Inside Technology, pg 17 Real Estate, pp 23 Human Resources, pg 32 Special Focus Banking and Finance pp 6-15
Special Focus Golf and Recreation pp 25-29
Kingston Chamber of Commerce pg 16
Environment, pg 33 Automotive, pp 34, 35 Editorial, pp 36-38 Home Builders Newsletter,
May 2012 Vol. 25 No. 5
The Voice of Kitsap Business since 1988
pp 19-22
Bremerton entrepreneurs expand portfolio with Harvey’s purchase Alliance pitches Kitsap County’s aerospace potential to Cantwell
By Rodika Tollefson Scott and Stacy Ryan are the type of entrepreneurs who are hard pressed to turn down a new idea. The couple, who own six
Hallmark stores including three in Kitsap County, always have their ear to the ground for new opportunities. Their latest one was too good to pass up.
After all, it involved a well-known local business located just a few miles away from where both of them grew up. Last December, the Ryans became the new owners of Harvey’s Butter Rum Batter, a business started in Bremerton in the early 1960s by the late Harvey Hudson. The renowned brand is a common sight at area grocery stores during the winter holiday season and is also shipped all around the country. “My folks used to have it in their refrigerator,” Scott said. “I grew up just a few miles from the company.” Stacy, too, has a bit of a personal connection — her grandmother and uncle once worked with Hudson at a local Darigold dairy plant where he originally produced the batter after hours, using the Ryan, page 5
By Tim Kelly, Editor When the region’s aerospace industry that has Boeing as its epicenter expands, Kitsap County hopes to get a piece of the action by promoting the resources it has to offer here on the west side of Puget Sound. That’s the mission of the Kitsap Aerospace and Defense Alliance (KADA), which assembled a couple dozen boosters to tout the area’s potential to U.S. Sen. Maria Cantwell when she participated in a roundtable discussion April 13 at Bremerton National Airport. The airport was an apt setting, since it’s on a 1,200-acre expanse of land that’s available for manufacturing development in the Port of Bremerton’s South Kitsap Industrial Area. “We have the largest single piece of real estate for aviation development in the Puget Sound area,” port CEO Tim Thomson told Cantwell. When Boeing was looking at possible new sites last year for building its 737 MAX outside its main Seattle-area plants, the port offered SKIA for consideration, but that longshot bid didn’t get off the ground. It wasn’t the end of Kitsap’s efforts to position itself for a role in aerospace expansion, though. “Our opportunity was to support the supply chain,” noted Thomson, who is cochair of KADA along with John Powers, Aerospace, page 17
Peninsula Credit Union hires new CEO Peninsula Credit Union has selected Jim Morrell as its new President/CEO. He brings more than 20 years of financial experience to Peninsula CU, including 17 years working in the credit union industry. His most recent position was Senior Vice-president, Support Services at iQ Credit Union in Vancouver, Wash., where he has worked for the last 14 years.
Morrell will be replacing Peninsula’s outgoing CEO Steve Gorseth, who will be retiring in June. Morrell has a master’s degree in management from W i l l a m e t t e University in Salem, Ore., and a bachelor’s Jim Morrell degree in economics from Pacific Lutheran University in
Tacoma. He was recognized as 2010 Distinguished Credit Union Professional of the Year by the Washington Credit Union League, and the 2008 Information Technology Executive of the Year by Credit Union Times. He also is a member and past chairman of the Credit Union National Association Technology Council. Peninsula CU has five branches with assets of $150 million and approximately 20,000 members in the West Puget Sound area, and will soon be broadening the
access of their membership with the addition of shared branching. “Along with the tremendous staff at Peninsula CU, I look forward to the opportunities to serve our members and the communities across the Olympic Peninsula as the financial advisors people look for in a trusted financil institution,” Morrell said.
Olympic College hires chef as new catering director Olympic College has hired chef Nancy Aala as the new catering director. A graduate of the prestigious Culinary Institute of America located in Hyde Park, N.Y., she she brings knowledge and culinary experience from her work with world-class celebrity chefs such as Julia Child and Stephan Nancy Aala Pyles. As OC’s catering director, Aala will lead students from the college’s Culinary Institute to cater events of all sizes, from small parties to large banquets, receptions and weddings. Olympic College’s catering service is available to the public. For information, email Aala at naala@olympic.edu or call 360-475-7552.
2 • Kitsap Peninsula Business Journal • KPBJ.com May 2012
New commercial loan officer joins Kitsap CU Kitsap Credit Union recently welcomed Jeff Slater to its Member Business Lending department, which specializes in commercial real estate loans to local businesses. “Jeff Slater has a lot of experience in business lending, having previously worked with both national and community financial Jeff Slater institutions.” said George Hall, Senior Vice President of Lending at Kitsap Credit Union. “But what really makes him an asset, and a good fit for the Credit Union, is his focus on people, relationships and the community.” Slater will be based at the Silverdale Highlands branch on the corner of Ridgetop Boulevard and Myhre Road, and he can be reached at 360-662-2201. Kitsap Credit Union is a nonprofit financial cooperative serving a membership of more than 80,000 from 17 local branch offices. Membership eligibility is open to those who live and work in Washington State. Its website is kitsapcu.org.
Keating among SMB top influencers for 2012 Doña Keating, president and CEO of Professional Options, has been named to the 2012 SMB 150, representing the top 150 influencers within the worldwide Small & Medium Business IT channel. "This year's SMB 150 has been an energizing experience, so it's exciting to be able to finally share the results," said Harry Brelsford, founder and chairman of SMB Nation. "What struck me the most about this year's list is its inclusion of channel members from all over the world; it's a real reflection of the diversity and strength of our worldwide community." A three-part process determined this year's. The competition began with an open nominating process, followed by the SMB IT community voting on the nominees at www.smb150.com. In addition to the community vote, a panel of industry experts judged each nominee based on a variety of relevant areas. The community vote accounted for 40 percent of each nominee's overall rating, with the Doña Keating expert panel's decision contributing the other 60 percent. The 150 winners will also be invited to join SMB Nation and SMBTN at a gala event in Los Angeles on May 16 at the Westin Bonaventure. Each honoree will receive a complimentary 64 GB PlayBook, courtesy of BlackBerry, the title sponsor of the event, which will also be sponsored by Oki Data Americas and Quest Software. "I am grateful to voters and judges for my selection in this year's list, and to SMBTN / SMB Nation for the overall honor," said Keating. "All nominees are winners in my eyes."
AmericanWest Bank hires new branch manager on Bainbridge Island
Linda Lincoln
AmericanWest Bank has hired Linda Lincoln as Bainbridge Island Branch Manager. Lincoln has more than 35 years of banking and financial services experience, including previous experience as a branch manager. She is currently a member of the Greater Poulsbo Chamber of Commerce and is an active community volunteer. The Bainbridge Island branch of American West Bank is at 921 Hildebrand Lane, and Lincoln can be reached at (206) 842-6929. AmericanWest Bank is a business-focused community bank headquartered in Washington with 41 branches throughout the state and 70 overall.
Olympic Printer Resources adds another veteran to its staff to head repair services
New publication focuses on area’s veterans A new monthly publication will focus on Kitsap County's large population of military veterans. Sound Publishing launched Veterans Life in March, and the paper will be distributed at locations throughout the county. Subscriptions are available by calling 360-308-9161.
May 2012 Kitsap Peninsula Business Journal • KPBJ.com 3
Veteran-owned Olympic Printer Resources, Inc. of Kingston welcomes Mark Witherell to its staff. Witherell, a retired Navy Master Chief Electronics Technician, will head the company’s printer repair services department. He served in the Submarine Force and recently retired from the staff of Commander, Naval Forces Africa. Company president Jeff Petersen, a 1974 graduate of the U.S. Naval Academy and a former nuclear submarine officer during the Cold War, likes to hire veterans. “Over threefourths of our staff members have served our country in the armed forces,” Petersen said. “My experience is that employees with a military service background are conscientious, have a proven ability to learn new skills and concepts, have good attention to detail, and can be trusted to do a good job right the first time.” Petersen’s business partner and co-owner, David Lucas, a retired Navy warrant officer, agrees, “Based on their service experience we find that our veteran employees are missionoriented, have integrity, and really get the concept of teamwork.” Eight of the 11 local employees at Olympic Printer Resources are veterans. Olympic Printer Resources was started in 1993 by Pete DeBoer, a retired U.S. Coast Guard. The company remanufactures Brother, Canon, Hewlett Packard, and other brands of printer, fax and copier laser toner cartridges. The company also provides laser printer repair services and computer IT services. The business is located in the Arbor Business Park, 26127 Calvary Lane NE, off Bond Road between Kingston and Poulsbo. For more information on Olympic Printer Resources, contact the business at 360-2978384 or 800-689-5488, via email at sales@olyprinter.com or at www.olyprinter.com.
Custom Neon moves from Poulsbo to Port Hadlock Custom Neon, currently located at 5686 NE Minder Road in Poulsbo, is relocating to Jefferson County on May 1. The new address for the business will be 11602 Rhody Dr. in Port Hadlock, and the new phone number is 360-860-0584. Custom Neon specializes in custom-designed and fabricated neon window signs and neon art. Owner Laurie Lewis has operated the business for 13 years in the North Kitsap area and will continue to service the Kistap County area in addition to tapping into new markets in Jefferson County.
Kitsap Cancer Services sets date for Golf Challenge The 2012 Kitsap Cancer Services Golf Challenge will be held Saturday, Aug. 4, at Kitsap Golf and Country Club in Bremerton. KCS will be bringing back some celebrities from previous years to participate in the event, including Jim Lambright, longtime UW defensive coordinator who also was head football coach in the 1990s. He has been a longtime supporter of the cancer nonprofit that provides support services for people and families living with cancer in the Kitsap community. Other celebrities confirmed for the event are former WSU quarterbacks Jack Thompson, Drew Bledsoe and Mark Rypien. For more information about the event, go to www.kitsapcancerservices.org or call Wally at (206) 715-1819.
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Heads Together: A guide to collaboration from kids By Dan Weedin Last month, I visited Breidablik Elementary in Poulsbo to talk to 3rd, 4th, and 5th graders about writing. This is a “split” class where the different grades all mesh together to form one class. Ms. Hendricks is a fabulous teacher and the fact that she can work with such a diverse range of ages is a testament to her skill. That is a business lesson for another month. The kids were studying creative writing skills and story creation in class. Ms. Hendricks knew my work as a business writer and thought I could bring perspective on how and why I write for business. Let’s just say that by the end of the hour, they had brought me perspective. I am self-aware enough to know that I wasn’t as smart as these kids between 3rd and 5th grade. These young students have a vastly larger vocabulary than I remember having. They are disciplined, well behaved, and follow instructions. Maybe it was partly because I was there as a guest, however kids are pretty transparent. It was impressive. Here was my big takeaway. These kids put what they learned into practice immediately in a clear, concise, and highly effective way. How they did it is really the topic of my column this month. It’s a concept that I now call “heads together.” Ms. Hendricks would allow me to read an excerpt from one of my columns featuring the ramblings and musing of my canine pal, Captain Jack. She thought that the kids would be interested in the concept of writing from the perspective of a dog. When it came time to ask me questions, she would exclaim, “Heads together!” At that moment, about 35 students would turn to their “colleagues” next to them and start collaborating. They would query, comment, and make suggestions to each other. She allowed this for about a minute and a half, and then quickly brought them back with just the raise of a hand. (Note – I’ve tried this ‘bringing back’ tactic later with adults. It doesn’t work as well…). They responded by asking me really good questions, giving thoughtful compliments, and essentially providing a better and more efficient learning environment. Any time a question came up, Ms. Hendricks would say, “Heads together,” and they would collaborate. It was astounding. Just think what adults could accomplish if we did that! So, why can’t we? What holds us back from a desire to learn and improve; to put into practice what we do learn; to collaborate with others; and to seek out the best for everyone involved? Can we
more effectively run our organizations if we do? Collaboration is critical in business. The reason is because we can’t be brilliant by ourselves. We need the firepower of each other to stimulate the creative juices; learn and master new ways of working; become thought leaders; stay on the cutting edge; and create an environment where people like to work. Here are seven suggestions on how to get started… 1. Have a strong leader. Every organization needs a leader like Ms. Hendricks is for her class. You must identify that talent in your organization. 2. Find time to collaborate. Time isn’t a resource issue; it’s a priority issue. If building a stronger organization is a priority, you will find the time. 3. Create expectations and provide direction. Let them know why this is important. 4. Promote a healthy environment where everyone’s voice can be heard without fear of humiliation. 5. Act on ideas. The worst thing you can do is to ask them to collaborate and discard all their ideas. 6. Be patient. If you’ve been reading my columns, you will know I preach patience in change. 7. Have fun. Having fun at work is a novel concept. It actually makes for better culture, more productivity, less turnover, higher employee morale, and a whole bunch of other positive things. You may ask, “what if I work alone?” I resemble that question! Those of you who work without employees, collaboration is even more important for you! I currently belong to a mastermind group of six consultants; a professional consulting community that numbers well over a thousand; have a personal, professional mentor; belong to a regional group that meets three times a year, and have an accountability partner. We work on the “heads together” concept constantly. If I weren’t part of these groups, I’d not be where I am today. Don’t be a lone wolf. Remember, wolves need the pack. Bottom line — maybe we need to go back to being kids. I often think the transition from childhood to adulthood loses something in the translation. Perhaps if we find it, we will all be better off. Okay everyone, “Heads together!” (Editor's Note: Dan Weedin is a Poulsbobased management consultant, speaker, and mentor. He helps entrepreneurs and small business owners to significantly transform their businesses and their lives. He is one of only 24 consultants in the world to be accredited as an Alan Weiss Master Mentor. Reach Dan at (360) 697-1058, dan@danweedin.com, or visit www.danweedin.com.)
RYAN
women who sell the products through home parties and events. She said the reason she’s able to extend her time to several businesses is the staff at McBride’s Hallmark. “I tend to be a perfectionist and I want things to be right. There’s no way I could have done it without them,” she said. Many of the staff are long-timers — the officer manager, for example, has been with McBride’s Hallmark for 25 years, and for her anniversary the Ryans treated her to a cruise. “Our staff is unbelievable. That’s probably the No. 1 reason we’re still in business,” Scott said. Another reason they’re still in business
is perhaps the couple’s creativity. Not only do they like working with each other, they like exploring new ideas to keep things fresh. “We have the joy of making decisions, and sometimes it’s as quick as you want,” Stacy said. “And we get to work together, which is nice.” Growing Harvey’s while running the other businesses will keep the Ryans plenty busy, but they’re not discounting the idea of adding a new venture to their portfolio in the future. “I’m always looking for something, like businesses that are for sale,” Scott said. “You never know. It’s fun to see what you can do with things.”
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May 2012 Kitsap Peninsula Business Journal • KPBJ.com 5
from page 1 cottage cheese topper for filling the tubs. In 1972, he moved production to the current factory, which he built. “We still use the old Darigold topper to fill the containers,” Stacy said. Hudson developed the recipe for making hot butter rum drinks when he was a bartender, and it became so popular that a few years later he turned it into a full-time business. He was involved with the factory until about a month before his death in January 2011 at age 94. The Ryans were among several people who made an offer to buy the business from Hudson’s children. “It’s a great brand that can be expanded. The family we bought it from was great,” Scott said. “They had multiple offers for the business — we feel fortunate we were selected.” While keeping Hudson’s legacy alive and planning to be involved hands-on with the factory, the Ryans are already looking at ways to expand. Some of the equipment will be upgraded to make production more efficient, but their biggest dream is to move the business beyond a seasonal affair. One step toward that goal is creating a cookbook with year-round recipes. Stacy is developing the recipes, which use Harvey’s Butter Rum Batter for everything from glazed salmon and cookies to lattes. The cookbook, along with T-shirts and other brand memorabilia, will be available on the company’s website, www.harveysbrb.com, this summer. Another step will be the creation of other product lines such as chocolate spoons, candy or caramel. “We love the flavor of the product but we’re looking at developing other products to extend the season,” said Stacy, who will recruit her sister, a pastry chef, to help come up with ideas. Serial entrepreneurs The Ryans have been working together for several decades, but they’ve known each other their entire lives. Their families lived within a couple of miles of each other and their parents saw each other socially. Scott, who has a business degree, grew up in an entrepreneurial environment — his parents opened their first Hallmark card store in 1968. He went to work for them after college, with no intention to stay long, and ended up helping them expand the business to five stores. Scott and Stacy bought the company from his parents more than a decade ago, and McBride’s Hallmark had eight locations during its peak. The six they own today include stores in Port Orchard, Poulsbo and Silverdale, which is the company’s headquarters. “The opportunities (to grow) organically presented themselves,” Scott said. “It’s a fun business to be in.” Stacy serves as the buyer and merchandiser, among other things, which compelled her to venture onto another path. Using her experience to
design collections for the store as well as source products, she pursued an idea that’s been in the making for several years: launching a jewelry business. She founded Stacy McBride Collections using a direct-sale model, after presenting her idea to Scott about eight years ago. She tested it in the Kitsap market, tweaked the model to make it scalable, and last year took it nationwide. She currently has 20 women distributing it as far as Florida. The jewelry and accessory pieces are mostly priced in the $9-$79 range, and Stacy designs many of them herself as well as sourcing some. She provides business support and mentoring to the
Commercial loans seeing increased interest
6 • Kitsap Peninsula Business Journal • KPBJ.com May 2012
By Rodika Tollefson Craig and Wendy Gurney have been in business for five years, providing tile installation service. Their Poulsbo business, Gurney’s Tile Work, has done well despite being a startup in a downturn — so well, in fact, that the couple decided last year to expand by opening a showroom. “The timing was good. We felt like if we didn’t do it, somebody else was going to capitalize on it,” Craig Gurney said. Gurney had borrowed a small amount for tools when he first got started, and the couple decided they would borrow $35,000 for the expansion. The requirements were “more strict” this time, Gurney said, but they worked through various spreadsheets as well as looking into SBA paperwork, and started talking to several banks. The couple recently opened their showroom off State Route 305 and may be adding another employee soon to the three they have already. “Since last September, I’ve been absolutely slammed. I couldn’t believe how much work we’ve had,” Gurney said.
In the end, the pair decided to bootstrap their showroom addition and did it through “blood, sweat and tears.” The reason, Gurney said, was because the bank wanted to lend double the money they asked for, so half of it could be working capital that would essentially sit in an account. Had they decided to pursue it, however, it would have been even easier to qualify in the end since last year was the best one financially the business has had. “They would have wanted us to step up to the plate more last year than this year,” he said. Elaine Jones, certified business adviser with the WSU Small Business Development Center in Bremerton, said the Gurneys’ situation is an example of the trends she’s been noticing in the past few months — not only are business owners more optimistic, they are also on better financial footing. “They are optimistic and doing well,” she said of the Gurneys. “They’re feeling it’s a good time to start because the economy can support a business.”
Craig and Wendy Gurney Jones saw more than 130 companies last year and said those people coming through the door are doing their homework. “I feel like I’m seeing a more promising set of people,” she said. “I have more expansion clients (who) are taking on more than they would have two years ago. … I think lending is still tighter than it was before but I think the mood has changed, both on the bankers’ side and the people taking on the debt.” That mood is reflected in national numbers. The U.S. Department of Treasury issued a report in April that showed lending through the Small Business Lending Fund increased $1.3 billion in the last quarter of 2011. More than 80 percent of local banks and community development loan funds reported growth in their lending under the program. Locally, the banks are seeing a slight increase in interest as well, along with an increase in qualified borrowers. “We are seeing just recently an uptick in people wanting loans. 2011 was a turnaround year for a lot of businesses, so people are coming in to refinance, start up, expand or build,” said Leslie Peterson, senior vice president and chief lending officer at Liberty Bank in Poulsbo. The banks are doing very little unsecured financing, so they are requiring more collateral than in the past. And while cash flow is still the primary aspect, lenders are now also looking at the worst-case scenario — if the loan defaults, how can the debt be liquidated so the bank can collect on it. “The underwriting is more extensive than it’s been historically,” Peterson said. Interest rates are holding low, between about 4 and 6 percent for some programs, which makes this an attractive time to borrow. “We definitely have money to lend and would like to be lending more,” said Steve Politakis, executive vice president and chief
credit officer for Kitsap Bank. He said what’s changed is the environment — it is much more positive than it was a year or two ago. Commercial real estate, as one example, is the best it’s been in five years. “It’s nothing like how it was back in the boom years but it’s definitely much more positive,” he said. The medical and professional industries seem to be doing well, with more businesses looking at owner-occupied building projects. Many businesses are also doing upgrades and replacing equipment, taking care of things that have been deferred during the downturn. Politakis also noted an increase in the number of qualified borrowers. “We’re seeing an uptick in improvement in earnings. In ’08-’09, businesses were losing money or had marginal income,” he said. “We are seeing more people qualifying today.” For established businesses, lenders are looking at things like whether they were profitable for the past three years, what collateral is available (with more equity required than in the past) and whether they owe more on commercial real estate than it’s worth (which is common currently). “Consumer construction has a huge uptick. It’s an area that hasn’t had a lot of activity in the last few years and there’s pent-up demand,” Peterson said. “The commercial market is probably six to eight months behind, or it could be into 2013 (before it follows).” The apparent rebounding of the consumer side could be good news for the commercial lending market but bankers are still treading lightly. “Hopefully housing prices are approaching bottom but could they dip further? It’s a possibility — there are still consumer concerns out there,” Politakis said. “I’m cautiously optimistic. Banks are seeing more positive things out there.”
No cash – by design! Not everyone is fighting the change. The Carl Gustaf Church in Karlshamn, Sweden, has responded to the requests of cashless worshippers. The church installed a card reader for donations. It seems to be a natural transition since the Swedes use bills or coins for only 3 percent of their transactions. In general, Europe is already 91 percent cashless and the USA is 93 percent cashless. What’s next? A RFID chip embedded in your hand? Some of the discontinued currencies will be stashed as mementos or saved for
a possible digital meltdown. Just consider Spain. Spaniards have been hurt by Eurozone financial problems. However, the peseta, which remains legal tender, is being brought out of hiding by hoarders of the old currency. Retailers, preferring not to barter and eager for any transaction, are willing to accept it. When needed, the peseta can be exchanged for the euro through regular banking channels. If Spain’s debt problems are not quickly resolved, the need to do so may rapidly disappear. No cash. No currency. That leaves barter.
That’s cashless, and isn’t that where this all began? Send comments or questions to Don@DonCreech.com. Sources:http://www.cbsnews.com/8301202_162-57399610/sweden-movingtowards-cashless-economy/ http://www.commercialappeal.com/news/2 012/mar/31/canada-pennys-about-drophistory/ http://www.bbc.co.uk/news/world-europe12657225 http://www.walmart.com/cp/Pick-UpToday-Help/1072691
May 2012 Kitsap Peninsula Business Journal • KPBJ.com 7
By Donald Creech Ever since the IBM-PC replaced my first computer, I have generally been an early adopter of software and hardware. New technology has usually been an enhancement to business and family life. However, a recent stop in a mini-mart caught me off guard as I watched the young teenager ahead of me. He had his snacks on the counter and was on his cell phone. What I thought was an inconsiderate time to make a phone call was actually a transfer of funds to the store’s cash register. The clerk said, “Thanks. I have it.” The kid smiled, grabbed his candy and left. I knew it was technologically possible but had not seen any one “buy on-line” in a retail establishment using a smart phone. So, I no longer consider myself an early adopter. I am way behind the curve when considering my smart phone to be a portable ATM. The Y-Generation apparently has no second thoughts about embracing a cashless society. Their world view is through a digital lens. Think about all the new money our government has “printed” to pay for economic stimulus. The money isn’t really printed. It is just new accounting entries creating “deposits” for the “too big to fail” banks. There is no cash involved. Cash is a problem for the government. Not only can it bypass the tax collector, but in some cases, it costs more to create than the wealth it represents. Canadian Finance Minister Jim Flaherty recently told the AP that a one-cent piece costs one and a half cents to produce, totaling about $11 million annually. In legislative hearings on the issue, no one opposed abandoning the penny coin. It will remain legal tender until it disappears from circulation. Businesses will just round off (up) prices. Canada is not an early adopter. New Zealand, Austria, the Netherlands, Finland and Sweden have already adapted to “penny-free” economies. The US Mint has the same economic problem of producing coinage at costs greater than the coin’s value. Watch for “coin free” at a store near you. Sweden has moved even further. Paper currency has been used in Sweden since 1661. It is actively moving toward the elimination of all paper currency. Senior citizens in smaller towns are understandably frustrated when their own banks no longer operate with cash. Whether lacking a credit card or not understanding electronic transfers, the cashless society is complicating their lives. Even in the USA, not everyone has a credit or debit card. That has become a marketing niche for www.WalMart.com. “Pick Up Today is a free service that allows you to order store items online and pick them up at your WalMart store that same day…” That’s even faster than Amazon.com.
SBA – A viable avenue of financing
8 • Kitsap Peninsula Business Journal • KPBJ.com May 2012
By Kerry Keely Small business owners rely on many forms of financing to assist with opening their businesses and to fund ongoing growth. Typical financing requirements include: working capital, equipment and other short-term fixed asset needs, as well as major capital expenditures like buildings and tenant improvements. While the majority of new businesses are self-financed, there are a variety of other funding methods. Primarily, these funding sources come either in the form of debt (loans) or equity (stock). Numerous financing sources exist including: relatives, friends, hard money lenders, capital finance intermediaries, angel investors, and banks. The most popular of these are relatives and friends. However, taking money from people you know can come with many strings attached. Therefore, quite often, other alternatives are sought. Another popular place to turn for assistance is the U.S. Small Business Administration (SBA). Established in 1953 under the administration of President Eisenhower, the SBA and their partners can offer invaluable guidance and support through the formation, development and
early growth stages of a “for-profit” business. Unfortunately, nonprofit entities are not eligible for SBA financing. SBA’s resources can be accessed online at www.sba.gov and through assistance centers such as Small Business Development Centers, SCORE, Womens’ Business Centers, Veterans Business Outreach Centers, US Export Assistance Centers and Procurement Technical Assistance Centers. Most of these offer their services free of charge. The SBA also works in partnership with banks and other financial intermediaries. We’ll talk more about that later. During the most recent economic downturn, sources for loans contracted, and in some cases perhaps evaporated, as economic uncertainty gave rise to a perception of increased risk associated with commercial financing. At the same time, banks began to experience problems with real estate and other business loans. These troubled loans then began to fuel the ultimate failures of many banks nationwide. The survivors came under new levels of regulatory scrutiny with increased liquidity and capitalization requirements, which slowed the outflow of new loan dollars.
Gary Lucy / CPA, CFP • Alison Fong • Brian Cox • Don Cox / CPA 360-876-1938 • 1590 Bay Street, Port Orchard • pacificasset.com
Fortunately, signs of economic recovery and growth have begun to emerge nationally. These are indicated by rising employment, shrinkage of new jobless claims and increased home sales activity. We can now see many of these improvements locally, too. For Sale signs are being decorated with banners that say “Pending” and “Sold.” These are a welcome sight for the sore eyes of realtors, lenders and neighbors everywhere. In addition, there are indications of increasing construction activity. Thankfully too, loans are now more readily available than a few years ago and interest rates remain at historically low levels. As a result, more borrowers can qualify for loans today to take advantage of the reduced price points in the real estate market. Economy watchers have long awaited the return of business lending as a signal of the recovery, and recent results are very encouraging. The Federal Reserve recently said that business lending across the board increased 10 percent last year after two straight years of declines. But many of the country’s smallest businesses are still struggling to improve their sales and pay down debt. The U.S. Small Business Administration has taken an active role in commercial business lending by providing loan guarantees. During the recession, SBA offered significant incentives, increasing guarantees and waiving fees; and it continues to offer special refinancing terms during this post-recession recovery. In the deepest trough of the recession, Washington D.C. did its best to prop up financial assistance to small business through innovative programs it launched through the SBA. Origination fees were waived for a period of time and guaranty percentages were increased on some programs. As a result, SBA related lending increased, and potential borrowers learned more about the benefits of the SBA and its programs through heightened media coverage. One might ask: If money is now readily available for business loans, what benefit is there to utilizing SBA as a financial partner today? A common misconception is that the SBA makes loans. In fact, the SBA doesn’t have lending staff or funds to originate loans. SBA generally works through financial intermediaries. These are banks, finance companies, Certified Development Companies and nonprofit community service-based organizations. SBA offers too many loan programs (fourteen at last count) to describe here. So we will discuss just a few of the most commonly used ones. A full description of the SBA’s loan guaranty programs can be found on their website at www.sba.gov. Okay, you say to yourself, “this sounds like a smart way for a lender to do business, but what makes SBA a viable avenue of financing for me?” Let’s first understand
that start-up businesses have greater risk. Small loans and SBA Microloans under $50,000 for new and existing businesses are available through nonprofit lenders such as Washington C.A.S.H. and Community Capital Development. For larger SBA loans for expansions and business acquisitions, SBA has two very popular loan programs. In its flagship 7(a) program, the SBA provides a government guarantee (rather than loan proceeds) for a portion of a lender’s loan. The amount of the guarantee varies by loan type, amount and other factors. There is shared risk between the lender and the SBA, with the lender taking the risk of loss on the unguaranteed portion of the loan. For example, on the maximum SBA 7(a) loan amount of $5 million, 75 percent of the loan or $3.75 million carries the guaranty of the federal government. For loans of $150,000 or less, the amount of the guaranty is 85 percent. Loan proceeds can be used for expansion/renovation; new construction, purchase of land or buildings; to purchase equipment, inventory, leasehold improvements; working capital; or debt refinance. Terms can vary from five to 10 years for working capital, equipment, etc.; real estate terms can extend to 25 years. Borrowers are generally required to provide a 10 percent equity contribution at a minimum. The loans are principally originated by banks. Another commonly used program is the SBA 504 loan. These loans are intended for longer-term fixed-asset financing. There are two types; a 10-year loan and a 20-year loan. The 10-year is typically used for major heavy equipment finance and the 20-year for commercial real estate. Historically, 504 loans could only be used for new purchases; however, as a result of the Jobs Act, a temporary refinance program is in effect until September 27, 2012. The program allows up to 90 percent financing, which helps keep precious capital in the small business borrowers’ hands. The bank usually provides 50 percent of the financing and SBA 40 percent, with 10 percent equity (down payment) coming from the small business. So, the SBA 504 loan program features a low down payment and low, fixed interest rate for a substantial portion of the borrowing requirement. The loans are funded through the sale of fixed-rate, government-guaranteed bonds (known as debentures). Because debentures are fully guaranteed by the U.S. government, interest rates track with liketerm U.S. Treasury Securities. While fees are added to the debenture rate for SBA, page 13
Young and money-wise saving to investing — or opt for a complete series. For students who go through the entire curriculum, the credit union does pre- and post-testing. Cathy Brorson, Kitsap CU outreach coordinator, said last year there was a 28 percent increase in the post-test scores vs. pre-test. In total, KCU reached more than 3,000 students through 107 presentations. Additionally, the credit union has student-operated branches at three area high schools. Over the past couple of
years, at least seven new hires came through those student-run branches, and more were hired for summer employment. “We offer these programs to a diverse group of people with the hope of reaching them at a younger age and help them be better money managers,” Brorson said. The youth-oriented programs include Kids Club, which gives youngsters a way to start saving at an early age, and varsity checking, which allows teens to open checking accounts complete with debit
cards. KCU also partners with other organizations such as Coffee Oasis to offer financial literacy. Miller said it’s important for young people to start thinking about money matters before they become adults and go out on their own. “We don’t push any products but we tell them about the options and what the products can do for them as consumers,” he said. “A lot of what we do is … looking at it for the long term so they can invest their money wisely.”
May 2012 Kitsap Peninsula Business Journal • KPBJ.com 9
By Rodika Tollefson Declan Krafsky is only 11 years old, but he already understands the ups and downs of the stock market. The sixthgrader, who is homeschooled, saved up $80 from birthdays and odd jobs and a year ago invested it into Intel stock. He has reinvested the money continuously, and figured he probably made a few dollars. Now, he’s considering whether to invest another $100 he has saved up. “I don’t like spending money that much,” he said. “If I save enough, maybe I can get through college, start doing something and then retire early.” Declan was partially inspired to invest money by his grandmother, who purchased $50 worth of stock when she was young and by the time she remembered about it, the stocks were worth $10,000, he said. And Declan knew how to get questions answered, too — he solicited help from his mother’s financial adviser before choosing a company. His father, Dave Krafsky, said he encourages all his four kids to get this kind of exposure while they’re young. This generation will not have Social Security income to rely on, and they need to understand the meaning and the power of money, he said. “I absolutely love my kids, but I want them to understand how important this is and they shouldn’t expect handouts,” said Krafsky, who works at Liberty Bay Auto. “I think in today’s economy, all the different vehicles we have for putting away money for the kids are great but I also think they (the kids) need to have some skin in the game.” Declan’s older sister saves money to buy her own things, including clothes and a laptop. All four kids have bank accounts, and once the two younger ones are ready, Krafsky said as a parent he will be there to answer their questions. He feels financial conversations are as important as one-on-one talks about religion or weapons — parents need to give their kids the personal attention and guidance. “At 16 or 18, it’s too late for them to learn to save,” he said. “As long as they have the ability to understand it, they’re never too young.” AJ Miller, a Kitsap Credit Union marketing specialist who facilitates financial literacy classes at local high schools, said from his experience in the classroom, he believes middle and high school students are eager to understand financial issues. “It’s on their mind, they want to know what they can do,” he said. “They hear all this information and see commercials, and they want to learn more.” Miller is one of the KCU instructors who offer financial education presentations as well as classes that are incorporated into the curriculum at schools throughout the Kitsap Peninsula. Teachers can choose individual topics — which range from careers, credit and
Edwards Jones advisers handle much more than money
10 • Kitsap Peninsula Business Journal • KPBJ.com May 2012
By Rodika Tollefson In a typical week, Soks Martz spends as many as 20 hours on community service work, in addition to working full time and running a farm with her husband — a selfsustaining farm with about 130 animals from pigs to cows. Her main activity outside of work is running the Christmas in the Country annual self-guided arts and crafts tour on Bainbridge Island, and she’s also involved with Relay for Life, Kitsap Arts and Crafts and other organizations. “I allocate time (to volunteering) every day after work,” said Martz, who is a branch office administrator for Edward Jones Investments in Kingston. “I go home and my day is just starting. I also commit my weekends to community work.” Martz has been involved in community service work for many years and has continued that involvement when she started working at Edward Jones five years ago. Some projects, for groups such as Rotary and Boys & Girls Club, she does jointly with her boss, financial adviser Clint Boxman. “People see us as a team and as a team
being involved in the community, it shows we have cohesion,” she said, adding that she gets to know many clients better by participating in activities they’re involved with as well. Boxman has a long list of his own activities, from Rotary president to member of several boards. And he is not unique among Edward Jones agents — many of the advisers at the local branches have similarly busy community service schedules. “Edward Jones creates a culture where volunteerism is supported and encouraged,” said Todd Tidball, whose office is in Poulsbo. “Each person can use his or her own strengths to give back.” Tidball’s strengths include public speaking, so for four years he’s served as the emcee for the North Kitsap Sports Boosters’ annual banquet as well as the announcer for the Viking Days parade. He’s also past president of Poulsbo Rotary, current president of Rotary Club Foundation, chair of Rotary’s annual auction, board member of Life Line (SP?) Homes and local Santa for the fire department, among other things. When he moved to the area from St.
Louis, where he worked at the Edward Jones headquarters, Tidball wanted to become involved so he started with Rotary. “One thing grew upon the other and put me in touch with like-minded people,” he said. He acknowledges that it can be challenging to spend so much time on volunteer activities while making sure all clients are taken care of, so that means compartmentalizing things and spending time wisely. “The type of people that gravitate toward a career with Edward Jones are the type that like to give back to their communities and make them a better place to work and live,” he said. Jessie Nino, an agent who works in the same office as Tidball, concurs. She said this type of career attracts people who are passionate about their community. “Any way we can find to serve our community is definitely part of the Edward Jones culture,” said Nino, who became a financial advisor a year ago and previously worked as an engineer for 10 years at Keyport. Her commitments include being a
judge for Destination Imagination at Klahowya Secondary School and a board member of the North Kitsap School District Citizens Budget Committee. She also gets to use her training as a Lean Six Sigma ?? consultant by working with small businesses to help them become more efficient. “We have complete flexibility because we’re each responsible for our own schedule,” she said. That flexibility is what attracted Anji Sell to the idea of becoming a financial adviser more than seven years ago. Sell, whose office is in Silverdale, is past president of the Silverdale Chamber and is involved with the YWCA advisory board, Central Kitsap Food Bank, Kiwanis, Therapy Dogs International and other groups. “These are all my passions,” she said, adding that she grew up in the South, where helping others is part of the lifestyle. She said her work helps her be connected with the community’s needs because she gets to know her clients and their own passions. “My career allows me to do things to give back,” she said. “You work hard because you have a small business but then you have that ability to manage (commitments). It’s probably one of the biggest reasons why I love my job, next to the people.” Brian George, whose office is also in Silverdale, said the Edward Jones model is to have a neighborhood branch with people who live locally. “They do what other people do — they contribute to their neighborhood,” he said. George’s biggest contribution comes through music — he plays the bass guitar for Freestyle, a local band that performs at various fundraisers and events. Since becoming an Edward Jones adviser in 2008, he has also been sponsoring Toys for Tots, getting all his customers involved in donations, and later added a collection barrel at the office for Central Kitsap Food Bank as well. “Every year, we send Thanksgiving cards to say thanks to our clients, and in there we include a flyer about Toys for Tots. Every year, we fill up the box and sometimes we fill it twice,” he said. He was glad to see a regionwide effort this past holiday season for all Edward Jones offices in Puget Sound to be Toys for Tots collection points, and hopes it becomes a new annual tradition. “There’s more to what we do than handle money. We connect with other human beings,” he said. “It does a lot for me personally, being able to reach other people. It benefits others but it also benefits me, it helps me continue to be a better person.”
One of the biggest risks to your retirement security: Inflation By Jason R. Parker At Easter dinner, we were talking about how much things cost, namely healthcare. My good friend and mentor, Dean, had recently told me he purchased his first home for $12,000. Then my father-in-law chimed in and said their next door neighbor recently purchased a new sewing machine for $10,000. We all kind of chuckled and made comments like, "I wonder if you can drive that sewing machine to work?" Isn't it crazy to think how the purchasing power of the dollar has lost ground in the last 40 years? The Bureau of Labor and Statistics has an inflation calculator, and when I ran the calculator it said $10,000 in 1970 had the same purchasing power as $58,676 in 2012. One of the most important concepts I teach is retirement is all about cash flow not net worth. Your income determines your lifestyle in retirement. If your income is fixed and is not adjusted to keep pace with inflation, then how will you sustain your lifestyle during the next 20 or 30 years? I meet with people who tell me due to stock market volatility in recent years the amount of money they have invested today is about the same amount of money they had invested 4 or 5 years ago. If you have the same amount of money today that you had four or five years ago, then is your purchasing power keeping pace with inflation? Once upon a time you could retire and just buy a basket of municipal bonds and live off the tax-free interest income. Unfortunately in today's ultralow interest rate environment that type of strategy just won't work for most of us. As more and more baby boomers begin to retire, one of the questions or concerns I often hear is, "How can I generate more income in retirement?" Many people today who are in
A bill changing credit union lending limits was expected to come to the U.S. Senate floor in April. The Small Business Lending Enhancement Act (S. 2231) would increase the business lending cap for credit unions from 12.25 percent of their total assets to 27.5 percent. The bill is opposed by bankers, who say the change would mean a major loss of revenue-generating loans for tax-paying community banks. Supporters say the cap increase could bring billions of dollars in new capital for small businesses and create as many as 140,000 (JOBS ?? SMALL BUSINESSES??) in the first year. The legislation has been reintroduced under the new bill number in the Senate and was expected to come directly to the floor without committee debate as early as April.
your retirement income options. Be sure to consider the concepts, ideas and strategies that may have worked in the past may not be the same concepts, ideas and strategies that will work in the future. For an interesting look at inflation be sure to check out the inflation calculator that the Bureau of Labor Statistics makes available. Here is the link http://www.bls.gov/data/inflation_ calculator.htm. Editor’s Note: Article provided by Jason Parker. Mr. Parker is the President of Parker Financial LLC, a fee-based registered
investment advisory firm specializing in wealth management for retirees. His office is located in Silverdale, WA. The opinions and information voiced in this material are not intended to provide specific advice or recommendations for any individual, and do not constitute a solicitation for any securities or insurance products. All information is believed to be from reliable sources; however, no representation is made as to its completeness or accuracy. Please consult your trusted professional for advice and further information. Jason Parker is insurance licensed and offers annuities, life and long-term care insurances as well as investment services.
May 2012 Kitsap Peninsula Business Journal • KPBJ.com 11
Senate may consider bill to raise credit union lending cap
search of income are exploring investments such as dividend paying stocks, high-yield corporate bonds, master limited partnerships, annuities, real estate investment trusts, utilities, preferred stocks and treasuries with yields ranging from 0.5% to 7% with varying degrees of risk. Albert Einstein once said, “The world we have created is a product of our thinking; it cannot be changed without changing our thinking.” As you prepare for and transition through retirement, remember that retirement is all about cash flow not net worth. Be sure to explore all of
Western Union launches new online payment platform The Western Union Co. recently launched WU Pay, a new electronic payments platform that the company said will significantly improve the customer experience and safety for millions of people seeking to make online payments or transfer money. The new WU Pay platform allows online shoppers in the United States to pay for purchases from their existing bank accounts or
in cash at Western Union agent locations. WU Pay is based on the eBillme platform, which Western Union acquired in October 2011. The service is available as a payment option through hundreds of online merchant sites, including Sears, Kmart, Buy.com, Tiger Direct, RedCats USA and others. The payment option can also be used to purchase virtual gift cards from more than 60 companies
including Amazon, JCPenney, The Home Depot, Dell, American Airlines and many others. "WU Pay is an integral part of the ongoing change taking place at Western Union," said Hikmet Ersek, president and CEO. "WU Pay not only propels us further into the digital payments space, it improves our core money movement capabilities by combining the
strengths of our brick-and-mortar agent network and WesternUnion.com with the proven eBillme platform we acquired last year. This is a truly powerful combination of physical and online assets that will make safe and secure e-commerce possible for just about anyone." Customers who use WU Pay are not required to share any account, credit card or other financial information to complete a transaction online. Shoppers choose the option at the checkout page and the order is confirmed with a bill sent to their e-mail address. Consumers pay the bill the same way they pay utilities, loans, insurance and other bills, either through their online bank account or at one of over 44,000 Western Union agent locations in the U.S. For more information about WU Pay, visit www.westernunion.com/wupay.
12 • Kitsap Peninsula Business Journal • KPBJ.com May 2012
E-commerce driving up prepaid card use, report says By Rachel King, ZDNet Summary: Consumers are turning more to prepaid cards to pay bills and make online purchases, according to a new report. Prepaid cards are on the rise especially among members of Generation Y and consumers without easy access to banks, according to a new report from Javelin Strategy & Research. Some of the reasons being attributed to the recent growth of prepaid card use is that this method offers financial independence and help to establish credit. E-commerce, in particular, is driving up prepaid card usage as consumers have started to use them more to pay bills and make online purchases. Additionally, Javelin researchers compare prepaid cards to cash, citing that the latter is generally “unreachable” when shopping online. For “underbanked” customers, or those who don’t have access to payment (credit or debit) cards or checking accounts, prepaid cards fill a void. Otherwise, these consumers have to rely on other options, such as eBillme, that aren’t necessarily provided by all small and major retailers. There’s also another incentive to prepaid cards that rings similar to emerging mobile commerce solutions: it’s an easy way to track loyalty points and memberships, among other purchasing statistics among consumers. Javelin researchers cited the PayPal Prepaid MasterCard, which can be used anywhere MasterCard is accepted, making it a very versatile option. Furthermore, this card offers paypack rewards when linked to a PayPal account. Right now, prepaid cards currently only account for 8 percent of the total online payments volume. Yet prepaid cards’ dollar volume is predicted to increase from $21 billion in 2011 to $32 billion in 2016 as analysts expect that the underbanked population is actually going to grow.
Even with low rates, you can invest for income By Todd Tidball Not long ago, the Federal Reserve announced that it plans to keep shortterm interest rates near zero until late 2014. The Fed initially pushed rates to that level in 2008, in an effort to stimulate economic growth. Clearly, low interest rates have a wideranging impact — but what effect will they have on you, as an individual investor? If you need income from your investments, then the continuation of ultralow interest rates may be a matter of some concern, particularly if you own certain types of fixed-income investments, such as certificates of deposit. While CDs are insured, offer return of principal at maturity and provide regular interest payments, they are not risk-free. With low interest rates, you risk losing purchasing power. Still, fixed-rate vehicles may well have a place in your portfolio. If you’re even somewhat dependent on your investments for income, you may need to broaden your search. Here are a few ideas to consider: Build a bond ladder. Long-term bonds, by their nature, are more subject to interest rate risk than shorter-term vehicles. In other words, interest rates are more likely to rise during the life span of a longer-term
bond – and when rates go up, the prices of existing bonds will fall. To help lower this risk, you may want to build a “ladder” of bonds of varying maturities. Then, if market interest rates are low, you’ll still have your long-term bonds earning higher rates, but if rates rise, you can take advantage of them by reinvesting the proceeds of your maturing short-term bonds. But remember to work with your financial advisor to evaluate whether a bond ladder and the securities held within it are consistent with your investment objectives, risk tolerance and financial circumstances. Consider dividend-paying stocks. You can find companies that have paid dividends for many consecutive years —
and in some cases, increased their dividend payout each year. In 2012, companies listed in the S&P 500 are on track to pay out more than $252 billion in dividends, a record amount, according to data compiled from Standard & Poor’s. (Keep in mind that the S&P 500 is an unmanaged index and is not available for direct investment.) Of course, stock prices will fluctuate in value, and you may receive more or less than your original investment when you sell. Historically, dividend-paying stocks have been less volatile than non-dividend-paying stocks. Be aware, though, that companies can lower or discontinue dividend payments at any time without notice. Past performance is not a guarantee of future results. Refinance your mortgage. Today’s
low rates are good news for borrowers. With tougher standards in place, it may not be as easy to refinance a mortgage as it once was, but if you qualify, you may want to think about refinancing. You may be able to save quite a bit of money on your monthly payments — and lower payments can translate into a greater cash flow. Plus, if you don’t need all the savings, you can put some of the money into an Individual Retirement Account (IRA) or another retirement savings vehicle. Ultimately, an extended period of low interest rates is just one more factor to consider in creating and adjusting your investment strategy. Work with your financial advisor to help ensure low rates won’t affect your income needs.
SBA
Northwest Business Development Association. CDCs process loan applications for SBA, close the loans, and then act as a servicing agent for SBA during the life of the loans. These loans are in second lien position to a bank, whose loan must be approved and committed to prior to SBA processing its application. Therefore, the loan origination process starts with a bank, which ultimately engages a CDC in the process. If you are interested in learning more about SBA financing, contact a participating bank. Kitsap Bank is an SBA Preferred Lender and also works with the three SBA Certified
Development Companies mentioned in this article. Kerry Keely has over 37 years of commercial banking experience and is Vice President and Manager of Kitsap Bank’s SBA Loan Department. Founded in 1908, Kitsap Bank is headquartered in Port Orchard, Washington and is one of the oldest and largest locally owned and operated community banks in the state of Washington. Kitsap Bank operates 21 locations throughout five counties. With over $900 million in assets, the bank provides a full range of financial services to commercial and individual customers.
from page 8 servicing and guarantee subsidy, the effective interest rates borrowers pay are still very low. For March 2012, the 10-year loan effective rate was 3.81 percent and the 20-year loan effective rate was 4.58 percent. Refinance rates are generally .25 to .30 percentage points higher. SBA 504 loans are provided through SBA Certified Development Companies (CDCs) in partnership with banks. There are three CDCs in Western Washington: Ameritrust, Evergreen Business Capital and
Dreaming Up www.edwardjones.com
Members SIPC
the Ideal Retirement Is Your Job.
It’s simple, really. How well you retire depends on how well you plan today. Whether retirement is down the road or just around the corner, the more you work toward your goals now, the better prepared you can be. Preparing for retirement means taking a long-term perspective. We recommend buying quality investments and holding them because we believe that’s the soundest way we can help you work toward your goals At Edward Jones, we spend time getting to know your retirement goals so we can help you reach them. To learn more about why Edward Jones makes sense for you, call or visit today.
Your local Edward Jones financial advisors: Ron Rada
Pat McFadden, AAMS
Todd Tidball
Jason Skifstad, AAMS
8079 E Main St Suite 111 Manchester
19740 7th Ave NE Suite 114 Poulsbo
18887 Hwy 305 NE Suite 100 Poulsbo
3255 NW Lowell St Silverdale
360 871-0998
360 779-6450
360 779-6123
Calvin Christensen
David Hawley
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
360 307-8636
Adam R. Burleson Jeff Thomsen, AAMS
Ed McAvoy
Denette George
20270 Front St Suite 102 Poulsbo
4275 SE Mile Hill Dr Suite A Port Orchard
3421 Kitsap Way Suite A Bremerton
360 598-3750
360 871-9707
360 373-0233
Mary Beslagic
Schelley Dyess
8079 E Main St Manchester
2299 Bethel Ave Port Orchard
360 871-0998 1-800-995-0242
360 876-3835 1-888-688-7817
5971 Hwy 303 N Bremerton
360 475-0683 1-888-475-4450
Clint Boxman, AAMS Lori L. Morgan, AAMS
360 692-1677
360 779-7894 1-866-779-7900
Jay Seaton 600 Kitsap St Suite 102 Port Orchard
360 876-7538
Bim Prince
8202 NE State Hwy 104 Suite 106 Kingston
213 Madison Ave N Suite 200 Bainbridge Island
25960 Ohio Ave NE Suite 101 Kingston
360 297-8677
206 842-1255
360 297-8664
Teresa Bryant
Michael F. Allen
Angela Sell
Jim Thatcher
Christy Givans
555 Pacific Ave Suite 101 Downtown Bremerton
3500 Anderson Hill Rd Suite 101 Silverdale
3276 Plaza Rd NW Suite 112 Silverdale
2135 Sheridan Rd Suite E Bremerton
435 Ericksen Ave NE Suite 100 Bainbridge Island
360 373-1263
360 308-9514
360 698-7408
360 373-6939
206 780-9889
May 2012 Kitsap Peninsula Business Journal • KPBJ.com 13
Helping You Get There Is Ours.
A round-up of Kitsap Peninsula banking institutions and branch locations 1st Security Bank of Washington www.1stsecurityofwa.com (800) 683-0973 Poulsbo: 21650 NW Market Pl. (360) 779-4488
Alaska USA Federal Credit Union www.alaskausa.org (360) 876-0119 Port Orchard: 3355 Bethel Rd SE
AmericanWest Bank www.awbank.net Bainbridge Island 921 Hildebrand Lane (206) 842-6929
Poulsbo 18960 Hwy 305 N (360) 394- 1701
Bank of America www.bankofamerica.com (800) 442-6680 Bainbridge Island 1200 NE Hildebrand Lane Bremerton 1600 NE Riddell Rd and 1000 6th St Gig Harbor 4815 Point Fosdick Dr NW Kingston 10943 NE State Hwy 104
Port Orchard 1497 Olney Ave E Poulsbo 19255 Jensen Way NE Silverdale 9981 Silverdale Way NW 10574 Silverdale Way NW
Boeing Employees’ Credit Union BECU www.becu.org (800) 233-2328 Gary J Oakland, CEO Silverdale Safeway – 2890 NW Bucklin Hill Rd
WestSound Home & Garden magazine is pleased to announce the results of Best of West Sound for 2012.
14 • Kitsap Peninsula Business Journal • KPBJ.com May 2012
For full details, check the spring issue out now.
Best Restaurant Mor Mor Bistro & Bar Best Seafood Restaurant Anthony’s Best Mexican Restaurant Fiesta Best Italian Restaurant That’s-A-Some Italian Ristorante Best Chinese Restaurant Mandarin Chinese Best Breakfast That One Place Best Sunday Brunch Clearwater Casino, Longhouse Buffet Best Wine Tasting Room Mor Mor Bistro & Bar Best Deli Sandwiches Central Market Best Steaks/Prime Rib Whiskey Creek Steakhouse Best Burgers Silver City Brewery Best Restaurant When Someone Else Is Paying Brix 25 Best Pizza Spiros Pizza and Pasta Best Desserts Mora Iced Creamery Best Out-Of-The Way Restaurant Whiskey Creek Steakhouse Best Espresso Starbucks Best Bakery Sluys Best Meat/Seafood Market Central Market
Best Doctor Roger Ludwig Susan Shlifer Jillian Worth Glen Christen Ingela Thomsen Sherri Zumdieck Niran Al-agba Rich Tanaka (All tied for 1st Place) Best Dentist Peter Ruff Krithika Chellapa Chris Mueller Matthew Pollard Lance Rencher Island Dental (All tied for 1st Place) Best Hospital Harrison Medical Center Best Massage Therapy Kenneth L Salon & Spa Best Hair Salon Kenneth L. Salon & Spa Best Spa Rejuv Massage & Spa Apollo Salon & Spa (Tied for 1st Place) Best Gym YMCA Best Car Wash/Detailing Cruise-N Car Wash Best Pre-Owned Car Lot Liberty Bay Auto Best Auto Repair Frontier Auto Center Best New Car Lot West Hills Auto Plex Best Tire Store Les Schwab Your Favorite Business Kitsap Bank
Best Art Gallery Amy Burnett Gallery Best Bookstore Liberty Bay Books Best Candy Store Amy’s Decadent Chocolates Best Hardware Store Scott McLendon’s Hardware Best Veterinarian Dr. James Wempe, Bethel Animal Hospital Best Insurance Agency Brewton-Hight Insurance Agency Inc. Best Attorney Isaac Anderson Best Accounting Firm Darrell Fry & Associates Best Casino Clearwater Casino Resort Best Computer Repair/Networking Keating Consulting Services Best Bank Kitsap Bank Best Credit Union Kitsap Credit Union Best Print Shop Blue Sky Printing and Digital Services Best Hotel The Maritime Inn Best Day Care Peace Lutheran Child Care Best Florist Flowers to Go Best Interior Design Harrison Street Designs
Best Horticulturist Colleen Miko Colleens, A Landscape Design Company Elandan Gardens (Tied for 1st Place) Best Landscape Company Elandan Gardens Best Nursery Valley Nursery Best Rockery Morrison Gravel West Sound Landscape Supplies (Tied for 1st Place) Best Realtor Penny McLaughlin Best Real Estate Office Windermere Silverdale John L Scott Poulsbo (Tied for 1st Place) Best “Green” Builder Sentinel Construction & Consulting Inc. Best Electrician CSW Electric Best Custom Builder Pristine Homes LLC Armstrong Custom Homes (Tied for 1st Place) Best Remodeler WRK Construction Inc. Best Plumber Robison Plumbing Service Inc. Best Roofing Company Hanley Construction Best Cabinetry Shop Choice Carpentry Best Flooring (carpet, tile, hardwood) Carpet One Floor Decorators
Best Paint Store Winslow Paint Peninsula Paint Nayer Paint (All tied for 1st Place) Best Window/Door Company Dahl Glass Best Heating & Air Dana’s Heating Inc. Best Furniture Store Arnold’s Home Furnishing Best Retirement Facility Martha & Mary Best Optometrist Dr. Dana Jungschaffer Dr. Renee Dunaway Dr Michael McGrath (All tied for 1st Place) Best Hearing Specialist Harbor Audiology & Hearing Services Inc. Best Jewelry Store Blue Heron Jewelry Co. Best Antique Shop Silverdale Antiques Best Gifts/Specialty Store Juliana’s Best Mall Kitsap Mall Best Place to Take a Family Battle Point Park Best Customer Service Les Schwab Best Movie Theatre Galaxy Theatre Uptown Best Camp for Kids Miracle Ranch Most Fun Resort for Children Great Wolf Lodge
Chase www.chase.com (877) 682-4273 Bainbridge Island 231 Winslow Way E Belfair QFC – 201 NE SR 300 Bremerton Fred Meyer - 5050 State Hwy 303 NE 500 Pacific Ave. Gig Harbor 5004 Point Fosdick Dr NW 5225 Borgen Blvd NW Port Orchard 4350 SE Mile Hill Dr Fred Meyer – 1900 SE Sedgwick Rd Poulsbo 20350 Little Valley Rd NE Silverdale 10745 Silverdale Way NW
Columbia Bank www.columbiabank.com (800) 304-0050 Bainbridge Island 249 Winslow Way East 208 High School Road Belfair Safeway – 23961 NE State Route 3 Gig Harbor 5303 Point Fosdick Dr NW 3006 Judson St, Suite 101 Kingston 26563 Lindvog Road NE Port Orchard 228 Bravo Terrace Poulsbo Central Market 20148 10th Ave. NE, Suite B Silverdale 10100 Silverdale Way NW
First Citizens Bank www.firstcitizens.com (888) 323-4732 Gig Harbor 5101 Point Fosdick Dr 7101 Stinson Ave.
KeyBank www.key.com (800) 539-2968 Bainbridge Island 617 High School Rd NE Belfair 23731 NE State Route 3 Bremerton 3570 Wheaton Way Gig Harbor 5001 Olympic Dr NW, Ste 101 3216 Judson St, 5055 Borgen Blvd NW 14004 Purdy Dr NW Port Orchard 1301 Bay St Silverdale 9338 Silverdale Way NW
Kitsap Bank www.kitsapbank.com (800) 283-5537 or (360) 876-7800 Bainbridge Island 10140 NE High School Road Belfair 24180 NE SR 3
Round-up, page 15
ROUND-UP
from page 14 Bremerton 607 Pacific Ave., 3425 Wheaton Way, 1140 Marine Dr. 6733 NE State Hwy 303 Gig Harbor 4714 Point Fosdick Dr NW 7109 Pioneer Way Kingston 8190 NE State Hwy 104 Port Orchard 619 Bay St., 1700 Village Lane SE 3324 Bethel Rd. Poulsbo 19725 7th Ave NE Silverdale 10488 NW Silverdale Way
Bainbridge Island 600 Winslow Way E, Suite 120
Timberland Bank www.timberlandbank.com (800) 562-8761 Gig Harbor: 3105 Judson St Poulsbo: 20464 Viking Way NW Silverdale: 2401 NW Bucklin Hill Rd
Umpqua Bank (Formerly Rainier Pacific Bank) www.umpquabank.com (866) 486-7782 Gig Harbor 3123 56th Street Ct NW 4949 Borgen Blvd #101
US Bank www.usbank.com (800) 872-2657 Bremerton: 2020 6th St Gig Harbor Safeway – 4831 Point Fosdick Dr NW Albertson’s – 11330 51st Ave NW Port Orchard Albertson’s – 1434 Olney Ave SE Albertson’s – 370 SW Sedgwick Rd Silverdale Albertson’s – 2222 NW Bucklin Hill Rd
Washington Federal Savings www.washingtonfederal.com Bremerton: 5265 State Hwy 303 NE (360) 479-404
Poulsbo 18960 State Hwy 305N, #103 (360) 779-2111 Wells Fargo Bank www.wellsfargo.com (800) 869-3557 Bainbridge Island 1180 Hildebrand Lane NE Bremerton 2602 6th St, 2550 6th Street (Motor Bank) Safeway – 1401 NE McWilliams Rd. Gig Harbor: 5501 Soundview Dr. Port Orchard: 1488 Olney St SE Poulsbo: 19044 Jensen Way NE Silverdale: 9976 Mickelberry Rd NW
Kitsap Credit Union www.kitsapcu.org (800) 422-5852 Bainbridge Island 1050 Hildebrand Lane Belfair NE 51st Hwy 300 Bremerton 155 Washington Ave., 6651 NE State Hwy 303 Gig Harbor 4949 Borgen Blvd Suite 106 4747 Point Fosdick Dr NW Kingston 8196 NE State Hwy 104 Port Orchard 393 S. Kitsap Blvd. Poulsbo 19045 Hwy 305, Suite 200 Silverdale 9481 Silverdale Way NW 2041 Myhre Rd.
Liberty Bank of Washington www.libertybankwa.com (360) 779-4567 Poulsbo 19917 7th Avenue NW Suite 101
Navy Federal Credit Union
Peninsula Federal Credit Union www.pcfcu.org (800) 426-1601 Belfair NE 23550 Hwy 3 Port Orchard 1081 Bethel Rd Poulsbo 21505 Market Pl NW, Suite 109
Sound Credit Union www.soundcu.com (800) 562-8130 Gig Harbor: 4521 Point Fosdick Dr NW Key Center 8920 Key Peninsula Hwy N
Sterling Savings Bank www.sterlingsavingsbank.com (206) 842-8676
May 2012 Kitsap Peninsula Business Journal • KPBJ.com 15
www.navyfederal.org (888) 842-6328 Bremerton 4980 Auto Center Way Silverdale 3340 NW Randall Way
Kingston Chamber of Commerce asking members to help cover IRS debt over unpaid payroll taxes Board reduces paid staff hours to cut costs, prompting amicable departure of executive director
Now Accepting Online Nominations! We are now accepting nominations for the Kitsap Peninsula Business Journal’s annual 40 Under Forty leadership recognition program!
16 • Kitsap Peninsula Business Journal • KPBJ.com May 2012
Do you know someone outstanding in their industry or profession who is deserving of recognition? Help us highlight the best and brightest young business leaders on the Kitsap Peninsula. Individuals must be under the age of 40 on Sept. 15, 2012 for consideration. C O R P O R A T E
S P O N S O R S
Submit your nomination online today
www.kpbj.com Nomination deadline August 5th, 2012
By Tim Kelly Editor The Kingston Chamber of Commerce is negotiating a repayment plan with the IRS after self-reporting a failure to pay two years’ worth of payroll taxes on the former executive director’s wages, and asking members for contributions to cover the tax bill. According to chamber president Donna Etchey, the exact amount owed to the IRS has not been determined, although she said in a Feb. 26 article in the Kingston Community News that the tax debt could be $8,000 to $15,000. Etchey, who is publisher of the North Kitsap Herald newspaper and Kingston Community News, said in a recent email response to questions from the Kitsap Peninsula Business Journal that “We have been in contact with the IRS to work on getting all the taxes filed and put a payment plan together,” and she hoped that would be completed by the end of June. The tax problem was discovered when the chamber did an internal financial review last November and reported the error to the IRS, Etchey said in her email. Although she said she didn’t know how many members had made special one-time contributions in response to the chamber’s request for help paying the back taxes or what the total amount of contributions was, she did say the community has been very supportive and “we have had community members and businesses drop off donations of anywhere from $25 to $300.” Other members of the chamber and the board of directors either did not respond to requests for comment, or declined to comment because only Etchey was making any statements for the chamber on this issue. The nonpayment of payroll taxes resulted from “not having adequate procedures, information, and controls in place,” Etchey said. She also noted that the volunteer who served as the organization’s treasurer from 2009-11 is no longer on the chamber board, and that the current board is “reviewing the processes and compiling a manual of policies and procedures.” Linda Fyfe, who was the executive director and the chamber’s only paid employee, said her pay stubs always showed the various taxes withheld from her wages, and she had nothing to do with the chamber’s bookkeeping. “Fortunately we were the ones who caught it, and we went to the IRS and said we made a mistake,” she said. She resigned at the end of March because the chamber’s board of directors decided to temporarily reduce the hours for
Tim Kelly photo
The Kingston Chamber of Commerce has reduced the paid staff hours at its office and visitor center in a cost-cutting move to help pay what the organization owes the IRS for two years when payroll taxes on the executive director’s wages were not paid. Executive Director Linda Fyfe resigned when her hours were reduced, but said she may return if the chamber is able to restore the position’s hours after paying off the tax debt. the paid position from 30 to 15 a week. “I completely understand the situation and why the board had to do this,” said Fyfe, who had been executive director for four years and was essentially working full time in the position. “The focus is to be able to pay that (IRS) bill as quickly as possible,” she said, adding that she left “with the understanding that when the debt is paid, and when they can reinstate the position, if I’m available I would return to the Chamber of Commerce.” Fyfe said being the chamber’s executive director was “the best job I ever had, and I would go back in a heartbeat.” The chamber’s website currently has a job posting for a part-time office administrator position, and Etchey said she hopes that position will be filled soon. “All of the board members have stepped up and taken on different job responsibilities to keep the chamber moving forward,” Etchey wrote in her email. “Even though we might not have a position labeled executive director we will still have an employee staffed at the chamber whose main responsibilities will be on membership. “ Fyfe said she is applying for public relations or marketing jobs, possibly with the Port of Kingston or the Suquamish tribe.
State grants for broadband available for unserved areas The Washington State Department of Commerce has applications available for the Local Technology Planning Team grant program. The grants awards will range from $50,000 to $100,000 and are part of the work of the department’s Washington State Broadband Office. The office was created in 2009 legislation and is charged coordination, programming and outreach on opportunities for funding, education and
awareness of broadband issues. The work is funded through the American Recovery and Reinvestment Act by the National Telecommunications and Information Agency. The Washington State Broadband Map was launched in May of 2010 and shows a steadily improving picture of broadband access in the state. But there are still areas that are unserved or underserved and many of these areas are rural and remote. The
AEROSPACE
place to expand, and increased education and training programs to provide workers from page 1 who have the skills those companies need. “Vitrually every high-tech aerospace firm executive director of the Kitsap Economic will tell you that they’re hungry for trained Development Alliance. people,” said state Rep. Larry Seaquist, DThe next KADA meeting May 22 will Tacoma, a leading advocate in the legislature focus on making connections with for higher education. companies already in the aerospace supply Cantwell saw where some of that training chain that are looking for potential will take place when she visited Olympic expansion sites and strategic partners. College in Bremerton Alex Pietsch, who was after the KADA recently appointed to lead “I think we are really roundtable. She was the Governor's Aerospace well-positioned to on hand to mark the Office, will disuss his role as chair of the Washington contribute to growth of launch of a new aerospace training Aerospace Council to lead the aerospace industry program made state government efforts to coordinate with the in the state.” possible by a grant she industry and groups such — John Powers, co-chair helped secure last fall. The program, as KADA. Pietsch was Kitsap Aerospace & Defense which focuses on economic development Alliance composites, currently director in Renton and enrolls nine students and is expected to grow to full enrollment — about 50 students — by next year. Cantwell toured the new classrooms and met students enrolled in the composites training program. The training program is made possible by a $20 million Department of Labor grant that was awarded to Air Washington to support the training of more than 2,600 workers statewide with the skills needed by Washington state’s 650 aerospace employers. Air Washington is a consortium of 11 community and technical colleges across the state, as well as several aerospace training organizations. As a member of the consortium, Olympic College received $2.2 million of the grant to expand its aerospace training capacity and create the new composites program. The college works closely with the consortium and with Boeing and other industry partners to develop standardized training that meets employer needs.
Coming Next Issue... Real Estate An overview of commercial and residential activity
strong community and regional broadband plans for unserved or underserved parts of our state,” said Will Saunders, program and policy director for the Broadband Office. “Communities with broadband access can not only improve their economies but also take full advantage of the benefits of egovernment, telehealth and distance learning to improve the quality of life for their residents.” The Department of Commerce is the lead state agency charged with enhancing and promoting sustainable community and economic vitality in Washington. For more information, visit www.commerce.wa.gov. For information on locating or expanding a business in Washington, visit www.choose washington.com.
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May 2012 Kitsap Peninsula Business Journal • KPBJ.com 17
worked closely with Boeing. “This is where we start to transition from strategic relationship building, getting Kitsap County and SKIA identified” for their potential, Powers said. The next step will be connecting local businesses “with partners in the I-5 corridor.” Along with the Bremerton Airport and SKIA’s available land, Kitsap County boasts convenient transportation links for shipping by road, rail or water, and a high level of educational attainment in the local workforce. Powers noted at the roundtable that Kitsap has the second-highest number of engineers per capita in its workforce of any county in the state. “I think we are really well-positioned to contribute to growth of the aerospace industry in the state,” Powers said. What’s still needed, however, is more infrastructure to make the industrial sites more attractive to companies looking for a
grants, which require a local match, will help these communities move toward broadband deployment and adoption. “Rural economic development efforts are more successful when key infrastructure is in place,” said Rogers Weed, director of the Department of Commerce. “We see broadband as one of those essential pieces of infrastructure.” The grant application deadline is May 31 and grant awards will be announced in June. Application instructions and the grant application can be found on the Broadband Office website at www.broadband.wa.gov. The competitive grant process is expected to draw dozens of applications, many from communities that have already begun work on broadband issues. “We are hoping these grants result in
7 Seas Brewing will move to larger location in Gig Harbor New spot in former QFC site has bigger tap room, more production capacity By Rodika Tollefson Gig Harbor’s 7 Seas Brewing has consistently topped expectations and projections since opening its doors less than three years ago. The microbrewery expanded its capacity within the first year, and before turning two years old it became the first microbrewery in Washington state to can beer. Recently, 7 Seas hit another milestone before its third birthday: It has expanded to a new, larger facility that will give it a bigger tap room as well as position it for growth. “The timing is pretty good. This is a big step forward,” said Travis Guterson, owner of the business with Mark Runion. The pair have been working on remodeling part of the former QFC building on Judson Street that has been vacant since the grocery store closed last year. The brewery will occupy 11,000 square feet of the building, with 2,400 square feet dedicated to the tap room. The plan was to start brewing at the new location at the end of April, but the tap room will not open until closer to fall or so, with the old taproom staying open in the interim.
“We can accommodate more people (in the new tap room) and the whole brewery is on display,” Guterson said. A new three-vessel, 25-barrel brewhouse and four new storage tanks were added to the expanded facility. With the new equipment, the brewery can produce three times more beer and allow for more seasonal taps. “We can It’s still a small explore the brewery, but creative side of this is a muchbrewing,” needed step.” Guterson said. “But the ultimate goal is Mark Runion, not to max it 7 Seas co-owner out as fast as possible. At the end of the day, it’s how much you’re satisfied with the quality of the beer, it’s not about quantity.” Still, he acknowledged, the expansion would not have moved forward if the two didn’t have aspirations to grow their company. And they’ve been doing that steadily since day one. Production went from about 400 barrels the first year to 1,200 currently, and the capacity at the old facility was only about a quarter of what they can do at the new one. “It’s still a small brewery, but this is a much-needed step. It’s not superfast growth,” Runion said. “We did a lot of
research. It’s a lot of learning and it’s humbling.” Runion and Guterson, who are in their late 20s, grew up in Gig Harbor and on Bainbridge Island, respectively. The two met several years ago at Silver City Brewery, where Guterson worked as a brewer. They learned they had similar ambitions and complementary skills — Guterson had been brewing beer as a hobby long before doing it professionally, and Runion had a business degree in entrepreneurship. The two business partners immediately hit a rough patch. Their original brewery was destroyed by a fire just a few weeks short of opening, and most of the equipment was lost. Rebounding quickly, they moved on with their plans and opened their doors a few months later. Moving to the former QFC building is a homecoming of sorts — that original location was just around the corner. “We were buying lunch here at QFC when we were building, a few yards from here,” Guterson said. As the new tap room is still being finished up, 7 Seas Brewing (www.7seasbrewing.com) will host its third anniversary celebration, with food and live music, on July 21 outdoors at its old taproom, located next to Gig Harbor Inn. And while the new one, when it opens, will be much roomier and provide better
brewery views, regular customers will find the same atmosphere: Lack of televisions and food will keep the focus on beer tasting and conversation. Currently, at least 60 percent of the beer is consumed through the taproom. The rest is sold at area grocery stores and available on tap at various bars and restaurants. That model will continue as the output increases. “We want to keep the beer local. It’s best for the beer, it’s best for the environment, and this is where we’re from,” Guterson said. Although the new system will improve efficiency and the potential for more seasonal styles, Guterson and Runion said they plan to go easy on new brews so they are still proud of every beer they create. “We don’t plan drastic changes. We love the beer we make,” Runion said. “We put in 110 percent and giving it our all.” The two say they have grown a lot personally and as entrepreneurs in the past three years. “We’re really happy with our team and that’s what makes it possible,” Runion said. And while it’s a fun business, they said everyone takes responsibilities seriously because every single detail impacts the quality of the beer. “It doesn’t matter how small or large the task, it has to be meticulous and done right,” Guterson said. “You have to have pride in what you do.”
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Gig Harbor made Smithsonian magazine’s list of 20 best small towns in America. The list, published in April at smithsonianmag.com, included towns from across the country whose culture and lifestyle make them the best for visiting, according to the magazine. The publication worked with a geographic information systems company to identify towns with populations under 25,000 that had a high concentration of museums, art galleries, historic sites, botanic gardens and other cultural attractions. “Settled in the 19th century by immigrants from the Adriatic Coast of what is now Croatia, Gig Harbor is a little like Maine without Yankees,” the writers said.
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May 2012 Edition
Events And Activities Wednesday, May 2nd Remodelers Council Meeting 4 p.m. Thursday, May 3rd Developers Council Meeting 7:30 a.m. Saturday, May 5th First Aid/CPR Class 10 a.m. Tuesday, May 8th Peninsula Home & Remodel Expo Comm. Mtg. NOON Wednesday, May 9th HBA Golf Classic Cmte Meeting 4 p.m. Rolling Hills Golf Course - Putters
Elections 2012
2012 OFFICERS
Now that the legislature has completed their work for the year, it is time to begin focusing on all the seats up for election, and there are many. First, and foremost, it is important to be a registered voter and to exercise your responsibility to vote. To register to vote visit: www.secstate.wa.gov. On the Washington Secretary of State’s webpage you will get all the information you need on how to register and the deadlines for doing so. By the way, the Primary election is August 7 and the General election is November 6th. As members of the Home Builders Association of Kitsap County, you are encouraged to attend the many candidate interviews that will be held over the next couple of months. The meetings of the Government Affairs Committee are open to ALL, current, HBA members and we encourage you to attend. Ultimately the Affordable Housing Council of the Home Builders Association of Kitsap County (the HBA Political Action Committee) may endorse any number of candidates; but you are all individual voters and will use a variety of tools to conclude how you believe your ballot is best cast. To aid in that, be sure to read about the candidates. Between all the online opportunities and our local area newspapers, it has never been easier to get information about candidates. This year, the candidate filing week is May 14. As we get closer, more candidates will become known and in that week all will announce. Below is a list of key races the HBA will be monitoring.
President . . . . . . . . . Wayne Keffer, CGR, CAPS First Vice President. . . . . . . . . . . . . . . Robert Baglio Second Vice President . . . Judy Mentor Eagleson Treasurer . . . . . . . . . . . . . . Randy Biegenwald Secretary . . . . . . . . . . . . . . Dee Coppola, CGA Immediate Past President. . . Justin Ingalls, RCS
2012 BUILDER & ASSOC. DIRECTORS Derek Caldwell, CGB • Judy Granlee-Gates Jason Galbreath • David Godbolt, CAPS, CGP, CGR Kevin Hancock • John Leage Robert Lubowicki • Leslie Peterson, CGA Shawnee Spencer • Jim Way, CGB
2012 STATE DIRECTORS Robert Baglio • Derek Caldwell, CGB Lary Coppola • Judy Mentor Eagleson Justin Ingalls, RCS • Wayne Keffer, CGR, CAPS Robert Coultas • Ron Perkerewicz
2012 ALTERNATE STATE DIRECTOR John Armstrong • Karla Cook • Walter Galitzki Greg Livdahl • Brent Marmon
LIFE STATE DIRECTORS Bill Parnell
2012 NATIONAL DIRECTORS
Friday, May 11th AFFORDABLE HOUSING COUNCIL of the HBA of KITSAP COUNTY’S DINNER & AUCTION! Kitsap Golf & Country Club 5:30 p.m. Wednesday, May 23rd HBA Golf Classic Cmte Meeting 4 p.m. Rolling Hills Golf Course - Putters Thursday, May 24th Builder Breakfast 7:30 a.m. Kitsap County Commissioner Robert Gelder Tap Rock Grill - Poulsbo Thursday, May 24th Special Government Affairs Mtng 2-5 p.m. Candidate Interviews Thursday, May 31st Executive Committee Meeting 1:30 p.m. (SPECIAL TIME) Gov’t Affairs Mtng 2 p.m. (SPECIAL TIME) Board of Directors Meeting 3:30 p.m.
Races to Watch
Derek Caldwell, CGB • Judy Mentor Eagleson
The Governor’s race will begin heating up in earnest now. The HBA’s PAC has endorsed Rob McKenna and hopes that all the HBA membership will support him too. The HBA PAC has also early endorsed Reagan Dunn for the Office of the Washington State Attorney General. Other than those two races, the HBA’s PAC has not endorsed any candidates. Interviews will be held over the next several months for the two Kitsap County Commissioner seats up for election. Additionally, we will be watching the races in our three legislative districts; 26, 35, and 23. In the 26th and 35th Districts the Senate seats are not up for election, but in the 23rd it is. You may have heard that Senator Derek Kilmer of the 26th District, is running for the open Congressional Seat. He does not need to give up his Washington State Senate seat to run. If he wins that election, he will need to vacate his State Senate seat and the Governor will then appoint a replacement.
2012 ALTERNATE NATNL. DIRECTORS
Remember the 80’s As an aside, be sure to RSVP for the annual dinner and auction on May 11th. This event is the one major fundraiser the HBA holds for the political action committee and is a great venue for meeting many of our area’s candidates. This year ’s event is themed “Remember the 80’s” and is going to be fun as usual. By attending this event, you are helping the HBA’s PAC to support campaigns of candidates found to be supportive of the issues and concerns of our membership.
Michael Brown • Jeff Coombe
LIFE DIRECTORS Rick Courson • Jim Smalley • Bob Helm Bill Parnell • Larry Ward John Schufreider • Dori Shobert
2012 COUNCIL & CHAIRS Build a Better Christmas. . . Randy Biegenwald Built Green . . . . . . . . . . . . . . . . Walter Galitzki By Laws & Nominations . . . . . . Justin Ingalls Developers Council . . . . . . . . . . . . Rick Cadwell Golf Classic . . . . . . . . . . . . . Shawnee Spencer Govt. Affairs Cmte . . . . . . . . . . . Robert Baglio Remodelers Ccl Chair. . . David Godbolt, CGR, CAPS Membership . . . . . . . . Judy Mentor Eagleson Parade of Homes . . . . . . . . . . . . . Dee Coppola Peninsula H&G Expo. . . . . . . . . . Ardi Villiard Peninsula H&R Expo . . . . Volunteer Needed
HBA STAFF Executive Vice President . . . Teresa Osinski, CGP tosinski@kitsaphba.com Administrative Coordinator . . Stephanie Buhrman info@KitsapHBA.com Expo & Events Director . . . . . . . . Toni Probert hbaevents@kitsaphba.com Office Coordinator . . . . . . . Kathleen Brosnan info@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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May 2012 Edition
The cost of housing is always driven up when new regulatory burdens are placed on construction of new homes. That increased cost is an unWayne R Keffer Construction Inc. palatable burden on our community, builders, and 2012 President potential new homebuyers. As an example, the State Building Code Council is currently discussing the mandating of residential fire sprinklers for single-family homes. The addition of this mandate, if adopted, will add unnecessary cost to construction. In our current economy filled with short sales and foreclosures, it is already next to impossible to get a house to appraise at a cost high enough for the bank to be willing to fund a new construction project. Each additional dollar added to the cost of new construction makes it less likely our citizens will be able to afford it. This hurts our community in many forms. Hardworking family wage earners sit on the sideline and face the possibility of becoming a burden on the community instead of a vibrant contributor. New, safer, more energy efficient housing will not be built, or will only be available to the most wealthy, forcing most families into older less safe and less efficient housing stock; if they can afford to buy a home at all. I am very aware that fire safety is important and I feel if new construction is made affordable, by removing unnecessary regulatory burdens it will make safer housing available to more citizens. The HBA is very concerned about our communities and the essential services provided by all our Fire and Rescue Departments. To that end, the Association’s leadership has repeatedly endorsed our local fire department levies and is always eager to partner with them on projects aimed to improve public safety. The codes already include low cost building techniques and working smoke detectors, which are a component of new construction, and they save lives. Recent changes to the building code mandate carbon monoxide detectors as well. Sprinklers and their added cost are just not warranted and do not provide a cost justified benefit to society. Custom homes being built today, without a mandate for fire sprinklers, rarely include them. Self help and other low cost single family housing programs do not voluntarily include them. The benefits of having them are not justified by the cost. Thanks for being an HBA member, your leadership is key to Kitsap being a great place to live and work. If you are not yet an HBA member, please give us a call and we would be happy to talk to you about the many advantages of membership. Thanks for allowing me to serve.
Wayne Keffer CGR, CAPS
The HBA continues to provide a variety of services for our members and the public. In late March we replaced our full CGP time Administrative Coordinator position with a Executive regularly scheduled part time Vice President employee for those tasks. I hope you will all take the time to call or email our newest hire, Kathleen Brosnan. When you call the HBA you may get Kathleen on the line and if you have questions about your membership account you are going to want to ask to speak to Kathleen. She is catching on very quickly to all that goes on here at the Association office and we are thrilled to have her. Recently our Kitsap HBA Remeodelers Council was able to give back to the community and their craftsmanship is appreciated. In March, several members of the Council, under the leadership of Stephen Kafer, Owner — SF Kafer Construction built a beautiful, safe, and much needed ramp for a local family. The Charity Ramp Build program was started several years ago, when Wayne R Keffer was the Kitsap HBA Remodelers Council chairman. Since then, the Council has built a few ramps as well as a local Make A Wish project. I want to thank the following companies for their involvement in the recent ramp project: SF Kafer Construction, Sentinel Construction and Consulting Services, Orca Remodeling and Plumbing Services, Olympic Wiring, Hands of Joy, WRK Construction, and Kingston Lumber. The Council’s efforts and these members in particular make me very proud of our association. I want to call attention to a special HBA anniversary. Toni Probert has just finished 4 years with the HBA! Toni was originally hired to be “front desk” help and support as well as to assist the HBA’s then Membership and Events Director. Since then, Toni has done all that and so much more. Last year, Toni was promoted to Events and Expo Director and in addition to all the other duties she continues to excel at, she is the lead staff on key HBA events like our two annual Expos and once annual golf tournament. Please take a minute to call the office and thank Toni for her years of dedicated service to this association. Congratulations Toni and thank you! Everyone, be sure to watch your mailbox each month for the bright green HBA events calendar. This tool can help you to keep up on some of the major things coming up at the HBA. Due to space limitations on the card, you may not get all the details you’re seeking so don’t hesitate to call the HBA office for more details. We are working hard on the upcoming 80’s themed dinner and auction (happening May 11 at the Kitsap Golf and Country Club) and also geering up for a GREAT Vegas themed golf tournament in July. Your support of the HBA through your membership and in attending these, and other fun events, is important and appreciated.
Teresa Osinski
May 2012 Edition
Government Affairs Committee
COMMON SENSE — A LOST ART
In the last week I was talking with two different Robert Baglio business associates on two The BJC Group separate occasions. We were 2012 Chair talking about the state of the economy and where we thought things were going and how soon the economy might turn around. None of us had a very cheerful outlook on the economy mainly due to the uncertainty that we all felt. The thing that I found interesting was that both of these business associates said the exact same thing, “It is cheaper to buy an existing building than to build a new one.” Well this does not bode well for those of us in the construction industry. But this statement really hit home with me for several reasons. First, I am in the construction industry and new construction is (was) a large segment of our workload. Second, is that I just happen to have several new construction projects currently trying to obtain financing (we are keeping our fingers crossed), and lastly is because I just left a meeting talking about the new Shoreline Management Plan, the new Washington State Energy Code updates (recently updated in 2009, enacted in 2010, and already being updated again in 2012), and another push for residential sprinklers. As the value of existing commercial buildings and real estate continues to drop, the cost of new construction continues to increase. This divide must be bridged in order to turn around the construction industry. The ever widening chasm between the cost of new construction and the value of existing buildings continues to grow and the disparity is exacerbated by the continual onslaught of regulatory updates. Does no one see or understand the connection? How can our current group of legislatures, both local and national, continue to allow this to happen? All our politicians act as if they want to find ways to spur our economy and turn things around, but at the same time they approve the passage of new regulations that have a detrimental effect on the construction industry and our economy as a whole. How can they be so blind? Do they not get the relationship between more stringent regulations and their direct effect on construction cost? Is everyone so blinded and enamored by the trendy stampede toward energy efficiency and sustainability that they do not take the time to assess the economic implications of the new regulations? Don’t get me wrong, energy efficiency and sustainability are good things, but there comes a point in time where the costs far and away exceed the benefit. It seems as if we have lost all common sense when it comes to these matters or else no one really understands the actual costs required to comply with the new regulations. Well let’s hope people come to their senses and our politicians start to require an economic assessment of the financial impacts of the regulations that are being proposed. If this common sense approach is not implemented it will be a long time before our construction industry turns around, our unemployment rates decrease, and we start making an economic recovery. Let us hope for the best. Perhaps in the upcoming elections we should vote for the candidate with the most common sense. Where is Will Rogers when you need him?
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HBA Dinner and Affordable Housing Council of the HBA Auction It’s time for the annual auction event to support the Affordable Housing Council of the Home Builders Association of Kitsap County (May 11, Kitsap Golf and Country Club, 5:30 p.m.). This is always a crazy, fun, event and we hope all the HBA members and friends will attend. This year’s theme is, “Remember the 80’s.” and we have incorporated that theme throughout the event. Come in theme attire or as you are. There are still a couple themed VIP tables available for those who like the spotlight. For $500 our VIPs get special seating, recognition, and a theme gift for each seat. We hope the elected officials and candidates all take the time to turn out. This is a great event for our members to meet and mingle with elected officials and candidates. In addition to the political action committee, we will have two additional fundraisers that night. The dessert auction proceeds will go directly the Home Builders Foundation to support the ongoing capital need of the Silverdale Veterans Memorial Park, and an item (yet to be donated) will be used to fund the Home Builders Foundation’s ongoing support of Hang On Kitsap (a local program to install safety bars in the homes of Kitsap’s elderly and disabled.) Please call the HBA and reserve your seat at this important and fun annual event. You do not need to be a member to attend, but RSVPs are required.
Got Health Insurance? Did your company recently lose its health benefits? Small or large, are you curious how the HBA’s insurance option stacks up against your current carrier? Have you checked into the HBA health insurance plan recently? Please call the HBA for an application. You do not need to be a current member to get a health insurance quote.
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Welcome New Members BDH Holdings LLC Byron Harris 1225 Darling Rd. NW Bremerton, WA 98311 byrondharris@gmail.com Sponsored: Justin Ingalls, Kitsap Trident Homes, Inc. Disney And Associates, Inc. Robert Disney 1535 SE Cedar Rd. Port Orchard, WA 98367 360-874-1042 disneyandassociates@hotmail.com Sponsored: Judy Mentor Eagleson, Mentor Company
PHC Construction LLC Martin Severtson 710 John Nelson Lane NE Bainbridge Island, WA 98110 206-780-4060 ani@phc-construction.com Sponsored: Robert Baglio, The BJC Group, Inc. Lakeside Industries, Inc. Mike Thomas PO Box 728 Port Angeles, WA 98362 miket@lakesideind.com Sponsored: Stacie Cooper, Kitsap Sun
Hands of Joy Nancy VanBuskirk 916 Veneta Ave. Bremerton, WA 98337 360-792-2844 nancyleevb@q.com Sponsored: Wayne Keffer, Wayne R. Keffer Construction
Thank You Renewing Members 20 Years or More Kitsap Trident Homes, Inc. Jankowski Construction Inc. McCormick Land Co. Inc.
5 Years or More Advanced Door Service Inc. Cloise & Mike Construction Inc. Hill Moving Services Inc. Pickett Property Management Precision Concrete NW Inc. Romack Corp. Sound Construction & Coating Inc. Sterling Estates, Inc. Team4 Engineering The Roof Doctor Winslow Masonry
15 Years or More Central Highlands Inc. Crabtree Drilling Company Eagle Homes, Inc. FPH Construction Inc. Jennings-Heins & Associates, Inc. KG & Sons Inc. Sound Excavation Inc. 2 Years or More Sullivan Heating & Cooling Inc. Zwicker Construction Company Inc. Acupuncture & Wellness Center Clark Construction LLC 10 Years or More DG Builders Inc. Chinook Properties Inc. McGavick Graves PS Hard Rock Inc. Markay Cabinets Inc. Morrison Gravel Inc. Scrubbles Cleaning Service WAVE Broadband
ROII Select and BIAW Claims Assistance Program (CAP) — JOIN NOW! Do you feel like you pay an awful lot to Washington State Labor and Industries for your workers compensation insurance? Based on history, it is likely you are paying too much. However, the only way you might get a refund is by participating in a risk pool. BIAW has a long history of managing such a pool. Consider participating in the ROII (Return on Industrial Insurance) Select program and find out what you’ve left on the table in the past and decide if you want to participate this year. For information on this program, the potential for returns and the claims assistance help all ROII Select members receive, please call BIAW at 1-800-228-4229. This program is open only to members of the HBA, you must remain a member in order to receive any refunds, and a fee to participate in the ROII Select program is assessed. If the ROII Select program isn’t for you, consider participating in the BIAW Claims Assistance Program (CAP). HBA members that choose to join the CAP program will get personal claims assistance help from BIAW’s excellent claims staff when you find yourself dealing with an injured worker’s claim at Labor and Industries. You also can have an onsite or by phone personal consultation with BIAW’s professional staff about how to reduce your risk of claims and how to understand your Experience Modification Rate (EMR).
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Kitsap County DCD redesigns permit submittal documents The Kitsap County Department of Community Development has launched a new webpage showcasing a complete redesign of all permit submittal documents and information. In an ongoing series of process improvement efforts focused on gaining efficiencies and improving customer service, the department redesigned permit applications, submittal checklists, brochures and other documentation to better assist clients in the development and
construction permitting process and to prepare for online permit submittals. The department’s upgraded permitting system is scheduled to go live on May 7 and will have the future capability for online submittals. “Redesigning the submittal documentation has been a huge task and will serve as the foundation for a streamlined, online submittal process which will provide efficiencies for our clients as well as the department,” said Jeff Rowe, chief building
official and deputy director. “The goal is to ensure that our clients have a positive customer experience in the department as they prepare to develop land or build in our community, while insuring compliance with Kitsap County development and construction standards.” The makeover of the application brochures, forms and checklists has resulted in a bundled permit application package. A new form, the Project Application, requires an applicant to
provide necessary data only once, unlike the current system, where a name and address is required on multiple forms. More importantly, the checklist provides the specific code references to better assist an applicant in providing complete information at the time of submittal. DCD anticipates that by clearly identifying requirements at the time of submittal, processing times will decrease and it will sets the stage for online permitting. Visit www.kitsapgov.com/dcd/forms.
Energy retrofit project shows savings results at HBA headquarters A few months after completing a series of energy efficiency upgrades at its Bremerton headquarters, the Home Builders Association of Kitsap County said it has already seen big energy and water savings. Since the upgrades were completed in August 2011, electricity use has dropped significantly. When the cold weather hit in December 2011, the HBA used 11 percent less kilowatt-hours of energy compared to the previous year. The HBA is also seeing big savings in water reduction. In December of 2011, water use decreased 66 percent compared to the previous year. Between August 2011 and January 2012, the HBA saved approximately 1,496 gallons of water each month. In addition to reduced energy use, HBA
employees say the upgrades have increased the comfort and health of the building and have demonstrated that upgrades can have a huge impact on building performance. “The building is much improved — much more comfortable. We’ve all noticed a more consistent temperature throughout the building, instead of cold spots by our desks and too hot upstairs,” said Teresa Osinski, executive vice president of the HBA. “We love having almost instant hot water at the sinks. The dual-flush toilets are great, too — even our visitors have commented on them.” The HBA sees the building as a classroom for the public but also the professional construction industry. “We want all our builders to be knowledgeable about how to do this,” Osinski said. The
Art Anderson Associates lands Port of Portland contract
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opportunities in their own homes can participate in the RePower Kitsap program, www.repowerkitsap.org, which offers inhome assessments, energy-efficiency financing and incentives, and a local, skilled workforce to make energy conservation easier and more affordable. Homeowners who choose to undergo energy-efficient upgrades can track their annual energy and water use by adding up their monthly utility bills before their upgrade and then comparing annual results for energy use and costs each year after the upgrade.
Partners In Success
Left to right: Mindy Teigen, Sales Representative; Lori Bullard, Sales Representative/Title Officer; Julie Cooper Lender Representative; Vickie Lawrence Vice President/Sales Manager
Pacific Northwest Title will once again be participating in the 2012 American Cancer Society Relay for Life events in Kitsap County. We are sponsoring our penny marathon to help raise money for this worthwhile charity. Please stop by any of our branches and drop off your spare change in one of our decorated canisters. All proceeds go to support of Relay for Life.
Last year, you helped raise over $1500 for the Bremerton/Central Kitsap and North Kitsap Relay for Life events!
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May 2012 Kitsap Peninsula Business Journal • KPBJ.com 23
Art Anderson Associates, a Bremerton-based multidisciplinary engineering services firm, was recently awarded a contract for On-Call Naval Architect Design Services with the Navigation Division of the Port of Portland. The Navigation Division operates a fleet of vessels and barges, including the dredge Oregon, and has retained the firm to provide naval architecture and marine engineering services in support of fleet maintenance and operations. While the firm has maintained a presence in the Portland area for many years providing facilities construction management services on behalf of the U.S. General Services Administration, it only recently has focused on more naval architecture and marine work in the region. Active projects include upgrades to the Clackamas County Canby Ferry, and continued engineering support for the National Oceanic and Atmospheric Administration’s research vessel fleet, whose homeport recently moved to Newport, Ore.
demonstration project was made possible with support and funding from Kitsap County. “The Home Builders Association of Kitsap County building is a great site to demonstrate energy saving opportunities common in homes and businesses” said Kitsap County Commissioner Charlotte Garrido. “Our partnership with the HBA provides practical information about Built Green practices and weatherization for builders, homeowners, and businesses.” Homeowners interested in learning more about energy conservation
Time flies ... in the pursuit of aerospace By John Powers Kitsap Economic Development Alliance Tim Thomson Port of Bremerton It was just about a year ago that Washington state organized to fight for its economic future ... and retain the title of “Aerospace Capital of the World.” At that time, Boeing was examining the future of the most successful commercial airplane ever built — the 737 — an airliner accounting for 40 percent of commercial fleets currently in service. Since 1967, more than 7,000 737s have rolled off the line in Renton; but, now Boeing was considering all options for building the next generation of this prolific workhorse — the 737MAX.
Communities from across the country, and around the globe, were angling to become the new home of the 737MAX ... it was time for Washington to cinch its chin strap and take the field. Gov. Chris Gregoire, working with officials at the Puget Sound Regional Council, as well as business and labor leader from across the state, formed the Washington Aerospace Partnership (WAP) to lead the charge in defending our aerospace legacy interests and insuring Washington state was home to the 737MAX. The WAP partnered with the Washington State Department of Commerce to devise and execute a strategy for the ultimate economic development reten-tion
Get a New FHA Streamline Refinance The new FHA streamline refinance guidelines are set to change on June 11, 2012 drastically reducing funding fees and monthly mortgage insurance. Do you qualify? As a home owner with an FHA loan, you may be entitled to a lower interest rate and overall lower monthly payment with an FHA Streamline refinance. It’s simple, quick and could save you real money every month.
24 • Kitsap Peninsula Business Journal • KPBJ.com May 2012
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There are two basic qualification requirements for an FHA streamline refinance: • Your current FHA loan was closed prior to June 2009 • You have not missed a mortgage payment or been more than 30 days late in the past 12 months. If you meet both of these requirements, it is crucial that you take advantage of this opportunity by contacting your local Legacy Group Lending office to see if you are eligible for an FHA Streamline Refinance.
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case — “Project Pegasus.” The DOC contacted the Kitsap Economic Development Alliance and other associated development organizations across the state to advise them that Boeing would be evaluating potential manufacturing sites throughout the state ... as well as out-of-state options. When KEDA got the call it immediately conferred with officials at the Port of Bremerton to examine the pros-pects for promoting the South Kitsap Industrial Area (SKIA), which includes the Bremerton National Airport, as a viable lo-cation for assembling the 737MAX. The Puget Sound Regional Council also advo-cated for the Port’s participation in WAP. In the spring of 2011, Kitsap was not considered a “player” in the aerospace industry; but, local leaders led by former Port CEO Cary Bozeman quickly posed the question: Why not Kitsap? Why couldn’t Kitsap and SKIA be home to the 737MAX and the thousands of jobs attendant to its production? Kitsap leaders worked to formulate a clear and direct answer: Why Kitsap ... Kitsap because: it has long been a world-class advanced manufacturing center in maritime; it is home to the second-largest industrial complex in the region; it enjoys a well-educated and skilled workforce, including the highest per capita concentration of engineers in the state; it offers the largest heavy industrial greenfield site in the region, including Bremerton National Airport; it is in close proximity and well connected to the I-5 aerospace corridor while offering an unparalleled quality of life; and, Kitsap is committed to doing what it takes to make sure Washington state remains the “Aerospace Capital of the World.” In short, Kitsap declared it was not only in, it was “all in”; resulting in a substantial community investment ($45,000) in Project Pegasus and the formation of the Kitsap Aerospace & Defense Alliance (KADA) to position and promote Kitsap in general, and SKIA in particular, as a great place for aerospace. As 2011 drew to a close, Boeing announced it would build the next generation of the 737 — the 737MAX — alongside the continued production of the 737 in Renton. This decision was a win-win-win for
aerospace workers, for aerospace companies, and for the citizens of Washington. Although SKIA was not selected to be the assembly site for the 737MAX, Kitsap is now positioned to participate in the long-range, robust growth of the entire aerospace industry in our region, both commercial and defense products. Industry growth will impact Boeing and over 400 aerospace suppliers that already operate in our region. More will follow, including Kitsap companies. Because the Kitsap community coalesced to declare its interest in participating in the growing aerospace industry, and because Kitsap leaders committed to investing in Project Pegasus, and because KADA effectively promoted Kitsap’s attributes and assets, Kitsap is seen as a viable aerospace “player” — Kitsap is now, in fact, in the aerospace game. The Kitsap Aerospace & Defense Alliance’s vision to advance Kitsap County as a market leader in the innovation and advanced manufacturing of products, goods and services for the aerospace and defense industries is coming into focus. And, KADA’s mission to position and promote Kitsap County to retain, expand and attract aerospace and defense industry investment and employment via the execution of a comprehensive, integrated strategic workforce/infrastructure/facil-ities and marketing plan is taking shape. You might say we are beginning to get “lift.” The Kitsap Aerospace & Defense Alliance is a public-private consortium of elected officials and business leaders dedi-cated to providing resources and assistance to aerospace and defense companies located in, expanding or relocating to Kitsap County — it is led by a steering committee chaired by Tim Thomson, CEO of the Port of Bremerton, and John Powers, Executive Director of the Kitsap Economic Development Alliance. For more information about KADA and how your company can explore oppor-tunities in the aerospace and defense industries in Kitsap, please contact Kathy Cocus, business development director, Kitsap Economic Development Alliance, at 360-377-0180 or cocus@kitsapeda.org; Tim Thomson, CEO, Port of Bremerton; or John Powers, Executive Director, KEDA.
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Making Kitsap a hot spot for adventures outlet, but he’ll likely retain a presence in Port Gamble. “It’s a beautiful place,” he says. He has been promoting that beauty of Port Gamble, along with its recreational benefits, ever since moving the business there. The Northwest Adventure Sports Festival, now in its third year, aims to attract paddlers and mountain bikers to the area as well as allow them to experience new sports. Another successful event, Paddle Kitsap, was created five years ago to benefit the North Kitsap Trails Association. One of Kuntz’s goals was to create a water trail, and in August that dream will come true. The trail was recently approved by the county and will be dedicated at a special ceremony in Kingston on Aug. 4. The project is the result of collaboration among several organizations. Kuntz says promoting things such as the String of Pearls — the NKTA’s master plan for linking water and land trails — goes far
beyond his business goals. “It’s a quality-oflife issue, but also recognizing that some sites will be gone (if we don’t act),” he says. After being in business on the Kitsap Peninsula for 25 years, Kuntz says for the first time he is encouraged by the energy of various local organizations and the KPVCB to work together and promote tourism as well as quality of life. “We’re starting to see the results of that, not only with our event but also other events coming to Kitsap,” he says. As he continues to look for opportunities to promote Kitsap, Kuntz is also on his toes for new business opportunities and ideas. He says Olympic Outdoor Center is well established, which helps create a stable customer base, but he envisions even more. “Worldwide programs would be cool,” he says. “Already, we’re the largest outfitter in the state. … I think we can become one of the largest companies of this type in the U.S.”
May 2012 Kitsap Peninsula Business Journal • KPBJ.com 25
By Rodika Tollefson sea kayaking lessons and trips. By 1992, he For the past few years, the Kitsap was ready to invest in a full-service retail Peninsula has been working on its shop in Poulsbo. reputation as much more than Seattle’s Kuntz points out that several companies neighbor “only a ferry ride away.” Outdoor that went from full-service to specializing adventure sports enthusiasts are have since gone out of business. “discovering” the area and its rich water and “That’s what’s helped us survive for 25 land opportunities. years, being full-service,” he says. “Multiple Last year’s visit by nearly 300 Microsoft revenue sources has been the key.” employees for a play day is one example. Online sales (at kayakproshop.com) are The company-sponsored outing included a major factor in that diversification golf and kayaking. And it’s not the first time strategy. Kuntz, who has a computer groups of several hundred people have descended on the peninsula for some organized recreation — thanks to annual events such as Paddle Kitsap and Northwest Adventure Sports Festival that are growing every year. The creative brain behind those two events is John Kuntz, owner of Olympic Outdoor Center headquartered in Port Rodika Tollefson photo Gamble. Kuntz, who John Kuntz owns Olympic Outdoor Center in Port Gamble. is active with organizations such as the Kitsap Peninsula background and wrote programs for a Visitor and Convention Bureau and the decade, ventured into e-commerce in 1992, North Kitsap Trails Association, sees a lot shortly after opening the retail store. Back of untapped opportunities for adventure in those days, not many people shopped sports in Kitsap County. online, so those sales comprised only about “We have more shoreline than every 10 percent of revenues. Now, that number county except San Juan. We have a lot of is bigger than 70 percent of all sales, and places to paddle but also a lot of open space about half the orders go overseas. They also for things like biking and bird watching,” he ship orders from the store worldwide. says. “We have so much to offer.” “What we’ve done by selling For those seeking that type of internationally is make (the business) less experience, Olympic Outdoor Center has seasonal, allowing us to bring in revenue everything covered. In addition to the retail when it’s slower here,” Kuntz says. “It’s a location in Port Gamble that caters to global market out there.” kayaking and other outdoor activities, the As the first major paddling business on company has a site on the Poulsbo the peninsula, Outdoor Olympic Center waterfront for classes and rentals. Its (www.olympicoutdoorcenter.com) created newest satellite location, on Bainbridge an extensive curriculum both for adults and Island, will open this summer with the focus youth. Classes range from introduction to on standup paddleboard rentals and classes. kayaking, to preparing for multiday touring. The physical locations are just the Youth programs are geared to kids as young beginning. The center has an extensive list as 7, with different levels of instruction and of classes, summer camps, guided tours and activities based on age categories (7-10 or trips. Online sales all over the world are 11-13). The entire curriculum is based on another robust part of the business. American Canoe Association certification. Diversification, according to Kuntz, has In 2009, the retail operations moved to helped the business stay successful, as well Port Gamble. Much of it had to do with the as helped it grow. Kuntz launched the downturn in the economy — Kuntz says he business out of his home in 1986 to offer “saw it coming” in 2008 and he needed a river rafting. When he realized a couple of less expensive location where he could still years later that it didn’t have much growth expand. Eventually, he thinks he may need or profit potential, he switched to offering to go back to a more centrally located
Gig Harbor Fly Shop owner hopes to spread passion for sport
26 • Kitsap Peninsula Business Journal • KPBJ.com May 2012
By Rodika Tollefson The Gig Harbor Fly Shop, less than four years old, has created a following all over Puget Sound. Popular with both beginner and experienced anglers, the shop offers everything needed for a successful fishing outing — from gear, DIY fly-tying supplies and insulated clothing, to classes, guided trips and fishing kayak rentals. For owner Blake Merwin, the shop’s many offerings are a way to get more people attracted to the sport of fly fishing. That’s why he keeps his class fees low — he says he has among the lowest class prices in the country — with the four-hour introductory course at $50, and other classes ranging from $40 to $99 (including a very popular, two-session beach course). “Classes are more of a long-term investment than short-term profit,” he says. “I’d rather get a customer excited about going out fly fishing.” There are many other outdoor sports competing with fly fishing, from hiking to kayaking, but once people are hooked, it becomes much more than a hobby. “For a lot of us, fly fishing is a lifestyle,” Merwin says. “I have a lot of hobbies, and fly fishing is not in the same category.”
Even before he owned the shop, he would work fishing into his vacations or weekend backpacking trips. “I’ve always been crazy about fly fishing,” he says. That craze started when he was about 11, growing up in Northern California. Merwin recalls delivering newspapers after school on his route and then heading out to the lake to fish for much of the day. Once he discovered fly fishing, he slowly transitioned away from conventional fishing — by 15, he got his first fly-fishing rod and learned the sport on his own, since his parents were using traditional methods. Merwin launched his business online in 2004 while in California. In his mid-20s at the time, he needed to supplement his income as a youth pastor. He and his wife, Allison, sank about $6,000 of their savings into the venture. The online store did well and had strong sales, but it was limited in its selection because many suppliers only did business with brick-and-mortar shops. After moving to Gig Harbor for a new youth ministry job, Merwin worked full time as a pastor and Allison took over much of the shipping and customer service. By 2008, he was ready to take the leap into fulltime entrepreneurship, and took advantage
of the opportunity to change into a different role at the church that allowed him to be a part-time outreach pastor. When the business opened its doors, the couple were also brand new foster parents to two infants. “It was rough,” Merwin says. The Gig Harbor Fly Shop (www.gigharborflyshop.com) quickly outgrew its first downtown location and more than a year ago moved about a block away, across the street, to a larger and more visible spot. The move worked out well, and being debt-free no doubt has helped with the expansion. Part of the advantage of the new location is to have the indoor classes inside the retail area. Merwin continuously Blake Merwin at his Gig Harbor Fly Shop.Rodika Tollefson photo expands various facets of the business. For example, to address demand focused solely on online sales, which for lower prices due to the economy and to generate more than a quarter of retail generate extra sales, he introduced a traderevenues, and another will manage the in program. Customers can get store credit website back end. That will free up the for their used gear, which the store will then other store employees to help and educate sell. customers. “Trying to be creative has helped “In the summer, a couple of hundred business,” Merwin says. people walk in (every day) but we also need The saltwater fishing kayaks are the to help anglers who have questions,” he says. “Sometimes we’ll spend half an hour newest addition on the product side. And on the guided tours and classes side, one to an hour and a half with a customer just program Merwin hopes to grow is hosted testing out a fly rod and casting it outside.” trips to exotic locations. Baja was the debut It’s those kinds of service and location, and Merwin says it’s an affordable relationships, not only with customers but trip he hopes to offer every year. He’s also also with employees, that Merwin enjoys considering a trip next February to the most. He sees the relationship building Venezuela or Christmas Island, and other as an extension of his ministry vocation. In options closer to home, such as Vancouver fact, he’s not shy to mix the two. In one Island. recent example, he invited customers and Recently, Merwin hired two more friends on Easter to come for service on the employees, for a total of five. He also works beach, followed, of course, by fishing. at the business full-time while balancing his “Our core values are shaped by our roles as pastor, father and foster parent. ministry vocation,” he says. “The One of his employees will now be relationships are the best part.”
New tennis and community center proposed in Poulsbo A Bainbridge Island man is looking for partners to invest in his plan to develop an indoor tennis, fitness and community center in Poulsbo. Chad Haight, after more than 30 years working in publishing at Seattle Weekly and Sasquatch Books, said he is trying to "reorient my life and work to the Kitsap side of Puget Sound." He plans to introduce himself as a new member of the Poulsbo Chamber of Commerce and explain his plan for the Kitsap Tennis & Community Center at the chamber's monthly luncheon on April 11. According to his business plan, the complex he envisions would have six to eight indoor tennis courts, full workout and fitness facilities, and a clubhouse with meeting and activity rooms for holding special events. His plan calls for a capital investment of $1.5 million to $2 million. The proposal also calls for creating the tennis center in association with the Clearwater Casino & Hotel, whose guests would have fee-based access to the courts. Haight expects the central location in Poulsbo would enable the center to draw members, who will have partial ownership in the club, from all around North Kitsap. A primary focus of the tennis center would be on youth programs, including sponsoring United State Tennis Association tournaments and leagues.
Standup paddling gains wind in Kitsap region By Rodika Tollefson Lee Murray has been surfing since the late 1960s, starting out at age 12 in California. But several years ago, Murray discovered standup paddling — and that was pretty much the end of his surfing days. Now, he no longer has to wait for the right wind and other conditions, and can go out on the water any time. “The paddle completely changes it. Surfing is a difficult sport and windsurfing is the same, because you have to learn so many things,” he says. “Flatwater paddling is the easiest sport to learn that I’ve seen. It’s simple — you need a board, a paddle and a swimsuit.” Murray was so hooked into his new hobby, last October he decided to start a new business in downtown Gig Harbor, Lee’s SUP. An experienced entrepreneur and former commercial fisherman, he set up a small shop on the waterfront to rent SUPs and sell gear and equipment. As the warm weather kicks in, he hopes to attract current and new paddlers, as well as surfers looking for a different kind of challenge. “A lot of people with long history on the water are finding it perfect because you don’t have to wait for the right conditions,” he says. “It’s like having a bike — you can always ride a bike.” Standup paddling, or SUP, requires a special surfboard that is usually 10 to 18 feet
Lee Murray, experienced surfer and owner of Lee’s SUP in Gig Harbor, can usually be easily spotted on his standup paddleboard thanks to his signature white-and-blue striped shorts. long, as well as a special paddle used to propel the board. An ancient sport, it re-emerged in Hawaii about 50 years ago and has been exploding in popularity in recent years. The more serious paddlers have several boards for
different conditions, and put their skill to the test at various races. “It’s a great way to get on the water and get exercise. It’s low-impact and relatively easy,” says Forrest Wells, business manager for Port Gamble’s Olympic Outdoor Center, which sells and rents SUP gear. Wells, who’s been a surfer for more than 20 years and took up SUP about five years ago, says SUP’s advantages include a better view of the water and surroundings because of the standing position. It’s also a good way to get a full-body workout. “It’s popular among people who are fitness-oriented,” he says. “And it’s versatile — you can do so many things on a standup paddleboard that makes it desirable for people. It’s also fun and engaging.” Beginners don’t need any water experience and can use a wider board, as well as paddle on their knees to get a feel for the board. Around West Sound, there are plenty of areas for SUP fun, from Gig Harbor’s waterfront and the Purdy Sandspit to Eagle Harbor and Liberty Bay on the north end. Purdy is one of Murray’s favorite local spots — he likes to paddle under the bridge, going with the current into the wind and then turning around and riding the swell into the current. The beauty of SUP, he says, is that there’s no limit to the challenge because experienced
paddlers can always find something new to try. And for those who miss the waves, there’s still the opportunity to surf them. “I’ve been doing it since 2009 and I’m noticing that I’m getting better in rough water. There’s a ton more to learn,” says Murray, who owns several boards and races as many as 30 times a year, frequently placing in top spots not only in his 50-plus age category but also overall. He takes the affair seriously, too, when he chooses his paddling spots: His reading includes a tides book, Puget Sound charts and marine biography books. For paddlers planning to venture out farther and longer in the open waters, Wells suggests gearing up accordingly. “We definitely recommend thermal protection as risks go up and you’re out there more,” he says, adding that he also encourages people to wear a special leash that helps retrieve the board, especially in windy weather. Olympic Outdoor Center added SUPs about two years ago and so far, Wells says, the main interest has been in rentals. But as more people experience standup paddling, he expects board sales to pick up as well. He says at the races, most paddlers are men in their 20s and 30s but about half of renters are women, and many paddlers are in their 50s and 60s. “A lot of people are still in the exploratory stage,” he says. “It’s slowly building momentum.”
McCormick Woods Golf changes ownership model their home course for the club and premier memberships, which also entitle them to discounts off all RGM green fees and other perks. The highest-priced, all-access option gives unlimited access to all RMG courses, plus guest fee discounts and other advantages. Memberships are available with a 12month contract set up with automatic payment. Spouses and children can be added under the premier and all-access options at steeply discounted rates. Cucciardi said the membership is a value at any level, and estimates that unlimited play under the old club model would cost about $400 a month on average for the hardcore players compared with the $179 offered by RMG. He said even with limited advertising, the interest so far has surpassed projections — and in the case of Oakbrook, membershi p has tripled. The idea behind the new company is to make golf more accessible to all ages and walks of life, according to Cucciardi. “Golf has been viewed as an elitist sport. We want all people to be comfortable and come in as they are to enjoy the facilities,” he said. He said the partnership with the Moores is exciting because of the similar visions they have. Ryan Moore, who grew up in Puyallup, is known for “doing things his own way” and declining blank sponsorships, endorsing only products he liked and wanted to use. Moore went from being the top junior golfer in the world in 2001 to winning a PGA Tour event, the Wyndham Championship in Greensboro, N.C., in 2009. “He has not had a stereotypical career,” Cucciardi said. “That’s what we want to do
here, do things differently.” By the end of 2012, Cucciardi expects the company to have three more clubs in the Puget Sound area, and then expand around the country after that, with the help of current and new investors. The first market outside of Puget Sound is likely to be the Las Vegas area, where Moore. A new tier will be added to the memberships once RMG Club expands to new markets.
“We want to provide our members with the opportunity to golf and travel,” C ucciardi said. “Six or seven clubs is an ideal number (per market) but we don’t want to saturate it.” For more information about RMG Club, go to www.rmgclub.com or www.ryangolfmoore.net; for McCormick Woods Golf information, go to www.mccormickwoodsgolf.com.
Bremerton Figure Skating Club to host PNIC regional competition The Pacific Northwest Interclub (PNIC) Association of United States Figure Skating has selected Bremerton Figure Skating Club to host its annual competition Aug. 3-5. Bremerton Ice Center, the club’s home rink, will host the event, which is expected to attract an estimated 150 competitive skaters from the United States and Canada. Previous PNIC events have attracted skaters from Washington, Oregon, Montana, Idaho, Wyoming, Alaska and other states as well as Canada. United States Figure Skating, the nation’s governing body for competitive figure skating, has sanctioned the event. It is the first time that Bremerton Figure Skating Club has been selected to host a USFS competition. “We are pleased that Bremerton Figure Skating Club will have the opportunity to host this important competition, which will make a positive economic impact on the area and helps to put our club on the map for future competitions,” club president Christina Schmitt said. “Our dedicated volunteers, as well as volunteers from throughout the state, will work hard to ensure that our competitors and their families have an enjoyable visit to Bremerton.” Organizers estimate that the economic impact to the area will be between $80,000 and $100,000 from lodging, food, equipment and ice rental and other visitor spending. The competition will feature numerous individual and group events for skaters of all ages and also is a part of the USFS National Solo Dance Series. With combined scoring used for the skaters who have short and long programs, the competition is considered a warmup for the 2013 Pacific Northwest Regional Championships, which will be Sept. 28-Oct. 2, in Eugene, Ore. Founded in June 2006, the Bremerton Figure Skating Club has 47 members, including skaters of all ages. The members include skaters who have won medals at the Northwest Pacific Regional Championships and have competed in events such as the U.S. Junior National Championships and the Pacific Coast Sectional Championships.
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By Rodika Tollefson McCormick Woods Golf Course became part of a new company, RMG Club, in January. McCormick’s owners, Jeff Mehlert and Shawn Cucciardi, joined forces with PGA pro Ryan Moore and his father, Michael, to create the new company — which is named after Ryan Moore. “We formed a new way to look at golf,” Cucciardi said. “What we’re trying to do is allow more golfers to get into the game of golf.” The Moores’ golf club, The Classic located in Spanaway, was added to the joint portfolio, and together they acquired Oakbrook, previously a private club, in Lakewood. While each club maintains its own identity, policies and systems are being implemented in the new corporation, including centralized accounts. The owners are also replicating some of each other’s best practices at other locations — for example, the McCormick restaurant model will be implemented at Oakbrook to help increase business at that club’s dining side. Venue rentals and event planning will not see any changes at McCormick. The restaurants will also continue to be marketed under their own brands. “We don’t want to lose the independent brands because every community is unique. But we do want to give life to the new brand,” said Cucciardi, who is the chief operating officer for RMG. The main change is a new membership model for golfers. Three tiers are currently offered, from $49 to $179 per month, in addition to the usual options for green fees. Players choose one of the three locations as
A roundup of local golf courses and country clubs Alderbrook Golf & Yacht Club 300 Country Club Drive, Union (360) 898-2560 Course Pro: Justin Gravatt Alderbrook is an 18-hole, par 72 course. It is 6,326 yards long and is assigned a course/slope rating of 70.8/121. Weekday green fees are $40 and $18 for Juniors. The weekend (Friday through Sunday) and holiday fee is $55 except for Juniors who pay $18. A $25 twilight rate is in effect after 3 p.m. on Monday through Thursday; and $35 on Friday through Sunday. Club rentals are $15 for 18 holes or $10 for nine holes. Hand carts cost $5 for 18 holes, $3 for 9 and power carts are $14 per rider. Alderbrook offers a driving range, putting green and chipping area. If you are new to the sport or want to buff up your short-iron game, a 45-minute individual lesson costs $40 or four for $120. Group instructions available for 3 – 6 people for one hour at $20 per person. Alderbrook offers a snack bar and restaurant, Alderbrook Golf and Yacht Club Restaurant; open Monday through Friday from 11 a.m. to 7 p.m. Saturday 11 a.m. to 9 p.m. and Sunday 8 a.m. to 9 p. m. Alderbrook is available for tournaments. Call for more information.
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Canterwood Golf & Country Club 12606 54th Avenue NW, Gig Harbor (253) 851-1845 Head Golf Pro: Dale Davis Canterwood Golf & Country Club is a private 18-hole facility. Course par is 72, length is 7,185 and the course is rated 75.9/146. Call Canterwood for membership details. Canterwood offers a driving range, putting green, chipping area and has been rated by Golf Digest to be one of the best golf courses in Washington State. Gig Harbor Golf and Country Club 6909 Artondale Dr NW, Gig Harbor (253) 851-2378 General Manager and Course Pro: Steve Stensland Gig Harbor Golf and Country Club is a private nine-hole facility. It is 5,420 yards long and the course par is 70 and is rated 66.3/114 for men and 67.6/118 for women. The course is scenic, hilly and has incredible views of Mt. Rainier. Memberships are available for $192 per month for 9 months and then 3 months are free; call Gig Harbor Golf and Country Club for details. They offer a driving range, putting green and a chipping area. A new renovated event space is now available to members and nonmembers. Gold Mountain Golf Complex 7263 West Belfair Valley Road www.goldmt.com (360) 415-5432 Golf Director: Scott Alexander
Head Pro: Daryl Maphney Gold Mountain offers two 18-hole courses, Olympic and Cascade. Par for the Olympic course is 72. The 7,035-yard course is rated 74.1/135, 71.3/129, 69.1/124 for men and 74.7/132 and 70.2/122 for women. Olympics’ weekday green fees are $42, $36 for Seniors and $22 for Juniors. Olympics’ Friday fees are $46, weekend and holiday fees are $60 for everyone. Twilight fees are $25 for weekday and $27 for weekend. Par for the Cascade course is 71. Cascade is 6,707 yards long and is rated 72.2/125, 70.5/122, 69.0/118 for men and 75.0/127 and 70.2/119 for women. Cascade’s weekday fees are $33, $28 for Seniors and $12 for Juniors, Friday - $36 for everyone. On weekends and holidays Cascade costs $40 and twilight rates are $23 during weekdays and $26 for weekends. Clubs rent for $25. Hand carts rent for $4 and power carts for $16 per person. The facility offers a putting green, a chipping area and a partially covered driving range. Instruction is available, call for details. Tuckers Restaurant, 415-6895, is open to the public Wednesday through Friday for dinner and every day for breakfast and lunch. Gold Mountain has been chosen to host the 2011 U.S. Junior Amateur Tournament and Golf Digest has rated the Olympic course to be the second best value in the United States. Horseshoe Lake Golf Course 1250 SW Club House Ct, Port Orchard (253) 857-3326 Horseshoe Lake Golf Course is an 18hole, par 71 course. Its length is 5,607 yards and it is rated 69.1/116. Peek weekday green fees are $36, which includes cart, and $12 for Juniors. Twilight rates after 1 p.m. during the weekday is $29 and 12 for Juniors and includes a cart and all you can play. The weekend and holiday rate before 8 a.m. is $39; from 8 a.m. to 1 p.m. the rate is $39, twilight weekend after 1 p.m. are $32 for everyone which includes a cart and all you can play. Club rentals are $20. Hand carts are free. Horseshoe Lake offers a driving range, putting green and chipping area. Kitsap Golf & Country Club 3885 NW Golf Club Hill Rd, Bremerton (360) 377-0166 Course Pro: Al Patterson Kitsap Golf & Country Club is a private 18-hole, par 71 course. It is 6,329 yards long and has a rating of 70.7/125, 69.9/123 and 71.7/123. Guests pay $45 on weekdays and $55 on weekends and holidays. Club rentals are not available. Handcarts are complimentary and power carts cost $30 for two persons. A driving range, putting green and chipping area are available. A 30-minute lesson costs $35. For members and their guests, the restaurant offers lunch daily,
dinner on Wednesday and Friday, and breakfast on weekends. Lakeland Village Golf Course Old Ranch Road, Allyn (360) 275-6100 Course Pro: Randy Jensen Lakeland offers three 9-hole courses, Generation I, II and III. Generation I is a par 35, 2,584-yard course with a rating of 32.5/110. Generation II is a par 36, 3,140yard course with a rating of 35.0/126. Generation III is a par 36, 3,331-yard course with a rating of 35.1/126. Green fees are as follows: Friday $32, Weekend - $36 to play any combination of two 9-hole courses; Monday and Thursday - $28 for any combination of two 9-hole courses. Twilight rates of $22 are available everyday. Senior rates on Monday and Thursday are $22. On Tuesdays and Wednesdays the fee is $22 after 12 p.m. Lakeland Village also offers memberships. The annual fee for a single member is $1,700, and $2,700 for a family. Clubs rent for $10. Handcart rentals are $5 for 18 holes and $3 for nine holes, and power carts cost $32 for 18 holes and $20 for nine holes. Lakeland Village has two driving ranges, a putting green and a chipping area. 30-minute individual lessons are available, call for rates. Lakeland Village offers snack bar fare. Madrona Links 3604 22nd Avenue NW, Gig Harbor (253) 851-5193 Head Pro: Pat Bean Madrona Links offers 18 holes with a par of 71. Course length is 5,602 and rated 67.6/113, 66.7/111 and 64.8/106. Weekday rates are $27 for 18 holes, $20 for nine holes. Weekend rates $30 for 18 holes and $22 for nine holes. Seniors pay $23 for 18 holes and $17 for nine holes Monday through Friday. The weekend rates apply on Friday, Saturday and Sunday. Juniors pay $18 for 18 holes and $13 for nine and twilight rates are $22, super twilight are $17 all week. Clubs rent for $15, handcarts for $5.00 and power carts for $13.50 per person. * Rates may change for summer. Madrona offers a driving range, putting green and chipping area. Madrona Links Restaurant and Lounge is open for breakfast, lunch and dinner. From 6 a.m. to 8 p.m., Monday through Friday, Madrona Links offers a special for $24 which includes breakfast and golf. McCormick Woods 5155 McCormick Woods Dr. SW, Port Orchard (360) 895-0130 www.mccormickwoods.com Course Pro: Jeff Mehlert McCormick Woods is an 18-hole, par 72 course. The course is 7,040 yards long and is rated 74.3/134, 73.2/131, 70.7/124 for the men and for the ladies 74.0/134 and
71.6/127. Weekday fees are $45, 10% off for Seniors and 40% off Juniors. Basic clubs rent for $25, premium clubs for $40. Three wheel carts rent for $8 and power carts for $15 per rider. McCormick offers a driving range, putting green and chipping area. A driving range token is $5 for 35 balls. A 50-minute individual lesson costs $70 for adults and $60 for Juniors. The Club House at McCormick Woods is open weekdays from 11 a.m. to 8:30 p.m. and serves lunch and dinner. Weekend hours are 11:00 a.m. to 9:30 p.m. A nonbuffet Sunday breakfast from 9 a.m. to 1 p.m. is available. The Club House can be reached at 895-0142. Meadowmeer Golf and Country Club 8530 Renny Lane NE, Bainbridge Island (206) 842-2218 Course Pro: Ted Wurtz Meadowmeer is a nine-hole course. Par is 71, course length is 5,596 yards, and it is rated 67.7/117. Weekday rates are $26 for 18 holes or $21 for 9. Twilight weekday rates are $15, twilight weekend rates are $20, and both include unlimited golf for everyone. Seniors, Juniors and Military pay $22 for 18 holes or $17 for nine. Weekend/holiday rates apply to everyone: $31 for 18 holes or $25 for nine holes. Members only till noon on weekends and holidays. Clubs rentals are $17 for 18 holes or $13 for nine holes. Hand carts cost $5.50 for 18 holes or $3.50 for nine, and power carts cost $28 for 18 holes or $18 for nine. Meadowmeer offers a putting green and a chipping area but no driving range. A 30minute individual lesson costs $40. Meadowmeer has a snack bar with grill and offers beer and wine. Northwest Golf Range & Scott Alexander Pro Shop 368 NE Waaga Way, Bremerton (360) 692-6828 Teaching Professional: Chris Keough Northwest Golf is a driving range and an 18-hole putting course. A jumbo bucket sells for $10; large bucket sells for $8; a medium for $7 and a small for $5. For patrons 15-years-old and younger the cost is $5 per medium bucket. Irons are available at no cost; woods rent for $2 each with a $2 per club deposit. General green fees are $6, patrons 12 years and younger pay $4, and a group of 15 or more pay $4 for adults and $3 for children under 12. A 60-minute individual lesson costs $60. Call for more lesson rate information and specials. Northwest Golf has batting cages for additional recreational enjoyment. Rolling Hills Golf Course 2485 NE McWilliams Road, Bremerton (360) 479-1212 Course Pro: Tedd Hudanich Golf Round-up, page 29
GOLF ROUND-UP
from page 28 Assistant Pro: Charles Welter Rolling Hills offers 18-hole of play. Course par is 70, length is 5,936 yards, and its rating for men is 68.7/120 and for women, 71.0/120. Weekday fees are $29, and weekends are $31.50. Seniors, Juniors and Military pay $21. Clubs rent for $12. Hand carts rent for $4 and power carts for $30. Twilight rates are $21 for weekdays, $23 for weekends and power carts are $18. Discount golf packages are available. Call for more information. Rolling Hills offers a driving range, putting green and chipping area. A 60minute individual lesson at Rolling Hills costs $40 and a 30-minute less costs $20. A group of four to six can receive six lessons for $80 - $90 per person. Putter’s Restaurant and Lounge (377-7077) serves breakfast, lunch and dinner and also offers banquet services. Trophy Lake Golf & Casting 3900 SW Lake Flora Road, Port Orchard (360) 874-8337 General Manager: Lance Fong Course Pro: John Hildebreand Trophy Lake offers an 18-hole course. Course par is 72, length is 6,162 yards, and its rating is 69.7/129. Green fees change incrementally with the seasons. Green fees for this year’s summer peak season, beginning June 1, will range from $32 to $84 depending on time and day of week. Power
carts are available. Call for more rate information. Clubs rent for $50. The facility offers a driving range, two putting greens and a chipping area. Instruction is available. The Dry Fly Café offers breakfast and lunch Monday through Saturday from 7 to 11 a.m.; Sunday from 7 a.m. until 1 p.m. and lunch Monday through Sunday from 11 a.m. to 6 p.m. On Thursday and Friday, dinner is offered from 4 to 8 p.m. Village Greens Golf Course 2298 Fircrest Drive SE, Port Orchard (360) 871-1222 Supervisor: Billie Schmidt Village Greens offers 18 holes of play. Par is 58, course length is 3,255 yards, and its rating is 57.3/83. Green fees are the same everyday: $16.50 for adults. Seniors and Military can play all day for $13.20; Juniors can play all day for $11. Hand carts rent for $3.25. They offer a covered driving range, putting green and chipping area. Village Greens offers snack machines.
and $25 for 9. Twilight rates after 3:00 p.m. are $22 for weekday and $25 for weekends. Active Duty Military rates are $29 for weekday and $39 for weekends. White Horse also offers a Replay rate of $20 for weekday and $25 for weekends. Power golf carts are available at $15 per person for 18 holes and $9 per person for 9 holes. Push carts are $6 for 18 holes and $4 for 9 holes. White Horse also offers a grass driving range, two putting greens, a chipping area with sand traps and bunkers. A Players Card can be purchased which offers the golfer discounts and lessons are available, call for more information. Wing Point Golf & Country Club 811 Cherry NW, Bainbridge Island (206) 842-7933 General Manager: Bob Hollister Course Pro: Jeff D’Amico Assistant Pros: Neal White & Cory Nergaard
Wing Point Golf & Country Club is a private 18-hole facility. Course par is 71, length is 6,053 and the course is rated 69.7/128. For 18 holes, guests of members pay $60 on weekdays and $60 on weekends/holidays; $25 for nine holes during the week, and $35 on weekends/holidays. Memberships are available, call Wing Point for details. Clubs rent for $20. Handcarts are free and power carts go for $30 for 18 holes or $15 for 9. Wing Point offers a driving range, a putting green, a chipping area, pool, and tennis courts. Instruction is available, contact the pro shop for details. The restaurant is available to members and their guests. Several other courses are within a short driving distance of Kitsap County and Gig Harbor. These include Port Ludlow and Chevy Chase Golf and Country Club in Jefferson County and Bayshore, near Shelton, in Mason County. You are invited to call them directly for information on greens fees and tee times.
White Horse Golf Club 22795 Three Lions Pl NE, Kingston (360) 297-4468 Course Pro: Bruce Christy Assistant Pro: Brian Cresto White Horse Golf Club offers 18 holes with a par of 72, course length is 7,093 yards, and is rated 75.0/146. Weekday, Monday through Thursday rates are $35 for 18 holes and $22 for 9. The Junior rate is $10 after 12 p.m. seven days a week. Weekend rates, Friday through Sunday and holidays, is $49 for 18 holes
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Gateway Christian Schools hires N. Mason Chamber CEO By Tim Kelly Editor Gateway Fellowship Church has hired Mark W. Costa, president and CEO of the North Mason Chamber of Commerce, to be director of communications and development for the expanded Gateway Christian Schools. Costa will oversee internal and external marketing, communications, community relations and strategic devel-opment for the Gateway Christian School, which the church has operated in Poulsbo since 1974, and Crosspoint Academy in Bremerton, which Gateway recently acquired from Seattle-based Crista Ministries. Costa, who helped increase membership in the North Mason Chamber during his year-and-a-half tenure there, will Mark W. Costa focus on increasing enrollment at the Gateway Christian Schools. Michael Forney, Gateway’s executive director of schools, said the Poulsbo campus has 124 students in kindergarten through eighth grade this school year.
Correction An article in the Kitsap Peninsula Business Journal’s April edition incorrectly stated that Sound Publishing had closed the office of the Port Orchard Independent. The office had not closed as of the article’s publication date, although the closure and consolidation of some of the Independent’s operations into the Silverdale office of the Central
Crosspoint, a K-12 school formerly called King’s West that had more than 400 students a decade ago, has a current enrollment of 243, Forney said. “When they acquired the campus in Bremerton it was apparent there was a need for a communications and development position that would oversee both Cross-point and Gateway,” Costa said. “They’re (in) the season now for new student enrollments for the 2012-13 academic year.” Costa, 50, whose family joined Gateway Fellowship when he moved to the area and took the North Mason job in the fall of 2010, said the schools have “a tremendous group of people who are really dedicated to the mission of Christian education.” In addition to bringing Costa on board, Gateway Christian Schools has hired Nick Sweeney, who was the head of King’s West school from 2000 to 2007, to be head of schools for Gateway Christian and Crosspoint. Costa was scheduled to begin April 30 at his new job, which offers a shorter commute to his Bainbridge Island home. Before moving to Kitsap County, Costa had worked in the travel and cruise business and had been an executive in charge of membership services in the private club industry. Though his new job
is with a nonprofit, he said his marketing and communication experience is a good fit. Costa said the North Mason Chamber of Commerce executive committee has known for a few months of his likely move, and he’s worked with them to ensure a smooth transition. “Things here at the chamber have been going so well, and we wanted to make sure that momentum continues,” he said. “2011 was a really solid year for us; we had record membership growth, and added well over 110 new members.” That was echoed by Rhonda Brown, chair of the chamber board. “Mark has just done a phenomenal job at helping us
expand our membership,” she said, noting also the high retention rate among chamber members that resulted from “bridge-building” efforts that Costa led in the North Mason community. “I will be sad to lose him at the helm, but we certainly wish him well,” Brown said. She said Costa’s successor as president and CEO of the North Mason Chamber will be Greg Oldham, a real estate agent who lives in Belfair and is 2012 president of the board of directors of the Port Orchard Chamber of Commerce. Oldham previously served as the North Mason Chamber’s board chairman.
Kitsap Reporter was originally planned for mid-March. The Port Orchard Independent’s former office on Mile Hill Drive did not close until mid-April. The Independent has rented a small space in a different Port Orchard office building for shared use by the paper’s two reporters and two ad sales reps. Also, Sound Publishing currently has 448 employees.
May 2012 Kitsap Peninsula Business Journal • KPBJ.com 31
32 • Kitsap Peninsula Business Journal • KPBJ.com May 2012
Smart employers accommodate needs of parents in the workplace By Julie Tappero West Sound Workforce May and June always put a spotlight on parents, as we celebrate Mother’s Day and Father’s Day. Many of our co-workers are parents, and we all realize that although their children don’t generally come to work with them, they are still parents during their workdays. Our policies, practices and workplace culture matter to these employees. According to the BLS, 34.5 million families in the U.S. in 2010 had children, and 87 percent of them had an employed parent. Seventy-one percent of mothers with children under 18 were in the labor force, and 64 percent of those had children under the age of 6. Both parents were working in 58 percent of the families. These statistics demonstrate that parents are clearly a factor in our workplaces! We know that when issues affect large segments of the population, legislation and regulations follow. This is definitely true when it comes to parents and the workplace, beginning with the pregnancy. The Pregnancy Discrimination Act forbids discrimination based on pregnancy in any employment decision. You cannot refuse to hire someone because they are pregnant, nor can you refuse to hire someone because you are concerned they might get pregnant. You also cannot terminate someone due to their pregnancy, or consider it in any decision related to job assignments, promotions, layoff, training, benefits, etc. Just remember, more than 50 percent of our workers today are female, and our government recognizes that pregnancy is a normal and expected part of a woman’s life. You are required to give your employee any medical leave prescribed by her health care provider for her pregnancy. This does not need to be paid time off, unless your leave policies provide for paid sick time. If she is temporarily unable to perform her job as a result of the pregnancy or childbirth, you must accommodate her as
you would any other disabled employee. Some of these impairments may even fall under the Americans with Disabilities Act. The laws on this subject do vary for companies by size. For companies of 50 or more employees, rules governing the Family & Medical Leave Act (FMLA) apply, both to mothers and fathers, as well as for adoptions and foster parents. For very small companies (fewer than eight employees) some exceptions do apply. For more detailed information, you can visit www.lni.wa.gov or the Washington Human Rights Commission at www.hum.wa.gov. Don’t be caught unaware of your employees’ rights! In 2011, there were 5,797 complaints of pregnancy discrimination filed with the EEOC, and over $17 million in fines were levied against corporations. A lot has been written recently about Seattle’s new ordinance protecting the rights of breastfeeding mothers. Do nursing mothers have any rights in their workplaces outside of Seattle? They answer is yes, they do — sometimes. Washington state law does not protect nursing mothers in their workplaces, although it does have a program to promote and support them by allowing employers to follow certain guidelines under which they can advertise their workplaces as being “infant friendly.” On the federal level, the day Congress passed the Health Care Reform Act, nursing mothers garnered protection in the workplace if their employer has 50 or more employees. In these cases, employers must allow nursing moms to take reasonable break times during work to express milk. The employee may take as many of these unpaid breaks as are necessary. The employer is responsible for providing a private non-bathroom space for the employee where she will not be interrupted. The Department of Labor’s Wage and Hour Division is responsible for enforcing this law, and more information can be found on their website. If you’ve been a parent you know that children get sick, and children in day care seem to pass illnesses around. As employers, we have to accept that our employee-parents will have sick children that they occasionally must take care of. The state’s Family Care Act, which applies
to all employers regardless of size, says that if you provide paid time off to your employees, you must allow them to take that time to care for a sick child, without disciplining, demoting or discharging them. The definition of a parent is liberal, applying to anyone who is in a position to parent a child (including step-parents, legal guardians, foster parents, etc.), regardless of the child’s age, meaning it extends to adult children. While I’ve only touched on some of the issues and protections for parents in the workplace, it’s obvious that mothers and fathers are a large demographic that have the attention of our lawmakers. We all realize that mothers are in the workforce to stay, and they are our co-workers, bosses and business owners. How does this affect the non-parents in our workplaces? According to the BLS, in 2010 almost 59 percent of the population with no children under the age of 18 were participating in the workforce. This means we must find ways to provide the necessary work/life balance to parents, and meet the legislated requirements, while reducing the potential conflicts that may result between working parents and employees that do not have children. My bachelor brother has long complained that when assignments arise requiring someone to be out of town for extended periods of time, or to work late or on weekends, he inevitably draws the short straw. The perception is that it’s easier for him, since he doesn’t have a family at home. His argument is the opposite: since he doesn’t have anyone else at home to pick up the slack in his absence, it’s actually harder on him. In some companies, employees derive more value from benefits packages if they have a family. Working parents often
seek flexible work arrangements and take unexpected days off, requiring their coworkers to pick up the slack in their absence. It is easy to see how this can become a source of conflict. Smart businesses will recognize that all employees, regardless of their family status, require work/life balance, and that “families” can be defined in many different ways. Efforts need to be made to accommodate all reasonable requests, and across-the-board fairness has to be our goal. Benefit packages today can be designed with flexibility and choice, ensuring that family situations don’t result in inequality. In today’s world, with grandparents bringing up their grandchildren, more couples choosing to be childless, women delaying motherhood, more single parents, more working parents, the redefinition of families, and on and on and on, businesses have to change with the changing times. We must attract and retain the best talent available in order to compete in this everchanging world, and that means our work family must be a diversely happy one. (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@westsound workforce.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.)
State endorses lifelong learning benefit for workers Washington has become the first state in the nation to formally recognize a voluntary employee benefit program that encourages workers to continue their education with assistance from their employer. Senate Bill 6141 legally defines Lifelong Learning Accounts (LiLAs), which are savings accounts funded through matching employer-employee contributions and dedicated to covering the education costs of the participating employee. The law builds on a pilot program that has operated since 2009 with employers in Thurston, Lewis, Pacific and Grays Harbor counties. The bill does not provide any state funding but will make it easier for the program to secure additional private support and expand to more employers statewide.
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Energy Week blends science, engineering, entrepreneurism By Tim Kelly, Editor It was part science fair, part home show and, in a way, part group employment interview. About 75 Bremerton High School students participated in Energy Week held April 18-20. They were divided into teams tasked with designing a “home of the future” that uses alternate sources of energy such as solar, wind and geotherman; and marketing their model to prospective investors — community members who volunteered to judge the student presentations. Besides challenging the students to apply what they’re learning in their Green Tech, Intro to Engineering and AP Environmental Science classes, each group also built a windmill and vied to see whose design could lift the most weight using wind power. The program was put on by Washington Business Week, which has been offering its business training programs for high school students since the 1970s, both as weeklong summer camps on college campuses and in-school programs. From the original Business Week program — attended in the past by some of the volunteers who worked with the Bremerton students as “company advisers” — the offerings have been expanded to include career pathways in health care, construction and manufacturing. Energy Week was added last year as a summer session at Central Washington University in Ellensburg, and it was
Tim Kelly photo
A student answers questions from one of the judges evaluating presentations of model homes designed with energy conservation features during the Energy Week program at Bremerton High School. The three-day event sponsored by Puget Sound Energy was a shorter version of one of weeklong summer programs offered by Washington Business Week on college campuses. presented for the first time as an in-school program at Bremerton. The facilitator, Herman Calzadillas of Washington Business Week, told students they would be studying “how energy is created, consumed
and conserved.” The program was sponsored by Puget Sound Energy, and Vice-president of Corporate Affairs Andy Wappler — a former Seattle TV weatherman and
certified meteorologist — gave an engaging keynote address on the first morning of the three-day session. He discussed with students the importance of developing “greener” sources of energy, but also the the critical need to understand the trade-offs between energy, environment and economics that are involved. Wappler also said that there will be ample job opportunites in the energy industry for students like the ones in the Career and Technical Education curriculum at Bremerton High School. “We’re going to need some of those folks to come work for us,” he said after his talk. PSE recently brought its third wind farm online, in Garfield County in the Palouse region of southeastern Washington, and Wappler said the three facilities can supply about 9 percent of PSE’s electricity. Wappler said the biggest challenge is finding a way to store electricity generated by wind turbines. “If you solve the energy storage problem,” he told the students, “you’ll be the next Bill Gates.” Whether or not there’s future billionaire entrepreneur in the Energy Week group, the students will gain a more enlightened perspective on how their homes and schools are lighted and heated. “I don’t think you’ll ever flip that light switch again and not think about it a little differently,” Wappler said in concluding his talk with the students.
Group forms to seek affiliation for Port Orchard in Main Street program rejuvenation of our downtown core, a group comprised of business and property owners, public officials and citizens have decided that we should take action, and not just continue to wait.” The group’s interim board of directors includes City Council member Cindy Lucarelli; Kim Punt, owner of an insurance agency on Bay Street; local attorney Tracy DiGiovanni; and Rita Mitchell, a property owner in the downtown area who has previous experience working with nonprofits. To become a Main Street community, a nonprofit organization specifically desig-
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nated for revitalization efforts must apply for membership, attend training, and meet a stringent set of criteria prescribed by the National Main Street Trust and Washington State Main Street Program. Participating organizations become the drivers for federal, state, and local funds that can be drawn in for infrastructure investment, building and façade improvement grants, and promotions and events that attract tourists, businesses and investors. The Port Orchard group received
$5,000 from the Cedar Cove Association as seed money for the project. Childs said if the group advances to the second membership level as a Main Street Tax Incentive Program Community, it will be able to direct a portion of state B & O taxes paid by participating businesses to be invested directly in their hometown. Founding members of the Historic Port Orchard Revitalization Association will attend the Main Street state conference in Chelan this May.
May 2012 Kitsap Peninsula Business Journal • KPBJ.com 33
Local volunteers have announced the creation of a nonprofit organization dedicated to the revitalization of Port Orchard’s historic commercial district. Known as the Historic Port Orchard Revitalization Association, or Revitalize Port Orchard, the group filed for affiliate membership in the Washington State Main Street Program. “Main Street programs have successfully helped to kick start the revitalization efforts in over 1,200 communities in 40 states across the country,” said Shannon Childs, interim board president of the new group. “After years of studies and talking about the
2012 Audi A7—A luxurious hatchback
34 • Kitsap Peninsula Business Journal • KPBJ.com May 2012
By Bruce Caldwell Luxury and hatchback are terms that don’t seem to belong together, but the new 2012 Audi A7 has added practicality to their latest luxury/sport sedan. We don’t expect to see many A7s at Home Depot with lumber poking out of the hatch; weekend luggage and golf clubs are more likely. The A7 is a primarily an upscale sport sedan with added functionality. Walkaround: The Audi A7 is a handsome car with an imposing presence. There is no doubt that this is a car of substance owned and driven by people of similar means. The A7 exudes Germanic Autobahn muscularity. It looks fast even when parked. Paint quality and body panel fit were first class. We like the easily recognizable Audi grille and trick Xenon headlights. The lights provide excellent nighttime visibility. The 2012 Audi A7 has style with a capital S. Interior: We love Audi interiors, at least the front seats. With the exception of the extra luxurious A8 most Audi rear seats tend to be short on legroom. This might have something to do with Audis being drivers’ cars. We greatly prefer driving Audis to riding in them, but this could be an issue for transporting important clients/guests. Front seat room is beyond stretch-out; it’s just short of lay-down. The thick, contoured leather-wrapped steering wheel has tilt and telescopic features with a long travel that makes finding the ideal driving position easy. The heated, power lumbar
adjustable leather seats are both comfortable and supportive. They’re great touring seats. As spacious as the front seats were I felt crowded in the rear seat. The sexy, sloping roofline looks great outside, but inside my head hit the headliner. My knees were pressed against the seatbacks even with the front seats moved up a ways. I also hit the top of the arched doorjam b getting in and out of the back seat. The rear seats fold pretty flat, which adds to the hatchback’s versatility. The power sunroof was on the small side. Materials, colors, and textures all combined to make a handsomely stunning interior. The interior wood was as nice as can be found in any luxury sedan. Plentiful controls take a little acclimation, but work fine once you’re familiar with them. The sound s ystem/electronics/communications features were first class. We appreciated the side assist option for blind spot alerting. Under The Hood: The wonderful supercharged 3.0-liter V-6 engine is a precision powerhouse producing 310 horsepower and 325 lb-ft of torque. The power is smoothly transmitted to all four wheels via an 8-speed automatic transmission and Audi’s famous Quattro all-wheel-drive system. Even though the A7 weighs a full two tons it’s capable of sub-five second 0-60 times and quarter mile times in the low 13-second range. Those are muscle car performance figures from a luxury sedan. Braking performance is equally impressive thanks to 14-inch and 13-inch vented disc brakes.
The EPA rates fuel economy at 18/28 city/highway, but with all that exhilarating power on tap we didn’t worry about fuel consumption. We were lucky to break into the twenties. Behind The Wheel: The Audi A7 is a car that deserves to be driven long and hard. It seems wasteful to squander its performance attributes running shopping errands. All areas of handling, acceleration, and braking were excellent. The super comfortable driver/front passenger accommodations and enough luggage capacity for a crosscountry adventure just beg owners to take a couple weeks off and hit the open road. Whines: Our A7 tester had the optional 20-inch Sport Package, which included handsome 20-inch alloy wheels and summer
s g u2012 n i t vo und r o o uf S yo est k an f W Th est o B #1
performance tires. Those tires are great in good weather, but it snowed during part of our test period. Even with the world famous Audi Quattro system we struggled getting up our steep driveway. We also had trouble on the icy ruts after th e snowstorm. The base 255/45R18 tires would have been better. The right tires are important for our climate. Major option packages can put a major dent in the car’s bottom line. For example, there is a Bang and Olufsen sound system that lists for $5,900 on top of the mandatory $6,300 Prestige Package. For that price we’d buy better ears. Marginal rear seat legroom and headroom were two significant negatives. Bottom Line: The 2012 Audi A7 is a difficult car to quantify. From a strictly practical standpoint an A6 would be a better choice, but from an emotional perspective the A7 has a Siren’s song that’s hard to resist. The hatchback feature does improve practicality, but that same roofline penalizes rear seat passengers. The 2012 Audi A7 is an odd mix of performance, luxury, and practicality, but one we’d love to own. A luxury hatchback sounds like an oxymoron, but Audi has made it work.
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American Honda Motor Co., Inc. has announced that Leviton Manufacturing Company has been selected as its preferred Electric Vehicle equipment provider for customer and dealer EV charging. Honda will debut two battery-electric vehicles beginning with the 2013 Honda Fit EV this summer, and the Honda Accord Plug-In Hybrid Sedan next winter. The 2013 Honda Fit EV battery-electric car, based on the popular Fit, targets an estimated 123 city-mile range per charge (76 mile range combined adjusted city/highway) and can fully recharge its battery in as little as three hours when connected to a 240-volt circuit. The Accord Plug-In Hybrid Sedan uses an all-new, two-motor hybrid system which continuously moves through three different modes - all-electric, with up to a 15 mile per charge range.
2012 Ford Fiesta — A small car standout
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The side hindquarters of the hatchback comes together with vertically arrayed taillights bracing a liftgate hinged far enough forward that opening it requires minimal space behind the car. A spoiler sits atop the rear window, while the lip running the full width of the liftgate ties into the upper side character line. Interior: The quality of interior materials is on a par with — or actually a tick or two above — the standard for cars in the Fiesta’s class. Comfortable seats offered enough side and bottom bolsters to keep occupants properly positioned without obstructing ingress and egress. Our test model had the optional leather seating surfaces, armrests, and heated front seats. The dominant dashboard feature isn’t the instrument panel, with its analog speedometer, tachometer and fuel gauge, but the screen at the center of the dashboard. The Fiesta features the voice activated SYNC infotainment system that augments the traditional AM/FM/CD/MP3 stereo setup. Audio and podcasts can be streamed into the sound system via a Bluetooth link to a smartphone. The system does rely on cell phone coverage, and users should be forewarned that when connected to those internet streams, the clock is ticking on that cell phone user’s data plan. Non-voice audio controls and creature comfort settings are basic knobs and buttons arrayed and sized for ease of use with minimal distraction. Under The Hood: All 2012 Fiesta models are equipped with the same 120horse, 1.6-liter four-cylinder engine. The standard transmission is a 5 speed manual; optional is the 6 speed twin clutch,
electrically shifted, automated manual — which our test vehicle was equipped with. Behind The Wheel: I found the Fiesta more fun to drive than I anticipated. It’s right at home zipping around town and running errands. Its size allows it to slip conveniently into those fleeting gaps in stop and go urban traffic, as well as easily into parking spots with no backing and straightening. Ride quality was at least equal to everything in this very competitive market segment, but seating 4 adults comfortably in the Fiesta is another story. The 120-horse 4-banger takes the daily commute in stride, with relatively smooth
ride quality. To my surprise, wind and road noise is decently muted — especially for a car this size, this low to the ground. Steering is certain, with the Fiesta going exactly where you point it, and it doesn’t lean much in corners at responsible speeds. Fuel economy is an EPA estimated City/Highway rating of 29/38 miles per gallon for the automatic against 28/37 mpg for the 5 speed manual. Whines: I found the Fiesta’s low profile a little difficult for ingress and egress with the front seat on its highest setting. The placement of the USB slot in the center console is within problematic spill distance of the conjoined, three-slot cupholders. The amount of truly usable cargo space limits what you can bring home from Costco or Home Depot. Bottom Line: The Ford Fiesta is a fresh, fuel efficient runabout that will hold its own in an increasingly competitive — and important — market segment.
Land Rover sales up 20 percent for 2011 With 2011 sales up a remarkable 20 percent, Land Rover has scored the largest improvement, percentage-wise, of any of its competitors. Combined 2011 Land Rover sales eclipsed those of BMW, MercedesBenz, Porsche, Lexus and Audi, making it the company’s best sales year since 2007.
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By Lary Coppola In my view, the Ford Fiesta rates well against an impressive choice of recently redesigned subcompacts. Completely redesigned in 2011, Fiesta offers no significant changes for 2012. Any bugs have been worked out in the first year, yet the design is still new enough to offer the latest advances in safety and fuel efficiency. Model Lineup: The 2012 Ford Fiesta comes as four-door sedan or five-door hatchback (our test vehicle, which this review will focus on). The Fiesta hatchback has two trim levels, SE, and SES. The SE comes standard with air conditioning, cloth upholstery, a new driver’s-seat armrest, 60/40 split fold down rear seatback, four speaker, 40 watt AM/FM stereo, power door locks and outside mirrors with new spotter mirror, carpeted front floor mats, rear seat heat ducts, and cloth door panel trim, steel wheels with eight spoke hubcap, that wear 185/65R15 tires. Option packages include the Microsoft SYNC entertainment center with six speakers and 80 watts, redundant audio controls on the steering wheel and USB equipped center console, and a sport appearance group that includes painted aluminum wheels, cruise control, LED running lamps and deck lid spoiler. The 2012 Fiesta SES hatchback also offers a new premium sport appearance package with polished alloy wheels, blacked-out trim, and on manualtransmission models, a numerically higher final drive ratio. Also new is a two-tone leather option our test vehicle featured, available in black-and-red or black-andwhite. Single-tone leather is available in plum, cashmere, and black. Other options include a power sunroof, keyless entry keypad, illuminated interior accessories, cargo organizer, and various appearance items. Walkaround: The Fiesta hatchback offers a European-like profile — wedged side character lines and rounded rear face. The lower grille opening looks like a reverse trapezoid, while the body colored treatment of the hatchback’s upper grille is a better fit for the car’s proportions. Viewed head on, the stance is almost aggressive, with a raked windshield and front tires visible outside of the leading edge of the fenders. However, viewed from the side, the front wheelwell arch slightly overwhelms the parallel character lines on the upper and lower door panels that lead to wraparound headlights.
Publisher Lary Coppola Editor Tim Kelly Advertising Sales Dee Coppola Creative Director Steve Horn Webmaster/IT Greg Piper Graphic Design Kris Lively Office Administration Jennifer Christine Web Host PCS Web Hosting LLC Contributing Writers Rodika Tollefson Don Brunell Kathleen Byrne-Barrantes Dan Weedin Ron Rada Julie Tappero Paula Bartlett Jason Parker
36 • Kitsap Peninsula Business Journal • KPBJ.com May 2012
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Long-term vision is what’s missing in Olympia We finally have a state budget, one that took two special sessions and one regular session to reach an agreement. Going back to last summer, the leadership in Olympia knew we had a budget problem, but we didn't get across the finish line until they started to realize that dragging the budget efforts into a third special session would get the voting public upset. So why did it take so long? First, we had a lame duck governor who had little or no leverage in CARY BOZEMAN bring-ing the My Turn two parties to the table. (Lord knows she tried, but we call it lame duck for a reason.) Then the Republican Senate went rogue when it recruited three members of the Democratic Party and announced a budget without informing the governor. This behavior does not produce the best results for our state or lead to longterm problem solving. In most cases, it simply pushes the problem to the next session where we will go through this exercise all over again. So we're left with
two parties who find it harder and harder to work together and to find compromise until the gun is finally held to their head. We cannot allow this political behavior to go unnoticed, as if this is all we should expect out of our state elected officials in Olympia. The budget is their first and most important task. It should take priority over all else and should get done on time. Big problems require leaders who know what to do and then go out and do it. So how do we get that for our state? I believe strongly that there is a key missing ingredient — a shared vision of our future that guides our budget priorities. We should start with a long-term vision for our state, one that addresses the massive systemic issues that we face like schools, transportation and more. The vision should include a strategic plan that can be sustained financially and supported by the people of the state of Washington. At the end of this exercise, we should have a shared understanding of where this state wants to go in the next 10 years and how we might get there. (I cannot imagine successful companies like Boeing, Microsoft, etc. not having a long-range plan and a projected budget to support that plan; why should we expect less of our
state?). A plan means someone is held accountable for getting it accomplished, something we need to require of our elected officials. Without a vision and a plan for the future we will continue to come up with short-term fixes that kick the problem down the street or to the other party for someone else to solve. We cannot continue to try and problem solve in two-year segments, using an ineffective, politicized budget process to try to have the important discussions and find common ground about our future. Today, not tomorrow, we must begin developing a 10-year strategic plan that lays out the Vision for Washington's Future. A plan that encourages economic growth, invests in our schools and infrastructure, and protects the most vulnerable. Then and only then will we have a set of goals and priorities that will guide our budget decisions and give the state legislature the opportunity to rise to the challenge and produce their best work, the kind of work we elected them for.
ROLFES’ BILL ENCOURAGES NEW ENTREPRENEURS
receive benefits while dev-eloping their own small business start-ups. Rolfes’ senate bill was inspired by a program active in Kitsap County called Washington Community Alliance for SelfHelp — also known as Washington C.A.S.H. Whether people have been laid off in the middle of their career, have just exited military service or have an idea for a new product, the program helps them
match their dreams with a workable business plan. Thanks to this legislation, entrepreneurs are able to attend business start-up classes and continue in the free business support group program and not have to report weekly job searches. Dozens of local entrepreneurs have participated in the SEAP program and the
To the Editor: Thanks to state Sen. Christine Rolfes for championing the extension of the SelfEmployment Assistance Bill (SEAP) which makes it possible for those who are qualified and are receiving state unemployment bene-fits to continue to
Cary Bozeman is former mayor of Bellevue and Bremerton, and former CEO of the Port of Bremerton.
Letters, page 37
Could Seattle put on a World’s Fair today? and the development process — have changed. A br idge replacement is finally under way, but only after years of haggling, legislative wrangling and lawsuits. No project can garner 100 percent support — there will always be proponents and opponents. Even the world’s fair had its detractors. But in the end, the 1962 World’s Fair was a huge success and put Seattle on the map. The 1974 Spokane World’s Fair did the same and revitalized that city’s downtown. Bot h happened because vision-aries like Eddie Carlson and Joe Gandy in Seattle and Luke Williams in Spokane weathered the storm and refused to give up. In some respects, we’ve become our own worst enemies, allowing the process to interfere with progress. In Vancouver, it’s a fight over a new biomass boiler. Clark County wanted to replace the existing boilers in its courthouse complex with a biomass boiler. The p roposal drew such strong opposition from neighbors and city leaders that the project missed a financing and was canceled. It didn’t matter that the wood waste project was more energyefficient, saved the taxpayers money and reduced overall air pollution levels; it fell victim to the NIMBY syndrome — not in my back yard. In Skamania County, a fight over the construction of a wind farm erupted into a major la wsuit. Project opponents again used the NIMBY principle, citing an array of issues ranging from scenic and wildlife impacts to mitigation measures such as nighttime lighting on the turbine blades. The scope of the project was eventually reduced, and the development is now on hold, because the developers say the project is now not economically viable. We still have visionary people who are smart, innovative a nd communityminded, but today the cards are stacked against them. Rather than block them at every turn, perhaps we should start clearing a few hurdles so we can make great things happen again, like we did with the 1962 Seattle World’s Fair. (Editor's Note: Don Brunell is president of the Association of Washington Business. AWB's 3,700 members range from the state's largest employers to the smallest, and employ over 600,000 workers in our state. Visit AWB on the Web at www.awb.org.)
LETTERS
from page 36
effect of their businesses can already be measured. This is a win-win program and we commend Sen. Rolfes for her leadership and continued interest in small business development.
Stuart Walton Kitsap Program Manager & Business Specialist, Washington C.A.S.H.
May 2012 Kitsap Peninsula Business Journal • KPBJ.com 37
On April 21, 1962, the Seattle World’s Fair opened. The “Century 21 Exhibition” ran for six months, drew 11 million visitors, turned a profit and left the Northwest with a wonderful Seattle Center. A half-century later, many of the fair’s landmarks remain, and the73-acre center is a gathering place for people from all walks of life. It is Seattle’s Central Park. The Space Needle has become Seattle’s landmark. Conceived in an architect’s notebook, it was constructed in eight months at DON BRUNELL a cost of roughly AWB $3 million in private funds. You have to wonder if a project of this scope and magnitude could happen today with endless hoops to jump through and mounds of government red tape. Back in 1962, people argued about projects — but then they compromised and moved f orward. Today, there is endless debate over every detail, and the losers sue. In the end, projects die by litigation, indecision and delay. Meanwhile, costs skyrocket and projects become too expensive. It is like bleeding to death by a thousand cuts. Every project, large or small, has its opponents. Everyone wants their say and their way. That’s how our system works. But there comes a time when the arguing and delays must end and compromises must be made. Case in point: the SR 520 bridge, another massive infrastructure project from the 1960s. Gov. Al Rosellini proposed building the floating bridge across Lake Washington just south of the University of Washington campus. It was badly needed because the only other floating bridge across the lake was overcrowded. Starting in 1963, a 35-cent toll was levied on moto rists crossing the new floating bridge. That toll ended in 1979 when the construction bonds were retired. While in hindsight, it would have been better to keep the tolls in place to pay for maintenance, expansion and improvements, the compromise was reached and the bridge was built. Today, the effort to replace that bridge is the perfect example of how times —
Random Thoughts on politics and customer service… Our state will be forced to hold a special election in November to replace former U.S. Rep. Jay Inslee for just one month — an election that will no doubt be confusing for voters, burdensome for candidates seeking to replace him, and enormously costly for us taxpayers — at a time when we can least afford any unexpected additional and/or unnecessary expenses. Inslee, a Democrat, as you know, resigned his congressional seat so he could campaign for governor on a full-time basis. Democratic Gov. Chris Gregoire and Republican Secretary of State Sam Reed have both said the state is required under the U.S. Constitution to hold a special election to fill that vacant seat, even though whoever wins it will more than likely only physically serve in the other Washington for about a week — if at all. It’s also my understanding that whoever is elected will also be entitled to all the lifelong benefits that former members of Congress accrue. Not a bad deal for someone. The November election, which will take place on the same ballot as the presidential vote and other state races, includes the governor’s race where Inslee’s name will appear. Making things even more confusing for voters is the fact that two items for electing a 1st District representative will appear on the same ballot — one to replace Inslee, and the other to elect who will represent the new 1st District, as Congress transitions to its new district boundaries. Gregoire and Reed explored the possibility of holding a special election under the new 1st District boundaries to keep things simple. But that would have resulted in some residents briefly having
two representatives in Congress while others had none. Inslee claims he delayed his resignation to save the state money. Had he resigned before March 6, the state would have had to call a special election this summer to fill his seat for the remainder of the term. All the ballot confusion aside, Reed said that delay will save the state some money because the special election can be held at the same time as the general in November. However, Reed’s office also says it will cost taxpayers an extra $770,000 to pay for both the primary and general elections. I don’t know about you, but I LARY COPPOLA have to wonder The Last Word why Inslee didn’t check all of this out before announcing his resignation, and if it isn’t a serious clue into his financial acumen — or lack thereof. Personally, since he created this mess, I believe he should pay for it out of either his campaign war chest, or his own pocket. And if he isn’t willing to do either, then the state Democratic Party — not the taxpayers — should bear the cost since he is their standard bearer. After all, they didn’t have any problem coughing up a million bucks to pay for the hand recount in the 2004 governor’s race where after two machine recounts, Dino Rossi was elected governor. I saw where New Jersey has eliminated its state sales tax on breast implants. I guess you could call that a repeal of the flat tax.
Quote from Ben Stein: “Fathom the hypocrisy of a government that requires every citizen to prove they are insured — but not everyone must prove they are a citizen.” From our “Am I missing something here or what?” Department comes this… The food stamp program, run by the Department of Agriculture, is proud to be distributing the greatest amount of food stamps ever. Meanwhile, the National Park Service — also part of the Department of Agriculture — implores us, “Please do not feed the animals” — because the animals may grow dependent and not learn to take care of themselves. From the Customer Service Horror Story file comes this: I recently had the very worst customer service experience of my life dealing with the travel Web site Hotels.com. I had booked a room online. However, my flight would be getting in around midnight, and after collecting my checked baggage, and picking up my car (Thank you Nissan), I wouldn’t be getting to my hotel until what would technically be the next day So before booking, I called Hotels.com and asked which day to book the room for. They told me to book it for the actual day of my check-in since it would be after midnight. So I did. Imagine my surprise when I called the hotel — which was listed on Hotels.com’s site as being adjacent to Chicago’s O’Hare Airport, but in reality was about a 30minute drive away — for some driving directions, and they told me I didn’t have a reservation for “that night,” and couldn’t
check in until after 3 p.m. of the same day. By now it was about 1 a.m. I called Hotels.com’s so-called customer service line, and was disconnected four times before I actually got to speak with someone. She told me — in very broken English — that it was my mistake. I explained I had called first to confirm which day to book the room for, and followed instr uctions. But according to her, it was my problem and she couldn’t help me. I asked to speak to a supervisor, and got one after seven minutes on hold who spoke even worse English than the representative, and was about as rude as it is possible to be to a customer at 1:30 a.m. Long story short, I asked him to just cancel my reservation and said I’d find myself a room somewhere closer. He said he couldn’t because their computers were down and to call back the “next day.” Imagine the discussion we had about which “next day” he meant. Anyway, consider this your warning about dealing with Hotels.com. Finally, I am simply amazed by how some people form their political opinions — refusing to even consider information outside their comfort zone. I believe this has helped lead to the level of political polarization we have in this country today. Liberals refuse to believe anything conservatives have to say has any merit, but conservatives are just as bad. And therein lies the problem — spending way too much time listening to only those who agree with us, as opposed to being open to new information that could have a positive impact. In my opinion, it is this that has brought us to the pathetic state American politics has descended into.
38 • Kitsap Peninsula Business Journal • KPBJ.com May 2012
Relieved to be back in business as Business Journal editor I did not anticipate a second shakedown cruise in less than a year, but here goes, starting over again in a new job. And it's one I'm glad to have here at the Kitsap Peninsula Business Journal, even though I truly enjoyed my previous job as editor of the Port Orchard Independent newspaper and expected it would be a longterm gig. Didn't work out that way, though. Just seven months after I moved here last summer from Yakima — and only a couple months after signing a mortgage to buy our family a house — I was jettisoned as Sound Publishing made some extreme (and illadvised, I believe) staff cuts in a desperate attempt to keep its sinking ship afloat. To be sure, I was stunned and angry to be cut loose despite my efforts to improve the quality of journalism in the Independent, and to bring a more open-minded and inclusive approach to news coverage in the community. Numerous people noted and welcomed the improvements they saw in their local newspaper. Now that paper appears to be backsliding — which is obvious despite the spin spewing from its new out-of-town
publisher — and I take no satisfaction in making that observation. Port Orchard deserves a better newspaper than the sloppily edited version Sound Publishing puts on the streets these days. But while I could rant about being dumped by a company that in my view was TIM KELLY neither fair nor honest Editor’s View with me, it seems a better choice to be grateful for the opportunity to continue working as a journalist and to work for a well-regarded business that's not swirling around the drain. As for getting hired as editor of this publication, Lary and Dee Coppola thought I'd be a good fit to work with them in maintaining and expanding the excellent regional business coverage KPBJ provides in print and on its impressive website. Let me be right up front in acknowledging that Lary offered me this job primarily
because of my coverage of city government and the controversial mayoral campaign, when he was Port Orchard's incumbent mayor running for re-election and I got to know him as editor of the local newspaper. Although I wrote numerous articles, columns and editorials exposing the shady group that smeared Lary in that nasty campaign, it wasn't because I supported or endorsed Lary. He's made the observation that my reporting wasn't always favorable to him, but it was fair and evenhanded. As a journalist, I regard that as a compliment. Lary has also made clear that I will have an independent voice in columns I write here. He didn't hire me because our views are identical on politics or any other relevant issues, but I think what we have in common is being honest and direct in dealing with people and expressing our views. • • • Although I noted earlier that the Port Orchard Independent is in decline due to poor management, reporter Brett Cihon (a fine young man whom I hired and thoroughly enjoyed working with) deserves credit for his recent story about Port
Orchard Mayor Tim Matthes failing to fulfill his campaign promise to senior citizens that he would restore broadcasts of City Council meetings on local cable TV. Matthes seems genuinely baffled when confronted with his own statements from the campaign now that he's in office. But the curious thing is how Matthes ever got this idea that if he opted out of cityprovided health insurance — because he has benefits as a former federal employee — then as mayor he could “spend” the money that would have paid his premiums to have meetings televised. Does any public or private employer operate that way? Matthes should have informed himself about how such things work before he made a ridiculous campaign pledge. And as for his statement in the newspaper that "I have forgoed $20,000 of my salary," that is both utter nonsense and cringeworthy grammar (if he was accurately quoted.) If Matthes doesn't under-stand the basic distinction between salary and benefits that make up his compensation, then heaven help him when he tries to grasp the complexities of a city budget.
BREMERTON CBA498642 $1,092,500 This 2.18 acre Commercial parcel is across the street from new WINCO foods and located at uptown Bremerton plat of Bay Vista. Excellent access and some exposure from St. Hwy 3. Victor Targett, CCIM for details 360-731-5550. BREMERTON CBA486951 $110,000 Downtown Redevelopment in Bremerton offer one level Commercial retail/office space with 1,240 SF, 2 restrooms, 5 parking spaces plus on street parking in an area of redevelopment. Victor Targett, CCIM for details 360-731-5550. BREMERTON CBA481338 $189,000 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. Victor Targett, CCIM for details 360-731-5550. $225,000 Silverdale MLS321866 Fully Developed industrial lot in an eight-lot development. Prices vary based on public visibility. Lots 1-5 have strong public visibility. Quality controlled by CC&Rs. Retail activity may include - plumbing, electrical, tools, paint, fasteners, auto parts, home decorating, etc. Owner can build-to-suit. Bob Guardino 360-692-6102/360-710-7844.
Kingston MLS306623 $270,000 Newer 3,360 sq.ft. building with plush office and kitchen, large loft area, and two bathrooms. Building is insulated and has four, 12' bay doors. The office, bathrooms and kitchen are very well appointed and presentable to customers. Bob Guardino 360-692-6102/360-710-7844. Bremerton CBA500689 2,000 – 18,000 sq.ft. of built out medical space available across from Harrison Hospital. Very competitive pricing. Great access and parking. Joe Michelsen 360-692-6102/360-509-4009. Poulsbo CBA454043 2 very nice office suites and an 11,000 sq.ft. space in Olympic Place 2. Smaller suites are 972 sq.ft. & 1475 sq.ft. All contain private offices. Great parking, elevator & competitive rents. Joe Michelsen 360-692-6102/360-509-4009. Mile Hill MLS281455 $599,000 3,840 sq.ft. 1997 office bldg- excellent condition, in a private setting on .79ac. Reception area, 8 private offices, conference rm, 2 meeting areas & kit. ADA access. Lrg detached 3 car garage has storage/shop. Mark Danielsen 360-692-6102/360-509-1299. Bainbridge Island CBA478028 Class A Ground Floor Office Space in Winslow Core - San Juan Bldg. Efficient ground floor office space w/views to the Sound. Open floor plan, built in large-format filing cabinets and shelving. Generous shared amenities and underground parking garage. Building is directly adjacent to ferry terminal and provides easy access to Historic Winslow. $16/sq. ft. Kelly Muldrow 206-780-1500.
May 2012 Kitsap Peninsula Business Journal • KPBJ.com 39
PROPERTY FOR SALE OR LEASE BREMERTON CBA468464 $275,000 9000 Sq Ft building in the Bremerton Charleston area. Available for lease at .30 per foot, loading ramp, good parking and centrally located. Victor Targett, CCIM for details 360-731-5550.