves. He can be reached at hoke@hokeconsulting.com and (360) 271-9448.)
from page 28 people in need go looking for alternate services. The pressure is just beginning as we try to re-invent the under-funded social, education and medical care systems. Competition for funding dollars, on-line contributions and community support are more important than ever before. Corporate giving is down and the entire philanthropic paradigm is changing, just as demand soars. The sky may not be falling, but the need for nonprofit organizations to be surefooted and nimble has never been greater. One of the primary objectives in our nonprofit workshops is to get board and staff to be absolutely clear about the services they provide, the clients they serve, and the stakeholders they need to support them. This clarity-of-purpose and mission is now even more important because of the coming demands for services. This brings us to the 'B" word — branding. The goal for every nonprofit must be to be absolutely clear in their mission and to build that all-important keyword association with clients, funders, staff, board and stakeholders. It's amazing the number of nonprofit organizations who are not clear on this.
organizations receive the WallyCars for free and then are responsible for delivering them. Among local organizations that have distributed WallyCars are Port Orchardbased Etta Projects and Children of the Nations based in Silverdale. The goal is to make and distribute about 2,000 cars a year, but Harrison said they have the capacity to make as many as 4,000. The group is looking for other organizations interested in taking the WallyCars to kids in poor countries, and they pre-screen the groups to make sure they meet an important prerequisite: That the cars are distributed to the kids with no strings attached. “What I hope to do eventually is have people do WallyCars around the country,” Harrison said. He’s already had some interest from friends in other states. “People our age who are retired could do this and get a lot of satisfaction,” he said. Wally and Margie Harrison said they took this idea on because they really like
children — they even moved into a new Poulsbo neighborhood recently so they can be surrounded by kids. The couple, who are surrogate grandparents, said they wanted to do something for children who have nothing. “It’s just evolved,” Margie said. “…We’re looking for more places to go into, and now we have the volunteers to make the cars.” Anyone interested in the WallyCar project may contact Wally Harrison via email, wallyandmarge@hotmail.com.
February 2011 Kitsap Peninsula Business Journal•KPBJ.com 29
By Rodika Tollefson Wally and Margie Harrison still recall their visit to Jamaica nearly 30 years ago as part of their volunteer involvement with the Peace Corps. The couple, who were in their 50s, stayed with a family with two young boys. One day, Marge found two rubber bands and when she gave one of them to the kids, the youngsters were ecstatic. “They were delighted; it was a toy for them. They played with rocks and sticks,” Wally Harrison said. That incident stayed with them, and after moving to the Pacific Northwest and retiring, the couple wanted to do something for kids in third world countries. About three years ago, Harrison came up with a simple design of a wooden car that could be easily replicated. They obtained permission from construction companies to pick up their leftover framing materials from building sites. And when a church sent a group overseas who volunteered to take cars for kids in their suitcases, the WallyCar project was official born. Since then, Harrison and his helpers — he’s recruited several volunteers to make the cars — have distributed more than 5,000 cars to kids all over the world, in 18 countries including Morocco, Chile, Indonesia and Columbia. Harrison still makes the cars in his wood shop in his Poulsbo garage, but one of his friends, who has professional-grade tools, can accommodate a small group at his own shop — so periodically, the group gets together and makes hundreds of the toys. The volunteers include a banker, a retired
The 2011 trends that will drive rural small businesses By Becky McCray Local, government and economic development are the three key factors shaping rural small business in 2011. Within each of these factors are smaller subtrends. Here’s a closer look at what to expect for rural businesses. Local Movement Local foods, shop local, local business. Local, local, local. This collision of trends into an entire movement is reshaping small town economics. It must be big, because big businesses are trying to get in on it. Here are the subtrends that smart small town businesses can use this year. Local Foods: Farmers are the next food stars. Local foods made up five out of the 20 top food trends in a National Restaurant Association survey of chefs. Clearly, people are thinking more about where their food comes from than any time in recent history. More farmers and producers are using social networking tools to connect directly with customers. More restaurants will be featuring celebrity suppliers and treating farmers like food stars. Opportunities are here for producers, value added processors and even simple things like farm visits. Shop Local: A focus on building better businesses. A “Shop Local” slogan is not enough anymore. In the next evolution, shop local
projects will work to improve local businesses to better meet people’s needs, because more competitive local businesses are a natural draw for customers. One good model: the Main Street Four Point Approach®. Look into the Economic Restructuring point for more on improving business competitiveness. Local Travel: Meaningful tourism is more engaging. Travel is expected to be up, reaching record levels in 2011. Visitors to small towns want to do more than watch an event. They want to be part of it, and they want their spending to make them a part of something larger. This represents a progression of engagement in tourism. Visitors pay a premium when they think their purchase is doing good, whether that is a renewal of the environment, of an area’s history, or of a particular culture. Smart small town tourism businesses will build more engagement with visitors and move towards renewal. Mobile = Local: Connecting is good for business. Small town people are carrying smartphones, playing location based games, and using Facebook even while out of the house. Visitors and travelers are using Google Local to find businesses in even the smallest of towns. Travelers and locals review small town businesses on sites like Yelp and Urban Spoon. All of this is happening now. Smart small town businesses are taking advantage of this, and 2011 should see more
30 Kitsap Peninsula Business Journal•KPBJ.com February 2011
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Government Government is always a big driver of small town trends, partly because more small town people work in government jobs as compared to urban areas. This year there are two major subtrends. Government Budget Crunches: Small towns take a big hit. States were hit hard with reduced revenues in fiscal years 2009, 2010, and 2011. Looking ahead, 40 states are projecting another shortfall in FY 2012. Local businesses are likely to feel a pinch as their customers are affected. When states consider trimming services, outlying areas are likely to be targeted. School consolidation is likely to come up as well. One key federal indicator: post office closures and suspensions are way up. Health Care Reform: Some support for rural access. Provisions of the new law are kicking in, but what will they mean? With court rulings and discussions of repealing provisions, health care is a real wild card right now. A 35 percent tax credit for small employers providing health insurance will be felt soon, as small businesses file 2010 tax returns in early 2011. Increased payments to rural health care providers should also provide some benefit during 2011 as rural areas continue to struggle to maintain health care services. For more information about which provisions start when, review the Implementation Timeline from the Kaiser Family Foundation. Economic Development Each small town’s economy is driven by a specific mix of local factors. No one economic forecast can cover all small towns and their unique economies. There are a few economic factors that cross regional boundaries, though.
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Economic Outlook: Strong Ag prices boost rural prospects. The Rural Mainstreet Index is at its highest level in almost three years, carried up by strong agricultural markets. That is also supporting a positive outlook for more rural jobs. One worry is the recent run-up in farmland prices in many areas. No one wants to see yet another real estate bubble burst, dragging down the rural economy. For now, though, rural entrepreneurs have a better economic climate than many of their urban counterparts. Rural Sourcing: Small towns capture jobs from outsourcing. The wave of global outsourcing may have crested, and small town business can benefit by capturing more of these jobs through ruralsourcing. Rural service firms claim a number of advantages over global firms: shorter supply chains, better data security, intellectual property protection, cultural compatibility, and convenient time zones. Costs are lower than traditional urban firms, reflecting the lower rural cost of living. Those small town companies capable of partnering with large corporate clients stand to gain new business throughout 2011. Ag Exports: Global trade is a rural issue. Far from being disconnected from the wider world, rural areas have a direct link to world trade: agricultural exports. The U.S. trade deficit increased to $46.3 billion in August, while the agricultural industry managed a $1.8 billion trade surplus. Many ag-related small businesses go into that total, and this is an area with big opportunity for small business. Entrepreneurship: A rural boom in sole proprietors. More folks are starting small town businesses. New numbers out of South Dakota show a boom in sole proprietors. Sole proprietor numbers increased faster than jobs in most rural counties. Look for opportunities in supporting these new business owners and in partnering among rural business owners.
Niehaus joins EHH as managing director of Elixsys subsidiary Eagle Harbor Holdings, LLC (EHH) recently welcomed sales management and business development veteran Troy Niehaus as managing director of its Elixsys, LLC subsidiary. “Troy Niehaus is an enormous asset to the EHH team, and has easily hit the ground running with ideas and strategies for our Elixsys subsidiary,” said Sam Hemingway, EHH COO. “He has energized senior management and clearly has a keen eye on the future of the company. We’re excited to see the future of Elixsys led by Troy.” Niehaus has spent the past 11 years helping to bring technologies to market, and is accomplished in exceeding sales and revenue goals and leading high performance teams. He is the former president of Metronor Inc, a high-tech company focused on the sale and distribution of a range of electro-optical portable measuring systems that have become very popular among leading manufacturers worldwide. Troy is an Air Force Academy graduate and has a master’s degree in Management from the University of Colorado. EHH’s Elixsys, LLC subsidiary focuses on developing “green cost-effective” remediation processes for coal fly ash and electronic waste, as two examples. Niehaus is charged with full management, operational, and profit and loss responsibility for the Elixsys subsidiary. Niehaus stated, “EHH has tremendous people and technologies combined with a vision and leadership to make it one of the top companies to work for. I am honored to be part of the team and am dedicated to ensuring its future success.” Dan Preston, EHH CEO stated, “Troy Niehaus allows us to take the guesswork out of Elixsys’ direction. He stepped in with a clear path to market and began executing. I’m happy to have him as an asset.”
Kitsap couple bring a little taste of Island to Poulsbo
better because they use all fresh and natural ingredients, but also because skyr drives the fat content down and protein up, plus he uses less sugar than the traditional kind. At the beginning, the process was very time-consuming, as they used an ice cream bucket. As sales added up, by July they had the money to invest into a professional ice cream machine, which took the process down to about one-tenth of the time. But they still make their own skyr, which is a production in itself, considering it takes a lot of milk to make a descent size batch of skyr. “The skyr ice cream is good and healthy but I can only produce so much,” Skald says. “So that limits us to Kitsap County (for distribution).” With the move to their own facility, however, they gain other new opportunities. Using Evergreen Kitchen in Bremerton previously made scheduling tough. Now, they can make it any time they want or need, plus they can sell the product outside of the farmers market season to the public. The new facility also means they may have to work around the clock when demand grows, which may be challenging considering the couple were due to become parents January. But they were not worried, especially after having worked 16-hour days (sometimes, 20-hour days) at the beginning of the summer as they got off the ground. Plus, Skald points out, in Iceland hard work is part of life. “We were used to ridiculous hours but when you’re working for yourself and still putting in those hours, you’re not feeling as tired,” he says. Living in Iceland had another advantage: They were used to taking risks and being entrepreneurial. With jobs as scarce as locally grown food, they had to do various things to make a living. Skald, who’s been writing comic books (including for the popular Dungeon and Dragons series), has also been a bouncer and a butcher, among other things. Gunnlaugsdottir, a graphic designer and illustrator, has found her background come in handy for their new company’s marketing needs. Their new facility is located off Stottlemeyer Road, next to Crimson Cove Smoked Specialties, which already gets traffic during retail hours on Friday and Saturday. One of Skald’s ideas is to have special events where people can come for free taste-testing. And they welcomed people dropping in any other time the
factory is open. Skald says using the base vanilla ice cream (another family recipe), it only takes four minutes to make whatever flavor customers want. “That’s the beauty of my greatgrandmother’s vanilla recipe, it’s so versatile, you can add any flavor to enhance it,” he says. The couple are open to any custom-flavor orders and special orders for events, and are hoping with time to offer ice-cream cakes. They are sourcing as many ingredients as possible locally and keeping the prices low so their products are affordable. So far, they are pleased with how business is going, though they realize part of it is luck: being in Poulsbo, where Scandinavian things are popular, and making handcrafted ice
cream at a time when local, handcrafted products are in high demand. (Skald notes that 10 years ago, making handcrafted ice cream was not cool at all.) “We’re always there, next to the machine, making sure the ice cream tastes awesome, and that’s something you don’t get from industrial ice cream,” Gunnlaugsdottir says. Asta Gunnlaugsdottir and Thormod Skald ended in Poulsbo by a fluke. They came to Washington because Skald had visited an aunt in the state two decades ago. After immigrating two years ago, they happened to stop for gas while driving through town, and Viking Fest was in swing. They saw the Icelandic flags everywhere, and instantly, felt at home. That lucky trip helped opened a new chapter in their lives, and the two are excited about their business’ future. Skald says the most important thing for him was to make sure they had a quality product. “In Iceland, reputation is everything so that’s really important,” he says. “If we’re not working hard to have a good reputation, it’s very upsetting to me.” The new Viking Ice Cream facility is located at 22273 Stottlemeyer Road in Poulsbo and may be reached at vikingfeast@gmail.com.
February 2011 Kitsap Peninsula Business Journal•KPBJ.com 31
By Rodika Tollefson When Asta Gunnlaugsdottir and Thormod Skald visited local farmers markets last summer, they were surprised to find one thing lacking on hot days: ice cream. The couple, who moved to Washington state from Iceland in 2008, were ice cream connoisseurs, and Skald has made the treat back in his native country for more than 20 years. When they couldn’t find work due to the recession, the pair decided making ice cream to sell at the farmers market was as good an idea as any. “We thought, why not, we had nothing to lose,” Skald says. They smile as they recall their meager beginnings at the Poulsbo Farmers Market this past April. The weather was far from ice cream-friendly, and their booth had a card table and a cardboard sign — it was quite a comical sight. “It was freezing cold, sleeting rain, and nobody knew us. People were laughing at us,” Gunnlaugsdottir says. Nobody would laugh now when they hear the rest of the story. Their product, sold under the name of Viking Feast Ice Cream, proved so popular, not only did they expand to four other markets on the Kitsap Peninsula, they recently opened a production shop and storefront in Poulsbo. Even before the opening, they already had interest from some local grocery and corner stores for wholesales, as well as local restaurants in placing Viking Feast Ice Cream on the menu. Skald says at first they had to explain the product a lot and give it away for free, but once people tasted it, they developed a strong following. They have about 25 flavors conquered, and continue to add more. When someone wanted a “fall theme” for a recent event, for example, Skald figured out how to use granny smith apples and caramel to come up with a winning flavor. In Iceland, ice cream comes in few flavors because most food is imported so it’s very expensive, which left little room for “playing.” “Here berries are everywhere and it’s given us so much more ability to experiment,” he says. “…Here in America, there’s so many good ingredients readily available, it’s opened a lot of doors.” The ice cream has a special ingredient that gives it its unique flavor: skyr (pronounced “skeer”). It’s a sort of a yogurt, very low in fat, created by the Vikings more than 1,000 years ago. It is difficult to find outside of Iceland and is similar to Greek yogurt (though, according to some sources for foodies online, skyr is actually a cheese that has yogurt texture). Skald was making his own skyr in the United States, using a recipe from his greatgrandmother, when a friend tried it and suggested it may taste good frozen. Since the milk here is different from Iceland (because of the cow breeds), he couldn’t use his original formula anyway. Through trial and error, he found the right mix of skyr and ice cream created the right texture, and the best part was that the mix was so versatile, he could add just about any flavor. He says this kind of ice cream is not only
February @ 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.
Members of the Port Orchard Chamber of Commerce took home two awards at the Tacoma Desiree Steffens Wedding Expo in January 2011! What a wonderful Port Orchard Chamber 2010-2011 President way to show other communities and brides participating in the Expo, the services that are offered and available in Port Orchard and South Kitsap. Five Port Orchard Chamber members participated in the Expo: Capriccio Catering/Make It Special Wedding & Event Planning, Carter’s Chocolates, Le Garmache’ Catering, McCormick Woods Golf Course & Clubhouse Grill and Trophy Lake Golf & Casting Club. Trophy Lake Golf & Casting Club was voted “Best Booth” and Capriccio Catering was voted “Best New Service Booth” at the show. Voting for the awards was done by the over 200 merchants at the show. It was exciting that our small community won awards when in competition with large companies throughout Western Washington. It is an indication of the many fine options, services and venues which brides have in Kitsap. The Kitsap Peninsula offers breathtaking backdrops, gorgeous venues of all shapes and sizes (over 75) outstanding catering, floral, music and photography services, fine
lodging, dining and transportation choices too. Check out the Kitsap Peninsula Visitor and Convention Bureau website at www.visitkitsap.com/weddings for everything you need to say “I do” in style on the Peninsula. Business Expo’s and Showcases are an excellent way to feature the products and services your business has to offer. The Port Orchard Chamber and seven other Chambers coordinate the WestSound Business Expo each year at the Kitsap Pavilion. The event takes place on Thursday, Feb. 17th from 1-7 p.m. and this year includes a seminar by Patrick Snow on Creating Your Own Destiny. In May, the Port Orchard Chamber will hold its annual Business Showcase on Thursday, May 19th from 4-7 p.m. This event offers display space for 40 vendors, attendance by approximately 500 individuals and includes the annual Best of SK Awards. For information on either of these events go to www.portorchard.com. Several helpful articles are available on line for those looking for tips for successfully displaying at a trade shows, as well as the benefits of attending a trade show and how to get the most out of your attendance. Key is finding out: the layout of the show, whether outlets are available, wall space for company signs, the size of the display area and whether table and table cloth are supplied. Don’t forget giveaways, contests and door prizes that will draw attendees into your space. Let your chamber work for you and make every day a special day.
February General Membership Meeting
Chamber Morning Seminar
Thursday, February 10th, 2011, 11:30 a.m. Location: McCormick Woods Banquet Room Program: Randy Spitzer, President Responsibility Cultures “Creating a Responsibility Culture” Because there is so much unhealthy behavior in organization, many business leaders conclude that the people around them are lazy and morally suspect. So they add more rules and beef up their monitoring systems. It never occurs to them that the rules and monitoring systems are a major cause of bad behavior and poor business results. Learn the three key strategies for building a Responsibility Culture: 1) establish a healthy social contract, 2) encourage emergent leaders, and 3) empower employees to deliver customer value. Randy Spitzer of Responsibility Cultures, is a Senior Fellow at LCI. Prior 1996, Mr. Spitzer was a curriculum development consultant and trainer with Anheuser-Busch, Inc. He wrote and implemented leadership and organizational development courses for Pepsi-Cola Bottlers in the Pacific Northwest and TCI Cablevision of Washington. He also earned the Certified Financial Planner designation and served as chairman of Century Financial Services of Western Washington. Meeting 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 February 8th. Membership Luncheons are open to members and nonmembers. Chamber members pay $20 if prepaid and $22 at the door, non Chamber members pay $22 and must pay in advance.
Wed. Feb. 16th, 8 a.m. Call office for location. “Customer Service: Five Simple Truths” Stephanie Horton of Top Dog Etiquette Business owners know how much it costs to market their products and services in an attempt to bring in new customers. They also know that turning that inquiry into a sale is a totally different matter. Are you confident in your staff’s ability to welcome that customer, make them feel at home, and meet their needs? Will your team stand up when someone comes in? Look them in the eye? Thank them for their business and truly mean it? And what about that ever-popular “extra mile? Join us for this fun and informative session with local etiquette guru Stephanie Horton of Top Dog Etiquette. Stephanie will share five simple truths about customer service. It can be as simple as having a real person answer the phone. How often does that happen?? www.topdogetiquette.com
Bay Street Bistro • John Strasinger 834 Bay Street, Port Orchard, WA 98366 360-602-0310 • www.baystreetbistro.com Café Soleil*Tanning*Hair*Espresso • Ronda Looney 423 SW Sedgwick Road #101, Port Orchard, WA 98367 360-895-0989 • www.cafesoleitanning.com Olalla Valley Vineyard & Winery • Konnie Serka 13176 Olalla Valley Road SE, Olalla, WA 98359 253-851-4949 • www.olallavalleyvineyard.com Kitsap Conference Ctr at Brem. Harborside • Tamorro Farrell 100 Washington Avenue, Bremerton, WA 98337 360-377-3785 • www.kitsapconferencecenter.com C & S Auto Service • Cory Ceder 101 Bethel Avenue, Port Orchard, WA 98366 360-895-0989 • www.candsautoservice.com Sheila Cline 8166 SE Haida Drive, Port Orchard, WA 98366 360-769-6547 Edward Jones Investments • Denette George 4275 SE Mile Hill Drive Suite A, Port Orchard, WA 98366 360-871-9707 • www.edwardjones.com SK8 Town Event Center • Darlene Piper 1501 SE Piperberry Way, Port Orchard, WA 98366 360-871-4765 • www.sk8townpo.com Simon’s Restaurant • Tina Nguyen 1541 Piperberry Way Suite 151, Port Orchard, WA 98366 360-895-2032 • www.simonschinesecuisine.com Integrity Information Services • Frederick Granado 5149 SE Granada Place, Port Orchard, WA 98366 360-440-3257 • www.integrity-is.com Servpro of Kitsap County • Alyssa Rodriguez 5800 West Werner Road #B, Bremerton, WA 98312 360-373-1290 • www.servproofkitsapcounty.com Parties By The Perfect Place • Nicole Broady P.O. Box 4742, Bremerton, WA 98312 360-473-8525 • www.ifoundtheperfectplace.com Cookie Lee Jewelry • Sarah Alvarez 2404 SW Siskin Circle, Port Orchard, WA 98367 360-551-1242 • www.cookielee.biz/sarahalvarez 7-Eleven, Inc. • Brenda Morgan 567 Bay Street, Port Orchard, WA 98366 360-874-7595 7-Eleven, Inc 1800 Mile Hill Drive, Port Orchard, WA 98366 360-895-7837
2011 Legislative Tele-Conference Meetings Wed. Feb. 9th, Representatives Haigh and Finn; Wed. Feb. 23rd, Representative Seaquist Doors open 7:15 a.m. Meeting at 7:30 a.m. Port Orchard City Hall Council Chambers. 216 Prospect St. 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.
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32 Kitsap Peninsula Business Journal•KPBJ.com February 2011
President’s Message
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Environmentally friendly wastewater and water reclamation project in Mason County celebrates one year of construction After 52 weeks of active construction, the Belfair Wastewater and Water Reclamation Facilities Project is 70 percent complete, with full start-up expected by year-end
L-R Congressman Norm Dicks, Governor Christine Gregoire, unitified, Rep. Kathy Haigh As the population increases; the limited supply of water lessens. More than 70 percent of the Earth’s surface is covered by water, while only 2.5 percent is available as fresh and potable with the rest being saltwater found in our Sound and oceans. Seventy four percent of freshwater is taken by glaciers and polar ice caps with 25 percent as groundwater, clouds and humidity in the soil, leaving just one percent accessible in our lakes, rivers and streams. The Belfair Water Reclamation facility will treat water to “Class A” reclaimed water standards, which is used around the world for non-potable uses. In Washington State, reclaimed water can be used for irrigation (e.g., agriculture, golf courses, sports fields, etc.), Industrial processes (e.g., cleaning or cooling), Fire suppression (for fire flow and sprinklers), and in the natural environment for enhancing wetlands or stream flow augmentation.
By reducing demand from established water supplies — especially during the dry summer months as over 50 percent is used irrigating lawns and landscapes outdoors — this will help the Hood Canal environment and salmon by reusing water that would otherwise be pumped to outfalls and lost to the canal’s salty waters. In addition to protecting the environment, with prices of municipal water rising and drought restrictions becoming more prevalent during the summer, reclaiming wastewater can save taxpayers money. Project costs will come to over $40 million, including more than $30 million in combined grants or appropriations from Washington State Departments of Ecology and Commerce, U.S. Environmental Protection Agency and the American Recovery and Reinvestment Act. While crews overcame weather challenges,
Emerald BioStructures expands collaboration with UCB Bainbridge Island-based Emerald BioStructures, a leading provider of fragment-based drug discovery services, announced in January that it has successfully achieved the second milestone in its collaboration with UCB on the structure-based discovery of small molecule modulators of undisclosed targets. UCB, based in Brussels, Belgium, is a global biopharmaceutical company focused on the discovery and development of innovative medicines and solutions for severe diseases of the immune system or of the central nervous system. Working in close collaboration, the team of researchers at Emerald and UCB have solved high-resolution X-ray crystallographic structures of multiple targets (proteins in the body that are key to health issues). They have discovered
molecules affecting proteins that influence an undisclosed health issue, which will enable the two companies to continue work toward discovering a new drug. “Emerald and UCB initiated their collaboration partnership in January of 2009, and over the last 24 months, have made significant progress,” said Neil Weir, senior vice president of research at UCB. “We are very impressed with Emerald’s ability to consistently deliver structural insights in a fast-paced and exciting project that requires continuous innovation.” “In this collaborative effort, we’ve identified multiple modulators of protein structure and function,” said Alex Burgin, COO of Emerald BioStructures. “We look forward to supporting UCB in their structure-guided design and selection of
clinical candidates over the next 24 months.” In addition, Emerald and UCB have expanded their collaboration in structurebased drug discovery. “The expansion of our UCB collaboration is an important demonstration of the confidence that UCB has in the Emerald team, and is a clear validation of our fragment-based X-ray structure technology, especially when applied to challenging targets,” said Lance Stewart, CEO of Emerald BioStructures. The financial terms of the research fee, milestone and royalty-bearing relationship were not disclosed; however, the project supports multiple full-time researcher equivalents at Emerald. For more information about Emerald BioStructures, visit www.emeraldbiostructures.com.
unexpected contaminated soils and lengthy night work to keep the project on schedule, at this one-year landmark, the project has: • Laid more than 26,000 feet of conveyance lines • Poured 2,000 tons of concrete at the water reclamation facility • Installed more than 225 tons of rebar • Employed three construction crews of 10 for more than 60,000 hours since the project started • Supported approximately 35 Full Time Employees monthly through projectrelated activities, including construction, engineering and community outreach • Removed 2,400 tons of contaminated soil • Opened and restored 16,000 feet of roadway Side sewer connections for property owners will be the next big phase of the project and coordination continues to ensure that they are aware of the connection process and requirements. Side sewer stubs have been installed from the main conveyance line, but property owners will be responsible for the costs to construct their side sewers. The county continues to pursue additional grants and loans through the U.S. Departments of Agriculture and Housing & Urban Development Community Development Block Grant program (managed by the State Department of Commerce) to support property owner’s costs of connecting to the system. Interested parties can join the mailing list by emailing info@masoncountywastewater.com or by visiting the project website at www.masoncountywastewater.com. For other inquiries and information, please contact the Belfair Wastewater and Water Reclamation Facilities Hotline at 360-801-2482.
Detroit Auto Show Greener then ever Four or five years ago, when the green movement appeared to be the Next Big Thing, automakers had to decide whether or not to go green. It takes anywhere from two to five years for a new model to make it from concept to production, so we are just now seeing the real results of those decisions. The onslaught of hybrid, electric and other alternative fuel vehicles seen at the 2011 North American International Auto Show demonstrates that car makers believe Gen Y and Net Gen are being raised to be environmentally conscious as part of their DNA and will default to buying green vehicles. Highlights of this commitment include the new small car line from Ford (Fiesta, Focus and C-Max), two new models of the Toyota Prius, the best of show-winning Chevrolet Volt hybrid electric, the all electric Nissan Leaf, and unbelievable electric/hybrid race cars for the street from Mercedes Benz.
February 2011 Kitsap Peninsula Business Journal•KPBJ.com 33
By Kathleen Byrne-Barrantes These facilities are touted to be a safe, efficient and environmentally friendly alternative that protects Hood Canal water quality and quantities, while it meets Class A standards for future water reuse. The treatment facility will employ a new, proven technology for treating and reclaiming (or recycling/reusing) wastewater called a membrane bioreactor (MBR) system using biological processes and microfilters. MBR technology will remove nitrogen content in sewage that currently exacerbates the canal’s dissolved oxygen problems and is also a sustainable approach to water management conservation as it achieves very high quality water… which can be reused. Wastewater from homes and businesses is conveyed to the main sewer line, which transports sewage to a force main, which is used to move wastewater up the hill to the wastewater reclamation facility for treatment. Water supply is unique to every location. Residents of the Kitsap Peninsula rely upon rainfall to surface water reservoirs, and from underground aquifers known as groundwater. The Puget Sound region experiences natural summer droughts where only 20 percent of the annual rainfall occurs from May to September. A seemingly endless natural compound in the world, water supplies are running low. Humans already use approximately 54 percent of all accessible surface runoff and this may increase to 70 percent by 2025 (Postel, Daily & Ehrlich; Human Appropriation of Renewable Fresh Water; Science, 1996).
Redesigned Dodge minivan gets new V6, and “sporty” R/T trim By Lary Coppola Chrysler is acknowledged as the creator of the modern minivan, and the company has re-staked its claim as leader of that market segment with major upgrades to the 2011 Dodge Grand Caravan and Chrysler Town & Country family haulers. The overlap between the Chrysler and Dodge minivans is gone as well. Clearly defined marketing strategy aims Dodge at the under-30, under $30,000 crowd, while steering bigger spenders toward the Chrysler nameplate, which starts at about $31,000 and goes up. Behind the new Ram-like grille, sits a smooth, gutsy 3.6-liter Pentastar V-6, which is now standard across both the Dodge and Chrysler lines, and replaces the previous three V-6 engine choices — none as powerful as the Pentastar. And the upgrades are targeted where buyers will notice it most — on upgraded materials in massively improved interiors. It seems other major minivans competitors — the Honda Odyssey, Toyota Sienna and totally new Nissan Quest, have all suddenly received complete redesigns as well, so the Grand Caravan update doesn’t come a moment too soon. Model Lineup: The 2011 Dodge Gra nd Caravan comes in three trim levels — the base Express, mid-level Mainstreet, and topline Crew.
Pricing starts at $25,830 for the Express, which includes keyless entry, Stow ’n Go second-row captain’s chairs, and a multifunction steering wheel. The Mainstreet adds body-color exterior trim and power rear windows. The upscale Crew starts at $28,695 and comes with three-zone automatic climate control, power sliding doors, a power driver’s seat, adjustable pedals, an infotainment system with a 30-gig hard drive, and a lot more. A “sporty” R/T version is promised for later this year, with Dodge billing it as “the ultimate Man Van.” It will be equipped much like the Crew but with a number of visual tweaks such as a body-color grille, polished aluminum 17-inch wheels; a nine-speaker,
2011 DODGE GRAND CARAVAN DOES MORE. COSTS LESS.
34 Kitsap Peninsula Business Journal•KPBJ.com February 2011
MORE FAMILY FRIENDLY FEATURES THAN HONDA OR TOYOTA. IT HAS EVERYTHING SO YOU CAN DO ANYTHING.
506-watt sound system; and what Dodge calls a performance suspension — all for $31,430. Dodge boasts it will deliver a “sportier driving experience,” and it’s supposedly aimed at male and female drivers who drove sports cars before they had kids. We’ll see. Our test vehicle was a pretty much fully loaded Dodge Grand Caravan Crew, which stickered at $33,575, so we’ll primarily restrict commentary to that vehicle. Walkaround: Not much to say here. It’s a box — just like every other minivan on the planet. There’s not a lot of ways to execute exciting, adventurous, styling, and rounding the edges and adding big vertical taillights like the 80’s-era Oldsmobile vans really didn’t cut it, so visual tweaks are about all that’s possible. For 2011, the Grand Caravan received a new crosshair front grille and a more sculpted front fascia. In the rear is a redesigned bumper and a liftgate sporting sharper creases and new lettering. Aiding fuel economy is a half-inch reduction in the van’s ride height, lowerrolling-resistance tires, and a drag-reducing roof spoiler. Interior: The Grand Caravan’s thoroughly refreshed interior features a new soft-touch dash and a sporty, tunneled gauge cluster. This is a major improvement over the cheap hard plastic that swathed the interior of the previous model. The cabin has been upgraded with a larger center console, a two-dial instrumentation cluster and smooth integration of the climatecontrol buttons and vents into the dash. Everything is illuminated in Chrysler’s signature green. The Stow ‘n Go seats are larger, softer and more comfortable then before, with new one-touch operation.
Serving Kitsap County for 30 years
The large side doors are conveniently electrically operated both with a gentle touch, or from the key fob, as is the liftgate. New options include a heated steering wheel, and driver’s knee airbag, along with the Safety Sphere package that includes a backup camera, parking sensors, and a blind-spot warning system with rainsensing wipers and automatic headlights. Under The Hood: Like the Chrysler Town & Country — and most other Chrysler products — the Dodge Grand Caravan features the aforementioned new 3.6-liter Pentastar V6 powerplant. It’s tuned to deliver 283 ponies with 260 lb-ft of torque. This is more power than previously offered by the 3.3, 3.8, and 4.0-liter sixes it replaces. The only transmission choice is a six-speed automatic with a “Fuel Economizer” button that adjusts shift timing for reduced fuel consumption. The Pentastar is rated at 17/City and 25/Highway — pretty respectable for a minivan. Behind The Wheel: Let’s face it, driving a minivan isn’t usually an adrenaline-pumping experience — unless you take a twisty mountain-road corner too fast, and my expectations weren’t that high, so I was pleasantly surprised. The Pentastar stays pretty busy lugging the 4,500-pound Grand Caravan around — especially when passing, as the transmission works through its six gears. That said, the Grand Caravan feels relatively quick for a minivan, and the throaty growl of the V-6 was a major surprise — as was the pleasant amount of road feel and impressive responsiveness of the chassis. The extensive upgrades to the Grand Caravan’s suspension, which include everything from new bushings and dampers to revised spring rates and retuned steering gear, has vastly improved the ride comfort, steering feel, and handling. Whines: The level of road noise inside is a bit high, but then consider that you’re moving a steel box through the atmosphere. Bottom Line: The 2011 Dodge Grand Caravan is a much-improved product in every single category over the previous version, and will compete strongly against offerings from Ford and GM as well as the upgraded, and higher priced minivans from Honda, Toyota, and Nissan. Dodge has restaked its claim to the minivan market with a great offering that will be a hard value to beat.
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2011 Cadillac CTS Coupe offers performance, luxury, and razor-sharp style
those big tires. At 62.3 degrees, the windshield rake angle is also much steeper than the sedan’s, with the rear window nearly flat when viewed from the side. The rear end features a chrome, centered dual-exhaust outlet under the bumper that complements all of the other sharp angles on the car. The doors are wide, to accommodate ingress/egress to the rear seat, and there’s no door handles outside or inside. The Coupe uses the same electric pushbutton openers as the Corvette. Interior: The interior of the CTS Coupe is basically the same as the CTS sedan and Sport Wagon, featuring a rich mix of wood, chrome, and leather, coupled with electronics and entertainment systems equal to any other vehicle in this relatively small class. That includes navigation, AM/FM/XM/CD/MP3 audio, OnStar, Stablitrak chassis control, and a comprehensive information display. Instrumentation is a combination of analog and digital readouts in a three-pod instrument cluster, bathed in a pleasant blue light that’s easy on the eyes. The driver’s seat, center stack and center console meld into a well-organized command center, topped by a retractable navigation screen. The decorative wood adorning the door panels, steering wheel, instrument panel and console lend an air of richness and luxury without overdoing it. The front bucket seats are big and cushy without being sloppy, offering thick, supportive and retentive bolsters for comfort on long trips. And there actually is room for four adults inside. Everything is easy to see, understand, and operate, with great latitude for adjustment in the seats and steering wheel, creating a very comfortable driving situation. The CTS also earns high marks for fit, finish, materials, and especially its interior design. Under The Hood: The CTS Coupe’s powertrain is GM’s workhorse, dual overhead cam, 3.6-liter V6. Featuring four valves per cylinder, variable valve timing, and direct fuel injection, it delivers an impressive 1.4 horses per cubic inch at engine speeds approaching 7000 rpm. It puts 304 ponies to the pavement with 273 foot-pounds of torque, using only 217 cubic
inches — and does it on regular fuel. The V6 supplies 27+ mpg on the highway, and sounds powerfully muscular doing it — something most other V6’s in this class don’t. By comparison, the old 500 cubic-inch Caddy V8 offered 400 horses, or 0.8 horsepower per cubic inch, with unconscionably bad gas mileage on premium fuel. The CTS-V Coupe boasts a 556-horse, 6.2-liter supercharged V8, upgraded suspension, huge Brembo brakes that stop larger high-performance tires mounted on alloy wheels, plus GM’s Magnetic Ride Control shock absorbers.
The CTS Coupe offers a six-speed automatic transmission, but is available with an Aisin six-speed manual. Behind The Wheel: In my week of testdriving, the CTS Coupe offered no surprises, performing pretty much like the CTS V6 sedan. However, it’s slightly quicker off the line, with a nice V8 sound under acceleration. The automatic transmission offered relatively quick up and downshifts, and I appreciated the steeringwheel paddles for manual shifts. The CTS Coupe has a reassuringly buttoned-down feel about sticking to the pavement under a number of different terrains. The steering felt commanding and well-connected with my particular driving style, while the brakes worked powerfully and progressively whenever needed — even in quick-stop situations. Whines: The brushed metal surrounding the navigation screen reflects too much light in certain situations. Bottom Line: I loved this car. And while coupes are not for everyone, several people commented how the CTS seemed to suit my personality — whatever that means. However, it does fit both my taste and personal sense of style like a glove — and much more so than any of its competitors except perhaps for the Infiniti G37. If a coupe fits your lifestyle, the CTS Coupe’s performance, luxury, fit, finish, and pure, edgy style of this car — coupled with 27+ miles per gallon, should put the CTS at the top of your shopping list.
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February 2011 Kitsap Peninsula Business Journal•KPBJ.com 35
By Lary Coppola When I first saw the Cadillac CTS Coupe concept car at the 2008 Detroit Auto Show, I thought it was absolutely breathtaking, and hoped financially troubled GM would actually build it. The brainchild of former GM product guru Bob Lutz had such a strong response everywhere it appeared, in an undeniably a bold move for GM — just as the original CTS was — it decided to build the CTS Coupe to go headto-head with the new crop of luxury coupes from German and Japanese automakers. Those include the Mercedes-Benz E-Class coupe, Audi A5, Lexus IS 350 C, BMW 335i coupe, and Infiniti G37 coupe. The radically edgy coupe is Cadillac’s first since the Eldorado, which ceased production in 2002. The CTS debuted in 2003 as a sharp-edged four-door sedan built on a new rear-wheel-drive platform — a departure for GM as radical the razor-edged design was in the heyday of jelly beanshaped vehicles. Cadillac had been primarily front-wheel-drive for many years, utilizing a basic design pioneered by the Oldsmobile Toronado in the early 1970s. Cadillac later added the highperformance CTS-V, using a variant of the Chevy Corvette V8, and a manual transmission, and then added the slick CTS sport wagon. The coupe caps the lineup. Model Lineup: The Cadillac CTS Coupe ($38,165) comes with leather seating surfaces, dual-zone climate control, OnStar with navigation, directions and connections, 18-inch alloy wheels, remote starting, keyless operation, AM/FM/XM/CD/MP3 eight-speaker Bose audio, power seats, mirrors and locks. The Performance Connection ($42,605) adds HID xenon headlamps, adaptive forward lighting, 10-way power leather seats, Bose 5.1 Surround Sound, USB integration, and a 40GB hard drive. The Premium Collection ($47,010 — $48,910 with AWD) adds interior ambient lighting, rearview camera, heated/vented front seats, heated steering wheel, wood trim, navigation, sunroof. Options include P245/45ZR19 front and P275/40ZR19 rear Continental summer tire performance package with 19inch polished alloy wheels, a limited-slip differential, and manual transmission, power sunroof, and navigation. The CTS-V Coupe ($62,165) features a 6.2-liter supercharged V8, paddle shift controls, Brembo brakes, Magnetic Ride Control, and 19-inch wheels with performance tires. Safety features include front and side airbags, side air curtain, ABS, traction control, StabiliTrak electronic stability control. All Wheel-Drive (AWD) is available on all models. Walkaround: The sheetmetal and dimensions of the production coupe are nearly identical to the original concept vehicle, and the result is one angular and aggressive-looking monster. The coupe’s wheelbase is identical to the sedan, but the roofline is two inches lower, the body two inches shorter, and the rear track two inches wider to accommodate
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 February 2011
Email to pressreleases@wetapple.com The Kitsap Peninsula Business Journal is a special interest publication dedicated exclusively to providing news, information and opinions to the business communities of the Kitsap and Key Peninsulas, and North Mason County. It is published monthly by Wet Apple Media. Copyright, 2011, with all rights reserved. Postage is paid at Tacoma, WA. The Kitsap Peninsula Business Journal is read by more than 26,000 business, professional, political and military leaders in Kitsap, Pierce, and Mason counties. Additional copies are available for $1.50 each. Annual subscriptions are available for $25. 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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SAFE BOATS
STATE WORKER PENSIONS
I-1053
Can someone please tell me why a private company (Safe Boats) is able to legally extort money from the taxpayers of Kitsap County to repair damage done by Safe Boats to the Water Street boat ramp in Port Orchard. I realize Safe Boats is an important employer here in South Kitsap and is threatening to move its expanding operation elsewhere if the ramp is not repaired from the damage reportedly caused by them. Do we have it in writing that they won’t still move even if the ramp is fixed? I understand Safe Boats recently changed owners, but it seems — given their ultimatum regarding the ramp repairs — the ownership change is for the worst. Safe Boats is the beneficiary of huge amounts of taxpayer money already in the form of government contracts for its boats. Is Safe Boats that greedy that the owners can’t buck up to fix the ramp on their own? The profit from just one of Safe Boats’ huge 39-foot boats launched there would probably cover it. Is this the kind of business leadership we want here? Get as much money as you can and screw the taxpayers. Please tell me why this type of extortion is a good thing for our community? It’s time for the new owners of Safe Boats to do the moral and ethical thing and fix the ramp themselves and stay in the area where they achieved their initial success. It just makes me sick to see once again the destructive behavior some business owners will engage in toward pursuit of even greater profits than they are already have. When is this going to be unacceptable?
Governor Gregoire says the post retirement pension benefits for state workers are contractual. This is bogus. The Social Security System was deemed contractual also, and look how many times the Federal Government has changed it because it is/was not sustainable as promised. The same holds true with state union pensions. They should no longer be able to collect their pensions after just 30 years of employment (can retire as early as age 48 with full pension if began work at 18). Meanwhile, Social Security is at age 62 for reduced and 67 for full benefits. There is no reason why the state can not claim unsustainability and cash out the pension funds and transfer them into employee self-directed defined contribution models (like 401-K’s). There is no reason why the state should fund health care benefits for retired employees. The employee should fund their own health care at 100 percent both before and after retirement. State employees should be mandatorily paying into the social security system and voluntarily paying into a defined contribution account for themselves — just like the rest of us that pay their wages. Our Legislature is also able to act but they kick the can to the Governor. Governor Gregoire needs to wake up and make this state fiscally sustainable, without raising taxes, and not keep kicking this time bomb down the road for others to be faced with. The time to act is now, not later. But to act takes real leadership. I’m not sure our Governor is up to the task. And if King, Pierce, Snohomish and Thurston County residents insist on voting in these spineless wonders to office, then these four counties should have to pay 100 percent of any new taxes that unions demand for solvency.
Democrats have cut the heart out of the State’s voters by illegally removing I-1053’s fee increase requirements less than three months after voters overwhelmingly approved them. That action makes you each along with the Governor capable of, minimally, extremely “extralegal” decisions and processes that fly in the face of your oath of office. This is unsavory politics in the extreme and you guys are the gang of ‘D’s that need to understand where cuts need to be made before you decide that voters don’t count. The first cut to be made is, quite obviously, in the State employee personnel cost at all levels and, most specifically, the management levels. Get on it now and get it under control. Even the Feds have admitted to that need in their own budgeting. You must overcome your political and personal conflicts of interest in the higher interest of the State you swore to serve. I-1053 was overwhelmingly approved by the citizens and it is the law. Please do not violate the law that make citizen initiatives possible and is one of the citizens’ only methods of making their feelings effectively known to their government. I am asking you in earnest to strongly oppose and vote against the Seaquist Amendment, HB 1175, SB 5176, and any other such legislative efforts that come before you. Please remember that you were elected to represent the people and not to rule over them. I’m ashamed to say that I’ve been a lifelong Democrat up to now. Only you have the opportunity to restore my faith in the party that used to be of the people and stood for fairness to all citizens; not just the citizens who favored you with donations to your campaigns. I feel very strongly about this as a legal matter between the State’s citizens and the illegal action of it’s elected legislative body. This email has been sent to each State Senator, State Representative and to the State’s Attorney General.
Bruce Giese Port Orchard
Pauline Cornelius Olalla
Geoff Griswold Bainbridge Island
California is bleeding manufacturing jobs; are we next? By Don C. Brunell, President Association of Washington Business State lawmakers convening in Olympia are looking under every pebble for new money. They must write a budget with as much as 20 percent less tax revenue. Often when cash is short, some want to repeal the so-called “tax loopholes.” They presume that businesses will simply cough up the extra cash. There are two problems with that line of thinking: First, the extra tax burden will cause some businesses to stop hiring or close altogether. Second, eliminating tax incentives tells prospective new employers, “Go away, we don’t want you here.”
Look at California, for example. Its combined state and local sales tax is 10.25 cents on the dollar — the highest in the nation. Yet state lawmakers have consistently rejected proposals to reduce the sales tax for manufacturers. That is one reason the Golden State has lost 633,000 manufacturing jobs since 2001. According to a Business First of Buffalo study released at the end of December, the Los Angeles area alone lost more than 300,000 jobs averaging $64,000 a year. Washington has long understood the value tax incentives bring to the state. In 1972, following massive layoffs at Boeing, state
AFL-CIO’s faulty strategy doomed vote on Employee Free Choice Act
Washington. In 1995, Democrat Gov. Mike Lowry and a bipartisan group of legislators restored sales tax exemption on manufacturing machinery and equipment with spectacular results. For example, an Association of Washington Business survey of 150 small manufacturers showed they invested more than $250 million in the first year alone. Over the first decade, it added $81.5 billion to the state coffers, generated more than $16.5 billion in income and created nearly 285,000 jobs. Conversely, a 2007 California Manufacturers and Technology Association study found that California lost more than $5 billion in state tax revenue by not having a sales tax exemption for manufacturers. Finally, a three-year study by Washington’s Joint Legislative Audit Review Committee found that most business tax incentives are functioning exactly as they were intended, either stimulating business or helping level the field for Washington firms that compete nationwide. The committee warned that ending the tax exemptions would simply cause businesses to move out of state. Tax incentives work. So when someone starts bellyaching about lost revenues and tax “loopholes,” tell them to look at what is happening in California.
February 2011 Kitsap Peninsula Business Journal•KPBJ.com 37
By Harry Kelber In its expensive, high priority campaign to get Congress to approve the Employee Free Choice Act (EFCA), the AFL-CIO made important strategic blunders that virtually assured that EFCA would end up as still-born legislation. Its initial mistake was to inform members of Congress that unless it received government assistance by passing EFCA, it could not organize millions of workers who wanted to join unions, but were afraid that their boss would take revenge and probably fire them. To make their case, union leaders displayed workers who had been fired for trying to join a union. They publicized the many ways that employers could intimidate their workers, from the minute they were hired and throughout their day at the wor kplace. The net effect of the campaign was to display unions as weak, and no match for powerful corporate employers without government assistance. Tons of leaflets were distributed and countless rallies were held to convey this twin image of corporate power and labor feebleness. (One wonders what the AFL-CIO’s self-abasement had on unorganized workers.) The net effect of the campaign was to brand the AFL-CIO as a “special interest,” seeking special favors from Congress. Unions could have won wide public support by making the moral case that to deny workers the right to join a union was discriminatory and undemocratic. The manner in which the EFCA campaign was conducted had its serious flaws. The unions relied almost entirely on a blizzard of e-mails and a steady stream of phone calls to persuade Congress to enact EFCA. There was relatively little personal contact between union members and legislators or any overt action that might have had a positive effect. The campaign was run by AFL-CIO union members, with hardly any evidence that unorganized workers were involved. Where were the 50 million workers who said they would like to join a union? Why weren’t they lobbying Congress? The Unions Miscal culated on a Political Payoff The AFL-CIO and Change-to-Win claimed that they had been a major contributor to President Obama’s election as President by gaining majorities in six industrial states that he needed to win. They thought that, in gratitude, the President would see to it that EFCA was passed in his first hundred days in office. What the labor leaders failed to understand was that Obama had no intention of risking a bitter fight with the corporate community at the start of his presidency. While he announced that he favored EFCA, he was hoping that the issue could be settled by a compromise between the unions and employers represented by the U.S. Chamber of Commerce. Obama had decided that he wanted a health-care law to be his first and most important legislation, and he persuaded labor leaders to support his comprehensive overhaul of the nation’s health-care system, with the understanding that EFCA would be the next item on his legislative agenda. In fact, the House passed the EFCA bill by a substantial majority, but it failed to survive a threatened filibuster by Republicans in the Senate. While EFCA seemed a life-or-death issue with the unions, the public had other problems in mind: the economic crisis, high unemployment, huge federal and state budget deficits and the wars in Iraq and Afghanistan. Congress put EFCA on the back burner. The unions received a shattering blow when “card-check” — the most essential feature of EFCA — was removed from the bill without a massive protest from the unions. Under card-check, a union could be certified by the Labor Board to bargain with an employer if a majority of workers in a bargaining unit voted for it. EFCA also required employers and unions to accept binding arbitration if no agreement was reached within 120 days. When the Republicans gained control of the House and seven seats in the Senate, that, realistically, marked the end of EFCA, after a three-year campaign that cost millions of dollars and an incredible amount of resources and staff time. It is manifestly unfair to deny workers the right to join unions without intimidation, a right that is enjoyed by bankers, politicians, corporate executives and every segment of society, with the possible exception of jailed criminals. Isn’t it time for the 112th Congress to rectify this gross injustice?
lawmakers created the Economic Assistance Authority (EAA) to attract industrial investments. It worked. The EAA incentives were pivotal in Crown Zellerbach’s decision to modernize its mammoth Camas pulp and paper mill where 3,000 people worked, instead of expanding a newer mill in Oregon. The EAA included a sales tax exemption on new pollution control equipment — roughly half of the modernization cost — a sales tax deferral on the entire project and a B&O tax credit on the other half of the costs. In 1978, with the incentives in hand, Crown began the five-year modernization project despite a deep recession with double-digit unemployment, inflation and high interest rates. But in 1981, when Republicans took control, the state was in a financial hole. Republican Gov. John Spellman, House Speaker Bill Polk, R-Bellevue, and Senate Leader Jeannette Hayner, R-Walla Walla, faced plummeting state revenues, much like the situation we face today. Desperate to bring in much-needed cash, Spellman and Republican lawmakers repealed the EAA tax incentives. That one decision added $10 million to the cost of the Camas modernization project, and even though Spellman and lawmakers later restored the EAA credits for the Camas facility, the damage was done. Since then, Crown Zellerbach and its subsequent owners have concentrated their investments outside
Resignations and shooting yourself in the foot — again
38 Kitsap Peninsula Business Journal•KPBJ.com February 2011
The recent resignation of County Commissioner Steve Bauer certainly surprised many. He came into office as the choice of the Democratic Party upon the resignation of Chris Endresen, who left to become state director for Senator Maria Cantwell, and Bauer was elected as the incumbent on his own two years ago. There are some folks who are openly coveting the job, but the only names that have surfaced at presstime are Linda Berry-Maraist, Rob Gelder, Clarence Moriwaki, Patrick Pearson and Laurie Serdahl — all of whom requested applications. Moriwaki and Gelder both went after the job in 2007, when Bauer was appointed. Moriwaki, who had previously served as the County’s Public Information Officer before becoming a victim of budget cuts, was one of the finalists for the position. The Kitsap County Democratic Central Committee's precinct committee officers will pick three finalists at a Feb. 22 meeting, and the commissioners will make the selection from those three. This isn’t a time for political ideologues and opportunists. We need an independent, pragmatic leader who understands finance, and isn’t afraid of decision-making, because there are some very hard decisions on the horizon, and we need folks who are up to the job. Hopefully, whoever is chosen is as smart and as qualified as Bauer was. Bauer has taken some heat in the media for his decision, but the reality is, there just comes a time in your life when family is more important than politics. Bauer, who had retired from a career in government after serving as a Lt. Commander in the Coast Guard, simply reached that point. And while he obviously has an obligation to the voters who elected him, the bottom line is, it takes courage to walk away from political life and stand up for what’s
important to you as an individual. His style is strongly autocratic, and among his elected peers he is both admired and feared. Although disliked by some, unlike his contemporaries, he is respected by most of the people he serves with. In my view, he’s done a pretty good job overall, and in observing his actions, I also saw a passionate dedication to things he believes in that I admire. As a newly elected, Bauer reached out to me almost immediately — something many others were reluctant to do — and over the past three years, I’ve learned a lot LARY COPPOLA from him. After working closely The Last Word with him on a number of different boards, it became obvious he’s one of those rare people who understands finance, and can look at any set of figures and drill down to the bottom line in about a half a heartbeat. I also believe he was the right guy at the right time for Kitsap County, and we are fortunate to have had his knowledge and experience to draw upon in some of the most financially turbulent times in our lifetime. So no matter what anyone says about his decision to quit, he has my respect for making what he believes is the right decision for himself and his family. Speaking of changes in leadership, I wasn’t surprised by Kitsap Transit’s one and only executive director, 69-year old Dick Hayes’ announcement that he would retire as soon as the agency finds new leadership. I used to think Hayes was an empire builder and Transit was a boondoggle, but
after serving on Transit’s board for the past three years, I now know I was wrong on both counts. The agency is actually pretty well run from a business standpoint. Hayes, who is a “big picture” kind guy, is actually pretty visionary. He leaves the “details” to John Clauson, who I know from working with him over the past three year as Chairman of the City of Port Orchard’s Finance Committee, is tight with the public buck and a more than competent manager. In my view, the agency would do itself, and the citizens of Kitsap, a big favor by just promoting Clauson to the top job and not bothering with a nationwide search. Hayes has been publicly vilified for promoting passenger-only ferry service — hence the “empire builder” label. The arguments against it are usually that we don’t need it, don’t want to pay for it, and it isn’t Kitsap Transit’s responsibility. However, the reality is we do need it. Forty percent of our workforce commutes out of the county on a daily basis, with the majority of those primary wage earners using the Washington State Ferry System (WSF). The Governor has made it exceedingly clear that the state’s ill-fated foray into passenger-only ferries won’t be repeated. So who will transport those commuters — who help fuel our local economy by spending the wages they earn in Seattle, here locally — with our governor committed to continually reducing our ferry service? Two private sector operators have had difficulty turning a profit on a passengeronly Kingston-Downtown Seattle run, which in theory should be the most profitable. That leaves government in some form or another. Time for a reality check: The choices realistically come down to Kitsap County establishing a marine-transit bureaucracy, or Kitsap Transit, which has
profitably operated two boats for more than a decade. I’ve often written that there isn’t a way for Republicans around here to shoot themselves in the foot they haven’t thought of, but I have great confidence in their ability to invent new ones. And once again, it appears they’ve done it. At their recent state meeting, the party ousted moderate former state legislator Luke Esser in favor of longtime conservative talk show host Kirby Wilber. Esser was an even-handed, pragmatist who was very successful in recruiting better quality candidates than at any time in recent memory. Wilber says he wants to take the party in a “new direction” (Read: hard right). The Democrats immediately began gleefully proclaiming the Rs had elected Washington’s version of Rush Limbaugh as their new leader. With 16 years of his radio rhetoric to draw upon, they may be able to paint moderates and incumbents with Wilber’s brush, making his radio tirades the focal point rather than the individuals in races where Republicans have good, solid candidates. Wilber’s election could also harm AG Rob McKenna’s run for Governor in 2012. With the party dominated by rural and rightleaning folks who want one of their own calling the shots heading into the 2012 elections, there's a very real possibility McKenna will face a high-profile opponent from within the GOP —perhaps Clint Didier. Voters want action and civility — not confrontational rhetoric. And while some Republicans were unhappy with the gains the party made under Esser in light of what happened nationally, I suspect under Wilber, the Republicans will have a hard time recruiting the quality of candidates the party desperately needs to sustain and strengthen the gains it made in 2010.
Don’t blame Eyman for ferry mess I don’t know Abell Smith other than he’s a newspaper cartoonist, but it’s obvious that the words of the president and an assortment of others calling for cooling the rhetoric didn’t get through to him. A five-panel cartoon appeared in my daily newspaper the other day ADELE FERGUSON featuring an unnamed Politics man and a caricature of initiative activist Tim Eyman with these captions. “Good evening, I’m here with an announcement of great importance to Washington state. Joining me is my friend, Tim Eyman. “For years, one of the signature causes of this great citizen’s long (and lucrative) career has been his crusade to eliminate all funding sources for our state ferry system. Now that the ferries
are completely broke, we are at a crossroads.” Now, that’s a damn lie. I’ve known Tim Eyman for years and eliminating funding for the ferries is the farthest thing from his mind. His signature cause is requiring state lawmakers to seek and get the permission of their constituents before they raise any taxes. In fact, after I got this far in the column I decided I’d better give him a call and see if he agreed with my assessment of his “signature cause.” “Absolutely!” he said. ‘Any time the Legislature wants to take more of the peoples’ money, whether it’s taxes, fares, tolls, fees, the people should have the final say at an election. Let the voters decide.” Well, you haven’t done too badly, I said, I notice the newspapers come to your defense every time a politician pushes a bill attacking the right to initiative and referendum. “It has become grossly partisan,” he said, “Republicans support the initiative process,
Democrats are against it. But while Democrats control the House, the Senate, the governor’s office and pretty much the courts, there’s one area they don’t control and that’s the initiative process controlled by the voters.” By the way, he said, there’s a bill in the 2011 Legislature by Sen. Paull Shin, DMukilteo, that would raise the filing fee for an initiative from $5 to $500. Legislators introduce over 3,000 bills every legislative session, they ought to be charged $5 for every bill they file. Well, that will never happen. But Tim Eyman shouldn’t bear the blame for the ferries going broke. It’s the voters and the legislators who are passing the laws, not him. Besides, you want to know the real reason ferries are financially foundering? Because the year before Eyman’s $30 car tab initiative was even proposed, the Legislature decided to monkey with the
funding formula for ferries, dropping most of the gasoline tax and substituting the motor vehicle tax. I wrote columns against Eyman’s Initiative 695 and didn’t vote for it because I felt it would be disastrous for the ferries. I guess nobody paid any attention to me. I know my husband didn’t. After the election when we discussed it — no, I never tried to persuade him to follow my lead or advice in elections — he told me he voted for it because it would save him about $400 on his pickup truck license. Gov. Gregoire obviously doesn’t care whether ferries run or not or she wouldn’t have come up with such a dumb idea as one big ferry district. What should be done? Restore ferries to the gas tax distribution pot where they were before and let them fight it out with highways for their fair share. Aren’t they our marine highways? (Adele Ferguson can be reached at P.O. Box 69, Hansville, WA., 98340.)
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