October 2012 Vol. 25 No. 10
The Voice of Kitsap Business since 1988 The Food Shed is all about local, pg 3
Cancer survivor helps others through art therapy
Gary Shapiro to speak at annual event, pg 16
Inside Special Reports: Building Wealth, pp 8-13 Healthcare Quarterly, pp 26-33 Human Resources, pg 14 Technology, pg 16 Real Estate, pp 23-25 Automotive, pp 34, 35 Editorial, pp 36-38 Home Builders Newsletter, pp 19-22 Photo by Rodika Tollefson
Artist Jane Seitz, who was given 18 months to live five years ago when she was diagnosed with pancreatic cancer, has made it her passion to show others how to find distractions from the disease. (See related story in Healthcare Quarterly, page 32) By Rodika Tollefson “It was terribly exciting,” she says. When Jane Seitz was selected by a Texas While preparing for the trip, however, company five years ago as one of two Seitz received a call from her doctor: She American artists to be featured at a gallery was to drop everything and come in in China as part of the Beijing Olympics, immediately. Seitz was diagnosed with the opportunity was a huge boost, not to pancreatic cancer, and needed emergency mention groundbreaking — she would surgery. have been the first American female artist whose work would have been sold in a Cover Story, page 4 gallery in China.
Dentists offer care plans that don’t require insurance
By Tim Kelly, Editor Dentists like Dr. Tim Verharen and Dr. Jeromy Peterson stress preventive care; and in their view, misconceptions about dental insurance often prevent people from getting the care they need. So they offer an affordable dental care alternative that doesn't require insurance, and gives their patients a better deal. "Why do we have dental insurance is really a good question," said Verharen, who runs Current Dental in Bremerton. "It just doesn’t ever seem to work out well for anyone." The approach that's working out better for many patients at his clinic is called Dental Health Rewards. It uses the same payment model as the Quality Dental Plan that Peterson introduced two years at his clinic, Modern Dentistry in Poulsbo. A second area dentist, Dr. Kim Rioux, recently began offering QDP at her practice in Gig Harbor. Cover Story, page 9
Library Foundation hires new executive director Jaime Forsyth of Bremerton has been named the new Executive Director of the Kitsap Regional Library Foundation. The foundation raises money to support the facilities, programs and services of Jaime Forsyth Kitsap Regional Library, a system with nine branches.
Forsyth brings a strong community connection and a wide-ranging resume to the KRL Foundation. She was most recently vice president of strategy and marketing for Profile Composites, a firm focused on advanced composites technology and developing that industry in Kitsap County. She also is the founder of Bremerton Green Drinks, a business and social networking organization focused on creating a thriving community through the support of local businesses and sustainable practices.
The KRL Foundation is a partner in the fundraising that is taking place to support creation of a new community center at the Kingston Village Green. It is also likely that the Foundation will play a role in a capital campaign for a new library in Silverdale if the KRL Board of Trustees decides to support such a move. A study into the feasibility of fundraising for a new library in Silverdale was scheduled to be delivered to the KRL Board in late September. The KRL Foundation raised more than $160,000 in 2011.
She replaces Peter Raffa, who left the KRL Foundation to lead the development office for the King County Boys and Girls Club.
New agent joins Windermere in Poulsbo Windermere Real Estate in Poulsbo has added a new agent, Sheenah Hellmers. Hellmers has experience in the building industry, working alongside her craftsman husband to repair and remodel homes. Additionally, Hellmers holds degrees in both biology and paralegal studies. Sheenah A native of Hawaii, Hellmers Hellmers feels lucky to have “landed” in the Northwest and enjoys her family’s small farm complete with goats, alpacas and guinea pigs. She can be reached at 360-779-5205 or sheenah@windermere.com.
2 • Kitsap Peninsula Business Journal • KPBJ.com October 2012
Start-up business offers all-natural cleaning service Spot On Cleaning is local business owned and operated by Maxine Kelley, serving the Hansville, Kingston, Indianola and Poulsbo areas. The business specializes in all-natural, chemical-free residential and commercial cleaning. Kelley is a graduate of the Washington Community Alliance for Self-Help (C.A.S.H.) program, which provides business development classes for entrepreneurs. Spot On Cleaning can be contacted at 360-297-3153 or socleaning@yahoo.com, and Kelley plans to expand her business to offer service soon in the Silverdale, Bremerton, and Port Orchard areas.
Financial services firm announces new hire Parker Financial LLC in Silverdale has hired Rebecca Royer as their new Director of First Impressions and assistant administrator. Royer moved to Kitsaps from Onalaska, Wash., where she worked for more than 10 years as a customer service representative with Ontos, Inc. Rebecca Royer She recently moved to Bremerton after getting married a few weeks ago.
Food Shed wants to become local foods hub in N. Kitsap and selling them at the farmers market and through CSA (Community Supported Agriculture) shares. “We decided we needed to bootstrap and launched our line of baked goods and artisan products to see if there was a market for that kind of product in Kitsap,” she said. The baked goods include locally sourced ingredients as well as unique flavor combinations. “The response was overwhelming. People wanted everything we had,” said Pam Buitenveld, another owner who also owns Maggie’s Farm nearby. Earlier this year, they took a plunge into leasing the property that was formerly home to Kingston Farm. The move gave them a home base as well as the ability for one more step, the beginnings of their hope to become a community hub. The former farmhouse was remodeled to include a small commercial kitchen, a room that can host small events, and a few other public spaces. Once the kitchen was certified this Rodika Tollefson photo summer, Friday Café was Business partners Leslie Pate, right, and Pam Buitenveld have launched — a lunchtime numerous ideas for their venture and are still trying to wrap their cafe with a few menu arms around their final concept. options, along with pastries and other goodies. Pate, one of three owners, said the vision The weekly event has been building a steady has been evolving — and still is — as the following. partners take small steps to implement their Another regular offering is “farm to fork” plans. They started out by baking pastries dinners, hosted both at The Food Shed and
By Rodika Tollefson Leslee Pate is a third-generation farmer who has been farming in North Kitsap for about 10 years. With a background in natural foods wholesale and retail as well as marketing, Pate said saw a disconnect between local producers and consumers. What started as an idea of a co-op to help bridge the gap grew into The Food Shed, a nascent Kingston business that combines farming, producing foods and connecting people with those foods, both through retail sales and café-type lunches or dinners, as well as education.
New restaurants in area
money. It’s not just about pastries,” Pate said. The business is at the end of its first year in what Pate and Buitenveld see as a 36month evolution process. There’s still much to be done, and one immediate goal is to get a five-year lease for the farm; their hope is to eventually purchase the five-acre setting. Part of the property is already being used to raise animals — including pigs, goats and chickens — and the plan is to farm some of the land for indigenous crops and other produce. If they secure the lease or option to buy, they plan to remodel the barn, which is being vacated by a feed store, into an events space. Food Shed, page 7
KEDA salutes Olympic College Recipient of a
$2 Million Air Washington Grant KEDA and the Kitsap Aerospace and Defense Alliance (KADA) recognize Olympic College as a key partner in their mission to expand and attract aerospace and defense industry in Kitsap County. “This is a pivotal point for the competitiveness of America’s aerospace industry. Washington needs more that 21,000 new aerospace workers over the next decade to fill new jobs and meet employer demands. And America needs thousands more skilled workers to seize aerospace job opportunities on the horizon. We need to make the right decisions today to create aerospace jobs now — and for our children.” a
Senator Maria Cantwell, Chair of the Senate Aviation Subcommittee
For more information visit www.olympic.edu and www.airwashington.org KADA – A Strategic Aerospace Partnership advancing opportunities for Kitsap County Go to www.kitsapaerospace.com for details or contact KEDA’s Director of Business Development, Kathy Cocus at cocus@kitsapeda.org or 360-377-0180
www.kitsapeda.org • 360-377-9499
October 2012 Kitsap Peninsula Business Journal • KPBJ.com 3
Several new restaurants have opened on the Kitsap Peninsula in the past year. Here are some that opened recently in each part of the region: Bainbridge: Restaurant Marche The brainchild of renowned local chef Greg Atkinson, the restaurant has garnered quite a bit of media attention on the Seattle side since opening in spring. According to its website, the menu is focused on “Cuisine du Marché, a style of cooking that relies on fresh, local ingredients from the market to inform the daily menu.” The Pacific Northwest–style bistro is located next to the farmers market. Poulsbo: 305 Diner Located across form Poulsbo Inn, the diner is open for breakfast and lunch. Owner Steve Koen is a recent transplant to the area from Salt Lake City, attracted to Poulsbo when he saw the possibility of opening a restaurant. Koen has been in the industry for 35 years. The menu is general fare such as pancakes, omelets and burgers. Bremerton: El Balcon Previously a small food stand in
downtown Bremerton, El Balcon now has its own space on Pacific Avenue. In addition to the old menu, new items have been added. The cuisine is Mexican and Salvadoran, paying tribute to the roots of its owners, respectively, Ofelia and Mario Amaya. Mario said the cozy location allows him to stay open later and the timing was good when the spot opened for rent. Port Orchard: Doc’s Bistro Located inside the Harrison Medical Center building, the bistro just opened in September and is owned by Carl and Mescha Manietta. In addition to espresso, gourmet chai and milkshakes, the menu includes breakfast and lunch from fresh ingredients. Lunch boxes, catering, limited delivery and other services are also offered. The couple have owned and operated Double Shot Docs inside The Doctors Clinic Salmon Medical Building since 2007. Gig Harbor: Blue Agave Café The Mexican grill and tequila bar is located in Uptown Gig Harbor. The menu includes build-your-own burritos along with various Mexican dishes. The bar is cordoned off so the restaurant is family-friendly.
at private homes, for small groups. The dinners utilize foods from the farm as well as other local producers. They’re partnering up with local wineries for wine pairings and with other food providers. “We’ve roped in other businesses,” said Pate, who co-founded the Poulsbo Farmers Market. “It’s about inclusivity, not just all us.” The long-term vision includes being an educational hub for slow-food, farming and producing classes. Already, classes are being offered to the community at the Shed, including hands-on live-animal processing. “We’re still in the development stages and trying to diversify how we make our
THERAPY
from page 1 Although the odds were stacked against her — pancreatic cancer is terminal and less than one-fifth of people survive the procedure she underwent — today Seitz not only is in remission and back to her life as a full-time artist, she shares her talents and experiences with others. “I’m very fortunate and I’m passionate about helping people find the magic,” she says. “The magic is a distraction, whatever you ha ve that is a passion for you. I’m excited to help people find their own. The goal is to forget about cancer and find something you can do.” To get people started on this path of discovering their personal distraction, Seitz leads art therapy sessions the first
Tuesday of each month at the Jane Thompson Russell Cancer Care Center, adjacent to St. Anthony Hospital in Gig Harbor. The program is free to participants and funded by an endowment through the Gary E. Milgard Family Foundation. Although many of those who come for the two-hour class are cancer survivors, the program is open to anyone looking for a way to cope with a medical lifechallenge. Every session includes a project that students can finish on the spot, whether it’s painting or mixed-media coll age. The word student, of course, is loosely used — the focus is not on technique so actual instruction is minimal. Seitz supplies everything needed down to the prepared canvas, and she has just one requirement: The artists must sign their pieces before leaving the classroom.
Seitz’s career as an artist started as a fluke. A friend entered her artwork (without telling Seitz) in a juried show in California. To Seitz’s surpr ise, 39 of the 40 pieces sold. After 20 years in the magazine publishing industry, including as editor for Health and Fitness magazine, Seitz decided on a new path 15 years ago. Her signature work includes large floral interpretations, Georgia O’Keeffestyle, as well as the Guinns, whimsical penguins sold in limited-edition paintings that grace private collections of celebrities and political leaders, amon g other fans. A Fox Island resident of nine years, Seitz was asked to start the art therapy program after doing a presentation at a Pierce County survivor conference. “One request was to have a project that can be completed each session so there’s something unique and different every month,” she says. “No talent required. Every single time they tell me they can’t do it and they do it.” She says the classes are not about giving lessons but giving experiences. The intimate atmosphere also fosters conversations and moral support. “It’s amazing, the response we get from the patients. They love it and the creativity they’re finding,” says Jamie Dobosz, co-manager of the Community Cancer Program for Franciscan Health System.
Comfort therapies Art therapy is part of a comfort therapy program at St. Anthony. Also known as complementary therapy, this is a growing trend in the health care industry. Services that are offered for free in Gig Harbor are funded through the Milgard foundation endowment, including a complementary session each in massage therapy and skin care therapy for new cancer patients — who are free to pass the gift cards to their caregivers or loved ones instead. Skin care therapy includes things like oncology facials and hand/foot/scalp treatments that are designed to strengthen and rejuvenate the skin, which can be impacted by cancer medications. Sally Jo Wyatt, an oncology-certified and licensed clinical massage therapist, is available seven days a week. She says the old convention that cancer patients shouldn’t have massage therapy has been disproven by new science a few years ago. The only exception is for those undergoing chemotherapy since massage is intended to detoxify the body. “The main complaints (of cancer patients) are pain, fatigue, depression, stress, nausea and vomiting, and massage helps improve those symptoms,” she says. “It’s good for the mind and body.”
Save the Date!!
4 • Kitsap Peninsula Business Journal • KPBJ.com October 2012
ARC Awareness 2012 Dinner and Auction “A Night of Stars”
October 26, 2012 Silverdale Beach Hotel Come celebrate a night of fun at the Live and Silent Auction benefiting The Arc of Kitsap and Jefferson Counties Contact Jennifer Cain 360-377-3473 ext.7 or jennifer@arckj.org for information about the event or to donate an item.
Engaging and supporting people living with intellectual and developmental disabilities, and their families and friends.
Coming Next Issue...
Communications & Technology
Energy Savings For Your Business
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DENTISTS
Bremerton-based Peninsula Community Health Services or through another program Verharen developed called Service With a Smile, which arranges for people to perform community service in lieu of payment. Peterson also treats some patients in that program. The two dentists said their clinics lose some revenue by offering their plans for uninsured patients, but that is mostly offset by less administrative costs and hassles dealing with insurance companies. "In the long term," Verharen said, "we're hoping to get healthier patients, and people who are more loyal to our practice; and patients who need fewer procedures as a result of following the program."
"I really believe this is the right thing for us to do for our patients," Peterson said. He said about half his patients don't have dental insurance, and the majority of them have enrolled in Quality Dental Plan. At Verharen's clinic, 169 patients signed up for the Dental Health Rewards program, and he said almost all of them have renewed their enrollment. Peterson said he's surprised that not many businesses have offered QDP enrollment for their employees. "It would be a lot more cost-effective for employers, especially for those who want to provide some benefits for their employees," he said.
October 2012 Kitsap Peninsula Business Journal • KPBJ.com 5
from page 1 The dentists believe their plans are helping to change a mindset that often keeps people from getting regular dental care. "People believe they can't come (to the dentist) if they don’t have insurance," Peterson said. Both plans charge an annual enrollment fee that Dr. Jeromy Petersen covers the cost of initial exams, x-rays, two cleanings and fluoride treatment. Patients who need procedures such as fillings, crowns, etc., get a 15 to 20 percent discount from the clinic's fees for those services. At Current Dental, the annual fee is $370 for an adult; a second adult family member can be added for $290, and it's $230 to enroll a child in Dental Health Rewards. Patients are asked to pay the entire fee at enrollment, but they can arrange to make monthly payments, Verharen said. His patients are not asked to brush and floss their teeth daily — they are required to, and Verharen said that accountability element is what makes his program different from the Quality Dental Plan, which is being adopted at clinics throughout the U.S. "We're trying to reward good dental health," he said. "In our program you need to be brushing and flossing once a day, … and we know when you're not. "What we're really doing is asking people to be accountable for their own health." Like any dentist, Verharen notes that about half of all adults don't floss, and that if they did floss regulary it could prevent a lot of problems with their teeth and gums. "We think by offering this program we're not only offering people a good deal, it's also going to make them healthier by them promising to do what they need to do for themselves," he said. Financially, the annual fee both programs charge is considerably less than the cost of premiums for traditional dental insurance plans. "It's easier for people to understand what their costs are going to be," Peterson said. "It pays for all their basic dental maintenance that year, and it gives them good-size discounts on any other treatments they need." Insurance plans also have deductibles that must be met and typically have a maximum of about $1,200 in annual benefits paid. But for uninsured patients in these alternative plans, there is no coverage cap; they get their discount on all treatments and procedures they need. Also, both the Quality Dental Plan and Dental Health Rewards eliminate the practice of charging higher rates for uninsured patients. "It allows us to extend the same fees to people who have insurance or don’t have
insurance, and I think that's fair," Peterson said. He also points out that insurance plans sometimes don't cover new, state-of-theart treatments that dentists think are best for their patients. "With QDP there are no restrictions at all," he said. While the plan can make dental care more affordable for patients who can't afford insurance, Peterson noted they are required to pay the full cost at the time of service. While the programs help make dental care affordable for the uninsured, they do not provide indigent care. That's available for low-income patients either through
6 • Kitsap Peninsula Business Journal • KPBJ.com October 2012
n For more information about The Food Shed, search for it on Facebook. n To take a sneak peek at the farm, go to kpbj.com for our video.
The Food Shed in Kingston has been a popular stop this summer for the weekly Friday Café.
they’re still in the early stages. After the Kingston farmers market season ends, The Food Shed will move to the Poulsbo farmers market as well as be open for its café for another day or two on the weekends. With the kitchen flow and other things under control, they’ll be ready to move on to some of the bigger projects as long as they secure the lease. They said The Food Shed location was opened a bit early in the process to get a
Rodika Tollefson photo
little income flowing because the business is being bootstrapped while they’re paying expenses like rent. But even as fast as they’ve been moving, supporters are encouraging them to go even faster. “What we’re proposing is getting a lot of attention and the momentum is moving quickly and pushing us faster than we can develop some things,” Buitenveld said. Still, their goal is to keep a steady pace so they don’t grow too fast. “A lot of people are looking at our business model and are curious about what we’re doing,” Pate said. “We’ve been growing sustainably and incrementally…. We love seeing the community trying to push us further faster than we can go.”
FOOD SHED
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October 2012 Kitsap Peninsula Business Journal • KPBJ.com 7
from page 3 Other goals include opening a yearround farm stand where other producers can sell products as well, and adding a bar with a beer tap in the main building. The idea of a B&B was considered but that space will likely be used for an intern instead. The kitchen is available for rent to other producers, as is the rest of the space for small events, even though The Food Shed’s purpose is not to be an events venue. “A lot of this is in development while we’re building our plan and our value proposition. We like to think of ourselves as incubators,” Pate said. One new business has already grown out of the incubation side. Ilgvar “Iggy” Daga, who became a silent partner recently, has been using the remodeled root cellar on the property to ferment vegetables and fruits. Daga is waiting to get labels finalized for his Iggy’s Foods products and then plans to sell them to the public. He’s also the soup master for the Friday Café. “I believe in the vision of The Food Shed as a future model for a community and a sustainable economy,” he said. “It’s bringing the future into the present. People love the community feel and I think it’s an expression of the yearning people have for this level of community.” While sharing their long-term vision for creating a new community model, the business partners have attracted both attention and support from other groups. They’re hoping to work with the Bainbridge Graduate Institute to create an educational component, and have been asked by various groups for partnerships. One of the decisions they’re considering is to turn their general partnership structure into a social purpose corporation (SPC). It’s a new model established by the state Legislature during the last session. The SPC model allows companies to pursue a social mission while maximizing shareholder value, and requires the establishing of a general public benefit whose purpose is to have a societal impact. Several other states have adopted this model in addition to Washington. “We hope to be one of the first in the state to do that,” Pate said, adding that the main advantage for them of an SPC over a nonprofit, which they have also considered, is the control over the business model while
Creating true wealth: Not just money, but discretionary time
8 • Kitsap Peninsula Business Journal • KPBJ.com October 2012
By Dan Weedin Wealth creation. Wealth management. Wealth strategies. These buzzwords have been popular over the years to entice people to start saving, investing, and managing money for retirement. While all noble objectives, perhaps we need to do a little better job of defining wealth. On the surface, wealth means money. If you are creating wealth, you are making money, right? If you are managing wealth, you are making that money work for you to make more money. I don’t believe the definition of true wealth is money. I think it’s something more visionary, yet very important to one’s motivation to creating wealth. Here is my definition of true wealth… True wealth is discretionary time. Money is simply the vehicle to get you there. My professional mentor, Alan Weiss, gave this definition to me several years ago.
It has resonated with me since. You might say, “Yeah, Dan. I get it. But it still involves making money so I can retire when I want and then do what I want.” Maybe. Allow me to spend the rest of this column waxing poetic on retirement, money, and “wealth.” Don’t ever “retire” “Retirement” is bad for your health. Shell Oil did a study in 2005 that shows that people who retire at 55 are 89 percent more likely to die in the 10 years after retirement than those who retire at 65. I suggest that even though you may ditch the job or career you had for 30 years, if you don’t supplement that with some level of “work” that you have a passion and purpose for, you are more likely to get sick, depressed, and maybe even die. My family and I went to see Bill Cosby a few years back at Benaroya Hall in Seattle. At the time, Mr. Cosby was 69 years old. The guy put on a 2½-hour masterpiece of comedy, without one break. It was just him, a chair, a glass of water, and us. He looked like he could have gone on for another two hours. He doesn’t need the money anymore. He needs the fulfillment. He needs the purpose.
He needs the fun. Even though he is getting paid handsomely, it’s his discretionary time. (Note: In my mind there is NOTHING wrong with making money in your discretionary time) In my own life, I don’ t ever plan on “retiring.” The work I do is fun and purposeful for me. That being said, I will always continue to change. We need change to stay current, vibrant and interested. My goal is not to retire, but to rather accumulate enough financial wealth to allow me to work when I want, and for how long I want. Believe me, I am no workaholic. Just ask my wife. But I do need the excitement of the work I do to keep me happy. I don’t think that we as humans are all that different. My guess is you require passion, reward and satisfaction, too. Defining Your Discretionary Time When we were kids, we were always asked, “What do you want to do when you grow up?” In my parents’ generation, you found that career, stayed with it for over 30 years, and retired. My generation has seen people switch jobs and careers multiple times. Research indicates that my kids’ generation will change even more. The question that I asked is actually more relevant to us as in the 40-60 year old age group. What do you want to do with the rest of your life? Here are a few thoughts to consider… • What makes you so passionate that you want to make it your discretionary time? Is it traveling, playing with your grandchildren, golfing every day, gardening, philanthropic work, or even “working” a career? You need to strategize your future like you strategize your business’s future. Without having an idea what you want to do makes it very difficult to
know how much money will make that work. • If you love what you do, consider doing it forever, just with more time off. If it makes you happy and fulfilled, why not? That means you need to start figuring out how the business will run without you. Heck, maybe it will even be run better! Do you have a perpetuation plan in place? Have you communicated it to your employees? • If you plan on beginning a new “career,” what does it look like? Sitting on the beach or playing golf all day sounds great, but may become boring. There is nothing wrong with building a business from your experience and “smarts.” Consulting, speaking and writing all provide a great avenue for a new career, and can also provide ongoing income. Bottom line — Creating financial wealth is simply about putting you in a position to have discretionary time. How you use that discretionary time should be addressed while you are investing and making money. In order to know how much you need, you need to determine what you want to do with your time. This is the time you should be asking, “What do I want to do when I grow up?” Make sure you are in a financial position to do whatever you want with your own discretionary time. • Dan Weedin is a Poulsbo-based management consultant, speaker, and mentor. He leads an executive peer-to-peer group in Kitsap County where he helps exe cutives improve personally, professionally, and organizationally by enhancing leadership skills. He is one of only 35 consultants in the world to be accredited as an Alan Weiss Master Mentor. You can reach Dan at 360-697-1058; e-mail at dan@danweedin.com or visit his web site at www.DanWeedin.com.
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Social Security timing
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I have seen instances where the wrong decision on when to claim your Social Security benefits could be the determining factor between having enough saved for retirement or running out of money in retirement. Before you create an investment strategy for retirement make sure you've taken all the steps necessary to build it around a solid financial plan. A part of a good financial plan should include strategies for showing you how to get the very most out of your Social Security benefits. Remember, retirement really is all
about your cash flow not net worth. Be sure to work with an advisor who specializes in retirement. You may also want to visit the website www.SocialSecurityTiming.com and use their interactive calculator to get some ideas on how to maximize your Social Security benefits. (Editor’s Note: Article written 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 holds his series 65 securities license. He offers annuities, life & long term care insurances as well as investment services. Follow Jason’s blog at www.thriving-inretirement.com.)
October 2012 Kitsap Peninsula Business Journal • KPBJ.com 9
By Jason R. Parker As you construct a plan to generate a lifetime of inflation-adjusted income, one of the items you should pay close attention to is how and when to begin taking your Social Security benefits. Maximizing your Social Security benefits is an important part of an overall income plan for retirement for several reasons. First, Social Security benefits are tax-advantaged because in a worst case scenario, only 85 percent of the income you receive from Social Security is taxable. Second, Social Security income is adjusted for inflation so over the years your income will increase to keep up with it. And third, Social Security provides survivor benefits when one spouse passes, allowing the surviving spouse to continue to receive income guaranteed for life. Most people know if you begin taking Social Security at 62, then you take a permanent reduction in your benefits (30 percent reduction for people born after 1959). For most baby boomers, if you wait until age 66, then you can receive your full retirement benefit. For every year you delay taking your Social Security benefits beyond your full retirement age up to age 70, your Social Security payments increase by 8 percent per year. It's hard in today's interest-rate environment to find a way to increase your cash flow by 8 percent per year on a guaranteed, tax-advantaged, inflation-adjusted basis. While those are some of the most common strategies for maximizing your Social Security benefits, some of the lesserknown planning strategies include techniques called "switch strategies." We refer to these planning options as switch strategies because they often involve the election of a limited benefit initially, then a switch to a larger benefit later. A major university study suggested that these strategies represent over $10 billion in unclaimed Social Security benefits. For an individual family, it's not uncommon for them to receive an additional $20-$50,000 or more in benefits during their lifetime. You can use two basic techniques that enable switch strategies: the restricted application, and the file and suspend. When you go to the Social Security office, the individual you meet with may only be trained to help you identify the highest benefit you can get today, not necessarily over your lifetime, or over the joint lives of you and your spouse. As a result, you are unlikely to hear about these techniques during a typical visit.
Medicare: A game-changer
10 • Kitsap Peninsula Business Journal • KPBJ.com October 2012
By Donald Creech Social Security is the “third rail” of American politics warning any politician brave (or stupid) enough to touch it they will be ousted from office. The same could certainly be said of Social Security’s sister program, Medicare. With Boomers in or nearing retirement, taxpayers are rightly concerned about rising health costs. Many are questioning whether Medicare will be available when they need it, though no proposal affects anyone over age 55. Regardless of the political consequences, Medicare has become a major issue in this year’s presidential campaign with the selection of Paul Ryan as the vice president candidate on the GOP ticket. Ryan’s proposals for Medicare are interesting, if for no other reason because they have started a long overdue debate. The future of a program that tens of millions of Americans will depend upon in the decades ahead needs an abnormal amount of clarity from Congress. We often consider healthcare to be “special” in as much as our lives depend on it. The basic economics of healthcare are really no different than cars, houses or sushi dinners. We can have virtually unlimited healthcare for all only if we are willing as a country to pay astronomical prices for it. On the flip side, we can have affordable healthcare for all too, but only if we restrict access to it. There is a tradeoff. We can have unlimited care, or we can have affordable prices. But we can’t have both.
We must make choices that are never easy when lives are at stake. As a country, America has gone a different direction than the UK or Canada. We have opted to make more care available, but we also pay far more than any other country in the world as a result. The UK and Canada offer taxpayer-funded health care. As a percentage of the economy, it is less expensive, but it only comes with restricted access to treatments. You do not have to search far to find horror stories of waiting lists for critical operations. Which is better? It depends on your opinion. As a country, Americans seemingly favor freedom of choice over economic expediency. Ryan’s plan for Medicare reform is to take the U.S. government out of the role of payer. Currently, Medicare is forcing providers to accept lower payments for services. Under the Ryan plan, the government would essentially give seniors vouchers to shop for their own insurance in the market, restoring competition. Is this the right answer? Maybe, or maybe not. “Choice” is appealing to Americans, but the prospect of very elderly Americans struggling to fill out forms and navigate the complicated process of choosing an insurer is not particularly appealing. However, many seniors opt for Medicare plan C which is sponsored by private medical groups such as Group Health, Kaiser Permanente, Blue Cross and others. As a country, our perceptions for health insurance have changed over time from insuring against large losses to reimbursement for any expense. In prior decades, health insurance was competitively structured as
home and auto insurance remain today. You pick your coverage and limits according to your needs. When states began mandating coverage for every procedure and every provider, competition among carriers was negated. A company no longer had a reason to compete for certain risks. The net result was shrinkage of carriers and consumer choices. The Institute of Medicine has drawn some interesting comparisons and cost analysis: • If banking were like health care, ATM transactions would take not seconds, but perhaps days or longer as a result of unavailable or misplaced records. • If home building were like health care, carpenters, electricians and plumbers each would work with different blueprints, with very little coordination. • If shopping were like health care, product prices would not be posted, and the price charged would vary widely within the same store, depending on the source of payment. Although these estimates have known overlap, the sum of the individual estimates— $765 billion—suggests significant waste in the system. Health care waste exceeds the 2009 budget for the Department of Defense by more than $100 billion. It amounts to more than 1.5 times the nation's total infrastructure investment in 2004, including roads, railroads, aviation, drinking water, telecommunications and other structures. If the estimated funds were redirected, they could provide health insurance coverage for more than 150 million workers and pay the salaries of all of the nation's first-response personnel, including firefighters, police officers and emergency medical technicians, for more than 12 years.
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There is still no escaping the basic economics of healthcare. We still have to pay for it, whether it is collectively via Medicare taxes or whether it is individually via personal insurance plans. The per-person Medicare monthly premium has been $96.40. Under the Affordable Care Act, premiums increase in steps to $104.20, $120.20 and $247 in 2014. Even so, the increases in Medicare taxes will still be insufficient to cover benefit expenses. Then the general fund will be tapped, but it is already tapped out as evident from our annual deficits. As individual investors, this means planning and budgeting. Political uncertainties will persist until a brave politician sets a new course to resolve the dilemma. The best course of action for an individual is to focus on growing and preserving wealth and be prepared to pay for health care, come what may. That is easier said than done. The average 55-year-old has less than $100,000 set aside to supplement retirement income. Numerous sources now estimate that out-of-pocket health care expenses will require a reserve upon retirement of $250,000 that is separate from resources for normal living expenses. Freedom to choose for ourselves is ingrained in our American heritage. The choice remains to prepare now or regret later. Whatever Congress finally does, resolving the Medicare dilemma will be a game-changer. Comments to Don@DonCreech.com. (Editor’s Note: Donald Creech, CFP, AIF, is founder and president of Investor Resources, Inc. He may be reached at 360-895-9119. For more information, go to www.WisdomInCrowds.com or www.InvestorResourcesInc.com.)
Travel author will speak at KARE conference The Kitsap Alliance of Resources for Elders is proud to announce that Rick Steves, renowned travel author, will be the speaker at the annual KARE conference in October. “We’re very excited to have Rick Steves come speak to our community. We have many people who really enjoy traveling abroad especially in retirement, and Rick will be giving us tips about seeing Europe through the back door,” said Jason Parker, president of KARE and Parker Financial LLC. The 2012 KARE conference will be Oct. 9 from 9:30 a.m. to noon at the Kitsap Conference Center at Harborside in Bremerton. For more information and tickets, visit www.kare-wa.com. The conference is still looking for sponsors; interested companies or individuals should contact Carl Johnson at 360-394-KARE or info@kare-wa.org.
Should you start your own new business in retirement? business of yours realistically make — and how soon? In eight weeks you write your own business feasibility study. There's homework to do and you should be enjoying this effort taking over your life. Walton says it takes 10,000 hours to get it all together and your business making money. If your feasibility study makes dollars and sense, then it's time for a business, sales and operations plan, done in the free peer groups that meet twice a month in Bremerton. Fifty or more business owners — graduates of the CASH program — meet to help each other in
the Business Support Group. They pay their own rent and are peer-based with volunteer mentors. It's an electric environment and you are invited to attend to see today's business startups learning from each other. Immediately following our business boot camps we have an orientation to the program that begins by asking these would-be entrepreneurs to stand and introduce themselves and tell the group about their proposed business. Except we add a wrinkle: we ask not just for their business idea, but to tell us what is going to
make their business better, cheaper, more expensive, a better value ... in short, what is going to differentiate their product or service in the marketplace? Bluntly, we don't need another local bead business unless it has a clear value added — a category-breaking new approach. "Your new business must have a point of difference so big that it screams out to potential customers," Hoke says at the boot camps. "We can help you refine your idea but it needs to be built on an honest point of difference — a benefit." Retirement, page 13
October 2012 Kitsap Peninsula Business Journal • KPBJ.com 11
By Bill Hoke and Stuart Walton If you are facing retirement, or thinking how you will spend your time when you do retire, starting your own business may be on your mind. It's a big decision and a complicated one. We have worked with nearly 1,000 new business start-ups and expansions in Kitsap in the past 10 years — through the Washington Community Bill Hoke Alliance for Self-Help (CASH) program, and in our private consulting businesses. One thousand times we have heard someone say, "I have a dream to open a…" and we have watched and worked with them in the Stuart Walton CASH 8-week Business Development Training Class and worked with hundreds of graduates in the CASH Business Support Groups as they bring their ideas to life and profit. We've seem dreams go from zero to huge success and we've seen good ideas that never could get traction. Young and old, poorly financed and richly endowed, we have seen nearly every imaginable new business idea launched by people with impressive academic credentials and those without. If there was a straight line and any absolute predictors of success, we could guarantee a perfect start-up every single time. We have MBAs with failures and those with barely a GED get a business going. We see pedestrian ideas like a housecleaning business take off and seemingly unique high-tech niche ideas fail to materialize. For whatever age and circumstance, we offer a free business boot camp where we ask questions hardly anyone else wants to ask: Are you ready for three years of really hard work? Is this the best time? Do you have 100 percent support at home? How much money do you need to take home from this new business? You will need to charge at least $30 an hour to pay expenses and have a profit. What are your costs of goods sold; how many consulting hours can you sell? What about insurance, taxes, cash flow and hiring employees? This is a life-altering moment: Go ahead, with an open, curious mind willing to do the hard work to find out if this dream of yours can make money — that's what we do in our business development training classes. Or, as we both see too frequently, people ignore all the rules, make no plan, assume they can run a restaurant or a retail store or sell a service, and have no background at all. Retirements are lost just for the time and effort to take the next step, even before a business plan. A lifetime working in someone else's business is no guarantee you can run a business of your own. Entrepreneurial training and peer support are essential. We call this step a business feasibility study. It begins with preparing your own personal financial statement, and during the course of the training you will come to the all-important break-even point: How much money can this
401(k) loans: The last resort? By Schelley Dyess As you’re well aware, we’re living in difficult economic times. Consequently, you may be forced to make some financial moves you wouldn’t normally undertake. One such move you might be considering is taking out a loan from your 401(k) plan – but is this a good idea? Of course, if you really need the money, and you have no alternatives, you may need to consider a 401(k) loan. Some employers allow 401(k) loans only in cases of financial hardship, although the definition of “hardship” can be flexible. But many employers allow these loans for just about any purpose. To learn the borrowing requirements for your particular plan, you’ll need to contact your plan administrator. Generally, you can borrow up to $50,000, or one-half of your vested plan benefits, whichever is less. You’ve got up to five years to repay your loan, although the repayment period can be longer if you use the funds to buy a primary residence. And
12 • Kitsap Peninsula Business Journal • KPBJ.com October 2012
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you pay yourself back with interest. However, even though it’s easy to access your 401(k) through a loan, there are some valid reasons for avoiding this move, if at all possible. Here are a few to consider: You might reduce your retirement savings. A 401(k) is designed to be a retirement savings vehicle. Your earnings potentially grow on a tax-deferred basis, so your money can accumulate faster than if it were placed in an investment on which you paid taxes every year. But if you take out a 401(k) loan, you’re removing valuable resources from your account – and even though you’re paying yourself back, you can never regain the time when your money could have been growing. You might reduce your contributions. Once you start making loan payments, you might feel enough of a financial pinch that you feel forced to reduce the amount you contribute to your 401(k). You may create a taxable situation. Failure to pay back loans according to the specified terms can create a taxable distribution and possibly subject the distribution to a 10 percent penalty. You may have to repay the loan quickly. As long as you continue working
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for the same employer, your repayment terms likely will not change. But if you leave your employment, either voluntarily or not, you’ll probably have to repay the loan in full within 60 days – and if you don’t, the remaining balance will be taxable. Plus, if you’re under age 59½, you’ll also have to pay a 10 percent penalty tax. Considering these drawbacks to taking out a 401(k) loan, you may want to look elsewhere for money when you need it. But the best time to put away this money is well
Invest early – and wisely – for college By Lori Morgan School is back in session. If you have school-age children, you’re probably busy getting them acclimated to another year of hitting the books. But the school years go by quickly, so it won’t be long before your kids are ready to head off to college. Will you be financially prepared to help them? It’s certainly a challenge, especially given rising costs of higher education.
Consider these figures from the College Board: For the 2011-12 school year, the average cost (including tuition, fees, room and board) was $17,131 per year for an instate student attending a public, four-year college or university. For a student attending a private four-year school, the comparable average cost was $38,589 annually. And these numbers are likely to increase in the years ahead. So, what can you do to help meet the high costs of higher education? For starters, you need to save and invest – early and often. And you’ll also want to choose Invest, page 13
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before you need it. Try to build an emergency fund containing at least six to 12 months’ worth of living expenses, and keep the money in a liquid vehicle. With this money, you’re primarily interested in protecting your principal, not in earning a high return. A 401(k) is a great retirement savings vehicle. But a 401(k) loan? Not always a good idea. Do what you can to avoid it. • Schelley Dyess is a financial adviser with Edward Jones in Port Orchard.
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Are you prepared to retire? attention to the financial press, you've probably come across at least a few commentators who speak in gloom-and-doom terms about the future for American retirees, decr ying a lack of savings and warning of the imminent growth of the elderly population. True, there is widespread concern about at least one traditional source of income for retirees — Social Security. Under current conditions, Social Security funds could fall short of needs by 2033.1 This shift makes it even more important for individuals to understand their goals and have a well-thought-out financial plan that focuses on the key source of retirement income: personal savings and investments. Given the potential duration and changing nature of retirement, you may want to seek the assistance of a professional financial planner who can help you assess your needs and develop appropriate investment strategies.
INVEST
penalty.) Unlike a 529 Plan, in addition to college expenses, Coverdell funds can be used for kindergarten through 12th-grade expenses and you can place Coverdell ESA contributions into virtually any investment you choose – stocks, bonds, certificates of deposit, etc. Zero coupon bonds – A zero coupon bond is priced at a discount to its principal or face value. You receive the principal value when the bond matures. So, you could purchase a zero coupon bond that matures in the year your child is ready to go to college. Although you won’t receive regular interest payments throughout the life of the zero coupon bond, you’ll still be liable for the taxes on this interest. So, before purchasing a zero coupon bond, consult with your tax advisor. These investments have proven popular among many parents and grandparents. However, you’ll need to consult with your financial advisor to determine which collegesavings vehicles are appropriate for your needs. But don’t wait too long – because, before you know it, today’s grade-schoolers will be packing for their college dorms. • Lori Morgan is a financial adviser with Edward Jones on Bainbridge Island.
RETIREMENT
a fire in your belly and not an ounce of quit in your heart.” The local CASH business owners operate on two principles: “Yes I can!" and “Quitters don't start businesses.” Retire to a new business? Give yourself time to do some serious household soul-searching, Walton and Hoke advise, and if you do decide to go forward, prepare a feasibility study, a business plan and get independent professional help and listen to the hard truths. "The marketplace is littered with failed business ideas and it's a sad fact most of them never had a plan. The dream is not enough," Walton says. Stuart Walton and Bill Hoke have been active in the Kitsap program of Washington Community Alliance for Self-Help (CASH). At press time, Washington CASH is transitioning to become Kitsap-based and it is hoped the business boot camp and orientation and the business development training classes will be available again soon.
from page 12 investments that are particularly well suited for college. Here are a few suggestions: 529 plan – When you invest in a 529 plan, all withdrawals will be free from federal income taxes, as long as the money is used for a qualified college expense for your child, or even your grandchild. (However, non-qualified withdrawals may be subject to federal, state and penalty taxes.) Contribution limits are quite high so, in all likelihood, you’ll be able to put as much as you want into a 529 plan; although you generally can’t exceed the annual gift tax exclusion, which is $13,000 per beneficiary in 2012. Furthermore, if you participate in your own state’s 529 plan, your contributions may be tax-deductible on your state taxes. Coverdell Education Savings Account – Depending on your income level, you can contribute up to $2,000 annually to a Coverdell Education Savings Account (ESA) in 2012. Your Coverdell earnings and withdrawals will be tax-free, provided you use the money for qualified education expenses. (Any non-education withdrawals from a Coverdell ESA may be subject to a 10 percent from page 11 Walton, who directed the CASH program in Kitsap for seven years, makes his first assessments of business success based on a gut feeling. "In every first class, we have several entrepreneurs who are clearly fearless and their passion just pours out ... you can feel their success, it's visceral. You've got to be out there asking for business if you are going to succeed. It's no place for wallflowers. You must have passion — you're the sales manager," Walton says. While he is looking for passion as a marker for success, Hoke looks for people who love their idea so much they will happily spend hours doing Internet research. “You've got to be driven to find out how to maximize your business success. The information is probably there." Curiosity, Hoke, says, is another marker for success. Walton and Hoke do agree on the idea that it takes “nerves of steel, ice in your veins,
As you move through the various stages of the new retirement, perhaps working at times and resting at others, your plan may require adjustments along the way. A professional advisor can help you monitor your plan and make changes when necessary. Among the factors you'll need to consider: • Time: You can project periods of retirement, re-education, and full employment. Then concentrate on a plan to fund each of the separate periods. The number of years until you retire will influence the types of investments you include in your portfolio. If retirement is a short-term goal, investments that provide liquidity and help preserve your principal may be most suitable. On the other hand, if retirement is many years away, you may be able to include more aggressive investments in your portfolio. • Inflation: While lower-risk fixed-income and money market investments may play an important role in your investment portfolio, if used alone they may leave you susceptible to the erosive effects of inflation. To help your portfolio keep pace with inflation, you may need to maintain some growth-oriented investments. Over the long-term, stocks have provided returns superior to other asset classes.2 But also keep in mind that stocks generally involve greater short-term volatility. • Taxes: Even after you retire, taxes will remain an i mportant factor in your overall financial plan. If you return to work or open a business, for example, your tax bracket could
change. In addition, should you move from one state to another, state or local taxes could affect your bottom line. Tax-advantaged investments, such as annuities and tax-free mutual funds, may be effective tools for meeting your retirement goals. Tax deferral offered by workplace plans — such as 401(k) and 403(b) plans — and IRAs may also help your retirement savings grow. Prepare Today for the Retirement of Tomorrow To ensure that retirement lives up to your expectations, begin establishing your plan as early as possible and consider consulting with a professional. With proper planning, you may be able to make your retirement whatever you want it to be. • Terri Mansell is an LPL Inves tment Consultant at Kitsap Bank’s Silverdale branch and provides financial planning services to North Kitsap, Clallam and Jefferson counties. She can be contacted at 360-895-6420 or visit her website at www.lpl.com/teresa.mansell. • Investment products are not a deposit, not FDIC-insured or approved, not bank-guaranteed, and may lose value. Investments are not insured by any federal government agency. Sourc e/Disclaimer: 1Source: Social Security Administration, Facts & Figures About Social Security, 2012. 2Past performance is no guarantee of future results. ©2012 S&P Capital IQ Financial Communications. All rights reserved.
Gary Lucy / CPA, CFP • Alison Fong • Brian Cox • Don Cox / CPA 360-876-1938 • 1590 Bay Street, Port Orchard • pacificasset.com
October 2012 Kitsap Peninsula Business Journal • KPBJ.com 13
By Terri Mansell Retirement used to conjure up images of lazy days spent in a rocking chair. Today's retirement is very different. You might plan to open a business of your own. Or perhaps you'll return to school for that degree you never had the chance to complete. So what does this redefined retirement mean to you? There is no one answer. In the coming decades, "retirement" will mean something different to each of us. Regardless of your decision, you'll need to design a financial plan suited to your specific vision of the future. Income Is Key A good starting point might be to examine your sources of retirement income. If you pay
Two cases that show critical need for HR involvement
14 • Kitsap Peninsula Business Journal • KPBJ.com October 2012
By Julie Tappero In Cedar Falls, Iowa, the heartland of America, the CEO of a successful brokerage firm, Peregrine Financial Group, has been charged with 31 counts of fraud. Russell Wasendorf Sr. allegedly stole over $200 million from his customers over a 20-year period. In the hallowed halls of Penn State University, football coach Gerry Sandusky abused young men over the course of many years. His conviction on 45 counts has forever impacted his employer’s reputation and their bottom line. What could these two cases, so different on the surface, have in common? In both cases, employees and managers failed to speak up and human resource professionals were unaware or marginalized, crippling their ability to protect their employers. What lessons can we learn for our own businesses? Lesson #1: Human Resources play an integral role in a company’s success. Oftentimes the HR department in a business is viewed as paper pushers, regulators, and sticklers for government regulations. It’s not uncommon for CEOs to sideline them, or not include them as part of the executive team. The Louis Freeh report on the Penn State scandal addresses this very issue. HR was not headed by a vice president, as other departments were. The HR group itself was decentralized amongst
the various university departments, giving HR less clout. Decentralization also caused an overabundance of policies and procedures, with less oversight for compliance. And, as in many organizations, HR was understaffed in comparison to other areas which were deemed more critical to success. Penn State is now learning that prevention is worth a pound of cure, as the saying goes. As of now, the estimated cost to Penn State is almost $17 million. Properly funding the Human Resources Department, treating it as a valued component of university management, trusting HR professionals and relying on their advice, and allowing it to function as a key centralized department might have helped to prevent the tragedy that played out. Lesson #2: Company culture must encourage speaking up about wrongdoing. As we now know, there were employees at Penn State who saw things or knew things. One coach spoke up. But what about all of the others who knew or heard that something was wrong? We have learned that there were janitors that saw things at Penn State, but failed to report it out of concern for their jobs. Retaliation is against the law. Supervisors and employees both need to know this. The reality is that retaliation claims are now the most common complaint investigated by the EEOC. Hopefully this means that more employees know their rights, not that more supervisors are retaliating against employees! Every company needs to have a
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reporting process that is understandable, easily navigated, and provides confidentiality and protection to the employee filing the complaint. Whether an employee is reporting sexual harassment, discrimination, or a manager’s or executive’s illegal activities, it’s paramount that the employee knows they are protected under the law. The ability to remain anonymous can empower employees who are afraid to come forward with information. Usually, it’s the HR folks who provide the safe bridge between employees and management – yet another good reason to keep them in the loop. Lesson #3: Listen to those who have the courage to speak up, no matter who they are. So many times in an organization we know who the whiners and the tattletales are. It’s easy to tune them out, and sometimes tuning them out is the best thing for the organization. But once in awhile, they bring us a gem of truth. Whenever an employee complains, we must listen for the real issue behind the complaint. Is there something illegal going on? Is something happening that violates our company’s policies? Is there merit and truth in the midst of this complaint? Tune out the messenger, but listen for the heart of the message. Lesson #4: Remember that power and prestige do not always translate to principals. In the case of Wassendorf, he was admired for his accomplishments and for his charitable acts. He became above reproach, and even those close to him didn’t question irregularities or suspect that something could be remiss. After all, he started the company! Who would suspect he would steal from it? We know, too, that at Penn State, the football program and its coaches were highly revered. Who could possibly believe that a coach that started a charity benefitting children could misuse his position of power and trust? Lesson #5: Listen to and rely on your gut. At Peregrine Financial Group, Wessendorf personally opened up all of the bank statements, allowing him then to alter them immediately using PhotoShop. He also made sure that statements from auditors came directly to him, and not to his financial department, allowing him to forge signatures to cover his trail. He and
his company had been cited and fined several times in the past by regulators, but he quickly settled the issues. Neither his outside CPA nor his internal accounting department viewed any of these actions with enough suspicion to raise a red flag. Surely, someone’s gut said there was something wrong when bank statements could only be opened by the CEO of a multimillion dollar firm. Basic internal safeguards, required by his accountants, Human Resource department, insurance company, and/or CPA firm, should have prevented this practice. In the case of Peregrine and Wessendorf, the company is now bankrupt and its approximately 200 employees are facing unemployment. The ripple effects of the fraud extend far beyond Peregrine, however, affecting up to 25,000 investors and approximately 800 brokers. We are all too familiar with the effects that the Sandusky scandal has had on Penn State. Beyond financial, its reputation will probably be forever tarnished by the abuse. As business owners or managers, we may not always like to hear that we need to have more complicated processes, or that we need to comply with even more regulations. On the other hand, when we read about a company reeling from embezzlement, employee lawsuits, or compliance claims, we breathe a sigh of relief that it’s not us. Creating a culture that empowers and protects our employees so they may speak up, training all staff members about risk management and regulations, and trusting HR professionals’ advice on compliance may prevent all of our businesses from the suffering that Peregrine and Penn State now face. • Julie Tappero is president and owner of West Sound Workforce, a professional staffing and recruiting company based in Poulsbo and Gig Harbor. She can be reached at julie@westsoundworkforce.com. View her LinkedIn profile at www.linkedin.com/ in/jtappero. The recommendations and opinions provided are based on general human resource management fundamentals, practices and principles, and are not legal opinions, advice, or guaranteed outcomes. Consult with your legal counsel when addressing legal concerns related to human resource issues and legal contracts.
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Coffee Oasis adds Poulsbo center thanks to Rotary The teen area will include a pool table, television and other things to keep teens busy. The center will be open to anyone under age 25 who needs a place to hang out, not just those who enter case management services. The tentative grand opening date has been set for Nov. 10. The Poulsbo Rotary, which has about 130 members, has done multiple community projects but this is the first time for the service club to involve others
Volunteers provided labor for the remodel during many work parties.
Photo courtesy Poulsbo Rotary
Oasis, page 18
October 2012 Kitsap Peninsula Business Journal • KPBJ.com 15
By Rodika Tollefson Coffee Oasis will open a new location by November to serve homeless and street youth. The nonprofit organization, based in Bremerton, is getting ready to open a facility in Poulsbo that will be similar to the Bremerton location before it expanded. The Poulsbo center, located in the former Public Works Building on Iverson Street , will include a café open to the public, laundry and shower facilities for the teens and a recreation/commons area, as well as administrative space for needs such as case management. The saying that it takes a village applies to the project literally. The Poulsbo Rotary Club spearheaded fundraising, planning and remodeling. The club enlisted various community groups and individual volunteers to help, in a fi rst communitywide effort of its kind for the club. The city is leasing the building, which had been vacant, to Coffee Oasis at 40 percent of the market rate. The Rotary raised $19,600 at its annual auction in 2011 specifically to help homeless youth in North Kitsap. Through three community forums and other outreach, the club identified Coffee Oasis as the best organization to bring those kinds of services t o the north end. The timing was good: Coffee Oasis has had a vision for a couple of years to add new locations around the county. “We had a dream and a vision … but didn’t know how to accomplish that goal,” said Coffee Oasis executive director Dave Frederick. Jim Ingalls, owner of Kitsap Trident Homes and a Rotary member for 32 years, volunteered to take on the role of general contractor, with the help of hi s son, Justin. Multiple work parties have been organized to remodel the building, including the addition of a small commercial kitchen. Many of the volunteers at the work parties were not club members, according to Rotary president Meredith Green. She said the support has been pouring in since Rotary reached out to the wider community. “Once people learn about the homeless youth and how we can help turn it ar ound, they’re willing to step up,” she said. A total of nearly $60,000 has been raised for the project. The funds will pay for equipment and supplies, as well as initial operations. Although the building was still getting final touches in September, staff had already been hired for this location and began the outreach into schools and on the streets. The coffee shop will have a separate entrance. Lunch will be available in addition to espresso, and proceeds from the retail operations go to support the facility.
Technology summit will hear from Consumer Electronics Assoc. CEO Gary Shapiro is keynote speaker for WSTA event in Bremerton By Tim Kelly, Editor When Gary Shapiro steps in front of the audience as keynote speaker at the West Sound Technology Association summit in Bremerton, he won’t have any notes, won't bring any state-of-the-art gadgets with him and he won’t rely on any A/V special Charles Keating effects. WSTA president “Even though it’s Microsoft territory out there, you’re not going to get a Powerpoint presentation,” Shapiro said in a recent phone interview from his office in Arlington, Va. But he’ll have plenty to say at Western Washington Summit 2012: Leadership & Innovation, about the conference’s theme or whatever else comes up. “I’ll talk about anything anybody wants to talk about,” he said. WSTA president Charles Keating said the group has had some high-profile speakers in past years, but he called it “a big coup for us” that the 11th annual summit
December on The Hill's Congress Blog landed Shapiro, president headlined "The copyright lobby and CEO of the Consumer comeuppance," Shapiro wrote about "the Electronics Association. deadly impact this legislation will have on They both anticipate innovation and the Internet," and noted technology innovation and that "Americans are openly and loudly advancement to continue at a rebelling." vigorous pace, creating "Protecting fair use for consumers has opportunities for forwardbeen very important for me," he said. thinking entrepreneurs and Other issues he's advocated for and may businesses. Summit keynote discuss at the WSTA summit include "What's going to happen speaker Gary spectrum legislation aimed at allotting in technology in the next 10 Shapiro’s new book more bandwidth for wireless carriers; years is just going to will be published in CEA’s green initiative to increase completely blow away what's January. electronics recycling; and immigration happened in the last 10 reform to make it easier for US companies years," Keating said. "The iPhone came to retain foreign-born workers involved in out in 2007, and look at how that's leading research and development in changed personal communication and science, technology and engineering. mobility." focused on much more than the coolest Politically, Shapiro is pragmatic and not Shapiro sees a widening range of new gadgets out there. aligned with either major party, generally cutting-edge tech functions beyond "It's not just promoting tech for tech's sake," favoring Republican economic policies communication on the horizon. Keating said, adding that WSTA has "an while sharing Democrats’ views on a "There's a whole bunch of trends," he economic development mission" and is number of social issues. said. "It's not only the shift to wireless, but involved in "promoting “I’m definitely a there's nanotechnology, robotics, technology policy Romney supporter, interactivity." issues." but I’m not a While there surely will be techies at the Shapiro devotes a Republican,” he said summit comparing trendy smartphones “What’s going to happen lot of his time to in his phone and tablets, WSTA and Shapiro are in technology in the next addressing those issues interview with the and how they impact Kitsap Peninsula 10 years is just going to businesses and the Business Journal. completely blow away economy. He's a weekly In a recent what’s happened in the online columnist for Huffington Post Forbes, writes op-eds column he questions last 10 years.” for other high-profile the effectiveness of sites such as the the two-party system, — Charles Keating, Huffington Post, and is and criticizes both president of West Sound a New York Times sides for failing to Technology Association best-selling author who address major issues has a new book coming such as working on out in January. “any specific His first book was solutions to our exploding deficit.” released in January 2011 at the However, he concludes his column by International Consumer Electronics Show, saying the health of the US economy is his the CEA's huge annual trade show in Las top concern in the presidential election, Vegas that showcases innovation and new and writes that President Barack Obama is products. His book "The Comeback: How “the most anti-business president I’ve seen Innovation Will Restore the American in my lifetime.” Dream" reached No. 7 in the Hardcover The WSTA summit will be held Oct. 10 Advice & Misc. category on the New York at Kitsap Conference Center, and Keating Times bestseller list. and Bremerton Mayor Patty Lent see the His new book that will be published by event featuring a speaker of Shapiro's Harper Collins in January is "Ninja national stature as an excellent opportunity Innovation: The Killer Strategies of the to promote what the city and region have World's Most Successful Businesses." to offer. "The first book was focused a lot on "We want to showcase this area outside public policy," Shapiro said. "The second the region," Keating said. "We want to one is more about what companies, show that Kitsap and Bremerton in regions, governments and even people can particular is a great place to come and do do to be innovative." business." In the realm of public policy, he's Lent will speak at the summit to give an testified at congressional hearings on overview of technology initiatives in Internet regulation and other technology Bremerton and the city's plan for more in issues. He was an outspoken critic of the the future. Kitsap Economic Development overreaching PIPA and SOPA anti-piracy Alliance executive director John Powers bills that were derailed by a groundswell of also will speak before Shapiro's keynote 360-373-2137 • NW-COMMNET.COM CC01NWCOML002LH opposition by Internet users. In a post last presentation.
16 • Kitsap Peninsula Business Journal • KPBJ.com October 2012
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October 2012 Kitsap Peninsula Business Journal • KPBJ.com 17
OASIS
18 • Kitsap Peninsula Business Journal • KPBJ.com October 2012
from page 15 on a broad scale. Although the Rotary coordinated the work parties — which attracted as many as 30 people — many of the volunteers were not Rotarians. “This has been the most diverse group from all parts of the community,” Ingalls said.
The effort has become an example of collaborative projects both for the Rotary and for Coffee Oasis. “I think it’s a great model. It’s good for service clubs like Rotary to engage the community and support organizations like Coffee Oasis,” Green said, adding that reaching out to many others has not only helped raise support but also awareness about homeless and street kids in North Kitsap.
Coffee Oasis has been in existence for about 15 years and its services include tutoring, mentoring, job training, case management and street outreach. To help fund its services, the nonprofit operates several coffee stands in addition to the Bremerton cafe, as well as roasting and selling coffee, and offers catering. The businesses run by Coffee Oasis provide training opportunities and jobs for disadvantaged youth. The Bremerton facility has been under remodel to add a youth shelter, which is nearing its opening date. Although the organization has built a strong supporter base, Frederick said working with the Poulsbo Rotary has been a unique experience. “To us, it’s been overwhelming, the
breadth and depth of community support,” he said. “It’s become a model for our community involvement and awareness as an organization.” Using the model in South Kitsap The model may already be applied to the next Coffee Oasis project. The café the organization operated on Bethel Avenue in Port Orchard (originally called Solid Rock Café) closed its doors in September after the lease expired. A new building has been identified a few blocks further down the street as a potential location that would be not just a café but include the same concept as the Poulsbo center. In September, South Kitsap Rotary decided to take that project under its wing and is in the preliminary stages of planning. “I’m hoping to model (the Poulsbo outreach) almost directly,” said South Kitsap Rotary Club president Nate Porter. “It hopefully wouldn’t just be Rotarians showing up to do the work, but it would be a community event.” Jim Way, a club member who is a general contractor, has volunteered to oversee construction. The club plans to designate all funds raised at its major February fundraiser — the Bay Street Bash casino night — to the remodel. The cost of the project is estimated at about $100,000 but could be as low as $40,000 if much of the labor and materials is donated. Porter said this would be a multiphase project and the plan so far is to have a teen center on the second floor and the café on the ground level. He hopes that work on the building can start in another month. If the project proceeds at the same pace as the Poulsbo one, the new facility could be ready late summer or early fall next year. The South Kitsap Rotary only has 33 members and Porter said they hope to collaborate with the Port Orchard Rotary as well as other civic groups. “This is definitely bigger than what we’ve done in the past,” he said. “I’m hoping to see a lot of interest in the community.”
Kitsap Bank executive graduates from PCBS Robert Banks, senior vice president and commercial market manager of Kitsap Bank, recently graduated from the Pacific Coast Banking School. PCBS is the nation's premier three-year, graduateRobert Banks level management education program focused specifically on the financial services industry. Banks has over 25 years of commercial lending experience, and has been with Kitsap Bank since 2006. He holds a B.A. from the University of Washington and an M.B.A. from Seattle Pacific University.
October 2012 Edition
Events And Activities VIST the NEW HBA Website! www.kitsaphba.com On Line Registrations! Thursday, October 4 HBA OFFICE CLOSED Staff at Fairgrounds Developers Council, 7:30 a.m. CANCELLED Next Mtg.: Nov. 1 @ 7:30 a.m. Home & Remodel Expo www.kitsaphbahomeshow.com H&R Expo DAY 1 - October 5 Doors Open 2 p.m.
Peninsula Home & Remodel Expo — Reinvest in Your Dream! Join us at the Kitsap County Fairgrounds’ Kitsap Sun Pavilion for three days of great ideas, solutions, and on trend products for your home! For the very latest details on this 7th annual expo, please visit www.kitsaphbahomeshow.com. The Peninsula Home & Remodel Expo is October 5, 6 & 7. NEW THIS YEAR! We have revamped the seminars. Attend all our seminars for free with your daily paid admission. Seminars are provided to help you to find that inspiration to Reinvest in Your Dream. These are not sales pitches, but rather informative, free, and brief sessions on topics you care about.
2012 OFFICERS 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 Karla Cook • Judy Granlee-Gates Joe Hurtt • David Godbolt, CAPS, CGP, CGR Kevin Hancock • John Leage Robert Lubowicki • Leslie Peterson, CGA Shawnee Spencer • Jim Way, CGB
2012 STATE DIRECTORS Robert Baglio • Greg Livdahl • Gale Culbert Lary Coppola • Judy Mentor Eagleson Justin Ingalls, RCS • Wayne Keffer, CGR, CAPS Robert Coultas • Ron Perkerewicz
2012 ALTERNATE STATE DIRECTOR John Armstrong • Walter Galitzki Brent Marmon
LIFE STATE DIRECTORS Bill Parnell
2012 NATIONAL DIRECTORS
H&R Expo DAY 2 - October 6 Doors Open 10 a.m. H&R Expo DAY 3 - October 7 Doors Open 10 a.m. Monday, October 8 HBA OFFICE CLOSED Staff at Fairgrounds Thursday, October 11, 11:30 a.m. HBA General Membership Luncheon Kitsap Golf & Country Club Thursday, October 18, 7:30 a.m. Builder Breakfast Family Pancake House Kitsap Way Special Guest: Mayor Patty Lent Mon. - Wed., October 22 -24 CECSL LEAD & RE-Cert. Lunch included Register w/ BIAW 360-352-7800 Thursday, October 25 Executive Cmt. Mtg 2 p.m. Government Affairs Cmt. 2:30 p.m. Board of Directors 3:30 p.m.
NEW DAILY SEMINARS!
Wayne Keffer, CGR, CAPS • Judy Mentor Eagleson
FRIDAY: October 5 - The Best of Universal Design Join expert contractors in two different sessions on Friday to learn how you can make your home safe for all capabilities. For our aging population, learn how you can make structural changes to your home and stay in it for many years to come, or how using new products/accessories you can improve your mobility in your home. Universal Design isn’t just for those that are aging but also for those with limited range of motion or other restrictions. Come Friday to learn how to make your home a safe and welcome place for all your friends and family. SATURDAY: October 6 - Hot Trends Throughout the day you will have access to some of our area’s most skilled and knowledgeable trades people. Learn how to move from a dream to a genuinely perfect kitchen. Find out the simple steps to not just want a new home but how to get that home and make it uniquely yours. Confused about whether there is money to borrow for your new construction or home improvement? We have a panel of some of Kitsap’s best lenders scheduled to debunk the myths and help you to Reinvest in Your Dream. SUNDAY: October 7 - No Power Tools Required Today ’s sessions are all focused around homeowners of all skill sets. Put down the TV remote and head on over to the Expo where you can meet experts on all matters relat ed to your home. Sunday afternoon, be sure to come for the Gardening Trends presentation by the Master Gardeners. Kitsap is well known for its beauty and many of our resident’s have created their own private spots of beauty in their yards. Come learn what’s on trend and how to take the steps necessary to get there in your own yard. For all the latest Expo news, please visit: www.kitsaphbahomeshow.com
2012 ALTERNATE NATNL. DIRECTORS 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. . . . . . . . . . . TJ Erickson
HBA STAFF Executive Vice President . . . Teresa Osinski, CGP tosinski@kitsaphba.com Expo & Events Director . . . . . . . . . . . . . . TBD hbaevents@kitsaphba.com Administrative 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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October 2012 Edition
I have enjoyed the extended summer (September), however football lets me know fall is here, and the next couple Wayne R Keffer Construction Inc. months will be busy at the HBA. I thought I would take a 2012 President moment and highlight upcoming events. The Peninsula Home & Remodel Expo is at the Kitsap Sun Pavilion on October 5-7. It will include builders and associates of all types. The variety of vendors has really been diversified and the seminar schedule is all-new, making this show a great opportunity for us to interact with the public. Past shows have been very positive and I expect no less this year and look forward to seeing you there. The fall also means that it’s time for the Remodeling Excellence Awards. Submittals have been made and all that’s left is to see who has won. This awards event has been a great event every year. During the awards, great projects are displayed that have been created by our remodelers and the associate members that support them. See for your self by attending this great event on November 14 at the Kitsap Golf & Country Club. As with all HBA events there will be plenty of time to socialize and build relationships with other members. Government affairs have been working overtime-interviewing candidates for elected office. With Robert Baglio leading we have been able to identify those political hopefuls that are qualified and best represent the values of small business and the building community. The state association has received our recommendations, and in some cases made contributions to their campaign. The building industry association of Washington also has a general election voter guide. I would encourage members to get involved by studying the candidates, look at who is backing them, and check out their voting record on housing related issues. If you are not a registered voter there is still plenty of time. You can register online until Oct 8th (www.waprosperity .org) and in person up till Oct 29th. Why is this important? We have witnessed how close elections can be and it seems that every cycle there is controversy. In many races, re-counts and very few votes make the difference. If you vote and encourage your friends, employees and others to vote, it just might make a difference. God bless you.
Wayne Keffer CGR, CAPS
5 Great Reasons to Buy or Remodel 1. LOW INTEREST RATES Mortgage rates are not expected to remain low. Buying or refinancing now can reduce monthly payments substantially.
2. GREAT PRICES Housing affordability is the best it’s been in years. As the supply and demand in our housing market comes back into balance, prices will begin to rise again.
3. OUR HOUSING MARKET IS IMPROVING Don’t see your dream home on the market? Call one of our professional custom home builders — they can make your dream a reality.
4. ENERGY EFFICIENCY Today’s new homes are designed to save you money on your monthly utility bills, and increasingly incorporate exciting new green technologies.
5. PROFESSIONAL BUILDERS, REMODELERS & LENDERS The Home Builders Association of Kitsap County has hundreds of member companies to guide you through any housing questions you have. Visit our website at www.kitsaphba.com or call us at 360-479-5778.
www.KitsapHBA.com
The Cost of Regulation Creeps into Government — Thoughts to ponder before the November Election. CGP In September I was invited to Executive attend the monthly meeting of Vice President Water PAK. This is a group of our area’s experts on all issues “water” conveyance. The HBA has been invited to this group in the past and we genuinely value the opportunity to get to hear what they are dealing with and to share the perspective of the construction industry. As I was listening and waiting to share my presentation with them, what I heard was interesting, if not a little bit amusing. Just like the construction industry, these purveyors deal with state rules (as well as local and federal regulations). They were discussing a new slew of code coming their way and how the rules are going to affect their bottom line. The bottom line for them means either cut costs, or raise rates to make it up. New rules = new costs. Not a unique concept. What was amusing was that the regulation’s impacts were creeping into other cost factors. At the receiving end of the regulations there are unintended consequences. These consequences are ones you will never find measured on a Washington State Economic Impact Statement. In one example the new rules had raised the attention of labor and the unions might be looking for higher wages to complete the new job requirements, and there were other examples associated to the added costs of testing and training as well. It was a bit ironic and timely they had this discussion because I was there to share with them a bit about the current housing market. My report was that we were seeing multiple market factors that had shown sustained improvement or a flat line over last year. While we’d like to see every indicator improving “flat is the new growth” and we’ll take what we can get. Prices (this is a generalization) are flat county-wide over last year, but closed sales are consistently up each month this year over last. Permit activity has been strong this summer, and is expected to be flat over last year. A key message I shared with them was the importance of recognizing the cost of regulation and its compounded affect. However, they’d already had that conversation and so I hope my message resonated. According to an NAHB study on the cost of regulation, we know that for each dollar of increase in cost, the compounded affect is another 20%. In construction it is often caused by carrying costs associated to the higher fees and the loans taken out to pay them. So if a regulation is roughly $800, the compounded impact is closer to $1,000. We also know from a 2012 NAHB study that in the Bremerton/Silverdale MSA, each $1,000 in increased costs will cause over 250 otherwise qualified buyers to be knocked out of the market. Given that the whole county has only issued just over 300 building permits for SFR construction so far this year, and total property sales remain well below a normal market, imagine how those number could be different if regulations were brought into check. Something to think about as you consider your ballots in November.
Teresa Osinski
October 2012 Edition
As we approach the upcoming election it seems to me the choices have never been so clear. This not only Robert Baglio applies to the presidential The BJC Group election, but many of our 2012 Chair local races as well. The question is, what do you believe is better for America, more government or less government. As Ronald Reagan stated, government is not the solution, it is the problem. Whether you liked or disliked Ronald Reagan, the question I pose to you is, were you better off and was the country better off while he was president. What if Jimmy Carter would have been our President for four more years? Take some time and answer that question truthfully and honestly. Remove yourself from any political affiliations or leanings you may have and answer the question. Bill Clinton saw the writing on the wall when he stated, the era of big government is over and under his presidency the country prospered. All the country prospered. As the saying goes, a rising tide lifts all boats. As I sit back and watch the political folly, the one area that leaves me shaking my head in disbelief is the attack on the so called rich. When did it become a bad thing to be successful in America? America has always been the land of opportunity, no matter who you are or where you are from, through hard work and perseverance, you can succeed. You can be anything you want to be. That is why people from all over the world come to America. That is why my grandparents immigrated to America and why most of our ancestors left their homeland to journey to America. They came to America for the dream of freedom. They dreamed of the opportunity to be successful, knowing that in America you would reap the rewards of your own hard work and through that hard work you could be successful. This whole idea of the rich against the poor is new to me. I do not recall it ever being such a prominent part of our culture. Who has not as a young child dreamed of being rich, to have as much money as you ever needed and to have all your cares taken care of? I am sure everyone dreamed of this at one time or another. It was not viewed as a bad thing. You were not chastised for being successful. It bewilders me to find successful people and companies under attack. It is one of the things that makes me proud to be an American, our American ingenuity and the success of our business men and women and our major corporations. Henry Ford, Thomas Edison, Andrew Carnegie, Bill Gates, and Steve Jobs; were these men bad guys because they were rich and successful, of course not? So why is success being attacked? No good can come from this assault upon success and successful people. It is incredibly divisive, so why does it persist and why is it perpetuated? It will do nothing but divide our Country. America is a melting pot. It always has been and it always will be. Let us find things that unite us as a country, not divide us.
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BIAW Member Rebates! FREE program to money back in your pocket! EASY! No receipts required! The BIAW Rebate Program is aimed at increasing your bottom line! For the minimal effort of informing HBA Rebates about the home construction products you use and when you close on a home or project, you’ll be putting money back in your pocket. All current HBA member builders and remodelers qualify to participate in the program. You can count on checks every quarter! All you have to do is register and submit a claim form. No receipts required! No hidden fees. As the contractor you qualify even if it was your plumbing sub that bought the faucet, etc. “We just received our Q3 ‘11 remittance for the free BIAW Buying Power Member Rebate Program today. That was the easiest money we didn’t really have to work for all year! This is a great program, very quick and easy to complete the paperwork (took about 15 minutes for 2 projects), and our rebate covers about half of our annual HBA membership dues. Thank you for a good program that pays you back!” - Ardi and Miriam Villiard, Owners Heritage Builders NW. Don’t let another quarter pass without registering and submitting your rebate request! You can register right on line at www.HBArebates.com.
EDUCATION UPDATE Stormwater Must Be Controlled! Do you have a Certified Erosion Sediment Control Lead (CESCL) on your crew? A certified CESCL is trained to inspect, install and manage stormwater controls on the job site. The Department of Ecology requires a CESCL on-call or on-site for those projects over one acre or in a subdivision. This certification must be maintained as well. Your certified lead must renew that certification every three years. The Home Builders Association of Kitsap County is offering both the Lead Certification and the Re-Certification this month! All contractors are welcome. Association members receive a price discount. All students must register with BIAW at 360-352-7800. OCTOBER: • 22 & 23 (Monday & Tuesday): CESCL Lead 8 a.m. - 5 p.m. (lunch provided) • 24 (Wednesday): CESCL Re-Certification 8 a.m. - 5 p.m. (lunch provided) Register with BIAW at 360-352-7800.
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October 2012 Edition
Welcome New Members Ron Hemley Septic Installation Inc PO Box 305 Burley, WA 98322 360-876-6104 ronhemleyseptics@centurytel.net And the SPIKE goes to... Randy Biegenwald, Randy Biegenwald CPA
C W Electric CO. 6475 Crystal Springs Dr. NE Bainbridge Island, WA 98110 206-842-2473 cwelectco2@msn.com And the SPIKE goes to... Dee Coppola, Wet Apple Media
Northland Drywall Inc 15907 Vincent Rd NW Poulsbo, WA 98370 360-779-7007 And the SPIKE goes to... Ron Perkerewicz, Inspection & Permit Services
Superior Stone Manufacturing Inc. 22411 Foss Road NE Poulsbo, WA 98370 360-461-5949 superiorstonemfg@yahoo.com And the SPIKE goes to... Jeff Goller, Goller Grade & Gravel LLC
Thank You Renewing Members Over 20 Years Over 1 Year Sun Path Custom Construction Inc (23) Luba’s Floorcovering Inc. (4) Whitworth Excavating Inc. Over 15 Years Signature Design & Cabinetry LLC H & S Quality Construction Quality Heating & Air Conditioning Paul Davis Restoration of 10 Years Olympic Peninsula JCM Property Management LLC Over 5 Years 1 Year Coldwell Banker Park Shore Real Estate Gale Contractor Services Quasa Enterprises Peninsula Paint Company Ronald C Templeton PS Attorney at Law JL Homes
UPDATE YOUR HBA Information! With our new website there are added benefits to being a member and we want you to get all the bang for your buck! Please visit the “Find a Member” tab on the new HBA website. View your listing by searching within categories or by your company’s name. You can have a brief company description, your website, links to your social media accounts as well as a company logo. Please send us all the info so your listing can make an impact! 360-479-5778.
Professional Rain Garden Workshop Register now for a two day workshop for green industry professionals. This workshop will cover design and installation of Rain Gardens. Learn about the regulations, site analysis, hydrologic modeling, materials specifications & maintenance. Learn all this from experienced industry professionals. Class will be October 11 & 12. Location is yet to be determined. Registration is $85 per day/$150 for both days. Registration deadline was late September, but if you’re interested in getting schooled on Rain Gardens, don’t wait! Call the WSU Extension office today! 360-307-4378.
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Poulsbo’s old City Hall may be replaced with hotel By Tim Kelly, Editor The concept of a hotel replacing the old City Hall in downtown Poulsbo is moving beyond the idea stage. Lorig Associates, a Seattle-based real estate developer, is getting the first shot at proposing a viable redevelopment project — most likely a hotel — for the 1.8-acre property. The City Council recently approved an agreement giving Lorig four months to put together a proposal, and during that time the city will not consider offers from other parties to purchase or develop the property. The city is not obligated to accept any proposal from Lorig, but officials are optimistic about a future hotel project. “That’s the current expectation,” Mayor Becky Erickson said. “The concept Lorig and the city have talked about is a potential public-private partnership. “This (contract) lets them move forward with something we’d like to see built.” At one time, the city had planned to tear down the large, sky blue building on Jensen Way that’s been vacant since Poulsbo’s new City Hall opened two years ago. “It’s been sitting vacant for way too long,” Erickson said. “We need to move this property.”
Tim Kelly photo
The old City Hall building in Poulsbo has been vacant for two years, but a developer is working on a proposal that could lead to construction of a hotel on the site. Earlier this summer, the city paid for a consultant to do an analysis of the site and the regional hotel market, and the study concluded a 78-room hotel could be viable there. “It came back quite positive,” said Erickson. Such a project could be an “anchor business” for Poulsbo’s downtown retail scene, and she would like for a potential hotel to have conference space.
Another factor in development discussions is the need for more parking downtown. If a four-story hotel was built, Erickson said, city zoning would require it to have underground parking. Tom Fitzsimmons, CEO of Lorig Associates, said the site has ample size and other good characteristics, including its proximity to the town’s “unique and vibrant” downtown area with lots of shops, restaurants and recreation. But he said the
site does have “some constraints,” such as not being on the Poulsbo waterfront. “As a result, it isn’t as attractive perhaps as other places for new development,” he said. “So there needs to be some sort of partnership with whoever develops it, whether it’s us or someone else.” But he said there’s “great potential” for a successful development on the site, “because you have a very progressive city wanting to make something happen.” Lorig has developed numerous residential and retail projects, mostly larger than what’s being considered in Poulsbo, in larger communities around the Seattle area and in Eugene, Ore. In a development like this in any community, Fitzsimmons said Lorig focuses on “creating space within a city or town that really integrates well and connects.” Whatever proposal Lorig brings back — and that could be a partnership or a sale of the property, or the developer could decide to pass on the opportunity — Erickson said the city will do public outreach to get input from the community before deciding what to do. “We need to make sure whatever we do is suitable and acceptable for community,” the mayor said.
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To Benefit Kitsap County Food Banks Food Drive Runs: Oct. 29 — Nov. 9 Donation bins will be located at participating Kitsap County Real Estate Offices, Lending Institutions, Local Chambers of Commerce and at all Pacific Northwest Title Offices.
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New Gig Harbor nonprofit has big dreams for regional arts center By Rodika Tollefson A coalition of arts and community groups from the Gig Harbor area has been working on a dream for more than a year — to build a regional arts center that would bring together multiple facets of the arts, from performing and visual to literary. In September, the Gig Harbor Arts Center Alliance moved closer to that dream, taking steps to become a 501(c)3
nonprofit. Gig Harbor doesn’t have a big arts venue and the most popular performing spaces available for community use are the auditorium at Peninsula High School and the Chapel Hill Presbyterian Church. Groups are usually able to find spaces for classes, workshops and other events, but with a burgeoning arts community, many felt a dedicated space was needed.
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24 • Kitsap Peninsula Business Journal • KPBJ.com October 2012
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Presentation Mark Hoppen will discuss the Gig Harbor Regional Center for the Arts project at the Gig Harbor Peninsula Chamber of Commerce’s Public Affairs Forum at 7 a.m. on Oct. 25, at Cottesmore of Life Care, located at 2909 14th Avenue NW. The event is open to the public. “Everybody’s in the same boat — they all need a place to do things,” said Anne Knapp, past president of Peninsula Art League. Early last year, Knapp took the idea to her group about creating a facility in Gig Harbor and the more they talked to others, the bigger the idea got. Mark Hoppen, Gig Harbor native and former city administrator, heard about the discussions and jumped on board, bringing along BLRB Architects, the firm that designed the Gig Harbor Civic Center about a decade ago. The Tacoma firm, which has worked on many public buildings such as schools and specializes in sustainable design, agreed to offer pro bono services. The result was the design concept for a facility whose dimensions surprised even Hoppen. “It’s a big idea … but it’s what everybody
came up with and it’s worth pursuing,” said Hoppen, who was elected vice president of the alliance in September. “The design expanded due to the comprehensive involvement of the arts community.” The big idea, called the Gig Harbor Regional Center for the Arts, includes several performing spaces; large group conference space (but not convention size); separate studios for activities such as photography, recording, writing, broadcasting and filmmaking; classrooms and a dedicated children’s studio; a commercial kitchen and a “hot arts studio” for bronze casting and glass. The design also includes a community theater, a performance hall with 1,250 seats and orchestra pit, an amphitheater and a ballroom. And that’s not the full list. Among the groups involved in the vision planning are Peninsula School District and PenMet Parks. Drama teacher Jonathan Bill and music teacher Paula DeMoss represented the school district, and Bill was elected as board president in September. “I’m very excited about the potential to build performance space — several performance spaces — and I’m now even more excited about the integration of different arts in one facility and the collaboration,” said Bill. The coalition has identified an 11-acre potential location in Gig Harbor North, across from the YMCA, for the 88,000square-foot facility. One parcel, about 6.5 acres, is owned by Harbor Christian Center. Hoppen said the church would donate the land, in exchange for leasing the center for Sunday services, but the church would be like any other tenant, with no oversight of operations. The adjacent property is owned by Olympic Property Group and has been mentioned by the school district as a potential spot for a new elementary school. “The Gig Harbor Regional Arts Center concept would be about a $30 million public investment. The most likely method Arts center, page 27
Ryan Const. finishes ReMax office project Tim Ryan Construction, Inc. of Poulsbo has completed a tenant improvement project for the Re/Max Real Estate office in Silverdale at the Clear Creek Shopping Centre at 10516 Silverdale Way NW. The 4,500-square-foot project includes a new waiting lounge with stone fireplace and stained wood ceiling, private offices and conference rooms, and updated flooring and finishes throughout. The second floor offers training rooms and space to expand in the future. The business owner is Craig Steinlicht, a longtime local realtor and member of the Re/Max team. The designer for the project was Susan Baker of Design Solutions.
CASH business training program should be back in business in 2013 By Tm Kelly, Editor A program that provides business training classes, mentoring and ongoing support to help low-income individuals start their own businesses is getting a new lease on life. The Washington C.A.S.H. (Community Alliance for Self-Help) program had to suspend its Kitsap operation for the last four months of 2012 after losing a large portion of its grant funding for the year. But an expected infusion of $80,000 in Community Development Block Grants from Kitsap County and the city of Bremerton should revive the program that has helped aspiring entrepreneurs in the county since 1999. The grants — $48,771 from the county and $31,229 from Bremerton — will be administered through Kitsap Community Resources. The Kitsap CASH program holds its classes and meetings at the KCR building in Bremerton. Although the county and city CDBG grants must be formally approved by the Kitsap Regional Coordinating Council and the Bremerton City Council, respectively, the Kitsap C.A.S.H. director said he’s looking forward to restarting the program. “It’s very good news,” Stuart Walton said. The funds will be available Jan. 1, and Walton said he’s hopeful the next eight-
week session of the business development training program will start in mid-January. “We’ve already got people who have expressed interest in our next class,” he said. According to a summary of the CDBG grant application on the KCRR website, the $80,000 from the combined grants will cover staff and administrative costs for Kitsap Community Resources, which is the contracting agency for the funds. Another component of the C.A.S.H. program is providing microloans to qualified applicants for their start-up businesses. Walton said he appreciates KCR’s willingness to be a partner in keeping the program going. “It’s the same let’s-build-a-business program as what we’ve had before,” Walton said. “One thing I always focus on is the practicality of making money,” he added. “We don’t get into a lot of theory, but instead we focus on what is the process of going out there with great business idea, putting it into a practical product or service, and going and finding a customer who will buy it.” The C.A.S.H. training program was offered in North Mason for the first time this summer, through financial support from local businesses. But Walton said the 2013 CDBG grants will support only the Kitsap program.
ARTS CENTER
from page 26
October 2012 Kitsap Peninsula Business Journal • KPBJ.com 25
to finance its construction would be to form a Public Facilities District, an independent municipal corporation,” Hoppen said. One idea is for this district to request a 0.2 percent sales tax increase, which would take the rate within city limits up to 8.7 percent, lower than Tacoma’s rate. The tax could generate about $1.1 million per year. “The value of the property, plus $10 million in bonds paid strictly from revenues of the public facility district, plus patience for five years, would generate capital from $18 to $20 million,” he said. The rest of the cost to build, he said, would be similar in size and effort to successful campaigns Gig Harbor saw for the Boys & Girls Club, Harbor History Museum and the Y. The next step for the alliance is to conduct a feasibility study to determine the potential for revenue (which would fund operations), operating costs and the economic impact on the area. “It may be that this facility will generate an economic cluster of arts-oriented businesses, increase the volume of local retail sales and increase the tax base and well-being of the Greater Gig Harbor community,” Hoppen said. The study is estimated to cost $51,000 and the group will start fundraising for that cost. The goal is to complete the feasibility study next year, and in the meantime the alliance plans to raise its profile and begin to spread awareness about the project.
Questions abound for employers about Affordable Care Act By Rodika Tollefson The Affordable Care Act, which kicks in on Jan. 1, 2014, has been on the minds of many small business employers. With the U.S. Supreme Court ruling in favor of the reform earlier this summer, businesses are looking to understand what the impending changes will mean for their bottom lines.
The Kitsap Peninsula Business Journal turned to Bainbridge Island’s CarneyCargill, Inc., the largest health insurance brokerage on the Kitsap Peninsula, with questions about the ACA. The firm, called an insurance “producer” in official terms, works with more than 40 insurance companies to provide various life and
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health insurance plans, both for individuals and for small groups up to 200 employees. Mackie Cargill, one of the two principals, has been in the industry for 23 years, while her business partner, John Carney, 25 years. Cargill has a degree in microbiology and worked in health care earlier in her career. KPBJ caught up with Cargill just as she was preparing to talk on the topic of the ACA for the Bainbridge Island Chamber of Commerce, one of several chambers for which Carney-Cargill provides exclusive insurance coverage. Cargill works especially with companies that employ up to 200 people. KPBJ: What are you currently seeing with regard to the ACA impact? Cargill: The Affordable Care Act has certainly created a lot of upheaval. Most employers are concerned and not Mackie Cargill quite sure where to turn. We were in suspended animation until the Supreme Court ruling in June. We’re encouraging our clients to get educated. The law has outlined the framework and now it’s coming down to the details. KPBJ: What are some of the major aspects they should know about? Cargill: Employers with 50 or more full-time employees will have different rules than smaller employers. Small employers with 50 or less will not be required to offer insurance for employees. For us, one issue we want to bring to the attention of employers with full- and part-time employees is that they need to look at the full-time equivalent (FTEs) because they may be on the cusp of which set of rules will apply to them. KPBJ: What questions are small business owners asking about the impact of ACA? Cargill: At this point employers are wanting to know, can they keep the plan they have now? They’re concerned whether inside the (Health Benefit) Exchange (see related story) there are going to be affordable plans. KPBJ: Do they have to buy within the exchange? Cargill: They do not but some plans will not be offered anymore or be limited because plans outside the exchange will have to be similar. KPBJ: Is there anything businesses need to do now besides being educated?
Cargill: We’ve gone too far down the road toward implementation and it would be very difficult for the Affordable Care Act to be reversed. And not everything about the Affordable Care Act is bad… I think we all need to be paying very close attention to what the Washington Health Benefit Exchange will look like and when they’re accepting comment, to let them know what small businesses need. Companies need to be aware about what’s going on. For example, companies with 250 or more employees will have to include on their W-2 forms as of January 2013 the amount paid for health insurance for each employee, so some advisers are saying they can start now and get into the habit. Education is the key right now—and advocating for the things that haven’t been decided, like plan designs. KPBJ: What’s the general feel for how the new mandates will impact businesses financially? Cargill: In the short term, we should all be prepared for costs to go up. For example, things like preventative care are going to be covered but it will take time for the health effects of the coverage to show in the premiums. In Washington, we’re not seeing as drastic a change because the state has been progressive. For example, we’ve had gender parity in premiums within the community pools while in some other states, females pay 200 percent more than males. One of the things worth mentioning for groups over 50 is that penalties for not providing insurance can be $2,000$3,000 per employee per year if only one employee receives tax credits for Exchange coverage (although the first 30 may be excluded). It would make a significant impact on an employer’s costs. KPBJ: How big do you think the implications of the ACA will be in general? Cargill: I think Affordable Care Act will profoundly change health insurance in this country in ways we don’t understand yet. It will have the same kind of impact the New Deal did. I think it’s a little too enormous yet to get our minds around it. … There are so many moving parts, it will be a while before we know what’s going on. It’s not all bad and it’s not all good, but the unknown is frightening. We advise our clients to stay up to date — we’ll be learning together. If there’s a debate over some features of it, we need to be heard and not be passive onlookers.
Dental clinic serving low-income children expanding to Bremerton Nonprofit Lindquist Dental to break ground at youth wellness campus By Tim Kelly, Editor A nonprofit dental clinic’s partnership with the Boys and Girls Club in Gig Harbor and Tacoma is working well. That partnership will continue with a slightly different space-sharing arrangement when Lindquist Dental Clinic for Children and the Boys and Girls Club both become part of the planned youth wellness campus in Bremerton. “It’s been a long process to get this off the ground,” said Carolyn McDougal, president and CEO of Lindquist Dental. “But we’re going to break ground in October.”
Unlike the Gig Harbor setup, where Lindquist operates a three-chair clinic in space rented from the youth club in the Jim and Carolyn Milgard Family HOPE Center, the clinic and club will be more like neighbors in a duplex on the Bremerton campus. “We’re just going to have a common wall, and we’ll own part of the building,” McDougal said. "We're excited to be there." On the other side of the wall from Lindquist’s 1,500-square-foot clinic will be the Boys and Girls Club’s new teen center.
State insurance exchange is gearing up for 2013 launch market.” Based on the Washington State Health Benefit Exchange criteria, the insurance commissioner selected Regence’s Innova — the largest small employer plan — as the benchmark plan for the pool. “We’re charged under the Affordable Care Act which benefits we need to provide — there are 10 categories of essential health benefits that have to be in every plan in and out of the exchange — and the Office of the Insurance Commissioner’s job is to see if anything is missing, whether there are enough services in each category to make sure the plan is meaningful,” said Stephanie Marquis, commissioner's office spokesperson. The 10 “essential health benefits” mandated by the ACA are: ambulatory patient services, emergency services, hospitalization, maternity and newborn care, mental health and substance abuse, prescription drugs, rehabilitative and habilitative services and devices, laboratory services, preventive/wellness and chronic disease management, and pediatric including oral and vision care. In addition, states can decide on supplementary requirements, for which the Legislature would have to appropriate funding. Marquis said a series of meetings with stakeholders, including carriers and consumer advocates, discussed whether anything from the second-largest plan — Kaiser’s HMO — should be added to the benchmark one to “ensure it’s meaningful.” A proposal for the rule is scheduled for a hearing Oct. 23, according to the OIC’s list of pending rulings. “The plan is to adopt the rule in SIE, page 32
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pay on a sliding scale based on family size and income, and no child is turned away because a family is unable to pay. McDougal noted that in Kitsap County, about 42 percent of people on Medicaid don't utilize it for dental coverage, even though proper dental care can help prevent serious health problems. "In Lindquist, we see over 30,000 patient-visits a year. That speaks to the need," said Dr. Sherwin Sinn, who joined the Gig Harbor clinic three years ago after two decades of work establishing dental outreach programs in impoverished countries around the globe. A big benefit of expanding the operation to Bremerton will be offering care for children in military families. Because of Lindquist’s private, not-for-profit status, McDougal said the clinic has a unique agreement with TriCare Dental, the coverage plan for military spouses and children. The agreement lets Lindquist waive co-pays, deductibles and any other out-of-pocket costs. Lindquist plans to work with area school districts to get the word out about the new clinic. The nonprofit is working on securing more grants from foundations and other sources to complete funding for the Bremerton clinic, which will cost close to $900,000 to build. The operation has a staff of about 50 people, and McDougal said the dentists and other employees are paid at a level competitive with what their counterparts in private practice earn. "We have a fully professional staff, and a good compensation plan," she said. "We're basically a business, just not for profit." The operation has an annual budget of close to $5 million, and "we're really efficient with our resources," she added. Lindquist Dental has a 12-member board of directors, and plans to add three positions to represent Kitsap on the nonprofit's board. "I like to call it," McDougal said, "instead of a nonprofit, a for-social-profit business." Website: www.lindquistdental.org.
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By Rodika Tollefson Washington state’s health insurance exchange pool, created as part of the implementation of the Patient Protection and Affordable Care Act (ACA), is close to a ruling that will impact the insurance coverage offered in the state starting in 2014. The ACA was enacted in 2010 and comes into full effect on Jan. 1, 2014, although some of its requirements already have been implemented. One of the requirements is to create insurance pools, called exchanges, where both individuals and companies with up to 50 full-time employees can buy insurance plans. Although these businesses are exempt from the ACA requirement for employers to provide insurance, they can receive tax incentives for doing so. The purpose of the exchanges includes creating access for uninsured individuals as well as a mechanism for qualified individuals and businesses to get tax credits. The exchange will be acting as a conduit for the tax credits, which will be issued by the IRS. A proposed rule by the state Office of the Insurance Commissioner, expected to be approved in November, will set the benchmark plan that carriers will have to offer starting in 2014. While carriers don’t have to sell through the exchange, plans outside of exchanges will have to offer benefits similar to the benchmark plan and cover the benefits criteria that have been established by the state. “But we don’t set any prices or define provider criteria, or replace the other markets,” said Michael Marchand, communications director for the Washington State Health Benefit Exchange. “The prices will be set by the
The new children’s dental clinic will have six chairs, and should be ready to start seeing patients by the beginning of the 2013 school year. Bremerton Mayor Patty Lent said the Lindquist operation is a natural fit with the planned wellness campus, and the nonprofit clinic will help fill a significant community need providing dental care for low-income families. “I think the more services there that government doesn’t have to supply, the better,” Lent said. She added that the arrangement between the Boys and Girls Club and Lindquist to share a building is “that collaboration we’re always looking for.” While new to Kitsap County, Lindquist has been operating for 75 years and has a history of providing service for low-income families in communities with a large military presence. The nonprofit is based at its clinic in Parkland, south of Tacoma next to Joint Base Lewis-McChord. For a long time the operation was primarily a school-based program, treating patients through an affiliation with the dental program at Bates Technical College in Tacoma, McDougal said. Then in 2001 Lindquist was able to purchase a five-chair clinic in Parkland, and “we really made a big shift in how we operated.” Not only in location, but in staff. Lindquist depended on a rotating group of volunteer dentists to treat patients at the college, but hired its own dental staff for the new clinic. Since it opened, Lindquist has doubled the clinic’s size and plans to add five more chairs in Parkland next year. The newest of the nonprofit’s four clinics, in South Tacoma, is a partnership arrangement like in Gig Harbor, leasing space inside a Boys and Girls Club center. The Gig Harbor clinic has been open a couple years, and has gradually built up to operating four days a week. Lindquist, which treats children of any age under 19, accepts most private insurance but the majority of patients are covered by Medicaid. For treatment costs that aren’t covered, families are asked to
Hearing loss, if not addressed, can have impact in workplace
28 • Kitsap Peninsula Business Journal • KPBJ.com October 2012
By Megan Nightingale There is a lot of evidence out there to remind us to stay active, moving and socializing. Physical fitness immediately comes to mind when we think of staying active, but staying mentally active is also equally as important, if not more so for long-term health benefits. It has been shown by researchers who study longevity that keeping connected to one’s family, home or work community is crucial to long-term mental health and can help us avoid a myriad of health issues such as dementia, heart disease, diabetes and Alzheimer’s. There is now evidence that links hearing loss with the above mentioned chronic conditions. Nothing interferes with staying close to family, friends or co-workers more than hearing loss. It is worth noting that 65 percent of people who have a hearing loss are below retirement age. This has a significant impact in the workplace. A recent survey done by the U.S. Department of Education notes that middle-aged (4564) participants who had a hearing loss but
no treatment (no hearing aids) felt that they were being passed over for promotion much more often than their normal hearing counterparts, or their counterparts who had hearing loss but wore hearing aids. The study also found that those with unaided hearing loss were unemployed at a higher rate than their aided peers. Middleaged to older working people with untreated hearing loss are also found to be three times more likely to fall at work as their normal hearing peers. When a hearing loss affects one at work, there is usually little sympathy among coworkers and supervisors. One reason may be that hearing loss is invisible. There is no outside visual evidence of a hearing loss. Therefore, many suspect the hearingimpaired person of not paying attention, or worse, ignoring their co-workers or supervisor. Having a hearing problem can be very hard to self-identify in the beginning stages because our brain so easily adapts and compensates for hearing loss. Our brain works hard to find the right words that make sense, compare what a colleague says to what they have said before, and uses other means to help us make sense of a conversation.
More Health Care Quarterly stories at kpbj.com n Doctors Cinic hiring of female urologist fills a niche n Dentist at nonprofit clinic has taken dental care worldwide n New study compares future health care costs under Obama, Romney plans I have personal experience with this. I have a hearing loss and I am in the business! My hearing loss came on gradually starting in my 40s. I only noticed it in really noisy places where I struggled to hear someone across from me. But in my mid40s, I found that I was guessing at what my clients were saying during a critical testing segment for identifying hearing problems and solutions. I had to ask people to repeat themselves. It was then I realized I was suffering from the same difficulty that I was helping people with in my career. My work was being affected, so I began
to wear hearing aids right away, allowing me firsthand knowledge of the advantages of the latest hearing aid technology. I can report from personal experience on how hearing technology helps in the workplace, at home and in social situations. If you find you are having more trouble lately hearing what your co-worker or supervisor is saying, or if you find yourself exhausted at the end of the day from trying to hear at work, it is time to get a hearing test. Some physicians’ offices will screen hearing and send you on for a comprehensive hearing evaluation if it shows a problem. Most health insurance plans will cover a comprehensive hearing test. Some require a physician referral to an audiologist. The most important thing to remember is that a hearing loss does not usually go away. The faster it is treated, the more natural one’s hearing will be both at work and at home. Don’t let hearing loss keep you from being your best at home, work or in your community. If you are interested in learning more about hearing or are interested in a hearing test, contact Peninsula Hearing at 360-697-3061. • Megan Nightingale owns Peninsula Hearing in Poulsbo.
Harrison’s healing garden designed to provide respite By Rodika Tollefson When Judy Hagen’s late husband, Gary, fought leukemia a few years ago, the couple spent more time at Harrison Medical Center for six months than they did at their own home. Hagen recalls how difficult it was for him to find a place around the hospital where he wouldn’t be reminded of his fight. “If only there had been a place for my husband to step outside and sort of feel normal for a little bit,” she says. When she received a call from Harrison to be on a committee planning a healing garden for the Bremerton campus, Hagen says she was overjoyed. The garden would
have been exactly the kind of place where Gary could have found temporary refuge. “The smell of fresh air, hearing the sounds we take for granted — even 10 minutes would have been healing for him,” says Hagen, who lives in Port Ludlow. After 10 years of dreaming, and more than two years of planning and designing, the Less and Betty Krueger Family Healing Garden opened in September. The 3,100square-foot rooftop garden is adjacent to the inpatient oncology unit and the radiation oncology department — which has a direct view from inside. But it’s designed not only for patients but also caregivers, visitors and hospital staff. Photo by Rodika Tollefson
Franciscan’s Community Cancer Program focused on outreach, prevention By Rodika Tollefson A small group of health care providers and patient-support professionals were on hand at Key Medical Center on the Key Peninsula on a recent Saturday to offer free cancer-screening and other health services. Sponsored by St. Anthony Hospital in partnership with several providers, including local physician Dr. William Roes, the event was part of Franciscan Health System’s Community Cancer Program. The program at St. Anthony, based out of the Jane Thompson Russell Cancer Care Center, has been steadily growing since the hospital and the adjacent outpatient medical plaza opened several years ago. Focused on cancer prevention and outreach, including screenings and support for cancer survivors, the program has a comprehensive list of offerings that range from educational talks and nutrition classes to help from patient navigators and support groups. “We would like to have an impact on reducing diagnoses of late-stage cancer so we can find and treat cancer earlier, as well
as make sure everyone in underserved populations has screenings regardless of insurance,” said program co-manager Jamie Dobosz. “We also work with survivors to help them with (tools for) healthy living.” Monthly yoga sessions, art therapy (see related story), a popular Knit for Life cancer support group, skin care and massage therapy are all part of the program, and, with a couple exceptions, the services are offered at no charge and available to the public, not just Franciscan patients. While an on-site nurse serves as a navigator for cancer patients, additional “lay” navigators reach out to low-income women, especially in underserved and highrisk populations, to identify those eligible for breast-cancer screening. The lay navigators are part of a program funded through the Susan G. Komen Foundation along with state and federal grants. Working with minorities such as AfricanAmericans, Koreans and Pacific Islanders, the navigators are already tapped into the
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outside has been shown to improve safety … and they go back to their units clearheaded and refreshed.” The garden includes a covered area with furnishings, a wheelchair and ramp to a raised area — for physical therapy purposes — and space for creative programming such as art therapy. The focal point is a 9foot-tall Tree of Hope sculpture, created by renowned Silverdale artist Lisa Stirrett.
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Garden, page 30
Kitsap Foot & Ankle Clinic Welcomes Dr. Andrew Hune, DPM & Dr. Kirsten Grau, DPM
Dr. David Gent, DPM
Dr. Andrew Hune, DPM Dr. Kirsten Grau, DPM
Dr. David Gent, DPM and the Kitsap Foot and Ankle Clinic would like to introduce Dr. Andrew Hune, DPM and Dr. Kirsten Grau, DPM. They both bring a special set of podiatric medical and surgical skills and knowledge to the Kitsap Peninsula. Appointments are available for both doctors and we appreciate any referrals. We are anticipating opening two satellite clinics, one in Port Orchard and another in Poulsbo to better serve our patients in the northern parts of Kitsap County. Please join us in welcoming Dr. Hune and Dr. Grau. Feel free to stop by the office and/or call for an introduction.
Dr. David Gent, DPM
Dr. Kirsten Grau, DPM
Dr. Andrew Hune, DPM
Benedictine Hospital – New York Trained in forefoot, rear-foot and ankle surgery. Board Certified by the American Board of Lower Extremity Surgery. Board Certified in Podiatric Medicine & Surgery. Fellow of the American College of Foot & Ankle Surgeons. International lecturer.
Yale University – Connecticut Trained in forefoot, rear-foot and ankle surgery. Interest in reconstructive surgery. Associate Member of the American College of Foot & Ankle Surgeons.
Benedictine Hospital – New York Trained in forefoot, rear-foot and ankle surgery. Interest in wound care and limb salvage. Associate Member of the American College of Foot & Ankle Surgeons.
New patients welcome. Same day appointments available. Early & late appointments available. Most insurances accepted.
Kitsap Foot & Ankle Clinic (360) 377-2233 • 900 Sheridan Road, Suite 101 Bremerton www.kitsapfootandankle.net
October 2012 Kitsap Peninsula Business Journal • KPBJ.com 29
Providing Superior Service & Quality
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“It’s really about being a sanctuary, for renewal and rest, giving people a reprieve from something quite stressful, which is hospitalization. Part of it is due to being in nature — it has an effect on people,” says Stephanie Cline, executive director for Harrison Medical Foundation, which raised funds for the garden through private donors and events. “It gives families an alternative destination to relieve stress when they’re here. There are also known benefits for staff — even a few minutes
Outreach, page 32
PROUDLY SERVING KITSAP SINCE 2010
—— Fine
Silverdale artist Lisa Stirrett, seen in the background adding decorations to the Tree of Hope, created the steel tree as well as the glass fountain for the healing garden. The magnetic tree decorations will change several times a year. Pink blossoms in honor of Breast Cancer Awareness Month will decorate the tree in October, followed later by autumn-colored leaves.
Holly Ridge Center becomes lead agency for birth-to-3 services in Mason Co.
Photo courtesy Holly Ridge Center
A program called High 5 is specifically geared for children with autism. For 2- and 3-year-olds, High 5 includes a developmental play class, and parents take turns helping in the classroom. been working with school districts for nearly 30 years. The Infant Toddler Program provides evaluations, physical therapy, speech therapy, occupational therapy and educational services, among other things, and most are provided in an in-home setting (including day care), according to Connie Zapp, program director. B esides the Holly Ridge facility in Bremerton, staff also work out of the Poulsbo Elementary School and Givens Community Center in Port Orchard. At the Bremerton neurodevelopment and early learning center, on-site activities include hydrotherapy, integrated developmental play groups and “mommy and me” sessions where parents of the younger kids can network with other parents and get tips from experts. Additionally, specific services are available for children diagnosed with autism as well as a feeding group for children who have ongoing feeding issues. “Families are referred through doctors, child care providers or refer themselves. We do
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By Rodika Tollefson The Holly Ridge Center recently became the Local Lead Agency in Mason County for providing birth-to-3 services. The nonprofit organization, based in Bremerton, has already been serving kids eligible for the program in North Mason. The lead agency award by the Washington Department of Early Learning and the Early Support for Infants and Toddlers program means Holly Ridge will additionally provide administrative support and guidance for other Mason County providers of birth-to3 services. “We’re very pleased because they’re very good at what they do and they’re experienced,” said Elizabeth Custis, public health nurse with Mason County Health Department and member of the Mason County Interagency Coordinating Council board. Holly Ridge Center (www.hollyridge.org) has been providing services o n the Kitsap Peninsula for nearly 50 years and is also the Local Lead Agency in Kitsap. In addition to the Infant Toddler Program, which offers intervention for children with developmental delays, the center’s Adult Employment Services Program provides vocational rehabilitation, job training and placement for disabled adults. As the lead agency, Holly Ridge is tasked with overseeing all agencies providing b irth-to3 services in Kitsap and Mason to ensure the federal Individuals with Disabilities Act is followed. The IDEA, which regulates special education for K-12 students, also includes provisions for states to identify kids under 3 and preschoolers who have developmental disabilities, so they can start receiving help early to be better prepared for school. School districts have the option of providing all the pre-K services themselves or contracting with organizations like Holly Ridge — which has
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a standardized evaluation in all areas of development,” Zapp said. Among the main concerns that prompt referrals are toddlers not talking or walking, but kids who have certain medical conditions, such as Down syndrome, qualify automatically. “We have a pretty large group of medically fragile children, as well as those with delays,” Zapp said. Each child receives a voluntary, individualized family plan, which changes as
GARDEN
from page 29 “We wanted a central story for the garden. The Tree of Hope became the focal point of shared experience,” Cline says. The steel tree will change through the seasons with magnetic decorations created by Stirrett. The first set is pink blossoms, in honor of Breast Cancer Awareness Month in October. The garden will be interactive, mostly through a kiosk that will have both information about the garden and personal stories and encouraging words from community members. “I’m so excited for people to experience this garden,” Stirrett says. “I think the tree will mean something different for everybody. I want people to find some hope, healing, joy and inspiration out of it.” Stirrett also created another major garden feature, a cascading fountain made of sections of glass — each measuring 7.5 feet long and comprised of hundreds of strips of fused glass — flanked by slate stone columns on both sides. The final piece of the water feature, which Stirrett expected to add this fall, will be three glass salmon, red and orange in color. The healing garden was supported entirely through charitable giving, including more than 100 donors. The Harrison Foundation began raising funds about five years ago, Cline says, and dedicated all money raised from one of the Festival of Trees events to the project. “We consider it the very best in health care design and a great example how
the child develops. “The whole idea of intervention is to show parents or child care providers what they can do every day to help the child,” she said. Nearly 50 Holly Ridge Center staff include speech therapists, family resource coordinators, occupational therapists, infant mental health specialists, a nurse, a special education teacher, a teacher certified to work with autistic kids and paraeducators, among others. Several outside specialists come in regularly, including a nutritionist from the University of Washington and a developmental pediatrician from Mar y Bridge Children’s Hospital. HRC also coordinates with other therapists within the community and works closely with the Navy and other stakeholders. “The community really works together,” Zapp said. Although the majority of children served by HRS live at or below the 200 percent federal poverty level, income is not a qualification criterion. Families only pay for the medically based services, which can be b illed to insurance. Those who can’t afford their co-pays or don’t have insurance can apply for hardship waivers. Holly Ridge, page 31 charitable giving makes this hospital a special place,” she says. Bremerton’s Rice Fergus Miller Architecture provided the design in collaboration with Seattle landscape design firm Hafs Epstein, which specializes in therapeutic gardens. Cline says the design was guided by input from a variety of stakeholders and professionals, including master gardeners. The plants were selected based on ease of maintenance, year-round interest and characteristics such as lack of strong fragrance (which can adversely impact chemotherapy patients). A group of volunteers has been recruited to maintain the garden, and Cline says there will be ongoing charitable giving opportunities to pay for new plants and other maintenance and enhancements. Growing trend Healing gardens date back more than 1,000 years but are going through a resurgence. Various studies have shown clinical benefits such as reducing blood pressure, pain, anxiety and depression; decrease in length of hospitalization; improved satisfaction with the facility and improved staff performance, among other things. Hagen says she is pleased with the outcome of the steering committee’s work and feels the healing garden “will be a place of hope for years to come.” “Just to get out with a loved one — I love the concept where you can sit and it’s kind of like your home,” she says. “For the people that find themselves there, it will give them a little normalcy, hope and a sense of healing.”
Harrison may be close to concluding its merger search By Tim Kelly, Editor Harrison Medical Center has been an independent system for nearly a century, and the CEO says it could remain so, but Harrison is close to completing a partnership agreement with a larger health care system. Speaking at the Bremerton Chamber of Commerce monthly luncheon on Sept. 18, president and CEO Scott Bosch addressed the “potential for Harrison to deviate from its 94-year history of being an independent organization.” Harrison’s 16-member board of directors and an advisory committee have spent most of this year in a process to recruit and evaluate possible merger partners, and Bosch said a decision may come soon. “We’re looking at three organizations right now, and they’re all nonprofit,” he said, although he couldn’t identify them yet. “It’s certainly possible that we may have a decision in the next couple of weeks,” he said, although it may be longer than that before Harrison and whichever organization it affiliates with are ready to make a public announcement. “I’d love to tell you more details, but I can’t right now,” Bosch said. While Harrison has conducted its search, there have been significant mergers among other regional hospital systems. One of the most notable was the announcement in August that Catholic Health Initiatives — the parent of Tacoma-based Franciscan Health System, which operates St. Anthony Hospital in Gig Harbor and has a presence in Kitsap County — plans to merge with PeaceHealth of Vancouver, Wash. If approved, that merger would see a combined system of 16 hospitals and other facilities in Washington, Oregon and Alaska. When the deal was announced, according to an article in the Kitsap Sun, an executive with PeaceHealth said the new system would have more Northwest hospitals affiliate with
it, and that wouldn’t be limited to religiousaffiliated ones. The executive declined to say whether Harrison might be one of them. Asked at the chamber lunch whether the Catholic Health Initiatives-PeaceHealth merger would impact Harrison’s search, Bosch paused before answering “maybe.” He said he couldn’t comment more specifically, but said the hospital board has been monitoring all the merger developments and the “ripple effect” in the industry. “The landscape is constantly changing,” he noted. “All this is happening while we’re working through what our options are.”
Bosch also stressed that Harrison is not seeking a merger partner because it needs such an affiliation to survive. “The question is not can we remain independent; we can,” he said. “We’re an extraordinarily strong organization.” He cited expansion of the Silverdale campus, where a new orthopaedic hospital is under construction, and plans to build an ambulatory care center in Bainbridge Island within the next two years. But looking to the future, he said affiliating with a larger system may be the best course to sustain Harrison’s ability to be the primary
regional health care provider for Kitsap communities. “This is not something the board has to do, but wants to do,” Bosch said of a potential merger. And though he couldn’t say what organization Harrison might partner with, he emphasized that the hospital has been open and transparent with the public and with its employees about the process it’s been going through. “We’re nine months into this process, and this is a very important decision that you do not want to rush,” he said.
HOLLY RIDGE
October 2012 Kitsap Peninsula Business Journal • KPBJ.com 31
from page 30 The center’s funding comes through a mix of sources, including fees from the contracting school districts, some state funding and grants, private donations and fundraisers such as an annual golf tournament. “Our funding hasn’t changed while the number of kids served has grown significantly,” Zapp said. Currently, 315 children are enrolled at the center, which is open year-round, compared with 250 two years ago. The growing number is reflected in Mason County too. Custis, whose office refers clients to Holly Ridge for evaluation, said the birth-to3 segment has been very busy over the past year. “There’s absolutely a need for it. The piece that’s so important is that we need an agency that can evaluate these children promptly so they can get their needs met quickly,” she said. “We’re lucky because Holly Ridge is very professional. They’ve already hired two parttime family resource coordinators (for Mason County) including one who speaks Spanish… They’re coming and looking at more outreach in the less-served areas so they can provide more services.”
SIE
Photo by Rodika Tollefson
Licensed clinical massage therapist Sally Wyatt, certified in oncology massage, works on patients at St. Anthony cancer center.
OUTREACH
from page 29 respective communities, said Tricia Sinek, co-manager of the Community Cancer Program who oversees the navigators. “They already have a foot in the door within their community,” she said. “They make connections and do outreach and education.” In addition to connecting eligible women with screening services, the navigators can provide support such as accompanying them to appointments and connecting with other resources. More than 20,000 women have been reached
over the past six years, Sinek said. “The goal is to help women survive cancer and thrive,” she said. “It’s an invaluable resource.” For qualified women with high insurance deductibles or lack of insurance, financial assistance is available for mammograms through a special fund. A major supporter of this fund is the Gig Harbor Quilt Festival, which donates a quilt to be raffled off to raise money. The lay navigator program is an example of the partnerships Franciscan has with various community groups — the Outreach, page 33
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from page 27 November that will define what are the services that need to be in each category,” she said. Once the ruling is released, insurance companies can start creating their health plans and filing them with OIC in January for qualification. The OIC will approve the proposed rates, as it’s already doing. Marquis said the prediction is that some plans will not see significant price changes because they already offer the mandated benefits. The plans will offer several levels (described by ACA as bronze through platinum). Most of the ACA mandates — including the decisions made in Washington state for the exchange — will not apply to grandfathered plans, which are considered those that, among other things, were in effect on March 23, 2010, when the ACA was enacted and have not substantially changed their benefits since. But the number of grandfathered plans is shrinking. The Kaiser Family Foundation, which conducts regular health-coverage studies, found that 72 percent of small companies offering insurance in 2011 had at least one grandfathered plan, but this year that number is down to 58 percent; the proportion of employees enrolled in those plans has decreased as well. Kaiser counts small employers as those with fewer than 200 employees. Washington Benefit Exchange States have the choice of establishing their own exchanges or using federal ones that will be created later. Marchand said Washington is at the forefront of the ACA implementation. “We decided to jump in early in the game,” Marchand said. “Washington is viewed as being way ahead of the game. We’re considered as one of the lead states in this area and a lot of what’s being done by us will be likely used in creating the federal exchanges.” Based on a September report to stakeholders by a state exchange consultant, 15 states along with the District of Columbia have so far enacted legislation regarding exchanges, and four others did it through an executive order of the governor. The Washington State Health Benefit Exchange was created by the Legislature as a public-private partnership. The state received two federal grants totaling $150.7 million to establish the exchange. Although the exchange was created under the Health Care Authority (which served sort of as an
incubator), it is not a government agency and has its own operating budget, chief executive officer and a bipartisan governing board. The organization has to be selfsustaining by the end of 2014, when federal funding runs out. Marchand said that the governing body is using the same public disclosure and transparency methods as government agencies. Seven committees and two workgroups have been developing the policies that are being approved by the board. The decisions still under discussion include the dental program, navigators, role of brokers and agents, as well as how administrative or other fees will be assessed to finance operations of the exchange. Earlier estimates from the Washington Health Care Authority showed that only about 15 percent of state residents are uninsured, and 85 percent of those uninsured will be able to qualify for Medicaid, which will have expanded income guidelines, or for subsidies. As many as 410,000 people are estimated to be enrolled through the exchange. Once fully functioning, the exchange will be what Marchand compared to Expedia for travel. It will have the one-stop function for qualifying and applying for Medicaid, the children’s state health insurance program, an insurance plan, cost-sharing reductions and tax credits, as well as a shopping tool to compare plans and coverage. Enrollment will not be open until October 2013, but carriers will likely start marketing sooner, depending on how quickly they can be approved by the insurance commissioner and the exchange. “I think the big advantage for being in the exchange is that we’re essentially redefining how health care is being delivered to an audience, many of whom didn’t have health care in the past — we’re creating a storefront for many of those who were uninsured or underinsured,” Marchand said. “This isn’t just a transactional issue, it will fundamentally change how some organizations function, not only on the consumer side but also the business side. We’re all trying to assess that.” For more information about the Washington Health Benefit Exchange, go to www.hca.wa.gov/hcr/exchange. The Office of the Insurance Commissioner will have more complete information on its website in the coming weeks or months: go to www.insurance.wa.gov/consumers/ reform/national_health_care_reform.shtml. General Q&A for consumers and employers and other information is available at www.healthreform.gov.
Nonprofit foundation helps find prescriptions meds assistance By Rodika Tollefson Pharmaceutical companies have long made prescription medications available to individuals who meet certain income criteria, especially to those who are ininsured and underinsured. Several websites now help consumers find these programs based on the medications they need, but one of the challenges is navigating through the qualification process — different for each company — and completing the required paperwork. “There’s a tremendous amount of assistance for people who can’t afford prescription medicines. The challenge is that people don’t know about the assistance, and accessing it can be difficult,” said Todd Myers, executive director for the Prescription Drug Assistance Foundation. The statewide foundation (www.mtgmeds.org/pdaf.html), based in Seattle, was created by the state Legislature several years ago to help fill that gap, and has launched several pilot projects across the state since then. One of them is in Mason County, where prescription assistance coordinator Annette Brown helps people tap into programs offered by pharmaceutical companies as well as other organizations. Her services are free, funded through the foundation. “It’s a very individualized process. I have to look at each medication and what’s available,” she said. “If there are programs available, I will help them fill out the paperwork and get it submitted. My role is helping people access the programs that are there. A lot of folks don’t know about them or don’t understand the process so they have barriers, and my role is to help the process be easy and smooth.” The programs are usually available for uninsured, low-income individuals (typically living at or below 200 percent of the federal poverty level) but some programs have higher income qualifications, as high as 400
Kitsap County volunteers with Statewide Health Insurance Benefits Advisors (SHIBA) will be available for free sessions over the next few months to assist seniors with Medicare prescription coverage and other Medicare benefit programs. Appointments are available on a first-come, first-served basis for these advising sessions, which are scheduled as follows: • Oct. 22, 1-4 p.m., Bainbridge Island Library • Oct. 23, 10 a.m. – 2 p.m., Kitsap Regional Library in Bremerton • Nov. 7, 10 a.m. – 2 p.m., Givens Community Center in Port Orchard • Nov. 14, 1:30-5:30 p.m., Saint Barnabus Episcopal Church on Bainbridge • Nov. 27, 10 a.m. – 2 p.m., Kitsap Regional Library in Poulsbo • Dec.3, 1-4 p.m., Bainbridge Island Library The events are free but registration is required to attend. Call (360) 337-5700 or (800) 562-6418 for information. To learn about the SHIBA program, visit www.insurance.wa.gov/SHIBA.
will fill out paperwork and apply on behalf of patients, and the medications are shipped to the clinic. The Kitsap County Division of Aging & Long Term Care (www.kitsapgov.com/altc) works with seniors and is the local sponsor for the Kitsap County Statewide Health Insurance Benefits Advisors (SHIBA) program. SHIBA volunteers help seniors navigate Medicare plan options including Part D, which covers prescriptions. In addition to SHIBA, the agency’s senior information and assistance program can provide information and resources on prescription help, including reviewing results of the Benefits Checkup website and helping apply to programs. Staff will also send questionnaires to those who don’t have
online access and run the reports on behalf of those seniors. South Sound Outreach (www.southsoundoutreach.org), based in Tacoma, works with clients in the Gig Harbor area and as far as Kitsap. The nonprofit offers assistance to clients without prescription coverage in accessing free or reduced-cost medications. The services include sending the applications in and tracking clients’ approval expiration dates so they can reapply for eligibility review. Individuals who need this kind of assistance don’t have to be current clients to come in. The agency also sends representatives every week to the Key Peninsula Lutheran Church in Lakebay.
the peninsula’s magazine
OUTREACH
from page 32 nonprofit health-care organization does not receive pay for administering the program. Another example is Harmony Hill Retreat Center based in Union, which will offer a free, three-hour workshop on Oct. 9 at St. Anthony called Tools for the Journey, geared not only to cancer patients but also caregivers and family members. “We try to make sure nobody feels like they can’t access services,” said Jenna Lewis, cancer nurse navigator who works with cancer survivors at St. Anthony. “The program has had a huge amount of growth, and the number of patients using it grew exponentially.” For more information about the Community Cancer Program at St. Anthony, contact nurse navigator Jenna Lewis at (253) 530-2642 or program co-manager Jamie Dobosz at (253) 426-6746.
ON THE STREETS NOW!
October 2012 Kitsap Peninsula Business Journal • KPBJ.com 33
Medicare Part D assistance
percent. The programs can be accessed by anyone doing a little online research (there are also centralized websites like benefitscheckup.org), but Brown helps ensure all the steps are followed properly. In general, these types of programs qualify people for a year, and they will either mail medicines to the physicians’ offices or the patients’ home. Myers said $6.5 million in medication assistance was provided through the foundation last year, or about 10 percent of the state’s prescription budget. The foundation’s funding comes from private contributions, fundraising and some grants; it does not receive money through the state’s general budget. In Puget Sound, Brown is currently one of only two coordinators — the other is in the Seattle area — but Myers said anyone else from local areas can call the foundation’s number (888-779-2527) and get assistance through them. His hope is to find more partners in different communities so more coordinators can be added, as funding allows. “We reach out to community organizations like hospitals and clinics or others interested in delivering medications, and working with them on funding and logistical support,” he said. “We’re only successful if we have partnerships with people in the community who are already providing services.” Other assistance Other resources on the Kitsap Peninsula for those who need medication help include Peninsula Community Health Services, Kitsap County Aging and Long Term Care and South Sound Outreach. Peninsula Community Health Services (www.pchsweb.org) has several options for its patients. In addition to access to less expensive medication, drugs from Pfizer and AstraZeneca can be dispensed inhouse for those who qualify under the two companies’ guidelines for free medications. For other medicines, PCHS
Toyota Prius c: New hybrid the most fuel-efficient plug-free car By Lary Coppola The Toyota Prius c is not a Yaris with gas-electric hybrid powerplant, and it’s not just a shortened-up Prius. It is a Prius with a gasoline-electric hybrid powerplant that was mechanically cross-pollinated — for lack of a better term —with the compact four-door hatchback Yaris. The Prius c boasts the low emissions and fuel economy of eco-oriented hybrids like the larger Prius — but it’s smaller — 19 inches shorter and 500 pounds lighter — and substantially cheaper —at least $5,000. EPA rated at 53mpg/city, at $4 a gallon it will take you 450 miles on $36 worth of gas. It may also qualify for a tax incentive or carpool-lane access sticker in some places. The Prius c has no direct hybrid competitors, but in this price range you’ll find the Honda Fit, Chevrolet Sonic, Ford Fiesta, Hyundai Accent, Kia Rio and Volkswagen Golf diesel. Some come close to the highway mileage of the Prius c — but none match it in the city. Walkaround: The Prius c looks like a conventional hatchback. After all, there are only a few ways to position an upright rear end, four doors and the hood on a 13-footlong vehicle. However, the Prius c is easily recognizable as a Toyota. A character line flows from the lower edge, up over the dual grilles, culminating at
the Toyota badge in the center. Triangularshaped outer corners house fog lights on the top models, and the projector headlamps are molded smoothly into the sheet metal. The front door’s relationship to the door cutouts and roofline mimic the regular Prius with its high point at the B-pillar. However the roofline is taller, resembling the Prius v.
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34 • Kitsap Peninsula Business Journal • KPBJ.com October 2012
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At the rear, the sheet metal above the centerline angles rearward, with arches that carry over the wheels and around the rear resembling a motorcycle fender. While the Prius c uses LED-lit brake lights, conventional bulbs illuminate taillights and amber bulbs behind a clear lens for signals. Cargo access is straightforward and a temporary-use spare is under the floor. Any flat tire will go in the well but the cargo floor won’t be flat. Model Lineup: The 2012 Toyota Prius c comes in four models, called One, Two, Three, Four. All share the 99-horsepower gasoline-electric hybrid powertrain, power steering and brakes, and four-door hatchback configuration. Safety features on all Prius c models include dual front, dual front-side, dual front-seat cushion, front and rear sidecurtain and driver-knee airbags, anti-lock brakes, electronic brake-force distribution, VSC electronic stability control, traction control, brake assist, Smart Stop Technology, tire-pressure monitors, and a proximity notification system for pedestrians and cyclists. A rearview camera is not available, however. Interior: There’s nothing groundbreaking, but some unusual design, and level of standard features. Materials are mostly plastic with a few padded soft-touch panels. There’s a tilt/telescoping steering wheel with redundant controls, though the range of the telescopic function is very short. The floor-mounted shifter is standard with PRNDB settings — with B for battery. Eco and EV mode switches are adjacent the handbrake. The front seats are roomy enough for 6footers, comfortable enough for mediumlength drives, and on most models the driver’s seat adjusts for height. Although the rear seats are configured for three adults, two adults or three kids is about it with any degree of comfort and room. The rear seat folds to increase cargo area, and on all but the One model, and has a flexible 60/40 split.
A power port sits below the climate panel, and the USB/auxillary inputs are in a tray above the glovebox. Instrumentation features a digital speedometer, and fuel level, while a multiinformation display provides fuel and energy data with numerous views. Bluetooth and steering wheel controls are standard on every Prius c, while the top two models get Entune — Toyota’s telematics system. It comes with Bing, Pandora, sports, stocks, traffic, weather, iHeartRadio, MovieTickets.com and OpenTable. Sirius/XM and HD audio with iPod connectivity and iTunes tagging come with Navi/Entune vehicles, along with Bluetooth streaming. Entune access is complimentary for three years — 24 to 33 months longer than most similar services. Under The Hood: The Prius c is all about fuel economy and low emissions, with the highest EPA ratings of any car without a plug. The basics of the propulsion system are the same as the standard Prius, but on a smaller scale. Power is courtesy of a 1.5-liter fourcylinder gasoline engine coupled with a pair of electric motors and a 144-volt, 0.87kilowatt hour battery pack beneath the rear seat. Each of the electric motors serves a different purpose and the computer that runs it all sends a maximum of 99 total horsepower to the wheels, with a power-toweight ratio similar to the larger Prius. The Prius c will run up to 1.5 miles on battery alone while staying under 25 mph with a very light foot, although acceleration or speed engage the gas engine much sooner. An electronically controlled continuously variable transmission (CVT) doesn’t work the way most CVTs do but the results are similar. To keep engine and electric motor speeds in the most efficient range for the required performance needs, the speeds are variable. EPA ratings peg the mileage at 53/46 mpg City/Highway, or 50 mpg Combined. We averaged 50 mpg in mixed driving. Behind The Wheel: Prius c shares some platform features with the Yaris and rides and handles much the same as most compact cars. The Prius c has a pretty solid ride, only seeming bouncy on bad roads. It’s relatively flat in corners because the weight from the battery positioning gives it a low center of gravity for predictable handling. The brake pedal triggers regeneration while the drivetrain uses the car’s momentum to recharge the battery pack. Whines: No model offers adjustable height shoulder belt anchors and tall passengers end up with the belt across their upper arm. Bottom Line: Strengths of the Prius c are the best mileage of anything without a plug, good maneuverability, electronics for the tech-savvy, and relatively low pricing for an eco-friendly hybrid. With moderate purchase and operating costs, it’s an ideal urban vehicle.
2013 Infiniti G37 Coupe: sporty, stylish, and luxurious
Serving Kitsap County for 30 years
6 engines are among the finest on the market. The current 330-horsepower 3.7-liter engine is an extension of the vaunted 3.5-liter V-6. This engine series is a cornerstone of the company’s powerplant program. Precision smoothness and broad power bands are hallmarks. The one in our test G27 coupe was rated at 270 lb-ft of torque. Our G37 was the G37xS model, which means it had allwheel-drive and the Sport Package. The transmission was the excellent 7-speed automatic, which has manual shift paddles located behind the thick, contoured leather steering wheel. The paddle shifters are an excellent compromise over the 6-speed manual transmission. They let you be aggressive when desired with the luxury of the automatic in congested traffic. The 7-speed automatic helps fuel economy, which is fine for a sports car, but short of economy car numbers. The EPA rates the AWD G37 at 18 city and 25 highway. We got a little over 26 mpg on three 200-mile, nonstop highway trips. Fuel economy numbers dropped into the low twenties in mixed driving. Behind The Wheel: We put about 800 miles on the G37 in a week. A round trip to Portland and another weekend excursion to Mount Rainier meant extended periods behind the wheel. The time was very enjoyable (except for the now too common I-5 traffic jams). The G37 is an excellent car for covering long distances in comfort and security. An excellent sound system and satellite radio helped pass the time. The 7inch information/navigation screen was easy to read and use. Nineteen-inch alloy wheels and Yokohama P225/45R19 tires were part of the $1,950 Sport Package. The package also includes a limited slip differential, sporttuned suspension, and sport brakes. The Sport Package when combined with allwheel-drive provides a level of handling performance that exceeds most opportunities to fully appreciate it. As great as this combination is, if we were purchasing a G37 we’d be inclined to order the AWD and stick with the standard
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P225/50R18 tires. The reality of western Washington traffic is that you’re more apt to want a smoother ride than racetrack handling. The great leather seats and good insulation modulated road noise, except for notable rough stretches such as those near the Tacoma Dome and from Federal Way to Southcenter. The excellent sound system also helped a lot. Whines: Rear seat access is via power actuated (both directions) front seats.
The annoyance is the slow speed compared to a simple release and slide mechanism. Small item interior storage spaces/bins weren’t as big or plentiful as we like. Bottom Line: We were fortunate to get the 2013 Infiniti G37xS AWD coupe during a week with extensive travel needs. The miles flew by effortlessly. The G37 coupe is loaded with high performance components, but it was the luxury touring features that sold us.
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By Bruce Caldwell The 2013 Infiniti G37 coupe is a sports car for people who desire performance and fun without attracting unnecessary attention. The G37 coupe (especially with the all-wheel-drive on our tester) has the wherewithal to stay with most competitors, but it’s more likely to fly under the radar than flashier cars. That stealthy nature suits many low-key Pacific Northwest natives — success and substance without being ostentatious. Walkaround: The 2013 Infiniti G37 coupe is a very handsome vehicle. It has smooth, contemporary lines, but not the overly busy scoops/spoilers/strakes/etc. found on many Asian performance cars. The less aggressive, more refined look is in keeping with the overall sport/luxury demeanor of the G37. Attractive, multispoke alloy wheels barely conceal the massive 4-piston front and 2-piston rear disc brakes. The Infiniti G37 is definitely a sports car, but it favors refinement over raucousness. Interior: A high-quality interior is expected of Nissan’s luxury Infiniti brand and we weren’t disappointed. Our test car was fitted with beautiful Stone (a very light gray) leather and correspondingly light carpeting. We drove the G37 during a record dry spell, but the “not for the Northwest” carpet quickly displayed dirt. The Stone leather made the slightly snug interior seem bigger, but some Weather Tech floor mats would be a wise addition. The coupe’s sleek styling limits interior space and although the G37 is considered a four-passenger car, it’s really a two-andchange configuration. Front seat legroom is stretch-out spacious and headroom is fine even with the power sunroof. Back seat legroom is almost nonexistent. I squeezed myself into the back seat just to see if it was possible, but I had to slouch so much that the front seat was almost to the dashboard. Rear seat ingress/egress is quite good. The big doors open very wide and the front seats go far forward. The problem is the lack of room once you get in. The best use of the back seat is as a catchall for coats and miscellany. The seat is soft leather like the front ones, but we doubt it will see much passenger use. The seat folds flat, which greatly expands the overall cargo capacity. The trunk also has a flat floor although it isn’t very deep. Under the hood: Nissan and Infiniti V-
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36 • Kitsap Peninsula Business Journal • KPBJ.com October 2012
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The Kitsap Peninsula Business Journal is a special interest publication dedicated exclusively to providing news, information and opinions to the business communities of the Kitsap and Key Peninsulas, and North Mason County. It is published monthly by Wet Apple Media. Copyright, 2012, with all rights reserved. Postage is paid at Tacoma, WA. The Kitsap Peninsula Business Journal is read by more than 26,000 business, professional, political and military leaders in Kitsap, Pierce, and Mason counties. Additional copies are available for $1.50 each. Annual subscriptions are available for $25. Reproduction or use of any editorial or graphic content contained herein in any manner whatsoever without the expressed written consent of the Publisher is strictly prohibited. The Kitsap Peninsula Business Journal is proudly composed using Apple Macintosh® computers and printed by The Kitsap Sun, Bremerton, WA. Views expressed herein are strictly the opinions of the authors and do not necessarily reflect those of the advertisers or ownership of The Kitsap Peninsula Business Journal.
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Prosperity Partnership 2.0 — ready to go By John Powers Get your Sharpies out — circle Nov. 5, 2012 — and plan on joining a host of Kitsap business and community leaders who will be meeting peers from throughout the Central Puget Sound Region at the Prosperity Partnership’s Annual Fall Luncheon at the Seattle Westin. This year’s event is particularly relevant to Kitsap’s role in our regional economy. U.S. Rep. Norm Dicks will be honored for his 44 years of public service in our region — a legacy of service that led the charge in securing Naval Base Kitsap’s critical role in insuring our national security while strengthening our local economy. And, our recently adopted Regional Economic Strategy (RES) for the Central Puget Sound Economic Development District will be officially launched, providing a dynamic new platform from which to continue to collaboratively build our regional and local economy. This RES is tailored to leverage Kitsap’s recognized strengths in the defense and maritime industries; and, the Prosperity Partnership 2.0 Plan contains competitive strategies that will enhance Kitsap’s emerging opportunities in the fast-growing aerospace, advanced manufacturing and information technology sectors. Kitsap leaders have been instrumental in crafting this next-generation regional economic development plan. Kitsap County Commissioners Josh Brown and Charlotte Garrido; Poulsbo Mayor Becky Erickson and Councilman Ed Stern; Port
of Bremerton Commissioners Roger Zabinski, Larry Stokes and Axel Strakeljahn; Bremerton Mayor Patty Lent and Councilwoman Carol Arends; Bainbridge Island Councilman Steve Bonkowski; Suquamish Tribe Chairman Leonard Forsman and Port Madison Enterprises CEO Russell Steele, led an active delegation of Kitsap leaders, both public and private, that worked hard to make sure Kitsap’s needs were well served in the strategic regional planning process. As a result, we are now well positioned to fully leverage this new fiveyear Regional Economic Development Strategy by marshaling our local socialpolitical capital, financial capital and human capital to play an ever more important role in an ever-evolving globally competitive, innovative regional economy — Central Puget Sound Economy. Pound for pound, on a per capita basis, Kitsap County competes and contributes in large measure to the success and vitality of our region. Nine of the region’s 14 economic clusters are present and growing in Kitsap County (defense, maritime, advanced manufacturing, clean technologies, health care, business services, information communication technologies, tourism, and specialty foods). Kitsap is home to the secondlargest industrial complex in the Pacific Northwest (PSNS-IMF) where each and every day over 20,000 people build and rebuild our nation’s modern naval fleet. Kitsap has the densest per capita concentration of defense output and engineering talent in the region – a region known for its defense and engineering talent.
In comparison to the combined numbers of the other counties in the Central Puget Sound Region (Snohomish, King and Pierce), Kitsap enjoys above regional average education attainment, employment rates and household income. And, when it comes to innovation, Kitsap ranks only second to King County in the state of Washington in the development and registration of intellectual property (patents, copyrights and trademarks); and, Kitsap is home to several of the fastest-growing technology companies in the state. When you cap this case off with Kitsap offering what is arguably the highest quality of life, and most sustainable environment in the region (a region known globally for its quality of life and leadership in sustainability policies and practices) set in 393 square miles of a heavily forested peninsula and island, surrounded by 254 miles of scenic salt water shoreline, framed by towering majestic mountains (all within 10 nautical miles of a 24/7 global center of trade and commerce), we have got what it takes to pursue and attain a bright economic future for citizens throughout Kitsap County for generations to come. So come join us for lunch on Nov. 5 at the Seattle Westin to honor Norm; and take a closer look at the composition of our world-renowned regional economy and the critical role Kitsap plays in the Central Puget Sound’s economic future. You can read more about the Regional Economic Strategy and register for the luncheon online at: www.ProsperityPartnership.org. See you on the 5th – On Kitsap! • John Powers is executive director of Kitsap Economic Development Alliance.
members; 8.5 million people were volunteering; and 32.8 million people made donations. In 1970 the United Way name was formally adopted and the vast majority of Community Chests and United Good Neighbors all became known as United Way. In 1977 United Way fundraising growth across the country exceeded $100 million for the first time. In 1981 the United Way organizations across the country raised $1.68 million. In 2007 United Ways raised over $4 billion and became the nation’s largest charitable organization. Here in Kitsap County, United Way had its largest campaign, raising $1.86 million, and then the great recession hit. This year, 2012, United Way of America — now United Way Worldwide — is 125 years old and United Way of Kitsap County celebrates 75 years of service. Since the recession began, United Way of Kitsap County has slipped behind that 2007 high-dollar mark due to work shortages and tough economic times. The
recession may have ended in 2009 but it doesn’t feel like it. We must begin rebuilding the community campaign in order to increase our ability to help those who have suffered and are stilling suffering so very much through these past four years. If United Way is to have impact in our community it is up to us, you, me and our neighbors to provide the means. Government is not the answer; we as a collective hold the solution. We must and we need to depend upon our ability to help each other as Denver did in 1887 and Bremerton did in 1937; as you might expect me to say, the best way to do that is through United Way’s consolidated annual campaign. I hold out hope that the community will answer the call. And should we be fortunate enough to once again in 2012-13 reach that $1.8 million high mark, I will sit in the middle of the intersection of Fourth and Pacific in downtown Bremerton and have my head shaved until it shines in celebration of a victorious campaign that will surely have great impact in our community. Will you help? • David L. Foote is executive director of United Way of Kitsap County.
is largely revenue-neutral for the states. The measure has already passed the House with bipartisan support. On Sept. 12,nearly 200 business leaders wrote Senate Majority Leader Harry Reid, DNev., and the rest of the Senate leadership urging them to pass the legislation.
This bill is a simple fix to a complicated problem that preserves revenue for the states while saving money for employers. The Senate should pass it quickly and send it to the president for his signature. • Don Brunell is president of the Association of Washington Business.
Rebuilding United Way’s community campaign By David L. Foote In 1887, a Denver woman, a priest, two ministers and a rabbi recognized the need for cooperative action to address their city’s welfare problems. Frances Wisehart Jacobs, the Rev. Myron W. Reed, Dean H. Martyn Hart, Msgr. William J. O’Ryan and Rabbi William S. Friedman put their heads together to plan the first united campaign for 10 health and welfare agencies. They created an organization to serve as an agent to collect funds for local charities, to coordinate relief services, counsel and refer clients to cooperating agencies, and make emergency assistance grants in cases which could not be referred. That year, Denver raised $21,700 and created a movement that would spread throughout the country to become the modern United Way. Now, 125 years later, United Way is still focused on mobilizing the caring
power of communities and making a difference in people’s lives. Fast forward 50 years to 1937 and find that a group of caring citizens in Bremerton created the first cooperative action here for the purpose of addressing the needs of their city. That organization was called the Bremerton Community Fund. That year they raised $12,630.63. During the war years the fund was referred to as the Community War Chest. In 1947 the Bremerton Community Fund became the Kitsap County Community Chest. By 1948 more than 1,000 communities nationwide had established Community Chest (United Way) organizations. In 1954, Kitsap County Community Chest became known as United Good Neighbors and established the first unified federated campaign for Kitsap County. By 1967 United Way campaigns across the country raised more than $700 million dollars despite work shortages (similar to today) and civil unrest. United Way helped 27.5 million families; 31,300 agencies were
Solving a taxation nightmare According to The Council On State Taxation, because the information must be tracked and collected manually, employers with workers who travel frequently would need to add two or three employees just to comply with the law, adding $150,000 or more to the budget. Imagine if you had to deal with something similar. Imagine that your property tax isn’t based on your house as a whole, but calculated at a different rate for each room. The tax rate for your kitchen is different than for your living room, etc. In order to pay the appropriate amount, you must keep a log of how much time you utilize each room and calculate your tax based on the time and tax rate for each room. Now imagine you have a spouse and four kids. To figure out your tax liability, you must keep track of how much time each of them spent in each room in your house and use that data to calculate your total property tax. Impossible? That’s how many business owners feel. Fortunately, there’s a solution. It’s called the Mobile Workforce State Income Tax Simplification Act. This complicatedsounding legislation greatly simplifies the task of tracking and withholding state income taxes for traveling employees. The bill would establish a uniform national requirement that nonresidents must work in a state for more than 30 days during a calendar year before they’re subject to out-of-state income taxes. The bill defines what a work day is and, to prevent double taxation, it clarifies that employees can get a tax credit in their home state for income taxes paid to other states. Analysts have determined that the measure
October 2012 Kitsap Peninsula Business Journal • KPBJ.com 37
By Don C. Brunell, Association of Washington Business Have you ever traveled to another state for your job, perhaps to attend a business meeting or a conference? Most people have. But few people realize that they may owe income taxes in that other state. In all, 41 states levy a tax on the income earned by nonresident employees during their time in the state, even if they’re just attending a conference. Each state calculates its tax differently — 24 states levy the tax from the very first day, while 17 others, including Oregon, Idaho and California, set thresholds of how long the nonresident employee can work before the tax liability is triggered. Needless to say, this is an administrative nightmare for employers, particularly those with multiple locations or employees who travel frequently. It is the employer’s responsibility to calculate and withhold the taxes from their employees’ paychecks, and it’s the employee’s responsibility to file income tax returns in states that require it. Complying with those obligations is complicated, costly and confusing, particularly for medium and small employers. Each state has different tax rates, tax triggers and varying notions of what constitutes income and how to define a work day. Calculating each traveling employee’s tax burden must be done by hand, because payroll systems are not built to allow withholding in multiple locations during the pay period. Cross checking travel vouchers can’t be done automatically either, because travel reimbursements and payroll are two separate systems. Because of the difficulties involved, most employers are not in compliance.
What will it take for Romney to win?
38 • Kitsap Peninsula Business Journal • KPBJ.com October 2012
As we go to press, Election Day 2012 is a mere five weeks away. And don’t confuse this with the usual hyperbole that always surrounds presidential elections — this is the most important election of our lifetime. What’s at stake is the American way of life. It’s the America we’ve always known and loved, versus the America Barack Obama wants to create. If that doesn’t scare you, either you aren’t paying attention, or you’re a KoolAid drinker. The Democrats have defined the debate utilizing their tried and true, pathetic class warfare strategy. The problem is, it always works. They’ve successfully pitted us against each other by painting Mitt Romney as a mega-rich guy who got that way screwing people out of their jobs by sending them off-shore, and who is completely out of touch with average Americans and their struggle to survive in this economy. Meanwhile, they blame the economy on George W. Bush, claiming Obama inherited this mess, neglecting to mention they’ve controlled the economy for the past six years — the last two years of the Bush presidency, and throughout Obama’s. The corrupt Lamestream Media conveniently gives Obama a free pass on the economy, and on abusing the Executive Order to circumvent the Constitution — something he has no moral qualms about doing. He apparently believes the end justifies the means to accomplish his agenda of turning us into a Socialist state, where the rewards of hard work and risktaking are confiscation of the fruits of your
labors in the name of “spreading the wealth.” The media also fails to point out Obama has run up the highest debt in history — more than all the other presidents combined. Or that unemployment is the highest since the Great Depression, and has held steady his entire term; the federal bureaucracy has ballooned in size; and because of his policies, things aren’t going to LARY COPPOLA even begin to The Last Word get better until he leaves office. Is Mitt Romney my first choice for president? No. Frankly, the first time I saw New Jersey Governor Chris Christie on television, shortly after he was elected, my immediate reaction was, “There’s the guy America needs — a straight talking, no BS guy who isn’t afraid to stand up to anyone.” I’d pair him up with Florida Senator Marco Rubio, a young, smart, highly charismatic Hispanic who is also a true leader. I don’t see Christie — or Romney — bowing down and apologizing to our sworn enemies like Obama has. I don’t see Christie caving in to rabid environmentalists over drilling for oil on our soil, coal-fired power, or global warming. I do see him standing up to government unions the way Reagan did, and how he himself stared them down in New Jersey. I also see him renewing ties with Israel, who Obama has abandoned in
favor of kissing the ass of our collective enemies. The chaotic way Romney’s campaign is being managed — given Obama’s performance as the worst president since Jimmy Carter — should be like shooting fish in a barrel. To be honest, until Obama, I used to think W was the worst president since Carter, but no longer. To quote James Carville, the campaign advisor who helped Bill Clinton get elected, “It’s the economy, stupid.” Romney and the Republicans need to embrace that, grow a pair, and stand up to the Democrats, who have perpetrated huge lies about the Republican economic platform without even a whimper from them. Romney has yet to refute the standard Democratic claim that “deregulation” is why the housing market collapsed, bringing down the economy. According to the Democrats, Republicans who want to restore the free enterprise system just want to “…go back to the same policies that got us into this mess in the first place.” It all sounds very persuasive — if you don’t know the facts — and is pure BS if you do. However, facts don’t speak for themselves, and while Romney avoids challenging the Democrats on this, the clock is ticking. The “deregulation strategy” isn’t new. It worked in California, when over-regulation forced electric utilities to charge less than their generation costs, leading to power failures and blackouts. The Democrats blamed “deregulation” then, too. Democrats claim Republicans will sacrifice the poor in favor of “tax cuts for the
rich.” This is another “Big Lie” that Romney needs to explain why — in plain English — is totally false. If he doesn’t, he’ll guarantee losing the election because people are scared, and they’ll believe it, unless he explains the truth. Romney wasn’t the Tea Party or conservatives’ choice, nor has he reached out to them. It’s time he did. They’re united against Obama, and they’ll show up at the polls, vote, work the phones, put out yard signs and do the boots on the ground work every campaign requires — if Romney just asks. Significantly more of the country is Conservative and/or Moderate than Liberal. He needs to forget about courting or offending Liberals — they won’t vote for him anyway. Americans are watching our nation lose its status as a superpower because our President believes America is the problem in today’s world. The Middle East is in flames, yet Obama didn’t have time to meet Benjamin Netanyahu when he came to the UN because of more important obligations — like appearing on Letterman. Romney should have met Netanyahu at the airport when he landed. The contrast would have been stunning — Romney the Leader versus Obama the entertainer. Romney should be running away with this election — even with the Lamestream Media acting as Obama’s official press office. He’s proven he’s an excellent manager, but Americans don’t want a good manager, they want a bold leader. Being a bold leader means articulating bold ideas and convincing people to believe in them. Be bold Mitt — time is running out.
No medical benefit from marijuana? How about a cancer cure? Too bad this epically nasty presidential campaign, swamped by a toxic tsunami of super PAC cash, has been dominating news coverage for weeks. Believe it or not, there have been more significant and interesting revelations of late than Romney's secretly recorded remarks dissing 47 percent of the population in the country where he believes he should be president. So take a breather from obsessing over whether a dangerous socialist or an out-oftouch elitist will prevail in November. For a few moments turn your musings to other consequential matters: Will replacement refs be the ruination of the NFL? Has science found that marijuana could be a cure for cancer? Anyone who watched the SeahawksPackers game probably has an answer to the first question. The second is even more intriguing, and a definitive answer may be years away, though there have been some encouraging developments reported recently. These involve cannabinoids — a fun
word to say aloud — which are chemical compounds found in marijuana. The most familiar of these is tetrahydrocannabinol (THC), the psychoactive ingredient that provides the high. It’s been known for a long time that THC and other cannabinoids can effectively treat symptoms of cancer sufferers and chemotherapy TIM KELLY patients, such as nausea, pain, loss of Editor’s View appetite and fatigue. But what scientists have proven in laboratory experiments and testing on animals the last few years is that cannabinoids also can kill cancer cells and stop the spread of aggressive types of the disease — cancer of the breast, brain, prostate, colon or lungs. The way cannabinoids work, simply put, is by blocking or deactivating a gene called ID-1 that spreads cancer. One compound that’s been found to be especially effective doing this is called cannabidiol, or CBD.
Sean McCallister, a scientist at Pacific Medical Center in San Francisco, wrote in a summary of his research that laboratory tests show “CBD inhibits human breast cancer cell proliferation and invasion,” and that in tests on mice, “treatment with CBD significantly reduces primary tumor mass.” Also, CBD (which unlike THC is nonpsychoactive) and other cannabinoids are non-toxic, which greatly reduces the risk of harmful effects from their use. That’s extremely important. For example, an article on The Daily Beast website reporting on findings of Spanish scientists and Harvard researchers about THC’s anti-cancer properties notes that “THC selectively targets and destroys tumor cells while leaving healthy cells unscathed. Conventional chemotherapy drugs, by contrast, are highly toxic; they indiscriminately damage the brain and body.” McCallister’s research team also has found promising results studying how CBD used in combination with conventional chemo treatment can enhance those drugs’ effect and counteract some of their toxicity. It’s taken years of research to reach the
point that scientists — always a cautious lot — who regard CBD as a potential major breakthrough in cancer treatment are ready to begin clinical tests on human patients. But McCallister is quoted in The Daily Beast article: “Cannabidiol offers hope of a non-toxic therapy that could treat aggressive forms of cancer without any of the painful side effects of chemotherapy.” The article concludes by observing that “the discovery that cannabinoids have antitumoral properties is increasingly recognized as a seminal advancement in cancer therapeutics.” Now, that all sounds like wonderful news — but keep in mind that our federal government still insists marijuana has no medicinal benefits. The force for changing that ridiculous outdated view — as is the case on other social issues such as same-sex marriage — will have to come from states like Washington that pass progressive initiatives challenging and defying the ossified federal law. • Tim Kelly is editor of the Kitsap Peninsula Business Journal.
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