September 2011 Vol. 24 No. 9
The Voice of Kitsap Business since 1988
Silverdale Engineers Jump To High-Tech By Rodika Tollefson Site preparation for a new construction project can be a major expense, especially when there is a lot of grading involved. Traditionally, engineers have to use a little intuition to figure out how to move dirt around a site in order to minimize dirt “import.” Property owners would get a site designed, then send it out for bids — while likely already making loan payments — and if the cost estimates turn out too high, they may send the project back to the drawing board. Silverdale engineering and planning company MAP Ltd. has found a way around that process that can optimize the site design long before a project goes out for permitting and bidding. The company uses a high-tech tool, a design software called SITEOPS that can change site design on the computer in real time and calculate cost differences on the spot. Not only does the program save money on moving dirt, it also cuts design time significantly. “It creates an efficient site design and maximizes the dollars,” said Pat Fuhrer, a civil engineer who is one of three principals at MAP Ltd. “They call it CAD with a brain.” MAP Ltd Principals: Mark Eisses, John Kieffer and Pat Fuhrer.
Cover Story , page 4 $1.50 Display until October 1st
Technology, pp 24-25
Editorial, pp 36-38
Special Reports:
Financial, pp 26-27
Real Estate & Construction, pp 8-18
Human Resources, pg 29
Port Orchard Chamber, pg 32
Inside
Environment, pg 33 Automotive, pp 34, 35
Home Builders Newsletter, pp 19-22
Goller to speak at Pondemonium Jeff Goller of Goller Grade & Gravel will be speaking at Pondemonium, put on by Aquascape, an annual water feature design and installation conference taking place in Chicago. Goller is a certified Aquascape contractor and owns Goller Grade & Gravel, a general contractor providing heavy landscape services such as water features, rain water harvesting, lighting and hardscapes, rock walls, driveway creation, drainage systems and excavation. Visit www.WeDoPonds.com or call (360) 779-2388 for more information.
Martin Employee of the Month at West Sound Workforce West Sound Workforce has awarded Stephen Martin the June Employee-of-the-Month honor. According to his supervisor, “Stephen has always been responsive, reliable, and dependable and a very good worker on every assignment we’ve asked him to take. He never turns down our request for help, even last minute calls, and our employers are always very pleased, frequently asking him to return for additional assignments they may have.” Some quotes from happy employers include “Stephen is a great worker; he catches on quickly and also works very hard.” “Stephen is alway s here on time and works with little supervision.” Martin was honored by West Sound Workforce with gifts, an award certificate and floral arrangement at his local awards celebration. West Sound Workforce has offices in Poulsbo and Gig Harbor and can be reached at (360) 394-1882 or on the web at www.westsoundworkforce.com.
Hospice names Nielsen as new medical director Hospice of Kitsap County, the community’s expert in end of life care, announced that Dr. Ron Nielsen has been named as the agency’s first fulltime board certified Medical Director. In this role, Dr. Nielsen is responsible for overseeing the medical care and treatment of Hospice of Kitsap County patients in their homes, nursing homes, assisted living communities throughout Kitsap County, and at the Fred Lowthian inpatient hospice care center located in Bremerton. He will be consulting with patients’ attending physicians, and supervise Hospice’s own team physicians, guide staff and volunteers and serve as a resource to practicing physicians and other healthcare professionals on the benefits of hospice and palliative care for patients and their families. Dr. Nielsen received his medical degree from Loma Linda University. He was board certified in Internal Medicine in 1984, and in Hospice and Palliative Medicine 2006. His other honors and distinctions include Professional Education Chairman of the American Cancer Society in Humbolt County, Certification in Negotiation, Mediation, and Conflict Resolution by Gonzaga University, and prior member of the American Collage of Medical Executives. For more information about Hospice of Kitsap County services and programs call (360) 698-4611.
2 Kitsap Peninsula Business Journal•KPBJ.com September 2011
Kitsap Physical Therapy hires new therapist Thayne Bosh recently joined Kitsap Physical Therapy and Sports Clinics (KPT) at its Silverdale facility. He is a graduate from the University of North Dakota Doctorate Physical Therapy program. Bosh comes to KPT with experience in working with a variety of clientele, especially athletes. Having played football at the University of North Dakota and being a certified strength and conditioning specialist he brings knowledge and experience to help his patients. “I have always had a passion for the art of human movement. The variability of how people move, compensate and react to their environment is something of a mystery. Trying to help people learn more about themselves and understand why they have physical pain can be a large part of that mystery. Being a physical therapist allows me to not only help people understand their own patterns but incorporate new habits into daily life. Hopefully along the way I can teach them to perceive movements and understand how to improve symptoms while achieving their personal rehabilitation goals.” For more information v isit www.KitsapPT.com or call the Silverdale office at (360) 613-1834.
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Leah Nitz opens Constructive Consulting Constructive Consulting, a relatively new business in Kitsap County, specializes in performance management for small, medium and large businesses. Leah Nitz, a Port Orchard resident, started Constructive Consulting which is focused on streamlining businesses, working with clients to measure key objectives and develop a plan to make businesses more efficient and profitable. The intent is to determine areas of opportunity and to develop new processes to save clients time and money, by tracking the trend of specific metrics and then ascertain the root cause and design a reusable process. The added efficiencies benefit clients far into the future. Nitz has worked for Washington Mutual Bank, J.P. Morgan Chase, and most recently Microsoft. Constructive Consulting can be reached at (360) 434-4033.
Fall business start-up classes at Washington CASH Washington Community Alliance for Self-Help (CASH) is holding an orientation for its fall business development start-up classes, Tuesday, Sept. 13, at Kitsap Community Resources, 1201 Park in Bremerton, from 6 – 9 p.m. Washington CASH has provided business training and support to more than 800 local entrepreneurs. More than fifty active businesses currently participate in the free business support program. The business development training classes begin on Sept. 20 and meet each Tuesday for eight weeks at Kitsap Community Resource Building in Bremerton, from 6 – 8:30 p.m. There is a $40 fee for the course workbook. The training is free to low income households, and the training site is wheelchair accessible. Topics included in the eight-week business training include developing a clear definition of your business, taxes, insurance, sales, marketing, calculating the break-even point, learning cash flow techniques, developing a pricing strategy, preparing financial statements, projecting sales and selling. There is a strong focus on developing profit and loss statements and learning how to make a business profitable. Students in the training class will prepare a business feasibility plan, taught by experienced working professionals. “We expect our entrepreneurs in this program to actively participate in class and we work hard on presentation and sales skills. And, yes, there is weekly homework,” said Stuart Walton who teaches the classes. Following graduation, students may apply for on-going business support training and apply for peer loans and continue in the group program that meets every two weeks. For program and pre-registration information, email stuart@washingtoncash.org or call (360) 698-4088 or (206) 914-4824. On-line registration is available at www.washingtoncash.org.
5th Annual Healing Hearts Psychic Fair set for October
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Harborview Massage & Wellness opens new Silverdale location
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Harborview Massage & Wellness Center in Port Orchard has opened a satellite location in Silverdale. “One of the things that make the massage experience different in our center is that the rooms are lit with natural light, and feature views,” explained owner Monika Geiger. “In our Port Orchard location all of our rooms have marine views, our new office in Silverdale has a view of the trees — so we’re calling it our Forest View Room.” The new office is located at 9481 Silverdale Way, #208, above the Kitsap Credit Union. For more information contact Geiger at 360-895-Aaah (2224), or www.harborviewwellness.com.
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September 2011 Kitsap Peninsula Business Journal•KPBJ.com 3
The 5th annual Healing Hearts Psychic Fair, presented by Chalice Hart-ATC is coming to the Bremerton Masonic Temple, located at 878 5th Street on Saturday, Oct. 8 from noon until 8 p.m. The event features a day of enlightenment and healing provided by the area’s gifted psychics and healers. Vendors from around the Pacific Northwest will be offering unique and magical items. There will be a variety of psychic readings including tarot, channeling, and aura readings, massage, Reiki or other type of healing sessions available, as well as food, free entertainment, henna tattoos, raffles, and more. All readers, healers, entertainers, and those working at the fair are donating their time and talents. Sessions are provided at greatly discounted rates with the proceeds going to the Healing Hearts Fund, which is dedicated to helping those in our community who are facing unexpected life challenges. Admission is free and parking is available.
IsItTaxable.com offers answers to sales, use and excise tax questions
from page 1 He said one of the biggest challenges in the construction industry is designing the most efficient site in the most economic way. The more dirt has to be brought to the site after grading, the higher the cost, especially for smaller projects. The cost is further impacted by details such as retaining walls and parking lot arrangement. One of the things SITEOPS does is balance the dirt work on the site, essentially moving it around (virtually) from graded areas to areas that need infilling. It can also run through scenarios of roads and parking lot locations, serve as a grading tool etc. With one click, a building can be rotated and the road turning radius can be changed. The program does about 30 percent of the work, so the engineers still have to use their knowledge and experience to complete the design. “This gives us the ability to sit here and engineer the site in real time and gives our clients the ability to visualize what they’re spending money on,” Fuhrer said. He estimates that for bigger sites, design time can be cut by two-thirds using the tool. Some aspects can be finished within minutes instead of several days. The information can then be seamlessly imported into AutoCAD, and CAD drawings can also be brought into SITEOPS as a starting point. Other
information that can be imported into the software includes topographical maps and predefined parameters from a library of floor plans and templates, all the way down to design requirements in a jurisdiction (such as the unique rule for parking lot landscaping in Poulsbo). The data can also be incorporated into architectural drawings and even sent via GPS to graders on-site. “It’s total automation — it’s the way things are going,” Fuhrer said. The program uses cloud computing so the information does not reside on the firm’s servers. At MAP Ltd., three employees including Fuhrer are trained and certified in using the program, and they can manipulate the variables and run scenarios with customers watching by their side. “What you’re seeing in real time is the cost estimate based on your design changes,” Fuhrer said. Those changes can include everything from changing the number of building floors and parking lot angles to limiting the height of retention walls. The operator can also specify restrictions such as leaving specific areas untouched, which would be important if the site has features such as wetlands, or grading within a certain depth, as would be necessary in the case of rain gardens. Clients can receive PDF, Excel and HTML files with the completed designs, as well as use the information for marketing presentations. So far, the idea has especially
4 Kitsap Peninsula Business Journal•KPBJ.com September 2011
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been popular for feasibility studies, Fuhrer said, but they’re starting to use it for projects as well — such as some preliminary site work on the proposed Bremerton motor sports park. MAP Ltd. is one of only two companies in Washington state currently certified in using SITEOPS, and the three company employees trained to using the program are among only about 150 worldwide who’ve gone through the three-day training program. The technology is mostly popular on the East Coast and in California. “I think in five to six years everyone will run this software. They’ll have to in order to be competitive,” Fuhrer said. SITEOPS has been a substantial investment for MAP but the company doesn’t charge clients extra for utilizing the program. Fuhrer said that originally they have contemplated adding an extra charge but decided against it — after all, they don’t charge extra for using AutoCAD software. “It’s another tool in our toolbox so we don’t price it any differently,” he said. “We see it as a tool to bring people in the door.” As for any company in the construction industry, MAP Ltd. has had to look for new ways to market itself. In addition to site planning and civil engineering, the business offers surveying and it serves both the commercial and residential market, though work in the residential sector has significantly tapered off. Most of the work has come through word of mouth and repeat customers in the past, and they’re taking the same word of mouth approach with SITEOPS — inviting perspective customers as well as colleagues such as architects and Realtors to watch demonstrations. But the principals are also ramping up their marketing strategy. A website, for example, is in the works to showcase the firm’s new high-tech capability and how it’s different from the competition.
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Healthcare Quarterly
“We’re creating a superior product,” Fuhrer said. “It gives (a project) more predictability, and gives customers the confidence it will be the best project possible.” Being an established company, of course, helps. MAP Ltd. was founded in 1971 and in 1989, seven senior employees bought it. Over time, the number of principals went down to three: Fuhrer and Mark Eisses are civil engineers and John Kieffer is a land surveyor, and together they have more than 60 years of total experience. All three grew up in Kitsap County and have worked with each other for more than 20 years, but Fuhrer and Eisses knew each other back in college. Currently, the firm has 10 employees including a full-time surveying crew. The company’s civil engineering work ranges from designing roads and sites to fish passages and estuary restoration. Locally, they have worked on most of the major roads in Silverdale as well as such retail landmarks as Costco in Silverdale and Fred Meyer in Bremerton. They have also worked pro bono on projects such as pedestrian bridges at Clear Creek Trail. Fuhrer recalls that when he first started in the industry more than 20 years ago, AutoCAD was in its infancy and nobody used it in the county. He and Eisses discovered the program in the basement and started playing with it during lunch, soon giving the information to “the guys” to use in the field and becoming the first firm in Kitsap County to adopt the technology. Incorporating SITEOPS is a bit like those old times. “This is like AutoCAD 101 to us, it’s a revolutionary tool,” Fuhrer said. “We’re following in the same footsteps. SITEOPS makes civil engineering fun to do again, and it gives us much better ability to analyze different scenarios.”
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Herns close Courtesy Ford in Poulsbo, decide to retire
Be Tempted opens in Seabeck Sondra Anderson and Suzanne Arkless announced that they have opened a new gift Boutique, “Be Tempted” on the waterfront in Seabeck at 15398 Seabeck Hwy NW, Suite 100. The hours are Tuesday through Saturday from 10 a.m. to 6 p.m.; Sunday 10 a.m. to 5 p.m. and closed on Mondays. Reach Be Tempted at (360) 830-2525.
floor of the OC Poulsbo campus, and the equipment is still in pristine condition. Other Hern impacts, not widely known, have also impacted the community in a positive manner. When the original Marine Science Foundation in Poulsbo experienced budget shortfalls, John joined the new Board, which made the necessary changes, and helped raise the funds to revive the Marine Science Center. With former Poulsbo Mayor Mitch Mitchusson, John Hern put together the deal to bring Regal Cinemas to Poulsbo. And the list goes on and on.
With the downturn in the economy, like many auto dealers across the nation, the Herns have found it increasingly difficult to maintain their dealership, and had been seeking a buyer for the past several months. Although they worked with several prospective buyers, nothing came to fruition, and they made the difficult decision to close the dealership. John commented that making the decision even more difficult is the fact Ford has a great new product line of cars and trucks. He added that other local Ford dealerships will honor factory warranties.
The Herns have mixed emotions about the announcement and their decision. They are coordinating with Ford and others to make this transition as smooth as possible, and wish the best for their many loyal customers, friends and employees — of which approximately 30 will be impacted by the closure. Longtime friend and attorney, Roger Sherrard, noted, “Poulsbo and Kitsap County are much better places to live and work because of the significant contributions of John and Terri Hern.”
September 2011 Kitsap Peninsula Business Journal•KPBJ.com 5
After nearly 30 years as owners of Courtesy Ford in Poulsbo, John and Terri Hern have announced that they will close the landmark dealership and retire. Since opening Courtesy Ford in 1982, the Herns have made significant contributions to the community, believing it is important to give back. Not only have they been a major employer and owners of several businesses in the area, but their endeavors have had a positive influence on the community. Long time Poulsbo City Councilman Ed Stern, on hearing the news, stated, “When you have wanted to accomplish something around here, we knew that if John Hern was involved it would get done.” Shunning the limelight, John preferred to work quietly behind the scenes. For example, few people know that it was the Hern’s involvement and Courtesy Ford’s contributions that kept the Poulsbo 3th of July fireworks going for several years when funds were short. The Herns championed the Olympic College Poulsbo campus and the medical programs of the College. Terri has been a key Board Member of the Olympic College Foundation for many years, while John took the lead in improving the infrastructure and appearance of Viking Way — twice. “John and Terri Hern have made a significant, personal impact on an entire generation of Olympic College students in the last decade, and their philanthropic legacy will continue to impact future generations of local college students, said Olympic College President Dr. David Mitchell. “Their generosity leaves an indelible mark on Olympic College. The Hern name is synonymous with community stewardship. John and Terri’s commitment to Olympic College, higher education, and their local community will be long remembered in Kitsap County.” Over the years, the Herns’ contributions to Olympic College included funding to equip the new facility in Poulsbo, an interactive, state of the art lecture hall, funding for the Physical Therapy Assistant Program to have the latest equipment, and student scholarships. Their efforts laid a solid foundation for the PTA program recently identified by accreditors as a model for excellence. The start-up gift from the Herns was the foundation of OC’s successful program. This year, the PTA program was re-located to the ground
NLRB dismisses all union claims that KMHS engaged in unfair labor practices A federal Administrative Law Judge from the National Labor Relations Board (NLRB) has dismissed all unfair labor practice charges filed by the Service Employees International Union (SEIU) 1199NW against Kitsap Mental Health Services (KMHS). The 26-page decision was based upon a three-day trial held earlier this year. The case arose after a majority of KMHS employees signed a petition asking the agency to withdraw recognition from SEIU 1199NW as their union. Based upon that petition, KMHS withdrew recognition from the union in December 2009. The union responded by filing numerous unfair
labor practice charges against KMHS. The union argued the employees’ petition should be invalidated and that the agency’s withdrawal of recognition was unlawful. The Seattle office of the NLRB investigated the union’s allegations extensively for several months. In early 2010, the Seattle office concluded that all of the union’s claims should be dismissed. The union then appealed the Seattle office’s decision to the Appeals Division of the NLRB in Washington DC. In January the Appeals Division reversed the decision of the Seattle office. The Appeals Division directed the Seattle office
to prosecute KMHS based upon the union’s allegations — even though the Seattle office had previously investigated and dismissed the same claims. The trial was held from April 20-22 and included extensive witness testimony and submission of evidence. In dismissing all the allegations, the Judge held the union’s claim s against KMHS were unsupported by fact and law. Significantly, the Judge found that the petition signed by a majority of employees to oust SEIU 1199NW must be honored and that KMHS’ withdrawal of recognition from the union was lawful. “This clearly was the result of a team
effort by KMHS employees; from the unwavering support of the Board to the consistent encouragement and bravery of the direct line staff. KMHS has remained committed to supporting our staff ‘s majority decision. At the same time, KMHS has incurred significant costs responding to SEIU’s pursuit of these matters and in the defense of KMHS employees’ petition requesting KMHS withdraw recognition from the SEIU 1199NW. We believe a majority of employees have the right to decide the issue of union representation. They are in the best position to determine what is best for themselves and their families. We are pleased that after nearly two years, all of our energy and our resources can now be fully focused where our heart and our mission is – serving our clients.” states Joe Roszak, executive director of KMHS. Roszak noted that although employees have repeatedly prevailed against many attempts by SEIU 1199NW to impose itself as the employees’ union, it can still appeal this decision further. “It is our hope that SEIU will finally honor and respect the decision made by a majority of our employees. The KMHS Board of Directors has repeatedly expressed its readiness to support employees. We are very much looking forward to refocusing all of our energy and our resources on the significant needs of the people we serve in our community.”
6 Kitsap Peninsula Business Journal•KPBJ.com September 2011
Local company awarded national software development contract The U.S. Patent and Trademark Office (USPTO) has awarded a local company an additional software development contract valued in excess of $1 million over five months. The company, Applied Technical Systems (ATS) has hired additional software engineers in both its Silverdale and Washington, D.C. locations to support this new business. This new contract focuses on developing an intuitive, streamlined system to aid in patent application examination and decision making processes. The solution includes an entirely new graphical user interface, advanced decision support services, information exchange and system interoperability. This solution will also be designed to improve workflow with a significant time reduction in the data to decision process. “ATS is pleased that our customers continue to place confidence in our capabilities and successful track record of delivering quality solutions,” says Carey Kolb, ATS vice president of systems engineering. “We take pride in the fact that we bring largescale contracts – and job opportunities – to the Kitsap community.” Through Internet-based technology, ATS will provide the USPTO with improved information management systems that supply patent examiners with the answers and tools needed to make faster, smarter decisions in the patent examination process. ATS, headquartered in Silverdale, also has offices in Washington D.C. and Norfolk, VA. For more information, visit www.atsid.com or call (360) 698-7100.
Pecora leaves Pumas after championship season
Reduce Reuse Recycle
First time collaboration between Kitsap County Historical Museum and Amy Burnett Gallery On Thursday, Sept. 15 from 5:30 to 7 p.m. a special event, “That Hat”, will feature an art and history event pertaining to the Bremerton Airport property. For many years Amy Burnett has painted a woman wearing a turned up hat, based on a photograph of her great grandmother, Maggie Allen, who along with her husband JW Allen and family homesteaded the airport property. During WWI the government took a portion of the property for one dollar. Most of the Allen clan moved to downtown Bremerton, where JW contracted a team of horses in the building of the Navy Yard. Later son Bruce Allen would establish B. H. Allen Plumbing & Heating on 6th Street and later owned by his son (Burnett’s father) George Allen. Oral Allen remained on the airport property with the Bayes family. This is a two location event: 5:30 p.m. – Reception at the History Museum where Burnett will be donating the framed photographs of Maggie and JW Allen to the museum. Norma Bayes will also donate related items and give a talk on never-before-shared information about the airport property. 7 p.m. – The gala reception moves two doors down to Amy Burnett Gallery where Burnett debuts a new exhibit of paintings, “That Hat”, based on her great grandmother. Also Burnett will be donating a painting to the Port Commission in honor of her family, the homesteaders. Brandon Day will provide progress live jazz. There is also a special installation where dozens of vintage hats are hanging from the ceiling. There is no entry fee at either party location, but donations are encouraged. For more information, contact Burnett at (360) 373-3187 or the Kitsap County Historical Museum at (360) 479-6226.
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September 2011 Kitsap Peninsula Business Journal•KPBJ.com 7
The Kitsap Soccer Club announced that Executive Director Ben Pecora left the club at the conclusion of the season playoffs. The departure is amicable. Pecora was the first person hired by owner Robin Waite in the summer of 2008. He brought nearly 20 years of sales, sports marketing, special events management, public and media relations, communications and non-profit and business management experience to the club, including three seasons with the (A-League) Seattle Sounders in the nineties. In very short order he was able to launch what many believe is one of the most successful mid-level professional teams North American soccer has seen. The Pumas, under Pecora’s leadership, are regularly among the league leaders in attendance and made the playoffs and the US Open Cup in each of its first three seasons — the first time a club has managed those feats. The Pumas also claimed the Northwest Division title in two of those years and has advanced to never less than the league quarterfinals each season, so far. Pecora engineered arguably the largest sponsorship sales effort in Kitsap’s sporting history, landing such client/partners as Windermere Real Estate, Harrison Hospital, Westsound Orthopaedics, Taco Bell, Kitsap Physical Therapy and a host of other firms. Additionally, he handled all of the club’s media, public and community relations duties. For these and other efforts, Pecora was given the award for “Marketing Excellence” by the United Soccer Leagues in November 2010. USL oversees and administers over 140 clubs across North America and the Caribbean. The Pumas branding and game-day operations, also headed up by Pecora, are acknowledged as among the best in the league. He was also instrumental in bringing topclass players from around the globe into the roster along with engineering the purely cash sale of attacker Cameron Hepple this past regular season – a nearly unheard of feat in North American soccer – to a high-level European team. “This has been a great opportunity for me to build something special,” said Pecora. “It’s been my pleasure to serve this community. I thank Robin and Karen, the players and Pete (Fewing) plus all the volunteers and staff for showing the trust in me to build and manage this franchise. It’s time to move to a higher level and challenge — I had personally hoped we’d be at a higher division by now – the PDL season is so incredibly short making it a difficult proposition to run a fully pro operation. That said I’m looking forward to spending more time with my kids and working on some projects that have been on the back burner for quite some time. I’ve done almost nothing else for the past three years.”
Art, history, wine and jazz event Sept. 15
Local builders diversify, cut back to stay successful
8 Kitsap Peninsula Business Journal•KPBJ.com September 2011
By Rodika Tollefson The hammers are still swinging on job sites around Kitsap Peninsula, although the activity in the construction industry is a far cry from four or five years ago. Veteran builders have found ways to cut costs, stay competitive, and diversify in order to survive — and those who are say they are fortunate to find ways of keeping their crews busy. Jim Way of Port Orchard-based Pristine Homes has seen a typical change. Where his work was about 70 percent custom homes in the past and the rest Jim Way remodels, that ratio has flipped. Kitchens and additions are among the popular remodel projects, as are energyefficiency improvements thanks to the current tax incentives. Way has had to cut his office staff hours in half and downsize in other ways. “Everybody’s had to do that, as much due to the economy as new taxes,” he said.
“It’s more expensive now to have an employee than before.” Taxes such as L&I and unemployment are not the only expenses that have gone up. Builders say regulations have continued to change. “All our costs have gone up due to increased regulations from the state,” said Wayne Keffer, owner of Wayne R. Keffer Construction Inc. in Poulsbo. “There’s a lot of pressure on price and to stay competitive. What we find is, we’re increasingly competing against people that aren’t professional remodelers or not licensed at all.” Keffer’s company has always offered home maintenance and repairs along with remodeling and some new homes, so he hasn’t seen a decrease in the number of projects. What he’s seeing is a change in what customers are looking for. “Sky is not the limit any more; they’re Wayne Keffer looking for value in
Proven Standards. A Solid Value. FPH Construction, Inc. is a full service, light commercial construction firm serving West Puget Sound since 1983. During that time, it has been our
photo courtesy BJC Group
remodels that make sense, meet their needs and are not the most expensive things,” he said, adding that builders are a lot more careful with product choices in order to keep customers on budget. Maintenance projects are also popular since people who can’t sell their homes decide to spiff them up instead. In the past, companies like Kitsap Trident Homes referred Justin Ingalls calls for maintenance
and smaller projects to other builders but the tight market has caused them to rethink their strategy. “People are investing into their homes to make them more livable and comfortable,” said Kitsap Trident Homes project manager Justin Ingalls. Maintenance and home warranty projects are now common for the Poulsbobased Kitsap Trident Homes, as are specialty remodels for spaces such as mudrooms or unfinished basements. Builders, page 9
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Sullivan Heating builds new headquarters By Rodika Tollefson The name Sullivan Heating & Cooling Inc. has been well-known around Kitsap Peninsula for many years. The 17-year-old company is frequently the business of choice both for builders and homeowners, and has grown and diversified over the years to stay successful. High-end residential systems and commercial retrofitting are the bread and butter of Sullivan Heating & Cooling, but the company also takes on new commercial construction, such as the new Suquamish museum currently in the works. A separate division, which has its own budget, offers maintenance services on any manufacturer’s system — one of few companies in the state that can service any brand. The company is in the process of building new headquarters in Bremerton next to the Home Builders Association building. Owner Dan Sullivan sold the current 10,000-square-foot Auto Center
Way building — which he developed himself 13 years ago long before the area became an automotive district — and hopes to move to the new facility in late fall. Green features such as a solar hot-water heater, a high-efficiency heat pump and pervious pavement will be incorporated into the new headquarters. In the 25,000square-foot new facility, Sullivan Heating will only take about 8,000 square feet of space, leasing the rest. Sullivan said when he first started in business, he needed a large warehouse because most of the suppliers were in Tacoma and beyond, but that’s changed. “We’re surrounded by suppliers so there’s no need for us to have this huge warehouse,” he said. Sullivan has diversified his interests two years ago by starting JD Sullivan Investments, a development company. JD Sullivan Investments is developing the new property “out of pocket” after the bank
pulled out of the loan when the economy went south. “I saw opportunities in development after buying some properties,” Sullivan said. His wife, Jill, is a big part of the development company and is also involved with Sullivan Heating & Cooling (www.sullivanheating.com). The couple both grew up in North Mason County and have local roots. Sullivan got his start doing sheet metal work at the Puget Sound Naval Shipyard, later working for Lockheed. He founded the business with five employees while wearing multiple hats including foreman, service manager and office manager while also doing all the design and layout of the systems. The business has grown through the years to acquire several of the smaller competitors, and to date has remained the oldest in Kitsap County in its industry. During its heyday, the company employed 40 people but the economy has
Sullivan, page 10
BUILDERS
in August including four multi-million dollar homes. Like other builders, Fairbank Construction has found a way to diversify — in this case, adding military projects to its portfolio and doing work at several installations including Bangor and Joint Base Lewis-McCord. The company has had to downsize its office and field staff significantly but there were good signs: Fairbank said they planned on hiring as many as 15 more people in the next few months. Not all signs are good industrywide, however. Robert Baglio of BJC Group
based in Port Orchard said most of the commercial projects are smaller because they are financed either through SBA or by owners — the banks are not lending, he said. To keep up with the downturn, the company has had to pound the pavement much harder to hear about job opportunities and get the foot in the door. Streamlining operations and keeping costs competitive has also been key. “The idea of running leaner and being more efficient as an organization has become a necessity,” Baglio said.
A few current BJC projects include a new 3,000-square-foot office building shell in downtown Gig Harbor and a recent renovation of the Haselwood GMC dealership to include modernized customer amenities, complete interior and exterior facelift. BJC is also working on a similar project at Grey Chevrolet. “One thing I see, even though conditions are tough, is a never-ending cycle of new regulations,” Baglio said. “Every new regulation causes us to incur extra costs. There’s a disconnect on the regulatory side.”
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September 2011 Kitsap Peninsula Business Journal•KPBJ.com 9
from page 8 “We’re finding we’re spending more time now on estimating to gather more information,” Ingalls said, adding that not only do they talk to more suppliers and subs to keep costs competitive but also are finding themselves checking to make sure contractors are still licensed and bonded. Commercial builders have seen a similar change in demand, with tenant improvement projects dominating the market. Tad Fairbank, owner of Fairbank Construction Co. Inc. on Bainbridge Island, said they are spending now more time than ever before on “value engineering” since Robert Baglio customers are looking for best value at lowest price. The company’s work is split about half residential and half commercial, and there’s a separate division called Fairbank Special Services that specializes in remodels, keeping 20 people employed full-time on those projects. Fairbank started the new division six years ago, when the company had 70 employees and he looked for ways to keep them busy with work. “I felt sooner or later we’re not going to be able to be building new homes at that level and needed to explore other options,” he said. Fairbank Specialty Services was up and running, with equipment and project managers in place, when the economy took a dive, which has given the company an advantage from the start. A few new construction projects by Fairbank Construction include Jackson Village, a community service center with eight homes for Kitsap Community Resources in Port Orchard, and some office buildings. On the residential size, eight homes were in various stages of completion
Introducing a new Residential Damage Mitigation program “Bolt It – Brace It – Do It” History has shown that houses, if bolted to their foundations and walls are braced, can withstand much of the damage incurred during an earthquake. Homes built prior to 1985 are the primary focus of the “Bolt it-Brace it-Do it” Home Retrofit Program. Home retrofitting involves bolting a wood-frame home to its foundation and providing sheer/pony wall strength. The goal is to increase a home’s structural integrity. While a retrofit may not protect your residence entirely, it will minimize your losses and is one step closer to eligibility for earthquake insurance.
Through a free home retrofit class (approx 3-hours), the homeowner can learn about: • Home evaluation • Permit process • Proper bolt and plate installation • Safety and engineering solutions Upon completion of this class, the homeowner will be able to retrofit their home themselves or be a knowledgeable client when hiring a state registered, professional contractor to provide this service. This event is being sponsored by the
Kitsap County Building Departments, the Home Builders Association of Kitsap County, the Olympic Peninsula Chapter of International Code Council and the Kitsap County Department of Emergency Management in coordination with the
Simpson Tie Down Company who is providing the hands on training. The first class is Saturday, Sept. 24, visit www.kitsapdem.org to register or call (360) 307-5871 for more information.
SULLIVAN
able to make it through the downturn successfully. “I thank the Lord for watching out over us,” he said. “We downsized our crews as needed but we kept service strong.” As technology constantly changed through the years, Sullivan Heating & Cooling has stayed on the leading edge. One of the newest advances is geothermal heating. Tubes are installed five feet below ground, where the air is at a constant temperature and efficiency doesn’t change with temperature variations. The technology has been very popular in the mid-West and on the East Coast but current tax incentives are compelling property owners locally to adapt it as well. “It’s growing extremely fast here,” Sullivan said, adding that they’re also seeing an increased interest in solar heating. The company does work as far as Tacoma and the Olympic Peninsula. “We do the whole gamut, from servicing for cities, to commercial and residential,” Sullivan said. Part of the businesses’ success, however, is being selective with its projects — and also making sure they price them right. Sullivan signs off on every bid that goes out. “It needs to be priced right to be profitable,” he said, “but we’re extremely fair-priced.” He said customer service has been key to survival as well, and so has using a conservative business approach — such as saving for rainy day — and staying ahead of the curve. “There’s continuous training and education,” he said. “You have to keep up or you’ll be left behind.”
from page 9 forced downsizing in recent years. The business now has about 25 employees who work in two separate divisions, and Sullivan said he is thankful for having been
Putting America
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10 Kitsap Peninsula Business Journal•KPBJ.com September 2011
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Sentinel Construction diversifies with focus on energy improvements
Surgery Center expansion contract awarded to Tim Ryan Construction Tim Ryan Construction, Inc. (TRC) recently announced the award of a contract to provide an additional operating room for Surgery Center of Silverdale. The project owner is Medical Partners LLC. The new expansion will provide finishes including mechanical and electrical work to create a third operating room to provide expanded services for the community. TRC can be reached at (360) 779-7667 or on the website at www.TimRyanConstruction.com.
With the homeowners’ permission, Godbolt invited other tradesmen and building professionals including architects to watch the first test — creating a David Godbolt demonstration. “I wanted them to see how their work impacts other trades and the whole home,” he said. Godbolt has been involved with the Home Builders Association of Kitsap County’s Green Built program for a few
years and about four years ago, he received his green building certification. That’s when he decided to specialize in high-performance buildings, especially since many of his clients are older (Godbolt also specializes in universal design, which allows people to stay in their homes as they age or have a disability). The current Poulsbo remodel, he said, is an example of how universal design and high-performing buildings go hand in hand. “The client loves the house and wanted to stay, and she had the ability to
do the retrofit and do everything right,” he said. Godbolt said he would like to see more homeowners do energy audits when they consider remodels, even if they can’t make the repairs right away. Besides, he adds, some of the recommendations in the extensive report they receive are simple, DIY projects, like caulking or replacing appliances. “Even if it doesn’t save them a lot of money, it will at least make their home more comfortable,” he said. “…It’s a health issue.”
TIM RYAN CONSTRUCTION Qualified...Capable...Local Healthcare Construction/ ASHE Certification Dan Ryan, Kevin Ryan, Jim Beisley and Craig Frazier have received their Healthcare Construction Certificate from ASHE (American Society for Healthcare Engineering) and the American Hospital Association (AHA). This certification recognized the additional training and coordination required for construction projects in the healthcare environment. As a leader in healthcare construction, TRC is committed to having the most highly trained staff for medical and dental projects.
Rice Fergus Miller Architecture, photo by William P. Wright
Family Owned Business TRC is a family owned company that has been a fixture in this community since 1957 with a business philosophy that is based on honor and commitment, a time when your handshake was your bond. Bremerton Bar & Grill
Member of US Green Building Council The mission of the US Green Building Council is “To transform the way buildings and communities are designed, built and operated, enabling an environmentally and socially responsible, healthy, and prosperous environment that improves the quality of life.”
Certified LEED Professionals Dan Ryan, President and Adam Vega, Project Manager of TRC are certified as LEED Accredited professionals.
TRC’s LEED Projects
Suquamish Museum
– LEED PLATINUM — Rice Fergus Miller Architecture received the highest level of LEED (Leadership in Energy and Environmental Design) certification. The building is designed to use 1/2 the energy of the best performing building in Western Washington. FIRST project to receive the highest level in Kitsap County. – LEED SILVER — Suquamish Museum for the Suquamish Tribe. In addition, the facility will need to comply with stringent air quality and HVAC requirements for the preservation of museum artifacts.
360-779-7667 | www.TimRyanConstruction.com
September 2011 Kitsap Peninsula Business Journal•KPBJ.com 11
By Rodika Tollefson Remodeling projects with the goal of energy improvements have been growing in popularity in the last few years, and several local builders are seeing a demand in these retrofits. Among them is Sentinel Construction, whose owner, David Godbolt, said he has been interested in doing this kind of work for some time, and was waiting for the right kind of project to come along. Earlier this year, it did — a whole house remodel with the focus on the building envelope and energy. Sentinel Construction is in the process of a “deep energy retrofit,” complete with new appliances, furnace, heat pump, a new building envelope wrap, insulation and other upgrades. “The idea is to have a high-performance home, taking the notion of a green home to the next level,” Godbolt said. “You’re aiming to build a building that’s healthy and as efficient as possible.” The first step in the process was a comprehensive energy audit that provided recommendations for improvements and cost estimates. Sentinel used Orca Inspection Services of Bainbridge Island for the audit, which cost $300. Additionally, Sentinel contracted with a thermographer from Olympia for a thermal image scan inspection (which cost an additional $300) that included a so-called blower door test. Blower door tests are done by depressurizing a building so that leaks can be detected when outside air comes in. A panel is fit in the opening of the door with a 20-inch fan blowing out the indoor air. Leaks can be detected using several methods but in the case of this project, a special infrared camera was used. Firefighters use infrared cameras to detect people and thermal spots in dark, smoky buildings. In a blower door test, similar infrared technology is used to spot thermal heat — which is why the test is performed when it’s colder outside, usually in the morning if it’s summer time. “We walk around inside the house with the camera,” said Godbolt, who was present on site to observe the test. “This is the most advanced technology.” In addition to finding air leaks, the thermal image scan inspection can also detect other problems, such as water damage and rodent infestation. The blower door test and thermal imaging are done both at the beginning and end of the project.
Window & Door Shoppe puts down welcome mat at new showroom and warehouse By Rodika Tollefson When a builder or homeowner needs a complex window installation job — such as nonrectangular, oversized windows — chances are, they’ll be calling on Poulsbo’s Window & Door Shoppe. The company’s experienced staff has taken on many complicated projects others would hesitate to touch. “I love working on big, extremely difficult jobs. I like doing jobs that I think nobody else in the state can do,” said owner Frank Murr. “I love a real tough challenge.” In the case of the nonrectangular windows — some 60-square-feet in size — Murr said they had to be “absolutely perfect” so he measured them three times, with three different people. “Every single window fit perfectly,” he said. “…The biggest compliment I can get is a customer saying, ‘The Window & Door Shoppe did this for us and I don’t think anybody else could.’” Those types of compliments don’t only come from difficult jobs. The company specializes in doors and windows (sales, installation and maintenance) but it also installs skylights and sunrooms as well as sells locks and other hardware. Murr said he refuses to cut corners when it comes to
installation (the window installers use a special system that ensures the best fit), and that quality of workmanship has built a strong reputation for the company. “We have a true process and that process has brought me more work, along with having great installers. Having good people and a good system has made a huge difference,” he said. “We reset the standard for installation of windows in Kitsap and Jefferson counties.” The Window & Door Shoppe’s products are high-quality brands such as Andersen and Milgard. Murr keeps the prices competitive and has taken to heart the advice that a business has to focus on two out of three key aspects — price, quality and service — in order to succeed. “That’s been my driving decision-maker, quality and service. Price will take care of itself,” he said. “You can never do all three successfully. For us, it’s not just about price.” Murr has an advantage that many window and door dealers do not: He comes from an extensive construction background. For more than a decade, he worked as a superintendent for a commercial construction company that did a lot of work in Seattle. When that business closed, he went to ask Bob Bernhard, owner
of Olympic Glass on Bainbridge at the time, if he would take a look at his resume from a business owner’s perspective and give him advice on improving it. Bernhard took a look and instead of giving him advice, he offered him a job at the glass shop. “I asked him, ‘Do you think I could do that?’ He gave me the opportunity to do something I had no idea I could do,’” Murr said. “Because I had a construction background, I could build a rapport with builders immediately.” Olympic Glass bought Andersen products from a window and door store in Edmonds because it was less expensive than a dealer. Somewhat on a whim, Murr called up the owner to ask if he would open a store in Kitsap. Turned out, the owner has been thinking about the same thing but instead of opening up a branch, he offered Murr $25,000 as an investment so Murr could start his own.
“I had $25,000 in operating capital and a vision, and that was it,” Murr said, adding that he had the support of his former employer, Bernhard, and a gentleman’s agreement he would not actively market on Bainbridge. The two men are still friends to this day. The Window & Door Shoppe started out in Poulsbo in 1990 in a 20-by-36-foot garage off Bond Road, and has since changed locations four times. At the end of Shoppe, page 16
Partners In Success 12 Kitsap Peninsula Business Journal•KPBJ.com September 2011
Pacific Northwest Title Sales Team... 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
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Legacy Group loan fills niche in foreclosed home market By Rodika Tollefson When the Deardorff family was ready to buy a new home last year after about a decade of renting, it wasn’t an easy task — the family of six, including four children, needed a goodsize home that fit their budget. “With a big family, it’s hard to find a house that’s big enough and you can afford,” Janna Deardorff said. Last year, Janna and her husband, Adam, found the 2,900-square-foot, four bedroom home that seemed right. There was just one problem: The foreclosed home was a bargain, but it wasn’t habitable — it had been stripped of things like sinks, doorknobs and part of the carpet, as is not uncommon with foreclosures. As a licensed general contractor, Adam thought he could do much of the work himself, with Janna’s help, so the couple set out to find a construction loan. After a few months of red tape and endless requests to qualify for a special FHA loan called 203K, they were ready to give up. In an effort to get the house financed, they talked to a few other banks. “When we talked to Shane McGraw at the Legacy Group to see if there was an alternative, (their loan) fit exactly what we were wanting to do,” Deardorff said. “For us, it made sense and Shane agreed.” The couple was approved for a special Legacy Group Lending program called Legacy Rehab Loan that can finance properties not financeable by banks. The loan can be used for commercial projects as well as for refinancing. “There’s a huge market of distressed properties out there, such as bank-owned, cash-only, that are not financeable (by banks) because of their condition — they’re partially finished or need work that is mostly cosmetic,” said Walt Hannawacker, area manager for Legacy Group Lending, which locally has branches in Silverdale and Gig Harbor. “We lend money for the purchase and the cost of the rehab based on the completed project’s value. It allows (buyers) to buy these distressed properties, fix them up and
In the photos: Before and after kitchen photos of the new Deardorff house potentially do it without money out of their pocket.” He said the loan has been available for about three years and so far, almost 97 percent of buyers in the program purchased their properties with little or no down payment, while getting a 20 percent “equity position.” In the case of the Deardorffs, their project gained $65,000 after the improvements, 80 percent of which the couple performed themselves. They redid the kitchen, knocked down a few walls, turned a den into a fifth bedroom and replaced the floors, among other things. “We did it while working full time. We put in a lot of late nights and weekends into it,” Deardorff said. After three months of work, the family moved into their new Indianola home in March. “It was nice to work with a company that used common sense,” Deardorff said. Legacy Group, which is an employeeowned mortgage banker, uses its own private funds for the purchase and rehabilitation loan and after completion, it refinances them at best available rates. “Legacy puts up the money, then refinances with traditional banks,” Hannawacker said. Clients do not get the money unless they are approved ahead of time for the conventional loan based on the finished product. Legacy underwriters and approves all
5 Great Reasons to Buy or Remodel 1. LOW INTEREST RATES Mortgage rates are at record lows. Buying now may be the best deal you will ever get. Refinancing can reduce monthly payments substantially. 2. GREAT PRICES Housing affordability is the best it’s been in years. As supply and demand in our housing market comes back into balance, prices will begin to rise again.
photo courtesy Ellie Robinson
Community officials, local military VIP guests, Chamber members, Miss Poulsbo and Cub Scouts, all taking part in the Grand Opening Event to celebrate the opening of Liberty Hill. Quadrant Homes recently celebrated its newest community, Liberty Hill, with a special VIP Grand Opening and ribbon cutting event. Located in Poulsbo, Liberty Hill features homes from Quadrant’s new Revolution Collection, all backed by the “Built Your Way” promise of more choice and customization than any other builder. The ribbon cutting ceremony took place on Aug. 11, and was led by the raising of the flag by a local group of Cub Scouts. Guests enjoyed wine and hors d’oeuvres, with gift bags and prize giveaways. They also had the opportunity to tour a gorgeous new model home. Participating in the event was Mayor Becky Erickson, along with Quadrant Homes President Ken Krivanec and other Quadrant Homes executives.
3. OUR HOUSING MARKET IS IMPROVING Inventory of homes for sale has been declining. Pending sales have steadily improved. If you’ve been waiting for the “bottom” of the market and don’t act soon — you’ll miss it. 4. ENERGY EFFICIENCY Today’s new homes are designed to save you money on your monthly utility bills, and increasingly incorporate exciting new green technologies. Remodels will benefit with energy-saving techniques. 5. PROFESSIONAL BUILDERS, REMODELERS & LENDERS The Home Builders Association of Kitsap County has hundreds of member companies ready to guide you through any housing questions you have. Visit our website at www.kitsaphba.com or call us at 360-479-5778.
www.KitsapHBA.com
September 2011 Kitsap Peninsula Business Journal•KPBJ.com 13
Quadrant debuts new Liberty Hill development in Poulsbo
its loans, funds them and sells them on the secondary market. The company works with clients to research their estimated construction costs and complete bids, and can connect them with contractors as well as Realtors. Hannawacker said the program has been good for local contractors, who are hurting for work in the downturn, while also turning distressed properties around. The only other option for many of these properties is the FHA 203K, but it has a limit of $35,000 for the rehab portion — usually not enough money for the higherend homes that are in the range of $400,000 and up. Many investors have been taking advantage of the opportunity to buy rentals or homes they can “flip.” “Because the distressed properties are going well below market value, investors can buy them cheap, fix them and sell
at a good price,” Hannawacker said. “When we do the planning with them, we look at what it will take to make a quick sale on them.” Barry Bradley has financed several properties through the program. In the past he’s invested in rentals but recently, he flipped three houses after making most of the improvements himself as a general contractor. He invests $20,000 to $30,000 in fixing the foreclosed homes, then puts them back on the market. “It’s been working for us so we keep doing it,” he said. “We’re not making as much on them as previously but it’s still profitable.” Since the housing bubble burst, lending qualifications have been tightened across the board. One major change is strict documentation of income, and Legacy follows those requirements as well. Credit score criteria are also tighter, but Hannawacker said perspective clients who do not qualify because of their credit have the option of participating in a program that will get them back on track and qualified in a specific amount of time. He said since construction loans for existing properties have been discontinued after the housing market fell, many people are not aware there are still options for them. “There’s a flood of these properties now and the prices are low — demand is low and supply is high,” he said. “There’s a lot of them out there and there’s going to be more, the trend is not going away… This is such an opportunity people don’t realize they can do.”
HBA building retrofitted for energy efficiency in a demonstration project By Rodika Tollefson The Home Builders Association (HBA) of Kitsap County’s Bremerton headquarters — which is about 20 years old — has had an energy efficiency retrofit project under construction for the past couple of months. Among the improvements are a “cool roof,” which reflects the heat, a superhighefficiency hot-water heater, and a heatrecovery ventilation system, which recaptures temperatures from outgoing air. “What the cool roof does is cut down on heat absorption. In the summer, the building will not overheat,” said Walter Galitzki, owner of Sun Path Custom Construction Inc., who is the project manager on the retrofit. “It also contributes to the building’s longevity.” Backer rod — a closed-cell foam that is a newer product in the last few years used to fill gaps between joints — has been installed. Some improvement focused on water savings, such as new dual-flush toilets and aerators for water fixtures. In August, some of the work that still needed to be done included the replacement of light fixtures with T-8 fluorescents and a new, more energy-efficient door.
“The goal is to improve air efficiency,” said Galitzki, who is the chair of HBA’s Built Green program. “It’s a leaky building so we’re retrofitting it to make it less leaky.” In December 2009, the building had 14 air changes per hour (ACH), a measurement of how leaky a building is. The standard for new construction is 6, and the goal of the retrofit was to lower the number to at least 6 ACH. During a blower-door test (which is done to detect air leaks) in August, about half-way through construction, the ACH already measured at 6.5. A third and final blowerdoor test will be done at completion. The $114,000 project is being funded by a U.S. Department of Energy grant administered by Kitsap County. Because it is considered a county project, the retrofit had to go through the same competitive bidding process as any other project undertaken by the county. Part of the grant will go toward education, which will include open houses on October 23 and 29 (noon to 4 p.m.) and a virtual tour of the project that will be available on the HBA’s website (www.kitsaphba.org) and shown on computer monitors at the building. The HBA will also create informational
14 Kitsap Peninsula Business Journal•KPBJ.com September 2011
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Property For Sale Or Lease
Commercial CBA481338 $300,000 Location - Location! This 5021 SF investment building with office/retail areas, loading ramp and lay down areas is situated on 3/4 acre lot. Close to Bremerton Shipyard, located on St. Hwy 3 in Gorst area. Call Victor Targett, CCIM for details. 360-731-5550.
Bremerton #CBA453848 Commercial lease: 3,175 sq.ft. w/street frontage, ground floor retail/office space. $1,560/month incl. Taxes & garbage ($5.90/sf/yr). Kitchenette area.12 off street parking spaces. Tenant pays gas heat & electric. Mark Danielsen 360-692-6102/360-509-1299.
Commercial CBA486951 $125,000 Downtown Redevelopment in Bremerton offers one level Commercial retail/office space with 1,240 SF, 2 restrooms, 5 parking spaces plus on street parking in an area of downtown redevelopment. Victor Targett, CCIM 360-731-5550.
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Commercial CBA481178 $1,300,000 Great Classic brick building in the Heart of Downtown Bremerton. This 46 unit building is professionally managed, has a solid cash flow with a solid cap rate of 9+ %, and is a solid investment. Victor Targett, CCIM 360-731-5550.
resources for homeowners and businesses interested in energy efficiency. “The whole idea is to create a demonstration project — here’s a building that was built 20 years ago, and here’s some things we can do to make it more efficient,” Galitzki said. Teresa Osinski, executive vice president of Kitsap HBA, said the partnership with the county was important and the project was an opportunity to create a link between association members and the public’s interest in energy efficiency. With the HBA already a leader in green building through its nationally recognized Built Green program and through its Low Impact Devel opment initiative, the educational piece fits well within the HBA’s outreach efforts, she said. She said even before the project was finished, she could tell the difference in the level of comfort in the building. “It’s not only an economic benefit, there’s also a quality of life benefit, especially as more and more people are staying in their homes longer,” she said. Business went on as usual at the HBA off ices during the project, with no work disruption — an important aspect, Osinski said, for businesses that may be interested in a retrofit but are concerned about losing workdays. She added that many of the improvements done as part of the retrofit were one-time investments that will never have to be done again. Kitsap County’s total grant of $2.29 million received from the DOE in December 2009 was part of the stimulus funding. The Energy Efficiency and Conservation Block Grant also paid for improvement to the Kitsap County facilities, including the installation of a solar hot-water heater at the courthouse and lighting retrofits. Part of the money went toward a new program called RePower Kitsap (www.repowerkitsap.org), a countywide initiative with the goal of reducing energy consumption in 1,550
Kitsap County homes by 20 percent. A similar energy-conservation program called RePower was implemented on Bainbridge Island and was recently launched in Bremerton. On Bainbridge, more than 1,100 homes already received free energy-use assessments to identify potential improvements, with the goal of reaching 4,000 homes. The county hired four local contractors to perform the assessments in unincorporated areas. Homeowners have a small out-of-pocket expense and receive a report to help them prioritize energysaving opportunities, according to Autumn Salamack, Kitsap County’s resource conservation manager. Kitsap Credit Union is offering a low-interest loan to make those improvements, and there are additional incentives for homeowners. “Anybody in the county is welcome to take advantage of the assessment,” Salamack said. The loan program has income limits but it’s not restricted to low income, she added. Also under the grant, the county will work with local farmers to help them reduce fuel and energy use, and some grants will be available to the local food suppliers to implement those improvements. The program will kick off in the early fall. Salamack said the HBA partnership was important as part of this comprehensive effort. “The educational piece is critical to the success of the retrofit project, to make sure we’re reaching out to other business owners and homeowners, inspiring them and giving them the information, and connecting them with builders,” she said. “The primary purpose (of the grant) was to create jobs locally and reduce energy use, and help local government and individuals to save money while conserving energy,” she added. “It was instrumental in helping us move forward with some of the projects.”
Former Abbey Carpet Building for Sale
Bremerton #CBA494216 For Lease: Airport hanger w/office. Last used as industrial site. Lrg hangar doors on front side and roll-up door on back. Price includes everything except electric power, gas & phone. Bob Guardino & Joe Michelsen 360-692-6102/360-710-7844.
Commercial CBA468464 $300,000 9000 Sq Ft building in the Bremerton Charlestonarea. Available for lease at .30 per foot, loading ramp, good parking and centrally located. Call Victor Targett, CCIM 360-731-5550.
Poulsbo #CBA454043 2 very nice offices in Olympic Place 2. 972 sq.ft. & 1475 sq.ft. Each contains private offices. Great parking, elevator & competitive rents. Joe Michelsen 360-692-6102/360-509-4009.
Bremerton #CBA482516 Close in warehouse/industrial space. Competitive price. Includes office, high ceilings, and large roll up doors. Joe Michelsen 360-692-6102/360-509-4009.
Poulsbo #CBA493718 $550,000 Great office site, can build up to 24,000 sq.ft. in single or multiple building. Views and easy access to Hwy 305 & Poulsbo. Joe Michelsen 360-692-6102/360-509-4009.
• In Kitsap Lake business district • Versitile retail/office/warehouse • 10,460 SF building; Main level 8,510 SF, 1,950 SF Mezzanine, 2,300 SF Warehouse in rear • Zoned neighborhood business • Vacant and available $799,000 6525 Kitsap Way, Bremerton
Contact Victor Ulsh, CCIM Bradley Scott Commercial Real Estate
(360) 479-6900 • (800) 479-6903
www.bradleyscottinc.com
Fred Meyer pulls out of Gig Harbor project
Joe Gates Construction and UBuildIt offer kitchen and bath remodeling seminar Joe Gates Construction, Inc. and UBuildIt Poulsbo are presenting “Designing to Fit Your Budget,” a seminar for homeowners interested in upgrading, updating and adding value to their current homes. This informative, no obligation seminar will focus on how to prioritize, flow and function, newest trends, what to know about cabinet design, and countertop options. Creative Countertops will be hosting the event at its showroom at 22285 Stottlemeyer Rd. NE, in Poulsbo on Saturday, Sept. 17 from 10 a.m. to 12 p.m. All participants are entitled to a free site visit for a project evaluation (valued up to $200, limited to one site visit per household). Seating is limited; call in advance for reservations to (360) 779-8303.
other issues. However, many written comments that have come in to the planning commissions were also in favor. Planning commissioners were scheduled to vote on a recommendation on the amendment at a work session in August, but the decision will ultimately be made by Gig Harbor City Council. Boss said he anticipated the matter to be resolved by the city council in September after another public hearing. “We are hoping now that we have finally had a public hearing and an opportunity to discuss the facts of this request, that we will finally get the approval we have long awaited
for and will then be able to re-interest Fred Meyer in returning to this project as our anchor tenant,” he said. Regardless of whether the amendment is approved and whether Fred Meyer comes back, the project is moving forward, he said. Another anchor tenant already has an agreement for a 55,000-square-foot family entertainment facility. The name of the company has not been disclosed but Boss said it was a very upscale project. The developers have waited to submit plans until they know where on the site this facility would be built, which depends on whether the a 100,000-square-foot building is
approved. The total square footage of the proposed complex is 185,000. “Whether Fred Meyer returns or not, there is a huge construction advantage of being able to build a single building of 100,000 square feet as opposed to building two 50,000-square-foot buildings,” Boss said. “We have several other national junior anchor stores that are anxiously waiting for the outcome of the decision by the Gig Harbor City Council… The remainder of the project will be designed to accommodate our other interested retail tenants together with a couple of very anticipated national restaurants.”
September 2011 Kitsap Peninsula Business Journal•KPBJ.com 15
By Rodika Tollefson Developers of the Olympic Towne Center in West Gig Harbor plan to break ground on the retail complex this fall — but whether the original anchor tenant, Fred Meyer, will be on board remains to be seen. Earlier this summer, Fred Meyer withdrew its letter of intent with the developer, WWR Properties, to build a 100,000-square foot store on the site. “They have enjoyed a very successful relationship with this community and they did not want to be perceived as trying to ‘jam’ something into Gig Harbor that the community simply didn’t want,” said project representative Randy Boss, broker with Seattle Pacific Realty, Inc. Fred Meyer has a smaller, 65,000-squrefoot grocery store called Fred Meyer Marketplace, just a few miles from the proposed Olympic Towne Center. The retailer has been eyeing an expansion in Gig Harbor for many years — originally exploring the idea of building a new store just down the road, in the area now known as Uptown Gig Harbor. The Olympic Towne Center project has been in discussion for several years, with Fred Meyer’s original plan to build a 150,000square-foot retail center (standard stores are about 165,000). Current zoning only allows for maximum of 65,000-square-foot retail buildings and Fred Meyer later downsized its plans to 100,000. The zoning does allow for nonretail buildings such as hotels to be larger than 65,000 square feet. Fred Meyer has been waiting for more than two years for the text amendment to come before the Gig Harbor Planning Commission and in the meantime another Olympic Towne anchor, Kohl, migrated to a project located next door to Uptown that is now in construction and will include a new Safeway. “Unfortunately, the city of Gig Harbor delayed Fred Meyer’s expansion plans for a couple of years by not allowing for a public hearing on this retail building expansion request,” Boss said. The text amendment finally came up for a public hearing at the end of July but it has created opposition. Many residents testified they did not want another big retail box in town and were concerned about traffic and
Bremerton Cinema to begin construction A new movie theater project was expected to break ground by the first week of September — though, technically no dirt will be moved. Bremerton Cinema, a 10screen state-of-the-art facility, will be built on top of a two-story parking garage currently under construction by the city of Bremerton at Fourth and Park. The multimillion-dollar theatre project
has been in the works for a couple of years by a company called SEEfilm and it went into high gear recently. James Blissett, one of the four managing members of SEEfilm, is a veteran cinema designer. The principal of Seattle-based architectural firm, The Design Collective, Blissett has been designing movie theatres in smaller markets for 16 years, as well as coffee houses, retail
spaces and other projects. Bremerton Cinema will be SEEfilm’s first project and Blissett hopes the company will grow to five or so in the future. He said he’s dreamed of owning a theater for some time, and Bremerton was a good location because of all the revitalization efforts downtown. CINEMA, page 17
16 Kitsap Peninsula Business Journal•KPBJ.com September 2011
SHOPPE
www.KitsapHBA.com
from page 12 July, the company moved to its fifth location, on Ryen Street (off State Route 3), in the industrial building that was formerly home to Boxlight. The facility has been vacant for a couple of years, and The Window & Door Shoppe has taken about 7,500 square feet of space. “What’s great about this is that it has such a nice office layout and showroom, which we didn’t have before,” Murr said. The business has grown through the years to 16 employees at its peak four years ago. Currently, there are six employees and the business is a family affair — both Murr’s wife, Judy, and his daughter, Laura, work for the company, and his son-in-law helps out. The couple’s two sons have helped out in the past. Murr and his sales manager, Larry Wolske, have a combined total of 50 years of experience in the industry. When the building industry came to a near halt three years ago, The Window & Door Shoppe went from being a contractorbased business to focusing largely on the homeowners, who now provide about 90 percent of the customer base. “With the slump in the economy, we became a homeowner-based business and we’ve had to make changes in marketing and some serious decisions to capture that,” Murr said. For many years, the company had gross sales close to $3 million. Now, that number is under $2 million, which is a break-even point, Murr said — it’s an expensive business to run. “The real draw of this location is that we have room to grow. We have visibility from an extremely busy highway and we’re trying to find a way to aggressively market ourselves,” he said. His competitors, he said, are not so much other window or door companies but businesses that sell other products, such as carpet or countertops, because homeowners have a limited amount of money to spend on their homes. “We are the best in the area at what we do and our goal is to help the public find us,” he said. “…We have tremendous expertise and our knowledge is a huge advantage.”
WSI completes second community solar project Washington Solar Incentives (WSI) announced the completion of its second community solar project (CSP) on Kingston High School in Kingston. “Our first CSP took about a year but this one took only four months. That’s proof that community solar is an energy solution that works,” says Rick Lander, owner of WSI. The first CSP that Lander is referring to is WSI’s 75-kW CSP on Poulsbo Middle School. “The first took much longer because this type of energy model had never been done before, not in the state, not in the country. But now that we’ve got it figured out, we hope to duplicate community solar wherever we can,” Lander added.
WSI’s next project is a 50-kW CSP on Wolfle Elementary in Kingston. The North Kitsap School Board has approved the project, and work is in the early stages. WSI anticipates the project will be complete by late October. When asked about the muchpublicized Seattle City Light community solar project, which will be their first, Lander responded, “We’re both promoting clean, renewable energy, and I wish them great success. But we’re going about it in very different ways. WSI is a green business that is making solar installations good business. It’s that simple.”
The Kingston High School CSP has been installed in three sections atop two of the school’s buildings. It covers about 4,000 square feet and will generate about 47,000 kWhours per year. More information about WSI and CSPs can be found at www.wsisolar.com, or by calling (360) 301-1186.
Kitsap Habitat’s first rehab project ground breaking Habitat for Humanity of Kitsap County announces the ground breaking of its first rehab home project. Typically, Kitsap Habitat builds new homes for families that are accepted into its home ownership program. A generous family donated the home to Kitsap Habitat with the intention of rehabbing the home for a Habitat Family. This is a significant milestone for the local Habitat affiliate as it hopes to purse and rehab more homes in the future, and serve more families in the Kitsap County area. Habitat is also busy in other areas of the county. The Cornerstone Place project in East Bremerton off of Sylvan Way is nearing completion. This is Habitat’s second multifamily home development and consists of eleven homes. Its New Hope Development was completed in 2009 housing 18 families. Another single Habitat home is having the finishing touches put on in Suquamish. Other future projects include six new homes in Bay Vista with ground breaking scheduled for Summer/Fall. September 2011 Kitsap Peninsula Business Journal•KPBJ.com 17
CINEMA from page 16 “The area is underserved. The city is doing a good job to revitalize downtown and a cinema is a good way to add (to the efforts),” he said. Blissett is a strong believer that in smaller markets such as Bremerton, movie theaters can serve as an economic development tool. “…Movie theatres are the perfect catalyst for economic growth and urban development,” he wrote in an article published in the April 2010 edition of trade publication Film Journal International. “… They bring in large crowds that are necessary to support vibrant commerce, diverse businesses and interests, and establish the strong communities and cultures that once defined America’s small towns.” The goal for completion of the project is next May. SEEfilm expects to employ about 35 people originally. A builder had not been selected yet as of mid-August.
TRC employees receive Healthcare Construction certificate
Estes Builders celebrated its Grand Opening with a Real Estate Appreciation party on Wednesday, August 10 at their new location in Poulsbo. The event was hosted by Paula Ballesteros, Nell Clausen and Rick Gross of Estes Builders. Real Estate agents and affiliates from all over the county attended. Fresh seafood was served by Mystery Bay Seafood and complimentary chair massages were provided by Sonya Swokowski from Kingston Crossing Wellness Center. Estes Builders has been in business since 1989 and built just under 400 homes. They are a national award winning residential custom home builder. Their in-house design staff will help you design your home to fit your personality and lifestyle. Every custom home comes with a 6 year warranty.
Tim Ryan Construction, Inc. (TRC) employees; Dan Ryan, Kevin Ryan, Jim Beisley and Craig Frazier received the Healthcare Construction certificate from the ASHE (American Society for Healthcare Engineering) and the American Hospital Association (AHA). The course, which included online study and two days of classroom training, provides information and t echniques to help individuals work more effectively and efficiently in the health care construction environment. It provides education of the language of health care, as well as updating current trends in technology and design, while increasing ones understanding of code and compliance issues relevant to contractors working in a health care facility. Tim Ryan Construction has included healthcare constructi on as a specialty for over ten years and is dedicated to continually
Craig Frazier (left) & Kevin Ryan (right) at ASHE Conference improving its employee’s knowledge and skills of the latest techniques and trends needed to work in this modern health care environment. TRC has completed many heath care projects in the area including The South Kitsap Medical Campus, The Salmon Medical Center, Surgery Center of Silverdale, Achieve Eye & Laser Specialists, and several projects for The Doctors Clinic, Harrison Hospital, Advanced Medical Imaging as well as many individual medical and dental practitioners in the area. For more information, contact Dan Ryan at (360) 779-7667, Dan@TimRyanConstruction.com or visit www.TimRyanConstruction.com.
18 Kitsap Peninsula Business Journal•KPBJ.com September 2011
State Supreme Court punts on important development issues The State Supreme Court has issued a much-awaited decision in the Kittitas County and Central Washington Home Builders Association (CWHBA) v. Eastern Washington Growth Management Hearings Board case. Building Industry Association of Washington (BIAW) attorneys intervened in the case before the Growth Board back in 2008 on behalf of CWHBA and BIAW member Mitch Williams. The case was argued at the Supreme Court last October, and the long awaited decision came out just recently. Unfortunately, the Court said that the County had to re-write its Comprehensive Plan, and it failed to reach the issues that BIAW had appealed. BIAW had argued that the Growth Board had improperly invalidated the County’s Planned Unit Development and Cluster Development Regulations. The Court found that Kittitas County failed to adequately protect its rural character, and the County had to re-write its Plan before it could consider whether those development regulations are valid. Justices Jim Johnson and Richard Sanders dissented, finding that the County’s Plan and most of the development regulations do comply with the GMA. The bottom line is that the case is still far from over, and a long case has now become even longer. The County has to re-write its Plan, and send it back to the Growth Board for further consideration. Only then will the issues of the bright-line rule, cluster developments, and PUDs be considered. BIAW has said it will continue to weigh in as the case progresses.
September 2011 Edition
Events And Activities Thursday, September 1st Developers Council, 7:30 a.m. Monday, September 5th HBA CLOSED Wednesday, September 7th RSVP/Advanced Registration Deadline for 9/15 Classes Wednesday, September 7th Remodelers Council Mtg. 4:00 p.m. Tuesday, September 13th Fall Home Show Cmte Mtg., NOON Location TBD Thursday, September 15th Two 1/2 day courses: Lien Law (AM) & Construction Contracts (PM) RSVP & Prepayment Required Thursday, September 15th HBA Fall Social Party $10.00 per person RSVP to the HBA Location: McCloud’s East Bremerton Friday, September 16th REX Awards Entry DEADLINE, 5 p.m. Thursday, September 22nd SPECIAL DATE Executive Committee, 2:00 p.m. Government Affairs Cmte., 2:30 p.m. Board Meeting, 3:30 p.m. Sep. 30, Oct. 1 & Oct. 2nd Peninsula Home & Remodel Expo Visit: www.kitsaphba.com for all the details!
Earn your NAHB Certified Green Professional designation, become a RePower Kitsap Trade Ally, and gain credibility and a competitive edge. (Adapted from Joanne Theunissen NBN Online article, other NAHB content, and RePower Kitsap materials.)
The rules and regulations governing our industry are complicating our world, and the very survival of most builders and remodelers will hinge on their ability to comply and perform accordingly. The benefits of becoming certified in the various aspects of green building and remodeling — and becoming knowledgeable about technologies and building practices — are invaluable not only to their business, but to their clients as well. Consumers are becoming increasingly savvy and seeking builders or remodelers who are knowledgeable about green building practices. A Certified Green Professional (CGP) designation can help consumers identify the difference between a genuinely green home and the rest of the homes out there built to meet the basic building code. Courses are available through the Building Industry Association of Washington (BIAW) to earn this designation. Please visit their website at www.biaw.com for the details. Either way, consumers continue to visit the HBA office and website (www.kitsaphba.com) for information on member companies. Setting yourself apart and belonging to a professional trade association like the HBA will help to connect you with the consumers ready to make improvements to their home. While much of the national movement with regard to energy efficiency and green construction is new, we’ve been promoting it with our local Built Green® program for over 15 years. Since then, most of the state of Washington and now the nation have developed similar programs. The common theme among all these approaches is to enable builders and remodelers to design and execute a building project that follows understandable and recognizable procedures. It also provides builders new to green building a path that will enable them to understand the components that make a home green. Builders and remodelers who embrace the research and technologies involved in residential green building, will find today’s market an exciting time. In the next few weeks the exciting, annual Peninsula Home and Remodel Expo will be at the Kitsap County Fair Grounds. Consumers can come to the Expo (September 30, October 1, and October 2) for information on everything to do with the home and ideas for that remodel they’ve been considering (www.kitsaphba.com and watch the Kitsap Sun and the weekly papers for admission discount coupons). Of course there will be information about green construction, the new Washington State Energy Code, and ways to connect consumers to contractors and funding sources. An exciting local program available to consumers is the RePower Kitsap effort. This local program is for customers of PSE and Cascade Natural Gas Corporation who live in a single-family home of up to four units. Residents can receive an inhome assessment to determine the current efficiency level of their home and receive cash-back incentives for qualifying energy-efficiency improvements. Incentives are offered at varying amounts and can be combined, putting even more cash in your pocket. In addition to standard incentives, available federal tax credits can also offset your out-of-pocket costs (some federal tax credits continue to be available through December 2011 and others through 2016). To help, Kitsap Credit Union offers three loan options through their Energy Efficiency Loan Program (www.repowerkitsap.org). Contractors and consumers can get all the details on the RePower Kitsap program at www.repowerkitsap.org. There is a lot of opportunity in the “Green” movement for both contractors and their clients. Connecting all the pieces has never been easier. For more information on any of this information please contact the HBA office for assistance.
2011 OFFICERS President . . . . . . . . . . . . . . . Justin Ingalls, RCS First Vice President . . Wayne Keffer, CGR, CAPS Second Vice President . . . . . . . . Robert Baglio Treasurer . . . . . . . . . . . . . . Randy Biegenwald Secretary . . . . . . . . . . . . . . Dee Coppola, CGA Immediate Past President . . Ron Perkerewicz
2011 BUILDER & ASSOC. DIRECTORS Derek Caldwell • Karla Cook • John Leage Robert Lubowicki • Judy Mentor Eagleson Jim Way, CGB • Jason Galbreath • Kevin Hancock Leslie Peterson, CGA • Shawnee Spencer
2011 STATE DIRECTORS John Armstrong • Robert Baglio • Derek Caldwell Lary Coppola • Walter Galitzki • Brent Marmon Gale Culbert, CGR, CGB, GMB Wayne Keffer, CGR, CAPS • Greg Livdahl
2011 ALTERNATE STATE DIRECTOR Robert Coultas • Rick Courson
LIFE STATE DIRECTORS Bill Parnell
2011 NATIONAL DIRECTORS Robert Baglio • Justin Ingalls, RCS Wayne Keffer, CGR, CAPS
2011 ALTERNATE NATNL. DIRECTORS David Smith • Mikael Brown • Jeff Coombe
LIFE DIRECTORS Rick Courson • Jim Smalley • Bob Helm Bill Parnell • Larry Ward John Schufreider • Dori Shobert
2011 COUNCIL & CHAIRS Build a Better Christmas. . . Randy Biegenwald Built Green . . . . . . . . . . . . . . . . Walter Galitzki By Laws & Nominations . . . Ron Perkerewicz Developers Council . . . . . . . . . . . . . Norm Olson Golf Classic . . . . . . . . . . . . . Shawnee Spencer Govt. Affairs Cmte. . . Wayne R. Keffer CGR, CAPS 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 . . . . . . . . . . . Tom Taylor
HBA STAFF Executive Vice President . . . Teresa Osinski, CGP tosinski@kitsaphba.com Administrative Coordinator . . . . . . . . . . . TBD 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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Thursday, October 6th, 11:30 a.m. HBA Annual Gen. Membership Luncheon. All HBA Members encouraged to attend. RSVP to HBA ($20/person)
Now is the time to join the Built Green® program
September 2011 Edition
This past month brought yet even more interesting Justin opportunities to our already Ingalls struggling economy. The debate in the Federal Kitsap Trident Homes Government raising the debt 2011 President ceiling had some obvious impacts on the continuing lack of consumer confidence. With a deal finally being reached between the battling political parties, we then watched the Dow Jones experience a sharp drop as a result of a slip in the US Credit Rating. This was followed by a bounce back after the Federal Reserve announced interest rates would remain at near zero until 2013. Does it feel sometimes that our puppet master Government has too much fun pulling the strings and watching us dance and wave our arms? According to information provided by the National Association of Home Builders, builders’ confidence also remains low for newly built, single family homes. It goes on to say we continue to confront the same challenges over the past year, with the major one being the large inventory of distressed homes on the market. On a local level, 17% of our markets listings and about 24% of closed sales are distressed properties. While the buying and building conditions are favorable with regards to price, rates and selections, there’s still a question of what the f uture will bring. On a positive note, NAHB has also released a report predicting how states will recover by the 4th quarter of 2012 and Washington is one of five expected to return to 82% of normal, or better, levels or normal homebuilding production. The other states included Montana, Texas, Pennsylvania and Hawaii. As a result of the low interest rates there continues to be interest in refinancing one’s home. There have been recent reports in our local paper expressing this same claim. We continue to see rates in the 4’s for 30 year fixed loans and into the 3’s for 15 year fixed. There are many factors to consider including what your current rates are, how long you plan to be in you home and so on, but contacting one of our member lenders could be very advantageous to you. Another avenue you may consider researching, is the partnership with the Kitsap Credit Union, Kitsap County, the City of Bremerton, and the City of Bainbridge Island. They have teamed up together to create an Energy Efficient Loan Program to help homeowners and small businesses make cost savings improvements. To obtain more information, or check if you are eligible, take a look on their websites. The article on the first page of the newsletter addresses it briefly as well. Many members of the Home Builder ’s Association of Kitsap County have been working overtime on your behalf with the County and other local organizations. While the list of volunteers is long and there’s too much detail to get into each item individually, here’s some issues to keep your eye on locally. Title 16, Footnote 48, Title 21, Fire Flow, Code Enforcement and the Shorelines Master Program are all currently being reviewed and will have impacts on everyone in some form. All of these stem from different areas of local and state governments and associations. While updating some of these items are necessary and outdated, others might make more sense to table and address at a later date when it can be tied into a more comprehensive project. Regardless, I want to thank those who have spent countless hours working for our association and towards a common goal. If you have questions or wish to become involved on any of the above please contact us for more information. Finally the retro fit at the Home Builder ’s office is all wrapped up. Stop by and see the upgrades, how we are running more efficiently and how doing these types of projects at your home or office can save on your monthly bills.
Just like in your businesses, the HBA is looking at how to increase revenue and decrease expenses. In the last 24 months, CGP the HBA has cut many expenses — most notably staffing. There Executive was a time when we had 6 full Vice President time staff here. Currently we have two and will be refilling one vacancy in the next few weeks. We continue to look for ways to increase our revenue from existing and new sources. Obviously, the support of the industry through membership is important too. Membership matters both as a function of revenue, but also, and more importantly as an indicator of mission success. As is true with almost all species; there is safety in numbers. The species that is the “contractor/construction industry professional” also benefits from this same principle. While you compete with each other in some cases, clearly work together in others, and sometimes co-exist with little interaction; you all have much in common. In fact you rely on each other in many ways you may not even think about. One of those commonalities for some of you is your shared support and membership in the HBA. For others it is the benefit of the HBA’s advocacy on the part of the whole industry, whether all participate in membership or not. Though we have cut our staff to half of what it once was, and we have seen a reduction in some of our revenue sources, we continue to be the one consistent, active, and clear voice at area meetings of decision makers on your behalf. Not only does membership help to support that effort financially, but also, and just as importantly, it reminds decision makers we are the trade association in Kitsap County and we represent hundreds of businesses. By extension, businesses are made up of employees and in turn — voters. It is that collective strength — i.e., that “safety in numbers” that the HBA provides which allows us to represent the industry. Your support of that dynamic matters to your company and to the future of the construction industry in Kitsap County. For about $1.30 per day, members receive local, state and national support and become a part of the collective voice of this association, the Building Industry Association of Washington, and the National Association of Home Builders as we try to refocus attention onto the economy. I thank those that are members and thank those in advance who will join. Please contact the HBA, or me directly, if there is anything you think the HBA can do for you.
Teresa Osinski
BOLT IT – BRACE IT – DO IT! When the ground starts shaking, you’ll be glad you took part in this effort to get your home tied-down to its foundation. The HBA is working in cooperation with the Kitsap County Department of Emergency Management, the Olympic Peninsula Chapter ICC, area building departments, and Simpson StrongTie to bring awareness, education, and action to the importance of securing your home before there is an earthquake. FREE Training will be provided\ as follows: September 24th, Norm Dicks Government Center (6th and Pacific) downtown Bremerton • Session 1: For the Professional Contractor - 9AM to Noon • Session 2: For Homeowners - 1pm to 4pm ADVANCED REGISTRATION to: Emergency Management at 360-3075870 or dem@kitsapdem.org is required.
September 2011 Edition
Government Affairs Committee Wayne R. Keffer WRK Construction, Inc. 2011 Chair Lead Rule Compliance Resources — Some U.S. Environmental Protection Agency regional offices have begun to inspect firms and take action to enforce the Lead: Renovation, Repair, and Painting (RRP) rule. In Washington, the Department of Commerce has been given authority to enforce the lead rules on behalf of the EPA and the information provided below about EPA inspectors is likely the same for Washington State inspectors. Many Kitsap area professional remodelers are up to speed and became properly certified many months ago. Newer firms may not be fully aware of the requirements and it is imperative you catch up. Consumers may be even less aware of the rule’s implications and as professionals it is important we bring them up to date early in the process. In a nutshell: Remodelers working in pre-1978 homes must follow the EPA rule or risk fines and litigation (www.epa.gov/lead). Be Aware and Be Ready! EPA inspectors are conducting inspections on all types contractors (remodelers, window replacement firms, HVAC installers, insulation installers, etc.) working in both owner-occupied and rental housing built before 1978. Know what EPA inspectors are looking for: EPA inspectors are looking for documentation that these contractors are complying with both the Pre-Renovation Disclosure Rule and the Lead:
Renovation, Repair, and Painting Rule. Contractors must maintain records demonstrating compliance for three years. What documents must I have for an EPA inspector as a contractor? • Signed copies (by the home owner/tenant) of EPA’s Pre-Renovation Disclosure Form that affirms that you have given them the prerenovation education in the form of the EPA’s Renovate Right Pamphlet. • Proof of two certifications. One: that the company employs an EPA “Certified Renovator.” Two: that your company is an EPA “Certified Firm.” • A copy of the Certified Renovator’s Report for EACH JOB subject to the LRRP Rule. This includes information on any EPA-Approved PreRenovation Test Kits used only by the “Certified Renovator” to determine applicability of the LRRP Rule and the Sample Record Keeping Checklist. Download, from the NAHB website (www.nahb.org/leadpaint) the resources below to prepare your company and comply with the rule’s requirements: • Pre-Renovation Disclosure Form. Customers sign this form to confirm receipt of the Renovate Right pre-renovation education pamphlet. • Renovate Right Pamphlet. The EPA’s prerenovation pamphlet for educating customers about the requirements of the lead paint rule. • Information on Becoming an EPA Certified Renovator and Certified Firm. Explanation and directions for completing both certifications required by EPA under the lead rule. In Washington you get this now through the Department of Commerce at www.commerce.wa.gov.
• Sample Record Keeping Checklist. This document can be used to fulfill the record for the Certified Renovator’s report on a job under the lead paint rule. It tracks every step of the rule’s requirements, including leadsafe work practices. • Lead Paint Compliance Checklist Sample. This is a one-page checklist for tracking a lead paint job under the rule, from pre-renovation education to sharing the job records with the customer on completion of the work. • Sample Contract Language for Lead Paint Renovation. These documents provide sample contract language and customer notifications under the lead rule. They can be customized for your company and tailored by your attorney to meet your firm’s needs. • Renovation Notice and Record of Tenant Notification. This document provides sample notices for customers or tenants where work is being done under the lead rule. • EPA’s Small Entity Compliance Guide to Lead Rule. The EPA created this document for guidance to contractors working under the lead rule, including sample forms and details on the rule’s requirements. NOTE: Under the most recent rule amendment you must inform clients of the EPA’s recommendation for post remodeling lead dust testing. To do this you need to get updated copies of the Renovate Right brochure or you must print out the new page 10, “For Property Owner: After the Work is Done” and insert it in the Renovate Right brochure you are delivering to your customers. If work is being done in a part of a multifamily complex special common area posting requirements are in effect.
Peninsula Home & Remodel Expo September 30, October 1 & 2 It’s time again to “Reinvest in Your Dreams!” Vendors are welcome to submit applications to participate in this fall’s best Expo focused on everything you could want and need for a comfortable home. Booths are reasonably priced and on sale now.
Contact the HBA Expo Director, Toni Probert at 360-479-5778 for information on how you can become a part the Peninsula Home & Remodel Expo. Event dates are September 30, and October 1 & 2. Admission ticket prices are kept affordable to give our
vendors the best opportunity to reach many Kitsap area residents. Our free “How to Seminars” and other attractions make the Peninsula Home & Remodel Expo a great investment for your business. Don’t delay, this Expo sells out quickly.
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September 2011 Edition
Thank You Renewing Members Over 30 Years Map Ltd (32) Over 25 Years Fred Hill Materials (28) Olympic Glass (28)
Over 15 Years Nicholson Drilling Inc Hutch-Con Construction Inc Kitsap Roofing Inc Timberland Bank
Creekside Cabinet & Design Inc Rodgers Landscaping Wayne R Keffer Construction Inc Absolute Concrete Works LLC Paratransit Systems International
25-Year Anniversary Paulson Custom Builders Inc
15 Year Anniversary Kitsap Credit Union
Over 2 Years Liberty Bay Bank of Washington Cleaver Construction Inc Amalani LLC
Over 20 Years Arborview Construction Inc A-1 Door Service Inc 20 Year Anniversary Jankowski Construction Inc Dahl Glass Danson’s Landscaping Inc Lovely Construction The Reijnen Company
Over 10 Years Ritzman Construction LLC Over 5 Years The BJC Group Inc Bird Electric Coyote Hollow Woodworks Inc Housing Kitsap JCM Property Management DreamMaker Bath and Kitchen
FIRST YEAR RENEWALS The Legacy Group Choice Construction
REMODELERS! Residential or Commercial — BIG or small Kitsap HBA Remodelers Council Remodeling Excellence Awards IMPORTANT DATE: Entry Deadline is SEPTEMBER 16, 5 p.m. Basic Requirements: 1) Must be an HBA member 2) Must be a member of the Kitsap HBA Remodelers Council or submit membership payment with REX entry ($40). 3) Entries must have been completed within the last 14 months. 4) Full payment is required at time of submittal ($100 for first entry; $50 for each subsequent entry) 5) Strict adherence to the photo limit is required. Entrants submitting more photos than allowed will be disqualified.
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 . . . . . . . . . . . . . . . . . . . . . . . . . . 266 Dee Coppola . . . . . . . . . . . . . . . . . . . . . . . . 243.5 Kerry Chamberlin . . . . . . . . . . . . . . . . . . . . . 237 Dale Armstrong. . . . . . . . . . . . . . . . . . . . . . 235.5 Bill Parnell . . . . . . . . . . . . . . . . . . . . . . . . . . 218.5 Michael Hancock . . . . . . . . . . . . . . . . . . . . 187.5 Andy Mueller . . . . . . . . . . . . . . . . . . . . . . . . . 185 Douglas Woodside . . . . . . . . . . . . . . . . . . . . . 182 Kevin Parnell . . . . . . . . . . . . . . . . . . . . . . . . . 176 Bob Helm . . . . . . . . . . . . . . . . . . . . . . . . . . . 175.5 John Armstrong. . . . . . . . . . . . . . . . . . . . . 150.75 Rick Courson . . . . . . . . . . . . . . . . . . . . . . . . . 149 James Ingalls . . . . . . . . . . . . . . . . . . . . . . . . . . 144 Randy Biegenwald . . . . . . . . . . . . . . . . . . . 126.5 Greg Livdahl. . . . . . . . . . . . . . . . . . . . . . . . . . . 95 Robert Lubowicki . . . . . . . . . . . . . . . . . . . . . 91.5 David Smith . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 Michael Brown . . . . . . . . . . . . . . . . . . . . . . . 85.5 Larry Ward. . . . . . . . . . . . . . . . . . . . . . . . . . . 82.5 Jeff Coombe . . . . . . . . . . . . . . . . . . . . . . . . . . 77.5 Dori Shobert . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Lary Coppola. . . . . . . . . . . . . . . . . . . . . . . . . 54.5 Rick Cadwell. . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Joanne Lockwood . . . . . . . . . . . . . . . . . . . . . 42.5 Charlie Mackall . . . . . . . . . . . . . . . . . . . . . . . . 42 Donna Milner . . . . . . . . . . . . . . . . . . . . . . . . 41.5 Cheryl Gallup . . . . . . . . . . . . . . . . . . . . . . . . 39.5 Scott Henden . . . . . . . . . . . . . . . . . . . . . . . . . 38.5 Ron Perkerewicz . . . . . . . . . . . . . . . . . . . . . . 37.5 Larry Elfendahl . . . . . . . . . . . . . . . . . . . . . . . 35.5 Justin Ingalls . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Wayne Keffer . . . . . . . . . . . . . . . . . . . . . . . . 33.75 Steve Crabb . . . . . . . . . . . . . . . . . . . . . . . . . . 29.5 Steve Brett . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Barry Keenan . . . . . . . . . . . . . . . . . . . . . . . . . . 26
SPIKES CREDITS Brent Marmon . . . . . . . . . . . . . . . . . . . . . . . . . 24 Dave Revis . . . . . . . . . . . . . . . . . . . . . . . . . . 23.75 Jeff Swan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.5 Robert Coultas. . . . . . . . . . . . . . . . . . . . . . . . 23.5 AnnaLee Todd . . . . . . . . . . . . . . . . . . . . . . . . . 15 Joe Gates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.5 Darren Devitt . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 SPIKE CANDIDATES CREDITS Robert Baglio . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Walter Galitzki. . . . . . . . . . . . . . . . . . . . . . . . . 3.5 Brad Reid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Corey Watson . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Derek Caldwell. . . . . . . . . . . . . . . . . . . . . . . . . . 3 Frank Murr . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Jim Heins. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Judy Granlee-Gates . . . . . . . . . . . . . . . . . . . 2.75 David Godbolt . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Jon Brenton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Karen Alyea . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Len Mallory . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Robert Simonoff . . . . . . . . . . . . . . . . . . . . . . . . . 2 Ted Bowman . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Al Timm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 Brett Warner . . . . . . . . . . . . . . . . . . . . . . . . . . 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 Daniel Ryan . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 Bill Carter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Jim Ullrich . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
These annual awards are prestigious and coveted. There are a huge variety of categories that span the residential and commercial field in numerous price levels. Packets will be available in July and all HBA members in the remodeling field are encouraged to participate. Details on the presentation of awards will come later. GOOD luck every one!
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When the going gets tough: Are you and your business resilient?
K.C.H.S. Museum resets book signing event The book signing event at the Kitsap County Historical Society Museum originally scheduled for Aug. 30 has been postponed to Oct. 7 from 5:30 – 7:30 p.m. Local author Debbie Macomber will be signing her latest book, 1105 Yakima Street. Copies of the book will be available for purchase at the museum. This event is a fundraiser for the historical society and is free to the public. 1105 Yakima Street is the eleventh book in the popular Cedar Cove series which started more than a decade ago with 16 Lighthouse Road. The community of Cedar Cove is loosely based on Port Orchard. The Kitsap History Museum is located at 280 Fourth Street in downtown Bremerton, Washington. Telephone: (360) 479-6226. Email: info@kitsaphistory.org. Website: www.kitsaphistory.org.
side, Bradley needed to hone his game to completely trust it. That takes hours and hours of practice time. Do you completely trust that your organization is prepared to respond to adversity? If not, that’s on you. Preparation, planning, and practice (see last month’s column) are necessary components to ensure that from a procedural standpoint, your business can be resilient. The first step is making sure you have your “A game.” This means knowing yourself, communicating expectations to your “team,” and having the humility and self-confidence to move forward boldly in the face of a challenge. This only comes from experience scraping your knee a few times. Learning from your mistakes and being able to respond and lead in crisis are essential for any leader of any sized business. Stress is the other major component in the concept of resiliency. In fact, it may be the most crucial. How we respond under pressure will reveal how well prepared we are and what level of confidence we possess. Stress has the ability to make us tense up; freak out; become depressed; lose our cool; go into a shell; make bad decisions; and say dumb things in the heat of the moment. In hindsight, we get to then say, “I wish I had…” If you’re the leader, all eyes are on you. Your demeanor, your words, and your actions will be scrutinized and evaluated by all involved. Just like preparing your organization for resiliency, you must
mentally prepare yourself. Golfers simulate pressure and work with coaches to prepare for stress. What do you do? If you’ve not prepared yourself to tackle stress, then you’re a triple-bogey followed by two double-bogeys waiting to happen! Take time to simulate stress; practice your response; and use a coach to develop your mental game. Keegan Bradley was resilient because he practiced his game and his mindset. It earned him a championship. Honestly look at your “game” and determine if you’re prepared to respond like Bradley to the next triple-bogey you encounter.
(Editors note: Dan Weedin is a Poulsbo-based 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 32 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.)
September 2011 Kitsap Peninsula Business Journal•KPBJ.com 23
By Dan Weedin The game of golf presents excellent life lessons. In last month’s PGA Championship, a young man by the name of Keegan Bradley made history. He became the third player to ever win a major championship in his very first attempt. The bigger news to me however, was his admirable example of resiliency. The 25-year old rookie was one-stroke back on the 15th hole when he committed the cardinal sin. He chipped his ball in the water and carded a triple-bogey, essentially eliminating him from contention (Note that this is a cardinal sin for the pros, just another day on the course for me). With only three holes to play, he found himself down by 5 strokes. Resiliency defined is the ability to “bounce back” from adversity. Bradley did just that by making birdie on the next two holes and scoring par the very difficult 18th hole. Behind him, the leader faltered and by the time dust had settled, they ended up tied and headed for a 3-hole playoff, where Bradley eventually prevailed. I’ve played golf for over 30 years, including competitively in high school. One of my challenges has always been to remain focused after a bad shot or bad hole. Invariably, the bad play would carry over for the next several holes making them “collateral damage” and frustrating me. Fortunately for Keegan Bradley, he had a different mindset. How resilient are you in business and in life? You may challenge me and say that my example is about a game, and not “real life.” Not quite. For Keegan Bradley and his fellow competitors, this is their boardroom. A triple-bogey for them on the 15th hole of a major is akin to losing a major account or stumbling on an important project. The concept of “resiliency” transcends sport and life and becomes one of mental toughness. When you’re going gets tough, are you mentally prepared to get going? Business resiliency takes both practical and mental practice. From the practical
Apple iPhone 5 design checklist: 10 most likely new features
24 Kitsap Peninsula Business Journal•KPBJ.com September 2011
From eWeek In the mobile world, there’s no more important smartphone than the iPhone. Apple’s handset is wildly popular in every country in which it’s available. And each year, when new versions of the device are launched, people around the globe line up to be the first to get their hands on it. But so far this year, those people haven’t been able to get hands on a new iPhone model. Now, there is rampant speculation that Apple
might wait a couple more months to finally offer up the next version of its smartphone. Whenever Apple finally gets around to launching a new smartphone, consumers will be quite interested to know what the device will come with. Will the next iPhone be a major upgrade over the iPhone 4, or will it simply be an evolutionary update? Will it come with a bigger screen or the same 3.5-inch option owners have grown accustomed to over the years? So far, Apple
has been tight-lipped. But the rumor mill hasn’t been so silent. In fact, a host of reports have been cropping up, claiming Apple will be delivering several key improvements to the device. However, while some of those improvements make sense, others do not. Thus, it’s important for everyone to keep a level head when assessing those reports. The following slides will help folks do just that. Instead of listing every possible update that has been
talked about, the following items are those that are most likely to come to the iPhone 5. A Faster Processor If there’s anything that the iPhone 5 will come with, it’s a faster processor. Right now, the iPhone 4 is being trumped by competitors that feature dual-core processors. The iPhone 5 will likely come with the same processor as that in the iPad 2, making it one of the faster options on store shelves when it launches. A Bigger Display At this point, there’s little debating that Apple’s next iPhone will come with a bigger display. The iPhone 4’s top competitors have 4.3-inch screens, easily overshadowing the 3.5-inch option on Apple’s handset. With the iPhone 5, Apple will likely deliver a larger display (if not the edge-to-edge option that’s made its way through the rumor mill) to help its handset compete more effectively against devices from HTC, Motorola and others. Apple’s iOS5 When Apple unveiled iOS 5 at the Worldwide Developers Conference in June, the company said that it would be making its way to the iPhone 4 later this year. However, there’s a good chance that the platform will also be made available on the iPhone 5 when that device launches this fall. An iPhone 5 with iOS 4 simply makes no sense. Near Field Communication Looking ahead, near-field communication seems to be a hot issue in the mobile marketplace. Google earlier this year unveiled a new Wallet service that will allow users to pay for products from their handsets. The company promises integration on more Android devices going forward. Although that market is still in its infancy, Apple would be smart to deliver a payment service of its own now before Google’s gets too far ahead. And Steve Jobs knows that. More Storage Digital media is becoming more important by the day. Thanks to improved broadband adoption, video content is becoming more important. Considering how important digital media has always been to Apple, expect the iPhone 5 to come with more storage. A 64GB version seems like a safe bet, but a 128GB option is also possible. An Antenna Fix One of the complaints most consumers have with the iPhone 4 is that when it’s held in a “death grip,” it loses some signal quality. With the iPhone 5, expect Apple to fix that problem. Apple has always been a company that likes to address issues quickly. That shouldn’t be any different this time around. Improved Graphical Capabilities When mobile games were first made available in Apple’s App Store, they were somewhat simple. level. Apple iPhone5, page 25
APPLE IPHONE 5 from page24 But over time, as the iPhone has improved, developers have pushed the envelope with the quality of their games. Now, games have become integral to the iPhone experience. In the iPhone 5, look for Apple to capitalize on that with improved graphical components that will help developers take their titles to a new level. Same Old Price Tag It might not have anything to do with the iPhone’s features, but expect Apple’s next handset to be priced at $199 and $299 with two-year agreements. It’s a strategy that Apple has used in the past. Rather than charge more for its devices, it has charged the same price to make people see more value in them. The result has been strong sales. An Improved Camera Apple’s iPhone 4 has been criticized for its built-in rear-facing camera. Critics say that since it’s only 5 megapixels and the lens isn’t so great, better options can be found elsewhere. Apple, a company that loves to offer the best of everything, will undoubtedly address that in the iPhone 5. Expect the company’s next device to come with a vastly improved camera. 4G This might be the long shot of this group, but 4G connectivity is possibly going to make its way to the iPhone 5. Looking around the market, there are several devices that are now shipping with 4G because their makers realize that the future is in the ultra-high-speed option.
“Keeping up with Technology” workshop about LinkedIn for business
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Frank J. Kenny, owner of Frank J. Kenny Speaks, Writes, Coaches, LLC, recently served as a faculty member at Institute for Organization Management (Institute), an intensive week-long nonprofit leadership training program held in July at Loyola Marymount University in Los Angelis, Calif. Since 1921, the Institute has attracted association and chamber professionals from across the country to its five university sites. During the four-years, most Institute participants attend the one-week sessions at the same site, building valuable relationships with others in the industry. Through a combination of required courses and electives, Institute participants are able to enhance their own organizational management skills and add new fuel to their organizations, making them run more efficiently and effectively. Institute’s faculty members come from varied backgrounds within the nonprofit industry, all with a commitment to providing the best education for chamber and association professionals. The faculty plays a pivotal role throughout the week, providing instruction and sharing resources in targeted courses such as Creating a Digital Strategy and Technology Tools and Trends. Many Institute faculty members continue to offer their guidance to students and their organizations throughout the year. “Institute’s faculty members are truly the experts in their respective fields,” said Raymond P. Towle, the U.S. Chamber’s vice president of Institute for Organization Management. “These individuals each bring a wealth of knowledge and experience to the Institute classroom that is unparalleled in nonprofit management.”
WSJ: Pad 3 rumored to be released in early 2012 Apple will release the iPad 3 in early 2012, according to the Wall Street Journal's unnamed sources. Apple will apparently manufacture its first iPad 3 units in October, with an eye toward a launch early next year, according to the unnamed sources. If verified, that would mean Apple is sticking with the release schedule it established with previous iPad generations. The original iPad launched in April 2010 (having been unveiled that January), while the iPad 2 made its debut in March 2011. The Aug. 19 report adds that the next iPad “is expected to feature a high resolution display — 2048 by 1536 compared with 1024 by 768 in the iPad 2.” The screen will apparently retain the same 9.7-inch size of previous editions. That would align with rumors from earlier this summer that the next iPad will feature a high-resolution “Retina Display,” which started when a tipster included screenshots of some extralarge images in Apple’s upcoming iOS 5 mobile operating system.
The 3/50 Project launches LookLocal iPhone app The first-of-its-kind app searches for independent merchants nationwide Hundreds of communities publish directories or websites listing local merchants in the area, but few residents actually tote that material with them on a daily basis. The 3/50 Project aims to repair that disconnect with LookLocal, the first iPhone app to showcase “mom and pop” businesses throughout North America. “The goal is to put locally owned, independent brick and mortar merchants right in your hand, regardless of where you are at the moment,” explains Cinda Baxter, founder of the 3/50 Project. “No one remembers to grab a brochure that lists businesses when they walk out the door, but who leaves home without a phone?” “Independent” plays the central role here: Merchants who have no outside corporate support of any kind – the same businesses who return the largest percentage of their annual revenue to the local economy, according to a 2009 Civic Economics Study. As a free download for iPhone users, LookLocal features “independent brick and mortar” merchants, locating those closest to where the user stands, regardless of whether they’re at home or on the road – a feature no regional or city specific app can offer. Category shortcuts labeled Shop, Eat, Sip, Stay, Services, and Play allow users to immediately fine tune their results; click-to-call, mapping, and social media capabilities offer immediate connection to both businesses and their friends in a single tap. Marrying the 3/50 Project’s national database (currently more than 23,000 listings) with a smart phone app was no accident, according to Baxter. “I travel for a living, speaking about the Project from coast to coast. That meant needing to visit the website, look up supporters, and then print out a list of businesses before I left the house. Sometimes, I remembered to do that, but sometimes, I was rushing out the door, later landing in a location with no clue where to eat or where to shop.” LookLocal provides the missing link. Inclusion in LookLocal is free and automatic for independent brick and mortar merchants who sign up as supporters on The350Project.net. Businesses that prefer more “oomph” in their profiles have the option of upgrading to an Enhanced listing, which includes their social media links, website links, and photographs, making it even easier to connect with consumers on a personal level. Versions for iPad and Android are currently in development, thus covering the three largest iOS pipelines to mobile consumers. “Its free to be in the app, free to download the app – this is a win/win for independent merchants, regardless of where they’re located,” according to Baxter. “No way are we stopping until everyone can find the little guy down the street.”
“Partners in Business” “NW Commnet established AMI’s WAM link between our new Poulsbo office and our other 3 locations. “They were prompt and went above and beyond in troubleshooting and solving our issues. “I would absolutely recommend the services of NW Commnet to other businesses needing their wide range of services.” — Kenneth Matthews, Network Engineer Advanced Medical Imaging
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The North Kitsap Friends of the Library are hosting a free workshop about “LinkedIn for Business Use: Optimizing Your LinkedIn Presence.” The presentation will be made by Darin Hartley, author of 10 Steps to Successful Social Networking for Business. The event will take place on Tuesday, Sept. 20 from 6:30 to 8 p.m. at the Poulsbo Public Library, 700 NE Lincoln Rd. Hartley will explain what LinkedIn can do for your business. Beyond sharing a resume, LinkedIn can be used for making new contacts in industry, recruiting, sales, research, and trending news. LinkedIn can be used as a way stay connected with old and new business professionals and keeping current with latest promotions, job changes, and business endeavors. Hartley will show tips, tricks, and ways to optimize LinkedIn, as well as showing “best practice” examples of LinkedIn for both small and large organizations as well as individuals. For more information call the Poulsbo Library at (360) 779-2915.
Kenny tapped as faculty member by U.S. Chamber’s Institute for Organization Management
Thompson named new KCU Silverdale branch manager
Brush up on your investment education By Brian George You don?t need to have young children to be keenly aware that we?ve reached that ?backto-school? time of year. Whether you?re shopping for school supplies or not, you may want to take a cue from this season to think about getting a little more education yourself —specifically, investment education. Many people find the language of investing to be confusing, but with a little effort, you can learn important concepts and principles. And the more you know about investing, the better off you’ll be because, in the investment world as in other areas of life, knowledge is power. So take just a few minutes to read more on these basic investment concepts: Growth — You purchase some types of investments with the hope that their value will rise over time. Of course, over the short term, the prices of growth-oriented investments can and will fluctuate,
sometimes substantially, and the preservation of your principal is not guaranteed.
investor, you may be willing to accept greater risk in exchange for potentially higher returns, whereas if you’re a conservative investor, you’ll take lower returns if you can receive greater preservation of principal.
Income — When you invest in incomeoriented or fixed-income vehicles, you receive income in the form of When most people interest payments. The market value of fixed-income talk about investment investments can also fluctuate, risk, they are usually but if you hold them until referring to the maturity, you can generally possibility of losing expect to receive the original money, and that is principal value.
Time horizon — Your investment strategy will be partially based on your time horizon — the number of years in which you plan to invest. Your time horizon will likely stretch into your indeed an ever- retirement years.
present risk. Investment Risk — When Diversification — Diversification is an most people talk about investment risk, important factor in investment success. By they are usually referring to the possibility spreading your investment dollars among of losing money, and that is indeed an everan array of investment vehicles, you can present risk. But all investments carry some help reduce the impact of volatility on your type of risk. When you invest in fixedportfolio, although diversification, by itself, income investments, for example, you may can’t guarantee a profit or protect against incur interest rate risk — the risk that the loss. value of your investment will drop if interest rates rise. Or you may encounter purchasing While far from exhaustive, this list of power risk — the risk that your rate of investment terms can help you gain a return may not keep up with inflation. clearer understanding of the “nuts and bolts” of investing — and perhaps Risk tolerance — Generally speaking, encourage you to further your investment your risk tolerance refers to what type of ?education. investor you are. If you’re an aggressive
Kathy Thompson, long time manager of Kitsap Credit Union’s (KCU) Poulsbo Branch, was recently announced as the new manager of the Silverdale Branch located on Silverdale Way. Thompson has held various leadership roles since joining the staff at KCU in 1999. During her tenure at the Poulsbo location, T h o m p s o n contributed to the opening of a student run branch inside North Kitsap High School, and several adult financial education seminars in North Kitsap. Regional Manager Jerry Richardson, shares that Thompson “has proven to be a reliable and skilled leader who, will no doubt be a wonderful benefit to Silverdale’s large team and busier location.” Thompson looks forward to working with her new community and plans to continue to focus on providing outstanding service to Credit Union members, while maintaining her involvement in KCU’s financial education programs.
YOU CAN’T CONTROL 26 Kitsap Peninsula Business Journal•KPBJ.com September 2011
www.edwardjones.com
Members SIPC
THE WORLD,
BUT YOU CAN CONTROL YOUR DECISIONS Your local financial advisors:
Sometimes the market reacts poorly to world events, but just because the market reacts doesn’t mean you should. Still, if current events are making you feel uncertain about your finances, you should schedule a complimentary portfolio review. That way, you can make sure you’re in control of where you want to go and how you get there.
Ron Rada
Pat McFadden, AAMS
Todd Tidball
Jason Skifstad, AAMS
8079 E Main St Suite 111 Manchester
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3255 NW Lowell St Silverdale
360 871-0998 1-800-995-0242
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Calvin Christensen
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Brian George
Glenn Anderson, AAMS
3100 NW Bucklin Hill Rd Suite 115 Silverdale
23781 Hwy 3 Suite 101 B Belfair
10705 Silverdale Wy NW Suite 101 Silverdale
19032 Jensen Way NE Poulsbo
360 698-6092
360 275-7177
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Denette George
Adam R. Burleson
Jeff Thomsen
Jay Seaton
4275 SE Mile Hill Dr Suite A Port Orchard
2135 Sheridan Rd Suite E Bremerton
5971 Hwy 303 N Bremerton
600 Kitsap St Suite 102 Port Orchard
360 871-9707
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360 475-0683 1-888-475-4450
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Lori Morgan, AAMS
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Jessica Rein honored as Kitsap Credit Union’s latest CU@School graduate
Liberty Bay Bank adds to its team of professionals Liberty Bay Bank announces that Ryun Foster and Susan Kirkwood have joined its team of professionals. Foster has 11 years of consumer and commercial banking experience, most recently in the Bainbridge Island market. She joins Liberty Bay Bank as a professional banker. Kirkwood brings 16 years of commercial and consumer lending operations experience. She joins Liberty Bay Bank as AVP and loan operations manager. Rick Darrow, president and CEO of Liberty Bay Bank stated that, “We are thrilled to have Ryun and Susan join Liberty Bay Bank. They bring with them many years of local banking experience and a commitment to a high level of customer service.”
Edward Jones advisor sponsors Coffee Club Kitsap Credit Union has honored Jessica Rein, senior contact center representative, for completing the Credit Union’s 2-year intensive internal degree program called CU@School. The program required 60 credit hours consisting of online and classroom course work, workshops/webinars, and a final presentation. For her accomplishment Rein received an award of $1,500 as well as paid time off. Training Manager, Tracy Cunningham stated, “Jessica’s drive and passion was very evident during this program. She worked hard and did a fantastic job. We are all very proud of her.”
Don’t let downgrade deter you from investing Downgrade was not a surprise. Because the downgrade had been rumored for weeks, the financial markets may have already “priced in” some of the impact. While it’s possible that interest rates may rise, it’s also important to note that similar downgrades of other countries’ debt in the past have not resulted in significant rate jumps. As for the stock market — which was already volatile, partially due to the debt ceiling issue — the negative reaction we’ve seen to the downgrade will likely be short-term. This downgrade should not o be as calamitous as we’ve been led to believe. Corporate profits, always a key driver of stock prices, are still strong, and with the market correction we’ve seen in the past couple of weeks, many quality stocks now appear to be more attractively priced — which means it may actually be a good time to look for investment opportunities that make sense for you, rather than heading to the “sidelines.” In any case, you never want to overreact to any one piece of news. If you were to make big changes to your investment strategy, you’d likely incur fees and expenses — and, even more importantly, your portfolio might no longer be positioned to meet your long-term goals. You’re much better off by sticking with a strategy that’s based on your individual needs, risk tolerance and time horizon. This can be challenging, especially in light of the screaming headlines. But remember, although past performance isn’t indicative of future results, the U.S. financial markets have seen plenty of traumas in the past, and have survived – and usually, eventually prospered.
A study of 50,000 Silicon Valley employees by a team of Stanford University researchers that says that you end up getting paid more if you stay with the same employer than if you job-hop in pursuit of higher income. According to Stanford’s Dr. Kathryn Shaw, who headed up the study, employees with at least five years experience with the same employer typically received annual raises of 8 percent, compared to 5 percent for people who had a history of jobhopping. Dr. Shaw concluded that while nobody can be expected to work at the same place for their whole careers, most are better off if they put in 5-10 years for the same company before moving on. Her study also shows, she says, that employees who stay put longer are more productive and creative than those who leave earlier than that. She does not apply her conclusions to younger workers, however; those workers should focus on finding the employer that is the best fit for their talents and interests. Once you find that employer, though, you’re better off financially to stay put.
Reduce Reuse Recycle
September 2011 Kitsap Peninsula Business Journal•KPBJ.com 27
By Jason Skifstad Just when you thought you could take a break from financial drama, following the resolution of the debt ceiling issue, here comes Act 2: the downgrade of the U.S. long-term credit rating. As a citizen, you may be feeling frustrated. And as an investor, you might be getting worried. But is this concern really justified? Certainly, it was news when Standard and Poors (S & P) lowered the U.S. long-term credit rating from AAA to AA+. This was, after all, the first time that the U.S. has lost its AAA status since its initial publication 70 years ago. Furthermore, S & P put a negative outlook on the rating, which means that further downgrades are possible. But despite these developments, there’s no reason to think that the sky is falling in on the investment world. Consider the following: “Downgrade” doesn’t mean default. Rating agencies such as S & P assign ratings to bonds to help investors measure credit risk — the chance that they won’t receive timely payments. The downgrade to AA+ just means that investors would be slightly less likely to receive future payments than if the bond had an AAA rating. This is far different from a default, which would result in investors not receiving current payments. U.S. credit rating is still high quality. S&P didn’t change the U.S. government’s short-term credit rating, which applies to debt maturing in less than one year. Furthermore, even the long-term rating of AA+ is still considered high quality. Also, keep in mind that two other major rating agencies, Moody’s and Fitch, both affirmed their AAA rating on the U.S., although Moody’s has a negative outlook on its rating.
Donald Logan, a local Edward Jones financial advisor, will be hosting a coffee club at 8:15 a.m. the fourth Wednesday of every month at 2416 NW Myhre Road Suite 102, in Silverdale. “The coffee club offers us an opportunity to learn from one another and receive market updates,” Logan said. “I look forward to keeping individual investors informed about the current market and economy, as well as have fun and get to know some of my neighbors. Seating may be limited. To reserve a seat, call Sarah Bartley at (360) 692-1216.
Staying in a job longer gives bigger pay raises than job hopping
KPVCB’s 2nd Tourism Roundtable to focus on front line businesses
28 Kitsap Peninsula Business Journal•KPBJ.com September 2011
The Kitsap Peninsula Visitor and Convention Bureau will hold its second tourism roundtable “Partners, Packages & Promotions,” on Thursday, September 22 from 1-4 p.m. in the ballroom at the Baymont Inn & Suites in Bremerton. Mayor Patty Lent will welcome the guests, with the event being introduced by State Senator Christine Rolfes. In viewing the continued economic situation, KVPCB Planning Committee Co-Chairs, Steven Gear, Manager, Oxford Hotel, and Patti Kirkpatrick, City of Port Orchard, decided RT2 needed to focus on supporting businesses and organizations that provide the front-line services tourists, visitors, and planners rely on everyday. Patricia Graf-Hoke, Executive Director,
Kitsap Peninsula Visitor & Convention Bureau agreed. “We need to support our local hoteliers, restaurants and other businesses that are vital to our tourism industry which generates more that $280 million a year in revenues.” said Graf-Hoke. The purpose of RT2 will be to establish local and regional partnerships, tour packages, and co-op promotions that will bring visitors and events to the region during the off season which, according to GrafHoke, is about nine months out of the year in the Puget Sound. “We can’t afford to only focus on the summer months.,” she, said. The first Tourism Roundtable was held in late April at Poulsbo City Hall and was attended by nearly 150 people representing tourism teams from seven Kitsap Peninsula areas including all four cities. Teams worked together to identify local assets including attractions, events, and services which were posted on a 25 foot-long “Wall of Wonder.” Teams then identified regional assets for each area which were posted on a large map of the Kitsap Peninsula region. “It’s clear from the pages of data gathered, that the Kitsap Peninsula has plenty of impressive assets that extend from Hansville to Olalla,” said diane Robinson, KPVCB Board President and owner of Elandan Gardens. “Now it’s time for to establish ongoing partnerships to create memorable, unique tours for tourists and corporate prospects. The recent visit by 300 Microsoft employees proved we have a lot to offer and work together to tell our story.î said Robinson.
Robinson noted that the tremendous success of KVPCB’s first Tourism Roundtable proved elected officials and stakeholders agree that tourism already provides significant economic benefits to the region and that Kitsap is not taking advantage of its tourism potential. “There is no reason for Kitsap to be number 38 our of 39 counties when it comes to generating tourism revenues. We can and need to do better,” Robinson added. Participants at Tourism Roundtable 2, will again work in geographic teams to identify local and regional partnerships, develop tour ideas for travel writers, create weekend hotel packages and promotions. There will also be a presentation lead by Charles Keating, President, West Sound Technology Association about how to reap the benefits of the latest tourism technology. There will also be presentations by Argosy Cruises and other professionals event planners with handouts provided. To accommodate a larger group, the KPVCB is holding Tourism Roundtable 2 at the Baymont Inn & Suites in Bremerton which is donating the cost of the venue. The event is open to anyone who does, or would like to, attract tourists or event planners including spas, restaurants, retailers, those offering activities or unusual attractions. The event is free to KPVCB members and $10 for non-members. To RSVP, send an email to info@visitkitsap.com or go to www.VisitKitsap.com for more details. Payment will also be accepted at the door.
Display tables will be available at no charge. Participants are encouraged to information about their business, organization, event, and services. Sign-in and networking start at 12:30 p.m. RT2 is being sponsored and supported by the City of Bremerton, Kitsap County, Kitsap Public Facilities District, Port Madison Enterprises, West Sound Technology Associates, Baymont Inn & Suites, and the Kitsap Peninsula Business Journal.
Kitsap’s brand new bag of Neighborly Greetings offers a warm welcome People moving to Kitsap County get a bag filled with samples and savings from sponsoring stores, service providers and community organizations, courtesy of a new business called Neighborly Greetings. Owner Jane Hill says, “I bought Neighborly Greetings earlier this year because it’s such a great service for both newcomers and our local business people — and I knew how to make it even better.” Neighborly Greetings welcomes people to Kitsap County with hand delivered bags of free goodies. Whether moving into a house or apartment, people benefit from what’s in the bag: • Samples and coupons from local retailers and service providers • A binder of information about the bag sponsors that serves as a handy directory to businesses and community organizations Local businesses get a head start on earning customer loyalty. Each can be the first in his or her line of business to connect with newcomers. Neighborly Greetings offers exclusivity for each business in a particular geographic area: if one chiropractor from Bremerton is “in the bag”, another Bremerton chiropractor can’t get in. In July, Neighborly Greetings started deliveries to Silverdale and Bremerton households. Port Orchard and Poulsbo bags are coming soon. Hill has improved the service by adding more sponsors, more samples and more coupons. She says, “For newcomers, it’s like getting a personal recommendation to patronize our sponsors when I deliver the bags.” She’s made Neighborly Greetings more attractive for businesses to sponsor by adding services outside the bag: • Sponsors are represented in the Neighborly Greetings booth at events throughout the year, such as Silverdale’s Whaling Days and the Kitsap County Fair. • Sponsors get a report on who receives the bags, for individual follow-up. • Sponsors are featured on the Neighborly Greetings website. • Neighborly Greetings sends reminders to recipients, two months after delivery, to use the resources that came in their bags. New Kitsap residents can request a bag, delivered right to their doorsteps, by visiting www.NeighborlyGreetings.com. Merchants who want to be included in a bag can contact Hill at (360) 509-9265 or jane@neighborlygreetings.com.
In business, ethics really DO matter Clearly when our business culture lacks ethics and trust, our good employees will jump ship at the first opportunity! The Ethics Resource Center conducted a survey in 2009 to determine the top ethical issues in companies. In order, they were: abusive behavior, lying to employees, email or internet abuse, conflicts of interest, discrimination, lying to outside stakeholders, employee benefits violations, and health or safety violations. It’s obvious that many of these issues carry legal liability for any company perpetrating them. It becomes imperative, then, that employees not only know how to report ethical concerns, but that they feel comfortable doing so. A place to start in your business is by creating a Code of Conduct which governs the behavior of all employees, from senior managers down to the most junior staff member. Your Code of Conduct will cover areas such as conflicts of interest, using company assets, acceptance of gifts from outside vendors, handling of confidential and proprietary information, compliance with laws and regulations, and use of company funds for entertainment. Other areas to consider are the application of internal personnel policies, compensation and benefits to ensure fairness, predictability and transparency. While this may not sound hard to do, it actually can be difficult to carry out. It is often the senior staff and/or company owner that is quick to bend the ethics curve. They are the ones that are faced with the tough decisions that can affect the bottom line, they may be struggling in this economy to keep their corporate ship afloat, and if they are at the top of the ladder, they may feel that in making their decision they are answerable to no one. Whether it’s because they feel they deserve something, or just feel that they have the right to make the decision, the corporate moral compass can become re-set by just one person. There are several steps that you can take in your business to promote an ethical corporate culture. Maybe most important, ethical behavior needs to be modeled by the company’s leadership. As children look to their parents to see how they are to behave, so do our employees look to us. It never works to expect people to adhere to the concept of, “Don’t do as I do; do as I say.” Be very aware that when a tough ethical choice is handed to
you, all eyes will be on you to see if you make the right decision. Encourage everyone in the company to treat others honorably and with respect. Promote transparency and honest communication. Practice active listening skills and be open to feedback. Ensure that your employees have multiple avenues to bring issues of concern forward. When an employee does bring a problem to light, you should already have in place a process to approach resolution of the issue. You will want to put on your investigator hat and get all of the facts before you come to a conclusion about what actions should be taken. And always remember, the complainant may be protected by law, and any form of retaliation against them cannot be tolerated. JR Ewing once said, “Once integrity goes, the rest is a piece of cake.” Well, perhaps that worked for JR, but in today’s society, with Twitter, YouTube, and all manner of instant media at our disposal, our integrity errors go global before we’ve even had a second to regret them. If your business does find itself on the wrong side of the ethics line, step back over it immediately. Remember what your momma told you, “Two wrongs don’t make a right,” and take steps to correct the error. Apologize with sincerity. Take the steps necessary to rectify the problem. And never shoot the messenger who alerted you to the situation. A very long time ago, Publilius Syrus said “What is left when honor is lost?” These are words we would all do well to remember each and every day as we work in and manage our businesses. (Editor’s Note: Julie Tappero is the President and owner of West Sound Workforce, a professional staffing and recruiting company based in Poulsbo and Gig Harbor. She can be reached at julie@westsoundworkforce.com. View her LinkedIn profile at www.linkedin.com/in/jtappero. The recommendations and opinions provided are based on general human resource management fundamentals, practices and principles, and are not legal opinions, advice, or guaranteed outcomes. Consult with your legal counsel when addressing legal concerns related to human resource issues and legal contracts.)
The Internal Revenue Service has announced an increase in the optional standard mileage rates for the final six months of 2011. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes. The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through December 31, 2011. This is an increase of 4.5 cents from the 51 cent rate in effect for the first six months of 2011, as set forth in Revenue Procedure 2010-51. In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2011. The IRS normally updates the mileage rates once a year in the fall for the next calendar year. The new six-month rate for computing deductible medical or moving expenses will also increase by 4.5 cents to 23.5 cents a mile, up from 19 cents for the fist six months of 2011. The rate for providing services for charitable organizations is set by statute, not by the IRS, and remains at 14 cents a mile. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
Survey finds first decline in number of teleworkers, but more frequent usage For the first time since WorldatWork began measuring telework in 2003, the total number of people who worked from home or another remote location for an entire day at least once a month has declined. The teleworking population in 2010 was 26.2 million, down from 33.7 million in 2008. This number, 23.2 million, represents nearly 20 percent of the U.S. adult working population in 2010. However, while the total number of teleworkers decreased, the percentage of people who telework more than once per month increased. In 2010, 84 percent of teleworkers did so one day per week or more, up from 72 percent in 2008. “Home” is still at the top of the list of common locations for teleworking in 2010, followed by “satellite center,” “hotel” and “while on vacation.”
In these uncertain economic times, West Sound Workforce can meet your changing needs — with local, flexible and immediate staffing solutions. Kitsap County
Gig Harbor Office
(360) 394-1882
(253) 853-3633
www.westsoundworkforce.com
September 2011 Kitsap Peninsula Business Journal•KPBJ.com 29
By Julie Tappero, President West Sound Workforce “There can be no doubt about our commitment to ethics and integrity,” Rupert Murdoch recently said. Sadly, he’s probably right. If perception is reality, most of us have little doubt about the ethics involved in Murdoch’s business scandal that we have watched unfold. This is certainly not the only example of a surprising lack of business ethics that we can think of, but it’s probably the most notorious recent example that comes to our minds. Many pundits have wondered how these things went on so long within Murdoch’s companies, why good employees didn’t speak up, and what happened to the ethical managers in all of this? Here’s another example: Some acquaintances of mine own their own business. For years they have been utilizing company funds to promote their own lavish lifestyle, even at times when they had trouble making payroll. Employees have watched company money be channeled inappropriately to purchase race cars, finance personal vacations, and buy all manner of fun toys. When these business owners discovered that they had employees who were stealing from the company, they were shocked, and they questioned what was wrong with business ethics these days? If your company is publicly traded, you are probably already familiar with whistle blower protections and such legislation as the Sarbanes-Oxley Act of 2002, and the more recent Dodd-Frank Act. If your business isn’t governed by the SEC, does that mean you don’t have to worry about ethics issues and whistle blowers? Not at all. There are many good reasons for all of us to take steps to ensure that our businesses have a strong Code of Conduct which all of our employees and managers closely follow. In 2010, Deloitte surveyed employed adults. 34 percent said they would be looking for a new job when the economy improved. When asked what factors contributed to that decision: • 48 percent responded that is was a “loss of trust” • 46 percent cited “lack of transparency” • 40 percent said it was due to “being treated unfairly or unethically by employers”
IRS increases mileage rate to 55.5 cents per mile
Confessions of a home-based business owner: Working at home, no longer a novelty
30 Kitsap Peninsula Business Journal•KPBJ.com September 2011
By Bill Hoke Working at home. Did I read that onehalf of American businesses are run from a desk in the family room, a work area in the garage, from an upstairs bedroom, a backyard office? Millions of other Americans are telecommuting, from home, a few days or a few weeks a month. When I first began to operate my free lance broadcast production business from my home, it was a novelty. When I launched my first home-based business, I had two small children at home and my clients were not impressed to hear a crying child or to
think I had a day care operating in my back yard. I also tried sharing space in an ‘executive suite,’ joined forces with a consortium of other independent business owners. I had a few aberrations when I went back into full time work, as an acting creative director in advertising agencies, working as a full time contractor, but — inevitably — I ended up back at home. While I have been working on my own business, I have been working and volunteering part time with Washington Community Alliance for Self Help (C.A.S.H.) where I have worked with
hundreds — maybe 1,000 — start-ups, most of which began as home-based. So what is the one biggest challenge? That’s easy, it’s self-discipline. Biggest single obstacle: time management. Second biggest obstacle: moderating the work to have a life. Third biggest obstacle: moderating the life to get work done. We hear over and over from start-up business owners that their biggest frustration is managing their time and when they work at home, the problem becomes more acute, as distractions multiply. Do I empty the dishwasher now, do the laundry, vacuum or clean the bathroom?
When to do the errands and grocery shopping? If there are children involved, as there were when I first began to work at home, how do I get them to respect my space so I can get my work done? How is a six year-old to understand I need quiet to write a report? Is it fair to a sixteen year-old to have to drop everything to baby sit a sibling because I need to talk to a client for an hour on the phone? Working at home brings with it a thousand distractions and temptations and I have found myself setting really short deadlines: finish this page and you can go get more coffee. Make three cold calls, then I can walk to the post office. Keep a to-do list and work it hard, reward yourself with a personal email every hour. If you have been working in a structured office setting and find yourself working from home, take it easy on yourself. Some days you may not be productive and some days you will work until midnight. And that’s the second biggest obstacle: with so many working part time at home, or doing contract work, the challenge of trying to moderate work when the computer or telephone is in this room, or the next room is constant. How easy to get up after dinner and get sucked into a three-hour report or answer e-mails, or do research and keep an eye on the children’s bath water or the latest twist in CSI. I am not sure there are any universal answers to these questions but I do know that with the desk across the room and not a commute away, that working from home is now a way of life for many and we will each have to find a way to adjust life and work to accommodate this new way to work. Here are seven working-from-hints that may help: • Be systematic, make to-do lists and keep on track. Set flexible goals. • Try working early in the morning; get up one hour before everyone else and do the work then that requires the most concentration. • Make telephone calls when no one else is at home • Get out to network. It’s too easy to isolate yourself and it’s unlikely you can do all your new business development from home. • Develop a list of best prospects and set aside time every day/week to make those dreaded cold calls. • No business meeting is more important than a soccer game, ballet practice; one real advantage of working from home is that you CAN take off to participate in family events. • Be kind to yourself; not everyday is going to work the way you planned. (Editor’s Note: Bill Hoke manages his marketing and sales consulting business from his home in Manette. He can be reached at 360271-9448 or hoke@hokeconsulting.com.)
CAPRI Heart & Lung Institute closes after 33 years After 33 years of service to heart and lung patients and their physicians on the Kitsap Peninsula, CAPRI Heart & Lung Institute ceased operations on July 29. CAPRI operated Kitsap County’s only cardiac and pulmonary rehab program. The nonprofit organization served 80 rehab patients daily in Bremerton. They also operated three maintenance programs serving 190 participants in Bremerton, Port Orchard and Poulsbo. The CAPRI staff of fifteen people included three physicians, four nurses, five exercise specialists, an admissions coordinator, billing specialist and executive director. Nancy Koch, a healthcare consultant with KPS Health Plans, and president of the CAPRI Board of Directors summarized the situation. “CAPRI is closing due to significant changes in the Medicare program. Since April 2010, Harrison Medical Center provided a generous grant that enabled CAPRI to continue operating while they worked to develop new cardiac and pulmonary rehabilitation and maintenance programs. We are very grateful for Harrison’s financial support and confident that they will provide the community with high-quality programs.” Executive Director, Richard Huddy stated, “We have had a great run over the past 33 years. Since 1978, we provided 348,700 treatments to 22,900 people. It has been a privilege to help so many people make the most of their second chance for longer, healthier lives. We are proud of our accomplishments and pleased to finish on a high note.” “Thanks to the United Way of Kitsap County we never turned away a rehab patient or maintenance participant for lack of funds. We are grateful for the support of our referring physicians, voluntary directors and generous donors. Personally, I am thankful for the support of our highly skilled and dedicated staff. They truly exemplify the ideals of service,” Huddy added. On Aug. 1, Harrison Medical Center began a new cardiopulmonary rehab program in the same location as CAPRI. In addition to the rehab program, Harrison is developing a new maintenance program that will operate at the Silverdale YMCA on Mondays, Wednesdays and Fridays, and at the Bremerton YMCA on Tuesdays and Thursdays. Ultimate Performance Rehab and Wellness, whose main office is in Poulsbo, will continue CAPRI’s traditional cardiac and pulmonary maintenance programs at three locations in Kitsap County: a new space at Sheridan Village in Bremerton, Suite 10 at Cedar Heights Professional Building in Port Orchard, and at Ultimate Performance in Poulsbo. Eric and Megan Milyard own and operate Ultimate Performance. They provide occupational therapy, physical therapy and regular gym memberships in addition to the new cardiac and pulmonary maintenance program.
Maxwell to host leadership seminar Dr. John C. Maxwell, an internationally respected speaker, author, trainer and coach, will visit Kitsap County on Tuesday, Nov.1 for a leadership training seminar, The Five Levels of Leadership. He is the author of over 50 books and the number six all-time top seller of books on Amazon.com. One humdred percent of the registration fees for the event will benefit ShareNet Food Bank in Kingston. Registration options include: Gold level, $149: luncheon, autographed copy of The Five Levels of Leadership, photo taken with Dr. Maxwell, and three hours of lecture. Silver level, $39: two hours of lecture on The Five Levels of Leadership. Sponsored by: Parker Financial LLC; Sherrard, McGonagle & Tizzano; Haven in Allyn, Long Term Care; and www.nextdoorhs.com.
Presented by:
Now Accepting Online Nominations! Now accepting nominations for the Kitsap Peninsula Business Journal’s annual 40 Under Forty leadership recognition program! Do you know someone outstanding in their industry or profession who is deserving of recognition?
Individuals must be under the age of 40 on August 15, 2011 for consideration. For more information, visit www.KPBJ.com. Sponsored by:
Nomination Deadline This Month!
September 2011 Kitsap Peninsula Business Journal•KPBJ.com 31
Submit your nomination today and help us highlight the best and brightest young business leaders on the Kitsap Peninsula.
September @ 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.
Thank you to our Chamber members who regularly host and cater our luncheons, Desiree Steffens seminars, Board Port Orchard Chamber meetings, orientation 2010-2011 President meetings and receptions: Windermere Real Estate, McCormick Woods Golf Course, SK8Town Event Center and Tommy C’s Sports Bar & Grill, Trophy Lake Golf & Casting, Capriccio Catering, Port Orchard Pavilion and most recently our August Luncheon at Cedar Springs catered by Le Garmache Catering. MoonDogs, Too, The Lighthouse Restaurant and The Waters Restaurant frequently accommodate us as well for committee meetings. Thank you to Jay Seaton, Jerry Lampert, Billi Gurnsey, Rich Peterson and Steve Sego for bringing new members to the Port Orchard Chamber and receiving 10% off their next dues renewal for each new member they have brought in! Please join us at our Candidates Forum when the candidates for both the Port of Bremerton Commissioner race
President’s Message
www.portorchard.com 360-876-3505
and the Kitsap County Commissioner race will join us. Please watch for information on our next FREE Morning Seminar when we will provide a free CPR or First Aid class to Chamber members sponsored by Harrison Medical Center! Let us know if you are interested in that class! And Please mark your calendars for Friday, October 14th when the Chamber will install new board members and officers and hold its annual fund-raising auction, “T.G.I.F. Cocktails and Dinner with the Chamber” at McCormick Woods.
Forward thinking entrepreneurs and executives know the value of the first-mover advantage. Today, simply having social media accounts isn’t enough. In order to stay ahead of trends and the competition, new media needs to be integrated into your business plan. Author, speaker, and consultant Frank J. Kenny will share his “Integrating Social Media Marketing Into Your Business Plan” road map with us at our September meeting. Frank is a thought leader on small business and association growth strategies, especially through new media. In addition to his recently completed speaking tour, which included instructing more than 150 business associations and their members on social media strategies, he has taught entrepreneurs and executives internationally. Frank is on the faculty of the U.S. Chamber of Commerce Institute of Organizational Management (IOM) program and has instructed on social media marketing through the American Chamber of Commerce Executives (ACCE) and the Western Association of Chamber Executives (W.A.C.E.). He is the author of a new book on social media essentials and strategies for small business. He consults on the topic nationally. He has a degree in finance, his MBA, and is a graduate of the Western Association of Chamber Executives (W.A.C.E.) Academy program Reservations are required! Please reserve by September 6th. Chamber members are $20 if prepaid and $22 at the door, Non chamber members cost is $22 and they must prepay. RESERVE Today at www.portorchard.com or call the Chamber office at 360-876-3505.
The Port Orchard Chamber Legislative Committee will present a Candidates Forum on Wednesday, September 28, 2011 at 8 a.m. at the Port Orchard Pavilion. The forum will present the candidates running for the Port of Bremerton District No. 1 Commissioner District 3 Axel Strakeljahn and Shawn Cucciardi and the candidates running for Kitsap County Commissioner District 1-Chris Tibbs and Robe rt Gelder. There is no cost, and reservations are not required but an email to office@portochard.com to let us know you are coming is appreciated. Coffee and muffins will be served.
Kelly is still active-duty Navy. They have two children, 5 year old daughter Ava and 9 month old son Levi. As a family, they enjoy exploring the outdoors and traveling as much as their busy schedules allow. When asked what she likes doing when not at work Rachel jokes, “Sleeping!” due to the long hours she commits to the success of their business. Since joining the Chamber, they have had great experiences with networking, support from other businesses and help from the staff. Stop by The Waters Restaurant and meet Rachel and Kelly. Experience what this great family has to offer you and your family.
WELCOME NEW MEMBERS Ted Hilliard P.O. Box 610, Tracyton, WA 98393 360-383-0383 Ben Pinneo 996 Harrison Avenue, Port Orchard, WA 98366 253-732-1248 Young Family Chiropractic • Kim Young 450 Port Orchard Blvd. Suite 390, Port Orchard, WA 98366 360-602-0893 Reliable Storage — Port Orchard • Steve Van Houten 8233 Spring Creek Road SE, Port Orchard, WA 98367 360-779-7789 Kumon Math & Reading Center of Port Orchard • Katrina Askew 3001 Mile Hill Drive, Port Orchard, WA 98366 360-981-4242 Ed’s Fly Meat, LLC — The Fruit Fly Company • Erin Kelley 1753 Harrison Avenue, Port Orchard, WA 98366 360-871-1100 Kelley Imaging Systems • Dale Dennis 3907 North 34th Street, Tacoma, WA 98407 360-710-2943 Bruce Titus Ford — Port Orchard • Matt Wambold 1215 Bay Street, Port Orchard, WA 98366 360-876-4484 Edward Jones Investments — White • Jeff White 423 Sedgwick Road SW, Port Orchard, WA 98367 360-876-4709
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Thursday, September 8th, 2011, 11:30 a.m. Location: McCormick Woods Banquet Room, Port Orchard Presenter: Frank J. Kenny — Growing Your Business in the 21st Century: Integrating Social Media Marketing Into Your Business.
Candidates Forum
SPOTLIGHT ON A MEMBER Rachel & Kelly Smith/The Waters Restaurant We all love hearing success stories of folks living out the American Dream. Rachel and Kelly Smith are doing just that in beautiful Port Orchard. This local couple owns The Waters Restaurant located on Harrison Avenue off of Bay Street, which offers the public upscale all-American dining. Selections range from fresh crab cakes to burgers and fries. Even the prime rib is shaved inhouse for their Philly cheese steaks and French dip. The restaurant has been open 4 great months and they plan to stay local because of the downto-earth community and the beautiful atmosphere our town possesses. Rachel works full-time at the restaurant, while
September General Membership Meeting
Retirement – Assisted Living
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$5 billion in Recovery Act funding helped increase number of weatherized homes and jobs in Kitsap Kitsap Community Resources (KCR) located in Bremerton, has been involved in free weatherization upgrades for lowincome households and retrofitted over 641 homes using ARRA funds — up from approximately 70 homes per year before the funding. KCR claims that these homeowners now save an average of 35 percent in annual energy costs and some 1,500 low-income individuals have already benefited from the program. In addition, KCR created 13 new jobs and hired two full-time and one part-time employee dedicated to energy-efficiency projects. Conservation Services Group received one of 20+ EECBG to implement residential energy efficiency programs primarily in Bainbridge Island and a smaller pilot in Bremerton. The $4.88 million program funding to the communities of Bainbridge Island and Bremerton will result in greater efficiencies in local energy usage and create a replicable model for small communities across the country, enabling them to tap into energy efficiency as the most valuable source of new energy. Olympic College (OC) shared in a $3.9 million U.S. Department of Labor grant for energy-efficiency training in Kitsap, Jefferson and Clallam counties. These programs will provide new or transitional education for workers migrating to the weatherization workforce including provider businesses, building sciences, energy efficiency technologies, and diagnosing problems associated with the indoor living environment, efficiency, building durability and occupant comfort. The college used their $275,000 share to train 91 students in energy-efficient construction, weatherization and energyaudit certifications. OC also provides technical training for individuals to become building energy analysts. There, students learn the BPI and HERS energy rating standards, and complete certification exams
leading to national certification in both standards. Successful students are trained and ready to perform home energy audits. The college has also offered courses in weatherization which includes training on BPI compliance; Indoor Air Quality, including Ventilation and Acceptable Indoor Air Quality standards; and, Mold Inspection, including impact on health — a particularly important issue in the Pacific Northwest. In addition, the college has various LEED exam prep courses. LEED standard buildings are in higher demand as our country becomes sensitive to sustainability issues, energy conservation, and greenhouse gas emissions. With the combined efforts of these agencies and the federal grants, several businesses have evolved while other individuals have enhanced their skills or used their new certifications to launch successful energy assessment businesses, hiring new graduates from the program. Others haven’t fared that well, as the City of Seattle’s weatherization program, which promised to create 2,000 jobs — as home energy auditors, commercial energy analysts, construction and home weatherization workers — and retrofit 2,000 homes with their $20 million grant, fell far short of those goals. One report claims that only 337 homeowners have stepped up and applied for the program, with only 14 gaining approval. The Seattle Post-Intelligencer reported that only three homes were ever retrofitted and just 14 jobs created with the Retrofit Ramp Up award, which included a 7-to-1 match from the city, state, utilities and private investment. Many of those jobs are administrative, and not the entry-level pathways dreamed of for low-income workers. Many are left wondering if the original goals are now achievable. Michael Woo, director of Got Green, a Seattle community organizing group for the
environment and social justice, told the new organization that the jobs haven’t surfaced yet, and that the number of meetings and tedious process has been almost painful. The administrators were the only ones who got jobs, while there’s been no real investment for the broader public. Financing so far has gone to buildings that include the Washington Athletic Club and some hospitals, not the lowerincome homeowners the program was intended to help. City representatives and organizers only offered that the economy, bureaucracy and bad timing were to blame for the poor results. $20 million divided by 14 = $1,428,571 for each new job so far. Even with the cost of retrofitting each of those 3 homes, the money left would be a sizable salary! While Kitsap County’s government’s own program — RePower Kitsap — is comparatively sluggish to start compared to KCR’s shining results. Their $2.22 million grant awarded in 2009 as part of a countywide retrofit program, has completed 87 assessments and only five loans approved. While most of their energy upgrades went to places like the juvenile detention building, a radiant heating system at county fairgrounds, and installing a solar hot water system at the courthouse. KCR’s phenomenal success may have a lot to do with having a 30-year weatherization program already in place since the 1980s. The stimulus money leveraged past grants and allowed the agency to expand on a proven program without delays, according to KCR Executive Director Larry Eyer. Still, this underscores the proven track record of many non-profit organizations as compared to their bureaucratic-laden, government counterparts when capitalizing on grant funding. Chock it up to experience!
Port Orchard debuts first commercial EV Charging Stations on the Peninsula The City of Port Orchard recently held a ribbon cutting and ceremonial “Plug In” at its new electric vehicle — or EV — charging stations, which are located on Frederick Street, between Bay Street and the waterfront. Representatives from several of the manufacturers of EVs, such as the Nissan LEAF, Chevy Volt, and Toyota Prius plug-in hybrid, were in attendance, along with their cars, and information about them, for the general public to preview. Installation of the charging stations are part of the City’s ongoing “Green Initiative” put in place at the beginning of 2010 by Mayor Lary Coppola. “These are not only the very first EV charging stations in Kitsap County, but on the entire Kitsap Peninsula,” stated the Mayor. “We paid for these primarily with
grant money from several sources, so I’m proud to say the cost the taxpayers of our Citywas minimal.” The City had budgeted $20,000 for the stations in its 2011 budget, so the grant funding reduced the amount the City eventually spent. With the Seattle metropolitan area being the number two place in the country for EV sales, the City sees the charging stations as a way to help boost in-state tourism. The Kitsap Peninsula Visitor & Convention Bureau (KPVCB) agrees, and is helping the City promote them as a way to encourage I5 Corridor EV owners to visit Port Orchard. “Reaching out to those EV owners, we can make a compelling case for visiting Port Orchard,” said KPVCB Executive Director Patti Graf-Hoke. “They’ll come, spend their money, and plug in, so they can get home
without suffering what EV owners call ‘range anxiety.’” “Range anxiety” is the term for the fear of running out of electricity before being able to recharge. Graf-Hoke also suggested that the charging stations might create a business opportunity for someone to rent European-style electric scooters such as the ones available on the waterfront in Victoria, B.C., as well as electric bikes and motorcycles. In addition to the Kitsap Peninsula Visitor & Convention Bureau helping the City promote EV tourism, several EV automotive enthusiast groups in the Seattle area are also making their members aware of the charging
stations, and encouraging them to visit and try them out as well. “We will be charging for the electricity, so City taxpayers have absolutely no cost associated with any of this,” said Mayor Coppola, “Unless of course, they plug in their own EV.” The City is earning a reputation as being on the cutting edge of green technology. Late last year Coppola instituted the use of Apple iPads for City Council and staff members, which has significantly reduced paper use, and the costs associated with it by an estimated $40,000 annually. For more information on Port Orchard, visit www.cityofportorchard.us.
September 2011 Kitsap Peninsula Business Journal•KPBJ.com 33
By Kathleen Byrne-Barrantes The American Recovery and Reinvestment Act (Recovery Act) of 2009, provided $5 billion to the DOE Office of Energy Efficiency and Renewable Energy’s Weatherization Assistance Program (WAP) in Fiscal Year 2009. The program goal was to reduce energy costs for low-income families by increasing the energy efficiency of their homes, while ensuring their health and safety. Through the Recovery Act, the Obama Administration made an unprecedented commitment to weatherizing and retrofitting our nation’s residential building stock. Of the $5 billion, 20 percent (approximately $1 billion) was made available for Training and Technical Assistance (T&TA) directed at the state and local levels ($864 million) as well as at the national level, by DOE ($146 million). Priority populations are the elderly, persons with disabilities, families with children, high residential energy users, and households with high-energy burden as a percentage of income. DOE works in partnership with states and local agencies to implement the program. Whereas these future employment sectors will save energy, attract new businesses, and lead to promotion of diversified sustainable economic growth, success will depend on extensive workforce training. The U.S. Department of Energy’s Energy Efficiency & Conservation Block Grant (EECBG) funding encouraged energy conservation efforts. Since 2009, Kitsap County has received more than $4 million of these grants to reduce the carbon footprint of homes and train the local workforce.
2011 Acura MDX: Precision engineering meets luxury SUV By Bruce Caldwell The 2011 Acura MDX is the latest version of Honda/Acura’s most deluxe SUV. The model received a major revamp in 2010, so 2011 changes are under-theskin. A key item is the excellent six-speed automatic transmission. The MDX is loaded with high-tech safety, information, and entertainment features. The scope of the features exceeded our one-week exposure. The Acura MDX is a mechanical and electronic marvel. Walkaround: Maybe it’s just us, but we preferred the more conservative Acura styling cues before the grilles got so aggressive. The large expanse of chrome and scoops is a little too much for us. In general, Acuras tend to be stylish in an understated way. We think this helps keeps older models looking fresh and it aids resale values. Wheel arches have also gotten more aggressive on many SUVs including the Acura MDX. The MDX is relatively tame, which we like. Overall, the styling of the MDX is handsome and the fit and finish are top notch, as is expected of Acura products. The MDX isn’t a petite SUV, but then big has become the norm for most SUVs.
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The MDX avoids to behemoth category and its superior chassis makes it drive and handle like a smaller SUV. Interior: Acura interiors have always been a strong point and the 2011 MDX is no exception. The blending of quality materials and finishes makes the MDX interior seem
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as much like a modern luxury penthouse as a multi-purpose car/truck interior. Our fully loaded MDX had heated and cooled front seats plus powder lumbar adjustment for the driver. These great seats add so much pleasure to long distance driving. Our MDX also had heated outboard rear seats, which is a nice touch for winter passengers. Storage space/bins/etc. is very good. Cargo capacity is versatile and spacious when the rear seats are folded down. Our test MDX had the full compliment of high tech entertainment and information systems. If younger passengers can’t be sufficiently entertained in this state-of-theart environment they need a parental reminder of the “old days” when lucky children had their own Etch-A-Sketch for backseat diversion. A box of crayons and newsprint tablets sufficed in our family’s vintage station wagon.
Everything the driver touches is comfortable and easy to reach/use. The environment is quiet (especially for an SUV), which accentuates the outstanding audio system. Under The Hood: If Acura interiors are first class the engines are even more outstanding. Most buyers pay more attention to interior amenities, but a luxury car with bad mechanicals is a source of frustration, not a true upscale experience. If we had to choose one word to describe the mechanical aspects of Acuras it would be precision. Acura engines have always been smooth and powerful. The 3.7-liter VTEC V-6 in the MDX is no exception. With 300 horsepower on tap it performs like a V8. Power delivery is super smooth and efficient thanks to an outstanding new 6speed automatic transmission. There are paddle shifters behind the steering wheel, but we rarely used them. Fuel economy is EPA rated at 16 city and 21-highway using premium fuel. We sneaked into the upper teens in mixed driving conditions with an emphasis on highway cruising. All the luxury and highway performance features almost make one forget that the MDX is a highly capable SUV. It has HillStart Assist, excellent 4-wheel disc brakes, and a sophisticated all-wheel-drive system called SH-AWD. We’ve driven various MDX models on dirt/mud trails and never been stopped. Most owners will use the advanced traction features during our unpredictable winter driving months rather than trying to blaze backwoods trails. Behind The Wheel: The Acura MDX is one of the more pleasurable SUVs to drive, especially considering its relative size. It handles and drives like a smaller vehicle. One very appreciated feature was the Blind Spot Information System, which was part of the Advance Package. A backup camera is another welcome feature. Whines: Besides our previously expressed views on the frontend styling other whines include the smallish sunroof opening (many less expensive vehicles have much more airy openings) and the fact that the rear seats don’t fold completely flat for cargo carrying. Bottom Line: An SUV is never going to top a luxury sedan for driving fun, but if passenger and cargo needs exceed sedan limits a luxury SUV such as the 2011 Acura MDX is a great way to go. The Acura MDX does an admirable job of blending functionality and luxury in a very safe, secure, all-weather vehicle — just the type of all-purpose vehicle many Pacific Northwest residents need and want.
All-new 2011 Buick Regal one great driving car
roofline limits rear headroom — a problem the smaller VW Passat and larger Mazda6 don’t have. Instrumentation has the computer/message center situated between a watch-dial-like speedometer and tach, underneath numerical fuel and coolant gauges, which are illuminated in GM’s signature ice blue. The navigation screen is top center offering excellent line-of-sight viewing. It also has has a multifunction controller right behind the shifter so it isn’t necessary to lean forward to work the touch-screen. White-on-black buttons on the center stack handle audio, car, and navigation chores, with dual temperature climate controls below, and redundant controls on the sporty steering wheel. Chrome trim abounds, framing the shifter, gauges and rotary dash controls. The 14.2 cubic foot trunk is fairly long and offers moderate lift-to-load and unload dimensions, securing points, and flat side walls. The 60/40 split rear seat folds down with a lockable pass-through in the armrest. Safety features include six airbags standard with rear-seat side-impact airbags optional, as is GM’s Electronic Stability Control. Under The Hood: Our 2011 Regal test vehicle was powered by GM’s 2.4-liter, DOHC, EcoTec four-banger. It puts a 182 horses to the highway, with 172 pound-feet of torque, and is married to a six-speed automatic. Fuel economy for the 2.4-liter is rated at 19/City and 30/highway. There’s an optional 220-horse turbocharged, direct-injected 2-liter with either a six-speed stick or automatic, that delivers a huge boost in torque. Behind The Wheel: We found the Regal very quiet, with a nice, smooth highway ride. In fact, it may be the quietest car in its class. A bad road surface will transmit some noise from the rear tires however, and we noticed some slight wind noise from behind at speed. But even with the engine pushing hard, it’s little more than background noise, with no audible hint it’s even working hard.
The Regal has a very solid feel, and driving it hard and fully loaded at freeway speeds offered comfort and quiet. It uses hydraulic steering that provides good feedback, feel and directional stability, and the brakes are certainly up to the challenge. Both the gas and brake pedals are calibrated so they require some foot travel before you get into heavy braking or kick-down acceleration, rather than the instant bite of a sports sedan. And while it’s not a true sports sedan, like some of its competitors —
namely the Acura TSX, Audi A4, Mazda 6, VW Passat, Volvo S60, and Lexus ES, it’s pretty close. Whines: While the Regal is more than adequate around town or on the freeway, with the 2.4, you could be pushing it passing a truck on a two-lane blacktop or climbing a mountain grade. Bottom Line: At presstime, the 2011 Regal was offered only in mid-line CXL trim with leather upholstery. Look for the Regal line to expand for 2012 with a less-expensive CX model, probably with cloth upholstery, and a high-performance GS version with different bodywork, front seats, power, suspension, tires, wheels and all-wheel drive. The 2011 Buick Regal offers a stylish alternative to the entry-premium midsize sedan segment, delivering visual appeal, soothing quiet, smooth ride, easily deciphered features, comfort and economy conducive to long drives — and a better than average warranty.
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September 2011 Kitsap Peninsula Business Journal•KPBJ.com 35
By Lary and Dee Coppola Buick has reincarnated the Regal for 2011 as a mid-size sedan born and built in Germany, but eventually to be built in North America. It’s based on the same platform as the Opel Insignia, which won major awards last year in Europe. Six inches shorter than the popular LaCrosse, the Regal is an all-new car for Buick. We got a first look at a GM media preview event last year in Detroit, but got an up close and personal preview on a trip from Atlanta to Gulf Shores, Alabama and back, that included 10 days of in-town resort-area driving. Currently, the only trim available is the nicely equipped mid-level CXL version. The Regal is basically a four-passenger car that could accommodate a rear-center child seat if needed. The leather interior reminded us of the Acura TSX, in that’s it’s a nice mix of sport and luxury. Optional amenities include Bluetooth, navigation with real-time traffic, and heated front seats. The option list should be enough to keep anyone comfortable and connected. Walkaround: Following the lead of manufacturers, like Nissan/Infiniti, Honda/Acura, Toyota/Lexus, Volvo and others, General Motors (GM) has designed the Regal as a world car built for sales in various international markets. It shares all its body panels with the aforementioned award-winning Opel Insignia, and bears the signature sloping roofline of today’s contemporary sedans. It’s visually extended by the edge of the rear lamp housings and a short trunk lid with a subtle lip spoiler. A simple character line sweeps down and back behind the front wheel and carries through the rear door. There’s no lower edge trim but textured paint protection does minimize stone chips. Side chrome is limited to the window surrounds and a front fender-mounted turn indicator. However, both ends have their share of brightwork, The lengthy nose showcases the prominent waterfall grille framed by lamp clusters. A large chrome spear anchors a big, truck-mounted Buick crest, and the sweep of the lamps mirror the LaCrosse. Turbo models boast a single chrome tailpipe on either side, while the non-turbo’s have conventional underbumper exhaust pipes.. On the turbo, the daytime running lights are right-angles that look like arrows pointing out and up toward the rear-view mirrors. Interior: With leather standard, the base CXL offers a welcoming interior that’s comfortable and quiet, with its character seemingly changing with the chosen color scheme. On our test vehicle, both front seats were powered 8-ways with a 4-way lumbar support. Long-term support was good — especially traveling — but the lack of lateral support and softness shows the seats are clearly meant for comfort rather than performance driving. The rear seats are quite comfortable for occupants under six feet. The sloping
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
36 Kitsap Peninsula Business Journal•KPBJ.com September 2011
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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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A radical idea that needs to take root It’s time to say, “We’re mad as hell and we’re not going to take it any more! By Rick Flaherty, President Leader International I gave a lot of thought whether to send this a an email to all my friends, family fellow business owners, mangers, and employees, or just send my letter to Starbuck’s CEO Howard Shultz, one of the few big-company CEO’s left in the U.S. with an ounce of chutzpa and the kahunas to take such a bold stand… and leave wellenough alone. But it’s far past time to NOT take a stand, and so I stand with and alongside Howard Schultz. Off with the gloves — it is time to fight back with bare-knuckle verve and send a message to Congress and the President that playing Russian Roulette with our checkbook is not what we sent our elected representatives to Washington, DC to do. They were sent to protect, serve and manage America’s vast wealth; not plunder it away. If ever our Freedom of Speech should stand tall and above all… it is now. I wholeheartedly agree with Mr. Schultz’s bold request to withhold campaign contributions to incumbent politicians in Washington, DC (the President included), not contribute to their re-election campaigns [in fact, I think we should stop funding any Congressional and Presidential re-election campaigns in the future and make these misguided leaderless individuals accountable to the electorate — the people who they are supposed to represent, and until those we elected to manage the People’s checkbook put our nation’s budget in order or as Howard stated, “a fair, bipartisan deal is reached that sets our nation on stronger, long-term fiscal footing” (referring to entitlements and revenues). It’s time our electeds felt the same pain we are feeling each and every day.
To survive the past three plus years, many of the small business owners I know took pay cuts personally, assembled all of their employees in one room (as we did) and offered the choice of pay cuts to all employees — no matter what seniority — or they could choose right there and then who they thought should lose their job. Amazingly, everyone agreed to a pay cut in lieu of seeing one of their fellow employees lose their job (gee wiz...do you think our state and federal workers might save a job or two or hundreds or thousands and agree to take pay cuts...yea right — the unions are too selfish and self-centered to ever agree to such a pragmatic solution). I know all too well — as does every reader of this post — that the only way to get anyone’s attention, politician or otherwise, is to hit them in their pocketbook. We re-elect and vote based upon the thickness of our wallets (how well the economy is doing) and not based upon empty promises and a fantasy future of hope (as so poorly expressed by President Obama). I don’t know about you, but the Hope button ran out of grease, the Promise button is running on empty and the Dream button is only a cloudy remembrance of some past time. What happened to America is we never reigned in the Wall Street fat cats, bankers and corporate crooks who put us in this mess. While they are still roaming the corridors of their various institutions earning million-dollar bonuses (the taxpayers funded), the general public is left with the mess and now being asked to pay higher taxes to fund the bail-outs, the TARP and loans to undeserving corporations. While small businesses shut down all across America, our neighbors lose their jobs and
Vegas busboys — who purchased 2-3 homes they could ill-afford — walk away from their obligations while the honest small businessman/woman is asked to pay higher taxes and be subjected to more regulatory BS. Did any of you receive any help whatsoever throughout this economic tsunami? And now we hear that Wells Fargo and Chase are “testing” $3 monthly fees on our Debit Cards! Why? Because Congress let these crooked execs who run these institutions off the hook. While these same banks made it easy for anyone with a pulse to borrow (literally anyone who could put their signature on a piece of paper — whether they had a dime in their pocket or not) we are being feed to death to make up for their mistakes. How do you send a message to Wells Fargo, JPMorgan-Chase, BofA and the other banks that are boldly ripping money from our pockets with unwarranted and unrelenting fees? Move your money to your community bank, close your accounts at any bank that charges fees and support your community banks that give a crap about customer service and actually have real relationship managers. Again, hit them in their pocketbooks and let’s see how they like it! Certain members of Congress were personally responsible for the housing mess — ”every American citizen should have the opportunity to own a home” ...was their mantra. I don’t remember when “a home” became 2 or 3 or for free! The other culprits are the banks for lending 100-120 percent to those who could ill-afford to make the mortgage payment even if they had put 2025 percent down (when we purchased any Radical, page 37
Americans should get their heads out of the clouds Well, it ain’t so! For example, the new president of the Organization of Petroleum Exporting Countries (OPEC) is a senior commander of Iran’s Revolutionary Guards. Rostam Ghasemi, head of the Khatam al-Anbia military and industrial base, was appointed Iran’s oil minister by President Mahmoud Ahmadinejad. That automatically makes him the new head of OPEC, which has a crucial role in setting world crude oil prices. Ghasemi is currently subject to sanctions by the United States, European Union and Australia, and his assets have been blacklisted by U.S. Treasury and other western powers. OPEC is made up of a dozen oil-
RADICAL
important than tending to the people’s business. From my perspective — fire them all. I know many of you personally who will (or a few won’t) read this, and I know that you would have fired the majority of these individuals long ago for their egregious actions and lack of performance. Remember, these are our representatives — who are our employees... lest we should forget “...and that government of the people, by the people, for the people, shall not perish from the earth.“ Abraham Lincoln’s Gettysburg Address. What am I asking for? Nothing other than I feel we should support Howard Shultz’s plea. I’ve had enough and I hope you have too. Send a letter to Howard Schultz and indicate your support. And then, put your money back in your pocket and not in the pockets of politicians who have only one goal in mind — getting reelected. It takes guts to stand tall and speak up, but that is our right as Americans...I hope you will do so and send your thoughts to Congress and the President as well. DISCLOSURE: I have supported Rob McKenna for Governor (WA) and intend to support Lary Coppola for Mayor of Port Orchard, (wow, a city actually operating in the black...kudos Lary) and Shawn Cucciardi for Port or Bremerton Commissioner (both Lary and Shawn are businessman and understand how to manage a budget and a business...wow, how novel). Rob McKenna “gets it” and is the fresh change Washington State needs. I am pulling all other donations to any incumbent politician.
from page 36 of the several homes we owned over the years if you couldn’t put down at least 20 percenton a conventional loan, sorry — No Loan!) Finally, if you didn’t know, Standards & Poor’s, the sorry ratings agency that put triple-A ratings on those CMO’s (Collateralized Mortgage Obligations) that were then re-packaged 2, 3 and sometimes even 4 times as AAA bonds and sold throughout the globe, and then had the guts to downgrade the AAA rating of the United States, is owned by none other than McGraw Hill — another misguided and ever-so crooked organization that had every incentive to lie, cheat and steal to keep the American Dream alive and well; even if it meant bankrupting thousands of banks and destroying pension funds and many small countries’ investment portfolios in the process. Even if it meant destroying the full faith and credit of the U.S., this too fat and really needs to fail corporation would go to any length to keep the building industry alive and well. Follow the money — this one is easy. McGraw Hill should be broken up into small pieces and then incinerated for what they have done to support the demise of America. Ranting...no. These are simple to find facts. And I am as sane as I have ever been. Just tired of seeing our great country and many states and cities being run into the ground by selfish, leaderless individuals who find getting re-elected much more
New Obamanomics plan on the way By Brian Darling Human Events Crashing poll numbers for the President indicate that his "blame game” strategy is not working. Obama persistently lays all responsibility for the nation’s woes on former President Bush, Republicans, the Tea Party, Congress, Wall Street, talk radio and Fox News. Last week, he added “bad luck” to the list. But the American people aren’t buying it, according to public opinion surveys showing the president’s Popularity sinking below 30 percent. That’s sent the White House scurrying back to the drawing board. The President has since promised that, just as soon as he finished his vacation in Martha’s Vineyard, he’d roll out a specific plan to jump-start the economy this fall. No need to rush on job creation, Mr. President. Rest well. Blaming others for your own failures can be very tiring. Very tiring, indeed.
exporting nations, many of which aren’t friendly to America. Between Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela, OPEC members collectively hold 79 percent of the world’s crude oil reserves and 44 percent of the world’s crude oil production, affording them considerable control over the global market. Why should we care? America still consumes nearly a quarter of the world’s oil production, yet has just over one percent of the total proven oil reserves. So our nation is dependent upon others for oil, and whether we like it or not, we still use petroleum for fuel and millions of other products we use every day in our hospitals, school, factories and homes. President Obama and other elected officials need to get their heads out of the clouds, look around to see who our friends are and act accordingly. Case in point: Canada has been our best friend and ally for hundreds of years. We’ve fought wars together, and our citizens are joined at the hip. Our economies are interconnected, and we cooperate daily on any number of issues. Canada is second to Saudi Arabia in proven oil reserves, but most of it is housed in the oil sands of northern Alberta. While some of the oil is mined, the majority of it will be extracted through pumping steam into deep wells and bringing the oil to the surface for refining. The Canadians have extensive investments
in environmental improvements, including water reclamation and conservation, and the Canadian government has adopted extensive pollution and greenhouse gas reduction programs. Yet, alternative energy activists want to stop oil sand development. But the fact is, even with energy conservation, increasing reliance on electric cars and hybrids and switching to natural gas-powered vehicles, America’s demand for oil will continue to grow. So will that of China and other developing nations. We will continue to need oil for the foreseeable future. The only question is where we’ll get it. Elected officials need to come to grips with the fact that by halting development of our proven oil reserves, delaying and killing energy projects, and snubbing our nose at Canadian suppliers, we will be placing our energy future and national security in the hands of OPEC and the head of Iran’s Revolutionary Guard. Ironically, by controlling the energy that fuels our nation’s economy, our enemies could bring the United States to its knees without firing a shot. We had better get our heads out of the clouds, come down to earth and face reality before it’s too late.
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By Don C. Brunell, President Association of Washington Business Americans live in an idealistic world where, no matter what happens, we’ll still be able to go home at night and switch on the lights or pull into a filling station and gas up the family SUV. Most folks — including many elected officials — don’t connect the dots. They somehow believe there are no consequences to killing a small biomass project in Vancouver, stopping a wind farm development because it spoils their view, taking a coal-fired plant off line, or opposing a natural gas or electric transmission line. There’s a smug attitude that we’ve always had all the energy we need, so we always will.
Random thoughts on saving the planet, Brett Favre and more There’s no doubt that social media has changed the way we live and do business. Since the major social media sites all cross post with each other anyway, what I read about Facebook considering a merger with You Tube and Twitter just makes sense. It would create one mega social media site the likes of which we’ve never experienced. One possible name — YouTwitFace. On Twitter, you don’t have “friends” — even imaginary ones — like you do on Facebook, or “connections” such as on LinkedIn. Twitter calls them “followers.” If you are the least bit paranoid, perhaps Twitter isn’t for you. Can’t you just hear the 911 call, “I think I’m being followed.” On the other hand, if you are at all burdened with delusions of grandeur, perhaps Twitter is just the thing for you. “I have thousands of followers…”
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I saw where former NFL great Brett Favre has urged Libyan strongman Muammar Gaddafi to step down, calling Gaddafi’s refusal to quit “desperate.” Farve was quoted in the Borowitz Report as saying, “I think there’s a time to throw in the towel, and this clearly is the time. What’s weird to me is that it seems painfully obvious to everyone but him.” Favre went on to say Gaddafi’s desire to hold on at all costs “…could wind up damaging people’s memory of all the good years he had. The spectacle of an old man hanging in there when he’s clearly lost it, well, there’s only one word for that: embarrassing,” he said. “It’s painful to watch.” Favre said that he feels so strongly about it that he reached out to Gaddafi, urging
him to retire. “He hasn’t responded to my texts,” Favre said, “but I’m used to that.” Did you happen to catch the Republican presidential debate in Iowa a couple of weeks ago? They haven’t said who won, but I suspect it was probably the folks who missed it. Early in 2010, I established a “Green Initiative” for the City of Port Orchard. One of the main goals was paper reduction. This was the result of a book I read called, 100 ways to save the planet. One of the very LARY COPPOLA first things it said, was to buy The Last Word less paper. So I returned the book. Speaking of “green” practices… Anyone who has stayed in a hotel anytime in the past decade or so has seen the little placard in the bathroom that says, “Help us save the planet.” It basically says that unless you ask otherwise, for the entire duration of your stay, they will not change your towels or bedding until they get totally skanky. What gets me is, if they really care so much about the planet, why is it when you checked into the room, all the lights were on, as was the big flat screen TV playing new age music videos with your name overlaid on the screen welcoming you? One thing to beware of is a practice called “Greenwashing.” It basically consists of claims by companies about everything
they’re doing to help save the planet. The good news is some of it is actually true. There is one claim that you see on a lot of products — “all natural.” What that means is that the product contains substances that occur naturally in our environment — meaning it could include things like arsenic, uranium, formaldehyde, and more. In other words, a soft drink that contains hemlock and arsenic might not be good for you, but it is, “all natural.” Isn’t it amazing how America has gone from being a colony owned by the British in 1776, to a free and sovereign nation owned by the Chinese in 2011. President Obama says he inherited all the problems in the economy. Personally, I just think he’s being exceptionally modest. Don’t you agree he deserves at least some of the credit? People who know me, know I’m a tech junkie, and early adopter of new technology. I have an Apple iPhone 4, and to be honest, it is the slickest device I’ve ever owned. Browsing the iTunes store, you will find there are literally millions of apps for all kinds of things — things like growing a virtual Chia Pet, one that allows you to accept collect calls from random prisoners, another that uses the GPS function on the phone to locate manhole covers, so you don’t stumble on them when you are walking and texting at the same time. There’s even one that shows which apps you’ve used once, and will never use again. There’s an app that lets you speak into your phone, and it will transcribe your voice into a text message, send the message
and sensitize your voice so the message can be spoken in your voice to the receiver. Is it just me, or isn’t this something like, ahhh, making a phone call? With all the uncertainty in the stock market, there is one bright spot — the downward arrow business is booming. While investors have seen steep declines in the stock prices of companies that build cars, computers, farm equipment and practically everything else, producers of downward arrows have chalked up double-digit gains, motivating investors to snap up their shares like never before. The word “ambulance” is written backwards on the front of every ambulance for a reason. Think about it… I’m a great believer in the “Pay it Forward” concept. The other day, I drove through the Tacoma Narrows Bridge toll booth and paid the toll for the guy behind me, as well as myself. Freaked him out. He had to catch up to me to see who I was and what the heck I was thinking. In doing so, he cut me off, almost getting both of us and another car in a wreck. I think I’ll just stick to doing it at fast food drive throughs. It’s way safer. In case you missed it, Texas Governor Rick Perry has climbed to about a neck and neck position in the Republican presidential polls with Mitt Romney. Do you think he has a shot? A governor from Texas with a cowboy mentality, who didn’t do very well in school. Do you think America would really ever elect someone like that?
The nation’s debt crisis in a nutshell Did you know that under Obamacare as it kicks in over the next few years you may no longer see your own doctor but will be subject to treatment determined by a team? I learned of this for the first time in an article in USA Today written by Kevin Pho, a ADELE FERGUSON primary care physician and Politics member of the newspaper’s board of directors. I haven’t seen it anywhere else although the New York Times is quoted on it. Rules proposed last March by the Department of Health and Human Services, says Pho, would encourage health providers to operate in teams. A patient’s trip to the doctor might result in treatment by a clinician from the doctor’s team, or a
physician assistant or nurse practitioner. Its called a Patient-Centered Medical Home where everyone involved would share information, work together and be jointly responsible for the patient’s care. It’s actually already being tried and according to a report from the American Academy of Family Physicians, patients were unhappy with the change. Many patients, according to the Times, “felt displaced as they saw the old one-toone doctor patient interaction replaced with one to four relationships involving not only the doctor but a whole host of providers.” No doubt adding to the patients’ distress is the fact that they have had no input. They are just being merged into the new system without being told about it first. Terry McGeeney, a primary care physician who led the Medical Home project, said, “the Achilles heel of all this is a lack of understanding and engagement” because someone forgot to inform the patients how
their health care would change. Pho says policymakers should do a better job of preparing patients for what to expect, inform them that they may not solely see their own doctor but other members of the health care team. Tell patients their health care information may be shared among others on the team. I’d go a lot further than that. Let’s repeal the whole damn Obamacare law and start from scratch with everybody involved in public discussions of what will work best. It was obvious from the beginning that hardly anyone in office or out favored the plan which was rushed through without being read in order to meet the new president’s time line for establishing his legacy. The longer we wait and fool around with this, the more provisions in Obamacare will kick in and be difficult to undo if repeal comes as a result of a new president and members of Congress next year. Now, another subject where we aren’t
being told the whole story. This is from the Wall Street Journal by Paul Peterson who directs Harvard’s Program on Education Policy. Even as the president was signing the debt limit bill, says Peterson, he was insisting on continuing “to keep making key investments in things like education.” What he didn’t tell us was that we already spend $12,922 per child annually and that investing more means higher taxes to pay the tab. When the public was asked if spending on schools should increase, decrease or stay the same, 65 percent went for more. When told of the current $ payout, only 49 percent were for an increase. Asked if taxes to fund schools should go up, down, or stay as is, only 35 percent were for an increase. That’s why the president and the spenders “forget” to mention the $12,933 or that increase means higher taxes. And that, says Peterson, “is the nation’s debt crisis in a nutshell.” (Adele Ferguson can be reached at P.O. Box 69, Hansville, Wa., 98340.)
Move your company to Port Orchard and you’ll discover a business-friendly city. With no B&O tax, the fastest permitting times and the lowest crime rate. To learn more contact Mayor Lary Coppola directly at 360-876-7025 or email themayor@cityofportorchard.us.
City of Port Orchard We welcome you to the most business-friendly city in Washington 216 Prospect Street • Port Orchard, Washington 98366 • www.cityofportorchard.us
September 2011 Kitsap Peninsula Business Journal•KPBJ.com 39
The Cost of Doing OPEN FOR BUSINESS Business in Port Orchard just looks, well, reasonable...