Kitsap Peninsula Business Journal 25/12

December 2012 Vol. 25 No. 12

The Voice of Kitsap Business since 1988

Local holiday shopping, pg 14

REI coming to Silverdale, pg 6

Inside Special Reports:

Climbing to the next level Poulsbo company builds success in ladder safety equipment niche

By Rodika Tollefson Phil Lanzafame is like many typical entrepreneurs: He believes that in order to win in business, a person has to take risks.

And like many others who start small companies in their home basement or garage, he took the risks he felt would help him build a successful business.

But unlike many small-business owners who are compelled to give up after too many trials and tribulations spread them too thin, Lanzafame kept going.

Executive Gift Giving, pp 8-13 Tax Planning, pp 26-29 People, pg 2 Human Resources, pg 16 Real Estate, pp 23-25 Environment, pg 30 Technology, pg 31 Automotive, pp 34, 35 Editorial, pp 36-38 Home Builders Newsletter, pp 19-22

“For quite some time, I felt like the water was up to my neck,” he says. “If my business would have failed, we would have had to sell our house.”

His Poulsbo-based business, Levelok Corp. (levelok.com), is now 17 years old and not only is the water no longer up to his neck, he feels like the business is out of the woods. Four years ago, the company became debt-free, a major milestone — and Lanzafame says they can now look forward Levelok, page 4

Cuppa Bella owners Marcus and Tonya Croman

A sweet spot for helping

By Tim Kelly, Editor A year removed from a double whammy that left him busted up, unemployed, and his family temporarily homeless, Marcus Croman is all smiles as he sits down at a table inside Cuppa Bella, the coffee shop and bakery he and his wife operate in Kingston.

When they bought the business in September 2010, using their savings, Croman wasn’t planning to change careers and spend his days there wearing a white baker’s apron. But now that the former computer systems specialist has become a self-taught baker by necessity, he’s Cuppa Bella, page 32

One Call for All hires new executive director A Bainbridge Island nonprofit fundraising group, One Call for All, has selected Allyson Brown as the new executive director.

Brown has served previously in a variety of Allyson Brown leadership roles at IslandWood, most recently leading their conference and community programs, and

she has volunteered for a wide range of nonprofits on Bainbridge Island. She has experience in the private sector as well, including her work leading the cold beverage business for Starbucks Coffee Co. One Call for All is entering its 52nd year of the “Red Envelope” campaign – an annual tradition that includes a call to give to every Bainbridge Island household.

“I am thrilled to jump in and begin at One Call for All at this exciting time for the

organization. Last year we raised more than $1 million for the community – our hope is to again reach this meaningful milestone,” Brown said. “Equally as important as the total dollars raised, this is a chance for every family to give. Each donation makes a difference — no gift is too small, and the more families that give, the better we all are.”

One Call for All is an umbrella organization providing needed funding to more than 85 island and regional nonprofits.

The group’s annual fundraising campaign begins in October and ends on Dec. 31, although contributions are welcome throughout the year. A unique Bainbridge Island tradition, 100 percent of the money donated to One Call for All goes directly to the nonprofits designated by the donors.

Read Allyson Brown’s bio on the One Call for All website at www.onecallforall.org.

Kitsap Co. dispatch center employees receive state, national awards Kitsap County Central Communications (CENCOM) had two employees receive top honors from the Association of PublicSafety Communications Officials (APCO), the world’s largest organization of public safety communications officials. Donna Kelly was named Telecommunicator of the Year, while Ken Sala was honored as the state’s top Communications Information Technician for 2012.

Kelly has worked at CENCOM for 14 years, and serves as a primary call receiver as well as handling staff training duties.

Sala, who has worked for CENCOM for six years, is responsible for the design, repair, installation and maintenance of all electronic systems. He also conducts monthly training sessions with other employees.

CENCOM is responsible for answering all 9-1-1 and non-emergency calls for police, fire, emergency medical, and animal control services in the county.

2 • Kitsap Peninsula Business Journal • KPBJ.com December 2012

Kitsap Credit Union trio earn company recognition Kitsap Credit Union recently recognized three employees — Belinda Red, Tim Ensley and Reinard Lee — for exemplifying Credit Union values in building quality relationships, providing valuable financial assistance and empowering people to achieve more.

KCU’s On the Spot award winners are peer-nominated and receive a certificate of appreciation as well as paid time off.

Kitsap Credit Union (kitsapcu.org) is a not-for-profit financial cooperative serving membership of over 90,000 from 20 local branch offices.

Hospice of Kitsap County names new executive director Hospice of Kitsap County has named Corrigan Gommenginger as the organization’s new executive director.

He replaces Ann Taylor, who has served as interim executive director Corrigan Gommenginger since March.

Gommenginger brings a wide range of nonprofit management and business administration experience to the job. Most recently he managed his own accounting and operations management firm working with small businesses and nonprofit organizations.

Weedin inducted into Consultant Hall of Fame Dan Weedin of Poulsbo, a Seattle-area insurance consultant, executive coach and speaker, was inducted into the Million Dollar Consultant™ Hall of Fame on Nov. 13. He was one of five consultants in diverse disciplines to be awarded this honor.

Alan Weiss, Ph.D. announced the honors during his annual Mentor Summit in San Francisco. Weiss is the author of “Million Dollar Consulting” and more than 40 other books in the field of consulting, coaching and speaking. He conducts a global mentoring program for Dan Weedin consultants.

Criteria for induction in this elite group include: • Serving as an exemplar to others in the profession.

• Manifesting the highest levels of integrity, ethics, and accountability.

• Achieving significant annual revenue and profit improvement.

• Contributing intellectual capital to the consulting profession.

• Engaging in continuing, challenging, personal and professional development.

• Taking prudent risk and demonstrating resilience.

"Dan Weedin exemplifies our Hall of Fame through his generous sharing, community support, business growth, and high integrity,” Weiss said. “He is constantly asking, 'How can I help my clients improve?' trusting that that will always provide positive rewards for him, as well."

Weedin is an expert in crisis leadership and insurance, and helps his clients to maximize their ability to respond and thrive out of crisis. He also coaches and mentors individual consultants and insurance professionals to help them achieve greater success in their careers.

For more information, contact Weedin at (360) 271-1592 or dan@danweedin.com.

Kitsap Bank recognizes Employee of the Quarter Wendy White was named Kitsap Bank’s Employee of the Quarter for the third quarter in 2012.

White is a vault teller at the Point Fosdick branch in Gig Harbor, Wendy White and has worked for Kitsap Bank since 2004.

Her peers and customers nominated her for the award because of her outstanding customer service and willingness to go above and beyond her duties on a daily basis.

Ogard named president of National Advisory Council for Safeco

Poulsbo pet services business Swimspaw welcomes Alice Boyce, a statelicensed Small Animal Massage Therapist, to its staff.

Boyce has been taking classes through Northwest School of Animal Massage since 2006. She is studying to become a licensed veterinary technician and worked as a veterinary assistant for three years, developing an interest in long-term management of chronic diseases, surgery and preventive care.

SwimSpaw offers warm-water swim and massage therapy for dogs. The service helps older dogs with arthritis, dogs after orthopedic surgery, those with tendon and muscles injuries, dogs with neurological issues, and performance dogs who need to crosstrain in a nonweight-bearing environment.

Denton named manager of Union Bank Poulsbo branch Kathy Denton has been named manager of Union Bank’s Poulsbo branch at 19950 Seventh Ave. NE. She is responsible for supporting the bank’s existing customer base and developing new relationships with consumers and small businesses.

Denton most recently served as manager of Bank of America’s Silverdale Town Center Branch. She began her career in 1977 as a teller and has also served as a personal banker over the years.

“Kathy brings more than three decades of banking experience to Union Bank,” said Ron Heller, Union Bank’s senior vice president and regional manager. “With her strong ties to the community and extensive customer service and banking background, we are confident that she will continue to serve the financial needs of our customers in Poulsbo.”

Fascinating Women is the theme for the annual Holiday Gala hosted by the Alliance of Women Owned Businesses in Gig Harbor. This event, which replaces the December meeting for AWOB, celebrates dedicated, passionate women entrepreneurs that connect, engage and enrich each other.

The complimentary event is open to all women entrepreneurs, their business partners, colleagues and those that support women business owners. It will be held from 5-7:30 p.m. on Dec. 12 at the estate of Jim and Marlyn Jensen, 6409 Rosedale St NW in Gig Harbor.

Hors d’oeuvres, wine, sparkling cider and sweets will be served.

In keeping with this year’s theme, members and guests are encouraged to wear Fascinators — vintage-inspired, newly in vogue hair adornments made famous recently by the Duchess of Cambridge, Kate Middleton — and holiday attire. There will be a variety of prize categories for creative and fabulous fascinators and new memberships. Live music will be provided by Rokkerbox.

This event is an opportunity to meet members and learn more about the AWOB community. Membership benefits and offerings will be expanding in 2013, with AWOB developing an interactive membership website, a private member-only Facebook group, a newsletter featuring members and business tidbits, and expanding opportunities to offer goods and services to fellow members.

Please RSVP on Facebook, Meetup or awobtickets@gmail.com. Call Jill Neumeister with questions at 360-277-0555, or find information online at allianceofwomenownedbusinesses.com.

15th ANNUAL

2013 Economic Forecast — Decision Makers Breakfast — Keynote Speaker: John Mitchell, PhD Date: Tuesday, January 29th, 2013 Time: 7:30 a.m. to 10:00 a.m.

Place: Kitsap Conference Center

Register online at kitsapeda.org

Sponsorship Opportunities Available! $50 .......KEDA Investor Partners $75 .......Non Investor Partners $450 .....Table of 10/KEDA Investor Partners $650 .....Table of 10/Non KEDA Investor Partners

Contact Theresa Mangrum; mangrum@kitsapeda.org

www.kitsapeda.org • 360-377-9499

December 2012 Kitsap Peninsula Business Journal • KPBJ.com 3

Jeff Ogard, vice president of personal lines at EHL Insurance in Poulsbo, has been named president of the Safeco Insurance National Advisory Council effective Jan. 1.

The National Advisory Council is a collaborative, agent-driven forum that strengthens communication, enhances the customer experience and improves business results for both agents and Safeco Insurance.

Ogard was the council’s vice president in 2012 and has earned Certified Insurance Counselor (CIC) and Chartered Property and Casualty Underwriter (CPCU) designations.

Safeco has been using advisory councils for more than 10 years to collaborate with agents on solutions that will improve the agent and customer experience.

Approximately 140 agents sit on eight regional councils, all managed by agents.

The national council includes the president and vice president from each of the company’s regional councils across the country. Officers are elected by their peers.

EHL has three full-service agencies located in Poulsbo, Sequim and Port Angeles.

Pet services business adds massage therapist for small animals

AWOB holiday gala’s theme is Fascinating Women

LEVELOK

4 • Kitsap Peninsula Business Journal • KPBJ.com December 2012

from page 1 to calculated growth.

The company was born out of an idea for a ladder safety product. Lanzafame, who had a background in construction and a degree in architecture, had a difficult time finding a ladder leveler that he liked. “I thought the equipment was lacking on the market. There was a lot of room for improvement,” he says.

So he patented his own, and soon became very motivated to see it in the hands of contractors and utility crew workers. At the suggestion of a business adviser, Lanzafame decided to partner with ladder companies and utilities — if those companies could endorse his ladder-

leveling system, he would be in business.

“She said a lot of people emulate what utilities are doing,” Lanzafame recalls and adds with a smile, “I don’t think I even knew what emulate meant.”

Lanzafame traveled all over the country to show his products to any utility representatives who would meet with him, from telecoms to cable providers to power companies. “I was getting excellent reaction,” he says.

His Seattle-based distributor sold as many as he could make — and Lanzafame was literally assembling the systems by hand, working on them late at night after his young daughters were in bed. During the day, he was still working odd jobs to support the family, making sales calls in between.

Coming Next Issue...

By 2000, Lanzafame was ready to make the leap into mass-manufacturing.

“I spent close to a year to find a U.S. manufacturer at a competitive price. I fell flat on my face. I was exhausted, I tried so hard,” he says. “I would have to sell accessories for almost as much as the ladder if I made them in the U.S.” He notes that the factory he uses in China has an exceptional quality record, and his own products have a return rate of less than 1 percent.

Both Levelok’s patented permanentmount leveler/stabilizer system and the patented Keylok “Quick Connect Leveling” system can be enabled with the touch of a toe. Each leg extends in small increments so the system can be used on uneven surfaces, and an automatic backup safety lock prevents the locking mechanism from accidental slipping or tripping.

The ladder standout brackets, another popular accessory with professionals (and also sold retail), can be attached to most ladders that have open rungs. The brackets are designed to both prevent slips (Lanzafame notes that a lot of falls happen during gutter cleaning) and protect gutters or windows.

Although most of the Levelok products are manufactured in China, Lanzafame continues to look for ways to source locally.

All product development including prototype creation is local, and one of the company’s products, safety straps, are made in Seattle. The company has an office and a small warehouse in Poulsbo.

Since his modest beginnings in 1997, Lanzafame has steadily added to his company’s products. In addition to the ladder leveling kits (both “quick-connect” and permanent style), Levelok manufactures items such as ladder dollies, ladder stabilizers and nonconductive umbrellas (made without any metal). The company has more than 5,000 dealers around the country, and some of the products are also sold to retail consumers through stores such as Home Depot and Amazon.com.

“We’re not just concentrating on ladder accessories. The primary aspect of any product we make is going to be ultimate safety,” he says.

That’s also one of the aspects that make his job rewarding, “knowing how the products we develop and manufacture are actually reducing the number of injuries people may have otherwise experienced without our equipment,” he says. “This one thing really helps to keep pushing me forward each day.”

Levelok’s patented ladder-leveling device stabilizes a ladder on an uneven surface.

Lanzafame says he’s overcome a lot of hurdles, but it was largely with help from family and friends. His wife, Peggy, helps run the business; the couple’s daughters help out regularly and Peggy’s father, Jim Harney (a retired North Kitsap High School counselor and coach), is the vice president. Lanzafame also gives credit to his previous engineer, Steve Morgenstern, who died recently from lung cancer.

“His engineering expertise, patience and attention to detail helped us immensely when designing and refining the original products before taking them to market. A good measure of any success we have achieved since our founding can surely be attributed to Steve,” he says.

These days, it’s competitors that end up emulating Levelok. With the company now so successful in the market, Lanzafame says others are trying to come up with similar products. Which is why he is constantly improving and inventing, whether it’s making small tweaks or adding brand new products.

“It’s important to stay ahead of the game because we want to be the leaders,” he says.

“You have to be truly innovative — you can’t sit back and sell the same-old.”

He is also not becoming complacent, despite his company’s international success.

While he feels more comfortable now with the idea of not working 12-14 hours a day, the family still doesn’t take vacations, save for a few days here and there.

“The hard work is worth it,” he says.

“But it’s a double-edged sword because there are times you question yourself and you know you’re walking on thin ice. Being able to push through a lot of the hurdles … is rewarding, but I couldn’t have done it without the help. Nobody becomes successful by themselves.”

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Dec. 13th

Harrison supervisor honored as March of Dimes Nurse of the Year Patty Cochrell, a nursing supervisor at Harrison Medical Center, was recognized as the Distinguished Nurse of the Year by the March of Dimes Washington Chapter at its 10th annual Western Washington Nurse of the Year Awards event.

The Distinguished Nurse of the Year Award is presented to RNs who have demonstrated Patty Cochrell leadership and expertise throughout their career in the areas of patient care, community service and advocacy.

“Patty is an exceptional nursing leader with great vision and broad regional influence, and this recognition exemplifies her passion for nursing and her significant, genuine contributions to our patients and community,” said Scott Bosch, Harrison’s president and CEO. Cochrell, RN, is Senior Vice President of Quality, Operations and Chief Nursing Officer for Harrison, and was one of four nurses from the hospital nominated among the 13 categories awarded at the event, which was held Nov. 15 in Bellevue.

Consultant creates buzz about branding

By Tim Kelly, Editor How does “Bodacious Bay Street” sound as a tourism slogan for Port Orchard?

Maybe Bremerton could roll with “High Tides, High Times” now that marijuana’s going to be legal for recreational use.

During his manic multimedia presentation on the importance of branding in transforming a community into a desirable destination, consultant Roger Brooks said a catchy slogan for a tourism campaign should concisely convey the town’s touchstone, the singular attraction it is best known for.

So wait ... maybe Port Orchard’s best bet

would be “Extreme Macomber”?

Brooks, whose work for Seattle-based Destination Development International has taken him across the U.S. and Canada, emphasized that effective branding takes much more than a slogan.

He shared a list of comical tourism slogans that cities have adopted, such as Climax, Minn. — “More than just a feeling.”

“A brand is a perception; it’s what people think of you,” Brooks said during his Nov. 26 presentation at SeeFilm Cinema in Bremerton.

He also told the crowd of 150 or so

elected officials, business owners and others interested in boosting tourism in Bremerton and Port Orchard that “a brand is also a promise.” Communities must deliver on their brand’s promise, he stressed, by providing an experience that visitors won’t find anyplace else.

Communities won’t set themselves apart from other destinations with bland “something for everyone” marketing pitches.

“Jettison the generic!” is his branding mantra.

Branding, page 7

Diabetes Foundation recognizes Kitsap Bank president’s contributions

December 2012 Kitsap Peninsula Business Journal • KPBJ.com 5

The South Sound Chapter of the Juvenile Diabetes Research Foundation (JDRF) recently presented Tony George, president and CEO of Port Orchard-based Kitsap Bank, with the inaugural Living & Giving award at an event held at the Tacoma Yacht Club. The award is given to an individual, family or company who Tony George has made a significant contribution toward JDRF’s mission to treat, prevent and find a cure for Type 1 Diabetes.

George has led a Kitsap Bank team that has raised nearly $200,000 for JDRF. He has twice served as the Walk to Cure Diabetes corporate chair and served a number of years as a South Sound Branch board member, and is currently the team captain for the Kitsap Bank Corporate Walk Team. His drive to help find a cure for diabetes originates from his family’s close relationship with a family whose daughter was diagnosed with Type 1 Diabetes at an early age.

“It is our pleasure to recognize Tony for his efforts by presenting him with this award.

Tony’s long-standing commitment to helping JDRF find a cure for Type 1 Diabetes is inspirational,” said Emma Conway, JDRF South Sound Branch manager, “It’s Tony, and supporters like him, who give hope to the individuals and families impacted by this disease.”

REI store in Silverdale seen as a boost for Kitsap tourism

By Tim Kelly, Editor Outdoor sports enthusiasts can find a Kitsap Peninsula Water Trails Map at the REI flagship store in Seattle.

Next fall, outdoors folks will find an REI store on the Kitsap Peninsula.

Producing that colorful trails brochure and getting it displayed in such a popular retail location were key pieces in the Kitsap Peninsula Visitors and Convention Bureau’s campaign to draw kayakers, standup paddleboarders, hikers and cyclists to explore “the natural side of Puget Sound.”

So REI’s decision to open a store in Silverdale is seen as a major enhancement of the region’s tourism promotion efforts.

“This is such a big step for our local tourism

industry,” said Patty Graf-Hoke, executive director of the Kitsap Peninsula Visitors and Convention Bureau. “It shows that we have the potential to be a major adventure sports and ecotourism destination.”

That’s echoed by Kevin Golic, REI’s retail director for the Washington and Alaska district.

“There’s just a ton of really fun things to do and places to go over there,” he said. “A lot of folks fly into Seattle and head over to Kitsap and the Olympics for their vacation.”

REI will be moving into the building that Kitsap Sports has occupied since 1987, just north of the Kitsap Mall on Myrhe Place NW. The owners of Kitsap Sports

A new REI store will open next fall the Silverdale building where Kitsap Sports has operated since 1987.

Kitsap Sports will move to a smaller location in Bremerton in early 2013.

Tim Kelly photo

6 • Kitsap Peninsula Business Journal • KPBJ.com December 2012

have said they will relocate their business in early 2013 to a smaller property they own on Callow Avenue in Bremerton.

The Silverdale property was purchased by local investment firm Sound West Group, which will lease it to REI after removing part of the building’s east side to create more parking area. The current building is about 32,000 square feet and it will be reduced to 24,500.

“This was just fortuitous that REI came in when they did,” said Wes Anderson, one of the principals in Sound West Group, which had been working with Kitsap Sports for more than a year to find a buyer or tenant for the building.

The full-line REI store — which will hire about 50 employees — will offer gear and apparel for camping, climbing, cycling, fitness, hiking, paddling, snow sports and travel. A seasonal rental department will allow customers to test new outdoor activities, and a bike shop will provide assembly and repairs.

Seattle-based REI is a membership cooperative, although no membership is required to shop there like at a business such as Costco. According to REI, it has about 4.7 million members who pay a onetime $20 fee and receive a share in REI’s

“This is such a big step for our local tourism industry. It shows that we have the potential to be a major adventure sports and ecotourism destination.”

— Patty Graf-Hoke, Kitsap Peninsula Visitor & Convention Bureau profits through an annual member refund.

Membership also includes discounts on gear rentals, REI Adventures trips and REI Outdoor School classes.

There are more than 15,000 Kitsap residents who are REI members, and the company has been looking for a suitable store location on the peninsula for several years.

“We have a large membership base over there that we’ve really kind of underserved for awhile,” Golic said. “We feel we can do a much better job taking care of our customers over there with a store near where they live.”

Even someone for whom REI will be a business rival thinks the company’s expansion into Kitsap will be a boon for the REI, page 7

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BRANDING

from page 5 It’s ineffective, he said, to tout activities like shopping, dining, golfing, boating and outdoor recreation, because most people have access to all that close to home, especially if they live in the Puget Sound area.

Brooks showed video clips from “The Daily Show” and “National Lampoon’s Vacation” to humorously reinforce his lesson on branding. Chevy Chase, in his indelible role as doofus dad Clark Griswold, nailed it: “If everything were like home, there would be no reason for leaving home.”

Shopping, dining, entertainment and local historic sites are “complementary

activities” that visitors will do in your town, he said — if the town has that something special to make it worthwhile for people to travel there.

And that primary appeal has to be an experience, not geography or scenery or small-town charm — generic notions that won’t grab anyone’s attention.

“You have to narrow your focus,” Brooks said. “Find what sets you apart.”

One of the most successful examples he cited is Devon, Alberta. The town near the fast-growing Edmonton metro area created the brand of “Bike Town” and promotes its extensive cycling trails with the slogan “Grab life by the handlebars.”

The second component of Brooks’

presentation was “20 Ingredients of an Outstanding Destination.” He showed slides and video of what Rapid City, S.D., achieved by converting a parking lot next to a vacant former Sears store into a vibrant central plaza that spurred downtown revitalization.

Such central spaces — offering everything from farmers markets to live entertainment and outdoor movies, to sidewalk dining and an outdoor skating rink in winter — are a common component in thriving downtown areas, Brooks said.

Whether he knew one was planned in Port Orchard or not, Brooks encouraged development of a public market along the lines of what may be built in a long-vacant Bay Street building next spring.

He drew applause when he addressed the parking issue, observing that “two-hour parking can kill a downtown quicker than anything.” And don’t roll up the sidewalks; adhere to the 10/10/10 Rule: Within a threeblock area, a downtown should have 10 places that sell food, 10 “destination retail shops,” and 10 places that are open after 6 p.m.

Other highlights on the 20-item list he raced through include attractive “wayfinding” signs; well-designed gateways that lead visitors into a downtown district; and public restrooms that are easy to find.

Brooks also said cities and local businesses should support marketing efforts done by the Kitsap Peninsula Visitor & Convention Bureau on behalf of the entire region.

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from page 6 region’s tourism industry.

“Absolutely, they’re a competitor,” said John Kuntz, owner of Olympic Outdoor Center, which has waterfront rental operations in Port Gamble, Poulsbo and Bainbridge Island. But he said his longestablished business will hold its own, and even stands to benefit from REI drawing more visitors to Kitsap and investing in trail development and other projects.

“I think it’s going to benefit the whole community in a lot of ways,” said Kuntz, who’s on the board of the Kitsap Peninsula Visitors and Convention Bureau, as well as the North Kitsap Trails Association.

“They’ll expand adventure sports in the county … and they’ll be a big magnet for bringing people in and getting them started in sports.”

Golic said all REI stores offer outdoor school programs, with in-store clinics and classes. The classes often tie in with trips to go hiking, mountain biking, snowshoeing and paddling, although Golic said it will likely take some time for REI to secure permits for trips to new destinations on the Kitsap Peninsula.

“We like to get more folks engaged in the outdoors, and we also want to protect places and enhance outdoor opportunities,” Golic said, noting REI’s donations to the North Kitsap Trails Association and the Great Peninsula Conservancy.

Kuntz agreed with Graf-Hoke’s assessment that REI’s expansion validates the tourism strategy they’ve worked on together since the VCB adopted the slogan “the natural side of Puget Sound” in 2009.

He hopes continuing promotion will bring more outdoor events to Kitsap, and that the new outfitter coming to the community will be involved.

“One thing in particular I’d love to talk to REI about is Paddle Kitsap, and maybe have them be a sponsor,” Kuntz said, referring to the two-day, Port Gamble-toPoulsbo trip that Olympic Outdoor Center has staged since 2008. “I think their outreach would bring a lot of people from out of the area to do this wonderful paddle right here in Kitsap County.”

Graf-Hoke said she’s “really thrilled” to have REI moving to Kitsap. “I think it’s going to help continue to attract the kind of tourists we’re looking for.”

Santa’s little helper dreams big for cool gifts

8 • Kitsap Peninsula Business Journal • KPBJ.com December 2012

By Jim Kendall What? Already? Holy Smoke and It’s that time of year again! It must be time to dust off the ol’ ornaments and find some new ones, and update that list of who is naughty and who is nice.

Electronic Gadgets and Other Fun Stuff Wireless speakers. Bluetooth wireless speakers. Really good Bluetooth wireless speakers.

Really-good-I-just-love-’em wireless speakers. Bose Soundlink wireless speakers. No they are not new. But boy-ohboy are they ever handy, and the sound is quite good quality. When I get tired of listening to the same old blather from the Sports Talk stations, and the oldies but goodies are older than dirt and not very good the second time around either, I fire up the ol’ smart phone, hit my play list of choice and blast it out of the Bose. Not just convenient, the speaker is mobile as well.

Not much bigger than a couple of (large) paperback books, the speaker has real heft, decent range (distance from source), and excellent sound quality and volume. They are not cheap but you get what you pay for.

(I have found them for as much as $50 below MSRP, but you have to look around.) http://www.pcmag.com/article2/0,2817,2 393483,00.asp Speaking of smart phones, as the market matures, apps are multiplying like mold on old cheese. Some are pretty cheesy (sorry), while some are sublime, to go along with ridiculous.

From medical apps for doctors, nurses and

pharmacists, to video games, to streaming media (radio, TV, video), the list seems endless. http://www.pcworld.com/article/161614/10 1_freebies_phones.html 3D or not to 3D? As with technologies of the past (VCR anyone?), 3D video technology is maturing and becoming affordable for the consumer.

Quality of the product is improving, variety is increasing, and the technical side of the 3D phenomena is showing dramatic improvements. What has not yet caught up is the availability of actual 3D videos (movies). More titles are beginning to appear, especially action videos (sci-fi and otherwise) that seem to amp up frenetic action. So, is it time to buy? You have to decide if you are going to be early in the VHS vs Beta type action, although the standard for 3D now seems fairly well set.

“Passive” goggles/glasses are required to gain the 3D affect, just as in the movie houses, but the goggles that are available are far sturdier, as you would expect.

Prices have dropped dramatically in the past few months, as the availability has increased just as dramatically. (Gee, do you think the two are tied together somehow?

Duh!). I am personally waiting a little longer but I am a cautious critter. Well. In some things, I am cautious. I would not think ill of you if you were to decide that waiting any longer just means that much longer you will not be able to enjoy the experience. Hmm. 3D Super Bowl anyone?

NAHHH. I think.

32-inch Vizio for $300? 47-inch Vizio for $600? LG 47-inch for a bit more than $800 with six pair of 3D glasses? Yup. 3D for the average Joe (or Josephine) with maybe some change left over to buy those 3D movies.

(Oops. Gotta have a 3D DVD player too!) http://www.amazon.com/s/ref=nb_sb_no ss_1?url=search-alias%3Daps&fieldkeywords=3D TV

Things that make noise! Lots of noise!

Largest production motorcycle? So claims Triumph , with their Rocket III, 2.3-liter engine, two-wheeled growler. If my metric converter is correct, the Harley 110-cubicinch CVO engine converts to approximately 1.8-liter displacement. The Triumph boasts 146 hp of beastly giddy-up for a comparatively cheap $15,000-plus. No, I am not giving up my Harley. But boy oh boy does that ever look like an adrenalin pumper! http://www.triumphmotorcycles.com/moto rcycles/range/cruisers/rocket/2013/rocketIII-roadster

Gunpowder tech pushes the envelope.

Some very impressive firearms are coming on the market for home and away. One of the most innovative producers is Kel-Tec CNC Inc. Kel-Tec has been designing and building unique models that make the gun-tech-nerd drool. “Bull pup” rifles have been on the scene for several years, but the Kel-Tec RFB takes it a step further. RFB; Rifle, Forward Ejecting, Bullpup, comes in .308 caliber and is frankly a lot of fun to shoot. And since it is forward ejecting, it is ambidextrous. Lefties can shoot it without fear of a face full of hot brass. http://www.keltecweapons.com/ourguns/rifles/rfb/ Kel-Tec has an even newer offering using a similar platform — a bullpup 12 gauge pump shotgun that carries as many as 14 shot shells in two magazines and one “up the pipe”! Perfect for home defense or for out and killing those pesky “clay pigeons,” the KSG is a solid machine and a ton of fun. http://www.keltecweapons.com/ourguns/shotguns/ksg/ Not a gun person? That’s ok. If you close one eye and squint real hard out of the other, it kinda looks like an oboe. Sorta. Squint again.

Rub some onion in your eye. There! See? For the squeamish, we revert to the pregunpowder projectile throwers. One of the oldest and cheapest and most fun rock throwers known to mankind is… the humble sling!

“The sling may be an ancient weapon, but there are some powerful reasons for including it in any modern arsenal. It is silent and has multiple uses. It is powerful and has better range than a bow. It is accurate and easy to learn to use. It is easily improvised and highly portable. It can be readily concealed. Ammunition is available anywhere for free and it is inexpensive, and takes up little room.”

I attest that it is true, and I had a lot of fun and spent many hours “slinging” with my home-made slings made from leather bootlaces and scraps of leather scrounged from who-knows-where when I was a young lad in high school. I actually became fairly proficient and could hurtle a palm-sized stone a good 150 yards. And ammo is cheap! Clearly this is a stocking stuffer for the outdoors types.

Oh. If while you are practicing you hear glass breaking and a lot of cussing? Run for the hills! http://www.amazon.com/gp/product/1893 626172/ref=dp_bookdescription?ie=UTF8 &n=283155 So is any of this something for Santa to bring down the chimney? It is if you have a really big chimney and a very accommodating Santa, which I do!

Happy flinging and Merry Christmas to all!

Businesses get into holiday spirit to give back October, employees and customers collect handmade knitted, crocheted or sewn hats and scarves that are then distributed to homeless people in communities where Pacific Fabrics stores are located.

Spirit, page 12 A few hundred Thanksgiving Day diners came to Moondogs Too on Bay Street in Port Orchard for a free community holiday meal.

Courtesy photo

December 2012 Kitsap Peninsula Business Journal • KPBJ.com 9

By Rodika Tollefson For the past nine years, hundreds of runners have been making the trek to Gig Harbor on Thanksgiving — not to partake in a turkey feast but to run off some energy in the Turkey Trot. The race, which expected to draw as many as 2,000 people this year, is a fundraiser for the local food bank as well as several other comm unity efforts.

More than 6,000 cans of food have been donated the past eight years to Gig Harbor’s FISH, just in time for the December holidays.

And another $40,000 has been raised for FISH, college scholarships for high school students, playground projects and other causes.

The event was the brainchild of Dr. Timothy Holmes of Holmes Chiropractic.

He and his wife, Heidi, started out with 15 people the firs t year — a number that grew to 1,700 in 2011. Holmes involves his entire staff as well as patients, who help run the event. The best part, he says, is not only seeing the number of people who know the importance of being healthy, but also “seeing the generosity of a wonderful community.”

Holmes Chiropractic is one of many local businesses that have found creative ways to get into the holiday spirit to give back. Some of the businesses participate in existing efforts such as holiday giving trees, others come up with their own fun, hands-on ideas, and just like Holmes, many reach out to other businesses and the community to pitch in.

For popular Port Orchard restaurant and bar MoonDogs, Too, Thanksgiving and Christmas would ordinarily be among the slowest days of the year. Except that for the past six years, the restaurant has opened its doors during the two holidays for community dinners. As many as 300 people stop by to share a meal at MoonDogs, which is served by volunteers and prepared by staff.

The meals were $1 per person in previous years, but MoonDogs owner Darryl Baldwin decided to make them free this year. He has partnered with the Taking it to the Streets ministry to help with preparations, and has re cruited the help of several other businesses — Minder Meats provides the turkeys, Valley Produce of Bremerton the produce, and Morningside Bakery the dinner rolls; Food Services of America offers the rest of the food at cost. The dinners have become so popular for volunteers that people regularly get turned down for help, and many helpers come year after year.

“People are really committed to helping the community,” Baldwin says.

The idea started with staff members and resonated with his philosophy that “no one should be alone at Thanksgiving or Christmas” and since then, the dinners have become an annual tradition for some families.

“The best thing is that when you’re here, helping people out, it makes you feel good that you’re contributing and giving back,” Baldwin says.

Pacific Fabrics also taps into the larger community for its annual project called Warm for Winter, a hat and scarf drive hosted at all of its stores including Bremerton. Throughout

The gift of kindness helps food banks fill basic needs Number of people seeking assistance is still increasing, even amid signs of economic recovery “season” was off to a slow start, with contributions just starting to trickle in around the first week of November, a month or more later than usual.

Jan Coen, director of FISH food bank in Gig Harbor, says she is seeing around 30 new clients every month.

“These are people who are newly experiencing difficulties,” she says, adding that many of them are seniors. “Prices are up too and money is not stretching as far as before for people,” she says.

The Salvation Army is also expecting a big increase in the number of holiday food baskets this year.

“We’re seeing a lot more people coming

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in the door saying, ‘I can’t believe I’m here,’” says social services director Sheryl Piercy.

She says she is encouraged by the community response. “I’m in awe of the generosity of our community. It’s heart-warming,” she says.

Giving the gift of kindness is one of the most rewarding holiday traditions. To get you started, we’ve rounded up a list of local food banks and their main needs for the Christmas season. All food banks welcome donations after the holiday cutoff dates, to be used for their ongoing food programs.

South Kitsap Helpline will provide food baskets to more than 1,000 families.

Needed items include cranberry sauce, canned vegetables and fruits and stuffing. A special fresh produce drive on Dec. 17-18 will be collecting apples, carrots, celery, oranges, etc. A toy and gift drive also collects gifts for children 16 and under as part of a “giving tree” program. Drop off gift donations at 1012 Mitchell Ave. in Port Orchard by Dec. 19 and holiday food by Dec. 21; call (360) 876-4089 for details.

Central Kitsap Food Bank will give more than 500 food baskets to families, and needs things like cash donations as well as the usual holiday trimmings such as canned vegetables and fruits, olives, tomato sauces, stuffing, flour, sugar, turkeys — plus basic hygiene items such as shampoo and soaps.

Gifts for clients are welcome. Drop off items at 3790 NW Anderson Hill Road in Silverdale by Dec. 20 for holiday distribution, but anything that comes in after that is welcome. Call (360) 692-9818.

The Bremerton Foodline expects to have about 800 families signed up for holiday food baskets. High-demand items

include canned yams and fresh apples; needs include items like fresh eggs, coffee, flour and sugar. Gifts for a Santa’s toy shop are in great demand, as are volunteers to help with the food baskets. Drop off holiday donations by Dec. 15 at 1600 12th St. in

Photo courtesy Red Cross

Brendon Bottle, Americorps team member from the American Red Cross, collects donations at the East Bremerton Grocery Outlet.

Bremerton; call (360) 479-6188 for details.

The Gig Harbor/Key Peninsula FISH Food Bank will serve food baskets for about 250 Gig Harbor families and give out toys and gifts to more than 400 kids. The main need is for basic foods such as canned meats, cereals, vegetables and stuffing. For the Santa shop gifts (for kids up to age 17), ideas include basics like scarves, hoodies Food Banks, page 12

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By Rodika Tollefson If the economy is showing signs of improvement, one wouldn’t know it by talking to the local food banks. All are reporting a continued increase in demand this year, including from people who are finding themselves in need of assistance for the first time.

“We are not seeing the economy turning around. It seems like if the economy is improving, food banks should see less need, and that is not the case,” says Hoyt Burrows, executive director for Central Kitsap Food Bank.

The CKFB served a record number of families last year in August — 721 — but this year, that number went up even more, to 764.

On the other hand, Hoyt said the donation

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Communitywide effort aims to ‘Send Hunger Packing’ Although Smith has been helping with a food drive at Harrison for more than 30 years, he said doing it as part of Send Hunger Packing has bigger impact. “It’s a big program, and the awareness is growing,” he said. “We hope the word keeps getting out.”

And the word is getting out, indeed.

John Heidt, general manager of Bremerton Anthony’s, said he heard about it through his Rotary Club this year and decided to get his staff involved.

Fairfield Inn & Suites is another firstyear participant. General manager Michelle

Tomlinson said she has been looking for various ways for employees to give back, including fundraisers for local groups. “I’m trying to get my team more involved actively in the community,” she said. She was planning on adding a few challenges to get them energized in the food drive.

“We all know there are a lot of people right now struggling financially and with homelessness,” she said.

McKay Bevers of Red Cross said by working together through the informal partnership, the seven sponsors — the other four are KPS Health Plans, Kitsap

Sun, United Moving and Storage, and Puget Sound Energy — are able to tap into each other’s strengths and resources for a bigger outreach.

“At Red Cross, while we didn’t have the financial resources to pull off a food drive, we had the people,” she said. ““Every partner plays their own role. … The thing that has impressed me the most with this partnership is that every single partner has jumped right on board.”

For more information about the project, go to www.kitsapcu.org/Site/Promotions/ HungerPacking.aspx.

December 2012 Kitsap Peninsula Business Journal • KPBJ.com 11

By Rodika Tollefson Visitors to Harrison Medical Center campuses, Kitsap Credit Union branches and various other businesses throughout Kitsap County may be familiar with the sight of boxes filled with canned goods and other food, or the logo for Send Hunger Packing. A communitywide effort now in its sixth year, Send Hunger Packing is a collaborative project among seven local forprofit and nonprofit organizations that gets the community involved in giving a helping hand to area food banks. Many local businesses serve as drop-off locations for the public, while others contribute financially or sponsor food drives among employees.

“The idea behind Send Hunger Packing is to make it real easy for any business to participate. Our goal is to get as many businesses and organizations to participate as possible, and make it as easy for them as possible,” said American Red Cross West Sound director Karen McKay Bevers, cocoordinator of the program.

Each of the seven major partners (including Red Cross) provides a different type of support, whether it’s money to run the program, promotional materials, boxes or volunteers. The donations are distributed through the Kitsap Food Bank Coalition, whose members include food banks from Kitsap and North Mason. A total of more than 30,000 pounds of nonperishable food has been collected just the past two years, not counting the cash donations.

Some supporters get creative in trying to drum up participation. Kitsap Credit Union, one of the partners, does a competition among teams every year. The marketing department, which provides promotional support for Send Hunger Packing, treats the winning team to a homemade lunch based on a theme. This year’s theme is “Glee,” and teams have the option to collect extra points by participating in activities such as trivia and displaying their high school yearbook photos.

“We do goofy things to keep people motivated and talking to their friends and family about the program,” said Leah Olson, vice president of marketing.

Although the lunch menu for the grand prize hasn’t been determined yet, Olson said, “There will be some singing involved.

It’s not just lunch — it’s an experience.”

In the past, the food was collected throughout November but this year, the organizers are giving participants the choice to continue as late as January. Volunteers from the collection sites also have the choice of either delivering to Bremerton Food Line, which serves as the central distribution point, or to the coalition food bank member closest to them. For example, Harrison Medical Center, one of the seven partners, has its staff deliver the donations to the food banks closest to each of its collection points.

“So far, we’re at about 500 pounds total.

Everyone is just getting into the swing of it,” Leon Smith, Harrison security manager and Send Hunger Packing coordinator, said in midNovember. Last year, Harrison’s total was around 4,000 pounds of food not counting cash, and Smith said several departments challenge each other in friendly competitions.

Three local food banks receive a big boost

By Rodika Tollefson While getting ready to send some cheer to their client families during the holiday season, three local food banks received a boost of their own: South Kitsap Helpline, Gig Harbor’s FISH and the Key Peninsula Community Services.

FISH and KPCS were the recipients of a surprise contribution from the estate of Karen Bednarczyk, a Port Orchard resident who died recently after a battle with cancer.

She left $375,000 to three charities (the third was Peninsula Spay and Pet Neuter).

FISH Director Jan Coen said the surprise donation will help the food bank pay for its financial assistance requests as well as supplement the food bank and other programs.

The money was placed into an investment fund that is attached to a checking account.

“When we need to buy something, we won’t be second-guessing where to get the money,” she said, adding that if the money were to be used just for the financial assistance program, it would be enough to support it for an entire year. FISH has received bequests before but this one, which amounted to about $125,000, was the largest in the food bank’s history.

“She had a real purpose for where she wanted the money to go and make a difference,” Coen said of Bednarczyk,

whose mother is a FISH volunteer.

Key Peninsula Community Services will also be investing the money so it would provide regular returns. “We are looking for options that are low-risk, as well as an endowment fund,” said executive director Penny Gazabat. “We want it to have a longterm effect and to make sure the gift that was given to us is put to the best possible use.”

South Kitsap Helpline received a $20,000

grant from the Scripps Foundation (Scripps is the owner of the Kitsap Sun newspaper).

Helpline applied for the grant to help convert the antiquated oil boiler in its Port Orchard greenhouse to natural gas. The switch will both allow for plants to be grown year-round and save money on energy, according to executive director Jennifer Hardison.

Helpline purchased the greenhouse in 2010 after the previous owner, Port

Orchard Nursery, closed. “The heating and cooling system has been a big headache for us. Oil is costly, and it broke down constantly too,” Hardison said.

In November, work was being done on getting the pipes installed and Hardison hoped the natural gas system would be operational in early January.

“It’s very exciting,” she said. “It will make a huge difference for us.”

FOOD BANKS

canned cranberries, chicken broth, pies, stuffing and other staples. Toys for all ages are wanted for the holiday toy shop, and gifts for teens are especially in short supply, including board games, sports items and gift certificates. The organization also offers an “adopt-a-family” program that allows people to provide a holiday meal and gifts for a family. Cut-off dates are Dec. 14 for holiday food and Dec. 11 for toys. Drop off donations at 18916 Third Ave. in Poulsbo; call (360) 779-4191 for details.

Helpline House on Bainbridge Island will provide a holiday “shop” for children ages infant through 12. In addition to cash donations, unwrapped presents are wanted; the Helpline expects to distribute gifts to about 150 kids. Drop off gift items by Dec. 10. Call (206) 842-7621 for details or bring donations to 282 Knechtel Way. North Mason Food Bank will give away as many as 200 baskets and needs turkeys, cranberry sauce and other usual holiday items such as pies and stuffing. Gifts for all ages are being collected. Drop off unwrapped gifts and food/cash donations

by Dec. 24 at 22471 State Route 3 in Belfair, or call (360) 275-4615 for information.

The Salvation Army in Bremerton expects to give food baskets to more than 400 families this year, along with toys and clothing for the holiday, and has Angel Trees around local businesses for those who can sponsor a family. Food donations and $20-$25 gift certificates to department stores are welcome, along with cash, practical items like socks and toiletries, and

food such as pancake mix, butter, eggs, JellO, turkey and trimmings, onions and potatoes. For toys, simple items such as art supplies, dolls and cars are suggested. Drop off toys by Dec. 14 and holiday food by Dec. 13; call (360) 479-2695 for details.

The food banks have expressed their appreciation of the continuous support from the entire community.

“We are extremely thankful and appreciative of the generosity of the people in our community,” Hoyt says. “All the donations is what makes it go.”

Other easy ways to contribute to the food banks include the communitywide effort called Send Hunger Packing (see related story) and through the Kitsap Sun’s annual Bellringer campaign. Now in its 91st year, Bellringer is expected to bring in about $100,000 in donations from newspaper readers, with every penny directed to the nine food banks that are part of the Kitsap Food Bank Coalition.

United Way of Kitsap County funds various needs for its partner agencies, and the food banks are also among them. United Way has its annual fund drive this time of year but also works with businesses yearround to accommodate their schedules.

A major focus currently is on helping the homeless. “Right now there’s not a place for families to go for shelter and that’s something we need to work on,” says Carl Borg, director of resource development.

Borg says the number of donors has declined because of layoffs and the tight

from page 10 and gloves as well as sports items and gift certificates. Drop off holiday food donations by Dec. 17 and toys before Dec. 12 at 4425 Burnham Drive in Gig Harbor; call (253) 858-6179 for information.

The Key Peninsula Food Bank only does Thanksgiving baskets but holiday items are included when available with regular food pickups in December. The food bank helps about 300 families a month, with many more people served through a Bread Closet program. The food bank is located at 17015 Ninth St. Court KPN in Lakebay; call (253) 884-4440.

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Choices nearly unlimited for personalized photo gifts

By Rodika Tollefson If you’re one of those people who dread the idea of going on a Christmas shopping scavenger hunt, trying to come up with yet another original gift idea for Aunt Betty or Grandma Muggs, think no further than your own family. Personalized photo gifts are as fun to give as they are to receive, and thanks to technology, these days photos can go on just about anything, from jewelry to blankets.

For the do-it-yourselfer, stores that sell scrapbooking supplies usually offer things like blank calendars, clock faces and other items that can be decorated scrapbook-style. But if you’re not the type who enjoys playing with

glitter or cutting and pasting doodads for hours on end, you can opt for the easy route and take your photos to a specialty printer.

Catie Malcom, owner of Catie’s Creations, says the photo possibilities are almost unlimited. “We can put a photo pretty much on anything, depending on the photo size,” she says. The list ranges from the usual coffee mugs and T-shirts to pillow cases, ceramic tiles, earrings, cutting boards and even “dog tags.” Stockings and ornaments are also popular at Christmas, and the mugs are classic best-sellers.

“The photo mugs are very popular because people like to add chocolate or

coffees,” she says. “The nice thing about photo mugs is that we can totally customize them with names or text.” Some companies will order the same design for employees, for example, and personalize the names, and since each change is a simple word, they can get a discounted bulk rate.

Malcom says it takes about 48 hours to make these photo gifts but more time is always recommended during the holiday rush (her shop moved to a new Old Town Silverdale location in December, on Lowell Street). The gifts can be as inexpensive as $10, all the way up to almost $100 for photo blankets.

SPIRIT

The themes vary each year — this year’s is “What warms your heart and feeds the soul” — and three judges select the winners of the barrel-decorating contest. Other contests are organized throughout the duration of the food drive, complete with prizes.

Other Kitsap Bank branches participate in different projects during the holidays, collecting food, toys and gifts for their individual communities. Childs says this kind of involvement is part of the organization’s year-round philosophy of not only sponsoring various community organizations but also encouraging employees to be active.

“To us, being the community’s bank and the community’s partner go hand in hand; it’s part of our culture,” she says.

It’s also part of the culture at Watson, Poulsbo’s eco-friendly furniture maker. Kara Quesada, marketing coordinator, says the philosophy among employees is that they are fortunate to work there and “it feels like a privilege to give back.” As one example, as part of the annual food drive, many employees donate part of their profit-sharing checks they receive about the same time.

Last year, employees collected more than 400 pounds of food and nearly $700 in cash for the North Kitsap Fishline food bank.

The food drive was moved from December to January this year to help the

food bank fill the post-holiday gap, and comes on the heels of another holiday project —sponsoring presents for Kitsap Community Resources’ Angel Tree.

Employees received 72 tags this year to shop for “three wants and three needs” for 12 kids.

“If response is immediate and overwhelming, we’d go back for more tags,” Quesada says.

“Employee participation is high and wellbalanced throughout the organization.”

Angel Trees are a popular way for many businesses to get involved during the holidays, including Harrison Medical Center. Wendy Halfhill, who has coordinated the program at Harrison for 10 years, says last year 14 truckloads of gifts were delivered to KCR. The giving trees are displayed at both Silverdale and Bremerton hospitals as well as in the support services building this year, and Harrison has 250 tags for collecting gifts for the KCR Secret Santa shop — which allows parents to “shop” for gifts for their children.

“By giving to the Santa shop, we’re able to reach a lot more children,” Halfhill says.

She says employees like to participate in the Angel Tree because they know they can make a bigger impact as a group. “It’s the satisfaction to be able to do something like that at Christmas and help a lot of kids,” she says. “It’s a benefit for our community.”

FOOD BANKS

from page 12 economy. “The need is still going up, that’s for sure,” he says, adding that United Way is the only nationwide agency “that can guarantee the money you give in Kitsap County will stay in Kitsap County.”

Some often-forgotten categories at Christmas include pets and seniors, and organizations such as Humane Society and Faith in Action of West Sound have special programs to bring cheer to those they serve.

Other ideas include Kitsap Community Resources, which has the annual Angel Trees, and Red Cross, which has various disaster-preparedness kits that make practical gifts and help pay for programs.

The Red Cross is also sponsoring a Holiday Mail for Heroes program that sends holiday cards to armed forces members and their families (see redcross.org/holidaymail).

December 2012 Kitsap Peninsula Business Journal • KPBJ.com 13

from page 9 This year, Bremerton staff and patrons collected more than 500 items, up from last year, and all stores donated more than 2,400 total.

“The idea is for customers to contribute to their own community,” says Annette Millard, marketing manager for Pacific Fabrics, which is based in Puget Sound.

Local knitting enthusiasts also have another way to contribute to local adults and children in need, thanks to the annual Knitting Tree that decorates the lobby of Kitsap Bank in Port Orchard. The bank coordinates the project with Soroptimists of Port Orchard, and employees as well as members of the community knit or purchase sweaters, hats, baby blankets, scarves, gloves and other items. The donations are given to organizations such as Kitsap Community Resources, Head Start, Helpline and Park Vista Retirement Community.

Bremerton-area Kitsap Bank employees also get creative for the annual food collection drive, which benefits Bremerton Food Line. Each branch decorates donation barrels that are displayed in the lobby in November and December, so customers can contribute to the drive as well.

“Customers are very generous also and are often inspired to donate when they see the barrels displayed in our lobbies,” says Shannon Childs, marketing director.

Keepsake boxes are another popular item, which can be customized with masculine designs as well for the guys.

“People buy them for teens to put jewelry in them; kids buy them for mom or girlfriends for their boyfriends,” Malcom says.

The photos don’t have to be of a family member, either, and instead can be tailored to a person’s tastes by using stock images.

Keep in mind that you may not be able to use copyrighted art (such as Disney characters or someone else’s photography, for example), but the print shop has stock images to choose from. Another idea is to choose initials instead of photos, especially for smaller items like money clips.

“It can be completely customized,” Malcom says.

14 • Kitsap Peninsula Business Journal • KPBJ.com December 2012

Shopping local for the holidays can go beyond downtowns

By Tim Kelly, Editor It was Black Friday that drew throngs to big-box stores, but it's a more traditional green event that attracted a crowd to a destination off the beaten path.

At Bainbridge Gardens, the day after Thanksgiving marked the seasonal opening of the workshop where customers have come for two decades to create their own holiday wreaths. Some folks bring their own greens from home, but the nursery provides three varieties of cedar plus other fresh-cut greenery for wreath-makers to select from.

And at Olalla Valley Vineyard and Winery — a South Kitsap locale far from the Black Friday frenzy — it was the first day of Christmas at the Winery.

While downtown associations in Bainbridge Island, Gig Harbor and other communities promote Christmas shopping at local merchants, homegrown businesses away from the Main Street bustle also try to entice holiday season customers.

Visitors can enjoy free wine tastings (with a donation for Peninsula Food Bank) in Olalla Valley’s stylish and cozy tasting room proprietors Joe and Konnie Serka built.

There are also precut Christmas trees and wreaths for sale, with proceeds donated to South Kitsap Helpline. The Serkas help the food banks in both Gig Harbor and Port Orchard since their winery is midway between the towns.

And of course, there’s the wine, made in the Croatian style Joe learned from his father, an emigrant who settled with other fishermen in Gig Harbor. Olalla Valley produces several vintages, and visitors who want a gift basket can choose from Cabernet Franc, Pinot Noir, Viognier, Pinot Gris, Merlot and — if there’s some available after proper aging — a hearty red called Golubok made from grapes of Russian origin. Another specialty is fruit wines made with apples and berries grown on their land.

“Everything you drink here, we grow here,” says Joe Serka, the affable winemaker with a long ponytail as white as Santa’s beard.

This is the fourth year the couple, who both retired from telephone company jobs in 2006, has hosted Christmas at the Winery. They also have a dining room above the tasting room that can host

Prize drawings, other promotions entice holiday shoppers

Above: Bainbridge Gardens employee Tim Knapp cuts and arranges cedar and fir greenery to make a wreath in the workshop where customers can create their own wreaths during the holidays.

Left: A bottle of Croatian Family wine and a glass with the Serka family crest are displayed at Olalla Valley Vineyard and Winery.

Tim Kelly photos

catered events for up to 42 guests.

They’ve grown grapes and made wine to drink at home since the late 1980s, but the expansion to a small commercial enterprise began several years ago. Today, the Serkas have 3 acres planted with grapes and Ollala Valley Winery produces about 1,200 bottles a year.

They are open from 11 a.m. to 6 p.m.

Thursday through Sunday until Christmas, plus Dec. 27 through Jan. 2.

Chris Harui, longtime proprietor of

Bainbridge Gardens, looks forward to the groups that come in during the holidays for the shared fun of making personalized wreaths.

“It’s a good tradition,” she says. “We get booked up the day after Thanksgiving.”

Visitors can reserve two-hour slots to use the nursery’s 16 crimping machines for free, and staff demonstrate how to use them. Wreath frames are sold in a variety of shapes besides the traditional round, and customers purchase greenery, bows, ribbons and an array of decorations a la carte.

The most popular greens are three types of cedar — incense, cone and Port Orford red — but they’ve had people come in with their own greens from home, Harui says.

“People used to bring in roadkill after a big storm,” when strong winds left downed branches on the ground. “They’d come with a big bough and say ‘here’s my greens.’”

For wreath-makers and other holiday shoppers, Bainbridge Gardens also has a large gift shop that’s filled with lavish decorative displays designed by Harui’s daughter, Donna, who helps her run the business. The New Rose Café also stays open through the holidays, offering lunch, baked goods and hot drinks.

Harui and her late husband moved their family business — originally a florist shop in Winslow — to its Miller Road location on the island’s west side in 1989. She says it’s a challenge to draw holiday shoppers to a non-downtown location, especially a nursery and garden center that people may not think of as a wintertime business.

Typical of the shop local campaigns is the Passport to the Holidays organized by the Bainbridge Island Downtown Association. A purchase of $10 or more at any of the 49 participating businesses gets a shopper's passport stamped, and anyone who collects 24 stamps is entered in a drawing (on Jan. 2) to win one of four $1,200 shopping sprees, comprised of $25 gift certificates from every participating business.

"It's a great way to track where people are shopping and spending their money," Downtown Association executive director Andie Mackin says.

The Gig Harbor Historic Waterfront Association’s promotion is similarly designed to get people to shop at downtown stores, though no purchase is required for entry in a prize drawing.

Instead, businesses participating in the “Where's Santa's Cookie Plate?” scavenger hunt will hide a special Santa's cookie plate in their business throughout the Dec. 7-9 weekend of the town’s Candlelight Christmas in the Harbor. Each person who finds it receives a ticket for a drawing for a $500 holiday waterfront shopping spree.

There also will be holiday hayrides with Santa that weekend provided by Miracle Ranch, with loading in front of Timberland Bank. Businesses will be open for extended hours and offering shopping specials.

Through Dec. 24, visitors can vote for the People's Choice winner in the Deck the Harbor storefront decorating contest. Awards will be presented to the business judged to be the best in each of the following categories: • Best painted windows • Best storefront (can include doorways, foyers, courtyards) • Best window display • Best use of candlelight theme • Best representation of business The People’s Choice Award will be presented the week after Christmas.

“Some of my own friends don’t know we’re open during Christmas,” Harui says.

Valley Nursery in Poulsbo is likewise focused on staying on the radar of holiday shoppers. This is the fourth year the business will host one-hour holiday workshops for designing and making wreaths, cranberry centerpieces or a “kissing ball.” The workshops on Dec. 1 and 8 are limited to eight people and cost $35 per person, which includes all needed materials.

Local, page 15

Deluxe holiday wreaths are displayed at Valley Nursery in Poulsbo.

The nursery, which also operates a landscaping business, has a selection of handdecorated wreaths and fresh-cut Christmas trees from a local farm. There’s a small gift shop and The Coffee Spigot espresso stand as well.

Dreaney says the nursery’s main seasonal event is an after-hours holiday social from 5-8 p.m. on Dec. 7. It’s open to the public and is a good time for “visiting with friends and neighbors.”

As soon as the holidays are over, she says, “January comes and we’re already getting our stuff for spring ready.”

Tim Kelly photos

Bainbridge Gardens owner Chris Harui holds a large poinsettia in the holiday gift shop at her business.

LOCAL from page 14

December 2012 Kitsap Peninsula Business Journal • KPBJ.com 15

Kathy Lins, the shop manager and gift buyer at Valley Nursery, says their business strives to offer unique holiday ideas.

“We have to be different, that’s the whole goal,” she says.

Their business is one of the last places customers can buy pre-cut Christmas trees and get them flocked, which produces a snow-covered look. Valley Nursery also offers living trees, and Lins said they have some customers who’ve been buying one every year for long enough to have a grove of them planted at home.

One of their biggest holiday draws is a large open-air (but covered in case of rain) display of deluxe Christmas wreaths, and no two of the creations made on-site are decorated the same.

And of course, there are loads of traditional poinsettias on hand, which are still a perennial favorite even though supermarkets and other big chain stores sell them as well.

For shoppers with a rugged outdoorsman on their gift list, Valley Nursery carries Grundéns apparel and foul weather gear, which Lins notes is worn by Alaskan fishermen on the reality TV show “The Deadliest Catch.”

The nursery gift shop has lots of critterthemed ornaments and decorations (owls are a popular choice), and a holiday tree of birds.

“There’s a phenomenal amount of women who collect birds,” Lins says.

Whether it’s birds for your tree, a wreath for your door or wind chimes to hang in the garden, Valley Nursery offers a “holiday happy hour” daily from 3-5 p.m. through Dec. 23. Customers receive 25 percent off any one item.

At Bremerton City Nursery, owner Theresa Dreaney says they limit their advertising mostly to a customer e-mail list.

They also use Facebook posts to let customers know about specials such as an arrival of Jacob hellebores, a winterblooming perennial that can “come inside for the Christmas season then be planted outside.”

16 • Kitsap Peninsula Business Journal • KPBJ.com December 2012

How to manage the difficult transition when an employee demotion is needed

By Julie Tappero Do you remember the Peter Principle?

According to Wikipedia, it’s the theory that "in a hierarchy, every employee tends to rise to his level of incompetence” — meaning that employees tend to be promoted until they reach a position at which they cannot work competently.

The idea is that eventually everyone reaches the job at which they’re incompetent, and there they remain. The only work that actually gets done is performed by the employees still climbing the ladder of success.

So what do we do if we want our incompetent employees to be productive?

Really only two choices come to mind. We can terminate them and hire someone productive, or we can demote the employee back to the position where they were competent.

The question is, how do you effectively demote an employee and still have a productive, happy person working for your business? Or can you even do that?

In 2008 the Society for Human Resource Management (SHRM) did a poll of the reasons that organizations demoted employees. Seventy-one percent responded that demotions had been done for performance issues, 41 percent by employee’s request, 39 percent due to a reorganization, and 37 percent due to conduct.

There are some steps you can take to try to mitigate the potential repercussions of an employee demotion, and to soften the transition for the employee: Make a sound decision: Every situation and every person is different. Are you trying to resolve a performance issue by passing it on to another department? Is this an employee with a bad attitude that will probably only get worse with the humiliation of demotion? Or are you dealing with an employee who is now over her head, but could probably thrive with a change of supervisor or duties? Is it a conduct issue that may be resolvable by sending a strong message to the employee?

By thoroughly considering the entire

situation and everyone involved, you’ll make a better decision.

Communicate clearly: If the demotion is being made due to the employee’s conduct or failure to perform, don’t sugarcoat the situation. They need to know what your performance expectations are, and that they will be held to them in their next position. Give them the option of taking the new position, or of being terminated from the company. You do not want to force an employee into a demotion, only to find that the situation has gotten even worse. If there is a potential severance package, provide them with all of the relevant information, so they make an informed decision.

Plan a smooth transition: Consider whether there will be a reduction in salary and/or benefits. If there is, be up front about when it will go into effect, and if there will be any transition period. Will they have to train their replacement? Will they be reporting to someone who was previously their subordinate? Will they lose their office space? Inform them about your plans to communicate the changes throughout the organization, and do everything you can to make it smooth for the company and the employee.

Crush the grapevine: Employees can sniff change in the air. The gossip game will begin almost as soon as you start thinking about demoting your employee. If you’re proceeding with the demotion, you want to convey the change to the rest of the staff in a way that helps preserve the employee’s pride and right to confidentiality, while minimizing the disruption to the environment. Everyone will know if you’re being disingenuous, so put out as much honest positive information as you can, and make the changes swiftly and decisively.

Plan for an earthquake: When someone gets demoted in a company, everyone else may duck and cover. People start to worry, will they be next? For a while, you may find yourself dealing with emotions and uncertainty amongst the staff, much as you would if you had terminated your employee. Take this opportunity to coach employees on their own performance shortfalls while you quiet the concerns.

Everyone can benefit: I have seen a good employee falter when they’ve been

put into a position in which they’re set up to fail. That same employee has blossomed when moved into a more suitable position.

Sometimes, something that is a “demotion” is really just a step onto a different rung of the career ladder. By utilizing their talents and coaching them through the transition period, they’ve become a very successful contributor in their new role.

Honesty is the best policy: Be honest with yourself. Are you really dealing with a problem employee? Will the demotion just transfer the problem to a different department? Is this employee’s attitude likely just to worsen due to the change? Are you putting off the inevitable, while risking an employee who now may be motivated to retaliate against the company? If so, it’s probably time to do what’s best for the organization and dismiss rather than

demote.

There’s no doubt that successfully demoting an employee is difficult at best. It may help to retain a talented individual, but in order to do so, you’ll be required to spend a significant amount of your own time in the process.

• Julie Tappero is the president and owner of West Sound Workforce, a professional staffing and recruiting company based in Poulsbo and Gig Harbor. She can be reached at julie@westsoundworkforce.com. View her LinkedIn profile at www.linkedin.com/in/jtappero.

The recommendations and opinions provided are based on general human resource management fundamentals, practices and principles, and are not legal opinions, advice, or guaranteed outcomes.

Consult with your legal counsel when addressing legal concerns related to human resource issues and legal contracts.

Free training workshop on government contracting offered The Kitsap Economic Development Alliance will host a free training workshop on Dec. 11 for small businesses interested in expanding their business through government contracting.

Participants will benefit from the experience and insights of Greg Mowat, project labor agreement (PLA) specialist and owner of GTM Transformations. He brings a wealth of experience regarding labor relations, labor law, PLA administration, and alternative dispute resolution processes. His background includes numerous large public works projects such as implementing and monitoring the Sound Transit PLA covering all light rail and Sounder station construction.

Mowat will be joined by procurement technical assistance counselor and 30-year Navy contracting veteran Mary Jo Juarez.

This session is offered as an opportunity to become familiar with project labor agreements, conversant with basic labor relations concepts, knowledgeable regarding relationships with building trades labor organizations, an introduction to basic labor law as it may impact contractors/subcontractors signatory to a PLA, and awareness of conflict resolution concepts.

Topics include: • What is a Project Labor Agreement; a short history • Overview of related labor law • A few words about labor contract interpretation • Benefit Trust Matters • Representation and grievances The workshop will be held from 9-11 a.m. at the Kitsap Economic Development Alliance office, 4312 Kitsap Way, Suite 103, in Bremerton. Pre-registration is required, and online registration is available at http://www.washingtonptac.org.events.

This free training opportunity is funded through the Washington Procurement Technical Assistance Center (PTAC) program which helps companies find and successfully achieve contracts for work with the local, state and federal governments.

For additional details, contact Kathy Cocus at 360-377-0180 or email cocus@kitsapeda.org.

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Avoiding the Grinch: How to keep business from ruining your holidays

By Dan Weedin I’ve always thought the Grinch got a bad rap.

Here’s a guy who was determined on ruining everyone’s holiday by stealing all their gifts and decorations, believing that they would all crumble in a heap of despair and agony.

SPOILER ALERT – it didn’t work! The townspeople still rejoiced and in so doing, eventually turned the heart of the green goblin and everyone lived happily ever after.

Too bad that the same jubilant ending doesn’t always happen for us in business.

Why? Because the Grinch trying to ruin our joy is really ourselves, manifested in our

North Kitsap real estate office helps animal welfare group get more space

key people. Instead of being a tyrant by trying to wrap up the year, allow everyone around you to relax and enjoy their accomplishments. By making their life less stressful, you do the same for yourself. #5 – Say NO. You will be invited to more parties and holiday functions than you can physically attend. You must prioritize and be prepared to decline those you can’t make, regardless of who is doing the inviting. Send a thank you note with regrets, and maybe even make a charitable donation in your absence. It’s better than causing you inordinate anxiety. #6 – Promote Charitable Giving. I have a client who is arranging a “giving tree” in his retail establishment. What a rewarding experience for him, his employees, and his customers. There’s nothing like a sense of giving to improve everyone’s mental state! #7 – Back Up Everything. Nothing will spoil a good time more than losing your data.

The stress it will burden you and your employees with will be terrible. This time of year has a higher potential of technology issues due to cyber crime, weather disturbances, unexpected power outages, and just bad luck. Make sure you have good redundancy and can restore things to normal quickly in the event of a crisis. #8 – Be Healthy. Make time for eating well, exercising, and sleeping. It’s not a good time to get sick! People are depending on you at work. You’re no good to them if you’re unable to answer the bell.

#9 - Recognize that money isn’t everything. The Grinch learned that; we should, too. Many people become despondent with financial issues, both personal and professional. The reality is that we are able to be resilient and overcome.

Don’t allow that green goblin to dominate your thinking during a festive time of year.

Bottom line – Research shows that the holiday season has a heightened amount of depression and despair. It’s really counterintuitive, as this should be a time of reflection, joy, and being with the ones you love. Time and money are not resource issues, they are priority issues. Make your priorities, commit to them, be generous, and give to others. All of us have realized accomplishments in 2012. It’s time to thank people for their part in helping you, and epitomize what this season should be all about.

Thank you for reading my column every month and for all your kind words and comments. I wish you and your loved ones a very joyous, safe, and blissful holiday season.

• 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 executives improve personally, professionally, and organizationally by enhancing leadership skills.

He was inducted into the Million Dollar Consultant™ Hall of Fame in 2012. You can reach Dan at 360-697-1058; e-mail at dan@danweedin.com or visit his web site at www.DanWeedin.com.

December 2012 Kitsap Peninsula Business Journal • KPBJ.com 17

PAWS of Bainbridge Island and North Kitsap is poised for an expansion it's been considering for several years. The twophase expansion will result in hundreds more cats and dogs finding loving homes every year, and hundreds of local families getting help with their pets.

The first phase in the Room to Grow expansion campaign will be opening an Animal Welfare Center in Kingston, followed by a second phase that will upgrade the Cat Adoption Center on Bainbridge Island, moving it from Miller Road to a proposed space in Lynwood Center.

“For many years,” PAWS executive director Mark Hufford said, “we've spent far more on our programs in North Kitsap than on Bainbridge — programs including spay/neuter, veterinary financial assistance for low-income pet owners, and our whole suite of services. But because we didn't have an off-island adoption center, lots of people have thought we're exclusively a Bainbridge operation.”

The new facility in Kingston will have three times the space the organization currently has, providing room to expand cat adoptions, as well as hosting dog adoption events with other rescue groups.

“We have some additional fundraising to completely outfit the facilities, but this expansion is being made very affordable for us thanks to the generosity of Windermere Real Estate. Our Kingston facility will share the Windermere building on Lindvog Road,” Hufford said, “and we couldn't be more excited.

It's easily accessible for folks, and the building itself is both modern and immaculate.”

Carter Dotson, owner of Windermere Real Estate/West Sound, said he's proud to support the expansion. “Our Realtors are excited that we're supporting this because they're all animal lovers, too.”

For more information on PAWS programs, visit www.NorthKitsapPAWS.org.

For more information on the Room to Grow capacity-building campaign, visit www.northkitsappaws.org/capacity.html.

own business and careers.

The hard part is we are often in denial about this issue. We allow the stress and strain of money, time, family business friction, employee dilemmas, holiday parties, and unrealized goals to steal our joy during a time when we should be rejoicing.

Fear not. Here is my holiday gift to you.

My nine strategies to helping you keep business from ruining your holidays: #1 – Schedule Your Time Off…NOW. That’s right, now. As soon as you’re finished reading this column, open up your calendar and schedule time off for yourself and your family. Hold it sacrosanct. That means no bus iness will encroach on that time. This is the first because it’s the hardest to do. You must be disciplined and hold fast to this and treat yourself and your loved ones as a client. #2 – Tell the World. Be proactive and tell your employees, your clients, your prospects, and anyone else you deal with in business when you will be unavailable. Ask them to be thoughtful on getting you all priority tasks early, so you can get them done with little stress. The earlier you communicate and set boundaries, the better. #3 – Chill Out. Everyone is scrambling to hit year-end numbers. In reality, you are basically done (unless you’re in retail). The world won’t come to an end. Start preparing now for 2013. #4 – Be Nice to Your People. What a great time to show kindness and compassion to your employees, your assistants, and your

Real Carriage Door Co. grows with new products, more demand More online • To get a behind-the-scenes look at Real Carriage Door’s shop and operations, go to kpbj.com to view our feature video.

• For more information about Real Carriage Door Co., go to realcarriage.com. For details about the sliding barndoor kits or the hardware, go to realslidinghardware.com.

Real Carriage Door Co. makes all of its doors at a manufacturing facility in Gig Harbor. The doors are all made of solid wood and much of the process involves hands-on craftsmanship.

The company’s products include unique sliding-door hardware kits.

Courtesy photos

in December. “It started out with a customer asking if we had this particular hardware and finish and we said, ‘No, but that’s a great idea.’ We try to keep our ear to the ground,” she says.

The interior sliding barn-door kits, which became available earlier this fall, are made with the same high-quality materials and workmanship as the custom doors. And just like the custom doors, they pay tribute to American

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18 • Kitsap Peninsula Business Journal • KPBJ.com December 2012

By Rodika Tollefson While many homeowners have scaled down their budgets for custom home products in the past few years, one company that hasn’t been affected by the trend is Real Carriage Door Co. The familyowned business, which manufactures custom doors and hardware right in Gig Harbor, has been steadily expanding.

Not only has the company moved to a much larger space in 2007 — about 22,000 square feet — it has also added staff in the last couple of years while expanding its product line. Although the beautiful custom-made doors, made of solid wood and some more than 2 inches thick, are still a major focus, Real Carriage has grown its market niche by selling unique hardware. And recently, the company went one step further, introducing a line of non-custom, barnstyle door kits for the DIY crowd.

“We were encouraged to make these barn-door kits because customers wanted us to make more products. … People kept asking us about these (non-custom) doors and we kept turning them away,” says Moriah Rees, daughter-in-law of company founder Don Rees.

She is one of six family members involved in the business, including her husband, Scott, and her mother-in-law, Beth. The family atmosphere has permeated through the entire business but another major advantage of being a small, family-based business is the connection with customers.

“We were both involved with sales so we have a pretty good understanding of what customers want,” says Scott Rees, who is the marketing director and has been involved with the business since the beginning. “It’s really helped us to be responsive to our customers.”

As one example, Moriah points to another new product due to be launched

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history — in this case, those days when barns were an iconic image of the rural landscape. Even the VOC-free paint uses milk as a base, just as people did in the old days.

Customers can also purchase hardware kits (one of which, called Hex/Bar, won the Architectural Records’ 2011 Product of the Year), or order a preassembled door.

“It’s a totally different way of thinking about a door than we have before,” Moriah says.

“A different way of thinking about a door” perhaps also describes well how Real Carriage Door Co. got its start. Don Rees, a longtime custom-home designer, frequently made his own doors for projects. More than a decade ago, he created swing-out carriage doors that use motorized openers and the doors became so popular, Rees eventually was compelled to give up home building. But it wasn’t just the style of the doors that made them unique. Every door was custom-designed from the beginning and Rees used such old-fashioned techniques

as mortise and tenon joints. The real secret, however, is in the passion he has for wood — a passion that has been passed down to the next generation.

“We feel a real emotional connection to our doors,” Scott Rees says. “If you can pick great raw materials, you can get a beautiful product. You let the soul of the wood speak for itself.”

He says many of their customers feel the same connection, which is why Real Carriage Co. doors become showpieces for many homeowners.

“This is one of the reasons we’re successful — customers. It’s very encouraging to hear the same reasons they are buying the products are the same reasons we’re making them,” Rees says.

The couple tell the story of a new customer who bought a home but the doors were all missing because the previous homeowners took the doors with them. It’s unknown whether those doors were made by Real Carriage, but the company would like its products to be so valued. “We want our customers to love our doors so much that they take them with them,” Moriah says.

Although the company has many new ideas and unlimited product possibilities, Scott Rees says it’s important for them to make products that meet the same philosophy as the original carriage doors created by his father, who is still involved with the business full-time and continues to design.

“That’s what we’re about, creating new solutions to problems but also creating as beautiful a product as we can,” Scott says.

One way they create those beautiful products is through collaboration with local artists. The hardware used by Real Carriage Co. is made by a local blacksmith, for example, and a local woodcarver is hired when a custom door calls for a special design.

Scott says they expect to continue adding to their portfolio of unique, artisan-style products.

“We always have some little project going,” he says. “It’s hard to say exactly what’s next but there’s always new ideas in the works.”

December 2012 Edition

Congratulations Winners of the 2012 Remodeling Excellence Awards!

Events And Activities

In early November, the Kitsap HBA Remodelers Council presented the awards of excellence to member remodelers. With almost 20 separate entries this year, the judges had their work cut out for them. 13 projects were awarded the coveted REX award. And the winners are:

VISIT the NEW HBA Website! www.kitsaphba.com On Line Registrations!

Thursday, December 6; 7:30 a.m.

Developers Council MAKE RESERVATIONS NOW FOR THE JANUARY 11, 2013 Installation and Awards BASH! Tuesday, December 11; Noon Home Show Cmt. Mtg. Lunch Provided

Commercial Over $225K . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The BJC Group Decks/Gazebos/Porches . . . . . . . . . . . . . . . . . . Sun Path Custom Construction, Inc. Residential Kitchen $30K-$60K . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Accurate Builders Residential Kitchen over $60K . . . . . . . . . . . . . . . . . . . . A Kitchen That Works, LLC Residential Bath over $25K . . . . . . . . . . . . . . . . . . . . . . . A Kitchen That Works, LLC Residential Add. Under $75K . . . . . . . . . . . . . . . . . . . . . . . . . T.N. Miller Remodeling Residential Add. over $175K . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Armstrong Homes New Carport, Garage, or Utility Building . . . . . . . . . . . . . . . . . . . . . Joe Gates Cnstr.

Historic Renovations/Restoration . . . . . . . . . . . . Sentinel Construction & Consulting Exterior Finishes . . . . . . . . . . . . . . . . . . . . . . . . . Sun Path Custom Construction Inc. Judges Choice: Exterior Finishes Commercial . . . . . . . . . . . . . . . . . The BJC Group Whole House Remodel $250K - $225K . . . . . Sentinel Construction & Consulting Whole House Remodel $225K - $300K. . . . . . . . . . . . . . . . . T.N. Miller Remodeling

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 Wayne Keffer, CGR, CAPS • Judy Mentor Eagleson

2012 ALTERNATE NATNL. DIRECTORS LIFE DIRECTORS

Accurate Builders

Thursday, December 13 SPECIAL DATE! Executive Cmt. Mtg (2 p.m.)

Government Affairs Cmt. (2:30 p.m.)

Board of Directors (3:30 p.m.)

A Kitchen That Works

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

January In View: 1/1/13 - Happy New Year! HBA Closed 1/8/13 - SHS Committee, Noon 1/11/13 - Installation and Awards BASH! 1/31/13 - Board of Directors’ Mtg

Expo & Events Director . . . . . . . . . . . . . . TBD hbaevents@kitsaphba.com Administrative Coordinator. . . Kathleen Brosnan info@KitsapHBA.com

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Wednesday, December 12; 4 p.m.

Build A Better Christmas Gift Wrapping Party Goodies, Holiday Music, Fun!

Tuesday, December 25 Merry Christmas!

HBA Closed

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

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

December 2012 Edition

I’d like to review the year 2012: the things that we are doing, and some of our accomplishments this year.

We’ve partnered with the Wayne R Keffer Construction Inc. Kitsap County Department of Community Development and 2012 President accomplished a few crucial things. We have worked with county staff and created new processes and criteria for over-thecounter permits. Some of the permits now available over-thecounter are: commercial tenant improvement, interior remodels, decks, windows, doors, and more.

Our members played a key role in the permitting Lean Improvement Process, which reduced permit processing by cutting the time required to as little as five days for new construction.

Members are currently working together with the county on the same type of process for the construction inspections. We hope that our work together accomplishes improvements as substantial as those made to the over-the-counter permitting process. When the Lean process for inspections is done, we look forward to being able to partner with the county staff on the Lean Process for land-use application review.

HBA members have been very active in the community this year.

The Remodelers Council built a wheelchair ramp allowing a housebound member of our community a safe way to get in and out of their home. I would like to thank all those involved from the Remodelers Council.

The Build a Better Christmas program is very active helping the community and is currently providing gifts from Santa for the residents of the YWCA’s ALIVE Shelter. I am very proud of this program.

Builders Best Awards, our new recognition program for new home building, was an enormous success. There were many entries, and it was a great event. We look forward to continuing this program in coming years and really appreciate all who entered and all who attended this wonderful recognition.

Rex awards, as always, were a highlight of remodelers in the community. The event was a fantastic evening of enjoying community with other remodelers, builders, and our associate members that are so important to all we do. It was another great opportunity to celebrate incredible work done by our members in the community.

Last March, the Peninsula Home and Garden Expo was an enormous success with Ciscoe Morris, gardening expert, visiting our show for the first time. He really drew in the crowds making a great Saturday for our vendors.

The Peninsula Home and Remodel Expo was also very well attended. The revamped the seminar schedule created group participation with better attendance than we’ve seen in years. We have heard lots of positive feedback. It was another great success.

The new website is a great tool for the community to find builders, and for current members to promote their business. There is an opportunity for advertisement if your company wishes.

We also had many after hours socials; they were well attended and offered good opportunities to build relationships with other members.

This is my last article, and I want to be sure to thank Tammi and my kids for allowing me to serve in the HBA. It has been an honor, and I thank the staff and the Board for their support.

Thank you, Wayne R. Keffer

Wayne Keffer CGR, CAPS

Got Health Insurance? As a member of the HBA you have access to one of the best group health insurance programs CGP available. Have you asked for a quote lately? It’s worth doing.

Executive Now that the dust of the Vice President elections have settled, the hard work will begin in earnest as the State works out how to implement the Federal Affordable Health Care Act (upheld by the US Supreme Court last summer). There is a lot to know and a lot of decisions to make.

Recently, the MBA of King and Snohomish County went through their paces working with the Office of the Insurance Commissioner to make sure the Health Insurance program was going to be acceptable to the Office in this new world of insurance.

They have achieved not only the Insurance Commissioner ’s approval, but also have been lauded as the model for other Association type group programs to use going forward. BIAW’s health insurance program is the same as the MBA King/Snohomish program and we are encouraged to learn that this excellent option will continue to be available to the members of the Home Builders Association of Kitsap County.

We are learning more about how our program may be affected in the new State framework. Each HBA member should request a quote from Capital Benefit Services. There is no fee for getting a quote and having the information will help you to know whether you are making the best decisions for you, your family, and your employees regarding health insurance. Call the HBA office today and we can email you a form for a free quote! See the last page of this newsletter for additional information about our health insurance program. You may even get some free coffee in the deal!

As we wrap up 2012, I want to encourage all the companies out there that aren’t members of the HBA to consider joining. Through this Association, the industry is served. We don’t just serve those that make the investment in membership. Our efforts do not stop at just helping members. The services we provide are for the good of the whole and as such many companies are benefitted without contributing. I would ask for you to consider if that is you. The HBA has worked effectively to implement over the counter permitting, and dramatically reduced the permitting timeline for Single Family Residential (as well as other permits like garages, remodels, etc.).

This year, the processing time has gone from months to days! This change didn’t happen because the permit activity has been low.

Permit activity has been at historic low levels for several years and yet the processing time has remained unreasonably long. The reason these times have been reduced is because of the leadership of Larry Keeton (Kitsap DCD Director) and the hard work of the HBA members. Recently, more work has been done in the department to reduce the time for inspections. We expect another dramatic, positive result. Our work on the Shoreline Master Program and the Comprehensive Plan Remand benefits all companies that work in, or rely on, a healthy construction economy. Your support through membership is essential to continuing to work toward an improved Kitsap County. Please make an investment in your future by investing in the HBA of Kitsap County.

Teresa Osinski

December 2012 Edition

Government Affairs Committee

Let’s Talk Stormwater

I was recently working with a past customer who was interested in re-developing an existing commercial site that Robert Baglio The BJC Group was almost totally impervious, approximately 85%.

The 2012 Chair current site was built prior to 1978, which meant there were no stormwater regulations at the time the site was developed; therefore there is no retention or detention facility (water quantity control) and no treatment devices (water quality control). After talking with the client and understanding the scope of the proposed re-development, it became evident that the project was significant enough that it would require the entire site be brought up to meet current stormwater regulations. This is a new requirement that came into affect with the last adoption of the stormwater ordinance. To meet the new regulations, it would be necessary to install a retention or detention facility (water quantity control) as well as water quality control devices. These stormwater facilities would have to serve the entire existing site, even though almost no new impervious area would be added. After discussing this with the client and giving some preliminary cost figures for the re-development, the costs to meet the current stormwater requirements pushed the project over the edge and made it economically unfeasible. The project died.

So one has to step back and look at the current stormwater regulations and ask yourself, what are we trying to achieve? It is my understanding that the stormwater requirements continue to be increased in an effort to clean up the Puget Sound and reduce the amount of pollutants entering our receiving waters. Okay, that makes sense. Now let’s look at the situation that was just described. We have an existing commercial development that has no water quality treatment facilities and no water quantity control. Stormwater flows from the site undetained and untreated; thereby contributing to the pollutants that are impacting the Puget Sound. We have a property owner that is interested in re-developing their property, but due to the ever increasing regulatory requirements and their costs, the re-development of this site will not occur. The site will continue to discharge dirty water to the Puget Sound.

We step back. Approximately three (3) years ago, the stormwater regulations were changed. They became much more stringent. That is when the requirement came into being that if you were to perform a substantial redevelopment of your site, a threshold was established that mandated your entire site be brought up to current stormwater regulations. Water quality and quantity control devices would have to be installed to serve the entire site. Prior to the adoption of these latest stormwater regulations, if a property owner was proposing to re-develop their site, they would receive credit for their existing impervious area and not have to provide water quantity control for the existing impervious areas, but they would have to provide water quality control. This common sense, level headed approach was reasonable, proved economical to the property owner, and resulted in the treatment of stormwater that had previously discharged unabated (untreated) into the Puget Sound. The end result; cleanup of an existing site that previously had no water quality treatment facility; a construction project that provided revenue to the City or County in the form of application fees, permits fees, and connection fees; an increase in

24 hour emergency clean-up

ACTION

O T ff In he eri Se Be ng rv st ic e

the property tax realized by the County because the improvements increased the value of the property; an economic boost to building material suppliers; the generation of numerous construction related jobs associated with the redevelopment efforts; and potentially with the re-development of the property more people would be gainfully employed by the property owner.

Boy, the way I see it that looks like a win, win, win, win, win, win situation.

I think this is a fine example of where an increase in regulations to achieve an end is actually preventing the ultimate goal from being achieved.

Sometimes it is important to step back and look at the big picture, making sure you understand the full ramifications of your actions or regulations.

The Biggest & Best Home Show West of Seattle!® March 15, 16, & 17, 2013 Kitsap Fairgrounds and Event Center • Three buildings!

• Vendors inside and out!

• Landscape displays!

• Great Seminars!

• Master Gardeners on site!

• Habitat for Humanity’s Builder Surplus SALE! • Regional Celebrity Ciscoe Morris The professional Expo staff at the Home Builders Association continue to work to make our Expo the best choice for vendors and for the public. We will continue to have low admission rates and free parking again this year, plus interesting seminars and displays to draw folks in!

All returning vendors must renew their booth contract by December 20th to guarantee their space. All new vendors will have their applications considered as soon as the returning vendor deadline is passed. We are always looking for new and inter esting vendors. Our booths are competitively priced and we invest in significant Expo promotion throughout the Kitsap region.

The Peninsula Home and Garden Expo is proudly brought to you by the Home Builders Association of Kitsap County, Kitsap Sun, Wave Broadband, and the Kitsap Credit Union.

Mark your calendar for March 15, 16, and 17, 2013 for the Biggest and Best Home Show West of Seattle. Visit the HBA website for details at www.kitsaphba.com and beginning in February monitor the details at www.kitsaphbahomeshow.com where the attractions, seminars, and vendors will be listed.

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December 2012 Edition

Welcome New Members Century Insurance Services, LLC Susie Nelson 3208 50th ST CT NW, Ste C104, Gig Harbor, WA 98335 (253) 851-9600 And the SPIKE goes to...

Bob Camp, Camp Corporation

Thank You Renewing Members 35 Years Silverdale Plumbing Inc Over 20 Years Kitsap Lumber & Hardware Inc (23 Years!)

Joe Gates Construction Inc Over 15 Years R-B Enterprises & Associates LLC Over 10 Years Advanced Htng. & Cooling Inc (14 Years!)

Bruce Giese Construction Co. Inc. 10 Years Contractor’s Roof Service Inc. Over 5 Year TN Miller Remodeling Port Orchard Plumbing & Heating Inc United Moving & Storage 1 Year Caseco Associates Inc. Premier Rentals LLC Kelley Imaging Systems

Please UPDATE YOUR HBA Information!

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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.

As a member of the HBA you have benefits provided through the NAHB Member Advantage Program. Need to rent a car? Check out the Hertz Rental car discount for members.

Use discount code CDP# 51046 at www.hertz.com/nahb to book online, or phone Hertz at (800) 654-2200 and use the same discount code CDP#51046.

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Just visit www.kpbj.com/user/register and sign-up for our emailer to start receiving breaking area news stories right in your inbox. For more information call (360) 876-7900.

2012 Kitsap Home Builders Association Remodeling Excellence Awards • • • • • • • • • • • • •

The 2012 Remodelers Excellence awards were presented for outstanding projects in the following categories: Decks/Gazebos/Porches/Outdoor Kitchens – Sun Path Custom Construction, Inc. Historic Renovations/Restorations – Sentinel Construction & Consulting Inc. Commercial Remodel Over $250,000 – The BJC Group New Carport/Garage/Utility Building – Joe Gates Construction, Inc. Residential Bath Over $25,000 – A Kitchen That Works, LLC Residential Kitchen $30,000 - $60,000 – Accurate Builders Residential Kitchen Over $60,000 – A Kitchen That Works, LLC Exterior Finishes – Sun Path Custom Construction, Inc. Judges’ Pick: Commercial Exterior Finishes – The BJC Group Residential Addition Under $75,000 – T.N. Miller Remodeling Residential Addition Over $175,000 – Armstrong Homes Whole House Remodel $150,000 - $225,000 – Sentinel Construction & Consulting, Inc. Whole House Remodel $225,000 - $300,000 – T.N. Miller Remodeling

The BJC Group

Joe Gates Construction, Inc.

A Kitchen That Works, LLC

Accurate Builders

Sun Path Custom Construction, Inc.

Sentinel Construction &Consulting, Inc.

T.N. Miller Remodeling

Armstrong Homes

PROPERTY FOR SALE OR LEASE Commercial CBA486951 $100,000 Downtown Redevelopment in Bremerton offer one level Commercial retail/office space with 1,240 SF, 2 restrooms, 5 parking spaces plus on street parking in an area of redevelopment.

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Poulsbo CBA460776 $3,300,000 30,000 sq.ft. Office building. 93% occupancy includes additional land for development or another building.

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December 2012 Kitsap Peninsula Business Journal • KPBJ.com 23

Happy Holidays

Private operator thinks Bremerton Marina could be profitable Port of Bremerton will solicit proposals to take over managing controversial facility that runs annual loss of about $400,000

By Tim Kelly, Editor After some tense discussions in recent weeks, the Port of Bremerton is set to issue a Request for Proposals from private operators interested in taking over management of the port’s unprofitable Bremerton Marina.

A Bremerton native and owner of the

successful Port Hadlock Marina wants to take a crack at it, and Robert Wise may have the field to himself.

The decision to put out an RFP came after Wise, who lives on Larry Stokes Bainbridge Island and is a member of that city’s harbor commission, put together a plan for running the marina and sent it to the three port commissioners.

Wise, reached by phone last last week while he was on a ferry, said he did that

because of what he read in a newspaper story reporting on a recent port commission meeting.

“The commissioners were expressing frustration with the fact Roger Zabinski that the marina is not doing well, and there was even some consideration of shutting it down,” he said. “That alarmed me.”

He was referring to a Sept. 20 article in the Kitsap Sun, in which Commissioner Larry Stokes was quoted as saying “We'd be

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24 • Kitsap Peninsula Business Journal • KPBJ.com December 2012

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‘I think it’s an absolutely fantastic property, but I don’t think it’s been marketed well.’

— Robert Wise, who’s proposing private operation of the Bremerton Marina better off if we shut it down," rather than continuing to use taxpayers’ money to subsidize losses at the Bremerton Marina.

The controversial $34 million marina has an occupancy rate of about one-third of the more than 300 moorage slips, and it has not come close to breaking even since it opened in 2008, around the time the recession was taking hold. The Port of Bremerton’s 2013 budget lists just over $1 million in operating costs — nearly the same as the port’s other marina in Port Orchard — and projects revenue of only $600,000.

But Wise, who has not been identified at any port commission meetings as the person who submitted the unsolicited proposal, doesn’t want to see the marina closed.

“I think that would be an incredible disservice to the community,” he said, “and I think it could be run profitably.”

Port CEO Tim Thomson seemed less sure of that when he expressed concerns that marina staff have about bringing in a private operator.

“We don’t understand how a marina that is losing $400,000 can be turned around and made profitable, for reasons we have not yet discovered,” Thomson said at the Oct. 25 meeting when commissioners first discussed the RFP option and disclosed that a private business had expressed interest in managing the facility.

At that meeting and a subsequent study session Nov. 11, Stokes adamantly repeated that it was an “unsolicited offer” that prompted consideration of an RFP. Commissioner Roger Zabinskie expressed concern at the Nov. 11 meeting about the need to be “transparent and aboveboard” in the process, and said he was bothered by possible back-door communication with port commissioners or Bremerton city officials that led to a revised version of the original proposal being submitted before the RFP was finalized.

Stokes responded by insisting “I’m not in bed with nobody,” and said his overriding interest is looking out for the interests of the port’s taxpayers in considering how to cut losses at the marina.

Wise seemed mildly amused by the drama at the port meetings, and said the second email he sent in early November added some information to his proposal only in response to questions from the commissioners.

While he acknowledged the risk Marina, page 25

Bank pulls Bremerton building from foreclosure sale Kitsap Peninsula Business Journal The distinctive brick building with its curved corner at Sixth Street and Pacific Avenue in downtown Bremerton has twice been on the verge of being sold in a foreclosure auction.

But the four-story office building, which opened in 2008 but has only a small amount of its space occupied by tenants, got another reprieve when the trustee handling the foreclosure filed a notice of discontinuance of the sale on Nov. 13.

The Sixth/Pacific building was a project of Tim Ryan Properties LP, a well-known Kitsap developer based in Poulsbo with its sister company, Tim Ryan Construction.

TRP defaulted in May 2010 on a construction loan that had a $9.5 million balance at the time.

The loan was from Frontier Bank, but it was taken over by Union Bank after Frontier failed. Union Bank filed a notice of trustee’s sale in May 2012 that listed Aug. 10 as the date of the foreclosure auction.

That was twice postponed, with Nov. 9 the most recent scheduled sale date, but the

MARINA

port’s RFP will probably be mid-December, and commissioners could make a decision in early January on whether to go with a private operator. With such a tight time frame, it’s possible no other responses besides Wise’s will come in.

Regardless, Wise said he’s ready to step in.

“I hope we can help, and we look forward to the opportunity to work with port,” he said. “I really think we can make a big difference, and I think that ultimately is going to serve the Bremerton business community really well.”

The curved brick office building at Sixth Street and Pacific Avenue in Bremerton has been pulled from a scheduled foreclosure sale.

Tim Kelly photo

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December 2012 Kitsap Peninsula Business Journal • KPBJ.com 25

from page 24 involved in if he took over as operator, Wise said “I think it’s an absolutely fantastic property, but I don’t think it’s been marketed well.”

His real estate management company, Marsh Anderson, LLC, has owned the 161slip Port Hadlock Marina for two years, and Wise has six years’ experience in marina management. He’s on the board of the Recreational Boating Association of Washington, and is on the marina committee of the Northwest Marine Trade Association.

Bremerton’s high vacancy rate isn’t solely due to the weak economy, he said, noting that the Port Hadlock Marina is 98 percent full in summer and 85 percent in winter.

“I think they need to revamp their whole sales and marketing approach, and try a completely different tactic for how to attract people to the area,” he said.

“I certainly have the contacts in the marine industry to get the word out,” he added, “and I think we could make a serious dent in the number of vacancies there.”

As for the operations side, Wise said he didn’t know what changes in staffing might be made at the marina if he takes over, and that it depends on what the RFP stipulates.

“We’ll apply our business plan to the requirements they put in that document,” he said. “We’d have to put everything on the table and look at the best way to save taxpyers hundreds of thousands of dollars.”

One thing Wise said everyone involved agrees on is that changes are needed.

“It’s not going to break even, much less have a return” with the way things have been run, he said. “It’s pretty clear to me that it’s never going to improve at this rate.”

The deadline for responding to the

sale did not occur.

The notice of discontinuance of the trustee’s sale did provide any explanation for why the bank canceled the sale.

Officials from Tim Ryan Properties did not respond to a request for comment before press time.

The company has previously issued statements saying it hopes to work with the bank to maintain ownership of the building and find more tenants.

The building, which is adjacent to the Admiral Theatre and across the street from the Norm Dicks Government Building, is still featured on the TRP website. It has 26,000 square feet of office space on three levels above the ground floor that was intended for retail use. There are two underground levels for parking.

The website says Ryan’s plan was “to attract a collection of small retailers and an upscale pub or restaurant.” But the recession made it difficult for developers to find tenants for new projects, and the Bremerton building also has had problems with leaking during rainy weather.

26 • Kitsap Peninsula Business Journal • KPBJ.com December 2012

Time for a year-end review of your financial strategy

By Angie Sell Now that 2012 is drawing to a close, you may want to review the progress you’ve made this past year in many areas of your life – including your financial situation.

By going over your investment portfolio and other key areas related to your finances, you can learn what moves you may need to make in 2013 to stay on track toward your important objectives, such as college for your children, a comfortable retirement and the ability to leave the type of legacy you desire.

To get a clear picture of where you are, consider asking yourself these questions: Am I taking on too much risk?

Although 2012 has generally been a pretty good year for investors, we’ve certainly seen periods of considerable volatility. During these times, did you find yourself constantly fretting about big drops in your portfolio value? In fact, have you consistently experienced this type of worry throughout your years as an investor? If so, you might be taking on too much risk for your individual risk tolerance. Review your holdings to determine if you can lower your risk level without jeopardizing your overall investment strategy.

Am I investing too conservatively?

Just as you can take on too much investment risk, you can also go to the other extreme by investing too conservatively. If

your portfolio contains a preponderance of investments that offer significant preservation of principal but very little in the way of growth potential, you may be endangering your chances of accumulating the resources you’ll need to achieve your long-term goals.

Am I contributing as much as I can afford to my retirement plans? If you have access to an employer-sponsored retirement plan, such as a 401(k), 403(b) or 457(b), consider yourself fortunate.

Your plan has the potential to grow on a tax-deferred basis, and you typically contribute pretax dollars – the more you put in, the lower your annual taxable income. Plus, your employer may match part of your contributions. So if you’ve been

underfunding your retirement plan, ratchet up your funding in 2013. At the same time, you may still be eligible to contribute to an IRA; if so, try to “max out” on it. A traditional IRA grows tax-deferred while a Roth IRA can grow tax-free, provided you meet certain conditions.

Am I adequately protecting my income – and my family? Over time, you’ll experience many changes in your life – marriage, children, new job, new home, etc.

Most, if not all, of these changes will require you to make sure you have adequate life insurance in place to help guard your family’s future, should anything happen to you. Furthermore, to help replace your income should you become disabled, you may well need to purchase an adequate

Help older parents avoid financial scams

By Adam Burleson Here’s a disturbing statistic: One out of every five Americans over the age of 65 has been victimized by a financial scheme, according to the Investor Protection Trust, a nonprofit organization devoted to investor education. If your parents are in this age group, should you be concerned? And can you help them avoid being “scammed” s o that they maintain control over their finances?

The answer to the first question is “yes” — you should be concerned. Of course, as the numbers above show, most aging Americans are not being swindled, which suggests they can take care of

themselves quite well. Still, it’s no secret that many fraud schemes target seniors because of their concentrated wealth and in many cases, trusting nature. And as much as you’d like to think otherwise, your parents could be susceptible to ripoff artists.

Fortunately, in regard to the second question above, you can indeed take steps to help prevent your parents from being fleeced. Here are a few suggestions: Observe their behavior. If you live close to your parents, listen closely to any new friends, investment deals or sweepstakes they mention during your normal interactions . If you’re in a

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amount of disability income insurance.

Do I need professional help? As the above questions indicate, maintaining control of your financial situation can be challenging – especially if you try to do it all on your own. You might benefit from working with a financial professional – someone who can analyze your situation objectively and make recommendations based on your risk tolerance, time horizon and specific goals.

Before the clock runs out on 2012, take the time to ask yourself the above questions. The answers may well spur you to take positive action in 2013.

• Angie Sell is a financial adviser with Edward Jones in Silverton.

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different city, try to stay abreast of your parents’ behavior by communicating with them frequently and by checking in with other family members or friends who have occasion to see your parents.

Urge them to watch out for suspicious e-mails. You’ve probably seen them — the e-mails offering to “reward” you with huge amounts of money if you will only contact such-andsuch from a distant country and then put up a “small” sum to initiate some illdefined transaction. You probably “spam” these without a moment’s thought — and you should urge your parents to do the same. Remind them that any offer that sounds “too good to be true” is, without question, neither “good” nor “true.”

Help, page 27

Dept. of Revenue offers free tax workshop in Bremerton The Bremerton office of the Washington State Department of Revenue is hosting a free workshop for new and small business owners on Dec. 6 from 9-11 a.m. at the Sheridan Park Community Center, 680 Lebo Blvd. in Bremerton.

Participants will learn about Washington excise taxes, reporting classifications, deductions, tax incentives, sales tax collection, and record-keeping requirements. All receive a workbook and helpful reference guide to Department of Revenue rules and regulations.

To register, visit the Department of Revenue Web site at www.dor.wa.gov or call (800) 647-7706. Space is limited. A complete schedule of workshops statewide and a short streaming v ideo version of the workshop are available on the Web site.

Don’t overlook financial risks in retirement

By Calvin Christensen When you retire, you may well have accomplished some important financial goals, such as sending your children through college and paying off your mortgage. Yet, you can’t relax just yet, because your retirement could easily last two or three decades, which means you’ll need at least two or three decades’ worth of income – which, in turn, means you’ll

need the proper savings and investment strategies in place. And, just as importantly, you’ll also need to be aware of the types of risk that could threaten these strategies.

Let’s consider some of these risks: Longevity – None of us can say for sure how long we’ll live. But it's still important to have an estimate, based on your health and family history. So if you

HELP

Suggest professional help. If your parents are already working with a qualified financial professional, they’re probably less likely to be victimized by fraud than if they were managing their finances on their own. And it’s a good idea for you to know their financial advisor, and for him or her to know you, as you may well be involved in your parents’ legacy planning. But if your parents don’t already have a financial advisor, you may want to recommend one to them, particularly if it’s someone you already know and trust.

It’s entirely possible that your parents won’t need any assistance in avoiding financial scams. But, just in case, be prepared to act on the above suggestions.

Your intervention could help preserve your parent’s financial independence.

• Adam Burleson is a financial planner with Edward Jones in Bremerton.

from page 26 Encourage them to further their financial education. Law enforcement agencies, health care professionals and reputable financial services providers all offer personal financial management programs designed specifically for seniors.

Look for these types of programs in your area, encourage your parents to attend — and even consider going with them.

Become familiar with their financial situation. Having a serious discussion with your parents about their finances may not be easy — but it’s important. The more you know about their investments, retirement accounts and estate plans, the better prepared you’ll be to respond helpfully if they mention an action they’re considering taking that, to you, just doesn’t sound appropriate.

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think you may live for 25 years in retirement, you’ll want to withdraw enough from your investments each year to enjoy a comfortable lifestyle – but not so much that you deplete your funds before the 25 years have passed.

Inflation – We’ve experienced pretty mild inflation over the past few years. But over time, even a low rate of inflation can seriously erode your purchasing power.

To illustrate: If your current monthly costs are $3,000, with only a 3 percent annual inflation rate, that would be about $4,000 in 10 years. And in 25 years at that same rate, your monthly costs will have more than doubled, to about $6,200. To help protect yourself against inflation risk, it's important to have at least some investments that offer growth potential, rather than only owning fixed-income vehicles, such as certificates of deposit (CDs). You’ll also want to consider sources of rising income potential, such as dividend-paying stocks. (Keep in mind, though, that stocks can reduce or discontinue dividends at any time and are subject to market fluctuation and loss of principal.)

Market fluctuations – When you retire and begin taking withdrawals from your investment portfolio – that is, when you begin selling off investments – you’d obviously like prices to be high. After all, the classic piece of investment advice is

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Your local Edward Jones financial advisors: Ron Rada

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December 2012 Kitsap Peninsula Business Journal • KPBJ.com 27

At Edward Jones, you’ll get more than respect. We can help your business gain a financial advantage. Together, we can design an individual program for your business, with the kinds of tools and options you’ll really use, like:

Call or visit today.

“buy low, sell high.” But it’s impossible to try to “time” the market this way, as it will always fluctuate. That’s why you may want to consider sources of income whose value is not dependent on what’s happening in the financial markets. Your financial advisor may be able to recommend investments that can provide you with this type of income stream.

Low interest rates – Many retirees depend on fixed-rate investments for a good portion of their retirement income – so it’s a real challenge when interest rates are low. Consequently, when you retire, you’ll certainly need to be aware of the interest-rate environment and the income you can expect from these investments.

Longer-term fixed-rate vehicles may be tempting, as they typically offer higher rates than shorter-term ones, but these longer-term investments may have more price fluctuation and inflation risk than shorter-term investments. Consequently, you'll still likely need balance between short, intermediate, and long-term investments to provide for a portion of your income in retirement.

Retirement can be a rewarding time in your life. And you can help make your retirement years even more enjoyable by understanding the relevant investment risks and taking steps to address them.

• Calvin Christensen is a financial adviser with Edward Jones in Silverdale.

Where has all the money gone?

28 • Kitsap Peninsula Business Journal • KPBJ.com December 2012

By Rick Flaherty With a call to action by our nation’s military, the federal government and nearly all the states for businesses and innovators to bring truly disruptive innovations to the forefront — where is the capital to support this call?

Our banks won’t even consider a business loan that in the past was simply a matter of standard banking procedure.

Today, banks can’t get out of the shadows of their own fear — cash-flow lending has taken on a whole new level of excuse for saying no to traditional type loan requests.

Bankers blame the Feds for the lack of lending saying they now have such strict compliance requirements that most loans will not the meet the technical audit demands of the FDIC or other banking regulators. Yet, we hear and read in the media that the Feds are telling the banks they need to loan more money to businesses.

What happened to “relationship banking?” Those were the good ol’ days when your banker actually came to visit your

business, got to know you and your partners and actually took an interest in how you operated your business. And by golly the banks made loans to Individuals based on their credibility, their business acumen, their honesty and integrity — their ability to operate their business under the toughest of circumstances, and trust existed that the loans would be repaid because the business owners gave their word.

Today, a borrower can have millions of dollars in equity in real estate, business assets such as inventory, equipment, receivables, etc., and operate a successful business. And this business — after the Great Repression that lead to the worst economic tsunami since the 1920s and ’30s — is still in business and surviving the daily challenges of this new normal. However, if it is determined that there is insufficient cash-flow to service the newly established debt… forget it, the answer to a request for that small nudge of support in the way of a business loan is a resounding no.

Before I go further, here is the conundrum. “Show us the cash,” says the banker (who has likely never run a business in his/her life) “or you can make a deposit in our bank in an amount equal to your request and we’ll loan you the funds you need back

Gary Lucy / CPA, CFP • Alison Fong • Brian Cox • Don Cox / CPA 360-876-1938 • 1590 Bay Street, Port Orchard • pacificasset.com

to you.” Yes, I know you have heard this one before and many who read this story will have a similar tale of the umbrella banker (referring to Mark Twain’s famous saying "A banker is a fellow who lends you his umbrella when the sun is shining and want s it back the minute it begins to rain.")

If we had the cash-flow why would we need the bank? If we had the cash why would we deposit it in the bank at a quarter-of-onepercent return on our deposit and turn around and pay 4, 5 or 6 percent or higher for lending our money back to us? What are banks for if not making loans? They sure don’t protect our money and they sure don’t pay the public a return on the ir deposits.

So what has happened and where is all the money? Banks are reporting millions to billions in profits, increasing and adding just about any type of fee they think than can get away with, but when it comes to supporting the business client that has been faithful for 20 years or more to a particular bank — they are asleep on the proverbial Blue Couch! They espouse false claims of serving their customers and helping businesses in the community. Really? Isn’t it about time these bankers handed back the umbrellas they put away and truly put their money where their advertising claims espouse and help support small business?

If small business — the creators of 75 percent of jobs in America — are going to answer the call for disruptive innovation, are going to create, design, invent and once again become the engine of imagination that built this great nation to what it is today and provide truly disruptive innovation — then those who can help need to quit telling the public they are helping when it is blatantly apparent they are not; oh, yes, the banks will tell us they are making loans but only to those businesses that have cash assets.

Lenders such as Craft3 and other government and state-supported inst itutions need to revamp their websites or come clean with the truth and facts about their lending practices. We are tired of the misrepresentations, the false advertising and the use of our tax dollars supporting these types of veiled Vulture Capitalists in Emperor’s Clothing. These nonprofit community development financial institutions (CDFI) are nothing more than glorified banks claiming to help support s mall businesses at what they assert are reasonable rates, low fees and lending mechanisms that differ from traditional lending. While not hard money lenders, some of these federal and state-supported institutions are not accountable for the terms of their loans nor the claims they outline on their websites and on the phone.

To bring innovations sitting in the R&D rooms and CAD development cubicles of thous ands of small businesses (and small is less than 100 employees, not the 500 as defined by the Small Business Administration) our banks need to start lending. The FDIC, Federal Reserve and

other regulators need to relax regulations and support other forms of collateral such as business and real estate assets, minimal cashflows on the front end of loans, and broaden the acceptance of projected growth in ca shflows that can be generated from these loans to repay debt.

Small businesses can’t miraculously generate cash-flow without that initial spark — that match and igniter fuel called CASH — and then and only then can small business deliver on the call by our nation’s military and federal and state governments to bring to the forefront disruptive innovations.

The route of venture capital, angel investors, private equity groups or even the growing crowdfunding movement, all should be approached with caution. The ubiquitous TV show Shark Tank demonstrates just how vehement these sharks can be and how they can own you or leave you without your dream as they bargain to buy your company, pay you a small stipend of what you think your company is worth and leave you with a puny royalty; all the while glowing what a great deal you got!

These capital-raising methods have their place, but generally they are for more mature and second and tertiary funding levels where the innovations are commercialized and substantial growth and scaling the business is critical to reaching the next level of funding.

This type of funding — often referred to as mezzanine funding — is definitely not for the faint of heart. Make sure you are not desperate and have good legal counsel, CPA advisors or financial consultants… they aren’t called sharks because they are nice guys!

In today’s market these alternate funding methods are hurting small innovators rather than helping them. The Sharks, PEG’s and Angels and hard money lenders know how desperate some innovators are and will take advantage of the situation. It’s easy prey as these dreamers are so anxious to see their innovations make it to market that they are willing to just about give away their firstborn to succeed and obtain funding. I personally abhor these vulture culprits as they are borne of an ugly time in our economy. In the past these alternative funders played an important if not critical role in the funding mechanism, but today many — and not the vast majority — have come out from u nder the proverbial rocks where they were hiding to take advantage of many budding entrepreneurs who will never see the fruits or their inventiveness and creativity.

In closing this story I will do so with a short story: Standing around a barrel filled with paper and wood are a dozen cold, hungry and desperate individuals. Most of these are our neighbors, former employees that worked alongside us, fathers and mothers, maybe one of their children, a former executive or two — maybe a CEO who lost his or her company, a Gone, page 29

Why dividends? Why now? dividend-paying stocks that have a track record for dividend growth can help investors seeking income to create a hedge against inflation.

Dividend growth means you have the potential to receive more income next year than you received this year if the companies you invest in raise their dividends. This could help you maintain your lifestyle and income needs plus help you hedge inflation as you transition through retirement. Many companies have a long track record of paying and raising their dividends.

One of the portfolios we currently recommend to investors is made up of 36 dividend-paying stocks, has a portfolio yield of 3.9 percent and last year had about 7 percent growth in dividends. Compare and contrast this stock portfolio with the current yield on ishares total bond market ETF (AGG), which is designed to track the performance of the Barclays US Aggregate Bond Index and has a current yield of 2.39 percent. Historically stocks have performed better than bonds during periods of inflation. While inflation is currently very low, many believe inflation is likely to rise in the future.

Bonds have a negative correlation to interest rates. So when interest rates eventually begin to rise, the value of your bond portfolio would decline, and you could lose money if you had to sell your bond before the maturity date. When you hold bonds in mutual funds you lose out on the ability to hold individual bonds to maturity. Because the Federal Reserve has set short-term interest rates at zero, I'd have to bet that interest rates will probably not go lower in the future. For this reason, a forward-looking income investor would be wise to focus on individual bonds they are willing to hold to maturity and/or dividend-paying stocks that are trading at fair valuations.

When considering a stock for dividend

GONE

veterans, military spouses, our neighbors and their children, but if you truly are calling for disruptive innovation then break down the barriers to funding and moving innovation to the branches of our military. To the banks, get out of your shadows and the fear of lending and once again look to your loyal customers who stood with your bank in times of inclement weather and never pulled their umbrellas… for these creative individuals their rain is in the word no; a word none of these individuals can comprehend.

It’s time to allow the sun to shine once again on innovation and inventive small businesses, and to ignite the fires of creativity that bring about true disruptive technologies. We can’t all be Apple’s or Google’s or Mr. Softy’s on the front end; but I’ll venture to bet that there are dozens of these types of entrepreneurs right next door… will you please open the door?

• Rick Flaherty is president and CEO of Leader International Corp. and Differential Energy Global Ltd. He is a serial entrepreneur and innovator, and holds dozens of patents on products used around the globe.

from page 28 small business owner or two who saw their dreams interrupted by something they even today don’t fully understand; people just like you and me. But now they are cold and hungry and are willing to part with their last dollar, quarter or dime if someone would just light that fire, ignite that barrel of paper and wood and create a sense of hope so maybe these individuals can find the solace and warmth they once knew.

Just think… if I had that match and some igniter fuel I could light that fire of hope and create jobs for many of those individuals who are out of work, out of money and clearly see little warmth ahead. That match and igniter fuel is cash and it is desperately needed to fund innovation. So Uncle Sam, it’s time to stop with the excuses, motivate the banks to loan for innovation and at loan rates and terms that allow for success. And to the military… if you want us to lay down our lives for our country, we do that each and every day in the risks we take to employ our

growth potential, one of the most important factors is the payout ratio. The payout ratio is basically the company's dividend per share divided by their net earnings per share. For example, if the dividend is $2 and the net earnings per share is $4, you have a 50 percent payout ratio (2/4=.50). Looking for stocks that have a long-term track record of paying dividends, raising dividends and have a payout ratio of less than 50 percent could help an investor gauge whether the future of a dividend is likely to continue and if the company has potential to grow their dividends in years to come.

The "fiscal cliff" uncertainty regarding the taxation of dividends is certainly worth considering. Currently qualified dividends are taxed at the long-term capital gains rate, which worst case is only 15 percent.

Depending on what our elected leaders do before the end of the year will have an impact on how dividend income will be taxed in 2013 and going forward. Most of the tax professionals I've talked to seem to think the new tax rate starting next year will be 20 percent for long-term capital gains and dividends. However if Congress is unable to come up with a viable bipartisan solution, then qualified dividends could end up being taxed as ordinary income tax rates, which could be as high as 39 percent.

Remember you should not focus on how much money you make, but you should

focus on how much you actually get to keep after uncle Sam takes his share.

For many investors headed into retirement, a combination of all of the different income tools available will probably make sense to help them create a retirement plan that meets their need for income, inflation and protection in conjunction with their risk tolerance. Be sure to find an adviser that can help you explore all of your options and construct a plan that will keep you thriving in retirement.

(Editor’s Note: Article written by Jason Parker, who is president of Parker Financial LLC, a fee-based registered investment advisory firm specializing in wealth management for retirees. His office is located in Silverdale. The opinions and information voiced in this material are not intended to provide specific advice or recommendations for any individual, and do not constitute a solicitation for any securities or insurance products. All information is believed to be from reliable sources; however, no representation is made as to its completeness or accuracy. Please consult your trusted professional for advice and further information. Jason Parker is insurance licensed and holds his series 65 securities license. He offers annuities, life and long-term care insurances as well as investment services.

Follow Jason’s blog at www.thriving-inretirement.com.)

December 2012 Kitsap Peninsula Business Journal • KPBJ.com 29

By Jason R. Parker Since the early 1930s dividends have accounted for more than 40 percent of the total return of large-cap stocks in the United States.

As baby boomers begin to transition into and through retirement, they're going to be looking for ways to generate income from their investments while at the same time trying to keep pace with inflation. The fact that 10 million boomers are retiring every day is reason to give pause and pay attention to income-producing investments. The baby boomer generation has several options to try to pursue their income and lifestyle goals. Below are a few of the most common: • They can buy bonds and live off the income from the bonds.

• They can purchase dividend-paying stocks and live off the income from the stocks.

• They can purchase an annuity and have a guaranteed income stream from an insurance company.

• They can use a total return approach to portfolio management and retirement income by applying the 4 percent rule that says you shouldn't take out more than 4 percent per year from a properly diversified portfolio or you risk running out of money in retirement.

In light of the current economic conditions, slower global growth is reasonably expected and higher inflation is anticipated. Just how do we plan to cope with a rising interest rate environment?

Dividend-paying stocks have become very attractive because they tend to have favorable fundamental attributes and have historically exhibited lower levels of volatility. Creating a portfolio of diversified,

High-speed ferry’s future depends partly on wake study Funding source would be required to subsidize service beyond this year’s federally funded pilot program

30 • Kitsap Peninsula Business Journal • KPBJ.com December 2012

By Tim Kelly, Editor The Rich Passage I is headed to Port Townsend for maintenance and winter storage, and whether the high-speed passenger ferry will return to its namesake waterway in the future is uncertain.

Kitsap Transit operated the 117passenger vessel between Bremerton and Seattle during a federally funded pilot program this summer and fall, getting riders across in 35 minutes, compared with the 60-minute crossing on car ferries operated by the state system.

The program's purpose was to determine whether the sleek passenger ferry — a $5 million catamaran that uses a hydrofoil for adjusting its lift, reducing the wake generated at high speeds — causes adverse impacts on the shoreline when it zips through narrow Rich Passage.

The state system once operated a highspeed, passenger-only ferry on the same route, but the Department of Transportation ended the service in 2003

"This was actually the closing of many, many years of research," Clauson said. "This was the last and final piece of that process."

That research continued even after passenger service ended, he said, as the vessel was still making runs in November on different course lines through Rich Passage.

The scientific study may find no shoreline damage, but that would not be a guarantee the high-speed ferry service will resume next summer.

"Even if the report Kitsap Transit photo indicates you could do it, The Rich Passage I high-speed passenger ferry was operated by Kitsap Transit between Bremerton and Seattle this with no environmental summer and fall. Research on shoreline impacts is being analyzed to determine if the ferry could operate without impacts, we'd still have to damaging shorelines. have a funding source," Clauson said.

In addition to the because of concerns about shoreline passage; a preliminary assessment is scientific research on shoreline impacts, the erosion from the wakes. expected around the first of the year, and a pilot program also gave Kitsap Transit the Scientists are analyzing data collected complete report should be ready this opportunity to gauge the level of demand this year by various means to measure spring, Kitsap Transit executive director for the service and how much of the wakes, waves and water levels in the John Clauson said. operating costs could be covered through passenger fares.

“Part of our Rich Passage study is to determine the actual cost of operating the passenger ferry, and what we could expect in terms of ridership, and fare box recovery,” Clauson said. “That was part of what our goal was in this whole effort.”

When the service began in late June, the fare was $7, slightly less than the $7.70 summer rate charged by the Washington State Ferries. Near the end of the summer, Kitsap Transit added a midday round-trip run to the two morning and afternoon trips on weekdays, and expanded the service to Saturdays, while also reducing the fare to $6 to make it competitive with what WSF passengers pay for 10-ticket passes. But a $99 monthly pass on WSF was still less expensive for daily commuters.

Clauson said Kitsap Transit didn’t get the most accurate picture of passenger demand since multi-ride passes weren’t offered, and there was no advertising for the service, but “even with that, we still had some pretty heavy loads.”

He noted that a lot of King County employers buy their employees ORCA cards, which can be used on most Puget Sound-area transit systems including Kitsap Transit’s buses. If trips on the Rich Passage I were included in the ORCA cards, it could attract even more riders on the high-speed passenger ferry.

“I was here when Washington State Ferries operated their passenger-only ferry program at high-speed, and we saw a positive impact to the community and Ferry, page 31

Art Anderson Associates designs gold dredge for use in Alaska Art Anderson Associates, a Bremertonbased multi-disciplinary engineering services firm, recently completed design of a new dredge vessel for Pacifica, a Seattlebased vehicle assembler. The 50-foot vessel was recently delivered to a customer for gold dredging operations near Nome, Alaska.

Art Anderson Associates was engaged

by Pacifica in December 2011 to develop a design concept into a complete design for construction. The firm’s naval architects and marine engineers began by preparing a computer-generated model of the vessel based on the concept drawings, which was the basis for initial hydrostatic and weight calculations.

In Phase II of the project, Art Anderson Associates developed construction drawings for the hull and superstructure, and finalized the weight and stability calculations. In the project’s final phase, the team provided fuel, water and controls design assistance, along with support for deployment.

The vessel was designed specifically to meet the unique requirements of subsurface dredging operations in the remote coastal waters of the Bering Sea, and is powered by twin 300-horsepower outboard motors. It features a custom-designed bow

WSTA hosts open house to celebrate, plan for group’s future

FERRY

from page 30 demands for that kind service,” Clauson said. “They had 350-capacity boats, and at peak sailings they were turning people away.

“So clearly the demand and interest is there … (and) I think it would do our economy over here a lot of good.”

However, he notes that even though the passenger ferry running near full capacity could cover as much as 40 percent to 50 percent of operating costs through fares — much higher than for buses — the service would still have to be subsidized.

That subsidy wouldn’t come from Kitsap Transit, nor from the federal grants

for cutting through rough seas, and all pump, sluice and crane systems to conduct its gold dredging mission.

“This was a fun project in that we were able to learn quite a bit about the gold dredging business, the unique equipment

defray the cost. Anyone who has considered volunteering for the WSTA or joining the board is highly encouraged to attend.

The WSTA is a 501(c)3 nonprofit organization whose mission has grown to support the vital role of technology in economic and community development.

Current WSTA leaders say that for the organization to grow and move forward, it needs fresh energy and vision to help chart the new course. The open house is a great way for anyone interested to learn more and become involved.

For more information and to register for the open house, go to westsoundtechnology.org.

that paid for the Rich Passage I and the associated research.

“It’s really a decision for our local elected officials,” said Clauson, a longtime Port Orchard City Council member. “They have to decide if they want us to go forward with a plan” to find a funding source.

One idea that’s surfaced is to incorporate the Rich Passage I into the state ferry system’s Bremerton-Seattle schedule, since WSF is facing budget cuts that might eliminate a midday car ferry run and the latest nighttime runs.

Clauson said there’s been some general inquiries about the idea, but no discussions with WSF at this point. The state ferry system would need legislative approval to consider reinstating passenger-only service.

360-613-5220

360-373-2137

December 2012 Kitsap Peninsula Business Journal • KPBJ.com 31

The West Sound Technology Association will host its holiday celebration Dec. 20 at the Yonder House on Bainbridge Island. The event starts at 4 p.m. and will include refreshments and entertainment, as well as an opportunity to share thoughts about the organization’s mission and direction for 2013 and beyond.

The event is open to all current, past and prospective members, as well as any partners, sponsors, supporters and their guests. Cost is free but a $10 donation is suggested to help

This 50-foot vessel engineered by Art Anderson Associates will be used for gold dredging in Alaska.

involved with it, all while applying the engineering skills we enjoy,” said Ben Anderson, naval architect and project manager for Art Anderson Associates.

Interest in offshore gold dredging has grown significantly, driven by high gold prices, recent offshore lease sales by the state of Alaska, and the popularity of TV programs such as the Discovery Channel’s Bering Sea Gold.

The lease sales have driven a higher degree of professionalism among dredging companies, with the result that many builders are now more directly engaging engineering consultants like Art Anderson Associates. Pacifica project manager Rod Gleysteen illustrated this trend in an email, saying “I am guessing that we are Courtesy photo the first people to ever spend five dollars to have a marine engineer look at the rig.”

For more information about Art Anderson Associates’ projects, employment opportunities and community involvement, visit www.artanderson.com.

CUPPA BELLA

from page 1 preparing to open a second Cuppa Bella location in downtown Poulsbo.

“Our original intent was just to buy a business, and let it run itself,” says the cheerful 37-year-old proprietor, who comes in at 2 a.m. to start baking each day’s supply of bagels, scones and other treats. (He’s adding cupcakes to his repertoire.)

The circumstances that compelled his conversion to full-time baker also left no time to continue the family’s self-chosen mission to help feed the homeless in their community.

So the Cromans found another way: Earlier this year they decided to donate all net profits from their business to charity. Through a nonprofit foundation they set up, organizations can apply for grants that will be awarded twice a year, and the couple lets their Cuppa Bella staff pick the recipients. In October, the first grant of $2,500 went to North Kitsap Fishline, a food bank in Poulsbo.

Director Mary Nader said she’s grateful for the donation that will help fund Fishline’s Food for Thought program, which provides weekend meal packs that children in need take home from local schools.

“They’re breaking some ground here, and I think it’s fascinating,” she says of Cuppa Bella’s approach. “They’re trying to create a thriving business enterprise and give back to the community at the same time.”

When the hands-off approach wasn’t working out at their new business, the owners made some changes. Cuppa Bella was just a coffee shop when they bought it, but they started selling baked goods from outside sources, and they added a lunch menu. They were able to expand their cozy storefront space and enlarge their seating area with more tables and a sofa for a living room feel.

Tonya Croman, a mother of four who did in-home daycare but had worked previously as a cake decorator and barista, took over managing the place.

“I prefer this a lot better, because our customers know us,” she said.

Marcus commuted to his high-paying job as an IT professional in Seattle and helped out when he could.

While doing this, the Cromans also devoted time to the Kingston Rescue Mission, which they started several months before buying Cuppa Bella. They drove around North Kitsap on weekends in an old ambulance they bought, handing out sack lunches to homeless people.

Then came the life-altering events that left these generous charity providers and their four children (age 8 and younger) in need of a helping hand themselves.

Riding his motorcycle to work nine days before Christmas last year, Marcus was hit by a car.

He suffered a broken foot and other injuries, and during his hospitalization doctors discovered a worrisome cardiac condition.

Turns out the heart problem was related to stress from his job and commuter lifestyle, and his stress level soon got another jolt.

One month after the crash, a fire ignited at their home when the family was on an overnight visit to friends. Around the same time, Marcus lost his job because he missed so much time from work for doctor appointments.

The family endured, helped by an outpouring of support from the Kingston community, and kept Cuppa Bella going.

“We just kept moving forward,” Marcus explains when asked how the family dealt with such adversity. “All we had left was Cuppa Bella.”

They had decided earlier in 2011 to make their own baked goods in-house and hired a baker. However, that employee quit after a month, leaving the Cromans with no recipes,

32 • Kitsap Peninsula Business Journal • KPBJ.com December 2012

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The Cromans plan to open a second Cuppa Bella location at the former Liberty Bay Bakery in Poulsbo. and a small kitchen equipped only with a standard oven — not a convection oven typically used in commercial bakeries — that Marcus had bought for $200 on craigslist.

But rather than reverting to pastries from outside suppliers, he started from scratch and learned how to bake — a trial-and-error process aided by YouTube videos.

“Necessity’s a good teacher,” he says.

It took some time, he admits, to hone his new skills, but eventually he started producing delectable goodies to go with Tonya’s fancy coffee drinks. He even created a signature item — an oatmeal, chocolate chip and caramel concoction he calls “passion bars.”

The couple’s hard work and creativity in enhancing the menu, service and atmosphere at Cuppa Bella are paying off.

“This year we’re on track to be up 65 percent in sales over 2011,” Marcus says.

He makes about 9,000 bagels and scones each month in the small Kingston kitchen, and he plans to offer a wider variety of baked goods at the larger Poulsbo location, which was formerly the Liberty Bay Bakery. They hope to open early next year.

“We’ll start doing all our own breads, pies and doughnuts,” even funnel cakes, he said.

Not all at once, though. The Cromans started an online crowdfunding campaign through indiegogo.com in October, but fell short of their goal of raising $50,000 to renovate and equip the Poulsbo site.

Through the end of October, the campaign raised only $4,330, even with enticements like the 11 handmade birdhouses donated by a Cuppa Bella customer.

But Marcus — who used his computer skills to produce a poignant slide-show set to music for the fundraising appeal — is undeterred. He says they won’t be able to open as soon as they’d hoped, but they’ll set up shop as best they can and add kitchen equipment as business growth allows.

After all they’ve endured, it seems the Cromans — who recently were able to move back into their rebuilt home — will find a way to be successful in Poulsbo, and Marcus says they’re looking beyond that.

“I would like, probably in the next 10 years, to have five locations,” he says. “I think that’s a reasonable goal.”

One guy who likes their chances is the Cromans’ landlord in Poulsbo, and Hans Ebke knows something about the business. He and his wife, Pat, opened Liberty Bay Bakery in

1994 in the distinctive downtown building that has a clock tower and a “Velkommen to Poulsbo” mural painted on the exterior.

“They run a nice little operation out there,” says Epke, who visited Cuppa Bella in Kingston after the Cromans inquired about leasing the building that’s been vacant since the Poulsbo couple retired in 2011.

Tonya Croman remembers Epke from when she worked as a teenager at the bakery in the Poulsbo Albertson’s, and he was regional manager for the grocery chain’s bakery operations.

“We’re pretty excited to have them there,” says Epke, who learned the baking trade growing up in his native Germany. “If they do the things they’re doing over in Kingston, I think they’ll be very successful in Poulsbo.”

That would result in more profits and more grants to help the needy in the Cromans’ hometown of Kingston and the North Kitsap area. However, their business success won’t bring the Cuppa Bella owners personal wealth, and that’s their choice.

Marcus explains that their nonprofit foundation’s bylaws state that any directors — currently him and his wife — cannot be paid a salary from the business that exceeds the federal poverty level. The Census Bureau in 2011 listed that as $30,055 for a family of six like the Cromans, which is quite a drop from what Marcus used to earn.

“I could go back over to Seattle and make $150,000, which I was before, but I had a lot of stress,” he says, adding that he’s enjoying more involvement with his family in what he’s doing now.

“It’s a lot of work, but it’s good work,” Tonya says of running their business the way they do. “It’ll all pay off in the end, I think.”

Still, Marcus has reflected on the implications for their family, and sometimes wonders, “Am I taking away from a life we could have?”

“But looking back on it,” he adds, “I’m not sure we had a better life before.”

He recently hired an assistant he’s training to handle the 2 a.m. baking shift, but Marcus will still make the dough and do other prep work. The change will give him more time to work on the Poulsbo site.

Life is hardly a cakewalk, but he’s fully healed now from his injuries in the motorcycle crash, and confident in his evergrowing skills as a baker.

“I’m loving every day of it,” he says with a smile.

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2013 Audi Allroad: An Audi for any occasion

Interior: The Audi Allroad interior is, like all Audis, a highlight. The seats are supportive and comfortable. Front legroom is stretch-out spacious. The driver’s seat has power lumbar and both front seats are heated. The seats are wonderful on long trips. The thick, contoured leather-wrapped steering wheel is a pleasure to hold for hours on end.

The Allroad interior isn’t overly large (a reason to consider the Audi Q5), but an excellent (standard) Panoramic sunroof really makes the interior feel bigger. It has a power sunshade.

Cargo space is quite good in spite of the Allroad’s non-boxy styling. The angle of the rear pillars does eliminate some capacity, but flat folding split rear seats and a flat cargo floor increase capacity and flexibility (especially compared with vehicles with steeply angled seat backs). A power tailgate is part of the $3,300 Premium Plus option package.

Interior materials, colors, styling, ergonomics, quietness, and gauges are all firstrate. Satellite radio and modern electronic connectivity features are as expected in a contemporary high-tech vehicle.

Under The Hood: There is only one engine/transmission combination — a 2.0liter turbocharged I-4, which is rated at 211 horsepower and 258 lb-ft of torque. The transmission is an impressive 8-speed automatic. The Quattro all-wheel-drive system features a 40/60 torque split. The EPA rates the Allroad at 20 mpg city and 27 mpg highway. We observed 23.2 mpg in mixed driving conditions.

The engine and transmission performed flawlessly. Horsepower and displacement seem a little low on paper, but in the real world we didn’t have any complaints (just don’t compare the Allroad to an Audi S or RS model). All traffic and road conditions were easily handled.

Behind The Wheel: A superb driving experience is a key reason consumers buy Audis. The reputation of German vehicles as precisely engineered driver’s cars is well deserved. The Audi Allroad is a great road car.

It drives and handles like a car, not a top heavy SUV. It feels solid and at almost two tons it is solid. With an overall length of 186 inches on a 110-inch wheelbase it’s a good size compromise — not too big and not too small.

Braking is very efficient and body roll is minimal. The ride and handling are sporty, but not harsh. The 45-series all-season tires are another good compromise between sport and utility.

Whines: Lower number series Audis tend to favor front seat legroom at the expense of rear seat passengers and the Allroad is no exception. The rear middle seating position isn’t suitable for adults. The driveline tunnel is tall and wide and the seat is hard. Some larger interior storage bins would be appreciated.

Bottom Line: The 2013 Audi Allroad is a versatile vehicle in any environment, but it is especially suited to Pacific Northwest drivers.

It’s a solid, well-built, handsome, comfortable, sporty vehicle with a unique body style. The aptly named Audi Allroad is a pleasure to drive in all types of weather on any road.

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Walkaround: The 2013 Audi Allroad is noticeably changed from its namesake vehicles that were based on the Audi A6 Avant. Even though the new Allroad is based on the A4 sedan it’s slightly larger than the last (2005) A6 Allroad.

A key feature of the first series Allroad models was height-adjustable air suspension (great when new; not so great after 100,000 miles). The 2013 Allroad is 1.5 inches higher and has a 1-inch wider track than a comparable A4 sedan, but no complicated air suspension. It also sports stainless steel skid plates. These features provide a reasonable compromise between occasional rough roads/snow and normal highway conditions.

Aggressive body cladding is thankfully missing from the Allroad. There are tasteful fender flares and even they can be painted body color. The five-spoke alloy wheels are very sharp. We think the sport wagon styling is very handsome and prefer it to the alsoattractive Audi sedans.

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34 • Kitsap Peninsula Business Journal • KPBJ.com December 2012

By Bruce Caldwell The new-for-2013 Audi Allroad could very well have been called the Audi All Occasion, because it not only handles all types of roads, but all occasions from chores to evenings out. Think of the Audi Allroad as an athletic station wagon that’s nearly as capable as an SUV, but without the bulk or overly aggressive styling. The Allroad’s capabilities are hidden under its refined business suit rather than bulging out of a ragged, sleeveless denim shirt.

The 2013 Audi Allroad is based on the A4 Avant (Audi’s term for wagon), which is no longer available in the states. The A6 Avant is also absent from these shores, so if you want an Audi all-wheel-drive wagon (instead of one of the larger Q-series Audi SUVs) the Allroad is it. We don’t understand why domestic consumers shun station wagons in favor of more cumbersome SUVs, but sales figures don’t lie. We greatly prefer the more nimble driving experience of a sport wagon to the occasional need for added cargo space provided by an SUV. During the rare snow events seen in this region an Audi Avant or sedan with Quattro all-wheel-drive is an outstanding means of

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GMC Terrain covers all the bases with good mileage for a crossover than most truck-based SUVs. Cargo space is good, but not best in class. With the rear seat moved far forward in passenger configuration, there is 31.6 cubic feet of space — twice that of the typical compact sedan’s trunk. With the rear seat folded, volume expands to 63.9 cubic feet, which approaches that in some larger crossovers like the Toyota Venza or Ford Edge.

The center storage bin is big enough for a laptop computer, and the center console also has a tall, deep box, and that makes a great armrest, with plenty of room for things inside, along with four power outlets.

A 7-inch color touch-screen display became standard on all models in 2012, whether the vehicle is equipped with the optional navigation or not. The touch-screen incorporates all of the GM IntelliLink features and more is available on SLE-2, SLT models and Terrain Denali. SiriusXM Satellite Radio (with three-month trial period) is standard on all Terrain models, as is GM’s OnStar, Bluetooth and a rear-view camera.

Technology includes USB and auxiliary inputs that are standard on all models in 2013, while a premium Pioneer sound system with subwoofer and amplifier is standard on SLE2, SLT models and Denali. A rear-seat entertainment system is available on SLT-2 and Denali, and there’s an enhanced handsfree voice control system, which allows simple voice commands to initiate phone calls and select radio stations or media from portable MP3 players and smart phones.

Upgraded USB connectivity adds the ability to play music directly from memory devices, along with the ability to update IntelliLink with future feature enhancements.

PANDORA and Stitcher Internet radio allows users to create personalized radio stations while GM’s IntelliLink integrates control of both of these apps for driverdirected listening. Gracenote® identifies the music collection on portable USB devices, while the MP3 player or smart phone presents information such as artist name, genres and album cover art on the IntelliLink screen.

The Denali version includes most of the Terrain’s optional equipment as standard, including lane departure warning and forward collision alert, as well as a blind spot and rear cross-traffic alert — features previously unavailable.

GMC engineers have used acoustic blankets between the engine and dash to minimize engine noise, while acoustic laminated glass helps manage wind noise. The doors are triple-sealed for further quieting and efficient climate control.

Under The Hood: The standard powerplant is the182-horspower, Ecotec 2.4liter four-cylinder that delivers an EPAestimated 22/32 mpg City/Highway with front-wheel drive. The new 3.6-liter directinjected V6, delivers 301 horses and 272 lb-ft of torque. It boasts 14 percent more horsepower and 23 percent more torque than the previous 3.0-liter V6 it replaces, with EPA numbers at 16/23. Both engines are mated with a six-speed automatic.

Behind The Wheel: The Terrain offers a nice balance of comfort, and all-around versatility. The suspension is fairly soft,

delivering a smooth, isolated ride, with relatively little vibration in the steering wheel on semirough roads. Cornering is predictable thanks to a fairly wide stance, without a lot of body roll or brake dive.

The Terrain offers more than adequate acceleration with either engine, and can run on E85 biofuel. The optional allwheel-drive is suitable for some off-road trails, and is helpful in Pacific Northwest winter weather.

On the highway, sixth gear acts as an overdrive, so the Terrain V6 cruises at highway speeds easily and quietly, loafing at around 1,700 rpm at 70 mph, yet still responds quickly to power demands for onramps and passing. However, passing results in a double downshift in quick succession, but with very little shift shock. Under full throttle, there’s plenty of available power, but not excessive noise.

Whines: I found the steering to be somewhat less than responsive for my personal taste. Admittedly, this is a personal bias.

Bottom Line: Technically, the GMC Terrain is a compact, crossover SUV, that’s nearly large enough to be considered a midsize sport-utility, with lots of room inside. It

primarily competes against the Honda CR-V, Toyota RAV4 and Ford Escape, as well as mid-size models like the Ford Edge and Nissan Murano. To me at least, the Denali version seems to be in an odd competitive space, as some buyers might cross-shop it against a high-end Murano, top-of-the-line Edge, or Acura RDX as well.

It’s most obvious strength is the comfortable, quiet, spacious, well-equipped cabin that offers enough rear legroom and interior volume for comfort on long trips. It’s loaded with technology and safety features, and the standard four-cylinder delivers good acceleration and great mileage, while the V6 offers increased towing capacity. Optional allwheel drive, available with the four-cylinder, makes the Terrain suitable for just about any environment.

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December 2012 Kitsap Peninsula Business Journal • KPBJ.com 35

By Lary Coppola The GMC Terrain could be termed the “Professional Grade” version of the Chevrolet Equinox SUV. The second generation of this mid-size Theta-platform crossover is not a new vehicle, but the addition of a Denali version for 2013 — complete with a new grille, some extra chrome, an upgraded interior, and a new powertrain — are new.

The Terrain is offered in front-wheel-drive and all-wheel-drive models, in SLE and SLT trim levels, as well as the new Denali.

Walkaround: Built in the same plant, with the same mechanical components, on the same aforementioned Theta Platform as the Chevy Equinox, the GMC Terrain is targeted to appeal to a different buyer.

Technically a compact, the Terrain appears larger, as its dimensions (and those of the Equinox) come close to some mid-size SUVs and crossovers.

Bumper to bumper, the Terrain is slightly longer than the Ford Explorer, while most of its dimensions are slightly larger than the Ford Edge.

Since GMC only builds trucks, the Terrain offers bolder styling with a larger, more distinctive grille than the Equinox, and its wide stance and high beltline have a more aggressive look as well.

The Terrain uses broad sheetmetal surfaces for clean lines, featuring chrome accented door handles and windows. The exterior rocker panels have a textured antichip layer of paint, telegraphing the message the Terrain could be functional in more unforgiving urban and rural environments. A sleek roof rack provides additional cargo capacity.

A chrome grille, body-color fascias and rocker moldings, satin-chrome accents, specific headlamp and taillamp designs, and chrome-finished exhaust outlets, along with distinct badging delineate the Denali version from the standard Terrain.

Interior: The GMC Terrain is a comfortable, versatile vehicle for families or couples with active lifestyles.

The cabin is open and relaxed, with softtouch surfaces, curving lines and good fit and finish. The low dashboard leans away from the front occupants, and the floating center stack creates a spacious feel, with the mostused controls ergonomically placed within easy reach. It looks high-tech, but isn’t overly complicated. Instrumentation is lit in orange, with bright white numerals, and the subtle ambient interior lighting creates a well-lit, but not overly bright, nighttime environment.

Seats use a contrasting inset with attractive stitching. The driver has a high seating position, offering the same visibility and command of the road as traditional body-onframe SUVs. The seats are comfortable and adjustable enough to offer comfort on long drives, although no third row seat is available.

There’s more than enough legroom for an average-size person, and GMC paid special attention to accommodating shorter drivers (read: women), with a design that optimizes accelerator pedal positioning suitable for a wide range of body types.

Terrain’s step-in height is relatively low, making entry, exit and rear-seat loading easier

Publisher Lary Coppola Editor Tim Kelly Advertising Sales Dee Coppola Creative Director Steve Horn Webmaster/IT Greg Piper Graphic Design Kris Lively Office Administration Jennifer Christine Web Host PCS Web Hosting LLC Contributing Writers Rodika Tollefson Don Brunell Kathleen Byrne-Barrantes Dan Weedin Julie Tappero Jason Parker

36 • Kitsap Peninsula Business Journal • KPBJ.com December 2012

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Reproduction or use of any editorial or graphic content contained herein in any manner whatsoever without the expressed written consent of the Publisher is strictly prohibited. The Kitsap Peninsula Business Journal is proudly composed using Apple Macintosh® computers and printed by The Kitsap Sun, Bremerton, WA. Views expressed herein are strictly the opinions of the authors and do not necessarily reflect those of the advertisers or ownership of The Kitsap Peninsula Business Journal.

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Economic plans, local and regional, aligned and coming together

By John Powers, Kitsap Economic Development Alliance On Oct. 30 the Kitsap Aerospace and Defense Alliance (KADA) issued its first Annual Report to the Kitsap Community (www.kitsapaerospace.com). This report details progress made on implementing KADA’s Strategic Plan adopted in April of this year.

A week later, on Nov. 5, the Puget Sound Regional Council rolled out its second-generation, five-year Regional Economic Strategy – Prosperity Partnership 2.0 – and published a list of action item priorities for 2013 (www.prosperitypartnership.org).These priorities are tailor-made to advance economic development objectives in KADA’s Strategic Plan – a plan to position Kitsap, and in particular the South Kitsap Industrial Area (SKIA), to participate in the long-range expansion of the region’s aerospace industry; as well as our continuing efforts to strengthen our region’s leadership role in the defense industry.

As you read through these respective plans you might begin to wonder whether they were developed simultaneously and in concert with one another; well wonder no more – they were – by design. These strategic plans, critical to Kitsap’s economic future, are well aligned and coming together to guide our regional and local economic development efforts for generations to come. The overarching objective

of these plans is to identify and leverage regional economic strengths, and advance our priority opportunities via collaborative execution of tactics aimed at accelerating the rate at which we attract investment and grow jobs in Kitsap and throughout the Central Puget Sound Region.

The Regional Economic Strategy focuses on 10 industry clusters that underpin our regional economy: Military; Maritime; Aerospace; Information Technology; Clean Technology; Life Sciences & Health Care; Business Services; Transportation & Logistics; and, Tourism. Kitsap is already a leader in our region’s military and maritime Industries; and, through the work of KADA we are positioning our community to play a meaningful role in the rapidly expanding aerospace industry. In addition, Kitsap is home to a growing technology cluster that contains dozens of technology companies recognized as industry leaders in their particular areas, and whose technologies cross over between commercial and defense applications – our sweet spot! Additionally, we are well represented in the tourism sector — that work is coordinated by the Kitsap Peninsula Visitor & Convention Bureau and others.

Both the Regional Economic Strategy and KADA’s Strategic Plan recognize the preeminent importance of education and workforce development in building economic competitiveness. Our respective game plans to grow jobs and economic

activity clearly identify the critical need to align education and workforce training with the high-demand jobs of today and tomorrow. To insure Kitsap remains competitive, our Aerospace and Defense Alliance (KADA), and our Economic Development Alliance (KEDA), collaborate with our local K12 school districts to promote the importance of science, technology, engineering and math (STEM) education for our children. We also support the vital role of Olympic College in preparing students for goodpaying jobs in the maritime, aerospace, defense, technology, advanced manufacturing, and health care sectors of our community. We help guide the important work of WorkSource Kitsap and the Olympic Workforce Development Council in working with employers to meet their current workforce needs.

And, finally we work directly with local businesses to connect them to contract opportunities with government and the Department of Defense through KEDA’s Procurement Technical Assistance Center (PTAC) programs. To date this year, PTAC clients who have attended a PTAC class at KEDA and/or received one-on-one PTAC assistance have garnered over $35 million in government contract work. Ya Gotta Luv It When Plans Come Together… and Produce Results!

• John Powers is executive director of the Kitsap Economic Development Alliance.

Twinkies and the new reality companies to win wages and benefits that would serve as the model for contract talks with the rest of the industry.

But when miners in Butte threatened to strike Anaconda again in 1983, it was the last straw. The company had reached its tipping point.

Over the decades, the once-giant Anaconda Copper Co. had become weakened by fierce global competition, lower copper prices and environmental costs. In 1977, it was sold to Atlantic Richfield (ARCO). But the union didn’t believe it when company owners said there was no money for higher wages and benefits.

Implementing a strategy that had always worked before, the miners’ union called for a strike. In response, Anaconda suspended all mining and smelting operations, flooded its underground mines and demolished its smelters at Anaconda and Great Falls.

In today’s tough global economy, the old rules no longer apply. The head of the bakery workers’ union didn’t understand that. His strategy had always worked before; surely it would work again. But he was wrong.

Regardless of what caused the company’s weakened financial condition, the result was the same: there was no more money.

It is a lesson for us all. V oters want to keep all the programs, entitlements and services we’ve grown accustomed to, but we don’t want to pay higher taxes. As a result, the federal government borrows $3.87 billion each day to provide these goodies, in the process ruining America’s once-great credit rating and shackling our children and grandchildren with generations of debt.

At some point, we need to understand that there isn’t enough money to have everything we want. And stubbornly refusing to acknowledge this new economic reality isn’t the solution.

Just ask the folks who used to work for Hostess.

• Don Brunell is president of the Association of Washington Business. Formed in 1904, the Association of Washington Business is Washington’s oldest and largest statewide business association, and includes more than 8,000 members representing 700,000 employees. AWB serves as both the state’s chamber of commerce and the manufacturing and technology association.

While its membership includes major employers like Boeing, Microsoft and Weyerhaeuser, 90 percent of AWB members employ fewer than 100 people. More than half of AWB’s members employ fewer than 10. For more about AWB, visit www.awb.org.

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December 2012 Kitsap Peninsula Business Journal • KPBJ.com 37

By Don C. Brunell, Association of Washington Business The end of Hostess Brands Inc. is a lesson for us all.

Hostess, maker of Twinkies, Ding Dongs and Wonder Bread, was trying to emerge from its second bankruptcy in three years, when a bakery workers’ strike effectively signed the company’s death warrant. When the strikers refused to return to work, the company shut its doors, putting 18,500 people out of work.

The bankruptcy judge made one final attempt at mediation, but the union president didn’t attend, sending another union officer in his place. When the sides couldn’t agree, Hostess officials said they would proceed with plans to liquidate the company’s assets.

The Teamsters union had accepted a pared-down contract for the company’s delivery drivers and urged bakery workers to do the same. But Frank Hurt, the 20-year president of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union, exhorted his members to reject further concessions.

As a result, everyone lost their jobs.

Hurt has been criticized by Teamsters’ members and others for pushing the strike despite the company’s economic woes.

Bankruptcy Judge Robert Drain said there are “serious questions as to the logic behind the decision to strike.”

But Hurt refused to take the blame, instead blasting Wall Street “vulture capitalists.” A statement on the union’s website said: "The Wall Street investors who took over the company after the last bankruptcy attempted to resolve the mess by attacking the company’s most valuable asset — its workers.”

The Hostess strike reminds me of a similar standoff with the Anaconda Copper Co. in Butte, Mont., 30 years ago — right down to the Twinkies.

When I was growing up in Butte, three things were certain: taxes, death and miners’ strikes. You could tell when the miners’ strikes were coming to an end because the Hostess delivery man started stocking the grocery stores with Twinkies and cupcakes — staples in the miners’ lunch buckets.

Historically, the miners’ union would strike one of the big three mining

Is honest, unbiased, political journalism roadkill?

38 • Kitsap Peninsula Business Journal • KPBJ.com December 2012

Now that Election 2012 is finally history, after what seemed like an endless — two-plus years — two things remained consistent: The Lamestream Media served as the official press office of the Obama campaign — so no matter what he did, or didn’t do that he should have (can you say Benghazi?), they had his back — and its systematic and successful branding of every Republican contender as an obnoxious loser representing only the wealthy.

I’ve said for years there isn’t a way for Republicans to shoot themselves in the foot they haven’t thought of, but that I have great confidence in their ability to invent new ones. Election 2012 was no exception.

There are more reasons the Republicans lost than I have room to describe here, but as usual, the wounds were self-inflicted.

Conservatives scared half the women in America into voting Democratic with their agenda of eliminating abortion, while the Lamestream Media used that to convince women the Republican Party had actually declared war on them — and to some extent, it has.

Abortion has been the law of the land for almost a half century, and is widely supported. If the Republicans ever want to win another national election, they need to get over it and move on. It’s time for the conservative old white men running the party to step aside and turn the reins over to new, younger and more diverse and pragmatic thinkers — people like Florida Sen. Marco Rubio, and New Jersey Gov. Chris Christie for example. That doesn’t mean abandoning the fiscally responsible principles of the party, but it does mean

moving much closer to the center than it’s been for decades, because Republican candidates at every level from local dogcatcher to Congress are painted by the Lamestream Media with that reactionary Conservative brush — even when there is no shred of credibility in it.

One only needs to look at our LARY COPPOLA local and state election results The Last Word to confirm that.

However, from the very start of the race in early 2011, every single Republican candidate who represented a serious threat to Obama was trashed in the media — most so badly they couldn’t salvage their campaigns afterwards.

And let’s be honest, there were some — like Michelle Bachman — who had no business even being in the race. She threw herself under the bus by providing sideshow entertainment for the predatory media with her outrageously uninformed pontifications.

For example, Sarah Palin was attacked very early on as “vacuous, crass, and vindictive” — just in case she did decide to run.

Meanwhile, Politico and other media outlets gunned down Herman Cain — who, because as a successful African-American, Republican businessman — he represented a potential game-changing threat to Obama. So he was tried and convicted of sexual harassment in the Lamestream Media without his accusers ever being named, without the

opportunity to face them, and without a trial.

The Washington Post reported Rick Perry’s family had leased a hunting property where the N-word was painted on a rock, neglecting of course to mention it was Perry’s family that painted over it.

Chris Matthews didn’t hesitate to smear Newt Gingrich — who I personally believe represents everything wrong with politics in America today — by saying “He looks like a car bomber.”

Meanwhile, Mitt Romney was the only candidate who seemed to avoid his own personalized media hit squad until he became the nominee. Once that happened, all hell broke loose, as the entire Lamestream Media now had him in its crosshairs.

Why is the Lamestream Media so protective of Obama, despite the fact we actually know little of his history, and that he rarely reciprocates with them? The answer is that the White House has turned access — the lifeblood of news reporting — into a sledgehammer. For any serious reporter asking real questions, or writing about the ongoing serial dishonesty of this administration, access to sources is systematically denied, and/or terminated.

For reporters on deadline — especially TV reporters — that’s the kiss of death.

Before Election Day, Obama hadn’t called a White House press conference since June. He should have been in Washington attending intelligence briefings leading up to the Sept. 11 attack on our consulate in Benghazi, Libya, because as Gen. David Petreaus has testified, Obama was made aware of the threats, and the requests for

increased security. But he felt focusing on one softball interview after another — Leno, Letterman, The View and Access Hollywood, as well as fundraisers in Las Vegas and Hollywood — were more important. So it’s ironic at best that the only man hammered by the Lamestream Media on the Benghazi scandal was Mitt Romney.

But now that Obama has been re-elected, we can look forward to making the best of another four years of his same “progressive” agenda — only carried out more aggressively since re-election is no longer a threat. That means continually increasing energy prices as the administration works to shut down the coal, oil, and gas industries to support economically unviable green energy; the same slow economy, weighed down by debt, higher energy costs and everincreasing regulations; further reductions in the military and our ability to protect our nation; more gridlock in Washington as America is more polarized than at any time since the Civil War; and more of the same Lamestream Media reporting that all these are good things under Obama.

But before you accept what’s reported in the Lamestream Media as fact, let me suggest reading, or rereading, one of the most prophetic books of our time — “1984 ”

by George Orwell, a dystopian tale in which language and truth are corrupted. It contains two quotes the Lamestream Media — if it had any cojones — would embrace … "If liberty means anything at all, it means the right to tell people what they do not want to hear." And my personal favorite — "In times of universal deceit, telling the truth becomes a revolutionary act."

Frenzy over huge lottery jackpot covers up the real story This might be my last column.

That’s right, by the time this edition comes off the press, I might be long gone on a hang-gliding adventure in New Zealand or dancing the samba on the beach in Rio. Assuming, of course, that I bought the winning ticket in the $500 million Powerball drawing.

Daydreams like that are the result of dangling the allure of what one online columnist called “Romney riches” in front of a gullible populace.

Is such whimsical fantasizing a bad thing? A little “what if” indulgence now and then seems harmless enough, even if the odds of winning last week’s riches were pegged at 175 million to 1.

But state-run lotteries — which only generate media coverage when mindblowing jackpots lure throngs of ticketbuying dreamers — have a disturbing back story that’s willfully ignored.

In a Salon.com piece titled “Powerball’s dark side,” Natasha Lennard cites several studies that show lottery sales are disproportionately higher among people at

the low end of the prosperity spectrum.

Studies in several states found “per capita lottery sales are consistently higher in the poorest counties and tickets are more likely to be purchased by unemployed individuals.”

And this is true not only when there's an TIM KELLY astronomical Powerball Editor’s View jackpot in play, but on a daily basis with sales of scratchoff tickets, Keno sheets, Mega Millions, Match 4, Hit 5, you name it. And though Washington is an exception, lotteries in Oregon and other states put video slots and video poker terminals in restaurants and bars.

According to a PBS report from earlier this year cited in Lennard's column, households with an annual income of $13,000 or less spend about 9 percent of their money buying lottery tickets.

What all this confirms — as I’ve heard it

succinctly if crudely expressed — is that the lottery is a tax on the poor and stupid.

But in a country with such loathing for taxes that many Republicans in Congress have been pressured into signing an anti-tax pledge, this particular tax is tolerated.

That's partly because state governments don't want to give up the revenue they get from the lottery, especially when they're struggling with budget crises year after year.

It's also because playing the lottery is regarded as a voluntary tax.

However, Lennard points out that it's essentially a regressive tax on poverty: "Tickets not only cost relatively more for a poor person than a rich person, but lowerincome individuals are also consistently the majority of volunteers for this tax."

She also argues that simply focusing on whether it's a wise consumer choice to spend limited resources buying Powerball tickets misses the point about poor people being the lottery's lifeline.

"This business of dreams," she writes, "while almost exclusively framed by the media on jackpot days like today as a

frivolous moment of national excitement, is undergirded by poverty — it relies on it and does nothing to ameliorate the conditions that make poverty a reality."

So here's something to think about: If you favor cutting taxes, how about eliminating the state lottery?

Washington would lose the $138 million it got from the lottery in 2012, which is only a sliver of the total state budget.

The loss of revenue from this voluntary tax on the poor could be offset by taxation of legalized marijuana. (Obviously, lowincome folks will also contribute to that tax collection, but they'll get some gratification, unlike the countless suckers who get nothing from their lottery spending.)

The estimated net revenue, once the state sets up its system to regulate and tax marijuana, could be more than $500 million annually.

Put another way, marijuana taxes could effectively make Washington a Powerball winner every year.

Let's take a gamble on that, instead of letting the siren song of the lottery go on.

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December 2012 Kitsap Peninsula Business Journal • KPBJ.com 39

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